LG International corporate profile

Contents03 The hisTory of challenges

14 Vision

15 oVerVieW

16 our business

30 abouT lg

31 lg Way

32 oVerseas neTWork

The History of Challenges

In 1953, LG International was established as a trading company within LG Group.

lg international was an import and export specialty company in the lg group which

opened a new era for chemical and electronics industry in korea in 1940s and 1950s.

Since then, LG International has expanded its business lines from light industries to heavy industries, leading to rapid growth.

at the forefront of international trade, lg international has exerted efforts to increase

export of republic of korea, and contributed to the rapid growth of korea economy.

especially, exports of heavy industrial products and plant orders have led to diversification

of business items and market.

With change coming, LG International responded to the challenges of evolving global markets by focusing on overseas development projects that secured the nation’s access to critical raw materials and energy resources.

1983

1994

1995~

2000~

The first step toward this new strategy was taken in 1983, with lg international’s

participation in the ensham bituminous coal mine project in australia.

in 1994, lg international became the first foreign company to enter

the mine development field in russia.

beginning in the mid 2000s, lg international expanded along the value chain to include

direct operations among its core capabilities.

The company has expanded into oil and gas development

projects in several international locations.

Now, LG International is preparing to meet the challenges of the future by establishing its leadership in green and renewable energy.

2009

in 2009, lg international is operating crude palm oil (cpo) plantation

businesses in kalimantan, indonesia. it is already producing cpo there.

2010~

lg international plans to continue expanding its green businesses

in various developing nations, including indonesia, in a bid to lay the

groundwork for long-term profits.

A history of challenge

A story of success

and the professionals who make it happen

LG International

14

Vision

LG International is a Global Business Challenger challenging the future and proactively pursuing businesses in Resource development, trading and Project business domains.

“the Way Forward –the path to the future growing together with customers, partners, and employees”

OUR VISION SYSTEM

15

overview

since its establishment in november 1953, LGI has been part of the driving force behind leading south Korea's trade and economic development. From 1970 to 1980, LGI spearheaded the export and import related activities of the country's major industries. In the 1990s, LGI entered new businesses, such as the natural resource development and plant construction. In 2000, LGI began investment in related fields, and a true specialist in the development of natural resources.LGI has currently secured 80 business hubs globally, including Asia, europe, and north America. LGI is conducting 30 projects in coal, petroleum, non-ferrous metals, and palms, among others. Furthermore LGI is not only making progress in ‘national development type projects’, but also actively fostering project businesses such as power generation and chemical plants which links with natural resources and tradings as engines for future growth.through change and innovation, LGI will continue to sustainably grow as a global company even in challenging market environment.

Our businesssuperior management infrastructure, broader insights into the future, global network with diverse business experience as well as marketing abilities. These are what make lg international successful in our diverse business areas.

ENERGY ·RAW MATERIALS

INdUSTRIAL MATERIALS

development of Resources Green

coal

petroleum

nonferrous Metals

crude palm oil plantation

IT, Auto & Aviation Petrochemical SteelProject

iT

auto & aviation

petrochemical project

power generation

hot-rolled iron and steel

cold-rolled iron and steel

chemical fiber resins

petrochemical products

coal chemical engineering

18

Development of ResouRces To build up the business foundation for resources development, LGI has acquired

coal mines beginning in Australia, Russia, and later in Indonesia and Inner

Mongolia, China. It has also acquired oil fields beginning in Vietnam, Kazakhstan,

and later in Oman and Qatar in the Middle East, and Chile and Colombia in South

America.

In addition, LGI purchases nonferrous metal materials from suppliers all over the

world, and stably supplies them to its domestic and overseas customers. It plans

to invest and expand its business in Central America and Africa where resource

is rich.

EnErgy ·raw MatErials

Development of Resources

Green Business

coal

petRoleum

nonfeRRous metals

oil platform in West bukha,

oman

19

COALCoal is one of the initial businesses of LGI’s resource development. Beginning from Australia, LGI has expanded its coal business to Russia, Indonesia, China, and Canada. By investing in coal mines and securing coal off-takes, LGI has contributed to the increase of Korea’s energy independence.LGI started operating the Indonesian MPP bituminous coal mine from 2009. It was recorded as the first attempt for a Korean trading company to succeed exploration, development and production of coal. Following this success, LGI acquired the Wantugou bituminous coal mine in Inner Mongolia, China, and the GAM sub-bituminous coal mine in Indonesia. to strengthen its coal trading business, LGI plans to expand its sales network mainly in China and India, and invest in logistic infrastructures such as coal storage yards and port facilities in an attempt to take a giant leap forward to becoming a major coal trader in Asia.

PETROLEUMto stably supply petroleum and gas energy, LGI is operating oil field and gas field businesses in oman, Qatar, Vietnam, Kazakhstan, and Chile. Beginning in southeast Asia, it is expanding its business to the Middle east and Central Asia. It recently expanded its investment scope to south America. LGI has acquired stakes in production blocks, exploration blocks, and operations mainly in strategic regions such as the Middle east, Central Asia, and south America. It is further increasing its production and securing reserves in the blocks it has invested in such as Block 8 in oman, ADA in Kazakhstan, and GeoPark in Chile and Colombia. through strategic alliances with companies which hold advanced technologies, LGI plans to enter into shale gas business in north America.

NONfERROUS METALSLGI manages investment and trading business of nonferrous metals commonly used as industrial raw material. We are expanding our investment portfolio to the Americas where non-ferrous metal resource is abundant. our trading business involves supplying non-ferrous metals domestically and internationally, and at the same time looking to diversify our business portfolio. In addition to participating in the development of the Rosemont mine in the UsA to secure copper and molybdenum, LGI is searching for other business opportunities to secure long-term and stable sources of profit. Amid the rising demand for nonferrous metals due to the sophistication of industries, LGI purchases industrial nonferrous metals such as aluminum, copper, tin, and zinc from suppliers all around the world, and supplies them to domestic and international industrial manufacturers.

1. Mpp bituminous coal mine

in indonesia

2. oilfield in kazakhstan

1

2

20

GReen BusinessLGI creates sustainable green business models such as crude palm oil plantation

businesses to stabilize its profits.

It is steering its plantation business toward the creation of large-scale palm

plantations in Indonesia, the world’s largest crude palm oil producer. LGI has

built CPO production mills and is now producing and selling CPO.

EnErgy ·raw MatErials

Development of Resources

Green Business

cRuDe palm oil plantation

21

CRUdE PALM OIL PLANTATIONLGI operates crude palm oil (CPo) plantation business in Kalimantan in western Indonesia. After launching the business in 2009, it constructed CPo mills in 2012, and is now producing 40,000 tons of products a year. In line with the increased output of its palm plantations, it is pushing to construct more CPo mills. CPo is a vegetable oil that is extracted by compressing palm fruits using the pure compression method. It is being spotlighted as the main raw material of cooking oil, cosmetics, bio-diesel, and many other products. As such, companies all over the world are investing in CPo production.

palm oil plantation in indonesia

22

pRoject LGI is implementing projects that involve investing in, developing, and

constructing various plants and infrastructure facilities for oil & gas,

petrochemical business, and power generation. Toward these ends, it forms

consortia with domestic and overseas construction companies, and invests

in such projects, in what is seen as an intensive business that integrates the

information, business development, investment, finance, and required functions.

Beyond mere participation in the construction of plants, LGI provides the

values its customers need from the initial stage of the business, and extensively

explores business opportunities by managing investments and by securing rights

to sell products.

petRochemical pRoject

poweR GeneRation

industrial MatErials

Project

IT, Auto & Aviation

Petrochemical Business

Steel

galkynysh gas treatment plant in Turkmenistan

23

PETROChEMICAL PROjECTLGI launched a vinyl chloride business in saudi Arabia in1983, and has since been earnestly implementing plant projects. It has won orders such as for oil refinery plant in Qatar, gas plant in Iran, and polypropylene and aromaticsplants in oman, thereby expanding its plant businesses in the Middle east. It has also participated in plant businesses as a equity investor, thereby securing country marketing capabilities to be able to provide needed values to its target countries. With such experience, LGI won orders for gas treatment and oil refinery plants and recently has won ethane cracker and polymer plants in turkmenistan. From its successful business experiences in emerging markets, it is expanding its plant businesses.

POWER GENERATION PROjECTSLGI has been continuing to push ahead with its power generation businesses including fossil fuel thermal and hydroelectric power generation in the Middle east and southeast Asia. In addition, it is pushing ahead with its renewable power generation businesses such as photovoltaic power generation in United states.We focuses on taking a role of Independent Power Producer in these business fields. In particular, LGI is vigorously participating in equity investments in power generation projects, while combining our capabilities further into construction and operation of power generation plants.

1. noDco oil plant in Qatar

2. solar power plant in usa

1

2

24

industrial MatErials

Project

IT, Auto & Aviation

Petrochemical Business

Steel

it, auto & aviationLGI is active in the import, export and third-party transaction of Electronic

equipments. We are able to provide greater value and flexibility to our clients by

operating a VMI(Vendor Managed Inventory) system that relies on strategically-

located hubs. Such a system allows us to offer on-time delivery, while helping

us to expand our customer base and to effectively enter a larger number of

emerging markets.

circuit board

it

auto & aviation

25

ITLGI markets key It components through businesses such as supplying displays and electronic parts produced at home and overseas, and conducting tripartite trade of LCD panels and wafers.Also, LGI provides consumers optimal supply chain management services by establishing ‘VMI(vendor management inventory) business model which offers new values to consumers. We not only store key materials and components in warehouses, but also develop an infrastructure designed to deliver supplies to our customers at timely manner, thereby offering new values to our customers.

AUTO & AVIATIONLGI conducts businesses related to automobiles and aviation.We provide diverse services that are focused on automobile design, manufacturing facilities, and key parts in the automobile field, as well as elevators and building solutions in the industrial machine field. We aim to become a world-class machinery trader.In the aviation field, we import Russian-made helicopters, and sell them to major domestic government agencies and private operators. We provide excellent follow-up support services at our maintenance center by supplying helicopter parts, and conducting helicopter maintenance and repair services. In addition, we actively explore energy-related businesses, such as energy storage systems (ess).

1. Manufacturing facility for lcD

2. VMi center in china

3. kamov helicopter

1

2

3

26

petRochemical BusinessIn the petrochemical business category, LGI is trading plastic product raw-

materials such as PE/PP and PET, as well as various chemical products such

as petrochemical products, methanol, and sulfuric acid. It recently entered the

fertilizer business. In particular, by investing in overseas production factories, it

secures the manufacture of Korean-made products by laying the groundwork for

their stable supply.

chemical fiBeR Resins

petRochemical pRoDucts

coal chemical enGineeRinG

industrial MatErials

Project

IT, Auto & Aviation

Petrochemical Business

Steel

27

ChEMICAL fIBER RESINSLGI’s chemical fiber resin business involves various products such as general plastic resins like PP, Pe, and PVC, as well as functional plastic resins such as Pet and ABs. LGI sells the products in major global markets and conducts tripartite trading.

PETROChEMICAL PROdUCTSIn the petrochemical products business category, under long-term agreements with domestic and overseas companies, LGI, based on its information-gathering capabilities and professionalism, trades major petrochemical products such as olefin and the polyester raw materials sM and BtX. In addition, LGI is a major domestic supplier and exporter of general chemical products such as methanol, sodium carbonates, and sulfuric acid. It domestically sells, imports and exports functional chemical products such as alcohols and synthetic rubber. As such, it trades diverse petrochemical products using diverse trading methods.

COAL ChEMICAL ENGINEERINGIn cooperation with chemical companies on projects, LGI has laid the groundwork for operating its petrochemical business, which allows it to stably supply products at the needed volumes and to expand its business. In addition to acquiring LG DAGU (PVC) and LG BoHAI (VCM), LGI recently became the first Korean company to acquire a stake in coal chemical engineering urea plants located in Inner Mongolia, thereby entering the fertilizer business. through this project, LGI has not only secured volumes of products to sell, but has also undertaken to supply raw materials, securing a source of revenue which differentiates from that of general manufacturers or trading companies.

1. lg Dagu, the pVc plant in Tianjin, china

2. china's coal chemical urea plant

1

2

28

steelIn the steel category, LGI operates a hot-rolled and cold-rolled steel business.

for its hot-rolled steel business, it imports and exports, and conducts tripartite

trading, of construction materials, thick plates for shipbuilding, and other basic

steel material products. for its cold-rolled steel business, it exports and sells

domestically produced cold-rolled steel materials to overseas end-users such

as home electronics and car manufacturing companies. In particular, LGI's

investment in coil centers also allows it to manufacture and sell cold-rolled steel

products overseas, thereby expanding its overseas markets.

cold-rolled steel

hot-RolleD iRon anD steel

colD-RolleD iRon anD steel

industrial MatErials

Project

IT, Auto & Aviation

Petrochemical Business

Steel

29

hOT-ROLLEd IRON ANd STEELLGI purchases steel materials from steel suppliers of Korea, China, southeast Asia, trades and conducts tripartite trading. though expanding supply volume, it is bolstering its competitiveness in construction materials and thick plates for shipbuilding areas. In addition, LGI has laids groundwork for tripartite trading via strategic alliance with steel mills in China and is currently developing markets not only in Middle east and Africa but also in europe, Central and south America which are more distant.

COLd-ROLLEd IRON ANd STEELLGI exports cusomized cold-rolled steel materials which are domestically manufacture to overseas end-users such as home electronics and car manufacturing companies. In particular, in China, India and Poland, LGI operates Coil Center and provides local customers one stop service which include manufacturing, logistics, and financing services. It plans to futher expand business in emerging markets Russia, thailand, Mexico and Brazil.

1. Manufacturing facility for hot-rolled steel

2. coil center in poland

1

2

30

Telecommunications& Services

lg electronics

lg chem

lg u+

LG International

lg solar energy

lg cns

lg n-sys

lg sports

lg Management Development institute

lg MMa

lg household& health care

lg hausys

lg polycarbonate

lg Display

lg innotek

lg siltron

Chemicals

Electronics

About LG

ever since its first steps over 60 years ago, LG has always committed to be “the first.” Leading the way in corporate management and customer satisfaction, the LG Group is now one of the largest conglomerates with interests in electronics, chemicals, and telecommunication & services. Without resting on our laurels based on the achievements to date, the LG Group leaps forward to endure another 100 years and more.

31

the LG Way represents LG’s core beliefs, values, and aspirations. It illustrates a vision structure that guides the thoughts and actions of LG people in attaining the ultimate goal of becoming a no. 1 LG. It stipulates the way in which this goal is reached through the practice of “Jeong-Do” Management, and the realization of LG’s management principles, “Creating value for customers” and “Respecting human dignity.”

VISIONLG’s vision is to become the best in its class by winning customers’ acclaim as a true leader in the global market.

COdE Of CONdUCT“Jeong-Do” Management is LG’s unique code of conduct that governs our management activities. the english translation of “Jeong-Do” is “Right Way.” “Jeong-Do” Management is the way we display our uncompromising integrity in pursuing LG’s management principles.

MANAGEMENT PRINCIPLESLG’s management principles state the purpose of LG’s business activities, and also provide a basis for its operations. It embodies the key concepts of “Creating value for customers” and “Respecting human dignity.”

LG Way

Vision

Code of Conduct

ManagementPrinciples

No.1 LG

“jeong-do”Management

Creating valuefor customers

Respectinghuman dignity

32

overseas network

AsIA

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eURoPe – CentRAL AsIA

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noRtH AMeRICA

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oCeAnIA

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128, Yeoui-daero, Yeongdeungpo-gu, seoul 150-721 KoReATel 82-2-3773-1114 Fax 82-2-3773-5182 Homepage : www.lgicorp.com email : lgi@lgi.co.kr