Lg Market Share

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LG Electronics

November 2002


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As a note, this presentation was released as the dates shown and reflected management views as of these dates.

While reviewing this information, the data and information contain certain forward-looking statements that are

subject to known and unknown risks and uncertainties that may cause actual results to differ from those stated

or implied by such statements. These risks and uncertainties include, but are not limited to the risk factors noted

in the Companys Earnings Releases and the Companys filings with the Financial Supervisory Commission of

Korea. The Company assumes no obligation or responsibility to update the information provided in the

presentations in correspondence to their respective dates.


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Accomplishments to DateAccomplishments to Date


4/18

Business StructureBusiness Structure

LG Micron

LG Innotek

LG. Philips LCD

LG. Philips Displays

LGIBM PC

Overseas Subsidiaries

Air-Conditioner

Refrigerator

Washing Machine

Vacuum Cleaner

Cooking ApplianceOthers

LGE is in four

different

business lines

with two JVs

with Philips

Digital Display& Media& Media

Optical Storage

PC

Monitor

TV

Audio/Visual

Recording Media

PDP

Digital Display HomeAppliance

HomeAppliance

MobileHandset

MobileHandset

LG ElectronicsLG Electronics

LG Electronics Investment

(LGEI)

TelecomSystem

Wireless System

Switching

& Transmission

Data Network

TelecomSystem

CDMA handset

GSM handset

WLL handset


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AccomplishmentsAccomplishments

Now LGE is

reshaped and

more focused

and most of all,

has much

clearer direction

Demerger to focus on main business

Strong growth, high margin Home Appliance division

- CAGR from 1999 to 2002 : LGE 22% vs. Industry 4%

High growth in Handset division with growing market share

- CAGR from 2000 to 2002 : LGE 50% vs. Industry 1%

World top-class PDPmaker / Leader in Digital TVdevelopment

LG.Philips LCD ahead of competition in 5G TFT-LCD production

Globally securing a top-tier position in major products

(Optical storage, Monitor etc.)


6/18

Product Leadership in Key MarketsProduct Leadership in Key Markets

LGE has built up

its presence in

the global

market by taking

number one

position in many

product areas

Global Market Share in 2002(E) Korean Market Share

Air Conditioner *Air Conditioner *OpticalOptical

StorageStorage

11CRTCRT

No.1No.1No.1

15.4% 21.4% 27.0%

MonitorMonitorCDMACDMA

18.0%

TFTTFT--LCDLCD

2210.4%17.0%

336.4%

* Based on Package Air conditioner

Source: DisplaySearch, LSI, IDC, LGE


7/18

Performance HistoryPerformance History

Sales has grown

steadily despite

the economic

turmoil Sales(Unit : W tril.)

Sales : W18.4 ~ 18.5 tril.

(15% ~ 16% yoy growth)

Operating Profits : 6.4~6.5%

(more than 50% growth yoy)

Recurring Profits : Dramatic

improvement in equity method

accounts

(W902 bil. loss in 2001)

2002 Target

16.6

10.5

6.1

14.8

9.9

4.910.59.9

7.8

2.7

7.3

2.6

1998 1999 2000 2001

Export Domestic


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1.8 1.5 1.6

4.2

2

54.5

2.4

2

0.1

0.2

0.7

Strong sales

in US CDMA

2domestic

'01 1H '01 2H '02 1H '02 2H(E)

CDMA

export

GSM

Export

4.2

5.7

6.8

9

(unit: million units)Advance into

Europe and China

Achievement Outlook

Handset Performance and OutlookHandset Performance and Outlook

CDMA so far led the growth. GSM will be next growth driver

Full launching of EVDO and WCDMA market in Korea

CDMA : US market to move to color phones,

Demand growth in China and India Color phones to lead robust GSM sales

CDMA in US : Secured #1 supplier

position to major operator

Groundbreaking effort to GSM market launched LG Brand


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Global Market Share

LGE is now 6th in the global market with 2nd place in the CDMA handset market.

Europe, China, and India are next growth areas.

Global Handset Makers Status

Worldwide Handset M/S* Worldwide CDMA Handset M/S

2002 1H20012002 1H2001

1 Samsung 30.9%

2 LG 17.7%

3 Motorola 12.3%

4 Nokia 11.3%

5 Kyocera 10.6%

1 Samsung 23.3%

2 LG 18.9%

3 Motorola 17.3%

4 Kyocera 13.2%

5 Nokia 12.3%

1 Nokia 36.3%2 Motorola 16.5%

3 Samsung 10.1%

4 Siemens 8.8%

5 SEMC 5.8%

6 LG 3.6%7 Alcatel 3.2%

8 Kyocera 2.2%

9 Mitsubishi 2.1%

10 NEC 2.1%

1 Nokia 35.6%2 Motorola 14.9%

3 Samsung 7.3%

4 Siemens 7.3%

5 SEMC 7.1%

6 NEC 2.9%7 M itsubishi 2.9%

8 Panasonic 2.7%

9 Alcatel 2.6%

10 LG 2.5%

*Source : Strategy Analytics, August 02


10/18

2H Expectation - CDMA

Sequential drop in 4Q especially from US expected 87% in domestic market and 24% in export expected to be color phones

Color-Screen Sales Trend

Domestic

Export

0%

13%

24%

'02 2Q '02 3Q '02 4QE

0%

45%

69%

87%

'01

2Q

'01

4Q

'02

2Q

'02

4QE

0

1,9012,588

2,685

1,900

958

6461,065

1,100

1Q 2Q 3Q 4Q(E) 2002(E)

CDMA Performance in 2002

Export

Domestic

9.1M

3,8M

2.9M

3.2M3.8M

3.1M 12.9M


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2H Expectation - GSM

GSM business offers great opportunities for LGE to be in a global top-tier handsetmaker by 2005.

Product Leadership

-Export launch from selected hit products in Korea

-Maximize synergy between GSM and CDMAbusiness

Performance Overview

(Unit: thousand)

Technology leadership- Utilize multimedia technology from Display &

Media division

Enhancing Brand Power- Targeting mid to high market

- Utilize high brand power in Europe and China

Total 2.6M units in 2002

LGEs Strength

1Q 2Q 3Q 4Q(E)

260

480

750

1,100


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LGE as a top CDMA maker

LGE succeeded in Korea, a toughest test ground for new tech with fastidious customers.

LGE has outstanding competitiveness in ever-changing world handset market with its

Innovation, customization and product differentiation capability.

Market - Change in Game Rule LGEs Competitiveness

97~00 Scale Game - Moderate Quality

- Low Price

00 ~ Scale +

Exciting Products

- Excellent design

- Multi media

[ Service operators ]

[Handset customers]

Profit aggravation of service operators

Increasing desire for better design

and new tech

Rapid product development time

- Short product lead time of 8.5 months

- More diverse model portfolio vs. competitors

Vertical integration

- Ability to leverage product development of

Display and Media Tech divisions

Innovative and smart designs

Successful customization with major

operators


13/18

Going ForwardGoing Forward


14/18

Diversified Product PortfolioDiversified Product Portfolio

LGE will

continue to

move up to the

value chain by

allocating

resources into

future business

Product Life Cycle

Optical Storage

Handsets

Digital TV

PDP

OLED

Profitability

Home Appliances

Time


15/18

Balanced ContributionBalanced Contribution

Operating Profit Up to 3Q 20022001 Operating Profit Breakdown

Handset&

System

21%

Appliance

50%

Display&

Media

29%

Handset&

System

19%

Appliance

62%

Display&

Media

19%

More balanced

income from

each sector

projected

Major contributor

- GSM / CDMA handset

- TV LCD and PDP TV

- Optical Storage

- Other Premium Products

Major contributor

- Package Air conditioner

- Refrigerator

- Optical Storage

- TV

- CDMA handsets


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Stronger Balance SheetStronger Balance Sheet

Having strong

balance sheet is

the first priority

of LGE.

LG Electronics Debt (KRW trn)

4.94 3.6 3.1

118%

95%

128%

97%

50%

2000 2001 After Demerger 3Q 2002 2005E

Debt D/E Ratio

Level

A strong balance sheet is a prerequisite for a global player

For stable growth and investment, LGE will reduce current 97%

gearing level down to 50% level by 2005


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Key SummaryKey Summary

With strong growth in GSM and color phones, handsets has contributed to the

overall margin improvement

- GSM : Explosive growth (grew 877% YoY, 38% QoQ in 3Q02) with highly improved profitability

- Domestic : Product leadership (OLED, EV-DO Phones) / Full product line-up,

leading to market share expansion

Ongoing growth of Home Appliance in sales and profitability

- Sales has shown over 20% CAGR since 1998 with more than 10% op margin

- Premium products have driven the growth, maintaining market leadership

Level-up in PDP business with a possible turnaround in System business in 2003

- PDP : Visible demand growth with reliable yield improvement

- System : Better profitability from W-CMDA sales and business rationalization

Continuing cost innovation and restructuring to improve profitability

- Business rationalization in Monitor, PCB and Telecom System


18/18

Thank YouThank You

www.lge.com

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