Updated on Sept. 22, to 2003

Corporate Overview Founded in 1947, LG Household & Health Care(“LG H&H”) has been the basis of growth for LG Chemical and LG Group. Since its demerger from LG Chemical in 2001, LG H&H has become the leading household and health care company in Korea. 1 / 11 Major Products & Brands History & Sales Breakdown Cosmetics: 34% Household Products: 66% Toothpaste Shampoo Soap Laundry Detergent Kitchen Detergent Fabric Softener 2002 Sales: KRW 1,102 bn* Skin Care Color Cosmetics Functional Cosmetics Men’s Care Household Products 1947 Established as Lucky Chemical Industrial Co Produced Korea’s first toothpaste “Lucky” 1969 IPO 1974 Changed corporate name to “Lucky” 1979 Established Lucky R&D Center 1980 Established Cheongju Plant 1984 Launched cosmetics business 1995 Changed corporate name to “LG Chemical” 2001 Demerged from LG Chemical and established LG Household & Health Care * The sales amounts are net of sales incentive expenses Cosmetics

Demerger With the demerger, management transparency and shareholder value will continue to increase. 2 / 11 Structure Household Cosmetics Petrochem Industrial Materials, etc. Biotechnology LG Life Science LG H&H Concentrate on core businesses Enhance management transparency Respond quickly to customer’s needs Rise in Corporate & Shareholder value Positive Effects KOSPI LG Chem = Market Cap. on 25 Apr KRW 186 bn / KOSPI 556 KRW 454 bn 759p Equity Investment Old LG Chemical Petrochem Industrial Materials Household Products & Cosmetics Biotech Electronic Materials Demerger 2003 (As of Aug. 2003) LGCI + LGEI Chemical Biz Investments Electronic Biz Investments LG Investments LG H&H 【 Market Capitalization 】 500

Corporate Structure (End of June 2003) R & D Product/Design/Packaging Research CTRs Production 4 plants & 4 overseas J/Vs Consumers Agents Direct Sales Door to Door Sales Direct Sales Door to Door Sales Supermarkets Specialty Shops Supermarkets Specialty Shops Discount Stores Department Stores Convenient Stores Discount Stores Department Stores Convenient Stores Utilizing EVA & TSR as management standards, 2,900 employees are working together to enhance corporate value. In addition, advanced R&D, production, logistics & sales network are contributing to our competitiveness. 3 / 11 Organization Management/Shareholders BOD - 8 directors including 4 outside directors Management Standard - EVA : ROIC - WACC (2002 : 11%) - TSR : Weighted Average Share Price Increase (2002 : 25%) Employees - 2,900 People Shareholder Structure - LG, the holding company, is a major shareholder Logistics 10 logistics centers (End of Aug. 2003)

Corporate Strategy, Business Results & Targets As a leading home care and personal care company, LG H&H will enhance market leadership by restructuring, strengthening brand competitiveness and improving organizational competency. 4 / 11 (65%) (35%) (66%) (34%) (e) 108 (10.4%) 1,032 1,102 (KRW bn) Restructuring Strengthening brand competitiveness Improving organizational competency ▽ 0.2% 1) 7% 99 (8.9%) Corporate Strategy Business Results & Targets Enhance Market Leadership by Household Products Cosmetics Operating Income (Margin) Note1) Sales amounts are net of sales incentive expenses(’01: KRW 79bn, ’02: KRW 86bn). The 2002 financial report includes 2001 & 2002 special bonuses( KRW 8bn & 9bn respectively). Leading Home Care and Personal Care Company Devoted to the pursuit of beauty, dreams and the betterment of life (68%) (32%) 80 (7.3%) 1,100

5 / 11 Strengthening market leadership Customer Focus on brand, image and perceived quality Greater consumer needs for high-functional products Promotion becoming more important Channel Continuous growth of discount stores Expansion and diversification of online sales Competitor Foreign: Expansion of M/S and product categories Local: Focus on certain categories and penetration into niche markets Business Strategy Household Products Business Environment Enhancing competitiveness in growing channels Developing sustainable growth engines Strategy Changes in consumer preferences, more intense competition and channel reshuffling are expected. However, LG H&H will enhance market leadership in major product categories and develop new growth engines for the future. 【 19 Categories 】 【 6 Major Categories 】 : 59% of Sales Discount Stores Agents Direct Sales Sales Breakdown Category

Sales Operating Income (Margin) L G 36 Toothpaste L G 47 Aekyung 19 Others Pacific 19 Shampoo L G 28 P&G 19 Soap L G 37 Unilever 14 Others Pacific 16 Laundry Detergent Aekyung 27 CJ 22 Others Kitchen Detergent L G 44 Others CJ 15 Aekyung 33 Fabric Softener L G 31 Pigeon 49 Oxy 15 Others L G (e) 68 (10.0%) 735 Sales of KRW 735bn and operating profit of KRW 72bn was reached in 2002, an increase of 7% and 5% year-on-year respectively. Despite intense competition, LG H&H has maintained market leadership Others Others Others Others Others 15 (2001) 6 / Others 16 Sales & M/S (%) Market Share Sales (KRW bn) Pacific 18 7% Note1) * Including inter-company transaction 72 (9.7%) Note1) The sales amounts are net of sales incentive expenses(’01: KRW 28bn, ’02: KRW 34bn) financial report includes 2001 & 2002 special bonuses( KRW 4bn & 5bn respectively). Aekyung 10 Others Unilever 15 Aekyung 12 3% (8.8%) (2002)

7 / 11 Building “Power Brands” Different Strategy for Each Channel R&D and Design Capability Enhancement Greater consumer preference for premium & foreign brands Diversification of products and brands according to consumer needs Larger and more modernized specialty shops Growth of discount stores and department stores More intense competition in door-to-door sales Foreign: New entry and penetration into diverse channels Local: Major players are positioned in multiple channels Minor players are mainly niche players Cosmetics Business Strategy Changes in distribution channels and aggressive marketing from foreign and local competitors are expected. LG H&H will secure growth momentum by building “Power Brands” and establishing a different strategy for each distribution channel. Business Environment Strategy Customer Channel Competitor Specialty Shops & Discount Stores - Volume and profit driver - Aggressive marketing and channel development Department Stores - Strategic development as a premium channel New door-to-door channel - Change of business model and restructuring Old door-to-door channel - Business model improvements and gradual expansion

40 (10.9%) 8 / 11 Sales (e) Sales by Channel (%) 5% New type Department stores Discount stores Specialty shops Old type Others Premium Market Mass Market 【 LG H&H M/S 】【 15% 】【 16% 】【 15% 】 Sales (KRW bn) Note1) * Including inter-company transactions 27 (7.1%) Sales of KRW 383bn and operating profit of KRW 27bn was reached in 2002, a growth of 5% and ▽ 32% year-on-year respectively. Market share declined slightly. Sales Operating Income (Margin) Note1) The sales amounts are net of sales incentive expenses(’01: KRW 51bn, ’02: KRW 52bn) financial report includes 2001 & 2002 special bonuses( KRW 3bn & 3bn respectively). Export Home shopping E-channel, etc ▽ 6% (3.9%)

Overseas Business Based on localization strategy, LG H&H actively pursues overseas business with particular emphasis on JVs in China and Southeast Asia. 9 / 11 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■  Country/Est. : China / 1996  Business : Toothpaste Production  ’03 Sales Target: U$ 12 mn LG H&H R&D Shanghai  Country/Est. : China / 1998  Business : Natural Materials R&D Hangzhou LG Cosmetics  Country/Est. : China / 1994  Business : Cosmetics Production  ’03 Sales Target: U$ 20 mn Beijing LG Household Chemical LG Vina Cosmetics LG HAI  Country/Est. : Vietnam / 1997  Business : Cosmetics Production  ’03 Sales Target : U$ 19 mn  Country/Est. : U.S.A. / 1990  Business : Toothpaste/Detergent/ Cosmetics Sales LG H&H International Trading  Country/Est. : China / 2000  Business : Shampoo/Soap/ Cosmetics etc. ■ ■ ■ ■ ■ ■ ■ Cognis Rika  Country/Est. : Malaysia / 1989  Business : Fatty Alcohol Production Production JV (4) Sales Subsidiary (2) R&D Subsidiary (1)

Key Financials Assets (Fixed Assets) Liabilities (Borrowings) Shareholders’ Equity (Capital Stocks) Debt/Equity Borrowings/Equity Sales Gross Profit Operating Income Recurring Profit Net Profit E P S (KRW) R O A R O E % 64% % 55% 1, , % 16.3% (e) % 88% 1, , % 32.0% 2001* E B I T D A Interest Expenses EBITDA/Interest Expenses (e) (e) 178% Debt/Equity (%) Borrowings 1, , % 18.8% (KRW bn) 10 / Borrowings & Interest Key Financials (KRW bn) * Including pre-demerger 1Q results % 135% At the end of 2002, debt-to-equity ratio declined to 150%, a 28%p decrease from LG H&H plans to reduce the ratio to the 130% range by 2003.

Cash Flow (e) Net Cash Flow Cash Flow from Operations Net Income Depreciation Working Capital Dividend Others Capital Expenditure * ** * Excluding 1Q 2001 results ** Including disposal of assets (’01: KRW 13 bn, ’03: KRW 16 bn) Net Cash from business operating activities is expected to be KRW 12bn in It will primarily be allocated to maintaining a stable dividend pay-out ratio, enhancing market leadership and improving financial conditions. 11 / 11 Cash Flow (KRW bn) Sustain Stable Dividend Pay-out Ratio Enhance Market Leadership Improve Financial Conditions (Dividend) (%) Pay-out ratio Dividend Per Share (KRW) Dividend Yield * Pre demerger dividend of LG Chem * * Pay-out ratio excludes extraordinary loss 750 1,000 1,500 ***

Thank you! This presentation contains forward looking statements which are based on management’s assumptions and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in this presentation. Potential risks and uncertainties include, but are limited to, such factors as general economic conditions, foreign exchange fluctuations, and any change in the relevant laws and regulations.