2003 1H Results

Sales and Operating Income Due to the slowdown in domestic consumption and intense competition, sales decreased by 2% and operating income by 34% year-on-year. Sales (KRW bn) ’ 02 1H ’ 03 1H ▽ 2% Cosmetics Household Products 64% 66% 36% 34% Operating Income ’ 02 1H ’ 03 1H 60% 70% 40% 30% ▽ 34% 1 Cosmetics Household Products (KRW bn)

Segment Results Sales of Household Products was similar to last year with a decrease in margin. Cosmetics showed negative growth both in sales and profits year-on-year. Household Products Sales Gross Profit Operating Income ’ 02 1H ’ 03 1H 40.9% 39.6% 9.7% 7.4% changes 1.0% ▽ 2.1% ▽ 22.4% ▽ 1.3%p ▽ 2.3%p 2 (KRW bn) Gross Margin Operating Margin Cosmetics % 71.7% 11.5% 6.2% ▽ 9.1% ▽ 8.6% ▽ 51.1% ▲ 0.4%p ▽ 5.3%p Sales Gross Profit Operating Income ’ 02 1H ’ 03 1H changes Gross Margin Operating Margin (KRW bn)

Financial Highlights B/S Summary (KRW bn) P/L Summary (KRW bn) Assets (Fixed) Liabilities (Long-term) Shareholders ’ Equity Debt-to-Equity Net Debt-to-Equity % 53% % 50% FY ’ 02 ’ 03 1H Borrowings (Net Borrowings) (144.8) Sales (Cost of Sales) Gross Profit (SG & A) Operating Income Recurring Profit (Extraordinary Loss) Net Profit ’ 02 1H ’ 03 1H % 50.5% 10.5% 7.1% (135.9) 3 In spite of the lower-than-expected business results and the substantial amount of dividend payout for FY ‘ 02, the debt-to-equity ratio has remained flat since end-FY ’ 02. However, profitability was negatively affected by a decrease in sales and increase in costs. Gross Margin Operating Margin

Quarterly Results Sales Gross Profit Operating Income Total ’02 1Q2Q’03 1Q2Q 4 Household Products Cosmetics (KRW bn) Sales Gross Profit Operating Income Sales Gross Profit Operating Income 1H 0.8% △ 1.5% △ 25.6% 4.2% 3.0% △ 7.9% △ 10.8% △ 8.5% △ 54.6% △ 4.2% △ 8.0% △ 44.6% △ 2.3% △ 7.5% △ 42.8% △ 7.4% △ 8.7% △ 46.7% △ 1.6% △ 4.7% △ 33.8% 1.0% △ 2.1% △ 22.4% △ 9.1% △ 8.6% △ 51.1% 1Q2Q 1H y-o-y

Earning Target for Due to 1 st half results falling below target and slowing growth of the domestic economy, LG H&H revised sales and recurring profit targets for Sales Recurring Profit (KRW bn) * Any information regarding the earning forecast for 2003 provided before Aug 1, 2003 should be revised to reflect the above change. 1,170 Previous TargetRevised Target 110 Previous TargetRevised Target 1, ▽ 6% ▽ 27% (KRW bn)

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.