1. Honam Petrochemical Corp. Lotte Tower Bldg.,395-67 Shindaebang-dong,Dongjak-ku, Seoul, Korea. (ZIP: 156-012) Tel 82-2-829-4114 Fax 82-2-834-6070 2007. 08. 15

2. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. Company History 1 Established the Company HDPE, PP and MEG Plant R&D center 2nd HDPE plant 2nd PP plant Listed on the Korea Stock Market, 2nd MEG plant Naphtha Cracker and BTX plants 3rd MEG plant PET plant 3rd HDPE plant EOA plant MMA plant NCC and BTX Revamping, 3rd PP plant Power plant Acquired Hyundai Petrochemical With LG Chem. Acquired KP Chemical Established Honam Chemical Trading(SHANGHAI) Corp. Established Joint Venture with MRC (Daesan MMA) Acquired Jiaxing Honam Engineering Plastic Co., Ltd Established the Company HDPE, PP and MEG Plant R&D center 2nd HDPE plant 2nd PP plant Listed on the Korea Stock Market, 2nd MEG plant Naphtha Cracker and BTX plants 3rd MEG plant PET plant 3rd HDPE plant EOA plant MMA plant NCC and BTX Revamping, 3rd PP plant Power plant Acquired Hyundai Petrochemical With LG Chem. Acquired KP Chemical Established Honam Chemical Trading(SHANGHAI) Corp. Established Joint Venture with MRC (Daesan MMA) Acquired Jiaxing Honam Engineering Plastic Co., Ltd 1976. 3 1979. 12 1986. 6 1988. 4 1988. 11 1991. 5 1992. 4 1997. 6 1998. 8 1999. 6 2000. 3 2001. 6 2001. 11 2003. 5 2003. 6 2004. 11 2006. 7 2006. 9 2006. 10 1976. 3 1979. 12 1986. 6 1988. 4 1988. 11 1991. 5 1992. 4 1997. 6 1998. 8 1999. 6 2000. 3 2001. 6 2001. 11 2003. 5 2003. 6 2004. 11 2006. 7 2006. 9 2006. 10

3. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. Shareholders & Locations 2 Lotte Mulsan Co., Ltd. (Korea)33.6% (Korea)33.6% FreeFloating42.7%FreeFloating42.7% Hotel Lotte Co., Ltd. (Korea)13.6% (Korea)13.6% Lotte (Japan) 10.0% 10.0% Shareholders Lotte Daesan Petrochemical (Daesan Plant) Head Office (Seoul) R&D Center (Daejeon) Honam Petrochemical (Yeosu Plant) KP chemical (Ulsan Plant) Locations

4. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. Products & Capacity 3 Propylene (365,000) HDPE (370,000) Ethylene (720,000) Mixed C4 Pyrolysis Gasoline EO Naphtha Cracking Center (2,200,000) MEG (400,000) PET (70,000) PP (380,000) Compound Resin (40,000) EOA (30,000) MMA (50,000) Benzene (150,000) Toluene (78,000) Xylene (47,000) Honam Petrochemical

5. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. Sales Breakdown - Year 2007 (1H)  Honam is one of the most preferred suppliers in Asia Pacific based on the advanced manufacturing technology, aggressive marketing and R&D activities. 4 Sales by Distribution Channel Sales by Product Honam Petrochemical DOMESTIC73%DOMESTIC73% EXPORT27%EXPORT27% PP20%PP20% EOG18%EOG18% BTX15%BTX15% OLEFIN9%OLEFIN9% PET4%PET4% Etc.12%Etc.12% HDPE22%HDPE22%

6. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 5 ※ Naphtha price trends(C&F Japan) / Ethylene price trends(CFR N.E Asia) Market Situation Raw Material Price

7. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 6 ※ HDPE(Yarn/Injection) / PP(HOMO) price trends(C&F F.E. AISA)/ MEG price trends(Asia Contract Price) Market Situation Main Products Price

8. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 7 I/S B/S Financial Review Honam Petrochemical [Unit: Billion Won] 2007 (1H) 20062005 Sales1,1272,1812,113 Operating Profit 166255340 Recurring Profit 331532615 (Depreciation)4595113 EBITDA212350453 2007 (1H) 20062005 Assets3,3752,9982,791 Liabilities710558701 Equity2,6652,4402,090 Total Debt00200 Debt/Equity Ratio 27%23%34%

9. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 8 “HPC runs in the most stable financial structure among the Korean petrochemical companies.” Debt/Equity Ratio Net Debt [Unit: Billion Won] Honam Petrochemical Financial Review

10. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 9 Financials Affiliate Companies Lotte Daesan [Unit: Billion Won] I/S B/S Honam 100% Shareholders LDPE9%LDPE9% LLDPE10%LLDPE10% PP15%PP15% EOG12%EOG12%BD12%BD12% SM21%SM21% ETC21%ETC21% Sales by Product Year 2006 2007 (1H) 20062005 Sales9771,8641,788 Operating Profit263874 Recurring Profit334665 (Depreciation)144286279 EBITDA170324353 2007 (1H) 20062005 Assets1,5371,3541,450 Liabilities609454590 Equity928899860 Total Debt306210341 Debt/Equity Ratio66%51%69%

11. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 10 Financials [Unit: Billion Won] Affiliate Companies KP Chemical Honam 51.9% Shareholders Public 48.1% Sales by Product PPR29%PPR29% OX9%OX9% BZ5%BZ5% PTA31%PTA31% ETC18%ETC18% PIA7%PIA7% Year 2006 10 I/S B/S 2007 (1H) 20062005 Sales9721,6281,530 Operating Profit52-1776 Recurring Profit55588 (Depreciation)51102 EBITDA10386178 2007 (1H) 20062005 Assets1,0631,0791,113 Liabilities425481519 Equity638598595 Total Debt0016 Debt/Equity Ratio67%80%87%

12. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 11 Consolidated Financials [Unit: Billion Won] Affiliate Companies Consolidated Financials I/S B/S 20062005 Sales5,5975,325 Operating Profit410600 Recurring Profit551693 (Depreciation)385395 EBITDA795995 20062005 Assets4,1594,114 Liabilities1,4531,767 Equity2,7062,347 ※ Lotte Daesan, KP Chemical and 2 affiliate companies of KP Other Important Affiliates CompanyShare Sales / Net Profit (2006) Remark Daesan MMA 50.0%-  MMA/PMMA business  MRC 50% Seetec50.0% 362 / 9  Utility supply to Lotte Daesan  LG chem 50% Lotte E&C 32.8% 3,161 / 291  Construction company [Unit: Billion Won]

13. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. Expansion Plan 12 Plant (Product)New or Revamp Capacity, kta Mechanical Completion Date (Scheduled) ExistAddsFuture NCCRevamp EL : 650 PL : 325 +350 +175 1,000 500 2008. 2Q BDRevamp100+50150 BRU (Benzene)Revamp200+120320 MEGNew250+390640 SMRevamp330+1705002008. 1Q PPNew250+2505002008. 2Q LLDPERevamp160+1302902008. 2Q [ Lotte Daesan ] : Total 670 billion won [ Honam ] : Total 680 billion won Plant (Product) Investment Volume (Billion won) Capacity, kta Mechanical Completion Date (Scheduled) PC240652008. 4Q MMA/PMMA JV (50% share) 50 (total 200~250) MMA 90 PMMA 40 2009. 1H 2008. 2H QP JV Cracker, Reformer and downstream (30% share) about 390 (total 2,600) Ethylene 900 PP 700 SM 600 PS 220 2011. 2H ※ The plant remarked as ‘ Revamp ’ is planned to expand its existing capacity.

14. 湖南石油化學 ( 株 ) Honam Petrochemical Corp. 13 “Exploring New Horizons” 2014 1980 19952005 0.1bl $0.55bl 1 st Vision VITAL 21 VISION : Top Tier Chemical Company in ASIA Sales: $10 Billion Strategy Strengthen Existing Business Overseas Extension Develop New Business NEW VISION (2005~ 2014) NEW VISION (2005~ 2014) $5.5bl $10bl New Vision New Vision of Lotte Petrochemical Division