1. March 19, 2002 Seyong Ro Vice President, New Service Development Division Wireless Internet, Today & Tomorrow

2. 1/18 Table of Content 1. Korean Market 2. Our Strategy - Openness - Multimedia Platform 3. m-Commerce Initiatives

3. 2/18 Source: OECD (March ’00) 1. Korean Market Light speed growth both in internet & wireless

4. 3/18 1)Portion of non-voice revenue among total wireless revenue(1H ‘01) 2)Includes i-SMS access # of wireless subscribers (000) # of wireless web access (000) % of wireless data revenue 1) Japan67,537 49,438 (73.2%)16% (DoCoMo) Korea29,235 24,284 (83.1%) 2) 11% (LGT) In wireless, Korea soon to become more than an “another i-mode” miracle (As of Jan ‘02) Comparison with Japan

5. 4/18 357 P2P SMS Others 2000 2001 Wireless Data Revenue # of WAP Phones WAP Phone Penetration Active Users* (40%) (100 Million Won) (% to total subs.) Striving to excel in wireless data Wireless Internet 432 74 511 221 257 62% ↑ 172 650 68% ↑ 54% 197% ↑ LGT Wireless Data Performance 48 100% 1,300 68% 1,900 2000 2001 2000 2001 3,190 ◀ (Thousand) * Subscribers who access to wireless internet at least once per month

6. 5/18 Reason for NOT using (%) No need 20% Difficult to use 3% Not aware 13% No handset 29% Expensive 30% Nothing attractive 3% Reason for STOP using (%) Expensive 49% No need 14% Slow 17% Others 1% Nothing attractive 5% Unstable connection 11% No fun 3% However, current wireless internet services are not enough to satisfy mass customers. Source: Yonsei University Research (Aug. ’01)

7. 6/18 Even for early adopters, most of the wireless internet services are not yet positioned as killer services in everyday life. Event of Use (%) Revenue by Contents (%, Jan. ‘02) 12% 1% 2% 3% 4% 5% 6% 27% 39% Others Other Info. needed Stock Info. needed In vehicle Lunch time Sleepless Frequently Urgent e-mail During break When nothing else to do Others Stocks/Banking Chatting/Community Entertainment Ring tones & Character D/L Mail & Messaging 39 13 11 7 5 6 LBS/Traffic Games 13 6 Source: Yonsei University Research (Aug. ’01), LGT Analysis

8. 7/18 EVDV So far, so good, Explosive wireless growth Dot-com fever Aggressive marketing by carriers But how long will it last ? Time What does it take to cross the chasm ? Wireless Internet IS95A/B1X, EVDO

9. 8/18 2. Our Strategy Multimedia Platform Openness & Standard Enhanced Wireless Internet Platform Handset-independent Client Software Java based Direct path to any URL Open Portal / Menu Open Access (IWF*) Support Personal / Unofficial Sites - No longer a “Walled Garden”, but “Traffic Maximization” - Focus on Multimedia Platform * IWF (Inter Working Function)

10. 9/18 LGT Subs. LGT-NW LGT-GW Yahoo Daum LGT Subs. LGT-NW LGT-GW ez-i Contents Provider Open Access Open Portal Allow access to LGT IWF Competition between G/W owners Allow access to LGT G/W Competition between Portal owners ez-i Yahoo LGT Subs. LGT-NW LGT-GW EXAMPLE DACOM-GW Megapass Yahoo Daum Chollian Walled Garden Chollian KT-GW Our Strategy – Breaking the walls ez-i - Open portal already in place (Daum, Chollian, Yahoo, etc) - Open access tested with Dacom. Soon to be opened to MISPs and commercialized (Q1 ’02)

11. 10/18 Multimedia will be a next big thing along with evolution of wireless network Our Strategy – Enhanced Multimedia Platform Mobile Multimedia Potential Customer Needs A little bit of Proof Graphic/Multimedia UI Video On Demand Audio On Demand Multimedia Messaging Mobile TV … 95 A/B CDMA 2000-1X 230% (Wireless Internet ARPU*, Index) 100 330 * Jan. ’02 result

12. 11/18 Content Provider Ease of contents sourcing Ease of handset supply Increase in wireless data usage Carrier User Open environment - Ease of development - Less resource required - Time to market Fun @ low-cost Variety of attractive contents Improved user interface (GUI) Java is a possible win-win solution for users & industry participants

13. 12/18 Q3Q4 20012002 Q1Q23QQ4 2000 Q2Q1Q4 Kitty-hawk MIDP Enhanced WI Platform (JINOS TM ) Platform Java WAP browser Browser UP WAP browser LGT Wireless Internet Platform Roadmap

14. 13/18 Java VM Advanced Architecture A platform fully integrated into user handsets Passed TCK* test & supports International Standard (J2ME CLDC MIDP) Developed by LG Telecom & Veloxsoft Phone HW WAPSMSPIMS Other … Apps Main UI Phone HW Phone OS Java VM WAP Java Applets SMSPIMS Other … Apps Main UI Phone OS Java-based SW environment Full integration of Java into handset Dynamic upgrade capability LGT’s New Platform Architecture Traditional Architecture Java as one of the native applications Limited access to phone features Most applications remain difficult to port * TCK (Technology Compatibility Kit)

15. 14/18 - Optimized run-time environment for any java applications/contents - Nearly everything is DOWNLOADABLE !!! (skin, browser, MMS player, game, any operators’ standard UI, PIMS, etc…) MIDP KVM & CLDC H/W Specific Device Drivers Hardware OS, Protocols, Standards, … LGT Profile Common H/W Device Drivers Mobile SUITS Profile Native Application/API Mobile SUITS Device Driver Standard Java Application Java Runtime Environment Native Software Layer Device Driver Layer Main UI WAP Browser GamesPIMS Handset Manufacturer End- User LGT & Third Party Contents Provider OTA Download OTA Download OTA* Download Why New Platform ? * OTA (Over The Air)

16. 15/18 Java Contents - Examples OKUP   1. Game 2. Comics 3. Novels 4. E-Mail/News 5. Maps 6. Instant Messenger 7. Notice Friendly UI* & Greater fun * UI (User Interface)

17. 16/18 Java Economics User Improved economics for users & carrier Source: LGT simulation 38% KRW 53 Java Mail WAP Mail KRW 33 LG TeleCom 83% KRW 89 Java Mail KRW 15 WAP Mail - Affordable Price (Game example). StandaloneDaily Use$0.2 ~ 0.4 Monthly$1.5 ~ 2.3 Ownership$2.3 ~ 3.8. Network(MUG)Monthly$0.8 ~ 2.3 - Improved Economics (Mail example). Reading a mail (300 characters). Writing/Sending a mail (20 characters) 76% Average Wireless internet User Active Java User $2.9 $5.1 Higher Data ARPU

18. 17/18 mFinance mPayment News e-mail Game LBS Downloads …. RF Proximity Payment (ez Pass) On-Line Payment Vending Machine M Plus Card P/G 1 IrDA Payment One-Chip (UIM) e-Cash Integrated billing Credit Card EBPP 2 … 1: Payment Gateway 2: Electronic Bill Presentment and Payment 3: Person to Person mMarketplace Stock Banking P2P 3 PFMS Asset Managmt … Ticketing Shopping Auction Price Comparison Advertisement Coupon …… Currently running To be launched in Q1’ 02 mInfortainment 3. m-Commerce Initiatives Infotainment and Marketplace seen as in traditional portal business. New business development focuses on “Mobile Payment” area.

19. 18/18 2000 ~ 2001 2002 1H2H 2003~ Payment Service Payment Infra CAT (Partnership) Contact Utilizing current handsets (offline/online/mobile) Other Infra WPKI (Dacom Partnership) Khai MembershipCoupon Business Authentication System Barcode server UIM m wallet (server) Combi (Contact + contactless) Traffic Card On-Line Payment M Plus Card Vending Machine IrDA Phone Offline oriented, online/mobile capable Mobile ad media rep. Ad server 2002 m-Payment Roadmap M-P/G System

20. www.lgtel.co.kr Thank you