LG Chem, considering both size and performance, is the leading chemical company in Korea. It is the mother company of LG Group.

LG Chem is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high-value added plastics, and high performance industrial materials. It also expands its chemical expertise to high-tech materials for electronics such as rechargeable batteries and TFT-LCD display materials.

LG Chem's business is comprised of three major areas: chemicals and polymers, industrial materials, and information & electronic materials. It conducts global management through its manufacturing affiliates, research centers, and marketing branches in major countries around the world.

With annual sales of KRW 5.4 trillion and a global workforce of 10,000 employees, LG Chem plans to realize positive progress towards sustainable growth by consolidating its leadership position in the domestic market as well as by building leader businesses outside of Korea.

Established in 1947 as the first chemical company in Korea. It then produced Korea's first facial cream

50's ~ 60's <Entering the Chemical business>

1. Begins Korea's first plastic manufacturing business
2. Produces Korea's first toothpaste
3. Expands production of plastic related products to vinyl flooring and PVC pipe
4. Extends household products to synthetic detergent, and cosmetic & laundry soaps
5. Goes public and placed stocks on the market

70's~80's <Growth in Technology and Expansion>

1. Established Korea's first private R&D center
2. Makes great strides in high-tech areas such as polymer chemistry, specialty chemicals and genetic engineering
3. Enters into Engineering Plastics and Pharmaceutical business by focusing in biotechnology

90's~Current <Innovation and Spin-off>

1 .Discovers the world's first gemifloxacin quinolone antibiotics
2. Begins mass production of Korea's first Lithium-Ion batteries
3. Takes over Hyundai's PVC operation
4. Detached as an independent company from LG Chemical

LG Chem has been detached from LG Chemical Ltd. in April 1, 2001 to unlock long-term shareholder value and provide investors with investment opportunities in highly focused entities.

LG Chemical spun-off into LG Chem Investment (LGCI), LG Chem and LG Household & Healthcare.

* The Petrochemicals and Performance Polymers Business Units were combined on Jan 1, 2004

LG Chem's ambitious mid-to-long term strategy concentrates on strengthening its vertically integrated business structure. For its petrochemical and industrial materials business, LG Chem has plans to consolidate its foothold and position itself as a major player in main growing markets such as China and the U.S. by raising its product quality and cost competitiveness through enhanced R&D and marketing abilities.

For its Information & Electronic Materials business, LG Chem's core future business, the company plans to focus on rapid developments of new high-tech products and increasing capacities for its main products such as rechargeable batteries and display materials.

LG Chem has prioritized six products among its wide range of products, which have high possibilities of obtaining a leading position in the world. The six products are ABS (Acrylonitrile Butadiene Styrene), PVC (Polyvinyle Chloride), HI-MACS (Artificial Marble), surface materials such as High Gloss Sheets, polarizers, and rechargeable batteries.

LG Chem set goals of KRWon 10 trillion in sales and a 12% operating profit rate for 2005 as well as a KRWon 15 trillion in sales and a 13% operating profit rate for 2008.

LG Chem will become the 3rd largest chemical company in the world in terms of earning rates and the 3rd largest in Asia in terms of the sales amount and stock value by 2008.