Updated on Sept. 22, 2003

1. 2002 to 2003 Updated on Sept. 22, 2003

2. 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. Major Products & Brands History & Sales Breakdown Cosmetics 1947 Established as Lucky Chemical Industrial Co. 1954 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 • Skin Care • Color • Cosmetics • Functional • Cosmetics • Men’s Care Household Products • Toothpaste • Shampoo • Soap • Laundry • Detergent • Kitchen • Detergent • Fabric Softener 2002 Sales: KRW 1,102 bn* Household Products: 66% Cosmetics: 34% * The sales amounts are net of sales incentive expenses 1 / 11

3. Demerger With the demerger, management transparency and shareholder value will continue to increase. Structure Positive Effects Concentrate on core businesses Enhance management transparency Respond quickly to customer’s needs Old LG Chemical Electronic Materials Industrial Materials Petrochem Equity Investment Household Products & Cosmetics Biotech Rise in Corporate & Shareholder value Demerger (As of Aug. 2003) LGEI LG LGCI 【 Market Capitalization 】 500 + • Electronic Biz • Investments • Investments • Chemical Biz • Investments KRW 454 bn LG H&H 250 759p KOSPI LG Chem LG H&H LG Life Science 100 • Biotechnology • Petrochem • Industrial • Materials, etc. • Household • Cosmetics 2001 2003 2002 100 = Market Cap. on 25 Apr. 2001 KRW 186 bn / KOSPI 556 2 / 11

4. Corporate Structure 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. Organization Management/Shareholders BOD - 8 directors including 4 outside directors R & D Product/Design/Packaging Research CTRs • Management Standard • - EVA : ROIC - WACC (2002 : 11%) • TSR : Weighted Average Share Price Increase • (2002 : 25%) Production 4 plants & 4 overseas J/Vs Employees - 2,900 People Logistics 10 logistics centers (End of June 2003) Agents Discount Stores Department Stores Convenient Stores Direct Sales Door to Door Sales Shareholder Structure - LG, the holding company, is a major shareholder Supermarkets Specialty Shops (End of Aug. 2003) Consumers 3 / 11

5. 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. 1) Business Results & Targets Corporate Strategy (KRW bn) 108 (10.4%) 99 (8.9%) 80 (7.3%) Leading Home Care and Personal Care Company Devoted to the pursuit of beauty, dreams and the betterment of life Operating Income (Margin) 1,100 1,102 ▽0.2% 1,032 7% Enhance Market Leadership by (32%) (34%) (35%) Cosmetics • Restructuring • Strengthening brand competitiveness • Improving organizational competency (68%) (66%) Household Products (65%) 2001 2002 2003(e) 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). 4 / 11

6. Household Products Business 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. Business Environment Strategy Customer • Strengthening market leadership • Focus on brand, image and perceived quality • Greater consumer needs for high-functional products • Promotion becoming more important • Enhancing competitiveness in growing channels • Developing sustainable growth engines Competitor • Foreign: Expansion of M/S and product categories • Local: Focus on certain categories and • penetration into niche markets Category Sales Breakdown 24 27 【19 Categories】 Discount Stores 39 36 【6 Major Categories】 : 59% of Sales Agents Channel 37 37 • Continuous growth of discount stores • Expansion and diversification of online sales Direct Sales 2001 2002 5 / 11

7. Sales & M/S 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. Sales Note1) Market Share (KRW bn) (%) 49 20 17 Others 72 (9.7%) (2001) 66 (8.8%) L G 47 Aekyung 19 68 (10.0%) Pacific 19 Toothpaste (2002) Others Operating Income (Margin) 27 18 20 Others Aekyung 12 L G 28 Pacific 18 P&G 19 Unilever 15 753 Shampoo Others 735 3% 686 40 15 12 11 Others 7% L G 37 Pacific 16 Aekyung 10 Soap Unilever 14 Sales Others 36 27 21 Others L G 36 L G 37 CJ 22 Aekyung 27 Laundry Detergent Others 43 34 15 Others L G 44 Kitchen Detergent Aekyung 33 CJ 15 Others 31 47 16 Others L G 31 Fabric Softener Oxy 15 Pigeon 49 Others 2001 2002 2003(e) * Including inter-company transaction Note1) The sales amounts are net of sales incentive expenses(’01: KRW 28bn, ’02: KRW 34bn). 2002 financial report includes 2001 & 2002 special bonuses( KRW 4bn & 5bn respectively). 6 / 11

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

9. Sales 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 by Channel Sales Note1) (%) (KRW bn) 【LG H&H M/S 】 【 15% 】 【 16% 】 【 15% 】 40 (10.9%) 27 (7.1%) Export Home shopping E-channel, etc. Operating Income (Margin) Others 13 13 14 14 (3.9%) Old type 20 21 24 Premium Market New type 383 Department stores 366 358 5% ▽ 6% Sales 67 66 Discount stores 62 Mass Market Specialty shops 2001 2002 2003(e) 2000 2002 2001 * Including inter-company transactions Note1) The sales amounts are net of sales incentive expenses(’01: KRW 51bn, ’02: KRW 52bn). 2002 financial report includes 2001 & 2002 special bonuses( KRW 3bn & 3bn respectively). 8 / 11

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

11. Key Financials At the end of 2002, debt-to-equity ratio declined to 150%, a 28%p decrease from 2001. LG H&H plans to reduce the ratio to the 130% range by 2003. Borrowings & Interest Key Financials (KRW bn) (KRW bn) 2001 2002 2003(e) 2001 2002 2003(e) E B I T D A Interest Expenses EBITDA/Interest Expenses 112 9 12.3 127 12 10.7 678 435 407 173 271 89 150% 64% 703 428 404 164 300 89 135% 55% 135 21 6.4 647 414 414 205 233 89 178% 88% Assets (Fixed Assets) Liabilities (Borrowings) Shareholders’ Equity (Capital Stocks) Debt/Equity Borrowings/Equity 178% Debt/Equity (%) 150% 135% 2001* 2002 2003 Borrowings 205 Sales Gross Profit Operating Income Recurring Profit Net Profit E P S (KRW) R O A R O E 1,032 528 108 107 75 4,205 11.5% 32.0% 1,102 563 99 96 44 2,489 6.5% 16.3% 1,100 550 80 80 56 3,172 8.0% 18.8% 173 164 2001 2002 2003 (e) * Including pre-demerger 1Q results 10 / 11

12. Cash Flow Net Cash from business operating activities is expected to be KRW 12bn in 2003. It will primarily be allocated to maintaining a stable dividend pay-out ratio, enhancing market leadership and improving financial conditions. Cash Flow (KRW bn) * 2001 2002 2003(e) (Dividend) Cash Flow from Operations Net Income Depreciation Working Capital Dividend Others Capital Expenditure 87 56 21 10 - 25 28 37 44 29 -18 -18 21 38 52 56 31 -8 -27 4 45 (%) 40 30 20 10 Pay-out ratio 1,500 Dividend Per Share (KRW) ** 1,000 750 Dividend Yield 2000 2001 2002 * * * Net Cash Flow 84 20 12 * Excluding 1Q 2001 results ** Including disposal of assets (’01: KRW 13 bn, ’03: KRW 16 bn) * Pre demerger dividend of LG Chem * * Pay-out ratio excludes extraordinary loss Sustain Stable Dividend Pay-out Ratio Enhance Market Leadership Improve Financial Conditions 11 / 11

13. 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. www.lgcare.co.kr www.careshop.co.kr