Dear valued shareholders and customers, Allow me to begin by expressing my sincere gratitude for the unwavering support and trust you have given LG.

The economic environment in 2008 was very unstable. Fluctuations in oil and raw materials price along with the spillover of the global financial crisis caused a great deal of the uncertainty into the real economy. Despite increasing instability in the business environment and ever intensifying competition, LG was able to achieve consistent growth.

In 2008, LG Corp. recorded KRW 992.5 billion in operating revenue and KRW 957.9 billion in ordinary income. Although these figures (affected by the foreign currency translation losses of our electronics subsidiaries caused by the weak Korean won) represent somewhat of a decline compared to 2007, the actual business performance of most of our subsidiaries has improved during 2008. For example, LG Electronics and LG Chem posted the highest revenue and operating income ever in 2008.

2008 was also a significant year for bearing fruit in areas other than financial performance. Our mobile handset business was ranked a third place globally, by volume, thanks to outstanding product quality and sophisticated design that captivated customers' minds.

LG's medium-and large-sized batteries, a core component of the eco-friendly automobiles, also earned recognition for their distinctive technological strength. In the wireless and wired telecommunication services, we expanded the existing market paradigm by launching preemptive offerings in Internet and data-based services, and affirmed their possibility as future growth engines for LG's telecommunications business. Going forward, we will continue our relentless pursuit of maximum customer satisfaction and shareholder-centered management. Furthermore, we are committed to continue to expand our first-tier products and services to solidify the LG brand.

We anticipate that the impact of the global recession will spread broader and deeper in 2009. In particular, consumer spending, which has a direct effect on our businesses, is expected to contract severely. Knowing what potentially lies ahead, all of our LG subsidiaries stand ready to execute countermeasures dependent upon how the market conditions change. Rather than being complacent about the success we have accomplished to date, our entire organization stands prepared for the challenges we see ahead.

In addition, we will continue to drive innovations in customer value, and make unrelenting preparations for the future. In doing so, we hope to further develop into a company that realizes the greatest value for our shareholders. Guided by "outside the box" thinking and an emphasis on a higher level of innovation, we will strive to satisfy our customers, and touch their hearts on every level, including design, R&D, quality, and service. We are determined to offer our customers values that they will find compelling and irresistible. Investments to obtain proprietary core technologies and to identify new growth businesses will continue.

The ability of LG to maneuver through this downturn and even turn it into an opportunity rests its people and the culture within which they work. Among the key values within LG is trust with the organization and between co-workers. Given our founding management principle of "respecting human dignity," LG creates a culture of trust and cooperation whereby our staff can be creative and take on new challenges with a sense of ownership and teamwork based on mutual trust.

Dear valued shareholders and customers,

In closing, LG stands where it is today, after overcoming numerous obstacles for more than six decades, thanks to the trust and affection we have received from our shareholders and customers. Throughout this year, all of us at LG will put forward our best efforts, armed with determination, to exceed the expectation of our shareholders and customers. We appreciate your valuable support and encouragement, and we look forward to growing our relationship in the years to come.

Thank you.