Dear valued shareholders and customers: 2007 was a very meaningful year for us, in large part because the customer value centered management that we had been carrying forward inally began to bear fruit. This happened even in the midst of extremely dificult conditions both at home and abroad including appreciation of Korean Won and high oil prices.

Powered by dramatically differentiated designs that captured the imagination of the buying public, LG Electronics recorded the largest-ever earnings from its mobile handset business, while LG Display fared well on the back of ceaseless cost reductions. LG Chem and LG Household & Health Care also did extremely well, posting historically-high revenues. Their success was led by the Petrochemicals and Information & Electronics division, and growing sales of premium quality, environmentally friendly products based on traditional herbal medicines. In the telecommunications and services business, LG TeleCom and LG Powercomm had attracted 7.81 million and 1.72 million subscribers, respectively, by the end of the year. This lowed from their endeavors to augment customer values despite such adverse circumstances as slow market growth and constantly intensifying competition.

Thanks to these extremely favorable results by its subsidiaries, LG Corp. realized largest-ever operating revenues since its inception as a holding company KRW 1 trillion won. Ordinary income amounted to KRW 957.9 billion won at year-end, representing an impressive increase of KRW 549.0 billion from the previous year. Just as gratifyingly, our investors continued showing their unstinted trust in the company, primarily due to our efforts to improve our corporate governance and make our management even more transparent.

Our market capitalization jumped by 134% year-on-year to reach approximately KRW 12.2 trillion at the end of 2007, outperforming KOSPI (Korea Composite Stock Price Index) by more than three times. Instead of resting on these laurels, however, we intend to continue emphasizing the creation of differentiated customer values and the need for and importance of market- friendly management that remains faithful to traditional values. Our ultimate goal is to grow into a top-tier enterprise that earns the praise and recognition of its many valued shareholders and customers.

In 2008, we will continue providing the public with a full range of differentiated products and gold-standard service. This goal will be backed by reinforced core capabilities in such areas as R&D and design and an increased dedication to discovering what customers really want. We will also make exhaustive preparations for the future by developing and promoting new businesses that will lay the groundwork for LG¡¯s continued success over the next 100 years. Future change can only come about as the result of such ¡°outside-the-box¡± modes of thinking.

Last, but certainly not least, we will build LG into a world-class organization that can generate sustainable results in the face of any and all dificulties. To this end, we will create an organizational culture that combines innovative thinking with integrity, wisdom, and vitality in short, a company that welcomes both challenge and change. LG has grown into a world-class enterprise thanks to the trust and support of its shareholders and customers. Although we do not expect our operating environment to be very favorable this year, we will make every effort to achieve our goals and deliver on our promises. I look forward to you unwavering interest and support.

Thank you.