LG Display (LPL)

Recognition of Deferred Income Tax Assets

We recognize deferred income tax assets (net of valuation allowance) to the extent that, in the judgment of management, utilization of the related tax benefits before their expiration is more likely than not. Our ability to utilize the future tax benefits related to our deferred tax assets depends on many factors, including an assessment of our ability to generate taxable income, the overall industry outlook and the outlook for the Korean economy. We value our deferred income tax assets on an ongoing basis, and make valuation allowances if, in our assessment, current results suggest that it is more likely than not that a portion or all of our deferred income tax assets will not be realized before their expiration. We determined that no valuation allowance was required as of December 31, 2005 and as of December 31, 2007. Conversely, we have determined that valuation allowance was required as of December 31, 2006 based on forecasted expiration of tax and investment credits.

As of December 31, 2007, we had (Won)495.8 billion (US$529.8 million) in net deferred income tax assets, including unused investment tax credits of (Won)403.7 billion (US$431.4 million), which may be used to reduce tax payable through 2012.

Recognition of Deferred Income Tax Assets

We recognize deferred income tax assets (net of valuation allowance) to the extent that, in the judgment of management, utilization of the related tax benefits before their expiration is more likely than not. Our ability to utilize the future tax benefits related to our deferred tax assets depends on many factors, including an assessment of our ability to generate taxable income, the overall

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industry outlook and the outlook for the Korean economy. We value our deferred income tax assets on an ongoing basis, and make valuation allowances if, in our assessment, current results suggest that it is more likely than not that a portion or all of our deferred income tax assets will not be realized before their expiration. We determined that no valuation allowance was required as of December 31, 2004 and 2005. Conversely, we have determined that valuation allowance was required as of December 31, 2006.

As of December 31, 2006, we had (Won)610.1 billion (US$656.0 million) in net deferred income tax assets, including unused investment tax credits of (Won)436.5 billion (US$469.3 million), of which (Won)159.5 billion (US$171.5 million) consists of unrealizable tax credits related to deferred tax assets and (Won)277.0 billion (US$297.8 million) may be used to reduce tax payable through 2011.

Recognition of Deferred Income Tax Assets

We recognize deferred income tax assets (net of valuation allowance) to the extent that, in the judgment of management, utilization of the related tax benefits before their expiration is more likely than not. Our ability to utilize the future tax benefits related to our deferred tax assets depends on many factors, including an assessment of our ability to generate taxable income, the overall industry outlook and the outlook for the Korean economy. We value our deferred income tax assets on an ongoing basis, and make valuation allowances if, in our assessment, current results suggest that it is more likely than not that a portion or all of our deferred income tax assets will not be realized before their expiration. We have determined that no valuation allowance was required as of December 31, 2003, 2004 and 2005.

As of December 31, 2005, we had (Won)362.9 billion (US$359.3 million) in net deferred income tax assets, including unused investment tax credits of (Won)293.0 billion (US$290.1 million) that may be used to offset taxable income through 2010.

Recognition of Deferred Income Tax Assets

We recognize deferred income tax assets (net of valuation allowance) to the extent that, in the judgment of management, utilization of the related tax benefits before their expiration is more likely than not. Our ability to utilize the future tax benefits related to our deferred tax assets depends on many factors, including an assessment

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of our ability to generate taxable income, the overall industry outlook and the outlook for the Korean economy. We value our deferred income tax assets on an ongoing basis, and make valuation allowances if, in our assessment, current results suggest that it is more likely than not that a portion or all of our deferred income tax assets will not be realized before their expiration. We have determined that no valuation allowance was required as of December 31, 2002, 2003 and 2004.

As of December 31, 2004, we had (Won)186.2 billion (US$179.9 million) in net deferred income tax assets, including unused investment tax credits of (Won)137.8 billion (US$133.1 million) that may be used to offset taxable income through 2009.