LG Display (LPL)

8. Subsequent Events

Table of Contents

LG DISPLAY CO., LTD.

(Formerly, LG.Philips LCD Co., Ltd.)

AND SUBSIDIARIES

Consolidated Financial Statements

21. Subsequent Events

On January 1, 2008, the Company entered into a contract to acquire the Active Matrix-Organic Light Emitting Diode (“AM OLED”) business from LG Electronics Inc., its parent company, by a way of taking over the AM OLED business related inventories, intellectual property rights and employees.

On February 29, 2008, the shareholders of the Company approved the name change of the Controlling Company from LG.Philips LCD Co., Ltd. to LG Display Co., Ltd. during the 23rd annual general meeting of shareholders. The name change became effective on March 3, 2008.

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LG Display Co., Ltd. (formerly, LG.Philips LCD Co., Ltd.)

Notes to Consolidated Financial Statements—(Continued)

December 31, 2005, 2006 and 2007

On February 29, 2008, the shareholders of the Company approved the distribution of a cash dividend of KRW 750 per share of the Company to all shareholders of record as of December 31, 2007. Such cash dividend, amounting to a total dividend of KRW 268,362 billion, was distributed to the shareholders of the Company on March 21, 2008. These financial statements do not reflect this dividend payable, which will be accounted for in shareholders’ equity as an appropriation of retained earning in the fiscal year ending on December 31, 2008.

On February 4, 2008, the Board of Directors changed the trade name of the Controlling Company (LG.Philips LCD Co., Ltd.) to LG Display Co., Ltd. This change was ratified by the shareholders during the 23^rd shareholders’ meeting on February 29, 2008.

On March 12, 2008, Koninklijke Philips Electronics N. V. sold 24 million shares of the Company. Following this transaction, Koninklijke Philips Electronics N. V. has a 13.2% ownership interest in the Company.

On March 13, 2008, the Company entered into a license agreement with Eastman Kodak Company for a non-exclusive, non-transferable license under a patent relating to technology for OLED displays and modules. The agreement, which expires in December 2010, provides for a running royalty for each product the Company produce using the licensed technology. The agreement is subject to termination in the event of a material breach of the terms of the agreement.

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LG Display Co., Ltd. (formerly, LG.Philips LCD Co., Ltd.)

21. Subsequent Events

On January 16, 2007, the Board of Directors appointed Mr. Young Soo Kwon to replace Mr. Bon Joon Koo as the Joint Representative Director of the Company. This appointment has been ratified by the shareholders during the 22nd Shareholders’ Meeting held on February 28, 2007.

In February 2007, the Company and certain of its officers and directors have been named as defendants in a federal class action in the United States by the shareholders of the Company alleging violations of the U.S. Securities Exchange Act of 1934, as amended, by the Company and certain of its officers and directors in connection with possible anti-competitive activities in the LCD industry. The Company and the officers and directors intend to defend themselves vigorously in this matter.

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Table of Contents

LG. Philips LCD Co., Ltd.

Notes to Consolidated Financial Statements—(Continued)

December 31, 2004, 2005 and 2006

In February 2007, Anvik Corporation filed a patent infringement case against the Company, along with other LCD manufacturing companies, in connection with the usage of photo-masking equipments manufactured by Nikon Corporation.

On April 14, 2006, Positive Technologies, Inc. filed a complaint in the United States District Court for the Eastern District of Texas against, among others, several of our customers, including BenQ America Corp., Hitachi America Ltd., Panasonic Corp. of North America, Philips Electronics North America Corp. and Toshiba America, Inc., for alleged infringement of two of its patents relating to LCD displays. Positive Technologies, Inc. is seeking, among other things, damages for past infringement. On March 7, 2007, the United States District Court for the Eastern District of Texas granted our motion to intervene in the patent infringement case brought by Positive Technologies, Inc.

On March 8, 2007, AU Optronics Corp., filed counter-claim against the Company in the United States District Court for the Western District of Wisconsin to defend the claim which the Company brought against AU Optronics Corp. in Delaware Court in December 1, 2006.

On March 20, 2007, Chunghwa Picture Tubes and the Company stipulated to the dismissal of Chunghwa Picture Tubes’ infringement claim filed on January 10, 2005, as well as the dismissal of all pending claims and counter claims against each other without prejudice. On March 29, 2007, the United States District Court for the Central District of California dismissed the case without prejudice.

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Table of Contents

LG. Philips LCD Co., Ltd.

26. Subsequent Events

On January 16, 2007, the Board of Directors appointed Mr. Young Su Kwon to replace Mr. Bon Joon Koo as the Joint Representative Director of the Company. This appointment will be ratified by the shareholders during the 22nd Shareholders’ Meeting scheduled to be held on February 28, 2007.

In February 2007, the Company and certain of its officers and directors have been named as defendants in a federal class action in the United States by the shareholders of the Company alleging violations of the U.S. Securities Exchange Act of 1934, as amended, by the Company and certain of its officers and directors in connection with possible anti-competitive activities in the LCD industry. The Company and the officers and directors intend to defend themselves vigorously in this matter.

In February 2007, Anvik Corporation filed a patent infringement case against the Company, along with other LCD manufacturing companies, in connection with the usage of photo-masking equipments manufactured by Nikon Corporation.

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Table of Contents

The English translation of the report of independent accountants’ review of internal accounting control system is intended for reference only. The reader is advised to refer to the original report in Korean.

26. Subsequent Events

On January 16, 2007, the Board of Directors appointed Mr. Young Su Kwon to replace Mr. Bon Joon Koo as the Joint Representative Director of the Company. This appointment will be ratified by the shareholders during the 22nd Shareholders’ Meeting scheduled to be held on February 28, 2007.

In February 2007, the Company and certain of its officers and directors have been named as defendants in a federal class action in the United States by the shareholders of the Company alleging violations of the U.S. Securities Exchange Act of 1934, as amended, by the Company and certain of its officers and directors in connection with possible anti-competitive activities in the LCD industry. The Company and the officers and directors intend to defend themselves vigorously in this matter.

In February 2007, Anvik Corporation filed a patent infringement case against the Company, along with other LCD manufacturing companies, in connection with the usage of photo-masking equipments manufactured by Nikon Corporation.

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Table of Contents

The English translation of the report of independent accountants’ review of internal accounting control system is intended for reference only. The reader is advised to refer to the original report in Korean.