LG Display (LPL)

Tax Exemptions

Under the Special Tax Treatment Control Law of Korea, beginning in August 1999 when we registered Philips Electronics’ investment in us until 2008, we were entitled to the following tax exemptions:

In 2008, we received a tax benefit of (Won)32.6 billion (US$25.8 million), or 3.0% of income before income taxes, as a result of Philips Electronics’ 14.59% weighted average ownership in us in 2008. 2008 was the last taxable year we were eligible to receive this income tax exemption. The loss of this tax exemption could negatively affect our results of operations.

Tax Exemptions

Under the Special Tax Treatment Control Law of Korea, we are entitled, beginning in August 1999 when we registered Philips Electronics’ investment in us, to the following tax exemptions:

In 2007, we received a tax benefit of (Won)23.6 billion (US$25.2 million), or 1.5% of income before income taxes, as a result of Philips Electronics’ 30.1% weighted average ownership in us in 2007. Until 2008, we will lose 0.1375% of the tax exemption benefit with respect to net income generated from our TFT-LCD business for each 1% reduction in Philips Electronics’ ownership in us, assuming that the income tax rate applicable to us is the same as that in 2007.

After 2008, we will no longer be eligible to receive this income tax exemption. Losses of portions of this tax exemption could negatively affect our results of operations.

Tax Exemptions

Under the Special Tax Treatment Control Law of Korea, we are entitled, beginning in August 1999 when we registered Philips Electronics’ investment in us, to the following tax exemptions:

In 2006, as we recorded a net loss, we did not receive an income tax benefit as a result of Philips Electronics’ 32.87% weighted average ownership in us in 2006. Until 2008, we will lose 0.1375% of the tax exemption benefit with respect to net income generated from our TFT-LCD business for each 1% reduction in Philips Electronics’ ownership in us, assuming that the income tax rate applicable to us is the same as that in 2006. After 2008, we will no longer be eligible to receive this income tax exemption. Losses of portions of this tax exemption could negatively affect our results of operations.

Tax Exemptions

Under the Special Tax Treatment Control Law of Korea, we are entitled, beginning in August 1999 when we registered Philips Electronics’ investment in us, to the following tax exemptions:

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In 2005, we received a tax benefit of (Won)35.1 billion (US$34.7 million), or 8.7% of income before income taxes, as a result of Philips Electronics’ 41.33% weighted average ownership in us before and after our follow-on offering. Until 2008, we will lose 0.137% of the tax exemption benefit with respect to income generated from our TFT-LCD business for each 1% reduction in Philips Electronics’ ownership in us, assuming that the income tax rate applicable to us is the same as that in 2005. After 2008, we will no longer be eligible to receive this income tax exemption. Losses of portions of this tax exemption could negatively affect our results of operations.

Tax Exemptions

Under the Special Tax Treatment Control Law of Korea, we are entitled, beginning in August 1999 when we registered Philips Electronics’ investment in us, to the following tax exemptions:

In 2004, we received a tax benefit of (Won)239.6 billion (US$231.5 million), or 13.8% of income before income taxes, as a result of Philips Electronics’ 47.48% weighted average ownership in us before and after our initial public offering. We will lose 0.27% of the tax exemption benefit for each 1% reduction in Philips Electronics’ ownership in us, assuming that the income tax rate and qualifying business exemption ratio applicable to us are the same as those in 2005. Losses of portions of this tax exemption could negatively affect our results of operations.