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Organization and Nature of Business LG Display Co., Ltd. and Its

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Organization and Nature of Business LG Display Co., Ltd. and Its Organization and Nature of Business 12 Months Ended Organization and Nature of Business (Accumulated Other Comprehensive Income) Dec. 31, 2009 KRW (?) Organization and Nature of Business 1. Organization and Nature of Business LG Display Co., Ltd. and its subsidiaries’ principal activities are the manufacture and supply of Thin Film Transistor Liquid Crystal Displays (“TFT-LCD”) to Original Equipment Manufacturers (“OEMs”) and multinational corporations. The accompanying consolidated financial statements include the accounts of LG Display Co., Ltd. (“LGD” or the “Controlling Company”) and its consolidated subsidiaries (hereinafter collectively referred to as the “Company”). LG Display Co., Ltd. was incorporated in 1985 in the Republic of Korea under the original name of LG Soft, Ltd. On February 29, 2008, the Controlling Company changed its name from LG.Philips LCD Co., Ltd. to LG Display Co., Ltd. upon the approval of shareholders at the general shareholders’ meeting on the same date as a result of the decrease in Koninklijke Philips Electronics N.V. (“Philips”)’s share interest in the Controlling Company and the possibility of its business expansion to Organic Light Emitting Diode (“OLED”) and Flexible Display products. On March 16, 2009, Philips sold its remaining 13.20% share interest in the Controlling Company. Consequently, Philips no longer has an equity interest and therefore is no longer a principal owner of the Company. As of December 31, 2009, the Controlling Company’s shareholders are as follows: Percentage of Number of Ownership Shares (%) LG Electronics Inc. 135,625,000 37.90 Others 222,190,700 62.10 357,815,700 100.00 The Controlling Company’s subsidiaries as of December 31, 2009 are as follows: Subsidiaries Country of Percentage of Ownership (%) Incorporation 2007 2008 2009 LG Display America, Inc. US 100 100 100 LG Display Japan Co., Ltd. Japan 100 100 100 LG Display Germany GmbH Germany 100 100 100 LG Display Taiwan Co., Ltd. Taiwan 100 100 100 LG Display Nanjing Co., Ltd. China 100 100 100 LG Display Shanghai Co., Ltd. China 100 100 100 LG Display Poland Sp. zo.o. Poland 80 80 80 LG Display Guangzhou Co., Ltd. China 100 84 89 LG Display Shenzhen Co., Ltd. China 100 100 100 LG Display Singapore Pte. Ltd. Singapore — — 100 LG Electronics (Nanjing) Plasma Co., Ltd. China — — 100 LG Display Hong Kong Co., Ltd., a consolidated subsidiary in 2008, was liquidated in November 2009. LG Display Singapore Pte. Ltd. was incorporated in Singapore on January 12, 2009, to sell TFT-LCD products. In July 2009, the Controlling Company entered into a stock purchase agreement with LG Electronics Inc. and LG Electronics (China) Co., Ltd. for the acquisition of the shares of LG Electronics (Nanjing) Plasma Co., Ltd. in order to expand cell back-end process to module production. In accordance with the agreement, the Controlling Company acquired all of the shares of LG Electronics (Nanjing) Plasma Co., Ltd. at (Won)3,503 million in December 2009. In December 2007, Toshiba Corporation (“Toshiba”) acquired a 20% interest in LG Display Poland Sp. zo.o. (“LG Display Poland”). In connection with the transaction, Toshiba, LGD and LG Display Poland entered into an agreement whereby LGD or LG Display Poland each has a call option to repurchase Toshiba’s 20% interest in LG Display Poland and Toshiba has a put option to sell its 20% interest in LG Display Poland to LGD or LG Display Poland at a fixed price that equals Toshiba’s investment at cost. The call and put options are exercisable after five years from the date of acquisition and on each anniversary thereafter with no stated expiry date in whole or in part. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 480-10, Distinguishing Liabilities from Equity—Overall (EITF 00-4, Majority Owner’s Accounting for a Transaction in the Shares of a Consolidated Subsidiary and a Derivative Indexed to the Noncontrolling Interest in That Subsidiary ), LG Display Poland is consolidated as a wholly owned subsidiary and Toshiba’s 20% interest in LG Display Poland is accounted for as a financing and recorded as long-term other payables in the amount of (Won)38,445 million and (Won)38,346 million as of December 31, 2008 and 2009, respectively. In June 2008, Skyworth TV Holdings Limited (“Skyworth”) acquired a 16% interest in LG Display Guangzhou Co., Ltd. (“LG Display Guangzhou”). In connection with the transaction, Skyworth and LGD entered into an agreement whereby LGD has a call option to buy Skyworth’s 16% interest in LG Display Guangzhou and Skyworth has a put option to sell its 16% interest in LG Display Guangzhou to LGD at a fixed price that equals Skyworth’s investment at cost. The call and put options are exercisable after five years from the date of acquisition with no stated expiry date in whole or in part. In 2009, as a result of LGD’s additional investment in LG Display Guangzhou, Skyworth’s equity interest in LG Display Guangzhou decreased from 16% to 11%. In accordance with ASC Subtopic 480-10 (EITF 00-4), LG Display Guangzhou is consolidated as a wholly owned subsidiary and Skyworth’s 11% interest in LG Display Guangzhou is accounted for as a financing and recorded as long-term other payables in the amount of (Won)14,356 million and (Won)13,948 as of December 31, 2008 and 2009, respectively. Enhanced HTML Rendering of LG Display Co., Ltd. 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