Donation of COVID-19 Test Kits for the Indonesian Government From Four affiliates of the LG Group Including LG International

Donation of COVID-19 Test Kits for the Indonesian Government FromFour affiliates of the LG Group Including LG International - As a response to the urgent request of the Indonesian government that it requires Korean test kits, the local LG affiliates in Indonesia will donate 50,000 test kits to overcome the hardship faced together as one. On Apr 31, the four affiliates of the LG Group including LG Electronics, LG Chem, LG Innotek, and LG International will donate 50,000 test kits for COVID-19 to the Indonesian government.The decision behind such a donation was taken in response to the Indonesian government’s request to cope with the spread of COVID-19, as Indonesia currently lacks the diagnostic kits to tackle the coronavirus. The LG affiliates situated in Indonesia accepted the request of the local government in order to respond to the support they themselves have received from the local clients and customers and to overcome the global difficulties caused by this infectious disease together as one.The test kits that will be provided were additionally acquired by the LG affiliates as they urgently tried to reserve Korean production goods. Some test kits were supplied as samples to the Indonesian National Board for Disaster Management (BNPB) in the middle of last month, while the actual donation and product supply have been decided according to the recent completion of the tests carried out by the authorities concerned.As a representative of the LG affiliates that participated in the donation, CEO Chun-Sung Yoon from LG International sought to highlight their intentions through a letter to President Joko Widodo of Indonesia that they will provide test kits for COVID-19 by stating “We sincerely hope that the current situation will be solved at the earliest possible moment based on the unification of the Indonesian people and what little support we can provide them with will be of great assistance to them at such a difficult time.”Meanwhile, LG Electronics has been operating home appliance factories for TVs, air conditioners, refrigerators and others, while LG Chem has been running the overseas branches of the petrochemical businesses. Also, LG Innotek has been running the electronic component plants such as for digital tuners, whilst the businesses of the LG International include food and energy resources, industrial infrastructure and solutions related to ICT(information and communications technology) & healthcare.

LGI achieves a double success in profitability and growth

LGI achieves a double success in profitability and growth – trying to accomplish performance improvements - Selling the shares of LG Beijing Twin Towers at a price of about 341.2 billion won… Securing large scale financial resources for new investment - Improvements in financial stability through continuous asset management efficiency… Put the brakes on this year’s performance improvements- Expansion of the profits from the existing energy business… Promoting growth with new businesses through the nickel, ICT platform/solutions, etc. By selling all of the shares of LG Beijing Twin Towers, LG International has prepared the financial resources for new investment. Including the recent shares sale, LGI has secured a favorable level of financial stability through its continuous efforts in financial structure improvements, and it further plans to spur for achieving performance improvements in 2020 by focusing on business profitability and growth. ■ Selling all of its 25% share in LG Beijing Twin Towers… Further improvements in financial stability On February 10, LGI held a meeting with the board of directors and decided to sell its entire 25% share in LG Beijing Twin Towers at about 341.2 billion won.Situated near Tiananmen Square in China, LG Beijing Twin Towers were completed in 2005. It is an office building comprised of a total area of 15,280m2 that is divided into two 31-floor and 4-underground floor buildings. A 100% share of LG Beijing Twin Towers is held by the LG Holdings (HK) Ltd.A member from LGI discussed “The outcome of the shares sale will be used as financial resources for our new investments so that the company can accelerate the business promotion.” Also, he took the opportunity to expand on that by saying, “It would be also possible to expect positive effects in terms of the financial structure improvement that is followed by the reinforcement of the asset management efficiency and securement of the cash flow.”In 2019, LGI raised 10 trillion and 530.9 billion won as sales and 134.8 billion won as business profit. Although it experienced a rough time last year due to the fall in the resource price and the termination of the existing contract project business, it has enhanced the financial stability by reducing the percentage of the loan through the shares sale of non-operating assets such as LG Twin Towers, etc. ■ Striving to accomplish performance improvement in 2020… Preparation of the basis for growth by making profits from the energy business and carrying out new businesses This year, LGI will begin to create a valid momentum for performance improvement. It has established a strategic keynote that states that it would minimize the exposure to risk that occurs from the fluctuation of the resources market conditions and that it will advance the business structure and stabilize the portfolio in the solutions business.In order to achieve its goal, LGI will first maximize the operational efficiency of the palm plantations for the profit improvement of the palm business, and through this, it aims to expand the palm oil output and the quantity of trading. The annual production standard of the palm oil and the quantity of trading in 2020 are 200,000 tons and 320,000 tons respectively, which have increased by 33% and 78% each compared to that of the previous year.LGI predicts that its contribution to the palm business profit would further increase as it actively examines the additional acquisition of new palm plantations this year and due to the recent favorable price of the palm oil.Furthermore, LGI stated that it will increase the annual output of the GAM coal mine in Indonesia up to about 10 million tons this year. This production amount is increased by 32% compared to that of the previous year, and it is expected that the maximum annual output will reach about 14 million tons by 2022.The Wantugou coal mine in China will also raise the amount it actually produces. Regarding this coal mine, LGI plans to achieve more than 2 million tons of annual output, which is more than triple the amount of last year’s output. If the new coal bed that is currently being developed is finished by the end of this year, it will be possible to produce 5 million tons annually starting from next year.A sharp rise in the quantity of coal trading is expected as well. The reinforcement of the coal trading business is a strategic plan that was established after considering the fact that it will be able to create a stable profit even in the case of the coal price fluctuation after making investments in coal development. For this project, LGI will devote all of its strength to achieve 21 million tons that will mark an increase of 6 million tons compared to last year through the diversification of the coal suppliers and sales areas.For the new strategic businesses, LGI will focus on working on the nickel mine development business in Indonesia based on its capabilities in mine development and operation. Together with the business that secures the off-take of the nickel mine where the nickel is processed as the key base material of secondary batteries, LGI will focus on preparing future growth engines.In the meantime, LGI plans to continuously seek new business opportunities by developing various business platforms and solutions that are necessary for the development of the ICT-based (Information and Communication Technologies) fourth industry. Also, there’s a high chance of making developments in the logistics field by LGI. Last but not least, a member from LGI stated that company-wide efforts have been carried out to secure the foundation for continuous growth and that they will also secure both the profitability and growth of the company throughout this year.

A power generation company that LGI invested in has been listed on the stock exchange in Oman

A power generation company that LGI invested in has been listed on the stock exchange in Oman - This is the first case in which an overseas power generation company has been listed on the stock exchange in Oman through investment by a Korean private enterprise - Revenue of 6.9 million dollars… retrieval of the investment within 2 years from the operation of the power plant - Operation of a 120MW gas steam power plant, electric power supply to Musandam for 15 years- Taking the lead in all processes from the business proposal to stock exchange listing… LGI has proven its capability in project businesses A power generation company that LG International invested in in Oman has been successfully listed on the Oman stock exchange. This was the first time that a power generation company invested in by a Korean private enterprise made an entry on to the Oman stock market. On Dec 09, LGI stated that it had listed Musandam Power Company (hereinafter MPC) to the Muscat stock exchange, which is a joint corporation that LGI invested in to expand business in the overseas private power generation. MPC is a joint corporation that LGI invested in together with an Oman national investment company OOC (Oman Oil Company) in 2014, with LGI taking a 30% share of it. Through the IPO last month, MPC secured capital of 23 million dollars by offering 28.2 million worth of stock which are 40% of the total issued amount of stock, while LGI earned a profit of 6.9 million dollars as a result of selling 12% of the stock holdings. Thus, LGI retrieved all of its investment (approx. 11 million dollars) within 2 years from the commercial operation of the power plant, and it has been possible to apply the future dividend income as an additional source of investment. LGI has been conducting a private electricity generation business in which it has built a 120MW gas-steam power plant and generates electricity in the Musandam Peninsula of Oman through MPC. This power plant is the first private power plant in Musandam, and after construction was completed it commenced with commercial operation in 2017. The electricity generated has been supplied to the Musandam region stably together based on a power purchase agreement that covers a 15 year period concluded with OPWP (Oman Power & Water Procurement Company) which is a national water and power development company in Oman. Regarding the power generation business in Musandam, Oman, it began in light of LGI proposing its business directly to the Omani government in 2010. The Musandam Peninsula is a highly significant strategic site that due to its geographical advantage, as it is bounded by the Hormuz Strait which is a strategic location of the Middle East crude oil transportation. Considering this fact, LGI predicted that demand for electric power would rise according to the regional economy revival and increase in commercial activities in the future and persuaded the Oman government that the infrastructure for the electricity generation is essential for the Musandam region. After receiving a positive response from the Oman government, LGI established a joint corporation MPC by cooperating with the local state enterprise OOC for the running of a full-scale business. Also, in addition to concluding a power purchase agreement with the Oman government for securing stable management and profits, LGI took the lead in every process from financial raising to power plant construction and management. A staff member from LGI explained “LGI has proved its excellence in running a project business by leading all of the processes from the business proposal to the commercial operation of the power plant along with successfully entering the Oman stock market for the first time as a Korean enterprise” and continued “From now on, LGI will strive to create customer value by maintaining a steady and stable cash flow based on the high dividend rate.” In the meantime, LGI plans to actively develop additional business opportunities mainly in the Asian market including Indonesia and Indochina along with the Middle East with high potential economic growth through its comprehensive business capabilities that cover business planning, sales, financial raising, facility management, and marketing. (The End) The view of the gas thermal power station in Musandam, Oman

LG International has announced the Appointments of Executives in 2020

LG International has announced the Appointments of Executives in 2020On November 28, LG International held a board meeting to settle the regular appointment of executives for the year 2020 and announced one person who has been promoted to the position of executive director and a total of four newly appointed vice presidents. For this appointment, KOO HYUK SEO Senior Vice President has been promoted to the position of executive director in recognition of his outstanding achievements in the resources businesses including coal and metal businesses. The newly appointed executive director graduated from Sungkyunkwan University Department of Law and joined LGI in 1996 as a new employee. Since then, he was appointed as Head of the Coal Business Unit(Vice President), and Head of the Metals Business Unit(Vice President) and took the lead in expanding the company’s businesses and improving the business conditions. In addition, LGI newly appointed PARK TAE JUN Team Leader of the Coal Marketing Team 1 , SHIN DONGHEON Team Leader of the IT Business Development TFT, KIM SANG HWI Head of the Palm Business Division, and KIM HUN Managerial Administration Division as vice presidents, along with appointing KIM PILYONG Vice President from LG Display as Head of the Legal Service Division. A staff member from LGI stated, “LGI selected smart young leaders with great potential who can lead the major future businesses and development of new projects, and we expect that this appointment is going to bring greater energy to the organization.” Furthermore, he continued, “Through this appointment of our board members, LGI will strive to establish a business structure that can create stabilized profits and enhance our business competitiveness.” (The End)[List of the board members in 2020]Senior Vice President(Executive Promotion)KOO HYUK SEOHead of the Metals Business Unit Vice President(New Appointment of Vice Presidents)PARK TAE JUNTeam Leader of the Coal Marketing Team 1SHIN DONGHEONTeam Leader of the IT Business Development TFTKIM SANG HWIHead of the Palm Business DivisionKIM HUNHead of the Managerial Administration Division Vice President(Transferred Executive)KIM PILYONGLegal Service Division

LGI Provided ‘Training to Its Overseas Investment Business Sites’ for Staff Members

LGI Provided ‘Training to Its Overseas Investment Business Sites’ for Staff Members- 2nd year staff members visited the coal mine, palm plantation, and hydroelectric power plant sites that are located in Indonesia - The purpose of such a visit was to promote LGI people with a sense for the field and the members’ pride and sense of belonging to the company have been greatly enhanced because of it. On June 17, LG International revealed that it had conducted a training program for 2nd year staff members to have a field trip to overseas investment business sites. The aim of such an activity was to enhance the staff members’ understanding of the overseas business sites of the company and further develop their work experiences. To start with, the training programs divided 24 staff members who had joined the company in 2017 into three groups and each group subsequently visited the coal, palm, and power generation business sites in Indonesia. From May 19, each of the two groups visited the coal mine (PT.GAM) and palm plantation (PT.PAM) located in Kalimantan for 6 nights and 7 days, while the remaining group visited the private hydroelectric power generation (PT.BNE) situated in northern Sumatra from June 10 for 5 nights and 6 days. During the program, they were able to tour and thoroughly experience the overall field businesses regarding the coal, palm oil, and power production processes. Indonesia, which was the training site for the staff members, is a strategic site of LGI where the company’s resources and infra businesses are conducted to the greatest extent. Since 2007, when LGI first invested in the MPP coal mine, the company officially commenced with conducting resources businesses in Indonesia. For instance, LGI invested in the palm plantation in 2009 and in the GAM coal mine in 2012, while rapidly expanding its businesses in Indonesia by taking over two Indonesian palm plantations (TBSM, GUM) last year. At the same time, the company continues to make active actions in the local infra businesses such as entering into the development project of the private hydroelectric power generation in Hasang in 2015. Based on such activities, LGI currently operates two coal mines, three palm plantations, and one power plant in Indonesia.DAN SANG WOO, a staff member from the LGI Finance Team who participated in the training program, discussed how he was able to recognize the importance of the business sites and further enhance his understanding of specific tasks by directly experiencing the major local business fields of the company. Furthermore, he mentioned that it was an excellent opportunity to advance his pride and sense of belonging to the company. Since 2009, LGI has been providing training programs for staff members to visit the company’s major overseas business sites including China and Indonesia, and so far, about 300 staff members have participated in the training program.Regarding the training program, an LGI member revealed that the majority of staff members have been highly satisfied with visiting the overseas business investment sites since they are able to directly observe and experience the local businesses. Moreover, he pointed out that in addition to such a program, the company is conducting basic job training, one-to-one mentoring, and many other human interchange programs to ensure that the staff members can adapt themselves to their tasks and the organization on a greater scale.Since this year, LGI has considerably expanded the programs and the range of participants in order to foster future entrepreneurs in the long-term through the MBA training program by selecting and dispatching LGI members to overseas along with the overseas conference participation programs, etc. Furthermore, the company has also expanded various in-company and outside company training programs such as the required courses for different positions, capability development for specialized duties, leadership development of managers, in-company language program, communication education for all company members, and so on. Through such activities, LGI plans to construct a system called the ‘virtuous circle of growth’ where the development of individuals will also become the development of the organization, which in turn will result in the growth of individuals. (The End) Staff members who participated in the LGI overseas investment business site training can be seen harvesting the palm tree fruits by themselves at the palm plantation in Indonesia. Staff members who participated in the LGI overseas investment business site training can be seen listening to an explanation regarding the structure and management of the power plant at the private hydroelectric power generation site located in Hasang, Indonesia. Staff members who participated in the LGI overseas investment business site training can be seen listening to an explanation regarding the overall mine management duties including coal mining, coal transportation, coal shipment, and many others at the GAM mine in Indonesia.

LG International Members “We present our grateful heart to our parents”

LG International Members “We present our grateful heart to our parents”More than 200 LGI members are making flower boxes for Parents’ Day LGI members make flower boxes decorated with carnations and mini roses and present them to their parents for Parents’ Day.On May 3rd, LGI announced that it held an in-company event ‘Making flower boxes for Parents’ Day’ to encourage the members to think about the meaning of Parents’ Day and express their appreciation to their parents. On the day of the event, about 140 LGI members took the time to participate in making the flower boxes that will display their gratitude to their parents. Besides, another event is scheduled to be held on the day before Parents’ Day which will include approximately 60 LGI members.The annual ‘Making flower boxes for Parents’ Day’ event was held for the second time this year, and it was first hosted after originating from an idea presented by the Future Board, the in-company communicating organization of LGI, and the floral arranging club L.Flora in answer to the question ‘how about we help our LGI members so that they can make flowers for their parents by themselves?.’ This event was directly planned and hosted by the company members, and it has become significantly popular since the number of LGI employees participating in the activity has increased from 160 people last year to more than 200 people this year.

Relocation of the LG International Head Office to the LG Building in Gwanghwamun, Jongno-gu

Relocation of the LG International Head Office to the LG Building in Gwanghwamun, Jongno-gu - Relocation from the LG Twin Tower in Yeouido to the LG Building in Gwanghwamun, Jongno-gu … all employees will be working in Gwangwhamun starting from Feb 11.- An exchange of the office space with the Energy Solution Company in LG Chem …following such an exchange, an expansion of the business synergy is expected to occur in each of the two companies. On Jan 31, LG International declared that it will relocate its head office from the LG Twin Tower in Yeouido to the LG Building in Gwanghwamun, Jongno-gu, Seoul. The length of the relocation project will roughly be about a week starting from Feb 2, and all of the employees of LG International will be working in the LG Building in Gwanghwamun from Feb 11. The relocation of the LG International head office was decided upon so that the company can exchange the office space with the Energy Solution Company in LG Chem that is located in the LG Building in Gwanghwamun. The two companies were of the same opinion, which was that it was time to enhance the speed of decision making and create synergy by uniting the main businesses of each company to one place. In fact, the office areas of the two businesses had previously been separated. A member of LG International stated that “Considering the business characteristic of LG International in that it conducts almost all its business in the overseas market along with the scale of the organization and human resources, the relocation of the head office is an extremely practical decision. Besides, this relocation will also enable easier communication with PANTOS, the affiliated distribution company which is located in the LG Building in Gwanghwamun.” Meanwhile, the Energy Solution Company of LG Chem will relocate its office space to the LG Twin Tower in Yeouido where the LG Chem head office is located, as the continuous expansion of its business requires a considerable amount of discussions regarding investments and business strategy at a corporate level.

LG International Has Nominated YOON CHUN SUNG Executive Vice President as CEO

LG International Has Nominated YOON CHUN SUNG Executive Vice President as CEO YOON CHUN SUNG Executive Vice President On Nov. 27, LG International held a board meeting to nominate YOON CHUN SUNG Executive Vice President as CEO and at the same time, carried out the regular appointment of executives by announcing the new appointment of three new Vice Presidents and the promotion of one executive. YOON CHUN SUNG Executive Vice President graduated from Yonsei University as an undergraduate and Yonsei University Graduate School Department of Geology. He joined LG International in 1989 as a new employee, and since then he has been in charge of the head of the Coal Business Division 1 (Vice President), the head of Indonesia region representative (Senior Vice President), and the head of the Resources Business Group (Executive Vice President). LG International has great expectations for YOON CHUN SUNG Executive Vice President to contribute to the construction of a solid resource and infra oriented business structure along with the stable profit creation based on his considerable expertise in the resources business and his successful investment business experiences. In addition, as part of the human resources affairs meeting, LG International newly appointed PARK DONG SOO the head of the Indonesia Palm Business Unit, KIM JUN HYOUNG the head of the Muscat Office, and MOON HYUN JIN the head of the Human Resources Management Team as Vice Presidents, in addition to transferring MIN BYEONG IL Vice President of LG Electronics as CFO in LG International. <New Appointment of Vice President> PARK DONG SOO Vice President KIM JUN HYOUNG Vice President MOON HYUN JIN Vice President <Executive Transfer> MIN BYEONG IL Vice President A spokesperson from LG International mentioned “This time, our human resources affairs intended to appoint people who have made the most appropriate accomplishments in line with the future preparation of LGI based on their leadership and expertise.” The staff member also had this to say, “We will strive to construct a stable and sustainable business structure and reinforce our business competitiveness.” Furthermore, SONG CHI HO President who for the past 35 years has worked tirelessly for the company, and been an excellent leader of LG International will retire(at the regular age limit) from the company and take up the position of an adviser in the future. LG International Executive Appointment Lists 2019 ■ CEO Nomination Executive Vice PresidentYOON CHUN SUNGCEO ■ New Appointment of Vice President : 3 persons Vice PresidentPARK DONG SOOHead of the Indonesia Palm Business UnitVice PresidentKIM JUN HYOUNGHead of the Power & Infra Project DivisionVice PresidentMOON HYUN JINHead of the Human Resources Division ■ Executive Transfer : 1 person Vice PresidentMIN BYEONG ILCFO

LG International Hosted In-company ‘Making Flower Boxes’ Event, Commemorating Parent’s Day

“Our Appreciation for Parents” LG International Hosted In-company ‘Making Flower Boxes’ Event, Commemorating Parent’s Day LG International employees participated in making flower boxes with carnations and miniature roses as Parent’s Day commemoration. On May 3rd and 4th, LG International hosted the in-company event ‘making flower boxes for the Parent’s Day’ so that the employees can express gratitude to their parents. About 160 employees were present at this event to make flower boxes and write letters to their parents. [Reference] Introducing the organizational culture of LG International LG International’s motto for organizational culture is ‘A Happy Home Leads to Better Work Performance (meaning the company and its members grow together by smart working based on being in a happy family)’; through the activities reflecting such motto, LG International tries to build the organizational culture where employees can focus on works based on the well-shaped work and life balance. Recently, it introduced new direction of organizational culture activity focusing on ‘Leaps and Bounds Through Work’ which means ‘making achievements through work and growing exceptionally,’ so that the employees can feel pleasure and self-esteem of their work.

LG International Conducts ‘Training to Overseas Investment Corporation’ for Staffs

LG International Conducts ‘Training to Overseas Investment Corporation’ for Staffs - 6 nights and 7 days of schedule at the coal mine and palm plantation in Indonesia; special training for second-year staffs- Aims to foster personnel with field sense … advancing their self-respect and sense of belonging to the company On May 1st, LG International confirmed that it carried out a training program to overseas investment corporation specifically for second-year staffs so that they can understand the project sites and obtain work experiences.This training was done in Indonesia for 6 nights and 7 days from April 22nd. Starting from the MPP coal mine development in 2008, LG International has regularized the projects in Indonesia. Since then, LG International expanded its resource business by continuously securing the management of palm plantation and GAM coal mine. In August 2015, it extended the business to the private hydroelectric power plant development project in northern Sumatra in order to actively take part in the infrastructure business in Indonesia.A total of 14 personnel who joined the company in 2016 were divided into teams to visit GAM coal mine and PT.PAM plantation in Indonesia, and had direct experiences and tours to the field works of the whole production process of coal and palm oil.Lee Jaewon, a staff in Power Project Team, stated: “I could feel the company’s status that it is promoting resource and infrastructure development projects in the global market, and this experience was a great help for me to acknowledge the importance of the fields and to improve business insight.”Since 2009, LG International has been administering training programs for staffs to visit major overseas corporation including China, Indonesia and other countries, and about 250 staffs have participated so far.Moon Hyunjin, head of LG International Human Resources Management Team, said “We are making an effort to promote competent personnel by constructing internal education systems that aim to systematically develop abilities necessary for each position,” and further claimed that “To be specific, in the case of the overseas investment corporation training program, the staffs have high participation satisfaction because it is possible to develop the field sense of major projects and understand business works.”Meanwhile, LG International is supporting new employee training where new employees and staffs can learn basic skills about their duties, one-to-one mentoring and other personnel exchange programs for easy adaptation of employees to their duties and the organization. Also, it offers various opportunities to enhance business professionalism by establishing in-company education programs about business planning and development, etc. (The end) [Picture 1] LG International staffs visiting the GAM coal mine are showing passionate spirit on the field in Indonesia. [Picture 2] LG International staffs participating in the overseas investment corporation training program are listening to the explanations about the business at the control room in the Indonesia GAM coal mine. [Picture 3] LG International staffs participating in the overseas investment corporation training program are listening to the explanations about the mining plan along with checking the ground plan at the Indonesia GAM coal mine field.

LG International started commercial operation

LG International started commercial operationof Wuwei thermal power plant in China - Joint venture with a Chinese government-owned power company Construction completed two years after the conclusion of the contract in 2015- Achieved consecutive outcome from the power generation sector in infrastructure business which will boost the development of new projects The whole view of Wuwei thermal power plant in Gansu Sheng, China On the 20th, LG International announced that the Wuwei thermal power plant, which was built through a joint venture with the representative power company of Gansu province in China, Gansu Province Electric Power Investment Group Co., Ltd (GEPIC) has recently commenced with operation and is producing power. Wuwei thermal power plant is the first cogeneration power plant in Wuwei city, built in an area of 410,000㎡ with a total project cost of 3.18 billion RMB. The power generation capacity is 700MW, which can produce about 6 million MWh of electricity and heating energy. This amount can be used by small cities with a population of 500,000. Especially, during the winter season, heating energy can be provided to an area of 14.77 million ㎡. The entire production of electric power will be supplied to the State Grid Corporation of China (SGCG) and companies with large scale power consumption. In October 2015, LG International signed a joint venture agreement with Gansu Province Electric Power Investment Group Co., Ltd for Wuwei coal-fired cogeneration plant and by investing 318 million RMB LG international now holds the share of 30%. Gansu Province Electric Power Investment Group Co., Ltd is a major power company owned by the government under the government policy, and is made up of 100% investment from the government of Gansu province. Other than the power generation business, Gansu Province Electric Power Investment Group Co., Ltd is also pursuing various development projects in energy, logistics and the real estate sector. Additionally, in 2016, Gansu province in China maintained stable economic growth rate with gross production of 708.5 million RMB. In particular, the prospect of future development is considered to be positive since Gansu province has been highlighted as a major logistic hub in the One Belt One Road Strategy proposed by China’s President Xi Jinping in 2013. With the growing opportunities for investment to the power generation and industrial infrastructure business in the northwestern region of China with high growth potential, LG International is planning to implement enterprise-wide efforts to expand the business in China, which has accumulated considerable expertise with resource businesses. ◆ The Hasang Hydroelectric power plant project in Indonesia is also underway. The project is planned to be completed by 2019. Bird’s eye view of Hasang Hydroelectric power plant in Indonesia Meanwhile, the power generation sector in the infrastructure business accelerated by LG International is gradually displaying the outcome. The hydroelectric power plant project in Indonesia invested by private capital is also heading forward smoothly following the projects in China. In 2015, LG International had decided to develop the Hasang Hydroelectric power plant project producing 41MW with the local energy company, Titan Group. And the company is leading a construction project in the Toba region in North Sumatra, with the targeted completion year by 2019. LG International holds 91.98% of the share which makes the company the largest shareholder. Investment in the hydroelectric power plant is made through private capital and is constructed and owned by the private company. The project is a BOO(Build-Own-Operate) type project which means collecting investment costs with direct operation. More importantly, LG International secured an agreement for 30 years of long term power purchase with the owner company, Pelayanan Listrik Negara(PLN). According to the industry analysis, power generation business can make long-term and stable profits based on the power supply contract leading to a synergy effect with the resource business which means it can lead to stronger business competitiveness. LG International is planning to expand the power generation business in South East Asia as well as the Middle East region which will accelerate the development of the new power generation project based on project experience and local expertise. [Reference] ‘One Belt One Road’ Strategy‘One Belt One Road’ is the combination of ‘One belt’ – the Silk Road economic belt that connects China to Central Asia and Europe- and ‘One Road’ – 21c maritime Silk Road from Southeast Asia through Southwest Asia to Europe and Africa based on the maritime cooperation between ASEAN-countries. The Xi Jinping administration has indicated that the development of the local economy is the key assignment of the 13th five-year plan and is now proceeding with the implementation of the ‘One Belt One Road’. Through this plan, the administration is expecting to witness outcomes such as a vibrant domestic economy, stronger economic cooperation with foreign countries and maintaining its status as an economic power.

LGI CEO Song Chi-Ho is Promoted to President

LGI confirmed the 2017 annual appointment of executives during the board meeting held on the 1st of the month and announced the promotion of one president, one senior vice president, and two vice president. During this meeting, executive vice president(CEO) Song Chi-Ho who has built a stable business structure based on resources and infrastructure and secured future growth engines was promoted to president(CEO). President(CEO) Song joined LGI in 1984 after graduating from the Department of Economics of Korea University. He was s head of the Industrial Materials Group 2, head of the Indonesia Region, head of the Resources and Raw materials Group, and the executive vice president(CEO) of LGI. President(CEO) Song is known as ‘the legitimate LGI-man’ who has successfully managed resources and infrastructure investment projects both at his office and on the sites. In addition, LGI promoted vice president(CFO) Park Yon-Hwan who led the establishment and implementation of the medium and long-term strategy of the company to that of an senior vice president. Baek Pungryeol (head of the Food&Commodities Division) and Kang Seong-Cheol (head of Jeongdo Management Division) were also appointed to the vice president. A representative of LGI stated that, “LGI has actively appointed young and capable talents to promote various projects and vitalize the organization” and added, “We will continue to strive to build a stable and sustainable business structure and strengthen our competitiveness through these new appointments.”

LGI Successfully Developed a Large-Scale Coal Mine in Indonesia

LGI has successfully developed a large-scale coal mine in Indonesia after four years of hard work.LGI announced on the 29th that it held a completion ceremony at GAM Coal Mine located in the East Kalimantan, Indonesia. About 40 participants including CEO Song Chiho, employees and executives of LGI, and CEOs of partner companies in Indonesia attended the ceremony and successfully celebrated the pilot production. ■ The Successful Development of a Large-Scale 220 Million Ton Coal Mine and the Commercial Operation Will Begin Next January.GAM Coal Mine is an open-pit mine located on a 106㎢ of land that is 36 times larger than Yeouido (2.9㎢). It is a large-scale mine with roughly 220 million tons of mining reserves. The pilot production which began this month will continue through until the end of this year when the commercial operation will begin in January. The production size will be about 3 million tons and the output will be gradually increased up to 14 million tons.LGI reserved all rights for all of the coal produced at GAM Coal Mine and will be supplying the product to major markets in India, China, and other Asian countries.In particular, demand for power is skyrocketing in the majority of major developing countries in Southeast Asia due to its consistent economic growth. Therefore, it is expected that the use of cost-effective coal power facilities will also expand since the current power infrastructures in those countries are in extremely poor condition.Also, due to its location, GAM Coal Mine is also able to secure strong competitiveness in transportation. Other coal mines in Indonesia are located about 100 to 300km away from an outer port whereas GAM Coal Mine is only 60km away from the port. The ideal location of the coal mine will secure cost competitiveness as well. ■ LGI will grow as a major company in Asia after the Second Successful Development of a Coal Mine in IndonesiaLGI is emerging as a major coal supplier in Indonesia as it has successfully developed the GAM Coal Mine in Indonesia following on from the success of the MPP Coal Mine.The successful completion of MPP Coal Mine served as a strong foundation for the successful development of GAM Coal Mine. MPP Coal Mine was taken over by LGI in 2007 and it is the first coal mine that was successfully developed by a domestic trading company from exploration to the production phase. Currently, the scope of its production size is about 3 million tons per year and it is also perfectly equipped with the necessary facilities and manpower in addition to the transportation infrastructure including roads and a port.A representative of LGI stated that, “LGI will grow as a major Asian company by using the GAM & MPP coal mines as the major coal production base which will lead to the expansion of the size of production in Indonesia by 2020.” and added, “LGI will be then able to contribute to improving the power shortage in developing countries in Asia.” ■ Achieved Success after 4 Years of Hard Work by Overcoming Many Difficulties Associated with Land Compensation, Permits, and Inadequate InfrastructureLGI acquired a 60% share of this coal mine in 2012 and secured the operating rights. Since then, the company overcame many difficulties related to land compensation, permits, production and the construction of transportation infrastructure one by one and achieved a successful outcome.The company experienced some difficulties in the course of the project development due to the distinct land compensation system of Indonesia, and permit issues caused by overlapping mineral rights and forest rights. However, LGI successfully solved those issues by actively communicating and cooperating with related local government offices. In addition, the Embassy of Korea in Indonesia also actively supported LGI.CEO Song Chiho conducted meetings with the CEOs of local partner companies for the construction of the infrastructure of the coal mine including the port and land. At the same time, the management team and other working-level teams at the headquarters and the site worked together for the successful completion of GAM Coal Mine despite the difficult project environment. CEO Song Chiho of LGI (second from right) is pressing a control button of the production facility to commence with the pilot operation of GAM Coal Mine. LGI will begin the commercial operation of the plant from next January and will increase the production size from 3 million tons up to 14 million tons in the future. <Reference> The location of LGI’s GAM Coal Mine

A Unique ‘SO:POONG’ Event of LGI for a Better Communication Environment

LGI rolled up its sleeves to improve the levels of communication within the company. The purpose of the workshop was to create an organizational culture that will enable the employees to feel pride and passion as professional businessmen while enjoying their work. CEO Song Chi-Ho held the ‘SO:POONG’ event on the 12th floor at LG Twin Tower in Yeouido with 300 employees in attendance. This is a completely different event from the regular Morning Assembly that are held every quarter. Various events and lectures were prepared to enhance the participation of all employees and executives and help them to have fun while smoothly communicating with each other. Each participant received a ‘fortune cookie’ during the event and some of them won surprise gifts. In addition, they also made and flew paper planes on which they wrote their hopes and wishes for the management group or their colleagues. Meanwhile, a mutual communication channel for the management group and employees, Future Board, was officially launched during the event. Future Board is an internal communication tool that means, ‘a council for future preparation’ and was created to allow for the smooth communication between the management group and employees to better understand each other, improve the organizational culture, and promote the development of the company. CEO Song Chi-Ho highlighted the improvements that must be made for the better organizational culture of LGI during the event to the participants and said, “LGI must be a company where you can feel pride as a professional businessman, exert passion, and enjoy your work.” LGI plans to promote various cultural activities within the organization to focus on ▲the smooth communication between the management and employees, ▲professionalism ▲strong relationship between co-workers ▲enhance the happiness of families and society. CEO Song said, “You must be happy and enjoy your work so you can stay focused and come up with creative ideas” and added, “I will strive to create the distinct culture of LGI where people communicate with each other well while staying strong, tenacious, and smart”Executives and employees of LGI gathered together on the 12th floor at LG Twin Tower in Yeouido and are flying paper planes on which they wrote their hopes and wishes for the company and their colleagues.

LGI Launched the ‘Future Board’ for Effective Communication

LGI chose effective communication as the first goal of this year.LGI announced on the 5th of the month that it has launched a mutual communication channel for the management and employees, known as the ‘Future Board’ this year. Future Board is an internal communication tool that means, ‘a council for future preparation’ and was created to allow for the smooth communication between the management group and employees to better understand each other, improve the organizational culture, and promote the development of the company. The introduction of the Future Board will help the management group to share business plans, major issues, and management policies with the employees in real time whereas the employees can suggest their ideas for the organizational culture and working environment.17 employees who represent each Business Division will be selected to operate the Future Board and the CEO, head of each Biz.Group, Management Planning Division, and HR Division will also join as council members.A representative of LGI stated that, “The importance of communication and teamwork is growing due to the uncertainties of the management environment.” and added, “We already had a presentation on the Future Board at the end of last year for all employees and executives and plan to officially launch the council this March”.Meanwhile, each team and division of LGI is regularly holding meetings to improve the communication culture of the organization and is also frequently holding the same types of meetings for new employees and employees who are to be promoted.

LGI Announced the Appointments of Executives in 2016

LGI finalized the 2016 annual appointment of executives after the board meeting on the 27th of the month and announced the appointment of two new vice president. Hong Hyeong-Gi who led the expansion of coal projects in Indonesia and increased the profitability as a Head of the Indonesia Caol Business Unit and Lee Chang-Hyeon, a Head of Coal Business Division 1, were promoted to vice president. A representative of LGI stated that, “Talents who contributed in playing a leading role in new markets with their leadership and specialty were appointed strictly based on their skills and performance” and added, “LGI will continue to strive to build a business structure that can stably create profits and strengthen our competitiveness with our new directors.”

LG International Signs Agreement to Enter into Partnership with Wuwei Coal-Fired Combined Heat & Power Plant

LG International Signs Agreement to Enter into Partnership with Wuwei Coal-Fired Combined Heat & Power PlantLG International Corporation held a signing ceremony Tuesday for the Wuwei Coal-Fired Combined Heat & Power Plant, Gansu Province, China, with Gansu Electric Power Investment Group (GEPIC), a leading Gansu Province-based investment company, at LG Twin Towers in Yeouido, Seoul.Participants in the ceremony included LG International CEO Song Chi-ho, GEPIC President Li Ningping, and a dozen other officials from both entities.At the ceremony, Mr. Song, LG International CEO, said, “We look forward to strengthening the strategic relationship between the two companies with this joint investment partnership, which has been considered a successful entry into northwestern China, where the potential for growth is high.”The two companies signed an MOU in March, and reached an agreement to make a joint investment in the Wuwei Coal-fired Combined Heat & Power Plant. A total of RMB 3.25 billion (about KRW 599.6 billion) will be invested in the Wuwei Plant project. Construction of the power plant will be completed in the second half of 2017, after which the plant will begin commercial operations.

LG International Corp.-Hyundai Engineering Completion of the Turkmenistan Oil Refinery

LG International Corp. – Hyundai Engineering Completion of the Turkmenistan Oil RefineryLG International Corp. has announced completion of the project to modernize the Turkmenbashi Oil Refinery. The completion ceremony was held at the plant on the 9th.The ceremony was attended by Oil and Gas Vice Prime Minister Baymyrat Hodjamuhammedov, other high-ranking Turkmenistani government officials, LG International CEO Song Chi-ho, Hyundai Engineering President Kim Wi-chul, and other senior South Korean businessmen.The project site is located at Turkmenbashi, some 500 km northwest of the capital city of Ashkhabad. The consortium of LG International and Hyundai Engineering won the project in 2012 from Turkmenistan’s state-owned oil refining company for $464 million. Built in 1943, the dilapidated refinery had become inefficient, but the revamping will turn it into a modern facility that will annually produce 2.3 million tons of premium high-octane gasoline.The project is the 2nd by the consortium of the two South Korean companies – the previous project was the $1.3 billion Galkynysh Gas Desulfurization Facility completed in September 2013. This current project is considered to be an opportunity to strengthen the companies’ foothold in the petrochemical market in Turkmenistan.Since its entry into Turkmenistan in 2009, LG International Corp. has been active in making inroads into the Central Asian plant market to explore new markets and diversify its market reach. As the result of such efforts, a total of seven plant projects are in place, including the completed Galkynysh Gas Desulfurization Facility, and the project to modernize the Turkmenbashi Oil Refinery – with a combined total value of over $10 billion.Thanks to President Park Geun-hye’s visit in June last year and Turkmenistani President Gurbanguly Berdymukhammedov’s return visit in April this year, new projects by the two companies include a $3.9 billion ‘natural gas-to-liquid plant,’ a $940 million ‘2nd project for oil refinery modernization,’ and a $2 billion ‘No. 2 gas petrochemical plant’ (for which an MOU was signed). The increasing momentum is opening a new chapter in the success story, through active support from the two governments.Based on such achievements, LG International has set up a strategy – by building a stronghold to actively seek new projects – to win plant construction projects, not just in Turkmenistan but also elsewhere in Central Asia, where there is ample potential to develop natural resources such as oil and gas.Turkmenistan has been implementing mid- and long-term development plans to massively expand its industrial infrastructure by 2030. LG International will actively seek further project opportunities in connection with these development plans.<The Turkmenistan Plant Project by the LG International–Hyundai Engineering Consortium> Project NameOrder ReceivedPurchaserContract ValueConstruction PeriodNotesGalkynysh Gas Desulfurization Facility2009State-owned gas company$1.29 billionJan. 2010 – Dec. 2014CompletedTurkmenbashi Oil Refinery Modernization2012State-owned oil refining company$460 millionJun. 2012 – Sep. 2015Completion Ceremony held on Oct. 9Ethane Cracker Plant2013State-owned gas company$2.98 billionJul. 2014 – May 2018Consortium of Hyundai Construction & Toyo EngineeringKiyanly Oil Processing Facility2013Petronas$240 millionJun. 2013 – Feb. 2016 GTL Plant2015State-owned gas corporation$3.89 billion63 months after work begins Turkmenbashi 2nd Project for Oil Refinery Modernization2015State-owned oil refining company$940 millionJan. 2016 –Jul. 2019 No. 2 Gas Petrochemical PlantMOU Signed (Expected in 2016)State-owned gas corporation$2 billion (not yet fixed)Undecided <View of the Turkmenbashi Oil Refinery><Site Map of the Turkmenbashi Oil Refinery Modernization Project>

LG International constructs ‘Bridge of love’ in Indonesia and as an activity fulfilling Corporate Social Responsibility

“I love you! LG International bridge of love” LG International constructs ‘Bridge of love’ in Indonesia and as an activity fulfilling Corporate Social Responsibility- Reconstructed a falling bridge near LGI’s palm plantation area in Indonesia for safety and convenience of community residents.- Construction expense was supplemented by donation by LGI employees and the company will constantly put additional efforts to practice social contribution.LG International practiced corporate social responsibility by reconstructing a sturdy bridge in Indonesia.LG International replaced a falling wooden bridge with a stone bridge near the company’s palm plantation area located in Sekadau, Western Kalimantan, Indonesia.The former bridges were severely damaged and worn but being used as the main route to 8 elementary, middle and high school which could have led to accidents. Yudi(30) said “I am very glad a new bridge is being donated to the community”, and added “There is no longer a need to worry whenever crossing the bridge”.The construction expense of the newly built bridge was completely supplemented by voluntary donation by LGI employees. The company has been running a matching-grant donation system from 2012 where LGI donates the equivalent amount the employees donates for community.An LGI official said, “We expect replacement of the bridge will help improve safety and convenience of community residents”. “We plan to constantly put additional efforts to practice social contribution as a good example” he added.LG International has been actively practicing a variety of social responsibility activities such as free meal delivery, support for restoration from natural disasters, scholarship award, sponsoring sporting and culture activities. ▲ Local residents, students and LGI employees working at Palm subsidiary are waving hands at the ‘Bridge of love’.