DAELIM INDUSTRIAL CO., LTD. Petrochemical Division OVERVIEW DAELIM INDUSTRIAL CO., LTD. Petrochemical Division

CORPORATE STRUCTURE (DAELIM GROUP) Daelim Industrial Co., Ltd. (Parent Company of Daelim Group) Affiliated Companies Construction Division - E & C Operation  Petrochemical Division - HDPE, Polybutene, Plastic Products Daelim Corporation Seoul Securities Daelim Information & Service Daelim Motors Daelim Concrete Products Korea Development Corporation Samho International Ora Resort Daelim Education Institution Web-Tech Venture Capital Daelim Foundation of Culture

COMPANY HISTORY 1939 1975 1979 1987 1989 1992 1999 2000 • Established • Established Honam Ethylene • Participated to Petrochemical industry(Honam Ethylene) • Operated Naphtha Cracking Center NO. 1 1979 • Merged with Honam Ethylene (Petrochemical Division) • Started Pipe processing business 1987 1989 • Operated Naphtha Cracking Center NO. 2 & HDPE plant 1992 • Established R & D Center at Daeduk 1999 • Established Yeochon NCC(with Hanwha)and transfered LDPE & L-LDPE plant to Hanwha in exchange for Hanwha’s PP plant 2000 • Established KR Copolymer(with Phillips) & Polymirae(with Basell)

PETROCHEMICAL DIVISION BEFORE RESTRUCTURING ETHYLENE 730,000 MTA HDPE 220,000 MTA PHILLIPS PROPYLENE 420,000 MTA LDPE 120,000 MTA ICI RAYTHEON STYRENE MONOMER 140,000 MTA MIXED-C4 290,000 MTA LLDPE 260,000 MTA Basell (MONTELL) NAPHTHA CRACKING CENTER BUTADIENE 100,000 MTA PP 330,000 MTA Basell (MONTELL) NIPPON ZEON LUMMUS MTBE 130,000 MTA BENZENE 180,000 MTA K-RESEIN 40,000 MTA PHILLIPS UOP IFP ARCO APCI ISO-BUTENE 60,000 MTA TOLUENE 110,000 MTA POLYBUTENE 25,000 MTA BUTENE-1 30,000 MTA DAELIM XYLENE 60,000 MTA SNAMPROGETTI

RESTRUCTURING PETROCHEMICAL DIVISION Daelim industrial Co., Ltd. (Petrochemical Division) YEOCHON NCC (With Hanwha) HDPE 380,000 MTA ETHYLENE 1,300,000 MTA POLYBUTENE 25,000 MTA Daelim’s Petrochemical Plant PROPYLENE 705,000 MTA Plastic Products 130,000 MTA BTX 550,000 MTA STYRENE MONOMER 140,000 MTA KR COPOLYMER (With Phillips) POLYMIRAE (With Basell) MTBE 150,000 MTA K-RESIN 40,000 MTA BUTADIENE 120,000 MTA POLYPROPYLENE 540,000 MTA

FINANCIAL HIGHLIGHTS Description 1,131,581 615,637 450,956 428,791 (UNIT : Million won) Description 1999 2000 2001 2002(e) Total Sales 1,131,581 615,637 450,956 428,791 Total Assets 1,432,283 986,978 847,160 829,371

A Specialized Leading Chemical Company Global Standardization VISION Vision A Specialized Leading Chemical Company - Ranking 1 or 2 in Asia - Global Standardization Specialization High-Advanced Business Structure Strategy Choice and Focus Reinforce Global Partnership through Strategic Alliance Develop Value – Added Chemical Business

ORGANIZATION DAELIM Construction Division Petrochemical Division Head office Yeochon plant Yongsung plant Junghung plant Plastic Products Division Daeduk R & D Center Chochiwon Plant Chonju plant Wolha plant Sunchon plant YNCC KRCC Polymirae Daelim Corporation Sales Agent Monomer Production co. K-Resin Production co. PP Production co.

Seoul Chochiwon Daeduk Chonju Sunchon Yeochon Daelim Corporation Head office Plastic product division(Seoul office) Sales agent Chochiwon Daeduk Chochiwon plant Daeduk R & D center Chonju Chonju plant Sunchon Sunchon plant Yeochon Yeochon plant Yongsung plant Junghung plant Wotha plant

Petrochemical Business Plastic Products Business MANPOWER STATUS Total : 652 (2002.4.30) Petrochemical Business Plastic Products Business Head office 52 Head office 49 Yeochon plant 276 Chochiwon plant 77 R & D Center 40 Chonju plant 83 Sum 368 Wolha plant 52 Sunchon plant 23 Sum 284

PRODUCTION CAPACITY Product Location Application Capacity(MTA) HDPE 380,000 Yeochon Film, Injection Molding, Blow Molding, Stretched, Pipe, Rotational Molding Polybutene Yeochon Lubricants, Adhesives, Electrical Insulation, Fuel/Lube Additive Water pipe, Gas pipe, Sewage pipe, Geo sheet PIPE 37,000 Chochiwon OPP 23,000 Chonju Base Film, Co-extrusion film, Metalized Film, Matte Film Pearl Film, While Opaque Film Compound 71,000 Yeochon/ Sunchon HDPE Compound, PP Compound

SALES PLAN (Y2002) Quantity : 445,000 MTA Amount : U$ 342 Million HDPE 327,000 Amount : U$ 342 Million US 1$ = \1,250 Polybutene OPP 23,000 PE 332,000 Shared service 19 Compound 34 PIPE 24,000 PE 196 O4P 33 PIPE 37 PB 23 OPP 26,000 Compound 42,000

R & D ACTIVITIES AND SUCCESSES ◃ Process development ◃ Polymer research ◃ Plastic technology ◃ Analysis research ◃ Polybutene Production Technology - Awards : KT mark, IR52 Jang young shil ◃ Automotive Compound ◃ Wire & Cable Compound ◃ Flame Retardant Compound - Awards : KT mark, UL Flame Retardancy Certificate ◃ Light Decomposing Master Batch - Awards : Q mark, GP mark, DSET(TEST Lab in USA) Certificate ◃ Finecell Composite : a Master Batch of inorganic blowing agent ◃ Pipe & Geo – sheet Compound