The ILC physics working group is a mixture of experimentalists and theorists mainly working in Japan. It has its origin in the previous LC physics study group and has been reformed with the initiative of a JSPS Creative Scientific Research project: Research and Development of a Novel Detector System for the International Linear Collider. The working group is, however, formally independent of the JSPS project and is open to everybody who is interested in ILC physics. The primary task of the working group is to reexamine the ILC physics in the context of the expected LHC outcome and to further strengthen the physics case for the ILC project. The topics covered in the working group activities range from key measurements such as those of the Higgs self-coupling and the top Yukawa coupling to uncover the secrets of the electroweak symmetry breaking to various new physics scenarios like supersymmetry, large extra dimensions, and other models of terascale physics. The working group has held ten General Meetings in the period of May 2007 to June 2009 to discuss the topics mentioned above. This report ummarizes the progress made in this period and sets a milestone for future developments in ILC physics.
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