LG 2003 Annual Report Download - page 92

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92
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
18. Capital Stock
Capital stock as of December 31, 2003 is as follows:
Number of Par value
shares issued per share Millions of Won
Common stock 139,606,263 ￦5,000 ￦698,031
Preferred stock (*) 17,185,992 5,000 85,930
156,792,255 ￦783,961
As of December 31, 2003 and 2002, the number of shares authorized is 600,000,000 shares.
(*) The preferred shareholders have no voting rights and are entitled to non-participating and non-cumulative preferred dividends at a rate of one
percentage point over those for common stock. This preferred dividend rate is not applicable to stock dividends.
19. Capital Surplus
As a result of the spin-off, on April 1, 2002, ￦1,876,153 million was recorded as capital surplus representing the
difference between net assets transferred from LG Electronics Investment Ltd. of ￦2,815,707 million and capital
stock of ￦783,961 million and capital adjustments transferred from LG Electronics Investment Ltd. of ￦155,593
million were recorded as a non-operating income and expense, respectively, for the year ended December 31,
2003.
As of December 31, 2003, the Company is named as the defendant in legal actions which were brought against
the Company by AVS Corporation in Canada and Mahmood Saleh Abbar Co. in Saudi Arabia. In addition, the
Company is named as the defendant or the plaintiff in various foreign and domestic legal actions arising from the
normal course of business. The aggregate amounts of domestic claims as the defendant and the plaintiff amounted
to approximately ￦2,931 million in thirteen cases and ￦618 million in three cases, respectively, as of December
31, 2003. The Company believes that the outcome of these matters is uncertain but, in any event, they would not
result in a material ultimate loss for the Company. Accordingly, no provision for potential losses arising from these
claims is reflected in the accompanying non-consolidated financial statements.
In common with certain other Asian countries, the economic environment in the Republic of Korea continues to
be volatile. In addition, the Korean government and the private sector continue to implement structural reforms to
historical business practices, including corporate governance. The Company may be either directly or indirectly
affected by these volatile economic conditions and the reform program described above. The accompanying non-
consolidated financial statements reflect management's assessment of the impact to date of the economic
environment on the financial position and results of operations of the Company. Actual results may differ materially
from management’s current assessment.