LG 2004 Annual Report Download - page 100

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
16. Accrued Severance Benefits
Changes in accrued severance benefits for the years ended December 31, 2004 and 2003, are as follows:
17. Commitments and Contingencies
As of December 31, 2004, the Company provided several notes and checks to financial institutions as collateral in relation to various
borrowings and guarantees of indebtedness.
As of December 31, 2004, the Company has various technical assistance agreements with various foreign companies for the
manufacture of certain product lines.
As of December 31, 2004, the Company has bank overdraft facility agreements with various banks amounting to 510,500 million.
As of December 31, 2004, the Company has sales agreements for export trade accounts receivable with various banks amounting to
4,858,304 million. The Company has corporate electronic settlement services contracts for collection of accounts receivable with
Hana Bank amounting to 180,000 million (Note 6).
As of December 31, 2004, the Company has corporate electronic settlement services contracts for payment of trade accounts payable
with various banks amounting to 880,000 million.
As of December 31, 2004, the Company has sales contracts with several companies, the undelivered portions of which amounted to
approximately 6,438 million for KT Corp., 1,519 million for Hanarotelecom Inc., 37,924 million for Public Telecommunication
Corporation in Yemen and others.
The severance benefits are funded at approximately 59.7% (2003: 61.8%) as of December 31, 2004 through employee severance
insurance plans with Kyobo Life Insurance Co., Ltd. and other life insurance companies. The severance insurance deposits, which are
amounts funded under employee severance insurance plans, are presented as a deduction from accrued severance benefits.
Beginning balance
Severance payments
Transfer-in from affiliated companies, net
Provisions
Severance insurance deposit
Contributions to the National Pension Fund
(in millions of Korean won)
2004
555,362
(114,516)
5,399
173,582
619,827
(370,240)
(16,341)
233,246
2003
500,909
(87,879)
6,582
135,750
555,362
(343,217)
(19,406)
192,739