LG 2004 Annual Report Download - page 78

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
Overseas companies
Gemfire Corp. 7
Erlang Technology Inc. 1
Neopoint Inc. 1
E2OPEN.COM 1
COMMIT Incorporated
Monet Mobile Networks 1
SUNPOWER.INC
Others
Debt securities
Bonds issued by the government
Convertible bonds issued by
NeoDis Co., Ltd.
Commercial papers issued by
LG Card Co., Ltd
(in millions of Korean won)
-
-
-
-
4,990
-
1,257
507
27,617
27
2,204
19,062
21,293
64,383
2004
-
-
-
-
4,990
-
231
507
25,425
27
2,204
19,062
21,293
62,191
-
1,129
1,604
15,694
4,990
1,299
1,257
507
50,012
27
2,204
8,124
40,355
98,029
-
6.90
16.62
3.64
13.47
1.90
10.35
-
Percentage
of ownership (%)
at December
31,2004
Net asset
value/
Market value
Acquisition
cost
Carrying
value
-
1,129
-
15,694
4,990
1,299
1,257
507
43,499
856
2,204
-
3,060
246,668
2003
-
313
-
1,899
4,990
276
258
507
24,032
856
2,204
-
3,060
227,201
1,835
1,129
1,604
15,694
4,990
1,299
1,257
507
46,938
856
2,204
-
3,060
443,817
Net asset
value/
Market value
Acquisition
cost
Carrying
value
1. Carrying value was fully written down due to the negative net book value or bankruptcy of the investee company as of December 31, 2004.
2. As approved by the Board of Directors on February 6, 2004, the Company purchased LG card Co., Ltd.
(LG Card)’s commercial papers with a face value of 150,000 million as part of the fulfillment of LG Card’s business
normalization agreement with the creditor financial institutions. Upon the agreement with the creditors,
the commercial papers of 38,124 million, classified as long-term investment securities, are scheduled to be converted to equity of
LG Card and the remaining commercial papers amounting to 111,876 million are scheduled to be collected within December 31, 2005.
The Company recognized an impairment loss of 41,437 million on the said commercial papers for the year ended December 31, 2004 (Note 5).
3. During 2004, the Company disposed of all the shares of KT Corp., resulting in a loss of 18,697 million.
4. During 2004, the Company newly purchased the investments.
5. As per the resolution of the Board of Directors dated December 23, 2003, the Company entrusted its disposal and voting rights
for the 10,180,531 shares of the common stock of LG Investment & Securities Co., Ltd. to Woori Bank, the representative of the creditor banks,
as a part of the business normalization plan of LG Card. In April 2004, in accordance with the business normalization plan,
Korea Development Bank exercised its preemptive right to purchase the shares of LG Investment & Securities Co., Ltd. Accordingly,
the Company disposed of all its 10,180,531 shares, resulting in a loss from disposal of investment securities of 51,696 million.
6. During 2004, all the investment in Megaround Co., Ltd. were exchanged to investment in Jindoo Network Inc.,
marketable security because Megaround Co., Ltd. was merged by Jindoo Network Inc.
Gain on valuation of investment in Jindoo Network Inc. amounting to 1,250 million was recorded as capital adjustments.
7. During 2004, the Company disposed of the investments, resulting in gain on disposal of investment securities of 487 million.