LG 2004 Annual Report Download - page 92

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
As of December 31, 2004, the respective accumulated losses of equity investees from which the application of the equity method of
accounting has been suspended due to their accumulated losses are as follows:
Equity method of accounting had been suspended until December 31, 2003, for the investments in LG Electronics United Kingdom Ltd.
(LGEUK) and other subsidiaries, due to the zero book value of investments in those subsidiaries. In 2004, due to net income or issuance
of new shares, the losses of those subsidiaries which had not been recognized until December 31, 2003, amounting to 51,757 million,
were deducted from retained earnings.
As per the resolution of the Board of Directors dated July 2004, the Company invested 289,125 million (equivalent to US$ 250 million)
in LG Electronics Wales Ltd. (“LGEWA”) which, in turn, invested to its subsidiary, LG.Philips Displays Holding B.V.(“LPD”) according to
an agreement with the LPD’s creditor financial institutions. The other conditions in the said agreement included the deferment of loan
repayment and the reduction in the interest rate of the said loan. Further, the Company revoked previous guarantee for LPD and
provided the new guarantee of 57,825 million (equivalent to US$50 million).
LG Electronics Service Europe Netherlands B.V. (LGESE)
LG Electronics China Co., Ltd. (LGECH)
LG Infocomm U.S.A.Inc. (LGICUS), subsidiary of LG Electronics U.S.A., Inc.
LG Electronics Australia PTY, Ltd. (LGEAP)
LG Electronics Espana S.A. (LGEES)
LG Electronics United Kingdom Ltd. (LGEUK)
LG Goldstar France S.A.R.L. (LGEFS)
(in millions of Korean won)
22,565
18,397
9,874
4,141
4,138
3,990
1,040
64,145