Samsung 1998 Annual Report Download - page 62

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25. Cultivation of Professional Human Resources and Professional Training
The Company has operated a leadership development center, a high technology institute and a marketing institute. The Company
has cultivated domestic and overseas experts in each segment through the operation of these professional institutes and overseas
assignment of experts. Also, the Company provides employees with access to higher education programs in domestic and
overseas universities, academic research programs, in-house college of technology and the 21st century academy program.
26. Year 2000
The Company has commenced an evaluation of its potential commitments regarding the “Year 2000” date recognition issue in
computer systems. The evaluation will consider the Company’s responsibilities concerning the systems installed in the past with
customers, the situation of its internal systems, those of its key suppliers and the opportunities to transact new business. At this
time it is not possible to quantify the economic effect that may result from addressing this issue.
27. Subsequent Events
Per resolution of the Company’s board of directors’ meeting, 9,580,000 shares of common stock will be issued on February 12,
1999.
On February 1, 1999, the Company issued foreign currency convertible bonds of US$100 million at face value to Intel
Corporation in the United States. The bonds bear interest at 5% per annum, payable annually, maturing on February, 1, 2004.
On December 14, 1998, per resolution of the Company’s board of directors’ meeting, the Company transferred manufacturing
facilities of its Kwangju plant’s refrigerator manufacturing division to Kwanju Electronics Co., Ltd., for an interest of ￦94,883
million (Book value:￦82,067 million) in Kwangju Electronics Co., Ltd.
On January 1, 1999, the Company entered into an agreement with Atlantic Asset Securitization Corporation for issuance of asset
backed securities in the amount of US$ 100 million. The Company provided its export trade receivables as collateral for this
agreement.
On January 12, 1999, AST Research, Inc. (“AST”), affiliated company, and Alagem Enterprise LLC entered into a joint venture
agreement whereby AST will contribute its AST brand name and certain PC related patents to a newly established joint venture,
AST Computer, LLC.
28. Reclassification of 1997 Amounts
Certain amounts in the 1997 financial statements have been reclassified to conform to the 1998 presentation. These
reclassifications had no effect on previously reported net income and stockholder’s equity.
NOTES TO FINANCIAL STATEMENTS
61