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
(In millions of Korean won)
(In millions of Korean won)
(In millions of Korean won)
1. Others include amounts from changes in scope of consolidation and changes in foreign currency exchanges rates.
Balance at January 1, 2007
￦
2,976,819
￦
6,454,042
￦
19,141,537
￦
4,046,119
￦
1,166,098
￦
33,784,615
Acquisition 8,863 151,707 604,391 11,194,987 291,589 12,251,537
Transfer 303,629 1,686,516 9,631,007 (11,834,995) 213,843 -
Disposal (140,090) (43,424) (248,975) - (36,594) (469,083)
Depreciation - (492,301) (7,292,619) - (516,148) (8,301,068)
Others 1 5,109 43,618 85,680 (51,683) 31,919 114,643
Balance at December 31, 2007
￦
3,154,330
￦
7,800,158
￦
21,921,021
￦
3,354,428
￦
1,150,707
￦
37,380,644
Acquisition cost 3,154,330 10,437,714 56,737,095 3,354,428 3,342,031 77,025,598
Accumulated depreciation - (2,637,556) (34,816,074) - (2,191,324) (39,644,954)
Construction-
Buildings Machinery In-Progress/ Tools and
Land and and Machinery- Vehicles Total
Structures Equipment In-Transit
2007
In accordance with the Asset Revaluation Law, on January 1, 1980, 1982, 1998 and April 1, 1999, SEC revalued a substantial portion of its
property, plant, equipment and investments in equity securities by ￦3,051,612 million. The remaining revaluation increments amounting to
￦1,208,872 million, net of revaluation tax, credits to deferred foreign currency translation losses and others, were credited to capital surplus, a
component of equity. Also, in accordance with the Asset Revaluation Law, on October 1, 2000, Samsung Gwangju Electronics, an SEC
subsidiary, revalued a portion of its property, plant and equipment by ￦63,326 million. The remaining revaluation increments amounting to
￦62,145 million, net of revaluation tax, were credited to capital surplus, a component of equity.
As of December 31, 2008 and 2007, a certain portion of overseas subsidiaries’ property, plant and equipment amounting to ￦5,766 million
equivalent to US$4,585 thousand and ￦5,251 million equivalent to US$5,597 thousand, respectively is pledged as collaterals for various loans
from financial institutions.
Property, plant, equipment are insured against fire and other casualty losses, and business interruption losses of up to ￦85,564,185 million
(2007: ￦69,342,078 million) and ￦22,764,493 million (2007: ￦22,424,885 million), respectively as of December 31, 2008.
The value of land owned by the SEC and its domestic subsidiaries based on the posted price issued by the Korean tax authority amounted to
￦4,675,376 million (2007: ￦4,124,574 million) as of December 31, 2008.
As of December 31, 2008 and 2007, Samsung Card, an SEC subsidiary, recorded ￦690,187 million (2007: ￦626,731 million) of operating
lease assets, cancellation lease assets and prepaid finance lease assets acquired through the lease financing business (Note 8).
12. INTANGIBLE ASSETS
Intangible assets as of December 31, 2008 and 2007, consist of the following:
2008 2007
Goodwill
￦
9,885
￦
26,644
Intellectual property rights 405,848 314,901
Others 371,516 363,082
￦
787,249
￦
704,627
Amortization expense of the intangible assets for the years ended December 31, 2008 and 2007, is allocated to following accounts:
Account 2008 2007
Production costs
￦
32,801
￦
30,327
Selling and administrative expenses 123,661 89,774
Research and development expenses 83,200 76,173
￦
239,662
￦
196,274