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Contents [3] Foreword [4] Financial H
ighlights [8] CEO
’s Message [12] 2000 H
ighlights [13] Business P
ortfolios
[16] Hom
e Netw
orks [22] Mobile N
etworks [28
] Office N
etworks [34] Core Com
ponents [40] Vision in A
ction
[44] Sports S
ponsorship [46] Comm
unity Service [47] Financial R
eport [88
] Board of D
irectors [90] Global N
etwork
a strategy for leadership in the digital convergence revolution
At th
e sta
rt of o
ur 3
0th
an
nive
rsary ye
ar in
No
vem
be
r 199
9, w
e d
ed
icate
d o
urse
lves to
be
ing
at th
e
fore
fron
t of th
e d
igita
l con
verg
en
ce re
volu
tion
. No
w in
ou
r 31st, w
e’re
wo
rkin
g h
ard
to tu
rn th
at a
mb
itiou
s
com
mitm
en
t into
rea
lity thro
ug
h a
n in
itiative
we
call o
ur
strate
gy.
Th
e “d
igita
l” pa
rt of th
is strate
gy fo
cuse
s on
en
ha
ncin
g th
e va
lue
cha
in b
y rea
lign
ing
ou
r op
era
tion
s
into
fou
r ma
jor b
usin
ess p
ortfo
lios—
ho
me
ne
two
rks, m
ob
ile n
etw
ork
s, office
ne
two
rks, a
nd
core
com
po
ne
nts. T
he
“E
” or “e
lectro
nic” p
art a
ims to
crea
te a
solid
sup
po
rt fram
ew
ork
for th
ese
po
rtfolio
s
by o
ptim
izing
the
sup
ply ch
ain
to m
ak
e o
ur o
pe
ratio
ns a
s efficie
nt a
nd
time
ly as p
ossib
le.
So
, wh
ere
do
we
exp
ect th
is strate
gy to
tak
e u
s? All th
e w
ay to
the
top
in th
e ve
ry, very n
ea
r futu
re.
An
d e
veryo
ne
’s invite
d to
join
us!
03
Th
e ye
ar 2
00
0 p
rese
nte
d S
am
sun
g E
lectro
nics w
ith a
ho
st of e
xtern
al
cha
llen
ge
s. Bu
t eve
n re
cord
-hig
h o
il price
s, plu
mm
etin
g m
em
ory p
rices,
an
d fa
lterin
g te
chn
olo
gy se
ctor sto
cks co
uld
n’t sto
p u
s from
on
ce a
ga
in
reco
rdin
g o
ur b
est fin
an
cial p
erfo
rma
nce
eve
r.
20
00
199
9
Ca
pita
l Ra
tio6
0.2
%5
4%
De
bt to
Eq
uity R
atio
66
.1%8
5.3
%
Re
turn
on
Eq
uity R
atio
41%
31%
Ne
t De
bt E
qu
ity Ra
tio9
%3
3%
EB
ITD
A M
arg
in3
2%
27
%
Ea
rnin
gs p
er S
ha
re3
5,0
06
19
,214
US
$2
8U
S$
15
in m
illion
s of w
on
in m
illion
s of U
.S. d
olla
rs
20
00
199
92
00
019
99
Sa
les
34
,28
3,7
52
26
,117,7
86
27
,23
0.9
20
,74
4.9
Op
era
ting
Pro
fit7
,43
5,15
44
,48
1,50
05
,90
5.6
3,5
59
.6
Ne
t Inco
me
6,0
14,5
30
3,17
0,4
03
4,7
77
.22
,518
.2
To
tal A
ssets
26
,89
5,0
46
24
,70
9,8
03
21,3
62
.219
,62
6.5
To
tal Lia
bilitie
s10
,70
2,19
911,3
78
,23
48
,50
0.6
9,0
37
.5
Sh
are
ho
lde
rs’ Eq
uity
88
1,67
58
75
,54
27
00
.36
95
.4
• T
he
fina
ncia
l resu
lts in th
e a
bo
ve ta
ble
s are
for S
am
sun
g E
lectro
nics o
nly a
nd
do
no
t refle
ct the
resu
lts of its su
bsid
iarie
s or a
ffiliate
s.
• U
S$
am
ou
nts a
re co
nve
rted
at a
rate
of U
S$
1= 1,2
59
wo
n.
05
Du
ring
the
yea
r, sale
s climb
ed
ove
r 31%
, gro
ss pro
fit jum
pe
d o
ver 4
5%
,
op
era
ting
pro
fit soa
red
to 6
6%
, an
d n
et in
com
e sk
yro
cke
ted
to 9
0%
.
Wh
ile th
ese
imp
ressive
figu
res cle
arly sh
ow
solid
quantitativeg
row
th,
the
y also
sho
w o
utsta
nd
ing
qualitativeg
row
th, p
rovid
ing
un
eq
uivo
cal
pro
of th
at o
ur o
ng
oin
g e
fforts to
de
liver g
rea
ter va
lue
to o
ur cu
stom
ers,
pa
rtne
rs, a
nd
sh
are
ho
lde
rs h
av
e g
ive
n u
s a
so
lid, e
fficie
nt, a
nd
pro
fitab
le fin
an
cial stru
cture
tha
t’s seco
nd
to n
on
e.
06
Sales
For th
e 7
th stra
igh
t yea
r, we
led
the
do
me
stic
ma
nu
factu
ring
secto
r with
sale
s of 3
4.3
trillion
wo
n,
a 3
1.3%
incre
ase
ove
r 199
9. A
pp
roxim
ate
ly 68
% o
f
the
tota
l ca
me
from
inte
rna
tion
al m
ark
ets
,
rep
res
en
ting
12
% o
f Ko
rea
’s to
tal y
ea
r 20
00
ex
po
rts. T
he
Se
mic
on
du
cto
r Bu
sin
es
s G
rou
p
acco
un
ted
for 3
8%
(13 trillio
n w
on
), follo
we
d b
y the
Dig
ital M
ed
ia S
ystem
Bu
sine
ss Gro
up
with
27
% (9
.3
trillion
wo
n), th
e In
form
atio
n &
Co
mm
un
icatio
ns
Bu
sine
ss Gro
up
with
22
% (7
.6 trillio
n w
on
), an
d th
e
Ho
me
Ap
plia
nc
es
Bu
sin
es
s G
rou
p w
ith 8
% (2
.7
trillion
wo
n).
Gross P
rofit O
ng
oin
g re
structu
ring
an
d m
an
ag
e-
me
nt in
no
va
tion
ac
tivitie
s w
ere
be
hin
d th
e
rem
ark
ab
le 4
5.3
% g
row
th in
gro
ss
pro
fit to 12
.3
trillion
wo
n. T
he
ye
ar a
lso sa
w th
e o
verw
he
lmin
g
bia
s tow
ard
sem
icon
du
ctors b
eg
in to
shift to
wa
rd a
mo
re b
ala
nce
d p
rofit stru
cture
.
Operating Profit
Th
e 2
00
0 o
pe
ratin
g p
rofit o
f 7.4
trillion
wo
n w
as th
e h
igh
est in
com
pa
ny h
istory a
nd
an
ou
tsta
nd
ing
66
% im
pro
ve
me
nt o
ve
r 19
99
,
tran
slatin
g in
to a
n o
vera
ll pro
fit ma
rgin
of 2
2%
. Th
e
Se
mico
nd
ucto
r Bu
sine
ss Gro
up
led
with
81.5
% o
f
this
tota
l (6.1 trillio
n w
on
), an
ou
tsta
nd
ing
pro
fit
ma
rgin
of 4
7%
, follo
we
d b
y th
e In
form
atio
n &
Co
mm
un
icatio
ns B
usin
ess G
rou
p w
ith 12
.2%
(90
8
07
billio
n w
on
), the
Dig
ital M
ed
ia S
ys
tem
Bu
sin
es
s
Gro
up
with
7.1%
(52
5 b
illion
wo
n), a
nd
the
Ho
me
Ap
plia
nce
s Bu
sine
ss Gro
up
with
2.5
% (18
7 b
illion
wo
n).
Net incom
eIn
20
00
, ne
t inco
me
sho
t up
90
% to
just o
ver 6
trillion
wo
n. T
his p
rod
uce
d a
n e
qu
ally
rem
ark
ab
le 8
2%
rise
in E
PS
from
19,2
14 w
on
to
35
,00
6 w
on
. Th
e fa
ct tha
t ne
t inco
me
rose
ne
arly
90
%—
ne
arly trip
le th
e 3
1% in
crea
se in
sale
s—is a
so
lid in
dica
tor th
at w
e’v
e s
ucce
ss
fully
ma
de
the
tran
sitio
n
to
a
pro
fit-driv
en
o
rga
niz
atio
na
l
structu
re.
Return on EquityTo
tal sh
are
ho
lde
rs’ eq
uity ro
se to
16.2
trillion
wo
n fro
m 13
.3 trillio
n w
on
in 19
99
, a
21.5
% ye
ar-o
n-ye
ar in
crea
se. T
his a
s we
ll as stro
ng
sale
s he
lpe
d R
OE
jum
p fro
m 3
1% y
ea
r-on
-ye
ar to
41%
, pu
tting
us in
the
sam
e le
ag
ue
as th
e w
orld
’s
top
corp
ora
tion
s.
Deb
t to Equity
For th
e s
eco
nd
stra
igh
t ye
ar, w
e
too
k a
dv
an
tag
e o
f stro
ng
ea
rnin
gs
to trim
ou
r
ove
rall d
eb
t. In 2
00
0, w
e p
aid
ba
ck 1.6
trillion
wo
n,
slash
ing
ou
r 5.7
trillion
wo
n d
eb
t bu
rde
n b
y 28
% to
4.1 trillio
n w
on
. Th
is in tu
rn im
pro
ved
ou
r de
bt to
eq
uity
ratio
from
85
% in
199
9 to
66
%, la
yin
g a
stron
g fo
un
da
tion
for co
ntin
ue
d p
rofita
bility.
08
“Sam
sung Electronics is dedicated to leading
the digital convergence revolution…”
Dear Custom
ers, Partners, and Shareholders,
09
I am pleased to report that 2000 w
as Samsung Electronics’ best
year ever. During the year, our sales grew
over 31.3% to 34.3
trillion won. Even m
ore remarkable w
as the 66% rise in operating
profit to 7.4 trillion won, producing an outstanding 22%
operating
margin. Taken alone, these figures are an im
pressive testimony to
the success of our ongoing customer-driven efforts to enhance the
value of the Samsung brand as w
ell as our aggressive marketing and
pricing policies in markets w
orldwide. Taken in the context that
they and similarly im
pressive figures in 1998 and 1999 were
recorded in an environment m
arked by unfavorable economic
conditions at home and unclear econom
ic prospects abroad, they
10
are also unmistakable proof that the restructuring initiatives of the
past three years have helped lay a solid foundation for profitability.
But our w
ork is far from over.
As I have stated m
any times, the com
ing decade will bring
more changes to the w
ay we live, w
ork, and play than the entire
past century. And Sam
sung intends to be the driving force behind
as many of these changes as possible. O
ur ambitious plans for the
next five years call for us to more than double salesto 80 trillion
won as w
e aim for an operating m
argin of 15% in 2005. W
e also
intend to triple our brand value from U
S$5 billion to US$15
billion. I would like to share w
ith you now the m
aster strategy that
will m
ake this all possible.
On our 30th anniversary in N
ovember 1999, w
e made public
our vision of leading the digital convergence revolution. On our
31st in 2000, we announced how
we intend to translate this vision
into reality. Recognizing the critical role that digital convergence
and networking technology w
ill play in our success in this endeavor,
we have highlighted them
in the name of our new
master plan—
Digital- e
Com
pany—a strategy that seeks to m
aximize both
customer and corporate value through a com
prehensive solution-
and process-centric approach to enhancing the value chain and
optimizing the supply chain.
Our value chain focus is now
putting in place an integrated,
solution-focused organizational framew
ork where each of our
divisions is assigned to one of four synergetic business portfolios:
home netw
orks, mobile netw
orks, office networks, and core com
ponents.T
his reorganization will create a fertile internal clim
ate for synergy
and greater value as our divisions cooperate, share, and together
create digital solutionsfar superior to anything they could achieve
on their own.
Similarly, our supply chain focus now
reflects the simple reality
that value innovation is not just about developing the most
innovative products. It is about finding ways to enhance value at
every stepof the supply chain process—
from the research lab to
the marketing departm
ent. By applying e-processes to stream
line,
accelerate, and create opportunities for synergy within the business
process itself, we w
ill reap the benefits across the entire organiza-
tion, ultimately creating greater value for all. A
nd that will help us
more effectively achieve our m
ission of bringing innovation and
digital technology to all our products in ways that w
ill make life
easier, richer, and more enjoyable for all generations and all
customers. W
e call it Samsung D
igitall. And everyone’s invited.
I would like to close w
ith a sincere thank you for your support
during the past year that helped make 2000 our best year ever. W
e
look forward to bringing you even better new
s in 2001.
11
Jong-Yong YYunV
ice C
ha
irma
n a
nd
CE
O
12
Septem
ber 15-30
Wh
ile o
ur la
test m
ob
ile
ph
on
es h
elp
ke
ep
the
Olym
pic G
am
es ru
nn
ing
smo
oth
ly, we
pla
y ho
st
to o
ver 1.1 m
illion
Syd
ne
y Olym
pic P
ark
visitors. O
ur O
lymp
ic
Re
nd
ezvo
us@
Sa
msu
ng
pa
vilion
pro
vide
s a
un
iqu
e sh
ow
case
for o
ur
late
st mo
bile
com
mu
ni-
catio
ns te
chn
olo
gy, a
con
ven
ien
t ga
the
ring
pla
ce fo
r ath
lete
s an
d
the
ir fam
ilies, a
nd
a fu
ll
da
ily pro
gra
m o
f cultu
ral
pe
rform
an
ces a
nd
en
ter-
tain
me
nt fo
r all.
Septem
ber 29
We
de
bu
t the
wo
rld’s
faste
st gra
ph
ics me
mo
ry
chip
. Fab
ricate
d w
ith
0.17
-micro
n te
chn
olo
gy,
the
128
Mb
do
ub
le-d
ata
-
rate
SD
RA
M ch
ip is
cap
ab
le o
f mo
ving
da
ta
at 5
00
Mb
ps, a
two
-an
d-
a-h
alf-fo
ld in
crea
se in
pe
rform
an
ce o
ver o
ur
pre
viou
s faste
st offe
r-
ing
. Th
e ch
ip w
ill pla
y a
ke
y role
in o
ur co
ntin
ue
d
do
min
an
ce in
the
gra
ph
-
ics me
mo
ry ma
rke
t, an
are
a w
he
re w
e cu
rren
tly
ho
ld a
40
%-p
lus m
ark
et
sha
re.
October 10
Ou
r tech
no
log
y spe
cifi-
catio
n fo
r dig
ital im
ag
e
com
pre
ssion
is acce
pte
d
into
the
pa
ten
t po
ol fo
r
MP
EG
-4, a
ne
xt-ge
ne
ra-
tion
com
pre
ssion
tech
-
no
log
y de
sign
ed
to
shrin
k m
ultim
ed
ia co
n-
ten
t do
wn
to co
mp
act,
hig
h-q
ua
lity da
ta
strea
ms th
at ca
n b
e
smo
oth
ly bro
ad
cast o
ver
the
Inte
rne
t or to
3G
mo
bile
ph
on
es.
Septem
ber 7
We
intro
du
ce th
e
wo
rld’s first cd
ma
20
00
mo
bile
ph
on
e. T
he
first
step
tow
ard
glo
ba
l 3G
mo
bile
com
mu
nica
tion
s,
the
SC
H-X
100
cellu
lar
an
d S
PH
-X10
00
PC
S
ph
on
es o
ffer fu
ll ba
ck-
wa
rd co
mp
atib
ility with
existin
g cd
ma
On
e n
et-
wo
rks, u
p to
10x h
igh
er
da
ta sp
ee
ds fo
r service
s
like
au
dio
- an
d vid
eo
-on
-
de
ma
nd
, an
d 3
0%
lon
ge
r talk
an
d 10
0%
lon
ge
r stan
db
y time
s.
We
also
de
mo
nstra
te a
com
ple
te cd
ma
20
00
system
du
ring
the
Syd
ne
y Olym
pic G
am
es.
Novem
ber 1
We
ma
rk o
ur 3
1st
an
nive
rsary b
y un
veilin
g
ou
r Dig
ital-E
Co
mp
an
y
strate
gy to
gu
ide
us a
s
we
wo
rk to
be
com
e th
e
lea
de
r of th
e d
igita
l con
-
verg
en
ce re
volu
tion
. Th
e
go
al o
f this stra
teg
y is to
bu
ild o
n th
e su
ccess o
f
ou
r reo
rga
niza
tion
effo
rts ove
r the
pa
st
thre
e ye
ars to
tak
e o
ur
org
an
izatio
n to
the
ne
xt
leve
l, focu
sing
on
valu
e
inn
ova
tion
in b
oth
the
valu
e a
nd
sup
ply ch
ain
s
to p
rop
el o
urse
lves to
the
top
of th
e in
du
stry in
20
05
.
2000H
igh
ligh
ts
January 4
We
de
velo
p th
e w
orld
’s
first 28
8M
b R
am
bu
sT
M
DR
AM
. De
sign
ed
with
0.17
-micro
n p
roce
ss
tech
no
log
y, this n
ew
RD
RA
M o
ffers th
e h
igh
-
est b
an
dw
idth
of a
ny
curre
nt m
em
ory te
chn
ol-
og
y. Up
to 16
of th
ese
28
8M
b ch
ips ca
n b
e
com
bin
ed
to cre
ate
me
mo
ry mo
du
les o
f up
to 5
76
MB
. RD
RA
M is
use
d p
rima
rily in h
igh
-
en
d P
en
tium
4-b
ase
d
wo
rksta
tion
s, PC
s, an
d
ga
me
con
sole
s.
May 1
We
join
AM
D, C
om
pa
q,
Ga
tew
ay, H
itach
i, HP
,
Infin
eo
n, N
EC
, Qu
an
tum
,
SC
I Syste
ms, S
ole
ctron
,
an
d W
este
rn D
igita
l to
form
eH
ITE
X, a
n in
de
-
pe
nd
en
t on
line
B2
B m
ar-
ke
tpla
ce fo
cuse
d o
n
crea
ting
a h
igh
-tech
sup
-
ply ch
ain
for th
e co
mp
ut-
ing
an
d e
lectro
nics
ind
ustrie
s. In D
ece
mb
er,
the
na
me
cha
ng
es to
Co
nve
rge
as th
e co
nso
r-
tium
mo
ves to
acq
uire
NE
CX
, a g
lob
al tra
din
g
exch
an
ge
op
era
tor w
ith
a tra
din
g vo
lum
e
exce
ed
ing
US
$1 b
illion
.
May 15
We
pro
du
ce o
ur 10
mil-
lion
th T
FT-LC
D to
da
te.
En
terin
g th
e fie
ld in
199
5, w
e’ve
led
the
com
-
pe
tition
since
199
8 w
ith
ove
r 20
% o
f the
glo
ba
l
ma
rke
t. In Fe
bru
ary, w
e
intro
du
ce th
e
Wise
Vie
wT
Mlo
go
to
incre
ase
ou
r bra
nd
visi-
bility, a
nd
in A
ug
ust w
e
ad
d a
4th
-ge
ne
ratio
n
pro
du
ction
line
tha
t will
pu
sh a
nn
ua
l pro
du
ction
cap
acity fro
m 8
millio
n
14-in
ch p
an
el e
qu
iva-
len
ts in 2
00
0 to
ne
arly
15 m
illion
in 2
00
1.
June 13
We
an
no
un
ce a
strate
gic
pa
rtne
rship
with
Micro
soft to
crea
te
Inte
rne
t-savvy 2
G, 2
.5G
,
an
d 3
G m
ob
ile p
ho
ne
s.
Th
e a
gre
em
en
t cove
rs
bo
th G
SM
an
d C
DM
A
fea
ture
ph
on
es b
ase
d o
n
the
Micro
soft M
ob
ile
Exp
lore
r wire
less co
m-
mu
nica
tion
s pla
tform
as
we
ll as th
e M
icroso
ft
sma
rt ph
on
e p
latfo
rm
wh
ich in
teg
rate
s the
fun
ction
ality o
f a P
DA
into
sligh
tly larg
er fo
rm
facto
r. Ou
r first pro
du
ct
from
this a
llian
ce d
eb
uts
in D
ece
mb
er.
June 22
H.M
. Kin
g Ju
an
Ca
rlos I
ina
ug
ura
tes o
ur first
GS
M p
ho
ne
pla
nt in
Eu
rop
e. T
he
Ba
rcelo
na
,
Sp
ain
pla
nt’s tw
o p
ro-
du
ction
line
s be
ga
n
turn
ing
ou
t ou
r SG
H-6
00
an
d S
GH
-24
00
mo
bile
ph
on
es in
Jan
ua
ry. Wh
en
com
ple
ted
in 2
00
2, th
e
pla
nt w
ill ha
ve 11 p
ro-
du
ction
line
s, em
plo
y
mo
re th
an
1,00
0 lo
cal
wo
rke
rs, an
d p
rod
uce
som
e 7
.5 m
illion
un
its
an
nu
ally, 8
0%
for sa
le
ou
tside
of S
pa
in.
The power to lead a revolution
It tak
es a
spe
cial co
mb
ina
tion
of ca
pa
bilitie
s an
d re
sou
rces to
lea
d th
e d
igita
l con
verg
en
ce re
volu
tion
.
At S
am
sun
g, w
e b
elie
ve w
e’ve
go
t the
critical m
ass o
f
tech
no
log
y, facilitie
s, pe
rson
ne
l, pa
rtne
rship
s, an
d ca
pita
l
ne
ed
ed
to co
mp
ete
with
an
d b
ea
t the
wo
rld’s b
est. B
ack
ed
by
ou
r lea
de
rship
in k
ey co
re co
mp
on
en
t field
s, we
inte
nd
to se
t
the
pa
ce fo
r ind
ustry in
no
vatio
n in
ho
me
ne
two
rks, m
ob
ile
ne
two
rks, a
nd
office
ne
two
rks in
to th
e in
de
finite
futu
re.
We
lcom
e to
Sa
msu
ng
Dig
itall. Wh
ere
eve
ryon
e’s in
vited
.
more inside… «
Mobile N
Hom
e Netw
orks
Ou
r ad
van
ced
dig
ital a
ud
io a
nd
vide
o te
chn
olo
gy co
ntin
ue
s to k
ee
p
us o
n th
e cu
tting
ed
ge
of h
om
e th
ea
ter w
ith a
full lin
eu
p o
f hig
h-
pe
rform
an
ce H
DT
Vs, S
DT
Vs, a
nd
DV
D p
laye
rs. We
’ve a
lso b
ee
n
bre
ak
ing
ne
w g
rou
nd
in th
e h
om
e a
pp
lian
ces fie
ld b
y ad
din
g d
igita
l
fun
ction
ality a
nd
ne
two
rkin
g ca
pa
bilitie
s as w
e p
articip
ate
in th
e
crea
tion
of th
e d
igita
l ho
me
ne
two
rk in
frastru
cture
tha
t’ll brin
g a
wh
ole
ne
w le
vel o
f com
fort a
nd
con
ven
ien
ce to
life.
Yo
u m
ay h
ave
he
ard
tha
t we
’ve b
mo
bile
ph
on
e m
ak
er fo
r fou
r yea
r
did
n’t k
no
w th
at w
e w
ere
am
on
g
ph
on
es a
nd
system
s tha
t’ll ha
nd
l
ph
on
es h
an
dle
voice
. Oth
er m
ob
i
no
teb
oo
k P
Cs, P
DA
s, dig
ital ca
me
de
sign
ed
to h
elp
ke
ep
you
org
an
A digit allportfolio of solutions
Sa
msu
ng
Ele
ctron
ics is the
wo
rld le
ad
er in
com
pu
ter m
em
ory, T
FT-LC
D a
nd
CD
T m
on
itors, D
VD
-RO
M
an
d co
mb
ina
tion
CD
-RW
/DV
D-R
OM
drive
s, micro
wa
ve o
ven
s, an
d C
DM
A m
ob
ile p
ho
ne
s as w
ell a
s a
top
-ten
pla
yer in
CD
-RO
M a
nd
IDE
ha
rd d
rives, co
lor T
Vs, V
CR
s, an
d D
VD
pla
yers. O
ur le
ad
ersh
ip in
core
com
po
ne
nt te
chn
olo
gie
s in e
ach
of th
ese
pro
du
ct cate
go
ries is th
e syn
erg
istic force
tha
t’s no
w
drivin
g o
ur o
the
r thre
e d
igita
l bu
sine
ss po
rtfolio
s.
Office N
etworks
Netw
orks
be
en
the
wo
rld’s N
o. 1 C
DM
A
rs run
nin
g. B
ut yo
u p
rob
ab
ly
the
first to d
eve
lop
3G
mo
bile
le vid
eo
as e
asily a
s tod
ay’s 2
G
ile n
etw
ork
offe
ring
s inclu
de
era
s, an
d co
rdle
ss ph
on
es, a
ll
ized
an
d in
tou
ch.
With
som
e o
f the
larg
est, sh
arp
est scre
en
s ava
ilab
le, S
am
sun
g T
FT-
LCD
flat-p
an
el a
nd
CD
T fla
t-scree
n d
ispla
ys are
ea
sily the
hig
he
st-
pro
file p
rod
ucts in
this p
ortfo
lio. W
e a
lso m
ak
e a
full ra
ng
e o
f
com
pu
ters a
nd
pe
riph
era
ls inclu
din
g h
ard
drive
s, com
bin
atio
n
DV
D/C
D-R
W d
rives, fa
x ma
chin
es, la
ser a
nd
ink
-jet p
rinte
rs,
mu
ltifun
ction
prin
ters, a
nd
bu
sine
ss com
mu
nica
tion
s solu
tion
s
tha
t will m
ak
e a
ny o
ffice n
etw
ork
mo
re p
rod
uctive
an
d e
fficien
t.
17
Wh
at’s o
n to
da
y’s me
nu
? Ho
w a
bo
ut 4
2 in
che
s of p
lasm
a
go
od
ne
ss de
livere
d to
you
r tab
le. B
ut it co
uld
just a
s ea
sily be
serve
d u
p o
n a
wa
ll. Or e
ven
the
ceilin
g. Y
ou
see
, this isn
’t just
you
r ord
ina
ry kin
d o
f me
al. It’s a
dig
ital sm
org
asb
ord
tha
t’s a
fea
st for th
e e
yes. B
on
ap
pé
tit!
SPK-4215 42-inch 16:9 Plasm
a TV
Th
ere
’s simp
ly no
oth
er w
ay to
ge
t a b
igg
er, fla
tter p
icture
ha
ng
ing
on
you
r wa
ll. Or a
nyw
he
re e
lse fo
r tha
t ma
tter.
Cool Multim
ediaO
ur to
p-o
f-the
-line
SR
-127
DT
L
refrig
era
tor k
ee
ps yo
ur fo
od
fresh
as it k
ee
ps yo
u in
tou
ch,
en
terta
ine
d, a
nd
org
an
ized
with
Inte
rne
t acce
ss, vide
o-
ph
on
e ca
pa
bility, T
V re
cep
tion
,
recip
e file
, sche
du
ler, a
nd
a
dig
ital p
ho
to a
lbu
m.
Video Convergence
Loo
kin
g to
rep
lace
an
ag
ing
VC
R o
r set u
p a
ho
me
the
ate
r?
Ou
r ne
w S
V-D
VD
1E co
mb
ina
-
tion
DV
D p
laye
r an
d V
HS
reco
rde
r will le
t you
do
bo
th
with
a sin
gle
com
pa
ct un
it.
Gently Pow
erful CookingW
ith 1,10
0-w
atts o
f coo
kin
g
po
we
r, 10 p
ow
er le
vels, a
nd
ou
r exclu
sive va
riab
le-p
ow
er
Ge
ntle
Co
ok
tech
no
log
y, the
MW
85
93
G b
ring
s a w
ho
le n
ew
leve
l of co
ok
ing
con
trol to
the
kitch
en
.
Internet Comm
unicatorA
s simp
le to
use
as a
tele
-
ph
on
e, o
ur se
con
d-g
en
era
tion
An
ywe
b™
We
b p
ho
ne
will h
elp
tak
e co
mp
ute
rless In
tern
et
acce
ss, e-m
ail, a
nd
IP te
le-
ph
on
y ma
instre
am
with
mo
re
me
mo
ry, a fa
ster p
roce
ssor,
an
d a
full co
mp
lem
en
t of d
igi-
tal m
ed
ia in
terfa
ces.
18
“The fully automated hom
e has been a technophile’s dream since the
1960s. Today, Samsung’s m
aking it a digital reality with the w
orld’s first
home netw
ork solution to use Internet protocols to seamlessly link
virtually any electric-powered device im
aginable…. A
nd that’ll make hom
ean even sw
eeter place to be.”
—Jae-M
oon Jo, Senior Manager, D
igital Media R
&D
Center
19
In Ja
nu
ary 2
00
1, we
pu
blicly d
em
on
strate
d o
ur T
CP
/IP-
ba
sed
dig
ital h
om
e n
etw
ork
con
cep
t for th
e first tim
e a
t the
Co
nsu
me
r Ele
ctron
ics Sh
ow
in La
s Ve
ga
s, US
A. W
ith th
e
ne
two
rk in
frastru
cture
an
d p
roto
col sta
nd
ard
s no
w in
pla
ce, w
e’ll b
e a
ccele
ratin
g d
eve
lop
me
nt w
ork
on
ne
two
rk-
rea
dy e
lectro
nics a
nd
ap
plia
nce
s to fu
lly exp
loit o
ur
com
pe
titive a
dva
nta
ge
in th
e fie
ld. O
ur iZ
Zi W
eb
We
bp
ad
is
just a
taste
of th
e u
pco
min
g B
lue
too
th-e
na
ble
d In
tern
et
ap
plia
nce
s ou
r en
gin
ee
rs are
wo
rkin
g o
n th
at w
ill intro
du
ce
the
Inte
rne
t to a
wh
ole
ne
w ca
teg
ory o
f con
sum
ers.
Ou
r lea
de
rship
in d
igita
l disp
lay te
chn
olo
gy w
ill
con
tinu
e to
pa
ve th
e w
ay fo
r big
ge
r, brig
hte
r, thin
ne
r, an
d
sha
rpe
r TV
s. Th
ese
inn
ova
tion
s in m
an
ufa
cturin
g
tech
no
log
y as w
ell a
s dig
ital se
rvices w
ill en
ab
le u
s to
bre
ak
into
the
top
-3 in
20
01 w
ith a
ma
rke
t sha
re e
xcee
din
g
10%
.In h
om
e a
pp
lian
ces, w
e’ll e
xten
d o
ur m
ark
et
lea
de
rship
in m
icrow
ave
ove
ns b
y bo
ostin
g p
rod
uctio
n
cap
acity, fo
cusin
g o
n h
igh
-ma
rgin
recre
atio
na
l veh
icle a
nd
com
me
rcial m
od
els, a
nd
exp
an
din
g sa
les ch
an
ne
ls to m
ajo
r
reta
il cha
ins w
orld
wid
e. O
ur re
frige
rato
r line
up
is also
pro
jecte
d to
con
tinu
e its h
igh
do
ub
le-d
igit g
row
th, fo
cusin
g
on
hig
h-m
arg
in sid
e-b
y-side
an
d sp
ecia
lized
refrig
era
tors
for k
ee
pin
g fe
rme
nte
d fo
od
s, me
at, a
nd
fruit fre
sh.
In 2
00
0, w
e m
ain
tain
ed
ou
r No
. 5 p
ositio
n w
ith 8
.5%
of th
e g
lob
al T
V m
ark
et a
s we
ma
de
histo
ry by
ship
pin
g o
ur 10
0 m
illion
th co
lor T
V. O
ur n
ew
65
-inch
CR
T p
roje
ction
an
d 5
0-in
ch LC
oS
(liqu
id-crysta
l-on
-
silicon
) pro
jectio
n T
Vs re
ceive
d In
no
vatio
ns 2
00
0
aw
ard
s at C
ES
20
00
, wh
ile o
ur 2
4-in
ch T
FT-LC
D T
V
wo
n a
n iF P
rod
uct D
esig
n A
wa
rd fro
m In
du
strie Fo
rum
De
sign
. In th
e D
VD
pla
yer ca
teg
ory, w
e ro
se to
No
. 3 in
the
ma
rke
t, sellin
g 2
.5 m
illion
un
its to se
cure
a g
lob
al
15.5
% sta
ke
as w
e sh
ipp
ed
the
wo
rld’s first h
ybrid
ga
me
con
sole
an
d V
HS
VC
R p
laye
rs. We
also
sign
ed
on
with
U.S
. sate
llite b
roa
dca
ster D
irecT
V to
sup
ply
HD
TV
-cap
ab
le se
t-top
bo
xes ca
pa
ble
of re
ceivin
g b
oth
sate
llite a
nd
terre
strial a
na
log
an
d d
igita
l bro
ad
casts.
It wa
s a b
an
ne
r yea
r for h
om
e a
pp
lian
ces a
s
micro
wa
ve o
ven
sale
s rose
ove
r 24
%, p
rop
ellin
g u
s
into
the
glo
ba
l No
. 1 po
sition
for th
e first tim
e. B
est-
selle
rs in so
me
20
cou
ntrie
s, ou
r micro
wa
ves n
ow
com
ma
nd
a 2
5%
ma
rke
t sha
re. R
efrig
era
tor sa
les
we
re a
lso u
p 2
5%
as o
ur h
igh
-ma
rgin
side
-by-sid
e a
nd
spe
cialize
d m
od
els e
njo
yed
hig
h d
ou
ble
-dig
it gro
wth
.
Ou
r dig
ital h
om
e n
etw
ork
strate
gy to
ok
a m
ajo
r
step
forw
ard
with
the
arriva
l of iZ
Zi W
eb
, the
wo
rld’s
first Inte
rne
t ap
plia
nce
to d
elive
r wire
less a
ccess
usin
g B
lue
too
th te
chn
olo
gy. P
art o
f a fle
xible
, mo
du
lar
system
, this in
no
vative
We
bp
ad
pro
mise
s to ch
an
ge
ho
w p
eo
ple
surf th
e W
eb
. An
d co
ntro
l the
ir ho
me
s.
20
2
Hom
e Surfer
Su
rfing
the
Inte
rne
t use
d to
tie
you
do
wn
to a
de
sk. B
ut w
ith o
ur
ne
w iZ
Zi W
eb
wire
less W
eb
pa
d in
ha
nd
, you
r en
tire h
om
e w
ill
be
com
e yo
ur su
rfing
gro
un
d.
The space-saving, pearl-white Tantus 32-inch H
DTV
will brighten any
room it’s in. A
nd with the w
orld’s shallowest 32-inch picture tube, it’ll
take up about 20% less space than a standard 32-inch and about the
same as a 20-inch. K
ey features include a built-in DTV
tuner, Dolby
Pro Logic surround sound, and a second-generation progressive-scan
circuit that delivers silky-smooth m
otion with dram
atically improved
noise reduction for the ultimate view
ing experience.
0%thinner...
In th
e co
mp
etitive
wo
rld o
f mo
bile
ha
ute
cou
ture
, Sa
msu
ng
con
sisten
tly stea
ls
the
sho
w w
ith w
orld
-first de
sign
s. Like
ph
on
es w
ith a
bu
ilt-in T
V, M
P3
pla
yer,
dig
ital ca
me
ra, o
r eve
n a
mo
bile
vide
oco
nfe
ren
cing
cen
ter. A
nd
tha
t’s wh
at
ma
ke
s the
m g
rea
t en
terta
ine
rs as w
ell a
s gre
at co
mm
un
icato
rs.
3G M
obile PhoneIt’s a
mu
ltime
dia
futu
re. A
nd
ou
r 3G
ph
on
es w
ill let yo
u se
e, h
ea
r, an
d in
tera
ct with
it wh
ere
ver yo
u g
o.
23
24
“In 1996, Samsung introduced cdm
aOne 2G
digital mobile com
muni-
cations to the world. In 2000, w
e made history again by delivering the
world’s first cdm
a2000 1x solution as we continued to pioneer the w
ay
to global 3G m
obile comm
unications. Our m
ission is simple—
we
intend to be the world’s w
ireless comm
unications solution leader.”
—K
i-Hw
a Choi, Senior Engineer, RF/ System
Laboratory Guinness Candidate
Ou
r first-ge
ne
ratio
n S
PH
-WP
10
wristw
atch
ph
on
e m
ad
e it in
to
the
20
01 G
uinness Book
. Ou
r
sma
ller a
nd
ligh
ter se
con
d-g
en
-
era
tion
SP
H-S
100
ma
y be
the
first mo
bile
you
we
ar.
MP3 W
ith Vision
Yo
ur m
usic is p
orta
ble
, wh
y no
t
you
r ph
oto
s? Ou
r YV
P-P
64
Ye
pp
Inte
rne
t au
dio
pla
yer is
the
wo
rld’s first to
let yo
u
sha
re d
igita
l ph
oto
s an
d te
xt
wh
en
you
’re o
n th
e g
o.
Sound SenseA
t 19.8
mm
thin
an
d 1.3
5 k
g
ligh
t, the
aw
ard
-win
nin
g
NV
50
00
/Se
ns 7
60
no
teb
oo
k
with
the
wo
rld’s first in
te-
gra
ted
-bu
t-ind
ep
en
de
nt M
P3
pla
yer is a
con
verg
en
ce p
rod
-
uct th
at tru
ly rock
s.
GSM
Turns 2.5G
SM
is also
be
gin
nin
g th
e tra
n-
sition
to 3
G. O
ur S
GH
-Q10
0 is
the
wo
rld’s fa
stest G
PR
S p
ho
ne
to d
elive
r en
ha
nce
d In
tern
et
an
d d
ata
service
s at 2
.5G
spe
ed
s of u
p to
115 k
bp
s.
25
In 2
00
1, we
’ll con
tinu
e w
ork
on
the
com
mu
nica
tion
s
tech
no
log
ies th
at’ll m
ak
e u
s a le
ad
er in
tom
orro
w’s g
lob
al
3G
mo
bile
mu
ltime
dia
ne
two
rks. W
e’ll la
un
ch o
ur first
CD
MA
an
d G
SM
ph
on
es b
uilt o
n th
e M
icroso
ft sma
rt
ph
on
e p
latfo
rm, g
iving
use
rs sea
mle
ss acce
ss to n
ext-
ge
ne
ratio
n w
irele
ss info
rma
tion
an
d e
nte
rtain
me
nt
service
s. We
’ll also
exp
an
d o
ur cd
ma
20
00
1x an
d G
PR
S
mo
bile
ph
on
e o
fferin
gs.
Du
ring
the
yea
r, we
exp
ect o
ur cd
ma
20
00
1x ne
two
rk
solu
tion
to b
e d
ep
loye
d n
atio
nw
ide
in K
ore
a. A
s pa
rt of
ou
r ma
rke
t dive
rsificatio
n e
fforts, w
e’ll a
lso co
ntin
ue
wo
rk
on
ne
two
rk so
lutio
ns fo
r W-C
DM
A, th
e 3
G m
igra
tion
cho
ice fo
r tod
ay’s G
SM
ne
two
rks.
Sa
msu
ng
no
teb
oo
k P
Cs w
ill con
tinu
e to
ge
t ligh
ter,
thin
ne
r, an
d fa
ster in
the
com
ing
yea
r. We
inte
nd
to
ma
inta
in o
ur co
mm
an
din
g 5
0%
ma
rke
t sha
re a
t ho
me
as
we
bu
ild o
n o
ur im
pre
ssive 10
0%
sale
s gro
wth
tha
t
pu
she
d o
verse
as re
ven
ue
s to U
S$
3.3
billio
n in
20
00
. Ou
r
Ye
pp
Inte
rne
t au
dio
pla
yer a
nd
Ne
xca d
igita
l cam
era
line
s
will a
lso co
ntin
ue
to g
ain
con
verg
en
ce fe
atu
res a
nd
con
ne
ctivity op
tion
s tha
t will e
mp
ow
er th
em
to b
eco
me
eve
n m
ore
active
pa
rticipa
nts in
tom
orro
w’s m
ob
ile
ne
two
rks.
26
No.
SCH-X120 cdm
a2000 Mobile Phone
As th
e m
ak
er o
f the
wo
rld's first
cdm
a2
00
0 1x m
ob
ile p
ho
ne
, we
con
tinu
e to
roll o
ut n
ew
up
scale
mo
de
ls like
the
SC
H-X
120
tha
t are
he
lpin
g b
ring
the
pro
mise
of tru
e
glo
ba
l 3G
com
mu
nica
tion
s on
e
step
close
r in style
.
27
Sam
sung continues to lead in CDM
A
mobile com
munications technology, an
area we helped pioneer w
ith the world’s
first comm
ercial service in 1996. We’ve
sold the world’s m
ost CDM
A-based
cellular and PCS phones for the past four
years running. And w
hat’s even more
gratifying is the fact that our SCH
-3500
was the best-selling phone in the U
.S. in
2000, capturing an amazing 28
% m
arket
share as it helped us surpass the 10-
million-unit sales m
ilestone in that
market in just three short years.
In 2
00
0, w
e le
d th
e g
lob
al C
DM
A p
ho
ne
ind
ustry fo
r a
fou
rth stra
igh
t yea
r as w
e sh
ipp
ed
a n
ew
line
up
of
con
verg
en
ce p
ho
ne
s with
MP
3 p
laye
r, TV
, dig
ital
cam
era
, an
d In
tern
et fu
nctio
na
lity. In a
first for a
ny
Ko
rea
n-m
ad
e p
rod
uct, w
e m
ad
e it in
to th
e 2
00
1
ed
ition
of th
e G
uinness Book of W
orld Recordsfo
r the
wo
rld’s sm
alle
st cell p
ho
ne
TV
(SC
H-M
22
0) a
nd
wristw
atch
ph
on
e (S
PH
-WP
10). W
e a
lso in
trod
uce
d
the
wo
rld’s first cd
ma
20
00
an
d fa
stest G
PR
S p
ho
ne
s,
he
rald
ing
the
arriva
l of 2
.5G
mo
bile
com
mu
nica
tion
s
service
s.
Du
ring
the
yea
r, we
tea
me
d u
p w
ith 3
Co
m to
de
velo
p th
e w
orld
’s first 3G
ne
two
rk so
lutio
n b
ase
d
on
cdm
a2
00
0 1x te
chn
olo
gy. B
ack
wa
rdly co
mp
atib
le
with
existin
g cd
ma
On
e n
etw
ork
s, the
ne
w syste
m
ma
de
the
wo
rld’s first cd
ma
20
00
1x test ca
ll in M
ay
an
d w
as d
ep
loye
d in
the
Se
ou
l me
trop
olita
n a
rea
with
com
me
rcial se
rvice sta
rting
Octo
be
r 1. Fea
ture
s of th
e
ne
w syste
m in
clud
e d
ou
ble
the
cha
nn
el ca
pa
city an
d
da
ta ra
tes o
f up
to 14
4 k
bp
s.
En
joyin
g 10
0%
gro
wth
in sa
les in
20
00
, we
con
tinu
ed
to m
ak
e p
orta
ble
com
pu
ting
eve
n m
ore
con
ven
ien
t with
the
lau
nch
of n
ew
hig
hly-ra
ted
line
of
Pe
ntiu
m III n
ote
bo
ok
s. We
also
con
tinu
ed
to e
xpa
nd
ou
r line
of d
igita
l cam
era
s, ad
din
g 1.3
- an
d 2
.1-
me
ga
pixe
l mo
de
ls with
3x o
ptica
l zoo
m a
nd
1.8-in
ch
colo
r LCD
scree
ns.
1in
CDM
A
CDM
A Goes 2.5G
Ou
r com
pre
he
nsive
cdm
a2
00
0 1x so
lutio
n
allo
ws e
xisting
cdm
aO
ne
cellu
lar a
nd
PC
S
op
era
tors to
sea
mle
ssly up
gra
de
the
ir
ne
two
rks w
itho
ut d
ow
ntim
e o
r ba
ckw
ard
-
com
pa
tibility issu
es.
29
Th
ese
da
ys, you
alm
ost h
ave
to b
e a
futu
rist to k
ee
p u
p th
e b
rea
kn
eck
pa
ce o
f
tech
no
log
y. Sa
msu
ng
is wo
rkin
g to
sho
w e
veryo
ne
the
“big
pictu
re” o
f wh
ere
tech
no
log
y is he
ad
ed
, em
po
we
ring
pe
op
le to
exp
ress th
em
selve
s in n
ew
wa
ys on
scree
n, o
n p
ap
er, o
n o
ptica
l me
dia
, an
d o
n th
e In
tern
et. G
et th
e p
icture
?
SyncMaster 240T 24-inch TFT-LCD
Monitor
Ea
sily disp
layin
g tw
o A
4-size
pa
ge
s side
-by-sid
e w
ith ro
om
to sp
are
, this m
assive
flat-
pa
ne
l mo
nito
r will ch
an
ge
the
dyn
am
ics of d
esk
top
com
pu
ting
.
Enterprising Comm
unicationsT
od
ay’s b
usin
esse
s are
loo
kin
g fo
r a co
mp
reh
en
sive,
inte
gra
ted
com
mu
nica
tion
s
solu
tion
. An
d th
e In
foM
ob
ile
PB
X d
elive
rs it with
sea
mle
ss,
scala
ble
sup
po
rt for C
DM
A
wire
less, vo
ice-o
ver-IP
, da
ta,
an
d sta
nd
ard
ph
on
e n
etw
ork
s.
Digital Im
agemaker
Ou
r ne
w N
exca
SD
C-2
00
Z
ma
ke
s cap
turin
g th
ose
spe
cial
mo
me
nts e
asy w
ith 2
.11-
me
ga
pixe
l reso
lutio
n, five
inte
llige
nt e
xpo
sure
mo
de
s, a
6x zo
om
(3x o
ptica
l/2x d
igita
l),
an
d a
brig
ht 1.8
-inch
TFT
-LCD
disp
lay.
Page Burner
Prin
ting
at 3
5 p
pm
, the
ML-
35
50
A3
-ove
rsize b
usin
ess
lase
r pro
mise
s to o
utru
n th
e
com
pe
tition
in sp
ee
d, fe
atu
res,
an
d to
tal co
st of o
wn
ersh
ip.
All-In-Wonder
With
an
86
6-M
Hz P
en
tium
III,
30
GB
ha
rd d
rive, a
nd
the
wo
rld’s first 1,4
00
x 1,05
0-p
ixel
15-in
ch T
FT-LC
D d
ispla
y, the
aw
ard
-win
nin
g M
150
0 is th
e
ultim
ate
all-in
-on
e d
esk
top
com
pu
ter.
30
“The world is flat. A
t least the monitor w
orld of the future is. And Sam
sung
is a leader in bringing flat-screen CDT and flat-panel TFT-LCD
monitors to
the desktop. Our latest developm
ent is a 24-inch TFT-LCD m
onitor with a
record-setting WU
XGA
resolution of 1,920 x 1,200 pixels that’ll give
computer users plenty of room
to create their own flat digital w
orlds.”
—B
yung-Woo K
ang, Vice P
resident, Flat Panel D
isplay R&
D Team
31
In 2
00
1, we
’ll con
tinu
e to
cha
llen
ge
the
limits o
f disp
lay
tech
no
log
y as w
e d
elive
r the
clea
rest, sh
arp
est, m
ost
erg
on
om
ic visua
l acce
ss to o
ffice n
etw
ork
s with
the
mo
st-ad
van
ced
CD
T a
nd
TFT
-LCD
mo
nito
rs ava
ilab
le.
Th
ese
flag
ship
pro
du
cts will co
ntin
ue
to e
nh
an
ce th
e
Syn
cMa
ster b
ran
d im
ag
e a
s we
mo
un
t a m
ajo
r ma
rke
ting
pu
sh to
cap
ture
25
% o
f the
ma
rke
t ba
cke
d b
y a n
ew
fou
rth-g
en
era
tion
TFT
-LCD
ma
nu
factu
ring
line
tha
t’ll
bo
ost o
utp
ut to
3 m
illion
un
its an
nu
ally.
In th
e d
esk
top
PC
cate
go
ry, ou
r ma
rke
t lea
de
rship
in
virtua
lly eve
ry ma
jor co
mp
on
en
t are
a w
ill en
sure
we
ma
inta
in a
50
%-p
lus sh
are
of th
e K
ore
an
ma
rke
t in th
e
com
ing
yea
r. We
also
pla
n to
step
up
ma
rke
ting
of o
ur
Ma
gicS
tatio
n P
C b
ran
d in
inte
rna
tion
al m
ark
ets, fo
cusin
g
on
lea
din
g-e
dg
e p
rod
ucts lik
e th
e a
ll-in-o
ne
M15
00
with
a
hig
h-re
solu
tion
1,40
0 x 1,0
50
SX
GA
+ T
FT-LC
D d
ispla
y.
20
01 w
ill also
ma
rk o
ur fu
ll-scale
en
tran
ce in
to th
e
bu
sine
ss lase
r cate
go
ry with
the
mid
-yea
r de
bu
t of th
e
ML-3
55
0 3
5-p
pm
A3
-ove
rsize la
ser p
rinte
r. With
un
iqu
e
fea
ture
s like
stan
da
rd fu
ll-spe
ed
du
ple
x prin
ting
an
d th
e
low
est co
st-pe
r-pa
ge
in th
e cla
ss, this p
rinte
r en
gin
e w
ill
also
pa
ve th
e w
ay fo
r ou
r en
try into
the
hig
h-sp
ee
d
dig
ital co
pie
r field
be
fore
yea
r-en
d.
19%
In 2
00
0,w
e o
nce
ag
ain
do
min
ate
d th
e g
lob
al m
on
itor
ma
rke
t with
a 19
% sta
ke
. Ou
r gro
win
g S
yncM
aste
r
flat-scre
en
CD
T a
nd
flat-p
an
el T
FT-LC
D lin
eu
p w
on
a
rem
ark
ab
le to
tal o
f 20
0 to
p ra
ting
s in m
ag
azin
es
wo
rldw
ide
. Am
on
g th
e n
ew
arriva
ls du
ring
the
yea
r
we
re th
e 2
00
0 ID
EA
Silve
r Aw
ard
-win
nin
g 15
0M
P a
nd
170
MP
mu
ltime
dia
TFT
-LCD
s, a 2
2-in
ch fla
t-scree
n C
DT
mo
nito
r, the
wo
rld’s first 2
4-in
ch T
FT-LC
D, a
nd
ou
r
first LCD
pro
jecto
r with
a p
ow
erfu
l 2,4
00
-lux o
utp
ut.
Du
ring
the
yea
r, we
exte
nd
ed
ou
r lea
d in
the
Ko
rea
n d
esk
top
PC
cate
go
ry to 4
3.6
% o
f the
ma
rke
t.
Ou
r Ma
gicS
tatio
n d
esk
top
s con
tinu
ed
to k
ee
p p
ace
with
the
ind
ustry tre
nd
s with
1-GH
z PIII a
nd
P4
pro
cesso
rs, hig
h-te
ch stylin
g, a
nd
an
all-in
-on
e d
esig
n
with
the
ind
ustry’s h
igh
est-re
solu
tion
15-in
ch LC
D.
In 2
00
0, w
e e
xpa
nd
ed
ou
r lea
d in
the
com
pu
ter
stora
ge
ma
rke
t, cap
turin
g 2
5%
of th
e D
VD
-RO
M a
nd
30
% o
f the
com
bin
atio
n C
D-R
W/D
VD
-RO
M d
rive
cate
go
ries. O
ur S
pin
Po
int h
ard
drive
cap
acitie
s also
con
tinu
ed
the
ir rap
id g
row
th, d
ou
blin
g to
40
GB
.
Prin
ters a
nd
fax m
ach
ine
s are
an
incre
asin
gly
imp
orta
nt p
art o
f ou
r office
ne
two
rk stra
teg
y. Th
e ye
ar
saw
us la
un
ch th
e w
orld
’s first flatb
ed
mu
ltifun
ction
ink
-jet p
rinte
r with
a b
uilt-in
Sm
artM
ed
ia™
me
mo
ry
card
inte
rface
as w
ell a
s the
iF Pro
du
ct De
sign
Aw
ard
-
win
nin
g M
L-45
00
an
d M
L-46
00
lase
r prin
ters.
32
Multim
edia Goes Flat
Fea
turin
g a
TV
tun
er, p
icture
-in-p
icture
,
an
d in
pu
ts for a
ny a
na
log
vide
o so
urce
,
the
171M
P b
ring
s a sh
arp
, stylish 1,2
80
x
1,02
4-p
ixel m
ultim
ed
ia vie
win
g e
xpe
ri-
en
ce to
an
y de
skto
p.
Topping the sales lists in 29 nations, Sam
sung moni-
tors were hooked up to alm
ost one out of every five
computers sold w
orldwide in 2000. The international
media liked them
even more, aw
arding a total of 130
and 43 top ratings to our CDT and LCD
monitor fam
i-
lies during the year. And as the year cam
e to a close,
we m
arked yet another milestone as w
e shipped our
100 millionth m
onitor to date.
SyncMaster 740 D
FT 17-Inch Monitor
Sa
msu
ng
brin
gs D
yna
Flat fla
t-scree
n te
chn
olo
gy
to a
ne
w p
rice-p
oin
t in th
is stylish n
ew
pa
cka
ge
.
market share
33
35
We’re turning m
anufacturers on to the essence of the digital age.
It do
esn
’t tak
e m
uch
con
tem
pla
tion
to re
alize
sem
icon
du
ctors a
re th
e life
-force
of th
e
ele
ctron
ics ind
ustry. S
am
sun
g d
erive
s gre
at in
ne
r stren
gth
from
ind
ustry le
ad
ersh
ip in
com
pu
ter m
em
ory a
nd
LCD
disp
lays a
s we
ll as a
rap
idly in
crea
sing
sha
re o
f the
system
-
on
-chip
an
d o
ptica
l stora
ge
de
vice m
ark
ets. A
nd
ele
ctron
ics ma
nu
factu
rers w
orld
wid
e
are
find
ing
tha
t fact ve
ry en
ligh
ten
ing
.
Alpha 21264a 833-M
Hz M
icroprocessorS
pe
ctacu
lar b
an
dw
idth
an
d a
cho
ice o
f eith
er U
nix o
r Linu
x op
era
ting
system
s are
just tw
o o
f
the
rea
son
s ou
r 64
-bit A
lph
a p
roce
ssors a
re fo
un
d in
som
e o
f tod
ay’s h
igh
est-p
erfo
rma
nce
Wafers G
row U
pO
ur n
ew
12-in
ch w
afe
r
fab
ricatio
n te
chn
olo
gy w
ill
allo
w u
s to p
rod
uce
ove
r twice
as m
an
y chip
s pe
r wa
fer a
s
tod
ay’s 8
-inch
line
s, givin
g u
s a
ma
jor co
mp
etitive
ad
van
tag
e
as th
e in
du
stry mo
ves to
hig
he
r-ma
rgin
25
6M
b a
nd
512
Mb
chip
s.
Cards With Sm
artsW
he
the
r it’s facilita
ting
e-
com
me
rce, b
uild
ing
custo
me
r
loya
lty, pa
ying
for a
ph
on
e ca
ll
or b
us fa
re, o
r simp
ly pro
vidin
g
ide
ntifica
tion
, ou
r full-ra
ng
e o
f
con
tact a
nd
con
tactle
ss sma
rt
card
s are
the
pe
rfect so
lutio
n.
Mobile H
igh-Definition
Th
e n
ext g
en
era
tion
of
cdm
a2
00
0 1x a
nd
GP
RS
mo
bile
ph
on
es a
re m
ak
ing
vide
o-o
n-
the
-go
a re
ality. O
ur n
ew
hig
h-
reso
lutio
n 7
20
x 24
0-p
ixel
po
ly-silicon
refle
ctive T
FT-LC
D
en
sure
s the
view
ing
exp
erie
nce
is as sh
arp
an
d
clea
r as p
ossib
le.
More M
emory To G
oLe
ap
ing
from
0.18
-micro
n to
0.15
-micro
n te
chn
olo
gy in
just
a six-m
on
th p
erio
d, w
e
bo
oste
d o
ur N
AN
D fla
sh m
em
-
ory ch
ip ca
pa
cities fro
m 2
56
Mb
to 5
12M
b w
ith th
e w
orld
’s
sma
llest d
ie size
to d
ate
. An
d
0.12
-micro
n is ju
st aro
un
d th
e
corn
er.
36
“The networked m
ultimedia future is going to require lots of m
emory. In
2000, we developed the w
orld’s first 0.10-micron process technology for
the next generation of 4Gb D
RA
M chips…
. This technology will soon be
dramatically increasing per-w
afer yields of our 128Mb and 256M
b chips
as we lead the industry in introducing higher-capacity, higher-m
argin512M
b and 1Gb chips.”
—Su-Jin A
hn, Senior Engineer, Technology Developm
ent Team
37
In 2
00
1, we
’ll con
tinu
e to
pu
sh o
ur fa
brica
tion
pro
cess
tech
no
log
y be
low
the
0.10
-micro
n le
vel a
nd
ad
d 12
-inch
fab
ricatio
n te
chn
olo
gy a
s we
aim
for sig
nifica
nt n
ew
eco
no
mie
s of sca
le. O
ur co
ntin
uo
us p
ursu
it of h
igh
er-
cap
acity, h
igh
er-m
arg
in m
em
ory p
rod
ucts w
ill ke
ep
us
com
forta
bly N
o. 1 in
this a
rea
. In p
articu
lar, a
strate
gic
allia
nce
with
Inte
l will p
rovid
e u
s with
the
fun
din
g fo
r
ne
cessa
ry testin
g a
nd
valid
atio
n e
qu
ipm
en
t tha
t will
he
lp u
s bo
ost o
utp
ut o
f third
-ge
ne
ratio
n 12
8M
b R
DR
AM
to 10
millio
n ch
ips m
on
thly in
ea
rly 20
01 a
nd
20
millio
n
in th
e se
con
d h
alf o
f the
yea
r, givin
g u
s a m
ark
et sh
are
of o
ver 5
0%
in th
is hig
h-p
erfo
rma
nce
me
mo
ry are
a.
Du
ring
the
yea
r, we
’ll con
tinu
e o
ur d
iversifica
tion
into
no
n-m
em
ory se
mico
nd
ucto
r field
s to re
du
ce o
ur
exp
osu
re to
vola
tile m
em
ory m
ark
ets. Fo
cusin
g o
n th
e
system
-on
-chip
, LCD
drive
r IC, a
nd
sma
rt card
field
s,
ou
r system
larg
e-sca
le in
teg
ratio
n b
usin
ess w
ill
con
cen
trate
on
solid
gro
wth
op
po
rtun
ities w
ith e
xisting
cash
-cow
as w
ell a
s ne
w h
igh
-ma
rgin
pro
du
cts.
Ha
nd
-in-h
an
d w
ith o
ng
oin
g w
ork
on
larg
er, h
igh
er-
reso
lutio
n T
FT-LC
Ds, w
e’ll a
lloca
te m
ore
reso
urce
s on
sma
ll an
d m
ed
ium
-size LC
D d
eve
lop
me
nt to
me
et
incre
asin
g d
em
an
d fo
r hig
he
r-qu
ality d
ispla
ys for P
DA
s,
mo
bile
ph
on
es, In
tern
et a
pp
lian
ces, a
nd
oth
er p
orta
ble
dig
ital d
evice
s.
0.13-mi
38
In 2
00
0, w
e m
ark
ed
ou
r 8th
con
secu
tive ye
ar a
t the
top
of th
e m
em
ory b
usin
ess, ca
ptu
ring
21%
of th
e
DR
AM
an
d th
e S
RA
M m
ark
ets. A
mo
ng
the
yea
r’s ke
y
de
velo
pm
en
ts we
re a
0.12
-micro
n 5
12M
b S
DR
/DD
R
DR
AM
, 128
MB
Sm
artM
ed
ia™
flash
me
mo
ry card
, 50
0-
Mb
ps 12
8M
DD
R S
DR
AM
, 0.17
-micro
n 2
88
Mb
RD
RA
M,
0.15
-micro
n 5
12M
b N
AN
D fla
sh m
em
ory, a
nd
0.10
-
micro
n p
roce
ss tech
no
log
y tha
t’ll pa
ve th
e w
ay fo
r
Mem
ory Breaks 1 G
Hz
Ou
r ne
w 0
.17-m
icron
tech
no
log
y
ha
s bo
oste
d th
e sp
ee
d o
f ou
r
third
-ge
ne
ratio
n R
DR
AM
me
mo
ry
chip
s by o
ver 3
0%
from
80
0 M
Hz
to 1,0
66
MH
z as w
ell a
s incre
ase
d
pe
r-wa
fer yie
lds b
y 25
%.
cronleader
When w
e unveiled the world’s first 1G
b DD
R D
RA
M
in mid-1999, it becam
e the first mem
ory chip to use
0.13-micron process technology, the first D
RA
M chip
to operate at 350 MH
z, and the smallest 1G
b chip
with a 30%
to 40% sm
aller die size. This ground-
breaking technology dramatically im
proved our
cost-competitiveness in 2000, m
ore than doubling
per-wafer yields of our 64M
b, 128M
b and 256Mb
chips as it removed the im
mediate need to invest in
expensive 12-inch wafer lines.
39
ne
xt-ge
ne
ratio
n 4
Gb
de
vices.
In n
on
-me
mo
ry field
s, we
focu
sed
on
ho
nin
g o
ur
com
pe
titive e
dg
e d
urin
g th
e ye
ar a
s we
de
velo
pe
d
Rig
ht W
are
, the
ind
ustry’s first C
AD
softw
are
de
sign
too
l for syste
m la
rge
-scale
inte
gra
tion
chip
s. In
ad
ditio
n to
he
lpin
g u
s red
uce
the
initia
l stag
e o
f chip
de
velo
pm
en
t time
by a
t lea
st 20
%, R
igh
t Wa
re w
ill
save
us a
pp
roxim
ate
ly US
$2
millio
n a
nn
ua
lly in
softw
are
licen
sing
fee
s.
Du
ring
the
yea
r, we
also
ma
inta
ine
d o
ur N
o. 1
ran
kin
g in
the
TFT
-LCD
ind
ustry fo
r a 3
rd stra
igh
t
yea
r with
a 2
0.1%
ma
rke
t sha
re, re
cord
ing
US
$3
billio
n in
sale
s as p
rod
uctio
n su
rpa
ssed
6.11 m
illion
pa
ne
ls. Ea
rly in th
e ye
ar, w
e re
intro
du
ced
ou
r TFT
-
LCD
pa
ne
l line
up
un
de
r the
Wise
Vie
w™
na
me
to
stren
gth
en
ou
r bra
nd
ing
as w
e ro
lled
ou
t a 2
-inch
13
Samsung Electronics is an electronics industry leader w
ith 66,000em
ployees and operations in some 50 countries around the globe.
We’re currently the w
orld’s top-selling brand in six core productareas—
mem
ory chips, TFT-LC
Ds, com
puter monitors, m
icro-w
ave ovens, DV
D-R
OM
drives, and CD
MA
mobile phones—
and a top-ten player in numerous others.
Our Sem
iconductor Business G
roup maintained a com
m-
anding 20% m
arket share in the DR
AM
, SRA
M, and T
FT-LCD
markets in 2000 as w
e continued to diversify into non-mem
oryareas to reduce our exposure to m
emory m
arket volatility, focusingon high-grow
th, high-margin areas such as sm
all and medium
-sizeT
FT-LCD
s, smart cards, and system
-on-chip products.O
ur Information &
Com
munications B
usiness Group stayed
No. 1 in C
DM
A phone sales during the year as w
e introduced thew
orld’s first 2.5G G
PRS and cdm
a2000 1x mobile phones,
marking an
important first step in the m
igration to global 3Gm
obile service. We dem
onstrated a complete w
orking solution forcdm
a2000 1x at the Sydney Olym
pic Gam
es as well as supplying
all the wireless com
munications equipm
ent and technicalassistance to ensure the w
orld’s greatest sports festival went as
smoothly as possible. W
e also acquired TL 9000 certification—
thecom
munications indus- try’s equivalent of ISO
9001—for our
entire wired and w
ireless product lineup, including the world’s first
in the radio access network equipm
ent and phone software
categories.
41
Our D
igital Media System
and Hom
e Appliances B
usiness Groups
continued to move aw
ay from single-function, low
-margin com
modity
products to multifunction, high-m
argin convergence products like acom
bination DV
D player/V
HS recorder, an M
P3 player capable ofstoring and displaying digital photos, and the w
orld’s thinnest notebookPC
with an industry-first integrated-but-independent M
P3 player. We
also marked our 10th straight year at the top of the com
puter monitor
category with 19%
of the global market and our first in the m
icrowave
oven category, shipping over 7 million units to capture 25%
of the world
market.
The record-breaking financial perform
ance we achieved in 2000 w
asa culm
ination of several factors. Our ongoing restructuring efforts since
the 1997 Korean financial crisis and a select-and-focus strategy helped us
make a total com
mitm
ent to investing in growth businesses and exiting
marginal ones. O
perational innovations also played a key role as we suc-
cessfully reengineered and systemized business processes around custom
ersand m
arkets.D
uring the year, we achieved our global supply chain m
anagement
goal of order fulfillment w
ithin five days for all monitor, m
emory, and
TFT-LC
D m
odule products, a system w
e’re now in the process of expand-
ing to our audio/video, home appliance, m
obile phone, and printerproduct lines. In addition to com
pleting implem
entation of a global ER
Psystem
at 70 worksites for real-tim
e access to logistics and financial infor-m
ation throughout our global manufacturing and sales netw
orks , we also
carried out 720 Six Sigma projects and added 3,800 black belts to our
ranks as we significantly im
proved both product quality and customer
satisfaction on our way to a cost savings of 180 billion w
on.
42
Expanded investm
ent in R&
D in 2000 enhanced our ability to
proacti vely respond to changing markets and custom
er requirements. W
einvested 1.8 billion w
on or 5.3% of sales—
a 12.5% year-on-year increase
in mone- tary term
s—in developing tom
orrow’s digital netw
ork techno-logies at our nine-center global R
&D
network. O
ur staff of 13,000engineers w
as hard at work adding links to the value chain and acquiring
key Internet techno- logies as it created new convergence products and
enhanced our capability to leverage the latest developments in the rapidly
changing digital landscape. B
uilding on accomplishm
ents in recent years that have includedparticipation in the developm
ent of the 4.7 GB
DV
D specification and
the contribution of three MPE
G-2 technologies to the M
PEG
-LA patent
pool, we continued to steadily m
ove from standard-adopter to standard-
maker by contributing a technology specification for digital im
age comp-
ression to the MPE
G-4 patent pool in 2000 as w
e accelerated ourpioneering developm
ent work in the 3G
mobile com
munications and
double-data-rate DR
AM
fields. These efforts helped us w
in 1,442 US
patents during the year, making us the N
o. 4 innovator in the world’s
biggest technology market for a third consecutive year.
Individually and collectively, the achievements m
entioned above havehelped set the stage for the next phase of our corporate grow
th—value
innovation. We expect our D
igital -C
ompany strategy launched in late
2000 to have a profound impact on our bottom
line in 2001 as we focus
our considerable resources on creating tomorrow
’s digital technologies andsolutions as w
ell as building a cutting-edge global supply chain manage-
ment system
that’ll rapidly move us tow
ard our goal of leading the digitalconvergence revolution.
43
e
If you
wa
nt to
rea
ch co
nsu
me
rs wo
rldw
ide
, you
’ve g
ot to
spe
ak
the
ir lan
gu
ag
e. A
t Sa
msu
ng
, we
’ve sp
en
t the
pa
st
two
de
cad
es b
eco
min
g flu
en
t in th
e u
nive
rsal “la
ng
ua
ge
” of sp
orts, sp
on
sorin
g a
gro
win
g n
um
be
r of in
tern
atio
na
l
eve
nts in
clud
ing
the
pre
stigio
us S
am
sun
g N
atio
ns C
up
eq
ue
strian
tea
m ch
am
pio
nsh
ip se
ries, th
e A
sian
Ga
me
s,
Sa
msu
ng
Ru
nn
ing
Festiva
l 5 k
m fu
n ru
ns, a
nd
do
zen
s of p
rofe
ssion
al a
nd
am
ate
ur sp
orts te
am
s wo
rldw
ide
. Bu
t
ou
r big
ge
st an
d m
ost m
ea
nin
gfu
l invo
lvem
en
t with
spo
rts is ou
r succe
ssful re
latio
nsh
ip w
ith th
e O
lymp
ic Mo
ve-
me
nt a
s the
Wo
rldw
ide
Wire
less C
om
mu
nica
tion
s Eq
uip
me
nt P
artn
er o
f the
Olym
pic G
am
es.
An O
lympic Rendezvous w
ith Samsung
Sin
ce 19
97
, we
’ve h
elp
ed
ke
ep
the
Olym
pic G
am
es ru
nn
ing
smo
oth
ly with
state
-of-th
e-a
rt wire
less co
mm
un
i-
catio
ns te
chn
olo
gy. H
ow
eve
r, ou
r pre
sen
ce a
t the
20
00
Syd
ne
y Ga
me
s wa
s mu
ch m
ore
tha
n ju
st ab
ou
t mo
bile
ph
on
es a
nd
two
-wa
y rad
ios. O
ur O
lymp
ic Re
nd
ezvo
us@
Sa
msu
ng
pa
vilion
in O
lymp
ic Pa
rk d
rew
mo
re th
an
1.1
millio
n visito
rs, givin
g a
thle
tes a
pla
ce to
rela
x, spe
ctato
rs en
terta
inm
en
t from
aro
un
d th
e w
orld
, an
d e
veryo
ne
an
up
-close
loo
k a
t ho
w S
am
sun
g 3
G m
ob
ile co
mm
un
icatio
ns te
chn
olo
gy w
ill cha
ng
e th
eir fu
ture
. We
loo
k fo
rwa
rd to
brin
gin
g th
e w
orld
eve
n clo
ser to
ge
the
r at th
e u
pco
min
g 2
00
2 S
alt La
ke
Win
ter G
am
es a
nd
20
04
Ath
en
s Su
mm
er
©Y
on
Ha
p
At S
am
sun
g, co
rpo
rate
citizen
ship
is a re
spo
nsib
ility we
tak
e ve
ry serio
usly. R
eco
gn
ized
by th
e W
ash
ing
ton
D.C
.-
ba
sed
Po
ints o
f Ligh
t Fou
nd
atio
n in
199
8 w
ith th
e p
restig
iou
s Aw
ard
for E
xcelle
nce
in C
orp
ora
te C
om
mu
nity S
ervice
,
we
con
tinu
e to
active
ly de
velo
p p
rog
ram
s an
d su
pp
ort th
e o
ver 10
,00
0 e
mp
loye
es w
ho
volu
nte
er th
eir tim
e to
he
lp
the
disa
ble
d a
nd
disa
dva
nta
ge
d, p
rote
ct the
en
viron
me
nt, a
nd
pro
mo
te co
mp
ute
r litera
cy to m
ak
e th
eir lo
cal
com
mu
nitie
s be
tter p
lace
s to live
. In 2
00
0, w
e re
ach
ed
ou
t to th
e w
orld
’s less fo
rtun
ate
child
ren
by co
ntrib
utin
g 6
00
millio
n w
on
to U
NE
SC
O th
at w
ill be
use
d to
fun
d e
du
catio
na
l pro
gra
ms fo
r ne
ed
y child
ren
in 15
cou
ntrie
s wo
rldw
ide
.
Volunteers Make A
ll the Difference
Financial Report 2000
[48] Report of Independent A
ccountants
[49] Balance S
heets
[52] Statements of Incom
e
[53] Statements of A
ppropriations of Retained Earnings
[54] Statements of Cash Flow
s
[56] Notes to Financial Statem
ents
*T
he
fina
ncia
l resu
lts in th
e fo
llow
ing
rep
ort a
re fo
r Sa
msu
ng
Ele
ctron
ics on
ly
an
d d
o n
ot re
flect th
e re
sults o
f its sub
sidia
ries o
r affilia
tes.
As o
f De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
AS
SETS
Cu
rren
t asse
ts:
Ca
sh a
nd
cash
eq
uiva
len
ts (No
te 4
)521,883,690
526,829,785$414,522
$418,451S
ho
rt-term
fina
ncia
l instru
me
nts (N
ote
4)
1,409,879,711648,343,188
1,119,841514,967
Ma
rke
tab
le se
curitie
s (No
te 5
)673,340,493
237,450,347534,822
188,602T
rad
e a
ccou
nts a
nd
no
tes re
ceiva
ble
,
less a
llow
an
ce fo
r do
ub
tful
acco
un
ts of
129
,40
4,9
61,0
00
in 2
00
0 a
nd
13
3,8
90
,311,0
00
in 19
99
(No
te 6
)1,162,483,845
1,334,971,347923,339
1,060,343O
the
r acco
un
ts an
d n
ote
s rece
ivab
le,
less a
llow
an
ce fo
r do
ub
tful
acco
un
ts of
15,2
32
,211,0
00
in 2
00
0 a
nd
2
9,13
1,35
4,0
00
in 19
99
659,700,104690,544,173
523,987548,486
Inve
nto
ries (N
ote
7)
2,802,763,6252,261,379,652
2,226,1821,796,171
Accru
ed
inco
me
88,277,06021,614,484
70,11717,168
Ad
van
ce p
aym
en
ts, less a
llow
an
ce
for d
ou
btfu
l acco
un
ts of
14,3
46
,07
4,0
00
in 2
00
0 a
nd
74
5,0
90
,00
0 in
199
944,286,594
84,940,45735,176
67,467G
ua
ran
tee
de
po
sits160,287,992
171,716,625127,314
136,391O
the
r233,538,148
219,441,221185,494
174,299T
ota
l curre
nt a
ssets
7,756,441,2626,197,231,279
$6,160,794$4,922,345
Pro
pe
rty, pla
nt a
nd
eq
uip
me
nt,
inclu
din
g re
valu
ed
po
rtion
,
ne
t of a
ccum
ula
ted
de
pre
ciatio
n (N
ote
8)
12,324,428,6499,822,251,279
$9,789,062$7,801,629
Eq
uity in
vestm
en
ts (No
te 9
)5,409,741,103
6,050,044,4574,296,856
4,805,436
Lon
g-te
rm fin
an
cial in
strum
en
ts, rece
ivab
les
an
d o
the
r asse
ts (No
tes 4
, 6 a
nd
10)
1,226,228,9721,559,748,944
973,9711,238,879
De
ferre
d in
com
e ta
x asse
ts (No
te 19
)178,206,497
1,080,526,923141,546
858,242
To
tal a
ssets
26,895,046,48324,709,802,882
$21,362,229$19,626,531
Continued;
The accompanying notes are an integral part of these statem
ents.
Balance S
heets
49
As o
f De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
LIABILITIES AN
D SH
AREH
OLD
ERS’ EQ
UITY
Cu
rren
t liab
ilities:
Tra
de
acco
un
ts an
d n
ote
s pa
yab
le1,492,046,020
1,405,008,718$1,185,104
$1,115,972O
the
r acco
un
ts an
d n
ote
s pa
yab
le1,697,547,216
1,613,961,6321,348,330
1,281,939S
ho
rt-term
bo
rrow
ing
s (No
te 11)
14,21749,511
1139
Cu
rren
t ma
turitie
s of lo
ng
-term
de
bt,
ne
t of d
iscou
nts a
nd
pre
miu
ms
on
de
be
ntu
res (N
ote
s 12 a
nd
13)
2,357,173,6861,396,329,672
1,872,2591,109,078
Accru
ed
exp
en
ses
1,162,008,323733,624,266
922,961582,704
Divid
en
ds p
aya
ble
(No
te 16
)422,741,482
342,729,389335,776
272,224In
com
e ta
xes p
aya
ble
(No
te 19
)896,957,557
606,942,742712,437
482,083O
the
r579,960,001
682,225,510460,651
541,880T
ota
l curre
nt lia
bilitie
s8,608,448,502
6,780,871,440$6,837,529
$5,385,919
Lon
g-te
rm d
eb
t, less cu
rren
t
ma
turitie
s (No
te 12
)493,102,602
2,933,429,090$391,662
$2,329,968
Fore
ign
curre
ncy n
ote
s an
d
bo
nd
s (No
te 13
)1,210,765,542
1,415,529,449961,688
1,124,328
Oth
er lo
ng
-term
liab
ilities
245,146,335160,902,912
194,715127,802
Accru
ed
seve
ran
ce b
en
efits,
ne
t of tra
nsfe
r to th
e
Na
tion
al P
en
sion
Fun
d o
f
27
,76
9,8
54
,00
0 in
20
00
an
d
35
,175
,07
1,00
0 in
199
9, a
nd
seve
ran
ce
insu
ran
ce fu
nd
de
po
sits of
190
,90
0,17
4,0
00
in 2
00
0 a
nd
15
3,13
3,7
24
,00
0
in 19
99
(No
te 2
)144,736,222
87,501,523114,961
69,500
To
tal lia
bilitie
s10,702,199,203
11,378,234,414$8,500,555
$9,037,517
Continued;
The accompanying notes are an integral part of these statem
ents.
Balance S
heets
50
As o
f De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
LIABILITIES AN
D SH
AREH
OLD
ERS’ EQ
UITY
Co
mm
itme
nts a
nd
con
ting
en
cies (N
ote
14)
Sh
are
ho
lde
rs’ eq
uity:
Ca
pita
l stock
(No
te 1):
Co
mm
on
stock
762,207,995756,074,960
$605,407$600,536
Pre
ferre
d sto
ck119,467,135
119,467,13594,890
94,890
Pa
id-in
cap
ital in
exce
ss of
pa
r valu
e (N
ote
1)3,843,442,538
3,719,943,0123,052,774
2,954,682
Oth
er ca
pita
l surp
lus (N
ote
s 8 a
nd
13)
1,843,210,7521,834,985,265
1,464,0281,457,494
Re
tain
ed
ea
rnin
gs (N
ote
15):
Ap
pro
pria
ted
10,754,395,6885,241,659,358
8,542,0144,163,352
Un
ap
pro
pria
ted
31,40931,989
2525
Ca
pita
l ad
justm
en
ts:
Tre
asu
ry stock
(No
te 17
)(962,247,859)
(427,838,371)(764,295)
(339,824)C
on
side
ratio
n fo
r con
versio
n rig
hts (N
ote
13)
29,434,90985,476,294
23,38067,892
Ga
in (lo
ss) on
valu
atio
n o
f
inve
stme
nts (N
ote
9)
(287,568,317)2,005,562,370
(228,410)1,592,980
Loss o
n va
lua
tion
of d
eriva
tive
instru
me
nts (N
ote
14)
(3,272,484)(3,793,544)
(2,599)(3,013)
Sto
ck o
ptio
n co
mp
en
satio
n (N
ote
18)
93,745,514–
74,460–
To
tal sh
are
ho
lde
rs’ eq
uity
16,192,847,28013,331,568,468
$12,861,674$10,589,014
To
tal lia
bilitie
s an
d sh
are
ho
lde
rs’ eq
uity
26,895,046,48324,709,802,882
$21,362,229$19,626,531
The accompanying notes are an integral part of these statem
ents.
Balance S
heets
51
For th
e ye
ars e
nd
ed
De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
Sa
les (N
ote
21):
Do
me
stic10,903,383,976
8,850,624,784$8,660,353
$7,029,885E
xpo
rt23,380,368,303
17,267,160,96718,570,586
13,714,980T
ota
l sale
s34,283,752,279
26,117,785,751$27,230,939
$20,744,865
Co
st of sa
les (N
ote
21)
21,993,377,77017,661,171,944
17,468,92614,027,936
Gro
ss pro
fit12,290,374,509
8,456,613,807$9,762,013
$6,716,929S
ellin
g, g
en
era
l an
d a
dm
inistra
tive e
xpe
nse
s4,855,219,849
3,975,113,6903,856,410
3,157,358O
pe
ratin
g p
rofit
7,435,154,6604,481,500,117
$5,905,603$3,559,571
No
n-o
pe
ratin
g in
com
e:
Inte
rest a
nd
divid
en
d in
com
e156,427,345
227,740,962$124,247
$180,890G
ain
on
fore
ign
curre
ncy tra
nsa
ction
s299,070,108
267,472,334237,546
212,448G
ain
on
fore
ign
curre
ncy tra
nsla
tion
(No
te 2
3)
34,121,680261,416,440
27,102207,638
Ga
in o
n va
lua
tion
of in
vestm
en
ts
usin
g th
e e
qu
ity me
tho
d871,326,886
298,242,218692,079
236,888O
the
r649,446,121
592,472,848515,843
470,591T
ota
l no
n-o
pe
ratin
g in
com
e2,010,392,140
1,647,344,802$1,596,817
$1,308,455
No
n-o
pe
ratin
g e
xpe
nse
s:
Inte
rest e
xpe
nse
343,367,140721,198,940
$272,730$572,835
Loss o
n fo
reig
n cu
rren
cy tran
sactio
ns
279,048,744280,490,610
221,643222,788
Loss o
n fo
reig
n cu
rren
cy tran
slatio
n (N
ote
23
)237,838,325
106,594,502188,911
84,666O
the
r638,478,440
726,334,345507,131
576,914T
ota
l no
n-o
pe
ratin
g e
xpe
nse
s1,498,732,649
1,834,618,397$1,190,415
$1,457,203
Ord
ina
ry pro
fit7,946,814,151
4,294,226,522$6,312,005
$3,410,823E
xtrao
rdin
ary in
com
e153,634,395
–122,029
–E
xtrao
rdin
ary lo
ss –
266,258,185–
211,484N
et in
com
e b
efo
re in
com
e ta
xes
8,100,448,5464,027,968,337
$6,434,034$3,199,339
Inco
me
tax e
xpe
nse
(No
te 19
)2,085,918,354
857,565,7631,656,806
681,148
Ne
t inco
me
6,014,530,1923,170,402,574
$4,777,228$2,518,191
Ea
rnin
gs p
er sh
are
(No
te 2
0)
35,00619,214
$28$15
(In K
ore
an
Wo
n a
nd
U.S
. Do
llars)
Dilu
ted
ea
rnin
gs p
er sh
are
(No
te 2
0)
34,39318,848
$27$14.9
(In K
ore
an
Wo
n a
nd
U.S
. Do
llars)
The accompanying notes are an integral part of these statem
ents.
Statem
ents of Income
52
For th
e ye
ars e
nd
ed
De
cem
be
r 31, 2
00
0 a
nd
199
9
Da
te o
f ap
pro
pria
tion
s: Ma
rch 9
, 20
01 a
nd
Ma
rch 16
, 20
00
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
Re
tain
ed
ea
rnin
gs b
efo
re a
pp
rop
riatio
ns:
Un
ap
pro
pria
ted
reta
ine
d e
arn
ing
s carrie
d
ove
r from
prio
r yea
r31,989
32,306$25
$26C
um
ula
tive e
ffects o
f cha
ng
es
in a
ccou
ntin
g p
olicy (N
ote
2)
6,761,574(1,744,477,621)
5,371(1,385,606)
Ad
ditio
na
l accru
ed
seve
ran
ce b
en
efits
–(8,450,909)
–(6,712)
Inte
rim d
ivide
nd
s (No
te 16
, divid
en
d ra
te: 10
%)
(85,885,559)(84,663,871)
(68,217)(67,247)
Ne
t inco
me
6,014,530,1923,170,402,574
4,777,2282,518,191
To
tal re
tain
ed
ea
rnin
gs b
efo
re a
pp
rop
.5,935,438,196
1,332,842,479$4,714,407
$1,058,652
Tra
nsfe
rs from
volu
nta
ry rese
rves (N
ote
15):
Re
serve
for o
verse
as m
ark
et d
eve
lop
me
nt
37,990,68553,600,000
$30,175$42,573
Re
serve
for o
verse
as in
vestm
en
t loss
48,400,00070,199,899
38,44355,758
Re
serve
for te
chn
olo
gy d
eve
lop
me
nt
184,700,000274,700,000
146,704218,190
Re
serve
for e
xpo
rt loss
49,368,98568,000,000
39,21354,011
To
tal tra
nsfe
rs from
volu
nta
ry rese
rves
320,459,670466,499,899
$254,535$370,532
Ap
pro
pria
tion
s (No
te 15
):
Leg
al re
serve
53,000,000150,000,000
$42,097$119,142
Re
serve
for b
usin
ess ra
tion
aliza
tion
1,000,000,000700,000,000
794,281555,997
Re
serve
for te
chn
olo
gy d
eve
lop
me
nt
2,000,000,000606,581,000
1,588,562481,796
Ca
sh d
ivide
nd
s (No
te 16
)422,670,457
342,729,389335,719
272,224[C
om
mo
n sto
ck: 5
0%
in 2
00
0 a
nd
40
% in
199
9]
[Pre
ferre
d sto
ck: 5
1% in
20
00
an
d 4
1% in
199
9]
Re
serve
for lo
ss on
disp
osa
l of tre
asu
ry stock
200,000,000–
158,856–
Re
serve
for fa
cilities in
vestm
en
t2,580,196,000
–2,049,402
–T
ota
l ap
pro
pria
tion
s6,255,866,457
1,799,310,389$4,968,917
$1,429,159
Un
ap
pro
pria
ted
reta
ine
d e
arn
ing
s carrie
d o
ver
to su
bse
qu
en
t yea
r31,409
31,989$25
$25
The accompanying notes are an integral part of these statem
ents.
Statem
ents of Appropriations of R
etained Earnings
53
For th
e ye
ars e
nd
ed
De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
Ca
sh flo
ws fro
m o
pe
ratin
g a
ctivities:
Ne
t inco
me
6,014,530,1923,170,402,574
$4,777,228$2,518,191
Item
s no
t invo
lving
cash
flow
s:
De
pre
ciatio
n a
nd
am
ortiza
tion
2,666,229,0962,739,262,420
$2,117,736$2,175,745
Pro
vision
for se
vera
nce
be
ne
fits160,523,572
119,847,588127,501
95,193Lo
ss on
disp
osa
l of p
rop
erty,
pla
nt a
nd
eq
uip
me
nt
23,325,28451,750,930
18,52741,105
Ga
in o
n d
ispo
sal o
f pro
pe
rty,
pla
nt a
nd
eq
uip
me
nt
(28,459,459)(23,523,016)
(22,605)(18,684)
Loss o
n d
ispo
sal o
f eq
uity in
vestm
en
ts36,411,398
32,702,75428,920
25,975G
ain
on
disp
osa
l of e
qu
ity inve
stme
nts
(1,016,307)(106,514,836)
(808)(84,603)
Loss o
n fo
reig
n cu
rren
cy tran
slatio
n237,838,325
106,358,633(692,079)
(236,888)G
ain
on
fore
ign
curre
ncy tra
nsla
tion
(27,643,050)(261,376,425)
188,91184,479
Ga
in o
n va
lua
tion
of in
vestm
en
ts
usin
g th
e e
qu
ity me
tho
d(871,326,886)
(298,242,218)(21,956)
(207,606)D
efe
rred
inco
me
taxe
s899,310,939
199,038,851714,306
158,092O
the
r283,050,658
526,336,066224,822
418,058T
ota
l item
s no
t invo
lving
cash
flow
s3,378,243,570
3,085,640,747$2,683,275
$2,450,866
Ch
an
ge
s in o
pe
ratin
g a
ssets a
nd
liab
ilities:
Tra
de
acco
un
ts an
d n
ote
s rece
ivab
le(697,751)
19,068,860$(554)
$15,146In
ven
torie
s(488,361,559)
(475,512,306)(387,896)
(377,690)A
ccrue
d in
com
e(65,522,394)
3,536,432(52,043)
2,809A
dva
nce
pa
yme
nts
(18,126,650)21,607,277
(14,398)17,162
Gu
ara
nte
e d
ep
osits
11,449,282(3,072,795)
9,094(2,441)
Tra
de
acco
un
ts an
d n
ote
s pa
yab
le68,396,233
308,456,59554,326
245,001A
ccrue
d e
xpe
nse
s409,340,228
84,558,898325,131
67,164In
com
e ta
xes p
aya
ble
290,014,815564,890,732
230,353448,682
Pa
yme
nt o
f seve
ran
ce b
en
efits
(68,872,692)(110,691,623)
(54,704)(87,920)
Oth
er
(74,574,885)408,846,750
(59,234)324,739
To
tal ch
an
ge
s in o
p. a
ssets a
nd
liab
ilities
63,044,627821,688,820
$50,075$652,652
Ne
t cash
pro
vide
d b
y op
era
ting
activitie
s9,455,818,389
7,077,732,141$7,510,578
$5,621,709
Continued;
The accompanying notes are an integral part of these statem
ents.
Statem
ents of Cash Flows
54
For th
e ye
ars e
nd
ed
De
cem
be
r 31, 2
00
0 a
nd
199
9
In Thousands of Korean W
onIn Thousands of U
.S. Dollars (N
ote 3)
20
00
199
92
00
019
99
Ca
sh flo
ws fro
m in
vestin
g a
ctivities:
Incre
ase
in sh
ort-te
rm fin
an
cial in
strum
en
ts(761,536,523)
–$(604,874)
$–D
ecre
ase
in sh
ort-te
rm fin
an
cial in
strum
en
ts–
362,368,502–
287,823P
roce
ed
s from
sale
of m
ark
eta
ble
secu
rities
1,708,799,613837,207,770
1,357,267664,978
Acq
uisitio
n o
f ma
rke
tab
le se
curitie
s(2,136,393,351)
(929,344,062)(1,696,897)
(738,160)In
crea
se in
oth
er a
ccou
nts a
nd
no
tes re
ceiva
ble
(5,495,533,634)(2,370,114,943)
(4,364,998)(1,882,538)
De
crea
se in
oth
er a
ccou
nts a
nd
no
tes re
ceiva
ble
5,522,883,4602,448,959,963
4,386,7231,945,163
Pro
cee
ds fro
m d
ispo
sal o
f pro
pe
rty,
pla
nt a
nd
eq
uip
me
nt
52,860,263399,277,815
209,649317,139
Acq
uisitio
n o
f pro
pe
rty, pla
nt a
nd
eq
uip
me
nt
(5,036,923,839)(3,401,866,665)
(4,281,161)(2,702,039)
Pro
cee
ds fro
m sa
le o
f eq
uity in
vestm
en
ts142,963,660
258,841,067113,553
205,593A
cqu
isition
of e
qu
ity inve
stme
nts
(954,452,666)(1,980,667,389)
(758,104)(1,573,207)
Incre
ase
in lo
ng
-term
fina
ncia
l instru
me
nts
an
d o
the
r asse
ts(275,443,541)
(609,048,949)(218,780)
(483,756)D
ecre
ase
in lo
ng
-term
fina
ncia
l instru
me
nts
an
d o
the
r asse
ts550,781,633
790,771,403437,475
628,095O
the
r(141,956,097)
3,902,01911
3,099N
et ca
sh u
sed
in in
vestin
g a
ctivities
(6,823,951,022)(4,189,713,464)
$(5,420,136)$(3,327,810)
Ca
sh flo
ws fro
m fin
an
cing
activitie
s:
Pro
cee
ds fro
m sh
ort-te
rm b
orro
win
gs
1,506,859214,979,206
$1,197$170,754
Re
pa
yme
nt o
f sho
rt-term
bo
rrow
ing
s(1,542,153)
(453,342,931)(1,225)
(360,082)In
crea
se in
oth
er a
ccou
nts a
nd
no
tes p
aya
ble
15,422,340,5099,603,870,409
12,249,6747,628,174
De
crea
se in
oth
er a
ccou
nts a
nd
no
tes p
aya
ble
(15,297,532,349)(9,046,194,581)
(12,150,542)(7,185,222)
Pro
cee
ds fro
m lo
ng
-term
de
bt
–722,407,330
–573,795
Re
pa
yme
nt o
f lon
g-te
rm d
eb
t(391,627,375)
(3,304,344,477)(311,062)
(2,624,579)P
roce
ed
s from
bo
nd
s–
478,410,000–
379,992R
ep
aym
en
t of cu
rren
t ma
turitie
s
of lo
ng
-term
de
bt
(1,398,995,814)(2,064,758,293)
(1,111,196)(1,639,999)
Issua
nce
of co
mm
on
stock
–1,567,684,230
–1,245,182
Pa
yme
nts o
f divid
en
ds
(428,543,923)(172,423,703)
(340,384)(136,953)
Pro
cee
ds fro
m a
cqu
isition
of tre
asu
ry stock
(534,409,488)–
(424,471)–
Oth
er
(8,009,728)(84,243,073)
(6,362)(66,913)
Ne
t cash
use
d in
fina
ncin
g a
ctivities
(2,636,813,462)(2,537,955,883)
$(2,094,371)$(2,015,851)
Ne
t cha
ng
e in
cash
an
d ca
sh e
qu
ivale
nts
(4,946,095)350,062,794
$(3,929)$278,048
Ca
sh a
nd
cash
eq
uiva
len
ts at b
eg
inn
ing
of ye
ar
526,829,785176,766,991
418,451140,403
Ca
sh a
nd
cash
eq
uiva
len
ts at e
nd
of ye
ar
521,883,690526,829,785
$414,522$418,451
The accompanying notes are an integral part of these statem
ents.
Statem
ents of Cash Flows
55
De
cem
be
r 31, 2
00
0 a
nd
199
9
1. The Company
Sa
ms
un
g E
lectro
nics
Co
., Ltd
. (the
“C
om
pa
ny
”) is
inco
rpo
rate
d
un
de
r the
law
s of th
e R
ep
ub
lic of K
ore
a to
ma
nu
factu
re a
nd
sell
ele
ctro
nic
go
od
s, c
om
mu
nic
atio
n fa
cilitie
s, s
em
ico
nd
uc
tors
,
tele
com
mu
nica
tion
pro
du
cts an
d o
the
r simila
r pro
du
cts.
Th
e C
om
pa
ny
’s s
toc
k is
pu
blic
ly tra
de
d a
nd
all is
su
ed
an
d
ou
tstan
din
g sh
are
s are
listed
on
the
Ko
rea
Sto
ck E
xcha
ng
e.
Un
de
r its Article
s of In
corp
ora
tion
, the
Co
mp
an
y is a
uth
orize
d to
issue
50
0,0
00
,00
0 sh
are
s of ca
pita
l stock
(pa
r va
lue
5
,00
0), o
f
wh
ich 10
0,0
00
,00
0 sh
are
s are
cum
ula
tive
, pa
rticipa
ting
pre
ferre
d
sto
ck
, wh
ich
are
no
n-v
otin
g a
nd
en
titled
to a
min
imu
m c
as
h
div
ide
nd
(9%
of p
ar v
alu
e). T
he
no
n-c
um
ula
tive
, no
n-v
otin
g
pre
ferre
d sto
ck issu
ed
on
or b
efo
re Fe
bru
ary 2
8, 19
97
is en
titled
to
an
ad
ditio
na
l cash
divid
en
d (1%
of p
ar va
lue
) ove
r com
mo
n sto
ck.
As o
f De
cem
be
r 31, 2
00
0, 15
2,4
41,5
99
sha
res o
f com
mo
n sto
ck a
nd
23
,89
3,4
27
sh
are
s o
f su
ch
pre
ferre
d s
toc
k w
ere
iss
ue
d a
nd
ou
tstan
din
g.
As o
f De
cem
be
r 31, 2
00
0, m
ajo
r sha
reh
old
ers o
f the
Co
mp
an
y’s
stock
, inclu
din
g p
refe
rred
stock
, an
d th
eir re
spe
ctive sh
are
ho
ldin
gs
are
as fo
llow
s:
In a
dd
ition
, the
Co
mp
an
y is
au
tho
rize
d to
iss
ue
co
nv
ertib
le
de
be
ntu
res w
ith fa
ce va
lue
s of u
p to
4
,00
0 b
illion
(3
,00
0 b
illion
for c
om
mo
n s
toc
k a
nd
1,0
00
billio
n fo
r pre
ferre
d s
toc
k) a
nd
de
be
ntu
res w
ith sto
ck p
urch
ase
op
tion
s with
face
valu
es o
f up
to
2,0
00
billio
n (
1,50
0 b
illion
for co
mm
on
stock
an
d
50
0 b
illion
for p
refe
rred
stock
). Th
e C
om
pa
ny is a
uth
orize
d to
issue
de
po
sitory
rec
eip
ts w
ith th
e a
pp
rov
al o
f the
Bo
ard
of D
irec
tors
. Als
o, th
e
Co
mp
an
y is au
tho
rized
to issu
e ca
pita
l stock
thro
ug
h th
e e
xercise
of sto
ck o
ptio
ns o
r ge
ne
ral p
ub
lic sub
scriptio
n a
nd
to d
om
estic a
nd
fore
ign
fina
nc
ial in
stitu
tion
s fo
r urg
en
t fun
d ra
isin
g o
r to c
o-
op
era
ting
com
pa
nie
s for te
chn
ical a
ssistan
ce w
ith th
e a
pp
rova
l of
the
Bo
ard
of D
irecto
rs.
Th
e C
om
pa
ny
ha
s a
sto
ck
op
tion
pla
n u
nd
er w
hic
h o
ptio
ns
to
pu
rch
as
e s
ha
res
of c
om
mo
n s
toc
k m
ay
be
gra
nte
d to
ke
y
em
plo
yee
s with
the
ap
pro
val o
f sha
reh
old
ers. O
n M
arch
16, 2
00
0,
sto
ck o
ptio
ns
we
re g
ran
ted
to 7
6 e
mp
loy
ee
s a
nd
dire
ctors
(se
e
No
te 18
).
Th
e C
om
pa
ny issu
ed
1,22
6,6
07
sha
res o
f com
mo
n sto
ck u
po
n th
e
con
versio
n o
f fore
ign
curre
ncy co
nve
rtible
bo
nd
s in th
e a
mo
un
t of
US
$14
6,9
30
,00
0 d
urin
g th
e y
ea
r en
de
d D
ece
mb
er 3
1, 20
00
(see
No
te 13
). Th
e ca
sh p
roce
ed
s in e
xcess o
f pa
r va
lue
of
123
,50
0
millio
n w
ere
cred
ited
to p
aid
-in ca
pita
l in e
xcess o
f pa
r valu
e.
As
of D
ec
em
be
r 31, 2
00
0,
54
6,4
27
,65
0,0
00
(fac
e v
alu
e o
f
US
$4
77
,08
0,0
00
) of co
nve
rtible
bo
nd
s are
ou
tstan
din
g (se
e N
ote
13). N
o d
eb
en
ture
s with
stock
pu
rcha
se o
ptio
ns h
ave
be
en
issue
d
as o
f De
cem
be
r 31, 2
00
0.
2. Sum
mary of S
ignificant Accounting P
olicies
Th
e sig
nifica
nt a
ccou
ntin
g p
olicie
s follo
we
d b
y the
Co
mp
an
y in th
e
pre
pa
ratio
n o
f its fin
an
cia
l sta
tem
en
ts in
ac
co
rda
nc
e w
ith th
e
Fin
an
cia
l Ac
co
un
ting
Sta
nd
ard
s o
f the
Re
pu
blic
of K
ore
a a
re
sum
ma
rized
be
low
.
Ba
sis of Fin
an
cial S
tate
me
nt P
rese
nta
tion
Th
e o
fficia
l ac
co
un
ting
rec
ord
s o
f the
Co
mp
an
y, o
n w
hic
h th
e
Ko
rea
n la
ng
ua
ge
fina
ncia
l state
me
nts a
re b
ase
d, a
re m
ain
tain
ed
in
Ko
rea
n W
on
in a
ccord
an
ce w
ith th
e la
ws a
nd
reg
ula
tion
s of th
e
Re
pu
blic o
f Ko
rea
.
Th
e a
ccom
pa
nyin
g fin
an
cial sta
tem
en
ts ha
ve b
ee
n e
xtracte
d fro
m
the
Co
mp
an
y’s
Ko
rea
n la
ng
ua
ge
fina
ncia
l sta
tem
en
ts th
at w
ere
pre
pa
red
usin
g a
ccou
ntin
g p
rincip
les, p
roce
du
res a
nd
rep
ortin
g
pra
ctic
es
ge
ne
rally
ac
ce
pte
d in
the
Re
pu
blic
of K
ore
a. T
he
se
stan
da
rds v
ary
from
Inte
rna
tion
al A
ccou
ntin
g S
tan
da
rds a
nd
the
ac
co
un
ting
prin
cip
les
ge
ne
rally
ac
ce
pte
d in
the
co
un
try o
f the
rea
de
r. Th
e fin
an
cial sta
tem
en
ts ha
ve b
ee
n tra
nsla
ted
from
Ko
rea
n
into
En
glish
, an
d h
ave
be
en
form
atte
d in
a m
an
ne
r diffe
ren
t from
the
pre
se
nta
tion
un
de
r Ko
rea
n fin
an
cia
l sta
tem
en
t pra
ctic
es
.
Ce
rtain
su
pp
lem
en
tary
info
rma
tion
inc
lud
ed
in th
e K
ore
an
lan
gu
ag
e sta
tuto
ry fina
ncia
l state
me
nts, b
ut n
ot re
qu
ired
for a
fair
pre
se
nta
tion
of th
e C
om
pa
ny
’s fin
an
cia
l po
sitio
n o
r res
ults
of
op
era
tion
s, is
no
t pre
se
nte
d in
the
ac
co
mp
an
yin
g fin
an
cia
l
state
me
nts. A
ccord
ing
ly, th
e a
ccom
pa
ny
ing
fina
ncia
l state
me
nts
are
no
t inte
nd
ed
to p
res
en
t the
fina
nc
ial p
os
ition
, res
ults
of
op
era
tion
s an
d ca
sh flo
ws in
acco
rda
nce
with
acco
un
ting
prin
ciple
s
an
d p
ractice
s g
en
era
lly a
ccep
ted
in co
un
tries
an
d ju
risd
iction
s
oth
er th
an
Ko
rea
.
56
Notes to Financial S
tatements
Sh
are
ho
lde
r
Citib
an
k N
.A.
Sa
msu
ng
Life In
sura
nce
Co
., Ltd.
Sa
msu
ng
Co
rpo
ratio
n
Lee
, Ku
n-H
ee
an
d re
lative
s
Se
ou
l Ba
nk
CM
B-E
uro
pa
c Gro
wth
Fun
d
Th
e G
ove
rnm
en
t of S
ing
ap
ore
CM
B-C
AP
RE
Em
erg
. Gro
wth
Fun
d
Ko
rea
Exch
an
ge
Ba
nk
CM
B-A
DIA
Nu
mb
er o
f
Sh
are
s
23,958,134
10,624,693
5,917,362
5,322,559
3,950,559
2,682,771
2,462,839
2,207,122
1,949,946
1,919,098
Pe
rcen
tag
e o
f
Ow
ne
rship
(%)
13.59
6.03
3.36
3.02
2.24
1.52
1.40
1.25
1.11
1.09
Th
e p
rep
ara
tion
of fin
an
cial sta
tem
en
ts req
uire
s ma
na
ge
me
nt to
ma
ke
es
tima
tes
an
d a
ss
um
ptio
ns
tha
t affe
ct am
ou
nts
rep
orte
d
the
rein
. Du
e to
the
inh
ere
nt u
nc
erta
inty
inv
olv
ed
in m
ak
ing
estim
ate
s, actu
al re
sults re
po
rted
in fu
ture
pe
riod
s ma
y diffe
r from
tho
se e
stima
tes.
Ca
sh, C
ash
Eq
uiva
len
ts an
d S
ho
rt-Te
rm Fin
an
cial In
strum
en
ts
Ca
sh
an
d c
as
h e
qu
iva
len
ts in
clu
de
ca
sh
on
ha
nd
an
d in
ba
nk
ac
co
un
ts w
ith o
rigin
al m
atu
rities
of th
ree
mo
nth
s o
r les
s.
Inve
stme
nts w
hich
are
rea
dily co
nve
rtible
into
cash
with
in fo
ur to
twe
lve m
on
ths o
f pu
rcha
se a
re cla
ssified
on
the
ba
lan
ce sh
ee
t as
sh
ort-te
rm fin
an
cial in
stru
me
nts
. Th
e co
st o
f the
se
inv
es
tme
nts
ap
pro
xima
tes fa
ir valu
e.
Ma
rke
tab
le S
ecu
rities
Ma
rke
tab
le se
curitie
s are
state
d a
t fair va
lue
.
Allo
wa
nce
for D
ou
btfu
l Acco
un
ts
Th
e C
om
pa
ny
pro
vid
es
an
allo
wa
nce
for d
ou
btfu
l acco
un
ts a
nd
no
tes re
ceiva
ble
ba
sed
on
the
ag
gre
ga
te e
stima
ted
colle
ctibility o
f
the
rece
ivab
les.
Inve
nto
ry Va
lua
tion
Inv
en
torie
s a
re s
tate
d a
t the
low
er o
f co
st o
r ma
rke
t. Co
st is
de
term
ine
d b
y th
e a
ve
rag
e co
st me
tho
d, e
xcep
t for m
ate
rials in
tran
sit wh
ich a
re sta
ted
at a
ctua
l cost a
s de
term
ine
d b
y the
spe
cific
ide
ntifica
tion
me
tho
d.
Pro
pe
rty, Pla
nt a
nd
Eq
uip
me
nt a
nd
Re
late
d D
ep
recia
tion
Pro
pe
rty, pla
nt a
nd
eq
uip
me
nt a
re sta
ted
at co
st, exce
pt fo
r certa
in
asse
ts sub
ject to
up
wa
rd re
valu
atio
n in
acco
rda
nce
with
the
Asse
t
Re
va
lua
tion
La
w o
f Ko
rea
. Th
e re
va
lua
tion
pre
se
nts
pro
du
ction
facilitie
s an
d o
the
r bu
ildin
gs a
t the
ir de
pre
ciate
d re
pla
cem
en
t cost,
an
d la
nd
at th
e p
reva
iling
ma
rke
t price
, as o
f the
effe
ctive d
ate
of
rev
alu
atio
n. T
he
rev
alu
atio
n in
crem
en
t, ne
t of re
va
lua
tion
tax, is
first a
pp
lied
to o
ffse
t accu
mu
late
d d
eficit a
nd
de
ferre
d fo
reig
n
exch
an
ge
losse
s, if an
y. T
he
rem
ain
de
r ma
y b
e cre
dite
d to
oth
er
cap
ital su
rplu
s or tra
nsfe
rred
to co
mm
on
stock
. A n
ew
ba
sis for
calcu
latin
g d
ep
recia
tion
is e
sta
blis
he
d fo
r rev
alu
ed
as
se
ts (s
ee
No
te 8
).
De
pre
ciatio
n is co
mp
ute
d u
sing
the
straig
ht-lin
e m
eth
od
, ba
sed
on
the
estim
ate
d u
sefu
l lives o
f the
asse
ts as d
escrib
ed
be
low
.
Th
e C
om
pa
ny ca
pita
lizes in
tere
st exp
en
se in
curre
d o
n b
orro
win
gs
use
d to
fina
nce
the
cost o
f con
structin
g fa
cilities a
nd
eq
uip
me
nt
(see
No
te 8
).
Ma
inte
na
nce
an
d R
ep
airs
Ro
utin
e m
ain
ten
an
ce
an
d re
pa
irs a
re c
ha
rge
d to
ex
pe
ns
e a
s
inc
urre
d. E
xp
en
ditu
res
wh
ich
en
ha
nc
e th
e v
alu
e o
r ex
ten
d th
e
use
ful life
of th
e re
late
d a
ssets a
re ca
pita
lized
.
Re
sea
rch a
nd
De
velo
pm
en
t Co
sts
Re
se
arc
h a
nd
de
ve
lop
me
nt c
os
ts a
re c
ha
rge
d to
ex
pe
ns
e a
s
incu
rred
.
Inta
ng
ible
Asse
ts
Inta
ng
ible
asse
ts are
state
at co
st, ne
t of d
ep
recia
tion
calcu
late
d
usin
g th
e stra
igh
t-line
me
tho
d b
ase
d o
n th
e e
stima
ted
use
ful live
s
as fo
llow
s:
Eq
uity In
vestm
en
ts in S
ub
sidia
ries a
nd
Affilia
ted
Co
mp
an
ies &
Oth
er In
vestm
en
ts
All in
vestm
en
ts in e
qu
ity an
d d
eb
t secu
rities a
re in
itially ca
rried
at
cost, in
clud
ing
incid
en
tal e
xpe
nse
s. Th
e su
bse
qu
en
t acco
un
ting
for
inve
stme
nts b
y the
type
of se
curity is a
s follo
ws.
Inv
es
tme
nts
in m
ark
eta
ble
eq
uity
se
cu
rities
of n
on
-co
ntro
lled
inve
stee
s, classifie
d a
s oth
er in
vestm
en
ts, are
carrie
d a
t fair va
lue
.
Te
mp
ora
ry ch
an
ge
s in fa
ir va
lue
are
acco
un
ted
for in
the
cap
ital
ad
justm
en
t acco
un
t, a co
mp
on
en
t of sh
are
ho
lde
rs’ eq
uity. D
eclin
es
in fa
ir valu
e w
hich
are
an
ticipa
ted
to b
e p
erm
an
en
t are
reco
rde
d in
curre
nt o
pe
ratio
ns a
fter e
limin
atin
g a
ny p
revio
usly re
cord
ed
cap
ital
ad
justm
en
t for te
mp
ora
ry cha
ng
es. S
ub
seq
ue
nt re
cove
ries o
r oth
er
futu
re ch
an
ge
s in fa
ir valu
e a
re re
cord
ed
in th
e ca
pita
l ad
justm
en
t
acco
un
t.
Inve
stme
nts in
no
n-m
ark
eta
ble
eq
uity se
curitie
s of n
on
-con
trolle
d
inv
es
tee
s, cla
ss
ified
as
oth
er in
ve
stm
en
ts, a
re ca
rried
at co
st,
exce
pt fo
r de
cline
s in th
e C
om
pa
ny
’s pro
po
rtion
ate
ow
ne
rship
of
the
un
de
rlyin
g b
oo
k v
alu
e o
f the
inv
es
ted
co
mp
an
y w
hic
h a
re
an
ticipa
ted
to b
e p
erm
an
en
t. Th
e d
eclin
es a
re re
cord
ed
in cu
rren
t
op
era
tion
s, an
d su
bse
qu
en
t reco
verie
s are
also
reco
rde
d in
curre
nt
op
era
tion
s up
to th
e o
rigin
al co
st of th
e in
vestm
en
t.
Inv
es
tme
nts
in e
qu
ity s
ec
uritie
s o
f co
mp
an
ies
ov
er w
hic
h th
e
Co
mp
an
y ha
s the
ab
ility to co
ntro
l or e
xercise
sign
ifican
t influ
en
ce
on
, classifie
d a
s eq
uity
inv
estm
en
ts in su
bsid
iarie
s an
d a
ffiliate
d
com
pa
nie
s, are
reco
rde
d u
sing
the
eq
uity
me
tho
d o
f acco
un
ting
.
Diffe
ren
ce
s b
etw
ee
n th
e p
urc
ha
se
pric
e a
nd
the
Co
mp
an
y’s
pro
po
rtion
ate
ow
ne
rsh
ip o
f the
ne
t bo
ok
va
lue
of th
e in
ve
ste
d
com
pa
ny a
re a
mo
rtized
ove
r 5 ye
ars u
sing
the
straig
ht-lin
e m
eth
od
.
Un
de
r the
eq
uity
me
tho
d, th
e C
om
pa
ny
reco
rds
cha
ng
es
in its
pro
po
rtion
ate
ow
ne
rsh
ip o
f the
bo
ok
va
lue
of th
e in
ve
ste
d
57
Asse
t
Go
od
will
Inte
llectu
al p
rop
rieta
ry righ
ts
Oth
er in
tan
gib
les
Estim
ate
d U
sefu
l
Life in
Ye
ars5
5 - 10
2 - 25
Asse
t
Bu
ildin
gs a
nd
au
xiliary fa
cilities
Ma
chin
ery a
nd
eq
uip
me
nt
To
ols a
nd
fixture
s
Stru
cture
s an
d o
the
rs
Estim
ate
d U
sefu
l
Life in
Ye
ars
7 - 60
2 - 10
2 - 10
2 - 40
com
pa
ny a
s curre
nt o
pe
ratio
ns, ca
pita
l ad
justm
en
ts or a
dju
stme
nts
to re
tain
ed
ea
rnin
gs, d
ep
en
din
g o
n th
e n
atu
re o
f the
un
de
rlyin
g
cha
ng
e in
bo
ok
valu
e o
f the
inve
sted
com
pa
ny.
In a
ccord
an
ce w
ith th
e re
vised
fina
ncia
l acco
un
ting
stan
da
rds fo
r
con
solid
atio
n g
en
era
lly acce
pte
d in
the
Re
pu
blic o
f Ko
rea
, effe
ctive
Ma
rch 2
3, 2
00
0, th
e C
om
pa
ny h
as ch
an
ge
d its a
ccou
ntin
g p
olicy fo
r
ad
ditio
na
l inv
es
tme
nts
ac
qu
ired
in c
on
so
lida
ted
su
bs
idia
ries
.
Pre
vio
us
ly, a
ll go
od
will a
nd
ne
ga
tive
go
od
will a
risin
g fro
m th
e
ad
ditio
na
l inv
es
tme
nt w
as
am
ortiz
ed
ov
er 5
ye
ars
us
ing
the
straig
ht-lin
e m
eth
od
. As o
f the
curre
nt ye
ar, su
ch d
iffere
nce
s tha
t
pre
vio
us
ly re
su
lted
in g
oo
dw
ill an
d n
eg
ativ
e g
oo
dw
ill are
reco
gn
ized
as g
ain
or lo
ss on
valu
atio
n o
f inve
stme
nt, a
com
po
ne
nt
of ca
pita
l ad
justm
en
ts.
As a
resu
lt of th
is cha
ng
e in
acco
un
ting
po
licy, be
gin
nin
g re
tain
ed
ea
rnin
gs a
nd
ne
t pro
fit for th
e ye
ar e
nd
ed
De
cem
be
r 31, 2
00
0 a
re
11,56
2 m
illion
an
d
5,3
32
millio
n g
rea
ter, re
spe
ctively, a
nd
the
cap
ital a
dju
stm
en
t (ga
in o
r los
s o
n v
alu
atio
n o
f inv
es
tme
nts
) is
ap
pro
xima
tely
3
3,3
56
millio
n le
ss tha
n w
ha
t wo
uld
ha
ve
be
en
rep
orte
d u
nd
er th
e p
rev
iou
s a
ccou
ntin
g m
eth
od
. If the
rev
ise
d
ac
co
un
ting
me
tho
d w
ere
ap
plie
d to
the
pre
vio
us
ye
ar e
nd
ed
De
ce
mb
er 3
1, 199
9, th
e d
isc
los
ed
am
ou
nts
for th
e fo
llow
ing
acco
un
ts wo
uld
ha
ve b
ee
n a
s follo
ws:
Inv
estm
en
ts in 6
com
pa
nie
s inclu
din
g S
am
sun
g E
lectro
nics In
dia
Info
rma
tion
& T
ele
com
mu
nica
tion
Ltd. w
hich
we
re n
ot va
lue
d u
sing
the
eq
uity m
eth
od
as o
f De
cem
be
r 31, 19
99
du
e to
the
sma
ll scale
of th
eir a
ss
ets
, we
re v
alu
ed
us
ing
the
eq
uity
me
tho
d a
s o
f
De
cem
be
r 31, 2
00
0. A
s a re
sult o
f the
se ch
an
ge
s, un
ap
pro
pria
ted
reta
ine
d
ea
rnin
gs
c
arrie
d
ov
er
from
th
e
prio
r y
ea
r a
re
ap
pro
xima
tely
, 4
,80
0 m
illion
les
s th
an
wh
at w
ou
ld h
av
e b
ee
n
rep
orte
d u
nd
er th
e p
revio
us a
ccou
ntin
g m
eth
od
.
Sto
ck a
nd
De
be
ntu
re Issu
an
ce C
osts
Sto
ck a
nd
de
be
ntu
re issu
an
ce co
sts are
cred
ited
to ca
pita
l surp
lus
an
d d
eb
en
ture
s.
Accru
ed
Se
vera
nce
Be
ne
fits
Em
plo
ye
es a
nd
dire
ctors w
ith m
ore
tha
n o
ne
ye
ar o
f serv
ice a
re
en
titled
to re
ceive
a lu
mp
-sum
pa
yme
nt u
po
n te
rmin
atio
n o
f the
ir
em
plo
ym
en
t with
the
Co
mp
an
y, b
ase
d o
n th
eir le
ng
th o
f serv
ice
an
d ra
te o
f pa
y a
t the
time
of te
rmin
atio
n. A
cc
rue
d s
ev
era
nc
e
be
ne
fits rep
rese
nt th
e a
mo
un
t wh
ich w
ou
ld b
e p
aya
ble
assu
min
g
all e
ligib
le e
mp
loye
es te
rmin
ate
d th
eir e
mp
loym
en
t at th
e b
ala
nce
she
et d
ate
.
As
of D
ec
em
be
r 31, 2
00
0, a
pp
rox
ima
tely
53
% o
f the
ac
cru
ed
se
ve
ran
ce b
en
efits
are
fun
de
d th
rou
gh
an
em
plo
ye
e s
ev
era
nce
ins
ura
nce
pla
n w
ith S
am
su
ng
Life
Ins
ura
nce
Co
mp
an
y, L
td. T
he
am
ou
nts
fun
de
d u
nd
er th
is in
su
ran
ce
pla
n a
re c
las
sifie
d a
s a
de
du
ctio
n to
ac
cru
ed
se
ve
ran
ce
be
ne
fits lia
bility
. Su
bs
eq
ue
nt
accru
als a
re to
be
fun
de
d a
t the
discre
tion
of th
e C
om
pa
ny.
In a
ccord
an
ce w
ith th
e N
atio
na
l Pe
nsio
n A
ct, a ce
rtain
po
rtion
of
the
ac
cru
ed
se
ve
ran
ce
be
ne
fits is
de
po
site
d w
ith th
e N
atio
na
l
Pe
nsio
n Fu
nd
an
d d
ed
ucte
d fro
m th
e a
ccrue
d se
ve
ran
ce b
en
efits
liab
ility. T
he
co
ntrib
ute
d a
mo
un
t sh
all b
e re
fun
de
d fro
m th
e
Na
tion
al P
en
sion
Fun
d to
em
plo
yee
s on
the
ir retire
me
nt.
Disco
un
ts an
d P
rem
ium
s on
De
be
ntu
res
Disco
un
ts an
d p
rem
ium
s on
de
be
ntu
res re
pre
sen
t the
diffe
ren
ce
be
twe
en
the
issue
price
an
d p
ar v
alu
e o
f de
be
ntu
res. D
iscou
nts
an
d p
rem
ium
s on
de
be
ntu
res a
re a
mo
rtized
ov
er th
e re
de
mp
tion
pe
riod
of th
e re
late
d d
eb
en
ture
s usin
g th
e e
ffectiv
e in
tere
st rate
me
tho
d. T
he
am
ortiza
tion
of d
iscou
nt o
n d
eb
en
ture
s is reco
rde
d a
s
inte
rest e
xpe
nse
an
d th
e a
mo
rtizatio
n o
f pre
miu
ms o
n d
eb
en
ture
s
is de
du
cted
from
inte
rest e
xpe
nse
.
Fore
ign
Cu
rren
cy Tra
nsla
tion
Mo
ne
tary a
ssets a
nd
liab
ilities d
en
om
ina
ted
in fo
reig
n cu
rren
cies
are
tran
sla
ted
into
Ko
rea
n W
on
at th
e ra
tes
pre
va
iling
at th
e
ba
lan
ce sh
ee
t da
te (in
the
case
of U
.S. D
olla
rs, US
$1 to
1,2
59
) an
d
resu
lting
tran
slatio
n lo
sses a
nd
ga
ins a
re re
cog
nize
d cu
rren
tly.
Fore
ign
curre
ncy
con
ve
rtible
de
be
ntu
res a
re tra
nsla
ted
at a
fixed
con
versio
n e
xcha
ng
e ra
te in
acco
rda
nce
with
acco
un
ting
pra
ctices
ge
ne
rally a
ccep
ted
in th
e R
ep
ub
lic of K
ore
a.
Inco
me
Ta
x Exp
en
se
Th
e C
om
pa
ny h
as a
do
pte
d th
e d
efe
rred
me
tho
d o
f acco
un
ting
for
inc
om
e ta
xe
s. U
nd
er th
is m
eth
od
, the
futu
re ta
x e
ffec
ts o
f
tem
po
rary
diffe
ren
ce
s b
etw
ee
n th
e fin
an
cia
l an
d ta
x b
as
es
of
asse
ts an
d lia
bilitie
s are
refle
cted
in th
e b
ala
nce
she
et.
Va
lua
tion
of A
ssets a
nd
Liab
ilities a
t Pre
sen
t Va
lue
As
se
ts a
cq
uire
d a
nd
liab
ilities
inc
urre
d th
rou
gh
lon
g-te
rm
insta
llme
nt tra
nsa
ction
s an
d a
ccou
nts a
nd
no
tes re
ceiva
ble
s un
de
r
resch
ed
ule
d d
eb
t pa
yme
nts a
pp
rove
d b
y the
Ko
rea
n ju
dicia
ry are
state
d a
t pre
sen
t valu
e.
Pro
du
ct Wa
rran
ties a
nd
Pe
rform
an
ce G
ua
ran
tee
s
In co
nfo
rmity w
ith a
ccou
ntin
g p
ractice
s pre
vailin
g in
the
Re
pu
blic o
f
Ko
rea
, costs re
late
d to
rep
airs, se
rvice a
nd
oth
er w
ork
req
uire
d in
acco
rda
nce
with
pro
du
ct wa
rran
ties a
nd
pe
rform
an
ce g
ua
ran
tee
s
are
cha
rge
d to
exp
en
se w
he
n in
curre
d.
De
rivative
Instru
me
nts
Th
e C
om
pa
ny u
tilizes d
eriva
tive in
strum
en
ts to re
du
ce its e
xpo
sure
to flu
ctua
tion
s in
inte
res
t an
d fo
reig
n cu
rren
cy e
xcha
ng
e ra
tes
.
Rig
hts
or o
blig
atio
ns
de
rive
d fro
m d
eriv
ativ
e in
stru
me
nts
are
reco
rde
d a
s asse
ts or lia
bilitie
s at fa
ir va
lue
on
an
accru
al b
asis.
Ga
ins
or lo
ss
es
on
va
lua
tion
of d
eriv
ativ
e in
stru
me
nts
are
reco
gn
ized
as a
com
po
ne
nt o
f curre
nt o
pe
ratio
ns, e
xcep
t for g
ain
s
or lo
sses o
n va
lua
tion
of d
eriva
tive in
strum
en
ts use
d to
he
dg
e ca
sh
flow
s, wh
ich a
re re
cord
ed
as a
cap
ital a
dju
stme
nt.
58
Acco
un
t
Ord
ina
ry inco
me
Ne
t inco
me
Ea
rnin
gs p
er sh
are
(in W
on
)
Dilu
ted
ea
rnin
gs p
er sh
are
(in W
on
)
Millio
ns o
f Wo
n
4,300,003
3,174,400
19,242
18,875
3. Am
ounts Stated in U
.S.D
ollars
Th
e C
om
pa
ny o
pe
rate
s prim
arily in
Ko
rea
n W
on
an
d its o
fficial a
ccou
ntin
g re
cord
s are
ma
inta
ine
d in
Ko
rea
n W
on
. Th
e U
.S. D
olla
r am
ou
nts
are
pro
vide
d h
ere
in a
s sup
ple
me
nta
ry info
rma
tion
sole
ly for th
e co
nve
nie
nce
of th
e re
ad
er. W
on
am
ou
nts a
re e
xpre
ssed
in U
.S. D
olla
rs at
the
rate
of
1,25
9 to
US
$1, th
e ra
te in
effe
ct on
De
cem
be
r 31, 2
00
0. T
his p
rese
nta
tion
is no
t in a
ccord
an
ce w
ith a
ccou
ntin
g p
rincip
les
ge
ne
rally a
ccep
ted
in e
ithe
r the
Re
pu
blic o
f Ko
rea
or th
e U
nite
d S
tate
s, an
d sh
ou
ld n
ot b
e co
nstru
ed
as a
rep
rese
nta
tion
tha
t the
Wo
n
am
ou
nts sh
ow
n co
uld
be
con
verte
d, re
alize
d o
r settle
d in
U.S
. Do
llars a
t this ra
te.
Th
e 19
99
U.S
. Do
llar a
mo
un
ts we
re p
revio
usly sta
ted
at th
e ra
te o
f 1,14
5 to
US
$1, w
hich
wa
s in e
ffect o
n D
ece
mb
er 3
1, 199
9.
4. Cash and Cash Equivalents, Short-Term
Financial Instruments
Ca
sh a
nd
cash
eq
uiva
len
ts an
d sh
ort-te
rm fin
an
cial in
strum
en
ts as o
f De
cem
be
r 31, 2
00
0 a
nd
199
9 co
nsist o
f the
follo
win
g:
At D
ece
mb
er 3
1, 20
00
, ba
nk
de
po
sits of
35
,96
8 m
illion
are
ple
dg
ed
as co
llate
ral fo
r certa
in sh
ort-te
rm b
orro
win
gs a
nd
are
sub
ject to
restrictio
n fro
m w
ithd
raw
al (se
e N
ote
11).
5. Marketable S
ecurities
Ma
rke
tab
le se
curitie
s as o
f De
cem
be
r 31, 2
00
0 a
nd
199
9 co
nsist o
f the
follo
win
g:
At D
ece
mb
er 3
1, 20
00
, ma
rke
tab
le se
curitie
s of
3,16
0 m
illion
are
restricte
d fro
m w
ithd
raw
al.
59
Asse
t
(1)C
ash
an
d ca
sh e
qu
ivale
nts
Ca
sh o
n h
an
d a
nd
in b
an
ks
Pa
ssbo
ok
acco
un
ts
Mo
ne
y ma
rke
t de
po
sit acco
un
ts
Fore
ign
curre
ncy d
ep
osits
To
tal ca
sh a
nd
cash
eq
uiva
len
ts
(2)
Sh
ort-te
rm fin
an
cial in
strum
en
ts
Insta
llme
nt a
nd
time
de
po
sits
Fore
ign
curre
ncy d
ep
osits
Tru
st de
po
sits
Oth
er fin
an
cial in
strum
en
ts
To
tal sh
ort-te
rm fin
an
cial in
strum
en
ts
Less: p
ortio
ns cla
ssified
as n
on
-curre
nt
To
tal
An
nu
al In
tere
st Ra
te (%
)
20
00–1
5.4 - 5.5–
5.9 - 13
0 - 7.3–
6.8
20
00
396,121
54,243,231
451,841,207
15,403,131
521,883,690
1,031,731,500
318,333,711–
60,072,500
1,410,137,711
(258,000)
1,409,879,711
199
9
2,770,492
43,081,819
480,095,523
881,951
526,829,785
438,401,514
145,441,850
15,896,324
50,071,000
649,810,688
(1,467,500)
648,343,188
Th
ou
san
ds o
f Wo
n
Asse
tA
nn
ua
l Inte
rest R
ate
(%)
Th
ou
san
ds o
f Wo
n
20
00
20
00
199
9
Be
ne
ficiary ce
rtificate
s5 - 6.8
672,708,231237,257,709
B0
nd
s5 - 6
632,262192,638
To
tal
673,340,493237,450,347
6. Trade Accounts and N
otes Receivable, and V
aluation at Present V
alue
Th
e o
utsta
nd
ing
ba
lan
ce o
f trad
e a
ccou
nts a
nd
no
tes re
ceiva
ble
sold
to fin
an
cial in
stitutio
ns a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
are
as
follo
ws (se
e N
ote
14):
Acco
un
ts wh
ich a
re va
lue
d a
t pre
sen
t valu
e u
nd
er re
sche
du
led
pa
yme
nt a
nd
lon
g-te
rm in
stallm
en
t tran
sactio
ns a
re a
s follo
ws:
7. Inventories
Inve
nto
ries a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
Inve
nto
ries a
re in
sure
d a
ga
inst fire
an
d o
the
r casu
alty lo
sses u
p to
2
,35
7,9
36
millio
n a
t De
cem
be
r 31, 2
00
0.
At D
ece
mb
er 3
1, 20
00
, 2
45
,58
3 m
illion
of la
nd
an
d co
nstru
ction
in p
rog
ress h
eld
for re
sale
are
inclu
de
d in
the
finish
ed
go
od
s an
d
me
rcha
nd
ise a
ccou
nt. R
ela
ted
inte
rest co
sts of
10,0
48
millio
n a
nd
2
9,8
85
millio
n h
ave
be
en
cap
italize
d fo
r the
yea
rs en
de
d D
ece
mb
er
31, 2
00
0 a
nd
199
9, re
spe
ctively.
60
Asse
tM
illion
s of W
on
20
00
199
9
Asse
t ba
cke
d se
curitie
s with
limite
d re
cou
rse–
1,953
Exp
ort a
ccou
nts a
nd
no
tes re
ceiva
ble
with
reco
urse
2,427,9931,523,803
Tra
de
no
tes re
ceiva
ble
with
reco
urse
243,981199,909
Tra
de
acco
un
ts rece
ivab
le w
itho
ut re
cou
rse128,895
113,626
Tra
de
acco
un
ts rece
ivab
le w
ith re
cou
rse71,015
–
Total2,871,884
1,839,291
Acco
un
tM
illion
s of W
on
Face
Va
lue
Disco
un
tP
rese
nt V
alu
e
Lon
g-te
rm in
stallm
en
t tran
sactio
ns
Lon
g-te
rm tra
de
rece
ivab
les
5,867375
5,492
Oth
er lo
ng
-term
rece
ivab
les
403,69458,034
345,660
Re
sche
du
led
Lon
g-te
rm tra
de
rece
ivab
les a
nd
oth
er a
ssets
5,6071,041
4,566
To
tal
415,16859,450
355,718
Inve
nto
ryM
illion
s of W
on
20
00
199
9
Finish
ed
go
od
s an
d m
erch
an
dise
737,544,326
572,945,964
Se
mifin
ishe
d g
oo
ds a
nd
wo
rk in
pro
cess
982,591,087666,500,256
Ra
w m
ate
rials a
nd
sup
plie
s952,276,658
909,922,532
Ma
teria
ls in tra
nsit
130,351,554112,010,900
Total2,802,763,625
2,261,379,652
8. P
roperty, Plant and Equipm
ent
Pro
pe
rty, pla
nt a
nd
eq
uip
me
nt a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
At D
ece
mb
er 3
1, 20
00
, certa
in p
ortio
ns o
f the
Co
mp
an
y’s p
rop
erty
, pla
nt a
nd
eq
uip
me
nt, u
p to
a m
axim
um
of
1,133
,413
millio
n, a
re
ple
dg
ed
as co
llate
ral fo
r vario
us lo
an
s from
Ko
rea
De
velo
pm
en
t Ba
nk
(see
No
te 12
).
As o
f De
cem
be
r 31, 2
00
0, p
rop
erty, p
lan
t an
d e
qu
ipm
en
t are
insu
red
ag
ain
st fire a
nd
oth
er ca
sua
lty losse
s an
d b
usin
ess in
terru
ptio
n lo
sses
up
to
26
,86
9,5
41 m
illion
an
d
6,3
36
,07
7 m
illion
, resp
ective
ly. Of th
e in
sure
d a
mo
un
t, Ko
rea
De
velo
pm
en
t Ba
nk
is the
be
ne
ficiary fo
r
78
9,6
21 m
illion
, he
ld a
s colla
tera
l for b
orro
win
gs.
At D
ece
mb
er 3
1, 20
00
an
d 19
99
, the
valu
e o
f lan
d b
ase
d o
n th
e p
oste
d p
rice issu
ed
by th
e K
ore
an
tax a
uth
ority is
1,27
7,3
25
millio
n a
nd
1,09
9,4
29
millio
n, re
spe
ctively.
Inte
rest co
sts of
82
,24
5 m
illion
an
d
45
,418
millio
n w
ere
cap
italize
d fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
, resp
ective
ly.
In a
ccord
an
ce w
ith th
e A
sset R
eva
lua
tion
Law
, on
Jan
ua
ry 1, 198
0, 19
82
, 199
8, a
nd
Ap
ril 1, 199
9, th
e C
om
pa
ny re
valu
ed
a su
bsta
ntia
l po
rtion
of its p
rop
erty
, pla
nt, e
qu
ipm
en
t an
d in
ve
stme
nts in
eq
uity
secu
rities b
y
3,0
54
,518
millio
n. T
he
rem
ain
ing
rev
alu
atio
n in
crem
en
ts of
1,216
,05
4 m
illion
, ne
t of re
valu
atio
n ta
x an
d cre
dits to
de
ferre
d fo
reig
n cu
rren
cy tran
slatio
n lo
sses, w
ere
cred
ited
to o
the
r cap
ital su
rplu
s,
a co
mp
on
en
t of sh
are
ho
lde
rs’ eq
uity.
Th
e C
om
pa
ny h
as a
lso re
verse
d th
e re
valu
atio
n o
f pro
pe
rty, pla
nt, e
qu
ipm
en
t an
d in
vestm
en
t pe
rform
ed
on
Ap
ril 1, 199
9 a
s allo
we
d fo
r in
the
Asse
t Re
valu
atio
n La
w fo
r asse
ts wh
ich a
re so
ld w
ithin
a ye
ar o
f the
reva
lua
tion
da
te. A
s a re
sult,
2,8
19 m
illion
wa
s de
du
cted
from
oth
er ca
pita
l surp
lus.
61
Pro
pe
rty, Pla
nt &
Eq
uip
me
nt
Millio
ns o
f Wo
n
20
00
199
9
Bu
ildin
gs a
nd
au
xiliary fa
cilities
2,420,800,4502,046,105,987
Ma
chin
ery a
nd
eq
uip
me
nt
12,498,044,6488,406,254,860
To
ols a
nd
fixture
s1,047,094,582
924,901,314
Stru
cture
s an
d o
the
r219,483,897
173,440,082
16,185,423,57711,550,702,243
Less: a
ccum
ula
ted
de
pre
ciatio
n(6,799,853,811)
(4,380,933,468)
9,385,569,7667,169,768,775
Lan
d1,778,542,402
1,708,831,071
Co
nstru
ction
in p
rog
ress
1,160,316,481943,651,433
To
tal
12,324,428,6499,822,251,279
9. Equity Investments
Eq
uity
inv
estm
en
ts in su
bsid
iarie
s an
d a
ffiliate
d co
mp
an
ies, a
nd
oth
er in
ve
stme
nts a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e
follo
win
g:
62
(1) Eq
uity in
vestm
en
ts in su
bsid
iarie
s an
d a
ffiliate
d co
mp
an
ies
Su
bsid
iarie
s:
Sa
msu
ng
Ele
ctron
ics Ca
na
da
, Inc.
Sa
msu
ng
Ele
ctron
ics Am
erica
, Inc.
Sa
msu
ng
Ele
ctron
ics Latin
oa
me
rica
Pa
na
ma
(Zo
ne
Libre
) S.A
.
Sa
msu
ng
Ele
ctron
ics Me
xican
a S
.A. d
e C
.V.
Sa
msu
ng
Ele
ctron
ics Arg
en
tina
S.A
.
Ca
ge
nt T
ech
no
log
ies, In
c.
Alp
ha
Pro
cesso
r, Inc.
Sa
msu
ng
Ele
ctron
ics Ibe
ria, S
.A.
Sa
msu
ng
Ele
ctron
ics Sve
nsk
a A
B
Sa
msu
ng
Ele
ctron
ics Hu
ng
aria
n C
o., Ltd
.
Sa
msu
ng
Ele
ctron
ica P
ortu
gu
esa
S.A
.
Sa
msu
ng
Ele
ctron
ics Fran
ce S
.A.
Sa
msu
ng
Eu
rop
e P
LC
Sa
msu
ng
Ele
ctron
ics Ho
ldin
g G
mb
H
Sa
msu
ng
Ele
ctron
ics Italia
, S.p
.A.
Sa
msu
ng
Ele
ctron
ics Be
ne
lux B
.V.
Sa
msu
ng
Ele
ctron
ics Po
lska
, Sp
.Zo
.O
Sa
msu
ng
Ele
ctron
ics So
uth
Africa
(Pty) Ltd
.
Sa
msu
ng
Ele
ctron
ics Ove
rsea
s B.V
.
Uzb
ek
istan
Sa
msu
ng
Ele
ctron
ica C
o., Ltd
.
Sa
msu
ng
Ele
ctron
ics Ind
ia P
rivate
, Ltd.
Sa
msu
ng
Ele
ctron
ics Ho
ng
Ko
ng
Co
., Ltd.
Sa
msu
ng
Ele
ctron
ics Ta
iwa
n C
o., Ltd
.
Sa
msu
ng
Ele
ctron
ics Su
zho
u S
em
icon
du
ctor C
o., Ltd
.
Sa
msu
ng
(Ch
ina
) Inve
stme
nt C
o., Ltd
Tia
njin
Sa
msu
ng
Ele
ctron
ics Disp
lay C
o., Ltd
.
Su
zho
u S
am
sun
g E
lectro
nics C
o., Ltd
.
Tia
njin
Sa
msu
ng
Ele
ctron
ics Co
., Ltd.
Sh
an
do
ng
Sa
msu
ng
Te
leco
mm
un
icatio
ns C
o., Ltd
.
Sa
msu
ng
Yo
ko
ha
ma
Re
sea
rch In
stitute
Sa
msu
ng
Ele
ctron
ics Au
stralia
Pty. Ltd
.
Sa
msu
ng
Ele
ctron
ics Ma
laysia
Sd
n. B
hd
.
Sa
msu
ng
Gu
lf Ele
ctron
ics Co
., Ltd.
P.T
. Sa
msu
ng
Ele
ctron
ics Ind
on
esia
Sa
msu
ng
Ele
ctron
ics Disp
lay (M
) Sd
n. B
hd
.
Co
ntin
ue
d;
Re
cord
ed
Bo
ok
Va
lue
37,409,624
350,001,625
63,895,606
39,171,013
37,310,963
20,334,100
17,602,340
60,795,407
16,424,831
49,339,949
11,307,056
35,616,262
162,689,875
47,226,773
47,154,194
40,316,777
15,623,487
3,595,491
2,302,079
4,041,131
7,583,935
65,292,556
9,171,375
82,671,064
48,623,694
21,251,186
47,268,539
49,238,518
17,805,913
65,845,110
33,718,954
26,197,362
10,973,267
27,913,474
40,043,788
Re
cord
ed
Bo
ok
Va
lue
32,929,230
45,440,513
33,029,905
32,714,719
31,361,130
18,970,664
40,996,621
62,271,067
12,480,220
49,027,338
10,235,514
31,877,434
177,064,807
58,537,194
43,982,797
37,706,970
9,456,425
11,670,423
10,648,885
5,936,797–
62,634,166
721,209
39,577,031
12,324,814
10,108,585
39,545,497
39,667,002
18,779,418
32,656,218
31,156,982
30,264,479
9,682,868
22,601,517
29,620,515
Ma
rke
t Va
lue
(Ne
t Bo
ok
Va
lue
)
37,068,405
373,057,625
55,551,280
42,820,958
38,081,434
19,745,210
26,514,993
75,865,753
16,329,882
46,970,685
12,038,192
36,928,045
190,442,863
58,022,145
48,240,321
36,442,709
15,780,637
4,139,733
24,728,566
2,624,966
8,224,621
61,451,381
1,524,856
80,373,051
35,559,892
19,017,566
45,774,348
50,262,573
19,498,302
65,845,110
32,971,530
29,272,560
13,528,188
35,271,021
41,867,063
Acq
uisitio
n
Co
st
37,910,597
752,108,617
43,842,300
30,767,040
50,227,700
22,162,492
32,189,788
65,221,118
16,153,454
48,397,117
12,594,046
39,433,410
179,626,805
77,607,622
56,778,556
38,334,024
20,097,600
39,829,558
119,898
3,341,000
6,444,200
48,397,188
1,524,856
46,189,260
36,427,936
9,895,816
60,432,457
47,930,825
13,307,035
33,991,706
40,457,800
4,378,136
7,976,308
56,910,316
21,876,246
Pe
rcen
tag
e
of O
wn
ersh
ip
100.00
100.00
100.00
100.00
100.00
91.48
87.50
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
59.17
82.41
85.82
59.00
100.00
100.00
100.00
100.00
100.00
75.00
20
00
199
9
Th
ou
san
ds o
f Wo
n
9. Equity Investments, Continued
63
Sa
msu
ng
Ind
ia E
lectro
nics, Ltd
.
Sa
msu
ng
Asia
Priva
te, Ltd
.
Sa
msu
ng
Vin
a E
lectro
nics C
o., Ltd
.
Th
ai S
am
sun
g E
lectro
nics C
o., Ltd
.
No
vita C
o., Ltd
.
Sa
msu
ng
Kw
an
gju
Ele
ctron
ics Co
., Ltd.
Sa
msu
ng
Ca
pita
l Co
., Ltd.
Sa
msu
ng
Ca
rd C
o., Ltd
.
ST
EC
O, Ltd
.
DN
S K
ore
a C
o., Ltd
.
Sa
msu
ng
Ele
ctron
ics Se
rvice C
o., Ltd
.
Ko
rea
Ele
ctron
ics & In
form
atio
n D
istribu
tion
Co
., Ltd.
Blu
ete
ck IT
L
Bo
kw
an
g V
FUN
D
Bo
kw
an
g X
FUN
D
SV
IC
Fun
d
SV
IC
Fun
d
SV
IC
Fun
d
SV
IC
Fun
d
SV
IC
Fun
d
Sa
msu
ng
Co
rnin
g M
icro-O
ptics C
o., Ltd
.
Sa
msu
ng
Th
om
som
-CS
F Co
., Ltd.
Sa
msu
ng
Gla
ss Am
erica
, Inc.
Prim
eT
el, Ltd
.
Tia
njin
To
ng
gu
an
g S
am
sun
g E
lectro
nics C
o., Ltd
.
Affilia
ted
com
pa
nie
s:
Sa
msu
ng
Po
rtug
al P
rod
ucto
s Ele
ctro-M
ech
an
icos S
.A.
Sa
msu
ng
Ele
ctron
ics (UK
), Ltd.
Syria
n-K
ore
an
Te
leco
mm
un
icatio
n E
qu
ipm
en
t
Ma
nu
factu
ring
Esta
blish
me
nt C
o., Ltd
.
Sa
msu
ng
Ele
ctron
ics Hu
izho
u C
o., Ltd
.
Sa
msu
ng
Jap
an
Co
., Ltd.
Un
ion
Op
tical C
o., Ltd
.
Sa
msu
ng
SD
I Co
., Ltd.
Sa
msu
ng
Ele
ctro-M
ech
an
ics Co
., Ltd.
Sa
msu
ng
Te
chw
in C
o., Ltd
.
Se
ou
l Co
mm
tech
Co
., Ltd.
Sa
msu
ng
Eco
no
mic R
ese
arch
Institu
te
Sa
msu
ng
SD
S C
o., Ltd
.
Co
ntin
ue
d;
Re
cord
ed
Bo
ok
Va
lue
21,261,110
89,033,174
16,079,981
29,371,870
29,000,155
277,079,813
263,587,477
422,344,859
18,353,237
6,146,792
33,814,936
39,591,631
33,219,004
6,329,003
9,000,200
9,948,323
30,893,377
20,444,785
102,692,786
29,741,079
26,701,530––––
1,742,504
7,122,282
4,578,192
23,721,093
37,176,293
1,274,366
488,122,167
405,271,665
222,859,819
12,037,741
18,087,984
28,057,349
Re
cord
ed
Bo
ok
Va
lue
15,387,943
53,907,380
15,677,406
25,416,928
23,090,236
155,753,593
222,920,398
234,398,940
14,217,607
3,941,894
32,934,818–––––––––––
2,509,254
14,218,067
28,425,751
2,487,701
6,305,140
3,325,921
37,876,046
53,351,029
3,153,721–
266,167,164
211,725,943
5,174,213
9,027,093
26,324,854
Ma
rke
t Va
lue
(Ne
t Bo
ok
Va
lue
)
20,569,458
66,333,455
16,273,828
34,255,673
29,142,399
284,948,785
230,215,509
397,694,988
18,729,136
17,686,472
36,790,237
38,692,144
29,993,255
6,329,003
9,000,200
9,948,323
30,893,377
20,444,785
102,692,786
29,741,079
26,701,530
133,752,226–––
1,766,443
8,857,024
4,578,192
27,244,272
82,082,042
1,274,366
457,120,673
387,230,169
147,717,981
12,758,519
18,116,210
33,544,429
Acq
uisitio
n
Co
st
15,526,467
20,454,044
13,531,704
37,422,945
29,991,151
192,675,696
230,849,938
153,387,755
12,239,960
6,542,382
29,999,990
30,000,000
22,993,240
5,000,000
9,000,000
9,900,000
29,700,000
19,800,000
98,500,000
29,700,000
28,135,800
135,000,000–––
2,123,880
8,280,489
2,060,925
16,390,839
47,766,973
17,388,905
423,721,523
359,237,063
196,321,791
4,191,977
17,880,000
12,752,735
Pe
rcen
tag
e
of O
wn
ersh
ip
73.87
70.00
81.62
91.50
96.14
94.25
75.03
56.59
51.00
61.08
83.33
96.77
100.00
83.33
81.82
99.00
99.00
99.00
65.67
99.00
50.00
50.00–––
24.15
5.17
49.00
44.88
49.00
20.00
19.32
22.80
22.93
30.30
29.80
26.27
20
00
199
9
Th
ou
san
ds o
f Wo
n
9. Equity Investments, Continued
At D
ece
mb
er 3
1, 20
00
, inve
stme
nts in
11 affilia
ted
com
pa
nie
s, inclu
din
g S
am
sun
g G
lass A
me
rica In
c. we
re n
ot va
lue
d u
sing
the
eq
uity
me
tho
d d
ue
to th
e im
ma
teria
lity of th
eir a
ssets to
the
fina
ncia
l state
me
nts o
f the
Co
mp
an
y.
At D
ece
mb
er 3
1, 20
00
, the
fina
ncia
l con
ditio
ns o
f inv
este
d co
mp
an
ies, su
ch a
s Ko
rea
Ho
usin
g G
ua
ran
tee
Co
., Ltd
., Ne
w IC
O G
lob
al
Co
mm
un
icatio
ns, S
am
sun
g E
lectro
nics M
osco
w S
ervice
Ce
nte
r Ltd., T
RL M
icrow
ave
Te
ch, In
c. an
d S
am
sun
g C
rosa
na
Join
t Sto
ck C
om
pa
ny
ha
ve d
ete
riora
ted
sign
ifican
tly. Acco
rdin
gly, th
ese
inve
stme
nts h
ave
be
en
writte
n d
ow
n a
nd
cha
rge
d to
curre
nt o
pe
ratio
ns.
Th
e cu
mu
lative
ne
t ga
in o
n th
e va
lua
tion
of in
vestm
en
ts in liste
d co
mp
an
ies o
f 4
57
,99
7 m
illion
as o
f De
cem
be
r 31, 2
00
0 is re
cord
ed
in
the
cap
ital a
dju
stme
nt a
ccou
nt.
10. Long-Term Financial Instrum
ents, Receivables and O
ther Assets
Lon
g-te
rm fin
an
cial in
strum
en
ts an
d o
the
r asse
ts as o
f De
cem
be
r 31, 2
00
0 a
nd
199
9 co
nsist o
f the
follo
win
g:
64
Un
itel C
o., Ltd
.
Sa
msu
ng
Co
rnin
g C
o., Ltd
.
Sa
msu
ng
Lion
s Co
., Ltd.
To
wa
Ko
rea
Co
., Ltd.
PO
SC
O H
üls C
o., Ltd
.
Sa
msu
ng
Co
rnin
g P
recisio
n G
lass C
o., Ltd
.
Th
e Jo
on
g-A
ng
Da
ily Ne
ws C
alifo
rnia
, Inc.
To
tal in
vestm
en
t in su
bsid
iarie
s, affilia
tes
(2) O
the
r inve
stme
nts
Inve
stme
nt in
listed
com
pa
nie
s
Inve
stme
nt in
un
listed
com
pa
nie
s
Se
curitie
s ma
rke
t stab
ilizatio
n fu
nd
Oth
er
To
tal o
the
r inve
stme
nts
To
tal in
vestm
en
ts
Re
cord
ed
Bo
ok
Va
lue
8,097,545
266,813,817–
1,477,250
31,258,890
98,648,359–
4,779,785,567
440,442,604
180,337,602
8,743,987
431,343
629,955,536
5,409,741,103
Re
cord
ed
Bo
ok
Va
lue–
234,741,156–
937,991
13,693,448–
3,509,432
2,856,280,021
2,898,807,045
122,658,461
18,760,587
153,538,343
3,193,764,436
6,050,044,457
Ma
rke
t Va
lue
(Ne
t Bo
ok
Va
lue
)
14,092,076
269,615,291
46,816
4,150,664
34,820,290
75,434,805–
4,886,678,412
440,442,604
161,472,369
8,743,987
750,658
611,409,618
5,498,088,030
Acq
uisitio
n
Co
st
5,213,925
94,263,035
275,000
800,000
17,200,000
116,140,060–
4,505,243,019
898,439,398
197,315,163
16,601,222
431,343
1,112,787,126
5,618,030,145
Pe
rcen
tag
e
of O
wn
ersh
ip
29.07
45.29
27.50
40.00
20.00
41.85–––––
20
00
19
99
Th
ou
san
ds o
f Wo
n
Asse
t
Lon
g-te
rm fin
an
cial in
strum
en
ts
Lon
g-te
rm tra
de
rece
ivab
les
Lon
g-te
rm lo
an
s (A)
Lon
g-te
rm d
ep
osits
Lon
g-te
rm p
rep
aid
exp
en
ses
Inta
ng
ible
asse
ts (B)
To
tal
258,000
2,817,779
60,075,540
411,152,293
486,509,110
265,416,250
1,226,228,972
1,467,500
16,583,583
366,164,492
457,313,823
472,116,096
246,103,450
1,559,748,944
Millio
ns o
f Wo
n
20
00
199
9
(A) A
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
, lon
g-te
rm lo
an
s inclu
din
g e
mp
loy
ee
loa
ns to
tale
d
58
,09
4,7
77
,00
0 a
nd
3
65
,67
4,4
21,0
00
,
resp
ective
ly.
(B) A
s o
f De
ce
mb
er 3
1, 20
00
an
d 19
99
, inta
ng
ible
as
se
ts in
clu
din
g in
telle
ctu
al p
rop
erty
righ
ts to
tale
d
25
6,3
47
,26
1,00
0 a
nd
24
3,2
03
,92
4,0
00
, resp
ective
ly.
11. Short-Term
Borrow
ings
Sh
ort-te
rm b
orro
win
gs a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
As o
f De
cem
be
r 31, 2
00
0. th
e C
om
pa
ny’s u
nu
sed
ba
nk
ove
rdra
ft facility is
34
0,2
83
millio
n (se
e N
ote
4). In
ad
ditio
n, ce
rtain
ba
nk
de
po
sits
are
ple
dg
ed
as co
llate
ral fo
r the
ab
ove
bo
rrow
ing
s.
12. Long-Term D
ebt
Lon
g-te
rm d
eb
t as o
f De
cem
be
r 31, 2
00
an
d 19
99
con
sists of th
e fo
llow
ing
:
(A) Lo
cal cu
rren
cy loa
ns a
s of D
ece
mb
er 3
1,20
0 a
nd
199
9 co
nsist o
f the
follo
win
g:
65
Bo
rrow
ing
s
Ba
nk
ove
rdra
ft facilitie
s
Usa
nce
fina
nce
To
tal
An
nu
al In
tere
st Ra
te (%
)
20
00
11.5-
14,217-
14,217
5,046
44,465
49,511
Th
ou
san
ds o
f Wo
n
20
00
199
9
Lon
g-T
erm
De
bt
Loca
l curre
ncy lo
an
s
Fore
ign
curre
ncy lo
an
s, in W
on
eq
uiva
len
ts
De
be
ntu
res
Less: cu
rren
t ma
turitie
s
To
tal
Re
fere
nce
(A)
(B)
(C)
98,271,686
1,234,528,597
1,351,000,000
2,683,800,283
(2,190,697,681)
493,102,602
272,833,344
1,587,280,784
2,174,950,124
4,035,064,252
(1,101,635,162)
2,933,429,090
Th
ou
san
ds o
f Wo
n
20
00
199
9
Ha
nvit B
an
k
Ko
rea
De
velo
pm
en
t Ba
nk
Ko
ok
min
Ba
nk
Ko
rea
Te
chn
olo
gy B
an
kin
g C
orp
ora
tion
Sa
msu
ng
Ca
rd C
o., Ltd
.
An
nu
al In
tere
st Ra
te (%
)
20
00
5 - 6.5
9.35 - 9.65
11.5 - 12.45
6.5
6.5
1,114,195
66,053,000
18,823,440
12,198,051
83,000
98,271,686
1,624,515
224,109,000
28,975,527
18,041,302
83,000
272,833,344
Th
ou
san
ds o
f Wo
n
20
00
199
9
12. Long-Term D
ebt, Continued
(B) Lo
ng
-term
de
bt d
en
om
ina
ted
in fo
reig
n cu
rren
cies a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
(C) D
eb
en
ture
s ou
tstan
din
g a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
At D
ece
mb
er 3
1, 20
00
, certa
in p
rop
erty
, pla
nt a
nd
eq
uip
me
nt a
re p
led
ge
d a
s colla
tera
l for th
e a
bo
ve
lon
g-te
rm d
eb
ts (see
No
te 8
). In
ad
ditio
n, th
e re
pa
yme
nt o
f certa
in lo
ng
-term
de
bts is g
ua
ran
tee
d b
y vario
us K
ore
an
fina
ncia
l institu
tion
s.
Ma
turitie
s of lo
ng
-term
de
bts o
utsta
nd
ing
, exclu
din
g p
rem
ium
s an
d d
iscou
nts, a
t De
cem
be
r 31, 2
00
0 a
re a
s follo
ws:
66
Fore
ign
De
no
min
ate
d D
eb
t
ING
Citib
an
k, N
.A.
Ko
rea
De
velo
pm
en
t Ba
nk
Ko
rea
Exch
an
ge
Ba
nk
Ha
nvit B
an
k
Ba
nk
of S
eo
ul
Ko
rea
De
velo
pm
en
t Lea
sing
Co
rpo
ratio
n a
nd
oth
ers
U. S
. Do
llar e
qu
ivale
nt o
f fore
ign
curre
ncie
s
Wo
n e
qu
ivale
nts (in
tho
usa
nd
s)
An
nu
al In
tere
st Ra
te (%
)
LIBO
R + 0.45
LIBO
R + 0.6
LIBO
R + 0.4-0.6
LIBO
R + 0.375
LIBO
R + 0.45
LIBO
R + 1
LIBO
R + 0.65-1.1
$–
129,444
539,084
37,778
10,000–
263,712
$980,018
1,234,528,597
$8,533
181,222
618,371
56,667
20,000
8,606
492,388
$1,385,787
1,587,280,784
Th
ou
san
ds o
f U.S
. Do
llars
20
00
199
9
Ou
tstan
din
g D
eb
en
ture
s
Gu
ara
nte
ed
by b
an
ks, p
aya
ble
thro
ug
h 2
00
1
Floa
ting
rate
no
tes p
aya
ble
in 2
00
1
Oth
er, p
aya
ble
thro
ug
h 2
00
3
Ad
d: p
rem
ium
s
Less: d
iscou
nts
To
tal
An
nu
al In
tere
st Ra
te (%
)
20
00
11 - 22
CD
+ 0.1
8 - 15.70
122,500,000
32,000,000
1,196,500,000
1,351,000,000––
1,351,000,000
538,550,000
32,000,000
1,646,000,000
2,216,550,000–
(41,599,876)
2,174,950,124
Th
ou
san
ds o
f Wo
n
20
00
199
9
Lon
g-T
erm
De
bt M
atu
rities
20
01
20
02
20
03
20
04
Th
ere
afte
r
To
tal
De
be
ntu
res
1,331,000,000
20,000,000–––
1,351,000,000
Fore
ign
Cu
rren
cy
Loa
ns
805,829,177
394,020,369
34,679,051––
1,234,528,597
Loca
l Cu
rren
cy
Loa
ns
53,868,504
36,986,222
7,006,660
410,300–
98,271,686
To
tal
2,190,697,681
451,006,591
41,685,711
410,300–
2,683,800,283
Th
ou
san
ds o
f Wo
n
13. Foreign Currency Notes and B
onds
Un
secu
red
fore
ign
curre
ncy n
ote
s an
d b
on
ds a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
(A) U
SD
de
no
min
ate
d stra
igh
t bo
nd
s
On
No
vem
be
r 1, 199
2, th
e C
om
pa
ny issu
ed
straig
ht b
on
ds o
f US
$2
00
millio
n a
t 99
.5%
of fa
ce va
lue
for th
e e
xpa
nsio
n o
f its sem
icon
du
ctor
pro
du
ct ma
nu
factu
ring
facilitie
s. Th
e b
on
ds b
ea
r inte
rest a
t 8.5
% p
er a
nn
um
an
d m
atu
re o
n N
ove
mb
er 1, 2
00
2. T
he
Co
mp
an
y red
ee
me
d
US
$4
4,0
55
,00
0 o
f the
se b
on
ds d
urin
g 19
98
an
d 19
99
.
(B) JP
Y d
en
om
ina
ted
straig
ht b
on
ds
On
Ap
ril 23
, 199
6, th
e C
om
pa
ny issu
ed
straig
ht b
on
ds o
f 2
0,0
00
millio
n a
t face
valu
e. T
he
bo
nd
s be
ar in
tere
st at 3
.3%
pe
r an
nu
m a
nd
ma
ture
on
Ap
ril 23
, 20
03
. Th
e C
om
pa
ny re
de
em
ed
5
,210
millio
n o
f the
se b
on
ds d
urin
g 19
98
.
(C) D
EM
de
no
min
ate
d stra
igh
t bo
nd
s
On
De
cem
be
r 16, 19
96
, the
Co
mp
an
y issue
d stra
igh
t bo
nd
s of D
EM
30
0 m
illion
at fa
ce va
lue
. Th
e b
on
ds b
ea
r inte
rest a
t 5.3
75
% p
er a
nn
um
an
d m
atu
re o
n D
ece
mb
er 16
, 20
01.
(D) U
SD
de
no
min
ate
d stra
igh
t bo
nd
s
On
Octo
be
r 2, 19
97
, the
Co
mp
an
y issue
d stra
igh
t bo
nd
s of U
S$
100
millio
n a
t 99
.85
% o
f face
valu
e. T
he
bo
nd
s be
ar in
tere
st at 7
.7%
pe
r
an
nu
m a
nd
ma
ture
on
Octo
be
r 1, 20
27
.
(E) U
SD
de
no
min
ate
d stra
igh
t bo
nd
s
On
Octo
be
r 2, 19
97
, the
Co
mp
an
y issue
d stra
igh
t bo
nd
s of U
S$
22
7 m
illion
at 9
3.11%
of fa
ce va
lue
. Th
e b
on
ds b
ea
r inte
rest a
t 7.4
5%
pe
r
an
nu
m a
nd
ma
ture
on
Octo
be
r 1, 20
02
. Th
e C
om
pa
ny re
de
em
ed
US
$7
4,13
5,0
00
of th
ese
bo
nd
s du
ring
199
8 a
nd
199
9.
67
EU
R d
en
om
ina
ted
floa
ting
rate
no
tes
US
D d
en
om
ina
ted
straig
ht b
on
ds
DE
M d
en
om
ina
ted
straig
ht b
on
ds
JPY
de
no
min
ate
d stra
igh
t bo
nd
s
DE
M d
en
om
ina
ted
straig
ht b
on
ds
US
D d
en
om
ina
ted
straig
ht b
on
ds
US
D d
en
om
ina
ted
straig
ht b
on
ds
Co
nve
rtible
bo
nd
s
Co
nve
rtible
bo
nd
s
Co
nve
rtible
bo
nd
s
Co
nve
rtible
bo
nd
s
Co
nve
rtible
bo
nd
s
Less: cu
rren
t ma
turitie
s
Ad
d: p
rem
ium
s
Less: d
iscou
nts
Ad
d: lo
ng
-term
accru
ed
inte
rest
Less: co
nve
rsion
righ
ts
To
tal
Du
e D
ate
May 16, 2000
Novem
ber 1, 2002
March 24, 2000
April 23, 2003
Decem
ber 16, 2001
October 1, 2027
October 1, 2002
Decem
ber 31, 2006
Decem
ber 31, 2007
February 1, 2004
July 30, 2002
January 31, 2003
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J)
-
196,443,917–
162,914,808
182,112,000
125,970,000
192,564,040
6,018,120
61,999,530
117,300,000
120,470,000
240,640,000
1,406,432,415
(182,112,000)–
(6,378,785)
14,018,755
(21,194,843)
1,210,765,542
122,420,352
178,619,403
176,481,000
165,920,136
176,481,000
114,540,000
175,091,571
18,911,736
178,650,695
117,300,000
120,470,000
240,640,000
1,785,525,893
(298,901,352)
1,003,631
(6,556,876)
3,110,418
(68,652,265)
1,415,529,449
Th
ou
san
ds o
f Wo
n
20
00
199
9
(F) Co
nve
rtible
bo
nd
s
On
Se
pte
mb
er 2
4, 19
96
, the
Co
mp
an
y issue
d fo
reig
n cu
rren
cy con
vertib
le b
on
ds o
f US
$15
0 m
illion
for th
e e
xpa
nsio
n o
f its ma
nu
factu
ring
facilitie
s. Th
e b
on
ds a
re liste
d o
n th
e Lo
nd
on
Sto
ck E
xcha
ng
e a
nd
will m
atu
re o
n D
ece
mb
er 3
1, 20
06
. A su
mm
ary o
f the
term
s of th
ese
bo
nd
s is as fo
llow
s:
• In
tere
st: 0.2
5%
pe
r an
nu
m p
aya
ble
an
nu
ally in
arre
ars o
n D
ece
mb
er 3
1.
• C
on
versio
n p
erio
d: O
n o
r afte
r No
vem
be
r 24
, 199
6 th
rou
gh
De
cem
be
r 15, 2
00
6.
• C
on
ve
rsion
price
: Su
bje
ct to a
dju
stme
nt b
ase
d o
n ce
rtain
ev
en
ts, 6
5,4
99
pe
r sha
re, w
ith a
fixed
exch
an
ge
rate
ap
plica
ble
to th
e
con
versio
n o
f 8
27
.3 to
US
$1.0
0.
• R
ed
em
ptio
n: R
ed
ee
ma
ble
at th
e o
ptio
n o
f the
bo
nd
ho
lde
rs on
Se
pte
mb
er 2
4, 2
00
1 at 13
1.1% o
f the
prin
cipa
l am
ou
nt, a
nd
at th
e o
ptio
n o
f
the
Co
mp
an
y at a
ny tim
e o
n o
r afte
r Octo
be
r 24
, 199
6 a
t a d
eclin
ing
red
em
ptio
n p
rice. H
ow
eve
r, no
such
red
em
ptio
n m
ay b
e m
ad
e p
rior to
Se
pte
mb
er 2
4, 2
00
1 un
less th
e clo
sing
price
of th
e C
om
pa
ny’s co
mm
on
stock
ha
s rea
che
d 13
5%
of th
e co
nve
rsion
price
for a
stipu
late
d
pe
riod
.
Th
e C
om
pa
ny
reco
rde
d
51,9
69
millio
n o
f con
sid
era
tion
for co
nv
ers
ion
righ
ts, th
e d
iffere
nce
be
twe
en
the
no
min
al v
alu
e a
nd
the
disco
un
ted
pre
sen
t valu
e a
t a 5
.79
6%
gu
ara
nte
ed
retu
rn ra
te, a
s an
ad
justm
en
t to d
eb
en
ture
s an
d sh
are
ho
lde
rs’ eq
uity re
late
d to
the
issua
nce
of fo
reig
n cu
rren
cy co
nv
ertib
le b
on
ds. T
he
con
ve
rsion
righ
ts acco
un
t is am
ortize
d u
sing
the
effe
ctive
inte
rest m
eth
od
, an
d
am
ortiza
tion
of
22
5 m
illion
wa
s reco
gn
ized
as in
tere
st exp
en
se d
urin
g 2
00
0.
Du
ring
199
7 a
nd
199
9, U
S$
72
,44
0,0
00
an
d U
S$
54
,62
0,0
00
wo
rth o
f con
vertib
le b
on
ds w
ere
con
verte
d in
to 8
23
,35
2 a
nd
68
9,8
56
sha
res o
f
com
mo
n sto
ck a
t the
con
versio
n p
rice o
f 7
2,7
84
an
d
65
,49
9 p
er sh
are
, resp
ective
ly.
Du
ring
20
00
, US
$15
,64
0,0
00
of co
nve
rtible
bo
nd
s we
re co
nve
rted
into
197
,54
0 sh
are
s of co
mm
on
stock
at th
e co
nve
rsion
price
of
65
,49
9
pe
r sha
re. In
rela
tion
to th
e co
nve
rsion
to co
mm
on
stock
, the
Co
mp
an
y reco
rde
d
1,39
8 m
illion
as o
the
r cap
ital su
rplu
s, the
diffe
ren
ce
be
twe
en
the
con
versio
n rig
ht p
rice a
nd
the
rela
ted
con
side
ratio
n fo
r con
versio
n rig
hts.
(G) C
on
vertib
le b
on
ds
On
Jun
e 2
6, 19
97
, the
Co
mp
an
y issu
ed
fore
ign
curre
ncy
con
ve
rtible
bo
nd
s of U
S$
30
0 m
illion
for th
e e
xpa
nsio
n o
f its ma
nu
factu
ring
facilitie
s. Th
e b
on
ds a
re liste
d o
n th
e Lo
nd
on
Sto
ck E
xcha
ng
e a
nd
will m
atu
re o
n D
ece
mb
er 3
1, 20
07
. A su
mm
ary o
f the
term
s of th
ese
bo
nd
s is as fo
llow
s:
• In
tere
st: 0%
• C
on
versio
n p
erio
d: O
n o
r afte
r July 2
6, 19
97
thro
ug
h D
ece
mb
er 15
, 20
07
.
• C
on
ve
rsion
price
: Su
bje
ct to a
dju
stme
nt b
ase
d o
n ce
rtain
ev
en
ts, 113
,35
1 pe
r sha
re, w
ith a
fixed
exch
an
ge
rate
ap
plica
ble
to th
e
con
versio
n o
f 8
88
.5 to
US
$1.0
0.
• R
ed
em
ptio
n: R
ed
ee
ma
ble
at th
e o
ptio
n o
f the
bo
nd
ho
lde
rs on
Jun
e 2
6, 2
00
2 a
t 131.1%
of th
e p
rincip
al a
mo
un
t, an
d a
t the
op
tion
of th
e
Co
mp
an
y at a
ny tim
e o
n o
r afte
r Jun
e 2
6, 19
99
at a
de
clinin
g re
de
mp
tion
price
. Ho
we
ver, n
o su
ch re
de
mp
tion
ma
y be
ma
de
prio
r to Ju
ne
26
, 20
02
un
less th
e clo
sing
price
of th
e C
om
pa
ny’s co
mm
on
stock
ha
s rea
che
d 13
5%
of th
e co
nve
rsion
price
for a
stipu
late
d p
erio
d.
Th
e C
om
pa
ny
reco
rde
d
115,6
78
millio
n o
f con
sid
era
tion
for co
nv
ers
ion
righ
ts, th
e d
iffere
nce
be
twe
en
the
no
min
al v
alu
e a
nd
the
disco
un
ted
pre
sen
t valu
e a
t a 5
.55
8%
gu
ara
nte
ed
retu
rn ra
te, a
s an
ad
justm
en
t to d
eb
en
ture
s an
d sh
are
ho
lde
rs’ eq
uity re
late
d to
the
issua
nce
of fo
reig
n cu
rren
cy co
nv
ertib
le b
on
ds. T
he
con
ve
rsion
righ
ts acco
un
t is am
ortize
d u
sing
the
effe
ctive
inte
rest m
eth
od
, an
d
am
ortiza
tion
of
2,2
36
millio
n w
as re
cog
nize
d a
s inte
rest e
xpe
nse
du
ring
20
00
.
Du
ring
199
8 a
nd
199
9, U
S$
50
0,0
00
an
d U
S$
98
,43
0,0
00
wo
rth o
f con
vertib
le b
on
ds w
ere
con
verte
d in
to co
mm
on
stock
at th
e co
nve
rsion
price
of
123
,63
5 a
nd
113
,35
1 pe
r sha
re, re
spe
ctively.
Du
ring
20
00
, US
$13
1,29
0,0
00
wo
rth o
f con
vertib
le b
on
ds w
ere
con
verte
d in
to 1,0
29
,06
7 sh
are
s of co
mm
on
stock
at th
e co
nve
rsion
price
of
113,3
51 p
er sh
are
. In re
latio
n to
the
con
versio
n to
com
mo
n sto
ck, th
e C
om
pa
ny re
cord
ed
9
,64
7 m
illion
as o
the
r cap
ital su
rplu
s, the
diffe
ren
ce b
etw
ee
n th
e co
nve
rsion
righ
t price
an
d th
e re
late
d co
nsid
era
tion
for co
nve
rsion
righ
ts.
(H) C
on
vertib
le b
on
ds
On
Feb
rua
ry 1, 199
9, th
e C
om
pa
ny issu
ed
fore
ign
curre
ncy co
nve
rtible
bo
nd
s of U
S$
100
millio
n to
Inte
l Co
rpo
ratio
n w
hich
will m
atu
re o
n
Feb
rua
ry 1, 20
04
. A su
mm
ary o
f the
term
s of th
ese
bo
nd
s is as fo
llow
s:
• In
tere
st: 5%
pe
r an
nu
m p
aya
ble
an
nu
ally in
arre
ars o
n Fe
bru
ary 1.
• C
on
versio
n p
erio
d: O
n o
r afte
r Ma
y 2, 19
99
thro
ug
h Ja
nu
ary 2
1, 20
04
.
• C
on
ve
rsion
price
: Su
bje
ct to a
dju
stme
nt b
ase
d o
n ce
rtain
ev
en
ts, 10
8,4
65
pe
r sha
re, w
ith a
fixed
exch
an
ge
rate
ap
plica
ble
to th
e
con
versio
n o
f 1,17
3 to
US
$1.0
0.
68
(I) Co
nve
rtible
bo
nd
s
On
July 3
0, 19
99
, the
Co
mp
an
y issue
d fo
reig
n cu
rren
cy con
vertib
le b
on
ds o
f US
$10
0 m
illion
to A
pp
le C
om
pu
ter, In
c. wh
ich w
ill ma
ture
on
July 3
0, 2
00
2. A
sum
ma
ry of th
e te
rms o
f the
se b
on
ds is a
s follo
ws:
• In
tere
st: 2%
pe
r an
nu
m p
aya
ble
an
nu
ally in
arre
ars o
n D
ece
mb
er 3
1.
• C
on
versio
n p
erio
d: O
n o
r afte
r July 3
0, 2
00
0 th
rou
gh
July 2
0, 2
00
2.
• C
on
ve
rsion
price
: Su
bje
ct to a
dju
stme
nt b
ase
d o
n ce
rtain
ev
en
ts, 2
19,0
50
pe
r sha
re, w
ith a
fixed
exch
an
ge
rate
ap
plica
ble
to th
e
con
versio
n o
f 1,2
04
.7 to
US
$1.0
0.
Th
e C
om
pa
ny re
cog
nize
d in
tere
st exp
en
se u
sing
a 5
% e
ffective
inte
rest ra
te. T
he
diffe
ren
ce b
etw
ee
n th
e e
ffective
an
d g
ua
ran
tee
d re
turn
rate
wa
s cred
ited
to lo
ng
-term
accru
ed
inte
rest e
xpe
nse
. Th
e a
dd
ition
al in
tere
st exp
en
se o
f 3
,69
0 m
illion
wa
s cred
ited
to lo
ng
-term
accru
ed
inte
rest e
xpe
nse
du
ring
20
00
.
(J) Co
nve
rtible
bo
nd
s
On
Octo
be
r 15, 19
99
, the
com
pa
ny issu
ed
fore
ign
curre
ncy co
nve
rtible
bo
nd
s of U
S$
20
0 m
illion
to D
ell C
om
pu
ter C
orp
ora
tion
wh
ich w
ill
ma
ture
on
Jan
ua
ry 31, 2
00
3. A
sum
ma
ry of th
e te
rms o
f the
se b
on
ds is a
s follo
ws:
• In
tere
st: 2%
pe
r an
nu
m p
aya
ble
an
nu
ally in
arre
ars o
n D
ece
mb
er 3
1.
• C
on
versio
n p
erio
d: O
n o
r afte
r Octo
be
r 15, 2
00
0 th
rou
gh
Jan
ua
ry 16, 2
00
3.
• C
on
ve
rsion
price
: Su
bje
ct to a
dju
stme
nt b
ase
d o
n ce
rtain
ev
en
ts, 2
60
,00
0 p
er sh
are
, with
a fixe
d e
xcha
ng
e ra
te a
pp
licab
le to
the
con
versio
n o
f 1,2
03
.2 to
US
$1.0
0.
Th
e C
om
pa
ny re
cog
nize
d in
tere
st exp
en
se u
sing
a 5
% e
ffective
inte
rest ra
te. T
he
diffe
ren
ce b
etw
ee
n th
e e
ffective
an
d g
ua
ran
tee
d ra
te w
as
cred
ited
to lo
ng
-term
accru
ed
inte
rest e
xpe
nse
. Th
e a
dd
ition
al in
tere
st exp
en
se o
f 7
,218
millio
n w
as cre
dite
d to
lon
g-te
rm a
ccrue
d
inte
rest e
xpe
nse
du
ring
20
00
.
14. Comm
itments and Contingencies
• A
t De
cem
be
r 31, 2
00
0, th
e C
om
pa
ny is co
ntin
ge
ntly lia
ble
for g
ua
ran
tee
s of in
de
bte
dn
ess, p
rincip
ally fo
r rela
ted
pa
rties, a
pp
roxim
atin
g
54
,183
millio
n a
nd
US
$1,5
65
,85
7,0
00
. In a
dd
ition
, at D
ece
mb
er 3
1, 20
00
, the
Co
mp
an
y pro
vide
d g
ua
ran
tee
s of co
ntra
ct fulfillm
en
t for
Iljin H
ea
vy Ind
ustrie
s Co
., Ltd. in
the
am
ou
nt o
f 1,6
78
millio
n.
• A
t De
cem
be
r 31, 2
00
0, th
e C
om
pa
ny h
as a
tota
l 142
of te
chn
ical a
ssistan
ce a
gre
em
en
ts with
certa
in fo
reig
n co
mp
an
ies. T
ota
l roya
lty
exp
en
se in
curre
d in
rela
tion
to th
ese
ag
ree
me
nts fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
am
ou
nts to
ap
pro
xima
tely
77
4, 118
millio
n a
nd
7
43
,418
millio
n, re
spe
ctively.
• T
he
Co
mp
an
y pro
vide
d p
rod
uct w
arra
ntie
s for ce
rtain
go
od
s sold
an
d is in
sure
d fo
r the
fulfillm
en
t of su
ch w
arra
ntie
s.
• A
t De
cem
be
r 31, 2
00
0, th
e C
om
pa
ny h
as e
nte
red
into
lea
se a
gre
em
en
ts with
seve
ral le
asin
g co
mp
an
ies th
at a
re re
cog
nize
d a
s dire
ct
fina
ncin
g le
ase
s. Th
ese
lea
se a
gre
em
en
ts are
sum
ma
rized
as fo
llow
s:
•S
che
du
led
futu
re le
ase
pa
yme
nts, n
et o
f inte
rest, w
hich
are
also
inclu
de
d in
lon
g-te
rm d
eb
t (see
No
te 12
), are
as fo
llow
s:
69
Acco
un
t
Ma
chin
ery a
nd
eq
uip
me
nt
Acq
uisitio
n C
ost
712,678
De
pre
ciatio
n E
xpe
nse
Ch
arg
ed
to
20
00
Op
era
tion
s
137,187
Millio
ns o
f Wo
n
Lea
se P
aym
en
t Sch
ed
ule
20
01
20
02
20
03
To
tal
Th
ou
san
ds o
f Wo
n
238,001,939
92,129,257
2,066,818
332,198,014
•In
ad
ditio
n, a
t De
cem
be
r 31, 2
00
0, th
e C
om
pa
ny h
as e
nte
red
into
lea
se a
gre
em
en
ts tha
t we
re re
cog
nize
d a
s op
era
ting
lea
ses. R
ela
ted
ren
tal p
aym
en
ts we
re ch
arg
ed
to o
pe
ratio
ns a
s incu
rred
. Re
nta
l exp
en
se in
curre
d u
nd
er th
ese
op
era
ting
lea
se a
gre
em
en
ts am
ou
nts to
40
7 m
illion
for th
e ye
ar e
nd
ed
De
cem
be
r 31, 2
00
0, a
nd
futu
re re
nta
l pa
yme
nts o
f US
$10
8,0
00
are
du
e w
ithin
a ye
ar.
• A
s of D
ece
mb
er 3
1, 20
00
, the
Co
mp
an
y ha
s en
tere
d in
to se
ven
forw
ard
exch
an
ge
con
tracts w
ith va
riou
s fore
ign
an
d K
ore
an
fina
ncia
l
institu
tion
s to h
ed
ge
curre
ncy risk
on
fore
ign
curre
ncy lo
ng
-term
de
bts. In
ad
ditio
n, th
e C
om
pa
ny h
as e
nte
red
into
thre
e in
tere
st rate
swa
p
con
tracts w
ith va
riou
s fore
ign
an
d K
ore
an
fina
ncia
l institu
tion
s to h
ed
ge
inte
rest ra
te risk
on
floa
ting
-rate
fore
ign
curre
ncy lo
ng
-term
de
bts.
•Fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
, the
Co
mp
an
y reco
gn
ized
ga
ins o
f 9
,06
9 m
illion
an
d lo
sses o
f 8
,97
1 millio
n, ch
arg
ed
to cu
rren
t
op
era
tion
s, from
the
valu
atio
n o
f forw
ard
exch
an
ge
con
tracts. In
ad
ditio
n, fro
m th
e va
lua
tion
of in
tere
st rate
swa
p co
ntra
cts, the
Co
mp
an
y
reco
gn
ized
losse
s of
83
millio
n, ch
arg
ed
to cu
rren
t op
era
tion
s, an
d d
efe
rred
3
,27
2 m
illion
, cha
rge
d to
cap
ital a
dju
stme
nt, o
f wh
ich
127
millio
n is e
xpe
cted
to b
e re
alize
d b
y De
cem
be
r 31, 2
00
1.
• A
s of D
ece
mb
er 3
1, 20
00
, the
Co
mp
an
y ha
s en
tere
d in
to a
n a
gre
em
en
t to issu
e a
sset b
ack
ed
secu
rities b
ase
d o
n e
xpo
rt acco
un
ts an
d
no
tes re
ceiva
ble
with
Atla
ntic A
sset S
ecu
ritizatio
n C
orp
ora
tion
for u
p to
US
$10
0 m
illion
, an
ag
ree
me
nt to
disco
un
t trad
e n
ote
s rece
ivab
le
with
thre
e K
ore
an
ba
nk
s for u
p to
3
00
,00
0 m
illion
an
d a
cred
it sale
s facility a
gre
em
en
t with
Ha
nvit B
an
k fo
r up
to
20
0,0
00
millio
n (se
e
No
te 6
).
• A
t De
cem
be
r 31, 2
00
0 th
e C
om
pa
ny h
as b
ee
n n
am
ed
as a
de
fen
da
nt in
thre
e le
ga
l actio
ns fo
r alle
ge
d p
ate
nt in
fring
em
en
ts an
d o
ne
leg
al
actio
n fo
r bre
ach
of co
ntra
ct, an
d a
s the
pla
intiff fo
r two
leg
al a
ction
s for p
ate
nt in
fring
em
en
ts an
d tw
o fo
r un
pa
id d
eb
ts in a
fore
ign
cou
ntry
. In a
dd
ition
, the
Co
mp
an
y is a
pa
rty to
va
riou
s oth
er le
ga
l claim
s an
d p
roce
ed
ing
s in K
ore
a, a
ll of w
hich
are
pe
nd
ing
as o
f
De
cem
be
r 31, 2
00
0. T
he
Co
mp
an
y’s ma
na
ge
me
nt b
elie
ves th
at, a
ltho
ug
h th
e o
utco
me
of th
ese
ma
tters is u
nce
rtain
, the
reso
lutio
n o
f
the
se m
atte
rs will n
ot h
ave
a m
ate
rial a
dve
rse e
ffect o
n th
e o
pe
ratio
ns o
r fina
ncia
l po
sition
of th
e C
om
pa
ny.
• A
t De
cem
be
r 31, 2
00
0, s
ix p
rom
iss
ory
no
tes
tota
ling
14
,175
millio
n, a
nd
15 b
lan
k n
ote
s a
nd
che
cks
we
re p
rov
ide
d to
fina
ncia
l
institu
tion
s as co
llate
ral fo
r ba
nk
bo
rrow
ing
s an
d fo
r the
fulfillm
en
t of ce
rtain
con
tracts.
• In
Jun
e 19
99
, Sa
msu
ng
Mo
tors In
c. (“SM
I”), an
affilia
te o
f the
Co
mp
an
y, filed
a p
etitio
n fo
r cou
rt rece
iversh
ip. In
con
ne
ction
with
this
pe
tition
, the
Co
mp
an
y an
d 3
0 S
am
sun
g G
rou
p a
ffiliate
s (the
“Affilia
tes”) e
nte
red
into
an
ag
ree
me
nt w
ith th
e in
stitutio
na
l cred
itors (“th
e
Cre
dito
rs”) of S
MI in
Au
gu
st, 199
9. In
acco
rda
nce
with
this a
gre
em
en
t, the
Co
mp
an
y an
d th
e A
ffiliate
s ag
ree
d to
sell 3
,50
0,0
00
sha
res o
f
Sa
msu
ng
Life In
sura
nce
Co
., Ltd. sto
ck a
nd
tran
sfer th
e p
roce
ed
s to th
e C
red
itors in
con
ne
ction
with
the
pe
tition
for co
urt re
ceive
rship
of
SM
I by D
ece
mb
er 3
1, 20
00
. In th
e e
ven
t tha
t the
sale
pro
cee
ds fa
ll sho
rt of
2,4
50
,00
0 m
illion
, the
Co
mp
an
y an
d th
e A
ffiliate
s ha
ve
ag
ree
d to
com
pe
nsa
te th
e C
red
itors fo
r the
sho
rtfall b
y o
the
r me
an
s, inclu
din
g p
articip
atio
n in
an
y e
qu
ity o
fferin
g o
r sub
ord
ina
ted
de
be
ntu
res issu
ed
by th
e C
red
itors. A
ny p
roce
ed
s in e
xcess o
f 2
,45
0,0
00
millio
n a
re to
be
distrib
ute
d to
the
Co
mp
an
y an
d th
e A
ffiliate
s.
•A
s of D
ece
mb
er 3
1, 20
00
, the
sha
res in
Sa
msu
ng
Life In
sura
nce
Co
., Ltd. w
ere
no
t sold
an
d ce
rtain
sha
reh
old
ers o
f the
Co
mp
an
y ha
ve
filed
an
inju
nctio
n a
ga
inst th
e d
irecto
rs of th
e C
om
pa
ny, a
lleg
ing
tha
t the
dire
ctors w
ere
actin
g in
con
trave
ntio
n to
the
law
wh
en
en
terin
g
into
this a
gre
em
en
t an
d a
ccord
ing
ly, tha
t this a
gre
em
en
t is void
. Th
e u
ltima
te e
ffect o
f the
se m
atte
rs on
the
fina
ncia
l po
sition
of th
e
Co
mp
an
y a
s of th
e b
ala
nce
she
et d
ate
can
no
t rea
son
ab
ly b
e d
ete
rmin
ed
, an
d a
ccord
ing
ly, n
o a
dju
stme
nts h
av
e b
ee
n m
ad
e in
the
acco
mp
an
ying
fina
ncia
l state
me
nts in
rela
tion
to th
ese
ma
tters.
• B
eg
inn
ing
in 19
97
, Ko
rea
an
d o
the
r cou
ntrie
s in th
e A
sia P
acific re
gio
n e
xpe
rien
ced
a se
vere
con
tractio
n in
sub
stan
tially a
ll asp
ects o
f
the
ir eco
no
mie
s. Th
is situa
tion
is com
mo
nly
refe
rred
to a
s the
199
7 A
sian
fina
ncia
l crisis. In re
spo
nse
to th
is situa
tion
, the
Ko
rea
n
go
vern
me
nt a
nd
the
priva
te se
ctor b
eg
an
imp
lem
en
ting
structu
ral re
form
s to h
istorica
l bu
sine
ss pra
ctices.
•T
he
Ko
rea
n e
con
om
y is curre
ntly e
xpe
rien
cing
ad
ditio
na
l difficu
lties, p
articu
larly in
the
are
as o
f restru
cturin
g p
rivate
en
terp
rises a
nd
refo
rmin
g th
e b
an
kin
g in
du
stry. T
he
Ko
rea
n g
ov
ern
me
nt co
ntin
ue
s to a
pp
ly p
ressu
re to
Ko
rea
n co
mp
an
ies to
restru
cture
into
mo
re
efficie
nt a
nd
pro
fitab
le firm
s. Th
e b
an
kin
g in
du
stry is curre
ntly u
nd
erg
oin
g co
nso
lida
tion
s an
d sig
nifica
nt u
nce
rtain
ty exists w
ith re
ga
rd to
the
ava
ilab
ility of sh
ort-te
rm fin
an
cing
du
ring
the
com
ing
yea
r. Th
e C
om
pa
ny m
ay b
e e
ithe
r dire
ctly or in
dire
ctly affe
cted
by th
e situ
atio
n
de
scribe
d a
bo
ve.
•T
he
acco
mp
an
ying
fina
ncia
l state
me
nts re
flect m
an
ag
em
en
t’s curre
nt a
ssessm
en
t of th
e im
pa
ct to d
ate
of th
e e
con
om
ic situa
tion
on
the
fina
ncia
l po
sition
of th
e C
om
pa
ny. A
ctua
l resu
lts ma
y diffe
r ma
teria
lly from
ma
na
ge
me
nt’s cu
rren
t asse
ssme
nt.
70
15. Retained Earnings
Re
tain
ed
ea
rnin
gs a
s of D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sist of th
e fo
llow
ing
:
(A) T
he
Ko
rea
n C
om
me
rcial C
od
e re
qu
ires th
e C
om
pa
ny to
ap
pro
pria
te a
s a le
ga
l rese
rve a
n a
mo
un
t eq
ua
l to a
min
imu
m o
f 10%
of a
nn
ua
l
cash
divid
en
ds d
ecla
red
un
til the
rese
rve e
qu
als 5
0%
of ca
pita
l stock
. Th
is rese
rve is n
ot a
vaila
ble
for th
e p
aym
en
t of ca
sh d
ivide
nd
s,
bu
t ma
y be
tran
sferre
d to
cap
ital sto
ck o
r use
d to
red
uce
the
accu
mu
late
d d
eficit, if a
ny.
(B) P
urs
ua
nt to
the
Ta
x E
xe
mp
tion
an
d R
ed
uctio
n C
on
trol L
aw
, the
Co
mp
an
y is
req
uire
d to
ap
pro
pria
te a
s a
res
erv
e fo
r bu
sin
es
s
ratio
na
lizatio
n a
n a
mo
un
t eq
ua
l to th
e e
xem
ptio
n o
f inco
me
taxe
s resu
lting
from
inve
stme
nt ta
x cred
its an
d ce
rtain
de
du
ction
s from
taxa
ble
inco
me
spe
cified
by su
ch la
w. T
his re
serve
ma
y be
use
d fo
r the
red
uctio
n o
f the
accu
mu
late
d d
eficit, if a
ny, o
r tran
sferre
d to
cap
ital sto
ck.
(C) In
acco
rda
nce
with
the
Re
gu
latio
n fo
r Se
curitie
s Issua
nce
an
d D
isclosu
re, th
e C
om
pa
ny
is req
uire
d to
ap
pro
pria
te a
s a re
serv
e fo
r
imp
rove
me
nt o
f fina
ncia
l structu
re a
n a
mo
un
t eq
ua
l to a
t lea
st 50
% o
f the
ne
t extra
ord
ina
ry ga
in o
n d
ispo
sal o
f pro
pe
rty, pla
nt a
nd
eq
uip
me
nt a
nd
10%
of n
et e
arn
ing
s for e
ach
yea
r un
til sha
reh
old
ers’ e
qu
ity eq
ua
ls 30
% o
f tota
l asse
ts. Th
is rese
rve is n
ot a
vaila
ble
for
pa
yme
nt o
f cash
divid
en
ds, b
ut m
ay b
e tra
nsfe
rred
to ca
pita
l stock
or u
sed
to re
du
ce th
e a
ccum
ula
ted
de
ficit, if an
y.
(D) P
ursu
an
t to K
ore
an
tax la
w, th
e C
om
pa
ny is a
llow
ed
to cla
im a
tax d
ed
uctio
n in
de
term
inin
g ta
xab
le in
com
e fo
r the
am
ou
nts o
f reta
ine
d
ea
rnin
gs a
pp
rop
riate
d to
rese
rve
s for o
ve
rsea
s ma
rke
t de
ve
lop
me
nt, o
ve
rsea
s inv
estm
en
t losse
s, tech
no
log
y d
ev
elo
pm
en
t, exp
ort
losse
s an
d lo
sses o
n d
ispo
sal o
f trea
sury sto
ck. T
he
se a
mo
un
ts are
no
t ava
ilab
le fo
r divid
en
ds u
ntil u
sed
for th
e sp
ecifie
d p
urp
ose
s or
reve
rsed
.
(E) T
he
rese
rve fo
r facilitie
s rep
rese
nts a
mo
un
ts ap
pro
pria
ted
by th
e C
om
pa
ny fo
r cap
ital e
xpe
nd
iture
s an
d m
ay b
e u
sed
for a
ny p
urp
ose
thro
ug
h a
sha
reh
old
ers’ re
solu
tion
.
16. Dividends
On
Jun
e 3
0, 2
00
0 a
nd
199
9, th
e C
om
pa
ny d
ecla
red
a 10
% ca
sh d
ivide
nd
to sh
are
ho
lde
rs of co
mm
on
stock
an
d p
refe
rred
stock
as a
n in
terim
divid
en
d fo
r the
six-mo
nth
pe
riod
en
de
d Ju
ne
30
, 20
00
an
d 19
99
. A ca
sh d
ivide
nd
of
85
,88
6 m
illion
an
d
84
,66
4 m
illion
wa
s pa
id o
n Ju
ne
30
, 20
00
an
d 19
99
resp
ective
ly.
71
Re
tain
ed
Ea
rnin
gs
Ap
pro
pria
ted
:
Leg
al re
serve
Re
serve
for b
usin
ess ra
tion
aliza
tion
Re
serve
for im
pro
vem
en
t of fin
an
cial stru
cture
Re
serve
for o
verse
as m
ark
et d
eve
lop
me
nt
Re
serve
for o
verse
as in
vestm
en
t losse
s
Re
serve
for te
chn
olo
gy d
eve
lop
me
nt
Re
serve
for e
xpo
rt losse
s
Re
serve
for lo
ss on
disp
osa
l of tre
asu
ry stock
Re
serve
for fa
cilities in
vestm
en
t
Un
ap
pro
pria
ted
:
To
tal
Re
fere
nce
(A)
(B)
(C)
(D)
(D)
(D)
(D)
(D)
(E)
440,789,000
2,512,100,829
204,815,000
510,750,423
164,982,454
3,838,397,908
167,749,074
200,000,000
2,714,811,000
10,754,395,688
31,409
10,754,427,097
387,789,000
1,512,100,829
204,815,000
548,741,108
213,382,454
2,023,097,908
217,118,059–
134,615,000
5,241,659,358
31,989
5,241,691,347
Th
ou
san
ds o
f Wo
n
20
00
199
9
Th
e y
ea
r-en
d ca
sh d
ivid
en
d fo
r the
prio
r fiscal y
ea
r wa
s 3
42
,72
9 m
illion
. For th
e y
ea
r en
de
d D
ece
mb
er 3
1, 20
00
, a ca
sh d
ivid
en
d o
f
42
2,6
70
millio
n (co
mm
on
stock
: 50
%, p
refe
rred
stock
: 51%
) exclu
din
g th
e in
terim
divid
en
d is p
rop
ose
d fo
r the
ge
ne
ral sh
are
ho
lde
rs’
me
etin
g to
be
he
ld o
n M
arch
16, 2
00
1. Inclu
din
g th
is pro
po
sed
fina
l divid
en
d, th
e d
ivide
nd
pa
you
t ratio
is ap
pro
xima
tely 8
.46
% a
nd
13.4
8%
at D
ece
mb
er 3
1, 20
00
an
d 19
99
, resp
ective
ly.
17. Treasury Stock
Du
ring
the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
, the
Co
mp
an
y ha
s acq
uire
d 3
,00
0,0
00
sha
res o
f its ow
n co
mm
on
stock
an
d 4
00
,00
0 sh
are
s of its
ow
n n
on
-votin
g p
refe
rred
stock
. As o
f De
cem
be
r 31, 2
00
0, th
e C
om
pa
ny h
old
s 6,4
49
,62
5 sh
are
s of its o
wn
com
mo
n sto
ck a
nd
1,26
9,6
93
sha
res o
f its ow
n p
refe
rred
stock
. Th
is trea
sury sto
ck is re
cord
ed
as a
cap
ital a
dju
stme
nt .
18. S
tock Option P
lan
Th
e C
om
pa
ny h
as a
stock
op
tion
pla
n th
at p
rovid
es fo
r gra
ntin
g sto
ck p
urch
ase
op
tion
s to e
mp
loye
es o
r dire
ctors w
ho
ha
ve co
ntrib
ute
d o
r
are
exp
ecte
d to
con
tribu
te to
the
ma
na
ge
me
nt a
nd
tech
no
log
y inn
ova
tion
of th
e C
om
pa
ny.
Th
e C
om
pa
ny g
ran
ted
such
op
tion
s on
Ma
rch 16
, 20
00
, wh
ich ca
n b
e e
xercise
d fo
r up
to 1,5
00
,00
0 co
mm
on
sha
res (se
e N
ote
1) at a
n
exe
rcise p
rice o
f 2
72
,70
0 p
er sh
are
. Th
is price
will b
e a
dju
sted
in th
e e
ven
t of a
ne
w sh
are
offe
ring
, stock
divid
en
d, sto
ck sp
lit or sto
ck
me
rge
r. Th
ese
op
tion
s, with
a se
rvice p
erio
d o
f two
yea
rs from
the
da
te o
f the
gra
nt, ca
n b
e e
xercise
d a
fter th
ree
an
d w
ithin
seve
n ye
ars
from
the
da
te o
f the
gra
nt.
Th
e C
om
pa
ny re
cog
nize
d th
e co
mp
en
satio
n co
st for th
ese
op
tion
s usin
g th
e fa
ir valu
e m
eth
od
ba
sed
on
an
exp
ecte
d sto
ck p
rice vo
latility o
f
69
.48
%, e
stima
ted
risk-fre
e in
tere
st rate
s of 9
.08
%, e
xpe
cted
exe
rcise te
rm o
f fou
r yea
rs an
d e
xpe
cted
divid
en
d yie
ld o
f 0.3
9%
. Th
e co
st of
the
stock
op
tion
pla
n w
as
93
,74
6 m
illion
for th
e ye
ar e
nd
ed
De
cem
be
r 31, 2
00
0, a
nd
will b
e
141,4
24
millio
n fro
m th
e fo
llow
ing
yea
r.
19. Income Tax Expense
Th
e sta
tuto
ry inco
me
tax ra
te a
pp
licab
le to
the
Co
mp
an
y, inclu
din
g re
side
nt su
rtax, is a
pp
roxim
ate
ly 30
.8%
. Inco
me
tax e
xpe
nse
for th
e
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
con
sists of th
e fo
llow
ing
:
Th
e fo
llow
ing
tab
le re
con
ciles th
e e
xpe
cted
am
ou
nt o
f inco
me
tax e
xpe
nse
ba
sed
on
statu
tory ra
tes to
the
actu
al a
mo
un
t of ta
xes re
cord
ed
by th
e C
om
pa
ny:
72
Inco
me
Ta
xes
Cu
rren
t inco
me
taxe
s
De
ferre
d in
com
e ta
xes
To
tal
1,186,607,415
899,310,939
2,085,918,354
658,526,912
199,038,851
857,565,763
Th
ou
san
ds o
f Wo
n
20
00
199
9
Ta
x Ra
te C
alcu
latio
n
Inco
me
be
fore
taxe
s
Sta
tuto
ry tax ra
te
Exp
ecte
d ta
xes a
t statu
tory ra
te
Ta
x cred
it
Oth
ers, n
et
Actu
al ta
xes
Effe
ctive ta
x rate
8,100,448,546
30.8%
2,494,938,152
(455,027,917)
46,008,119
2,085,918,354
25.8%
4,027,968,337
30.8%
1,240,614,248
(403,263,139)
20,214,654
857,565,763
21.3%
Th
ou
san
ds o
f Wo
n
20
00
199
9
Co
mp
on
en
ts of d
efe
rred
taxe
s as o
f De
cem
be
r 31, 2
00
0 a
re a
s follo
ws:
Th
e C
om
pa
ny p
erio
dica
lly asse
sses its a
bility to
reco
ver d
efe
rred
tax a
ssets. In
the
eve
nt o
f sign
ifican
t un
certa
inty re
ga
rdin
g th
e C
om
pa
ny’s
ultim
ate
ab
ility to re
cove
r such
asse
ts, a va
lua
tion
allo
wa
nce
is reco
rde
d to
red
uce
the
asse
t to its e
stima
ted
ne
t rea
lizab
le va
lue
.
Th
e C
om
pa
ny h
as n
ot re
cog
nize
d th
e in
com
e ta
x effe
ct of a
tem
po
rary d
iffere
nce
of
415
,09
0 m
illion
resu
lting
from
the
reva
lua
tion
of la
nd
it ha
s no
imm
ed
iate
pla
ns to
disp
ose
of. In
ad
ditio
n, a
cha
ng
e in
acco
un
ting
po
licy in th
e cu
rren
t yea
r (see
No
te 2
) resu
lted
in a
cum
ula
tive
incre
ase
in d
efe
rred
inco
me
tax o
f 3
,00
9 m
illion
tha
t wa
s ad
juste
d to
op
en
ing
reta
ine
d e
arn
ing
s.
20. Earnings Per S
hare
Ea
rnin
gs p
er sh
are
an
d d
ilute
d e
arn
ing
s pe
r sha
re a
re ca
lcula
ted
as fo
llow
s:
73
De
ferre
d T
ax A
sset C
alcu
latio
n
De
ferre
d ta
x asse
ts:
Loss o
n va
lua
tion
of in
vestm
en
ts usin
g th
e e
qu
ity me
tho
d
De
ferre
d fo
reig
n e
xcha
ng
e lo
sses
Inve
stme
nt sto
ck re
du
ction
losse
s
De
pre
ciatio
n
Oth
er
Ta
x cred
its
To
tal d
efe
rred
tax a
ssets
De
ferre
d ta
x liab
ilities:
Sp
ecia
l rese
rves a
pp
rop
riate
d fo
r tax p
urp
ose
s
Ca
pita
lized
inte
rest e
xpe
nse
Accru
ed
inco
me
Ga
in o
n va
lua
tion
of in
vestm
en
ts usin
g th
e e
qu
ity me
tho
d
Oth
er
To
tal d
efe
rred
tax lia
bilitie
s
Ne
t de
ferre
d ta
x asse
ts
Be
gin
nin
g
Ba
lan
ce
320,422,447
236,486,776
85,782,593
311,472,320
89,287,880
240,187,881
1,283,639,897
160,301,578
34,669,575
4,031,119–
4,110,702
203,112,974
1,080,526,923
Incre
ase
(De
crea
se)
(320,422,447)
(104,366,080)
(80,546,470)
(165,310,076)
17,817,975
(240,187,881)
(893,014,979)
(49,322,141)
20,141,152
4,948,678
35,918,457
(2,380,699)
9,305,447
(902,320,426)
En
din
g
Ba
lan
ce–
132,120,696
5,236,123
146,162,244
107,105,855–
390,624,918
110,979,437
54,810,727
8,979,797
35,918,457
1,730,003
212,418,421
178,206,497
EP
S C
alcu
latio
n
Ne
t inco
me
Ad
justm
en
ts:
Divid
en
ds fo
r pre
ferre
d sto
ck
Un
de
clare
d p
articip
atin
g p
refe
rred
stock
divid
en
d
Ne
t inco
me
ava
ilab
le fo
r com
mo
n sto
ck
We
igh
ted
ave
rag
e n
um
be
r of sh
are
s of co
mm
on
stock
Ea
rnin
gs p
er sh
are
in K
ore
an
Wo
n
6,014,530,192
(69,202,389)
(738,754,987)
5,206,572,816
148,735,383
35,006
Th
ou
san
ds o
f Wo
n
Th
ou
san
ds o
f Wo
n
21. Related P
arty Transactions
Sig
nifica
nt tra
nsa
ction
s with
rela
ted
pa
rties fo
r the
yea
rs en
de
d D
ece
mb
er 3
1, 20
00
an
d th
e 19
99
an
d th
e re
late
d re
ceiva
ble
s an
d p
aya
ble
s
at D
ece
mb
er 3
1, 20
00
an
d 19
99
are
as fo
llow
s:
Du
ring
20
00
an
d 19
99
Sa
ms
un
g C
orp
ora
tion
exp
orte
d
21,5
59
,95
1 millio
n a
nd
15
,78
2,2
47
millio
n w
orth
of g
oo
ds
an
d im
po
rted
3,7
27
,413
millio
n a
nd
4
,516
,84
9 m
illion
wo
rth o
f go
od
s on
be
ha
lf of th
e C
om
pa
ny.
74
28,793,503
130,501,116
56,334,467
91,541,195
37,108,881
3,609,217
2,542,910
12,978,039
961,821
8,526,218
1,212,420
16,818,904
122,275,922
196,412,048
544,364,061
73,615,997
$13,533,592
1,327,596,719
$13,533,592
40,403,924
77,470,578
91,092,651
89,062,680
113,570,242
15,357,953
930,863
19,843,835
1,393,555
4,326,609
863,025
25,682,263
105,369,817- -
46,303,308
$10,678,976
631,671,303
$10,678,976
1,157,468,843
1,550,459,715
814,221,910
298,140,093
782,325,532
187,041,979
124,882,862
121,463,67430
30,108,821
151,182,121
111,146,302
3,157,127
172,262,778
2,531,563
1,905,131
577,595,366
$6,119,476
6,085,893,817
$6,119,476
625,112,597
987,862,496
724,502,937
272,211,537
667,459,514
162,368,633
94,919,970
95,803,645
44,292,171
119,891,015
101,364,743
2,695,194
124,600,307- -
318,196,254
$4,141,759
4,341,281,013
$4,141,759
72,366,272
13,165,784
6,747,530
3,716,739
12,665,328
994,946
5,500
620,024
5,267,064
88,034
115,380,900
52,651,475
41,288,409
1,337,916
39,633,044
583,236,542
$162,185
949,165,507
$162,185
72,017,084
10,238,439
8,910,815
29,833,411
21,741,911
1,468,672
37,927
6,208,306
5,337,569
97,653
112,901,005
158,751,364
31,008,173--
86,429,814
$156,532
544,982,143
$156,532
419,022,525
119,351,143
78,607,286
46,475,852
171,160,367
35,672,995
102,867,427
25,480,211
9,049,606
45,899,927
13,422,658
5,210,222
40,862,672
711,234
37,084,362
119,485,693
$182,903
1,270,364,180
$182,903
198,836,293
176,395,225
130,437,215
28,926,439
170,879,386
10,543,300
93,004,770
21,518,655
14,903,224
43,546,741
20,037,500
7,086,126
31,673,599--
55,263,314
$582,616
1,003,051,787
$582,616
Co
mp
an
y
Sa
msu
ng
Co
rpo
ratio
n
Sa
msu
ng
SD
I
Sa
msu
ng
Ele
ctro-M
ech
an
ics
Sa
msu
ng
SD
S
Sa
msu
ng
Kw
an
gju
Ele
ctron
ics
Sa
msu
ng
Te
chw
in
Ch
eil C
om
mu
nica
tion
s
Se
ou
l Co
mm
tech
Sa
msu
ng
He
avy In
du
stries
No
vita
Sa
msu
ng
Eve
rlan
d
Sa
msu
ng
Life In
sura
nce
Sa
msu
ng
Ele
ctron
ics Se
rvice
Sa
msu
ng
Th
ale
s
Ko
rea
Ele
ctron
ics &
Info
rma
tion
Distrib
utio
n
Oth
er lo
cal su
bsid
iarie
s
an
d a
ffiliate
d co
mp
an
ies
Fore
ign
sub
sidia
ries a
nd
affilia
ted
com
pa
nie
s
To
tal W
on
curre
ncy
To
tal fo
reig
n cu
rren
cy
Sa
les
20
00
199
9
Pu
rcha
ses
20
00
199
9
Re
ceiva
ble
s
20
00
199
9
Pa
yab
les
20
00
199
9
Th
ou
san
ds o
f Wo
n, T
ho
usa
nd
s of U
.S. D
olla
rs
Dilu
ted
EP
S C
alcu
latio
n
Ne
t inco
me
ava
ilab
le fo
r com
mo
n sto
ck
Ad
justm
en
t:
Inte
rest e
xpe
nse
on
con
vertib
le b
on
ds
Ne
t inco
me
ava
ilab
le fo
r com
mo
n sto
ck &
com
mo
n e
qu
ivale
nt sh
are
We
igh
ted
ave
rag
e n
um
be
r of co
mm
on
stock
& co
mm
on
eq
uiva
len
t sha
res
Dilu
ted
ea
rnin
gs p
er sh
are
in K
ore
an
Wo
n
5,206,572,816
18,855,974
5,225,428,790
151,931,513
34,393
Th
ou
san
ds o
f Wo
n
22. Research and D
evelopment Costs
Re
sea
rch a
nd
de
velo
pm
en
t costs in
curre
d fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
com
prise
the
follo
win
g:
23. Foreign Currency Translation
At D
ece
mb
er 3
1, 20
00
an
d 19
99
, asse
ts an
d lia
bilitie
s de
no
min
ate
d in
fore
ign
curre
ncie
s an
d fo
reig
n e
xcha
ng
e g
ain
s (losse
s) are
as fo
llow
s:7
5
R&
D C
osts
Re
sea
rch e
xpe
nse
s
Ord
ina
ry de
velo
pm
en
t exp
en
ses
To
tal
946,629,028
1,072,726,375
2,019,355,403
806,465,213
785,874,334
1,592,339,547
Th
ou
san
ds o
f Wo
n
20
00
199
9
Acco
un
t
Fore
ign
curre
ncy d
ep
osits
Tra
de
acco
un
ts an
d
no
tes re
ceiva
ble
Oth
er a
ccou
nts a
nd
no
tes re
ceiva
ble
Gu
ara
nte
e d
ep
osits
Co
ntin
ue
d;
Tra
nsla
tion
Ga
in
6,478,630–––
6,478,630
29,636–
17,384
805
1,979
67,982
4,488,983
1,780
4,608,549–
151,392
145,790
6,371,655
13,829
6,682,666
118,798
41,961
3,138
163,897
Ko
rea
n W
on
(tran
slate
d)
145,812,900
144,717
318,723
47,461
146,323,801
1,461,811
41,982
2,441,005
4,580,424
26,928
1,767,271
279,857,711
5,662,639
295,839,771
10,910,778
1,318,342–
47,220,183
277,211
59,726,514–
185,235
82,299
267,534
Tra
nsla
tion
Loss–––––
4,587–
26,022––
107
15,116,562
845
15,148,123––
79,331
240,082–
319,413––
281
281
Ko
rea
n W
on
(tran
slate
d)
328,769,533
4,574,615
392,6886
333,736,842
2,478,096
651,208
4,861,825
2,539,155
838,233
7,410,415
259,015,161
880,654
278,674,747
3,670,447
2,082,855
4,283,766
142,051,380
1,063,091
153,151,539
145,051
178,407
30,040
353,498
Fore
ign
Cu
rren
cies
USD
260,990,341.23
JPY
415,300,244.00
MYR
1,184,580.36
Other
DEM
4,082,260.80
ESP91,261,878.00
EUR
4,094,961.90
GB
P1,349,996.80
ITL1,366,980,767.00
JPY
672,744,496.00
USD
205,616,544.68
Other
EUR
3,091,501.51
ITL3,396,697,478.00
JPY
388,895,890.00
USD
112,766,039.62
Other
IRR
190,856,450.00
USD
141,626.72
Other
Th
ou
san
ds o
f Wo
n
20
00
199
9
23. Foreign Currency Translation, Continued
76
Acco
un
t
Oth
er a
ssets
Tra
de
acco
un
ts an
d
no
tes p
aya
ble
Sh
ort-te
rm b
orro
win
gs
Oth
er a
ccou
nts p
aya
ble
Accru
ed
exp
en
ses
Co
ntin
ue
d;
Tra
nsla
tion
Ga
in
13,652
18,925–
205,722
19,300
8,770–
6,620
1,648,062
60,746
1,981,797–––
6,614
10,497–
216,751–
233,862–
210
43,525––
117–––––
43,852––––
Ko
rea
n W
on
(tran
slate
d)
48,726
538,095
36,413–
3,954––
62,066
5,068,007
492,447
6,249,708–
5,368,382–
691,898
138,965,381
255,006
280,536,231
140,616
425,957,514
44,465
3,998,912
461,168,949
115,520
233,160,149
24,359,216
1,663,782
24,292,366
721,230
625,164
4,642,158
754,747,446
2,965,923
3,127,050
856,646
3,834,139
Tra
nsla
tion
Loss––
6,000–
1,663–
4,393––
27,753
39,809
11,784
68,208
266,779
49,658
4,596,760
98,332
16,546,478
5,176
21,643,175–
23,969
3,209,743
115,586
1,326,815
1,073,515
10,029
13,230
2,403
27,493
1,082
5,803,865
83,568
113,898
25,033
53,743
Ko
rea
n W
on
(tran
slate
d)
59,014
201,178
50,454
8,684,500
595,447
74,662
51,192
78,045
55,317,612
1,237,686
66,349,790
214,074
1,046,315
3,199,168
697,653
156,212,281
1,400,776
397,663,284
203,959
560,637,510–
1,185,315
99,548,610
2,857,628
92,152,161
12,376,188
368,234
324,762
162,728
639,820
455,226
210,070,672
5,248,275
6,941,893
1,819,178
3,044,465
Fore
ign
Cu
rren
cies
ATS
683,987.39
CN
Y1,321,890.96
CO
P98,929,825.82
EUR
7,314,679.65
INR
22,029,097.30
MYR
225,224.48
SAR
152,425.00
TWD
2,048,975.00
USD
43,913,322.10
Other
BEF
7,274,000.00
DEM
1,723,633.82
EUR
2,694,557.92
FRF
3,854,435.40
JPY
14,181,520,180.00
NLG
2,600,000.00
USD
315,680,942.70
Other
USD
GB
P630,198.46
USD
79,025,648.57
EUR
2,406,890.17
JPY
8,365,909,054.00
AU
D17,591,306.82
DEM
606,606.45
NLG
602,795.44
FRF
899,050.00
ITL1,043,411,328.00
Other
AU
D7,459,809.88
DEM
11,435,644.18
ESP254,943,961.00
FRF
16,820,246.50
Th
ou
san
ds o
f Wo
n
20
00
199
9
23. Foreign Currency Translation, Continued
24. Accounts R
elating to Gross A
dded Value
Th
e a
ccou
nts re
qu
ired
for th
e ca
lcula
tion
of g
ross a
dd
ed
valu
e fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
are
as fo
llow
s:
77
Acco
un
t
Wa
ge
s an
d sa
larie
s
Pro
vision
for se
vera
nce
be
ne
fits
We
lfare
exp
en
ses
Re
nta
l exp
en
ses
De
pre
ciatio
n e
xpe
nse
s
Ta
xes a
nd
du
es
To
tal
834,611,555
77,271,611
139,507,030
98,510,754
2,229,728,643
39,423,541
3,419,053,134
Th
ou
san
ds o
f Wo
n
To
tals
20
00
199
9
600,713,891
53,661,311
107,439,899
70,316,803
2,272,587,224
29,944,096
3,134,663,224
369,566,573
35,441,860
54,162,467
14,666,185
112,347,734
56,790,194
642,975,013
248,352,155
36,742,659
35,691,475
11,503,433
119,256,530
65,584,747
517,130,999
1,204,178,128
112,713,471
193,669,497
113,176,939
2,342,076,377
96,213,735
4,062,028,147
849,066,046
90,403,970
143,131,374
81,820,236
2,391,843,754
95,528,843
3,651,794,223
Se
lling
, Ge
ne
ral a
nd
Ad
min
istrative
Exp
en
ses
20
00
199
9
Ma
nu
factu
ring
Co
st
20
00
199
9
Acco
un
t
Accru
ed
exp
en
ses
Ad
van
ces fro
m cu
stom
ers
Lon
g-te
rm o
the
r acco
un
ts pa
yab
le,
inclu
din
g cu
rren
t ma
turitie
s
Fore
ign
curre
ncy n
ote
s
an
d b
on
ds, in
clud
ing
curre
nt m
atu
rities
Lon
g-te
rm d
eb
t, inclu
din
g
curre
nt m
atu
rities
Tra
nsla
tion
Ga
in–––––
20,929–
20,929––
7,326,412
101,038
7,427,450–
3,005,328–
3,005,328
3,474,720–
3,474,720
34,121,680
Ko
rea
n W
on
(tran
slate
d)
7,973,785
574,917
4,762,907
3,133,840
772,647
2,291,291
257,403,820
1,548,181
289,245,146–
157,771,148–
157,771,148
352,962,000
165,920,136
1,266,643,757
1,785,525,893
191,834,640
1,395,446,144
1,587,280,784
Tra
nsla
tion
Loss
54,908
21,495
33,897
735,444
92,814
8,713
16,461,750
21,743
17,707,006
422,404
27,374,670
2,096,550
29,471,220
5,631,000–
46,726,983
52,357,983–
94,925,046
94,925,046
237,838,325
Ko
rea
n W
on
(tran
slate
d)
8,410,791
2,604,824
4,327,893
18,243,103
2,213,500
3,184,221
332,646,460
1,707,739
390,392,342
4,948,179
335,488,920
10,170,465
345,659,385
182,112,000
162,914,808
1,061,405,607
1,406,432,415
188,359,920
1,046,168,677
1,234,528,597
Fore
ign
Cu
rren
cies
GB
P4,471,779.31
HK
D16,127,945.39
ITL7,057,881,785.00
JPY
1,656,175,340.00
NLG
4,108,509.05
SGD
4,381,875.66
USD
264,068,000.03
Other
USD
3,928,061.09
USD
266,324,459.00
EUR
8,566,261.00
DEM
300,000,000.00
JPY
14,790,000,000.00
USD
885,890,000.00
JPY
17,100,000,000.00
USD
830,490,336.87
Th
ou
san
ds o
f Wo
n
20
00
199
9
25. Environmental S
tandards and Policies
Bu
ildin
g o
n its p
hilo
sop
hy o
f “Gre
en
Ma
na
ge
me
nt,” th
e C
om
pa
ny co
ntin
ue
s to p
rom
ote
an
ab
un
da
nt life
as w
ell a
s the
pro
tectio
n o
f the
glo
ba
l en
viron
me
nt th
rou
gh
corp
ora
te a
ctivities th
at b
en
efit b
oth
pe
op
le a
nd
na
ture
. Th
e C
om
pa
ny is co
mm
itted
to e
nviro
nm
en
t pro
tectio
n
an
d p
rese
rvatio
n in
all a
spe
cts of its co
rpo
rate
activitie
s, inclu
din
g p
rod
uct d
eve
lop
me
nt, p
rod
uctio
n, m
ark
etin
g a
nd
disp
osa
l.
Th
e C
om
pa
ny h
as b
ee
n re
cog
nize
d a
s on
e o
f the
mo
st en
viron
me
nt-frie
nd
ly com
pa
nie
s an
d h
as a
cqu
ired
ISO
140
01 ce
rtificatio
n fo
r its
en
viron
me
nta
l ma
na
ge
me
nt syste
m. In
ad
ditio
n to
en
ga
gin
g in
de
velo
pm
en
t an
d re
sea
rch a
ctivities fo
r en
viron
me
nt-frie
nd
ly pro
du
cts, the
Co
mp
an
y o
pe
rate
s wa
ste tre
atm
en
t facilitie
s for its o
wn
use
an
d a
recy
cling
cen
ter to
colle
ct an
d re
cycle
wa
ste e
lectro
nic g
oo
ds. T
he
Co
mp
an
y active
ly pa
rticipa
tes in
com
mu
nity e
nviro
nm
en
tal p
rote
ction
pro
gra
ms. In
ad
ditio
n, th
e C
om
pa
ny su
pp
orts co
mm
un
ity pro
gra
ms
to cle
an
, pro
tect a
nd
pre
serve
the
na
tura
l en
viron
me
nt, in
clud
ing
mo
un
tain
s, strea
ms a
nd
pa
rks.
26. Employee B
enefits and Public D
onations
A) D
eta
ils of th
e C
om
pa
ny’s e
mp
loye
e b
en
efits a
re liste
d b
elo
w.
B) D
eta
ils of p
ub
lic do
na
tion
s ma
de
by th
e C
om
pa
ny d
urin
g th
e ye
ars e
nd
ed
De
cem
be
r 31, 2
00
0 a
nd
199
9 a
re a
s follo
ws:
27. Cultivation of Professional H
uman R
esources and Professional Training
Th
e C
om
pa
ny o
pe
rate
s a le
ad
ersh
ip d
eve
lop
me
nt ce
nte
r, a h
igh
tech
no
log
y institu
te a
nd
a g
lob
al m
ark
etin
g in
stitute
. Th
e C
om
pa
ny h
as
cultiva
ted
do
me
stic an
d o
verse
as e
xpe
rts in e
ach
are
a o
f bu
sine
ss thro
ug
h th
e o
pe
ratio
n o
f the
se p
rofe
ssion
al in
stitute
s an
d o
ve
rsea
s
assig
nm
en
ts. Th
e C
om
pa
ny a
lso p
rovid
es e
mp
loye
es w
ith a
ccess to
hig
he
r ed
uca
tion
pro
gra
ms a
t do
me
stic an
d o
verse
as u
nive
rsities,
aca
de
mic re
sea
rch p
rog
ram
s, the
in-h
ou
se C
olle
ge
of T
ech
no
log
y an
d th
e 2
1st Ce
ntu
ry Aca
de
my p
rog
ram
.
78
Su
pp
ort o
f em
plo
yee
we
alth
accu
mu
latio
n
Living
sup
po
rt
Su
pp
ort fo
r com
mu
ting
, me
als, e
tc.
Me
dica
l sup
po
rt
Su
pp
ort fo
r leisu
re a
ctivities
• A
llots a
po
rtion
of n
ew
ly issue
d sh
are
s to th
e e
mp
loye
e sto
ck o
wn
ersh
ip a
ssocia
tion
.
• O
pe
rate
s a m
utu
al sa
ving
s sche
me
to a
ssist em
plo
yee
s in u
rge
nt n
ee
d o
f fun
ds.
• In
divid
ua
l pe
nsio
n p
lan
s to su
pp
ort a
com
forta
ble
retire
me
nt.
• P
rovid
es h
ou
sing
for e
mp
loye
es a
ssign
ed
to fa
ctorie
s or p
rovin
cial o
ffice jo
bs.
• P
rovid
es a
cad
em
ic tuitio
n su
pp
ort.
• P
rovid
es co
mm
ute
r bu
ses fo
r em
plo
yee
s.
• O
pe
rate
s in-h
ou
se re
stau
ran
ts an
d p
rovid
es w
ork
cloth
ing
.
• S
up
po
rt for co
ng
ratu
latio
ns a
nd
con
do
len
ces.
• Fin
an
ces a
nn
ua
l me
dica
l che
ck-u
ps fo
r em
plo
yee
s.
• P
rovid
es a
ssistan
ce fo
r em
plo
yee
me
dica
l exp
en
ses.
• O
pe
rate
s con
do
min
ium
an
d re
sort fa
cilities fo
r em
plo
yee
s.
• P
rovid
es p
aid
sum
me
r or w
inte
r vaca
tion
s an
d h
alf-d
ay h
olid
ays.
Be
ne
fitsA
rea
Do
na
tion
s of la
nd
for lo
cal ro
ad
s
Co
ntrib
utio
ns to
the
em
plo
yee
we
lfare
fun
d
Do
na
tion
s to su
pp
ort u
nive
rsities a
nd
he
lp th
e le
ss fortu
na
te
–
80,000
90,533
170,533
54,182
54,000
30,874
139,056
Millio
ns o
f Wo
n
20
00
199
9
Do
na
tion
s
28. S
egment Inform
ation
A su
mm
ary o
f the
Co
mp
an
y’s op
era
tion
s by b
usin
ess se
gm
en
t an
d g
eo
gra
ph
ic are
a a
s of D
ece
mb
er 3
1, 20
00
an
d fo
r the
yea
r the
n e
nd
ed
is
as fo
llow
s (in m
illion
s of W
on
):
29. Discontinued O
perations
On
Jan
ua
ry 11, 20
00
, the
Co
mp
an
y esta
blish
ed
Sa
msu
ng
Th
ale
s Co
., Ltd. (fo
rme
rly Sa
msu
ng
Th
om
son
-CS
F Co
., Ltd.), a
50
:50
join
t ven
ture
with
Th
om
son
-CS
F Inte
rna
tion
al w
ith ca
pita
l stock
of
27
0 b
illion
. Pu
rsua
nt to
the
join
t ven
ture
ag
ree
me
nt, th
e C
om
pa
ny so
ld its d
efe
nse
ele
ctron
ics divisio
n to
the
join
t ven
ture
on
Feb
rua
ry 28
, 20
00
. Co
mp
on
en
ts of a
mo
un
ts refle
cted
in th
e in
com
e sta
tem
en
t an
d b
ala
nce
she
et
are
as fo
llow
s:
Disco
ntin
ue
d o
pe
ratio
n in
form
atio
n fo
r the
yea
r en
de
d D
ece
mb
er 3
1, 20
00
an
d 19
99
is as fo
llow
s:
30. Reclassification of 1999 A
mounts
Ce
rtain
am
ou
nts in
the
199
9 fin
an
cial sta
tem
en
ts ha
ve b
ee
n re
classifie
d to
con
form
to th
e 2
00
0 p
rese
nta
tion
. Th
ese
recla
ssificatio
ns h
ad
no
effe
ct on
pre
viou
sly rep
orte
d n
et in
com
e o
r sha
reh
old
ers’ e
qu
ity.
79
Fina
ncia
l Da
ta b
y Bu
sine
ss Se
gm
en
t
1.S
ale
s
Sa
les to
un
affilia
ted
custo
me
rs
Inte
rseg
me
nt sa
les
2. O
pe
ratin
g p
rofit (lo
ss)
3. T
an
gib
le a
nd
inta
ng
ible
asse
ts
4. D
ep
recia
tion
Se
mico
nd
ucto
rs
12,953,399
1,081,049
14,034,448
6,057,705
10,016,939
2,308,874
Oth
er A
rea
s
1,625,331
217,619
1,842,950
(242,854)
128,100
64,450
Info
rma
tion
&
Co
mm
un
icatio
ns
7,610,397
22,160
7,632,557
908,401
1,598,400
188,767
Ho
me
Ap
plia
nce
s
2,745,049
18,202
2,763,251
187,309
412,787
36,786
Dig
ital M
ed
ia
9,349,576
50,154
9,399,730
524,594
453,619
67,352
Fina
ncia
l Da
ta b
y Ge
og
rap
hic A
rea
1. Sa
les
2. T
an
gib
le a
nd
inta
ng
ible
asse
ts
3. D
ep
recia
tion
Am
erica
9,916,847
4,820,126
1,078,890
Africa
88,827
10,492
891
Eu
rop
e
5,834,774
2,311,339
501,984
Asia
7,539,921
3,580,267
787,489
Do
me
stic
10,903,384
1,867,621
296,975
Ga
in o
n D
ispo
sal o
f Disco
ntin
ue
d O
pe
ratio
n
Asse
ts
Liab
ilities
Ne
t asse
ts of d
iscon
tinu
ed
op
era
tion
s
Pro
cee
ds fro
m d
ispo
sal
Ga
in o
n d
ispo
sal
Millio
ns o
f Wo
n
122,991
64,512
58,479
211,758
153,279
Disco
ntin
ue
d O
pe
ratio
n In
form
atio
n
Sa
les
Op
era
ting
loss
Ta
ng
ible
asse
ts
2,645
(698)
13,412
166,731
(4,852)
13,580
Millio
ns o
f Wo
n
20
00
199
9
Five-Year Financial Sum
mary
As o
f De
cem
be
r 31, 19
96
~2
00
0
Sa
les
Do
me
stic
Exp
ort
Co
st of sa
les
Gro
ss pro
fit
Se
lling
, ge
ne
ral a
nd
ad
min
istrative
exp
en
ses
Op
era
ting
pro
fit
No
n-o
pe
ratin
g in
com
e
Inte
rest a
nd
divid
en
d in
com
e
Ga
in o
n fo
reig
n cu
rren
cy tran
sactio
ns
Ga
in o
n fo
reig
n cu
rren
cy tran
slatio
n
Ga
in o
n va
lua
tion
of in
vestm
en
ts
usin
g th
e e
qu
ity me
tho
d
Oth
er
No
n-o
pe
ratin
g e
xpe
nse
s
Inte
rest e
xpe
nse
s
Am
ortiza
tion
of d
efe
rred
cha
rge
s
Loss o
n fo
reig
n cu
rren
cy tran
sactio
ns
Loss o
n fo
reig
n cu
rren
cy tran
slatio
n
Oth
er
Ord
ina
ry pro
fit
Extra
ord
ina
ry inco
me
Extra
ord
ina
ry loss
Ne
t inco
me
be
fore
inco
me
taxe
s
Inco
me
tax e
xpe
nse
Ne
t inco
me
Ea
rnin
gs p
er sh
are
(in K
ore
an
Wo
n a
nd
U.S
. Do
llars)
Th
ou
san
ds o
f U.S
.D
olla
rs
$8,660,353
$7,029,885$5,380,693
$5,663,406$7,206,351
18,570,58613,714,980
11,259,0567,386,318
11,602,350
$27,230,939$20,744,865
$16,639,749$13,049,724
$18,808,701
17,468,92614,027,936
11,578,9148,976,018
14,126,196
$9,762,013$6,716,929
$5,060,835$4,073,706
$4,682,505
3,856,4103,157,358
2,492,5182,055,176
2,968,229
$5,905,603$3,559,571
$2,568,317$2,018,530
$1,714,276
$124,247$180,890
$279,383$120,977
$244,520
237,546212,448
863,2311,321,352
–
27,102207,638
––
–
692,079236,888
515,843470,591
371,563290,965
333,951
$1,596,817$1,308,455
$1,514,177$1,733,294
$578,471
$272,730$572,835
$924,894$536,428
$480,852
--
1,559,2671,117,517
912,283
221,643222,788
857,7321,478,708
–
188,91184,666
––
–
507,131576,914
375,354508,878
634,647
$1,190,415$1,457,203
$3,727,247$3,641,531
$2,027,782
$6,312,005$3,410,823
$365,247$110,293
$264,965
122,029–
235,06846
12,647
–211,484
259,920 1,773
30,546
$6,434,034$3,199,339
$340,395$108,566
$247,066
1,656,806681,148
80,89521,283
52,569
$4,777,228$2,518,191
$259,500$87,283
$194,497
$28$15
$2$1
$2
80
20
00
199
919
98
199
719
96
81
Th
ou
san
ds o
f Ko
rea
n W
on
10,903,383,9768,850,624,784
6,494,496,6058,013,718,934
6,082,160,483
23,380,368,30317,267,160,967
13,589,679,92210,451,640,507
9,792,383,336
34,283,752,27926,117,785,751
20,084,176,52718,465,359,441
15,874,543,819
21,993,377,77017,661,171,944
13,975,748,86812,701,065,224
11,922,509,430
12,290,374,5098,456,613,807
6,108,427,6595,764,294,217
3,952,034,389
4,855,219,8493,975,113,690
3,008,468,8682,908,073,790
2,505,185,220
7,435,154,6604,481,500,117
3,099,958,7912,856,220,427
1,446,849,169
156,427,345227,740,962
337,215,452171,182,036
206,374,901
299,070,108267,472,334
1,041,919,1771,869,713,309
–
34,121,680261,416,440
––
–
871,326,886298,242,218
––
–
649,446,121592,472,848
448,477,112411,715,036
281,854,160
2,010,392,1401,647,344,802
1,827,611,7412,452,610,381
488,229,061
343,367,140721,198,940
1,116,346,994759,045,307
405,838,831
––
1,882,034,8791,581,287,365
769,966,975
279,048,744280,490,610
1,035,283,2302,092,372,147
–
237,838,325106,594,502
––
–
638,478,440726,334,345
453,052,701720,061,983
535,642,340
1,498,732,6491,834,618,397
4,486,717,8045,152,766,802
1,711,488,146
7,946,814,1514,294,226,522
440,852,728156,064,006
223,630,084
153,634,395–
283,726,60365,610
10,674,208
–266,258,185
313,723,0102,508,902
25,780,500
8,100,448,5464,027,968,337
410,856,321153,620,714
208,523,792
2,085,918,354857,565,763
97,640,28330,115,805
44,368,311
6,014,530,1923,170,402,574
313,216,038123,504,909
164,155,481
35,00619,214
2,8321,232
1,784
20
00
199
919
98
199
719
96
11
Yoon-Woo Lee
• P
resid
en
t, Se
mico
nd
ucto
r Bu
sine
ss Gro
up
,
Sa
msu
ng
Ele
ctron
ics [199
5-p
rese
nt]
• E
xecu
tive V
P, S
em
icon
du
ctor B
usin
ess G
rou
p,
Sa
msu
ng
Ele
ctron
ics [199
3-19
95
]
• E
xecu
tive V
P, S
em
icon
du
ctor B
usin
ess G
rou
p,
Sa
msu
ng
Ele
ctron
ics [199
2-19
93
]
• M
an
ag
ing
dire
ctor, K
ihe
un
g P
lan
t, Sa
msu
ng
Se
mico
nd
ucto
r & T
ele
com
mu
nica
tion
[198
7-19
92
]
Ove
r the
yea
rs, Sa
msu
ng
Ele
ctron
ics’ Bo
ard
of D
irecto
rs ha
s pla
yed
a cru
cial le
ad
ersh
ip ro
le in
ma
ximizin
g co
rpo
rate
valu
e. Fo
un
de
d o
n th
e
valu
es o
f tran
spa
ren
cy an
d re
spo
nsib
ility, the
de
cision
-ma
kin
g a
nd
corp
ora
te g
ove
rna
nce
fram
ew
ork
pro
vide
d b
y the
Bo
ard
con
tinu
es to
pro
vide
a fe
rtile e
nviro
nm
en
t for th
e cre
ative
, pro
gre
ssive e
ntre
pre
ne
uria
l spirit th
at h
as h
elp
ed
the
com
pa
ny e
me
rge
as a
n in
tern
atio
na
l
ele
ctron
ics lea
de
r.
Th
e B
oa
rd is cu
rren
tly com
po
sed
of th
ree
stan
din
g co
mm
ittee
s: the
Ma
na
ge
me
nt C
om
mitte
e, th
e A
ud
it Co
mm
ittee
, an
d th
e O
utsid
e
Dire
ctor R
eco
mm
en
da
tion
Co
mm
ittee
. Th
e M
an
ag
em
en
t Co
mm
ittee
is in ch
arg
e o
f eva
lua
ting
an
d m
ak
ing
reco
mm
en
da
tion
s on
issue
s
rela
ted
to im
pro
ving
the
pro
fessio
na
lism a
nd
efficie
ncy o
f ad
min
istrative
pro
cesse
s. Th
e A
ud
it Co
mm
ittee
rep
lace
s the
form
er o
utsid
e
au
dito
r’s po
sition
in 2
00
0 a
nd
use
s a sy
stem
of ch
eck
s an
d b
ala
nce
s to su
pe
rvise
an
d su
pp
ort th
e m
an
ag
em
en
t tea
m in
its qu
est to
ma
ximize
corp
ora
te v
alu
e. T
he
Ou
tside
Dire
ctor R
eco
mm
en
da
tion
Co
mm
ittee
is in ch
arg
e o
f imp
artia
lly a
nd
ind
ep
en
de
ntly
sele
cting
ou
tside
dire
ctorsh
ip ca
nd
ida
tes fo
r the
Bo
ard
.
Sa
msu
ng
Ele
ctron
ics’ 20
-me
mb
er B
oa
rd o
f Dire
ctors to
ok
up
a to
tal o
f 34
ag
en
da
item
s ove
r the
cou
rse o
f 12 m
ee
ting
s in 2
00
0,
inclu
din
g th
e a
pp
rova
l of th
e ye
ar 2
00
0 b
usin
ess a
nd
ma
na
ge
me
nt p
lan
, the
de
clara
tion
of a
10%
inte
rim ca
sh d
ivide
nd
of 5
00
wo
n p
er
sha
re in
July, a
nd
the
rep
urch
ase
of 2
% o
f the
tota
l ou
tstan
din
g sto
ck—
3 m
illion
com
mo
n sh
are
s an
d 4
00
,00
0 p
refe
rred
sha
res—
valu
ed
at
53
4.4
billio
n w
on
in O
ctob
er. In
ad
ditio
n to
the
12 g
en
era
l me
etin
gs, th
e M
an
ag
em
en
t Co
mm
ittee
me
t 31 tim
es a
nd
the
Au
dit C
om
mitte
e
nin
e tim
es d
urin
g th
e ye
ar.
Th
e B
oa
rd w
ill un
de
rgo
a fu
nd
am
en
tal ch
an
ge
in fisca
l 20
01 w
ith a
red
uctio
n in
me
mb
ersh
ip fro
m 2
0 d
irecto
rs—in
clud
ing
six ou
tside
dire
ctors—
to 14
, ha
lf of w
hich
will b
e o
utsid
e d
irecto
rs. Th
is cha
ng
e is in
ten
de
d to
acce
lera
te d
ecisio
n-m
ak
ing
as w
ell a
s resp
on
d to
sha
reh
old
er co
nce
rns th
at a
larg
e b
oa
rd is in
efficie
nt in
ma
na
gin
g th
e co
mp
an
y.
Kun-H
ee Lee•
Ch
airm
an
, Sa
msu
ng
Ele
ctron
ics [199
7-p
rese
nt]
• M
em
be
r, Inte
rna
tion
al O
lymp
ic Co
mm
ittee
[199
6-p
rese
nt]
• V
ice ch
airm
an
, Fed
era
tion
of K
ore
an
Ind
ustrie
s
[198
7-p
rese
nt]
• V
ice ch
airm
an
, Ko
rea
-Jap
an
Eco
no
mic C
om
mitte
e
[198
1-pre
sen
t]
• C
ha
irma
n, S
am
sun
g G
rou
p [19
87
-199
8]
Jong-Yong Yun •
Vice
cha
irma
n &
CE
O, S
am
sun
g E
lectro
nics
[199
9-p
rese
nt]
• P
resid
en
t & C
EO
, Sa
msu
ng
Ele
ctron
ics [199
6-19
99
]
• P
resid
en
t & C
EO
, Sa
msu
ng
Jap
an
He
ad
qu
arte
rs
[199
5-19
96
]
• P
resid
en
t & C
EO
, Sa
msu
ng
Disp
lay D
evice
s [199
3-19
95
]
• P
resid
en
t & C
EO
, Sa
msu
ng
Ele
ctro-M
ech
an
ics
[199
2-19
93
]
Board of D
irectors
Managem
ent Comm
ittee
Jon
g-Y
on
g Y
un
[cha
ir]
Yo
on
-Wo
o Le
e
Da
e-Je
Ch
in
Do
h-S
eo
k C
ho
i
Outside D
irector Recom
mendation Com
mittee
Fran
z-He
rma
nn
Hirlin
ge
r [cha
ir]
Su
ng
-Lark
Rim
Jon
g-Y
on
g Y
un
Do
h-S
eo
k C
ho
i
Audit Com
mittee
Su
ng
-Lark
Rim
[cha
ir]
Jae
-Su
ng
Hw
an
g
Ka
p-H
yun
Lee
2001 Board M
embers
Comm
ittees
Hak-S
oo Lee•
Pre
side
nt, C
hie
f of sta
ff Sa
msu
ng
Ele
ctron
ics
[199
8-p
rese
nt]
• P
resid
en
t & C
EO
, Sa
msu
ng
Fire &
Ma
rine
Insu
ran
ce [19
95
-199
8]
• V
ice p
resid
en
t, Sa
msu
ng
Fire &
Ma
rine
Insu
ran
ce [19
93
-199
5]
• E
xecu
tive d
irecto
r, Ch
eil Fo
od
s & C
he
mica
ls
[198
4-19
93
]
22
Franz-Herm
ann Hirlinger
• O
utsid
e d
irecto
r, Sa
msu
ng
Ele
ctron
ics [199
8-p
rese
nt]
• C
hie
f rep
rese
nta
tive a
nd
first vice p
resid
en
t, Ba
yerisch
e
Lan
de
sba
nk
, Se
ou
l & T
ok
yo o
ffices [19
95
-pre
sen
t]
• S
en
ior in
vestm
en
t ma
na
ge
r an
d h
ea
d o
f inte
rna
tion
al
ma
rke
ting
, Cre
dit S
uisse
[199
1-199
5]
• S
en
ior p
ortfo
lio m
an
ag
er, H
ilti AG
, Liech
ten
stein
[199
0-19
91]
Sung-Lark R
im•
Ou
tside
dire
ctor, S
am
sun
g E
lectro
nics [2
00
0-p
rese
nt]
• C
hie
f con
sulta
nt, K
ore
a Fin
an
cial P
lan
ne
r Asso
ciatio
n
[20
00
-pre
sen
t]
• O
utsid
e a
ud
itor, S
am
sun
g E
lectro
nics [19
98
-20
00
]
• P
resid
en
t & C
EO
, Ko
ok
min
Inve
stme
nt T
rust
Ma
na
ge
me
nt [19
98
-20
00
]
• M
an
ag
ing
dire
ctor, K
ore
a Lo
ng
Te
rm C
red
it Ba
nk
[199
8]
• G
en
era
l ma
na
ge
r/dire
ctor, K
ore
a Lo
ng
Te
rm C
red
it
Ba
nk
[198
8-19
98
]
Kap-H
yun Lee•
Ou
tside
dire
ctor, S
am
sun
g E
lectro
nics [2
00
1]
• P
resid
en
t, Ko
rea
Exch
an
ge
Ba
nk
[199
8-2
00
0]
• E
xecu
tive d
irecto
r, Ko
rea
Exch
an
ge
Ba
nk
[199
7-19
99
]
• M
an
ag
ing
dire
ctor, K
ore
a E
xcha
ng
e B
an
k
[199
6-19
97
]
• S
en
ior m
an
ag
er, K
ore
a E
xcha
ng
e B
an
k [19
91-19
96
]
Jae-Sung H
wang
• O
utsid
e d
irecto
r, Sa
msu
ng
Ele
ctron
ics
[20
00
-pre
sen
t]
• E
xam
ine
r, Na
tion
al T
ax T
ribu
na
l [20
00
-pre
sen
t]
• A
dviso
r, Kim
& C
ha
ng
Law
Firm [19
99
-pre
sen
t]
• P
resid
en
t, Kyu
ng
-In/S
eo
ul R
eg
ion
al T
ax O
ffices
[199
6-19
99
]
• H
ea
d o
f Inve
stiga
tion
Bu
rea
u, N
atio
na
l Ta
x Se
rvice
[199
5-19
98
]
Suk-S
oo Kim
• O
utsid
e d
irecto
r, Sa
msu
ng
Ele
ctron
ics
[199
9-p
rese
nt]
• P
resid
en
t, Law
Office
of S
uk
-So
o K
im [19
97
-pre
sen
t]
• C
ha
irma
n, S
up
rem
e C
ou
rt Eth
ics Co
mm
ittee
[199
7-p
rese
nt]
• C
ha
irma
n, C
en
tral E
lectio
n M
an
ag
em
en
t
Co
mm
ission
[199
3-19
97
]
• Ju
stice, S
up
rem
e C
ou
rt [199
1-199
7]
Goran S
. Malm
• O
utsid
e d
irecto
r, Sa
msu
ng
Ele
ctron
ics [20
01]
• P
resid
en
t & C
EO
, Icon
Me
dia
lab
Asia
[20
00
-pre
sen
t]
• P
resid
en
t/Se
nio
r vice p
resid
en
t, De
ll Co
mp
ute
r
Asia
Pa
cific/De
ll Co
mp
ute
r [199
9-2
00
0]
• P
resid
en
t/Se
nio
r vice p
resid
en
t, GE
Asia
-Pa
cific/GE
[199
7-19
99
]
• P
resid
en
t & C
EO
, GE
Me
dica
l Syste
ms A
sia
[199
2-19
97
]
Tetsuo Iwasaki
• O
utsid
e d
irecto
r, Sa
msu
ng
Ele
ctron
ics
[20
00
-pre
sen
t]
• C
o-fo
un
de
r/Ch
airm
an
, Ap
plie
d M
ate
rials Ja
pa
n
[197
9-p
rese
nt]
• P
resid
en
t & C
EO
, Ap
plie
d K
om
atsu
Te
chn
olo
gy
[199
4-p
rese
nt]
• M
em
be
r, OC
EO
Co
mm
ittee
[199
4-p
rese
nt]
In-Joo Kim
• E
xecu
tive V
P, Fin
an
cial M
an
ag
em
en
t Divisio
n,
Sa
msu
ng
Ele
ctron
ics [199
9-p
rese
nt]
• M
an
ag
ing
dire
ctor, Fin
an
cial C
on
trol T
ask
Force
,
Sa
msu
ng
Ele
ctron
ics [199
8-19
99
]
• M
an
ag
ing
dire
ctor, Fin
an
cial M
an
ag
em
en
t De
pt.,
Sa
msu
ng
Gro
up
Re
structu
ring
He
ad
qu
arte
rs [199
8]
• G
en
era
l ma
na
ge
r, Fina
ncia
l Ma
na
ge
me
nt D
ep
t.,
Sa
msu
ng
Gro
up
[199
1-199
9]
Dae-Je Chin
• P
resid
en
t, Dig
ital M
ed
ia S
ystem
Bu
sine
ss Gro
up
,
Sa
msu
ng
Ele
ctron
ics [20
00
-pre
sen
t]
• E
xecu
tive V
P &
CT
O, S
am
sun
g E
lectro
nics
[199
8-2
00
0]
• E
xecu
tive V
P, S
ystem
LSI D
ivision
,
Sa
msu
ng
Ele
ctron
ics [199
7-19
98
]
• G
en
era
l ma
na
ge
r, Me
mo
ry Divisio
n,
Sa
msu
ng
Ele
ctron
ics [198
7-19
97
]
Doh-S
eok Choi•
Pre
side
nt &
CFO
, Sa
msu
ng
Ele
ctron
ics
[199
9-p
rese
nt]
• V
ice p
resid
en
t & co
rpo
rate
con
trolle
r,
Sa
msu
ng
Ele
ctron
ics [199
7-19
99
]
• M
an
ag
ing
dire
ctor &
corp
ora
te co
ntro
ller,
Sa
msu
ng
Ele
ctron
ics [199
4-19
97
]
• E
xecu
tive d
irecto
r & co
rpo
rate
con
trolle
r,
Sa
msu
ng
Ele
ctron
ics [199
1-199
4]
1
Head O
ffice
Sam
sung Main B
uilding2
50
-2 g
a, T
ae
pyo
ng
-ro, C
hu
ng
-gu
Se
ou
l, Ko
rea
Te
l: 82
-2-7
27
-7114
Fax: 8
2-2
-72
7-7
98
5
ww
w.sa
msu
ng
ele
ctron
ics.com
KO
REA
N P
RO
DU
CTION
BA
SES
Suw
on Complex
416
, Ma
eta
n 3
-do
ng
, Pa
lda
l-gu
Su
wo
n, K
yon
gg
i-do
, Ko
rea
Te
l: 82
-31-2
00
-1114
Fax: 8
2-3
1-20
0-15
30
Kiheung Plant
Sa
n-2
4, N
on
gsu
-ri, Kih
eu
ng
-eu
p
Yo
ng
in-g
un
, Kyo
ng
gi-d
o, K
ore
a
Te
l: 82
-2-7
60
-7114
Fax: 8
2-2
-76
0-7
04
9
Onyang Plant
Sa
n-7
4, B
uk
su-ri, P
ae
ba
ng
-myo
n
Asa
n-g
un
, Ch
un
gch
on
gn
am
-do
Ko
rea
Te
l: 82
-41-5
40
-7114
Fax: 8
2-4
1-54
8-7
04
9
Kum
i Plant2
59
, Ko
ng
da
n-d
on
g, K
um
i
Kyo
ng
san
gb
uk
-do
, Ko
rea
Te
l: 82
-54
-46
0-2
114
Fax: 8
2-5
4-4
60
-2111
Kw
angju Plant2
17, O
san
-do
ng
, Kw
an
gsa
n-g
u
Kw
an
gju
, Ko
rea
Te
l: 82
-62
-95
0-6
114
Fax: 8
2-6
2-9
50
-60
19
Chonan PlantS
an
33
-11, Su
ng
sun
g-d
on
g
Ch
on
an
, Ch
un
gch
on
gn
am
-do
Ko
rea
Te
l: 82
-41-5
29
-7114
Fax: 8
2-4
1-52
9-6
04
9
OV
ERS
EAS
NETW
OR
K
CHIN
AProduction B
asesTianjin Tongguang S
amsung Electronics
Co., Ltd. (TTSEC)
Tia
njin
, Ch
ina
Te
l: 86
-22
-22
96
-24
00
Tianjin Sam
sung Electronics Co., Ltd. (TSEC)
Tia
njin
, Ch
ina
Te
l: 86
-22
-25
32
-123
4
Huizhou S
amsung Electronics Co., Ltd. (S
EHZ)
Gu
an
gd
on
g, C
hin
a
Te
l: 86
-75
2-3
32
-140
1
Shandong S
amsung Telecom
munications
Co., Ltd. (SS
T)S
ha
nd
on
g, C
hin
a
Te
l: 86
-63
1-56
2-6
86
8
Suzhou S
amsung Electronics Co., Ltd. (S
SEC)
Jian
gsu
, Ch
ina
Te
l: 86
-512
-53
2-12
34
Tianjin Sam
sung Electronics Display
Co., Ltd. (TSED
)T
ian
jin, C
hin
a
Te
l: 86
-22
-24
55
-62
42
Sam
sung Electronics Suzhou S
emiconductor
Co., Ltd. (SES
S)
Jian
gsu
, Ch
ina
Te
l: 86
-512
-76
1-22
97
China Customer S
atisfaction (CCS)
Te
l: 86
10-6
49
7-3
36
6
AS
IAProduction B
asesS
amsung Electronics Indonesia (S
EIN)
We
st Jaw
a, In
do
ne
sia
Te
l: 62
-21-8
93
-40
05
Sam
sung Electronics Display (M
) S
dn. Bhd. (S
DM
A)
Se
rem
ba
n N
eg
eri S
em
bila
n
Da
rul K
hu
sus, M
ala
ysia
Te
l: 60
-6-6
70
-30
00
Sam
sung Electronics (M) S
dn. Bhd. (S
EMA
)P
ort K
lan
g, S
ela
ng
or, M
ala
ysia
Te
l: 60
-3-3
176
-20
50
Sam
sung India Electronics (SIEL)
No
ida
, Ind
ia
Te
l: 91-11-8
-45
6-8
25
1
Sam
sung Vina Electronics Co., Ltd. (S
AV
INA
)H
o C
hi M
in C
ity, Vie
tna
m
Te
l: 84
-8-8
96
-55
00
Thai Sam
sung Electronics Co., Ltd. (TSE)
Srira
cha
Ch
olb
uri, T
ha
ilan
d
Te
l: 66
-2-6
81-0
50
1
Sales B
asesS
amsung A
sia Private Ltd. (S
emiconductor D
ivision), (SA
PL)U
E S
qu
are
, Sin
ga
po
re
Te
l: 65
-83
3-3
20
0
Sam
sung Electronics Australia Pty. Ltd. (S
EAU
)N
SW
, Au
stralia
Te
l: 61-2
-96
38
-52
00
Sam
sung Electronics India Information &
Telecom
munication Ltd. (S
EIIT)La
jpa
t Na
ga
r-III Ne
w D
elh
i
Te
l: 91-11-6
93
25
17
Sam
sung Electronics Philippines Co. (SEPCO
)M
an
ila, P
hilip
pin
es
Te
l: 63
-2-5
26
-37
96
Sam
sung Electronics H.K
. Co., Ltd. (SEH
K)
Ho
ng
Ko
ng
Te
l: 85
2-2
86
2-6
90
0
Sam
sung Japan Corporation (SJC)
To
kyo
, Jap
an
Te
l: 81-3
-56
41-9
80
0
Sam
sung Electronics Taiwan Co., Ltd. (S
ET)T
aip
ei, T
aiw
an
Te
l: 88
6-2
-27
58
-95
88
Asia Custom
er Satisfaction (A
CS)
Te
l: 65
-56
8-7
50
0
GLO
BA
L NETW
OR
K
2
CISProduction B
aseU
zbekistan Sam
sung Electronica Co., Ltd. (US
E)T
ash
ke
nt, U
zbe
kista
n
Te
l: 7-3
71-18
0-0
90
9
Sales B
asesS
amsung Electronics M
oscow Co., Ltd. (S
EMCO
)M
osco
w, R
ussia
Te
l: 7-0
95
-79
7-2
38
5
Sam
sung Russia S
ervice Center (SR
SC)
Te
l: 75
02
-56
4-8
210
EUR
OP
EProduction B
asesS
amsung W
ynyard Park (SEM
UK
)C
leve
lan
d, U
.K.
Te
l: 44
-174
0-6
60
00
0
Sam
sung Electronica Espanola, S.A
. (SES
A)
Ba
rcelo
na
, Sp
ain
Te
l: 34
-93
-86
2-9
60
0
Sam
sung Electronics Hungarian Co., Ltd. (S
EH)
Bu
da
pe
st, Hu
ng
ary
Te
l: 36
-1-25
0-2
311
Sales B
asesS
amsung Electronics G
mbH
(SEG
) S
chw
alb
ach
/TS
., Ge
rma
ny
Te
l: 49
-619
6-6
6-10
00
Sam
sung Sem
iconductor Europe Gm
bH (S
SEG
)S
chw
alb
ach
/TS
., Ge
rma
ny
Te
l: 49
-619
6-6
6-3
30
0
Sam
sung Sem
iconductor Europe Limited (S
SEL)
Mid
dle
sex, U
.K.
Te
l: 44
-181-3
80
-72
00
Sam
sung Electronics U.K
. Ltd. (SEU
K)
Su
rbito
n S
urre
y, U.K
.
Te
l: 44
-181-3
91-0
168
Samsung Electronics France S.A. (SEF)
Ce
de
x, Fran
ce
Te
l: 33
-1-49
38
-65
25
Sam
sung Electronics Italia S.p.A
. (SEI)
Ce
rnu
sco su
l Na
viglio
, Italy
Te
l: 39
-2-9
218
91
Sam
sung Electronics Svenska A
B (S
ESA
B)
Va
sby, S
we
de
n
Te
l: 46
-8-5
90
-96
6-0
0
Sam
sung Electronics Polska Sp.Zo.O
(SEPO
L) W
arsa
w, P
ola
nd
Te
l: 48
-22
-60
8-4
40
0
Sam
sung Electronica Portuguesa S.A
. (SEP)
Lind
a-a
-Ve
lha
, Po
rtug
al
Te
l: 35
1-1-414
-810
0
Sam
sung Electronics Benelux B
.V. (S
EN)
Rijsw
ijk, T
he
Ne
the
rlan
ds
Te
l: 31-7
0-3
07
-29
10
Sam
sung Electronics Overseas B
.V. (S
EO)
Am
sterd
am
, Th
e N
eth
erla
nd
s
Te
l: 31-2
0-5
75
-30
12
Europe Customer Satisfaction (ECS)
Te
l: 44
1-95
-22
0-7
126
MID
DLE EA
ST &
AFR
ICAS
ales Bases
Sam
sung Electronics South A
frica Ltd. (SS
A)
Joh
an
ne
sbu
rg, S
ou
th A
frica
Te
l: 27
-11-25
4-3
66
8
Sam
sung Gulf Electronics FZE (S
GE)
Du
ba
i, U.A
.E.
Te
l: 97
14-8
81-3
33
5
Gulf Custom
er Satisfaction (G
CS)
Te
l: 97
14-8
83
-84
16
AM
ERICA
Production Bases
Sam
sung Mexicana S
.A. de. C.V
. (SA
MEX)
Tiju
an
a, M
exico
Te
l:1-619
-67
1-60
00
Samsung Electronica da Am
azonia, Ltda. (SEDA)
Sa
o P
au
lo, B
razil
Te
l: 55
-11-56
44
-64
00
Samsung Austin Sem
iconductor (SAS)T
exa
s, U.S
.A.
Te
l: 1-512
-67
2-10
00
Sales B
asesS
amsung Electronics A
merica, Inc. (S
EA)
Ne
w Je
rsey, U
.S.A
.
Te
l: 1-20
1-22
9-4
00
0
Sam
sung Telecomm
unications A
merica, Inc. (S
TA)
Te
xas, U
.S.A
.
Te
l: 1-97
2-7
61-7
00
0
Sam
sung Sem
iconductor Inc. (SS
I)C
alifo
rnia
, U.S
.A.
Te
l: 1-40
8-5
44
-40
00
Alpha Processor, Inc. (A
PI)M
assa
chu
setts, U
.S.A
.
Te
l: 1-97
8-3
18-110
0
Sam
sung Electronics Canada Inc. (SECA
)O
nta
rio, C
an
ad
a
Te
l: 90
5-8
19-5
05
6
Sam
sung Electronics Mexicana S
.A. (S
EM)
Me
xico D
.F., Me
xico
Te
l: 52
5-7
47
-510
0
Sam
sung Information S
ystems
Am
erica, Inc. (SIS
A)
Ca
liforn
ia, U
.S.A
.
Te
l: 1-40
8-5
44
-54
35
Sam
sung Electronics Latinoamerica
(Zona Libre), S.A
. (SELA
-Panama)
Pa
na
ma
City, P
an
am
a
Te
l: 50
7-2
10-112
2
Sam
sung Electronics Latinoamerica
Miam
i Inc. (SELA
-Miam
i)M
iam
i, U.S
.A.
Te
l: 1-30
5-5
94
-109
0
Sam
sung Electronics Latinoamerica
Colombia S
.A. (S
ELA-Colom
bia)S
an
tafe
de
Bo
go
ta, C
olo
mb
ia
Te
l: 57
1-63
3-4
47
0
Sam
sung Electronics Argentina S
.A. (S
EAS
A)
Bu
en
os A
ires, A
rge
ntin
a
Te
l: 54
-11-43
08
-46
68
Global S
ervice Netw
ork
3
Thank you for your interest in Sam
sung Electronics!
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ll the
late
st ne
ws a
nd
inve
stor in
form
atio
n, p
lea
se visit o
ur w
eb
site a
t
ww
w.sa
msu
ng
ele
ctron
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an
d p
oin
t you
r mo
use
at th
e "
wh
o w
e a
re"
link
in th
e u
pp
er le
ft corn
er.
IR T
ea
m, 2
4th
Floo
r, Sa
msu
ng
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in B
uild
ing
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0-2
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ep
yun
g-ro
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un
g-g
u, S
eo
ul, K
ore
a
E-m
ail: IR
Te
am
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msu
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on
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