2.0.0.10 true Related Party Transactions (Accumulated Other Comprehensive Income) 128 - Disclosure - Related Party Transactions true false false false 1 KRW ₩ true false false false Accumulated Other Comprehensive Income us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedOtherComprehensiveIncomeMember us-gaap_StatementEquityComponentsAxis explicitMember iso4217_KRW Standard http://www.xbrl.org/2003/iso4217 KRW iso4217 0 2 Related Party Transactions 2 us-gaap_RelatedPartyTransactionsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">21.</td> <td valign="top" align="left">Related Party Transactions</td> </tr> </table> In the normal course of business, the Company purchases raw materials from, and sells its products to, stockholder companies and other companies within LG Group. LG Corp., the major stockholder of LG Electronics, is the holding company of LG Group. Other related parties of the Company within LG Group include LG International Corp., LG Chem, Ltd., and LG CNS Co., Ltd. Sales to LG Electronics The Company sells TFT-LCD panels, primarily large-size panels for televisions, notebook computers and desktop monitors and other applications, to LG Electronics (including its overseas subsidiaries) and certain of its affiliates on a regular basis. Sales to LG Electronics including its subsidiaries on an invoiced basis amounted to (Won)2,516,874 million, (Won)3,448,166 million and (Won)4,652,913 million in 2007, 2008 and 2009, respectively. The balance of receivables from LG Electronics and its subsidiaries amounted to (Won)442,943 million and (Won)719,798 million as of December 31, 2008 and 2009, respectively. Sales to LG International The Company sells its products to certain subsidiaries of LG International, the Controlling Company’s affiliated trading company, in regions where the Company does not have a sales subsidiary, or where doing so is consistent with local market practices. These subsidiaries of LG International process orders from and distribute products to customers located in their region. Sales to LG International and its subsidiaries on an aggregate basis amounted to (Won)1,189,842 million, (Won)1,009,615 million and (Won)1,467,655 million in 2007, 2008 and 2009, respectively. The balance of receivables from LG International and its subsidiaries amounted to (Won)147,467 million and (Won) 272,756 million as of December 31, 2008 and 2009, respectively. Sales to Other Related Parties The Company’s total sales to its related parties excluding LG Electronics, LG International and their subsidiaries amounted to (Won)1,769,253 million, (Won)1,943,392 million and (Won)1,469,095 million for the years ended 2007, 2008 and 2009. These amounts include sales to Philips Electronics and its affiliates on an invoiced basis which amounted to (Won)1,704,297 million and (Won)1,636,796 for the years ended December 31, 2007, 2008 and sales to Philips Electronics in 2009 for the period prior to its disposition of equity interest in the Company in March 2009 which amounted to (Won)149,641 million. The balance of receivables from related parties excluding LG Electronics, LG International and their subsidiaries amounted to (Won)214,400 million and (Won)210,914 million as of December 31, 2008 and 2009, respectively. These amounts include receivables from Philips Electronics and its affiliates which amounted to (Won)139,268 million as of December 31, 2008.   Purchases from LG International The Company procures a portion of its production materials, supplies and services, from LG International and its subsidiaries in Japan, Europe and the United States. The Company uses these subsidiaries in order to take advantage of their relationships with vendors, experience in negotiations and logistics as well as their ability to obtain volume discounts. The Company’s purchases, including purchases of materials, supplies and services, from LG International and its subsidiaries, amounted to (Won)429,394 million, (Won)1,643,446 million and (Won) 1,030,921 million for the years ended 2007, 2008 and 2009, respectively. The balance of payables to LG International and its subsidiaries amounted to (Won)559,802 million and (Won)171,681 million as of December 31, 2008 and 2009, respectively. Other Purchases Under a master purchase agreement, the Company procures, on an “as-needed” basis, raw materials, components and other materials necessary for the Company’s production process from LG Electronics and its affiliated companies. The Company’s total purchases, including purchases of materials, supplies and services, from its related parties including LG Electronics and its affiliated companies, excluding LG International and its subsidiaries, amounted to (Won)1,972,244 million, (Won)3,561,122 million and (Won)4,829,118 million for the years ended 2007, 2008 and 2009. These amounts include purchases of raw materials, such as polarizers, from LG Chem Ltd. which amounted to (Won)862,868 million, (Won)1,146,514 million and (Won)1,687,675 million for the years ended 2007, 2008 and 2009, respectively and purchase from Philips Electronics which amounted to (Won)13,784 million, (Won)9,212 million for the years ended 2007 and 2008. There were no purchases from Philips Electronics in 2009 for the period prior to its disposition of equity interest in the Company in March 2009. The balance of payables to related parties excluding LG International and its subsidiaries amounted to (Won)672,406 million and (Won)1,252,560 million as of December 31, 2008 and 2009, respectively. In addition, the Company benefits from certain licenses extended to the Company from license or cross-license agreements between LG Electronics and third parties. Under the terms of the joint venture agreement with Philips Electronics, LG Electronics had assigned most of its patents relating to the development, manufacture and sale of TFT-LCD products to the Company and the Company had agreed to maintain joint ownership of those patents that were not assigned to the Company. Pursuant to a grantback agreement entered into with LG Electronics in July 2004, in the event of any intellectual property dispute between LG Electronics and a third party relating to those patents jointly owned by LG Electronics and the Company, the Company intends to allow LG Electronics to assert ownership in those patents for all non TFT-LCD applications and to license or grant other rights in such patents for use by the licensee in non-TFT-LCD applications in order to settle such disputes.   Trademark Agreement with LG Corp. The Controlling Company entered into a trademark license agreement with LG Corp., the holding company of the LG Group, in July 2004 for use of the “LG” name. Under the agreement, the Controlling Company began making monthly payments to LG Corp. in the aggregate amount per year of 0.1% of sales, net of advertising expenses, in 2005. This trademark license agreement expired on December 31, 2007, and although the agreement allowed for an automatic renewal, the Controlling Company signed a new trademark license agreement with LG Corp. in February 2008. Under the new agreement, from January 1, 2008 to June 30, 2008 and from July 1, 2008 to December 31, 2010, the Company is required to make monthly payments to LG Corp. in the aggregate amount per year of 0.1% and 0.2% of sales, respectively, net of advertising expenses.   </div> false false false This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 false false 1 1 false UnKnown UnKnown UnKnown false true