in Korean won

2008

2007

  Cash flows from operating
  activities

  Net loss

(11,113,718,884) 

(20,378,650,026) 

  Adjustments to reconcile net
  income to net cash provided by
  (used in) operating activities:

  Depreciation

22,010,874,392 

13,911,020,041 

  Amortization

323,846,585 

358,204,069 

  Severance benefits

2,576,905,552 

5,394,253,790 

  Bad debt expenses

- 

2,781,357,398 

  Loss on equity-method
  investments

27,840,519,092 

38,348,073,259 

  Loss on impairment of investments

36,000,000 

725,456,377 

  Loss on disposal of property,
  plant and equipment

176,595,913 

686,456,157 

  Loss on foreign currency
  translation

1,017,682,069 

123,263,489 

  Loss on disposal of available-for-
  sale securities

- 

12,533,185 

  Loss on impairment of equity-
  method investments

- 

856,700,022 

  Loss on disposal of equity-method
  investments

57,716,224 

- 

  Loss on valuation of currency
  forward contracts

653,554,206 

28,824,851 

  Loss on prior period error
  corrections

- 

6,972,865,990 

  Provision for product warranties

28,231,853 

12,944,089 

  Loss on impairment of property,
  plant and equipment

14,448,073 

- 

  Gain on foreign currency
  translation

(1,920,647,991) 

(40,177,421) 

  Gain on disposal of available-for-
  sale securities

- 

(4,545,863,486) 

  Gain on equity-method
  investments

(10,443,610,283) 

(11,049,789,748) 

  Reversal of loss on impairment of
  investments

- 

(16,000,000) 

  Gain on valuation of currency
  forward contracts

(848,578,466) 

(199,617,984) 

  Gain on disposal of property and
  equipment

(622,246,575) 

(703,444,629) 

  Gain on prior period error
  corrections

- 

(6,749,922,807) 

  Reversal of provision for forest
  restoration obligation

(154,695,000) 

- 

  Reversal of allowance for
  doubtful accounts

(3,601,406,537) 

- 

  Gain on disposal of equity method
  investments

(18,599,174) 

- 

37,126,589,933 

46,907,136,642 

  Changes in operating assets and
  liabilities:

  Decrease (increase) in trade
  accounts receivable

3,437,798,954 

(1,443,054,135) 

  Decrease (increase) in other
  accounts receivable

(698,592,283) 

851,874,657 

  Increase in short-term loans

- 

(221,887,803) 

  Decrease in accrued income

1,057,413,235 

656,356,642 

  Decrease (increase) in advance
  payments

1,152,170,152 

(556,074,834) 

  Decrease (increase) in prepaid
  expenses

347,846,877 

(18,415,121) 

  Decrease (increase) in inventories

(38,076,499,482) 

6,073,697,562 

  Decrease (increase) in current
  deferred tax assets

429,177,015 

(1,046,661,171) 

  Increase (decrease) in non-current
  deferred tax liabilities

1,853,528,775 

(1,297,204,032) 

  Increase (decrease) in trade
  accounts payable

14,115,817,733 

(1,246,729,450) 

  Increase (decrease) in other
  accounts payable

(8,230,031,448) 

9,134,035,078 

  Increase (decrease) in
  advance receipts

246,644,326 

(1,796,985,940) 

  Decrease in withholding taxes

(1,574,170) 

(895,841,350) 

  Decrease in withholdings

(22,592,571) 

(153,237,614) 

  Decrease in VAT payables

(176,902,064) 

(1,307,078,214) 

  Increase (decrease) in accrued
  expenses

(1,616,464,489) 

2,106,100,832 

  Increase (decrease) in income
  taxes payable

669,147,155 

(4,403,469,364) 

  Decrease in currency forward
  contracts assets

170,793,133 

25,980,717 

  Decrease in currency forward
  contracts liabilities

-

(1,428,923) 

  Payment of accrued severance
  benefits

(2,063,989,984) 

(1,266,873,184) 

  Payment of bonus to directors

(50,000,000) 

(50,000,000) 

  Decrease (increase) in severance
  insurance deposits

573,651,524 

(3,606,906,976) 

  Decrease in National Pension Fund

42,298,500 

27,916,200 

  Decrease in deposits received

(865,403,074) 

(597,663,762) 

  Decrease in provison for product
  warranties

(45,995,725) 

(87,344,971) 

  Increase in provision for forest
  restroration obligation

29,109,000 

432,091,182 

(27,722,648,911) 

(688,803,974) 

  Net cash provided by (used in)
  operating activities

(1,709,777,862) 

(25,839,682,642) 

  Cash flows from investing
  activities

  Decrease in short-term financial
  instruments

120,500,000,000 

126,000,000,000 

  Increase in short-term financial
  instruments

(36,000,000,000) 

(84,500,000,000) 

  Decrease in short-term loans

8,935,000,000 

22,000,000,000 

  Increase in short-term loans

(18,577,630,572) 

(45,000,000,000) 

  Decrease in long-term financial
  instruments

- 

13,016,474 

  Disposal of available-for-sale
  securitiest

- 

7,082,798,159 

  Aquisition of available-for-sale
  securities

- 

(616,848,000) 

  Decrease in equity method
  investments

33,202,100,840 

- 

  Acquisition of equity-ethod
  investments

(72,857,053,009) 

(19,634,560,500) 

  Decrease in guarantee deposits

40,000,000 

2,429,699,790 

  Increase in guarantee deposits

(624,914,298) 

(419,900,210) 

  Disposal of property, plant and
  equipment

558,555,134 

733,699,250 

  Acquisition of property and
  equipment

(10,107,740,447) 

(40,031,842,089) 

  Disposal of intangible assets

120,817,044 

- 

  Acquisition of intangible assets

(370,407,916) 

(287,678,895) 

  Receipt of cash dividends

4,201,001,637 

7,941,899,632 

  Net cash provided by (used in)
  investing activities

29,019,728,413 

24,289,716,389 

  Cash flows from financing
  activities

  Payment for dividends

7,818,241,330 

9,503,722,650 

  Net cash used in financing
  activities

(7,818,214,330)

(9,503,722,650)

  Net increase (decrease) in cash
  and cash equivalent

19,491,736,221

(7,953,756,397)

  Cash and cash equivalents

  Beginning of year

31,719,218,634 

39,672,975,031 

  End of year

51,210,954,855 

31,719,218,634