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expires, which is when a stipulated time restriction ends or purpose restriction is met, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

6. INVESTMENT SECURITIES Investment securities consisting of available-for-sale and held-to-maturity securities as of December 31, 2007 and 2008 are as follows (Korean won in

c. Permanently restricted net assets : Net assets that were contributed when

thousands) :

the Foundation was established. These net assets will be used solely upon the

6-1. Available-for-sale securities

approval of the board of directors and relevant governmental body. Expenses are reported as decreases in unrestricted net assets. Income, gains and losses on investments are reported as increases or decreases in unrestricted net

Investee

Share

assets unless their use is restricted by explicit donor stipulations or by law.

4. CASH AND CASH EQUIVALENTS, AND SHORT-TERM FINANCIAL INSTRUMENTS Cash and cash equivalents and short-term financial instruments as of December 31, 2007 and 2008 are summarized as follows (Korean won in thousands) :

Classification Financial institution Cash and cash equivalents : Cash on hand Ordinary deposits Repurchase agreement

Shinhan Bank KTB Investment & Securities Sub-total Short-term financial instruments : Time deposits Woori Bank Bond Woori Investment Securities Beneficiary certificate Bond

Shinhan Bank Sub-total Total

2007 ₩

807

2008 ₩

Acquisition cost

Fair value

Korean won Carrying value 2007 2008

Kalton 14,000 0.88% ₩ 7,000 ₩ 7,000 ₩ 7,000 Chemistry Kyobo private derivative 500,000 474,874 investment trust Total ₩ 507,000 ₩ 481,875 ₩ 7,000

7,000

Translation into U.S. dollar (Note 2) Carrying value 2008 US$

5,567

474,874

377,633

₩ 481,874

US$ 383,200

The Foundation received the above as a donation in 2002. The donated securities’

Translation into U.S. dollar (Note 2)

Korean won

Equity ratio

face value is ₩500.

2008

243

US$

193

556,940 -

774,252 200,000

615,707 159,046

557,747

974,495

774,946

200,000 800,000 1,150,000

600,000 -

477,137 -

300,000 2,450,000 ₩ 3,007,747

600,000 ₩ 1,574,495

477,137 US$ 1,252,083

6-2. Held-to-maturity securities Translation into U.S. dollar (Note 2) 2007 2008 2008 Classification Maturity Face value Book value Face value Book value Book value Beneficiary More than 1 year ₩ 463,636 ₩ 463,636 ₩ - ₩ - US$ certificate and less than 5 years Bonds 200,024 200,024 1,100,025 1,100,025 874,771 〃 Sub-total 1,600,000 663,660 1,100,025 1,100,025 874,771 Bonds over 5 years 200,000 200,000 600,000 600,000 477,137 Sub-total 200,000 600,000 600,000 477,137 ₩ 863,660 ₩ 863,660 ₩ 1,700,025 ₩ 1,700,025 US$ 1,351,908 Total Korean won

5. RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents whose use has been limited by donors to designated activities as of December 31, 2007 and 2008 are summarized as follows (Korean won in thousands) :

Cash and cash equivalents

Total

The changes in book-value of property and equipment for the years ended December 31, 2007 and 2008 are as follows (Korean won in thousands) :

Translation into Korean won U.S. dollar (Note 2) Bank 2007 2008 2008 Shinhan ₩ 14,769 US$ 281 IYF ₩ 353 Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Woori Kookmin Shinhan Shinhan Shinhan Kookmin Kookmin

7. PROPERTY AND EQUIPMENT

27,023 113,572 4,406 21,365 6,468 9,818 5,759 14,398 6,499 15,014 189,599 28,676 457,366

26,594 21,148 83,101 66,084 10,760 8,557 11,046 8,784 9,028 7,179 13,497 10,733 3 2 6,416 5,102 240,488 191,243 6 5 1,100 875 8,290 6,592 12,462 9,910 212,799 169,224 44,925 36 680,868 US$505,755

(2008) Account Designated activity

Love Concert Independent Fund Economy Education Love Sharing Foundation KTB Investment and Securities Project The Spring of Hope Fund Siemens Project Community Chest of Korea Community Chest of Korea and EBS Project Ernest&Young Fund Running Shoes of Hope Fund The Hiddink Foundation KB Bank Study Room Fund MBC ESPN, Sports Toto Fund Adidas Han-Hwa Fund KB Bank Fund KB Bank Fund

Equipment

January 1 Purchase 2008 ₩ 26,163 ₩ 27,987

Disposal

January 1 Purchase 2007 ₩ 18,414 ₩ 14,343

Disposal

Increase by transfer ₩ 12,824 ₩ 9 Translation into U.S dollar (Note 2)

December 31 2008 ₩ 41,317 US$32,856

Increase by transfer ₩ -

December 31 2007 ₩ 26,163

Depreciation

(2007) Account Equipment

-

Depreciation ₩ 6,594

8. GENERAL AND ADMINISTRATIVE EXPENSES Details of general and administrative expenses for the years ended December 31, 2007 and 2008 are as follows (Korean won in thousands) : Korean won

Account Salaries Severance indemnities Employee benefits Responsibility subsidy Travel

2007 ₩ 281,310 21,222 35,422 1,187

2008 ₩ 400,394 29,768 45,282 3,929 2,214

Translation into U.S. dollar (Note 2) 2008 US$ 318,405 23,672 36,010 3,124 1,761

Annual report 2008 en  
Annual report 2008 en  
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