LG Electronics
`
`Interim Consolidated Financial Statements
`
`June 30, 2015 and 2014
`
`

`
`LG Electronics
`
`Notes to the Interim Consolidated Financial Statements
`June 30, 2015 and 2014(unaudited), and December 31, 2014
`
`
`
`iii)
`
`Investments in joint ventures are as follows:
`
`
`
`(in millions of Korean won)
`
`LG Holdings(HK) Ltd.
`
`Arcelic-LG Klima Sanayi ve
`Ticarta A.S.(LGEAT)
`
`
`
`
`
`
`
`
`
`Acquisition
`cost
`
`
`
`June 30, 2015
`Net asset
`Unrealized
`amount
`gain
`
`
`
`
`
`Carrying
`amount
`
`
`
`
`
`Acquisition
`cost
`
`
`
`December 31, 2014
`Net asset
`Unrealized
`amount
`gain
`
`
`
`
`
`Carrying
`amount
`
`115,234
`
`135,210
`
`-
`
`135,210
`
`115,234
`
`127,256
`
`-
`
`127,256
`
`14,718
`
`43,180
`
`(708)
`
`42,472
`
`14,718
`
`44,908
`
`(345)
`
`44,563
`
`EIC PROPERTIES PTE LTD.
`
`9,636
`
`14,081
`
`-
`
`-
`
`14,081
`
`9,636
`
`13,912
`
`616
`
`516
`
`639
`
`-
`
`-
`
`13,912
`
`639
`
`LG-MRI LLC
`
`Total
`
`
`
`
`
`516
`
`616
`
`140,104
`
`193,087
`
`(708)
`
`192,379
`
`140,104
`
`186,715
`
`(345)
`
`186,370
`
`(b) Associates and joint ventures
`
`i) Associates as of June 30, 2015, are as follows:
`
`
`
`
`
`Percentage of
`ownership
`
`37.9%
`
`
`
`
`
`
`
` Location
`
`Closing
`Month
`
`LG Display Co., Ltd.
`
`
`
`Korea
`
` December
`
`Ericsson-LG Co., Ltd
`
`Hitachi-LG Data Storage
`Inc.(HLDS)
`Korea Information
`Certificate Authority Inc.1
`
`LG Fuel Cell Systems Inc.
`
`
`
`
`
`
`
`
`
`Korea
`
` December
`
`Japan
`
` December
`
`Korea
`
` December
`
`USA
`
` December
`
`SKT Vietnam PTE., Ltd.
`
` Singapore December
`
`One-Red, LLC
`
`
`
`USA
`
`
`
`March
`
`
`
`
`
`
`
`
`
`
`
`
`
`Nature of relationships
`with the Group
`Production and supply of
`display products
`
`Supply of communication
`devices and network
`solution products
`
`Production and supply of
`data storages
`
`
`
`
`
`25.0%
`
`49.0%
`
`7.5%
`
` Certificate services
`
`29.2%
`
`25.4%
`
`25.0%
`
` R&D of fuel cell
`
` Communication services
`
` DVD related patent licensing
`
`1 Classified as an associate although the percentage of ownership is less than 20% because the Group can
`
`exercise its voting rights through the Board of Directors.
`
`ii) Joint ventures as of June 30, 2015, are as follows:
`
`All joint arrangements, over which the Group has joint control, are structured through separate
`
`companies and are categorized as joint ventures as the parties with joint control are assumed
`
`to have rights to the net assets of the arrangement.
`
`(in millions of Korean won)
`
` Location
`
`Closing
`month
`
`LG Holdings(HK) Ltd.
`
` China
`
` December
`
`Arcelic-LG Klima Sanayi ve
`Ticarta A.S.(LGEAT)
`EIC PROPERTIES PTE
`LTD.
`
` Turkey
`
` December
`
` Singapore December
`
`LG-MRI LLC
`
` USA
`
` December
`
`
`
`
`
`
`
`
`
`
`
`Percentage of
`ownership
`
`
`
`Nature of relationships
`with the Group
`
`49.0%
`
` Real estate
`
`50.0%
`
`
`
`Production and supply of air
`conditioning products
`
`38.2%
`
` Real estate
`
`50.0%
`
`
`
`Production and supply of
`digital display products
`
`iii) All associates and joint ventures are accounted for using the equity method.
`
`
`
`
`
`38