LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
June 30, 2023 and 2022
(Unaudited)
15. |
Contingent Liabilities and Commitments, Continued |
Long-term Supply Agreement
As of June 30, 2023, in connection with long-term supply agreements with customers, the Controlling Company recognized USD
1,200 million (W1,575,360 million) in advances received. The advances received will be used to offset accounts receivable arising from future product sales after a specified period of time. The Controlling Company received
payment guarantees amounting to USD 1,200 million (W1,575,360 million) from KB Kookmin Bank and other various banks relating to advances received (see note 15(b)).
Pledged Assets
In
connection with the borrowings amounting to CNY 11,160 million (W2,020,518 million) from China Construction Bank Corporation and others, as of June 30, 2023, the Group is providing its property, plant and equipment with
carrying amount of W734,397 million as pledged assets.
In connection with the borrowings amounting to USD
500 million (W656,400 million) and W450,000 million from Shinhan Bank and others, as of June 30, 2023, the Group is providing its Deposit in bank to with carrying amount of CNY 6,418 million
(W1,162,065 million) as pledged assets.
In addition, in connection with the borrowings amounting to
W1,000,000 million from related party, as of June 30, 2023, the Controlling Company is providing its property, plant and equipment with carrying amount of W542,051 million as pledged assets (see note 12(c)).
In connection with the borrowing amounting to W404,000 million from Korea Development Bank and others as of June 30,
2023, the Group is providing its property, plant and equipment with carrying amount of W104,402 million as pledged assets.
Commitments for asset acquisition
The Groups commitments in relation to capital expenditures on property, plant and equipment and intangible assets as of June 30,
2023 are W1,017,864 million.
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