Responsive disclosure regarding the news report of
plans for establishment of plant in the Czech Republic.
Regarding the fact that we are studying the establishment of a new plant in the European area in order to strengthen our business within the European market, we have met with the government officials of the Czech Republic, including the prime minister and investment commissioner on September 30, 2005. Currently, we are closely studying the Czech Republic as a plant site candidate in Europe; however, no concrete decision has been made.
1. Type of plan : Establishment of a plant in Europe.
- Establishment of the global production system by securing a production base in the European area.
2. Estimated total investment amount : 1,000,000,000 EURO
3. Scale of plant : 300,000 units production per year
- We expect to produce European-design models that suit the taste of European customers.
4. Schedule :
- In 2006 : Groundbreaking of new plant
- In 2 nd half of 2008 :
Target start of mass production
5. Plant site candidate : we are studying the Czech Republic as a strong candidate.
6. Expected effect :
- Effective response to trade friction because of regional economic blocs.
- Minimize currency fluctuation risks
- Secure competitiveness through the reduction of contribution costs and the exemption of tariffs.
We will disclose any further details upon its conclusion by the end of March, 2006.
Name of Disclosure Officer : Yoo No Hwang,
Director, Head of Financial Management Group