Seoul, Korea, September 20, 2004
hynix Semiconductor Inc. (“hynix” or “the Company”) had been under investigation by the Korea Deposit Insurance Corporation from late 2003 to early 2004.
The major purpose of the investigation was to verify the cause of the insolvency of the company for the financial years prior to the year when the company had disaffiliated from the Hyundai Group, and also to investigate the inappropriate use of funds by former management, supports to the Hyundai affiliates, and inappropriateness in the accounting treatment.
Following the investigation by the Korea Deposit Insurance Corporation, related organizations such as Korea Financial Supervisory Service and Public Prosecutors’ Office are now investigating the case, but the final determination is yet to be confirmed.
Regardless of the determination, all of the controversial accounting items have been fully corrected and completely been reflected on our historical financial statements and thus no such controversial accounting items now exist.
Therefore, we believe the result from this investigation will have no impact on our current members of the management and also to their management of the company. We will also keep making every endeavor to complete the projects which we are strategically driving, along with the business normalization. We are very sorry to all of the interested parties including our shareholders to have caused concerns, and also we show our regrets to some of the news reports that have not accurately reflected our status, and thus we will strictly respond to any damages that may be caused on the company’s credibility.
