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This is the present Kyochon.
We promise we will also show good results in the future.

Non-Consolidated Balance Sheets
December 31, 2006 and 2005 and 2004 In of Korean Won, U.S. Dollars in thousands

	2004	2005	2006(as of October)
Assets
Current assets
Cash and cash equivalents	650,138,711	960,020,762	6,972,992,945
Short-term financial instruments	20,000,000	20,000,000	4,000,000,000
Accounts receivable, net of allowance for doubtful accounts	1,797,830,370	1,382,033,740	610,693,115
Inventories, net to valuation losses	1,027,201,065	846,896,211	2,817,163,145
Advances payments	1,629,364,343	2,194,220,225	2,168,130,583
Prepaid expenses	27,732,676	29,166,316	3,712,358
Prepaid taxes	0	474,349,375	35,723,655
Guarantee deposits and other currents assets	58,225,395	303,568,178	1,351,239,094
Total current assets	5,210,492,560	6,210,254,807	17,959,654,895
Property, plant and equipment, including revalued portion, net of accumulated depreciation	16,394,166,579	17,569,410,634	16,612,679,140
Long-term available-for-sale securities	0	765,000,000	571,970,157
Membership	54,730,473	558,770,473	558,770,473
Long-term receivable, net of allowance for doubtful accounts and present value discounts	371,461,990	508,500,000	422,500,000
Guarantee deposits	280,285,000	489,595,000	407,675,909
Intangible assets	229,720,947	651,759,995	226,993,619
Long-term deposits and other assets	494,610,000	122,000,000	422,000,000
Total assets	23,035,467,549	26,875,290,909	37,182,244,193

	2004	2005	2006(as of October)
Assets
Current assets
Cash and cash equivalents	$628,153	$955,711	$7,399,971
Short-term financial instruments	$19,324	$19,910	$4,244,933
Accounts receivable, net of allowance for doubtful accounts	$1,737,034	$1,375,829	$648,088
Inventories, net to valuation losses	$992,465	$843,094	$2,989,667
Advances payments	$1,574,265	$2,184,369	$2,300,892
Prepaid expenses	$26,795	$29,035	$3,940
Prepaid taxes	$0	$472,220	$37,911
Guarantee deposits and other currents assets	$56,256	$302,205	$1,433,980
Total current assets	$5,034,292	$6,182,372	$19,059,382
Property, plant and equipment, including revalued portion, net of accumulated depreciation	$15,839,774	$17,490,528	$17,629,926
Long-term available-for-sale securities	$0	$761,565	$606,994
Membership	$52,880	$556,262	$592,986
Long-term receivable, net of allowance for doubtful accounts and present value discounts	$358,900	$506,217	$448,371
Guarantee deposits	$270,807	$487,397	$432,639
Intangible assets	$221,953	$648,834	$240,893
Long-term deposits and other assets	$477,884	$121,452	$447,840
Total assets	$22,256,490	$26,754,628	$39,459,030

Non-Consolidated Balance Sheets
December 31, 2006 and 2005 and 2004 In of Korean Won, U.S. Dollars in thousands

	2004	2005	2006(as of October)
Liabilities and shareholder's equity
Currents Liabilities
Accounts payable	2,014,782,610	2,358,895,414	2,668,924,929
Short-term borrowings	2,000,000,000	6,265,226,210	11,000,000,000
Advanced received	16,349,237	53,923,100	154,521,110
Accrued expenses	874,378,779	826,199,693	515,069,209
Withholdings	37,096,190	109,118,109	40,689,299
Other current liabilities	440,963,680	0	112,701,354
Total currents liabilities	5,383,570,496	9,613,362,526	14,491,905,901
Long-term debt, net of current portion	0	0	0
Lease deposits received	512,000,000	771,700,000	1,070,000,000
Accrued severance bebefits, net of deposits to the National Pension Fund	344,516,766	483,886,163	496,832,837
Long-term deferred income tax liabilities	625,044,517	587,561,149	587,561,149
Other liabilities	0	0	0
Total Liabilities	6,865,131,779	11,456,509,838	16,646,299,887
Commitments and contingencies
Shareholders' equity
Capital stock
Common stock	350,000,000	350,000,000	350,000,000
Retained earnings	15,820,335,770	15,068,781,071	20,185,944,306
Total shareholders' equity	16,170,335,770	15,418,781,071	20,535,944,306
Total liabilities and shareholders' equity	23,035,467,549	26,875,290,909	37,182,244,193

	2004	2005	2006(as of October)
Liabilities and shareholder's equity
Currents Liabilities
Accounts payable	$1,946,650	$2,348,305	$2,832,352
Short-term borrowings	$1,932,367	$6,237,097	$11,673,565
Advanced received	$15,796	$53,681	$163,983
Accrued expenses	$844,810	$822,490	$546,609
Withholdings	$35,842	$108,628	$43,181
Other current liabilities	$426,052	$0	$119,602
Total currents liabilities	$5,201,517	$9,570,201	$15,379,291
Long-term debt, net of current portion	$0	$0	$0
Lease deposits received	$494,686	$768,235	$1,135,519
Accrued severance bebefits, net of deposits to the National Pension Fund	$332,866	$481,714	$527,255
Long-term deferred income tax liabilities	$603,908	$584,923	$623,539
Other liabilities	$0	$0	$0
Total Liabilities	$6,632,978	$11,405,073	$17,665,605
Commitments and contingencies
Shareholders' equity
Capital stock
Common stock	$338,164	$348,429	$371,432
Retained earnings	$15,285,349	$15,001,126	$21,421,993
Total shareholders' equity	$15,623,513	$15,349,555	$21,793,425
Total liabilities and shareholders' equity	$22,256,490	$26,754,628	$39,459,030