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57
2000 Annual Report •Hyundai-Motor Company
NOTES TO FINANCIAL STATEMENTS
December 31, 2000 and 1999
Hyundai Merchant Marine
Hyundai MOBIS (formerly Hyundai Precision & Ind. Co., Ltd.)
Overseas subsidiaries
Other
$ 448,117
10,075
293,316
7,586
$ 759,094
￦564,493
12,692
369,490
9,556
￦
￦956,231
U.S. dollars (Note 2)
(in thousands)
Korean won
(in millions)
12. Commitments and Contingent liabilities
(1) The Company is contingently liable for guarantees of indebtedness, primarily for the following affiliates
(including foreign subsidiaries), as of December 31, 2000.
(2) Bank deposits[￦7,900 million ($6,271 thousand)], investment securities[￦206,784 million ($164,153 thousand), at cost],
5 blank checks, 57 blank promissory notes, 3 checks amounting to ￦15,139 million ($12,018 thousand), 1 promissory
notes amounting to ￦73,840 million ($58,618 thousand) and property, plant and equipment are pledged as collateral for
short-term borrowings, the local currency and foreign currency loans and other payables (see Note 6).
(3) The Company uses a customer financing system related to a long-term installment sales contract and has provided
guarantees of ￦1,081,275 million ($858,359 thousand) to the banks concerned as of December 31, 2000. These
guarantees are all covered by insurance contracts, which regulate a customer and the Company as a contractor and a
beneficiary, respectively.
(4) At December 31, 2000, the outstanding balance of accounts receivable discounted with recourse amounts to ￦971,025
million ($770,838 thousand), including discounted overseas accounts receivable translated using the foreign exchange rate
as of December 31, 2000.
(5) In connection with the merger of Hyundai MOBIS (formerly Hyundai Precision & Ind. Co., Ltd. (HPI)) with the Company (see
Note 25), under the Korean Commercial Code, the Company becomes liable for the payment of the full amount of liabilities
previously owed by HPI. As a result, the Company is deemed to have assumed additional contingent liabilities of
￦299,780 million ($237,977 thousand)as of December 31, 2000.
(6) The Company, together with the previous major shareholders of Hyundai International Merchant Bank, agreed to reimburse
the agricultural and fishery special tax paid by Cho Hung Bank in connection with the taxable income from the liquidation of
Hyundai International Merchant Bank which arose from the merger of Hyundai International Merchant Bank, Kangwon Bank
and Cho Hung Bank in 1999. The total reimbursement unpaid as of December 31, 2000 is ￦36,192 million ($28,731
thousand) and the share of the Company is ￦3,480 million ($2,763 thousand). There is a law suit pending against this tax
imposition and the Company expects that the resolution of the case will not have any material effect on its financial position.
13. Capital Stock
Capital stock as of December 31, 2000 consists of the following:
Common stock
Preferred stock
$ 909,298
262,770
$ 1,172,068
U.S. dollars (Note 2)
(in thousands)
￦1,145,443
331,011
￦
￦1,476,454
Korean won
(in millions)
￦5,000
5,000
Par value
229,088,702 shares
66,202,146 shares
Issued
450,000,000 shares
150,000,000 shares
Authorized