Hyundai 2002 Annual Report Download - page 43

HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
As of December 31, 2002 and 2001, significant balances related to the transactions between the Company and
consolidated subsidiaries are as follows:
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Subsidiaries Counterpart Subsidiaries 2002 2001 2002 2001
Kia Motors Corporation WIA Corporation 11,593 -
$ 9,658 $ -
Kia Motors Corporation Hyundai Powertech - 119,927 - 99,906
Kia Motors Corporation Kia Motors America
Inc. and etc. 636,022 1,116,256 529,842 929,903
Kia Motors Corporation KIA Canada, Inc 100,956 104,021 84,102 86,655
Kia Motors Corporation Kia Motors
Deutschland GmbH. 211,704 166,049 176,361 138,328
KEFICO Corporation Kia Motors Corporation 7,606 10,077 6,336 8,395
Hyundai Dymos Kia Motors Corporation
(formerly Korea Drive
Train System) 2,413 3,042 2,010 2,534
Hyundai Capital Service Hyundai Powertech
Inc. 16,047 - 13,368 -
Wia Corporation Kia Motors Corporation 93,340 - 77,757 -
Hyundai Powertech Kia Motors Corporation 26,902 27,128 22,411 22,599
Hyundai HYSCO Kia Motors Corporation 16,788 18,929 13,985 15,769
Hyundai Translead(HT, HAOSVT
formerly Hyundai Preci-
Sion America Inc.) 30,245 - 25,196 -
Hyundai Motor Finance HAOSVT
Company - 10,609 - 8,838
22. RELATED PARTY TRANSACTIONS
In 2002, significant transactions with related parties other than the consolidated subsidiaries are as follows :
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Companies Related Party Sales, Purchases, Sales, Purchases,
Revenues Expenses Revenues Expenses
Hyundai Motor Company Hyundai Mobis 304,130 864,982 $ 253,357 $ 720,578
Kia Motors Corporation Hyundai Mobis 861,712 1,101,049 717,854 917,235
In 2001, significant transactions with related parties other than the consolidated subsidiaries are as follows :
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Companies Related Party Sales, Purchases, Sales, Purchases,
Revenues Expenses Revenues Expenses
Hyundai Motor Company Hyundai Mobis 229,478 636,316 $ 191,168 $ 530,087
Kia Motors Corporation Hyundai Mobis 97,792 159,367 81,466 132,762
As of December 31, 2002, significant balances related to the transactions other than the consolidated subsidiaries are as
follows:
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Companies Related Party Receivables Payables Receivables Payables
Hyundai Motor Company Hyundai Mobis 26,497 96,838 $ 22,073 $ 80,671
Kia Motors Corporation Hyundai Mobis 111,345 137,978 92,757 114,943
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
As of December 31, 2001, significant balances related to the transactions other than the consolidated subsidiaries are as
follows:
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Companies Related Party Sales, Purchases, Sales, Purchases,
Revenues Expenses Revenues Expenses
Hyundai Motor Company Hyundai Mobis 9,366 109,228 $ 7,802 $ 90,993
Kia Motors Corporation Hyundai Mobis 74,557 20,789 62,110 17,318
23. COMMITMENTS AND CONTINGENCIES
(1) The Company and its consolidated subsidiaries are contingently liable for guarantees of indebtedness of other
companies including subsidiaries as of December 31, 2002 as follows:
Company providing Company provided Korean won U.S. dollars(Note 2)
guarantee of indebtedness guarantee of indebtedness (in millions) (in thousands)
Hyundai Motor Company Hyundai Merchant Marine 411,444 $ 342,756
Hyundai Motor Finance
Company 204,068 170,000
Hyundai Translead 176,459 147,000
Hyundai Motor India 117,835 98,163
HAOSVT 86,742 72,261
Hyundai Motor Japan Co. 15,193 12,657
Hyundai Motor Amerida 132,706 110,551
Hyundai Motor Poland Sp.Zo.O 10,687 8,903
Hyundai Motor Europe GmbH 56,581 47,135
Other overseas 2,258 1,881
Other domestic 2,401 2,000
1,216,374 $1,013,307
Company providing Company provided Korean won U.S. dollars(Note 2)
guarantee of indebtedness guarantee of indebtedness (in millions) (in thousands)
Kia Motors Corporation Kisan Corporation 2 2
Hyundai Dymos (formerly
Korea Drive Train System) Wia Corporation 112,003 93,305
WIA Corporation Hyundai Dymos (formerly Korea
Drive Train System) 7,831 6,524
Hyundai HYSCO Hyundai Pipe of America, Inc. 6,002 5,000
Hyundai-Huy Hoang Pipe
Company Limited 1,751 1,459
7,753 $6,459
(2) As of December 31, 2002, the outstanding balance of accounts receivable discounted with recourse and transferred by
the Company and its consolidated subsidiaries amounts to 38,051 million ($31,699 thousand) except for short-term
borrowings of 2,479,563 million ($2,065,614 thousand) resulting from elimination of significant balances related to the
transactions between the consolidated subsidiaries.
(3) The Company and its consolidated subsidiaries have used a customer financing system related to a long-
terminstallment sales system and have provided guarantees to related banks amounting to 375,891 million ($313,138
thousand) as of December 31, 2002. These guarantees are all covered by insurance contracts, which specify the
customer and the Company and its subsidiaries as contractor and beneficiary, respectively.
(4) The Company accrues estimated product liabilities expenses and carries the products and completed operations
liability insurance (see Note 6) in order to cover the potential loss, which may occur due to the lawsuits related to its
operation such as product liabilities. The Company expects that the resolution of cases pending against the Company
as of December 31, 2002 will not have any material effect on its financial position.
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