Hyundai 2010 Annual Report Download - page 74

Company providing
guarantee of indebtedness Beneciary companies ￦ $ (Note 2)
Hyundai HYSCO Co., Ltd. Hyundai Hysco Rus LLC ￦44,688 $ 39,238
Jiangsu Hyundai Hysco Steel Process Co., Ltd. 30,750 27,000
Hyundai Dymos Inc. Dymos Czech Republic s.r.o 50,100 43,990
Dymos Lear Automotive India 16,514 14,500
Dymos Powertrain System (Rizhao) Co., Ltd 7,403 6,500
Hyundai WIA Corporation Hyundai Capital Services, Inc. 14,730 12,934
Hyundai Wia Automotive Engine (Shandong) Company 232,336 204,000
Hyundai WIA Automotive Parts 149,982 131,690
Hyundai-Wia Machine America Corp. 87,126 76,500
Hyundai-Kia Machine Europe GmbH 52,976 46,515
Hyundai WIA Motors Dies (Shandong) Company 20,395 17,908
Kia Motors Corporation Hyundai Card Co., Ltd. 34,167 30,000
Kia Motors Manufacturing Georgia, Inc. 854,175 750,000
Kia Motors Slovakia S.r.o. 486,118 426,831
Dong Feng Yueda Kia Motor Co., Ltd. 118,236 103,816
Kia Motors Russian 42,381 37,212
Kia Motor UK Ltd. 7,263 6,377
Kia Automobiles France 3,784 3,323
Hyundai Powertech Hyundai Powertech Manufacturing America Inc. 113,890 100,000
Hyundai Mseat Co., Ltd. Hyundai Dymos Inc. 14,707 12,913
KEFICO Corporation. KEFICO Automotive Systems (Beijing) Co., Ltd. 3,417 3,000
Hyundai Motor America Kia Motors Manufacturing Georgia, Inc. 153,752 135,000
Hyundai Motor India Hyundai Motor India Engineering Private Ltd. 5,268 4,626
(*) The guarantee amounts in foreign currency are translated into Korean Won using the Base Rate announced by Seoul Money Brokerage Services, Ltd. at December 31, 2010.
 
[in millions of KRW]Hyundai Motor Company [in thousands of US$]

December 31, 2010 and 2009
(2) As of December 31, 2010, the outstanding balance of accounts receivable discounted with recourse amounts to ￦435,423 million (US$382,319 thousand),
including discounted overseas accounts receivable translated using the foreign exchange rate at December 31, 2010.
(3) The Company and its subsidiaries offered nancial institutions 2 blank checks and 28 blank promissory notes that were issued by the Company as collateral
for payment guarantees of borrowings.
(4) The Company and Kia Motors Corporation, a domestic subsidiary, uses a customer nancing system related to a long-term instalment sales system and has
provided guarantees of ￦101,262 million (US$88,912 thousand) to the banks concerned as of December 31, 2010. These guarantees also covered by
customer insurance contracts and the Company’s insurance policies.
(5) The Company signed lease nancial agreements with Hyundai Commercial Inc. and Hyundai Capital Services, Inc. to promote sales of buses. According
to the agreements, the Company has a joint responsibility to the guarantee limit of the lease user’s liability stipulated in the agreement. As of December 31,
2010, the amount of guarantee is ￦19,838 million (US$17,419 thousand). In addition, the Company is obliged to pay the lease fee and dispose of leased assets
within certain period in case the lease users are bankrupt or long overdue.:
(6) Ongoing lawsuits
1) As of December 31, 2010, the Company is involved in 49 domestic lawsuits as a defendant, with total claim amount of ￦107,611 million (US$94,487
thousand) and the foreign lawsuits the Company expects that the resolution of pending domestic and foreign lawsuits against the Company will not have any
material effect on its nancial statements. The Company accrues estimated product liabilities expenses and carries the products and completed operations
liability insurance in order to cover potential loss, which may occur due to the lawsuits related to its operation such as product liabilities.
2) 42 signicant lawsuits that some of domestic subsidiaries including Kia Motors Corporation are facing are in progress and the potential payment for damages
according to the result of the lawsuits is up to ￦117,550 million (US$103,214 thousand). Although the outcomes of these lawsuits are not currently predictable,
management believes that the resolution of these matters will likely not have material adverse effect on the operation or nancial position of the company.
3) There exist other ongoing lawsuits related to subsidiaries that are not presented above; however, the Company expects there would not be signicant effects
on its consolidated nancial statements.
(7) As of December 31, 2010, the Company’s consolidated subsidiaries have been provided for payment guarantee by other companies as follows:
￦$ (Note 2)
Company providing Amounts of Translation into
Consolidated Subsidiaries guarantee of indebtedness guarantee U.S. Dollars
Hyundai Dymos Inc. Seoul Guarantee Insurance Company KRW 9,248 $ 8,120
KEFICO Corporation Korea Exchange Bank and others KRW 5,761 5,058
Seoul Guarantee Insurance Company KRW 14 12
Hyundai Rotem Company Machinery Financial Cooperative KRW 712,783 625,852
Korea Defense Industry Association KRW 358,631 314,892
Seoul Guarantee Insurance Company KRW 649,085 569,923
Woori Bank USD 19,069 19
The Export-Import Bank of Korea USD 396,219 396
EUR 446,437 593
CAD 8,033 8
HKD 45,138 6
GBP 489 1
(continued)
[in millions of KRW]Hyundai Motor Company [in thousands of US$]