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HYUNDAI MOTOR COMPANY Annual Report 2014
FINANCIAL STATEMENTS / 119118
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
12. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES:
(1) Investments in joint ventures and associates as of December 31, 2014, consist of the following:
In millions of Korean Won
Name of the company
Nature of the
business Location
Ownership
Percentage Book value
Beijing-Hyundai Motor Company (BHMC) (*1) Manufacturing China 50.00% ￦ 2,179,636
Beijing Hyundai Qiche Financing Company (BHAF) (*1,3) Financing China 53.00% 193,624
Hyundai WIA Automotive Engine (Shandong) Company (WAE) Manufacturing China 22.00% 164,090
Hyundai Motor Group China, Ltd. (HMGC) (*1) Investment China 50.00% 158,287
Sichuan Hyundai Motor Company (CHMC) (*1) Manufacturing China 50.00% 155,573
Kia Motors Corporation Manufacturing Korea 33.88% 7,482,972
Hyundai Engineering & Construction Co., Ltd. Construction Korea 20.95% 3,130,886
Hyundai WIA Corporation Manufacturing Korea 25.35% 707,713
Hyundai Powertech Co., Ltd. Manufacturing Korea 37.58% 380,815
Hyundai HYSCO Co., Ltd. Manufacturing Korea 29.37% 302,058
Hyundai Dymos Inc. Manufacturing Korea 47.27% 289,369
HMC Investment Securities Co., Ltd. Securities brokerage Korea 27.49% 225,332
Hyundai Commercial Inc. Financing Korea 50.00% 196,471
Eukor Car Carriers Inc. (*2) Transportation Korea 12.00% 170,132
Others 420,376
￦ 16,157,334
(*1) Each of the joint arrangements in which the Group retains joint control is structured through a separate entity and there are no contractual terms according to which the
parties retain rights to the assets and obligations for the liabilities relating to the joint arrangement or other relevant facts and circumstances. As a result, the Group considers
that the parties that retain joint control in the arrangement have rights to the net assets and classifies the joint arrangements as joint ventures. Also, there are restrictions
which require consent from the director who is designated by the other investors, for certain transactions such as payment of dividend.
(*2) As the Group is considered to be able to exercise significant influence by representation on the board of directors of the investee and other reasons, although the total
ownership percentage is less than 20%, the investment is accounted for using the equity method.
(*3) As of December 31, 2014, the entity is categorized as a joint venture although the Group’s total ownership percentage is a majority share of 53%, because the Group does not
have control over the entity by virtue of an agreement with the other investors.
Investments in joint ventures and associates as of December 31, 2013, consisted of the following:
In millions of Korean Won
Name of the company
Nature of the
business Location
Ownership
Percentage Book value
Beijing-Hyundai Motor Company (BHMC) (*1) Manufacturing China 50.00% ￦ 2,026,337
Beijing Hyundai Qiche Financing Company (BHAF) (*1,3) Financing China 53.00% 88,760
Hyundai WIA Automotive Engine (Shandong) Company (WAE) Manufacturing China 22.00% 129,783
Hyundai Motor Group China, Ltd. (HMGC) (*1) Investment China 50.00% 153,823
Sichuan Hyundai Motor Company (CHMC) (*1) Manufacturing China 50.00% 132,014
Kia Motors Corporation Manufacturing Korea 33.88% 6,748,127
Hyundai Engineering & Construction Co., Ltd. Construction Korea 20.95% 3,050,804
Hyundai WIA Corporation Manufacturing Korea 26.79% 600,284
Hyundai Powertech Co., Ltd. Manufacturing Korea 37.58% 335,227
Hyundai HYSCO Co., Ltd. Manufacturing Korea 29.37% 236,732
Hyundai Dymos Inc. Manufacturing Korea 47.27% 270,535
HMC Investment Securities Co., Ltd. Securities brokerage Korea 26.27% 217,218
Hyundai Commercial Inc. Financing Korea 50.00% 125,806
Eukor Car Carriers Inc. (*2) Transportation Korea 12.00% 148,866
Others(*3) 430,679
￦ 14,694,995
(*1) Each of the joint arrangements in which the Group retained joint control was structured through a separate entity and there were no contractual terms according to which
the parties retained rights to the assets and obligations for the liabilities relating to the joint arrangement or other relevant facts and circumstances. As a result, the Group
considered that the parties that retained joint control in the arrangement had rights to the net assets and classified the joint arrangements as joint ventures. Also, there are
restrictions which require consent from the director who is designated by the other investors, for certain transactions such as payment of dividends.
(*2) As the Group was considered to be able to exercise significant influence by representation on the board of directors of the investee and other reasons, although the total
ownership percentage was less than 20%, the investment was accounted for using the equity method.
(*3) As of December 31, 2013, the entity was categorized as a joint venture although the Group’s total ownership percentage was a majority share of 53%, because the Group did
not have control over the entity by virtue of an agreement with the other investors.