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Report of Independent Public Accountants
▶English Translation of a Report Originally Issued in Korean
46 Kia Motors Corporation
We have audited the accompanying non-consolidated balance sheets of Kia Motors Corporation as of December 31, 2003 and
2002, and the related non-consolidated statements of income, appropriations of retained earnings and cash flows for the
years then ended, all expressed in Korean won.
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kia
Motors Corporation as of December 31, 2003 and 2002, and the results of its operations, changes in its retained earnings and
its cash flows for the years then ended in conformity with financial accounting standards in the Republic of Korea (see Note 2).
The translated amounts in the accompanying financial statements have been translated into U.S. dollars, solely for the
convenience of the reader, on the basis set forth in Note 2.
As explained in Note 2, the Company implemented the Statements of Korea Accounting Standards (“SKAS”) No. 2-“Interim
Financial Reporting”, No. 3 -”Intangible Assets”, No. 4 -”Revenue Recognition”, No. 5 -”Tangible Assets”, No. 8 -
“Investments in Securities” and No. 9 -“Convertible Securities” in preparing its 2003 financial statements, which are effective
from January 1, 2003. For comparative purposes, certain accounts in the 2002 financial statements were reclassified.
Also, the statement of income for the year ended December 31, 2002 was revised in conformity with SKAS No. 4. These
reclassification and revision do not affect the net assets and net income but resulted in the decrease of sales and cost of sales
by ￦1,898,338 million (US$1,584,854 thousand) compared with the results based on the previous method.
As discussed in Note 14, the Company completed the stock retirement of 10 million treasury stock on July 2, 2003, which had
been acquired for such retirement purpose under the resolution of the Board of Directors on May 9, 2003. As of December 31,
2003, remaining shares of common stock are 359,730,455 shares.
Accounting principles and auditing standards and their application in practice vary among countries. The accompanying non-
consolidated financial statements are not intended to present the financial position, results of operations and cash flows in
To the Shareholders and Board of Directors of
Kia M otors Corporation: