Kia 2003 Annual Report Download - page 74

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NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
▶DECEMBER 31, 2003 AND 2002
74 Kia Motors Corporation
Foreign currency loans as of December 31, 2003 consist of the following :
In accordance with the court-approved reorganization plan, the above reorganization claims, with the exception of current maturities, will be
repaid over seven years beginning 2002 to 2008, after a 3-year grace period. The applicable interest rate is variable depending on the 3-year
non-guaranteed bond circulating earnings rate.
In addition to the pledged assets explained in Note 4, 5 and 7, 87 blank checks, 165 blank promissory notes, 2 promissory notes totalling
￦1,820 million (US$1,519 thousand) are pledged as collateral for the short-term borrowings and the long-term local currency and foreign
currency loans.
The maturities of long-term debt (excluding debentures) as of December 31, 2003 are as follows :
13. COM M ITM ENTS AND CONTINGENCIES :
(1) At December 31, 2003, the outstanding balance of installment accounts receivable and notes receivable discounted with recourse amounts
to ￦77,936 million (US$65,066 thousand) and the outstanding balance of accounts receivable from export sales discounted with recourse
amounts to ￦1,229,074 million (US$1,026,109 thousand).
(2) The Company uses a customer financing system related to a long-term installment sales system and has provided guarantees of ￦48,272
million (US$40,301 thousand) to the banks concerned as of December 31, 2003. These guarantees are all covered by insurance contracts, which
regulate a customer and the Company as a contractor and a beneficiary, respectively.
(3) The Company is a defendant to seven lawsuits for compensation of losses or damages amounting to ￦13,383 million (US$11,173 thousand)
as of December 31, 2003. The outcome of these lawsuits is not currently determinable. In addition, the Company is carrying certain lawsuits
2003 2002 2003 2002
Korean won (in millions) U.S. dollars (Note 2) (in thousands)
Reorganization claims:
Korea Development Bank
Bankers Trust Company
Woori Bank
First Citicorp Leasing Inc.
Korea Non-Bank Lease Financing
Citibank
Korea Development Leasing Corp.
Chohung Capital
Other
Sub total
Less : Current maturities
37,132
32,665
12,445
8,965
8,415
6,617
3,472
3,160
8,725
121,596
(24,317)
97,279
44,655
39,283
14,416
10,781
10,119
7,958
4,175
3,800
13,424
148,611
(24,767)
123,844
31,000
27,271
10,390
7,485
7,025
5,524
2,899
2,638
7,284
101,516
(20,300)
81,216
37,281
32,796
12,035
9,001
8,448
6,644
3,486
3,172
11,208
124,071
(20,678)
103,393
￦
￦
￦
￦
＄
＄
＄
＄
Local currency loansYear
Korean won (in millions)
U.S. dollars (Note 2)
(in thousands)
2005
2006
2007
Thereafter
88,994
89,720
88,586
101,924
369,224
￦
￦
24,317
24,317
24,317
24,328
97,279
￦
￦
113,311
114,037
112,903
126,252
466,503
￦
￦
94,600
95,206
94,259
105,402
389,467
＄
＄
Foreign currency loans Total Total