Kia 2004 Annual Report Download - page 83

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14. CAPITAL STOCK:
Capital stock as of Decem ber 31, 2004 and 2003 consist of the follow ing:
Also, under the court-approved reorganization plan, on March 30, 1999, ￦5,482,181 million (US$5,252,137 thousand) of the Com pany s debt was forgiven,
including its guaranteed obligations, and an additional ￦1,799,999 million (US$1,724,467 thousand) of its liabilities was converted into capital stock for which
119,999,932 new shares were issued at ￦15,000 per share.
On December 7, 2000, ￦714 million (US$684 thousand) of a creditor s claims in dispute was additionally determined by the court as the Company s reorganization
claim and converted into capital stock for which 142,953 new shares were issued.
In accordance with the take-over contract with the Hyundai Motor Com pany, representing the Hyundai Motor Consortium, effective December 1, 1998, the
Com pany issued new common stock of 172,431,118 shares amounting to ￦938,656 million (US$899,268 thousand) and the Hyundai Motor Consortium acquired
153,000,000 shares amounting to ￦841,500 million (US$806,189 thousand) for 51 percent as of March 30, 1999.
Financial institutions, with loans to the Company that had been forgiven or converted into the Company s common stock, and Hyundai Motor Consortium were
granted rights to subscribe to the registered non-voting preferred stock with a par value of ￦5,000. On December 28, 1998, the financial institutions acquired rights
equal to 10 percent of the forgiven debt and liabilities converted into new capital stock. Also, on December 28, 1998, the Hyundai Motor Consortium acquired rights
up to the extent that the Consortium shall ow n up to 51 percent of all the additional preferred shares to be issued. These pre-emptive rights can be exercised at
once or several times in the fifth or tenth year from December 28, 1999, the date the court finally approved the reorganization plan and the Com pany shall pay the
dividend equal to at least 2 percent for the preferred shares to be issued for the exercise of the rights. In 2003, the fifth year from the Decem ber 28, 1999, no pre-
emptive right was exercised. In addition, the Asia Motors-invested financial institutions and Hyundai Motor Consortium were granted pre-emptive rights under the
same conditions as described above.
The Company completed stock retirement of 12.5 million shares of treasury stock on May 28, 2004, which had been acquired for ￦136,700 million (US$130,964
thousand) for such retirement purposes based on the decision of the Board of Directors on March 19, 2004 and remaining shares of common stock are 347,230,455
shares. Also, the Com pany completed stock retirement of 10 million shares treasury stock on July 2, 2003, which had been acquired for such retirem ent purposes
based on the decision of the Board of Directors on May 9, 2003. The rem aining shares of comm on stock are reduced from 359,730,455 shares to 347,230,455 shares.
Due to these stock retirem ents, the total face value of outstanding stock of ￦1,736,152 million (US$1,663,299 thousand) differs from the capital stock am ount.
15. CAPITAL SURPLUS:
Capital surplus as of December 31, 2004 and 2003 consist of the following:
As a result of the capital reduction on February 2, 1999, the Com pany recognized the gain in capital surplus amounting to ￦340,848 million (US$326,545
thousand). In 2001, the Company accounted for the loss from the stock retirement am ounting to ￦220,989 million (US$211,716 thousand) as a charged against the
gain on capital reduction.
83
KIA Motors_2004 Annual Report
820,000,000 shares
820,000,000 shares
347,230,455 shares
359,730,455 shares
1,848,652
1,848,652
￦
￦
5,000
5,000
￦
￦
1,771,079
1,771,079
＄
＄
Authorized Issued Par value Korean won
(in millions)
U.S. dollars (Note 2)
(in thousands)
2004
2003
1,580,065
119,859
2,031
1,701,955
￦
￦
2004 2003 2004 2003
1,580,065
119,859
1,032
1,700,956
￦
￦
1,513,762
114,829
1,946
1,630,537
＄
＄
1,513,762
114,829
989
1,629,580
＄
＄
Paid-in capital in excess of par value
Gain on capital reduction
Other
Korean won
(In millions) U.S. dollars (Note 2)
(In thousands)