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113
2005 Annual Report
22. DERIVATIVE INSTRUMENTS:
The Com pany had entered into derivative instrum ent contracts (Range forward) to hedge the exposure to variability in expected future cash flow s of forecasted export
sales that is attributable to changes in foreign exchange rate. Derivative instrum ent contracts unsettled as of Decem ber 31, 2005 are sum marized below .
As the above derivative contracts did not qualify the highly effective hedging relationship condition as of Decem ber 31, 2005, the adjustm ent to fair value of ￦3,050
million (US$3,011 thousand) was reflected in current operations.
23. RELATED PARTY TRANSACTIONS :
Significant transactions with affiliated com panies and related balances for the year ended and as of Decem ber 31, 2005 are sum marized below .
Description
Korean w on
(In millions)
Translation into U.S.dollars (Note 2)
(In thousands)
Revenues Expenses Revenues Expenses
Hyundai Motor Company
Hyundai MOBIS
Hyundai Hysco Co., Ltd.
Hyundai Capital Services, Inc.
Hyundai Pow ertek Co., Ltd.
Dymos Inc.
WIA Corporation
Bontec Co., Ltd.
Autoever System s Co., Ltd.
KEFICO Corporation
Asset Managem ent Co., Ltd.
GLOVIS Co., Ltd.
WISCO Co., Ltd.
Donghui Auto Co., Ltd.
Kia Motors Am erica, Inc.
Kia Canada, Inc.
Kia Motors Europe Gm bH
Kia Motors Polska Sp.z.o.o.
EUKOR Car Carriers, Inc.
Dong Feng Yueda-Kia Motors Co., Ltd.
Rotem Com pany
BNG Steel Co., Ltd.
Other
Total
448,155
46,598
38
52,288
2,100
1,674
3,866
11
3,135
41
600
54,969
28
19
3,929,627
367,698
2,572,564
63,135
33
113,295
167
—
27,243
7,687,284
￦
￦
981,996
1,914,575
53,886
108
300,304
134,124
974,813
28,194
47,671
87,411
173,919
176,325
10,958
85,297
189,801
18,971
58,909
1,930
437,366
—
48,719
15,801
36,164
5,777,242
￦
￦
442,404
46,000
38
51,617
2,073
1,653
3,816
11
3,095
40
592
54,264
28
19
3,879,197
362,979
2,539,550
62,325
33
111,841
165
—
26,892
7,588,632
$
$
969,394
1,890,005
53,194
107
296,450
132,403
962,303
27,832
47,059
86,289
171,687
174,062
10,817
84,202
187,365
18,728
58,153
1,905
431,753
0
48,094
15,598
35,702
5,703,102
$
$
Korean w on
(In millions)
Date of Contract Date of Settlement
Fair value amount
Contract amounts
(In thousands)
Contracting parties
Translation into U.S.dollars
(Note 2) (In thousands)
Korea Developm ent Bank
and others
EUR 180,000 Decem ber 6, 2005
~ Decem ber 9, 2005
March 6, 2006
~ Decem ber 13, 2006
￦3,050 $3,011