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REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

28. SELLING AND ADMINISTRATIVE EXPENSES
Details of selling and administrative expenses for the years ended December 31, 2009 and 2008 are as follows:
29. INCOME TAXES
(a) The Company was subject to income taxes on taxable income at the following normal tax rates.
(*) All the stock options granted were exercised during current year. The Company does not have any granted stock options as of December
31, 2009.
(b) Changes in treasury stock for the years ended December 31, 2009 and 2008 are summarized as follows:
NOTES TO NONCONSOLIDATED
FINANCIAL STATEMENTS
December 31, 2009 and 2008
In millions of Won 2009 2008
Treasury stock ￦ (2,249) (2,877)
Stock options(*) - 450
￦ (2,249) (2,427)
In millions of Won 2009 2008
Salaries ￦ 504,253 454,646
Provision for retirement and severance benets 101,820 73,167
Other employee benets 71,502 65,456
Sales promotion 407,220 296,308
Travel 18,454 14,488
Communications 8,276 8,294
Utilities 7,757 7,529
Taxes and dues 7,985 10,208
Rent 16,144 14,965
Depreciation 30,345 36,964
Amortization of intangible assets 1,292 1,315
Repairs and maintenance 5,838 5,418
Advertising 100,393 81,393
Freight 53,597 42,682
Supplies and stationery 2,357 1,920
Commissions and fees 113,611 121,173
Education and training 3,824 3,007
Ordinary research and development 262,623 266,635
Overseas marketing 933,431 558,897
Export expenses 580,936 598,620
Warranty expenses 208,579 388,464
Miscellaneous 6,667 4,095
￦ 3,446,904 3,055,644
In thousands of Won, except number of shares 2009 2008
Number of Number of
shares
Amount
shares
Amount
BALANCE AT BEGINNING OF YEAR 480,764 ￦ 2,877 480,764 ￦ 2,877
Exercise of stock warrants (105,048) (628) - -
BALANCE AT END OF YEAR 375,716 ￦ 2,249 480,764 ￦ 2,877
Taxable income Tax rate
2008 and thereafter 2008 2009 2010 and 2011 Thereafter
Up to ￦200 million 12.1% 12.1% 11.0% 11%
Over ￦200 million 27.5% 24.2% 24.2% 22%
In December 2009, the Korean government postponed the reduction of the corporate income tax rate (including resident tax) from 24.2% to
22% until 2012.
(a) Legal reserve
The Korean Commercial Code requires the Company to appropriate as legal reserve an amount equal to at least 10% of cash dividends for each
accounting period until the reserve equals 50% of stated capital. The legal reserve may be used to reduce a decit or transferred to common
stock in connection with a free issue of shares.
(b) Other reserve under tax law
Under the special Tax Treatment Control Law, investment tax credits have been accumulated as the reserve for Technology Development
and the reserve for Research and Human Resource Development. The appropriated amount for their own purpose and the existing balance are
regarded as a voluntary reserve.
27. CAPITAL ADJUSTMENTS
(a) Details of capital adjustments as of December 31, 2009 and 2008 are as follows: