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G
G
G
HYUN
DAI MOT
OR C
OMPAN
Y
AND ITS SUBSIDIARIES
CONSOLIDATED
FINANCIAL STAT
EMENTS
AS OF AND FOR T
HE YEARS END
ED
DECEMBER 31
, 2021 AND 20
20
ATT
ACHMENT: INDEPENDENT
AUDITORS’ RE
PORT
HYUN
DAI MOT
OR CO
MPANY
Contents
INDEPENDENT AUDITORS’ REPORT ---------------
--------------
--------
------------
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--- 1
CONSOLIDATED FINANCIAL STAT
EMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION -----------------
------------
------
6
CONSOLIDATED STATEMENTS OF INCOME -----------------
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--------
----------
----------
-
8
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ------------
--------------
-
9
CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY ---------------
--------
-------
------
10
CONSOLIDATED STATEMENTS OF CASH FLOWS ------
------------
--------
---------
-------
-----
12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -------------------
--------------14
1
52,
T
eheran-ro, Gangnam-gu,
Seoul 06236
(Y
eoksam-dong, Gangnam
Finance Center 27th
Floor)
Republic of Korea
Indep
endent Audit
ors’
Report
To the Boa
rd of Dir
ectors
and Shar
eholder
s
Hyundai Motor
Compa
ny:
Report on the Audit of the Consolida
ted Financial Statements
Opinion
We have aud
ited the c
onsol
idated financ
ial s
tatement
s of Hyunda
i Motor
Company
and its
subsid
iaries
(“the Group”), w
hich comp
rise the c
onsolida
ted stat
ements of
financial pos
ition
as of Dec
ember 31,
2021 and 2
020, the c
onsol
idated s
tatement
s of incom
e, compre
hensive
income,
changes
in equit
y an
d
cash f
lows for t
he year
s th
en ended, a
nd not
es, com
prising s
ignif
icant a
ccount
ing pol
icies an
d other
explana
tory inf
ormat
ion.
In our opin
ion, the a
ccompa
nying conso
lidated f
inanc
ial sta
tements pr
esent fairly
, in all ma
teria
l
respect
s, the cons
olidated
financia
l posit
ion of th
e Group a
s of Decem
ber 3
1, 202
1 and 2020
, and it
s
consoli
dated fina
ncia
l perfor
mance a
nd its c
onsolid
ated ca
sh flows f
or the year
s then ende
d in
acc
ordance wit
h Korean I
nt
ernationa
l Fina
ncial
Report
ing Sta
ndards (“K
-IFRS
”).
Basis for
Opinion
We conduc
ted our
audit
s in
accor
dance with K
orea
n Sta
ndards
on Audit
ing (KS
As). O
ur respons
ibilit
ies
under those s
tandar
ds are f
urther des
cribed in the
Auditors
’ Respons
ibilities
for the Aud
it of the
Consoli
dated Fina
ncial St
atement
s sec
tion of our
report
. We ar
e independ
ent of
the Gro
up in
acc
ordance wit
h the
ethica
l req
uirement
s that
are re
lev
ant to our
aud
it of th
e cons
olida
ted f
inancia
l
statemen
ts in
Republ
ic of Korea,
and we h
ave fulfil
led
our othe
r ethi
cal resp
onsibi
liti
es in accord
ance
with th
ese requir
ements
. We bel
ieve t
hat the a
udit
evidenc
e we ha
ve obtai
ned
is suff
icient a
nd
appropria
te to
provide
a basis
for our op
inion.
Key Audit Ma
tters
Key audit
matt
ers ar
e those mat
ters tha
t, in o
ur profe
ssiona
l judgment
, wer
e of
most sign
ificanc
e in
our aud
it of th
e co
nsolidat
ed financ
ial st
atements
as of
and f
or the y
ear
ended
December
31, 202
1.
These ma
tters
were addr
ess
ed in the
context
of our a
udit
of the
conso
lidated f
inancia
l stat
ements as
a whole, a
nd in f
orming
our opinio
n there
on, and
we do
not provi
de a separ
ate opin
ion o
n these ma
tters
1)
Valuat
ion of warra
nty provisions
As descr
ibed in Not
e 2 (20)
and Note 1
7 to th
e conso
lidated f
inancial s
tatement
s, t
he Group rec
ognize
d
warra
nty prov
ision in the a
mount
of
୸
9,
048,185 mi
llion a
s of Decem
ber 31, 20
21.
The Group pr
ovides c
ustomers
with free wa
rranty
servic
es for gua
ranteed per
iod and fr
ee repa
ir
servic
es in the
event of
recall a
nd ca
mpaign.
The Grou
p aggregat
es sales
volume
by v
ehicle mo
del an
d
estimat
es warra
nty expens
es whic
h are
expected
to b
e incur
red bas
ed on his
toric
al data
of the a
ctual
warra
nty cost
s. Warran
ty provisions
are meas
ured a
t the present
value bas
ed on the exp
ected
expendit
ure of wa
rrant
y cost
s and disc
ount r
ates. In or
der to mea
sure a
nd r
ecognize wa
rrant
y
provisions
, manag
ement appl
ies ass
umptions to es
timat
e expected war
ranty
cost per unit by
vehicle
model an
d expe
cted nu
mber of rep
air cases an
d applie
s disco
unt rates to
measure th
e presen
t value
of provis
ions. Ma
nagemen
t uses
historic
al data
of the ac
tual wa
rrant
y costs
to estimate ex
pected
warranty cost p
er un
it b
y vehi
cle model
and e
xpected n
umber o
f repair case
s. We
determi
ned the
valuat
ion of warra
nty prov
ision as
a key a
udit matt
er becaus
e errors
in aggrega
tion of a
ctual wa
rranty
costs and sal
es vol
ume by veh
icl
e model
s or in assumpt
ion
s used to esti
mate future w
arranty
expenses
and disc
ount rat
es woul
d have a s
ignific
ant im
pact on t
he conso
lidated
financ
ial sta
tements.
The prima
ry proc
edures we
perform
ed to addr
ess this
key
audit mat
ter inclu
ded the fol
lowing:
-
Understa
nding of th
e proc
ess t
o measure a
nd recog
nize warr
anty pr
ovisions a
nd testin
g of
relevan
t contro
ls.
-
Testing of
compl
eteness a
nd ac
curac
y of vehic
les sol
d used f
or est
imation t
hrough
inspecti
on
of relat
ed docume
nts.
-
Evalua
ting reasona
blenes
s of as
sumptions
appli
ed for ex
pected
warrant
y cost
per un
it by
vehicle m
odel by c
omparing wa
rra
nty expens
es incurr
ed in the curr
ent perio
d t
o expected
warra
nty expens
es in the
prior per
iod.
-
Evalu
ating
reason
ablene
ss of assumpti
ons appli
ed fo
r expected
number o
f repair cases base
d
on hi
storical
data an
alysis.
-
Testing of a
ccura
cy of wa
rranty prov
ision bala
nce by in
spect
ing document
s relat
ed to his
torica
l
data of
the act
ual warr
anty expens
es on a s
ample ba
sis and t
esting
of reca
lculatio
n.
-
Testing of
appropr
iatenes
s of dis
count ra
tes by c
ompar
ing to ext
ernal s
ources of
inf
ormation.
2)
Va
luation
of financ
ial s
ervices
receiva
bles
As descr
ibed
in Note
2.(8)
and Note
14 to
the c
onsoli
dated fi
nancial s
tatement
s, t
he Group
recog
nized
financia
l serv
ices rec
eivabl
es, net a
nd loss allowa
nce in t
he amount
of
୸
81,029,
132 millio
n and
୸
1,551,987 milli
on as of December 31, 2021, res
pectiv
ely.
The Grou
p reco
gnizes
allo
wance for
cre
dit loss
using
the ex
pect
ed cred
it los
s (ECL)
model
for f
inancia
l
servic
es rec
eivables
in ac
corda
nce with K
-IFRS 1
109 ‘fina
ncial i
nstr
uments’. Judgm
ent
of the
management
is r
equired
to det
ermine
wheth
er the
receiv
able ha
s ex
perienced
a s
ignific
ant
increas
e in
credit risk and other assumptions ap
plied to the ECL model, includin
g credit rating
and macroeconomic
variables. In addition, the G
roup us
es historical transacti
on data su
ch as delinquen
cy days, bankruptcy
and collec
tion in
determ
ining as
sumptions us
ed in t
he ECL mo
del. Si
nce the
impact
on the conso
lidated
financia
l stat
ements du
e to errors
in the a
ssumptio
ns appli
ed to t
he ECL mo
del is sign
ifica
nt, w
e
determi
ned that val
uati
on of fin
ancial
service
s recei
vables i
s a key audi
t matter.
The prima
ry proc
edures we
perform
ed to addr
ess this
key
audit mat
ter inclu
ded the fol
lowing:
-
Assessing whether the Group’s acc
ounting policies comply with
the requirem
ents in K-IFRS
1109
‘Financial
Instrumen
ts’.
-
Understa
nding of the pr
oces
s over t
he measurement
of credit
loss allowanc
e on financia
l
serv
ices rec
eivables
and te
sting of r
eleva
nt controls.
-
On a sampl
e basi
s, assessi
n
g the cre
dit rati
ng and
classi
ficatio
n of cre
dit q
uality i
nclu
ding
the
identific
ation
of signif
icant
increa
se cr
edit risk,
through
inspect
ion of re
lated
docum
ents.
-
On a sam
ple basis
, chec
king t
he so
urce da
ta for
pro
babilit
y of def
ault
and l
oss giv
en defa
ult
and test
ing of ap
propriat
eness of
calcula
tion met
hods used f
or t
he estima
tion throu
gh
recalcul
ation.
Other m
atter
The proc
edures
and pr
actic
es utilized
in th
e Re
public
of Korea
to a
udit su
ch
consoli
dated f
inancia
l
stat
ements ma
y differ f
rom those ge
neral
ly acc
epted and app
lied in ot
her count
rie
s.
Responsibiliti
es of Managemen
t and Those Ch
arg
ed with Gove
rnance
for th
e Consolidated
Financial St
atemen
ts
Manageme
nt is res
ponsibl
e for the pr
eparat
ion and fa
ir present
ation of t
he consoli
dated f
inancia
l
stat
ements in ac
cordanc
e with K
-IFRS, a
nd for
such int
erna
l control a
s mana
gement
determines
is
necessary to
enabl
e the preparation of co
nsolid
ated fin
ancial state
ments th
at are free from mate
rial
missta
tement, wheth
er due to f
raud or err
or.
In preparin
g the co
nsolida
ted financ
ial sta
tements,
management
is respo
nsibl
e for as
sessing t
he
Group’s ab
ility
to conti
nue as
a going co
ncern,
disclosi
ng, as
applic
able, ma
tters r
elated t
o goin
g concern
and usi
ng the
going c
oncer
n basis of
acc
ounting u
nless
management
either
int
ends to l
iquidat
e th
e
Group or to
ceas
e operatio
ns, or has
no rea
listic alter
nat
ive but to d
o so.
Those cha
rged
with gover
nanc
e are res
ponsibl
e for ov
erseein
g the Grou
p’s fi
nancial r
eport
ing proc
ess.
Manageme
nt is res
ponsib
le for pr
esenting a
nd mar
king up t
he conso
lidated fi
nanc
ial st
atements in
complianc
e with the r
equir
ements set
out in the Dele
gated Reg
ulati
on 2019/815
on Europea
n Sing
le
Electronic
Form
at (“ESE
F Regula
tion”).
Auditors’ Responsibilities
for
the Audit of the
Cons
olidated Financial
Statements
Our ob
jectives
are
to obta
in reas
onable a
ssura
nce abo
ut whet
her th
e cons
olidat
ed f
inancial
stat
ements
as a whole a
re free f
rom materia
l misstat
ement, wheth
er due to fr
aud or error
, and t
o issue an a
uditors’
report t
hat inclu
des o
ur opin
ion. R
easonable
ass
urance is
a high
level of a
ssur
ance, but is
not a
guarant
ee that an au
dit conducted
in accordance
with KSAs will
always detect a material mi
sstatemen
t
when it ex
ists. Mis
stat
ements
can ar
ise from fra
ud or error
and are c
onsidered m
ateria
l if, indivi
dually
or in t
he aggrega
te, th
ey could r
easona
bly be
expected t
o infl
uence the
econo
mic decis
ions of
user
s
taken on t
he bas
is of thes
e consol
idated f
inancia
l stat
ements.
As part of an
audit in accordan
ce wi
th KSAs, w
e exercise
professi
onal judgment and
maintain
profess
ional skept
icis
m through
out the
audit.
We also
:
x
Identify and assess the
risks of
material misstatement of the
consolidated fina
ncial statements,
whether du
e to fra
ud or er
ror, des
ign an
d perfor
m audit pr
ocedur
es respo
nsive to
those ris
ks,
and obt
ain a
udit ev
idence
tha
t is suf
fici
ent and
approp
riat
e to prov
ide a
basis
for
our o
pinion.
The risk of
not d
etecting
a mater
ial missta
tement res
ultin
g from fr
aud is hi
gher t
han for one
resultin
g
from err
or, as
fra
ud may inv
olve c
ollus
ion, forger
y, int
entio
nal omis
sions,
misrepres
entations
, or the override of inter
nal
contro
l.
x
Obtain a
n underst
anding
of interna
l contro
l relevan
t to t
he audit in ord
er to des
ign audit
procedures
that a
re approp
riate in
the c
ircumsta
nces, but
not for
the pur
pose
of expr
essing an
opinion o
n the ef
fectiv
eness
of the Grou
p’s int
ernal
c
ontr
ol.
x
Evalua
te the
appropr
iaten
ess of
a
ccounting
pol
icies
used
in
the pr
epar
ation
of the
c
onsolidat
ed
financia
l stat
ements and t
he rea
sonable
ness of a
ccounting
estima
tes and r
elated dis
closur
es
made by managem
ent.
x
Conclude
on the
appropr
iatenes
s of mana
gement’s
use of t
he going c
once
rn basis
of
account
ing and, ba
sed on t
he aud
it evidenc
e obta
ined, whet
her a ma
terial u
ncerta
inty exis
ts
related t
o eve
nts
or cond
itions
tha
t may c
ast signif
icant
doubt
on the
Group’s
abi
lity
to cont
inue
as a going c
oncern
. If we c
onclude tha
t a ma
terial unc
ertaint
y exist
s, we are r
equired t
o draw
attent
ion in our
audit
ors’
report t
o the re
lated
dis
closures
in the c
onsol
idat
ed financia
l
stat
ements or, if
such d
iscl
osures a
re inadeq
uate, to
modify
our
opinion.
Our c
onclusio
ns ar
e
based on the a
udit ev
idence obt
ained up to t
he dat
e of our a
uditors’ r
eport. Ho
wever, fut
ure
events or
conditio
ns may
caus
e the Group t
o cease t
o continu
e as a
going
conc
ern.
x
Evalua
te the over
all pres
enta
tion, struc
ture and
content
of the c
onsol
idated fi
nancia
l
stat
ements, inclu
ding the
disclos
ures, a
nd wheth
er the cons
olida
ted fina
ncial
stat
ements
represe
nt the
underlyi
ng transactio
ns and
events i
n
a manner th
at achieves fair
presentation
.
x
Obta
in suffic
ient appr
opria
te a
udit ev
idenc
e rega
rding
the fi
nancia
l infor
mati
on of t
he entit
ies
or busi
ness ac
tivities
with
in the
Group t
o expr
ess a
n opin
ion o
n the c
onsoli
dated fina
ncia
l
stat
ements. We ar
e respons
ible for t
he direc
tion, s
upervis
ion and
performa
nce of t
he group
audit. W
e remain
solely
res
ponsible
for our a
udit
opin
ion.
We communic
ate wit
h those c
harged w
ith gover
nance rega
rding, am
ong oth
er mat
ters, t
he planned
scope a
nd tim
ing of t
he a
udit an
d sign
ificant
audit
findings
, incl
uding
any sig
nific
ant defic
iencies
in
intern
al contro
l that we id
entify du
ring our aud
it.
We also prov
ide those c
harged w
ith governa
nce with a
st
atement tha
t we have
complied with rel
evant
ethical r
equireme
nts regar
ding indepen
dence,
and communica
te with th
em all rela
tionships
and other
matter
s that
may rea
sonably be
thought
to
bear on
our in
depend
ence, and
whe
re appl
icable, r
elat
ed
safegua
rds.
From the matt
ers communic
ated with thos
e charge
d with g
overnanc
e, we deter
mine thos
e matters
that wer
e of most s
ignifica
nce in t
he audit
of the c
onsoli
dated financ
ial st
atements
of the c
urrent per
iod
and are t
herefor
e the k
ey audit
matter
s. We d
escribe t
hese ma
tters in
our a
uditor
s’ report u
nless
law
or regulat
ion preclu
des pu
blic disc
losur
e about the ma
tter
or when, in ext
remely r
are cir
cumstanc
es,
we determ
ine that a ma
tter should not b
e communica
ted in our r
eport bec
ause the a
dverse
conseque
nces of do
ing s
o would r
easona
bly be
expec
ted to out
weigh th
e pub
lic inter
est be
nefits of
such commu
nicatio
n.
Our res
ponsibil
ity is
to ass
ess whether t
he conso
lidate
d financia
l stat
ements hav
e been prepa
red in al
l
materia
l respects
with th
e requ
irements la
id dow
n in the E
SEF Reg
ulatio
n.
Report on Other Legal and Regulatory Requireme
nts
We have chec
ked th
e complia
nce of
the conso
lidated f
inancial s
tatements
of the Gr
oup as
at
December 3
1, 2021 wit
h relev
ant requ
irement
s set out
in the ESEF
Regula
tion t
hat ar
e applica
ble to
financia
l stat
ements.
For the Gro
up it r
elates t
o:
x
Consoli
dated fina
ncial s
tatement
s prepar
ed in a v
alid X
HTML fo
rmat;
x
The XBR
L markup of t
he cons
olidated f
inanc
ial sta
tement
s usin
g the core
taxonomy
and th
e
common ru
les on ma
rkups s
pecified
in in t
he ESEF
Regulat
ion
In our o
pinion,
the
consolid
ated f
inancia
l sta
tements
of t
he Group
as at
Decem
ber 31,
2021,
ident
ified
as “9884
004RQX8P
RBXQ
8S60-2021
-12-31.z
ip”, hav
e been
prepared
, in al
l mat
erial respec
ts, in
compliance with the requirements laid down in the ESEF Regulation.
The engagement
partner on the audit resulting
in this independent auditors’ report
is Sang-Min Nam.
Seoul, Korea
March 8,
2022, except with respect to
the Report on Other Legal and Regulatory Requirements
section of our report above, as of April 22,
2022.
This rep
ort is ef
fectiv
e as of t
he audit rep
ort dat
e. Certai
n subsequ
ent events
or circ
umstanc
es, which
may occ
ur betwee
n the au
dit rep
ort da
te and t
he tim
e of read
ing this
repor
t, could
have a
materia
l
impact on t
he accompa
nying c
onsolidat
ed financ
ial sta
tements a
nd notes ther
eto. Ac
cordingly
, the
readers
of the au
dit re
port s
hould under
stand t
hat the
above aud
it rep
ort ha
s not
been upda
ted to
reflect t
he impac
t of suc
h subsequ
ent eve
nts or cir
cumsta
nces, if a
ny.
ٻ
ٻ
ٻ
ٻ
ڐٻ
ٻ
HYUNDAI MOT
OR COMPANY
AND ITS S
UBSIDIARI
ES
CONSO
LIDATE
D FINA
NCIAL STA
TEME
NTS
AS OF AND FOR THE YEARS EN
DED
DECEMBER 31,
2021 AND 2020
The accompanying conso
lidated fi
nancial statem
ents, including all footnote disclosures, were
prepared by, and are the
responsibility of, the Company.
Chang, Jae Hoon
Chief Execu
tive Offic
er
HYUNDAI MOTOR CO
MPANY
Main Office Address: (R
oad Name Addr
ess) 12, Heolleung-r
o, Seo
cho-gu, Seoul
(Phone Number) 02-3464-111
4
ٻ
ٻ
ٻ
ٻ
ڑٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF FINAN
CIAL POSITION
AS OF DECEMBER 31, 2021
AND DECEMBER 31, 2020
ASSETS
NOTES
December 31, 2021
December 31, 2020
(In millions of Korean Won)
Current assets:
Cash and cas
h equivalents
20
୸
12,795,554
୸
9,862,136
Short-term fi
nancial instrume
nts
20
6,949,333
7,219,695
Other financial
asset
s
5,20
12,396,646
12,897,108
Trade notes and accounts
receivable
3,20
3,147,296
3,283,972
Other receivables
4,20
4,220,970
4,016,972
Inventorie
s
6
11,645,641
11,333,734
Current tax as
sets
47,346
138,848
Financial services receivables
14,20
35,252,606
32,596,052
Non-current as
sets cl
assified as
held for sale
8
28,121
304,469
Other ass
ets
7,20
2,081,853
2,033,371
Total current as
sets
88,565,366
83,686,357
Non-current assets
:
Long-term fi
nancia
l inst
ruments
20
306,410
61,859
Other financial
asset
s
5,20
3,539,286
2,779,227
Long-term trade
notes and accounts recei
vable
3,20
137,157
124,269
Other receivables
4,20
741,168
702,341
Property, pl
ant and equi
pment
9,40
35,543,083
34,092,229
Investment pr
operty
10,40
156,656
160,967
Intangible as
sets
11,40
5,846,986
5,677,567
Investments
in joint ve
ntures a
nd associates
13
22,429,117
19,925,260
Net defined be
nefit assets
35
219,721
-
Deferred tax ass
ets
34
2,224,833
2,847,454
Financial services receivables
14,20
45,776,526
37,069,158
Investments
in operat
ing lease
s
15
26,327,996
20,501,691
Right-of-us
e asset
s
12
940,826
836,324
Other ass
ets
7,20
1,191,284
879,509
Total non
-current as
sets
145,381,049
125,657,855
Total assets
୸
233,946,415
୸
209,344,212
(Continued)
ٻ
ٻ
ٻ
ٻ
ڒٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF FINAN
CIAL POSITION
AS OF DECEMBER 31, 2021
AND DECEMBER 31, 2020
LIABILITIES AND EQUITY
NOTES
December 31, 20
21
December 31, 20
20
(In millions of Korean Won)
Current liabilities:
Trade notes and acco
unts payable
20
୸
9,155,255
୸
8,793,179
Other payables
20,39
6,335,645
6,123,714
Short-term b
orrowings
16,20,40
13,087,836
13,780,670
Current porti
on of long-term d
ebt and debentures
16,20,40
20,578,902
16,104,005
Income tax paya
ble
751,929
548,733
Provisi
ons
17
6,664,647
6,360,770
Other financial liabilities
18,20
55,187
100,328
Lease liabilities
12,20
167,266
141,478
Non-current liab
ilities classi
fied as held fo
r sale
8
-
214,066
Other liabilities
19,20,27
7,440,120
7,292,585
Total current liabilities
ٻ
64,236,787
ٻ
59,459,528
Non-current liab
ilities:
Long-term ot
her paya
bles
20,39
769,487
798,547
Debentures
16,20,40
63,458,809
48,795,361
Long-term debt
16,20,40
10,667,731
12,726,724
Net defined benefit liabilities
35
79,165
247,566
Provisi
ons
17
4,214,137
4,010,118
Other financial liabilities
18,20
87,258
459,507
Deferred tax liab
ilities
34
3,689,328
3,277,573
Lease liabilities
12,20
783,306
615,566
Other liabilities
19,20,27
3,344,618
2,612,752
Total non-current liabilities
ٻ
87,093,839
ٻ
73,543,714
Total liabilities
ٻ
151,330,626
ٻ
133,003,242
Equity:
Capital stock
21
1,488,993
1,488,993
Capital surp
lus
22
4,070,260
4,190,093
Other capital items
23
(1,968,385)
(1,700,592)
Accumulated ot
her com
prehensi
ve loss
24
(1,772,601)
(3,409,661)
Retained earnings
25
73,167,855
68,911,800
Equity attrib
utable to the owners of the Comp
any
ٻ
74,986,122
ٻ
69,480,633
ٻ
Non-con
trolling intere
sts
ٻ
7,629,667
ٻ
6,860,337
Total equity
ٻ
82,615,789
ٻ
76,340,970
Total liabilities and eq
uity
୸
233,946,415
୸
209,344,212
(Concluded)
See accompanying n
otes to the cons
olidated fi
nancial statements.
ٻ
ٻ
ٻ
ٻ
ړٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBE
R 31, 2021 AND 2020
NOTES
2021
2020
(In milli
ons of Korean
Won, e
xcept per share amo
unts)
Sales
27,40
୸
117,610,626
୸
103,997,601
Cost of
sales
32
95,680,131
85,515,931
Gross profi
t
21,930,495
18,481,670
Selli
ng and adminis
trative expenses
28,32
15,251,546
16,086,999
Operating p
rofit
6,678,949
2,394,671
Gain on investm
ents in joint ven
tures and
associates, net
29
1,303,365
162,162
Finance income
30
912,802
813,916
Finance expenses
30
548,410
955,991
Other income
31
1,447,261
1,308,642
Other expenses
31,32
1,834,405
1,630,144
Profit befor
e income
tax
7,959,562
2,093,256
Income tax expe
nse
34
2,266,485
168,703
Profit for the year
୸
5,693,077
୸
1,924,553
Profit attrib
utable to:
Owners of the C
ompany
4,942,356
1,424,436
Non-control
ling inte
rests
750,721
500,117
Earnings per share attr
ibutable to the owners
of the Compa
ny:
33
Basic earnings
per share:
Common stock
୸
18,979
୸
5,454
1
st
preferred stock
ٻ
୸
19,002
୸
5,502
Diluted earnings
per share:
Common stock
୸
18,979
୸
5,454
1
st
preferred stock
୸
19,002
୸
5,502
See accompanying n
otes to the cons
olidated fi
nancial statements.
ٻ
ٻ
ٻ
ٻ
ڔٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHE
NSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2
021 AND 2020
2021
2020
(In millions
of Korean
Won)
Profit for the year
୸
5,693,077
୸
1,924,553
Other comprehens
ive income
(loss
) :
Items that will no
t be reclassified sub
sequently to
profit or lo
ss:
Profit on fi
nancial assets measured at F
VOCI, net
102,137
29,222
Remeasurements
of defined benefit plans
175,392
39,564
Changes in retai
ned earnings
of equit
y-account
ed
investees, net
77,482
1,117
Changes in share of
OCI of equity-accou
nted
investees, net
21,803
53,248
376,814
123,151
Items that may be reclass
i
fied s
ubsequently to
profit or
loss:
Profit (los
s) on fi
nancial ass
ets measured at
FVOCI, net
(6,448)
4,959
Gain on val
uation of cas
h flow hedge
derivatives, net
5,015
100,077
Changes in share of
OCI of
equity-accounted
investees, net
546,504
(278,999)
Gain (loss
) on foreign operati
ons transl
ation, net
1,246,177
(971,213)
1,791,248
(1,145,176)
Total other c
omprehensive income (los
s)
2,168,062
(1,022,025)
Total comprehensive in
come
୸
7,861,139
୸
902,528
Compreh
ensive income attributable to:
Owners of the C
ompany
6,938,637
395,224
Non-control
ling inte
rests
922,502
507,304
Total comprehensive in
come
୸
7,861,139
୸
902,528
See accompanying n
otes to the cons
olidated fi
nancial statements.
ٻ
ٻ
ٻ
ٻ
ڌڋٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF CH
ANGES IN EQUITY
FOR THE YEARS ENDED DECEMBE
R 31, 2021 AND 2020
Capital
stock
Capital
sur
p
lus
Othe
r
capital
items
Accumulated
other
comprehensive
income
(
loss
)
Retained
earnin
g
s
Tota
l equi
ty
attrib
uta
b
le t
o
the owner
s of
the Com
p
an
y
Non-
contr
olli
ng
interes
ts
Total
e
q
uit
y
(
In mill
ions of
Korea
n
Won
)
Balance
at
Janu
ary 1,
2020
୸
1,488,993
୸
4,197,015
୸
(1,516,817)
୸
(2,353,022)
୸
68,249,633
୸
70,065,802
୸
6,299,952
୸
76,365,754
Compr
ehe
nsi
ve
incom
e:
Prof
it for th
e perio
d
ٻ
-
ٻ
-
ٻ
-
-
1,424,436
1,424,436
500,117
1,924,553
Gain (
loss
)
on fi
nancial
assets
meas
ured
at
FVOCI, ne
t
ٻ
-
ٻ
-
ٻ
-
31,827
(5,560)
26,267
7,914
34,181
Gain on
valuatio
n
of cas
h fl
ow hedge
deriva
tives, ne
t
ٻ
-
ٻ
-
ٻ
-
90,265

-
90,265
9,812
100,077
Changes
in valu
ation
of eq
uity-accou
nted
inv
estee
s, n
et
ٻ
-
ٻ
-
ٻ
-
(223,503)
1,118
(222,385)
(2,249)
(224,634)
Remeas
urements of
define
d benefit
plans
ٻ
-
ٻ
-
ٻ
-

-
31,869
31,869
7,695
39,564
Loss on foreign
operat
ions
trans
lati
on, ne
t
ٻ
-
ٻ
-
ٻ
-
(955,228)

-
(955,228)
(15,985)
(971,213)
Tota
l compre
hensiv
e
incom
e
-
-
-
(1,056,639)
1,451,863
395,224
507,304
902,528
Tran
sactio
ns with
owner
s, re
corded
di
rectly in
equity
:
Payment o
f cash
divi
den
ds
ٻ
-
-
-
-
(790,489)
(790,489)
(103,290)
(893,779)
Increas
e in paid-
in
capital
of
subsi
d
iaries
by
issuin
g stock
ٻ
-
(2,586)
-
-
-
(2,586)
239,519
236,933
Disposals of
inves
tment
of
subsidiaries
ٻ
-
-
-
-
-
-
(67,662)
(67,662)
Purchase
s of
treas
ury st
ocks
-
(303,077)
-
-
(303,077)
-
(303,077)
Disposals of
treas
ury st
ocks
-
(2,183)
119,302
-
-
117,119
-
117,119
Othe
rs
ٻ
-
(2,153)
-
-
793
(1,360)
(15,486)
(16,846)
Tota
l tran
sactio
ns with
owners, rec
orded
direc
tly in
equity
-
(6,922)
(183,775)
-
(789,696)
(980,393)
53,081
(927,312)
Balance
at
Decem
ber 31, 202
0
୸
1,488,993
୸
4,190,093
୸
(1,700,592)
୸
(3,409,661)
୸
68,911,800
୸
69,480,633
୸
6,860,337
୸
76,340,970
(Continued)
ٻ
ٻ
ٻ
ٻ
ڌڌٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF CH
ANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2
021 AND 2020
Capital
stock
Capital
sur
p
lus
Othe
r
capital
items
Accumulated
other
comprehensive
income
(
loss
)
Retained
earnin
g
s
Tota
l equi
ty
attrib
uta
b
le t
o
the owner
s of
the Com
p
an
y
Non-
contr
olli
ng
interes
ts
Total
e
q
uit
y
(
In mill
ions of
Korea
n
Won
)
Balance
at
Janu
ary 1,
2021
୸
1,488,993
୸
4,190,093
୸
(1,700,592)
୸
(3,409,661)
୸
68,911,800
୸
69,480,633
୸
6,860,337
୸
76,340,970
Compr
ehe
nsi
ve
incom
e:
Prof
it for th
e perio
d
-
-
-
-
4,942,356
4,942,356
750,721
5,693,077
Gain (
loss
)
on fi
nancial
assets
meas
ured
at
FVOCI, ne
t
-
-
-
(21,021)
114,718
93,697
1,992
95,689
Gain (lo
ss) on va
luatio
n
of cas
h fl
ow hedge
deriva
tives, ne
t
-
-
-
(47,902)
-
(47,902)
52,917
5,015
Changes
in valu
ation
of eq
uity-accou
nted
inv
estee
s, n
et
-
-
-
544,170
77,482
621,652
24,137
645,789
Remeas
urements of
define
d benefit
plans
-
-
-
-
167,021
167,021
8,371
175,392
Gain o
n
for
eign
operat
ions
trans
lati
on, ne
t
-
-
-
1,161,813
-
1,161,813
84,364
1,246,177
Tota
l compre
hensiv
e
incom
e
-
-
-
1,637,060
5,301,577
6,938,637
922,502
7,861,139
Tran
sactio
ns with
owner
s, re
corded
di
rectly in
equity
:
Payment o
f cash
divi
den
ds
-
-
-
- (1,045,775)
(1,045,775)
(140,854)
(1,186,629)
Increas
e in paid-
in
capital
of
subsi
d
iaries
by
issuin
g stock
-
19,819
-
-
-
19,819
165,311
185,130
Acquis
ition of
inves
tment
of
subsidiaries
-
(164,567)
-
-
-
(164,567)
65,966
(98,601)
Disposals of
inves
tment
of
subsidiaries
-
-
-
-
-
-
(71,634)
(71,634)
Purchase
s of
treas
ury st
ocks
-
-
(305,337)
-
-
(305,337)
-
(305,337)
Disposals of
treas
ury st
ocks
-
24,915
37,544
-
-
62,459
-
62,459
Repa
yment
of
hybri
d bonds
-
-
-
-
-
-
(150,323)
(150,323)
Othe
rs
-
-
-
-
253
253
(21,638)
(21,385)
Tota
l tran
sactio
ns with
owners, rec
orded
direc
tly in
equity
-
(119,833)
(267,793)
-
(1,045,522)
(1,433,148)
(153,172)
(1,586,320)
Balance
at
Decem
ber 31, 202
1
୸
1,488,993
୸
4,070,260
୸
(1,968,385)
୸
(1,772,601)
୸
73,167,855
୸
74,986,122
୸
7,629,667
୸
82,615,789
(Concluded)
See accompanying n
otes to the cons
olidated fi
nancial statements.
ٻ
ٻ
ٻ
ٻ
ڌڍٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF CA
SH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2
021 AND 2020
NOTES
2021
2020
(In millions of Korean Won)
Cash flows fro
m operating activities:
Cash generate
d from operat
ions:
36
Profit for the year
୸
5,693,077
୸
1,924,553
Adjustment
s
15,777,589
16,808,385
Changes in operating ass
ets and liabilitie
s
(20,287,776)
(16,991,771)
1,182,890
1,741,167


Interest received
449,789
519,995
Interest paid
(1,905,945)
(2,008,084)
Dividend receive
d
213,735
234,432
Income tax paid
(1,116,885)
(897,317)
Net cash used in ope
rating activities
(1,176,416)
(409,807)
Cash flows f
rom inv
esting activities:
Changes in s
hort-term
financia
l instrument
s, net
1,326,872
566,427
Changes in other
financial assets (curre
nt
), net
225,974
(2,348,252)
Decrease in other fi
nancial assets (non-cu
rrent)
259,202
27,070
Collecti
on of other recei
vables
67,437
37,388
Dispos
als of long-t
erm financi
al instruments
35,183
42,935
Proceeds from dis
posals of pr
operty, plant and
equipment
113,008
133,981
Proceeds from dis
posals of int
angible assets
20,261
3,823
Proceeds from dis
posals of inves
tment of
subsidi
aries
-
76,133
Proceeds from dis
posals of
in
vestment in joint
ventures and as
sociates
8,873
4,991
Acquisi
tions of s
ubsidiari
es, net
of cash acqui
red
(294,210)
(50,313)
Increases in ot
her financial
asset
s (non-current
)
(212,964)
(148,896)
Increases in other
receivables
(69,563)
(25,077)
Purchases
of long-term fi
nancial ins
truments
(279,471)
(11,894)
Acquisi
tions of pro
perty, pl
ant and eq
uipment
(4,304,334)
(4,687,842)
Acquisitions o
f intangible assets
(1,556,993)
(1,701,608)
Acquisit
ions of inves
tments i
n joint
ventures and
associates
(565,528)
(1,359,278)
Others
43,674
102,816
Net cash used in in
vesting activities
(5,182,579)
(9,337,596)
(Continued)
ٻ
ٻ
ٻ
ٻ
ڌڎٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLO
WS
FOR THE YEARS ENDED DECEMBER 31, 2
021 AND 2020
NOTES
2021
2020
(In millions of Korean Won)
Cash flows fro
m financing activities:
Changes in s
hort-term
borrow
ings, net
୸
(620,051)
୸
301,587
Proceeds from long
-term debt and debentures
40,688,506
35,536,741
Proceeds from capital contrib
ution from non-
controlling i
nterest
165,311
5,080
Acquisi
tions of s
ubsidia
ries
(300,670)
-
Repayment of l
ong-term debt
and debentures
(29,164,478)
(23,059,360)
Repaymen
t of lease liabilities
(185,158)
(201,571)
Purchases of t
reasury stocks
(305,337)
(303,077)
Dividends pai
d
(1,186,800)
(893,769)
Repayment of
hybrid b
onds
(150,323)
-
Others
(148,714)
(33,158)
Net cash prov
ided by financing activities
8,792,286
11,352,473
Decrease due to transfer
to as
sets classified
as held for sale
-
(27,784)
G
G
Effect of exchange rate c
h
anges on cas
h and
cash equivalent
s
500,127
(397,121)
Net increase i
n cash and cash
equivalents
2,933,418
1,180,165
G
G
Cash and cas
h equivalents
, be
ginning of the year
9,862,136
8,681,971
G
G
Cash and cas
h equivalents
, en
d of the year
୸
12,795,554
୸
9,862,136
(Concluded)
See accompanying n
otes to the cons
olidated fi
nancial statements.
ٻ
ٻ
ٻ
ٻ
ڌڏٻ
ٻ
HYUNDAI MOTOR COMPANY AND ITS SU
BSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2
021 AND 2020
1. GENERAL
:
Hyundai Mot
or Company (the
“Company” or “Parent Comp
any”) was incor
porated in December 1
967, unde
r the laws
of
the Republic o
f Korea. The Company and
its s
ubsidiari
es (the “Grou
p”) manufact
ure and
distri
bute motor vehicl
es an
d
parts, operate
vehicle financing and c
redit card processing, a
nd manufacture
trains.
The shares of the
Company ha
ve been listed on the Ko
rea Exchange si
nce June 19
74, and the Global Depos
itary Recei
pts
issued by t
he Company ha
ve been listed on the L
ondon Stock Excha
nge and Luxemb
ourg Stock Exchange.
As of December 31,
2021, the major shareholders
of the
Company are Hyundai MOB
IS (45,782,023 shares,
21.43%) a
nd
Mr. Chung, Mong
Koo (11,395,859
shares, 5.
33%).
(1)
The Group’s cons
olidated s
ubsidi
aries as of D
ecember 31, 2021 are
as follows.
Name of subsidiarie
s
Nature of
business
Location
Ownership
p
ercenta
g
e
I
n
d
i
r
ec
t
owner
shi
p
H
y
undai Ca
p
ital Services, Inc.
Financin
g
Korea
59.68
%
Hyundai C
ard C
o., Ltd.
(*1)
Ý
Ý
36.96
%
Hyunda
i Rotem
Company (Hy
undai
Rotem
)
(
*2
)
Manufac
turing
Ý
33.
77%
Hyunda
i KEFICO
Corp
oratio
n (H
yundai
KEFICO)
Ý
Ý
100.00%
H
y
undai Pa
rtecs
Co., Lt
d.
Ý
Ý
56.00
%
H
y
undai N
GV
En
g
ineerin
g
Ý
53.
66%
Maintrans Com
p
an
y
Services
Ý
100.0
0%
H
y
undai Ro
tem 100.00%
Rotem SRS C
o., Ltd.
Ý
Ý
100.00%
Ý
Jeonb
uk H
y
undai
Motors
FC Co.,
Ltd.
Football cl
ub
Ý
100.00%
AirPlu
g
Inc.
R&D and
Sales
Ý
99.32
%
H
y
undai M
otor Ame
rica
(
HMA
)
Sales
USA
100.00%
Hyundai Capita
l Ame
rica (HCA)
Financing
Ý
80.
00%
HMA 80.
00%
Hyundai M
otor Manufac
turing
Alabama, L
LC
(
HMMA
)
Manufac
turing
Ý
100.00%
HMA 100
.00%
H
y
undai Tr
anslead, Inc.
(
HT
)
Ý
Ý
100.00%
Stamped
Metal American
Research
Technol
ogy, I
n
c. (S
MARTI)
Holding c
ompany
Ý
72.
45%
HMA 72.
45%
Stamped
Metal American
Research
Technol
o
gy
LLC
(
SMART
)
Manufac
turing
Ý
100.
00%
SM
ARTI
100.00
%
Hyundai
America Techni
cal Center,
Inc. (HATCI)
R&D
Ý
100.00%
Genesis Motor Ameri
ca LLC
Sal
es
Ý
100.00%
HMA
100.0
0%
H
y
undai Ro
tem USA Cor
p
oration
Manufac
turin
g
Ý
100.00%
H
y
undai Ro
tem 100.00%
Mocean
lab Inc.
Mo
bilit
y
service
Ý
100.00%
superna
l, LLC(*
1,4)
R&D
Ý
44.
44%
H
y
undai M
o
tor I
nves
tment, I
nc.
Investme
nt
Ý
100.00%
H
y
undai A
uto Ca
nada
Cor
p
.
(
HACC
)
Sale
s
Canada
100.00%
H
MA
100.00%
Hyunda
i Auto C
ana
da Ca
ptive
Insurance In
c. (HACCI)
Insurance
Ý
100.00%
Ý
H
y
undai Ca
p
ital C
anada I
nc.
(
HCCA
)
Financin
g
Ý
70.
00%
H
y
undai Ca
p
ital Services 20
.00%
H
y
undai Ca
p
ital Lease Inc.
(
HCLI
)
Ý
Ý
100.00%
HCCA 100
.00%
HK Lea
se Fundi
ng LP
Ý
Ý
100.00%
HCLI 99.99%
,
HCCA Fu
nding
Inc. 0.01
%
HCCA Fundin
g
Inc
.
Ý
Ý
100.0
0%
HCLI 100.0
0%
HCCA Fundin
g
Two Inc.
Ý
Ý
100.00%
HCCA 100.0
0%
HK Retail Funding L
P
Ý
Ý
100.00%
HCCA
99.99
%,
HCCA Fun
ding Two Inc
0.01
%
H
y
undai M
otor India
Limited
(
HMI
)
Manufacturi
n
g
India
100.00%
Hyunda
i Motor
India
Engi
neering
Private Limited
(
HMIE
)
R&D
Ý
100.00%
HMI 10
0.00
%
ٻ
ٻ
ٻ
ٻ
ڌڐٻ
ٻ
Name of subsidiarie
s
Nature of
business
Location
Ownership
p
ercenta
g
e
I
n
d
i
r
ec
t
owner
shi
p
Hyundai I
ndia I
nsurance Bro
king Pr
ivate
Limited
(
HIIB
)
Insurance
Ý
100.00%
Ý
Hyundai Capita
l India
Private
Limite
d
(
HCI
)
Financi
n
g
Ý
100.00%
Hyundai Capita
l Se
rvices
100.
00%
H
y
undai M
o
tor J
a
p
an Co.,
Ltd.
(
HMJ
)
S
ales
Ja
p
an
100.00%
Hyunda
i Motor
Japan R&D C
ent
er
Inc. (HMJ R&D)
R&D
Ý
100.00%
Beijing Jing
xian Motor Safegua
rd
Service Co., Ltd.
(
BJMSS
)
Sales
China
100.00%
Beijing Ji
ngxianronghua
Motor
Sale
Co., Ltd.
Ý
Ý
100.00%
BJMS
S 100.
00%
Gene
sis Motor Sales
(
Shan
g
hai
)
Co. Ltd.
Ý
Ý
100.0
0%
Hyundai Mi
llennium (Be
ijing) Re
al Estate
Develo
p
ment C
o., Ltd.
Real estate
develo
p
ment
Ý
99.00%
CMEs 99.00%
Rotem Equipm
ents (Beiji
ng) Co.
, Ltd.
Sales
Ý
100.00%
Hyunda
i Rotem
100.00%
KEFICO Automotive
Systems
(
Bei
j
in
g)
Co.
, Ltd
.
Manufac
turing
Ý
100.00%
Hyunda
i KEFICO
10
0.00
%
KEFICO Automotive
Systems
(
Chon
gq
in
g)
Co., Ltd.
Ý
Ý
90.00%
Hyunda
i KEFICO
90.0
0%
Hyunda
i Truck &
Bus (China
) Co
., Ltd.
(
HTBC
)
Ý
Ý
100.00%
HYUNDAI THANH CONG VIETNAM
AUTO MANUFACTURING
CORPORATION (HTMV)(*1)
Ý
Vietnam
50.00%
HYUNDAI THANH CONG
COMMERCIAL VEHICLE JOINT
STOCK COMPANY
(
HTCV
)(
*1
)
Sales
Ý
50.00
%
HYUNDAI THANH CONG VIET NAM
AUTO JOINT VENTURE JOINT
STOCK COMPANY
(
HTV
)(
*1
)
Ý
Ý
50.00%
HYUNDAI KEFICO VIETNAM
COMPANY LIMITED
Manufac
turing
Ý
100.00%
Hyunda
i KEFICO
10
0.00
%
Hyunda
i Motor
Compa
ny Australia
Pt
y
Limite
d
(
HMCA
)
Sales
Australia
100
.00%
HYUNDAI MOTOR PHILIPPINES. INC.
(HMPH)
Ý
Philippi
nes
99.99%
PT. HYUNDAI MOTOR
MANUFACTURING INDONESIA
(
HMMI
)
Manufac
turing
Indones
ia
99.99
%
PT HYUNDAI MOTORS INDONESIA
(
HMID
)
Sale
s
Ý
100.00%
HMMI 0.01
%
PT. HYUNDAI CAPITAL INDONESIA
(
HCID
)
Financi
n
g
Ý
10
0.00%
Hyunda
i Capital
Services 100.
00%
Hyundai Capita
l Australia
Pty Li
mited
Ý
Australia
100.00%
Ý
HR Mechani
cal Services L
imited
Serv
ices
New Zealand
100.00%
H
y
undai Ro
tem 100.00%
Hyunda
i Motor
Manufa
cturing Cz
ech,
s.r.o.
(
HMMC
)
Manu
facturin
g
Czech
100.00%
Hyundai
Motor Czech s.r.o (HMCZ)
Sales
Ý
100.00%
Hyunda
i Motor
Europe
Gm
bH (HME)
Marketing a
nd
Sales
Ge
rmany
100.00%
Hyunda
i Motor
Deuts
chlan
d GmbH
(
HMD
)
Sales
Ý
100.00%
Hyunda
i Motor
Europe
Tec
hnical
Center GmbH
(
HMETC
)
R&D
Ý
100.0
0%
H
y
undai M
o
tor S
p
ort Gm
bH
(
HMSG
)
Marke
tin
g
Ý
100.00%
HME 100.
00%
H
y
undai Ca
p
ital Eur
o
p
e G
mbH
Financi
n
g
Ý
100.00%
H
y
undai Ca
p
ital Servi
ces 100.00%
Hyunda
i Motor
Comm
onwea
lth o
f
Inde
p
endent States B.
V
(
HMCIS B.V
)
Holding c
ompany
Ne
therlands
100.00%
HMMR 1.
65%
Hyundai M
otor Nethe
rlands
B.V.
(
HMNL
)
Sales
Ý
100.0
0%
Hyunda
i Motor
Manufa
cturing Rus
LLC
(
HMMR
)
Manufac
turing
Russi
a
70.00%
Hyunda
i Motor
Comm
onweal
th o
f
Inde
p
endent St
ates
(
HMCIS
)
Sales
Ý
100.00%
HMCIS
B.V 100.00
%
Hyundai M
obility La
b (HML)
R&D
Ý
100.00%
HMCIS 99.00%
, HMMR 1.00%
H
y
undai Ca
p
ital Se
rvices Lim
ited
Financin
g
Ý
100.00%
H
y
undai Ca
p
ital Eur
o
p
e 100.0
0
%
ٻ
ٻ
ٻ
ٻ
ڌڑٻ
ٻ
Name of subsidiarie
s
Nature of
business
Location
Ownership
p
ercenta
g
e
I
n
d
i
r
ec
t
owner
shi
p
Liabilit
y
Com
p
an
y
Hyunda
i Truc
k And B
us Rus LL
C
(HTBR)
Sales
Ý
100.0
0%
Hyunda
i Assa
n Otomo
tiv Sanayi
Ve
Ticaret A.S.
(
HAOSVT
)(
*3
)
Manufac
turing
Tur
key
97.00%
Hyundai EURotem Demiryo
lu Araclari
Sanayi
ve Ticaret A.S
Ý
Ý
50.50
%
Hyunda
i Rote
m 50.50
%
Hyunda
i Rote
m Compa
ny –
Hyunda
i
EURotem Demiry
olu Araclari
SAN. VE TIC. A.S ORTAK GIRISIMI
Sales
Ý
100.0
0%
Hyunda
i Rote
m 65.
00%,
Hyunda
i EURote
m A.S.
35.00%
Hyunda
i Rote
m Compa
ny –
Hyunda
i
EUrotem Ma
hmut
bey Pr
ojesi OR
TAK
GIRISIMI
Ý
Ý
100.00%
Hyunda
i Rote
m 85.
00%,
Hyunda
i EURote
m A.S.
15.00%
Hyundai Rote
m Malaysia SDN B
HD
Ý
Malaysia
100
.00%
Hyunda
i Rotem
100.00%
Rotem SRS Ukrai
ne LLC
Services
Ukraine
100
.00%
Rotem SRS C
o., Ltd. 100.
00%
Rotem SRS E
gyp
t LLC
Ý
E
gyp
t
98.0
0%
Rotem SRS Co., L
td. 98.0
0%
H
y
undai M
otor UK Limite
d
(
HMUK
)
Sales
UK
100.00%
Hyunda
i Motor
Company Ita
ly S
.r
.l
(HMCI)
Ý
Italy
100.0
0%
H
y
undai M
otor Es
p
ana, S.L.U.
(
HMES
)
Ý
S
p
ain
100.00%
H
y
undai Mo
tor France S
AS
(
HMF
)
Ý
France
100.00%
H
y
undai M
otor Po
land S
p
. Zo. O
(
HMP
)
Ý
Poland
100
.00%
Ge
nesis
Motor Europe
Gmbh (G
ME)
Ý
Ge
rmany
100
.00%
Gene
sis Motor UK Limited
(
GMU
K
)
Ý
UK
100.00%
GME 100.
00%
Gene
sis Motor Switzerland
AG
(
GMC
H
)
Ý
Switzerla
nd
100
.00%
Ý
Ge
nesis
Motor Deuts
chland Gm
bH
(GMD)
Ý
German
y
100.
00%
Ý
H
y
undai H
y
dro
g
en Mobilit
y
AG
(
HHM
)
Ý
Switze
rland
75.00%
Hyundai M
otor DE Mexic
o S DE
RL
DE CV
(
HMM
)
Ý
Mexico
100
.00%
HT 0.
01%
Hyundai de
Me
xico, SA D
E C.V
.,
(
HYMEX
)
Manufac
turing
Ý
99.99%
HT 99.9
9%
HYUNDAI KEFICO MEXICO, S.
DE R.L. DE C.V.
Ý
Me
xico
100.00%
Hyunda
i KEFICO
10
0.00
%
Hyunda
i Rio V
ista
, Inc
.
Real estate
develo
p
ment
USA
100
.00%
HT 100.
00%
Hyunda
i Motor
Bras
il Montad
ora de
Automoveis LTDA
(
HMB
)
Manufac
turi
ng
Bra
zil
100.00%
Hyundai Capita
l Brasil Se
rvicos
De
Assistencia F
inancei
ra Ltda
Financi
n
g
Ý
100.00%
Hyunda
i Capital
Services 100.
00%
Hyundai Rote
m Brasil Ind
ustria E
Comercio De Tre
ns Ltda.
Manufac
turing
Ý
100.00%
Hyunda
i Rotem
100.00%
HMB Holding Partic
ipacoes
Finan
ceiras Ltda.
Holding c
ompany
Ý
99.99
%
HMB 99.99%
China Millen
nium Corp
orations (
CMEs)
Ý
Cayman
Islands
59.60
%
China Mobilit
y Fund, L.P.
Investment
Ý
72.00
%
KyoboAXA Private Tomo
rrow Securities
Investm
ent Tr
ust No.
12
Ý
Korea
100.00%
Shinhan
BNPP Private Co
rporate
Securit
y
Inves
tment Tr
ust No.34
Ý
Ý
100.00%
KB Leaders Private Sec
urities
Fund1
(
Bond
M
ixe
d
)
Ý
Ý
100.00%
Samsung E
TF rotation Priva
te Inve
stment
Trust 1
Ý
Ý
100.00%
ZER01
NE Accelerator
Investm
ent Fun
d
No.1
Ý
Ý
99.00
%
Autopia
Sixty-
Fourth
~ Seve
nty-Se
cond
Asset Securitiza
tion Spec
ialty Co
mpany
(*1)
Financi
n
g
Ý
0.50%
Hyun
dai Capital Se
rvices
0.50%
Zavurov F
irst Co., Ltd.
(
*1
)
Ý
Ý
0.00%
H
y
undai Ca
p
ital Services 0
.00%
Super Serie
s Fifth ~ E
leventh
Securitization
S
p
ecialt
y
Co., Ltd.
(
*1
)
Ý
Ý
0.50%
Hyundai
Card
0.
50%
Bluewa
lnut Co.,
Ltd.
Ý
Ý
100.00%
Hyunda
i Card
100.00%
MOCEAN Co., Ltd
Mobilit
y
Service
Ý
80.00%
ٻ
ٻ
ٻ
ٻ
ڌڒٻ
ٻ
Name of subsidiarie
s
Nature of
business
Location
Ownership
p
ercenta
g
e
I
n
d
i
r
ec
t
owner
shi
p
H
y
undai CH
A Fun
din
g
, LLC
Financin
g
USA
100
.00%
HCA 100
.00%
H
y
undai Lea
se Titli
n
g
Trust
Ý
Ý
100.00%
Ý
Hyundai H
K Fun
d
ing, L
LC
Ý
Ý
100.00%
Ý
H
y
undai HK
Fun
din
g
Two, LLC
Ý
Ý
100.00%
Ý
H
y
undai HK
Fun
din
g
Three, LLC
Ý
Ý
100.00%
Ý
H
y
undai HK
Fun
din
g
Four
, LLC
Ý
Ý
100.00%
Ý
Hyunda
i ABS Fu
nding, LLC
Ý
Ý
100.00%
Ý
HK Real Pro
p
erties, LLC
Ý
Ý
100.0
0%
Ý
H
y
undai Auto L
ease Offerin
g
, LLC
Ý
Ý
100.00%
Ý
H
y
undai HK Lease,
LLC
Ý
Ý
100.00%
Ý
Extended Term Am
ortizing
Progra
m, LLC
Ý
Ý
100.00%
Ý
Hyundai
Asset Backed Lease,
LLC
Ý
Ý
100.00%
Ý
HCA Exchan
g
e, LLC
Ý
Ý
100.00%
Ý
H
y
undai Pr
otection Plan, I
nc.
Insurance
Ý
100.00%
Ý
H
y
undai Pr
otection Plan Fl
orida, Inc.
Ý
Ý
100.00%
Ý
Hyundai C
apital
Insura
nce Se
rvice
s, LLC
Ý
Ý
100.00%
Ý
H
y
undai Ca
p
ital Insurance Com
p
an
y
Ý
Ý
100.00%
Ý
Power Prot
ect Extend
ed Services, Inc.
Ý
Ý
100.00%
Ý
Power Pr
otect Extend
ed Services Flo
rida,
Inc.
Ý
Ý
100.00%
Ý
(*1)
The Gr
oup is c
onside
red to ha
ve s
ubstanti
ve cont
rol ove
r the en
tities by virtue
of an agreeme
nt or re
lationsh
ip with
other
investors, or rela
tions
hip with structured entities.
(*2)
Even t
hough t
he shareholdi
ng ratio of
ownership is
less than
half, t
he G
roup ha
s de fa
cto co
ntrol over the
entity due t
o t
he
relative
size
of the
voting r
ights
held and the
degree of s
h
are dis
per
sion of
other
voti
ng rig
h
ts hol
ders.
(*3) For t
he year ended December 3
1, 2021, th
e Company’
s shareholding
ratio in Hyundai
Assan Otomo
tiv Sanayi Ve T
icaret A.S.
(HAOSVT), a sub
sidiary, changed from 70% to 97
%. As a result
, capital su
rplus and non-contro
ll
ing interest have decreased
by
୸
16
4,567 m
illion a
nd
୸
136,
103 milli
on, respectively.
(*4) F
or the year e
nded D
ecember 31,
2021, the na
me of c
ompany has
be
en chan
ged from G
enesis Air Mo
bility L
LC to super
nal,
LLC and the C
o
mpany’s sha
reholdin
g ratio cha
nged fr
om 100
% to 44.
44%. As a re
sult, ca
pital surpl
u
s and non-c
ontrollin
g
interest h
ave increased by
୸
19,8
19 million and
୸
107,55
9 million, r
espec
tively.
(2)
Sum
marized financial po
sition and results of oper
ations of major consolid
ated subsidiaries
as
of
an
d for the year
ended December 31, 2
021 are as
follows.
Name of sub
sidiaries
Assets
Liabilities
Sales
Profit (l
oss)
for the period
(In millions of Korean Won)
Hyundai Capital Serv
ices, Inc. (*)
୸
34,917,071
୸
29,710,340
୸
3,485,601
୸
432,055
Hyundai Card C
o., Ltd. (*
)
21,654,608
18,026,2
53
2,744,902
314,139
Hyundai Rot
em Compa
ny (*)
4,107,183
2,838,938
2,872,512
51,412
Hyundai KEFIC
O Corporati
on (*)
2,038,940
1,187,748
2,029,003
60,512
HCA (*
)
59,230,3
49
52,672,107
10,686,865
1,050,25
0
HMA
8,578,534
5,929,58
8
22,883,1
30
1,028,470
HMMA
4,522,540
2,741,306
8,088,117
236,955
HMMC
4,406,392
1,852,526
7,426,329
417,537
HMI (*)
4,310,031
1,782,41
5
7,339,424
437,395
HME (*)
2,107,163
2,044,18
1
11,846,9
77
11,410
HACC (*
)
1,946,770
1,119,22
4
3,582,216
117,911
HMMR
1,931,470
959,020
3,178,717
172,149
HAOSVT
1,469,527
887,896
3,021,886
198,490
HMB
1,387,554
913,764
2,074,018
41,020
HMCA
911,712
716,694
1,938,967
28,116
(*)
Based on t
he subs
idiary’s
consolida
ted fi
nancial state
ments
ٻ
ٻ
ٻ
ٻ
ڌړٻ
ٻ
Su
mmarized financial p
osition and results o
f operations of major con
solidated subsidiaries
as
o
f
an
d for the year
ended December 31, 2
020 are
as follows.
Name of subsidiaries
Assets
Liabilities
Sales
Profit (l
oss)
for the period
(In millions of Korean Won)
Hyundai Capital Serv
ices, Inc. (*)
୸
33,683,340
୸
28,951,217
୸
3,245,441
୸
348,571
Hyundai Card C
o., Ltd. (*
)
19,941,856
16,500,531
2,526,137
244,561
Hyundai Rote
m Compa
ny (*)
4,197,374
2,851,222
2,785,326
22,40
9
Hyundai KEFIC
O Corporati
on (*)
2,007,029
1,246,934
1,880
,848
120,461
HCA (*
)
45,365,985
40,336,417
11,298,228
514,792
HMA
6,923,939
5,483,74
1
19,633,057
300,129
HMMA
4,735,474
3,326,009
6,994,745
(1,019,072)
HMMC
4,012,518
1,717,572
5,817,256
162,669
HMI(*)
3,903,535
1,764,081
5,782
,305
221,246
HME (*)
2,416,136
2,364,634
9,215
,877
14,185
HMMR
1,676,120
941,181
2,829,969
93,127
HACC (*
)
1,543,844
895,215
2,998
,410
64,167
HAOSVT
1,47
2,674
968,587
2,468
,376
56,050
HMB
1,159,635
964,698
1,472,32
8
(47,253)
HMCA
818,850
656,270
1,415,987
11,686
(*)
Based on
the subsidi
ary’s consolidated finan
cial statement
s
(3)
The financial statements of all
subs
idiaries used in
the preparation of the consolidated financial
statements
are prepared for the s
ame repo
rting periods
as the Company’
s.
(4)
Summarized cash flow
s of no
n-wholly
owned subsi
diaries t
hat have material non-cont
rolli
ng interest
s to the
Group and subs
idiaries of fina
nce segment for the year ende
d December 31,
2021 are as fo
llows.
Description
Hyundai Capi
tal
Services, Inc
Hyundai Card C
o.,
Ltd.
HCA
HCCA
Hyundai
Rotem
Comp
any
(In millions of Korean Won)
Provided
by (use
d in)
operating
activities
୸
(367,733
)
୸
(1,400,073)
୸
(7,321,554)
୸
(1,558,760)
୸
(62,714)
Provided by (us
ed in)
investing activities
(40,360)
(
105,567)
(955,140
)
(642)
146,1
42
Provided
by (use
d in)
financing activities
510,859
1,310,731
8,132,339
1,549,724
(99,586)
Effect of exchange rate
changes on cas
h and
cash
equivalent
339
-
37,398
6,651
(2,842)
Net increase (decrease) in
cash and cash
equivalents
103,105
(194,909)
(106,957
)
(3,027)
(19,000)
Beginni
ng balance of
cash and cash
equivalents
406,065
774,353
475,148
75,429
338,728
Ending balance o
f cash
and cash equival
ents
୸
509,170
୸
579,444
୸
368,191
୸
72,402
୸
319,728
ٻ
ٻ
ٻ
ٻ
ڌڔٻ
ٻ
Summarized cash flows
of non-whol
ly owned s
ubsidiaries t
hat had material
non-controlling i
nterests
to the
Group
and subsidiari
es of fi
nance segment for
the year ended December 3
1, 2020 are as follows.
Description
Hyundai Capi
tal
Services, Inc
Hyundai Card C
o.,
Ltd.
HCA
HCCA
Hyundai
Rotem
Comp
any
(In millions of Korean Won)
Provided
by (use
d in)
operating
activities
୸
(734,919
)
୸
(2,110,922)
୸
(5,671,707)
୸
(736,550
)
୸
56,423
Used in
investing
activities
(349,375)
(81,4
58)
(99,608)
(1,291)
(75,057)
Provided
by (use
d in)
financing
activities
1,139,274
2,236,920
6,134,190
760,770
(21,649)
Effect of exchange rate
changes on cas
h and
cash
equivalent
-
(273)
(37,326)
(2,767)
(3,475)
Net increase (decrease) in
cash and cash
equivalents
54,980
44,26
7
325,549
20,162
(43,758)
Beginni
ng balance of
cash and cash
equivalents
351,0
8
5
730,086
149,599
55,267
382,486
Ending balance o
f cash
and cash equival
ents
୸
406,065
୸
774,353
୸
475,148
୸
75,429
୸
338,728
(5)
Details of non-wholly owne
d subs
idiaries of the Comp
any t
hat have material non-c
ontrolling interes
ts as of
and for the year en
ded December 31
, 2021 are as
follows.
ٻ
Description
Hyundai Capi
tal
Services, Inc.
Hyundai Card C
o.,
Ltd.
Hyundai Rote
m
Comp
any
(In millions of Korean Won)
Ownership p
ercentage of
non-controlling
interes
ts
40.32%
63.04%
66.23%
Accumulated non
-controlling interests
୸
2,097,956
ஶ
2,379,871
ஶ
702,366
Profit attrib
utable to non-con
trolling
interest
s
170,930
198,059
28,968
Dividends pai
d to no
n-control
ling interests
37,00
2
92,463
-
Details
of non-wholly owned
subsidi
aries of the C
ompany t
hat had material
non-controlling i
nterests
as of and for
the year ended December 3
1, 2020 are as
follows.
Description
Hyundai Capi
tal
Services, Inc.
Hyundai Card
Co., Ltd.
Hyundai Rote
m
Comp
any
(In millions of Korean Won
)
Ownership p
ercentage of
non-controlling
interes
ts
40.32%
63.04%
66.23%
Accumulated non
-controlling interests
୸
1,912,151
୸
2,267,168
୸
808,494
Profit attrib
utable to non-con
trolling
interest
s
139,223
154,171
13,51
0
Dividends pai
d to no
n-control
ling interests
36,081
63,429
3,733
(6) Financial
support
provided
to
consolidated structured entities
As of December 31, 2021
, Hyundai Card C
o., Ltd. an
d Hyund
ai Capital S
ervices, Inc., subs
idiaries of the Company,
have agreements t
hat provide
counterpartie
s with ri
ghts of
re
cours
e in the
event of
default on t
he derivati
ves relatin
g
to
asset-backed securities issu
ed by consolidated stru
ctu
red entities, Autopia Sixty-
Eighth and Sixty-Ninth Asset
Securitization Sp
ecialty Company, Su
per Series Fifth, Sixth,
Eighth and Ninth Securitization Sp
ecialty Co., Ltd..
ٻ
ٻ
ٻ
ٻ
ڍڋٻ
ٻ
(7)
Nature an
d risks associated with
interests in u
nconsolidated structu
red entities
1)
Nature of interests in unconso
lidated structured entities of the Group as of D
ecember
31, 2021 is as follows.
Descript
ion
Purpose
Nature of busines
s
Method of
funding
Total assets (*)
(In millions of Korean Won)
Asset
securitization
SPC
Fund
raising
through as
set-
securitization
Fund
collection
Asset
Backed
Securities and
others
୸
138,514
Investment fu
nd
Investment t
rust and
others
Fund
management
and operation,
distri
bution of
operating profi
t
and others
Beneficiary
(Investment)
certificates
9,874,54
3
Structured Fi
nance
Fund rais
ing
through pr
oject
financing
Project
financing
for construct
ion
project and
ship invest
ment
Project
financing
and others
19,48
7,943
(*) The financial
informati
on
of unconsol
idated st
ructured e
ntity includes unaudi
ted amou
nts.
Nature of interests in unco
nsolidated structured entiti
es of the Group as of Decem
ber 31, 2020 is as follows.
Descript
ion
Purpose
Nature of busines
s
Method of
funding
Total assets (*)
(In millions of Korean Won)
Asset
securitization
SPC
Fund raisi
ng
through as
set-
securitization
Fund
collection
Asset
Backed
Securities and
others
୸
3,111,224
Investment fu
nd
G
Investment trus
t and
others
Fund
management
and operation,
distri
bution of
operating profi
t
and others
Beneficiary
(Investment)
certificates
13,199,533
Structured Fi
nance
Fund raisi
ng
through pr
oject
financing
Project financi
ng
for construct
ion
project and
ship invest
ment
Project
financing
and others
8,900,659
(*) The financial
informati
on
of unconsol
idated st
ructured e
ntity includes unaudi
ted amou
nts.
2)
Risks a
ssociated with interests
in an unconsolidated structur
ed entity of the Group as of
December 31, 2021 are as
follows.
Description
Financial
support
provided
to the structu
red entity
Maximum amount
of exposure to l
oss
of the structured
entity
Book value in
the
structured
entity
Method
Purp
ose
(In millions of Korean Won
)
Asset
securitization
SPC
୸
18,797
Loan
obligation
s
Loan
agreement
(Credit line)
୸
24,000
Investment fu
nd
G
178,552
Beneficiary
certificates,
Investment tr
ust
Invest
agreement
178,552
Structured Fi
nance
826,220
Loan
obligation
s
Loan
agreement
(Credit li
ne)
1,117,599
ٻ
ٻ
ٻ
ٻ
ڍڌٻ
ٻ
Risks associated
with interests in an
unconsolidated structur
ed entity of the Group as of December 31, 2020
are as
follows.
Description
Financial
support
provided
to the structu
red entity
Maximum amount
of exposure to l
oss
of the structured
entity
Book value in
the
structured
entity
Method
Pur
pose
(In millions of Korean Won
)
Asset
securitization
SPC
୸
13,909
Loan
obligation
s
Loan
agreement
(Credit line)
୸
31,000
Investment fu
nd
G
300,384
Beneficiary
certificates,
Investment tr
ust
Invest
agreement
300,384
Structured Fi
nance
429,519
Loan
obligation
s
Loan
agreement
(Credit li
ne)
682,514
(8) Significant restr
ictions on the subsidiar
ies
As of December 3
1, 2021, H
yundai C
ard Co., Lt
d., subsidi
ary of the C
ompany, has
signifi
cant res
trictions that require
it to obtain consent from nominated outside directo
r recommended by non-controlling shareho
lders in the event of
acquiring a com
p
any, entry
into new business
, guarantee, i
nves
tment in s
tocks or c
ontract
s beyond a certa
in amou
nt
and others
.
(9) Changes i
n consolidated
subsidia
ries
Subsidiari
es newly incl
uded in or e
xcluded fro
m consolidati
on for the year ended Decemb
er 31, 202
1 are as foll
ows.
Changes
Name of s
u
bsidiari
es
Descripti
on
Included
Rotem SRS C
o., Ltd.
Establishment
Ý
Hyunda
i Motor
Inve
stme
nt, Inc.
Ý
Ý
Ge
nesis
Motor Deuts
chlan
d Gm
bH (GMD)
Ý
Ý
HYUNDAI MOTOR PHILIPPINES. INC.
(HMPH)
Ý
Ý
Hyundai I
ndia I
nsurance Brokin
g Priva
te Limite
d (HIIB)
Ý
Ý
Autopia Se
venty-Firs
t As
set S
ec
uritization Specia
lty Company
Ý
Ý
Autopi
a Seven
ty-Second
Asset Securitizat
ion Sp
ecialty Comp
any
Ý
Ý
Super Serie
s Tenth
Securitizatio
n Spec
ialty Co.,
Ltd
Ý
Ý
Super Series El
eventh Secu
ritization
Specialty Co.
, Ltd
Ý
Ý
Rotem SRS Ukrai
ne LLC
Ý
Ý
Rotem SRS Egy
pt LLC
Ý
Ý
HYUNDAI THANH CONG VIET NAM
AUTO JOINT VENTURE JOINT
STOCK COMPANY (HTV)
Acquisition
Ý
AirPlug Inc.
Ý
Excluded
Hyunda
i Autron
Company L
td.
Liquidation
Ý
Autopia Sixty
-Third Asset Securitization Specialty Comp
any
Ý
Ý
Hyd
rogen
ic Ener
gy Fund
1,L.
P
Changed to e
quity
method
ٻ
ٻ
ٻ
ٻ
ڍڍٻ
ٻ
2.
SUM
MARY OF SIGNIFICANT ACCOUNT
ING POLICIES:
(1)
Basis of consolidat
ed
financial s
tatements preparation
The consolidated financial s
tatements ha
ve been pre
pared in accordance with
Korea
n International Financial Re
porting
Standards (“K-IFRS”), as p
rescribed in the Act on External Audit of
Stock Companies, Etc in the Repub
lic of Korea.
The significant accounting
p
olicies used for the preparatio
n of the cons
olidated financial statements
are summarized
below. These accounting po
licies are consistent with those applied to the consolidated financial statements for the year
ended December
31, 202
0, except for the
adoption effect o
f the
new accounting st
andards and
interpret
ations des
cribed
below.
1)
New and revised standar
ds tha
t have been appli
ed fro
m the year begi
nning
on Janua
ry 1, 2021 are
as follows.
The Group appli
ed Phas
e 2 of
Interest Rate Benchmar
k Reform
(A
mendments to K-IFR
S 1109
‘Financial Ins
trument
s’
,
K-IFRS
1039
‘Financial
Instr
u
ments: Recogni
tion an
d Measurement’
, K
-IFRS 1107
‘Financial Instru
ments:
Disclosure
s’
, ‘K-IFRS 1104
‘Ins
urance Contr
a
cts’
and K-IF
RS 1116
‘Lea
ses’
) and
Covid-19-Relat
ed Rent
Concess
ions
(Amendments
to K-
IFRS 1116
‘Leases’
) for the first
time on J
anuary 1,
2021. Thes
e standards and other
new accounting s
tandards effective from J
anuary
1, 2021 do
not have
a material i
mpact on
the Group'
s consoli
dated
financial statements.
2) A number of
new standards
are effective for annual period
s
beginnin
g after Januar
y 1, 2021 a
nd earlier a
pplication is
permitted; ho
wever, the Group has not early adopted them in preparing these consolidated finan
cial statements.
The Group is
currently eval
uating t
he effect of the f
ollowing new or amended s
tandards an
d interpretations, if a
ny, to the
consolidated fina
ncial statements, however,
those standards are not
expected to
have a significant
impact on the Gr
oup’s
consolidated financial s
tatements.
- Proceeds before I
n
tended Us
e (K-IFRS 1016 ‘
Pr
operty
, Plant and Eq
uipment
’)
- References to C
onceptual Fr
amework (K-IF
RS 1103 '
Busines
s Combi
nations
’)
- Classi
fication of Liabilities as
Current or No
n-current (K-I
FRS 1001
‘Present
ation of Fi
nancial Statements
’

- K-IFRS
1117
‘Insur
ance Cont
racts’
and i
ts amendme
nts
- Cost of F
ulfilli
ng a Contract
(K-IFRS
1037 ‘
Provisions, C
ontingent Liab
ilities and C
ontingent Ass
ets
’)
- Deferred Tax related to As
sets and Liabilities
arising from a Single Trans
action (K-IFR
S 1012 ‘
Income Taxes
’)
- K-IFRS
Annual Impr
ovements
2018-2020
- Discl
osure of Accounti
ng pol
icies
(K-IFRS 1001 ‘
Pr
esentation of Financial
Statements
’
)
- Definition of Accounting est
imate (K-IFRS 1008 ‘
Accounti
ng Policies
, Changes
in Acco
unting Est
imates
and Err
ors
’)
- COVID-19-R
elate
d Rent C
oncessions
beyond 30 June 202
1 (Amendment t
o IFR
S 16
‘Lease
s’
)
The consolidated
financial s
tatements
were approved
by the Board of Direct
ors on J
anuary
25, 2022 and a
re
expected to be s
ubmitted
for the Company's annual
general
meeting of shareholde
rs.
(2)
Basis of meas
urement
The consolidated
financial st
atements have
been prepare
d on the
historical c
ost basis exc
ept as otherwise stated in
the
accounting pol
icies bel
ow. Hist
orical cost i
s usuall
y measured at the fair val
ue of the c
onsideration gi
ven to acq
uire th
e
assets.
(3)
Basis of cons
olidations
The consolidated financial statements in
corporate the financial statements of the Company and entities (
including
structured en
tities) controlled by the Co
mpany (or its subs
idiaries). Control is achiev
ed when the Company:
x
has power over
the investee;
x
is exposed, or has
rights, t
o va
riable returns f
rom its involve
ment with the inves
tee; and
x
has the ab
ility to use its power to af
fect its returns.
The Group reasses
ses whether or n
ot it controls an inves
tee if
facts and circumstances
indicate that there are ch
anges to
one or more
of the three el
ements
of control l
isted above
.
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When the Group has less th
an a majority of the voting rights of an investee, it has po
wer over the investee when the voting
rights are suf
ficient to give it the pr
actical ability to dire
ct the relevant activities of
the investee unilaterally
. The Gro
up
considers all
relevant facts an
d circumst
ances in asse
ssing whether or
not the Group’s
voting rights in a
n investee are
sufficient
to give it
power, includi
ng:
x
the size of the Group’s
holding of voting
rights relative to t
he size and dispersi
on of hol
dings of t
he other v
ote
holders;
x
potential voti
ng rights
held by the Grou
p, other vot
e holde
rs or other parties
;
x
rights arisi
ng from othe
r contractual arrange
ments; and
x
any additional facts
and circu
mstances t
hat indicate that
the Group
has, or
does not have, t
he current ability to
direct the relev
ant activities at the time that decision
s need to be made, including
voting patterns at previou
s
shareholders’ meetings
.
Income and expens
es of subsidiari
es acquired or di
sposed
of durin
g the period are included
in the consolidat
ed stat
ements
of comprehensive i
ncome from the effect
ive date of acqui
sition and up t
o the effecti
ve date of dis
posal, as appropriate.
When necessary, adjus
tments are made to
the financial statements of subs
idiaries
to bring their accounting policies
into
line with thos
e used by t
he Gr
oup. Al
l intragroup
transactions, balances
, income and expens
es are eliminat
ed in full
on
consolidati
on.
Non-controlling interests are p
resented in the consolidated
statement of financial po
sition within equity,
separately f
rom the equity of the owners of th
e Group. The carrying amount of non-controllin
g interests con
sists of the
amount of
those non-c
ontrolling interests
at the
initial recognition
and
the changes in shares
of the non-c
ontrolling
interests in equ
ity since the da
te of the acq
uisition. Total co
mprehensive in
come is attributed to
the owners of
the Group
and to the non-co
ntrolling interests even
if the non-contro
lling interest has a d
eficit balance.
Changes in the
Group's own
ership interests
in su
bsidiari
es, without
a los
s of cont
rol, are accounte
d for as equity
transactions. The carryin
g amounts of the Group'
s interests and the n
on-controlling inte
rests
are adjusted to reflect the
changes in th
eir relative interests in the subsid
iaries. Any difference between th
e amount by which the non-controllin
g
interests are adjust
ed and the f
air value of the c
onsideration p
aid or received is rec
o
gnized directly in
equity and attribute
d
to owners of
the Group.
When the G
roup loses
control of a
subsidiary, t
he profi
t or
los
s on disp
osal is calculated
as t
he difference
between (i) the
aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous
carrying amount of the assets
(including g
oodwill), lia
bilities of the subsidiary and any non-c
ontrolling interest
s. The
amounts previously
recognize
d in other
c
omprehensive i
ncome and accu
mulated in equity are acc
ounted for as if the
Group had direct
ly dispos
ed of the relevant
asset
s (i.e., reclas
sified to profi
t or loss
or transferred directl
y to retai
ned
earnings as s
pecified by appli
cable K-IFR
S). The fair value of any investment retaine
d in the former subsidiary at t
he
date when control
is lost
is regarded as t
he fair value
o
n initi
al recogniti
on for su
bsequent accounting
under K-IF
RS 110
9
Financial Instr
uments: Recognition and Meas
urement
or, when applicable, the cost on initial recognition of an investment
in an associate or
a jointly controlled entity
.
(4) Bus
iness
combination
Acquisit
ions of b
usiness
es are accounte
d for using the ac
quis
ition method.
The considerati
on transferre
d in a business
combinatio
n is measured at fair value, which is calculated as
the sum of the acquisition-
date fair values of th
e assets
transferred by the G
roup, liab
ilities incurred by the Gr
oup to the for
mer owners of the acquiree and
the equity interests
issued by the Group in exchange for con
trol of the acquiree. T
he consideration includes any asset or liability
resulting
from a continge
nt consideration arran
gement and is
measured at
fair value.
Acquisition-related costs
are recognized in
profit or loss as in
curre
d. When a
business
combina
tion is achieved
in stages
,
the Group's previous
ly held equity
interest in the acquiree i
s re
measured at its fair value at
the acquisition date (i.e., the
date when t
he Grou
p obtai
ns cont
rol) and
the res
ulting
gain or
loss, if any,
is rec
ognized
in profi
t or l
oss. Prior to
the
acquisition date, the amount res
ulting from chan
ges in the value of its
e
quity interest in the acqui
ree that have previous
ly
been recognized
in other c
omprehensive income a
re reclas
sified to profi
t or los
s where s
uch treatme
nt would be
appropriate if t
hat interest w
ere direct
ly disposed
of.
(5)
Revenue
r
ecognition
In accordance with K-IFR
S 1115, all t
ypes of cont
racts re
cognize revenues
by the 5-step re
venue
recognition model (1)
identification
of contract
಺
(2) identification of pe
rformance obligations
಺
(3) calculat
ion of transact
ion price
಺
(4)
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allocation of t
ransaction price t
o performance
obligatio
ns
಺
(5)
recognit
ion of reve
nue when per
formance o
bligation i
s
implemented.
1) Identifi
cation o
f performa
nce obligat
ions
The Group operates
businesses such as the
manufacture and
sale
of auto
mobiles and auto parts. In the automobile sales
contracts with customers, s
ervices othe
r than automobile sales are sep
arately identified as perfo
rmance obligations.
2) Performan
ce obligations satisfied at a po
int in time
Revenue is reco
gnized when
obligations under t
he terms o
f a contract w
ith the G
roup’s
customer are
satis
fied, whic
h
generally occurs
with the tra
nsfer of control of
goods or s
ervices.
3) Performance obligation
s satisfied over time
In asses
sing whether the contr
ol over goods or s
ervices i
s transferred over t
ime, the Group
evaluates w
hether the customer
simulta
neously obtains
and consumes
the benefits
provided b
y the Group’s perfo
rmance, whether the asset
s are controlle
d
by the customer, and whether the assets created by the Group ha
ve
no substitute purpo
se, and whether the Group is entitled
to reimbursement
of cost
s incurred t
o date, incl
uding a reas
onable margin.
4) Allocation o
f transaction pri
ce
The Group allocates the transaction price
to each of the performance obligatio
ns
identified in a single contract in
proportion t
o its stand-alone
selli
ng price. When the st
and
-alone sell
ing price i
s not dir
ectly observable, the Gro
up
estimates the stand-alone
selling price using
the adj
u
sted ma
rket asses
sment approach
,
or the expected c
ost plus
a mar
gin
approach.
5) Variable consideration
The Group estimates
the amounts of consideration usi
ng whichever met
hod (the expected v
alue or the mos
t likely amount
)
that best pred
ict the amount of consideration to which
it will be entitled.
Variable consi
deration is i
ncluded in the
transaction price on
ly to the exte
nt that it
is proba
ble or highl
y pro
bable that a
significant reversal in the
cumulative amount of
reve
nue rec
ognized will not occur in the future periods
.
6) Significant
financing
element
If the period betw
een the transfer of the go
ods or services promis
ed to the customer and t
he payment fr
om the custome
r
is wit
hin one year, the Gro
up does not adjust
the promis
ed am
ount of cons
iderati
on for the e
ffects
of a significant
financin
g
component, as a practical exp
edient.
7) Construct
ion cont
racts
Where the outcome
of a construction co
ntract can be esti
mated reliably,
the contract reve
nue and
contract cos
ts associated
with the construction cont
ract are reco
gnized as re
venue
and expenses, respectively, b
y reference to t
he stage of
completion
of the cont
ract acti
vity at the en
d of report
ing per
iod.
The percentage o
f complet
ion of a c
ontract activity is reli
ably
measured
based on t
he propor
tion of contract cos
ts incurred
for work perfor
med to date rel
ative to the es
timated tot
al contract costs,
by surveys of work performe
d or by complet
ion
of a physical
propo
rtion of t
he contract wo
rk. Variations in
contract work, claim a
nd ince
ntive payments are incl
uded to
the extent that the amount ca
n be measured reliably and it
s receipt is considered proba
ble. Where the outco
me of a
construction co
ntract cannot
be esti
mated reliably, cont
ract revenue is
recognized to the
extent of contract cos
ts incurre
d
that it is probable will be recoverable.
Contract c
o
sts are recognized as
expenses in
the per
iod in which they are incurred.
When it is probable that total contract
costs will exceed total contract revenue,
the expected loss
is recognized as an
expense immediately.
(6)
Foreign c
u
rrency tra
nslation
The individual financial st
at
ements of each e
ntity in the Group are pre
par
ed and p
resented in the currenc
y
of the
primary economic en
vironment in which the entity oper
ates (its function
al currency).
ٻ
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In preparin
g the financi
al sta
tements of the indi
vidual ent
i
ties, transact
ions occurrin
g in
currencies other than
their
functional currency (fo
reign currencies) are
rec
orded usi
ng the exchan
ge rate on the dat
es of the trans
actions. At t
he end
of each reporting peri
od, monetary items denominated in f
oreign
cur
r
encies are translated
usi
ng the exc
hange rate at the
reporting pe
riod. Non-monet
ary items that are meas
ured i
n te
rms of hist
orical cost in a
foreign currency are tra
nslated
using the excha
nge rate at the
date of the transact
ion. Non-
monetary items t
hat are meas
ured at fair value i
n a foreign
currency are
translated us
ing the excha
nge
rates at the date when the fair value was determined. Exchange differences
resulting
from settlement of assets or liab
ilities and translati
o
n of monetary items denominated in foreign currencies are
recognized in p
rofit or los
s in
the period in whi
ch they aris
e except fo
r some except
ions.
Foreign exchange gains or loss
es are clas
sifi
ed in finance income (expenses
) or other income (expens
es) by the nature o
f
the transaction or event.
For the purpose of presentin
g the consolidated financial statements, assets and liab
ilities in the Group’s foreign operations
are translated i
nto Won,
using the excha
nge rates at the end
of reporting pe
riod. Income
and expens
e items are
translated
at the average
exchange rate for t
he period, unles
s the
exchange
rate durin
g
the peri
od has significant
ly fluct
uated, i
n
which case the exchange rates
at the dates
of the transactions are used. The exch
ange differences arising, if any, are
recognized in e
quity as other
comprehens
ive income. U
p
on the
disposal
of a fo
reign op
eration, the
cumulati
ve amount
of the exchange differences relating to th
at foreign operation is reclassified from equity to profit or loss when the gain or
loss on
dispos
al is reco
gnized.
Any goodwill ari
sing o
n the acquisit
ion of
a foreign
operati
on and any
fair val
ue
adjustments to the carryin
g amounts of ass
e
ts and liabilities arising on the acquisiti
on of that foreign
operation are treated
as assets and liabilities o
f the foreign operation an
d translated at the exchange rate at the end o
f reporting period.
(7)
Financial Assets
The Group classi
fies financial assets as
financial assets meas
ured at fair value through profit or loss, financial assets
measured at amortized cost
or financia
l ass
ets measured at f
air value throug
h othe
r comprehensive income accordi
ng to
the terms and purp
ose of acqu
isition. The Group determi
nes th
e classification of a financial asset at initial recognition.
All recognize
d financi
al asse
ts are meas
ured subsequently in
their entirety at
eithe
r amortize
d cost or fair
value, depe
nding
on the classification of t
he financial assets
.
1)
Clas
sification of
financial assets
Debt inst
ruments that meet
the fol
lowing c
onditions are
measured subsequentl
y at amorti
zed cos
t:
x
The financial asset is he
ld within a business m
odel w
hose objective is to hold
financial assets in order to
collect contractual cash flows
; and
x
The contractual
terms of t
he financial asset gi
ve rise on s
pecified dat
es to cash fl
ows that a
re solely payments
of principal
and interes
t on the
principal am
ount out
standing
.
Debt inst
ruments that meet
the followi
ng conditions
are measured subsequently at
fair value
through other com
prehens
ive
income (FVOCI):
x
The financial as
set is
held within a b
usiness
model whose obj
ective is achi
eved by bot
h collect
ing contract
ual
cash flows and s
elling the fina
ncial ass
ets; and
x
The contractual
terms of t
he financial asset gi
ve rise on s
pecified dat
es to cash fl
ows that a
re solely payments
of principal
and interes
t on the
principal am
ount outs
tanding.
By default, all ot
her financia
l ass
ets are measured subse
quently at
fair value thro
ugh pr
ofit or l
oss (FV
PL).
Despite the foregoing, the Group may make the f
ollowing irre
vocable election / desi
gnation at initial recognition of a
financial ass
et:
x
The Group may i
rrevocably elect to present s
ubsequent changes in fai
r value of a
n
equity i
nvestment in other
comprehensive income
if certain criteria are met; and
x
The Group may i
r
revocably
desi
gnate a debt invest
ment tha
t meets the amortized cost o
r FVO
CI criteri
a as
measured at FVPL if doing so
eliminates or
signi
ficantly re
duces
an accou
n
ting mismatch
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1-1)
Amortization cost and effecti
ve interest rate method
The effective interest
method is
a method of calculat
ing the amorti
zed cost of a debt i
nstrument
and of allocating inte
rest
income over the rele
vant peri
od. The amortized cost of a f
inancial asset is
the amount at whi
ch the financial as
set is
measured at initial recognition minus th
e principal repayments, plus the cumulative amortisation
using the effective
interest method of any diffe
rence between that initial amount
and the
maturity amount, a
djust
ed for any loss allowance
.
The gross
carrying amo
unt of
a financial asset
is the amort
ized cost of a fina
ncial as
set before
adjusti
ng for a
ny loss
allowance. Interest
income is
recognized
using t
he effective
i
nterest method fo
r debt i
nstru
ments measured s
ubsequent
ly
at amortized cost and at FVOCI.
1-2)
Debt instruments class
ified as at FVOCI
Corporate b
onds are initially measured
at fair value plus tran
saction co
sts. Subsequently
, changes in th
e carrying amount
of these corp
orate bonds as a
res
ult of foreig
n exchange gain
s and los
ses, impai
rment gains
or loss
es, and interest inco
me
calculated us
ing the effective interes
t method are recognized in profit or loss
. The amount
s that are recognized i
n profit
or loss are the s
ame as the amounts that would have been re
cognized in profit or loss
if these corporate bonds
had been
measured at amortized c
ost. All other changes in the car
rying amount of these cor
porate bonds
are recognized i
n other
comprehensi
ve income
and accumulate
d in investment
s revaluation
reserve
. When t
hese corp
orate bon
ds are
derecognized, t
he cumulati
ve gains or
losses previously
recognized
in other comprehensi
ve income are reclass
ified to
profit or lo
ss.
1-3)
Equity inst
ruments
designate
d as at FVOCI
On initial recognition, the Group may make
an irre
vocable election (on an ins
trument
-by-instrument basis) to des
ignate
investme
nts in equity
instrume
nts as at FVO
CI. Designatio
n at FVO
CI is not pe
rmitted i
f the equity
investmen
t is held
for trading o
r if it is contingen
t consideration recognize
d by an acquirer i
n a busi
ness combinat
ion.
Investm
ents in equity instr
uments at FVOCI are initially
measured at f
air value plus transaction co
sts. Subsequen
tly, they
are measured at fair value w
ith gains
and losses
arising from changes
in
fair value reco
gnized in other com
prehensive
income and accumulated in
the investments revaluation
reserve. The cumulative gain
or loss will not be reclassified
to
profit or los
s on dispos
al of the equity in
vestments
, instead, it
is trans
ferred to retaine
d earnings
.
1-4)
Financial assets measured at FVPL
Financial assets that d
o not meet the criteria for
b
eing measur
ed at amortized cos
t or FVOCI are
measured at FVPL. Gains
or losses
arising from c
h
anges
in the fair val
ue of FVPL,
dividends an
d interest
income
from the fina
ncial assets are
recognized in p
rofit or los
s.
2) Foreig
n exchange gain / loss
The carrying amount o
f a financial asset designated as
a fore
ign currency is determined in foreign currencies and is
translated at the spot exchange
rate
a
t the
end o
f the r
epor
ting p
er
iod.
(8)
Impairme
nt of financi
al ass
ets
The Group recogni
zes a loss
allowance for e
xpected credit
losses
on investments
in debt i
nstruments t
hat are measure
d
at amortized cost or at FVOCI, lease r
eceivables, trade receivables
and contract
assets
, as well as on financial guarantee
contracts. The amou
nt of expected credit los
ses is updated
at
each rep
orting date to refle
ct changes in credit risk
since
initial recognition of the res
pective financial inst
rument.
The Group always rec
ognizes lifetime ex
pected credit los
ses (EC
L) for trade r
eceiva
bles, contract assets and leas
e
receivables. The EC
Ls on the
se financial assets
are estimated
using
a pro
vision matrix
based on the Grou
p’s historical
credit loss
experience a
nd valuation of i
ndividual
assets, adjusted fo
r factors that are s
pecific t
o the de
btors, general
economic conditions an
d an ass
essment of forecast on pres
ent
and future conditions reflecti
ng time value
of money where
appropriate.
For all ot
her financi
al i
nstrument
s, the G
roup rec
ognizes
life
time EC
Ls when there
has been
a s
ignificant increase i
n
credit risk since initial recogniti
on. However, if the credit ris
k on the financ
ial instrument h
as not
increased significantly
since initial recognition, t
he Group meas
ures
the los
s allowance for that
financial instrument at an am
ount equal
to 12-
month ECLs.
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Lifetime ECL represen
ts the expected credit
losses that will result from all possible d
efault events over the expected life
of a financia
l ins
trument.
In cont
rast, 12-
month EC
L represe
nts
the portion of lifetime ECL that is expected
to result from
default events o
n
a financi
al i
nstrument that
are poss
ible wit
hin 12 mont
hs after the reporti
ng date.
1) Significant increase in credi
t risk
In assess
ing whether the credit risk on a
financial instru
ment has increased s
ignificantl
y sin
ce initial recognition, the
Group compares t
he risk of a
default occurring on t
he finan
cial ins
trument at the re
portin
g date with the ris
k
of a
default
occurring on the f
inancial instrumen
t at the date of initial recognition.
In particular, the f
ollowing
informatio
n is taken i
nto account when asse
ssing w
hether credit risk has
increased
significantly
since initial recognitio
n:
x
an actual or expected significant deterio
ration in the financial instrumen
t’s external (if available) or internal
credit rating
;
x
other sign
ificant increases in cred
it risk;
2) Definiti
on of de
fault
The Group believes that
, based on past experi
ence, if the debt
or violates t
he terms of the contract
, it is cons
idered to
constitute a default ev
ent for internal credit risk managem
ent purposes.
3) Credit-imp
aired financial assets
A financial asset is credit-im
paired when o
ne or more events that have a detrimental im
pact on the estimated
future cash
flows of that fi
nancial ass
et have occu
rred. Evidence that
a financial asset is
credit-impaired
includes the f
ollowing
observable data:
(a)
sig
nificant finan
cial difficulty of the issuer or the borr
ower;
(b)
a breach of contract, s
uch as a default
or past
due event as de
fined by the Group’s inte
rnal
policy;
4) Measurements and reco
gnition of expected credit los
ses
The measurement of ECLs is a function of the probab
ility of defa
ult, loss giv
en default (i.e. the magnitud
e of the loss if
there is a default) and the exposure at d
efault. The assessment of th
e probability of default and loss giv
en default is based
on historic
al data adj
usted by forward-lo
oking informatio
n as des
cribed abo
ve. As f
or the ex
posure at
default,
for fina
ncial
assets
, this is repres
ented by the as
sets
’ gross carrying am
ount at the reporting
date.
For financial assets, the EC
Ls are estimated as the difference
between all contractual cash f
l
ows that are due to the Group
in accordance with the c
ontract and all
the
cash flows
that the
Group ex
pects to receive, disc
ounted at the origi
nal effective
interest rate.
If the Group
has measured
the los
s allowance for a
financial instrument
at an amou
nt equal
to lifeti
me ECLs in the
previous re
porting peri
od, but determines at
the current re
porting date that the c
onditions for l
ifetime EC
Ls are no longer
met, the Group measur
es the loss allowa
nce at an amount equal to
12-month EC
Ls at the current reporting date, except
for financia
l asse
ts for which
a simplified approach i
s used.
The Group recog
nizes an impairment
gain or los
s in profi
t or loss
for all financial
instruments
with a correspondin
g
adjustment t
o their carrying a
mount through a loss
allowance a
ccount
, except for inves
tment
s in debt ins
truments t
hat are
measured at FVOC
I, for whic
h
the loss allowance is recognized in other comprehensive income and accumulated in the
investment reval
uation reserve
,
and does not reduce the carrying amou
nt of the financial
asset in the s
tatement of financi
al
positi
on.
ٻ
ٻ
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ڍړٻ
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(9) Derecognition of financial assets
The Group de
recognizes a fi
nancial
asset onl
y when the c
ontractual rights to t
he cash flows f
rom the as
set expire,
or when
it transfers the financial asset and sub
stantially all the risks
and rewards of ownership of the asset to another entity. If th
e
Group neithe
r transfers
nor r
etains
substant
ially al
l the risk
s
and rewards of ow
nership a
nd contin
ues to control
the
transferred ass
et, the Group re
cognizes its retained interes
t in
the as
set and an ass
ociated liability for
amounts it may have
to pay. If the Gr
oup retains subs
tantial
ly all the ris
k
s and re
wards of owne
rship of a transf
erred financi
al ass
et, the Grou
p
continues to recognize t
he financial asse
t and also recognizes a collateralized
borrowing for
the proceeds received.
On derecognition o
f a financial asset meas
ured at amortized cost, the difference betw
een the ass
et’s carrying amount and
the sum of the consideration received and receivable is recognized in profit or loss. In addition, on derecognition of an
investment i
n a debt instrum
ent classi
fied as at FVOCI, the cumulative gain
or loss prev
iously accumulated
in the
investmen
ts revaluation
reserve is reclassified to profit or lo
ss. In contras
t, on derecognit
ion of an in
vestment i
n equity
instrumen
t which the Group has elected on initial recognitio
n to measure at FVOCI, the cumulative gain or loss prev
iously
accumulated in the investments
revaluation
reserve is
not reclassified to profit or
loss
, but is transferred to retained
earnings.
(10) Inventory
Inventory is
measured at the
lower of cost or net
realizab
l
e value. Invent
ory cost
, including the fi
xed and variable
manufacturing ove
rhead cost, is calcul
ated, using t
he moving average method, except fo
r the cost for inventory in trans
it,
which is determ
ined by the specific identif
ication method.
(11) Investment
s in ass
ociates and joi
nt ventures
An associat
e is an entity over which t
he Group has signi
ficant i
nfluence, but not a joint
venture or a s
ubsidiary. Si
gnificant
influence is t
he power
to part
icipate in the
financial and ope
rating policy decisi
ons of the
investee, but is
not co
ntrol or
joint contro
l over those policies.
A joint ventur
e is a joint arrangement, whereby the parties that
have j
oint cont
rol of the
arrangement
have rights to
the
net assets of the join
t arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only wh
en decisions about the r
elevant activities require unanimou
s consent of the parties sharing contro
l.
The investment i
n an ass
ociate or a joint
venture is initial
ly recogni
zed at cos
t and accounte
d for using the equi
ty method
.
Under the equity method, an invest
ment
in an associate or a joint venture is
initially recognized in the consolidated
statement of financial position at cos
t and
adjusted thereafter
to rec
ognize the Group'
s share of the profit or los
s and other
comprehensi
ve income of the
ass
o
ciate or the joint vent
ure.
When the Group's
share of losses of an ass
ociate or a joint venture exceeds the Group'
s interest in that associate or j
oint
venture (which i
ncludes any long-te
rm interes
ts that, i
n subs
tance, form
part of the
Group's net inves
tment in
the associat
e
or the joint venture
), the Group discontinues
recognizi
ng its s
hare of further los
ses. Addi
tional loss
es are recognized onl
y
to the extent that
the Group has incurred legal
or constructiv
e obligations or made paymen
ts on behalf of t
he associate or
the joint ven
ture.
Investment in as
sociate or joint vent
ure is accounted fo
r usin
g the equity method fro
m the date that the inves
tee becomes
the associat
e or joint venture
. Any exces
s of the cost of ac
quisition over the G
roup'
s share of the net fai
r value of th
e
identifiable assets, liab
ilities and co
ntingent liabilities of an
associate or a joint ven
ture recognized at
the date of acquisition is
recognized as goodwill, which
is included within the
carrying amount of the inves
tment.
Any excess of the Group'
s share of the net fair value of th
e
identifiable assets, liabilities and conti
ngent liabilities over
the cost of acquisition
, after reassessment, is reco
gnized immediately in
profit or loss.
The requirements
of K-IFRS 1028 are appli
ed to det
ermine whet
he
r it is
necessary to reco
gnize any im
pairment loss
with
respect to the Group
’s invest
ment in an ass
ociate or a joint ve
nture. When there is any indi
cati
on of impairment
, the entire
carrying amount of the inves
tment (incl
uding goodwill) is
tested for impairment
in accor
dance with K-IFRS 1036 as a
single as
set by comparing its
recoverable amount
(higher o
f value in use and fair val
ue less
costs of dispos
al) w
ith its
carrying amount. Any impair
ment loss rec
ognized is
not allocated to any asset,
including goodwill that forms part of the
carrying amount of the inves
tme
nt. Any reve
rsal of that impairment loss is recognized in accordance with K-IFR
S 1036
to the extent that t
he recoverable amount
of the inves
tment s
ubsequently increases.
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ڍڔٻ
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Upon disposal
of an associate or a j
oint venture that
results i
n the Group losin
g significant
influence over that associ
ate
or joint venture, any retained investm
ent is measured at fair
value at that date and the fair valu
e is regarded as its fair
value on initial recognition as
a financial
ass
et in accordance with K-IFR
S 1109.
The di
fference between the previous
carrying amount
of the associate or joint venture at
tributabl
e to the retained int
erest and i
ts fair value is included in the
determinatio
n of the gain or loss on d
isposal of the asso
ciate or joint ven
ture. In addition, the Group accounts fo
r all
amounts previ
ously recogni
zed in other co
mprehensive income in rela
tion to that as
sociate or joi
nt venture on the s
ame
basis we would
be required if that associate or joint venture ha
d directly disposed of the related assets or liab
ilities.
Therefore, if a gain or l
oss previously recognized i
n other co
mprehensive inc
ome by that as
sociate or joint venture would
be reclassified to
profit o
r loss on th
e disposal of
the relate
d assets or liab
ilities, the Gro
up
reclassifies the gain
or loss
from equity to profit o
r loss (as reclassification ad
justment) wh
en it loses s
ignificant
influence
over that
associate or joint
venture. When t
he Group
reduces it
s ownershi
p interest i
n an ass
ociate or a joint
venture, but the Gr
oup continues
to use
the equity meth
od, the Group
reclassi
fies to profit
or loss the pro
portion of the gain or l
oss that
had previous
ly been
recognized in
other comp
rehensive income rel
ating t
o that reduction i
n ownership interes
t if that gai
n or loss
would be
reclassified to p
rofit or loss on the disp
osal of the related assets or liabilities. In
addition, the Group app
lies K-IFRS 110
5
to a portion of inv
estment in an associate o
r a joint venture
that meets the criteria to be
classi
fied as held for sale.
The Group continues to use the equity method when an investment in an associate be
comes an investment in a joint
venture or an inves
tment in a joi
nt venture bec
omes an inve
st
ment in an ass
ociate. Ther
e is no rem
easurement to fair
value upon such
changes i
n ownership i
nterests
.
Unrealized gains fr
om trans
actions betw
een the Group a
nd it
s associat
es or joint vent
ures are el
iminated up to the
shares
in associat
e (joint venture
) stocks. Un
realized loss
es are also e
liminated, unless evid
ence of impairmen
t in assets
transferred is
produced.
If the accounting pol
icy of as
sociat
es or joint ve
ntures differs
from the Group, financi
al
statements
are adjusted accord
ingly bef
ore applyin
g equity method of acco
unting.
(12)
Property, pl
ant and eq
uipment
Property, pl
ant and equi
pment
is recognized i
f, and o
nly if it i
s probable that future ec
onomic benefit
s ass
ociated with t
he
asset will flow to the Gr
oup, and the cost of the asset can be measured reliably
. After the initial recognition, proper
ty,
plant and equipment is stated at cos
t
less accumulated depreciation and accu
mulated impai
rment loss
es. The cost includes
any cost directly
attributable to bringing th
e asset to the
location and condition necessary
for it to be capable of operating
in the mann
er intended b
y managemen
t and the initial estimate o
f the costs of
dismantlin
g and removin
g the item and
restoring the s
ite on which i
t is located. In additi
on, in case the recognition crit
eria are met
, the subsequent cos
ts will be
added to the carryin
g amount of the asset
or recognized as
a separate as
set, and the carryi
ng amount
of what was repl
aced
is derecognized
.
Depreciation i
s computed us
ing the straight-line met
hod based on the es
timated useful
lives
of the asse
ts. The
representative useful lives are
as follows.
Representative useful lives (years
)
Buildings
and structures
12 – 50
Machinery and eq
uipment
6 – 15
Vehicles
6
–
1
5
Dies, mold and t
ools
4 – 6
Office equipme
nt
3 – 15
Other
2
–
20
The Group reviews
the depr
eciation method, t
he estimated us
eful lives
and residual
values of property, plant
and
equipment at the end o
f each annual rep
orting peri
od. If expectat
ions differ fr
om previo
us estimates, the changes are
accounted for as a c
hange in accounting es
timate.
(13) Investment properti
es
Investment pr
operties are pro
perty held to earn rentals or
f
o
r capital appreci
ation or b
o
th. Inves
tment prope
rties are
measured in
itially at its cost and transactio
n costs are included in the initial measurem
ent. After initial recognition, the
book value of in
vestment pro
p
erties i
s presented at
the cost less
accumulated depreciat
ion and accumulat
ed impairme
nt
losses.
Subsequent c
o
sts are reco
gnized as the carryi
ng amount of the as
set when
, and
only when it
is
probable that
future
economic benefits ass
ociated with the asse
t will flow to the Group, and the cost of
the asset can be measured reliably,
or
recognized as a separate as
set if appropriate. T
h
e
carrying amount
of what was
replaced is derecognized.
ٻ
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ڎڋٻ
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Land is not depreciat
ed, and other inves
tment pro
perties are
depreci
ated using the s
traight-line met
hod over the perio
d
from 20 to 50 years
. The Gr
oup reviews
the depreciation
method, the estimated usef
ul lives and res
idual values at the
end of each annual reporting period.
If
expectations differ
from pre
vious estim
ates
, the changes are accounted for as a
change in accounting estimate.
(14)
I
ntangible assets
1)
Goodwill
Goodwill arising from a business
combinati
on is recognized as an asset at the time of obtaining control (the acquisition
date). Goodwill is meas
ured as the e
xcess of the a
ggregat
e of the c
onsideration trans
ferred,
the amount
of any
non-
controllin
g interest in th
e acquiree and the acq
uisition-date f
air value of the Gr
oup’s previously h
eld equity in
terest in the
acquiree over the net of the acquisition-da
te amounts of th
e identifiable assets acquired and the liabilities assum
ed.
If, after reassessmen
t, the net of th
e acquisition-date amoun
t
s of the identif
iable assets acquired
and the liabilities assu
med
exceeds the aggregate of the cons
ideration
transferre
d, the amount of any non
-contro
lling interest in the acquiree, and the
acquisition-date fair val
ue of the Group’s
previously hel
d
equity interest in t
he acquiree, the exces
s is recognize
d
immediately in p
rofit or los
s as a bargain
purchase gain.
Goodwill is not amortized,
but tested for impair
ment at leas
t annually. For purposes
of impairment
tests, goodwill is
allocated to
those cash-
generating units
(“CGU”) of
the G
roup
ex
pected t
o have sy
nergies f
rom the business
combinati
on.
CGU that goodwill has been
allocat
ed is tested for impairment eve
ry year
or when an event
occurs that indicates
impairmen
t.
If the recov
erable amount of a CGU is less than its carr
ying amount, th
e impairment will first decrease the g
oodwill
allocated to that CGU an
d the rema
ining imp
airment will be allocated among
other assets relative to its car
rying v
alue.
Impairm
ent recognized for goodwill may not b
e reversed. When disposing a sub
sidiary, related goodwill will be in
cluded
in gain or los
s from di
sposal.
2)
Development c
osts
The expenditur
e on researc
h is recognized as an
expense when it i
s incurred.
The expenditure
on development i
s
recognized as an i
ntangible a
sset, and amortization i
s comput
ed using the s
traight-l
ine method bas
ed on the es
timated
useful lives of the ass
ets since the
ass
et is available for use or s
ale.
Research and development activities are conducted in phases of preceding research, developmen
t approval, product
development an
d mass producti
on. The Gro
up generally
rec
ognizes intangi
ble assets as development
activities after the
development appr
oval phases which product
specificati
on, releas
e schedule, and sales plan are establ
ished. Expenditur
e
incurred at the previous
phase
is recognis
ed as an expense as
it is consider
ed as research ac
tivitie
s wh
en it is incurred.
3)
Intangible assets acq
uired separately
Intangible assets are m
easured initially at cost, and are subs
equently measured at cost less accumulated amortization and
accumulated impairment loss
es.
Intangib
le assets are amortized by th
e straight-line method based on
estimated useful liv
es from the date of availability
.
The Group reviews the estim
ated useful li
fe an
d amortizat
ion method at t
he end
of each annual
reporting
period. If
expectations differ fr
om previ
ous estimat
es, the changes are
accounted
for as a chan
ge in accounting estimate. In
tangible
assets asses
sed as having
indefinite useful
life such as club
membership
are subjected
to impairment
test at least o
nce a
year without amortizatio
n.
The representative us
eful
lives are as follows
.
R
epresentative useful lives
(years)
Development c
osts
3, 7
Industria
l propert
y rights
5 – 10
Software
3
–
7
Other
5 – 40
ٻ
ٻ
ٻ
ٻ
ڎڌٻ
ٻ
(15) Impair
ment of no
n-financial as
sets
The Group asse
sses at the end
of each
reporting
period whet
he
r there is
any indication that
an asset may be impaired.
I
f
any such indi
cation exi
sts, t
he Group estimate
s the rec
overable amou
nt of the as
set to
determine the extent o
f the
impairment loss
. Recoverable amount is t
he higher of fair v
alu
e less costs to sell
and value in use. If the cash i
nflows of
an individual
asset are l
argely i
ndependent from
other assets
or group of as
sets
, the recov
erable amount i
s measured
for
that individual
asset
; otherwis
e, it is measured for t
he
cas
h generating uni
t (CGU) t
o which the ass
et belongs. An
impairment loss in res
pect of
goodwill is
not reversed. For
other assets
, impairment
los
s is
reversed if the
recoverable
amount increas
es in s
ubsequent
years, but
only to t
he extent
that the asset’s carryi
ng amou
nt does not e
x
ceed the carryi
ng
amount that
would ha
ve been determined,
net of
depreciation
or amorti
zation, if
no impairment loss
had been reco
gnized.
Intangib
le assets with indefinite u
seful lives or in
tangible as
sets not
yet available for us
e are not amort
ized, but t
ested fo
r
impairmen
t annually.
(16)
Non-current ass
ets classified as held for s
ale
The Group classifies
a non-current ass
et (or
disposal gro
up) as held for sale, if
its carrying amount will be recovered
principally thr
ough a sale transact
ion rather than t
hrough cont
inuing us
e. For this to be the case, t
he asset (or di
sposal
group) mus
t be availabl
e for i
mmediate sal
e in its
present c
ondition s
ubject onl
y to terms
that are usual and cus
tomary
for sales
of such
assets (or di
sposal gr
oups) and its
sale mus
t be highly
probable
. The management
must be commi
tted
to a plan to sell the asset (or disposal
group), and the s
ale should be expected
to qualify for recognition as
a complete
d
sale within one y
ear from th
e date of clas
sification.
Non-current as
sets
(or dis
posal
group) cl
assifi
ed as hel
d fo
r
sale are measured at the
lower of their
carrying amount and
fair value, less co
sts to sell.
(17) Lease
At contract inception, t
he Group assess
es whether a contract
is or contains a leas
e.
A contract is
, or contains, a lease i
f
the contract conveys
a right t
o control the
use of an i
dentifie
d asset for a peri
od of time
in exchange for considerati
on.
When asses
sing whether the contract conveys
a rig
ht to contro
l the
use of an identified asse
t, definition
of a lease unde
r
K-IFRS
1116 has been appli
ed.
1) As a less
ee
At inception or effective date of change, the Group allocates the consideration in the contract to each lease on the basis
of their relative stand-alo
ne prices
. However, for leases of
pr
operties in
which it is a lessee, the Group has elected no
t to
separate non-lease comp
onents and will instead accou
nt for
the lease and non-lease comp
onents as a sin
gle lease
component.
The Group recognizes a right-of-use asset and lease liability
at
the lease commenceme
nt date
. The righ
t-of-use asset is
initially measur
ed at cost, which comprises the in
itial amount of
the lease liability adju
sted for any lease paymen
ts made
at or befo
re the commencement date, p
lus any initial direct co
sts incurred
and an estimate of
costs to dismantle an
d remove
the underlying ass
et or to rest
ore the underl
ying asset or the
site on which it is located, less
any lease incentive received.
The right-of use asset is subsequen
tly depreciated using the straight-line meth
od from the commencement date to the end
of the lease term,
unless the leas
e transfers ow
nership of t
he underlyi
ng asset to the Group
by the end of the lease t
erm or
the cost of the r
ight-of-use asset reflects that th
e Group will
exercise a purchase option. In
that case the right
-of-use ass
et
will be depr
eciated over the useful life of the underlying asset, which is determined on the same basis as th
ose of property
and equipment. In addition, the righ
t-of use asset is periodically reduced by impairment losses, if any
, and adjusted for
certain remeasurements of
the lease liability.
The lease liability is initia
lly measur
ed at the present v
alue of
the lease payments that are not paid at th
e commencement
date, discount
ed using the int
erest rate implicit
in the lease or, if that rate cannot be readi
ly determined, the Gro
up’s
incremental borro
wing rate. Generally, the Group uses its incremental borrowin
g rate as the discount rate.
When the lease liability
is remeasured
, a corresponding adjust
ment is made to
the carrying amount of the right-of-use
asset, or i
s recorded i
n profit o
r loss i
f the carrying am
ount o
f the right-of-
use asset has been reduce
d to zero.
ٻ
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ڎڍٻ
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The Group has elected not to recognize right-of-use assets and lease liabilities for leases of
low-value assets and short-
term leases. The Group rec
ognizes the lease payme
nts associated
with these leas
es as an expense o
n a straight-line
basis
over the lease term.
2) As a les
sor
The accounting pol
icies appl
icabl
e in the same peri
od to the Group as
a lessor are not different
from thos
e under K-IF
RS
1116. When the Group acted
as a lessor, it determined at l
ease inception whether each lease was
a finance lease or an
operating lease. To class
ify each leas
e, the Group made
an overall assess
ment of whether the lease transferre
d
substant
ially all
of the risks and rewards inci
dental to own
ership of t
he underlying as
set. If t
his was the cas
e, then the
lease was a finance lease; if not,
then it was
an operating lease.
Amounts due from less
ees under finance l
eases are recognize
d as receivables at th
e amount of the Group’s net investment
in the leases. Fi
nance leas
e interes
t income is allocat
ed to account
ing peri
ods so as to
reflect an effective interes
t rate
on
the Group’s net
investment
outstanding in res
pect of the
leases. Rental income fr
om operating leases
is recognized
on a
straight-line b
asis over the term of the relevant lease. Initial direct costs incurred in negotiating and arrang
ing an operati
ng
lease are added to
the carryi
ng amount o
f the carryin
g amount of invest
ments in
operati
ng leases and reco
gnized as
expense on a st
raight-line
basis over t
he lease term.
(18) Borrow
ing
costs
Borrowing c
osts directly att
ributabl
e to the
acquisit
ion, cons
truction
or product
ion of
qualifying asset
s are capital
ized to
the cost of those ass
ets, until they are
ready for their intende
d use or sal
e. A qualifying ass
et is an asset
that necessaril
y
takes a subs
tantial period of time to get ready for its
intende
d use or sale. Inves
tment income earned on the temporar
y
investment of s
p
ecific borrow
ings pending their ex
penditur
e on qualifying asse
ts is
deducted from t
he borrowing costs
eligible for capit
alizati
on. All
other borrowi
ng costs
are recognized in profit
or loss i
n the period
in which they are
incurred.
(19)
Retirement b
enefit plans
The retirement
benefit obl
igation reco
gnized in the consoli
dated statements of fi
nancial position rep
r
esents t
he present
value of the defined be
nefit obligation, les
s the fair value of
plan asse
ts. Defi
ned benefit ob
ligations are calculated by an
actuary using t
he Projected U
nit Credit Method.
The present val
ue of t
h
e defined be
nefit obligations
is mea
sured by di
scount
ing estimat
ed futu
re cash out
flows b
y the
interest rat
e of high-qualit
y corporate bon
ds, with s
imilar maturity as
the expected post
-employment bene
fit payment date.
In countries where there i
s no deep market i
n such bonds
, the market yields at the end of the report
ing period on
government b
onds are
used.
The remeasuremen
ts of the net defined
benefit liabilities (asset
s) comp
rising actuarial
gain or
loss from changes in
actuarial assumptions or dif
ferences betw
een actuarial ass
umptions and act
ual resu
lts, the effect o
f the changes to the
asset ceiling and return on plan assets, exclu
ding amounts included
in net interest on the net defined benefit liabilities
(assets
), are recognized in ot
her comprehensive inc
ome of t
he consolidated
statements
of comprehensive income
, which
is immediately recognized as retained earni
ngs. Those recognized in retained earnin
gs
will not be reclassified in profit
or loss. Past s
ervice costs are recognized
i
n profit and loss when
th
e plan amendment occurs, and
net interest is calcu
lated
by applyi
ng the
discount rat
e determine
d at the begi
nning
of the
annual reportin
g peri
od to t
he net
define
d benefi
t
liabili
ties (ass
ets). Defined benefit cos
ts are composed of s
ervice cost (including current s
e
r
vice cost,
past serv
ice cost,
as well as gains and
losses on settlemen
ts), net
interest expense (income), and remeasurements.
The retirement
benefit obl
igati
on recognized i
n the consol
idated s
tatements of fi
nancial positi
on represents
the actual
deficit or su
rplus in the Group’
s defined benefit
plans. An
y su
rplus resu
lting from this calculation
is limited to the present
value of any economic
benefit
s available in the form of refun
d
s from the plans
or reducti
ons in fut
ure contributi
ons to the
plans.
Contribut
ions to defi
ned cont
ribution retirement
benefit pl
ans are recognized as expens
es when employees provi
de
services eligible for
payment.
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ٻ
(20) Provi
sions
A provision i
s recognized whe
n the Group has a present
obligation (legal
or constructive
) as a result of a past event, it is
probable that an outf
low of resources embody
ing economic benefits will be required
to settle the obligatio
n and a reliable
estimate can be made of t
he amount o
f the obligatio
n. The amount recognized as a p
rovis
ion is the bes
t estimat
e of the
consideration re
quired to settle
the present obli
gation at
the end of the repo
rting peri
od, taki
ng into account
the risks
and
uncertainties
surrounding t
he obligati
on. A
provision is
measured using t
he present
value of the
cash fl
ows est
imated to
settle t
he present obligat
ion.
The increase in p
rovision
due to pas
sage of time is
recogniz
ed as interest expense.
The Group recognizes
provisions for cos
ts expected to
be incurred
in the future for the re
pair of regular parts within the
warranty peri
od based
on historical experience
and compensat
ion for accide
nts caused by de
fects in the e
xported product
s
or parts of the p
roduct when
such amounts are pr
obable of payment. Als
o
, the Group recogni
zes provis
ions for th
e
probable los
ses of u
nused loan commitment
, const
ruction c
ontracts, pre
-contract sale or s
ervice contract due t
o legal
or
constructive o
bligations
. In a
dditi
on, the C
ompany recogni
zes
provisions
expected to
be paid in the
future wit
h regard t
o
long-term empl
oyee bene
fits payable t
o long-term
employees.
When some or
all of the economic benefits required to settle a p
rovision are expected to
be recovered from a third party,
a receivable is recognized as an as
set if it is virtually certa
in that reimbursemen
t will be received and the amount o
f
the
receivable can be measure
d reliably.
(21) Taxation
Income tax expe
nse is composed of c
urrent and
deferred tax.
1)
Curr
ent tax
The current ta
x is comput
ed base
d on the taxa
ble profit
for
the current year.
The taxable profit di
ffers fr
om the profi
t
before income tax
as reported in t
h
e cons
olidated
statements of inco
me because
it exclud
es items of
income or
expense
that are taxable or deducti
ble i
n other years and it further e
xcludes items
that are never taxabl
e or deductible. The Gro
up’s
current tax
liability is calculate
d using tax ra
tes that have been
enacted or su
bstantively enacted by
the end of
the reporting
period.
The amou
nt of c
urrent tax paya
ble or
receivable i
s the best
estimat
e of
the tax
amount expected to
be paid
or
received that reflects uncertai
nty related to income taxes, if any.
2)
Deferred tax
Deferred tax is reco
gnized on tempo
rary differences
be
tween the car
rying amounts
of ass
ets and liabilities in the
consolidated fi
nancial
statements
and the corresponding ta
x bases used in the comp
utation
of taxable profit. De
ferred tax
liabilities are generally recognized
for all taxable temporary differences. Deferred tax assets shall be
generally recognized
for all deductib
le temporary differences to the extent that it is probab
le that taxable profits will be available again
st which
those deductible temporar
y differences can be utilized.
Such
deferred tax as
sets and liabilities
shall not be rec
ognized i
f
the temporary di
fference arises
from goodwill or fro
m the
initial recognition (othe
r than in
a business combinati
on) of
other assets and
liabilities in a transactio
n that affects ne
ither the taxable profit nor
the accounting profit.
Deferred tax liabilities are reco
gnized for taxable temporary diff
erences associated with in
vestments in
subsidiaries and
associates
and interest
s in joi
nt ventures
, except when
the Group is able t
o control the
timing
of the re
versal of
the
temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred
tax asset
s arisi
ng from dedu
ctible temporary di
fferences as
sociated wi
th such invest
ments and interest
s are onl
y
recognized to the exten
t that taxable profit will be availab
l
e agains
t which the te
mporary di
fference can
be utilized and
they are expected to be re
vers
ed in the foreseeable future.
The carrying amou
nt of deferr
ed tax assets
is reviewed at th
e end of each reporting
period and reduce
d
to the e
xtent that
it is no long
er probable that sufficient taxab
le profits will be available to allow all o
r part of the asset to be recover
ed.
Deferred tax assets and
liabilities are measu
red at the tax rat
es that are expected
to be applied
in the period
in which the
liability is settled
or the asset i
s realized, based o
n tax rate
s and tax laws
that have been enacted or subs
tantively enact
ed
by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences
that would follow from the manne
r in which the Grou
p expects to recover or
settle the carrying amount of its assets and
liabilities at the end o
f the reporting p
eriod.
ٻ
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Deferred tax assets and liab
ilities are offset when there is a
legally enforceable right t
o offs
et current
tax assets against
current tax liab
ilities and when th
ey relate to income
tax levied by th
e same taxation au
thority. Also, they ar
e offset when
differen
t taxable entities that intend eith
er to settle current
tax liabilities and assets o
n a net basis, o
r to realize the as
sets
and settle the liabilities sim
ultaneo
usly, in each future p
eriod in which signif
icant amounts of deferred tax
liabilities or
assets are expected to be settled
or recovered.
3)
Recognition of
current and
deferred ta
xes
Current and defer
red taxes are recognized i
n profit
or loss, excep
t when t
hey relate t
o items
that are recognized in
other
comprehensive income or dire
ctly in e
quity, or items arising from initial accounting
treatments of a bus
iness combination.
The tax effect a
rising fr
om a busi
ness combinati
on is include
d in the accounting fo
r the business combinati
on.
(22) Treasury
s
tock
When the Group repurc
hases its
equity instruments (treasury st
ock), the increment
al costs
and net of tax effect are
deducted from
equity a
nd rec
ognized as ot
her capital item deducted
from the total equit
y in the co
nsolidated s
tatements
of financial p
osition. In a
ddition, profits
or losses
from purchase, sale or retirement
of treas
ury stocks are di
rectly
recognized in equity and not in current profit or loss.
(23) Financial liab
ilities and equity
instruments
Debt instrumen
ts and equity instruments issu
ed by the Group are recognized as financial liabilities or eq
uity depending
on the contract and th
e definitions of financial liab
ility and equity instrum
ent.
1) Equity i
nstruments
An equity instru
ment is any contract that evidences a residual inter
est in the assets of an entity after deduc
ting all of its
liabilities. Equity in
struments issued b
y th
e Group are recognized at the proceeds received, net of direct issue costs.
Repurchase of
the Company’s own
equity instruments
is re
cognized
and deducted di
rectly i
n equit
y. No
gain or l
oss is
recognized in p
rofit or l
oss on
the purchase, s
ale, is
sue or cancell
ation of the
Company’s own equity ins
truments
.
2) Financial g
uarantee liability
A financial guarantee co
ntract is a contract
that the issuer mu
st pay a certain amo
unt of money
to compensate for losses
incurred by the holder d
ue to the failure of a specific debt
or to
pay the due date
on the origi
nal contract or modifie
d terms
of the debt instrum
ent. Financial guarantee liabilities are measured in
itially at fair value and subsequently measured at
the greater of the
following, unle
ss they are
designated
as at fair
value through pro
fit or l
oss
or arising f
rom the tra
nsfer
of asse
ts.
x
Loss provision cal
culated i
n accordance with K-IF
RS 1109
x
The amount recognized l
ess th
e accumulated profits reco
gnized i
n accordance with K
-IFR
S 1115
3) Finan
cial liabilities measured
at FVPL
Financial liabilities ar
e classified as at FVPL when th
e financial liability is (i) con
tingent consideratio
n of an acquirer in
a business co
mbination, (ii) h
eld for trading or (iii)
it is designated as at FVPL as of the d
ate of initial recognition
.
However, for finan
cial liabilities that are designated as at FVPL, the amount of change in the fair value of the financial
liability that is attrib
utable to changes in
the credit risk of that liability is reco
gnized in other compr
ehensive income,
unless the recog
nition of
the effects of ch
anges in the liab
ilit
y’s cred
it risk in oth
er comprehensiv
e income would
create
or enlarge an accou
nting mismatch in prof
it or loss
. The r
emaining amount
of change
in the fair value of liability is
recognized in pro
fit or loss. Changes in fair value attribu
table to a financial liability’s credit risk that ar
e recognized in
other comprehensi
ve income are not s
ubsequently reclas
sified to profi
t or loss;
instead, they are transferre
d to retained
earnings upon
derecognition
of the
financial l
iabili
ty. Ga
ins
or losses
on financia
l gua
rantee contracts is
sued by the Gr
oup
that are designated
by the Group as at F
VPL are recognized
in profit or loss.
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ٻ
4) Financ
ial liabilities measured su
bsequently
at amortized cost
Financial liabilities th
at are not (i) co
ntingent consid
eration of an acquirer in a busin
ess combinatio
n, (ii) held for trad
ing
,
or (iii) designated as at FVPL as of the
date of initial recogni
tion, are measured
subs
equent
ly at amortized cost using the
effective interest m
ethod. The effective intere
st method is a method
of calculating the amortized cost of a fin
ancial liability
and of allocat
ing interest
expe
nse over the
relevant
period.
5) Derecognition
of financial liabilities
The Group derecognizes financial liabilities when, and on
ly when, the Group’s obligations are discharged, cancelled or
have expired. The difference
between th
e carrying amount of the financial lia
bility derecognized and the consideratio
n
paid and paya
ble is recogni
zed in pr
ofit or
loss.
(24) Derivat
ives
Derivatives are initially r
ecognized at fair value at th
e date the derivative contracts are entered into an
d are subsequently
remeasured to their fair val
ue at the end of each reporting peri
od. The res
u
lting gai
n or loss
is recognized in profit or los
s
immediately, unles
s the deriv
ative is des
ignated and effecti
ve as a hedging instrument, i
n such case, the timing of the
recognition in profit or lo
ss depends on the nature of the hedge relationship.
The Group designates
certain derivatives as
hedging inst
ruments
to
hedge the risk of chang
es in fair value of a recogni
zed
asset or l
iabilit
y or an unrec
ognized firm commi
tment (fai
r value hed
ges) and the
risk of changes in cas
h flow
of a hig
hly
probable forecast trans
action and the risk of changes in fore
ign currency exchange rates of
firm commitment (cash flow
hedges).
1)
Fair value hedges
The Group recogni
zes the cha
nges in the fair
value of de
rivatives that are desi
gnated and
qualified as
fair value he
dges
are recognized in profit or loss immediately, together with any change
s in the fair
value of the hedged asset or liability
that are attributable to th
e hedged risk. Hedge accounting is
discontinued when the Group
re
vokes the hedging relationship
,
when the hedgi
ng instrument expi
res or i
s sold, te
rminate
d or exercised, or w
h
en it is
no lo
nger quali
fied for
hedge
accounting. The f
air value a
djust
ment to the carryi
ng amoun
t of the hedged item aris
ing fro
m the hedged ris
k is amort
ized
to profit or lo
ss from that date.
2)
Cash flow hedges
The effective porti
on of changes
in the fair value of derivat
i
ves t
hat are designate
d and qual
ified as cas
h flow hedges is
recognized in
other comp
rehens
ive income. T
he gain or
los
s relating t
o the inef
fective por
tion is
recognized im
mediately
in profit or lo
ss. Amounts previou
sly recognized in other comprehensive income and accumulated in equity are
reclassified to prof
it or loss in the periods when the hedged
item affects profit or loss. If the forecast transaction results
in the recognition o
f a non-fin
ancial asse
t or liability, the related ga
in and los
s recognized i
n
other comprehe
nsive income
and accumulated in
equity are transferred from equity
to the initial cost of related non-
financial asset or liability.
Cash fl
ow hedge acc
ountin
g is
disconti
nued whe
n the Group rev
okes the hedgi
ng rel
ations
hip, whe
n the he
dging
instrument expi
res or is
sold, termi
nated or exercis
ed, or it
no longer qualifi
es for t
he criteria
of hedging. A
ny gain o
r
loss accumulated in e
quity at that time rema
ins
in equity,
and is recog
nized as profit or
loss
wh
en the forecast transaction
occurs. W
hen the forecast tra
nsaction is no
longer expected
to occur, the
gain or
loss accumulated in
equity is rec
ognized
immediately in
profit or loss.
(25) Fair
value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
betwe
en
market participants at t
h
e measurement da
te, regardless of whether that price is directly
observable or estimated using
another valuation technique.
In estimating the fair valu
e of an asset or a liability,
the Group takes into account the
characteristics of th
e asset or liab
ility if mark
et participants wo
uld take tho
se characteristics into accou
nt when pr
icing
the asset or liability
at the mea
surement da
te. Fair
value for measurement and/or disclo
sure purposes in these consolid
ated
financial statemen
ts is determined
on such
a basis, except for leasing trans
actions
that are within the scope of K-IFRS
1116
Leases
, and measurements that have some similarities to f
air value, but are not fai
r value, such as net realisable
value in K-IFRS
1002
Inve
ntori
es
or value in us
e in K-IFR
S 1036
Impairment o
f Assets
.
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ٻ
In addition,
for financi
al repor
ting purposes, fair val
ue measur
ements are cat
egorize
d into Levels
1, 2 or 3, based
on the
degree to which t
he inputs
to the fair val
ue measurements
are observable and t
he signific
ance of the inputs to the fai
r
value measurement in its
enti
rety, whic
h are descri
bed in No
te 20.
(26)
Accounti
ng Treatment
related
to the Emi
ssion R
ights C
ap and Trade Scheme
The Group classi
fies the emis
sion rights
as intangibl
e asset
s. Emission ri
ghts allowa
nce the government all
ocated free of
charge are measur
ed at nil, and emission righ
ts allowance
purchased are measu
red at cost. No emission liab
ility is
recognized if the ex
pected qu
antity of emiss
ion for the
perf
ormin
g period does
not e
xceed the e
mission allowance in
possession. Th
e emission liab
ility is mea
sured based o
n the expected qu
antity of emission
for the pe
rforming period
in
excess of emis
sion all
owance in posses
sion and the unit price for s
uch emission ri
ghts in the market
at the end of the
reporting perio
d
.
(27)
Signi
ficant accountin
g estimat
es and key so
urces of esti
mati
on uncertai
nties
In the applicat
ion of the Gr
oup’s accounting polic
ies, m
anagement is req
uired to ma
ke judgments, esti
mates and
assumptions abo
ut the carr
ying amounts
of
ass
ets and liabilities
that cannot be
identified fr
om other sources.
The
estimati
on and ass
umptions a
re based on his
torical e
xperience and othe
r factors that
are co
nsidered t
o be
relevant
. Actual
results may be di
fferent
from
those est
imations. The es
timates
and underlying
assumpti
ons are conti
nually e
valuated.
Revisions
to accounting estimates are recogni
zed in the peri
od in which
the estimate is revised if the revision affects only
that period
or in the peri
od of the revision an
d future periods
if the revis
ion affects
both current and fut
ure perio
ds.
The management expects th
at the COVID-19 outbreak
from early 2021 will have an impact on mo
st of the regional and
operating sectors
in whi
ch the Group
operates. However, as the ext
ent and d
uration of t
he impacts
of COVID-19
outbreak remain
uncertain
, the financi
al impact ca
nnot be re
asonably estimated.
Information about
assumptions and estimati
on uncertainties
at December 31, 2021 that
have
a significant ris
k of resulting
in a material adju
stment to the carrying amounts of
assets and liabilities in th
e next financial year is as f
ollows.
1) Impairme
nt test
for goodw
ill and non
-financial ass
ets
Determining wh
ether goodwill and non
-financial asset is im
paired requ
ires an estimation o
f the value in u
se of the CGU
to which goodwill has bee
n allocated and
value in use of
non-
financial ass
ets. The value i
n
use calculation requires
the
management to
estimat
e the f
uture cash fl
ows e
xpected to
aris
e from the
CGU and
a s
uitable dis
count rat
e in
order t
o
calculate present value.
2) Warranty
p
rovision
The Group reco
gnizes provis
ions for
the warrant
ies
of its
products as des
cribed in N
ote 2.(2
0). T
he amou
nts are
recognized based o
n the best es
timate of amounts necessary
t
o settle the present and futu
re warranty obligation.
3) Defined be
nefit plans
The Group ope
rates defi
ned re
tirement benefit
plans
. Defi
ne
d benefit obligations are determined at the end of each
reporting perio
d using an actuarial
valuation meth
od that
re
quires management ass
umptio
ns on disc
ount rates,
rates of
expected future salary
increases and mortality rates. The ch
aracteristic of post-emplo
yment benefit plan that serv
es for
the long ter
m period caus
es signi
ficant uncert
ainties
when the pos
t-employment
benefit
obligati
on is est
imated.
4)
Taxation
The Group recogni
zes current
tax and deferre
d tax based on the bes
t estimat
es of income t
ax effect to
be charged in the
future as the r
esult of operating activities until th
e end of the reporting p
eriod. However, actual final in
come tax to be
charged in the future may diff
er from the relevant as
sets
and liabilities recognized at the
end of the reporting
period and
the difference may affect income tax charged or credited, or deferred tax assets and liabilities in the period in which the
final income tax determ
ined.
5)
Fair value o
f financial instrume
nts
The Group uses
valuati
on techniques
that inclu
de inputs
that ar
e not based on observable market data to estimate the fair
value of certai
n type of fina
ncial instrument
s. The Gro
up
makes judgement
s on the ch
oice of various valuation met
hods
and assumptions
based on the conditi
on of the
principal
market at t
he end of the
reporting
period.
ٻ
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ڎڒٻ
ٻ
6)
Measurement and useful
lives
of property
, plant, equipment
or intangi
ble assets
If the Group acqui
res property
, plant, equipment or intan
gible
assets from bus
iness combi
nation, i
t is required t
o estimate
the fair value o
f the assets at th
e acquisition date an
d determine the usefu
l lives of such assets
for depr
eciation and
amortization.
7)
Cr
edit loss allowance
The Group sets credit loss
allowance upon
evaluation of impairment relating to acco
u
nt receivables and financial services
receivables as described i
n Note 2.(8). The precision in los
s
allowance is based on the es
timation of expecte
d cash flow
and assump
tions and variables of
risk measuremen
t model used for the estim
ation.
3.
TRADE NOTES AND ACCOUNTS R
ECEIVABLE:
(1)
Trade notes and accounts rece
ivab
le as of December 31, 202
1 and December 31, 2
020 are as
follows.
December 31, 2021
December 31, 2020
Description
Current
Non-current
Current
Non-current
(In millions of Korean Won)
Trade notes and accounts
receivable
୸
3,190,030
୸
G
145,648
୸
3,338,865
୸
128,599
Loss
allowance
(42,734)
(773)
(54,893)
(317)
Present value di
scount acc
ounts
-
(7,718)
-
(4,013)
୸
3,147,296
୸
G
137,157
୸
3,283,972
୸
124,269
(2)
Aging analysis
of trade not
es and acco
unts receivabl
e
As of December 31, 2021, agi
ng analysis
of total trade notes and acco
unts
receivable that are past due, but not impaired
are as follows.
Description
Not
due
Overdue
Within
90days
Overdue
Within
180days
More than
91days
Overdue
More than
181 days
Total
amounts
Amount of
impaired
receivables
(In millions of Korean Won)
Total trade note and
accounts receivable
୸
2,998,927
୸
249,201
୸
5,437
୸
82,113
୸
3,335,678
୸
43,507
As of December 31, 2020, agi
ng analysis
of total trade notes and accou
nts receivab
le that are past due, but not impaired
are as follows.
Description
Not
due
Overdue
Within
90days
Overdue
Within
180days
More than
91days
Overdue
More than
181 days
Total
amounts
Amount of
impaired
receivables
(In millions of Korean Won)
Total trade note and
accounts receivable
୸
2,937,200
୸
438,770
୸
3,677
୸
87,817
୸
3,467,464
୸
55,210
(3)
Transferred trade notes
and accounts
receivable t
hat are not derecognized
As of December 31, 2021
and December 31, 2020, total tr
ade
notes and accou
nts receivable (includin
g inter-company
receivables within th
e Group) which the
Group transferred to financial instituti
ons but did not qualify
for derecognition,
amount to
୸
3,
059,551 mi
ll
ion and
୸
2,914,830 million, respectively. Cash and cash equ
ivalents received as
consideration fo
r the transfer
are recognized as
short-term b
o
rrowings d
ue to the fact that the ris
k
s and rewards w
ere not
transferr
ed substantially
.
ٻ
ٻ
ٻ
ٻ
ڎړٻ
ٻ
(4)
Changes in los
s allowance for
the years ended December 31,
2021 and December 31,
2020 are as
follows
Description
2021
2020
(In millions of Korean Won)
Beginning o
f the year
୸
55,210
୸
67,564
Impairment l
oss (revers
al)
2,204
(16,595)
Write-off
(14,307)
(1,296)
Effect of foreign exchange differences
and others
400
5,537
End of the yea
r
୸
43,507
୸
55,210
4. OTHER
RECEIVABLES
:
(1)
Other receivables as of December 31
, 2021 a
nd December 3
1, 2020 are as
follows.
December 31, 2021
December 31, 2
020
Description
Current
Non-current
Current
Non-current
(In millions of Korean Won
)
Accounts receivable
– others
(*
)
୸
2,785,799
୸
373,569
୸
2,757,116
୸
350,549
Due from
customers
for contract work
1,421,108
-
1,252,117
-
Lease and rental de
posits
24,105
310,536
16,296
302,052
Deposits
7,289
33,469
5,268
39,752
Others
3,546
23,594
4,050
10,282
Loss allowance
ٻ
(20,877)
-
(17,875)
(294)
୸
4,220,970
୸
741,168
୸
4,016,972
୸
702,341
(*) As of December 3
1, 2021
and December 31
, 2020,
the Group rec
ognized t
he reim
bursem
ent re
late
d to the w
arra
nty pr
ovisions
as
a separate asset i
n the amo
unt of
୸
1,091,859 m
illio
n and
୸
1,
073,
098 milli
on, respectivel
y.
(2)
Changes in other allowance fo
r the year ende
d D
ecember 31,
2021 and Dece
mber 31, 202
0 are as follows.
Description
2021
2020
(In millions of Korean Won)
Beginning o
f the year
୸
18,169
୸
15,403
Impairment l
oss (revers
al)
517
4,174
Write-off
(871)
(1,40
9)
Effect of foreig
n exchange
differences
3,062
1
End of the yea
r
୸
20,877
୸
18,169
5.
OTHER FINANCIAL ASSETS:
(1)
Other financial assets as
of December 31, 2021 a
re as follows
.
December 31
, 2021
Description
Current
Non-current
(
In million
s of Korean Won)
Financial assets measu
red at FVPL
୸
12,249,980
୸
222,120
Financial as
sets
measured at FVOC
I
25,15
0
2,886,373
Financial assets meas
ured at amortized cost
18,466
8,729
Derivative ass
ets that are effective hedging ins
truments
103,050
422,064
୸
12,396,646
୸
3,539,286
ٻ
ٻ
ٻ
ٻ
ڎڔٻ
ٻ
Other financial assets as
of December 31, 2020 a
re as follows
.
December
31,
2020
Description
C
urrent
Non-current
(In millions of Korean Won)
Financial assets measu
red at FVPL
୸
12,705,388
୸
388,069
Financial as
sets
measured at FVOC
I
36,831
2,286,113
Financial assets meas
ured at amortized cost
29,565
8,400
Derivative ass
ets that are effective hedging ins
trument
s
125,324
96,645
୸
12,897,108
୸
2,779,227
(2)
Financial assets measured at FVOCI as of Decem
ber 31, 20
21 and December 31, 2020 are
as follows.
December 31,
2021
December 31,
2020
Description
Acquisition
cost
Book value
Book value
(In millions of Korean Won)
Debt ins
truments
୸
440,927
୸
450,711
୸
327,730
Equity inst
rument
s (*)
2,336,347
2,460,812
1,995,214
୸
2,777,274
୸
2,911,523
୸
2,322,944
(*)
The G
roup makes an i
rrevocable
election to pre
sent in other
com
pre
hensive
incom
e subse
quent chan
ges in the fa
ir val
ue of
a
n
investme
nt in a
n equit
y instr
umen
t that is
not he
l
d
for tradi
n
g at the
date
of initial re
cogni
tion.
(3)
Equity instruments clas
sified into
financial assets meas
ured at FVOC
I as of December 31, 2021 a
nd December
31, 2020 are as
follows.
December 31,
2021
December 31,
2020
Name of the company
Ownership
percentage
Acquisition
cost
Book
value
Book
value
(%
)
(In millio
ns of Korean Won)
Hyundai Steel
Company (*
1)
6.87
୸
835,375
୸
434,277
୸
451,650
Grab Holdings Li
mited
1.14
442,9
22
362,508
-
Hyundai Glovi
s Co., Lt
d.
4.88
210,688
314,922
336,893
ANI Technologi
es Privat
e Limited (OLA
)
3.42
278,955
290,116
278,955
Hyundai Oilban
k Co., Ltd.
4.35
53,734
230,812
222,524
Korea Aerospace Indust
ries, Lt
d. (*2)
-
73,331
153,522
122,061
Hyundai Heavy In
dustries
Holdings C
o., Ltd.
2.20
9,018
94,892
98,36
1
NICE Informati
on Servi
ce Co.
, Ltd.
2.25
3,312
24,587
33,87
5
Hyundai Gree
n Food C
o., Ltd.
2.36
15,005
20,077
20,21
5
Hyundai M Partne
rs Co., Ltd.
9.29
9,888
13,954
16,70
8
NICE Holdi
ngs Co., Lt
d.
1.30
3,491
7,866
9,562
KT Corporati
on
0.09
8,655
7,443
5,762
Hyundai Asan C
o
rporati
on
1.40
22,50
0
2,117
2,117
Korea Shipbuil
ding & Of
fshor
Engineering C
o., Ltd (*
3)
-
-
-
177,165
Others
369,473
503,719
219,366
୸
2,336,347
୸
2,460,812
୸
1,995,214
(*1)
The G
roup en
tered in
to a t
otal ret
urn swap a
greement to tra
nsfer 1,367,1
14 shares out
of total 10,5
40,70
9 shares
with a th
ir
d
party.
(*2) Th
e Group entered in
to a total return
swap ag
reement to
transf
er total share
s with a thir
d party.
(*3) For th
e year ended December 31
, 2021, the Gr
oup has
disposed of
all
of it
s shar
es.
ٻ
ٻ
ٻ
ٻ
ڏڋٻ
ٻ
6.
INVENTORIES:
Inventories as of December
31, 2021 an
d December 31,
2020 are as follows.
Description
December 31, 2021
December 31, 2020
(In millions of Korean Won)
Finis
hed goods
୸
G
G
G
G
G
G
G
G
G
G
G
5,987,233
୸
6,844,023
Merchandise
G
G
G
G
G
G
G
G
G
G
G
G
G
G
59,518
44,356
Semifini
shed goods
G
G
G
G
G
G
G
G
G
G
G
G
G
711,
155
576,950
Work in progres
s
G
G
G
G
G
G
G
G
G
G
G
G
G
692,
832
404,504
Raw mate
rials
G
G
G
G
G
G
G
G
G
G
G
2,536,6
71
1,633,579
Supplie
s
G
G
G
G
G
G
G
G
G
G
G
G
G
315,
871
299,259
Materials in transit
G
G
G
G
G
G
G
G
G
G
G
G
G
730,
970
625,833
Others (*
1)
G
G
G
G
G
G
G
G
G
G
G
G
G
611,
391
905,230
Total (*2)
୸
G
G
G
G
G
G
G
G
G
G
11,645,641
୸
11,333,734
(*1)
As of Decemb
er 31, 2
021 an
d December 31,
2020,
others inclu
de inventori
es provi
ded by op
erating lease wit
h repur
chase
agreement i
n the amou
nt of
୸
143,641 mi
llio
n and
୸
8
9
,059 m
illion,
respective
ly.
(*2)
As of Dece
mber 31
, 2021
and December 31
, 20
20, the Gr
oup recogniz
ed a valuation a
llowance
in the amount of
୸
167,888
million and
୸
164,
980 million, re
spective
ly.
7. OTHER
ASSETS:
Other assets as
of December 31, 2021 an
d December 31
, 2020 are as f
ollows.
December 31, 2021
December 31, 2020
Description
Current
Non-current
Current
Non-current
(In millions of Korean Won
)
Accrued income
୸
353,643
୸
716
୸
327,079
୸
866
Advanced payme
nts
662,919
-
726,609
-
Prepaid
expenses
558,336
1,108,621
459,580
792,529
Prepaid value-a
dded tax and others
506,955
81,947
520,103
86,11
4
୸
2,081,853
୸
1,191,284
୸
2,033,371
୸
879,509
8.
NON-CURREN
T ASSETS CLASSIFIED AS HELD FOR SAL
E:
Non-current as
sets cl
assified as
held for sale as
of December
31, 2021 and December 31,
2020 are
as follows
.
Description
December 31, 2021
December 31, 2020
(In millions of Korean Won)
Land
୸
-
୸
7,426
Building and
others
28,121
-
Subsidi
ary (*)
-
297,043
Total
୸
28,121
୸
304,469
Non-current liabilities classifi
ed
as
held for sale (*
)
୸
-
୸
214,066
(*)
Hyunda
i Autoe
ver Cor
p
., an a
ssoci
ate of the
Compan
y, entered int
o a contra
ct to merge w
ith Hyun
dai Autron Compa
ny Lt
d., the
subsidiary of t
he Compan
y,
and HYUNDAI
MNSOFT, Inc., the
associate of the Co
mpany, i
n Dece
mber 2020 a
nd the merger
was complete
d as of April 1,
2021. Accordingly, the
Grou
p clas
sified the assets and lia
bilities related to Hyunda
i Autron C
ompa
ny
Ltd.
to disposal group
held for sale as o
f December 31
, 2020 and it was disp
osed of du
ring the year end
ed December 31
, 2021.
ٻ
ٻ
ٻ
ٻ
ٻ
ڏڌٻ
ٻ
9.
PROPERTY, PLANT AND EQUIPMENT:
(1)
Propert
y, plant an
d equipment (“PP&E”) as
of Decembe
r 31, 2021 and
2020 are
as follow
s.
December 31
, 2021
December 31, 20
20
Descri
p
tion
Acquisition
cost
Accumulat
ed
de
p
reciatio
n
(
*
)
Book
value
Acquisition
cost
Accumulat
ed
de
p
reciatio
n
(
*
)
Book
value
(
In millions of Korean Won
)
Land
୸
12,13
0,094
୸
-
୸
12,13
0,094
୸
12,04
7,003
୸
-
୸
12,04
7,003
Buildin
g
s
10,872,099
(
4,10
8,39
2
)
6,763,
707
10,067,7
87
(
3,71
1,93
5
)
6,355,85
2
Structure
s
1,634,
658
(
820,896
)
813
,762
1,497,95
1
(
735,703
)
762,248
Machine
ry a
nd equi
pment
17,
542,258
(10,884,
908)
6,657,
350
16,51
7,625
(9,848
,680)
6,668,945
Vehicl
es
473,053
(
219,202
)
253
,851
396,899
(
191,797
)
205,102
Dies, m
o
lds an
d tools
14,310,816
(
9,89
9,71
4
)
4,411,
102
12,532,4
68
(
8,69
5,19
0
)
3,837,27
8
Office e
q
ui
p
ment
1,926,
607
(
1,50
2,05
8
)
424
,549
1,772,09
9
(
1,38
6,33
6
)
385,763
Other
s
309,4
79
(
102,861
)
206
,618
162,951
(
87,32
8
)
75,62
3
Construc
tion
in pr
ogres
s
3,882,05
0
-
3,882,050
3,754,415
-
3,754,41
5
୸
63,08
1,114
୸
(27,53
8,031)
୸
35,54
3,083
୸
58,74
9,198
୸
(24,65
6,969)
୸
34,09
2,229
(*)
Accumu
lated imp
airment
losses are includ
ed.
(2)
The changes in PP&E for t
he year ended Decembe
r 31, 202
1 are as follows
.
Descri
p
tion
Beginn
ing
of the
y
ear
Ac
q
uisiti
ons
Tran
sfer
s
within P
P&E
Dis
p
osals
De
p
reciat
ion
Others
(
*
)
End of
the
y
ear
Land
୸
12,0
47,0
03
୸
68,9
90
୸
39,2
83
୸
(1,303)
୸
-
୸
(23,
879)
୸
12,1
30,0
94
Buildi
n
g
s
6,355,85
2
39,1
30
626,
269
(
3,46
0
)
(
328,58
0
)
7
4,496
6,763
,707
Struct
ures
76
2,248
27,774
103,295
(14,823)
(68,50
0)
3,76
8
813,762
Mach
inery
and
equi
pment
6,668
,945
28,8
39
922,
091
(31,
931)
(1,010,
082)
79,4
88
6,657
,350
Vehicl
es
205,102
84,104
82,7
30
(
51,161
)
(
61,111
)
(
5,81
3
)
253,
851
Dies
, molds
and t
ools
3,837
,278
27,7
08
1,792
,988
(18,
308)
(1,292,
982)
64,4
18
4,411
,102
Office e
q
ui
p
ment
385,763
61,338
130,04
9
(
1,91
9
)
(
157,61
1
)
6,929
424,549
Others
75,623
8,451
147,23
5
(23,572)
(13,65
0)
12,5
31
206,618
Constr
uction-in
-progr
ess
3,754
,415
4,036
,440
(3,843,
940)
(451)
-
(64,
414)
3,882
,050
୸
34,0
92,2
29
୸
4,382
,774
୸
-
୸
(146,
928)
୸
(2,932,
516)
୸
147,
524
୸
35,5
43,0
83
(*)
Others i
nclude th
e effect of forei
gn exchang
e differences, t
ransfers from or
to other accoun
ts, impairment l
oss of
୸
44,499 m
illion
allocate
d from the
impairment of
CGU a
ttributable to H
yundai Tr
uc
k & Bus(China
) Co.
, Ltd. a
nd
other
s. T
he rec
o
vera
ble a
moun
t o
f
CGU attributa
ble to Hyun
dai Truck &
Bus(China) Co.,
Ltd. was ba
sed on
its value in
use
or fair
value less cos
ts t
o dispos
al(
net
fair
value),
and the di
scount rate app
lied to the measu
rement o
f value in use is 8
.7%.
The changes in PP&E for t
h
e year ende
d December 31
, 2020 are as
follows
.
Descri
p
tion
Beginn
ing
of the
y
ear
Ac
q
uisiti
ons
Tran
sfer
s
within P
P&E
Dis
p
osals
De
p
reciat
ion
Transf
er to
asset
s
classifi
ed as
h
eld fo
r sale
Others
(
*
)
End of
the
y
ear
(
In mil
lions o
f Korean W
on
)
Land
୸
12,0
39,4
72
୸
28,94
3
୸
98,96
1
୸
(39,
754)
୸
-
୸
(65,
287)
୸
(15,
332)
୸
12,0
47,0
03
Build
ings
6
,229,
826
9,425
453,705
(
23,812
)
(308
,194)
(
12,504
)
7,406
6,355
,852
Struct
ure
s
749,
571
12,974
77,
409
(
3,99
0
)
(
66,178
)
(
519
)
(
7,01
9
)
762,24
8
Mach
inery
and
equi
pment
6,534
,417
10,81
2
1,347
,753
(70,
689)
(1,002,
135)
(408)
(150,
805)
6,668
,945
Vehicl
es
198,330
37,379
89,552
(
49,189
)
(
58,213
)
(
62
)
(
12,695
)
205,10
2
Dies
, molds
and t
ools
3,034
,610
7,060
1,998
,356
(
11,715
)
(
1,12
2,39
6
)
(
5,15
6
)
(
63,481
)
3,837
,278
Office equi
pment
415,
173
37,533
112,
808
(1,292)
(161,
624
)
(8,398)
(8,437)
385,
763
Others
43,317
31,310
32,
849
(
2,07
4
)
(
20,445
)
(
53
)
(
9,28
1
)
75,623
Constr
uction-in
-
p
ro
g
res
s
3,586
,808
4,495
,312
(
4,21
1,39
3
)
(
742
)
-
-
(
115,57
0
)
3,754
,415
୸
32,8
31,5
24
୸
4,670
,748
୸
-
୸
(203,
257)
୸
(2,739,
185)
୸
(92,
387)
୸
(375,
214)
୸
34,0
92,2
29
(*)
Others i
nclude th
e effect of foreign exch
ange differences,
transfers fro
m or to other acco
unts and impai
rment lo
sses and ot
hers.
ٻ
ٻ
ٻ
ٻ
ڏڍٻ
ٻ
10. INVESTMENT
PROP
ERTY:
(1)
Investment propert
y as of December 31, 2
021 and December 31,
2020 are as follows
.
December 31, 2021
December 31, 20
20
Description
Acquisition
cost
Accumulated
depreciation
Book
value
Acquisition
cost
Accumulated
depreciation
Book
value
(In million
s of Korean Won)
Land
୸
54,284
୸
-
୸
54,284
୸
56,046
୸
-
୸
56,046
Buildi
ngs
313,
777
(221,919)
91,85
8
298,673
(204,673
)
94,000
Structures
18,630
(8,116)
10,514
18,630
(7,709)
10,921
୸
386,691
୸
(230,035
)
୸
156,656
୸
373,349
୸
(212,382
)
୸
160,967
(2)
The changes in invest
ment pro
perty for the year en
ded December 31, 2021 are as
follows:
Description
Beginni
ng
of the year
Disposals
Transfers(*)
Depreciation
Effect of foreign
exchange
differences
End of
the year
(In millions of Korean Won)
Land
୸
56,046
୸
(1,762)
୸
-
୸
-
୸
-
୸
54,284
Buildi
ngs
94,000
-
1,537
(4,990)
1,311
91,858
Structures
10,921
-
-
(408)
1
10,514
୸
160,967
୸
(1,762)
୸
1,537
୸
(5,398)
୸
1,312
୸
156,656
(*) Transferred amount fro
m
Constru
ctio
n-in-
progre
ss
.
The changes in In
vestment pr
operties for the year ended
December 31, 2020 are as foll
ows.
Description
Beginni
ng
of the year
Transfers(*)
Depreciation
Effect of foreign
exchange
differences
End of
the year
(In millions of Korean Won)
Land
୸
56,046
୸
-
୸
-
୸
-
୸
56,046
Buildi
ngs
104,118
10
(9,920)
(208)
94,000
Structures
11,330
-
(408)
(1)
10,921
୸
171,494
୸
10
୸
(10,328)
୸
(209)
୸
160,967
(*) Transferred amount fro
m
Constru
ctio
n-in-
progre
ss
.
(3)
The fair value of Invest
ment properties
as of Decembe
r 31, 2021 an
d December 31, 20
20 are as follows.
Description
December 31, 2021
December 31, 2020
(In
millions of Korean Won)
Land
୸
54,28
4
୸
56,046
Buildings
338,579
315,854
Structures
15,496
15,496
୸
408,35
9
୸
387,396
The fair value measureme
n
t of the Investment
properties was
performed by an
independent third part
y. The Group deem
s
the change in fair value from the fair value measurement pe
rformed at the initial recognition of
the Investment properties
is not material.
The fair value of the Inves
tment prope
rties is classified as Le
vel 3, based on t
he inputs
used in the valuat
ion techni
ques.
The fair value has been d
etermined base
d o
n the cost appr
oach and the market
approach
. The cost approach measure
s
fair value as current
replacement cost considering building st
ructures and design, su
pplement
ary installation, dep
r
eciation
period.
ٻ
ٻ
ٻ
ٻ
ڏڎٻ
ٻ
(4) Income and expenses relat
ed to Inves
tment pro
p
erties for t
he years ende
d December 31, 2021 an
d 2020 are as
follows.
Description
2021
2020
(I
n millions of Korean Won)
Rental income
୸
47,71
0
୸
49,536
Operating and maint
enance ex
penses
13,26
5
17,141
11. I
NTANGI
BLE AS
SETS:
(1)
Intangible assets as of Decem
ber 31, 2021 a
nd December 31, 2020 are as
follows.
December 31, 2021
December 31, 2020
Description
Acquisition
cost
Accumulated
amortization (
*)
Book
value
Acquisition
cost
Accumulated
amortization (
*)
Book
value
(In millions of Korean Won)
Goodwill
୸
409,570
୸
(35,807)
୸
373,763
୸
377,015
୸
(35,539)
୸
341,476
Development
costs
10,374,450
(6,331,957)
4,042,493
9,957,047
(5,679,376)
4,277,671
Industria
l
property rig
hts
477,280
(338,071
)
139,209
447,109
(201,709
)
245,400
Software
1,567,846
(1,089,9
90)
477,856
1,397,880
(978,779)
419,101
Others
821,000
(189,077
)
631,923
486,459
(235,196
)
251,263
Const
ruction in
progress
197,278
(15,536)
181,742
146,890
(4,234)
142,656
୸
13,847,424
୸
(8,000,438)
୸
5,846,986
୸
12,812,400
୸
(7,134,833)
୸
5,677,567
(*)
Accu
mulated
impairmen
t losses are in
cluded.
(2)
The changes in intangible
as
sets for the yea
r ended December 31, 202
1 are as follows.
Description
Beginni
ng
of the year
Internal
developments
External
acquisition
Transfers
within
intangib
le
assets
Disposals
(In millions of Korean Won)
Goodwill
୸
341,476
୸
-
୸
-
୸
-
୸
-
Development
Cost
s
4,277,671
1,291,676
31,287
41,147
(417)
Industria
l
property
rights
245,4
00
64
951
28,07
6
(152)
Software
419,101
8,531
41,31
6
32,113
(110)
Others
251,263
-
1,150
21,77
1
(18,662)
Construct
ion in p
rogress
142,656
11,124
171,226
(123,107)
-
୸
5,677,567
୸
1,311,395
୸
245,930
୸
-
୸
(19,341)
Description
Amortizatio
n
Impairment l
oss
/reversal (*1)
Transfer to Non-
current assets
classified as held
for sale
Others
(*2)
End of
the year
(In millions of Korean Won)
Goodwill
୸
-
୸
(76,805)
୸
-
୸
109,092
୸
373,763
Development
Cost
s
(1,406,713)
(192,213
)
(3,496)
3,551
4,042,493
Industria
l propert
y rights
(24,076)
(112,
278)
-
1,224
139,209
Software
(158,353)
(4)
-
135,262
477,856
Others
(28,681)
6
(162)
405,238
631,9
2
3
Construct
ion in p
rogress
-
(12,853)
-
(7,304)
181,742
୸
(1,617,823)
୸
(394,147
)
୸
(3,658)
୸
647,063
୸
5,846,986
(*1) Impa
irment los
ses
include i
mpairment of devel
opment costs due
to the disc
ontinue
d sales
and deve
lopme
nt projects
, impairme
nt
loss of
୸
246,70
7
millio
n allocated from
the impairment of
CGU attribut
a
ble to Hyunda
i Truc
k & B
us(C
hina) C
o., Ltd
. and
others.
ٻ
ٻ
ٻ
ٻ
ڏڏٻ
ٻ
(*2) Others
incl
ude the
effect of
foreig
n exc
h
ange
difference
s, tr
ansfe
rs f
rom or to
other acc
ounts, c
h
a
nges
in the
sco
pe of
co
nsolida
tion
and ot
hers
.
The changes in intangi
ble assets for the ye
ar ende
d December 31,
2020 are as f
ollows.
Description
Beginni
ng
of the year
Internal
developments
External
acquisition
Transfers
within
intangib
le
assets
Disposals
(In millions of Korean Won)
Goodwill
୸
261,525
୸
-
୸
-
୸
-
୸
-
Development
Cost
s
4,076,343
1,532,411
25,070
35,848
(4,306)
Industria
l
property
rights
133,2
75
153
1,579
25,032
(610)
Software
317,989
7,827
38,40
9
129,436
(1,072)
Others
249,948
-
10,166
4,189
(2,217)
Constr
uction
in
progress
227,416
48,189
64,514
(194,505)
-
୸
5,266,496
୸
1,588,580
୸
139,738
୸
-
୸
(8,205)
Description
Amortizatio
n
Impairment l
oss
(*1)
Transfer to Non-
current assets
classified as held
for sale
Others
(*2)
End of
the year
(In millions of Korean Won)
Goodwill
୸
-
୸
-
୸
-
୸
79,951
୸
341,476
Development
Cost
s
(1,244,996)
(187,580)
(58,341)
103,222
4,277,67
1
Industrial
property
rights
(25,261)
-
(2,680)
113,912
245,400
Software
(154,890
)
(42)
(9,975)
91,419
419,101
Others
(10,713)
(339)
(752)
981
251,263
Construct
ion in p
rogress
-
(1,567)
(50)
(1,341)
142,656
୸
(1,435,860)
୸
(189,528
)
୸
(71,798)
୸
388,144
୸
5,677,567
(*1) Im
pairment losse
s wer
e rec
ognized f
or developm
ent cost
s due
to the disco
ntinued
sales and
deve
lopment
projec
ts
for the year end
ed December 31, 20
20.
(*2) Others i
nclude the effect o
f foreign ex
change
differences an
d tran
sfer from or to other account
s and others.
(3) Development cost
s of intangible assets
as
of December 31, 2021 c
onsist of as follows.
Descript
ion
Book
value
Remaining
amortizati
on
period
(*)
(In million
s of
Korean Won)
Automobile
Developing
୸
1,176,530
-
Ȏ
Amo
rtizing
2,378,965
32
months
Powertrain
Developing
142,567
-
Ȏ
Am
ortizing
171,828 25
months
Others
Developing
54
-
Ȏ
Am
ortizing
172,549 46
months
୸
4,042,493
(*)
S
ince th
e remaining amo
rtization perio
d differs for each p
roject, the weight
ed average remai
ning useful l
ives of the develo
pment
costs a
t the en
d of reportin
g period ar
e disclos
ed.
ٻ
ٻ
ٻ
ٻ
ڏڐٻ
ٻ
Development costs of i
ntangibl
e asset
s as of December 31, 2
020 consi
st of as foll
ows.
Descript
ion
Book value
Residual useful l
ives (*
)
(I
n millions of
Korean Won)
Automobile
Developing
୸
1,609,463
-
Ȏ
Amortizin
g
2,145,937
35
months
Powertrain
Developing
109,467
-
Ȏ
Amortizin
g
236,310 29
mo
nths
Others
Developing
190
-
Ȏ
Amortizin
g
176,304 42
mo
nths
ٻ
୸
4,277,671
(*)
S
ince th
e remaining amo
rtization perio
d differs for each p
roject, the weight
ed average remai
ning useful l
ives of the develo
pment
costs a
t the en
d of reportin
g period ar
e disclos
ed.
(4)
Res
earch and development e
xpenditures f
or the y
ears ende
d December 31, 2
021 and
2020 are as
follows.
Description
2021
2020
(In millions of Korean Won)
Development c
o
sts
(intangible
assets)
୸
1,322,963
୸
1,557,481
Research and devel
opment c
ost
s (*1)
1,774,934
1,539,580
Total (*2)
୸
3,097,897
୸
3,097,061
(*1)
Presented in m
anufa
cturi
ng cos
ts, a
d
ministr
ati
ve expe
nses.
(*2)
Amortization of
deve
lopme
n
t cos
ts is not
included.
(5)
Impairment tes
t of go
odwill
The allocation of goodwill am
ongst the Group’s C
GUs as of D
ecember 31, 2
021 and Dece
mber 31, 2020 a
re as follows.
Segment
December 31, 2021
December 31, 2020
(In m
illions of Korean Won)
Vehicle
୸
253,204
୸
240,514
Finance
482
482
Others
120,077
100,480
୸
373,763
୸
341,476
The recoverable amounts
of the Group’s
CGUs are measured
as
their value-i
n-use calcul
ated based on
cash flow
projections of
financial budget
s for the next five
years appro
ved by mana
gement. The
pre-tax di
scount rate
applied
to the cash flow
projections for the years
ended December
31, 2021 and 2020, are
8.7% and 11.9% respecti
vely
.
Cash flow
projections beyo
nd the five-year period are ext
ra
polated by
using the est
imated growth
rate which d
o
es
not exceed the
long-term average gr
owth rate of the
region a
nd industry to w
hich the C
GU bel
ongs. A
n impairmen
t
loss on goodwill of
୸
76,805 million has been re
cognized with respect to th
e impairment of CGU attr
ibutable to
Hyundai Truck & B
us(China
) Co., Ltd. fo
r the year e
nde
d December
31, 2021. No i
mpairment loss ha
d been
recognized for
the year ende
d December 31, 2020.
ٻ
ٻ
ٻ
ٻ
ڏڑٻ
ٻ
12. LEASES (A
S A LESS
EE):
(1)
The changes
in right-of-use as
sets for t
he year ended Decem
ber 31, 2021 are
as follows.
Description
Beginni
ng
of the year
Acquisition
s
Disposals
Depreciation
Others
(*)
End of t
he year
Land
୸
143,679
୸
13,863
୸
(457)
୸
(6,686)
୸
(66,795)
୸
83,604
Building
s
681,335
249,691
(22,786)
(184,173)
30,082
754,149
Structures
2,672
1,566
(78)
(1,845)
55
2,370
Others
8,638
97,885
(854)
(8,722)
3,756
100,703
୸
836,324
୸
363,005
୸
(24,175)
୸
(201,426
)
୸
(32,902)
୸
940,826
(*)
Others in
clude the effect
of foreign exch
ange differen
ces, impairmen
t loss of
୸
46,910 millio
n alloca
ted from the impairme
nt of
CGU
attributable
to Hyu
ndai Tr
uck &
Bus(Chi
na) Co.
, Ltd. a
nd others.
The changes in right-of-
use assets for the
year ended December 31
, 2020 are as follows.
Description
Beginni
ng
of the year
Acquisition
s
Disposals
Depreciation
Others
(*)
End of t
he year
Land
୸
20,487
୸
4,323
୸
(1)
୸
(7,766)
୸
126,636
୸
143,679
Building
s
689,563
221,356
(45,158)
(173,087)
(11,339)
681,335
Structures
3,087
2,086
(218)
(2,080)
(203)
2,672
Others
21,405
9,595
-
(12,944)
(9,418)
8,638
୸
734,542
୸
237,360
୸
(45,377)
୸
(195,877
)
୸
105,676
୸
836,324
(*)
Others in
clude the effect
of foreign exchang
e differences and
others.
(2)
Lease liabilities a
s of December 31, 2021 and December 31, 2020 are as follows.
Description
December 31, 20
21
December 31, 2020
(In millions of Korean Won
)
Undiscoun
ted lease liabilities
୸
1,150,757
୸
943,470
Discounted lease liab
ilities
950,572
757,044
Current
167,266
141,478
Non-current
783,306
615,566
(3)
Expenses recognized in relation to leas
es for th
e years
ended
December 31, 2021 a
nd 202
0 are as follows
.
Description
December 31, 2021
December 31, 2020
(In millions of Korean Won)
Interest on
lease liabilities
୸
25,126
୸
30,580
Expenses in relat
ion t
o leases of s
hort-term and
low-
value assets
20,907
21,342
ٻ
ٻ
ٻ
ٻ
ٻ
ڏڒٻ
ٻ
13.
INVESTM
ENTS IN JOINT
VENTURES AND ASSOCI
ATES:
(1)
Investments in joint ventures
and ass
oci
ates as of December
31, 2021 a
re as follows.
Name of the company
Nature of
business
Location
Ownership
percentage
Book value
(%)
(In millio
ns of
Korean Won)
Beiji
ng Hyundai Qiche F
inanci
ng
Company (BHAF
) (*1,3)
Financing
China
53.00
୸
736,704
Beijing-Hyundai Motor C
ompany
(BHMC) (*
1)
Manufacturing
China
50.00
345,950
Hyundai WIA A
utomotive En
gine
(Shandong) C
ompany (W
AE)
Manufacturing
China
31.40
245,868
Motional AD LLC
(*1)
R&D
USA
25.97
1,025,263
Boston Dynami
cs, Inc.
R&D
USA
30.00
414,634
Hyundai Capi
tal B
ank Europe
GmbH
(HCBE)
Financing
Ger
man
y
49.00
498,050
Kia Corporation
(*4)
Manufacturing
Korea
33.88
11,620,132
Hyundai Engi
neering & C
onstruction
Co., Ltd.
Construction
Korea
20.95
2,935,786
Hyundai Trans
ys Inc.
Manufacturing
Korea
41.13
1,085,858
Hyundai WIA C
orporation
Manufacturing
Korea
25.35
729,053
Hyundai Autoe
ver Corp. (*
5)
IT service
Korea
31.59
410,935
Hyundai Comme
rcial Inc.
Financing
Korea
37.50
339,300
Hyundai Motor Securities C
o., Ltd.
Securities
Brokerage
Korea
25.43
314,532
Eukor Car Carri
ers Inc. (*
2)
Transportation
Korea
12.00
186,489
Haevichi Hote
ls & Res
o
rts C
o., Ltd.
Hotelkeeping
Korea
41.90
98,894
Others
1,441,669
୸
22,429,117
(*1)
Ea
ch of the jo
int arrange
ments in
which the G
roup retains
joint co
ntrol is structured thr
ough a sepa
rate entity a
nd there
are no
contractual te
rms stating t
h
at the
parties retain ri
ghts to th
e assets and
obligations for t
h
e liabil
ities relating
to the join
t
arrangemen
t or other relev
ant facts and circumst
ances. As a result
, the Group consid
ers that the parties th
at retain joint co
n
trol
in the arrang
ement have ri
ghts to the net
assets and classi
fies the joint arrang
ements as jo
int ventu
res. Also, there are
restri
ctions, w
h
ich req
u
ire co
nsent from t
he direc
tor w
ho is de
signa
ted by the ot
her in
vestors
, for c
ert
ain trans
actio
ns, such
as
payme
nt of di
vidend.
(*2)
As the Group is
cons
idered
to be able to e
xercis
e sig
nificant
influence by re
presentatio
n on the
board of
directors of
the
investe
e and
othe
r rea
sons, alt
hough the t
otal owners
hip perc
entage is le
ss than
20%, the inve
stme
nt is accounte
d for
using the
equity m
ethod.
(*3)
The entity is ca
tegorized as
a joi
nt vent
ure although
the G
roup’s
tota
l owners
hip per
centage
is a majo
rity share
of 53%, b
ecause
the G
roup does
not
have co
ntrol over the e
ntity
by vir
tue of
an ag
reem
ent with t
he othe
r investors.
(*4) During t
he year ended
December 31
, 2021, the n
ame of the compan
y was chang
ed from Kia Moto
rs Corporation
to Kia
Corporation.
(*5) During t
he year ended
December 31
, 2021, as the merg
er with Hyundai
Autron Comp
any Ltd., th
e subsid
iary of the Comp
any,
and HYUNDAI MNSOFT, In
c.,
the associate of the C
ompany, was comple
te
d, the G
roup’s ownership pe
rcentage wa
s chan
ged
from 28.4
8% to 31.5
9%.
ٻ
ٻ
ٻ
ٻ
ڏړٻ
ٻ
Investments in joint ventures a
nd associates
as
of December 31, 2020 a
re as follows.
Name of the company
Nature of
business
Location
Ownership
percentage
Book value
(%)
(In millio
ns of
Korean Won)
Beijing-Hyundai Motor C
ompany
(BHMC) (*
1)
Manufacturing
China
50.00
୸
779,958
Beiji
ng Hyundai Qiche F
inanci
ng
Company (BHAF
) (*1,3)
Financing
China
53.00
627,895
Hyundai WIA A
utomotive En
gine
(Shandong) C
ompany (W
AE)
Manufacturing
China
31.40
224,979
Motional AD LLC
(*1,4)
R&D
USA
26.00
1,053,282
Hyundai Capi
tal B
ank Europe
GmbH
(HCBE)
Fi
nancing
Ger
man
y
49.00
495,999
Kia Motors C
orporation
Manufacturing
Korea
33.88
9,972,824
Hyundai Engi
neering & C
onstruction
Co., Ltd.
Construct
ion
Korea
20.95
2,835,399
Hyundai Trans
ys Inc.
Manufacturing
Korea
41.13
1,017,906
Hyundai WIA C
orporation
Manufacturing
Korea
25.35
694,991
Hyundai Motor Securities C
o., Ltd.
Securities
brokerage
Korea
27.49
310,472
Hyundai Comme
rcial Inc.
Financing
Korea
37.50
261,601
Eukor Car Carri
ers Inc. (*
2)
Transportation
Korea
12.00
150,503
Hyundai Autoe
ver Corp.
IT service
Korea
28.48
158,073
Haevichi Hote
ls & Res
o
rts C
o., Ltd.
Hotelkeeping
Korea
41.90
97,655
Others
1,243,723
୸
19,925,260
(*1)
Ea
ch of the jo
int arrange
ments in
which the G
roup retains
joint co
ntrol is structured thr
ough a sepa
rate entity a
nd there
are no
contractual te
rms stating t
h
at the
parties retain ri
ghts to th
e assets and
obligations for t
h
e liabil
ities relating
to the join
t
arrangemen
t or other relev
ant facts and circumst
ances. As a result
, the Group consid
ers that the parti
es that retain joint con
t
rol
in the arrang
ement have ri
ghts to the net
assets and classi
fies the joint arrang
ements as j
oint ventu
res. Also, there are
restri
ctions, w
h
ich req
u
ire co
nsent from t
he direc
tor w
ho is de
signa
ted by the ot
her in
vestors
, for c
ert
ain trans
actio
ns, such
as
payme
nt of di
vidend.
(*2)
As the Group is
c
onsidere
d to be
able
to exerc
ise s
ignifica
n
t infl
uence by re
prese
ntation o
n the b
oard of
direc
tors of
the
investe
e and
othe
r rea
sons, alt
hough the t
otal owners
hip perc
entage is le
ss than
20%, the inve
stme
nt is accounte
d for
using the
equity m
ethod.
(*3)
The entity is ca
tegorized as
a join
t venture alth
ough the
Gr
oup’s tot
al ownershi
p perce
ntage
is a m
ajor
ity share
of 53%, b
ecause
the G
roup does
not
have co
ntrol over the e
ntity
by vir
tue of
an ag
reem
ent with t
he othe
r investors.
(*4) During t
he year ended
December 31
, 2020, the name o
f the company was ch
anged fro
m Hyundai-Apt
iv AD LLC to Motion
al
AD LLC.
ٻ
ٻ
ٻ
ٻ
ڏڔٻ
ٻ
(2)
The changes in investments in
joint ventures and asso
ciates for the year ended Decembe
r 31, 2021 are as follows.
Name of the company
Beginning of
the ye
ar
Acqui
sitio
ns
(disposals)
Share
of
profits (losses)
for the period
Dividends
Oth
ers (*
1)
End of th
e yea
r
(In millions of Korean Won)
BHAF
୸
627,895
୸
-
୸
50,724
୸
(15,880)
୸
73,965
୸
736,704
BHMC
779,958
-
(502,344
)
-
68,336
345,950
WAE
224,979
-
(3,432)
-
24,321
245,868
Motional
AD
LLC
1,053,282
-
(122,871)
-
94,852
1,025,263
Boston
Dynamics,
Inc.
(*2)
-
431,882
(36,010)
-
18,762
414,634
HCBE
495,999
-
(99)
-
2,150
498,050
Kia
Corporation
9,972,824
-
1,601,473
(137,318)
183,153
11,62
0,132
Hyundai Engi
neering &
Construct
ion
Co.,
Ltd.
2,835,39
9
-
82,42
1
(13,996)
31,962
2,935,786
Hyundai
Transys
Inc.
1,017,906
-
39,223
-
28,729
1,085,858
Hyundai
WIA
Corporation
694,991
-
16,637
(4,826)
22,251
729,053
Hyundai
Autoever
Corp.
158,073
-
24,876
(4,485)
232,471
410,935
Hyundai
Commercial
Inc.
261,601
-
67,187
(3,750)
14,262
339,300
Hyundai Motor Securities
Co., Ltd.
310,472
-
23,027
(5,444)
(13,523)
314,532
Eukor Car Carri
ers Inc.
150,503
-
22,457
-
13,529
186,489
Haevichi Hotels & Reso
rts
Co.,
Ltd.
97,655
-
980
-
259
98,89
4
Others
1,243,723
208,988
14,34
2
(12,344)
(13,040)
1,441,669
୸
19,925,260
୸
640,870
୸
1,278,591
୸
(198,043
)
୸
782,439
୸
22,429,117
(*1)
Oth
ers consis
t of changes in accu
mulated o
ther compreh
ensive income (l
oss) and o
thers.
(*2)
S
hare acqui
sition has b
een completed i
n the year end
ed December 31
, 2021, and th
e acquisi
tion cost is measured
as the cash
paid
during
the curren
t year, c
ash t
hat will be
paid i
n
the foll
owin
g year
, and t
he val
ue of pu
t option owne
d by ot
her inve
stors.
ٻ
ٻ
ٻ
ٻ
ڐڋٻ
ٻ
The changes in invest
ments in joint ventures
and a
ssociates for the yea
r ended December 31, 2020 are
as
follows.
Name of the company
Beginning of
the ye
ar
Acqui
sitio
ns
(disposals)
Share
of
profits (losses)
for the period
Dividends
Others (
*1)
End of th
e year
(In millions of Korean Won)
BHMC
୸
1,256,925
୸
-
୸
(498,581
)
୸
-
୸
21,614
୸
779,958
BHAF
577,810
-
46,908
-
3,177
627,895
WAE
154,136
76,683
(6,077)
-
237
224,979
Motional AD
LLC(*2)
-
1,294,367
(99,103)
-
(141,982)
1,053
,282
HCBE
159,948
330,158
1,219
-
4,674
495,999
Kia Motors C
o
rporation
9,655,017
-
505,155
(157,916)
(29,432)
9,972
,824
Hyundai Engi
neering &
Construct
ion Co., Lt
d.
2,859,169
-
2,166
(13,997)
(11,939)
2,835,39
9
Hyundai Trans
ys Inc.
1,026,563
-
(3,269)
-
(5,388)
1,017,906
Hyundai WIA C
o
rporati
on
682,526
-
20,022
(4,826)
(2,731)
694,991
Hyundai Motor Securities
Co., Ltd.
283,446
-
29,156
(4,839)
2,709
310,472
Hyundai Comme
rcial Inc.
255,8
00
-
43,937
-
(38,136)
261,601
Eukor Car Carri
ers Inc.
173,212
-
(13,300)
-
(9,409)
150,503
Hyundai
Autoever
Corp.
145,076
-
16,808
(4,246)
435
158,073
Haevichi Hotels & Reso
rts
Co.,
Ltd.
101,578
-
(2,802)
-
(1,121)
97,655
Others
1,044,084
164,664
61,437
(14,707)
(11,755)
1,243,723
୸
18,375,290
୸
1,865,872
୸
103,676
୸
(200,531
)
୸
(219,047
)
୸
19,925,260
(*1) O
thers
consist
of changes
in
acc
umulate
d other c
omprehensi
ve income (l
oss) a
nd o
thers.
(*2) The
joint ve
nture
was
incor
porate
d duri
ng the year
ended D
ecembe
r 31, 2020, a
nd the acqui
sition cost is
mea
sured a
s the fa
ir
value of
paid c
ash, c
ontrib
uted pa
tent licenses a
n
d the
provision of
services in exc
hange
for the s
hare
s of the joint
venture.
(3)
Summarized financia
l informa
tion of the Group’s maj
or join
t ventures an
d associates as of and for t
he year
ended December 31, 2021 is as
follows.
Name of the company
Current
assets
Non-current
assets
Current
liabilities
Non-current
liabilities
(In millions of Korean Won)
BHAF (*)
୸
5,648,345
୸
-
୸
4,258,337
୸
-
BHMC
2,877,226
3,897,225
5,047,580
984,476
WAE
648,858
530,099
185,159
255,961
Motional AD LLC
630,770
3,603,314
97,631
105,139
Boston D
ynamics, Inc.
117,854
250,999
55,254
79,823
HCBE
(*)
6,910,165
-
5,916,35
4
-
Kia
Corporation
29,205,4
83
37,644,514
21,56
2,636
10,374,805
Hyundai Engi
neering &
Construct
ion Co., Ltd.
14,555,535
5,091,172
7,616,041
2,594,756
Hyundai Trans
ys Inc.
3,592
,986
3,043,732
2,164
,191
1,786
,510
Hyundai WIA C
orporation
4,156,485
3,593,022
2,126,275
1,927,968
Hyundai Autoe
ver Corp.
1,471,052
875,071
721,374
248,927
Hyundai
Commercial
Inc.
(*)
10,001,0
66
-
8,699,01
8
-
Hyundai Motor Securities C
o., Ltd. (*)
8,806,128
-
7,645,418
-
Eukor Car Carri
ers Inc.
534,016
3,169,325
654,912
1,467,448
Haevichi Hot
els & R
esorts C
o
., Ltd.
44,922
409,187
235,954
44,458
ٻ
ٻ
ٻ
ٻ
ڐڌٻ
ٻ
Name of the company
Sales
Profit (loss) for
the period from
continuin
g
operations
Other
comprehensi
ve
income (loss)
Total
comprehensi
ve
income (loss)
(In millions of Korean Won)
BHAF (*)
୸
423,416
୸
95,703
୸
-
୸
95,703
BHMC
6,240,989
(1,012,933)
-
(1,012,933)
WAE
797,685
(4,226)
-
(4,226)
Motional AD
LLC
949
(516,204)
(5,025)
(521,229)
Boston D
ynamics, Inc.
66,779
(196,950)
-
(196,950)
HCBE
(*)
711,616
(325)
4,241
3,916
Kia
Corporation
69,862,3
66
4,760,311
664,223
5,424,53
4
Hyundai Engi
neering &
Construct
ion Co., Ltd.
18,065,534
549,501
168,103
717,604
Hyundai Trans
ys Inc.
8,143,951
90,623
66,409
157,032
Hyundai WIA C
orporation
7,527,739
56,071
131,926
187,997
Hyundai Autoe
ver Corp.
2,070,382
71,368
13,648
85,016
Hyundai Comme
rcial Inc.
(*)
482,087
185,303
(31,808)
153,495
Hyundai Motor Securities C
o., Ltd. (*)
853,770
117,749
913
118,662
Eukor Car Carri
ers Inc.
1,894,623
192,229
137,672
329,901
Haevichi Hot
els & R
esorts
Co., Ltd.
116,466
2,063
16
2,079
(*)
The companies operate
financ
ial busine
ss and t
heir total as
se
ts (liabilities) are
include
d in current assets (liabilitie
s)
as the compani
es
do not
disting
u
ish c
urrent
and no
n-current por
tion in their
separ
ate fina
ncial statem
ents.
Summarized financial
informa
tion of the
Group’s
major join
t ventures and associat
es as of and fo
r the year
ended December 31, 2
020 is as
follows.
Name of the company
Current
assets
Non-current
assets
Current
liabilities
Non-current
liabilities
(In millions of Korean Won)
BHMC
୸
4,213,182
୸
4,178,661
୸
6,050,736
୸
722,467
BHAF
(*)
6,077,42
7
-
4,892,720
-
WAE
577,626
640,138
273,051
279,354
Motional AD LLC
1,618,551
2,681,753
70,266
76,808
HCBE
(*)
5,635,284
-
4,648,02
7
-
Kia Motors C
orporation
26,093,382
34,397,061
21,097,5
89
9,501,182
Hyundai Engi
neering &
Construct
ion Co., Ltd.
13,341,687
4,540,331
6,410,469
2,705,171
Hyundai Trans
ys Inc.
3,279,222
2,747,382
2,200,265
1,381,699
Hyundai WIA C
orporation
3,987,965
3,731,941
1,985,718
2,208,328
Hyundai Motor Securities C
o., Ltd (*)
9,167,903
-
8,102,116
-
Hyundai Comme
rcial Inc.
(*)
9,369,111
-
8,075,656
-
Eukor Car Carri
ers I
nc.
318,448
2,849,023
524,472
1,390,993
Hyundai Autoe
ver Corp.
797,280
279,747
417,384
97,262
Haevichi Hot
els & R
esorts C
o
., Ltd.
37,870
412,409
219,589
59,072
ٻ
ٻ
ٻ
ٻ
ڐڍٻ
ٻ
Name of the company
Sales
Profit (loss) for
the period from
continuin
g
operations
Other
comprehensi
ve
income (loss)
Total
comprehensi
ve
income (loss)
(In millions of Korean Won)
BHMC
୸
6,872,866
୸
(1,152,001)
୸
-
୸
(1,152,001)
BHAF
(*)
229,501
88,503
-
88,503
WAE
962,901
(41,3
66)
-
(41,366)
Motional AD
LLC
645
(231,530)
(16)
(231,546)
HCBE
(*)
540,080
5,216
8,080
13,296
Kia Motors C
o
rporation
59,168,096
1,487,585
(112,980)
1,374,605
Hyundai Engi
neering &
Construct
ion Co., Ltd.
16,970,859
227,697
(90,687)
137,010
Hyundai Trans
ys Inc.
7,253,615
(5,164)
(9,813)
(14,977)
Hyundai WIA C
orporation
6,592,242
53,672
(22,193)
31,479
Hyundai Motor Securities C
o., Ltd. (*)
839,993
84,299
13,792
98,091
Hyundai Comme
rcial Inc.
(*)
440,093
122,554
9,828
132,382
Eukor Car Carri
ers I
nc.
1,292,324
(110,202)
(77,690)
(187,892)
Hyundai Autoe
ver Corp.
1,562,593
60,786
1,494
62,280
Haevichi Hot
els & R
esorts C
o
., Ltd.
91,780
(5,683)
(654)
(6,337)
(*)
The companies opera
te fina
ncial
business and t
h
eir total a
s
sets (liabilitie
s) are incl
uded in current assets (lia
bilities)
as the companies
do not
disting
u
ish c
urrent
and no
n-current por
tion in their
separ
ate fina
ncial statem
ents.
(4)
Summarized additi
onal fina
ncial
information of t
he Grou
p’s maj
or joint
ventures as of
and for the year
ended December 31, 2
021 is as follows
.
Name of the
company
Cash an
d
cash
equivalents
Current
financial
liabilities
Non-current
financial
liabilities
Depreciation
and
amortization
Interest
income
Interest
expenses
Income tax
expense
(In millions of Korean Won)
BHAF(*)
୸
860,234
୸
3,993,580
୸
-
୸
8,155
୸
419,195
୸
175,403
୸
32,648
BHMC
975,177
379,970
723,688
481,351
11,599
81,288
2,665
Motional AD
LLC
188,571
14,407
71,982
73,807
3,642
-
(7,875)
(*)
Operating financ
e business of
which to
tal assets (lia
bilities) are inc
luded in current fina
ncial lia
bilitie
s as BHAF does n
ot distinguish
current and n
on-curre
nt portio
n in its separate financia
l statements.
Summarized
additional financial informatio
n of the Group’s majo
r joint
ventures as of
and for the year ended Decem
b
er
31, 2020 is as
follows.
Name of the
company
Cash an
d
cash
equivalents
Current
financial
liabilities
Non-current
financial
liabilities
Depreciation
and
amortization
Interest
income
Interest
expenses
Income tax
expense
(In millions of Korean Won)
BHMC
୸
721,882
୸
634,448
୸
562,975
୸
478,859
୸
12,959
୸
88,336
୸
1,153
BHAF
(*)
1,513,718
4,603,376
-
7,156
428,836
185,5
7
8
29,937
Motional AD
LLC
1,577,353
9,756
60,970
43,646
1,739
4
(11,664)
(*)
Operating financ
e business of
which to
tal assets (lia
bilities) are inc
luded in current fina
ncial lia
bilitie
s as BHAF does n
ot distinguish
current and n
on-curre
nt portio
n in its separa
te financia
l stateme
nts.
ٻ
ٻ
ٻ
ٻ
ڐڎٻ
ٻ
(5)
Reconciliation
of the Group’s share of n
et assets of
the Group’s major join
t ventures and associates to their
carrying amount
s as of De
cember 31, 2
021 is as follows.
Name of the company
Group’s share
of
net asset
s
Goodwill
Unrealised
profit (loss
) and
others
Carrying
amounts
(In millions of Korean Won)
BHAF
୸
736,704
୸
-
୸
-
୸
736,704
BHMC
371,198
-
(25,248)
345,950
WAE
(*)
238,021
7,809
38
245,868
Motional AD LLC
1,047,83
4
-
(22,571)
1,025,263
Boston D
ynamics, Inc.
(*)
199,325
209,428
5,881
414,634
HCBE
474,523
22,341
1,186
498,050
Kia
Corporati
on
11,505,153
197,089
(82,110)
11,620,132
Hyundai Engi
neering & C
onstruction
Co., Ltd. (*)
2,204,424
731,362
-
2,935,786
Hyundai Trans
ys Inc.
1,070,93
1
-
14,927
1,085,858
Hyundai WIA C
o
rporati
on
823,381
-
(94,328)
729,053
Hyundai Autoe
v
er Cor
p. (*)
352,013
58,822
100
410,935
Hyundai Comme
rcial Inc.
339,300
-
-
339,300
Hyundai Motor Securities C
o., Ltd.
275,563
40,052
(1,083)
314,532
Eukor Car Carri
ers Inc.
186,227
-
262
186,489
Haevichi Hot
els & Re
sorts C
o., Ltd. (*)
95,318
3,576
-
98,894
(*)
The difference betwe
en the c
arrying a
mount
and the fair valu
e of th
e investee’
s identifiable a
ssets and liabi
lities as of
t
he ac
quisition
date is incl
uded in the amou
nt of net asse
ts.
Reco
nciliation of
the Group’s share of ne
t assets of the Group’s major joint ventures and
associates to their carrying
amounts as of December 3
1
, 2020 is as
follows.
Name of the company
Group’s share
of
net assets
Goodwill
Unrealised
profit (loss
) and
others
Carrying
amounts
(In millions of Korean Won)
BHMC
୸
809,320
୸
-
୸
(29,362)
୸
779,958
BHAF
627,895
-
-
627,895
WAE
(*)
217,132
7,809
38
224,979
Motional AD LLC
1,079,841
-
(26,559)
1,053,282
HCBE
472,534
22,341
1,124
495,999
Kia Motors C
orporation
9,857,162
197,089
(81,427)
9,972,824
Hyundai Engi
neering & C
onstruction
Co., Ltd. (*)
2,104,036
731,362
1
2,835,399
Hyundai Trans
ys Inc.
1,003,185
-
14,721
1,017,906
Hyundai WIA C
o
rporati
on
789,544
-
(94,553)
694,991
Hyundai Motor Securities C
o., Ltd.
271,503
40,052
(1,083)
310,472
Hyundai Comme
rcial Inc.
261,601
-
-
261,601
Eukor Car Carri
ers Inc.
150,241
-
262
150,503
Hyundai Autoe
ver Corp.
158,073
-
-
158,073
Haevichi Hote
ls & Re
sorts C
o., Ltd. (*)
94,079
3,576
-
97,655
(*)
The difference betwe
en the c
arrying a
mount
and the fair valu
e of th
e investee’
s identifiable a
ssets and liabi
lities as of
t
he a
cquisitio
n
date is incl
uded in the amou
nt of net assets.
ٻ
ٻ
ٻ
ٻ
ڐڏٻ
ٻ
(6)
The market
price of majo
r listed equity s
ecurities as of
December 31, 2021 is as
follows.
Name of the company
Price per share
Total numbe
r of
shares
Market
value
(I
n millions of Korean Won
, except price per share)
Kia Corporation
୸
82,200
137,318,
251
୸
11,287,560
Hyundai Engi
neering & C
onst
ruction Co., Ltd.
44,450
23,327,400
1,036,903
Hyundai Autoe
v
er Cor
p.
138,000
8,664,334
1,195,678
Hyundai WIA C
orporation
79,90
0
6,893,596
550,798
Hyundai Motor Securities C
o., Ltd.
12,35
0
8,065,595
99,610
14. FINANCIAL SERV
ICES RECEIVA
BLES:
(1)
Financial services receivables as
of December
31,
2021 and
December 31, 20
20 are as foll
ows.
Description
December 31,
2021
December 31,
2020
(In millions of Korean Won)
Loans
୸
61,959,509
୸
52,461,355
Card receivables
18,728,408
17,094,598
Financial lease receivables
2,123,472
2,429,420
Others
35,291
34,407
82,846,680
72,019,780
Loss all
owance
(1,551,9
87)
(1,685,229)
Loan originat
ion fee
(231,762)
(643,063)
Present val
ue discount acc
ounts
(33,799)
(26,278)
୸
81,029,132
୸
69,665,210
(2) Transfer of
financial services
receivables
As of December 31, 2021 and
December 31, 2020, the Grou
p has
issued asset-back
ed securities with loan obligations for
which card receivab
les are underlying asse
ts and related
asset-backed securities hav
e the right of recour
se. As of
December 31, 202
1, the carrying amou
nt of financial ass
ets that
were transferred b
ut not de
recognized (incl
uding inte
r-
company bonds
) amou
nted to
୸
26,292,997
million and its fair value is
୸
26,213,213
milli
on. The carr
ying a
mount of
related liabilities is
୸
19,352,363 m
illion and its
fair value is
୸
19,225,
190 million, thus
, net position of fair value is
୸
6,988,023 million. As of D
ecember 31, 2020
, the carrying amount of financial as
sets that were transferred but not
derecognized (incl
uding i
n
ter
-company bonds
) amounted t
o
୸
19
,287,184 m
illion and its fair v
alue is
୸
19,308,126
million. The car
rying amount of
related liabilities is
୸
13,918,870 million and its fair value is
୸
14,036,642 m
illion, thu
s
net position
of fair value is
୸
5,27
1,484 million.
ٻ
ٻ
ٻ
ٻ
ڐڐٻ
ٻ
(3)
The changes in loss
allowance of fi
na
ncial services receivabl
es for the year
ended
December 31,
2021 a
re as follows.
Loan
Obligation
s
12-Month
expected
credit losses
Lifetime
expected
credit losses
Description
Not Impa
ired
Impaired
Total loan
obligatio
ns
(In millions of Korean Won)
Beginning o
f the year
୸
441,192
୸
300,082
୸
315,136
୸
1,056,410
Transfer to 1
2-Month expec
ted
credit losses
71,703
(67,049)
(4,654)
-
Transfer to lifetime expected
credit losses
(57,656)
61,63
3
(3,977)
-
Transfer to cre
dit-impaired
financial ass
ets
(2,773)
(5,866)
8,639
-
Impairment l
oss (revers
al)
(27,338)
128,769
135,156
236,587
Collection (wr
ite-off)
5
0
(114,
436)
(246,714
)
(361,100)
Dispos
als and others
-
-
234
234
Effect of foreig
n exchange
differences
24,029
13,29
2
214
37,535
End of the yea
r
୸
449,207
୸
316,425
୸
204,034
୸
969,666
Card
receivables
12-Month
expected
credit losses
Lifetime
expected
credit losses
Description
Not Impa
ired
Impaired
Total card
receivables
(In millio
ns of Korean Won)
Beginning o
f the year
୸
186,440
୸
142,390
୸
225,298
୸
554,128
Transfer to 1
2-Month expec
ted
credit losses
49,439
(49,287)
(152)
-
Transfer to lifetime expected
credit losses
(14,871)
15,045
(174)
-
Transfer to cre
dit-impaired
financial as
sets
(117,994)
(56,471)
174,465
-
Impairment l
oss (reversa
l)
120,496
111,716
99,160
331,372
Collection (wr
ite-off)
-
-
(332,434)
(332,434
)
Dispos
als and others
(27,801)
(2)
(11,563)
(39,366)
End of the yea
r
୸
195,709
୸
163,391
୸
154,600
୸
513,700
Others
Total
Allowances
12-Month
expected
credit losses
Lifetime
expected
credit losses
Description
Not Impa
ired
Impaired
To
tal others
(I
n millions of Korean Won)
Beginning o
f the year
୸
18,032
୸
6,368
୸
50,291
୸
74,691
୸
1,685,229
Transfer to 1
2-Month expec
ted
credit losses
3,649
(1,461)
(2,188)
-
-
Transfer to lifetime expected
credit losses
(1,879)
2,388
(509)
-
-
Transfer to cre
dit-impaired
financial as
sets
(144)
(233)
377
-
-
Impairment loss
(reversal)
(5,359)
1,057
(1,449)
(5,751)
562,208
Collection (wr
ite-off)
-
-
(319)
(319)
(693,853)
Dispos
als and others
-
-
-
-
(39,132)
Effect of foreig
n exchange
differences
-
-
-
-
37,535
End of the yea
r
୸
14,299
୸
8,119
୸
46,203
୸
68,621
୸
1,551,987
ٻ
ٻ
ٻ
ٻ
ڐڑٻ
ٻ
The changes in allowance f
or doubtful
accounts
of financial
services receivables
for the ye
ar ended December 31,
2020 are as fol
lows.
Lo
an
Obligations
12-Month
expected
credit losses
Lifetime
expected
credit lo
sses
Description
Not Impa
ired
Impaired
Total loan
obligatio
ns
(In millions of Korean Won)
Beginning o
f the year
୸
356,282
୸
289,464
୸
319,719
୸
965,465
Transfer to 1
2-Month expec
ted
credit losses
64,127
(60,543)
(3,584)
-
Transfer to lifetime expected
credit losses
(23,721)
25,806
(2,085)
-
Transfer to cre
dit-impaired
financial ass
ets
(4,071)
(10,396)
14,467
-
Impairment l
oss (reversa
l)
65,196
310,654
283,921
659,771
Collection (wr
ite-off)
5
(241,481
)
(148,
399)
(389,875)
Dispos
als and others
(31)
(4)
(148,693
)
(148,728)
Effect of foreig
n exchange
differences
(16,595)
(13,418)
(210)
(30,223)
End of the yea
r
୸
441,192
୸
300,082
୸
315,136
୸
1,056,410
Card
receivables
12-Month
expected
credit losses
Lifetime ex
pected credit losses
Description
Not Impa
ired
Impaired
Total card
receivables
(In millio
ns of Korean Won)
Beginning o
f the year
୸
165,702
୸
145,892
୸
131,201
୸
442,795
Transfer to 1
2-Month expec
ted
credit losses
49,038
(48,900)
(138)
-
Transfer to lifetime expected
credit losses
(11,3
60)
11,487
(127)
-
Transfer to cre
dit-impaired
financial as
sets
(36,499)
(13,123)
49,622
-
Impairment l
oss (reversa
l)
44,514
67,788
105,270
217,572
Collection (wr
ite-off)
-
-
(50,972)
(50,972)
Dispos
als and others
(24,955)
(20,754)
(9,558)
(55,2
67)
End of the yea
r
୸
186,440
୸
142,390
୸
225,298
୸
554,128
Others
Total
Allowances
12-Month
expected
credit losses
Lifetime
expected
credit losses
Description
Not Impa
ired
Impaired
To
tal others
(I
n millions of Korean Won)
Beginning o
f the year
୸
15,508
୸
9,046
୸
47,741
୸
72,295
୸
1,480,555
Transfer to 1
2-Month expec
ted
credit losses
5,099
(2,647)
(2,452)
-
-
Transfer to
lifetime expected
credit losses
(1,331)
2,228
(897)
-
-
Transfer to cre
dit-impaired
financial as
sets
(207)
(840)
1,047
-
-
Impairment l
oss (revers
al)
1,190
(598)
5,708
6,300
883,643
Collection (wr
ite-off)
-
-
(798)
(798)
(441,645)
Dispos
als and others
(2,227)
(821)
(58)
(3,106)
(207,101)
Effect of foreig
n exchange
differences
-
-
-
-
(30,223)
End of the yea
r
୸
18,032
୸
6,368
୸
50,291
୸
74,691
୸
1,685,229
ٻ
ٻ
ٻ
ٻ
ڐڒٻ
ٻ
(4)
Gross investme
nts in finan
cial leases and their pr
esen
t value of m
inimum lease rece
ipts as of
Decemb
er
31, 2021
and December 31,
2020 are as follows
.
December 31, 2021
December 31, 20
20
Description
Gross
investm
ents
in financial
leases
Present value
of minimum
lease payment
receivable
Gross
investm
ents
in financial
leases
Present value
of minimum
lease payment
receivable
(In millio
ns of Korean Won)
Not later than one year
୸
888,358
୸
788,739
୸
979,318
୸
875,646
Later than one year and
not later
than
five
years
1,421,468
1,324,645
1,643,708
1,542,578
Later than five
years
6,475
6,236
6,908
6,691
୸
2,316,301
୸
2,119,620
୸
2,629,934
୸
2,424,915
(5)
Unearned interest income of fi
nancial leases as of
December 31, 2
021 and December
31, 2020 are as follows
.
Description
December 31, 2021
December 31, 20
20
(In million
s of Korean Won)
Gross inv
estments in f
inancial lease
୸
2,316,301
୸
2,629,934
Net lease investments:
Present value of minimum lea
se payment receivable
2,119,620
2,424,915
Present value of
unguaranteed residual val
ue
3,852
4,505
2,123,472
2,429
,420
Unearned interes
t income
୸
192,829
୸
200,514
15.
INVESTMENTS IN OPER
ATING LEASES (AS A LESSOR):
(1)
Investments in operating leas
es
as of Decembe
r 31, 2
021 an
d December 31,
2020 are as fo
llows.
Description
December 31, 2021
December 31, 2020
(In millio
ns of Korean Won)
Acquisition
cost
୸
29,980,884
୸
23,322,479
Accumulated de
preciation
(3,477,632)
(2,688,9
50)
Accumulated i
mpairment
loss
(175,256)
(131,838
)
୸
26,327,996
୸
20,501,691
(2)
Future mini
mum lease payme
nt receivable related to inves
tments in operatin
g leases as
of December 31, 2
021 and
December 31, 2020 i
s as foll
ows.
Description
December 31, 20
21
December 31, 2020
(In millio
ns of Korean Won)
Not later than one year
୸
5,323,499
୸
4,091,315
Later than one year and
not later
than five years
5,744,918
4,454
,173
Later than five years
77
-
୸
11,068,494
୸
8,545,488
ٻ
ٻ
ٻ
ٻ
ڐړٻ
ٻ
16.
BORROWINGS AND DEBENTURE
S:
(1)
Short-term borrowings as
of December 3
1, 2021 and Decem
ber 31, 2020 are as follows.
Description
Lender
Annual
interest rate
December 31,
2021
December 31,
2020
(%)
(In m
illions of Korean Won)
Overdrafts
Citi
Bank and others
0.11~1.63
୸
456,044
୸
650,851
General bor
rowings
Korea Development B
ank
and others
0.12~10.13
3,994,073
3,735,030
Borrowin
gs collateralized
by trade receivables
KEB Hana B
ank and othe
rs
0.00001~9.45
3,059,551
2,914,830
Banker’s Usance
KEB Hana Bank and othe
rs
0.15~4.40
786,755
373,230
Commer
cial pape
r
Shinhan Bank a
nd others
0.19~2.80
4,791,41
3
4,827,56
8
Asset-backed securities
RBC and others
1.46~1.62
-
1,279,161
୸
13,087,836
୸
13,780,670
(2)
Long-term de
bt as of December 31, 2021 an
d December 31,
2020 are as follows
.
Description
Lender
Annual
interest rate
December 31,
2021
December 31,
2020
(%)
(In millio
ns of Korean Won)
General bor
rowings
Mizuho Bank and oth
ers
0.01~12.17
୸
9,738,949
୸
8,911,475
Credit facilities
NH Bank and others
1.52~2.61
540,600
551,100
Commer
cial pape
r
BNK Investm
ent & Securities
and others
1.19~2.12
1,650,000
1,490,00
0
Asset-backed securities
HSBC
and others
0.55~1.85
4,136,643
5,652,711
Others(*)
NH Investme
nt & Securities
and others
392,032
435,607
16,458,2
24
17,040,893
Less: pres
ent value disc
ounts
(88,059)
(90,201)
Less: current m
aturities
(5,702,434)
(4,223,968)
୸
10,667,731
୸
12,726,724
(*) The
Group tr
ans
ferre
d a port
ion
of its v
oting shares t
o a t
hird pa
rty with the to
tal revenue s
wap
agree
ment. How
ever, t
he G
roup
still
recogniz
es it
as the
financial a
sset b
ecause the Group still owns the majority o
f the risks and rewards of ownershi
p of the transferred
share
s. Also, t
he Group rec
ognize
d the amount
rec
eived from
disposa
l as bor
rowings
.
(3)
Debentures as
of December 31, 20
21 and Decembe
r 31, 2020 are as
follows.
Description
Latest
maturity
date
Annual
interest rate
December 31,
2021
December 31,
2020
(%)
(In
millions of Korean Won)
Non-guaranteed publ
ic debent
ures
June
30,
2031
0.96~3.38
୸
ٻ
31,533,051
୸
ٻ
30,083,284
Non-guaranteed pri
vate debentures
April 8, 2
030
0.80~6.38
27,604,469
16,774,640
Asset-backed securities
June
15,
2028
0.12~3.29
19,359,999
13,931,180
78,497,519
60,789,104
Less: di
scount on deb
entures
(162,242)
(113,706)
Less: current m
aturities
(14,876,468)
(11,880,037)
୸
ٻ
63,458,809
୸
ٻ
48,795,361
ٻ
ٻ
ٻ
ٻ
ڐڔٻ
ٻ
17. PR
OVISION
S:
(1)
Provisions as of De
cember 31,
2021 and Dece
mber 31,
2020 are as
follows.
Description
December 31,
2021
December 31,
2020
(In millions of Korean Won)
Warran
ty
୸
9,048,185
୸
8,514,173
Other long-te
rm employee benefits
676,432
729,996
Others
1,154,167
1,126,719
୸
10,878,784
୸
10,370,888
(2) The changes
in provisions for the
year
ended Decem
ber 31, 2021 a
re as follows.
Descripti
on
Warranty
Other long-te
rm
employee benefits
Others
(In million
s of Korean Won)
Beginning o
f the year
୸
8,514,173
୸
ٻ
729,996
୸
ٻ
1,126,719
Charged
2,900,638
42,595
680,707
Utilized
(2,551,716)
(96,7
13)
(631,469
)
Effect of foreig
n exchange
differences
and others
185,090
554
(21,790)
End of the yea
r
୸
9,048,185
୸
ٻ
676,432
୸
ٻ
1,154,167
The changes in pr
ovisions for
the year en
ded December 31, 2020 a
re as follows.
Description
Warranty
(*)
Other long-te
rm
employee benefits
Others
(In million
s of Korean Won)
Beginning o
f the year
୸
5,447,307
୸
ٻ
726,356
୸
ٻ
971,266
Charged
5,170,165
82,965
739,545
Utilized
(1,963,782)
(77,3
24)
(573,081
)
Effect of foreign exchange differences
and others
(139,517)
(2,001)
(11,011)
End of the yea
r
୸
8,514,173
୸
ٻ
729,996
୸
ٻ
1,126,719
(*)
During the year en
ded December 31
, 2020, the Grou
p has reflected effect o
f new in
formation and l
onger period
of histori
cal
claim data i
n the measuremen
t of warranty
provision
s in relation to th
e recall of thet
a 2 and other engin
es.
18. OTHER FINANCIAL LIA
BILITIES:
(1)
Other financial liabilities as of D
ecember 31, 2
021 are as fol
lows.
December 31, 2021
Description
Current
Non-current
(In millions of Korean Won)
Financial liabilities m
easured at FVPL
୸
674
୸
ٻ
53,427
Derivative liabilities th
at are effective h
edging instruments
54,365
32,705
Financial Liabilities measu
red at amortized
cost
148
1,126
୸
55,187
୸
ٻ
87,258
ٻ
ٻ
ٻ
ٻ
ڑڋٻ
ٻ
(2)
Other financ
ial liabilities as of December 31, 2020 are as follows.
December 31, 2020
Description
Current
Non-current
(In millions of Korean Won)
Financial liabilities m
easured at FVPL
୸
5,285
୸
ٻ
25,759
Derivative liabilities th
at are effective hedgin
g instruments
95,043
433,7
48
୸
100,328
୸
ٻ
459,507
19. OT
HER
LIABILIT
IES:
Other liabilities as of Decem
ber 31,
2021 and December
31, 2020 are as follows.
December 31, 20
21
December 31, 2020
Description
Current
Non-current
Current
Non-current
(In millions of Korean Won
)
Advances received
୸
1,235,937
୸
ٻ
42,482
୸
ٻ
1,080,726
୸
ٻ
22,580
Withhol
dings
968,318
197,714
1,094,17
7
194,927
Accrued
ex
penses
2,851,174
-
2,957,418
-
Unearned
inc
ome
864,536
2,356,667
742,4
84
1,705,607
Due to customers
for cont
ract
work
902,124
-
855,866
-
Others
618,031
747,755
561,9
14
689,638
୸
7,440,120
୸
ٻ
3,344,618
୸
ٻ
7,292,585
୸
ٻ
2,612,752
20. FINANCIAL
INSTRUMEN
TS:
(1)
Financial assets by categories as of December
31, 2021 are as follows
.
Description
Financial
assets
measured at
FVPL
Financial assets
measured at
amortized cost
Financial
assets
measured at
FVOCI
Derivative
assets that are
effective
hedging
instrum
ents
Book value
Fair value
(In millio
ns of Korean Won)
Cash an
d
cash equivalent
s
୸
-
୸
12,795,554
୸
-
୸
-
୸
12,795,554
୸
12,795,554
Short-term an
d long-
term financial
instrum
ents
-
7
,2
55,7
43
-
-
7
,25
5,7
43
7,
255,
743
Trade notes and
accounts receivable
-
3,284,453
-
-
3,284,453
3,284,453
Other receivables
-
2,076,803
-
-
2,076,80
3
2,076,803
Other
financial
assets
12,472,100
27,195
2,911,523
525,114
15,935,932
15,935,932
Other
assets
23,568
331,353
-
-
354,921
354,921
Financial services
receivables
-
81,029,132
-
-
81,029,132
81,059,639
୸
12,495,668
୸
106,800,
233
୸
2,911,523
୸
525,114
୸
122,732,
538
୸
122,763,
045
ٻ
ٻ
ٻ
ٻ
ڑڌٻ
ٻ
Financial assets by categories as of December 31,
2020 are as follows.
Description
Financial
assets
measured at
FVPL
Financial assets
measured at
amortized cost
Financial
assets
measured at
FVOCI
Derivative
assets that are
effective
hedging
instrum
ents
Book value
Fair value
(In millio
ns of Korean Won)
Cash an
d
cash equivalent
s
୸
-
୸
9,862,136
୸
-
୸
-
୸
9,862,136
୸
9,862,136
Short-term an
d long-
term financial
instrum
ents
-
7,281,554
-
-
7,281,554
7,281,554
Trade notes and
accounts receivable
-
3,408,241
-
-
3,408,241
3,408,241
Other receivables
-
3,025,83
5
-
-
3,025,835
3,025,835
Other financial
asset
s
13,093,4
57
37,965
2,322,944
221,969
15,676,335
15,676,335
Other
assets
24,20
3
303,986
-
-
328,189
328,189
Financial services
receivables
-
69,665,210
-
-
69,665,210
70,435,392
୸
13,117,660
୸
93,584,927
୸
2,322,944
୸
221,969
୸
109,247,
500
୸
110,017,
682
(2)
Finan
cial liabilities by catego
ries as of December 31, 2021 are as follows.
Description
Financial liab
ilities
measured at FVPL
Financial liab
ilities
measured at
amortized cost
Derivative liab
ilities
that are effective
hedging ins
truments
Book value
Fair value
(In millions of Korean Won)
Trade notes and
accounts paya
ble
୸
-
୸
9,155,255
୸
-
୸
9,155,255
୸
9,155,255
Other
payables
-
5,422,320
-
5,422,320
5,422,32
0
Borrowings
and
debentures
-
107,793,278
-
107,793,
278
108,112,411
Other financial liabilities
54,101
1,274
87,07
0
142,445
142,445
Lease liabilities
-
950,572
-
950,572
950,572
Other liabilities
-
2,415,891
-
2,415,891
2,415,891
୸
54,101
୸
125,738,
590
୸
87,070
୸
125,
879
,761
୸
126,198,
894
Fin
ancial liabilities by categ
ories as of December 31, 2020 are as follows.
Description
Financial liab
ilities
measured at
FVPL
Financial liab
ilities
measured at
amortized cost
Derivative liab
ilities
that are effective
hedging ins
truments
Book value
Fair value
(In
millions of Korean Won)
Trade notes and
accounts paya
ble
୸
-
୸
8,793,179
୸
-
୸
8,793,179
୸
8,793,179
Other
payables
-
5,280,286
-
5,280,286
5,280,286
Borrowings
and
debentures
-
91,406,760
-
91,406,760
92,947,639
Other financial liabilities
31,044
-
528,7
91
559,835
559,8
35
Lease liabilities
-
757,044
-
757,044
757,044
Other liabilities
-
2,519,044
-
2,519,044
2,519,044
୸
31,044
୸
108,756,
313
୸
528,791
୸
109,316,
148
୸
110,857,
027
ٻ
ٻ
ٻ
ٻ
ڑڍٻ
ٻ
(3)
Fair v
alue estimation
The Group categorizes the ass
ets and liabilities measured at fair
value into the following t
hre
e-level fair value hierarchy
in accordance with the inputs
used
for fair value measureme
nt.
x
Level 1: Quoted prices (
unadjusted) in active markets fo
r identical assets or liabilities.
x
Level 2: Inputs other than quoted p
rices included within Level 1 that ar
e observable for the asset or liability, either
directly (i.e. as prices) or in
dir
ectly (i
.e. derived f
rom prices
).
x
Level 3: Inputs fo
r the asset or liability that are not based o
n observable market data (unobservab
le inputs)
Fair value measurements of fi
nancial inst
ruments by fair value
hierarchy levels as of Decemb
er 31, 202
1 are as follows.
December 31, 2021
Description
Level 1
Level 2
Level 3
Total
(In millions of Korean Won)
Financial assets
:
Financial assets measured
at FVPL
୸
107,290
୸
12,226,048
୸
162,330
୸
12,495,668
Derivative assets that are
effective hedging i
nstruments
-
525,114
-
525,114
Financial assets measured
at FVOC
I
1,561
,959
435,797
913,767
2,911,52
3
୸
1,669,249
୸
13,186,959
୸
1,076,097
୸
15,932,305
Financial liab
ilities:
Financial liabilities m
easured
at FVPL
୸
-
୸
962
୸
53,139
୸
54,101
Derivative liabilities th
at are
effective hedging i
nstruments
-
87,070
-
87,07
0
୸
-
୸
88,032
୸
53,139
୸
141,171
Fair value measu
rements of financial instrum
ents by fair
value hierarc
hy levels as of Dece
mber 31, 2020 are as
follows.
December 31, 2020
Description
Level 1
Level 2
Level 3
Total
(In millions of Korean Won)
Financial assets
:
Financial assets measured
at FVPL
୸
96,561
୸
12,506,079
୸
515,020
୸
13,117,660
Derivative assets that are
effective hedging i
nstruments
-
221,969
-
221,969
Financial assets measured
at FVOC
I
1,264
,786
318,489
739,669
2,322,94
4
୸
1,361,347
୸
13,046,537
୸
1,254,689
୸
15,662,573
Financial liab
ilities:
Financial liabilities m
easured
at FVPL
୸
-
୸
31,044
୸
-
୸
31,044
Derivative liabilities th
at are
effective hedging i
nstruments
-
528,791
-
528,7
91
୸
-
୸
559,835
୸
-
୸
559,835
ٻ
ٻ
ٻ
ٻ
ڑڎٻ
ٻ
The changes in financi
al ins
truments clas
sified as Level 3 for the yea
r ended Decembe
r 31, 2021 are
as follows.
Descri
p
tion
Beginni
ng
of the
perio
d
Purchases
Disposals
Valuation
Others
End of
the peri
od
(In millions of Korean Won)
Financial asse
ts measure
d
at FVPL
୸
515,
020
୸
38,07
6
୸
(
411,334
)
୸
20,56
8
୸
-
୸
162,330
Financial asse
ts measure
d
at FVOCI
7
39,
669
6
6,580
(
2,579
)
73,80
5
36,292
913,767
Financial lia
bilities measured
at FVPL
-
52,323
-
816
-
53,139
The changes in financial i
nstruments clas
sified as Leve
l 3 f
o
r the year en
ded December 3
1
, 2020 are
as follows.
Description
Beginni
ng
of the
perio
d
Purchases
Disposals
Valuatio
n
Others
End of
the peri
od
(In millions of Korean Won)
Financial asse
ts measure
d
at FVPL
୸
572,618
୸
38,70
4
୸
(
24,84
2
)
୸
(
77,76
7
)
୸
6,307
୸
515,020
Financial asse
ts measure
d
at FVO
CI
748,091
35,74
5
-
(52,03
0)
7,863
739,669
(4)
Fina
ncial assets and liabilitie
s subject to o
ffsetting, and f
inancial instruments sub
ject to an enforceable master
netting
arrangement or similar agree
ment as of December 31, 2021 are as
follows.
Descri
p
tion
Gross
amount
s
of r
ecogn
ized
financi
al assets
and li
abiliti
es
Gross
amount
s
of r
ecogn
ized
financi
al assets
and li
abiliti
es
set off in the
consoli
dated
statem
ent of
financi
al
p
ositio
n
Net a
mounts
of
financi
al assets
and li
abiliti
es
pre
sen
ted in the
consoli
dated
statem
ent o
f
financi
al
p
ositio
n
Relate
d
amou
nts n
ot
set
of
f in the
consoli
dated
statem
ent o
f
financi
al
positi
on -
financi
al
instr
uments
Relate
d
amou
nts n
ot
set off in the
statem
ent o
f
financi
al
positi
on -
co
llater
al
recei
ved
(p
led
g
ed
)
Net
a
mounts
(In mil
lions o
f Korean W
on)
Fina
ncial
assets
:
Tra
de not
es
and acc
ounts
recei
vabl
e
୸
3,519,2
84
୸
234,
831
୸
3,284
,453
୸
-
୸
-
୸
3,284
,453
Other
rec
eiva
bles
2
,573,
976
497
,173
2
,076,
803
-
-
2,076,803
Fina
ncial
ass
ets me
asur
ed at
FVPL
14,534
-
14,5
34
21
-
14,5
13
Deriva
tive as
sets that ar
e
effe
ctiv
e hed
g
in
g
ins
trument
s
(
*
)
52
5,11
4
-
525,
114
18,204
-
506,91
0
୸
6,632
,908
୸
732,
004
୸
5,900
,904
୸
18,2
25
୸
-
୸
5,882
,679
Financ
ial
liab
iliti
es:
Tra
de not
es
and acc
ounts
p
a
y
able
୸
9,640,1
33
୸
484,
878
୸
9,155
,255
୸
-
୸
-
୸
9,155
,255
Other
pay
ables
5,
669,446
247,1
26
5,422
,320
-
-
5
,422,
320
Financ
ial liabili
ties m
easured at
FVPL
54,101
-
54,1
01
21
-
54,0
80
Deriva
tive li
abilit
ies tha
t are
effe
ctiv
e hedg
ing ins
tru
ments (*)
87,070
-
87,0
70
18,204
-
68,8
66
୸
15,450
,75
0
୸
732,
004
୸
14,71
8,746
୸
18,2
25
୸
-
୸
14,70
0,521
(*)
These are de
rivative a
ssets
and lia
bilities t
hat the
Group m
ay ha
ve t
he right to offs
et in t
h
e even
t of d
efault, ins
o
lvency
or
bankr
uptcy
of the c
o
unterpa
rty a
lthough
these do not
meet the cr
iteria of
offs
et
ting unde
r K-I
FRS 1
032.
ٻ
ٻ
ٻ
ٻ
ڑڏٻ
ٻ
Financial assets and
liabilities, sub
ject to offsetting
, and financial instruments su
bject to an enforc
eable master
netting arrangement or similar agreement as of December 31, 2020 are as follows.
Descr
iption
Gross
amount
s
of r
ecogn
ized
financi
al assets
and li
abiliti
es
Gross
amount
s
of r
ecogn
ized
financi
al assets
and li
abiliti
es
set off in the
consoli
dated
statem
ent of
financi
al
positi
on
Net a
mounts
of
financi
al assets
and li
abiliti
es
pre
sen
ted in the
consoli
dated
statem
ent o
f
financi
al
positi
on
Relate
d
amou
nts n
ot
set
of
f in the
consoli
dated
statem
ent o
f
financi
al
positi
on -
financi
al
instr
uments
Relate
d
amou
nts n
ot
set off in the
statem
ent o
f
financi
al
positi
on -
co
llater
al
recei
ved
(ple
dged)
Net
amount
s
(In millio
ns of K
ore
an Won
)
Fina
ncial
assets:
Trade no
tes and accoun
ts
recei
vabl
e
୸
3,592
,148
୸
183,
907
୸
3,408
,241
୸
-
୸
-
୸
3,408
,241
Other
rece
ivab
les
3,
388,160
362,325
3
,025,
835
-
-
3,025
,835
Fina
ncial
ass
ets me
asur
ed at
FVPL
160,
692
-
16
0,69
2
-
-
160,
692
Deriva
tive as
sets that ar
e
effe
ctiv
e hed
g
in
g
ins
trument
s
(
*
)
221,
969
-
22
1,96
9
68,885
-
153,08
4
୸
7,362
,969
୸
546,
232
୸
6,816
,737
୸
68,8
85
୸
-
୸
6,747
,852
Financ
ial
liabiliti
es:
Trade no
tes and accoun
ts
p
a
y
able
୸
9,167
,936
୸
374,
757
୸
8,793
,179
୸
-
୸
-
୸
8,793
,179
Other
pa
yables
5,451,761
171,
475
5,280,2
86
-
-
5,2
80,2
86
Financ
ial liabili
ties m
easured at
FVPL
31,0
44
-
31,0
44
-
-
31,
044
Deriva
tive li
abilit
ies tha
t are
effe
ctiv
e hedg
ing ins
tru
ments (*)
528,
791
-
52
8,79
1
68,885
-
459,90
6
୸
15,179
,53
2
୸
546,
232
୸
14,6
33,3
00
୸
68,8
85
୸
-
୸
14,5
64,4
15
(*)
These are de
rivative as
sets a
nd liabilitie
s tha
t the G
roup may ha
ve the
right to offse
t in t
he event of
default, insolve
nc
y or bankruptc
y
of the c
o
unterpa
rty a
lthough
these do not
meet the cr
iteria of
offs
et
ting unde
r K-I
FRS 1
032.
(5)
Interes
t income, di
vidend inco
me and interest ex
pens
es by categorie
s of fi
nancial inst
ruments
for the year en
ded
December 31, 2021 a
re as follows.
2021
Description
Interest
income
Dividend
income
Interest
expenses
(In millions of Korean Won
)
Non-financial ser
vices:
Financial assets measu
red
at amortized cost
୸
248,198
୸
-
୸
-
Financial assets
measured at FVPL
100,415
-
-
Financial assets measu
red
at FVOCI
-
28,419
-
Financial liabilities m
easured
at amortized cost
-
-
267,648
୸
348,613
୸
28,419
୸
267,648
Financial services:
Financial assets measu
red
at amortized cost
୸
4,138,039
୸
-
୸
-
Financial assets measu
red
at FVPL
4,040
1,721
-
Financial assets measu
red
at FVOCI
203
-
-
Financial liabilities m
easured
at amortized cost
-
-
1,730,903
୸
4,142,282
୸
1,721
୸
1,730,903
ٻ
ٻ
ٻ
ٻ
ڑڐٻ
ٻ
Interest income,
dividend income and i
nterest expens
es
by
categories of fi
nancial instruments
for the year ended
December 31, 2020 a
re as follows.
2020
Description
Interest
income
Dividend
income
Interest
expenses
(In millions of Korean Won
)
Non-financial ser
vices:
Financial assets measu
red
at amortized cost
୸
289,171
୸
-
୸
-
Financial assets
measured at FVPL
112,176
-
-
Financial assets measu
red
at FVOCI
-
31,650
-
Financial liabilities m
easured
at amortized cost
-
-
295,069
୸
401,347
୸
31,650
୸
295,069
Financial services:
Financial assets measu
red
at amortized cost
୸
3,930,986
୸
-
୸
-
Financial assets measu
red
at FVPL
5,621
2,227
-
Financial assets measu
red
at FVOCI
882
-
-
Financial liabilities m
easured
at amortized cost
-
-
1,847,378
୸
3,937,489
୸
2,227
୸
1,847,378
(6)
The co
mmission inco
me (financial services reven
ue) arisin
g from fin
ancial assets or liabil
ities other than
financial
assets or liabilities measu
red at FVPL for th
e years ended December 31, 2021 and 2020 are
୸
923,656 million and
୸
784,509 million, res
pectively. In
addition, the fee expe
ns
es (cost of sales
from financial services
)
related
to
financial assets
or liabilities
other than
financial assets o
r
liabilities mea
sured at FVPL
for the y
ears ended Decem
ber
31, 2021 a
nd 2020 are
୸
3
74,229 million and
୸
319,
684 million, respectively.
(7)
The Group recognizes t
ransfers
between le
vels of
the fair
value hierarchy at
the date of
the event
or change i
n
circumstances that caused the
transfer.
There are no signific
ant transfers be
tween Level 1
and Level 2 for the year
ended December 31, 2
021.
(8)
Descript
ions of the val
u
ation t
echniques an
d the input
s used in t
he fair val
ue measurements categorized
within
Level 2 and Level 3 of t
he fair value hierarchy are as follows.
-
Currency
forwar
ds, optio
ns and swap
Fair value o
f currency f
orwards, options and s
wap is measured based
on forward exchange
rate
quoted in t
he current
market at the end o
f the report
ing period, which
has the same remaining
period of derivatives
to
be
measured. If
the forward
exchange
rate, w
hich has
the s
ame remaining
period
of currency forwards
,
options a
nd swap, is not
quoted in the cu
rrent market, fair value is
measured
using esti
mates of si
milar
period
of
forward
exchange
rate
by
applying i
nterpolatio
n method with quoted
forward exc
hange rates.
As the input
s used to meas
ure fair value of currency forward
s, options and swap are suppor
ted by observable marke
t
data, such as forward exc
hange rates, the Group classifies
the estimates of fair va
lue
measur
ements
of
the
currency
forwards, opti
ons and s
wap as Level 2 o
f the fair value
hierarchy.
- Interest rate swap
The discoun
t rate and forward interest rate used to measure the fair v
alue of interest rate swap are determ
ined based
on an applicabl
e yield
curve de
rived from int
erest q
uoted in t
he current market at t
he end of the reportin
g perio
d.
The fair value
of interest rate
swap was measured as
a disc
ount on
the estimated
future cash flows
of interes
t rat
e
swap based on f
o
rward int
erest rates
derived from t
he above
method at an appropriat
e discount rat
e.
ٻ
ٻ
ٻ
ٻ
ڑڑٻ
ٻ
As the inputs
used to measure
fair value of interest
rate swap
are supported b
y
observabl
e market
data,
such
as
yield curves, the Grou
p classifies
the estimates of fair value
measurements
of the interest
rate swap as Level 2
of the
fair value hierarchy.
- Debt ins
truments incl
uding c
orporate bonds
Fair value of de
bt instruments i
ncluding cor
porate bon
ds is meas
ured applying discount
ed cash flow met
hod.
The rate used to di
scount
cash flows
is determi
ned ba
sed
on swap rate and credit s
preads of debt
instrume
nts,
which have the
simil
ar credit
rating and peri
od quot
ed in the curre
nt market with tho
se of debt ins
trument
s
including cor
porate bonds th
at should
be measured. The Grou
p classifies fair val
ue
measurements of
debt
instruments
including
corporat
e bonds as Level
2 of the fair-val
ue hierarchy s
ince the rat
e,
which
has
signi
ficant
effects on fair
value of de
bt instruments i
ncluding cor
porate bonds, is based
on observable market dat
a.
- Un
listed equity secu
rities
Fair value of unlisted equity s
ecuritie
s is measured us
ing dis
counted cash fl
ow projection a
nd market approach, and
as
for discounte
d cash
flow
projections
,
certain
assumptions not
based o
n observable market
prices or rate, s
uch as
sales
growth rate, pre
-tax oper
ating income ratio and
di
scount rate bas
ed on business plan and ci
rcumstance of
industry
are used to est
imate the f
uture cash fl
ow. The dis
count rate
used to discount the fut
ure cash
flows
,
is
calculated by apply
ing the Capital Asset Pricing Mode
l, using the data of similar
listed companies.
The
Group
determines that t
he effect of e
stimation and assumptions
referred
above
affecting
fair
value
of
unliste
d
equity
securities is sign
ificant and classifies fair
value measur
em
ents
o
f
un
listed
securities as Lev
el 3 of the fair v
alue
hierarchy.
- Put option
s (Derivatives)
The fair value of put option
s (derivatives) is measured b
ased on the stock price volatility
up to the fair value, exercise
price, and maturi
ty of the und
erlying asset, usi
ng the binom
ial opti
on pricing
model. The di
scount rat
e used in th
e
binomial o
ption pri
cing mo
del i
s applied
by converting
the rat
e of return
on corporate bo
nds w
ith equivale
nt credit
rating c
orresponding
to the remai
ning mat
urity i
nto a co
ntinuous c
ompounding dis
count
rate, and the st
ock price
volatility up to maturity
us
es historical volatility of
proxy companies in similar in
dus
tries in respons
e to the
remaining m
aturity. The fair value of the unde
rlying asset is assumed to
be maintained
until the end of th
e current
period afte
r estimati
ng the un
derlying asset val
ue on the c
ontracted
date by invert
ing th
e underlying ass
et value
inheren
t in the terms of
the transaction on the premise th
at
the acquisition transactio
n of related shares in th
e current
period is
an orderl
y trans
action and t
raded at
fair value.
The group class
ifies the fai
r val
ue measurement
of put
options (derivatives) as Lev
el 3 in the fair v
alue hierar
chy base
d on the assumpti
on that the effect
of the above
assumptions
and estimates
on the fai
r value of
put options
clas
sified.
(9)
The quantitative inf
ormation about significant unobservab
le inputs used in the fair value measuremen
ts
categorized
within Level 3
of the fair
value hierarchy and
the description o
f relatio
nships of
significant
unobservable inp
uts to the fair
value are as fol
lows:
Description
Fair value at
December 31, 2021
Valuation
techniques
Unobservable
inputs
Range
Descri
ption of
relation
ship
Financial
assets
Financial
liabilities
(In millio
ns of Korean Won)
Unlisted equity
securities,
put optio
ns
and others
୸
1,076,097
୸
53,139
Disc
ounted
cash flow
and others
Sales growth rate
0.0% ~ 5.8%
If the sales
growth rate
and the pre-
tax
operating
profit m
argin
ratio increases
or the disco
unt
rate declines,
the fair valu
e
increases.
Pre-tax operating
profit margin
ratio
3.4% ~ 5.0%
Di
scount rate
2.0% ~ 9.7%
Stock
price
volatility
30% ~ 40%
The Group does not
expect ch
anges in si
gnificant un
observabl
e inputs t
hat are used for refl
ecting alternative ass
u
mptions
would have s
ignificant
impact on t
he fair value
.
ٻ
ٻ
ٻ
ٻ
ڑڒٻ
ٻ
21. CA
PITAL
STOCK:
The Company’s num
ber of shares authorized i
s 600,
000,000 shares. Common s
tock and
preferred stock as of
December 31, 2021 a
nd December 31, 2020 are as follows
.
(1) Common
stock
Description
December 31, 2021
December 31, 2020
(In millions of Korean W
on, except par
value)
Issued
213,668,
187 sha
res
213,668,187 s
hares
Par value
୸
5,000
୸
5,000
Capita
l stock
1,157,982
1,157,982
The Company comple
ted stock ret
irement of 10
,000,000 common s
hares, 1,320,
000 common shares and 6,608
,292
common shares as of March
5, 2001, May 4, 2004 a
nd July 27,
2018 respecti
vely. Due to thes
e stock retirement
s, the
total face value of outstanding
stock
differs from the capital
stock amount.
(2) Preferred
stock
Descript
ion
Par value
Iss
u
ed
Korean Won
Dividend rate
(I
n millions of
Korean Won)
1
st
preferred s
tock
୸
5,000
24,356,685
shares
୸
125,550
Dividend rate
of common s
tock + 1%
2
nd
preferred stock
Ý
36,485,451 shares
193,069
The lowes
t stimulated dividen
d rate: 2%
3
rd
preferred stock
Ý
2,428,735 shares
12,392
The lowest stimul
ated dividen
d rate: 1%
63,270,871
shares
୸
331,011
As of March 5, 200
1, the Company reti
red 1,000
,000 se
cond
preferred s
hares and as
of Jul
y 27, 2018, t
he Compan
y
retired 753,2
97 first
preferred
shares, 1,
128,414
second pre
ferred shares and 49,56
4
third
preferred shares. D
ue to th
e
stock retirement
, the tota
l face val
ue of outst
anding st
ock dif
fers from t
he capital s
tock amount.
ٻ
ٻ
22. CAPITAL
SURPLUS:
Capital surplus as
of December 31,
2021 and December
31, 2020 are as follows.
Description
December 31, 2021
December 31, 2020
(In m
illions of Korean Won)
Paid-in capital in ex
cess of par value
୸
3,321,334
୸
3,321,334
Others
748,9
26
868,759
୸
4,070,26
0
୸
4,190,093
23.
OTHER CAPITA
L ITEMS:
Other capital
items cons
ist of treas
ury stocks purchased f
or the st
abilizati
on of stock
price. Number
of treasury stocks
as of December 31,
2021 and
December 31, 20
20 are as follows.
Description
December 31,
2021
December 31,
2020
(Number
of
shares)
Common stock
14,048,242
13,091,418
1
st
preferre
d stock
2,333
,133
2,186,99
3
2
nd
preferred st
ock
1,572
,482
1,353,570
3
rd
preferred st
ock
63,146
48,574
ٻ
ٻ
ٻ
ٻ
ڑړٻ
ٻ
24.
ACCUMULATED OTHER COMPREH
ENSIVE LOSS:
(1)
Accumulated othe
r comprehensive los
s as of De
cember 31, 2021 i
s as foll
ows.
Description
December 31, 2021
(In m
illions of Korean Won)
Gain on val
uation of fina
ncial assets measured at F
VOCI
୸
451,693
Loss on valuati
on of fi
nancial
asset
s measured at FVO
CI
(370,812)
Gain on val
uation of cas
h flow hedge de
rivatives
56,048
Loss on valuati
on of cash
flow hedge de
rivatives
(42,068)
Gain on share
of the other c
omprehensive income
of
equity-accounted invest
ees
228,299
Loss on share of
the other comprehensive i
ncome of
equity-accounted invest
ees
(587,620
)
Loss on forei
gn operations tra
nslation, net
(1,508,141)
୸
(1,772,601)
(2)
Accumulated ot
her com
prehensi
ve loss as
of December 31,
2020 is as fol
lows.
Description
December 31, 2020
(In millio
ns of Korean Won)
Gain on val
uation of fina
ncial assets measured at F
VOCI
୸
453,715
Loss on valuati
on of fi
nancial
asset
s measured at FVO
CI
(351,813)
Gain on val
uation of cas
h flow hedge de
rivatives
102,057
Loss on valuati
on of cash
flow hedge de
rivatives
(40,175)
Gain on share
of the other c
omprehensive income
of
equity-accounted inves
tees
22,501
Loss on share of
the other comprehensive i
ncome of
equity-accounted inves
tees
(925,992)
Loss on forei
gn operations tra
nslation, net
(2,669,954)
୸
(3,409,661)
ٻ
ٻ
ٻ
ٻ
ڑڔٻ
ٻ
25. RETAINED
E
ARNINGS:
(1)
Retained earni
ngs as of Dece
mber 31, 2021 and December
31, 2020 a
re as follows
.
Description
December 31, 20
21
December
31,2020
(I
n millions of Korean Won)
Legal reserve (*)
୸
744,836
୸
744,836
Discretionary res
erve
47,701,296
47,935,596
Unappropriated
24,721,723
20,231,368
୸
73,167,855
୸
68,911,800
(*)
The Commer
cial Code
of the
Rep
ublic of Korea r
equire
s the C
ompany to ap
propria
te as
a legal r
eser
ve, a mi
nimum
of 10% of
annual ca
sh div
idends
declar
ed, u
ntil such re
serve e
quals
50% of it
s capital stock is
sued.
The reserve is not
available for t
h
e
paymen
t of cash dividen
ds, but may b
e transferred to
capital stock or u
sed to reduce accu
mulated
deficit, i
f any.
Appraisal
gains, amounti
ng to
୸
1,852,
871 million, derived f
rom asset
revalua
tion purs
uant to t
he Asset R
evaluation Law
of Korea are included i
n retained earni
ngs. It may be onl
y trans
ferred to capital s
tock or used t
o reduce accumulated
deficit, if any.
(2)
The computation o
f the interim dividen
ds for t
he year ended D
ecember 31,
2021 is
as follows
, and there are n
o
interim divi
dends for
the year
ended December 3
1, 2020.
Description
Common
stock
1
st
Preferred
stock
2
nd
Preferred
stock
3
rd
Preferred
stock
(In millions o
f Korean Won, except per sha
re amounts)
Par value per s
hare
୸
5,000
୸
5,000
୸
5,000
୸
5,000
Shares, net of treas
ury stocks
200,576,769
22,169,692
35,131,8
81
2,380,161
Dividends per s
hare
୸
1,000
୸
1,000
୸
1,000
୸
1,000
Dividend
rate
20%
20%
20%
20%
Dividends
declared
200,577
22,170
35,132
2,380
(3)
The computation of the
propos
ed dividends f
or the year end
ed December 31,
2021 is as
follows.
Description
Common
stock
1
st
Preferred
stock
2
nd
Preferred
stock
3
rd
Preferred
stock
(In millions of Kor
ean Won, except per share amounts)
Par value per s
hare
୸
5,000
୸
5,000
୸
5,000
୸
5,000
Shares, net of treas
ury stocks
199,619,945
22,023,552
34,912,9
69
2,365,589
Dividends per s
hare
୸
4,000
୸
4,050
୸
4,100
୸
4,050
Dividend
rate
80%
81%
82%
81%
Dividends
declared
798,480
89,195
143,143
9,581
The computation of the
divide
nds for t
he year ende
d December 31
, 2020 is
as follows
.
Description
Common
stock
1
st
Preferred
stock
2
nd
Preferred
stock
3
rd
Preferred
stock
(In millions o
f Korean Won, except per sha
re amounts)
Par value per s
hare
୸
5,000
୸
5,000
୸
5,000
୸
5,000
Shares, net of treas
ury stocks
200,576,
769
22,169,6
92
35,131,881
2,380,161
Dividends per s
hare
୸
3,000
୸
3,050
୸
3,100
୸
3,050
Dividend
rate
60%
61%
62%
61%
Dividends
declared
601,730
67,618
108,909
7,259
ٻ
ٻ
ٻ
ٻ
ڒڋٻ
ٻ
26. HY
BRID
BO
ND:
(1)
Hyundai Card C
o., Ltd., a s
ubs
idiary of the Com
pany, issued hybrid b
ond and t
h
e Group c
lassified it as equi
ty
(non-controlling interes
ts). As of Decembe
r
31, 2021,
hybrid bond is as follows.
Description
Issue date
Maturity date
Annual
interest rate
December 31, 2021
(%)
(In millio
ns of Korean Won)
The 731st
Hybrid Tier
1 (Private)
July 5, 2018
July 5, 2048
4.70
୸
300,000
Issue cost
(760)
୸
299,240
Hyund
ai Rotem Company
, a subsidi
ary of the Comp
any, paid off all h
ybrid bond
s during the y
ear ended Decemb
er 31, 2021
.
(2)
As of December 31, 2021
, the conditions of hybrid
bond that
Hyundai Card Co.
, Ltd., a sub
sidiary of the
Company issued are as f
ollows.
Descr
iption
Maturity
Thirty years (Mat
urity extension is
possibl
e according to t
he issuer's
decision
upon maturity)
Interest rate
Issue date ~ J
uly 5, 202
3 : An annual
fixed i
nterest rate
4.7%
Increase of 2% after five years which
is limited to one time only in accordance with
Step-up clause
Interest payment
condition
Three mo
nths, optional pos
tpo
nement of payme
nt
Others
Repayment b
efore maturity by issuer is available after f
ive years from issue date
27. SALES:
(1) Sales for the years
ended December
31, 20
21 and 2020
are as follows.
Description
2021
2020
(In millio
ns of Korean Won)
Sales
of goods
୸
99,722,885
୸
87,288,494
Rendering o
f services
2,624,047
2,329,450
Royalties
276,564
188,293
Financial s
ervices revenue
11,536,970
10,920,6
22
Revenue relate
d to cons
tructio
n contracts

2,814,036
2,691,09
0
Others
636,124
579,6
52
୸
117,610,
626
୸
103,997,
601
(2) As of December 3
1, 2021,
the aggregate transaction
pric
e allocated to the unsatisfied
(or partially u
nsatisfied)
performance obli
gation that
is expected to
be recognized as revenue in futu
re periods is as foll
ows.
Description
Within a year
After a year
(In millio
ns of Korean Won)
Deferred revenue
and others
୸
1,498,039
୸
2,282,685
ٻ
ٻ
ٻ
ٻ
ڒڌٻ
ٻ
28.
SELLING AND AD
MINIS
TRATIVE EXPEN
SES:
Selling and admi
nistrative expens
es for the years ended Dec
ember 31, 2
021 and
2020 are as
follows.
Description
2021
2020
(In
millions of Korean Won)
Selli
ng expenses:
Export expens
es
୸
46,057
୸
59,617
Overseas market expe
nses
412,476
352,869
Advertisement
s and sal
es pro
motion
2,609,784
2,241,458
Sales
commiss
ions
983,949
971,0
86
Expenses for war
ranties
2,947,290
4,813,729
Transportati
on expe
nses
116,035
109,2
51
7,115,591
8,548,010
Administrat
ive expenses:
G
G
Payroll
2,882,164
2,688,556
Post-employment
benefits
177,845
183,312
Welfare expenses
496,461
464,627
Service charges
1,529,151
1,415,025
Research
1,534,993
1,337,872
Others
1,515,341
1,449,59
7
8,135,955
7,538,989
୸
15,251,546
୸
16,086,999
29.
GAIN(LOSS) ON INVES
TMENTS IN
JO
INT VE
NTURE
S A
ND ASS
OCIATE
S:
Gain(loss
) on investments
in joi
nt ventures and as
sociates for the years en
ded December 3
1, 2021 and 2
020 is as
follows.
Description
2021
2020
(In millions of Korean Won)
Gain on share
of earnings of
equity-accounted in
vestees, net
୸
1,278,591
୸
103,676
Gain on dispos
als of in
vestments
in associates
38,106
58,486
Impairment l
oss on inves
tments
in associat
es
(13,332)
-
୸
1,303,365
୸
162,162
30.
FINANCE INCO
ME AND EXPEN
SES:
(1)
Finance income for the years
ended
December 31, 2021 a
nd 2020 are as
follows.
Description
2021
2020
(In millio
ns of Korean Won)
Interest inco
me
୸
348,6
13
୸
4
01,347
Gain on foreign excha
nge transactions
62,0
0
3
55,468
Gain on foreign curre
ncy translation
1
62,811
2
39,554
Dividend income
28,419
31,650
Gain on derivatives
89,522
80,654
Others
2
21,434
5,243
୸
912,8
02
୸
8
13,916
ٻ
ٻ
ٻ
ٻ
ڒڍٻ
ٻ
(2)
Finance expenses for
the years
ended December 31, 2
021 and 2020 are as f
ollows.
Description
2021
2020
(In millio
ns of Korean Won)
Interest expenses
୸
304,5
42
୸
3
62,377
Loss on forei
gn exchange
transactions
54,622
180,
732
Loss on forei
gn currenc
y transl
ation
182,233
304,
377
Loss on derivatives an
d others
7,013
108,
505
୸
5
48,410
୸
9
55,991
31.
OTHER INCOM
E AND EXPENS
ES:
(1)
Other income for the
years ended December 31, 20
21 and 2020 are as foll
ows.
Description
2021
2020
(In millions of Korean Won
)
Gain on foreign
exchange transacti
ons
୸
624,884
୸
446,641
Gain on forei
gn curre
ncy trans
lation
220,468
192,825
Gain on dis
posals of P
P&E
23,978
37,485
Commiss
ion income
22,716
43,601
Rental income
94,528
93,566
Others
460,687
494,524
୸
1,447,261
୸
1,308,642
(2)
Other expenses fo
r the years ended D
ecember 31, 2
021 and
2020 are as
follows.
Description
2021
2020
(In millions of Korean Won
)
Loss on forei
gn exchange trans
actions
୸
527,878
୸
590,009
Loss on forei
gn currency translation
231,859
264,399
Loss on dis
posals
of PP&E
57,899
106,761
Donations
66,249
73,553
Others
950,520
595,422
୸
1,834,405
୸
1,630,144
32.
EXPENSE
S BY NATU
RE:
Expenses by
nature for the
years ended Decem
ber 31, 2021 and 2020 a
re as follows.
Description
2021
2020
(In millions of Korean Won)
Changes in invent
ories
୸
434,257
୸
(22,609)
Raw materi
als and
merchandise used
67,57
9,441
59,084,8
67
Employee benefits
9,613,599
9,098,752
Depreciation
2,937,91
4
2,749,513
Amortizati
on
1,617,82
3
1,
435,860
Others
30,583,048
30,886,691
Total (*)
୸
112,766,
082
୸
103,233,
074
(*)
Sum of c
ost of
sales
, selling
and administra
tive expense
s an
d other
expe
nses
in the c
onsoli
dated state
ments of inc
ome.
ٻ
ٻ
ٻ
ٻ
ڒڎٻ
ٻ
33.
EARNINGS PER COMMON STOCK AND PREFERR
ED STOCK:
Basi
c earnings per common s
tock and preferred stock are c
omputed by dividing p
rofit available to common s
tock and
preferred st
ock by the weighted-avera
ge number of common
stock and preferred st
ock outs
tanding duri
ng the year. The
Group does not
compute diluted earnings per c
ommon stock fo
r the
years ended December 3
1, 2021 and
2020, since there
are no dilutive items du
ring the years.
Basic earnings
per common st
ock and prefer
red stock f
or the years ended Decembe
r 31, 2021 and 2020 are co
mputed as
follows.
For the year ende
d December 31, 2
021
For the year ended December
31, 2020
Description
Profit
attributable to
share
Weighted-
average number
of shares
outstandi
ng (*1)
Basic
earnings
per share
Profit
att
ributable to
share
Weighted-
average number
of shares
outstandi
ng (*1)
Basic
earnings
per share
(In mil
lions o
f Korean Won, e
xcept per share amounts
)
Common stock
୸
3,806,754
200,578,
742
୸
18,979
୸
1,094,134
200,628,
493
୸
5,454
1
st
Preferred st
ock (*2)
421,090
22,160,384
19,002
122,043
22,181,699
5,502
2
nd
Preferred stoc
k
669,282
35,117,788
19,058
195,156
35,149,829
5,552
3
rd
Preferred st
ock
45,230
2,379,240
19,010
13,103
2,381,349
5,502
(*1)
W
eighted
-average numb
er of shares ou
tstanding
includes th
e effects of tr
easury sto
ck transactio
ns.
(*2) 1
st
preferre
d stock m
eets the de
finition
of ‘ordinary shar
es’ as
define
d in K-I
FRS 1033 ‘Ea
rnin
gs per Sha
re’.
34.
INCOME TAX EXP
ENSE:
(1)
The components o
f income tax expense for t
he years
ended D
ecember 31, 2021 a
nd 2020 are as fol
lows.
Description
2021
2020
(In
millions of Korean Won
)
Current tax ex
pense
୸
1,816,699
୸
1,201,923
Adjustments
recognized i
n the current
year in relation to
the prior years
(274,525
)
(286,756)
Changes in defer
red taxes rela
ting to
Temporary dif
ferences
1,718,022
(782,752)
Tax losses
and tax credits
(683,646)
49,890
Items that are charged o
r credited direc
tly to e
q
uity
(104,461
)
(56,735)
Effect of foreig
n exchange differences
and others
(205,604)
43,133
Income tax expe
nse
୸
2,266,485
୸
168,703
(2)
The reconciliation from profit before income tax to income tax expens
e for the years ended December 31, 202
1
and 2020 are as
follows.
Description
2021
2020
(In
millions of Korean Won)
Profit befor
e income t
ax
୸
7,959,562
୸
2,093,256
Income tax expens
e calcula
ted at the applicable
tax rates
of 21.4% in 2021 a
nd 26.6% i
n 2020
1,699,706
556,247
Adjustments:
Non-taxable inc
ome
(100,314)
(84,808)
Non-deductibl
e expens
es
261,172
55,101
Tax credits
(429,012)
(198,374)
Others
834,933
(159,
463)
566,779
(387,544
)
Income tax expe
nse
୸
2,266,485
୸
168,703
Effective tax rate
28.5%
8.1%

ٻ
ٻ
ٻ
ٻ
ڒڏٻ
ٻ
(3)
The changes in d
eferred tax assets (liabilities)
for the year ended December 31, 2021 are
as follows.
Description
Beginni
ng
of the year
Changes
End
of the year
(In millio
ns of Korean Won)
Provis
ions
୸
2,713,730
୸
110,479
୸
2,824,209
Financial
assets
measured at FVPL
1,795
(564)
1,231
Financial
asset
s measured at FV
OCI
(137,
271)
16,087
(121,184)
I
nv
e
st
m
en
t
of
su
b
si
d
ia
r
ie
s
, associates
and joint
ventures
ٻ
ٻ
(1,516,729)
(61,404)
(1,57
8,133)
Derivatives
ٻ
ٻ
(45,697)
44,181
(1,516)
PP&E
ٻ
ٻ
(5,058,726)
(803,017
)
(5,861,743)
Accrued income
ٻ
ٻ
61,186
(77,026)
(15,840)
Gain (los
s) on forei
gn curre
ncy trans
lation, net
431
(567)
(136)
Others
903,246
(946,191
)
(42,945)
(3,078,035)
(1,718,022)
(4,79
6,057)
Carryforward
of tax l
osses and t
ax credits
ٻ
ٻ
2,647,916
683,646
3,331,562
୸
(430,119
)
୸
(1,034,376)
୸
(1,464,495)
The changes in deferred tax assets (liabilitie
s)
for the year ended December 31, 20
20 are as follows.
Description
Beginni
ng
of the year
Changes
End
of the year
(In millio
ns of Korean Won)
Provis
ions
୸
2,004,413
୸
709,317
୸
2,713,730
Financial
assets
measured at FVPL
1,907
(112)
1,795
Financial
asset
s measured at FV
OCI
(124,
498)
(12,773)
(137,
271)
I
nv
e
st
me
n
t
o
f
s
ub
s
id
ia
r
ie
s
, associates and joint
ventures
(1,565,4
85)
48,756
(1,516,729)
Derivatives
ٻ
ٻ
(35,584)
(10,113)
(45,697)
PP&E
ٻ
ٻ
(5,165,608)
106,882
(5,058,726)
Accrued income
ٻ
137,079
(75,893)
61,186
Gain (loss
) on foreign c
urrency translat
ion, net
ٻ
ٻ
(19)
450
431
Others
ٻ
ٻ
887,008
16,238
903,246
(3,860,787)
782,752
(3,078,035)
Carryforward
of tax l
osses and t
ax credits
ٻ
ٻ
2,697,806
(49,890)
2,647,916
୸
(1,162,981)
୸
732,862
୸
(430,119
)
(4)
Income taxes relating to items
that
are charged
or credited directly to equity for
the years ended Decem
ber 31,
2021 and
2020 are as f
o
llows
.
Description
2021
2020
(In
millions of Korean Won
)
Loss (gain) o
n disposal
of trea
sury stocks
୸
(9,451)
୸
828
Gain on fina
ncial ass
ets measured at FVOCI, net
(32,147)
(9,472)
Loss (gain) o
n valuatio
n of ca
sh flow hedge
derivatives, net
5,848
(36,505)
Remeasurement
s of define
d benefit
plans
(64,906)
(16,403)
Changes in retained earnings
of equity
-acco
unted
investees
,
net
(3,805)
4,817
୸
(104,461
)
୸
(56,735)
(5)
The amount of temporar
y differences ass
ociated wit
h invest
ments in s
ubsidiaries
, joint
ventures
and ass
ociates, for
which deferred tax liabilities are not recognized, are
୸
5,644,375 million and
୸
4,046,18
7 m
illion as of Decem
b
er
31, 2021 and
2020, respectively.
ٻ
ٻ
ٻ
ٻ
ڒڐٻ
ٻ
35. RETIR
EMENT
B
ENEFIT
PLAN:
(1)
Expenses recognized i
n relati
on to defined co
ntribution plans
for the years ended Decembe
r 31, 2021 and 202
0 are as
follows.
Description
2021
2020
(In millions of Korean Won)
Paid-in cash
୸
11,650
୸
10,651
Recognized liab
ility
3
,320
2,932
୸
14,970
୸
13,583
(2) The
significant
actuarial
assumptions
used by the Gr
oup as of December 31, 202
1 and De
cember 31, 2020 a
re as
follows.
Description
December 31, 2021
December 31, 2020
Discount
rate (*)
3.84%
3.44%
Rate of expected future salary
increase
4.51%
4.37%
(*) The Group a
pplied the market
yields
of high-
quality corporate b
onds (AA+) and
others as t
he dis
count rat
e at
December 31, 2021, to dis
count the defi
ned benefit obligation to the p
resent va
lue, and the s
ame discount rate was
applied as the expected return
rate when
calculating interest income on plan assets
.
Employee turnov
er and mortality assumptions u
sed for actuarial valuation are based on the economic conditions and
statistical data of each
country where entities within the Group are lo
cated.
(3)
The amounts recog
n
ized in th
e consolidated s
tatements of financial
position rel
ated t
o defined be
nefit plans
as
of
December 31, 2021 a
nd December 31, 2020 are as
follows.
Description
December 31, 2021
December 31, 2020
(In
millions of Korean Won
)
Present value of
defined benefit obligati
ons
୸
6,580,593
୸
6,490,583
Fair value of
plan asse
ts
(6,7
21,149)
(6,253,299)
୸
(140,556
)
୸
237,284
Net defined
benefit liabilities
79,1
65
247,566
Net defined be
nefit assets
(219,721)
(10,282)
ٻ
ٻ
ٻ
ٻ
ڒڑٻ
ٻ
(4)
Chang
es in net defined b
enefit assets and liabilities
for the year ended December 31,
2021 are as follows.
Description
Present value of
defined
benefit o
bligations
Fair value of
plan assets
Net defined be
nefit
liabilities
(I
n millions of Korean Won
)
Beginning o
f the year
୸
6,490,583
୸
(6,253,299)
୸
237,284
Current servi
ce cost
598,231
-
598,231
Interest
expenses
(income)
140,222
(139,588)
634
Past serv
ice cost
2
21
-
221
7,229,257
(6,392,887)
836,370
Remeasuremen
ts:
Return on pla
n assets
-
(1,247)
(1,247)
Actuarial gains
and losses
arising
from changes i
n demographi
c
assumpti
ons
2,573
-
2,573
Actuarial gains
and losses
arising
from changes i
n financial
assumpti
ons
(259,343
)
-
(259,343)
Actuarial gains
and losses
arising
from experience a
djustments and
others
17,719
-
17,719
(239,051
)
(1,247)
(240,298)
Contribut
ions
-
(689,687)
(689,687)
Benefits
paid
(447,857)
367,927
(79,930)
Transfers
in
(out)
2,721
(1,605)
1,116
Effect of foreig
n exchange
differences and ot
hers
35,52
3
(3,650)
31
,873
End of the yea
r
୸
6,580,593
୸
(6,721,149)
୸
(140,556
)
Changes in
net defined
benefit assets and liabilities
for the year
ended December 31, 2020 are as follows.
Description
Present value of
defined
benefit o
bligations
Fair value of
plan assets
Net defined be
nefit
liabilities
(I
n millions of Kore
an Won)
Beginning o
f the year
୸
6,321,408
୸
(5,913,514)
୸
407,894
Current servi
ce cost
613,775
-
613,775
Interest
expenses
(income)
135,718
(131,067)
4,651
Past serv
ice cost
23
-
23
7,070,924
(6,044,581)
1,026,343
Remeasuremen
ts:
Return on pla
n assets
-
(45,079)
(45,079)
Actuarial gains
and losses
arising
from changes i
n demographi
c
assumpti
ons
2,337
-
2,337
Actuarial gains
and losses
arising
from changes i
n financial
assumpti
ons
(4,282)
-
(4,282)
Actuarial gains
and losses
arising
from experience a
djustments and
others
(8,943)
-
(8,943)
(10,888)
(45,079)
(55,967)
Contribut
ions
-
(606,302)
(606,302)
Benefits
paid
(531,416)
400,577
(130,839)
Transfers
in
(out)
2,620
(1,306)
1,314
Effect of foreig
n exchange
differences and ot
hers
(40,657)
43,392
2,735
End of the yea
r
୸
6,490,583
୸
(6,253,299)
୸
237,284
ٻ
ٻ
ٻ
ٻ
ڒڒٻ
ٻ
(5)
The sensitivity analysis based
on reasonably possible ch
anges of th
e
significant
assumptio
ns as of December 31,
2021 and December 3
1, 2020,
while all the other
assumptions are retained, are as follows
.
Effect o
n the net defined benefit liabilities
December 31, 2021
December 31, 2020
Description
Increase
by
1%
Decrease by 1%
Increase by 1%
Decrease by 1%
(I
n millions of Korean Won
)
(In millions of Korean Won)
Discount ra
te
୸
(486,472
)
୸
542,497
୸
(489,893
)
୸
578,549
Rate of expected future salary
increase
492,651
(457,048
)
529,477
(461,638
)
(6)
The fair val
ue of the plan as
sets as of D
ecember 31
, 2021 an
d December 31, 2020 is as
follows.
Description
December 31, 2021
December 31, 2020
(In millions of Korean Won
)
Insur
ance in
strument
s
୸
6,717,877
୸
6,249,450
Others
3,272
3,849
୸
6,721,149
୸
6,253,299
(7)
The Group expects to pay co
ntribution o
f approximately
୸
562,44
8 m
illion to the plan in 2022 and the weighted
average duration
of the defi
ned benefit
obligation as of Dec
ember 31, 2021 is 8.
0 years
.
ٻ
ٻ
ٻ
ٻ
ڒړٻ
ٻ
36. CASH GENERATED FRO
M OPERATIONS:
(1)
Cash generated fr
om operations for the
years ended December 31, 20
21 and 2
020 are as f
ollows.
Description
2021
2020
(In millio
ns of Korean Won)
Profit for the year
୸
5,693,077
୸
1,924,553
Adjustments:


Retirement
benefit costs
602,406
621,381
Depreciation
2,937,914
2,749,513
Amortization
of intangible assets
1,61
7,823
1,435,860
Provisi
on for warrant
ies
2,678,950
4,619,516
Income tax expe
nse
2,266,485
168,703
Loss on forei
gn currency trans
lation, net
30,813
136,397
Loss on dis
posals
of PP&E, ne
t
33,921
69,276
Interest i
ncome, net
(44,071)
(38,970)
Gain on share of ear
nings of e
quity-accounted investees, net
(1,278,591)
(103,676)
Cost of s
ales from financi
al se
rvices, net
6,229,723
6,604,787
Impairment l
oss on inves
tments
in associ
ates
13,33
2
-
Others
688,884
545,598
15,777,5
89
16,808,385
Changes in
operating
assets and liabilities:
Decrease (increase) in trade n
o
tes and accounts receivable
280,750
(130,504)
Increase in other receiva
bles
(161,098
)
(95,065)
Decrease (increase) i
n other fi
nancial assets
237,835
(729,250)
Decrease (increase) i
n invento
ries
177,234
(39,007)
Increase in othe
r asset
s
(381,923)
(510,142)
Increase in trade
notes and
accounts
payable
555,739
1,517,930
Increase in othe
r payables
13,70
2
121,283
Increase in other liabilities
1,0
57,959
669,528
Decrease in other f
inancial liabilities
(11,583)
(26,285)
Decrease in net defined bene
fit liabilities
(678,416
)
(593,606)
Payment of severa
nce benefits
(79,930)
(130,839)
Decrease in provis
ions
(3,261,759)
(2,605,5
37)
Changes in financial services
r
eceivables
(9,551,305)
(10,253,
842)
Investment in
operating leases
(7,649,654)
(4,269,6
49)
Others
(835,327
)
83,214
(20,287,
776)
(16,991,
771)
Cash generated fr
om operations
୸
1,182,890
୸
1,741,167
(2)
Major non-cash trans
actions n
ot stated on t
he consol
idated s
tatements
of cash flows fro
m investing and fi
nancing
activities for the years ended December 31, 2021 and 2020 are as follows.
Description
2021
2020
(
In millions of Kor
ean Won)
Reclassi
fication of the cu
rrent port
ion of lo
ng-term debt
and debentures
୸
21,149,425
୸
19,220,065
Reclassi
fication of cons
tructio
n-in-progress
to PP&E
ٻ
3,843,940
4,211,393
Reclassification o
f constru
ction-in-prog
ress to intangible assets
ٻ
123,1
07
194,505
Contribut
ions in ki
nd (rendering of
services
) in joint
venture
-
381,517
ٻ
ٻ
ٻ
ٻ
ڒڔٻ
ٻ
(3)
Changes in liab
ilities arising from fin
ancial activities fo
r the year ended
December 31, 2021 are as follows.
Chan
g
es from no
n-cash transa
ctions
Descri
p
tion
Beginn
ing
of the
y
ear
Cash fl
ows from
fina
ncin
g
activiti
es
Recla
ssifi
ed to
current
p
ortion
Effect of
exchan
ge rate
chan
g
es
Pres
ent v
alue
discou
nts
Others
(
*
)
End of
the
y
ear
(
In mil
lions
of Ko
rean W
on
)
Short-
term
borrow
ings
(inclu
ding
current
p
ortio
n
)
୸
29,884,675
୸
(19,812,
277)
୸
21,149,425
୸
1,649,562
୸
18,765
୸
776,588
୸
33,666,738
Long-t
erm
debts
12,726,724
3,853,657
(6,285,8
07)
338,631
10,831
23,695
10,667,731
Debent
ures
48,795,361
26,862,597
(14,863,618)
2,536,702
23,103
104,664
63,458,809
(*)
Other
s inclu
de tra
nsfers
from
or to other
accoun
ts and othe
rs.
Changes in liab
ilities arising from fin
ancial activities for
the year ended
Decemb
er 31, 2020 are as foll
ows.
Chan
g
es from no
n-cash transa
ctions
Descri
p
tion
Beginn
ing
of the
y
ear
Cash fl
ows from
fina
ncin
g
activiti
es
Recla
ssifi
ed to
current
p
ortion
Effect of
exchan
ge rate
chan
g
es
Pre
sent
valu
e
discou
nts
Others
(
*
)
End of
the
y
ear
(
In mil
lions
of Ko
rean W
on
)
Short-
term
borrow
ings
(inclu
ding
current
p
ortio
n
)
୸
28,349,251
୸
(17,547,
902)
୸
19,220,065
୸
(901,820
)
୸
41,183
୸
723,898
୸
29,884,675
Long-t
erm
debts
11,217,088
8,432,439
(6,406,4
92)
(477,249)
9,882
(48,944)
12,726,724
Debent
ures
41,805,814
21,894,431
(12,813,573)
(1
,822,914)
21,329
(289,726)
48,795,361
(*)
Other
s inclu
de tra
nsfers
from
or to other
accoun
ts and othe
rs.
37. RISK
MA
NAGEMENT:
(1) Capital risk manageme
nt
The Group man
ages its capital to maintain
an optimal capital structur
e for maximizing pr
ofit of its shareholder
and
reducing the cost of capital. Debt to equity ratio calculated as total liabilities d
ivided by total equity is used as an index
to manage
the Group’s capital. The overa
ll capital risk management policy
is consistent with that o
f the prior period. Debt
to equity ratios as of Decembe
r 31, 202
1 and December
31, 2020 a
re as follows.
Description
December 31, 2021
December 31, 2020
(In millions of Korean Won)
Total liabilities
୸
151,330,
626
୸
133,003,
242
Total equit
y
82,615,7
89
76,340,970
Debt-to-equit
y rati
o
183.2%
174.2%
(2) Fina
ncial ris
k manageme
nt
The Group is exposed t
o vari
ous financia
l risks s
u
ch as market
ris
k (foreign excha
nge ris
k, interest rat
e risk and price
risk), credit
risk and liquidit
y ris
k related to
its financi
al inst
ruments.
The purpos
e of risk management
of the Group i
s t
o
identify po
tential risks related to fin
ancial performance and redu
ce, eliminate and evade those risks to an
acceptable level
of risks to t
he Group.
Overall,
the Group’s
financial ri
sk man
agement pol
icy is cons
istent
with the prio
r period policy.
ٻ
ٻ
ٻ
ٻ
ړڋٻ
ٻ
1) Market
risk
The Group is
mainly e
xposed to fi
nancial
risks ari
sing fr
om
changes
in forei
gn exchange rates a
nd interest rates
.
Accordingly, t
he Gro
up us
es financial
derivati
ve cont
racts to
hedge and to manage its interest rate risk and foreign
currency risk.
a)
Foreign exc
hange risk management
The Group is
exposed t
o vario
us foreign excha
nge risks by making t
rans
actions in forei
gn currencies. The Grou
p is
mainly exposed t
o foreign exc
hange risk in USD, EUR
, JPY and ot
hers.
The Group manages foreig
n exchange risk b
y matching the in
flow and the outflow o
f fore
ign curre
ncies according to
each currency and maturity, a
n
d by adjusting the foreign currency settlement
date based on its exchange rate forecast.
The Group uses
foreign excha
nge derivatives, such as cur
rency forwar
d, currency swap, an
d currency option; as hedgi
ng
instruments
. However, spec
ulative foreig
n exchange trad
e on derivat
ive financi
al inst
ruments
is prohibi
ted.
Sensitivity analysis for a 5% change in exch
ange rate of the functional currency against each foreign currency on profit
before income tax
as of Dece
mber 31, 2021 i
s as foll
ows.
Foreign Exchange Rate Sensitivity
Foreign Currency
Increase by 5%
Decrease by 5%
(In millions of Korean Won)
USD
୸
(81,434)
୸
81,434
EUR
(31,240)
31,240
JPY
(5,039)
5,039
b)
Interest rate risk management
The Group has bor
rowings with fixed or vari
able interes
t rates. Als
o, the Group is expos
ed to i
nterest rat
e risk aris
ing
from financia
l instrume
nts with variable i
nterest rates. To ma
nage the interest rate ri
sk, the
Group maintains an appro
priate
balance between
borrowings
wit
h fixed and varia
ble interest
rates
for short-term borrowi
ngs and has
a policy to bor
row
funds with fi
xed interest
rates to avoid t
he future cas
h flow
fluctuation ri
sk for l
ong-term
debt if possible. The Grou
p
manages its
interest rat
e risk through regular as
sess
ments of
the chang
e in market cond
itions and the adjustmen
ts in nature
of its interest r
ates.
Sensitivity analysis for a 1
% change in interest rates on profit
before income tax as of December 31, 2021 is as follows.
Interest Rate Sensitivity
Accounts
Increase by 1%
Decrease by 1%
(In millions of Korean Won)
Cash and cas
h equivalents
୸
36,126
୸
(36,126)
Financial assets meas
ured at FVPL
(4,595)
4,964
Short-term an
d long-term
financial
instrument
s
14,696
(14,696)
Borrowings
and debent
ures
(81,572)
81,572
The Company’s s
ubsidiaries, Hyundai Ca
rd Co., Lt
d. and
Hyundai Capi
tal Servi
ces, Inc., that
are operatin
g financial
business, are ma
naging interest rate risk by
utilizing value at
risk (VaR). VaR is d
efined as a th
reshold
value which is a
statistical estimate of the maximum potential loss
based on
normal dis
tribution. As of
Dece
mber 31, 2021 and Decem
ber
31, 2020, t
he amounts of i
nterest rate ris
k measured at VaR
are
୸
182,864 m
illion and
୸
180,2
4
0 million, respectively.
c) Price risk
The Group is expos
ed to mar
ket price fluctuation
risk aris
ing fr
om equity inst
ruments.
As of December 31, 2021, t
he
amounts of fi
nancial ass
ets meas
ured at FVPL
and fina
ncial assets measured at FVOCI are
୸
107,2
90 million
and
୸
2,460,812 m
illion, respectively.
ٻ
ٻ
ٻ
ٻ
ړڌٻ
ٻ
2)
Cred
it risk
The Group is
exposed to c
redit ri
sk when a count
erparty def
aults
on its contract
ual obligat
ion resulting in a fi
nancial loss
for the Group. The Gr
oup operates a poli
cy to transact
with counterpa
rties
who only meet
a certain level of credi
t rating
which was evaluated
based on the counter
pa
rty’s
financial c
onditions, de
fault his
tory, an
d other fa
ctors.
The credit
risk
in the liquid fun
ds and derivative financia
l instrument
s is l
i
mited as
the Group transact
s only wit
h financial ins
tituti
ons
with high credit
-ratings as
signed by inter
national credit-rating agencies
. Except for t
he guarantee of indebted
ness
discuss
ed in Note 39,
the book
value of fina
ncial assets in the cons
olidated
financial s
tatements repres
ents the ma
ximum
amounts of expos
ure to credit
risk. In addit
ion, the Compa
ny’s s
ubsidia
ries, Hyundai C
ard Co., Ltd. and Hyundai
Capita
l
Services, Inc., that are operating financial busin
ess, assesses
their credit stability
according to their internal credit ratin
gs
and manage c
redit ris
k conce
ntrations
by de
btor. A
s of
D
ecember 31, 2021, c
redit ris
k concent
rations are
90% for
households an
d 10% for companie
s.
3)
Liq
uidity risk
The Group manages
liquidit
y ris
k based on maturit
y profil
e
of its fundi
ng. The Group a
nalys
es and reviews
actual cash
outflow and its b
udget to match the m
aturity of its financial liab
ilities to that of its fin
ancial assets.
The Group retai
ns an appropri
ate level of deposit
to cope wi
th
uncertainty caus
ed by the i
nherent nature of the indus
try
which is sensitive to economic
fluctuati
on and to i
nvest in R&D constantly.
In addition, the Group has ag
reements with financial institu
tions related to trade financing and overdraft to mitigate any
significant
unexpected market
deteriorati
on. Also, the Gr
oup continues to strengt
hen its credit rates to s
ecure a stable
financing capabi
lity.
The Group’s ma
turity analysis of its non-derivativ
e liabilities according to their remaining contract p
eriod before
expiration as of December
31
, 2021 is
as follows.
Remaining contract
period
Description
Not later than
one year
Later than one year and
not later than
five years
Later than
five years
Total
(In millions of Korean Won
)
Non-inter
est-
bearing liab
ilities
୸
16,973,694
୸
17,049
୸
-
୸
16,990,743
Interest-bearing
liabilities
35,391,6
67
68,185,242
9,898,260
113,475,169
Financial
guarantee
818,566
7,085
-
825,651
The maturity anal
ysis i
s based on the non-
discount
ed cash flow
s and the earlies
t maturity dat
e at which payme
n
ts, i.e.
both principal
and inte
rest, sh
ould be made.
(3) Derivative inst
ruments
The Group ent
ers int
o derivati
ve instrument co
ntracts s
uch
a
s currency
forwards, cur
rency
options, currency s
waps and
interest swaps to h
edge its exposure to
changes in foreign exchange rate or interest rate.
As of December 31,
2021 and December 31, 2
020, the
Grou
p
recognized an accum
ulative net profit of
୸
13,980 million
and net profit of
୸
61,882 mi
llion, res
pectively,
in accum
ulate
d other com
prehensi
ve profi
t or los
s, f
or effective
cash
flow hedgi
ng instrume
nts.
The longest peri
od in which t
he forecasted trans
actions are expected to
occur is within 93 months as
of December 31
,
2021.
For the years ende
d December 31, 2021 an
d 2020, the Group recog
nized a net profit o
f
୸
675,508 million and net lo
ss of
୸
509,252 million in profit or
loss (before tax), respectively, wh
ich resulted from the inef
fective portion of its cas
h flow
hedging inst
ruments an
d changes in t
he valuation of
its other non-hedgi
ng derivati
ve instr
u
ments and
others.
ٻ
ٻ
ٻ
ٻ
ړڍٻ
ٻ
In addition,
the Company’s s
ubsidiaries, Hyundai C
ard Co. Ltd. and H
yundai Capi
tal Se
rvices, Inc., that
are operatin
g
financial bus
iness, us
e interest rat
e swaps and currency sw
aps to hedge t
he risks of future
cash flows, which relat
ed to
borrowings
, debentures
and ot
hers, due to market int
erest rat
e
fluctuations and exc
hange rate fluctuati
ons. As o
f December
31, 2021, t
he average he
dge ra
tio is 100%.
38.
RELATED-PARTY AND O
THER TRANSACTIONS:
The transactions
and balances
of receiva
bl
es
and payables
within the G
roup are
w
holly e
liminated in
the prepa
ration of
consolidated fina
ncial statements of t
he Group.
(1)
For the year ended December
31, 2021
, significant transacti
ons
arising from operations
between
the Group
and
related parties or affiliates by t
he Monopoly Regulation an
d Fair Trade Act of t
he Republic of Korea
(“the
Act”)
are as follows.
Description
Sales/
proceeds
Purchases/expenses
Sales
Others
Purchases
Others
(In millio
ns of Korean Won)
Entity with
significant
influence over
the Company
and its
subsidiaries
Hyundai MOBIS
Co., Ltd.
୸
546,326
୸
141,828
୸
9,189,407
୸
80,346
Mobis Alabama, LLC
200,423
58
1,296,680
47,30
3
Mobis Automotive Czech s.r.
o.
11
501
1,948,94
0
12,268
Mobis India, Lt
d.
12,150
2,664
1,060,774
2,263
Mobis Part
s America, LLC
111,115
3,564
1,067,07
6
1,140
Mobis Module C
IS, LLC.
31
315
419,772
31
Mobis Part
s Europe N.V.
16,986
1,450
473,989
746
Others
62,109
1,788
1,120,565
8,564
Joint ventures
and associates
Kia
Corporation
1,167,895
726,215
732,297
786,682
Kia Russ
ia &
CIS, LLC
994,790
112
-
-
Kia
Slovakia s
.r.o..
97,731
281
671,653
4
Kia
Georgia, Inc
.
617,122
1,518
292
-
BHMC
321,700
-
115,309
18,080
HMGC
37,287
1,299
103,139
63,877
Hyundai
WIA Corpo
ration
135,431
1,605
1,280,719
14,515
Others
728,094
64,383
4,505,972
1,816,502
Other related parties
16,780
ٻ
14,627
3,927
6
Affiliates by th
e Act
769,822
ٻ
118,065
8,566,617
922,130
ٻ
ٻ
ٻ
ٻ
ړڎٻ
ٻ
For the year ende
d December 31, 2020,
si
gnificant transactions aris
ing from oper
ations be
tween the Group
and related
parties or af
filiates by the Act are as follo
ws.
Description
Sales/
proceeds
Purchases/expenses
Sales
Others
Purchases
Others
(In millions of Korean Won)
Entity with
significant
influence over
the Company
and its
subsidiaries
Hyundai MOBIS
Co., Ltd.
୸
1,182,103
୸
97,974
୸
7,608,254
୸
73,025
Mobis Alabama, LLC
228,571
1,853
1,253,916
8,791
Mobis Automotive Czech s.r.
o.
7
530
1,752,089
28,556
Mobis India, Lt
d.
9,665
2,508
842,492
16,874
Mobis Part
s America, LLC
73,764
3,541
906,939
729
Mobis Module C
IS, LLC.
-
323
337,999
10
Mobis Part
s Europe N.V.
17,863
4,667
365,834
6
Others
34,398
1,802
844,106
9,565
Joint ventures
and associates
Kia Motors C
orporation
981,100
674,137
337,027
705,038
Kia Motors R
ussia
LLC.
961,759
125
-
-
Kia Motors S
lovakia s.r.o.
98,792
3,060
395,545
-
Kia Motors Manufacturi
ng
Georgia, Inc.
344,749
1,646
75
-
BHMC
232,357
45
97,181
15,277
HMGC
20,321
16
64,627
42,957
Hyundai WIA C
orporation
116,640
2,752
1,252,89
3
42,905
Others
711,2
31
61,490
4,051,20
0
1,809,744
Other relate
d parties
7,639
4,835
103
4
Affiliates by the Act
818,760
241,185
6,641,683
737,717
(2)
As of December 31, 2021
, significant balances related t
o
the transactions
between the Group and related
parties or
affiliates by the Act are as follows.
Description
Receivables (*
1,2)
P
ayables
Trade notes
and accounts
receivable
Other
receivables
and others
Trade notes
and accounts
payable
Other
payables
and others
(In millions of Korean Won
)
Entity with
significant
influence over
the Company
and its
subsidiaries
Hyundai MOBIS
Co., Ltd.
୸
92,116
୸
301,436
୸
1,687,603
୸
466,862
Mobis Alabama, LLC
14,344
-
108,355
-
Mobis Automotive Czech s.r.
o.
-
901
194,217
-
Mobis India, Lt
d.
1,370
18
123,770
5
Mobis Part
s America, LLC
31,309
62
101,750
-
Mobis Module C
IS, LLC
15
37
50,666
-
Mobis Part
s Europe N.V
.
550
118
47,095
18
Others
11,339
491
101,671
6,947
Joint ventures
and associates
Kia
Corporation
328,668
335,571
84,505
121,814
Kia Russ
ia &
CIS, LLC
134,733
48
-
-
Kia Slovaki
a s.r.o.
6,832
279
46,186
205
Kia Georgia, Inc
.
91,109
64,378
11,120
96,639
Kia America, Inc.
-
149,910
9
-
BHMC
199,426
13,626
12,34
4
414
HMGC
6,019
21,752
4,479
37,996
Hyundai
WIA
Corporati
on
31,147
920
185,022
28,048
Others
209,556
69,666
679,046
920,138
Other relate
d parties
80
710
52
-
Affiliates by the Act
154,455
61,484
905,856
351,422
(*1) The Group h
as recogni
zed the loss allo
wance for th
e related part
ies' receiv
ables in
the amou
nt of
୸
209 millio
n as of D
ecembe
r 31,
2021 an
d the
ٻ
reversa
l of im
pairme
nt loss is
re
cognize
d in the amou
n
t of
୸
56 million for the year ended December 31
, 2021.
(*2)
As o
f December 31,
2021, out
stand
ing paymen
t of
୸
22,096
million of c
orporate p
urchase c
ard agr
eeme
nt provided
by Hyunda
i Car
d
Co., L
td. is inclu
ded. For th
e year ended Decemb
er 31, 20
21, amoun
t used and
repayment o
f agreement are
୸
383,299 m
illion and
୸
406,133 m
illio
n, respe
cti
vely.
ٻ
ٻ
ٻ
ٻ
ړڏٻ
ٻ
As of December 31, 2020
, significant balances related t
o
th
e transactions
between the Group and related parties or
affiliates by the Act are as follows.
Description
Receivables (*
1,2)
P
ayables
Trade notes
and accounts
receivable
Other
receivables
and others
Trade notes
and accounts
payable
Other
payables
and others
(In millions of Korean Won
)
Entity with
significant
influence over
the Company
and its
subsidiaries
Hyundai MOBIS
Co., Ltd.
୸
305,479
୸
422,870
୸
1,326,453
୸
363,166
Mobis Alabama, LLC
10,425
-
135,098
3,116
Mobis Automotive Czech s.r.
o.
-
160
236,598
2,420
Mobis India, Lt
d.
2,021
3
172,639
4
Mobis Part
s America, LLC
19,410
71
73,300
-
Mobis Module C
IS, LLC
-
33
41,556
-
Mobis Part
s Europe N.V.
1,242
106
27,709
-
Others
5,121
1,404
74,319
8,078
Joint ventures
and associates
Kia Motors C
orporation
451,424
227,908
87,563
173,321
Kia Motors R
ussia LLC
.
136,195
21
-
-
Kia Motors S
lovakia s.r.o.
7,501
676
55,316
87
Kia Motors Manufacturi
ng
Georgia,
Inc.
57,050
96,725
2,292
4,517
Kia Motors Ameri
ca, Inc.
-
93,361
69
19,491
BHMC
84,642
15,409
7,552
1,801
HMGC
16,103
19,546
10,739
28,404
Hyundai WIA C
orporation
34,683
10,120
206,312
44,536
Others
240,510
59,201
693,955
901,694
Other relate
d parties
57
600
10
-
Affiliates by the Act
166,666
35,421
991,058
337,537
(*1) The Group h
as recogni
zed the loss allo
wance for th
e related part
ies' receiv
ables in
the amou
nt of
୸
265 millio
n as of D
ecembe
r 31,
2020 an
d the r
evers
al of
impair
ment lo
ss is rec
ognized
in the a
mount of
୸
17
1 million fo
r the year ended
December 31, 2020
.
(*2)
As o
f December 31,
2020, out
stand
ing paymen
t of
୸
44,930
million
of corporate p
urchase ca
rd agr
eeme
nt provided b
y Hyunda
i Car
d
Co., L
td. is includ
ed. For the y
ear ended Decemb
er 31, 20
20, amount
used and rep
ayment of ag
reement are
୸
296,
011 millio
n and
୸
272,308 m
illio
n, respe
cti
vely.
(3)
Significant fund transactions
and
equit
y contribution transac
tions
for the year e
nded
Decem
ber 31,
2021, between
the Group and
related parti
es are as
follows.
Loans
B
orrowings
Equity
Description
Lending
Co
llection
Borr
owing
Repaym
ent
contrib
ution
(In
millions of Korean won)
Joint ventures and ass
ociates
-
-
-
୸
7,600
୸
313,720
Significant fund transacti
ons a
nd equity contri
bution t
ransactions for the
year
ended December 31
, 2020, between
the Group and related par
ties
are as follows.
Loans
Borrowings
Equity
Description
Lendin
g
Collection
Borro
wing
Repayment
contribution
(In thousands of
USD Dollar and Chinese Yuan,
In millions of Korean
won)
Joint ventures and ass
ociates
-
ଋ
5,000
$ 5,000
-
୸
1,867,971
୸
16,000
-
For the years ended Decem
ber 31, 2021
a
nd 202
0, the Grou
p received di
vidends of
୸
209,
957 m
illion and
୸
213,820
million from
related pa
rties and affiliates
by the Act,
respectively and
paid dividends of
୸
322
,421 million and
୸
240,877 million to related p
arties, respectiv
ely. During
2021, the Group traded in
othe
r financial assets and others of
୸
2,660,000 million with HYUNDAI MOTOR
SECURITIES Co., Ltd
., an associate of the Grou
p. The Group has
other fin
ancial assets of
୸
555,000 million in the cons
olidated
statement of financial position as
of December 31, 2021
.
ٻ
ٻ
ٻ
ٻ
ړڐٻ
ٻ
For the years ended Decem
ber 31, 2021
, and 2020, HYUNDAI
MOTOR SECURITIES CO., Ltd., an ass
ociate of the
Group, acquired bo
nds issued by the c
onso
lidated entities, Hyundai C
apital Services
Inc. a
nd Hyundai Card Co, Ltd. in
amount of
୸
30,000 million
and
୸
70,000 million respectively.
(4)
Compensati
on of regis
tered and unre
g
iste
red directors
,
who are cons
idered to be the key m
anagement
personnel
for the years ende
d
December 31, 20
21 and 2020
are as follows.
ٻ
Description
2021
2020
(In millions of Korean Won)
Short-term em
ployee salari
es
୸
296,733
୸
270,833
Retirement benefit costs
48,
906
45,683
Other long-term be
nefits
1,
209
964
୸
346,848
୸
317,480
(5)
For the year ended December
31, 2021,
the Group offer
pa
yment guarantee to related parti
es and affiliates by the
Act.
39. COMMITMEN
TS AND C
ONTINGENCI
ES:
(1)
As of December 31, 2021
, the debt gua
rantees prov
ided by t
he Group, excluding the ones
provided to the
Company’s subs
idiaries are as
follows.
Description
Do
mestic
Overseas
(*)
(In millions of Korean Won
)
To associates
୸
28,299
୸
101,470
To others
6,381
821,942
୸
34,680
୸
923,412
(*)
T
he guaran
tee amoun
ts in foreign cu
rrencies are tran
slated i
nto Korean Won u
sing the Base Rate an
noun
ced by Seou
l Money
Brokerag
e Services, Ltd
. as of December 31, 2021
.
(2)
As of December 31, 2021, the
Group is involved in domestic
and foreign laws
uits as a
defendant.
In addition, the
Group is involved in laws
uits for pro
duct liabilities and
ot
hers. The Group obtains i
nsurance for potential loss
es
which may
result from product liabilities and
other lawsuits. I
n addition
, as of December 31, 2021,
the Group is
under investigation b
y related authorities in relation to t
h
e theta 2 engine recall, and its
results and impacts are
unpredicta
ble. The Group i
s unable t
o estimate t
he outcome
of the laws
uits and the amo
unt and timing of out
flows
of resources are uncert
ain. The Group ex
pects that t
he impact on the consoli
dated financi
al statements will not be
material.
(3)
As of December 31, 2021, a s
ubstantial portion of the Group’
s
PP&E is pledged as collat
eral for various loa
ns and
leasehold depos
its up to
୸
768,163
million. In addit
ion, the G
roup pledged
certai
n
bank
deposits,
checks
and
promisso
ry notes, in
cluding 213,4
66 shares of Kia Co
rporation,
as collateral to fin
ancial institutio
ns and oth
ers.
Certain receivables held by
the Company’s foreign su
bsidia
ries, such as financial services
receivables are pledged
as collateral for th
eir borrowings.
(4)
As of December 31, 202
1, the G
roup has ove
rdrafts
, genera
l
loans, and trade-
financing agreements wi
th numerous
financial institutions includi
ng Kookmi
n Bank, with
a co
mbined limit of up to
USD 27,5
00 million, and
୸
5,52
7,400
million.
(5)
As of December 31, 2021, Hyundai Capital S
ervices, Inc. an
d Hyundai Card Co., Ltd. ha
ve entered into agreeme
nts
for certain borrowi
ngs inclu
ding trigger claus
es for the pu
rpose of credi
t enhancement.
If the credit
rating of Hyunda
i
Capital Services, Inc. an
d Hyun
dai Card Co., Ltd
. falls belo
w a certain leve
l, this may re
sult in early rep
ayment of
the borrowings
or termi
nation
of the contract
s.
(6)
As of December 31,
2021, H
yundai Capital Services, I
nc. and Hyundai C
ard Co., Ltd., the
subsidiaries of
the
Company are able to e
xercise the prio
rity
purchasi
ng rights
for the leased
office building when the le
ssor want
s t
o
sell t
he building or aft
er 4 yea
rs and 5 mont
hs from t
he leas
e contract commenceme
nt date.
ٻ
ٻ
ٻ
ٻ
ړڑٻ
ٻ
(7)
As of December 31, 2021, the
Company’s total retur
n swap co
ntract is terminated u
pon the
sale of stocks of Hyun
dai
Capital Services, Inc., th
e subsidiary of the Company, h
eld by the third party investo
r.
(8)
As of December 31, 2021, the
Company has a s
hareholder ag
re
ement with investors of thir
d parties regarding s
hares
of Hyundai Card C
o., Ltd. and Hyundai C
ommercial Inc. T
his includes
the call options
that allow the Company t
o
buy shares from t
he inves
tors
and the put o
ptions t
hat allow t
he investors
to dispose o
f the shares to the Compan
y.
(9)
In December 2019, the
Company entered i
nto an agree
ment to invest
୸
1,408,220 million in the constructio
n of new
Global Business
Centre (GB
C). As of December 31, 20
21, the Company
has recognized relevant liability in
the
amount of
୸
937,
555 million in accord
ance with the agreement
with the Seoul governm
ent to implement public
contributio
ns relating to the ne
w construction proj
ect.
(10)
As of December 31,
2021, t
he Company entered into a
share purchase agreement wit
h the third party i
nvestor
regarding shares
of Bos
ton D
ynamics, Inc
. The s
hareholder
contract c
ontains p
ut opti
ons t
hat give the
investor
the
right to sel
l its s
hares to the Purchasers
, including the C
ompany, and the Purchasers are j
ointly and several
ly
responsible for the put rights. The total
amount of a
dditional obligation of the
Company i
n the event of de
faults of
the other Purchas
ers is
୸
88,566 million
.
(11)
Financial instruments with rest
rict
ed use
for the years ended
December 31
, 2021 and 2
020 are as follows.
Description
December 31, 2021
December 31, 20
20
(In millions of Korean Won)
Short-term an
d long-term
financial
instrum
ents
୸
1,694,904
୸
840,628
Cash and cas
h equivalents
225,731
113,799
Other financial
asset
s
2
7,969
୸
1,920,637
୸
962,396
40. SEGMENT
INFORMAT
ION:
(1) The Group has vehi
cle segm
ent, finance se
gment and oth
ers segment. The vehicle segment
is engaged in the
manufacturing and
sale of m
otor ve
hicles. The finan
ce segm
ent operates ve
hicle financing, c
redit card proces
sing
and other financin
g activities. Others segment in
cludes the R&D, train manufactu
ring and other activities.
(2)
Sales and operating profit by
operating segments for t
he
years ended December 31, 2
021 and 20
20 are as follows
.
For the year ende
d December 31, 2021
(*1)
Operating prof
it of the ve
hicle s
egm
ent incl
ude i
nternal
transaction a
djustme
nts.
(*2)
Net sal
es represent sales fro
m external cu
stomers.
Vehicle
(*1)
Finance
Others
Total
Net sales
(*2)
୸
94,143,019
୸
ٻ
16,782,412
୸
6,685,195
୸
117,610,
626
Operating
profit
4,155,765
2,195,377
327,807
6,678,94
9
Inter-company
sales
(52,033,375)
(318,479
)
(1,352,273)
(53,704,127)
ٻ
ٻ
ٻ
ٻ
ړڒٻ
ٻ
For the year ended D
ecember 31, 2
020
ٻ
Veh
icle
(*1)
Finance
Others
Total
Net sales
(*2)
୸
G
80,577,320
୸
G
16,848,079
୸
G
6,572,202
୸
G
103,997,
601
Operating
profit
728,139
1,367,913
298,619
2,394,671
Inter-company
sales
(42,456,
564)
(353,
708)
(1,483,913)
(44,294,185)
(*1)
In
cludes operat
ing profit related
to internal tran
saction adjust
ments.
(*2)
Sal
es from external
customers.
(3)
Assets and
liabilities by op
erating segments as
of December 31, 2021 are as follows.
December 31, 2021
Vehicle
Finance
Others
Consolidatio
n
adjustments
Total
(In millio
ns of Korean Won)
Total assets
୸
121,826,
011
୸
G
120,951,
619
୸
G
8,836,191
୸
G
(17,667,
406)
୸
233,946,
415
Total liabilities
54,135,289
104,597,059
5,199,761
(12,601,
483)
151,330,
626
Borrowings
and debent
ures
12,568,592
96,73
4,509
2,569,958
(4,079,781)
107,793,
278
Assets and liabilities by operat
ing segments as of December
31, 2020 are as
follows.
December 31, 2020
Vehicle
Finance
Others
Consolidatio
n
adjustments
Total
(In millions of Korean Won)
Total assets
୸
115,561,
852
୸
102,201,
169
୸
8,532,445
୸
(16,951,
254)
୸
209,344,
212
Total liabilities
50,893,713
88,267,154
5,182,89
2
(11,340,517)
133,003,242
Borrowings
and debent
ures
10,920,3
55
80,44
0,613
2,520,615
(2,474,823)
91,406,7
60
(4)
Sales by
region based on where the Group’s entities are lo
cated for the years ended December 31, 2021 and 2020
are as follows.
For
the
y
ear ended Decemb
er 31, 2021
ٻ
Korea
North
America
Asia
Euro
p
e Others
To
tal
(In millions of Korean Won
)
Net sales
୸
41,33
2,243
୸
40,75
0,484
୸
11,39
0,768
୸
21,50
8,735
୸
2,628,
396
୸
117,610,
626
For the
y
ear ended Decemb
er 31, 20
20
Korea
North
America
Asia
Europe
Others
Total
(In millions of Korean Won)
Net sales
୸
40,28
4,242
୸
36,62
8,365
୸
8,752,
024
୸
16,44
7,637
୸
1,885,
333
୸
103,997,
601
ٻ
ٻ
ٻ
ٻ
ړړٻ
ٻ
(5)
Non-current assets by regio
n wher
e the Group’s entities are
located in as
of December 31,
2021 and Dece
mber 31,
2020 are
as follows.
Description
December 31,
2021
December 31,
2020
(In millions of Korean Won)
Korea
୸
33,323,986
୸
32,562,450
North America
2,967,662
2,691
,789
Asia
2,781,728
2,429
,368
Europe
2,254,395
2,234
,466
Others
520,729
354,279
41,848,500
40,272,352
Consoli
dation adjus
tments
(301,775
)
(341,589)
Total (*)
୸
41,546,725
୸
39,930,763
(*)
Total amount is the
same a
s summa
tion of PP&E,
intangible as
sets and i
nvestment
propertie
s.
(6)
There is no single e
xternal customer who
represents 10%
or
more of the Gro
up’s revenue
for the years ended
December 31, 2021 a
nd 2020.
41. CONSTRUCTION
CONTR
ACTS:
(1)
Cost, income and los
s and cl
aimed constructi
on from
construct
ion in prog
ress as of December 31, 2
021 and
December 31, 2020 a
re as follows.
Description
December 31,
2021
December 31,
2020
(In millions of Korean Won)
Accumulated cost
୸
12,658,465
୸
11,602,563
Accumulated income
146,975
254,593
Accumulated co
nstructi
on in proces
s
12,805,440
11,857,156
Progr
ess billing
12,286,456
11,460,905
Due from cust
omers
1,421,108
1,252
,117
Due to customers
902,124
855,866
Reserv
e (*)
79,161
95,459
(*)
Reserv
e is recog
nized as long
-term trade n
otes and
accounts receivab
le in the con
solidated
financial statemen
ts.
(2)
Effects on
profit
or loss of cur
rent and future pe
riods, due fr
om customers relat
ed to
changes i
n accounti
ng esti
mates
of total contract
revenue and t
otal contract costs of ongoi
ng
contracts of Hyun
dai Rotem, a subsidiary of t
he Company,
as of December 31,
2021 are as follows.
Description
December 31, 20
21
(In millions of Korean Won)
Changes in accounting estimates
of total contract reven
ue
୸
154,893
Changes in
accounting estimates o
f total contr
act costs
134,441
Effects on profi
t or loss
of cur
rent period
(3,913)
Effects on profi
t or los
s of fut
ure periods
24,365
Changes in due from customers
50,544
Provisi
on for cons
tructio
n loss
46,357
Effects on profi
t or loss
of current and future peri
ods were
calculated with estimated to
tal contr
act costs and estimated
total contract re
venue based on
factors that are
considered to b
e relevant f
rom comme
ncement of the
contract to December
31, 2021. Total co
ntract reven
ue and costs
may change in fu
ture periods.
(3)
There is no contract as of D
ecember 31
, 2021, in
which co
ntract revenue i
s recognized
by the pro
portion of c
ontract
costs incurred, t
hat accounte
d for more than 5% of t
he Group's revenue in the p
rior period
.
ٻ
ٻ
ٻ
ٻ
ړڔٻ
ٻ
42.
BUSINESS
COMB
INATIO
NS:
(1) For the year ended December 31, 2021, the Group acq
u
ired 50% of the shares of the HYUNDAI THANH CONG
VIET NAM AUTO JOINT VENTURE JOINT STOCK CO
MPANY (HTV).
The accounting for the business combination
at the acquisitio
n date is as follows.
Descri
ption
Amount
(In millions of Korean Won)
Total consi
derations trans
ferred
୸
285,050
Non-con
trolling intere
sts
202,039
Assets and liab
ilities acquired:
Current assets
110,151
Non-current assets
366,471
Property,
plant a
nd equipme
nt
1,007
Intangibl
e asset
s
361,238
Others
4,226
Current liab
ilities
190
Non-current liab
ilities
72,354
Fair value of
identifiable net assets
404,078
Goodwill
83,011
The amounts of sales an
d net profit of the acquiree since the acqu
isition date included
in the consolidated statement of
income for the
year ended De
cember 31, 2
021 are
G
୸
1,348,
323 m
illion and
୸
92,168 million, respectively
.
(2) For the year
ended Decem
ber 31, 2021, t
he Group acq
uired 82.48% of the s
har
es of the AirPlug Inc.
The accounting for the business combination
at the acquisitio
n date is as follows.
Descri
ption
Amount
(In millions of Korean Won)
Total consi
derations trans
ferred
୸
24,472
Non-con
trolling intere
sts
31
Assets and liab
ilities acquired:
Current assets
3,720
Non-current assets
2,252
Current liab
ilities
927
Non-current liab
ilities
517
Fair value of
identifiable net assets
4,528
Goodwill
19,975
The amounts of s
ales and net
profit o
f the acquiree s
ince the
acquisition d
ate included in th
e consolidated statement
of
loss for the year
ended December 31, 20
21 are
G
୸
870 million and
୸
2,098 million,
respectively.