HYUNDAI MOTOR COMPANY
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
DECEMBER 31, 2023
ATTACHMENT: INDEPENDENT AUDITORS’ REPORT
HYUNDAI MOTOR COMPANY
AND ITS SUBSIDIARIES
Contents
INDEPENDENT AUDITORS’ REPORT ---------------------------------------------------------------- 1
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ----------------------------------- 6
CONSOLIDATED STATEMENTS OF INCOME ------------------------------------------------------ 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
INDEPENDENT AUDITOR’S AUDIT OPINION
ON INTERNAL CONTROL OVER FINANCIAL REPORTING ----------------------------------- 104
Ernst & Young Han Young
2-4F, 6-8F, Taeyoung Building, 111, Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea
Tel: +82 2 3787 6600
Fax: +82 2 783 5890
ey.com/kr
Independent auditor’s report
(English Translation of a Report Originally Issued in Korean)
The Shareholders and the Board of Directors
Hyundai Motor Company
Opinion
We have audited the accompanying consolidated financial statements of Hyundai Motor Company and its
subsidiaries (collectively referred to as the “Group”), which comprise the consolidated statements of financial
position as of December 31, 2023, and the consolidated statements of income, the consolidated statements of
comprehensive income, consolidated statements of changes in equity and consolidated statements of cash
flows for the year ended December 31, 2023, and the notes to the financial statements, including a summary
of material accounting policy information.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as of December 31, 2023, and its consolidated financial performance and its
consolidated cash flows for the year ended December 31, 2023, in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (“KIFRS”).
We have audited the Group’s internal control over financial reporting as of December 31, 2023, based on
criteria established in Internal Control – Design and Operation Integrated Framework in accordance with
Korean Standards on Auditing (“KSA”) issued by the Committee of Internal Control Operations, and our report
dated March 6, 2024 expressed an unmodified opinion thereon.
Basis for Opinion
We conducted our audit in accordance with Korean Standards on Auditing (“KSA”). Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report. We are independent of the Group in accordance with the ethical requirements
that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements for the year ended December 31, 2023. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
1) Valuation of sales warranty provision
As described in Note 2.(20) to the consolidated financial statements, the Group provides free warranty services
to customers during guaranteed period after the sale of the vehicle and also in the event of a recall or campaign
due to quality issues. As of December 31, 2023, the Group has recognized a total of ￦9,121,253 million in
sales warranty provision, including provision for the obligation to provide free warranty services (Note 17).
When estimating the balance of provisions for the obligation to provide free repairs, the Group uses historical
data such as sales volume by vehicle type and past repair expenses that occurred from warranty services, and
assumptions such as expected increase rate of unit repair price and expected free repair occurrence rate. The
amount of basic data collected and aggregated in the process is vast and complex, and the applied
management assumptions are highly subjective and uncertain. Therefore, we selected the valuation of the
A member firm of Ernst & Young Global Limited
sales warranty provision as a key audit matter as it is probable that that any error in such data or assumptions
might cause a material misstatement in the consolidated financial statements.
The primary audit procedures we performed to address this key audit matter included the following:
- Evaluating whether control activities to measure and recognize the sales warranty provision are properly
designed and operated;
- Using IT specialists to evaluate whether general control and automatic control of the IT system that
aggregates historical sales warranty data are properly designed and operated;
- Comparing the source data of management’s accounting estimates with other internal and external
information;
- Comparing the sources of management’s main assumptions used for measurement of related liabilities with
historical data;
- Recalculating the balance of sales warranty provisions independently as of the end of the reporting period;
- Evaluating by comparing the estimates by each vehicle type as of the end of the immediately preceding
reporting period and the actual amount as of the end of the current reporting period; and
- Evaluating the appropriateness of other significant considerations that have affected the balance of
provisions.
2) Valuation of financial services receivables
According to the accounting policies for valuation of financial services receivables described in Note 2.(8) to
the consolidated financial statements, as of December 31, 2023, the Group recognized financial services
receivables, net, and loss allowance of ￦110,055,651 million and ￦ 1,769,240 million, respectively (Note 14).
In accordance with KIFRS 1109 Financial Instruments, the Group recognizes allowance for credit loss for
financial services receivables using the expected credit loss (ECL) model. The ECL model requires
management judgment to assess whether the receivable has undergone a significant increase in credit risk,
as well as other assumptions, such as credit rating and macroeconomic variables. In addition, the Group also
considers historical transaction data, such as delinquency days, bankruptcy, and collection, to determine
assumptions used in the ECL model. As errors in the assumptions applied to the ECL model could have a
significant impact on the consolidated financial statements, we identified the valuation of financial services
receivables as a key audit matter.
The primary audit procedures we performed to address this key audit matter included the following:
- Assessing whether the Group’s accounting policies comply with the requirements in KIFRS 1109 Financial
Instruments;.
- Understanding the process over the measurement of credit loss allowance for financial services receivables
and testing relevant controls;
- On a sample basis, assessing the credit rating and classification of credit quality, including the identification
of significant increase in credit risk, through inspection of related documents; and
- On a sample basis, checking the source data for probability of default and loss given default and testing
appropriateness of calculation methods used for the estimation through recalculation.
Other matter
The accompanying consolidated financial statements of the Group for the year ended December 31, 2022 were
audited by other auditors who expressed an unmodified opinion on those statements on March 8, 2023.
Meanwhile, the consolidated financial statements for the year ended December 31, 2022, audited by other
auditors, do not reflect the impact of the discontinued operations described in Note 43.
A member firm of Ernst & Young Global Limited
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements
in accordance with KIFRS, and for such internal control as management determines is necessary to enable
the preparation of the consolidated financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with KSA will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with KSA we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial
statements and the reasonableness of accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors’ report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
A member firm of Ernst & Young Global Limited
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditors’ report is Do hun, Han.
Seoul, Korea
March 6, 2024
This audit report is effective as of March 6, 2024, the independent auditor’s report date. Accordingly, certain
material subsequent events or circumstances may have occurred during the period from the date of the
independent auditor’s report to the time this report is used. Such events and circumstances could significantly
affect the accompanying consolidated financial statements and may result in modifications to this report.
A member firm of Ernst & Young Global Limited
HYUNDAI MOTOR COMPANY
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR EACH OF THE TWO YEARS IN THE PERIOD ENDED
DECEMBER 31, 2023
The accompanying consolidated financial statements, including all footnote disclosures, were
prepared by, and are the responsibility of, the Company.
Chang, Jae Hoon
Chief Executive Officer
HYUNDAI MOTOR COMPANY
Main Office Address: (Road Name Address) 12, Heolleung-ro, Seocho-gu, Seoul
(Phone Number) 02-3464-1114
5
5
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND DECEMBER 31, 2022
ASSETS
NOTES December 31, 2023
December 31, 2022
(In millions of Korean Won)
￦
Current assets:
Cash and cash equivalents
Short-term financial instruments
Other financial assets
Trade notes and accounts receivable
Other receivables
Inventories
Current tax assets
Financial services receivables
Non-current assets classified as held for sale
Other assets
Total current assets
Non-current assets:
Long-term financial instruments
Other financial assets
Long-term trade notes and accounts receivable
Other receivables
Property, plant and equipment
Investment property
Intangible assets
Investments in joint ventures and associates
Net defined benefit assets
Deferred tax assets
Financial services receivables
Investments in operating leases
Right-of-use assets
Other assets
Total non-current assets
20
20
5,20
3,20
4,20
6
14,20
8,43
7,20
20
5,20
3,20
4,20
9,40
10,40
11,40
13
35
34
14,20
15
12
7,20
19,166,619 ￦
7,339,968
2,802,611
4,682,182
3,431,169
17,400,346
195,696
43,120,684
434,503
3,150,939
101,724,717
154,966
4,423,388
210,979
855,015
38,920,900
146,148
6,218,585
28,476,142
488,181
3,604,977
64,566,977
29,664,618
1,037,643
1,970,119
180,738,638
20,864,879
5,774,597
5,934,745
4,279,057
4,458,689
14,291,216
85,867
38,037,368
22,302
2,640,553
96,389,273
112,557
3,889,776
179,781
821,050
36,153,190
144,450
6,102,377
25,199,437
837,502
3,237,309
52,326,478
27,681,534
1,117,293
1,550,455
159,353,189
Total assets
￦
282,463,355 ￦
255,742,462
(Continued)
6
6
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND DECEMBER 31, 2022
LIABILITIES AND EQUITY
NOTES December 31, 2023 December 31, 2022
(In millions of Korean Won)
Current liabilities:
Trade notes and accounts payable
Other payables
Short-term borrowings
Current portion of long-term debt and debentures
Income tax payable
Provisions
Other financial liabilities
Lease liabilities
Non-current liabilities classified as held for sale
Other liabilities
Total current liabilities
Non-current liabilities:
Long-term other payables
Debentures
Long-term debt
Net defined benefit liabilities
Provisions
Other financial liabilities
Deferred tax liabilities
Lease liabilities
Other liabilities
Total non-current liabilities
Total liabilities
￦
20
20,39
16,20
16,20
17
18,20
12,20
8,43
19,20,27
20,39
16,20
16,20
35
17
18,20
34
12,20
19,20,27
10,952,046 ￦
8,642,808
9,035,548
25,109,158
1,324,720
7,316,877
56,712
224,350
122,851
10,577,033
73,362,103
616,011
73,033,493
17,569,760
77,268
4,333,841
176,399
5,438,976
834,052
5,212,012
107,291,812
10,797,065
8,277,891
11,366,480
25,574,131
1,008,506
8,102,596
99,144
405,053
5,365
8,600,241
74,236,472
726,115
62,960,060
12,285,149
61,861
4,327,985
262,518
5,027,741
705,751
4,252,265
90,609,445
Equity:
Capital stock
Capital surplus
Other capital items
Accumulated other comprehensive loss
Retained earnings
Equity attributable to the owners of the Company
21
22
23
24
25
Non-controlling interests
Total equity
180,653,915
164,845,917
1,488,993
4,378,489
(1,197,084)
(838,892)
88,665,805
92,497,311
9,312,129
101,809,440
1,488,993
4,241,303
(1,713,928)
(1,620,682)
79,953,601
82,349,287
8,547,258
90,896,545
Total liabilities and equity
￦
282,463,355 ￦
255,742,462
(Concluded)
See accompanying notes to the consolidated financial statements.
7
7
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
NOTES
2023
2022
(In millions of Korean Won, except per share amounts)
￦
142,151,469
162,663,579 ￦
129,179,183
113,879,569
27,40
32
Sales
Cost of sales
Gross profit
Selling and administrative expenses
28,32
18,357,495
33,484,396
28,271,900
18,446,972
Operating profit
15,126,901
9,824,928
Gain on investments in joint ventures and
associates, net
Finance income
Finance expenses
Other income
Other expenses
29
30
30
31
31,32
2,470,933
1,559,538
970,700
1,782,333
2,350,343
1,557,630
985,893
879,638
1,930,914
2,238,256
Profit before income tax
17,618,662
11,181,471
Income tax expense
34
4,626,640
Profit from continuing operations
￦
12,992,022 ￦
Discontinued operations
Loss from discontinued operations
43
￦
(719,721) ￦
Profit for the year
Profit attributable to:
Owners of the Company
Non-controlling interests
Earnings per share attributable to the owners
of the Company:
Basic earnings per share:
Common stock
From continuing operations
From discontinued operations
1st preferred stock
From continuing operations
From discontinued operations
33
￦
￦
12,272,301
11,961,717
310,584
45,703 ￦
47,622
(1,919)
45,535 ￦
47,445
(1,910)
Diluted earnings per share:
Common stock
1st preferred stock
45,703 ￦
45,535 ￦
See accompanying notes to the consolidated financial statements.
￦
￦
2,979,168
8,202,303
(218,689)
7,983,614
7,364,364
619,250
28,521
29,105
(584)
28,207
28,783
(576)
28,521
28,207
8
8
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Profit for the year
2023
2022
(In millions of Korean Won)
￦
12,272,301 ￦
7,983,614
Other comprehensive income (loss) :
Items that will not be reclassified subsequently to
profit or loss:
Profit (loss) on financial assets measured at FVOCI, net
Remeasurements of defined benefit plans
Changes in retained earnings of equity-accounted
investees, net
Changes in share of OCI of equity-accounted
investees, net
Items that may be reclassified subsequently to
profit or loss:
Gain (loss) on financial assets measured at FVOCI, net
Gain (loss) on valuation of cash flow hedge
derivatives, net
Changes in share of OCI of equity-accounted
investees, net
Gain on foreign operations translation, net
Total other comprehensive income
79,056
(312,128)
(223,420)
391,308
(219,981)
164,475
40,297
(412,756)
13,884
(227,671)
328,032
455,051
569,296
156,540
(175,059)
157,304
(36,545)
218,377
10,008
701,718
893,558
1,050,862
Total comprehensive income
￦
12,428,841 ￦
9,034,476
Comprehensive income attributable to:
Shareholders of the Company
Non-controlling interests
Total comprehensive income
12,204,426
224,415
12,428,841 ￦
8,234,396
800,080
9,034,476
￦
See accompanying notes to the consolidated financial statements.
9
9
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Capital
stock
Capital
surplus
Other
capital
items
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total equity
attributable to
the owners of
the Company
Non-
controlling
interests
Total
equity
(In millions of Korean Won)
￦ 1,488,993 ￦ 4,070,260 ￦ (1,968,385) ￦ (1,772,601) ￦ 73,167,855 ￦ 74,986,122 ￦ 7,629,667 ￦ 82,615,789
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(193,452)
174,346
(3,303)
447,909
-
-
7,364,364
7,364,364
619,250
7,983,614
(430,012)
174,758
(255,254)
(4,711)
(259,965)
169,796
-
169,796
48,581
218,377
(160,325)
164,475
4,150
(4,726)
(576)
-
378,880
378,880
12,428
391,308
572,460
-
572,460
129,258
701,718
151,919
8,082,477
8,234,396
800,080
9,034,476
-
(1,298,212)
(1,298,212)
(56,800)
(1,355,012)
-
-
-
-
-
-
-
-
-
-
-
560
560
-
273,271
273,271
-
(83,094)
(83,094)
(193,452)
-
(193,452)
-
1,481
622,255
(1,822)
-
(16,426)
622,255
(18,248)
171,043
254,457
-
(1,296,731)
(871,231)
117,511
(753,720)
￦ 1,488,993 ￦ 4,241,303 ￦ (1,713,928) ￦ (1,620,682) ￦ 79,953,601 ￦ 82,349,287 ￦ 8,547,258 ￦ 90,896,545
Balance as oft
January 1, 2022
Comprehensive
income:
Profit for the period
Gain (loss) on financial
assets measured at
FVOCI, net
Gain on valuation
of cash flow hedge
derivatives, net
Changes in valuation
of equity-accounted
investees, net
Remeasurements of
defined benefit plans
Gain on foreign
operations
translation, net
Total comprehensive
income
Transactions with
owners, recorded
directly in equity:
Payment of cash
dividends
Increase in paid-in
capital of
subsidiaries by
issuing stock
Acquisition of
investment of
subsidiaries
Disposals of
investment of
subsidiaries
Purchases of
treasury stocks
Disposals of
treasury stocks
Others
Total transactions with
owners, recorded
directly in equity
Balance as of
December 31, 2022
(Continued)
10
10
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Capital
stock
Capital
surplus
Other
capital
items
Accumulated
other
comprehensive
income (loss)
Retained
earnings
Total equity
attributable to
the owners of
the Company
Non-
controlling
interests
Total
equity
(In millions of Korean Won)
￦ 1,488,993 ￦ 4,241,303 ￦ (1,713,928) ￦ (1,620,682) ￦ 79,953,601 ￦ 82,349,287 ￦ 8,547,258 ￦ 90,896,545
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46,828
22,898
-
-
-
-
-
-
-
-
-
-
-
-
67,491
201,432
-
-
-
(31)
315,412
-
-
-
-
11,961,717
11,961,717
310,584
12,272,301
119,124
(26,118)
93,006
(66)
92,940
(149,287)
-
(149,287)
(78,384)
(227,671)
348,212
(219,981)
128,231
20,117
148,348
-
(292,982)
(292,982)
(19,146)
(312,128)
463,741
-
463,741
(8,690)
455,051
781,790
11,422,636
12,204,426
224,415
12,428,841
-
(2,358,316)
(2,358,316)
(140,764)
(2,499,080)
-
-
-
-
-
-
-
-
-
-
-
-
(315,412)
-
46,828
814,374
861,202
22,898
(26,341)
(3,443)
-
20,546
20,546
268,923
-
-
-
-
268,923
-
159,590
159,590
-
(36,704)
-
(36,735)
(300,000)
13,051
(300,000)
(23,684)
137,186
516,844
-
(2,710,432)
(2,056,402)
540,456
(1,515,946)
￦ 1,488,993 ￦ 4,378,489 ￦ (1,197,084) ￦
(838,892) ￦ 88,665,805 ￦ 92,497,311 ￦ 9,312,129 ￦ 101,809,440
Balance as of
January 1, 2023
Comprehensive
income:
Profit for the period
Gain (loss) on financial
assets measured at
FVOCI, net
Loss on valuation
of cash flow hedge
derivatives, net
Changes in valuation
of equity-accounted
investees, net
Remeasurements of
defined benefit plans
Gain on foreign
operations
translation, net
Total comprehensive
income
Transactions with
owners, recorded
directly in equity:
Payment of cash
Dividends
Increase in paid-in
capital of subsidiaries
by issuing stock
Acquisition of
investment in
subsidiaries
Disposals of
investment in
subsidiaries
Disposals of
Treasury stocks
Retirement of
Treasury stocks
Issue of
hybrid bonds
Repayments of
hybrid bonds
Others
Total transactions with
owners, recorded
directly in equity
Balance as of
December 31, 2023
(Concluded)
See accompanying notes to the consolidated financial statements.
11
11
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Cash flows from operating activities:
Cash generated from operations:
Profit for the year
Adjustments
Changes in operating assets and liabilities
Interest received
Interest paid
Dividend received
Income tax paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Changes in short-term financial instruments, net
Changes in other financial assets (current), net
Decrease in other financial assets (non-current)
Collection of other receivables
Disposals of long-term financial instruments
Proceeds from disposals of property, plant and
equipment
Proceeds from disposals of intangible assets
Proceeds from disposals of investment in joint
ventures and associates
Acquisitions of subsidiaries, net of cash acquired
Increases in other financial assets (non-current)
Increases in other receivables
Purchases of long-term financial instruments
Acquisitions of property, plant and equipment
Acquisitions of intangible assets
Acquisitions of investments in joint ventures and
associates
Cash outflows from changes in consolidation
Others
Net cash used in investing activities
(Continued)
NOTES
2023
2022
(In millions of Korean Won)
36
￦
12,272,301 ￦
21,192,358
(30,365,064)
3,099,595
7,983,614
20,255,938
(13,922,657)
14,316,895
1,672,380
(4,237,818)
840,925
(3,893,842)
(2,518,760)
(1,305,170)
3,703,249
107,256
61,697
42,793
144,338
2,333
19,650
-
(862,570)
(89,586)
(73,150)
(7,070,758)
(1,780,423)
(1,522,962)
(12,787)
(13,301)
(8,649,391)
867,192
(2,695,029)
531,902
(2,393,649)
10,627,311
1,082,254
5,452,691
41,521
60,779
122,124
136,870
7,357
19,115
(89,167)
(276,728)
(80,170)
(63,612)
(4,014,969)
(1,718,733)
(1,696,266)
(197,188)
10,627
(1,203,495)
12
12
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Cash flows from financing activities:
Proceeds from short-term borrowings
Proceeds from long-term debt and debentures
Proceeds from capital contribution from non-
controlling interest
Acquisitions of subsidiaries
Repayment of short-term borrowings
Repayment of long-term debt and debentures
Repayment of lease liabilities
Purchases of treasury stocks
Dividends paid
Issue of hybrid bonds
Repayment of hybrid bonds
Others
Net cash provided by (used in) financing activities
Cash and cash equivalents included in assets held for
sale
Effect of exchange rate changes on cash and
cash equivalents
NOTES
2023
2022
(In millions of Korean Won)
￦
2,144,959
49,089,498
￦
3,388,510
30,089,495
713,380
(5,501)
(4,762,286)
(34,942,180)
(248,888)
-
(2,499,050)
159,590
(300,000)
43,849
9,393,371
341,864
-
(6,070,109)
(27,086,324)
(195,245)
(193,451)
(1,354,996)
-
-
(244,243)
(1,324,499)
(149,673)
-
226,193
(29,992)
Net increase in cash and cash equivalents
(1,698,260)
8,069,325
Cash and cash equivalents, beginning of the year
20,864,879
12,795,554
Cash and cash equivalents, end of the year
￦
19,166,619
￦
20,864,879
(Concluded)
See accompanying notes to the consolidated financial statements.
13
13
HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
1. GENERAL:
Hyundai Motor Company (the “Company” or “Parent Company”) was incorporated in December 1967, under the laws of
the Republic of Korea. The Company and its subsidiaries (the “Group”) manufacture and distribute motor vehicles and
parts, operate vehicle financing and credit card processing, and manufacture trains.
The shares of the Company have been listed on the Korea Exchange since June 1974, and the Global Depositary Receipts
issued by the Company have been listed on the London Stock Exchange and Luxembourg Stock Exchange.
As of December 31, 2023, the major shareholders of the Company are Hyundai MOBIS (45,782,023 shares, 21.64%) and
Mr. Chung, Mong Koo (11,395,859 shares, 5.39%).
(1) The Group’s consolidated subsidiaries as of December 31, 2023 are as follows.
Name of subsidiaries
HYUNDAI CAPITAL SERVICES, INC.
HYUNDAI CARD CO., LTD. (*1)
HYUNDAI ROTEM COMPANY (*2)
HYUNDAI KEFICO CORPORATION
HYUNDAI PARTECS
Hyundai NGV
MAINtrans company
Rotem SRS Co., Ltd.
S-Trans Co., Ltd.
JEONBUK HYUNDAI MOTORS FC
CO., LTD
AirPlug Inc.
42dot Inc.
42 Air, Inc
Movia Inc.
Hyundai Motor America (HMA)
Hyundai Capital America (HCA)
Hyundai Motor Manufacturing
Alabama, LLC (HMMA)
Nature of
business
Financing
˝
Manufacturing
˝
˝
Engineering
Services
˝
˝
Football club
R&D and Sales
˝
˝
Transporting
Sales
Financing
Manufacturing
Hyundai Motor Group Metaplant America,
LLC (HMGMA)
Hyundai Translead (HT)
Hyundai America Technical Center,
Inc. (HATCI)
Genesis Motor America LLC
˝
˝
R&D
Sales
Hyundai Rotem USA Corporation
Manufacturing
Hyundai Motor Investment, Inc.
HYUNDAI AUTO CANADA CORP.
(HACC)
Investment
Location
Korea
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
USA
Korea
USA
˝
˝
˝
˝
˝
˝
˝
˝
Ownership
percentage
59.72%
36.96%
33.77%
100.00%
56.00%
68.29%
100.00%
100.00%
100.00%
100.00%
99.41%
58.69%
100.00%
100.00%
100.00%
80.00%
Indirect ownership
HYUNDAI ROTEM COMPANY
100.00%
˝
˝
42dot Inc. 100.00%
˝
HMA 80.00%
100.00%
HMA 100.00%
60.00%
HMA 60.00%
100.00%
100.00%
100.00%
100.00%
100.00%
HMA 100.00%
HYUNDAI ROTEM COMPANY
100.00%
Sales
Canada
100.00%
HMA 100.00%
HYUNDAI AUTO CANADA CAPTIVE
INSURANCE INC. (HACCI)
Insurance
Hyundai Capital Canada Inc. (HCCA)
Financing
Hyundai Capital Lease Inc. (HCLI)
HK Lease Funding LP
HCCA Funding Inc.
˝
˝
˝
˝
˝
˝
˝
˝
100.00%
70.00%
100.00%
100.00%
100.00%
˝
HYUNDAI CAPITAL SERVICES,
INC. 20.00%
HCCA 100.00%
HCLI 99.99%,
HCCA Funding Inc. 0.01%
HCLI 100.00%
14
14
Hyundai Millennium (Beijing) Real Estate
Development Co., Ltd.
Real estate
development
Rotem Equipments (Beijing) Co., Ltd.
Sales
Name of subsidiaries
HCCA Funding Two Inc.
HK Retail Funding LP
HYUNDAI MOTOR INDIA LIMITED
(HMI)
HYUNDAI MOTOR INDIA
ENGINEERING PRIVATE LIMITED
(HMIE)
HYUNDAI INDIA INSURANCE
BROKING PRIVATE LIMITED
(HIIB)
HYUNDAI CAPITAL INDIA PRIVATE
LIMITED (HCI)
Hyundai Mobility Japan Co., Ltd. (HMJ)
Hyundai Mobility Japan R&D Center Co.,
Ltd. (HMJ R&D)
Hyundai Motor Business Service
Company (HMBSC)
HYUNDAI MOTOR MIDDLE EAST
AND AFRICA L.L.C
Beijing Jingxian Motor Safeguard
Service Co., Ltd. (BJMSS)
Beijing Jingxianronghua Motor Sale
Co., Ltd.
Genesis Motor Sales (Shanghai) Co.,
LTD.
KEFICO Automotive Systems(Beijing)
Co., Ltd.
Hyundai Truck & Bus (China) Co., Ltd.
(HTBC)
HYUNDAI THANH CONG VIETNAM
AUTO MANUFACTURING
CORPORATION (HTMV)(*1)
HYUNDAI THANH CONG
COMMERCIAL VEHICLE JOINT
STOCK COMPANY (HTCV)(*1)
HYUNDAI THANH CONG VIET NAM
AUTO JOINT VENTURE JOINT
STOCK COMPANY (HTV)(*1)
HYUNDAI KEFICO VIETNAM
COMPANY LIMITED
HYUNDAI MOTOR COMPANY
AUSTRALIA PTY LIMITED (HMCA)
HYUNDAI MOTOR PHILIPPINES, INC.
(HMPH)
HYUNDAI MOBILITY (THAILAND)
CO., LTD. (HMT)
PT HYUNDAI MOTOR
MANUFACTURING INDONESIA
(HMMI)
PT HYUNDAI MOTORS INDONESIA
(HMID)
PT Hyundai Solusi Mobilitas (HSM)
PT. HYUNDAI CAPITAL INDONESIA
(HCID)
Hyundai Capital Australia Pty Limited
HR MECHANICAL SERVICES
LIMITED
Hyundai Motor Manufacturing Czech
s.r.o. (HMMC)
Nature of
business
Financing
˝
Location
Canada
˝
Ownership
percentage
100.00%
100.00%
Indirect ownership
HCCA 100.00%
HCCA 99.99%,
HCCA Funding Two Inc 0.01%
Manufacturing
India
100.00%
R&D
Insurance
Financing
Sales
R&D
˝
˝
˝
Japan
˝
100.00%
HMI 100.00%
100.00%
˝
HYUNDAI CAPITAL SERVICES,
INC. 100.00%
100.00%
100.00%
100.00%
Services
Saudi Arabia
100.00%
˝
Sales
˝
˝
Manufacturing
˝
˝
Sales
˝
Manufacturing
United Arab
Emirates
100.00%
China
100.00%
˝
˝
˝
˝
˝
˝
100.00%
BJMSS 100.00%
100.00%
99.00%
CMEs 99.00%
HYUNDAI ROTEM COMPANY
100.00%
HYUNDAI KEFICO
CORPORATION 100.00%
100.00%
100.00%
100.00%
Vietnam
50.00%
˝
˝
˝
50.00%
50.00%
100.00%
HYUNDAI KEFICO
CORPORATION 100.00%
Sales
Australia
100.00%
˝
˝
Philippines
100.00%
Thailand
100.00%
Manufacturing
Indonesia
100.00%
100.00%
HMMI 0.01%
99.99%
100.00%
HMID 99.99%
HYUNDAI CAPITAL SERVICES,
INC. 100.00%
˝
HYUNDAI ROTEM COMPANY
100.00%
Sales
˝
Financing
˝
˝
˝
˝
Australia
100.00%
Services
New Zealand
100.00%
Manufacturing
Czech
100.00%
15
15
Name of subsidiaries
Hyundai Motor Czech s.r.o. (HMCZ)
Hyundai Motor Europe GmbH (HME)
Hyundai Motor Deutschland GmbH
(HMD)
Hyundai Motor Europe Technical
Center GmbH (HMETC)
Hyundai Motorsport GmbH (HMSG)
Hyundai Capital Europe GmbH.
HMCIS B.V.
Hyundai Motor Netherlands B.V.
(HMNL)
Hyundai Motor Sweden AB (HMS)
Hyundai Motor Manufacturing Rus
LLC (HMMR)
Hyundai Motor CIS Limited Liability
Company (HMCIS)
Hyundai Mobility Lab Limited Liability
Company. (HML)
HYUNDAI CAPITAL SERVICES
LIMITED LIABILITY COMPANY
Limited liability company Hyundai Truck
& Bus Rus (HTBR)
Hyundai Assan Otomotiv Sanayi Ve
Ticaret Anonim Sirketi (HAOSVT)
Hyundai EURotem Demiryolu Araclari
Sanayi ve Ticaret A.S
Hyundai Rotem Company – Hyundai
EUROTEM Demiryolu Araclari SAN.
VE TIC. A.S ORTAK GIRISIMI
Hyundai Rotem Company - Hyundai
EUROTEM Mahmutbey
Projesi ORTAK GIRISIMI
Rotem SRS Ukraine LLC.
Rotem SRS Egypt LLC.
HYUNDAI MOTOR UK LIMITED
(HMUK)
HYUNDAI MOTOR COMPANY ITALY
S.R.L. (HMCI)
HYUNDAI MOTOR ESPANA, S.L.U.
(HMES)
HYUNDAI MOTOR FRANCE (HMF)
Hyundai Motor Poland sp. z o.o. (HMP)
Nature of
business
Sales
Marketing and
Sales
Sales
R&D
Marketing
Financing
Location
Czech
Ownership
percentage
100.00%
Germany
100.00%
˝
˝
˝
˝
100.00%
100.00%
100.00%
100.00%
Holding company
Netherlands
100.00%
Sales
˝
˝
100.00%
Sweden
100.00%
Manufacturing
Russia
70.00%
Indirect ownership
HME 100.00%
HYUNDAI CAPITAL SERVICES,
INC. 100.00%
Sales
R&D
Financing
Sales
˝
˝
˝
˝
100.00%
HMCIS B.V. 100.00%
100.00%
HMCIS 99.00%, HMMR 1.00%
100.00%
Hyundai Capital Europe 100.00%
100.00%
Manufacturing
Turkiye
97.00%
˝
Sales
˝
Services
˝
Sales
˝
˝
˝
˝
˝
˝
˝
50.50%
HYUNDAI ROTEM COMPANY
50.50%
HYUNDAI ROTEM COMPANY
100.00%
65.00%,
Hyundai EURotem A.S. 35.00%
HYUNDAI ROTEM COMPANY
100.00%
85.00%,
Hyundai EURotem A.S. 15.00%
Rotem SRS Co., Ltd. 100.00%
Rotem SRS Co., Ltd. 98.00%
Ukraine
Egypt
100.00%
98.00%
UK
100.00%
Italy
100.00%
Spain
100.00%
France
Poland
100.00%
100.00%
HYUNDAI ROTEM EUROPE sp. z o.o.
Services
˝
100.00%
HYUNDAI ROTEM COMPANY
100.00%
GENESIS MOTOR EUROPE GmbH
(GME)
GENESIS MOTOR UK LIMITED
(GMUK)
GENESIS MOTOR SWITZERLAND AG
(GMCH)
GENESIS MOTOR DEUTSCHLAND
GmbH (GMD)
Hyundai Hydrogen Mobility AG (HHM)
Hyundai Hydrogen Mobility Germany
GmbH (HHMG)
HYUNDAI MOTOR DE MEXICO S DE
RL DE CV (HMM)
Hyundai de Mexico, SA DE C.V.,
(HYMEX)
HYUNDAI KEFICO MEXICO, S.
DE R.L. DE C.V.
Sales
Germany
100.00%
˝
˝
˝
˝
˝
˝
UK
100.00%
GME 100.00%
Switzerland
100.00%
Germany
100.00%
Switzerland
75.00%
˝
˝
Germany
100.00%
HHM 100.00%
Mexico
100.00%
HT 0.01%
Manufacturing
˝
˝
˝
99.99%
HT 99.99%
100.00%
HYUNDAI KEFICO
CORPORATION 100.00%
16
16
Name of subsidiaries
Hyundai Rio Vista, Inc.
HYUNDAI MOTOR BRASIL
MONTADORA DE AUTOMOVEIS
LTDA (HMB)
Hyundai Capital Brasil Servicos De
Assistencia Financeira Ltda.
Hyundai Rotem Brasil Industria E
Comercio De Trens Ltda.
HMS SERVICOS DE MOBILIDADE
LTDA.
Nature of
business
Real estate
development
Location
Ownership
percentage
Indirect ownership
USA
100.00%
HT 100.00%
Manufacturing
Brazil
100.00%
Financing
Manufacturing
˝
˝
100.00%
100.00%
HYUNDAI CAPITAL SERVICES,
INC. 100.00%
HYUNDAI ROTEM COMPANY
100.00%
Holding company
Brazil
99.99%
HMB 99.99%
China Millennium Corporations (CMEs)
˝
China Mobility Fund, L.P.
ZER01NE Accelerator
Investment Fund No.1
Autopia Sixty-fifth ~ Seventy-Seventh
Asset Securitization Specialty Company
(*1)
Zavurov First Co., Ltd. (*1)
Super Series Ninth ~ Sixteenth
Securitization Specialty Co., Ltd. (*1)
Bluewalnut Co., Ltd.
Investment
˝
Financing
˝
˝
˝
Mobility Service
˝
Manufacturing
Hyundai Connected Mobility GmbH
MOCEAN Co.,Ltd
UB1st Co., Ltd
Hyundai Cha Funding, LLC
Hyundai Lease Titling Trust
Hyundai HK Funding, LLC
Hyundai HK Funding Two, LLC
Hyundai HK Funding Three, LLC
Hyundai HK Funding Four, LLC
Hyundai ABS Funding, LLC
HK Real Properties, LLC
Hyundai Auto Lease Offering, LLC
Hyundai HK Lease, LLC
Extended Term Amortizing Program, LLC
Hyundai Asset Backed Lease, LLC
HCA Exchange, LLC
Hyundai Protection Plan, Inc.
Hyundai Protection Plan Florida, Inc.
Hyundai Capital Insurance Services, LLC
Hyundai Capital Insurance Company
Power Protect Extended Services, Inc.
Power Protect Extended Services Florida,
Inc.
Financing
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
Insurance
˝
˝
˝
˝
˝
Cayman
Islands
˝
Korea
˝
˝
˝
˝
Germany
Korea
˝
USA
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
59.60%
72.00%
99.00%
0.50%
0.00%
0.50%
100.00%
100.00%
73.28%
67.99%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
HYUNDAI CAPITAL SERVICES,
INC. 0.50%
HYUNDAI CAPITAL SERVICES,
INC. 0.00%
HYUNDAI CARD CO., LTD.
0.50%
HYUNDAI CARD CO., LTD.
100.00%
42dot Inc. 67.99%
HCA 100.00%
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
˝
(*1) The Group is considered to have substantive control over the entities by virtue of an agreement or relationship with other
investors, or relationship with structured entities.
(*2) Even though the ownership percentage is less than half, the Group has de facto control over the entity due to the relative size of
the voting rights held and the degree of share dispersion of other voting rights holders.
17
17
(2) Summarized financial position and results of operations of major consolidated subsidiaries as of and for the year
ended December 31, 2023 are as follows.
Name of subsidiaries
Assets
Liabilities
Sales
Profit (loss)
for the period
(In millions of Korean Won)
33,565,942 ￦
HYUNDAI CAPITAL SERVICES, INC. (*) ￦ 39,602,030 ￦
HYUNDAI CARD CO., LTD. (*)
HYUNDAI ROTEM COMPANY (*)
HYUNDAI KEFICO CORPORATION (*)
HCA(*)
HMA
HCCA(*)
HMI(*)
HMMC
HMMA
HAOSVT
HACC(*)
HMMI
HMB
HME(*)
23,937,240
5,241,485
2,135,064
82,158,423
14,506,566
8,665,898
5,000,466
4,920,777
4,893,938
2,025,990
1,994,722
1,776,410
1,611,763
1,600,476
20,106,768
3,954,509
1,130,238
74,184,645
7,565,450
8,075,579
1,922,363
1,843,845
3,606,681
974,573
1,126,555
1,130,619
915,285
1,512,577
4,873,315 ￦
3,224,815
3,587,382
2,519,796
14,025,729
40,823,810
994,577
10,634,619
11,146,656
13,275,365
4,723,194
4,870,333
1,928,508
3,617,488
17,657,351
459,888
265,106
156,779
41,047
459,062
2,778,222
47,190
921,119
795,558
236,265
230,654
139,070
81,740
52,054
13,903
(*) Based on the subsidiary’s consolidated financial statements
Summarized financial position and results of operations of major consolidated subsidiaries as of and for the year
ended December 31, 2022 are as follows.
Name of subsidiaries
Assets
Liabilities
Sales
Profit (loss)
for the period
(In millions of Korean Won)
33,017,783 ￦
HYUNDAI CAPITAL SERVICES, INC. (*) ￦ 38,647,454 ￦
HYUNDAI CARD CO., LTD. (*)
HYUNDAI ROTEM COMPANY (*)
HYUNDAI KEFICO CORPORATION (*)
HCA (*)
HMA
HCCA (*)
HMMA
HMI (*)
HMMC
HME (*)
HACC (*)
HMB
HAOSVT
HMMI
25,102,360
4,823,870
2,118,244
65,174,141
13,534,367
6,146,352
4,974,559
4,932,560
4,554,767
2,604,267
1,811,550
1,801,019
1,733,527
1,717,566
21,256,797
3,332,399
1,151,710
57,784,155
8,484,603
5,611,754
3,863,001
2,071,012
1,724,596
2,528,135
1,003,562
1,195,946
867,053
1,169,855
4,436,122 ￦
3,015,376
3,163,344
2,255,354
12,392,502
33,684,033
819,584
11,399,961
9,230,238
9,291,193
14,302,787
4,146,159
3,314,994
3,625,354
1,484,674
437,087
253,957
194,534
86,781
416,542
2,549,423
82,115
(807,997)
710,908
680,064
12,792
102,258
97,250
288,338
(36,494)
(*) Based on the subsidiary’s consolidated financial statements
(3) The financial statements of all subsidiaries used in the preparation of the consolidated financial statements
are prepared for the same reporting periods as the Company’s.
18
18
(4) Summarized cash flows of non-wholly owned subsidiaries that have material non-controlling interests to the
Group and subsidiaries of finance segment for the year ended December 31, 2023 are as follows.
Description
Provided by (used in)
operating activities
Provided by (used in)
investing activities
Provided by (used in)
financing activities
Effect of exchange rate
changes on cash and
cash equivalent
Net increase (decrease) in
cash and cash
equivalents
Beginning balance of
cash and cash
equivalents
Ending balance of cash
and cash equivalents
HYUNDAI
CAPITAL
SERVICES, INC.
HYUNDAI CARD
CO., LTD.
HCA
HCCA
HYUNDAI
ROTEM
COMPANY
(In millions of Korean Won)
￦
(1,240,514) ￦
617,367 ￦
(13,789,397) ￦ (1,888,547) ￦
734,192
(289,957)
(309,410)
(131,584)
(4,046)
(270,412)
594,005
(1,528,100)
14,078,209
1,850,713
(576,282)
-
-
7,726
3,374
2,635
(936,466)
(1,220,143)
164,954
(38,506)
(109,867)
1,747,627
2,269,390
553,623
87,794
506,008
￦
811,161 ￦
1,049,247 ￦
718,577 ￦
49,288 ￦
396,141
Summarized cash flows of non-wholly owned subsidiaries that had material non-controlling interests to the Group
and subsidiaries of finance segment for the year ended December 31, 2022 are as follows.
Description
Provided by (used in)
operating activities
Provided by (used in)
investing activities
Provided by (used in)
financing activities
Effect of exchange rate
changes on cash and
cash equivalent
Net increase (decrease) in
cash and cash
equivalents
Beginning balance of
cash and cash
equivalents
Ending balance of cash
and cash equivalents
HYUNDAI
CAPITAL
SERVICES, INC.
HYUNDAI CARD
CO., LTD.
HCA
HCCA
HYUNDAI
ROTEM
COMPANY
(In millions of Korean Won)
￦
(1,111,074) ￦
(618,906) ￦
(254,261) ￦ (1,257,295) ￦
716,229
(223,067)
(70,359)
28,172
(1,741)
(429,045)
2,572,598
2,379,211
389,229
1,274,970
(97,120)
-
-
22,292
(542)
(3,784)
1,238,457
1,689,946
185,432
15,392
186,280
509,170
579,444
368,191
72,402
319,728
￦
1,747,627 ￦
2,269,390 ￦
553,623 ￦
87,794 ￦
506,008
19
19
(5) Details of non-wholly owned subsidiaries of the Company that have material non-controlling interests as of
and for the year ended December 31, 2023 are as follows.
Description
Ownership percentage of non-controlling
interests
Accumulated non-controlling interests
Profit attributable to non-controlling
interests
Dividends paid to non-controlling interests
HYUNDAI
CAPITAL
SERVICES, INC.
HYUNDAI CARD
CO., LTD.
(In millions of Korean Won)
HYUNDAI
ROTEM
COMPANY
￦
40.28%
2,425,670 ￦
63.04%
2,490,730 ￦
187,078
-
142,315
38,442
66.23%
942,579
98,254
-
Details of non-wholly owned subsidiaries of the Company that had material non-controlling interests as of and for
the year ended December 31, 2022 are as follows.
Description
Ownership percentage of non-controlling
interests
Accumulated non-controlling interests
Profit attributable to non-controlling
interests
Dividends paid to non-controlling interests
HYUNDAI
CAPITAL
SERVICES, INC.
HYUNDAI CARD
CO., LTD.
(In millions of Korean Won)
HYUNDAI
ROTEM
COMPANY
￦
40.32%
2,263,283 ￦
63.04%
2,511,596 ￦
171,675
-
160,104
56,753
66.23%
845,085
127,747
-
(6) Financial support provided to consolidated structured entities
As of December 31, 2023, HYUNDAI CARD CO., LTD. and HYUNDAI CAPITAL SERVICES, INC., subsidiaries
of the Company, have agreements that provide counterparties with rights of recourse in the event of default on the
derivatives relating to asset-backed securities issued by consolidated structured entities, Autopia Sixty-Eighth,
Sixty-Ninth and Seventy-sixth Asset Securitization Specialty Company, Super Series Ninth, Twelfth, Fourteenth
and Fifteenth Securitization Specialty Co., Ltd..
(7) Nature and risks associated with interests in unconsolidated structured entities
1) Nature of interests in unconsolidated structured entities of the Group as of December 31, 2023 is as follows.
Description
Purpose
Nature of business
Method of
funding
Total assets (*)
Asset
securitization SPC
Investment fund
Fund raising
through asset-
securitization
Investment trust and
others
Structured Finance
Fund raising
through project
financing
(In millions of Korean Won)
Fund
collection
Fund management
and operation,
distribution of
operating profit
and others
Project financing
for construction
project and
ship investment
Asset Backed
Securities and
others
Beneficiary
(Investment)
certificates
Project financing
and others
￦
847,155
7,288,926
34,569,749
(*) The financial information of unconsolidated structured entity includes unaudited amounts.
20
20
Nature of interests in unconsolidated structured entities of the Group as of December 31, 2022 is as follows.
Description
Purpose
Nature of business
Method of
funding
Total assets (*)
Asset
securitization SPC
Fund raising
through asset-
securitization
Investment fund
Investment trust and
others
Structured Finance
Fund raising
through project
financing
(In millions of Korean Won)
Fund
collection
Fund management
and operation,
distribution of
operating profit
and others
Project financing
for construction
project and
ship investment
Asset Backed
Securities and
others
Beneficiary
(Investment)
certificates
Project financing
and others
￦
711,575
6,877,841
24,128,653
(*) The financial information of unconsolidated structured entity includes unaudited amounts.
2) Risks associated with interests in unconsolidated structured entities of the Group as of December 31, 2023 are as
follows.
Description
Book value in the
structured entity
Financial support provided
to the structured entity
Purpose
Method
(In millions of Korean Won)
Maximum amount
of exposure to loss
of the structured
entity
Asset
securitization SPC
Investment fund
Structured Finance
￦
69,754
obligations
Loan
Loan agreement
(Credit line)
￦
Beneficiary
Invest
304,074
certificates,
Investment trust
agreement
1,695,327
Loan
obligations
Loan agreement
(Credit line)
92,000
304,074
2,356,936
Risks associated with interests in unconsolidated structured entities of the Group as of December 31, 2022 are as
follows.
Description
Book value in the
structured entity
Financial support provided
to the structured entity
Method
Purpose
(In millions of Korean Won)
Maximum amount
of exposure to loss
of the structured
entity
Asset
securitization SPC
Investment fund
Structured Finance
￦
70,208
obligations
Loan
Loan agreement
(Credit line)
￦
Beneficiary
Invest
238,424
certificates,
Investment trust
agreement
1,585,070
Loan
obligations
Loan agreement
(Credit line)
77,000
238,424
2,089,900
(8) Significant restrictions on the subsidiaries
As of December 31, 2023, HYUNDAI CARD CO., LTD., a subsidiary of the Company, is subject to significant
restrictions that require it to obtain consent from a nominated outside director recommended by non-controlling
shareholders in the events of acquiring a company, entering into new business, providing guarantees, making
investments in stocks or contracts beyond a certain amount and others.
21
21
(9) Changes in consolidated subsidiaries
Subsidiaries newly included in or excluded from consolidation during the year ended December 31, 2023 are as follows.
Changes
Included
˝
˝
˝
˝
˝
˝
˝
˝
˝
Excluded
˝
˝
˝
˝
˝
Name of subsidiaries
Autopia Seventy-Sixth Asset Securitization Specialty Company
Autopia Seventy-Seventh Asset Securitization Specialty Company
Super Series Fifteenth Securitization Specialty Co., Ltd.
Super Series Sixteenth Securitization Specialty Co., Ltd.
S-Trans Co., Ltd.
HYUNDAI ROTEM EUROPE sp. z o.o.
Hyundai Motor Business Service Company
Hyundai Motor Sweden AB
Hyundai Connected Mobility GmbH
HYUNDAI MOTOR MIDDLE EAST AND AFRICA L.L.C
UB1st Co., Ltd
Super Series Sixth Securitization Specialty Co., Ltd.
Super Series Seventh Securitization Specialty Co., Ltd.
Super Series Eighth Securitization Specialty Co., Ltd.
KEFICO Automotive Systems(Chongqing) Co., Ltd.
SMART Alabama, LLC
Stamped Metal American Research Technology, Inc.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES:
(1) Basis of consolidated financial statements preparation
Description
Establishment
˝
˝
˝
˝
˝
˝
˝
˝
˝
Acquisition
Liquidation
˝
˝
˝
˝
˝
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
as adopted by the Republic of Korea (“KIFRS”), as prescribed in the Act on External Audit of Stock Companies, Etc in
the Republic of Korea.
The material accounting policies used for the preparation of the consolidated financial statements are summarized below.
These material accounting policies are consistent with those applied to the consolidated financial statements as of and for
the year ended December 31, 2022, except for the new or amended accounting standards and interpretations described
below.
1) New and amended standards that have been applied from the year beginning on January 1, 2023 are as follows.
The Group applied KIFRS 1117 Insurance Contracts, Definition of Accounting Estimates (Amendments to KIFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors), Disclosure of Accounting Policies (Amendments to
KIFRS 1001 Presentation of Financial Statements), Deferred Tax related to Assets and Liabilities arising from a Single
Transaction, International Tax Reform-Pillar Two Model Rules (Amendments to KIFRS 1012 Income Taxes), Disclosure
of gains (losses) on valuation of financial liabilities in accordance with exercise price refixing (Amendments to KIFRS
1001 Presentation of Financial Statements), for the first time on January 1, 2023. These standards and other new
accounting standards effective from January 1, 2023 do not have a material impact on the Group's consolidated financial
statements.
2) A number of new standards are effective for annual periods beginning on or after January 1, 2023 and earlier application
is permitted; however, the Group has not early adopted them in preparing these consolidated financial statements.
The Group is currently evaluating the effect of the following new or amended standards and interpretations, if any, to the
consolidated financial statements, however, those standards are not expected to have a material impact on the Group’s
consolidated financial statements.
- Lease liabilities arising from sale and leaseback transactions (KIFRS 1116 Leases)
- Classification of Liabilities as Current or Non-current (KIFRS 1001 Presentation of Financial Statements)
- Supplier Finance Arrangements (KIFRS 1007 Statement of Cash Flows, KIFRS 1107 Financial Instruments:
22
22
Disclosures)
- Disclosure of virtual assets (KIFRS 1001Presentation of Financial Statements)
The consolidated financial statements were approved by the Board of Directors on January 25, 2024 and are
expected to be submitted for the Company's annual general meeting of shareholders.
(2) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except as otherwise stated in the
accounting policies below. Historical cost is usually measured at the fair value of the consideration given to acquire the
assets.
(3) Basis of consolidations
The consolidated financial statements incorporate the financial statements of the Company and entities (including
structured entities) controlled by the Company (or its subsidiaries). Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
Even if the Group has less than a majority of the voting rights of an investee, it has power over the investee when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The
Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee
are sufficient to give it power, including:
the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
potential voting rights held by the Group, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to
direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders’ meetings.
Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statements
of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into
line with those used by the Group. All intragroup transactions, balances, income and expenses are eliminated in full on
consolidation. Non-controlling interests are presented in the consolidated statement of financial position within equity,
separately from the equity of the owners of the Group. The carrying amount of non-controlling interests consists of the
amount of those non-controlling interests at the initial recognition and the changes in shares of the non-controlling
interests in equity since the date of the acquisition. Total comprehensive income is attributed to the owners of the Group
and to the non-controlling interests even if the non-controlling interest has a deficit balance.
Changes in the Group's ownership interests in subsidiaries, without a loss of control, are accounted for as equity
transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the
changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed
to owners of the Group.
23
23
When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the 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 goodwill), liabilities of the subsidiary and any non-controlling interests. The
amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the
Group had directly disposed of the relevant assets (i.e., reclassified to profit or loss or transferred directly to retained
earnings as specified by applicable KIFRS). The fair value of any investment retained in the former subsidiary at the date
when control is lost is regarded as the fair value on initial recognition for subsequent accounting under KIFRS 1109
Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment
in an associate or a joint venture.
(4) Business combination
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets
transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests
issued by the Group in exchange for control of the acquiree. The consideration includes any asset or liability resulting
from a contingent consideration arrangement and is measured at fair value.
Acquisition-related costs are recognized in profit or loss as incurred. When a business combination is achieved in stages,
the Group's previously held equity interest in the acquiree is remeasured at its fair value at the acquisition date (i.e., the
date when the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Prior to the
acquisition date, the amount resulting from changes in the value of its equity interest in the acquiree that have previously
been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be
appropriate if that interest were directly disposed of.
(5) Revenue recognition
In accordance with KIFRS 1115, all types of contracts recognize revenues by the 5-step revenue recognition model (1)
identification of contract → (2) identification of performance obligations → (3) calculation of transaction price → (4)
allocation of transaction price to performance obligations → (5) recognition of revenue when performance obligation is
satisfied.
1) Identification of performance obligations
The Group operates businesses such as the manufacture and sale of automobiles and auto parts. In the automobile sales
contracts with customers, services other than automobile sales are separately identified as performance obligations.
2) Performance obligations satisfied at a point in time
Revenue is recognized when the performance obligations under the terms of a contract with the Group’s customer are
satisfied, which generally occurs with the transfer of control of goods or services.
3) Performance obligations satisfied over time
In assessing whether the control over goods or services is transferred over time, the Group evaluates whether the customer
simultaneously obtains and consumes the benefits provided by the Group’s performance, whether the assets are controlled
by the customer, and whether the assets created by the Group have no substitute purpose, and whether the Group is entitled
to reimbursement of costs incurred to date, including a reasonable margin.
4) Allocation of transaction price
The Group allocates the transaction price to each of the performance obligations identified in a single contract in
proportion to its stand-alone selling price. When the stand-alone selling price is not directly observable, the Group
estimates the stand-alone selling price using the adjusted market assessment approach, or the expected cost plus a margin
approach.
24
24
5) Variable consideration
The Group estimates the amount of consideration it will be entitled to receive using the method (either the expected value
method or the most likely amount method) that provides the most accurate prediction.
Variable consideration is included in the transaction price only to the extent that it is highly probable that a significant
reversal in the cumulative amount of revenue recognized will not occur in future periods.
6) Significant financing element
If the period between the transfer of the goods or services promised to the customer and the payment from the customer
is within one year, the Group does not adjust the promised amount of consideration for the effects of a significant financing
component, as a practical expedient.
7) Construction contracts
Where the outcome of a construction contract can be estimated reliably, the contract revenue and contract costs associated
with the construction contract are recognized as revenue and expenses, respectively, by reference to the stage of
completion of the contract activity at the end of reporting period.
The percentage of completion of a contract activity is reliably measured based on the proportion of contract costs incurred
for work performed to date relative to the estimated total contract costs, by surveys of work performed or by completion
of a physical proportion of the contract work. Variations in contract work, claim and incentive payments are included to
the extent that the amount can be measured reliably and its receipt is considered probable. Where the outcome of a
construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract costs incurred
that it is probable will be recoverable. Contract costs are recognized as expenses in the period 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 currency translation
The individual financial statements of each entity in the Group are prepared and presented in the currency of the
primary economic environment in which the entity operates (its functional currency).
In preparing the financial statements of the individual entities, transactions occurring in currencies other than their
functional currency (foreign currencies) are recorded using the exchange rate on the dates of the transactions. At the end
of each reporting period, monetary items denominated in foreign currencies are translated using the exchange rate at the
end of the reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange
differences resulting from settlement of assets or liabilities and translation of monetary items denominated in foreign
currencies are recognized in profit or loss in the period in which they arise except for some exceptions.
Foreign exchange gains or losses are classified as finance income (expenses) or other income (expenses) by the nature of
the transaction or event.
For the purpose of presenting the consolidated financial statements, assets and liabilities in the Group’s foreign operations
are translated into Won, using the exchange rates at the end of reporting period. Income and expense items are translated
at the average exchange rate for the period, unless the exchange rate during the period has significantly fluctuated, in
which case the exchange rates at the dates of the transactions are used. The exchange differences arising, if any, are
recognized in equity as other comprehensive income. Upon the disposal of a foreign operation, the cumulative amount
of the exchange differences relating to that foreign operation is reclassified from equity to profit or loss when the gain or
loss on disposal is recognized. Any goodwill arising on the acquisition of a foreign operation and any fair value
adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated
as assets and liabilities of the foreign operation and translated at the exchange rate at the end of reporting period.
25
25
(7) Financial Assets
The Group classifies financial assets as financial assets measured at fair value through profit or loss, financial assets
measured at amortized cost or financial assets measured at fair value through other comprehensive income according to
the terms and purpose of acquisition. The Group determines the classification of a financial asset at initial recognition.
All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending
on the classification of the financial assets.
1) Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortized cost:
The financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive
income (FVOCI):
The financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
By default, all other financial assets are measured subsequently at fair value through profit or loss (FVPL).
Despite the foregoing, the Group may make the following irrevocable election / designation at initial recognition of a
financial asset:
The Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other
comprehensive income if certain criteria are met; and
The Group may irrevocably designate a debt investment that meets the amortized cost or FVOCI criteria as
measured at FVPL if doing so eliminates or significantly reduces an accounting mismatch.
1-1) Amortization cost and effective interest rate method
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest
income over the relevant period. The amortized cost of a financial asset is the amount at which the financial asset is
measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective
interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance.
The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any loss
allowance. Interest income is recognized using the effective interest method for debt instruments measured subsequently
at amortized cost and at FVOCI.
1-2) Debt instruments classified as at FVOCI
Corporate bonds are initially measured at fair value plus transaction costs. Subsequently, changes in the carrying amount
of these corporate bonds as a result of foreign exchange gains and losses, impairment gains or losses, and interest income
calculated using the effective interest method are recognized in profit or loss. The amounts that are recognized in profit
or loss are the same as the amounts that would have been recognized in profit or loss if these corporate bonds had been
measured at amortized cost. All other changes in the carrying amount of these corporate bonds are recognized in other
comprehensive income and accumulated in investments revaluation reserve. When these corporate bonds are
derecognized, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to
profit or loss.
1-3) Equity instruments designated as at FVOCI
26
26
On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate
investments in equity instruments as at FVOCI. Designation at FVOCI is not permitted if the equity investment is held
for trading or if it is contingent consideration recognized by an acquirer in a business combination.
Investments in equity instruments at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they
are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive
income and accumulated in the investments revaluation reserve. The cumulative gain or loss will not be reclassified to
profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings.
1-4) Financial assets measured at FVPL
Financial assets that do not meet the criteria for being measured at amortized cost or FVOCI are measured at FVPL. Gains
or losses arising from changes in the fair value of FVPL, dividends and interest income from the financial assets are
recognized in profit or loss.
2) Foreign exchange gain / loss
The carrying amount of a financial asset designated as a foreign currency is determined in foreign currencies and is
translated at the spot exchange rate at the end of the reporting period.
(8) Impairment of financial assets
The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured
at amortized cost or at FVOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee
contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument.
The Group always recognizes lifetime expected credit losses (ECL) for trade receivables, contract assets and lease
receivables. The ECLs on these financial assets are estimated using a provision matrix based on the Group’s historical
credit loss experience and valuation of individual assets, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of forecast on present and future conditions reflecting time value of money where
appropriate.
For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in
credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly
since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-
month ECLs.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life
of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from
default events on a financial instrument that are possible within 12 months after the reporting date.
1) Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the
Group compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default
occurring on the financial instrument at the date of initial recognition.
In particular, the following information is taken into account when assessing whether credit risk has increased
significantly since initial recognition:
an actual or expected significant deterioration in the financial instrument’s external (if available) or internal
credit rating;
other significant increases in credit risk.
2) Definition of default
The Group believes that, based on past experience, if the debtor violates the terms of the contract, it is considered to
constitute a default event for internal credit risk management purposes.
27
27
3) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following
observable data:
(a) significant financial difficulty of the issuer or the borrower;
(b) a breach of contract, such as a default or past due event as defined by the Group’s internal policy.
4) Measurements and recognition of expected credit losses
The measurement of ECLs is a function of the probability of default, loss given default (i.e. the magnitude of the loss if
there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based
on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial
assets, this is represented by the assets’ gross carrying amount at the reporting date.
For financial assets, the ECLs are estimated as the difference between all contractual cash flows that are due to the Group
in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective
interest rate.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECLs in the
previous reporting period, but determines at the current reporting date that the conditions for lifetime ECLs are no longer
met, the Group measures the loss allowance at an amount equal to 12-month ECLs at the current reporting date, except
for financial assets for which a simplified approach is used.
The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding
adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are
measured at FVOCI, for which the loss allowance is recognized in other comprehensive income and accumulated in the
investment revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial
position.
(9) Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the
Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
On derecognition of a financial asset measured at amortized cost, the difference between the asset’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 in a debt instrument classified as at FVOCI, the cumulative gain or loss previously accumulated in the
investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity
instrument which the Group has elected on initial recognition to measure at FVOCI, the cumulative gain or loss previously
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 realizable value. Inventory cost, including the fixed and variable
manufacturing overhead cost, is calculated, using the moving average method, except for the cost for inventory in transit,
which is determined by the specific identification method.
(11) Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence, but not a joint venture or a subsidiary. Significant
influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or
joint control over those policies.
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A joint venture is a joint arrangement, whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
The investment in an associate or a joint venture is initially recognized at cost and accounted for using the equity method.
Under the equity method, an investment in an associate or a joint venture is initially recognized in the consolidated
statement of financial position at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other
comprehensive income of the associate or the joint venture.
When the Group's share of losses of an associate or a joint venture exceeds the Group's interest in that associate or joint
venture (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate
or the joint venture), the Group discontinues recognizing its share of further losses. Additional losses are recognized only
to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or
the joint venture.
Investment in associate or joint venture is accounted for using the equity method from the date that the investee becomes
the associate or joint venture. Any excess of the cost of acquisition over the Group's share of the net fair value of the
identifiable assets, liabilities and contingent liabilities of an associate or a joint venture recognized at the date of
acquisition is recognized as goodwill, which is included within the carrying amount of the investment.
Any excess of the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities over
the cost of acquisition, after reassessment, is recognized immediately in profit or loss.
The requirements of KIFRS 1028 are applied to determine whether it is necessary to recognize any impairment loss with
respect to the Group’s investment in an associate or a joint venture. When there is any indication of impairment, the entire
carrying amount of the investment (including goodwill) is tested for impairment in accordance with KIFRS 1036 as a
single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its
carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the
carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with KIFRS 1036
to the extent that the recoverable amount of the investment subsequently increases.
Upon disposal of an associate or a joint venture that results in the Group losing significant influence over that associate
or joint venture, any retained investment is measured at fair value at that date and the fair value is regarded as its fair
value on initial recognition as a financial asset in accordance with KIFRS 1109. The difference between the previous
carrying amount of the associate or joint venture attributable to the retained interest and its fair value is included in the
determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all
amounts previously recognized in other comprehensive income in relation to that associate or joint venture on the same
basis it would be required if that associate or joint venture had directly disposed of the related assets or liabilities.
Therefore, if a gain or loss previously recognized in other comprehensive income by that associate or joint venture would
be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss
from equity to profit or loss (as reclassification adjustment) when it loses significant influence over that associate or joint
venture. When the Group reduces its ownership interest in an associate or a joint venture, but the Group continues to use
the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been
recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be
reclassified to profit or loss on the disposal of the related assets or liabilities. In addition, the Group applies KIFRS 1105
to a portion of investment in an associate or a joint venture that meets the criteria to be classified as held for sale.
The Group continues to use the equity method when an investment in an associate becomes an investment in a joint
venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair
value upon such changes in ownership interests.
Unrealized gains from transactions between the Group and its associates or joint ventures are eliminated up to the shares
in associate (joint venture) stocks. Unrealized losses are also eliminated, unless evidence of impairment in assets
transferred is produced. If the accounting policy of associates or joint ventures differs from the Group, financial
statements are adjusted accordingly before applying equity method of accounting.
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(12) Property, plant and equipment
Property, plant and equipment is recognized if, and only if it is probable that future economic benefits associated with the
asset will flow to the Group, and the cost of the asset can be measured reliably. After the initial recognition, property,
plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. The cost includes
any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and
restoring the site on which it is located. In addition, in case the recognition criteria are met, the subsequent costs will be
added to the carrying amount of the asset or recognized as a separate asset, and the carrying amount of what was replaced
is derecognized.
Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. The
representative useful lives are as follows.
Representative useful lives (years)
Buildings and structures
Machinery and equipment
Vehicles
Dies, mold and tools
Office equipment
Other
12 – 50
6 – 15
6 – 15
4 – 6
3 – 15
2 – 20
The Group reviews the depreciation method, the estimated useful lives and residual values of property, plant and
equipment at the end of each annual reporting period. If expectations differ from previous estimates, the changes are
accounted for as a change in accounting estimate.
(13) Investment properties
Investment properties are property held to earn rentals or for capital appreciation or both. Investment properties are
measured initially at its cost and transaction costs are included in the initial measurement. After initial recognition, the
book value of investment properties is presented at the cost less accumulated depreciation and accumulated impairment
losses.
Subsequent costs are recognized as the carrying amount of the asset when, and only when it is probable that future
economic benefits associated with the asset will flow to the Group, and the cost of the asset can be measured reliably, or
recognized as a separate asset if appropriate. The carrying amount of what was replaced is derecognized.
Land is not depreciated, and other investment properties are depreciated using the straight-line method over the period
from 20 to 50 years. The Group reviews the depreciation method, the estimated useful lives and residual values at the
end of each annual reporting period. If expectations differ from previous estimates, the changes are accounted for as a
change in accounting estimate.
(14) Intangible assets
1) Goodwill
Goodwill arising from a business combination is recognized as an asset at the time of obtaining control (the acquisition
date). Goodwill is measured as the excess of the aggregate of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the acquisition-date fair value of the Group’s previously held equity interest in the
acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed
exceeds the aggregate of the consideration transferred, the amount of any non-controlling interest in the acquiree, and the
acquisition-date fair value of the Group’s previously held equity interest in the acquiree, the excess is recognized
immediately in profit or loss as a bargain purchase gain.
Goodwill is not amortized, but tested for impairment at least annually. For purposes of impairment tests, goodwill is
allocated to those cash-generating units (“CGU”) of the Group expected to have synergies from the business combination.
CGU that goodwill has been allocated is tested for impairment every year or when an event occurs that indicates
impairment.
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If the recoverable amount of a CGU is less than its carrying amount, the impairment will first decrease the goodwill
allocated to that CGU and the remaining impairment will be allocated among other assets relative to its carrying value.
Impairment recognized for goodwill may not be reversed. When disposing a subsidiary, related goodwill will be included
in gain or loss from disposal.
2) Development costs
The expenditure on research is recognized as an expense when it is incurred. The expenditure on development is
recognized as an intangible asset, and amortization is computed using the straight-line method based on the estimated
useful lives of the assets since the asset is available for use or sale.
Research and development activities are conducted in phases of preceding research, development approval, product
development and mass production. The Group generally recognizes intangible assets as development activities after the
development approval phases which product specification, release schedule, and sales plan are established. Expenditure
incurred at the previous phase is recognized as an expense as it is considered as research activities when it is incurred.
3)
Intangible assets acquired separately
Intangible assets are measured initially at cost, and are subsequently measured at cost less accumulated amortization and
accumulated impairment losses.
Intangible assets are amortized by the straight-line method based on estimated useful lives from the date of availability.
The Group reviews the estimated useful life and amortization method at the end of each annual reporting period. If
expectations differ from previous estimates, the changes are accounted for as a change in accounting estimate. Intangible
assets assessed as having indefinite useful life such as club membership are subjected to impairment test at least once a
year without amortization.
The representative useful lives are as follows.
Development costs
Industrial property rights
Software
Other
Representative useful lives (years)
3, 7
5 – 10
3 – 7
5 – 40
(15) Impairment of non-financial assets
The Group assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If
any such indication exists, the Group estimates the recoverable amount of the asset to determine the extent of the
impairment loss. Recoverable amount is the higher of fair value less costs to sell and value in use. If the cash inflows of
an individual asset are largely independent from other assets or group of assets, the recoverable amount is measured for
that individual asset; otherwise, it is measured for the cash generating unit (CGU) to which the asset belongs. An
impairment loss in respect of goodwill is not reversed. For other assets, impairment loss is reversed if the recoverable
amount increases in subsequent years, but only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
Intangible assets with indefinite useful lives or intangible assets not yet available for use are not amortized, but tested for
impairment annually.
(16) Non-current assets classified as held for sale
The Group classifies a non-current asset (or disposal group) as held for sale, if its carrying amount will be recovered
principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal
group) must be available for immediate sale in its present condition subject only to terms that are usual and customary
for sales of such assets (or disposal groups) and its sale must be highly probable. The management must be committed
to a plan to sell the asset (or disposal group), and the sale should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
Non-current assets (or disposal group) classified as held for sale are measured at the lower of their carrying amount and
fair value, less costs to sell.
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The Group classified unit of operating division for which operating activities have been completed or classified as unit
held for sale in case of major business division or sales region as discontinued income, excluding profit or loss from
discontinued operations after tax from result of continued operations and represents single amounts on income statements.
Other details for discontinued operation are represented on Note 8, and other Notes includes continued operating amounts
unless otherwise stated. If there is a discontinued operation, the profit or loss related to the discontinued operation is
classified as profit or loss from discontinued operation, and the comparative consolidated statement of income is restated
by presenting profit or loss from the discontinued operation separately.
(17) Lease
At contract inception, the Group assesses whether a contract is or contains a lease. A contract is, or contains, a lease if
the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.
When assessing whether the contract conveys a right to control the use of an identified asset, definition of a lease under
KIFRS 1116 has been applied.
1) As a lessee
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-alone prices. However, for leases of properties in which it is a lessee, the Group has elected not to
separate non-lease components and will instead account for the lease and non-lease components as a single lease
component.
The Group recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.
The right-of use asset is subsequently depreciated using the straight-line method from the commencement date to the end
of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or
the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset
will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property
and equipment. In addition, the right-of use asset is periodically reduced by impairment losses, if any, and adjusted for
certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
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 recognizes the lease payments associated with these leases as an expense on a straight-line basis
over the lease term.
2) As a lessor
The accounting policies applicable in the same period to the Group as a lessor are not different from those under KIFRS
1116. When the Group acted as a lessor, it determined at lease inception whether each lease was a finance lease or an
operating lease. To classify each lease, the Group made an overall assessment of whether the lease transferred
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this was the case, then the
lease was a finance lease; if not, then it was an operating lease.
Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group’s net investment
in the leases. Finance lease interest income is allocated to accounting periods so as to reflect an effective interest rate on
the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized on a
straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the carrying amount of investments in operating leases and recognized as
expense on a straight-line basis over the lease term.
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(18) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized to
the cost of those assets, until they are ready for their intended use or sale. A qualifying asset is an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are
incurred.
(19) Employee benefits
1) Short-term employee benefits
Short-term employee benefits are settled within 12 months from the end of the reporting period in which the employee
provided the relevant service. They are recognized in profit or loss when the service is rendered and measured at the
undiscounted amount of benefits expected to be paid in exchange for that service.
2) Retirement benefit plans
The retirement benefit obligation recognized in the consolidated statements of financial position represents the present
value of the defined benefit obligation, less the fair value of plan assets. Defined benefit obligations are calculated
annually by an actuary using the Projected Unit Credit Method.
The present value of the defined benefit obligations is measured by discounting estimated future cash outflows by the
interest rate of high-quality corporate bonds, with similar maturity as the expected retirement benefit payment date. In
countries where there is no deep market in such bonds, the market yields at the end of the reporting period on government
bonds are used.
The remeasurements of the net defined benefit liabilities (assets) comprising actuarial gain or loss from changes in
actuarial assumptions or differences between actuarial assumptions and actual results, the effect of the changes to the
asset ceiling and return on plan assets, excluding amounts included in net interest on the net defined benefit liabilities
(assets), are recognized in other comprehensive income of the consolidated statements of comprehensive income, which
is immediately recognized as retained earnings. Those recognized in retained earnings will not be reclassified in profit
or loss. Past service costs are recognized in profit and loss when the plan amendment occurs, and net interest is calculated
by applying the discount rate determined at the beginning of the annual reporting period to the net defined benefit
liabilities (assets). Defined benefit costs are composed of service cost (including current service cost, past service cost,
as well as gains and losses on settlements), net interest expense (income), and remeasurements.
The retirement benefit obligation recognized in the consolidated statements of financial position represents the actual
deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present
value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the
plans.
Contributions to defined contribution retirement benefit plans are recognized as expenses when employees provide
services eligible for payment.
3) Other long-term employee benefits
Other long-term employee benefits, which are not paid within 12 months from the end of the reporting period in which
the employee provided the relevant service, discounts future benefits earned in return for service provided in the current
and past periods to present values. Liabilities are determined after discounting estimated future cash outflows by the
interest rate of high-quality corporate bonds, with similar maturity as the expected other long-term employee benefits
date. And service cost, net interest and remeasurement component are recognized as profit or loss. Also, these liabilities
are evaluated annually by independent, qualified actuaries.
(20) Provisions
A provision is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the
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consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. A provision is measured using the present value of the cash flows estimated to
settle the present obligation. The increase in provision due to passage of time is recognized as interest expense.
The Group recognizes provisions for costs expected to be incurred in the future for the repair of regular parts within the
warranty period based on historical experience and compensation for accidents caused by defects in the exported products
or parts of the product when such amounts are probable of payment. Also, the Group recognizes provisions for the
probable losses of unused loan commitment, construction contracts, pre-contract sale or service contract due to legal or
constructive obligations.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.
(21) Taxation
Income tax expense is composed of current and deferred tax.
1) Current tax
The current tax is computed based on the taxable profit for the current year. The taxable profit differs from the profit
before income tax as reported in the consolidated statements of income because it excludes items of income or expense
that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s
current tax liability is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or
received that reflects uncertainty related to income taxes, if any.
2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognized for all taxable temporary differences. Deferred tax assets shall be generally recognized
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities shall not be recognized if
the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and
associates and interests in joint ventures, except when the Group is able to control the timing of the reversal of the
temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary differences associated with such investments and interests are only
recognized to the extent that taxable profit will be available against which the temporary difference can be utilized and
they are expected to be reversed in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied in the period in which the
liability is settled or the asset is realized, based on tax rates and tax laws that have been enacted or substantively enacted
by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences
that would follow from the manner in which the Group expects to recover or settle the carrying amount of its assets and
liabilities at the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when they relate to income tax levied by the same taxation authority. Also, they are offset when
different taxable entities that intend either to settle current tax liabilities and assets on a net basis, or to realize the assets
and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or
assets are expected to be settled or recovered.
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3) Recognition of current and deferred taxes
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other
comprehensive income or directly in equity, or items arising from initial accounting treatments of a business combination.
The tax effect arising from a business combination is included in the accounting for the business combination.
In addition, Pillar Two laws have been enacted or substantially enacted in some jurisdictions where the Group operates,
and Pillar Two laws are scheduled to take effect during the Group’s reporting period beginning on January 1, 2024.
(22) Treasury stock
When the Group repurchases its equity instruments (treasury stock), the incremental costs and net of tax effect are
deducted from equity and recognized as other capital item deducted from the total equity in the consolidated statements
of financial position. In addition, profits or losses from purchase, sale or retirement of treasury stocks are directly
recognized in equity and not in current profit or loss.
(23) Financial liabilities and equity instruments
Debt instruments and equity instruments issued by the Group are recognized as financial liabilities or equity depending
on the contract and the definitions of financial liability and equity instrument.
1) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is
recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
2) Financial guarantee liability
A financial guarantee contract is a contract that the issuer must pay a certain amount of money to compensate for losses
incurred by the holder due to the failure of a specific debtor to pay the due date on the original contract or modified terms
of the debt instrument. Financial guarantee liabilities are measured initially at fair value and subsequently measured at
the greater of the following, unless they are designated as at fair value through profit or loss or arising from the transfer
of assets.
Loss provision calculated in accordance with KIFRS 1109
The amount recognized less the accumulated profits recognized in accordance with KIFRS 1115
3) Financial liabilities measured at FVPL
Financial liabilities are classified as at FVPL when the financial liability is (i) contingent consideration of an acquirer in
a business combination, (ii) held for trading or (iii) it is designated as at FVPL as of the date of initial recognition.
However, for financial liabilities that are designated as at FVPL, the amount of change in the fair value of the financial
liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income,
unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create
or enlarge an accounting mismatch in profit or loss. The remaining amount of change in the fair value of liability is
recognized in profit or loss. Changes in fair value attributable to a financial liability’s credit risk that are recognized in
other comprehensive income are not subsequently reclassified to profit or loss; instead, they are transferred to retained
earnings upon derecognition of the financial liability. Gains or losses on financial guarantee contracts issued by the Group
that are designated by the Group as at FVPL are recognized in profit or loss.
4) Financial liabilities measured subsequently at amortized cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading,
or (iii) designated as at FVPL as of the date of initial recognition, are measured subsequently at amortized cost using the
effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant period.
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5) Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or
have expired. The difference between the carrying amount of the financial liability derecognized and the consideration
paid and payable is recognized in profit or loss.
(24) Derivatives
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss
immediately, unless the derivative is designated and effective as a hedging instrument, in such case, the timing of the
recognition in profit or loss depends on the nature of the hedge relationship.
The Group designates certain derivatives as hedging instruments to hedge the risk of changes in fair value of a recognized
asset or liability or an unrecognized firm commitment (fair value hedges) and the risk of changes in cash flow of a highly
probable forecast transaction and the risk of changes in foreign currency exchange rates of firm commitment (cash flow
hedges).
1) Fair value hedges
The Group recognizes the changes in the fair value of derivatives that are designated and qualified as fair value hedges
are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk. Hedge accounting is discontinued when the Group revokes the hedging relationship,
when the hedging instrument expires or is sold, terminated or exercised, or when it is no longer qualified for hedge
accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized
to profit or loss from that date.
2) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges is
recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately
in profit or loss. Amounts previously recognized in other comprehensive income and accumulated in equity are
reclassified to profit or loss in the periods when the hedged item affects profit or loss. If the forecast transaction results
in the recognition of a non-financial asset or liability, the related gain and loss recognized in other comprehensive income
and accumulated in equity are transferred from equity to the initial cost of related non-financial asset or liability.
Cash flow hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging
instrument expires or is sold, terminated or exercised, or it no longer qualifies for the criteria of hedging. Any gain or
loss accumulated in equity at that time remains in equity, and is recognized as profit or loss when the forecast transaction
occurs. When the forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized
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 between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated
financial statements is determined on such a basis, except for leasing transactions that are within the scope of KIFRS
1116 Leases, and measurements that have some similarities to fair value, but are not fair value, such as net realisable
value in KIFRS 1002 Inventories or value in use in KIFRS 1036 Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorized into Levels 1, 2 or 3, based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described in Note 20.
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(26) Accounting Treatment related to the Emission Rights Cap and Trade Scheme
The Group classifies the emission rights as intangible assets. The emission rights allowances received from the
government free of charge are measured at zero, while purchased emission rights allowances are measured at cost. No
emission liability is recognized if the expected quantity of emission for the performing period does not exceed the
emission allowance in possession. If the expected emissions exceed the emission allowances held, the emission liability
is measured and recognized based on the expected excess quantity of emissions and the market unit price of the emission
rights at the end of the reporting period.
(27) Significant accounting estimates and key sources of estimation uncertainties
In the application of the Group’s accounting policies, management is required to make judgments, estimates and
assumptions about the carrying amounts of assets and liabilities that cannot be identified from other sources. The
estimation and assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may be different from those estimations. The estimates and underlying assumptions are continually evaluated.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only
that period or in the period of the revision and future periods if the revision affects both current and future periods.
Information about assumptions and estimation uncertainties at December 31, 2023 that have a significant risk of resulting
in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is as follows.
1) Impairment test for goodwill and non-financial assets
Determining whether goodwill and non-financial asset is impaired requires an estimation of the value in use of the CGU
to which goodwill has been allocated and value in use of non-financial assets. The value in use calculation requires the
management to estimate the future cash flows expected to arise from the CGU and a suitable discount rate in order to
calculate present value.
2) Warranty provision
The Group recognizes provisions for the warranties of its products as described in Note 2.(20). The amounts are
recognized based on the best estimate of amounts necessary to settle the present and future warranty obligation.
3) Defined benefit plans
The Group operates defined retirement benefit plans. Defined benefit obligations are determined at the end of each
reporting period using an actuarial valuation method that requires management assumptions on discount rates, rates of
expected future salary increases and mortality rates. The characteristic of post-employment benefit plan that serves for
the long term period causes significant uncertainties when the post-employment benefit obligation is estimated.
4)
Taxation
The Group recognizes current tax and deferred tax based on the best estimates of income tax effect to be charged in the
future as the result of operating activities until the end of the reporting period. However, actual final income tax to be
charged in the future may differ from the relevant assets 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 determined.
5)
Fair value of financial instruments
The Group uses valuation techniques that include inputs that are not based on observable market data to estimate the fair
value of certain type of financial instruments. The Group makes judgements on the choice of various valuation methods
and assumptions based on the condition of the principal market at the end of the reporting period.
6) Measurement and useful lives of property, plant, equipment or intangible assets
When the Group acquires property, plant, equipment or intangible assets from a business combination, it is required to
estimate the fair value of the assets at the acquisition date and determine the useful lives of such assets for depreciation
and amortization.
37
37
7) Credit loss allowance
The Group sets credit loss allowance upon evaluation of impairment relating to account receivables and financial services
receivables as described in Note 2.(8). The precision in loss allowance is based on the estimation of expected cash flow
and assumptions and variables of risk measurement model used for the estimation.
3. TRADE NOTES AND ACCOUNTS RECEIVABLE:
(1) Trade notes and accounts receivable as of December 31, 2023 and December 31, 2022 are as follows.
Description
Trade notes and accounts receivable
Loss allowance
Present value discount accounts
December 31, 2023
December 31, 2022
Current
Non-current
Current
Non-current
(In millions of Korean Won)
￦
4,701,721 ￦
(19,539)
-
￦
4,682,182 ￦
241,556 ￦ 4,298,915 ￦
(5,005)
(25,572)
-
210,979 ￦ 4,279,057 ￦
(19,858)
200,400
(5,028)
(15,591)
179,781
(2) Aging analysis of trade notes and accounts receivable
As of December 31, 2023, aging analysis of total trade notes and accounts receivable that are past due, but not impaired
is as follows.
Description
Not due
Overdue
Within
180days
More than
91days
Overdue
Within
90days
Overdue
More than
181 days
Total
amounts
Amount of
impaired
receivables
Total trade notes and
accounts receivable
￦ 4,227,084 ￦ 396,061 ￦
56,367 ￦
263,765 ￦ 4,943,277 ￦
24,544
(In millions of Korean Won)
As of December 31, 2022 aging analysis of total trade notes and accounts receivable that are past due, but not impaired
is as follows.
Description
Not due
Overdue
Within
180days
More than
91days
Overdue
Within
90days
Overdue
More than
181 days
Total
amounts
Amount of
impaired
receivables
Total trade notes and
accounts receivable
￦ 4,225,436 ￦ 192,913 ￦
7,766 ￦ 73,200 ￦ 4,499,315 ￦
24,886
(In millions of Korean Won)
(3) Transferred trade notes and accounts receivable that are not derecognized
As of December 31, 2023 and December 31, 2022, total trade notes and accounts receivable (including inter-company
receivables within the Group) which the Group transferred to financial institutions but did not qualify for derecognition,
amount to ￦0 and ￦2,123,379 million, respectively. Cash and cash equivalents received as consideration for the transfer
are recognized as short-term borrowings due to the fact that the risks and rewards were not transferred substantially.
38
38
(4) Changes in loss allowance for the years ended December 31, 2023 and December 31, 2022 are as follows.
Description
2023
2022
(In millions of Korean Won)
Beginning of the year
Impairment loss (reversal)
Write-off
Effect of foreign exchange differences and others
End of the year
￦
￦
24,886 ￦
14,817
(15,208)
49
24,544 ￦
43,507
(940)
(20,769)
3,088
24,886
4. OTHER RECEIVABLES:
(1) Other receivables as of December 31, 2023 and December 31, 2022 are as follows.
Description
Current
Current
Non-current
(In millions of Korean Won)
Non-current
December 31, 2023
December 31, 2022
Accounts receivable – others (*)
Due from customers for contract work
Lease and rental deposits
Deposits
Others
Loss allowance
￦
￦
2,223,588 ￦
1,191,078
17,104
9,020
9,237
(18,858)
3,431,169 ￦
462,064 ￦ 3,143,232 ￦
-
332,215
60,736
-
-
1,413,886
17,471
12,854
5,631
(134,385)
855,015 ￦ 4,458,689 ￦
418,541
-
323,362
40,740
38,407
-
821,050
(*) As of December 31, 2023 and December 31, 2022, the Group recognized the reimbursement related to the warranty provisions as
a separate asset in the amount of ￦1,008,099 million and ￦1,045,159 million, respectively.
(2) Changes in other allowance for the years ended December 31, 2023 and December 31, 2022 are as follows.
Description
Beginning of the year
Impairment loss
Write-off
Effect of foreign exchange differences
End of the year
2023
2022
(In millions of Korean Won)
￦
134,385 ￦
5,165
(4,104)
(116,588)
￦
18,858 ￦
20,877
130,650
(971)
(16,171)
134,385
5. OTHER FINANCIAL ASSETS:
(1) Other financial assets as of December 31, 2023 are as follows.
Description
Financial assets measured at FVPL
Financial assets measured at FVOCI
Financial assets measured at amortized cost
Derivative assets that are effective hedging instruments
December 31, 2023
Current
Non-current
(In millions of Korean Won)
2,374,032 ￦
89,252
20,604
318,723
2,802,611 ￦
493,423
2,900,170
588,502
441,293
4,423,388
￦
￦
39
39
Other financial assets as of December 31, 2022 are as follows.
Description
Financial assets measured at FVPL
Financial assets measured at FVOCI
Financial assets measured at amortized cost
Derivative assets that are effective hedging instruments
December 31, 2022
Current
Non-current
(In millions of Korean Won)
￦
￦
5,366,752 ￦
66,044
25,404
476,545
5,934,745 ￦
343,594
2,773,537
12,494
760,151
3,889,776
(2) Financial assets measured at FVOCI as of December 31, 2023 and December 31, 2022 are as follows.
December 31,
2023
Description
Debt instruments
Equity instruments (*)
Acquisition
cost
￦
￦
627,464
2,649,742
3,277,206
Book value
(In millions of Korean Won)
￦
￦
611,668
2,377,754
2,989,422
￦
￦
December 31,
2022
Book value
499,193
2,340,388
2,839,581
(*) The Group makes an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an
investment in an equity instrument that is not held for trading at the date of initial recognition.
(3) Equity instruments classified into financial assets measured at FVOCI as of December 31, 2023 and December
31, 2022 are as follows.
Name of the company
KT Corporation (*1)
Hyundai Glovis Co., Ltd.
Hyundai Steel Company (*2)
ANI Technologies Private Limited (OLA)
Hyundai Oilbank Co., Ltd.
Grab Holdings Limited
HD Hyundai (*3)
Hyundai M Partners Co., Ltd.
NICE Information Service Co., Ltd.
Hyundai Green Food Co., Ltd. (*4)
NICE Holdings Co., Ltd.
Hyundai G.F. Holdings Co., Ltd. (*4)
Hyundai Asan Corporation
Others
Ownership
percentage
(%)
4.75
4.88
6.87
3.38
4.35
1.10
2.20
9.29
2.25
2.36
1.30
0.97
0.88
December 31,
2023
December 31,
2022
Acquisition
cost
Book value
Book value
￦
(In millions of Korean Won)
￦
458,793 ￦
210,688
727,028
278,955
53,734
442,922
9,018
9,888
3,312
5,203
3,491
9,801
22,500
414,409
421,442
350,625
334,836
282,285
224,367
186,356
109,811
14,720
12,935
9,187
6,480
5,487
2,117
417,106
2,377,754
414,412
299,359
322,546
278,825
270,911
175,010
99,055
17,151
16,664
-
6,342
15,531
2,117
422,465
2,340,388
￦ 2,649,742 ￦
￦
(*1) During the year ended December 31, 2022, the Group acquired 12,011,143 shares in KT Corporation by the exchange of
treasury stocks for the purpose of strengthening its business partnership with KT Corporation, and the shares acquired by the
Group are restricted from disposal for a certain period of time.
(*2) The Group entered into a total return swap agreement to transfer 1,367,114 shares out of total 10,540,709 shares with a
third party. The Group has disposed of all of its shares during the year ended December 31, 2023.
(*3) During the year ended December 31, 2022, the name of the company has been changed from Hyundai Heavy Industries
Holdings Co., Ltd. to HD Hyundai.
(*4) During the year ended December 31, 2023, Hyundai Green Food Co., Ltd. was spun off into Hyundai G.F. Holdings Co., Ltd.,
the surviving entity, and Hyundai Green Food Co., Ltd., the new entity.
40
40
6. INVENTORIES:
Inventories as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Finished goods
Merchandise
Semifinished goods
Work in progress
Raw materials
Supplies
Materials in transit
Others (*1)
￦
Total (*2)
￦
(In millions of Korean Won)
10,509,361 ￦
121,347
632,114
497,054
3,535,109
360,031
566,475
1,178,855
17,400,346 ￦
7,824,079
100,075
666,083
578,404
3,460,781
351,994
576,321
733,479
14,291,216
(*1) As of December 31, 2023 and December 31, 2022, others include inventories provided by operating lease with repurchase
agreement in the amount of ￦157,442 million and ￦163,268 million, respectively.
(*2) As of December 31, 2023 and December 31, 2022, the Group recognized a valuation allowance in the amount of ￦238,834
million and ￦177,907 million, respectively.
7. OTHER ASSETS:
Other assets as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Current
Non-current
Current
Non-current
Accrued income
Advanced payments
Prepaid expenses
Prepaid value-added tax and others
(In millions of Korean Won)
379 ￦
￦
668,301 ￦
1,175,996
713,067
593,575
3,150,939 ￦
137,377
1,795,515
36,848
1,970,119 ￦
￦
460,921 ￦
882,136
782,749
514,747
2,640,553 ￦
531
130,743
1,332,807
86,374
1,550,455
8. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE:
Non-current assets classified as held for sale and non-current liabilities classified as held for sale as of December 31, 2023
and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Land
Building and others
Subsidiaries (*)
Total
Non-current liabilities classified as held for sale (*)
￦
￦
￦
- ￦
-
434,503
434,503 ￦
122,851 ￦
6,676
15,626
-
22,302
5,365
(*) As the Group decided to sell all of its shares of Hyundai Motor Manufacturing Rus LLC, it classified assets and liabilities related to
Hyundai Motor Manufacturing Rus LLC as disposal group held for sale, recognizing other comprehensive loss cumulatively in the amount
of ￦321,879 million. The Group also recognized impairment loss in the amount of ￦483,992 million arising from measuring disposal
group held for sale as fair value less costs to sell. Details of assets, liabilities classified as disposal group held for sale are described in Note
43.
41
41
9. PROPERTY, PLANT AND EQUIPMENT:
(1) Property, plant and equipment (“PP&E”) as of December 31, 2023 and 2022 are as follows.
Description
Land
Buildings
Structures
Machinery and equipment
Vehicles
Dies, molds and tools
Office equipment
Others
Construction in progress
Acquisition
cost
December 31, 2023
Accumulated
depreciation (*)
Book value
Acquisition
cost
December 31, 2022
Accumulated
depreciation (*)
Book value
(In millions of Korean Won)
- ￦ 12,490,298 ￦ 12,180,112 ￦
￦ 12,490,298 ￦
12,184,105
1,869,394
18,183,078
704,453
16,567,090
2,223,452
165,125
6,377,821
- ￦ 12,180,112
7,130,705
850,886
6,583,161
362,246
4,128,365
489,564
157,808
4,270,343
￦ 70,764,816 ￦ (31,843,916) ￦ 38,920,900 ￦ 66,414,283 ￦ (30,261,093) ￦ 36,153,190
7,384,737
944,736
6,392,809
444,461
4,198,735
582,842
104,461
6,377,821
11,620,590
1,762,100
18,215,786
615,152
15,387,346
2,090,753
272,101
4,270,343
(4,799,368)
(924,658)
(11,790,269)
(259,992)
(12,368,355)
(1,640,610)
(60,664)
(4,489,885)
(911,214)
(11,632,625)
(252,906)
(11,258,981)
(1,601,189)
(114,293)
-
-
(*) Accumulated impairment losses are included.
(2) The changes in PP&E for the year ended December 31, 2023 are as follows.
Description
Beginning
of the year
Acquisitions
Transfers
within PP&E
Disposals
Depreciation
Others (*)
End of
the year
Land
Buildings
Structures
Machinery and
equipment
Vehicles
Dies, molds
and tools
Office equipment
Others
Construction-in
-progress
￦ 12,180,112 ￦
7,130,705
850,886
196,315 ￦
51,594
28,225
105,432 ￦
690,587
160,215
(2,172) ￦
(26,949)
(14,211)
- ￦
(374,434)
(80,314)
10,611 ￦ 12,490,298
7,384,737
944,736
(86,766)
(65)
(In millions of Korean Won)
6,583,161
362,246
26,453
141,460
1,153,470
162,268
(117,038)
(116,583)
(1,074,619)
(103,785)
(178,618)
(1,145)
6,392,809
444,461
4,128,365
489,564
157,808
13,273
68,535
4,867
1,467,093
217,751
24,041
(77,934)
(5,018)
(40)
(1,443,734)
(185,761)
(15,681)
111,672
(2,229)
(66,534)
4,198,735
582,842
104,461
4,270,343
36,153,190 ￦ 7,066,623 ￦
6,535,901
￦
(3,980,857)
(4,393)
-
- ￦ (364,338) ￦ (3,278,328) ￦
(443,173)
6,377,821
(656,247) ￦ 38,920,900
(*) Others include the effect of foreign exchange differences, transfers from or to other accounts, changes in the scope of consolidation,
impairment loss of ￦140,170 million for the CGU attributable to Hyundai Motor Manufacturing Rus LLC and others.
The changes in PP&E for the year ended December 31, 2022 are as follows.
Description
Beginning
of the year
Acquisitions
Transfers
within PP&E
Disposals
Depreciation
Others (*)
End of
the year
Land
Buildings
Structures
Machinery and
equipment
Vehicles
Dies, molds
and tools
Office equipment
Others
Construction-in
-progress
￦
12,130,094 ￦
6,763,707
813,762
- ￦
6,946
18,900
56,663 ￦
703,192
90,828
(9,874) ￦
(28,181)
(5,258)
- ￦
(357,212)
(77,357)
3,229 ￦ 12,180,112
7,130,705
42,253
850,886
10,011
(In millions of Korean Won)
6,657,350
253,851
32,604
109,262
986,035
137,739
(91,333)
(59,329)
(1,064,339)
(81,904)
62,844
2,627
6,583,161
362,246
4,411,102
424,549
206,618
19,799
55,507
3,577
1,284,698
187,658
79,172
(65,801)
(3,303)
(288)
(1,403,168)
(173,658)
(17,647)
(118,265)
(1,189)
(113,624)
4,128,365
489,564
157,808
3,882,050
35,543,083 ￦ 4,356,701 ￦
4,110,106
￦
(3,525,985)
(1,192)
-
- ￦ (264,559) ￦ (3,175,285) ￦
4,270,343
(194,636)
(306,750) ￦ 36,153,190
(*) Others include the effect of foreign exchange differences, transfers from or to other accounts, impairment loss of ￦172,769
million for the CGU attributable to Hyundai Motor Manufacturing Rus LLC and others. The impairment test regarding CGU
attributable to Hyundai Motor Manufacturing Rus LLC was conducted due to continued suspension of production, and the recoverable
amount was based on its fair value less costs to sell (net fair value).
42
42
10. INVESTMENT PROPERTY:
(1) Investment property as of December 31, 2023 and December 31, 2022 is as follows.
Description
Land
Buildings
Structures
Acquisition
cost
December 31, 2023
Accumulated
depreciation
Book value
Acquisition
cost
December 31, 2022
Accumulated
depreciation
Book value
(In millions of Korean Won)
￦
￦
54,284 ￦
310,646
18,629
383,559 ￦
- ￦
(228,480)
(8,931)
(237,411) ￦
54,284 ￦
82,166
9,698
146,148 ￦
47,608 ￦
310,589
18,630
376,827 ￦
- ￦
(223,852)
(8,525)
(232,377) ￦
47,608
86,737
10,105
144,450
(2) The changes in investment property for the year ended December 31, 2023 are as follows:
Description
Beginning
of the year
Transfers(*)
Effect of foreign
exchange
differences
Depreciation
(In millions of Korean Won)
End of
the year
Land
Buildings
Structures
￦
47,608 ￦
86,737
10,105
144,450 ￦
￦
6,676 ￦
465
-
7,141 ￦
- ￦
(4,994)
(408)
(5,402) ￦
- ￦
(42)
1
(41) ￦
54,284
82,166
9,698
146,148
(*) Transferred amount from Construction-in-progress and other accounts
The changes in investment properties for the year ended December 31, 2022 are as follows.
Description
Beginning
of the year
Transfers(*)
Effect of foreign
exchange
differences
Depreciation
(In millions of Korean Won)
End of
the year
Land
Buildings
Structures
￦
54,284 ￦
91,858
10,514
156,656 ￦
￦
(6,676) ￦
201
-
(6,475) ￦
- ￦
(4,994)
(408)
(5,402) ￦
- ￦
(328)
(1)
(329) ￦
47,608
86,737
10,105
144,450
(*) Transferred amount from Construction-in-progress and other accounts
(3) The fair value of investment properties as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Land
Buildings
Structures
￦
￦
(In millions of Korean Won)
54,284 ￦
261,906
15,496
331,686 ￦
47,608
333,488
15,496
396,592
The fair value measurement of the investment properties was performed by an independent third party. The Group deems
the change in fair value from the fair value measurement performed at the initial recognition of the investment properties
is not material.
The fair value of the investment properties is classified as Level 3, based on the inputs used in the valuation techniques.
The fair value has been determined based on the cost approach and the market approach. The cost approach measures
fair value as current replacement cost considering building structures and design, supplementary installation, depreciation
period.
43
43
(4) Income and expenses related to investment properties for the years ended December 31, 2023 and 2022 are as
follows.
Description
Rental income
Operating and maintenance expenses
￦
2023
2022
(In millions of Korean Won)
￦
43,881
13,271
43,967
13,201
11. INTANGIBLE ASSETS:
(1) Intangible assets as of December 31, 2023 and December 31, 2022 are as follows.
Description
Acquisition
cost
December 31, 2023
Accumulated
amortization (*)
Book value
Acquisition
cost
December 31, 2022
Accumulated
amortization (*)
Book value
Goodwill
Development
costs
Industrial
property rights
Software
Others
Construction in
progress
￦
738,791 ￦
(37,972) ￦
700,819 ￦
728,644 ￦
(35,927) ￦
692,717
(In millions of Korean Won)
10,205,023
(6,849,151)
3,355,872
10,679,258
(7,124,833)
3,554,425
582,180
2,219,784
1,059,105
(400,272)
(1,454,281)
(247,173)
181,908
765,503
811,932
515,017
1,935,307
874,134
(366,666)
(1,280,424)
(216,651)
148,351
654,883
657,483
434,544
(31,993)
402,551
415,983
￦ 15,239,427 ￦ (9,020,842) ￦ 6,218,585 ￦ 15,148,343 ￦
(21,465)
(9,045,966) ￦
394,518
6,102,377
(*) Accumulated impairment losses are included.
(2) The changes in intangible assets for the year ended December 31, 2023 are as follows.
Description
Beginning
of the year
Internal
developments
External
acquisition
(In millions of Korean Won)
Transfers
within
intangible
assets
Disposals
￦
Goodwill
Development Costs
Industrial property rights
Software
Others
Construction in progress
￦
692,717 ￦
3,554,425
148,351
654,883
657,483
394,518
6,102,377 ￦
- ￦
1,318,026
81
3,567
247
31,126
1,353,047 ￦
- ￦
21,675
998
48,455
10,266
343,218
424,612 ￦
- ￦
46,161
59,963
82,747
178,914
(367,785)
- ￦
-
(2,310)
(94)
(4,146)
(10,088)
-
(16,638)
44
44
Description
Amortization
Impairment loss
/reversal (*1)
Others (*2)
(In millions of Korean Won)
End of
the year
Goodwill
Development Costs
Industrial property rights
Software
Others
Construction in progress
￦
- ￦
(1,408,725)
(32,167)
(207,256)
(14,617)
-
￦
(1,662,765) ￦
- ￦
(197,229)
-
(221)
(19)
(2,081)
(199,550) ￦
8,102 ￦
23,849
4,776
187,474
(10,254)
3,555
217,502 ￦
700,819
3,355,872
181,908
765,503
811,932
402,551
6,218,585
(*1) Impairment losses include impairment of development costs due to the discontinued sales and development projects
and others for the year ended December 31, 2023.
(*2) Others include the effect of foreign exchange differences, transfers from or to other accounts, changes in the scope
of consolidation and others.
The changes in intangible assets for the year ended December 31, 2022 are as follows.
Description
Beginning
of the year
Internal
developments
External
acquisition
(In millions of Korean Won)
Transfers
within
intangible
assets
Disposals
￦
Goodwill
Development Costs
Industrial property rights
Software
Others
Construction in progress
￦
373,763 ￦
4,042,493
139,209
477,856
631,923
181,742
5,846,986 ￦
- ￦
1,176,423
93
540
-
18,941
1,195,997 ￦
- ￦
26,653
505
62,745
40,277
388,696
518,876 ￦
- ￦
45,890
33,875
60,924
45,521
(186,210)
- ￦
-
(3,755)
(85)
(23)
(30,387)
-
(34,250)
Description
Amortization
Impairment loss
/reversal (*1)
Others (*2)
(In millions of Korean Won)
End of
the year
Goodwill
Development Costs
Industrial property rights
Software
Others
Construction in progress
￦
- ￦
(1,596,985)
(29,057)
(188,800)
(52,093)
-
￦
(1,866,935) ￦
- ￦
(159,009)
-
(7,426)
(1,841)
(502)
(168,778) ￦
318,954 ￦
22,715
3,811
249,067
24,083
(8,149)
610,481 ￦
692,717
3,554,425
148,351
654,883
657,483
394,518
6,102,377
(*1) Impairment losses include impairment of development costs due to the discontinued sales and development projects
and others for the year ended December 31, 2022.
(*2) Others include the effect of foreign exchange differences, transfers from or to other accounts, changes in the scope
of consolidation and others.
45
45
(3) Development costs of intangible assets as of December 31, 2023 consist of as follows.
Description
Book value
(In millions of Korean Won)
Remaining amortization period (*)
Automobile
˝
Powertrain
˝
Others
˝
Developing
Amortizing
Developing
Amortizing
Developing
Amortizing
￦
￦
1,209,380
1,711,268
103,963
105,478
34,748
191,035
3,355,872
-
30 months
-
24 months
-
42 months
(*) Since the remaining amortization period differs for each project, the weighted average remaining useful lives of the development
costs at the end of reporting period are disclosed.
Development costs of intangible assets as of December 31, 2022 consist of as follows.
Description
Book value
(In millions of Korean Won)
Remaining amortization period (*)
Automobile
˝
Powertrain
˝
Others
˝
Developing
Amortizing
Developing
Amortizing
Developing
Amortizing
￦
￦
944,149
2,163,052
106,894
153,676
-
186,654
3,554,425
-
30 months
-
24 months
-
46 months
(*) Since the remaining amortization period differs for each project, the weighted average remaining useful lives of the development
costs at the end of reporting period are disclosed.
(4) Research and development expenditures for the years ended December 31, 2023 and 2022 are as follows.
Description
Development costs (intangible assets)
Research and development costs (*1)
Total (*2)
2023
2022
(In millions of Korean Won)
￦
￦
1,339,701
2,629,163
3,968,864
￦
￦
1,203,076
2,130,455
3,333,531
(*1) Presented in manufacturing costs, administrative expenses.
(*2) Amortization of development costs is not included.
46
46
(5)
Impairment test of goodwill
The allocation of goodwill amongst the Group’s CGUs as of December 31, 2023 and December 31, 2022 is as follows.
Segment
December 31, 2023
December 31, 2022
Vehicle
Finance
Others
(In millions of Korean Won)
￦
￦
261,782 ￦
482
438,555
700,819 ￦
256,508
482
435,727
692,717
The recoverable amounts of the Group’s CGUs are measured as their value-in-use calculated based on cash flow
projections of financial budgets for the next five years approved by management. The pre-tax discount rate applied
to the cash flow projections for the years ended December 31, 2023 and 2022 are 14.2% and 12.7%, respectively.
Cash flow projections beyond the five-year period are extrapolated by using the estimated growth rate which does
not exceed the long-term average growth rate of the region and industry to which the CGU belongs. No impairment
loss had been recognized for the years ended December 31, 2023 and 2022.
12. LEASES (AS A LESSEE):
(1) The changes in right-of-use assets for the year ended December 31, 2023 are as follows.
Description
Beginning
of the year
Acquisitions
Disposals
Depreciation
Others(*)
End of the year
(In millions of Korean Won)
Land
Buildings
Vehicles
Others
￦
251,898 ￦
819,353
26,593
19,449
￦ 1,117,293 ￦
37,144 ￦ (173,643) ￦
383,571
12,739
30,558
464,012 ￦ (250,601) ￦
(76,542)
(416)
-
(14,159) ￦
(227,877)
(13,358)
(13,841)
(269,235) ￦
1,468 ￦
(27,330)
2,378
(342)
(23,826) ￦
102,708
871,175
27,936
35,824
1,037,643
(*) Others include the effect of foreign exchange differences, changes in the scope of consolidation and others.
The changes in right-of-use assets for the year ended December 31, 2022 are as follows.
Description
Beginning
of the year
Acquisitions
Disposals
Depreciation
Others(*)
End of the year
(In millions of Korean Won)
Land
Buildings
Vehicles
Others
￦
￦
83,604 ￦
754,149
2,370
100,703
940,826 ￦
175,406 ￦
330,661
34,238
18,482
558,787 ￦
(392) ￦
(59,061)
(507)
-
(59,960) ￦
(6,097) ￦
(197,807)
(6,258)
(6,323)
(216,485) ￦
(623) ￦
(8,589)
(3,250)
(93,413)
(105,875) ￦
251,898
819,353
26,593
19,449
1,117,293
(*) Others include the effect of foreign exchange differences, changes in the scope of consolidation and others.
(2) Lease liabilities as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Undiscounted lease liabilities
Discounted lease liabilities
Current
Non-current
(In millions of Korean Won)
￦
1,260,621
1,058,402
224,350
834,052
1,303,067
1,110,804
405,053
705,751
￦
47
47
(3) Expenses recognized in relation to leases for the years ended December 31, 2023 and 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Interest on lease liabilities
Expenses in relation to leases of short-term and low-
￦
value assets
(In millions of Korean Won)
￦
37,635
17,117
33,993
19,961
48
48
13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES:
(1) Investments in joint ventures and associates as of December 31, 2023 are as follows.
Name of the company
Nature of
business
Location
Ownership
percentage
(%)
Book value
(In millions of
Korean Won)
Beijing Hyundai Qiche Financing
Company (BHAF) (*1,3)
Hyundai WIA Automotive Engine
Financing
(Shandong) Company (WAE) (*4)
Manufacturing
Beijing-Hyundai Motor Company
(BHMC) (*1)
HMG Global LLC
Manufacturing
New business
Investment &
management
Motional AD LLC (*1)
Boston Dynamics AI Institute, LLC
supernal, LLC (*1)
Hyundai Capital Bank Europe GmbH
R&D
R&D
R&D
China
China
China
USA
USA
USA
USA
(HCBE)
Hyundai Capital France (HCF) (*1)
HYUNDAI MOTOR GROUP
INNOVATION CENTER IN
SINGAPORE PTE. LTD.(HMGICS)
Kia Corporation
Hyundai Engineering & Construction
Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Commercial Inc.
Hyundai Autoever Corp.
Hyundai Motor Securities Co., Ltd.
Eukor Car Carriers Inc. (*2)
Tiger Alternative Investment trust
No.318 (*1)
Haevichi Hotels & Resorts Co., Ltd.
Others
Financing
Financing
Germany
France
Manufacturing
Manufacturing
Singapore
Korea
Construction
Manufacturing
Manufacturing
Financing
IT service
Securities
Brokerage
Transportation
Real Estate
Investment
Hotelkeeping
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
53.00
￦
637,681
31.40
50.00
49.50
26.00
47.50
44.44
49.00
50.00
40.00
34.16
20.95
41.13
25.35
37.50
31.59
25.43
12.00
50.00
41.90
91,058
9,413
1,275,203
700,691
246,535
163,943
671,589
123,879
117,494
15,976,149
3,125,635
1,181,611
783,750
492,127
486,425
344,646
321,030
250,796
84,997
1,391,490
28,476,142
￦
(*1) Each of the joint arrangements in which the Group retains joint control is structured through a separate entity and there are no
contractual terms stating that the parties retain rights to the assets and obligations for the liabilities relating to the joint
arrangement or other relevant facts and circumstances. As a result, the Group considers that the parties that retain joint control
in the arrangement have rights to the net assets and classifies the joint arrangements as joint ventures. Also, there are
restrictions, which require consent from the director who is designated by the other investors, for certain transactions, such as
payment of dividend.
(*2) As the Group is considered to be able to exercise significant influence by representation on the board of directors of the
investee and other reasons, although the total ownership percentage is less than 20%, the investment is accounted for using the
equity method.
(*3) The entity is categorized as a joint venture although the Group’s total ownership percentage is a majority share of 53%, because
the Group does not have control over the entity by virtue of an agreement with the other investors.
(*4) The recoverable amount was less than the carrying amount and the impairment loss amounting to ₩105,284 million was
recognized during the year ended December 31, 2023. The recoverable amount is determined based on the value of use, and the
discount rate applied to measure the value of use is 11.18% per annum.
49
49
Investments in joint ventures and associates as of December 31, 2022 are as follows.
Name of the company
Nature of
business
Location
Ownership
percentage
(%)
Book value
(In millions of
Korean Won)
Beijing Hyundai Qiche Financing
Company (BHAF) (*1,3)
Beijing-Hyundai Motor Company
(BHMC) (*1)
Hyundai WIA Automotive Engine
(Shandong) Company (WAE)
Motional AD LLC (*1)
HMG Global LLC (*4)
Boston Dynamics AI Institute, LLC
supernal, LLC (*1)
Hyundai Capital Bank Europe GmbH
(HCBE)
Hyundai Capital France (HCF)(*1)
Hyundai Motor Group INNOVATION
CENTER IN SINGAPORE PTE.
LTD.(HMGICS)
Kia Corporation
Hyundai Engineering & Construction
Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Autoever Corp.
Hyundai Commercial Inc.
Hyundai Motor Securities Co., Ltd.
Eukor Car Carriers Inc. (*2)
Haevichi Hotels & Resorts Co., Ltd.
Others
Financing
China
53.00
￦
759,766
Manufacturing
China
50.00
Manufacturing
R&D
New business
Investment &
Management
R&D
R&D
China
USA
USA
USA
USA
Financing
Financing
Germany
France
Manufacturing
Manufacturing
Singapore
Korea
Construction
Manufacturing
Manufacturing
IT service
Financing
Securities
Brokerage
Transportation
Hotelkeeping
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
31.40
25.92
49.50
47.50
44.44
49.00
50.00
40.00
33.88
20.95
41.13
25.35
31.59
37.50
25.43
12.00
41.90
525,250
215,786
907,061
608,223
266,357
178,564
508,110
75,323
104,556
13,251,475
3,033,945
1,157,462
759,270
449,994
374,970
332,624
269,261
96,303
1,325,137
25,199,437
￦
(*1) Each of the joint arrangements in which the Group retains joint control is structured through a separate entity and there are no
contractual terms stating that the parties retain rights to the assets and obligations for the liabilities relating to the joint
arrangement or other relevant facts and circumstances. As a result, the Group considers that the parties that retain joint control
in the arrangement have rights to the net assets and classifies the joint arrangements as joint ventures. Also, there are
restrictions, which require consent from the director who is designated by the other investors, for certain transactions, such as
payment of dividend.
(*2) As the Group is considered to be able to exercise significant influence by representation on the board of directors of the
investee and other reasons, although the total ownership percentage is less than 20%, the investment is accounted for using the
equity method.
(*3) The entity is categorized as a joint venture although the Group’s total ownership percentage is a majority share of 53%, because
the Group does not have control over the entity by virtue of an agreement with the other investors.
(*4) During the year ended December 31, 2022, the Group completed the establishment of HMG Global LLC by contributing cash
and all of the Group’s interests in Boston Dynamics, Inc. to HMG Global LLC.
50
50
(2) The changes in investments in joint ventures and associates for the year ended December 31, 2023 are as follows.
Name of the company
Beginning of
the year
Acquisitions
(disposals)
Share of
profits (losses)
for the period
Dividends
(In millions of Korean Won)
Others (*)
End of the year
BHAF
WAE
BHMC
HMG Global LLC
Motional AD LLC
Boston Dynamics AI
Institute, LLC
supernal, LLC
HCBE
HCF
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Commercial Inc.
Hyundai Autoever Corp.
Hyundai Motor Securities
Co., Ltd.
Eukor Car Carriers Inc.
Tiger Alternative
Investment trust No.318
Haevichi Hotels & Resorts
￦
759,766 ￦
215,786
525,250
608,223
907,061
- ￦
-
-
754,776
-
266,357
178,564
508,110
75,323
104,556
13,251,475
-
215,887
140,581
38,990
29,300
-
3,033,945
1,157,462
759,270
374,970
449,994
332,624
269,261
-
-
-
-
-
-
-
24,648 ￦ (144,672) ￦
(2,061) ￦
(19,110)
(524,377)
(86,091)
(201,394)
(24,772)
(229,267)
(21,188)
6,448
(20,315)
3,129,359
109,811
33,554
19,516
83,650
47,993
-
-
-
-
(105,618)
8,540
(1,705)
(4,976)
-
-
-
-
-
(480,614)
(13,996)
-
(4,826)
-
(9,877)
4,950
(1,241)
44,086
3,118
3,953
75,929
(4,125)
(9,405)
9,790
33,507
(1,685)
637,681
91,058
9,413
1,275,203
700,691
246,535
163,943
671,589
123,879
117,494
15,976,149
3,125,635
1,181,611
783,750
492,127
486,425
12,860
89,015
(4,436)
(38,646)
3,598
1,400
344,646
321,030
-
256,200
(5,404)
-
-
250,796
Co., Ltd.
Others
96,303
1,325,137
-
57,267
(11,200)
76,204
-
(79,592)
￦ 25,199,437 ￦ 1,493,001 ￦ 2,489,940 ￦ (776,659) ￦
84,997
(106)
12,474
1,391,490
70,423 ￦ 28,476,142
(*) Others consist of changes in accumulated other comprehensive income (loss) and others.
51
51
The changes in investments in joint ventures and associates for the year ended December 31, 2022 are as follows.
Name of the company
Beginning of
the year
Acquisitions
(disposals)
Share of
profits (losses)
for the period
Dividends
Others (*)
End of the year
￦
736,704 ￦
345,950
245,868
1,025,263
-
-
-
414,634
498,050
-
78,316
11,620,132
2,935,786
1,085,858
729,053
410,935
339,300
314,532
186,489
BHAF
BHMC
WAE
Motional AD LLC
HMG Global LLC
Boston Dynamics AI
Institute, LLC
supernal, LLC
Boston Dynamics, Inc.
HCBE
HCF
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Autoever Corp.
Hyundai Commercial Inc.
Hyundai Motor Securities
Co., Ltd.
Eukor Car Carriers Inc.
Haevichi Hotels & Resorts
Co., Ltd.
Others
￦
(In millions of Korean Won)
- ￦
44,478 ￦
597,979
-
-
743,062
283,366
194,596
-
-
75,191
29,528
-
(394,495)
(25,336)
(189,135)
(5,483)
(2,308)
(87,946)
(37,483)
15,337
924
(8,067)
1,907,469
- ￦
-
-
-
-
(21,416) ￦
(24,184)
(4,746)
70,933
(129,356)
759,766
525,250
215,786
907,061
608,223
-
-
-
-
-
-
(411,955)
(14,701)
71,914
(377,151)
(5,277)
(792)
4,779
135,829
266,357
178,564
-
508,110
75,323
104,556
13,251,475
-
-
-
-
-
-
-
89,636
47,166
31,789
39,961
100,212
(13,996)
-
(4,826)
(6,065)
(20,000)
22,519
24,438
3,254
5,163
(44,542)
3,033,945
1,157,462
759,270
449,994
374,970
22,153
82,923
(6,453)
(7,392)
2,392
7,241
332,624
269,261
96,303
98,894
1,325,137
1,363,353
22,429,117 ￦ 2,001,483 ￦ 1,636,824 ￦ (487,036) ￦ (380,951) ￦ 25,199,437
10
(107,258)
-
(16,349)
(2,601)
7,630
-
77,761
(*) Others consist of changes in accumulated other comprehensive income (loss) and others.
52
52
(3) Summarized financial information of the Group’s major joint ventures and associates as of and for the year
ended December 31, 2023 is as follows.
Name of the company
Current
assets
BHAF (*)
WAE
BHMC
HMG Global LLC
Motional AD LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE (*)
HCF (*)
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Commercial Inc. (*)
Hyundai Autoever Corp.
Hyundai Motor Securities Co., Ltd. (*)
Eukor Car Carriers Inc.
Tiger Alternative Investment trust
No.318
Haevichi Hotels & Resorts Co., Ltd.
Non-current
assets
Current
liabilities
(In millions of Korean Won)
- ￦
Non-current
liabilities
￦
2,787,605 ￦
328,159
2,381,289
255,370
195,840
508,378
184,936
13,466,701
3,572,040
66,473
37,466,302
378,785
2,453,993
3,226,650
2,954,385
67,955
382,837
-
-
678,881
43,161,524
1,584,432 ￦
116,180
4,484,377
124,210
132,590
21,790
109,761
12,101,110
3,325,447
196,468
25,674,105
18,613,430
4,407,156
3,721,639
11,826,809
1,833,667
11,585,257
1,417,292
5,101,065
3,608,930
3,092,821
-
1,009,390
-
3,257,299
10,356,647
3,404,363
1,972,463
10,211,806
922,947
10,307,455
722,525
-
5,397
281,563
303,525
290,284
35,796
99,471
-
-
262,288
8,395,486
2,902,333
1,662,230
1,075,243
-
327,798
-
1,270,233
9,721
42,103
372,556
404,699
288,304
248,049
29,100
60,061
Name of the company
Sales
Profit (loss) for
Other
the period from
comprehensive
continuing
operations
income (loss)
(In millions of Korean Won)
Total
comprehensive
income (loss)
BHAF (*)
WAE
BHMC
HMG Global LLC
Motional AD LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE (*)
HCF (*)
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Commercial Inc. (*)
Hyundai Autoever Corp.
Hyundai Motor Securities Co., Ltd. (*)
Eukor Car Carriers Inc.
Tiger Alternative Investment trust
No.318
Haevichi Hotels & Resorts Co., Ltd.
￦
236,851 ￦
365,973
4,763,204
84,398
1,775
-
-
1,256,007
173,068
79,792
99,808,420
46,507 ￦
(65,014)
(994,057)
(343,794)
(803,742)
(51,357)
(526,387)
40,187
12,777
(50,787)
8,777,817
- ￦
-
-
5,069
12,115
-
-
88,806
4,581
-
190,203
46,507
(65,014)
(994,057)
(338,725)
(791,627)
(51,357)
(526,387)
128,993
17,358
(50,787)
8,968,020
29,651,357
11,693,980
8,590,316
728,303
3,065,015
1,582,197
3,090,801
654,281
96,745
52,548
133,182
140,313
53,511
731,559
6,232
162,921
(13,047)
(29,323)
(28,254)
(21,456)
(792)
8,311
(5,094)
20,033
45,811
-
(207)
626,027
75,289
51,756
141,493
135,219
73,544
777,370
(13,047)
(29,530)
(*) The companies operate financial business and their total assets (liabilities) are included in current assets (liabilities) as the companies
do not distinguish current and non-current portion in their separate financial statements.
53
53
Summarized financial information of the Group’s major joint ventures and associates as of and for the year
ended December 31, 2022 is as follows.
Name of the company
Current
assets
Non-current
assets
Current
liabilities
(In millions of Korean Won)
- ￦
Non-current
liabilities
BHAF (*)
BHMC
WAE
Motional AD LLC
HMG Global LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE (*)
HCF (*)
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Autoever Corp.
Hyundai Commercial Inc. (*)
Hyundai Motor Securities Co., Ltd. (*)
Eukor Car Carriers Inc.
Haevichi Hotels & Resorts Co., Ltd.
￦
4,044,066 ￦
3,042,267
537,909
646,160
799,047
556,273
338,831
9,448,406
1,956,470
118,876
34,147,147
3,120,431
457,303
3,187,411
1,384,220
53,152
216,123
-
-
370,889
39,563,818
2,610,546 ￦
4,715,086
338,319
142,518
88,391
9,072
42,290
8,405,237
1,801,224
18,593
25,377,803
15,516,745
4,311,914
4,267,463
1,695,856
11,170,366
10,233,054
1,026,513
43,919
5,394,963
3,209,159
3,278,988
923,580
-
-
3,312,611
412,477
8,757,397
3,147,190
2,410,435
883,698
9,774,127
9,008,411
609,827
253,312
-
399,063
5,551
89,824
320,996
39,876
108,565
-
-
216,915
8,990,081
2,230,034
1,499,678
1,402,365
245,358
-
-
1,505,122
34,862
Name of the company
Sales
Profit (loss) for
Other
the period from
comprehensive
continuing
operations
income (loss)
(In millions of Korean Won)
Total
comprehensive
income (loss)
BHAF (*)
BHMC
WAE
Motional AD LLC
HMG Global LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE (*)
HCF (*)
HMGICS
Kia Corporation
Hyundai Engineering &
Construction Co., Ltd.
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Autoever Corp.
Hyundai Commercial Inc. (*)
Hyundai Motor Securities Co., Ltd. (*)
Eukor Car Carriers Inc.
Haevichi Hotels & Resorts Co., Ltd.
￦
362,978 ￦
83,920 ￦
4,900,315
501,436
1,207
21,388
-
-
971,654
15,602
12,190
86,559,029
21,239,082
10,256,254
8,207,614
2,754,508
588,167
1,186,029
2,865,427
152,860
(821,204)
(71,164)
(751,726)
(63,993)
(4,858)
(195,567)
32,144
1,848
(20,168)
5,408,976
470,876
123,483
43,482
116,170
266,640
87,102
668,062
(5,485)
- ￦
-
-
(6,314)
-
-
-
16,302
(1,654)
-
227,095
144,153
64,705
9,136
17,586
(116,056)
5,147
43,489
9
83,920
(821,204)
(71,164)
(758,040)
(63,993)
(4,858)
(195,567)
48,446
194
(20,168)
5,636,071
615,029
188,188
52,618
133,756
150,584
92,249
711,551
(5,476)
(*) The companies operate financial business and their total assets (liabilities) are included in current assets (liabilities) as the companies
do not distinguish current and non-current portion in their separate financial statements.
54
54
(4) Summarized additional financial information of the Group’s major joint ventures as of and for the year
ended December 31, 2023 is as follows.
Cash and
cash
equivalents
Current
financial
liabilities
Non-current
financial
liabilities
Depreciation
and
amortization
Interest
income
Interest
expenses
Income tax
expense
￦ 694,653 ￦ 1,199,356 ￦
- ￦
8,884 ￦ 234,323 ￦ 60,215 ￦
1,323,025
623,684
61,785
669,321
23,712
48,157
(In millions of Korean Won)
77,819
182,290
153,126
30,839
-
3,325,447
19,743
-
-
132,772
18,882
-
4,161
800
127,608
2,721
2,997
73,896
22,627
37,878
7,830
-
4,489
Name of the
company
BHAF(*)
BHMC
Motional AD
LLC
supernal, LLC
HCF (*)
Tiger
Alternative
Investment
trust No.318
8,253
288,304
29,100
2,189
288
1,108
-
(*) The total amount of assets (liabilities) is included in current financial liabilities as BHAF and HCF, as a financial service business, do
not distinguish current and non-current portion in their separate financial statements.
Summarized additional financial information of the Group’s major joint ventures as of and for the year ended December
31, 2022 is as follows.
Name of the
company
BHAF(*)
BHMC
Motional AD
LLC
supernal, LLC
HCF(*)
Cash and
cash
equivalents
Current
financial
liabilities
Non-current
financial
liabilities
Depreciation
and
amortization
Interest
income
Interest
expenses
Income tax
expense
(In millions of Korean Won)
￦ 1,023,368 ￦ 2,385,681 ￦
- ￦
1,887,932
606,105
161,500
13,926 ￦ 341,357 ￦ 128,264 ￦
570,749
18,263
51,436
71,075
333,184
68,198
16,062
-
1,801,224
62,753
-
-
87,887
8,305
-
5,760
589
14,274
-
5,983
4,823
32,245
60,112
6,027
-
626
(*) The total amount of assets (liabilities) is included in current financial liabilities as BHAF and HCF, as a financial service business, do
not distinguish current and non-current portion in their separate financial statements.
55
55
(5) Reconciliation of the Group’s share of net assets of the Group’s major joint ventures and associates to their
carrying amounts as of December 31, 2023 is as follows.
Name of the company
BHAF
WAE (*)
BHMC
HMG Global LLC
Motional AD LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE
HCF
HMGICS
Kia Corporation
Hyundai Engineering & Construction
Co., Ltd. (*)
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Commercial Inc.
Hyundai Autoever Corp. (*)
Hyundai Motor Securities Co., Ltd.
Eukor Car Carriers Inc.
Tiger Alternative Investment trust No.318 (*)
Haevichi Hotels & Resorts Co., Ltd. (*)
Group’s share of
net assets
Goodwill
Unrealized
profit (loss) and
others
Carrying
amounts
￦
(In millions of Korean Won)
- ￦
- ￦
637,681 ￦
188,495
34,671
1,275,203
709,112
246,405
163,949
660,815
123,294
114,640
15,853,616
2,393,998
1,167,997
878,333
492,127
427,504
305,343
321,049
194,777
81,421
7,809
-
-
-
-
-
9,041
585
-
197,089
731,362
-
-
-
58,822
40,052
-
56,019
3,576
(105,246)
(25,258)
-
(8,421)
130
(6)
1,733
-
2,854
(74,556)
275
13,614
(94,583)
-
99
(749)
(19)
-
-
637,681
91,058
9,413
1,275,203
700,691
246,535
163,943
671,589
123,879
117,494
15,976,149
3,125,635
1,181,611
783,750
492,127
486,425
344,646
321,030
250,796
84,997
(*) The difference between the carrying amount and the fair value of the investee’s identifiable assets and liabilities as of the acquisition
date is included in the amount of net assets.
56
56
Reconciliation of the Group’s share of net assets of the Group’s major joint ventures and associates to their carrying
amounts as of December 31, 2022 is as follows.
Name of the company
BHAF
BHMC
WAE (*)
Motional AD LLC
HMG Global LLC
Boston Dynamics AI Institute, LLC
supernal, LLC
HCBE
HCF
HMGICS
Kia Corporation
Hyundai Engineering & Construction
Co., Ltd. (*)
Hyundai Transys Inc.
Hyundai WIA Corporation
Hyundai Autoever Corp. (*)
Hyundai Commercial Inc.
Hyundai Motor Securities Co., Ltd.
Eukor Car Carriers Inc.
Haevichi Hotels & Resorts Co., Ltd. (*)
Group’s share
of
net assets
Goodwill
Unrealized
profit (loss) and
others
Carrying
amounts
￦
- ￦
759,766 ￦
551,378
207,938
922,942
608,223
266,227
178,571
497,892
77,621
101,702
13,124,472
(In millions of Korean Won)
- ￦
-
7,809
-
-
-
-
22,341
-
-
197,089
(26,128)
39
(15,881)
-
130
(7)
(12,123)
(2,298)
2,854
(70,086)
759,766
525,250
215,786
907,061
608,223
266,357
178,564
508,110
75,323
104,556
13,251,475
2,302,451
1,142,960
854,377
391,073
374,970
291,823
268,999
92,727
731,362
-
-
58,822
-
40,052
-
3,576
132
14,502
(95,107)
99
-
749
262
-
3,033,945
1,157,462
759,270
449,994
374,970
332,624
269,261
96,303
(*) The difference between the carrying amount and the fair value of the investee’s identifiable assets and liabilities as of the acquisition
date is included in the amount of net assets.
(6) The market price of major listed equity securities as of December 31, 2023 is as follows.
Name of the company
Price per share
Total number of
shares
(In millions of Korean Won, except price per share)
Market value
Kia Corporation
Hyundai Autoever Corp.
Hyundai Engineering & Construction Co., Ltd.
Hyundai WIA Corporation
Hyundai Motor Securities Co., Ltd.
￦
100,000
211,500
34,900
65,100
8,590
137,318,251 ￦
8,664,334
23,327,400
6,893,596
8,065,595
13,731,825
1,832,507
814,126
448,773
69,283
57
57
14. FINANCIAL SERVICES RECEIVABLES:
(1) Financial services receivables as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31,
2023
December 31,
2022
Loans
Card receivables
Financial lease receivables
Others
Loss allowance
Loan origination fee
Present value discount accounts
￦
￦
￦
(In millions of Korean Won)
86,800,272
21,196,283
2,052,053
7,043
110,055,651
(1,769,240)
(587,895)
(10,855)
107,687,661
￦
69,298,391
21,018,287
2,060,971
20,761
92,398,410
(1,726,916)
(261,084)
(46,564)
90,363,846
(2) Transfer of financial services receivables
As of December 31, 2023 and 2022, the Group has issued asset-backed securities with loan receivables and credit card
receivables as underlying assets and related asset-backed securities have the right of recourse. As of December 31, 2023
the carrying amount of financial assets that were transferred but not derecognized (including inter-company bonds)
amounted to ￦33,972,924 million and its fair value is ￦33,011,898 million. The carrying amount of related liabilities is
￦23,178,071 million and its fair value is ￦23,116,550 million. As a result, the fair value of net position is ￦9,895,348
million. As of December 31, 2022, the carrying amount of financial assets that were transferred but not derecognized
(including inter-company bonds) amounted to ￦31,838,127 million and its fair value is ￦30,847,083 million. The
carrying amount of related liabilities is ￦22,795,844 million and its fair value is ￦22,263,492 million. As a result, the
fair value of net position is ￦8,583,591 million.
58
58
(3) The changes in loss allowance of financial services receivables for the year ended December 31, 2023 are as
follows.
Description
Beginning of the year
Transfer to 12-Month expected
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
Description
Beginning of the year
Transfer to 12-Month expected
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
12-Month
expected
credit losses
Loan Obligations
Lifetime expected credit losses
Not Impaired
Impaired
Total loan
obligations
￦
345,035 ￦
(In millions of Korean Won)
234,157
501,419 ￦
￦
1,080,611
136,477
(132,123)
(36,319)
40,241
(3,001)
(32,630)
(253)
-
(10,807)
434,664
(366,271)
-
(4,354)
(3,922)
13,808
271,319
(218,366)
(54,462)
4,710
414,019 ￦
3,965
471,088 ￦
￦
40
238,220
￦
12-Month
expected
credit losses
Card receivables
Lifetime expected credit losses
Not Impaired
Impaired
￦
189,841 ￦
(In millions of Korean Won)
219,571 ￦
178,791 ￦
84,210
(84,058)
(14,774)
15,177
(152)
(403)
(122,103)
92,337
-
(1,562)
(103,344)
125,385
-
-
225,447
205,181
(389,551)
(18,980)
-
-
-
￦
227,949 ￦
172,731 ￦
200,333 ￦
-
-
-
673,353
(584,890)
(54,462)
8,715
1,123,327
Total card
receivables
588,203
-
-
-
422,903
(389,551)
(20,542)
-
601,013
Description
12-Month
expected
credit losses
Beginning of the year
Transfer to 12-Month expected
￦
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
Others
Lifetime expected credit losses
Not Impaired
Impaired
(In millions of Korean Won)
8,974 ￦
13,336 ￦
35,792 ￦
4,100
(2,689)
(1,411)
(1,550)
(195)
(1,920)
-
-
1,948
(442)
1,993
-
-
(398)
637
2,152
(15,424)
-
Total others
Total
Allowances
58,102 ￦ 1,726,916
-
-
-
-
-
2,225
(15,424)
-
-
1,098,481
(989,865)
(75,004)
￦
(2)
13,769 ￦
(1)
9,783 ￦
-
21,348 ￦
(3)
8,712
44,900 ￦ 1,769,240
59
59
The changes in allowance for doubtful accounts of financial services receivables for the year ended December 31,
2022 are as follows.
Description
Beginning of the year
Transfer to 12-Month expected
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
Description
Beginning of the year
Transfer to 12-Month expected
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
12-Month
expected
credit losses
Loan Obligations
Lifetime expected credit losses
Not Impaired
Impaired
￦
449,207 ￦
(In millions of Korean Won)
204,034
316,425 ￦
￦
69,360
(65,956)
(54,196)
58,198
(2,434)
(139,481)
(169)
(2)
(7,225)
435,731
(241,816)
-
(3,404)
(4,002)
9,659
164,836
(132,234)
(4,794)
22,750
345,035 ￦
6,062
501,419 ￦
￦
62
234,157
￦
12-Month
expected
credit losses
Card receivables
Lifetime expected credit losses
Not Impaired
Impaired
￦
195,709 ￦
(In millions of Korean Won)
163,391 ￦
154,600 ￦
49,247
(49,118)
(26,980)
27,145
(129)
(165)
(93,623)
65,488
-
-
(70,901)
149,053
-
1
164,524
217,342
(342,013)
(15,368)
-
-
-
￦
189,841 ￦
219,571 ￦
178,791 ￦
Total loan
obligations
969,666
-
-
-
461,086
(374,219)
(4,796)
28,874
1,080,611
Total card
receivables
513,700
-
-
-
431,883
(342,013)
(15,367)
-
588,203
Description
12-Month
expected
credit losses
Beginning of the year
Transfer to 12-Month expected
￦
credit losses
Transfer to lifetime expected
credit losses
Transfer to credit-impaired
Others
Lifetime expected credit losses
Not Impaired
Impaired
(In millions of Korean Won)
8,119 ￦
14,299 ￦
46,203 ￦
4,326
(1,737)
(2,590)
(1,550)
1,974
(424)
Total others
Total
Allowances
68,621 ￦ 1,551,987
(1)
-
(1)
-
financial assets
Impairment loss (reversal)
Collection (write-off)
Disposals and others
Effect of foreign exchange
differences
End of the year
(100)
(3,639)
-
-
-
￦
13,336 ￦
(237)
855
-
-
337
8,315
(16,049)
-
-
5,531
(16,049)
-
-
898,500
(732,281)
(20,163)
-
8,974 ￦
-
35,792 ￦
-
28,874
58,102 ￦ 1,726,916
60
60
(4) Gross investments in financial leases and their present value of minimum lease receipts as of December 31, 2023
and December 31, 2022 are as follows.
Description
Not later than one year
Later than one year and not later
than five years
Later than five years
December 31, 2023
December 31, 2022
Gross
investments
in financial
leases
Present value
of minimum
lease payment
receivable
(In millions of Korean Won)
Gross
investments
in financial
leases
Present value
of minimum
lease payment
receivable
￦
809,793 ￦
676,940 ￦
868,890 ￦
758,724
1,535,881
22,215
2,367,889 ￦
1,354,786
19,309
2,051,035 ￦
1,423,828
5,215
2,297,933 ￦
1,293,495
4,988
2,057,207
￦
(5) Unearned interest income of financial leases as of December 31, 2023 and December 31, 2022 is as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Gross investments in financial lease
Net lease investments:
Present value of minimum lease payment receivable
Present value of unguaranteed residual value
￦
2,367,889 ￦
2,051,035
1,018
2,052,053
Unearned interest income
￦
315,836 ￦
2,297,933
2,057,207
3,764
2,060,971
236,962
15. INVESTMENTS IN OPERATING LEASES (AS A LESSOR):
(1) Investments in operating leases as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Acquisition cost
Accumulated depreciation
Accumulated impairment loss
￦
￦
(In millions of Korean Won)
37,319,651 ￦
(7,520,255)
(134,778)
29,664,618 ￦
32,090,728
(4,262,026)
(147,168)
27,681,534
(2) Future minimum lease payment receivable related to investments in operating leases as of December 31, 2023 and
December 31, 2022 is as follows.
Description
Not later than one year
Later than one year and not later
than five years
Later than five years
December 31, 2023
December 31, 2022
(In millions of Korean Won)
￦
5,356,971 ￦
5,001,104
6,674,656
233
12,031,860 ￦
5,906,720
111
10,907,935
￦
61
61
16. BORROWINGS AND DEBENTURES:
(1) Short-term borrowings as of December 31, 2023 and December 31, 2022 are as follows.
Description
Lender
Overdrafts
General borrowings
Citi Bank and others
Korea Development Bank
Annual
interest rate
(%)
1.75~6.03
December 31,
2023
December 31,
2022
(In millions of Korean Won)
￦
177,130 ￦
62,101
and others
TIBOR+0.8~11.87
4,664,576
5,277,609
Borrowings collateralized
by trade receivables
Banker’s Usance
Commercial paper
Credit facilities
Hana Bank and others
Hana Bank and others
Shinhan Bank and others
Korea Development Bank
-
0.28~9.20
4.20~6.33
3.94
-
308,187
3,785,655
100,000
2,123,379
705,155
2,898,236
300,000
￦ 9,035,548 ￦ 11,366,480
(2) Long-term debt as of December 31, 2023 and December 31, 2022 is as follows.
Description
Lender
General borrowings
Credit facilities
Commercial paper
Asset-backed securities
Others(*)
Hana Bank and others
Shinhan Bank and others
KIWOOM Securities and others
HSBC and others
NH Investment & Securities
Annual
interest rate
(%)
0.10~7.72
4.74~9.13
1.41~4.74
4.40~6.12
-
Less: present value discounts
Less: current maturities
December 31,
2023
December 31,
2022
(In millions of Korean Won)
￦
8,081,132 ￦
40,200
1,790,000
14,865,832
-
24,777,164
(164,297)
(7,043,107)
8,909,156
40,200
2,900,000
6,377,616
68,903
18,295,875
(77,686)
(5,933,040)
￦ 17,569,760 ￦ 12,285,149
(*) The Group transferred a portion of its voting shares to a third party in accordance with the total revenue swap agreement as of December
31, 2022. However, the Group still recognizes it as the financial asset because the Group still owns the majority of the risks and rewards
of ownership of the transferred shares. Also, the Group recognized the amount received from disposal as borrowings.
(3) Debentures as of December 31, 2023 and December 31, 2022 are as follows.
Description
Latest
maturity date
Non-guaranteed public debentures
Non-guaranteed private debentures
Asset-backed securities
March 29, 2032
September 21, 2030
December 17, 2029
Less: discount on debentures
Less: current maturities
Annual
interest rate
(%)
1.00~6.63
0.80~6.67
0.38~6.12
December 31,
2023
December 31,
2022
(In millions of Korean Won)
￦
￦
33,702,908 ￦ 33,979,495
25,971,468
34,403,777
22,801,451
23,189,001
82,752,414
91,295,686
(196,142)
(151,263)
(19,641,091)
(18,066,051)
73,033,493 ￦ 62,960,060
62
62
17. PROVISIONS:
(1) Provisions as of December 31, 2023 and December 31, 2022 are as follows.
Description
Warranty
Other long-term employee benefits
Others
December 31,
2023
December 31,
2022
(In millions of Korean Won)
￦
￦
9,121,153 ￦
637,190
1,892,375
11,650,718 ￦
10,399,527
598,637
1,432,417
12,430,581
(2) The changes in provisions for the year ended December 31, 2023 are as follows.
Description
Warranty (*)
Other long-term
employee benefits
(In millions of Korean Won)
Others
Beginning of the year
Charged
Utilized
Effect of foreign exchange differences
and others
End of the year
￦
￦
10,399,527 ￦
2,175,691
(3,442,626)
(11,439)
9,121,153 ￦
598,637 ￦
119,281
(80,749)
21
637,190 ￦
1,432,417
1,192,422
(896,740)
164,276
1,892,375
(*) During the year ended December 31, 2023, the Group updated the measurement of warranty provisions related to the recall of
theta 2 and other engines to reflect new information and a longer period of historical claim data.
The changes in provisions for the year ended December 31, 2022 are as follows.
Description
Warranty (*)
Other long-term
employee benefits
(In millions of Korean Won)
Others
Beginning of the year
Charged
Utilized
Effect of foreign exchange differences
and others
End of the year
￦
￦
9,048,185 ￦
4,347,523
(3,133,544)
137,363
10,399,527 ￦
676,432 ￦
3,900
(83,682)
1,987
598,637 ￦
1,154,167
953,430
(645,750)
(29,430)
1,432,417
(*) During the year ended December 31, 2022, the Group updated the measurement of warranty provisions related to the recall of
theta 2 and other engines to reflect new information and a longer period of historical claim data.
18. OTHER FINANCIAL LIABILITIES:
(1) Other financial liabilities as of December 31, 2023 are as follows.
Description
Financial liabilities measured at FVPL
Derivative liabilities that are effective hedging instruments
Financial Liabilities measured at amortized cost
December 31, 2023
Current
(In millions of Korean Won)
Non-current
35,241
20,909
562
56,712
￦
￦
808
172,047
3,544
176,399
￦
￦
63
63
(2) Other financial liabilities as of December 31, 2022 are as follows.
Description
Financial liabilities measured at FVPL
Derivative liabilities that are effective hedging instruments
Financial Liabilities measured at amortized cost
December 31, 2022
Current
(In millions of Korean Won)
Non-current
￦
￦
10,053
88,832
259
99,144
￦
￦
174,386
86,464
1,668
262,518
19. OTHER LIABILITIES:
Other liabilities as of December 31, 2023 and December 31, 2022 are as follows.
Description
Advances received
Withholdings
Accrued expenses
Unearned income
Due to customers for contract work
Others
December 31, 2023
December 31, 2022
Current
Non-current
Current
Non-current
(In millions of Korean Won)
￦
1,154,776 ￦
1,232,665
4,481,203
1,248,837
1,636,127
823,425
￦ 10,577,033 ￦
105,755 ￦
271,117
-
4,026,192
-
808,948
5,212,012 ￦
1,464,339 ￦
1,056,483
3,351,822
1,090,242
1,217,052
420,303
8,600,241 ￦
67,776
223,568
-
3,150,126
-
810,795
4,252,265
20. FINANCIAL INSTRUMENTS:
(1) Financial assets by categories as of December 31, 2023 are as follows.
Financial
assets
measured at
FVPL
Financial assets
measured at
amortized cost
Financial
assets
measured at
FVOCI
Derivative
assets that
are effective
hedging
instruments
(In millions of Korean Won)
Book value
Fair value
￦
- ￦ 19,166,619 ￦
- ￦
- ￦ 19,166,619 ￦
19,166,619
-
7,494,934
-
-
7,494,934
7,494,934
Description
Cash and
cash equivalents
Short-term and long-
term financial
instruments
Trade notes and
accounts receivable
Other receivables
Other financial assets
Other assets
Financial services
-
-
2,867,455
1,086
4,893,161
1,605,675
609,106
668,668
-
-
2,989,422
-
-
-
760,016
-
4,893,161
1,605,675
7,225,999
669,754
4,893,161
1,605,675
7,225,999
669,754
receivables
105,443,151
-
￦ 2,868,541 ￦ 142,125,824 ￦ 2,989,422 ￦ 760,016 ￦ 148,743,803 ￦ 146,499,293
107,687,661
107,687,661
-
-
64
64
Financial assets by categories as of December 31, 2022 are as follows
Financial
assets
measured at
FVPL
Financial assets
measured at
amortized cost
Description
Derivative
assets that are
effective
hedging
instruments
Financial
assets
measured at
FVOCI
(In millions of Korean Won)
Book value
Fair value
Cash and
cash equivalents
Short-term and long-
￦
term financial
instruments
Trade notes and
accounts receivable
Other receivables
Other financial assets
Other assets
Financial services
- ￦
20,864,879 ￦
- ￦
- ￦
20,864,879 ￦
20,864,879
-
5,887,154
-
-
5,887,154
5,887,154
-
-
5,710,346
27,960
4,458,838
2,378,968
37,898
434,829
-
-
2,839,581
-
-
-
1,236,696
-
4,458,838
2,378,968
9,824,521
462,789
4,458,838
2,378,968
9,824,521
462,789
receivables
86,705,579
-
￦ 5,738,306 ￦ 124,426,412 ￦ 2,839,581 ￦ 1,236,696 ￦ 134,240,995 ￦ 130,582,728
90,363,846
90,363,846
-
-
(2) Financial liabilities by categories as of December 31, 2023 are as follows.
Description
Financial
liabilities
measured at FVPL
Financial liabilities
measured at
amortized cost
Derivative liabilities
that are effective
hedging instruments
(In millions of Korean Won)
Book value
Fair value
Trade notes and
accounts payable
￦
Other payables
Borrowings and
debentures
Other financial
liabilities
Lease liabilities
Other liabilities
- ￦
-
10,952,046 ￦
7,560,541
- ￦
-
10,952,046 ￦
7,560,541
10,952,046
7,560,541
29,705
124,718,254
-
124,747,959
124,403,404
36,049
-
-
65,754 ￦
4,106
1,058,402
4,267,077
148,560,426 ￦
192,956
-
-
192,956 ￦
233,111
1,058,402
4,267,077
233,111
1,058,402
4,267,077
148,819,136 ￦ 148,474,581
￦
Financial liabilities by categories as of December 31, 2022 are as follows.
Description
Financial
liabilities
measured at FVPL
Financial liabilities
measured at
amortized cost
Derivative liabilities
that are effective
hedging instruments
(In millions of Korean Won)
Book value
Fair value
Trade notes and
accounts payable
￦
Other payables
Borrowings and
debentures
Other financial
liabilities
Lease liabilities
Other liabilities
- ￦
-
10,797,065 ￦
7,292,508
- ￦
-
10,797,065 ￦
7,292,508
10,797,065
7,292,508
27,239
112,158,581
-
112,185,820
108,603,134
184,439
-
-
￦
211,678 ￦
1,927
1,110,804
2,960,053
134,320,938 ￦
175,296
-
-
175,296 ￦
361,662
1,110,804
2,960,053
361,662
1,110,804
2,960,053
134,707,912 ￦ 131,125,226
65
65
(3) Fair value estimation
The Group categorizes the assets and liabilities measured at fair value into the following three-level fair value hierarchy
in accordance with the inputs used for fair value measurement.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
Fair value measurements of financial instruments by fair value hierarchy levels as of December 31, 2023 are as follows.
Description
Level 1
December 31, 2023
Level 2
Level 3
(In millions of Korean Won)
Total
Financial assets:
Financial assets measured
at FVPL
Derivative assets that are
effective hedging instruments
Financial assets measured
at FVOCI
Financial liabilities:
Financial liabilities measured
at FVPL
Derivative liabilities that are
effective hedging instruments
￦
54,853
￦
2,401,437 ￦
412,251 ￦
2,868,541
-
760,016
-
760,016
1,599,823
1,654,676
￦
580,478
3,741,931 ￦
809,121
1,221,372 ￦
2,989,422
6,617,979
-
￦
-
-
￦
5,318 ￦
60,436 ￦
65,754
191,803
197,121 ￦
1,153
61,589 ￦
192,956
258,710
￦
￦
￦
Fair value measurements of financial instruments by fair value hierarchy levels as of December 31, 2022 are as follows.
Description
Level 1
December 31, 2022
Level 3
Level 2
(In millions of Korean Won)
Total
Financial assets:
Financial assets measured
at FVPL
Derivative assets that are
effective hedging instruments
Financial assets measured
at FVOCI
Financial liabilities:
Financial liabilities measured
at FVPL
Derivative liabilities that are
effective hedging instruments
￦
57,556
￦
5,412,130 ￦
268,620 ￦
5,738,306
-
1,236,696
-
1,236,696
1,493,627
1,551,183
￦
451,990
7,100,816 ￦
893,964
1,162,584 ￦
2,839,581
9,814,583
-
￦
-
-
￦
11,451 ￦
200,227 ￦
211,678
173,361
184,812 ￦
1,935
202,162 ￦
175,296
386,974
￦
￦
￦
66
66
The changes in financial instruments classified as Level 3 for the year ended December 31, 2023 are as follows.
Description
Beginning
of the period
Purchases
Disposals
Valuation
Others
(In millions of Korean Won)
End of
the period
Financial assets measured
at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at FVPL
Derivative liabilities that are
effective hedging instruments
￦
268,620 ￦
136,235 ￦
(13,487)
￦
14,398 ￦
6,485 ￦
412,251
893,964
725
(27,995)
(54,502)
(3,071)
809,121
200,227
1,935
-
-
-
-
11,833
(151,624)
60,436
(782)
-
1,153
The changes in financial instruments classified as Level 3 for the year ended December 31, 2022 are as follows.
Description
Beginning
of the period
Purchases Disposals
Valuation
Others
(In millions of Korean Won)
End of
the period
Financial assets measured
at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at FVPL
Derivative liabilities that are
effective hedging instruments
￦
162,330 ￦
92,328 ￦
(6,107)
￦
8,529
￦
11,540 ￦
268,620
913,767
12,373
(874)
79,143
(110,445)
893,964
53,139
29,884
-
1,935
-
-
2,169
115,035
200,227
-
-
1,935
(4) Financial assets and liabilities subject to offsetting, and financial instruments subject to an enforceable master netting
arrangement or similar agreement as of December 31, 2023 are as follows.
Gross amounts
of recognized
financial assets
and liabilities
set off in the
consolidated
statement of
financial
position
Net amounts of
financial assets
and liabilities
presented in the
consolidated
statement of
financial
position
Related
amounts not set
off in the
consolidated
statement of
financial
position -
financial
instruments
Related
amounts not
set off in the
statement of
financial
position -
collateral
received
(pledged)
(In millions of Korean Won)
Gross amounts
of recognized
financial assets
and liabilities
Net amounts
￦ 5,192,922 ￦
2,786,530
299,761 ￦
1,180,855
33,107
760,016
-
-
￦ 8,772,575 ￦ 1,480,616 ￦
4,893,161 ￦
1,605,675
- ￦
-
- ￦
-
4,893,161
1,605,675
33,107
14
-
33,093
760,016
7,291,959 ￦
100,723
100,737 ￦
-
- ￦
659,293
7,191,222
￦ 12,130,201 ￦ 1,178,155 ￦ 10,952,046 ￦
7,863,002
302,461
7,560,541
- ￦
-
- ￦ 10,952,046
7,560,541
-
65,754
192,956
-
-
￦ 20,251,913 ￦ 1,480,616 ￦ 18,771,297 ￦
192,956
100,723
100,737 ￦
-
92,233
- ￦ 18,670,560
65,754
14
-
65,740
Description
Financial assets:
Trade notes and accounts
receivable
Other receivables
Financial assets measured at
FVPL
Derivative assets that are
effective hedging instruments (*)
Financial liabilities:
Trade notes and accounts
payable
Other payables
Financial liabilities measured at
FVPL
Derivative liabilities that are
effective hedging instruments (*)
(*) These are derivative assets and liabilities that the Group may have the right to offset in the event of default, insolvency or bankruptcy
of the counterparty although these do not meet the criteria of offsetting under KIFRS 1032.
67
67
Financial assets and liabilities, subject to offsetting, and financial instruments subject to an enforceable master
netting arrangement or similar agreement as of December 31, 2022 are as follows.
Gross amounts
of recognized
financial assets
and liabilities
set off in the
consolidated
statement of
financial
position
Net amounts of
financial assets
and liabilities
presented in the
consolidated
statement of
financial
position
Related
amounts not set
off in the
consolidated
statement of
financial
position -
financial
instruments
Related
amounts not
set off in the
statement of
financial
position -
collateral
received
(pledged)
(In millions of Korean Won)
Gross amounts
of recognized
financial assets
and liabilities
Net amounts
￦ 4,731,300 ￦
3,005,009
272,462 ￦
626,041
4,458,838 ￦
2,378,968
47,256
1,236,696
￦ 9,020,261 ￦
-
-
898,503 ￦
47,256
1,236,696
8,121,758 ￦
93,233
93,233 ￦
- ￦
-
-
￦ 11,418,549 ￦
7,569,527
621,484 ￦ 10,797,065 ￦
277,019
7,292,508
211,678
175,296
-
-
211,678
175,296
￦ 19,375,050 ￦
898,503 ￦ 18,476,547 ￦
- ￦
-
-
93,233
93,233 ￦
- ￦
-
4,458,838
2,378,968
-
47,256
-
- ￦
1,143,463
8,028,525
- ￦ 10,797,065
7,292,508
-
-
211,678
-
82,063
- ￦ 18,383,314
Description
Financial assets:
Trade notes and accounts
receivable
Other receivables
Financial assets measured at
FVPL
Derivative assets that are
effective hedging instruments (*)
Financial liabilities:
Trade notes and accounts
payable
Other payables
Financial liabilities measured at
FVPL
Derivative liabilities that are
effective hedging instruments (*)
(*) These are derivative assets and liabilities that the Group may have the right to offset in the event of default, insolvency or bankruptcy
of the counterparty although these do not meet the criteria of offsetting under KIFRS 1032.
(5) Interest income, dividend income and interest expenses by categories of financial instruments for the year ended
December 31, 2023 are as follows.
Description
Non-financial services:
Financial assets measured
at amortized cost
Financial assets
measured at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at amortized cost
Financial services:
Financial assets measured
at amortized cost
Financial assets measured
at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at amortized cost
Interest
income
2023
Dividend
income
(In millions of Korean Won)
Interest
expenses
￦
937,276 ￦
60,379
-
-
￦
997,655 ￦
- ￦
-
79,127
-
79,127 ￦
￦
4,676,007 ￦
- ￦
-
-
-
542,172
542,172
-
-
-
707
-
-
707 ￦
3,971,993
3,971,993
100,025
557
-
￦
4,776,589 ￦
68
68
Interest income, dividend income and interest expenses by categories of financial instruments for the year ended
December 31, 2022 are as follows.
Description
Non-financial services:
Financial assets measured
at amortized cost
Financial assets
measured at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at amortized cost
Financial services:
Financial assets measured
at amortized cost
Financial assets measured
at FVPL
Financial assets measured
at FVOCI
Financial liabilities measured
at amortized cost
Interest
income
2022
Dividend
income
(In millions of Korean Won)
Interest
expenses
￦
443,993 ￦
150,084
-
-
￦
594,077 ￦
- ￦
-
44,533
-
44,533 ￦
￦
3,466,000 ￦
- ￦
5,825
1,300
-
-
-
426,731
426,731
-
-
-
899
-
￦
3,472,724 ￦
-
-
1,300 ￦
2,277,906
2,277,906
(6) The commission income (financial services revenue) arising from financial assets or liabilities other than financial
assets or liabilities measured at FVPL for the years ended December 31, 2023 and 2022 are ￦1,263,422 million and
￦1,011,152 million, respectively. In addition, the fee expenses (cost of sales from financial services) related
to
financial assets or liabilities other than financial assets or liabilities measured at FVPL for the years ended December
31, 2023 and 2022 are ￦489,309 million and ￦427,606 million, respectively.
(7) The Group recognizes transfers between levels of the fair value hierarchy at the date of the event or change in
circumstances that caused the transfer. There are no significant transfers between Level 1 and Level 2 for the year
ended December 31, 2023.
(8) Descriptions of the valuation techniques and the inputs used in the fair value measurements categorized within
Level 2 and Level 3 of the fair value hierarchy are as follows.
- Currency forwards, options and swap
Fair value of currency forwards, options and swap is measured based on forward exchange rate quoted in the current
market at the end of the reporting period, which has the same remaining period of derivatives to be measured. If the
forward exchange rate, which has the same remaining period of currency forwards, options and swap, is not quoted
in the current market, fair value is measured using estimates of similar period of forward exchange rate by applying
interpolation method with quoted forward exchange rates.
As the inputs used to measure fair value of currency forwards, options and swap are supported by observable market
data, such as forward exchange rates, the Group classifies the estimates of fair value measurements of the currency
forwards, options and swap as Level 2 of the fair value hierarchy.
- Interest rate swap
The discount rate and forward interest rate used to measure the fair value of interest rate swap are determined based
on an applicable yield curve derived from interest quoted in the current market at the end of the reporting period.
The fair value of interest rate swap was measured as a discount on the estimated future cash flows of interest rate
swap based on forward interest rates derived from the above method at an appropriate discount rate.
69
69
As the inputs used to measure fair value of interest rate swap are supported by observable market data, such as yield
curves, the Group classifies the estimates of fair value measurements of the interest rate swap as Level 2 of the fair
value hierarchy.
- Debt instruments including corporate bonds
Fair value of debt instruments including corporate bonds is measured applying discounted cash flow method. The
rate used to discount cash flows is determined based on swap rate and credit spreads of debt instruments, which
have the similar credit rating and period quoted in the current market with those of debt instruments including
corporate bonds that should be measured. The Group classifies fair value measurements of debt instruments
including corporate bonds as Level 2 of the fair-value hierarchy since the rate, which has significant effects on fair
value of debt instruments including corporate bonds, is based on observable market data.
- Unlisted equity securities
Fair value of unlisted equity securities is measured using discounted cash flow projection and market approach, and
as for discounted cash flow projections, certain assumptions not based on observable market prices or rate, such as
sales growth rate, pre-tax operating income ratio and discount rate based on business plan and circumstance of
is
industry, are used to estimate the future cash flow. The discount rate used to discount the future cash
calculated by applying the Capital Asset Pricing Model, using the data of similar listed companies. The Group
determines that the effect of estimation and assumptions referred above affecting fair value of unlisted equity
securities is significant and classifies fair value measurements of unlisted securities as Level 3 of the fair value
hierarchy.
flows,
- Redeemable convertible preference share
Fair value of redeemable convertible preference share is measured based on the fair value, exercise price, maturity,
and the stock price volatility up to the maturity of the underlying asset, using the binomial option pricing model. The
discount rate used in the binomial option pricing model is applied by converting the rate of return on corporate bonds
with equivalent credit rating corresponding to the remaining maturity into a continuously compounding discount
rate, and the stock price volatility up to maturity uses historical volatility of proxy companies in similar industries
in response to the remaining maturity. The fair value of the underlying asset is assumed to be maintained until the
end of the current period after estimating the underlying asset value on the contracted date by inverting the
underlying asset value inherent in the terms of the transaction on the premise that the acquisition of related shares is
an orderly transaction and traded at fair value. The Group classifies the fair value measurement of redeemable
convertible preference share as Level 3 in the fair value hierarchy based on the conclusion that the effect of the
above assumptions and estimates on the fair value of redeemable convertible preference share is significant.
70
70
(9) The quantitative information about significant unobservable inputs used in the fair value measurements
categorized within Level 3 of the fair value hierarchy and the description of relationships of significant
unobservable inputs to the fair value are as follows:
Fair value at
December 31, 2023
(In millions of Korean Won)
￦
1,221,372
Description
Unlisted equity
securities
and others
Discounted
cash flow
and others
Valuation
techniques
Unobservable
inputs
Range
Description of
relationship
Sales growth rate
Pre-tax operating
profit margin
ratio
Discount rate
-3.1% ~ 6.5% If the sales
3.3% ~ 3.5%
8.3%
growth rate
and the pre-tax
operating
profit margin
ratio increase,
and the
discount rate
declines, the
fair value
increases
Description
Fair value at
December 31, 2023
(In millions of Korean Won)
Valuation
techniques
Unobservable
inputs
Range
Description of
relationship
Redeemable
￦
61,589
convertible
preference
share and
others
Binomial
option
pricing
model
and
others
Risk discount rate
28.3%
Risk free discount
rate
Stock price
volatility
3.7%
73.9%
If the discount
rate declines
and stock
price volatility
increases, the
fair value
increases
The Group does not expect changes in significant unobservable inputs would have a significant impact on the fair value,
taking into account reasonable alternative assumptions.
21. CAPITAL STOCK:
The Company’s number of shares authorized is 600,000,000 shares. Common stock and preferred stock as of
December 31, 2023 and December 31, 2022 are as follows.
(1) Common stock
Description
December 31, 2023
December 31, 2022
Issued
Par value
Capital stock
￦
(In millions of Korean Won, except par value)
211,531,506 shares
5,000 ￦
1,157,982
213,668,187 shares
5,000
1,157,982
The Company completed stock retirement of 10,000,000, 1,320,000, 6,608,292 and 2,136,681 common shares as of
March 5, 2001, May 4, 2004, July 27, 2018 and February 3, 2023, respectively. Due to these stock retirements, the total
face value of outstanding stock differs from the capital stock amount as of December 31, 2023 and December 31, 2022.
71
71
(2) Preferred stock
Description
Par value
Issued
Korean Won
(In millions of
Korean Won)
Dividend rate
1st preferred stock ￦
2nd preferred stock
3rd preferred stock
5,000
˝
˝
24,113,119 shares ￦
36,120,597 shares
2,404,448 shares
62,638,164 shares ￦
125,550 Dividend rate of common stock + 1%
193,069 The lowest stimulated dividend rate: 2%
12,392 The lowest stimulated dividend rate: 1%
331,011
As of March 5, 2001, the Company retired 1,000,000 second preferred shares and as of July 27, 2018, the Company
retired 753,297 first preferred shares, 1,128,414 second preferred shares and 49,564 third preferred shares and as of
February 3, 2023, the Company retired 243,566 first preferred shares, 364,854 second preferred shares and 24,287 third
preferred shares. Due to the stock retirement, the total face value of outstanding stock differs from the capital stock
amount.
22. CAPITAL SURPLUS:
Capital surplus as of December 31, 2023 and December 31, 2022 is as follows.
Description
December 31, 2023
December 31, 2022
Paid-in capital in excess of par value
Others (*)
(In millions of Korean Won)
￦
￦
3,321,334
1,057,155
4,378,489
￦
￦
3,321,334
919,969
4,241,303
(*) During the year ended December 31, 2022, the Group disposed of 2,216,983 treasury stocks and recognized ￦118,686 million gains
on disposition of treasury stock.
23. OTHER CAPITAL ITEMS:
Other capital items consist of treasury stocks purchased for the stabilization of stock price. The number of treasury
stocks as of December 31, 2023 and December 31, 2022 is as follows.
Description
Common stock
1st preferred stock
2nd preferred stock
3rd preferred stock
December 31,
2023
December 31,
2022
(Number of shares)
7,700,625
2,186,993
1,353,570
48,574
11,408,711
2,430,559
1,718,424
72,861
72
72
24. ACCUMULATED OTHER COMPREHENSIVE LOSS:
(1) Accumulated other comprehensive loss as of December 31, 2023 is as follows.
Description
December 31, 2023
(In millions of Korean Won)
Gain on valuation of financial assets measured at FVOCI
Loss on valuation of financial assets measured at FVOCI
Gain on valuation of cash flow hedge derivatives
Loss on valuation of cash flow hedge derivatives
Gain on share of the other comprehensive income of
equity-accounted investees
Loss on share of the other comprehensive income of
equity-accounted investees
Loss on foreign operations translation, net
￦
￦
366,933
(596,940)
96,683
(62,194)
239,708
(411,142)
(471,940)
(838,892)
(2) Accumulated other comprehensive loss as of December 31, 2022 is as follows.
Description
December 31, 2022
(In millions of Korean Won)
Gain on valuation of financial assets measured at FVOCI
Loss on valuation of financial assets measured at FVOCI
Gain on valuation of cash flow hedge derivatives
Loss on valuation of cash flow hedge derivatives
Gain on share of the other comprehensive income of
equity-accounted investees
Loss on share of the other comprehensive income of
equity-accounted investees
Loss on foreign operations translation, net
￦
￦
418,986
(768,117)
276,938
(93,162)
195,912
(715,558)
(935,681)
(1,620,682)
25. RETAINED EARNINGS:
(1) Retained earnings as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31,2022
Legal reserve (*)
Discretionary reserve
Unappropriated
￦
￦
(In millions of Korean Won)
744,836 ￦
49,710,496
38,210,473
88,665,805 ￦
744,836
47,307,996
31,900,769
79,953,601
(*) The Commercial Code of the Republic of Korea requires the Company to appropriate as a legal reserve, a minimum of 10% of
annual cash dividends declared, until such reserve equals 50% of its capital stock issued. The reserve is not available for the
payment of cash dividends, but may be transferred to capital stock or used to reduce accumulated deficit, if any.
Appraisal gains, amounting to ￦1,852,871 million, derived from asset revaluation pursuant to the Asset Revaluation Law
of Korea are included in retained earnings. It may be only transferred to capital stock or used to reduce accumulated
deficit, if any.
73
73
(2) The computation of the interim dividends for the year ended December 31, 2023 is as follows.
Description
Par value per share
Shares, net of treasury stocks
Dividends per share
Dividend rate
Dividends declared
￦
￦
Common
stock
1st Preferred
stock
2nd Preferred
stock
3rd Preferred
stock
(In millions of Korean Won, except per share amounts)
5,000 ￦
5,000 ￦
5,000 ￦
202,875,846
21,926,126
34,767,027
3,000 ￦
60%
608,628
3,000 ￦
60%
65,778
3,000 ￦
60%
104,301
5,000
2,355,874
3,000
60%
7,068
The computation of the interim dividends for the year ended December 31, 2022 is as follows.
Description
Par value per share
Shares, net of treasury stocks
Dividends per share
Dividend rate
Dividends declared
￦
￦
Common
stock
1st Preferred
stock
2nd Preferred
stock
3rd Preferred
stock
(In millions of Korean Won, except per share amounts)
5,000 ￦
5,000 ￦
5,000 ￦
198,765,273
21,926,126
34,767,027
1,000 ￦
20%
198,764
1,000 ￦
20%
21,926
1,000 ￦
20%
34,767
5,000
2,355,874
1,000
20%
2,356
(3) The computation of the proposed dividends for the year ended December 31, 2023 is as follows.
Description
Par value per share
Shares, net of treasury stocks
Dividends per share
Dividend rate
Dividends declared
￦
￦
Common
stock
1st Preferred
stock
2nd Preferred
stock
3rd Preferred
stock
(In millions of Korean Won, except per share amounts)
5,000 ￦
5,000 ￦
5,000 ￦
203,830,881
21,926,126
34,767,027
8,400 ￦
168%
1,712,179
8,450 ￦
169%
185,276
8,500 ￦
170%
295,520
5,000
2,355,874
8,450
169%
19,907
The computation of the dividends for the year ended December 31, 2022 is as follows.
Description
Par value per share
Shares, net of treasury stocks
Dividends per share
Dividend rate
Dividends declared
￦
￦
Common
stock
1st Preferred
stock
2nd Preferred
stock
3rd Preferred
stock
(In millions of Korean Won, except per share amounts)
5,000 ￦
5,000 ￦
5,000 ￦
202,259,476
21,926,126
34,767,027
6,000 ￦
120%
1,213,557
6,050 ￦
121%
132,653
6,100 ￦
122%
212,079
5,000
2,355,874
6,050
121%
14,253
26. HYBRID BOND:
(1) HYUNDAI CARD CO., LTD., a subsidiary of the Company, issued hybrid bond and the Group classified it as
equity (non-controlling interests). As of December 31, 2023, hybrid bond is as follows.
Description
Issue date
Maturity date
The 876th Hybrid Tier 1 (Private) July 12, 2023
Issue cost
July 12, 2053
Annual
interest rate
(%)
6.00
December 31, 2023
(In millions of Korean Won)
￦
160,000
(410)
159,590
￦
74
74
(2) As of December 31, 2023, the conditions of hybrid bond that HYUNDAI CARD CO., LTD., a subsidiary of the
Company issued are as follows.
Maturity
Thirty years (Maturity extension is possible according to the issuer's decision
Description
upon maturity)
Issue date ~ July 12, 2028 : An annual fixed interest rate 6%
Increase of 2% after five years which is limited to one time only in accordance with
Step-up clause
Three months, optional postponement of payment
Repayment before maturity by issuer is available after five years from issue date
Interest rate
Interest payment
condition
Others
27. SALES:
(1) Sales for the years ended December 31, 2023 and 2022 are as follows.
Description
2023
2022
Sales of goods
Rendering of services
Royalties
Financial services revenue
Revenue related to construction contracts
Others
￦
￦
(In millions of Korean Won)
138,208,356 ￦
4,389,945
226,785
15,610,287
3,455,105
773,101
162,663,579 ￦
120,760,624
3,562,531
260,034
13,764,122
3,099,326
704,832
142,151,469
(2) As of December 31, 2023, the aggregate transaction price allocated to the unsatisfied (or partially unsatisfied)
performance obligation that is expected to be recognized as revenue in future periods is as follows.
Description
Within a year
After a year
(In millions of Korean Won)
Deferred revenue and others
￦
2,356,687 ￦
3,956,403
28. SELLING AND ADMINISTRATIVE EXPENSES:
Selling and administrative expenses for the years ended December 31, 2023 and 2022 are as follows.
Description
Selling expenses:
Export expenses
Overseas market expenses
Advertisements and sales promotion
Sales commissions
Expenses for warranties
Transportation expenses
Administrative expenses:
Payroll
Post-employment benefits
Welfare expenses
Service charges
Research
Others
2023
2022
(In millions of Korean Won)
89,186 ￦
415,139
3,419,523
1,047,374
2,303,658
110,129
7,385,009
3,770,106
144,828
622,375
2,014,392
2,163,445
2,257,340
10,972,486
18,357,495 ￦
78,807
443,923
3,102,640
909,093
4,345,078
101,995
8,981,536
3,259,693
173,367
544,626
1,662,880
1,759,707
2,065,163
9,465,436
18,446,972
￦
￦
75
75
29. GAIN (LOSS) ON INVESTMENTS IN JOINT VENTURES AND ASSOCIATES:
Gain (loss) on investments in joint ventures and associates for the years ended December 31, 2023 and 2022 is as
follows.
Description
Gain on share of earnings of equity-accounted investees, net
Gain on disposals of investments in associates
Impairment loss on investments in associates
2023
2022
(In millions of Korean Won)
￦
￦
2,489,940 ￦
90,664
(109,671)
2,470,933 ￦
1,636,824
63,992
(143,186)
1,557,630
30. FINANCE INCOME AND EXPENSES:
(1) Finance income for the years ended December 31, 2023 and 2022 is as follows.
Description
Interest income
Gain on foreign exchange transactions
Gain on foreign currency translation
Dividend income
Gain on derivatives
Others
2023
2022
(In millions of Korean Won)
997,655 ￦
166,513
275,411
79,127
33,769
7,063
1,559,538 ￦
594,077
146,066
146,247
44,533
18,511
36,459
985,893
￦
￦
(2) Finance expenses for the years ended December 31, 2023 and 2022 are as follows.
Description
Interest expenses
Loss on foreign exchange transactions
Loss on foreign currency translation
Loss on derivatives and others
￦
2023
2022
(In millions of Korean Won)
557,532 ￦
152,264
204,700
56,204
523,407
77,214
255,973
23,044
879,638
￦
970,700 ￦
31. OTHER INCOME AND EXPENSES:
(1) Other income for the years ended December 31, 2023 and 2022 is as follows.
Description
Gain on foreign exchange transactions
Gain on foreign currency translation
Gain on disposals of PP&E
Commission income
Rental income
Others
2023
2022
(In millions of Korean Won)
￦
￦
686,182 ￦
476,230
42,185
15,957
104,676
457,103
1,782,333 ￦
756,417
437,298
49,280
18,335
97,905
571,679
1,930,914
76
76
(2) Other expenses for the years ended December 31, 2023 and 2022 are as follows.
Description
Loss on foreign exchange transactions
Loss on foreign currency translation
Loss on disposals of PP&E
Donations
Others
2023
2022
(In millions of Korean Won)
￦
￦
614,114 ￦
483,390
262,940
178,367
811,532
2,350,343 ￦
700,908
556,152
176,146
89,421
715,629
2,238,256
32. EXPENSES BY NATURE:
Expenses by nature for the years ended December 31, 2023 and 2022 are as follows.
Description
Changes in inventories
Raw materials and merchandise used
Employee benefits
Depreciation
Amortization
Others
Total (*)
￦
￦
2022
2023
(In millions of Korean Won)
(2,569,963) ￦
93,205,106
12,078,050
3,283,730
1,662,765
42,227,333
149,887,021 ￦
(1,677,346)
80,682,374
10,637,811
3,180,687
1,866,935
39,874,336
134,564,797
(*) Sum of cost of sales, selling and administrative expenses and other expenses in the consolidated statements of income.
33. EARNINGS PER COMMON STOCK AND PREFERRED STOCK:
Basic earnings per common stock and preferred stock are computed by dividing profit available to common stock and
preferred stock by the weighted-average number of common stock and preferred stock outstanding during the year. The
Group does not compute diluted earnings per common stock for the years ended December 31, 2023 and 2022, since there
are no dilutive items during the years.
Basic earnings per common stock and preferred stock for the years ended December 31, 2023 and 2022 are computed as
follows.
(1) Basic earnings per common stock and preferred stock attributable to the owners of the Company.
For the year ended December 31, 2023
Weighted-
average number
of shares
outstanding (*1)
Profit
attributable to
share
Basic
earnings
per share
For the year ended December 31, 2022
Profit
attributable to
share
Weighted-
average number
of shares
outstanding (*1)
Basic
earnings
per share
Description
Common stock
1st Preferred stock (*2)
2nd Preferred stock
3rd Preferred stock
￦ 9,271,196
998,401
1,584,846
107,274
(In millions of Korean Won, except per share amounts)
202,857,418 ￦ 45,703 ￦ 5,696,576
618,639
982,679
66,470
21,926,126
34,767,027
2,355,874
45,535
45,585
45,535
199,735,258 ￦ 28,521
28,207
28,257
28,207
21,932,141
34,775,916
2,356,491
(*1) Weighted-average number of shares outstanding includes the effects of treasury stock transactions.
(*2) 1st preferred stock meets the definition of ‘ordinary shares’ as defined in KIFRS 1033 ‘Earnings per Share’.
77
77
(2) Basic earnings per common stock and preferred stock from continuing operations attributable to the owners of the
Company.
Description
For the year ended December 31, 2023
Weighted-
average number
of shares
outstanding (*1)
Profit
attributable to
share
Basic
earnings
per share
For the year ended December 31, 2022
Profit
attributable to
share
Weighted-
average number
of shares
outstanding (*1)
Basic
earnings
per share
Common stock
1st Preferred stock (*2)
2nd Preferred stock
3rd Preferred stock
￦ 9,660,450
1,040,273
1,651,240
111,773
(In millions of Korean Won, except per share amounts)
202,857,418 ￦ 47,622 ￦ 5,813,175
631,279
1,002,722
67,828
21,926,126
34,767,027
2,355,874
47,445
47,495
47,445
199,735,258 ￦ 29,105
28,783
28,833
28,783
21,932,141
34,775,916
2,356,491
(*1) Weighted-average number of shares outstanding includes the effects of treasury stock transactions.
(*2) 1st preferred stock meets the definition of ‘ordinary shares’ as defined in KIFRS 1033 ‘Earnings per Share’.
(3) Basic earnings per common stock and preferred stock from discontinued operations attributable to the owners of the
Company.
Description
For the year ended December 31, 2023
Weighted-
average number
of shares
outstanding (*1)
Profit
attributable to
share
Basic
earnings
per share
For the year ended December 31, 2022
Profit
attributable to
share
Weighted-
average number
of shares
outstanding (*1)
Basic
earnings
per share
Common stock
1st Preferred stock (*2)
2nd Preferred stock
3rd Preferred stock
￦ (389,254)
(41,872)
(66,394)
(4,499)
202,857,418 ￦ (1,919) ￦ (116,599)
(12,640)
(20,043)
(1,358)
21,926,126
34,767,027
2,355,874
(1,910)
(1,910)
(1,910)
199,735,258 ￦
21,932,141
34,775,916
2,356,491
(584)
(576)
(576)
(576)
(In millions of Korean Won, except per share amounts)
(*1) Weighted-average number of shares outstanding includes the effects of treasury stock transactions.
(*2) 1st preferred stock meets the definition of ‘ordinary shares’ as defined in KIFRS 1033 Earnings per Share.
78
78
34. INCOME TAX EXPENSE:
(1) The components of income tax expense for the years ended December 31, 2023 and 2022 are as follows.
Description
Current tax expense
Adjustments recognized in the current year in relation to
the prior years
Changes in deferred taxes relating to
Temporary differences
Tax losses and tax credits
Items that are charged or credited directly to equity
Effect of foreign exchange differences and others
Income tax expense
Income tax expense on continuing operations
Income tax expense (benefit) on discontinued operations
2023
2022
(In millions of Korean Won)
￦
3,696,557 ￦
2,705,459
326,989
66,052
(541,666)
585,233
95,778
442,093
4,604,984 ￦
4,626,640
(21,656)
(623,348)
949,285
(186,176)
53,057
2,964,329
2,979,168
(14,839)
￦
(*) The Group has identified potential exposures in a limited number of countries where transitional Safe Harbor
regulations are not applied and the Pillar Two effective tax rate is expected to be less than 15% for reasons such as
currently receiving corporate tax reductions as investment incentives. The Group expects to be subject to additional
income tax after 2024 due to the impact of Pillar Two Model Rules, and its impact analysis is underway.
(2) The reconciliation from profit before income tax to income tax expense for the years ended December 31, 2023
and 2022 are as follows.
Description
Profit before income tax from continuing operations
Profit before income tax from discontinued operations
Profit before income tax
Income tax expense calculated at the applicable
tax rates of 28.1% in 2023 and 27.2% in 2022
Adjustments:
Non-taxable income
Non-deductible expenses
Tax credits
Others
Income tax expense
Income tax expense on continuing operation
Income tax expense (benefit) on discontinued operation
Effective tax rate
￦
2022
2023
(In millions of Korean Won)
17,618,662 ￦
(741,376)
16,877,286
11,181,471
(233,528)
10,947,943
4,739,431
2,973,667
(1,026,127)
127,372
(366,809)
1,131,117
(134,447)
4,604,984 ￦
4,626,640
(21,656)
27.3%
(91,601)
399,296
(528,986)
211,953
(9,338)
2,964,329
2,979,168
(14,839)
27.1%
￦
79
79
(3) The changes in deferred tax assets (liabilities) for the year ended December 31, 2023 are as follows.
Description
Beginning
of the year
End
of the year
Provisions
Financial assets measured at FVPL
Financial assets measured at FVOCI
Investment of subsidiaries, associates and joint
ventures
Derivatives
PP&E
Accrued income
Gain (loss) on foreign currency translation, net
Others
Carryforward of tax losses and tax credits
￦
￦
Changes
(In millions of Korean Won)
(357,380) ￦
(11,361)
(25,329)
3,275,658 ￦
1,539
(7,990)
(1,996,502)
(95,052)
(5,801,434)
(18,767)
(333)
470,172
(4,172,709)
2,382,277
(1,790,432) ￦
97,850
53,186
489,881
1,728
(7,127)
300,218
541,666
(585,233)
(43,567) ￦
2,918,278
(9,822)
(33,319)
(1,898,652)
(41,866)
(5,311,553)
(17,039)
(7,460)
770,390
(3,631,043)
1,797,044
(1,833,999)
The changes in deferred tax assets (liabilities) for the year ended December 31, 2022 are as follows.
Description
Beginning
of the year
End
of the year
￦
Provisions
Financial assets measured at FVPL
Financial assets measured at FVOCI
Investment of subsidiaries, associates and joint
ventures
Derivatives
PP&E
Accrued income
Gain (loss) on foreign currency translation, net
Others
Carryforward of tax losses and tax credits
￦
Changes
(In millions of Korean Won)
451,449 ￦
308
113,194
(418,369)
2,824,209 ￦
1,231
(121,184)
(1,578,133)
(1,516)
(5,861,743)
(15,840)
(136)
(42,945)
(4,796,057)
3,331,562
(1,464,495) ￦
(93,536)
60,309
(2,927)
(197)
513,117
623,348
(949,285)
(325,937) ￦
3,275,658
1,539
(7,990)
(1,996,502)
(95,052)
(5,801,434)
(18,767)
(333)
470,172
(4,172,709)
2,382,277
(1,790,432)
(4)
Income taxes relating to items that are charged or credited directly to equity for the years ended December 31,
2023 and 2022 are as follows.
Description
Gain on disposal of treasury stocks
Loss (gain) on financial assets measured at FVOCI, net
Loss (gain) on valuation of cash flow hedge derivatives, net
Remeasurements of defined benefit plans
Changes in retained earnings of equity-accounted investees, net
2023
2022
(In millions of Korean Won)
(26,580) ￦
(28,371)
76,307
98,464
(24,042)
95,778 ￦
(66,131)
97,671
(78,505)
(152,166)
12,955
(186,176)
￦
￦
(5) The amount of temporary differences associated with investments in subsidiaries, joint ventures and associates, for
which deferred tax liabilities are not recognized, are ￦ 8,439,636 million and ￦ 8,948,716 million as of December
31, 2023 and 2022, respectively.
80
80
35. RETIREMENT BENEFIT PLAN:
(1) Expenses recognized in relation to defined contribution plans for the years ended December 31, 2023 and 2022 are as
follows.
Description
Paid-in cash
Recognized liability
2023
2022
(In millions of Korean Won)
￦
￦
16,783
4,215
20,998
￦
￦
14,377
4,754
19,131
(2) The significant actuarial assumptions used by the Group as of December 31, 2023 and December 31, 2022 are as
follows.
Description
Discount rate (*)
Rate of expected future salary increase
December 31, 2023
5.77%
4.88%
December 31, 2022
5.29%
4.05%
(*) The Group applied the market yields of high-quality corporate bonds (AA+) and others as of December 31, 2023 as
the discount rate to discount the defined benefit obligation to the present value, and the same discount rate was applied
as the expected return rate when calculating interest income on plan assets.
Employee turnover and mortality assumptions used for actuarial valuation are based on the economic conditions and
statistical data of each country where entities within the Group are located.
(3) The amounts recognized in the consolidated statements of financial position related to defined benefit plans as of
December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Present value of defined benefit obligations
Fair value of plan assets
Net defined benefit liabilities
Net defined benefit assets
￦
￦
(In millions of Korean Won)
6,538,236 ￦
(6,949,149)
(410,913) ￦
77,268
(488,181)
6,033,698
(6,809,339)
(775,641)
61,861
(837,502)
81
81
(4) Changes in net defined benefit assets and liabilities for the year ended December 31, 2023 are as follows.
Description
Present value of defined
benefit obligations
Fair value of
plan assets
Net defined benefit
liabilities
￦
41,334
6,538,236 ￦
(81,652)
(6,949,149) ￦
Changes in net defined benefit assets and liabilities for the year ended December 31, 2022 are as follows.
Description
Present value of defined
benefit obligations
Fair value of
plan assets
Net defined benefit
liabilities
￦
Beginning of the year
Current service cost
Interest expenses (income)
Past service cost
Remeasurements:
Return on plan assets
Actuarial gains and losses arising
from changes in demographic
assumptions
Actuarial gains and losses arising
from changes in financial
assumptions
Actuarial gains and losses arising
from experience adjustments and
others
Contributions
Benefits paid
Transfers in (out)
Effect of foreign exchange
differences and others
End of the year
￦
Beginning of the year
Current service cost
Interest expenses (income)
Past service cost
Remeasurements:
Return on plan assets
Actuarial gains and losses arising
from changes in demographic
assumptions
Actuarial gains and losses arising
from changes in financial
assumptions
Actuarial gains and losses arising
from experience adjustments and
others
Contributions
Benefits paid
Transfers in (out)
Effect of foreign exchange
differences and others
End of the year
(In millions of Korean Won)
6,033,698 ￦
510,688
275,326
(223)
6,819,489
(6,809,339) ￦
-
(332,475)
-
(7,141,814)
(775,641)
510,688
(57,149)
(223)
(322,325)
-
41,324
41,324
2,855
220,043
146,370
369,268
-
(694,707)
2,852
-
-
-
41,324
(351,255)
586,934
(2,686)
2,855
220,043
146,370
410,592
(351,255)
(107,773)
166
(40,318)
(410,913)
(In millions of Korean Won)
6,580,593 ￦
575,608
173,934
(33)
7,330,102
(6,721,149) ￦
-
(185,313)
-
(6,906,462)
(140,556)
575,608
(11,379)
(33)
423,640
-
168,474
168,474
255,197
(1,002,183)
35,038
(711,948)
-
(583,748)
1,946
-
-
255,197
(1,002,183)
-
168,474
(584,701)
483,747
(1,454)
35,038
(543,474)
(584,701)
(100,001)
492
28,403
(775,641)
￦
(2,654)
6,033,698 ￦
31,057
(6,809,339) ￦
82
82
(5) The sensitivity analysis based on reasonably possible changes of the significant assumptions as of December 31,
2023 and December 31, 2022, while all the other assumptions are retained, is as follows.
Effect on the net defined benefit liabilities
December 31, 2023
December 31, 2022
Description
Increase by 1%
Decrease by 1% Increase by 1% Decrease by 1%
(In millions of Korean Won)
(In millions of Korean Won)
Discount rate
Rate of expected future salary increase
￦
(566,791) ￦
265,995
291,717 ￦
(554,161)
(367,700) ￦
400,804
419,353
(360,074)
(6) The fair value of the plan assets as of December 31, 2023 and December 31, 2022 is as follows.
Description
December 31, 2023
December 31, 2022
Insurance instruments
Others
￦
￦
(In millions of Korean Won)
6,946,600
2,549
6,949,149
￦
￦
6,806,690
2,649
6,809,339
(7) The Group expects to pay contribution of approximately ￦ 600,102 million to the plan in 2024 and the weighted
average duration of the defined benefit obligation as of December 31, 2023 is 7.9 years.
83
83
36. CASH GENERATED FROM OPERATIONS:
(1) Cash generated from operations for the years ended December 31, 2023 and 2022 is as follows.
Profit for the year
Adjustments:
Description
2023
(In millions of Korean Won)
2022
￦
12,272,301
￦
7,983,614
Retirement benefit costs
Depreciation
Amortization of intangible assets
Provision for warranties
Income tax expense
Gain(loss) on foreign currency translation, net
Loss on disposals of PP&E, net
Interest income, net
Gain on share of earnings of equity-accounted investees, net
Cost of sales from financial services, net
Others
Changes in operating assets and liabilities:
Increase in trade notes and accounts receivable
Decrease in other receivables
Decrease (increase) in other financial assets
Increase in inventories
Increase in other assets
Increase(decrease) in trade notes and accounts payable
Increase in other payables
Increase in other liabilities
Decrease in other financial liabilities
Decrease in net defined benefit assets(liabilities)
Payment of severance benefits
Decrease in provisions
Changes in financial services receivables
Investment in operating leases
Others
Cash generated from operations
￦
457,531
3,283,730
1,662,765
1,926,790
4,626,640
(63,551)
220,755
(440,123)
(2,489,940)
9,399,599
2,608,162
21,192,358
(99,422)
488,118
(546,587)
(3,249,884)
(1,152,521)
(8,816)
992,329
2,577,771
(12,623)
(340,839)
(107,773)
(4,388,292)
(17,743,124)
(6,571,935)
(201,466)
(30,365,064)
3,099,595
￦
568,950
3,180,687
1,866,935
4,005,842
2,979,168
228,580
126,866
(70,670)
(1,636,824)
7,439,938
1,566,466
20,255,938
(1,325,728)
622,992
1,423,023
(2,721,100)
(83,879)
1,146,082
2,186,971
2,086,192
(1,597)
(573,780)
(100,001)
(3,796,018)
(8,457,539)
(4,689,798)
361,523
(13,922,657)
14,316,895
(2) Major non-cash transactions not stated on the consolidated statements of cash flows from investing and financing
activities for the years ended December 31, 2023 and 2022 are as follows.
Description
2022
2023
(In millions of Korean Won)
Reclassification of the current portion of long-term debt
and debentures
￦
27,152,167
￦
Reclassification of construction-in-progress to PP&E
Reclassification of construction-in-progress to intangible assets
3,980,857
367,785
24,891,478
3,525,985
186,210
84
84
(3) Changes in liabilities arising from financial activities for the year ended December 31, 2023 are as follows.
Beginning
of the year
Cash flows from
financing
activities
Reclassified to
current portion
Effect of
exchange rate
changes
Present value
discounts
Others(*)
End of
the year
(In millions of Korean Won)
Changes from non-cash transactions
￦ 36,940,611 ￦ (29,949,836) ￦ 27,152,167 ￦
473,380 ￦ (24,521) ￦ (447,095) ￦ 34,144,706
12,285,149
62,960,060
12,901,677
28,578,150
(7,954,787)
(19,197,380)
202,221
613,213
118,791
44,328
16,709
35,122
17,569,760
73,033,493
Description
Short-term
borrowings
(including
current
portion)
Long-term
debts
Debentures
(*) Others include transfers from or to other accounts and others.
Changes in liabilities arising from financial activities for the year ended December 31, 2022 are as follows.
Changes from non-cash transactions
Beginning
of the year
Cash flows from
financing
activities
Reclassified to
current portion
Effect of
exchange rate
changes
Present
value
discounts
Others(*)
End of
the year
(In millions of Korean Won)
￦ 33,666,738 ￦ (22,985,947) ￦ 24,891,478 ￦
684,515 ￦ 56,738 ￦ 627,089 ￦ 36,940,611
10,667,731
63,458,809
6,925,739
16,381,780
(5,432,473)
(19,459,005)
115,999
2,524,323
7,656
18,593
497
35,560
12,285,149
62,960,060
Description
Short-term
borrowings
(including
current
portion)
Long-term
debts
Debentures
(*) Others include transfers from or to other accounts and others.
37. RISK MANAGEMENT:
(1) Capital risk management
The Group manages its capital to maintain an optimal capital structure for maximizing profit of its shareholder and
reducing the cost of capital. Debt to equity ratio calculated as total liabilities divided by total equity is used as an index
to manage the Group’s capital. The overall capital risk management policy is consistent with that of the prior period.
Debt to equity ratios as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Total liabilities
Total equity
Debt-to-equity ratio
(2) Financial risk management
￦
(In millions of Korean Won)
180,653,915 ￦
101,809,440
177.4%
164,845,917
90,896,545
181.4%
The Group is exposed to various financial risks such as market risk (foreign exchange risk, interest rate risk and price
risk), credit risk and liquidity risk related to its financial instruments. The purpose of risk management of the Group is to
identify potential risks related to financial performance and reduce, eliminate and avoid those risks to an acceptable level
of risks to the Group. Overall, the Group’s financial risk management policy is consistent with the prior period policy.
85
85
1) Market risk
The Group is mainly exposed to financial risks arising from changes in foreign exchange rates and interest rates.
Accordingly, the Group uses financial derivative contracts to hedge and manage its interest rate risk and foreign currency
risk.
a) Foreign exchange risk management
The Group is exposed to various foreign exchange risks by making transactions in foreign currencies. The Group is
mainly exposed to foreign exchange risk in USD, EUR, JPY and others.
The Group manages foreign exchange risk by matching the inflow and the outflow of foreign currencies according to
each currency and maturity, and by adjusting the foreign currency settlement date based on its exchange rate forecast.
The Group uses foreign exchange derivatives, such as currency forward, currency swap, and currency option, as hedging
instruments. However, speculative foreign exchange trade on derivative financial instruments is prohibited.
Sensitivity analysis for a 5% change in exchange rate of the functional currency against each foreign currency on profit
before income tax as of December 31, 2023 is as follows.
Foreign Currency
Increase by 5%
Decrease by 5%
Foreign Exchange Rate Sensitivity
USD
EUR
JPY
￦
(In millions of Korean Won)
102,337 ￦
13,707
(959)
(102,337)
(13,707)
959
b) Interest rate risk management
The Group has borrowings with fixed or variable interest rates. Also, the Group is exposed to interest rate risk arising
from financial instruments with variable interest rates. To manage the interest rate risk, the Group maintains an appropriate
balance between borrowings with fixed and variable interest rates for short-term borrowings and has a policy to borrow
funds with fixed interest rates to avoid the future cash flow fluctuation risk for long-term debt if possible. The Group
manages its interest rate risk through regular assessments of the change in market conditions and the adjustments in nature
of its interest rates.
Sensitivity analysis for a 1% change in interest rates on profit before income tax as of December 31, 2023 is as follows.
Accounts
Cash and cash equivalents
Short-term and long-term financial
instruments
Borrowings and debentures
Interest Rate Sensitivity
Increase by 1%
Decrease by 1%
(In millions of Korean Won)
￦
33,650 ￦
22,948
(134,529)
(33,650)
(22,948)
134,529
The Company’s subsidiaries, HYUNDAI CARD CO., LTD. and HYUNDAI CAPITAL SERVICES, INC. that are
operating financial business, are managing interest rate risk by utilizing value at risk (VaR). VaR is defined as a threshold
value which is a statistical estimate of the maximum potential loss based on normal distribution. As of December 31,
2023 and December 31, 2022, the amounts of interest rate risk measured at VaR are ￦146,303 million and ￦135,241
million, respectively.
c) Price risk
The Group is exposed to market price fluctuation risk arising from equity instruments. As of December 31, 2023, the
amounts of financial assets measured at FVPL and financial assets measured at FVOCI are ￦54,853 million
and ￦2,377,754 million, respectively.
86
86
2) Credit risk
The Group is exposed to credit risk when a counterparty defaults on its contractual obligation resulting in a financial loss
for the Group. The Group operates a policy to transact with counterparties who only meet a certain level of credit rating
which was evaluated based on the counterparty’s financial conditions, default history, and other factors. The credit risk
in the liquid funds and derivative financial instruments is limited as the Group transacts only with financial institutions
with high credit-ratings assigned by international credit-rating agencies. Except for the guarantee of indebtedness
discussed in Note 39, the book value of financial assets in the consolidated financial statements represents the maximum
amounts of exposure to credit risk.
In addition, the Company’s subsidiaries, HYUNDAI CARD CO., LTD. and HYUNDAI CAPITAL SERVICES, INC., that
operate financial business, assess their credit stability according to their internal credit ratings and manage credit risk
concentrations by debtor. These subsidiaries provide loan agreements with a limit to a large number of customers, and as
of December 31, 2023, the unused limit is ￦746,970 million for HYUNDAI CAPITAL SERVICES, INC. and ￦86,275,519
million for HYUNDAI CARD CO., LTD. and as of December 31, 2023, credit risk concentration relates to 86% for
households and 14% for companies.
3) Liquidity risk
The Group manages liquidity risk based on maturity profile of its funding. The Group analyses and reviews actual cash
outflow and its budget to match the maturity of its financial liabilities to that of its financial assets.
The Group retains an appropriate level of deposit to cope with uncertainty caused by the inherent nature of the industry
which is sensitive to economic fluctuation and to invest in R&D constantly. In addition, the Group has agreements with
financial institutions related to trade financing and overdraft to mitigate any significant unexpected market deterioration.
Also, the Group continues to strengthen its credit rates to secure a stable financing capability.
The Group’s maturity analysis of its non-derivative liabilities according to their remaining contract period before maturity
as of December 31, 2023 is as follows.
Description
Non-interest-
Remaining contract period
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)
bearing liabilities
￦
22,674,125 ￦
664,726 ￦
- ￦ 23,338,851
Interest-bearing
liabilities
Lease liabilities
Financial
guarantee
38,896,754
262,251
90,865,948
647,038
6,960,759
351,332
136,723,461
1,260,621
314,471
63,421
79,205
457,097
The maturity analysis is based on the non-discounted cash flows and the earliest maturity date at which payments, i.e.
both principal and interest, should be made.
(3) Derivative instruments
The Group enters into derivative instrument contracts such as currency forwards, currency options, currency swaps and
interest swaps to hedge its exposure to changes in foreign exchange rate or interest rate.
As of December 31, 2023 and December 31, 2022, the Group recognized an accumulative net profit of ￦34,489 million
and ￦183,776 million, respectively, in accumulated other comprehensive income or loss, for effective cash flow hedging
instruments.
The longest period in which the forecasted transactions are expected to occur is within 99 months as of December 31,
2023.
87
87
For the years ended December 31, 2023 and 2022, the Group recognized a net profit of ￦133,719 million and ￦391,801
million in profit or loss (before tax), respectively, which resulted from the ineffective portion of its cash flow hedging
instruments and changes in the valuation of its other non-hedging derivative instruments and others.
In addition, the Company’s subsidiaries, HYUNDAI CARD CO., LTD. and HYUNDAI CAPITAL SERVICES, INC., that are
engaged in financial services business, use interest rate swaps and currency swaps to hedge the risks of future cash flows,
which related to borrowings, debentures and others, due to market interest rate fluctuations and exchange rate fluctuations.
As of December 31, 2023, the average hedge ratio is 100%.
38. RELATED-PARTY AND OTHER TRANSACTIONS:
The transactions and balances of receivables and payables within the Group are wholly eliminated in the preparation of
consolidated financial statements of the Group.
(1) For the year ended December 31, 2023, significant transactions arising from operations between the Group and
related parties or affiliates as designated by the Monopoly Regulation and Fair Trade Act of the Republic of Korea
(“the Act”) are as follows.
Entity with
significant
influence over
the Company
and its
subsidiaries
Joint ventures
and associates
￦
Description
Hyundai MOBIS Co., Ltd.
Mobis Alabama, LLC
Mobis Automotive Czech s.r.o.
Mobis India, Ltd.
Mobis Parts America, LLC
Mobis Module CIS, LLC.
Mobis Parts Europe N.V.
Others
Kia Corporation
Kia Russia & CIS, LLC
Kia Slovakia s.r.o..
Kia Georgia, Inc.
BHMC
HMGC
Hyundai WIA Corporation
Others
Other related parties
Affiliates by the Act
Sales/proceeds
Purchases/expenses
Sales
Others
Purchases
Others
(In millions of Korean Won)
590,173 ￦
253,907
12
18,278
191,160
67
19,131
85,447
1,685,353
220
92,908
842,050
193,257
33,571
286,611
958,681
56,893
981,812
16,134 ￦ 14,813,812 ￦
-
2,008
2,854
4,299
273
2,426
1,784
968,903
32
16
3,550
-
818
1,349
77,363
4,028
104,267
2,387,097
2,962,398
1,433,394
1,604,058
2,015
646,881
1,548,323
648,536
-
759,649
154
33,075
93,268
919,024
5,892,019
1,976
11,608,499
118,239
30,426
18,684
27,999
1,278
-
2,420
12,200
719,547
-
-
-
-
63,293
9,264
3,541,756
9
1,460,116
88
88
For the year ended December 31, 2022, significant transactions arising from operations between the Group and related
parties or affiliates by the Act are as follows.
Entity with
significant
influence over
the Company
and its
subsidiaries
Joint ventures
and associates
Description
Hyundai MOBIS Co., Ltd.
Mobis Alabama, LLC
Mobis Automotive Czech s.r.o.
Mobis India, Ltd.
Mobis Parts America, LLC
Mobis Module CIS, LLC.
Mobis Parts Europe N.V.
Others
Kia Corporation
Kia Russia & CIS, LLC
Kia Slovakia s.r.o..
Kia Georgia, Inc.
BHMC
HMGC
Hyundai WIA Corporation
Others
Other related parties
Affiliates by the Act
Sales/proceeds
Purchases/expenses
Sales
Others
Purchases
Others
(In millions of Korean Won)
￦
617,886 ￦
175,677
88
15,783
173,649
67
18,037
68,863
1,344,334
236,563
106,675
850,880
243,336
27,747
119,339
838,127
21,567
838,319
15,569 ￦ 12,246,389 ￦
152
745
3,237
4,140
376
1,993
1,480
781,710
7
338
1,017
-
1,773
913
65,143
3,755
121,880
1,952,641
2,441,059
1,310,317
1,528,014
88,339
622,583
1,499,679
576,677
29
706,944
42
28,184
44,864
1,039,973
5,922,155
2,531
10,962,515
74,457
6,392
24,371
3,340
825
2,791
1,064
9,582
749,322
-
1,751
-
-
52,023
10,837
2,079,207
7
1,152,633
(2) As of December 31, 2023, significant balances related to the transactions between the Group and related parties or
affiliates by the Act are as follows.
Entity with
significant
influence over
the Company
and its
subsidiaries
Joint ventures
and associates
Description
Hyundai MOBIS Co., Ltd.
Mobis Alabama, LLC
Mobis Automotive Czech s.r.o.
Mobis India, Ltd.
Mobis Parts America, LLC
Mobis Module CIS, LLC
Mobis Parts Europe N.V.
Others
Kia Corporation
Kia Russia & CIS, LLC
Kia Slovakia s.r.o.
Kia Georgia, Inc.
Kia America, Inc.
BHMC
HMGC
Hyundai WIA Corporation
Others
Other related parties
Affiliates by the Act
Receivables (*1,2)
Payables
Trade notes
and accounts
receivable
Other
receivables
and others
(In millions of Korean Won)
Trade notes
and accounts
payable
Other
payables
and others
￦
142,677 ￦
31,106
1,253
-
29,790
5
819
90,363
541,374
-
7,481
65,196
-
302,632
16,089
118,669
259,635
137
201,220
150,906 ￦ 2,248,687 ￦
-
830
-
26,986
85
149
2,250
422,304
50
138
51,650
240,582
14,681
23,602
13,229
181,298
-
65,233
157,597
210,894
160,011
123,415
7
52,525
72,019
78,946
-
55,158
-
-
24
373
144,310
718,951
20
1,173,602
459,196
-
511
-
-
-
44
18,361
145,081
141
246
34,214
16,877
27
27,900
25,746
994,901
326
484,603
(*1) The Group has recognized the loss allowance for the related parties' receivables in the amount of ￦608 million as of December 31,
2023 and the reversal of impairment loss is recognized in the amount of ￦349 million for the year ended December 31, 2023.
(*2) As of December 31, 2023, outstanding payment of ￦18,080 million pursuant to corporate purchase card agreement provided by
HYUNDAI CARD CO., LTD. is included. For the year ended December 31, 2023, the amounts spent and repaid are ￦420,695 million
and ￦426,207 million, respectively.
89
89
As of December 31, 2022, significant balances related to the transactions between the Group and related parties or
affiliates by the Act are as follows.
Entity with
significant
influence over
the Company
and its
subsidiaries
Joint ventures
and associates
Description
Hyundai MOBIS Co., Ltd.
Mobis Alabama, LLC
Mobis Automotive Czech s.r.o.
Mobis India, Ltd.
Mobis Parts America, LLC
Mobis Module CIS, LLC
Mobis Parts Europe N.V.
Others
Kia Corporation
Kia Russia & CIS, LLC
Kia Slovakia s.r.o.
Kia Georgia, Inc.
Kia America, Inc.
BHMC
HMGC
Hyundai WIA Corporation
Others
Other related parties
Affiliates by the Act
Receivables (*1,2)
Payables
Trade notes
and accounts
receivable
Other
receivables
and others
(In millions of Korean Won)
Trade notes
and accounts
payable
Other
payables
and others
￦
112,072 ￦
22,829
-
-
19,635
-
359
21,772
483,663
4
6,018
59,925
-
272,134
7,738
33,157
169,169
1,742
181,415
186,427 ￦ 2,631,460 ￦
-
9,924
1,462
95
71
1,328
949
383,401
24
163
33,682
10,568
14,411
23,734
7,449
125,220
44
68,799
148,988
240,666
176,609
113,577
804
49,254
115,791
103,109
-
55,100
-
-
-
5,133
171,098
699,974
13
1,242,171
453,605
411
-
22
-
-
-
6,847
111,663
-
319
30,404
19,943
57
23,306
28,850
1,058,827
344
423,944
(*1) The Group has recognized the loss allowance for the related parties' receivables in the amount of ￦958 million as of December
31, 2022 and the impairment loss is recognized in the amount of ￦749 million for the year ended December 31, 2022.
(*2) As of December 31, 2022, outstanding payment of ￦23,592 million pursuant to corporate purchase card agreement provided by
Hyundai Card Co., Ltd. is included. For the year ended December 31, 2022, the amounts spent and repaid are ￦426,510 million and
￦425,013 million, respectively.
(3) Significant fund transactions and equity contribution transactions for the year ended December 31, 2023 between
the Group and related parties are as follows.
Description
Lending
Collection
Borrowing
Repayment
Loans
Borrowings
Equity
contribution
Joint ventures and associates
€
(In thousands of USD Dollar and EUR Euro, In millions of Korean won)
68,600
$ 562,000 $
- ￦
565,000 ￦
3,425
-
￦
1,490,366
Significant fund transactions and equity contribution transactions for the year ended December 31, 2022 between
the Group and related parties are as follows.
Description
Lending
Loans
Equity
contribution
(In thousands of USD Dollar and Chinese Yuan, In millions of Korean won)
Borrowing
Repayment
Collection
Borrowings
Joint ventures and associates
￥
15,000
-
￦
$ 612,000
520
$
￦
600,000 ￦
4,252
2,002,648
For the years ended December 31, 2023 and 2022, the Group received dividends of ￦796,678 million and ￦503,634
million from related parties and affiliates by the Act, respectively and paid dividends of ￦590,131 million and
￦349,958 million to related parties, respectively. During 2023, the Group traded in other financial assets and others of
￦2,580,000 million with HYUNDAI MOTOR SECURITIES Co., Ltd., an associate of the Group. The Group has
other financial assets of ￦310,000 million in the consolidated statement of financial position as of December 31, 2023.
90
90
For the year ended December 31, 2023, HYUNDAI MOTOR SECURITIES CO., Ltd., an associate of the Group,
acquired bonds issued by the consolidated entities, HYUNDAI KEFICO CORPORATION and HYUNDAI ROTEM
COMPANY in amount of ￦15,000 million and ￦5,000 million, respectively, and there are no acquired bonds for the
year ended December 31, 2022.
(4) Compensation of registered and unregistered directors, who are considered to be the key management personnel
for the years ended December 31, 2023 and 2022 is as follows.
Description
2023
2022
Short-term employee salaries
Retirement benefit costs
Other long-term benefits
Share-based payment
￦
￦
(In millions of Korean Won)
374,972 ￦
50,004
1,518
155
426,649 ￦
347,185
53,146
1,289
-
401,620
(5) For the year ended December 31, 2023, the Group offers payment guarantee to related parties and affiliates by the
Act.
39. COMMITMENTS AND CONTINGENCIES:
(1) As of December 31, 2023, the payment guarantees provided to related parties by the Group, excluding the ones
provided to the Company’s subsidiaries, are as follows.
To associates
To others
Description
Domestic
Overseas (*)
￦
￦
(In millions of Korean Won)
28,910 ￦
734
29,644 ￦
216,119
229,651
445,770
(*) The guarantee amounts in foreign currencies are translated into Korean Won using the Base Rate announced by Seoul Money
Brokerage Services, Ltd. as of December 31, 2023.
(2) As of December 31, 2023, the Group is involved in domestic and foreign lawsuits as a defendant. In addition, the
Group is involved in lawsuits for product liabilities and others. The Group obtains insurance for potential losses
which may result from product liabilities and other lawsuits. In addition, as of December 31, 2023, the Group is
under investigation by related authorities in relation to the Theta 2 engine recall, and its results and impacts are
unpredictable. The Group is unable to estimate the outcome of the lawsuits and the amount and timing of outflows
of resources are uncertain. The Group expects that the impact on the consolidated financial statements will not be
material.
(3) As of December 31, 2023, a substantial portion of the Group’s PP&E is pledged as collateral for various loans and
leasehold deposits up to ￦797,185 million. In addition, the Group pledged certain bank deposits, checks and
promissory notes, including 213,466 shares of Kia Corporation, as collateral to financial institutions and others.
Certain receivables held by the Company’s foreign subsidiaries, such as financial services receivables, are pledged
as collateral for their borrowings.
(4) As of December 31, 2023, the Group has overdrafts, general loans, and trade-financing agreements with numerous
financial institutions including Kookmin Bank, with a combined limit of up to USD 33,700 million, and ￦5,756,500
million.
(5) As of December 31, 2023, HYUNDAI CAPITAL SERVICES, INC. and HYUNDAI CARD CO., LTD., subsidiaries
of the Company, have entered into agreements for certain borrowings including trigger clauses for the purpose of
credit enhancement. If the credit rating of HYUNDAI CAPITAL SERVICES, INC. and HYUNDAI CARD CO.,
LTD. falls below a certain level, this may result in early repayment of the borrowings or termination of the
agreements.
91
91
(6) As of December 31, 2023, the Company has a shareholder agreement with the third party investors regarding shares
of Hyundai Card Co., Ltd. and Hyundai Commercial Inc. This includes the call options that allow the Company to
buy shares from the investors and the put options that allow the investors to dispose of the shares to the Company.
(7) As of December 31, 2023, the Company has an agreement to dispose of its shares of Hyundai Motor Manufacturing
Rus LLC, which includes the call options clause that allow the Company to repurchase its shares. The call option
can be terminated under an uncontrollable situation, but can be maintained through efforts by both parties to address
such situation.
(8) In December 2019, the Company entered into an agreement to invest ￦1,408,220 million in the construction of new
Global Business Centre (GBC). As of December 31, 2023, the Company has recognized relevant liability in the
amount of ￦872,867 million in accordance with the agreement with the Seoul government to implement public
contributions relating to the new construction project.
(9) Financial instruments with restricted use for the years ended December 31, 2023 and 2022 are as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Short-term and long-term financial
instruments
Cash and cash equivalents
Other financial assets
40. SEGMENT INFORMATION:
￦
￦
1,674,550 ￦
537,734
2
2,212,286 ￦
1,464,888
631,954
2
2,096,844
(1) The Group’s operating segments include vehicle segment, finance segment and others segment. The vehicle segment
is engaged in the manufacturing and sale of motor vehicles. The finance segment operates vehicle financing, credit
card processing and other financing activities. Others segment includes the R&D, train manufacturing and other
activities.
(2) Sales and operating profit by operating segment for the year ended December 31, 2023 are as follows
Description
Vehicle
Finance
Others
Consolidation
adjustments
Total
For the year ended December 31, 2023
Net sales (*1)
Total sales (*2)
Operating profit
(In millions of Korean Won)
￦ 130,149,921 ￦ 22,401,156 ￦ 10,112,502 ￦
212,367,654
12,969,227
22,688,779
1,385,538
11,985,990
1,064,063
(84,378,844)
(291,927)
- ￦ 162,663,579
162,663,579
15,126,901
(*1) Net sales represent sales from external customers.
(*2) Total sales include inter-company sales within the Group.
Assets and liabilities by operating segment as of December 31, 2023 are as follows.
Description
Vehicle
Finance
Others
Consolidation
adjustments
Total
December 31, 2023
Total assets
Total liabilities
(In millions of Korean Won)
￦ 136,896,274 ￦ 154,437,674 ￦ 11,166,625 ￦ (20,037,218) ￦ 282,463,355
180,653,915
52,192,746
135,929,495
(13,265,539)
5,797,213
92
92
Sales and operating profit by operating segment for the year ended December 31, 2022 are as follows.
For the year ended December 31, 2022
Description
Vehicle
Finance
Others
(In millions of Korean Won)
Consolidation
adjustments
Total
Net sales (*1)
Total sales (*2)
Operating profit
￦ 113,341,992 ￦ 20,037,912 ￦
8,771,565 ￦
180,440,977
7,910,469
20,306,157
1,844,571
10,438,311
581,718
(69,033,976)
(511,830)
- ￦ 142,151,469
142,151,469
9,824,928
(*1) Net sales represent sales from external customers.
(*2) Total sales include inter-company sales within the Group.
Assets and liabilities by operating segment as of December 31, 2022 are as follows.
Description
Vehicle
Finance
Others
Consolidation
adjustments
Total
December 31, 2022
Total assets
Total liabilities
(In millions of Korean Won)
￦ 133,885,205 ￦ 135,124,336 ￦ 9,793,550 ￦ (23,060,629) ￦ 255,742,462
164,845,917
117,649,362
(17,552,529)
58,838,578
5,910,506
(3) Sales and operating profit by operating segment for the years ended December 31, 2023 and 2022 are as follows.
Description
For the year ended December 31,
2022
2023
(In millions of Korean Won)
Vehicle (*)
Sales
Cost of sales
Gross profit
Selling and administrative expenses
Operating profit
Loss on investments in joint ventures and
associates, net
Finance income and expenses
Other income and expenses
Profit before income tax
Income tax expense
Profit for the period
Finance (*)
Sales
Cost of sales
Gross profit
Selling and administrative expenses
Operating profit
Gain on investments in joint ventures and
associates, net
Finance income and expenses
Other income and expenses
Profit before income tax
Income tax expense
Profit for the period
Others (*)
Sales
Cost of sales
Gross profit
￦
212,367,654
183,498,370
28,869,284
15,900,057
12,969,227
(155,986)
4,649,392
(694,538)
16,768,095
4,112,864
12,655,231
22,688,779
18,936,621
3,752,158
2,366,620
1,385,538
49,618
1,474
11,907
1,448,537
215,121
1,233,416
11,985,990
10,248,626
1,737,364
180,440,977
156,494,938
23,946,039
16,035,570
7,910,469
(193,709)
1,931,640
(361,770)
9,286,630
1,788,790
7,497,840
20,306,157
16,158,877
4,147,280
2,302,709
1,844,571
88,737
8
47,026
1,980,342
801,286
1,179,056
10,438,311
9,362,208
1,076,103
￦
93
93
Selling and administrative expenses
Operating profit
Gain (loss) on investments in joint ventures and
associates, net
Finance income and expenses
Other income and expenses
Profit before income tax
Income tax expense
Profit for the period
Consolidation adjustments
Profit for the period from continuing operations
Profit attributable to:
Owners of the Company
Non-controlling interests
673,301
1,064,063
601
(3,418)
(57,041)
1,004,205
252,008
752,197
(1,648,822)
12,992,022
12,463,736
528,286
Loss for the period from discontinued operations
￦
(719,721)
￦
Loss attributable to:
Owners of the Company
Non-controlling interests
(502,020)
(217,701)
494,385
581,718
(147)
(36,465)
(3,627)
541,479
(4,988)
546,467
(1,021,060)
8,202,303
7,515,003
687,300
(218,689)
(150,639)
(68,050)
(*) The amounts are aggregates of entities belonging to each segment, unadjusted for elimination of intercompany transactions.
94
94
(4) Assets by operating segment as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Vehicle (*)
Current assets:
Cash and cash equivalents
Financial instruments
Inventories
Trade notes and accounts receivable
Other assets
Total current assets
Non-current assets:
Financial assets
Property, plant and equipment
Intangible assets
Investments in joint ventures and associates
Other assets
Total non-current assets
Total assets
Finance (*)
Current assets:
Cash and cash equivalents
Financial instruments
Inventories
Financial services receivables
Other assets
Total current assets
Non-current assets:
Financial assets
Property, plant and equipment
Intangible assets
Investments in joint ventures and associates
Financial services receivables
Investments in operating leases
Other assets
Total non-current assets
Total assets
Others (*)
Current assets:
Cash and cash equivalents
Financial instruments
Inventories
Trade notes and accounts receivable
Other assets
Total current assets
Non-current assets:
Financial assets
Property, plant and equipment
Intangible assets
Investments in joint ventures and associates
Other assets
Total non-current assets
Total assets
￦
￦
15,633,984
10,016,084
18,149,965
9,568,659
3,876,820
57,245,512
3,496,251
35,662,209
4,717,443
29,724,875
6,049,984
79,650,762
136,896,274
2,632,288
3,874,879
316,540
43,425,548
2,907,748
53,157,003
1,382,273
850,165
336,904
1,677,486
64,809,911
30,266,083
1,957,849
101,280,671
154,437,674
1,040,150
1,467,699
1,607,765
1,428,134
2,272,612
7,816,360
61,200
2,528,297
237,022
469
523,277
3,350,265
11,166,625
15,122,640
14,778,819
14,066,352
12,839,194
3,929,828
60,736,833
3,256,063
32,941,558
4,579,341
26,611,995
5,759,415
73,148,372
133,885,205
4,659,822
3,046,070
190,877
38,400,027
2,163,985
48,460,781
1,431,179
613,529
331,798
1,557,709
52,576,986
28,355,783
1,796,571
86,663,555
135,124,336
954,871
866,684
1,465,788
1,283,400
2,027,818
6,598,561
48,104
2,462,917
195,282
9,854
478,832
3,194,989
9,793,550
Consolidation adjustments
(20,037,218)
(23,060,629)
Total assets
￦
282,463,355
￦
255,742,462
95
95
Liabilities by operating segment as of December 31, 2023 and December 31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Vehicle (*)
Current liabilities:
Trade notes and accounts payable
Other payables
Borrowings and debentures
Provisions
Other liabilities
Total current liabilities
Non-current liabilities:
Borrowings and debentures
Net defined benefit liabilities
Provisions
Other liabilities
Total non-current liabilities
Total liabilities
Finance (*)
Current liabilities:
Other payables
Borrowings and debentures
Provisions
Other liabilities
Total current liabilities
Non-current liabilities:
Borrowings and debentures
Provisions
Other liabilities
Total non-current liabilities
Total liabilities
Others (*)
Current liabilities:
Trade notes and accounts payable
Other payables
Borrowings and debentures
Provisions
Other liabilities
Total current liabilities
Non-current liabilities:
Borrowings and debentures
Net defined benefit liabilities
Provisions
Other liabilities
Total non-current liabilities
Total liabilities
￦
￦
15,991,327
6,613,077
3,225,872
7,306,099
8,418,082
41,554,457
2,057,140
44,953
4,605,057
3,931,139
10,638,289
52,192,746
3,310,026
35,489,760
271,574
1,998,487
41,069,847
88,296,175
28,309
6,535,164
94,859,648
135,929,495
1,065,212
222,056
805,496
147,511
2,605,152
4,845,427
610,861
32,315
158,811
149,799
951,786
5,797,213
19,560,146
6,284,763
6,169,978
8,102,910
6,929,017
47,046,814
3,813,212
41,513
4,533,879
3,403,160
11,791,764
58,838,578
2,623,663
36,297,818
218,721
1,907,826
41,048,028
71,030,315
28,849
5,542,170
76,601,334
117,649,362
960,691
167,427
1,283,660
99,811
1,676,220
4,187,809
941,734
20,348
168,107
592,508
1,722,697
5,910,506
Consolidation adjustments
(13,265,539)
(17,552,529)
Total liabilities
￦
180,653,915
￦
164,845,917
96
96
Equity by operating segment as of December 31, 2023 and December 31, 2022 is as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Vehicle (*)
Capital stock
Capital surplus
Other capital items
Accumulated other comprehensive income (loss)
Retained earnings
Equity attributable to the owners of the Company
￦
Non-controlling interests
Total equity
Finance (*)
Capital stock
Capital surplus
Other capital items
Accumulated other comprehensive income (loss)
Retained earnings
Equity attributable to the owners of the Company
Non-controlling interests
Total equity
Others (*)
Capital stock
Capital surplus
Other capital items
Accumulated other comprehensive income (loss)
Retained earnings
Equity attributable to the owners of the Company
Non-controlling interests
Total equity
￦
13,814,222
4,457,140
(1,197,161)
(1,351,352)
68,980,668
84,703,517
11
84,703,528
3,483,947
446,317
158,830
979,767
13,439,318
18,508,179
-
18,508,179
1,021,187
1,411,438
(5,713)
253,353
2,720,065
5,400,330
(30,918)
5,369,412
11,476,313
4,380,670
(1,714,005)
(1,680,138)
62,583,774
75,046,614
13
75,046,627
3,479,326
446,317
299,240
947,192
12,302,899
17,474,974
-
17,474,974
1,023,526
576,152
-
207,417
2,103,887
3,910,982
(27,938)
3,883,044
Consolidation adjustments
(6,771,679)
(5,508,100)
Total equity
￦
101,809,440
￦
90,896,545
(*) The amounts are aggregates of entities belonging to each segment, unadjusted for elimination of intercompany transactions.
97
97
(5) Cash flows by operating segment for the years ended December 31, 2023 and 2022 are as follows.
Description
Vehicle (*)
Cash flows from operating activities:
Profit for the period
Adjustments
Changes in operating assets and liabilities
Interest received (paid)
Dividend received
Income tax paid
Net cash provided by operating activities
For the year ended December 31,
2022
2023
(In millions of Korean Won)
￦
12,413,564 ￦
9,281,038
(7,571,558)
1,002,974
3,652,323
(3,408,455)
15,369,886
Cash flows from investing activities:
Changes in financial instruments
Changes in investment in joint ventures and associates
Changes in property, plant and equipment intangible
assets
Others
Net cash used in investing activities
Cash flows from financing activities:
Changes in short-term borrowings
Changes in long-term debt and debentures
Proceeds from capital contribution from
non-controlling interest
Purchases of treasury stocks
Dividends paid
Others
Net cash used in financing activities
Effect of exchange rate changes on cash and
cash equivalents
Net increase in cash and cash equivalents
Finance (*)
Cash flows from operating activities:
Profit for the period
Adjustments
Changes in operating assets and liabilities
Interest received (paid)
Dividend received
Income tax paid
Net cash used in operating activities
Cash flows from investing activities:
Changes in financial instruments
Changes in investment in joint ventures and associates
Changes in property, plant and equipment intangible
assets
Others
Net cash used in investing activities
Cash flows from financing activities:
Changes in short-term borrowings
Changes in long-term debt and debentures
Proceeds from capital contribution from
non-controlling interest
Purchases of treasury stocks
Dividends paid
Others
Net cash provided by financing activities
98
(989,805)
(1,322,033)
(7,991,770)
3,154,743
(7,148,865)
(2,347,941)
(2,478,999)
2,321,964
-
(5,241,389)
(143,711)
(7,890,076)
180,399
511,344
1,233,415
7,342,101
(21,288,494)
(3,567,110)
175,598
(196,822)
(16,301,312)
-
(179,571)
(399,324)
(157,850)
(736,745)
(1,752,921)
16,965,023
4,626
(3,685)
(60,977)
(152,612)
14,999,454
7,267,737
11,189,692
(4,982,787)
425,270
1,678,864
(2,047,422)
13,531,354
1,604,166
(1,165,862)
(5,184,167)
335,666
(4,410,197)
(1,842,721)
(1,343,537)
1,568,678
(193,451)
(2,441,105)
(112,334)
(4,364,470)
(46,913)
4,709,774
1,179,056
8,662,786
(10,198,949)
(2,214,260)
1,303
(248,038)
(2,818,102)
-
(75,991)
(119,633)
(73,749)
(269,373)
1,972,663
4,880,932
2,153
-
(91,752)
(580,042)
6,183,954
98
Description
For the year ended December 31,
2022
2023
Effect of exchange rate changes on cash and
cash equivalents
Net increase (decrease) in cash and cash equivalents
Others (*)
Cash flows from operating activities:
Profit for the period
Adjustments
Changes in operating assets and liabilities
Interest received (paid)
Dividend received
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities:
Changes in financial instruments
Changes in investment in joint ventures and associates
Changes in property, plant and equipment intangible
assets
Others
Net cash used in investing activities
Cash flows from financing activities:
Changes in short-term borrowings
Changes in long-term debt and debentures
Proceeds from capital contribution from
non-controlling interest
Purchases of treasury stocks
Dividends paid
Others
Net cash used in financing activities
Effect of exchange rate changes on cash and
cash equivalents
Net increase in cash and cash equivalents
Consolidation adjustments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of the period
11,069
(2,027,534)
752,197
757,274
294,593
2,381
484
(288,565)
1,518,364
(346,989)
(440)
(429,153)
(240,543)
(1,017,125)
(136,018)
(571,389)
466,535
-
(130,644)
(52,331)
(423,847)
7,887
85,279
(267,349)
(1,698,260)
20,864,879
Cash and cash equivalents, end of the period
￦
19,166,619 ￦
22,023
3,118,502
546,411
439,872
439,871
(39,984)
108
(98,142)
1,288,136
(463,400)
(110)
(279,034)
263,808
(478,736)
(158,936)
(237,446)
-
-
(103)
(46,613)
(443,098)
(6,384)
359,918
(118,869)
8,069,325
12,795,554
20,864,879
(*) The amounts are aggregates of entities belonging to each segment, unadjusted for elimination of intercompany transactions.
99
99
(6) Sales by region based on where the Group’s entities are located for the years ended December 31, 2023 and 2022
are as follows.
For the year ended December 31, 2023
Description
Korea
North
America
Asia
Europe
Others
Total
Net sales
(In millions of Korean Won)
￦ 50,145,518 ￦ 66,423,274 ￦ 17,498,807 ￦ 23,809,444 ￦ 4,786,536 ￦ 162,663,579
For the year ended December 31, 2022
Description
Korea
North
America
Asia
Europe
Others
Total
Net sales
(In millions of Korean Won)
￦ 44,725,966 ￦ 55,941,024 ￦ 15,594,336 ￦ 21,741,766 ￦ 4,148,377 ￦ 142,151,469
(7) Non-current assets by region where the Group’s entities are located as of December 31, 2023 and 2022 are as follows.
Description
￦
Korea
North America
Asia
Europe
Others
Consolidation adjustments
Total (*)
￦
December 31,
2023
December 31
2022
(In millions of Korean Won)
35,311,711
4,751,419
3,021,481
1,806,587
656,502
45,547,700
(262,067)
45,285,633
￦
￦
33,935,698
3,211,607
2,835,528
2,012,856
623,992
42,619,681
(219,664)
42,400,017
(*) Total amount is the same as summation of PP&E, intangible assets and investment properties.
(8) There is no single external customer who represents 10% or more of the Group’s sales for years ended December 31,
2023 and 2022.
41. CONSTRUCTION CONTRACTS:
(1) Cost, income and loss and claimed construction from construction in progress as of December 31, 2023 and
December 31, 2022 are as follows.
Description
December 31,
2023
December 31,
2022
Accumulated cost
Accumulated income
Accumulated construction in process
Progress billing
Due from customers
Due to customers
Reserve (*)
￦
(In millions of Korean Won)
14,689,631
￦
937,245
15,626,876
16,071,925
1,191,078
1,636,127
62,197
14,866,771
336,083
15,202,854
15,006,020
1,413,886
1,217,052
77,915
(*) Reserve is recognized as long-term trade notes and accounts receivable in the consolidated financial statements.
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(2) Effects on profit or loss of current and future periods, due from customers related to changes in accounting estimates
of total contract revenue and total contract costs of ongoing contracts of Hyundai Rotem, a subsidiary of the Company,
as of December 31, 2023 are as follows.
Description
December 31, 2023
(In millions of Korean Won)
Changes in accounting estimates of total contract revenue
Changes in accounting estimates of total contract costs
Effects on profit or loss of current period
Effects on profit or loss of future periods
Changes in due from customers
Provision for construction loss
￦
535,107
229,894
(25,738)
330,951
(62,835)
39,470
Effects on profit or loss of current and future periods were calculated with estimated total contract costs and estimated
total contract revenue based on factors that are considered to be relevant from commencement of the contract to December
31, 2023. Total contract revenue and costs may change in future periods.
(3) There is no contract as of December 31, 2023, in which contract revenue is recognized using the percentage of
completion method based on the input method, that accounted for more than 5% of the Group's revenue in the prior
period.
42. BUSINESS COMBINATIONS:
The Group acquired 54.35% of shares in UB1st Co., Ltd. during the year ended December 31, 2023.
The accounting for the business combination at the acquisition date is as follows.
Description
Amount
(In millions of Korean Won)
Total considerations transferred
Non-controlling interests
Assets and liabilities acquired:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Fair value of identifiable net assets
Goodwill
￦
3,000
363
4,103
2,871
4,599
1,579
796
2,567
The amounts of sales and net loss of the acquiree since the acquisition date included in the consolidated statement of
income for the year ended December 31, 2023 are ￦6,089 million and ￦777 million, respectively.
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43. DISCONTINUED OPERATIONS:
The sale of Hyundai Motor Manufacturing Rus LLC (HMMR) was approved by the Board of Directors on December 19,
2023. The sale is expected to be completed within one year from December 31, 2023. As of December 31, 2023, Hyundai
Motor Manufacturing Rus LLC (HMMR) is classified as disposal group and discontinued operation.
Operating results of Hyundai Motor Manufacturing Rus LLC (HMMR) for the years ended December 31, 2023 and 2022
are as follows.
Description
Sales
Cost of sales
Gross profit
Selling and administrative expenses
Operating profit
Gain on investments in joint ventures and
associates, net
Finance income
Finance expenses
Other income
Other expenses
Impairment loss remeasured at fair value
Profit before income tax
Income tax expense
Loss for the period from discontinued operations
￦
￦
For the year ended December 31,
2022
2023
(In millions of Korean Won)
41,244
106,235
(64,991)
(8,401)
(56,590)
1,297
32,638
128,420
105,750
65,920
630,131
(741,376)
(21,655)
(719,721)
￦
￦
376,066
329,914
46,152
51,311
(5,159)
(1,047)
232,920
174,590
326,199
432,741
179,110
(233,528)
(14,839)
(218,689)
Assets and liabilities classified as held for sale due to discontinued operations as of December 31, 2023 and December
31, 2022 are as follows.
Description
December 31, 2023
December 31, 2022
(In millions of Korean Won)
Assets:
Current assets:
Cash and cash equivalents
Other receivables
Inventories
Other assets
Others
Total current assets
Non-current assets:
Other assets
Property, plant and equipment
Deferred tax assets
Others
Total non-current assets
Liabilities:
Current liabilities:
Trade notes and accounts payable
Current portion of long-term debts
Provisions
Other liabilities
Total current liabilities:
Non-current liabilities:
Provisions
Total non-current liabilities:
￦
70,804
4,445
268,071
11,773
2,730
357,823
8,927
54,761
12,295
697
76,680
3,061
88,462
8,682
13,631
113,836
9,015
9,015
￦
102
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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Net cash flows generated from Hyundai Motor Manufacturing Rus LLC (HMMR) for the years ended December 31,
2023 and 2022 are as follows.
Description
December 31, 2023
December 31, 2022
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
￦
(In millions of Korean Won)
(276,116) ￦
(65,282)
(228,892)
(62,608)
(91,056)
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44. SUBSEQUENT EVENTS:
The Group declared acquisition of hydrogen fuel cell business based on the resolution of the Board of Directors on
February 16, 2024. The details are as follow:
Description
Seller
Date of acquisition
Object of acquisition
Price for acquisition
Contents
Hyundai MOBIS Co., Ltd.
May 31, 2024
Domestic hydrogen fuel cell business
￦217,800 million
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Independent auditor`s audit opinion on internal control over financial reporting
The accompanying independent auditor’s audit report on internal control over financial reporting is attached as
a result of auditing the internal control over financial reporting of Hyundai Motor Company (the “Company”) and
its subsidiaries (collectively referred to as the “Group”) and the consolidated financial statements of the Group
for the year ended December 31, 2023 in accordance with the Article 8 of the Act on External Audit of Stock
Companies.
Attachments:
1. Independent auditor’s audit report on internal control over financial reporting
2. ICFR Operating Status Report for Consolidation Purposes by CEO
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Independent auditor’s audit report on internal control over financial reporting
(English Translation of a Report Originally Issued in Korean)
Hyundai Motor Company
The Shareholders and Board of Directors
Opinion on internal control over financial reporting
We have audited the internal control over financial reporting (“ICFR”) of Hyundai Motor Company (the
“Company”) and its subsidiaries (collectively referred to as the “Group”) based on the Conceptual Framework
for Design and Operation of ICFR established by the Operating Committee of ICFR in Korea (the “ICFR
Committee”) as of December 31, 2023.
In our opinion, the Group's ICFR has been effectively designed and operated, in all material respects, as of
December 31, 2023 in accordance with the Conceptual Framework for Design and Operation of ICFR.
We also have audited, in accordance with the Korean Standards on Auditing (“KSA”), the consolidated
statement of financial position as of December 31, 2023, and the consolidated statement of income, the
consolidated statement of other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of material accounting policy information, and our report dated March 6, 2024
expressed unmodified opinion.
Basis for opinion on ICFR
We conducted our audit in accordance with KSA. Our responsibilities under those standards are further
described in the Auditor's responsibilities for the audit of ICFR section of our report. We are independent of the
Group in accordance with the ethical requirements that are relevant to our audit of ICFR in the Republic of
Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibility of management and those charged with governance for ICFR
Management is responsible for designing, implementing and maintaining an effective ICFR, and for assessing
the effectiveness of the ICFR included in the accompanying “ICFR Operating Status Report for Consolidation
Purposes by CEO”.
Those charged with governance are responsible for overseeing the Group’s ICFR process.
Auditor's responsibilities for the audit of ICFR
Our responsibility is to express an opinion of the Group’s ICFR based on our audit. We conducted our audit in
accordance with KSA. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective ICFR was maintained in all material respects.
An audit of the ICFR involves performing procedures to obtain audit evidence as to whether a material
weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks that a material weakness exists. An audit also includes testing and evaluating the design and operation
of ICFR based on obtaining an understanding of ICFR and the assessed risk.
ICFR definition and inherent limitations
The Group`s ICFR is implemented by those charged with governance, management, and other employees
and is a process designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of consolidated financial statements for external purposes in accordance with International
Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”). The Group`s ICFR includes
those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
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accurately and fairly reflect the transactions and dispositions of the assets of the Group; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of consolidated financial
statements in accordance with KIFRS, and that receipts and expenditures of the Group are being made only
in accordance with authorizations of management and directors of the Group; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
Group's assets that could have a material effect on the consolidated financial statements.
Because of its inherent limitations, ICFR may not prevent or detect misstatements of the consolidated financial
statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
ICFR may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
The engagement partner on the audit resulting in this independent auditors’ report is Do hun, Han.
Seoul, Korea
March 6, 2024
This audit report is effective as of March 6, 2024, the independent auditor’s report date. Accordingly, certain
material subsequent events or circumstances may have occurred during the period from the auditor’s report
date to the time this report is used. Such events and circumstances could significantly affect the Group’s
ICFR and may result in modifications to this report.
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ICFR Operating Status Report for Consolidation Purposes by CEO
To the Shareholders, Board of Directors, and Audit Committee of Hyundai M otor
Company
W e, as the Chief Executive Officer and the Internal Accounting M anager of Hyundai M otor
Company (“the Company”), assessed operating status of the Company’s Internal Control
over Financial Reporting(“ICFR”) for consolidation purposes for the year ending December
31, 2023.
Design and operation of ICFR for consolidation purposes is the responsibility of the
Company’s management, including the Chief Executive Officer and the Internal
Accounting M anager (collectively, “W e”, “Our” or “Us”).
W e evaluated whether the Company effectively designed and operated its ICFR for
consolidation purposes to prevent and detect errors or frauds which may cause a
misstatement in consolidated financial statements to ensure preparation and disclosure of
reliable financial information.
W e used the ‘Conceptual Framework for Designing and Operating Internal Control over
Financial Reporting’ established by the Operating Committee of Internal Control over
Financial Reporting in Korea (the “ICFR Committee”)’ as the criteria for design and
operation of the Company’s ICFR for consolidation purposes. And we conducted an
evaluation of ICFR for consolidation purposes based on the ‘M anagement Guideline for
Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’
established by the ICFR Committee.
Based on our assessment, we concluded that the Company’s ICFR for consolidation
purposes is designed and operated effectively as of December 31, 2023, in all material
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respects, in accordance with the ‘Conceptual Framework for Designing and Operating
Internal Control over Financial Reporting’.
W e certify that this report does not contain any untrue statement of a fact, or omit to
state a fact necessary to be presented herein. W e also certify that this report does not
contain or present any statements which might cause material misunderstandings of the
readers, and we have reviewed and verified this report with sufficient care.
January 25, 2024
Chang, Jae Hoon
Chief Executive Officer
Lee, Seung Jo
Internal Accounting M anager
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