HYUNDAI MOTOR COMPANY

AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED
June 30, 2020 AND 2019 (Unaudited)

ATTACHMENT: INDEPENDENT AUDITORS’ REVIEW REPORT

HYUNDAI MOTOR COMPANY

 Contents

INDEPENDENT AUDITORS’ REVIEW REPORT ----------------------------------------------------------- 1

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ----------------------------------- 4

CONSOLIDATED STATEMENTS OF INCOME ------------------------------------------------------ 6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME --------------------------- 7

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ------------------------------------ 8

CONSOLIDATED STATEMENTS OF CASH FLOWS ----------------------------------------------- 10

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS --------------------------------- 12

 152, Teheran-ro, Gangnam-gu, Seoul 06236
(Yeoksam-dong, Gangnam Finance Center 27th Floor)
Republic of Korea

Independent Auditors’ Review Report

The Board of Directors and Shareholders

Hyundai Motor Company:

Reviewed financial statements

We have reviewed the accompanying condensed consolidated interim financial statements of Hyundai
Motor Company and its subsidiaries (the “Group”), which comprise the condensed consolidated
statement of financial position as of June 30, 2020, the condensed consolidated statements of income,
comprehensive income for the three-month and six-month periods ended June 30, 2020 and 2019, the
condensed consolidated statements of changes in equity and cash flows for the six-month periods ended
June 30, 2020 and 2019 and notes, comprising a summary of significant accounting policies and other
explanatory information.

Management’s responsibility
Management is responsible for the preparation and fair presentation of these condensed consolidated
interim financial statements in accordance with Korean International Financial Reporting Standards (“K-
IFRS”) No.1034 Interim Financial Reporting, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditors’ review responsibility

Our responsibility is to issue a report on these condensed consolidated interim financial statements
based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual
Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A
review of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying
condensed consolidated interim financial statements referred to above are not prepared, in all material
respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.
.
Other matters
The consolidated statement of financial position as of December 31, 2019, and the related consolidated
statements of income, comprehensive income, changes in equity and cash flows for the year then ended,
which are not accompanying this report, were audited by us in accordance with Korean Standards on
Auditing and our report thereon, dated March 4, 2020, expressed an unqualified opinion. The
accompanying statement of financial position as of December 31, 2019, presented for comparative
purposes, is not different from that audited by other us from which it was derived in all material respects.

The procedures and practices utilized in the Republic of Korea to review such condensed consolidated
interim financial statements may differ from those generally accepted and applied in other countries.
Seoul, Korea
August 14, 2020

This report is effective as of August 14, 2020, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report,
could have a material impact on the accompanying condensed consolidated interim financial statements
and notes thereto. Accordingly, the readers of the review report should understand that the above
review report has not been updated to reflect the impact of such subsequent events or circumstances,
if any.
HYUNDAI MOTOR COMPANY
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED
JUNE 30, 2020 AND 2019

The accompanying consolidated financial statements, including all footnote disclosures, were
prepared by, and are the responsibility of, the Company.

Lee, Won Hee

Chief Executive Officer
HYUNDAI MOTOR COMPANY

Main Office Address: (Road Name Address) 12, Heolleung-ro, Seocho-gu, Seoul
(Phone Number) 02-3464-1114
 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2020 AND DECEMBER 31, 2019

ASSETS NOTES June 30, 2020 December 31, 2019

(In millions of Korean Won)
Current assets:
Cash and cash equivalents 20 ￦ 10,883,777 ￦ 8,681,971
Short-term financial instruments 20 5,344,943 7,292,626
Other financial assets 5,20 11,810,528 9,449,913
Trade notes and accounts receivable 3,20 2,697,901 3,513,090
Other receivables 4,20 3,887,249 3,402,059
Inventories 6 12,218,533 11,663,848
Current tax assets 151,875 112,046
Financial services receivables 14,20 30,191,989 30,178,200
Non-current assets classified as held for sale 8 - 11,493
Other assets 7,20 1,839,102 1,777,627
Total current assets 79,025,897 76,082,873

Non-current assets:
Long-term financial instruments 20 241,614 803,262
Other financial assets 5,20 2,802,523 3,059,526
Long-term trade notes and accounts receivable 3,20 117,454 127,430
Other receivables 4,20 693,173 705,154
Property, plant and equipment 9,40 33,550,248 32,831,524
Investment property 10,40 166,507 171,494
Intangible assets 11,40 5,581,398 5,266,496
Investments in joint ventures and associates 13 19,634,310 18,375,290
Deferred tax assets 2,489,384 2,340,096
Financial services receivables 14,20 34,472,223 32,080,426
Operating lease assets 15 21,267,262 21,068,340
Right-of-use assets 12 854,949 734,542
Other assets 7,20 907,578 865,767
Total non-current assets 122,778,623 118,429,347

Total assets ￦ 201,804,520 ￦ 194,512,220

(Continued)
 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2020 AND DECEMBER 31, 2019

LIABILITIES AND EQUITY NOTES June 30, 2020 December 31, 2019
(In millions of Korean Won)
Current liabilities:
Trade notes and accounts payable 20 ￦ 7,346,250 ￦ 7,669,424
Other payables 20 4,826,831 6,060,100
Short-term borrowings 16,20,40 12,129,672 12,570,693
Current portion of long-term debt and debentures 16,20,40 17,704,039 15,778,558
Income tax payable 436,275 370,100
Provisions 17 3,635,437 3,462,034
Other financial liabilities 18,20 31,477 9,970
Lease liabilities 12,20 142,714 132,388
Other liabilities 19,20 7,961,163 7,260,829
Total current liabilities 54,213,858 53,314,096

Non-current liabilities:
Long-term other payables 20 812,669 847,287
Debentures 16,20,40 47,188,459 41,805,814
Long-term debt 16,20,40 12,519,333 11,217,088
Net defined benefit liabilities 35 419,314 412,598
Provisions 17 3,641,404 3,682,895
Other financial liabilities 18,20 264,186 175,196
Deferred tax liabilities 3,457,345 3,503,077
Lease liabilities 12,20 618,091 635,596
Other liabilities 19,20 2,621,726 2,552,819
Total non-current liabilities 71,542,527 64,832,370

Total liabilities 125,756,385 118,146,466

Equity:
Capital stock 21 1,488,993 1,488,993
Capital surplus 22 4,196,999 4,197,015
Other capital items 23 (1,700,573) (1,516,817)
Accumulated other comprehensive loss 24 (2,445,072) (2,353,022)
Retained earnings 25 68,114,066 68,249,633
Equity attributable to the owners of the Company 69,654,413 70,065,802

Non-controlling interests 6,393,722 6,299,952

Total equity 76,048,135 76,365,754

Total liabilities and equity ￦ 201,804,520 ￦ 194,512,220

(Concluded)

See accompanying notes to the consolidated financial statements.

 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
NOTES June 30 June 30 June 30 June 30
(In millions of Korean Won, except per share amounts)
Sales 27,40 ￦ 21,858,991 ￦ 47,178,439 ￦ 26,966,353 ￦ 50,953,432

Cost of sales 32 18,147,164 39,201,302 22,343,313 42,417,730

Gross profit 3,711,827 7,977,137 4,623,040 8,535,702

Selling and administrative expenses 28,32 3,121,506 6,523,040 3,385,315 6,473,106

Operating profit 590,321 1,454,097 1,237,725 2,062,596

Gain (loss) on investments in joint ventures

and associates, net 29 (51,110) 34,709 81,197 367,900
Finance income 30 301,935 454,891 200,986 433,611
Finance expenses 30 337,144 566,514 146,457 265,879
Other income 31 477,105 707,363 408,095 687,265
Other expenses 31,32 384,841 764,012 395,560 682,706

Profit before income tax 596,266 1,320,534 1,385,986 2,602,787

Income tax expense 34 218,996 390,582 386,690 649,706

Profit for the period ￦ 377,270 ￦ 929,952 ￦ 999,296 ￦ 1,953,081

Profit attributable to:

Owners of the Company 227,386 690,700 919,260 1,748,737
Non-controlling interests 149,884 239,252 80,036 204,344

Earnings per share attributable to the owners

of the Company: 33
Basic earnings per share:
Common stock ￦ 869 ￦ 2,642 ￦ 3,490 ￦ 6,632
1st preferred stock ￦ 882 ￦ 2,667 ￦ 3,503 ￦ 6,657
Diluted earnings per share:
Common stock ￦ 868 ￦ 2,641 ￦ 3,490 ￦ 6,632
1st preferred stock ￦ 881 ￦ 2,666 ￦ 3,503 ￦ 6,657

See accompanying notes to the consolidated financial statements.

 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
June 30 June 30 June 30 June 30
(In millions of Korean Won)
Profit for the period ￦ 377,270 ￦ 929,952 ￦ 999,296 ￦ 1,953,081

Other comprehensive income (loss):

Items that will not be reclassified subsequently to
profit or loss:
Profit (loss) on financial assets measured at
FVOCI, net 75,557 (251,168) 22,091 18,392
Remeasurements of defined benefit plans 9,974 (20,851) (8,314) (7,776)
Changes in retained earnings of equity-accounted
investees, net (20,555) (13,007) (29,075) (41,183)
Changes in share of OCI of equity-accounted
investees, net 18,993 3,900 10,323 14,318
83,969 (281,126) (4,975) (16,249)
Items that may be reclassified subsequently to
profit or loss:
Profit on financial assets measured at
FVOCI, net 13,143 1,409 6,207 11,323
Gain (loss) on valuation of cash flow hedge
derivatives, net 52,148 (105,995) (7,350) 6,939
Changes in share of OCI of equity-accounted
investees, net (54,695) 47,527 126,422 282,484
Gain (loss) on foreign operations translation, net (287,433) 234,654 354,712 662,894
(276,837) 177,595 479,991 963,640
Total other comprehensive income (loss) (192,868) (103,531) 475,016 947,391

Total comprehensive income ￦ 184,402 ￦ 826,421 ￦ 1,474,312 ￦ 2,900,472

Comprehensive income attributable to:

Owners of the Company 215,627 562,190 1,356,616 2,608,405
Non-controlling interests (31,225) 264,231 117,696 292,067
Total comprehensive income ￦ 184,402 ￦ 826,421 ￦ 1,474,312 ￦ 2,900,472

See accompanying notes to the consolidated financial statements.

 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

Accumulated Total equity

Other other attributable to Non-
Capital Capital capital comprehensive Retained the owners of controlling Total
stock surplus items income (loss) earnings the Company interests equity
(In millions of Korean Won)
Balance at
January 1, 2019 ￦ 1,488,993 ￦ 4,201,214 ￦ (1,155,244) ￦ (3,051,076) ￦ 66,490,082 ￦ 67,973,969 ￦ 5,922,041 ￦ 73,896,010
Comprehensive
income:
Profit for the period - - - - 1,748,737 1,748,737 204,344 1,953,081
Gain (loss) on financial
assets measured at
FVOCI, net - - - 25,391 (1,785) 23,606 6,109 29,715
Gain on valuation of
cash flow hedge
derivatives, net - - - 5,695 - 5,695 1,244 6,939
Changes in valuation
of equity-accounted
investees, net - - - 282,354 (41,183) 241,171 14,448 255,619
Remeasurements of
defined benefit plans - - - - (5,523) (5,523) (2,253) (7,776)
Gain on foreign
operations
translation, net - - - 594,719 - 594,719 68,175 662,894
Total comprehensive
Income - - - 908,159 1,700,246 2,608,405 292,067 2,900,472
Transactions with
owners, recorded
directly in equity:
Payment of cash
dividends - - - - (800,301) (800,301) (58,503) (858,804)
Increase in paid-in
capital of
subsidiaries by
issuing stock - - - - - - 3,228 3,228
Acquisitions of
investment of
subsidiaries - - - - - - 2,169 2,169
Disposals of
investment of
subsidiaries - - - - - - (33,068) (33,068)
Purchases of
treasury stocks - - (233,830) - - (233,830) - (233,830)
Others - (6,303) - - (1) (6,304) 12,686 6,382
Total transactions with
owners, recorded
directly in equity - (6,303) (233,830) - (800,302) (1,040,435) (73,488) (1,113,923)
Balance at
June 30, 2019 ￦ 1,488,993 ￦ 4,194,911 ￦ (1,389,074) ￦ (2,142,917) ￦ 67,390,026 ￦ 69,541,939 ￦ 6,140,620 ￦ 75,682,559

(Continued)
 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

Accumulated Total equity

Other other attributable to Non-
Capital Capital capital comprehensive Retained the owners of controlling Total
stock surplus items income (loss) earnings the Company interests equity
(In millions of Korean Won)
Balance at
January 1, 2020 ￦ 1,488,993 ￦ 4,197,015 ￦ (1,516,817) ￦ (2,353,022) ￦ 68,249,633 ￦ 70,065,802 ￦ 6,299,952 ￦ 76,365,754
Comprehensive
income:
Profit for the period - - - - 690,700 690,700 239,252 929,952
Gain (loss) on financial
assets measured at
FVOCI, net - - - (245,913) (5,560) (251,473) 1,714 (249,759)
Loss on valuation of
cash flow hedge
derivatives, net - - - (62,397) - (62,397) (43,598) (105,995)
Changes in valuation
of equity-accounted
investees, net - - - 48,995 (13,007) 35,988 2,432 38,420
Remeasurements of
defined benefit plans - - - - (17,893) (17,893) (2,958) (20,851)
Gain on foreign
operations
translation, net - - - 167,265 - 167,265 67,389 234,654
Total comprehensive
Income - - - (92,050) 654,240 562,190 264,231 826,421
Transactions with
owners, recorded
directly in equity:
Payment of cash
dividends - - - - (790,489) (790,489) (103,290) (893,779)
Increase in paid-in
capital of
subsidiaries by
issuing stock - - - - - - 795 795
Disposals of
investment of
subsidiaries - - - - - - (67,662) (67,662)
Purchases of
treasury stocks - - (183,756) - - (183,756) - (183,756)
Others - (16) - - 682 666 (304) 362
Total transactions with
owners, recorded
directly in equity - (16) (183,756) - (789,807) (973,579) (170,461) (1,144,040)
Balance at
June 30, 2020 ￦ 1,488,993 ￦ 4,196,999 ￦ (1,700,573) ￦ (2,445,072) ￦ 68,114,066 ￦ 69,654,413 ￦ 6,393,722 ￦ 76,048,135

(Concluded)

See accompanying notes to the consolidated financial statements.

 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

Six-month period ended June 30,

NOTES 2020 2019
(In millions of Korean Won)
Cash flows from operating activities:
Cash generated from operations: 36
Profit for the period ￦ 929,952 ￦ 1,953,081
Adjustments 7,675,153 7,250,640
Changes in operating assets and liabilities (6,906,441) (6,498,813)
1,698,664 2,704,908

Interest received 267,499 344,522

Interest paid (991,111) (998,005)
Dividend received 222,482 204,079
Income tax paid (480,872) (483,259)
Net cash provided by operating activities 716,662 1,772,245

Cash flows from investing activities:

Changes in short-term financial instruments, net 2,363,030 (552,889)
Changes in other financial assets (current), net (2,060,276) 390,743
Decrease in other financial assets (non-current) 5,273 2,650
Collection of other receivables 22,725 20,380
Disposals of long-term financial instruments 2,468 1,452
Proceeds from disposals of property, plant and
equipment 45,459 20,405
Proceeds from disposals of intangible assets 619 2,590
Proceeds from disposals of investment of
subsidiaries 76,133 -
Acquisitions of subsidiaries, net of cash acquired (50,313) 2,169
Increases in other financial assets (non-current) (50,953) (345,771)
Increases in other receivables (11,791) (26,754)
Purchases of long-term financial instruments 31,527 (7,877)
Acquisitions of property, plant and equipment (2,190,207) (1,668,589)
Acquisitions of intangible assets (727,840) (629,178)
Acquisitions of investments in joint ventures and
associates (927,157) (104,932)
Others 68,829 52,700
Net cash used in investing activities (3,402,474) (2,842,901)

(Continued)
 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

Six-month period ended June 30,

NOTES 2020 2019
(In millions of Korean Won)
Cash flows from financing activities:
Repayment of short-term borrowings, net ￦ (1,657,864) ￦ (1,088,985)
Proceeds from long-term debt and debentures 17,546,334 12,506,800
Proceeds from capital contribution from non-
controlling interest 795 3,228
Repayment of long-term debt and debentures (9,809,069) (9,073,733)
Repayment of lease liabilities (104,903) (83,322)
Purchases of treasury stocks (183,756) (233,830)
Dividends paid (893,753) (858,776)
Others (22,358) (40,081)
Net cash provided by financing activities 4,875,426 1,131,301

Effect of exchange rate changes on cash and

cash equivalents 12,192 317,503

Net increase in cash and cash equivalents 2,201,806 378,148

Cash and cash equivalents, beginning of the period 8,681,971 9,113,625

Cash and cash equivalents, end of the period ￦ 10,883,777 ￦ 9,491,773

(Concluded)

See accompanying notes to the consolidated financial statements.

 HYUNDAI MOTOR COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019

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 June 30, 2020, the major shareholders of the Company are Hyundai MOBIS (45,782,023 shares, 21.43%)
and Mr. Chung, Mong Koo (11,395,859 shares, 5.33%).
(1) The Group’s consolidated subsidiaries as of June 30, 2020 are as follows.
Nature of Ownership
Name of subsidiaries Location Indirect ownership
business percentage
Hyundai Capital Services, Inc. Financing Korea 59.68%
Hyundai Card Co., Ltd. (*1) ˝ ˝ 36.96%
Hyundai Rotem Company (Hyundai
Manufacturing ˝ 43.36%
Rotem) (*2)
Hyundai KEFICO Corporation (Hyundai
˝ ˝ 100.00%
KEFICO)
Hyundai Auto Electronics Company Ltd. R&D ˝ 60.00%
Hyundai Partecs Co., Ltd. Manufacturing ˝ 56.00%
Hyundai NGV Engineering ˝ 53.66%
Maintrans Company Services ˝ 100.00% Hyundai Rotem 100.00%
Jeonbuk Hyundai Motors FC Co., Ltd. Football club ˝ 100.00%
Hyundai Motor America (HMA) Sales USA 100.00%
Hyundai Capital America (HCA) Financing ˝ 80.00% HMA 80.00%
Hyundai Motor Manufacturing
Manufacturing ˝ 100.00% HMA 100.00%
Alabama, LLC (HMMA)
Hyundai Translead, Inc. (HT) ˝ ˝ 100.00%
Stamped Metal American Research
Holding company ˝ 72.45% HMA 72.45%
Technology, Inc. (SMARTI)
Stamped Metal American Research
Manufacturing ˝ 100.00% SMARTI 100.00%
Technology LLC
Hyundai America Technical Center,
R&D ˝ 100.00%
Inc. (HATCI)
Genesis Motor America LLC Sales ˝ 100.00% HMA 100.00%
Hyundai Rotem USA Corporation Manufacturing ˝ 100.00% Hyundai Rotem 100.00%
Moceanlab Inc. Mobility service ˝ 100.00%
Genesis Air Mobility LLC R&D ˝ 100.00%
Hyundai Auto Canada Corp. (HACC) Sales Canada 100.00% HMA 100.00%
Hyundai Auto Canada Captive
Insurance ˝ 100.00% ˝
Insurance Inc. (HACCI)
Hyundai Capital Canada Inc. (HCCA) Financing ˝ 70.00% Hyundai Capital Services 20.00%
Hyundai Capital Lease Inc. (HCLI) ˝ ˝ 100.00% HCCA 100.00%
HCLI 99.99%,
HK Lease Funding LP ˝ ˝ 100.00%
HCCA Funding Inc. 0.01%
HCCA Funding Inc. ˝ ˝ 100.00% HCLI 100.00%
HCCA Funding Two Inc. ˝ ˝ 100.00% HCCA 100.00%
HCCA 99.99%,
HK Retail Funding LP ˝ ˝ 100.00%
HCCA Funding Two Inc 0.01%
Hyundai Motor India Limited (HMI) Manufacturing India 100.00%
Hyundai Motor India Engineering
R&D ˝ 100.00% HMI 100.00%
Private Limited (HMIE)
Hyundai Capital India Private Limited
Financing ˝ 100.00% Hyundai Capital Services 100.00%
(HCI)
Hyundai Motor Japan Co., Ltd. (HMJ) Sales Japan 100.00%
Hyundai Motor Japan R&D Center
R&D ˝ 100.00%
Inc. (HMJ R&D)
 Nature of Ownership
Name of subsidiaries Location Indirect ownership
business percentage
Beijing Jingxian Motor Safeguard
Sales China 100.00%
Service Co., Ltd. (BJMSS)
Beijing Jingxianronghua Motor Sale
˝ ˝ 100.00% BJMSS 100.00%
Co., Ltd.
Genesis Motor Sales (Shanghai) Co. Ltd. ˝ ˝ 100.00%
Hyundai Millennium (Beijing) Real Estate Real estate
˝ 99.00% CMEs 99.00%
Development Co., Ltd. development
Rotem Equipments (Beijing) Co., Ltd. Sales ˝ 100.00% Hyundai Rotem 100.00%
KEFICO Automotive Systems
Manufacturing ˝ 100.00% Hyundai KEFICO 100.00%
(Beijing) Co., Ltd.
KEFICO Automotive Systems
˝ ˝ 90.00% Hyundai KEFICO 90.00%
(Chongqing) Co., Ltd.
Hyundai Truck & Bus (China) Co., Ltd.
˝ ˝ 100.00%
(HTBC) (*3)
HYUNDAI THANH CONG VIETNAM
AUTO MANUFACTURING ˝ Vietnam 50.00%
CORPORATION (HTMV) (*1)
Hyundai Thanh cong Commercial Vehicle
Sales ˝ 50.00%
Joint Stock Company (HTCV) (*1)
HYUNDAI KEFICO VIETNAM
Manufacturing ˝ 100.00% Hyundai KEFICO 100.00%
COMPANY LIMITED
Hyundai Motor Company Australia
Sales Australia 100.00%
Pty Limited (HMCA)
PT. HYUNDAI MOTOR
MANUFACTURING INDONESIA Manufacturing Indonesia 99.99%
(HMMI)
Hyundai Motors Indonesia (HMID) Sales ˝ 100.00%
Hyundai Capital Australia Pty Limited Financing Australia 100.00% Hyundai Capital Services 100.00%
HR Mechanical Services Limited Services New Zealand 100.00% Hyundai Rotem 100.00%
Hyundai Motor Manufacturing Czech,
Manufacturing Czech 100.00%
s.r.o. (HMMC)
Hyundai Motor Czech s.r.o (HMCZ) Sales ˝ 100.00%
Marketing and
Hyundai Motor Europe GmbH (HME) Germany 100.00%
Sales
Hyundai Motor Deutschland GmbH
Sales ˝ 100.00%
(HMD)
Hyundai Motor Europe Technical
R&D ˝ 100.00%
Center GmbH (HMETC)
Hyundai Motor Sport GmbH (HMSG) Marketing ˝ 100.00% HME 100.00%
Hyundai Capital Europe GmbH Financing ˝ 100.00% Hyundai Capital Services 100.00%
Hyundai Motor Commonwealth of
Holding company Netherlands 100.00% HMMR 1.65%
Independent States B.V (HMCIS B.V)
Hyundai Motor Netherlands B.V.
Sales ˝ 100.00%
(HMNL)
Hyundai Motor Manufacturing Rus
Manufacturing Russia 70.00%
LLC (HMMR)
Hyundai Motor Commonwealth of
Sales ˝ 100.00% HMCIS B.V 100.00%
Independent States (HMCIS)
Hyundai Mobility Lab (HML) R&D ˝ 100.00% HMCIS 99.00%, HMMR 1.00%
Hyundai Capital Services Limited
Financing ˝ 100.00% Hyundai Capital Europe 100.00%
Liability Company
Hyundai Truck And Bus Rus LLC
Sales ˝ 100.00%
(HTBR)
Hyundai Assan Otomotiv Sanayi Ve
Manufacturing Turkey 70.00%
Ticaret A.S. (HAOSVT)
Hyundai EURotem Demiryolu Araclari
˝ ˝ 50.50% Hyundai Rotem 50.50%
Sanayi ve Ticaret A.S
Hyundai Rotem Company – Hyundai
Hyundai Rotem 65.00%,
EURotem Demiryolu Araclari Sales ˝ 100.00%
Hyundai EURotem A.S. 35.00%
SAN. VE TIC. A.S ORTAK GIRISIMI
Hyundai Rotem Company – Hyundai
Hyundai Rotem 85.00%,
EUrotem Mahmutbey Projesi ORTAK ˝ ˝ 100.00%
Hyundai EURotem A.S. 15.00%
GIRISIMI
Hyundai Rotem Malaysia SDN BHD ˝ Malaysia 100.00% Hyundai Rotem 100.00%
Hyundai Motor UK Limited (HMUK) ˝ UK 100.00%
Hyundai Motor Company Italy S.r.l
˝ Italy 100.00%
(HMCI)
 Nature of Ownership
Name of subsidiaries Location Indirect ownership
business percentage
Hyundai Motor Espana, S.L.U. (HMES) ˝ Spain 100.00%
Hyundai Motor France SAS (HMF) ˝ France 100.00%
Hyundai Motor Poland Sp. Zo. O (HMP) ˝ Poland 100.00%
Genesis Motor Europe Gmbh (GME) ˝ Germany 100.00%
Genesis Motor UK Limited (GMUK) ˝ UK 100.00% GME 100.00%
Genesis Motor Switzerland AG (GMCH) ˝ Switzerland 100.00%
Hyundai Hydrogen Mobility AG (HHM) ˝ ˝ 75.00%
HYUNDAI MOTOR SINGAPORE PTE.
Manufacturing Singapore 100.00%
LTD. (HMS)
Hyundai Motor DE Mexico S DE RL
Sales Mexico 100.00% HT 0.01%
DE CV (HMM)
Hyundai de Mexico, SA DE C.V.,
Manufacturing ˝ 99.99% HT 99.99%
(HYMEX)
HYUNDAI KEFICO MEXICO, S.
˝ ˝ 100.00% Hyundai KEFICO 100.00%
DE R.L.DE C.V.
Real estate
Hyundai Rio Vista, Inc. USA 100.00% HT 100.00%
development
Hyundai Motor Brasil Montadora de
Manufacturing Brazil 100.00%
Automoveis LTDA (HMB)
Hyundai Capital Brasil Servicos De
Financing ˝ 100.00% Hyundai Capital Services 100.00%
Assistencia Financeira Ltda
Hyundai Rotem Brasil Industria E
Manufacturing ˝ 100.00% Hyundai Rotem 100.00%
Comercio De Trens Ltda.
HMB Holding Participacoes
Holding company ˝ 99.99% HMB 99.99%
Financeiras Ltda.
Cayman
China Millennium Corporations (CMEs) ˝ 59.60%
Islands
China Mobility Fund, L.P. Investment ˝ 72.00%
KyoboAXA Private Tomorrow Securities
˝ Korea 100.00%
Investment Trust No.12
Shinhan BNPP Private Corporate
˝ ˝ 100.00%
Security Investment Trust No.34
KB Leaders Private Securities
˝ ˝ 100.00%
Fund1(Bond Mixed)
Samsung ETF rotation Private Investment
˝ ˝ 100.00%
Trust 1
ZER01NE Accelerator
˝ ˝ 99.00%
Investment Fund No.1
China
Hydrogen Energy Industry Fund ˝ 69.00%
(Hong Kong)
Autopia Fifty-ninth ~ Sixtieth, Sixty-
second ~ Sixty-ninth Asset Financing Korea 0.50% Hyundai Capital Services 0.50%
Securitization Specialty Company (*1)
Super Series Fourth ~ Ninth Securitization
˝ ˝ 0.50% Hyundai Card 0.50%
Specialty Co., Ltd. (*1)
Bluewalnut Co., Ltd. ˝ ˝ 100.00% Hyundai Card 100.00%
MOCEAN Co.,Ltd Mobility Service ˝ 80.00%
Hyundai CHA Funding, LLC Financing USA 100.00% HCA 100.00%
Hyundai Lease Titling Trust ˝ ˝ 100.00% ˝
Hyundai HK Funding, LLC ˝ ˝ 100.00% ˝
Hyundai HK Funding Two, LLC ˝ ˝ 100.00% ˝
Hyundai HK Funding Three, LLC ˝ ˝ 100.00% ˝
Hyundai HK Funding Four, LLC ˝ ˝ 100.00% ˝
Hyundai ABS Funding, LLC ˝ ˝ 100.00% ˝
HK Real Properties, LLC ˝ ˝ 100.00% ˝
Hyundai Auto Lease Offering, LLC ˝ ˝ 100.00% ˝
Hyundai HK Lease, LLC ˝ ˝ 100.00% ˝
Extended Term Amortizing Program, LLC ˝ ˝ 100.00% ˝
Hyundai Asset Backed Lease, LLC ˝ ˝ 100.00% ˝
HCA Exchange, LLC ˝ ˝ 100.00% ˝
Hyundai Protection Plan, Inc. Insurance ˝ 100.00% ˝
Hyundai Protection Plan Florida, Inc. ˝ ˝ 100.00% ˝
Hyundai Capital Insurance Services, LLC ˝ ˝ 100.00% ˝
Hyundai Capital Insurance Company ˝ ˝ 100.00% ˝
Power Protect Extended Services, Inc. ˝ ˝ 100.00% ˝
Power Protect Extended Services Florida,
˝ ˝ 100.00% ˝
Inc.
(*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 shareholding ratio of ownership 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.
(*3) During the six-month period ended June 30, 2020, the Group acquired additional 50% of the shares of the Sichuan
Hyundai Motor Company (CHMC) which was classified as a joint venture as of December 31, 2019. Accordingly, it
was reclassified as a subsidiary and the name of company was changed to Hyundai Truck & Bus (China) Co., Ltd.
(HTBC).

(2) Summarized financial position and results of operations of major consolidated subsidiaries as of and for
the six-month period ended June 30, 2020 are as follows.

Profit (loss)
Name of subsidiaries Assets Liabilities Sales for the period
(In millions of Korean Won)
Hyundai Capital Services, Inc. (*) ￦ 32,649,353 ￦ 28,158,460 ￦ 1,662,812 ￦ 186,263
Hyundai Card Co., Ltd. (*) 18,555,321 15,220,268 1,244,768 166,151
Hyundai Rotem Company (*) 4,116,062 3,013,710 1,327,090 17,062
Hyundai KEFICO Corporation (*) 1,998,420 1,330,013 822,790 6,413
HCA (*) 46,787,502 41,707,273 5,719,716 56,118
HMA 6,908,004 5,754,522 8,814,511 (120,501)
HMMA 4,581,989 2,152,968 2,564,249 (164,215)
HMMC 3,928,994 1,714,573 2,297,728 61,255
HMI (*) 3,234,445 1,129,225 1,969,132 38,442
HME (*) 2,013,770 1,970,782 4,310,063 5,179
HMMR 1,761,297 929,608 1,222,132 69,894
HACC (*) 1,396,715 764,396 1,257,212 28,350
HAOSVT 1,373,339 899,110 1,101,995 21,770
HMB 1,142,216 962,299 529,539 (89,842)
HMCA 452,869 305,290 610,592 (888)

(*) Based on the subsidiary’s consolidated financial statements

Summarized financial position and results of operations of major consolidated subsidiaries as of and for the
six-month period ended June 30, 2019 are as follows.

Profit (loss)
Name of subsidiaries Assets Liabilities Sales for the period
(In millions of Korean Won)
Hyundai Capital Services, Inc. (*) ￦ 32,136,609 ￦ 27,856,244 ￦ 1,650,060 ￦ 199,666
Hyundai Card Co., Ltd. (*) 16,483,078 13,228,136 1,236,847 121,822
Hyundai Rotem Company (*) 4,041,258 2,987,109 1,222,104 (49,767)
Hyundai KEFICO Corporation (*) 1,756,715 1,104,463 1,010,413 33,317
HCA (*) 38,991,056 34,264,373 5,304,161 129,822
HMA 7,655,473 6,513,818 8,025,698 (155,482)
HMMA 4,796,259 1,970,078 3,762,307 101,214
HMMC 4,047,392 2,098,107 3,119,777 252,271
HMI (*) 4,001,150 1,561,780 3,556,647 214,199
HME (*) 1,869,099 1,837,285 4,858,168 3,774
HACC (*) 1,552,720 1,000,951 1,579,567 3,059
HMMR 1,548,456 815,439 1,563,411 87,273
HMB 1,255,908 814,917 1,070,979 (2,828)
HAOSVT 1,250,619 832,701 1,205,498 22,402
HMCA 645,076 491,646 871,281 3,061

(*) 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.
(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 six-month period ended June 30, 2020 are as follows.

Hyundai Capital Hyundai Card Hyundai Rotem

Description Services, Inc. Co., Ltd. Company
(In millions of Korean Won)
Provided by (used in) operating activities ￦ 468,162 ￦ (499,851) ￦ 219,035
Provided by (used in) investing activities (101,146) (25,687) 156,687
Provided by (used in) financing activities 102,001 975,718 (219,525)
Effect of exchange rate changes on cash and
cash equivalents - 485 (1,625)
Net increase in cash and cash equivalents ￦ 469,017 ￦ 450,665 ￦ 154,572

Summarized cash flows of non-wholly owned subsidiaries that had material non-controlling interests to the
Group and subsidiaries of finance segment for the six-month period ended June 30, 2019 are as follows.

Hyundai Capital Hyundai Card Hyundai Rotem

Description Services, Inc. Co., Ltd. Company
(In millions of Korean Won)
Provided by (used in) operating activities ￦ (1,836,553) ￦ (40,855) ￦ 32,516
Provided by (used in) investing activities (48,812) (14,417) 6,687
Provided by financing activities 1,998,545 347,949 65,260
Effect of exchange rate changes on cash and
cash equivalents - - (3,869)
Net increase in cash and cash equivalents ￦ 113,180 ￦ 292,677 ￦ 100,594

(5) Details of non-wholly owned subsidiaries of the Company that have material non-controlling interests as of
and for the six-month period ended June 30, 2020 are as follows.

Hyundai Capital Hyundai Card Hyundai Rotem

Description Services, Inc. Co., Ltd. Company
(In millions of Korean Won)
Ownership percentage of non-controlling
interests 40.32% 63.04% 56.64%
Accumulated non-controlling interests ￦ 1,815,290 ￦ 2,202,779 ￦ 571,283
Profit attributable to non-controlling
interests 74,510 104,753 11,390
Dividends paid to non-controlling interests 36,081 63,429 3,733

Details of non-wholly owned subsidiaries of the Company that had material non-controlling interests as of
and for the year ended December 31, 2019 are as follows.

Hyundai Capital Hyundai Card Hyundai Rotem

Description Services, Inc. Co., Ltd. Company
(In millions of Korean Won)
Ownership percentage of non-controlling
interests 40.32% 63.04% 56.64%
Accumulated non-controlling interests ￦ 1,799,627 ￦ 2,187,458 ￦ 619,526
Profit (loss) attributable to non-controlling
interests 139,538 105,669 (207,940)
Dividends paid to non-controlling interests 35,200 19,423 3,833
(6) Changes in consolidated subsidiaries

Subsidiaries newly included in or excluded from consolidation for the six-month period ended June 30, 2020 are
as follows.

Changes Name of subsidiaries Description

Included Super Series Eighth Securitization Specialty Co., Ltd Establishment
˝ Super Series Ninth Securitization Specialty Co., Ltd ˝
˝ Hyundai Motors Indonesia (HMID) ˝
˝ Genesis Motor Switzerland AG (GMCH) ˝
˝ Genesis Air Mobility LLC ˝
Autopia Sixty- Ninth Asset Securitization Specialty Company ˝
˝ Hyundai Truck & Bus (China) Co., Ltd. (HTBC) Acquisition
Excluded Autopia Fifty- Seventh Asset Securitization Specialty Company Liquidation
˝ Autopia Fifty- Eighth Asset Securitization Specialty Company ˝
˝ Autopia Sixty- First Asset Securitization Specialty Company ˝
˝ Super Series Third Securitization Specialty Co., Ltd ˝
˝ Green Air Co., Ltd. Disposition

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

(1) Basis of consolidated financial statements preparation

The Group’s condensed consolidated interim financial statements as of June 30, 2020 and for the six-month periods
ended June 30, 2020 and 2019, respectively, are prepared in accordance with K-IFRS 1034, Interim Financial
Reporting. The condensed consolidated financial statements should be read in conjunction with the annual
consolidated financial statements for the year ended December 31, 2019, which have been prepared in accordance
with K-IFRS.

There are new or amended accounting standards effective from January 1, 2020, but those standards did not have
a material impact on the Group's consolidated financial statements. Except for these standards, the significant
accounting policies used for the preparation of the condensed consolidated interim financial statements are
consistent with those applied to the annual consolidated financial statements for the year ended December 31, 2019.

(2) 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 management expects that the COVID-19 outbreak from early 2020 will have an impact on most of the regional
and operating sectors in which the Group operates. However, as the extent and duration of the impacts of COVID-
19 outbreak remain uncertain, the financial impact cannot be reasonably estimated.

Significant judgments made by management on the Group's application of accounting policies and the major
sources of estimation uncertainty for the preparation of financial statements to be the same as the annual
consolidated financial statements for the year ended December 31, 2019.
3. TRADE NOTES AND ACCOUNTS RECEIVABLE:

(1) Trade notes and accounts receivable as of June 30, 2020 and December 31, 2019 are as follows.

June 30, 2020 December 31, 2019

Description Current Non-current Current Non-current
(In millions of Korean Won)
Trade notes and accounts receivable ￦ 2,741,941 ￦ 121,035 ￦ 3,580,654 ￦ 131,089
Loss allowance (44,040) (110) (67,564) -
Present value discount accounts - (3,471) - (3,659)
￦ 2,697,901 ￦ 117,454 ￦ 3,513,090 ￦ 127,430

(2) Aging analysis of trade notes and accounts receivable

As of June 30, 2020, aging analysis of total trade notes and accounts receivable that are past due, but not impaired
are as follows.

Overdue
Within
Overdue 180days Overdue Amount of
Not Within More than More than Total impaired
Description overdue 90days 91days 181 days amounts receivables
(In millions of Korean Won)
Total trade note and
accounts receivable ￦ 2,514,932 ￦ 210,138 ￦ 24,397 ￦ 113,509 ￦ 2,862,976 ￦ 44,150

As of December 31, 2019, aging analysis of total trade notes and accounts receivable that are past due, but not
impaired are as follows.

Overdue
Within
Overdue 180days Overdue Amount of
Not Within More than More than Total impaired
Description overdue 90days 91days 181 days amounts receivables
(In millions of Korean Won)
Total trade note and
accounts receivable ￦ 3,071,945 ￦ 504,725 ￦ 17,624 ￦ 117,449 ￦ 3,711,743 ￦ 67,564

(3) The changes in loss allowance for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 67,564 ￦ 69,363
Reversal (23,621) (2,002)
Write-off (50) (209)
Effect of foreign exchange differences and others 257 426
End of the period ￦ 44,150 ￦ 67,578
4. OTHER RECEIVABLES:

(1) Other receivables as of June 30, 2020 and December 31, 2019 are as follows.

June 30, 2020 December 31, 2019

Description Current Non-current Current Non-current
(In millions of Korean Won)
Accounts receivable – others ￦ 2,718,785 ￦ 352,478 ￦ 2,219,810 ￦ 345,978
Due from customers for contract work 1,150,538 - 1,171,029 -
Lease and rental deposits 20,726 302,856 19,259 313,334
Deposits 5,118 37,839 2,626 41,139
Others 5,914 - 4,738 4,703
Loss allowance (13,832) - (15,403) -
￦ 3,887,249 ￦ 693,173 ￦ 3,402,059 ￦ 705,154

(2) The changes in other allowance for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 15,403 ￦ 13,826
Impairment loss (reversal) (1,014) 1,898
Write-off (563) (424)
Effect of foreign exchange differences 6 9
End of the period ￦ 13,832 ￦ 15,309

5. OTHER FINANCIAL ASSETS:

(1) Other financial assets as of June 30, 2020 are as follows.

June 30, 2020

Description Current Non-current
(In millions of Korean Won)
Financial assets measured at FVPL ￦ 11,621,695 ￦ 593,434
Financial assets measured at FVOCI 50,440 1,897,149
Financial assets measured at amortized cost 32,617 6,130
Derivative assets that are effective hedging instruments 105,776 305,810
￦ 11,810,528 ￦ 2,802,523

Other financial assets as of December 31, 2019 are as follows.

December 31, 2019

Description Current Non-current
(In millions of Korean Won)
Financial assets measured at FVPL ￦ 9,314,383 ￦ 623,040
Financial assets measured at FVOCI 37,255 2,241,379
Financial assets measured at amortized cost 48,275 61,271
Derivative assets that are effective hedging instruments 50,000 133,836
￦ 9,449,913 ￦ 3,059,526
(2) Financial assets measured at FVOCI as of June 30, 2020 and December 31, 2019 are as follows.

June 30, December 31,

2020 2019
Acquisition
Description cost Book value Book value
(In millions of Korean Won)
Debt instruments ￦ 343,170 ￦ 363,128 ￦ 361,138
Equity instruments (*) 1,833,233 1,584,461 1,917,496
￦ 2,176,403 ￦ 1,947,589 ￦ 2,278,634

(*) 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 application of K-IFRS
1109.

(3) Equity instruments classified into financial assets measured at FVOCI as of June 30, 2020 and December
31, 2019 are as follows.

June 30, December 31,

2020 2019
Ownership Acquisition
Name of the company percentage cost Book value Book value
(%) (In millions of Korean Won)
Hyundai Oilbank Co., Ltd. 4.35 ￦ 53,734 ￦ 276,152 ￦ 276,152
Hyundai Steel Company (*1) 6.87 903,897 233,809 358,697
Hyundai Glovis Co., Ltd. 4.88 210,688 185,840 261,824
Korea Shipbuilding & Offshore
Engineering Co., Ltd. 2.31 42,443 142,712 206,557
Korea Aerospace Industries, Ltd. (*2) - 73,331 112,362 161,092
Hyundai Heavy Industries
Holdings Co., Ltd. 2.20 9,018 85,351 117,270
NICE Information Service Co., Ltd. 2.25 3,312 24,928 19,055
Hyundai Green Food Co., Ltd. 2.36 15,005 17,839 27,346
Hyundai M Partners Co., Ltd. 9.29 9,888 11,218 9,704
NICE Holdings Co., Ltd. 1.30 3,491 10,422 10,275
KT Corporation 0.09 8,655 5,654 6,482
Hyundai Asan Corporation 1.40 22,500 2,117 2,117
HMM Co., Ltd. (Formerly. Hyundai Merchant
Marine Co., Ltd.) (*3) - - - 351
Others 477,271 476,057 460,574

￦ 1,833,233 ￦ 1,584,461 ￦ 1,917,496

(*1) The Group entered into a total return swap agreement to transfer 2,231,716 shares out of total 11,405,311 shares with a
third party.
(*2) The Group entered into a total return swap agreement to transfer total shares with a third party.
(*3) During the six-month period ended June 30, 2020, the name of the company has been changed from Hyundai Merchant
Marine Co., Ltd. to HMM Co., Ltd. and the Group has completed the process of disposal of all of its shares.
6. INVENTORIES:

Inventories as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Finished goods ￦ 6,626,934 ￦ 6,828,461
Merchandise 58,856 45,235
Semifinished goods 595,788 550,146
Work in progress 552,413 424,261
Raw materials 2,084,588 1,468,306
Supplies 311,786 305,130
Materials in transit 648,259 690,342
Others (*1) 1,339,909 1,351,967
Total (*2) ￦ 12,218,533 ￦ 11,663,848

(*1) As of June 30, 2020 and December 31, 2019, others include inventories provided by operating lease with repurchase
agreement in the amount of ￦180,723 million and ￦558,239 million, respectively.
(*2) As of June 30, 2020 and December 31, 2019, the Group recognized a valuation allowance in the amount of ￦165,978
million and ￦166,016 million, respectively.

7. OTHER ASSETS:

Other assets as of June 30, 2020 and December 31, 2019 are as follows.

June 30, 2020 December 31, 2019

Description Current Non-current Current Non-current
(In millions of Korean Won)
Accrued income ￦ 323,829 ￦ 1,156 ￦ 329,909 ￦ 1,257
Advanced payments 700,139 - 686,785 -
Prepaid expenses 415,447 831,046 427,780 780,503
Prepaid value-added tax and others 399,687 75,376 333,153 84,007
￦ 1,839,102 ￦ 907,578 ￦ 1,777,627 ￦ 865,767

8. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE:

Non-current assets classified as held for sale as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Land ￦ - ￦ 8,169
Building - 3,324
Total (*) ￦ - ￦ 11,493

(*) Hyundai Capital Services, Inc., which is a subsidiary of the Company, completed the process of disposal of the office
located in Dae-gu and Hyundai Rotem Company, which is a subsidiary of the Company, completed the process of selling
certain portion of their property, plant and equipment (“PP&E”) to Hyundai MOBIS Co., Ltd during the six-month period
ended June 30, 2020.
9. PROPERTY, PLANT AND EQUIPMENT:

The changes in property, plant and equipment (“PP&E”) for the six-month periods ended June 30, 2020 and 2019
are as follows.
Six-month period ended June 30,
Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 32,831,524 ￦ 30,545,608
Acquisitions 1,953,119 1,305,907
Disposals (61,572) (49,876)
Depreciation (1,333,397) (1,228,951)
Transfer to assets classified as held for sale (64,889) -
Others (*) 225,463 205,905
End of the period ￦ 33,550,248 ￦ 30,778,593

(*) Others include the effect of foreign exchange differences, transfers from or to other accounts, changes in the scope of
consolidation and others.

10. INVESTMENT PROPERTY:

(1) The changes in investment property for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 171,494 ￦ 189,334
Disposals - (7,602)
Depreciation (5,405) (5,361)
Effect of foreign exchange differences 418 708
End of the period ￦ 166,507 ￦ 177,079

(2) Income and expenses related to investment property for the three-month and six-month periods ended June 30,
2020 and 2019 are as follows.
2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Rental income ￦ 11,670 ￦ 23,377 ￦ 11,812 ￦ 22,985
Operating and maintenance expenses 4,076 8,322 4,269 8,405

11. INTANGIBLE ASSETS:

(1) The changes in intangible assets for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 5,266,496 ￦ 4,921,383
Internal developments and external acquisitions 706,503 623,760
Disposals (1,084) (4,348)
Amortization (709,279) (636,312)
Impairment loss (29,468) (17,827)
Others (*) 348,230 60,331
End of the period ￦ 5,581,398 ￦ 4,946,987

(*) Others include the effect of foreign exchange differences, transfers from or to other accounts, changes in the scope of
consolidation and others.
(2) Research and development expenditures for the three-month and six-month periods ended June 30, 2020
and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
Description period ended period ended period ended period ended
June 30 June 30 June 30 June 30
(In millions of Korean Won)
Development costs (intangible assets) ￦ 366,440 ￦ 631,341 ￦ 301,605 ￦ 533,340
Research and development (*1) 356,715 689,345 330,892 610,755
Total (*2) ￦ 723,155 ￦ 1,320,686 ￦ 632,497 ￦ 1,144,095

(*1) Presented in manufacturing costs, administrative expenses and other expenses.

(*2) Amortization of development costs is not included.

12. LEASE (AS A LESSEE):

(1) The changes in right-of-use assets for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 734,542 ￦ -
Impact on transition to K-IFRS 1116 - 650,422
Acquisitions 140,019 99,458
Disposals (46,708) (30,803)
Depreciation (98,851) (82,127)
Others (*) 125,947 14,752
End of the period ￦ 854,949 ￦ 651,702

(*) Others include the effect of foreign exchange differences, changes in the scope of consolidation and others.

(2) Lease liabilities as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Undiscounted lease liabilities ￦ 974,765 ￦ 979,101
Discounted lease liabilities 760,805 767,984
Current 142,714 132,388
Non-current 618,091 635,596
13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES:

(1) Investments in joint ventures and associates as of June 30, 2020 and December 31, 2019 are as follows.

June 30, December 31,

2020 2019
Nature of Ownership
Name of the company business Location percentage Book value Book value
(%) (In millions of Korean Won)
Beijing-Hyundai Motor Company
(BHMC) (*1) Manufacturing China 50.00 ￦ 1,090,532 ￦ 1,256,925
Beijing Hyundai Qiche Financing
Company (BHAF) (*1,3) Financing ˝ 53.00 620,744 577,810
Hyundai WIA Automotive Engine
(Shandong) Company (WAE) Manufacturing ˝ 22.00 150,104 154,136
Hyundai-Aptiv AD LLC(*1) R&D USA 26.00 1,217,052 -
Hyundai Capital Bank Europe GmbH
(HCBE) Financing Germany 49.00 272,453 159,948
Kia Motors Corporation Manufacturing Korea 33.88 9,658,754 9,655,017
Hyundai Engineering & Construction
Co., Ltd. Construction ˝ 20.95 2,866,773 2,859,169
Hyundai Transys Inc. Manufacturing ˝ 41.13 1,016,645 1,026,563
Hyundai WIA Corporation ˝ ˝ 25.35 693,210 682,526
Hyundai Motor Securities Co., Ltd. Securities
brokerage ˝ 27.49 296,004 283,446
Hyundai Commercial Inc. Financing ˝ 37.50 272,875 255,800
Eukor Car Carriers Inc. (*2) Transportation ˝ 12.00 171,406 173,212
Hyundai Autoever Corp. IT service ˝ 28.48 148,968 145,076
Haevichi Hotels & Resorts Co., Ltd. Hotelkeeping ˝ 41.90 97,903 101,578
Others 1,060,887 1,044,084
￦ 19,634,310 ￦ 18,375,290

(*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.
(2) The changes in investments in joint ventures and associates for the six-month period ended June 30,
2020 are as follows.

Share of
Beginning of Acquisitions profits (losses) End of the
Name of the company the period (disposals) for the period Dividends Others (*1) period
(In millions of Korean Won)
BHMC ￦ 1,256,925 ￦ - ￦ (199,741) ￦ - ￦ 33,348 ￦ 1,090,532
BHAF 577,810 - 29,570 - 13,364 620,744
WAE 154,136 - (7,757) - 3,725 150,104
Hyundai-Aptiv AD LLC (*2) - 1,295,714 (47,467) - (31,195) 1,217,052
HCBE 159,948 103,275 144 - 9,086 272,453
Kia Motors Corporation 9,655,017 - 151,286 (157,916) 10,367 9,658,754
Hyundai Engineering &
Construction Co., Ltd. 2,859,169 - 24,078 (13,996) (2,478) 2,866,773
Hyundai Transys Inc. 1,026,563 - (9,755) - (163) 1,016,645
Hyundai WIA Corporation 682,526 - 10,907 (4,826) 4,603 693,210
Hyundai Motor Securities
Co., Ltd. 283,446 - 14,772 (4,839) 2,625 296,004
Hyundai Commercial Inc. 255,800 - 19,909 - (2,834) 272,875
Eukor Car Carriers Inc. 173,212 - (7,616) - 5,810 171,406
Hyundai Autoever Corp. 145,076 - 7,868 (4,246) 270 148,968
Haevichi Hotels & Resorts
Co., Ltd. 101,578 - (2,770) - (905) 97,903
Others 1,044,084 15,261 8,845 (3,215) (4,088) 1,060,887
￦ 18,375,290 ￦ 1,414,250 ￦ (7,727) ￦ (189,038) ￦ 41,535 ￦ 19,634,310

(*1) Others consist of changes in accumulated other comprehensive income (loss) and others.
(*2) The joint venture was incorporated during the six-month period ended June 30, 2020, and the acquisition cost is measured
as the fair value of paid cash, contributed patent licenses and the provision of services in exchange for the shares of the joint
venture.

The changes in investments in joint ventures and associates for the six-month period ended June 30,
2019 are as follows.
Share of
Beginning of Acquisitions profits (losses) End of the
Name of the company the period (disposals) for the period Dividends Others (*1) period
(In millions of Korean Won)
BHMC ￦ 1,484,794 ￦ - ￦ (179,675) ￦ - ￦ 50,659 ￦ 1,355,778
BHAF 530,161 - 23,916 - 14,839 568,916
WAE 151,248 10,138 4,272 (10,138) 4,930 160,450
HCBE (*2) - - (597) - 129,987 129,390
Kia Motors Corporation 9,001,505 - 395,534 (123,586) 107,093 9,380,546
Hyundai Engineering &
Construction Co., Ltd. 2,801,084 - 44,129 (11,664) 20,476 2,854,025
Hyundai Transys Inc. 992,259 334 14,633 - (6,606) 1,000,620
Hyundai WIA Corporation 674,651 - 7,480 (4,136) 6,928 684,923
Hyundai Motor Securities
Co., Ltd. 265,711 - 14,278 (3,630) 1,794 278,153
Hyundai Commercial Inc. 218,983 - 15,182 - 3,893 238,058
Eukor Car Carriers Inc. 159,699 - 3,164 - 6,059 168,922
Hyundai Autoever Corp. 129,173 - 7,416 (4,126) 2,985 135,448
Haevichi Hotels & Resorts
Co., Ltd. 104,009 - (1,553) - (6) 102,450
Others 629,962 94,460 5,476 (11,520) 13,608 731,986
￦ 17,143,239 ￦ 104,932 ￦ 353,655 ￦ (168,800) ￦ 356,639 ￦ 17,789,665

(*1) Others consist of changes in accumulated other comprehensive income (loss) and others.
(*2) Others include ￦98,179 million which represents the estimated fair value of the remaining interest in the investment after
the partial disposal during the six-month period ended June 30, 2019.
(3) Summarized financial information of the Group’s major joint ventures and associates as of and for the six-
month period ended June 30, 2020 is as follows.

Current Non-current Current Non-current

Name of the company assets assets liabilities liabilities
(In millions of Korean Won)
BHMC ￦ 3,461,157 ￦ 4,443,631 ￦ 4,860,248 ￦ 591,786
BHAF (*) 6,174,193 - 5,002,978 -
WAE 629,592 603,487 410,822 139,968
Hyundai-Aptiv AD LLC 1,889,701 2,940,992 29,861 46,340
HCBE (*) 2,934,379 - 2,426,668 -
Kia Motors Corporation 23,799,689 34,540,285 19,403,021 10,034,868
Hyundai Engineering &
Construction Co., Ltd. 14,393,321 4,400,272 7,162,926 2,820,009
Hyundai Transys Inc. 3,184,685 2,723,719 1,971,619 1,502,877
Hyundai WIA Corporation 3,450,496 3,148,211 1,682,992 1,801,020
Hyundai Motor Securities Co., Ltd (*) 10,152,983 - 9,122,567 -
Hyundai Commercial Inc. (*) 9,310,547 - 7,991,178 -
Eukor Car Carriers Inc. 332,783 3,202,962 620,426 1,489,115
Hyundai Autoever Corp. 780,704 269,069 417,250 104,232
Haevichi Hotels & Resorts Co., Ltd. 33,582 420,029 214,204 66,792

Profit (loss) for

the period from Other Total
continuing comprehensive comprehensive
Name of the company Sales operations income (loss) income (loss)
(In millions of Korean Won)
BHMC ￦ 2,729,227 ￦ (539,977) ￦ - ￦ (539,977)
BHAF (*) 114,693 55,793 - 55,793
WAE 429,933 (35,261) 17,399 (17,862)
Hyundai-Aptiv AD LLC 527 (61,569) 7 (61,562)
HCBE (*) 49,353 660 16,656 17,316
Kia Motors Corporation 25,935,741 392,278 (7,260) 385,018
Hyundai Engineering &
Construction Co., Ltd. 8,603,014 265,967 (37,973) 227,994
Hyundai Transys Inc. 3,190,360 (37,828) 12,119 (25,709)
Hyundai WIA Corporation 2,861,420 28,106 13,372 41,478
Hyundai Motor Securities Co., Ltd (*) 439,406 53,171 9,549 62,720
Hyundai Commercial Inc. (*) 216,607 53,852 10,599 64,451
Eukor Car Carriers Inc. 668,806 (62,833) 49,139 (13,694)
Hyundai Autoever Corp. 719,798 28,148 993 29,141
Haevichi Hotels & Resorts Co., Ltd. 42,369 (5,310) (30) (5,340)

(*) 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.
 Summarized financial information of the Group’s major joint ventures and associates as of and for the six-
month period ended June 30, 2019 is as follows.

Current Non-current Current Non-current

Name of the company assets assets liabilities liabilities
(In millions of Korean Won)
BHMC ￦ 4,246,823 ￦ 4,312,571 ￦ 5,012,738 ￦ 546,927
BHAF (*) 5,499,120 - 4,425,695 -
WAE 711,829 685,428 383,419 284,522
HCBE (*) 1,232,158 - 1,013,093 -
Kia Motors Corporation 21,318,773 33,177,196 16,917,698 9,218,791
Hyundai Engineering &
Construction Co., Ltd. 13,767,776 4,651,048 6,955,135 2,853,902
Hyundai WIA Corporation 3,719,022 3,233,653 1,861,597 2,021,919
Hyundai Transys Inc. 3,058,188 2,713,570 2,091,842 1,283,336
Hyundai Commercial Inc. (*) 9,499,499 - 8,269,059 -
Hyundai Motor Securities Co., Ltd. (*) 7,866,012 - 6,999,957 -
Eukor Car Carriers Inc. 346,349 3,309,509 525,052 1,725,305
Hyundai Autoever Corp. 746,326 244,795 427,766 81,681
Haevichi Hotels & Resorts Co., Ltd. 31,943 424,629 216,038 65,445

Profit (loss) for

the period from Other Total
continuing comprehensive comprehensive
Name of the company Sales operations income (loss) income (loss)
(In millions of Korean Won)
BHMC ￦ 4,196,555 ￦ (370,362) ￦ - ￦ (370,362)
BHAF (*) 105,428 45,817 - 45,817
WAE 641,549 19,420 68,167 87,587
HCBE (*) 32,947 (1,903) 7,300 5,398
Kia Motors Corporation 26,951,004 1,154,498 322,356 1,476,854
Hyundai Engineering &
Construction Co., Ltd. 8,559,547 348,182 83,241 431,423
Hyundai WIA Corporation 3,741,415 20,272 27,894 48,166
Hyundai Transys Inc. 3,707,425 78,718 2,426 81,144
Hyundai Commercial Inc. (*) 246,729 38,374 27,023 65,397
Hyundai Motor Securities Co., Ltd. (*) 393,013 50,742 (58,412) (7,670)
Eukor Car Carriers Inc. 872,475 30,795 45,877 76,672
Hyundai Autoever Corp. 715,175 26,573 2,120 28,693
Haevichi Hotels & Resorts Co., Ltd. 57,350 (1,012) (14) (1,026)

(*) 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.
(4) Summarized additional financial information of the Group’s major joint ventures as of and for the six-month
period ended June 30, 2020 is as follows.

Cash and Current

Non-current Depreciation
Name of the cash financial
financial and Interest Interest Income tax
company equivalents liabilities
liabilities amortization income expenses expense
(In millions of Korean Won)
BHMC ￦ 474,074 ￦ 1,128,239 ￦ 253,854 ￦ 233,851 ￦ 6,495 ￦ 48,777 ￦ 28
BHAF(*) 1,463,939 4,774,679 - 3,604 212,970 93,080 18,733
Hyundai-Aptiv
AD LLC 1,878,709 29,861 46,340 20,071 965 27 (16,949)

(*) Operating finance business of which total assets (liabilities) are included in current financial liabilities as BHAF does not
distinguish current and non-current portion in its separate financial statements.

Summarized additional financial information of the Group’s major joint ventures as of and for the six-month
period ended June 30, 2019 is as follows.

Cash and Current

Non-current Depreciation
Name of the cash financial
financial and Interest Interest Income tax
company equivalents liabilities
liabilities amortization income expenses expense
(In millions of Korean Won)
BHMC ￦ 896,775 ￦ 1,214,116 ￦ 109,620 ￦ 214,115 ￦ 22,785 ￦ 73,789 ￦ (25)
BHAF(*) 928,248 4,042,721 - 2,632 200,751 93,992 15,372

(*) Operating finance business of which total assets (liabilities) are included in current financial liabilities as BHAF does not
distinguish current and non-current portion in its separate financial statements.

(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 June 30, 2020 is as follows.

Group’s Unrealised
share of profit (loss) Carrying
Name of the company net assets Goodwill and others amounts
(In millions of Korean Won)
BHMC ￦ 1,128,477 ￦ - ￦ (37,945) ￦ 1,090,532
BHAF 620,744 - - 620,744
WAE 150,104 - - 150,104
Hyundai-Aptiv AD LLC 1,236,169 - (19,117) 1,217,052
HCBE 248,778 22,341 1,334 272,453
Kia Motors Corporation 9,527,085 197,089 (65,420) 9,658,754
Hyundai Engineering & Construction
Co., Ltd. (*) 2,135,397 731,362 14 2,866,773
Hyundai Transys Inc. 1,002,836 - 13,809 1,016,645
Hyundai WIA Corporation 789,628 - (96,418) 693,210
Hyundai Motor Securities Co., Ltd. 254,870 40,052 1,082 296,004
Hyundai Commercial Inc. 272,875 - - 272,875
Eukor Car Carriers Inc. 171,144 - 262 171,406
Hyundai Autoever Corp. 148,968 - - 148,968
Haevichi Hotels & Resorts Co., Ltd. (*) 94,327 3,576 - 97,903

(*) 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.
 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, 2019 is as follows.

Group’s Unrealised
share of profit (loss) Carrying
Name of the company net assets Goodwill and others amounts
(In millions of Korean Won)
BHMC ￦ 1,302,827 ￦ - ￦ (45,902) ￦ 1,256,925
BHAF 577,810 - - 577,810
WAE 154,136 - - 154,136
HCBE 137,205 22,341 402 159,948
Kia Motors Corporation 9,544,369 197,089 (86,441) 9,655,017
Hyundai Engineering & Construction
Co., Ltd. (*) 2,127,795 731,362 12 2,859,169
Hyundai Transys Inc. 1,011,928 - 14,635 1,026,563
Hyundai WIA Corporation 776,412 - (93,886) 682,526
Hyundai Motor Securities Co., Ltd. 243,394 40,052 - 283,446
Hyundai Commercial Inc. 255,800 - - 255,800
Eukor Car Carriers Inc. 172,950 - 262 173,212
Hyundai Autoever Corp. 145,076 - - 145,076
Haevichi Hotels & Resorts Co., Ltd. (*) 98,002 3,576 - 101,578

(*) 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 listed equity securities as of June 30, 2020 is as follows.

Total number of
Name of the company Price per share shares Market value
(In millions of Korean Won, except price per share)
Kia Motors Corporation ￦ 32,050 137,318,251 ￦ 4,401,050
Hyundai Engineering & Construction Co., Ltd. 33,050 23,327,400 770,971
Hyundai WIA Corporation 34,550 6,893,596 238,174
Hyundai Motor Securities Co., Ltd 8,280 8,065,595 66,783
Hyundai Autoever Corp. 37,550 5,980,000 224,549

14. FINANCIAL SERVICES RECEIVABLES:

(1) Financial services receivables as of June 30, 2020 and December 31, 2019 are as follows.
June 30, December 31,
Description 2020 2019
(In millions of Korean Won)
Loans ￦ 49,695,623 ￦ 46,523,263
Card receivables 14,919,823 15,266,417
Financial lease receivables 2,476,927 2,706,819
Others 36,255 36,217
67,128,628 64,532,716
Loss allowance (1,580,086) (1,480,555)
Loan origination fee (859,983) (771,405)
Present value discount accounts (24,347) (22,130)
￦ 64,664,212 ￦ 62,258,626
(2) The changes in loss allowance of financial services receivables for the six-month periods ended June 30, 2020
and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Beginning of the period ￦ 1,480,555 ￦ 1,368,759
Impairment loss 467,778 369,749
Write-off (205,379) (142,124)
Disposals and others (173,490) (229,198)
Effect of foreign exchange differences 10,622 9,247
End of the period ￦ 1,580,086 ￦ 1,376,433

(3) Gross investments in financial leases and their present value of minimum lease receipts as of June 30, 2020
and December 31, 2019 are as follows.

June 30, 2020 December 31, 2019

Gross Present value Gross Present value
investments of minimum investments of minimum
in financial lease payment in financial lease payment
Description leases receivable leases receivable
(In millions of Korean Won)
Not later than one year ￦ 1,017,621 ￦ 902,936 ￦ 1,145,339 ￦ 1,014,549
Later than one year and not later
than five years 1,672,022 1,565,756 1,808,521 1,682,796
Later than five years 4,208 4,053 5,225 5,030
￦ 2,693,851 ￦ 2,472,745 ￦ 2,959,085 ￦ 2,702,375

(4) Unearned interest income of financial leases as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Gross investments in financial lease ￦ 2,693,851 ￦ 2,959,085
Net lease investments:
Present value of minimum lease payment receivable 2,472,745 2,702,375
Present value of unguaranteed residual value 4,182 4,444
2,476,927 2,706,819
Unearned interest income ￦ 216,924 ￦ 252,266

15. INVESTMENTS IN OPERATING LEASES (AS A LESSOR):

(1) Investments in operating leases as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Acquisition cost ￦ 25,059,278 ￦ 25,143,563
Accumulated depreciation (3,635,445) (3,945,005)
Accumulated impairment loss (156,571) (130,218)
￦ 21,267,262 ￦ 21,068,340
(2) Future minimum lease payment receivable related to investments in operating leases as of June 30, 2020 and
December 31, 2019 is as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Not later than one year ￦ 3,937,945 ￦ 3,856,057
Later than one year and not later
than five years 3,638,120 4,027,982
Later than five years 13 3
￦ 7,576,078 ￦ 7,884,042

16. BORROWINGS AND DEBENTURES:

(1) Short-term borrowings as of June 30, 2020 and December 31, 2019 are as follows.

Annual June 30, December 31,

Description Lender interest rate 2020 2019
(%) (In millions of Korean Won)
Overdrafts Citi Bank and others 0.10~1.23 ￦ 965,385 ￦ 256,616
General borrowings Korea Development Bank
and others 0.18~5.60 3,252,131 3,736,689
Borrowings collateralized
by trade receivables KEB Hana Bank and others 0.09~2.17 1,937,286 2,898,539
Banker’s Usance KEB Hana Bank and others 0.09~2.96 420,185 504,769
Commercial paper Shinhan Bank and others 0.45~4.20 4,598,082 4,429,668
Asset-backed securities RBC and others 0.60~0.91 956,603 744,412
￦ 12,129,672 ￦ 12,570,693

(2) Long-term debt as of June 30, 2020 and December 31, 2019 are as follows.

Annual June 30, December 31,

Description Lender interest rate 2020 2019
(%) (In millions of Korean Won)
General borrowings Mizuho Bank and others 0.10~14.20 ￦ 8,003,963 ￦ 7,088,777
Credit facilities NH Bank and others 1.78~2.09 348,754 160,463
Commercial paper KTB Investment & Securities
and others 1.65~2.55 1,670,000 2,380,000
Asset-backed securities HSBC and others 0.61~2.79 7,278,498 5,885,638
Others(*) NH Investment & Securities
and others 435,607 435,607
17,736,822 15,950,485
Less: present value discounts (98,767) (106,883)
Less: current maturities (5,118,722) (4,626,514)
￦ 12,519,333 ￦ 11,217,088

(*) The Group transferred a portion of its voting shares to a third party with the total revenue swap agreement. 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 June 30, 2020 and December 31, 2019 are as follows.

Latest Annual June 30, December 31,

Description maturity date interest rate 2020 2019
(%) (In millions of Korean Won)
Convertible bonds (*) June 17, 2023 3.70 ￦ 229,928 ￦ -
Non-guaranteed public debentures June 28, 2030 1.17~4.04 29,969,297 23,691,000
Non-guaranteed private debentures April 8, 2030 1.11~6.38 16,518,816 17,872,007
Asset-backed securities June 15, 2026 1.20~3.31 13,173,911 11,486,855
59,891,952 53,049,862
Less: discount on debentures (118,176) (92,004)
Less: current maturities (12,585,317) (11,152,044)
￦ 47,188,459 ￦ 41,805,814

(*) The terms and conditions of the convertible bonds as of June 30, 2020 are as follows and the consideration for conversion
option at the time of issuance was classified as equity.

Description
Name Hyundai Rotem Company the 30th non-guaranteed convertible bonds in bearer
form
Face value ￦ 240,000 million
Issue price ￦ 240,000 million
Issue date June 17, 2020
Maturity date June 17, 2023
Coupon rate 1.00%
Interest payment Coupon rate 1.00% per annum, paid every three months
Yield to maturity 3.70%
Redemption at maturity Bonds that are not converted until maturity will be redeemed on the maturity
date at 108.5250% of the principal amount, corresponding to 3.70% yield-to-
maturity (YTM) per annum (compounding quarterly)
Conversion period July 17, 2020 ~ May 17, 2023
Conversion price ￦9,750 per share (the conversion price shall be adjusted in accordance with the
criteria set out in the agreement, such as a paid-in capital increase with the
issue price lower than the market price and others)
Call option Call option on outstanding balance of convertible bonds can be exercised from
one month after the issue date of convertible bonds (July 17, 2020) to one
month before the maturity date (May 17, 2023)

17. PROVISIONS:

The changes in provisions for the six-month period ended June 30, 2020 are as follows.

Other long-term
Description Warranty employee benefits Others
(In millions of Korean Won)
Beginning of the period ￦ 5,447,307 ￦ 726,356 ￦ 971,266
Charged 1,239,895 34,820 374,199
Utilized (1,022,924) (34,277) (490,267)
Effect of foreign exchange differences and
others 28,098 115 2,253
End of the period ￦ 5,692,376 ￦ 727,014 ￦ 857,451
 The changes in provisions for the six-month period ended June 30, 2019 are as follows.

Other long-term
Description Warranty employee benefits Others
(In millions of Korean Won)
Beginning of the period ￦ 5,177,128 ￦ 703,526 ￦ 919,250
Charged 1,084,145 33,807 428,708
Utilized (1,036,695) (39,793) (421,993)
Effect of foreign exchange differences and
others 66,439 19 28,049
End of the period ￦ 5,291,017 ￦ 697,559 ￦ 954,014

18. OTHER FINANCIAL LIABILITIES:

(1) Other financial liabilities as of June 30, 2020 are as follows.

June 30, 2020
Description Current Non-current
(In millions of Korean Won)
Financial liabilities measured at FVPL ￦ 447 ￦ 57,671
Derivative liabilities that are effective hedging instruments 31,030 206,515
￦ 31,477 ￦ 264,186

(2) Other financial liabilities as of December 31, 2019 are as follows.

December 31, 2019
Description Current Non-current
(In millions of Korean Won)
Financial liabilities measured at FVPL ￦ 4,532 ￦ 31,625
Derivative liabilities that are effective hedging instruments 5,438 143,571
￦ 9,970 ￦ 175,196

19. OTHER LIABILITIES:

Other liabilities as of June 30, 2020 and December 31, 2019 are as follows.

June 30, 2020 December 31, 2019

Description Current Non-current Current Non-current
(In millions of Korean Won)
Advances received ￦ 1,307,984 ￦ 24,161 ￦ 1,482,982 ￦ 22,559
Withholdings 999,771 191,157 1,020,551 197,722
Accrued expenses 3,344,524 - 2,850,091 -
Unearned income 660,380 1,607,274 608,090 1,455,882
Due to customers for contract work 979,311 - 775,972 -
Others 669,193 799,134 523,143 876,656
￦ 7,961,163 ￦ 2,621,726 ￦ 7,260,829 ￦ 2,552,819
 20. FINANCIAL INSTRUMENTS:

(1) Financial assets by categories as of June 30, 2020 are as follows.

Derivative
Financial Financial assets that
assets Financial assets assets are effective
measured at measured at measured at hedging
Description FVPL amortized cost FVOCI instruments Book value Fair value
(In millions of Korean Won)
Cash and
cash equivalents ￦ - ￦ 10,883,777 ￦ - ￦ - ￦ 10,883,777 ￦ 10,883,777
Short-term and long-
term financial
instruments - 5,586,557 - - 5,586,557 5,586,557
Trade notes and
accounts receivable - 2,815,355 - - 2,815,355 2,815,355
Other receivables - 3,068,315 - - 3,068,315 3,068,315
Other financial assets 12,215,129 38,747 1,947,589 411,586 14,613,051 14,613,051
Other assets 17,081 307,904 - - 324,985 324,985
Financial services
receivables - 64,664,212 - - 64,664,212 63,675,500
￦ 12,232,210 ￦ 87,364,867 ￦ 1,947,589 ￦ 411,586 ￦ 101,956,252 ￦ 100,967,540

Financial assets by categories as of December 31, 2019 are as follows.

Derivative
Financial Financial assets that
Financial assets assets assets are effective
measured at measured at measured at hedging
Description FVPL amortized cost FVOCI instruments Book value Fair value
(In millions of Korean Won)
Cash and
cash equivalents ￦ - ￦ 8,681,971 ￦ - ￦ - ￦ 8,681,971 ￦ 8,681,971
Short-term and long-
term financial
instruments - 8,095,888 - - 8,095,888 8,095,888
Trade notes and
accounts receivable - 3,640,520 - - 3,640,520 3,640,520
Other receivables - 2,567,688 - - 2,567,688 2,567,688
Other financial assets 9,937,423 109,546 2,278,634 183,836 12,509,439 12,509,439
Other assets 18,406 312,760 - - 331,166 331,166
Financial services
receivables - 62,258,626 - - 62,258,626 62,014,023
￦ 9,955,829 ￦ 85,666,999 ￦ 2,278,634 ￦ 183,836 ￦ 98,085,298 ￦ 97,840,695
(2) Financial liabilities by categories as of June 30, 2020 are as follows.

Financial Financial liabilities Derivative liabilities

liabilities measured at that are effective
Description measured at FVPL amortized cost hedging instruments Book value Fair value
(In millions of Korean Won)
Trade notes and
accounts payable ￦ - ￦ 7,346,250 ￦ - ￦ 7,346,250 ￦ 7,346,250
Other payables - 4,300,745 - 4,300,745 4,300,745
Borrowings and
debentures - 89,541,503 - 89,541,503 90,634,029
Other financial
liabilities 58,118 - 237,545 295,663 295,663
Lease liabilities - 760,805 - 760,805 760,805
Other liabilities - 2,362,721 - 2,362,721 2,362,721
￦ 58,118 ￦ 104,312,024 ￦ 237,545 ￦ 104,607,687 ￦ 105,700,213

Financial liabilities by categories as of December 31, 2019 are as follows.

Financial Financial liabilities Derivative liabilities

liabilities measured at that are effective
Description measured at FVPL amortized cost hedging instruments Book value Fair value
(In millions of Korean Won)
Trade notes and
accounts payable ￦ - ￦ 7,669,424 ￦ - ￦ 7,669,424 ￦ 7,669,424
Other payables - 5,300,043 - 5,300,043 5,300,043
Borrowings and
debentures - 81,372,153 - 81,372,153 81,912,936
Other financial
liabilities 36,157 - 149,009 185,166 185,166
Lease liabilities - 767,984 - 767,984 767,984
Other liabilities - 2,432,607 - 2,432,607 2,432,607
￦ 36,157 ￦ 97,542,211 ￦ 149,009 ￦ 97,727,377 ￦ 98,268,160

(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 June 30, 2020 are
as follows.

June 30, 2020

Description Level 1 Level 2 Level 3 Total
(In millions of Korean Won)
Financial assets:
Financial assets measured
at FVPL ￦ 93,666 ￦ 11,575,443 ￦ 563,101 ￦ 12,232,210
Derivative assets that are
effective hedging instruments - 411,586 - 411,586
Financial assets measured
at FVOCI 831,176 350,869 765,544 1,947,589
￦ 924,842 ￦ 12,337,898 ￦ 1,328,645 ￦ 14,591,385
Financial liabilities:
Financial liabilities measured
at FVPL ￦ - ￦ 58,118 ￦ - ￦ 58,118
Derivative liabilities that are
effective hedging instruments - 237,545 - 237,545
￦ - ￦ 295,663 ￦ - ￦ 295,663

Fair value measurements of financial instruments by fair value hierarchy levels as of December 31, 2019
are as follows.

December 31, 2019

Description Level 1 Level 2 Level 3 Total
(In millions of Korean Won)
Financial assets:
Financial assets measured
at FVPL ￦ 94,656 ￦ 9,288,555 ￦ 572,618 ￦ 9,955,829
Derivative assets that are
effective hedging instruments - 183,836 - 183,836
Financial assets measured
at FVOCI 1,180,739 349,804 748,091 2,278,634
￦ 1,275,395 ￦ 9,822,195 ￦ 1,320,709 ￦ 12,418,299
Financial liabilities:
Financial liabilities measured
at FVPL ￦ - ￦ 36,157 ￦ - ￦ 36,157
Derivative liabilities that are
effective hedging instruments - 149,009 - 149,009
￦ - ￦ 185,166 ￦ - ￦ 185,166
The changes in financial instruments classified as Level 3 for the six-month period ended June 30, 2020 are as follows.

Beginning End of
Description of the period Purchases Disposals Valuation Others the period
(In millions of Korean Won)
Financial assets measured
at FVPL ￦ 572,618 ￦ 17,802 ￦ (24,113) ￦ (9,513) ￦ 6,307 ￦ 563,101
Financial assets measured
at FVOCI 748,091 15,522 - 3,409 (1,478) 765,544

The changes in financial instruments classified as Level 3 for the six-month period ended June 30, 2019 are as follows.

Beginning End of
Description of the period Purchases Disposals Valuation Others the period
(In millions of Korean Won)
Financial assets measured
at FVPL ￦ 228,572 ￦ 201,302 ￦ (9,102) ￦ (12,233) ￦ 26,880 ￦ 435,419
Financial assets measured
at FVOCI 376,986 57,777 (506) 976 (26,880) 408,353

(4) Interest income, dividend income and interest expenses by categories of financial instruments for the six-month
period ended June 30, 2020 are as follows.

Six-month period ended June 30,

2020
Interest Dividend Interest
Description income income expenses
(In millions of Korean Won)
Non-financial services:
Financial assets measured
at amortized cost ￦ 144,236 ￦ - ￦ -
Financial assets measured at FVPL 53,813 - -
Financial assets measured at FVOCI - 31,486 -
Financial liabilities measured
at amortized cost - - 145,837
￦ 198,049 ￦ 31,486 ￦ 145,837
Financial services:
Financial assets measured
at amortized cost ￦ 1,954,274 ￦ - ￦ -
Financial assets measured at FVPL 3,319 1,950 -
Financial assets measured at FVOCI 556 - -
Financial liabilities measured
at amortized cost - - 946,915
￦ 1,958,149 ￦ 1,950 ￦ 946,915
 Interest income, dividend income and interest expenses by categories of financial instruments for the six-
month period ended June 30, 2019 are as follows.

Six-month period ended June 30,

2019
Interest Dividend Interest
Description income income expenses
(In millions of Korean Won)
Non-financial services:
Financial assets measured
at amortized cost ￦ 207,136 ￦ - ￦ -
Financial assets(liabilities) measured
at FVPL 60,850 - 9,301
Financial assets measured at FVOCI - 33,231 -
Financial liabilities measured
at amortized cost - - 143,100
￦ 267,986 ￦ 33,231 ￦ 152,401
Financial services:
Financial assets measured
at amortized cost ￦ 1,829,982 ￦ - ￦ -
Financial assets measured at FVPL 4,055 2,244 -
Financial assets measured at FVOCI 205 - -
Financial liabilities measured
at amortized cost - - 874,166
￦ 1,834,242 ￦ 2,244 ￦ 874,166

(5) The commission income (financial services revenue) arising from financial assets or liabilities other than
financial assets or liabilities measured at FVPL for the six-month periods ended June 30, 2020 and 2019 are
￦399,254 million and ￦439,880 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 six-month periods ended June 30, 2020 and 2019 are ￦155,999 million and ￦119,344 million,
respectively.

(6) 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 six-month period ended June 30, 2020.

(7) 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.

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 others, and
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 industry are used to estimate the
future cash flow. The discount rate used to discount the future cash flows, is calculated by applying the
Capital Asset Pricing Model (CAPM), 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.

- Total return swap (Derivatives)

The fair value of total revenue swaps (derivatives) is measured based on the stock price volatility up to the
fair value, exercise price, maturity and maturity of the underlying asset, using the binomial option pricing
model. The discount rate used in the binomial option pricing model is based on the risk-free interest rate,
which corresponds to the remaining maturity, and the stock price volatility up to maturity uses the historical
volatility of the financial sector over the past one year. The fair value of the underlying assets is measured
using the cash flow discount model. In order to estimate the future cash flows, assumptions reflecting the
business plan and current industry such as sales growth rate, pre-tax operating profit margin or discount rates
etc. and estimates such as observable market price or rates are partially used. The discount rate used to
discount future cash flows was calculated by applying the Capital Asset Pricing Model (CAPM), using data
from similar listed companies. The Group classifies the fair value measurement of total revenue swap
(derivatives) as Level 3 in the fair value hierarchy based on the assumption that the effect of the above
assumptions and estimates on the fair value of the total revenue swap classified.
(8) 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 Valuation Unobservable

Description June 30, 2020 techniques inputs Description of relationship
(In millions of
Korean Won)
Unlisted equity ￦ 1,328,645 Discounted Sales growth rate If the sales growth rate and the
securities, cash flow pre-tax operating income ratio
total and others Pre-tax operating rise or the discount rate declines,
income margin
return swap the fair value increases.
and others ratio
Discount rate

The Group does not expect that changes in significant unobservable inputs to reflect reasonably possible alternative
assumptions would have a significant impact on the fair value

21. CAPITAL STOCK:

The Company’s number of shares authorized is 600,000,000 shares. Common stock and preferred stock as of
June 30, 2020 and December 31, 2019 are as follows.

(1) Common stock

Description June 30, 2020 December 31, 2019

(In millions of Korean Won, except par value)
Issued 213,668,187 shares 213,668,187 shares
Par value ￦ 5,000 ￦ 5,000
Capital stock 1,157,982 1,157,982

The Company completed stock retirement of 10,000,000 common shares, 1,320,000 common shares and 6,608,292
common shares as of March 5, 2001, May 4, 2004 and July 27, 2018 respectively. Due to these stock retirements, the
total face value of outstanding stock differs from the capital stock amount.

(2) Preferred stock

Description Par value Issued Korean Won Dividend rate

(In millions of
Korean Won)
1st preferred stock ￦ 5,000 24,356,685 shares ￦ 125,550 Dividend rate of common stock + 1%
2nd preferred stock ˝ 36,485,451 shares 193,069 The lowest stimulated dividend rate : 2%
3rd preferred stock ˝ 2,428,735 shares 12,392 The lowest stimulated dividend rate : 1%
63,270,871 shares ￦ 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. 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 June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Paid-in capital in excess of par value ￦ 3,321,334 ￦ 3,321,334
Others 875,665 875,681
￦ 4,196,999 ￦ 4,197,015

23. OTHER CAPITAL ITEMS:

Other capital items consist of treasury stocks purchased for the stabilization of stock price. Number of treasury
stocks as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(Number of shares)
Common stock 13,091,308 11,835,151
1st preferred stock 2,186,993 2,046,959
2nd preferred stock 1,353,570 1,142,140
3rd preferred stock 48,574 34,545

24. ACCUMULATED OTHER COMPREHENSIVE LOSS:

(1) Accumulated other comprehensive loss as of June 30, 2020 is as follows.

Description June 30, 2020

(In millions of Korean Won)
Gain on valuation of financial assets measured at FVOCI ￦ 349,499
Loss on valuation of financial assets measured at FVOCI (525,337)
Gain on valuation of cash flow hedge derivatives 12,067
Loss on valuation of cash flow hedge derivatives (102,847)
Gain on share of the other comprehensive income of
equity-accounted investees 40,048
Loss on share of the other comprehensive income of
equity-accounted investees (671,041)
Loss on foreign operations translation, net (1,547,461)
￦ (2,445,072)

(2) Accumulated other comprehensive loss as of December 31, 2019 is as follows.

Description December 31, 2019

(In millions of Korean Won)
Gain on valuation of financial assets measured at FVOCI ￦ 489,235
Loss on valuation of financial assets measured at FVOCI (419,160)
Gain on valuation of cash flow hedge derivatives 17,117
Loss on valuation of cash flow hedge derivatives (45,500)
Gain on share of the other comprehensive income of
equity-accounted investees 34,967
Loss on share of the other comprehensive income of
equity-accounted investees (714,955)
Loss on foreign operations translation, net (1,714,726)
￦ (2,353,022)
25. RETAINED EARNINGS:

Retained earnings as of June 30, 2020 and December 31, 2019 are as follows

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Legal reserve (*) ￦ 744,836 ￦ 744,836
Discretionary reserve 48,333,997 46,591,396
Unappropriated 19,035,233 20,913,401
￦ 68,114,066 ￦ 68,249,633

(*) 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.

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 June 30, 2020, hybrid bond is as follows.

Annual
Description Issue date Maturity date interest rate June 30, 2020
(%) (In millions of Korean Won)
The 731st Hybrid Tier 1 (Private) July 5, 2018 July 5, 2048 4.70 ￦ 300,000
Issue cost (760)
￦ 299,240

Hyundai Rotem Company, a subsidiary of the Company, issued hybrid bond and the Group classified it as
equity (non-controlling interests). As of June 30, 2020, hybrid bond is as follows.

Annual
Description Issue date Maturity date interest rate June 30, 2020
(%) (In millions of Korean Won)
November 8, November 8,
The 1st Hybrid Tier 1 (Private) 2019 2049 4.50 ￦ 106,000
December 23, December 23,
The 2nd Hybrid Tier 1 (Private) 2019 2049 4.50 45,000
Issue cost (677)
￦ 150,323

(2) As of June 30, 2020, the conditions of hybrid bond that Hyundai Card Co., Ltd., a subsidiary of the
Company issued are as follows.

Description
Maturity Thirty years (Maturity extension is possible according to the issuer's decision
upon maturity)
Interest rate Issue date ~ July 5, 2023 : An annual fixed interest rate 4.7%
Increase of 2% after five years in accordance with Step-up clause at one time only
Interest payment
Three months, optional postponement of payment
condition
Others Repayment before maturity by issuer is available after five years from issue date
 As of June 30, 2020, the conditions of hybrid bond that Hyundai Rotem Company, a subsidiary of the
Company issued are as follows.

Description
Maturity Thirty years (Maturity extension is possible according to the issuer's decision
upon maturity)
Interest rate Issue date to two years : An annual fixed interest rate 4.5%
Two to three years : Initial interest rate + 2.5 % + adjusted interest rate(*)
After three years: Interest rate at the day before each anniversary + 0.5%
Interest payment
Three months, optional postponement of payment
condition
Others Repayment before maturity by issuer is available after two years from issue date

(*) The interest rates, which deducts the interest rate of two years maturity treasury bond at 2 working dates before the issue
date (zero when it is minus) from the interest rate of two years maturity treasury bond at 2 working days before 2nd
anniversary of the issue date.

27. SALES:

(1) Sales for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Sales of goods ￦ 18,171,034 ￦ 38,929,842 ￦ 22,940,414 ￦ 43,073,497
Rendering of services 438,049 1,081,911 600,770 1,130,283
Royalties 21,530 78,697 16,718 35,495
Financial services revenue 2,512,239 5,543,497 2,695,730 5,336,217
Revenue related to
construction contracts 636,135 1,252,526 622,029 1,199,543
Others 80,004 291,966 90,692 178,397
￦ 21,858,991 ￦ 47,178,439 ￦ 26,966,353 ￦ 50,953,432

(2) As of June 30, 2020, 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 ￦ 1,235,909 ￦ 1,517,802
28. SELLING AND ADMINISTRATIVE EXPENSES:

Selling and administrative expenses for the three-month and six-month periods ended June 30, 2020 and 2019 are
as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Selling expenses:
Export expenses ￦ 9,600 ￦ 24,056 ￦ 19,708 ￦ 41,587
Overseas market expenses 61,478 154,221 86,861 181,830
Advertisements and sales promotion 407,296 1,024,589 596,054 1,151,124
Sales commissions 274,949 455,867 216,574 413,611
Expenses for warranties 518,425 1,199,703 602,087 1,112,910
Transportation expenses 21,848 51,125 31,456 59,838
1,293,596 2,909,561 1,552,740 2,960,900
Administrative expenses:
Payroll 664,964 1,313,683 647,237 1,284,539
Post-employment benefits 46,018 92,370 45,757 91,204
Welfare expenses 108,131 226,571 103,444 211,088
Service charges 331,346 673,287 339,552 636,306
Research 312,265 601,386 301,949 547,705
Others 365,186 706,182 394,636 741,364
1,827,910 3,613,479 1,832,575 3,512,206
￦ 3,121,506 ￦ 6,523,040 ￦ 3,385,315 ￦ 6,473,106

29. GAIN (LOSS) ON INVESTMENTS IN JOINT VENTURES AND ASSOCIATES:

Gain (loss) on investments in joint ventures and associates for the three-month and six-month periods ended June
30, 2020 and 2019 is as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Gain (loss) on share of earnings of
equity-accounted investees, net ￦ (51,122) ￦ (7,727) ￦ 80,174 ￦ 353,655
Gain on disposals of investments in
associates (*) 12 42,436 1,023 14,245
￦ (51,110) ￦ 34,709 ￦ 81,197 ￦ 367,900

(*) The amount includes remeasurement to fair value of existing shares as a result of business combination.
30. FINANCE INCOME AND EXPENSES:

(1) Finance income for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Interest income ￦ 88,586 ￦ 198,049 ￦ 134,733 ￦ 267,986
Gain on foreign exchange transactions 8,117 24,234 39,468 55,099
Gain on foreign currency translation 140,165 117,746 17,792 63,634
Dividend income 86 31,486 - 33,231
Gain on derivatives 63,840 81,293 7,534 8,612
Others 1,141 2,083 1,459 5,049
￦ 301,935 ￦ 454,891 ￦ 200,986 ￦ 433,611

(2) Finance expenses for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Interest expenses ￦ 78,286 ￦ 160,650 ￦ 85,073 ￦ 168,230
Loss on foreign exchange transactions 100,935 106,315 7,540 18,355
Loss on foreign currency translation 98,059 274,814 31,524 53,657
Loss on derivatives and others 59,864 24,735 22,320 25,637
￦ 337,144 ￦ 566,514 ￦ 146,457 ￦ 265,879

31. OTHER INCOME AND EXPENSES:

(1) Other income for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Gain on foreign exchange transactions ￦ 145,005 ￦ 301,013 ￦ 168,922 ￦ 262,408
Gain on foreign currency translation 162,728 130,085 101,994 159,299
Gain on disposals of PP&E 10,428 15,994 4,028 6,981
Commission income 16,476 21,745 42,638 63,608
Rental income 23,851 48,609 21,287 42,995
Others 118,617 189,917 69,226 151,974
￦ 477,105 ￦ 707,363 ￦ 408,095 ￦ 687,265

(2) Other expenses for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Loss on foreign exchange transactions ￦ 166,737 ￦ 360,388 ￦ 166,644 ￦ 231,766
Loss on foreign currency translation 78,146 157,074 86,281 129,146
Loss on disposals of PP&E 18,242 32,107 9,441 36,452
Donations 17,158 28,718 22,913 30,993
Others 104,558 185,725 110,281 254,349
￦ 384,841 ￦ 764,012 ￦ 395,560 ￦ 682,706
32. EXPENSES BY NATURE:

Expenses by nature for the three-month and six-month periods ended June 30, 2020 and 2019 are as follows.

2020 2019
Three-month Six-month Three-month Six-month
period ended period ended period ended period ended
Description June 30 June 30 June 30 June 30
(In millions of Korean Won)
Changes in inventories ￦ 3,547 ￦ 27,733 ￦ (462,655) ￦ (628,842)
Raw materials and merchandise used 11,586,561 25,483,112 16,290,559 30,362,485
Employee benefits 2,197,736 4,481,022 2,268,712 4,514,520
Depreciation 675,817 1,338,802 628,890 1,234,312
Amortization 363,159 709,279 321,945 636,312
Others 6,826,691 14,448,406 7,076,737 13,454,755
Total (*) ￦ 21,653,511 ￦ 46,488,354 ￦ 26,124,188 ￦ 49,573,542

(*) 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:

(1) Basic 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
period.

Basic earnings per common stock and preferred stock for the three-month and six-month periods ended June 30,
2020 are computed as follows.

Three-month period ended June 30, 2020 Six-month period ended June 30, 2020
Weighted- Weighted-
Profit average number Basic Profit average number Basic
attributable to of shares earnings attributable to of shares earnings
Description shares outstanding (*1) per share shares outstanding (*1) per share
(In millions of Korean Won, except per share amounts)
Common stock ￦ 174,329 200,576,879 ￦ 869 ￦ 530,484 200,787,326 ￦ 2,642
1st Preferred stock (*2) 19,546 22,169,692 882 59,188 22,193,837 2,667
2nd Preferred stock 31,413 35,131,881 894 94,673 35,167,974 2,692
3rd Preferred stock 2,098 2,380,161 882 6,355 2,382,550 2,667

(*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 K-IFRS 1033 ‘Earnings per Share’.

Basic earnings per common stock and preferred stock for the three-month and six-month periods ended June 30,
2019 are computed as follows.

Three-month period ended June 30, 2019 Six-month period ended June 30, 2019
Weighted- Weighted-
Profit average number Basic Profit average number Basic
attributable to of shares earnings attributable to of shares earnings
Description shares outstanding (*1) per share shares outstanding (*1) per share
(In millions of Korean Won, except per share amounts)
Common stock ￦ 707,545 202,714,520 ￦ 3,490 ￦ 1,345,893 202,932,871 ￦ 6,632
1st Preferred stock (*2) 78,510 22,413,258 3,503 149,370 22,438,196 6,657
2nd Preferred stock 124,783 35,496,735 3,515 237,450 35,540,674 6,681
3rd Preferred stock 8,422 2,404,448 3,503 16,024 2,406,262 6,659

(*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 K-IFRS 1033 ‘Earnings per Share’.
(2) Diluted earnings per common stock and preferred stock

Diluted earnings per common stock and preferred stock are computed by considering all dilutive potential ordinary
shares. The Group adjusts profit attributable to common stock and preferred stock by assuming conversion of all
convertible bonds of Hyundai Rotem Company, a subsidiary of the Company, at the issue date.

Diluted earnings per common stock and preferred stock for the three-month and six-month periods ended June 30,
2020 are computed as follows. The Group does not compute diluted earnings per common stock for the three-
month and six-month periods ended June 30, 2019, since there were no dilutive items during the period.

Three-month period ended June 30, 2020 Six-month period ended June 30, 2020
Weighted- Weighted-
Profit average number Diluted Profit average number Diluted
attributable to of shares earnings attributable to of shares earnings
Description shares (*3) outstanding (*1) per share shares (*3) outstanding (*1) per share
(In millions of Korean Won, except per share amounts)
Common stock ￦ 174,119 200,576,879 ￦ 868 ￦ 530,274 200,787,326 ￦ 2,641
1st Preferred stock (*2) 19,523 22,169,692 881 59,165 22,193,837 2,666
2nd Preferred stock 31,376 35,131,881 893 94,636 35,167,974 2,691
3rd Preferred stock 2,095 2,380,161 881 6,352 2,382,550 2,666

(*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 K-IFRS 1033 ‘Earnings per Share’.
(*3) Profit attributable to shares is adjusted by considering the interest expense and the changes in ownership percentage
resulting from convertible bonds.

34. INCOME TAX EXPENSE:

Income tax expense is computed by adjusting from income tax currently payable to adjustments recognized in the
current period in relation to prior periods, changes in deferred taxes due to temporary differences, income tax
expense in relation to items not recognized as profit or loss and others. The average effective tax rates (income tax
expense divided by income before income tax) for the six-month periods ended June 30, 2020 and 2019 are 29.6%
and 25.0%, respectively.

35. RETIREMENT BENEFIT PLAN:

(1) Expenses recognized in relation to defined contribution plans for the six-month periods ended June 30, 2020 and
2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Paid-in cash ￦ 4,984 ￦ 4,989
Recognized liability 1,756 1,543
￦ 6,740 ￦ 6,532

(2) The significant actuarial assumptions used by the Group as of June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

Discount rate (*) 3.01% 2.95%
Rate of expected future salary increase 4.25% 4.15%

(*) The Group applied the market yields of high-quality corporate bonds (AA+) and others as the discount rate at
June 30, 2020, 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 June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Present value of defined benefit obligations ￦ 6,387,926 ￦ 6,321,408
Fair value of plan assets (5,968,612) (5,913,514)
￦ 419,314 ￦ 407,894
Net defined benefit liabilities 419,314 412,598
Net defined benefit assets - (4,704)

(4) Changes in net defined benefit assets and liabilities for the six-month period ended June 30, 2020 are as follows.

Present value of defined Fair value of Net defined benefit

Description benefit obligations plan assets liabilities
(In millions of Korean Won)
Beginning of the period ￦ 6,321,408 ￦ (5,913,514) ￦ 407,894
Current service cost 307,748 - 307,748
Interest expenses (income) 68,040 (65,695) 2,345
6,697,196 (5,979,209) 717,987
Remeasurements:
Return on plan assets - (4,572) (4,572)
Actuarial gains and losses arising
from changes in demographic
assumptions 1,050 - 1,050
Actuarial gains and losses arising
from changes in financial
assumptions 28,660 - 28,660
Actuarial gains and losses arising
from experience adjustments and
others 2,305 - 2,305
32,015 (4,572) 27,443
Contributions - (279,841) (279,841)
Benefits paid (353,711) 303,958 (49,753)
Transfers in (out) 1,861 (752) 1,109
Effect of foreign exchange
differences and others 10,565 (8,196) 2,369
End of the period ￦ 6,387,926 ￦ (5,968,612) ￦ 419,314
 Changes in net defined benefit assets and liabilities for the six-month period ended June 30, 2019 are as
follows.

Present value of defined Fair value of Net defined benefit

Description benefit obligations plan assets liabilities
(In millions of Korean Won)
Beginning of the period ￦ 5,931,464 ￦ (5,508,329) ￦ 423,135
Current service cost 302,086 - 302,086
Interest expenses (income) 78,285 (75,136) 3,149
6,311,835 (5,583,465) 728,370
Remeasurements:
Return on plan assets - (25,473) (25,473)
Actuarial gains and losses arising
from changes in financial
assumptions 38,215 - 38,215
Actuarial gains and losses arising
from experience adjustments
and others (2,635) - (2,635)
35,580 (25,473) 10,107
Contributions - (313,194) (313,194)
Benefits paid (324,534) 275,274 (49,260)
Transfers in (out) 155 119 274
Effect of foreign exchange
differences and others 17,079 (6,915) 10,164
End of the period ￦ 6,040,115 ￦ (5,653,654) ￦ 386,461

(5) The fair value of the plan assets as of June 30, 2020 and December 31, 2019 is as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Insurance instruments ￦ 5,964,847 ￦ 5,909,102
Others 3,765 4,412
￦ 5,968,612 ￦ 5,913,514
36. CASH GENERATED FROM OPERATIONS:

Cash generated from operations for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Profit for the period ￦ 929,952 ￦ 1,953,081
Adjustments:
Retirement benefit costs 311,849 306,778
Depreciation 1,338,802 1,234,312
Amortization of intangible assets 709,279 636,312
Provision for warranties 1,112,494 1,023,930
Income tax expense 390,582 649,706
Loss (gain) on foreign currency translation, net 184,057 (40,130)
Loss on disposals of PP&E, net 16,113 29,471
Interest income, net (37,399) (99,756)
Loss (gain) on share of earnings of equity-accounted investees,
net 7,727 (353,655)
Cost of sales from financial services, net 3,486,423 3,354,281
Others 155,226 509,391
7,675,153 7,250,640
Changes in operating assets and liabilities:
Decrease (increase) in trade notes and accounts receivable 898,398 (294,440)
Decrease (increase) in other receivables (245,678) 234,105
Increase in other financial assets (106,257) (840,881)
Increase in inventories (393,996) (1,261,349)
Increase in other assets (72,629) (86,379)
Increase (decrease) in trade notes and accounts payable (706,931) 316,962
Decrease in other payables (1,042,049) (735,866)
Increase in other liabilities 274,296 2,130,602
Decrease in other financial liabilities (15,729) (6,796)
Decrease in net defined benefit liabilities (273,131) (306,974)
Payment of severance benefits (49,753) (49,260)
Decrease in provisions (1,547,468) (1,498,481)
Changes in financial services receivables (2,180,127) (2,489,555)
Investment in operating leases (1,545,478) (1,644,268)
Others 100,091 33,767
(6,906,441) (6,498,813)
Cash generated from operations ￦ 1,698,664 ￦ 2,704,908
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 June 30, 2020 and December 31, 2019 are as follows.

Description June 30, 2020 December 31, 2019

(In millions of Korean Won)
Total liabilities ￦ 125,756,385 ￦ 118,146,466
Total equity 76,048,135 76,365,754
Debt-to-equity ratio 165.4% 154.7%

(2) Financial risk management

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 evade 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.

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 to 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 June 30, 2020 is as follows.

Foreign Exchange Rate Sensitivity

Foreign Currency Increase by 5% Decrease by 5%
(In millions of Korean Won)
USD ￦ (45,259) ￦ 45,259
EUR (10,580) 10,580
JPY (5,458) 5,458

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 June 30, 2020 is as
follows.

Interest Rate Sensitivity

Accounts Increase by 1% Decrease by 1%
(In millions of Korean Won)
Cash and cash equivalents ￦ 15,699 ￦ (15,699)
Financial assets measured at FVPL (4,746) 5,076
Short-term and long-term financial
instruments 8,529 (8,529)
Borrowings and debentures (136,023) 136,023

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 June 30,
2020 and December 31, 2019, the amounts of interest rate risk measured at VaR are ￦162,030 million and
￦159,980 million, respectively.

c) Price risk

The Group is exposed to market price fluctuation risk arising from equity instruments. As of June 30, 2020, the
amounts of financial assets measured at FVPL and financial assets measured at FVOCI are ￦93,666 million
and ￦1,584,461 million, respectively.

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.

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
expiration as of June 30, 2020 is as follows.

Remaining contract period

Not later than Later than one year and Later than
Description one year not later than five years five years Total
(In millions of Korean Won)
Non-interest-
bearing liabilities ￦ 14,010,423 ￦ 11,719 ￦ - ￦ 14,022,142
Interest-bearing
liabilities 31,618,136 56,067,304 7,708,076 95,393,516
Financial
guarantee 895,803 15,140 151 911,094
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.

As of June 30, 2020 and December 31, 2019, the Group recognized an accumulative net loss of ￦90,780 million
and ￦28,383 million, respectively, in accumulated other comprehensive loss, for effective cash flow hedging
instruments.

The longest period in which the forecasted transactions are expected to occur is within 111 months as of June 30,
2020.

For the six-month periods ended June 30, 2020 and 2019, the Group recognized a net profit of ￦210,694 million
and ￦191,415 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.

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 six-month period ended June 30, 2020, significant transactions arising from operations between the
Group and related parties or affiliates by the Monopoly Regulation and Fair Trade Act of the Republic of
Korea (“the Act”) are as follows.

Sales/proceeds Purchases/expenses
Description Sales Others Purchases Others
(In millions of Korean Won)
Entity with Hyundai MOBIS Co., Ltd. ￦ 527,800 ￦ 92,841 ￦ 3,472,601 ￦ 27,724
significant Mobis Alabama, LLC 101,459 2,475 454,189 -
influence over Mobis Automotive Czech s.r.o. 5 269 669,148 12,637
the Company Mobis India, Ltd. 3,604 1,108 291,105 6,643
and its Mobis Parts America, LLC 30,794 1,801 460,478 368
subsidiaries Mobis Module CIS, LLC. - 171 139,955 10
Mobis Parts Europe N.V. 6,309 256 166,458 1
Others 13,336 1,219 367,954 936
Joint ventures Kia Motors Corporation 448,755 228,326 41,160 351,119
and associates Kia Motors Russia LLC. 396,015 - - -
Kia Motors Slovakia s.r.o. 52,549 2,799 164,549 -
Kia Motors Mexico S.A de C.V. 3,523 567 154,172 -
BHMC 90,719 45 45,863 -
HMGC 1,584 - 35,892 1,919
Hyundai WIA Corporation 44,543 1,134 562,776 5,001
Others 469,848 28,647 1,577,454 788,978
Other related parties 3,355 1,802 51 2
Affiliates by the Act 396,815 165,609 2,935,703 313,506
 For the six-month period ended June 30, 2019, significant transactions arising from operations between the
Group and related parties or affiliates by the Act are as follows.

Sales/proceeds Purchases/expenses
Description Sales Others Purchases Others
(In millions of Korean Won)
Entity with Hyundai MOBIS Co., Ltd. ￦ 460,569 ￦ 4,966 ￦ 3,412,033 ￦ 16,838
significant Mobis Alabama, LLC 89,263 1,214 686,272 7,017
influence over Mobis Automotive Czech s.r.o. - 251 767,270 -
the Company Mobis India, Ltd. 5,991 4,594 573,441 5,998
and its Mobis Parts America, LLC 27,722 1,659 447,911 352
subsidiaries Mobis Parts Europe N.V. 8,610 313 196,677 -
Mobis Brasil Fabricacao De
Auto Pecas Ltda 4,648 - 138,236 -
Mobis Module CIS, LLC - 167 208,313 -
Others 10,897 3,026 331,202 10,648
Joint ventures Kia Motors Corporation 564,377 217,172 90,652 327,567
and associates Kia Motors Manufacturing
Georgia, Inc. 187,960 556 11 20,121
Kia Motors Russia LLC 521,613 - - -
Kia Motors Slovakia s.r.o. 56,414 13 229,470 -
BHMC 223,675 17,847 52,112 -
HMGC 1,455 - 28,298 2,973
Hyundai WIA Corporation 67,991 290 634,220 45,334
Others 246,372 25,150 2,017,704 886,017
Other related parties 2,715 3,068 48 2
Affiliates by the Act 498,641 87,783 3,473,043 638,990

(2) As of June 30, 2020, significant balances related to the transactionsbetween the Group and related parties or
affiliates by the Act are as follows.

Receivables (*1,2) Payables

Trade notes Other Trade notes Other
and accounts receivables and accounts payables
Description receivable and others payable and others
(In millions of Korean Won)
Entity with Hyundai MOBIS Co., Ltd. ￦ 252,340 ￦ 7,989 ￦ 1,507,287 ￦ 251,610
significant Mobis Alabama, LLC 24,904 - 34,815 -
influence over Mobis Automotive Czech s.r.o. - 237 193,325 -
the Company Mobis India, Ltd. 333 - 53,592 2
and its Mobis Parts America, LLC 16,541 47 83,459 -
subsidiaries Mobis Module CIS, LLC - 37 34,340 -
Mobis Parts Europe N.V. 717 303 33,168 -
Others 3,289 1,323 71,013 2,885
Joint ventures Kia Motors Corporation 444,481 145,424 25,845 148,069
and associates Kia Motors Russia LLC. 126,459 146 - 214
Kia Motors Slovakia s.r.o. 7,224 163 23,578 94
Kia Motors Mexico S.A de C.V. 627 1,081 6,340 435
Kia Motors America, Inc. - 153,342 87 21,361
BHMC 131,025 78,072 912 2,305
HMGC 414 20,603 6,232 1,059
Hyundai WIA Corporation 13,413 13,296 197,640 30,520
Others 185,572 135,224 561,304 914,909
Other related parties 57 410 10 -
Affiliates by the Act 107,089 50,328 624,686 219,492

(*1) The Group has recognized the loss allowance for the related parties' receivables in the amount of ￦286 million as of June 30,
2020 and the reversal of impairment loss is recognized in the amount of ￦154 million for the six-month period ended June
30, 2020.
(*2) As of June 30, 2020, outstanding payment of ￦16,975 million of corporate purchase card agreement provided by Hyundai
Card Co., Ltd. is included. For the six-month period ended June 30, 2020, amount used and repayment of agreement are
￦134,828 million and ￦139,080 million, respectively.

As of December 31, 2019, significant balances related to the transactions between the Group and related parties
or affiliates by the Act are as follows.

Receivables (*1,2) Payables

Trade notes Other Trade notes Other
and accounts receivables and accounts payables
Description receivable and others payable and others
(In millions of Korean Won)
Entity with Hyundai MOBIS Co., Ltd. ￦ 180,627 ￦ 8,774 ￦ 1,240,307 ￦ 260,458
significant Mobis Alabama, LLC 6,835 - 112,964 12
influence over Mobis Automotive Czech s.r.o. - 369 110,024 -
the Company Mobis India, Ltd. 3,381 - 118,413 2
and its Mobis Parts America, LLC 14,033 89 85,048 -
subsidiaries Mobis Module CIS, LLC - 36 32,457 -
Mobis Parts Europe N.V. 1,671 3,033 32,294 -
Others 5,709 719 78,094 4,187
Joint ventures Kia Motors Corporation 467,458 325,290 46,735 175,515
and associates Kia Motors Russia LLC. 145,459 326 - -
Kia Motors Slovakia s.r.o. 8,312 1,028 30,354 89
Kia Motors Mexico S.A de C.V. 33 4,645 77,306 366
Kia Motors America, Inc. - 84,127 1,275 20,455
BHMC 156,728 76,174 6,215 820
HMGC 16 19,894 6,957 37,188
Hyundai WIA Corporation 28,289 14,729 151,717 55,728
Others 302,208 115,063 492,506 695,803
Other related parties 87 520 10 1
Affiliates by the Act 214,074 78,281 845,699 344,282

(*1) The Group has recognized the loss allowance for the related parties' receivables in the amount of ￦26,889 million as of
December 31, 2019 and the impairment loss is recognized in the amount of ￦1,895 million for the year ended December 31,
2019.
(*2) As of December 31, 2019, outstanding payment of ￦21,227 million of corporate purchase card agreement provided by Hyundai
Card Co., Ltd. is included. For the year ended December 31, 2019, amount used and repayment of agreement are ￦307,706
million and ￦304,492 million, respectively.

(3) Significant fund transactions and equity contribution transactions for the six-month period ended June 30,
2020, between the Group and related parties are as follows.

Loans Borrowings Equity

Description Lending Collection Borrowing Repayment contribution
(In millions of
(In thousands of US Dollar) Korean won)
Joint ventures and associates - - USD 5,000 - ￦ 1,414,250

Significant fund transactions and equity contribution transactions for the six-month period ended June 30,
2019, between the Group and related parties are as follows.

Loans Borrowings Equity

Description Lending Collection Borrowing Repayment contribution
(In millions of
Korean won)
Joint ventures and associates - - - - ￦ 104,932
 For the six-month period ended June 30, 2020, the Group traded in other financial assets and others of
￦1,590,000 million with HYUNDAI MOTOR SECURITIES Co., Ltd., an associate of the Group. The Group
has other financial assets of ￦780,000 million in the consolidated statement of financial position as of June
30, 2020.

(4) Compensation of registered and unregistered directors, who are considered to be the key management
personnel for the six-month periods ended June 30, 2020 and 2019 are as follows.

Six-month period ended June 30,

Description 2020 2019
(In millions of Korean Won)
Short-term employee salaries ￦ 129,873 ￦ 112,118
Retirement benefit costs 23,015 22,541
Other long-term benefits 362 392
￦ 153,250 ￦ 135,051

(5) As of June 30, 2020, the Group offers payment guarantee to related parties and affiliates by the Act.

39. COMMITMENTS AND CONTINGENCIES:

(1) As of June 30, 2020, the debt guarantees provided by the Group, excluding the ones provided to the
Company’s subsidiaries are as follows.

Description Domestic Overseas (*)

(In millions of Korean Won)
To associates ￦ 128,050 ￦ -
To others 9,957 903,887
￦ 138,007 ￦ 903,887

(*) The guarantee amounts in foreign currencies are translated into Korean Won using the Base Rate announced by Seoul
Money Brokerage Services, Ltd. as of June 30, 2020.

(2) As of June 30, 2020, 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 June 30, 2020, the Group
is under investigation by related authorities in relation to the theta 2 engine recall, and its results and impacts
are unpredictable. Meanwhile, as of June 30, 2020, the Group is currently involved in lawsuits for ordinary
wage, which relates to disputes over whether certain elements of remuneration shall be included in the
earnings used for the purposes of calculating overtime, allowances for unused annual paid leave and retirement
benefits, and unable to estimate the outcome or the potential consolidated financial impact.

(3) As of June 30, 2020, a substantial portion of the Group’s PP&E is pledged as collateral for various loans and
leasehold deposits up to ￦506,415 million. In addition, the Group pledged certain bank deposits, checks and
promissory notes, including 213,466 shares of Kia Motors 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 June 30, 2020, the Group has overdrafts, general loans, and trade-financing agreements with numerous
financial institutions including Kookmin Bank.

(5) As of June 30, 2020, Hyundai Capital Services, Inc. and Hyundai Card Co., Ltd. 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 contracts.

(6) As of June 30, 2020, Hyundai Capital Services, Inc. and Hyundai Card Co., Ltd., the subsidiaries of the
Company are able to exercise the priority purchasing rights for the leased office building when the lessor
wants to sell the building or after 4 years and 5 months from the lease contract commencement date.
(7) As of June 30, 2020, the Company entered into a total return swap contract for stocks of Hyundai Capital
Services, Inc., the subsidiary of the Company, held by other investors of a third parties.

(8) As of June 30, 2020, the Company has a shareholder agreement with investors of third parties 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.

(9) 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 June 30, 2020, the Company has recognized relevant liability in
the amount of ￦945,364 million in accordance with the agreement with the Seoul government to implement
public contributions relating to the new construction project.

40. SEGMENT INFORMATION:

(1) The Group has 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 segments for the six-month periods ended June 30, 2020 and 2019 are
as follows.

For the six-month period ended June 30, 2020

Consolidation
Vehicle Finance Others adjustments Total
(In millions of Korean Won)
Total sales ￦ 53,755,398 ￦ 8,697,473 ￦ 3,690,666 ￦ (18,965,098) ￦ 47,178,439
Inter-company sales (18,144,157) (179,898) (641,043) 18,965,098 -
Net sales 35,611,241 8,517,575 3,049,623 - 47,178,439

Operating profit 864,497 490,242 112,703 (13,345) 1,454,097

For the six-month period ended June 30, 2019

Consolidation
Vehicle Finance Others adjustments Total
(In millions of Korean Won)
Total sales ￦ 61,329,469 ￦ 8,391,545 ￦ 4,059,639 ￦ (22,827,221) ￦ 50,953,432
Inter-company sales (21,696,191) (388,658) (742,372) 22,827,221 -
Net sales 39,633,278 8,002,887 3,317,267 - 50,953,432

Operating profit 1,546,001 516,680 119,669 (119,754) 2,062,596

(3) Assets and liabilities by operating segments as of June 30, 2020 are as follows.

June 30, 2020

Consolidation
Vehicle Finance Others adjustments Total
(In millions of Korean Won)
Total assets ￦ 108,640,777 ￦ 100,646,984 ￦ 8,491,143 ￦ (15,974,384) ￦ 201,804,520
Total liabilities 43,533,685 87,036,250 5,459,581 (10,273,131) 125,756,385
Borrowings and debentures 11,188,119 79,374,199 2,737,174 (3,757,989) 89,541,503
 Assets and liabilities by operating segments as of December 31, 2019 are as follows.

December 31, 2019

Consolidation
Vehicle Finance Others adjustments Total
(In millions of Korean Won)
Total assets ￦ 107,555,519 ￦ 93,803,198 ￦ 8,541,669 ￦ (15,388,166) ￦ 194,512,220
Total liabilities 42,249,145 80,509,835 5,579,715 (10,192,229) 118,146,466
Borrowings and debentures 7,628,244 72,788,608 2,776,867 (1,821,566) 81,372,153

(4) Sales by region based on where the Group’s entities are located in for the six-month periods ended June 30,
2020 and 2019 are as follows.

For the six-month period ended June 30, 2020

North Consolidation
Korea America AsiaEurope Others adjustments Total
(In millions of Korean Won)
Total sales ￦ 28,826,059 ￦ 19,529,494 ￦ 3,407,691 ￦ 13,664,791 ￦ 715,502 ￦ (18,965,098) ￦ 47,178,439
Inter-company
sales (9,364,207) (2,619,139) (167,863) (6,811,785) (2,104) 18,965,098 -
Net sales 19,461,852 16,910,355 3,239,828 6,853,006 713,398 - 47,178,439

For the six-month period ended June 30, 2019

North Consolidation
Korea America Asia Europe Others adjustments Total
(In millions of Korean Won)
Total sales ￦ 29,837,877 ￦ 20,132,948 ￦ 5,125,960 ￦ 17,290,150 ￦ 1,393,718 ￦ (22,827,221) ￦ 50,953,432
Inter-company
sales (10,596,521) (3,773,410) (152,128) (8,305,049) (113) 22,827,221 -
Net sales 19,241,356 16,359,538 4,973,832 8,985,101 1,393,605 - 50,953,432

(5) Non-current assets by region where the Group’s entities are located in as of June 30, 2020 and December 31,
2019 are as follows.

June 30, December 31,

Description 2020 2019
(In millions of Korean Won)
Korea ￦ 32,222,380 ￦ 32,022,342
North America 2,842,895 2,588,893
Asia 2,117,870 1,527,181
Europe 2,069,350 1,962,133
Others 347,097 449,771
39,599,592 38,550,320
Consolidation adjustments (301,439) (280,806)
Total (*) ￦ 39,298,153 ￦ 38,269,514

(*) Total amount is the same as summation of PP&E, intangible assets and investment properties.

(6) There is no single external customer who represents 10% or more of the Group’s revenue for the six-month
periods ended June 30, 2020 and 2019.
41. CONSTRUCTION CONTRACTS:

(1) Cost, income and loss and claimed construction from construction in progress as of June 30, 2020 and
December 31, 2019 are as follows.

June 30, December 31,

Description 2020 2019
(In millions of Korean Won)
Accumulated cost ￦ 10,270,948 ￦ 10,298,750
Accumulated income 203,487 271,874
Accumulated construction in process 10,474,435 10,570,624
Progress billing 10,303,208 10,175,567
Due from customers 1,150,538 1,171,029
Due to customers 979,311 775,972
Reserve (*) 98,235 95,404

(*) Reserve is recognized as long-term trade notes and accounts receivable in the consolidated financial statements.

(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 June 30, 2020 are as follows.

Description June 30, 2020

(In millions of Korean Won)
Changes in accounting estimates of total contract revenue ￦ 168,379
Changes in accounting estimates of total contract costs (48,188)
Effects on profit or loss of current period 45,618
Effects on profit or loss of future periods 170,949
Changes in due from customers 71,875
Provision for construction loss 91,693

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 June 30, 2020. Total contract revenue and costs may change in future periods.

(3) There is no contract as of June 30, 2020, in which contract revenue is recognized by the proportion of contract
costs incurred, that accounted for more than 5% of the Group's revenue in the prior period.
42. BUSINESS COMBINATIONS:

The Group acquired additional 50% of the shares of the Sichuan Hyundai Motor Company (CHMC) on January
19, 2020.

The accounting for the business combination at the acquisition date is as follows.

Description Amount
(In millions of Korean Won)
Total considerations transferred ￦ 92,328
Assets and liabilities acquired:
Current assets 249,089
Non-current assets
Property, plant and equipment 436,954
Intangible assets 178,515
Other assets 134,329
749,798

Current liabilities 799,488

Non-current liabilities 183,876
Fair value of identifiable net assets 15,523
Goodwill ￦ 76,805

The amounts of sales and net loss of the acquiree since the acquisition date included in the consolidated statement
of comprehensive income for the six-month period ended June 30, 2020 are ￦92,364 million and ￦71,481 million,
respectively.

43. SUBSEQUENT EVENTS:

The conversion rights of convertible bonds (Face value: ￦240,000 million) issued on June 17, 2020 by Hyundai
Rotem Company, a subsidiary, was exercised in the amount of ￦185,675 million from the start date of conversion
rights to July 31, 2020. Meanwhile, Hyundai Rotem Company decided to exercise the call option on August 22,
2020 for outstanding convertible bonds as of August 7, 2020.