53751874

HYUNDAI MOBIS CO., LTD.
Separate Financial Statements

December 31, 2012 and 2011
(With Independent Auditors Report Thereon)
Contents
Page
Independent Auditors Report
Separate Statements of Financial Position
Separate Statements of Income
Separate Statements of Comprehensive Income
Separate Statements of Changes in Equity
Separate Statements of Cash Flows
Notes to the Separate Financial Statements
Independent Auditors Review Report on Internal Accounting Control System
65
Report on the Operations of Internal Accounting Control System
66
Independent Auditors Report

Based on a report originally issued in Korean
The Board of Directors and Stockholders

HYUNDAI MOBIS Co., Ltd.:
We have audited the accompanying separate statements of financial position of HYUNDAI MOBIS Co., Ltd. (the
Company) as of December 31, 2012 and 2011 and the related separate statements of income and comprehensive
income, changes in equity and cash flows for the years then ended. Management is responsible for the preparation and
fair presentation of these separate financial statements in accordance with Korean International Financial Reporting
Standards. Our responsibility is to express an opinion on these separate financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the separate financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the separate financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion, the separate financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of December 31, 2012 and 2011 and its financial performance and its cash flows for the years
then ended in accordance with Korean International Financial Reporting Standards.
Without qualifying our opinion, we draw attention to the following:
The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from
those generally accepted and applied in other countries. Accordingly, this report and the accompanying separate
financial statements are for use by those knowledgeable about Korean auditing standards and their application in practice.
KPMG Samjong Accounting Corp.

Seoul, Korea
February 22, 2013
This report is effective as of February 22, 2013, the audit report date. Certain subsequent events or circumstances,
which may occur between the audit report date and the time of reading this report, could have a material impact on the
accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should
understand that the above audit report has not been updated to reflect the impact of such subsequent events or
circumstances, if any.

Separate Statements of Financial Position
As of December 31, 2012 and 2011
(In millions of won)
Assets
Cash and cash equivalents
Short-term financial instruments
Trade and other receivables
Inventories, net
Other current assets
Total current assets
Property, plant and equipment, net
Intangible assets, net
Investment property, net
Investment in associates, joint venture and
subsidiaries
Available-for-sale financial assets
Other non-current assets
Total non-current assets
Note
4,36
5,36
6,33,36
7
8,36
2012
2011
662,949
2,964,000
3,874,047
797,289
130,611
8,428,896
1,186,260
1,210,000
3,921,600
788,026
62,911
7,168,797
9
10
11
1,997,911
729,075
66,616
1,837,597
716,832
71,230
12
13,36
5,6,14,36
6,865,658
95,371
56,617
9,811,248
6,572,259
86,757
72,982
9,357,657
18,240,144
16,526,454
Total assets
See accompanying notes to the separate financial statements.

Separate Statements of Financial Position, Continued
As of December 31, 2012 and 2011

Liabilities
Trade and other payables
Current portion of long-term debt and short-term
borrowings
Income taxes payable
Provisions for warranties
Other current liabilities
Total current liabilities
Bonds and long-term borrowings
Employee benefits
Provision for warranties
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Equity
Capital stock
Capital surplus
Treasury stock
Other equity
Retained earnings
Total equity
Note
15,33,36
2012
2011
2,334,381
2,230,990
18,36
31
17
16,20,36
1,158,773
323,960
58,235
203,360
4,078,709
1,711,134
258,652
49,350
178,229
4,428,355
18,36
19
17
31
16,20,36
81,653
53,565
613,131
459
748,808
4,827,517
99,762
55,420
48,128
590,252
25,993
819,555
5,247,910
491,096
1,385,743
(121,688)
(6,773)
11,664,249
13,412,627
491,096
1,385,743
(121,688)
(87,320)
9,610,713
11,278,544
18,240,144
16,526,454
21
21
22
23
24,25
Total liabilities and equity

Separate Statements of Income
For the years ended December 31, 2012 and 2011
(In millions of won, except earnings per share information)
Note
Revenue
Cost of sales
Gross profit
26,33
27,33
2012
2011
16,865,694
(13,420,601)
3,445,093
15,886,201
(12,720,774)
3,165,427
(1,132,727)
2,312,366
(1,026,585)
2,138,842
Selling, general and administrative expenses

Operating profit
27,28,33
2
Other income
Other expenses
Finance income
Finance expenses
Gain on disposal of investments in associates
Profit before income taxes
29,30
29,30
30
30
12
136,203
(187,564)
609,005
(92,091)
58,942
2,836,861
187,791
(171,915)
327,979
(191,657)
2,291,040
31
(585,609)
(548,298)
2,251,252
1,742,742
23,558
18,258
Income tax expense

Profit for the year
Earnings per share
Basic earnings per share in won
32

Separate Statements of Comprehensive Income
Note
2012
W
2,251,252
1,742,742
13,23,31
6,443
(35,804)
20,23,31
19,24,31
74,104
(30,480)
50,067
(30,899)
(10,396)
(77,099)
2,301,319
1,665,643
Profit for the year

Other comprehensive income (loss):
Change in fair value of available-for-sale financial assets,
net of tax
Effective portion of changes in fair value of cash flow
hedges, net of tax
Defined benefit plan actuarial losses, net of tax
Total comprehensive income for the year
2011

Separate Statements of Change in Equity
Capital
stock
Balance at January 1, 2011
Comprehensive income (net of tax):

Profit for the year
Change in fair value of available-for-sale
financial assets
Effective portion of changes in fair value
of cash flow hedges
Defined benefit plan actuarial losses
Total comprehensive income for the
year
Capital surplus Treasury stock
Other
equity
Retained
earnings
Total
equity
491,096
1,359,252
(130,896)
(20,618)
8,021,507
9,720,341
1,742,742
1,742,742
(35,804)
(35,804)
(30,899)
-
(10,396)
(30,899)
(10,396)
(66,703)
1,732,346
1,665,643
1
-
(143,140)
35,700
(143,140)
(143,140)
(107,440)
Transactions with owners of the Company, recognized directly in equity:

Disposal of treasury stock
26,491
9,208
Dividends
Total transactions with owners of the
26,491
9,208
Company
Balance at December 31, 2011
491,096
1,385,743
(121,688)
(87,320)
9,610,713
11,278,544
Balance at January 1, 2012
491,096
1,385,743
(121,688)
(87,320)
9,610,713
11,278,544
2,251,252
2,251,252
6,443
6,443
74,104
-
(30,480)
74,104
(30,480)
80,547
2,220,772
2,301,319
(167,236)
(167,236)
(167,236)
(167,236)
(121,688)
(6,773)
11,664,249
13,412,627
Comprehensive income (net of tax):

Profit for the year
Change in fair value of available-for-sale
financial assets
Effective portion of changes in fair value
of cash flow hedges
Defined benefit plan actuarial losses
Total comprehensive income for the
year
Transactions with owners of the Company, recognized directly in equity:

Dividends
Total transactions with owners of the
Company
Balance at December 31, 2012
491,096
1,385,743

Separate Statements of Cash Flows
2012
Note
Cash flows from operating activities

Cash generated from operations
Interest received
Interest paid
Dividends received
Income tax paid
Net cash provided by operating activities
35
Cash flows from investing activities

Increase in short-term financial instruments, net
Increase in long-term financial instruments, net
Disposal of available-for-sale financial assets
Acquisition of available-for-sale financial assets
Disposal of investments in associates and subsidiaries
Acquisition of investments in associates and subsidiaries
Disposal of property, plant and equipment
Acquisition of property, plant and equipment
Acquisition of intangible assets
Disposal of investment property
Acquisition of investment property
Decrease (increase) in deposits provided, net
Decrease (increase) in guarantee deposits, net
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net
Repayment of current portion of long-term debt
Dividends paid
Net cash provided by (used in) financing activities
Effect of currency exchange rate fluctuation on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of year
W
Cash and cash equivalents at the end of year
2011
2,668,346
115,689
(26,526)
338,546
(502,405)
2,593,650
1,751,520
71,153
(40,828)
116,819
(442,180)
1,456,484
(1,725,000)
28
(157)
120,375
(354,832)
4,574
(345,212)
(23,433)
2,551
5,211
995
(2,314,900)
(960,000)
(25,000)
940
(1,326)
(1,262,068)
8,392
(310,054)
(21,290)
(1,341)
(5,480)
(2,627)
(2,579,854)
(434,823)
(200,000)
(167,236)
(802,059)
400,949
(143,140)
257,809
(2)
(523,311)
1,186,260
(865,560)
2,051,820
662,949
1,186,260

1. General Description of the Company

HYUNDAI MOBIS Co., Ltd. (the Company) engages in the auto parts business, mainly manufacturing parts and
modules, for car production, after-sales services, and others. The shares of the Company have been listed on the
Korea Stock Exchange since 1989.
The main office is located in Seoul, and its module factories are located in Ul-San, Kyoung-In and Chung-Cheong,
Republic of Korea. The Company also has a lab located in Yong-In, Republic of Korea.
The Companys common stockholders as of December 31, 2012 and 2011 are as follows:
Stockholders
KIA Motors Corporation
Mong-Ku Chung
Hyundai Steel Company
Hyundai Glovis Co., Ltd.
Treasury stock
Others
2012
Number of
Percentage of
shares
ownership
16,427,074
16.88%
6,778,966
6.96%
5,504,846
5.66%
656,293
0.67%
1,806,616
1.86%
66,170,068
67.97%
97,343,863
100.00%
2011
Number of
Percentage of
shares
ownership
16,427,074
16.88%
6,778,966
6.96%
5,504,846
5.66%
656,293
0.67%
1,806,615
1.86%
66,170,069
67.97%
97,343,863
100.00%
2. Basis of Preparation
(1) Statement of compliance
The separate financial statements have been prepared in accordance with Korean International Financial Reporting
Standards (K-IFRS) as prescribed in the Act on External Audit of Corporations in the Republic of Korea.
These financial statements are separate financial statements prepared in accordance with K-IFRS No.1027,
Consolidated and Separate Financial Statements presented by a parent, an investor in an associate or a venture in a
jointly controlled entity, in which the investments are accounted for on the basis of the direct equity interest rather
than on the basis of the reported results and net assets of the investees.
(2) Basis of measurement
The separate financial statements have been prepared on the historical cost basis, except for descriptions mentioned
in notes separately.
(3) Functional and presentation currency
These separate financial statements are presented in Korean won, which is the Companys functional currency and
the currency of the primary economic environment in which the Company operates.
(4) Use of estimates and judgments
The preparation of the separate financial statements in conformity with K-IFRS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates. Information about critical
assumptions and estimates is included in note 3(20).

2. Basis of Preparation, Continued

(5) Changes in accounting policies
Changes in accounting policies
- Financial Instruments: Disclosures
The Company has applied the amendments to K-IFRS No.1107, Financial Instruments: Disclosures since January 1,
2012. The amendments require disclosing the nature of transferred assets, their carrying amount, and the description of
risks and rewards for each class of transferred financial assets that are not derecognized in their entirety. If the
Company derecognizes transferred financial assets but still retains their specific risks and rewards, the amendments
require additional disclosures of their risks.
- Deferred tax associated with investment property
The Company has adopted Deferred Tax: Recovery of Underlying Assets (Amendments to K-IFRS No.1012, Income
Tax) since January 1, 2012 and changed its accounting policy for measuring deferred tax for investment property
accounted for under the fair value model. Deferred tax assets or liabilities related to investment property measured at
fair value model, unless any contrary evidence exists, are measured using the assumption that the carrying amount of the
property will be recovered entirely through sale.
- Presentation of financial statements
The Company adopted the amendments to K-IFRS No. 1001, Presentation of Financial Statements from the annual
period ended December 31, 2012. The Companys operating profit is calculated as revenue less: (1) cost of goods sold,
and (2) selling, general and administrative expenses, and is presented separately in the statement of income.
Impact of change in accounting policy
The Company retrospectively applied the amendment to K-IFRS No. 1001, for which the impact is as follows:
2012
Operating profit before adoption of the amendment

Changes :
Other income (note 29)
Other expenses (note 29)
Operating profit after adoption of the amendment
2011
2,261,005
2,154,718
(136,203)
187,564
(187,791)
171,915
2,312,366
2,138,842

3. Significant Accounting Policies

The significant accounting policies applied by the Company in preparation of its separate financial statements are
included below. The accounting policies set out below have been applied consistently to all periods presented in these
separate financial statements except those as disclosed in note 2 (5).
Certain amounts in prior year were reclassified to conform to current year presentation.
impact on net assets or net income.
Such reclassification has no
(1) Investments in subsidiaries and associates

The separate financial statements are prepared and presented in accordance with K-IFRS No. 1027 Consolidated and
Separate Financial Statements. The Company applied cost method to investments in subsidiaries, associates and joint
venture in accordance with K-IFRS No. 1027.
(2) Operating segment
The Company discloses information related to operating segment in accordance with K-IFRS No. 1108 Operating
Segment in its consolidated financial statements.
(3) Foreign currencies
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date
of the transactions or that of valuation where items are re-measured. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the separate statement of income.
Foreign exchange gains and losses related to borrowings and cash and cash equivalents are presented in the separate
statement of income within financial income or expenses. All other foreign exchange gains and losses are presented in
the separate statement of income within other operating income or expenses.
(4) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and are
used by the Company in management of its short-term commitments.
10

3. Significant Accounting Policies, Continued

(5) Non-derivative financial instruments
Classification
The Company classifies its financial instruments in the following categories: financial assets and liabilities at fair value
through profit or loss, loans and receivables, available-for-sale financial assets, held-to-maturity investments, and other
financial liabilities at amortized cost. The classification depends on the purpose for which the financial instruments
were acquired and the nature of the instruments. Management determines the classification of its financial instruments
at initial recognition.
- Financial assets and liabilities at fair value through profit or loss
Financial assets and liabilities at fair value through profit or loss are financial instruments held for trading. Financial
assets and liabilities are classified in this category if acquired principally for the purpose of selling or repurchasing it in
the near term.
- Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in non-current assets, except for those with maturities less than 12 months after the
end of the reporting period, which are classified as current assets.
- Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are included in non-current assets unless the investment matures or management
intends to dispose of it within 12 months of the end of the reporting period.
- Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed
maturities that the Companys management has the positive intention and ability to hold to maturity.
Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12
months from the end of the reporting period, which are classified as current assets.
- Financial liabilities measured at amortized cost
The Company classifies non-derivative financial liabilities as financial liabilities measured at amortized cost except for
financial liabilities at fair value through profit or loss. Financial liabilities measured at amortized cost are included in
non-current liabilities, except for maturities less than 12 months after the end of the reporting period, which are
classified as current liabilities.
Recognition and measurement
Regular purchases and sales of financial assets are recognized on the trade date. Investments are initially recognized at
fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.
Financial assets carried at fair value through profit or loss is initially recognized at fair value, and transaction costs are
expensed in the statement of income. Financial assets are derecognized when the rights to receive cash flows from the
investments have been expired or have been transferred and the Company has transferred substantially all risks and
rewards of ownership. Unless the transferred financial assets meet criteria for recognition, the Company continues to
recognize the transferred financial assets and recognizes financial liabilities for consideration received.
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair
value. Loans and receivables are subsequently carried at amortized cost using the effective interest method. Gains or
losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are
presented in the separate statement of income within financial income/costs in the period in which they arise.
11


(5) Non-derivative financial instruments, continued
Recognition and measurement, continued
Changes in the fair value of monetary and non-monetary securities classified as available-for-sale financial assets are
recognized in equity. When securities classified as available-for-sale financial assets are sold or impaired, the
accumulated fair value adjustments recognized in equity are presented in the separate statement of income within
finance income/costs.
Interest on held-to-maturity financial assets is recognized in the separate statement of income as part of finance income.
Dividends on available-for-sale equity instruments are presented in the separate statement of income as part of finance
income when the Companys right to receive payments is established.
Impairment of financial assets
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or a
group of financial assets is impaired. A financial asset is impaired if objective evidence indicates that a loss event has
occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future
cash flows of that asset that can be estimated reliably. These events include the case where the issuer of financial
assets goes bankrupt or has solvency problem, not able to pay for interest and principal, the terms and conditions of
borrowings is eased due to financial difficulty of the borrower, active market ceases to exist, and others.
As for particular financial assets such as account receivables, assets which are not considered to be individually
impaired, the Company subsequently go through collective assessment of impairment. For the financial assets
measured at acquisition cost, the amount of the impairment loss is measured as the difference between the carrying
amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate
of return for a similar financial asset. An impairment loss in respect of a financial assets measured at amortized cost is
calculated as the difference between its carrying amount and the present value of its estimated future cash flows
discounted at the assets original effective interest rate. The Company can recognize impairment losses directly or
establish a provision to cover impairment losses. If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as
an improvement in the debtor's credit rating), the previously recognized impairment loss shall be reversed either directly
or by adjusting an allowance account.
In case of equity investments classified as available-for-sale financial assets, a significant or prolonged decline in the
fair value of the security below its cost is also evidence that the assets are impaired. If such evidence exists for
available-for-sale financial assets, the cumulative loss, measured as the difference between the acquisition cost and the
current fair value, less any impairment loss on that financial asset previously recognized in profit or loss, is removed
from equity and recognized in the separate statement of income. Impairment losses recognized in the statement of
income on equity instruments are not reversed through the separate statement of income. If, in a subsequent period, the
fair value of a debt instrument classified as available-for-sale financial assets increases and the increase can be
objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss
is reversed through the separate statement of income.
12


(6) Derivative financial instruments
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently
re-measured at their fair value. Recognition of related gain and loss depends on whether derivative instruments are
designated to hedge, and if designated to hedge, it depends on characteristics of hedged items. On initial designation of
the hedge, the Company formally documents the relationship between the hedging instrument(s) and hedged item(s),
including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods
that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at
the inception of the hedge relationship as well as on a quarterly basis, whether the hedging instruments are expected to
be highly effective in offsetting the changes in the cash flows of the respective hedged items during the period for
which the hedge is designated.
When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a
recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective
portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and
presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is
recognized immediately in profit or loss. If the forecasted transaction is no longer expected to occur, then the balance
in other comprehensive income is recognized immediately in profit or loss.
(7) Inventories
The cost of inventories is determined by the monthly weighted-average method for merchandise, finished goods,
work-in-progress, raw material and supplies, and by the moving-average method for auto parts for after-sales service,
and by the specific identification method for materials in transit. Inventories are measured at the lower of cost and net
realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less applicable
variable selling expenses. The Company periodically reviews signs of impairment of inventories, and if impairment is
identified due to excess, obsolescence, and inutility, the losses on valuation of inventories are recognized reduction to
inventories in separate statement of financial position, and are charged to cost of sales. The amount of any reversal of
any write-down of inventories, arising from an increase in net realizable value, are recognized as a reduction in the
amount of inventories recognized as an expense in the period in which the reversal occurs.
(8) Property, plant and equipment
Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less
accumulated depreciation and accumulated impairment losses. The cost of property, plant and equipment includes
expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing
the asset to the location and condition necessary for it to be capable of operating in the manner intended by management
and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent to initial recognition, property, plant and equipment, except for land, are carried at its cost less any
accumulated depreciation and any accumulated impairment losses. Subsequent costs are included in the assets
carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of the replaced part is derecognized. All other repairs and maintenance are charged to the separate statement of
income during the financial period in which they are incurred.
13


(8) Property, plant and equipment, continued
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method over their estimated
useful lives, as follows:
Useful lives (years)
30
5 ~ 15
5
5
5 ~ 15
Buildings and structures

Machinery and equipment
Tools
Furniture and fixtures
Vehicles
Useful lives, depreciation method and residual values are reviewed at the end of each reporting period and adjusted, if
appropriate. The change is accounted for as a change in an accounting estimate. An assets carrying amount is
written down immediately to its recoverable amount if the assets estimated recoverable amount is smaller than its
carrying amount. Gains or losses on disposals are determined by comparing the proceeds with the carrying amount and
are recognized within other income or expenses in the separate statement of income.
(9) Borrowing costs
The Company capitalizes borrowing costs directly attributable to the acquisition, construction or production of a
qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A
qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. Financial
assets and inventories that are manufactured or otherwise produced over a short period of time are not qualifying assets.
Assets that are ready for their intended use or sale when acquired are not qualifying assets.
To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company
determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that
borrowing during the period less any investment income on the temporary investment of those borrowings. The
Company immediately recognizes other borrowing costs as an expense. To the extent that the Company borrows funds
generally and uses them for the purpose of obtaining a qualifying asset, the Company shall determine the amount of
borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset.
The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the
Company that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a
qualifying asset. The amount of borrowing costs that the Company capitalizes during a period shall not exceed the
amount of borrowing costs incurred during that period.
(10) Government grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be
received and the Company will comply with all attached conditions. Government grants relating to costs are deferred
and recognized in the statement of income over the period necessary to match them with the costs that they are intended
to compensate. Government grants relating to property, plant and equipment are presented as a deduction to related
assets and are credited to depreciation over the estimated useful lives of the related assets.
14


(11) Intangible assets
Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and
accumulated impairment losses.
Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives
of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. As
there are no foreseeable limits to the periods over which certain intangible assets are expected to be available for use,
those intangible assets are determined as having indefinite useful lives and not amortized.
Useful lives (years)

5
5
5 ~ 10
Development costs
Software
Industrial property rights
Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end
of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of
each reporting period to determine whether events and circumstances continue to support indefinite useful life
assessments for those assets. Changes are accounted for as changes in accounting estimates.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired.
When the excess is negative, bargain purchase gain is recognized immediately in profit or loss. Goodwill is not
amortized and stated at book value less accumulated impairment loss.
Development costs
Costs that are identifiable, controllable and directly attributable to development projects are recognized as intangible
assets when the following criteria are met:
- It is technically feasible to complete the development project so that it will be available for use;
- Management intends to complete the development project and use or sell it;
- There is an ability to use or sell the development project;
- It can be demonstrated how the development project will generate probable future economic benefits;
- Adequate technical, financial and other resources to complete the development and to use or sell the development
project are available; and
-The expenditure attributable to the development project during its development can be reliably measured.
Capitalized development costs that are recognized as intangible assets are amortized using the straight-line method over
their estimated useful lives from the date that they are available for use or sale.
Other development expenditures that do not meet these criteria are recognized in profit or loss as incurred. Development
costs previously recognized as an expense are not recognized as an asset in a subsequent period.
15


(11) Intangible assets, continued
Membership rights
Membership rights are regarded as intangible assets with indefinite useful lives and not amortized as there is no
foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. All
membership rights are tested annually for impairment and stated at cost less accumulated impairment losses.
(12) Investment property
Property held for the purpose of earning rentals or benefiting from capital appreciation or for both is classified as
investment property. If some portion of property is held for the purpose of owner-occupation and cannot be separated
by portions to dispose and the owner-occupied portion is immaterial, it is classified as investment property.
Investment property is measured initially at its cost. Transaction costs are included in the initial measurement.
Subsequently, investment property is carried at cost less accumulated depreciation and accumulated impairment losses.
Land is not depreciated. Depreciation on the investment property except for land is calculated using the straight-line
method to allocate their cost less residual values over 30 years.
Useful lives, depreciation method and residual values are reviewed at the end of each reporting date and adjusted, if
appropriate. The change of useful lives and residual values is accounted for as a change in an accounting estimate.
(13) Impairment of non-financial assets
Assets that have an indefinite useful life, such as goodwill, are not subject to amortization and are tested for impairment
annually. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the assets carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an assets fair value less costs to sell and value in use. The Company
estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount
of an asset, then the Company estimates the recoverable amount of cash-generating unit (CGU). An impairment loss
is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are
recognized in profit or loss. Non-financial assets other than goodwill for which impairment is recognized are reviewed
for possible reversal of the impairment at each reporting date.
16


(14) Employee benefits
Short-term employee benefits
Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the
period in which the employees render the related service. When an employee has rendered service to the Company
during an accounting period, the Company recognizes the benefits in separate statement of income.
Retirement benefits: defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Companys net
obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present
value. The fair value of plan assets is deducted. The calculation is performed annually by an independent actuary
using the projected unit credit method. The discount rate is the yield at the reporting date on corporate bonds that have
maturity dates approximating the terms of the Companys obligations and that are denominated in the same currency in
which the benefits are expected to be paid. The Company recognizes all actuarial gains and losses arising from
actuarial assumption changes and experiential adjustments in other comprehensive income when incurred.
(15) Provisions and contingent liabilities
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it
is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably
estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.
Contingent liabilities are:
- A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the entity, or
- A present obligation that arises from past events but is not recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, or
- The amount of the obligation cannot be measured with sufficient reliability.
17


(16) Income taxes
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss
except to the extent that it is related to a business combination, or items recognized directly in equity or in other
comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or
substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years.
The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding
the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods,
and non-taxable or non-deductible items from the accounting profit.
Deferred tax
Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A
deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all
deductible temporary differences to the extent that it is probable that taxable profit will be available against which they
can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary
differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting profit or loss nor taxable income.
The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in
subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the
timing of the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in
the foreseeable future.
The Company recognizes a deferred tax asset for all deductible temporary differences arising from investments in
subsidiaries and associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable
future and taxable profit will be available against which the temporary difference can be utilized.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period, the amount is reduced if it is
no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax
asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by
the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax
consequences that would follow from the manner in which the Company expects, at the end of the reporting period to
recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the taxable entity or different taxable entities where there is an intention either to settle
the balances on a net basis or to realize the asset and settle the liability simultaneously.
18


(17) Revenue recognition
Revenue is measured as the fair value of the consideration received or receivable for the sale of goods in the ordinary
course of the Companys activities. The Company recognizes revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefits will flow to the Company and when specific criteria have been
met for each of the Companys activities as described below.
Sale of goods
Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when persuasive
evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership
have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of
goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of
revenue can be measured reliably.
Interest income
Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the
Company reduces the carrying amount to its recoverable amount. Interest income on impaired receivables is
recognized using the original effective interest rate.
Royalty income
Royalty income is recognized on an accrual basis in accordance with the substance of the relevant agreement.
Dividend income
Dividend income is recognized when the right to receive payment is established.
Rental income
Rental income from investment property is recognized in profit on a straight-line basis.
(18) Dividend
Dividend liability is recognized in the separate statement of financial position when the dividends are approved by the
Companys shareholders.
(19) Earnings per share
The Company presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period, adjusted for own shares held.
19


(20) Significant accounting estimates and judgments
The Company makes estimates and assumptions concerning the future. Estimates and assumptions are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, differ from
actual results. The significant estimates and assumptions and those which have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities after the end of the reporting period are addressed below.
Fair value of derivative and other financial instruments
The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly
based on market conditions existing at the end of each reporting period.
Recoverable amount of trade receivables
The Company first assesses whether objective evidence of impairment exists individually for financial assets that are
individually significant, and individually or collectively for financial assets that are not individually significant. If the
Company determines that no objective evidence of impairment exists for an individually assessed financial asset,
whether significant or not, it includes the asset in a company of financial assets with similar credit risk characteristics
and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an
impairment loss is or continues to be recognized are not included in a collective assessment of impairment.
Recoverable amount of non-current assets
The carrying amounts of the Companys non-current assets are reviewed at the end of the reporting period to determine
whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is
estimated.
The residual value and the useful life of property, plant and equipment, intangible asset and investment property.
The residual value and the useful life of an asset shall be reviewed at least at each financial year-end. Considering
physical/technical obsolescence, and usability, prospective usable years and estimated recoverable value at the date of
disposal are reviewed. If expectations differ from previous estimates, the change shall be accounted for as a change in an
accounting estimate.
Defined benefit obligations
The Company is taking defined benefit plan for post-employment benefit. The present value of the defined benefit
obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions.
The Company determines the appropriate discount rate at the end of each year. This is the interest rate that is used to
determine the present value of estimated future cash outflows expected to be required to settle the defined benefit
obligations. Other key assumptions for defined benefit obligations are based in part on current market conditions.
Impairment of goodwill
The Company tests annually whether goodwill has suffered any impairment. The recoverable amounts of
cash-generating units have been determined based on value-in-use calculations. These calculations require the use of
estimates.
The Company recognizes provision for expected expenditures based on the warranty period (1~5 years) and past
experience rate by warranty, exchange, refund, defect repair and after-service for merchandises and finished goods.
Income taxes
The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will
be levied. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the current and deferred income tax assets and liabilities in the period in which such
determination is made.
(21) New standards and interpretations not yet adopted
The following new standards, interpretations and amendments to existing standards have been published and are
mandatory for the Company for annual periods beginning after January 1, 2012, and the Company has not early adopted
20

them. Management believes the impact of the amendments on the Companys separate financial statements is not
significant.
Amendments to K-IFRS No. 1019, Employee Benefits
The standard requires recognition of actuarial gains and losses immediately in other comprehensive income and to
calculate expected return on plan assets based on the rate used to discount the defined benefit obligation. The standard
will be applied retrospectively for the Companys annual periods beginning on or after January 1, 2013.
K-IFRS No. 1113, Fair Value Measurement
The standard defines fair value and a single framework for fair value, and requires disclosures about fair value
measurements. The standard will be applied prospectively for the Groups annual periods beginning on or after
January 1, 2013.
Amendments to K-IFRS No. 1001, Presentation of Financial Statements
The amendments require presenting in other comprehensive income on the basis of whether they are potentially
reclassifiable to profit or loss subsequently (reclassification adjustments). The amendment is mandatorily effective for
annual periods beginning on or after July 1, 2012.
21

4. Cash and Cash Equivalents
Cash and cash equivalents as of December 31, 2012 and 2011 are summarized as follows:
2012
Cash on hand
Bank deposits and others
2011
62
662,887
62
1,186,198
662,949
1,186,260
5. Restricted Deposits
Financial instruments which are restricted in use as of December 31, 2012 and 2011 are summarized as follows:
2012

Long-term financial instruments
2011
Description
50,000
23
-
- Win-Win cooperation deposits

23 Bank account deposits
29,000 Win-Win cooperation deposits
50,023
29,023
6. Trade and Other Receivables

(1) Trade and other receivables as of December 31, 2012 and 2011 are summarized as follows:
2012
Accounts and notes receivable - trade

Accounts and notes receivable - other
Less : non-current
Long-term accounts and notes receivable - trade
W
2011
3,839,037
35,544
3,874,581
3,907,565
14,474
3,922,039
(534)
(439)
3,874,047
3,921,600
Trade and other receivables from related parties as of December 31, 2012 and 2011 are W 3,170,834 million and W
3,250,112 million, respectively. The Company transferred certain accounts and notes receivable amounted to W
1,058,854 million to several financial institutions with recourse and treated them as borrowings as of December 31,
2012 (note 18).
The Company derecognizes accounts and notes receivables which are transferred without recourse. The amounts of
accounts and notes receivable which are not due as of December 31, 2012, and losses on sale of accounts and notes
receivable for the year then ended are W 307,050 million and W 1,788 million, respectively.
22

6. Trade and Other Receivables, Continued

(2) The Company recognized an allowance for doubtful accounts amounting to W 6,561 million based on individual
analysis for receivables impaired as of December 31, 2012. In addition, the Company recognized an allowance
for doubtful accounts amounting to W 1,222 million based on collective assessment of impairment based on past
experience for group of assets with similar credit risk.
Changes in allowance for doubtful accounts for the years ended December 31, 2012 and 2011 are as follows:
2012
2011
Balance at January 1
Reversal
Write-off
7,945
(162)
-
9,987
(1,623)
(419)
Balance at December 31
7,783
7,945
(3) The aging of trade and other receivables as of December 31, 2012 and 2011 are as follows:
As of December 31, 2012
Carrying
amount
Accounts and notes receivable - trade W

Allowance for doubtful accounts
6 months
or less
6-12
months
1-3
years
More than
3 years
3,840,192
(1,155)
3,839,037
3,838,474
(983)
3,837,491
1,430
1,430
116
116
172
(172)
-
42,172
(6,628)
35,544
35,495
(232)
35,263
287
(6)
281
5,439
(5,439)
-
951
(951)
-
3,874,581
3,872,754
1,711
116
23

6. Trade and Other Receivables, Continued

(3) The aging of trade and other receivables as of December 31, 2012 and 2011 are as follows, continued:
Carrying
amount
Accounts and notes receivable - trade W

6 months
or less
6-12
months
1-3
years
More than
3 years
3,908,784
(1,219)
3,907,565
3,905,791
(1,045)
3,904,746
1,498
1,498
1,323
(2)
1,321
172
(172)
-
21,200
(6,726)
14,474
14,772
(335)
14,437
5,439
(5,439)
-
989
(952)
37
3,922,039
3,919,183
1,498
1,321
37
7. Inventories
Inventories as of December 31, 2012 and 2011 are summarized as follows:

Acquisition
cost
Merchandises
Finished goods
Work-in- progress
Raw materials
Supplies
Materials-in- transit
Outsourcing
2012
Provision
for loss on
valuation
Carrying
amount
Acquisition
cost
2011
Provision
for loss on
valuation
Carrying
amount
479,966
31,482
73,929
136,142
15,730
55,617
20,949
(7,906)
(1,957)
(2,597)
(4,066)
-
472,060
29,525
71,332
132,076
15,730
55,617
20,949
516,702
24,910
64,746
118,987
12,388
57,611
11,298
(10,665)
(1,507)
(1,701)
(4,743)
-
506,037
23,403
63,045
114,244
12,388
57,611
11,298
813,815
(16,526)
797,289
806,642
(18,616)
788,026
The amounts of reversal of provision as deducted from cost of sales for the years ended December 31, 2012 and 2011
are W 2,090 million and W 4,110 million, respectively.
24

8. Other Current Assets
Other current assets as of December 31, 2012 and 2011 are summarized as follows:
2012
Accrued income
Advance payments
Prepaid expenses
Financial derivative assets
Prepaid value added tax
2011
26,311
7,049
50,273
46,978
16,467
2,761
11,091
8,054
24,538
130,611
62,911
9. Property, Plant and Equipment
(1) Property, plant and equipment as of December 31, 2012 and 2011 are summarized as follows:
Acquisition
costs
Accumulated
depreciation
Government
grant
Carrying
amount
Land
Buildings
Structures
Machinery
Tools
Furniture
and fixture
Construction
-in-progress
Vehicles
Total
707,147
720,817
43,467
905,468
200,248
147,821
62,419
36,717
2,824,104
(145,511)
(8,888)
(434,340)
(117,081)
(87,173)
(32,421)
(825,414)
(667)
(81)
(31)
(779)
707,147
575,306
34,579
470,461
83,086
60,648
29,967
36,717
1,997,911

Acquisition
costs
Accumulated
depreciation
Government
grant
Carrying
amount
Land
Buildings
Structures
Machinery
Tools
Furniture
and fixture
Construction
-in-progress
Vehicles
Total
698,439
629,214
36,422
711,396
165,203
113,800
60,438
90,057
2,504,969
(120,619)
(7,358)
(337,944)
(96,665)
(74,386)
(29,702)
(666,674)
(681)
(17)
(698)
698,439
508,595
29,064
372,771
68,521
39,414
30,736
90,057
1,837,597
25

9. Property, Plant and Equipment, Continued
(2) Changes in property, plant and equipment for the years ended December 31, 2012 and 2011 are summarized as
follows:
For the year ended December 31, 2012
Beginning
balance
Land
Buildings
Structures
Machinery
Tools
Furniture and
fixture
Vehicles
Constructionin -progress
Acquisition
(*1)
Disposal
Depreciation
Others(*2)
Ending
balance
698,439
508,595
29,064
372,771
68,521
9,295
20,525
1,286
31,983
24,840
(1,332)
(2)
(2,295)
(923)
(24,893)
(1,531)
(102,929)
(23,583)
745
71,079
5,762
170,931
14,231
707,147
575,306
34,579
470,461
83,086
39,414
30,736
23,849
4,397
(207)
(253)
(15,617)
(4,918)
13,209
5
60,648
29,967
90,057
230,314
(283,654)
36,717
1,837,597
346,489
(5,012)
(173,471)
(7,692)
1,997,911
(*1) Borrowing costs amounting to W 1,277 million are capitalized.

(*2) Others include reclassification of construction-in-progress and reclassification between accounts.
Beginning
balance
Land
Buildings
Structures
Machinery
Tools
Furniture and
fixture
Vehicles
Constructionin -progress
Acquisition
(*1)
Disposal
Depreciation
Others(*2)
Ending
balance
671,794
500,832
28,057
338,425
50,015
32,466
15,067
1,581
72,467
34,978
(6,719)
(128)
(118)
(1,509)
(548)
(23,393)
(1,406)
(86,184)
(20,788)
898
16,217
950
49,572
4,864
698,439
508,595
29,064
372,771
68,521
29,908
30,995
22,749
4,711
(202)
(215)
(14,630)
(4,755)
1,589
-
39,414
30,736
42,140
126,474
(78,557)
90,057
1,692,166
310,493
(9,439)
(151,156)
(4,467)
1,837,597
(*1) Borrowing costs amounting to W 439 million are capitalized.

(*2) Others include reclassification of construction-in-progress and reclassification between accounts.
26

10. Intangible Assets

(1) Changes in intangible assets for the years ended December 31, 2012 and 2011 are summarized as follows:
Beginning
balance
Goodwill
Industrial
property rights
Development
costs
Software
Membership
Acquisition
(*1)
Amortization
Impairment
losses
Disposals
Others(*2)
Ending
balance
588,395
588,395
2,858
683
(628)
(63)
2,850
22,683
31,402
71,494
10,653
12,253
362
(6,114)
(11,754)
-
(14)
-
(827)
7,692
-
27,222
39,579
71,029
716,832
23,951
(18,496)
(14)
(890)
7,692
729,075

(*2) Others include reclassification from construction-in-progress.
Beginning
balance
Goodwill
Industrial
property rights
Development
costs
Software
Membership
Acquisition
(*1)
Amortization
Impairment
losses
Disposals
Others(*2)
Ending
balance
588,395
588,395
2,871
645
(602)
(56)
2,858
23,624
29,669
71,601
8,264
12,238
241
(8,841)
(14,972)
-
(348)
(364)
4,467
-
22,683
31,402
71,494
716,160
21,388
(24,415)
(404)
4,103
716,832

(*2) Others include reclassification from construction-in-progress and reclassification between accounts.
(2) Research and development costs recorded in profit or loss the years ended December 31, 2012 and 2011 are W
359,099 million and W 319,987 million, respectively.
27

10. Intangible Assets, Continued

(3) Goodwill impairment
Goodwill, which amounts to W 588,395 million was acquired in a business combination with Hyundai Autonet Co.,
Ltd. This amount was allocated to module and part manufacturing division, one of the CGUs. The Company reviews
annually whether any impairment is identified.
The recoverable amounts of CGUs have been determined based on value in use using pre-tax cash flow projections
based on financial budgets covering a five-year period. Discount rate used for value in use calculations is 11.9%.
Cash flows beyond the five-year period are estimated by using 0% of expected growth rate. As a result of the
impairment test, no impairments were recognized for the year ended December 31, 2012.
Principal assumptions
Criteria used to determine principal assumptions
Gross profit ratio on sales

Growth rate of sales
Applying gross profit ratio on sales of last year

Considering same industrys sales growth rate of last five years
11. Investment Property

(1) Investment property as of December 31, 2012 and 2011 are summarized as follows:
Land
2012
Buildings
2011
Land
Buildings
Acquisition costs
Accumulated depreciation
37,348
-
36,061
(6,793)
40,268
-
36,061
(5,099)
Carrying amount
37,348
29,268
40,268
30,962
(2) Changes in investment property for the years ended December 31, 2012 and 2011 are summarized as follows:
Beginning balance
Land
Buildings
Disposals
Depreciation
Ending
balance
40,268
30,962
(2,920)
-
(1,694)
37,348
29,268
71,230
(2,920)
(1,694)
66,616
28

11. Investment Property, Continued

(2) Changes in investment property for the years ended December 31, 2012 and 2011 are summarized as follows,
continued:
Beginning balance
Land
Buildings
Acquisition
Ending
balance
Depreciation
39,605
31,978
663
678
(1,694)
40,268
30,962
71,583
1,341
(1,694)
71,230
(3) The fair value of investment property as of December 31, 2012 and 2011 are summarized as follows:
2012
Land
2011
36,685
32,835
39,605
32,835
69,520
72,440
Buildings
(4) The amount recognized in profit or loss from investment property for the years ended December 31, 2012 and 2011
are summarized as follows:
2012
Rental income
Operating expense
29
2011
4,467
(2,453)
4,577
(2,324)
2,014
2,253

12. Investment in Associates, Joint Venture and Subsidiaries

(1) Investment in subsidiaries as of December 31, 2012 and 2011 are summarized as follows:
2012
Ownership
(%)
2011
Carrying
amount
Ownership
(%)
Carrying
amount
Company
Location
Business
Hyundai IHL Co., Ltd.

Hyundai Life Insurance Co.,
Ltd.(*1)
Hyundai Motor (Shanghai) Co.,
Ltd.
Shanghai Hyundai Mobis
Automotive Parts Co., Ltd.
Jiangsu Mobis Automotive Parts
Co., Ltd.
Beijing Hyundai Mobis
Beijing Mobis Chonche
Wuxi Mobis Automotive Parts
Co., Ltd.(*2)
Tianjin Mobis Automotive Parts
Co., Ltd.
Mobis Parts Middle East FZE
Hyundai Mobis (Hongkong) Co.,
Limited.
Korea
Manufacturing the auto lighting

and electric apparatus
90.00% W
Korea
Life Insurance
58.61%
208,370
China
Sales of auto-parts
Manufacturing and sales of
auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
100.00%
18,228
100.00%
18,228
100.00%
163,741
87.50%
120,009
100.00%
96,915
100.00%
96,915
100.00%
223,061
100.00%
223,061
60.00%
17,304
60.00%
17,304
33.75%
24,814
33.75%
24,814
100.00%
100.00%
20,600
-
100.00%
100.00%
20,600
-
100.00%
100.00%
100.00%
195,332
100.00%
195,332
100.00%
100.00%
100.00%
19,637
59,107
25,159
100.00%
100.00%
100.00%
19,637
31,151
25,159
100.00%
33,213
100.00%
33,213
100.00%
17,044
100.00%
89,389
100.00%
88,464
100.00%
925
100.00%
20,503
100.00%
20,503
99.00%
50,676
99.00%
39,546
100.00%
61,367
100.00%
34,883
Mobis America Inc.
China
China
China
China
China
China
UAE
Hongkong
USA
American Autoparts, Inc.

Mobis Parts Europe N.V.
Mobis Parts Australia PTY., Ltd.
USA
Belgium
Australia
Mobis Slovakia s.r.o.

Mobis Automotive and Module
Industry Trade Co. - Joint
Stock Company(*3)
Slovakia
Turkey
Mobis India, Ltd.

Mobis India Research and
Development Private
Limited(*4)
India
Mobis Automotive Czech s.r.o.
Czech
Mobis Module CIS, LLC(*5)

Mobis Brasil Fabricacao De
Auto Pecas Ltda
Russia
India
Brazil
Sales of auto-parts
Sales of auto-parts
auto-parts
auto-parts
Sales of auto-parts
Sales of auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
auto-parts
30
33,213
1,377,673
90.00% W
33,213
1,042,957

12. Investment in Associates, Joint Venture and Subsidiaries, Continued

(1) Investment in subsidiaries as of December 31, 2012 and 2011 are summarized as follows, continued:
(*1) The Company acquired the share of Hyundai Life Insurance Co., Ltd. during 2012.
(*2) The Company and Shanghai Hyundai Mobis Automotive Parts Co., Ltd. hold 33.75% and 66.25% of stake,
respectively.
(*3) Mobis Automotive and Module Industry Trade Co. - Joint Stock Company was established on February 17,
2012.
(*4) Mobis India, Ltd. merged with Mobis India Research and Development Private Limited on October 1, 2012.
(*5) The Company and Mobis Parts CIS, LLC hold 99.00% and 1.00% of stake, respectively.
(2) Investment in associates and joint venture as of December 31, 2012 and 2011 are summarized as follows:
2012
Company
Location
Ownership
(%)
Business
2011
Carrying
amount
Ownership
(%)
Carrying
amount
Hyundai M&Soft
Korea
HL Green Power Inc.(*4)

HMC Investment Union
Hyundai Motor Group (China)
Ltd.
Beijing Hyundai Mobis Parts
Co., Ltd.
Beijing Mobis Transmission
Co., Ltd.(*5)
Mobis Parts Jiangsu Yueda
Trading Co., Ltd.
Korea
Korea
Automobile manufacture
and sales
Engineering and
construction
Engineering and
construction
ERP system design and
management
Manufacture and sales of
auto-parts
Electrical and electronic
research and
development
auto-parts
Development and supply
of software
auto-parts
Investment union
China
Investment
20.00%
27,747
20.00%
27,747
China
50.00%
20,983
50.00%
20,983
China
Sales of auto-parts
auto-parts
31.96%
61,433
China
Sales of auto-parts
50.00%
9,849
50.00%
9,849
Hyundai Motor Company

Hyundai Engineering &
Construction Co., Ltd.(*1)
Korea
Hyundai Amco Co., Ltd.(*2)

Hyundai Autoever Systems
Corporation
Korea
Hyundai Powertech Co., Ltd.
Korea
Hyundai Auto Electronics

Company Ltd (*3)
ZF Lemfoerder Chassis
Technology Korea Co., Ltd.
Korea
Korea
Korea
Korea
20.78% W
3,880,191
20.78% W
3,880,191
8.73%
1,243,724
8.73%
1,243,724
19.99%
80,843
19.99%
80,843
20.00%
21,425
20.00%
21,425
24.85%
132,002
24.85%
132,002
20.00%
20,116
27.34%
4,492
27.34%
4,492
25.67%
10,621
25.67%
10,621
51.00%
38.89%
14,790
21,202
51.00%
38.89%
14,790
21,202
31
5,487,985
5,529,302

12. Investment in Associates, Joint Venture and Subsidiaries, Continued

(2) Investment in associates and joint venture as of December 31, 2012 and 2011 are summarized as follows, continued:
(*1) Though the Company has below 20% of the ownership, the Company has significant influence through its
ability to appoint members of board of directors according to agreement among the stockholders.
(*2) Though the Company has below 20% of the ownership, the Company has significant influence through its
ability to participate in the financial and operating policy decisions.
(*3) The Company acquired the share of Hyundai Auto Electronics Company Ltd. during 2012.
(*4) HL Green Power Inc. was established in accordance with a joint venture agreement between the Company and
LG Chem, Ltd.
(*5) The Company sold its entire share of Beijing Mobis Transmission Co., Ltd. in 2012, and recorded gain on
disposal of investments in associates amounting to W 58,942 million.
(3) Fair value of marketable securities of associates as of December 31, 2012 and 2011 are summarized as follows:
2012
Hyundai Motor Company

Hyundai Engineering & Construction Co., Ltd.
32
2011
10,003,372
680,383
9,751,571
684,270
10,683,755
10,435,841

13. Available-for-sale Financial Assets

Available-for-sale financial assets as of December 31, 2012 and 2011 are summarized as follows:
2012
Acquisition
Carrying
cost
amount
Company
Debt securities
Local development bonds
Non-marketable securities
China Millennium Corporation I, Ltd.
China Millennium Corporation ,
Ltd.
China Millennium Corporation ,
Ltd.
Haevichi Hotel and Resort Co., Ltd.
Global Information Technology Co.,
Ltd.
MTComm Co., Ltd.
The Sign Co., Ltd.
GTWeb Korea, Inc.
Korea Association of Automobile
Industry
Mirae Asset Social Enterprise Venture
Investment
The Korea Economic Daily
Hyundai Partecs Company., Ltd.
ZF Sachs Korea Co., Ltd.
Daewoo Motor Co., Ltd.
Haevichi Country Club Ltd.
Daewoo Automobiles trust instrument
Mediazen Co., Ltd.
Easy Move Co., Ltd.
SB Telcom Co., Ltd.
Marketable securities
Hyundai Development Co., Ltd.
HMC Investment Securities Co., Ltd.
Hyundai Merchant Marine Co., Ltd.
Ssangyong Motor Co., Ltd.
Enova Systems, Inc.
Number of
shares
Ownership
(%)
-W
2011
Acquisition
Carrying
cost
amount
7
7
7
7
10.10%
2,099
2,099
2,099
2,099
10.10%
2,089
2,089
2,089
2,089
310,000
10.10%
10.00%
4,873
2,132
4,873
-
4,873
2,132
4,873
-
900,000
26,668
417,000
2,659
9.76%
17.58%
10.69%
5.32%
450
200
2,085
835
450
-
450
200
2,085
835
450
-
83
1.28%
15
15
15
15
106
531,090
1,040,000
908,960
2,569
450,000
209,339
32,026
100,965
2.52%
2.84%
13.00%
8.55%
15.00%
7.22%
7.79%
0.79%
106
2,656
5,200
635
2,274
16
2
321
25,988
106
2,656
5,200
635
16
2
321
18,462
106
2,656
5,200
635
2,274
44
2
187
25,882
106
2,656
5,200
635
44
2
187
18,356
437,500
4,623,587
61,642
60,127
80,000
0.58%
15.76%
0.04%
0.05%
0.18%
8,775
114,045
1,402
451
90
124,763
9,472
65,655
1,455
319
1
76,902
8,775
114,045
1,402
451
90
124,763
7,350
59,182
1,547
306
16
68,401
150,758
95,371
150,645
86,757
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured are recorded at acquisition cost.
33

14. Other Non-current Assets

Other non-current assets as of December 31, 2012 and 2011 are summarized as follows:
2012
Derivative financial assets

Long-term financial instruments
Deposits provided
Guarantee deposits
Long-term accounts and notes receivable - trade
2011
21,382
23
26,387
8,291
534
2,636
29,023
31,598
9,286
439
56,617
72,982
15. Trade and Other Payables

Trade and other payables as of December 31, 2012 and 2011 are summarized as follows:
2012
Accounts and notes payable - trade

Accounts and notes payable - other
2011
1,993,562
340,819
1,940,489
290,501
2,334,381
2,230,990
Trade and other payables to related parties as of December 31, 2012 and 2011 are W 687,475 million and
million, respectively.
34
W 588,675

16. Other Liabilities

Other liabilities as of December 31, 2012 and 2011 are summarized as follows:
2012

Accrued payroll
Accrued expenses
Advance from customers
Withholdings
Withholdings tax
Withholding deposits
Liability for payment guarantee
Financial derivative liabilities

Financial derivative liabilities
2011
17,063
51,207
102,974
9,689
687
16,730
1,045
3,965
203,360
16,690
47,448
67,870
10,156
810
16,236
982
18,037
178,229
459
459
25,993
25,993
203,819
204,222
17. Provision for Warranties

Changes in provision for warranties for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
Beginning of the year

Increase
Utilization
End of the year
Less: current provision for warranties

Non-current provision for warranties
35
2011
97,478
77,405
(63,083)
111,800
120,908
38,041
(61,471)
97,478
(58,235)
53,565
(49,350)
48,128

18. Bonds and Borrowings

(1) Bonds and short-term borrowings as of December 31, 2012 and 2011 are summarized as follows:
Current
Bonds
Short-term borrowings
2012
Non-current
Current
2011
Non-current
99,919
1,058,854
199,981
1,511,153
99,762
-
1,158,773
1,711,134
99,762
(2) Short-term borrowings as of December 31, 2012 and 2011 are summarized as follows:
Discounted accounts
receivable
Annual
interest rate
Lender
Korea Exchange Bank

and other
3M LIBOR + 0.75%
and other
2012
2011
1,058,854
1,511,153
2012
2011
(3) Bonds as of December 31, 2012 and 2011 are summarized as follows:
The 142nd unsecured bond

The 143rd unsecured bond
Annual
interest rate
Date of issue
7.08%
4.69%
2009.1.23
2010.6.30
Maturity
2012.1.23 W
2013.6.30
100,000
100,000
(81)
(99,919)
200,000
100,000
300,000
(257)
(199,981)
99,762
Less: discount
Less: current portion of bonds
36

19. Employee Benefits

(1) Defined benefit liabilities as of December 31, 2012 and 2011 are summarized as follows:
2012
2011
Present value of defined benefit obligations

Transfer to national pension fund
Fair value of plan assets
332,190
(309)
(250,228)
244,960
(319)
(189,221)
Defined benefit liabilities
81,653
55,420
(2) Changes in present value of defined benefit obligations for the years ended December 31, 2012 and 2011 are
summarized as follows:
2012
2011
Beginning balance
Current service costs
Interest costs
Actuarial losses
Increase due to transfers between affiliates
Benefit paid by the plan
244,960
42,109
11,374
41,253
181
(7,687)
228,900
35,926
12,491
15,601
73
(48,031)
Ending balance
332,190
244,960
(3) Changes in fair value of plan assets for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
2011
Beginning balance
Expected returns on plan assets
Actuarial gains
Contribution paid into the plan
Increase due to transfers between affiliates
Benefit paid by the plan
189,221
8,203
1,043
55,233
39
(3,511)
164,639
6,306
1,886
41,456
55
(25,121)
Ending balance
250,228
189,221
(4) The components of plan assets as of December 31, 2012 and 2011 are summarized as follows:
2012
Time deposits
Insurance contract of guaranteed interest
Insurance contract of dividend and linkage interest rate
37
2011
158,766
91,462
-
120,160
69,046
15
250,228
189,221

19. Employee Benefits, Continued

(5) The components of retirement benefit costs for the years ended December 31, 2012 and 2011 are summarized as
follows:
2012
Current service costs

Interest costs
Expected returns on plan assets
2011
42,109
11,374
(8,203)
35,926
12,491
(6,306)
45,280
42,111
Total expenses for retirement benefit costs for the year ended December 31, 2012 consist of W 7,584 million
recorded as cost of sales, W 27,050 million as selling, general and administrative expenses (excluding research
and development expense) and W 10,646 million as research and development expenses. The actual return on
plan assets is W 9,246 million for the year 2012 and the Company expects to pay contribution into the plan
amounting to approximately W 79,274 million for the year 2013.
(6) Historical information for the amounts related to defined benefit plans recognized for the current year and previous
years are as follows:
December 31,
2012
Defined benefit obligation

Plan assets
Deficit
Actuarial losses on defined benefit
obligations
Actuarial gains (losses) on plan assets
December 31,
2011
December 31,
2010
January 1,
2010
332,190
250,228
81,962
244,960
189,221
55,739
228,900
164,639
64,261
179,662
138,881
40,781
(41,253)
1,043
(15,601)
1,886
(26,178)
(739)
(7) Principal actuarial assumptions used as of December 31, 2012 and 2011 are summarized as follows:
Discount rate at December 31

Rate of expected return on plan assets at January 1
Rate of future salary increases
2012
2011
3.93%
4.39%
5.00%
4.77%
3.99%
5.00%
The discount rate is the market yield at the end of the reporting period on high quality corporate bonds that have
maturity approximating the terms of the Companys obligations and that are denominated in the same currency
in which the benefits are expected to be paid. Rate of expected return on plan assets is estimated based on
historical data.
38

20. Derivatives Financial Instruments

The Company entered into financial derivative contracts to manage the exposure to changes in currency exchange rates
for foreign currency receivables. The Company transfers contracted amounts of foreign currency to a counter party
(financial institutions) at the maturity date, and receives in Korean won translated using the contracted exchange rate.
Financial derivative contracts as of December 31, 2012 are summarized as follows:
(In millions of foreign currency)
Currency
USD
EUR
JPY
Amount
1,115
300
7,307
Strike Price in won
Maturity
1,085 ~ 1,190
1,391 ~ 1,599
14.10 ~ 15.04
January 31, 2013 ~ December 31, 2018

The Company recognized unrealized gains and losses on valuation of the financial derivatives in profit or loss
amounting to W 10,535 million and W 8,645 million, respectively, for the year ended December 31, 2012, and
recorded unrealized gains and losses on valuation of the financial derivatives (before income tax effect) amounting to
W 70,019 million and W 3,729 million, respectively, as other equity as of December 31, 2012.
21. Stockholders Equity

(1) The Companys capital stock as of December 31, 2012 and 2011 are summarized as follows:
2012
Common
stock
Authorized number of shares
Par value per share in won
Issued number of shares
Capital stock in millions of won
W
W
275,000,000
5,000
97,343,863
490,969
2011
Preferred stock
25,000,000
5,000
25,458
127
Common
stock
275,000,000
5,000
97,343,863
490,969
Preferred
stock
25,000,000
5,000
25,458
127
Pursuant to Articles of Incorporation, the Company is authorized to issue shares of non-voting preferred stock up to 25
million shares. In case the Company is not able to pay the agreed additional dividends for preferred stock, the
preferred shareholders are given the voting rights from the date of the general shareholders meeting which approves
the suspension of dividends to preferred stock, to the date of the general shareholders meeting which approves the
resumption of the dividends to preferred stock.
As approved by the Board of Directors on March 15, 2003, the Company retired 850,000 treasury shares with a gain
of 18,813 million. Accordingly, the number of shares issued has been decreased but the amount of paid up
capital stock has not been affected.
39

21. Stockholders Equity, Continued

(2) Capital surplus as of December 31, 2012 and 2011 are summarized as follows:
2012
Additional paid-in capital

Revaluation reserve
Other capital surplus
2011
1,283,312
27,664
74,767
1,283,312
27,664
74,767
1,385,743
1,385,743
22. Treasury Stock

The Company acquires treasury stocks for price stabilization, stock dividends, and exercise of appraisal rights of
dissenting shareholders at the time of merge. The Company plans to retire the shares depending on the market
conditions. Changes in treasury stock for the years ended December 31, 2012 and 2011 are summarized as follows.
2012
(In millions of won, except share information)
Number of
shares
2011
Carrying
amount
Number of
shares
Carrying
amount
Beginning balance
Purchase
Issuance
1,806,615 W
1
-
121,688
-
1,943,319 W
5
(136,709)
130,896
1
(9,209)
Ending balance
1,806,616 W
121,688
1,806,615 W
121,688
23. Other Equity

Other equity as of December 31, 2012 and 2011 are summarized as follows:
2012
Other capital adjustments

Unrealized gain on valuation of available-for-sale financial
assets
Unrealized loss on valuation of available-for-sale financial
assets
Unrealized gain on valuation of financial derivative assets
Unrealized loss on valuation of financial derivative assets
40
2011
(20,742)
(20,742)
568
110
(36,847)
53,074
(2,826)
(42,832)
11,882
(35,738)
(6,773)
(87,320)

24. Retained Earnings

(1) Retained earnings as of December 31, 2012 and 2011 are summarized as follows:
2012
Legal reserve
Voluntary reserve
Unappropriated retained earnings
2011
231,039
9,211,866
2,221,344
214,315
7,907,866
1,488,532
11,664,249
9,610,713
(2) Legal reserve

The Korean Commercial Code requires the Company to appropriate a legal reserve in an amount equal to at least
10% of cash dividends for each accounting period until the reserve equals 50% of stated capital. The legal reserve
may be used to reduce a deficit or may be transferred to common stock in connection with a free issue of shares.
(3) Voluntary reserve
Under the Special Tax Treatment Control Law, the Company appropriates a certain portion of retained earnings,
pursuant to a shareholder resolution, as a voluntary reserve. This reserve may be reversed and transferred to
unappropriated retained earnings by the resolution of shareholders, and be distributed as dividends after its
reversal.
(4) Statements of appropriation of retained earnings for the years ended December 31, 2012 and 2011 are as follows:
Date of Appropriation for 2012: March 15, 2013
Date of Appropriation for 2011: March 16, 2012
2012
Unappropriated retained earnings

Balance at beginning of year
Actuarial losses
Profit for the year
Transfers from voluntary reserves

Reserve for research and human resource development
Appropriation of retained earnings
Legal reserve
Voluntary reserve
Dividends
Unappropriated retained earnings to be carried over to subsequent
year
41
2011
572
(30,480)
2,251,252
2,221,344
(243,814)
(10,396)
1,742,742
1,488,532
106,330
106,330
6,000
6,000
14,509
2,131,000
181,571
2,327,080
16,724
1,310,000
167,236
1,493,960
594
572

25. Dividends
(1) Dividends for the years ended December 31, 2012 and 2011 are as follows:
(In millions of won, except share
information and ratio)
Number of shares
Par value per share in won
Dividends as a percentage of par
value
Cash dividends
2012
Preferred
stock
Common
stock
Common
stock
Total
2011
Preferred
stock
Total
95,537,247
5,000
25,458
5,000
95,562,705
-
95,537,248
5,000
25,458
5,000
95,562,706
-
38.0%
181,521
39.0%
50
181,571
35.0%
167,190
36.0%
46
167,236
(2) Dividends as a percentage of net income for the years ended December 31, 2012 and 2011 are as follows:
2012
(In millions of won, except for ratio)
Dividend amount
Profit for the year
Dividend as a percentage of net income
2011
181,571
2,251,252
8.10%
167,236
1,742,742
9.60%
(3) Dividend yield ratio for the years ended December 31, 2012 and 2011 are as follows:
(In won, except for ratio)
Dividend per share

Market price at the end of year
Dividend yield ratio
2012
Common
Preferred
stock
stock
1,900
1,950
288,000
105,000
0.66%
1.86%
42
2011
Common
Preferred
stock
stock
1,750
1,800
292,000
148,000
0.60%
1.22%

26. Revenue
Revenue for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
Sales of merchandise (domestic)

Sales of merchandise (overseas)
Sales of finished goods (domestic)
Sales of finished goods (overseas)
2011
2,695,590
6,842,882
2,547,897
4,779,325
2,583,877
6,244,260
2,425,309
4,632,755
16,865,694
15,886,201
27. Nature of Expenses

Details of nature of expenses for the years ended December 31, 2012 and 2011 are as follows:
2012
Changes in inventories and purchase of merchandise

Raw material consumed
Employee benefits expense
Depreciation and amortization
Freight
Advertising
Others
2011
4,974,600
7,434,900
707,864
193,661
302,530
51,132
888,641
4,641,062
7,190,385
640,710
177,265
290,497
52,840
754,600
14,553,328
13,747,359
Total amount is the sum of cost of sales and selling, general, and administrative expenses in separate statement of
income.
43

28. Selling, General and Administrative Expenses

Selling, general and administrative expenses for the years ended December 31, 2012 and 2011 are summarized as
follows:
2012
Salaries
Retirement benefits
Other employee benefits
Service fees
Research and development costs
Depreciation and amortization
Advertising
Transportation
Rent
Supplies expense
Office and IT maintenance
Others
2011
296,593
27,050
59,277
107,759
359,099
43,695
51,132
75,377
15,897
6,248
35,771
54,829
270,472
23,989
52,711
95,333
319,987
47,025
52,840
66,659
15,679
7,718
32,317
41,855
1,132,727
1,026,585
29. Other Income and Expense

Other income and expense for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
Other income:
Foreign exchange transaction gain
Foreign exchange translation gain
Gain on sale of property, plant and equipment
Reversal of allowance for doubtful accounts
Realized gain of financial derivatives
Unrealized gain of financial derivatives
Miscellaneous gain
Other expense:
Foreign exchange transaction loss
Foreign exchange translation loss
Donation
Loss on sale of accounts and notes receivable trade
Loss on sale of property, plant and equipment
Loss on sale of intangible assets
Loss on sale of investment property
Impairment loss on intangible assets
Realized loss of financial derivatives
Unrealized loss of financial derivatives
Miscellaneous loss
Net other income (expense):
44
2011
56,192
4,789
938
98
35,644
10,535
28,007
136,203
106,527
21,197
547
2,323
22,738
6,275
28,184
187,791
125,296
25,598
13,263
1,788
1,376
14
369
890
7,733
8,645
2,592
187,564
105,465
21,134
15,599
1,594
404
19,433
7,906
380
171,915
(51,361)
15,876

30. Financial Instruments Related Income and Expense

(1) Financial instruments related income and expense classified as other income and other expense for the years ended
December 31, 2012 and 2011 are summarized as follows:
2012
Other income:
Realized gain of financial derivatives
Unrealized gain of financial derivatives
Other expense:
Loss on sale of accounts and notes receivable trade
Realized loss of financial derivatives
Unrealized loss of financial derivatives
2011
56,192
4,789
35,644
10,535
107,160
106,527
21,197
22,738
6,275
156,737
125,296
25,598
1,788
7,733
8,645
169,060
105,465
21,134
19,433
7,906
153,938
(61,900)
2,799
(2) Financial instruments related income and expense classified as finance income and finance expense for the years
ended December 31, 2012 and 2011 are summarized as follows:
2012
Finance income:
Interest income
Dividend income
Finance expense:
Interest expense
Loss on sale of available-for-sales financial assets
45
2011
125,533
338,546
125,726
19,200
609,005
79,378
109,786
119,731
19,084
327,979
25,361
64,988
1,726
16
92,091
38,676
135,336
17,586
59
191,657
516,914
136,322

30. Financial Instruments Related Income and Expense, Continued

(3) Categories of finance income and expense for the years ended December 31, 2012 and 2011 are summarized as follows:
Financial assets
at fair value
through profit
or loss
Held-tomaturity
investments
Availablefor-sale
financial
assets
Loans and
receivables
Financial
liabilities
measured at
amortized cost
Investment in
associates and
subsidiaries
Derivatives
financial
instruments
Total
Recognized in profit or loss:

Interest income
Dividends income
Foreign exchange
transaction gain
Foreign exchange
translation gain
Realized gain of financial
derivatives
Unrealized gain of
financial derivatives
Interest expense
Foreign exchange
transaction loss
Foreign exchange
translation loss
Loss on sale of accounts
and notes receivable
trade
Loss on sale of
available-for-sales
financial assets
Realized loss of financial
derivatives
Unrealized loss of
125,533
-
430
338,116
125,533
338,546
65,234
116,684
181,918
2,151
21,838
23,989
35,644
35,644
(25,361)
10,535
-
10,535
(25,361)
(156,376)
(33,908)
(190,284)
(1,906)
(27,324)
(25,418)
(1,788)
(1,788)
(16)
(16)
(7,733)
(7,733)
(8,645)
(8,645)
9,336
414
338,116
77,347
29,801
455,014
192,918
(183,582)
430
(16)
338,116
-
138,522
(61,175)
46,179
(16,378)
716,165
(261,151)
6,443
74,104
80,547
6,443
74,104
80,547
9,336
6,857
338,116
77,347
103,905
535,561
Finance income
Finance expense
Recognized in other comprehensive income:

Unrealized gain on
W
valuation
46

30. Financial Instruments Related Income and Expense, Continued

(2) Categories of finance income and expense for the years ended December 31, 2012 and 2011 are summarized as follows,
continued:
Financial assets
at fair value
through profit
or loss
Held-tomaturity
investments
Availablefor-sale
financial
assets
Loans and
receivables
Financial
liabilities
measured at
amortized cost
Investment in
associates and
subsidiaries
Derivatives
financial
instruments
Total
Recognized in profit or loss:

Interest income
Dividends income
Foreign exchange
transaction gain
Foreign exchange
translation gain
Realized gain of financial
derivatives
Unrealized gain of
Interest expense
Foreign exchange
transaction loss
Foreign exchange
translation loss
Loss on sale of accounts
and notes receivable
trade
Loss on sale of
available-for-sales
financial assets
Realized loss of financial
derivatives
Unrealized loss of
79,378
-
341
109,445
79,378
109,786
141,875
84,383
226,258
20,304
19,977
40,281
22,738
22,738
(38,676)
6,275
-
6,275
(38,676)
(142,425)
(98,376)
(240,801)
(19,657)
(19,063)
(38,720)
(59)
(59)
(19,433)
(19,433)
(7,906)
(7,906)
79,475
282
109,445
(51,755)
1,674
139,121
241,557
(162,082)
341
(59)
109,445
-
104,360
(156,115)
29,013
(27,339)
484,716
(345,595)
(35,804)
(30,899)
(66,703)
(35,804)
(30,899)
(66,703)
79,475
(35,522)
109,445
(51,755)
(29,225)
72,418
Finance income
Finance expense
Recognized in other comprehensive loss :

Unrealized loss on
W
valuation
47

31. Income Taxes

(1) The component of income tax expense for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
2011
Current tax expense

Adjustment for prior periods
Origination and reversal of temporary differences
Income tax recognized in other comprehensive income
Foreign taxes and others
523,251
393
22,879
(15,985)
55,071
424,321
(2,443)
80,611
16,368
29,441
Total income tax expense
585,609
548,298
(2) Income taxes recognized directly in other comprehensive income for the years ended December 31, 2012 and 2011
are summarized as follows:
2012
Current income tax:

Gain on sale of treasury stock
Deferred income tax:

Loss (gain) on valuation of available-for-sale
financial assets
Loss (gain) on valuation of derivative instruments
Actuarial losses
Income tax recognized directly in other
comprehensive income
2011
-
(8,458)
(8,458)
(2,057)
(23,658)
9,730
(15,985)
11,689
9,818
3,319
24,826
(15,985)
16,368
Income tax related to gain on sale of treasury stock was recognized directly in equity and income tax related to
actuarial loss (gain), loss (gain)on valuation of available-for-sale financial assets and loss (gain) on valuation of
derivative instruments were recognized in other comprehensive income.
48

31. Income Taxes, Continued

(3) Reconciliation of effective tax rate for the years ended December 31, 2012 and 2011 are summarized as follows:
2012

Statutory tax rate
Income tax using statutory tax rate
Adjustment for:
Non-taxable income and non-tax deductible expense
Tax credits
Current adjustments for prior periods
Foreign taxes
Others
Income tax expenses

Average effective tax rate
2011
2,836,861
24.20%
686,520
2,291,040
24.20%
554,432
(6,367)
(165,520)
393
55,071
15,512
(100,911)
(5,720)
(85,293)
(2,443)
29,441
57,881
(6,134)
585,609
20.64%
548,298
23.90%
(4) Deferred tax expenses by origination and reversal of deferred tax assets and liabilities for the years ended
December 31, 2012 and 2011 are summarized as follows:
2012
Deferred tax liabilities as of the end of the period

Deferred tax liabilities as of the beginning of the period
Deferred tax expenses by origination and reversal of
temporary differences
2011
613,131
590,252
590,252
509,641
22,879
80,611
(5) As of December 31, 2012, the tax effects of temporary differences were calculated by using 24.2%, the expected
future tax rate for the fiscal years when the temporary differences are expected to be reversed.
49


(6) Changes in deferred tax assets and liabilities for the years ended December 31, 2012 and 2011 are summarized as
follows:
Beginning
balance
Land
Investment in subsidiaries and
associates
Depreciation
Valuation of derivative instruments
Reserve for research and
development
Valuation of available-for-sale
financial assets
Impairment losses on
available-for-sale financial assets
Allowance for valuation of
inventories
Others
Other
comprehensive
income
Profit
(loss)
Ending balance
(97,460)
1,252
(96,208)
(316,833)
(112)
(7,657)
7,616
27,558
(5,040)
2,016
-
9,730
(23,658)
(289,275)
4,578
(5,641)
(16,042)
(227,236)
(37,188)
(264,424)
13,640
(2,057)
11,583
8,589
8,589
4,505
23,590
1,106
(506)
3,466
1,548
3,999
27,056
2,654
(590,252)
(6,894)
(15,985)
(613,131)
50


(6) Changes in deferred tax assets and liabilities for the years ended December 31, 2012 and 2011 are summarized as
follows, continued:
Beginning
balance
Land
Investment in subsidiaries and
associates
Depreciation
Valuation of derivative instruments
Reserve for research and
development
Valuation of available-for-sale
financial assets
Impairment losses on
available-for-sale financial assets
Allowance for valuation of
inventories
Others
Other
comprehensive
income
Profit
(loss)
Ending balance
(88,600)
(8,860)
(97,460)
(292,230)
(1,151)
(8,816)
(2,202)
(24,603)
(2,280)
1,159
-
3,319
9,818
(316,833)
(112)
(7,657)
7,616
(161,830)
(65,406)
(227,236)
1,951
11,689
13,640
7,808
781
8,589
5,500
28,473
1,456
(995)
(4,883)
(350)
4,505
23,590
1,106
(509,641)
(105,437)
24,826
(590,252)
(7) Deferred income tax assets and liabilities are offset as there is a legally enforceable right to offset current tax assets
against current tax liabilities and the deferred income tax assets and liabilities relate to income taxes levied by same
taxation authority.
51

32. Earnings per Share

(1) Basic earnings per share for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
(In millions of won, except share information)
Profit for the year

Dividends on preferred stock
Additional income available for dividends allocated to preferred
stock
Net income attributable to common stocks
Weighted average number of common shares outstanding(*)
Earnings per share in won
2011
2,251,252
(50)
1,742,742
(46)
(551)
2,250,651
95,537,248
(420)
1,742,276
95,423,761
23,558
18,258
(*) Weighted average number of common shares outstanding:

2012
(In shares)
Weighted average number of common shares issued

Weighted average number of treasury stock
Weighted average number of common shares
outstanding at December 31
2011
97,343,863
(1,806,615)
97,343,863
(1,920,102)
95,537,248
95,423,761
(2) Diluted earnings per share

Diluted earnings per share are not calculated for the years ended December 31, 2012 and 2011, because there are no
dilutive shares as of December 31, 2012 and 2011.
52

33. Transactions and Balances with Related Parties

(1) Subsidiaries as of December 31, 2012 are summarized as follows:
Location
Korea
Korea
China
China
China
China
China
China
China
Hongkong
USA
USA
USA
USA
USA
Brazil
Belgium
Russia
Russia
Slovakia
Czech
Turkey
UAE
Egypt
India
Australia
Company
Hyundai IHL Co., Ltd.
Hyundai Life Insurance Co., Ltd.
Beijing Hyundai Mobis Automotive Parts Co., Ltd.
Jiangsu Mobis Automotive Parts Co., Ltd.
Wuxi Mobis Automotive Parts Co., Ltd.
Shanghai Hyundai Mobis Automotive Parts Co., Ltd.
Hyundai Motor (Shanghai) Co., Ltd.
Beijing Mobis Chonche Automotive Parts Co., Ltd.
Tianjin Mobis Automotive Parts Co., Ltd.
Hyundai Mobis (Hongkong) Co., Limited.
Mobis America Inc.
Mobis Alabama, LLC
Mobis Parts America, LLC
American Autoparts, Inc.
Mobis North America, LLC
Mobis Brasil Fabricacao De Auto Pecas Ltda
Mobis Parts Europe N.V.
Mobis Parts CIS, LLC
Mobis Module CIS, LLC
Mobis Slovakia s.r.o.
Mobis Automotive Czech s.r.o.
Mobis Automotive and Module Industry Trade Co. - Joint Stock Company
Mobis Parts Middle East FZE
Mobis Auto Parts Middle East Egypt
Mobis India, Ltd.
Mobis Parts Australia PTY., Ltd.
(2) Transactions which occurred in the normal course of business of the Company with related parties for the years ended
December 31, 2012 and 2011 are as follows:
Sales and other income
2012
2011
Associates and joint venture

Subsidiaries
Others
Purchase and other expense

2012
2011
4,491,548
5,040,188
4,315,298
4,413,342
4,634,855
3,857,273
1,251,334
402,932
973,672
1,329,617
352,034
1,006,671
13,847,034
12,905,470
2,627,938
2,688,322
53

33. Transactions and Balances with Related Parties, Continued

(3) Account balances of the Company with related parties as of December 31, 2012 and 2011 are as follows:
Receivables
2012
Associates and joint venture
Subsidiaries
Others
Payables
2011
2012
2011
971,188
1,253,294
946,352
906,946
1,522,393
820,773
350,093
103,594
233,788
288,187
90,658
209,830
3,170,834
3,250,112
687,475
588,675
(4) The Company has financial instrument investment amounting to W 160,000 million at HMC investment securities
Co., Ltd. as of December 31, 2012.
(5) The Company has provided payment guarantees for related parties as of December 31, 2012 (note 34).
(6) Executive compensation of the Company for the years ended December 31, 2012 and 2011 are summarized as
follows:
2012
Short-term employee benefits

Retirement benefits
54
2011
31,176
8,551
28,691
9,699
39,727
38,390

34. Commitments and Contingencies

(1) As of December 31, 2012, the Company is provided with guarantees by Korea Exchange Bank and other financial
institutions, amounting to W 6,260 million (2011: W 7,623 million) and USD 25,346 thousand (2011: USD 25,435
thousand).
(2) As of December 31, 2012, the Company has provided payment guarantees amounting to W 440,476 million (2011:
W 403,477 million) and USD 1,375,590 thousand (2011: USD 1,350,783 thousand) for various borrowings and
business transactions of related parties.
(3) As of December 31, 2012, the Company has been named as a defendant in eight pending litigations. The
aggregate amount of claims amounted to approximately W 2,560 million. The ultimate effect of these cases
cannot be presently determined. No provision for potential losses arising from these cases has been reflected in
the accompanying separate financial statements.
(4) The Company acquired the shares of Hyundai Engineering & Construction Co., Ltd. along with terms of a contract
that the Company is prohibited from selling the shares, offering it as collateral or split for two years from April 1,
2011, the date of acquisition. 1,565,678 shares of the Company, which is 10% of the acquisition value, were
deposited in an escrow account as guarantee for execution of the contract.
(5) As of December 31, 2012, the Company has entered into contracts for the development of new technology related
to airbags, audio and others with 27 companies including Bosch and Dolby. In connection with these contracts,
the Company recognized royalty expense amounting to W 34,192 million and W 31,298 million for the years
ended December 31, 2012 and 2011, respectively.
(6) As of December 31, 2012, the Company entered into bank overdraft agreements for borrowings up to W 226,000
million with Korea Exchange Bank and others, and also entered into general term loan agreements up to W
150,000 million with Standard Chartered First Bank Korea Ltd. and others. The Company has accommodation
note discounting agreements of up to W 19,000 million with Citibank Korea Inc. and others, and has agreement to
open letters of usance credit up to USD 60,000 thousand and W 8,000 million with Korea Exchange Bank and
others. In addition, the Company has agreements with Korea Exchange Bank and others to open documents
against acceptance and documents against payment up to USD 2,282,610 thousand and W 212,400 million,
respectively. Further, the Company has an agreement with Korea Exchange Bank and others for the trade
receivable-collateralized loans without recourse for up to W 400,000 million and has an agreement with Hana
Bank and others for the buy-back card for up to W 190,000 million.
(7) The Company has provided guarantee for fulfilment of a contract of Mobis North America, LLC with Daimler
Chrysler for long-term auto parts supply and land-rent, as approved by the Board of Directors on April 28, 2005.
Mobis North America, LLC is the entity invested by the Company, with the purpose of production and supply of
auto parts to the factory of Daimler Chrysler in Toledo.
55

35. Separate Statements of Cash Flows

(1) Cash generated from operations for the years ended December 31, 2012 and 2011 are summarized as follows:
2012
Profit for the year

Adjustments for:
Salaries
Retirement benefits
Accrual for warranties
Depreciation
Amortization
Depreciation of investment property
Bad debts expense
Interest expense
Income tax expense
Foreign currency translation loss (gain), net
Gain on disposal of investments in associates and subsidiaries
Loss on sale of available-for-sale financial assets
Loss on sale of property, plant and equipment, net
Impairment loss on intangible assets
Interest income
Dividends income
Reversal of allowance for doubtful accounts
Loss (gain) on valuation of financial derivatives, net
Others
Changes in assets and liabilities:

Accounts and notes receivable - trade
Other receivables
Inventories
Accounts and notes payable - trade
Other payables
Payment of retirement benefits
Benefit plan assets
Cash generated from operations
56
2011
2,251,252
1,742,742
45,280
77,405
173,471
18,496
1,694
25,361
585,609
3,335
(58,942)
16
438
890
(125,533)
(338,546)
(162)
(1,890)
383
407,305
44,156
42,111
38,041
151,156
24,415
1,694
700
38,676
548,298
(1,561)
59
1,047
404
(79,378)
(109,786)
(2,323)
1,631
153
699,493
46,238
(44,227)
(9,263)
2,462
(2,207)
54,907
50,939
(63,083)
31,526
1,755
(7,687)
(51,571)
9,789
(639,681)
3,535
(73,428)
(3,887)
(442)
83,764
57,683
(61,471)
7,695
(232)
(48,031)
(16,220)
(690,715)
2,668,346
1,751,520

35. Separate Statements of Cash Flows, Continued

(2) Significant non-cash investing and financing activities for the years ended December 31, 2012 and 2011 are
summarized as follows:
2012
Transfer of construction-in-progress
Reclassification of current portion of bonds
2011
283,654
99,919
78,557
199,981
383,573
278,538
36. Risk Management

The Companys activities are exposed to a variety of financial risks: market risk (comprised of foreign exchange risk,
price risk and interest rate risk), credit risk and liquidity risk. The Company monitors and manages the financial risk
arising from the Companys underlying operations in accordance with the risk management policies and programs.
Financial risk management is carried out for the Company's financial assets (cash and cash equivalents, short-term
financial assets available-for-sale financial assets, and trade and other receivables) and financial liabilities (trade and
other payables, borrowings and bonds).
(1) Market risk
Foreign exchange risk
The Company is exposed to foreign exchange risk arising from export in sales and import in purchases amount, which
is denominated in foreign currencies. The Companys primary exposure is related to changes in exchange rates for
the US Dollars and Euro and the Company manages to minimize financial risk on fluctuations in foreign exchange in
order to stabilize operating activities.
The Company is exposed to foreign exchange risk arising from various currency exposures. As of December 31,
2012 and 2011, if the Companys functional currency had weakened / strengthened by 10% against foreign currencies
with all other variables held constant, profit before income taxes for the year would have been affected as follows:
2012
10% Up
2011
10% Down
20,461
10% Up
(20,461)
10% Down
(601)
601
Price risk
The Companys activities are exposed to price risk related to marketable securities by changes of market price.
Marketable financial instruments as of December 31, 2012 and 2011 are as follows:
2012
57
2011
76,909
68,401

36. Risk Management, Continued

(1) Market risk, continued
Interest rate risk
The purpose of the Company's interest rate risk management is to mitigate the interest rate risk and minimize the net
interest expense, further to optimize the enterprise value. Interest rate risk is the risk that interest income and interest
expense from deposits and borrowings fluctuate, according to the fluctuation of future interest rate in market. Interest
rate risk is mostly originated from floating rate deposits and borrowings. Since the Company manages the interest rate
risk only by using fixed rate financial instruments, changes in interest rate does not affect the Companys profit.
(2) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Companys receivables from customers and
investment securities. To manage credit risks relating to trade receivables, the Company evaluates the credit rating
of customers and determines credit limit for each customer based on the information provided by credit rating
agencies and other available financial information before commencing business with customers.
Credit risk is borne by not only the credit risk arisen by customers with receivables and firm contracts but cash and
cash equivalent, financial derivatives, bank deposit, and financial institution deposit. For the purpose of lowering the
credit risk, the Company has transactions only with the financial institutions with high credit rating. The book value
of financial assets means maximum exposure in respect of credit risk.
The book value of financial assets means maximum exposure in respect of credit and counterparty risk.
maximum exposure as of December 31, 2012 and 2011 are summarized as follows:
2012
Cash and cash equivalent (*)

(*) Cash on hand is excluded.
58
The
2011
662,887
2,964,000
3,874,047
76,584
95,371
56,617
1,186,198
1,210,000
3,921,600
24,521
86,757
72,982
7,729,506
6,502,058


(3) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company maintains adequate
sources of liquidity to settle short-term financial liabilities by periodic analysis of expected cash outflows.
The contractual maturities of financial liabilities as of December 31, 2012 and 2011 are summarized as follows:
Carrying
amount
Non-derivative financial liabilities

Current portion of long-term debt
and short-term borrowings
Derivative financial liabilities

Contractual
cash flows
Within
1 year
1~5 years
1,158,773
2,334,381
85,000
1,045
3,579,199
1,158,854
2,334,381
85,000
1,473,394
5,051,629
1,158,854
2,334,381
85,000
757,403
4,335,638
715,991
715,991
4,424
4,424
4,424
4,424
3,965
3,965
459
459
3,583,623
5,056,053
4,339,603
716,450

Carrying
amount
Non-derivative financial liabilities

Current portion of long-term debt
and short-term borrowings

Contractual
cash flows
Within
1 year
1~5 years
Over
5 years
99,762
107,035
4,690
102,345
1,711,134
2,230,990
80,374
982
4,123,242
1,714,693
2,230,990
80,374
1,557,858
5,690,950
1,714,693
2,230,990
80,374
1,284,453
5,315,200
273,405
375,750
44,030
44,030
44,030
44,030
18,037
18,037
25,815
25,815
178
178
4,167,272
5,734,980
5,333,237
401,565
178
The above maturity analysis was prepared by using the earliest date which could be asked for repayment during the
maturity and the non-discounted free cash flows. In case of financial guarantee contracts, the analysis has been
prepared by allocating during the earliest period which could be asked to pledge the maximum amount.
59


(4) Management of capital risk
The objectives of the Companys capital management are to safeguard the Companys ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal
capital structure to reduce the cost of capital. As for this to be maintained, the Company uses debt ratio as indicator
of capital management. The debt to equity ratio is calculated as total liability divided by total equity.
Debt to equity ratio as of December 31, 2012 and 2011 are summarized as follows:
2012
Total liabilities
Total equity
W
W
Debt to equity ratio
2011
4,827,517
13,412,627
5,247,910
11,278,544
35.99%
46.53%
(5) Categories of financial assets and liabilities as of December 31, 2012 and 2011 are summarized as follows:
Financial assets
at fair value
through profit
or loss
Financial assets
Cash and cash equivalent
Short-term financial
instruments
Available-for-sale financial
assets
Financial liabilities
Current portion of long-term
debt and short-term
borrowings
Held-tomaturity
investments
Financial
liabilities
measured at
amortized
cost
Availablefor-sale
financial
assets
Loans
and
receivables
Derivatives
financial
instruments
Total
662,949
662,949
2,964,000
3,874,047
26,311
50,273
2,964,000
3,874,047
76,584
35,235
95,371
-
21,382
95,371
56,617
7,562,542
95,371
71,655
7,729,568
2,334,381
2,334,381
1,158,773
86,045
-
3,965
459
1,158,773
90,010
459
3,579,199
4,424
3,583,623
60


(5) Categories of financial assets and liabilities as of December 31, 2012 and 2011 are summarized as follows, continued:
Financial assets
at fair value
through profit
or loss
Financial assets
Short-term financial
instruments
Available-for-sale financial
assets
Financial liabilities
Current portion of long-term
debt and short-term
borrowings
Bonds and long-term
borrowings
Held-tomaturity
investments
Financial
liabilities
measured at
amortized
cost
Availablefor-sale
financial
assets
Loans
and
receivables
Derivatives
financial
instruments
Total
1,186,260
1,186,260
1,210,000
3,921,600
16,467
8,054
1,210,000
3,921,600
24,521
70,346
86,757
-
2,636
86,757
72,982
6,404,673
86,757
10,690
6,502,120
2,230,990
2,230,990
1,711,134
81,356
18,037
1,711,134
99,393
99,762
-
25,993
99,762
25,993
4,123,242
44,030
4,167,272
61


(6) Fair values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, as of December 31, 2012 and 2011 are as follows:
2012
Carrying
amount
Assets carried at fair value
Carrying
amount
Fair
value
95,371
71,655
167,026
95,371
71,655
167,026
86,757
10,690
97,447
86,757
10,690
97,447
662,949
2,964,000
3,874,047
26,311
35,235
7,562,542
662,949
2,964,000
3,874,047
26,311
35,235
7,562,542
1,186,260
1,210,000
3,921,600
16,467
70,346
6,404,673
1,186,260
1,210,000
3,921,600
16,467
70,346
6,404,673
7,729,568
7,729,568
6,502,120
6,502,120
4,424
4,424
4,424
4,424
44,030
44,030
44,030
44,030
99,762
99,762
1,158,773
2,334,381
86,045
3,579,199
1,158,773
2,334,381
86,045
3,579,199
1,711,134
2,230,990
81,356
4,123,242
1,711,134
2,230,990
81,356
4,123,242
3,583,623
3,583,623
4,167,272
4,167,272
Assets carried at amortized cost

Liabilities carried at fair value

2011
Fair
value
Liabilities carried at amortized cost

Current portion of long-term debt and
short-term borrowings
62


(6) Fair values, continued
Fair value measurement classified by fair value hierarchy as of December 31, 2012 and 2011 are summarized as
follows:
Level 1
December 31, 2012

December 31, 2011

Level 2
Level 3
Total
76,909
-
71,655
(4,424)
76,909
71,655
(4,424)
76,909
67,231
144,140
68,401
-
10,690
(44,030)
68,401
10,690
(44,030)
68,401
(33,340)
35,061
(*) There had been no significant transfers between levels 1, 2, and 3.

Financial instruments which are measured at the cost because the fair value is not available as of December 31, 2012
and 2011 are summarized as follows:
2012
2011
18,462
18,356
Financial assets and liabilities carried at fair value by each valuation method are defined as follows:
- 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 or in indirectly
- Level 3: input for the asset or liability that are not based on observable market data
The Company measured the fair value of financial instruments as follows:
The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the
reporting period. The quoted market price used for financial assets held by the Company is the closing bid price.
These instruments are included in level 1. Instruments included in level 1 comprise primarily listed equity
investments classified as available-for-sale financial assets.
The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. These valuation techniques maximize the use of observable market data where it is available and rely
as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
63


(6) Fair values, continued
The Company measured the fair value of financial instruments as follows, continued:
Specific valuation techniques used to value financial instruments include:
- Quoted market prices or dealer quotes for similar instruments.
- The fair value of forward foreign exchange contracts is determined using forward exchange rates at the end of
the reporting period, with the resulting value discounted back to present value.
Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial
instruments. As for trade and other receivables, the book value approximates a reasonable estimate of fair value.
There are no significant changes in the business environment and economic environment, affected the fair value of
the Company's financial assets and financial liabilities for the year ended December 31, 2012.
37. Date of Authorization for Issue

The separate financial statements were authorized for issue by the Board of Directors on January 31, 2013 which
will be submitted for approval to the general meeting of stockholders to be held on March 15, 2013.
64
Independent Auditors Review Report on Internal Accounting Control System

English Translation of a Report Originally Issued in Korean
To the President of
We have reviewed the accompanying Report on the Operations of Internal Accounting Control System (IACS) of
HYUNDAI MOBIS Co., Ltd. (the Company) as of December 31, 2012. The Company's management is responsible for
designing and maintaining effective IACS and for its assessment of the effectiveness of IACS.
review management's assessment and issue a report based on our review.
Our responsibility is to
In the accompanying report of managements
assessment of IACS, the Companys management stated: Based on the assessment on the operations of the IACS, the
Companys IACS has been effectively designed and is operating as of December 31, 2012, in all material respects, in
accordance with the IACS Framework issued by the Internal Accounting Control System Operation Committee.
We conducted our review in accordance with IACS Review Standards, issued by the Korean Institute of Certified Public
Accountants. Those Standards require that we plan and perform the review to obtain assurance of a level less than that of
an audit as to whether Report on the Operations of Internal Accounting Control System is free of material misstatement.
Our review consists principally of obtaining an understanding of the Companys IACS, inquiries of company personnel
about the details of the report, and tracing to related documents we considered necessary in the circumstances.
not performed an audit and, accordingly, we do not express an audit opinion.
We have
A company's IACS is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of separate financial statements for external purposes in accordance with K-IFRS. Because of its
inherent limitations, however, IACS may not prevent or detect misstatements.
Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on our review, nothing has come to our attention that Report on the Operations of Internal Accounting Control
System as of December 31, 2012 is not prepared in all material respects, in accordance with IACS Framework issued by
the Internal Accounting Control System Operation Committee.
This report applies to the Companys IACS in existence as of December 31, 2012.
IACS subsequent to December 31, 2012.
We did not review the Companys
This report has been prepared for Korean regulatory purposes, pursuant to the
External Audit Law, and may not be appropriate for other purposes or for other users.
February 22, 2013

Notice to Readers
This report is annexed in relation to the audit of the separate financial statements as of December 31, 2012 and the review
of internal accounting control system pursuant to Article 2-3 of the Act on External Audit Corporations of the Republic of
Korea.
65
Report on the Operations of Internal Accounting Control System

English Translation of a Report Originally Issued in Korean
To the Board of Directors and Audit Committee of
1. I, as the Internal Accounting Control Officer (IACO) of HYUNDAI MOBIS Co., Ltd. (the Company), have
assessed the status of the design and operations of the Companys Internal Accounting Control System (IACS) as of
December 31, 2012 and the Companys management including IACO is responsible for designing and operating IACS.
2. Major examinations on the operations of the Companys IACS includes :
1) Report on results of the execution of IACS
2) In connection with verification of financial statements as of and for the year ended December 31, 2012, perform self
assessment test.
3. Results of the examination
1) The major examinations above properly encompassed all subjects that the Company has to include or reflect in
accordance with IACS standards of the Acts on External Audit of Corporations in the Republic of Korea and public
release certification system management to ensure the accuracy and propriety of public announcement.
2) Based on the assessment on the design and operations of the IACS, the Companys IACS has been effectively
designed and is operating effectively as of December 31, 2012, in all material respects, in accordance with the IACS
Framework issued by the Internal Accounting Control System Operation Committee.
January 31, 2013
Choi, Byung Chul, Internal Accounting Control Officer

Jeon, Ho Seok, Chief Executive Officer
66

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HYUNDAI MOBIS CO., LTD.

Separate Financial Statements

Separate Statements of Financial Position

Separate Statements of Income

Separate Statements of Comprehensive Income

Separate Statements of Changes in Equity

Separate Statements of Cash Flows

Notes to the Separate Financial Statements

Independent Auditors Review Report on Internal Accounting Control System

Report on the Operations of Internal Accounting Control System

Independent Auditors Report

The Board of Directors and Stockholders

KPMG Samjong Accounting Corp.

HYUNDAI MOBIS CO., LTD.

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

(In millions of won)

Total liabilities and equity

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

Selling, general and administrative expenses

Income tax expense

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

(In millions of won)

Profit for the year

Total comprehensive income for the year

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

(In millions of won)

Balance at January 1, 2011

Comprehensive income (net of tax):

Capital surplus Treasury stock

Transactions with owners of the Company, recognized directly in equity:

Balance at January 1, 2012

Comprehensive income (net of tax):

Transactions with owners of the Company, recognized directly in equity:

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

(In millions of won)

Cash flows from operating activities

Cash flows from investing activities

Cash and cash equivalents at the end of year

See accompanying notes to the separate financial statements.

HYUNDAI MOBIS CO., LTD.

1. General Description of the Company

HYUNDAI MOBIS CO., LTD.

2. Basis of Preparation, Continued

(In millions of won)

Operating profit before adoption of the amendment

Operating profit after adoption of the amendment

HYUNDAI MOBIS CO., LTD.

3. Significant Accounting Policies

Such reclassification has no

(1) Investments in subsidiaries and associates

HYUNDAI MOBIS CO., LTD.

3. Significant Accounting Policies, Continued

HYUNDAI MOBIS CO., LTD.

3. Significant Accounting Policies, Continued

HYUNDAI MOBIS CO., LTD.

3. Significant Accounting Policies, Continued

HYUNDAI MOBIS CO., LTD.

3. Significant Accounting Policies, Continued

Buildings and structures