Annual Report: Hyundai Capital / Hyundai Card / Hyundai Commercial 2010

Beyond Boundariesfor Sustainable GrowthHyundai Capital, Hyundai Card & Hyundai Commercial

Annual Report 2010

Hyundai Capital, Hyundai Card and Hyundai Commercial: Going beyond the boundaries to achieve sustainable growth

Hyundai Capital, Hyundai Card and Hyundai Commercial’s growth has been based on the excellence of our differentiated services and our distinctive corporate culture. Our motto for this year is “Beyond Boundaries.” This refers to our goal of becoming global financial companies whose values are trusted and respected by customers both in and outside of Korea, surpassing the boundaries in the financial industry and among countries while adhering to a clear and consistent vision.

In 2011, we will redefine the roles of the financial business and achieve dramatic new outcomes again. We will do this by deploying customer-oriented, efficient solutions and innovative methods in all areas of customer service, marketing, risk management, and overseas operations.

Beyond Boundariesfor Sustainable Growth

Beyond Boundaries

04 Financial Highlights & Statements10 CEO’s Message18 Highlights26 2010 At a Glance

Overview

30 Hyundai Capital Products34 Hyundai Card Products38 Hyundai Commercial Products42 Hyundai Capital Milestones44 Hyundai Card Milestones46 Hyundai Commercial Milestones48 Global Presence50 Directors & Executives52 Independent Auditor’s Report

Contents

4 5

Hyundai Capital, Hyundai Card &Hyundai Commercial

Annual Report 2010

(Unit: In billions of KRW)

2010 2009 2008 2007 2006

Operating Revenue 2,990 2,989 4,330 2,245 2,209

Operating Income 667 541 505 476 383

Net Income 512 411 377 333 417

Total Assets 17,931 15,854 16,068 13,771 12,069

Total Shareholders’ Equity 2,203 2,156 1,650 1,414 1,178

Hyundai Capital2010 Operating Income

(Unit: In thousands of KRW)

Balance Sheets 2010 (18th) 2009 (17th)

Assets 17,931,199,194 15,854,425,786

Cash and Bank Deposits 1,064,798,728 773,757,387

Securities 70,707,832 56,636,972

Loans 7,548,313,689 6,826,569,128

Installment Financial Assets 3,231,825,277 2,610,205,217

Leased Assets 3,065,500,390 2,656,538,470

New Technology Financial Assets - -

Credit Securitized Assets 1,983,985,013 1,319,673,269

Tangible Assets 232,361,373 226,934,783

Other Assets 733,706,891 1,384,110,561

Liabilities 15,727,685,523 13,698,695,872

Borrowings 14,104,329,570 12,402,217,193

Other Liabilities 1,623,355,953 1,296,478,679

Shareholders’ Equity 2,203,513,670 2,155,729,914

Capital Stock 496,537,175 496,537,175

Capital Surplus 407,539,067 407,539,067

Capital Adjustment - -

Other Accumulated Comprehensive Income and Losses -28,817,999 27,785,730

Retained Earnings 1,328,255,428 1,223,867,942


Income Statements 2010 (18th) 2009 (17th)

Operating Revenue 2,989,835,469 2,989,268,715

Operating Expenses 2,322,775,322 2,448,256,349

Operating Income 667,060,147 541,012,366

Non-Operating Revenue 35,518,007 21,785,888

Non-Operating Expenses 23,199,083 24,598,393

Income Before Income Tax Expenses 679,379,072 538,199,861

Income Tax Expenses 167,833,709 126,969,112

Net Income 511,545,363 411,230,750

Financial Highlights & Statements ’10

’07

’08

’09

’06383

541

505

476

667

6 7


Annual Report 2010


Balance Sheets 2010 (16th) 2009 (15th)

Assets 9,915,767,764 7,291,248,896

Cash and Bank Deposits 742,671,859 479,559,001

Securities 2,143,234 82,903,992

Loans 985,000 0

Card Assets 8,473,299,494 6,248,751,386

Tangible Assets 152,515,808 135,419,050

Other Assets 544,152,368 344,615,467

Liabilities 8,263,679,013 5,808,000,005

Borrowings 6,683,842,693 4,524,145,735

Other Liabilities 1,579,836,320 1,283,854,270

Shareholders’ Equity 1,652,088,750 1,483,248,891

Capital Stock 802,326,430 802,326,430

Capital Surplus 57,704,444 57,704,435

Capital Adjustment 0 -20

Other Accumulated Comprehensive Income and Losses -748,973 46,885,772

Retained Earnings 792,806,850 576,332,274


Income Statements 2010 (16th) 2009 (15th)

Operating Revenue 2,275,741,542 1,840,843,429

Operating Expenses 1,886,555,975 1,554,553,048



Non-Operating Expenses 21,188,111 15,847,424



Net Income 352,870,067 212,819,047

Financial Highlights & Statements


2010 2009 2008 2007 2006

Operating Revenue 2,276 1,841 1,594 1,121 1,110

*Operating Income 389 286 258 73 300

Net Income 353 213 202 234 281

Total Assets 9,916 7,291 5,671 4,645 3,383

Total Shareholders’ Equity 1,652 1,483 1,234 1,123 831

* Including KRW 190.5 billion from the sale of Daewoo E&C in 2006 and KRW 101.1 billion from the sale of Daewoo International in 2010. Excluding provision for the unused

141.7 billion won credit line in 2007. (Excluding provision for the unused 141.8 billion won credit line in 2007)

Hyundai Card2010 Operating Income

’06300

’0773

’08258

’09286

’10

389

8 9


Annual Report 2010

Financial Highlights & Statements

2010 Operating Income

Hyundai Commercial

’0710

’0814

’0928

’10

67


2010 2009 2008 2007

Operating Revenue 236 163 136 58

Operating Income 67 28 14 10

Net Income 65 28 14 8

Total Assets 2,534 1,629 1,127 861

Total Shareholders’ Equity 175 109 74 70


Balance Sheets 2010 (4th) 2009 (3rd)

Assets 2,534,174,650 1,628,843,966

Cash and Bank Deposits 99,731,978 26,822,146

Securities 144,215,195 124,097,416

Loans 1,609,845,001 871,906,483

Installment Financial Assets 427,846,646 495,955,424

Leased Assets 39,794,453 45,825,617

New Technology Financial Assets - -

Credit Securitized Assets 126,362,421 -

Tangible Assets 1,888,330 1,752,635

Other Assets 84,490,627 62,484,245

Liabilities 2,359,395,222 1,519,996,760

Borrowings 2,279,111,480 1,486,999,361

Other Liabilities 80,283,742 32,997,399

Shareholders’ Equity 174,779,429 108,847,206

Capital Stock 100,000,000 100,000,000

Capital Surplus - -

Capital Adjustment - -663,810

Other Accumulated Comprehensive Income and Losses -759,373 -1,858,093

Retained Earnings 75,538,802 11,369,109


Income Statements 2010 (4th) 2009 (3rd)

Operating Revenue 236,297,922 163,017,654

Operating Expenses 169,191,275 135,399,801



Non-Operating Expenses 570,999 400,238



Net Income 64,833,503 28,010,959

10 11


Annual Report 2010

Excellent asset stability, outstandingfinancial results 2010 was a year in which the government stimulus policy slowed down in the wake of 2009’s economic uncertainties, and the age of low interest rates came to an end. Our competitors, who were less prepared than we were to cope with crises, began to position themselves for aggressive management activities in the second half of the year, in reaction to the central government’s stimulus measures. Many financial regulations were strengthened, and the country’s ratio of household debt to consumer finance rose to reach the highest level in the world.

Despite these problems, we achieved our best-ever financial results while maintaining the industry’s highest level of asset quality. As of the end of 2010, Hyundai Capital, Hyundai Card and Hyundai Commercial posted operating income of 667.1 billion won, 389.2 billion won, and 67.1 billion won, respectively. These figures, all of which exceeded those posted the year before, proved that growth and stability are really two sides of the same coin. They also demonstrated our new and unique operating model, which we call “growth through stability.” It applies to all of our operations, including product planning and marketing, customer service, and our overall corporate culture.

Hyundai Capital ranked first in the industry in all areas of new and used car loans and leasing services, with excellent financial performance and high market shares. Hyundai Card enhanced its second-place market share position in Korea, becoming the brand which customers want to recommend most due to its differentiated products and services. Hyundai Commercial boasted the largest share of the financing market for industrial materials.

In specific terms, Hyundai Capital’s operating income and net income surged by 23.3% and 24.4%, respectively, from the previous year. In addition, the company maintained its high level of return on assets (ROA). These accomplishments were due to its profitability-oriented strategies and a significant decrease in its bad debt expenses in the wake of the country’s ongoing economic recovery. We also maintained a stable revenue structure, with car loans making up 80% of our asset portfolio, while laying the groundwork for even more growth in the future by advancing into a wide variety of prime financial products, including leasing, personal loans, and mortgages. Most of our collateral for loans is automobiles and real estate, with personal loans accounting for a mere 8.7% of the total.

Hyundai Card enjoyed the industry’s highest monthly credit card usage, averaging 740,000 won per cardholder. This was due to its excellent asset qualities and a high level of customer loyalty. In addition, our VVIP card, “the Black,” which targets the top 0.05% of the country’s income earners and is limited to only 9,999 cardholders, led the Korean credit card market, while using liquid metal as its material, a first for the industry.

In 2010, Hyundai Capital, Hyundai Card and Hyundai Commercial achieved industry-leading performances while demonstrating unparalleled competencies in the areas of risk management, corporate culture, and marketing.

We have redefined the meaning of customer service by going beyond the generally prescribed identity of financial companies and realized efficiencies through business crossovers. In addition, we achieved growth by establishing and disseminating our corporate culture,a key driver behind any and all corporate growth.

We enjoyed stable earnings again this year. This was done by putting exhaustive risk management processes in place, by deploying our new corporate culture, and by carrying out innovative and creative marketing campaigns. In 2011, we will continue to grow by realigning our organizational structures and enhancing our overseas operations.

Beyond Boundaries

679

538

475

Hyundai Capital

+23.3%2010 operating income YoY (%)

Stable Profit Trend

’10’09

’08

Net income before income taxes (In billions of won)

Hyundai Card


’10’09

’08

Net income before income taxes (In billions of won )

Including 101 billion won from the sale of Daewoo International in 2010

389

295

272

Hyundai Commercial


’10’09

’08

Net income before income taxes (In billions of won )

84

32

14

CEO’s Message

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Annual Report 2010

12 13


Annual Report 2010

Hyundai Capital

1.6%2010 Over 30 Days Delinquency (%)

Excellent Asset Quality

’10’09

’08

’07

’06

Over 30 Days Delinquency (%)

1.61.8

2.3

1.6

1.7

Hyundai Card



’10’09

’08

’07

’06

0.40.3

0.7

0.4

2.2

Hyundai Capital

18,7212010 Total Financial Assets (In billions of won)

Sound Asset Portfolio

Asset Portfolio

Car Business Non-Car Business

16,030

16,480

13,472

15,130

18,72181.4% 18.6%

81.1% 18.9%

79.5% 20.5%

82.3% 17.7%

87.1% 12.9%

’10’09

’08

’07

’06

9,186

3,508

7,136

5,616

4,507

Hyundai Card


Asset Portfolio

65.7% 34.3%

74.2% 25.8%

72.9% 27.1%

74.1% 25.8%

77.6% 22.4%

Credit Purchases Financing Products

’10’09

’08

’07

’06A leader in corporate culture Hyundai Capital, Hyundai Card and Hyundai Commercial are creating rules for a new type of corporate culture, whereas existing ones have merely remained at encouraging job performances, arousing a sense of community, and providing employee benefits.

The “PRIDE,” a core value of our corporate culture, denotes our pride as members of organizations that are growing into global financial players.

We hire high-caliber human resources in various areas, and have the nation’s largest number of employees with experience outside of the financial sector. We also take pride in our in-house “Career Market,” an internal posting system where our employees apply for a job or literally put up themselves for sale. A full 70% of our personnel shifts are made through this innovative system.

Future-oriented customersatisfaction services Hyundai Capital, Hyundai Card and Hyundai Commercial proclaimed 2009 “Customer Solutions (CS) Year,” with an emphasis on maximizing customer solutions. The term “customer solutions” refers to proactive and preemptive CS strategies that reduce the likelihood of complaints by responding to our customers’ voices promptly and putting innovative services in place in advance.

In order for these CS strategies to be implemented throughout the company, our first priority was to efficiently share “problems,” namely customer complaints. To this end, we installed a “Wailing Wall” inside The Box last year. It features “no-holds-barred” criticisms registered on our call centers and websites regarding our services and operations.

We have also operated a unique and innovative “CS portal.” It provides information on the current level of customer complaints and satisfaction in the

We are also striving to build a more efficient corporate culture, including expedited decision-making and actions and more open and easier communications.

Our decision-making system is now so streamlined that our CEOs can approve proposals submitted by working level employees in about seven hours. At our executives’ meetings, there are only three rules: the topic must have a company-wide impact, everyone should speak, and the decision should be made at that meeting.

We are further improving our corporate culture through a “360-degree corporate culture assessment project” while revamping our entire organizational structure to the most efficient level. We are also committed to disseminating our corporate culture overseas by operating a human resources exchange program in conjunction with Hyundai Capital America (HCA), which we operate on behalf of Hyundai Motor Group.

Another improvement is to make our company buildings more employee-friendly. For example, The Box, an employee cafeteria, and our auditorium were both built as employee rest spaces and open venues for enjoying cultural events, such as “Super Talk.”

Through this distinctive corporate culture, Hyundai Capital, Hyundai Card and Hyundai Commercial are maximizing the individual abilities of their employees, while winning recognition for our value from global companies and opinion leaders.

CEO’s Message

2,3331,483

1,050

822

Hyundai Commercial


Asset Portfolio

85.4% 14.6%

86.5% 13.5%

77.8% 22.2%

89.1% 10.9%

Car Business Non-Car Business

’10’09

’08

’07

Hyundai Commercial



’10’09

’08

’07

1.00.9

2.1

1.9

Hyundai Card also posted stable increases in terms of market share and number of customers. We have ranked second among Korean credit card issuers in terms of total sales volume since the second quarter of 2009, and second in the industry (including bank credit card divisions) in terms of credit purchases since 2009. Our number of cardholders exceeded 9.8 million as of the end of 2010, based on personal card usage amounts.

The issuance of the “Platinum 3” series, which added practicality to its platinum services, exceeded 24,000 cardholders only four weeks after its launch in November 2010, with monthly spending per cardholder averaging 2.5 million won.

Hyundai Commercial’s operating income and net income ballooned by 243.1% and 231.4%, respectively, over the year, thanks to careful asset management based on its auto financing portfolio.

Auto financing holdings made up 85% of its total assets, due to a business structure that is markedly different from that of other companies that specialize in the credit financing business. It maintained a healthy portfolio of financial assets, with corporate financing and PF and similar assets accounting for less than 20% and 10%, respectively, of the total. This is due to its policy of strict and strategic asset management.

Overall, we achieved our best-ever results in 2010. This was based on our preemptive customer services, a creative corporate culture, and preparation for global growth. In addition, we enhanced our corporate social responsobilities through our “Talent Donation” social contributions activities, and continued extending boundaries within the industry.

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Annual Report 2010

CEO’s Message

118.1%

153.2%

151.6%

161.5%

150.4%

(In billions of KRW)

Hyundai Capital

118.1%Actual 2010 Reserve/Regulatory (FSS) Guideline (%)

Conservative Provisioning Policy

FSS Guideline vs. Actual Reserve

’10’09

’08

’07

’06

401

282

288

306

246

427

442

461

398

478

89

52

94

114

127.7%

123.9%

143.3%

200.4%

178.1%


Hyundai Card



’10’09

’08

’07

’06

148 189 142

135

104

158

Innovative Marketing Hyundai Capital, Hyundai Card and Hyundai Commercial are implementing innovative marketing ideas in a wide variety of areas, including the business realm and cultural activities, based on creativity and a spirit of challenge.

In terms of business, we analyzed what sort of products our customers would find most useful.

As a result, we launched customer-centered, signature products. These include “the Black,” Korea’s very first VVIP credit card; “MY BUSINESS,” an integrated solution for small businesses that provides business support as well as loans; and the Platinum 3 series credit cards, which were only introduced after we

Global growth with a unique model Improving Hyundai Capital’s global business capabilities has also become one of our must-dos, since Hyundai Motor and Kia Motors are both faring well in the world market. Hyundai Capital is seeking more strategic and profitable overseas business opportunities, breaking away from conventional methods of advancing internationally. We are taking a variety of steps to ensure that we will be as successful overseas as we are at home within five years.

We have been supporting the management of Hyundai Capital America in the US since 2007. Based on our solid network, the company achieved impressive growth, including doubling the size of its assets. Unlike other Korean financial companies which focus heavily on servicing Korean customers living abroad, we provide services to local citizens.

We also strengthened our international network by successfully advancing into Europe in 2009. This was done by enhancing our relationship with Santander, a member of the leading consumer finance house in Europe and a leader in the field of auto financing.

In China, the world’s biggest automobile market, we are in the process of obtaining the government’s approval for the establishment of a joint venture with our local business partner. In addition, we opened an office in India in 2010,

had closely studied how our customers actually use their cards. Besides being very successful, the process of their development from concept to delivery was judged to be both innovative and ground-breaking.

We also provide our customers with opportunities to enjoy rest and relaxation through new and meaningful cultural activities in diverse genres, including concerts, exhibitions, and sports events.

For example, we have hosted “Super Match,” a competition featuring sports superstars; “Super Talk,” in which Korean and overseas celebrities share their thoughts on a variety of topics; and “Super Concert,” with performances by world-famous artists. These activities are part of our efforts to genuinely connect with our customers.

Since the development of our own typography in 2004, we have deployed integrated branding strategies in which our brands market themselves. We are consistently reflecting our corporate identity (CI) at our cultural events and advertisements and other activities.

The successful creation of these unrivalled brands has allowed Hyundai Capital, Hyundai Card and Hyundai Commercial to deploy a branding philosophy that genuinely communes with their customers and offers them distinctive experiences.

5

10

10

168.0%

222.8%

179.7%

286.0%


Hyundai Commercial



’10’09

’08

’07

16 26 22

17

15

form of weather charts: fair, partly cloudy, cloudy, rainy, and stormy. In addition, our management teams are also involved in calling customers to deal with their problems and resolve their grievances. As a result of these efforts, we were able to make three thousand improvements to our systems during the year.

After bringing up the question on “Customer Solution” in 2009 and putting these measures in place in 2010, we will spend 2011 verifying them. We will see how much our customer services and systems have improved, and begin to align our solutions preemptively. Preemptive solutions are our pledge that we will be more adept at looking at our services from the viewpoints of our customers and reflecting them when we introduce new products.

One result of these efforts was the launch of our new Platinum card series in 2010. We have received very favorable responses from our customers to these products, all of which were developed through exhaustive CS pre-screening and testing, instead of releasing products first and then modifying services based on customer responses. Other products that we have introduced include “MY BUSINESS,” which combines loans with comprehensive business supports. This widened range of products and enhanced customer communications shows our commitment to developing more advanced customer solutions.

We also increased the number of our Finance Shops to twenty-three and plan to add twenty-one more by the end of 2011. These are new-concept spaces that allow us to deliver our financial services in a more personal and comfortable manner. Customers can also request advisory services through its website, with an advisor contacting them within a maximum of four hours. In addition, various cultural and educational programs are carried out in these venues, winning favorable responses from our customers.

Although anyone can imitate our marketing campaigns, designs, and advertisements, the competitiveness of our CS and operations cannot be replicated. These differentiated CS strategies will ensure that Hyundai Capital, Hyundai Card and Hyundai Commercial enjoy stronger competitiveness in 2011.

Hyundai Card2010 Funding Portfolio

ABS7.2%

Loans10.1%

CP9.1%

Bonds73.6%

•��Maintaining�the�ABS�and�CP�portion�to�within�20% and 10%, respectively

•��Long-term�borrowings:�56.5%•��Overseas�borrowings:�6.4%

Hyundai Capital2010 Funding Portfolio

Well-Diversified Funding Portfolio


•��Long-term�borrowings:�63.5%•��Overseas�borrowings:�36.4%

ABS16.5%

Loans7.4%

CP8.5% Bonds

67.5%

Hyundai Commercial2010 Funding Portfolio

ABS8.1%

Loans18.2%

CP13.0%

Bonds60.6%


•��Long-term�borrowings:�60%

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Annual Report 2010

CEO’s Message

Citizenship Hyundai Capital, Hyundai Card and Hyundai Commercial support communities through a program called “Talent Donations.” We utilize our strengths in marketing and financial services to help the underprivileged and the society at large.

For example, the “Hyundai Motor Group Smile Microcredit Foundation” helps the financially underprivileged to stand on their own through our “Smile Learning Center,” “Smile Supporters,” and its “Realize Dream” project. In addition, the foundation extends loans to North Korean defectors to assist them with business startups, while operating training programs through an agreement with the Ministry of Unification.

The “Art Shelter,” a new public transit center at Seoul Station that we donated last year, received an International Design Excellence Award (IDEA), an iF design award, and a reddot design award. Combining art and technology, it adds practicality and aesthetic values to this public facility.

Hyundai Card sends Korean art majors to intern at New York’s Museum of Modern Art in the spring, summer, and autumn, helping them gain valuable international experience.

Hyundai Capital, Hyundai Card and Hyundai Commercial will carry out more corporate social responsibility (CSR) activities in 2011. Instead of relying on donations, we will implement ongoing and substantial CSR activities by diversifying and systematizing our CSR areas, such as culture and the arts, finance, and services for the underprivileged--all based on the principles of “Talent Donation,” “Volunteerism,” and “Self-Support.”

Management strategies for 2011 Our strategic goals are to boost our capabilities by more than 50% and continue strengthening the consolidation of our two companies. This will be done by hiring and nurturing human resources who have a global outlook, and by basing our operating decisions on three-year plans instead of short-term outlooks

Hyundai Capital, Hyundai Card and Hyundai Commercial are both widely recognized for their leadership in the Korean financial industry. Innovations instituted by challengers (as we used to be ourselves) are self-innovations, but innovations instituted by leaders are made for the good of the industry as a whole.

We will continue to create new rules for the finance industry, and open up and lead markets with new rules. One of our new rules is “coexistence and balance.” Rigorous risk management and active marketing should go hand in hand. Hyundai Card’s credit cards will become our customers’ favorites if we enhance their brand preference and increase the number of high-quality customers by adding to our marketing expenses.

If we spend our marketing expenses effectively, it will lead to a reduction in our debt expenses, and ultimately result in overall savings.

Risk management and marketing are both aspects of growth and stability. Their inherent harmony will be evident in our products and services. The success of the Hyundai Card Premium 3 Series has been made possible by the harmony of two seemingly conflicting values: “premium” and “practical.”

Hyundai Capital, Hyundai Card and Hyundai Commercial are thinking in the long-term, deciding what kind of companies they want to be three years down the road. In our role as rule creators, we must look to a greater future, rather than concentrating on competition within the industry.

Even though we are much bigger than we used to be, we will continue to rely on the strong points that we used to grow when we were a smaller operation. We will keep growing “beyond boundaries” in all areas of the Korean finance industry, while stretching our wings to advance into the rest of the world at the same time.

Dear investors and customers:

In order to keep earning your respect and trust, the employees of Hyundai Capital, Hyundai Card and Hyundai Commercial will continue to retain and develop industry-leading services by accelerating the consolidation of the two companies--one of our primary branding strategies. We will always operate from the viewpoint of our customers, in order to become their favorite brands.

Thank you.

Ted ChungPresident & CEOHyundai Capital, Hyundai Cardand Hyundai Commercial

and plan to do the same in Brazil very soon. These steps will allow us to evolve into a truly global financial company boasting strong local partnerships.

We are also dedicated to nurturing human resources (HR) for multilateral overseas expansion, mainly by enhancing their global capabilities. This includes an exchange program through which our overseas employees at Hyundai Capital America come to work in Korea. Going forward, we will use Hyundai Capital America as an “advance post” for our overseas expansion activities and an HR training center by sending employees in all the operating areas at our head office there.

Our flexible approach to local business conditions and the excellence of our human resources will work in tandem to add to our value in world markets, while strengthening our profile as a truly global financial company with a unique and highly innovative corporate culture.

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Annual Report 2010

01Highlights

Platinum3 Series MY BUSINESS

We provide preemptive customer solutions that are of real help, going well beyond the general concept of customer satisfaction that only offers assistance upon demand.

One way that we listen to the voices of our customers is by installing a “Wailing Wall” on which customer complaints are shown without filtering. In addition, we operate a “CS portal” that records customer problems and requests in real time. We anticipate customer needs in advance and apply the results to all the products we are developing. Two examples are our landmark “MY BUSINESS” product, which offers loans along with business supports, and the Platinum 3 credit card series, which was only developed after we had closely analyzed customer usage patterns.

These quick and efficient solutions offer our customers new experiences and differentiated services based on our insights into their wants and needs.

Solution Customer

Providing one-step-ahead solutions for customer needs

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Annual Report 2010

02Highlights

Super Concert Super Match

Hyundai Capital, Hyundai Card and Hyundai Commercial are redefining the limits of financial businesses.

Our unique way of thinking and our innovative ideas result in products and services that other financial companies have never thought of. For example, the “Super Talk” meetings that we began in 2010 act as venues in which both Korean and international opinion leaders from a wide range of fields can share their thoughts and knowledge. In addition, we host a wide array of cultural and artistic programs that are extremely popular with our customers. They include “Super Match,” in which superstars from the sports world compete against each other, and “Super Concert” featuring world-renowned artists. In addition to creating products that cannot be equaled, Hyundai Capital, Hyundai Card and Hyundai Commercial are always there for their customers. This is based on our philosophy of truly communicating with our customers and creating new markets and services.

Marketing Culture

Redefining the financial business beyond boundaries

22 23


Annual Report 2010

03Highlights

2010 Global Site Visit Hyundai Capital America Office Building

Hyundai Capital, Hyundai Card and Hyundai Commercial have established a more efficient corporate culture based on a philosophy of open communications. Now we are concentrating on enhancing our global capabilities to ensure sustainable growth.

Besides hiring and fostering the development of human resources with global outlooks, we are continually realigning and improving the systems that are necessary for our future organizational growth. In addition, we are enhancing our world-wide network. This includes forming alliances with Santander Consumer Finance, the leading consumer finance house in Europe, and strengthening our partnership with GE Capital. Hyundai Capital America, our global business outpost that uses local human resources targeting local residents, has set new standards for overseas expansion based on our strong network.

We are committed to developing industry-leading overseas operations throughout the world, including Europe and China.This goal will be achieved through optimizing their operations and by hiring and training internationally-oriented human resources.

Growth Global

Advancing into the world with global capabilities

24 25


Annual Report 2010

04Highlights

Internship at MoMA in New York First “Realize Dream” Store

Hyundai Capital, Hyundai Card and Hyundai Commercial are changing the meaning of corporate social responsibilities.

For example, the “Hyundai Motor Group Smile Microcredit Bank” helps the financially underprivileged become self-supporting through its “Smile Learning Center” and the “Realize Dream” project, which extends beyond simple financial loans. The “Art Shelter,” a stylish bus shelter in front of Seoul Station that we donated last year, received an International Design Excellence Award (IDEA), an iF design award, and a reddot design award. Combining art and technology, it creates new values by deploying a practical design to beautify a public facility. We also offer opportunities and hope to young Korean fine arts students by supporting internships for them at the Museum of Modern Art (MoMA) in New York.

In 2011, Hyundai Capital, Hyundai Card and Hyundai Commercial will carry out its corporate social contribution activities in a more proactive and systematic manner through a corporate social responsibility (CSR) organization.

Broadening the meaning of social contributions through “Talent Donation”

Citizenship

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Annual Report 2010

2010 At a Glance

January

Fitch Ratings raises Hyundai Card’s credit rating outlookFitch Ratings, a well-known international credit ratings agency, raised Hyundai Card’s credit rating from “BBB (Stable)” to “BBB (Positive).”

Publishes “Zagat Seoul Restaurants 2010”Published a guidebook on leading restaurants in Seoul in cooperation with Zagat, a world-wide provider of guides for hotels, nightlife, shopping, zoos, music, movies, theater, golf, and airlines.

Hosts Hyundai Card Super Concert 07 - Green Day Hosted the first concert in Korea by Green Day, a Grammy Award-winning rock trio from the US.

August

Hosts “Hyundai Card Super Concert 11 - Stevie Wonder”Hosted Hyundai Card’s eleventh Super Concert. The featured artist was Stevie Wonder, an American musical legend

Enters into partnership with The Museum of Modern Art (MoMA)Concluded a partnership agreement with MoMA, a cradle of modern art. It involved internships by Korean arts students and exchanges of exhibitions and curators.

“Art Shelter” wins three world-leading design awardsThe “Art Shelter,” a stylish bus shelter at Seoul Station that we donated to the city of Seoul, won the world’s top three design awards from the International Design Excellence Awards (IDEA), iF, and reddot.

December

Opens “MY BUSINESS Zone”Opened “MY BUSINESS Zone,” an offline counseling center for self-employed businesspeople.

Korea’s top 3 credit rating agencies upgrade Hyundai Commercial’s credit rating Hyundai Commercial’s credit rating was raised to “AA- (Stable)” from “A+ (Positive)” by NICE Investors Service, Korea Ratings, and Korea Investors Service.

February

Establishes Hyundai Capital Germany Established a joint venture in Germany by entering into a strategic alliance with Santander Consumer Finance. One goal of this move was to forward the company’s advance into Europe. Another was to provide auto-financing services for Kia Motors customers in Germany,

Hosts Hyundai Card Super Concert 08 - Whitney HustonHosted a concert by the legendary pop diva,Whitney Huston

March

Implements “Customer Grievances Settlements by Management Program”Began operating a CS program in which management helps to settle customer grievances. This is just one example of our commitment to customer-first management, taking the initiative and approaching customers first.

Opens Lounge at Incheon AirportOpened a lounge for Hyundai Card customers to provide them with enhanced travel services.

April

Opens the “Smile Learning Center” at Hyundai Motor Group Smile Microcredit BankThe goal of the Smile Learning Center is to offer the financially underprivileged advice on business start-ups and other ways of empowering themselves. This is done through lectures and consulting.

Launches Hyundai Card smartphone appsLaunched a Super Concert application and a Hyundai Card application. They can be used to confirm payments, approved amounts, the usage of points, and others.

Publishes “Seoul: A Monocle City Survey”Published “Seoul: A Monocle City Survey,” covering the city’s design, fashion, food, tourism, and cultural amenities. Created in collaboration with Monocle, an influential U.K.-based lifestyle magazine.

June

Number of lease and rental vehicles exceeds 100,000The number of Hyundai Capital’s lease and rental vehicles exceeded 100,000, a first for the industry.

Hosts “Hyundai Card Super Match 10 - Medalist on Ice”A gala show featuring figure skating medal winners from the Vancouver Winter Olympics, including Evan Lysacek, Evgeni Plushenko, and Asada Mao.

May

Issues 125 billion won worth of Malaysian ringgit bondsIssued 125 billion won worth of Malaysian ringgit bonds following upgrades in credit ratings by a number of overseas agencies.

Hosts “Hyundai Capital Invitational 2010: BBC Symphony Orchestra”Hosted the BBC Symphony Orchestra’s rendition of the BBC Proms.

Launched voice recognition automatic response system (ARS) serviceLaunched Korea’s first-ever ARS voice recognition service. This refers to a system that recognizes customers’ voices and links them to the service(s) they want to use.

July

Named one of the best companies to work for in KoreaNamed one of the ten best companies to work for in Korea. Also ranked first in the “card and capital” category in the K-Great Work-Place Index (GWPI) survey conducted by Korea Management Association Consulting (KMAC)

Launches MY BUSINESS Franchise LoansLaunched “MY BUSINESS Franchise Loans” for Hyundai Capital and Hyundai Card franchisees, offering them 10% lower annual interest rates than those granted for general business funds.

JCR and RAM adjust credit ratings and business outlooks upwardCredit ratings were upgraded to “A (Stable)” from “A- (Stable)” by JCR, Japan’s largest credit rating agency, and to “AA1 (Positive)” from “AA1 (Stable)” by RAM, Malaysia’s leading credit rating agency.

July

Launches Direct Loan personal loansLaunched Direct Loan, available by phone or online without bothersome delays.

Supports business startups by North Korean defectorsThe Hyundai Motor Group’s Smile Microcredit Bank and the Korean Ministry of Unification provided loans and training programs to support business startups by North Korean defectors.

Hosts “Hyundai Card Super Concert 10 - Usher”Hosted Hyundai Card’s tenth Super Concert featuring Usher, an American R&B star.

Launches Network Loan by Hyundai Commercial Launched “Network Loan” that lends money for purchasing components to business partners of Hyundai Motor and Kia Motors.

September

Hosts “Hyundai Capital Invitational 2010”Hosted a Korea-Japan professional golf competition, participated in by leading professional golfers from both nations.

October

Opens Hyundai Motor Group Smile Microcredit Bank’s first “Realize Dream” storeThe Hyundai Motor Group Smile Microcredit Bank operates a “Realize Dream” project along with its “Smile Learning Center” to help small businesspeople support themselves. In October, the center opened the project’s first store, “Sunlight Farm,” a fruit store in Hongje-dong, Seoul,following the store’s renovation and management consulting.

Launches MY BUSINESS secured loans for commercial leasesLaunched “MY BUSINESS Secured Loans for Commercial Leases,” enabling customers to access loans for business startups and operating funds using their apartment or house lease deposits as collateral. This was a first for the industry.

Launches “MY COMPANY” cardLaunched “MY COMPANY” corporate card, offering holders a wide range of custom-tailored benefits.

Hosts “Super Talk 01 -Innovations in Art”Hosted “Super Talk,” a new-type talk program with “Innovation in Art” as its topic. The participants included Glenn D. Lowry (the Director of MoMA), Barry Bergdoll (the Chief Curator of Architecture and Design at MoMA), photographer Kim Jung Man, pianist Ji Yong, and film director Lim Sang Soo.

Hosts “Hyundai Card Super Concert 12 - Itzhak Perlman”Hosted a recital by world-renownedviolinist Itzhak Perlman.

Hosts Hyundai Card Super Match 11 -Novak Djokovic vs. Andy RoddickHosted a match between tennis superstars Novak Djokovic and Andy Roddick. They played a surprise match in front of our head office in Yeouido, Seoul before theSuper Match.

November

Issues sixth edition of Samurai BondsSucceeded in the issuance of 30 billion worth yen of Samurai Bonds. This demonstrated that we had won recognition for our capabilities in the Japanese fund market through the issuance of yen-denominated bonds on five separate occasions.

Fitch Ratings raises credit rating to “BBB+ (Stable)”Credit ratings were adjusted upward by one notch to “BBB+ (Stable)” from “BBB (Positive)” by Fitch Ratings, an internationally-recognized credit rating agency.

Launches Platinum 3 SeriesLaunched “Platinum 3 Series (M3, H3, R3, T3),” redefining the meaning of platinum cards.

Enters into partnership for “green finance” with Korea Finance CorporationLaunched “Green Loan” in alliance with Korea Finance Corporation, offering low interest rates to customers who purchase environmentally friendly buses.

Hyundai Capital Hyundai Card Hyundai Commercial Hyundai Capital & Hyundai Card

March

Hyundai Commercial selected as “Financial Lease Service”Power Brand CompanyOrganized by the Seoul Economic Daily, this honor was bestowed in recognition of the company’s decision to position itself as a specialist in the field of lease financing for industrial machinery that individuals or corporations need to carry on their businesses.

May

Launches Hyundai Card TLaunched a credit card that offers both mileage accumulation and travel benefits.

Hosts “Hyundai Card Super Concert 09 - Andrea Bocelli”Hosted Hyundai Card’s ninth Super Concert, featuring Andrea Bocelli, an Italian tenor and classical cross-over artist with a heavenly voice.

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Hyundai Capital, Hyundai Card and Hyundai Commercial are growing stronger every day. This is done by

realizing the ultimate in customer satisfaction backed by our strategy of stable yet unique management,

an excellent organizational culture, and new and innovative visions.

In 2011, we will enhance our global competitiveness by bolstering our business capabilities even further.

This will allow us to sustain value-oriented growth by overcoming any and all limitations to our continuing growth-including downturns in the global economy.

We are committed to creating values for everyone, beyond boundaries.

Overview

Hyundai Capital, Hyundai Card & Hyundai Commercial

Overview

30 Hyundai Capital Products34 Hyundai Card Products38 Hyundai Commercial Products42 Hyundai Capital Milestones44 Hyundai Card Milestones46 Hyundai Commercial Milestones48 Global Presence50 Directors & Executives52 Independent Auditor’s Report

Overview

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Annual Report 2010

Hyundai Capital Hyundai Capital Products Overview

Auto Financing

Autoplan New Car Program (Autoplan) A new car purchasing program for Hyundai and Kia cars, ranking first in the Korean auto financing market

Autoplan Used Car Program (Autoplan) A leading used car installment payment program, which come with warranties

KlassAuto Auto Leasing (KlassAuto) A leading Korean auto lease program, offering drivers exclusive management services, equipped with the best repair and maintenance system

KlassAuto Long-Term Rental Car Program (KlassAuto) A practical, money-saving, long-term rental car program that offers drivers a full range of the Hyundai Motor Group’s vehicle management services

KlassAuto Corporate Auto Leasing/Rental (KlassAuto)An auto leasing and rental program for corporate customers that ranges from vehicle purchasing through the vehicle’s maintenance to the car’s eventual sale

Personal Loans Direct Loan Personal loans that can be accessed quickly and conveniently without the need for complex documentation or on-site visits

Prime Loan Personal loan products that can be conveniently obtained through visiting Loan Planners following consultations

Mortgages Loans

Prime Mortgage Loan (Prime Mortgage) A loan product that allows borrowers to use up to 85% of their home’s market value as collateral

Prime Mortgage Loan Using Key Money as Collateral (Prime Mortgage) A loan product that allows customers to use up to 80% of their apartment or home lease deposits as collateral for personal or business needs

Prime Mortgage Demand Deposit Account A home loan product that acts like a line of credit, allowing customers to make deposits and withdrawals on demand

Self-Employed Business Financing

Business LoanA loan product that allows self-employed businesspeople to borrow for operating funds

Business Leasing and Car Rental A car leasing and rental product that allows customers to access professional maintenance services

Business Credit Card A customized card product for self-employed businesspeople

Business Insurance A business insurance product that ensures safety in operations by self-employed businesspeople

Customer Services

PLUS+ Membership A financial life protection service that is provided free to Hyundai Capital customers, this is a first for the Korean finance industry

Auto InsideA portal (www.autoinside.co.kr) that provides shoppers with information on used cars offered for sale, vehicle accident histories, and financing and insurance options

Finance Shop A venue that enables customers to access Hyundai Card and Hyundai Capital’s financial services quickly and conveniently

Corporate Events InvitationalCorporate events that support culture and the arts and lesser-known sports. Another first for the industry.

Spur-of-the-moment concerts held downtown, giving busy passersby a chance to rest and relax

Auto Financing

Personal Loans

Mortgages Loans

Self-Employed Business Financing

Products Overview

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Annual Report 2010

Hyundai Capital Products

Mortgages Loans Mortgage loans offer customers convenience and products tailoredto fit their individual needs and financial positions

Prime Mortgage Loans (Prime Mortgage)Customers can borrow up to 85% of their home’s market value and take up to thirty years to repay the loan. Loans can be used for business purposes or to pay off the balance owing on a home.

Prime Mortgage Loan Using Key Money as Collateral (Prime Mortgage)This product allows customers to use up to 80% of their apartment or home lease deposits

as collateral for loans for their personal or business needs.

Prime Mortgage Demand Deposit AccountThis home loan product acts like a line of credit, allowing borrowers to make deposits and withdrawals on demand. Loan applications can be made quickly and easily through ATMs, telephone, or the Internet. There is no charge for early repayments.

Personal Loans We heighten customer satisfaction by providing door-to-door services and custom-tailored products.

Direct Loan Personal loan product that can be accessed quickly and conveniently by phone (including smartphones) or online without the need for complex documentation or visits. Users can check their maximum loan limits without it affecting their credit ratings.

Prime Loan Personal loan product whose reliability and security has been verified by the industry. Customers enjoy a wide variety of benefits, such as a loan waiver service and one-stop financial services—including consultations and applications at a place of the customer’s choosing.

Auto Financing We provide customers with auto financing and leasing products that answer their every need, based on the Hyundai Motor Group’s specialized vehicle management services and knowledge.

Autoplan New Car Program (Autoplan) A new car purchasing program for Hyundai and Kia cars, allows customers to choose repayment periods and methods that are tailored to their individual needs. They include a “125% program” through which customers can access loans for expenses as well as the cost of the vehicle, and a long-term repayment program (termed over forty-eight months or more) that lowers their monthly payments. Returning customers are offered additional benefits, such as visiting vehicle check-ups.

Autoplan Used Car Program (Autoplan)The nation’s number one used car loan product, featuring a 5,000 km/five-month warranty covering major components, has won recognition for its economical efficiency and convenience by many customers.

KlassAuto Lease (KlassAuto) Korea’s best auto lease product, featuring around-the-clock management services backed by the country’s finest repair and

maintenance program. We offer a total solutions package that covers vehicle purchases, maintenance, insurance, and after-sales. Additional services are provided to the owners of luxury models, such as the Hyundai Equus or 5G Grandeur.

KlassAuto Long-Term Lease (KlassAuto)A long-term rental car product that includes professional maintenance services, unrestricted mileage, and the use of LPG fuel. We also offer a money-saving, long-term car rental product for office workers.

KlassAuto Corporate Auto Leases/Rentals (KlassAuto)A lease and rental car product for corporate customers that manages all vehicle ownership processes, from purchasing and operating and maintenance to after-sales. Users of this service also receive a special corporate card that provides customer points and discounts on fuel.

Finance ShopNew-concept, super-convenient financial branches offered by Hyundai Capital and Hyundai Card

Finance ShopsThese new-concept financial outlets enable customers to conveniently access a wide range of financial products and services offered by Hyundai Capital and Hyundai Card. In addition to helpful and friendly assistance, visitors receive many other special benefits.

Finance Shop Services- Business loans - Credit loans - Home loans - Auto leases - Long-term car rentals - Credit card applications and renewals - Gift card sales - M Point redemptions

MY BUSINESSProviding total financial solutions to self-employed businesspeople

MY BUSINESSMY BUSINESS offers self-employed businesspeople such financial products as a business credit card, business loans, business-oriented leasing and rental cars, and business insurance. Other features include business analyses and a transaction assistance service.

Business Credit CardThis card provides business owners with “must-have” benefits, including high credit limits, low interest rates, help with value-added tax returns, and no-interest installment payment plans for the first two-three monthsat participating business establishments.

Business LoanThis product allows self-employed businesspeople to access working capital using their credit, homes, or commercial facilities as collateral. Business Auto Leasing/RentingMY BUSINESS cardholders can pay their lease or rental car charges with their M points, and receive gift vouchers and rewards when they rent or lease a car from Hyundai Capital.

Business InsuranceThis auto and general insurance policy for business owners guards against accidents that can happen while they are operating their businesses. Damages are covered within a predetermined limit.

Business AnalysesWe provide a wide range of capital management solutions, sales analyses, business location analyses, and value-added tax return report solutions that allow self-employed businesspeople to analyze their operations and predict their possibility of success.

MY BUSINESS applicationThe MY BUSINESS smartphone application provides self-employed businesspeople with sales analyses, video training, and business-related news and information.

MY BUSINESS ZoneMY BUSINESS Zone, an offline consultation center, provides self-employed businesspeople with business supports and advice on financial products and taxes.

Marketing SupportsWe offer a “MY BUSINESS event text service” and “MY BUSINESS PR site solutions” to help businesspeople improve their sales.

Knowledge and InformationWe provide tax and legal advice to help businesspeople run their operations better and more efficiently.

Transaction supportsWe provide self-employed businesspeople with a wide range of solutions for safe and convenient transactions and tax reductions.

Invitational

Providing corporate events that support culture and the arts and lesser-known sports, another first the industry

InvitationalHyundai Capital has hosted a series of corporate events called “Hyundai Capital Invitational” with the purpose of seeking out and supporting innovative sports, cultural and art areas, a first in Korea. Beginning with the 2007 “Tour de Korea” bike race featuring Tour de France winner Lance Armstrong, this program has contributed to increasing the public’s interest in such lesser-known sports as cycling and gymnastics. It also extends to cultural events, including concerts. In 2010, we hosted a Korea-Japan professional golf competition.

“Stop & Listen” refers to spur-of-the-moment concerts that give busy passersby a chance to rest and relax through music, culture, and the arts. In 2010, they included a concert by pianist Ji Yong in April and opera performances in December.

Products

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Annual Report 2010

Hyundai Card Hyundai Card Products Overview

Premium

the BlackKorea’s first-ever VVIP card, targeting the top 0.05% of the country’s high- income earners

the PurpleA VIP card targeting the top 5% most prosperous South Koreans

the RedA luxury card for the professional elite

MY BUSINESS

the Red , M2 , M , OThese cards enable self-employed businesspeople to enjoy MY BUSINESS service. They offer all the benefits of the alphabet card line

Platinum

M3 A platinum card featuring the additional benefits of M, including the nation’s largest automobile and refueling discounts

H3 A platinum card with the added benefits of H, including the country’s best family life benefits

R3 A platinum card with the added convenience of R, including the nation’s best shopping benefits

T3 A platinum card with the additional benefits of T, including the nation’s best air and travel benefits

M2 A practical platinum card featuring multi-point benefits and platinum services

M2 Lady

A platinum card exclusively for women, with multi-point benefits and platinum services

A2 A platinum card featuring Asiana Airlines mileage accumulation benefits and platinum-level services

K2 A platinum card featuring Korean Air mileage accumulation benefits and platinum-level services

Alphabet

M A popular multi-purpose card allowing drivers, diners, air travelers, and shoppersto accumulate multi-use points

M Lady

A card especially designed for women, adding shopping, beauty, and child care discounts to the regular M points benefits for automobiles, refueling, dining, and other services

V A multi-purpose discount card offering benefits for using discount stores, gas stations, convenience stores, taxis, and online shopping

H A family-oriented card offering discounts at cram schools, hospitals, and pharmacies

O A card for car owners, offering discounts at gas, diesel, and LPG stations

R A shopping rewards card, offering points worth up to 10% of every purchase, exchangeable for gift certificates

T A travel card offering both mileage accumulation and travel benefits

Post-Paid, Hi-Pass

A toll card that can be used after payment for extra user convenience

Diners/Check

Diners Featuring Diners Club Privilege Services and free access to Diners Club International Airport Lounges

C Point A debit card for making easy purchase payments

C Discount A debit card offering cash-back services for frugal consumers

Service

Hyundai Card Club ServiceOffers platinum and other high-level cardholders discounts worth up to 10-20% at hotels, restaurants, wine bars, and spas across the country

Hyundai Card PRIVIAOffers cardholders access to cultural and leisure activities

Products Overview

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Annual Report 2010

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Annual Report 2010

PRIVIAEnhancing lifestyle services through expanded global partnerships

PRIVIAThe Hyundai Card PRIVIA brand enriches customers’ lifestyles by offering them exclusive access to global lifestyle brands, including the MoMA Online Store Korea. Cardholders can also enjoy especially themed tours, world-class performances, camping, yachting, horseback riding, and a limousine service for special occasions.

“Seoul: A Monocle City Survey” for the Seoul G20 SummitIn 2010, we produced a welcome package, consisting of the English-language versions of “Seoul: A Monocle City Survey” and “Zagat Seoul Restaurants 2010” to be placed in hotels where participants at the Seoul G20 summit stayed and at media centers inside its event sites. Readers could learn about companies in Seoul, the environment, and Korean culture, including design, architecture, the media, music, movies, fashion, and cuisine.

Zagat guidebook on Seoul restaurantsHyundai Card published “Zagat Seoul Restaurants 2010” in cooperation with Zagat, a world-wide provider of guides for hotels, nightlife, shopping, zoos, music, movies, theater, golf, and airlines. Its purpose is to serve as an authoritative primer on Korea’s food culture.

Partnership with MoMAHyundai Card signed a three-year partnership agreement with MoMA in July 2010. It included internships by Korean arts students and exchanges of exhibitions and curators.As part of this partnership, Hyundai Card sponsored the “Abstract Expressionist New York” exhibition held at MoMA in September 2010, and the director of MoMA visited Korea to participate in Hyundai Card “Super Talk” as a speaker. In addition, three Koreans passed the MoMA internship program for 2011 spring semester. Hyundai Card aims to contribute to the development of the fine arts at home and abroad through the partnership.

Hyundai Card Air LoungeHyundai Card provides platinum and higher-grade cardholders with a space for rest and relaxation by operating an air lounge at Incheon Airport. They can rent a variety of travel goods free of charge through touch screen-type vending machines or by using their M points. Travelers who like to read can peruse Monocle, guidebooks by Zagat and the German-based art book publisher Taschen, “Martha Stewart Living,” or works by the Japanese media artist Hiraki Sawa.

Super SeriesSuggesting new paradigms for marketing sports and cultural activities

Hyundai Card Super MatchIn 2010, Hyundai Card again invited leading sports superstars to participate in “Super Match.” We held a gala show called “Medalists on Ice” in June, featuring Vancouver Winter Olympics figure skating medalists Evan Lysacek, Evgeni Plushenko, and Asada Mao. In October, we hosted a match between tennis stars Novak Djokovic and Andy Roddick. They also played a surprise match in front of our head office building in Yeouido, Seoul.

Hyundai Card Super TalkHyundai Card Super Talk is a program in which Korean and overseas celebrities share their thoughts on a variety of topics, including culture, the arts, and business and management. Our guests in 2010 included Glenn Lowry, the director of MoMA, the photographer Kim Jung Man, and the film director Im Sang Soo.

Hyundai Card Super ConcertHyundai Card Super Concert is a wonderful way for Koreans to enjoy world-class concerts without having to leave the country. In 2010, we featured performances by Green Day, Usher, Stevie Wonder, Whitney Huston, Andrea Bocelli, and Itzhak Perlman. The series is increasing its value by expanding genres to include classical music, and by providing lively performances to and various benefits for the public.

Hyundai Card Products

Products

PremiumAdding value to high-income lifestyles through upgraded products and services

the BlackKorea’s first-ever VVIP card, the Black introduced “the black liquid metal plate” in 2011 by adding liquid metal, a cutting-edge nano material, to its credit cards. The card offers users a broad array of premium services, such as free upgrades to first-class seats at domestic airlines, 5 million won gift vouchers that can be used at luxury brand stores and five-star hotels, and access to cultural events through “Time for the Black” and “Super Series.”

the PurpleThis is a VIP card targeting Korea’s top 5% of income earners. Its voucher service, combining high-end luxury and lifestyle trends makes this card “the one to have” in the VIP market.

the RedThis is a luxury card for members of the professional elite who are passionate about their careers and their lifestyles. Its rewards include airline mileage and gift card points.

AlphabetContinuously growing by offering users a wealth of benefits and customized services

Hyundai Card MThis representative credit card of Hyundai Card was the first in Korea to attract more than eight million users. It offers multi-point benefits for automobiles, refueling, dining, aviation, and shopping.

Hyundai Card VThis multi-purpose discount card offers users increasing benefits with frequency of use. Discounts of up to KRW 50,000 are available on a monthly basis, according to the card usage amount for diverse areas including shopping, dining, refueling, coffee, convenience stores, taxis, movies and amusement parks.

Hyundai Card HThis family-type discount card provides up to 10% discounts for cram schools, telecommunications, hospitals, and pharmacies, as well as savings at discount stores, amusements parks, and for refueling and dining.

Hyundai Card OThis card offers discounts at gas and LPG stations. Users can save up to KRW 60 per liter at gas stations and up to KRW 30 per liter at LPG stations.

Hyundai Card RThis shopper’s card lets users accumulate up to 10% of the amount of their purchases. Launched in 2009, it is now rated number one in terms of quality service by female consumers. The points can be used at department stores, discount stores, and online shopping malls, as well as for refueling and Hyundai Card Gift Cards.

Hyundai Card TThis is a travel card that offers users both mileage accumulation and travel benefits. Korean Air miles are added with every use, and duty-free shop gift cards and free domestic air tickets for travel companions are available based on annual purchase totals.

PlatinumOffering users Korea’s finest services and benefits through the Platinum 3 series

Hyundai Card M3 PlatinumThe card doubles the accumulation of M points that offer diverse multi-point benefits for automobiles, refueling and dining anywhere, while providing platinum services such as maximum KRW 120-per-liter discounts at gas and LPG stations, air ticket discounts, and club services.

Hyundai Card H3 PlatinumThis card lets users accumulate M points and offers a wide range of family-style benefits, including up to 10% discounts at cram schools, hospitals, and pharmacies.

Hyundai Card R3 PlatinumThis card lets users accumulate M points and provides enhanced shopping benefits, including up to 10% discounts at department stores and the accumulation of a maximum of 10% of your purchases at other shopping places. It also offers a diversity of platinum services including air ticket discounts and club services.

Hyundai Card T3 PlatinumThis card lets users accumulate M points and provides both mileage and free air tickets for travel companions.

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Annual Report 2010

Hyundai Commercial Hyundai Commercial Products Overview

Products Overview

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Annual Report 2010

Industrial Financing

Corporate Financing

Investment Financing

Specialized productsfor Hyundai MotorGroup

Financing for medical equipment

Corporate Financing Corporate loans Provide loans to companies using their own credit rating and asset holdings as collateral

Financing for real estate Large-sum corporate loans using the future profitability of their real estate development projects as security

Corporate leases Financial products to purchase facilities and equipment that are required for business startups and expansion

Factoring Trade bills or accounts receivable discounts

Specialized products for Hyundai Motor Group Specialized corporate financing products for the business partners of Hyundai Motor Group

Financing for medical equipmentLeases and installment financing for hospitals, clinics, and medical foundations to purchase new medical equipment

Investment Financing Private equity investments An efficient tool to secure funds for facility investments, working capital expansion, and mergers

Fixed income investments Resolves financial needs that are generated during all stages of corporate growth through systematic risk analyses

Industrial Financing Instalment plans for commercial vehicles and construction machinery - Number one in the domestic commercial vehicles and construction machinery installment plan sector

- Official installment plan provider for Hyundai Motors, Kia Motors, and Hyundai Heavy Industries

Used commercial vehicles and construction machinery loans Installment plans for customers who need funds to purchase or operate used commercial vehicles or construction machinery

Machine tool leases and installment plansLeases and installment plans for customers who need funding to purchase machine tools

Financial Services Special services for Hyundai Commercial customers

Fixed incomeinvestments

Private equityinvestments

Factoring

Financing forreal estate

Corporateleases

Corporate loans

Used car loans Machine tool leases and installment plans

New installmentplan

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Annual Report 2010

Hyundai Commercial Products

Products

Industrial Financing Providing reliable financial services for large commercial vehicles, construction machinery, and machine tools

Instalment plans for commercial vehicles and construction machinery Hyundai Commercial’s commercial vehicles and construction machinery installment plans include “official installment plans for Hyundai Motor and Kia Motors” and “official installment plans for Hyundai Heavy Industries.” The former products include low-interest- rate installment plans for high-quality customers who are burdened by high interest rates, interest rate-free deferred installment plans that provide deferment periods without interest to customers who are burdened by high initial installment payments, and smart installment plans that allow customers to pay principal and interest during high-demand periods and interest only during non-high-demand periods. In addition, our “Hyundai Heavy Industries Official Installment Plans” include installment plans with interest-free value-added tax (VAT) for customers who need VAT refunds, and short-term interest-free installment plans for customers who can pay back their loans in a short period of time without having to worry about interest.

Loans for used commercial vehicles and construction machinery We boast the largest domestic market share for loans used to purchase commercial vehicles and construction machinery. These loans are divided into purchasing capital loans for customers wanting to purchase used commercial vehicles and operating capital loans for customers who need business operating funds and are using their vehicles as collateral. We also offer optimal products to meet the needs of customers. They include prime secured loans targeting quality customers who have already received loans from us, and “succession replacement loans” that add convenience to our other succession products.

Machine tool leases and installment plansWe operate installment and leasing programs with collaboration with Hyundai Wia, while providing one-stop consultation, evaluation, and execution services through the nation’s largest automotive sales network. We also support the full amount of supplemental costs, such as notary’s fees, insurance, and document filing charges. In addition, we assist customers who want to acquire machine tools through a rent-to-purchase plan.

Financial Services We provide special services for Hyundai Commercial customers. - Loan repayment exemptions - Customers’ own vehicle accident

compensation - Deferments of installment payments - Discounts for heavy equipment refueling

and repurchasing - Simplified repurchasing documents - Refueling discounts for “Hyundai

Commercial My Business O” card holders - Grace periods enabling customers to pay

interest only - Handling vehicle registrations and

cancellations on behalf of customers

Corporate Financing Applying a broad range of flexible repayment methods and periods using corporate credit ratings and asset holdings as collateral

Corporate loans - General corporate loans

Provide loans to companies according to their business plans using their credit ratings and assets as collateral

- Asset-Backed Loans Provide loans to companies using assets that can be securitized as collateral. Used as a structured financial product enabling them to repay loans with cash flows generated from their assets

Real estate financing - Real Estate Project Financing (PF)

Provides loans for real estate projects using feasibility-based future cash flows as collateral

- Asset-Backed Commercial Paper (“ABCP”)Accept commercial paper (CP) that special-purpose companies (SPCs) have issued using trade receivables, PF loans, corporate bonds, asset-backed securities (ABS), or mortgage-backed securities (MBS) as collateral

Corporate Leases - Facility Leases

Enable customers to acquire or lease facilities and let their business partners use them for a certain period. They pay for their use by installment during that period, and dispose of them according to agreements after the completion of the lease period

- Ship Financing A leading asset-backed financing product using the exchange value of and profits generated by ships as collateral. Includes ship leases, ship-backed loans, Bare Boat Charter Hire Purchases (BBC-HP), and ship funds

FactoringA financial transaction in which a business sells its trade receivables and bills to a third party (called a factor) at a discount in exchange for funding for its continuing operations.

Hyundai Motor Group (HMG) Specialized Products - HMG Win-Win Cooperation Fund

Offers low-interest-rate funding targeting the primary business partners of Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai Powertec, Hyundai Dymos, and KEFICO

- Green Win-Win Mould-Backed Loans And Global Mould-Backed LoansProvides long-term facility loans to the primary business partners of Hyundai Motor and Kia Motors using their moulds as collateral. Includes foreign-currency corporate loans to their overseas subsidiaries

- Hyundai Motor and Kia Motors Family Network LoanA low-interest-rate network loan available using product and service deliveries to Hyundai Motor and Kia Motors as collateral

- HMG Win-Win Growth Q FundProvides low-interest-rate working capital to primary and secondary business partners of Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai E&C, Hyundai Wia, Hyundai Steel, and Hyundai Rotem

Financing for medical equipmentProvides hospitals and clinics with funding for new equipment. This service is offered in the form of long-term financing, including general leases and installment financing. Eligible equipment includes dental and ultrasonic, magnetic resonance imaging (MRI), and computer tomography (CT) devices.

Investment Financing Enhances corporate and shared growth of customers by providing them with a broad range of services, ranging from financial support to investment-related consulting in line with their stage of growth

Private equity investmentsAn efficient means of securing funds for facilities investments, working capital expansion, and mergers. It includes facility and working capital financing to promising companies with high growth potential through sharing in increases in their capital worth, and corporate restructuring investments involving the purchase of shares in companies that are experiencing financial difficulties and then sharing in increases in their capital worth.

Fixed income investmentsHelp resolve financial problems that are generated during all stages of corporate growth. This includes enhancing the corporate value of companies that are targets for restructuring by purchasing their bonds and improving their management afterwards, and purchasing high-interest-rate bonds of companies that are suffering from temporary financial risks based on systematic risk analyses.

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Annual Report 2010

Milestones

Hyundai Capital Milestones

1993 - 2001

1993 12 Founded as Hyundai Auto Finance, Inc.

1995 04

08

Company name changed to Hyundai Financial Services

Obtained preliminary license for installment finance business

1996 01

04

Obtained final license for installment finance business

Launched home mortgage financing business

1998 04

06

12

Established employee Code of Conduct

Launched household loan business and leasing business

Launched new technology financing business

1999 01

07

08

12

Changed company name to Hyundai Capital Services, Inc.

Obtained Y2K certification

Launched flexible limit loan and region-specific loan

Selected as leading financial institution in consumer finance field by Korea’s Financial Supervisory Service (FSS)

2000 02

07

Launched Speed Small Amount Loan business

Established agency sales system

Established dealer agency system

2001 04

07

08

Moved headquarters (Hyundai Capital Building) to Yeouido

Launched auto leasing business

Acquired Diners Club Korea

2002 - 2004

2002 01

07

09

10

12

Launched Just Drive II auto leasing product

Announced Auto Lease satisfaction management goals

Launched Auto Save product

Ranked first in Korea Customer Satisfaction Index (KCSI) survey in “installment finance” category

Established in-house compliance body

2003 03

08

11

Launched call-back service

Established Credit Risk Management System (CRMS)

Won top prize in “customer service innovation” category at KMAC’s Customer Satisfaction Management Awards

2004 01

06

08

10

Announced Hyundai Capital CI

Launched 1:1 customized automatic response system (ARS) service

Launched Prime Club

Launched Mortgage Loan

Formed strategic alliance with GE Capital

Launched joint venture with GE Capital

Launched KlassAuto

Launched Autoplan

Ranked first in KCSI survey in “installment finance” category

2005 - 2007

2005 01

04

05

11

12

Founded Hyundai Capital’s professional volleyball team, the “Cheonan Hyundai SkyWalkers”

Launched quality assurance service for used cars

Expanded Plus Auto Care service

Won Korea Financial Innovation Award

Launched Prime Loan, integrated personal loan brand

2006 05

06

08

Expanded coverage of used car warranty service to 5,000km/5 months

Launched Household Loan in association with Korea National Housing Corporation

Opened first Finance Shop

2007 01

06

07

08

09

10

12

Launched KlassAuto Deferred Lease product

Introduced Loan Waiver program

Introduced KlassAuto Harley Davidson Lease program

Implemented Career Market system

Launched Prime Finance product

Introduced e-Prime Loan service

Hosted “Hyundai Capital Invitational” (Tour de Korea 2007)

Launched Fleet Partner Card

Launched Auto Inside, used car finance portal

Launched Household Fire Compensation program

2008

01

02

04

06

09

10

11

12

Launched PLUS+ Membership Service

Issued 47 billion yen worth of Samurai Bonds

Launched lease succession service

Launched Prime Mortgage loans for long-term home leases

Won grand prize at Korea HR Development Awards

Issued $155 million worth of syndicated floating rate notes (FRNs)

Established industry’s first leased car fraud prevention system

Hosted “Hyundai Capital Invitational 2008 - International Gymnastics Gala”

Number of Autoplan customers for used car payments exceeded one million

Obtained ISO 27001 certification for customer information security

Won grand prize at Korea HR Excellence Awards and CEO of the Year Award from KMAC

Secured $100 million credit line from Citibank

Secured 185 billion won worth of unsecured foreign loans

2009

01

03

04

05

06

07

08

09

10

11

12

Secured 1.65 trillion won credit line

Launched customer visiting Prime Loan Service

Launched Hyundai Capital KlassAuto VVIP program

Ranked first in “capital” category in Korea Brand Power Index (K-BPI) survey conducted by KMAC

Launched Prime Mortgage Card

Launched free quality warranty service for imported used cars

Launched Prime Mortgage Auction Loan

Ranked first in the “credit card and capital” category in “The Best Companies to Work for In Korea” survey conducted by KMAC

Launched KlassAuto Grandeur-Mozen long-term leasing special payments plan

Hosted “Hyundai Capital Invitational 2009 - International Gymnastics Gala”

Opened MY BUSINESS website

Won Best Practice Prize at KMAC’s Korea HR Excellence Awards

Launched Prime Loan Mobile Service

Issued 64 billion won worth of JPY-denominated bonds

Issued $500 million worth of Yankee Bonds

Credit rating outlook upgraded by Japanese credit rating agency JCR

Secured $150 million loan

Launched used car leasing program

Launched Kia Motors installment program for Koreans living in the US

2010

03

04

05

06

07

09

10

11

12

Launched MY BUSINESS franchise loans

Launched Prime Mortgage Demand Deposit Account

Launched “Stop & Listen” concerts

Hosted “Hyundai Capital Invitational 2010: BBC Symphony Orchestra”

Launched new car installment and value guarantee program

Launched workers’ long-term car rentals

Launched Direct Loan

Hosted “Hyundai Capital Invitational 2010: Korea-Japan Professional Golf Competition”

Launched mobile applications

Launched MY BUSINESS secured loans for commercial leases

Carried out KlassAuto door-to-door vehicle maintenance experience service event

Launched Workers’ Loan

Renewed new car installment 125% program

Hosted “Stop & Listen” concerts

Launched MY BUSINESS online loans

Opened MY BUSINESS Zone

Launched MY BUSINESS mobile application

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Annual Report 2010

Hyundai Card Milestones

Milestones

2001 - 2004

2001 08

09

10

11

Acquired Diners Card

Moved headquarters to Hyundai Capital Building in Yeouido

Changed company name to Hyundai Card.Co.,Ltd.

Became affiliate of Hyundai Automotive Group

2002 01

06

Launched Hyundai [M] Card and Kia Noblesse Card

Launched “Save Points” program

2003 03

08

Launched Hyundai Card M

Launched mini M

2004 01

02

06

09

11

12

Announced Hyundai Card CI

Launched Hyundai Card exclusive delivery service system

Ranked first in “credit card” category at KMAC’s “Korea’s Most Admired Company” awards

Launched Hyundai Card S and Hyundai Card I

Ranked first in “credit card” category in the Korea Service Quality Index (KSQI) survey conducted by KMAC

Launched Hyundai Card M and Hyundai Card S Platinum

Launched credit guarantee insurance service

2005- 2006

2005 02

04

08

09

12

Launched “the Black”

Launched Club Academy Service for premium members

Formed strategic alliance with GE Capital

Hosted “Hyundai Card Super Match 01 - Maria Sharapova vs. Venus Williams”

Ranked first in “credit card” category in National Customer Service Index (NCSI) survey conducted by the Korea Productivity Center

2006 01

02

06

08

09

10

11

12

Launched M card for affiliated merchants’ stores

Introduced the service brand, PRIVIA

Won “Best Credit Card Company to Work for” award from KMAC

Established the Women’s Network

Opened the first Finance Shop

Hosted “Hyundai Card Super Match 02 - Superstars on Ice”

Launched Hyundai Card Diners Cards

Launched Hyundai Card M-Q

Hosted “Hyundai Card Super Match 03 - Roger Federer vs. Raphael Nadal”

Received “BBB” rating from S&P

Ranked first in “credit card” category in NCSI survey

2007

01

02

04

05

06

07

08

09

11

12

Hosted “Hyundai Card Super Concert 01 - Il Divo”

Launched Hyundai Card M Lady

Launched Hyundai Card K Platinum

Won grand prize in corporate culture category, 5th Annual Korea Ethical Management Awards

Launched Hyundai Card V

Became first Asian credit card company to issue $ 400 million in overseas bonds

Won “Most Desired Company to Work for” award among credit card companies by KMAC

Introduced world’s first metal implants plate for “the Black”

Launched Hyundai Card F

Launched Super Save program

Hosted “Time for the Black I - Lecture by Louis Vuitton CEO”

Launched Career Market System

Opened first offline M Point Shop in Korea

Hosted “Time for the Black II - Lecture by Harley Davidson CEO”

Introduced first Color Core design in Korea

Hosted “Hyundai Card Super Concert 02 - Beyonce”

Hosted “Time for the Black III - Jancis Robinson Wine Tasting”

Launched Hyundai Card Red Carpet Showcase

Hosted “Hyundai Card Super Match 06 - Pete Sampras vs. Roger Federer”

Won excellence prize in “sports marketing” category at Korea PR Awards


2008

01

02

03

07

08

10

11

12

Launched “Hyundai Card Super Class 01” and “Hyundai Card A Platinum”

Launched “Hyundai Card H”

Won grand prize for HR development at Korea HRD Awards

Hosted “Time for the Black IV - Christie’s Fine & Rare Wine Tasting”

Exceeded one million cardholders of Hyundai Card M Platinum

Launched Merchant Store Loan and Workers’ Loan

Launched Hyundai Card W Travel

Launched “the Red”

Launched M Product service

Hosted “Hyundai Card Super Class 02”

Hosted “Hyundai Card Super Match 07 - 2008 Superstars on Ice”

Ranked first in the “credit” category in KMAC’s “best companies to work for in Korea” survey

Launched M points passbook service for buying cars

Hosted “Time for the Black V - Christie’s New York Art Auction Preview”

Obtained ISO 27001 certificate for consumer information protection

Won grand prize at Korea HR Excellence Awards and KMAC’s CEO of the Year Award

Co-hosted MoMA’s “Humble Masterpieces: Everyday Marvels of Design” exhibition

Hosted “Hyundai Card Super Concert 03 - Billy Joel”

Launched 50 Million M Point Donation Campaign


Ranked first in “credit card” category in Korean Net Promoter Score (KNPS) survey

Won grand prize at Web Awards Korea

2009

01

02

03

04

05

07

08

09

10

11

12

Launched MY BUSINESS card

Hosted “Hyundai Card Super Concert 04 - Plácido Domingo”

Co-hosted “Destination: Seoul” with MoMA Design Store in New York

Hosted “Hyundai Card Super Class 03”

Hosted “Time for the Black VI - Pierre Gagnaire Gala Dinner”

Opened Hyundai Card Homepage 3.0

Launched Hyundai Card Post-Paid Hi-Pass

Launched Hyundai Card R

Issued “the Black” with titanium plate

Hosted “Time for the Black VII - Christie’s Fine & Rare Wine Tasting”

Launched “Hyundai Card Super Class 04”

Ranked first in the “credit category” in KMAC’s “best companies to work for in Korea”

Hosted “Hyundai Card Super Match 08 - Super Class on Ice”

Launched Hyundai Card M Points A/S Guarantee Service

Hosted “Hyundai Card Super Concert 05 - Craig David”

Hosted “Hyundai Card Super Concert 06 - Vienna Philharmonic with Sumi Jo”

Hosted “Time for the Black VIII - Jessey Norman Private Concert”

Won Best Practice Prize at KMAC’s HR Management Awards

Launched “exclusive silver care service” for elderly cardholders

Hosted “Hyundai Card Super Match 09 - Snow Board City Jump”

Hosted “Time for the Black IX - Sarah Chang Private Concert”

Published exclusive Korean edition of Martha Stewart Living


Won Best Website Prize at Web Awards Korea

2010

01

02

03

04

05

06

07

08

09

10

11

12

Launched “Hyundai Card Super Concert 07 - Green Day”

Launched Corporate Loan Service

Published “Zagat Seoul Restaurants 2010”

Expanded “the Black” Korean Air ticket upgrading service

Hosted “Hyundai Card Super Concert 08 - Whitney Houston”

Established alliance with Taschen global art book publisher

Hosted Hyundai Card Super Class 05

Launched “customer grievances settlements by management” program

Opened Hyundai Card Air Lounge at Incheon Airport

Opened Jamsil Store in M Point Mall

Hosted “Time for the Black X - Christie’s New York Art Auction Preview and Mock Auction”

Launched Hyundai Card T

Hosted “Hyundai Card Super Concert 09 - Andrea Bocelli”

Hosted “Hyundai Card Super Match 10 - Medalists on Ice”

Launched the Black and the Purple iPhone offering and KT premium service

Hosted “Time for the Black XI - Joshua Bell Private Concert”

Hosted “Hyundai Card Super Concert 10 - Usher”

Hosted “Hyundai Card Super Concert 11 - Stevie Wonder”

Opened Hyundai Card corporate blog

Hosted “Hyundai Card Super Concert 12 - Itzhak Perlman”

Hosted “Hyundai Card Super Match 11 - Novak Djokovic vs. Andy Roddick”

Hosted “Hyundai Card Super Talk 01”

Launched Hyundai Card Platinum 3 series (M3, H3, R3, T3)

Credit rating upgraded to “BBB+(S)” by Fitch Ratings

Hosted “Time for the Black XIII - Clive Coates Burgundy Wine Tasting”

Credit rating upgraded to “AA+” by Korea Investors Service

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Annual Report 2010

Hyundai Commercial Milestones

Milestones

2010

01

03

04

06

07

08

10

11

12

Launched financial products for medical equipment

Selected as a power brand company in the financial leasing category by Seoul Economic Daily

Launched extensive deferments of installments for commercial vehicles

Implemented and expanded use of differentiated interest rates by credit rating for customers with new car installment plans

Launched network loans for business partners of Hyundai Motor and Kia Motors

Financial assets reached KRW 2 trillion

Launched drivers’ own vehicle accident compensation service

Launched Green Loan products in alliance with Korea Finance Corporation

Credit rating upgraded to “AA- (Stable)”

Provided financial programs for win-win cooperation targeting overseas business partners of Hyundai Motor and Kia Motors (payment guarantees for mould-backed loans)

2009

01

05

09

10

12

Achieved 100% market share in installment financing for large commercial vehicles of Hyundai Motor and Kia Motor

Launched branch service in the capital area (Gangbuk and Gangnam Branches)

Launched financial partnership assistance for used vehicle dealers

Launched new industrial materials CM mileage program

Launched illegal exports prevention alarm system

Launched loan repayment exemption service

Launched secured loans for sales firms

Launched deferments of installment payments for tour bus operators following the spread of H1N1

Credit rating upgraded to “A+ (Positive)

Operating assets reached KRW 1.6 trillion

Launched EZ commercial loan 2 for used commercial vehicles

2008

01

04

06

10

11

12

Joined the Credit Finance Association

Introduced interest rate differentiation by credit rating (new and used car loans)

Registered in the foreign exchange business

Unified debt collection

Registered in the financing for new technology business

Assets reached KRW 1 trillion

Achieved 60% market share in installment financing for used commercial vehicles

Selected as win-win fund management company for HMG partners

Launched win-win fund management

2007

03

04

05

07

10

Founded by taking over the industrial materials sector of Hyundai Capital

Registered in the specialized credit financing business (including facility rentals and installment financing)

Launched monthly installment loans for machine tools in partnership with Hyundai WIA

Launched affiliated corporate financing

Launched real estate PF loans

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Annual Report 2010

Global Presence

01

Hyundai Capital, Hyundai Card & Hyundai Commercial Headquarters15-21 Yeouido–dong Yeongdeungpo–guSeoul, Korea, 150–706

07

Hyundai Capital America3161 Michelson Drive, Irvine CA, 92612, U.S.A.

04

Hyundai Capital Europe GmbHTheodor HeussAllee 11, 60486 Frankfrut am Main, Germany

02

Hyundai Capital Beijing Representative OfficeHyundai Motor Tower Room No.407 No.38 Xiaoyun Road, Chaoyang District, Beijing, China (100027)

06

Hyundai Capital Moscow Representative OfficeWorld Trade Center, ent. 3, office 1901, Krasnopresnenskaya nab. 12, 123610, Moscow, Russia

03

Hyundai Capital New Delhi Representative Office6th floor, Corporate One, Plot No. 5, Non-Hierarchical Commercial Centre, Jasolar, New Dehli 100 076, India

05

Hyundai Capital GermanyTheodor HeussAllee 11, 60486 Frankfrut am Main, Germany

01 Hyundai Capital · Hyundai Card · Hyundai Commercial Headquarters Seoul , Korea

02 Hyundai Capital Beijing Representative Office Beijing, China

03 Hyundai Capital New Dehli Represnetative Office New Dehli, India

04 Hyundai Capital Europe GmbH Frankfrut, Germany

05 Hyundai Capital Germany Frankfrut, Germany

06 Hyundai Capital Moscow Representative Office Moscow, Russia

07 Hyundai Capital America Irvine, U.S.A.

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Annual Report 2010

Board of Directors

Ted ChungPresident

Hyun-Seok ShinDirector

Won-Hee Lee Director

Yong-Bae LeeDirector

Bernard van BunnikDirector

Matthew Richard SusserDirector

Geoffrey Bruce CulbertDirector

Executives

Ted ChungCEO

Bernard van BunnikDeputy CEO

Hyun-Seok ShinSenior Executive Vice PresidentAuto Business Division

Yoo-No HwangSenior Executive Vice PresidentCorporate Services Division

Jwa-Jin ChoExecutive Vice PresidentHead of Financial Marketing Division

Jin-Hwan ChoiExecutive Vice PresidentStrategic Planning Division

Keun-Bae JungSenior Vice PresidentHead of Auto Business Division

Jae-Eul ChoiSenior Vice PresidentIT Department

Suk-Joon WonSenior Vice PresidentCorporate Services Division (HCA)

Sang-Woo KimVice PresidentEarly Collections Department

Yoon-Tae KimVice PresidentTreasury Department

Sang-Hyuk SuhVice PresidentOverseas Business Department

Soo-Kyung KimVice PresidentController

Hyun-Joo KimVice PresidentRisk Representative·Collection Representative

Heather ValterisVice PresidentCVM Department

Niclas NeglenVice PresidentManagement Department

In-Hwan KwakVice PresidentUnderwriting Department

Sung-Won ChoiVice PresidentHR Department

Hwan-Bin YongVice PresidentPL Planning Department

Soo-Jeong PaekVice PresidentMarketing Department

Gwi-Ho KangVice PresidentAuto Business Department II

Gyo-Chang LeeVice PresidentCS Department

Byung-Hui LeeVice PresidentAuto Finance Planning Department

Dai-Gyu LimVice PresidentJungbu Auto Regional Headquarters

Man-Seob ParkVice PresidentWest Auto Regional Headquarters

In-Ju KimVice PresidentYeongnam South AutoRegional Headquarters

Woon-Chul JungAuditoAuditor

Hong-Kyun KimVice PresidentBeijing Representative Office

Dae-Kyoon KwonVice PresidentOverseas Business Team (HCA)

Hyundai Capital

Board of Directors

Ted ChungPresident

Hyun-Seok ShinDirector

Yoo-No Hwang Director

Jae-Rok LeeDirector

Yong-Bae LeeDirector

Bernard van BunnikDirector

Kun NahOutstanding Director, Audit Committee Member Byung-Il KimOutstanding Director, Audit Committee Member

Kun-Bum LeeOutstanding Director, Audit Committee Member

Steven Andrew SargentOutstanding Director

Gregory Leong Hong Outstanding Director

King Toh Lee Outstanding Director

Executives

Ted ChungCEO

Bernard van BunnikDeputy CEO

Jung-Hoe KimAdvisor

Ju-Hyuk LeeExecutive Vice PresidentFinance Division

Se-Hun ParkExecutive Vice PresidentMarketing Division

Jin-Moon JungSenior Vice PresidentPersonal Finance Division

Byeong-Hee KimSenior Vice PresidentRisk Management Division

Eun-Gu Jang Senior Vice President Corporate Financing Division

Jung-In Kim Senior Vice PresidentOperations Division

Jae-Hwan KimSenior Vice President Card Sales Department

Sung-Won JinVice PresidentCLM Department (Cross-sell)

Sang-Ho JeongVice PresidentSME Business Department

Yoon-Seok LeeVice PresidentCorporate Services Department

Sung-Moon KimVice PresidentAudit Department

Gil-Soo JunVice PresidentAlliance Business Department

Jin-Tae KimVice PresidentCorporate Management Department

Kyu-Sik KimVice PresidentCorporate Legal Affairs Department

Kyung-Joo MinVice PresidentFee Business Department (Fee Biz)

Mee-Young LeeVice PresidentBrands Department

Yeon-Woong BaekVice PresidentCollections Department

Yong-Teak HwangVice PresidentMarketing Department

Joon OhVice PresidentDesign Department

Myong-Su LeeVice PresidentCLM Department

Hyundai Card

Directors & Executives

Board of Director’s Activities

Risk Control CommitteeThe Risk Control Committee is a deliberative body that is committed to achieving sound management and stable profitability. It does this by overseeing all potential risks related to the joint operations of Hyundai Capital and Hyundai Card.

Meeting frequency: MonthlyMembership: Five from HMC, five from GECC

ComplianceReview BoardThis body is tasked with ensuring the efficient operation of the companies’ various compliance policies and establishing relevant policies. This including compliance with regulations regarding the overall joint management of Hyundai Capital and Hyundai Card

Frequency of Meetings: QuarterlyMembership: Seven from HMC, seven from GECC

Executive Finance CommitteeThe Executive Finance Committee is a decision-making body that ensures that the financial activities of all Hyundai Capital and Hyundai Card’s operations are carried out smoothly.

Meeting frequency: MonthlyMembership: Four from HMC, three from GECC

Hyundai Capital and Hyundai Card operate joint committees with their two major shareholders, Hyundai Motor Company (HMC) and GE Capital Corporation (GECC). This is

done to ensure efficient corporate management and administration.

Board of Directors

Ted ChungPresident

Byeong-Doo KimDirector

Won-Hee LeeDirector

Ju-Hyuk LeeDirector

Jin-Hwan ChoiDirector

Executives

Ted ChungCEO

Byeong-Doo KimExecutive Vice President

Jin-Hwan ChoiExecutive Vice PresidentStrategic Planning Division

Sung-Moon KimAuditor

Byeong-Hee KimSenior Vice PresidentRisk Management Division

Jeong-Hak SonSenior Vice PresidentInvestment Financing Department

Jae-Eul ChoiSenior Vice PresidentIT Department

Gil-Ho JeonDirectorIndustrial Financing Department

Gyu-Sik KimDirectorBusiness Legal Affairs Department

Yeon-Wung BaekDirectorBonds Management Office

Byeong-Gu JeonDirectorBusiness Management Department

Hyundai Commercial

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Annual Report 2010

Deloitte Anjin LLCSeoul, Korea

March 8, 2011

Samil PricewaterhouseCoopersSeoul, Korea

March 2, 2011

To the Shareholders and Board of Directors of Hyundai Capital Services, Inc.

We have audited the accompanying statements of financial position of Hyundai Capital Services, Inc.(the “Company”) as of December 31, 2010, and the related statements of income, appropriation of retained earnings, changes in shareholders’ equity and cash flows for the year then ended, expressed in Korean won. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of the Company as of and for the year ended December 31, 2009, presented herein for comparative purposes, were audited by other auditors whose report dated February 24, 2010, expressed an unqualified opinion on those statements.

We conducted our audit in conformity 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements as of and for the year ended December 31, 2010, referred to above present fairly, in all material respects, the financial position of Hyundai Capital Services, Inc. as of December 31, 2010, and the results of its operations, the changes in its retained earnings, changes in shareholders’ equity and cash flows for the year then ended in conformity with accounting principles generally accepted in the Republic of Korea.

Accounting principles and auditing standards and their application in practice vary among countries. The accompanying financial statements are not intended to present the financial position, results of operations, changes in shareholders’ equity and cash flows in conformity with accounting principles and practices generally accepted in countries and jurisdictions other than the Republic of Korea. In addition, the procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those who are informed about Korean accounting principles or auditing standards and their application in practice.

Independent Auditor’s Report

Hyundai Capital Hyundai Card

52 53

To the Shareholders and Board of Directors of Hyundai Card Co., Ltd.

We have audited the accompanying non-consolidated statements of financial position of Hyundai Card Co., Ltd.(the “Company”) as of December 31, 2010, and the related non-consolidated statements of income, appropriations of retained earnings, changes in shareholders’ equity and cash flows for the year then ended, all expressed in Korean won. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements for the year ended December 31, 2009 presented herein for comparative purposes were audited by Samil PrincewaterhouseCoopers and their report, dated February 10, 2010, expressed an unqualified opinion on those statements.

We conducted our audit 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2010, and the results of its operations, changes in its retained earnings and its shareholders’ equity, and its cash flows for the year ended December 31, 2010, in conformity with accounting principles generally accepted in the Republic of Korea.

Accounting principles and auditing standards and their application in practice vary among countries. The accompanying financial statements for the year ended December 31, 2010 are not intended to present the financial position, results of operations, changes in shareholders’ equity and cash flows in accordance with accounting principles and practices generally accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable about Korean accounting procedures and auditing standards and their application in practice.

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Annual Report 2010

Independent Auditor’s Report

Hyundai Commercial

Deloitte Anjin LLCSeoul, Korea

February 24, 2011

www.hyundaicard.com

www.hyundaicommercial.com

www.hyundaicapital.com

To the Shareholders and Board of Directors of Hyundai Commercial

We have audited the statements of financial position of Hyundai Commercial (the “Company”) for the years ending December 31, 2009 and December 31, 2010, as well as the statements of income, appropriation of retained earnings, changes in shareholders’ equity and cash flows for the respective periods, expressed in Korean won. These financial statements are the responsibility of the Company’s management. Our responsibility is solely to express an opinion on these financial statements based on the results of our audit.

We conducted our audit in accordance with the generally accepted auditing standards of the Republic of Korea. Those standards require that we plan and perform an audit of sufficient depth to obtain reasonable assurance that the financial statements as presented by the Company are free of any material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures presented in the financial statements. An audit also includes an assessment of significant estimates made by management and the accounting principles used, as well as an evaluation of the overall financial statement presentation. We believe that our audit has provided a reasonable basis for our opinion.

In our opinion, the financial statements for the years ended December 31, 2009 and December 31, 2010, referred to above, present fairly, in all material respects, the financial position of Hyundai Commercial as of December 31, 2009 and December 31, 2010, respectively. These statements representing the results of its operations, the changes in its retained earnings, changes in shareholders’ equity and cash flows for the years covered by the statement, are in conformity with the generally accepted accounting principles of the Republic of Korea.

Annual Report: Hyundai Capital / Hyundai Card / Hyundai Commercial 2010

Investor Relations

Transcript of Annual Report: Hyundai Capital / Hyundai Card / Hyundai Commercial 2010