SSANGYONG MOTOR COMPANY BALANCE SHEETS AS OF DECEMBER 31, 2001 AND 2000      Korean Won Translation into U.S. Dollar   2001 2000 2001 2000 CURRENT ASSETS : Cash and cash equivaletns 34,219,048 42,627,960 $25,804,274 $3,2145,359 Short-term financial instruments 12,618,947 19,339,130 9,515,834 14,583,463 Marketable securities 19,302 1,113 14,555 839 Trade receivables, less allowance for doubtful accounts and present value accounts of 213,585,529 thousand in 2001 and 202,200,657 thousand in 2000 270,299,623 236,212,544 203,830,498 178,125,740 Other receivables less allowance for doubtful accounts of 65,146,291 thousand in 2001 and 76,281,934 thousand in 2000 48,167,241 91,436,479 36,322480 68,951,421 Short-term loans less allowance for doubtful accounts of 4,917,022 thousand in 2001 and 4,896,531 thousand in 2000 2,573,037 1,633,860 1,940,304 1,232,079 Advanced payments, less allowance for doubtful accounts of 414,536 thousand in 2001 and 834,047 thousand in 2000 8,319,218 697,757 6,273,447 526,172 Prepaid expenses 4,104,640 2,430,550 3,095,272 1,832,856 Inventories 156,945,932 123,281,772 118,351,506 92,965,668 Other current assets, 88,580 1,876,000 66,797 1,414,675   537,355,568 519,537,165 405,214,967 391,778,272 Investments : Investments securities 5,152,988 3,624,817 3,885,822 2,733,442 Long-term other receivables less present value accounts of 8,909,859 thousand in 2001 45,090,141 - 34,002,067 - Long-term loans less allowance for doubtful accounts and present value accounts of 11,194,864 thousand in 2001 and 11,524,216 thousand in 2000 9,063,104 9,197,970 6,834,405 6,936,106 Guarantee deposits less allowance for doubtful accounts of 2,743,807 thousand in 2001 and 4,278,673 thousand in 2000 37,109,243 9,307,559 27,983,744 7,018,746 Other investments 11,000,990 10,881,054 8,295,747 8,205,304 Total investments 107,416,466 33,011,400 81,001,785 24,893,598 Property, plant and equipment 1,363,826,359 1,483,352,412 1,028,449,105 1,118,582,619 Intangible assets 71,998,463 51,571,474 54,293,389 38,889,581 Total assets 2,080,596,856 2,087,472,451 1,568,959,246 1,574,144,070 CURRENT LIABILITIES : Trade payables 406,383,105 391,659,107 306,449,819 295,346,585 Other payables 271,071,736 333,625,300 204,412,741 251,583,817 Short-term borrowings, less present value accounts of 7,329,150 thousand in 2000 224,316,294 705,909,178 169,154,886 532,319,718 Current-portion of long-term debt less allowance for discount on debenture issuance and present value accounts of 541,387 thousand in 2001 and 2,151,911 thousand in 2000 41,291,509 90,967,171 31,137,553 68,597,520 Accrued expenses 25,931,408 19,537,874 19,554,640 14,733,334 Advance received 5,433,708 5,325,280 4,097,510 4,015,745 Withholding accounts 24,660,999 19,859,456 18,596,636 14,975,836 Other current liabilities 873,450 929,483 658,661 700,915 Total current liabilities 999,962,209 1,567,812,849 754,062,446 1,182,273,470 LONG-TERM LIABILITIES : Long-term debt,less present avlue account of 21,746,139 thousand in 2001 and 73,360,631 thousand in 2000 622,550,711 1,298,619,981 469,459,853 979,277,567 Retirement and severance benefits less national pension paid for employees of 7,664,891 thousand in 2001 and 8,583,352 thousand in 2000 132,458,757 117,524,687 99,885,949 88,624,302 Accrued warranties and product liabilities 72,697,362 58,556,157 54,820,422 44,156,668 Total long-term liabilities 827,706,830 1,474,700,825 624,166,224 1,112,058,537 Total liabilities 1,827,669,039 3,042,513,674 1,378,228,670 2,294,332,007 SHAREHOLDERS' EQUITY : Common stock 190,404,440 190,404,440 143,582,264 143,582,264 Deficit (1,095,348,395) (1,110,513,195) (825,992,305) (837,427,943) Capital adjustment (Note 20) 1,157,871,772 (34,932,468) 873,140,617 (26,342,258) Total shareholders' equity 252,927,817 (955,041,223) 190,730,576 (720,187,937) Total liabilities and shareholders' equity 2,080,596,856 2,087,472,451 $1,568,959,246 $1,574,144,070