SSANGYONG MOTOR COMPANY
BALANCE SHEETS AS OF DECEMBER 31, 2004 AND 2003   
  Korean Won Translation into
U.S. Dollar
ASSETS
2004
 2003 2004
2003
CURRENT ASSETS : Cash and cash equivaletns
11,078,494
 128,910,039 $10,614 $123,501
Short-term financial instruments 57,658,756 66,311,888 55,239 63,529
Trading securities -
 927,375 - 888
Available-for-sale securities 1,578 - 2 -
Trade receivables, net of allowance for doubtful accounts of 94,929,225 thousand in 2004 and 121,810,979 thousand in 2003, and present value discount of 213,992 thousand in 2004 and 79,179 thousand in 2003
212,678,355
 216,177,048 203,754 207,106

Short-term loans, net of allowance for doubtful accounts of 4,052,527 thousand in 2004 and 4,956,960 thousand in 2003

1,527,319
 2,705,532 1,463 2,592

Other receivables, net of allowance for doubtful accounts of 4,951,631 thousand in 2004 and 19,110,582 thousand in 2003, and present value discount of 1,127,308 thousand in 2003

32,144,842
 17,877,710
 30,796 17,127

Advanced payments, net of allowance for doubtful accounts of 522,165 thousand in 2004 and 412,581 thousand in 2003

56,697,686
 44,848,861 54,318 42,967
Prepaid expenses 4,442,680
 3,948,840 4,256 3,783
Inventories, net of allowance for valuation of 11,788,587 thousand in 2004 364,799,842
 316,822,038 349,492 303,528

Other current assets, net of allowance for doubtful accounts of 2,274,783 thousand in 2004 and 2,917,048 thousand in 2003

1,432,969
 3,770,057 1,373 3,612
  742,462,521
 802,299,388 711,307 768,633
NON-CURRENT ASSETS Long-term financial instruments 16,000
 16,000 15 15
Long-term loans, net of allowance for doubtful accounts of 3,710,721 thousand in 2004 and 10,134,298 thousand in 2003
33,514,335
 28,557,986 32,108 27,360
Available-for-sale securities 1,574,499
 1,607,739 1,509 1,540
Equity securities using the squity method 1,924,494 - 1,844 -
Long-term trade receivables, net of allowance for doubtful accounts of 2,995 thousand in 2004 and 385,462 thousand in 2003, and present value discount of 218 thousand in 2004 and 48,382 thousand in 2003 6,200
 538,946 6 517
Guarantee deposits, net of allowances for doubtful accounts of 1,228,580 thousand in 2004 and 1,217,911 thousand in 2003 38,748,818 36,078,901 $ 37,123 $ 34,565
Group severance insurance deposits -
 6,952,696 - 6,661
Advance for employee contribution 7,012,370
 5,530,380 6,718 5,298
Deferred tax assets 184,047,415
 228,838,866 176,325 219,236
Other investments in properties 623,206
 1,885,153 597 1,806
Property, plant and equipment, net 1,513,529,133 1,334,148,967 1,450,018 1,278,165
Intangible assets 86,740,011
 83,209,076 83,100 79,718
  1,867,736,476
 1,727,364,710 1,789,363 1,654,881
  2,610,198,997
 2,529,664,098 $2,500,670 $2,423,514
LIABILITIES AND SHAREHOLDERS' EQUITY
2004 2003 2004 2003
CURRENT LIABILITIES : Trade payables 465,203,428
 374,746,348 $445,683 $359,021
Short-term borrowings 58,956,512
 17,458,047 56,483 16,726
Other payables 202,957,883
 233,023,162 194,441 223,245
Advances from customers 6,468,733
 6,084,742 6,197 5,829
Withholdings 14,251,610
 25,629,589 13,653 24,554
Accrued expenses 36,802,429
 26,314,875 35,258 25,211
Current-portion of long-term debt 79,328,495
 118,882,992 76,000 113,894
Accrued warranties and product liabilities 54,640,809
 48,583,717 52,348 46,545
Other current liabilities 1,550,674
 2,335,082 1,486 2,237
  920,160,573
 853,058,554 881,549 817,262
LONG-TERM LIABILITIES : Long-term debt, net of present value discount of 6,035,116 thousand in 2003 246,557,785
 284,824,102 236,212 272,870
Accrued severance indemnities, net of National Pension Fund of 3,538,908 thousand in 2004 and 4,392,151 thousand in 2003, and severance insurance deposits of 5,243,875 thousand in 2004 158,548,702
 142,260,214 151,896 136,291
Accrued warranties and product liabilities 50,934,508 43,492,793 48,797 41,668
Other long-term liabilities 13,600,990 - 13,030 -
  469,641,985
 470,577,109 449,935 450,831
Total liabilities 1,389,802,558
 1,323,635,663 1,331,484 1,268,093
SHAREHOLDERS' EQUITY : Capital stock 604,023,100
604,023,100
578,677 578,677
Capital surplus 15,440,281
15,440,281
14,792 14,792

Retained earnings (Net income of 11,388,737 thousand in 2004 and 589,695,819 thousand in 2003)

601,078,990
589,695,819  575,856 564,951
Capital adjustments        
Gain (loss) on valuation of available-for-sale securities 67,327
 (3,125,199) 65 (2,994)
Loss on disposal of treasury stock -
 (5,566)
 -
 (5)
Valuation loss using the equity method (213,259)
 - (204) -
Total Shareholders' Equity 1,220,396,439 1,206,028,435 1,169,186 1,155,421
Total Liabilities and Shareholders' Equity 2,610,198,997
 2,529,664,098 $2,500,670 $2,423,514