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Hyundai Capital Hyundai Card Annual Report 2010

Hyundai Capital Hyundai Card Annual Report 2010
현대캐피탈 현대카드 연차보고서 애뉴얼리포트 Annual Report 2010년

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

    • Beyond Boundariesfor Sustainable GrowthHyundai Capital, Hyundai Card & Hyundai Commercial Annual Report 2010
    • Beyond Boundaries for Sustainable Growth 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.ContentsBeyond Boundaries04 Financial Highlights & Statements10 CEO’s Message18 Highlights26 2010 At a GlanceOverview30 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
    • 4 5Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Financial Highlights 667 ’10& StatementsHyundai Capital2010 Operating Income 541 ’09 (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 56,636,972 505 ’08 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 232,361,373 226,934,783 476 Other Assets 733,706,891 1,384,110,561 ’07 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 1,223,867,942 383 ’06 (Unit: In thousands of KRW) Income Statements 2010 (18th) 2009 (17th) Operating Revenue 2,989,835,469 2,989,268,715 (Unit: In billions of KRW) Operating Expenses 2,322,775,322 2,448,256,349 2010 2009 2008 2007 2006 Operating Income 667,060,147 541,012,366 Operating Revenue 2,990 2,989 4,330 2,245 2,209 Non-Operating Revenue 35,518,007 21,785,888 Operating Income 667 541 505 476 383 Non-Operating Expenses 23,199,083 24,598,393 Net Income 512 411 377 333 417 Income Before Income Tax Expenses 679,379,072 538,199,861 Total Assets 17,931 15,854 16,068 13,771 12,069 Income Tax Expenses 167,833,709 126,969,112 Total Shareholders’ Equity 2,203 2,156 1,650 1,414 1,178 Net Income 511,545,363 411,230,750
    • 6 7Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Financial Highlights& StatementsHyundai Card 3892010 Operating Income ’10 300 ’06 286 ’09 (Unit: In thousands of KRW) Balance Sheets 2010 (16th) 2009 (15th) 258 Assets 9,915,767,764 7,291,248,896 ’08 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 73 Liabilities 8,263,679,013 5,808,000,005 ’07 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 (Unit: In thousands of KRW) Income Statements 2010 (16th) 2009 (15th) Operating Revenue 2,275,741,542 1,840,843,429 (Unit: In billions of KRW) Operating Expenses 1,886,555,975 1,554,553,048 2010 2009 2008 2007 2006 Operating Income 389,185,567 286,290,381 Operating Revenue 2,276 1,841 1,594 1,121 1,110 Non-Operating Revenue 21,086,584 24,088,004 *Operating Income 389 286 258 73 300 Non-Operating Expenses 21,188,111 15,847,424 Net Income 353 213 202 234 281 Income Before Income Tax Expenses 389,084,041 294,530,961 Total Assets 9,916 7,291 5,671 4,645 3,383 Income Tax Expenses 36,213,974 81,711,914 Total Shareholders’ Equity 1,652 1,483 1,234 1,123 831 Net Income 352,870,067 212,819,047 * 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)
    • 8 9Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Financial Highlights& StatementsHyundai Commercial2010 Operating Income 67 ’10 (Unit: In thousands of KRW) 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 - 28 ’09 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 14 Capital Surplus - - ’08 Capital Adjustment - -663,810 Other Accumulated Comprehensive Income and Losses -759,373 -1,858,093 Retained Earnings 75,538,802 11,369,109 10 ’07 (Unit: In thousands of KRW) Income Statements 2010 (4th) 2009 (3rd) Operating Revenue 236,297,922 163,017,654 (Unit: In billions of KRW) Operating Expenses 169,191,275 135,399,801 2010 2009 2008 2007 Operating Income 67,106,647 27,617,854 Operating Revenue 236 163 136 58 Non-Operating Revenue 17,740,039 4,336,400 Operating Income 67 28 14 10 Non-Operating Expenses 570,999 400,238 Net Income 65 28 14 8 Income Before Income Tax Expenses 84,275,687 31,554,017 Total Assets 2,534 1,629 1,127 861 Income Tax Expenses 19,442,184 3,543,057 Total Shareholders’ Equity 175 109 74 70 Net Income 64,833,503 28,010,959
    • 10 11Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010CEO’s MessageBeyond Excellent asset stability, outstanding In 2010, Stable Profit Trend Hyundai Capital, Hyundai Card and Hyundai Commercial financial resultsBoundaries Hyundai Capital achieved industry-leading performances while 2010 was a year in which the government stimulus policy slowed down in the 2010 operating income YoY (%) demonstrating unparalleled competencies in the areas of +23.3% wake of 2009’s economic uncertainties, and the age of low interest rates came risk management, corporate culture, and marketing. 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 We have redefined the meaning of customer service measures. Many financial regulations were strengthened, and the country’s Net income before income taxes (In billions of won) by going beyond the generally prescribed identity of ratio of household debt to consumer finance rose to reach the highest level in ’10 679 the world. ’09 538 financial companies and realized efficiencies through ’08 475 business crossovers. In addition, we achieved growth by 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, establishing and disseminating our corporate culture, Hyundai Capital, Hyundai Card and Hyundai Commercial posted operating income a key driver behind any and all corporate growth. of 667.1 billion won, 389.2 billion won, and 67.1 billion won, respectively. These Hyundai Card 2010 operating income YoY (%) figures, all of which exceeded those posted the year before, proved that growth We enjoyed stable earnings again this year. This was done by putting exhaustive risk management processes in place, 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.” +35.9% It applies to all of our operations, including product planning and marketing, by deploying our new corporate culture, and by carrying customer service, and our overall corporate culture. Net income before income taxes (In billions of won ) out innovative and creative marketing campaigns. In 2011, Hyundai Capital ranked first in the industry in all areas of new and used car ’10 389 we will continue to grow by realigning our organizational loans and leasing services, with excellent financial performance and high ’09 295 ’08 272 market shares. Hyundai Card enhanced its second-place market share position structures and enhancing our overseas operations. Including 101 billion won from the sale of Daewoo in Korea, becoming the brand which customers want to recommend most due International in 2010 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 Hyundai Commercial 23.3% and 24.4%, respectively, from the previous year. In addition, the company 2010 operating income YoY (%) +243.1% 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 Net income before income taxes (In billions of won ) asset portfolio, while laying the groundwork for even more growth in the future ’10 84 by advancing into a wide variety of prime financial products, including leasing, ’09 32 personal loans, and mortgages. Most of our collateral for loans is automobiles ’08 14 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.
    • 12 13Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010CEO’s MessageHyundai Card also posted stable increases in terms of market share and number We are also striving to build a more efficient corporate culture, including Sound Asset Portfolio Excellent Asset Qualityof customers. We have ranked second among Korean credit card issuers in terms expedited decision-making and actions and more open and easierof total sales volume since the second quarter of 2009, and second in the industry communications. Hyundai Capital Hyundai Capital(including bank credit card divisions) in terms of credit purchases since 2009. 2010 Total Financial Assets (In billions of won) 2010 Over 30 Days Delinquency (%)Our number of cardholders exceeded 9.8 million as of the end of 2010, based on Our decision-making system is now so streamlined that our CEOs can approvepersonal card usage amounts. 18,721 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- 1.6%The issuance of the “Platinum 3” series, which added practicality to its platinum wide impact, everyone should speak, and the decision should be made atservices, exceeded 24,000 cardholders only four weeks after its launch in Asset Portfolio that meeting. Over 30 Days Delinquency (%)November 2010, with monthly spending per cardholder averaging 2.5 million won. ’10 81.4% 18.6% 18,721 We are further improving our corporate culture through a “360-degree corporate ’10 1.6 16,480Hyundai Commercial’s operating income and net income ballooned by 243.1% and ’09 81.1% 18.9% culture assessment project” while revamping our entire organizational structure ’09 1.8 79.5% 20.5% 16,030 ’08231.4%, respectively, over the year, thanks to careful asset management based ’08 to the most efficient level. We are also committed to disseminating our 2.3 ’07 82.3% 17.7% 15,130 ’07 1.6on its auto financing portfolio. corporate culture overseas by operating a human resources exchange program ’06 87.1% 12.9% 13,472 ’06 1.7 in conjunction with Hyundai Capital America (HCA), which we operate on behalfAuto financing holdings made up 85% of its total assets, due to a business  Car Business  Non-Car Business of Hyundai Motor Group.structure that is markedly different from that of other companies that specializein the credit financing business. It maintained a healthy portfolio of financial Another improvement is to make our company buildings more employee-friendly.assets, with corporate financing and PF and similar assets accounting for less For example, The Box, an employee cafeteria, and our auditorium were both built Hyundai Card Hyundai Cardthan 20% and 10%, respectively, of the total. This is due to its policy of strict and as employee rest spaces and open venues for enjoying cultural events, such as 2010 Total Financial Assets (In billions of won) 2010 Over 30 Days Delinquency (%)strategic asset management. “Super Talk.”Overall, we achieved our best-ever results in 2010. This was based onour preemptive customer services, a creative corporate culture, and 9,186 Through this distinctive corporate culture, Hyundai Capital, Hyundai Card and Hyundai Commercial are maximizing the individual abilities of their employees, 0.4%preparation for global growth. In addition, we enhanced our corporate social while winning recognition for our value from global companies and opinion Asset Portfolio Over 30 Days Delinquency (%)responsobilities through our “Talent Donation” social contributions activities, leaders.and continued extending boundaries within the industry. ’10 65.7% 34.3% 9,186 ’10 0.4 ’09 74.2% 25.8% 7,136 ’09 0.3 ’08 72.9% 27.1% 5,616 ’08 0.7 ’07 74.1% 25.8% 4,507 Future-oriented customer ’07 0.4A leader in corporate culture 3,508 satisfaction services ’06 77.6% 22.4% ’06 2.2  Credit Purchases  Financing ProductsHyundai Capital, Hyundai Card and Hyundai Commercial are creating rules for a Hyundai Capital, Hyundai Card and Hyundai Commercial proclaimed 2009new type of corporate culture, whereas existing ones have merely remained at “Customer Solutions (CS) Year,” with an emphasis on maximizing customerencouraging job performances, arousing a sense of community, and providing solutions. The term “customer solutions” refers to proactive and preemptive Hyundai Commercial Hyundai Commercialemployee benefits. CS strategies that reduce the likelihood of complaints by responding to our 2010 Total Financial Assets (In billions of won) 2010 Over 30 Days Delinquency (%) customers’ voices promptly and putting innovative services in place in advance. 2,333 1.0%The “PRIDE,” a core value of our corporate culture, denotes our pride as membersof organizations that are growing into global financial players. In order for these CS strategies to be implemented throughout the company, our first priority was to efficiently share “problems,” namely customer complaints.We hire high-caliber human resources in various areas, and have the nation’s Asset Portfolio To this end, we installed a “Wailing Wall” inside The Box last year. It features Over 30 Days Delinquency (%)largest number of employees with experience outside of the financial sector. “no-holds-barred” criticisms registered on our call centers and websitesWe also take pride in our in-house “Career Market,” an internal posting system ’10 85.4% 14.6% 2,333 ’10 1.0 regarding our services and operations.where our employees apply for a job or literally put up themselves for sale. A full ’09 86.5% 13.5% 1,483 ’09 0.970% of our personnel shifts are made through this innovative system. ’08 77.8% 22.2% 1,050 We have also operated a unique and innovative “CS portal.” It provides ’08 2.1 ’07 89.1% 10.9% 822 ’07 information on the current level of customer complaints and satisfaction in the 1.9  Car Business  Non-Car Business
    • 14 15Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010CEO’s Messageform of weather charts: fair, partly cloudy, cloudy, rainy, and stormy. In addition, had closely studied how our customers actually use their cards. Besides being Conservative Provisioning Policy Well-Diversified Funding Portfolioour management teams are also involved in calling customers to deal with their very successful, the process of their development from concept to delivery wasproblems and resolve their grievances. As a result of these efforts, we were able judged to be both innovative and ground-breaking. Hyundai Capital Hyundai Capitalto make three thousand improvements to our systems during the year. Actual 2010 Reserve/Regulatory (FSS) Guideline (%) 2010 Funding Portfolio We also provide our customers with opportunities to enjoy rest and relaxationAfter bringing up the question on “Customer Solution” in 2009 and putting thesemeasures in place in 2010, we will spend 2011 verifying them. We will see how 118.1% through new and meaningful cultural activities in diverse genres, including concerts, exhibitions, and sports events. ABS 16.5%much our customer services and systems have improved, and begin to align Loansour solutions preemptively. Preemptive solutions are our pledge that we will be For example, we have hosted “Super Match,” a competition featuring sports 7.4%  FSS Guideline vs.  Actual Reserve (In billions of KRW)more adept at looking at our services from the viewpoints of our customers and superstars; “Super Talk,” in which Korean and overseas celebrities share their CP 8.5% ’10 401 478 118.1% thoughts on a variety of topics; and “Super Concert,” with performances by Bondsreflecting them when we introduce new products. 67.5% ’09 288 442 153.2% world-famous artists. These activities are part of our efforts to genuinely ’08 282 427 151.6%One result of these efforts was the launch of our new Platinum card series in connect with our customers. ’07 246 398 161.5%2010. We have received very favorable responses from our customers to theseproducts, all of which were developed through exhaustive CS pre-screening and ’06 306 461 150.4% Since the development of our own typography in 2004, we have deployed • aintainingtheABSandCPportiontowithin M integrated branding strategies in which our brands market themselves. We are 20% and 10%, respectivelytesting, instead of releasing products first and then modifying services based • ong-termborrowings:63.5% Lon customer responses. Other products that we have introduced include “MY consistently reflecting our corporate identity (CI) at our cultural events and • verseasborrowings:36.4% OBUSINESS,” which combines loans with comprehensive business supports. This advertisements and other activities.widened range of products and enhanced customer communications shows our Hyundai Card The successful creation of these unrivalled brands has allowed Hyundai Hyundai Cardcommitment to developing more advanced customer solutions. Actual 2010 Reserve/Regulatory (FSS) Guideline (%) Capital, Hyundai Card and Hyundai Commercial to deploy a branding philosophy 2010 Funding PortfolioWe also increased the number of our Finance Shops to twenty-three and plan toadd twenty-one more by the end of 2011. These are new-concept spaces that 127.7% that genuinely communes with their customers and offers them distinctive experiences. Loans 10.1% ABS 7.2%allow us to deliver our financial services in a more personal and comfortable  FSS Guideline vs.  Actual Reserve (In billions of KRW) CPmanner. Customers can also request advisory services through its website, with 9.1%an advisor contacting them within a maximum of four hours. In addition, variouscultural and educational programs are carried out in these venues, winning ’10 148 ’09 114 142 189 127.7% 123.9% Global growth with a unique model Bonds 73.6%favorable responses from our customers. ’08 94 135 143.3% Improving Hyundai Capital’s global business capabilities has also become one of ’07 52 104 200.4% our must-dos, since Hyundai Motor and Kia Motors are both faring well in theAlthough anyone can imitate our marketing campaigns, designs, and ’06 89 158 178.1% world market. Hyundai Capital is seeking more strategic and profitable overseas • aintainingtheABSandCPportiontowithin Madvertisements, the competitiveness of our CS and operations cannot be business opportunities, breaking away from conventional methods of advancing 20% and 10%, respectivelyreplicated. These differentiated CS strategies will ensure that Hyundai Capital, internationally. We are taking a variety of steps to ensure that we will be as • ong-termborrowings:56.5% LHyundai Card and Hyundai Commercial enjoy stronger competitiveness in 2011. • verseasborrowings:6.4% O successful overseas as we are at home within five years. Hyundai Commercial Actual 2010 Reserve/Regulatory (FSS) Guideline (%) We have been supporting the management of Hyundai Capital America in the Hyundai Commercial US since 2007. Based on our solid network, the company achieved impressiveInnovative Marketing 168.0% 2010 Funding Portfolio growth, including doubling the size of its assets. Unlike other Korean financial ABS companies which focus heavily on servicing Korean customers living abroad, we 8.1%Hyundai Capital, Hyundai Card and Hyundai Commercial are implementing provide services to local citizens. Loansinnovative marketing ideas in a wide variety of areas, including the business 18.2%  FSS Guideline vs.  Actual Reserve (In billions of KRW)realm and cultural activities, based on creativity and a spirit of challenge. We also strengthened our international network by successfully advancing into ’10 16 26 168.0% Europe in 2009. This was done by enhancing our relationship with Santander, BondsIn terms of business, we analyzed what sort of products our customers would ’09 10 22 222.8% CP 60.6% a member of the leading consumer finance house in Europe and a leader in the 13.0%find most useful. ’08 10 17 179.7% ’07 5 15 286.0% field of auto financing.As a result, we launched customer-centered, signature products. These include In China, the world’s biggest automobile market, we are in the process of“the Black,” Korea’s very first VVIP credit card; “MY BUSINESS,” an integrated • aintainingtheABSandCPportiontowithin M obtaining the government’s approval for the establishment of a joint venture 20% and 10%, respectivelysolution for small businesses that provides business support as well as loans; with our local business partner. In addition, we opened an office in India in 2010, • ong-termborrowings:60% Land the Platinum 3 series credit cards, which were only introduced after we
    • 16 17Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010CEO’s Messageand plan to do the same in Brazil very soon. These steps will allow us to evolveinto a truly global financial company boasting strong local partnerships. Management strategies for 2011 Our strategic goals are to boost our capabilities by more than 50% and continue strengthening theWe are also dedicated to nurturing human resources (HR) for multilateral consolidation of our two companies. This will be done by hiring and nurturing human resourcesoverseas expansion, mainly by enhancing their global capabilities. This includes who have a global outlook, and by basing our operating decisions on three-year plans instead ofan exchange program through which our overseas employees at Hyundai Capital short-term outlooksAmerica come to work in Korea. Going forward, we will use Hyundai CapitalAmerica as an “advance post” for our overseas expansion activities and an HR Hyundai Capital, Hyundai Card and Hyundai Commercial are both widely recognized for theirtraining center by sending employees in all the operating areas at our head leadership in the Korean financial industry. Innovations instituted by challengers (as we used to beoffice there. ourselves) are self-innovations, but innovations instituted by leaders are made for the good of the industry as a whole.Our flexible approach to local business conditions and the excellence of ourhuman resources will work in tandem to add to our value in world markets, We will continue to create new rules for the finance industry, and open up and lead markets withwhile strengthening our profile as a truly global financial company with a unique new rules. One of our new rules is “coexistence and balance.” Rigorous risk management andand highly innovative corporate culture. 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.Citizenship If we spend our marketing expenses effectively, it will lead to a reduction in our debt expenses, and ultimately result in overall savings.Hyundai Capital, Hyundai Card and Hyundai Commercial support communitiesthrough a program called “Talent Donations.” We utilize our strengths in Risk management and marketing are both aspects of growth and stability. Their inherent harmonymarketing and financial services to help the underprivileged and the society will be evident in our products and services. The success of the Hyundai Card Premium 3 Series hasat large. been made possible by the harmony of two seemingly conflicting values: “premium” and “practical.”For example, the “Hyundai Motor Group Smile Microcredit Foundation” helps Hyundai Capital, Hyundai Card and Hyundai Commercial are thinking in the long-term, decidingthe financially underprivileged to stand on their own through our “Smile what kind of companies they want to be three years down the road. In our role as rule creators,Learning Center,” “Smile Supporters,” and its “Realize Dream” project. In we must look to a greater future, rather than concentrating on competition within the industry.addition, the foundation extends loans to North Korean defectors to assist Even though we are much bigger than we used to be, we will continue to rely on the strongthem with business startups, while operating training programs through an points that we used to grow when we were a smaller operation. We will keep growing “beyondagreement with the Ministry of Unification. boundaries” in all areas of the Korean finance industry, while stretching our wings to advance intoThe “Art Shelter,” a new public transit center at Seoul Station that we donated the rest of the world at the same time.last year, received an International Design Excellence Award (IDEA), an iF Dear investors and customers:design award, and a reddot design award. Combining art and technology, itadds practicality and aesthetic values to this public facility. 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 byHyundai Card sends Korean art majors to intern at New York’s Museum of accelerating the consolidation of the two companies--one of our primary branding strategies. WeModern Art in the spring, summer, and autumn, helping them gain valuable will always operate from the viewpoint of our customers, in order to become their favorite brands.international experience. Thank you.Hyundai Capital, Hyundai Card and Hyundai Commercial will carry out morecorporate social responsibility (CSR) activities in 2011. Instead of relyingon donations, we will implement ongoing and substantial CSR activities bydiversifying and systematizing our CSR areas, such as culture and the arts,finance, and services for the underprivileged--all based on the principles of Ted Chung“Talent Donation,” “Volunteerism,” and “Self-Support.” President & CEO Hyundai Capital, Hyundai Card and Hyundai Commercial
    • 18 19Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Highlights Customer01 Solution Providing one-step-ahead solutions for customer needs 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. Platinum3 Series MY BUSINESS
    • 20 21Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010 CultureHighlights02 Marketing Redefining the financial business beyond boundaries 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. Super Concert Super Match
    • 22 23Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Highlights03 Global Growth Advancing into the world with global capabilities 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. 2010 Global Site Visit Hyundai Capital America Office Building
    • 24 25Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Highlights04 Citizenship Broadening the meaning of social contributions through “Talent Donation” 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. Internship at MoMA in New York First “Realize Dream” Store
    • 26 27Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 20102010 At a Glance January March May July October November Fitch Ratings raises Hyundai Card’s Hyundai Commercial selected as Launches Hyundai Card T Launches Direct Loan personal loans Opens Hyundai Motor Group Smile Issues sixth edition of Samurai Bonds credit rating outlook “Financial Lease Service” Launched a credit card that offers both Launched Direct Loan, available by phone Microcredit Bank’s first “Realize Dream” Succeeded in the issuance of 30 Fitch Ratings, a well-known international Power Brand Company mileage accumulation and travel benefits. or online without bothersome delays. store billion worth yen of Samurai Bonds. credit ratings agency, raised Hyundai Organized by the Seoul Economic Daily, The Hyundai Motor Group Smile Microcredit This demonstrated that we had won Hosts “Hyundai Card Super Concert 09 - Supports business startups by North Card’s credit rating from “BBB (Stable)” this honor was bestowed in recognition Bank operates a “Realize Dream” project recognition for our capabilities in the Andrea Bocelli” Korean defectors to “BBB (Positive).” of the company’s decision to position along with its “Smile Learning Center” to Japanese fund market through the Hosted Hyundai Card’s ninth Super The Hyundai Motor Group’s Smile itself as a specialist in the field of lease help small businesspeople support issuance of yen-denominated bonds on Publishes “Zagat Seoul Restaurants Concert, featuring Andrea Bocelli, an Microcredit Bank and the Korean Ministry financing for industrial machinery that themselves. In October, the center opened five separate occasions. 2010” Italian tenor and classical cross-over artist of Unification provided loans and training individuals or corporations need to carry the project’s first store, “Sunlight Farm,” Published a guidebook on leading with a heavenly voice. programs to support business startups by Fitch Ratings raises credit rating to on their businesses. a fruit store in Hongje-dong, Seoul, restaurants in Seoul in cooperation with North Korean defectors. “BBB+ (Stable)” following the store’s renovation and Zagat, a world-wide provider of guides Credit ratings were adjusted upward Hosts “Hyundai Card Super Concert 10 - management consulting. for hotels, nightlife, shopping, zoos, by one notch to “BBB+ (Stable)” from music, movies, theater, golf, and airlines. April June Usher” Launches MY BUSINESS secured loans “BBB (Positive)” by Fitch Ratings, an Hosted Hyundai Card’s tenth Super Concert for commercial leases internationally-recognized credit rating Hosts Hyundai Card Super Concert 07 - featuring Usher, an American R&B star. Opens the “Smile Learning Center” Number of lease and rental vehicles Launched “MY BUSINESS Secured agency. Green Day at Hyundai Motor Group Smile exceeds 100,000 Launches Network Loan by Hyundai Loans for Commercial Leases,” enabling Hosted the first concert in Korea by Launches Platinum 3 Series Microcredit Bank The number of Hyundai Capital’s lease Commercial customers to access loans for business Green Day, a Grammy Award-winning rock Launched “Platinum 3 Series (M3, H3, R3, The goal of the Smile Learning Center is to and rental vehicles exceeded 100,000, a Launched “Network Loan” that lends startups and operating funds using their trio from the US. T3),” redefining the meaning of platinum offer the financially underprivileged advice first for the industry. money for purchasing components to apartment or house lease deposits as cards. on business start-ups and other ways of business partners of Hyundai Motor and collateral. This was a first for the industry. Hosts “Hyundai Card Super Match 10 - empowering themselves. This is done Kia Motors. Enters into partnership for “green February through lectures and consulting. Medalist on Ice” A gala show featuring figure skating Launches “MY COMPANY” card finance” with Korea Finance Corporation Launched “MY COMPANY” corporate card, Launched “Green Loan” in alliance with Establishes Hyundai Capital Germany Launches Hyundai Card smartphone apps Launched a Super Concert application medal winners from the Vancouver Winter Olympics, including Evan Lysacek, August offering holders a wide range of custom- tailored benefits. Korea Finance Corporation, offering low Established a joint venture in Germany interest rates to customers who purchase and a Hyundai Card application. They can Evgeni Plushenko, and Asada Mao. by entering into a strategic alliance with Hosts “Hyundai Card Super Concert 11 - Hosts “Super Talk 01 - environmentally friendly buses. be used to confirm payments, approved Santander Consumer Finance. One goal of Stevie Wonder” Innovations in Art” amounts, the usage of points, and others. this move was to forward the company’s Hosted Hyundai Card’s eleventh Super Hosted “Super Talk,” a new-type talk advance into Europe. Another was to Publishes “Seoul: A Monocle City Survey” July Concert. The featured artist was Stevie program with “Innovation in Art” as December provide auto-financing services for Kia Published “Seoul: A Monocle City Survey,” Wonder, an American musical legend its topic. The participants included Motors customers in Germany, covering the city’s design, fashion, food, Named one of the best companies to Glenn D. Lowry (the Director of MoMA), Enters into partnership with The Opens “MY BUSINESS Zone” tourism, and cultural amenities. Created in work for in Korea Barry Bergdoll (the Chief Curator of Hosts Hyundai Card Super Concert 08 - Museum of Modern Art (MoMA) Opened “MY BUSINESS Zone,” an offline collaboration with Monocle, an influential Named one of the ten best companies Architecture and Design at MoMA), Whitney Huston Concluded a partnership agreement with counseling center for self-employed U.K.-based lifestyle magazine. to work for in Korea. Also ranked first photographer Kim Jung Man, pianist Ji Hosted a concert by the legendary pop diva, MoMA, a cradle of modern art. It involved businesspeople. in the “card and capital” category in Yong, and film director Lim Sang Soo. Whitney Huston internships by Korean arts students and the K-Great Work-Place Index (GWPI) Korea’s top 3 credit rating agencies exchanges of exhibitions and curators. Hosts “Hyundai Card Super Concert 12 - May survey conducted by Korea Management Association Consulting (KMAC) Itzhak Perlman” upgrade Hyundai Commercial’s credit rating “Art Shelter” wins three world-leading March design awards Hosted a recital by world-renowned violinist Itzhak Perlman. Hyundai Commercial’s credit rating Issues 125 billion won worth of Launches MY BUSINESS Franchise Loans The “Art Shelter,” a stylish bus shelter at was raised to “AA- (Stable)” from “A+ Malaysian ringgit bonds Launched “MY BUSINESS Franchise Loans” Implements “Customer Grievances Seoul Station that we donated to the city Hosts Hyundai Card Super Match 11 - (Positive)” by NICE Investors Service, Issued 125 billion won worth of Malaysian for Hyundai Capital and Hyundai Card Settlements by Management Program” of Seoul, won the world’s top three design Novak Djokovic vs. Andy Roddick Korea Ratings, and Korea Investors ringgit bonds following upgrades in credit franchisees, offering them 10% lower Began operating a CS program in which awards from the International Design Hosted a match between tennis superstars Service. ratings by a number of overseas agencies. annual interest rates than those granted management helps to settle customer Excellence Awards (IDEA), iF, and reddot. Novak Djokovic and Andy Roddick. for general business funds. grievances. This is just one example Hosts “Hyundai Capital Invitational 2010: They played a surprise match in front of our of our commitment to customer-first BBC Symphony Orchestra” JCR and RAM adjust credit ratings and head office in Yeouido, Seoul before the management, taking the initiative and Hosted the BBC Symphony Orchestra’s business outlooks upward September Super Match. approaching customers first. rendition of the BBC Proms. Credit ratings were upgraded to “A (Stable)” from “A- (Stable)” by JCR, Opens Lounge at Incheon Airport Hosts “Hyundai Capital Invitational 2010” Launched voice recognition automatic Japan’s largest credit rating agency, and Opened a lounge for Hyundai Card Hosted a Korea-Japan professional golf response system (ARS) service to “AA1 (Positive)” from “AA1 (Stable)” customers to provide them with enhanced competition, participated in by leading Launched Korea’s first-ever ARS voice by RAM, Malaysia’s leading credit rating travel services. professional golfers from both nations. recognition service. This refers to a system agency. that recognizes customers’ voices and links them to the service(s) they want to use. Hyundai Capital  Hyundai Card  Hyundai Commercial  Hyundai Capital & Hyundai Card
    • 28 29Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Overview 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 Overview 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. Hyundai Capital, Hyundai Card & Hyundai Commercial Overview 30 Hyundai Capital Products 34 Hyundai Card Products 38 Hyundai Commercial Products 42 Hyundai Capital Milestones 44 Hyundai Card Milestones 46 Hyundai Commercial Milestones 48 Global Presence 50 Directors & Executives 52 Independent Auditor’s Report
    • 30 31Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Products OverviewHyundai Capital Hyundai Capital Products Overview Auto Financing Auto Financing Personal Loans Mortgages Loans Autoplan New Car Program (Autoplan) Direct Loan Prime Mortgage Loan (Prime Mortgage) A new car purchasing program for Hyundai Personal loans that can be accessed quickly A loan product that allows borrowers to and Kia cars, ranking first in the Korean and conveniently without the need for use up to 85% of their home’s market auto financing market complex documentation or on-site visits value as collateral Autoplan Used Car Program (Autoplan) Prime Loan Prime Mortgage Loan Using Key Money A leading used car installment payment Personal loan products that can be as Collateral (Prime Mortgage) program, which come with warranties conveniently obtained through visiting Loan A loan product that allows customers to Planners following consultations use up to 80% of their apartment or home KlassAuto Auto Leasing (KlassAuto) lease deposits as collateral for personal A leading Korean auto lease program, or business needs offering drivers exclusive management Personal Loans services, equipped with the best repair and Prime Mortgage Demand Deposit maintenance system Account A home loan product that acts like a line KlassAuto Long-Term Rental Car Program of credit, allowing customers to make (KlassAuto) deposits and withdrawals on demand 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 Mortgages Loans vehicle purchasing through the vehicle’s maintenance to the car’s eventual sale Self-Employed Customer Services Corporate Events Business Financing Business Loan PLUS+ Membership Invitational A loan product that allows self-employed A financial life protection service that is Corporate events that support culture and businesspeople to borrow for operating provided free to Hyundai Capital customers, the arts and lesser-known sports. Another Self-Employed Business Financing funds this is a first for the Korean finance first for the industry. industry Business Leasing and Car Rental A car leasing and rental product that Auto Inside Spur-of-the-moment concerts held allows customers to access professional A portal (www.autoinside.co.kr) that downtown, giving busy passersby a chance maintenance services provides shoppers with information on to rest and relax used cars offered for sale, vehicle accident Business Credit Card histories, and financing and insurance A customized card product for self- options employed businesspeople Finance Shop Business Insurance A venue that enables customers to access A business insurance product that ensures Hyundai Card and Hyundai Capital’s safety in operations by self-employed financial services quickly and conveniently businesspeople
    • 32 33Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010 Finance Shop Finance Shops These new-concept financial outlets enable Finance Shop Services - Business loansProducts New-concept, super-convenient customers to conveniently access a wide - Credit loans financial branches offered by Hyundai range of financial products and services - Home loans Capital and Hyundai Card offered by Hyundai Capital and Hyundai Card. - Auto leases In addition to helpful and friendly assistance, - Long-term car rentals visitors receive many other special benefits. - Credit card applications and renewals - Gift card salesHyundai Capital Products - M Point redemptions Auto Financing Autoplan New Car Program (Autoplan) A new car purchasing program for Hyundai maintenance program. We offer a total solutions package that covers vehicle We provide customers with auto and Kia cars, allows customers to choose purchases, maintenance, insurance, and after- financing and leasing products that repayment periods and methods that are sales. Additional services are provided to the Invitational Invitational Hyundai Capital has hosted a series of “Stop & Listen” refers to spur-of-the- answer their every need, based on tailored to their individual needs. They include owners of luxury models, such as the Hyundai corporate events called “Hyundai Capital moment concerts that give busy passersby a “125% program” through which customers Equus or 5G Grandeur. the Hyundai Motor Group’s specialized Invitational” with the purpose of seeking out a chance to rest and relax through music, can access loans for expenses as well as the Providing corporate events that support vehicle management services and supporting innovative sports, cultural and culture, and the arts. In 2010, they included cost of the vehicle, and a long-term repayment KlassAuto Long-Term Lease (KlassAuto) culture and the arts and lesser-known art areas, a first in Korea. a concert by pianist Ji Yong in April and and knowledge. program (termed over forty-eight months or A long-term rental car product that includes sports, another first the industry Beginning with the 2007 “Tour de Korea” bike opera performances in December. more) that lowers their monthly payments. professional maintenance services, race featuring Tour de France winner Lance Returning customers are offered additional unrestricted mileage, and the use of LPG fuel. Armstrong, this program has contributed to benefits, such as visiting vehicle check-ups. We also offer a money-saving, long-term car increasing the public’s interest in such lesser- rental product for office workers. known sports as cycling and gymnastics. Autoplan Used Car Program (Autoplan) It also extends to cultural events, including The nation’s number one used car loan KlassAuto Corporate Auto Leases/Rentals concerts. In 2010, we hosted a Korea-Japan product, featuring a 5,000 km/five-month (KlassAuto) warranty covering major components, has won professional golf competition. A lease and rental car product for corporate recognition for its economical efficiency and customers that manages all vehicle convenience by many customers. ownership processes, from purchasing and operating and maintenance to after-sales. KlassAuto Lease (KlassAuto) Users of this service also receive a special Korea’s best auto lease product, featuring corporate card that provides customer points MY BUSINESS MY BUSINESS MY BUSINESS offers self-employed Business Analyses We provide a wide range of capital around-the-clock management services backed and discounts on fuel. Providing total financial solutions to businesspeople such financial products as a management solutions, sales analyses, by the country’s finest repair and self-employed businesspeople business credit card, business loans, business- business location analyses, and value- oriented leasing and rental cars, and business added tax return report solutions that insurance. Other features include business allow self-employed businesspeople to analyses and a transaction assistance service. analyze their operations and predict their Personal Loans Direct Loan Personal loan product that can be accessed Prime Loan Personal loan product whose reliability possibility of success. Business Credit Card We heighten customer satisfaction by quickly and conveniently by phone (including and security has been verified by the This card provides business owners with MY BUSINESS application providing door-to-door services and smartphones) or online without the need for industry. Customers enjoy a wide variety “must-have” benefits, including high credit limits, The MY BUSINESS smartphone application custom-tailored products. complex documentation or visits. Users can of benefits, such as a loan waiver service low interest rates, help with value-added tax provides self-employed businesspeople with check their maximum loan limits without it and one-stop financial services—including returns, and no-interest installment payment sales analyses, video training, and business- affecting their credit ratings. consultations and applications at a place plans for the first two-three months related news and information. of the customer’s choosing. at participating business establishments. MY BUSINESS Zone Business Loan MY BUSINESS Zone, an offline consultation This product allows self-employed center, provides self-employed businesspeople to access working capital using businesspeople with business supports and their credit, homes, or commercial facilities as advice on financial products and taxes. collateral. Marketing Supports Business Auto Leasing/Renting We offer a “MY BUSINESS event text service” Mortgages Loans Prime Mortgage Loans (Prime Mortgage) Customers can borrow up to 85% of their as collateral for loans for their personal or business needs. MY BUSINESS cardholders can pay their lease and “MY BUSINESS PR site solutions” to help Mortgage loans offer customers home’s market value and take up to thirty or rental car charges with their M points, and businesspeople improve their sales. receive gift vouchers and rewards when they convenience and products tailored years to repay the loan. Loans can be used for Prime Mortgage Demand Deposit Account business purposes or to pay off the balance This home loan product acts like a line rent or lease a car from Hyundai Capital. Knowledge and Information to fit their individual needs and owing on a home. of credit, allowing borrowers to make We provide tax and legal advice to help financial positions deposits and withdrawals on demand. Loan Business Insurance businesspeople run their operations better Prime Mortgage Loan Using Key Money as applications can be made quickly and easily This auto and general insurance policy for and more efficiently. Collateral (Prime Mortgage) through ATMs, telephone, or the Internet. business owners guards against accidents This product allows customers to use up to 80% There is no charge for early repayments. that can happen while they are operating their Transaction supports of their apartment or home lease deposits businesses. Damages are covered within a We provide self-employed businesspeople predetermined limit. with a wide range of solutions for safe and convenient transactions and tax reductions.
    • 34 35Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Products OverviewHyundai Card Hyundai Card Products Overview Premium Platinum Alphabet the Black M3 A platinum card featuring M A popular multi-purpose card Korea’s first-ever VVIP card, targeting the additional benefits of M, allowing drivers, diners, air the top 0.05% of the country’s including the nation’s largest travelers, and shoppers high- income earners automobile and refueling to accumulate multi-use points discounts the Purple M A card especially designed for A VIP card targeting the top 5% most H3 A platinum card with the Lady women, adding shopping, beauty, prosperous South Koreans added benefits of H, including and child care discounts to the the country’s best family life regular M points benefits for the Red benefits automobiles, refueling, dining, and A luxury card for the professional elite other services R3 A platinum card with the added convenience of R, including the V A multi-purpose discount card nation’s best shopping benefits offering benefits for using discount stores, gas stations, T3 A platinum card with the convenience stores, taxis, and additional benefits of T, including online shopping the nation’s best air and travel benefits H A family-oriented card offering discounts at cram schools, M2 A practical platinum card hospitals, and pharmacies featuring multi-point benefits and platinum services O A card for car owners, offering discounts at gas, diesel, and LPG M2 A platinum card exclusively stations Lady for women, with multi-point benefits and platinum services R A shopping rewards card, offering points worth up to 10% of every A2 A platinum card featuring Asiana purchase, exchangeable for gift Airlines mileage accumulation certificates benefits and platinum-level services T A travel card offering both mileage accumulation and travel K2 A platinum card featuring benefits Korean Air mileage accumulation benefits and platinum-level Post- A toll card that can be used services Paid, after payment for extra user Hi- convenience Pass MY BUSINESS Diners/Check Service the Red , M2 , M , O Diners Hyundai Card Club Service These cards enable self-employed Featuring Diners Club Privilege Services Offers platinum and other high-level businesspeople to enjoy MY BUSINESS and free access to Diners Club International cardholders discounts worth up to 10-20% service. They offer all the benefits of the Airport Lounges at hotels, restaurants, wine bars, and spas alphabet card line across the country C Point A debit card for making easy purchase Hyundai Card PRIVIA payments Offers cardholders access to cultural and leisure activities C Discount A debit card offering cash-back services for frugal consumers
    • 36 37Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010ProductsHyundai Card Products Premium the Black Korea’s first-ever VVIP card, the Black the Purple This is a VIP card targeting Korea’s top 5% of PRIVIA PRIVIA The Hyundai Card PRIVIA brand enriches Partnership with MoMA Hyundai Card signed a three-year partnership Adding value to high-income introduced “the black liquid metal plate” income earners. Its voucher service, combining Enhancing lifestyle services through customers’ lifestyles by offering them exclusive agreement with MoMA in July 2010. It included lifestyles through upgraded products in 2011 by adding liquid metal, a cutting- high-end luxury and lifestyle trends makes this expanded global partnerships access to global lifestyle brands, including the internships by Korean arts students and and services edge nano material, to its credit cards. The card “the one to have” in the VIP market. MoMA Online Store Korea. Cardholders can also exchanges of exhibitions and curators. card offers users a broad array of premium enjoy especially themed tours, world-class As part of this partnership, Hyundai Card services, such as free upgrades to first-class the Red performances, camping, yachting, horseback sponsored the “Abstract Expressionist New seats at domestic airlines, 5 million won gift This is a luxury card for members of the riding, and a limousine service for special York” exhibition held at MoMA in September vouchers that can be used at luxury brand professional elite who are passionate about occasions. 2010, and the director of MoMA visited Korea stores and five-star hotels, and access to their careers and their lifestyles. Its rewards to participate in Hyundai Card “Super Talk” as cultural events through “Time for the Black” include airline mileage and gift card points. “Seoul: A Monocle City Survey” for the Seoul a speaker. In addition, three Koreans passed and “Super Series.” G20 Summit the MoMA internship program for 2011 spring In 2010, we produced a welcome package, semester. Hyundai Card aims to contribute to consisting of the English-language versions of the development of the fine arts at home and “Seoul: A Monocle City Survey” and “Zagat Seoul abroad through the partnership. Restaurants 2010” to be placed in hotels where Platinum Hyundai Card M3 Platinum The card doubles the accumulation of M points Hyundai Card R3 Platinum This card lets users accumulate M points and participants at the Seoul G20 summit stayed Hyundai Card Air Lounge and at media centers inside its event sites. Hyundai Card provides platinum and higher- Offering users Korea’s finest that offer diverse multi-point benefits for provides enhanced shopping benefits, including Readers could learn about companies in Seoul, grade cardholders with a space for rest and services and benefits through the automobiles, refueling and dining anywhere, up to 10% discounts at department stores and the environment, and Korean culture, including relaxation by operating an air lounge at Platinum 3 series while providing platinum services such as the accumulation of a maximum of 10% of your design, architecture, the media, music, movies, Incheon Airport. They can rent a variety of maximum KRW 120-per-liter discounts at gas purchases at other shopping places. It also fashion, and cuisine. travel goods free of charge through touch and LPG stations, air ticket discounts, and offers a diversity of platinum services including screen-type vending machines or by using club services. air ticket discounts and club services. Zagat guidebook on Seoul restaurants their M points. Travelers who like to read can Hyundai Card published “Zagat Seoul peruse Monocle, guidebooks by Zagat and the Hyundai Card H3 Platinum Hyundai Card T3 Platinum Restaurants 2010” in cooperation with Zagat, German-based art book publisher Taschen, This card lets users accumulate M points and This card lets users accumulate M points and a world-wide provider of guides for hotels, “Martha Stewart Living,” or works by the offers a wide range of family-style benefits, provides both mileage and free air tickets for nightlife, shopping, zoos, music, movies, theater, Japanese media artist Hiraki Sawa. including up to 10% discounts at cram travel companions. golf, and airlines. Its purpose is to serve as an schools, hospitals, and pharmacies. authoritative primer on Korea’s food culture. Alphabet Hyundai Card M This representative credit card of Hyundai Hyundai Card O This card offers discounts at gas and LPG Super Series Hyundai Card Super Match Hyundai Card Super Concert In 2010, Hyundai Card again invited leading Hyundai Card Super Concert is a wonderful Continuously growing by offering Card was the first in Korea to attract more stations. Users can save up to KRW 60 per liter Suggesting new paradigms sports superstars to participate in “Super way for Koreans to enjoy world-class users a wealth of benefits and than eight million users. It offers multi-point at gas stations and up to KRW 30 per liter at benefits for automobiles, refueling, dining, LPG stations. for marketing sports and Match.” We held a gala show called “Medalists concerts without having to leave the country. customized services on Ice” in June, featuring Vancouver Winter In 2010, we featured performances by Green aviation, and shopping. cultural activities Hyundai Card R Olympics figure skating medalists Evan Day, Usher, Stevie Wonder, Whitney Huston, Hyundai Card V This shopper’s card lets users accumulate Lysacek, Evgeni Plushenko, and Asada Mao. Andrea Bocelli, and Itzhak Perlman. The This multi-purpose discount card offers users up to 10% of the amount of their purchases. In October, we hosted a match between tennis series is increasing its value by expanding increasing benefits with frequency of use. Launched in 2009, it is now rated number one stars Novak Djokovic and Andy Roddick. They genres to include classical music, and by Discounts of up to KRW 50,000 are available in terms of quality service by female consumers. also played a surprise match in front of our providing lively performances to and various on a monthly basis, according to the card The points can be used at department stores, head office building in Yeouido, Seoul. benefits for the public. usage amount for diverse areas including discount stores, and online shopping malls, shopping, dining, refueling, coffee, convenience as well as for refueling and Hyundai Card Gift Hyundai Card Super Talk stores, taxis, movies and amusement parks. Cards. Hyundai Card Super Talk is a program in which Korean and overseas celebrities share their Hyundai Card H Hyundai Card T thoughts on a variety of topics, including This family-type discount card provides This is a travel card that offers users both culture, the arts, and business and management. up to 10% discounts for cram schools, mileage accumulation and travel benefits. Our guests in 2010 included Glenn Lowry, the telecommunications, hospitals, and Korean Air miles are added with every use, and director of MoMA, the photographer Kim Jung pharmacies, as well as savings at discount duty-free shop gift cards and free domestic Man, and the film director Im Sang Soo. stores, amusements parks, and for refueling air tickets for travel companions are available and dining. based on annual purchase totals.
    • 38 39Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Products OverviewHyundai Commercial Hyundai Commercial Products Overview Industrial Financing Corporate Financing Investment Financing Industrial Financing Instalment plans for commercial vehicles Corporate loans Private equity investments and construction machinery Provide loans to companies using their An efficient tool to secure funds for facility New installment Used car loans Machine tool leases - Number one in the domestic commercial own credit rating and asset holdings as investments, working capital expansion, plan and installment vehicles and construction machinery collateral and mergers plans installment plan sector Financing for real estate Fixed income investments - Official installment plan provider for Large-sum corporate loans using the Resolves financial needs that are Hyundai Motors, Kia Motors, and Hyundai future profitability of their real estate generated during all stages of corporate Heavy Industries development projects as security growth through systematic risk analyses Used commercial vehicles and Corporate leases construction machinery loans Financial products to purchase facilities Installment plans for customers who and equipment that are required for need funds to purchase or operate used business startups and expansion commercial vehicles or construction Corporate Financing machinery Factoring Trade bills or accounts receivable discounts Corporate loans Financing for Corporate Machine tool leases and installment plans real estate leases Leases and installment plans for Specialized products for customers who need funding to purchase Hyundai Motor Group machine tools Specialized corporate financing products for the business partners of Hyundai Financial Services Motor Group Special services for Hyundai Commercial customers Financing for medical equipment Leases and installment financing for hospitals, clinics, and medical foundations to purchase new medical equipment Factoring Specialized products Financing for for Hyundai Motor medical equipment Group Investment Financing Private equity Fixed income investments investments
    • 40 41Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Products Corporate Financing Corporate loans - General corporate loans Factoring A financial transaction in which a business Applying a broad range of flexible Provide loans to companies according to sells its trade receivables and bills to a repayment methods and periods using their business plans using their credit ratings third party (called a factor) at a discountHyundai Commercial Products corporate credit ratings and asset and assets as collateral - Asset-Backed Loans in exchange for funding for its continuing operations. holdings as collateral Provide loans to companies using assets that can be securitized as collateral. Used as a Hyundai Motor Group (HMG) Specialized structured financial product enabling them to Products Industrial Financing Instalment plans for commercial vehicles and construction machinery Financial Services We provide special services for Hyundai repay loans with cash flows generated from their assets - HMG Win-Win Cooperation Fund Offers low-interest-rate funding targeting Providing reliable financial services Hyundai Commercial’s commercial vehicles Commercial customers. the primary business partners of Hyundai for large commercial vehicles, and construction machinery installment - Loan repayment exemptions Real estate financing Motor, Kia Motors, Hyundai Mobis, construction machinery, plans include “official installment plans - Customers’ own vehicle accident - Real Estate Project Financing (PF) Hyundai Powertec, Hyundai Dymos, and and machine tools for Hyundai Motor and Kia Motors” and compensation Provides loans for real estate projects KEFICO “official installment plans for Hyundai Heavy - Deferments of installment payments using feasibility-based future cash flows - Green Win-Win Mould-Backed Loans Industries.” The former products include - Discounts for heavy equipment refueling as collateral And Global Mould-Backed Loans low-interest- rate installment plans for high- and repurchasing - Asset-Backed Commercial Paper (“ABCP”) Provides long-term facility loans to the quality customers who are burdened by high - Simplified repurchasing documents Accept commercial paper (CP) that special- primary business partners of Hyundai interest rates, interest rate-free deferred - Refueling discounts for “Hyundai purpose companies (SPCs) have issued using Motor and Kia Motors using their moulds installment plans that provide deferment Commercial My Business O” card holders trade receivables, PF loans, corporate bonds, as collateral. Includes foreign-currency periods without interest to customers who are - Grace periods enabling customers to pay asset-backed securities (ABS), or mortgage- corporate loans to their overseas burdened by high initial installment payments, interest only backed securities (MBS) as collateral subsidiaries and smart installment plans that allow - Handling vehicle registrations and - Hyundai Motor and Kia Motors Family customers to pay principal and interest during cancellations on behalf of customers Corporate Leases Network Loan high-demand periods and interest only during - Facility Leases A low-interest-rate network loan available non-high-demand periods. In addition, our Enable customers to acquire or lease facilities using product and service deliveries “Hyundai Heavy Industries Official Installment and let their business partners use them for to Hyundai Motor and Kia Motors as Plans” include installment plans with interest- a certain period. They pay for their use by collateral free value-added tax (VAT) for customers who installment during that period, and dispose - HMG Win-Win Growth Q Fund need VAT refunds, and short-term interest- of them according to agreements after the Provides low-interest-rate working free installment plans for customers who can completion of the lease period capital to primary and secondary business pay back their loans in a short period of time - Ship Financing partners of Hyundai Motor, Kia Motors, without having to worry about interest. A leading asset-backed financing product Hyundai Mobis, Hyundai E&C, Hyundai using the exchange value of and profits Wia, Hyundai Steel, and Hyundai Rotem Loans for used commercial vehicles and generated by ships as collateral. Includes ship construction machinery leases, ship-backed loans, Bare Boat Charter Financing for medical equipment We boast the largest domestic market share Hire Purchases (BBC-HP), and ship funds Provides hospitals and clinics with funding for loans used to purchase commercial for new equipment. This service is offered vehicles and construction machinery. in the form of long-term financing, including These loans are divided into purchasing capital general leases and installment financing. loans for customers wanting to purchase Eligible equipment includes dental and used commercial vehicles and operating ultrasonic, magnetic resonance imaging capital loans for customers who need (MRI), and computer tomography (CT) business operating funds and are using their devices. 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 Investment Financing Private equity investments An efficient means of securing funds for Fixed income investments Help resolve financial problems that are loans” that add convenience to our other Enhances corporate and shared facilities investments, working capital generated during all stages of corporate succession products. growth of customers by providing expansion, and mergers. It includes facility growth. This includes enhancing the them with a broad range of services, and working capital financing to promising corporate value of companies that are Machine tool leases and installment plans companies with high growth potential through targets for restructuring by purchasing ranging from financial support to We operate installment and leasing programs sharing in increases in their capital worth, and their bonds and improving their with collaboration with Hyundai Wia, while investment-related consulting in line corporate restructuring investments involving management afterwards, and purchasing providing one-stop consultation, evaluation, with their stage of growth the purchase of shares in companies that are high-interest-rate bonds of companies that and execution services through the nation’s experiencing financial difficulties and then are suffering from temporary financial risks largest automotive sales network. We also sharing in increases in their capital worth. based on systematic risk analyses. 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.
    • 42 43Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010MilestonesHyundai Capital Milestones 1993 - 2001 2002 - 2004 2005 - 2007 2008 2009 2010 1993 12 Founded as Hyundai Auto 2002 01 Launched Just Drive II auto 2005 01 Founded Hyundai Capital’s 01 Launched PLUS+ Membership Service 01 Secured 1.65 trillion won credit line 03 Launched MY BUSINESS franchise loans Finance, Inc. leasing product professional volleyball team, the “Cheonan Hyundai SkyWalkers” Issued 47 billion yen worth of Samurai 03 Launched customer visiting Prime Loan 04 Launched Prime Mortgage Demand 07 Announced Auto Lease Bonds Service Deposit Account 1995 04 Company name changed to 04 Launched quality assurance Hyundai Financial Services satisfaction management goals 02 Launched lease succession service Launched Hyundai Capital KlassAuto VVIP service for used cars Launched “Stop & Listen” concerts program 08 Obtained preliminary license for 09 Launched Auto Save product Launched Prime Mortgage loans for long- 05 Hosted “Hyundai Capital Invitational 2010: 05 Expanded Plus Auto Care service installment finance business term home leases Ranked first in “capital” category in BBC Symphony Orchestra” 10 Ranked first in Korea Customer Korea Brand Power Index (K-BPI) survey 11 Won Korea Financial Innovation Satisfaction Index (KCSI) survey Won grand prize at Korea HR Development 06 Launched new car installment and value 1996 01 Obtained final license for Award Awards conducted by KMAC guarantee program installment finance business in “installment finance” category 12 Launched Prime Loan, integrated 04 Launched Prime Mortgage Card 04 12 Established in-house compliance personal loan brand 04 Issued $155 million worth of syndicated Launched workers’ long-term car rentals Launched home mortgage floating rate notes (FRNs) 05 Launched free quality warranty service for financing business body imported used cars 07 Launched Direct Loan 2006 05 Expanded coverage of used car 06 Established industry’s first leased car 1998 04 Established employee Code of 2003 03 Launched call-back service warranty service to 5,000km/5 fraud prevention system 06 Launched Prime Mortgage Auction Loan 09 Hosted “Hyundai Capital Invitational Conduct months 2010: Korea-Japan Professional Golf 08 Established Credit Risk Hosted “Hyundai Capital Invitational 2008 - 07 Ranked first in the “credit card and capital” Competition” 06 Launched household loan Management System (CRMS) 06 Launched Household Loan in International Gymnastics Gala” category in “The Best Companies to Work business and leasing business association with Korea National for In Korea” survey conducted by KMAC 10 Launched mobile applications 11 Won top prize in “customer Housing Corporation 09 Number of Autoplan customers for used 12 Launched new technology service innovation” category at car payments exceeded one million 08 Launched KlassAuto Grandeur-Mozen long- Launched MY BUSINESS secured loans for financing business KMAC’s Customer Satisfaction 08 Opened first Finance Shop term leasing special payments plan commercial leases Management Awards 10 Obtained ISO 27001 certification for customer information security 09 Hosted “Hyundai Capital Invitational 2009 - Carried out KlassAuto door-to-door vehicle 1999 01 Changed company name to 2007 01 Launched KlassAuto Deferred International Gymnastics Gala” maintenance experience service event Hyundai Capital Services, Inc. 2004 01 Announced Hyundai Capital CI Lease product Won grand prize at Korea HR Excellence Awards and CEO of the Year Award from Opened MY BUSINESS website 11 Launched Workers’ Loan 07 Obtained Y2K certification Launched 1:1 customized 06 Introduced Loan Waiver program KMAC automatic response system 10 Won Best Practice Prize at KMAC’s Korea Renewed new car installment 125% 08 Launched flexible limit loan and (ARS) service Introduced KlassAuto Harley program 11 Secured $100 million credit line from HR Excellence Awards region-specific loan Davidson Lease program Citibank Launched Prime Club 11 Launched Prime Loan Mobile Service 12 Hosted “Stop & Listen” concerts 12 Selected as leading financial 07 Implemented Career Market 12 Secured 185 billion won worth of unsecured institution in consumer finance 06 Launched Mortgage Loan system Issued 64 billion won worth of JPY- Launched MY BUSINESS online loans foreign loans field by Korea’s Financial denominated bonds Supervisory Service (FSS) 08 Formed strategic alliance with Launched Prime Finance product Opened MY BUSINESS Zone GE Capital Issued $500 million worth of Yankee Bonds 08 Introduced e-Prime Loan service Launched MY BUSINESS mobile 2000 02 Launched Speed Small Amount 10 Launched joint venture with GE 12 Credit rating outlook upgraded by Japanese application Loan business Capital 09 Hosted “Hyundai Capital credit rating agency JCR Invitational” (Tour de Korea 2007) Established agency sales system Launched KlassAuto Secured $150 million loan Launched Fleet Partner Card 07 Established dealer agency Launched Autoplan Launched used car leasing program system 10 Launched Auto Inside, used car Ranked first in KCSI survey in finance portal Launched Kia Motors installment program “installment finance” category 2001 04 Moved headquarters (Hyundai for Koreans living in the US Capital Building) to Yeouido 12 Launched Household Fire Compensation program 07 Launched auto leasing business 08 Acquired Diners Club Korea
    • 44 45Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010MilestonesHyundai Card Milestones 2001 - 2004 2005- 2006 2007 2008 2009 2010 2001 08 Acquired Diners Card 2005 02 Launched “the Black” 01 Hosted “Hyundai Card Super Concert 01 - 01 Launched “Hyundai Card Super Class 01” 01 Launched MY BUSINESS card 01 Launched “Hyundai Card Super Concert 07 Il Divo” and “Hyundai Card A Platinum” - Green Day” 09 Moved headquarters to Hyundai 04 Launched Club Academy Service Hosted “Hyundai Card Super Concert 04 - Capital Building in Yeouido for premium members Launched Hyundai Card M Lady 02 Launched “Hyundai Card H” Plácido Domingo” Launched Corporate Loan Service 10 Changed company name to 08 Formed strategic alliance with 02 Launched Hyundai Card K Platinum Won grand prize for HR development at 02 Co-hosted “Destination: Seoul” with Published “Zagat Seoul Restaurants 2010” Hyundai Card.Co.,Ltd. GE Capital Korea HRD Awards MoMA Design Store in New York Won grand prize in corporate culture 02 Expanded “the Black” Korean Air ticket 11 Became affiliate of Hyundai 09 Hosted “Hyundai Card Super category, 5th Annual Korea Ethical 03 Hosted “Time for the Black IV - Christie’s Hosted “Hyundai Card Super Class 03” upgrading service Automotive Group Match 01 - Maria Sharapova vs. Management Awards Fine & Rare Wine Tasting” Venus Williams” Hosted “Time for the Black VI - Pierre Hosted “Hyundai Card Super Concert 08 - 04 Launched Hyundai Card V Exceeded one million cardholders of Gagnaire Gala Dinner” Whitney Houston” 2002 01 Launched Hyundai [M] Card and 12 Ranked first in “credit card” Hyundai Card M Platinum Kia Noblesse Card Became first Asian credit card company to 03 Opened Hyundai Card Homepage 3.0 Established alliance with Taschen global category in National Customer Service Index (NCSI) survey issue $ 400 million in overseas bonds Launched Merchant Store Loan and art book publisher 06 Launched “Save Points” program Launched Hyundai Card Post-Paid Hi-Pass conducted by the Korea Workers’ Loan Won “Most Desired Company to Work for” Hosted Hyundai Card Super Class 05 Productivity Center Launched Hyundai Card R 2003 03 Launched Hyundai Card M award among credit card companies by Launched Hyundai Card W Travel 03 Launched “customer grievances KMAC 08 Launched mini M 2006 01 Launched M card for affiliated 07 Launched “the Red” 04 Issued “the Black” with titanium plate settlements by management” program merchants’ stores 05 Introduced world’s first metal implants Launched M Product service 05 Hosted “Time for the Black VII - Christie’s Opened Hyundai Card Air Lounge at plate for “the Black” 2004 01 Announced Hyundai Card CI 02 Introduced the service brand, Fine & Rare Wine Tasting” Incheon Airport PRIVIA 06 Launched Hyundai Card F Hosted “Hyundai Card Super Class 02” 02 Launched Hyundai Card exclusive 07 Launched “Hyundai Card Super Class 04” Opened Jamsil Store in M Point Mall delivery service system Won “Best Credit Card Company Launched Super Save program Hosted “Hyundai Card Super Match 07 - 2008 Superstars on Ice” Ranked first in the “credit category” in 04 Hosted “Time for the Black X - Christie’s to Work for” award from KMAC 06 Ranked first in “credit card” 07 Hosted “Time for the Black I - Lecture by KMAC’s “best companies to work for in New York Art Auction Preview and Mock category at KMAC’s “Korea’s 06 Established the Women’s Louis Vuitton CEO” Ranked first in the “credit” category in Korea” Auction” Most Admired Company” awards Network KMAC’s “best companies to work for in Launched Career Market System Korea” survey 08 Hosted “Hyundai Card Super Match 08 - 05 Launched Hyundai Card T 09 Launched Hyundai Card S and 08 Opened the first Finance Shop Super Class on Ice” Hyundai Card I 08 Opened first offline M Point Shop in Korea 08 Launched M points passbook service for Hosted “Hyundai Card Super Concert 09 - 09 Hosted “Hyundai Card Super buying cars Launched Hyundai Card M Points A/S Andrea Bocelli” Ranked first in “credit card” Match 02 - Superstars on Ice” 09 Hosted “Time for the Black II - Lecture by Guarantee Service category in the Korea Service Harley Davidson CEO” Hosted “Time for the Black V - Christie’s 06 Hosted “Hyundai Card Super Match 10 - Quality Index (KSQI) survey 10 Launched Hyundai Card Diners New York Art Auction Preview” Hosted “Hyundai Card Super Concert 05 - Medalists on Ice” conducted by KMAC Cards Introduced first Color Core design in Korea Craig David” 10 Obtained ISO 27001 certificate for 07 Launched the Black and the Purple iPhone 11 Launched Hyundai Card M and 11 Launched Hyundai Card M-Q 11 Hosted “Hyundai Card Super Concert 02 - consumer information protection 09 Hosted “Hyundai Card Super Concert 06 - offering and KT premium service Hyundai Card S Platinum Beyonce” Vienna Philharmonic with Sumi Jo” Hosted “Hyundai Card Super Won grand prize at Korea HR Excellence Hosted “Time for the Black XI - Joshua Bell 12 Launched credit guarantee Match 03 - Roger Federer vs. Hosted “Time for the Black III - Jancis Awards and KMAC’s CEO of the Year Hosted “Time for the Black VIII - Jessey Private Concert” insurance service Raphael Nadal” Robinson Wine Tasting” Award Norman Private Concert” Hosted “Hyundai Card Super Concert 10 - 12 Received “BBB” rating from S&P Launched Hyundai Card Red Carpet 11 Co-hosted MoMA’s “Humble Masterpieces: 10 Won Best Practice Prize at KMAC’s HR Usher” Showcase Everyday Marvels of Design” exhibition Management Awards Ranked first in “credit card” 08 Hosted “Hyundai Card Super Concert 11 - category in NCSI survey Hosted “Hyundai Card Super Match 06 - Hosted “Hyundai Card Super Concert 03 - 11 Launched “exclusive silver care service” Stevie Wonder” Pete Sampras vs. Roger Federer” Billy Joel” for elderly cardholders 09 Opened Hyundai Card corporate blog 12 Won excellence prize in “sports marketing” 12 Launched 50 Million M Point Donation 12 Hosted “Hyundai Card Super Match 09 - category at Korea PR Awards Campaign Snow Board City Jump” 10 Hosted “Hyundai Card Super Concert 12 - Itzhak Perlman” Ranked first in “credit card” category in Ranked first in “credit card” category in Hosted “Time for the Black IX - Sarah NCSI survey NCSI survey Chang Private Concert” Hosted “Hyundai Card Super Match 11 - Novak Djokovic vs. Andy Roddick” Ranked first in “credit card” category in Published exclusive Korean edition of Korean Net Promoter Score (KNPS) survey Martha Stewart Living Hosted “Hyundai Card Super Talk 01” Won grand prize at Web Awards Korea Ranked first in “credit card” category in 11 Launched Hyundai Card Platinum 3 series NCSI survey (M3, H3, R3, T3) Won Best Website Prize at Web Awards Credit rating upgraded to “BBB+(S)” by Korea Fitch Ratings Hosted “Time for the Black XIII - Clive Coates Burgundy Wine Tasting” 12 Credit rating upgraded to “AA+” by Korea Investors Service
    • 46 47Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010MilestonesHyundai Commercial Milestones 2007 2008 2009 2010 03 Founded by taking over the industrial 01 Joined the Credit Finance Association 01 Achieved 100% market share in 01 Launched financial products for medical materials sector of Hyundai Capital installment financing for large commercial equipment Introduced interest rate differentiation by vehicles of Hyundai Motor and Kia Motor 04 Registered in the specialized credit credit rating (new and used car loans) 03 Selected as a power brand company in financing business (including facility Launched branch service in the capital the financial leasing category by Seoul rentals and installment financing) 04 Registered in the foreign exchange area (Gangbuk and Gangnam Branches) Economic Daily business 05 Launched monthly installment loans Launched financial partnership assistance 04 Launched extensive deferments of for machine tools in partnership with Unified debt collection for used vehicle dealers installments for commercial vehicles Hyundai WIA 06 Registered in the financing for new Launched new industrial materials CM 06 Implemented and expanded use of 07 Launched affiliated corporate financing technology business mileage program differentiated interest rates by credit rating for customers with new car 10 Launched real estate PF loans 10 Assets reached KRW 1 trillion 05 Launched illegal exports prevention alarm installment plans system Achieved 60% market share in installment 07 Launched network loans for business financing for used commercial vehicles 09 Launched loan repayment exemption partners of Hyundai Motor and Kia Motors service 11 Selected as win-win fund management 08 Financial assets reached KRW 2 trillion company for HMG partners Launched secured loans for sales firms 10 Launched drivers’ own vehicle accident 12 Launched win-win fund management 10 Launched deferments of installment compensation service payments for tour bus operators following the spread of H1N1 11 Launched Green Loan products in alliance with Korea Finance Corporation Credit rating upgraded to “A+ (Positive) 12 Credit rating upgraded to “AA- (Stable)” Operating assets reached KRW 1.6 trillion Provided financial programs for win-win 12 Launched EZ commercial loan 2 for used cooperation targeting overseas business commercial vehicles partners of Hyundai Motor and Kia Motors (payment guarantees for mould-backed loans)
    • 48 49Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Global Presence 01 02 03 04 06 07 Hyundai Capital, Hyundai Card Hyundai Capital Beijing Hyundai Capital New Delhi Hyundai Capital Europe GmbH Hyundai Capital Moscow Hyundai Capital America & Hyundai Commercial Representative Office Representative Office Theodor HeussAllee 11, 60486 Representative Office 3161 Michelson Drive, Irvine CA, 92612, Headquarters Hyundai Motor Tower Room No.407 No.38 6th floor, Corporate One, Plot No. 5, Frankfrut am Main, Germany World Trade Center, ent. 3, office 1901, U.S.A. 15-21 Yeouido–dong Yeongdeungpo–gu Xiaoyun Road, Chaoyang District, Beijing, Non-Hierarchical Commercial Centre, Krasnopresnenskaya nab. 12, 123610, Seoul, Korea, 150–706 China (100027) Jasolar, New Dehli 100 076, India Moscow, Russia 05 Hyundai Capital Germany Theodor HeussAllee 11, 60486 Frankfrut am Main, Germany 04 Hyundai Capital Europe GmbH 02 Hyundai Capital Beijing Frankfrut, Germany Representative Office Beijing, China 05 Hyundai Capital 01 Hyundai Capital · Hyundai Card · Germany Hyundai Commercial Frankfrut, Germany Headquarters Seoul , Korea 06 Hyundai Capital 07 Hyundai Capital Moscow America Representative Office Irvine, U.S.A. Moscow, Russia 03 Hyundai Capital New Dehli Represnetative Office New Dehli, India
    • 50 51Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Directors & ExecutivesHyundai Capital Hyundai Card Board of Directors Executives Board of Directors Executives Ted Chung Ted Chung Sang-Hyuk Suh Gyo-Chang Lee Ted Chung Ted Chung Jae-Hwan Kim Mee-Young Lee President CEO Vice President Vice President President CEO Senior Vice President Vice President Overseas Business Department CS Department Card Sales Department Brands Department Hyun-Seok Shin Bernard van Bunnik Hyun-Seok Shin Bernard van Bunnik Director Deputy CEO Soo-Kyung Kim Byung-Hui Lee Director Deputy CEO Sung-Won Jin Yeon-Woong Baek Vice President Vice President Vice President Vice President Won-Hee Lee Hyun-Seok Shin Controller Auto Finance Planning Department Yoo-No Hwang Jung-Hoe Kim CLM Department (Cross-sell) Collections Department Director Senior Executive Vice President Director Advisor Auto Business Division Hyun-Joo Kim Dai-Gyu Lim Sang-Ho Jeong Yong-Teak Hwang Yong-Bae Lee Vice President Vice President Jae-Rok Lee Ju-Hyuk Lee Vice President Vice President Director Yoo-No Hwang Risk Representative· Jungbu Auto Regional Headquarters Director Executive Vice President SME Business Department Marketing Department Senior Executive Vice President Collection Representative Finance Division Bernard van Bunnik Corporate Services Division Man-Seob Park Yong-Bae Lee Yoon-Seok Lee Joon Oh Director Heather Valteris Vice President Director Se-Hun Park Vice President Vice President Jwa-Jin Cho Vice President West Auto Regional Headquarters Executive Vice President Corporate Services Department Design Department Matthew Richard Susser Executive Vice President CVM Department Bernard van Bunnik Marketing Division Director Head of Financial Marketing Division In-Ju Kim Director Sung-Moon Kim Myong-Su Lee Niclas Neglen Vice President Jin-Moon Jung Vice President Vice President Geoffrey Bruce Culbert Jin-Hwan Choi Vice President Yeongnam South Auto Kun Nah Senior Vice President Audit Department CLM Department Director Executive Vice President Management Department Regional Headquarters Outstanding Director, Audit Committee Member Personal Finance Division Strategic Planning Division Gil-Soo Jun In-Hwan Kwak Woon-Chul Jung Byung-Il Kim Byeong-Hee Kim Vice President Keun-Bae Jung Vice President Audito Outstanding Director, Audit Committee Member Senior Vice President Alliance Business Department Senior Vice President Underwriting Department Auditor Risk Management Division Head of Auto Business Division Kun-Bum Lee Jin-Tae Kim Sung-Won Choi Hong-Kyun Kim Outstanding Director, Audit Committee Member Eun-Gu Jang Vice President Jae-Eul Choi Vice President Vice President Senior Vice President Corporate Management Department Senior Vice President HR Department Beijing Representative Office Steven Andrew Sargent Corporate Financing Division IT Department Outstanding Director Kyu-Sik Kim Hwan-Bin Yong Dae-Kyoon Kwon Jung-In Kim Vice President Suk-Joon Won Vice President Vice President Gregory Leong Hong Senior Vice President Corporate Legal Affairs Department Senior Vice President PL Planning Department Overseas Business Team (HCA) Outstanding Director Operations Division Corporate Services Division (HCA) Kyung-Joo Min Soo-Jeong Paek King Toh Lee Vice President Sang-Woo Kim Vice President Outstanding Director Fee Business Department (Fee Biz) Vice President Marketing Department Early Collections Department Gwi-Ho Kang Yoon-Tae Kim Vice President Vice President Auto Business Department II Treasury Department Board of Director’s ActivitiesHyundai Commercial Risk Control Executive Finance Compliance Committee Committee Review Board Board of Directors Executives The Risk Control Committee is a deliberative The Executive Finance Committee is a This body is tasked with ensuring the body that is committed to achieving sound decision-making body that ensures that the efficient operation of the companies’ Ted Chung Ted Chung Jeong-Hak Son Yeon-Wung Baek management and stable profitability. It does financial activities of all Hyundai Capital and various compliance policies and President CEO Senior Vice President Director this by overseeing all potential risks related Hyundai Card’s operations are carried out establishing relevant policies. This Investment Financing Department Bonds Management Office Byeong-Doo Kim Byeong-Doo Kim to the joint operations of Hyundai Capital smoothly. including compliance with regulations Director Executive Vice President Jae-Eul Choi Byeong-Gu Jeon Senior Vice President Director and Hyundai Card. regarding the overall joint management of Won-Hee Lee Jin-Hwan Choi IT Department Business Management Department Meeting frequency: Monthly Hyundai Capital and Hyundai Card Director Executive Vice President Membership: Four from HMC, three from GECC Strategic Planning Division Gil-Ho Jeon Meeting frequency: Monthly Ju-Hyuk Lee Director Membership: Five from HMC, five from GECC Frequency of Meetings: Quarterly Director Sung-Moon Kim Industrial Financing Department Auditor Membership: Seven from HMC, seven from GECC Jin-Hwan Choi Gyu-Sik Kim Director Byeong-Hee Kim Director Senior Vice President Business Legal Affairs Department Risk Management Division 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.
    • 52 53Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Independent Auditor’s ReportHyundai Capital Hyundai Card To the Shareholders and Board of Directors of Hyundai Capital Services, Inc. To the Shareholders and Board of Directors of Hyundai Card Co., Ltd. We have audited the accompanying statements of financial position of Hyundai Capital Services, Inc.(the “Company”) as We have audited the accompanying non-consolidated statements of financial position of Hyundai Card Co., Ltd.(the of December 31, 2010, and the related statements of income, appropriation of retained earnings, changes in shareholders’ “Company”) as of December 31, 2010, and the related non-consolidated statements of income, appropriations of retained equity and cash flows for the year then ended, expressed in Korean won. These financial statements are the responsibility earnings, changes in shareholders’ equity and cash flows for the year then ended, all expressed in Korean won. These of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on audits. The financial statements of the Company as of and for the year ended December 31, 2009, presented herein for these financial statements based on our audit. The financial statements for the year ended December 31, 2009 presented comparative purposes, were audited by other auditors whose report dated February 24, 2010, expressed an unqualified herein for comparative purposes were audited by Samil PrincewaterhouseCoopers and their report, dated February 10, opinion on those statements. 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 We conducted our audit in accordance with auditing standards generally accepted in the Republic of Korea. Those require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the the financial statements. An audit also includes assessing the accounting principles used and significant estimates made amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe reasonable basis for our opinion. that our audits provide 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 In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the all material respects, the financial position of Hyundai Capital Services, Inc. as of December 31, 2010, and the results of its Company as of December 31, 2010, and the results of its operations, changes in its retained earnings and its shareholders’ operations, the changes in its retained earnings, changes in shareholders’ equity and cash flows for the year then ended in equity, and its cash flows for the year ended December 31, 2010, in conformity with accounting principles generally conformity with accounting principles generally accepted in the Republic of Korea. accepted in the Republic of Korea. Accounting principles and auditing standards and their application in practice vary among countries. The accompanying 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’ financial statements for the year ended December 31, 2010 are not intended to present the financial position, results equity and cash flows in conformity with accounting principles and practices generally accepted in countries and of operations, changes in shareholders’ equity and cash flows in accordance with accounting principles and practices jurisdictions other than the Republic of Korea. In addition, the procedures and practices used in the Republic of Korea to generally accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other this report and the accompanying financial statements are for use by those who are informed about Korean accounting countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable about principles or auditing standards and their application in practice. Korean accounting procedures and auditing standards and their application in practice. Samil PricewaterhouseCoopers Deloitte Anjin LLC Seoul, Korea Seoul, Korea March 2, 2011 March 8, 2011
    • 54 55Hyundai Capital,Hyundai Card &Hyundai CommercialAnnual Report 2010Independent Auditor’s ReportHyundai Commercial 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. Deloitte Anjin LLC Seoul, Korea February 24, 2011 www.hyundaicapital.com www.hyundaicard.com www.hyundaicommercial.com