SSANGYONG MOTOR COMPANY
BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2002   
  Korean Won Translation into
U.S. Dollar
ASSETS
2003
 2002 2002
2001
CURRENT ASSETS : Cash and cash equivaletns
128,910,039
 173,005,645 $107,622
$144,436
Short-term financial instruments 66,311,888
49,388,947
55,361
41,233
Trading securities 927,375
861,679
774
719
Trade receivables, net of allowance for doubtful accounts of 121,173,549 thousand in 2003 and
222,173,549 thousand in 2002, and present
value discount of 79,178 thousand in 2003 and
85,647 thousand in 2002
216,177,048
230,459,666
180,478
192,403

Short-term loans, net of allowance ofr doubtful accounts of
4,956,960 thousand in 2003 and4,977,048 thousand in 2002

2,705,532
1,657,768
2,259
1,384

Other receivables, net of allowance for doubtful accounts of
19,110,582 thousand in 2003 and
74,912,547 thousand in 2002, and present value discount of
1,127,08 thousand in 2003
17,877,710
20,285,154
14,926
16,935

Advanced payments, net of allowance for doubtful
accounts of 412,581 thousand in 2003 and
353,230 thousand in 2002

 44,848,861
15,168,316
37,443
12,663
Prepaid expenses 3,948,840
3,679,585
3,297
3,072
Inventories 316,822,038
192,267,397
264,503
160,517

Other current assets, net of allowance for doubtful
accounts of
2,917,048 thousand in 2003 and
2,958,219 thousand in 2002

 3,770,057
2,242,631
3,148
1,872
  802,299,388
689,016,788
669,811
575,234
NON-CURRENT ASSETS Long-term financial instruments 16,000
14,500
13
12
Long-term other receivables, net of present value discount of 4,004,071 thousand in 2002 Available-for-sale securities

-
36,495,929
-
 30,469
Available-for-sale securities 1,607,739
2,769,134
1,342
2,312
Long-term loans,net of allowance for doubtful accounts
10,134,298 thousand in 2002 and
11,693,076 thousand in 2002 		28,557,986
29,979,290
23,842
25,029
Long-term trade receivables, net of allowance for doubtful doubtful accounts
385,462 thousand in 2003 and
225,557 thousand in 2002, and present value
discount of
48,382 thousand in 2003 and
39,466 thousand in 2002 		538,946
174,591
450
146
Guarantee deposits, net of allowances for doubtful accounts of 1,217,911
thousand in 2003 and 1,983,633 thousand in 2002		 36,078,901
29,555,708
30,121
24,675
Group severance insurance deposits 6,952,696
6,717,608
5,805
5,608
Advance for employee contribution 5,530,380
4,923,660
4,617
4,111
Deferred tax assets 228,838,866
- 191,049
-
Other investments in properties 1,885,153
- 1,574
-
Property, plant and equipment, net 1,334,148,967
1,330,104,405
1,113,833
1,110,456
Intangible assets 83,209,076
67,695,654
69,468
56,517
  1,727,364,710
1,508,430,479
1,442,114
1,259,335
  2,529,664,098
2,197,447,267
$2,111,925
$1,834,569
LIABILITIES AND SHAREHOLDERS' EQUITY
2003 2002 2002 2001
CURRENT LIABILITIES : Trade payables 374,746,348
390,028,059
$312,862
$325,620
Short-term borrowings 17,458,047
100,235,243
14,575
83,683
Other payables 233,023,162
264,820,353
194,543
221,089
Advances from customers 6,084,742
9,727,916
5,080
8,121
Withholdings 25,629,589
41,213,427
21,397
34,408
Accrued expenses 26,314,875
38,355,383
21,969
32,022
Current-portion of long-term debt, net of present value discount of 24,531 thous and in 2002 118,882,992
91,778,929
99,251
76,623
Accrued warranties and product liabilities 48,583,717
55,515,659
40,561
46,348
Other current liabilities 2,335,082
1,251,545
1,949
1,045
  853,058,554
992,926,514
712,187
828,959
LONG-TERM LIABILITIES : Debentures, net of discount on debentures of 97,758 thousand in 2002 -
 2,494,242
-
 2,082
Long-term debt, net of present value discount of 6,035,115 thousand in 2003 and 8,716,547 thosand in 2002 284,824,102
405,047,180
237,789
338,159

Accrued severance indemnities, net of National Pension
Fund of 4,392,151 thousand in 2003 and 6,290,499 thousand in 2002

 142,260,214
133,001,913
118,768
111,039
Long-term accrued warranties and product liabilities 43,492,793
47,577,126
36,311
39,720
Other long-term liabilities -
 50,000
-
 42
  470,577,109
588,170,461
392,868
491,042
Total liabilities 1,323,635,663
1,581,096,975
1,105,055
1,320,001
SHAREHOLDERS' EQUITY : Capital stock 604,023,100
604,023,100
504,277
504,277
Capital surplus 15,440,281
5,149,844,305
12,891
4,299,419

Retained earning (accumulated deficit)(Net income of 589,695,819 thousand in 2003and 320,425,028 thousand in 2002)

589,695,819
(5,134,404,024)
 492,316
(4,286,529)
Capital adjustments        
Loss on valuation of available-for-sale securities (3,125,199)
 (3,107,523) (2,609)
 (2,594)
Loss on disposal of treasury stock (5,566)
 (5,566)
 (5)
 (5)
Total Shareholders' Equity 1,206,028,435
616,350,292
1,006,870
514,568
Total Liabilities and Shareholders' Equity 2,529,664,098
2,197,447,267
$2,111,925
$1,834,569