SSANGYONG MOTOR COMPANY
BALANCE SHEETS AS OF DECEMBER 31, 2006 AND 2005   
  Korean Won

(In thousands, except per share amounts) 		Translation into
U.S. Dollar
(In thousands, except per share amounts)
ASSETS
2006
 2005 2006
2005
CURRENT ASSETS : Cash and cash equivaletns
133,741,387
 260,546,428 $143,870 $280,278
Short-term financial instruments 4,577,074 6,564,783 4,924 7,062
Available-for-sale securities 1,048,505 23,012 1,128 25
Trade receivables, net of allowance for doubtful accounts of ￦2,569,481 thousand in 2006 and ￦2,818,935
thousand in 2005, and present value discount of ￦ 213,715
thousand in 2006 and ￦ 338,795 thousand in 2005 (Notes 12,
15 and 21)
176,181,101
213,886,565 189,524 230,085

Short-term loans, net of allowance for doubtful accounts of ￦22,982 thousand in 2006 and
￦22,854 thousand in 2005 (Note 6)
1,797,041
1,551,744 1,933 1,669

Other receivables, net of allowance for doubtful
accounts of ￦3,173,866 thousand in 2006 and ￦4,557,008
thousand in 2005 (Notes 15 and 21)
25,298,111
 16,988,862 27,214 18,275

Advanced payments, net of allowance for doubtful accounts of
￦ 22,526 thousand in 2006 and ￦220,344 thousand in 2005

 9,003,444
 8,120,807 9,685 8,736
Prepaid expenses 2,661,899
 3,263,420 2,863 3,511
Deferred tax assets - 17,056,853 - 18,349
Inventories, net of allowance for valuation of
￦11,817,992 thousand in 2006 and ￦8,430,189 thousand in
2005 (Notes 2, 4 and 7)		 334,715,482
 336,247,561 360,064 361,712
Derivative assets (Note 23) 2,540,053 742,462,521 874,730 732,934
Other current assets, net of allowance for doubtful accounts of
￦81 thousand in 2006 and
￦2,407 thousand in 2005		 3,486,934 1,126,510 3,751 1,211
  695,051,031 865,376,545 747,688 930,913
NON-CURRENT ASSETS Long-term financial instruments (Note 3) 9,000
 8,000 10 9
Available-for-sale securities (Note 5) 1,404,167
 1,563,097 1,511 1,681
Equity securities using the equity method (Note 5) 2,241,605 2,130,709 2,411 2,292
Long-term loans, net of allowance for doubtful accounts of 359,446 thousand in 2005 and 3,710,721 thousand in 2004 27,084,146
 30,198,916 29,135 32,486
Long-term trade receivables, net of allowance for
doubtful accounts of ￦5,853 thousand in 2006 and ￦1,015
thousand in 2005, and present value
discount of ￦96,423 thousand in 2006 and ￦809 thousand
in 2005 (Note 12)		 483,018 78,191 520 84
Guarantee deposits, net of allowance for doubtful accounts of
￦333,492 thousand in 2006 and ￦410,560 thousand in 2005		 36,561,563
 44,451,593 39,330 47,818
Advance for employee contribution 10,086,200
 9,037,390 10,850 9,722
Deferred tax assets -
 121,189,737 - 130,368
Other investments in properties 2,737,552
 500,394 2,945 537
Property, plant and equipment, net 1,507,794,423 1,557,891,190 1,621,982 1,675,873
Intangible assets 67,842,110
 76,415,512 72,980 82,203
  1,656,243,784 1,843,464,729 1,781,674 1,983,073
  2,351,294,815 2,708,841,274 $2,529,362 $2,913,986
LIABILITIES AND SHAREHOLDERS' EQUITY
2006 2005 2006 2005
CURRENT LIABILITIES : Trade payables 523,523,282 511,288,964 $563,170 $550,010
Short-term borrowings 70,924,116 99,400,920 76,295 106,929
Other payables 197,411,866 215,835,146 212,363 232,180
Advances from customers 7,800,240 9,861,385 8,391 10,608
Withholdings 18,328,153
 22,803,792 19,716 24,531
Accrued expenses 25,188,676
 24,499,248 27,096 26,355
Current-portion of long-term debt -
 - - -
Accrued warranties and product liabilities 47,071,684
 51,606,862 50,636 55,515
Derivative liabilities 6,250,007 - 6,723 -
Other current liabilities 3,820,827 1,997,598 4,111 2,148
  900,318,851 937,293,915 968,501 1,008,276
LONG-TERM LIABILITIES : Debentures, net of present value discount of ￦651,688
thousand in 2006 (Notes 8,11 and 12)		 299,348,312
 - 322,018 -
Long-term debt, net of present value discount of 5,855,068 thousand in 2005 - 414,144,932 - 445,509
Accrued severance indemnities, net of National
Pension Fund of ￦1,790,672 thousand in 2006
and ￦2,788,827 thousand in 2005, and
severance insurance deposits of ￦5,635,518
thousand in 2006 and ￦6,688,657 thousand
in 2005 (Note 2)		 165,377,040
 169,973,155 177,901 182,845
Accrued warranties and product liabilities 55,495,518 57,121,558 59,698 61,447
Other long-term liabilities 5,413,856 13,600,990 8,792 13,426
  525,634,726
 650,146,141 565,442 699,383
Total liabilities 1,425,953,577 1,587,440,056 1,533,943 1,707,659
SHAREHOLDERS' EQUITY : Capital stock 604,023,100
604,023,100
 649,767 649,767
Capital surplus 15,440,281 15,440,281 16,610 16,610

RRetained earnings (Net loss of ￦195,961,755
thousand for the year ended December 31
, 2006 and ￦103,360,186 thousand
for the year ended December 31, 2005) (Note 14)

 306,127,307
502,089,061  329,311 540,113
Capital adjustments Gain on valuation of available-for-sale securities 90,434
 56,973 97 61
Exchange differences on translation of financial statements of operations outside Korea (339,884)
 (208,197)
 (366) (224)
Total Shareholders' Equity 925,341,238 1,121,401,218 995,419 1,206,327
Total Liabilities and Shareholders' Equity 2,351,294,815 2,708,841,274 $2,529,362 $2,913,986