Competition among automobile companies throughout the world has been fierce. In spite of these conditions, Hyundai Motor Company has made a giant leap forward thanks to its advanced management philosophy, designed to ensure a better future for Hyundai Motor Company and its customers. This management philosophy has become even more solid since the inauguration of Mong–Koo Chung as Chairman and CEO in 1999. Trust and a hands–on management philosophy are the foundation of Hyundai Motor Company.

Hyundai Motor Company is growing into a brand appreciated by its customers because it is continuously striving to achieve the single goal of making good quality products with an emphasis on the customer first principle across all management levels, including production, sales, and service. Moreover, Hyundai Motor will continue building its brand image as a top global automobile company by handling every task with transparency and fairness from the perspective of business ethics.

Marching into the future through the move forward and growth. It will be reborn as a truly global company gaining a competitive edge in the global market.

Further expanding its global reach, Hyundai Motor Company established its European manufacturing base through construction of a production plant with an annual capacity of 300,000 units in the Czech Republic in 2009. Additionally, the construction of the Russia plant with an annual capacity of 150,000 units is set for full operation from 2011, bringing a strong foothold in the European market. The plant in Brazil is expected to play a key role in reinforcing the Company’s market share in Central and South America.

In 2010, Hyundai Motor Company achieved a significant accomplishment, increasing global sales by 16.3 percent over 2009, selling 3.61 million vehicles in the midst of ongoing global economic tumult. In America, the Sonata and Tucson (ix35) helped push annual sales to more than 500,000 units for the first time. In China and India the release of specialized models for the local markets led to sales of 700,000 and 600,000 units, respectively. In 2011, Hyundai Motor Company has set the goal of increasing internal competitiveness and reaching 3.9 million sales. We will make this an even more successful year by maximizing brand value in developed markets and expanding sales capacity in emerging markets.

The TAU 4.6 engine was selected as a winner of the 2010 10 Best Engines of the US automotive media Ward’s AutoWorld for the second consecutive year. Earning favourable reviews including the “engine’s velvety power delivery,” “aggressive tip-in,” and “a remarkable combination of satisfactory exhaust emission and amazing fuel efficiency,” Hyundai Motor’s high product quality was proven once again, this time in engine technology—the heart of an automobile. Hyundai Motor pledges to concentrate its technical capabilities and pay special attention to the development of high fuel efficiency-related technologies to become a true global environmental leader.

Hyundai Motor Company was named Carmaker of the Year by AM, UK’s leading auto trade magazine, in the AM Awards 2010. Carmaker of the Year is awarded to companies that launch innovative vehicles that pioneer changes in the auto industry through continuous investment in R&D and advanced dealer network programs. Highly recognised for its sharp sales increase, first-rate dealership programs, and growth in brand awareness, Hyundai Motor Company beat other candidates including Ford, Jaguar, and Landrover to be selected as the winner of the coveted title. In 2008, UK’s Autocar selected Hyundai Motor Company as Automaker of the Year, praising Hyundai for having “grown into a top-class global automaker with its competitive products.”

Once again, Hyundai Motor placed in the Top 100 Global Brands in 2011 based on a joint study conducted by Business Week and Interbrand. By enhancing Hyundai’s brand image through high quality products and unique marketing initiatives amidst the downturn in the automotive market, Hyundai Motor is steadily climbing the ranks since it first entered the Top 100 Global Brands in 2005. Hyundai will continue to strengthen its management and pursue the highest in quality so that “Hyundai Motor Company” will equal “global premium brand” in the minds of consumers worldwide.

Under the Board of Directors, there are the Audit Committee and External Director Candidates Recommendation Committee. We further established the Ethics Committee in 2007

The Board of Directors makes decisions on matters defined by the laws or articles of incorporation, matters delegated by the general shareholders´ meeting, and key matters related to the basic guidelines for company operations and work execution. Moreover, we have the authority to supervise duties of directors and management, and consist of four internal directors and five external directors. The Board of Directors holds regular meetings and special meetings, if necessary.

The Audit Committee under the Board of Directors consists of four external directors. It is responsible for auditing finance and management of HMC. It has the authority to review reports on business management and financial status. The Audit Committee approves matters related to audit, the shareholders´ meeting, directors, and the board of directors. It can access business and management information for auditing.The External Director Candidates Recommendation Committee consists of two internal directors and two external directors. External directors should be recommended by the External Director Candidates Recommendation Committee. The 2007 Shareholders´ Meeting approved the directors´ compensation ceiling of 10 billion won. From January 1 to December 31, 2007, total compensation paid to internal and external directors was 7.737 billion won.

We established the Ethics Committee, which monitors internal transactions and supervises transparency and ethics management. The Ethics Committee consists of five external directors, one executive, and two advisors. It reviews matters related to the Anti-Trust and Fair Trading Act, transactions between parties in special relations specified in the Securities Trading Act, voluntary compliance with fair trading regulations, policies on ethics management and social contribution, and the Ethics Charter.