Kia Motors Corp, SouthKorea's No.2 auto maker, said it had repaid 300 million euros($378.5 million) worth of debt due on Monday in cash.



A company spokeswoman confirmed by telephone that the paymenthad been made.



After the payment, Kia has a total of 4.8 trillion won ($3.20billion) in debts and 35 percent of the total is in foreigncurrency, the spokeswoman said.



Shares in Kia plunged 14.85 percent to end at 6,710 won,sharply underperforming a 3.35 percent fall in the wider market.KS11.



The company is not free from a worldwide economic downturnand may have to continue to pay back other foreign currency debtsin cash, analysts said.



'Investors are worried that amid the current liquidity crunchin financial markets, Kia may continue to have difficultiesrefinancing debts, and may have to pay them off in cash,' saidKevin Lee, analyst, Goodmorning Shinhan Securities.



Kia, an affiliate of the country's top car maker HyundaiMotor Co, has found it difficult to issue bonds torefinance debt amid global financial turmoil and a loomingworldwide recession that has hit auto demand. ($1=.7926 Euro) ($1=1497.9 Won)