Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | SKM |
Entity Registrant Name | SK TELECOM CO LTD |
Entity Central Index Key | 1,015,650 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 70,609,160 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | ₩ 1,457,735 | ₩ 1,505,242 |
Short-term financial instruments | 616,780 | 468,768 |
Short-term investment securities | 144,386 | 107,364 |
Accounts receivable - trade, net | 2,126,007 | 2,240,926 |
Short-term loans, net | 62,830 | 58,979 |
Accounts receivable - other, net | 1,260,835 | 1,121,444 |
Prepaid expenses | 197,046 | 169,173 |
Inventories, net | 272,403 | 259,846 |
Advanced payments and other | 63,777 | 64,886 |
Total Current Assets | 6,201,799 | 5,996,628 |
Non-Current Assets: | ||
Long-term financial instruments | 1,222 | 937 |
Long-term investment securities | 887,007 | 828,521 |
Investments in associates and joint ventures | 9,538,438 | 7,404,323 |
Property and equipment, net | 10,144,882 | 10,374,212 |
Goodwill | 1,915,017 | 1,932,452 |
Intangible assets, net | 3,586,965 | 3,776,354 |
Long-term loans, net | 50,874 | 65,476 |
Long-term accounts receivable - other | 287,048 | 149,669 |
Long-term prepaid expenses | 90,834 | 88,130 |
Guarantee deposits | 292,590 | 298,964 |
Long-term derivative financial assets | 253,213 | 214,770 |
Defined benefit assets | 45,952 | 30,247 |
Deferred tax assets | 88,132 | 75,111 |
Other non-current assets | 44,696 | 61,869 |
Total Non-Current Assets | 27,226,870 | 25,301,035 |
Total Assets | 33,428,669 | 31,297,663 |
Current Liabilities: | ||
Short-term borrowings | 130,000 | 2,614 |
Current portion of long-term debt, net | 1,530,948 | 888,467 |
Current portion of long-term payables - other | 302,703 | 301,773 |
Accounts payable - trade | 351,711 | 402,445 |
Accounts payable - other | 1,867,074 | 1,767,799 |
Withholdings | 961,501 | 964,084 |
Accrued expenses | 1,327,906 | 1,125,816 |
Income tax payable | 219,791 | 474,931 |
Unearned revenue | 175,732 | 188,403 |
Provisions | 52,057 | 66,227 |
Receipts in advance | 161,266 | 174,588 |
Derivative financial liabilities | 28,406 | 86,950 |
Other current liabilities | 28 | 2 |
Total Current Liabilities | 7,109,123 | 6,444,099 |
Non-Current Liabilities: | ||
Debentures, excluding current portion, net | 5,596,570 | 6,338,930 |
Long-term borrowings, excluding current portion | 211,486 | 139,716 |
Long-term payables - other | 1,346,763 | 1,624,590 |
Long-term unearned revenue | 7,052 | 2,389 |
Defined benefit liabilities | 61,960 | 70,739 |
Long-term derivative financial liabilities | 11,064 | 203 |
Long-term provisions | 32,669 | 31,690 |
Deferred tax liabilities | 978,693 | 479,765 |
Other non-current liabilities | 44,094 | 49,112 |
Total Non-Current Liabilities | 8,290,351 | 8,737,134 |
Total Liabilities | 15,399,474 | 15,181,233 |
Shareholders' Equity | ||
Share capital | 44,639 | 44,639 |
Capital deficit and others | (202,237) | (198,739) |
Hybrid bonds | 398,518 | 398,518 |
Retained earnings | 17,835,946 | 15,953,164 |
Reserves | (234,727) | (226,183) |
Equity attributable to owners of the Parent Company | 17,842,139 | 15,971,399 |
Non-controlling interests | 187,056 | 145,031 |
Total Shareholders' Equity | 18,029,195 | 16,116,430 |
Total Liabilities and Shareholders' Equity | ₩ 33,428,669 | ₩ 31,297,663 |
Consolidated Statements of Inco
Consolidated Statements of Income - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue and other income: | |||
Revenue | ₩ 17,520,013 | ₩ 17,091,816 | ₩ 17,136,734 |
Other income | 31,997 | 66,548 | 30,935 |
Operating revenue and other income | 17,552,010 | 17,158,364 | 17,167,669 |
Operating expenses: | |||
Labor | 1,966,156 | 1,869,763 | 1,893,745 |
Commissions | 5,486,263 | 5,376,726 | 5,206,951 |
Depreciation and amortization | 3,097,466 | 2,941,886 | 2,845,295 |
Network interconnection | 875,045 | 954,267 | 957,605 |
Leased line | 342,240 | 394,412 | 389,819 |
Advertising | 522,753 | 438,453 | 405,005 |
Rent | 520,244 | 517,305 | 493,586 |
Cost of products that have been resold | 1,886,524 | 1,838,368 | 1,955,861 |
Others | 1,630,747 | 1,523,766 | 1,524,377 |
Operating expenses | 16,327,438 | 15,854,946 | 15,672,244 |
Operating profit | 1,224,572 | 1,303,418 | 1,495,425 |
Finance income | 366,561 | 575,050 | 103,900 |
Finance costs | (433,616) | (326,830) | (350,100) |
Gain relating to investments in subsidiaries, associates and joint ventures, net | 2,245,732 | 544,501 | 786,140 |
Profit before income tax | 3,403,249 | 2,096,139 | 2,035,365 |
Income tax expense | 745,654 | 436,038 | 519,480 |
Profit for the year | 2,657,595 | 1,660,101 | 1,515,885 |
Attributable to: | |||
Owners of the Parent Company | 2,599,829 | 1,675,967 | 1,518,604 |
Non-controlling interests | ₩ 57,766 | ₩ (15,866) | ₩ (2,719) |
Earnings per share: | |||
Basic and diluted earnings per share (in won) | ₩ 36,582 | ₩ 23,497 | ₩ 20,988 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Profit for the year | ₩ 2,657,595 | ₩ 1,660,101 | ₩ 1,515,885 |
Items that will never be reclassified to profit or loss, net of taxes: | |||
Remeasurement of defined benefit liabilities | 5,921 | (7,524) | (14,489) |
Items that are or may be reclassified subsequently to profit or loss, net of taxes: | |||
Net change in unrealized fair value of available-for-sale financial assets | 158,440 | (223,981) | (3,661) |
Net change in other comprehensive income of investments in associates and joint ventures | (141,008) | (9,939) | (5,709) |
Net change in unrealized fair value of derivatives | 22,586 | (13,218) | (1,271) |
Foreign currency translation differences for foreign operations | (46,952) | 7,331 | 26,965 |
Other comprehensive income (loss) | (1,013) | (247,331) | 1,835 |
Total comprehensive income | 2,656,582 | 1,412,770 | 1,517,720 |
Total comprehensive income (loss) attributable to: | |||
Owners of the Parent Company | 2,597,160 | 1,432,982 | 1,522,280 |
Non-controlling interests | ₩ 59,422 | ₩ (20,212) | ₩ (4,560) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - KRW (₩) ₩ in Millions | Total | Share capital [member] | Capital surplus (deficit) and others [member] | Hybrid bonds [member] | Retained earnings [member] | Reserves [member] | Attributable to owners [member] | Non-controlling interests [member] |
Balance at Dec. 31, 2014 | ₩ 15,248,270 | ₩ 44,639 | ₩ (120,520) | ₩ 398,518 | ₩ 14,188,591 | ₩ (4,489) | ₩ 14,506,739 | ₩ 741,531 |
Total comprehensive income: | ||||||||
Profit (loss) for the year | 1,515,885 | 1,518,604 | 1,518,604 | (2,719) | ||||
Other comprehensive income (loss) | 1,835 | (13,402) | 17,078 | 3,676 | (1,841) | |||
Total comprehensive income | 1,517,720 | 1,505,202 | 17,078 | 1,522,280 | (4,560) | |||
Transactions with owners: | ||||||||
Annual dividends | (596,008) | (595,865) | (595,865) | (143) | ||||
Interim dividends | (72,629) | (72,629) | (72,629) | |||||
Interest on hybrid bonds | (16,840) | (16,840) | (16,840) | |||||
Acquisition of treasury shares | (490,192) | (490,192) | (490,192) | |||||
Disposal of treasury shares | 425,744 | 425,744 | 425,744 | |||||
Changes in consolidation scope | (5,226) | (5,226) | ||||||
Changes in ownership in subsidiaries | (636,743) | (24,040) | (832) | (3,286) | (28,158) | (608,585) | ||
Transactions with owners | (1,391,894) | (88,488) | (686,166) | (3,286) | (777,940) | (613,954) | ||
Balance at Dec. 31, 2015 | 15,374,096 | 44,639 | (209,008) | 398,518 | 15,007,627 | 9,303 | 15,251,079 | 123,017 |
Total comprehensive income: | ||||||||
Profit (loss) for the year | 1,660,101 | 1,675,967 | 1,675,967 | (15,866) | ||||
Other comprehensive income (loss) | (247,331) | (7,499) | (235,486) | (242,985) | (4,346) | |||
Total comprehensive income | 1,412,770 | 1,668,468 | (235,486) | 1,432,982 | (20,212) | |||
Transactions with owners: | ||||||||
Annual dividends | (635,782) | (635,482) | (635,482) | (300) | ||||
Interim dividends | (70,609) | (70,609) | (70,609) | |||||
Interest on hybrid bonds | (16,840) | (16,840) | (16,840) | |||||
Changes in ownership in subsidiaries | 52,795 | 10,269 | 10,269 | 42,526 | ||||
Transactions with owners | (670,436) | 10,269 | (722,931) | (712,662) | 42,226 | |||
Balance at Dec. 31, 2016 | 16,116,430 | 44,639 | (198,739) | 398,518 | 15,953,164 | (226,183) | 15,971,399 | 145,031 |
Total comprehensive income: | ||||||||
Profit (loss) for the year | 2,657,595 | 2,599,829 | 2,599,829 | 57,766 | ||||
Other comprehensive income (loss) | (1,013) | 5,875 | (8,544) | (2,669) | 1,656 | |||
Total comprehensive income | 2,656,582 | 2,605,704 | (8,544) | 2,597,160 | 59,422 | |||
Transactions with owners: | ||||||||
Annual dividends | (635,763) | (635,482) | (635,482) | (281) | ||||
Interim dividends | (70,609) | (70,609) | (70,609) | |||||
Interest on hybrid bonds | (16,840) | (16,840) | (16,840) | |||||
Share option | 414 | 414 | 414 | |||||
Changes in ownership in subsidiaries | (21,019) | (3,912) | 9 | (3,903) | (17,116) | |||
Transactions with owners | (743,817) | (3,498) | (722,922) | (726,420) | (17,397) | |||
Balance at Dec. 31, 2017 | ₩ 18,029,195 | ₩ 44,639 | ₩ (202,237) | ₩ 398,518 | ₩ 17,835,946 | ₩ (234,727) | ₩ 17,842,139 | ₩ 187,056 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash generated from operating activities | |||
Profit for the year | ₩ 2,657,595 | ₩ 1,660,101 | ₩ 1,515,885 |
Adjustments for income and expenses (Note 38) | 2,096,764 | 3,039,561 | 3,250,143 |
Changes in assets and liabilities related to operating activities (Note 38) | (261,468) | 13,764 | (685,734) |
Sub-total | 4,492,891 | 4,713,426 | 4,080,294 |
Interest received | 66,713 | 44,602 | 43,400 |
Dividends received | 106,674 | 98,267 | 62,973 |
Interest paid | (234,127) | (245,236) | (275,796) |
Income tax paid | (576,331) | (367,891) | (132,742) |
Net cash provided by operating activities | 3,855,820 | 4,243,168 | 3,778,129 |
Cash inflows from investing activities: | |||
Decrease in short-term financial instruments, net | 222,322 | ||
Decrease in short-term investment securities, net | 105,158 | ||
Collection of short-term loans | 216,700 | 238,980 | 398,308 |
Decrease in long-term financial instruments | 27 | 28 | 7,424 |
Proceeds from disposals of long-term investment securities | 129,726 | 555,519 | 149,310 |
Proceeds from disposals of investments in associates and joint ventures | 5,925 | 66,852 | 185,094 |
Proceeds from disposals of property and equipment | 29,368 | 22,549 | 36,586 |
Proceeds from disposals of intangible assets | 8,848 | 16,532 | 3,769 |
Proceeds from disposals of assets held for sale | 1,009 | ||
Collection of long-term loans | 6,205 | 1,960 | 2,132 |
Decrease in deposits | 24,550 | 14,894 | 14,635 |
Proceeds from disposals of other non-current assets | 1,185 | 728 | 607 |
Proceeds from disposals of subsidiaries | 30,132 | 155 | |
Increase in cash due to merger | 4,112 | 10,355 | |
Receipt of government grants | 300 | ||
Sub-total | 456,778 | 1,140,664 | 914,542 |
Cash outflows for investing activities: | |||
Increase in short-term financial instruments, net | (156,012) | (385,612) | |
Increase in short-term investment securities, net | (28,975) | (6,334) | |
Increase in short-term loans | (205,878) | (239,303) | (370,378) |
Increase in long-term loans | (5,869) | (32,287) | (16,701) |
Increase in long-term financial instruments | (2,034) | (342) | (10,008) |
Acquisitions of long-term investment securities | (19,328) | (30,949) | (312,261) |
Acquisitions of investments in associates and joint ventures | (193,100) | (130,388) | (65,080) |
Acquisitions of property and equipment | (2,715,859) | (2,490,455) | (2,478,778) |
Acquisitions of intangible assets | (145,740) | (635,387) | (127,948) |
Increase in deposits | (26,377) | (12,943) | (12,536) |
Increase in other non-current assets | (47) | (763) | (2,542) |
Acquisitions of businesses, net of cash acquired | (4,498) | (13,197) | |
Acquisitions of subsidiaries, net of cash acquired | (26,566) | (19,032) | |
Liquidation of subsidiary | (1,600) | (191) | |
Sub-total | (3,527,385) | (3,602,872) | (3,795,041) |
Net cash used in investing activities | (3,070,607) | (2,462,208) | (2,880,499) |
Cash inflows from financing activities: | |||
Proceeds from short-term borrowings, net | 127,386 | ||
Proceeds from issuance of debentures | 973,291 | 776,727 | 1,375,031 |
Proceeds from long-term borrowings | 120,000 | 49,000 | |
Cash inflows from settlement of derivatives | 188 | 251 | 175 |
Cash received from transfer of interests in subsidiaries to non-controlling interests | 40,938 | 35,646 | |
Sub-total | 1,261,803 | 861,624 | 1,375,206 |
Cash outflows for financing activities: | |||
Decrease in short-term borrowings, net | (257,386) | (106,600) | |
Repayments of long-term account payables-other | (305,476) | (122,723) | (191,436) |
Repayments of debentures | (842,733) | (770,000) | (620,000) |
Repayments of long-term borrowings | (32,701) | (33,387) | (21,924) |
Cash outflows from settlement of derivatives | (105,269) | (655) | |
Payments of finance lease liabilities | (26) | (3,206) | |
Payments of dividends | (706,091) | (706,091) | (668,494) |
Payments of interest on hybrid bonds | (16,840) | (16,840) | (16,840) |
Acquisitions of treasury shares | (490,192) | ||
Transactions with non-controlling shareholders | (79,311) | (220,442) | |
Sub-total | (2,088,421) | (1,906,453) | (2,339,789) |
Net cash used in financing activities | (826,618) | (1,044,829) | (964,583) |
Net increase (decrease) in cash and cash equivalents | (41,405) | 736,131 | (66,953) |
Cash and cash equivalents at beginning of the year | 1,505,242 | 768,922 | 834,429 |
Effects of exchange rate changes on cash and cash equivalents | (6,102) | 189 | 1,446 |
Cash and cash equivalents at end of the year | ₩ 1,457,735 | ₩ 1,505,242 | ₩ 768,922 |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Reporting Entity | 1 . Reporting Entity (1) General SK Telecom Co., Ltd. (“the Parent Company”) was incorporated in March 1984 under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The Parent Company mainly provides wireless telecommunications services in Korea. The head office of the Parent Company is located at 65, Eulji-ro, Jung-gu, The Parent Company’s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of December 31, 2017, the Parent Company’s total issued shares are held by the following shareholders: Number of Percentage of SK Holdings Co., Ltd. 20,363,452 25.22 National Pension Service 7,392,350 9.16 Institutional investors and other minority shareholders 42,853,358 53.07 Treasury shares 10,136,551 12.55 Total number of shares 80,745,711 100.00 These consolidated financial statements comprise the Parent Company and its subsidiaries (together referred to as the “Group” and individuals as “Group entities”). SK Holdings Co., Ltd. is the ultimate controlling entity of the Parent Company. (2) List of subsidiaries The list of subsidiaries as of December 31, 2017 and 2016 is as follows: Ownership (%)(*1) Subsidiary Location Primary business Dec. 31, Dec. 31, Subsidiaries owned by the Parent Company SK Telink Co., Ltd.(*2) Korea Telecommunication and MVNO service 100.0 85.9 SK Communications Co., Ltd.(*3) Korea Internet website services 100.0 64.5 SK Broadband Co., Ltd Korea Telecommunication services 100.0 100.0 PS&Marketing Corporation Korea Communications device retail business 100.0 100.0 SERVICEACE Co., Ltd. Korea Customer center management service 100.0 100.0 SERVICE TOP Co., Ltd. Korea Customer center management service 100.0 100.0 Network O&S Co., Ltd. Korea Base station maintenance service 100.0 100.0 SK Planet Co., Ltd. Korea Telecommunication service 98.1 98.1 IRIVER LIMITED(*4, 5) Korea Manufacturing digital audio players and other portable media devices. 45.9 48.9 SK Telecom China Holdings Co., Ltd. China Investment 100.0 100.0 SK Global Healthcare Business Group, Ltd. Hong Kong Investment 100.0 100.0 SKT Vietnam PTE. Ltd. Singapore Telecommunication service 73.3 73.3 SKT Americas, Inc. USA Information gathering and consulting 100.0 100.0 YTK Investment Ltd. Cayman Islands Investment association 100.0 100.0 Atlas Investment Cayman Islands Investment association 100.0 100.0 Entrix Co., Ltd.(*6) Korea Cloud streaming services — 100.0 SK techx Co., Ltd. Korea System software development and supply 100.0 100.0 One Store Co., Ltd. Korea Telecommunication services 65.5 65.5 Subsidiaries owned by SK Planet Co., Ltd. SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) Korea Data base and internet website service 100.0 100.0 SK Planet Japan, K. K.(*5) Japan Digital contents sourcing service 79.5 100.0 SK Planet Global PTE. Ltd. Singapore Digital contents sourcing service 100.0 100.0 SKP GLOBAL HOLDINGS PTE. LTD. Singapore Investment 100.0 100.0 SKP America LLC. USA Digital contents sourcing service 100.0 100.0 shopkick Management Company, Inc. USA Investment 100.0 100.0 shopkick, Inc. USA Reward points-based in-store 100.0 100.0 Planet11 E-commerce India Electronic commerce platform service — 99.0 11street (Thailand) Co., Ltd. Thailand Electronic commerce 100.0 100.0 Hello Nature Ltd. Korea Retail of agro-fisheries and livestock 100.0 100.0 Subsidiaries owned by IRIVER LIMITED iriver Enterprise Ltd. Hong Kong Management of Chinese subsidiary 100.0 100.0 iriver Inc. USA Marketing and sales in North America 100.0 100.0 iriver China Co., Ltd. China Sales and manufacturing MP3,4 in China 100.0 100.0 Dongguan iriver Electronics Co., Ltd. China Sales and manufacturing e-book 100.0 100.0 groovers JP Ltd. Japan Digital music contents sourcing and distribution service 100.0 100.0 S.M. LIFE DESIGN COMPANY JAPAN INC.(*6) Japan Selling of goods in Japan 100.0 — S.M. Mobile Communications JAPAN Inc.(*6) Japan Digital contents service 100.0 — Subsidiaries owned by SK Telink Co., Ltd. NSOK Co., Ltd. (formerly, Neosnetworks Co., Ltd.)(*7) Korea Guarding of facilities 100.0 100.0 Subsidiaries owned by SK techx Co., Ltd. K-net Korea Capital investing in startups 59.0 59.0 Subsidiaries owned by SK Broadband Co., Ltd. Home & Service Co., Ltd.(*6) Korea Operation of information and communication facility 100.0 — SK stoa Co., Ltd.(*6) Korea Other telecommunication retail business 100.0 — Others(*8) SK Telecom Innovation Fund, L.P. USA Investment 100.0 100.0 SK Telecom China Fund I L.P. Cayman Islands Investment 100.0 100.0 Stonebridge Cinema Fund(*6) Korea Capital investing in startups — 60.0 (*1) The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or subsidiaries of the Parent Company. (*2) On September 28, 2017, the board of directors of the Parent Company resolved to acquire the shares of SK Telink Co., Ltd. held by the non-controlling (*3) On November 24, 2016, the board of directors of the Parent Company resolved to acquire all of the shares of SK Communications Co., Ltd. held by the non-controlling (*4) Although the Group has less than 50% of the voting rights of IRIVER LIMITED, the Group is considered to have control over IRIVER LIMITED since the Group holds significantly more voting rights than any other vote holder or organized group of vote holders, and the other shareholdings are widely dispersed. (*5) The ownership interest changed due to the non-proportional (*6) Details of changes in consolidation scope for the year ended December 31, 2017 are presented in Note 1-(4). (*7) During the year ended December 31, 2017, Neosnetworks Co., Ltd. changed its name to NSOK Co., Ltd. (*8) Others are owned together by Atlas Investment and one other subsidiary of the Parent Company. (3) Condensed financial information of subsidiaries Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2017 is as follows: (In millions of won) As of December 31, 2017 2017 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 455,685 104,727 350,958 389,944 32,728 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 113,515 62,795 50,720 193,256 1,249 SK Communications Co., Ltd. 90,923 28,410 62,513 47,546 (35,454 ) SK Broadband Co., Ltd. 3,802,349 2,616,317 1,186,032 3,050,083 32,030 K-net 250,747 35,900 214,847 — 196,250 PS&Marketing Corporation 506,883 288,881 218,002 1,766,142 391 SERVICEACE Co., Ltd. 77,681 45,501 32,180 197,408 2,599 SERVICE TOP Co., Ltd. 65,406 41,860 23,546 186,117 3,309 Network O&S Co., Ltd. 87,000 45,248 41,752 255,841 6,283 SK Planet Co., Ltd. 1,534,866 920,677 614,189 1,082,685 (513,667 ) IRIVER LIMITED(*) 130,878 17,204 113,674 69,452 (14,092 ) SKP America LLC. 412,251 — 412,251 — (57 ) SK techx Co., Ltd. 237,700 41,561 196,139 195,948 26,827 One Store Co., Ltd. 104,891 39,874 65,017 115,596 (27,254 ) Home & Service Co., Ltd. 83,698 38,350 45,348 141,739 11 shopkick Management Company, Inc. 338,650 — 338,650 — (238 ) shopkick, Inc. 37,336 32,219 5,117 48,836 (25,249 ) (*) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and six other subsidiaries of IRIVER LIMITED. Information for the other subsidiaries in the above summary is based on their separate financial statements. Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2016 is as follows: (In millions of won) As of December 31, 2016 2016 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 440,956 122,741 318,215 406,930 61,585 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 107,768 56,596 51,172 173,816 4,958 SK Communications Co., Ltd. 128,233 31,592 96,641 58,154 (20,411 ) SK Broadband Co., Ltd. 3,523,494 2,376,429 1,147,065 2,942,976 21,526 PS&Marketing Corporation 546,803 328,846 217,957 1,679,735 11,908 SERVICEACE Co., Ltd. 67,735 40,014 27,721 199,828 3,605 SERVICE TOP Co., Ltd. 59,004 39,121 19,883 186,740 3,971 Network O&S Co., Ltd. 69,774 35,798 33,976 218,917 3,755 SK Planet Co., Ltd.(*1) 1,935,663 834,151 1,101,512 1,177,323 (30,959 ) IRIVER LIMITED(*2) 50,075 11,941 38,134 52,328 (9,987 ) SKP America LLC. 439,209 — 439,209 — 1,226 SK techx Co., Ltd. 212,819 52,563 160,256 193,396 28,213 One Store Co., Ltd. 134,207 41,738 92,469 106,809 (22,161 ) shopkick Management Company, Inc. 354,627 — 354,627 — (85 ) shopkick, Inc. 37,947 34,024 3,923 45,876 (27,149 ) (*1) The separate financial information of SK Planet Co., Ltd. includes pre-merger (*2) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and five other subsidiaries of IRIVER LIMITED. Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2015 is as follows: (In millions of won) As of December 31, 2015 2015 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 309,955 113,878 196,077 431,368 55,781 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 89,452 42,414 47,038 143,255 5,549 SK Communications Co., Ltd. 152,496 35,014 117,482 80,147 (14,826 ) SK Broadband Co., Ltd. 3,291,707 2,170,484 1,121,223 2,731,344 10,832 PS&Marketing Corporation 509,580 300,364 209,216 1,791,944 4,835 SERVICEACE Co., Ltd. 65,424 34,240 31,184 206,338 2,778 SERVICE TOP Co., Ltd. 61,897 38,482 23,415 197,092 4,396 Network O&S Co., Ltd. 77,426 48,069 29,357 210,676 6,466 SK Planet Co., Ltd. 2,406,988 784,631 1,622,357 1,624,630 (75,111 ) IRIVER LIMITED(*) 60,434 12,377 48,057 55,637 635 SKP America LLC. 380,141 — 380,141 — 791 Entrix Co., Ltd. 30,876 3,186 27,690 4,895 (1,826 ) shopkick Management Company, Inc. 306,248 7 306,241 7 (2,455 ) shopkick, Inc. 25,388 32,243 (6,855 ) 33,851 (52,390 ) (*) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and five other subsidiaries of IRIVER LIMITED. (4) Changes in subsidiaries The list of subsidiaries that were newly included in consolidation during the year ended December 31, 2017 is as follows: Subsidiary Reason S.M. LIFE DESIGN COMPANY JAPAN INC. (Refer to Note10) Acquired by IRIVER LIMITED S.M. Mobile Communications JAPAN Inc. (Refer to Note10) Acquired by IRIVER LIMITED Home & Service Co., Ltd. Established by SK Boradband Co., Ltd. SK stoa Co., Ltd. Established by SK Boradband Co., Ltd. The list of subsidiaries that were excluded from consolidation during the year ended December 31, 2017 is as follows: Subsidiary Reason Entrix Co., Ltd. Merged into SK techx Co., Ltd. during the year ended December 31, 2017. Planet11 E-commerce Disposed during the year ended December 31, 2017. Stonebridge Cinema Fund Liquidated during the year ended December 31, 2017. (5) The information of significant non-controlling non-controlling (In millions of won) K-net Culture and IRIVER LIMITED One Store Co., Ltd. Ownership of non-controlling 41.00 54.10 34.46 As of December 31, 2017 Current assets ₩ 625 74,873 76,810 Non-current 250,122 56,005 28,081 Current liabilities (35,900 ) (9,563 ) (38,547 ) Non-current — (7,641 ) (1,327 ) Net assets 214,847 113,674 65,017 Carrying amount of non-controlling 88,087 63,382 22,405 2017 Revenue ₩ — 69,452 115,596 Profit (loss) for the year 196,250 (14,092 ) (27,254 ) Total comprehensive profit (loss) 201,693 (14,278 ) (27,452 ) Profit (loss) attributable to non-controlling 80,463 (7,438 ) (9,392 ) Net cash provided by (used in) operating activities ₩ (7 ) (7,553 ) 13,912 Net cash used in investing activities (600 ) (45,002 ) (2,000 ) Net cash provided by (used in) financing activities — 64,571 (7 ) Net increase (decrease) in cash and cash equivalents (607 ) 12,016 11,905 (In millions of won) SK Communications Co., Ltd. One Store Co., Ltd. Ownership of non-controlling 35.46 34.46 As of December 31, 2016 Current assets ₩ 81,806 90,414 Non-current 46,427 43,793 Current liabilities (30,098 ) (40,969 ) Non-current (1,494 ) (769 ) Net assets 96,641 92,469 Carrying amount of non-controlling 34,265 31,863 2016 Revenue ₩ 58,154 106,809 Loss for the year 20,411 22,161 Total comprehensive loss 20,841 22,402 Loss attributable to non-controlling 7,240 6,772 Net cash used in operating activities ₩ (4,891 ) (4,447 ) Net cash provided by (used in) investing activities 3,625 (20,796 ) Net cash provided by financing activities — 51,426 Net increase(decrease) in cash and cash equivalents (1,266 ) 26,183 (In millions of won) SK Communications Co., Ltd. Ownership of non-controlling 35.46 As of December 31, 2015 Current assets ₩ 95,662 Non-current 56,834 Current liabilities (33,306 ) Non-current (1,708 ) Net assets 117,482 Carrying amount of non-controlling 41,659 2015 Revenue ₩ 80,147 Loss for the period 14,826 Total comprehensive loss 16,698 Loss attributable to non-controlling 5,254 Net cash used in operating activities ₩ (2,706 ) Net cash provided by investing activities 8,723 Net cash provided by financing activities — Net increase in cash and cash equivalents 6,017 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
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Basis of Presentation | 2. Basis of Presentation (1) Statement of compliance These consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were authorized for issuance by the Board of Directors on February 2, 2018. (2) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statement of financial position: • derivative financial instruments measured at fair value; • financial instruments at fair value through profit or loss measured at fair value; • available-for-sale • liabilities(assets) for defined benefit plans recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets. (3) Functional and presentation currency Financial statements of Group entities within the Group are prepared in functional currency of each group entity, which is the currency of the primary economic environment in which each entity operates. Consolidated financial statements of the Group are presented in Korean won, which is the Parent Company’s functional and presentation currency. (4) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively. 1) Critical judgments Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in Note 4 for the following areas: consolidation: whether the Group has de facto control over an investee, and classification of lease. 2) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: allowance for doubtful accounts, estimated useful lives of property and equipment and intangible assets, impairment of goodwill, recognition of provision, measurement of defined benefit liabilities, and recognition of deferred tax assets (liabilities). 3) Fair value measurement A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Information about assumptions used for fair value measurements are included in Note 35. |
Changes in accounting policies
Changes in accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
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Changes in accounting policies | 3. Changes in accounting policies Except the following amendments to the standards that are effective for annual periods beginning on January 1, 2017, the accounting policies have been applied consistently to all periods presented in these consolidated financial statements. (1) International Accounting Standards (“IAS”) 7, Cash Flow Statements The Group adopted the amendments to IAS 7, which form a part of the IASB’s broader disclosure in the period beginning on January 1, 2017. The amendment requires the Group to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash (2) IAS 12, Income Taxes The Group adopted the amendments to IAS 12 in the period beginning January 1, 2017. The amendments clarify the necessity to consider whether there are restrictions on tax laws on the sources of taxable profits which may be used for the reversal of deductible temporary difference. In addition, the amendments provide the guidance on how to estimate the probable future taxable profit and specify the circumstances where an asset can be recovered for more than its carrying amount. These amendments have no impact on the Group’s consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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Significant Accounting Policies | 4. Significant Accounting Policies The significant accounting policies applied by the Group in the preparation of its consolidated financial statements in accordance with IFRS are included below. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. (1) Operating segments An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group’s operating segments have been determined to be each business unit, for which the Group generates separately identifiable financial information that is regularly reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance. The Group has four reportable segments which consist of cellular services, fixed-line telecommunication services, e-commerce The Group’s chief operating decision maker receives and reviews operating income based on Korean IFRS as the measure of segment profit and loss for each operating segment. Segment operating income differs from consolidated operating income used in the Group’s consolidated statements of income. Segment operating profit does not include certain items such as fee revenues, gain/loss from disposal of property, plant, equipment and intangible assets, impairment losses on property, plant, equipment and intangible assets, donations, bad debt expense and penalties. The chief operating decision maker does not receive any information about segment assets and liabilities. (2) Basis of consolidation (i) Business combination A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. Consideration transferred is generally measured at fair value, identical to the measurement of identifiable net assets acquired at fair value. The difference between the acquired company’s fair value and the consideration transferred is accounted for goodwill. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. Acquisition-related costs are expensed in the periods in which the costs are incurred and the services are received excluding costs to issue debt or equity securities recognized based on IAS 32 and 39. Consideration transferred does not include the amount settled in relation to the pre-existing pre-existing Contingent consideration is measured at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. If contingent consideration is not classified as equity, the Group subsequently recognizes changes in fair value of contingent consideration through profit or loss. (ii) Non-controlling Non-controlling Changes in a Controlling Company’s ownership interest in a subsidiary that do not result in the Controlling Company losing control of the subsidiary are accounted for as equity transactions. (iii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of an investee begins from the date the Group obtains control of the investee and cease when the Group loses control of the investee. (iv) Loss of control If the Group loses control of a subsidiary, the Group derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position and recognizes gain or loss associated with the loss of control attributable to the former controlling interest. Any investment retained in the former subsidiary is recognized at its fair value when control is lost. (v) Interest in investees accounted for using the equity method Interest in investees accounted for using the equity method composed of interest in associates and joint ventures. An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. A joint venture is a joint arrangement whereby the Group that has joint control of the arrangement has rights to the net assets of the arrangement. The investment in an associate and a joint venture is initially recognized at cost including transaction costs and the carrying amount is increased or decreased to recognize the Group’s share of the profit or loss and changes in equity of the associate or the joint venture after the date of acquisition. (vi) Intra-group transactions Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The Group’s share of unrealized gain incurred from transactions with investees accounted for using the equity method are eliminated and unrealized loss are eliminated using the same basis if there are no evidence of asset impairments. (vii) Business combinations under common control SK Holdings Co., Ltd. is the ultimate controlling entity of the Group. The assets and liabilities acquired under business combination under common control are recognized at the carrying amounts in the ultimate controlling shareholder’s consolidated financial statements. The difference between consideration and carrying amount of net assets acquired is added to or subtracted from capital surplus and others. (3) Cash and cash equivalents Cash and cash equivalents comprise cash balances, call deposits and financial assets with maturities of three months or less from the acquisition date that are easily convertible to cash and subject to an insignificant risk of changes in their fair value. (4) Inventories Inventories are stated at the acquisition cost using the average method. During the period, a perpetual inventory system is used to track inventory quantities, which is adjusted to the physical inventory counts performed at the period end. When the net realizable value of inventories is less than the acquisition cost, the carrying amount is reduced to the net realizable value and any difference is charged to current operations as operating expenses. (5) Non-derivative The Group recognizes and measures non-derivative held-to-maturity available-for-sale Upon initial recognition, non-derivative (i) Financial assets at fair value through profit or loss A financial asset is classified as financial asset at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (ii) Held-to-maturity A non-derivative held-to-maturity held-to-maturity (iii) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method except for loans and receivables of which the effect of discounting is immaterial. (iv) Available-for-sale Available-for-sale non-derivative available-for-sale held-to-maturity (v) De-recognition The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. (vi) Offsetting between financial assets and financial liabilities Financial assets and liabilities are offset and the net amount is presented in the consolidated statement of financial position only when the Group currently has a legally enforceable right to offset the recognized amounts, and there is the intention to settle on a net basis or to realize the asset and settle the liability simultaneously. (6) Derivative financial instruments, including hedge accounting Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. (i) Hedge accounting The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Group designates derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge). On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. Fair value hedge Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value for a derivative hedging instrument and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the consolidated statement of income. The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria for hedge accounting. Any adjustment arising from gain or loss on the hedged item attributable to the hedged risk is amortized to profit or loss from the date the hedge accounting is discontinued. Cash flow hedge When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss. (ii) Separable embedded derivatives Embedded derivatives are separated from the host contract and accounted for separately only if the following criteria have been met: (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract; (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and (c) the hybrid (combined) instrument is not measured at fair value with changes in fair value recognized in profit or loss. Changes in the fair value of separable embedded derivatives are recognized immediately in profit or loss. (iii) Other derivative financial instruments Changes in the fair value of other derivative financial instrument not designated as a hedging instrument are recognized immediately in profit or loss. (7) Impairment of financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that a financial asset is impaired includes following loss events: • significant financial difficulty of the issuer or obligor; • a breach of contract, such as default or delinquency in interest or principal payments; • the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; • it becoming probable that the borrower will enter bankruptcy or other financial reorganization; • the disappearance of an active market for that financial asset because of financial difficulties; or • observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. If financial assets have objective evidence that they are impaired, impairment losses are measured and recognized. (i) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. The Group can recognize impairment losses directly or by establishing an allowance account. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the previously recognized impairment loss is reversed either directly or by adjusting an allowance account. (ii) Financial assets carried at cost If there is objective evidence that an impairment loss has occurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. (iii) Available-for-sale When a decline in the fair value of an available-for-sale available-for-sale available-for-sale (8) Property and equipment Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Subsequent to initial recognition, an item of property and equipment is carried at its cost less any accumulated depreciation and any accumulated impairment losses. Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Property and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. A component that is significant compared to the total cost of property and equipment is depreciated over its separate useful life. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment and are recognized as other non-operating The estimated useful lives of the Group’s property and equipment are as follows: Useful lives (years) Buildings and structures 15 ~ 40 Machinery 3 ~ 15 Other property and equipment 2 ~ 10 Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate. (9) Borrowing costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. Financial assets are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period do not exceed the amount of borrowing costs incurred during that period. (10) Intangible assets Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses. Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, club memberships are expected to be available for use as there are no foreseeable limits to the periods. This intangible asset is determined as having indefinite useful lives and not amortized. The estimated useful lives of the Group’s intangible assets are as follows: Useful lives (years) Frequency usage rights 5 ~ 13 Land usage rights 5 Industrial rights 5, 10 Development costs 3 ~ 5 Facility usage rights 10, 20 Customer relations 3 ~ 7 Other 3 ~ 20 Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life assessments for those assets. Changes are accounted for as changes in accounting estimates. Expenditures on research activities are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. (11) Government grants Government grants are not recognized unless there is reasonable assurance that the Group will comply with the grant’s conditions and that the grant will be received. (i) Grants related to assets Government grants whose primary condition is that the Group purchases, constructs or otherwise acquires a long-term asset are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduction to depreciation expense. (ii) Grants related to income Government grants which are intended to compensate the Group for expenses incurred are deducted from the related expenses. (12) Investment property Property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses. Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Investment property except for land, are depreciated on a straight-line basis over 15~40 years as estimated useful lives. Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate. (13) Impairment of non-financial The carrying amounts of the Group’s non-financial non-current The Group estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax An impairment loss is recognized in profit or loss to the extent the carrying amount of the asset exceeds its recoverable amount. Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies arising from the business acquired. Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (14) Leases The Group classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Group assumes substantially all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases. (i) Finance leases At the commencement of the lease term, the Group recognizes as finance assets and finance liabilities in its consolidated statement of financial position, the lower amount of the fair value of the leased property and the present value of the minimum lease payments, each determined at the inception of the lease. Any initial direct costs are added to the amount recognized as an asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred. The depreciable amount of a leased asset is allocated to each accounting period during the period of expected use on a systematic basis consistent with the depreciation policy the Group adopts for depreciable assets that are owned. If there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life. The Group reviews to determine whether the leased assets are impaired at the reporting date. (ii) Operating leases Leases where the lessor retains a significant portion of the risks and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognized in profit or loss on a straight-line basis over the period of the lease. (iii) Determining whether an arrangement contains a lease Determining whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires an assessment of whether fulfillment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset. At inception or reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a financial lease that it is impracticable to separate the payments reliably, the Group recognizes an asset and a liability at an amount equal to the fair value of the underlying asset that was identified as the subject of the lease. Subsequently, the liability is reduced as payments are made and an imputed finance charge on the liability is recognized using the Group’s incremental borrowing rate of interest. (15) Non-current Non-current non-current Impairment of Assets A non-current (16) Non-derivative The Group classifies non-derivative (i) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such upon initial recognition. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issue of the financial liability are recognized in profit or loss as incurred. (ii) Other financial liabilities Non-derivative The Group derecognizes a financial liability from the consolidated statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires). (17) Employee benefits (i) Short-term employee benefits Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service. (ii) Other long-term employee benefits Other long-term employee benefits include employee benefits that are settled beyond 12 months after the end of the period in which the employees render the related service. The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise. (iii) Retirement benefits: defined contribution plans When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Group recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments or a cash refund. (iv) Retirement benefits: defined benefit plans At the end of reporting period, defined benefits liabilities relating to defined benefit plans are recognized at present value of defined benefit obligations net of fair value of plan assets. The calculation is performed annually by an independent actuary using the projected unit credit method. When the fair value of plan assets exceeds the present value of the defined benefit obligation, the Group recognizes an asset, to the extent of the present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Group determines net interests on net defined benefit liability (asset) by multiplying discount rate determined at the beginning of the annual reporting period and considers changes in net defined benefit liability (asset) from contributions and benefit payments. Net interest costs and other costs relating to the defined benefit plan are recognized through profit or loss. When the plan amendment or curtailment occurs, gains or losses on amendment or curtailment in benefits for the past service provided are recognized through profit or loss. The Group recognizes gain or loss on a settlement when the settlement of defined benefit plan occurs. (v) Termination benefits The Group recognizes a liability and expense for termination benefits at the earlier of the period when the Group can no longer withdraw the offer of those benefits and the period when the Group recognizes costs for a restructuring that involves the payment of termination benefits. If benefits are payable more than 12 months after the reporting period, they are discounted to their present value. (18) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement is recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settl |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2017 | |
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Operating Segments | 5. Operating Segments The Group’s operating segments have been identified to be each business unit, by which the Group provides independent services and merchandise. The Group’s reportable segments are cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions and platform services; fixed-line fixed-line e-commerce (1) Segment information for the years ended December 31, 2017, 2016 and 2015 is as follows: (In millions of won) 2017 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,873,543 3,586,887 1,091,903 788,836 20,341,169 (2,821,156 ) 17,520,013 Inter-segment revenue 1,611,408 862,736 47,732 299,280 2,821,156 (2,821,156 ) — External revenue 13,262,135 2,724,151 1,044,171 489,556 17,520,013 — 17,520,013 Depreciation and amortization 2,390,016 592,877 54,486 60,087 3,097,466 — 3,097,466 Operating profit (loss) 1,714,078 167,515 (267,829 ) (77,138 ) 1,536,626 (312,054 ) 1,224,572 Gain relating to investments in subsidiaries, associates and joint ventures, net 2,245,732 Finance income 366,561 Finance costs (433,616 ) Profit before income tax 3,403,249 (In millions of won) 2016 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,635,720 3,349,905 1,177,323 726,374 19,889,322 (2,797,506 ) 17,091,816 Inter-segment revenue 1,630,811 698,712 176,007 291,976 2,797,506 (2,797,506 ) — External revenue 13,004,909 2,651,193 1,001,316 434,398 17,091,816 — 17,091,816 Depreciation and amortization 2,262,363 551,811 68,298 59,414 2,941,886 — 2,941,886 Operating profit (loss) 1,799,127 132,459 (365,194 ) (30,648 ) 1,535,744 (232,326 ) 1,303,418 Gain relating to investments in subsidiaries, associates and joint ventures, net 544,501 Finance income 575,050 Finance costs (326,830 ) Profit before income tax 2,096,139 (In millions of won) 2015 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,962,689 3,162,712 1,703,278 410,265 20,238,944 (3,102,210 ) 17,136,734 Inter-segment revenue 1,693,411 668,139 643,299 97,361 3,102,210 (3,102,210 ) — External revenue 13,269,278 2,494,573 1,059,979 312,904 17,136,734 — 17,136,734 Depreciation and amortization 2,174,819 531,106 112,537 26,833 2,845,295 — 2,845,295 Operating profit (loss) 1,678,339 108,252 (6,740 ) (71,845 ) 1,708,006 (212,581 ) 1,495,425 Gain relating to investments in subsidiaries, associates and joint ventures, net 786,140 Finance income 103,900 Finance costs (350,100 ) Profit before income tax 2,035,365 (2) Reconciliation of total segment operating income to consolidated operating profit from continuing operations for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Total segment operating income ₩ 1,536,626 1,535,744 1,708,006 Other operating income: Gain on disposal of property and equipment and intangible assets 13,991 6,908 7,140 Others(*1) 18,006 59,640 23,795 31,997 66,548 30,935 Other operating expenses: Impairment loss on property and equipment and intangible assets (54,946 ) (24,506 ) (35,845 ) Loss on disposal of property and equipment and intangible assets (60,086 ) (63,797 ) (21,392 ) Donations (112,634 ) (96,633 ) (72,454 ) Bad debt for accounts receivable — other (5,793 ) (40,312 ) (15,323 ) Others(*2) (110,592 ) (73,626 ) (98,502 ) (344,051 ) (298,874 ) (243,516 ) Consolidated operating profit from continuing operations ₩ 1,224,572 1,303,418 1,495,425 (*1) Others for the year ended December 31, 2016 include ₩25 billion of penalty refund. (*2) Others for the years ended December 31, 2017, 2016 and 2015 primarily consist of ₩21.4 billion, ₩7.6 billion and ₩29.5 billion of penalties, respectively, and various other expenses with inconsequential amounts. Since there are no intersegment sales of inventory or depreciable assets, there is no unrealized intersegment profit to be eliminated on consolidation. Domestic revenue for the years ended December 31, 2017, 2016 and 2015 amounts to ₩17,374 billion, ₩16,940 billion and ₩17,083 billion, respectively. Domestic non-current non-current No single customer contributed 10% or more to the Group’s total sales for the years ended December 31, 2017, 2016 and 2015. (3) The Group’s operating revenue by service type is as follows: (In millions of won) 2017 2016 2015 Cellular revenue: Wireless service(*1) ₩ 10,638,961 10,582,963 10,720,518 Cellular interconnection 592,754 614,446 710,026 Wireless device sales 1,052,203 922,449 963,354 Miscellaneous(*2) 978,217 885,051 875,380 13,262,135 13,004,909 13,269,278 Fixed-line telecommunication services revenue: Fixed line telephone service 316,763 357,754 420,611 Fixed line interconnection 116,070 134,089 57,130 Broadband internet service and advanced media platform service 1,641,645 1,472,776 1,308,789 International calling service 89,412 95,986 99,106 Miscellaneous(*3) 560,261 590,588 608,937 2,724,151 2,651,193 2,494,573 E-commerce 1,044,171 1,001,316 1,059,979 Other revenue: Portal service(*5) 43,952 54,177 71,812 Miscellaneous(*6) 445,604 380,221 241,092 489,556 434,398 312,904 Consolidated operating revenue ₩ 17,520,013 17,091,816 17,136,734 (*1) Wireless service revenue includes revenue from wireless voice and data transmission services principally derived through monthly plan-based value-added (*2) Miscellaneous cellular services revenue includes revenue from IoT solutions as well as other miscellaneous cellular services. (*3) Miscellaneous fixed-line telecommunication services revenue includes revenues from business communications services (other than fixed-line (*4) E-commerce (*5) Portal service revenue includes revenues from Nate, and online portal service operated by SK Communications. (*6) Miscellaneous other revenue includes revenues from hardware business, security business operated by one of the Group’s subsidiaries, NSOK Co., Ltd., marketing and sales solutions business operated by one of the Group’s subsidiaries, SK m&service Co., Ltd., and online open marketplace for mobile applications among other operations. |
Restricted Deposits
Restricted Deposits | 12 Months Ended |
Dec. 31, 2017 | |
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Restricted Deposits | 6. Restricted Deposits Deposits which are restricted in use as of December 31, 2017 and 2016 are summarized as follows: (In millions of won) December 31, 2017 December 31, 2016 Short-term financial instruments(*) ₩ 89,850 90,278 Long-term financial instruments(*) 1,222 937 ₩ 91,072 91,215 (*) Financial instruments include charitable trust fund established by the Group where profits from the fund are donated to charitable institutions. As of December 31, 2017, the funds cannot be withdrawn before maturity. |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and Other Receivables | 7. Trade and Other Receivables (1) Details of trade and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Gross Allowances for Carrying amount Current assets: Accounts receivable — trade ₩ 2,365,270 (239,263 ) 2,126,007 Short-term loans 63,380 (550 ) 62,830 Accounts receivable — other 1,336,247 (75,412 ) 1,260,835 Accrued income 3,979 — 3,979 Others 3,927 — 3,927 3,772,803 (315,225 ) 3,457,578 Non-current Long-term loans 97,635 (46,761 ) 50,874 Long-term accounts receivable — other 287,048 — 287,048 Guarantee deposits 292,590 — 292,590 Long-term accounts receivable — trade 12,933 (185 ) 12,748 690,206 (46,946 ) 643,260 ₩ 4,463,009 (362,171 ) 4,100,838 (In millions of won) December 31, 2016 Gross amount Allowances for Carrying amount Current assets: Accounts receivable — trade ₩ 2,482,502 (241,576 ) 2,240,926 Short-term loans 59,526 (547 ) 58,979 Accounts receivable — other 1,200,421 (78,977 ) 1,121,444 Accrued income 2,780 — 2,780 Others 3,937 — 3,937 3,749,166 (321,100 ) 3,428,066 Non-current Long-term loans 113,456 (47,980 ) 65,476 Long-term accounts receivable — other 149,669 — 149,669 Guarantee deposits 298,964 — 298,964 Long-term accounts receivable — trade 20,637 (252 ) 20,385 582,726 (48,232 ) 534,494 ₩ 4,331,892 (369,332 ) 3,962,560 (2) Changes in allowances for doubtful accounts of trade and other receivables for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Balance at January 1 ₩ 369,332 344,016 Bad debt expense 40,377 78,132 Write-offs (70,802 ) (79,891 ) Other 23,264 27,075 Balance at December 31 ₩ 362,171 369,332 (3) Details of overdue but not impaired, and impaired trade and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Accounts receivable - trade Other Accounts receivable - trade Other Neither overdue nor impaired ₩ 1,585,714 1,930,261 1,715,966 1,617,349 Overdue but not impaired 29,304 3,113 41,613 5,663 Impaired 763,185 151,432 745,560 205,741 2,378,203 2,084,806 2,503,139 1,828,753 Allowances for doubtful accounts (239,448 ) (122,723 ) (241,828 ) (127,504 ) ₩ 2,138,755 1,962,083 2,261,311 1,701,249 The Group establishes allowances for doubtful accounts based on the likelihood of recoverability of trade and other receivables based on their aging at the end of the period, past customer default experience, customer credit status, and economic and industrial factors. (4) The aging of overdue but not impaired accounts receivable as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Accounts receivable - trade Other Accounts Other Less than 1 month ₩ 7,150 2,679 11,543 2,838 1 ~ 3 months 1,663 44 9,144 140 3 ~ 6 months 1,576 124 4,643 1 More than 6 months 18,915 266 16,283 2,684 ₩ 29,304 3,113 41,613 5,663 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
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Inventories | 8. Inventories Details of inventories as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Acquisition Write-down Carrying Acquisition Write-down Carrying Merchandise ₩ 251,463 (7,488 ) 243,975 232,871 (6,913 ) 225,958 Finished goods 1,889 (557 ) 1,332 1,931 (363 ) 1,568 Work-in-process 1,906 (956 ) 950 2,895 (347 ) 2,548 Raw materials and supplies 29,395 (3,249 ) 26,146 31,141 (1,369 ) 29,772 ₩ 284,653 (12,250 ) 272,403 268,838 (8,992 ) 259,846 The amount of the inventory write-downs and write-off (In millions of won) 2017 2016 2015 Charged to cost of products that have been resold ₩ 6,079 3,751 1,983 Write-off (2,820 ) (1,299 ) (2,095 ) There are no significant reversals of inventory write-downs for the periods presented. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
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Investment Securities | 9. Investment Securities (1) Details of short-term investment securities as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Beneficiary certificates(*) ₩ 144,386 107,364 (*) The income distributable in relation to beneficiary certificates as of December 31, 2017 were accounted for as accrued income. (2) Details of long-term investment securities as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Equity securities: Marketable equity securities(*1) ₩ 589,202 526,363 Unlisted equity securities etc.(*2) 277,877 295,403 867,079 821,766 Debt securities: Investment bonds 19,928 6,755 ₩ 887,007 828,521 (*1) During the year ended December 31, 2016, the Group sold 3,793,756 shares of Loen Entertainment, Inc. to Kakao Corp. in exchange for 1,357,367 shares of Kakao Corp. and ₩218,037 million in cash. In connection with the sale of Loen Entertainment shares, the Group recognized gain on disposal of long-term investment securities amounting to ₩314,745 million. The Group recognized gain on disposal amounting to ₩138,779 million as the Group disposed its entire marketable equity securities of POSCO Co., Ltd. for ₩305,110 million of cash during the year ended December 31, 2016. In addition, the Group sold 1,357,367 shares of Kakao Corp. in exchange for ₩112,649 million in cash during the year ended December 31, 2017. In connection with the sale of Kakao Corp. shares, the Group recognized loss on disposal of long-term investment securities amounting to ₩35,468 million. (*2) Unlisted equity securities and equity investments whose fair value cannot be measured reliably are recorded at cost. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
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Business Combination | 10. Business Combination (1) 2017 1) Acquisition of S.M. LIFE DESIGN COMPANY JAPAN INC. by IRIVER LIMITED On September 1, 2017, IRIVER LIMITED, a subsidiary of the Parent Company, acquired all of the S.M. LIFE DESIGN COMPANY JAPAN INC.’s shares from S.M. ENTERTAINMENT JAPAN, Inc. in order to enter overseas business and enhance its competitiveness with the consideration of ₩30,000 million in cash. The Group recognized the difference between the consideration paid and the fair value of net assets acquired amounting to ₩21,748 million as goodwill. Subsequent to the acquisition, S.M. LIFE DESIGN COMPANY JAPAN INC. recognized revenues and net profit of amounting to ₩6,365 million and ₩1,244 million, respectively, in 2017. 2) Merger of SM mobile communications Co., Ltd. by IRIVER LIMITED On October 1, 2017, IRIVER LIMITED merged SM mobile communications Co., Ltd. in order to enter contents business and enhance competitiveness of its device business. As a result of merger, IRIVER LIMITED obtained control over S.M. Mobile Communications JAPAN Inc. which was wholly owned by SM mobile communications Co., Ltd. The consideration transferred was measured at the fair value of the shares transferred based on the merger ratio set on October 1, 2017. The Group recognized the difference between the consideration and the fair value of net assets amounting to ₩13,473 million as goodwill. Subsequent to the consummation of the merger, S.M. Mobile Communications JAPAN Inc. recognized no revenue with ₩103 million of net loss in 2017. 3) Considerations paid and assets and liabilities recognized at the acquisition date are as follows: (In millions of won) S.M. LIFE DESIGN S.M. Mobile Communications JAPAN Inc. Considerations paid: Cash and cash equivalents ₩ 30,000 — Shares of IRIVER LIMITED — 24,650 Assets and liabilities acquired: Cash and cash equivalents ₩ 3,434 4,112 Trade and other receivables 1,471 237 Inventories 1,879 — Property and equipment 4 311 Intangible assets 6,677 7,445 Other assets — 41 Trade and other payables (2,563 ) (815 ) Deferred tax liabilities (2,324 ) — Other liabilities (326 ) (154 ) Net assets ₩ 8,252 11,177 (2) 2015 1) General information On April 1, 2015, Neosnetworks Co., Ltd., a subsidiary of the Parent Company, acquired an unmanned machine security business of Joeun Safe Co., Ltd., which provides security and maintenance services, in order to expand infrastructure and enhance competitiveness of its security business. The Group recognized the acquired assets and liabilities at fair value and the difference between the consideration and fair value of net assets as goodwill. 2) Considerations paid and identifiable assets acquired and liabilities assumed Considerations paid and assets in succession recognized at the acquisition date are as follows: (In millions of won) 2015 Considerations paid and liabilities assumed: Cash and cash equivalents ₩ 13,197 Accounts payable — other 1,858 ₩ 15,055 Assets acquired: Property and equipment ₩ 3,208 Intangible assets 8,486 Other assets 1,603 ₩ 13,297 |
Business Combinations under Com
Business Combinations under Common Control | 12 Months Ended |
Dec. 31, 2017 | |
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Business Combinations under Common Control | 11. Business Combinations under Common Control (1) 2016 During the year ended December 31, 2016, the Parent Company distributed its entire ownership interests in Neosnetworks Co., Ltd. to SK Telink Co., Ltd., a subsidiary of the Parent Company as contribution in kind. Neosnetworks Co., Ltd. became a wholly owned subsidiary of SK Telink Co., Ltd. As this transaction is a business combination under common control, SK Telink Co., Ltd. recognized the book value of the assets and liabilities of Neosnetworks Co., Ltd. in its financial statements. There’s no effect on the assets and liabilities of the consolidated financial statements. (2) 2015 During the year ended December 31, 2015, hoppin service division of SK Planet Co., Ltd., a subsidiary of the Parent Company, was spun off from SK Planet Co., Ltd. and was merged into SK Broadband, Co., Ltd., a subsidiary of the Parent Company. There is no impact on the consolidated financial statements as it is a business combination under common control. |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
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Investments in Associates and Joint Ventures | 12. Investments in Associates and Joint Ventures (1) Investments in associates and joint ventures accounted for using the equity method as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Country Ownership (%) Carrying Ownership Carrying Investments in associates: SK China Company Ltd.(*1) China 27.3 ₩ 526,099 9.6 ₩ 46,354 Korea IT Fund(*2) Korea 63.3 257,003 63.3 263,850 KEB HanaCard Co., Ltd.(*3) Korea 15.0 280,988 15.0 265,798 NanoEnTek, Inc. Korea 28.5 38,718 28.5 39,514 SK Industrial Development China Co., Ltd.(*1) Hong Kong — — 21.0 74,717 SK Technology Innovation Company Cayman Islands 49.0 42,511 49.0 47,488 HappyNarae Co., Ltd.(*4) Korea 45.0 21,873 42.5 17,236 SK hynix Inc. Korea 20.1 8,130,000 20.1 6,132,122 SK MENA Investment B.V. Netherlands 32.1 13,853 32.1 15,451 SKY Property Mgmt. Ltd.(*1) Virgin Island — — 33.0 263,225 S.M. Culture & Contents Co., Ltd.(*5) Korea 23.4 64,966 — — Xian Tianlong Science and Technology Co., Ltd. China 49.0 25,891 49.0 25,880 Daehan Kanggun BcN Co., Ltd. and others — — 96,479 — 115,181 Sub-total 9,498,381 7,306,816 Investments in joint ventures: Dogus Planet, Inc.(*6) Turkey 50.0 13,991 50.0 20,081 PT XL Planet Digital(*7) Indonesia — — 50.0 27,512 Finnq Co., Ltd.(*8) Korea 49.0 16,474 49.0 24,174 Celcom Planet and others — — 9,592 — 25,740 Sub-total 40,057 97,507 Total ₩ 9,538,438 ₩ 7,404,323 (*1) During the year ended December 31, 2017, the Group contributed its shares in SKY Property Mgmt. Ltd. and SK Industrial Development China Co., Ltd., both equity method investees of the Group, to SK China Company Ltd., and participated in SK China Company Ltd.’s rights issue amounting to USD 100,000,000, which resulted in Group’s acquiring 8,101,884 and 2,107,037 shares of SK China Company Ltd., respectively. This investment in associates acquired through this contribution in kind transaction was measured at fair value. (*2) Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over Korea IT Fund under the contractual agreement with other shareholders. (*3) This investment was classified as investments in associates as the Group can exercise significant influence through its right to appoint the members of board of directors even though the Group has less than 20% of equity interests. (*4) The Group acquired 40,000 shares of HappyNarae Co., Ltd. at ₩17,212 per share during the year ended December 31, 2017. (*5) During the year ended December 31, 2017, the Group subscribed to a third-party allocation of new shares of 22,033,898 by S.M. Culture & Contents Co., Ltd. at ₩65,341 million in cash. (*6) The investment is held by SK Planet Co., Ltd. (*7) PT XL Planet Digital was disposed during the year ended December 31, 2017. (*8) Investment in Finnq Co., Ltd. was classified as investment in joint venture as the Group has joint control pursuant to the agreement with the other shareholders. (2) The market price of investments in listed associates as of December 31, 2017 and 2016 are as follows: (In millions of won, except for share data) December 31, 2017 December 31, 2016 Market value Number of Fair value Market value (in won) Number of Fair value NanoEnTek, Inc. ₩ 5,950 6,960,445 41,415 5,020 6,960,445 34,941 SK hynix Inc. 76,500 146,100,000 11,176,650 44,700 146,100,000 6,530,670 S.M. Culture & Contents Co., Ltd. 2,700 22,033,898 59,492 — — — (3) The financial information of significant associates as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) As of December 31, 2017 SK hynix KEB HanaCard SK China Company Ltd. (*) Current assets ₩ 17,310,444 7,339,492 729,872 Non-current 28,108,020 220,258 1,031,647 Current liabilities 8,116,133 1,181,746 81,161 Non-current 3,481,412 4,861,842 64,717 2017 Revenue 30,109,434 1,519,607 69,420 Profit for the year 10,642,219 106,352 11,492 Other comprehensive income (loss) (422,042 ) (984 ) 27,190 Total comprehensive income 10,220,177 105,368 38,682 (*) The financial information of SK hynix Inc., KEB HanaCard Co., Ltd., and SK China Company Ltd. are consolidated financial information. (In millions of won) As of December 31, 2016 SK hynix Inc.(*) KEB HanaCard Co., Ltd.(*) Current assets ₩ 9,838,982 6,868,387 Non-current 22,377,044 239,758 Current liabilities 4,160,849 1,219,327 Non-current 4,031,647 4,476,979 2016 Revenue 17,197,975 1,413,077 Profit for the year 2,960,483 75,595 Other comprehensive income (loss) 28,844 (154 ) Total comprehensive income 2,989,327 75,441 (*) The financial information of SK hynix Inc. and KEB HanaCard Co., Ltd. are consolidated financial information. (In millions of won) SK hynix Inc. KEB HanaCard Co., Ltd. 2015 Revenue ₩ 18,797,998 1,472,830 Profit for the year 4,323,595 10,119 Other comprehensive income (loss) 40,215 (547 ) Total comprehensive income 4,363,810 9,572 (4) The condensed financial information of joint ventures as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) Dogus Planet, Inc. Finnq Co., Ltd. As of December 31, 2017 Current assets ₩ 39,656 32,232 Cash and cash equivalents 25,818 4,590 Non-current 21,159 15,610 Current liabilities 32,622 5,685 Accounts payable, other payables and provision 2,743 2,290 Non-current 212 13,862 2017 Revenue 82,791 — Depreciation and amortization (6,152 ) (1,077 ) Interest income 781 532 Interest expense (4 ) (276 ) Loss for the year (4,535 ) (15,699 ) Total comprehensive loss (4,535 ) (15,699 ) (In millions of won) Dogus Planet, Inc. PT XL Planet Digital Finnq Co., Ltd. As of December 31, 2016 Current assets ₩ 46,433 20,077 48,699 Cash and cash equivalents 45,839 14,985 48,408 Non-current 20,218 50,765 673 Current liabilities 26,417 14,513 138 Accounts payable, other payables and provision 1,971 10,306 15 Non-current 72 1,305 784 2016 Revenue 53,864 9,492 — Depreciation and amortization (5,299 ) (940 ) (12 ) Interest income 394 267 182 Interest expense (2,139 ) — — Income tax benefit — 51 — Loss for the year (22,017 ) (49,438 ) (829 ) Total comprehensive loss (22,017 ) (49,438 ) (829 ) (In millions of won) Dogus Planet, Inc. PT. Melon PT XL 2015 Revenue ₩ 38,944 17,094 5,536 Depreciation and amortization (5,318 ) (132 ) (2,746 ) Interest income 465 288 525 Income tax benefit — — 7,025 Profit (Loss) for the year (32,713 ) 1,853 (21,381 ) Total comprehensive income (loss) (32,713 ) 1,853 (21,381 ) (5) Reconciliations of financial information of significant associates to carrying amounts of investments in associates in the consolidated financial statements as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Net Ownership Net assets Cost-book Carrying Associates: SK hynix Inc.(*1,2) ₩ 33,814,467 20.1 6,997,560 1,132,440 8,130,000 KEB HanaCard Co., Ltd. 1,516,162 15.0 227,424 53,564 280,988 SK China Company Ltd.(*1) 1,612,899 27.3 439,857 86,242 526,099 (In millions of won) December 31, 2016 Net Ownership Net assets Cost-book Carrying Associates: SK hynix Inc.(*1,2) ₩ 24,016,955 20.1 4,970,267 1,161,855 6,132,122 KEB HanaCard Co., Ltd. 1,411,839 15.0 211,776 54,022 265,798 (*1) Net assets of these entities represent net assets excluding those attributable to their non-controlling (*2) The ownership interest is based on the number of shares owned by the Parent Company as divided by the total shares issued by the investee company. The Group applied the equity method using the effective ownership interest of 20.69% which is based on the number of shares owned by the Parent Company and the total issued shares outstanding less investee’s treasury shares. (6) Details of the changes in investments in associates and joint ventures accounted for using the equity method for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Share of Other hensive Impair- ment Other Ending Investments in associates SK China Company Ltd.(*1) ₩ 46,354 113,803 2,707 (36,783 ) — 400,018 526,099 Korea IT Fund(*2) 263,850 — (8,815 ) 3,371 — (1,403 ) 257,003 KEB HanaCard Co., Ltd. 265,798 — 15,494 (304 ) — — 280,988 NanoEnTek, Inc. 39,514 — (733 ) (63 ) — — 38,718 SK Industrial Development China Co., Ltd.(*1) 74,717 — 5,154 (1,092 ) — (78,779 ) — SK Technology Innovation Company 47,488 — 433 (5,410 ) — — 42,511 HappyNarae Co., Ltd. 17,236 688 3,929 20 — — 21,873 SK hynix Inc.(*2) 6,132,122 — 2,175,887 (90,349 ) — (87,660 ) 8,130,000 SK MENA Investment B.V. 15,451 — 131 (1,729 ) — — 13,853 SKY Property Mgmt. Ltd.(*1) 263,225 — 2,362 1,141 — (266,728 ) — S.M. Culture & Contents Co., Ltd. — 65,341 (375 ) — — — 64,966 Xian Tianlong Science and Technology Co., Ltd. 25,880 — 11 — — — 25,891 Daehan Kanggun BcN Co., Ltd. and others(*2) 115,181 (1,306 ) (6,924 ) (2,723 ) (1,311 ) (6,438 ) 96,479 Sub-total 7,306,816 178,526 2,189,261 (133,921 ) (1,311 ) (40,990 ) 9,498,381 Investments in joint ventures Dogus Planet, Inc. 20,081 2,162 (2,267 ) (5,985 ) — — 13,991 PT XL Planet Digital(*3) 27,512 (18,864 ) (8,648 ) — — — — Finnq Co., Ltd 24,174 — (7,691 ) (9 ) — — 16,474 Celcom Planet and others 25,740 — (6,228 ) (833 ) — (9,087 ) 9,592 Sub-total 97,507 (16,702 ) (24,834 ) (6,827 ) — (9,087 ) 40,057 Total ₩ 7,404,323 161,824 2,164,427 (140,748 ) (1,311 ) (50,077 ) 9,538,438 (*1) Other increase (decrease) is due to merger of SK China Company Ltd., SK Industrial Development China Co., Ltd. and SKY Property Mgmt. Ltd. (*2) Dividends received from the associates are deducted from the carrying amount during the year ended December 31, 2017. (*3) During the year ended December 31, 2017, the Group disposed the shares of PT XL Planet Digital and recognized loss on disposal of ₩27,900 million. (In millions of won) 2016 Beginning Acquisition Share of Other Impair- Other Ending Investments in associates SK China Company Ltd. ₩ 43,814 — 2,257 283 — — 46,354 Korea IT Fund(*1) 260,456 — 14,864 (5,388 ) — (6,082 ) 263,850 KEB HanaCard Co., Ltd. 254,177 — 11,658 (37 ) — — 265,798 Candle Media Co., Ltd. 20,144 (18,860 ) (673 ) (611 ) — — — NanoEnTek, Inc. 45,008 — (3,950 ) (1,544 ) — — 39,514 SK Industrial Development China Co., Ltd. 86,324 — (6,298 ) (5,309 ) — — 74,717 SK Technology Innovation Company 45,891 — 162 1,435 — — 47,488 HappyNarae Co., Ltd. 17,095 — 240 (99 ) — — 17,236 SK hynix Inc.(*1) 5,624,493 — 572,086 8,593 — (73,050 ) 6,132,122 SK MENA Investment B.V. 14,929 — 63 459 — — 15,451 SKY Property Mgmt. Ltd. 251,166 — 16,066 (4,007 ) — — 263,225 Xian Tianlong Science and Technology Co., Ltd. 25,767 — 113 — — — 25,880 Daehan Kanggun BcN Co., Ltd. and others 161,058 (26,798 ) (13,179 ) 754 (6,972 ) 318 115,181 Sub-total 6,850,322 (45,658 ) 593,409 (5,471 ) (6,972 ) (78,814 ) 7,306,816 Investments in joint ventures Dogus Planet, Inc. 15,118 18,722 (11,008 ) (2,751 ) — — 20,081 PT. Melon Indonesia(*2) 4,339 (3,488 ) 918 (1,769 ) — — — PT XL Planet Digital 23,108 29,123 (24,719 ) — — — 27,512 Finnq Co., Ltd — 24,580 (406 ) — — — 24,174 Celcom Planet and others 3,406 43,769 (21,435 ) — — — 25,740 Sub-total 45,971 112,706 (56,650 ) (4,520 ) — — 97,507 Total ₩ 6,896,293 67,048 536,759 (9,991 ) (6,972 ) (78,814 ) 7,404,323 (*1) Dividends received from the associate are deducted from the carrying amount during the year ended December 31, 2016. (*2) During the year ended December 31, 2016, the Group disposed of all shares of PT. Melon Indonesia and recognized gain on disposal of ₩11,634 million. (7) The Group discontinued the application of equity method to the following investees due to their carrying amounts being reduced to zero. The details of cumulative unrecognized equity method losses as of December 31, 2017 are as follows: (In millions of won) Unrecognized loss (profit) Unrecognized change in equity Year ended Cumulative Year ended Cumulative Wave City Development Co., Ltd. ₩ (1,190 ) 2,100 — — Daehan Kanggun BcN Co., Ltd. and others (5,475 ) 5,316 — 365 ₩ (6,665 ) 7,416 — 365 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property and Equipment | 13. Property and Equipment (1) Property and equipment as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Acquisition cost Accumulated Accumulated Carrying Land ₩ 862,861 — — 862,861 Buildings 1,638,749 (756,099 ) — 882,650 Structures 866,909 (488,334 ) — 378,575 Machinery 30,343,739 (23,262,762 ) (1,179 ) 7,079,798 Other 1,722,441 (1,188,893 ) (2,491 ) 531,057 Construction in progress 409,941 — — 409,941 ₩ 35,844,640 (25,696,088 ) (3,670 ) 10,144,882 (In millions of won) December 31, 2016 Acquisition cost Accumulated Accumulated Carrying Land ₩ 835,909 — — 835,909 Buildings 1,604,863 (704,891 ) — 899,972 Structures 812,010 (453,055 ) — 358,955 Machinery 29,705,088 (22,667,047 ) (1,991 ) 7,036,050 Other 1,701,794 (1,138,303 ) (457 ) 563,034 Construction in progress 680,292 — — 680,292 ₩ 35,339,956 (24,963,296 ) (2,448 ) 10,374,212 (2) Changes in property and equipment for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Disposal Transfer(*) Depreci- Impair- Business Other Ending Land ₩ 835,909 13,093 (4,449 ) 18,308 — — — — 862,861 Buildings 899,972 5,098 (477 ) 29,614 (51,557 ) — — — 882,650 Structures 358,955 46,614 (74 ) 8,386 (35,306 ) — — — 378,575 Machinery 7,036,050 656,731 (41,692 ) 1,644,045 (2,214,524 ) (778 ) — (34 ) 7,079,798 Other 563,034 720,431 (9,252 ) (597,404 ) (143,261 ) (2,234 ) 315 (572 ) 531,057 Construction in progress 680,292 1,317,389 (4,172 ) (1,583,560 ) — — — (8 ) 409,941 ₩ 10,374,212 2,759,356 (60,116 ) (480,611 ) (2,444,648 ) (3,012 ) 315 (614 ) 10,144,882 (*) Includes reclassification to intangible assets. (In millions of won) 2016 Beginning balance Acquisition Disposal Transfer(*) Depreciation Impairment Ending Land ₩ 812,947 2,464 (3,514 ) 24,012 — — 835,909 Buildings 911,129 4,637 (9,176 ) 43,910 (50,528 ) — 899,972 Structures 344,221 33,802 (33 ) 15,145 (34,180 ) — 358,955 Machinery 7,342,009 660,629 (45,672 ) 1,234,737 (2,152,725 ) (2,928 ) 7,036,050 Other 473,438 807,047 (6,052 ) (568,644 ) (142,700 ) (55 ) 563,034 Construction in progress 487,512 1,154,424 (9,710 ) (951,934 ) — — 680,292 ₩ 10,371,256 2,663,003 (74,157 ) (202,774 ) (2,380,133 ) (2,983 ) 10,374,212 (*) Includes reclassification to intangible assets. |
Investment Property
Investment Property | 12 Months Ended |
Dec. 31, 2017 | |
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Investment Property | 14. Investment Property (1) There are no investment property as of December 31, 2017 and 2016. (2) Changes in investment properties for the year ended December 31, 2016 are as follows: (In millions of won) 2016 Beginning balance Reclassification(*) Depreciation Ending Land ₩ 10,634 (10,634 ) — — Buildings 4,437 (4,334 ) (103 ) — ₩ 15,071 (14,968 ) (103 ) — (*) Includes reclassification to property and equipment. (3) Income and expenses from investment property for the years ended December 31, 2016 and 2015 are as follows: (In millions of won) 2016 2015 Rent revenue ₩ 386 850 Operating expense (114 ) (240 ) |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
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Goodwill | 15. Goodwill (1) Goodwill as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Goodwill related to acquisition of Shinsegi Telecom, Inc. ₩ 1,306,236 1,306,236 Goodwill related to acquisition of SK Broadband Co., Ltd. 358,443 358,443 Other goodwill 250,338 267,773 ₩ 1,915,017 1,932,452 Goodwill is allocated to the following CGUs for the purpose of impairment testing. • goodwill related to Shinsegi Telecom, Inc.(*1): cellular services; • goodwill related to SK Broadband Co., Ltd.(*2): fixed-line telecommunication services; and • other goodwill: e-commerce (*1) Goodwill related to acquisition of Shinsegi Telecom, Inc. The recoverable amount of the CGU is based on its value in use calculated by applying the annual discount rate of 6.6% to the estimated future cash flows based on financial budgets for the next five years. An annual growth rate of 0.4% was applied for the cash flows expected to be incurred after five years and is not expected to exceed the Group’s long-term wireless telecommunication business growth rate. Management of the Group does not expect the total carrying amount of the CGU will exceed the total recoverable amount due to reasonably possible changes from the major assumptions used to estimate the recoverable amount. (*2) Goodwill related to acquisition of SK Broadband Co., Ltd. The recoverable amount of the CGU is based on its value in use calculated by applying the annual discount rate of 5.1% to the estimated future cash flows based on financial budgets for the next five years. An annual growth rate of 1.0% was applied for the cash flows expected to be incurred after five years and is not expected to exceed the Group’s long-term wireless telecommunication business growth rate. Management of the Group does not expect the total carrying amount of the CGU will exceed the total recoverable amount due to reasonably possible changes from the major assumptions used to estimate the recoverable amount. (2) Details of the changes in goodwill for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 1,932,452 1,908,590 Acquisition 35,221 19,974 Impairment loss (33,441 ) — Other (19,215 ) 3,888 ₩ 1,915,017 1,932,452 Accumulated impairment losses as of December 31, 2017 and 2016 are ₩50,710 million and ₩17,269 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible Assets | 16. Intangible Assets (1) Intangible assets as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Acquisition Accumulated Accumulated Carrying Frequency usage rights ₩ 4,843,955 (2,667,015 ) — 2,176,940 Land usage rights 65,841 (50,091 ) — 15,750 Industrial rights 166,082 (54,735 ) — 111,347 Development costs 140,460 (134,828 ) (1,529 ) 4,103 Facility usage rights 153,438 (116,987 ) — 36,451 Customer relations 20,796 (16,761 ) — 4,035 Club memberships(*1) 108,382 — (34,768 ) 73,614 Other(*2) 3,911,749 (2,733,485 ) (13,539 ) 1,164,725 ₩ 9,410,703 (5,773,902 ) (49,836 ) 3,586,965 (In millions of won) December 31, 2016 Acquisition Accumulated Accumulated Carrying Frequency usage rights ₩ 4,843,955 (2,263,127 ) — 2,580,828 Land usage rights 65,148 (44,314 ) — 20,834 Industrial rights 160,897 (39,697 ) — 121,200 Development costs 141,727 (136,446 ) (410 ) 4,871 Facility usage rights 151,906 (110,118 ) — 41,788 Customer relations 19,742 (13,090 ) — 6,652 Club memberships(*1) 113,161 — (39,122 ) 74,039 Other(*2) 3,315,921 (2,386,992 ) (2,787 ) 926,142 ₩ 8,812,457 (4,993,784 ) (42,319 ) 3,776,354 (*1) Club memberships are classified as intangible assets with indefinite useful life and are not amortized. (*2) Other intangible assets primarily consist of computer software and usage rights to a research facility which the Group built and donated, and the Group is given rights-to-use (2) Details of the changes in intangible assets for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Disposal Transfer (*1) Amortization Impair- ment (*2) Business Others Ending Frequency usage rights ₩ 2,580,828 — — — (403,888 ) — — — 2,176,940 Land usage rights 20,834 3,689 (972 ) 200 (8,001 ) — — — 15,750 Industrial rights 121,200 2,677 (28 ) (5,635 ) (6,870 ) — 4 (1 ) 111,347 Development costs 4,871 3,813 (9 ) (793 ) (2,660 ) (1,119 ) — — 4,103 Facility usage rights 41,788 2,805 (36 ) 129 (8,235 ) — — — 36,451 Customer relations 6,652 1,054 — — (3,671 ) — — — 4,035 Club memberships 74,039 5,023 (3,452 ) 122 — (769 ) — (1,349 ) 73,614 Other 926,142 127,396 (19,698 ) 503,277 (369,546 ) (16,605 ) 14,118 (359 ) 1,164,725 ₩ 3,776,354 146,457 (24,195 ) 497,300 (802,871 ) (18,493 ) 14,122 (1,709 ) 3,586,965 (*1) Includes reclassification from advance payments and property and equipment. (*2) The Group recognized the difference between recoverable amount and the carrying amount of club memberships amounting to ₩18,493 million as impairment loss for the year ended December 31, 2017. (*3) Includes intangible assets acquired as a result of IRIVER LIMITED’s purchase and merge of S.M. LIFE DESIGN COMPANY INC. and SM mobile communications Co., Ltd. during the year ended December 31, 2017. (In millions of won) 2016 Beginning Acquisition Disposal Transfer Amortiza Impair- ment(*3) Business Ending Frequency usage rights(*1) ₩ 1,103,517 1,810,076 — — (332,765 ) — — 2,580,828 Land usage rights 26,576 5,338 (1,921 ) — (9,159 ) — — 20,834 Industrial rights 116,542 6,226 (148 ) 5,004 (6,424 ) — — 121,200 Development costs 7,472 1,404 — 338 (3,933 ) (410 ) — 4,871 Facility usage rights 48,019 2,181 (50 ) 231 (8,593 ) — — 41,788 Customer relations 7,175 499 — — (4,051 ) — 3,029 6,652 Club memberships 91,507 7,983 (7,624 ) — — (17,827 ) — 74,039 Other 903,976 141,045 (20,306 ) 228,110 (323,397 ) (3,286 ) — 926,142 ₩ 2,304,784 1,974,752 (30,049 ) 233,683 (688,322 ) (21,523 ) 3,029 3,776,354 (*1) During the year ended December 31, 2016, the Parent Company acquired the frequency right for bandwidth blocs in the 2.6 GHz band for ₩1,330,100 million at the spectrum auction held by the Ministry of Science, ICT and Future Planning (MSIP) of Korea and made the initial payment in accordance with the terms of the agreement in August 2016. The remaining consideration will be paid on an annual installment basis for 10 years from August 2016. In addition, the Parent Company extended frequency usage rights for 2.1 GHz band for ₩568,500 million with the initial payment made to MSIP during the year ended December 31, 2016. The remaining consideration will be paid on an annual installment basis for 5 years from December 2016. (*2) Includes reclassification from advance payments and property and equipment. (*3) The Group recognized the difference between recoverable amount and the carrying amount of intangible assets, amounting to ₩21,523 million as impairment loss for the year ended December 31, 2016. (3) Research and development expenditures recognized as expense for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Research and development costs expensed as incurred ₩ 395,276 344,787 315,790 (4) The carrying amount and residual useful lives of frequency usage rights as of December 31, 2017 are as follows, all of which are amortized on a straight-line basis: (In millions of won) Amount Description Commencement Completion of 800MHz license ₩ 141,904 Frequency usage rights relating to CDMA and LTE service Jul. 2011 Jun. 2021 1.8GHz license 502,480 Frequency usage rights relating to LTE service Sept. 2013 Dec. 2021 WiBro license 2,957 WiBro service Mar. 2012 Mar. 2019 2.6GHz license 1,092,770 Frequency usage rights relating to LTE service Sept. 2016 Dec. 2026 2.1GHz license 436,829 Frequency usage rights relating to W-CDMA Dec. 2016 Dec. 2021 ₩ 2,176,940 |
Borrowings and Debentures
Borrowings and Debentures | 12 Months Ended |
Dec. 31, 2017 | |
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Borrowings and Debentures | 17. Borrowings and Debentures (1) Short-term borrowings as of December 31, 2017 and 2016 are as follows: (In millions of won) Lender Annual December 31, December 31, 2016 Short-term borrowings Shinhan Bank 2.85 ₩ 30,000 — Woori Bank 2.88 — 2,614 Commercial paper KEB Hana Bank 1.67 50,000 — Bank overdraft KEB Hana Bank 3.17 30,000 — Shinhan Bank 3.38 20,000 — ₩ 130,000 2,614 (2) Long-term borrowings as of December 31, 2017 and 2016 are as follows: (In millions of won ) Lender Annual interest Maturity December 31, 2017 December 31, 2016 Korea Development Bank(*1) 3.20 Mar. 31, 2020 ₩ 30,000 — KEB Hana Bank 3.18 Feb. 28, 2019 40,000 — Kookmin Bank 1.29 Mar. 15, 2017 — 500 Kookmin Bank 1.95 Mar. 15, 2018 717 3,583 Korea Development Bank(*2) 1.99 Jul. 30, 2019 22,750 35,750 Korea Development Bank(*2) 1.99 Jul. 30, 2019 5,833 9,167 Korea Development Bank(*2) 2.27 Dec. 20, 2021 49,000 49,000 Korea Development Bank(*2) 2.37 Dec. 21, 2022 50,000 — Export Kreditnamnden(*3) 1.70 Apr. 29, 2022 55,471 76,493 (USD 51,775 ) (USD 63,296 ) Sub-total 253,771 174,493 Less present value discount (954 ) (1,586 ) 252,817 172,907 Less current portion (41,331 ) (33,191 ) ₩ 211,486 139,716 (*1) SK Planet Co., Ltd., one of the subsidiaries of the Parent Company entered into a floating-to-fixed (*2) SK Broadband Co., Ltd., one of the subsidiaries of the Parent Company entered into a floating-to-fixed (*3) The long-term borrowings are to be repaid by installments on an annual basis from 2014 to 2022. (3) Debentures as of December 31, 2017 and 2016 are as follows: (In millions of won, thousands of U.S. dollars and thousands of other currencies) Purpose Maturity Annual interest December 31, 2017 December 31, Unsecured corporate bonds Other fund 2018 5.00 ₩ 200,000 200,000 Unsecured corporate bonds Operating fund 2021 4.22 190,000 190,000 Unsecured corporate bonds Operating and refinancing fund 2019 3.24 170,000 170,000 Unsecured corporate bonds 2022 3.30 140,000 140,000 Unsecured corporate bonds 2032 3.45 90,000 90,000 Unsecured corporate bonds Operating fund 2023 3.03 230,000 230,000 Unsecured corporate bonds 2033 3.22 130,000 130,000 Unsecured corporate bonds 2019 3.30 50,000 50,000 Unsecured corporate bonds 2024 3.64 150,000 150,000 Unsecured corporate bonds(*1) 2029 4.72 60,278 59,600 Unsecured corporate bonds Refinancing fund 2019 2.53 160,000 160,000 Unsecured corporate bonds 2021 2.66 150,000 150,000 Unsecured corporate bonds 2024 2.82 190,000 190,000 Unsecured corporate bonds Operating and refinancing fund 2022 2.40 100,000 100,000 Unsecured corporate bonds refinancing fund 2025 2.49 150,000 150,000 Unsecured corporate bonds 2030 2.61 50,000 50,000 Unsecured corporate bonds Operating fund 2018 1.89 90,000 90,000 Unsecured corporate bonds 2025 2.66 70,000 70,000 Unsecured corporate bonds 2030 2.82 90,000 90,000 Unsecured corporate bonds Operating and refinancing fund 2018 2.07 80,000 80,000 Unsecured corporate bonds 2025 2.55 100,000 100,000 Unsecured corporate bonds 2035 2.75 70,000 70,000 Unsecured corporate bonds Operating fund 2019 1.65 70,000 70,000 Unsecured corporate bonds 2021 1.80 100,000 100,000 Unsecured corporate bonds 2026 2.08 90,000 90,000 Unsecured corporate bonds 2036 2.24 80,000 80,000 Unsecured corporate bonds 2019 1.62 50,000 50,000 Unsecured corporate bonds 2021 1.71 50,000 50,000 Unsecured corporate bonds 2026 1.97 120,000 120,000 Unsecured corporate bonds 2031 2.17 50,000 50,000 Unsecured corporate bonds Refinancing fund 2020 1.93 60,000 — Unsecured corporate bonds 2022 2.17 120,000 — Unsecured corporate bonds 2027 2.55 100,000 — Unsecured corporate bonds Operating and refinancing fund 2032 2.65 90,000 — Unsecured corporate bonds Operating fund 2020 2.39 100,000 — Unsecured corporate bonds Operating and refinancing fund 2022 2.63 80,000 — Unsecured corporate bonds Refinancing fund 2027 2.84 100,000 — Unsecured corporate bonds(*2) Operating fund 2017 4.28 — 100,000 Unsecured corporate bonds(*2) 2017 3.27 — 120,000 Unsecured corporate bonds(*2) 2019 3.49 210,000 210,000 Unsecured corporate bonds(*2) 2019 2.76 130,000 130,000 Unsecured corporate bonds(*2) 2018 2.23 50,000 50,000 Unsecured corporate bonds(*2) 2020 2.49 160,000 160,000 Unsecured corporate bonds(*2) 2020 2.43 140,000 140,000 Unsecured corporate bonds(*2) 2020 2.18 130,000 130,000 Unsecured corporate bonds(*2) 2019 1.58 50,000 50,000 Unsecured corporate bonds(*2) Operating and refinancing fund 2021 1.77 120,000 120,000 Unsecured corporate bonds(*2) Operating fund 2022 2.26 150,000 — Unsecured corporate bonds(*2) Refinancing fund 2022 2.34 30,000 — Unsecured corporate bonds(*2) Operating and refinancing fund 2022 2.70 140,000 — Unsecured corporate bonds(*3) Operating fund 2017 3.48 — 20,000 Convertible bonds(*4) 2019 1.00 5,558 — Unsecured global bonds 2027 6.63 428,560 483,400 (USD 400,000 ) (USD 400,000 ) Unsecured private Swiss bonds 2017 1.75 — 354,399 bonds (CHF 300,000 ) Unsecured global bonds 2018 2.13 749,980 845,950 (USD 700,000 ) (USD 700,000 ) Unsecured corporate Australian bonds 2017 4.75 — 261,615 (AUD 300,000 ) Floating rate notes(*5) 2020 3M Libor + 0.88 321,420 362,550 (USD 300,000) (USD 300,000 ) Foreign global bonds(*2) 2018 2.88 321,420 362,550 (USD 300,000 ) (USD 300,000 ) Sub-total 7,107,216 7,220,064 Less discounts on bonds (21,029 ) (25,858 ) 7,086,187 7,194,206 Less current portion of bonds (1,489,617 ) (855,276 ) ₩ 5,596,570 6,338,930 (*1) The Group eliminated a measurement inconsistency of accounting profit or loss between the bonds and related derivatives by designating the structured bonds as financial liabilities at fair value through profit or loss. The carrying amount of financial liabilities designated at fair value through profit or loss exceeds the principal amount required to pay at maturity by ₩10,278 million as of December 31, 2017. (*2) Unsecured corporate bonds were issued by SK Broadband Co., Ltd. (*3) Unsecured corporate bonds were issued by PS&Marketing Corporation. (*4) During the year ended December 31, 2017, the Parent Company sold the convertible bonds issued by IRIVER LIMITED to third parties. (*5) As of December 31, 2017, 3M LIBOR rate is 1.69%. |
Long-term Payables - Other
Long-term Payables - Other | 12 Months Ended |
Dec. 31, 2017 | |
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Long-term Payables - Other | 18. Long-term Payables — Other (1) Long-term payables — other as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Payables related to acquisition of frequency usage rights ₩ 1,328,630 1,602,943 Other(*) 18,133 21,647 ₩ 1,346,763 1,624,590 (*) Other includes other long-term employee compensation liabilities. (2) As of December 31, 2017 and 2016, details of long-term payables — other which consist of payables related to the acquisition of frequency usage rights are as follows (See Note 16): (In millions of won) December 31, December 31, Long-term payables — other ₩ 1,710,255 2,013,122 Present value discount on long-term payables — other (79,874 ) (108,406 ) 1,630,381 1,904,716 Less current portion of long-term payables — other (301,751 ) (301,773 ) Carrying amount at December 31 ₩ 1,328,630 1,602,943 (3) The repayment schedule of the principal amount of long-term payables — other related to acquisition of frequency usage rights as of December 31, 2017 is as follows: (In millions of won) Amount Less than 1 year ₩ 302,867 1~3 years 605,734 3~5 years 402,624 More than 5 years 399,030 ₩ 1,710,255 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
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Provisions | 19. Provisions (1) Changes in provisions for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) For the year ended December 31, 2017 As of December 31, 2017 Beginning Increase Utilization Reversal Other Ending Current Non-current Provision for installment of handset subsidy(*1) ₩ 24,710 2 (8,898 ) (11,940 ) — 3,874 3,874 — Provision for restoration(*2) 64,679 12,066 (2,517 ) (1,006 ) 45 73,267 40,598 32,669 Emission allowance(*3) 2,788 4,663 (518 ) (2,283 ) — 4,650 4,650 — Other provisions 5,740 952 (3,757 ) — — 2,935 2,935 — ₩ 97,917 17,683 (15,690 ) (15,229 ) 45 84,726 52,057 32,669 (In millions of won) For the year ended December 31, 2016 As of December 31, 2016 Beginning Increase Utilization Reversal Other Ending Current Non-current Provision for installment of handset subsidy(*1) ₩ 5,670 37,530 (18,490 ) — — 24,710 19,939 4,771 Provision for restoration(*2) 59,954 6,677 (1,082 ) (913 ) 43 64,679 37,760 26,919 Emission allowance(*3) 1,477 1,480 (169 ) — — 2,788 2,788 — Other provisions 3,104 3,237 (601 ) — — 5,740 5,740 — ₩ 70,205 48,924 (20,342 ) (913 ) 43 97,917 66,227 31,690 (*1) The Group recognizes a provision for handset subsidies given to the subscribers who purchase handsets on an installment basis. The amount recognized as a provision for handset subsidies is the Group’s best estimate of the expenditure required to settle the current obligations to the relevant subscribers at the end of the reporting period, which is calculated as of the present values of estimated handset subsidies to be granted over the relevant service periods, taking into account the customer retention rate for the relevant subscribers. The discount rate used in calculating the present values is based on AAA-rated two-year (*2) In the course of the Group’s activities, base station and other assets are installed on leased premises which are expected to have costs associated with restoring the premises to their original conditions where these assets are situated upon ceasing their use on those premises. The associated cash outflows, which are long-term in nature, are generally expected to occur at the dates of the termination of lease contracts to which the assets relate. These restoration costs are calculated on the basis of the identified costs for the current financial year, extrapolated into the future based on management’s best estimates of future trends in prices, inflation, and other factors, and are discounted to present value at a risk-adjusted rate specifically applicable to the liability. Forecasts of estimated future cash outflows are revised in light of future changes in business conditions or technological requirements. The Group records these restoration costs as property and equipment and subsequently expenses them using the straight-line method over the asset’s useful life, and records the accretion of the liability as a charge to finance costs. (*3) The Group recognizes estimated future payment for the number of emission certificates required to settle the Group’s obligation exceeding the actual number of certificates on hand as emission allowances according to the Act on Allocation and Trading of Greenhouse Gas Emission Permits. (2) The followings are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period. Key assumptions Provision for handset subsidy estimation based on historical service retention period data Provision for restoration estimation based on cost of demolition and inflation with an assumption of demolishing the relevant assets after six years |
Lease
Lease | 12 Months Ended |
Dec. 31, 2017 | |
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Lease | 20. Lease In 2012, the Group disposed a portion of its property and equipment and investment property, and entered into lease agreements with respect to those assets. These sale and leaseback transactions were accounted for as operating leases. The Group entered into operating lease agreements and sublease agreements in relation to rented office space and the expected future lease payments and lease revenues as of December 31, 2017 are as follows: (In millions of won) Minimum Revenues Less than 1 year ₩ 49,289 1,926 1~5 years 101,872 916 ₩ 151,161 2,842 |
Defined Benefit Liabilities(Ass
Defined Benefit Liabilities(Assets) | 12 Months Ended |
Dec. 31, 2017 | |
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Defined Benefit Liabilities(Assets) | 21. Defined Benefit Liabilities(Assets) (1) Details of defined benefit liabilities(assets) as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Present value of defined benefit obligations ₩ 679,625 595,667 Fair value of plan assets (663,617 ) (555,175 ) Defined benefit assets(*) (45,952 ) (30,247 ) Defined benefit liabilities 61,960 70,739 (*) Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit obligations of Group entities with defined benefit assets of other Group entities, defined benefit assets of Group entities have been separately presented from defined benefit liabilities. (2) Principal actuarial assumptions as of December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Discount rate for defined benefit obligations 2.58%~4.03% 1.90%~2.96% Expected rate of salary increase 3.08%~5.93% 2.49%~6.09% Discount rate for defined benefit obligation is determined based on market yields of high-quality corporate bonds with similar maturities for estimated payment term of defined benefit obligation. Expected rate of salary increase is determined based on the Group’s historical promotion index, inflation rate and salary increase ratio. (3) Changes in defined benefit obligations for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 595,667 525,269 Current service cost 125,526 114,528 Interest cost 15,991 13,441 Remeasurement - Demographic assumption (287 ) 677 - Financial assumption (20,731 ) (2,462 ) - Adjustment based on experience 11,561 6,229 Benefit paid (60,883 ) (55,350 ) Others 12,781 (6,665 ) Ending balance ₩ 679,625 595,667 (4) Changes in plan assets for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 555,175 426,413 Interest income 13,821 9,826 Remeasurement (5,540 ) (6,320 ) Contributions 155,834 159,687 Benefit paid (60,006 ) (34,247 ) Others 4,333 (184 ) Ending balance ₩ 663,617 555,175 The Group expects to make a contribution of ₩146,086 million to the defined benefit plans in 2018. (5) Total amount of expenses recognized in profit and loss (included in labor in the consolidated statement of income) and capitalized into construction-in-progress (In millions of won) 2017 2016 2015 Current service cost ₩ 125,526 114,528 106,764 Net interest cost 2,170 3,615 3,257 ₩127,696 118,143 110,021 (6) Details of plan assets as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Equity instruments ₩ 15,567 13,640 Debt instruments 134,710 95,359 Short-term financial instruments, etc. 513,340 446,176 ₩ 663,617 555,175 (7) As of December 31, 2017, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows: (In millions of won) 0.5% Increase 0.5% Decrease Discount rate ₩ (24,702 ) 26,808 Expected salary increase rate 26,988 (25,138 ) The sensitivity analysis does not consider dispersion of all cash flows that are expected from the plan and provides approximate values of sensitivity for the assumptions used. A weighted average duration of defined benefit obligations as of December 31, 2017 is 8.17 years. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Derivative Instruments | 22. Derivative Instruments (1) Currency and interest rate swap contracts under cash flow hedge accounting as of December 31, 2017 are as follows: (In millions of won and thousands of foreign currencies) Borrowing Hedging Instrument(Hedged item) Hedged risk Financial Duration of Jul. 20, 2007 Fixed-to-fixed Foreign currency risk Morgan Stanley and four other banks Jul. 20, 2007 ~ Nov. 1, 2012 Fixed-to-fixed Foreign currency risk Standard Chartered and eight other banks Nov. 1, 2012~ May. 1, 2018 Mar. 7, 2013 Floating-to-fixed Foreign currency risk and interest rate risk DBS bank Mar. 7, 2013 ~ Mar. 7, 2020 Oct. 29, 2013 Fixed-to-fixed Foreign currency risk Korea Development Bank and others Oct. 29, 2013 ~ Oct. 26, 2018 Dec. 16, 2013 Fixed-to-fixed Foreign currency risk Deutsche bank Dec. 16, 2013 ~ Apr. 29, 2022 Dec. 20, 2016 Floating-to-fixed Interest rate risk Korea Development Bank Dec. 20, 2016~ Dec. 20, 2021 Jan. 30, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Nov. 10, 2016~ Jul. 30, 2019 Mar. 31, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Mar. 31, 2017- Mar. 31, 2020 Dec. 21, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Dec. 5, 2017- Dec. 21, 2022 (2) As of December 31, 2017, details of fair values of the above derivatives recorded in assets or liabilities are as follows: (In millions of won and thousands of foreign currencies) Hedging instrument(Hedged item) Cash flow Held for Embedded Fair value Non-current Redeemable convertible preferred shares issued by Bluehole INC. ₩ — — 222,257 222,257 Structured bond(face value of KRW 50,000) — 9,054 — 9,054 Fixed-to-fixed 21,554 — — 21,554 Floating-to-fixed 307 — — 307 Floating-to-fixed 43 — — 43 Floating-to-fixed (2 ) — — (2 ) Total assets ₩ 253,213 Current liabilities: Fixed-to-fixed ₩ (27,791 ) — — (27,791 ) Fixed-to-fixed (615 ) — — (615 ) Non-current Floating-to-fixed (7,613 ) — — (7,613 ) Fixed-to-fixed (3,106 ) — — (3,106 ) Floating-to-fixed (345 ) — — (345 ) Total liabilities ₩ (39,470 ) |
Share Capital and Capital Surpl
Share Capital and Capital Surplus (Deficit) and Others | 12 Months Ended |
Dec. 31, 2017 | |
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Share Capital and Capital Surplus (Deficit) and Others | 23. Share Capital and Capital Surplus (deficit) and Others The Parent Company’s outstanding share capital consists entirely of common shares with a par value of ₩500. The number of authorized, issued and outstanding common shares and the details of capital surplus (deficit) and others as of December 31, 2017 and 2016 are as follows: (In millions of won, except for share data) December 31, 2017 December 31, 2016 Number of authorized shares 220,000,000 220,000,000 Number of issued shares(*1) 80,745,711 80,745,711 Share capital Common share ₩ 44,639 44,639 Capital surplus (deficit) and others: Paid-in 2,915,887 2,915,887 Treasury shares(Note 24) (2,260,626 ) (2,260,626 ) Share option(Note 26) 414 — Others(*2) (857,912 ) (854,000 ) ₩ (202,237 ) (198,739 ) (*1) In 2002 and 2003, the Parent Company retired treasury shares with reduction of retained earnings before appropriation. As a result, the Parent Company’s outstanding shares have decreased without change in share capital. (*2) Others primarily consist of the excess of the consideration paid by the Group over the carrying values of net assets acquired from entities under common control. There were no changes in share capital during the years ended December 31, 2017 and 2016 and details of shares outstanding as of December 31, 2017 and 2016 are as follows: (In shares) 2017 2016 Issued shares Treasury Outstanding Issued shares Treasury Outstanding Shares outstanding 80,745,711 10,136,551 70,609,160 80,745,711 10,136,551 70,609,160 |
Treasury Shares
Treasury Shares | 12 Months Ended |
Dec. 31, 2017 | |
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Treasury Shares | 24. Treasury Shares The Parent Company acquired treasury shares to provide share dividends, merge with Shinsegi Telecom, Inc. and SK IMT Co, Ltd., increase shareholder value and stabilize its share prices. Treasury shares as of December 31, 2017 and 2016 are as follows: (In millions of won, shares) December 31, 2017 December 31, 2016 Number of shares 10,136,551 10,136,551 Acquisition cost ₩ 2,260,626 2,260,626 |
Hybrid Bonds
Hybrid Bonds | 12 Months Ended |
Dec. 31, 2017 | |
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Hybrid Bonds | 25. Hybrid Bonds Hybrid bonds classified as equity as of December 31, 2017 are as follows: (In millions of won) Type Issuance date Maturity(*1) Annual Amount Private hybrid bonds Unsecured subordinated bearer bond June 7, 2013 June 7, 2073 4.21 ₩ 400,000 Issuance costs (1,482 ) ₩ 398,518 Hybrid bonds issued by the Parent Company are classified as equity as there is no contractual obligation for delivery of financial assets to the bond holders. These are subordinated bonds which rank before common shares in the event of a liquidation or reorganization of the Parent Company. (*1) The Parent Company has a right to extend the maturity under the same terms at issuance without any notice or announcement. The Parent Company also has the right to defer interest payment at its sole discretion. (*2) Annual interest rate is calculated as yield rate of 5 year national bonds plus premium. According to the step-up |
Share option
Share option | 12 Months Ended |
Dec. 31, 2017 | |
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Share option | 26. Share option (1) At the shareholders’ meeting held on March 24, 2017, the Parent Company established a share option program that entitles key management personnel the option to purchase common shares of the Parent Company. The terms and conditions related to the grants of the share options under the share option program are as follows: Series 1-1 1-2 1-3 Grant date March 24, 2017 Types of shares to be issued 66,504 of registered common shares Grant method Reissue of treasury shares Number of shares (in shares) 22,168 22,168 22,168 Exercise price (in won) 246,750 266,490 287,810 Exercise period Mar. 25, 2019 ~ Mar. 25, 2020 ~ Mar. 25, 2021 ~ Vesting conditions 2 years’ service 3 years’ service 4 years’ service (2) Share compensation expense recognized during the year ended December 31, 2017 and the remaining share compensation expense to be recognized in subsequent periods are as follows: (In millions of won) Share During the year ended December 31, 2017 ₩ 414 In subsequent periods 977 ₩ 1,391 (3) The Group used binomial option pricing model in the measurement of the fair value of the share options at grant date and the inputs used in the model are as follows: 1-1 1-2 1-3 Risk-free interest rate 1.86 % 1.95 % 2.07 % Estimated option’s life 5 years 6 years 7 years Share price (Closing price on the preceding day in won) 262,500 262,500 262,500 Expected volatility 13.38 % 13.38 % 13.38 % Expected dividends 3.80 % 3.80 % 3.80 % Exercise price (in won) 246,750 266,490 287,810 Per share fair value of the option (in won) 27,015 20,240 15,480 |
Retained Earnings
Retained Earnings | 12 Months Ended |
Dec. 31, 2017 | |
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Retained Earnings | 27. Retained Earnings (1) Retained earnings as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Appropriated: Legal reserve ₩ 22,320 22,320 Reserve for research & manpower development — 60,001 Reserve for business expansion 10,171,138 9,871,138 Reserve for technology development 3,071,300 2,826,300 13,264,758 12,779,759 Unappropriated 4,571,188 3,173,405 ₩ 17,835,946 15,953,164 (2) Legal reserve The Korean Commercial Act requires the Parent Company to appropriate as a legal reserve at least 10% of cash dividends paid for each accounting period until the reserve equals 50% of outstanding share capital. The legal reserve may not be utilized for cash dividends, but may only be used to offset a future deficit, if any, or may be transferred to share capital. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2017 | |
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Reserves | 28. Reserves (1) Details of reserves, net of taxes, as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Valuation gain on available-for-sale ₩ 168,211 12,534 Other comprehensive loss of investments in associates (320,060 ) (179,167 ) Valuation loss on derivatives (73,828 ) (96,418 ) Foreign currency translation differences for foreign operations (9,050 ) 36,868 ₩ (234,727 ) (226,183 ) (2) Changes in reserves for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Valuation gain on available-for-sale Other compre- Valuation gain Foreign currency Total Balance at January 1, 2017 ₩ 12,534 (179,167 ) (96,418 ) 36,868 (226,183 ) Changes, net of taxes 155,677 (140,893 ) 22,590 (45,918 ) (8,544 ) Balance at December 31, 2017 ₩ 168,211 (320,060 ) (73,828 ) (9,050 ) (234,727 ) (In millions of won) 2016 Valuation gain available-for-sale Other compre- Valuation Foreign currency Total Balance at January 1, 2016 ₩ 232,316 (169,520 ) (83,200 ) 29,707 9,303 Changes, net of taxes (219,782 ) (9,647 ) (13,218 ) 7,161 (235,486 ) Balance at December 31, 2016 ₩ 12,534 (179,167 ) (96,418 ) 36,868 (226,183 ) (3) Changes in valuation gain on available-for-sale (In millions of won) 2017 2016 Balance at January 1 ₩ 12,534 232,316 Amount recognized as other comprehensive income during the year, net of taxes 132,586 4,606 Amount reclassified through profit or loss, net of taxes 23,091 23,091 (224,388 ) Balance at December 31 ₩ 168,211 12,534 (4) Changes in valuation gain (loss) on derivatives for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Balance at January 1 ₩ (96,418 ) (83,200 ) Amount recognized as other comprehensive loss during the year, net of taxes 17,965 (12,213 ) Amount reclassified through profit or loss, net of taxes 4,625 (1,005 ) Balance at December 31 ₩ (73,828 ) (96,418 ) |
Other Operating Income and Expe
Other Operating Income and Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Other Operating Income and Expenses | 29. Other Operating Income and Expenses Details of other operating income andexpenses for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Other Operating Income: Gain on disposal of property and equipment and intangible assets 13,991 6,908 7,140 Others(*) 18,006 59,640 23,795 ₩ 31,997 66,548 30,935 Other Operating Expenses: Communication ₩ 27,973 31,196 43,979 Utilities 299,825 277,497 270,621 Taxes and dues 27,819 35,020 36,118 Repair 333,101 326,076 312,517 Research and development 395,276 344,787 315,790 Training 32,853 33,303 37,278 Bad debt for accounts receivable — trade 34,584 37,820 60,450 Travel 24,095 25,263 27,860 Supplies and other 111,170 113,930 176,248 Loss on disposal of property and equipment and intangible assets 60,086 63,797 21,392 Impairment loss on other investment securities 9,003 24,033 42,966 Impairment loss on property and equipment and intangible assets 54,946 24,506 35,845 Donations 112,634 96,633 72,454 Bad debt for accounts receivable — other 5,793 40,312 15,323 Others(*) 101,589 49,593 55,536 ₩ 1,630,747 1,523,766 1,524,377 (*) See Note 5-(2). |
Finance Income and Costs
Finance Income and Costs | 12 Months Ended |
Dec. 31, 2017 | |
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Finance Income and Costs | 30. Finance Income and Costs (1) Details of finance income and costs for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Finance Income: Interest income ₩ 76,045 54,353 45,884 Gain on sale of accounts receivable — trade 18,548 18,638 — Dividends 12,416 19,161 16,102 Gain on foreign currency transactions 13,676 14,186 18,923 Gain on foreign currency translations 7,110 5,085 5,090 Gain on disposal of long-term investment securities 4,890 459,349 10,786 Gain on valuation of derivatives 223,943 4,132 1,927 Reversal of impairment loss on available-for-sale 9,900 — — Gain relating to financial assets at fair value through profit or loss 33 25 — Gain relating to financial liability at fair value through profit or loss — 121 5,188 ₩ 366,561 575,050 103,900 Finance Costs: Interest expense ₩ 299,100 290,454 297,662 Loss on sale of accounts receivable — trade 9,682 — — Loss on foreign currency transactions 19,263 16,765 17,931 Loss on foreign currency translations 8,419 3,991 4,750 Loss on disposal of long-term investment securities 36,024 2,919 2,599 Loss on settlement of derivatives 10,031 3,428 4,845 Loss relating to financial liability at fair value through profit or loss 678 4,018 526 Impairment loss on long-term investment securities(*) 14,519 5,255 21,787 Other finance costs 35,900 — — ₩ 433,616 326,830 350,100 (*) See Note 30-(5). (2) Details of interest income included in finance income for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest income on cash equivalents and short-term financial instruments ₩ 28,130 20,203 20,009 Interest income on installment receivables and others 47,915 34,150 25,875 ₩ 76,045 54,353 45,884 (3) Details of interest expenses included in finance costs for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest expense on borrowings ₩ 11,774 7,962 19,577 Interest expense on debentures 228,568 239,560 238,450 Interest on finance lease liabilities — — 58 Others 58,758 42,932 39,577 ₩ 299,100 290,454 297,662 (4) Finance income and costs by category of financial instruments for the years ended December 31, 2017, 2016 and 2015 are as follows. Bad debt expense (reversal of allowance for doubtful accounts) for accounts receivable — trade, loans and receivables are presented and explained separately in Note 7. (i) Finance income (In millions of won) 2017 2016 2015 Financial Assets: Financial assets at fair value through profit or loss ₩ 223,976 4,157 1,927 Available-for-sale 30,598 484,300 31,220 Loans and receivables 111,677 86,256 64,749 Sub-total 366,251 574,713 97,896 Financial Liabilities: Financial liabilities at fair value through profit or loss — 121 5,188 Financial liabilities measured at amortized cost 310 216 816 Sub-total 310 337 6,004 ₩ 366,561 575,050 103,900 (ii) Finance costs (In millions of won) 2017 2016 2015 Financial Assets: Financial assets at fair value through profit or loss ₩ — 2,791 4,188 Available-for-sale 86,445 8,174 24,386 Loans and receivables 37,040 15,810 15,861 Derivatives designated as hedging instruments — 637 657 Sub-total 123,485 27,412 45,092 Financial Liabilities: Financial liabilities at fair value through profit or loss 678 4,018 526 Financial liabilities measured at amortized cost 299,422 295,400 304,482 Derivatives designated as hedging instruments 10,031 — — Sub-total 310,131 299,418 305,008 ₩ 433,616 326,830 350,100 (iii) Other comprehensive income (loss) (In millions of won) 2017 2016 2015 Financial Assets: Available-for-sale ₩ 158,440 (223,981 ) (3,661 ) Derivatives designated as hedging instruments 1,554 (172 ) (3,248 ) Sub-total 159,994 (224,153 ) (6,909 ) Financial Liabilities: Derivatives designated as hedging instruments 21,032 (13,046 ) 1,977 Sub-total 21,032 (13,046 ) 1,977 ₩ 181,026 (237,199 ) (4,932 ) (5) Details of impairment losses for financial assets for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Available-for-sale ₩ 14,519 5,255 21,787 Accounts receivable — trade 34,584 37,820 60,450 Other receivables 5,793 40,312 15,323 ₩ 54,896 83,387 97,560 (*) This is included in other finance costs (See Note 30-(1)). |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2017 | |
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Income Tax Expense | 31. Income Tax Expense (1) Income tax expenses for the years ended December 31, 2017, 2016 and 2015 consist of the following: (In millions of won) 2017 2016 2015 Current tax expense Current year ₩ 424,773 473,543 417,022 Current tax of prior years(*) (105,158 ) (11,925 ) (4,124 ) 319,615 461,618 412,898 Deferred tax expense Changes in net deferred tax assets 426,039 (25,580 ) 106,399 Others (tax rate differences, etc.) — — 183 Income tax expense ₩ 745,654 436,038 519,480 (*) Current tax of prior years are mainly composed of the income tax refund due to a change in the interpretation of the tax authority in relation to the income tax previously recognized by the Group. (2) The difference between income taxes computed using the statutory corporate income tax rates and the recorded income taxes for the years ended December 31, 2017, 2016 and 2015 is attributable to the following: (In millions of won) 2017 2016 2015 Income taxes at statutory income tax rate ₩ 823,124 506,804 492,096 Non-taxable (40,080 ) (38,989 ) (85,589 ) Non-deductible 31,285 52,648 44,770 Tax credit and tax reduction (34,300 ) (29,484 ) (25,756 ) Changes in unrecognized deferred taxes 31,857 (84,276 ) 83,623 Others (income tax refund, etc.)(*) (66,232 ) 29,335 10,336 Income tax expense ₩ 745,654 436,038 519,480 (*) Based on the amendment to Korean Tax Law that was enacted in 2017, the income tax rate for taxable income in excess of ₩300,000 million is changed from 24.2% to 27.5%, which will be effective from January 1, 2018. The Group remeasured deferred tax assets and liabilities as a result of this rate change. Tax rates applied for the above taxable income for the years ended December 31, 2017, 2016 and 2015 are corporate income tax rates applied to taxable income in the Republic of Korea, in which the Parent Company is located. (3) Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Valuation gain (loss) on available-for-sale ₩ (55,883 ) 82,993 2,461 Share of other comprehensive income (loss) of associates (260 ) 2 (63 ) Valuation gain (loss) on derivatives (3,019 ) 4,454 (448 ) Remeasurement of defined benefit liabilities 1,618 3,174 2,719 ₩ (57,544 ) 90,623 4,669 (4) Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Deferred tax Directly charged Others Ending Deferred tax assets (liabilities) related to temporary differences: Allowance for doubtful accounts ₩ 61,911 5,091 — — 67,002 Accrued interest income (616 ) (1,851 ) — — (2,467 ) Available-for-sale 101,472 8,192 (55,883 ) — 53,781 Investments in subsidiaries, associates and joint ventures (476,098 ) (461,271 ) (260 ) — (937,629 ) Property and equipment (depreciation) (253,323 ) 17,980 — — (235,343 ) Provisions 7,448 (5,136 ) — — 2,312 Retirement benefit obligation 35,505 1,237 1,618 — 38,360 Valuation gain on derivatives 28,975 — (3,019 ) — 25,956 Gain or loss on foreign currency translation 19,369 2,562 — — 21,931 Reserve for research and manpower development (4,775 ) 2,388 — — (2,387 ) Goodwill 3,105 (938 ) — — 2,167 Others 34,911 (29,248 ) — (2,324 ) 3,339 (442,116 ) (460,994 ) (57,544 ) (2,324 ) (962,978 ) Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards Tax loss carryforwards 37,462 34,955 — — 72,417 ₩ (404,654 ) (426,039 ) (57,544 ) (2,324 ) (890,561 ) (In millions of won) 2016 Beginning Deferred tax Directly charged Ending Deferred tax assets (liabilities) related to temporary differences: Allowance for doubtful accounts ₩ 59,957 1,954 — 61,911 Accrued interest income (2,567 ) 1,951 — (616 ) Available-for-sale 30,365 (11,886 ) 82,993 101,472 Investments in subsidiaries, associates and joint ventures (355,273 ) (120,827 ) 2 (476,098 ) Property and equipment (depreciation) (327,572 ) 74,249 — (253,323 ) Provisions 2,485 4,963 — 7,448 Retirement benefit obligation 28,327 4,004 3,174 35,505 Valuation gain on derivatives 24,521 — 4,454 28,975 Gain or loss on foreign currency translation 19,517 (148 ) — 19,369 Reserve for research and manpower development (7,162 ) 2,387 — (4,775 ) Goodwill 3,713 (608 ) — 3,105 Unearned revenue (activation fees) 2,065 (2,065 ) — — Others (23,782 ) 58,693 — 34,911 (545,406 ) 12,667 90,623 (442,116 ) Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards Tax loss carryforwards 24,549 12,913 — 37,462 ₩ (520,857 ) 25,580 90,623 (404,654 ) (5) Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are not recognized as deferred tax assets, in the consolidated statements of financial position as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Allowance for doubtful accounts ₩ 88,521 165,935 Investments in subsidiaries, associates and joint ventures 168,268 228,025 Other temporary differences 425,653 320,260 Unused tax loss carryforwards 921,309 755,050 Unused tax credit carryforwards 4,092 1,211 (6) The amount of unused tax loss carryforwards and unused tax credit carryforwards which are not recognized as deferred tax assets as of December 31, 2017 are expiring within: (In millions of won) Unused tax loss carryforwards Unused tax credit carryforwards Less than 1 year ₩ — 869 1 ~ 2 years 7,686 101 2 ~ 3 years 358,237 119 More than 3 years 555,386 3,003 ₩ 921,309 4,092 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings per Share | 32. Earnings per Share (1) Basic earnings per share 1) Basic earnings per share for the years ended December 31, 2017, 2016 and 2015 are calculated as follows: (In millions of won, shares) 2017 2016 2015 Basic earnings per share attributable to owners of the Parent Company: Profit attributable to owners of the Parent Company ₩ 2,599,829 1,675,967 1,518,604 Interest on hybrid bonds (16,840 ) (16,840 ) (16,840 ) Profit attributable to owners of the Parent Company on common shares 2,582,989 1,659,127 1,501,764 Weighted average number of common shares outstanding 70,609,160 70,609,160 71,551,966 Basic earnings per share (in won) ₩ 36,582 23,497 20,988 2) The weighted average number of common shares outstanding for the years ended December 31, 2017, 2016 and 2015 are calculated as follows: (In shares) 2017 2016 2015 Issued common shares at January 1 80,745,711 80,745,711 80,745,711 Effect of treasury shares (10,136,551 ) (10,136,551 ) (9,193,745 ) Weighted average number of common shares outstanding at December 31 70,609,160 70,609,160 71,551,966 (2) Diluted earnings per share For the years ended December 31, 2017, 2016 and 2015, diluted earnings per share are the same as basic earnings per share as there are no dilutive potential common shares. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2017 | |
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Dividends | 33. Dividends (1) Details of dividends declared Details of dividend declared for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won, except for face value and share data) Year Dividend type Number of Face value Dividend Dividends 2017 Cash dividends (Interim) 70,609,160 500 200 % ₩ 70,609 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 706,091 2016 Cash dividends (Interim) 70,609,160 500 200 % ₩ 70,609 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 706,091 2015 Cash dividends (Interim) 72,629,160 500 200 % ₩ 72,629 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 708,111 (2) Dividends yield ratio Dividends yield ratios for the years ended December 31, 2017, 2016 and 2015 are as follows: (In won) Year Dividend type Dividend per share Closing price at year-end Dividend yield ratio 2017 Cash dividends 10,000 267,000 3.75% 2016 Cash dividends 10,000 224,000 4.46% 2015 Cash dividends 10,000 215,500 4.64% |
Categories of Financial Instrum
Categories of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Categories of Financial Instruments | 34. Categories of Financial Instruments (1) Financial assets by category as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Financial assets Available- for-sale financial assets Loans and Derivatives Total Cash and cash equivalents ₩ — — 1,457,735 — 1,457,735 Financial instruments — — 618,002 — 618,002 Short-term investment securities 97,003 47,383 — — 144,386 Long-term investment securities — 887,007 — — 887,007 Accounts receivable — trade — — 2,138,755 — 2,138,755 Loans and other receivables(*) — — 1,962,083 — 1,962,083 Derivative financial assets 231,311 — — 21,902 253,213 ₩ 328,314 934,390 6,176,575 21,902 7,461,181 (In millions of won) December 31, 2016 Financial assets Available- for-sale Loans and Derivatives Total Cash and cash equivalents ₩ — — 1,505,242 — 1,505,242 Financial instruments — — 469,705 — 469,705 Short-term investment securities — 107,364 — — 107,364 Long-term investment securities — 828,521 — — 828,521 Accounts receivable — trade — — 2,261,311 — 2,261,311 Loans and other receivables(*) — — 1,701,249 — 1,701,249 Derivative financial assets 7,368 — — 207,402 214,770 ₩ 7,368 935,885 5,937,507 207,402 7,088,162 (*) Details of loans and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Short-term loans ₩ 62,830 58,979 Accounts receivable — other 1,260,835 1,121,444 Accrued income 3,979 2,780 Other current assets 3,927 3,937 Long-term loans 50,874 65,476 Long-term accounts receivable — other 287,048 149,669 Guarantee deposits 292,590 298,964 ₩ 1,962,083 1,701,249 (2) Financial liabilities by category as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Financial Financial Derivatives Total Accounts payable — trade ₩ — 351,711 — 351,711 Derivative financial liabilities — — 39,470 39,470 Borrowings — 382,817 — 382,817 Debentures(*1) 60,278 7,025,909 — 7,086,187 Accounts payable — other and others(*2) — 4,865,519 — 4,865,519 ₩ 60,278 12,625,956 39,470 12,725,704 (In millions of won) December 31, 2016 Financial Financial Derivatives Total Accounts payable — trade ₩ — 402,445 — 402,445 Derivative financial liabilities — — 87,153 87,153 Borrowings — 175,521 — 175,521 Debentures(*1) 59,600 7,134,606 — 7,194,206 Accounts payable — other and others (*2) — 4,842,734 — 4,842,734 ₩ 59,600 12,555,306 87,153 12,702,059 (*1) Bonds classified as financial liabilities at fair value through profit or loss as of December 31, 2017 and 2016 are structured bonds and they were designated as financial liabilities at fair value through profit or loss in order to eliminate a measurement inconsistency with the related derivatives. (*2) Details of accounts payable — other and others as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Accounts payable — other ₩ 1,867,074 1,767,799 Withholdings 1,736 1,525 Accrued expenses 1,327,906 1,125,816 Current portion of long-term payables — other 302,703 301,773 Long-term payables — other 1,346,763 1,624,590 Other non-current 19,337 21,231 ₩ 4,865,519 4,842,734 |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
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Financial Risk Management | 35. Financial Risk Management (1) Financial risk management The Group is exposed to credit risk, liquidity risk and market risk. Market risk is the risk related to the changes in market prices, such as foreign exchange rates, interest rates and equity prices. The Group implements a risk management system to monitor and manage these specific risks. The Group’s financial assets consist of cash and cash equivalents, financial instruments, available-for-sale 1) Market risk (i) Currency risk The Group incurs exchange position due to revenue and expenses from its global operations. Major foreign currencies where the currency risk occur are USD, JPY and EUR. The Group determines the currency risk management policy after considering the nature of business and the presence of methods that mitigate the currency risk for each Group entities. Currency risk occurs on forecasted transactions and recognized assets and liabilities which are denominated in a currency other than the functional currency of each Group entity. The Group manages currency risk arising from business transactions by using currency forwards, etc. Monetary assets and liabilities denominated in foreign currencies as of December 31, 2017 are as follows: (In millions of won, thousands of foreign currencies) Assets Liabilities Foreign currencies Won Foreign currencies Won USD 124,901 ₩ 133,836 1,817,808 ₩ 1,947,599 EUR 15,669 20,044 63 80 JPY 596,059 5,658 169,729 1,611 Others — 530 — 195 ₩ 160,068 ₩ 1,949,485 In addition, the Group has entered into cross currency swaps to hedge against currency risk related to foreign currency borrowings and debentures. (Refer to Note 22) As of December 31, 2017, a hypothetical change in exchange rates by 10% would have increase (reduce) the Group’s income before income tax as follows: (In millions of won) If increased by 10% If decreased by 10% USD ₩ 5,590 (5,590 ) EUR 1,997 (1,997 ) JPY 405 (405 ) Others 34 (34 ) ₩ 8,026 (8,026 ) (ii) Equity price risk The Group has listed and non-listed available-for-sale (iii) Interest rate risk The interest rate risk of the Group arises from borrowings and debenture. Since the Group’s interest bearing assets are mostly fixed-interest bearing assets, the Group’s revenue and operating cash flows are not influenced by the changes in market interest rates. Accordingly, the Group performs various analysis to reduce interest rate risk and to optimize its financing. To minimize risks arising from changes in interest rates, the Group takes various measures such as refinancing, renewal, alternative financing and hedging. As of December 31, 2017, the floating-rate borrowings and bonds of the Group are ₩228,300 million and ₩321,420 million, respectively, and the Group has entered into interest rate swap agreements, as described in Note 22, for all floating-rate borrowings and debentures to hedge interest rate risk. If the interest rate increases (decreases) 1% with all other variables held constant, income before income taxes for the year ended December 31, 2017, would change by ₩707 million in relation to floating-rate borrowings that are exposed to interest rate risk. 2) Credit risk The maximum credit exposure as of December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Cash and cash equivalents ₩ 1,457,416 1,505,082 Financial instruments 618,002 469,705 Available-for-sale 19,928 6,755 Accounts receivable — trade 2,138,755 2,261,311 Loans and other receivables 1,962,083 1,701,249 Derivative financial assets 30,956 214,770 ₩ 6,227,140 6,158,872 Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet his/her contractual obligations. To manage credit risk, the Group evaluates the credit worthiness of each customer or counterparty considering the party’s financial information, its own trading records and other factors. Based on such information, the Group establishes credit limits for each customer or counterparty. The Group establishes an allowance for doubtful account that represents its estimate of incurred losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Also, the Group’s credit risk can arise due to transactions with financial institutions related to its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Group is the carrying amount of financial assets as of December 31, 2017. 3) Liquidity risk The Group’s approach to managing liquidity is to ensure that it will always maintain sufficient cash and cash equivalents balances and have enough liquidity through various committed credit lines. The Group maintains enough liquidity within credit lines through active operating activities. Contractual maturities of financial liabilities as of December 31, 2017 are as follows: (In millions of won) Carrying Contractual Less than 1 - 5 More than Accounts payable — trade ₩ 351,711 351,711 351,711 — — Borrowings(*1) 382,817 397,776 177,910 219,866 — Debentures(*1) 7,086,187 8,230,952 1,682,206 3,675,178 2,873,568 Accounts payable — other and others(*2) 4,865,519 5,030,105 3,519,489 1,093,611 417,005 ₩ 12,686,234 14,010,544 5,731,316 4,988,655 3,290,573 The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at different amounts. (*1) Includes interest payables. (*2) The Group provides with USD 12,240,000 of payment guarantees for Celcom Planet, one of the joint ventures of the Group, in relation to its borrowings. The contractual cash flows for accounts payable — other and others include the maximum amount that the Group is required to pay in connection with the guarantees. As of December 31, 2017, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows: (In millions of won) Carrying Contractual Less than 1 year 1 - 5 years More than 5 years Assets ₩ 21,902 17,118 7,446 28,075 (18,403 ) Liabilities (39,470 ) (40,220 ) (28,960 ) (11,260 ) — ₩ (17,568) (23,102) (21,514 ) 16,815 (18,403 ) (2) Capital management The Group manages its capital to ensure that it will be able to continue as a business while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Group is the same as that of the Group as of and for the year ended December 31, 2016. The Group monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total equity; both are from the consolidated financial statements. Debt-equity ratio as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Total liabilities ₩ 15,399,474 15,181,233 Total equity 18,029,195 16,116,430 Debt-equity ratios 85.41 % 94.20 % (3) Fair value 1) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2017 are as follows: (In millions of won) December 31, 2017 Carrying Level 1 Level 2 Level 3 Total Financial assets that are measured at fair value Financial assets at fair value through profit or loss ₩ 328,314 — 106,057 222,257 328,314 Derivative financial assets 21,902 — 21,902 — 21,902 Available-for-sale 734,487 589,202 47,383 97,902 734,487 ₩ 1,084,703 589,202 175,342 320,159 1,084,703 Financial liabilities that are measured at fair value Financial liabilities at fair value through profit or loss ₩ 60,278 — 60,278 — 60,278 Derivative financial liabilities 39,470 — 39,470 — 39,470 ₩ 99,748 — 99,748 — 99,748 Financial liabilities that are not measured at fair value Borrowings ₩ 382,817 — 383,748 — 383,748 Debentures 7,025,909 — 7,325,370 — 7,325,370 Long-term payables — other 1,649,466 — 1,766,451 — 1,766,451 ₩ 9,058,192 — 9,475,569 — 9,475,569 2) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2016 are as follows: (In millions of won) December 31, 2016 Carrying Level 1 Level 2 Level 3 Total Financial assets that are measured at fair value: Financial assets at fair value through profit or loss ₩ 7,368 — 7,368 — 7,368 Derivative financial assets 207,402 — 207,402 — 207,402 Available-for-sale 741,285 526,363 107,364 107,558 741,285 ₩ 956,055 526,363 322,134 107,558 956,055 Financial liabilities that are measured at fair value: Financial liabilities at fair value through profit or loss ₩ 59,600 — 59,600 — 59,600 Derivative financial liabilities 87,153 — 87,153 — 87,153 ₩ 146,753 — 146,753 — 146,753 Financial liabilities that are not measured at fair value: Borrowings ₩ 175,521 — 177,600 — 177,600 Debentures 7,134,606 — 7,568,361 — 7,568,361 Long-term payables — other 1,926,363 — 2,103,788 — 2,103,788 ₩ 9,236,490 — 9,849,749 — 9,849,749 The above information does not include fair values of financial assets and liabilities of which fair values have not been measured as carrying amounts are reasonable approximation of fair values. Available-for-sale Fair value of the financial instruments that are traded in an active market (available-for-sale The Group uses various valuation methods for determination of fair value of financial instruments that are not traded in an active market. Fair value of available-for-sale Interest rates used by the Group for the fair value measurement as of December 31, 2017 are as follows: Interest rate Derivative instruments 1.54% ~ 2.67% Borrowings and debentures 2.48% ~ 2.55% Long-term payables — other 2.23% ~ 2.60% 3) There have been no transfers from Level 2 to Level 1 in 2017 and changes of financial assets classified as Level 3 for the year ended December 31, 2017 are as follows: (In millions of won) Balance at Valuation Transfer Other compre- Disposal Balance at ending Financial assets at fair value through profit or loss(*) ₩ — 222,257 — — — 222,257 Available-for-sale 107,558 — 3,938 (8,942 ) (4,652 ) 97,902 (*) The Group holds redeemable convertible preferred shares issued by Bluehole INC. The conversion rights attached to the investments are bifurcated from the host contract as embedded derivatives and the Group recognized ₩222,257 million as financial assets at FVTPL and gain on valuation of derivatives, respectively, as of and during the year ended December 31, 2017. The host contract was recognized as available-for-sale The major inputs used and their correlations with the fair value measurements are as follows. Significant non-observable Correlations between inputs and fair value measurements Value of common shares If the value of common share increases (decreases), Fair value will increase (decrease) Exercise price If the exercise price increases (decreases), Fair value will decrease (increase) Discount rate If the discount rate increases (decreases), Fair value will decrease (increase) Volatility If the share price volatility increases (decreases), Fair value will increase (decrease) (4) Enforceable master netting agreement or similar agreement Carrying amount of financial instruments recognized of which offset agreements are applicable as of December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Gross Amount Net financial Relevant amount not Net Financial instruments Financial assets: Derivatives(*) ₩ 26,645 — 26,645 (19,875 ) 6,770 Accounts receivable — trade and others 93,146 (92,409 ) 737 — 737 ₩ 119,791 (92,409 ) 27,382 (19,875 ) 7,507 Financial liabilities: Derivatives(*) ₩ 19,875 — 19,875 (19,875 ) — Accounts payable — other and others 92,409 (92,409 ) — — — ₩ 112,284 (92,409 ) 19,875 (19,875 ) — (In millions of won) 2016 Gross Amount Net financial Relevant amount not Net Financial instruments Financial assets: Derivatives(*) ₩ 87,566 — 87,566 (87,153 ) 413 Accounts receivable — trade and others 114,135 (103,852 ) 10,283 — 10,283 ₩ 201,701 (103,852 ) 97,849 (87,153 ) 10,696 Financial liabilities: Derivatives(*) ₩ 87,153 — 87,153 (87,153 ) — Accounts payable — other and others 103,852 (103,852 ) — — — ₩ 191,005 (103,852 ) 87,153 (87,153 ) — (*) The Group entered into derivative contracts which include enforceable master netting arrangement in accordance with International Swap and Derivatives Association (ISDA). Generally, all contracts made with the identical currencies are settled from one party to another by combining one net amount. In this case, all contracts are liquidated and paid off at net amount by evaluating liquidation value if credit events such as bankruptcy occur. ISDAagreements do not allow the Group to exercise rights of set-off set-off. |
Related Parties and Others
Related Parties and Others | 12 Months Ended |
Dec. 31, 2017 | |
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Related Parties and Others | 36. Related Parties and Others (1) List of related parties Relationship Company Ultimate Controlling Entity SK Holdings Co., Ltd. Joint ventures Dogus Planet, Inc. and 3 others Associates SK hynix Inc. and 40 others Others The Ultimate Controlling Entity’s subsidiaries and associates, etc. (2) Compensation for the key management The Parent Company considers registered directors who have substantial role and responsibility in planning, operations, and relevant controls of the business as key management. The compensation given to such key management for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Salaries ₩ 2,169 1,645 1,971 Defined benefits plan expenses 258 424 626 Share option 414 — — ₩ 2,841 2,069 2,597 Compensation for the key management includes salaries, non-monetary (3) Transactions with related parties for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 Scope Company Operating Operating Acquisition of Collection Ultimate Controlling Entity SK Holdings Co., Ltd.(*1) ₩ 25,049 600,600 283,556 — Associates F&U Credit information Co., Ltd. 3,431 52,150 153 — HappyNarae Co., Ltd. 3,025 29,276 68,472 — SK hynix Inc(*2) 123,873 251 — — KEB HanaCard Co., Ltd. 17,873 15,045 — — Others(*3) 10,720 33,389 940 204 158,922 130,111 69,565 204 Others SK Engineering & Construction Co., Ltd. 5,865 1,077 — — SK Networks Co., Ltd. 21,694 1,220,251 671 — SK Networks Services Co., Ltd. 510 96,949 6,346 — SK Telesys Co., Ltd. 417 51,394 152,659 — SK TNS Co., Ltd. 137 37,051 494,621 — SK Energy Co., Ltd. 8,505 779 — — SK Gas Co., Ltd. 2,727 4 — — SK Innovation Co., Ltd. 7,639 950 — — SK Shipping Co., Ltd. 3,183 35 — — Ko-one 5,164 44 — — SK infosec Co., Ltd. 1,185 52,634 15,648 — SKC INFRA SERVICE Co., Ltd. 19 46,900 47,163 — Others 18,233 28,209 17 — 75,278 1,536,277 717,125 — Total ₩ 259,249 2,266,988 1,070,246 204 (*1) Operating expense and others include ₩203,635 million of dividends paid by the Parent Company. (*2) Operating revenue and others include ₩87,660 million of dividends received from SK Hynix Inc. which was deducted from the investment in associates. (*3) Operating revenue and others include ₩6,597 million of dividends received from the Korea IT Fund and others. (In millions of won) 2016 Scope Company Operating Operating Acquisition of property and Loans Collection Ultimate Controlling Entity SK Holdings Co., Ltd.(*1) ₩ 23,104 652,855 235,502 — — Associates F&U Credit information Co., Ltd. 2,865 47,905 — — — HappyNarae Co., Ltd. 304 15,506 38,984 — — SK hynix Inc.(*2) 100,861 306 — — — KEB HanaCard Co., Ltd. 19,730 14,804 — — — Others(*3) 8,018 21,853 1,573 1,100 3,194 131,778 100,374 40,557 1,100 3,194 Others SK Engineering & Construction Co., Ltd. 5,916 1,739 10,694 — — SK Networks Co., Ltd. 13,756 1,131,567 — — — SK Networks Services Co., Ltd. 1,248 94,906 6,793 — — SK Telesys Co., Ltd. 419 52,488 142,605 — — SK TNS Co., Ltd. 109 48,192 387,496 — — SK Energy Co., Ltd. 7,670 834 — — — SK Gas Co., Ltd. 2,500 4 — — — SK Innovation Co., Ltd. 9,757 915 1,080 — — SK Shipping Co., Ltd. 5,435 — — — — Ko-one 6,005 46 — — — SK infosec Co., Ltd. 230 53,068 19,882 — — SKC INFRA SERVICE Co., Ltd. 43 30,663 32,141 — — Others 13,437 17,626 246 — — 66,525 1,432,048 600,937 — — Total ₩ 221,407 2,185,277 876,996 1,100 3,194 (*1) Operating expense and others include ₩203,635 million of dividends paid by the Parent Company. (*2) Operating revenue and others include ₩73,050 million of dividends paid by the associate which was deducted from the investment in associates. (*3) Operating revenue and others include ₩6,082 million of dividends received from the Korea IT Fund. (In millions of won) 2015 Scope Company Operating others Operating Acquisition of Loans Collection Ultimate Controlling Entity SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*1) ₩ 20,260 324,078 236,414 — — SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.)(*2,3) 1,299 212,378 117 — — 21,559 536,456 236,531 — — Associates F&U Credit information Co., Ltd. 2,510 43,967 — — — HappyNarae Co., Ltd. 297 6,886 13,495 — — SK hynix Inc.(*4) 55,949 2,384 — — — SK Wyverns Baseball Club., Ltd. 3,849 18,544 — — 204 KEB HanaCard Co., Ltd. 21,414 16,057 — — — Xian Tianlong Science and Technology Co., Ltd. — — — 8,287 — Others(*5) 6,397 11,917 1,864 690 — 90,416 99,755 15,359 8,977 204 Other SK Engineering & Construction Co., Ltd. 15,598 27,243 240,701 — — SK Networks Co., Ltd. 11,923 1,257,975 2 — — SK Networks Services Co., Ltd. 10,491 94,097 6,472 — — SK Telesys Co., Ltd. 397 48,900 141,870 — — SK Energy Co., Ltd. 9,930 978 — — — SK Gas Co., Ltd. 3,561 2 — — — Others 29,409 71,314 194,945 — — 81,309 1,500,509 583,990 — — Total ₩ 193,284 2,136,720 835,880 8,977 204 (*1) On August 1, 2015, SK C&C Co., Ltd., the ultimate controlling entity of the Parent Company merged with SK Holdings Co., Ltd., its equity method investee, and changed its name to SK Holdings Co., Ltd. (*2) These relates to transactions occurred before July 31, 2015, the date of merger with SK C&C Co., Ltd. (*3) Operating expense and others include ₩191,416 million of dividends paid by the Parent Company. (*4) Operating revenue and others include ₩43,830 million of dividends paid by SK hynix Inc. and was deducted from the investment in associates. (*5) Operating revenue and others include ₩2,103 million and ₩457 million of dividends paid by Korea IT Fund and UniSK, respectively, and was deducted from the investments in associates. (4) Account balances with related parties as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Accounts receivable Accounts payable Scope Company Loans Accounts receivable-trade Accounts payable-other Ultimate Controlling Entity SK Holdings Co., Ltd. ₩ — 2,068 148,066 Associates HappyNarae Co., Ltd. — 15 6,865 F&U Credit information Co., Ltd. — 21 1,612 SK hynix Inc. — 2,803 94 Wave City Development Co., Ltd. — 38,412 — Daehan Kanggun BcN Co., Ltd.(*) 22,147 — — KEB HanaCard Co., Ltd. — 1,427 11,099 S.M. Culture & Contents Co., Ltd. — 448 8,963 Xian Tianlong Science and Technology Co., Ltd. 7,032 — — Others 611 2,272 1,164 29,790 45,398 29,797 Other SK Engineering & Construction Co., Ltd. — 2,033 69 SK Networks. Co., Ltd. — 3,050 267,297 SK Networks Services Co., Ltd. — 15 9,522 SK Telesys Co., Ltd. — 36 58,346 SK TNS Co., Ltd. — 3 140,311 SK Innovation Co., Ltd. — 4,112 599 SK Energy Co., Ltd. — 2,965 582 SK Gas Co., Ltd. — 1,941 9 Others — 2,998 27,318 — 17,153 504,053 Total ₩ 29,790 64,619 681,916 (*) The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd as of December 31, 2017. (In millions of won) December 31, 2016 Accounts receivable Accounts payable Scope Company Loans Accounts receivable-trade Accounts payable-other Ultimate Controlling Entity SK Holdings Co., Ltd. ₩ — 3,519 149,574 Associates HappyNarae Co., Ltd. — 18 21,063 F&U Credit information Co., Ltd. — 34 1,328 SK hynix Inc. — 22,379 92 Wave City Development Co., Ltd. — 38,412 — Daehan Kanggun BcN Co., Ltd.(*) 22,147 — — KEB HanaCard Co., Ltd. — 1,619 7,676 Xian Tianlong Science and Technology Co., Ltd. 8,287 — — Others 813 4,191 945 31,247 66,653 31,104 Other SK Engineering & Construction Co., Ltd. — 1,808 4,975 SK Networks. Co., Ltd. — 3,254 247,728 SK Networks Services Co., Ltd. — 13 13,913 SK Telesys Co., Ltd. — 20 24,918 SK TNS Co., Ltd. — 3 68,276 SK Innovation Co., Ltd. — 1,350 892 SK Energy Co., Ltd. — 1,213 113 SK Gas Co., Ltd. — 1,769 9 Others — 2,783 30,209 — 12,213 391,033 Total ₩ 31,247 82,385 571,711 (*) The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd. as of December 31, 2016. (5) SK m&service Co., Ltd., a subsidiary of the Parent Company, has entered into a performance agreement with SK Energy Co., Ltd. and provided a blank note to SK Energy Co., Ltd., with regard to this transaction. (6) As of December 31, 2017, the Group provides with USD 12,240,000 of payment guarantees for the borrowings of the Celcom Planet, the joint ventures of the Group. (7) There were additional investments in associates and joint ventures during the years ended December 31, 2017 and 2016 as presented in Note 12. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments and Contingencies | 37. Commitments and Contingencies (1) Collateral assets and commitments SK Broadband Co., Ltd., a subsidiary of the Parent Company, has pledged its properties as collateral for leases on buildings in the amount of ₩4,144 million as of December 31, 2017. SK Broadband Co., Ltd., has guaranteed for employees’ borrowings relating to employee stock ownership program and provided short-term financial instruments amounting to ₩300 million as collateral as of December 31, 2017. (2) Legal claims and litigations As of December 31, 2017 the Group is involved in various legal claims and litigation. Provision recognized in relation to these claims and litigation is immaterial. In connection with those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation, nor is it expected any of these claims or litigation will have a significant impact on the Group’s financial position or operating results in the event an outflow of resources is ultimately necessary. (3) Accounts receivables from sale of handsets The sales agents of the Parent Company sell handsets to the Parent Company’s subscribers on an installment basis. During the year ended December 31, 2017, the Parent Company entered into a comprehensive agreement to purchase the accounts receivables from handset sales with agents and to transfer the accounts receivables from handset sales to special purpose companies which were established with the purpose of liquidating receivables, respectively. The accounts receivables from sale of handsets amounting to ₩1,111,614 million as of December 31, 2017, which the Parent Company purchased according to the relevant comprehensive agreement are recognized as accounts receivable — other and long-term accounts receivable — other. |
Statements of Cash Flows
Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
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Statements of Cash Flows | 38. Statements of Cash Flows (1) Adjustments for income and expenses from operating activities for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest income ₩ (76,045 ) (54,353 ) (45,884 ) Dividend (12,416 ) (19,161 ) (16,102 ) Gain on foreign currency translation (7,110 ) (5,085 ) (5,090 ) Gain on disposal of long-term investment securities (4,890 ) (459,349 ) (10,786 ) Gain on valuation of derivatives (223,943 ) (4,132 ) (1,927 ) Gain relating to investments in associates and joint ventures, net (2,245,732 ) (544,501 ) (786,140 ) Gain on sale of accounts receivable — trade (18,548 ) (18,638 ) — Gain on disposal of property and equipment and intangible assets (13,991 ) (6,908 ) (7,140 ) Gain relating to financial assets at fair value through profit or loss (33 ) (25 ) — Gain related to financial liabilities at fair value through profit or loss — (121 ) (5,188 ) Reversal of impairment loss on available-for-sale (9,900 ) — — Other income (1,129 ) (2,123 ) (7,577 ) Interest expenses 299,100 290,454 297,662 Loss on foreign currency translation 8,419 3,991 4,750 Loss on disposal of long-term investment securities 36,024 2,919 2,599 Other finance costs 14,519 5,255 21,787 Loss on sale of accounts receivable — trade 9,682 — — Loss on settlement of derivatives 10,031 3,428 4,845 Income tax expense 745,654 436,038 519,480 Expense related to defined benefit plan 127,696 118,143 110,021 Share option 414 — — Depreciation and amortization 3,247,519 3,068,558 2,993,486 Bad debt expense 34,584 37,820 60,450 Loss on disposal of property and equipment and intangible assets 60,086 63,797 21,392 Impairment loss on property and equipment and intangible assets 54,946 24,506 35,845 Loss relating to financial liabilities at fair value through profit or loss 678 4,018 526 Bad debt for accounts receivable — other 5,793 40,312 15,323 Loss on impairment of investment assets 9,003 24,033 42,966 Other expenses 46,353 30,685 4,845 ₩ 2,096,764 3,039,561 3,250,143 (2) Changes in assets and liabilities from operating activities for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Accounts receivable — trade ₩ 46,144 88,549 7,554 Accounts receivable — other (159,960 ) (446,286 ) (11,108 ) Accrued income 14 445 116 Advance payments (1,269 ) 47,615 (35,906 ) Prepaid expenses (28,362 ) (30,311 ) (40,464 ) Value-Added Tax refundable (3,080 ) (4,587 ) 1,385 Inventories (17,958 ) 798 (7,814 ) Long-term accounts receivable — other (137,979 ) (147,117 ) — Guarantee deposits 14,696 4,844 (11,238 ) Accounts payable — trade (26,151 ) 75,585 12,442 Accounts payable — other 134,542 316,464 (107,114 ) Advanced receipts (13,470 ) 37,429 6,421 Withholdings (13,041 ) 107,516 (191,209 ) Deposits received (4,916 ) (2,153 ) (9,661 ) Accrued expenses 116,065 173,072 (28,845 ) Value-Added Tax payable 7,505 (4,072 ) 3,494 Unearned revenue (339 ) (36,209 ) (115,187 ) Provisions (20,488 ) 20,235 (30,562 ) Long-term provisions (2,449 ) 4,115 (4,447 ) Plan assets (95,828 ) (125,440 ) (67,831 ) Retirement benefit payment (60,883 ) (55,350 ) (58,513 ) Others 5,739 (11,378 ) 2,753 ₩(261,468) 13,764 (685,734 ) (3) Significant non-cash (In millions of won) 2017 2016 2015 Increase of accounts payable — other related to acquisition of property and equipment and intangible assets ₩ 44,214 1,511,913 39,973 (4) Reconciliation of liabilities arising from financing activities for the year ended December 31, 2017 is as follows: (In millions of won) January 1, Cash Non-cash December 31, Exchange rate Fair value changes Other changes Total liabilities from financing Short-term borrowings ₩ 2,614 127,386 — — — 130,000 Long-term borrowings 172,906 87,299 (7,898 ) — 510 252,817 Debentures 7,194,207 130,558 (245,456 ) — 6,878 7,086,187 Long-term payables — other 1,918,024 (305,476 ) — — 28,533 1,641,081 Derivative financial liabilities 87,153 (105,269 ) 13,281 39,267 5,038 39,470 Derivative financial assets (214,770 ) 188 922 (40,235 ) 682 (253,213 ) ₩ 9,160,134 (65,314 ) (239,151 ) (968 ) 41,641 8,896,342 Other cash flows from financing Payments of cash dividends ₩ (706,091 ) Payments of interest on hybrid bond (16,840 ) Transactions with non-controlling (38,373 ) (761,304 ) Total ₩ (826,618 ) |
Cash Dividends paid to the Pare
Cash Dividends paid to the Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
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Cash Dividends paid to the Parent Company | 39. Cash Dividends paid to the Parent Company Cash dividends received from the consolidated subsidiaries and associates for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Cash dividends received from consolidated subsidiaries ₩ — 15,693 — Cash dividends received from associates 89,063 79,132 46,390 ₩ 89,063 94,825 46,390 |
Significant Accounting Polici46
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Operating segments | (1) Operating segments An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group’s operating segments have been determined to be each business unit, for which the Group generates separately identifiable financial information that is regularly reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance. The Group has four reportable segments which consist of cellular services, fixed-line telecommunication services, e-commerce The Group’s chief operating decision maker receives and reviews operating income based on Korean IFRS as the measure of segment profit and loss for each operating segment. Segment operating income differs from consolidated operating income used in the Group’s consolidated statements of income. Segment operating profit does not include certain items such as fee revenues, gain/loss from disposal of property, plant, equipment and intangible assets, impairment losses on property, plant, equipment and intangible assets, donations, bad debt expense and penalties. The chief operating decision maker does not receive any information about segment assets and liabilities. |
Basis of consolidation | (2) Basis of consolidation (i) Business combination A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. Consideration transferred is generally measured at fair value, identical to the measurement of identifiable net assets acquired at fair value. The difference between the acquired company’s fair value and the consideration transferred is accounted for goodwill. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. Acquisition-related costs are expensed in the periods in which the costs are incurred and the services are received excluding costs to issue debt or equity securities recognized based on IAS 32 and 39. Consideration transferred does not include the amount settled in relation to the pre-existing pre-existing Contingent consideration is measured at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. If contingent consideration is not classified as equity, the Group subsequently recognizes changes in fair value of contingent consideration through profit or loss. (ii) Non-controlling Non-controlling Changes in a Controlling Company’s ownership interest in a subsidiary that do not result in the Controlling Company losing control of the subsidiary are accounted for as equity transactions. (iii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of an investee begins from the date the Group obtains control of the investee and cease when the Group loses control of the investee. (iv) Loss of control If the Group loses control of a subsidiary, the Group derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position and recognizes gain or loss associated with the loss of control attributable to the former controlling interest. Any investment retained in the former subsidiary is recognized at its fair value when control is lost. (v) Interest in investees accounted for using the equity method Interest in investees accounted for using the equity method composed of interest in associates and joint ventures. An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. A joint venture is a joint arrangement whereby the Group that has joint control of the arrangement has rights to the net assets of the arrangement. The investment in an associate and a joint venture is initially recognized at cost including transaction costs and the carrying amount is increased or decreased to recognize the Group’s share of the profit or loss and changes in equity of the associate or the joint venture after the date of acquisition. (vi) Intra-group transactions Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The Group’s share of unrealized gain incurred from transactions with investees accounted for using the equity method are eliminated and unrealized loss are eliminated using the same basis if there are no evidence of asset impairments. (vii) Business combinations under common control SK Holdings Co., Ltd. is the ultimate controlling entity of the Group. The assets and liabilities acquired under business combination under common control are recognized at the carrying amounts in the ultimate controlling shareholder’s consolidated financial statements. The difference between consideration and carrying amount of net assets acquired is added to or subtracted from capital surplus and others. |
Cash and cash equivalents | (3) Cash and cash equivalents Cash and cash equivalents comprise cash balances, call deposits and financial assets with maturities of three months or less from the acquisition date that are easily convertible to cash and subject to an insignificant risk of changes in their fair value. |
Inventories | (4) Inventories Inventories are stated at the acquisition cost using the average method. During the period, a perpetual inventory system is used to track inventory quantities, which is adjusted to the physical inventory counts performed at the period end. When the net realizable value of inventories is less than the acquisition cost, the carrying amount is reduced to the net realizable value and any difference is charged to current operations as operating expenses. |
Non-derivative financial assets | (5) Non-derivative The Group recognizes and measures non-derivative held-to-maturity available-for-sale Upon initial recognition, non-derivative (i) Financial assets at fair value through profit or loss A financial asset is classified as financial asset at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (ii) Held-to-maturity A non-derivative held-to-maturity held-to-maturity (iii) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method except for loans and receivables of which the effect of discounting is immaterial. (iv) Available-for-sale Available-for-sale non-derivative available-for-sale held-to-maturity (v) De-recognition The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. (vi) Offsetting between financial assets and financial liabilities Financial assets and liabilities are offset and the net amount is presented in the consolidated statement of financial position only when the Group currently has a legally enforceable right to offset the recognized amounts, and there is the intention to settle on a net basis or to realize the asset and settle the liability simultaneously. |
Derivative financial instruments, including hedge accounting | (6) Derivative financial instruments, including hedge accounting Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. (i) Hedge accounting The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Group designates derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge). On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. Fair value hedge Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value for a derivative hedging instrument and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the consolidated statement of income. The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria for hedge accounting. Any adjustment arising from gain or loss on the hedged item attributable to the hedged risk is amortized to profit or loss from the date the hedge accounting is discontinued. Cash flow hedge When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss. (ii) Separable embedded derivatives Embedded derivatives are separated from the host contract and accounted for separately only if the following criteria have been met: (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract; (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and (c) the hybrid (combined) instrument is not measured at fair value with changes in fair value recognized in profit or loss. Changes in the fair value of separable embedded derivatives are recognized immediately in profit or loss. (iii) Other derivative financial instruments Changes in the fair value of other derivative financial instrument not designated as a hedging instrument are recognized immediately in profit or loss. |
Impairment of financial assets | (7) Impairment of financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that a financial asset is impaired includes following loss events: • significant financial difficulty of the issuer or obligor; • a breach of contract, such as default or delinquency in interest or principal payments; • the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; • it becoming probable that the borrower will enter bankruptcy or other financial reorganization; • the disappearance of an active market for that financial asset because of financial difficulties; or • observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. If financial assets have objective evidence that they are impaired, impairment losses are measured and recognized. (i) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. The Group can recognize impairment losses directly or by establishing an allowance account. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the previously recognized impairment loss is reversed either directly or by adjusting an allowance account. (ii) Financial assets carried at cost If there is objective evidence that an impairment loss has occurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. (iii) Available-for-sale When a decline in the fair value of an available-for-sale available-for-sale available-for-sale |
Property and equipment | (8) Property and equipment Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Subsequent to initial recognition, an item of property and equipment is carried at its cost less any accumulated depreciation and any accumulated impairment losses. Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Property and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. A component that is significant compared to the total cost of property and equipment is depreciated over its separate useful life. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment and are recognized as other non-operating The estimated useful lives of the Group’s property and equipment are as follows: Useful lives (years) Buildings and structures 15 ~ 40 Machinery 3 ~ 15 Other property and equipment 2 ~ 10 Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate. |
Borrowing costs | (9) Borrowing costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. Financial assets are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period do not exceed the amount of borrowing costs incurred during that period. |
Intangible assets | (10) Intangible assets Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses. Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, club memberships are expected to be available for use as there are no foreseeable limits to the periods. This intangible asset is determined as having indefinite useful lives and not amortized. The estimated useful lives of the Group’s intangible assets are as follows: Useful lives (years) Frequency usage rights 5 ~ 13 Land usage rights 5 Industrial rights 5, 10 Development costs 3 ~ 5 Facility usage rights 10, 20 Customer relations 3 ~ 7 Other 3 ~ 20 Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life assessments for those assets. Changes are accounted for as changes in accounting estimates. Expenditures on research activities are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. |
Government grants | (11) Government grants Government grants are not recognized unless there is reasonable assurance that the Group will comply with the grant’s conditions and that the grant will be received. (i) Grants related to assets Government grants whose primary condition is that the Group purchases, constructs or otherwise acquires a long-term asset are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduction to depreciation expense. (ii) Grants related to income Government grants which are intended to compensate the Group for expenses incurred are deducted from the related expenses. |
Investment property | (12) Investment property Property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses. Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Investment property except for land, are depreciated on a straight-line basis over 15~40 years as estimated useful lives. Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate. |
Impairment of non-financial assets | (13) Impairment of non-financial The carrying amounts of the Group’s non-financial non-current The Group estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax An impairment loss is recognized in profit or loss to the extent the carrying amount of the asset exceeds its recoverable amount. Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies arising from the business acquired. Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Leases | (14) Leases The Group classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Group assumes substantially all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases. (i) Finance leases At the commencement of the lease term, the Group recognizes as finance assets and finance liabilities in its consolidated statement of financial position, the lower amount of the fair value of the leased property and the present value of the minimum lease payments, each determined at the inception of the lease. Any initial direct costs are added to the amount recognized as an asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred. The depreciable amount of a leased asset is allocated to each accounting period during the period of expected use on a systematic basis consistent with the depreciation policy the Group adopts for depreciable assets that are owned. If there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is fully depreciated over the shorter of the lease term and its useful life. The Group reviews to determine whether the leased assets are impaired at the reporting date. (ii) Operating leases Leases where the lessor retains a significant portion of the risks and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognized in profit or loss on a straight-line basis over the period of the lease. (iii) Determining whether an arrangement contains a lease Determining whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires an assessment of whether fulfillment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset. At inception or reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a financial lease that it is impracticable to separate the payments reliably, the Group recognizes an asset and a liability at an amount equal to the fair value of the underlying asset that was identified as the subject of the lease. Subsequently, the liability is reduced as payments are made and an imputed finance charge on the liability is recognized using the Group’s incremental borrowing rate of interest. |
Non-current assets held for sale | (15) Non-current Non-current non-current Impairment of Assets A non-current |
Non-derivative financial liabilities | (16) Non-derivative The Group classifies non-derivative (i) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such upon initial recognition. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issue of the financial liability are recognized in profit or loss as incurred. (ii) Other financial liabilities Non-derivative The Group derecognizes a financial liability from the consolidated statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires). |
Employee benefits | (17) Employee benefits (i) Short-term employee benefits Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service. (ii) Other long-term employee benefits Other long-term employee benefits include employee benefits that are settled beyond 12 months after the end of the period in which the employees render the related service. The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise. (iii) Retirement benefits: defined contribution plans When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Group recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments or a cash refund. (iv) Retirement benefits: defined benefit plans At the end of reporting period, defined benefits liabilities relating to defined benefit plans are recognized at present value of defined benefit obligations net of fair value of plan assets. The calculation is performed annually by an independent actuary using the projected unit credit method. When the fair value of plan assets exceeds the present value of the defined benefit obligation, the Group recognizes an asset, to the extent of the present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Group determines net interests on net defined benefit liability (asset) by multiplying discount rate determined at the beginning of the annual reporting period and considers changes in net defined benefit liability (asset) from contributions and benefit payments. Net interest costs and other costs relating to the defined benefit plan are recognized through profit or loss. When the plan amendment or curtailment occurs, gains or losses on amendment or curtailment in benefits for the past service provided are recognized through profit or loss. The Group recognizes gain or loss on a settlement when the settlement of defined benefit plan occurs. (v) Termination benefits The Group recognizes a liability and expense for termination benefits at the earlier of the period when the Group can no longer withdraw the offer of those benefits and the period when the Group recognizes costs for a restructuring that involves the payment of termination benefits. If benefits are payable more than 12 months after the reporting period, they are discounted to their present value. |
Provisions | (18) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement is recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. A provision is used only for expenditures for which the provision was originally recognized. |
Transactions in foreign currencies | (19) Transactions in foreign currencies (i) Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate. Non-monetary Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of available-for-sale (ii) Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus they are expressed in the functional currency of the foreign operation and translated at the closing rate at the reporting date. When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling |
Share capital | (20) Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares and share options are recognized as a deduction from equity, net of any tax effects. When the Group repurchases its own shares, the amount of the consideration paid is recognized as a deduction from equity and classified as treasury shares. The profits or losses from the purchase, disposal, reissue, or retirement of treasury shares are directly recognized in equity being as transaction with owners. |
Hybrid bond | (21) Hybrid bond The Group recognizes a financial instrument issued by the Group as an equity instrument if it does not include contractual obligation to deliver financial assets including cash to the counter party. |
Share-based Payment | (22) Share-based Payment For equity-settled share-based payment transaction, if the fair value of the goods or services received cannot be reliably estimated, the Group measures their value indirectly by reference to the fair value of the equity instruments granted. Related expense, with a corresponding increase in capital surplus and others is recognized over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market non-market |
Revenue | (23) Revenue Revenue from the sale of goods, rendering of services or use of the Group assets is measured at the fair value of the consideration received or receivable. Returns, trade discounts and volume rebates are recognized as a reduction of revenue. When two or more revenue generating activities or deliverables are sold under a single arrangement, each deliverable that is considered to be a separate unit of account is accounted for separately. The allocation of consideration from a revenue arrangement to its separate units of account is based on the relative fair values of each unit. (i) Services rendered Revenue from cellular services consists of revenue from basic charges, voice charges, data charges, data-roaming services and interconnection charges. Such revenues are recognized as services are performed. Revenue from fixed-line services includes domestic and long distance call charges, international phone connection charges, and broadband internet services. Such revenues are recognized as the related services are performed. Revenue from other services rendered is recognized in profit or loss in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed. (ii) Goods sold Revenue is recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. (iii) Commission revenue In connection with the commission revenue from e-commerce • The Group does not bear inventory risk or have responsibility for the delivery goods; • All of the credit risks are borne by suppliers of goods though the Group collects the proceeds from end customers on behalf of the suppliers; and • The Group has no latitude in establishing prices regarding goods sold in e-commerce. (iv) Customer loyalty programs For customer loyalty programs, the fair value of the consideration received or receivable in respect of the initial sale is allocated between the award credits and the other components of the sale. The amount allocated to the award credits is estimated by reference to the fair value of the services to be provided with respect to the redeemable award credits. The fair value of the services to be provided with respect to the redeemable portion of the award credits granted to the customers in accordance with customer loyalty programs is estimated taking into account the expected redemption rate and timing of the expected redemption. Considerations allocated to the award credits are deferred and revenue is recognized when the award credits are recovered and the Group performs its obligation to provide the service. The amount of revenue recognized is based on the relative size of the total award credits that are expected to be redeemed and the redeemed award credits in exchange for services. |
Operating profit | (24) Operating profit Operating profit is the result generated from the continuing principal revenue producing activities of the Group as well as other income and expenses related to operating activities. Operating profit excludes net finance costs, share of profit of equity accounted investees and income taxes. |
Finance income and finance costs | (25) Finance income and finance costs Finance income comprises interest income on funds invested (including available-for-sale available-for-sale Finance costs comprise interest expense on borrowings, changes in fair value of financial assets at fair value through profit or loss, and losses on hedging instruments that are recognized in profit or loss. Interest expense on borrowings and debentures are recognized in profit or loss using the effective interest rate method. |
Income taxes | (26) Income taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. The Group pays income tax in accordance with the tax-consolidation (i) Current tax In accordance with the tax-consolidation non-taxable non-deductible (ii) Deferred tax Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The Group recognizes a deferred tax liability for all taxable temporary differences, except for the difference associated with investments in subsidiaries and associates that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. A deferred tax asset is recognized for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. Future taxable profit is dependent on the reversal of taxable temporary differences. If there are insufficient taxable temporary differences to recognize the deferred tax asset, the business plan of the Group and the reversal of existing temporary differences are considered in determining the future taxable profit. The Group reviews the carrying amount of a deferred tax asset at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they are intended to be settled current tax liabilities and assets on a net basis. Income tax expense in relation to dividend payments is recognized when liabilities relating to the dividend payments are recognized. |
Earnings per share | (27) Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees, if any. |
Standards issued but not yet effective | (28) Standards issued but not yet effective The following new standards are effective for annual periods beginning after January 1, 2017 and earlier application is permitted; however, the Group has not early adopted the following new standards in preparing these financial statements. 1) IFRS 9, Financial Instruments IFRS 9, published in July 2014 which will replace the IAS 39 Financial Instruments: Recognition and Measurement IFRS 9 will be applied retrospectively with exemption allowing the Group not to restate comparative information for prior periods with respect to classification and measurement including impairment changes. The Group will recognize any difference on the measurement of financial assets and liabilities in the opening balance of retained earnings of the year beginning January 1, 2018. In the case of hedge accounting, the prospective application is allowed except for those specified in IFRS 9 such as accounting for the time value of options and the forward element of forward contracts which requires retrospective application. Key features of IFRS 9 includes new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics, impairment model based on changes in expected credit losses, and new approach to hedge qualification and methods for assessing hedge effectiveness. To ensure smooth implementation of IFRS 9, the Group needs to assess the financial impact of adopting IFRS 9, to formulate the accounting policy, and to design, implement and enhance the accounting system and related controls. The expected quantitative impact of adopting IFRS 9 on the Group’s financial statements cannot be reliably estimated because it will be dependent on the financial instruments that the Group holds and economic conditions at that time as well as accounting elections and judgments that it will make in the future. Based on the circumstances and information available as of December 31, 2017, the Group preliminary assessed the financial impact on its consolidated financial statements resulting from the adoption of IFRS 9. The results of the preliminary assessment are as follows. The results are subject to change according to additional information available in subsequent period. i) Classification and measurement of financial assets Classification of financial assets under IFRS 9 is driven by the entity’s business model for managing financial assets and their contractual cash flows. This contains three principal classification categories: financial assets measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). Derivatives embedded in contracts where the host is a financial asset are never bifurcated. Instead, the hybrid financial instrument as a whole is assessed for classification. Details of the classification based on business models and contractual cash flows are as follows: Contractual cash flow characteristics Business model assessment(*1) Solely payments of principal and interest Others Hold to collect contractual cash flows Amortized cost(*2) FVTPL-measured at fair value(*3) Hold to collect contractual cash flows and sell financial assets FVOCI- measured at fair value(*2) Hold to sell financial assets and others FVTPL-measured at fair value (*1) The business model is expected to be assessed at portfolio level. (*2) To eliminate or significantly reduce the accounting mismatch, the Group may irrevocably designate a financial asset as measured at FVTPL using the fair value option at initial recognition. (*3) Equity instruments that are not held for trading may be irrevocably designated as FVOCI using the fair value option. This election will be made on an investment-by-investment As new classification requirements for financial assets under IFRS 9 are more stringent than requirements under IAS 39, the adoption of the new standard may result in increase in financial assets designated as FVTPL and higher volatility in profit or loss of the Group. As of December 31, 2017, the Group’s financial assets consist of ₩6,176,575 million of loans and receivables, ₩934,390 million of available-for-sale A financial asset is measured at amortized cost under IFRS 9 if the asset is held by the Group to collect its contractual cash flows and the asset’s contractual cash flows represent solely payments of principal and interest. As of December 31, 2017, the Group has ₩6,176,575 million of loans and receivables measured at amortized cost. Based on preliminary assessment, most of the Group’s loans and receivables are held to collect their contractual cash flows and the asset’s contractual cash flows represent solely payments of principal and interest. Though some are held for collecting the asset’s contractual cash flows and sale, management does not expect this to have a significant impact due to the short term nature of the receivables. A financial asset is measured at FVOCI under IFRS 9 if the objective of the business model is achieved both by collecting contractual cash flows and selling financial assets; and the asset’s contractual cash flows represent solely payments of principal and interest. As of December 31, 2017, the Group has ₩19,928 million of debt instruments classified as available-for-sale Most of the debt instruments held by the Group classified as available-for-sale Under IFRS 9, equity instruments that are not held for trading may be irrevocably designated as FVOCI on initial recognition with no recycling of amounts from OCI to profit and loss. As of December 31, 2017, the Group has ₩914,462 million of available-for-sale As the Group plans to classify the equity instruments with long-term investment purposes to financial assets measured at FVOCI under IFRS 9, the Group’s preliminary assessment did not indicate any material impact on the Group’s consolidated financial statements except no recycling of amounts from OCI to profit and loss is allowed. All other financial assets are measured at FVTPL. As of December 31, 2017, the Group has ₩97,003 million of debt instruments classified as financial assets at FVTPL. Most of the financial assets classified as FVTPL under IAS 39 of the Group are expected to be designated as financial assets measured at FVTPL under IFRS 9. Therefore, the Group’s preliminary assessment did not indicate any material impact on the Group’s consolidated financial statements upon adoption of IFRS 9 as at January 1, 2018. ii) Classification and measurement of financial liabilities Under IFRS 9, for the financial liabilities designated as FVTPL using the fair value option, the element of gains or losses attributable to changes in the own credit risk should normally be recognized in OCI, with the remainder recognized in profit or loss. These amounts recognized in OCI are not recycled to profit or loss even when the liability is derecognized. However, if presentation of the fair value change in respect of the liability’s credit risk in OCI results in or enlarges an accounting mismatch in profit or loss, gains and losses are entirely presented in profit or loss. Adoption of IFRS 9 may result in decrease in profit or loss, since the amount of fair value changes that is attributable to changes in the credit risk of the liability will be presented in OCI. As of December 31, 2017, the Group’s total financial liability amounts to ₩12,725,704 million, among which the financial liabilities designated as FVTPL using fair value option amount to ₩60,278 million. As of December 31, 2017, most of the financial liabilities designated as FVTPL of the Group have short-term maturities with no significant changes in their credit risks. The Group’s preliminary assessment did not indicate any material impact on the Group’s consolidated financial statements upon adoption of IFRS 9 as of January 1, 2018. iii) Impairment: financial assets and contract assets The current impairment requirements under IAS 39 are based on an ‘incurred loss model’, where the impairment exists if there is objective evidence as a result of one or more events that occurred after the initial recognition of an asset. However, IFRS 9 replaces the incurred loss model in IAS 39 with an ‘expected credit loss model’ which applies to debt instruments measured at amortized cost or at fair value through other comprehensive income. Under IFRS 9, the Group should recognize a loss allowance or provision at an amount equal to 12-month Stages(*1) Loss allowances Stage 1 No significant increase in credit risk since initial recognition(*2) Loss allowances are determined for the amount of the expected credit losses that result from default events that are possible within 12 months after the reporting date. Stage 2 Significant increase in credit risk since initial recognition Loss allowances are determined for the amount of the expected credit losses that result from all possible default events over the expected life of the financial instrument. Stage 3 Objective evidence of credit risk impairment (*1) Under IFRS 15, Revenue from Contracts with Customers (*2) The Group may determine that a financial asset’s credit risk has not increased significantly if the asset has low credit risk at the reporting date. IFRS 9 allows the Group to only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets at the reporting date. As of December 31, 2017, the Group has ₩6,176,575 million of debt instrument financial assets measured at amortized cost and ₩362,171 million as loss allowances for these assets. The Group’s preliminary assessment did not indicate any material impact on the Group’s consolidated financial statements upon adoption of IFRS 9 on January 1, 2018. iv) Hedge accounting IFRS 9 maintains the mechanics of hedge accounting from those in IAS 39. However, IFRS 9 replaces existing rule-based requirements under IAS 39 that are complex and difficult to apply with principle based requirement focusing more on the Group’s risk management purposes and procedures. Under IAS 9, more hedging instruments and hedged items are permitted and 80%-125% By complying with the hedging rules in IFRS 9, the Group may apply hedge accounting for transactions that currently do not meet the hedging criteria under IAS 39 thereby reducing volatility in profit or loss. As of December 31, 2017, the Group recognized the total amount of ₩2,026,434 million as hedged liabilities that applied hedge accounting and changes in fair value of cash flow hedge in the amount of ₩73,828 million was recognized in OCI for the year ended December 31, 2017. Upon initial application of IFRS 9, the Group may choose as its accounting policy to continue to apply hedge accounting requirements under IAS 39 instead of the requirements in IFRS 9. The Group is yet to decide on its accounting policy whether to continuously apply the hedge accounting requirements of IAS 39 instead of the requirements in IFRS 9 when initially applying IFRS 9. The Group designates derivatives such as currency swaps as hedging instruments to hedge the risk of variability in cash flows associated with the foreign currency debentures and borrowings. As the Group’s hedging instruments as of December 31, 2017 satisfy the hedge requirements of retrospective testing (80~125%) under IAS 39, the adoption of IFRS 9 is not expected to have material impact on the Group’s consolidated financial statements. 2) IFRS 15, Revenue from Contracts with Customers IFRS 15, Revenue from Contracts with Customers Revenue Construction Contracts Revenue: Barter Transactions Involving Advertising Services Customer Loyalty Programs, IFRIC 15, Agreements for the Construction of Real Estate, and IFRIC 18, Transfers of Assets from Customers. The Group plans to adopt IFRS 15 on January 1, 2018. The Group plans to apply IFRS 15 by recognizing the cumulative effect of initially applying the IFRS 15 as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) of the year beginning January 1, 2018. The Group elected to apply IFRS 15 retrospectively only to contracts that are not completed contracts at the date of initial application (January 1, 2018) using the transition method permitted by IFRS 15. IAS 18 provides separate revenue recognition criteria by transaction type which include sale of goods, rendering of services, and use of entity assets by others yielding interest, royalties and dividends. However, IFRS 15 introduces a five-step model for revenue recognition that focuses on the ‘transfer of control’ rather than the ‘transfer of risks and rewards’. The steps in five-step model are as follows: • identification of the contract with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when (or as) the entity satisfies a performance obligation. The Group performed evaluation and identified necessary changes to its accounting system and related controls based on the understanding of the revenue stream of the Group with the assistance of external information technology and accounting specialists. The Group is assessing the financial impact of the adoption of IFRS 15 on its consolidated financial statements and plans to complete the assessment by March 31, 2018. Based on the circumstances and information available as of December 31, 2017, the Group preliminarily assessed the financial impact on its consolidated financial statements resulting from the adoption of IFRS 15. The results of the preliminary assessment are as follows. The results are subject to change according to the additional information available to use in subsequent periods. i) Identification of performance obligations in the contract A substantial portion of the Group’s revenues are generated from provision of wireless telecommunications services. IFRS 15 requires the Group to evaluate goods or services promised to customers to determine if they are performance obligations other than wireless telecommunications service that should be accounted for separately. The amount and timing of revenue recognition under IFRS 15 may be different from those under IAS 18 depending on the conclusion over the existence of separately identifiable performance obligations and the timing of satisfying each performance obligation. In the case that the Group provides the wireless telecommunications services and a handset to one customer, the Group will allocate considerations from the customer between handset sale revenue and wireless telecommunications service revenue. The handset sales revenue is recognized when handset is sold and the wireless telecommunications service revenue is recognized as revenue over the period of the contract term as stated in the subscription contract. ii) Allocate the transaction price to the separate performance obligations In accordance with IFRS 15, the Group should allocate the transaction price to each performance obligation in a contract in proportion to their stand-alone selling price. The Group plans to use adjusted market assessment method for estimating the stand-alone selling price. However, in some circumstances, ‘expected cost plus a margin’ approach will be used. The Group is in the progress of assessing the financial impact of allocating the transaction price to each performance obligation in a contract in proportion to their stand-alone selling price for the case where the Group provides the wireless telecommunications services and handset to one customer. Based on the preliminary assessment, the Group expects that wireless telecommunications service revenue will be decreased, while handset sale revenue will be increased upon adoption of IFRS 15. iii) Incremental costs to acquire a contract The Group has exclusive contracts with its sales agents to sell the Group’s wireless telecommunications services to subscribers. These agents receive commissions depending on the number of subscribers newly added and retained. The commissions paid to the agents constitute a significant portion of the Group’s operating expenses. Currently, the portion of these commissions that would not have been incurred if there have been no binding contracts with the subscribers are expensed. Under IFRS 15, for the Group’s incremental costs to acquire a subscription contract, the Group expects to capitalize such amounts and amortized over the expected subscription period estimated based on historical experience. However, as a practical expedient, the Group plans to expense the incremental cost as incurred if the amortization period of the contract acquisition and fulfillment cost is considered to be not longer than one year. As of December 31, 2017, the Group is assessing the impact of capitalizing the incremental costs associated with obtaining customer contracts. Based on the preliminary assessment, the Group expects commission expenses to decrease, while corresponding assets capitalized (incremental costs of obtaining a contract) and amortization expenses to be recognized and incurred, respectively. 3) IFRS 16, Leases IFRS 16, published in January 2016 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. IFRS16 replaces existing leases guidance including IAS 17, Leases Determining whether an Arrangement contains a Lease Operating Leases — Incentives Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16, at the inception date of a contract and the first implementation of the standard, requires the Group to determine whether a contract is, or contains, a lease unless the Group applies the practical expedient for the existing lease contract at the date of adoption of the standard. When accounting for lease, lessee and lessor should account for each lease component within the contract as a lease separately from non-lease Lessee recognizes a right-of-use non-lease non-lease Lessor accounting remains similar to the current standard IAS 17. For a sale and leaseback arrangement, IFRS 16 requires the Group to apply the requirements for determining when a performance obligation is satisfied in IFRS 15 to determine whether the transfer of an asset is accounted for as a sale of that asset. However, sale and leaseback arrangements entered into before the adoption of IFRS 16 may not be reassessed. i) Lease accounting for lessees As a lessee, the Group can either apply the IFRS 16 using a full retrospective approach; or modified retrospective approach. The full retrospective approach requires the Group to retrospectively apply the new standard to each prior reporting period presented, while modified retrospective approach requires the lessee to recognize the cumulative effect of initial application at the date of initial application of the new leases standard. ii) Lease accounting for lessors In case where the Group is an intermediate lessor, the Group should reassess subleases that were classified as operating leases applying IAS 17 and are ongoing at the date of initial application, whether each sublease should be classified as an operating lease or a finance lease applying IFRS 16. For subleases that were classified as operating leases applying IAS 17 but finance leases applying IFRS 16, the Group should accounts for such sublease as a new finance lease entered into at the date of initial application of IFRS 16. The Group plans to update its accounting system and related controls and complete the assessment of impact on its consolidated financial statements resulting from the adoption of IFRS 16 by December 31, 2018. |
Reporting Entity (Tables)
Reporting Entity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Total issued shares held by shareholders | The Parent Company’s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of December 31, 2017, the Parent Company’s total issued shares are held by the following shareholders: Number of Percentage of SK Holdings Co., Ltd. 20,363,452 25.22 National Pension Service 7,392,350 9.16 Institutional investors and other minority shareholders 42,853,358 53.07 Treasury shares 10,136,551 12.55 Total number of shares 80,745,711 100.00 |
List of subsidiaries | The list of subsidiaries as of December 31, 2017 and 2016 is as follows: Ownership (%)(*1) Subsidiary Location Primary business Dec. 31, Dec. 31, Subsidiaries owned by the Parent Company SK Telink Co., Ltd.(*2) Korea Telecommunication and MVNO service 100.0 85.9 SK Communications Co., Ltd.(*3) Korea Internet website services 100.0 64.5 SK Broadband Co., Ltd Korea Telecommunication services 100.0 100.0 PS&Marketing Corporation Korea Communications device retail business 100.0 100.0 SERVICEACE Co., Ltd. Korea Customer center management service 100.0 100.0 SERVICE TOP Co., Ltd. Korea Customer center management service 100.0 100.0 Network O&S Co., Ltd. Korea Base station maintenance service 100.0 100.0 SK Planet Co., Ltd. Korea Telecommunication service 98.1 98.1 IRIVER LIMITED(*4, 5) Korea Manufacturing digital audio players and other portable media devices. 45.9 48.9 SK Telecom China Holdings Co., Ltd. China Investment 100.0 100.0 SK Global Healthcare Business Group, Ltd. Hong Kong Investment 100.0 100.0 SKT Vietnam PTE. Ltd. Singapore Telecommunication service 73.3 73.3 SKT Americas, Inc. USA Information gathering and consulting 100.0 100.0 YTK Investment Ltd. Cayman Islands Investment association 100.0 100.0 Atlas Investment Cayman Islands Investment association 100.0 100.0 Entrix Co., Ltd.(*6) Korea Cloud streaming services — 100.0 SK techx Co., Ltd. Korea System software development and supply 100.0 100.0 One Store Co., Ltd. Korea Telecommunication services 65.5 65.5 Subsidiaries owned by SK Planet Co., Ltd. SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) Korea Data base and internet website service 100.0 100.0 SK Planet Japan, K. K.(*5) Japan Digital contents sourcing service 79.5 100.0 SK Planet Global PTE. Ltd. Singapore Digital contents sourcing service 100.0 100.0 SKP GLOBAL HOLDINGS PTE. LTD. Singapore Investment 100.0 100.0 SKP America LLC. USA Digital contents sourcing service 100.0 100.0 shopkick Management Company, Inc. USA Investment 100.0 100.0 shopkick, Inc. USA Reward points-based in-store 100.0 100.0 Planet11 E-commerce India Electronic commerce platform service — 99.0 11street (Thailand) Co., Ltd. Thailand Electronic commerce 100.0 100.0 Hello Nature Ltd. Korea Retail of agro-fisheries and livestock 100.0 100.0 Subsidiaries owned by IRIVER LIMITED iriver Enterprise Ltd. Hong Kong Management of Chinese subsidiary 100.0 100.0 iriver Inc. USA Marketing and sales in North America 100.0 100.0 iriver China Co., Ltd. China Sales and manufacturing MP3,4 in China 100.0 100.0 Dongguan iriver Electronics Co., Ltd. China Sales and manufacturing e-book 100.0 100.0 groovers JP Ltd. Japan Digital music contents sourcing and distribution service 100.0 100.0 S.M. LIFE DESIGN COMPANY JAPAN INC.(*6) Japan Selling of goods in Japan 100.0 — S.M. Mobile Communications JAPAN Inc.(*6) Japan Digital contents service 100.0 — Subsidiaries owned by SK Telink Co., Ltd. NSOK Co., Ltd. (formerly, Neosnetworks Co., Ltd.)(*7) Korea Guarding of facilities 100.0 100.0 Subsidiaries owned by SK techx Co., Ltd. K-net Korea Capital investing in startups 59.0 59.0 Subsidiaries owned by SK Broadband Co., Ltd. Home & Service Co., Ltd.(*6) Korea Operation of information and communication facility 100.0 — SK stoa Co., Ltd.(*6) Korea Other telecommunication retail business 100.0 — Others(*8) SK Telecom Innovation Fund, L.P. USA Investment 100.0 100.0 SK Telecom China Fund I L.P. Cayman Islands Investment 100.0 100.0 Stonebridge Cinema Fund(*6) Korea Capital investing in startups — 60.0 (*1) The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or subsidiaries of the Parent Company. (*2) On September 28, 2017, the board of directors of the Parent Company resolved to acquire the shares of SK Telink Co., Ltd. held by the non-controlling (*3) On November 24, 2016, the board of directors of the Parent Company resolved to acquire all of the shares of SK Communications Co., Ltd. held by the non-controlling (*4) Although the Group has less than 50% of the voting rights of IRIVER LIMITED, the Group is considered to have control over IRIVER LIMITED since the Group holds significantly more voting rights than any other vote holder or organized group of vote holders, and the other shareholdings are widely dispersed. (*5) The ownership interest changed due to the non-proportional (*6) Details of changes in consolidation scope for the year ended December 31, 2017 are presented in Note 1-(4). (*7) During the year ended December 31, 2017, Neosnetworks Co., Ltd. changed its name to NSOK Co., Ltd. (*8) Others are owned together by Atlas Investment and one other subsidiary of the Parent Company. |
Condensed financial information of the significant subsidiaries | Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2017 is as follows: (In millions of won) As of December 31, 2017 2017 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 455,685 104,727 350,958 389,944 32,728 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 113,515 62,795 50,720 193,256 1,249 SK Communications Co., Ltd. 90,923 28,410 62,513 47,546 (35,454 ) SK Broadband Co., Ltd. 3,802,349 2,616,317 1,186,032 3,050,083 32,030 K-net 250,747 35,900 214,847 — 196,250 PS&Marketing Corporation 506,883 288,881 218,002 1,766,142 391 SERVICEACE Co., Ltd. 77,681 45,501 32,180 197,408 2,599 SERVICE TOP Co., Ltd. 65,406 41,860 23,546 186,117 3,309 Network O&S Co., Ltd. 87,000 45,248 41,752 255,841 6,283 SK Planet Co., Ltd. 1,534,866 920,677 614,189 1,082,685 (513,667 ) IRIVER LIMITED(*) 130,878 17,204 113,674 69,452 (14,092 ) SKP America LLC. 412,251 — 412,251 — (57 ) SK techx Co., Ltd. 237,700 41,561 196,139 195,948 26,827 One Store Co., Ltd. 104,891 39,874 65,017 115,596 (27,254 ) Home & Service Co., Ltd. 83,698 38,350 45,348 141,739 11 shopkick Management Company, Inc. 338,650 — 338,650 — (238 ) shopkick, Inc. 37,336 32,219 5,117 48,836 (25,249 ) (*) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and six other subsidiaries of IRIVER LIMITED. Information for the other subsidiaries in the above summary is based on their separate financial statements. Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2016 is as follows: (In millions of won) As of December 31, 2016 2016 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 440,956 122,741 318,215 406,930 61,585 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 107,768 56,596 51,172 173,816 4,958 SK Communications Co., Ltd. 128,233 31,592 96,641 58,154 (20,411 ) SK Broadband Co., Ltd. 3,523,494 2,376,429 1,147,065 2,942,976 21,526 PS&Marketing Corporation 546,803 328,846 217,957 1,679,735 11,908 SERVICEACE Co., Ltd. 67,735 40,014 27,721 199,828 3,605 SERVICE TOP Co., Ltd. 59,004 39,121 19,883 186,740 3,971 Network O&S Co., Ltd. 69,774 35,798 33,976 218,917 3,755 SK Planet Co., Ltd.(*1) 1,935,663 834,151 1,101,512 1,177,323 (30,959 ) IRIVER LIMITED(*2) 50,075 11,941 38,134 52,328 (9,987 ) SKP America LLC. 439,209 — 439,209 — 1,226 SK techx Co., Ltd. 212,819 52,563 160,256 193,396 28,213 One Store Co., Ltd. 134,207 41,738 92,469 106,809 (22,161 ) shopkick Management Company, Inc. 354,627 — 354,627 — (85 ) shopkick, Inc. 37,947 34,024 3,923 45,876 (27,149 ) (*1) The separate financial information of SK Planet Co., Ltd. includes pre-merger (*2) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and five other subsidiaries of IRIVER LIMITED. Condensed financial information of the significant subsidiaries as of and for the year ended December 31, 2015 is as follows: (In millions of won) As of December 31, 2015 2015 Subsidiary Total assets Total Total Revenue Profit SK Telink Co., Ltd. ₩ 309,955 113,878 196,077 431,368 55,781 SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) 89,452 42,414 47,038 143,255 5,549 SK Communications Co., Ltd. 152,496 35,014 117,482 80,147 (14,826 ) SK Broadband Co., Ltd. 3,291,707 2,170,484 1,121,223 2,731,344 10,832 PS&Marketing Corporation 509,580 300,364 209,216 1,791,944 4,835 SERVICEACE Co., Ltd. 65,424 34,240 31,184 206,338 2,778 SERVICE TOP Co., Ltd. 61,897 38,482 23,415 197,092 4,396 Network O&S Co., Ltd. 77,426 48,069 29,357 210,676 6,466 SK Planet Co., Ltd. 2,406,988 784,631 1,622,357 1,624,630 (75,111 ) IRIVER LIMITED(*) 60,434 12,377 48,057 55,637 635 SKP America LLC. 380,141 — 380,141 — 791 Entrix Co., Ltd. 30,876 3,186 27,690 4,895 (1,826 ) shopkick Management Company, Inc. 306,248 7 306,241 7 (2,455 ) shopkick, Inc. 25,388 32,243 (6,855 ) 33,851 (52,390 ) (*) The condensed financial information of IRIVER LIMITED is consolidated financial information including iriver Enterprise Ltd. and five other subsidiaries of IRIVER LIMITED. (4) Changes in subsidiaries The list of subsidiaries that were newly included in consolidation during the year ended December 31, 2017 is as follows: Subsidiary Reason S.M. LIFE DESIGN COMPANY JAPAN INC. (Refer to Note10) Acquired by IRIVER LIMITED S.M. Mobile Communications JAPAN Inc. (Refer to Note10) Acquired by IRIVER LIMITED Home & Service Co., Ltd. Established by SK Boradband Co., Ltd. SK stoa Co., Ltd. Established by SK Boradband Co., Ltd. The list of subsidiaries that were excluded from consolidation during the year ended December 31, 2017 is as follows: Subsidiary Reason Entrix Co., Ltd. Merged into SK techx Co., Ltd. during the year ended December 31, 2017. Planet11 E-commerce Disposed during the year ended December 31, 2017. Stonebridge Cinema Fund Liquidated during the year ended December 31, 2017. |
Information of significant non-controlling interests of the group | (5) The information of significant non-controlling non-controlling (In millions of won) K-net Culture and IRIVER LIMITED One Store Co., Ltd. Ownership of non-controlling 41.00 54.10 34.46 As of December 31, 2017 Current assets ₩ 625 74,873 76,810 Non-current 250,122 56,005 28,081 Current liabilities (35,900 ) (9,563 ) (38,547 ) Non-current — (7,641 ) (1,327 ) Net assets 214,847 113,674 65,017 Carrying amount of non-controlling 88,087 63,382 22,405 2017 Revenue ₩ — 69,452 115,596 Profit (loss) for the year 196,250 (14,092 ) (27,254 ) Total comprehensive profit (loss) 201,693 (14,278 ) (27,452 ) Profit (loss) attributable to non-controlling 80,463 (7,438 ) (9,392 ) Net cash provided by (used in) operating activities ₩ (7 ) (7,553 ) 13,912 Net cash used in investing activities (600 ) (45,002 ) (2,000 ) Net cash provided by (used in) financing activities — 64,571 (7 ) Net increase (decrease) in cash and cash equivalents (607 ) 12,016 11,905 (In millions of won) SK Communications Co., Ltd. One Store Co., Ltd. Ownership of non-controlling 35.46 34.46 As of December 31, 2016 Current assets ₩ 81,806 90,414 Non-current 46,427 43,793 Current liabilities (30,098 ) (40,969 ) Non-current (1,494 ) (769 ) Net assets 96,641 92,469 Carrying amount of non-controlling 34,265 31,863 2016 Revenue ₩ 58,154 106,809 Loss for the year 20,411 22,161 Total comprehensive loss 20,841 22,402 Loss attributable to non-controlling 7,240 6,772 Net cash used in operating activities ₩ (4,891 ) (4,447 ) Net cash provided by (used in) investing activities 3,625 (20,796 ) Net cash provided by financing activities — 51,426 Net increase(decrease) in cash and cash equivalents (1,266 ) 26,183 (In millions of won) SK Communications Co., Ltd. Ownership of non-controlling 35.46 As of December 31, 2015 Current assets ₩ 95,662 Non-current 56,834 Current liabilities (33,306 ) Non-current (1,708 ) Net assets 117,482 Carrying amount of non-controlling 41,659 2015 Revenue ₩ 80,147 Loss for the period 14,826 Total comprehensive loss 16,698 Loss attributable to non-controlling 5,254 Net cash used in operating activities ₩ (2,706 ) Net cash provided by investing activities 8,723 Net cash provided by financing activities — Net increase in cash and cash equivalents 6,017 |
Significant Accounting Polici48
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Estimated useful lives of the Group's property and equipment | The estimated useful lives of the Group’s property and equipment are as follows: Useful lives (years) Buildings and structures 15 ~ 40 Machinery 3 ~ 15 Other property and equipment 2 ~ 10 |
Estimated useful lives of the Group's intangible assets | The estimated useful lives of the Group’s intangible assets are as follows: Useful lives (years) Frequency usage rights 5 ~ 13 Land usage rights 5 Industrial rights 5, 10 Development costs 3 ~ 5 Facility usage rights 10, 20 Customer relations 3 ~ 7 Other 3 ~ 20 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Segment information | (1) Segment information for the years ended December 31, 2017, 2016 and 2015 is as follows: (In millions of won) 2017 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,873,543 3,586,887 1,091,903 788,836 20,341,169 (2,821,156 ) 17,520,013 Inter-segment revenue 1,611,408 862,736 47,732 299,280 2,821,156 (2,821,156 ) — External revenue 13,262,135 2,724,151 1,044,171 489,556 17,520,013 — 17,520,013 Depreciation and amortization 2,390,016 592,877 54,486 60,087 3,097,466 — 3,097,466 Operating profit (loss) 1,714,078 167,515 (267,829 ) (77,138 ) 1,536,626 (312,054 ) 1,224,572 Gain relating to investments in subsidiaries, associates and joint ventures, net 2,245,732 Finance income 366,561 Finance costs (433,616 ) Profit before income tax 3,403,249 (In millions of won) 2016 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,635,720 3,349,905 1,177,323 726,374 19,889,322 (2,797,506 ) 17,091,816 Inter-segment revenue 1,630,811 698,712 176,007 291,976 2,797,506 (2,797,506 ) — External revenue 13,004,909 2,651,193 1,001,316 434,398 17,091,816 — 17,091,816 Depreciation and amortization 2,262,363 551,811 68,298 59,414 2,941,886 — 2,941,886 Operating profit (loss) 1,799,127 132,459 (365,194 ) (30,648 ) 1,535,744 (232,326 ) 1,303,418 Gain relating to investments in subsidiaries, associates and joint ventures, net 544,501 Finance income 575,050 Finance costs (326,830 ) Profit before income tax 2,096,139 (In millions of won) 2015 Cellular Fixed-line E-commerce Others Sub-total Adjustments Total Total revenue ₩ 14,962,689 3,162,712 1,703,278 410,265 20,238,944 (3,102,210 ) 17,136,734 Inter-segment revenue 1,693,411 668,139 643,299 97,361 3,102,210 (3,102,210 ) — External revenue 13,269,278 2,494,573 1,059,979 312,904 17,136,734 — 17,136,734 Depreciation and amortization 2,174,819 531,106 112,537 26,833 2,845,295 — 2,845,295 Operating profit (loss) 1,678,339 108,252 (6,740 ) (71,845 ) 1,708,006 (212,581 ) 1,495,425 Gain relating to investments in subsidiaries, associates and joint ventures, net 786,140 Finance income 103,900 Finance costs (350,100 ) Profit before income tax 2,035,365 |
Reconciliation of total segment operating income to consolidated operating profit from continuing operations | (2) Reconciliation of total segment operating income to consolidated operating profit from continuing operations for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Total segment operating income ₩ 1,536,626 1,535,744 1,708,006 Other operating income: Gain on disposal of property and equipment and intangible assets 13,991 6,908 7,140 Others(*1) 18,006 59,640 23,795 31,997 66,548 30,935 Other operating expenses: Impairment loss on property and equipment and intangible assets (54,946 ) (24,506 ) (35,845 ) Loss on disposal of property and equipment and intangible assets (60,086 ) (63,797 ) (21,392 ) Donations (112,634 ) (96,633 ) (72,454 ) Bad debt for accounts receivable — other (5,793 ) (40,312 ) (15,323 ) Others(*2) (110,592 ) (73,626 ) (98,502 ) (344,051 ) (298,874 ) (243,516 ) Consolidated operating profit from continuing operations ₩ 1,224,572 1,303,418 1,495,425 (*1) Others for the year ended December 31, 2016 include ₩25 billion of penalty refund. (*2) Others for the years ended December 31, 2017, 2016 and 2015 primarily consist of ₩21.4 billion, ₩7.6 billion and ₩29.5 billion of penalties, respectively, and various other expenses with inconsequential amounts. Since there are no intersegment sales of inventory or depreciable assets, there is no unrealized intersegment profit to be eliminated on consolidation. Domestic revenue for the years ended December 31, 2017, 2016 and 2015 amounts to ₩17,374 billion, ₩16,940 billion and ₩17,083 billion, respectively. Domestic non-current non-current No single customer contributed 10% or more to the Group’s total sales for the years ended December 31, 2017, 2016 and 2015. |
Operating revenue by service type | (3) The Group’s operating revenue by service type is as follows: (In millions of won) 2017 2016 2015 Cellular revenue: Wireless service(*1) ₩ 10,638,961 10,582,963 10,720,518 Cellular interconnection 592,754 614,446 710,026 Wireless device sales 1,052,203 922,449 963,354 Miscellaneous(*2) 978,217 885,051 875,380 13,262,135 13,004,909 13,269,278 Fixed-line telecommunication services revenue: Fixed line telephone service 316,763 357,754 420,611 Fixed line interconnection 116,070 134,089 57,130 Broadband internet service and advanced media platform service 1,641,645 1,472,776 1,308,789 International calling service 89,412 95,986 99,106 Miscellaneous(*3) 560,261 590,588 608,937 2,724,151 2,651,193 2,494,573 E-commerce 1,044,171 1,001,316 1,059,979 Other revenue: Portal service(*5) 43,952 54,177 71,812 Miscellaneous(*6) 445,604 380,221 241,092 489,556 434,398 312,904 Consolidated operating revenue ₩ 17,520,013 17,091,816 17,136,734 (*1) Wireless service revenue includes revenue from wireless voice and data transmission services principally derived through monthly plan-based value-added (*2) Miscellaneous cellular services revenue includes revenue from IoT solutions as well as other miscellaneous cellular services. (*3) Miscellaneous fixed-line telecommunication services revenue includes revenues from business communications services (other than fixed-line (*4) E-commerce (*5) Portal service revenue includes revenues from Nate, and online portal service operated by SK Communications. (*6) Miscellaneous other revenue includes revenues from hardware business, security business operated by one of the Group’s subsidiaries, NSOK Co., Ltd., marketing and sales solutions business operated by one of the Group’s subsidiaries, SK m&service Co., Ltd., and online open marketplace for mobile applications among other operations. |
Restricted Deposits (Tables)
Restricted Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Deposits which are restricted in use | Deposits which are restricted in use as of December 31, 2017 and 2016 are summarized as follows: (In millions of won) December 31, 2017 December 31, 2016 Short-term financial instruments(*) ₩ 89,850 90,278 Long-term financial instruments(*) 1,222 937 ₩ 91,072 91,215 (*) Financial instruments include charitable trust fund established by the Group where profits from the fund are donated to charitable institutions. As of December 31, 2017, the funds cannot be withdrawn before maturity. |
Categories of Financial Instr51
Categories of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of financial assets | (1) Financial assets by category as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Financial assets Available- for-sale financial assets Loans and Derivatives Total Cash and cash equivalents ₩ — — 1,457,735 — 1,457,735 Financial instruments — — 618,002 — 618,002 Short-term investment securities 97,003 47,383 — — 144,386 Long-term investment securities — 887,007 — — 887,007 Accounts receivable — trade — — 2,138,755 — 2,138,755 Loans and other receivables(*) — — 1,962,083 — 1,962,083 Derivative financial assets 231,311 — — 21,902 253,213 ₩ 328,314 934,390 6,176,575 21,902 7,461,181 (In millions of won) December 31, 2016 Financial assets Available- for-sale Loans and Derivatives Total Cash and cash equivalents ₩ — — 1,505,242 — 1,505,242 Financial instruments — — 469,705 — 469,705 Short-term investment securities — 107,364 — — 107,364 Long-term investment securities — 828,521 — — 828,521 Accounts receivable — trade — — 2,261,311 — 2,261,311 Loans and other receivables(*) — — 1,701,249 — 1,701,249 Derivative financial assets 7,368 — — 207,402 214,770 ₩ 7,368 935,885 5,937,507 207,402 7,088,162 (*) Details of loans and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Short-term loans ₩ 62,830 58,979 Accounts receivable — other 1,260,835 1,121,444 Accrued income 3,979 2,780 Other current assets 3,927 3,937 Long-term loans 50,874 65,476 Long-term accounts receivable — other 287,048 149,669 Guarantee deposits 292,590 298,964 ₩ 1,962,083 1,701,249 |
Summary of financial liabilities | (2) Financial liabilities by category as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Financial Financial Derivatives Total Accounts payable — trade ₩ — 351,711 — 351,711 Derivative financial liabilities — — 39,470 39,470 Borrowings — 382,817 — 382,817 Debentures(*1) 60,278 7,025,909 — 7,086,187 Accounts payable — other and others(*2) — 4,865,519 — 4,865,519 ₩ 60,278 12,625,956 39,470 12,725,704 (In millions of won) December 31, 2016 Financial Financial Derivatives Total Accounts payable — trade ₩ — 402,445 — 402,445 Derivative financial liabilities — — 87,153 87,153 Borrowings — 175,521 — 175,521 Debentures(*1) 59,600 7,134,606 — 7,194,206 Accounts payable — other and others (*2) — 4,842,734 — 4,842,734 ₩ 59,600 12,555,306 87,153 12,702,059 (*1) Bonds classified as financial liabilities at fair value through profit or loss as of December 31, 2017 and 2016 are structured bonds and they were designated as financial liabilities at fair value through profit or loss in order to eliminate a measurement inconsistency with the related derivatives. (*2) Details of accounts payable — other and others as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Accounts payable — other ₩ 1,867,074 1,767,799 Withholdings 1,736 1,525 Accrued expenses 1,327,906 1,125,816 Current portion of long-term payables — other 302,703 301,773 Long-term payables — other 1,346,763 1,624,590 Other non-current 19,337 21,231 ₩ 4,865,519 4,842,734 |
Trade and other receivables [member] | |
Summary of financial assets | (1) Details of trade and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Gross Allowances for Carrying amount Current assets: Accounts receivable — trade ₩ 2,365,270 (239,263 ) 2,126,007 Short-term loans 63,380 (550 ) 62,830 Accounts receivable — other 1,336,247 (75,412 ) 1,260,835 Accrued income 3,979 — 3,979 Others 3,927 — 3,927 3,772,803 (315,225 ) 3,457,578 Non-current Long-term loans 97,635 (46,761 ) 50,874 Long-term accounts receivable — other 287,048 — 287,048 Guarantee deposits 292,590 — 292,590 Long-term accounts receivable — trade 12,933 (185 ) 12,748 690,206 (46,946 ) 643,260 ₩ 4,463,009 (362,171 ) 4,100,838 (In millions of won) December 31, 2016 Gross amount Allowances for Carrying amount Current assets: Accounts receivable — trade ₩ 2,482,502 (241,576 ) 2,240,926 Short-term loans 59,526 (547 ) 58,979 Accounts receivable — other 1,200,421 (78,977 ) 1,121,444 Accrued income 2,780 — 2,780 Others 3,937 — 3,937 3,749,166 (321,100 ) 3,428,066 Non-current Long-term loans 113,456 (47,980 ) 65,476 Long-term accounts receivable — other 149,669 — 149,669 Guarantee deposits 298,964 — 298,964 Long-term accounts receivable — trade 20,637 (252 ) 20,385 582,726 (48,232 ) 534,494 ₩ 4,331,892 (369,332 ) 3,962,560 |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) - Trade and other receivables [member] | 12 Months Ended |
Dec. 31, 2017 | |
Changes in allowances for doubtful accounts of trade and other receivables | (2) Changes in allowances for doubtful accounts of trade and other receivables for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Balance at January 1 ₩ 369,332 344,016 Bad debt expense 40,377 78,132 Write-offs (70,802 ) (79,891 ) Other 23,264 27,075 Balance at December 31 ₩ 362,171 369,332 |
Details of overdue but not impaired, and impaired trade and other receivables | (3) Details of overdue but not impaired, and impaired trade and other receivables as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Accounts receivable - trade Other Accounts receivable - trade Other Neither overdue nor impaired ₩ 1,585,714 1,930,261 1,715,966 1,617,349 Overdue but not impaired 29,304 3,113 41,613 5,663 Impaired 763,185 151,432 745,560 205,741 2,378,203 2,084,806 2,503,139 1,828,753 Allowances for doubtful accounts (239,448 ) (122,723 ) (241,828 ) (127,504 ) ₩ 2,138,755 1,962,083 2,261,311 1,701,249 |
Aging of overdue but not impaired accounts receivable | (4) The aging of overdue but not impaired accounts receivable as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Accounts receivable - trade Other Accounts Other Less than 1 month ₩ 7,150 2,679 11,543 2,838 1 ~ 3 months 1,663 44 9,144 140 3 ~ 6 months 1,576 124 4,643 1 More than 6 months 18,915 266 16,283 2,684 ₩ 29,304 3,113 41,613 5,663 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Details of inventories | Details of inventories as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Acquisition Write-down Carrying Acquisition Write-down Carrying Merchandise ₩ 251,463 (7,488 ) 243,975 232,871 (6,913 ) 225,958 Finished goods 1,889 (557 ) 1,332 1,931 (363 ) 1,568 Work-in-process 1,906 (956 ) 950 2,895 (347 ) 2,548 Raw materials and supplies 29,395 (3,249 ) 26,146 31,141 (1,369 ) 29,772 ₩ 284,653 (12,250 ) 272,403 268,838 (8,992 ) 259,846 |
Amount of the inventory write-downs charged to the consolidated statement of income and write-off of inventories | The amount of the inventory write-downs and write-off (In millions of won) 2017 2016 2015 Charged to cost of products that have been resold ₩ 6,079 3,751 1,983 Write-off (2,820 ) (1,299 ) (2,095 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Less than 1 year [Member] | |
Details of investment securities | (1) Details of short-term investment securities as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Beneficiary certificates(*) ₩ 144,386 107,364 |
Later than one year [Member] | |
Details of investment securities | Details of long-term investment securities as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Equity securities: Marketable equity securities(*1) ₩ 589,202 526,363 Unlisted equity securities etc.(*2) 277,877 295,403 867,079 821,766 Debt securities: Investment bonds 19,928 6,755 ₩ 887,007 828,521 (*1) During the year ended December 31, 2016, the Group sold 3,793,756 shares of Loen Entertainment, Inc. to Kakao Corp. in exchange for 1,357,367 shares of Kakao Corp. and ₩218,037 million in cash. In connection with the sale of Loen Entertainment shares, the Group recognized gain on disposal of long-term investment securities amounting to ₩314,745 million. The Group recognized gain on disposal amounting to ₩138,779 million as the Group disposed its entire marketable equity securities of POSCO Co., Ltd. for ₩305,110 million of cash during the year ended December 31, 2016. In addition, the Group sold 1,357,367 shares of Kakao Corp. in exchange for ₩112,649 million in cash during the year ended December 31, 2017. In connection with the sale of Kakao Corp. shares, the Group recognized loss on disposal of long-term investment securities amounting to ₩35,468 million. (*2) Unlisted equity securities and equity investments whose fair value cannot be measured reliably are recorded at cost. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Considerations paid and assets in succession recognized at the acquisition date | 3) Considerations paid and assets and liabilities recognized at the acquisition date are as follows: (In millions of won) S.M. LIFE DESIGN S.M. Mobile Communications JAPAN Inc. Considerations paid: Cash and cash equivalents ₩ 30,000 — Shares of IRIVER LIMITED — 24,650 Assets and liabilities acquired: Cash and cash equivalents ₩ 3,434 4,112 Trade and other receivables 1,471 237 Inventories 1,879 — Property and equipment 4 311 Intangible assets 6,677 7,445 Other assets — 41 Trade and other payables (2,563 ) (815 ) Deferred tax liabilities (2,324 ) — Other liabilities (326 ) (154 ) Net assets ₩ 8,252 11,177 2) Considerations paid and identifiable assets acquired and liabilities assumed Considerations paid and assets in succession recognized at the acquisition date are as follows: (In millions of won) 2015 Considerations paid and liabilities assumed: Cash and cash equivalents ₩ 13,197 Accounts payable — other 1,858 ₩ 15,055 Assets acquired: Property and equipment ₩ 3,208 Intangible assets 8,486 Other assets 1,603 ₩ 13,297 |
Investments in Associates and56
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Investments in associates and joint ventures accounted for using the equity method | (1) Investments in associates and joint ventures accounted for using the equity method as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Country Ownership (%) Carrying Ownership Carrying Investments in associates: SK China Company Ltd.(*1) China 27.3 ₩ 526,099 9.6 ₩ 46,354 Korea IT Fund(*2) Korea 63.3 257,003 63.3 263,850 KEB HanaCard Co., Ltd.(*3) Korea 15.0 280,988 15.0 265,798 NanoEnTek, Inc. Korea 28.5 38,718 28.5 39,514 SK Industrial Development China Co., Ltd.(*1) Hong Kong — — 21.0 74,717 SK Technology Innovation Company Cayman Islands 49.0 42,511 49.0 47,488 HappyNarae Co., Ltd.(*4) Korea 45.0 21,873 42.5 17,236 SK hynix Inc. Korea 20.1 8,130,000 20.1 6,132,122 SK MENA Investment B.V. Netherlands 32.1 13,853 32.1 15,451 SKY Property Mgmt. Ltd.(*1) Virgin Island — — 33.0 263,225 S.M. Culture & Contents Co., Ltd.(*5) Korea 23.4 64,966 — — Xian Tianlong Science and Technology Co., Ltd. China 49.0 25,891 49.0 25,880 Daehan Kanggun BcN Co., Ltd. and others — — 96,479 — 115,181 Sub-total 9,498,381 7,306,816 Investments in joint ventures: Dogus Planet, Inc.(*6) Turkey 50.0 13,991 50.0 20,081 PT XL Planet Digital(*7) Indonesia — — 50.0 27,512 Finnq Co., Ltd.(*8) Korea 49.0 16,474 49.0 24,174 Celcom Planet and others — — 9,592 — 25,740 Sub-total 40,057 97,507 Total ₩ 9,538,438 ₩ 7,404,323 (*1) During the year ended December 31, 2017, the Group contributed its shares in SKY Property Mgmt. Ltd. and SK Industrial Development China Co., Ltd., both equity method investees of the Group, to SK China Company Ltd., and participated in SK China Company Ltd.’s rights issue amounting to USD 100,000,000, which resulted in Group’s acquiring 8,101,884 and 2,107,037 shares of SK China Company Ltd., respectively. This investment in associates acquired through this contribution in kind transaction was measured at fair value. (*2) Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over Korea IT Fund under the contractual agreement with other shareholders. (*3) This investment was classified as investments in associates as the Group can exercise significant influence through its right to appoint the members of board of directors even though the Group has less than 20% of equity interests. (*4) The Group acquired 40,000 shares of HappyNarae Co., Ltd. at ₩17,212 per share during the year ended December 31, 2017. (*5) During the year ended December 31, 2017, the Group subscribed to a third-party allocation of new shares of 22,033,898 by S.M. Culture & Contents Co., Ltd. at ₩65,341 million in cash. (*6) The investment is held by SK Planet Co., Ltd. (*7) PT XL Planet Digital was disposed during the year ended December 31, 2017. (*8) Investment in Finnq Co., Ltd. was classified as investment in joint venture as the Group has joint control pursuant to the agreement with the other shareholders. |
Market price of investments in listed associates | (2) The market price of investments in listed associates as of December 31, 2017 and 2016 are as follows: (In millions of won, except for share data) December 31, 2017 December 31, 2016 Market value Number of Fair value Market value (in won) Number of Fair value NanoEnTek, Inc. ₩ 5,950 6,960,445 41,415 5,020 6,960,445 34,941 SK hynix Inc. 76,500 146,100,000 11,176,650 44,700 146,100,000 6,530,670 S.M. Culture & Contents Co., Ltd. 2,700 22,033,898 59,492 — — — |
Financial information of significant associates | (3) The financial information of significant associates as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) As of December 31, 2017 SK hynix KEB HanaCard SK China Company Ltd. (*) Current assets ₩ 17,310,444 7,339,492 729,872 Non-current 28,108,020 220,258 1,031,647 Current liabilities 8,116,133 1,181,746 81,161 Non-current 3,481,412 4,861,842 64,717 2017 Revenue 30,109,434 1,519,607 69,420 Profit for the year 10,642,219 106,352 11,492 Other comprehensive income (loss) (422,042 ) (984 ) 27,190 Total comprehensive income 10,220,177 105,368 38,682 (*) The financial information of SK hynix Inc., KEB HanaCard Co., Ltd., and SK China Company Ltd. are consolidated financial information. (In millions of won) As of December 31, 2016 SK hynix Inc.(*) KEB HanaCard Co., Ltd.(*) Current assets ₩ 9,838,982 6,868,387 Non-current 22,377,044 239,758 Current liabilities 4,160,849 1,219,327 Non-current 4,031,647 4,476,979 2016 Revenue 17,197,975 1,413,077 Profit for the year 2,960,483 75,595 Other comprehensive income (loss) 28,844 (154 ) Total comprehensive income 2,989,327 75,441 (*) The financial information of SK hynix Inc. and KEB HanaCard Co., Ltd. are consolidated financial information. (In millions of won) SK hynix Inc. KEB HanaCard Co., Ltd. 2015 Revenue ₩ 18,797,998 1,472,830 Profit for the year 4,323,595 10,119 Other comprehensive income (loss) 40,215 (547 ) Total comprehensive income 4,363,810 9,572 |
Condensed financial information of joint ventures | (4) The condensed financial information of joint ventures as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) Dogus Planet, Inc. Finnq Co., Ltd. As of December 31, 2017 Current assets ₩ 39,656 32,232 Cash and cash equivalents 25,818 4,590 Non-current 21,159 15,610 Current liabilities 32,622 5,685 Accounts payable, other payables and provision 2,743 2,290 Non-current 212 13,862 2017 Revenue 82,791 — Depreciation and amortization (6,152 ) (1,077 ) Interest income 781 532 Interest expense (4 ) (276 ) Loss for the year (4,535 ) (15,699 ) Total comprehensive loss (4,535 ) (15,699 ) (In millions of won) Dogus Planet, Inc. PT XL Planet Digital Finnq Co., Ltd. As of December 31, 2016 Current assets ₩ 46,433 20,077 48,699 Cash and cash equivalents 45,839 14,985 48,408 Non-current 20,218 50,765 673 Current liabilities 26,417 14,513 138 Accounts payable, other payables and provision 1,971 10,306 15 Non-current 72 1,305 784 2016 Revenue 53,864 9,492 — Depreciation and amortization (5,299 ) (940 ) (12 ) Interest income 394 267 182 Interest expense (2,139 ) — — Income tax benefit — 51 — Loss for the year (22,017 ) (49,438 ) (829 ) Total comprehensive loss (22,017 ) (49,438 ) (829 ) (In millions of won) Dogus Planet, Inc. PT. Melon PT XL 2015 Revenue ₩ 38,944 17,094 5,536 Depreciation and amortization (5,318 ) (132 ) (2,746 ) Interest income 465 288 525 Income tax benefit — — 7,025 Profit (Loss) for the year (32,713 ) 1,853 (21,381 ) Total comprehensive income (loss) (32,713 ) 1,853 (21,381 ) |
Reconciliations of financial information of significant associates to carrying amounts of investments in associates in the consolidated financial statements | (5) Reconciliations of financial information of significant associates to carrying amounts of investments in associates in the consolidated financial statements as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Net Ownership Net assets Cost-book Carrying Associates: SK hynix Inc.(*1,2) ₩ 33,814,467 20.1 6,997,560 1,132,440 8,130,000 KEB HanaCard Co., Ltd. 1,516,162 15.0 227,424 53,564 280,988 SK China Company Ltd.(*1) 1,612,899 27.3 439,857 86,242 526,099 (In millions of won) December 31, 2016 Net Ownership Net assets Cost-book Carrying Associates: SK hynix Inc.(*1,2) ₩ 24,016,955 20.1 4,970,267 1,161,855 6,132,122 KEB HanaCard Co., Ltd. 1,411,839 15.0 211,776 54,022 265,798 (*1) Net assets of these entities represent net assets excluding those attributable to their non-controlling (*2) The ownership interest is based on the number of shares owned by the Parent Company as divided by the total shares issued by the investee company. The Group applied the equity method using the effective ownership interest of 20.69% which is based on the number of shares owned by the Parent Company and the total issued shares outstanding less investee’s treasury shares. |
Details of the changes in investments in associates and joint ventures accounted for using the equity method | (6) Details of the changes in investments in associates and joint ventures accounted for using the equity method for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Share of Other hensive Impair- ment Other Ending Investments in associates SK China Company Ltd.(*1) ₩ 46,354 113,803 2,707 (36,783 ) — 400,018 526,099 Korea IT Fund(*2) 263,850 — (8,815 ) 3,371 — (1,403 ) 257,003 KEB HanaCard Co., Ltd. 265,798 — 15,494 (304 ) — — 280,988 NanoEnTek, Inc. 39,514 — (733 ) (63 ) — — 38,718 SK Industrial Development China Co., Ltd.(*1) 74,717 — 5,154 (1,092 ) — (78,779 ) — SK Technology Innovation Company 47,488 — 433 (5,410 ) — — 42,511 HappyNarae Co., Ltd. 17,236 688 3,929 20 — — 21,873 SK hynix Inc.(*2) 6,132,122 — 2,175,887 (90,349 ) — (87,660 ) 8,130,000 SK MENA Investment B.V. 15,451 — 131 (1,729 ) — — 13,853 SKY Property Mgmt. Ltd.(*1) 263,225 — 2,362 1,141 — (266,728 ) — S.M. Culture & Contents Co., Ltd. — 65,341 (375 ) — — — 64,966 Xian Tianlong Science and Technology Co., Ltd. 25,880 — 11 — — — 25,891 Daehan Kanggun BcN Co., Ltd. and others(*2) 115,181 (1,306 ) (6,924 ) (2,723 ) (1,311 ) (6,438 ) 96,479 Sub-total 7,306,816 178,526 2,189,261 (133,921 ) (1,311 ) (40,990 ) 9,498,381 Investments in joint ventures Dogus Planet, Inc. 20,081 2,162 (2,267 ) (5,985 ) — — 13,991 PT XL Planet Digital(*3) 27,512 (18,864 ) (8,648 ) — — — — Finnq Co., Ltd 24,174 — (7,691 ) (9 ) — — 16,474 Celcom Planet and others 25,740 — (6,228 ) (833 ) — (9,087 ) 9,592 Sub-total 97,507 (16,702 ) (24,834 ) (6,827 ) — (9,087 ) 40,057 Total ₩ 7,404,323 161,824 2,164,427 (140,748 ) (1,311 ) (50,077 ) 9,538,438 (*1) Other increase (decrease) is due to merger of SK China Company Ltd., SK Industrial Development China Co., Ltd. and SKY Property Mgmt. Ltd. (*2) Dividends received from the associates are deducted from the carrying amount during the year ended December 31, 2017. (*3) During the year ended December 31, 2017, the Group disposed the shares of PT XL Planet Digital and recognized loss on disposal of ₩27,900 million. (In millions of won) 2016 Beginning Acquisition Share of Other Impair- Other Ending Investments in associates SK China Company Ltd. ₩ 43,814 — 2,257 283 — — 46,354 Korea IT Fund(*1) 260,456 — 14,864 (5,388 ) — (6,082 ) 263,850 KEB HanaCard Co., Ltd. 254,177 — 11,658 (37 ) — — 265,798 Candle Media Co., Ltd. 20,144 (18,860 ) (673 ) (611 ) — — — NanoEnTek, Inc. 45,008 — (3,950 ) (1,544 ) — — 39,514 SK Industrial Development China Co., Ltd. 86,324 — (6,298 ) (5,309 ) — — 74,717 SK Technology Innovation Company 45,891 — 162 1,435 — — 47,488 HappyNarae Co., Ltd. 17,095 — 240 (99 ) — — 17,236 SK hynix Inc.(*1) 5,624,493 — 572,086 8,593 — (73,050 ) 6,132,122 SK MENA Investment B.V. 14,929 — 63 459 — — 15,451 SKY Property Mgmt. Ltd. 251,166 — 16,066 (4,007 ) — — 263,225 Xian Tianlong Science and Technology Co., Ltd. 25,767 — 113 — — — 25,880 Daehan Kanggun BcN Co., Ltd. and others 161,058 (26,798 ) (13,179 ) 754 (6,972 ) 318 115,181 Sub-total 6,850,322 (45,658 ) 593,409 (5,471 ) (6,972 ) (78,814 ) 7,306,816 Investments in joint ventures Dogus Planet, Inc. 15,118 18,722 (11,008 ) (2,751 ) — — 20,081 PT. Melon Indonesia(*2) 4,339 (3,488 ) 918 (1,769 ) — — — PT XL Planet Digital 23,108 29,123 (24,719 ) — — — 27,512 Finnq Co., Ltd — 24,580 (406 ) — — — 24,174 Celcom Planet and others 3,406 43,769 (21,435 ) — — — 25,740 Sub-total 45,971 112,706 (56,650 ) (4,520 ) — — 97,507 Total ₩ 6,896,293 67,048 536,759 (9,991 ) (6,972 ) (78,814 ) 7,404,323 (*1) Dividends received from the associate are deducted from the carrying amount during the year ended December 31, 2016. (*2) During the year ended December 31, 2016, the Group disposed of all shares of PT. Melon Indonesia and recognized gain on disposal of ₩11,634 million. |
Details of cumulative unrecognized equity method losses | (7) The Group discontinued the application of equity method to the following investees due to their carrying amounts being reduced to zero. The details of cumulative unrecognized equity method losses as of December 31, 2017 are as follows: (In millions of won) Unrecognized loss (profit) Unrecognized change in equity Year ended Cumulative Year ended Cumulative Wave City Development Co., Ltd. ₩ (1,190 ) 2,100 — — Daehan Kanggun BcN Co., Ltd. and others (5,475 ) 5,316 — 365 ₩ (6,665 ) 7,416 — 365 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of property and equipment | Property and equipment as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Acquisition cost Accumulated Accumulated Carrying Land ₩ 862,861 — — 862,861 Buildings 1,638,749 (756,099 ) — 882,650 Structures 866,909 (488,334 ) — 378,575 Machinery 30,343,739 (23,262,762 ) (1,179 ) 7,079,798 Other 1,722,441 (1,188,893 ) (2,491 ) 531,057 Construction in progress 409,941 — — 409,941 ₩ 35,844,640 (25,696,088 ) (3,670 ) 10,144,882 (In millions of won) December 31, 2016 Acquisition cost Accumulated Accumulated Carrying Land ₩ 835,909 — — 835,909 Buildings 1,604,863 (704,891 ) — 899,972 Structures 812,010 (453,055 ) — 358,955 Machinery 29,705,088 (22,667,047 ) (1,991 ) 7,036,050 Other 1,701,794 (1,138,303 ) (457 ) 563,034 Construction in progress 680,292 — — 680,292 ₩ 35,339,956 (24,963,296 ) (2,448 ) 10,374,212 |
Changes in property and equipment | (2) Changes in property and equipment for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Disposal Transfer(*) Depreci- Impair- Business Other Ending Land ₩ 835,909 13,093 (4,449 ) 18,308 — — — — 862,861 Buildings 899,972 5,098 (477 ) 29,614 (51,557 ) — — — 882,650 Structures 358,955 46,614 (74 ) 8,386 (35,306 ) — — — 378,575 Machinery 7,036,050 656,731 (41,692 ) 1,644,045 (2,214,524 ) (778 ) — (34 ) 7,079,798 Other 563,034 720,431 (9,252 ) (597,404 ) (143,261 ) (2,234 ) 315 (572 ) 531,057 Construction in progress 680,292 1,317,389 (4,172 ) (1,583,560 ) — — — (8 ) 409,941 ₩ 10,374,212 2,759,356 (60,116 ) (480,611 ) (2,444,648 ) (3,012 ) 315 (614 ) 10,144,882 (*) Includes reclassification to intangible assets. (In millions of won) 2016 Beginning balance Acquisition Disposal Transfer(*) Depreciation Impairment Ending Land ₩ 812,947 2,464 (3,514 ) 24,012 — — 835,909 Buildings 911,129 4,637 (9,176 ) 43,910 (50,528 ) — 899,972 Structures 344,221 33,802 (33 ) 15,145 (34,180 ) — 358,955 Machinery 7,342,009 660,629 (45,672 ) 1,234,737 (2,152,725 ) (2,928 ) 7,036,050 Other 473,438 807,047 (6,052 ) (568,644 ) (142,700 ) (55 ) 563,034 Construction in progress 487,512 1,154,424 (9,710 ) (951,934 ) — — 680,292 ₩ 10,371,256 2,663,003 (74,157 ) (202,774 ) (2,380,133 ) (2,983 ) 10,374,212 (*) Includes reclassification to intangible assets. |
Investment Property (Tables)
Investment Property (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Changes in investment properties | (2) Changes in investment properties for the year ended December 31, 2016 are as follows: (In millions of won) 2016 Beginning balance Reclassification(*) Depreciation Ending Land ₩ 10,634 (10,634 ) — — Buildings 4,437 (4,334 ) (103 ) — ₩ 15,071 (14,968 ) (103 ) — (*) Includes reclassification to property and equipment. |
Income and expenses from investment property | (3) Income and expenses from investment property for the years ended December 31, 2016 and 2015 are as follows: (In millions of won) 2016 2015 Rent revenue ₩ 386 850 Operating expense (114 ) (240 ) |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of goodwill | Goodwill as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Goodwill related to acquisition of Shinsegi Telecom, Inc. ₩ 1,306,236 1,306,236 Goodwill related to acquisition of SK Broadband Co., Ltd. 358,443 358,443 Other goodwill 250,338 267,773 ₩ 1,915,017 1,932,452 |
Details of the changes in goodwill | Details of the changes in goodwill for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 1,932,452 1,908,590 Acquisition 35,221 19,974 Impairment loss (33,441 ) — Other (19,215 ) 3,888 ₩ 1,915,017 1,932,452 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of intangible assets | Intangible assets as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Acquisition Accumulated Accumulated Carrying Frequency usage rights ₩ 4,843,955 (2,667,015 ) — 2,176,940 Land usage rights 65,841 (50,091 ) — 15,750 Industrial rights 166,082 (54,735 ) — 111,347 Development costs 140,460 (134,828 ) (1,529 ) 4,103 Facility usage rights 153,438 (116,987 ) — 36,451 Customer relations 20,796 (16,761 ) — 4,035 Club memberships(*1) 108,382 — (34,768 ) 73,614 Other(*2) 3,911,749 (2,733,485 ) (13,539 ) 1,164,725 ₩ 9,410,703 (5,773,902 ) (49,836 ) 3,586,965 (In millions of won) December 31, 2016 Acquisition Accumulated Accumulated Carrying Frequency usage rights ₩ 4,843,955 (2,263,127 ) — 2,580,828 Land usage rights 65,148 (44,314 ) — 20,834 Industrial rights 160,897 (39,697 ) — 121,200 Development costs 141,727 (136,446 ) (410 ) 4,871 Facility usage rights 151,906 (110,118 ) — 41,788 Customer relations 19,742 (13,090 ) — 6,652 Club memberships(*1) 113,161 — (39,122 ) 74,039 Other(*2) 3,315,921 (2,386,992 ) (2,787 ) 926,142 ₩ 8,812,457 (4,993,784 ) (42,319 ) 3,776,354 (*1) Club memberships are classified as intangible assets with indefinite useful life and are not amortized. (*2) Other intangible assets primarily consist of computer software and usage rights to a research facility which the Group built and donated, and the Group is given rights-to-use |
Details of the changes in intangible assets | Research and development expenditures recognized as expense for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Research and development costs expensed as incurred ₩ 395,276 344,787 315,790 |
Intangible assets other than goodwill [Member] | |
Details of the changes in intangible assets | Details of the changes in intangible assets for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Acquisition Disposal Transfer (*1) Amortization Impair- ment (*2) Business Others Ending Frequency usage rights ₩ 2,580,828 — — — (403,888 ) — — — 2,176,940 Land usage rights 20,834 3,689 (972 ) 200 (8,001 ) — — — 15,750 Industrial rights 121,200 2,677 (28 ) (5,635 ) (6,870 ) — 4 (1 ) 111,347 Development costs 4,871 3,813 (9 ) (793 ) (2,660 ) (1,119 ) — — 4,103 Facility usage rights 41,788 2,805 (36 ) 129 (8,235 ) — — — 36,451 Customer relations 6,652 1,054 — — (3,671 ) — — — 4,035 Club memberships 74,039 5,023 (3,452 ) 122 — (769 ) — (1,349 ) 73,614 Other 926,142 127,396 (19,698 ) 503,277 (369,546 ) (16,605 ) 14,118 (359 ) 1,164,725 ₩ 3,776,354 146,457 (24,195 ) 497,300 (802,871 ) (18,493 ) 14,122 (1,709 ) 3,586,965 (*1) Includes reclassification from advance payments and property and equipment. (*2) The Group recognized the difference between recoverable amount and the carrying amount of club memberships amounting to ₩18,493 million as impairment loss for the year ended December 31, 2017. (*3) Includes intangible assets acquired as a result of IRIVER LIMITED’s purchase and merge of S.M. LIFE DESIGN COMPANY INC. and SM mobile communications Co., Ltd. during the year ended December 31, 2017. (In millions of won) 2016 Beginning Acquisition Disposal Transfer Amortiza Impair- ment(*3) Business Ending Frequency usage rights(*1) ₩ 1,103,517 1,810,076 — — (332,765 ) — — 2,580,828 Land usage rights 26,576 5,338 (1,921 ) — (9,159 ) — — 20,834 Industrial rights 116,542 6,226 (148 ) 5,004 (6,424 ) — — 121,200 Development costs 7,472 1,404 — 338 (3,933 ) (410 ) — 4,871 Facility usage rights 48,019 2,181 (50 ) 231 (8,593 ) — — 41,788 Customer relations 7,175 499 — — (4,051 ) — 3,029 6,652 Club memberships 91,507 7,983 (7,624 ) — — (17,827 ) — 74,039 Other 903,976 141,045 (20,306 ) 228,110 (323,397 ) (3,286 ) — 926,142 ₩ 2,304,784 1,974,752 (30,049 ) 233,683 (688,322 ) (21,523 ) 3,029 3,776,354 (*1) During the year ended December 31, 2016, the Parent Company acquired the frequency right for bandwidth blocs in the 2.6 GHz band for ₩1,330,100 million at the spectrum auction held by the Ministry of Science, ICT and Future Planning (MSIP) of Korea and made the initial payment in accordance with the terms of the agreement in August 2016. The remaining consideration will be paid on an annual installment basis for 10 years from August 2016. In addition, the Parent Company extended frequency usage rights for 2.1 GHz band for ₩568,500 million with the initial payment made to MSIP during the year ended December 31, 2016. The remaining consideration will be paid on an annual installment basis for 5 years from December 2016. (*2) Includes reclassification from advance payments and property and equipment. (*3) The Group recognized the difference between recoverable amount and the carrying amount of intangible assets, amounting to ₩21,523 million as impairment loss for the year ended December 31, 2016. |
Frequency usage rights [member] | |
Summary of intangible assets | The carrying amount and residual useful lives of frequency usage rights as of December 31, 2017 are as follows, all of which are amortized on a straight-line basis: (In millions of won) Amount Description Commencement Completion of 800MHz license ₩ 141,904 Frequency usage rights relating to CDMA and LTE service Jul. 2011 Jun. 2021 1.8GHz license 502,480 Frequency usage rights relating to LTE service Sept. 2013 Dec. 2021 WiBro license 2,957 WiBro service Mar. 2012 Mar. 2019 2.6GHz license 1,092,770 Frequency usage rights relating to LTE service Sept. 2016 Dec. 2026 2.1GHz license 436,829 Frequency usage rights relating to W-CDMA Dec. 2016 Dec. 2021 ₩ 2,176,940 |
Borrowings and Debentures (Tabl
Borrowings and Debentures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Short-term borrowings | Short-term borrowings as of December 31, 2017 and 2016 are as follows: (In millions of won) Lender Annual December 31, December 31, 2016 Short-term borrowings Shinhan Bank 2.85 ₩ 30,000 — Woori Bank 2.88 — 2,614 Commercial paper KEB Hana Bank 1.67 50,000 — Bank overdraft KEB Hana Bank 3.17 30,000 — Shinhan Bank 3.38 20,000 — ₩ 130,000 2,614 |
Long-term borrowings | Long-term borrowings as of December 31, 2017 and 2016 are as follows: (In millions of won ) Lender Annual interest Maturity December 31, 2017 December 31, 2016 Korea Development Bank(*1) 3.20 Mar. 31, 2020 ₩ 30,000 — KEB Hana Bank 3.18 Feb. 28, 2019 40,000 — Kookmin Bank 1.29 Mar. 15, 2017 — 500 Kookmin Bank 1.95 Mar. 15, 2018 717 3,583 Korea Development Bank(*2) 1.99 Jul. 30, 2019 22,750 35,750 Korea Development Bank(*2) 1.99 Jul. 30, 2019 5,833 9,167 Korea Development Bank(*2) 2.27 Dec. 20, 2021 49,000 49,000 Korea Development Bank(*2) 2.37 Dec. 21, 2022 50,000 — Export Kreditnamnden(*3) 1.70 Apr. 29, 2022 55,471 76,493 (USD 51,775 ) (USD 63,296 ) Sub-total 253,771 174,493 Less present value discount (954 ) (1,586 ) 252,817 172,907 Less current portion (41,331 ) (33,191 ) ₩ 211,486 139,716 (*1) SK Planet Co., Ltd., one of the subsidiaries of the Parent Company entered into a floating-to-fixed (*2) SK Broadband Co., Ltd., one of the subsidiaries of the Parent Company entered into a floating-to-fixed (*3) The long-term borrowings are to be repaid by installments on an annual basis from 2014 to 2022. |
Debentures | Debentures as of December 31, 2017 and 2016 are as follows: (In millions of won, thousands of U.S. dollars and thousands of other currencies) Purpose Maturity Annual interest December 31, 2017 December 31, Unsecured corporate bonds Other fund 2018 5.00 ₩ 200,000 200,000 Unsecured corporate bonds Operating fund 2021 4.22 190,000 190,000 Unsecured corporate bonds Operating and refinancing fund 2019 3.24 170,000 170,000 Unsecured corporate bonds 2022 3.30 140,000 140,000 Unsecured corporate bonds 2032 3.45 90,000 90,000 Unsecured corporate bonds Operating fund 2023 3.03 230,000 230,000 Unsecured corporate bonds 2033 3.22 130,000 130,000 Unsecured corporate bonds 2019 3.30 50,000 50,000 Unsecured corporate bonds 2024 3.64 150,000 150,000 Unsecured corporate bonds(*1) 2029 4.72 60,278 59,600 Unsecured corporate bonds Refinancing fund 2019 2.53 160,000 160,000 Unsecured corporate bonds 2021 2.66 150,000 150,000 Unsecured corporate bonds 2024 2.82 190,000 190,000 Unsecured corporate bonds Operating and refinancing fund 2022 2.40 100,000 100,000 Unsecured corporate bonds refinancing fund 2025 2.49 150,000 150,000 Unsecured corporate bonds 2030 2.61 50,000 50,000 Unsecured corporate bonds Operating fund 2018 1.89 90,000 90,000 Unsecured corporate bonds 2025 2.66 70,000 70,000 Unsecured corporate bonds 2030 2.82 90,000 90,000 Unsecured corporate bonds Operating and refinancing fund 2018 2.07 80,000 80,000 Unsecured corporate bonds 2025 2.55 100,000 100,000 Unsecured corporate bonds 2035 2.75 70,000 70,000 Unsecured corporate bonds Operating fund 2019 1.65 70,000 70,000 Unsecured corporate bonds 2021 1.80 100,000 100,000 Unsecured corporate bonds 2026 2.08 90,000 90,000 Unsecured corporate bonds 2036 2.24 80,000 80,000 Unsecured corporate bonds 2019 1.62 50,000 50,000 Unsecured corporate bonds 2021 1.71 50,000 50,000 Unsecured corporate bonds 2026 1.97 120,000 120,000 Unsecured corporate bonds 2031 2.17 50,000 50,000 Unsecured corporate bonds Refinancing fund 2020 1.93 60,000 — Unsecured corporate bonds 2022 2.17 120,000 — Unsecured corporate bonds 2027 2.55 100,000 — Unsecured corporate bonds Operating and refinancing fund 2032 2.65 90,000 — Unsecured corporate bonds Operating fund 2020 2.39 100,000 — Unsecured corporate bonds Operating and refinancing fund 2022 2.63 80,000 — Unsecured corporate bonds Refinancing fund 2027 2.84 100,000 — Unsecured corporate bonds(*2) Operating fund 2017 4.28 — 100,000 Unsecured corporate bonds(*2) 2017 3.27 — 120,000 Unsecured corporate bonds(*2) 2019 3.49 210,000 210,000 Unsecured corporate bonds(*2) 2019 2.76 130,000 130,000 Unsecured corporate bonds(*2) 2018 2.23 50,000 50,000 Unsecured corporate bonds(*2) 2020 2.49 160,000 160,000 Unsecured corporate bonds(*2) 2020 2.43 140,000 140,000 Unsecured corporate bonds(*2) 2020 2.18 130,000 130,000 Unsecured corporate bonds(*2) 2019 1.58 50,000 50,000 Unsecured corporate bonds(*2) Operating and refinancing fund 2021 1.77 120,000 120,000 Unsecured corporate bonds(*2) Operating fund 2022 2.26 150,000 — Unsecured corporate bonds(*2) Refinancing fund 2022 2.34 30,000 — Unsecured corporate bonds(*2) Operating and refinancing fund 2022 2.70 140,000 — Unsecured corporate bonds(*3) Operating fund 2017 3.48 — 20,000 Convertible bonds(*4) 2019 1.00 5,558 — Unsecured global bonds 2027 6.63 428,560 483,400 (USD 400,000 ) (USD 400,000 ) Unsecured private Swiss bonds 2017 1.75 — 354,399 bonds (CHF 300,000 ) Unsecured global bonds 2018 2.13 749,980 845,950 (USD 700,000 ) (USD 700,000 ) Unsecured corporate Australian bonds 2017 4.75 — 261,615 (AUD 300,000 ) Floating rate notes(*5) 2020 3M Libor + 0.88 321,420 362,550 (USD 300,000) (USD 300,000 ) Foreign global bonds(*2) 2018 2.88 321,420 362,550 (USD 300,000 ) (USD 300,000 ) Sub-total 7,107,216 7,220,064 Less discounts on bonds (21,029 ) (25,858 ) 7,086,187 7,194,206 Less current portion of bonds (1,489,617 ) (855,276 ) ₩ 5,596,570 6,338,930 (*1) The Group eliminated a measurement inconsistency of accounting profit or loss between the bonds and related derivatives by designating the structured bonds as financial liabilities at fair value through profit or loss. The carrying amount of financial liabilities designated at fair value through profit or loss exceeds the principal amount required to pay at maturity by ₩10,278 million as of December 31, 2017. (*2) Unsecured corporate bonds were issued by SK Broadband Co., Ltd. (*3) Unsecured corporate bonds were issued by PS&Marketing Corporation. (*4) During the year ended December 31, 2017, the Parent Company sold the convertible bonds issued by IRIVER LIMITED to third parties. (*5) As of December 31, 2017, 3M LIBOR rate is 1.69%. |
Long-term Payables - Other (Tab
Long-term Payables - Other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Long-term payables - other | (1) Long-term payables — other as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Payables related to acquisition of frequency usage rights ₩ 1,328,630 1,602,943 Other(*) 18,133 21,647 ₩ 1,346,763 1,624,590 (*) Other includes other long-term employee compensation liabilities. |
Summary of Long-term payables - other | (2) As of December 31, 2017 and 2016, details of long-term payables — other which consist of payables related to the acquisition of frequency usage rights are as follows (See Note 16): (In millions of won) December 31, December 31, Long-term payables — other ₩ 1,710,255 2,013,122 Present value discount on long-term payables — other (79,874 ) (108,406 ) 1,630,381 1,904,716 Less current portion of long-term payables — other (301,751 ) (301,773 ) Carrying amount at December 31 ₩ 1,328,630 1,602,943 |
Repayment schedule of the principal amount of long-term payables - other related to acquisition of frequency usage rights | (3) The repayment schedule of the principal amount of long-term payables — other related to acquisition of frequency usage rights as of December 31, 2017 is as follows: (In millions of won) Amount Less than 1 year ₩ 302,867 1~3 years 605,734 3~5 years 402,624 More than 5 years 399,030 ₩ 1,710,255 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Changes in provisions | (1) Changes in provisions for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) For the year ended December 31, 2017 As of December 31, 2017 Beginning Increase Utilization Reversal Other Ending Current Non-current Provision for installment of handset subsidy(*1) ₩ 24,710 2 (8,898 ) (11,940 ) — 3,874 3,874 — Provision for restoration(*2) 64,679 12,066 (2,517 ) (1,006 ) 45 73,267 40,598 32,669 Emission allowance(*3) 2,788 4,663 (518 ) (2,283 ) — 4,650 4,650 — Other provisions 5,740 952 (3,757 ) — — 2,935 2,935 — ₩ 97,917 17,683 (15,690 ) (15,229 ) 45 84,726 52,057 32,669 (In millions of won) For the year ended December 31, 2016 As of December 31, 2016 Beginning Increase Utilization Reversal Other Ending Current Non-current Provision for installment of handset subsidy(*1) ₩ 5,670 37,530 (18,490 ) — — 24,710 19,939 4,771 Provision for restoration(*2) 59,954 6,677 (1,082 ) (913 ) 43 64,679 37,760 26,919 Emission allowance(*3) 1,477 1,480 (169 ) — — 2,788 2,788 — Other provisions 3,104 3,237 (601 ) — — 5,740 5,740 — ₩ 70,205 48,924 (20,342 ) (913 ) 43 97,917 66,227 31,690 (*1) The Group recognizes a provision for handset subsidies given to the subscribers who purchase handsets on an installment basis. The amount recognized as a provision for handset subsidies is the Group’s best estimate of the expenditure required to settle the current obligations to the relevant subscribers at the end of the reporting period, which is calculated as of the present values of estimated handset subsidies to be granted over the relevant service periods, taking into account the customer retention rate for the relevant subscribers. The discount rate used in calculating the present values is based on AAA-rated two-year (*2) In the course of the Group’s activities, base station and other assets are installed on leased premises which are expected to have costs associated with restoring the premises to their original conditions where these assets are situated upon ceasing their use on those premises. The associated cash outflows, which are long-term in nature, are generally expected to occur at the dates of the termination of lease contracts to which the assets relate. These restoration costs are calculated on the basis of the identified costs for the current financial year, extrapolated into the future based on management’s best estimates of future trends in prices, inflation, and other factors, and are discounted to present value at a risk-adjusted rate specifically applicable to the liability. Forecasts of estimated future cash outflows are revised in light of future changes in business conditions or technological requirements. The Group records these restoration costs as property and equipment and subsequently expenses them using the straight-line method over the asset’s useful life, and records the accretion of the liability as a charge to finance costs. (*3) The Group recognizes estimated future payment for the number of emission certificates required to settle the Group’s obligation exceeding the actual number of certificates on hand as emission allowances according to the Act on Allocation and Trading of Greenhouse Gas Emission Permits. |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Expected future lease payments and lease revenues | The Group entered into operating lease agreements and sublease agreements in relation to rented office space and the expected future lease payments and lease revenues as of December 31, 2017 are as follows: (In millions of won) Minimum Revenues Less than 1 year ₩ 49,289 1,926 1~5 years 101,872 916 ₩ 151,161 2,842 |
Defined Benefit Liabilities(A65
Defined Benefit Liabilities(Assets) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Details of defined benefit liabilities (assets) | (1) Details of defined benefit liabilities(assets) as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Present value of defined benefit obligations ₩ 679,625 595,667 Fair value of plan assets (663,617 ) (555,175 ) Defined benefit assets(*) (45,952 ) (30,247 ) Defined benefit liabilities 61,960 70,739 (*) Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit obligations of Group entities with defined benefit assets of other Group entities, defined benefit assets of Group entities have been separately presented from defined benefit liabilities. |
Principal actuarial assumptions | (2) Principal actuarial assumptions as of December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Discount rate for defined benefit obligations 2.58%~4.03% 1.90%~2.96% Expected rate of salary increase 3.08%~5.93% 2.49%~6.09% |
Total amount of expenses recognized in profit and loss | (5) Total amount of expenses recognized in profit and loss (included in labor in the consolidated statement of income) and capitalized into construction-in-progress (In millions of won) 2017 2016 2015 Current service cost ₩ 125,526 114,528 106,764 Net interest cost 2,170 3,615 3,257 ₩127,696 118,143 110,021 |
Details of plan assets | (6) Details of plan assets as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Equity instruments ₩ 15,567 13,640 Debt instruments 134,710 95,359 Short-term financial instruments, etc. 513,340 446,176 ₩ 663,617 555,175 |
Effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range | (7) As of December 31, 2017, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows: (In millions of won) 0.5% Increase 0.5% Decrease Discount rate ₩ (24,702 ) 26,808 Expected salary increase rate 26,988 (25,138 ) |
Retirement benefit obligation [Member] | |
Changes in defined benefit liabilities (assets) | (3) Changes in defined benefit obligations for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 595,667 525,269 Current service cost 125,526 114,528 Interest cost 15,991 13,441 Remeasurement - Demographic assumption (287 ) 677 - Financial assumption (20,731 ) (2,462 ) - Adjustment based on experience 11,561 6,229 Benefit paid (60,883 ) (55,350 ) Others 12,781 (6,665 ) Ending balance ₩ 679,625 595,667 |
Plan assets [member] | |
Changes in defined benefit liabilities (assets) | (4) Changes in plan assets for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Beginning balance ₩ 555,175 426,413 Interest income 13,821 9,826 Remeasurement (5,540 ) (6,320 ) Contributions 155,834 159,687 Benefit paid (60,006 ) (34,247 ) Others 4,333 (184 ) Ending balance ₩ 663,617 555,175 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Currency and interest rate swap contracts under cash flow hedge accounting | (1) Currency and interest rate swap contracts under cash flow hedge accounting as of December 31, 2017 are as follows: (In millions of won and thousands of foreign currencies) Borrowing Hedging Instrument(Hedged item) Hedged risk Financial Duration of Jul. 20, 2007 Fixed-to-fixed Foreign currency risk Morgan Stanley and four other banks Jul. 20, 2007 ~ Nov. 1, 2012 Fixed-to-fixed Foreign currency risk Standard Chartered and eight other banks Nov. 1, 2012~ May. 1, 2018 Mar. 7, 2013 Floating-to-fixed Foreign currency risk and interest rate risk DBS bank Mar. 7, 2013 ~ Mar. 7, 2020 Oct. 29, 2013 Fixed-to-fixed Foreign currency risk Korea Development Bank and others Oct. 29, 2013 ~ Oct. 26, 2018 Dec. 16, 2013 Fixed-to-fixed Foreign currency risk Deutsche bank Dec. 16, 2013 ~ Apr. 29, 2022 Dec. 20, 2016 Floating-to-fixed Interest rate risk Korea Development Bank Dec. 20, 2016~ Dec. 20, 2021 Jan. 30, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Nov. 10, 2016~ Jul. 30, 2019 Mar. 31, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Mar. 31, 2017- Mar. 31, 2020 Dec. 21, 2017 Floating-to-fixed Interest rate risk Korea Development Bank Dec. 5, 2017- Dec. 21, 2022 |
Details of fair values of the above derivatives recorded in assets or liabilities | (2) As of December 31, 2017, details of fair values of the above derivatives recorded in assets or liabilities are as follows: (In millions of won and thousands of foreign currencies) Hedging instrument(Hedged item) Cash flow Held for Embedded Fair value Non-current Redeemable convertible preferred shares issued by Bluehole INC. ₩ — — 222,257 222,257 Structured bond(face value of KRW 50,000) — 9,054 — 9,054 Fixed-to-fixed 21,554 — — 21,554 Floating-to-fixed 307 — — 307 Floating-to-fixed 43 — — 43 Floating-to-fixed (2 ) — — (2 ) Total assets ₩ 253,213 Current liabilities: Fixed-to-fixed ₩ (27,791 ) — — (27,791 ) Fixed-to-fixed (615 ) — — (615 ) Non-current Floating-to-fixed (7,613 ) — — (7,613 ) Fixed-to-fixed (3,106 ) — — (3,106 ) Floating-to-fixed (345 ) — — (345 ) Total liabilities ₩ (39,470 ) |
Share Capital and Capital Sur67
Share Capital and Capital Surplus (Deficit) and Others (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Number of authorized, issued and outstanding common shares and the details of capital surplus and others | The number of authorized, issued and outstanding common shares and the details of capital surplus (deficit) and others as of December 31, 2017 and 2016 are as follows: (In millions of won, except for share data) December 31, 2017 December 31, 2016 Number of authorized shares 220,000,000 220,000,000 Number of issued shares(*1) 80,745,711 80,745,711 Share capital Common share ₩ 44,639 44,639 Capital surplus (deficit) and others: Paid-in 2,915,887 2,915,887 Treasury shares(Note 24) (2,260,626 ) (2,260,626 ) Share option(Note 26) 414 — Others(*2) (857,912 ) (854,000 ) ₩ (202,237 ) (198,739 ) (*1) In 2002 and 2003, the Parent Company retired treasury shares with reduction of retained earnings before appropriation. As a result, the Parent Company’s outstanding shares have decreased without change in share capital. (*2) Others primarily consist of the excess of the consideration paid by the Group over the carrying values of net assets acquired from entities under common control. |
Details of shares outstanding | There were no changes in share capital during the years ended December 31, 2017 and 2016 and details of shares outstanding as of December 31, 2017 and 2016 are as follows: (In shares) 2017 2016 Issued shares Treasury Outstanding Issued shares Treasury Outstanding Shares outstanding 80,745,711 10,136,551 70,609,160 80,745,711 10,136,551 70,609,160 |
Treasury Shares (Tables)
Treasury Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of treasury share | Treasury shares as of December 31, 2017 and 2016 are as follows: (In millions of won, shares) December 31, 2017 December 31, 2016 Number of shares 10,136,551 10,136,551 Acquisition cost ₩ 2,260,626 2,260,626 |
Hybrid Bonds (Tables)
Hybrid Bonds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of hybrid bonds | Hybrid bonds classified as equity as of December 31, 2017 are as follows: (In millions of won) Type Issuance date Maturity(*1) Annual Amount Private hybrid bonds Unsecured subordinated bearer bond June 7, 2013 June 7, 2073 4.21 ₩ 400,000 Issuance costs (1,482 ) ₩ 398,518 Hybrid bonds issued by the Parent Company are classified as equity as there is no contractual obligation for delivery of financial assets to the bond holders. These are subordinated bonds which rank before common shares in the event of a liquidation or reorganization of the Parent Company. (*1) The Parent Company has a right to extend the maturity under the same terms at issuance without any notice or announcement. The Parent Company also has the right to defer interest payment at its sole discretion. (*2) Annual interest rate is calculated as yield rate of 5 year national bonds plus premium. According to the step-up |
Share option (Tables)
Share option (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Terms and Conditions Related to Grants of Share Options under Share Option Program | (1) At the shareholders’ meeting held on March 24, 2017, the Parent Company established a share option program that entitles key management personnel the option to purchase common shares of the Parent Company. The terms and conditions related to the grants of the share options under the share option program are as follows: Series 1-1 1-2 1-3 Grant date March 24, 2017 Types of shares to be issued 66,504 of registered common shares Grant method Reissue of treasury shares Number of shares (in shares) 22,168 22,168 22,168 Exercise price (in won) 246,750 266,490 287,810 Exercise period Mar. 25, 2019 ~ Mar. 25, 2020 ~ Mar. 25, 2021 ~ Vesting conditions 2 years’ service 3 years’ service 4 years’ service |
Summary of Share Compensation Expense Recognized | (2) Share compensation expense recognized during the year ended December 31, 2017 and the remaining share compensation expense to be recognized in subsequent periods are as follows: (In millions of won) Share During the year ended December 31, 2017 ₩ 414 In subsequent periods 977 ₩ 1,391 |
Summary of Inputs Used in Binomial Option Pricing Model | (3) The Group used binomial option pricing model in the measurement of the fair value of the share options at grant date and the inputs used in the model are as follows: 1-1 1-2 1-3 Risk-free interest rate 1.86 % 1.95 % 2.07 % Estimated option’s life 5 years 6 years 7 years Share price (Closing price on the preceding day in won) 262,500 262,500 262,500 Expected volatility 13.38 % 13.38 % 13.38 % Expected dividends 3.80 % 3.80 % 3.80 % Exercise price (in won) 246,750 266,490 287,810 Per share fair value of the option (in won) 27,015 20,240 15,480 |
Retained Earnings (Tables)
Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of retained earnings | (1) Retained earnings as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Appropriated: Legal reserve ₩ 22,320 22,320 Reserve for research & manpower development — 60,001 Reserve for business expansion 10,171,138 9,871,138 Reserve for technology development 3,071,300 2,826,300 13,264,758 12,779,759 Unappropriated 4,571,188 3,173,405 ₩ 17,835,946 15,953,164 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Details of reserves, net of taxes | (1) Details of reserves, net of taxes, as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Valuation gain on available-for-sale ₩ 168,211 12,534 Other comprehensive loss of investments in associates (320,060 ) (179,167 ) Valuation loss on derivatives (73,828 ) (96,418 ) Foreign currency translation differences for foreign operations (9,050 ) 36,868 ₩ (234,727 ) (226,183 ) |
Changes in reserves | (2) Changes in reserves for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Valuation gain on available-for-sale Other compre- Valuation gain Foreign currency Total Balance at January 1, 2017 ₩ 12,534 (179,167 ) (96,418 ) 36,868 (226,183 ) Changes, net of taxes 155,677 (140,893 ) 22,590 (45,918 ) (8,544 ) Balance at December 31, 2017 ₩ 168,211 (320,060 ) (73,828 ) (9,050 ) (234,727 ) (In millions of won) 2016 Valuation gain available-for-sale Other compre- Valuation Foreign currency Total Balance at January 1, 2016 ₩ 232,316 (169,520 ) (83,200 ) 29,707 9,303 Changes, net of taxes (219,782 ) (9,647 ) (13,218 ) 7,161 (235,486 ) Balance at December 31, 2016 ₩ 12,534 (179,167 ) (96,418 ) 36,868 (226,183 ) |
Valuation gain (loss) on available-for-sale financial assets [Member] | |
Changes in reserves | (3) Changes in valuation gain on available-for-sale (In millions of won) 2017 2016 Balance at January 1 ₩ 12,534 232,316 Amount recognized as other comprehensive income during the year, net of taxes 132,586 4,606 Amount reclassified through profit or loss, net of taxes 23,091 23,091 (224,388 ) Balance at December 31 ₩ 168,211 12,534 |
Valuation gain (loss) on derivatives [Member] | |
Changes in reserves | (4) Changes in valuation gain (loss) on derivatives for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Balance at January 1 ₩ (96,418 ) (83,200 ) Amount recognized as other comprehensive loss during the year, net of taxes 17,965 (12,213 ) Amount reclassified through profit or loss, net of taxes 4,625 (1,005 ) Balance at December 31 ₩ (73,828 ) (96,418 ) |
Other Operating Income and Ex73
Other Operating Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Details of other operating income and expenses | Details of other operating income andexpenses for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Other Operating Income: Gain on disposal of property and equipment and intangible assets 13,991 6,908 7,140 Others(*) 18,006 59,640 23,795 ₩ 31,997 66,548 30,935 Other Operating Expenses: Communication ₩ 27,973 31,196 43,979 Utilities 299,825 277,497 270,621 Taxes and dues 27,819 35,020 36,118 Repair 333,101 326,076 312,517 Research and development 395,276 344,787 315,790 Training 32,853 33,303 37,278 Bad debt for accounts receivable — trade 34,584 37,820 60,450 Travel 24,095 25,263 27,860 Supplies and other 111,170 113,930 176,248 Loss on disposal of property and equipment and intangible assets 60,086 63,797 21,392 Impairment loss on other investment securities 9,003 24,033 42,966 Impairment loss on property and equipment and intangible assets 54,946 24,506 35,845 Donations 112,634 96,633 72,454 Bad debt for accounts receivable — other 5,793 40,312 15,323 Others(*) 101,589 49,593 55,536 ₩ 1,630,747 1,523,766 1,524,377 (*) See Note 5-(2). |
Finance Income and Costs (Table
Finance Income and Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Details of finance income and costs | (1) Details of finance income and costs for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Finance Income: Interest income ₩ 76,045 54,353 45,884 Gain on sale of accounts receivable — trade 18,548 18,638 — Dividends 12,416 19,161 16,102 Gain on foreign currency transactions 13,676 14,186 18,923 Gain on foreign currency translations 7,110 5,085 5,090 Gain on disposal of long-term investment securities 4,890 459,349 10,786 Gain on valuation of derivatives 223,943 4,132 1,927 Reversal of impairment loss on available-for-sale 9,900 — — Gain relating to financial assets at fair value through profit or loss 33 25 — Gain relating to financial liability at fair value through profit or loss — 121 5,188 ₩ 366,561 575,050 103,900 Finance Costs: Interest expense ₩ 299,100 290,454 297,662 Loss on sale of accounts receivable — trade 9,682 — — Loss on foreign currency transactions 19,263 16,765 17,931 Loss on foreign currency translations 8,419 3,991 4,750 Loss on disposal of long-term investment securities 36,024 2,919 2,599 Loss on settlement of derivatives 10,031 3,428 4,845 Loss relating to financial liability at fair value through profit or loss 678 4,018 526 Impairment loss on long-term investment securities(*) 14,519 5,255 21,787 Other finance costs 35,900 — — ₩ 433,616 326,830 350,100 (*) See Note 30-(5). |
Details of interest income included in finance income | (2) Details of interest income included in finance income for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest income on cash equivalents and short-term financial instruments ₩ 28,130 20,203 20,009 Interest income on installment receivables and others 47,915 34,150 25,875 ₩ 76,045 54,353 45,884 |
Details of interest expenses included in finance costs | (3) Details of interest expenses included in finance costs for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest expense on borrowings ₩ 11,774 7,962 19,577 Interest expense on debentures 228,568 239,560 238,450 Interest on finance lease liabilities — — 58 Others 58,758 42,932 39,577 ₩ 299,100 290,454 297,662 |
Finance income and costs by category of financial instruments | (4) Finance income and costs by category of financial instruments for the years ended December 31, 2017, 2016 and 2015 are as follows. Bad debt expense (reversal of allowance for doubtful accounts) for accounts receivable — trade, loans and receivables are presented and explained separately in Note 7. (i) Finance income (In millions of won) 2017 2016 2015 Financial Assets: Financial assets at fair value through profit or loss ₩ 223,976 4,157 1,927 Available-for-sale 30,598 484,300 31,220 Loans and receivables 111,677 86,256 64,749 Sub-total 366,251 574,713 97,896 Financial Liabilities: Financial liabilities at fair value through profit or loss — 121 5,188 Financial liabilities measured at amortized cost 310 216 816 Sub-total 310 337 6,004 ₩ 366,561 575,050 103,900 (ii) Finance costs (In millions of won) 2017 2016 2015 Financial Assets: Financial assets at fair value through profit or loss ₩ — 2,791 4,188 Available-for-sale 86,445 8,174 24,386 Loans and receivables 37,040 15,810 15,861 Derivatives designated as hedging instruments — 637 657 Sub-total 123,485 27,412 45,092 Financial Liabilities: Financial liabilities at fair value through profit or loss 678 4,018 526 Financial liabilities measured at amortized cost 299,422 295,400 304,482 Derivatives designated as hedging instruments 10,031 — — Sub-total 310,131 299,418 305,008 ₩ 433,616 326,830 350,100 (iii) Other comprehensive income (loss) (In millions of won) 2017 2016 2015 Financial Assets: Available-for-sale ₩ 158,440 (223,981 ) (3,661 ) Derivatives designated as hedging instruments 1,554 (172 ) (3,248 ) Sub-total 159,994 (224,153 ) (6,909 ) Financial Liabilities: Derivatives designated as hedging instruments 21,032 (13,046 ) 1,977 Sub-total 21,032 (13,046 ) 1,977 ₩ 181,026 (237,199 ) (4,932 ) |
Details of impairment losses for financial assets | (5) Details of impairment losses for financial assets for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Available-for-sale ₩ 14,519 5,255 21,787 Accounts receivable — trade 34,584 37,820 60,450 Other receivables 5,793 40,312 15,323 ₩ 54,896 83,387 97,560 (*) This is included in other finance costs (See Note 30-(1)). |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of income tax expenses | (1) Income tax expenses for the years ended December 31, 2017, 2016 and 2015 consist of the following: (In millions of won) 2017 2016 2015 Current tax expense Current year ₩ 424,773 473,543 417,022 Current tax of prior years(*) (105,158 ) (11,925 ) (4,124 ) 319,615 461,618 412,898 Deferred tax expense Changes in net deferred tax assets 426,039 (25,580 ) 106,399 Others (tax rate differences, etc.) — — 183 Income tax expense ₩ 745,654 436,038 519,480 (*) Current tax of prior years are mainly composed of the income tax refund due to a change in the interpretation of the tax authority in relation to the income tax previously recognized by the Group. |
Difference between income taxes computed using the statutory corporate income tax rates and the recorded income taxes | (2) The difference between income taxes computed using the statutory corporate income tax rates and the recorded income taxes for the years ended December 31, 2017, 2016 and 2015 is attributable to the following: (In millions of won) 2017 2016 2015 Income taxes at statutory income tax rate ₩ 823,124 506,804 492,096 Non-taxable (40,080 ) (38,989 ) (85,589 ) Non-deductible 31,285 52,648 44,770 Tax credit and tax reduction (34,300 ) (29,484 ) (25,756 ) Changes in unrecognized deferred taxes 31,857 (84,276 ) 83,623 Others (income tax refund, etc.)(*) (66,232 ) 29,335 10,336 Income tax expense ₩ 745,654 436,038 519,480 (*) Based on the amendment to Korean Tax Law that was enacted in 2017, the income tax rate for taxable income in excess of ₩300,000 million is changed from 24.2% to 27.5%, which will be effective from January 1, 2018. The Group remeasured deferred tax assets and liabilities as a result of this rate change. |
Deferred taxes directly charged to (credited from) equity | (3) Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Valuation gain (loss) on available-for-sale ₩ (55,883 ) 82,993 2,461 Share of other comprehensive income (loss) of associates (260 ) 2 (63 ) Valuation gain (loss) on derivatives (3,019 ) 4,454 (448 ) Remeasurement of defined benefit liabilities 1,618 3,174 2,719 ₩ (57,544 ) 90,623 4,669 |
Details of the changes in deferred tax assets (liabilities) | (4) Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Beginning Deferred tax Directly charged Others Ending Deferred tax assets (liabilities) related to temporary differences: Allowance for doubtful accounts ₩ 61,911 5,091 — — 67,002 Accrued interest income (616 ) (1,851 ) — — (2,467 ) Available-for-sale 101,472 8,192 (55,883 ) — 53,781 Investments in subsidiaries, associates and joint ventures (476,098 ) (461,271 ) (260 ) — (937,629 ) Property and equipment (depreciation) (253,323 ) 17,980 — — (235,343 ) Provisions 7,448 (5,136 ) — — 2,312 Retirement benefit obligation 35,505 1,237 1,618 — 38,360 Valuation gain on derivatives 28,975 — (3,019 ) — 25,956 Gain or loss on foreign currency translation 19,369 2,562 — — 21,931 Reserve for research and manpower development (4,775 ) 2,388 — — (2,387 ) Goodwill 3,105 (938 ) — — 2,167 Others 34,911 (29,248 ) — (2,324 ) 3,339 (442,116 ) (460,994 ) (57,544 ) (2,324 ) (962,978 ) Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards Tax loss carryforwards 37,462 34,955 — — 72,417 ₩ (404,654 ) (426,039 ) (57,544 ) (2,324 ) (890,561 ) (In millions of won) 2016 Beginning Deferred tax Directly charged Ending Deferred tax assets (liabilities) related to temporary differences: Allowance for doubtful accounts ₩ 59,957 1,954 — 61,911 Accrued interest income (2,567 ) 1,951 — (616 ) Available-for-sale 30,365 (11,886 ) 82,993 101,472 Investments in subsidiaries, associates and joint ventures (355,273 ) (120,827 ) 2 (476,098 ) Property and equipment (depreciation) (327,572 ) 74,249 — (253,323 ) Provisions 2,485 4,963 — 7,448 Retirement benefit obligation 28,327 4,004 3,174 35,505 Valuation gain on derivatives 24,521 — 4,454 28,975 Gain or loss on foreign currency translation 19,517 (148 ) — 19,369 Reserve for research and manpower development (7,162 ) 2,387 — (4,775 ) Goodwill 3,713 (608 ) — 3,105 Unearned revenue (activation fees) 2,065 (2,065 ) — — Others (23,782 ) 58,693 — 34,911 (545,406 ) 12,667 90,623 (442,116 ) Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards Tax loss carryforwards 24,549 12,913 — 37,462 ₩ (520,857 ) 25,580 90,623 (404,654 ) |
Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are not recognized as deferred tax assets | (5) Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are not recognized as deferred tax assets, in the consolidated statements of financial position as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 December 31, 2016 Allowance for doubtful accounts ₩ 88,521 165,935 Investments in subsidiaries, associates and joint ventures 168,268 228,025 Other temporary differences 425,653 320,260 Unused tax loss carryforwards 921,309 755,050 Unused tax credit carryforwards 4,092 1,211 |
Unused tax loss carryforwards and unused tax credit carryforwards which are not recognized as deferred tax assets | (6) The amount of unused tax loss carryforwards and unused tax credit carryforwards which are not recognized as deferred tax assets as of December 31, 2017 are expiring within: (In millions of won) Unused tax loss carryforwards Unused tax credit carryforwards Less than 1 year ₩ — 869 1 ~ 2 years 7,686 101 2 ~ 3 years 358,237 119 More than 3 years 555,386 3,003 ₩ 921,309 4,092 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of basic earnings per share | 1) Basic earnings per share for the years ended December 31, 2017, 2016 and 2015 are calculated as follows: (In millions of won, shares) 2017 2016 2015 Basic earnings per share attributable to owners of the Parent Company: Profit attributable to owners of the Parent Company ₩ 2,599,829 1,675,967 1,518,604 Interest on hybrid bonds (16,840 ) (16,840 ) (16,840 ) Profit attributable to owners of the Parent Company on common shares 2,582,989 1,659,127 1,501,764 Weighted average number of common shares outstanding 70,609,160 70,609,160 71,551,966 Basic earnings per share (in won) ₩ 36,582 23,497 20,988 |
Weighted average number of common shares outstanding | 2) The weighted average number of common shares outstanding for the years ended December 31, 2017, 2016 and 2015 are calculated as follows: (In shares) 2017 2016 2015 Issued common shares at January 1 80,745,711 80,745,711 80,745,711 Effect of treasury shares (10,136,551 ) (10,136,551 ) (9,193,745 ) Weighted average number of common shares outstanding at December 31 70,609,160 70,609,160 71,551,966 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Details of dividend declared | Details of dividend declared for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won, except for face value and share data) Year Dividend type Number of Face value Dividend Dividends 2017 Cash dividends (Interim) 70,609,160 500 200 % ₩ 70,609 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 706,091 2016 Cash dividends (Interim) 70,609,160 500 200 % ₩ 70,609 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 706,091 2015 Cash dividends (Interim) 72,629,160 500 200 % ₩ 72,629 Cash dividends (Year-end) 70,609,160 500 1,800 % 635,482 ₩ 708,111 |
Dividends yield ratios | (2) Dividends yield ratio Dividends yield ratios for the years ended December 31, 2017, 2016 and 2015 are as follows: (In won) Year Dividend type Dividend per share Closing price at year-end Dividend yield ratio 2017 Cash dividends 10,000 267,000 3.75% 2016 Cash dividends 10,000 224,000 4.46% 2015 Cash dividends 10,000 215,500 4.64% |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Maximum credit exposure | The maximum credit exposure as of December 31, 2017 and 2016 are as follows: (In millions of won) 2017 2016 Cash and cash equivalents ₩ 1,457,416 1,505,082 Financial instruments 618,002 469,705 Available-for-sale 19,928 6,755 Accounts receivable — trade 2,138,755 2,261,311 Loans and other receivables 1,962,083 1,701,249 Derivative financial assets 30,956 214,770 ₩ 6,227,140 6,158,872 |
Contractual maturities of financial liabilities | Contractual maturities of financial liabilities as of December 31, 2017 are as follows: (In millions of won) Carrying Contractual Less than 1 - 5 More than Accounts payable — trade ₩ 351,711 351,711 351,711 — — Borrowings(*1) 382,817 397,776 177,910 219,866 — Debentures(*1) 7,086,187 8,230,952 1,682,206 3,675,178 2,873,568 Accounts payable — other and others(*2) 4,865,519 5,030,105 3,519,489 1,093,611 417,005 ₩ 12,686,234 14,010,544 5,731,316 4,988,655 3,290,573 The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at different amounts. (*1) Includes interest payables. (*2) The Group provides with USD 12,240,000 of payment guarantees for Celcom Planet, one of the joint ventures of the Group, in relation to its borrowings. The contractual cash flows for accounts payable — other and others include the maximum amount that the Group is required to pay in connection with the guarantees. |
Periods in which cash flows from cash flow hedge derivatives are expected to occur | As of December 31, 2017, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows: (In millions of won) Carrying Contractual Less than 1 year 1 - 5 years More than 5 years Assets ₩ 21,902 17,118 7,446 28,075 (18,403 ) Liabilities (39,470 ) (40,220 ) (28,960 ) (11,260 ) — ₩ (17,568) (23,102) (21,514 ) 16,815 (18,403 ) |
Debt-equity ratio | Debt-equity ratio as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, December 31, Total liabilities ₩ 15,399,474 15,181,233 Total equity 18,029,195 16,116,430 Debt-equity ratios 85.41 % 94.20 % |
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy | Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2017 are as follows: (In millions of won) December 31, 2017 Carrying Level 1 Level 2 Level 3 Total Financial assets that are measured at fair value Financial assets at fair value through profit or loss ₩ 328,314 — 106,057 222,257 328,314 Derivative financial assets 21,902 — 21,902 — 21,902 Available-for-sale 734,487 589,202 47,383 97,902 734,487 ₩ 1,084,703 589,202 175,342 320,159 1,084,703 Financial liabilities that are measured at fair value Financial liabilities at fair value through profit or loss ₩ 60,278 — 60,278 — 60,278 Derivative financial liabilities 39,470 — 39,470 — 39,470 ₩ 99,748 — 99,748 — 99,748 Financial liabilities that are not measured at fair value Borrowings ₩ 382,817 — 383,748 — 383,748 Debentures 7,025,909 — 7,325,370 — 7,325,370 Long-term payables — other 1,649,466 — 1,766,451 — 1,766,451 ₩ 9,058,192 — 9,475,569 — 9,475,569 2) Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2016 are as follows: (In millions of won) December 31, 2016 Carrying Level 1 Level 2 Level 3 Total Financial assets that are measured at fair value: Financial assets at fair value through profit or loss ₩ 7,368 — 7,368 — 7,368 Derivative financial assets 207,402 — 207,402 — 207,402 Available-for-sale 741,285 526,363 107,364 107,558 741,285 ₩ 956,055 526,363 322,134 107,558 956,055 Financial liabilities that are measured at fair value: Financial liabilities at fair value through profit or loss ₩ 59,600 — 59,600 — 59,600 Derivative financial liabilities 87,153 — 87,153 — 87,153 ₩ 146,753 — 146,753 — 146,753 Financial liabilities that are not measured at fair value: Borrowings ₩ 175,521 — 177,600 — 177,600 Debentures 7,134,606 — 7,568,361 — 7,568,361 Long-term payables — other 1,926,363 — 2,103,788 — 2,103,788 ₩ 9,236,490 — 9,849,749 — 9,849,749 |
Interest rates used by the group for the fair value measurement | Interest rates used by the Group for the fair value measurement as of December 31, 2017 are as follows: Interest rate Derivative instruments 1.54% ~ 2.67% Borrowings and debentures 2.48% ~ 2.55% Long-term payables — other 2.23% ~ 2.60% |
Carrying amount of financial instruments recognized of which offset agreements are applicable | Carrying amount of financial instruments recognized of which offset agreements are applicable as of December 31, 2017 and 2016 are as follows: (In millions of won) 2017 Gross Amount Net financial Relevant amount not Net Financial instruments Financial assets: Derivatives(*) ₩ 26,645 — 26,645 (19,875 ) 6,770 Accounts receivable — trade and others 93,146 (92,409 ) 737 — 737 ₩ 119,791 (92,409 ) 27,382 (19,875 ) 7,507 Financial liabilities: Derivatives(*) ₩ 19,875 — 19,875 (19,875 ) — Accounts payable — other and others 92,409 (92,409 ) — — — ₩ 112,284 (92,409 ) 19,875 (19,875 ) — (In millions of won) 2016 Gross Amount Net financial Relevant amount not Net Financial instruments Financial assets: Derivatives(*) ₩ 87,566 — 87,566 (87,153 ) 413 Accounts receivable — trade and others 114,135 (103,852 ) 10,283 — 10,283 ₩ 201,701 (103,852 ) 97,849 (87,153 ) 10,696 Financial liabilities: Derivatives(*) ₩ 87,153 — 87,153 (87,153 ) — Accounts payable — other and others 103,852 (103,852 ) — — — ₩ 191,005 (103,852 ) 87,153 (87,153 ) — (*) The Group entered into derivative contracts which include enforceable master netting arrangement in accordance with International Swap and Derivatives Association (ISDA). Generally, all contracts made with the identical currencies are settled from one party to another by combining one net amount. In this case, all contracts are liquidated and paid off at net amount by evaluating liquidation value if credit events such as bankruptcy occur. |
Currency risk [member] | |
Monetary assets and liabilities denominated in foreign currencies | Monetary assets and liabilities denominated in foreign currencies as of December 31, 2017 are as follows: (In millions of won, thousands of foreign currencies) Assets Liabilities Foreign currencies Won Foreign currencies Won USD 124,901 ₩ 133,836 1,817,808 ₩ 1,947,599 EUR 15,669 20,044 63 80 JPY 596,059 5,658 169,729 1,611 Others — 530 — 195 ₩ 160,068 ₩ 1,949,485 |
Impact on income before income tax of a hypothetical change in exchange rates | As of December 31, 2017, a hypothetical change in exchange rates by 10% would have increase (reduce) the Group’s income before income tax as follows: (In millions of won) If increased by 10% If decreased by 10% USD ₩ 5,590 (5,590 ) EUR 1,997 (1,997 ) JPY 405 (405 ) Others 34 (34 ) ₩ 8,026 (8,026 ) |
Available- for-sale financial assets [Member] | Level 3 [member] | |
Fair value of assets | There have been no transfers from Level 2 to Level 1 in 2017 and changes of financial assets classified as Level 3 for the year ended December 31, 2017 are as follows: (In millions of won) Balance at Valuation Transfer Other compre- Disposal Balance at ending Financial assets at fair value through profit or loss(*) ₩ — 222,257 — — — 222,257 Available-for-sale 107,558 — 3,938 (8,942 ) (4,652 ) 97,902 (*) The Group holds redeemable convertible preferred shares issued by Bluehole INC. The conversion rights attached to the investments are bifurcated from the host contract as embedded derivatives and the Group recognized ₩222,257 million as financial assets at FVTPL and gain on valuation of derivatives, respectively, as of and during the year ended December 31, 2017. The host contract was recognized as available-for-sale |
Related Parties and Others (Tab
Related Parties and Others (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Compensation for the key management | The compensation given to such key management for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Salaries ₩ 2,169 1,645 1,971 Defined benefits plan expenses 258 424 626 Share option 414 — — ₩ 2,841 2,069 2,597 |
Transactions with related parties | Transactions with related parties for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 Scope Company Operating Operating Acquisition of Collection Ultimate Controlling Entity SK Holdings Co., Ltd.(*1) ₩ 25,049 600,600 283,556 — Associates F&U Credit information Co., Ltd. 3,431 52,150 153 — HappyNarae Co., Ltd. 3,025 29,276 68,472 — SK hynix Inc(*2) 123,873 251 — — KEB HanaCard Co., Ltd. 17,873 15,045 — — Others(*3) 10,720 33,389 940 204 158,922 130,111 69,565 204 Others SK Engineering & Construction Co., Ltd. 5,865 1,077 — — SK Networks Co., Ltd. 21,694 1,220,251 671 — SK Networks Services Co., Ltd. 510 96,949 6,346 — SK Telesys Co., Ltd. 417 51,394 152,659 — SK TNS Co., Ltd. 137 37,051 494,621 — SK Energy Co., Ltd. 8,505 779 — — SK Gas Co., Ltd. 2,727 4 — — SK Innovation Co., Ltd. 7,639 950 — — SK Shipping Co., Ltd. 3,183 35 — — Ko-one 5,164 44 — — SK infosec Co., Ltd. 1,185 52,634 15,648 — SKC INFRA SERVICE Co., Ltd. 19 46,900 47,163 — Others 18,233 28,209 17 — 75,278 1,536,277 717,125 — Total ₩ 259,249 2,266,988 1,070,246 204 (*1) Operating expense and others include ₩203,635 million of dividends paid by the Parent Company. (*2) Operating revenue and others include ₩87,660 million of dividends received from SK Hynix Inc. which was deducted from the investment in associates. (*3) Operating revenue and others include ₩6,597 million of dividends received from the Korea IT Fund and others. (In millions of won) 2016 Scope Company Operating Operating Acquisition of property and Loans Collection Ultimate Controlling Entity SK Holdings Co., Ltd.(*1) ₩ 23,104 652,855 235,502 — — Associates F&U Credit information Co., Ltd. 2,865 47,905 — — — HappyNarae Co., Ltd. 304 15,506 38,984 — — SK hynix Inc.(*2) 100,861 306 — — — KEB HanaCard Co., Ltd. 19,730 14,804 — — — Others(*3) 8,018 21,853 1,573 1,100 3,194 131,778 100,374 40,557 1,100 3,194 Others SK Engineering & Construction Co., Ltd. 5,916 1,739 10,694 — — SK Networks Co., Ltd. 13,756 1,131,567 — — — SK Networks Services Co., Ltd. 1,248 94,906 6,793 — — SK Telesys Co., Ltd. 419 52,488 142,605 — — SK TNS Co., Ltd. 109 48,192 387,496 — — SK Energy Co., Ltd. 7,670 834 — — — SK Gas Co., Ltd. 2,500 4 — — — SK Innovation Co., Ltd. 9,757 915 1,080 — — SK Shipping Co., Ltd. 5,435 — — — — Ko-one 6,005 46 — — — SK infosec Co., Ltd. 230 53,068 19,882 — — SKC INFRA SERVICE Co., Ltd. 43 30,663 32,141 — — Others 13,437 17,626 246 — — 66,525 1,432,048 600,937 — — Total ₩ 221,407 2,185,277 876,996 1,100 3,194 (*1) Operating expense and others include ₩203,635 million of dividends paid by the Parent Company. (*2) Operating revenue and others include ₩73,050 million of dividends paid by the associate which was deducted from the investment in associates. (*3) Operating revenue and others include ₩6,082 million of dividends received from the Korea IT Fund. (In millions of won) 2015 Scope Company Operating others Operating Acquisition of Loans Collection Ultimate Controlling Entity SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*1) ₩ 20,260 324,078 236,414 — — SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.)(*2,3) 1,299 212,378 117 — — 21,559 536,456 236,531 — — Associates F&U Credit information Co., Ltd. 2,510 43,967 — — — HappyNarae Co., Ltd. 297 6,886 13,495 — — SK hynix Inc.(*4) 55,949 2,384 — — — SK Wyverns Baseball Club., Ltd. 3,849 18,544 — — 204 KEB HanaCard Co., Ltd. 21,414 16,057 — — — Xian Tianlong Science and Technology Co., Ltd. — — — 8,287 — Others(*5) 6,397 11,917 1,864 690 — 90,416 99,755 15,359 8,977 204 Other SK Engineering & Construction Co., Ltd. 15,598 27,243 240,701 — — SK Networks Co., Ltd. 11,923 1,257,975 2 — — SK Networks Services Co., Ltd. 10,491 94,097 6,472 — — SK Telesys Co., Ltd. 397 48,900 141,870 — — SK Energy Co., Ltd. 9,930 978 — — — SK Gas Co., Ltd. 3,561 2 — — — Others 29,409 71,314 194,945 — — 81,309 1,500,509 583,990 — — Total ₩ 193,284 2,136,720 835,880 8,977 204 (*1) On August 1, 2015, SK C&C Co., Ltd., the ultimate controlling entity of the Parent Company merged with SK Holdings Co., Ltd., its equity method investee, and changed its name to SK Holdings Co., Ltd. (*2) These relates to transactions occurred before July 31, 2015, the date of merger with SK C&C Co., Ltd. (*3) Operating expense and others include ₩191,416 million of dividends paid by the Parent Company. (*4) Operating revenue and others include ₩43,830 million of dividends paid by SK hynix Inc. and was deducted from the investment in associates. (*5) Operating revenue and others include ₩2,103 million and ₩457 million of dividends paid by Korea IT Fund and UniSK, respectively, and was deducted from the investments in associates. |
Account balances with related parties | (4) Account balances with related parties as of December 31, 2017 and 2016 are as follows: (In millions of won) December 31, 2017 Accounts receivable Accounts payable Scope Company Loans Accounts receivable-trade Accounts payable-other Ultimate Controlling Entity SK Holdings Co., Ltd. ₩ — 2,068 148,066 Associates HappyNarae Co., Ltd. — 15 6,865 F&U Credit information Co., Ltd. — 21 1,612 SK hynix Inc. — 2,803 94 Wave City Development Co., Ltd. — 38,412 — Daehan Kanggun BcN Co., Ltd.(*) 22,147 — — KEB HanaCard Co., Ltd. — 1,427 11,099 S.M. Culture & Contents Co., Ltd. — 448 8,963 Xian Tianlong Science and Technology Co., Ltd. 7,032 — — Others 611 2,272 1,164 29,790 45,398 29,797 Other SK Engineering & Construction Co., Ltd. — 2,033 69 SK Networks. Co., Ltd. — 3,050 267,297 SK Networks Services Co., Ltd. — 15 9,522 SK Telesys Co., Ltd. — 36 58,346 SK TNS Co., Ltd. — 3 140,311 SK Innovation Co., Ltd. — 4,112 599 SK Energy Co., Ltd. — 2,965 582 SK Gas Co., Ltd. — 1,941 9 Others — 2,998 27,318 — 17,153 504,053 Total ₩ 29,790 64,619 681,916 (*) The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd as of December 31, 2017. (In millions of won) December 31, 2016 Accounts receivable Accounts payable Scope Company Loans Accounts receivable-trade Accounts payable-other Ultimate Controlling Entity SK Holdings Co., Ltd. ₩ — 3,519 149,574 Associates HappyNarae Co., Ltd. — 18 21,063 F&U Credit information Co., Ltd. — 34 1,328 SK hynix Inc. — 22,379 92 Wave City Development Co., Ltd. — 38,412 — Daehan Kanggun BcN Co., Ltd.(*) 22,147 — — KEB HanaCard Co., Ltd. — 1,619 7,676 Xian Tianlong Science and Technology Co., Ltd. 8,287 — — Others 813 4,191 945 31,247 66,653 31,104 Other SK Engineering & Construction Co., Ltd. — 1,808 4,975 SK Networks. Co., Ltd. — 3,254 247,728 SK Networks Services Co., Ltd. — 13 13,913 SK Telesys Co., Ltd. — 20 24,918 SK TNS Co., Ltd. — 3 68,276 SK Innovation Co., Ltd. — 1,350 892 SK Energy Co., Ltd. — 1,213 113 SK Gas Co., Ltd. — 1,769 9 Others — 2,783 30,209 — 12,213 391,033 Total ₩ 31,247 82,385 571,711 (*) The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd. as of December 31, 2016. (5) SK m&service Co., Ltd., a subsidiary of the Parent Company, has entered into a performance agreement with SK Energy Co., Ltd. and provided a blank note to SK Energy Co., Ltd., with regard to this transaction. (6) As of December 31, 2017, the Group provides with USD 12,240,000 of payment guarantees for the borrowings of the Celcom Planet, the joint ventures of the Group. (7) There were additional investments in associates and joint ventures during the years ended December 31, 2017 and 2016 as presented in Note 12. |
Statements of Cash Flows (Table
Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Adjustments for income and expenses from operating activities | Adjustments for income and expenses from operating activities for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Interest income ₩ (76,045 ) (54,353 ) (45,884 ) Dividend (12,416 ) (19,161 ) (16,102 ) Gain on foreign currency translation (7,110 ) (5,085 ) (5,090 ) Gain on disposal of long-term investment securities (4,890 ) (459,349 ) (10,786 ) Gain on valuation of derivatives (223,943 ) (4,132 ) (1,927 ) Gain relating to investments in associates and joint ventures, net (2,245,732 ) (544,501 ) (786,140 ) Gain on sale of accounts receivable — trade (18,548 ) (18,638 ) — Gain on disposal of property and equipment and intangible assets (13,991 ) (6,908 ) (7,140 ) Gain relating to financial assets at fair value through profit or loss (33 ) (25 ) — Gain related to financial liabilities at fair value through profit or loss — (121 ) (5,188 ) Reversal of impairment loss on available-for-sale (9,900 ) — — Other income (1,129 ) (2,123 ) (7,577 ) Interest expenses 299,100 290,454 297,662 Loss on foreign currency translation 8,419 3,991 4,750 Loss on disposal of long-term investment securities 36,024 2,919 2,599 Other finance costs 14,519 5,255 21,787 Loss on sale of accounts receivable — trade 9,682 — — Loss on settlement of derivatives 10,031 3,428 4,845 Income tax expense 745,654 436,038 519,480 Expense related to defined benefit plan 127,696 118,143 110,021 Share option 414 — — Depreciation and amortization 3,247,519 3,068,558 2,993,486 Bad debt expense 34,584 37,820 60,450 Loss on disposal of property and equipment and intangible assets 60,086 63,797 21,392 Impairment loss on property and equipment and intangible assets 54,946 24,506 35,845 Loss relating to financial liabilities at fair value through profit or loss 678 4,018 526 Bad debt for accounts receivable — other 5,793 40,312 15,323 Loss on impairment of investment assets 9,003 24,033 42,966 Other expenses 46,353 30,685 4,845 ₩ 2,096,764 3,039,561 3,250,143 |
Changes in assets and liabilities from operating activities | Changes in assets and liabilities from operating activities for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Accounts receivable — trade ₩ 46,144 88,549 7,554 Accounts receivable — other (159,960 ) (446,286 ) (11,108 ) Accrued income 14 445 116 Advance payments (1,269 ) 47,615 (35,906 ) Prepaid expenses (28,362 ) (30,311 ) (40,464 ) Value-Added Tax refundable (3,080 ) (4,587 ) 1,385 Inventories (17,958 ) 798 (7,814 ) Long-term accounts receivable — other (137,979 ) (147,117 ) — Guarantee deposits 14,696 4,844 (11,238 ) Accounts payable — trade (26,151 ) 75,585 12,442 Accounts payable — other 134,542 316,464 (107,114 ) Advanced receipts (13,470 ) 37,429 6,421 Withholdings (13,041 ) 107,516 (191,209 ) Deposits received (4,916 ) (2,153 ) (9,661 ) Accrued expenses 116,065 173,072 (28,845 ) Value-Added Tax payable 7,505 (4,072 ) 3,494 Unearned revenue (339 ) (36,209 ) (115,187 ) Provisions (20,488 ) 20,235 (30,562 ) Long-term provisions (2,449 ) 4,115 (4,447 ) Plan assets (95,828 ) (125,440 ) (67,831 ) Retirement benefit payment (60,883 ) (55,350 ) (58,513 ) Others 5,739 (11,378 ) 2,753 ₩(261,468) 13,764 (685,734 ) |
Significant non-cash transactions | Significant non-cash (In millions of won) 2017 2016 2015 Increase of accounts payable — other related to acquisition of property and equipment and intangible assets ₩ 44,214 1,511,913 39,973 |
Reconciliation of Lliabilities Arising from Financing Activities | Reconciliation of liabilities arising from financing activities for the year ended December 31, 2017 is as follows: (In millions of won) January 1, Cash Non-cash December 31, Exchange rate Fair value changes Other changes Total liabilities from financing Short-term borrowings ₩ 2,614 127,386 — — — 130,000 Long-term borrowings 172,906 87,299 (7,898 ) — 510 252,817 Debentures 7,194,207 130,558 (245,456 ) — 6,878 7,086,187 Long-term payables — other 1,918,024 (305,476 ) — — 28,533 1,641,081 Derivative financial liabilities 87,153 (105,269 ) 13,281 39,267 5,038 39,470 Derivative financial assets (214,770 ) 188 922 (40,235 ) 682 (253,213 ) ₩ 9,160,134 (65,314 ) (239,151 ) (968 ) 41,641 8,896,342 Other cash flows from financing Payments of cash dividends ₩ (706,091 ) Payments of interest on hybrid bond (16,840 ) Transactions with non-controlling (38,373 ) (761,304 ) Total ₩ (826,618 ) |
Cash Dividends paid to the Pa81
Cash Dividends paid to the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Cash Dividends Received from Consolidated Subsidiaries and Associates | Cash dividends received from the consolidated subsidiaries and associates for the years ended December 31, 2017, 2016 and 2015 are as follows: (In millions of won) 2017 2016 2015 Cash dividends received from consolidated subsidiaries ₩ — 15,693 — Cash dividends received from associates 89,063 79,132 46,390 ₩ 89,063 94,825 46,390 |
Reporting Entity - Total Issued
Reporting Entity - Total Issued Shares Held by Shareholders (Detail) | Dec. 31, 2017shares |
Disclosure of classes of share capital [line items] | |
Number of shares | 80,745,711 |
Percentage of total shares issued (%) | 100.00% |
SK Holdings Co., Ltd. [member] | |
Disclosure of classes of share capital [line items] | |
Number of shares | 20,363,452 |
Percentage of total shares issued (%) | 25.22% |
National pension service [member] | |
Disclosure of classes of share capital [line items] | |
Number of shares | 7,392,350 |
Percentage of total shares issued (%) | 9.16% |
Institutional investors and other minority shareholders [member] | |
Disclosure of classes of share capital [line items] | |
Number of shares | 42,853,358 |
Percentage of total shares issued (%) | 53.07% |
Treasury shares [member] | |
Disclosure of classes of share capital [line items] | |
Number of shares | 10,136,551 |
Percentage of total shares issued (%) | 12.55% |
Reporting Entity - List of Subs
Reporting Entity - List of Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
SK Telink Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Telink Co., Ltd. | |
Location | Korea | |
Primary business | Telecommunication and MVNO service | |
Ownership | 100.00% | 85.90% |
SK Communications Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Communications Co., Ltd. | |
Location | Korea | |
Primary business | Internet website services | |
Ownership | 100.00% | 64.50% |
SK Broadband Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Broadband Co., Ltd | |
Location | Korea | |
Primary business | Telecommunication services | |
Ownership | 100.00% | 100.00% |
PS&Marketing Corporation [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | PS&Marketing Corporation | |
Location | Korea | |
Primary business | Communications device retail business | |
Ownership | 100.00% | 100.00% |
SERVICEACE Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SERVICEACE Co., Ltd. | |
Location | Korea | |
Primary business | Customer center management service | |
Ownership | 100.00% | 100.00% |
SERVICE TOP Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SERVICE TOP Co., Ltd. | |
Location | Korea | |
Primary business | Customer center management service | |
Ownership | 100.00% | 100.00% |
Network O&S Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Network O&S Co., Ltd. | |
Location | Korea | |
Primary business | Base station maintenance service | |
Ownership | 100.00% | 100.00% |
SK Planet Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Planet Co., Ltd. | |
Location | Korea | |
Primary business | Telecommunication service | |
Ownership | 98.10% | 98.10% |
Iriver Limted [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | IRIVER LIMITED | |
Location | Korea | |
Primary business | Manufacturing digital audio players and other portable media devices. | |
Ownership | 45.90% | 48.90% |
SK Telecom China Holdings Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Telecom China Holdings Co., Ltd. | |
Location | China | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
SK Global Healthcare Business Group, Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Global Healthcare Business Group, Ltd. | |
Location | Hong Kong | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
SKT Vietnam PTE. Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SKT Vietnam PTE. Ltd. | |
Location | Singapore | |
Primary business | Telecommunication service | |
Ownership | 73.30% | 73.30% |
SKT Americas, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SKT Americas, Inc. | |
Location | USA | |
Primary business | Information gathering and consulting | |
Ownership | 100.00% | 100.00% |
YTK Investment Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | YTK Investment Ltd. | |
Location | Cayman Islands | |
Primary business | Investment association | |
Ownership | 100.00% | 100.00% |
Atlas investment [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Atlas Investment | |
Location | Cayman Islands | |
Primary business | Investment association | |
Ownership | 100.00% | 100.00% |
Entrix Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Entrix Co., Ltd. | |
Location | Korea | |
Primary business | Cloud streaming services | |
Ownership | 100.00% | |
SK techx Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK techx Co., Ltd. | |
Location | Korea | |
Primary business | System software development and supply | |
Ownership | 100.00% | 100.00% |
One Store Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | One Store Co., Ltd. | |
Location | Korea | |
Primary business | Telecommunication services | |
Ownership | 65.50% | 65.50% |
SK m&service Co., Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK m&service Co., Ltd. (formerly, M&Service Co., Ltd.) | |
Location | Korea | |
Primary business | Data base and internet website service | |
Ownership | 100.00% | 100.00% |
SK Planet Japan, K. K. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Planet Japan, K. K. | |
Location | Japan | |
Primary business | Digital contents sourcing service | |
Ownership | 79.50% | 100.00% |
SK Planet Global PTE. Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Planet Global PTE. Ltd. | |
Location | Singapore | |
Primary business | Digital contents sourcing service | |
Ownership | 100.00% | 100.00% |
SKP GLOBAL HOLDINGS PTE. LTD. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SKP GLOBAL HOLDINGS PTE. LTD. | |
Location | Singapore | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
SKP America LLC. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SKP America LLC. | |
Location | USA | |
Primary business | Digital contents sourcing service | |
Ownership | 100.00% | 100.00% |
shopkick Management Company, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | shopkick Management Company, Inc. | |
Location | USA | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
shopkick, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | shopkick, Inc. | |
Location | USA | |
Primary business | Reward points-based in-store shopping app development | |
Ownership | 100.00% | 100.00% |
Planet11 E-commerce Solutions India Pvt. Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Planet11 E-commerceSolutions India Pvt. Ltd. | |
Location | India | |
Primary business | Electronic commerce platform service | |
Ownership | 99.00% | |
11street [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | 11street (Thailand) Co., Ltd. | |
Location | Thailand | |
Primary business | Electronic commerce | |
Ownership | 100.00% | 100.00% |
Hello Nature Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Hello Nature Ltd. | |
Location | Korea | |
Primary business | Retail of agro-fisheries and livestock | |
Ownership | 100.00% | 100.00% |
iriver Enterprise Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | iriver Enterprise Ltd. | |
Location | Hong Kong | |
Primary business | Management of Chinese subsidiary | |
Ownership | 100.00% | 100.00% |
iriver Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | iriver Inc. | |
Location | USA | |
Primary business | Marketing and sales in North America | |
Ownership | 100.00% | 100.00% |
iriver China Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | iriver China Co., Ltd. | |
Location | China | |
Primary business | Sales and manufacturing MP3,4 in China | |
Ownership | 100.00% | 100.00% |
Dongguan iriver Electronics Co., Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Dongguan iriver Electronics Co., Ltd. | |
Location | China | |
Primary business | Sales and manufacturing e-book in China | |
Ownership | 100.00% | 100.00% |
groovers JP Ltd. [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | groovers JP Ltd. | |
Location | Japan | |
Primary business | Digital music contents sourcing and distribution service | |
Ownership | 100.00% | 100.00% |
S.M. LIFE DESIGN COMPANY JAPAN INC [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | S.M. LIFE DESIGN COMPANY JAPAN INC. | |
Location | Japan | |
Primary business | Selling of goods in Japan | |
Ownership | 100.00% | |
S.M. Mobile Communications JAPAN Inc [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | S.M. Mobile Communications JAPAN Inc. | |
Location | Japan | |
Primary business | Digital contents service | |
Ownership | 100.00% | |
NSOK Co., Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | NSOK Co., Ltd. (formerly, Neosnetworks Co., Ltd.) | |
Location | Korea | |
Primary business | Guarding of facilities | |
Ownership | 100.00% | 100.00% |
K-net culture and contents venture fund [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | K-net Culture and Contents Venture Fund | |
Location | Korea | |
Primary business | Capital investing in startups | |
Ownership | 59.00% | 59.00% |
Home and Service Co., Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Home & Service Co., Ltd. | |
Location | Korea | |
Primary business | Operation of information and communication facility | |
Ownership | 100.00% | |
SK stoa Co., Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK stoa Co., Ltd | |
Location | Korea | |
Primary business | Other telecommunication retail business | |
Ownership | 100.00% | |
SK Telecom Innovation Fund, L.P. (formerly, Technology Innovation Partners, L.P.) [member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Telecom Innovation Fund, L.P. | |
Location | USA | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
SK Telecom China Fund I L.P. [Member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | SK Telecom China Fund I L.P. | |
Location | Cayman Islands | |
Primary business | Investment | |
Ownership | 100.00% | 100.00% |
Stonebridge Cinema Fund [Member] | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary | Stonebridge Cinema Fund | |
Location | Korea | |
Primary business | Capital investing in startups | |
Ownership | 60.00% |
Reporting Entity - List of Su84
Reporting Entity - List of Subsidiaries (Parenthetical) (Detail) - KRW (₩) ₩ / shares in Units, ₩ in Millions | Dec. 14, 2017 | Feb. 07, 2017 | Dec. 31, 2017 |
SK Telink Co., Ltd. [member] | |||
Disclosure of subsidiaries [line items] | |||
Price per share in cash of shares acquired | ₩ 270,583 | ||
Number of shares acquired, purchase price | ₩ 35,281 | ||
SK Communications Co., Ltd. [member] | |||
Disclosure of subsidiaries [line items] | |||
Price per share in cash of shares acquired | ₩ 2,814 | ||
Number of shares acquired, purchase price | ₩ 41,550 | ||
Iriver Limted [member] | Top of range [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of voting rights | 50.00% |
Reporting Entity - Condensed Fi
Reporting Entity - Condensed Financial Information of the Significant Subsidiaries (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of subsidiaries [line items] | ||||
Total assets | ₩ 33,428,669 | ₩ 31,297,663 | ||
Total liabilities | 15,399,474 | 15,181,233 | ||
Total equity (deficit) | 18,029,195 | 16,116,430 | ₩ 15,374,096 | ₩ 15,248,270 |
Revenue | 17,552,010 | 17,158,364 | 17,167,669 | |
Profit (loss) | 2,657,595 | 1,660,101 | 1,515,885 | |
SK Telink Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 455,685 | 440,956 | 309,955 | |
Total liabilities | 104,727 | 122,741 | 113,878 | |
Total equity (deficit) | 350,958 | 318,215 | 196,077 | |
Revenue | 389,944 | 406,930 | 431,368 | |
Profit (loss) | 32,728 | 61,585 | 55,781 | |
SK m&service Co., Ltd [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 113,515 | 107,768 | 89,452 | |
Total liabilities | 62,795 | 56,596 | 42,414 | |
Total equity (deficit) | 50,720 | 51,172 | 47,038 | |
Revenue | 193,256 | 173,816 | 143,255 | |
Profit (loss) | 1,249 | 4,958 | 5,549 | |
SK Communications Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 90,923 | 128,233 | 152,496 | |
Total liabilities | 28,410 | 31,592 | 35,014 | |
Total equity (deficit) | 62,513 | 96,641 | 117,482 | |
Revenue | 47,546 | 58,154 | 80,147 | |
Profit (loss) | (35,454) | (20,411) | (14,826) | |
SK Broadband Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 3,802,349 | 3,523,494 | 3,291,707 | |
Total liabilities | 2,616,317 | 2,376,429 | 2,170,484 | |
Total equity (deficit) | 1,186,032 | 1,147,065 | 1,121,223 | |
Revenue | 3,050,083 | 2,942,976 | 2,731,344 | |
Profit (loss) | 32,030 | 21,526 | 10,832 | |
K-net culture and contents venture fund [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 250,747 | |||
Total liabilities | 35,900 | |||
Total equity (deficit) | 214,847 | |||
Profit (loss) | 196,250 | |||
PS&Marketing Corporation [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 506,883 | 546,803 | 509,580 | |
Total liabilities | 288,881 | 328,846 | 300,364 | |
Total equity (deficit) | 218,002 | 217,957 | 209,216 | |
Revenue | 1,766,142 | 1,679,735 | 1,791,944 | |
Profit (loss) | 391 | 11,908 | 4,835 | |
SERVICEACE Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 77,681 | 67,735 | 65,424 | |
Total liabilities | 45,501 | 40,014 | 34,240 | |
Total equity (deficit) | 32,180 | 27,721 | 31,184 | |
Revenue | 197,408 | 199,828 | 206,338 | |
Profit (loss) | 2,599 | 3,605 | 2,778 | |
SERVICE TOP Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 65,406 | 59,004 | 61,897 | |
Total liabilities | 41,860 | 39,121 | 38,482 | |
Total equity (deficit) | 23,546 | 19,883 | 23,415 | |
Revenue | 186,117 | 186,740 | 197,092 | |
Profit (loss) | 3,309 | 3,971 | 4,396 | |
Network O&S Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 87,000 | 69,774 | 77,426 | |
Total liabilities | 45,248 | 35,798 | 48,069 | |
Total equity (deficit) | 41,752 | 33,976 | 29,357 | |
Revenue | 255,841 | 218,917 | 210,676 | |
Profit (loss) | 6,283 | 3,755 | 6,466 | |
SK Planet Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 1,534,866 | 1,935,663 | 2,406,988 | |
Total liabilities | 920,677 | 834,151 | 784,631 | |
Total equity (deficit) | 614,189 | 1,101,512 | 1,622,357 | |
Revenue | 1,082,685 | 1,177,323 | 1,624,630 | |
Profit (loss) | (513,667) | (30,959) | (75,111) | |
Iriver Limted [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 130,878 | 50,075 | 60,434 | |
Total liabilities | 17,204 | 11,941 | 12,377 | |
Total equity (deficit) | 113,674 | 38,134 | 48,057 | |
Revenue | 69,452 | 52,328 | 55,637 | |
Profit (loss) | (14,092) | (9,987) | 635 | |
SKT Americas, Inc. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 412,251 | 439,209 | 380,141 | |
Total equity (deficit) | 412,251 | 439,209 | 380,141 | |
Profit (loss) | (57) | 1,226 | 791 | |
SK techx Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 237,700 | 212,819 | ||
Total liabilities | 41,561 | 52,563 | ||
Total equity (deficit) | 196,139 | 160,256 | ||
Revenue | 195,948 | 193,396 | ||
Profit (loss) | 26,827 | 28,213 | ||
One Store Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 104,891 | 134,207 | ||
Total liabilities | 39,874 | 41,738 | ||
Total equity (deficit) | 65,017 | 92,469 | ||
Revenue | 115,596 | 106,809 | ||
Profit (loss) | (27,254) | (22,161) | ||
Home and Service Co., Ltd [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 83,698 | |||
Total liabilities | 38,350 | |||
Total equity (deficit) | 45,348 | |||
Revenue | 141,739 | |||
Profit (loss) | 11 | |||
Entrix Co., Ltd. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 30,876 | |||
Total liabilities | 3,186 | |||
Total equity (deficit) | 27,690 | |||
Revenue | 4,895 | |||
Profit (loss) | (1,826) | |||
shopkick Management Company, Inc. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 338,650 | 354,627 | 306,248 | |
Total liabilities | 7 | |||
Total equity (deficit) | 338,650 | 354,627 | 306,241 | |
Revenue | 7 | |||
Profit (loss) | (238) | (85) | (2,455) | |
shopkick, Inc. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Total assets | 37,336 | 37,947 | 25,388 | |
Total liabilities | 32,219 | 34,024 | 32,243 | |
Total equity (deficit) | 5,117 | 3,923 | (6,855) | |
Revenue | 48,836 | 45,876 | 33,851 | |
Profit (loss) | ₩ (25,249) | ₩ (27,149) | ₩ (52,390) |
Reporting Entity - Additional I
Reporting Entity - Additional Information (Detail) - KRW (₩) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries [member] | |||
Disclosure of subsidiaries [line items] | |||
Dividends paid by subsidiaries of which non-controlling interests are significant | ₩ 0 | ₩ 0 | ₩ 0 |
Reporting Entity - Information
Reporting Entity - Information of Significant Non-controlling Interests of the Group (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | |||
Current assets | ₩ 6,201,799 | ₩ 5,996,628 | |
Non-current assets | 27,226,870 | 25,301,035 | |
Current liabilities | (7,109,123) | (6,444,099) | |
Non-current liabilities | (8,290,351) | (8,737,134) | |
Carrying amount of non-controlling interests | 187,056 | 145,031 | |
Revenue | 17,552,010 | 17,158,364 | ₩ 17,167,669 |
Profit (loss) for the period | 2,657,595 | 1,660,101 | 1,515,885 |
Total comprehensive income (loss) | 2,656,582 | 1,412,770 | 1,517,720 |
Profit (loss) attributable to non-controlling interests | 57,766 | (15,866) | (2,719) |
Net cash provided by (used in) operating activities | 3,855,820 | 4,243,168 | 3,778,129 |
Net cash provided by (used in) investing activities | (3,070,607) | (2,462,208) | (2,880,499) |
Net cash provided by (used in) financing activities | ₩ (826,618) | (1,044,829) | (964,583) |
K-net culture and contents venture fund [member] | |||
Disclosure of subsidiaries [line items] | |||
Ownership of non-controlling interests (%) | 41.00% | ||
Current assets | ₩ 625 | ||
Non-current assets | 250,122 | ||
Current liabilities | (35,900) | ||
Net assets | 214,847 | ||
Carrying amount of non-controlling interests | 88,087 | ||
Profit (loss) for the period | 196,250 | ||
Total comprehensive income (loss) | 201,693 | ||
Profit (loss) attributable to non-controlling interests | 80,463 | ||
Net cash provided by (used in) operating activities | (7) | ||
Net cash provided by (used in) investing activities | (600) | ||
Net increase (decrease) in cash and cash equivalents | ₩ (607) | ||
Iriver Limted [member] | |||
Disclosure of subsidiaries [line items] | |||
Ownership of non-controlling interests (%) | 54.10% | ||
Current assets | ₩ 74,873 | ||
Non-current assets | 56,005 | ||
Current liabilities | (9,563) | ||
Non-current liabilities | (7,641) | ||
Net assets | 113,674 | ||
Carrying amount of non-controlling interests | 63,382 | ||
Revenue | 69,452 | 52,328 | 55,637 |
Profit (loss) for the period | (14,092) | ₩ (9,987) | ₩ 635 |
Total comprehensive income (loss) | (14,278) | ||
Profit (loss) attributable to non-controlling interests | (7,438) | ||
Net cash provided by (used in) operating activities | (7,553) | ||
Net cash provided by (used in) investing activities | (45,002) | ||
Net cash provided by (used in) financing activities | 64,571 | ||
Net increase (decrease) in cash and cash equivalents | 12,016 | ||
SK Communications Co., Ltd. [member] | |||
Disclosure of subsidiaries [line items] | |||
Ownership of non-controlling interests (%) | 35.46% | 35.46% | |
Current assets | ₩ 81,806 | ₩ 95,662 | |
Non-current assets | 46,427 | 56,834 | |
Current liabilities | (30,098) | (33,306) | |
Non-current liabilities | (1,494) | (1,708) | |
Net assets | 96,641 | 117,482 | |
Carrying amount of non-controlling interests | 34,265 | 41,659 | |
Revenue | 47,546 | 58,154 | 80,147 |
Profit (loss) for the period | ₩ (35,454) | (20,411) | (14,826) |
Total comprehensive income (loss) | 20,841 | 16,698 | |
Profit (loss) attributable to non-controlling interests | 7,240 | 5,254 | |
Net cash provided by (used in) operating activities | (4,891) | (2,706) | |
Net cash provided by (used in) investing activities | 3,625 | 8,723 | |
Net increase (decrease) in cash and cash equivalents | ₩ (1,266) | ₩ 6,017 | |
One Store Co., Ltd. [member] | |||
Disclosure of subsidiaries [line items] | |||
Ownership of non-controlling interests (%) | 34.46% | 34.46% | |
Current assets | ₩ 76,810 | ₩ 90,414 | |
Non-current assets | 28,081 | 43,793 | |
Current liabilities | (38,547) | (40,969) | |
Non-current liabilities | (1,327) | (769) | |
Net assets | 65,017 | 92,469 | |
Carrying amount of non-controlling interests | 22,405 | 31,863 | |
Revenue | 115,596 | 106,809 | |
Profit (loss) for the period | (27,254) | (22,161) | |
Total comprehensive income (loss) | (27,452) | 22,402 | |
Profit (loss) attributable to non-controlling interests | (9,392) | 6,772 | |
Net cash provided by (used in) operating activities | 13,912 | (4,447) | |
Net cash provided by (used in) investing activities | (2,000) | (20,796) | |
Net cash provided by (used in) financing activities | (7) | 51,426 | |
Net increase (decrease) in cash and cash equivalents | ₩ 11,905 | ₩ 26,183 |
Significant Accounting Polici88
Significant Accounting Policies - Estimated Useful Lives of the Group's Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | Buildings and structures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 15 Years |
Bottom of range [member] | Machinery [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 3 Years |
Bottom of range [member] | Other property and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 2 Years |
Top of range [member] | Buildings and structures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 40 Years |
Top of range [member] | Machinery [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 15 Years |
Top of range [member] | Other property and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 10 Years |
Significant Accounting Polici89
Significant Accounting Policies - Estimated Useful Lives of the Group's Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Frequency usage rights [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 5 Years |
Frequency usage rights [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 13 Years |
Land usage rights [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 5 Years |
Industrial rights [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 5 Years |
Industrial rights [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 10 Years |
Development costs [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 3 Years |
Development costs [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 5 Years |
Facility usage rights [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 10 Years |
Facility usage rights [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 20 Years |
Customer relations [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 3 Years |
Customer relations [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 7 Years |
Other [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 3 Years |
Other [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives (years) | 20 Years |
Significant Accounting Polici90
Significant Accounting Policies - Additional Information (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | ₩ 7,461,181 | ₩ 7,088,162 |
Financial asset | 887,007 | 828,521 |
Financial liabilities | 12,725,704 | 12,702,059 |
Loss allowances for financial assets | (4,100,838) | (3,962,560) |
Changes in fair value of cash flow hedge was recognized in OCI | 73,828 | |
Financial liabilities at fair value through profit or loss [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial liabilities | 60,278 | 59,600 |
New IFRSs nine [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Hedged liabilities | 2,026,434 | |
Investment bonds [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | 19,928 | 6,755 |
Financial assets are measured at FVTPL | 97,003 | |
Allowance for doubtful accounts [Member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Loss allowances for financial assets | 362,171 | 369,332 |
Loans and receivables [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | 6,176,575 | 5,937,507 |
Loans and receivables [member] | Financial assets at amortised cost, class [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | 6,176,575 | |
Available- for-sale financial assets [Member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | 934,390 | 935,885 |
Financial asset | 887,007 | 828,521 |
Available- for-sale financial assets [Member] | Equity investments [member] | New IFRSs nine [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | 914,462 | |
Financial assets at fair value through profit or loss [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Financial asset | ₩ 328,314 | ₩ 7,368 |
Bottom of range [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Investment property, estimated useful lives | 15 Years | |
Top of range [member] | ||
Disclosure of reclassification of financial assets [line items] | ||
Investment property, estimated useful lives | 40 Years |
Operating Segments - Segment In
Operating Segments - Segment Information (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Revenue | ₩ 17,520,013 | ₩ 17,091,816 | ₩ 17,136,734 |
Depreciation and amortization | 3,097,466 | 2,941,886 | 2,845,295 |
Operating profit (loss) | 1,224,572 | 1,303,418 | 1,495,425 |
Gain relating to investments in subsidiaries, associates and joint ventures, net | 2,245,732 | 544,501 | 786,140 |
Finance income | 366,561 | 575,050 | 103,900 |
Finance costs | (433,616) | (326,830) | (350,100) |
Profit before income tax | 3,403,249 | 2,096,139 | 2,035,365 |
External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,520,013 | 17,091,816 | 17,136,734 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 20,341,169 | 19,889,322 | 20,238,944 |
Depreciation and amortization | 3,097,466 | 2,941,886 | 2,845,295 |
Operating profit (loss) | 1,536,626 | 1,535,744 | 1,708,006 |
Operating segments [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,821,156 | 2,797,506 | 3,102,210 |
Operating segments [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,520,013 | 17,091,816 | 17,136,734 |
Operating segments [member] | Cellular Services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 14,873,543 | 14,635,720 | 14,962,689 |
Depreciation and amortization | 2,390,016 | 2,262,363 | 2,174,819 |
Operating profit (loss) | 1,714,078 | 1,799,127 | 1,678,339 |
Operating segments [member] | Cellular Services [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,611,408 | 1,630,811 | 1,693,411 |
Operating segments [member] | Cellular Services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 13,262,135 | 13,004,909 | 13,269,278 |
Operating segments [member] | Fixed-line telecommunication services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,586,887 | 3,349,905 | 3,162,712 |
Depreciation and amortization | 592,877 | 551,811 | 531,106 |
Operating profit (loss) | 167,515 | 132,459 | 108,252 |
Operating segments [member] | Fixed-line telecommunication services [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 862,736 | 698,712 | 668,139 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,724,151 | 2,651,193 | 2,494,573 |
Operating segments [member] | E-commerce services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,091,903 | 1,177,323 | 1,703,278 |
Depreciation and amortization | 54,486 | 68,298 | 112,537 |
Operating profit (loss) | (267,829) | (365,194) | (6,740) |
Operating segments [member] | E-commerce services [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 47,732 | 176,007 | 643,299 |
Operating segments [member] | E-commerce services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,044,171 | 1,001,316 | 1,059,979 |
Operating segments [member] | Others [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 788,836 | 726,374 | 410,265 |
Depreciation and amortization | 60,087 | 59,414 | 26,833 |
Operating profit (loss) | (77,138) | (30,648) | (71,845) |
Operating segments [member] | Others [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 299,280 | 291,976 | 97,361 |
Operating segments [member] | Others [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 489,556 | 434,398 | 312,904 |
Adjustments [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | (2,821,156) | (2,797,506) | (3,102,210) |
Operating profit (loss) | (312,054) | (232,326) | (212,581) |
Adjustments [member] | Intersegment [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | ₩ (2,821,156) | ₩ (2,797,506) | ₩ (3,102,210) |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Total Segment Operating Income to Consolidated Operating Profit from Continuing Operations (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Operating income | ₩ 1,224,572 | ₩ 1,303,418 | ₩ 1,495,425 |
Gain on disposal of property and equipment and intangible assets | 13,991 | 6,908 | 7,140 |
Others | 18,006 | 59,640 | 23,795 |
Other operating income | 31,997 | 66,548 | 30,935 |
Impairment loss on property and equipment and intangible assets | (54,946) | (24,506) | (35,845) |
Loss on disposal of property and equipment and intangible assets | (60,086) | (63,797) | (21,392) |
Donations | (112,634) | (96,633) | (72,454) |
Bad debt for accounts receivable - other | (5,793) | (40,312) | (15,323) |
Others | (101,589) | (49,593) | (55,536) |
Other operating expenses | (1,630,747) | (1,523,766) | (1,524,377) |
Penalty refund | 25,000 | ||
Penalties and various other expenses | 21,400 | 7,600 | 29,500 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Operating income | 1,536,626 | 1,535,744 | 1,708,006 |
Adjustments [member] | |||
Disclosure of operating segments [line items] | |||
Operating income | (312,054) | (232,326) | (212,581) |
Gain on disposal of property and equipment and intangible assets | 13,991 | 6,908 | 7,140 |
Others | 18,006 | 59,640 | 23,795 |
Other operating income | 31,997 | 66,548 | 30,935 |
Impairment loss on property and equipment and intangible assets | (54,946) | (24,506) | (35,845) |
Loss on disposal of property and equipment and intangible assets | (60,086) | (63,797) | (21,392) |
Donations | (112,634) | (96,633) | (72,454) |
Bad debt for accounts receivable - other | (5,793) | (40,312) | (15,323) |
Others | (110,592) | (73,626) | (98,502) |
Other operating expenses | ₩ (344,051) | ₩ (298,874) | ₩ (243,516) |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Revenue | ₩ 17,520,013 | ₩ 17,091,816 | ₩ 17,136,734 |
Domestic [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,374,000 | 16,940,000 | 17,083,000 |
Non-current assets | 15,554,000 | 15,949,000 | 14,474,000 |
Outside of Korea [member] | |||
Disclosure of operating segments [line items] | |||
Non-current assets | ₩ 257,000 | ₩ 286,000 | ₩ 287,000 |
Operating Segments - Operating
Operating Segments - Operating Revenue by Service Type (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Revenue | ₩ 17,520,013 | ₩ 17,091,816 | ₩ 17,136,734 |
External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,520,013 | 17,091,816 | 17,136,734 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 20,341,169 | 19,889,322 | 20,238,944 |
Operating segments [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,520,013 | 17,091,816 | 17,136,734 |
Operating segments [member] | Cellular Services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 14,873,543 | 14,635,720 | 14,962,689 |
Operating segments [member] | Cellular Services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 13,262,135 | 13,004,909 | 13,269,278 |
Operating segments [member] | Cellular Services [member] | External [member] | Wireless service [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 10,638,961 | 10,582,963 | 10,720,518 |
Operating segments [member] | Cellular Services [member] | External [member] | Cellular interconnection [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 592,754 | 614,446 | 710,026 |
Operating segments [member] | Cellular Services [member] | External [member] | Wireless device sales [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,052,203 | 922,449 | 963,354 |
Operating segments [member] | Cellular Services [member] | External [member] | Miscellaneous [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 978,217 | 885,051 | 875,380 |
Operating segments [member] | Fixed-line telecommunication services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,586,887 | 3,349,905 | 3,162,712 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,724,151 | 2,651,193 | 2,494,573 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | Fixed line telephone service [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 316,763 | 357,754 | 420,611 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | Fixed line interconnection [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 116,070 | 134,089 | 57,130 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | Broadband internet service and advanced media platform service [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,641,645 | 1,472,776 | 1,308,789 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | International calling service [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 89,412 | 95,986 | 99,106 |
Operating segments [member] | Fixed-line telecommunication services [member] | External [member] | Miscellaneous [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 560,261 | 590,588 | 608,937 |
Operating segments [member] | E-commerce services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,091,903 | 1,177,323 | 1,703,278 |
Operating segments [member] | E-commerce services [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,044,171 | 1,001,316 | 1,059,979 |
Operating segments [member] | Others [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 788,836 | 726,374 | 410,265 |
Operating segments [member] | Others [member] | External [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 489,556 | 434,398 | 312,904 |
Operating segments [member] | Others [member] | External [member] | Portal service [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 43,952 | 54,177 | 71,812 |
Operating segments [member] | Others [member] | External [member] | Miscellaneous [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | ₩ 445,604 | ₩ 380,221 | ₩ 241,092 |
Restricted Deposits - Deposits
Restricted Deposits - Deposits Which are Restricted in Use (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Short-term financial instruments | ₩ 616,780 | ₩ 468,768 |
Long-term financial instruments | 1,222 | 937 |
Financial instruments | 618,002 | 469,705 |
Restricted deposits [member] | ||
Disclosure of financial assets [line items] | ||
Short-term financial instruments | 89,850 | 90,278 |
Long-term financial instruments | 1,222 | 937 |
Financial instruments | ₩ 91,072 | ₩ 91,215 |
Trade and Other Receivables - D
Trade and Other Receivables - Details of Trade and Other Receivables (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | ₩ 2,126,007 | ₩ 2,240,926 |
Short-term loans | 62,830 | 58,979 |
Accounts receivable - other | 1,260,835 | 1,121,444 |
Accrued income | 3,979 | 2,780 |
Others | 3,927 | 3,937 |
Trade and other receivables, current | 3,457,578 | 3,428,066 |
Long-term loans | 50,874 | 65,476 |
Long-term accounts receivable - other | 287,048 | 149,669 |
Guarantee deposits | 292,590 | 298,964 |
Long-term accounts receivable - trade | 12,748 | 20,385 |
Trade and other receivables, noncurrent | 643,260 | 534,494 |
Trade and other receivables | 4,100,838 | 3,962,560 |
Gross amount [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 2,365,270 | 2,482,502 |
Short-term loans | 63,380 | 59,526 |
Accounts receivable - other | 1,336,247 | 1,200,421 |
Accrued income | 3,979 | 2,780 |
Others | 3,927 | 3,937 |
Trade and other receivables, current | 3,772,803 | 3,749,166 |
Long-term loans | 97,635 | 113,456 |
Long-term accounts receivable - other | 287,048 | 149,669 |
Guarantee deposits | 292,590 | 298,964 |
Long-term accounts receivable - trade | 12,933 | 20,637 |
Trade and other receivables, noncurrent | 690,206 | 582,726 |
Trade and other receivables | 4,463,009 | 4,331,892 |
Allowance for doubtful accounts [Member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | (239,263) | (241,576) |
Short-term loans | (550) | (547) |
Accounts receivable - other | (75,412) | (78,977) |
Trade and other receivables, current | (315,225) | (321,100) |
Long-term loans | (46,761) | (47,980) |
Long-term accounts receivable - trade | (185) | (252) |
Trade and other receivables, noncurrent | (46,946) | (48,232) |
Trade and other receivables | ₩ (362,171) | ₩ (369,332) |
Trade and Other Receivables - C
Trade and Other Receivables - Changes in Allowances for Doubtful Accounts of Trade and Other Receivables (Detail) - Trade and other receivables [member] - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [line items] | ||
Beginning balance | ₩ 369,332 | ₩ 344,016 |
Bad debt expense | 40,377 | 78,132 |
Write-offs | (70,802) | (79,891) |
Other | 23,264 | 27,075 |
Ending balance | ₩ 362,171 | ₩ 369,332 |
Trade and Other Receivables -98
Trade and Other Receivables - Details of Overdue but Not Impaired, and Impaired Trade and Other Receivables (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | ₩ 2,138,755 | ₩ 2,261,311 |
Other receivables | 1,962,083 | 1,701,249 |
Overdue but not impaired [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 29,304 | 41,613 |
Other receivables | 3,113 | 5,663 |
Gross amount [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 2,378,203 | 2,503,139 |
Other receivables | 2,084,806 | 1,828,753 |
Gross amount [member] | Neither overdue nor impaired [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 1,585,714 | 1,715,966 |
Other receivables | 1,930,261 | 1,617,349 |
Gross amount [member] | Overdue but not impaired [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 29,304 | 41,613 |
Other receivables | 3,113 | 5,663 |
Gross amount [member] | Impaired [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 763,185 | 745,560 |
Other receivables | 151,432 | 205,741 |
Allowance for doubtful accounts [Member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | (239,448) | (241,828) |
Other receivables | ₩ (122,723) | ₩ (127,504) |
Trade and Other Receivables - A
Trade and Other Receivables - Aging of Overdue but Not Impaired Accounts Receivable (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | ₩ 2,138,755 | ₩ 2,261,311 |
Other receivables | 1,962,083 | 1,701,249 |
Overdue but not impaired [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 29,304 | 41,613 |
Other receivables | 3,113 | 5,663 |
Overdue but not impaired [member] | Less than 1 month [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 7,150 | 11,543 |
Other receivables | 2,679 | 2,838 |
Overdue but not impaired [member] | 1 ~ 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 1,663 | 9,144 |
Other receivables | 44 | 140 |
Overdue but not impaired [member] | 3 ~ 6 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 1,576 | 4,643 |
Other receivables | 124 | 1 |
Overdue but not impaired [member] | More than 6 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable - trade | 18,915 | 16,283 |
Other receivables | ₩ 266 | ₩ 2,684 |
Inventories - Details of Invent
Inventories - Details of Inventories (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of inventories [Line Items] | ||
Merchandise | ₩ 243,975 | ₩ 225,958 |
Finished goods | 1,332 | 1,568 |
Work-in-process | 950 | 2,548 |
Raw materials and supplies | 26,146 | 29,772 |
Inventories | 272,403 | 259,846 |
Gross amount [member] | ||
Disclosure of inventories [Line Items] | ||
Merchandise | 251,463 | 232,871 |
Finished goods | 1,889 | 1,931 |
Work-in-process | 1,906 | 2,895 |
Raw materials and supplies | 29,395 | 31,141 |
Inventories | 284,653 | 268,838 |
Accumulated impairment [member] | ||
Disclosure of inventories [Line Items] | ||
Merchandise | (7,488) | (6,913) |
Finished goods | (557) | (363) |
Work-in-process | (956) | (347) |
Raw materials and supplies | (3,249) | (1,369) |
Inventories | ₩ (12,250) | ₩ (8,992) |
Inventories - Amount of the Inv
Inventories - Amount of the Inventory Write-downs Charged to the Consolidated Statement of Income and Write-off of Inventories (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of current inventories [abstract] | |||
Charged to cost of products that have been resold | ₩ 6,079 | ₩ 3,751 | ₩ 1,983 |
Write-off upon sale | ₩ (2,820) | ₩ (1,299) | ₩ (2,095) |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - KRW (₩) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of current inventories [abstract] | |||
Reversals of inventory write-downs | ₩ 0 | ₩ 0 | ₩ 0 |
Investment Securities - Details
Investment Securities - Details of Short-term Investment Securities (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Short-term investment securities | ₩ 144,386 | ₩ 107,364 |
Beneficiary certificates [member] | ||
Disclosure of financial assets [line items] | ||
Short-term investment securities | ₩ 144,386 | ₩ 107,364 |
Investment Securities - Deta104
Investment Securities - Details of Long-term Investment Securities (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Long-term investment securities | ₩ 887,007 | ₩ 828,521 | |
Sale of shares, amount of cash | 129,726 | 555,519 | ₩ 149,310 |
Sale of shares, gain on disposal of long-term investment securities | ₩ 4,890 | ₩ 459,349 | ₩ 10,786 |
Loen Entertainment, Inc. [member] | |||
Disclosure of financial assets [line items] | |||
Sale of shares, number of shares sold | 3,793,756 | ||
Sale of shares, gain on disposal of long-term investment securities | ₩ 314,745 | ||
Kakao Corp. [member] | |||
Disclosure of financial assets [line items] | |||
Sale of shares, number of shares exchanged | 1,357,367 | 1,357,367 | |
Sale of shares, amount of cash | ₩ 112,649 | ₩ 218,037 | |
POSCO Co., Ltd. [member] | |||
Disclosure of financial assets [line items] | |||
Sale of shares, amount of cash | 305,110 | ||
Sale of shares, gain on disposal of long-term investment securities | 138,779 | ||
Marketable equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Long-term investment securities | 589,202 | 526,363 | |
Unlisted equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Long-term investment securities | 277,877 | 295,403 | |
Equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Long-term investment securities | 867,079 | 821,766 | |
Investment bonds [member] | |||
Disclosure of financial assets [line items] | |||
Long-term investment securities | ₩ 19,928 | ₩ 6,755 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Sale of shares, amount of cash | ₩ 129,726 | ₩ 555,519 | ₩ 149,310 |
Kakao Corp. [member] | |||
Disclosure of financial assets [line items] | |||
Sale of shares, number of shares exchanged | 1,357,367 | 1,357,367 | |
Sale of shares, amount of cash | ₩ 112,649 | ₩ 218,037 | |
Sale of shares, loss on disposal of long-term investment securities | ₩ 35,468 |
Business Combination - Addition
Business Combination - Additional information (Detail) - KRW (₩) ₩ in Millions | 2 Months Ended | 3 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2017 | Oct. 01, 2017 | Sep. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about business combination [line items] | ||||||
Goodwill | ₩ 1,915,017 | ₩ 1,915,017 | ₩ 1,932,452 | ₩ 1,908,590 | ||
S.M. LIFE DESIGN COMPANY JAPAN INC [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Consideration transferred in cash | ₩ 30,000 | |||||
S.M. LIFE DESIGN COMPANY JAPAN INC [member] | Iriver Limted [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Consideration transferred in cash | 30,000 | |||||
Goodwill | ₩ 21,748 | |||||
Revenue of acquiree since acquisition date | 6,365 | |||||
Profit (loss) of acquiree since acquisition date | ₩ 1,244 | |||||
S.M. Mobile Communications JAPAN Inc [member] | Iriver Limted [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Goodwill | ₩ 13,473 | |||||
Revenue of acquiree since acquisition date | 0 | |||||
Profit (loss) of acquiree since acquisition date | ₩ (103) |
Business Combination - Consider
Business Combination - Considerations Paid and Assets in Succession Recognized at the Acquisition Date (Detail) - KRW (₩) ₩ in Millions | Oct. 01, 2017 | Sep. 01, 2017 | Apr. 01, 2015 |
S.M. LIFE DESIGN COMPANY JAPAN INC [member] | |||
Considerations paid and liabilities assumed: | |||
Cash and cash equivalents | ₩ 30,000 | ||
Assets and liabilities acquired: | |||
Cash and cash equivalents | 3,434 | ||
Trade and other receivables | 1,471 | ||
Inventories | 1,879 | ||
Property and equipment | 4 | ||
Intangible assets | 6,677 | ||
Trade and other payables | (2,563) | ||
Deferred tax liabilities | (2,324) | ||
Other liabilities | (326) | ||
Net assets | ₩ 8,252 | ||
S.M. Mobile Communications JAPAN Inc [member] | |||
Considerations paid and liabilities assumed: | |||
Shares of IRIVER LIMITED | ₩ 24,650 | ||
Assets and liabilities acquired: | |||
Cash and cash equivalents | 4,112 | ||
Trade and other receivables | 237 | ||
Property and equipment | 311 | ||
Intangible assets | 7,445 | ||
Other assets | 41 | ||
Trade and other payables | (815) | ||
Other liabilities | (154) | ||
Net assets | ₩ 11,177 | ||
Joeun Safe Co., Ltd [member] | |||
Considerations paid and liabilities assumed: | |||
Cash and cash equivalents | ₩ 13,197 | ||
Accounts payable - other | 1,858 | ||
Considerations paid and liabilities assumed | 15,055 | ||
Assets and liabilities acquired: | |||
Property and equipment | 3,208 | ||
Intangible assets | 8,486 | ||
Other assets | 1,603 | ||
Net assets | ₩ 13,297 |
Investments in Associates an108
Investments in Associates and Joint Ventures - Investments in Associates and Joint Ventures Accounted for using the Equity Method (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Carrying amount | ₩ 9,498,381 | ₩ 7,306,816 | |
Joint ventures, Carrying amount | 40,057 | 97,507 | |
Investments in associates and joint ventures | ₩ 9,538,438 | ₩ 7,404,323 | ₩ 6,896,293 |
Dogus Planet, Inc. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Joint ventures, Country | Turkey | ||
Joint ventures, Ownership (%) | 50.00% | 50.00% | |
Joint ventures, Carrying amount | ₩ 13,991 | ₩ 20,081 | |
Investments in associates and joint ventures | ₩ 13,991 | ₩ 20,081 | 15,118 |
PT XL planet digital [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Joint ventures, Country | Indonesia | ||
Joint ventures, Ownership (%) | 50.00% | ||
Joint ventures, Carrying amount | ₩ 27,512 | ||
Investments in associates and joint ventures | ₩ 27,512 | 23,108 | |
Finnq Co. Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Joint ventures, Country | Korea | ||
Joint ventures, Ownership (%) | 49.00% | 49.00% | |
Joint ventures, Carrying amount | ₩ 16,474 | ₩ 24,174 | |
Investments in associates and joint ventures | ₩ 16,474 | 24,174 | |
Celcom Planet and others [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Joint ventures, Country | - | ||
Joint ventures, Carrying amount | ₩ 9,592 | 25,740 | |
Investments in associates and joint ventures | ₩ 9,592 | ₩ 25,740 | 3,406 |
SK China Company Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | China | ||
Associates, Ownership (%) | 27.30% | 9.60% | |
Associates, Carrying amount | ₩ 526,099 | ₩ 46,354 | |
Investments in associates and joint ventures | ₩ 526,099 | ₩ 46,354 | 43,814 |
Korea IT fund [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 63.30% | 63.30% | |
Associates, Carrying amount | ₩ 257,003 | ₩ 263,850 | |
Investments in associates and joint ventures | ₩ 257,003 | ₩ 263,850 | 260,456 |
KEB HanaCard Co., Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 15.00% | 15.00% | |
Associates, Carrying amount | ₩ 280,988 | ₩ 265,798 | |
Investments in associates and joint ventures | ₩ 280,988 | ₩ 265,798 | 254,177 |
NanoEnTek, Inc. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 28.50% | 28.50% | |
Associates, Carrying amount | ₩ 38,718 | ₩ 39,514 | |
Investments in associates and joint ventures | ₩ 38,718 | ₩ 39,514 | 45,008 |
SK Industrial Development China Co., Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Hong Kong | ||
Associates, Ownership (%) | 21.00% | ||
Associates, Carrying amount | ₩ 74,717 | ||
Investments in associates and joint ventures | ₩ 74,717 | 86,324 | |
SK Technology Innovation Company [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Cayman Islands | ||
Associates, Ownership (%) | 49.00% | 49.00% | |
Associates, Carrying amount | ₩ 42,511 | ₩ 47,488 | |
Investments in associates and joint ventures | ₩ 42,511 | ₩ 47,488 | 45,891 |
HappyNarae Co., Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 45.00% | 42.50% | |
Associates, Carrying amount | ₩ 21,873 | ₩ 17,236 | |
Investments in associates and joint ventures | ₩ 21,873 | ₩ 17,236 | 17,095 |
SK hynix Inc. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 20.10% | 20.10% | |
Associates, Carrying amount | ₩ 8,130,000 | ₩ 6,132,122 | |
Investments in associates and joint ventures | ₩ 8,130,000 | ₩ 6,132,122 | 5,624,493 |
SK MENA Investment B.V. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Netherlands | ||
Associates, Ownership (%) | 32.10% | 32.10% | |
Associates, Carrying amount | ₩ 13,853 | ₩ 15,451 | |
Investments in associates and joint ventures | ₩ 13,853 | ₩ 15,451 | 14,929 |
SKY Property Mgmt. Ltd. [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Virgin Island | ||
Associates, Ownership (%) | 33.00% | ||
Associates, Carrying amount | ₩ 263,225 | ||
Investments in associates and joint ventures | ₩ 263,225 | 251,166 | |
S.M. Culture & Contents Co., Ltd [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | Korea | ||
Associates, Ownership (%) | 23.40% | ||
Associates, Carrying amount | ₩ 64,966 | ||
Investments in associates and joint ventures | ₩ 64,966 | ||
Xian Tianlong Science and Technology Co., Ltd. [Member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | China | ||
Associates, Ownership (%) | 49.00% | 49.00% | |
Associates, Carrying amount | ₩ 25,891 | ₩ 25,880 | |
Investments in associates and joint ventures | ₩ 25,891 | 25,880 | |
Daehan Kanggun BcN Co., Ltd. and others [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Associates, Country | - | ||
Associates, Carrying amount | ₩ 96,479 | 115,181 | |
Investments in associates and joint ventures | ₩ 96,479 | ₩ 115,181 | ₩ 161,058 |
Investments in Associates an109
Investments in Associates and Joint Ventures - Investments in Associates and Joint Ventures Accounted for using the Equity Method (Parenthetical) (Detail) ₩ / shares in Units, ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017KRW (₩)₩ / sharesshares | Dec. 31, 2017USD ($)shares | |
SK China Company Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Value of shares in right issue | $ | $ 100,000,000 | |
SK Industrial Development China Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Number of shares acquired pursuant to rights issue | 2,107,037 | 2,107,037 |
HappyNarae Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Price per shares acquired | ₩ / shares | ₩ 17,212 | |
Number of shares acquired | 40,000 | 40,000 |
SKY Property Mgmt. Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Number of shares acquired pursuant to rights issue | 8,101,884 | 8,101,884 |
S.M. Culture & Contents Co., Ltd [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Number of shares acquired | 22,033,898 | 22,033,898 |
Number of shares acquired, purchase price | ₩ | ₩ 65,341 |
Investments in Associates an110
Investments in Associates and Joint Ventures - Market Price of Investments in Listed Associates (Detail) - KRW (₩) ₩ / shares in Units, ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
NanoEnTek, Inc. [member] | ||
Disclosure of associates [Line Items] | ||
Market value per share | ₩ 5,950 | ₩ 5,020 |
Number of shares | 6,960,445 | 6,960,445 |
Fair value | ₩ 41,415 | ₩ 34,941 |
SK hynix Inc. [member] | ||
Disclosure of associates [Line Items] | ||
Market value per share | ₩ 76,500 | ₩ 44,700 |
Number of shares | 146,100,000 | 146,100,000 |
Fair value | ₩ 11,176,650 | ₩ 6,530,670 |
S.M. Culture & Contents Co., Ltd [member] | ||
Disclosure of associates [Line Items] | ||
Market value per share | ₩ 2,700 | |
Number of shares | 22,033,898 | |
Fair value | ₩ 59,492 |
Investments in Associates an111
Investments in Associates and Joint Ventures - Financial Information of Significant Associates (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [Line Items] | |||
Current assets | ₩ 6,201,799 | ₩ 5,996,628 | |
Non-current assets | 27,226,870 | 25,301,035 | |
Current liabilities | 7,109,123 | 6,444,099 | |
Non-current liabilities | 8,290,351 | 8,737,134 | |
Revenue | 17,552,010 | 17,158,364 | ₩ 17,167,669 |
Profit for the year | 2,657,595 | 1,660,101 | 1,515,885 |
Other comprehensive income (loss) | (1,013) | (247,331) | 1,835 |
Total comprehensive income | 2,656,582 | 1,412,770 | 1,517,720 |
SK hynix Inc. [member] | |||
Disclosure of associates [Line Items] | |||
Current assets | 17,310,444 | 9,838,982 | |
Non-current assets | 28,108,020 | 22,377,044 | |
Current liabilities | 8,116,133 | 4,160,849 | |
Non-current liabilities | 3,481,412 | 4,031,647 | |
Revenue | 30,109,434 | 17,197,975 | 18,797,998 |
Profit for the year | 10,642,219 | 2,960,483 | 4,323,595 |
Other comprehensive income (loss) | (422,042) | 28,844 | 40,215 |
Total comprehensive income | 10,220,177 | 2,989,327 | 4,363,810 |
KEB HanaCard Co., Ltd. [member] | |||
Disclosure of associates [Line Items] | |||
Current assets | 7,339,492 | 6,868,387 | |
Non-current assets | 220,258 | 239,758 | |
Current liabilities | 1,181,746 | 1,219,327 | |
Non-current liabilities | 4,861,842 | 4,476,979 | |
Revenue | 1,519,607 | 1,413,077 | 1,472,830 |
Profit for the year | 106,352 | 75,595 | 10,119 |
Other comprehensive income (loss) | (984) | (154) | (547) |
Total comprehensive income | 105,368 | ₩ 75,441 | ₩ 9,572 |
SK China Company Ltd. [member] | |||
Disclosure of associates [Line Items] | |||
Current assets | 729,872 | ||
Non-current assets | 1,031,647 | ||
Current liabilities | 81,161 | ||
Non-current liabilities | 64,717 | ||
Revenue | 69,420 | ||
Profit for the year | 11,492 | ||
Other comprehensive income (loss) | 27,190 | ||
Total comprehensive income | ₩ 38,682 |
Investments in Associates an112
Investments in Associates and Joint Ventures - Condensed Financial Information of Joint Ventures (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of joint ventures [line items] | ||||
Current assets | ₩ 6,201,799 | ₩ 5,996,628 | ||
Cash and cash equivalents | 1,457,735 | 1,505,242 | ₩ 768,922 | ₩ 834,429 |
Non-current assets | 27,226,870 | 25,301,035 | ||
Current liabilities | 7,109,123 | 6,444,099 | ||
Non-current liabilities | 8,290,351 | 8,737,134 | ||
Revenue | 17,552,010 | 17,158,364 | 17,167,669 | |
Depreciation and amortization | (3,097,466) | (2,941,886) | (2,845,295) | |
Interest income | 366,561 | 575,050 | 103,900 | |
Interest expense | (299,100) | (290,454) | (297,662) | |
Income tax benefit | (745,654) | (436,038) | (519,480) | |
Loss for the year | 2,657,595 | 1,660,101 | 1,515,885 | |
Total comprehensive income (loss) | 2,656,582 | 1,412,770 | 1,517,720 | |
Dogus Planet, Inc. [member] | ||||
Disclosure of joint ventures [line items] | ||||
Current assets | 39,656 | 46,433 | ||
Cash and cash equivalents | 25,818 | 45,839 | ||
Non-current assets | 21,159 | 20,218 | ||
Current liabilities | 32,622 | 26,417 | ||
Accounts payable, other payables and provision | 2,743 | 1,971 | ||
Non-current liabilities | 212 | 72 | ||
Revenue | 82,791 | 53,864 | 38,944 | |
Depreciation and amortization | (6,152) | (5,299) | (5,318) | |
Interest income | 781 | 394 | 465 | |
Interest expense | (4) | (2,139) | ||
Loss for the year | (4,535) | (22,017) | (32,713) | |
Total comprehensive income (loss) | (4,535) | (22,017) | (32,713) | |
PT. Melon Indonesia [Member] | ||||
Disclosure of joint ventures [line items] | ||||
Revenue | 17,094 | |||
Depreciation and amortization | (132) | |||
Interest income | 288 | |||
Loss for the year | 1,853 | |||
Total comprehensive income (loss) | 1,853 | |||
PT XL planet digital [member] | ||||
Disclosure of joint ventures [line items] | ||||
Current assets | 20,077 | |||
Cash and cash equivalents | 14,985 | |||
Non-current assets | 50,765 | |||
Current liabilities | 14,513 | |||
Accounts payable, other payables and provision | 10,306 | |||
Non-current liabilities | 1,305 | |||
Revenue | 9,492 | 5,536 | ||
Depreciation and amortization | (940) | (2,746) | ||
Interest income | 267 | 525 | ||
Income tax benefit | 51 | 7,025 | ||
Loss for the year | (49,438) | (21,381) | ||
Total comprehensive income (loss) | (49,438) | ₩ (21,381) | ||
Finnq Co. Ltd. [member] | ||||
Disclosure of joint ventures [line items] | ||||
Current assets | 32,232 | 48,699 | ||
Cash and cash equivalents | 4,590 | 48,408 | ||
Non-current assets | 15,610 | 673 | ||
Current liabilities | 5,685 | 138 | ||
Accounts payable, other payables and provision | 2,290 | 15 | ||
Non-current liabilities | 13,862 | 784 | ||
Depreciation and amortization | (1,077) | (12) | ||
Interest income | 532 | 182 | ||
Interest expense | (276) | |||
Loss for the year | (15,699) | (829) | ||
Total comprehensive income (loss) | ₩ (15,699) | ₩ (829) |
Investments in Associates an113
Investments in Associates and Joint Ventures - Reconciliations of Financial Information of Significant Associates to Carrying Amounts of Investments in Associates in the Consolidated Financial Statements (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [Line Items] | ||
Carrying amount | ₩ 9,498,381 | ₩ 7,306,816 |
SK hynix Inc. [member] | ||
Disclosure of associates [Line Items] | ||
Net assets | ₩ 33,814,467 | ₩ 24,016,955 |
Ownership interests (%) | 20.10% | 20.10% |
Net assets attributable to ownership interests | ₩ 6,997,560 | ₩ 4,970,267 |
Cost-book value differentials | 1,132,440 | 1,161,855 |
Carrying amount | 8,130,000 | 6,132,122 |
KEB HanaCard Co., Ltd. [member] | ||
Disclosure of associates [Line Items] | ||
Net assets | ₩ 1,516,162 | ₩ 1,411,839 |
Ownership interests (%) | 15.00% | 15.00% |
Net assets attributable to ownership interests | ₩ 227,424 | ₩ 211,776 |
Cost-book value differentials | 53,564 | 54,022 |
Carrying amount | 280,988 | ₩ 265,798 |
SK China Company Ltd. [member] | ||
Disclosure of associates [Line Items] | ||
Net assets | ₩ 1,612,899 | |
Ownership interests (%) | 27.30% | 9.60% |
Net assets attributable to ownership interests | ₩ 439,857 | |
Cost-book value differentials | 86,242 | |
Carrying amount | ₩ 526,099 | ₩ 46,354 |
Investments in Associates an114
Investments in Associates and Joint Ventures - Reconciliations of Financial Information of Significant Associates to Carrying Amounts of Investments in Associates in the Consolidated Financial Statements (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
SK hynix Inc. [member] | ||
Disclosure of associates [Line Items] | ||
Equity method effective ownership interest | 20.69% | 20.69% |
Investments in Associates an115
Investments in Associates and Joint Ventures - Details of the Changes in Investments in Associates and Joint Ventures Accounted for using the Equity Method (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | ₩ 7,404,323 | ₩ 6,896,293 |
Acquisition and disposition | 161,824 | 67,048 |
Share of profit (loss) | 2,164,427 | 536,759 |
Other comprehensive income (loss) | (140,748) | (9,991) |
Impairment loss | (1,311) | (6,972) |
Other increase (decrease) | (50,077) | (78,814) |
Ending balance | 9,538,438 | 7,404,323 |
SK China Company Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 46,354 | 43,814 |
Acquisition and disposition | 113,803 | |
Share of profit (loss) | 2,707 | 2,257 |
Other comprehensive income (loss) | (36,783) | 283 |
Other increase (decrease) | 400,018 | |
Ending balance | 526,099 | 46,354 |
Korea IT fund [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 263,850 | 260,456 |
Share of profit (loss) | (8,815) | 14,864 |
Other comprehensive income (loss) | 3,371 | (5,388) |
Other increase (decrease) | (1,403) | (6,082) |
Ending balance | 257,003 | 263,850 |
KEB HanaCard Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 265,798 | 254,177 |
Share of profit (loss) | 15,494 | 11,658 |
Other comprehensive income (loss) | (304) | (37) |
Ending balance | 280,988 | 265,798 |
NanoEnTek, Inc. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 39,514 | 45,008 |
Share of profit (loss) | (733) | (3,950) |
Other comprehensive income (loss) | (63) | (1,544) |
Ending balance | 38,718 | 39,514 |
SK Industrial Development China Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 74,717 | 86,324 |
Share of profit (loss) | 5,154 | (6,298) |
Other comprehensive income (loss) | (1,092) | (5,309) |
Other increase (decrease) | (78,779) | |
Ending balance | 74,717 | |
SK Technology Innovation Company [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 47,488 | 45,891 |
Share of profit (loss) | 433 | 162 |
Other comprehensive income (loss) | (5,410) | 1,435 |
Ending balance | 42,511 | 47,488 |
HappyNarae Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 17,236 | 17,095 |
Acquisition and disposition | 688 | |
Share of profit (loss) | 3,929 | 240 |
Other comprehensive income (loss) | 20 | (99) |
Ending balance | 21,873 | 17,236 |
SK hynix Inc. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 6,132,122 | 5,624,493 |
Share of profit (loss) | 2,175,887 | 572,086 |
Other comprehensive income (loss) | (90,349) | 8,593 |
Other increase (decrease) | (87,660) | (73,050) |
Ending balance | 8,130,000 | 6,132,122 |
SK MENA Investment B.V. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 15,451 | 14,929 |
Share of profit (loss) | 131 | 63 |
Other comprehensive income (loss) | (1,729) | 459 |
Ending balance | 13,853 | 15,451 |
SKY Property Mgmt. Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 263,225 | 251,166 |
Share of profit (loss) | 2,362 | 16,066 |
Other comprehensive income (loss) | 1,141 | (4,007) |
Other increase (decrease) | (266,728) | |
Ending balance | 263,225 | |
S.M. Culture & Contents Co., Ltd [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Acquisition and disposition | 65,341 | |
Share of profit (loss) | (375) | |
Ending balance | 64,966 | |
Xinan Tianlong Science and Technology Co., Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 25,880 | 25,767 |
Share of profit (loss) | 113 | |
Ending balance | 25,880 | |
Daehan Kanggun BcN Co., Ltd. and others [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 115,181 | 161,058 |
Acquisition and disposition | (1,306) | (26,798) |
Share of profit (loss) | (6,924) | (13,179) |
Other comprehensive income (loss) | (2,723) | 754 |
Impairment loss | (1,311) | (6,972) |
Other increase (decrease) | (6,438) | 318 |
Ending balance | 96,479 | 115,181 |
Associates [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 7,306,816 | 6,850,322 |
Acquisition and disposition | 178,526 | (45,658) |
Share of profit (loss) | 2,189,261 | 593,409 |
Other comprehensive income (loss) | (133,921) | (5,471) |
Impairment loss | (1,311) | (6,972) |
Other increase (decrease) | (40,990) | (78,814) |
Ending balance | 9,498,381 | 7,306,816 |
Candle Media Co., Ltd. [Member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 20,144 | |
Acquisition and disposition | (18,860) | |
Share of profit (loss) | (673) | |
Other comprehensive income (loss) | (611) | |
Xian Tianlong Science and Technology Co., Ltd. [Member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 25,880 | |
Share of profit (loss) | 11 | |
Ending balance | 25,891 | 25,880 |
PT XL planet digital [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 27,512 | 23,108 |
Acquisition and disposition | (18,864) | 29,123 |
Share of profit (loss) | (8,648) | (24,719) |
Ending balance | 27,512 | |
PT. Melon Indonesia [Member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 4,339 | |
Acquisition and disposition | (3,488) | |
Share of profit (loss) | 918 | |
Other comprehensive income (loss) | (1,769) | |
Dogus Planet, Inc. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 20,081 | 15,118 |
Acquisition and disposition | 2,162 | 18,722 |
Share of profit (loss) | (2,267) | (11,008) |
Other comprehensive income (loss) | (5,985) | (2,751) |
Ending balance | 13,991 | 20,081 |
Finnq Co. Ltd. [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 24,174 | |
Acquisition and disposition | 24,580 | |
Share of profit (loss) | (7,691) | (406) |
Other comprehensive income (loss) | (9) | |
Ending balance | 16,474 | 24,174 |
Celcom Planet and others [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 25,740 | 3,406 |
Acquisition and disposition | 43,769 | |
Share of profit (loss) | (6,228) | (21,435) |
Other comprehensive income (loss) | (833) | |
Other increase (decrease) | (9,087) | |
Ending balance | 9,592 | 25,740 |
Joint ventures [member] | ||
Disclosure of investments in associates and joint ventures [Line Items] | ||
Beginning balance | 97,507 | 45,971 |
Acquisition and disposition | (16,702) | 112,706 |
Share of profit (loss) | (24,834) | (56,650) |
Other comprehensive income (loss) | (6,827) | (4,520) |
Other increase (decrease) | (9,087) | |
Ending balance | ₩ 40,057 | ₩ 97,507 |
Investments in Associates an116
Investments in Associates and Joint Ventures - Details of the Changes in Investments in Associates and Joint Ventures Accounted for using the Equity Method (Parenthetical) (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of investments in associates and joint ventures [Line Items] | |||
Loss on disposal shares | ₩ 36,024 | ₩ 2,919 | ₩ 2,599 |
Gain on disposal of shares | 4,890 | 459,349 | ₩ 10,786 |
PT XL planet digital [member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Loss on disposal shares | ₩ 27,900 | ||
PT. Melon Indonesia [Member] | |||
Disclosure of investments in associates and joint ventures [Line Items] | |||
Gain on disposal of shares | ₩ 11,634 |
Investments in Associates an117
Investments in Associates and Joint Ventures - Details of Cumulative Unrecognized Equity Method Losses (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Disclosure of associates [Line Items] | |
Unrecognized loss (profit) | ₩ (6,665) |
Unrecognized loss (profit), cumulative loss | 7,416 |
Unrecognized change in equity | 0 |
Unrecognized change in equity, cumulative loss | 365 |
Wave City Development Co., Ltd. [member] | |
Disclosure of associates [Line Items] | |
Unrecognized loss (profit) | (1,190) |
Unrecognized loss (profit), cumulative loss | 2,100 |
Unrecognized change in equity | 0 |
Daehan Kanggun BcN Co., Ltd. and others [member] | |
Disclosure of associates [Line Items] | |
Unrecognized loss (profit) | (5,475) |
Unrecognized loss (profit), cumulative loss | 5,316 |
Unrecognized change in equity | 0 |
Unrecognized change in equity, cumulative loss | ₩ 365 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | ₩ 10,144,882 | ₩ 10,374,212 | ₩ 10,371,256 |
Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 35,844,640 | 35,339,956 | |
Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (25,696,088) | (24,963,296) | |
Accumulated impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (3,670) | (2,448) | |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 862,861 | 835,909 | 812,947 |
Land [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 862,861 | 835,909 | |
Buildings and structures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 882,650 | 899,972 | 911,129 |
Buildings and structures [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 1,638,749 | 1,604,863 | |
Buildings and structures [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (756,099) | (704,891) | |
Structures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 378,575 | 358,955 | 344,221 |
Structures [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 866,909 | 812,010 | |
Structures [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (488,334) | (453,055) | |
Machinery [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 7,079,798 | 7,036,050 | 7,342,009 |
Machinery [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 30,343,739 | 29,705,088 | |
Machinery [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (23,262,762) | (22,667,047) | |
Machinery [member] | Accumulated impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (1,179) | (1,991) | |
Other property and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 531,057 | 563,034 | 473,438 |
Other property and equipment [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 1,722,441 | 1,701,794 | |
Other property and equipment [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (1,188,893) | (1,138,303) | |
Other property and equipment [member] | Accumulated impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (2,491) | (457) | |
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 409,941 | 680,292 | ₩ 487,512 |
Construction in progress [member] | Gross amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | ₩ 409,941 | ₩ 680,292 |
Property and Equipment - Change
Property and Equipment - Changes in Property and Equipment (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | ₩ 10,374,212 | ₩ 10,371,256 |
Acquisition | 2,759,356 | 2,663,003 |
Disposal | (60,116) | (74,157) |
Transfer | (480,611) | (202,774) |
Depreciation | (2,444,648) | (2,380,133) |
Impairment | (3,012) | (2,983) |
Business Combination | 315 | |
Other | (614) | |
Ending balance | 10,144,882 | 10,374,212 |
Land [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 835,909 | 812,947 |
Acquisition | 13,093 | 2,464 |
Disposal | (4,449) | (3,514) |
Transfer | 18,308 | 24,012 |
Ending balance | 862,861 | 835,909 |
Buildings and structures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 899,972 | 911,129 |
Acquisition | 5,098 | 4,637 |
Disposal | (477) | (9,176) |
Transfer | 29,614 | 43,910 |
Depreciation | (51,557) | (50,528) |
Ending balance | 882,650 | 899,972 |
Structures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 358,955 | 344,221 |
Acquisition | 46,614 | 33,802 |
Disposal | (74) | (33) |
Transfer | 8,386 | 15,145 |
Depreciation | (35,306) | (34,180) |
Ending balance | 378,575 | 358,955 |
Machinery [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,036,050 | 7,342,009 |
Acquisition | 656,731 | 660,629 |
Disposal | (41,692) | (45,672) |
Transfer | 1,644,045 | 1,234,737 |
Depreciation | (2,214,524) | (2,152,725) |
Impairment | (778) | (2,928) |
Other | (34) | |
Ending balance | 7,079,798 | 7,036,050 |
Other property and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 563,034 | 473,438 |
Acquisition | 720,431 | 807,047 |
Disposal | (9,252) | (6,052) |
Transfer | (597,404) | (568,644) |
Depreciation | (143,261) | (142,700) |
Impairment | (2,234) | (55) |
Business Combination | 315 | |
Other | (572) | |
Ending balance | 531,057 | 563,034 |
Construction in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 680,292 | 487,512 |
Acquisition | 1,317,389 | 1,154,424 |
Disposal | (4,172) | (9,710) |
Transfer | (1,583,560) | (951,934) |
Other | (8) | |
Ending balance | ₩ 409,941 | ₩ 680,292 |
Investment Property - Additiona
Investment Property - Additional Information (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about investment property [abstract] | |||
Investment property | ₩ 0 | ₩ 0 | ₩ 15,071 |
Investment Property - Changes i
Investment Property - Changes in Investment Properties (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2016KRW (₩) | |
Disclosure of detailed information about investment property [line items] | |
Beginning balance | ₩ 15,071 |
Reclassification | (14,968) |
Depreciation | (103) |
Ending balance | 0 |
Land [member] | |
Disclosure of detailed information about investment property [line items] | |
Beginning balance | 10,634 |
Reclassification | (10,634) |
Buildings and structures [member] | |
Disclosure of detailed information about investment property [line items] | |
Beginning balance | 4,437 |
Reclassification | (4,334) |
Depreciation | ₩ (103) |
Investment Property - Income an
Investment Property - Income and Expenses from Investment Property (Detail) - KRW (₩) ₩ in Millions | 7 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about investment property [abstract] | ||
Rent revenue | ₩ 386 | ₩ 850 |
Operating expense | ₩ (114) | ₩ (240) |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | ₩ 1,915,017 | ₩ 1,932,452 | ₩ 1,908,590 |
Shinsegi Telecom, Inc. [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | 1,306,236 | 1,306,236 | |
SK Broadband Co., Ltd. [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | 358,443 | 358,443 | |
Other acquisitions [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | ₩ 250,338 | ₩ 267,773 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | ₩ 1,915,017 | ₩ 1,932,452 | ₩ 1,908,590 |
Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | ₩ 50,710 | 17,269 | |
Shinsegi Telecom, Inc. [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Annual discount rate | 6.60% | ||
Annual growth rate | 0.40% | ||
Goodwill | ₩ 1,306,236 | 1,306,236 | |
SK Broadband Co., Ltd. [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Annual discount rate | 5.10% | ||
Annual growth rate | 1.00% | ||
Goodwill | ₩ 358,443 | ₩ 358,443 |
Goodwill - Details of the Chang
Goodwill - Details of the Changes in Goodwill (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [abstract] | ||
Beginning balance | ₩ 1,932,452 | ₩ 1,908,590 |
Acquisition | 35,221 | 19,974 |
Impairment loss | (33,441) | |
Other | (19,215) | 3,888 |
Ending balance | ₩ 1,915,017 | ₩ 1,932,452 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | ₩ 3,586,965 | ₩ 3,776,354 | ₩ 2,304,784 |
Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 9,410,703 | 8,812,457 | |
Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (5,773,902) | (4,993,784) | |
Accumulated impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (49,836) | (42,319) | |
Frequency usage rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 2,176,940 | 2,580,828 | 1,103,517 |
Frequency usage rights [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 4,843,955 | 4,843,955 | |
Frequency usage rights [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (2,667,015) | (2,263,127) | |
Land usage rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 15,750 | 20,834 | 26,576 |
Land usage rights [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 65,841 | 65,148 | |
Land usage rights [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (50,091) | (44,314) | |
Industrial rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 111,347 | 121,200 | 116,542 |
Industrial rights [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 166,082 | 160,897 | |
Industrial rights [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (54,735) | (39,697) | |
Development costs [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 4,103 | 4,871 | 7,472 |
Development costs [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 140,460 | 141,727 | |
Development costs [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (134,828) | (136,446) | |
Development costs [member] | Accumulated impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (1,529) | (410) | |
Facility usage rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 36,451 | 41,788 | 48,019 |
Facility usage rights [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 153,438 | 151,906 | |
Facility usage rights [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (116,987) | (110,118) | |
Customer relations [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 4,035 | 6,652 | 7,175 |
Customer relations [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 20,796 | 19,742 | |
Customer relations [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (16,761) | (13,090) | |
Club memberships [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 73,614 | 74,039 | 91,507 |
Club memberships [Member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 108,382 | 113,161 | |
Club memberships [Member] | Accumulated impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (34,768) | (39,122) | |
Other [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 1,164,725 | 926,142 | ₩ 903,976 |
Other [member] | Gross amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 3,911,749 | 3,315,921 | |
Other [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (2,733,485) | (2,386,992) | |
Other [member] | Accumulated impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | ₩ (13,539) | ₩ (2,787) |
Intangible Assets - Details of
Intangible Assets - Details of the Changes in Intangible Assets (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | ₩ 3,776,354 | ₩ 2,304,784 |
Acquisition | 146,457 | 1,974,752 |
Disposal | (24,195) | 30,049 |
Transfer | 497,300 | 233,683 |
Amortiza- tion | (802,871) | (688,322) |
Impairment | (18,493) | (21,523) |
Business combina- tion | 14,122 | 3,029 |
Others | (1,709) | |
Ending balance | 3,586,965 | 3,776,354 |
Frequency usage rights [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 2,580,828 | 1,103,517 |
Acquisition | 1,810,076 | |
Amortiza- tion | (403,888) | (332,765) |
Ending balance | 2,176,940 | 2,580,828 |
Land usage rights [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 20,834 | 26,576 |
Acquisition | 3,689 | 5,338 |
Disposal | (972) | 1,921 |
Transfer | 200 | |
Amortiza- tion | (8,001) | (9,159) |
Ending balance | 15,750 | 20,834 |
Industrial rights [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 121,200 | 116,542 |
Acquisition | 2,677 | 6,226 |
Disposal | (28) | 148 |
Transfer | (5,635) | 5,004 |
Amortiza- tion | (6,870) | (6,424) |
Business combina- tion | 4 | |
Others | (1) | |
Ending balance | 111,347 | 121,200 |
Development costs [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 4,871 | 7,472 |
Acquisition | 3,813 | 1,404 |
Disposal | (9) | |
Transfer | (793) | 338 |
Amortiza- tion | (2,660) | (3,933) |
Impairment | (1,119) | (410) |
Ending balance | 4,103 | 4,871 |
Facility usage rights [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 41,788 | 48,019 |
Acquisition | 2,805 | 2,181 |
Disposal | (36) | 50 |
Transfer | 129 | 231 |
Amortiza- tion | (8,235) | (8,593) |
Ending balance | 36,451 | 41,788 |
Customer relations [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 6,652 | 7,175 |
Acquisition | 1,054 | 499 |
Amortiza- tion | (3,671) | (4,051) |
Business combina- tion | 3,029 | |
Ending balance | 4,035 | 6,652 |
Club memberships [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 74,039 | 91,507 |
Acquisition | 5,023 | 7,983 |
Disposal | (3,452) | 7,624 |
Transfer | 122 | |
Impairment | (769) | (17,827) |
Others | (1,349) | |
Ending balance | 73,614 | 74,039 |
Other [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 926,142 | 903,976 |
Acquisition | 127,396 | 141,045 |
Disposal | (19,698) | 20,306 |
Transfer | 503,277 | 228,110 |
Amortiza- tion | (369,546) | (323,397) |
Impairment | (16,605) | (3,286) |
Business combina- tion | 14,118 | |
Others | (359) | |
Ending balance | ₩ 1,164,725 | ₩ 926,142 |
Intangible Assets - Details 128
Intangible Assets - Details of the Changes in Intangible Assets (Parenthetical) (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss | ₩ 18,493 | ₩ 21,523 |
2.6GHz license [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Purchase price of frequency rights | ₩ 1,330,100 | |
Remaining consideration payment period | 10 years | |
2.1GHz license [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Purchase price of frequency rights | ₩ 568,500 | |
Remaining consideration payment period | 5 years |
Intangible Assets - Research an
Intangible Assets - Research and Development Expenditures Recognized as Expense (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [abstract] | |||
Research and development costs expensed as incurred | ₩ 395,276 | ₩ 344,787 | ₩ 315,790 |
Intangible Assets - Carrying Am
Intangible Assets - Carrying Amount and Residual Useful Lives of Frequency Usage Rights (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 3,586,965 | ₩ 3,776,354 | ₩ 2,304,784 |
800MHz license [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 141,904 | ||
Description | Frequency usage rights relating to CDMA and LTE service | ||
Commencement of amortization | 2011-07 | ||
Completion of amortization | 2021-01 | ||
1.8GHz license [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 502,480 | ||
Description | Frequency usage rights relating to LTE service | ||
Commencement of amortization | 2013-09 | ||
Completion of amortization | 2021-12 | ||
WiBro service for 2.3GHz band [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 2,957 | ||
Description | WiBro service | ||
Commencement of amortization | 2012-03 | ||
Completion of amortization | 2019-03 | ||
2.6GHz license [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 1,092,770 | ||
Description | Frequency usage rights relating to LTE service | ||
Commencement of amortization | 2016-09 | ||
Completion of amortization | 2026-12 | ||
2.1GHz license [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 436,829 | ||
Description | Frequency usage rights relating to W-CDMA and LTE service | ||
Commencement of amortization | 2016-12 | ||
Completion of amortization | 2021-12 | ||
Frequency usage rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amount | ₩ 2,176,940 | ₩ 2,580,828 | ₩ 1,103,517 |
Borrowings and Debentures - Sho
Borrowings and Debentures - Short-term Borrowings (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Short-term borrowings | ₩ 130,000 | ₩ 2,614 |
Shortterm Borrowings From Shinhan Bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual interest rate | 2.85% | |
Short-term borrowings | ₩ 30,000 | |
Short-term borrowings from Woori Bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual interest rate | 2.88% | |
Short-term borrowings | ₩ 2,614 | |
Commercial Paper From KEB Hana Bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual interest rate | 1.67% | |
Short-term borrowings | ₩ 50,000 | |
Bank Overdraft From KEB Hana Bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual interest rate | 3.17% | |
Short-term borrowings | ₩ 30,000 | |
Bank overdraft From Shinhan Bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual interest rate | 3.38% | |
Short-term borrowings | ₩ 20,000 |
Borrowings and Debentures - Lon
Borrowings and Debentures - Long-term Borrowings (Detail) $ in Thousands, ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2017KRW (₩) | Dec. 31, 2017USD ($) | Dec. 31, 2016KRW (₩) | Dec. 31, 2016USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Long-term borrowings | ₩ 252,817 | ₩ 172,907 | ||
Less current installments | (41,331) | (33,191) | ||
Long-term borrowings, excluding current installments | 211,486 | 139,716 | ||
Gross amount [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term borrowings | ₩ 253,771 | 174,493 | ||
Gross amount [member] | Korea Development Bank Longterm Borrowings with 3.20 Percent Interest Due March 31 2020 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 3.20% | 3.20% | ||
Maturity | Mar. 31, 2020 | |||
Long-term borrowings | ₩ 30,000 | |||
Gross amount [member] | KEB Hana bank longterm borrowings with3.18 percent interest due February 28 2019 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 3.18% | 3.18% | ||
Maturity | Feb. 28, 2019 | |||
Long-term borrowings | ₩ 40,000 | |||
Gross amount [member] | Kookmin Bank long-term borrowings with 1.29% interest due March 15, 2017 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 1.29% | 1.29% | ||
Maturity | Mar. 15, 2017 | |||
Long-term borrowings | 500 | |||
Gross amount [member] | Kookmin Bank Longterm Borrowings With 1.95 Percent Interest Due March 15 2018 [member ] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 1.95% | 1.95% | ||
Maturity | Mar. 15, 2018 | |||
Long-term borrowings | ₩ 717 | 3,583 | ||
Gross amount [member] | Korea Development Bank Longterm Borrowings With 1.99 Percent Interest Due Jul. 30, 2019 [member ] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 1.99% | 1.99% | ||
Maturity | Jul. 30, 2019 | |||
Long-term borrowings | ₩ 22,750 | 35,750 | ||
Gross amount [member] | Korea Development Bank Longterm Borrowings With 1.99 Percent Interest Due Jul. 30, 2019 Two [member ] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 1.99% | 1.99% | ||
Maturity | Jul. 30, 2019 | |||
Long-term borrowings | ₩ 5,833 | 9,167 | ||
Gross amount [member] | Korea Development Bank Longterm Borrowings With 2.27 Percent Interest Due Dec. 20, 2021 [member ] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term borrowings | ₩ 49,000 | 49,000 | ||
Gross amount [member] | Korea Development Bank Longterm Borrowings With 2.37 Percent Interest Due Dec. 21, 2022 [member ] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 2.37% | 2.37% | ||
Maturity | Dec. 21, 2022 | |||
Long-term borrowings | ₩ 50,000 | |||
Gross amount [member] | Export Kreditnamnden long-term borrowings with 1.70% interest due April 29, 2022 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 1.70% | 1.70% | ||
Maturity | Apr. 29, 2022 | |||
Long-term borrowings | ₩ 55,471 | $ 51,775 | 76,493 | $ 63,296 |
Gross amount [member] | Korea Development Bank long-term borrowings with 2.32% interest due December 20, 2021 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Annual interest rate (%) | 2.27% | 2.27% | ||
Maturity | Dec. 20, 2021 | |||
Present value discount [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term borrowings | ₩ (954) | ₩ (1,586) |
Borrowings and Debentures - Deb
Borrowings and Debentures - Debentures (Detail) SFr in Thousands, $ in Thousands, $ in Thousands, ₩ in Millions | 12 Months Ended | |||||
Dec. 31, 2017KRW (₩) | Dec. 31, 2017USD ($) | Dec. 31, 2016KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016AUD ($) | Dec. 31, 2016CHF (SFr) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures | ₩ 7,086,187 | ₩ 7,194,206 | ||||
Less current installments of bonds | (1,489,617) | (855,276) | ||||
Debentures, excluding current installments, net | 5,596,570 | 6,338,930 | ||||
Gross amount [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures | ₩ 7,107,216 | 7,220,064 | ||||
Gross amount [member] | Unsecured private bonds with 5.00% interest due 2016 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 5.00% | 5.00% | ||||
Debentures | ₩ 200,000 | 200,000 | ||||
Gross amount [member] | Unsecured private bonds with 4.22% interest due 2021 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,021 | |||||
Annual interest rate (%) | 4.22% | 4.22% | ||||
Debentures | ₩ 190,000 | 190,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.24% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 3.24% | 3.24% | ||||
Debentures | ₩ 170,000 | 170,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.30% interest due 2022 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 3.30% | 3.30% | ||||
Debentures | ₩ 140,000 | 140,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.45% interest due 2032 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,032 | |||||
Annual interest rate (%) | 3.45% | 3.45% | ||||
Debentures | ₩ 90,000 | 90,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.03% interest due 2023 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,023 | |||||
Annual interest rate (%) | 3.03% | 3.03% | ||||
Debentures | ₩ 230,000 | 230,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.22% interest due 2033 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,033 | |||||
Annual interest rate (%) | 3.22% | 3.22% | ||||
Debentures | ₩ 130,000 | 130,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.30% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 3.30% | 3.30% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.64% interest due 2024 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,024 | |||||
Annual interest rate (%) | 3.64% | 3.64% | ||||
Debentures | ₩ 150,000 | 150,000 | ||||
Gross amount [member] | Unsecured private bonds with 4.72% interest due 2029 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,029 | |||||
Annual interest rate (%) | 4.72% | 4.72% | ||||
Debentures | ₩ 60,278 | 59,600 | ||||
Gross amount [member] | Unsecured private bonds with 2.53% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 2.53% | 2.53% | ||||
Debentures | ₩ 160,000 | 160,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.66% interest due 2021 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,021 | |||||
Annual interest rate (%) | 2.66% | 2.66% | ||||
Debentures | ₩ 150,000 | 150,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.82% interest due 2024 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,024 | |||||
Annual interest rate (%) | 2.82% | 2.82% | ||||
Debentures | ₩ 190,000 | 190,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.40% interest due 2022 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.40% | 2.40% | ||||
Debentures | ₩ 100,000 | 100,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.49% interest due 2025 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,025 | |||||
Annual interest rate (%) | 2.49% | 2.49% | ||||
Debentures | ₩ 150,000 | 150,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.61% interest due 2030 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,030 | |||||
Annual interest rate (%) | 2.61% | 2.61% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.89% interest due 2018 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 1.89% | 1.89% | ||||
Debentures | ₩ 90,000 | 90,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.66% interest due 2025 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,025 | |||||
Annual interest rate (%) | 2.66% | 2.66% | ||||
Debentures | ₩ 70,000 | 70,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.82% interest due 2030 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,030 | |||||
Annual interest rate (%) | 2.82% | 2.82% | ||||
Debentures | ₩ 90,000 | 90,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.07% interest due 2018 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 2.07% | 2.07% | ||||
Debentures | ₩ 80,000 | 80,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.55% interest due 2025 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,025 | |||||
Annual interest rate (%) | 2.55% | 2.55% | ||||
Debentures | ₩ 100,000 | 100,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.75% interest due 2035 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,035 | |||||
Annual interest rate (%) | 2.75% | 2.75% | ||||
Debentures | ₩ 70,000 | 70,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.65% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 1.65% | 1.65% | ||||
Debentures | ₩ 70,000 | 70,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.80% interest due 2021 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,021 | |||||
Annual interest rate (%) | 1.80% | 1.80% | ||||
Debentures | ₩ 100,000 | 100,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.08% interest due 2026 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,026 | |||||
Annual interest rate (%) | 2.08% | 2.08% | ||||
Debentures | ₩ 90,000 | 90,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.24% interest due 2036 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,036 | |||||
Annual interest rate (%) | 2.24% | 2.24% | ||||
Debentures | ₩ 80,000 | 80,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.62% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 1.62% | 1.62% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.71% interest due 2021 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,021 | |||||
Annual interest rate (%) | 1.71% | 1.71% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.97% interest due 2026 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,026 | |||||
Annual interest rate (%) | 1.97% | 1.97% | ||||
Debentures | ₩ 120,000 | 120,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.17% interest due 2031 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,031 | |||||
Annual interest rate (%) | 2.17% | 2.17% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured corporate bonds with 1.93% interest due 2020 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate (%) | 1.93% | 1.93% | ||||
Debentures | ₩ 60,000 | |||||
Gross amount [member] | Unsecured corporate bonds with 2.17% interest due 2022.[member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.17% | 2.17% | ||||
Debentures | ₩ 120,000 | |||||
Gross amount [member] | Unsecured corporate bonds with 2.55% interest due 2027 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,027 | |||||
Annual interest rate (%) | 2.55% | 2.55% | ||||
Debentures | ₩ 100,000 | |||||
Gross amount [member] | Unsecured corporate bonds with 2.65% interest due 2032 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,032 | |||||
Annual interest rate (%) | 2.65% | 2.65% | ||||
Debentures | ₩ 90,000 | |||||
Gross amount [member] | Unsecured corporate bonds with 2.39% interest due 2020 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate (%) | 2.39% | 2.39% | ||||
Debentures | ₩ 100,000 | |||||
Gross amount [member] | Unsecured corporate bonds with 2.63% interest due 2022 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.63% | 2.63% | ||||
Debentures | ₩ 80,000 | |||||
Gross amount [member] | Unsecured private bonds with 4.28% interest due 2017 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,017 | |||||
Annual interest rate (%) | 4.28% | 4.28% | ||||
Debentures | ₩ 100,000 | |||||
Gross amount [member] | Unsecured private bonds with 3.27% interest due 2017 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,017 | |||||
Annual interest rate (%) | 3.27% | 3.27% | ||||
Debentures | 100,000 | |||||
Gross amount [member] | Unsecured private bonds with 3.05% interest due 2016 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures | 120,000 | |||||
Gross amount [member] | Unsecured private bonds with 3.49% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 3.49% | 3.49% | ||||
Debentures | ₩ 210,000 | 210,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.76% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 2.76% | 2.76% | ||||
Debentures | ₩ 130,000 | 130,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.23% interest due 2018 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 2.23% | 2.23% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.49% interest due 2020 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate (%) | 2.49% | 2.49% | ||||
Debentures | ₩ 160,000 | 160,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.43% interest due 2020 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate (%) | 2.43% | 2.43% | ||||
Debentures | ₩ 140,000 | 140,000 | ||||
Gross amount [member] | Unsecured private bonds with 2.18% interest due 2020 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate (%) | 2.18% | 2.18% | ||||
Debentures | ₩ 130,000 | 130,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.58% interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 1.58% | 1.58% | ||||
Debentures | ₩ 50,000 | 50,000 | ||||
Gross amount [member] | Unsecured private bonds with 1.77% interest due 2021 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,021 | |||||
Annual interest rate (%) | 1.77% | 1.77% | ||||
Debentures | ₩ 120,000 | 120,000 | ||||
Gross amount [member] | Unsecured private bonds with 3.24% interest due 2016 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures | ₩ 150,000 | |||||
Gross amount [member] | Unsecured private bonds with 3.48% interest due 2017 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,017 | |||||
Annual interest rate (%) | 3.48% | 3.48% | ||||
Debentures | ₩ 30,000 | 20,000 | ||||
Gross amount [member] | Unsecured corporate bonds with 2.70% interest due 2022 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.70% | 2.70% | ||||
Debentures | ₩ 140,000 | |||||
Gross amount [member] | Corporate bonds with 1.00 percent interest due 2019 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,019 | |||||
Annual interest rate (%) | 1.00% | 1.00% | ||||
Debentures | ₩ 5,558 | |||||
Gross amount [member] | Unsecured global bonds with 6.63% interest due 2027 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,027 | |||||
Annual interest rate (%) | 6.63% | 6.63% | ||||
Debentures | ₩ 428,560 | $ 400,000 | 483,400 | $ 400,000 | ||
Gross amount [member] | Unsecured private Swiss bonds with 1.75% interest due 2017 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,017 | |||||
Annual interest rate (%) | 1.75% | 1.75% | ||||
Debentures | 354,399 | SFr 300,000 | ||||
Gross amount [member] | Unsecured global bonds with 2.13% interest due 2018 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 2.13% | 2.13% | ||||
Debentures | ₩ 749,980 | $ 700,000 | 845,950 | 700,000 | ||
Gross amount [member] | Unsecured private Australian bonds with 4.75% interest due 2017 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,017 | |||||
Annual interest rate (%) | 4.75% | 4.75% | ||||
Debentures | 261,615 | $ 300,000 | ||||
Gross amount [member] | Floating rate notes with 3M Libor + 0.88% interest due 2020 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,020 | |||||
Annual interest rate description | 3M Libor + | |||||
Annual interest rate adjustment (%) | 0.88% | 0.88% | ||||
Debentures | ₩ 321,420 | $ 300,000 | 362,550 | 300,000 | ||
Gross amount [member] | Foreign global bonds with 2.88% interest due 2018 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,018 | |||||
Annual interest rate (%) | 2.88% | 2.88% | ||||
Debentures | ₩ 321,420 | $ 300,000 | 362,550 | $ 300,000 | ||
Gross amount [member] | Unsecured corporate bonds with 2 point 84 percent interest due 2027 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,027 | |||||
Annual interest rate (%) | 2.84% | 2.84% | ||||
Gross amount [member] | Unsecured corporate bonds with 2.26% interest due 2022 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.26% | 2.26% | ||||
Gross amount [member] | Unsecured corporate bonds with 2.34% interest due 2022 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity | 2,022 | |||||
Annual interest rate (%) | 2.34% | 2.34% | ||||
Discounts on bonds [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures | ₩ (21,029) | ₩ (25,858) |
Borrowings and Debentures - 134
Borrowings and Debentures - Debentures (Parenthetical) (Detail) ₩ in Millions | Dec. 31, 2017KRW (₩) |
Disclosure of detailed information about borrowings [line items] | |
Excess carrying amount of financial liabilities designated at fair value through profit or loss over the principal amount | ₩ 10,278 |
3M LIBOR [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Annual interest rate (%) | 1.69% |
Long-term Payables Other - Summ
Long-term Payables Other - Summary of Long-term Payables - Other (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other non-current payables [abstract] | ||
Payables related to acquisition of frequency usage rights | ₩ 1,328,630 | ₩ 1,602,943 |
Other | 18,133 | 21,647 |
Other non current payables | ₩ 1,346,763 | ₩ 1,624,590 |
Long-term Payables Other - Deta
Long-term Payables Other - Details of Long-term Payables - Other, Which Consist of Payables Related to the Acquisition of Frequency Usage Rights (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Long-term payables - other | ₩ 1,630,381 | ₩ 1,904,716 |
Less current installments of long-term payables - other | (301,751) | (301,773) |
Carrying amount at December 31 | 1,328,630 | 1,602,943 |
Gross amount [member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term payables - other | 1,710,255 | 2,013,122 |
Present value discount [Member] | ||
Disclosure of financial liabilities [line items] | ||
Long-term payables - other | ₩ (79,874) | ₩ (108,406) |
Long-term Payables Other - Repa
Long-term Payables Other - Repayment Schedule of the Principal Amount of Long-term Payables - Other Related to Acquisition of Frequency Usage Rights (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | ₩ 1,630,381 | ₩ 1,904,716 |
Gross amount [member] | ||
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | 1,710,255 | ₩ 2,013,122 |
Gross amount [member] | Less than 1 year [Member] | ||
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | 302,867 | |
Gross amount [member] | 1 - 3 years [Member] | ||
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | 605,734 | |
Gross amount [member] | 3 - 5 years [Member] | ||
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | 402,624 | |
Gross amount [member] | More than 5 years [member] | ||
Disclosure of financial liabilities [line items] | ||
Payables related to acquisition of frequency usage rights | ₩ 399,030 |
Provisions - Changes in Provisi
Provisions - Changes in Provisions (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Beginning balance | ₩ 97,917 | ₩ 70,205 |
Increase | 17,683 | 48,924 |
Utilization | (15,690) | (20,342) |
Reversal | (15,229) | (913) |
Other | 45 | 43 |
Ending balance | 84,726 | 97,917 |
Current | 52,057 | 66,227 |
Non-current | 32,669 | 31,690 |
Provision for installment of handset subsidy [Member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 24,710 | 5,670 |
Increase | 2 | 37,530 |
Utilization | (8,898) | (18,490) |
Reversal | (11,940) | |
Ending balance | 3,874 | 24,710 |
Current | 3,874 | 19,939 |
Non-current | 4,771 | |
Provision for restoration [Member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 64,679 | 59,954 |
Increase | 12,066 | 6,677 |
Utilization | (2,517) | (1,082) |
Reversal | (1,006) | (913) |
Other | 45 | 43 |
Ending balance | 73,267 | 64,679 |
Current | 40,598 | 37,760 |
Non-current | 32,669 | 26,919 |
Emission allowance [Member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 2,788 | 1,477 |
Increase | 4,663 | 1,480 |
Utilization | (518) | (169) |
Reversal | (2,283) | |
Ending balance | 4,650 | 2,788 |
Current | 4,650 | 2,788 |
Other provisions [Member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 5,740 | 3,104 |
Increase | 952 | 3,237 |
Utilization | (3,757) | (601) |
Ending balance | 2,935 | 5,740 |
Current | ₩ 2,935 | ₩ 5,740 |
Lease - Expected Future Lease P
Lease - Expected Future Lease Payments and Lease Revenues (Detail) ₩ in Millions | Dec. 31, 2017KRW (₩) |
Disclosure of detailed information about arrangements involving legal form of lease [line items] | |
Minimum lease payments | ₩ 151,161 |
Revenues | 2,842 |
Less than 1 year [Member] | |
Disclosure of detailed information about arrangements involving legal form of lease [line items] | |
Minimum lease payments | 49,289 |
Revenues | 1,926 |
1-5 years [member] | |
Disclosure of detailed information about arrangements involving legal form of lease [line items] | |
Minimum lease payments | 101,872 |
Revenues | ₩ 916 |
Defined Benefit Liabilities (As
Defined Benefit Liabilities (Assets) - Details of Defined Benefit Liabilities (Assets) (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||
Present value of defined benefit obligations | ₩ 679,625 | ₩ 595,667 |
Fair value of plan assets | (663,617) | (555,175) |
Defined benefit assets | (45,952) | (30,247) |
Defined benefit liabilities | ₩ 61,960 | ₩ 70,739 |
Defined Benefit Liabilities 141
Defined Benefit Liabilities (Assets) - Principal Actuarial Assumptions (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate for defined benefit obligations | 2.58% | 1.90% |
Expected rate of salary increase | 3.08% | 2.49% |
Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate for defined benefit obligations | 4.03% | 2.96% |
Expected rate of salary increase | 5.93% | 6.09% |
Defined Benefit Liabilities 142
Defined Benefit Liabilities (Assets) - Changes in Defined Benefit Obligations (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | ₩ 125,526 | ₩ 114,528 | ₩ 106,764 |
Interest cost | 2,170 | 3,615 | 3,257 |
Retirement benefit obligation [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Beginning balance | 595,667 | 525,269 | |
Current service cost | 125,526 | 114,528 | |
Interest cost | 15,991 | 13,441 | |
Remeasurement | |||
- Demographic assumption | (287) | 677 | |
- Financial assumption | (20,731) | (2,462) | |
- Adjustment based on experience | 11,561 | 6,229 | |
Benefit paid | (60,883) | (55,350) | |
Others | 12,781 | (6,665) | |
Ending balance | ₩ 679,625 | ₩ 595,667 | ₩ 525,269 |
Defined Benefit Liabilities 143
Defined Benefit Liabilities (Assets) - Changes in Plan Assets (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of fair value of plan assets [line items] | |||
Interest income | ₩ (2,170) | ₩ (3,615) | ₩ (3,257) |
Plan assets [member] | |||
Disclosure of fair value of plan assets [line items] | |||
Beginning balance | 555,175 | 426,413 | |
Interest income | 13,821 | 9,826 | |
Remeasurement | (5,540) | (6,320) | |
Contributions | 155,834 | 159,687 | |
Benefit paid | (60,006) | (34,247) | |
Others | 4,333 | (184) | |
Ending balance | ₩ 663,617 | ₩ 555,175 | ₩ 426,413 |
Defined Benefit Liabilities 144
Defined Benefit Liabilities (Assets) - Additional Information (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩)yr | |
Disclosure of defined benefit plans [abstract] | |
Expected contributions in 2018 | ₩ | ₩ 146,086 |
Weighted average durations of defined benefit obligations | yr | 8.17 |
Defined Benefit Liabilities 145
Defined Benefit Liabilities (Assets) - Total Amount of Expenses Recognized in Profit and Loss (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of defined benefit plans [abstract] | |||
Current service cost | ₩ 125,526 | ₩ 114,528 | ₩ 106,764 |
Net interest cost | 2,170 | 3,615 | 3,257 |
Total amount of expenses recognized in profit and loss | ₩ 127,696 | ₩ 118,143 | ₩ 110,021 |
Defined Benefit Liabilities 146
Defined Benefit Liabilities (Assets) - Details of Plan Assets (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||
Equity instruments | ₩ 15,567 | ₩ 13,640 |
Debt instruments | 134,710 | 95,359 |
Short-term financial instruments, etc. | 513,340 | 446,176 |
Fair value of plan assets | ₩ 663,617 | ₩ 555,175 |
Defined Benefit Liabilities 147
Defined Benefit Liabilities (Assets) - Effects on Defined Benefit Obligations if Each of Significant Actuarial Assumptions Changes Within Expectable and Reasonable Range (Detail) ₩ in Millions | Dec. 31, 2017KRW (₩) |
Discount rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase in defined benefit obligations | ₩ (24,702) |
Increase in assumption | 0.50% |
Decrease in defined benefit obligations | ₩ 26,808 |
Decrease in assumption | 0.50% |
Expected salary increase rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase in defined benefit obligations | ₩ 26,988 |
Increase in assumption | 0.50% |
Decrease in defined benefit obligations | ₩ (25,138) |
Decrease in assumption | 0.50% |
Derivative Instruments - Curren
Derivative Instruments - Currency and Interest Rate Swap Contracts under Cash Flow Hedge Accounting (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Fixed-to-fixed cross currency swap, Jul, 20, 2007 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Jul. 20, 2007 |
Hedging Instrument(Hedged item) | Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000) |
Hedged risk | Foreign currency risk |
Financial institution | Morgan Stanley and four other banks |
Duration of contract | Jul. 20, 2007 ~ Jul. 20, 2027 |
Fixed-to-fixed Cross Currency Swap, Nov. 1, 2012 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Nov. 1, 2012 |
Hedging Instrument(Hedged item) | Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 700,000) |
Hedged risk | Foreign currency risk |
Financial institution | Standard Chartered and eight other banks |
Duration of contract | Nov. 1, 2012~ May. 1, 2018 |
Fixed-to-fixed Cross Currency Swap, Mar. 7, 2013 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Mar. 7, 2013 |
Hedging Instrument(Hedged item) | Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of USD 300,000) |
Hedged risk | Foreign currency risk and interest rate risk |
Financial institution | DBS bank |
Duration of contract | Mar. 7, 2013 ~ Mar. 7, 2020 |
Fixed-to-fixed Cross Currency Swap, Oct. 29, 2013 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Oct. 29, 2013 |
Hedging Instrument(Hedged item) | Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 300,000) |
Hedged risk | Foreign currency risk |
Financial institution | Korea Development Bank and others |
Duration of contract | Oct. 29, 2013 ~ Oct. 26, 2018 |
Fixed-to-fixed Cross Currency Swap, Dec. 16, 2013 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Dec. 16, 2013 |
Hedging Instrument(Hedged item) | Fixed-to-fixed cross currency swap (U.S. dollar borrowing amounting to USD 51,775) |
Hedged risk | Foreign currency risk |
Financial institution | Deutsche bank |
Duration of contract | Dec. 16, 2013 ~ Apr. 29, 2022 |
Floating-to-fixed Interest Rate Swap, Dec. 20, 2016 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Dec. 20, 2016 |
Hedging Instrument(Hedged item) | Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 49,000) |
Hedged risk | Interest rate risk |
Financial institution | Korea Development Bank |
Duration of contract | Dec. 20, 2016~ Dec. 20, 2021 |
Floating-to-fixed Interest Rate Swap, Jan. 30, 2017 [Member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Jan. 30, 2017 |
Hedging Instrument(Hedged item) | Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 28,583) |
Hedged risk | Interest rate risk |
Financial institution | Korea Development Bank |
Duration of contract | Nov. 10, 2016~ Jul. 30, 2019 |
Floating-to-fixed Interest Rate Swap, Mar. 31, 2017 [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Mar. 31, 2017 |
Hedging Instrument(Hedged item) | Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 30,000) |
Hedged risk | Interest rate risk |
Financial institution | Korea Development Bank |
Duration of contract | Mar. 31, 2017- Mar. 31, 2020 |
Floating-to-fixed interest rate swap, Dec. 21, 2017 [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Borrowing date | Dec. 21, 2017 |
Hedging Instrument(Hedged item) | Floating-to-fixed interest rate swap (Korean won borrowing amounting to KRW 50,000) |
Hedged risk | Interest rate risk |
Financial institution | Korea Development Bank |
Duration of contract | Dec. 5, 2017- Dec. 21, 2022 |
Derivative Instruments - Detail
Derivative Instruments - Details of Fair Values of the Above Derivatives Recorded in Assets or Liabilities (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | ₩ 253,213 | ₩ 214,770 |
Short-term derivative financial liabilities | (28,406) | (86,950) |
Long-term derivative financial liabilities | (11,064) | (203) |
Derivative financial liabilities | (39,470) | ₩ (87,153) |
Redeemable convertible preferred shares issued by Bluehole INC [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 222,257 | |
Structured bonds [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 9,054 | |
Fixed-to-fixed cross currency swap, Jul, 20, 2007 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 21,554 | |
Floating-to-fixed Interest Rate Swap, Dec. 20, 2016 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 307 | |
Floating-to-fixed Interest Rate Swap, Jan. 30, 2017 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 43 | |
Floating-to-fixed interest rate swap, Dec. 21, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | (2) | |
Fixed-to-fixed Cross Currency Swap, Nov. 1, 2012 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Short-term derivative financial liabilities | (27,791) | |
Fixed-to-fixed Cross Currency Swap, Oct. 29, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Short-term derivative financial liabilities | (615) | |
Fixed-to-fixed Cross Currency Swap, Mar. 7, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (7,613) | |
Fixed-to-fixed Cross Currency Swap, Dec. 16, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (3,106) | |
Floating-to-fixed Interest Rate Swap, Mar. 31, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (345) | |
Valuation gain (loss) on derivatives [Member] | Fixed-to-fixed cross currency swap, Jul, 20, 2007 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 21,554 | |
Valuation gain (loss) on derivatives [Member] | Floating-to-fixed Interest Rate Swap, Dec. 20, 2016 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 307 | |
Valuation gain (loss) on derivatives [Member] | Floating-to-fixed Interest Rate Swap, Jan. 30, 2017 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 43 | |
Valuation gain (loss) on derivatives [Member] | Floating-to-fixed interest rate swap, Dec. 21, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | (2) | |
Valuation gain (loss) on derivatives [Member] | Fixed-to-fixed Cross Currency Swap, Nov. 1, 2012 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Short-term derivative financial liabilities | (27,791) | |
Valuation gain (loss) on derivatives [Member] | Fixed-to-fixed Cross Currency Swap, Oct. 29, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Short-term derivative financial liabilities | (615) | |
Valuation gain (loss) on derivatives [Member] | Fixed-to-fixed Cross Currency Swap, Mar. 7, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (7,613) | |
Valuation gain (loss) on derivatives [Member] | Fixed-to-fixed Cross Currency Swap, Dec. 16, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (3,106) | |
Valuation gain (loss) on derivatives [Member] | Floating-to-fixed Interest Rate Swap, Mar. 31, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial liabilities | (345) | |
Held for trading [Member] | Structured bonds [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | 9,054 | |
Embedded derivatives [member] | Redeemable convertible preferred shares issued by Bluehole INC [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Long-term derivative financial assets | ₩ 222,257 |
Derivative Instruments - Det150
Derivative Instruments - Details of Fair Values of the Above Derivatives Recorded in Assets or Liabilities (Parenthetical) (Detail) - Dec. 31, 2017 | KRW (₩) | USD ($) |
Structured bonds [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | ₩ | ₩ 50,000,000,000 | |
Fixed-to-fixed cross currency swap, Jul, 20, 2007 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | $ | $ 400,000,000 | |
Floating-to-fixed Interest Rate Swap, Dec. 20, 2016 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | ₩ | 49,000,000 | |
Floating-to-fixed Interest Rate Swap, Jan. 30, 2017 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | ₩ | 28,583,000 | |
Floating-to-fixed interest rate swap, Dec. 21, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | ₩ | 50,000,000 | |
Fixed-to-fixed Cross Currency Swap, Nov. 1, 2012 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | $ | 700,000,000 | |
Fixed-to-fixed Cross Currency Swap, Oct. 29, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | $ | 300,000,000 | |
Fixed-to-fixed Cross Currency Swap, Mar. 7, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | $ | 300,000,000 | |
Fixed-to-fixed Cross Currency Swap, Dec. 16, 2013 [Member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | $ | $ 51,775,000 | |
Floating-to-fixed Interest Rate Swap, Mar. 31, 2017 [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Bonds face value | ₩ | ₩ 30,000,000 |
Share Capital and Capital Su151
Share Capital and Capital Surplus (Deficit) and Others - Additional Information (Detail) | Dec. 31, 2017₩ / shares |
Disclosure of classes of share capital [abstract] | |
Common stock, par value | ₩ 500 |
Share Capital and Capital Su152
Share Capital and Capital Surplus (Deficit) and Others - Number of Authorized, Issued and Outstanding Common Shares and the Details of Capital Surplus (Deficit) and Others (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of classes of share capital [abstract] | |||
Number of authorized shares | 220,000,000 | 220,000,000 | |
Number of issued shares | 80,745,711 | 80,745,711 | 80,745,711 |
Share capital | |||
Common share | ₩ 44,639 | ₩ 44,639 | |
Capital surplus (deficit) and others: | |||
Paid-in surplus | 2,915,887 | 2,915,887 | |
Treasury shares(Note 24) | (2,260,626) | (2,260,626) | |
Share option(Note 26) | 414 | ||
Others | (857,912) | (854,000) | |
Capital Surplus | ₩ (202,237) | ₩ (198,739) |
Share Capital and Capital Su153
Share Capital and Capital Surplus (Deficit) and Others - Details of Shares Outstanding (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reconciliation of number of shares outstanding [abstract] | |||
Issued shares | 80,745,711 | 80,745,711 | 80,745,711 |
Treasury shares | 10,136,551 | 10,136,551 | |
Outstanding shares | 70,609,160 | 70,609,160 |
Treasury Shares - Summary of Tr
Treasury Shares - Summary of Treasury Shares (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [abstract] | ||
Number of shares | 10,136,551 | 10,136,551 |
Acquisition cost | ₩ 2,260,626 | ₩ 2,260,626 |
Hybrid Bonds - Summary of Hybri
Hybrid Bonds - Summary of Hybrid Bonds (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Private hybrid bonds | ₩ 398,518 | ₩ 398,518 |
Private hybrid bonds [Member] | ||
Type | Unsecured subordinated bearer bond | |
Issuance date | Jun. 7, 2013 | |
Maturity | June 7, 2073 | |
Annual interest rate(%) | 4.21% | |
Gross amount [member] | ||
Private hybrid bonds | ₩ 400,000 | |
Issuance costs [Member] | ||
Private hybrid bonds | ₩ (1,482) |
Hybrid Bonds - Summary of Hy156
Hybrid Bonds - Summary of Hybrid Bonds (Parenthetical) (Detail) - Private hybrid bonds [Member] | 12 Months Ended |
Dec. 31, 2017 | |
After 10 years [Member] | |
Annual interest rate, additional premium | 0.25% |
Annual interest rate, additional premium period | 10 years |
After 25 years [Member] | |
Annual interest rate, additional premium | 0.75% |
Annual interest rate, additional premium period | 25 years |
Share Option - Summary of Terms
Share Option - Summary of Terms and Conditions Related to Grants of Share Options under Share Option Program (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Series 1-1 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares | 22,168 |
Exercise price | ₩ 246,750 |
Exercise period | Mar. 25, 2019 ~ Mar. 24, 2022 |
Vesting conditions | 2 years' service from the grant date |
Series 1-2 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant date | March 24, 2017 |
Types of shares to be issued | 66,504 of registered common shares |
Grant method | Reissue of treasury shares sha |
Number of shares | 22,168 |
Exercise price | ₩ 266,490 |
Exercise period | Mar. 25, 2020 ~ Mar. 24, 2023 |
Vesting conditions | 3 years' service from the grant date |
Series 1-3 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares | 22,168 |
Exercise price | ₩ 287,810 |
Exercise period | Mar. 25, 2021 ~ Mar. 24, 2024 |
Vesting conditions | 4 years' service from the grant date |
Share Option - Summary of Share
Share Option - Summary of Share Compensation Expense Recognized (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Disclosure Of Share Based Compensation Expense [Line Items] | |
Share compensation expense | ₩ 414 |
Major Share Options Transactions [Member] | |
Disclosure Of Share Based Compensation Expense [Line Items] | |
Share compensation expense | 977 |
Events including and after reporting period [member] | |
Disclosure Of Share Based Compensation Expense [Line Items] | |
Share compensation expense | ₩ 1,391 |
Share Option - Summary of Input
Share Option - Summary of Inputs Used in Binomial Option Pricing Model (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩)yr | |
Series 1-1 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free interest rate | 1.86% |
Estimated option's life | yr | 5 |
Share price (Closing price on the preceding day in won) | ₩ 262,500 |
Expected volatility | 13.38% |
Expected dividends | 3.80% |
Exercise price | ₩ 246,750 |
Per share fair value of the option | ₩ 27,015 |
Series 1-2 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free interest rate | 1.95% |
Estimated option's life | yr | 6 |
Share price (Closing price on the preceding day in won) | ₩ 262,500 |
Expected volatility | 13.38% |
Expected dividends | 3.80% |
Exercise price | ₩ 266,490 |
Per share fair value of the option | ₩ 20,240 |
Series 1-3 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free interest rate | 2.07% |
Estimated option's life | yr | 7 |
Share price (Closing price on the preceding day in won) | ₩ 262,500 |
Expected volatility | 13.38% |
Expected dividends | 3.80% |
Exercise price | ₩ 287,810 |
Per share fair value of the option | ₩ 15,480 |
Retained Earnings - Summary of
Retained Earnings - Summary of Retained Earnings (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of reserves within equity [abstract] | ||
Legal reserve | ₩ 22,320 | ₩ 22,320 |
Reserve for research & manpower development | 60,001 | |
Reserve for business expansion | 10,171,138 | 9,871,138 |
Reserve for technology development | 3,071,300 | 2,826,300 |
Appropriated retained earnings | 13,264,758 | 12,779,759 |
Unappropriated retained earnings | 4,571,188 | 3,173,405 |
Retained earnings | ₩ 17,835,946 | ₩ 15,953,164 |
Retained Earnings - Additional
Retained Earnings - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of reserves within equity [abstract] | |
Legal reserve as a percentage of cash dividends paid | 10.00% |
Legal reserve as a percentage of outstanding share capital | 50.00% |
Reserves - Details of Reserves,
Reserves - Details of Reserves, Net of Taxes (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of reserves within equity [abstract] | |||
Valuation gain on available-for-sale financial assets | ₩ 168,211 | ₩ 12,534 | |
Other comprehensive loss of investments in associates | (320,060) | (179,167) | |
Valuation loss on derivatives | (73,828) | (96,418) | |
Foreign currency translation differences for foreign operations | (9,050) | 36,868 | |
Total reserves, net of taxes | ₩ (234,727) | ₩ (226,183) | ₩ 9,303 |
Reserves - Changes in Reserves
Reserves - Changes in Reserves (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | ₩ (226,183) | ₩ 9,303 |
Changes, net of taxes | (8,544) | (235,486) |
Balance at December 31 | (234,727) | (226,183) |
Valuation gain (loss) on available-for-sale financial assets [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | 12,534 | 232,316 |
Changes, net of taxes | 155,677 | (219,782) |
Balance at December 31 | 168,211 | 12,534 |
Other comprehensive loss of investments in associates [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | (179,167) | (169,520) |
Changes, net of taxes | (140,893) | (9,647) |
Balance at December 31 | (320,060) | (179,167) |
Valuation gain (loss) on derivatives [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | (96,418) | (83,200) |
Changes, net of taxes | 22,590 | (13,218) |
Balance at December 31 | (73,828) | (96,418) |
Foreign currency translation differences for foreign operations [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | 36,868 | 29,707 |
Changes, net of taxes | (45,918) | 7,161 |
Balance at December 31 | ₩ (9,050) | ₩ 36,868 |
Reserves - Changes in Valuation
Reserves - Changes in Valuation Gain on Available-for-sale Financial Assets (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | ₩ (226,183) | ₩ 9,303 |
Balance at December 31 | (234,727) | (226,183) |
Valuation gain (loss) on available-for-sale financial assets [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | 12,534 | 232,316 |
Amount recognized as other comprehensive income during the year, net of taxes | 132,586 | 4,606 |
Amount reclassified through profit or loss, net of taxes | 23,091 | (224,388) |
Balance at December 31 | ₩ 168,211 | ₩ 12,534 |
Reserves - Changes in Valuat165
Reserves - Changes in Valuation Gain (Loss) on Derivatives (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | ₩ (226,183) | ₩ 9,303 |
Amount recognized as other comprehensive loss during the year, net of taxes | 73,828 | |
Balance at December 31 | (234,727) | (226,183) |
Valuation gain (loss) on derivatives [Member] | ||
Disclosure of reserves within equity [Line Items] | ||
Balance at January 1 | (96,418) | (83,200) |
Amount recognized as other comprehensive loss during the year, net of taxes | 17,965 | (12,213) |
Amount reclassified through profit or loss, net of taxes | 4,625 | (1,005) |
Balance at December 31 | ₩ (73,828) | ₩ (96,418) |
Other Operating Income and E166
Other Operating Income and Expenses - Details of Other Operating Income and Expenses (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Operating Income: | |||
Gain on disposal of property and equipment and intangible assets | ₩ 13,991 | ₩ 6,908 | ₩ 7,140 |
Others | 18,006 | 59,640 | 23,795 |
Other operating income | 31,997 | 66,548 | 30,935 |
Other Operating Expenses: | |||
Communication | 27,973 | 31,196 | 43,979 |
Utilities | 299,825 | 277,497 | 270,621 |
Taxes and dues | 27,819 | 35,020 | 36,118 |
Repair | 333,101 | 326,076 | 312,517 |
Research and development | 395,276 | 344,787 | 315,790 |
Training | 32,853 | 33,303 | 37,278 |
Bad debt for accounts receivable - trade | 34,584 | 37,820 | 60,450 |
Travel | 24,095 | 25,263 | 27,860 |
Supplies and other | 111,170 | 113,930 | 176,248 |
Loss on disposal of property and equipment and intangible assets | 60,086 | 63,797 | 21,392 |
Impairment loss on other investment securities | 9,003 | 24,033 | 42,966 |
Impairment loss on property and equipment and intangible assets | 54,946 | 24,506 | 35,845 |
Donations | 112,634 | 96,633 | 72,454 |
Bad debt for accounts receivable - other | 5,793 | 40,312 | 15,323 |
Others | 101,589 | 49,593 | 55,536 |
Other operating expenses | ₩ 1,630,747 | ₩ 1,523,766 | ₩ 1,524,377 |
Finance Income and Costs - Deta
Finance Income and Costs - Details of Finance Income and Costs (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance Income: | |||
Interest income | ₩ 76,045 | ₩ 54,353 | ₩ 45,884 |
Gain on sale of accounts receivable - trade | 18,548 | 18,638 | |
Dividends | 12,416 | 19,161 | 16,102 |
Gain on foreign currency transactions | 13,676 | 14,186 | 18,923 |
Gain on foreign currency translations | 7,110 | 5,085 | 5,090 |
Gain on disposal of long-term investment securities | 4,890 | 459,349 | 10,786 |
Gain on valuation of derivatives | 223,943 | 4,132 | 1,927 |
Reversal of impairment loss on available-for-sale financial assets | 9,900 | ||
Gain relating to financial assets at fair value through profit or loss | 33 | 25 | |
Gain relating to financial liability at fair value through profit or loss | 121 | 5,188 | |
Finance income | 366,561 | 575,050 | 103,900 |
Finance Costs: | |||
Interest expense | 299,100 | 290,454 | 297,662 |
Loss on sale of accounts receivable - trade | 9,682 | ||
Loss on foreign currency transactions | 19,263 | 16,765 | 17,931 |
Loss on foreign currency translations | 8,419 | 3,991 | 4,750 |
Loss on disposal of long-term investment securities | 36,024 | 2,919 | 2,599 |
Loss on settlement of derivatives | 10,031 | 3,428 | 4,845 |
Loss relating to financial liability at fair value through profit or loss | 678 | 4,018 | 526 |
Impairment loss on long-term investment securities | 14,519 | 5,255 | 21,787 |
Other finance costs | 35,900 | ||
Finance costs | ₩ 433,616 | ₩ 326,830 | ₩ 350,100 |
Finance Income and Costs - D168
Finance Income and Costs - Details of Interest Income Included in Finance Income (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest income on cash equivalents and short-term financial instruments | ₩ 28,130 | ₩ 20,203 | ₩ 20,009 |
Interest income on installment receivables and others | 47,915 | 34,150 | 25,875 |
Interest income | ₩ 76,045 | ₩ 54,353 | ₩ 45,884 |
Finance Income and Costs - D169
Finance Income and Costs - Details of Interest Expenses Included in Finance Costs (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest expense on borrowings | ₩ 11,774 | ₩ 7,962 | ₩ 19,577 |
Interest expense on debentures | 228,568 | 239,560 | 238,450 |
Interest on finance lease liabilities | 58 | ||
Others | 58,758 | 42,932 | 39,577 |
Interest expense | ₩ 299,100 | ₩ 290,454 | ₩ 297,662 |
Finance Income and Costs - Fina
Finance Income and Costs - Finance Income and Costs by Category of Financial Instruments (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | ₩ 366,561 | ₩ 575,050 | ₩ 103,900 |
Finance costs | 433,616 | 326,830 | 350,100 |
Available-for-sale financial assets | 158,440 | (223,981) | (3,661) |
Finance costs | 433,616 | 326,830 | 350,100 |
Derivatives designated as hedging instruments | 22,586 | (13,218) | (1,271) |
Other comprehensive income (loss) | (1,013) | (247,331) | 1,835 |
Financial assets, class [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 366,251 | 574,713 | 97,896 |
Finance costs | 123,485 | 27,412 | 45,092 |
Available-for-sale financial assets | 158,440 | (223,981) | (3,661) |
Finance costs | 123,485 | 27,412 | 45,092 |
Derivatives designated as hedging instruments | 1,554 | (172) | (3,248) |
Other comprehensive income (loss) | 159,994 | (224,153) | (6,909) |
Financial liabilities, class [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 310 | 337 | 6,004 |
Finance costs | 310,131 | 299,418 | 305,008 |
Finance costs | 310,131 | 299,418 | 305,008 |
Derivatives designated as hedging instruments | 21,032 | (13,046) | 1,977 |
Other comprehensive income (loss) | 21,032 | (13,046) | 1,977 |
Financial instruments [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Other comprehensive income (loss) | 181,026 | (237,199) | (4,932) |
Financial assets at fair value through profit or loss [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 223,976 | 4,157 | 1,927 |
Finance costs | 2,791 | 4,188 | |
Finance costs | 2,791 | 4,188 | |
Available- for-sale financial assets [Member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 30,598 | 484,300 | 31,220 |
Finance costs | 86,445 | 8,174 | 24,386 |
Finance costs | 86,445 | 8,174 | 24,386 |
Loans and receivables [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 111,677 | 86,256 | 64,749 |
Finance costs | 37,040 | 15,810 | 15,861 |
Finance costs | 37,040 | 15,810 | 15,861 |
Financial liabilities at fair value through profit or loss [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 121 | 5,188 | |
Finance costs | 678 | 4,018 | 526 |
Finance costs | 678 | 4,018 | 526 |
Financial liabilities at amortised cost [Member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance income | 310 | 216 | 816 |
Finance costs | 299,422 | 295,400 | 304,482 |
Finance costs | 299,422 | 295,400 | 304,482 |
Derivatives hedging instrument [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Finance costs | 10,031 | 637 | 657 |
Finance costs | ₩ 10,031 | ₩ 637 | ₩ 657 |
Finance Income and Costs - D171
Finance Income and Costs - Details of Impairment Losses for Financial Assets (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [Line items] | |||
Impairment losses for financial assets | ₩ 54,896 | ₩ 83,387 | ₩ 97,560 |
Available- for-sale financial assets [Member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Impairment losses for financial assets | 14,519 | 5,255 | 21,787 |
Accounts receivable - trade [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Impairment losses for financial assets | 34,584 | 37,820 | 60,450 |
Other receivables [member] | |||
Disclosure of detailed information about financial instruments [Line items] | |||
Impairment losses for financial assets | ₩ 5,793 | ₩ 40,312 | ₩ 15,323 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Expenses (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense | |||
Current year | ₩ 424,773 | ₩ 473,543 | ₩ 417,022 |
Current tax of prior years | (105,158) | (11,925) | (4,124) |
Current tax expense | 319,615 | 461,618 | 412,898 |
Deferred tax expense | |||
Changes in net deferred tax assets | 426,039 | (25,580) | 106,399 |
Others (tax rate differences, etc.) | 183 | ||
Income tax expense | ₩ 745,654 | ₩ 436,038 | ₩ 519,480 |
Income Tax Expense - Difference
Income Tax Expense - Difference Between Income Taxes Computed using the Statutory Corporate Income Tax Rates and the Recorded Income Taxes (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Income taxes at statutory income tax rate | ₩ 823,124 | ₩ 506,804 | ₩ 492,096 |
Non-taxable income | (40,080) | (38,989) | (85,589) |
Non-deductible expenses | 31,285 | 52,648 | 44,770 |
Tax credit and tax reduction | (34,300) | (29,484) | (25,756) |
Changes in unrecognized deferred taxes | 31,857 | (84,276) | 83,623 |
Others (income tax refund, etc.) | (66,232) | 29,335 | 10,336 |
Income tax expense | ₩ 745,654 | ₩ 436,038 | ₩ 519,480 |
Income Tax Expense - Differe174
Income Tax Expense - Difference Between Income Taxes Computed using the Statutory Corporate Income Tax Rates and the Recorded Income Taxes (Parenthetical) (Detail) | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of Income Taxes [Line Items] | ||
Income tax rate | 24.20% | |
Income tax rate for taxable income in excess of W300,000 million [Member] | ||
Disclosure of Income Taxes [Line Items] | ||
Income tax rate | 27.50% |
Income Tax Expense - Deferred T
Income Tax Expense - Deferred Taxes Directly Charged to (Credited from) Equity (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred taxes directly charged to (credited from) equity | ₩ (57,544) | ₩ 90,623 | ₩ 4,669 |
Valuation gain (loss) on available-for-sale financial assets [Member] | |||
Deferred taxes directly charged to (credited from) equity | (55,883) | 82,993 | 2,461 |
Share of other comprehensive income (loss) of associates [Member] | |||
Deferred taxes directly charged to (credited from) equity | (260) | 2 | (63) |
Valuation gain (loss) on derivatives [Member] | |||
Deferred taxes directly charged to (credited from) equity | (3,019) | 4,454 | (448) |
Reserve of remeasurements of defined benefit plans [Member] | |||
Deferred taxes directly charged to (credited from) equity | ₩ 1,618 | ₩ 3,174 | ₩ 2,719 |
Income Tax Expense - Details of
Income Tax Expense - Details of the Changes in Deferred Tax Assets (Liabilities) (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | ₩ (404,654) | ₩ (520,857) | |
Deferred tax expense (income) | (426,039) | 25,580 | |
Directly charged to (credited from) equity | (57,544) | 90,623 | ₩ 4,669 |
Others | (2,324) | ||
Ending | (890,561) | (404,654) | (520,857) |
Allowance for doubtful accounts [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 61,911 | 59,957 | |
Deferred tax expense (income) | 5,091 | 1,954 | |
Ending | 67,002 | 61,911 | 59,957 |
Accrued interest income [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | (616) | (2,567) | |
Deferred tax expense (income) | (1,851) | 1,951 | |
Ending | (2,467) | (616) | (2,567) |
Available- for-sale financial assets [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 101,472 | 30,365 | |
Deferred tax expense (income) | 8,192 | (11,886) | |
Directly charged to (credited from) equity | (55,883) | 82,993 | |
Ending | 53,781 | 101,472 | 30,365 |
Investments in subsidiaries, associates and joint ventures [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | (476,098) | (355,273) | |
Deferred tax expense (income) | (461,271) | (120,827) | |
Directly charged to (credited from) equity | (260) | 2 | |
Ending | (937,629) | (476,098) | (355,273) |
Property and equipment (depreciation) [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | (253,323) | (327,572) | |
Deferred tax expense (income) | 17,980 | 74,249 | |
Ending | (235,343) | (253,323) | (327,572) |
Provisions [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 7,448 | 2,485 | |
Deferred tax expense (income) | (5,136) | 4,963 | |
Ending | 2,312 | 7,448 | 2,485 |
Retirement benefit obligation [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 35,505 | 28,327 | |
Deferred tax expense (income) | 1,237 | 4,004 | |
Directly charged to (credited from) equity | 1,618 | 3,174 | |
Ending | 38,360 | 35,505 | 28,327 |
Valuation gain (loss) on derivatives [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 28,975 | 24,521 | |
Directly charged to (credited from) equity | (3,019) | 4,454 | |
Ending | 25,956 | 28,975 | 24,521 |
Foreign currency translation differences for foreign operations [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 19,369 | 19,517 | |
Deferred tax expense (income) | 2,562 | (148) | |
Ending | 21,931 | 19,369 | 19,517 |
Reserve for research and manpower development [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | (4,775) | (7,162) | |
Deferred tax expense (income) | 2,388 | 2,387 | |
Ending | (2,387) | (4,775) | (7,162) |
Goodwill [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 3,105 | 3,713 | |
Deferred tax expense (income) | (938) | (608) | |
Ending | 2,167 | 3,105 | 3,713 |
Others [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 34,911 | (23,782) | |
Deferred tax expense (income) | (29,248) | 58,693 | |
Others | (2,324) | ||
Ending | 3,339 | 34,911 | (23,782) |
Temporary differences [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | (442,116) | (545,406) | |
Deferred tax expense (income) | (460,994) | 12,667 | |
Directly charged to (credited from) equity | (57,544) | 90,623 | |
Others | (2,324) | ||
Ending | (962,978) | (442,116) | (545,406) |
Tax loss carryforwards [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 37,462 | 24,549 | |
Deferred tax expense (income) | 34,955 | 12,913 | |
Ending | ₩ 72,417 | 37,462 | 24,549 |
Unearned revenue (activation fees) [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning | 2,065 | ||
Deferred tax expense (income) | ₩ (2,065) | ||
Ending | ₩ 2,065 |
Income Tax Expense - Details177
Income Tax Expense - Details of Temporary Differences, Unused Tax Loss Carryforwards and Unused Tax Credits Carryforwards Which are Not Recognized as Deferred Tax Assets (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax loss carryforwards | ₩ 921,309 | ₩ 755,050 |
Unused tax credit carryforwards | 4,092 | 1,211 |
Allowance for doubtful accounts [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Temporary differences | 88,521 | 165,935 |
Investments in subsidiaries, associates and joint ventures [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Temporary differences | 168,268 | 228,025 |
Others [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Temporary differences | ₩ 425,653 | ₩ 320,260 |
Income Tax Expense - Unused Tax
Income Tax Expense - Unused Tax Loss Carryforwards and Unused Tax Credit Carryforwards Which are Not Recognized as Deferred Tax Assets (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax loss carryforwards | ₩ 921,309 | ₩ 755,050 |
Unused tax credit carryforwards | 4,092 | ₩ 1,211 |
Less than 1 year [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax credit carryforwards | 869 | |
1 ~ 2 years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax loss carryforwards | 7,686 | |
Unused tax credit carryforwards | 101 | |
2 ~ 3 years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax loss carryforwards | 358,237 | |
Unused tax credit carryforwards | 119 | |
More than 3 years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax loss carryforwards | 555,386 | |
Unused tax credit carryforwards | ₩ 3,003 |
Earnings per Share - Summary of
Earnings per Share - Summary of Basic Earnings Per Share (Detail) - KRW (₩) ₩ / shares in Units, ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share attributable to owners of the Parent Company: | |||
Profit attributable to owners of the Parent Company | ₩ 2,599,829 | ₩ 1,675,967 | ₩ 1,518,604 |
Interest on hybrid bonds | (16,840) | (16,840) | (16,840) |
Profit attributable to owners of the Parent Company on common shares | ₩ 2,582,989 | ₩ 1,659,127 | ₩ 1,501,764 |
Weighted average number of common shares outstanding | 70,609,160 | 70,609,160 | 71,551,966 |
Basic earnings per share (in won) | ₩ 36,582 | ₩ 23,497 | ₩ 20,988 |
Earnings per Share - Weighted A
Earnings per Share - Weighted Average Number of Common Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Issued common shares at January 1 | 80,745,711 | 80,745,711 | 80,745,711 |
Effect of treasury shares | (10,136,551) | (10,136,551) | (9,193,745) |
Weighted average number of common shares outstanding at December 31 | 70,609,160 | 70,609,160 | 71,551,966 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Potentially dilutive shares | 0 | 0 | 0 |
Dividends - Details of Dividend
Dividends - Details of Dividend Declared (Detail) - KRW (₩) ₩ / shares in Units, ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of dividends [Line Items] | |||
Dividend type | Cash dividends | Cash dividends | Cash dividends |
Number of shares outstanding | 70,609,160 | 70,609,160 | |
Face value (in won) | ₩ 500 | ||
Dividends | ₩ 706,091 | ₩ 706,091 | ₩ 708,111 |
Interim [Member] | |||
Disclosure of dividends [Line Items] | |||
Dividend type | Cash dividends (Interim) | Cash dividends (Interim) | Cash dividends (Interim) |
Number of shares outstanding | 70,609,160 | 70,609,160 | 72,629,160 |
Face value (in won) | ₩ 500 | ₩ 500 | ₩ 500 |
Dividend ratio | 200.00% | 200.00% | 200.00% |
Dividends | ₩ 70,609 | ₩ 70,609 | ₩ 72,629 |
Year-end [Member] | |||
Disclosure of dividends [Line Items] | |||
Dividend type | Cash dividends (Year-end) | Cash dividends (Year-end) | Cash dividends (Year-end) |
Number of shares outstanding | 70,609,160 | 70,609,160 | 70,609,160 |
Face value (in won) | ₩ 500 | ₩ 500 | ₩ 500 |
Dividend ratio | 1800.00% | 1800.00% | 1800.00% |
Dividends | ₩ 635,482 | ₩ 635,482 | ₩ 635,482 |
Dividends - Dividends Yield Rat
Dividends - Dividends Yield Ratios (Detail) - ₩ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Dividends [abstract] | |||
Dividend type | Cash dividends | Cash dividends | Cash dividends |
Dividend per share | ₩ 10,000 | ₩ 10,000 | ₩ 10,000 |
Closing price at year-end | ₩ 267,000 | ₩ 224,000 | ₩ 215,500 |
Dividend yield ratio | 3.75% | 4.46% | 4.64% |
Categories of Financial Inst184
Categories of Financial Instruments - Financial Assets by Category (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | ₩ 1,457,735 | ₩ 1,505,242 | ₩ 768,922 | ₩ 834,429 |
Short-term loans | 62,830 | 58,979 | ||
Financial instruments | 618,002 | 469,705 | ||
Accounts receivable - other | 1,260,835 | 1,121,444 | ||
Short-term investment securities | 144,386 | 107,364 | ||
Accrued income | 3,979 | 2,780 | ||
Long-term investment securities | 887,007 | 828,521 | ||
Other current assets | 3,927 | 3,937 | ||
Accounts receivable - trade | 2,138,755 | 2,261,311 | ||
Long-term loans | 50,874 | 65,476 | ||
Long-term accounts receivable - other | 287,048 | 149,669 | ||
Guarantee deposits | 292,590 | 298,964 | ||
Loans and other receivables | 1,962,083 | 1,701,249 | ||
Derivative financial assets | 253,213 | 214,770 | ||
Financial assets | 7,461,181 | 7,088,162 | ||
Financial assets at fair value through profit or loss [member] | ||||
Disclosure of financial assets [line items] | ||||
Short-term investment securities | 97,003 | |||
Derivative financial assets | 231,311 | 7,368 | ||
Financial assets | 328,314 | 7,368 | ||
Available- for-sale financial assets [Member] | ||||
Disclosure of financial assets [line items] | ||||
Short-term investment securities | 47,383 | 107,364 | ||
Long-term investment securities | 887,007 | 828,521 | ||
Financial assets | 934,390 | 935,885 | ||
Loans and receivables [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 1,457,735 | 1,505,242 | ||
Financial instruments | 618,002 | 469,705 | ||
Accounts receivable - trade | 2,138,755 | 2,261,311 | ||
Loans and other receivables | 1,962,083 | 1,701,249 | ||
Financial assets | 6,176,575 | 5,937,507 | ||
Derivatives hedging instrument [member] | ||||
Disclosure of financial assets [line items] | ||||
Derivative financial assets | 21,902 | 207,402 | ||
Financial assets | ₩ 21,902 | ₩ 207,402 |
Categories of Financial Inst185
Categories of Financial Instruments - Financial Liabilities by Category (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Accounts payable - other | ₩ 1,867,074 | ₩ 1,767,799 |
Accounts payable - trade | 351,711 | 402,445 |
Withholdings | 1,736 | 1,525 |
Derivative financial liabilities | 39,470 | 87,153 |
Accrued expenses | 1,327,906 | 1,125,816 |
Borrowings | 382,817 | 175,521 |
Current portion of long-term payables - other | 302,703 | 301,773 |
Debentures | 7,086,187 | 7,194,206 |
Long-term payables - other | 1,346,763 | 1,624,590 |
Other non-currentliabilities | 19,337 | 21,231 |
Accounts payable - other and others | 4,865,519 | 4,842,734 |
Financial liabilities | 12,725,704 | 12,702,059 |
Financial liabilities at fair value through profit or loss [member] | ||
Disclosure of financial liabilities [line items] | ||
Debentures | 60,278 | 59,600 |
Financial liabilities | 60,278 | 59,600 |
Financial liabilities measured at amortized cost [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable - trade | 351,711 | 402,445 |
Borrowings | 382,817 | 175,521 |
Debentures | 7,025,909 | 7,134,606 |
Accounts payable - other and others | 4,865,519 | 4,842,734 |
Financial liabilities | 12,625,956 | 12,555,306 |
Derivatives hedging instrument [member] | ||
Disclosure of financial liabilities [line items] | ||
Derivative financial liabilities | 39,470 | 87,153 |
Financial liabilities | ₩ 39,470 | ₩ 87,153 |
Financial Risk Management - Mon
Financial Risk Management - Monetary Assets and Liabilities Denominated in Foreign Currencies (Detail) € in Thousands, ¥ in Thousands, $ in Thousands, ₩ in Millions | Dec. 31, 2017KRW (₩) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017JPY (¥) | Dec. 31, 2016KRW (₩) |
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | ₩ 7,461,181 | ₩ 7,088,162 | |||
Monetary liabilities denominated in foreign currencies | 12,725,704 | ₩ 12,702,059 | |||
Currency risk [member] | |||||
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | 160,068 | $ 124,901 | € 15,669 | ¥ 596,059 | |
Monetary liabilities denominated in foreign currencies | 1,949,485 | $ 1,817,808 | € 63 | ¥ 169,729 | |
Currency risk [member] | US Dollar [member] | |||||
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | 133,836 | ||||
Monetary liabilities denominated in foreign currencies | 1,947,599 | ||||
Currency risk [member] | Euro [member] | |||||
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | 20,044 | ||||
Monetary liabilities denominated in foreign currencies | 80 | ||||
Currency risk [member] | Yen [member] | |||||
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | 5,658 | ||||
Monetary liabilities denominated in foreign currencies | 1,611 | ||||
Currency risk [member] | Other currencies [member] | |||||
Disclosure of detailed information about financial instruments [Line items] | |||||
Monetary assets denominated in foreign currencies | 530 | ||||
Monetary liabilities denominated in foreign currencies | ₩ 195 |
Financial Risk Management - Imp
Financial Risk Management - Impact on Income Before Income Tax of a Hypothetical Change in Exchange Rates (Detail) - Currency risk [member] ₩ in Millions | Dec. 31, 2017KRW (₩) |
If increased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | ₩ 8,026 |
If decreased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | (8,026) |
US Dollar [member] | If increased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | 5,590 |
US Dollar [member] | If decreased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | (5,590) |
Euro [member] | If increased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | 1,997 |
Euro [member] | If decreased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | (1,997) |
Yen [member] | If increased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | 405 |
Yen [member] | If decreased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | (405) |
Other currencies [member] | If increased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | 34 |
Other currencies [member] | If decreased by 10% [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Hypothetical increase (reduce) the Group's income before income tax | ₩ (34) |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - KRW (₩) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [Line items] | ||
Long-term borrowings | ₩ 252,817,000,000 | ₩ 172,907,000,000 |
Bonds | 7,086,187,000,000 | 7,194,206,000,000 |
Transfers from level 2 to level 1 | 0 | |
At cost [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Available-for-sale financial assets | ₩ 199,903,000,000 | ₩ 194,600,000,000 |
Interest rate risk [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Hypothetical increase (decrease) in interest rate | 1.00% | |
Hypothetical increase (decrease) in interest rate, effect on income before income taxes | ₩ 707,000,000 | |
Floating-rate [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Long-term borrowings | 228,300,000,000 | |
Bonds | 321,420,000,000 | |
Equity investments [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Available-for-sale financial assets | ₩ 734,487,000,000 |
Financial Risk Management - Max
Financial Risk Management - Maximum Credit Exposure (Detail) - KRW (₩) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | ₩ 6,227,140,000,000 | ₩ 6,158,872,000,000 |
Cash and cash equivalents [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | 1,457,416,000,000 | 1,505,082,000,000 |
Financial instruments [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | 618,002,000,000 | 469,705,000,000 |
Available- for-sale financial assets [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | 19,928,000,000 | 6,755,000,000 |
Accounts receivable - trade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | 2,138,755,000,000 | 2,261,311,000,000 |
Loans and receivables [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | 1,962,083,000,000 | 1,701,249,000,000 |
Derivatives hedging instrument [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum credit exposure | ₩ 30,956,000,000 | ₩ 214,770,000,000 |
Financial Risk Management - Con
Financial Risk Management - Contractual Maturities of Financial Liabilities (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable - trade, carrying amount | ₩ 351,711 | ₩ 402,445 |
Borrowings, carrying amount | 382,817 | 175,521 |
Debentures, carrying amount | 7,086,187 | 7,194,206 |
Accounts payable - other and others, carrying amount | 4,865,519 | ₩ 4,842,734 |
Non-derivative financial liabilities, carrying amount | 12,686,234 | |
Accounts payable - trade, contractual cash flows | 351,711 | |
Borrowings, contractual cash flows | 397,776 | |
Debentures, contractual cash flows | 8,230,952 | |
Accounts payable - other and others, contractual cash flows | 5,030,105 | |
Non-derivative financial liabilities, contractual cash flows | 14,010,544 | |
Less than 1 year [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable - trade, contractual cash flows | 351,711 | |
Borrowings, contractual cash flows | 177,910 | |
Debentures, contractual cash flows | 1,682,206 | |
Accounts payable - other and others, contractual cash flows | 3,519,489 | |
Non-derivative financial liabilities, contractual cash flows | 5,731,316 | |
1-5 years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings, contractual cash flows | 219,866 | |
Debentures, contractual cash flows | 3,675,178 | |
Accounts payable - other and others, contractual cash flows | 1,093,611 | |
Non-derivative financial liabilities, contractual cash flows | 4,988,655 | |
More than 5 years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debentures, contractual cash flows | 2,873,568 | |
Accounts payable - other and others, contractual cash flows | 417,005 | |
Non-derivative financial liabilities, contractual cash flows | ₩ 3,290,573 |
Financial Risk Management - 191
Financial Risk Management - Contractual Maturities of Financial Liabilities (Parenthetical) (Detail) - Dec. 31, 2017 ₩ in Millions | KRW (₩) | USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable - other and others, contractual cash flows | ₩ | ₩ 5,030,105 | |
Celcom planet [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable - other and others, contractual cash flows | $ | $ 12,240,000 |
Financial Risk Management - Per
Financial Risk Management - Periods in Which Cash Flows from Cash Flow Hedge Derivatives are Expected to Occur (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Assets, carrying amount | ₩ 21,902 | |
Liabilities, carrying amount | (39,470) | ₩ (87,153) |
Net assets, carrying amount | (17,568) | |
Assets, contractual cash flows | 17,118 | |
Liabilities, contractual cash flows | (40,220) | |
Net assets, contractual cash flows | (23,102) | |
Less than 1 year [Member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Assets, contractual cash flows | 7,446 | |
Liabilities, contractual cash flows | (28,960) | |
Net assets, contractual cash flows | (21,514) | |
1-5 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Assets, contractual cash flows | 28,075 | |
Liabilities, contractual cash flows | (11,260) | |
Net assets, contractual cash flows | 16,815 | |
More than 5 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Assets, contractual cash flows | (18,403) | |
Net assets, contractual cash flows | ₩ (18,403) |
Financial Risk Management - Deb
Financial Risk Management - Debt-equity Ratio (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of detailed information about financial instruments [abstract] | ||||
Total liabilities | ₩ 15,399,474 | ₩ 15,181,233 | ||
Total equity | ₩ 18,029,195 | ₩ 16,116,430 | ₩ 15,374,096 | ₩ 15,248,270 |
Debt-equity ratios | 85.41% | 94.20% |
Financial Risk - Fair Value and
Financial Risk - Fair Value and Carrying Amount of Financial Assets and Liabilities Including Fair Value Hierarchy (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line items] | ||
Borrowings | ₩ 382,817 | ₩ 175,521 |
Derivative financial assets | 21,902 | |
Debentures | 7,086,187 | 7,194,206 |
Financial assets | 7,461,181 | 7,088,162 |
Derivative financial liabilities | 39,470 | 87,153 |
Financial liabilities | 12,725,704 | 12,702,059 |
Measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets at fair value through profit or loss | 328,314 | 7,368 |
Derivative financial assets | 21,902 | 207,402 |
Available-for-sale financial assets | 734,487 | 741,285 |
Financial assets | 1,084,703 | 956,055 |
Financial liabilities at fair value through profit or loss | 60,278 | 59,600 |
Derivative financial liabilities | 39,470 | 87,153 |
Financial liabilities | 99,748 | 146,753 |
Not measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Borrowings | 383,748 | 177,600 |
Debentures | 7,325,370 | 7,568,361 |
Long-term payables - other | 1,766,451 | 2,103,788 |
Financial liabilities | 9,475,569 | 9,849,749 |
Carrying amount [member] | Measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets at fair value through profit or loss | 328,314 | 7,368 |
Derivative financial assets | 21,902 | 207,402 |
Available-for-sale financial assets | 734,487 | 741,285 |
Financial assets | 1,084,703 | 956,055 |
Financial liabilities at fair value through profit or loss | 60,278 | 59,600 |
Derivative financial liabilities | 39,470 | 87,153 |
Financial liabilities | 99,748 | 146,753 |
Carrying amount [member] | Not measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Borrowings | 382,817 | 175,521 |
Debentures | 7,025,909 | 7,134,606 |
Long-term payables - other | 1,649,466 | 1,926,363 |
Financial liabilities | 9,058,192 | 9,236,490 |
Level 1 [member] | Measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Available-for-sale financial assets | 589,202 | 526,363 |
Financial assets | 589,202 | 526,363 |
Level 2 [member] | Measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets at fair value through profit or loss | 106,057 | 7,368 |
Derivative financial assets | 21,902 | 207,402 |
Available-for-sale financial assets | 47,383 | 107,364 |
Financial assets | 175,342 | 322,134 |
Financial liabilities at fair value through profit or loss | 60,278 | 59,600 |
Derivative financial liabilities | 39,470 | 87,153 |
Financial liabilities | 99,748 | 146,753 |
Level 2 [member] | Not measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Borrowings | 383,748 | 177,600 |
Debentures | 7,325,370 | 7,568,361 |
Long-term payables - other | 1,766,451 | 2,103,788 |
Financial liabilities | 9,475,569 | 9,849,749 |
Level 3 [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Available-for-sale financial assets | 15,342 | |
Level 3 [member] | Measured at fair value [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets at fair value through profit or loss | 222,257 | |
Available-for-sale financial assets | 97,902 | 107,558 |
Financial assets | ₩ 320,159 | ₩ 107,558 |
Financial Risk Management - Int
Financial Risk Management - Interest Rates Used by the Group for the Fair Value Measurement (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | Derivatives hedging instrument [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 1.54% |
Bottom of range [member] | Borrowings and debentures [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 2.48% |
Bottom of range [member] | Long-term payables - other [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 2.23% |
Top of range [member] | Derivatives hedging instrument [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 2.67% |
Top of range [member] | Borrowings and debentures [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 2.55% |
Top of range [member] | Long-term payables - other [member] | |
Disclosure of detailed information about financial instruments [Line items] | |
Interest rate | 2.60% |
Financial Risk Management - Cha
Financial Risk Management - Changes of Financial Assets Classified as Level 3 (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Disclosure of fair value measurement of assets [line items] | |
Balance at beginning | ₩ 31,297,663 |
Balance at ending | 33,428,669 |
Level 3 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Valuation | 222,257 |
Financial assets at fair value through profit or loss [member] | Level 3 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Valuation | 222,257 |
Balance at ending | 222,257 |
Available- for-sale financial assets [Member] | Level 3 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Balance at beginning | 107,558 |
Transfer | 3,938 |
Other comprehensive loss | (8,942) |
Disposal | (4,652) |
Balance at ending | ₩ 97,902 |
Financial Risk Management - 197
Financial Risk Management - Changes of Financial Assets Classified as Level 3 (Parenthetical) (Detail) - Level 3 [member] ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Disclosure of fair value measurement of assets [line items] | |
Financial assets at FVTPL and gain on valuation of derivatives | ₩ 222,257 |
Available-for-sale financial assets | ₩ 15,342 |
Financial Risk Management - Car
Financial Risk Management - Carrying Amount of Financial Instruments Recognized of Which Offset Agreements are Applicable (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets, Gross financial instruments recognized | ₩ 119,791 | ₩ 201,701 |
Financial assets, Amount offset | (92,409) | (103,852) |
Financial assets, Net financial instruments presented on the statements of financial position | 27,382 | 97,849 |
Financial assets, Relevant amount not offset on the statements of financial position, Financial instruments | (19,875) | (87,153) |
Financial assets, Net amount | 7,507 | 10,696 |
Financial liabilities, Gross financial instruments recognized | 112,284 | (191,005) |
Financial liabilities, Amount offset | 92,409 | (103,852) |
Financial liabilities, Net financial instruments presented on the statements of financial position | 19,875 | (87,153) |
Financial liabilities, Relevant amount not offset on the statements of financial position, Financial instruments | 19,875 | (87,153) |
Financial liabilities, Net amount | 0 | 0 |
Derivatives hedging instrument [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets, Gross financial instruments recognized | 26,645 | 87,566 |
Financial assets, Net financial instruments presented on the statements of financial position | 26,645 | 87,566 |
Financial assets, Relevant amount not offset on the statements of financial position, Financial instruments | (19,875) | (87,153) |
Financial assets, Net amount | 6,770 | 413 |
Financial liabilities, Gross financial instruments recognized | 19,875 | (87,153) |
Financial liabilities, Net financial instruments presented on the statements of financial position | 19,875 | (87,153) |
Financial liabilities, Relevant amount not offset on the statements of financial position, Financial instruments | 19,875 | (87,153) |
Financial liabilities, Net amount | 0 | 0 |
Accounts payable - other and others [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial liabilities, Gross financial instruments recognized | 92,409 | (103,852) |
Financial liabilities, Amount offset | 92,409 | (103,852) |
Financial liabilities, Net amount | 0 | 0 |
Accounts receivable - trade and others [member] | ||
Disclosure of detailed information about financial instruments [Line items] | ||
Financial assets, Gross financial instruments recognized | 93,146 | 114,135 |
Financial assets, Amount offset | (92,409) | (103,852) |
Financial assets, Net financial instruments presented on the statements of financial position | 737 | 10,283 |
Financial assets, Net amount | ₩ 737 | ₩ 10,283 |
Related Parties and Others - Co
Related Parties and Others - Compensation for the Key Management (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [abstract] | |||
Salaries | ₩ 2,169 | ₩ 1,645 | ₩ 1,971 |
Defined benefits plan expenses | 258 | 424 | 626 |
Share option | 414 | ||
Compensation for the key management | ₩ 2,841 | ₩ 2,069 | ₩ 2,597 |
Related Parties and Others - Tr
Related Parties and Others - Transactions with Related Parties (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | ₩ 259,249 | ₩ 221,407 | ₩ 193,284 |
Operating expense and others | 2,266,988 | 2,185,277 | 2,136,720 |
Acquisition of property and equipment | 1,070,246 | 876,996 | 835,880 |
Collection of loans | 204 | 3,194 | 204 |
Loans | 1,100 | 8,977 | |
SK hynix Inc. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 123,873 | 100,861 | 55,949 |
Operating expense and others | 251 | 306 | 2,384 |
Other associates [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 10,720 | 8,018 | 6,397 |
Operating expense and others | 33,389 | 21,853 | 11,917 |
Acquisition of property and equipment | 940 | 1,573 | 1,864 |
Collection of loans | 204 | 3,194 | |
Loans | 1,100 | 690 | |
SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.) [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 1,299 | ||
Operating expense and others | 212,378 | ||
Acquisition of property and equipment | 117 | ||
SK Holdings Co., Ltd. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 25,049 | 23,104 | |
Operating expense and others | 600,600 | 652,855 | |
Acquisition of property and equipment | 283,556 | 235,502 | |
F&U Credit information Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 3,431 | 2,865 | 2,510 |
Operating expense and others | 52,150 | 47,905 | 43,967 |
Acquisition of property and equipment | 153 | ||
HappyNarae Co., Ltd. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 3,025 | 304 | 297 |
Operating expense and others | 29,276 | 15,506 | 6,886 |
Acquisition of property and equipment | 68,472 | 38,984 | 13,495 |
KEB HanaCard Co., Ltd. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 17,873 | 19,730 | 21,414 |
Operating expense and others | 15,045 | 14,804 | 16,057 |
Associates [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 158,922 | 131,778 | 90,416 |
Operating expense and others | 130,111 | 100,374 | 99,755 |
Acquisition of property and equipment | 69,565 | 40,557 | 15,359 |
Collection of loans | 204 | 3,194 | 204 |
Loans | 1,100 | 8,977 | |
SK Engineering & Construction Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 5,865 | 5,916 | 15,598 |
Operating expense and others | 1,077 | 1,739 | 27,243 |
Acquisition of property and equipment | 10,694 | 240,701 | |
SK Networks Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 21,694 | 13,756 | 11,923 |
Operating expense and others | 1,220,251 | 1,131,567 | 1,257,975 |
Acquisition of property and equipment | 671 | 2 | |
SK Networks Services Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 510 | 1,248 | 10,491 |
Operating expense and others | 96,949 | 94,906 | 94,097 |
Acquisition of property and equipment | 6,346 | 6,793 | 6,472 |
SK Telesys Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 417 | 419 | 397 |
Operating expense and others | 51,394 | 52,488 | 48,900 |
Acquisition of property and equipment | 152,659 | 142,605 | 141,870 |
SK TNS Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 137 | 109 | |
Operating expense and others | 37,051 | 48,192 | |
Acquisition of property and equipment | 494,621 | 387,496 | |
SK Energy Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 8,505 | 7,670 | 9,930 |
Operating expense and others | 779 | 834 | 978 |
SK Gas Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 2,727 | 2,500 | 3,561 |
Operating expense and others | 4 | 4 | 2 |
SK Innovation Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 7,639 | 9,757 | |
Operating expense and others | 950 | 915 | |
Acquisition of property and equipment | 1,080 | ||
SK Shipping Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 3,183 | 5,435 | |
Operating expense and others | 35 | ||
Ko-one energy service Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 5,164 | 6,005 | |
Operating expense and others | 44 | 46 | |
SK Infosec Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 1,185 | 230 | |
Operating expense and others | 52,634 | 53,068 | |
Acquisition of property and equipment | 15,648 | 19,882 | |
SKC INFRA SERVICE Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 19 | 43 | |
Operating expense and others | 46,900 | 30,663 | |
Acquisition of property and equipment | 47,163 | 32,141 | |
Miscellaneous other related parties [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 18,233 | 13,437 | 29,409 |
Operating expense and others | 28,209 | 17,626 | 71,314 |
Acquisition of property and equipment | 17 | 246 | 194,945 |
Others [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 75,278 | 66,525 | 81,309 |
Operating expense and others | 1,536,277 | 1,432,048 | 1,500,509 |
Acquisition of property and equipment | ₩ 717,125 | ₩ 600,937 | 583,990 |
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.) [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 20,260 | ||
Operating expense and others | 324,078 | ||
Acquisition of property and equipment | 236,414 | ||
Parent [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 21,559 | ||
Operating expense and others | 536,456 | ||
Acquisition of property and equipment | 236,531 | ||
SK Wyverns Baseball Club., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Operating Operating revenue and others | 3,849 | ||
Operating expense and others | 18,544 | ||
Collection of loans | 204 | ||
Xian Tianlong Science and Technology Co., Ltd. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Loans | ₩ 8,287 |
Related Parties and Others -201
Related Parties and Others - Transactions with Related Parties (Parenthetical) (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [Line Items] | |||
Dividends received | ₩ 12,416 | ₩ 19,161 | ₩ 16,102 |
SK hynix Inc. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends received | 87,660 | 73,050 | 43,830 |
Other associates [Member] | Korea IT fund [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends received | 6,082 | 2,103 | |
Other associates [Member] | Uni SK [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends received | 457 | ||
Other associates [Member] | Korea IT Fund and Others [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends received | 6,597 | ||
SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.) [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends paid by the Parent Company | ₩ 191,416 | ||
SK Holdings Co., Ltd. [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Dividends paid by the Parent Company | ₩ 203,635 | ₩ 203,635 |
Related Parties and Others - Ac
Related Parties and Others - Account Balances with Related Parties (Detail) - KRW (₩) ₩ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loans [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | ₩ 29,790 | ₩ 31,247 |
Loans [member] | Daehan Kanggun BcN Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 22,147 | 22,147 |
Loans [member] | Xian Tianlong Science and Technology Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 7,032 | 8,287 |
Loans [member] | Other associates [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 611 | 813 |
Loans [member] | Associates [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 29,790 | 31,247 |
Accounts receivable - trade and others [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 64,619 | 82,385 |
Accounts receivable - trade and others [member] | SK Holdings Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,068 | 3,519 |
Accounts receivable - trade and others [member] | HappyNarae Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 15 | 18 |
Accounts receivable - trade and others [member] | F&U Credit information Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 21 | 34 |
Accounts receivable - trade and others [member] | SK hynix Inc. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,803 | 22,379 |
Accounts receivable - trade and others [member] | Wave City Development Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 38,412 | 38,412 |
Accounts receivable - trade and others [member] | KEB HanaCard Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 1,427 | 1,619 |
Accounts receivable - trade and others [member] | S.M. Culture & Contents Co., Ltd [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 448 | |
Accounts receivable - trade and others [member] | Other associates [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,272 | 4,191 |
Accounts receivable - trade and others [member] | Associates [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 45,398 | 66,653 |
Accounts receivable - trade and others [member] | SK Engineering & Construction Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,033 | 1,808 |
Accounts receivable - trade and others [member] | SK Networks Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 3,050 | 3,254 |
Accounts receivable - trade and others [member] | SK Networks Services Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 15 | 13 |
Accounts receivable - trade and others [member] | SK Telesys Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 36 | 20 |
Accounts receivable - trade and others [member] | SK TNS Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 3 | 3 |
Accounts receivable - trade and others [member] | SK Innovation Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 4,112 | 1,350 |
Accounts receivable - trade and others [member] | SK Energy Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,965 | 1,213 |
Accounts receivable - trade and others [member] | SK Gas Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 1,941 | 1,769 |
Accounts receivable - trade and others [member] | Miscellaneous other related parties [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 2,998 | 2,783 |
Accounts receivable - trade and others [member] | Others [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts receivable | 17,153 | 12,213 |
Accounts payable - other and others [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 681,916 | 571,711 |
Accounts payable - other and others [member] | SK Holdings Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 148,066 | 149,574 |
Accounts payable - other and others [member] | HappyNarae Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 6,865 | 21,063 |
Accounts payable - other and others [member] | F&U Credit information Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 1,612 | 1,328 |
Accounts payable - other and others [member] | SK hynix Inc. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 94 | 92 |
Accounts payable - other and others [member] | KEB HanaCard Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 11,099 | 7,676 |
Accounts payable - other and others [member] | S.M. Culture & Contents Co., Ltd [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 8,963 | |
Accounts payable - other and others [member] | Other associates [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 1,164 | 945 |
Accounts payable - other and others [member] | Associates [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 29,797 | 31,104 |
Accounts payable - other and others [member] | SK Engineering & Construction Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 69 | 4,975 |
Accounts payable - other and others [member] | SK Networks Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 267,297 | 247,728 |
Accounts payable - other and others [member] | SK Networks Services Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 9,522 | 13,913 |
Accounts payable - other and others [member] | SK Telesys Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 58,346 | 24,918 |
Accounts payable - other and others [member] | SK TNS Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 140,311 | 68,276 |
Accounts payable - other and others [member] | SK Innovation Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 599 | 892 |
Accounts payable - other and others [member] | SK Energy Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 582 | 113 |
Accounts payable - other and others [member] | SK Gas Co., Ltd. [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 9 | 9 |
Accounts payable - other and others [member] | Miscellaneous other related parties [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | 27,318 | 30,209 |
Accounts payable - other and others [member] | Others [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Accounts payable | ₩ 504,053 | ₩ 391,033 |
Related Parties and Others - Ad
Related Parties and Others - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Celcom planet [member] | |
Disclosure of transactions between related parties [Line Items] | |
Payment guarantees for borrowings | $ 12,240,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - KRW (₩) | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and contingencies [Line Items] | ||
Short-term financial instruments as collateral for guarantees | ₩ 616,780,000,000 | ₩ 468,768,000,000 |
Accounts receivables - other | 1,962,083,000,000 | ₩ 1,701,249,000,000 |
Sales of handsets [member] | ||
Commitments and contingencies [Line Items] | ||
Accounts receivables - other | 1,111,614,000,000 | |
Legal proceedings provision [member] | ||
Commitments and contingencies [Line Items] | ||
Provisions for legal claims and litigation | 0 | |
SK Broadband Co., Ltd. [member] | ||
Commitments and contingencies [Line Items] | ||
Properties pledged as collateral for leases on buildings | 4,144,000,000 | |
Short-term financial instruments as collateral for guarantees | ₩ 300,000,000 |
Statements of Cash Flows - Adju
Statements of Cash Flows - Adjustments for Income and Expenses from Operating Activities (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to reconcile profit (loss) [abstract] | |||
Interest income | ₩ (76,045) | ₩ (54,353) | ₩ (45,884) |
Dividend | (12,416) | (19,161) | (16,102) |
Gain on foreign currency translation | (7,110) | (5,085) | (5,090) |
Gain on disposal of long-term investment securities | (4,890) | (459,349) | (10,786) |
Gain on valuation of derivatives | (223,943) | (4,132) | (1,927) |
Gain relating to investments in associates and joint ventures, net | (2,245,732) | (544,501) | (786,140) |
Gain on sale of accounts receivable - trade | (18,548) | (18,638) | |
Gain on disposal of property and equipment and intangible assets | (13,991) | (6,908) | (7,140) |
Gain relating to financial assets at fair value through profit or loss | (33) | (25) | |
Gain related to financial liabilities at fair value through profit or loss | (121) | (5,188) | |
Reversal of impairment loss on available-for-sale financial assets | (9,900) | ||
Other income | (1,129) | (2,123) | (7,577) |
Interest expenses | 299,100 | 290,454 | 297,662 |
Loss on foreign currency translation | 8,419 | 3,991 | 4,750 |
Loss on disposal of long-term investment securities | 36,024 | 2,919 | 2,599 |
Other finance costs | 14,519 | 5,255 | 21,787 |
Loss on sale of accounts receivable - trade | 9,682 | ||
Loss on settlement of derivatives | 10,031 | 3,428 | 4,845 |
Income tax expense | 745,654 | 436,038 | 519,480 |
Expense related to defined benefit plan | 127,696 | 118,143 | 110,021 |
Share option | 414 | ||
Depreciation and amortization | 3,247,519 | 3,068,558 | 2,993,486 |
Bad debt expense | 34,584 | 37,820 | 60,450 |
Loss on disposal of property and equipment and intangible assets | 60,086 | 63,797 | 21,392 |
Impairment loss on property and equipment and intangible assets | 54,946 | 24,506 | 35,845 |
Loss relating to financial liabilities at fair value through profit or loss | 678 | 4,018 | 526 |
Bad debt for accounts receivable - other | 5,793 | 40,312 | 15,323 |
Loss on impairment of investment assets | 9,003 | 24,033 | 42,966 |
Other expenses | 46,353 | 30,685 | 4,845 |
Adjustments for income and expenses from operating activities | ₩ 2,096,764 | ₩ 3,039,561 | ₩ 3,250,143 |
Statements of Cash Flows - Chan
Statements of Cash Flows - Changes in Assets and Liabilities from Operating Activities (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to reconcile profit (loss) [abstract] | |||
Accounts receivable - trade | ₩ 46,144 | ₩ 88,549 | ₩ 7,554 |
Accounts receivable - other | (159,960) | (446,286) | (11,108) |
Accrued income | 14 | 445 | 116 |
Advance payments | (1,269) | 47,615 | (35,906) |
Prepaid expenses | (28,362) | (30,311) | (40,464) |
Value-Added Tax refundable | (3,080) | (4,587) | 1,385 |
Inventories | (17,958) | 798 | (7,814) |
Long-term accounts receivable - other | (137,979) | (147,117) | |
Guarantee deposits | 14,696 | 4,844 | (11,238) |
Accounts payable - trade | (26,151) | 75,585 | 12,442 |
Accounts payable - other | 134,542 | 316,464 | (107,114) |
Advanced receipts | (13,470) | 37,429 | 6,421 |
Withholdings | (13,041) | 107,516 | (191,209) |
Deposits received | (4,916) | (2,153) | (9,661) |
Accrued expenses | 116,065 | 173,072 | (28,845) |
Value-Added Tax payable | 7,505 | (4,072) | 3,494 |
Unearned revenue | (339) | (36,209) | (115,187) |
Provisions | (20,488) | 20,235 | (30,562) |
Long-term provisions | (2,449) | 4,115 | (4,447) |
Plan assets | (95,828) | (125,440) | (67,831) |
Retirement benefit payment | (60,883) | (55,350) | (58,513) |
Others | 5,739 | (11,378) | 2,753 |
Changes in assets and liabilities from operating activities | ₩ (261,468) | ₩ 13,764 | ₩ (685,734) |
Statements of Cash Flows - Sign
Statements of Cash Flows - Significant Non-cash Transactions (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Non-cash Investing and Financing Transactions [Abstract] | |||
Increase of accounts payable - other related to acquisition of property and equipment and intangible assets | ₩ 44,214 | ₩ 1,511,913 | ₩ 39,973 |
Statements of Cash Flows - Reco
Statements of Cash Flows - Reconciliation of Liabilities Arising from Financing Activities (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2017KRW (₩) | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | ₩ 9,160,134 |
Cash flows | (65,314) |
Exchange rate changes | (239,151) |
Fair value changes | (968) |
Other changes | 41,641 |
Ending balance | 8,896,342 |
Short-term borrowings [Member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | 2,614 |
Cash flows | 127,386 |
Ending balance | 130,000 |
Long-term borrowings [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | 172,906 |
Cash flows | 87,299 |
Exchange rate changes | (7,898) |
Other changes | 510 |
Ending balance | 252,817 |
Debentures [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | 7,194,207 |
Cash flows | 130,558 |
Exchange rate changes | (245,456) |
Other changes | 6,878 |
Ending balance | 7,086,187 |
Long-term payables - other [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | 1,918,024 |
Cash flows | (305,476) |
Other changes | 28,533 |
Ending balance | 1,641,081 |
Derivative financial liabilities [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | 87,153 |
Cash flows | (105,269) |
Exchange rate changes | 13,281 |
Fair value changes | 39,267 |
Other changes | 5,038 |
Ending balance | 39,470 |
Derivative financial assets [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Beginning balance | (214,770) |
Cash flows | 188 |
Exchange rate changes | 922 |
Fair value changes | (40,235) |
Other changes | 682 |
Ending balance | ₩ (253,213) |
Reconciliation of Liabilities A
Reconciliation of Liabilities Arising from Financing Activities (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
Payments of cash dividends | ₩ (706,091) | ₩ (706,091) | ₩ (668,494) |
Payments of interest on hybrid bond | (16,840) | (16,840) | (16,840) |
Transactions with non-controlling interests | (38,373) | ||
Cash flow from other financing activities | (761,304) | ||
Total | ₩ (826,618) | ₩ (1,044,829) | ₩ (964,583) |
Cash Dividends paid to the P210
Cash Dividends paid to the Parent Company - Summary of Cash Dividends Received from Consolidated Subsidiaries and Associates (Detail) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of dividends [Line Items] | |||
Cash dividends received | ₩ 12,416 | ₩ 19,161 | ₩ 16,102 |
Subsidiaries [member] | |||
Disclosure of dividends [Line Items] | |||
Cash dividends received | 15,693 | ||
Associates [member] | |||
Disclosure of dividends [Line Items] | |||
Cash dividends received | 89,063 | 79,132 | 46,390 |
Parent [member] | |||
Disclosure of dividends [Line Items] | |||
Cash dividends received | ₩ 89,063 | ₩ 94,825 | ₩ 46,390 |