Indicate by
check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
¨
Independent Auditors Report
Based on a report originally issued in Korean
To The
Board of Directors and Shareholders
SK Telecom Co., Ltd.:
We have audited the accompanying consolidated financial statements of SK Telecom Co., Ltd. and its subsidiaries (the Group), which comprise the
consolidated statements of financial position as at December 31, 2015 and 2014, the consolidated statements of income, comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant
accounting policies and other explanatory information.
Managements Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Korean International
Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to
express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial
statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2015 and 2014 and of its consolidated financial performance and its consolidated cash flows for the years then ended in
accordance with Korean International Financial Reporting Standards.
Other Matter
The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and
applied in other countries.
1
KPMG Samjong Accounting Corp.
Seoul, Korea
February 23, 2016
This report is effective as of February 23, 2016, the audit report date. Certain subsequent events or circumstances, which may
occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the
above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
2
SK TELECOM CO., LTD. and Subsidiaries
Consolidated Statements of Financial Position
As of December 31,
2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
34,35
|
|
|
W
|
768,922
|
|
|
|
834,429
|
|
Short-term financial instruments
|
|
|
6,34,35,36,37
|
|
|
|
691,090
|
|
|
|
313,068
|
|
Short-term investment securities
|
|
|
9,34,35
|
|
|
|
92,262
|
|
|
|
280,161
|
|
Accounts receivable - trade, net
|
|
|
7,34,35,36
|
|
|
|
2,344,867
|
|
|
|
2,392,150
|
|
Short-term loans, net
|
|
|
7,34,35,36
|
|
|
|
53,895
|
|
|
|
74,512
|
|
Accounts receivable - other, net
|
|
|
7,34,35,36
|
|
|
|
673,739
|
|
|
|
690,527
|
|
Prepaid expenses
|
|
|
|
|
|
|
151,978
|
|
|
|
134,404
|
|
Inventories, net
|
|
|
8,37
|
|
|
|
273,556
|
|
|
|
267,667
|
|
Assets classified as held for sale
|
|
|
10
|
|
|
|
|
|
|
|
10,510
|
|
Advanced payments and other
|
|
|
7,9,34,35,36
|
|
|
|
109,933
|
|
|
|
85,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
|
|
|
|
|
5,160,242
|
|
|
|
5,083,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financial instruments
|
|
|
6,34,35,37
|
|
|
|
10,623
|
|
|
|
631
|
|
Long-term investment securities
|
|
|
9,34,35
|
|
|
|
1,207,226
|
|
|
|
956,280
|
|
Investments in associates and joint ventures
|
|
|
12
|
|
|
|
6,896,293
|
|
|
|
6,298,088
|
|
Property and equipment, net
|
|
|
13,36,37
|
|
|
|
10,371,256
|
|
|
|
10,567,701
|
|
Investment property, net
|
|
|
14
|
|
|
|
15,071
|
|
|
|
14,997
|
|
Goodwill
|
|
|
15
|
|
|
|
1,908,590
|
|
|
|
1,917,595
|
|
Intangible assets, net
|
|
|
16
|
|
|
|
2,304,784
|
|
|
|
2,483,994
|
|
Long-term loans, net
|
|
|
7,34,35,36
|
|
|
|
62,454
|
|
|
|
55,728
|
|
Long-term accounts receivable - other
|
|
|
7,34,35
|
|
|
|
2,420
|
|
|
|
3,596
|
|
Long-term prepaid expenses
|
|
|
37
|
|
|
|
76,034
|
|
|
|
51,961
|
|
Guarantee deposits
|
|
|
6,7,34,35,36
|
|
|
|
297,281
|
|
|
|
285,144
|
|
Long-term derivative financial assets
|
|
|
22,34,35
|
|
|
|
166,399
|
|
|
|
70,035
|
|
Deferred tax assets
|
|
|
2,31
|
|
|
|
17,257
|
|
|
|
25,083
|
|
Other non-current assets
|
|
|
7,34,35
|
|
|
|
85,457
|
|
|
|
127,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Current Assets
|
|
|
|
|
|
|
23,421,145
|
|
|
|
22,858,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
W
|
28,581,387
|
|
|
|
27,941,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
3
SK TELECOM CO., LTD. and Subsidiaries
Consolidated Statements of Financial Position, Continued
As of
December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
17,34,35
|
|
|
W
|
260,000
|
|
|
|
366,600
|
|
Current installments of long-term debt, net
|
|
|
17,34,35
|
|
|
|
703,087
|
|
|
|
590,714
|
|
Current installments of finance lease liabilities
|
|
|
20,34,35
|
|
|
|
26
|
|
|
|
3,804
|
|
Current installments of long-term payables other
|
|
|
18,34,35
|
|
|
|
120,185
|
|
|
|
189,389
|
|
Accounts payable - trade
|
|
|
34,35,36
|
|
|
|
279,782
|
|
|
|
275,495
|
|
Accounts payable - other
|
|
|
34,35,36
|
|
|
|
1,323,434
|
|
|
|
1,381,850
|
|
Withholdings
|
|
|
34,35,36
|
|
|
|
865,327
|
|
|
|
1,053,063
|
|
Accrued expenses
|
|
|
34,35
|
|
|
|
920,739
|
|
|
|
952,418
|
|
Income tax payable
|
|
|
31
|
|
|
|
381,794
|
|
|
|
99,236
|
|
Unearned revenue
|
|
|
|
|
|
|
224,233
|
|
|
|
327,003
|
|
Provisions
|
|
|
19
|
|
|
|
40,988
|
|
|
|
51,075
|
|
Advanced receipts
|
|
|
|
|
|
|
136,844
|
|
|
|
129,255
|
|
Liabilities classified as held for sale
|
|
|
10
|
|
|
|
|
|
|
|
408
|
|
Other current liabilities
|
|
|
|
|
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
|
|
|
|
5,256,493
|
|
|
|
5,420,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures, excluding current installments, net
|
|
|
17,34,35
|
|
|
|
6,439,147
|
|
|
|
5,649,158
|
|
Long-term borrowings, excluding current installments
|
|
|
17,34,35
|
|
|
|
121,553
|
|
|
|
149,720
|
|
Long-term payables - other
|
|
|
18,34,35
|
|
|
|
581,697
|
|
|
|
684,567
|
|
Long-term unearned revenue
|
|
|
|
|
|
|
2,842
|
|
|
|
19,659
|
|
Finance lease liabilities
|
|
|
20,34,35
|
|
|
|
|
|
|
|
26
|
|
Defined benefit liabilities
|
|
|
21
|
|
|
|
98,856
|
|
|
|
91,587
|
|
Long-term derivative financial liabilities
|
|
|
22,34,35
|
|
|
|
89,296
|
|
|
|
130,889
|
|
Long-term provisions
|
|
|
19
|
|
|
|
29,217
|
|
|
|
36,013
|
|
Deferred tax liabilities
|
|
|
31
|
|
|
|
538,114
|
|
|
|
444,211
|
|
Other non-current liabilities
|
|
|
34,35
|
|
|
|
50,076
|
|
|
|
66,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Current Liabilities
|
|
|
|
|
|
|
7,950,798
|
|
|
|
7,272,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
13,207,291
|
|
|
|
12,692,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,23
|
|
|
|
44,639
|
|
|
|
44,639
|
|
Capital surplus and other capital adjustments
|
|
|
23,24,25
|
|
|
|
189,510
|
|
|
|
277,998
|
|
Retained earnings
|
|
|
26
|
|
|
|
15,007,627
|
|
|
|
14,188,591
|
|
Reserves
|
|
|
27
|
|
|
|
9,303
|
|
|
|
(4,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the Parent Company
|
|
|
|
|
|
|
15,251,079
|
|
|
|
14,506,739
|
|
Non-controlling interests
|
|
|
|
|
|
|
123,017
|
|
|
|
741,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
|
|
|
15,374,096
|
|
|
|
15,248,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
|
|
|
W
|
28,581,387
|
|
|
|
27,941,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
4
SK TELECOM CO., LTD. and Subsidiaries
Consolidated Statements of Income
For the years ended December
31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won except for per share data)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Operating revenue:
|
|
|
5,36
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
W
|
17,136,734
|
|
|
|
17,163,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense:
|
|
|
36
|
|
|
|
|
|
|
|
|
|
Labor cost
|
|
|
21
|
|
|
|
1,893,745
|
|
|
|
1,659,777
|
|
Commissions paid
|
|
|
|
|
|
|
5,206,951
|
|
|
|
5,692,680
|
|
Depreciation and amortization
|
|
|
5
|
|
|
|
2,845,295
|
|
|
|
2,714,730
|
|
Network interconnection
|
|
|
|
|
|
|
957,605
|
|
|
|
997,319
|
|
Leased line
|
|
|
|
|
|
|
389,819
|
|
|
|
399,014
|
|
Advertising
|
|
|
|
|
|
|
405,005
|
|
|
|
415,857
|
|
Rent
|
|
|
|
|
|
|
493,586
|
|
|
|
460,309
|
|
Cost of products that have been resold
|
|
|
|
|
|
|
1,955,861
|
|
|
|
1,680,110
|
|
Other operating expenses
|
|
|
28
|
|
|
|
1,280,861
|
|
|
|
1,318,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,428,728
|
|
|
|
15,338,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
5
|
|
|
|
1,708,006
|
|
|
|
1,825,105
|
|
Finance income
|
|
|
5,30
|
|
|
|
103,900
|
|
|
|
126,337
|
|
Finance costs
|
|
|
5,30
|
|
|
|
(350,100
|
)
|
|
|
(386,673
|
)
|
Gain related to investments in subsidiaries, associates and joint ventures, net
|
|
|
1,5,12
|
|
|
|
786,140
|
|
|
|
906,338
|
|
Other non-operating income
|
|
|
5,29
|
|
|
|
30,910
|
|
|
|
56,279
|
|
Other non-operating expenses
|
|
|
5,29
|
|
|
|
(243,491
|
)
|
|
|
(273,558
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
5
|
|
|
|
2,035,365
|
|
|
|
2,253,828
|
|
|
|
|
|
Income tax expense
|
|
|
31
|
|
|
|
519,480
|
|
|
|
454,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
1,515,885
|
|
|
|
1,799,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent Company
|
|
|
|
|
|
W
|
1,518,604
|
|
|
|
1,801,178
|
|
Non-controlling interests
|
|
|
|
|
|
|
(2,719
|
)
|
|
|
(1,858
|
)
|
|
|
|
|
Earnings per share
|
|
|
32
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in won)
|
|
|
|
|
|
W
|
20,988
|
|
|
|
25,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (in won)
|
|
|
|
|
|
W
|
20,988
|
|
|
|
25,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
5
SK TELECOM CO., LTD. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the years
ended December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,515,885
|
|
|
|
1,799,320
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit liabilities
|
|
|
21
|
|
|
|
(14,489
|
)
|
|
|
(32,942
|
)
|
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
|
|
|
27,30
|
|
|
|
(3,661
|
)
|
|
|
27,267
|
|
Net change in other comprehensive income of investments in associates and joint ventures
|
|
|
12,27
|
|
|
|
(5,709
|
)
|
|
|
8,187
|
|
Net change in unrealized fair value of derivatives
|
|
|
22,27,30
|
|
|
|
(1,271
|
)
|
|
|
(45,942
|
)
|
Foreign currency translation differences for foreign operations
|
|
|
27
|
|
|
|
26,965
|
|
|
|
14,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the year
|
|
|
|
|
|
|
1,835
|
|
|
|
(28,486
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
|
|
|
|
W
|
1,517,720
|
|
|
|
1,770,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent Company
|
|
|
|
|
|
W
|
1,522,280
|
|
|
|
1,777,519
|
|
Non-controlling interests
|
|
|
|
|
|
|
(4,560
|
)
|
|
|
(6,685
|
)
|
See accompanying notes to the consolidated financial statements
.
6
SK TELECOM CO., LTD. and Subsidiaries
Consolidated Statements of Changes in Equity
For the years ended
December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
Controlling Interest
|
|
|
Non-
controlling
interests
|
|
|
Total equity
|
|
|
|
Share capital
|
|
|
Capital surplus
and other capital
adjustments
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Sub-total
|
|
|
|
Balance, January 1, 2014
|
|
W
|
44,639
|
|
|
|
317,508
|
|
|
|
13,102,495
|
|
|
|
(12,270
|
)
|
|
|
13,452,372
|
|
|
|
714,185
|
|
|
|
14,166,557
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
(666,802
|
)
|
|
|
|
|
|
|
(666,802
|
)
|
|
|
(170
|
)
|
|
|
(666,972
|
)
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the year
|
|
|
|
|
|
|
|
|
|
|
1,801,178
|
|
|
|
|
|
|
|
1,801,178
|
|
|
|
(1,858
|
)
|
|
|
1,799,320
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(31,440
|
)
|
|
|
7,781
|
|
|
|
(23,659
|
)
|
|
|
(4,827
|
)
|
|
|
(28,486
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,769,738
|
|
|
|
7,781
|
|
|
|
1,777,519
|
|
|
|
(6,685
|
)
|
|
|
1,770,834
|
|
Interest on hybrid bond
|
|
|
|
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
Changes in consolidation scope
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,667
|
|
|
|
23,667
|
|
Business combination under common control
|
|
|
|
|
|
|
(28,641
|
)
|
|
|
|
|
|
|
|
|
|
|
(28,641
|
)
|
|
|
|
|
|
|
(28,641
|
)
|
Changes in ownership in subsidiaries
|
|
|
|
|
|
|
(10,869
|
)
|
|
|
|
|
|
|
|
|
|
|
(10,869
|
)
|
|
|
10,534
|
|
|
|
(335
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014
|
|
W
|
44,639
|
|
|
|
277,998
|
|
|
|
14,188,591
|
|
|
|
(4,489
|
)
|
|
|
14,506,739
|
|
|
|
741,531
|
|
|
|
15,248,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2015
|
|
W
|
44,639
|
|
|
|
277,998
|
|
|
|
14,188,591
|
|
|
|
(4,489
|
)
|
|
|
14,506,739
|
|
|
|
741,531
|
|
|
|
15,248,270
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
(668,494
|
)
|
|
|
|
|
|
|
(668,494
|
)
|
|
|
(143
|
)
|
|
|
(668,637
|
)
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the year
|
|
|
|
|
|
|
|
|
|
|
1,518,604
|
|
|
|
|
|
|
|
1,518,604
|
|
|
|
(2,719
|
)
|
|
|
1,515,885
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(13,402
|
)
|
|
|
17,078
|
|
|
|
3,676
|
|
|
|
(1,841
|
)
|
|
|
1,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,505,202
|
|
|
|
17,078
|
|
|
|
1,522,280
|
|
|
|
(4,560
|
)
|
|
|
1,517,720
|
|
Interest on hybrid bond
|
|
|
|
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
Acquisition of treasury stock
|
|
|
|
|
|
|
(490,192
|
)
|
|
|
|
|
|
|
|
|
|
|
(490,192
|
)
|
|
|
|
|
|
|
(490,192
|
)
|
Disposal of treasury stock
|
|
|
|
|
|
|
425,744
|
|
|
|
|
|
|
|
|
|
|
|
425,744
|
|
|
|
|
|
|
|
425,744
|
|
Changes in consolidation scope
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,226
|
)
|
|
|
(5,226
|
)
|
Changes in ownership in subsidiaries
|
|
|
|
|
|
|
(24,040
|
)
|
|
|
(832
|
)
|
|
|
(3,286
|
)
|
|
|
(28,158
|
)
|
|
|
(608,585
|
)
|
|
|
(636,743
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2015
|
|
W
|
44,639
|
|
|
|
189,510
|
|
|
|
15,007,627
|
|
|
|
9,303
|
|
|
|
15,251,079
|
|
|
|
123,017
|
|
|
|
15,374,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements
.
7
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,515,885
|
|
|
|
1,799,320
|
|
Adjustments for income and expenses
|
|
|
38
|
|
|
|
3,250,143
|
|
|
|
2,978,995
|
|
Changes in assets and liabilities related to operating activities
|
|
|
38
|
|
|
|
(685,734
|
)
|
|
|
(707,333
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
4,080,294
|
|
|
|
4,070,982
|
|
Interest received
|
|
|
|
|
|
|
43,400
|
|
|
|
56,706
|
|
Dividends received
|
|
|
|
|
|
|
62,973
|
|
|
|
13,048
|
|
Interest paid
|
|
|
|
|
|
|
(275,796
|
)
|
|
|
(280,847
|
)
|
Income tax paid
|
|
|
|
|
|
|
(132,742
|
)
|
|
|
(182,504
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
3,778,129
|
|
|
|
3,677,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in short-term financial instruments, net
|
|
|
|
|
|
|
|
|
|
|
5,627
|
|
Decrease in short-term investment securities, net
|
|
|
|
|
|
|
105,158
|
|
|
|
|
|
Collection of short-term loans
|
|
|
|
|
|
|
398,308
|
|
|
|
207,439
|
|
Decrease in long-term financial instruments
|
|
|
|
|
|
|
7,424
|
|
|
|
2,535
|
|
Proceeds from disposals of long-term investment securities
|
|
|
|
|
|
|
149,310
|
|
|
|
65,287
|
|
Proceeds from disposals of investments in associates and joint ventures
|
|
|
|
|
|
|
185,094
|
|
|
|
7,333
|
|
Proceeds from disposals of property and equipment
|
|
|
|
|
|
|
36,586
|
|
|
|
25,143
|
|
Proceeds from disposals of intangible assets
|
|
|
|
|
|
|
3,769
|
|
|
|
10,917
|
|
Proceeds from disposals of assets held for sale
|
|
|
|
|
|
|
1,009
|
|
|
|
3,667
|
|
Collection of long-term loans
|
|
|
|
|
|
|
2,132
|
|
|
|
4,454
|
|
Decrease in deposits
|
|
|
|
|
|
|
14,635
|
|
|
|
8,891
|
|
Proceeds from disposals of other non-current assets
|
|
|
|
|
|
|
607
|
|
|
|
94
|
|
Proceeds from disposals of subsidiaries
|
|
|
|
|
|
|
155
|
|
|
|
|
|
Increase in cash due to acquisition of a subsidiary
|
|
|
|
|
|
|
10,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
914,542
|
|
|
|
341,387
|
|
Cash outflows for investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in short-term financial instruments, net
|
|
|
|
|
|
|
(385,612
|
)
|
|
|
|
|
Increase in short-term investment securities, net
|
|
|
|
|
|
|
|
|
|
|
(174,209
|
)
|
Increase in short-term loans
|
|
|
|
|
|
|
(370,378
|
)
|
|
|
(202,501
|
)
|
Increase in long-term loans
|
|
|
|
|
|
|
(16,701
|
)
|
|
|
(4,341
|
)
|
Increase in long-term financial instruments
|
|
|
|
|
|
|
(10,008
|
)
|
|
|
(2,522
|
)
|
Acquisitions of long-term investment securities
|
|
|
|
|
|
|
(312,261
|
)
|
|
|
(41,305
|
)
|
Acquisitions of investments in associates and joint ventures
|
|
|
|
|
|
|
(65,080
|
)
|
|
|
(60,020
|
)
|
Acquisitions of property and equipment
|
|
|
|
|
|
|
(2,478,778
|
)
|
|
|
(3,008,026
|
)
|
Acquisitions of intangible assets
|
|
|
|
|
|
|
(127,948
|
)
|
|
|
(130,667
|
)
|
Cash held by disposal group classified as held for sale
|
|
|
|
|
|
|
|
|
|
|
(552
|
)
|
Increase in deposits
|
|
|
|
|
|
|
(12,536
|
)
|
|
|
(6,903
|
)
|
Increase in other non-current assets
|
|
|
|
|
|
|
(2,542
|
)
|
|
|
(18,233
|
)
|
Acquisitions of business, net of cash acquired
|
|
|
|
|
|
|
(13,197
|
)
|
|
|
(375,273
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
(3,795,041
|
)
|
|
|
(4,024,552
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
W
|
(2,880,499
|
)
|
|
|
(3,683,165
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Increase in short-term borrowings, net
|
|
|
|
W
|
|
|
|
|
102,868
|
|
Proceeds from issuance of debentures
|
|
|
|
|
1,375,031
|
|
|
|
1,255,468
|
|
Proceeds from long-term borrowings
|
|
|
|
|
|
|
|
|
62,552
|
|
Cash inflows from settlement of derivatives
|
|
|
|
|
175
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
1,375,206
|
|
|
|
1,421,088
|
|
Cash outflows for financing activities:
|
|
|
|
|
|
|
|
|
|
|
Decrease in short-term borrowings, net
|
|
|
|
|
(106,600
|
)
|
|
|
|
|
Repayments of long-term account payables-other
|
|
|
|
|
(191,436
|
)
|
|
|
(207,791
|
)
|
Repayments of debentures
|
|
|
|
|
(620,000
|
)
|
|
|
(1,039,938
|
)
|
Repayments of long-term borrowings
|
|
|
|
|
(21,924
|
)
|
|
|
(23,284
|
)
|
Cash outflows from settlement of derivatives
|
|
|
|
|
(655
|
)
|
|
|
(6,444
|
)
|
Payments of finance lease liabilities
|
|
|
|
|
(3,206
|
)
|
|
|
(19,388
|
)
|
Payments of dividends
|
|
|
|
|
(668,494
|
)
|
|
|
(666,802
|
)
|
Payments of interest on hybrid bond
|
|
|
|
|
(16,840
|
)
|
|
|
(16,840
|
)
|
Acquisitions of treasury stock
|
|
|
|
|
(490,192
|
)
|
|
|
|
|
Cash outflows related to equity interest transactions
|
|
|
|
|
(220,442
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
(2,339,789
|
)
|
|
|
(1,980,487
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
(964,583
|
)
|
|
|
(559,399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
|
(66,953
|
)
|
|
|
(565,179
|
)
|
Cash and cash equivalents at beginning of the year
|
|
|
|
|
834,429
|
|
|
|
1,398,639
|
|
Effects of exchange rate changes on cash and cash equivalents
|
|
|
|
|
1,446
|
|
|
|
969
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the year
|
|
|
|
W
|
768,922
|
|
|
|
834,429
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements
.
9
SK Telecom Co., Ltd. (the Parent Company) was incorporated in March 1984
under the laws of the Republic of Korea (Korea) to engage in providing cellular telephone communication services in Korea. The Parent Company mainly provides wireless telecommunications in Korea. The Parent Companys 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, 2015, the Parent Companys total issued shares are held by the following:
|
|
|
|
|
|
|
|
|
|
|
Number of
shares
|
|
|
Percentage of
total shares issued (%)
|
|
SK Holdings Co., Ltd.(*)
|
|
|
20,363,452
|
|
|
|
25.22
|
|
National Pension Service
|
|
|
6,963,591
|
|
|
|
8.63
|
|
Institutional investors and other minority stockholders
|
|
|
43,282,117
|
|
|
|
53.60
|
|
Treasury stock
|
|
|
10,136,551
|
|
|
|
12.55
|
|
|
|
|
|
|
|
|
|
|
Total number of shares
|
|
|
80,745,711
|
|
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
(*)
|
During the year ended December 31, 2015, SK C&C Co., Ltd., the ultimate controlling entitys investee accounted using the equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the
Parent Company, and changed its name to SK, Holdings Co., Ltd.
|
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.
The list of subsidiaries as of December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)
|
|
Subsidiary
|
|
Location
|
|
Primary business
|
|
Dec. 31,
2015
|
|
|
Dec. 31,
2014
|
|
SK Telink Co., Ltd.
|
|
Korea
|
|
Telecommunication and MVNO service
|
|
|
83.5
|
|
|
|
83.5
|
|
M&Service Co., Ltd.
|
|
Korea
|
|
Data base and internet website service
|
|
|
100.0
|
|
|
|
100.0
|
|
SK Communications Co., Ltd.
|
|
Korea
|
|
Internet website services
|
|
|
64.6
|
|
|
|
64.6
|
|
Stonebridge Cinema Fund
|
|
Korea
|
|
Investment association
|
|
|
55.2
|
|
|
|
56.0
|
|
Commerce Planet Co., Ltd.
|
|
Korea
|
|
Online shopping mall operation agency
|
|
|
100.0
|
|
|
|
100.0
|
|
SK Broadband Co., Ltd.(*1,4)
|
|
Korea
|
|
Telecommunication services
|
|
|
100.0
|
|
|
|
50.6
|
|
K-net Culture and Contents Venture Fund
|
|
Korea
|
|
Investment association
|
|
|
59.0
|
|
|
|
59.0
|
|
Fitech Focus Limited Partnership II
|
|
Korea
|
|
Investment association
|
|
|
66.7
|
|
|
|
66.7
|
|
Open Innovation Fund
|
|
Korea
|
|
Investment association
|
|
|
98.9
|
|
|
|
98.9
|
|
PS&Marketing Corporation
|
|
Korea
|
|
Communications device retail business
|
|
|
100.0
|
|
|
|
100.0
|
|
Service Ace 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
|
|
BNCP Co., Ltd.(*5)
|
|
Korea
|
|
Internet website services
|
|
|
|
|
|
|
100.0
|
|
Iconcube Holdings, Inc. (*5)
|
|
Korea
|
|
Investment association
|
|
|
|
|
|
|
100.0
|
|
Iconecube, Inc. (*5)
|
|
Korea
|
|
Internet website services
|
|
|
|
|
|
|
100.0
|
|
SK Planet Co., Ltd.
|
|
Korea
|
|
Telecommunication service
|
|
|
100.0
|
|
|
|
100.0
|
|
Neosnetworks Co., Ltd.(*2)
|
|
Korea
|
|
Guarding of facilities
|
|
|
83.9
|
|
|
|
66.7
|
|
10
1.
|
Reporting Entity, Continued
|
|
(2)
|
List of subsidiaries, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)
|
|
Subsidiary
|
|
Location
|
|
Primary business
|
|
Dec. 31,
2015
|
|
|
Dec. 31,
2014
|
|
IRIVER LIMITED (*3)
|
|
Korea
|
|
Manufacturing digital audio players and other portable media devices.
|
|
|
49.0
|
|
|
|
49.0
|
|
Iriver CS Co., Ltd. (*5)
|
|
Korea
|
|
After-sales service and logistics agency
|
|
|
|
|
|
|
100.0
|
|
iriver Enterprise Ltd.
|
|
Hong Kong
|
|
Management of Chinese subsidiary
|
|
|
100.0
|
|
|
|
100.0
|
|
iriver America Inc.
|
|
USA
|
|
Marketing and sales in North America
|
|
|
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 in China
|
|
|
100.0
|
|
|
|
100.0
|
|
Groovers JP Ltd.(*5)
|
|
Japan
|
|
Digital music contents sourcing and distribution service
|
|
|
100.0
|
|
|
|
|
|
SK Telecom China Holdings Co., Ltd.
|
|
China
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
Shenzhen E-eye High Tech Co., Ltd.(*5)
|
|
China
|
|
Manufacturing
|
|
|
|
|
|
|
65.5
|
|
SK Global Healthcare Business Group, Ltd.
|
|
Hong Kong
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
SK Planet Japan, K. K.
|
|
Japan
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
SKT Vietnam PTE. Ltd.
|
|
Singapore
|
|
Telecommunication service
|
|
|
73.3
|
|
|
|
73.3
|
|
SK Planet Global PTE. Ltd.
|
|
Singapore
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
SKP GLOBAL HOLDINGS PTE. LTD.
|
|
Singapore
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
SKT Americas, Inc.
|
|
USA
|
|
Information gathering and consulting
|
|
|
100.0
|
|
|
|
100.0
|
|
SKP America LLC.
|
|
USA
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
YTK Investment Ltd.
|
|
Cayman
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
Atlas Investment
|
|
Cayman
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
Technology Innovation Partners, LP.
|
|
USA
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
SK Telecom China Fund I L.P.
|
|
Cayman
|
|
Investment association
|
|
|
100.0
|
|
|
|
100.0
|
|
Entrix Co., Ltd.(*5)
|
|
Korea
|
|
Cloud streaming services
|
|
|
100.0
|
|
|
|
|
|
shopkick Management Company, Inc.
|
|
USA
|
|
Investment association
|
|
|
95.2
|
|
|
|
95.2
|
|
shopkick, Inc.
|
|
USA
|
|
Mileage-based online transaction app development
|
|
|
100.0
|
|
|
|
100.0
|
|
(*1)
|
On March 20, 2015, the Board of Directors of the Parent Company decided to grant 0.0168936 share of its treasury stock in exchange for 1 share of SK Broadband Co., Ltd., a subsidiary of the Parent Company, to the
shareholders of SK Broadband Co., Ltd. as of June 9, 2015. After the stock exchange, SK Broadband Co., Ltd. became a wholly-owned subsidiary of the Parent Company.
|
(*2)
|
Due to the shareholders agreement which grants put option to the non-controlling shareholders, this entity is consolidated as a wholly owned subsidiary in the consolidated financial statements. The Parent Company
newly acquired 50,377 and 326,748 shares of Neosnetworks Co., Ltd. by participating in the capital increase and capital increase without consideration, respectively during the year ended December 31, 2015.
|
(*3)
|
Although the Group has less than 50% of the voting rights of IRIVER LIMITED, it is considered to have de facto control 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.
|
11
1.
|
Reporting Entity, Continued
|
|
(2)
|
List of subsidiaries, Continued
|
(*4)
|
On November 2, 2015, the board of directors of the Parent Company entered into a share purchase agreement to acquire 30%(23,234,060 shares) of the issued and outstanding common shares of CJ Hello Vision Co, Ltd.
(CJ Hello Vision) from CJ O Shopping Co., Ltd. (CJ O Shopping). The proposed transaction closing date is April 4, 2016. According to the share purchase agreement, the Parent Company will grant put option (exercisable at a
price of
W
26,994 during the two year period following the third anniversary of the transaction closing date) to CJ O Shopping and be granted call option (exercisable at a price of
W
26,994 during the five year period following the closing date) on CJ O Shoppings remaining shares in CJ Hello Vision. On November 2, 2015, the board of directors of SK Broadband Co., Ltd. (SK
Broadband), a subsidiary of the Parent Company, held a meeting to resolve the merger of SK Broadband into CJ Hello Vision, and SK Broadband entered into a merger agreement with CJ Hello Vision. Under the agreement, SK Broadband will be merged
into CJ Hello Vision on April 4, 2016. As of December 31, 2015, the approval of relevant government agencies for the share purchase and the merger has not been completed, and the transaction closing date is subject to change depending on the status
of the pre-requirements including the approval of government agencies.
|
(*5)
|
Changes in subsidiaries are explained in Note 1-(4).
|
In accordance with the Groups
accounting policy relating to the scope of consolidation, small-sized subsidiaries including IM Shopping Inc. were excluded from the list of subsidiaries as the effects on the Groups consolidated financial statements are not material
considering both individual and overall quantitative and qualitative effects.
12
1.
|
Reporting Entity, Continued
|
|
(3)
|
Condensed financial information of subsidiaries
|
Condensed financial information of
subsidiaries as of and for the year ended December 31, 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Subsidiary
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total equity
(deficit)
|
|
|
Revenue
|
|
|
Profit (loss)
|
|
SK Telink Co., Ltd.
|
|
W
|
309,955
|
|
|
|
113,878
|
|
|
|
196,077
|
|
|
|
431,368
|
|
|
|
55,781
|
|
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
|
)
|
Stonebridge Cinema Fund
|
|
|
7,797
|
|
|
|
523
|
|
|
|
7,274
|
|
|
|
|
|
|
|
3,290
|
|
Commerce Planet Co., Ltd.
|
|
|
26,291
|
|
|
|
33,660
|
|
|
|
(7,369
|
)
|
|
|
78,647
|
|
|
|
(3,003
|
)
|
SK Broadband Co., Ltd.
|
|
|
3,291,707
|
|
|
|
2,170,484
|
|
|
|
1,121,223
|
|
|
|
2,731,344
|
|
|
|
10,832
|
|
K-net Culture and Contents Venture Fund
|
|
|
13,169
|
|
|
|
|
|
|
|
13,169
|
|
|
|
|
|
|
|
(421
|
)
|
Fitech Focus Limited Partnership II
|
|
|
18,249
|
|
|
|
|
|
|
|
18,249
|
|
|
|
|
|
|
|
(1,085
|
)
|
Open Innovation Fund
|
|
|
19,455
|
|
|
|
|
|
|
|
19,455
|
|
|
|
|
|
|
|
(2,348
|
)
|
PS&Marketing Corporation
|
|
|
509,580
|
|
|
|
300,364
|
|
|
|
209,216
|
|
|
|
1,791,944
|
|
|
|
4,835
|
|
Service Ace 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
|
)
|
Neosnetworks Co., Ltd.
|
|
|
68,361
|
|
|
|
15,583
|
|
|
|
52,778
|
|
|
|
61,092
|
|
|
|
(5,615
|
)
|
IRIVER LIMITED(*1)
|
|
|
60,434
|
|
|
|
12,377
|
|
|
|
48,057
|
|
|
|
55,637
|
|
|
|
635
|
|
SK Telecom China Holdings Co., Ltd.
|
|
|
37,748
|
|
|
|
2,111
|
|
|
|
35,637
|
|
|
|
10,764
|
|
|
|
(10,124
|
)
|
SK Global Healthcare Business Group, Ltd.
|
|
|
25,768
|
|
|
|
|
|
|
|
25,768
|
|
|
|
|
|
|
|
(106
|
)
|
SK Planet Japan, K. K.
|
|
|
5,068
|
|
|
|
1,021
|
|
|
|
4,047
|
|
|
|
699
|
|
|
|
(4,988
|
)
|
SKT Vietnam PTE. Ltd.
|
|
|
4,523
|
|
|
|
1,371
|
|
|
|
3,152
|
|
|
|
|
|
|
|
|
|
SK Planet Global PTE. Ltd.
|
|
|
1,570
|
|
|
|
218
|
|
|
|
1,352
|
|
|
|
1
|
|
|
|
(4,069
|
)
|
SKP GLOBAL HOLDINGS PTE. LTD.
|
|
|
28,320
|
|
|
|
16
|
|
|
|
28,304
|
|
|
|
|
|
|
|
(23,918
|
)
|
SKT Americas, Inc.
|
|
|
51,138
|
|
|
|
837
|
|
|
|
50,301
|
|
|
|
9,132
|
|
|
|
(3,204
|
)
|
SKP America LLC.
|
|
|
380,141
|
|
|
|
|
|
|
|
380,141
|
|
|
|
|
|
|
|
791
|
|
YTK Investment Ltd.
|
|
|
16,318
|
|
|
|
|
|
|
|
16,318
|
|
|
|
|
|
|
|
(3,210
|
)
|
Atlas Investment(*2)
|
|
|
77,750
|
|
|
|
199
|
|
|
|
77,551
|
|
|
|
|
|
|
|
(2,429
|
)
|
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
|
)
|
(*1)
|
The condensed financial information of IRIVER LIMITED includes financial information of iriver Enterprise Ltd., iriver America Inc., iriver Inc., iriver China Co., Ltd., Dongguan iriver Electronics Co., Ltd. and
Groovers JP Ltd., subsidiaries of IRIVER LIMITED.
|
(*2)
|
The financial information of Atlas Investment includes financial information of Technology Innovation Partners, L.P. and SK Telecom China Fund I L.P., subsidiaries of Atlas Investment.
|
13
1.
|
Reporting Entity, Continued
|
|
(3)
|
Condensed financial information of subsidiaries, Continued
|
Condensed financial information of subsidiaries as of and for the year ended December 31,
2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Subsidiary
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total equity
(deficit)
|
|
|
Revenue
|
|
|
Profit (loss)
|
|
SK Telink Co., Ltd.
|
|
W
|
324,028
|
|
|
|
184,074
|
|
|
|
139,954
|
|
|
|
465,463
|
|
|
|
13,073
|
|
M&Service Co., Ltd.
|
|
|
78,826
|
|
|
|
36,817
|
|
|
|
42,009
|
|
|
|
133,789
|
|
|
|
7,492
|
|
SK Communications Co., Ltd.
|
|
|
176,168
|
|
|
|
41,987
|
|
|
|
134,181
|
|
|
|
93,910
|
|
|
|
(18,386
|
)
|
Stonebridge Cinema Fund
|
|
|
11,137
|
|
|
|
320
|
|
|
|
10,817
|
|
|
|
|
|
|
|
383
|
|
Commerce Planet Co., Ltd.
|
|
|
26,078
|
|
|
|
27,259
|
|
|
|
(1,181
|
)
|
|
|
64,509
|
|
|
|
933
|
|
SK Broadband Co., Ltd.
|
|
|
3,109,991
|
|
|
|
1,988,379
|
|
|
|
1,121,612
|
|
|
|
2,654,381
|
|
|
|
4,307
|
|
K-net Culture and Contents Venture Fund
|
|
|
21,094
|
|
|
|
4
|
|
|
|
21,090
|
|
|
|
|
|
|
|
4,920
|
|
Fitech Focus Limited Partnership II
|
|
|
19,301
|
|
|
|
|
|
|
|
19,301
|
|
|
|
|
|
|
|
(2,055
|
)
|
Open Innovation Fund
|
|
|
21,765
|
|
|
|
|
|
|
|
21,765
|
|
|
|
|
|
|
|
(6,266
|
)
|
PS&Marketing Corporation
|
|
|
544,292
|
|
|
|
336,221
|
|
|
|
208,071
|
|
|
|
1,627,217
|
|
|
|
2,817
|
|
Service Ace Co., Ltd.
|
|
|
66,336
|
|
|
|
37,770
|
|
|
|
28,566
|
|
|
|
207,427
|
|
|
|
3,570
|
|
Service Top Co., Ltd.
|
|
|
57,032
|
|
|
|
36,723
|
|
|
|
20,309
|
|
|
|
188,835
|
|
|
|
3,503
|
|
Network O&S Co., Ltd.
|
|
|
71,348
|
|
|
|
45,770
|
|
|
|
25,578
|
|
|
|
211,916
|
|
|
|
3,823
|
|
BNCP Co., Ltd.
|
|
|
6,785
|
|
|
|
5,887
|
|
|
|
898
|
|
|
|
12,869
|
|
|
|
(1,505
|
)
|
Iconcube Holdings, Inc.(*1)
|
|
|
1,415
|
|
|
|
515
|
|
|
|
900
|
|
|
|
630
|
|
|
|
(2,284
|
)
|
SK Planet Co., Ltd.
|
|
|
2,579,286
|
|
|
|
746,832
|
|
|
|
1,832,454
|
|
|
|
1,512,492
|
|
|
|
1,593
|
|
Neosnetworks Co., Ltd.
|
|
|
31,633
|
|
|
|
13,251
|
|
|
|
18,382
|
|
|
|
33,302
|
|
|
|
(1,989
|
)
|
IRIVER LIMITED(*2)
|
|
|
61,945
|
|
|
|
14,392
|
|
|
|
47,553
|
|
|
|
53,192
|
|
|
|
2,345
|
|
SK Telecom China Holdings Co., Ltd.
|
|
|
37,877
|
|
|
|
2,335
|
|
|
|
35,542
|
|
|
|
12,420
|
|
|
|
1,058
|
|
Shenzhen E-eye High Tech Co., Ltd.
|
|
|
15,566
|
|
|
|
408
|
|
|
|
15,158
|
|
|
|
3,637
|
|
|
|
(1,143
|
)
|
SK Global Healthcare Business Group, Ltd.
|
|
|
25,874
|
|
|
|
|
|
|
|
25,874
|
|
|
|
|
|
|
|
(689
|
)
|
SK Planet Japan, K. K.
|
|
|
5,222
|
|
|
|
1,638
|
|
|
|
3,584
|
|
|
|
93
|
|
|
|
(4,561
|
)
|
SKT Vietnam PTE. Ltd.
|
|
|
4,242
|
|
|
|
1,286
|
|
|
|
2,956
|
|
|
|
|
|
|
|
(73
|
)
|
SK Planet Global PTE. Ltd.
|
|
|
4,215
|
|
|
|
64
|
|
|
|
4,151
|
|
|
|
87
|
|
|
|
(2,543
|
)
|
SKP GLOBAL HOLDINGS PTE. LTD.
|
|
|
29,529
|
|
|
|
11
|
|
|
|
29,518
|
|
|
|
|
|
|
|
(9,716
|
)
|
SKT Americas, Inc.
|
|
|
42,159
|
|
|
|
554
|
|
|
|
41,605
|
|
|
|
9,100
|
|
|
|
(5
|
)
|
SKP America LLC.
|
|
|
297,981
|
|
|
|
67
|
|
|
|
297,914
|
|
|
|
|
|
|
|
(2,370
|
)
|
YTK Investment Ltd.
|
|
|
27,944
|
|
|
|
|
|
|
|
27,944
|
|
|
|
|
|
|
|
(15,259
|
)
|
Atlas Investment(*3)
|
|
|
66,825
|
|
|
|
94
|
|
|
|
66,731
|
|
|
|
|
|
|
|
(6,626
|
)
|
shopkick Management Company, Inc.
|
|
|
230,925
|
|
|
|
|
|
|
|
230,925
|
|
|
|
|
|
|
|
|
|
shopkick, Inc.
|
|
|
28,216
|
|
|
|
13,698
|
|
|
|
14,518
|
|
|
|
|
|
|
|
|
|
(*1)
|
The condensed financial information of Iconcube Holdings, Inc. includes financial information of Iconcube, Inc., a subsidiary of Iconcube Holdings, Inc.
|
(*2)
|
The condensed financial information of IRIVER LIMITED includes financial information of iriver CS Co. Ltd., iriver Enterprise Ltd., iriver America Inc., iriver Inc., iriver China Co., Ltd., and Dongguan iriver
Electronics Co., Ltd., subsidiaries of IRIVER LIMITED.
|
14
1.
|
Reporting Entity, Continued
|
|
(3)
|
Condensed financial information of subsidiaries, Continued
|
(*3)
|
The financial information of Atlas Investment includes financial information of Technology Innovation Partners, L.P. and SK Telecom China Fund I L.P., subsidiaries of Atlas Investment.
|
|
(4)
|
Changes in subsidiaries
|
The list of subsidiaries that were newly included from consolidation
during the year ended December 31, 2015 is as follows:
|
|
|
Subsidiary
|
|
Reason
|
Groovers JP Ltd.
|
|
Established by IRIVER LIMITED, a subsidiary of the Parent Company during the year ended December 31, 2015.
|
Entrix Co., Ltd
|
|
Established by spin-off from SK Planet Co., Ltd., a subsidiary of the Parent Company.
|
The list of subsidiaries that were excluded from subsidiaries during the year ended December 31, 2015 is
as follows:
|
|
|
Subsidiary
|
|
Reason
|
BNCP Co., Ltd.
|
|
Disposed during the year ended December 31, 2015.
|
Iconcube Holdings, Inc.
|
|
Disposed during the year ended December 31, 2015.
|
Iconcube, Inc.
|
|
Disposed during the year ended December 31, 2015.
|
Iriver CS Co., Ltd.
|
|
Merged into IRIVER LIMITED, a subsidiary of the Parent Company during the year ended December 31, 2015.
|
Shenzhen E-eye High Tech Co., Ltd.
|
|
Disposed during the year ended December 31, 2015.
|
15
1.
|
Reporting Entity, Continued
|
|
(5)
|
The information of significant non-controlling interests of the Group as of and for the years ended December 31, 2015 and 2014 are as follows. There were no dividends paid during the years ended December 31, 2015 and
2014 by subsidiaries of which non-controlling interests are significant.
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
SK Communications Co., Ltd.
|
|
Ownership of non-controlling interests (%)
|
|
|
35.4
|
|
|
|
Current assets
|
|
W
|
95,662
|
|
Non-current assets
|
|
|
56,834
|
|
Current liabilities
|
|
|
(33,306
|
)
|
Non-current liabilities
|
|
|
(1,708
|
)
|
Net assets
|
|
|
117,482
|
|
Net assets of consolidated entities
|
|
|
117,482
|
|
Carrying amount of non-controlling interests
|
|
|
41,659
|
|
|
|
Revenue
|
|
W
|
80,147
|
|
Loss for the period
|
|
|
(14,826
|
)
|
Loss of the consolidated entities
|
|
|
(14,826
|
)
|
Total comprehensive loss
|
|
|
(16,698
|
)
|
Loss attributable to non-controlling interests
|
|
|
(5,254
|
)
|
|
|
Net cash used in operating activities
|
|
W
|
(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
|
|
16
1.
|
Reporting Entity, Continued
|
|
(5)
|
The information of significant non-controlling interests of the Group as of and for the years ended December 31, 2015 and 2014 are as follows. There were no dividends paid during the years ended December 31,
2015 and 2014 by subsidiaries of which non-controlling interests are significant, Continued
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
SK Communications
Co., Ltd.
|
|
|
SK Broadband
Co., Ltd.
|
|
Ownership of non-controlling interests (%)
|
|
|
35.4
|
|
|
|
49.4
|
|
|
|
|
Current assets
|
|
W
|
89,135
|
|
|
|
463,764
|
|
Non-current assets
|
|
|
87,033
|
|
|
|
2,646,227
|
|
Current liabilities
|
|
|
(41,252
|
)
|
|
|
(881,886
|
)
|
Non-current liabilities
|
|
|
(735
|
)
|
|
|
(1,106,493
|
)
|
Net
assets
|
|
|
134,181
|
|
|
|
1,121,612
|
|
Adjustment for fair value
|
|
|
|
|
|
|
111,561
|
|
Net
assets of consolidated entities
|
|
|
134,181
|
|
|
|
1,233,173
|
|
Carrying amount of non-controlling interests
|
|
|
47,577
|
|
|
|
609,638
|
|
|
|
|
Revenue
|
|
W
|
93,910
|
|
|
|
2,654,381
|
|
Profit (loss) for the period
|
|
|
(18,386
|
)
|
|
|
4,307
|
|
Amortization of fair value adjustment
|
|
|
|
|
|
|
(1,916
|
)
|
Profit (loss) of the consolidated entities
|
|
|
(18,386
|
)
|
|
|
2,391
|
|
Total comprehensive income (loss)
|
|
|
530
|
|
|
|
(10,324
|
)
|
Profit (loss) attributable to non-controlling interests
|
|
|
(6,519
|
)
|
|
|
1,182
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
W
|
(5,962
|
)
|
|
|
431,760
|
|
Net cash used in investing activities
|
|
|
(17,927
|
)
|
|
|
(599,016
|
)
|
Net cash provided by financing activities
|
|
|
|
|
|
|
119,484
|
|
Net decrease in cash and cash equivalents
|
|
|
(23,889
|
)
|
|
|
(47,772
|
)
|
17
|
(1)
|
Statement of compliance
|
These consolidated financial statements were prepared in accordance
with Korean International Financial Reporting Standards (K-IFRS), as prescribed in the
Act on External Audits of Stock Companies in the Republic of Korea
.
The consolidated financial statements were authorized for issuance by the Board of Directors on February 3, 2016, which will be submitted for
approval at the shareholders meeting to be held on March 18, 2016.
The consolidated financial statements have been prepared on the
historical cost basis, except for the following material items in the consolidated statements of financial position:
|
|
|
derivative financial instruments are measured at fair value
|
|
|
|
financial instruments at fair value through profit or loss are measured at fair value
|
|
|
|
available-for-sale financial assets are measured at fair value
|
|
|
|
liabilities for defined benefit plans are 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 presented in functional currency and 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 Companys functional and
presentation currency.
|
(4)
|
Use of estimates and judgments
|
The preparation of the consolidated financial statements in
conformity with K-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.
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: revenue, consolidation: whether the Group has de facto control over an investee, and classification of
lease.
18
2.
|
Basis of Presentation, Continued
|
|
(4)
|
Use of estimates and judgments, Continued
|
|
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 Groups accounting policies and disclosures
require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall
responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the finance executive.
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 K-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).
|
|
|
|
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.
|
(5)
|
Common control transactions
|
SK Holdings Co., Ltd. (the Ultimate Controlling
Entity) is the Ultimate Controlling Entity of the Parent Company because it controls the Parent Company. Accordingly, gains and losses from business acquisitions and dispositions involving entities that are under the control of the Ultimate
Controlling Entity are accounted for as common control transactions within equity.
19
3.
|
Changes in Accounting Policies
|
Except for the changes below, the Group has consistently
applied the accounting policies set out in Note 4 to all periods presented in these consolidated financial statements.
The Group has
adopted the following amendments to standards with a date of initial application of January 1, 2015.
1) K-IFRS 1019 Employee
Benefits Employee contributions
Amendments to K-IFRS 1019 introduced a practical expedient to accounting for defined benefit
plan, when employees or third parties pay contributions if certain criteria are met. According to the amendments, the entity is permitted to recognize those contributions as a reduction of the service cost in the period in which the related service
is rendered, instead of forecast future contributions from employees or third parties and attribute them to periods or service as negative benefits.
There is no material impact of the application of this amendment on the consolidated financial statements.
4.
|
Significant Accounting Policies
|
The significant accounting policies applied by the
Group in preparation of its consolidated financial statements in accordance with K-IFRSs are included below. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements
except for those as described in Note 3.
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 Groups other components. The Groups 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 three
reportable segments which consist of cellular services, fixed-line telecommunication services and others, as described in Note 5. Segment results that are reported to the chief operating decision maker include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
20
4.
|
Significant Accounting Policies, Continued
|
|
(2)
|
Basis of consolidation
|
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. If goodwill incurs as a result of business combination, the Group performs impairment test on an annual basis and recognizes gain from bargain purchases
through profit or loss. 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 K-IFRS No. 1032 and 1039.
Consideration transferred does not include the amount settled in relation to the pre-existing relationship and the amount settled in relation
to the pre-existing relationship is generally recognized through profit or loss.
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 and recognizes through profit or loss.
Entire or certain portion of market-based measure of
replacement award for share-based payment transactions of the acquiree or the replacement of an acquirees share-based payment transactions with share-based payment transactions of the acquirer is included in measurement of contingent
considerations. Portion of a replacement award that is part of the consideration transferred for the acquiree and the portion that is remuneration for post-combination service is determined by comparing market-based measure of the awards of acquire
and replacement awards that is attributable to pre-combination service.
|
(ii)
|
Non-controlling interests
|
The Group measure at the acquisition date components of
non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the acquirees net assets.
Changes in a Controlling Companys ownership interest in a subsidiary that do not result in the Controlling Company losing control of the
subsidiary are accounted for as equity transactions.
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.
21
4.
|
Significant Accounting Policies, Continued
|
|
(2)
|
Basis of consolidation, Continued
|
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 entitys financial and operating policies. A joint venture is a
joint arrangement whereby the Group that has joint control of the arrangement have 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 Groups 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 Groups 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
|
The assets and liabilities acquired from the
combination of entities or business under common control are recognized at the carrying amounts in the ultimate controlling shareholders consolidated financial statements. The difference between consideration and carrying amount of net assets
acquired is added to or subtracted from other capital adjustments.
|
(3)
|
Cash and cash equivalents
|
Cash and cash equivalents comprise cash balances and call deposits
with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments.
Inventories are stated at the acquisition cost using the average method. During
the period, a perpetual inventory system is used to value inventories, 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. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses.
22
4.
|
Significant Accounting Policies, Continued
|
|
(5)
|
Non-derivative financial assets
|
The Group recognizes and measures non-derivative financial
assets by the following four categories: financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets. The Group recognizes financial assets in the consolidated
statement of financial position when the Group becomes a party to the contractual provisions of the instrument.
Upon initial recognition,
non-derivative financial assets are measured at their fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the assets acquisition or issuance.
|
(i)
|
Financial assets at fair value through profit or loss
|
A financial asset is classified as
financial assets are classified 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 investments
|
A non-derivative financial asset with a fixed or determinable
payment and fixed maturity, for which the Group has the positive intention and ability to hold to maturity, are classified as held-to-maturity investments. Subsequent to initial recognition, held-to-maturity investments are measured at amortized
cost using the effective interest rate method.
|
(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 financial assets
|
Available-for-sale financial assets are those
non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held-to-maturity investments or loans and receivables. Subsequent to initial recognition, they
are measured at fair value, which changes in fair value, net of any tax effect, recorded in other comprehensive income in equity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured are measured at cost.
|
(v)
|
De-recognition of financial assets
|
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.
23
4.
|
Significant Accounting Policies, Continued
|
|
(5)
|
Non-derivative financial assets, Continued
|
|
(vi)
|
Offsetting between financial assets and financial liabilities
|
Financial assets and financial
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.
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 designated 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.
24
4.
|
Significant Accounting Policies, Continued
|
|
(6)
|
Derivative financial instruments, including hedge accounting, Continued
|
|
(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 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 borrowers 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.
25
4.
|
Significant Accounting Policies, Continued
|
|
(7)
|
Impairment of financial assets, Continued
|
If financial assets have objective evidence that they are impaired, impairment losses should
be 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 assets original effective interest rate. If it is not practicable to obtain the
instruments estimated future cash flows, impairment losses would be measured by using prices from any observable current market transactions. The Group can recognize impairment losses directly or establish a provision to cover impairment
losses. 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 debtors credit rating), the
previously recognized impairment loss shall be 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 shall not be reversed.
|
(iii)
|
Available-for-sale financial assets
|
When a decline in the fair value of an available-for-sale
financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment even though the financial asset has not been derecognized. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale shall not be reversed through
profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss shall be reversed, with the amount of the reversal recognized in profit or loss.
|
(8)
|
Property, plant and equipment
|
Property, plant and equipment are initially measured at cost and
after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant 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.
26
4.
|
Significant Accounting Policies, Continued
|
|
(8)
|
Property, plant and equipment, continued
|
Subsequent to initial recognition, an item of property, plant 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, plant and equipment at cost or, if appropriate, as separate items 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 servicing are recognized in profit or loss as incurred.
Property, plant and
equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the assets future economic benefits are expected to be consumed. A component that is significant
compared to the total cost of property, plant and equipment is depreciated over its separate useful life.
Gains and losses on disposal of
an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized as other non-operating income (loss).
The estimated useful lives of the Groups property, plant and equipment are as follows:
|
|
|
|
|
Useful lives (years)
|
|
|
Buildings and structures
|
|
15 ~ 40
|
Machinery
|
|
3 ~ 15
|
Other property, plant and equipment (Other PP&E)
|
|
4 ~ 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.
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 and inventories that are manufactured or otherwise produced over a short period of time 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 shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset. The capitalization rate
shall be 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 shall not exceed the amount of borrowing costs incurred during that period.
27
4.
|
Significant Accounting Policies, Continued
|
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, as there are no foreseeable limits to the periods over
which club memberships are expected to be available for use, this intangible asset is determined as having indefinite useful lives and not amortized.
The estimated useful lives of the Groups intangible assets are as follows:
|
|
|
|
|
Useful lives (years)
|
|
|
Frequency use rights
|
|
6.3 ~ 13.1
|
Land use rights
|
|
5
|
Industrial rights
|
|
5, 10
|
Development costs
|
|
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,
undertaken with the prospect of gaining new scientific or technical knowledge and understanding, 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.
28
4.
|
Significant Accounting Policies, Continued
|
Government grants are not recognized unless there is reasonable assurance
that the Group will comply with the grants conditions and that the grant will be received.
|
(i)
|
Grants related to assets
|
Government grants whose primary condition is that the Group purchase,
construct or otherwise acquire long-term assets 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.
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 separate items 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 servicing are recognized in profit or loss as incurred.
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 assets
|
The carrying amounts of the Groups non-financial
assets, other than assets arising from employee benefits, inventories, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such
indication exists, then the assets recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are
tested for impairment annually by comparing their recoverable amount to their carrying amount.
29
4.
|
Significant Accounting Policies, Continued
|
|
(13)
|
Impairment of non-financial assets, Continued
|
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 discount
rate that reflect current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset
or CGU.
An impairment loss is recognized in profit or loss if the carrying amount of an asset or a CGU 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
goodwill 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 assets 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.
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.
At the commencement of the lease term, the Group recognizes as finance assets
and finance liabilities in its consolidated statements 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 lessee adopts for depreciable assets that are owned. If there is no reasonable certainty that the lessee 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 asset may be impaired.
30
4.
|
Significant Accounting Policies, Continued
|
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 shall be 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 or assets (the 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 shall be reduced as payments are made and an imputed finance charge on the liability recognized
using the purchasers incremental borrowing rate of interest.
|
(15)
|
Non-current assets held for sale
|
Non-current assets, or disposal groups comprising assets and
liabilities, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. In order to be classified as held for sale, the asset (or disposal group) must be available for immediate sale
in its present condition and its sale must be highly probable. The assets or disposal group that are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. The Group
recognizes an impairment loss for any initial or subsequent write-down of an asset (or disposal group) to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss
previously recognized in accordance with K-IFRS No. 1036, Impairment of Assets.
A non-current asset that is classified as held
for sale or part of a disposal group classified as held for sale is not depreciated (or amortized).
31
4.
|
Significant Accounting Policies, Continued
|
|
(16)
|
Non-derivative financial liabilities
|
The Group classifies non-derivative financial liabilities
into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities
in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.
|
(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 acquisition are recognized in profit or loss as incurred.
|
(ii)
|
Other financial liabilities
|
Non-derivative financial liabilities other than financial
liabilities at fair value through profit or loss are classified as other financial liabilities. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the
acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
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).
|
(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, and are calculated at the present value of the amount of future benefit that employees have earned in return for their service in the
current and prior periods. Any changes from remeasurements are recognized through profit or loss in the period in which they arise.
32
4.
|
Significant Accounting Policies, Continued
|
|
(17)
|
Employee benefits, Continued
|
|
(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
|
As of the end of reporting period, defined benefits
liabilities relating to defined benefit plans are recognized as 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 comprise of actuarial gains and losses, the return on plan assets excluding
amounts included in net interest on the net defined benefit liability, and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and recognized 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.
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, then they are discounted to their present value.
33
4.
|
Significant Accounting Policies, Continued
|
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 shall be
recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be 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
shall be used only for expenditures for which the provision was originally recognized.
|
(i)
|
Foreign currency transactions
|
Transactions in foreign currencies are translated to the
respective functional currencies of Group entities 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 dates
exchange rate. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of
available-for-sale equity instruments, a financial liability designated as a hedge of the net investment in a foreign operation, or qualifying cash flow hedges, which are recognized in other comprehensive income. Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
If the presentation currency of the Group is different from a foreign
operations 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.
34
4.
|
Significant Accounting Policies, Continued
|
|
(19)
|
Foreign currencies, Continued
|
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.
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 interest. In any other partial
disposal of a foreign operation, the relevant proportion is reclassified to profit or loss.
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 share capital, 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 not recognized as current profit or loss. If the Group acquires and retains treasury shares, the consideration paid or received is directly recognized in equity.
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.
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.
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. Revenues received for the activation of service are deferred and recognized over the average customer retention period.
Revenue from fixed-line services includes domestic short and long distance charges, international phone connection charges, and broadband
internet services. Such revenues are recognized as the related services are performed.
Revenue from 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.
35
4.
|
Significant Accounting Policies, Continued
|
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)
|
Customer loyalty programmes
|
For customer loyalty programmes, 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 programmes 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.
|
(iv)
|
Bundled arrangements
|
When the Group sells both handsets and wireless services to subscribers,
the Group recognizes these transactions separately as sales for handset sales and wireless telecommunication services.
|
(23)
|
Finance income and finance costs
|
Finance income comprises interest income on funds invested
(including available-for-sale financial assets), dividend income, gains on the disposal of available-for-sale financial assets, changes in the fair value of financial assets at fair value through profit or loss, and gains on hedging instruments that
are recognized in profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest rate method. Dividend income is recognized in profit or loss on the date that the Groups right to receive payment is
established.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the 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 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.
36
4.
|
Significant Accounting Policies, Continued
|
|
(24)
|
Income taxes, Continued
|
Current tax is the expected tax payable or receivable on the taxable profit or
loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since
the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.
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 associated
with investments in subsidiaries and associates, except to the extent 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 arising from investments in subsidiaries and associates, 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.
The carrying amount of a deferred tax
asset is reviewed 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 (a) there is a legally enforceable right to offset the related current tax liabilities
and assets, (b) they relate to income taxes levied by the same tax authority and (c) they intend to settle 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.
37
4.
|
Significant Accounting Policies, Continued
|
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 convertible notes and share options granted to employees.
|
(26)
|
Discontinued operations
|
A discontinued operation is a component of the Groups business
that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. When an operation is classified as a discontinued
operation, the comparative consolidated statement of comprehensive income is re-presented as if the operation had been discontinued from the start of the comparative period.
|
(27)
|
New standards and interpretations not yet adopted
|
The following new standards, have been
published and are mandatory for the Group for annual period beginning on January 1, 2018, and the Group has not early adopted them.
As of
December 31, 2015, management is in the process of evaluating the impact of applying these standards on its financial position and results of operations.
|
1)
|
K-IFRS 1109 Financial Instruments
|
K-IFRS 1109, published in December 2015,
replaces the existing guidance in K-IFRS 1039, Financial Instruments: Recognition and Measurement. K-IFRS 1109 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating
impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from K-IFRS 1039. K-IFRS 1109 is effective for annual periods beginning on
or after January 1, 2018, with early adoption permitted.
|
2)
|
K-IFRS 1115 Revenue from Contracts with Customers
|
K-IFRS 1115, published in
December 2015, establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including K-IFRS 1018, Revenue, K-IFRS 1011, Construction Contracts and K-IFRS
2113, Customer Loyalty Programmes. K-IFRS 1115 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted.
38
The Groups operating segments have been determined to be each
business unit, for which the Group provides independent services and merchandise. The Groups reportable segments are: 1) cellular services, which include cellular voice service, wireless data service and wireless internet services, and 2)
fixed-line telecommunication services, which include telephone services, internet services, and leased line services. All other operating segments, which include the Groups internet portal services and other immaterial operations, do not meet
the quantitative thresholds to be considered reportable segments and are presented as others.
|
(1)
|
Segment information as of and for the years ended December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
|
|
Cellular
Services
|
|
|
Fixed-line
telecommunication
services
|
|
|
Others
|
|
|
Sub-total
|
|
|
Consolidation
adjustments
|
|
|
Consolidated
amount
|
|
Total revenue
|
|
W
|
14,962,689
|
|
|
|
3,162,712
|
|
|
|
2,113,543
|
|
|
|
20,238,944
|
|
|
|
(3,102,210
|
)
|
|
|
17,136,734
|
|
Inter-segment revenue
|
|
|
1,693,411
|
|
|
|
668,139
|
|
|
|
740,660
|
|
|
|
3,102,210
|
|
|
|
(3,102,210
|
)
|
|
|
|
|
External revenue
|
|
|
13,269,278
|
|
|
|
2,494,573
|
|
|
|
1,372,883
|
|
|
|
17,136,734
|
|
|
|
|
|
|
|
17,136,734
|
|
Depreciation and amortization
|
|
|
2,174,819
|
|
|
|
531,106
|
|
|
|
139,370
|
|
|
|
2,845,295
|
|
|
|
|
|
|
|
2,845,295
|
|
Operating income (loss)
|
|
|
1,678,339
|
|
|
|
108,252
|
|
|
|
(78,585
|
)
|
|
|
1,708,006
|
|
|
|
|
|
|
|
1,708,006
|
|
Finance income and costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(246,200
|
)
|
Gain related to investments in subsidiaries, associates and joint ventures, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
786,140
|
|
Other non-operating income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(212,581
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,035,365
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
23,861,267
|
|
|
|
3,600,890
|
|
|
|
3,008,592
|
|
|
|
30,470,749
|
|
|
|
(1,889,362
|
)
|
|
|
28,581,387
|
|
Total liabilities
|
|
|
9,788,635
|
|
|
|
2,284,362
|
|
|
|
963,612
|
|
|
|
13,036,609
|
|
|
|
170,682
|
|
|
|
13,207,291
|
|
39
5.
|
Operating Segments, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
|
|
Cellular
Services
|
|
|
Fixed-line
telecommunication
services
|
|
|
Others
|
|
|
Sub-total
|
|
|
Consolidation
adjustments
|
|
|
Consolidated
Amount
|
|
Total revenue
|
|
W
|
15,248,039
|
|
|
|
3,119,845
|
|
|
|
1,884,784
|
|
|
|
20,252,668
|
|
|
|
(3,088,870
|
)
|
|
|
17,163,798
|
|
Inter-segment revenue
|
|
|
1,720,158
|
|
|
|
669,925
|
|
|
|
698,787
|
|
|
|
3,088,870
|
|
|
|
(3,088,870
|
)
|
|
|
|
|
External revenue
|
|
|
13,527,881
|
|
|
|
2,449,920
|
|
|
|
1,185,997
|
|
|
|
17,163,798
|
|
|
|
|
|
|
|
17,163,798
|
|
Depreciation and amortization
|
|
|
2,113,510
|
|
|
|
501,623
|
|
|
|
99,597
|
|
|
|
2,714,730
|
|
|
|
|
|
|
|
2,714,730
|
|
Operating income (loss)
|
|
|
1,754,433
|
|
|
|
80,423
|
|
|
|
(9,751
|
)
|
|
|
1,825,105
|
|
|
|
|
|
|
|
1,825,105
|
|
Finance income and costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(260,336
|
)
|
Gain related to investments in subsidiaries, associates and joint ventures, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
906,338
|
|
Other non-operating income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(217,279
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,253,828
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
23,451,471
|
|
|
|
3,434,020
|
|
|
|
3,202,833
|
|
|
|
30,088,324
|
|
|
|
(2,147,091
|
)
|
|
|
27,941,233
|
|
Total liabilities
|
|
|
9,626,724
|
|
|
|
2,172,454
|
|
|
|
924,683
|
|
|
|
12,723,861
|
|
|
|
(30,898
|
)
|
|
|
12,692,963
|
|
Intersegment sales and purchases are conducted on an arms-length basis and eliminated on consolidation. Since
there are no intersegment sales of inventory, there is no unrealized intersegment profit to be eliminated on consolidation. The Group principally operates its business in its domestic market in Korea and the amounts outside of Korea are immaterial,
therefore no entity-wide geographical information is presented.
No single customer contributed 10% or more to the Groups total
revenue for the years ended December 31, 2015 and 2014.
40
Deposits which are restricted in use as of December 31, 2015 and
2014 are summarized as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Short-term financial instruments
|
|
|
|
|
|
|
|
|
Charitable fund(*)
|
|
W
|
79,500
|
|
|
|
86,000
|
|
Other
|
|
|
2,969
|
|
|
|
4,321
|
|
Long-term financial instruments
|
|
|
10,596
|
|
|
|
612
|
|
Guarantee deposits
|
|
|
280
|
|
|
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
93,345
|
|
|
|
91,213
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Group established a trust fund for charitable purposes. Profits from the fund are donated to charitable institutions. As of December 31, 2015, the funds cannot be withdrawn.
|
7.
|
Trade and Other Receivables
|
|
(1)
|
Details of trade and other receivables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
Gross
amount
|
|
|
Allowances for
impairment
|
|
|
Carrying
amount
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade
|
|
W
|
2,583,558
|
|
|
|
(238,691
|
)
|
|
|
2,344,867
|
|
Short-term loans
|
|
|
54,377
|
|
|
|
(482
|
)
|
|
|
53,895
|
|
Accounts receivable other
|
|
|
752,731
|
|
|
|
(78,992
|
)
|
|
|
673,739
|
|
Accrued income
|
|
|
10,753
|
|
|
|
|
|
|
|
10,753
|
|
Others
|
|
|
1,861
|
|
|
|
|
|
|
|
1,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,403,280
|
|
|
|
(318,165
|
)
|
|
|
3,085,115
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
87,501
|
|
|
|
(25,047
|
)
|
|
|
62,454
|
|
Long-term accounts receivable - other
|
|
|
2,420
|
|
|
|
|
|
|
|
2,420
|
|
Guarantee deposits
|
|
|
297,281
|
|
|
|
|
|
|
|
297,281
|
|
Long-term accounts receivable - trade
|
|
|
46,047
|
|
|
|
(804
|
)
|
|
|
45,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
433,249
|
|
|
|
(25,851
|
)
|
|
|
407,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,836,529
|
|
|
|
(344,016
|
)
|
|
|
3,492,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
7.
|
Trade and Other Receivables, Continued
|
|
(1)
|
Details of trade and other receivables as of December 31, 2015 and 2014 are as follows, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
Gross
amount
|
|
|
Allowances for
impairment
|
|
|
Carrying
Amount
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade
|
|
W
|
2,614,059
|
|
|
|
(221,909
|
)
|
|
|
2,392,150
|
|
Short-term loans
|
|
|
75,199
|
|
|
|
(687
|
)
|
|
|
74,512
|
|
Accounts receivable other
|
|
|
769,115
|
|
|
|
(78,588
|
)
|
|
|
690,527
|
|
Accrued income
|
|
|
10,134
|
|
|
|
|
|
|
|
10,134
|
|
Others
|
|
|
3,865
|
|
|
|
|
|
|
|
3,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,472,372
|
|
|
|
(301,184
|
)
|
|
|
3,171,188
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
82,735
|
|
|
|
(27,007
|
)
|
|
|
55,728
|
|
Long-term accounts receivable - other
|
|
|
3,596
|
|
|
|
|
|
|
|
3,596
|
|
Guarantee deposits
|
|
|
285,144
|
|
|
|
|
|
|
|
285,144
|
|
Long-term accounts receivable trade
|
|
|
68,536
|
|
|
|
|
|
|
|
68,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
440,011
|
|
|
|
(27,007
|
)
|
|
|
413,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,912,383
|
|
|
|
(328,191
|
)
|
|
|
3,584,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The movements in allowances for doubtful accounts of trade and other receivables during the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Balance at January 1
|
|
W
|
328,191
|
|
|
|
323,984
|
|
Increase of bad debt allowances
|
|
|
75,773
|
|
|
|
63,697
|
|
Write-offs
|
|
|
(87,798
|
)
|
|
|
(89,529
|
)
|
Other
|
|
|
27,850
|
|
|
|
30,039
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31
|
|
W
|
344,016
|
|
|
|
328,191
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of overdue but not impaired, and impaired trade and other receivable as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
Neither overdue nor impaired
|
|
W
|
1,841,442
|
|
|
|
1,053,096
|
|
|
|
1,831,243
|
|
|
|
1,089,001
|
|
Overdue but not impaired
|
|
|
77,008
|
|
|
|
5,155
|
|
|
|
76,671
|
|
|
|
3,481
|
|
Impaired
|
|
|
711,155
|
|
|
|
148,673
|
|
|
|
774,681
|
|
|
|
137,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,629,605
|
|
|
|
1,206,924
|
|
|
|
2,682,595
|
|
|
|
1,229,788
|
|
Allowances for doubtful accounts
|
|
|
(239,495
|
)
|
|
|
(104,521
|
)
|
|
|
(221,909
|
)
|
|
|
(106,282
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,390,110
|
|
|
|
1,102,403
|
|
|
|
2,460,686
|
|
|
|
1,123,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
42
7.
|
Trade and Other Receivables, Continued
|
|
(4)
|
The aging of overdue but not impaired accounts receivable as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
Less than 1 month
|
|
W
|
20,908
|
|
|
|
2,770
|
|
|
|
25,254
|
|
|
|
1,795
|
|
1 ~ 3 months
|
|
|
21,941
|
|
|
|
924
|
|
|
|
26,469
|
|
|
|
213
|
|
3 ~ 6 months
|
|
|
7,043
|
|
|
|
265
|
|
|
|
11,641
|
|
|
|
608
|
|
More than 6 months
|
|
|
27,116
|
|
|
|
1,196
|
|
|
|
13,307
|
|
|
|
865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
77,008
|
|
|
|
5,155
|
|
|
|
76,671
|
|
|
|
3,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of inventories as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
Acquisition
cost
|
|
|
Write-down
of inventory
|
|
|
Carrying
amount
|
|
|
Acquisition
cost
|
|
|
Write-down
of inventory
|
|
|
Carrying
amount
|
|
Merchandise
|
|
W
|
247,294
|
|
|
|
(5,064
|
)
|
|
|
242,230
|
|
|
|
252,063
|
|
|
|
(5,325
|
)
|
|
|
246,738
|
|
Finished goods
|
|
|
3,530
|
|
|
|
(179
|
)
|
|
|
3,351
|
|
|
|
1,930
|
|
|
|
(216
|
)
|
|
|
1,714
|
|
Work in process
|
|
|
1,976
|
|
|
|
(149
|
)
|
|
|
1,827
|
|
|
|
1,144
|
|
|
|
(131
|
)
|
|
|
1,013
|
|
Raw materials and supplies
|
|
|
27,296
|
|
|
|
(1,148
|
)
|
|
|
26,148
|
|
|
|
19,242
|
|
|
|
(1,040
|
)
|
|
|
18,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
280,096
|
|
|
|
(6,540
|
)
|
|
|
273,556
|
|
|
|
274,379
|
|
|
|
(6,712
|
)
|
|
|
267,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There are no significant reversals of inventory write-downs for the periods presented.
43
|
(1)
|
Details of short-term investment securities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Beneficiary certificates(*)
|
|
W
|
92,262
|
|
|
|
277,003
|
|
Current portion of long-term investment securities
|
|
|
|
|
|
|
3,158
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
92,262
|
|
|
|
280,161
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The distributions arising from beneficiary certificates as of December 31, 2015 were accounted for as accrued income.
|
|
(2)
|
Details of long-term investment securities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
Marketable equity securities
|
|
W
|
897,958
|
|
|
|
657,286
|
|
Unlisted equity securities(*1)
|
|
|
96,899
|
|
|
|
56,236
|
|
Equity investments(*2)
|
|
|
207,916
|
|
|
|
209,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,202,773
|
|
|
|
922,642
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
Public bonds(*3)
|
|
|
|
|
|
|
158
|
|
Investment bonds(*4)
|
|
|
4,453
|
|
|
|
36,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,453
|
|
|
|
36,796
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,207,226
|
|
|
|
959,438
|
|
Less current portion of long-term investment securities
|
|
|
|
|
|
|
(3,158
|
)
|
|
|
|
|
|
|
|
|
|
Long-term investment securities
|
|
W
|
1,207,226
|
|
|
|
956,280
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Unlisted equity securities whose fair value cannot be measured reliably are recorded at cost.
|
(*2)
|
Equity investments are recorded at cost.
|
(*3)
|
Details of maturity for the public bonds as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Less than 1 year
|
|
W
|
|
|
|
|
158
|
|
(*4)
|
During the year ended December 31, 2015, the Parent Company exercised the conversion right for the convertible bonds of Health Connect Co., Ltd., which were classified as available-for-sale financial assets. Health
Connect Co., Ltd. has been classified as investments in associates (
W
5,900 million) as the Parent Company obtained significant influence over the company. As a result of this transaction, investments in associates have increased by
W
5,900 million and the remaining convertible bonds of
W
560 million was fully redeemed.
|
44
10.
|
Assets and Liabilities Classified as Held for Sale
|
During the year ended December 31,
2014, the Group entered into a disposal contract regarding the Groups ownership interests in Shenzhen E-eye High Tech Co., Ltd., the Parent Companys subsidiary. Assets and liabilities of the subsidiary amounting to
W
10,510 million and
W
408 million, were reclassified to assets and liabilities held for sale, respectively, and the carrying amount in excess of the fair value less cost to sell was recognized as impairment loss. The
ownership interests of Shenzhen E-eye High Tech Co., Ltd. were disposed during the year ended December 31, 2015.
11.
|
Business Combinations
|
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 manages facility guarding 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)
|
Consideration paid and assets and liabilities transferred
|
Consideration paid and assets in
succession recognized at the acquisition date are as follows:
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
Consideration paid
|
|
|
|
|
Cash and cash equivalents
|
|
W
|
13,197
|
|
Accounts payable - other
|
|
|
1,858
|
|
|
|
|
|
|
|
|
W
|
15,055
|
|
|
|
|
|
|
Assets transferred
|
|
|
|
|
Property and equipment
|
|
W
|
3,208
|
|
Intangible assets
|
|
|
8,486
|
|
Other assets
|
|
|
1,603
|
|
|
|
|
|
|
|
|
W
|
13,297
|
|
|
|
|
|
|
|
(3)
|
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. There is no
impact on the consolidated financial statements as it is a business combination under common control.
|
45
12.
|
Investments in Associates and Joint Ventures
|
|
(1)
|
Investments in associates and joint ventures accounted for using the equity method as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Country
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
Investments in associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.(*1)
|
|
China
|
|
|
9.6
|
|
|
W
|
43,814
|
|
|
|
9.6
|
|
|
W
|
35,817
|
|
Korea IT Fund(*2)
|
|
Korea
|
|
|
63.3
|
|
|
|
260,456
|
|
|
|
63.3
|
|
|
|
240,676
|
|
KEB HanaCard Co., Ltd.(*1,3)
|
|
Korea
|
|
|
15.0
|
|
|
|
254,177
|
|
|
|
25.4
|
|
|
|
425,140
|
|
Candle Media Co., Ltd.
|
|
Korea
|
|
|
35.1
|
|
|
|
20,144
|
|
|
|
35.1
|
|
|
|
19,486
|
|
NanoEnTek, Inc. (*4)
|
|
Korea
|
|
|
28.6
|
|
|
|
45,008
|
|
|
|
26.0
|
|
|
|
36,527
|
|
SK Industrial Development China Co., Ltd.
|
|
Hong Kong
|
|
|
21.0
|
|
|
|
86,324
|
|
|
|
21.0
|
|
|
|
79,394
|
|
Packet One Network(*5)
|
|
Malaysia
|
|
|
|
|
|
|
|
|
|
|
13.6
|
|
|
|
53,670
|
|
SK Technology Innovation Company
|
|
Cayman
|
|
|
49.0
|
|
|
|
45,891
|
|
|
|
49.0
|
|
|
|
44,052
|
|
HappyNarae Co., Ltd.
|
|
Korea
|
|
|
42.5
|
|
|
|
17,095
|
|
|
|
42.5
|
|
|
|
15,551
|
|
SK hynix Inc.
|
|
Korea
|
|
|
20.1
|
|
|
|
5,624,493
|
|
|
|
20.1
|
|
|
|
4,849,159
|
|
SK MENA Investment B.V.
|
|
Netherlands
|
|
|
32.1
|
|
|
|
14,929
|
|
|
|
32.1
|
|
|
|
14,015
|
|
SKY Property Mgmt. Ltd.
|
|
Virgin Island
|
|
|
33.0
|
|
|
|
251,166
|
|
|
|
33.0
|
|
|
|
248,534
|
|
Xinan Tianlong Science and Technology Co., Ltd.
|
|
China
|
|
|
49.0
|
|
|
|
25,767
|
|
|
|
49.0
|
|
|
|
25,874
|
|
Daehan Kanggun BcN Co., Ltd. and others
|
|
|
|
|
|
|
|
|
161,058
|
|
|
|
|
|
|
|
158,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
6,850,322
|
|
|
|
|
|
|
|
6,246,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.(*6)
|
|
Turkey
|
|
|
50.0
|
|
|
|
15,118
|
|
|
|
50.0
|
|
|
|
11,441
|
|
PT. Melon Indonesia
|
|
Indonesia
|
|
|
49.0
|
|
|
|
4,339
|
|
|
|
49.0
|
|
|
|
3,564
|
|
Television Media Korea Ltd.(*7)
|
|
Korea
|
|
|
|
|
|
|
|
|
|
|
51.0
|
|
|
|
6,944
|
|
Celcom Planet
|
|
Malaysia
|
|
|
51.0
|
|
|
|
3,406
|
|
|
|
51.0
|
|
|
|
16,605
|
|
PT XL Planet Digital(*6)
|
|
Indonesia
|
|
|
50.0
|
|
|
|
23,108
|
|
|
|
50.0
|
|
|
|
12,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
45,971
|
|
|
|
|
|
|
|
51,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
W
|
6,896,293
|
|
|
|
|
|
|
W
|
6,298,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(1)
|
Investments in associates and joint ventures accounted for using the equity method as of December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
Classified as investments in associates as the Group can exercise significant influence through participation on the board of directors even though the Group has less than 20% of equity interests.
|
(*2)
|
Investment in Korea IT Fund was classified as investment in associates as the Group has less than 50% of voting rights, and therefore does not have control over Korea IT Fund under the agreement.
|
(*3)
|
During the year ended December 31, 2015, the Group disposed of 27,725,264 shares of KEB HanaCard Co., Ltd.
|
(*4)
|
During the year ended December 31, 2015, the Group newly acquired 1,090,155 shares of NanoEnTek, Inc. by participating in paid in capital increase allocation of third parties.
|
(*5)
|
Reclassified from investment in associates to available-for-sale financial assets during the year ended December 31, 2015, as the Group lost the right to appoint directors of this investee and consequently no longer has
significant influence.
|
(*6)
|
There were additional investments in associates and joint ventures during the year ended December 31, 2015.
|
(*7)
|
During the year ended December 31, 2015, the Group disposed of all shares of Television Media Korea Ltd.
|
47
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(2)
|
The market price of investments in listed associates as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share and per share data)
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
Candle Media Co., Ltd.
|
|
W
|
1,170
|
|
|
|
21,620,360
|
|
|
|
25,296
|
|
|
|
734
|
|
|
|
21,620,360
|
|
|
|
15,869
|
|
NanoEnTek, Inc.
|
|
|
7,300
|
|
|
|
6,960,445
|
|
|
|
50,811
|
|
|
|
5,710
|
|
|
|
5,870,290
|
|
|
|
33,519
|
|
SK hynix Inc.
|
|
|
30,750
|
|
|
|
146,100,000
|
|
|
|
4,492,575
|
|
|
|
47,750
|
|
|
|
146,100,000
|
|
|
|
6,976,275
|
|
|
(3)
|
The financial information of the significant investees as of and for the years ended December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2015
|
|
|
|
SK hynix
Inc.
|
|
|
KEB
HanaCard
Co., Ltd.
|
|
|
SKY
Property
Mgmt. Ltd.
|
|
|
Korea IT
Fund
|
|
Current assets
|
|
W
|
9,760,030
|
|
|
|
6,228,076
|
|
|
|
176,517
|
|
|
|
152,070
|
|
Non-current assets
|
|
|
19,917,876
|
|
|
|
509,579
|
|
|
|
650,661
|
|
|
|
259,176
|
|
Current liabilities
|
|
|
4,840,698
|
|
|
|
1,103,873
|
|
|
|
242,002
|
|
|
|
|
|
Non-current liabilities
|
|
|
3,449,505
|
|
|
|
4,297,289
|
|
|
|
39,154
|
|
|
|
|
|
Revenue
|
|
|
18,797,998
|
|
|
|
1,472,830
|
|
|
|
89,161
|
|
|
|
30,875
|
|
Profit from continuing operations
|
|
|
4,323,595
|
|
|
|
10,119
|
|
|
|
19,722
|
|
|
|
21,655
|
|
Other comprehensive income (loss)
|
|
|
40,215
|
|
|
|
(547
|
)
|
|
|
(11,872
|
)
|
|
|
15,651
|
|
|
|
|
|
|
Total comprehensive income
|
|
|
4,363,810
|
|
|
|
9,572
|
|
|
|
7,850
|
|
|
|
37,306
|
|
48
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(3)
|
The financial information of the significant investees as of and for the years ended December 31, 2015 and 2014 is as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2014
|
|
|
|
SK hynix
Inc.
|
|
|
KEB
HanaCard
Co., Ltd.(*)
|
|
|
SKY
Property
Mgmt. Ltd.
|
|
|
Korea IT
Fund
|
|
Current assets
|
|
W
|
10,363,514
|
|
|
|
6,716,612
|
|
|
|
172,775
|
|
|
|
122,026
|
|
Non-current assets
|
|
|
16,519,764
|
|
|
|
568,065
|
|
|
|
667,560
|
|
|
|
258,144
|
|
Current liabilities
|
|
|
5,765,304
|
|
|
|
848,140
|
|
|
|
62,868
|
|
|
|
|
|
Non-current liabilities
|
|
|
3,081,671
|
|
|
|
5,109,888
|
|
|
|
242,116
|
|
|
|
|
|
Revenue
|
|
|
17,125,566
|
|
|
|
305,756
|
|
|
|
81,502
|
|
|
|
18,883
|
|
Profit (loss) from continuing operations
|
|
|
4,195,169
|
|
|
|
(11,196
|
)
|
|
|
15,006
|
|
|
|
5,470
|
|
Other comprehensive income (loss)
|
|
|
(52,360
|
)
|
|
|
(734
|
)
|
|
|
(6,090
|
)
|
|
|
4,837
|
|
Total comprehensive income (loss)
|
|
|
4,142,809
|
|
|
|
(11,930
|
)
|
|
|
8,916
|
|
|
|
10,307
|
|
(*)
|
Pre-merger revenue and net profit of KEB HanaCard Co., Ltd., amounting to
W
853,506 million and
W
3,521 million, respectively, were not included.
|
|
(4)
|
The condensed financial information of joint ventures as of and for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2015
|
|
|
|
Dogus Planet,
Inc.
|
|
|
PT. Melon
Indonesia
|
|
|
PT XL
Planet
Digital
|
|
|
Celcom
Planet
|
|
Current assets
|
|
W
|
46,248
|
|
|
|
12,805
|
|
|
|
9,500
|
|
|
|
21,416
|
|
Cash and cash equivalents
|
|
|
8,091
|
|
|
|
4,027
|
|
|
|
5,034
|
|
|
|
19,371
|
|
Non-current assets
|
|
|
18,088
|
|
|
|
2,657
|
|
|
|
46,013
|
|
|
|
5,519
|
|
Current liabilities
|
|
|
34,022
|
|
|
|
6,416
|
|
|
|
8,583
|
|
|
|
20,257
|
|
Account payable, other payables and provision
|
|
|
4,317
|
|
|
|
3,396
|
|
|
|
3,648
|
|
|
|
5,889
|
|
Non-current liabilities
|
|
|
78
|
|
|
|
140
|
|
|
|
714
|
|
|
|
|
|
Account payable, other payables and provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
38,944
|
|
|
|
17,094
|
|
|
|
5,536
|
|
|
|
1,647
|
|
Depreciation and amortization
|
|
|
(5,318
|
)
|
|
|
(132
|
)
|
|
|
(2,746
|
)
|
|
|
(1,332
|
)
|
Interest income
|
|
|
465
|
|
|
|
288
|
|
|
|
525
|
|
|
|
345
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (income)
|
|
|
|
|
|
|
|
|
|
|
(7,025
|
)
|
|
|
|
|
|
|
|
|
|
Profit (loss) from continuing operations
|
|
|
(32,713
|
)
|
|
|
1,853
|
|
|
|
(21,381
|
)
|
|
|
(25,881
|
)
|
|
|
|
|
|
Total comprehensive income (loss)
|
|
|
(32,713
|
)
|
|
|
1,853
|
|
|
|
(21,381
|
)
|
|
|
(25,881
|
)
|
49
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(4)
|
The condensed financial information of joint ventures as of and for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2014
|
|
|
|
Television
Media
Korea Ltd.
|
|
|
Dogus
Planet, Inc.
|
|
|
PT. Melon
Indonesia
|
|
|
PT XL
Planet
Digital
|
|
|
Celcom
Planet
|
|
Current assets
|
|
W
|
16,252
|
|
|
|
38,641
|
|
|
|
10,022
|
|
|
|
9,241
|
|
|
|
30,407
|
|
Cash and cash equivalents
|
|
|
5,104
|
|
|
|
6
|
|
|
|
4,763
|
|
|
|
6,710
|
|
|
|
30,400
|
|
Non-current assets
|
|
|
4,543
|
|
|
|
13,011
|
|
|
|
3,094
|
|
|
|
14,589
|
|
|
|
3,343
|
|
Current liabilities
|
|
|
7,188
|
|
|
|
28,406
|
|
|
|
5,689
|
|
|
|
4,198
|
|
|
|
1,182
|
|
Account payable, other payables and provisions
|
|
|
265
|
|
|
|
3,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
464
|
|
|
|
377
|
|
|
|
102
|
|
|
|
124
|
|
|
|
|
|
Account payable, other payables and provisions
|
|
|
464
|
|
|
|
377
|
|
|
|
|
|
|
|
124
|
|
|
|
|
|
Revenue
|
|
|
16,403
|
|
|
|
23,897
|
|
|
|
11,826
|
|
|
|
1,019
|
|
|
|
|
|
Depreciation and amortization
|
|
|
(3,732
|
)
|
|
|
(2,402
|
)
|
|
|
(928
|
)
|
|
|
(1,452
|
)
|
|
|
(1
|
)
|
Interest income
|
|
|
254
|
|
|
|
1,154
|
|
|
|
268
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,334
|
)
|
|
|
|
|
Profit (loss) from continuing operations
|
|
|
(3,361
|
)
|
|
|
(37,146
|
)
|
|
|
523
|
|
|
|
(15,596
|
)
|
|
|
(1,479
|
)
|
Total comprehensive income (loss)
|
|
|
(3,361
|
)
|
|
|
(37,146
|
)
|
|
|
523
|
|
|
|
(15,596
|
)
|
|
|
(1,479
|
)
|
50
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(5)
|
Reconciliations of financial information of significant associates to carrying amounts of investments in associates in the consolidated financial statements as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Net assets
|
|
|
Ownership
interests
(%)
|
|
|
Net assets
attributable to
the ownership
interests
|
|
|
Cost-book
value
differentials
|
|
|
Carrying
amount
|
|
Associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*1,2)
|
|
W
|
21,386,863
|
|
|
|
20.1
|
|
|
|
4,425,794
|
|
|
|
1,198,699
|
|
|
|
5,624,493
|
|
KEB HanaCard Co., Ltd.
|
|
|
1,336,493
|
|
|
|
15.0
|
|
|
|
200,474
|
|
|
|
53,703
|
|
|
|
254,177
|
|
SKY Property Mgmt. Ltd.(*1)
|
|
|
537,847
|
|
|
|
33.0
|
|
|
|
177,490
|
|
|
|
73,676
|
|
|
|
251,166
|
|
Korea IT Fund
|
|
|
411,246
|
|
|
|
63.3
|
|
|
|
260,456
|
|
|
|
|
|
|
|
260,456
|
|
(*1)
|
These entities prepare consolidated financial statements and net assets of these entities represent net assets attributable to owners of the Parent Company.
|
(*2)
|
The ownership interest is based on the number of shares owned by the Parent Company for the total listed shares of 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 for the total issued shares outstanding not including the shares held by the investee as treasury shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Net assets
|
|
|
Ownership
interests
(%)
|
|
|
Net assets
attributable to
the ownership
interests
|
|
|
Cost-book
value
differentials
|
|
|
Carrying
amount
|
|
Associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*)
|
|
W
|
18,036,453
|
|
|
|
20.1
|
|
|
|
3,619,666
|
|
|
|
1,229,493
|
|
|
|
4,849,159
|
|
KEB HanaCard Co., Ltd.
|
|
|
1,326,649
|
|
|
|
25.4
|
|
|
|
337,266
|
|
|
|
87,874
|
|
|
|
425,140
|
|
SKY Property Mgmt. Ltd.(*)
|
|
|
527,479
|
|
|
|
33.0
|
|
|
|
174,068
|
|
|
|
74,466
|
|
|
|
248,534
|
|
Korea IT Fund
|
|
|
380,170
|
|
|
|
63.3
|
|
|
|
240,676
|
|
|
|
|
|
|
|
240,676
|
|
(*)
|
These entities prepare consolidated financial statements and net assets of these entities represent net assets attributable to owners of the Parent Company.
|
51
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(6)
|
Details of changes in investments in associates and joint ventures accounted for using the equity method for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Beginning
balance
|
|
|
Acquisition
and
disposition
|
|
|
Share of
profits
(losses)
|
|
|
Other
comprehensive
income
(loss)
|
|
|
Impairment
loss
|
|
|
Other
increase
(decrease)
|
|
|
Ending
balance
|
|
Investments in associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.
|
|
|
35,817
|
|
|
|
|
|
|
|
4,361
|
|
|
|
3,636
|
|
|
|
|
|
|
|
|
|
|
|
43,814
|
|
Korea IT Fund(*)
|
|
|
240,676
|
|
|
|
|
|
|
|
11,971
|
|
|
|
9,912
|
|
|
|
|
|
|
|
(2,103
|
)
|
|
|
260,456
|
|
KEB HanaCard Co., Ltd.
|
|
|
425,140
|
|
|
|
(174,475
|
)
|
|
|
3,275
|
|
|
|
237
|
|
|
|
|
|
|
|
|
|
|
|
254,177
|
|
Candle Media Co., Ltd.
|
|
|
19,486
|
|
|
|
|
|
|
|
550
|
|
|
|
70
|
|
|
|
|
|
|
|
38
|
|
|
|
20,144
|
|
NanoEnTek, Inc.
|
|
|
36,527
|
|
|
|
10,000
|
|
|
|
(1,649
|
)
|
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
45,008
|
|
SK Industrial Development China Co., Ltd.
|
|
|
79,394
|
|
|
|
|
|
|
|
3,380
|
|
|
|
3,550
|
|
|
|
|
|
|
|
|
|
|
|
86,324
|
|
Packet One Network
|
|
|
53,670
|
|
|
|
|
|
|
|
(8,714
|
)
|
|
|
(3,030
|
)
|
|
|
|
|
|
|
(41,926
|
)
|
|
|
|
|
SK Technology Innovation Company
|
|
|
44,052
|
|
|
|
|
|
|
|
(2,907
|
)
|
|
|
4,746
|
|
|
|
|
|
|
|
|
|
|
|
45,891
|
|
HappyNarae Co., Ltd.
|
|
|
15,551
|
|
|
|
|
|
|
|
1,589
|
|
|
|
(45
|
)
|
|
|
|
|
|
|
|
|
|
|
17,095
|
|
SK hynix Inc.(*)
|
|
|
4,849,159
|
|
|
|
|
|
|
|
842,086
|
|
|
|
(22,922
|
)
|
|
|
|
|
|
|
(43,830
|
)
|
|
|
5,624,493
|
|
SK MENA Investment B.V.
|
|
|
14,015
|
|
|
|
|
|
|
|
3
|
|
|
|
911
|
|
|
|
|
|
|
|
|
|
|
|
14,929
|
|
SKY Property Mgmt. Ltd.
|
|
|
248,534
|
|
|
|
|
|
|
|
6,408
|
|
|
|
(3,776
|
)
|
|
|
|
|
|
|
|
|
|
|
251,166
|
|
Xinan Tianlong Science and Technology Co., Ltd.
|
|
|
25,874
|
|
|
|
|
|
|
|
(107
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,767
|
|
Daehan Kanggun BcN Co., Ltd. and others(*)
|
|
|
158,725
|
|
|
|
12,320
|
|
|
|
(15,726
|
)
|
|
|
1,689
|
|
|
|
(1,305
|
)
|
|
|
5,355
|
|
|
|
161,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
6,246,620
|
|
|
|
(152,155
|
)
|
|
|
844,520
|
|
|
|
(4,892
|
)
|
|
|
(1,305
|
)
|
|
|
(82,466
|
)
|
|
|
6,850,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.
|
|
|
11,441
|
|
|
|
16,419
|
|
|
|
(16,357
|
)
|
|
|
3,615
|
|
|
|
|
|
|
|
|
|
|
|
15,118
|
|
PT. Melon Indonesia
|
|
|
3,564
|
|
|
|
|
|
|
|
908
|
|
|
|
(133
|
)
|
|
|
|
|
|
|
|
|
|
|
4,339
|
|
Television Media Korea Ltd.
|
|
|
6,944
|
|
|
|
(6,712
|
)
|
|
|
(232
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Celcom Planet
|
|
|
16,605
|
|
|
|
|
|
|
|
(13,199
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,406
|
|
PT XL Planet Digital
|
|
|
12,914
|
|
|
|
20,884
|
|
|
|
(10,690
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
51,468
|
|
|
|
30,591
|
|
|
|
(39,570
|
)
|
|
|
3,482
|
|
|
|
|
|
|
|
|
|
|
|
45,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
6,298,088
|
|
|
|
(121,564
|
)
|
|
|
804,950
|
|
|
|
(1,410
|
)
|
|
|
(1,305
|
)
|
|
|
(82,466
|
)
|
|
|
6,896,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Dividends paid by the associate are deducted from the carrying amount during the year ended December 31, 2015.
|
52
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(6)
|
Details of changes in investments in associates and joint ventures accounted for using the equity method for the year ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Beginning
balance
|
|
|
Acquisition
and
disposition
|
|
|
Share of
profits
(losses)
|
|
|
Other
comprehensive
income
(loss)
|
|
|
Impairment
loss
|
|
|
Other
increase
(decrease)
|
|
|
Ending
balance
|
|
Investments in associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.
|
|
W
|
37,434
|
|
|
|
|
|
|
|
(365
|
)
|
|
|
(1,252
|
)
|
|
|
|
|
|
|
|
|
|
|
35,817
|
|
Korea IT Fund
|
|
|
231,402
|
|
|
|
|
|
|
|
3,243
|
|
|
|
6,031
|
|
|
|
|
|
|
|
|
|
|
|
240,676
|
|
Etoos Co., Ltd.
|
|
|
12,029
|
|
|
|
|
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
(12,375
|
)
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
378,616
|
|
|
|
|
|
|
|
(739
|
)
|
|
|
(2,031
|
)
|
|
|
|
|
|
|
49,294
|
|
|
|
425,140
|
|
Candle Media Co., Ltd.
|
|
|
21,241
|
|
|
|
|
|
|
|
(1,701
|
)
|
|
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
19,486
|
|
NanoEnTek, Inc.
|
|
|
9,312
|
|
|
|
7,778
|
|
|
|
284
|
|
|
|
(27
|
)
|
|
|
|
|
|
|
19,180
|
|
|
|
36,527
|
|
SK Industrial Development China Co., Ltd.
|
|
|
77,517
|
|
|
|
|
|
|
|
(791
|
)
|
|
|
2,668
|
|
|
|
|
|
|
|
|
|
|
|
79,394
|
|
Packet One Network
|
|
|
60,706
|
|
|
|
|
|
|
|
(11,845
|
)
|
|
|
4,809
|
|
|
|
|
|
|
|
|
|
|
|
53,670
|
|
SK Technology Innovation Company
|
|
|
53,874
|
|
|
|
|
|
|
|
(9,822
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,052
|
|
HappyNarae Co., Ltd.
|
|
|
13,935
|
|
|
|
|
|
|
|
1,688
|
|
|
|
(72
|
)
|
|
|
|
|
|
|
|
|
|
|
15,551
|
|
SK hynix Inc.
|
|
|
3,943,232
|
|
|
|
|
|
|
|
916,486
|
|
|
|
(10,559
|
)
|
|
|
|
|
|
|
|
|
|
|
4,849,159
|
|
SK MENA Investment B.V.
|
|
|
13,477
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
542
|
|
|
|
|
|
|
|
|
|
|
|
14,015
|
|
SKY Property Mgmt. Ltd.
|
|
|
238,278
|
|
|
|
|
|
|
|
3,438
|
|
|
|
6,818
|
|
|
|
|
|
|
|
|
|
|
|
248,534
|
|
Xinan Tianlong Science and Technology Co., Ltd.
|
|
|
26,562
|
|
|
|
|
|
|
|
(688
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,874
|
|
Daehan Kanggun BcN Co., Ltd. and others
|
|
|
164,976
|
|
|
|
14,172
|
|
|
|
(18,126
|
)
|
|
|
1,324
|
|
|
|
(2,363
|
)
|
|
|
(1,258
|
)
|
|
|
158,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
5,282,591
|
|
|
|
21,950
|
|
|
|
881,404
|
|
|
|
8,197
|
|
|
|
(2,363
|
)
|
|
|
54,841
|
|
|
|
6,246,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.
|
|
|
10,105
|
|
|
|
19,677
|
|
|
|
(18,573
|
)
|
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
11,441
|
|
PT. Melon Indonesia
|
|
|
3,230
|
|
|
|
|
|
|
|
256
|
|
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
3,564
|
|
Television Media Korea Ltd.
|
|
|
8,659
|
|
|
|
|
|
|
|
(1,715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,944
|
|
Celcom Planet
|
|
|
|
|
|
|
17,433
|
|
|
|
(656
|
)
|
|
|
|
|
|
|
|
|
|
|
(172
|
)
|
|
|
16,605
|
|
PT XL Planet Digital
|
|
|
20,712
|
|
|
|
|
|
|
|
(7,798
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
42,706
|
|
|
|
37,110
|
|
|
|
(28,486
|
)
|
|
|
310
|
|
|
|
|
|
|
|
(172
|
)
|
|
|
51,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
5,325,297
|
|
|
|
59,060
|
|
|
|
852,918
|
|
|
|
8,507
|
|
|
|
(2,363
|
)
|
|
|
54,669
|
|
|
|
6,298,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
12.
|
Investments in Associates and Joint Ventures, Continued
|
|
(7)
|
As the Group discontinued the application of the equity method due to the carrying amount of the Groups share being reduced to zero, the unrecognized accumulated equity losses as of December 31, 2015 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Unrealized loss
|
|
|
Unrealized change in equity
|
|
|
|
Year ended
December 31,
2015
|
|
|
Accumulated
|
|
|
Year ended
December 31,
2015
|
|
|
Accumulated
|
|
Wave City Development Co., Ltd.
|
|
W
|
2,894
|
|
|
|
4,538
|
|
|
|
|
|
|
|
|
|
SK Wyverns Co., Ltd. and others
|
|
|
1,193
|
|
|
|
6,510
|
|
|
|
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,087
|
|
|
|
11,048
|
|
|
|
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.
|
Property and Equipment
|
|
(1)
|
Property and equipment as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment loss
|
|
|
Carrying amount
|
|
Land
|
|
W
|
812,947
|
|
|
|
|
|
|
|
|
|
|
|
812,947
|
|
Buildings
|
|
|
1,563,069
|
|
|
|
(651,940
|
)
|
|
|
|
|
|
|
911,129
|
|
Structures
|
|
|
763,122
|
|
|
|
(418,901
|
)
|
|
|
|
|
|
|
344,221
|
|
Machinery
|
|
|
28,624,842
|
|
|
|
(21,281,400
|
)
|
|
|
(1,433
|
)
|
|
|
7,342,009
|
|
Other
|
|
|
1,511,304
|
|
|
|
(1,036,780
|
)
|
|
|
(1,086
|
)
|
|
|
473,438
|
|
Construction in progress
|
|
|
487,512
|
|
|
|
|
|
|
|
|
|
|
|
487,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
33,762,796
|
|
|
|
(23,389,021
|
)
|
|
|
(2,519
|
)
|
|
|
10,371,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment loss
|
|
|
Carrying amount
|
|
Land
|
|
W
|
766,780
|
|
|
|
|
|
|
|
|
|
|
|
766,780
|
|
Buildings
|
|
|
1,537,042
|
|
|
|
(603,175
|
)
|
|
|
|
|
|
|
933,867
|
|
Structures
|
|
|
737,494
|
|
|
|
(384,705
|
)
|
|
|
|
|
|
|
352,789
|
|
Machinery
|
|
|
27,088,067
|
|
|
|
(19,775,784
|
)
|
|
|
(1,468
|
)
|
|
|
7,310,815
|
|
Other
|
|
|
1,461,201
|
|
|
|
(960,450
|
)
|
|
|
(1,701
|
)
|
|
|
499,050
|
|
Construction in progress
|
|
|
704,400
|
|
|
|
|
|
|
|
|
|
|
|
704,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
32,294,984
|
|
|
|
(21,724,114
|
)
|
|
|
(3,169
|
)
|
|
|
10,567,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
13.
|
Property and Equipment, Continued
|
|
(2)
|
Changes in property and equipment for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Impairment
|
|
|
Business
combination
|
|
|
Change of
consolidation
scope
|
|
|
Ending
balance
|
|
Land
|
|
W
|
766,780
|
|
|
|
6,629
|
|
|
|
(2,031
|
)
|
|
|
41,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
812,947
|
|
Buildings
|
|
|
933,867
|
|
|
|
6,042
|
|
|
|
(6,839
|
)
|
|
|
27,500
|
|
|
|
(49,441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
911,129
|
|
Structures
|
|
|
352,789
|
|
|
|
9,776
|
|
|
|
(57
|
)
|
|
|
16,104
|
|
|
|
(34,391
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
344,221
|
|
Machinery
|
|
|
7,310,815
|
|
|
|
645,986
|
|
|
|
(22,518
|
)
|
|
|
1,538,235
|
|
|
|
(2,133,193
|
)
|
|
|
(524
|
)
|
|
|
3,208
|
|
|
|
|
|
|
|
7,342,009
|
|
Other
|
|
|
499,050
|
|
|
|
786,531
|
|
|
|
(16,721
|
)
|
|
|
(652,022
|
)
|
|
|
(143,288
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
(108
|
)
|
|
|
473,438
|
|
Construction in progress
|
|
|
704,400
|
|
|
|
1,063,169
|
|
|
|
(1,522
|
)
|
|
|
(1,271,762
|
)
|
|
|
|
|
|
|
(6,773
|
)
|
|
|
|
|
|
|
|
|
|
|
487,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,567,701
|
|
|
|
2,518,133
|
|
|
|
(49,688
|
)
|
|
|
(300,376
|
)
|
|
|
(2,360,313
|
)
|
|
|
(7,301
|
)
|
|
|
3,208
|
|
|
|
(108
|
)
|
|
|
10,371,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Impairment
|
|
|
Classified as
held for sale
|
|
|
Change of
consolidation
scope
|
|
|
Ending
balance
|
|
Land
|
|
W
|
732,206
|
|
|
|
8,306
|
|
|
|
(12
|
)
|
|
|
24,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,102
|
|
|
|
766,780
|
|
Buildings
|
|
|
956,691
|
|
|
|
5,862
|
|
|
|
(451
|
)
|
|
|
16,885
|
|
|
|
(48,745
|
)
|
|
|
|
|
|
|
|
|
|
|
3,625
|
|
|
|
933,867
|
|
Structures
|
|
|
364,951
|
|
|
|
8,909
|
|
|
|
(39
|
)
|
|
|
11,919
|
|
|
|
(32,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
352,789
|
|
Machinery
|
|
|
6,847,059
|
|
|
|
572,764
|
|
|
|
(28,101
|
)
|
|
|
1,979,590
|
|
|
|
(2,065,368
|
)
|
|
|
(2,879
|
)
|
|
|
(6
|
)
|
|
|
7,756
|
|
|
|
7,310,815
|
|
Other
|
|
|
533,181
|
|
|
|
1,124,067
|
|
|
|
(6,188
|
)
|
|
|
(1,022,999
|
)
|
|
|
(135,213
|
)
|
|
|
(49
|
)
|
|
|
(245
|
)
|
|
|
6,496
|
|
|
|
499,050
|
|
Construction in progress
|
|
|
762,519
|
|
|
|
1,101,691
|
|
|
|
(11,277
|
)
|
|
|
(1,147,666
|
)
|
|
|
|
|
|
|
(691
|
)
|
|
|
(176
|
)
|
|
|
|
|
|
|
704,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,196,607
|
|
|
|
2,821,599
|
|
|
|
(46,068
|
)
|
|
|
(138,093
|
)
|
|
|
(2,282,277
|
)
|
|
|
(3,619
|
)
|
|
|
(427
|
)
|
|
|
19,979
|
|
|
|
10,567,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
(1)
|
Investment property as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Carrying
amount
|
|
Land
|
|
W
|
10,634
|
|
|
|
|
|
|
|
10,634
|
|
Buildings
|
|
|
7,531
|
|
|
|
(3,094
|
)
|
|
|
4,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
18,165
|
|
|
|
(3,094
|
)
|
|
|
15,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Carrying
amount
|
|
Land
|
|
W
|
10,418
|
|
|
|
|
|
|
|
10,418
|
|
Buildings
|
|
|
7,379
|
|
|
|
(2,800
|
)
|
|
|
4,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
17,797
|
|
|
|
(2,800
|
)
|
|
|
14,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Changes in investment property for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
Beginning balance
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending balance
|
|
Land
|
|
W
|
10,418
|
|
|
|
216
|
|
|
|
|
|
|
|
10,634
|
|
Buildings
|
|
|
4,579
|
|
|
|
98
|
|
|
|
(240
|
)
|
|
|
4,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
14,997
|
|
|
|
314
|
|
|
|
(240
|
)
|
|
|
15,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
Beginning balance
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending balance
|
|
Land
|
|
W
|
10,822
|
|
|
|
(404
|
)
|
|
|
|
|
|
|
10,418
|
|
Buildings
|
|
|
4,989
|
|
|
|
(172
|
)
|
|
|
(238
|
)
|
|
|
4,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,811
|
|
|
|
(576
|
)
|
|
|
(238
|
)
|
|
|
14,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Fair value of investment property as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Carrying
amount
|
|
|
Fair value
|
|
|
Carrying
amount
|
|
|
Fair value
|
|
Land
|
|
W
|
10,634
|
|
|
|
6,009
|
|
|
|
10,418
|
|
|
|
6,056
|
|
Buildings
|
|
|
4,437
|
|
|
|
4,261
|
|
|
|
4,579
|
|
|
|
4,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,071
|
|
|
|
10,270
|
|
|
|
14,997
|
|
|
|
10,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of investment property was appraised on the basis of market price by an independent appraisal
company.
56
14.
|
Investment Property, Continued
|
|
(4)
|
Income (expense) from investment property for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Rent revenue
|
|
W
|
850
|
|
|
|
896
|
|
Operating expense
|
|
|
(240
|
)
|
|
|
(239
|
)
|
|
(1)
|
Goodwill as of December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Goodwill related to acquisition of Shinsegi Telecom, Inc.
|
|
W
|
1,306,236
|
|
|
|
1,306,236
|
|
Goodwill related to acquisition of SK Broadband Co., Ltd.
|
|
|
358,443
|
|
|
|
358,443
|
|
Other goodwill
|
|
|
243,911
|
|
|
|
252,916
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,908,590
|
|
|
|
1,917,595
|
|
|
|
|
|
|
|
|
|
|
Goodwill is allocated to the following CGUs for the purpose of impairment testing.
|
|
|
Shinsegi Telecom, Inc.(*1): cellular services
|
|
|
|
SK Broadband Co., Ltd.(*2): fixed-line telecommunication services
|
(*1)
|
Shinsegi Telecom, Inc.
|
The recoverable amount of the CGU is based on its value in use
calculated by applying the annual discount rate of 4.9% to the estimated future cash flows based on financial budgets for the next five years. An annual growth rate of 0.62% was applied for the cash flows expected to be incurred after five years and
is not expected to exceed the Groups 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 5.3% to the estimated future cash flows based on financial budgets for the next five years. An annual growth rate of 1.0%, the Groups long-term fixed-line
telecommunication business growth rate, was applied for the cash flows expected to be incurred after five years. 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.
57
|
(2)
|
Details of changes in goodwill for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Beginning balance
|
|
W
|
1,917,595
|
|
|
|
1,733,261
|
|
Increase due to business acquisition
|
|
|
1,758
|
|
|
|
193,202
|
|
Impairment loss
|
|
|
(19,245
|
)
|
|
|
(8,868
|
)
|
Other
|
|
|
8,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,908,590
|
|
|
|
1,917,595
|
|
|
|
|
|
|
|
|
|
|
Accumulated impairment losses as of December 31, 2015 and 2014 are
W
36,119 million and
W
18,849 million, respectively.
|
(1)
|
Intangible assets as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Acquisition
cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment
|
|
|
Carrying
amount
|
|
Frequency use rights
|
|
W
|
3,033,879
|
|
|
|
(1,930,362
|
)
|
|
|
|
|
|
|
1,103,517
|
|
Land use rights
|
|
|
74,217
|
|
|
|
(47,641
|
)
|
|
|
|
|
|
|
26,576
|
|
Industrial rights
|
|
|
159,926
|
|
|
|
(43,384
|
)
|
|
|
|
|
|
|
116,542
|
|
Development costs
|
|
|
140,226
|
|
|
|
(132,754
|
)
|
|
|
|
|
|
|
7,472
|
|
Facility usage rights
|
|
|
149,841
|
|
|
|
(101,822
|
)
|
|
|
|
|
|
|
48,019
|
|
Customer relations
|
|
|
16,528
|
|
|
|
(9,353
|
)
|
|
|
|
|
|
|
7,175
|
|
Memberships(*1)
|
|
|
126,622
|
|
|
|
|
|
|
|
(35,115
|
)
|
|
|
91,507
|
|
Other(*2)
|
|
|
3,101,622
|
|
|
|
(2,197,646
|
)
|
|
|
|
|
|
|
903,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,802,861
|
|
|
|
(4,462,962
|
)
|
|
|
(35,115
|
)
|
|
|
2,304,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Acquisition
cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment
|
|
|
Carrying
amount
|
|
Frequency use rights
|
|
W
|
3,033,879
|
|
|
|
(1,649,835
|
)
|
|
|
|
|
|
|
1,384,044
|
|
Land use rights
|
|
|
64,136
|
|
|
|
(38,783
|
)
|
|
|
|
|
|
|
25,353
|
|
Industrial rights
|
|
|
144,497
|
|
|
|
(36,737
|
)
|
|
|
|
|
|
|
107,760
|
|
Development costs
|
|
|
162,493
|
|
|
|
(144,215
|
)
|
|
|
(9,947
|
)
|
|
|
8,331
|
|
Facility usage rights
|
|
|
146,112
|
|
|
|
(93,476
|
)
|
|
|
|
|
|
|
52,636
|
|
Customer relations
|
|
|
17,147
|
|
|
|
(10,743
|
)
|
|
|
|
|
|
|
6,404
|
|
Memberships(*1)
|
|
|
128,274
|
|
|
|
|
|
|
|
(34,155
|
)
|
|
|
94,119
|
|
Other(*2)
|
|
|
3,029,590
|
|
|
|
(2,223,627
|
)
|
|
|
(616
|
)
|
|
|
805,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,726,128
|
|
|
|
(4,197,416
|
)
|
|
|
(44,718
|
)
|
|
|
2,483,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58
16.
|
Intangible Assets, Continued
|
|
(1)
|
Intangible assets as of December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
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 to a university, and the Group is given rights-to-use for a definite number of
years in turn.
|
|
(2)
|
Details of changes in intangible assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Impairment(*)
|
|
|
Business
combination
|
|
|
Change of
consolidation
scope
|
|
|
Ending
balance
|
|
Frequency use rights
|
|
W
|
1,384,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(280,527
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,103,517
|
|
Land use rights
|
|
|
25,353
|
|
|
|
11,956
|
|
|
|
(1,314
|
)
|
|
|
|
|
|
|
(9,419
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,576
|
|
Industrial rights
|
|
|
107,760
|
|
|
|
5,878
|
|
|
|
(22
|
)
|
|
|
8,935
|
|
|
|
(6,009
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116,542
|
|
Development costs
|
|
|
8,331
|
|
|
|
3,737
|
|
|
|
|
|
|
|
23
|
|
|
|
(4,563
|
)
|
|
|
(56
|
)
|
|
|
|
|
|
|
|
|
|
|
7,472
|
|
Facility usage rights
|
|
|
52,636
|
|
|
|
2,721
|
|
|
|
(23
|
)
|
|
|
1,177
|
|
|
|
(8,492
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,019
|
|
Customer relations
|
|
|
6,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,689
|
)
|
|
|
|
|
|
|
8,486
|
|
|
|
(3,026
|
)
|
|
|
7,175
|
|
Memberships
|
|
|
94,119
|
|
|
|
1,137
|
|
|
|
(1,802
|
)
|
|
|
68
|
|
|
|
|
|
|
|
(2,015
|
)
|
|
|
|
|
|
|
|
|
|
|
91,507
|
|
Other
|
|
|
805,347
|
|
|
|
103,137
|
|
|
|
(1,772
|
)
|
|
|
323,933
|
|
|
|
(319,234
|
)
|
|
|
(7,228
|
)
|
|
|
|
|
|
|
(207
|
)
|
|
|
903,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,483,994
|
|
|
|
128,566
|
|
|
|
(4,933
|
)
|
|
|
334,136
|
|
|
|
(632,933
|
)
|
|
|
(9,299
|
)
|
|
|
8,486
|
|
|
|
(3,233
|
)
|
|
|
2,304,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Group recognized the difference between recoverable amount and the carrying amount of memberships, computer software and development costs, amounting to
W
9,299 million as impairment loss during for
the year ended December 31, 2015.
|
59
16.
|
Intangible Assets, Continued
|
|
(2)
|
Details of changes in intangible assets for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Impairment
|
|
|
Change of
consolidation
scope
|
|
|
Ending
balance
|
|
Frequency use rights
|
|
W
|
1,664,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(280,527
|
)
|
|
|
|
|
|
|
|
|
|
|
1,384,044
|
|
Land use rights
|
|
|
16,590
|
|
|
|
15,560
|
|
|
|
(573
|
)
|
|
|
|
|
|
|
(8,483
|
)
|
|
|
|
|
|
|
2,259
|
|
|
|
25,353
|
|
Industrial rights
|
|
|
58,763
|
|
|
|
5,048
|
|
|
|
(180
|
)
|
|
|
|
|
|
|
(4,584
|
)
|
|
|
|
|
|
|
48,713
|
|
|
|
107,760
|
|
Development costs
|
|
|
10,127
|
|
|
|
1,253
|
|
|
|
(25
|
)
|
|
|
63
|
|
|
|
(4,048
|
)
|
|
|
(398
|
)
|
|
|
1,359
|
|
|
|
8,331
|
|
Facility usage rights
|
|
|
58,828
|
|
|
|
1,890
|
|
|
|
(30
|
)
|
|
|
382
|
|
|
|
(8,434
|
)
|
|
|
|
|
|
|
|
|
|
|
52,636
|
|
Customer relations
|
|
|
6,333
|
|
|
|
779
|
|
|
|
|
|
|
|
(39
|
)
|
|
|
(3,063
|
)
|
|
|
|
|
|
|
2,394
|
|
|
|
6,404
|
|
Memberships (*)
|
|
|
128,452
|
|
|
|
5,629
|
|
|
|
(5,810
|
)
|
|
|
(264
|
)
|
|
|
|
|
|
|
(34,155
|
)
|
|
|
267
|
|
|
|
94,119
|
|
Other
|
|
|
807,118
|
|
|
|
102,322
|
|
|
|
(9,919
|
)
|
|
|
171,858
|
|
|
|
(300,216
|
)
|
|
|
(449
|
)
|
|
|
34,633
|
|
|
|
805,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,750,782
|
|
|
|
132,481
|
|
|
|
(16,537
|
)
|
|
|
172,000
|
|
|
|
(609,355
|
)
|
|
|
(35,002
|
)
|
|
|
89,625
|
|
|
|
2,483,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Group recognized the difference between recoverable amount and the carrying amount of memberships, amounting to
W
34,155 million as impairment loss for the year ended December 31, 2014.
|
|
(3)
|
Research and development expenditures recognized as expense for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Research and development costs expensed as incurred
|
|
W
|
315,790
|
|
|
|
390,943
|
|
|
(4)
|
The carrying amount and residual useful lives of frequency usage rights as of the year ended December 31, 2015 are as follows, all of which are depreciated on a straight-line basis:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
Amount
|
|
|
Description
|
|
Commencement of
depreciation
|
|
Completion of
depreciation
|
W-CDMA license
|
|
W
|
102,839
|
|
|
Frequency use rights relating to W-CDMA service
|
|
Dec. 2003
|
|
Dec. 2016
|
W-CDMA license
|
|
|
16,311
|
|
|
Frequency use rights relating to W-CDMA service
|
|
Oct. 2010
|
|
Dec. 2016
|
800MHz license
|
|
|
222,992
|
|
|
Frequency use rights relating to CDMA and LTE service
|
|
Jul. 2011
|
|
Jun. 2021
|
1.8GHz license
|
|
|
753,720
|
|
|
Frequency use rights relating to LTE service
|
|
Sep. 2013
|
|
Dec. 2021
|
WiBro license
|
|
|
7,655
|
|
|
WiBro service
|
|
Mar. 2012
|
|
Mar. 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,103,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
17.
|
Borrowings and Debentures
|
|
(1)
|
Short-term borrowings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual
interest
rate (%)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Commercial Paper
|
|
KTB Investment and Securities Co., Ltd., etc.
|
|
1.76~1.84
|
|
W
|
220,000
|
|
|
|
206,000
|
|
Short-term borrowings
|
|
Kookmin Bank, etc.
|
|
2.47
|
|
|
40,000
|
|
|
|
160,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
260,000
|
|
|
|
366,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Long-term borrowings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars)
|
|
Lender
|
|
Annual interest
rate (%)
|
|
Maturity
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Shinhan Bank
|
|
2.39
|
|
Jun. 15, 2015
|
|
W
|
|
|
|
|
1,712
|
|
Kookmin Bank
|
|
1.98
|
|
Jun. 15, 2016
|
|
|
1,625
|
|
|
|
4,874
|
|
Kookmin Bank
|
|
1.98
|
|
Mar. 15, 2017
|
|
|
2,498
|
|
|
|
4,496
|
|
Kookmin Bank
|
|
1.98
|
|
Mar. 15, 2018
|
|
|
6,450
|
|
|
|
8,600
|
|
Shinhan Bank(*1)
|
|
6M bank debenture
rate+1.58
|
|
Apr. 30, 2016
|
|
|
10,000
|
|
|
|
10,000
|
|
Korea Finance Corporation
|
|
3.32
|
|
Jul. 30 ,2019
|
|
|
39,000
|
|
|
|
39,000
|
|
Korea Finance Corporation
|
|
2.94
|
|
Jul. 30 ,2019
|
|
|
10,000
|
|
|
|
10,000
|
|
Export Kreditnamnden(*2)
|
|
1.7
|
|
Apr. 29, 2022
|
|
|
87,685
|
|
|
|
94,903
|
|
|
|
|
|
|
|
(USD
|
74,817
|
)
|
|
(USD
|
86,338
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
157,258
|
|
|
|
173,585
|
|
Less present value discount on long-term borrowings
|
|
|
(2,124
|
)
|
|
|
(2,623
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
155,134
|
|
|
|
170,962
|
|
Less current portion of long-term borrowings
|
|
|
(33,581
|
)
|
|
|
(21,242
|
)
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
W
|
121,553
|
|
|
|
149,720
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
As of December 31, 2015, the 6M bank debenture rate of Shinhan Bank is 1.69%.
|
(*2)
|
For the years ended December 31, 2014 and 2013, the Group obtained long-term borrowings from Export Kreditnamnden, an export credit agency. The long-term borrowings are redeemed by installment on an annual basis from
2014 to 2022.
|
(*3)
|
Convenient translation was provided for the borrowings repayable in other currencies.
|
61
17.
|
Borrowings and Debentures, Continued
|
|
(3)
|
Debentures as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars and thousands of other currencies)
|
|
|
|
Purpose
|
|
Maturity
|
|
Annual interest
rate (%)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2016
|
|
5.00
|
|
|
200,000
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
Other fund
|
|
2015
|
|
5.00
|
|
|
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
|
|
2018
|
|
5.00
|
|
|
200,000
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.54
|
|
|
40,000
|
|
|
|
40,000
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.92
|
|
|
230,000
|
|
|
|
230,000
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2016
|
|
3.95
|
|
|
110,000
|
|
|
|
110,000
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
4.22
|
|
|
190,000
|
|
|
|
190,000
|
|
Unsecured private bonds
|
|
Operating and refinancing fund
|
|
2019
|
|
3.24
|
|
|
170,000
|
|
|
|
170,000
|
|
Unsecured private bonds
|
|
|
|
2022
|
|
3.30
|
|
|
140,000
|
|
|
|
140,000
|
|
Unsecured private bonds
|
|
|
|
2032
|
|
3.45
|
|
|
90,000
|
|
|
|
90,000
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2023
|
|
3.03
|
|
|
230,000
|
|
|
|
230,000
|
|
Unsecured private bonds
|
|
|
|
2033
|
|
3.22
|
|
|
130,000
|
|
|
|
130,000
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
3.30
|
|
|
50,000
|
|
|
|
50,000
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
3.64
|
|
|
150,000
|
|
|
|
150,000
|
|
Unsecured private bonds(*5,6)
|
|
|
|
2029
|
|
4.73
|
|
|
|
|
|
|
55,188
|
|
Unsecured private bonds(*5)
|
|
|
|
2029
|
|
4.72
|
|
|
54,695
|
|
|
|
55,177
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2019
|
|
2.53
|
|
|
160,000
|
|
|
|
160,000
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
2.66
|
|
|
150,000
|
|
|
|
150,000
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
2.82
|
|
|
190,000
|
|
|
|
190,000
|
|
Unsecured private bonds
|
|
Operating and refinancing fund
|
|
2022
|
|
2.40
|
|
|
100,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.49
|
|
|
150,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.61
|
|
|
50,000
|
|
|
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2018
|
|
1.89
|
|
|
90,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.66
|
|
|
70,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.82
|
|
|
90,000
|
|
|
|
|
|
Unsecured private bonds(*5)
|
|
|
|
2030
|
|
3.40
|
|
|
50,485
|
|
|
|
|
|
Unsecured private bonds
|
|
Operating and
|
|
2018
|
|
2.07
|
|
|
80,000
|
|
|
|
|
|
Unsecured private bonds
|
|
refinancing fund
|
|
2025
|
|
2.55
|
|
|
100,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2035
|
|
2.75
|
|
|
70,000
|
|
|
|
|
|
Unsecured private bonds(*5)
|
|
|
|
2030
|
|
3.10
|
|
|
50,524
|
|
|
|
|
|
Unsecured private bonds(*1)
|
|
Operating fund
|
|
2015
|
|
4.62
|
|
|
|
|
|
|
10,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2015
|
|
4.09
|
|
|
|
|
|
|
110,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2015
|
|
4.14
|
|
|
|
|
|
|
110,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2017
|
|
4.28
|
|
|
100,000
|
|
|
|
100,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2015
|
|
3.14
|
|
|
|
|
|
|
130,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2017
|
|
3.27
|
|
|
120,000
|
|
|
|
120,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2016
|
|
3.05
|
|
|
80,000
|
|
|
|
80,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2019
|
|
3.49
|
|
|
210,000
|
|
|
|
210,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2019
|
|
2.76
|
|
|
130,000
|
|
|
|
130,000
|
|
Unsecured private bonds(*2)
|
|
|
|
2018
|
|
2.23
|
|
|
50,000
|
|
|
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2020
|
|
2.49
|
|
|
160,000
|
|
|
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2020
|
|
2.43
|
|
|
140,000
|
|
|
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2020
|
|
2.18
|
|
|
130,000
|
|
|
|
|
|
Unsecured private bonds(*3)
|
|
|
|
2015
|
|
3.12
|
|
|
|
|
|
|
10,000
|
|
Unsecured private bonds(*3)
|
|
|
|
2016
|
|
3.24
|
|
|
10,000
|
|
|
|
10,000
|
|
Unsecured private bonds(*3)
|
|
|
|
2017
|
|
3.48
|
|
|
20,000
|
|
|
|
20,000
|
|
Foreign global bonds
|
|
|
|
2027
|
|
6.63
|
|
(USD
|
468,800
400,000
|
)
|
|
(USD
|
439,680
400,000
|
)
|
Swiss unsecured private bonds
|
|
|
|
2017
|
|
1.75
|
|
(CHF
|
355,617
300,000
|
)
|
|
(CHF
|
333,429
300,000
|
)
|
62
17.
|
Borrowings and Debentures, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars and thousands of other currencies)
|
|
|
|
Purpose
|
|
Maturity
|
|
Annual interest
rate (%)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Foreign global bonds
|
|
Operating fund
|
|
2018
|
|
2.13
|
|
|
820,400
(USD 700,000
|
)
|
|
|
769,440
(USD 700,000
|
)
|
Australia unsecured private bonds
|
|
|
|
2017
|
|
4.75
|
|
|
255,930
(AUD 300,000
|
)
|
|
|
269,727
(AUD 300,000
|
)
|
Floating rate notes(*4)
|
|
|
|
2020
|
|
3M Libor + 0.88
|
|
|
351,600
(USD 300,000
|
)
|
|
|
329,760
(USD 300,000
|
)
|
Foreign global bonds(*2)
|
|
|
|
2018
|
|
2.88
|
|
|
351,600
(USD 300,000
|
)
|
|
|
329,760
(USD 300,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
7,139,651
|
|
|
|
6,252,161
|
|
Less discounts on bonds
|
|
|
|
|
|
|
|
|
(30,998
|
)
|
|
|
(33,531
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,108,653
|
|
|
|
6,218,630
|
|
Less current portion of bonds
|
|
|
|
|
|
|
|
|
(669,506
|
)
|
|
|
(569,472
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,439,147
|
|
|
|
5,649,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Unsecured private bonds were issued by SK Telink Co., Ltd., a subsidiary of the Parent Company.
|
(*2)
|
Unsecured private bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.
|
(*3)
|
Unsecured private bonds were issued by PS&Marketing Corporation, a subsidiary of the Parent Company.
|
(*4)
|
As of December 31, 2015, 3M Libor rate is 0.61%.
|
(*5)
|
The Group settled the difference of the measurement bases 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 difference between the carrying amount of the designated financial liabilities at fair value through profit or
loss and the amount required to pay at maturity is
W
5,704 million as of December 31, 2015.
(*6)
|
As of December 31, 2014, the principal amount and the fair value of the structured bonds were
W
50,000 million and
W
55,188 million, respectively. The
entire bonds were early redeemed during the year ended December 31, 2015.
|
(*7)
|
Convenient translation was provided for the bonds repayable in other currencies.
|
63
18.
|
Long-term Payables - Other
|
|
(1)
|
Long-term payables other as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Payables related to acquisition of W-CDMA licenses
|
|
W
|
550,964
|
|
|
|
657,001
|
|
Other(*)
|
|
|
30,733
|
|
|
|
27,566
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
581,697
|
|
|
|
684,567
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Other includes vested compensation claims of employees who have rendered long-term service, etc.
|
|
(2)
|
As of December 31, 2015 and 2014, long-term payables other consist of payables related to the acquisition of W-CDMA licenses for 800MHZ, 2.3GHz and 1.8GHz frequencies as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Period of
repayment
|
|
Coupon
rate
|
|
Annual effective interest
rate(*)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
800MHz
|
|
2013~2015
|
|
3.51%
|
|
5.69%
|
|
|
|
|
|
|
69,416
|
|
2.3GHz
|
|
2014~2016
|
|
3.00%
|
|
5.80%
|
|
|
2,882
|
|
|
|
5,766
|
|
1.8GHz
|
|
2012~2021
|
|
2.43~3.00%
|
|
4.84~5.25%
|
|
|
707,006
|
|
|
|
824,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
709,888
|
|
|
|
900,023
|
|
Present value discount on long-term payables - other
|
|
|
|
|
|
|
|
|
(38,739
|
)
|
|
|
(53,633
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
671,149
|
|
|
|
846,390
|
|
Current portion of long-term payables other
|
|
|
|
|
|
|
|
|
(120,185
|
)
|
|
|
(189,389
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount at December 31
|
|
|
|
|
|
|
|
W
|
550,964
|
|
|
|
657,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Group estimated the discount rate based on its credit ratings and corporate bond yield rate as there is no market interest rate available for long-term account payables-other.
|
|
(3)
|
The repayment schedule of long-term payables other related to acquisition of W-CDMA licenses as of December 31, 2015 is as follows:
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
Amount
|
|
Less than 1 year
|
|
W
|
120,718
|
|
1~3 years
|
|
|
235,669
|
|
3~5 years
|
|
|
235,669
|
|
More than 5 years
|
|
|
117,832
|
|
|
|
|
|
|
|
|
W
|
709,888
|
|
|
|
|
|
|
64
|
(1)
|
Changes in provisions for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2015
|
|
|
As of December 31, 2015
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Other
|
|
|
Change of
consolidation
scope
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-current
|
|
Provision for handset subsidy (*1)
|
|
W
|
26,799
|
|
|
|
1,641
|
|
|
|
(5,004
|
)
|
|
|
(17,766
|
)
|
|
|
|
|
|
|
|
|
|
|
5,670
|
|
|
|
2,232
|
|
|
|
3,438
|
|
Provision for restoration
|
|
|
59,727
|
|
|
|
4,983
|
|
|
|
(1,135
|
)
|
|
|
(5,433
|
)
|
|
|
1,812
|
|
|
|
|
|
|
|
59,954
|
|
|
|
34,336
|
|
|
|
25,618
|
|
Emission allowance (*2)
|
|
|
|
|
|
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,477
|
|
|
|
1,477
|
|
|
|
|
|
Other provisions
|
|
|
562
|
|
|
|
3,795
|
|
|
|
(510
|
)
|
|
|
(472
|
)
|
|
|
|
|
|
|
(271
|
)
|
|
|
3,104
|
|
|
|
2,943
|
|
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
87,088
|
|
|
|
11,896
|
|
|
|
(6,649
|
)
|
|
|
(23,671
|
)
|
|
|
1,812
|
|
|
|
(217
|
)
|
|
|
70,205
|
|
|
|
40,988
|
|
|
|
29,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2014
|
|
|
As of December 31, 2014
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Other
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-current
|
|
Provision for handset subsidy (*1)
|
|
W
|
53,923
|
|
|
|
41,802
|
|
|
|
(68,926
|
)
|
|
|
|
|
|
|
|
|
|
|
26,799
|
|
|
|
14,844
|
|
|
|
11,955
|
|
Provision for restoration
|
|
|
40,507
|
|
|
|
20,098
|
|
|
|
(702
|
)
|
|
|
(34
|
)
|
|
|
(142
|
)
|
|
|
59,727
|
|
|
|
35,865
|
|
|
|
23,862
|
|
Other provisions
|
|
|
451
|
|
|
|
155
|
|
|
|
(225
|
)
|
|
|
|
|
|
|
181
|
|
|
|
562
|
|
|
|
366
|
|
|
|
196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
94,881
|
|
|
|
62,055
|
|
|
|
(69,853
|
)
|
|
|
(34
|
)
|
|
|
39
|
|
|
|
87,088
|
|
|
|
51,075
|
|
|
|
36,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
The Group has provided handset subsidy to subscribers who purchase handsets on an installment basis and recognized provision for subsidy amounts which the Group is expected to pay in future periods.
|
(*2)
|
The Group recognizes estimated future payment for the number of emission certificates required to settle the Groups 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.
|
65
The Group has leased telecommunication equipment under finance lease agreements
with Cisco Systems Capital Korea Ltd. Finance lease liabilities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Finance Lease Liabilities
|
|
|
|
|
|
|
|
|
Current portion of long-term finance lease liabilities
|
|
W
|
26
|
|
|
|
3,804
|
|
Long-term finance lease liabilities
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
26
|
|
|
|
3,830
|
|
|
|
|
|
|
|
|
|
|
The Groups related interest and principal as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Minimum
lease
payment
|
|
|
Present
value
|
|
|
Minimum
lease
payment
|
|
|
Present
value
|
|
Less than 1 year
|
|
W
|
26
|
|
|
|
26
|
|
|
|
3,909
|
|
|
|
3,804
|
|
1~5 years
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
26
|
|
|
|
26
|
|
|
|
3,935
|
|
|
|
3,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term finance lease liabilities
|
|
|
|
|
|
|
(26
|
)
|
|
|
|
|
|
|
(3,804
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term finance lease liabilities
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
The Group entered into operating leases and sublease agreements in relation
to rented office space and the expected future lease payments and lease revenues as of December 31, 2015 and 2014 (included in other non-operating income in the accompanying consolidated statements of income) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
Lease
payments
|
|
|
Lease
revenues
|
|
|
Lease
payments
|
|
|
Lease
revenues
|
|
Less than 1 year
|
|
W
|
32,416
|
|
|
|
1,876
|
|
|
|
29,233
|
|
|
|
3,496
|
|
1~5 years
|
|
|
75,568
|
|
|
|
1,026
|
|
|
|
76,306
|
|
|
|
1,390
|
|
More than 5 years
|
|
|
33,602
|
|
|
|
577
|
|
|
|
49,582
|
|
|
|
1,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
141,586
|
|
|
|
3,479
|
|
|
|
155,121
|
|
|
|
5,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Sale and Leaseback Transaction
|
During the year ended December 31, 2012, the Group disposed a
portion of its property and equipment and investment property, and entered into lease agreements with respect to those assets. This sale and leaseback transaction is considered as an operating lease. The Group recognized
W
14,539 million and
W
14,075 million of lease payments in relation to the operating lease agreement for the years ended December 31, 2015 and 2014, respectively, and
W
2,393 million and
W
2,469 million of lease revenues in relation to the sublease agreement for the years ended December 31, 2015 and 2014, respectively. Expected future lease
payments and lease revenues are included in Note 20-(2).
67
21.
|
Defined Benefit Liabilities
|
|
(1)
|
Details of defined benefit liabilities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Present value of defined benefit obligations
|
|
W
|
525,269
|
|
|
|
437,844
|
|
Fair value of plan assets
|
|
|
(426,413
|
)
|
|
|
(346,257
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
98,856
|
|
|
|
91,587
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Principal actuarial assumptions as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
Discount rate for defined benefit obligations
|
|
1.90%~2.93%
|
|
2.23% ~ 3.70%
|
Expected rate of salary increase
|
|
2.51%~7.04%
|
|
2.51% ~ 7.39%
|
Discount rate for defined benefit obligation is determined based on the Groups credit ratings and yield
rate of corporate bonds with similar maturities for estimated payment term of defined benefit obligation. Expected rate of salary increase is determined based on the Groups historical promotion index, inflation rate and salary increase ratio
in accordance with salary agreement.
|
(3)
|
Changes in defined benefit obligations for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the year ended December 31
|
|
|
|
2015
|
|
|
2014
|
|
Beginning balance
|
|
W
|
437,844
|
|
|
|
312,494
|
|
Current service cost
|
|
|
106,764
|
|
|
|
109,625
|
|
Interest cost
|
|
|
12,292
|
|
|
|
12,630
|
|
Remeasurement
|
|
|
|
|
|
|
|
|
- Demographic assumption
|
|
|
732
|
|
|
|
2,859
|
|
- Financial assumption
|
|
|
5,900
|
|
|
|
28,287
|
|
- Adjustment based on experience
|
|
|
15,100
|
|
|
|
9,932
|
|
Benefit paid
|
|
|
(58,513
|
)
|
|
|
(46,531
|
)
|
Others(*)
|
|
|
5,150
|
|
|
|
8,548
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
525,269
|
|
|
|
437,844
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Others for the year ended December 31, 2015 include liabilities of
W
3,470 million succeeded due to transfer of employees from associates and transfer to construction in progress, etc.
Others for the year ended December 31, 2014 include the effect of changes in the consolidation scope of
W
2,939 million, liabilities of
W
4,433 million succeeded due to transfer of
employees from associates, and transfer to construction in progress, etc.
|
68
21.
|
Defined Benefit Liabilities, Continued
|
|
(4)
|
Changes in plan assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Beginning balance
|
|
W
|
346,257
|
|
|
|
238,293
|
|
Interest income
|
|
|
9,035
|
|
|
|
9,538
|
|
Actuarial gain
|
|
|
3,146
|
|
|
|
50
|
|
Contributions by employer directly to plan assets
|
|
|
115,640
|
|
|
|
117,558
|
|
Benefits paid
|
|
|
(47,809
|
)
|
|
|
(20,711
|
)
|
Others(*)
|
|
|
144
|
|
|
|
1,529
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
426,413
|
|
|
|
346,257
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Others for the year ended December 31, 2014 include the effect of changes in the consolidation scope of
W
1,221 million.
|
The Group expects to make a contribution of
W
82,220 million to the defined benefit plans during the next
financial year.
|
(5)
|
Expenses recognized in profit and loss (included in labor cost in the accompanying consolidated statements of income) and capitalized into construction-in-progress for the years ended December 31, 2015 and 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Current service cost
|
|
W
|
106,764
|
|
|
|
109,625
|
|
Net interest cost
|
|
|
3,257
|
|
|
|
3,092
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
110,021
|
|
|
|
112,717
|
|
|
|
|
|
|
|
|
|
|
The above costs are recognized in labor cost, research and development, or capitalized into
construction-in-progress.
|
(6)
|
Details of plan assets as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Equity instruments
|
|
W
|
1,086
|
|
|
|
1,746
|
|
Debt instruments
|
|
|
81,867
|
|
|
|
70,778
|
|
Short-term financial instruments, etc.
|
|
|
343,460
|
|
|
|
273,733
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
426,413
|
|
|
|
346,257
|
|
|
|
|
|
|
|
|
|
|
Actual return on plan assets for the years ended December 31, 2015 and 2014 amounted to
W
12,181 million and
W
9,588 million, respectively.
69
21.
|
Defined Benefit Liabilities, Continued
|
|
(7)
|
As of December 31, 2015, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Decrease
|
|
Discount rate (if changed by 0.5%)
|
|
W
|
(20,669
|
)
|
|
|
22,690
|
|
Expected salary increase rate (if changed by 0.5%)
|
|
|
22,604
|
|
|
|
(20,851
|
)
|
The sensitivity analysis does not consider dispersion of all cashflows that are expected from the plan and
provides approximate values of sensitivity for the assumptions used.
Weighted average durations of defined benefit obligations as of
December 31, 2015 and 2014 are 9.35 years and 9.10 years, respectively.
22.
|
Derivative Instruments
|
|
(1)
|
Currency swap contracts under cash flow hedge accounting as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of foreign currencies)
|
Borrowing
date
|
|
Hedged item
|
|
Hedged risk
|
|
Contract
type
|
|
Financial institution
|
|
Duration of
contract
|
Jul. 20, 2007
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
Morgan Stanley and five other banks
|
|
Jul. 20, 2007 ~
Jul. 20, 2027
|
Jun. 12, 2012
|
|
Fixed-to-fixed cross currency swap (Swiss Franc denominated bonds face value of CHF 300,000)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
Citibank and four other banks
|
|
Jun. 12, 2012 ~
Jun.12, 2017
|
Nov. 1,
2012
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 700,000)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
Barclays and eight other banks
|
|
Nov. 1, 2012 ~
May. 1, 2018
|
Jan. 17,
2013
|
|
Fixed-to-fixed cross currency swap (Australia dollar denominated bonds face value of AUD 300,000)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
BNP Paribas and three other banks
|
|
Jan. 17, 2013 ~
Nov. 17, 2017
|
Mar. 7,
2013
|
|
Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of USD 300,000)
|
|
Foreign currency
risk and the
interest rate risk
|
|
Currency interest rate swap
|
|
DBS bank
|
|
Mar. 7, 2013 ~
Mar. 7, 2020
|
Oct. 29, 2013
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 300,000)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
Korea Development Bank and four other banks
|
|
Oct. 29, 2013 ~
Oct. 26, 2018
|
Dec. 16, 2013
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 74,817)
|
|
Foreign currency
risk
|
|
Currency swap
|
|
Deutsche bank
|
|
Dec. 16, 2013 ~
Apr. 29, 2022
|
70
22.
|
Derivative Instruments, Continued
|
|
(2)
|
As of December 31, 2015, fair values of the above derivatives recorded in assets or liabilities and details of derivative instruments are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of foreign currencies)
|
|
|
|
Fair value
|
|
|
|
Cash flow hedge
|
|
|
|
|
|
|
|
Hedged item
|
|
Accumulated
gain (loss) on
valuation of
derivatives
|
|
|
Tax effect
|
|
|
Accumulated
foreign
currency
translation
(gain) loss
|
|
|
Others
(*)
|
|
|
Held for
trading
purpose
|
|
|
Total
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structured bond (face value of KRW 150,000)
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,277
|
|
|
|
6,277
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000)
|
|
|
(46,616
|
)
|
|
|
(14,883
|
)
|
|
|
11,180
|
|
|
|
129,806
|
|
|
|
|
|
|
|
79,487
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 700,000)
|
|
|
(18,705
|
)
|
|
|
(5,971
|
)
|
|
|
56,738
|
|
|
|
|
|
|
|
|
|
|
|
32,062
|
|
Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of USD 300,000)
|
|
|
(5,748
|
)
|
|
|
(1,835
|
)
|
|
|
26,439
|
|
|
|
|
|
|
|
|
|
|
|
18,856
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 300,000)
|
|
|
(6,394
|
)
|
|
|
|
|
|
|
32,870
|
|
|
|
|
|
|
|
|
|
|
|
26,476
|
|
Fixed-to-fixed long-term borrowings (U.S. dollar denominated bonds face value of USD 74,817)
|
|
|
(4,072
|
)
|
|
|
(1,300
|
)
|
|
|
8,613
|
|
|
|
|
|
|
|
|
|
|
|
3,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
166,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed cross currency swap (Swiss Franc denominated bonds face value of CHF 300,000)
|
|
W
|
(3,678
|
)
|
|
|
(1,174
|
)
|
|
|
(7,851
|
)
|
|
|
|
|
|
|
|
|
|
|
(12,703
|
)
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of AUD 300,000)
|
|
|
2,013
|
|
|
|
642
|
|
|
|
(79,248
|
)
|
|
|
|
|
|
|
|
|
|
|
(76,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(89,296
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Cash flow hedge accounting has been applied to the relevant contracts from May 12, 2010. Others represent gain on valuation of currency swap incurred prior to the application of hedge accounting and was recognized
through profit or loss prior to the year ended December 31, 2013.
|
71
23.
|
Share Capital and Capital Surplus and Other Capital Adjustments
|
The Parent
Companys outstanding share capital consists entirely of common stock with a par value of
W
500. The number of authorized, issued and outstanding common shares and capital surplus and other capital adjustments
as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Authorized shares
|
|
|
220,000,000
|
|
|
|
220,000,000
|
|
Issued shares(*1)
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
Share capital
|
|
|
|
|
|
|
|
|
Common stock
|
|
W
|
44,639
|
|
|
|
44,639
|
|
Capital surplus and other capital adjustments:
|
|
|
|
|
|
|
|
|
Paid-in surplus
|
|
|
2,915,887
|
|
|
|
2,915,887
|
|
Treasury stock(Note 24)
|
|
|
(2,260,626
|
)
|
|
|
(2,139,683
|
)
|
Loss on disposal of treasury stock
|
|
|
|
|
|
|
(18,087
|
)
|
Hybrid bonds(Note 25)
|
|
|
398,518
|
|
|
|
398,518
|
|
Others
|
|
|
(864,269
|
)
|
|
|
(878,637
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
189,510
|
|
|
|
277,998
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
During the years ended December 31, 2003, 2006 and 2009, the Parent Company retired 7,002,235 shares, 1,083,000 shares and 448,000 shares, respectively, of treasury stock which reduced its retained earnings before
appropriation in accordance with the Korean Commercial Act. As a result, the Parent Companys outstanding shares have decreased without change in the share capital.
|
There were no changes in share capital for the years ended December 31, 2015 and 2014. Changes in number of shares outstanding for the years
ended December 31, 2015 and 2014 as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
2015
|
|
|
2014
|
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
Beginning issued shares
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
Disposal of treasury stock
|
|
|
|
|
|
|
(1,692,824
|
)
|
|
|
1,692,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of treasury stock
|
|
|
|
|
|
|
2,020,000
|
|
|
|
(2,020,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending issued shares
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
The Parent Company acquired treasury stock to provide stock dividends,
merge with Shinsegi Telecom, Inc. and SK IMT Co, Ltd., increase shareholder value and to stabilize its stock prices when needed.
Treasury
stock as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Number of shares
|
|
|
10,136,551
|
|
|
|
9,809,375
|
|
Amount
|
|
W
|
2,260,626
|
|
|
|
2,139,683
|
|
On June 9, 2015, the Parent Company granted 1,692,824 shares of its treasury stock (acquisition cost:
W
369,249 million) in order to acquire shares of SK Broadband Co., Ltd. In addition, from September 30, 2015 to December 11, 2015, the Parent Company newly acquired 2,020,000 shares of its treasury stock amounting to
W
490,192 million in order to stabilize stock price.
Hybrid bonds classified as equity as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Type
|
|
Issuance date
|
|
Maturity
|
|
|
Annual
interest
rate(%)
|
|
|
Amount
|
|
Private hybrid bonds
|
|
Blank coupon unguaranteed
subordinated bond
|
|
June 7, 2013
|
|
|
June 7, 2073
|
(*1)
|
|
|
4.21
|
(*2)
|
|
W
|
400,000
|
|
Issuance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
398,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hybrid bonds issued by the Parent Company is 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 shareholders 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 issuance terms 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 adjusted after five years from the issuance date.
|
73
|
(1)
|
Retained earnings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Appropriated:
|
|
|
|
|
|
|
|
|
Legal reserve
|
|
W
|
22,320
|
|
|
|
22,320
|
|
Reserve for research & manpower development
|
|
|
87,301
|
|
|
|
151,533
|
|
Reserve for business expansion
|
|
|
9,671,138
|
|
|
|
9,476,138
|
|
Reserve for technology development
|
|
|
2,616,300
|
|
|
|
2,416,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,397,059
|
|
|
|
12,066,291
|
|
Unappropriated
|
|
|
2,610,568
|
|
|
|
2,122,300
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,007,627
|
|
|
|
14,188,591
|
|
|
|
|
|
|
|
|
|
|
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.
|
(3)
|
Reserve for research & manpower development
|
The reserve for research and manpower
development was appropriated in order to recognize certain tax deductible benefits through the early recognition of future expenditures for tax purposes. These reserves will be reversed from appropriated and retained earnings in accordance with the
relevant tax laws. Such reversal will be included in taxable income in the year of reversal.
|
(1)
|
Details of reserves, net of taxes, as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Unrealized fair value of available-for-sale financial assets
|
|
W
|
232,316
|
|
|
|
235,385
|
|
Other comprehensive income of investments in associates
|
|
|
(169,520
|
)
|
|
|
(163,808
|
)
|
Unrealized fair value of derivatives
|
|
|
(83,200
|
)
|
|
|
(77,531
|
)
|
Foreign currency translation differences for foreign operations
|
|
|
29,707
|
|
|
|
1,465
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,303
|
|
|
|
(4,489
|
)
|
|
|
|
|
|
|
|
|
|
74
|
(2)
|
Changes in reserves for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Unrealized fair
value of
available-for-
sale financial
assets
|
|
|
Other comprehensive
income of
investments in
associates
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Foreign currency
translation
differences for
foreign operations
|
|
|
Total
|
|
Balance at January 1, 2015
|
|
W
|
235,385
|
|
|
|
(163,808
|
)
|
|
|
(77,531
|
)
|
|
|
1,465
|
|
|
|
(4,489
|
)
|
Changes
|
|
|
(5,530
|
)
|
|
|
(5,649
|
)
|
|
|
(5,221
|
)
|
|
|
28,242
|
|
|
|
11,842
|
|
Tax effect
|
|
|
2,461
|
|
|
|
(63
|
)
|
|
|
(448
|
)
|
|
|
|
|
|
|
1,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
232,316
|
|
|
|
(169,520
|
)
|
|
|
(83,200
|
)
|
|
|
29,707
|
|
|
|
9,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Unrealized fair
value of
available-for-
sale financial
assets
|
|
|
Other comprehensive
income of
investments in
associates
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Foreign currency
translation
differences for
foreign operations
|
|
|
Total
|
|
Balance at January 1, 2014
|
|
W
|
208,529
|
|
|
|
(172,117
|
)
|
|
|
(35,429
|
)
|
|
|
(13,253
|
)
|
|
|
(12,270
|
)
|
Changes
|
|
|
30,945
|
|
|
|
8,381
|
|
|
|
(54,290
|
)
|
|
|
14,718
|
|
|
|
(246
|
)
|
Tax effect
|
|
|
(4,089
|
)
|
|
|
(72
|
)
|
|
|
12,188
|
|
|
|
|
|
|
|
8,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
235,385
|
|
|
|
(163,808
|
)
|
|
|
(77,531
|
)
|
|
|
1,465
|
|
|
|
(4,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of changes in unrealized fair value of available-for-sale financial assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2015
|
|
W
|
306,608
|
|
|
|
(71,223
|
)
|
|
|
235,385
|
|
Amount recognized as other comprehensive income during the year
|
|
|
(3,902
|
)
|
|
|
2,067
|
|
|
|
(1,835
|
)
|
Amount reclassified through profit or loss
|
|
|
(1,628
|
)
|
|
|
394
|
|
|
|
(1,234
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
301,078
|
|
|
|
(68,762
|
)
|
|
|
232,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2014
|
|
W
|
275,663
|
|
|
|
(67,134
|
)
|
|
|
208,529
|
|
Amount recognized as other comprehensive income during the year
|
|
|
40,785
|
|
|
|
(6,470
|
)
|
|
|
34,315
|
|
Amount reclassified through profit or loss
|
|
|
(9,840
|
)
|
|
|
2,381
|
|
|
|
(7,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
306,608
|
|
|
|
(71,223
|
)
|
|
|
235,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
|
(4)
|
Details of changes in unrealized fair value of derivatives for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2015
|
|
W
|
(102,501
|
)
|
|
|
24,970
|
|
|
|
(77,531
|
)
|
Amount recognized as other comprehensive income during the year
|
|
|
(4,714
|
)
|
|
|
(570
|
)
|
|
|
(5,284
|
)
|
Amount reclassified through profit or loss
|
|
|
(507
|
)
|
|
|
122
|
|
|
|
(385
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
(107,722
|
)
|
|
|
24,522
|
|
|
|
(83,200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2014
|
|
W
|
(48,211
|
)
|
|
|
12,782
|
|
|
|
(35,429
|
)
|
Amount recognized as other comprehensive income during the year
|
|
|
(46,535
|
)
|
|
|
10,311
|
|
|
|
(36,224
|
)
|
Amount reclassified through profit or loss
|
|
|
(7,755
|
)
|
|
|
1,877
|
|
|
|
(5,878
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
(102,501
|
)
|
|
|
24,970
|
|
|
|
(77,531
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.
|
Other Operating Expenses
|
Details of other operating expenses for the years ended
December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Other Operating Expenses:
|
|
|
|
|
|
|
|
|
Communication expenses
|
|
W
|
43,979
|
|
|
|
58,622
|
|
Utilities
|
|
|
270,621
|
|
|
|
247,919
|
|
Taxes and dues
|
|
|
36,118
|
|
|
|
33,500
|
|
Repair
|
|
|
312,517
|
|
|
|
260,533
|
|
Research and development
|
|
|
315,790
|
|
|
|
390,943
|
|
Training
|
|
|
37,278
|
|
|
|
42,781
|
|
Bad debt for accounts receivables - trade
|
|
|
60,450
|
|
|
|
45,754
|
|
Travel
|
|
|
27,860
|
|
|
|
28,912
|
|
Supplies and other
|
|
|
176,248
|
|
|
|
209,933
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,280,861
|
|
|
|
1,318,897
|
|
|
|
|
|
|
|
|
|
|
76
29.
|
Other Non-operating Income and Expenses
|
Details of other non-operating income and
expenses for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Other Non-operating Income:
|
|
|
|
|
|
|
|
|
Gain on disposal of property and equipment and intangible assets
|
|
W
|
7,140
|
|
|
|
8,792
|
|
Others
|
|
|
23,770
|
|
|
|
47,487
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
30,910
|
|
|
|
56,279
|
|
|
|
|
|
|
|
|
|
|
Other Non-operating Expenses:
|
|
|
|
|
|
|
|
|
Impairment loss on property and equipment, and intangible assets
|
|
W
|
35,845
|
|
|
|
47,489
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
21,392
|
|
|
|
32,950
|
|
Donations
|
|
|
72,454
|
|
|
|
67,823
|
|
Bad debt for accounts receivable other
|
|
|
15,323
|
|
|
|
17,943
|
|
Others
|
|
|
98,477
|
|
|
|
107,353
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
243,491
|
|
|
|
273,558
|
|
|
|
|
|
|
|
|
|
|
30.
|
Finance Income and Costs
|
|
(1)
|
Details of finance income and costs for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Finance Income:
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
45,884
|
|
|
|
60,006
|
|
Dividends
|
|
|
16,102
|
|
|
|
13,048
|
|
Gain on foreign currency transactions
|
|
|
18,923
|
|
|
|
16,301
|
|
Gain on foreign currency translations
|
|
|
5,090
|
|
|
|
6,277
|
|
Gain on disposal of long-term investment securities
|
|
|
10,786
|
|
|
|
13,994
|
|
Gain on valuation of derivative
|
|
|
1,927
|
|
|
|
8,713
|
|
Gain on settlement of derivatives
|
|
|
|
|
|
|
7,998
|
|
Gain relating to financial liability at fair value through profit or loss
|
|
|
5,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
103,900
|
|
|
|
126,337
|
|
|
|
|
|
|
|
|
|
|
77
30.
|
Finance Income and Costs, Continued
|
|
(1)
|
Details of finance income and costs for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Finance Costs:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
297,662
|
|
|
|
323,910
|
|
Loss on foreign currency transactions
|
|
|
17,931
|
|
|
|
18,053
|
|
Loss on foreign currency translations
|
|
|
4,750
|
|
|
|
5,079
|
|
Loss on disposal of long-term investment securities
|
|
|
2,599
|
|
|
|
2,694
|
|
Loss on valuation of derivatives
|
|
|
|
|
|
|
10
|
|
Loss on settlement of derivatives
|
|
|
4,845
|
|
|
|
672
|
|
Loss relating to financial asset at fair value through profit or loss
|
|
|
|
|
|
|
1,352
|
|
Loss relating to financial liability at fair value through profit or loss
|
|
|
526
|
|
|
|
10,370
|
|
Other finance costs
|
|
|
21,787
|
|
|
|
24,533
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
350,100
|
|
|
|
386,673
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Details of interest income included in finance income for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Interest income on cash equivalents and deposits
|
|
W
|
20,009
|
|
|
|
33,417
|
|
Interest income on installment receivables and others
|
|
|
25,875
|
|
|
|
26,589
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
45,884
|
|
|
|
60,006
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of interest expense included in finance costs for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Interest expense on bank overdrafts and borrowings
|
|
W
|
19,577
|
|
|
|
26,360
|
|
Interest expense on debentures
|
|
|
238,450
|
|
|
|
247,972
|
|
Interest on finance lease liabilities
|
|
|
58
|
|
|
|
504
|
|
Others
|
|
|
39,577
|
|
|
|
49,074
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
297,662
|
|
|
|
323,910
|
|
|
|
|
|
|
|
|
|
|
78
30.
|
Finance Income and Costs, Continued
|
|
(4)
|
Finance income and costs by categories of financial instruments for the years ended December 31, 2015 and 2014 are as follows. Bad debt expenses (reversal of allowance for doubtful accounts) for accounts receivable
trade, loans and receivables are excluded and are explained in Note 7.
|
|
(i)
|
Finance income and costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
|
|
Finance
income
|
|
|
Finance
costs
|
|
|
Finance
income
|
|
|
Finance
costs
|
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
1,927
|
|
|
|
4,188
|
|
|
|
8,713
|
|
|
|
1,361
|
|
Available-for-sale financial assets
|
|
|
31,220
|
|
|
|
24,386
|
|
|
|
32,227
|
|
|
|
27,227
|
|
Loans and receivables
|
|
|
64,749
|
|
|
|
15,861
|
|
|
|
57,685
|
|
|
|
18,182
|
|
Derivative financial instruments designated as hedged item
|
|
|
|
|
|
|
657
|
|
|
|
7,998
|
|
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
97,896
|
|
|
|
45,092
|
|
|
|
106,623
|
|
|
|
47,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
|
5,188
|
|
|
|
526
|
|
|
|
|
|
|
|
10,370
|
|
|
|
|
|
|
Financial liabilities measured at amortized cost
|
|
|
816
|
|
|
|
304,482
|
|
|
|
19,714
|
|
|
|
328,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
6,004
|
|
|
|
305,008
|
|
|
|
19,714
|
|
|
|
339,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
103,900
|
|
|
|
350,100
|
|
|
|
126,337
|
|
|
|
386,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii)
|
Other comprehensive income(loss)
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Financial Assets:
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
(3,661
|
)
|
|
|
26,856
|
|
Derivative financial instruments designated as hedged item
|
|
|
(3,248
|
)
|
|
|
(20,301
|
)
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
(6,909
|
)
|
|
|
6,555
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
Derivative financial instruments designated as hedged item
|
|
|
1,977
|
|
|
|
(21,801
|
)
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
1,977
|
|
|
|
(21,801
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
(4,932
|
)
|
|
|
(15,246
|
)
|
|
|
|
|
|
|
|
|
|
79
30.
|
Finance Income and Costs, Continued
|
|
(5)
|
Details of impairment losses for financial assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Available-for-sale financial assets
|
|
W
|
21,787
|
|
|
|
24,533
|
|
Bad debt for accounts receivable - trade
|
|
|
60,450
|
|
|
|
45,754
|
|
Bad debt for accounts receivable - other
|
|
|
15,323
|
|
|
|
17,943
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
97,560
|
|
|
|
88,230
|
|
|
|
|
|
|
|
|
|
|
31.
|
Income Tax Expense for Continuing Operations
|
|
(1)
|
Income tax expenses for continuing operations for the years ended December 31, 2015 and 2014 consist of the following:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Current tax expense
|
|
|
|
|
|
|
|
|
Current tax payable
|
|
W
|
417,022
|
|
|
|
181,273
|
|
Adjustments recognized in the period for current tax of prior periods
|
|
|
(4,124
|
)
|
|
|
(19,938
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
412,898
|
|
|
|
161,335
|
|
|
|
|
|
|
|
|
|
|
Deferred tax expense
|
|
|
|
|
|
|
|
|
Changes in net deferred tax assets
|
|
|
102,305
|
|
|
|
276,049
|
|
Tax directly charged to equity
|
|
|
4,669
|
|
|
|
16,929
|
|
Changes in scope of consolidation
|
|
|
(575
|
)
|
|
|
|
|
Others (exchange rate differences, etc.)
|
|
|
183
|
|
|
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,582
|
|
|
|
293,173
|
|
|
|
|
|
|
|
|
|
|
Income tax for continuing operation
|
|
W
|
519,480
|
|
|
|
454,508
|
|
|
|
|
|
|
|
|
|
|
80
31.
|
Income Tax Expense for Continuing Operations, Continued
|
|
(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, 2015 and 2014 is attributable to the following:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Income taxes at statutory income tax rates
|
|
W
|
492,096
|
|
|
|
544,964
|
|
Non-taxable income
|
|
|
(85,589
|
)
|
|
|
(32,277
|
)
|
Non-deductible expenses
|
|
|
44,770
|
|
|
|
61,580
|
|
Tax credit and tax reduction
|
|
|
(25,756
|
)
|
|
|
(33,581
|
)
|
Changes in unrealizable deferred taxes
|
|
|
83,623
|
|
|
|
(43,820
|
)
|
Others (income tax refund and tax rate differences, etc.)
|
|
|
10,336
|
|
|
|
(42,358
|
)
|
|
|
|
|
|
|
|
|
|
Income tax for continuing operation
|
|
W
|
519,480
|
|
|
|
454,508
|
|
|
|
|
|
|
|
|
|
|
Tax rates applied for the above taxable income for the years ended December 31, 2015 and 2014 are corporate
income tax rates applied for taxable income in Republic of Korea, of which SK Telecom Co., Ltd., the Parent Company, is located.
|
(3)
|
Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
W
|
2,461
|
|
|
|
(4,089
|
)
|
Share of other comprehensive income of associates
|
|
|
(63
|
)
|
|
|
(72
|
)
|
Gain or loss on valuation of derivatives
|
|
|
(448
|
)
|
|
|
12,188
|
|
Remeasurement of defined benefit liabilities
|
|
|
2,719
|
|
|
|
8,902
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,669
|
|
|
|
16,929
|
|
|
|
|
|
|
|
|
|
|
81
31.
|
Income Tax Expense for Continuing Operations, Continued
|
|
(4)
|
Details of changes in deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Beginning
|
|
|
Changes in
scope of
consolidation
|
|
|
Deferred tax
expense
(income)
|
|
|
Directly added
to (deducted
from) equity
|
|
|
Other
|
|
|
Ending
|
|
Deferred tax assets (liabilities) related to temporary differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
W
|
53,578
|
|
|
|
|
|
|
|
6,379
|
|
|
|
|
|
|
|
|
|
|
|
59,957
|
|
Accrued interest income
|
|
|
(2,450
|
)
|
|
|
|
|
|
|
(117
|
)
|
|
|
|
|
|
|
|
|
|
|
(2,567
|
)
|
Available-for-sale financial assets
|
|
|
(4,824
|
)
|
|
|
|
|
|
|
32,728
|
|
|
|
2,461
|
|
|
|
|
|
|
|
30,365
|
|
Investments in subsidiaries and associates
|
|
|
(211,043
|
)
|
|
|
|
|
|
|
(144,167
|
)
|
|
|
(63
|
)
|
|
|
|
|
|
|
(355,273
|
)
|
Property and equipment (depreciation)
|
|
|
(372,332
|
)
|
|
|
|
|
|
|
44,760
|
|
|
|
|
|
|
|
|
|
|
|
(327,572
|
)
|
Provisions
|
|
|
7,587
|
|
|
|
|
|
|
|
(5,102
|
)
|
|
|
|
|
|
|
|
|
|
|
2,485
|
|
Retirement benefit obligation
|
|
|
27,361
|
|
|
|
|
|
|
|
(1,753
|
)
|
|
|
2,719
|
|
|
|
|
|
|
|
28,327
|
|
Gain or loss on valuation of derivatives
|
|
|
24,969
|
|
|
|
|
|
|
|
|
|
|
|
(448
|
)
|
|
|
|
|
|
|
24,521
|
|
Gain or loss on foreign currency translation
|
|
|
19,324
|
|
|
|
|
|
|
|
193
|
|
|
|
|
|
|
|
|
|
|
|
19,517
|
|
Tax free reserve for research and manpower development
|
|
|
(7,162
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,162
|
)
|
Goodwill relevant to leased line
|
|
|
4,433
|
|
|
|
|
|
|
|
(720
|
)
|
|
|
|
|
|
|
|
|
|
|
3,713
|
|
Unearned revenue (activation fees)
|
|
|
25,977
|
|
|
|
|
|
|
|
(23,912
|
)
|
|
|
|
|
|
|
|
|
|
|
2,065
|
|
Others
|
|
|
(15,682
|
)
|
|
|
(575
|
)
|
|
|
(7,708
|
)
|
|
|
|
|
|
|
183
|
|
|
|
(23,782
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(450,264
|
)
|
|
|
(575
|
)
|
|
|
(99,419
|
)
|
|
|
4,669
|
|
|
|
183
|
|
|
|
(545,406
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets related to unused tax loss carryforwards and unused tax credit carryforwards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax loss carryforwards
|
|
|
31,712
|
|
|
|
|
|
|
|
(7,163
|
)
|
|
|
|
|
|
|
|
|
|
|
24,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(418,552
|
)
|
|
|
(575
|
)
|
|
|
(106,582
|
)
|
|
|
4,669
|
|
|
|
183
|
|
|
|
(520,857
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
31.
|
Income Tax Expense for Continuing Operations, Continued
|
|
(4)
|
Details of changes in deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Beginning
|
|
|
Deferred tax
expense
(income)
|
|
|
Directly added
to (deducted
from) equity
|
|
|
Other
|
|
|
Ending
|
|
Deferred tax assets (liabilities) related to temporary differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
W
|
56,427
|
|
|
|
(2,700
|
)
|
|
|
|
|
|
|
(149
|
)
|
|
|
53,578
|
|
Accrued interest income
|
|
|
(2,831
|
)
|
|
|
381
|
|
|
|
|
|
|
|
|
|
|
|
(2,450
|
)
|
Available-for-sale financial assets
|
|
|
(589
|
)
|
|
|
(146
|
)
|
|
|
(4,089
|
)
|
|
|
|
|
|
|
(4,824
|
)
|
Investments in subsidiaries and associates
|
|
|
(44,844
|
)
|
|
|
(165,663
|
)
|
|
|
(72
|
)
|
|
|
(464
|
)
|
|
|
(211,043
|
)
|
Property and equipment (depreciation)
|
|
|
(333,633
|
)
|
|
|
(38,690
|
)
|
|
|
|
|
|
|
(9
|
)
|
|
|
(372,332
|
)
|
Provisions
|
|
|
14,303
|
|
|
|
(6,699
|
)
|
|
|
|
|
|
|
(17
|
)
|
|
|
7,587
|
|
Retirement benefit obligation
|
|
|
16,089
|
|
|
|
2,390
|
|
|
|
8,902
|
|
|
|
(20
|
)
|
|
|
27,361
|
|
Gain or loss on valuation of derivatives
|
|
|
12,779
|
|
|
|
2
|
|
|
|
12,188
|
|
|
|
|
|
|
|
24,969
|
|
Gain or loss on foreign currency translation
|
|
|
19,572
|
|
|
|
(248
|
)
|
|
|
|
|
|
|
|
|
|
|
19,324
|
|
Tax free reserve for research and manpower development
|
|
|
(40,011
|
)
|
|
|
32,849
|
|
|
|
|
|
|
|
|
|
|
|
(7,162
|
)
|
Goodwill relevant to leased line
|
|
|
31,025
|
|
|
|
(26,592
|
)
|
|
|
|
|
|
|
|
|
|
|
4,433
|
|
Unearned revenue (activation fees)
|
|
|
53,412
|
|
|
|
(27,435
|
)
|
|
|
|
|
|
|
|
|
|
|
25,977
|
|
Others
|
|
|
44,738
|
|
|
|
(61,274
|
)
|
|
|
|
|
|
|
854
|
|
|
|
(15,682
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(173,563
|
)
|
|
|
(293,825
|
)
|
|
|
16,929
|
|
|
|
195
|
|
|
|
(450,264
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets related to unused tax loss carryforwards and unused tax credit carryforwards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax loss carryforwards
|
|
|
31,060
|
|
|
|
652
|
|
|
|
|
|
|
|
|
|
|
|
31,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(142,503
|
)
|
|
|
(293,173
|
)
|
|
|
16,929
|
|
|
|
195
|
|
|
|
(418,552
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83
31.
|
Income Tax Expense for Continuing Operations, Continued
|
|
(5)
|
Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are not recognized as deferred tax assets (liabilities), as the Group does not believe it is probable that the
deferred tax assets will be realizable in the future, in the consolidated statements of financial position as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Allowance for doubtful accounts
|
|
W
|
182,266
|
|
|
|
155,634
|
|
Investments in subsidiaries and associates
|
|
|
281,719
|
|
|
|
422,033
|
|
Other temporary differences
|
|
|
285,845
|
|
|
|
314,188
|
|
Unused tax loss carryforwards
|
|
|
1,034,070
|
|
|
|
729,570
|
|
Unused tax credit carryforwards
|
|
|
2,271
|
|
|
|
2,438
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,786,171
|
|
|
|
1,623,863
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
The expirations of unused tax loss carryforwards and unused tax credit carryforwards which are not recognized as deferred tax assets as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
Unused tax loss carryforwards
|
|
|
Unused tax credit carryforwards
|
|
|
|
|
Less than 1 year
|
|
W
|
4,894
|
|
|
|
1,041
|
|
1 ~ 2 years
|
|
|
|
|
|
|
155
|
|
2 ~ 3 years
|
|
|
|
|
|
|
870
|
|
More than 3 years
|
|
|
1,029,176
|
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,034,070
|
|
|
|
2,271
|
|
|
|
|
|
|
|
|
|
|
84
|
(1)
|
Basic earnings per share
|
|
1)
|
Basic earnings per share for the years ended December 31, 2015 and 2014 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Basic earnings per share attributable to owners of the Parent Company:
|
|
|
|
|
|
|
|
|
Profit attributable to owners of the Parent Company
|
|
W
|
1,518,604
|
|
|
|
1,801,178
|
|
Interest on hybrid bond
|
|
|
(16,840
|
)
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
|
|
|
Profit attributable to owners of the Parent Company on common shares
|
|
|
1,501,764
|
|
|
|
1,784,338
|
|
Weighted average number of common shares outstanding
|
|
|
71,551,966
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (In won)
|
|
W
|
20,988
|
|
|
|
25,154
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
The weighted average number of common shares outstanding for the years ended December 31, 2015 and 2014 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Outstanding common shares
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
Weighted number of treasury stocks
|
|
|
(9,193,745
|
)
|
|
|
(9,809,375
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
71,551,966
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Diluted earnings per share
|
For the year ended December 31, 2015 and 2014, there were no
potentially dilutive shares. Therefore, diluted earnings per share for the years ended December 31, 2015 and 2014 are the same as basic earnings per share.
85
|
(1)
|
Details of dividends declared
|
Details of dividend declared for the years ended December 31,
2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for face value and share data)
|
|
Year
|
|
Dividend type
|
|
Number of shares
outstanding
|
|
|
Face value
(In won)
|
|
|
Dividend ratio
|
|
|
Dividends
|
|
2015
|
|
Cash dividends (interim)
|
|
|
72,629,160
|
|
|
|
500
|
|
|
|
200
|
%
|
|
|
72,629
|
|
|
Cash dividends (year-end)
|
|
|
70,609,160
|
|
|
|
500
|
|
|
|
1800
|
%
|
|
|
635,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
708,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
Cash dividends (interim)
|
|
|
70,936,336
|
|
|
|
500
|
|
|
|
200
|
%
|
|
|
70,937
|
|
|
Cash dividends (year-end)
|
|
|
70,936,336
|
|
|
|
500
|
|
|
|
1680
|
%
|
|
|
595,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
666,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Dividends payout ratio
|
Dividends payout ratios for the years ended December 31, 2015 and 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Year
|
|
Dividends calculated
|
|
|
Profit
|
|
|
Dividends payout ratio
|
|
2015
|
|
W
|
708,111
|
|
|
|
1,518,604
|
|
|
|
46.63
|
%
|
2014
|
|
W
|
666,802
|
|
|
|
1,801,178
|
|
|
|
37.02
|
%
|
|
(3)
|
Dividends yield ratio
|
Dividends yield ratios for the years ended December 31, 2015 and 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won)
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Dividend type
|
|
Dividend per share
|
|
|
Closing price at
settlement
|
|
|
Dividend yield
ratio
|
|
2015
|
|
Cash dividends
|
|
|
10,000
|
|
|
|
215,500
|
|
|
|
4.64
|
%
|
2014
|
|
Cash dividends
|
|
|
9,400
|
|
|
|
268,000
|
|
|
|
3.51
|
%
|
86
34.
|
Categories of Financial Instruments
|
|
(1)
|
Financial assets by categories as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Financial assets
at fair value
through profit or
loss
|
|
|
Available-
for-sale
financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative financial
instruments
designated as hedged
item
|
|
|
Total
|
|
Cash and cash equivalents
|
|
W
|
|
|
|
|
|
|
|
|
768,922
|
|
|
|
|
|
|
|
768,922
|
|
Financial instruments
|
|
|
|
|
|
|
|
|
|
|
701,713
|
|
|
|
|
|
|
|
701,713
|
|
Short-term investment securities
|
|
|
|
|
|
|
92,262
|
|
|
|
|
|
|
|
|
|
|
|
92,262
|
|
Long-term investment securities
|
|
|
|
|
|
|
1,207,226
|
|
|
|
|
|
|
|
|
|
|
|
1,207,226
|
|
Accounts receivable trade
|
|
|
|
|
|
|
|
|
|
|
2,390,110
|
|
|
|
|
|
|
|
2,390,110
|
|
Loans and other receivables(*)
|
|
|
|
|
|
|
|
|
|
|
1,102,403
|
|
|
|
|
|
|
|
1,102,403
|
|
Derivative financial assets
|
|
|
6,277
|
|
|
|
|
|
|
|
|
|
|
|
160,122
|
|
|
|
166,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,277
|
|
|
|
1,299,488
|
|
|
|
4,963,148
|
|
|
|
160,122
|
|
|
|
6,429,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Financial assets
at fair value
through profit
or loss
|
|
|
Available-for-
sale financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative financial
instruments
designated as hedged
item
|
|
|
Total
|
|
Cash and cash equivalents
|
|
W
|
|
|
|
|
|
|
|
|
834,429
|
|
|
|
|
|
|
|
834,429
|
|
Financial instruments
|
|
|
|
|
|
|
|
|
|
|
313,699
|
|
|
|
|
|
|
|
313,699
|
|
Short-term investment securities
|
|
|
|
|
|
|
280,161
|
|
|
|
|
|
|
|
|
|
|
|
280,161
|
|
Long-term investment securities
|
|
|
7,817
|
|
|
|
948,463
|
|
|
|
|
|
|
|
|
|
|
|
956,280
|
|
Accounts receivable trade
|
|
|
|
|
|
|
|
|
|
|
2,460,686
|
|
|
|
|
|
|
|
2,460,686
|
|
Loans and other receivables(*)
|
|
|
|
|
|
|
|
|
|
|
1,123,507
|
|
|
|
|
|
|
|
1,123,507
|
|
Derivative financial assets
|
|
|
8,713
|
|
|
|
|
|
|
|
|
|
|
|
61,322
|
|
|
|
70,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
16,530
|
|
|
|
1,228,624
|
|
|
|
4,732,321
|
|
|
|
61,322
|
|
|
|
6,038,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87
34.
|
Categories of Financial Instruments, continued
|
|
(1)
|
Financial assets by categories as of December 31, 2015 and 2014 are as follows, continued:
|
(*)
|
Details of loans and other receivables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Short-term loans
|
|
W
|
53,895
|
|
|
|
74,512
|
|
Accounts receivable other
|
|
|
673,739
|
|
|
|
690,527
|
|
Accrued income
|
|
|
10,753
|
|
|
|
10,134
|
|
Other current assets
|
|
|
1,861
|
|
|
|
3,866
|
|
Long-term loans
|
|
|
62,454
|
|
|
|
55,728
|
|
Long-term accounts receivable-other
|
|
|
2,420
|
|
|
|
3,596
|
|
Guarantee deposits
|
|
|
297,281
|
|
|
|
285,144
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,102,403
|
|
|
|
1,123,507
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Financial liabilities by categories as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
Financial
liabilities at fair
value through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized cost
|
|
|
Derivative financial
instruments
designated as hedged
item
|
|
|
Total
|
|
Accounts payable trade
|
|
W
|
|
|
|
|
279,782
|
|
|
|
|
|
|
|
279,782
|
|
Derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
89,296
|
|
|
|
89,296
|
|
Borrowings
|
|
|
|
|
|
|
415,134
|
|
|
|
|
|
|
|
415,134
|
|
Debentures(*1)
|
|
|
155,704
|
|
|
|
6,952,949
|
|
|
|
|
|
|
|
7,108,653
|
|
Accounts payable - other and others (*2)
|
|
|
|
|
|
|
2,970,801
|
|
|
|
|
|
|
|
2,970,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
155,704
|
|
|
|
10,618,666
|
|
|
|
89,296
|
|
|
|
10,863,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
Financial
liabilities at fair
value through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized cost
|
|
|
Derivative financial
instruments
designated as hedged
item
|
|
|
Total
|
|
Accounts payable trade
|
|
W
|
|
|
|
|
275,495
|
|
|
|
|
|
|
|
275,495
|
|
Derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
130,889
|
|
|
|
130,889
|
|
Borrowings
|
|
|
|
|
|
|
537,562
|
|
|
|
|
|
|
|
537,562
|
|
Debentures(*1)
|
|
|
110,365
|
|
|
|
6,108,265
|
|
|
|
|
|
|
|
6,218,630
|
|
Accounts payable - other and others (*2)
|
|
|
|
|
|
|
3,241,615
|
|
|
|
|
|
|
|
3,241,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
110,365
|
|
|
|
10,162,937
|
|
|
|
130,889
|
|
|
|
10,404,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Bonds classified as financial liabilities at fair value through profit or loss as of December 31, 2015 and 2014 are structured bonds and they were designated as financial liabilities at fair value through profit or loss
in order to settle the difference of the measurement bases of accounting profit or loss between the related derivatives and bonds.
|
88
34.
|
Categories of Financial Instruments, Continued
|
|
(2)
|
Financial liabilities by categories as of December 31, 2015 and 2014 are as follows, continued:
|
(*2)
|
Details of accounts payable other and other payables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Accounts payable other
|
|
W
|
1,323,434
|
|
|
|
1,381,850
|
|
Withholdings
|
|
|
1,178
|
|
|
|
1,760
|
|
Accrued expenses
|
|
|
920,739
|
|
|
|
952,418
|
|
Current portion of long-term payables - other
|
|
|
120,211
|
|
|
|
193,193
|
|
Long-term payables other
|
|
|
581,697
|
|
|
|
684,567
|
|
Finance lease liabilities
|
|
|
|
|
|
|
26
|
|
Other non-current liabilities
|
|
|
23,542
|
|
|
|
27,801
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,970,801
|
|
|
|
3,241,615
|
|
|
|
|
|
|
|
|
|
|
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 Groups financial assets under financial risk management consist of cash and cash equivalents, financial instruments,
available-for-sale financial assets, trade and other receivables. Financial liabilities consist of trade and other payables, borrowings, and debentures.
The Group is exposed to currency risk mainly on exchange fluctuations on
recognized assets and liabilities. The Group manages currency risk by currency forward, etc. if needed to hedge currency risk on business transactions. Currency risk occurs on forecasted transaction and recognized assets and liabilities which are
denominated in a currency other than the functional currency of the Group.
89
35.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
|
1)
|
Market risk, Continued
|
|
(i)
|
Currency risk, Continued
|
Monetary foreign currency assets and liabilities as of December 31,
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars, thousands of Euros, thousands of Japanese Yen, thousands of other currencies)
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
Foreign
currencies
|
|
|
Won
translation
|
|
|
Foreign
currencies
|
|
|
Won
translation
|
|
USD
|
|
|
162,322
|
|
|
W
|
189,763
|
|
|
|
1,836,860
|
|
|
W
|
2,152,800
|
|
EUR
|
|
|
23,421
|
|
|
|
30,005
|
|
|
|
257
|
|
|
|
328
|
|
JPY
|
|
|
24,462
|
|
|
|
238
|
|
|
|
695
|
|
|
|
7
|
|
AUD
|
|
|
|
|
|
|
|
|
|
|
299,023
|
|
|
|
255,097
|
|
CHF
|
|
|
|
|
|
|
|
|
|
|
299,403
|
|
|
|
354,909
|
|
Others
|
|
|
4,995
|
|
|
|
1,148
|
|
|
|
291
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
221,154
|
|
|
|
|
|
|
W
|
2,763,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2015, effects on income (loss) before income tax as a result of
change in exchange rate by 10% are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
If increased by 10%
|
|
|
If decreased by 10%
|
|
USD
|
|
W
|
9,600
|
|
|
|
(9,600
|
)
|
EUR
|
|
|
2,934
|
|
|
|
(2,934
|
)
|
JPY
|
|
|
23
|
|
|
|
(23
|
)
|
Others
|
|
|
100
|
|
|
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
12,657
|
|
|
|
(12,657
|
)
|
|
|
|
|
|
|
|
|
|
The Group has equity securities which include listed and non-listed
securities for its liquidity and operating purpose. As of December 31, 2015, available-for-sale equity instruments measured at fair value amount to
W
1,076,291 million.
Since the Groups interest bearing assets are mostly fixed-interest
bearing assets, as such, the Groups revenue and operating cash flow are not influenced by the changes in market interest rates. However, the Group still has interest rate risk arising from borrowings and debentures.
Accordingly, the Group performs various analysis of interest rate risk, which includes refinancing, renewal, alternative financing and hedging
instrument option, to reduce interest rate risk and to optimize its financing.
90
35.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
|
1)
|
Market risk, Continued
|
|
(iii)
|
Interest rate risk, Continued
|
The interest rate risk arises from the Groups
floating-rate borrowings and bonds agreements. As of December 31, 2015, the floating-rate borrowings and bonds are
W
20,573 million and
W
351,600 million, respectively, and the Group has entered into interest rate
swap agreements, as described in Note 22, for all floating-rate bonds to hedge the interest rate risk of floating-rate bonds. On the other hand, if the interest rate increases (decreases) 1% with all other variables held constant, income before
income taxes for the year ended December 31, 2015, fluctuates as much as
W
206 million due to the interest expense on floating-rate borrowings that have not entered into an interest rate swap agreement.
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. The maximum credit exposure as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Cash and cash equivalents
|
|
W
|
768,794
|
|
|
|
833,129
|
|
Financial instruments
|
|
|
701,713
|
|
|
|
313,699
|
|
Available-for-sale financial assets
|
|
|
3,430
|
|
|
|
15,498
|
|
Accounts receivable trade
|
|
|
2,390,110
|
|
|
|
2,460,686
|
|
Loans and receivables
|
|
|
1,102,403
|
|
|
|
1,123,507
|
|
Derivative financial assets
|
|
|
166,399
|
|
|
|
70,035
|
|
Financial assets at fair value through profit or loss
|
|
|
|
|
|
|
7,817
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,132,849
|
|
|
|
4,824,371
|
|
|
|
|
|
|
|
|
|
|
To manage credit risk, the Group evaluates the credit worthiness of each customer or counterparty considering
the partys financial information, its own trading records and other factors; based on such information, the Group establishes credit limits for each customer or counterparty.
For the year ended December 31, 2015, the Group has no trade and other receivables or loans which have indications of significant impairment
loss or are overdue for a prolonged period. As a result, the Group believes that the possibility of default is remote. Also, the Groups credit risk can rise 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 with high credit worthy financial institutions. The amount of maximum exposure to credit risk of the Group is the carrying amount of financial
assets as of December 31, 2015.
In addition, the aging of trade and other receivables that are over-due at the end of the reporting period
but not impaired is stated in Note 7 and the analysis of financial assets that are individually determined to be impaired at the end of the reporting period is stated in Note 30.
91
35.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
The Groups 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 flexibly enough liquidity under credit lines through active operating activities.
Contractual maturities of financial liabilities as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than 1
year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
Accounts payable - trade
|
|
W
|
279,782
|
|
|
|
279,782
|
|
|
|
279,782
|
|
|
|
|
|
|
|
|
|
Borrowings(*1)
|
|
|
415,134
|
|
|
|
428,012
|
|
|
|
298,118
|
|
|
|
109,200
|
|
|
|
20,694
|
|
Debentures(*1)
|
|
|
7,108,653
|
|
|
|
8,514,028
|
|
|
|
897,895
|
|
|
|
4,516,896
|
|
|
|
3,099,237
|
|
Accounts payable - other and others(*2)
|
|
|
2,970,801
|
|
|
|
3,030,356
|
|
|
|
2,330,565
|
|
|
|
578,643
|
|
|
|
121,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,774,370
|
|
|
|
12,252,178
|
|
|
|
3,806,360
|
|
|
|
5,204,739
|
|
|
|
3,241,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group does not expect that the cash flows included in the maturity analysis could occur significantly
earlier or at different amounts.
(*1)
|
Includes estimated interest to be paid and excludes discounts on borrowings and debentures.
|
(*2)
|
Excludes discounts on accounts payable-other and others.
|
As of December 31, 2015, periods
which cash flows from cash flow hedge derivatives are expected to be incurred are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than 1
year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
Assets
|
|
W
|
160,122
|
|
|
|
171,808
|
|
|
|
1,894
|
|
|
|
138,980
|
|
|
|
30,934
|
|
Liabilities
|
|
|
(89,296
|
)
|
|
|
(92,498
|
)
|
|
|
(4,882
|
)
|
|
|
(87,616
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
70,826
|
|
|
|
79,310
|
|
|
|
(2,988
|
)
|
|
|
51,364
|
|
|
|
30,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
35.
|
Financial Risk Management, Continued
|
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 balance. The overall strategy of the Group is the same as that of the group as of and for the year ended December 31, 2014.
The Group monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total
equity which are extracted from the financial statements.
Debt-equity ratio as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Liabilities
|
|
W
|
13,207,291
|
|
|
|
12,692,963
|
|
Equity
|
|
|
15,374,096
|
|
|
|
15,248,270
|
|
|
|
|
|
|
|
|
|
|
Debt-equity ratio
|
|
|
85.91
|
%
|
|
|
83.24
|
%
|
|
|
|
|
|
|
|
|
|
93
35.
|
Financial Risk Management, Continued
|
|
1)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Financial assets that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
6,277
|
|
|
|
|
|
|
|
6,277
|
|
|
|
|
|
|
|
6,277
|
|
Derivative financial assets
|
|
|
160,122
|
|
|
|
|
|
|
|
160,122
|
|
|
|
|
|
|
|
160,122
|
|
Available-for-sale financial assets
|
|
|
1,076,291
|
|
|
|
897,958
|
|
|
|
47,262
|
|
|
|
131,071
|
|
|
|
1,076,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,242,690
|
|
|
|
897,958
|
|
|
|
213,661
|
|
|
|
131,071
|
|
|
|
1,242,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(*1)
|
|
W
|
768,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(*1,2)
|
|
|
223,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others(*1)
|
|
|
3,492,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments(*1)
|
|
|
701,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,186,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
155,704
|
|
|
|
|
|
|
|
155,704
|
|
|
|
|
|
|
|
155,704
|
|
Derivative financial liabilities
|
|
|
89,296
|
|
|
|
|
|
|
|
89,296
|
|
|
|
|
|
|
|
89,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
245,000
|
|
|
|
|
|
|
|
245,000
|
|
|
|
|
|
|
|
245,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable trade(*1)
|
|
W
|
279,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
415,134
|
|
|
|
|
|
|
|
416,702
|
|
|
|
|
|
|
|
416,702
|
|
Debentures
|
|
|
6,952,949
|
|
|
|
|
|
|
|
7,411,909
|
|
|
|
|
|
|
|
7,411,909
|
|
Accounts payable - other and others(*1)
|
|
|
2,970,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,618,666
|
|
|
|
|
|
|
|
7,828,611
|
|
|
|
|
|
|
|
7,828,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94
35.
|
Financial Risk Management, Continued
|
|
(3)
|
Fair value, Continued
|
|
2)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
Carrying amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Financial assets that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
16,530
|
|
|
|
|
|
|
|
8,713
|
|
|
|
7,817
|
|
|
|
16,530
|
|
Derivative financial assets
|
|
|
61,322
|
|
|
|
|
|
|
|
61,322
|
|
|
|
|
|
|
|
61,322
|
|
Available-for-sale financial assets
|
|
|
846,614
|
|
|
|
657,286
|
|
|
|
47,002
|
|
|
|
142,326
|
|
|
|
846,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
924,466
|
|
|
|
657,286
|
|
|
|
117,037
|
|
|
|
150,143
|
|
|
|
924,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(*1)
|
|
W
|
834,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(*1,2)
|
|
|
382,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others(*1)
|
|
|
3,584,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments(*1)
|
|
|
313,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,114,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
110,365
|
|
|
|
|
|
|
|
110,365
|
|
|
|
|
|
|
|
110,365
|
|
Derivative financial liabilities
|
|
|
130,889
|
|
|
|
|
|
|
|
130,889
|
|
|
|
|
|
|
|
130,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
241,254
|
|
|
|
|
|
|
|
241,254
|
|
|
|
|
|
|
|
241,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable trade(*1)
|
|
W
|
275,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
537,562
|
|
|
|
|
|
|
|
549,083
|
|
|
|
|
|
|
|
549,083
|
|
Debentures
|
|
|
6,108,265
|
|
|
|
|
|
|
|
6,514,832
|
|
|
|
|
|
|
|
6,514,832
|
|
Accounts payable - other and others(*1)
|
|
|
3,241,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,162,937
|
|
|
|
|
|
|
|
7,063,915
|
|
|
|
|
|
|
|
7,063,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Does not include fair values of financial assets and liabilities of which fair values have not been measured as carrying amounts are closed to the reasonable approximate fair values.
|
(*2)
|
Equity instruments which do not have quoted price in an active market for the identical instruments (inputs for level 1) are measured at cost in accordance with K-IFRS 1039 as such equity instruments cannot be reliably
measured using other methods.
|
Fair value of the financial instruments that are traded in an active market
(available-for-sale financial assets, financial liabilities at fair value through profit or loss, etc.) is measured based on the bid price at the end of the reporting date.
95
35.
|
Financial Risk Management, Continued
|
|
(3)
|
Fair value, Continued
|
The Group uses various valuation methods for valuation of fair value of
financial instruments that are not traded in an active market. Fair value of available-for-sale securities is determined using the market approach methods and financial assets through profit or loss are measured using the option pricing model. In
addition, derivative financial contracts and long-term liabilities are measured using the present value methods. Inputs used to such valuation methods include swap rate, interest rate, and risk premium, and the Group performs valuation using the
inputs which are consistent with natures of assets and liabilities being evaluated.
Fair values of accounts receivable trade, and
accounts payable - trade are considered to be carrying amount less impairment and fair value of financial liabilities for the disclosure purpose is estimated by discounting contractual future cash flows using the current market interest rate used
for the similar financial instruments by the Group.
Interest rates used by the Group for the fair value measurement as of December 31,
2015 are as follows:
|
|
|
|
|
Interest rate
|
Derivative instruments
|
|
1.92 ~ 2.37%
|
Borrowings and debentures
|
|
2.12 ~ 3.34%
|
3) There have been no transfers from Level 2 to Level 1 in 2015 and changes of financial assets classified as
Level 3 for the year ended December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
Jan. 1
|
|
|
Acquisition
|
|
|
Loss for the
period
|
|
|
Other
comprehensive loss
|
|
|
Disposal
|
|
|
Others
|
|
|
Balance at
Dec. 31
|
|
Available-for-sale financial assets
|
|
|
142,326
|
|
|
|
3,103
|
|
|
|
(449
|
)
|
|
|
(2,379
|
)
|
|
|
(30,359
|
)
|
|
|
18,829
|
|
|
|
131,071
|
|
96
35.
|
Financial Risk Management, Continued
|
|
(4)
|
Enforceable master netting agreement or similar agreement
|
Carrying amount of financial
instruments recognized of which offset agreements are applicable as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Gross financial
instruments
recognized
|
|
|
Gross offset
financial
instruments
recognized
|
|
|
Net financial
instruments
presented on the
statements of
financial position
|
|
|
Relevant amount not offset on
the statements of financial
position
|
|
|
Net amount
|
|
|
|
|
|
|
Financial
instruments
|
|
|
Cash collaterals
received
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
55,673
|
|
|
|
|
|
|
|
55,673
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others
|
|
|
129,527
|
|
|
|
(113,003
|
)
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
185,200
|
|
|
|
(113,003
|
)
|
|
|
72,197
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
89,734
|
|
|
|
|
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
34,061
|
|
Accounts payable other and others
|
|
|
113,003
|
|
|
|
(113,003
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
202,737
|
|
|
|
(113,003
|
)
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
34,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount of financial instruments recognized of which offset agreements are applicable as of December
31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Gross financial
instruments
recognized
|
|
|
Gross offset
financial
instruments
recognized
|
|
|
Net financial
instruments
presented on the
statements of
financial position
|
|
|
Relevant amount not offset on
the statements of financial
position
|
|
|
Net amount
|
|
|
|
|
|
|
Financial
instruments
|
|
|
Cash
collaterals
received
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
48,057
|
|
|
|
|
|
|
|
48,057
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
2,165
|
|
Accounts receivable trade and others
|
|
|
128,794
|
|
|
|
(117,568
|
)
|
|
|
11,226
|
|
|
|
|
|
|
|
|
|
|
|
11,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
176,851
|
|
|
|
(117,568
|
)
|
|
|
59,283
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
13,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
45,892
|
|
|
|
|
|
|
|
45,892
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
|
|
Accounts payable others
|
|
|
117,568
|
|
|
|
(117,568)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
163,460
|
|
|
|
(117,568
|
)
|
|
|
45,892
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The amount is applicable by enforceable master netting agreement according to ISDA (International Swap and Derivatives Association).
|
97
36.
|
Transactions with Related Parties
|
|
(1)
|
List of related parties
|
|
|
|
Relationship
|
|
Interest rate
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
Joint venture
|
|
Dogus Planet, Inc. and 3 others
|
Associates
|
|
SK hynix Inc. and 52 others
|
Affiliates
|
|
The Ultimate Controlling Entitys subsidiaries and associates, etc.
|
|
(2)
|
Compensation for the key management
|
The Parent Company considers registered directors who have
substantial role and responsibility in planning, operating, and controlling of the business as key management. The considerations given to such key management for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Salaries
|
|
W
|
1,971
|
|
|
|
2,600
|
|
Provision for retirement benefits
|
|
|
626
|
|
|
|
907
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,597
|
|
|
|
3,507
|
|
|
|
|
|
|
|
|
|
|
Compensation for the key management includes salaries, non-monetary salaries and contributions made in relation
to the pension plan.
98
36.
|
Transactions with Related Parties, Continued
|
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
Scope
|
|
Company
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Loans
collection
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*1)
|
|
W
|
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
|
|
|
|
W
|
193,284
|
|
|
|
2,136,720
|
|
|
|
835,880
|
|
|
|
8,977
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entitys investor using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Parent Company, and changed its name to
SK Holdings Co., Ltd.
|
(*2)
|
These relates to transactions occurred until July 31, 2015 before the merger with SK C&C Co., Ltd.
|
(*3)
|
Operating expense and others include
W
191,416 million of dividends paid by the Parent Company.
|
(*4)
|
Operating revenue and others include
W
43,830 million of dividends paid by SK hynix Inc. and deducted from the investment in associates.
|
(*5)
|
Operating revenue and others include
W
2,103 million and
W
457 million of dividends paid by Korea IT Fund and UniSK, respectively, and deducted from the investment in associates.
|
99
36.
|
Transactions with Related Parties, Continued
|
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows, continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
Scope
|
|
Company
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Loans
collection
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.(*1)
|
|
W
|
530
|
|
|
|
226,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
2,395
|
|
|
|
45,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
253
|
|
|
|
6,492
|
|
|
|
10,418
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.
|
|
|
12,964
|
|
|
|
3,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK USA, Inc.
|
|
|
|
|
|
|
2,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Wyverns Baseball Club., Ltd.
|
|
|
901
|
|
|
|
22,402
|
|
|
|
|
|
|
|
|
|
|
|
204
|
|
|
|
KEB HanaCard Co., Ltd. (*2)
|
|
|
39,828
|
|
|
|
5,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
5,852
|
|
|
|
15,150
|
|
|
|
|
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,193
|
|
|
|
100,421
|
|
|
|
10,418
|
|
|
|
45
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
3,385
|
|
|
|
42,964
|
|
|
|
460,783
|
|
|
|
|
|
|
|
|
|
|
|
SK C&C Co., Ltd.
|
|
|
18,309
|
|
|
|
360,842
|
|
|
|
168,778
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
16,230
|
|
|
|
1,509,017
|
|
|
|
5,388
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
13,017
|
|
|
|
106,273
|
|
|
|
2,583
|
|
|
|
|
|
|
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
494
|
|
|
|
64,038
|
|
|
|
205,538
|
|
|
|
|
|
|
|
|
|
|
|
SK Energy Co., Ltd.
|
|
|
22,650
|
|
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Gas Co., Ltd.
|
|
|
10,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
25,537
|
|
|
|
38,868
|
|
|
|
12,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109,737
|
|
|
|
2,122,946
|
|
|
|
855,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
172,460
|
|
|
|
2,450,139
|
|
|
|
866,116
|
|
|
|
45
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Operating expense and others include
W
191,416 million of dividends paid by the Group.
|
(*2)
|
During the year ended December 31, 2014, due to merger between Hana SK Card Co., Ltd., the Parent Companys associate and KEB Card Co., Ltd., the Group returned 57,647,058 shares of Hana SK Card Co., Ltd., and
received 67,627,587 shares of the merged company, KEB HanaCard Co., Ltd.
|
100
36.
|
Transactions with Related Parties, Continued
|
|
(4)
|
Account balances as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts receivable-
trade, and others
|
|
|
Accounts payable
other, and others
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.) (*)
|
|
W
|
|
|
|
|
1,836
|
|
|
|
160,133
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
|
|
|
|
12
|
|
|
|
6,162
|
|
|
|
F&U Credit information Co., Ltd.
|
|
|
|
|
|
|
66
|
|
|
|
934
|
|
|
|
SK hynix Inc.
|
|
|
|
|
|
|
4,360
|
|
|
|
155
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,017
|
|
|
|
4,502
|
|
|
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,890
|
|
|
|
38,412
|
|
|
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,148
|
|
|
|
|
|
|
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
|
|
|
|
1,771
|
|
|
|
9,042
|
|
|
|
Xian Tianlong Science and Technology Co., Ltd.
|
|
|
8,287
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
|
|
|
299
|
|
|
|
964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,342
|
|
|
|
49,422
|
|
|
|
17,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
|
|
|
|
1,005
|
|
|
|
14,877
|
|
|
|
SK Networks. Co., Ltd.
|
|
|
|
|
|
|
1,569
|
|
|
|
208,291
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
9,414
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
|
|
|
|
140
|
|
|
|
37,491
|
|
|
|
SK innovation co., ltd.
|
|
|
|
|
|
|
2,159
|
|
|
|
1,424
|
|
|
|
SK Energy Co., Ltd.
|
|
|
|
|
|
|
1,681
|
|
|
|
173
|
|
|
|
SK Gas Co., Ltd.
|
|
|
|
|
|
|
1,830
|
|
|
|
9
|
|
|
|
Others
|
|
|
|
|
|
|
2,886
|
|
|
|
58,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,270
|
|
|
|
329,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
33,342
|
|
|
|
62,528
|
|
|
|
507,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entitys investor using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Parent Company, and changed its name to
SK, Holdings Co., Ltd.
|
101
36.
|
Transactions with Related Parties, Continued
|
|
(4)
|
Account balances as of December 31, 2015 and 2014 are as follows, continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts receivable-
trade, and others
|
|
|
Accounts payable
other, and others
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
W
|
|
|
|
|
90
|
|
|
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
|
|
|
|
13
|
|
|
|
2,650
|
|
|
|
F&U Credit information Co., Ltd.
|
|
|
|
|
|
|
148
|
|
|
|
797
|
|
|
|
SK hynix Inc.
|
|
|
|
|
|
|
2,800
|
|
|
|
2,840
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,221
|
|
|
|
|
|
|
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,200
|
|
|
|
38,412
|
|
|
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,148
|
|
|
|
|
|
|
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
|
|
|
|
1,998
|
|
|
|
59
|
|
|
|
Others
|
|
|
|
|
|
|
543
|
|
|
|
1,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,569
|
|
|
|
43,914
|
|
|
|
7,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
|
|
|
|
897
|
|
|
|
27,282
|
|
|
|
SK C&C Co., Ltd.
|
|
|
|
|
|
|
1,393
|
|
|
|
121,145
|
|
|
|
SK Networks. Co., Ltd.
|
|
|
|
|
|
|
2,608
|
|
|
|
238,351
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
|
|
|
|
16
|
|
|
|
2,922
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
|
|
|
|
321
|
|
|
|
3,037
|
|
|
|
SK innovation co., ltd.
|
|
|
|
|
|
|
1,641
|
|
|
|
271
|
|
|
|
SK Energy Co., Ltd.
|
|
|
|
|
|
|
4,781
|
|
|
|
79
|
|
|
|
SK Gas Co., Ltd.
|
|
|
|
|
|
|
2,143
|
|
|
|
47
|
|
|
|
Others
|
|
|
|
|
|
|
2,813
|
|
|
|
9,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,613
|
|
|
|
402,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
24,569
|
|
|
|
60,617
|
|
|
|
410,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
As of December 31, 2015, there are no collateral or guarantee provided by the Group to related parties nor by related parties to the Group.
|
(6)
|
M&Service Co., Ltd., a subsidiary of the Parent Company, entered into performance agreement with SK Energy Co., Ltd. and provides a blank note to SK Energy Co., Ltd., with regard to this transaction.
|
(7)
|
During the year ended December 31, 2014, the Group acquired convertible bonds with a face value of
W
6,000 million from Health Connect Co., Ltd. at the face value. During the year ended December 31,
2015, the Parent Company exercised the conversion right for the convertible bonds of Health Connect Co., Ltd. As a result of this transaction, investments in associates have increased by
W
5,900 million.
|
(8)
|
As of December 31, 2015 the Parent Company has established a right of pledge on its capital investment for Entrix Co., Ltd., a subsidiary of the Parent Company, amounting to
W
10,000 million.
|
(9)
|
There were additional investments in associates and joint ventures during the year ended December 31, 2015. (See Note 12)
|
102
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
W
10,193 million as of December 31, 2015.
SK Broadband Co., Ltd., a subsidiary of the Parent Company, has guaranteed for employees borrowings relating to employee stock ownership
and provided short-term financial instruments amounting to
W
1,219 million as collateral as of December 31, 2015.
|
(2)
|
Legal claims and litigations
|
As of December 31, the Group is involved in various legal claims
and litigation. Provision recognized in relation to these claims and litigation is immaterial. For those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation for these
matters, nor is it expected any of these claims or litigation will have a significant impact on the Groups financial position or operating results in the event an outflow of resources is ultimately necessary.
PS&Marketing Corporation, a subsidiary of the Parent Company, obtained
W
3,000 million of payment guarantees from Shinhan Bank, in relation to handsets purchased from the Apple Computer Korea Ltd.
103
38.
|
Statements of Cash Flows
|
|
(1)
|
Adjustments for income and expenses from operating activities for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Interest income
|
|
W
|
(45,884
|
)
|
|
|
(60,006
|
)
|
Dividend
|
|
|
(16,102
|
)
|
|
|
(13,048
|
)
|
Gain on foreign currency translation
|
|
|
(5,090
|
)
|
|
|
(6,277
|
)
|
Gain on disposal of long-term investment securities
|
|
|
(10,786
|
)
|
|
|
(13,994
|
)
|
Gain on valuation of derivatives
|
|
|
(1,927
|
)
|
|
|
(8,713
|
)
|
Gain on settlement of derivatives
|
|
|
|
|
|
|
(7,998
|
)
|
Gain related to investments in subsidiaries and associates, net
|
|
|
(786,140
|
)
|
|
|
(906,338
|
)
|
Gain on disposal of property and equipment and intangible assets
|
|
|
(7,140
|
)
|
|
|
(8,792
|
)
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
(5,188
|
)
|
|
|
|
|
Other income
|
|
|
(7,577
|
)
|
|
|
(608
|
)
|
Interest expenses
|
|
|
297,662
|
|
|
|
323,910
|
|
Loss on foreign currency translation
|
|
|
4,750
|
|
|
|
5,079
|
|
Loss on disposal of long-term investment securities
|
|
|
2,599
|
|
|
|
2,694
|
|
Other finance costs
|
|
|
21,787
|
|
|
|
24,533
|
|
Loss on valuation of derivatives
|
|
|
|
|
|
|
10
|
|
Loss on settlement of derivatives
|
|
|
4,845
|
|
|
|
672
|
|
Income tax expense
|
|
|
519,480
|
|
|
|
454,508
|
|
Expense related to defined benefit plan
|
|
|
110,021
|
|
|
|
112,717
|
|
Depreciation and amortization
|
|
|
2,993,486
|
|
|
|
2,891,870
|
|
Bad debt expenses
|
|
|
60,450
|
|
|
|
45,754
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
21,392
|
|
|
|
32,950
|
|
Impairment loss on property and equipment and intangible assets
|
|
|
35,845
|
|
|
|
47,489
|
|
Loss relating to financial assets at fair value through profit or loss
|
|
|
|
|
|
|
1,352
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
526
|
|
|
|
10,370
|
|
Bad debt for accounts receivable - other
|
|
|
15,323
|
|
|
|
17,943
|
|
Impairment loss on other investment securities
|
|
|
42,966
|
|
|
|
22,749
|
|
Other expenses
|
|
|
4,845
|
|
|
|
10,169
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,250,143
|
|
|
|
2,978,995
|
|
|
|
|
|
|
|
|
|
|
104
38.
|
Statements of Cash Flows, Continued
|
|
(2)
|
Changes in assets and liabilities from operating activities for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
Accounts receivable - trade
|
|
W
|
7,554
|
|
|
|
(168,839
|
)
|
Accounts receivable - other
|
|
|
(11,108
|
)
|
|
|
(52,137
|
)
|
Accrued income
|
|
|
116
|
|
|
|
14
|
|
Advance payments
|
|
|
(35,906
|
)
|
|
|
(62,873
|
)
|
Prepaid expenses
|
|
|
(40,464
|
)
|
|
|
(36,808
|
)
|
V.A.T. refund receivable
|
|
|
1,385
|
|
|
|
7,200
|
|
Inventories
|
|
|
(7,814
|
)
|
|
|
(171
|
)
|
Long-term accounts receivables - other
|
|
|
|
|
|
|
80
|
|
Guarantee deposits
|
|
|
(11,238
|
)
|
|
|
(12,699
|
)
|
Accounts payable - trade
|
|
|
12,442
|
|
|
|
(37,790
|
)
|
Accounts payable - other
|
|
|
(107,114
|
)
|
|
|
(296,875
|
)
|
Advanced receipts
|
|
|
6,421
|
|
|
|
20,701
|
|
Withholdings
|
|
|
(191,209
|
)
|
|
|
306,515
|
|
Deposits received
|
|
|
(9,661
|
)
|
|
|
(4,395
|
)
|
Accrued expenses
|
|
|
(28,845
|
)
|
|
|
(79,831
|
)
|
V.A.T. payable
|
|
|
3,494
|
|
|
|
2,711
|
|
Unearned revenue
|
|
|
(115,187
|
)
|
|
|
(140,295
|
)
|
Provisions
|
|
|
(30,562
|
)
|
|
|
(38,469
|
)
|
Long-term provisions
|
|
|
(4,447
|
)
|
|
|
29,532
|
|
Plan assets
|
|
|
(67,831
|
)
|
|
|
(96,847
|
)
|
Retirement benefit payment
|
|
|
(58,513
|
)
|
|
|
(46,531
|
)
|
Others
|
|
|
2,753
|
|
|
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(685,734
|
)
|
|
|
(707,333
|
)
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Significant non-cash transactions for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Transfer of construction in progress to property and equipment, and intangible assets
|
|
W
|
2,002,231
|
|
|
|
2,238,620
|
|
Transfer of other property and equipment and others to construction in progress
|
|
|
730,469
|
|
|
|
1,090,954
|
|
Accounts payable - other related to acquisition of property and equipment and intangible assets
|
|
|
39,973
|
|
|
|
(184,614
|
)
|
105
|
|
|
|
|
SK TELECOM CO., LTD.
Separate Financial Statements
December 31, 2015 and 2014
(With Independent Auditors Report Thereon)
|
Contents
Independent Auditors Report
Based on a report originally issued in Korean
To The
Board of Directors and Shareholders
SK Telecom Co., Ltd.:
We have audited the accompanying separate financial statements of SK Telecom Co., Ltd. (the Company) which comprise the separate statements of
financial position as at December 31, 2015 and 2014, the separate statements of income, comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other
explanatory information.
Managements Responsibility for the Separate Financial Statements
Management is responsible for the preparation and fair presentation of these separate financial statements in accordance with Korean International Financial
Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to
express an opinion on these separate financial statements based on our audits. We conducted our audits in accordance with Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the separate financial statements are free from material misstatement.
An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the separate financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the separate financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the separate financial statements.
We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the separate financial statements present fairly, in all material respects, the separate financial position of the Company as at December 31,
2015 and 2014 and of its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards.
Other Matter
The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied
in other countries.
KPMG Samjong Accounting Corp.
Seoul,
Korea
February 23, 2016
|
This report is effective as of February 23, 2016, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date
and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been
updated to reflect the impact of such subsequent events or circumstances, if any.
|
2
SK TELECOM CO., LTD.
Separate Statements of Financial Position
As of December 31,
2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
29,30
|
|
|
W
|
431,666
|
|
|
|
248,311
|
|
Short-term financial instruments
|
|
|
5,29,30
|
|
|
|
121,500
|
|
|
|
143,000
|
|
Short-term investment securities
|
|
|
7,29,30
|
|
|
|
92,262
|
|
|
|
197,161
|
|
Accounts receivable - trade, net
|
|
|
6,29,30,31
|
|
|
|
1,528,751
|
|
|
|
1,559,281
|
|
Short-term loans, net
|
|
|
6,29,30,31
|
|
|
|
47,741
|
|
|
|
67,989
|
|
Accounts receivable - other, net
|
|
|
6,29,30,31
|
|
|
|
264,741
|
|
|
|
305,990
|
|
Prepaid expenses
|
|
|
|
|
|
|
92,220
|
|
|
|
86,070
|
|
Inventories, net
|
|
|
|
|
|
|
45,991
|
|
|
|
23,694
|
|
Advanced payments and other
|
|
|
6,29,30
|
|
|
|
88,657
|
|
|
|
58,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
|
|
|
|
|
2,713,529
|
|
|
|
2,689,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financial instruments
|
|
|
5,29,30
|
|
|
|
10,062
|
|
|
|
69
|
|
Long-term investment securities
|
|
|
7,29,30
|
|
|
|
726,505
|
|
|
|
608,797
|
|
Investments in subsidiaries and associates
|
|
|
8
|
|
|
|
8,810,548
|
|
|
|
8,181,769
|
|
Property and equipment, net
|
|
|
9,31
|
|
|
|
7,442,280
|
|
|
|
7,705,906
|
|
Goodwill
|
|
|
10
|
|
|
|
1,306,236
|
|
|
|
1,306,236
|
|
Intangible assets, net
|
|
|
11
|
|
|
|
1,766,069
|
|
|
|
1,928,169
|
|
Long-term loans, net
|
|
|
6,29,30,31
|
|
|
|
35,080
|
|
|
|
38,457
|
|
Long-term prepaid expenses
|
|
|
|
|
|
|
29,802
|
|
|
|
28,551
|
|
Guarantee deposits
|
|
|
5,6,29,30,31
|
|
|
|
166,656
|
|
|
|
156,807
|
|
Long-term derivative financial assets
|
|
|
16,29,30
|
|
|
|
139,923
|
|
|
|
67,728
|
|
Other non-current assets
|
|
|
|
|
|
|
250
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Current Assets
|
|
|
|
|
|
|
20,433,411
|
|
|
|
20,022,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
W
|
23,146,940
|
|
|
|
22,712,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
3
SK TELECOM CO., LTD.
Separate Statements of Financial Position, Continued
As of
December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
12,29,30
|
|
|
W
|
230,000
|
|
|
|
200,000
|
|
Current installments of long-term debt, net
|
|
|
12,29,30
|
|
|
|
592,637
|
|
|
|
211,863
|
|
Current installments of long-term payables other
|
|
|
13,29,30
|
|
|
|
120,185
|
|
|
|
189,389
|
|
Accounts payable other
|
|
|
29,30,31
|
|
|
|
927,170
|
|
|
|
1,086,485
|
|
Withholdings
|
|
|
29,30
|
|
|
|
607,690
|
|
|
|
801,119
|
|
Accrued expenses
|
|
|
29,30
|
|
|
|
540,770
|
|
|
|
615,488
|
|
Income tax payable
|
|
|
26
|
|
|
|
375,189
|
|
|
|
91,315
|
|
Unearned revenue
|
|
|
|
|
|
|
10,014
|
|
|
|
92,783
|
|
Provisions
|
|
|
14
|
|
|
|
37,551
|
|
|
|
50,456
|
|
Advanced receipts
|
|
|
|
|
|
|
50,100
|
|
|
|
39,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
|
|
|
|
3,491,306
|
|
|
|
3,378,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures, excluding current installments, net
|
|
|
12,29,30
|
|
|
|
5,033,495
|
|
|
|
4,655,137
|
|
Long-term borrowings, excluding current installments
|
|
|
12,29,30
|
|
|
|
72,554
|
|
|
|
80,147
|
|
Long-term payables - other
|
|
|
13,29,30
|
|
|
|
550,964
|
|
|
|
657,001
|
|
Long-term unearned revenue
|
|
|
|
|
|
|
2,768
|
|
|
|
19,544
|
|
Defined benefit liabilities
|
|
|
15
|
|
|
|
4,006
|
|
|
|
15,555
|
|
Long-term derivative financial liabilities
|
|
|
16,29,30
|
|
|
|
89,296
|
|
|
|
130,889
|
|
Long-term provisions
|
|
|
14
|
|
|
|
20,055
|
|
|
|
27,676
|
|
Deferred tax liabilities
|
|
|
26
|
|
|
|
56,274
|
|
|
|
144,876
|
|
Other non-current liabilities
|
|
|
29,30
|
|
|
|
46,762
|
|
|
|
61,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Current Liabilities
|
|
|
|
|
|
|
5,876,174
|
|
|
|
5,792,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
9,367,480
|
|
|
|
9,170,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,17
|
|
|
|
44,639
|
|
|
|
44,639
|
|
Capital surplus and other capital adjustments
|
|
|
17,18,19
|
|
|
|
369,446
|
|
|
|
433,894
|
|
Retained earnings
|
|
|
20,21
|
|
|
|
13,418,603
|
|
|
|
12,996,790
|
|
Reserves
|
|
|
22
|
|
|
|
(53,228
|
)
|
|
|
66,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
|
|
|
13,779,460
|
|
|
|
13,542,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
|
|
|
W
|
23,146,940
|
|
|
|
22,712,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
4
SK TELECOM CO., LTD.
Separate Statements of Income
For the years ended December 31,
2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won except for per share data)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Operating revenue:
|
|
|
31
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
W
|
12,556,979
|
|
|
|
13,012,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense:
|
|
|
31
|
|
|
|
|
|
|
|
|
|
Labor cost
|
|
|
|
|
|
|
694,666
|
|
|
|
588,635
|
|
Commissions paid
|
|
|
|
|
|
|
5,102,723
|
|
|
|
5,591,245
|
|
Depreciation and amortization
|
|
|
|
|
|
|
2,155,531
|
|
|
|
2,095,702
|
|
Network interconnection
|
|
|
|
|
|
|
720,879
|
|
|
|
771,786
|
|
Leased line
|
|
|
|
|
|
|
358,031
|
|
|
|
370,549
|
|
Advertising
|
|
|
|
|
|
|
175,776
|
|
|
|
213,605
|
|
Rent
|
|
|
|
|
|
|
403,317
|
|
|
|
377,112
|
|
Cost of products that have been resold
|
|
|
|
|
|
|
462,256
|
|
|
|
457,049
|
|
Other operating expenses
|
|
|
23
|
|
|
|
825,024
|
|
|
|
809,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,898,203
|
|
|
|
11,275,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
1,658,776
|
|
|
|
1,737,160
|
|
|
|
|
|
Finance income
|
|
|
25
|
|
|
|
246,394
|
|
|
|
82,276
|
|
Finance costs
|
|
|
25
|
|
|
|
(314,191
|
)
|
|
|
(293,338
|
)
|
Other non-operating income
|
|
|
24
|
|
|
|
15,277
|
|
|
|
37,422
|
|
Other non-operating expenses
|
|
|
24
|
|
|
|
(132,993
|
)
|
|
|
(184,177
|
)
|
Loss relating to investments in subsidiaries and associates, net
|
|
|
8
|
|
|
|
(3,819
|
)
|
|
|
(57,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
|
|
1,469,444
|
|
|
|
1,321,750
|
|
|
|
|
|
Income tax expense
|
|
|
26
|
|
|
|
362,683
|
|
|
|
293,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,106,761
|
|
|
|
1,028,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
27
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in won)
|
|
|
|
|
|
W
|
15,233
|
|
|
|
14,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (in won)
|
|
|
|
|
|
W
|
15,233
|
|
|
|
14,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
5
SK TELECOM CO., LTD.
Separate Statements of Comprehensive Income
For the years ended
December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,106,761
|
|
|
|
1,028,541
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit liabilities
|
|
|
15
|
|
|
|
386
|
|
|
|
(13,808
|
)
|
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
|
|
|
22
|
|
|
|
(121,528
|
)
|
|
|
(66,103
|
)
|
Net change in unrealized fair value of derivatives
|
|
|
16,22
|
|
|
|
1,402
|
|
|
|
(38,175
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss for the year
|
|
|
|
|
|
|
(119,740
|
)
|
|
|
(118,086
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
|
|
|
|
W
|
987,021
|
|
|
|
910,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
6
SK TELECOM CO., LTD.
Separate Statements of Changes in Equity
For the years ended
December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Capital surplus and other capital adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
Paid-in
surplus
|
|
|
Treasury
stock
|
|
|
Loss on disposal of
treasury stock
|
|
|
Hybrid
bond
|
|
|
Other
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Total equity
|
|
Balance, January 1, 2014
|
|
W
|
44,639
|
|
|
|
2,915,887
|
|
|
|
(2,139,683
|
)
|
|
|
(18,087
|
)
|
|
|
398,518
|
|
|
|
(722,741
|
)
|
|
|
12,665,699
|
|
|
|
171,176
|
|
|
|
13,315,408
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(666,802
|
)
|
|
|
|
|
|
|
(666,802
|
)
|
Interest on hybrid bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,028,541
|
|
|
|
|
|
|
|
1,028,541
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,808
|
)
|
|
|
(104,278
|
)
|
|
|
(118,086
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,014,733
|
|
|
|
(104,278
|
)
|
|
|
910,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014
|
|
W
|
44,639
|
|
|
|
2,915,887
|
|
|
|
(2,139,683
|
)
|
|
|
(18,087
|
)
|
|
|
398,518
|
|
|
|
(722,741
|
)
|
|
|
12,996,790
|
|
|
|
66,898
|
|
|
|
13,542,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2015
|
|
W
|
44,639
|
|
|
|
2,915,887
|
|
|
|
(2,139,683
|
)
|
|
|
(18,087
|
)
|
|
|
398,518
|
|
|
|
(722,741
|
)
|
|
|
12,996,790
|
|
|
|
66,898
|
|
|
|
13,542,221
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(668,494
|
)
|
|
|
|
|
|
|
(668,494
|
)
|
Interest on hybrid bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
(16,840
|
)
|
Acquisition of treasury stock
|
|
|
|
|
|
|
|
|
|
|
(490,192
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(490,192
|
)
|
Disposal of treasury stock
|
|
|
|
|
|
|
|
|
|
|
369,249
|
|
|
|
18,087
|
|
|
|
|
|
|
|
38,408
|
|
|
|
|
|
|
|
|
|
|
|
425,744
|
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,106,761
|
|
|
|
|
|
|
|
1,106,761
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
386
|
|
|
|
(120,126
|
)
|
|
|
(119,740
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,107,147
|
|
|
|
(120,126
|
)
|
|
|
987,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2015
|
|
W
|
44,639
|
|
|
|
2,915,887
|
|
|
|
(2,260,626
|
)
|
|
|
|
|
|
|
398,518
|
|
|
|
(684,333
|
)
|
|
|
13,418,603
|
|
|
|
(53,228
|
)
|
|
|
13,779,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
7
SK TELECOM CO., LTD.
Separate Statements of Cash Flows
For the years ended December
31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,106,761
|
|
|
|
1,028,541
|
|
Adjustments for income and expenses
|
|
|
33
|
|
|
|
2,811,718
|
|
|
|
2,886,389
|
|
Changes in assets and liabilities related to operating activities
|
|
|
33
|
|
|
|
(699,106
|
)
|
|
|
(334,898
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
3,219,373
|
|
|
|
3,580,032
|
|
Interest received
|
|
|
|
|
|
|
18,786
|
|
|
|
20,954
|
|
Dividends received
|
|
|
|
|
|
|
59,462
|
|
|
|
13,048
|
|
Interest paid
|
|
|
|
|
|
|
(221,309
|
)
|
|
|
(224,119
|
)
|
Income tax paid
|
|
|
|
|
|
|
(129,183
|
)
|
|
|
(168,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
2,947,129
|
|
|
|
3,221,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in short-term investment securities, net
|
|
|
|
|
|
|
105,158
|
|
|
|
|
|
Decrease in short-term financial instruments, net
|
|
|
|
|
|
|
21,500
|
|
|
|
30,500
|
|
Collection of short-term loans
|
|
|
|
|
|
|
387,922
|
|
|
|
197,925
|
|
Decrease in long-term financial instruments
|
|
|
|
|
|
|
7
|
|
|
|
2,522
|
|
Proceeds from disposals of long-term investment securities
|
|
|
|
|
|
|
22,106
|
|
|
|
54,218
|
|
Proceeds from disposals of investments in subsidiaries and associates
|
|
|
|
|
|
|
185,557
|
|
|
|
|
|
Proceeds from disposals of property and equipment
|
|
|
|
|
|
|
23,372
|
|
|
|
25,677
|
|
Proceeds from disposals of intangible assets
|
|
|
|
|
|
|
343
|
|
|
|
1,127
|
|
Proceeds from disposals of assets held for sale
|
|
|
|
|
|
|
|
|
|
|
3,667
|
|
Collection of long-term loans
|
|
|
|
|
|
|
|
|
|
|
3,660
|
|
Proceeds from disposals of other non-current assets, net
|
|
|
|
|
|
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
745,965
|
|
|
|
319,389
|
|
Cash outflows for investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in short-term investment securities, net
|
|
|
|
|
|
|
|
|
|
|
(94,802
|
)
|
Increase in short-term loans
|
|
|
|
|
|
|
(364,687
|
)
|
|
|
(195,700
|
)
|
Increase in long-term financial instruments
|
|
|
|
|
|
|
(10,000
|
)
|
|
|
(2,522
|
)
|
Acquisitions of long-term investment securities
|
|
|
|
|
|
|
(296,254
|
)
|
|
|
(28,801
|
)
|
Acquisitions of investments in subsidiaries and associates
|
|
|
|
|
|
|
(306,382
|
)
|
|
|
(210,060
|
)
|
Acquisitions of property and equipment
|
|
|
|
|
|
|
(1,752,804
|
)
|
|
|
(2,319,016
|
)
|
Acquisitions of intangible assets
|
|
|
|
|
|
|
(77,830
|
)
|
|
|
(91,060
|
)
|
Increase in long-term loans
|
|
|
|
|
|
|
|
|
|
|
(45
|
)
|
Increase in other non-current assets, net
|
|
|
|
|
|
|
(190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
(2,808,147
|
)
|
|
|
(2,942,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
W
|
(2,062,182
|
)
|
|
|
(2,622,617
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
8
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Cash inflows from financing activities:
|
|
|
|
|
|
|
|
|
Increase in short-term borrowings, net
|
|
W
|
30,000
|
|
|
|
|
|
Proceeds from long-term borrowings
|
|
|
|
|
|
|
3,552
|
|
Proceeds from issuance of debentures
|
|
|
897,029
|
|
|
|
797,364
|
|
Cash inflows from settlement of derivatives
|
|
|
175
|
|
|
|
119
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
927,204
|
|
|
|
801,035
|
|
Cash outflows for financing activities:
|
|
|
|
|
|
|
|
|
Decrease in short-term borrowings, net
|
|
|
|
|
|
|
(60,000
|
)
|
Repayments of long-term borrowings
|
|
|
(12,814
|
)
|
|
|
(12,814
|
)
|
Repayments of long-term account payables - other
|
|
|
(190,134
|
)
|
|
|
(207,668
|
)
|
Repayments of debentures
|
|
|
(250,000
|
)
|
|
|
(629,940
|
)
|
Payments of cash dividends
|
|
|
(668,494
|
)
|
|
|
(666,802
|
)
|
Payments of interest on hybrid bond
|
|
|
(16,840
|
)
|
|
|
(16,840
|
)
|
Acquisitions of treasury stock
|
|
|
(490,192
|
)
|
|
|
|
|
Cash outflows from settlement of derivatives
|
|
|
(150
|
)
|
|
|
(5,882
|
)
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
(1,628,624
|
)
|
|
|
(1,599,946
|
)
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(701,420
|
)
|
|
|
(798,911
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
183,527
|
|
|
|
(200,095
|
)
|
Cash and cash equivalents at beginning of the year
|
|
|
248,311
|
|
|
|
448,459
|
|
Effects of exchange rate changes on cash and cash equivalents
|
|
|
(172
|
)
|
|
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the year
|
|
W
|
431,666
|
|
|
|
248,311
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
9
SK Telecom Co., Ltd. (the Company) was incorporated in
March 1984 under the laws of the Republic of Korea (Korea) to engage in providing cellular telephone communication services in Korea. The Company mainly provides wireless telecommunications in Korea. The Companys 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, 2015, the Companys total issued shares are held by the following:
|
|
|
|
|
|
|
|
|
|
|
Number of
shares
|
|
|
Percentage of
total shares issued (%)
|
|
SK Holdings Co., Ltd.(*)
|
|
|
20,363,452
|
|
|
|
25.22
|
|
National Pension Service
|
|
|
6,963,591
|
|
|
|
8.63
|
|
Institutional investors and other minority stockholders
|
|
|
43,282,117
|
|
|
|
53.60
|
|
Treasury stock
|
|
|
10,136,551
|
|
|
|
12.55
|
|
|
|
|
|
|
|
|
|
|
Total number of shares
|
|
|
80,745,711
|
|
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
(*)
|
During the year ended December 31, 2015, SK C&C Co., Ltd., the ultimate controlling entitys investee accounted using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Company,
and changed its name to SK, Holdings Co., Ltd.
|
|
(1)
|
Statement of compliance
|
These separate financial statements were prepared in accordance with
Korean International Financial Reporting Standards (K-IFRS), as prescribed in the
Act on External Audits of Stock Companies in the Republic of Korea
.
These financial statements are separate financial statements prepared in accordance with K-IFRS No.1027, Separate Financial
Statements presented by a parent, an investor with joint control of, of significant influence over, an investee, in which the investments are accounted for at cost.
The separate financial statements were authorized for issuance by the Board of Directors on February 3, 2016, which will be submitted for
approval at the shareholders meeting to be held on March 18, 2016.
The separate financial statements have been prepared on the historical
cost basis, except for the following material items in the separate statement of financial position:
|
|
|
derivative financial instruments are measured at fair value
|
|
|
|
financial instruments at fair value through profit or loss are measured at fair value
|
|
|
|
available-for-sale financial assets are measured at fair value
|
|
|
|
liabilities for defined benefit plans are 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
|
These separate financial statements are presented in
Korean won, which is the Companys functional currency and the currency of the primary economic environment in which the Company operates.
10
2.
|
Basis of Presentation, Continued
|
|
(4)
|
Use of estimates and judgments
|
The preparation of the separate financial statements in
conformity with K-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
financial statements is included in Note 4 for the following areas: revenue 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 Companys accounting policies and disclosures require the measurement of fair values, for both financial and non-financial
assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including
Level 3 fair values, and reports directly to the finance executive.
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 K-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 Company 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).
|
|
|
|
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
11
2.
|
Basis of Presentation, Continued
|
|
(4)
|
Use of estimates and judgments, continued
|
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 Company 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 30.
|
(5)
|
Common control transactions
|
SK Holdings Co., Ltd. (the Ultimate Controlling
Entity) is the Ultimate Controlling Entity of the Company because it controls the Company. Accordingly, gains and losses from business acquisitions and dispositions involving entities that are under the control of the Ultimate Controlling
Entity are accounted for as common control transactions within equity.
3.
|
Changes in Accounting Policies
|
Except for the changes below, the Company has
consistently applied the accounting policies set out in Note 4 to all periods presented in these financial statements.
The Company has
adopted the following amendments to standards with a date of initial application of January 1, 2015.
1) K-IFRS 1019 Employee
Benefits Employee contributions
Amendments to K-IFRS 1019 introduced a practical expedient to accounting for defined benefit
plan, when employees or third parties pay contributions if certain criteria are met. According to the amendments, the entity is permitted to recognize those contributions as a reduction of the service cost in the period in which the related service
is rendered, instead of forecast future contributions from employees or third parties and attribute them to periods or service as negative benefits.
There is no material impact of the application of this amendment on the Companys financial statements.
12
4.
|
Significant Accounting Policies
|
The significant accounting policies applied by the
Company in preparation of its separate financial statements in accordance with K-IFRSs are included below. The accounting policies set out below have been applied consistently to all periods presented in these separate financial statements except
for those as described in Note 3.
The Company presents disclosures relating to operating segments on its
separate financial statements in accordance with K-IFRS No. 1108, Operating Segments and such disclosures are not separately disclosed on these separate financial statements.
|
(2)
|
Investments in subsidiaries and associates
|
These separate financial statements are prepared
and presented in accordance with K-IFRS No. 1027, Separate Financial Statements. The Company applied the cost method to investments in subsidiaries and associates in accordance with K-IFRS No. 1027. Dividends from a subsidiary or
associate are recognized in profit or loss when the right to receive the dividend is established.
|
(3)
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Cash and cash equivalents
|
Cash and cash equivalents comprise cash balances and call deposits
with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments.
Inventories are stated at the acquisition cost using the average method. During
the period, a perpetual inventory systems is used to value inventories, 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. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses.
13
4.
|
Significant Accounting Policies, Continued
|
|
(5)
|
Non-derivative financial assets
|
The Company recognizes and measures non-derivative financial
assets by the following four categories: financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets. The Company recognizes financial assets in the separate
statement of financial position when the Company becomes a party to the contractual provisions of the instrument.
Upon initial
recognition, non-derivative financial assets are measured at their fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the assets acquisition or
issuance.
|
(i)
|
Financial assets at fair value through profit or loss
|
A financial asset is classified as
financial assets are classified 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 investments
|
A non-derivative financial asset with a fixed or determinable
payment and fixed maturity, for which the Company has the positive intention and ability to hold to maturity, are classified as held-to-maturity investments. Subsequent to initial recognition, held-to-maturity investments are measured at amortized
cost using the effective interest rate method.
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(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 financial assets
|
Available-for-sale financial assets are those
non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held-to-maturity investments or loans and receivables. Subsequent to initial recognition, they
are measured at fair value, which changes in fair value, net of any tax effect, recorded in other comprehensive income in equity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured are measured at cost.
14
4.
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Significant Accounting Policies, Continued
|
|
(5)
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Non-derivative financial assets, Continued
|
|
(v)
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De-recognition of financial assets
|
The Company 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 Company is recognized as a separate asset or liability. If the Company retains substantially all the risks and rewards of ownership of the transferred
financial assets, the Company continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received.
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(vi)
|
Offsetting between financial assets and financial liabilities
|
Financial assets and financial
liabilities are offset and the net amount is presented in the statement of financial position only when the Company 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.
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(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.
The Company holds forward exchange contracts, interest rate swaps, currency
swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Company designated 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 Company 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 statement of income.
The Company 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.
15
4.
|
Significant Accounting Policies, Continued
|
|
(6)
|
Derivative financial instruments, including hedge accounting, Continued
|
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 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.
16
4.
|
Significant Accounting Policies, Continued
|
|
(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:
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|
|
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 borrowers financial difficulty, granting to the borrower a concession that the lender would not otherwise consider;
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|
|
|
it becoming probable that the borrower will enter bankruptcy or other financial reorganization;
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|
|
|
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 should be 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 assets original effective interest rate. If it is not practicable to obtain the
instruments estimated future cash flows, impairment losses would be measured by using prices from any observable current market transactions. The Company can recognize impairment losses directly or establish a provision to cover impairment
losses. 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 debtors credit rating), the
previously recognized impairment loss shall be reversed either directly or by adjusting an allowance account.
17
4.
|
Significant Accounting Policies, Continued
|
|
(7)
|
Impairment of financial assets, Continued
|
|
(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 shall not be reversed.
|
(iii)
|
Available-for-sale financial assets
|
When a decline in the fair value of an available-for-sale
financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment even though the financial asset has not been derecognized. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale shall not be reversed through
profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss shall be reversed, with the amount of the reversal recognized in profit or loss.
|
(8)
|
Property, plant and equipment
|
Property, plant and equipment are initially measured at cost and
after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant 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, plant and equipment is carried at its cost less
any accumulated depreciation and any accumulated impairment losses.
18
4.
|
Significant Accounting Policies, Continued
|
|
(8)
|
Property, plant and equipment, Continued
|
Subsequent costs are recognized in the carrying amount of property, plant and equipment at
cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Company 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 servicing are recognized in profit or loss as incurred.
Property, plant and equipment, except for land, are
depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the assets future economic benefits are expected to be consumed. A component that is significant compared to the total cost of
property, plant and equipment is depreciated over its separate useful life.
Gains and losses on disposal of an item of property, plant and
equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized as other non-operating income (loss).
The estimated useful lives of the Companys property, plant and equipment are as follows:
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|
|
|
|
Useful lives (years)
|
|
|
Buildings and structures
|
|
15, 30
|
Machinery
|
|
3 ~ 6
|
Other property, plant and equipment (Other PP&E)
|
|
4 ~ 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.
The Company 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 and inventories that are manufactured or otherwise produced over a short period of time 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 Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company 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 Company borrows
funds generally and uses them for the purpose of obtaining a qualifying asset, the Company shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset. The
capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Company 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 Company capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period.
19
4.
|
Significant Accounting Policies, Continued
|
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, as there are no foreseeable limits to the periods over
which club memberships are expected to be available for use, this intangible asset is determined as having indefinite useful lives and not amortized.
The estimated useful lives of the Companys intangible assets are as follows:
|
|
|
|
|
Useful lives (years)
|
|
|
Frequency use rights
|
|
6.3 ~ 13.1
|
Land use rights
|
|
5
|
Industrial rights
|
|
5, 10
|
Development costs
|
|
5
|
Facility usage rights
|
|
10, 20
|
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,
undertaken with the prospect of gaining new scientific or technical knowledge and understanding, 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 Company 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.
20
4.
|
Significant Accounting Policies, Continued
|
Government grants are not recognized unless there is reasonable assurance
that the Company will comply with the grants conditions and that the grant will be received.
|
(i)
|
Grants related to assets
|
Government grants whose primary condition is that the Company
purchase, construct or otherwise acquire long-term assets 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 Company for
expenses incurred are deducted from the related expenses.
|
(12)
|
Impairment of non-financial assets
|
The carrying amounts of the Companys non-financial
assets, other than assets arising from employee benefits, inventories, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such
indication exists, then the assets recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are
tested for impairment annually by comparing their recoverable amount to their carrying amount.
The Company estimates the recoverable
amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Company 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 discount rate that reflect current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated
future cash flows expected to be generated by the asset or CGU.
An impairment loss is recognized in profit or loss if the carrying amount
of an asset or a CGU 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 goodwill 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 assets 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.
21
4.
|
Significant Accounting Policies, Continued
|
The Company classifies and accounts for leases as either a finance or operating lease,
depending on the terms. Leases where the Company assumes substantially all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.
At the commencement of the lease term, the Company recognizes as finance assets
and finance liabilities in its separate statements 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 lessee adopts for depreciable assets that are owned. If there is no reasonable certainty that the lessee 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 Company reviews to determine whether the leased asset may be impaired.
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 shall be 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 or assets (the asset) and the arrangement conveys a right to use
the asset.
At inception or reassessment of the arrangement, the Company 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 Company concludes for a financial lease that it is impracticable to separate the payments reliably, the Company 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 shall be reduced as payments are made and an imputed finance charge on the liability recognized
using the purchasers incremental borrowing rate of interest.
22
4.
|
Significant Accounting Policies, Continued
|
|
(14)
|
Non-current assets held for sale
|
Non-current assets, or disposal groups comprising assets and
liabilities, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. In order to be classified as held for sale, the asset (or disposal group) must be available for immediate
sale in its present condition and its sale must be highly probable. The assets or disposal group that are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. The Company
recognizes an impairment loss for any initial or subsequent write-down of an asset (or disposal group) to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss
previously recognized in accordance with K-IFRS No. 1036, Impairment of Assets.
A non-current asset that is classified as held
for sale or part of a disposal group classified as held for sale is not depreciated (or amortized).
|
(15)
|
Non-derivative financial liabilities
|
The Company classifies non-derivative financial
liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Company recognizes financial
liabilities in the separate statement of financial position when the Company becomes a party to the contractual provisions of the financial liability.
|
(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 acquisition are recognized in profit or loss as incurred.
|
(ii)
|
Other financial liabilities
|
Non-derivative financial liabilities other than financial
liabilities at fair value through profit or loss are classified as other financial liabilities. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the
acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
The Company derecognizes a financial liability from the separate statements of financial position when it is extinguished (i.e. when the
obligation specified in the contract is discharged, cancelled or expires).
23
4.
|
Significant Accounting Policies, Continued
|
|
(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 Company during an accounting period, the Company 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, and are calculated at the present value of the amount of future benefit that employees have earned in return for their service in the
current and prior periods. Any changes from remeasurements are recognized through profit or loss in the period in which they arise.
|
(iii)
|
Retirement benefits: defined contribution plans
|
When an employee has rendered service to the
Company during a period, the Company 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 Company 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
|
As of the end of reporting period, defined benefits
liabilities relating to defined benefit plans are recognized as 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 Company 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 comprise of actuarial gains and losses, the return on plan assets excluding
amounts included in net interest on the net defined benefit liability, and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and recognized in other comprehensive income.
The Company 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 Company recognizes gain or loss on a settlement when the settlement of defined
benefit plan occurs.
24
4.
|
Significant Accounting Policies, Continued
|
The Company recognizes a liability and expense for termination benefits
at the earlier of the period when the Company can no longer withdraw the offer of those benefits and the period when the Company recognizes costs for a restructuring that involves the payment of termination benefits. If benefits are payable more
than 12 months after the reporting period, then they are discounted to their present value.
Provisions are recognized when the Company 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 shall be
recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be 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
shall be used only for expenditures for which the provision was originally recognized.
Transactions in foreign currencies are translated to the respective
functional currencies of Company entities 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 dates exchange
rate. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of
available-for-sale equity instruments, a financial liability designated as a hedge of the net investment in a foreign operation, or qualifying cash flow hedges, which are recognized in other comprehensive income. Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
25
4.
|
Significant Accounting Policies, Continued
|
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 Company repurchases its share capital, 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 not recognized as current profit or loss. If the Company acquires and retains treasury shares, the consideration paid or received is directly recognized in equity.
The Company recognizes a financial instrument issued by the Company as an equity
instrument if it does not include contractual obligation to deliver financial assets including cash to the counter party.
Revenue from the sale of goods, rendering of services or use of assets is measured at
the fair value of the consideration received or receivable. Returns, trade discounts and volume rebates, and are recognized as a reduction of revenue.
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. Revenues received for the activation of service are deferred and recognized over the average customer retention period.
Revenue from 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.
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.
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.
26
4.
|
Significant Accounting Policies, Continued
|
|
(iii)
|
Customer loyalty programmes
|
For customer loyalty programmes, 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 programmes 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 Company 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.
|
(22)
|
Finance income and finance costs
|
Finance income comprises interest income on funds invested
(including available-for-sale financial assets), dividend income, gains on the disposal of available-for-sale financial assets, changes in the fair value of financial assets at fair value through profit or loss, and gains on hedging instruments that
are recognized in profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Companys right to receive payment is
established.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the 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.
27
4.
|
Significant Accounting Policies, Continued
|
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 items recognized directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable profit or
loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since
the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.
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 Company recognizes a deferred tax liability for all taxable temporary differences
associated with investments in subsidiaries and associates, except to the extent that the Company 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 Company recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries and associates, 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.
The carrying amount of a
deferred tax asset is reviewed 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 Company 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 intend to settle 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.
28
4.
|
Significant Accounting Policies, Continued
|
The Company 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 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 convertible notes and share options granted to employees.
|
(25)
|
New standards and interpretations not yet adopted
|
The following new standards and amendments
to existing standards have been published and are mandatory for the Company for annual periods beginning on or after January 1, 2016, and the Company has not early adopted them.
As of December 31, 2015, management is in the process of evaluating the impact of applying these standards on its financial position and
results of operations.
|
3)
|
K-IFRS 1109 Financial Instruments
|
K-IFRS 1109, published in December 2015,
replaces the existing guidance in K-IFRS 1039, Financial Instruments: Recognition and Measurement. K-IFRS 1109 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating
impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from K-IFRS 1039. K-IFRS 1109 is effective for annual periods beginning on
or after January 1, 2018, with early adoption permitted.
|
4)
|
K-IFRS 1115 Revenue from Contracts with Customers
|
K-IFRS 1115, published in
December 2015, establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including K-IFRS 1018, Revenue, K-IFRS 1011 Construction Contracts and K-IFRS
2113 Customer Loyalty Programmes. K-IFRS 1115 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted.
|
5)
|
K-IFRS 1027 Separate Financial Statements
|
Amendments to K-IFRS 1027 introduced
equity accounting as a third option in the entitys separate financial statements, in addition to the existing cost and equity method options. This amendment is effective for annual periods beginning on or after January 1, 2016, with early
adoption permitted.
29
Deposits which are restricted in use as of December 31, 2015 and
2014 are summarized as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Short-term financial instruments
|
|
W
|
|
|
|
|
|
|
Charitable fund(*)
|
|
|
79,000
|
|
|
|
85,500
|
|
Long-term financial instruments
|
|
|
|
|
|
|
|
|
Charitable fund(*)
|
|
|
10,000
|
|
|
|
|
|
Other
|
|
|
62
|
|
|
|
69
|
|
Guarantee deposits
|
|
|
280
|
|
|
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
89,342
|
|
|
|
85,849
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Company established a trust fund for charitable purposes. Profits from the fund are donated to charitable institutions. As of December 31, 2015, the funds cannot be withdrawn.
|
6.
|
Trade and Other Receivables
|
|
(1)
|
Details of trade and other receivables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
Gross
amount
|
|
|
Allowances for
impairment
|
|
|
Carrying
amount
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
1,654,575
|
|
|
|
(125,824
|
)
|
|
|
1,528,751
|
|
Short-term loans
|
|
|
48,223
|
|
|
|
(482
|
)
|
|
|
47,741
|
|
Accounts receivable - other
|
|
|
323,870
|
|
|
|
(59,129
|
)
|
|
|
264,741
|
|
Accrued income
|
|
|
7,505
|
|
|
|
|
|
|
|
7,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,034,173
|
|
|
|
(185,435
|
)
|
|
|
1,848,738
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
54,322
|
|
|
|
(19,242
|
)
|
|
|
35,080
|
|
Guarantee deposits
|
|
|
166,656
|
|
|
|
|
|
|
|
166,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
220,978
|
|
|
|
(19,242
|
)
|
|
|
201,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,255,151
|
|
|
|
(204,677
|
)
|
|
|
2,050,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
Gross
amount
|
|
|
Allowances for
impairment
|
|
|
Carrying
amount
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
1,665,941
|
|
|
|
(106,660
|
)
|
|
|
1,559,281
|
|
Short-term loans
|
|
|
68,676
|
|
|
|
(687
|
)
|
|
|
67,989
|
|
Accounts receivable - other
|
|
|
366,821
|
|
|
|
(60,831
|
)
|
|
|
305,990
|
|
Accrued income
|
|
|
6,354
|
|
|
|
|
|
|
|
6,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,107,792
|
|
|
|
(168,178
|
)
|
|
|
1,939,614
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
60,130
|
|
|
|
(21,673
|
)
|
|
|
38,457
|
|
Guarantee deposits
|
|
|
156,807
|
|
|
|
|
|
|
|
156,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216,937
|
|
|
|
(21,673
|
)
|
|
|
195,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,324,729
|
|
|
|
(189,851
|
)
|
|
|
2,134,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
6.
|
Trade and Other Receivables, Continued
|
|
(2)
|
The movement in allowance for doubtful accounts of trade and other receivables for the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Balance at January 1
|
|
W
|
189,851
|
|
|
|
174,480
|
|
Increase of bad debt allowances
|
|
|
53,043
|
|
|
|
43,186
|
|
Write-offs
|
|
|
(58,003
|
)
|
|
|
(49,926
|
)
|
Collection of receivables previously written-off
|
|
|
19,786
|
|
|
|
22,111
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31
|
|
W
|
204,677
|
|
|
|
189,851
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of overdue but not impaired, and impaired trade and other receivable as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
Neither overdue nor impaired
|
|
W
|
1,188,225
|
|
|
|
488,244
|
|
|
|
1,182,627
|
|
|
|
553,014
|
|
Overdue but not impaired
|
|
|
45,146
|
|
|
|
|
|
|
|
47,663
|
|
|
|
|
|
Impaired
|
|
|
421,204
|
|
|
|
112,332
|
|
|
|
435,651
|
|
|
|
105,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,654,575
|
|
|
|
600,576
|
|
|
|
1,665,941
|
|
|
|
658,788
|
|
Allowances for doubtful accounts
|
|
|
(125,824
|
)
|
|
|
(78,853
|
)
|
|
|
(106,660
|
)
|
|
|
(83,191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,528,751
|
|
|
|
521,723
|
|
|
|
1,559,281
|
|
|
|
575,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company 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, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Less than 1 month
|
|
W
|
5,550
|
|
|
|
12,045
|
|
1 ~ 3 months
|
|
|
9,507
|
|
|
|
15,222
|
|
3 ~ 6 months
|
|
|
6,583
|
|
|
|
8,591
|
|
More than 6 months
|
|
|
23,506
|
|
|
|
11,805
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
45,146
|
|
|
|
47,663
|
|
|
|
|
|
|
|
|
|
|
31
|
(1)
|
Details of short-term investment securities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Beneficiary certificates(*)
|
|
W
|
92,262
|
|
|
|
197,003
|
|
Current portion of long-term investment securities
|
|
|
|
|
|
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
92,262
|
|
|
|
197,161
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The interest distributions arising from beneficiary certificates as of December 31, 2015, were accounted for as accrued income.
|
|
(2)
|
Details of long-term investment securities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
Marketable equity securities
|
|
W
|
579,282
|
|
|
|
490,741
|
|
Unlisted equity securities(*1)
|
|
|
72,461
|
|
|
|
28,696
|
|
Equity investments(*2)
|
|
|
65,659
|
|
|
|
73,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
717,402
|
|
|
|
592,491
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
Public bonds(*3)
|
|
|
|
|
|
|
158
|
|
Investment bonds(*4)
|
|
|
9,103
|
|
|
|
16,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,103
|
|
|
|
16,464
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
726,505
|
|
|
|
608,955
|
|
Less current portion of long-term investment securities
|
|
|
|
|
|
|
(158
|
)
|
|
|
|
|
|
|
|
|
|
Long-term investment securities
|
|
W
|
726,505
|
|
|
|
608,797
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Unlisted equity securities whose fair value cannot be measured reliably are recorded at cost.
|
(*2)
|
Equity investments are recorded at cost.
|
(*3)
|
Details of maturity for the public bonds as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Less than 1 year
|
|
W
|
|
|
|
|
158
|
|
(*4)
|
During the year ended December 31, 2015, the Company exercised the conversion right for the convertible bonds of Health Connect Co., Ltd., which were classified as available-for-sale financial assets. Health Connect
Co., Ltd. has been classified as investments in associates (
W
5,900 million) as the Company obtained significant influence over the investee. As a result of this transaction, investments in associates have increased by
W
5,900 million and the remaining convertible bonds of
W
560 million was fully redeemed. Also, the Company classified the convertible bonds of IRIVER LIMITED, amounting to
W
7,073 million, as financial
assets at fair value through profit or loss and the difference between carrying amount and fair value was accounted for as gain or loss relating to financial assets at fair value through profit or loss.
|
32
8.
|
Investments in Subsidiaries and Associates
|
|
(1)
|
Investments in subsidiaries and associates as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Investments in subsidiaries
|
|
W
|
4,469,997
|
|
|
|
3,614,750
|
|
Investments in associates
|
|
|
4,340,551
|
|
|
|
4,567,019
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,810,548
|
|
|
|
8,181,769
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Details of investments in subsidiaries as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
December 31,
2014
|
|
|
|
Number of
shares
|
|
|
Ownership
(%)
|
|
|
Carrying
amount
|
|
|
Carrying
amount
|
|
SK Telink Co., Ltd.
|
|
|
1,082,272
|
|
|
|
83.5
|
|
|
W
|
144,740
|
|
|
|
144,740
|
|
SK Broadband Co., Ltd.(*1,3,6)
|
|
|
298,460,212
|
|
|
|
100.0
|
|
|
|
1,870,582
|
|
|
|
1,242,247
|
|
SK Communications Co., Ltd.(*2)
|
|
|
28,029,945
|
|
|
|
64.5
|
|
|
|
151,934
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
66,000,000
|
|
|
|
100.0
|
|
|
|
313,934
|
|
|
|
313,934
|
|
Service Ace Co., Ltd.
|
|
|
4,385,400
|
|
|
|
100.0
|
|
|
|
21,927
|
|
|
|
21,927
|
|
Service Top Co., Ltd.
|
|
|
2,856,200
|
|
|
|
100.0
|
|
|
|
14,281
|
|
|
|
14,281
|
|
Network O&S Co., Ltd.
|
|
|
3,000,000
|
|
|
|
100.0
|
|
|
|
15,000
|
|
|
|
15,000
|
|
SK Planet Co., Ltd.(*2,3,4)
|
|
|
71,209,687
|
|
|
|
100.0
|
|
|
|
1,520,206
|
|
|
|
1,538,020
|
|
Neosnetworks Co., Ltd.(*5)
|
|
|
408,435
|
|
|
|
83.9
|
|
|
|
63,967
|
|
|
|
23,968
|
|
IRIVER LIMITED
|
|
|
15,202,039
|
|
|
|
49.0
|
|
|
|
54,503
|
|
|
|
54,503
|
|
SK Telecom China Holdings Co., Ltd.
|
|
|
|
|
|
|
100.0
|
|
|
|
38,652
|
|
|
|
29,116
|
|
SKT Vietnam PTE. Ltd.
|
|
|
180,476,700
|
|
|
|
73.3
|
|
|
|
2,364
|
|
|
|
2,364
|
|
SKT Americas, Inc.
|
|
|
122
|
|
|
|
100.0
|
|
|
|
93,319
|
|
|
|
83,871
|
|
YTK Investment Ltd.
|
|
|
|
|
|
|
100.0
|
|
|
|
18,693
|
|
|
|
27,945
|
|
Atlas Investment
|
|
|
|
|
|
|
100.0
|
|
|
|
78,618
|
|
|
|
77,050
|
|
SK Global Healthcare Business Group Ltd.
|
|
|
|
|
|
|
100.0
|
|
|
|
39,649
|
|
|
|
25,784
|
|
Entrix Co., Ltd.(*4)
|
|
|
4,157,000
|
|
|
|
100.0
|
|
|
|
27,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,469,997
|
|
|
|
3,614,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
On March 20, 2015, the Board of Directors of the Company decided to grant 0.0168936 share of its treasury stock in exchange for 1 share of SK Broadband Co., Ltd., a subsidiary of the Company, to the shareholders of SK
Broadband Co., Ltd. as of June 9, 2015. After the stock exchange, SK Broadband Co., Ltd. became a wholly-owned subsidiary of the Company.
|
(*2)
|
On September 24, 2015, the board of directors of SK Planet Co., Ltd., a subsidiary of the Company, resolved to distribute 26,523,815 shares of SK Communications Co., Ltd., a subsidiary of SK Planet Co., Ltd. to the
Company as dividend in kind and to dispose of 1,506,130 shares of SK Communication Co., Ltd. to the Company. For the year ended December 31, 2015, the Company recognized dividend income amounting to
W
140,834 million based on
carrying amount for 26,523,815 shares of separate financial statements of SK Planet Co., Ltd. and acquired 1,506,130 shares amounting to
W
11,100 million from SK Planet Co., Ltd.
|
33
8.
|
Investments in Subsidiaries and Associates, Continued
|
|
(2)
|
Details of investments in subsidiaries as of December 31, 2015 and 2014 are as follows, Continued:
|
(*3)
|
During the year ended December 31, 2015, hoppin service division of SK Planet Co., Ltd., a subsidiary of the Company, was spun off from SK Planet Co., Ltd. and was merged into SK Broadband, Co., Ltd. Consequently, the
Company exchanged 417,630 shares of SK Planet Co., Ltd. for 2,501,125 shares of SK broadband Co., Ltd.
|
(*4)
|
During the year ended December 31, 2015, Entrix Co., Ltd., providing cloud streaming service, was established by spin off from SK Planet Co, Ltd., a subsidiary of the Company. The Company exchanged 1,300,000 shares of
SK Planet Co., Ltd. for 1,300,000 shares of Entrix Co., Ltd. and additionally acquired 2,857,000 shares by participating in paid in capital increase.
|
(*5)
|
The Company newly acquired 50,377 and 326,748 shares of Neosnetworks Co., Ltd. by participating in the capital increase and capital increase without consideration respectively during the year ended December 31, 2015.
|
(*6)
|
On November 2, 2015, the board of directors of the Company resolved to acquire 30% of the issued and outstanding common shares of CJ Hello Vision Co, Ltd. (CJ Hello Vision) from CJ O Shopping Co., Ltd.
(CJ O Shopping), and the Company entered into a share purchase agreement with CJ O Shopping. On April 4, 2016 (the transaction closing date), the Company will acquire 23,234,060 shares of CJ Hello Vision. As of December 31,
2015, the approval of relevant government agencies for the share purchase has not been completed yet, and the transaction closing date is subject to change depending on the status of the pre-requirements including the approval of government
agencies. According to the share purchase agreement, the Company will grant put option (the exercise date: after 2 years from the date which is 3 years from the transaction closing date) to CJ O Shopping and be granted call option (the exercise
date: after 5 years from the transaction closing date) on CJ O Shoppings remaining shares in CJ Hello Vision. On November 2, 2015, the board of directors of SK Broadband Co., Ltd. (SK Broadband), a subsidiary of the Company, held a
meeting to resolve the merger of SK Broadband into CJ Hello Vision, and SK Broadband entered into a merger agreement with CJ Hello Vision. Under the agreement, SK Broadband will be merged into CJ Hello Vision on April 4, 2016 (the registered date of
the merger). As of December 31, 2015, the approval of relevant government agencies for the merger has not been completed yet, and the transaction closing date is subject to change depending on the status of the pre-requirements including the
approval of government agencies.
|
34
8.
|
Investments in Subsidiaries and Associates, Continued
|
|
(3)
|
Details of investments in associates as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
December 31,
2014
|
|
|
|
Number of
shares
|
|
|
Ownership
percentage
(%)
|
|
|
Carrying
amount
|
|
|
Carrying
amount
|
|
SK China Company Ltd.(*1)
|
|
|
720,000
|
|
|
|
9.6
|
|
|
W
|
47,830
|
|
|
|
47,830
|
|
HappyNarae Co., Ltd.
|
|
|
680,000
|
|
|
|
42.5
|
|
|
|
12,250
|
|
|
|
12,250
|
|
Korea IT Fund(*2)
|
|
|
190
|
|
|
|
63.3
|
|
|
|
220,957
|
|
|
|
220,957
|
|
Wave City Development Co., Ltd.(*1)
|
|
|
393,460
|
|
|
|
19.1
|
|
|
|
1,532
|
|
|
|
1,532
|
|
KEB HanaCard Co., Ltd.(*1,3)
|
|
|
39,902,323
|
|
|
|
15.0
|
|
|
|
253,739
|
|
|
|
430,044
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
1,675,124
|
|
|
|
29.0
|
|
|
|
8,340
|
|
|
|
8,340
|
|
NanoEnTek, Inc.(*4)
|
|
|
6,960,445
|
|
|
|
28.6
|
|
|
|
47,958
|
|
|
|
37,959
|
|
SK Industrial Development China Co., Ltd.
|
|
|
72,952,360
|
|
|
|
21.0
|
|
|
|
83,691
|
|
|
|
83,691
|
|
Packet One Network(*5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,706
|
|
SK Technology Innovation Company
|
|
|
14,700
|
|
|
|
49.0
|
|
|
|
45,864
|
|
|
|
45,864
|
|
SK hynix Inc.
|
|
|
146,100,000
|
|
|
|
20.1
|
|
|
|
3,374,725
|
|
|
|
3,374,725
|
|
SK MENA Investment B.V.
|
|
|
9,772,686
|
|
|
|
32.1
|
|
|
|
14,485
|
|
|
|
14,485
|
|
SK Latin America Investment S.A.
|
|
|
9,448,937
|
|
|
|
32.1
|
|
|
|
14,243
|
|
|
|
14,243
|
|
SKY Property Mgmt. Ltd.
|
|
|
12,639
|
|
|
|
33.0
|
|
|
|
145,656
|
|
|
|
145,656
|
|
SK Wyverns Baseball Club Co., Ltd. and others
|
|
|
|
|
|
|
|
|
|
|
69,281
|
|
|
|
68,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,340,551
|
|
|
|
4,567,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Classified as investments in associates because the Company can exercise significant influence over the associate through participation on the associates board of directors.
|
(*2)
|
Classified as an investment in associate because the Company has less than 50% of the voting rights of the board of directors.
|
(*3)
|
During the year ended December 31, 2015, the Company disposed of 27,725,264 shares of KEB HanaCard Co., Ltd.
|
(*4)
|
During the year ended December 31, 2015, the Company newly acquired 1,090,155 shares of NanoEnTek, Inc. by participating in paid in capital increase allocation of third parties.
|
(*5)
|
Reclassified from investment in associates to available-for-sale financial assets during the year ended December 31, 2015 as the Company no longer has significant influence. The Company recognized the difference between
the carrying amount and the fair value amounting to
W
37,374 million as loss on impairment of investment assets.
|
35
8.
|
Investments in Subsidiaries and Associates, Continued
|
|
(4)
|
The market price of investments in listed subsidiaries as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
IRIVER LIMITED
|
|
|
5,400
|
|
|
|
15,202,039
|
|
|
|
82,091
|
|
|
|
6,370
|
|
|
|
15,202,039
|
|
|
|
96,837
|
|
SK Broadband Co., Ltd. (*)
|
|
|
|
|
|
|
298,460,212
|
|
|
|
|
|
|
|
4,380
|
|
|
|
149,638,354
|
|
|
|
655,416
|
|
SK Communications Co., Ltd.
|
|
W
|
4,390
|
|
|
|
28,029,945
|
|
|
|
123,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Due to the voluntary delisting of SK Broadband Co., Ltd. during the year ended December 31, 2015, the market price is not disclosed as of December 31, 2015.
|
9.
|
Property and Equipment
|
|
(1)
|
Property and equipment as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Carrying amount
|
|
Land
|
|
W
|
494,359
|
|
|
|
|
|
|
|
494,359
|
|
Buildings
|
|
|
1,057,079
|
|
|
|
(499,147
|
)
|
|
|
557,932
|
|
Structures
|
|
|
761,135
|
|
|
|
(418,724
|
)
|
|
|
342,411
|
|
Machinery
|
|
|
21,615,450
|
|
|
|
(16,393,427
|
)
|
|
|
5,222,023
|
|
Other
|
|
|
1,269,423
|
|
|
|
(867,171
|
)
|
|
|
402,252
|
|
Construction in progress
|
|
|
423,303
|
|
|
|
|
|
|
|
423,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
25,620,749
|
|
|
|
(18,178,469
|
)
|
|
|
7,442,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Acquisition cost
|
|
|
Accumulated
depreciation
|
|
|
Carrying amount
|
|
Land
|
|
W
|
448,255
|
|
|
|
|
|
|
|
448,255
|
|
Buildings
|
|
|
1,033,307
|
|
|
|
(464,433
|
)
|
|
|
568,874
|
|
Structures
|
|
|
735,507
|
|
|
|
(384,592
|
)
|
|
|
350,915
|
|
Machinery
|
|
|
20,502,955
|
|
|
|
(15,225,026
|
)
|
|
|
5,277,929
|
|
Other
|
|
|
1,213,336
|
|
|
|
(782,858
|
)
|
|
|
430,478
|
|
Construction in progress
|
|
|
629,455
|
|
|
|
|
|
|
|
629,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
24,562,815
|
|
|
|
(16,856,909
|
)
|
|
|
7,705,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
9.
|
Property and Equipment, Continued
|
|
(2)
|
Changes in property and equipment for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending
balance
|
|
Land
|
|
W
|
448,255
|
|
|
|
5,258
|
|
|
|
(334
|
)
|
|
|
41,180
|
|
|
|
|
|
|
|
494,359
|
|
Buildings
|
|
|
568,874
|
|
|
|
2,332
|
|
|
|
(4,132
|
)
|
|
|
25,878
|
|
|
|
(35,020
|
)
|
|
|
557,932
|
|
Structures
|
|
|
350,915
|
|
|
|
9,776
|
|
|
|
(57
|
)
|
|
|
16,105
|
|
|
|
(34,328
|
)
|
|
|
342,411
|
|
Machinery
|
|
|
5,277,929
|
|
|
|
202,729
|
|
|
|
(15,616
|
)
|
|
|
1,377,106
|
|
|
|
(1,620,125
|
)
|
|
|
5,222,023
|
|
Other
|
|
|
430,478
|
|
|
|
753,606
|
|
|
|
(14,225
|
)
|
|
|
(654,282
|
)
|
|
|
(113,325
|
)
|
|
|
402,252
|
|
Construction in progress
|
|
|
629,455
|
|
|
|
821,781
|
|
|
|
(1,011
|
)
|
|
|
(1,026,922
|
)
|
|
|
|
|
|
|
423,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,705,906
|
|
|
|
1,795,482
|
|
|
|
(35,375
|
)
|
|
|
(220,935
|
)
|
|
|
(1,802,798
|
)
|
|
|
7,442,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2014
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending
balance
|
|
Land
|
|
W
|
416,991
|
|
|
|
7,502
|
|
|
|
(12
|
)
|
|
|
23,774
|
|
|
|
|
|
|
|
448,255
|
|
Buildings
|
|
|
585,375
|
|
|
|
1,722
|
|
|
|
(135
|
)
|
|
|
16,311
|
|
|
|
(34,399
|
)
|
|
|
568,874
|
|
Structures
|
|
|
363,093
|
|
|
|
8,908
|
|
|
|
(39
|
)
|
|
|
11,843
|
|
|
|
(32,890
|
)
|
|
|
350,915
|
|
Machinery
|
|
|
4,945,088
|
|
|
|
208,645
|
|
|
|
(19,955
|
)
|
|
|
1,724,311
|
|
|
|
(1,580,160
|
)
|
|
|
5,277,929
|
|
Other
|
|
|
472,832
|
|
|
|
1,093,655
|
|
|
|
(4,074
|
)
|
|
|
(1,025,891
|
)
|
|
|
(106,044
|
)
|
|
|
430,478
|
|
Construction in progress
|
|
|
676,607
|
|
|
|
776,239
|
|
|
|
(14,922
|
)
|
|
|
(808,469
|
)
|
|
|
|
|
|
|
629,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,459,986
|
|
|
|
2,096,671
|
|
|
|
(39,137
|
)
|
|
|
(58,121
|
)
|
|
|
(1,753,493
|
)
|
|
|
7,705,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
Goodwill as of December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Goodwill related to acquisition of Shinsegi Telecom, Inc.
|
|
W
|
1,306,236
|
|
|
|
1,306,236
|
|
The recoverable amount of the CGU is based on its value in use calculated by applying the annual discount rate
of 4.9% to the estimated future cash flows based on financial budgets for the next five years. An annual growth rate of 0.62% was applied for the cash flows expected to be incurred after five years and is not expected to exceed the Companys
long-term wireless business growth. Management of the Company 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.
|
(1)
|
Intangible assets as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Acquisition
cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment
|
|
|
Carrying
amount
|
|
Frequency use rights
|
|
W
|
3,033,879
|
|
|
|
(1,930,362
|
)
|
|
|
|
|
|
|
1,103,517
|
|
Land use rights
|
|
|
45,111
|
|
|
|
(33,416
|
)
|
|
|
|
|
|
|
11,695
|
|
Industrial rights
|
|
|
43,208
|
|
|
|
(31,380
|
)
|
|
|
|
|
|
|
11,828
|
|
Development costs
|
|
|
99,084
|
|
|
|
(99,084
|
)
|
|
|
|
|
|
|
|
|
Facility usage rights
|
|
|
48,717
|
|
|
|
(32,231
|
)
|
|
|
|
|
|
|
16,486
|
|
Memberships(*1)
|
|
|
82,017
|
|
|
|
|
|
|
|
(20,505
|
)
|
|
|
61,512
|
|
Other(*2)
|
|
|
2,142,050
|
|
|
|
(1,581,019
|
)
|
|
|
|
|
|
|
561,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,494,066
|
|
|
|
(3,707,492
|
)
|
|
|
(20,505
|
)
|
|
|
1,766,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Acquisition
cost
|
|
|
Accumulated
depreciation
|
|
|
Accumulated
impairment
|
|
|
Carrying
amount
|
|
Frequency use rights
|
|
W
|
3,033,879
|
|
|
|
(1,649,835
|
)
|
|
|
|
|
|
|
1,384,044
|
|
Land use rights
|
|
|
43,192
|
|
|
|
(29,176
|
)
|
|
|
|
|
|
|
14,016
|
|
Industrial rights
|
|
|
37,770
|
|
|
|
(27,187
|
)
|
|
|
|
|
|
|
10,583
|
|
Development costs
|
|
|
99,215
|
|
|
|
(99,215
|
)
|
|
|
|
|
|
|
|
|
Facility usage rights
|
|
|
45,636
|
|
|
|
(29,793
|
)
|
|
|
|
|
|
|
15,843
|
|
Memberships(*1)
|
|
|
81,955
|
|
|
|
|
|
|
|
(18,490
|
)
|
|
|
63,465
|
|
Other(*2)
|
|
|
1,840,574
|
|
|
|
(1,400,356
|
)
|
|
|
|
|
|
|
440,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,182,221
|
|
|
|
(3,235,562
|
)
|
|
|
(18,490
|
)
|
|
|
1,928,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
11.
|
Intangible Assets, Continued
|
|
(1)
|
Intangible assets as of December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
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 Company built and donated to a university, and the Company is given rights-to-use for a definite number of
years in turn.
|
|
(2)
|
Details of changes in intangible assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Impairment
loss
|
|
|
Ending
balance
|
|
Frequency use rights
|
|
W
|
1,384,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(280,527
|
)
|
|
|
|
|
|
|
1,103,517
|
|
Land use rights
|
|
|
14,016
|
|
|
|
2,484
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
(4,802
|
)
|
|
|
|
|
|
|
11,695
|
|
Industrial rights
|
|
|
10,583
|
|
|
|
5,441
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
(4,194
|
)
|
|
|
|
|
|
|
11,828
|
|
Facility usage rights
|
|
|
15,843
|
|
|
|
2,071
|
|
|
|
(23
|
)
|
|
|
1,179
|
|
|
|
(2,584
|
)
|
|
|
|
|
|
|
16,486
|
|
Memberships(*)
|
|
|
63,465
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,015
|
)
|
|
|
61,512
|
|
Other
|
|
|
440,218
|
|
|
|
67,772
|
|
|
|
(129
|
)
|
|
|
238,171
|
|
|
|
(185,001
|
)
|
|
|
|
|
|
|
561,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,928,169
|
|
|
|
77,830
|
|
|
|
(157
|
)
|
|
|
239,350
|
|
|
|
(477,108
|
)
|
|
|
(2,015
|
)
|
|
|
1,766,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Company recognized the difference between recoverable amount and the carrying amount of memberships, amounting to
W
2,015 million as impairment loss for the year ended December 31,
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Impairment
loss
|
|
|
Ending
balance
|
|
Frequency use rights
|
|
W
|
1,664,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(280,527
|
)
|
|
|
|
|
|
|
1,384,044
|
|
Land use rights
|
|
|
9,752
|
|
|
|
8,737
|
|
|
|
|
|
|
|
|
|
|
|
(4,473
|
)
|
|
|
|
|
|
|
14,016
|
|
Industrial rights
|
|
|
9,113
|
|
|
|
4,959
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
(3,487
|
)
|
|
|
|
|
|
|
10,583
|
|
Facility usage rights
|
|
|
16,155
|
|
|
|
1,890
|
|
|
|
(30
|
)
|
|
|
382
|
|
|
|
(2,554
|
)
|
|
|
|
|
|
|
15,843
|
|
Memberships(*)
|
|
|
82,815
|
|
|
|
|
|
|
|
(860
|
)
|
|
|
|
|
|
|
|
|
|
|
(18,490
|
)
|
|
|
63,465
|
|
Other
|
|
|
456,761
|
|
|
|
75,474
|
|
|
|
(592
|
)
|
|
|
72,760
|
|
|
|
(164,185
|
)
|
|
|
|
|
|
|
440,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,239,167
|
|
|
|
91,060
|
|
|
|
(1,484
|
)
|
|
|
73,142
|
|
|
|
(455,226
|
)
|
|
|
(18,490
|
)
|
|
|
1,928,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Company recognized the difference between recoverable amount and the carrying amount of memberships, amounting to
W
18,490 million as impairment loss for the year ended December 31,
2014.
|
39
11.
|
Intangible Assets, Continued
|
|
(3)
|
Research and development expenditure recognized as expense for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Research and development costs expensed as incurred
|
|
W
|
247,461
|
|
|
|
240,562
|
|
|
(4)
|
The carrying amount and residual useful lives of frequency usage rights as of December 31, 2015 are as follows, all of which are depreciated on a straight-line basis:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
Amount
|
|
|
Description
|
|
Commencement of
depreciation
|
|
Completion of
depreciation
|
W-CDMA license
|
|
W
|
102,839
|
|
|
Frequency use rights relating to W-CDMA service
|
|
Dec. 2003
|
|
Dec. 2016
|
W-CDMA license
|
|
|
16,311
|
|
|
Frequency use rights relating to W-CDMA service
|
|
Oct. 2010
|
|
Dec. 2016
|
800MHz license
|
|
|
222,992
|
|
|
Frequency use rights relating to CDMA and LTE service
|
|
Jul. 2011
|
|
Jun. 2021
|
1.8GHz license
|
|
|
753,720
|
|
|
Frequency use rights relating to LTE service
|
|
Sep. 2013
|
|
Dec. 2021
|
WiBro license
|
|
|
7,655
|
|
|
WiBro service
|
|
Mar. 2012
|
|
Mar. 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,103,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40
12.
|
Borrowings and Debentures
|
|
(1)
|
Short-term borrowings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of U.S. dollars)
|
|
Lender
|
|
Annual interest
rate (%)
|
|
Maturity
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Korea Development Bank
|
|
2.48
|
|
Apr. 30, 2015
|
|
W
|
|
|
|
|
100,000
|
|
Kookmin Bank
|
|
2.47
|
|
Jan. 21, 2016
|
|
|
40,000
|
|
|
|
|
|
CP
|
|
2.37
|
|
Jan. 15, 2015
|
|
|
|
|
|
|
100,000
|
|
|
|
1.84
|
|
Jan. 14, 2016
|
|
|
190,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
230,000
|
|
|
|
200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Long-term borrowings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of U.S. dollars)
|
|
Lender
|
|
Annual interest
rate (%)
|
|
Maturity
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Export Kreditnamnden(*1)
|
|
1.70
|
|
Apr. 29, 2022
|
|
W
|
87,685
|
|
|
|
94,903
|
|
|
|
|
|
|
|
(USD
|
74,817
|
)
|
|
(USD
|
86,338
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,685
|
|
|
|
94,903
|
|
Less present value discount on long-term borrowings
|
|
|
|
|
|
|
(2,124
|
)
|
|
|
(2,623
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85,561
|
|
|
|
92,280
|
|
Less current portion of long-term borrowings
|
|
|
|
|
|
|
(13,007
|
)
|
|
|
(12,133
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
72,554
|
|
|
|
80,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
For the years ended December 31, 2014 and 2013, the Company obtained long-term borrowings from Export Kreditnamnden, an export credit agency. The long-term borrowings are redeemed by installment on an annual basis from
2014 to 2022.
|
(*2)
|
Convenient translation was provided for the borrowings repayable in other currencies
|
41
12.
|
Borrowings and Debentures, Continued
|
|
(3)
|
Debentures as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars, and thousands of other currencies)
|
|
|
|
Purpose
|
|
Maturity
|
|
Annual
interest rate
(%)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2016
|
|
5.00
|
|
W
|
200,000
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
Other fund
|
|
2015
|
|
5.00
|
|
|
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
|
|
2018
|
|
5.00
|
|
|
200,000
|
|
|
|
200,000
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.54
|
|
|
40,000
|
|
|
|
40,000
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.92
|
|
|
230,000
|
|
|
|
230,000
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2016
|
|
3.95
|
|
|
110,000
|
|
|
|
110,000
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
4.22
|
|
|
190,000
|
|
|
|
190,000
|
|
Unsecured private bonds
|
|
Operating and
refinancing fund
|
|
2019
|
|
3.24
|
|
|
170,000
|
|
|
|
170,000
|
|
Unsecured private bonds
|
|
|
|
2022
|
|
3.30
|
|
|
140,000
|
|
|
|
140,000
|
|
Unsecured private bonds
|
|
|
|
2032
|
|
3.45
|
|
|
90,000
|
|
|
|
90,000
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2023
|
|
3.03
|
|
|
230,000
|
|
|
|
230,000
|
|
Unsecured private bonds
|
|
|
|
2033
|
|
3.22
|
|
|
130,000
|
|
|
|
130,000
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
3.30
|
|
|
50,000
|
|
|
|
50,000
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
3.64
|
|
|
150,000
|
|
|
|
150,000
|
|
Unsecured private bonds(*2, 3)
|
|
|
|
2029
|
|
4.73
|
|
|
|
|
|
|
55,188
|
|
Unsecured private bonds(*2)
|
|
|
|
2029
|
|
4.72
|
|
|
54,695
|
|
|
|
55,177
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2019
|
|
2.53
|
|
|
160,000
|
|
|
|
160,000
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
2.66
|
|
|
150,000
|
|
|
|
150,000
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
2.82
|
|
|
190,000
|
|
|
|
190,000
|
|
Unsecured private bonds
|
|
Operating and
refinancing fund
|
|
2022
|
|
2.40
|
|
|
100,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.49
|
|
|
150,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.61
|
|
|
50,000
|
|
|
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2018
|
|
1.89
|
|
|
90,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.66
|
|
|
70,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.82
|
|
|
90,000
|
|
|
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2030
|
|
3.40
|
|
|
50,485
|
|
|
|
|
|
Unsecured private bonds
|
|
Operating and
refinancing fund
|
|
2018
|
|
2.07
|
|
|
80,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.55
|
|
|
100,000
|
|
|
|
|
|
Unsecured private bonds
|
|
|
|
2035
|
|
2.75
|
|
|
70,000
|
|
|
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2030
|
|
3.10
|
|
|
50,524
|
|
|
|
|
|
Foreign global bonds
|
|
Operating fund
|
|
2027
|
|
6.63
|
|
|
468,800
|
|
|
|
439,680
|
|
|
|
|
|
|
|
|
|
(USD
|
400,000
|
)
|
|
(USD
|
400,000
|
)
|
Swiss unsecured private Bonds
|
|
|
|
2017
|
|
1.75
|
|
|
355,617
|
|
|
|
333,429
|
|
|
|
|
|
|
|
|
|
(CHF
|
300,000
|
)
|
|
(CHF
|
300,000
|
)
|
Foreign global bonds
|
|
|
|
2018
|
|
2.13
|
|
|
820,400
|
|
|
|
769,440
|
|
|
|
|
|
|
|
|
|
(USD
|
700,000
|
)
|
|
(USD
|
700,000
|
)
|
Australian unsecured private Bonds
|
|
|
|
2017
|
|
4.75
|
|
|
255,930
|
|
|
|
269,727
|
|
|
|
|
|
|
|
|
|
(AUD
|
300,000
|
)
|
|
(AUD
|
300,000
|
)
|
Floating rate notes (*1)
|
|
|
|
2020
|
|
3M Libor +
0.88
|
|
|
351,600
|
|
|
|
329,760
|
|
|
|
|
|
|
|
|
|
(USD
|
300,000
|
)
|
|
(USD
|
300,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,638,051
|
|
|
|
4,882,401
|
|
Less discounts on bonds
|
|
|
|
|
|
|
|
|
(24,926
|
)
|
|
|
(27,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,613,125
|
|
|
|
4,854,867
|
|
Less current portion of bonds
|
|
|
|
|
|
|
|
|
(579,630
|
)
|
|
|
(199,730
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,033,495
|
|
|
|
4,655,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
12.
|
Borrowings and Debentures, Continued
|
|
(3)
|
Debentures as of December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
As of December 31, 2015, 3M Libor rate is 0.61%.
|
(*2)
|
The Company settled the difference of the measurement bases 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 difference between the carrying amount of the designated financial liabilities at fair value through
profit or loss and the amount required to pay at maturity is
W
5,704 million as of December 31, 2015.
(*3)
|
As of December 31, 2014, the principal amount and the fair value of the structured bonds were
W
50,000 million and
W
55,188 million, respectively. The
entire bonds were early redeemed during the year ended December 31, 2015.
|
(*4)
|
Convenient translation was provided for the bonds repayable in other currencies.
|
13.
|
Long-term Payables - Other
|
|
(1)
|
As of December 31, 2015 and 2014, long-term payables - other consist of payables related to the acquisition of W-CDMA licenses for 800MHZ, 2.3GHz and 1.8GHz frequencies as follows (Refer to Note 11):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Period of
repayment
|
|
Coupon rate
|
|
Annual effective
interest rate(*)
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
800MHz
|
|
2013~2015
|
|
3.51%
|
|
5.69%
|
|
W
|
|
|
|
|
69,416
|
|
2.3GHz
|
|
2014~2016
|
|
3.00%
|
|
5.80%
|
|
|
2,882
|
|
|
|
5,766
|
|
1.8GHz
|
|
2012~2021
|
|
2.43~3.00%
|
|
4.84~5.25%
|
|
|
707,006
|
|
|
|
824,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
709,888
|
|
|
|
900,023
|
|
Present value discount on long-term payables other
|
|
|
|
|
|
|
|
|
(38,739
|
)
|
|
|
(53,633
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
671,149
|
|
|
|
846,390
|
|
Less current portion of long-term payables other
|
|
|
|
|
|
|
|
|
(120,718
|
)
|
|
|
(190,134
|
)
|
Current portion of present value discount on long-term payables other
|
|
|
|
|
|
|
|
|
533
|
|
|
|
745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount at December 31
|
|
|
|
|
|
|
|
W
|
550,964
|
|
|
|
657,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Company estimated the discount rate based on its credit ratings and corporate bond yield rate as there is no market interest rate available for long-term payables-other.
|
|
(2)
|
The repayment schedule of long-term payables other related to acquisition of W-CDMA licenses as of December 31, 2015 is as follows:
|
|
|
|
|
|
(In millions of won)
|
|
Amount
|
|
Less than 1 year
|
|
W
|
120,718
|
|
1~3 years
|
|
|
235,669
|
|
3~5 years
|
|
|
235,669
|
|
More than 5 years
|
|
|
117,832
|
|
|
|
|
|
|
|
|
W
|
709,888
|
|
|
|
|
|
|
43
Change in provisions for the years ended December 31, 2015 and 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the year ended December 31, 2015
|
|
|
As of December 31, 2015
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-current
|
|
Provision for handset subsidy(*1)
|
|
W
|
26,799
|
|
|
|
1,641
|
|
|
|
(5,004
|
)
|
|
|
(17,766
|
)
|
|
|
5,670
|
|
|
|
2,232
|
|
|
|
3,438
|
|
Provision for restoration
|
|
|
51,333
|
|
|
|
5,220
|
|
|
|
(962
|
)
|
|
|
(5,132
|
)
|
|
|
50,459
|
|
|
|
33,842
|
|
|
|
16,617
|
|
Emission allowance (*2)
|
|
|
|
|
|
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
1,477
|
|
|
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
78,132
|
|
|
|
8,338
|
|
|
|
(5,966
|
)
|
|
|
(22,898
|
)
|
|
|
57,606
|
|
|
|
37,551
|
|
|
|
20,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the year ended December 31, 2014
|
|
|
As of December 31, 2014
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Ending balance
|
|
|
Current
|
|
|
Non-current
|
|
Provision for handset subsidy(*1)
|
|
W
|
53,923
|
|
|
|
41,802
|
|
|
|
(68,926
|
)
|
|
|
26,799
|
|
|
|
14,844
|
|
|
|
11,955
|
|
Provision for restoration
|
|
|
32,173
|
|
|
|
19,699
|
|
|
|
(539
|
)
|
|
|
51,333
|
|
|
|
35,612
|
|
|
|
15,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
86,096
|
|
|
|
61,501
|
|
|
|
(69,465
|
)
|
|
|
78,132
|
|
|
|
50,456
|
|
|
|
27,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
The Company has provided handset subsidy to subscribers who purchase handsets on an installment basis and recognized provision for subsidy amounts which the Company is expected to pay in future periods.
|
(*2)
|
The Company recognizes estimated future payment for the number of emission certificates required to settle the Companys 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.
|
44
15.
|
Defined Benefit Liabilities
|
|
(1)
|
Details of defined benefit liabilities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Present value of defined benefit obligations
|
|
W
|
212,139
|
|
|
|
195,130
|
|
Fair value of plan assets
|
|
|
(208,133
|
)
|
|
|
(179,575
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,006
|
|
|
|
15,555
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Principal actuarial assumptions as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Discount rate for defined benefit obligations
|
|
|
2.57
|
%
|
|
|
2.91
|
%
|
Expected rate of salary increase
|
|
|
3.58
|
%
|
|
|
3.80
|
%
|
Discount rate for defined benefit obligation is determined based on the Companys credit ratings and yield
rate of corporate bonds with similar maturities for estimated payment term of defined benefit obligation. Expected rate of salary increase is determined based on the Companys historical promotion index, inflation rate and salary increase ratio
in accordance with salary agreement.
|
(3)
|
Changes in defined benefit obligations for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the year ended December 31
|
|
|
|
2015
|
|
|
2014
|
|
Beginning balance
|
|
W
|
195,130
|
|
|
|
154,460
|
|
Current service cost
|
|
|
34,933
|
|
|
|
33,457
|
|
Interest cost
|
|
|
5,391
|
|
|
|
6,415
|
|
Remeasurement
|
|
|
|
|
|
|
|
|
- Demographic assumption
|
|
|
2,118
|
|
|
|
|
|
- Financial assumption
|
|
|
2,843
|
|
|
|
8,231
|
|
- Adjustment based on experience
|
|
|
(1,643
|
)
|
|
|
11,500
|
|
Benefit paid
|
|
|
(29,795
|
)
|
|
|
(21,887
|
)
|
Others(*)
|
|
|
3,162
|
|
|
|
2,954
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
212,139
|
|
|
|
195,130
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Others for the years ended December 31, 2015 and 2014 include transfer to construction in progress and liabilities succeeded in relation to transfer of executives from affiliates.
|
45
15.
|
Defined Benefit Liabilities, Continued
|
|
(4)
|
Changes in plan assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Beginning balance
|
|
W
|
179,575
|
|
|
|
131,574
|
|
Interest income
|
|
|
4,944
|
|
|
|
5,302
|
|
Actuarial gain
|
|
|
3,826
|
|
|
|
1,514
|
|
Contributions to the plan
|
|
|
47,000
|
|
|
|
48,500
|
|
Benefit paid
|
|
|
(27,212
|
)
|
|
|
(7,315
|
)
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
208,133
|
|
|
|
179,575
|
|
|
|
|
|
|
|
|
|
|
The Company expects to make a contribution of
W
43,000 million to the defined
benefit plans during the next financial year.
|
(5)
|
Expenses recognized in profit and loss (included in labor cost in the accompanying statements of income) and capitalized into construction-in-progress for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Current service cost
|
|
W
|
34,933
|
|
|
|
33,457
|
|
Net Interest cost
|
|
|
447
|
|
|
|
1,113
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
35,380
|
|
|
|
34,570
|
|
|
|
|
|
|
|
|
|
|
The above costs are recognized in labor cost, research and development, or capitalized into
construction-in-progress.
|
(6)
|
Details of plan assets as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Equity instruments
|
|
W
|
402
|
|
|
|
951
|
|
Debt instruments
|
|
|
71,892
|
|
|
|
52,614
|
|
Short-term financial instruments, etc.
|
|
|
135,839
|
|
|
|
126,010
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
208,133
|
|
|
|
179,575
|
|
|
|
|
|
|
|
|
|
|
Actual return on plan assets for the years ended December 31, 2015 and 2014 amounted to
W
8,770
million and
W
6,816 million, respectively.
46
15.
|
Defined Benefit Liabilities, Continued
|
|
(7)
|
As of December 31, 2015, effects on defined benefit obligations if each of significant actuarial assumptions changes within expectable and reasonable range are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Decrease
|
|
Discount rate (if changed by 0.5%)
|
|
W
|
(7,827
|
)
|
|
|
8,346
|
|
Expected salary increase rate (if changed by 0.5%)
|
|
|
8,412
|
|
|
|
(7,959
|
)
|
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.
Weighted average durations of defined benefit obligations as of
December 31, 2015 and 2014 are 9.21 years and 8.42 years, respectively.
16.
|
Derivative Instruments
|
|
(1)
|
Currency swap contracts under cash flow hedge accounting as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of foreign currencies)
|
Borrowing
date
|
|
Hedged item
|
|
Hedged risk
|
|
Contract
type
|
|
Financial institution
|
|
Duration of
contract
|
Jul. 20, 2007
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Morgan Stanley and five other banks
|
|
Jul. 20, 2007 ~ Jul. 20, 2027
|
Jun. 12, 2012
|
|
Fixed-to-fixed cross currency swap (Swiss Franc denominated bonds face value of CHF 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Citibank and four other banks
|
|
Jun. 12, 2012 ~ Jun. 12, 2017
|
Nov. 1,
2012
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 700,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Barclays and eight other banks
|
|
Nov. 1, 2012~ May 1, 2018
|
Jan. 17,
2013
|
|
Fixed-to-fixed cross currency swap (Australia dollar denominated bonds face value of AUD 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
BNP Paribas and three other banks
|
|
Jan. 17, 2013 ~ Nov. 17, 2017
|
Mar. 7,
2013
|
|
Floating-to-fixed cross currency interest rate swap (U.S. dollar denominated bonds face value of USD 300,000)
|
|
Foreign currency risk and the interest rate risk
|
|
Currency interest rate swap
|
|
DBS bank
|
|
Mar. 7, 2013 ~ Mar. 7, 2020
|
Dec. 16, 2013
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 74,817)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Deutsche bank
|
|
Dec. 16, 2013 ~ Apr. 29, 2022
|
47
16.
|
Derivative Instruments, Continued
|
|
(2)
|
As of December 31, 2015, fair values of the above derivatives recorded in assets or liabilities and details of derivative instruments are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of foreign currencies)
|
|
|
|
Fair value
|
|
|
|
Cash flow hedge
|
|
|
Held for
trading
purpose
|
|
|
Total
|
|
Hedged item
|
|
Accumulated
gain (loss) on
valuation of
derivatives
|
|
|
Tax
effect
|
|
|
Accumulated
loss (gain) on
foreign
currency
translation
|
|
|
Others
(*)
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structured bond (face value of KRW 150,000)
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,277
|
|
|
|
6,277
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 400,000)
|
|
|
(46,616
|
)
|
|
|
(14,883
|
)
|
|
|
11,180
|
|
|
|
129,806
|
|
|
|
|
|
|
|
79,487
|
|
Fixed-to-fixed cross currency swap (U.S. dollar denominated bonds face value of USD 700,000)
|
|
|
(18,705
|
)
|
|
|
(5,971
|
)
|
|
|
56,738
|
|
|
|
|
|
|
|
|
|
|
|
32,062
|
|
Floating-to-fixed cross currency interest rate swap(U.S. dollar denominated bonds face value of USD 300,000)
|
|
|
(5,748
|
)
|
|
|
(1,835
|
)
|
|
|
26,439
|
|
|
|
|
|
|
|
|
|
|
|
18,856
|
|
Fixed-to-fixed long-term borrowings (U.S. dollar denominated bonds face value of USD 74,817)
|
|
|
(4,072
|
)
|
|
|
(1,300
|
)
|
|
|
8,613
|
|
|
|
|
|
|
|
|
|
|
|
3,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
139,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed cross currency swap (Swiss Franc denominated bonds face value of CHF 300,000)
|
|
W
|
(3,678
|
)
|
|
|
(1,174
|
)
|
|
|
(7,851
|
)
|
|
|
|
|
|
|
|
|
|
|
(12,703
|
)
|
Fixed-to-fixed cross currency swap (Australia dollar denominated bonds face value of AUD 300,000)
|
|
|
2,013
|
|
|
|
642
|
|
|
|
(79,248
|
)
|
|
|
|
|
|
|
|
|
|
|
(76,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(89,296
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Cash flow hedge accounting has been applied to the relevant contract from May 12, 2010. Others represent gain on valuation of currency swap incurred prior to the application of hedge accounting and was recognized
through profit or loss prior to the year ended December 31, 2013.
|
48
17.
|
Share Capital and Capital Surplus and Other Capital Adjustments
|
The Companys
outstanding share capital consists entirely of common stock with a par value of
W
500. The number of authorized, issued and outstanding common shares and capital surplus and other capital adjustments as of December 31, 2015 and 2014
are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Authorized shares
|
|
|
220,000,000
|
|
|
|
220,000,000
|
|
Issued shares(*)
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
Share capital
|
|
|
|
|
|
|
|
|
Common stock
|
|
W
|
44,639
|
|
|
|
44,639
|
|
Capital surplus and other capital adjustments:
|
|
|
|
|
|
|
|
|
Paid-in surplus
|
|
|
2,915,887
|
|
|
|
2,915,887
|
|
Treasury stock (Note 18)
|
|
|
(2,260,626
|
)
|
|
|
(2,139,683
|
)
|
Loss on disposal of treasury stock
|
|
|
|
|
|
|
(18,087
|
)
|
Hybrid bond (Note 19)
|
|
|
398,518
|
|
|
|
398,518
|
|
Others
|
|
|
(684,333
|
)
|
|
|
(722,741
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
369,446
|
|
|
|
433,894
|
|
|
|
|
|
|
|
|
|
|
(*)
|
During the years ended December 31, 2003, 2006 and 2009, the Company retired 7,002,235 shares, 1,083,000 shares and 448,000 shares, respectively, of treasury stock which reduced its retained earnings before
appropriation in accordance with the Korean Commercial Law. As a result, the Companys outstanding shares have decreased without change in the share capital.
|
There were no changes in share capital for the years ended December 31, 2015 and 2014.
Changes in number of shares outstanding for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
2015
|
|
|
2014
|
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
Beginning issued shares
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
Disposal of treasury stock
|
|
|
|
|
|
|
(1,692,824
|
)
|
|
|
1,692,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of treasury stock
|
|
|
|
|
|
|
2,020,000
|
|
|
|
(2,020,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending issued shares
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
The Company acquired treasury stock to provide stock dividends, merge
with Shinsegi Telecom, Inc. and SK IMT Co, Ltd., increase shareholder value and to stabilize its stock prices when needed.
Treasury stock
as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Number of shares
|
|
|
10,136,551
|
|
|
|
9,809,375
|
|
Amount
|
|
W
|
2,260,626
|
|
|
|
2,139,683
|
|
On June 9, 2015, the Company granted 1,692,824 shares of its treasury stock (acquisition cost:
W
369,249 million) in order to acquire shares of SK Broadband Co., Ltd. In addition, from September 30, 2015 to December 11, 2015, the Company newly acquired 2,020,000 shares of its treasury stock amounting to
W
490,192 million in order to stabilize stock price.
Hybrid bonds classified as equity as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Type
|
|
Issuance date
|
|
Maturity
|
|
Annual
interest rate
(%)
|
|
|
Amount
|
|
Private hybrid bonds
|
|
Blank coupon unguaranteed
subordinated bonds
|
|
June 7, 2013
|
|
June 7, 2073(*1)
|
|
|
4.21
|
(*2)
|
|
W
|
400,000
|
|
Issuance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
398,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hybrid bonds issued by the 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 shareholders in the event of a liquidation or reorganization of the Company.
(*1)
|
The Company has a right to extend the maturity under the same issuance terms without any notice or announcement. The Company also has the right to defer interest payment at its sole discretion.
|
(*2)
|
Annual interest rate is adjusted after five years from the issuance date.
|
50
|
(1)
|
Retained earnings as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Appropriated:
|
|
|
|
|
|
|
|
|
Legal reserve
|
|
W
|
22,320
|
|
|
|
22,320
|
|
Reserve for research & manpower development
|
|
|
87,301
|
|
|
|
151,534
|
|
Reserve for business expansion
|
|
|
9,671,138
|
|
|
|
9,476,138
|
|
Reserve for technology development
|
|
|
2,616,300
|
|
|
|
2,416,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,397,059
|
|
|
|
12,066,292
|
|
Unappropriated
|
|
|
1,021,544
|
|
|
|
930,498
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,418,603
|
|
|
|
12,996,790
|
|
|
|
|
|
|
|
|
|
|
The Korean Commercial Code requires the 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.
|
(3)
|
Reserve for research & manpower development
|
The reserve for research and manpower
development was appropriated in order to recognize certain tax deductible benefits through the early recognition of future expenditures for tax purposes. These reserves will be reversed from appropriated and retained earnings in accordance with the
relevant tax laws. Such reversal will be included in taxable income in the year of reversal.
51
21.
|
Statements of Appropriation of Retained Earnings
|
Details of appropriations of retained
earnings for the years ended December 31, 2015 and 2014 are as follows:
Date of appropriation for 2015: March 18, 2016
Date of appropriation for 2014: March 20, 2015
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Unappropriated retained earnings:
|
|
|
|
|
|
|
|
|
Unappropriated retained earnings
|
|
W
|
3,866
|
|
|
|
3,542
|
|
Remeasurement of defined benefit liabilities
|
|
|
386
|
|
|
|
(13,808
|
)
|
Interim dividends -
W
1,000 per share, 200% on par value
|
|
|
(72,629
|
)
|
|
|
(70,937
|
)
|
Interest on hybrid bond
|
|
|
(16,840
|
)
|
|
|
(16,840
|
)
|
Profit for the year
|
|
|
1,106,761
|
|
|
|
1,028,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,021,544
|
|
|
|
930,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from voluntary reserves:
|
|
|
|
|
|
|
|
|
Reserve for research and manpower development
|
|
|
27,300
|
|
|
|
64,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriation of retained earnings:
|
|
|
|
|
|
|
|
|
Reserve for business expansion
|
|
|
200,000
|
|
|
|
195,000
|
|
Reserve for technology development
|
|
|
210,000
|
|
|
|
200,000
|
|
Cash dividends 2015:
W
9,000 per share, 1,800% on par value 2014:
W
8,400 per share, 1,680% on par value
|
|
|
635,482
|
|
|
|
595,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,045,482
|
|
|
|
990,865
|
|
|
|
|
|
|
|
|
|
|
Unappropriated retained earnings to be carried over to subsequent year
|
|
W
|
3,362
|
|
|
|
3,866
|
|
|
|
|
|
|
|
|
|
|
52
|
(1)
|
Details of reserves, net of taxes, as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Unrealized fair value of available-for-sale financial assets
|
|
W
|
23,578
|
|
|
|
145,106
|
|
Unrealized fair value of derivatives
|
|
|
(76,806
|
)
|
|
|
(78,208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(53,228
|
)
|
|
|
66,898
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Changes in reserves for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Unrealized
fair value of
available-for-sale
financial
assets
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Total
|
|
Balance at January 1, 2015
|
|
W
|
145,106
|
|
|
|
(78,208
|
)
|
|
|
66,898
|
|
Changes
|
|
|
(160,327
|
)
|
|
|
1,850
|
|
|
|
(158,477
|
)
|
Tax effect
|
|
|
38,799
|
|
|
|
(448
|
)
|
|
|
38,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
23,578
|
|
|
|
(76,806
|
)
|
|
|
(53,228
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Unrealized
fair value of
available-for-sale
financial
assets
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Total
|
|
Balance at January 1, 2014
|
|
W
|
211,209
|
|
|
|
(40,033
|
)
|
|
|
171,176
|
|
Changes
|
|
|
(87,207
|
)
|
|
|
(50,363
|
)
|
|
|
(137,570
|
)
|
Tax effect
|
|
|
21,104
|
|
|
|
12,188
|
|
|
|
33,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
145,106
|
|
|
|
(78,208
|
)
|
|
|
66,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
|
(3)
|
Details of change in unrealized fair value of available-for-sale financial assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2015
|
|
W
|
191,433
|
|
|
|
(46,327
|
)
|
|
|
145,106
|
|
Amount recognized as other comprehensive income (loss) during the year
|
|
|
(159,759
|
)
|
|
|
38,662
|
|
|
|
(121,097
|
)
|
Amount reclassified through profit or loss
|
|
|
(568
|
)
|
|
|
137
|
|
|
|
(431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
31,106
|
|
|
|
(7,528
|
)
|
|
|
23,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2014
|
|
W
|
278,640
|
|
|
|
(67,431
|
)
|
|
|
211,209
|
|
Amount recognized as other comprehensive income (loss) during the year
|
|
|
(77,367
|
)
|
|
|
18,723
|
|
|
|
(58,644
|
)
|
Amount reclassified through profit or loss
|
|
|
(9,840
|
)
|
|
|
2,381
|
|
|
|
(7,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
191,433
|
|
|
|
(46,327
|
)
|
|
|
145,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Details of change in unrealized fair value of derivatives for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2015
|
|
W
|
(103,177
|
)
|
|
|
24,969
|
|
|
|
(78,208
|
)
|
Amount recognized as other comprehensive income (loss) during the year
|
|
|
2,357
|
|
|
|
(570
|
)
|
|
|
1,787
|
|
Amount reclassified through profit or loss
|
|
|
(507
|
)
|
|
|
122
|
|
|
|
(385
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
W
|
(101,327
|
)
|
|
|
24,521
|
|
|
|
(76,806
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Before taxes
|
|
|
Income tax effect
|
|
|
After taxes
|
|
Balance at January 1, 2014
|
|
W
|
(52,814
|
)
|
|
|
12,781
|
|
|
|
(40,033
|
)
|
Amount recognized as other comprehensive income (loss) during the year
|
|
|
(42,608
|
)
|
|
|
10,311
|
|
|
|
(32,297
|
)
|
Amount reclassified through profit or loss
|
|
|
(7,755
|
)
|
|
|
1,877
|
|
|
|
(5,878
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014
|
|
W
|
(103,177
|
)
|
|
|
24,969
|
|
|
|
(78,208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
23.
|
Other Operating Expenses
|
Details of other operating expenses for the years ended
December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
|
|
|
Other Operating Expenses:
|
|
|
|
|
|
|
|
|
Communication expenses
|
|
W
|
33,977
|
|
|
|
42,055
|
|
Utilities
|
|
|
204,394
|
|
|
|
182,790
|
|
Taxes and dues
|
|
|
21,985
|
|
|
|
21,500
|
|
Repair
|
|
|
208,418
|
|
|
|
202,824
|
|
Research and development
|
|
|
247,461
|
|
|
|
240,562
|
|
Training
|
|
|
26,579
|
|
|
|
31,768
|
|
Bad debt for accounts receivables trade
|
|
|
37,715
|
|
|
|
27,313
|
|
Other
|
|
|
44,495
|
|
|
|
60,989
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
825,024
|
|
|
|
809,801
|
|
|
|
|
|
|
|
|
|
|
24.
|
Other Non-operating Income and Expenses
|
Details of other non-operating income and
expenses for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
|
|
|
Other Non-operating Income:
|
|
|
|
|
|
|
|
|
Gain on disposal of property and equipment and intangible assets
|
|
W
|
3,827
|
|
|
|
3,676
|
|
Others(*1)
|
|
|
11,450
|
|
|
|
33,746
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,277
|
|
|
|
37,422
|
|
|
|
|
|
|
|
|
|
|
Other Non-operating Expenses:
|
|
|
|
|
|
|
|
|
Loss on disposal of property and equipment and intangible assets
|
|
W
|
15,644
|
|
|
|
17,493
|
|
Impairment loss on property and equipment, and intangible assets
|
|
|
2,015
|
|
|
|
18,490
|
|
Donations
|
|
|
62,908
|
|
|
|
67,130
|
|
Bad debt for accounts receivable other
|
|
|
15,328
|
|
|
|
15,873
|
|
Others(*2)
|
|
|
37,098
|
|
|
|
65,191
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
132,993
|
|
|
|
184,177
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Others for the year ended December 31, 2015 primarily consists of penalty received from customers who do not comply with contract.
|
(*2)
|
Others for the year ended December 31, 2015 primarily consists of penalties.
|
55
25.
|
Finance Income and Costs
|
|
(1)
|
Details of finance income and costs for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
2014
|
|
|
|
|
Finance Income:
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
20,560
|
|
|
|
25,015
|
|
Dividends
|
|
|
200,296
|
|
|
|
13,048
|
|
Gain on foreign currency transactions
|
|
|
12,595
|
|
|
|
13,505
|
|
Gain on foreign currency translations
|
|
|
770
|
|
|
|
1,373
|
|
Gain relating to financial assets at fair value through profit or loss
|
|
|
|
|
|
|
2,817
|
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
5,188
|
|
|
|
|
|
Gain on disposal of long-term investment securities
|
|
|
5,058
|
|
|
|
9,807
|
|
Gain on valuation of derivatives
|
|
|
1,927
|
|
|
|
8,713
|
|
Gain on settlement of derivatives
|
|
|
|
|
|
|
7,998
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
246,394
|
|
|
|
82,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Finance Costs:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
241,608
|
|
|
|
265,195
|
|
Loss on foreign currency transactions
|
|
|
11,177
|
|
|
|
15,526
|
|
Loss on foreign currency translations
|
|
|
318
|
|
|
|
167
|
|
Loss on disposal of long-term investment securities
|
|
|
842
|
|
|
|
57
|
|
Loss on settlement of derivatives
|
|
|
4,845
|
|
|
|
672
|
|
Loss relating to financial assets at fair value through profit or loss
|
|
|
744
|
|
|
|
1,352
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
526
|
|
|
|
10,369
|
|
Other financial costs
|
|
|
54,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
314,191
|
|
|
|
293,338
|
|
|
|
|
|
|
|
|
|
|
56
25.
|
Finance Income and Costs, Continued
|
|
(2)
|
Details of interest income included in finance income for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Interest income on cash equivalents and deposits
|
|
W
|
9,274
|
|
|
|
12,428
|
|
|
|
|
Interest income on installment receivables and others
|
|
|
11,286
|
|
|
|
12,587
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
20,560
|
|
|
|
25,015
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of interest expense included in finance costs for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Interest expense on bank overdrafts and borrowings
|
|
W
|
14,697
|
|
|
|
20,030
|
|
Interest expense on debentures
|
|
|
189,078
|
|
|
|
198,317
|
|
Others
|
|
|
37,833
|
|
|
|
46,848
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
241,608
|
|
|
|
265,195
|
|
|
|
|
|
|
|
|
|
|
57
25.
|
Finance Income and Costs, Continued
|
|
(4)
|
Finance income and costs by categories of financial instruments for the years ended December 31, 2015 and 2014 are as follows. Bad debt expenses (reversal of allowance for doubtful accounts) for accounts receivable
trade, loans and receivables are excluded and are explained in Note 6.
|
|
(i)
|
Finance income and costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
Finance
income(*)
|
|
|
Finance
costs
|
|
|
Finance
income
|
|
|
Finance
costs
|
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial asset at fair value through profit or loss
|
|
W
|
1,927
|
|
|
|
4,932
|
|
|
|
11,530
|
|
|
|
1,352
|
|
Available-for-sale financial assets
|
|
|
23,164
|
|
|
|
54,973
|
|
|
|
23,981
|
|
|
|
57
|
|
Loans and receivables
|
|
|
31,426
|
|
|
|
11,296
|
|
|
|
35,377
|
|
|
|
15,682
|
|
Derivative designated as hedging instrument
|
|
|
|
|
|
|
657
|
|
|
|
7,998
|
|
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
56,517
|
|
|
|
71,858
|
|
|
|
78,886
|
|
|
|
17,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liability at fair value through profit or loss
|
|
|
5,188
|
|
|
|
526
|
|
|
|
|
|
|
|
10,369
|
|
Financial liability measured as amortized cost
|
|
|
25
|
|
|
|
241,807
|
|
|
|
3,390
|
|
|
|
265,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
5,213
|
|
|
|
242,333
|
|
|
|
3,390
|
|
|
|
275,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
61,730
|
|
|
|
314,191
|
|
|
|
82,276
|
|
|
|
293,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
It does not include
W
184,664 million of dividends income paid by subsidiaries and associates for the year ended December 31, 2015.
|
|
(ii)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Financial Assets:
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
(121,528
|
)
|
|
|
(66,103
|
)
|
Derivative designated as hedging instrument
|
|
|
(575
|
)
|
|
|
(16,374
|
)
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
(122,103
|
)
|
|
|
(82,477
|
)
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
Derivative designated as hedging instrument
|
|
|
1,977
|
|
|
|
(21,801
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
(120,126
|
)
|
|
|
(104,278
|
)
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Details of impairment losses for financial assets for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Bad debt for accounts receivable - trade
|
|
W
|
37,715
|
|
|
|
27,313
|
|
Bad debt for accounts receivable - other
|
|
|
15,328
|
|
|
|
15,873
|
|
Bad debt for accounts receivable - Available-for-sale financial assets
|
|
|
54,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
107,174
|
|
|
|
43,186
|
|
|
|
|
|
|
|
|
|
|
58
|
(1)
|
Income tax expenses for the years ended December 31, 2015 and 2014 consist of the following:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Current tax expense
|
|
|
|
|
|
|
|
|
Current tax payable
|
|
W
|
404,172
|
|
|
|
169,456
|
|
Adjustments recognized in the period for current tax of prior periods
|
|
|
8,885
|
|
|
|
(14,223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
413,057
|
|
|
|
155,233
|
|
|
|
|
|
|
|
|
|
|
Deferred tax expense
|
|
|
|
|
|
|
|
|
Changes in net deferred tax assets
|
|
|
(88,602
|
)
|
|
|
100,275
|
|
Tax directly charged to equity
|
|
|
38,228
|
|
|
|
37,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(50,374
|
)
|
|
|
137,976
|
|
|
|
|
|
|
|
|
|
|
Income tax for continuing operation
|
|
W
|
362,683
|
|
|
|
293,209
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2015 and 2014 is attributable to the following:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Income taxes at statutory income tax rate
|
|
W
|
355,143
|
|
|
|
319,401
|
|
Non-taxable income
|
|
|
(75,647
|
)
|
|
|
(33,653
|
)
|
Non-deductible expenses
|
|
|
40,481
|
|
|
|
60,082
|
|
Tax credit and tax reduction
|
|
|
(25,611
|
)
|
|
|
(33,581
|
)
|
Changes in unrealizable deferred taxes
|
|
|
63,744
|
|
|
|
21,982
|
|
Others (income tax refund, etc.)
|
|
|
4,573
|
|
|
|
(41,022
|
)
|
|
|
|
|
|
|
|
|
|
Income tax for continuing operation
|
|
W
|
362,683
|
|
|
|
293,209
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
W
|
38,799
|
|
|
|
21,104
|
|
Gain or loss on valuation of derivatives
|
|
|
(448
|
)
|
|
|
12,188
|
|
Remeasurement of defined benefit liabilities
|
|
|
(123
|
)
|
|
|
4,409
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
38,228
|
|
|
|
37,701
|
|
|
|
|
|
|
|
|
|
|
59
26.
|
Income Tax Expense, Continued
|
|
(4)
|
Details of changes in deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
Beginning
|
|
|
Deferred tax
expense
(income)
|
|
|
Directly added to
(deducted from)
equity
|
|
|
Ending
|
|
Deferred tax assets (liabilities) related to temporary differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
W
|
46,672
|
|
|
|
4,671
|
|
|
|
|
|
|
|
51,343
|
|
Accrued interest income
|
|
|
(1,538
|
)
|
|
|
(278
|
)
|
|
|
|
|
|
|
(1,816
|
)
|
Available-for-sale financial assets
|
|
|
11,043
|
|
|
|
32,829
|
|
|
|
38,799
|
|
|
|
82,671
|
|
Investments in subsidiaries and associates
|
|
|
69,052
|
|
|
|
2,973
|
|
|
|
|
|
|
|
72,025
|
|
Property and equipment (depreciation)
|
|
|
(344,488
|
)
|
|
|
46,035
|
|
|
|
|
|
|
|
(298,453
|
)
|
Provisions
|
|
|
6,485
|
|
|
|
(5,113
|
)
|
|
|
|
|
|
|
1,372
|
|
Retirement benefit obligation
|
|
|
9,386
|
|
|
|
(1,826
|
)
|
|
|
(123
|
)
|
|
|
7,437
|
|
Gain or loss on valuation of derivatives
|
|
|
24,969
|
|
|
|
|
|
|
|
(448
|
)
|
|
|
24,521
|
|
|
|
|
|
|
Gain or loss on foreign currency translation
|
|
|
19,327
|
|
|
|
191
|
|
|
|
|
|
|
|
19,518
|
|
Goodwill relevant to leased line
|
|
|
4,433
|
|
|
|
(720
|
)
|
|
|
|
|
|
|
3,713
|
|
Unearned revenue (activation fees)
|
|
|
25,977
|
|
|
|
(23,912
|
)
|
|
|
|
|
|
|
2,065
|
|
Others
|
|
|
(16,194
|
)
|
|
|
(4,476
|
)
|
|
|
|
|
|
|
(20,670
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(144,876
|
)
|
|
|
50,374
|
|
|
|
38,228
|
|
|
|
(56,274
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
26.
|
Income Tax Expense, Continued
|
|
(4)
|
Details of changes in deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
|
|
Beginning
|
|
|
Deferred tax
expense
(income)
|
|
|
Directly added to
(deducted from)
equity
|
|
|
Ending
|
|
Deferred tax assets (liabilities) related to temporary differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
W
|
43,352
|
|
|
|
3,320
|
|
|
|
|
|
|
|
46,672
|
|
Accrued interest income
|
|
|
(1,375
|
)
|
|
|
(163
|
)
|
|
|
|
|
|
|
(1,538
|
)
|
Available-for-sale financial assets
|
|
|
(9,725
|
)
|
|
|
(336
|
)
|
|
|
21,104
|
|
|
|
11,043
|
|
Investments in subsidiaries and associates
|
|
|
85,298
|
|
|
|
(16,246
|
)
|
|
|
|
|
|
|
69,052
|
|
Property and equipment (depreciation)
|
|
|
(308,657
|
)
|
|
|
(35,831
|
)
|
|
|
|
|
|
|
(344,488
|
)
|
Provisions
|
|
|
13,049
|
|
|
|
(6,564
|
)
|
|
|
|
|
|
|
6,485
|
|
Retirement benefit obligation
|
|
|
7,906
|
|
|
|
(2,929
|
)
|
|
|
4,409
|
|
|
|
9,386
|
|
Gain or loss on valuation of derivatives
|
|
|
12,781
|
|
|
|
|
|
|
|
12,188
|
|
|
|
24,969
|
|
Gain or loss on foreign currency translation
|
|
|
19,580
|
|
|
|
(253
|
)
|
|
|
|
|
|
|
19,327
|
|
Tax free reserve for research and manpower development
|
|
|
(30,064
|
)
|
|
|
30,064
|
|
|
|
|
|
|
|
|
|
Goodwill relevant to leased line
|
|
|
31,025
|
|
|
|
(26,592
|
)
|
|
|
|
|
|
|
4,433
|
|
Unearned revenue (activation fees)
|
|
|
53,412
|
|
|
|
(27,435
|
)
|
|
|
|
|
|
|
25,977
|
|
Others
|
|
|
38,817
|
|
|
|
(55,011
|
)
|
|
|
|
|
|
|
(16,194
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(44,601
|
)
|
|
|
(137,976
|
)
|
|
|
37,701
|
|
|
|
(144,876
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61
26.
|
Income Tax Expense, Continued
|
|
(5)
|
Details of temporary differences not recognized as deferred tax assets in the statements of financial position as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
|
Allowance for doubtful accounts
|
|
W
|
77,405
|
|
|
|
77,405
|
|
Investments in subsidiaries and associates
|
|
|
980,860
|
|
|
|
717,455
|
|
Other temporary differences
|
|
|
51,150
|
|
|
|
51,150
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,109,415
|
|
|
|
846,010
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Basic earnings per share
|
|
1)
|
Basic earnings per share for the years ended December 31, 2015 and 2014 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Profit for the year
|
|
W
|
1,106,761
|
|
|
|
1,028,541
|
|
Interest on hybrid bond
|
|
|
(16,840
|
)
|
|
|
(16,840
|
)
|
|
|
|
|
|
|
|
|
|
Profit for the year on common shares
|
|
|
1,089,921
|
|
|
|
1,011,701
|
|
Weighted average number of common shares outstanding
|
|
|
71,551,966
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (In won)
|
|
W
|
15,233
|
|
|
|
14,262
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
The weighted average number of common shares outstanding for the years ended December 31, 2015 and 2014 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Outstanding common shares at January 1, 2015
|
|
W
|
80,745,711
|
|
|
|
80,745,711
|
|
Effect of treasury stock
|
|
|
(9,193,745
|
)
|
|
|
(9,809,375
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding at December 31, 2015
|
|
W
|
71,551,966
|
|
|
|
70,936,336
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Diluted earnings per share
|
For the years ended December 31, 2015 and 2014, there were no
potentially dilutive shares. Therefore, diluted earnings per share for the years ended December 31, 2015 and 2014 are the same as basic earnings per share.
62
|
(1)
|
Details of dividends declared
|
Details of dividend declared for the years ended December 31,
2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for face value and share data)
|
|
Year
|
|
Dividend type
|
|
Number of shares
outstanding
|
|
|
Face value
(In won)
|
|
|
Dividend
ratio
|
|
|
Dividends
|
|
2015
|
|
Cash dividends (interim)
|
|
|
72,629,160
|
|
|
|
500
|
|
|
|
200
|
%
|
|
W
|
72,629
|
|
|
Cash dividends (year-end)
|
|
|
70,609,160
|
|
|
|
500
|
|
|
|
1,800
|
%
|
|
|
635,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
708,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
Cash dividends (interim)
|
|
|
70,936,336
|
|
|
|
500
|
|
|
|
200
|
%
|
|
W
|
70,937
|
|
|
Cash dividends (year-end)
|
|
|
70,936,336
|
|
|
|
500
|
|
|
|
1,680
|
%
|
|
|
595,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
666,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Dividends payout ratio
|
Dividends payout ratios for the years ended December 31, 2015 and 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Year
|
|
Dividends calculated
|
|
|
Profit
|
|
|
Dividends payout ratio
|
|
2015
|
|
W
|
708,111
|
|
|
|
1,106,761
|
|
|
|
63.98
|
%
|
2014
|
|
W
|
666,802
|
|
|
|
1,028,541
|
|
|
|
64.83
|
%
|
|
(3)
|
Dividends yield ratio
|
Dividends yield ratios for the years ended December 31, 2015 and 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won)
|
|
Year
|
|
Dividend type
|
|
Dividend per share
|
|
|
Closing price at
settlement
|
|
|
Dividend yield
ratio
|
|
2015
|
|
Cash dividends
|
|
|
10,000
|
|
|
|
215,500
|
|
|
|
4.64
|
%
|
2014
|
|
Cash dividends
|
|
|
9,400
|
|
|
|
268,000
|
|
|
|
3.51
|
%
|
63
29.
|
Categories of Financial Instruments
|
|
(1)
|
Financial assets by categories as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
December 31, 2015
|
|
|
|
Financial
assets at fair
value
through
profit or loss
|
|
|
Available-for-
sale financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated as
hedged item
|
|
|
Total
|
|
Cash and cash equivalents
|
|
W
|
|
|
|
|
|
|
|
|
431,666
|
|
|
|
|
|
|
|
431,666
|
|
Financial instruments
|
|
|
|
|
|
|
|
|
|
|
131,562
|
|
|
|
|
|
|
|
131,562
|
|
Short-term investment securities
|
|
|
|
|
|
|
92,262
|
|
|
|
|
|
|
|
|
|
|
|
92,262
|
|
Long-term investment securities(*1)
|
|
|
7,073
|
|
|
|
719,432
|
|
|
|
|
|
|
|
|
|
|
|
726,505
|
|
Accounts receivable - trade
|
|
|
|
|
|
|
|
|
|
|
1,528,751
|
|
|
|
|
|
|
|
1,528,751
|
|
Loans and other receivables(*2)
|
|
|
|
|
|
|
|
|
|
|
521,723
|
|
|
|
|
|
|
|
521,723
|
|
Derivative financial assets
|
|
|
6,277
|
|
|
|
|
|
|
|
|
|
|
|
133,646
|
|
|
|
139,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,350
|
|
|
|
811,694
|
|
|
|
2,613,702
|
|
|
|
133,646
|
|
|
|
3,572,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
December 31, 2014
|
|
|
|
Financial
assets at fair
value through
profit or loss
|
|
|
Available-
for-sale
financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated as
hedged item
|
|
|
Total
|
|
Cash and cash equivalents
|
|
W
|
|
|
|
|
|
|
|
|
248,311
|
|
|
|
|
|
|
|
248,311
|
|
Financial instruments
|
|
|
|
|
|
|
|
|
|
|
143,069
|
|
|
|
|
|
|
|
143,069
|
|
Short-term investment securities
|
|
|
|
|
|
|
197,161
|
|
|
|
|
|
|
|
|
|
|
|
197,161
|
|
Long-term investment securities(*1)
|
|
|
7,817
|
|
|
|
600,980
|
|
|
|
|
|
|
|
|
|
|
|
608,797
|
|
Accounts receivable - trade
|
|
|
|
|
|
|
|
|
|
|
1,559,281
|
|
|
|
|
|
|
|
1,559,281
|
|
Loans and other receivables(*2)
|
|
|
|
|
|
|
|
|
|
|
575,597
|
|
|
|
|
|
|
|
575,597
|
|
Derivative financial assets
|
|
|
8,713
|
|
|
|
|
|
|
|
|
|
|
|
59,015
|
|
|
|
67,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
16,530
|
|
|
|
798,141
|
|
|
|
2,526,258
|
|
|
|
59,015
|
|
|
|
3,399,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Long-term investment securities of which the embedded derivative (conversion right option), which should be separated from the main contract, could not be separately measured, were designated as financial assets at fair
value through profit or loss.
|
64
29.
|
Categories of Financial Instruments, Continued
|
|
(1)
|
Financial assets by categories as of December 31, 2015 and 2014 are as follows, Continued:
|
(*2)
|
Details of loans and other receivables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Short-term loans
|
|
W
|
47,741
|
|
|
|
67,989
|
|
Accounts receivable other
|
|
|
264,741
|
|
|
|
305,990
|
|
Accrued income
|
|
|
7,505
|
|
|
|
6,354
|
|
Long-term loans
|
|
|
35,080
|
|
|
|
38,457
|
|
Guarantee deposits
|
|
|
166,656
|
|
|
|
156,807
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
521,723
|
|
|
|
575,597
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Financial liabilities by categories as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Financial
liabilities at
fair value
through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized
cost
|
|
|
Derivative
financial
instruments
designated as
hedged item
|
|
|
Total
|
|
Derivative financial liabilities
|
|
W
|
|
|
|
|
|
|
|
|
89,296
|
|
|
|
89,296
|
|
Borrowings
|
|
|
|
|
|
|
315,561
|
|
|
|
|
|
|
|
315,561
|
|
Debentures (*1)
|
|
|
155,704
|
|
|
|
5,457,421
|
|
|
|
|
|
|
|
5,613,125
|
|
|
|
|
|
|
Accounts payable other and others (*2)
|
|
|
|
|
|
|
2,171,141
|
|
|
|
|
|
|
|
2,171,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
155,704
|
|
|
|
7,944,123
|
|
|
|
89,296
|
|
|
|
8,189,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
Financial
liabilities at
fair value
through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized
cost
|
|
|
Derivative
financial
instruments
designated as
hedged item
|
|
|
Total
|
|
Derivative financial liabilities
|
|
W
|
|
|
|
|
|
|
|
|
130,889
|
|
|
|
130,889
|
|
Borrowings
|
|
|
|
|
|
|
292,280
|
|
|
|
|
|
|
|
292,280
|
|
Debentures (*1)
|
|
|
110,365
|
|
|
|
4,744,502
|
|
|
|
|
|
|
|
4,854,867
|
|
|
|
|
|
|
Accounts payable other and others (*2)
|
|
|
|
|
|
|
2,582,608
|
|
|
|
|
|
|
|
2,582,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
110,365
|
|
|
|
7,619,390
|
|
|
|
130,889
|
|
|
|
7,860,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65
29.
|
Categories of Financial Instruments, Continued
|
|
(2)
|
Financial liabilities by categories as of December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
Bonds classified as financial liabilities at fair value through profit or loss as of December 31, 2015 and 2014 are structured bonds and they were designated as financial liabilities at fair value through profit or loss
in order to settle the difference of the measurement bases of accounting profit or loss between the related derivatives and bonds.
|
(*2)
|
Details of accounts payable other and other payables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Accounts payable other
|
|
W
|
927,170
|
|
|
|
1,086,485
|
|
Withholdings
|
|
|
|
|
|
|
3
|
|
Accrued expenses
|
|
|
540,770
|
|
|
|
615,488
|
|
Current portion of long-term payables - other
|
|
|
120,185
|
|
|
|
189,389
|
|
Long-term payables - other
|
|
|
550,964
|
|
|
|
657,001
|
|
Other non-current liabilities
|
|
|
32,052
|
|
|
|
34,242
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,171,141
|
|
|
|
2,582,608
|
|
|
|
|
|
|
|
|
|
|
30.
|
Financial Risk Management
|
|
(1)
|
Financial risk management
|
The Company 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 Company implements a risk management system to monitor and manage these specific risks.
The Companys financial assets under financial risk management consist of cash and cash equivalents, financial instruments,
available-for-sale financial assets, trade and other receivables. Financial liabilities consist of trade and other payables, borrowings, and debentures.
The Company is exposed to currency risk mainly on exchange fluctuations on
recognized assets and liabilities. The Company manages currency risk by currency forward, etc. if needed to hedge currency risk on business transactions. Currency risk occurs on forecasted transaction and recognized assets and liabilities which are
denominated in a currency other than the functional currency of the Company.
66
30.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
Monetary foreign currency assets and liabilities as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars, thousands of Euros, thousands of Japanese Yen, thousands of other currencies)
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
Foreign
currencies
|
|
|
Won
translation
|
|
|
Foreign
currencies
|
|
|
Won
translation
|
|
USD
|
|
|
61,525
|
|
|
W
|
71,682
|
|
|
|
1,463,959
|
|
|
W
|
1,715,760
|
|
EUR
|
|
|
23,357
|
|
|
|
29,923
|
|
|
|
38
|
|
|
|
48
|
|
JPY
|
|
|
20,688
|
|
|
|
201
|
|
|
|
|
|
|
|
|
|
AUD
|
|
|
|
|
|
|
|
|
|
|
299,022
|
|
|
|
255,097
|
|
CHF
|
|
|
|
|
|
|
|
|
|
|
299,403
|
|
|
|
354,909
|
|
Other
|
|
|
4,992
|
|
|
|
1,148
|
|
|
|
290
|
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
102,954
|
|
|
|
|
|
|
W
|
2,325,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition, the Company has entered into cross currency swaps to hedge against currency risk related to
foreign currency borrowings and debentures. (Refer to Note 16)
As of December 31, 2015, effects on income (loss) before income tax as a
result of change in exchange rate by 10% are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
If increased by 10%
|
|
|
If decreased by 10%
|
|
USD
|
|
W
|
6,336
|
|
|
|
(6,336
|
)
|
EUR
|
|
|
2,954
|
|
|
|
(2,954
|
)
|
JPY
|
|
|
20
|
|
|
|
(20
|
)
|
Others
|
|
|
100
|
|
|
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,410
|
|
|
|
(9,410
|
)
|
|
|
|
|
|
|
|
|
|
The Company has equity securities which include listed and non-listed
securities for its liquidity and operating purpose. As of December 31, 2015, available-for-sale equity instruments measured at fair value amounts to
W
655,845 million.
Since the Companys interest bearing assets are mostly fixed-interest
bearing assets, as such, the Companys revenue and operating cash flow are not influenced by the changes in market interest rates. However, the Company still has interest rate risk arising from borrowings and debentures.
Accordingly, the Company performs various analysis of interest rate risk, which includes refinancing, renewal, alternative financing and
hedging instrument option, to reduce interest rate risk and to optimize its financing.
67
30.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
The Companys interest rate risk arises from floating-rate borrowings and payables. As
of December 31, 2015, floating-rate debentures amount to
W
351,600 million and the Company has entered into interest rate swaps to hedge interest rate risk related to floating-rate borrowings and debentures (Refer to Note 16). If
interest rate only increases (decreases) by 1%, income before income taxes for the year ended December 31, 2015 would not have been changed due to the interest expense from floating-rate borrowings and debentures.
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet his/her contractual obligations. The maximum credit exposure as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Cash and cash equivalents
|
|
W
|
431,636
|
|
|
|
248,281
|
|
Financial instruments
|
|
|
131,562
|
|
|
|
143,069
|
|
Available-for-sale financial assets
|
|
|
2,030
|
|
|
|
8,648
|
|
Accounts receivable - trade
|
|
|
1,528,751
|
|
|
|
1,559,281
|
|
Loans and receivables
|
|
|
521,723
|
|
|
|
575,597
|
|
Derivative financial assets
|
|
|
139,923
|
|
|
|
67,728
|
|
Financial assets at fair value through profit or loss
|
|
|
7,073
|
|
|
|
7,817
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,762,698
|
|
|
|
2,610,421
|
|
|
|
|
|
|
|
|
|
|
To manage credit risk, the Company evaluates the credit worthiness of each customer or counterparty considering
the partys financial information, its own trading records and other factors; based on such information, the Company establishes credit limits for each customer or counterparty.
For the year ended December 31, 2015, the Company has no trade and other receivables or loans which have indications of significant impairment
loss or are overdue for a prolonged period. As a result, the Company believes that the possibility of default is remote. Also, the Companys credit risk can rise due to transactions with financial institutions related to its cash and cash
equivalents, financial instruments and derivatives. To minimize such risk, the Company has a policy to deal with high credit worthy financial institutions. The amount of maximum exposure to credit risk of the Company is the carrying amount of
financial assets as of December 31, 2015.
In addition, the aging of trade and other receivables that are overdue at the end of the
reporting period but not impaired is stated in Note 6 and the analysis of financial assets that are individually determined to be impaired at the end of the reporting period is stated in Note 25.
68
30.
|
Financial Risk Management, Continued
|
|
(1)
|
Financial risk management, Continued
|
The Companys approach to managing liquidity is to ensure that it will
always maintain sufficient cash equivalents balance and have enough liquidity through various committed credit lines. The Company maintains flexibly enough liquidity under credit lines through active operating activities.
Contractual maturities of financial liabilities as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than 1
year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
Borrowings(*1)
|
|
W
|
315,561
|
|
|
|
324,352
|
|
|
|
245,693
|
|
|
|
57,965
|
|
|
|
20,694
|
|
Debentures (*1)
|
|
|
5,613,125
|
|
|
|
6,874,448
|
|
|
|
763,194
|
|
|
|
3,012,017
|
|
|
|
3,099,237
|
|
Accounts payable - other and others (*2)
|
|
|
2,171,141
|
|
|
|
2,223,315
|
|
|
|
1,552,820
|
|
|
|
549,376
|
|
|
|
121,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,099,827
|
|
|
|
9,422,115
|
|
|
|
2,561,707
|
|
|
|
3,619,358
|
|
|
|
3,241,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company does not expect that the cash flows included in the maturity analysis could occur significantly
earlier or at different amounts.
(*1)
|
Includes estimated interest to be paid and excludes discounts on bonds.
|
(*2)
|
Excludes discounts on accounts payable-other and others.
|
As of December 31, 2015, periods
which cash flows from cash flow hedge derivatives is expected to be incurred are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than 1
year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
Assets
|
|
W
|
133,646
|
|
|
|
143,638
|
|
|
|
3,266
|
|
|
|
109,438
|
|
|
|
30,934
|
|
Liabilities
|
|
|
(89,296
|
)
|
|
|
(92,498
|
)
|
|
|
(4,882
|
)
|
|
|
(87,616
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
44,350
|
|
|
|
51,140
|
|
|
|
(1,616
|
)
|
|
|
21,822
|
|
|
|
30,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company 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 balance. The overall strategy of the Company is the same as that of the Company as of and for the year ended December 31, 2015.
The Company monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total
equity which are extracted from the financial statements.
69
30.
|
Financial Risk Management, Continued
|
|
(2)
|
Capital management, Continued
|
Debt-equity ratio as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
Liability
|
|
W
|
9,367,480
|
|
|
|
9,170,241
|
|
Equity
|
|
|
13,779,460
|
|
|
|
13,542,221
|
|
|
|
|
|
|
|
|
|
|
Debt-equity ratio
|
|
|
67.98
|
%
|
|
|
67.72
|
%
|
|
|
|
|
|
|
|
|
|
|
1)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
Carrying
amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Financial assets that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
13,350
|
|
|
|
|
|
|
|
6,277
|
|
|
|
7,073
|
|
|
|
13,350
|
|
Derivative financial assets
|
|
|
133,646
|
|
|
|
|
|
|
|
133,646
|
|
|
|
|
|
|
|
133,646
|
|
Available-for-sale financial assets
|
|
|
655,845
|
|
|
|
579,282
|
|
|
|
47,262
|
|
|
|
29,301
|
|
|
|
655,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
802,841
|
|
|
|
579,282
|
|
|
|
187,185
|
|
|
|
36,374
|
|
|
|
802,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(*1)
|
|
W
|
431,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(*1,2)
|
|
|
155,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others(*1)
|
|
|
2,050,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments(*1)
|
|
|
131,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,769,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
155,704
|
|
|
|
|
|
|
|
155,704
|
|
|
|
|
|
|
|
155,704
|
|
Derivative financial liabilities
|
|
|
89,296
|
|
|
|
|
|
|
|
89,296
|
|
|
|
|
|
|
|
89,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
245,000
|
|
|
|
|
|
|
|
245,000
|
|
|
|
|
|
|
|
245,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
315,561
|
|
|
|
|
|
|
|
316,726
|
|
|
|
|
|
|
|
316,726
|
|
Debentures
|
|
|
5,457,421
|
|
|
|
|
|
|
|
5,887,378
|
|
|
|
|
|
|
|
5,887,378
|
|
Accounts payable - other and others(*1)
|
|
|
2,171,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,944,123
|
|
|
|
|
|
|
|
6,204,104
|
|
|
|
|
|
|
|
6,204,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
30.
|
Financial Risk Management, Continued
|
|
(3)
|
Fair value, Continued
|
|
2)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
Carrying
amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Financial assets that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
16,530
|
|
|
|
|
|
|
|
8,713
|
|
|
|
7,817
|
|
|
|
16,530
|
|
Derivative financial assets
|
|
|
59,015
|
|
|
|
|
|
|
|
59,015
|
|
|
|
|
|
|
|
59,015
|
|
Available-for-sale financial assets
|
|
|
586,675
|
|
|
|
490,741
|
|
|
|
47,002
|
|
|
|
48,932
|
|
|
|
586,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
662,220
|
|
|
|
490,741
|
|
|
|
114,730
|
|
|
|
56,749
|
|
|
|
662,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(*1)
|
|
W
|
248,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(*1,2)
|
|
|
211,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others(*1)
|
|
|
2,134,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments(*1)
|
|
|
143,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,737,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that can be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
110,365
|
|
|
|
|
|
|
|
110,365
|
|
|
|
|
|
|
|
110,365
|
|
Derivative financial liabilities
|
|
|
130,889
|
|
|
|
|
|
|
|
130,889
|
|
|
|
|
|
|
|
130,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
241,254
|
|
|
|
|
|
|
|
241,254
|
|
|
|
|
|
|
|
241,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that cannot be measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
292,280
|
|
|
|
|
|
|
|
300,048
|
|
|
|
|
|
|
|
300,048
|
|
Debentures
|
|
|
4,744,502
|
|
|
|
|
|
|
|
5,103,527
|
|
|
|
|
|
|
|
5,103,527
|
|
Accounts payable - other and others(*1)
|
|
|
2,582,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,619,390
|
|
|
|
|
|
|
|
5,403,575
|
|
|
|
|
|
|
|
5,403,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Does not include fair values of financial assets and liabilities of which fair values have not been measured as carrying amounts are closed to the reasonable approximate fair values.
|
(*2)
|
Equity instruments which do not have quoted price in an active market for the identical instruments (inputs for Level 1) are measured at cost in accordance with K-IFRS 1039 as such equity instruments cannot be reliably
measured using other methods.
|
71
30.
|
Financial Risk Management, Continued
|
|
(3)
|
Fair value, Continued
|
Fair value of the financial instruments that are traded in an active market
(available-for-sale financial assets, financial liabilities at fair value through profit or loss, etc.) is measured based on the bid price at the end of the reporting date.
The Company uses various valuation methods for valuation of fair value of financial instruments that are not traded in an active market. Fair
value of available-for-sale securities is determined using the market approach methods and financial assets through profit or loss are measured using the option pricing model. In addition, derivative financial contracts and long-term liabilities are
measured using the present value methods. Inputs used to such valuation methods include swap rate, interest rate, and risk premium, and the Company performs valuation using the inputs which are consistent with natures of assets, liabilities being
evaluated.
Interest rates used by the Company for the fair value measurement as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
Interest rate
|
|
Derivative instruments
|
|
|
1.92 ~ 2.37
|
%
|
Borrowings and Debentures
|
|
|
2.12 ~ 2.45
|
%
|
|
3)
|
There have been no transfers from Level 2 to Level 1 in 2015 and changes of financial assets classified as Level 3 for the year ended December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning
|
|
|
Gain for
the period
|
|
|
Other
comprehensive
loss
|
|
|
Disposal
|
|
|
Balance at ending
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
7,817
|
|
|
|
(744
|
)
|
|
|
|
|
|
|
|
|
|
|
7,073
|
|
Available-for-sale financial assets
|
|
|
48,932
|
|
|
|
|
|
|
|
(4,749
|
)
|
|
|
(14,882
|
)
|
|
|
29,301
|
|
72
30.
|
Financial Risk Management, Continued
|
|
(4)
|
Enforceable master netting agreement or similar agreement
|
Carrying amount of financial
instruments recognized of which offset agreements are applicable as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(In millions of won)
|
|
Gross financial
instruments
recognized
|
|
|
Gross offset
financial
instruments
recognized
|
|
|
Net financial
instruments
presented on the
statements of
financial position
|
|
|
Relevant amount not offset on
the statements of financial
position
|
|
|
Net amount
|
|
|
|
|
|
Financial
instruments
|
|
|
Cash
collaterals
received
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
55,673
|
|
|
|
|
|
|
|
55,673
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
|
|
Accounts receivable trade and others
|
|
|
129,527
|
|
|
|
(113,003
|
)
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
185,200
|
|
|
|
(113,003
|
)
|
|
|
72,197
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
89,734
|
|
|
|
|
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
34,061
|
|
Accounts payable other and others
|
|
|
113,003
|
|
|
|
(113,003
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
202,737
|
|
|
|
(113,003
|
)
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
|
|
|
|
34,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
(In millions of won)
|
|
Gross financial
instruments
recognized
|
|
|
Gross offset
financial
instruments
recognized
|
|
|
Net financial
instruments
presented on the
statements of
financial position
|
|
|
Relevant amount not offset on
the statements of financial
position
|
|
|
Net amount
|
|
|
|
|
|
Financial
instruments
|
|
|
Cash
collaterals
received
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
48,057
|
|
|
|
|
|
|
|
48,057
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
2,165
|
|
Accounts receivable trade and others
|
|
|
128,794
|
|
|
|
(117,568
|
)
|
|
|
11,226
|
|
|
|
|
|
|
|
|
|
|
|
11,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
176,851
|
|
|
|
(117,568
|
)
|
|
|
59,283
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
13,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
45,892
|
|
|
|
|
|
|
|
45,892
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
|
|
Accounts payable other and others
|
|
|
117,568
|
|
|
|
(117,568
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
163,460
|
|
|
|
(117,568
|
)
|
|
|
45,892
|
|
|
|
(45,892
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The amount applicable by enforceable master netting agreement according to ISDA (International Swap and Derivatives Association).
|
73
31.
|
Transactions with Related Parties
|
|
(1)
|
List of related parties
|
|
|
|
Relationship
|
|
Interest rate
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
Subsidiaries
|
|
SK Planet Co., Ltd. and 36 others(*)
|
Joint venture
|
|
Dogus Planet, Inc. and three others
|
Associates
|
|
SK hynix Inc. and 52 others
|
Affiliates
|
|
The Ultimate Controlling Entitys subsidiaries and associates, etc.
|
(*)
|
As of December 31, 2015, subsidiaries of the Company are as follows:
|
|
|
|
|
|
|
|
Company
|
|
Ownership
percentage (%)
|
|
|
Types of business
|
SK Telink Co., Ltd.
|
|
|
83.5
|
|
|
Telecommunication and MVNO service
|
M&Service Co., Ltd.
|
|
|
100.0
|
|
|
Data base and internet website service
|
SK Communications Co., Ltd.
|
|
|
64.6
|
|
|
Internet website services
|
Stonebridge Cinema Fund
|
|
|
55.2
|
|
|
Investment association
|
Commerce Planet Co., Ltd.
|
|
|
100.0
|
|
|
Online shopping mall operation agency
|
SK Broadband Co., Ltd.
|
|
|
100.0
|
|
|
Telecommunication services
|
K-net Culture and Contents Venture Fund
|
|
|
59.0
|
|
|
Investment association
|
Fitech Focus Limited Partnership II
|
|
|
66.7
|
|
|
Investment association
|
Open Innovation Fund
|
|
|
98.9
|
|
|
Investment association
|
PS&Marketing Corporation
|
|
|
100.0
|
|
|
Communications device retail business
|
Service Ace Co., Ltd.
|
|
|
100.0
|
|
|
Customer center management service
|
Service Top Co., Ltd.
|
|
|
100.0
|
|
|
Customer center management service
|
Network O&S Co., Ltd.
|
|
|
100.0
|
|
|
Base station maintenance service
|
SK Planet Co., Ltd.
|
|
|
100.0
|
|
|
Telecommunication service
|
Neosnetworks Co., Ltd.
|
|
|
83.9
|
|
|
Guarding of facilities
|
IRIVER LIMITED
|
|
|
49.0
|
|
|
Manufacturing of media and sound equipment
|
iriver Enterprise Ltd.
|
|
|
100.0
|
|
|
Management of Chinese subsidiary
|
iriver America Inc.
|
|
|
100.0
|
|
|
Sales and marketing in North America
|
iriver Inc.
|
|
|
100.0
|
|
|
Sales and marketing in North America
|
iriver China Co., Ltd.
|
|
|
100.0
|
|
|
Manufacturing of MP3,4 and domestic sales in China
|
Dongguan iriver Electronics Co., Ltd.
|
|
|
100.0
|
|
|
Manufacturing of e-book and domestic sales in China
|
Groovers JP Ltd.
|
|
|
100.0
|
|
|
Digital music contents sourcing and distribution service
|
SK Telecom China Holdings Co., Ltd.
|
|
|
100.0
|
|
|
Investment association
|
SK Global Healthcare Business Group., Ltd.
|
|
|
100.0
|
|
|
Investment association
|
SK Planet Japan K.K.
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
SKT Vietnam PTE. Ltd.
|
|
|
73.3
|
|
|
Telecommunication service
|
SK Planet Global PTE. Ltd.
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
SKP GLOBAL HOLDINGS PTE. LTD.
|
|
|
100.0
|
|
|
Investment association
|
SKT Americas, Inc.
|
|
|
100.0
|
|
|
Information gathering and consulting
|
SKP America LLC.
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
YTK Investment Ltd.
|
|
|
100.0
|
|
|
Investment association
|
Atlas Investment
|
|
|
100.0
|
|
|
Investment association
|
Technology Innovation Partners, L.P.
|
|
|
100.0
|
|
|
Investment association
|
SK Telecom China Fund I L.P.
|
|
|
100.0
|
|
|
Investment association
|
Entrix Co., Ltd.
|
|
|
100.0
|
|
|
Cloud streaming service
|
shopkick Management Company, Inc.
|
|
|
95.2
|
|
|
Investment association
|
shopkick, Inc.
|
|
|
100.0
|
|
|
Mileage-based online transaction App Development
|
74
31.
|
Transactions with Related Parties, Continued
|
|
(2)
|
Compensation for the key management
|
The Company considers registered directors who have
substantial role and responsibility in planning, operating, and controlling of the business as key management. The compensation given to such key management for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Salaries
|
|
W
|
1,971
|
|
|
|
2,600
|
|
Provision for retirement benefits
|
|
|
626
|
|
|
|
907
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,597
|
|
|
|
3,507
|
|
|
|
|
|
|
|
|
|
|
Compensation for the key management includes salaries, non-monetary salaries and contributions made in relation
to the pension plan.
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
2015
|
|
Scope
|
|
Company
|
|
Operating
revenue and
others
|
|
|
Operating
expense
and others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Loans
collection
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*1)
|
|
W
|
7,353
|
|
|
|
249,193
|
|
|
|
152,752
|
|
|
|
|
|
|
|
|
|
|
SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.)(*2,3)
|
|
|
369
|
|
|
|
207,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,722
|
|
|
|
456,386
|
|
|
|
152,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
127,851
|
|
|
|
551,219
|
|
|
|
42,413
|
|
|
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
11,073
|
|
|
|
799,503
|
|
|
|
1,150
|
|
|
|
|
|
|
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
4,862
|
|
|
|
176,581
|
|
|
|
20,251
|
|
|
|
|
|
|
|
|
|
|
|
SK Planet Co., Ltd.(*4)
|
|
|
192,763
|
|
|
|
542,945
|
|
|
|
10,488
|
|
|
|
|
|
|
|
|
|
|
|
SK Telink Co., Ltd.
|
|
|
62,527
|
|
|
|
23,642
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
Service Ace Co., Ltd.
|
|
|
7,621
|
|
|
|
144,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Top Co., Ltd.
|
|
|
8,403
|
|
|
|
157,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
11,739
|
|
|
|
37,453
|
|
|
|
592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
426,839
|
|
|
|
2,433,432
|
|
|
|
74,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
1,670
|
|
|
|
40,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
85
|
|
|
|
3,717
|
|
|
|
12,432
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*5)
|
|
|
51,548
|
|
|
|
2,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,799
|
|
|
|
18,017
|
|
|
|
|
|
|
|
|
|
|
|
204
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
21,414
|
|
|
|
16,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others(*6)
|
|
|
2,793
|
|
|
|
5,494
|
|
|
|
680
|
|
|
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79,309
|
|
|
|
86,014
|
|
|
|
13,112
|
|
|
|
690
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
31.
|
Transactions with Related Parties, Continued
|
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
Scope
|
|
Company
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Loans
collection
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
W
|
14,106
|
|
|
|
19,245
|
|
|
|
159,712
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
6,933
|
|
|
|
17,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks service Co., Ltd.
|
|
|
10,269
|
|
|
|
49,427
|
|
|
|
5,985
|
|
|
|
|
|
|
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
156
|
|
|
|
9,393
|
|
|
|
76,575
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
17,475
|
|
|
|
43,436
|
|
|
|
140,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,939
|
|
|
|
138,662
|
|
|
|
382,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
562,809
|
|
|
|
3,111,136
|
|
|
|
623,320
|
|
|
|
690
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entitys investor using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Company, and changed its name to SK
Holdings Co., Ltd.
|
(*2)
|
These relates to transactions occurred until July 31, 2015 before the merger with SK C&C Co., Ltd.
|
(*3)
|
Operating expense and others include
W
191,416 million of dividends paid by the Company.
|
(*4)
|
Operating revenue and others include
W
140,834 million of dividend recognized due to the declaration of dividend in kind of SK Planet Co., Ltd., a subsidiary of the Company.
|
(*5)
|
Operating revenue and others include
W
43,830 million of dividends received from SK hynix Inc.
|
(*6)
|
Operating revenue and others include
W
2,103 million and
W
227 million of dividends received from Korea IT Fund and UniSK, respectively.
|
76
31.
|
Transactions with Related Parties, Continued
|
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2014
|
|
Scope
|
|
Company
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Loans
collection
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.(*1)
|
|
W
|
491
|
|
|
|
218,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
141,640
|
|
|
|
561,418
|
|
|
|
27,564
|
|
|
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
13,683
|
|
|
|
833,013
|
|
|
|
2,309
|
|
|
|
|
|
|
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
4,830
|
|
|
|
170,737
|
|
|
|
581
|
|
|
|
|
|
|
|
|
|
|
|
SK Planet Co., Ltd.
|
|
|
60,502
|
|
|
|
524,311
|
|
|
|
16,301
|
|
|
|
|
|
|
|
|
|
|
|
SK Telink Co., Ltd.
|
|
|
52,811
|
|
|
|
36,196
|
|
|
|
227
|
|
|
|
|
|
|
|
|
|
|
|
Service Ace Co., Ltd.
|
|
|
7,252
|
|
|
|
143,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Top Co., Ltd.
|
|
|
6,617
|
|
|
|
153,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
12,851
|
|
|
|
33,220
|
|
|
|
1,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300,186
|
|
|
|
2,455,908
|
|
|
|
48,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
1,808
|
|
|
|
42,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
14
|
|
|
|
3,614
|
|
|
|
9,646
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.
|
|
|
9,628
|
|
|
|
3,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK USA, Inc.
|
|
|
|
|
|
|
2,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
18
|
|
|
|
22,122
|
|
|
|
|
|
|
|
|
|
|
|
204
|
|
|
|
HanaSK Card Co., Ltd.(*2)
|
|
|
25,295
|
|
|
|
3,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
1,409
|
|
|
|
6,140
|
|
|
|
|
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,172
|
|
|
|
83,400
|
|
|
|
9,646
|
|
|
|
45
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
2,382
|
|
|
|
39,412
|
|
|
|
304,489
|
|
|
|
|
|
|
|
|
|
|
|
SK C&C Co., Ltd.
|
|
|
5,134
|
|
|
|
259,168
|
|
|
|
112,158
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
12,442
|
|
|
|
182,104
|
|
|
|
4,029
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
10,321
|
|
|
|
28,293
|
|
|
|
1,600
|
|
|
|
|
|
|
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
272
|
|
|
|
8,564
|
|
|
|
121,488
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
13,977
|
|
|
|
20,628
|
|
|
|
8,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,528
|
|
|
|
538,169
|
|
|
|
552,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
383,377
|
|
|
|
3,295,646
|
|
|
|
610,535
|
|
|
|
45
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
31.
|
Transactions with Related Parties, Continued
|
|
(3)
|
Transactions with related parties for the years ended December 31, 2015 and 2014 are as follows, Continued:
|
(*1)
|
Operating expense and others include
W
191,416 million of dividends paid by the Company.
|
(*2)
|
For the year ended December 31, 2014, due to merger between Hana SK Card Co., Ltd., the Companys associate, and KEB Card Co., Ltd., the Company exchanged 57,647,058 shares of Hana SK Card Co., Ltd. with 67,627,587
shares of the surviving company, KEB HanaCard Co., Ltd.
|
|
(4)
|
Account balances as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts receivable-
trade, and others
|
|
|
Accounts payable
trade, and others
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*)
|
|
W
|
|
|
|
|
1,100
|
|
|
|
107,995
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
|
|
|
|
2,160
|
|
|
|
24,847
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
|
|
|
|
614
|
|
|
|
62,592
|
|
|
|
Network O&S Co., Ltd.
|
|
|
|
|
|
|
665
|
|
|
|
33,658
|
|
|
|
SK Planet Co., Ltd.
|
|
|
|
|
|
|
6,722
|
|
|
|
36,874
|
|
|
|
SK Telink Co., Ltd.
|
|
|
|
|
|
|
10,026
|
|
|
|
3,068
|
|
|
|
Service Ace Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
20,684
|
|
|
|
Service Top Co., Ltd.
|
|
|
|
|
|
|
63
|
|
|
|
21,772
|
|
|
|
Others
|
|
|
|
|
|
|
4,722
|
|
|
|
17,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,972
|
|
|
|
220,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
4,987
|
|
|
|
SK hynix Inc.
|
|
|
|
|
|
|
4,360
|
|
|
|
155
|
|
|
|
SK Wyverns Baseball Club., Ltd.
|
|
|
1,017
|
|
|
|
4,502
|
|
|
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,890
|
|
|
|
38,412
|
|
|
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
|
|
|
|
|
|
|
|
Hana Card Co., Ltd.
|
|
|
|
|
|
|
1,771
|
|
|
|
7,262
|
|
|
|
Others
|
|
|
|
|
|
|
74
|
|
|
|
1,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,054
|
|
|
|
49,119
|
|
|
|
14,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering and Construction Co., Ltd.
|
|
|
|
|
|
|
648
|
|
|
|
14,877
|
|
|
|
SK Networks Co., Ltd.
|
|
|
|
|
|
|
656
|
|
|
|
924
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
8,963
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
|
|
|
|
117
|
|
|
|
3,585
|
|
|
|
SK Innovation Co., Ltd.
|
|
|
|
|
|
|
2,133
|
|
|
|
292
|
|
|
|
Others
|
|
|
|
|
|
|
2,581
|
|
|
|
39,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,135
|
|
|
|
67,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
24,054
|
|
|
|
81,326
|
|
|
|
410,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
31.
|
Transactions with Related Parties, Continued
|
|
(4)
|
Account balances as of December 31, 2015 and 2014 are as follows, Continued:
|
(*)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entitys investor using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Company, and changed its name to SK
Holdings Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2014
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts receivable-
trade, and others
|
|
|
Accounts payable
and others
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
W
|
|
|
|
|
89
|
|
|
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
|
|
|
|
3,236
|
|
|
|
38,432
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
|
|
|
|
566
|
|
|
|
101,431
|
|
|
|
Network O&S Co., Ltd.
|
|
|
|
|
|
|
1,201
|
|
|
|
12,981
|
|
|
|
SK Planet Co., Ltd.
|
|
|
|
|
|
|
9,711
|
|
|
|
51,991
|
|
|
|
SK Telink Co., Ltd.
|
|
|
|
|
|
|
10,306
|
|
|
|
5,665
|
|
|
|
Service Ace Co., Ltd.
|
|
|
|
|
|
|
436
|
|
|
|
19,972
|
|
|
|
Service Top Co., Ltd.
|
|
|
|
|
|
|
887
|
|
|
|
21,386
|
|
|
|
Others
|
|
|
|
|
|
|
8,890
|
|
|
|
15,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,233
|
|
|
|
266,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
1,780
|
|
|
|
SK hynix Inc.
|
|
|
|
|
|
|
2,561
|
|
|
|
2,763
|
|
|
|
SK Wyverns Baseball Club., Ltd.
|
|
|
1,221
|
|
|
|
|
|
|
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,200
|
|
|
|
38,412
|
|
|
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
|
|
|
|
|
|
|
|
HanaSK Card Co., Ltd.
|
|
|
|
|
|
|
1,867
|
|
|
|
38
|
|
|
|
Others
|
|
|
|
|
|
|
226
|
|
|
|
840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,568
|
|
|
|
43,066
|
|
|
|
5,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering and Construction Co., Ltd.
|
|
|
|
|
|
|
359
|
|
|
|
3,754
|
|
|
|
SK C&C Co., Ltd.
|
|
|
|
|
|
|
718
|
|
|
|
76,777
|
|
|
|
SK Networks Co., Ltd.
|
|
|
|
|
|
|
2,027
|
|
|
|
4,766
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
|
|
|
|
12
|
|
|
|
2,004
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
|
|
|
|
282
|
|
|
|
1,559
|
|
|
|
SK Innovation Co., Ltd.
|
|
|
|
|
|
|
1,510
|
|
|
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
|
|
|
2,592
|
|
|
|
6,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,500
|
|
|
|
95,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
24,568
|
|
|
|
85,888
|
|
|
|
367,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79
31.
|
Transactions with Related Parties, Continued
|
|
(5)
|
As of December 31, 2015, there are no collateral or guarantee provided by related parties to the Company, nor by the Company to related parties.
|
|
(6)
|
During the year ended December 31, 2014, the company acquired convertible bonds with a face value of
W
6,000 million, respectively, from Health Connect Co., Ltd. at the face value. During the year ended
December 31, 2015, the Company exercised the conversion right for the convertible bonds of Health Connect Co., Ltd. As a result of this transaction, investments in associates have increased by
W
5,900 million.
|
|
(7)
|
The Company made an additional investment in associates and joint ventures during the year ended December 31, 2015. (Refer to Note 8)
|
During the year ended December 31, 2012, the Company disposed a
portion of its property and equipment and investment property, and entered into lease agreements with respect to those assets. This sale and leaseback transaction is considered as an operating lease.
In addition, the Company subleased portion of the leased assets. The Company recognized lease payment of
W
14,539 million and
W
14,075 million, respectively, relating to the above operating lease agreement and lease revenue of
W
9,540 million and
W
7,933 million, respectively, through a sublease agreement for the years
December 31, 2015 and 2014. Future lease payments and lease revenue from the above operating lease agreement and sublease agreement as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
Lease payments
|
|
|
Lease revenue
|
|
Less than 1 year
|
|
W
|
14,975
|
|
|
|
9,540
|
|
1~5 years
|
|
|
53,819
|
|
|
|
29,784
|
|
More than 5 years
|
|
|
27,555
|
|
|
|
13,496
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
96,349
|
|
|
|
52,820
|
|
|
|
|
|
|
|
|
|
|
80
33.
|
Statements of Cash Flows
|
|
(1)
|
Adjustments for income and expenses from operating activities for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Gain on foreign currency translation
|
|
W
|
(770
|
)
|
|
|
(1,373
|
)
|
Interest income
|
|
|
(20,560
|
)
|
|
|
(25,015
|
)
|
Dividends
|
|
|
(200,296
|
)
|
|
|
(13,048
|
)
|
Gain relating to financial assets at fair value through profit or loss
|
|
|
|
|
|
|
(2,817
|
)
|
Gain on disposal of long-term investments securities
|
|
|
(5,058
|
)
|
|
|
(9,807
|
)
|
Gain on disposal of property and equipment and intangible assets
|
|
|
(3,827
|
)
|
|
|
(3,676
|
)
|
Gain on valuation of derivatives
|
|
|
(1,927
|
)
|
|
|
(8,713
|
)
|
Gain on settlement of derivatives
|
|
|
|
|
|
|
(7,998
|
)
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
(5,188
|
)
|
|
|
|
|
Other income
|
|
|
(7,545
|
)
|
|
|
|
|
Loss on foreign currency translation
|
|
|
318
|
|
|
|
167
|
|
Bad debt for accounts receivable - trade
|
|
|
37,715
|
|
|
|
27,313
|
|
Bad debt for accounts receivable - other
|
|
|
15,328
|
|
|
|
15,873
|
|
Loss on disposal of long-term investments securities
|
|
|
842
|
|
|
|
57
|
|
Other finance costs
|
|
|
54,131
|
|
|
|
|
|
Loss relating to financial assets at fair value through profit or loss
|
|
|
744
|
|
|
|
1,352
|
|
Depreciation and amortization
|
|
|
2,279,906
|
|
|
|
2,208,719
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
15,644
|
|
|
|
17,493
|
|
Impairment loss on property and equipment and intangible assets
|
|
|
2,015
|
|
|
|
18,490
|
|
Interest expenses
|
|
|
241,608
|
|
|
|
265,195
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
526
|
|
|
|
10,369
|
|
Loss on settlement of derivatives
|
|
|
4,845
|
|
|
|
672
|
|
Loss relating to investments in subsidiaries and associates
|
|
|
3,819
|
|
|
|
57,593
|
|
Provision for retirement benefits
|
|
|
35,380
|
|
|
|
34,570
|
|
Income tax expense
|
|
|
362,683
|
|
|
|
293,209
|
|
Other expenses
|
|
|
1,385
|
|
|
|
7,764
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,811,718
|
|
|
|
2,886,389
|
|
|
|
|
|
|
|
|
|
|
81
33.
|
Statements of Cash Flows, Continued
|
|
(2)
|
Changes in assets and liabilities from operating activities for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Accounts receivable trade
|
|
W
|
(6,926
|
)
|
|
|
(73,295
|
)
|
Accounts receivable other
|
|
|
26,179
|
|
|
|
67,681
|
|
Advance payments
|
|
|
(33,746
|
)
|
|
|
(56,834
|
)
|
Prepaid expenses
|
|
|
(6,150
|
)
|
|
|
(3,233
|
)
|
Inventories
|
|
|
(23,047
|
)
|
|
|
265
|
|
Long-term prepaid expenses
|
|
|
(1,252
|
)
|
|
|
(5,544
|
)
|
Guarantee deposits
|
|
|
(9,359
|
)
|
|
|
(1,798
|
)
|
Accounts payable other
|
|
|
(201,996
|
)
|
|
|
(247,067
|
)
|
Advanced receipts
|
|
|
10,952
|
|
|
|
(4,451
|
)
|
Withholdings
|
|
|
(193,428
|
)
|
|
|
226,952
|
|
Deposits received
|
|
|
(8,024
|
)
|
|
|
(2,944
|
)
|
Accrued expenses
|
|
|
(89,685
|
)
|
|
|
(48,641
|
)
|
Unearned revenue
|
|
|
(99,545
|
)
|
|
|
(117,136
|
)
|
Provisions
|
|
|
(11,134
|
)
|
|
|
(38,491
|
)
|
Long-term provisions
|
|
|
(4,557
|
)
|
|
|
29,959
|
|
Plan assets
|
|
|
(19,788
|
)
|
|
|
(41,185
|
)
|
Retirement benefit payment
|
|
|
(29,795
|
)
|
|
|
(21,887
|
)
|
Others
|
|
|
2,195
|
|
|
|
2,751
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(699,106
|
)
|
|
|
(334,898
|
)
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Significant non-cash transactions for the years ended December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Transfer of other property and equipment and others to construction in progress
|
|
W
|
729,944
|
|
|
|
1,082,767
|
|
Transfer of construction in progress to property and equipment and intangible assets
|
|
|
1,756,866
|
|
|
|
1,891,236
|
|
Accounts payable - other related to acquisition of property and equipment and intangible assets
|
|
|
42,678
|
|
|
|
(222,345
|
)
|
82
Independent Accountants Review Report on Internal Accounting
Control System
English translation of a Report Originally Issued in Korean
To the Representative Director of
SK Telecom Co., Ltd.
We have reviewed the accompanying Report on the Operations of Internal Accounting Control System (IACS) of SK Telecom Co., Ltd. (the
Company) As of December 31, 2015. The Companys management is responsible for designing and maintaining effective IACS and for its assessment of the effectiveness of IACS. Our responsibility is to review managements
assessment and issue a report based on our review. In the accompanying report of managements assessment of IACS, the Companys management stated: Based on the assessment on the operations of the IACS, the Companys IACS has
been effectively designed and is operating as of December 31, 2015, in all material respects, in accordance with the IACS Framework issued by the Internal Accounting Control System Operation Committee.
We conducted our review in accordance with IACS Review Standards, issued by the Korean Institute of Certified Public Accountants. Those Standards require that
we plan and perform the review to obtain assurance of a level less than that of an audit as to whether Report on the Operations of Internal Accounting Control System is free of material misstatement. Our review consists principally of obtaining an
understanding of the Companys IACS, inquiries of company personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances. We have not performed an audit and, accordingly, we do not
express an audit opinion.
A companys IACS is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, however, IACS may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on our review, nothing has come to our attention that Report on the Operations of Internal Accounting Control System as of December 31, 2015 is not
prepared in all material respects, in accordance with IACS Framework issued by the Internal Accounting Control System Operation Committee.
This report
applies to the Companys IACS in existence as of December 31, 2015. We did not review the Companys IACS subsequent to December 31, 2015. This report has been prepared for Korean regulatory purposes, pursuant to the External Audit
Law, and may not be appropriate for other purposes or for other users.
February 23, 2016
83
Report on the Assessment of Internal Accounting Control System
(IACS)
English translation of a Report Originally Issued in Korean
To the Board of Directors and Audit Committee of
SK Telecom
Co., Ltd.
I, as the Internal Accounting Control Officer (IACO) of SK Telecom Co., Ltd. (the Company), assessed the status of the
design and operation of the Companys IACS as of December 31, 2015.
The Companys management including IACO is responsible for designing
and operating IACS. I, as the IACO, assessed whether the IACS has been appropriately designed and is effectively operating to prevent and detect any error or fraud which may cause any misstatement of the financial statements, for the purpose of
preparing and disclosing reliable financial statements reporting. I, as the IACO, applied the IACS Framework established by the Korea Listed Companies Association for the assessment of design and operation of the IACS.
Based on the assessment of the IACS, the Companys IACS has been appropriately designed and is operating effectively as of December 31, 2015, in all
material respects, in accordance with the IACS Framework issued by the Internal Accounting Control System Operation Committee.
February 3, 2016
|
/s/ Internal Accounting Control Officer
|
|
/s/ Chief Executive Officer
|
84
2.
|
Approval of Amendments to the Articles of Incorporation
|
The proposed amendments are
as follows:
|
|
|
|
|
Current
|
|
Proposed Amendment
|
|
Remarks
|
|
|
|
Article 2. Objectives
① (Text omitted)
② In order to achieve the above objectives, the Company carries on the following businesses:
1.~19. (Text omitted)
20. Any other incidental businesses relating to the foregoing activities (amended on March
18, 2016).
③ (Text omitted)
|
|
Article 2. Objectives
① (Same as the present text)
② (Same as the present text)
1.~19. (Same as the present text)
20. Electric utility business including smart grid business, etc. (newly established on March 18, 2016); and
21. Any other incidental businesses relating to the foregoing activities (amended on
March 18, 2016).
③ (Same as the present text)
|
|
Addition of related business due to the promotion of new business opportunities
|
|
|
|
|
|
Addendum No. 25 (as of March 18, 2016)
Article 1. Date of Effectiveness
These Articles of Incorporation shall take effect as of March 18, 2016.
|
|
|
85
3.
|
Approval of the Appointment of Directors
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Term
|
|
Profile
|
|
Remarks
|
|
|
|
|
|
|
|
|
|
¨
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B.A. in Sociology, Korea University
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
M.B.A., Clark University
|
|
|
|
|
|
|
|
|
|
|
|
¨
|
|
Career
|
|
|
|
|
|
|
|
|
Cho, Dae Sik
|
|
3 years
|
|
|
|
|
|
CEO, SK Holdings Co., Ltd. (13~ Current)
|
|
Current
Director
|
|
|
|
|
|
|
|
|
CFO, Head of Finance Division and Risk Mgmt. & Corporate Auditing
Office, SK Holdings (12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Business Mgmt. Office, SK Holdings (10~11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Corporate Business Mgmt. Office, SK Holdings (09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SVP, Finance Mgmt. & Strategy Office, SK Holdings (07 ~08)
|
|
|
|
(2)
|
Independent Non-Executive Director
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Term
|
|
Profile
|
|
Remarks
|
|
|
|
|
|
|
|
|
|
¨
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B.A. in Archeology, Seoul National University (73)
|
|
|
|
|
|
|
|
|
|
|
|
¨
|
|
Career
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisor, Bae, Kim & Lee LLC (Law firm) (08 ~ Current)
|
|
|
|
|
|
|
|
Oh, Dae Shick
|
|
3 years
|
|
|
|
Head of Seoul Regional Tax Office (07~08)
|
|
Current Director
|
|
|
|
|
|
|
Head of Investigation Dept., Korea National Tax Service
(06~07)
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Policy Promotion Dept., Korea National Tax Service (05~06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Investigation Dept., Seoul Regional Tax Office (03~05)
|
|
|
86
4.
|
Approval of the Election of a Member of the Audit Committee
|
|
(1)
|
Audit Committee Member
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Term
|
|
Profile
|
|
Remarks
|
|
|
|
|
|
|
|
|
|
¨
|
|
Education
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B.A. in Archeology, Seoul National University (73)
|
|
|
|
|
|
|
|
|
|
|
|
¨
|
|
Career
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outside Director, CJ Corporation (11 ~ Current)
|
|
|
|
|
|
|
|
Oh, Dae Shick
|
|
3 years
|
|
|
|
Outside Director, Doosan Corporation (10 ~ To resign)
|
|
Current
Director
|
|
|
|
|
|
|
Advisor, Bae, Kim & Lee LLC (Law firm) (08 ~
Current)
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Seoul Regional Tax Office (07~08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Investigation Dept., Korea National Tax Service (06~07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Policy Promotion Dept., Korea National Tax Service (05~06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head of Investigation Dept., Seoul Regional Tax Office (03~05)
|
|
|
87
5.
|
Approval of Ceiling Amount of the Remuneration of Directors
|
The number of directors and
total amount and maximum authorized amount of compensation of directors are as follows:
|
|
|
|
|
Classification
|
|
Fiscal year 2015
|
|
Fiscal year 2016
|
|
|
|
Number of directors (Number of independent non-executive directors)
|
|
6 persons (4 persons)
|
|
6 persons (4 persons)
|
|
|
|
Total amount and maximum authorized amount of compensation of directors
|
|
Won 12 billion
|
|
Won 12 billion
|
88
6.
|
Approval of Amendment to the Remuneration Policy for Executives
|
According to the
position grade-based [performance management standard] adopted in 2012 with respect to the Companys executives, amendments to the severance pay policy for executives are proposed as below.
< Severance Payout Rate Grade >
|
|
|
|
|
|
|
Before amendment
|
|
Position
|
|
Years of
Service
|
|
Payout
Rate
|
|
|
|
|
Chairman
|
|
1
|
|
|
6.0
|
|
|
|
|
Vice Chairman
|
|
1
|
|
|
5.5
|
|
President
|
|
1
|
|
|
|
|
Senior Executive Vice President
|
|
1
|
|
|
3.5
|
|
Executive Vice
President
|
|
1
|
|
|
|
|
Senior Vice President
|
|
1
|
|
|
2.5
|
|
|
|
|
|
|
|
|
After amendment
|
|
Grade
|
|
Years of
Service
|
|
Payout
Rate
|
|
|
|
|
Chairman,
Vice Chairman
|
|
1
|
|
|
4.0
|
|
Grade E
|
|
1
|
|
Grade D
|
|
1
|
|
|
|
|
Grade C
|
|
1
|
|
|
3.5
|
|
Grade B
|
|
1
|
|
|
|
|
Grade A
|
|
1
|
|
|
2.5
|
|
The severance payment
amount is to be calculated as the sum of the relevant executives monthly salary multiplied by the payout ratio corresponding to the executives grade for each year of service. The proposed amendments are to be effective April 1,
2016. The payout rate with respect to periods of service prior to April 1, 2016 will be determined on the basis of the severance payout rate scale prior to the above amendments.
89