REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered | ||
five-ninths |
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₩100 per share |
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Auditor Name: |
Auditor Location: |
Auditor Firm ID: 0 |
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Item 4. |
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Item 10.C. |
87 |
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Item 10.D. |
87 |
Item 10.E. |
91 |
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Item 10.F. |
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Item 10.G. |
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Item 10.H. |
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Item 10.I. |
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Item 19. |
107 |
• | our ability to anticipate and respond to various competitive factors affecting the telecommunications industry, including new services that may be introduced, changes in consumer preferences, economic conditions and discount pricing strategies by competitors; |
• | our continued implementation of fifth generation wireless technology, which we refer to as “5G” technology; |
• | our plans for capital expenditures in 2022 for a range of projects, including investments to expand and improve our 5G network, investments to maintain our fourth generation long-term evolution (“LTE”) network and long-term evolution advanced (“LTE-A”) services, investments to improve and expand our Wi-Fi network, investments to develop our Internet of Things (“IoT”) solutions and platform services business portfolio, including artificial intelligence (“AI”) solutions, investments in data infrastructure, investments in research and development of 5G technology, investments in businesses that can potentially leverage our 5G network, and funding for mid- to long-term research and development projects, as well as other initiatives, primarily related to the development of new growth businesses, as well as initiatives related to our ongoing businesses in the ordinary course; |
• | our efforts to make significant investments to build, develop and broaden our businesses, including developing our next-generation growth businesses in cloud computing, data centers, smart factories, subscription services, metaverse, media and other innovative products and services and to create synergies among our businesses, including through the adaptation of AI technology; |
• | our ability to comply with governmental rules and regulations, including the regulations of the Government related to telecommunications providers, the Mobile Device Distribution Improvement Act (“MDDIA”), rules related to our status as a “market-dominating business entity” under the Korean Monopoly Regulation and Fair Trade Act (the “Fair Trade Act”) and the effectiveness of steps we have taken to comply with such regulations; |
• | our ability to effectively manage our bandwidth and to timely and efficiently implement new bandwidth-efficient technologies and our intention to participate in, and acquire additional bandwidth pursuant to, frequency bandwidth auctions held, or other allocations of bandwidth, by the MSIT; |
• | our expectations and estimates related to interconnection fees, rates charged by our competitors, regulatory fees, operating costs and expenditures, working capital requirements, principal repayment obligations with respect to long-term borrowings, bonds and short-term borrowings, and research and development expenditures and other financial estimates; |
• | the success of our various joint ventures, investments, strategic alliances and cooperation efforts as well as other corporate restructuring activities, including the Spin-off; |
• | our ability to successfully attract and retain subscribers of our telecommunications-related businesses and customers of our other businesses; and |
• | the growth of the telecommunications and other industries in which we operate in Korea and other markets and the effect that economic, political or social conditions have on our number of subscribers and customers and results of operations. |
Item 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
Item 1.A. |
Directors and Senior Management |
Item 1.B. |
Advisers |
Item 1.C. |
Auditors |
Item 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
Item 3. |
KEY INFORMATION |
Item 3.A. |
[Reserved] |
Item 3.B. |
Capitalization and Indebtedness |
Item 3.C. |
Reasons for the Offer and Use of Proceeds |
Item 3.D. |
Risk Factors |
• | an increase in unemployment among, and/or a decrease in disposable income of, our customers, who may not be able to meet payment obligations or otherwise choose to decrease their spending levels, which in turn may decrease demand for some of our products and services or cause an increase in delinquent subscriber accounts; |
• | a slowdown in the rate of subscriber migration to our 5G service, which generally entails higher-priced subscription plans and wireless devices; |
• | disruptions in operations, and/or a decrease in the demand for products and services, of our corporate customers, which in turn may decrease such customers’ demand for our services and products; |
• | service disruptions, outages and performance problems due to capacity constraints caused by an overwhelming number of people accessing our services simultaneously; |
• | disruptions in the supply of mobile handsets or telecommunications equipment from our vendors (or components of such mobile handsets and equipment such as semiconductors) as well as in the installation of our network infrastructure; |
• | unstable global and Korean financial markets, which may adversely affect our ability to meet capital funding needs on a timely and cost-effective basis; |
• | a decrease in the fair value of our investments in companies that may be adversely affected by the pandemic; and |
• | depreciation of the Won against major foreign currencies, which in turn may increase the cost of imported equipment necessary for expansion and enhancement of our telecommunications infrastructure. |
• | an increase in the amount of Won required by us to make interest and principal payments on our foreign currency-denominated debt; and |
• | an increase, in Won terms, of the costs of equipment that we purchase from overseas sources which we pay for in Dollars or other foreign currencies. |
• | the amounts a registered holder or beneficial owner of ADSs will receive from the American Depositary Receipt (“ADR”) depositary in respect of dividends, which will be paid in Won to the ADR depositary and converted by the ADR depositary into Dollars; |
• | the Dollar value of the proceeds that a holder will receive upon sale in Korea of our common shares; and |
• | the secondary market price of our ADSs. |
• | declines in consumer confidence and a slowdown in consumer spending, including as a result of the ongoing global COVID-19 pandemic; |
• | adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of deteriorating economic and trade relations between the United |
States and China and increased uncertainties resulting from the United Kingdom’s exit from the European Union; |
• | adverse changes or volatility in foreign currency reserve levels, commodity prices (including oil prices), exchange rates (including fluctuation of the U.S. dollar, Euro or Japanese Yen exchange rates or revaluation of the Chinese Renminbi), interest rates, inflation rates or stock markets; |
• | the occurrence of severe health epidemics in Korea and other parts of the world (such as the ongoing global COVID-19 pandemic); |
• | a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail or small- and medium-sized enterprise borrowers in Korea; |
• | the economic impact of any pending or future free trade agreements or any changes to existing free trade agreements; |
• | a deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy; |
• | increased sovereign default risks in select countries and the resulting adverse effects on the global financial markets; |
• | a deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea due to the Government’s policies to increase minimum wages and limit working hours of employees; |
• | investigations of large Korean conglomerates and their senior management for possible misconduct; |
• | social and labor unrest; |
• | substantial changes in the market prices of Korean real estate; |
• | a substantial decrease in tax revenues and a substantial increase in the Government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, in particular in light of the Government’s ongoing efforts to provide emergency relief payments to households and emergency loans to corporations in need of funding in light of the ongoing COVID-19 pandemic, which together would likely lead to a national budget deficit as well as an increase in the Government’s debt; |
• | financial problems or lack of progress in the restructuring of Korean conglomerates, other large troubled companies, their suppliers or the financial sector; |
• | loss of investor confidence arising from corporate accounting irregularities and corporate governance issues concerning certain Korean conglomerates; |
• | increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea; |
• | geopolitical uncertainty and the risk of further attacks by terrorist groups around the world; |
• | political uncertainty or increasing strife among or within political parties in Korea; |
• | hostilities, political or social tensions involving Russia (including the invasion of Ukraine by Russia and ensuing actions that the United States and other countries may take) and the resulting adverse effects on the global supply of oil and other natural resources and the global financial markets; |
• | hostilities or political or social tensions involving oil producing countries in the Middle East (including a potential escalation of hostilities between the United States and Iran) and North Africa and any material disruption in the global supply of oil or sudden increase in the price of oil; |
• | natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners; and |
• | an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States. |
• | North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and has conducted six rounds of nuclear tests since October 2006, including claimed detonations of hydrogen bombs and warheads that can be mounted on ballistic missiles. Over the years, North Korea has continued to conduct a series of missile tests, including ballistic missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. In February 2016, the Government also closed the inter-Korea Gaesong Industrial Complex in response to North Korea’s fourth nuclear test in January 2016. Internationally, the United Nations Security Council has passed a series of resolutions condemning North Korea’s actions and significantly expanding the scope of sanctions applicable to North Korea, most recently in December 2017 in response to North Korea’s intercontinental ballistic missile test in November 2017. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea. |
• | In March 2010, a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board. The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. Moreover, in November 2010, North Korea fired more than one hundred artillery shells that hit Korea’s Yeonpyeong Island near the Northern Limit Line, which acts as the de facto maritime boundary between Korea and North Korea on the west coast of the Korean peninsula, causing casualties and significant property damage. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation. |
• | a registration statement filed by us under the Securities Act is in effect with respect to those shares; or |
• | the offering and sale of those shares is exempt from, or is not subject to, the registration requirements of the Securities Act. |
Item 4. |
INFORMATION ON THE COMPANY |
Item 4.A. |
History and Development of the Company |
As of December 31, |
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2021 |
2020 |
2019 |
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(In thousands, except for per population amounts) |
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Population of Korea (1) |
51,639 | 51,829 | 51,850 | |||||||||
Wireless Subscribers (2) |
71,920 | 69,542 | 67,937 | |||||||||
Wireless Subscribers per 100 Population |
139.3 | 134.2 | 131.0 | |||||||||
Telephone Lines in Service |
12,212 | 12,859 | 13,600 | |||||||||
Telephone Lines per 100 Population |
23.6 | 24.8 | 26.2 |
(1) | Source: The Ministry of the Interior and Safety. |
(2) | Includes subscribers of non-mobile phone wireless services, including services for tablet computers, wearable devices, IoT devices and others. |
As of December 31, |
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2021 |
2020 |
2019 |
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(In thousands, except for percentage data) |
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Number of Wireless Internet-Enabled Handsets |
60,689 | 59,886 | 58,812 | |||||||||
Number of Smartphones |
53,465 | 52,223 | 51,132 | |||||||||
Total Number of Wireless Subscribers (1) |
71,920 | 69,542 | 67,937 | |||||||||
Penetration of Wireless Internet-Enabled Handsets |
84.4 | % | 86.1 | % | 86.6 | % | ||||||
Penetration of Smartphones |
74.3 | % | 75.1 | % | 75.3 | % |
(1) | Includes subscribers of non-mobile phone wireless services, including services for tablet computers, wearable devices, IoT devices and others. |
As of December 31, |
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2021 |
2020 |
2019 |
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(In thousands) |
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Number of Broadband Internet Access Subscribers (1) |
22,944 | 22,327 | 21,762 | |||||||||
Number of IPTV Subscribers |
20,628 | 19,364 | 18,021 |
(1) | Includes subscribers accessing Internet service using digital subscriber line, or xDSL, connections; cable modem connections; local area network, or LAN, connections; fiber-to-the-home, |
Item 4.B. |
Business Overview |
• | cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions, platform services, cloud services, smart factory solutions, subscription services and metaverse platform-based services; |
• | fixed-line telecommunications services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including IPTV and cable TV services) and business communications services; and |
• | other businesses, which include our T-commerce business and certain other miscellaneous businesses. |
• | Maintain our leadership in the wireless services business by offering innovative 5G services and customer-oriented products and services and evolve into a subscription-based marketing company hands-on experience services, metaverse platform-based services and e-sports. In addition, we will continue to analyze the needs of our subscribers leveraging our AI technology and provide products and services that meet such needs. Furthermore, we intend to broaden the range of our product and service offerings for subscription to new business areas such as rental, gaming and overseas shipment and further expand our subscriber base to promote our growth and evolve into a “subscription-based marketing company.” |
• | Develop our next-generation growth businesses through hyper-collaboration Spin-off Portfolio Companies. We have formed strategic partnerships with industry leaders to create synergies in various areas, such as 5G cloud gaming, mobile edge computing (“MEC”) and e-sports, and we are continually expanding the areas for collaboration. We aim to create an environment for “hyper-collaboration” to develop and foster our next-generation growth businesses, including media (consisting of broadcast and advertising platform, content and T-commerce businesses), enterprise (consisting of data center, cloud and AIoT businesses), AIVERSE (consisting of |
subscription, metaverse and AI agent businesses) and Connected Intelligence (consisting of future technology areas such as UAM and autonomous driving). |
• | Develop our technological capabilities and new products and services to support our 5G network. |
• | Pursue sustainable management to seek mutual growth with the broader society |
As of December 31, |
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2021 |
2020 |
2019 |
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(in thousands) |
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Network |
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5G |
9,911 | 5,476 | 2,084 | |||||||||
LTE |
20,198 | 22,848 | 25,022 | |||||||||
WCDMA |
1,660 | 2,920 | 3,986 | |||||||||
CDMA (1) |
115 | 139 | 443 | |||||||||
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Total |
31,884 | 31,384 | 31,535 |
(1) | In July 2020, we terminated our second generation wireless services using our CDMA network. CDMA subscribers as of December 31, 2021 consist of subscribers who have not upgraded to our other networks or terminated their subscriptions as of such date. |
• | Cloud services ultra-low latency communications, focusing on the media, logistics, healthcare, finance and manufacturing industries. We completed the construction of MEC infrastructure at four strategic locations during 2020 and we launched our first MEC-based cloud service, “5GX Edge Cloud,” in collaboration with Amazon Web Services in December 2020. We have also entered into strategic partnerships with a number of other leading cloud service providers to pursue further collaboration on MEC-based cloud services. |
• | Smart Factory Solutions |
• | Subscription service e-commerce platform. T Universe Pass All offers an additional membership benefit of the subscriber’s choice among various options, including discounts from one of several participating food and beverage store chains and delivery service providers, online video streaming and music services, and access to a cloud storage service. In order to continue expanding our T Universe membership base, we plan to pursue additional business partnerships with popular consumer brands and service providers to increase the number and appeal of the businesses that participate in the T Universe subscription program and continue to invest in improving our customers’ user experience. |
• | Metaverse. non-fungible token technologies. |
Wireless network technology |
Date of commencement of services |
Maximum data transmission speed |
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LTE |
July 2011 | 75 Mbps | ||||
LTE-A |
June 2013 | 150 Mbps | ||||
Wideband LTE-A |
June 2014 | 225 Mbps | ||||
Tri-band LTE-A |
December 2014 | 300 Mbps | ||||
Five-band LTE-A |
June 2017 | 700 Mbps | ||||
Tri-band LTE-A with 4x4 MIMO |
June 2017 | 900 Mbps | ||||
Four-band LTE-A with 4x4 MIMO |
February 2018 | 1 Gbps | ||||
Five-band LTE-A with 4x4 MIMO |
March 2019 | 1.15 Gbps | ||||
Five-band LTE-A with 4x4 MIMO |
March 2020 | 1.25 Gbps |
• | base stations (or cell sites) , |
• | switching stations , |
• | transmission lines , |
As of December 31, |
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2021 |
2020 |
2019 |
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(in thousands) |
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Fixed-Line Telephone (including VoIP) (1) |
3,634 | 3,753 | 3,913 | |||||||||
Broadband Internet (2) |
6,581 | 6,476 | 5,469 | |||||||||
IPTV (3) |
6,137 | 5,657 | 5,193 | |||||||||
Cable TV |
2,863 | 2,929 | — |
(1) | Includes subscribers to VoIP services of SK Broadband and, in the cases of as of December 31, 2019 and 2020, SK Telink Co., Ltd. (“SK Telink”). SK Broadband acquired SK Telink’s VoIP and ancillary service business in April 2021. |
(2) | Excludes dedicated broadband Internet lines for Internet cafes. |
(3) | Includes subscribers to SK Broadband’s B tv service and video-on-demand |
Market Share (%) |
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SK Telecom |
KT |
LG U+ |
Others |
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Wireless Service (1) |
44.3 | % | 31.0 | % | 24.7 | % | — | % | ||||||||
LTE Service (1) |
42.1 | 30.4 | 27.6 | — | ||||||||||||
5G Service (1) |
50.7 | 25.6 | 23.7 | — | ||||||||||||
Fixed-Line Telephone (including VoIP) |
15.7 | 56.3 | 19.0 | 9.1 | ||||||||||||
Broadband Internet |
28.7 | 41.2 | 20.7 | 9.4 | ||||||||||||
Pay TV (2) |
25.0 | (3) |
36.2 | (4) |
25.3 | (5) |
13.4 |
(1) | Includes MVNO subscribers that lease the wireless networks of the respective mobile network operator. |
(2) | Includes video-on-demand |
(3) | Consists of 17.1% from our IPTV service and 8.0% from our cable TV service. |
(4) | Consists of 25.4% from KT’s IPTV service, 7.2% from its satellite TV service provided through KT Skylife and 3.5% from KT’s cable TV service provided through HCN, which was acquired by KT in August 2021. |
(5) | Consists of 14.9% from LG U+’s IPTV service and 10.5% from its cable TV service provided through LG HelloVision, a subsidiary of LG U+. |
• | entry into the telecommunications industry; |
• | scope of services provided by telecommunications service providers; |
• | allocation of radio spectrum; |
• | setting of technical standards and promotion of technical standardization; |
• | rates, terms and practices of telecommunications service providers; |
• | interconnection and revenue-sharing between telecommunications service providers; |
• | research and development of policy formulation for information and telecommunications; and |
• | competition among telecommunications service providers. |
• | Restriction on debt guarantee among affiliates. |
• | Restriction on cross-investment. |
• | Restrictions on circular investments. |
• | Public notice of board resolution on large-scale transactions with specially related persons. paid-in capital or for Won 5.0 billion or more, the transaction must be approved by a resolution of the member company’s board of directors and the member company must publicly disclose the transaction. |
• | Restrictions on investments by subsidiaries and sub-subsidiaries of holding companies.(“sub-subsidiaries”) are prohibited from investing in, or holding shares of common stock of, domestic affiliates that belong to the same large business group, unless all shares issued by the affiliates are held by the sub-subsidiary. Therefore, we and other subsidiaries of SK Inc. may not invest in any domestic affiliate that is also a member company of the SK Group, except in the case where we invest in our own subsidiary or where another subsidiary of SK Inc. invests in its own subsidiary. |
• | Public notice of the current status of a business group. |
• | revoke our business license; |
• | suspend all or part of our business; or |
• | if the suspension of business is deemed to result in significant inconvenience to our customers or to be detrimental to the public interest, impose a one-time administrative penalty of up to 3.0% of the average of our annual revenue for the preceding three fiscal years. |
• | the acquisition by an entity (and its related parties) of 15.0% or more of the equity of a network service provider; |
• | a change in the largest shareholder of a network service provider; |
• | agreements by a network service provider or its shareholders with foreign governments or parties regarding important business matters of such network service provider, such as the appointment of officers and directors and transfer of businesses; |
• | a deemed foreigner (as discussed above) from a country whose government has entered into a bilateral or multilateral free trade agreement designated by the MSIT with the Government owning in excess of 49.0% of the outstanding voting stock of a network service provider (which became effective on April 20, 2022); and |
• | a change in the shareholder that actually controls a network service provider. |
Item 4.C. |
Organizational Structure |
Item 4.D. |
Property, Plants and Equipment |
Location |
Primary Use |
Approximate Area in Square Feet |
||||
Seoul Metropolitan Area |
Corporate Headquarters |
921,727 | ||||
Regional Headquarters |
608,670 | |||||
Customer Service Centers |
107,277 | |||||
Training Centers |
279,372 | |||||
Central Research and Development Center |
319,789 | |||||
Others (1) |
2,156,633 | |||||
Gyeongsang Provinces |
Regional Headquarters |
384,399 | ||||
Others (1) |
1,133,791 | |||||
Jeolla and Jeju Provinces |
Regional Headquarters |
265,614 | ||||
Others (1) |
768,884 | |||||
Chungcheong Province |
Regional Headquarters |
566,386 | ||||
Others (1) |
674,387 |
(1) | Includes base stations. |
Item 4A. |
UNRESOLVED STAFF COMMENTS |
Item 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Item 5.A. |
Operating Results |
For the Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(In billions of Won) |
||||||||||||
Operating profit pursuant to IFRS as issued by the IASB |
₩ | 1,432.4 | ₩ | 1,035.0 | ₩ | 987.1 | ||||||
Differences: |
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Other income pursuant to IFRS that are classified as other non-operating income pursuant to K-IFRS: |
||||||||||||
Gain on disposal of property and equipment and intangible assets |
(39.1 | ) | (34.6 | ) | (7.8 | ) | ||||||
Others |
(76.6 | ) | (61.1 | ) | (87.8 | ) | ||||||
(115.8 | ) | (95.8 | ) | (95.6 | ) | |||||||
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Other operating expenses pursuant to IFRS that are classified as other non-operating expenses pursuant to K-IFRS: |
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Loss on impairment of property and equipment and intangible assets |
3.1 | 200.7 | 42.8 | |||||||||
Loss on disposal of property and equipment and intangible assets |
28.2 | 25.6 | 23.8 | |||||||||
Donations |
12.8 | 16.1 | 16.8 | |||||||||
Bad debt for accounts receivable ( other |
4.0 | 6.6 | 3.6 | |||||||||
Others |
22.5 | 60.3 | 60.2 | |||||||||
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|
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70.6 | 309.3 | 147.2 | ||||||||||
|
|
|
|
|
|
|||||||
Operating profit pursuant to K-IFRS |
₩ | 1,387.2 | ₩ | 1,248.6 | ₩ | 1,038.7 | ||||||
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|
For the year ended December 31, |
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2021 (1) |
2020 (1) |
2019 (1) |
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(In billions of Won, except percentages) |
||||||||||||||||||||||||
From continuing operations: |
||||||||||||||||||||||||
Operating revenue and other income |
₩ | 16,864.3 | 100.0 | % | ₩ | 16,183.5 | 100.0 | % | ₩ | 15,512.0 | 100.0 | % | ||||||||||||
Revenue |
16,748.6 | 99.3 | 16,087.7 | 99.4 | 15,416.4 | 99.4 | ||||||||||||||||||
Other income |
115.8 | 0.7 | 95.8 | 0.6 | 95.6 | 0.6 | ||||||||||||||||||
Operating expenses |
15,432.0 | 91.5 | 15,148.5 | 93.6 | 14,525.0 | 93.6 | ||||||||||||||||||
Operating profit |
1,432.4 | 8.5 | 1,035.0 | 6.4 | 987.1 | 6.4 | ||||||||||||||||||
Profit before income tax |
1,718.2 | 10.2 | 905.2 | 5.6 | 807.0 | 5.2 | ||||||||||||||||||
Income tax expense |
446.8 | 2.6 | 221.3 | 1.4 | 262.9 | 1.7 | ||||||||||||||||||
Profit from continuing operations |
1,271.4 | 7.5 | 684.0 | 4.2 | 544.1 | 3.5 | ||||||||||||||||||
Profit from discontinued operations |
1,147.6 | 6.8 | 816.6 | 5.0 | 316.6 | 2.0 | ||||||||||||||||||
Profit for the year |
2,419.0 | 14.3 | 1,500.5 | 9.3 | 860.7 | 5.5 | ||||||||||||||||||
Attributable to: |
||||||||||||||||||||||||
Owners of the Parent Company |
2,407.5 | 14.3 | 1,504.4 | 9.3 | 888.7 | 5.7 | ||||||||||||||||||
Non-controlling interests |
11.5 | 0.1 | (3.8 | ) | (0.0 | ) | (28.0 | ) | (0.2 | ) |
(1) | Pursuant to the Spin-off, the Spin-off Businesses were transferred to SK Square, and such businesses have been accounted for as discontinued operations in our consolidated statement of income for the year ended December 31, 2021 included in this annual report. Similarly, our consolidated statements of income for the years ended December 31, 2019 and 2020 included in this annual report have been restated to present such businesses as discontinued operations. See “Certain Defined Terms and Conventions Used in this Annual Report.” |
For the year ended December 31, |
||||||||||||||||||||||||
2021 |
2020 |
2019 |
||||||||||||||||||||||
Amount |
Percentage of Total Revenue |
Amount |
Percentage of Total Revenue |
Amount |
Percentage of Total Revenue |
|||||||||||||||||||
(In billions of Won, except percentages) |
||||||||||||||||||||||||
Cellular Services Revenue |
||||||||||||||||||||||||
Wireless Service (1) |
₩ | 10,100.4 | 60.3 | % | ₩ | 9,806.7 | 61.0 | % | ₩ | 9,538.2 | 61.9 | % | ||||||||||||
Cellular Interconnection |
493.8 | 2.9 | 472.2 | 2.9 | 494.3 | 3.2 | ||||||||||||||||||
Wireless Device Sales |
959.9 | 5.7 | 983.4 | 6.1 | 1,151.2 | 7.5 | ||||||||||||||||||
Miscellaneous (2) |
1,164.4 | 7.0 | 1,085.7 | 6.7 | 1,040.1 | 6.7 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|||||||||||||
Total Cellular Services Revenue |
12,718.5 | 75.9 | 12,348.0 | 76.8 | 12,223.8 | 79.3 | ||||||||||||||||||
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Fixed-line Telecommunication Services Revenue |
||||||||||||||||||||||||
Fixed-line Telephone Service |
217.0 | 1.3 | 230.4 | 1.4 | 225.6 | 1.5 | ||||||||||||||||||
Fixed-line Interconnection |
69.8 | 0.4 | 83.8 | 0.5 | 92.4 | 0.6 | ||||||||||||||||||
Broadband Internet Service and Advanced Media Platform Service (3) |
2,443.9 | 14.6 | 2,210.7 | 13.7 | 1,822.4 | 11.8 | ||||||||||||||||||
International Calling Service |
162.4 | 1.0 | 160.3 | 1.0 | 137.9 | 0.9 | ||||||||||||||||||
Miscellaneous (4) |
784.6 | 4.7 | 747.0 | 4.6 | 681.0 | 4.4 | ||||||||||||||||||
Total Fixed-line Telecommunication Services Revenue |
3,677.7 | 22.0 | 3,432.2 | 21.3 | 2,959.3 | 19.2 | ||||||||||||||||||
Others Revenue |
||||||||||||||||||||||||
T-commerce (5) |
316.2 | 1.9 | 268.5 | 1.7 | 191.5 | 1.2 | ||||||||||||||||||
Portal Service (6) |
27.0 | 0.2 | 30.7 | 0.2 | 36.1 | 0.2 | ||||||||||||||||||
Miscellaneous |
9.2 | 0.1 | 8.3 | 0.1 | 5.7 | 0.0 | ||||||||||||||||||
Total Other Revenue |
352.4 | 2.1 | 307.6 | 1.9 | 233.3 | 1.5 | ||||||||||||||||||
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|
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|||||||||||||
Total Revenue |
16,748.6 | 100.0 | 16,087.7 | 100.0 | 15,416.4 | 100.0 | ||||||||||||||||||
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Segment Operating Expenses (7) |
||||||||||||||||||||||||
Cellular Services |
11,643.4 | 69.5 | 11,341.2 | 70.5 | 11,327.7 | 73.5 | ||||||||||||||||||
Fixed-line Telecommunication Services |
3,380.2 | 20.2 | 3,189.3 | 19.8 | 2,802.0 | 18.2 | ||||||||||||||||||
Others |
337.8 | 2.0 | 308.6 | 1.9 | 248.0 | 1.6 | ||||||||||||||||||
Total Segment Operating Expenses |
15,361.4 | 91.7 | 14,839.1 | 92.2 | 14,377.7 | 93.3 | ||||||||||||||||||
Segment Operating Profit (Loss) (8) |
||||||||||||||||||||||||
Cellular Services |
1,075.1 | 6.4 | 1,006.8 | 6.3 | 896.1 | 5.8 | ||||||||||||||||||
Fixed-line Telecommunication Services |
297.5 | 1.8 | 242.9 | 1.5 | 157.3 | 1.0 | ||||||||||||||||||
Others |
14.6 | 0.1 | (1.1 | ) | (0.0 | ) | (14.7 | ) | (0.1 | ) | ||||||||||||||
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|||||||||||||
Total Segment Operating Profit |
₩ | 1,387.2 | 8.3 | % | ₩ | 1,248.6 | 7.8 | % | ₩ | 1,038.7 | 6.7 | % | ||||||||||||
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(1) | Wireless service revenue includes revenue from wireless voice and data transmission services principally derived through monthly plan-based fees, usage charges for outgoing voice calls, usage charges for wireless data services and value-added service fees such as fees for our cloud services and T Universe subscription program paid by wireless subscribers. |
(2) | Miscellaneous cellular services revenue includes revenue from our IoT and other solutions as well as other miscellaneous cellular services. |
(3) | Broadband internet service and advanced media platform service revenue includes revenues from our broadband Internet services as well as IPTV and cable TV services. |
(4) | Miscellaneous fixed-line telecommunication services revenue includes revenues from business communications services (other than fixed-line telephone service) provided by SK Broadband. |
(5) | T-commerce services revenue includes revenues from SK Stoa. |
(6) | Portal service revenue includes revenues from Nate, our online portal service operated by SK Communications. |
(7) | “Segment operating expenses” mean operating expenses for each reportable segment presented in accordance with K-IFRS and therefore does not include certain expenses that are classified as other non-operating expenses under K-IFRS. For more information on the differences between our consolidated operating expenses pursuant to K-IFRS and pursuant to IFRS as issued by the IASB, see “— Explanatory Note Regarding Presentation of Certain Financial Information under K-IFRS.” |
(8) | Segment operating profit (loss) for each of the segments above is presented net of consolidation adjustments. Accordingly, they do not reconcile with the segment operating profit (loss) for each of such segments set forth in Note 4(1) of the notes to our consolidated financial statements, which is expressed prior to making such consolidation adjustments. |
• | Cellular services: The revenue of our cellular services segment, which is composed of revenues from wireless service, cellular interconnection, wireless device sales and miscellaneous cellular services, increased by 3.0% to Won 12,718.5 billion in 2021 from Won 12,348.0 billion in 2020. The increase in our cellular services revenue was due to increases in wireless service revenue, miscellaneous cellular services revenue and cellular interconnection revenue, partially offset by a decrease in wireless device sales revenue. |
• | Wireless service revenue increased by 3.0% to Won 10,100.4 billion in 2021 from Won 9,806.7 billion in 2020, primarily attributable to the continued increase in the number of subscribers who subscribe to our higher-priced 5G plans. COVID-19 pandemic on outbound international travel from Korea. |
• | Miscellaneous cellular services revenue increased by 7.2% to Won 1,164.4 billion in 2021 from Won 1,085.7 billion in 2020, primarily due to an increase in revenue from our IoT solutions, |
platform services and other new businesses as well as revenue from leasing our network to MVNO service providers. |
• | Cellular interconnection revenue increased by 4.6% to Won 493.8 billion in 2021 from Won 472.2 billion in 2020. The increase was primarily attributable to an increase in the volume of mobile to mobile calls, partially offset by a decrease in interconnection rates. |
• | Wireless device sales revenue decreased by 2.4% to Won 959.9 billion in 2021 from Won 983.4 billion in 2020, primarily due to a decrease in sales of handsets as a result of a limited supply of new flagship devices of the leading device manufacturers being available in 2021 as a whole. |
• | Fixed-line telecommunications services: The revenue of our fixed-line telecommunication services segment, which is composed of revenues from broadband Internet service and advanced media platform service (including IPTV and cable TV services), fixed-line telephone service, international calling service, fixed-line interconnection and miscellaneous fixed-line telecommunication services, increased by 7.2% to Won 3,677.7 billion in 2021 from Won 3,432.2 billion in 2020, primarily due to increases in our broadband Internet service and advanced media platform service revenue and miscellaneous fixed-line telecommunication services revenue, partially offset by decreases in fixed-line interconnection revenue and fixed-line telephone service revenue. |
• | Revenue from our broadband Internet service and advanced media platform service (including our IPTV and cable TV services) increased by 10.5% to Won 2,443.9 billion in 2021 from Won 2,210.7 billion in 2020, primarily due to increases in the number of IPTV subscribers to 6.1 million subscribers as of December 31, 2021 from 5.7 million subscribers as of December 31, 2020 and the number of subscribers who subscribe to our higher-priced plans. |
• | Miscellaneous fixed-line telecommunication services revenue increased by 5.0% to Won 784.6 billion in 2021 from Won 747.0 billion in 2020, primarily due to an increase in revenue from our business communications services. |
• | Fixed-line interconnection revenue decreased by 16.7% to Won 69.8 billion in 2021 from Won 83.8 billion in 2020, primarily due to a decrease in interconnection rates, as well as decreases in the number of fixed-line telephone subscribers and residential calling volume as described above. |
• | Fixed-line telephone service revenue decreased by 5.8% to Won 217.0 billion in 2021 from Won 230.4 billion in 2020, primarily due to decreases in the number of fixed-line telephone subscribers (including subscribers to VoIP services of SK Broadband, which in turn included such services formerly provided by SK Telink that were acquired by SK Broadband in April 2021) to 3.6 million as of December 31, 2021 from 3.8 million as of December 31, 2020 and residential calling volume as a result of a continued shift in consumer preference toward wireless communication. |
• | Others: The revenue of our others segment increased by 14.6% to Won 352.4 billion in 2021 from Won 307.6 billion in 2020, primarily due to a 17.8% increase in revenue of SK Stoa’s T-commerce business to Won 316.2 billion in 2021 from Won 268.5 billion in 2020, which mainly reflected an increase in the volume of merchandise sold. |
• | Cellular services: The segment operating expenses for our cellular services segment increased by 2.7% to Won 11,643.4 billion in 2021 from Won 11,341.2 billion in 2020, mainly attributable to the transfer of our treasury shares to certain of our officers and employees as bonus payments in 2021, the fair value of which was recognized as part of labor costs for this segment, and an increase in commissions, primarily reflecting an increase in the sale of our 5G wireless service subscriptions through our authorized dealers and independent retailers. |
• | Fixed-line telecommunication services: The segment operating expenses for our fixed-line telecommunication services segment increased by 6.0% to Won 3,380.2 billion in 2021 from Won 3,189.3 billion in 2020, primarily due to an increase in SK Broadband’s marketing expenses and commissions, primarily reflecting an increase in the sale of IPTV service subscriptions, and the transfer of SK Broadband’s treasury shares to certain of SK Broadband’s officers and employees as bonus payments in 2021. |
• | Others: The segment operating expenses for our others segment increased by 9.5% to Won 337.8 billion in 2021 from Won 308.6 billion in 2020, primarily due to an increase in the cost of goods sold of SK Stoa, which mainly reflected a corresponding increase in the revenue generated by SK Stoa’s T-commerce business. |
• | Cellular services: The segment operating profit of our cellular services segment increased by 6.8% to Won 1,075.1 billion in 2021 from Won 1,006.8 billion in 2020, due to the greater increase in segment operating revenue as compared to the increase in segment operating expenses, for the various reasons described above. |
• | Fixed-line telecommunication services: The segment operating profit of our fixed-line telecommunication services segment increased by 22.5% to Won 297.5 billion in 2021 from Won 242.9 billion in 2020, due to the greater increase in segment operating revenue as compared to the increase in segment operating expenses, for the reasons described above.fixed-line telecommunication services segment increased to 8.1% in 2021 from 7.1% in 2020. |
• | Others: Our others segment recorded operating profit of Won 14.6 billion in 2021 compared to operating loss of Won 1.1 billion in 2020, due to the greater increase in segment operating revenue as compared to the increase in segment operating expenses as described above. As a result, the segment operating margin of our others segment improved to 4.1% in 2021 from (0.4)% in 2020. |
• | Cellular services: The revenue of our cellular services segment, which is composed of revenues from wireless service, cellular interconnection, wireless device sales and miscellaneous cellular services, increased by 1.0% to Won 12,348.0 billion in 2020 from Won 12,223.8 billion in 2019. The increase in our cellular services revenue was due to increases in wireless service revenue and miscellaneous revenue, in significant part offset by decreases in wireless device sales revenue and cellular interconnection revenue. |
• | Wireless service revenue increased by 2.8% to Won 9,806.7 billion in 2020 from Won 9,538.2 billion in 2019, primarily attributable to an increase in the number of subscribers who subscribe to our higher-priced 5G plans. The impact of such increase was partially offset by an increase in the cumulative percentage of wireless service subscribers who elected to receive discounted rates in lieu of receiving handset subsidies pursuant to the MDDIA as well as a decrease in MVNO subscribers. |
• | Miscellaneous cellular services revenue increased by 4.4% to Won 1,085.7 billion in 2020 from Won 1,040.1 billion in 2019, primarily due to an increase in revenue from our IoT solutions business. |
• | Wireless device sales revenue decreased by 14.6% to Won 983.4 billion in 2020 from Won 1,151.2 billion in 2019, primarily due to a decrease in sales of handsets as a result of lower customer demand for new devices, which was partly attributable to the COVID-19 pandemic. |
• | Cellular interconnection revenue decreased by 4.5% to Won 472.2 billion in 2020 from Won 494.3 billion in 2019. The decrease was primarily attributable to continued decreases in interconnection rates and land-to-mobile |
• | Fixed-line telecommunications services: The revenue of our fixed-line telecommunication services segment, which is composed of revenues from broadband Internet service and advanced media platform service (including IPTV and cable TV services), fixed-line telephone service, international calling service, fixed-line interconnection and miscellaneous fixed-line telecommunication services, increased by 16.0% to Won 3,432.2 billion in 2020 from Won 2,959.3 billion in 2019, primarily due to increases in our broadband Internet service and advanced media platform service revenue and miscellaneous fixed-line telecommunication services revenue, in small part offset by a decrease in fixed-line interconnection revenue. |
• | Revenue from our broadband Internet service and advanced media platform service (including our IPTV and cable TV services) increased by 21.3% to Won 2,210.7 billion in 2020 from Won 1,822.4 billion in 2019, primarily due to the inclusion of revenue of the former Tbroad following the Tbroad Merger as well as an increase in the number of IPTV subscribers to 5.7 million subscribers as of December 31, 2020 from 5.2 million subscribers as of December 31, 2019. |
• | Miscellaneous fixed-line telecommunication services revenue increased by 9.7% to Won 747.0 billion in 2020 from Won 681.0 billion in 2019, primarily due to an increase in revenue from our business communications services. |
• | Fixed-line interconnection revenue decreased by 9.3% to Won 83.8 billion in 2020 from Won 92.4 billion in 2019, primarily due to a decrease in interconnection rates, as well as decreases in the number of fixed-line telephone subscribers and residential calling volume. |
• | Others: The revenue of our others segment increased by 31.8% to Won 307.6 billion in 2020 from Won 233.3 billion in 2019, primarily due to a 40.2% increase in SK Stoa’s T-commerce business to Won 268.5 billion in 2020 from Won 191.5 billion in 2019, which mainly reflected an increase in the volume of merchandise sold. |
• | Cellular services: The segment operating expenses for our cellular services segment slightly increased by 0.1% to Won 11,341.2 billion in 2020 from Won 11,327.7 billion in 2019, mainly attributable to an increase in marketing costs to promote our 5G services and increases in depreciation and amortization expenses of our equipment and frequency usage rights for our 5G network. |
• | Fixed-line telecommunication services: The segment operating expenses for our fixed-line telecommunication services segment increased by 13.8% to Won 3,189.3 billion in 2020 from Won 2,802.0 billion in 2019, primarily due to the inclusion of operating expenses of the former Tbroad following the Tbroad Merger. |
• | Others: The segment operating expenses for our others segment increased by 24.4% to Won 308.6 billion in 2020 from Won 248.0 billion in 2019, primarily due to an increase in the cost of sales of SK Stoa, which mainly reflected a corresponding increase in the revenue generated by SK Stoa’s T-commerce business. |
• | Cellular services: The segment operating profit of our cellular services segment increased by 12.4% to Won 1,006.8 billion in 2020 from Won 896.1 billion in 2019, due to the greater increase in segment operating revenue as compared to the increase in segment operating expenses, for the various reasons described above. |
• | Fixed-line telecommunication services: The segment operating profit of our fixed-line telecommunication services segment increased by 54.4% to Won 242.9 billion in 2020 from Won 157.3 billion in 2019, mainly due to the aggregate impact of the Tbroad Merger as described above.fixed-line telecommunication services segment increased to 7.1% in 2020 from 5.3% in 2019. |
• | Others: The segment operating loss of our others segment significantly decreased by 92.5% to Won 1.1 billion in 2020 from Won 14.7 billion in 2019, due to the greater increase in segment operating revenue |
as compared to the increase in segment operating expenses as described above. As a result, the segment operating margin of our others segment improved to (0.4)% in 2020 from (6.3)% in 2019. |
Item 5.B. |
Liquidity and Capital Resources |
Year ended December 31, |
Change |
|||||||||||||||||||||||||||
2021 |
2020 |
2019 |
2020 to 2021 |
2019 to 2020 |
||||||||||||||||||||||||
(In billions of Won, except percentages) |
||||||||||||||||||||||||||||
Net cash provided by operating activities |
₩ | 5,031.3 | ₩ | 5,821.9 | ₩ | 4,035.0 | ₩ | (790.6 | ) | (13.6 | )% | ₩ | 1,786.9 | 44.3 | % | |||||||||||||
Net cash used in investing activities |
(3,486.2 | ) | (4,250.4 | ) | (3,581.6 | ) | 764.2 | (18.0 | ) | (668.8 | ) | 18.7 | ||||||||||||||||
Net cash used in financing activities |
(2,053.6 | ) | (1,457.6 | ) | (686.7 | ) | (596.0 | ) | 40.9 | (770.9 | ) | 112.3 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
(508.5 | ) | 113.9 | (233.3 | ) | (622.4 | ) | N.A. | 347.2 | N.A. | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies |
11.6 | (15.1 | ) | (2.6 | ) | 26.7 | (176.8 | ) | (12.5 | ) | 480.8 | |||||||||||||||||
Cash and cash equivalents at beginning of period |
1,369.7 | 1,270.8 | 1,506.7 | 98.9 | 7.8 | (235.9 | ) | (15.7 | ) | |||||||||||||||||||
Cash and cash equivalents at end of period |
872.7 | 1,369.7 | 1,270.8 | (497.0 | ) | (36.3 | ) | 98.8 | 7.8 |
N.A. | = Not available |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
(In billions of Won) |
||||||||||||
Wireless Networks (1) |
₩ | 1,850.9 | ₩ | 1,878.6 | ₩ | 2,514.3 | ||||||
Fixed-line Network(2) |
822.8 | 818.3 | 815.8 | |||||||||
Others (3) |
242.2 | 860.9 | 45.8 | |||||||||
|
|
|
|
|
|
|||||||
Total |
₩ | 2,915.9 | ₩ | 3,557.8 | ₩ | 3,375.9 | ||||||
|
|
|
|
|
|
(1) | Includes investments in wireless networks, primarily our 5G, LTE and Wi-Fi networks, as well as other capital expenditures related to our networks. |
(2) | Includes all capital expenditures made by SK Broadband. |
(3) | Includes non-network related investments such as capital expenditures for product development, upgrades of our information technology systems and equipment and investments in data infrastructure, including certain investments made in connection with our discontinued operations. |
Spectrum |
Technology (width) |
Date of Acquisition (including renewals) |
Initial Payment Amount (in billions of Won) |
Initial Payment Year |
Annual Payment Amount (in billions of Won) |
Annual Payment Term |
||||||||||||||||
800 MHz |
LTE (20 MHz) | Jul. 2021 | ₩ | 56.8 | 2021 | ₩ | 34.1 | 2022-2026 |
||||||||||||||
1.8 GHz |
LTE (20 MHz + 15 MHz) | Dec. 2021 | 136.9 | 2021 | 82.2 | 2022-2026 | ||||||||||||||||
2.1 GHz |
LTE (30 MHz) | Dec. 2021 | 102.9 | 2021 | 61.8 | 2022-2026 | ||||||||||||||||
WCDMA (10 MHz) | ||||||||||||||||||||||
2.6 GHz |
LTE (40 MHz + 20 MHz) | Aug. 2016 | 332.5 | 2016 | 99.8 | 2017-2026 | ||||||||||||||||
3.5 GHz |
5G (100 MHz) | Dec. 2018 | 304.6 | 2018 | 91.4 | 2019-2028 | ||||||||||||||||
28 GHz |
5G (800 MHz) | Dec. 2018 | 51.8 | 2018 | 31.1 | 2019-2023 |
Year Ending December 31, |
Total |
|||
(In billions of Won) |
||||
2022 |
₩ | 1,444.1 | ||
2023 |
1,803.4 | |||
2024 |
1,432.5 | |||
2025 and thereafter |
4,175.5 |
Year Ending December 31, |
Total |
|||
(In billions of Won) |
||||
2022 |
₩ | 351.2 | ||
2023 |
318.2 | |||
2024 |
232.3 | |||
2025 and thereafter |
652.1 |
Payments Due by Period (1) |
||||||||||||||||||||
Total |
Less Than 1 Year |
1-3 Years |
4-5 Years |
More Than 5 Years |
||||||||||||||||
(In billions of Won) |
||||||||||||||||||||
Bonds |
||||||||||||||||||||
Principal |
₩ | 8,448.3 | ₩ | 1,390.0 | ₩ | 2,898.4 | ₩ | 1,615.7 | ₩ | 2,544.2 | ||||||||||
Interest |
1,031.8 | 213.8 | 286.0 | 187.9 | 344.1 | |||||||||||||||
Long-term borrowings |
||||||||||||||||||||
Principal |
394.2 | 41.1 | 337.5 | 15.6 | — | |||||||||||||||
Interest |
13.2 | 5.7 | 7.3 | 0.2 | — | |||||||||||||||
Lease liabilities |
||||||||||||||||||||
Principal |
1,553.6 | 351.2 | 550.5 | 374.2 | 277.9 | |||||||||||||||
Interest |
99.6 | 8.1 | 31.1 | 33.8 | 26.6 | |||||||||||||||
Short-term leases and leases of low-value assets |
29.2 | 29.2 | — | — | — | |||||||||||||||
Facility deposits |
5.8 | 1.2 | — | — | 4.6 | |||||||||||||||
Derivatives |
0.1 | 0.1 | 0.1 | — | — | |||||||||||||||
Other long-term payables(2) |
||||||||||||||||||||
Principal |
2,090.7 | 400.2 | 769.4 | 738.3 | 182.8 | |||||||||||||||
Interest |
30.4 | 7.4 | 14.5 | 7.2 | 1.3 | |||||||||||||||
Short-term borrowings |
13.0 | 13.0 | — | — | — | |||||||||||||||
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|
|||||||||||
Total contractual cash obligations |
₩ | 13,710.1 | ₩ | 2,461.0 | ₩ | 4,894.8 | ₩ | 2,972.9 | ₩ | 3,381.5 | ||||||||||
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(1) | We are contractually obligated to make severance payments to eligible employees we have employed for more than one year, upon termination of their employment, regardless of whether such termination is voluntary or involuntary. Accruals for severance indemnities are recorded based on the amount we would be required to pay in the event the employment of all our employees were to terminate at the balance date. However, we have not yet estimated cash flows for future periods. Accordingly, payments due in connection with severance indemnities have been excluded from this table. |
(2) | Related to acquisition of frequency licenses. See note 19 of the notes to our consolidated financial statements. |
Item 5.C. |
Research and Development, Patents and Licenses, etc. |
Organization |
Recent Areas of Focus | |
Media Tech | Development and standardization of new media technologies through content discovery, media processing, media streaming and deep learning | |
AI Transformation | Transformation of mobile network operation business based on AI technology; planning and development of products based on AI and big data | |
T3K Innovation | Development of vertical full-stack products and vision AI technologies; discovery of new growth opportunities based on technology and enhancement of technological and corporate value |
Item 5.D. |
Trend Information |
Item 5.E. |
Critical Accounting Estimates |
Item 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Item 6.A. |
Directors and Senior Management |
Name |
Month and Year of Birth |
Director Since |
Expiration of Term |
Position |
Other Positions |
Business Experience | ||||||||||||
Young Sang Ryu |
May 1970 | 2018 | 2024 | Executive Director, President and Chief Executive Officer | — | President of Mobile Network Operations Division, SK Telecom; Executive Vice President of Business Development Group, SK Inc.; Head of Corporate Center, SK Telecom | ||||||||||||
Jong Ryeol Kang |
Oct. 1964 | 2022 | 2025 | Head of ICT Infrastructure | — | Head of Corporate Culture Center, SK Telecom |
Name |
Month and Year of Birth |
Director Since |
Expiration of Term |
Position |
Other Positions |
Business Experience | ||||||||||||
Kyu Nam Choi |
Apr. 1964 | 2021 | 2024 | Non-executive Director |
Head of Global Business Development, SK SUPEX Council | Representative Director and President, Jeju Air | ||||||||||||
Jung Ho Ahn |
Feb. 1978 | 2017 | 2023 | Independent Non-executive Director |
Professor, Graduate School of Convergence Science and Technology, Seoul National University | Visiting Scholar, Google Inc.; Senior Research Scientist, Exascale Computing Lab, HP Labs | ||||||||||||
Youngmin Yoon |
Dec. 1963 | 2018 | 2024 | Independent Non-executive Director |
Dean of School of Media and Communications and Graduate School of Journalism and Mass Communication, Korea University | Professor, School of Media & Communication, Korea University; Vice-chair, Korean Academic Society for Public Relations; Advisor, Ministry of Land, Infrastructure and Transport Public Relations Division; Advisor, Korea Media Rating Board | ||||||||||||
Seok-Dong Kim |
May 1953 | 2019 | 2025 | Independent Non-executive Director |
Chairman, JIPYONG Institute of Humanities and Society | Chairman, Financial Services Commission; Vice Minister, Ministry of Finance and Economy; Vice Chairman, Financial Supervisory Commission |
Name |
Month and Year of Birth |
Director Since |
Expiration of Term |
Position |
Other Positions |
Business Experience | ||||||||||||
Yong-Hak Kim |
Jan. 1953 | 2020 | 2023 | Independent Non-executive Director |
Professor Emeritus, Yonsei University | President, Yonsei University; BK Planning Committee, Ministry of Education; Member, Presidential Advisory Council of Policy Planning; Professor of Sociology, Yonsei University | ||||||||||||
Junmo Kim |
Sept. 1976 | 2020 | 2023 | Independent Non-executive Director |
Associate Professor of Electrical Engineering, KAIST | Assistant Professor of Electrical Engineering, KAIST; Senior Researcher, Samsung Advanced Institute of Technology |
Name |
Month and Year of Birth |
Position |
Business Experience | |||
Jong Ryeol Kang | Oct. 1964 | Head of ICT Infrastructure | Head of Corporate Culture Division | |||
Chungsik Kang | Nov. 1971 | PR Officer, Public Relations Office | Project Leader, Communication Committee PR Team | |||
Yeong Sang Kwon | Mar. 1971 | Head of Corporate Relations Strategy | Team Leader, Corporate Relations Office | |||
Seong Joon Kim | Jul. 1970 | Head of Untact CP | Representative, Service Top | |||
Yeong Joon Kim | Sept. 1972 | Head of AI Technology, AI&CO | Voice Recognition Technology Cell Leader, AI Technology Unit | |||
Jeong Gyu Kim | Sept. 1976 | Officer of Malaysia Regional HQ | Project Leader, Global Business Development, SUPEX Council Project | |||
Jeong Tae Kim | Aug. 1972 | Head of Learning Center | Assessment Team Leader, Leadership Development Center | |||
Jung Hoon Kim | Nov. 1963 | Head of Cloud Infrastructure | Head of Platform Infrastructure Group | |||
Jiwon Kim | Jun. 1985 | Head of T3K Innovation Meta AI | Professional Researcher, Samsung Advanced Institute of Technology | |||
Jihoon Kim | Sept. 1978 | Officer of Future Business Team, SUPEX Council Project | Leader, Bundled Product Offering Team | |||
Jinwoo Kim | Feb. 1971 | Head of Global Business Office | Head of Global Business Office, SK Planet | |||
Jinwon Kim | Sept. 1966 | Head of Corporate Planning Group | Representative, SK USA | |||
Hyuk Kim | Sept. 1967 | Global Media Support, Media/Contents CO | Head of Media Business Support Group | |||
Heesup Kim | Oct. 1968 | Head of Communications | Head of Public Relations Office | |||
SukKwon Na | Nov. 1966 | PD of SK Research Institute for SUPEX Management | Director of Statistical Policy, Statistics Korea | |||
Jung Hwan Ryu | Jun. 1970 | Head of Infrastructure Strategy | Head of Infrastructure Support Group | |||
Gap In Moon | May 1969 | Head of Smart Device | Head of Service Strategy Division Policy Group | |||
Myung Soon Park | Feb. 1969 | Head of Infrastructure Value Innovation | Head of AI Business Unit |
Name |
Month and Year of Birth |
Position |
Business Experience | |||
Yong Joo Park | May 1965 | Head of ESG | Seoul Central District Prosecutor’s Office | |||
Jung Ho Park | May 1963 | Vice Chairman | Vice Chairman and CEO, SK Square and SK Hynix | |||
Jong Kwan Park | Jul. 1970 | Head of Infrastructure Technology | Head of 5GX Technology Group | |||
Ji Soo Park | Jun. 1976 | Officer of Talent Development CoE, SUPEX Council Project | Project Leader, HR Support Team, SUPEX Council Project | |||
Jin Woo So | Dec. 1961 | Chairman of Talent Development Committee, SUPEX Council Project | Representative, SK Planet | |||
Suk Ham Sung | Apr. 1970 | Head of Policy Cooperation Office | Evaluation Manager of Performance Evaluation Office, MSIT | |||
Jin Soo Seong | May 1968 | Head of Infrastructure Engineering | Head of Daegu Infrastructure Office | |||
Yongsik Shin | Aug. 1971 | Head of Connect Infrastructure CO | Head of Energy Business Team | |||
Sang Soo Sim | Aug. 1965 | Head of Western Infrastructure | Head of Infrastructure Business Group | |||
Jeong Yeol Ahn | Aug. 1969 | Head of Supply Chain Management | Head of Corporate Center, Eleven Street | |||
Junehyeon Ahn | Nov. 1969 | Officer of Public Relations Team, SUPEX Council Project | Corporate Relations Team, SUPEX Council Project Communication Committee | |||
Maeng Seog Yang | Mar. 1969 | Head of Metaverse Business, Metaverse CO | Head of 5GX MNO Business Group | |||
Ji Young Yeo | Sept. 1966 | ESG Alliance, ESG Promotion | Head of TTS Unit | |||
Sung Jin Yeum | Oct. 1972 | Officer of Corporate Culture Center | Head of CR Support | |||
Yong-Seop Yum | Oct. 1962 | Head of SK Research Institute for SUPEX Management | Head of Future Research Office | |||
Hui Gang Ye | Oct. 1970 | Head of Brand Strategy | Head of Brand 2 Office, Hyundai Card | |||
Kyung Sik Oh | Mar. 1966 | Head of Sports Marketing | Sports Communications Team Leader, Sports Marketing Group | |||
Sehyeon Oh | Jul. 1963 | Head of Digital Asset CO | Head of C&C DT Business Development Division | |||
Jaeho Yoo | Dec. 1973 | Head of Portfolio Management | Growth Business Group, Eleven Street | |||
Sung Eun Yoon | Jan. 1973 | Officer of PR, Public Relations Office | Head of Corporate Relations Strategy Office Policy System Team | |||
Yong Chul Yoon | May 1965 | Officer of Communication Team, SUPEX Council Project | Head of Department, MBC Newsroom | |||
Gab Jae Lee | Feb. 1973 | Head of Regional CP | Head of Central Marketing Office | |||
Gwan Woo Lee | Jun. 1973 | Head of Cloud Application Group | Head of Data Development Operations Group | |||
Gyu Sik Lee | Jan. 1970 | Head of ICT Support Office | Leader, Change 1 Cell, Change Office | |||
Kiyoon Lee | Dec. 1969 | Head of Change Management 2 | PL of Customer Value Innovation Office | |||
Sang Gu Lee | Jul. 1970 | Head of Messaging CO | Head of MNO Data Business Team | |||
Sang Heon Lee | Aug. 1965 | Head of Policy Development | Head of Corporate Relations Strategy Office | |||
Yong Seok Lee | Nov. 1961 | Head of ESG Group, SK Research Institute for SUPEX Management | PD, SK Research Institute for SUPEX Management | |||
Jeong Hoon Lee | May 1974 | SKTA Business Development | Investment Center 2 Group, SK Inc. | |||
Jongmin Lee | Jul. 1978 | Head of T3K Innovation | Head of Media Technology Institute | |||
Joon Ho Lee | Aug. 1968 | Head of ESG Promotion | Head of Public Relation Office 2 | |||
Joong Ho Lee | Nov. 1967 | Head of Metropolitan Area CP | Head of Busan Marketing Office |
Name |
Month and Year of Birth |
Position |
Business Experience | |||
HyunA Lee | Aug. 1971 | Head of AI&CO | Head of Conversational Commerce Division, SK Planet | |||
Bong Ho Lim | Dec. 1966 | Head of Mobile CO | Head of Metropolitan Area Marketing Office | |||
Jong Pil Lim | Nov. 1960 | ICT Advisory Group Officer | Head of Essencore | |||
Hyoung Do Lim | Jun. 1968 | Head of Change Management 1 | Head of Policy Cooperation Office | |||
Hong Sung Chang | Mar. 1969 | Head of Advertising/Data CO | Head of Data Technology Institute | |||
Dae Dug Jeong | Sept. 1967 | Head of Finance | Head of Tax Team | |||
Doh Hee Jung | Sept. 1974 | Head of AI Transformation Intelligence Service | Head of Data CoE Data Analysis Team 2 | |||
Chang Gweon Chung | Jul. 1970 | Head of Infrastructure Business | Head of Infrastructure Engineering Group | |||
Hui Yong Jeong | Mar. 1973 | Head of Business Development | Head of Strategic Planning Office, SK Inc. | |||
Dong Hwan Cho | Nov. 1970 | Head of Cloud Technology | Head of Data CoE | |||
Young Log Cho | Jun. 1971 | Head of CR Innovation | Assistant to Head of External Cooperation Office | |||
Zonggeun Chai | Jul. 1968 | Head of Ethics Management | Head of Compliance Team | |||
Nag Hun Choi | Nov. 1972 | Head of Smart Factory CO | Head of IoT Business Support Group | |||
Yong Jin Choi | Feb. 1977 | Head of AI Transformation | Head of MNO DT Labs, AI/DT Technology Group | |||
Woo Seong Chey | Jan. 1974 | Representative, SK Telecom Japan | PL of Unicorn Labs Tokyo Office | |||
Il Gyu Choi | Nov. 1970 | Head of Digital Infrastructure CO | Head of Public Business Unit | |||
Jeong Hwan Choi | Jun. 1968 | Strategic Investment, Business Development | Head of IR, Corporate Development Center | |||
Chang Won Chey | Aug. 1964 | Vice President of SK Research Institute for SUPEX Management | Chief Executive Officer, SK Chemical | |||
Myung Bok Ha | Mar. 1971 | Central Regional CP | Head of Service Ace | |||
Min Yong Ha | Sept. 1970 | Head of Corporate Development | Head of Global Alliance Group | |||
Seong Ho Ha | Sept. 1968 | Head of Corporate Relations | Head of Corporate Relations Strategy Office | |||
Myung Jin Han | Oct. 1973 | Head of Corporate Strategy | Head of Global Alliance Group | |||
Geunman Heo | Aug. 1966 | Head of Metropolitan Infrastructure | Head of Infrastructure Engineering Group | |||
Seung Tae Hong | Jul. 1971 | Head of Client Value Innovation | Portfolio Innovation Team Leader, Business Strategy Group | |||
Eric Hartman Davis | Oct. 1980 | Head of Apollo TF | Head of Global AI Development Group | |||
Hyuncheol Ku | Dec. 1971 | Head of Policy, Mobile CO | Head of Policy Cell | |||
Dae Sung Kim | Dec. 1971 | Head of Customer Planning, Business Planning | Head of MNO Support | |||
Ji Hyung Kim | Oct. 1971 | Head of Bundled Marketing Strategy | Head of Untact CP | |||
Sang Wook Shin | Jun. 1979 | Head of AI Service, AI&CO | Head of AI Service Unit | |||
Jae Woong Yoon | Nov. 1972 | Head of Subscription Marketing, Marketing CO | Head of Marketing 5GX Cluster | |||
Hyeongsig Yoon | Apr. 1968 | Head of Infrastructure Operation | Head of Infrastructure DT Team | |||
Dong Kee Lee | Jan. 1982 | Head of Cloud MEC Technology, Digital Infrastructure CO | Head of 5GX MEC Product |
Name |
Month and Year of Birth |
Position |
Business Experience | |||
Seoungyeoll Lee | Feb. 1970 | Head of PR1 | Head of Public Relations Planning, Public Relations Office | |||
Jeongyeon Lim | May 1976 | Head of Media Technology | Head of Media Processing Development Team | |||
Ikhwan Cho | Oct. 1977 | Head of Metaverse Development, Metaverse CO | Head of 5GX Service Development | |||
Hwasik Choi | Jul. 1971 | Head of Safety and Health | Head of Growth SCM | |||
Hwan Seok Choi | Aug. 1971 | Head of Business Strategy | Head of IPO Promotion | |||
Byong Jun Kim | Feb. 1970 | PD of SK Research Institute for SUPEX Management | Head of mySUNI Innovation Design College | |||
Jee Hyun Kim | Oct. 1972 | PD of SK Research Institute for SUPEX Management | Deep Change Research Officer, SK Research Institute for SUPEX Management | |||
Jungwhan Ahn | Jul. 1966 | Head of Corporate Culture | Head of HR Support Division, SK shieldus | |||
Man Seog Ryu | May 1966 | Director of SK Academy | Head of Corporate Culture, SK Hynix | |||
Joo Young Lee | May 1975 | PD of SK Research Institute for SUPEX Management | RF Researcher, Deep Change | |||
Hyuk Joon Chang | Jun. 1967 | Head of Business Planning | Head of Finance, SK Hynix | |||
Jae Hyun Chung | Dec. 1959 | Officer of ICT Advisory Group | Officer of Corporate Growth, SK Square | |||
Hui Young Jeong | Mar. 1973 | Head of Corporate Development | Head of Business Strategy Office, SK Inc. | |||
Jin Hur | Jan. 1971 | PD of SK Research Institute for SUPEX Management | Deep Change Research Officer, SK Research Institute for SUPEX Management | |||
Tae-won Chey |
Dec. 1960 | Chairman | Representative Director of SK Innovation and SK Hynix |
Item 6.B. |
Compensation |
Name |
Position |
Composition of Total Compensation |
Total Compensation |
|||||||||||||||||||
Salary |
Bonus |
Other Earned Income |
Severance |
|||||||||||||||||||
(in millions of Won) |
||||||||||||||||||||||
Jung Ho Park (1) |
Executive Director | ₩ | 1,625 | ₩ | 2,170 | ₩ | 32 | — | ₩ | 3,827 | ||||||||||||
Young Sang Ryu |
Executive Director | 792 | 730 | 31 | — | 1,553 |
(1) | On November 1, 2021, Jung Ho Park resigned from the board of directors following the Spin-off. His compensation amount set forth above includes only the amount with respect to his time as a member of our board of directors. |
Name |
Position |
Composition of Total Compensation |
Total Compensation |
|||||||||||||||||||
Salary |
Bonus |
Other Earned Income |
Severance |
|||||||||||||||||||
(in millions of Won) |
||||||||||||||||||||||
Jung Ho Park |
Executive Director | ₩ | 1,630 | ₩ | 2,170 | ₩ | 32 | ₩ | — | ₩ | 3,832 | |||||||||||
Jin Woo So |
Chairman of Talent Development Committee | 1,286 | 1,699 | 1 | — | 2,986 | ||||||||||||||||
Yoon Kim |
Head of T3K | 440 | 795 | 114 | 471 | 1,820 | ||||||||||||||||
Hyeong Chan Kim |
PD of SK Research Institute for SUPEX Management | 361 | 315 | 39 | 899 | 1,614 | ||||||||||||||||
Dae Hwan Ko |
Director of SK Academy | 369 | 303 | 4 | 895 | 1,571 |
Recipient |
Position |
Grant date |
Exercise period |
Exercise price (per share) |
Number of shares issuable |
|||||||||||
From |
To | |||||||||||||||
Jung Ho Park |
Former Executive Director, President and Chief Executive Officer |
March 24, 2017 | March 25, 2019 | March 24, 2022 | ₩ | 49,350 | 67,320 | |||||||||
March 25, 2020 | March 24, 2023 | 53,298 | 67,320 | |||||||||||||
March 25, 2021 | March 24, 2024 | 57,562 | 67,320 | |||||||||||||
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 337,408 | ||||||||||||
Young Sang Ryu |
Executive Director, President and Chief Executive Officer |
February 20, 2018 | February 21, 2020 | February 20, 2023 | 50,824 | 4,123 | ||||||||||
March 26, 2019 | March 27, 2021 | March 26, 2024 | 50,862 | 5,265 | ||||||||||||
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 7,145 | ||||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 18,190 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 295,275 | ||||||||||||
Seong Ho Ha |
Head of Corporate Relations Center |
February 22, 2019 | February 23, 2021 | February 22, 2024 | 53,052 | 4,157 | ||||||||||
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 5,028 | ||||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 5,830 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 9,341 | ||||||||||||
Hyoung Il Ha |
Head of Corporate Development |
February 22, 2019 | February 23, 2021 | February 22, 2024 | 53,052 | 4,749 | ||||||||||
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 5,955 | ||||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 11,418 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 10,737 | ||||||||||||
Poong Young Yoon |
Head of Corporate Center 1 |
February 22, 2019 | February 23, 2021 | February 22, 2024 | 53,052 | 3,777 | ||||||||||
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 5,293 | ||||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 10,203 | ||||||||||||
Jong Ryeol Kang |
Head of ICT Infrastructure Center |
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 6,219 | ||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 7,136 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 21,743 |
Recipient |
Position |
Grant date |
Exercise period |
Exercise price (per share) |
Number of shares issuable |
|||||||||||
From |
To | |||||||||||||||
Yoon Kim |
Head of T3K | March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 5,690 | ||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 6,407 | ||||||||||||
Seok Joon Huh |
Head of Private Placement Group |
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 5,624 | ||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 6,863 | ||||||||||||
Dong Hwan Cho |
Head of Cloud Transformation Center |
March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 4,631 | ||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 5,375 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 8,697 | ||||||||||||
HyunA Lee |
Head of AI&CO | March 26, 2020 | March 27, 2023 | March 26, 2027 | 38,452 | 4,631 | ||||||||||
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 8,746 | ||||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 12,884 | ||||||||||||
Sang Kyu Shin |
Head of Corporate Culture Center |
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 4,646 | ||||||||||
Jae Seung Song |
Head of Corporate Development Croup |
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 8,047 | ||||||||||
Myung Jin Han |
Head of Subscription Service CO |
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 4,403 | ||||||||||
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 11,274 | ||||||||||||
Byung Hoon Ryu |
Head of Corporate Strategy Group |
March 25, 2021 | March 26, 2023 | March 25, 2026 | 50,276 | 3,796 | ||||||||||
Bong Ho Lim |
Head of Mobile CO |
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 12,884 | ||||||||||
Jinwon Kim |
Head of Corporate Planning Group |
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 10,629 | ||||||||||
Yong Joo Park |
Head of ESG | March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 10,334 | ||||||||||
Heesup Kim |
Head of Communications |
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 7,086 | ||||||||||
Jungwhan Ahn |
Head of Corporate Culture |
March 25, 2022 | March 26, 2025 | March 25, 2029 | 56,860 | 8,858 |
Item 6.C. |
Board Practices |
• | examine the agenda for the general meeting of shareholders; |
• | examine financial statements and other reports to be submitted by the board of directors to the general meeting of shareholders; |
• | review the administration by the board of directors of our affairs; and |
• | examine the operations and asset status of us and our subsidiaries. |
Item 6.D. |
Employees |
Regular Employees |
Temporary Employees |
Total |
||||||||||
December 31, 2019 (1) |
34,548 | 5,995 | 40,543 | |||||||||
December 31, 2020 (1) |
34,847 | 6,250 | 41,097 | |||||||||
December 31, 2021 |
23,457 | 668 | 24,125 |
(1) | Includes employees of our former subsidiaries that were spun off pursuant to the Spin-off in November 2021. |
Item 6.E. |
Share Ownership |
Name |
Position |
Number of Shares Owned |
Percentage of Total Shares Outstanding |
Special Voting Rights |
Options |
|||||||||||||
Directors: |
||||||||||||||||||
Young Sang Ryu |
Executive Director, President and Chief Executive Officer | 7,340 | * | None | 329,998 | |||||||||||||
Jong Ryeol Kang |
Head of ICT Infrastructure | 3,484 | * | None | 35,098 | |||||||||||||
Executive Officers: |
||||||||||||||||||
Seong Joon Kim |
Head of Untact CP | 2,514 | * | None | — | |||||||||||||
Yeong Joon Kim |
Head of AI Technology Unit | 1,411 | * | None | — | |||||||||||||
Jung Hoon Kim |
Head of Cloud Infrastructure | 1,759 | * | None | — | |||||||||||||
Jiwon Kim |
Head of T3K Innovation Meta AI | 1,714 | * | None | — | |||||||||||||
Jinwoo Kim |
Head of Global Business Office | 1,759 | * | None | — | |||||||||||||
Jinwon Kim |
Head of Corporate Planning Group | 3,429 | * | None | 10,629 |
Name |
Position |
Number of Shares Owned |
Percentage of Total Shares Outstanding |
Special Voting Rights |
Options |
|||||||||||||
Hyuk Kim |
Global Media Support, Media/Contents CO | 1,714 | * | None | — | |||||||||||||
Heesup Kim |
Head of Communications | 2,411 | * | None | 7,086 | |||||||||||||
Jung Hwan Ryu |
Head of Infrastructure Strategy | 2,420 | * | None | — | |||||||||||||
Gap In Moon |
Head of Smart Device | 2,911 | * | None | — | |||||||||||||
Myung Soon Park |
Head of Infrastructure Value Innovation | 1,459 | * | None | — | |||||||||||||
Yong Joo Park |
Head of ESG | 5,527 | * | None | 10,334 | |||||||||||||
Jong Kwan Park |
Head of Infrastructure Technology | 1,911 | * | None | — | |||||||||||||
Suk Ham Sung |
Head of Policy Cooperation Office |
2,822 | * | None | — | |||||||||||||
Jin Soo Seong |
Head of Infrastructure Engineering | 5,449 | * | None | — | |||||||||||||
Yongsik Shin |
Head of Connect Infrastructure CO | 2,642 | * | None | — | |||||||||||||
Sang Soo Sim |
Head of Western Infrastructure | 2,714 | * | None | — | |||||||||||||
Jeong Yeol Ahn |
Head of Supply Chain Management | 2,182 | * | None | — | |||||||||||||
Maeng Seog Yang |
Head of Metaverse Business, Metaverse CO | 1,911 | * | None | — | |||||||||||||
Ji Young Yeo |
ESG Alliance, ESG Promotion |
1,763 | * | None | — | |||||||||||||
Sung Jin Yeum |
Officer of Corporate Culture Center |
4,340 | * | None | — | |||||||||||||
Hui Gang Ye |
Head of Brand Strategy | 2,411 | * | None | — | |||||||||||||
Kyung Sik Oh |
Head of Sports Marketing | 1,866 | * | None | — | |||||||||||||
Sehyeon Oh |
Head of Digital Asset CO | 1,107 | * | None | — | |||||||||||||
Sung Eun Yoon |
Officer of Communications, SUPEX Council Project | 1,911 | * | None | — | |||||||||||||
Gab Jae Lee |
Head of Regional CP | 2,214 | * | None | — | |||||||||||||
Kiyoon Lee |
Head of Change Management 2 | 3,126 | * | None | — | |||||||||||||
Sang Gu Lee |
Head of Messaging CO | 2,366 | * | None | — | |||||||||||||
Sang Heon Lee |
Head of Policy Development | 2,148 | * | None | — | |||||||||||||
Jongmin Lee |
Head of T3K Innovation | 1,911 | * | None | — | |||||||||||||
Joon Ho Lee |
Head of ESG Promotion |
2,014 | * | None | — | |||||||||||||
Joong Ho Lee |
Head of Metropolitan Area CP | 1,511 | * | None | — | |||||||||||||
HyunA Lee |
Head of AI&CO | 1,107 | * | None | 26,261 | |||||||||||||
Bong Ho Lim |
Head of Mobile CO | 1,759 | * | None | 8,858 | |||||||||||||
Hyoung Do Lim |
Head of Change Management 1 | 1,638 | * | None | — | |||||||||||||
Hong Sung Chang |
Head of Advertising/Data CO | 2,562 | * | None | — | |||||||||||||
Dae Dug Jeong |
Head of Finance | 1,866 | * | None | — | |||||||||||||
Doh Hee Jung |
Head of AI Transformation Intelligence Service | 1,607 | * | None | — | |||||||||||||
Chang Gweon Chung |
Head of Infrastructure Business | 2,370 | * | None | — | |||||||||||||
Dong Hwan Cho |
Head of Cloud Technology |
2,929 | * | None | 14,072 | |||||||||||||
Young Log Cho |
Head of CR Innovation | 4,429 | * | None | — | |||||||||||||
Zonggeun Chai |
Head of Ethics Management | 4,036 | * | None | — | |||||||||||||
Nag Hun Choi |
Head of Smart Factory CO | 2,625 | * | None | — | |||||||||||||
Il Gyu Choi |
Head of Digital Infrastructure CO | 1,509 | * | None | — | |||||||||||||
Jeong Hwan Choi |
Strategic Investment, Business Development | 2,018 | * | None | — | |||||||||||||
Min Yong Ha |
Head of Corporate Development | 2,714 | * | None | — | |||||||||||||
Seong Ho Ha |
Head of Corporate Relations | 5,340 | * | None | 19,328 | |||||||||||||
Hyoung Il Ha |
Head of Corporate Development | 7,340 | * | None | 26,904 | |||||||||||||
Geunman Heo |
Head of Metropolitan Infrastructure | 2,514 | * | None | — | |||||||||||||
Myung Jin Han |
Head of Corporate Strategy | 5,340 | * | None | 15,677 | |||||||||||||
Seung Tae Hong |
Head of Client Value Innovation | 1,759 | * | None | — | |||||||||||||
Gyu Sik Lee |
Head of ICT Support Office | 2,411 | * | None | — | |||||||||||||
Gwan Woo Lee |
Head of Cloud Application Group | 2,062 | * | None | — | |||||||||||||
Yeong Sang Kwon |
Head of Corporate Relations Strategy | 2,062 | * | None | — | |||||||||||||
Yong Jin Choi |
Head of Apollo TF | 1,411 | * | None | — |
Name |
Position |
Number of Shares Owned |
Percentage of Total Shares Outstanding |
Special Voting Rights |
Options |
|||||||||||||
Yong Chul Yoon |
Officer of Communication Team, SUPEX Council Project | 303 | * | None | — | |||||||||||||
Eric Hartman Davis |
Head of Apollo TF | 803 | * | None | — | |||||||||||||
Woo Seong Chey |
Representative, SK Telecom Japan | 303 | * | None | — | |||||||||||||
Jihoon Kim |
Officer of Future Business Team, SUPEX Council Project | 203 | * | None | — | |||||||||||||
Jungwhan Ahn |
Head of Corporate Culture | — | * | None | 8,858 | |||||||||||||
Jaeho Yoo |
Head of Portfolio Mgmt | 2,168 | * | None | — | |||||||||||||
Hyuncheol Ku |
Head of Policy, Mobile CO | 1,107 | * | None | — | |||||||||||||
Dae Sung Kim |
Head of Customer Planning, Business Planning | 1,107 | * | None | — | |||||||||||||
Ji Hyung Kim |
Head of Bundled Marketing Strategy | 955 | * | None | — | |||||||||||||
Sang Wook Shin |
Head of AI Service, AI&CO | 1,607 | * | None | — | |||||||||||||
Jae Woong Yoon |
Head of Subscription Marketing, Marketing CO | 1,107 | * | None | — | |||||||||||||
Hyeongsig Yoon |
Head of Infrastructure Operation | 1,501 | * | None | — | |||||||||||||
Dong Kee Lee |
Head of Cloud MEC Technology, Digital Infrastructure CO | 1,107 | * | None | — | |||||||||||||
Seoungyeoll Lee |
Head of PR1 | 803 | * | None | — | |||||||||||||
Jeongyeon Lim |
Head of Media Technology | 825 | * | None | — | |||||||||||||
Hyuk Joon Chang |
Head of Business Planning | 500 | * | None | — | |||||||||||||
Jae Hyun Chung |
Officer of ICT Advisory Group | 303 | * | None | — | |||||||||||||
Ikhwan Cho |
Head of Metaverse Development, Metaverse CO | 1,046 | * | None | — | |||||||||||||
Hwasik Choi |
Head of Safety and Health | 1,107 | * | None | — | |||||||||||||
Hwan Seok Choi |
Head of Business Strategy | 1,000 | * | None | — | |||||||||||||
Jin Hur |
PD of SK Research Institute for SUPEX Management | 197 | * | None | — | |||||||||||||
Tae-won Chey |
Chairman | 303 | * | None | — | |||||||||||||
Jung Ho Park |
Vice-chairman | 21,530 | * | None | 539,368 | |||||||||||||
|
|
|
|
|
|
|||||||||||||
Total |
191,464 | * | 1,052,471 |
* | Less than 1%. |
Item 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Item 7.A. |
Major Shareholders |
Shareholder |
Number of Shares |
Percentage of Total Shares Issued (1) |
Percentage of Total Shares Outstanding (2) |
|||||||||
SK Inc. |
65,668,397 | 30.0 | % | 30.2 | % | |||||||
National Pension Service |
21,076,493 | 9.6 | 9.7 |
(1) | Calculated based on 218,833,144 total issued shares, which include 1,250,992 treasury shares, as of December 31, 2021. |
(2) | Calculated based on 217,582,152 total outstanding shares as of December 31, 2021. |
As of December 31, |
||||||||||||
Shareholder |
2021 |
2020 |
2019 |
|||||||||
(As a percentage of total issued shares) (1) |
||||||||||||
SK Group (2) |
30.0 | % | 26.8 | % | 26.8 | % | ||||||
SK Inc. |
30.0 | 26.8 | 26.8 | |||||||||
National Pension Service |
9.6 | 11.0 | 11.1 |
(1) | Includes 1,250,992 shares, 9,418,558 shares and 7,609,263 shares held in treasury as of December 31, 2021, 2020 and 2019, respectively. In November 2019, we sold 1,266,620 treasury shares to Kakao for approximately Won 300.0 billion. In 2020, we repurchased 1,809,295 common shares under the Share Repurchase Agreement. In 2021, we repurchased 288,000 common shares under the Share Repurchase Agreement and transferred 626,740 treasury shares as bonus payments to certain of our officers and employees, in each case prior to the effectiveness of the Stock Split. The Share Repurchase Agreement was terminated on April 30, 2021. |
(2) | SK Group’s ownership interest as of December 31, 2021, 2020 and 2019 consisted of the ownership interest of SK Inc. only. |
Item 7.B. |
Related Party Transactions |
Item 7.C. |
Interests of Experts and Counsel |
Item 8. |
FINANCIAL INFORMATION |
Item 8.A. |
Consolidated Statements and Other Financial Information |
Year Ended December 31, |
Dividend per Share |
Total Amount of Dividends |
Number of Shares Entitled to Dividend |
|||||||||
(In Won) |
(In billions of Won) |
|||||||||||
2019 |
₩ | 10,000 | ₩ | 730.1 | 73,136,448 | (1) | ||||||
2020 |
10,000 | 715.1 | 71,327,153 | (2) |
(1) | The number of shares entitled to the interim dividend was 71,869,828. |
(2) | The number of shares entitled to the interim dividend was 73,136,448. |
Dividend Type |
Dividend per Share |
Total Amount of Dividends |
Number of Shares Entitled to Dividend |
|||||||||
(In Won) |
(In billions of Won) |
|||||||||||
Interim dividend (for the period ended June 30, 2021) |
₩ | 2,500 | ₩ | 177.9 | 71,160,643 | |||||||
Interim dividend (for the period ended September 30, 2021) |
2,500 | 177.9 | 71,160,643 | |||||||||
Annual dividend (for the year ended December 31, 2021) |
1,660 | 361.2 | 217,582,152 | (1) |
(1) | Reflects the Stock Split, which became effective as of October 28, 2021. |
Item 8.B. |
Significant Changes |
Item 9. |
THE OFFER AND LISTING |
Item 9.A. |
Offering and Listing Details |
Item 9.B. |
Plan of Distribution |
Item 9.C. |
Markets |
Item 9.D. |
Selling Shareholders |
Item 9.E. |
Dilution |
Item 9.F. |
Expenses of the Issue |
Item 10. |
ADDITIONAL INFORMATION |
Item 10.A. |
Share Capital |
Item 10.B. |
Memorandum and Articles of Association |
• | information and communication business; |
• | sale and lease of subscriber handsets; |
• | new media business; |
• | advertising business; |
• | mail order sales business; |
• | real estate business (development, management and leasing, etc.) and chattel leasing business; |
• | research and technology development relating to the first four items above; |
• | overseas and import/export business relating to the first four items above; |
• | manufacture and distribution business relating to the first four items above; |
• | travel business; |
• | electronic financial services business; |
• | film business (production, import, distribution and screening); |
• | lifetime education and management of lifetime educational facilities; |
• | electric engineering business; |
• | information- and communication-related engineering business; |
• | ubiquitous city construction and related service business; |
• | any related business through investment, management and operation of our Korean or offshore subsidiaries and investment companies; |
• | construction business, including the machine and equipment business; |
• | export/import business and export/import intermediation/agency business; |
• | electrical business such as intelligent electrical grid business; and |
• | any business or undertaking incidental or conducive to the attainment of the objectives stated above. |
• | investment by us or any of our subsidiaries in a foreign company in equity or acquisition of such foreign company’s other overseas assets in an amount equal to 5.0% or more of our equity under our most recent balance sheet; and |
• | contribution of capital, loans or guarantees, acquisition of our subsidiaries’ assets or similar transactions with our affiliated companies in excess of Won 10.0 billion through one or a series of transactions. |
• | as necessary; |
• | at the request of holders of an aggregate of 3.0% or more of our outstanding common shares; |
• | at the request of shareholders holding an aggregate of 1.5% or more of our outstanding shares and preferred shares for at least six months; or |
• | at the request of our audit committee. |
• | amending our articles of incorporation; |
• | removing a director; |
• | effecting any dissolution, merger or consolidation of us; |
• | transferring the whole or any significant part of our business; |
• | effecting our acquisition of all of the business of any other company or a part of the business of any other company having a material effect on our business; |
• | reducing our capital; or |
• | issuing any new shares at a price lower than their par value. |
Item 10.C. |
Material Contracts |
Item 10.D. |
Exchange Controls |
• | if the Government deems it necessary on account of war, armed conflict, natural disaster or grave and sudden and significant changes in domestic or foreign economic circumstances or similar events or circumstances, the MOEF may temporarily suspend performance under any or all foreign exchange transactions, in whole or in part, to which the Foreign Exchange Transaction Laws apply (including suspension of payment and receipt of foreign exchange), impose an obligation to deposit, safe-keep or sell any means of payment to The Bank of Korea, a foreign exchange stabilization fund, certain other governmental agencies or financial companies or impose an obligation on a resident that holds a claim against a non-resident to collect such claim to enable the recovery of the relevant debt back to Korea; and |
• | if the Government concludes that the international balance of payments and international financial markets are experiencing or are likely to experience significant disruption or that the movement of capital between Korea and other countries are likely to adversely affect the Won, exchange rate or other macroeconomic policies, the MOEF may take action to require any person who intends to effect or effects a capital transaction to deposit all or a portion of the means of payment acquired in such transactions with The Bank of Korea, a foreign exchange stabilization fund, certain other governmental agencies or financial companies. |
• | Under current Korean laws and regulations, the depositary is required to obtain our prior consent for any proposed deposit of common shares if the number of shares to be deposited in such proposed deposit exceeds the number of common shares initially deposited by us for the issuance of ADSs (including deposits in connection with the initial and all subsequent issuances of ADSs by us or with our consent and stock dividends or other distributions related to the ADSs). |
• | In addition to such restrictions under Korean laws and regulations, there are also restrictions on the deposits of our common shares for issuance of ADSs. Therefore, a holder of ADRs who surrenders ADRs and withdraws shares may not be permitted subsequently to deposit those shares and obtain ADRs. |
• | odd-lot trading of shares; |
• | acquisition of shares by a foreign company as a result of a merger; |
• | acquisition or disposal of shares in connection with a tender offer; |
• | acquisition of shares by exercise of warrant, conversion right under convertible bonds, exchange right under exchangeable bonds or withdrawal right under depositary receipts issued outside of Korea by a Korean company (“converted shares”); |
• | acquisition of shares through exercise of rights under securities issued outside of Korea; |
• | acquisition of shares as a result of inheritance, donation, bequest or exercise of shareholders’ rights, including preemptive rights or rights to participate in free distributions and receive dividends; |
• | over-the-counter |
• | acquisition of shares by direct investment under the Foreign Investment Promotion Law; |
• | acquisition and disposal of shares on an overseas stock exchange market, if such shares are simultaneously listed on the KRX KOSPI Market or KRX KOSDAQ Market and such overseas stock exchange; |
• | arm’s length transactions between foreigners in the event all such foreigners belong to an investment group managed by the same person; and |
• | acquisition and disposal of shares through alternative trading systems. |
Item 10.E. |
Taxation |
• | a dealer in securities or currencies; |
• | a trader in securities that elects to use a mark-to-market |
• | a bank or other financial institution; |
• | a life insurance company; |
• | a tax-exempt organization; |
• | a person that holds common shares or ADSs that are a hedge or that are hedged against interest rate or currency risks; |
• | a person that holds common shares or ADSs as part of a straddle or conversion transaction for tax purposes; |
• | a person whose functional currency for tax purposes is not the U.S. dollar; |
• | a person that owns or is deemed to own 10.0% or more of any class of our stock (by vote or value); or |
• | an entity or arrangement that is treated as a partnership for U.S. federal income tax purposes (or partners therein). |
• | a citizen or resident of the United States; |
• | a U.S. domestic corporation; or |
• | otherwise subject to U.S. federal income tax on a net income basis with respect to income from the common share or ADS. |
Item 10.F. |
Dividends and Paying Agents |
Item 10.G. |
Statements by Experts |
Item 10.H. |
Documents on Display |
Item 10.I. |
Subsidiary Information |
Item 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Maturities |
||||||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total |
Fair Value |
|||||||||||||||||||||||||
(In billions of Won, except for percentage data) |
||||||||||||||||||||||||||||||||
Local currency: |
||||||||||||||||||||||||||||||||
Fixed-rate |
₩ | 1,402.3 | ₩ | 829.0 | ₩ | 1,417.6 | ₩ | 848.0 | ₩ | 458.9 | ₩ | 2,063.9 | ₩ | 7,019.7 | ₩ | 7,008.5 | ||||||||||||||||
Average weighted rate (1) |
2.21 | % | 2.96 | % | 2.03 | % | 1.92 | % | 1.86 | % | 2.38 | % | ||||||||||||||||||||
Variable rate |
12.5 | 25.0 | — | — | — | — | 37.5 | 37.5 | ||||||||||||||||||||||||
Average weighted rate (1) |
2.78 | % | 2.67 | % | — | — | — | — | ||||||||||||||||||||||||
Sub-total |
1,414.8 | 854.0 | 1,417.6 | 848.0 | 458.9 | 2,063.9 | 7,057.2 | 7,046.0 | ||||||||||||||||||||||||
Foreign currency: |
||||||||||||||||||||||||||||||||
Fixed-rate |
6.7 | 945.2 | — | — | — | 470.6 | 1,422.5 | 1,671.5 | ||||||||||||||||||||||||
Average weighted rate (1) |
1.70 | % | 3.88 | % | — | — | — | 6.63 | % | |||||||||||||||||||||||
Variable rate |
— | — | — | 354.2 | — | — | 354.2 | 354.2 | ||||||||||||||||||||||||
Average weighted rate (1) |
— | — | — | 1.12 | % | — | — | |||||||||||||||||||||||||
Sub-total |
6.7 | 945.2 | — | 354.2 | — | 470.6 | 1,776.7 | 2,025.7 | ||||||||||||||||||||||||
Total |
₩ | 1,421.5 | ₩ | 1,799.2 | ₩ | 1,417.6 | ₩ | 1,202.2 | ₩ | 458.9 | ₩ | 2,534.5 | ₩ | 8,833.9 | ₩ | 9,071.7 | ||||||||||||||||
(1) | Weighted average rates of the portfolio at the period end. |
Item 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Item 12.A. |
Debt Securities |
Item 12.B. |
Warrants and Rights |
Item 12.C. |
Other Securities |
Item 12.D. |
American Depositary Shares |
Item 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
Item 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
Item 15. |
CONTROLS AND PROCEDURES |
Item 16. |
RESERVED |
Item 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
Item 16B. |
CODE OF ETHICS |
Item 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(In millions of Won) |
||||||||
Audit Fees |
₩ | 5,969 | ₩ | 5,157 | ||||
Audit-Related Fees |
62 | 16 | ||||||
Tax Fees |
262 | 372 | ||||||
All Other Fees |
— | 93 | ||||||
Total |
₩ | 6,293 | ₩ | 5,638 |
Item 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
Item 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Period |
Total Number of Shares Purchased |
Average Price Paid per Share (1) |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Approximate Value of Shares that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
(In billions of Won) |
||||||||||||||||
January 1, 2021 – April 30, 2021 (2)(3) |
1,440,000 | ₩ | 47,647 | 1,440,000 | ₩ | — | ||||||||||
November 29, 2021 (4) |
54,032 | 57,900 | 54,032 | — | ||||||||||||
Total |
1,494,032 | ₩ | 48,018 | 1,494,032 | ₩ | — | ||||||||||
(1) | Average price paid per share is a weighted average calculation using the aggregate price, excluding commissions and fees. |
(2) | Repurchases made in the open market pursuant to a share repurchase agreement with SK Securities Co., Ltd., a securities brokerage firm, dated August 28, 2020 (the “Share Repurchase Agreement”), which was terminated on April 30, 2021. |
(3) | Reflects the Stock Split, which became effective as of October 28, 2021. |
(4) | Represents the fractional shares arising from the Spin-off. |
Item 16F. |
CHANGE IN REGISTRANT ’ S CERTIFYING ACCOUNTANT |
Item 16G. |
CORPORATE GOVERNANCE |
NYSE Corporate Governance Standards |
Our Corporate Governance Practice | |
Director Independence |
||
Listed companies must have a majority of independent directors. | Of the eight members of our board of directors, five are independent directors. | |
Executive Session |
||
Non-management directors must meet in regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. |
Our audit committee, which is comprised solely of four independent directors, holds meetings whenever there are matters related to management directors, and such meetings are generally held once every month. | |
Nomination/Corporate Governance Committee |
||
Listed companies must have a nomination/corporate governance committee composed entirely of independent directors. The committee must have a charter that addresses the purpose, responsibilities (including development of corporate governance guidelines) and annual performance evaluation of the committee. | Although we do not have a separate nomination/corporate governance committee, we maintain an independent director nomination committee composed of two independent directors and one management director. | |
Compensation Committee |
||
Listed companies must have a compensation committee composed entirely of independent directors. The committee must have a charter that addresses the purpose, responsibilities and annual performance evaluation of the committee. The charter must be made available on the company’s website. In addition, in accordance with the SEC rules adopted pursuant to Section 952 of the Dodd-Frank Act, the NYSE listing standards were amended to expand the factors relevant in determining whether a committee member has a relationship with the company. | We maintain a compensation review committee comprised of one non-independent director and three independent directors. |
NYSE Corporate Governance Standards |
Our Corporate Governance Practice | |
Audit Committee |
||
Listed companies must have an audit committee that satisfies the independence and other requirements of Rule 10A-3 under the Exchange Act. All members must be independent. The committee must have a charter addressing the committee’s purpose, an annual performance evaluation of the committee, and the duties and responsibilities of the committee. The charter must be made available on the company’s website. |
We maintain an audit committee comprised solely of four independent directors. | |
Audit Committee Additional Requirements |
||
Listed companies must have an audit committee that is composed of at least three directors. | Our audit committee has four independent directors. | |
Shareholder Approval of Equity Compensation Plan |
||
Listed companies must allow its shareholders to exercise their voting rights with respect to any material revision to the company’s equity compensation plan. | We currently have two equity compensation plans: a stock option plan for officers and directors and employee stock ownership plan for employees (“ESOP”). We manage such compensation plans in compliance with the applicable laws and our articles of incorporation, provided that, under certain limited circumstances, the grant of stock options or matters relating to ESOP are not subject to shareholders’ approval under Korean law. | |
Shareholder Approval of Equity Offerings |
||
Listed companies must allow its shareholders to exercise their voting rights with respect to equity offerings that do not qualify as public offerings for cash, and offerings of equity of related parties. | Pursuant to the Korean Commercial Code and the FSCMA, our shareholders are generally entitled to preemptive rights with respect to the issuance of new shares. Exceptions include public offerings as prescribed in the FSCMA and allotments to third parties in cases necessary for the achievement of a business purpose, such as the introduction of new technology and the improvement of our financial condition. | |
Corporate Governance Guidelines |
||
Listed companies must adopt and disclose corporate governance guidelines. | We have adopted a Corporate Governance Charter, which is available (in Korean) on our website at www.sktelecom.com. We are also in compliance with the Korean Commercial Code in connection with such matters, including the governance of the board of directors. | |
Code of Business Conduct and Ethics |
||
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees and promptly disclose any waivers of the code for directors or executive officers. | We have adopted a Code of Business Conduct and Ethics for all of our directors, officers and employees, and such code is also available on our website at www.sktelecom.com . |
Item 16H. |
MINE SAFETY DISCLOSURE |
Item 16I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
Item 17. |
FINANCIAL STATEMENTS |
Item 18. |
FINANCIAL STATEMENTS |
F-1 |
||||
F-2 |
||||
F-4 |
||||
F-6 |
||||
F-8 |
||||
F-9 |
||||
F-10 |
||||
F-13 |
||||
F-15 |
||||
Financial Statements of SK Hynix |
||||
G-1 |
||||
G- 3 |
||||
G- 5 |
||||
G- 6 |
||||
G- 8 |
||||
G- 9 |
Item 19. |
EXHIBITS |
SK TELECOM CO., LTD. | ||
(Registrant) | ||
/s/ Hee Jun Chung | ||
Name: | Hee Jun Chung | |
Title: | Vice President, Head of IR |
Page |
||||
F-2 | ||||
F-4 | ||||
F-6 | ||||
F-8 | ||||
F-9 | ||||
F-10 | ||||
F-13 | ||||
F-15 | ||||
Financial Statements of SK Hynix |
||||
G-1 | ||||
G-5 | ||||
G-6 | ||||
G-8 | ||||
G-9 |
• | We evaluated the design and tested the operating effectiveness of certain internal controls related to the Group’s goodwill impairment analysis. This included controls related to the development of operating revenue, perpetual growth rate and discount rate assumptions. |
• | We performed sensitivity analyses over both the discount rate and the perpetual growth rate used in the discounted cash flow forecast to assess the impact of changes in these assumptions on the Group’s determination of the VIU of the fixed-line telecommunication services CGU. |
• | We evaluated estimated operating revenue by comparison with the financial budgets approved by the Group and comparing the forecasted operating cash flow in prior year with the actual results to assess the Group’s ability to accurately forecast. |
• | We involved our valuation professionals with specialized skills and knowledge, who assisted in (1) evaluating estimated operating revenue and perpetual growth rate by comparing them with telecommunication industry reports as well as the Group’s historical performance and (2) evaluating the discount rate by comparing it with a discount rate that was independently developed using publicly available market data for comparable entities. |
(In millions of won) |
Note |
December 31, 2021 |
December 31, 2020 |
|||||||||
Assets |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
34,35 |
₩ |
||||||||||
Short-term financial instruments |
5,34,35 |
|||||||||||
Short-term investment securities |
10,34,35 |
|||||||||||
Accounts receivable — trade, net |
6,34,35,36 |
|||||||||||
Short-term loans, net |
6,34,35,36 |
|||||||||||
Accounts receivable — other, net |
6,34,35,36,37 |
|||||||||||
Contract assets |
8,35 |
|||||||||||
Prepaid expenses |
7 |
|||||||||||
Prepaid income taxes |
31 |
|||||||||||
Derivative financial assets |
22,34,35,38 |
|||||||||||
Inventories, net |
9 |
|||||||||||
Non-current assets held for sale |
40 |
|||||||||||
Advanced payments and others |
6,34,35 |
|||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Non-Current Assets: |
||||||||||||
Long-term financial instruments |
5,34,35 |
|||||||||||
Long-term investment securities |
10,34,35 |
|||||||||||
Investments in associates and joint ventures |
12 |
|||||||||||
Investment property, net |
14 |
|||||||||||
Property and equipment, net |
13,15,36,37 |
|||||||||||
Goodwill |
11,16 |
|||||||||||
Intangible assets, net |
17 |
|||||||||||
Long-term contract assets |
8,35 |
|||||||||||
Long-term loans, net |
6,34,35,36 |
|||||||||||
Long-term accounts receivable — other |
6,34,35,36,37 |
|||||||||||
Long-term prepaid expenses |
7 |
|||||||||||
Guarantee deposits |
6,34,35,36 |
|||||||||||
Long-term derivative financial assets |
22,34,35,38 |
|||||||||||
Deferred tax assets |
31 |
|||||||||||
Defined benefit assets |
21 |
|||||||||||
Other non-current assets |
6,34,35 |
|||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Total Assets |
₩ |
|||||||||||
|
|
|
|
(In millions of won) |
Note |
December 31, 2021 |
December 31, 2020 |
|||||||||
Liabilities and Shareholders’ Equity |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable — trade |
34,35,36 |
₩ |
||||||||||
Accounts payable — other |
34,35,36 |
|||||||||||
Withholdings |
34,35,36 |
|||||||||||
Contract liabilities |
8 |
|||||||||||
Accrued expenses |
34,35 |
|||||||||||
Income tax payable |
3 1 |
|||||||||||
Derivative financial liabilities |
22,34,35,38 |
|||||||||||
Provisions |
20,39 |
|||||||||||
Short-term borrowings |
18,34,35,38 |
|||||||||||
Current portion of long-term debt, net |
18,34,35,38 |
|||||||||||
Current portion of long-term payables — other |
19,34,35,38 |
|||||||||||
Lease liabilities |
34,35,36,38 |
|||||||||||
Other current liabilities |
||||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Non-Current Liabilities: |
||||||||||||
Debentures, excluding current portion, net |
18,34,35,38 |
|||||||||||
Long-term borrowings, excluding current portion, net |
18,34,35,38 |
|||||||||||
Long-term payables — other |
19,34,35,38 |
|||||||||||
Long-term lease liabilities |
34,35,36,38 |
|||||||||||
Long-term contract liabilities |
8 |
|||||||||||
Defined benefit liabilities |
21 |
|||||||||||
Long-term derivative financial liabilities |
22,34,35,38 |
|||||||||||
Long-term provisions |
20 |
|||||||||||
Deferred tax liabilities |
31 |
|||||||||||
Other non-current liabilities |
34,35,36 |
|||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Total Liabilities |
||||||||||||
|
|
|
|
|||||||||
Shareholders’ Equity: |
||||||||||||
Share capital |
1,23 |
|||||||||||
Capital surplus and others |
11,23,24,26 |
( |
) | |||||||||
Hybrid bonds |
25 |
|||||||||||
Retained earnings |
27 |
|||||||||||
Reserves |
28 |
|||||||||||
Equity attributable to owners of the Parent Company |
||||||||||||
Non-controlling interests |
||||||||||||
|
|
|
|
|||||||||
Total Shareholders’ Equity |
||||||||||||
|
|
|
|
|||||||||
Total Liabilities and Shareholders’ Equity |
₩ |
|||||||||||
|
|
|
|
(In millions of won except for per share data) |
Note |
2021 |
2020 |
2019 |
||||||||||||
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue and other income: |
||||||||||||||||
Revenue |
4,36 |
₩ |
||||||||||||||
Other income |
4,29,36 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Operating expenses: |
36 |
|||||||||||||||
Labor |
||||||||||||||||
Commissions |
7 |
|||||||||||||||
Depreciation and amortization |
4 |
|||||||||||||||
Network interconnection |
||||||||||||||||
Leased lines |
||||||||||||||||
Advertising |
||||||||||||||||
Rent |
||||||||||||||||
Cost of goods sold |
||||||||||||||||
Others |
4,29 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Operating profit |
4 |
|||||||||||||||
Finance income |
4,30 |
|||||||||||||||
Finance costs |
4,30 |
( |
) | ( |
) | ( |
) | |||||||||
Gain relating to investments in subsidiaries, associates and joint ventures, net |
4,12 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Profit before income tax |
4 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Income tax expense |
31 |
|||||||||||||||
Profit from continuing operations |
||||||||||||||||
Profit from discontinued operations, net of taxes |
41 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Profit for the year |
₩ |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Attributable to: |
||||||||||||||||
Owners of the Parent Company |
₩ |
|||||||||||||||
Non-controlling interests |
( |
) | ( |
) | ||||||||||||
Earnings per share |
32 |
|||||||||||||||
Basic earnings per share (in won) |
₩ |
|||||||||||||||
Basic earnings per share — continuing operations (in won) |
||||||||||||||||
Diluted earnings per share (in won) |
||||||||||||||||
Diluted earnings per share — continuing operations (in won) |
(In millions of won) |
Note |
2021 |
2020 |
2019 |
||||||||||||
Profit for the year |
₩ |
|||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||
Items that will never be reclassified to profit or loss, net of taxes: |
||||||||||||||||
Remeasurement of defined benefit liabilities |
21 |
( |
) | ( |
) | |||||||||||
Net change in other comprehensive income (loss) of investments in associates and joint ventures |
1 2 ,28 |
( |
) | |||||||||||||
Valuation gain (loss) on financial assets at fair value through other comprehensive income |
28,3 0 |
( |
) | |||||||||||||
Items that are or may be reclassified subsequently to profit or loss, net of taxes: |
||||||||||||||||
Net change in other comprehensive income (loss) of investments in associates and joint ventures |
1 2 ,28 |
( |
) | |||||||||||||
Net change in unrealized fair value of derivatives |
22,28,30 |
|||||||||||||||
Foreign currency translation differences for foreign operations |
28 |
( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|||||||||||
Other comprehensive income for the year, net of taxes |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income |
₩ |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income (loss) attributable to: |
|
|||||||||||||||
Owners of the Parent Company |
₩ |
|
|
|||||||||||||
Non-controlling interests |
( |
) |
(In millions of won) |
Attributable to owners |
Non-controlling interests |
Total equity |
|||||||||||||||||||||||||||||
Share capital |
Capital surplus (deficit) and others |
Hybrid bonds |
Retained earnings |
Reserves |
Sub-total |
|||||||||||||||||||||||||||
Balance, December 31, 2018 |
₩ |
( |
) |
( |
) |
|||||||||||||||||||||||||||
Impact of adopting IFRS 16 in 2019 |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, January 1, 2019(As reported) |
( |
) |
( |
) |
||||||||||||||||||||||||||||
Changes in accounting policies |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, January 1, 2019(Restated) |
( |
) |
( |
) |
||||||||||||||||||||||||||||
Total comprehensive income: |
||||||||||||||||||||||||||||||||
Profit (loss) for the year |
— | — | — | — | ( |
) | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 12,21,22,28,30) |
— | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
— | — | — | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Transactions with owners: |
||||||||||||||||||||||||||||||||
Annual dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Interim dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Share option (note 26) |
— | — | — | — | ||||||||||||||||||||||||||||
Interest on hybrid bonds (note 25) |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Disposal of treasury shares (note 24) |
— | |
— | — | — | — | ||||||||||||||||||||||||||
Changes in ownership in subsidiaries (note 1 1 ) |
— | — | — | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
— | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, December 31, 2019 |
₩ |
( |
) |
( |
) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
Attributable to owners |
Non-controlling interests |
Total equity |
|||||||||||||||||||||||||||||
Share capital |
Capital surplus (deficit) and others |
Hybrid bonds |
Retained earnings |
Reserves |
Sub-total |
|||||||||||||||||||||||||||
Balance, January 1, 2020 |
₩ |
( |
) |
( |
) |
|||||||||||||||||||||||||||
Total comprehensive income: |
||||||||||||||||||||||||||||||||
Profit (loss) for the year |
— | — | — | — | ( |
) | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 1 2 ,21,22,28,30) |
— | — | — | ( |
) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Transactions with owners: |
||||||||||||||||||||||||||||||||
Annual dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Interim dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Share option (note 26) |
— | — | — | — | ||||||||||||||||||||||||||||
Interest on hybrid bonds (note 25) |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Acquisition of treasury shares (note 24) |
— | ( |
) | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Changes in ownership in subsidiaries (note 1 1 ) |
— | — | — | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
— | ( |
) | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, December 31, 2020 |
₩ |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
Attributable to owners |
Non-controlling interests |
Total equity |
|||||||||||||||||||||||||||||
Share capital |
Capital surplus (deficit) and others |
Hybrid bonds |
Retained earnings |
Reserves |
Sub-total |
|||||||||||||||||||||||||||
Balance, January 1, 2021 |
₩ |
|||||||||||||||||||||||||||||||
Total comprehensive income: |
||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income (loss) (note 1 2 ,21,22,28,30) |
— | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Transactions with owners: |
||||||||||||||||||||||||||||||||
Annual dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Interim dividends (note 33) |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Share option (note 26) |
— | — | — | — | ||||||||||||||||||||||||||||
Interest on hybrid bonds (note 25) |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Acquisition of treasury shares (note 24) |
— | ( |
) | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Disposal of treasury shares (note 24) |
— | — | — | — | — | |||||||||||||||||||||||||||
Retirement of treasury shares (note 24) |
— | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||
Changes from spin-off (note 41) |
( |
) | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Changes in ownership in subsidiaries (note 1 1 ) |
— | — | — | — | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, December 31, 2021 |
₩ |
( |
) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
Note |
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities: |
||||||||||||||
Cash generated from operating activities |
||||||||||||||
Profit for the year |
₩ |
|||||||||||||
Adjustments for income and expenses |
38 |
|||||||||||||
Changes in assets and liabilities related to operating activities |
38 |
( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||
Interest received |
||||||||||||||
Dividends received |
||||||||||||||
Interest paid |
( |
) | ( |
) | ( |
) | ||||||||
Income tax paid |
( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
||||||||||||||
|
|
|
|
|
|
|||||||||
Cash flows from investing activities: |
||||||||||||||
Cash inflows from investing activities: |
||||||||||||||
Decrease in short-term financial instr uments, net |
— | |||||||||||||
Decrease in short-term investment securities, net |
||||||||||||||
Collection of short-term loans |
||||||||||||||
Decrease in long-term financial instruments |
||||||||||||||
Proceeds from disposals of long-term investment securities |
||||||||||||||
Proceeds from disposals of investments in associates and joint ventures |
||||||||||||||
Proceeds from disposals of property and equipment |
||||||||||||||
Proceeds from disposals of intangible assets |
||||||||||||||
Collection of long-term loans |
||||||||||||||
Decrease in deposits |
||||||||||||||
Proceeds from settlement of derivatives |
||||||||||||||
Collection of lease receivables |
— | — | ||||||||||||
Proceeds from disposals of subsidiaries |
— | |||||||||||||
Cash inflow from business combination, net |
— | |||||||||||||
Cash inflow from transfers of business, net |
— | |||||||||||||
|
|
|
|
|
|
|||||||||
Cash outflows for investing activities: |
||||||||||||||
Increase in short-term financial instruments, net |
— | ( |
) | — | ||||||||||
Increase in short-term loans |
( |
) | ( |
) | ( |
) | ||||||||
Increase in long-term loans |
( |
) | ( |
) | ( |
) | ||||||||
Increase in long-term financial instruments |
( |
) | ( |
) | — | |||||||||
Acquisitions of long-term investment securities |
( |
) | ( |
) | ( |
) | ||||||||
Acquisitions of investments in associates and joint ventures |
( |
) | ( |
) | ( |
) | ||||||||
Acquisitions of property and equipment |
( |
) | ( |
) | ( |
) | ||||||||
Acquisitions of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||
Increase in deposits |
( |
) | ( |
) | ( |
) | ||||||||
Cash outflow for business combinations, net |
( |
) | ( |
) | ( |
) | ||||||||
Cash outflow for disposal and liquidation of subsidiaries |
— | — | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||
( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
₩ |
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
(In millions of won) |
Note |
2021 |
2020 |
2019 |
||||||||||
Cash flows from financing activities: |
||||||||||||||
Cash inflows from financing activities: |
||||||||||||||
Proceeds from short-term borrowings, net |
₩ |
— | — | |||||||||||
Proceeds from issuance of debentures |
||||||||||||||
Proceeds from long-term borrowings |
— | |||||||||||||
Increase in financial liabilities at FVTPL |
— | — | ||||||||||||
Cash inflows from settlement of derivatives |
||||||||||||||
Proceeds from disposals of treasury shares |
— | — | ||||||||||||
Transactions with non-controlling shareholders |
||||||||||||||
|
|
|
|
|
|
|||||||||
Cash outflows for financing activities: |
||||||||||||||
Repayments of short-term borrowings, net |
( |
) | — | ( |
) | |||||||||
Repayments of long-term payables — other |
( |
) | ( |
) | ( |
) | ||||||||
Repayments of debentures |
( |
) | ( |
) | ( |
) | ||||||||
Repayments of long-term borrowings |
( |
) | ( |
) | ( |
) | ||||||||
Payments of dividends |
( |
) | ( |
) | ( |
) | ||||||||
Payments of interest on hybrid bonds |
( |
) | ( |
) | ( |
) | ||||||||
Repayments of lease liabilities |
( |
) | ( |
) | ( |
) | ||||||||
Acquisition of treasury shares |
( |
) | ( |
) | — | |||||||||
Cash outflows resulting from spin-off |
( |
) | — | — | ||||||||||
Transactions with non-controlling shareholders |
( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||||
( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||
Net cash used in financing activities |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) |
( |
) | ||||||||||
Cash and cash equivalents at beginning of the year |
||||||||||||||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at end of the year |
₩ |
|||||||||||||
|
|
|
|
|
|
1. |
Reporting Entity |
Number of shares |
Percentage of total shares issued (%) |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
SK Inc. |
|
|
|
|
|
| ||||||||||
National Pension Service |
|
|
|
|
|
| ||||||||||
Institutional investors and other shareholders |
|
|
|
|
|
| ||||||||||
Kakao Co rp . |
|
|
|
|
|
| ||||||||||
Treasury shares |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)(*1) |
||||||||||||||
Subsidiary |
Location |
Primary business |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||||||||
Subsidiaries owned by the Parent Company |
|
|||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
— |
Ownership (%)(*1) |
||||||||||||||
Subsidiary |
Location |
Primary business |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
||||||||||||||
|
||||||||||||||
|
Quantum information and communications service |
— | ||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
— | |||||||||||||
Subsidiaries owned by SK Planet Co., Ltd.(*2) | |
— | ||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
K-net Culture and Contents Venture Fund |
— | |||||||||||||
Subsidiaries owned by DREAMUS COMPANY(*2) | |
— | ||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
Subsidiaries owned by SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co., Ltd.)(*2) | |
System software development and supply services |
— | |||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
Subsidiaries owned by SK Broadband Co., Ltd. | |
Operation of information and communication facility |
||||||||||||
|
Production and supply services of broadcasting programs |
— | ||||||||||||
Subsidiary owned by Quantum Innovation Fund I | |
|||||||||||||
Subsidiary owned by SK Telecom Japan Inc. | |
|||||||||||||
Subsidiary owned by id Quantique SA(*2) |
|
|
|
|
|
|
— |
|
|
|
|
|
Ownership (%)(*1) |
||||||||||||||
Subsidiary |
Location |
Primary business |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||||||||
Subsidiaries owned by FSK L&S Co., Ltd.(*2) | |
— | ||||||||||||
|
— | |||||||||||||
|
— | |||||||||||||
Subsidiaries owned by Incross Co., Ltd.(*2) | |
— | ||||||||||||
|
— | |||||||||||||
Others(*4) | |
|||||||||||||
|
(*1) | The ownership interest represents direct ownership interest in subsidiaries either by the Parent Company or subsidiaries of the Parent Company. |
(*2) | Details of changes in the consolidation scope for year ended December 31, 2021 are presented in note 1-(4). |
(*3) | The Parent Company acquired ₩ |
(*4) | Others are owned by Atlas Investment and another subsidiary of the Parent Company. |
1) | Condensed financial information of significant subsidiaries as of and for the year ended December 31, 2021 is as follows: |
(In millions of won) |
As of December 31, 2021 |
2021 |
||||||||||||||||||
Subsidiary |
Total assets |
Total liabilities |
Total equity |
Revenue |
Profit |
|||||||||||||||
SK Telink Co., Ltd. |
₩ |
|||||||||||||||||||
SK Broadband Co., Ltd. |
||||||||||||||||||||
PS&Marketing Corporation |
||||||||||||||||||||
SERVICE ACE Co., Ltd. |
||||||||||||||||||||
SERVICE TOP Co., Ltd. |
||||||||||||||||||||
SK O&S Co., Ltd. |
||||||||||||||||||||
Home & Service Co., Ltd. |
||||||||||||||||||||
SK stoa Co., Ltd. |
2) | Condensed financial information of significant subsidiaries as of and for the year ended December 31, 2020 is as follows: |
(In millions of won) |
As of December 31, 2020 |
2020 |
||||||||||||||||||
Subsidiary |
Total assets |
Total liabilities |
Total equity |
Revenue |
Profit (loss) |
|||||||||||||||
SK Telink Co., Ltd. |
₩ |
|||||||||||||||||||
Eleven Street Co., Ltd. |
( |
) | ||||||||||||||||||
SK m&service Co., Ltd. |
||||||||||||||||||||
SK Broadband Co., Ltd. |
||||||||||||||||||||
K-net Culture and Contents Venture Fund |
— | ( |
) | |||||||||||||||||
PS&Marketing Corporation |
( |
) | ||||||||||||||||||
SERVICE ACE Co., Ltd. |
||||||||||||||||||||
SERVICE TOP Co., Ltd. |
||||||||||||||||||||
SK O&S Co., Ltd. |
||||||||||||||||||||
SK Planet Co., Ltd. |
||||||||||||||||||||
DREAMUS COMPANY(*1) |
( |
) | ||||||||||||||||||
SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co., Ltd.)(*2) |
||||||||||||||||||||
One Store Co., Ltd. |
||||||||||||||||||||
Home & Service Co., Ltd. |
( |
) | ||||||||||||||||||
SK stoa Co., Ltd. |
||||||||||||||||||||
FSK L&S Co., Ltd.(*3) |
||||||||||||||||||||
Incross Co., Ltd.(*4) |
||||||||||||||||||||
T map Mobility Co., Ltd. |
( |
) |
(*1) | The condensed financial information of DREAMUS COMPANY is consolidated financial information including iriver Enterprise Ltd. and three other subsidiaries of DREAMUS COMPANY. |
(*2) | The condensed financial information of SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd.) is consolidated financial information including SKinfosec Information Technology(Wuxi) Co., Ltd. and two other subsidiaries of SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd.) and including profit and loss which Life Security & Holdings Co., Ltd. recognized prior to the merger. |
(*3) | The condensed financial information of FSK L&S Co., Ltd. is consolidated financial information including FSK L&S (Shanghai) Co., Ltd. and two other subsidiaries of FSK L&S Co., Ltd. |
(*4) | The condensed financial information of Incross Co., Ltd. is consolidated financial information including Infra Communications Co., Ltd. and another subsidiary of Incross Co., Ltd. |
(In millions of won) |
As of December 31, 2019 |
2019 |
||||||||||||||||||
Subsidiary |
Total assets |
Total liabilities |
Total equity |
Revenue |
Profit (loss) |
|||||||||||||||
SK Telink Co., Ltd.(*1) |
₩ |
|||||||||||||||||||
Eleven Street Co., Ltd. |
( |
) | ||||||||||||||||||
SK m&service Co., Ltd. |
||||||||||||||||||||
SK Broadband Co., Ltd. |
||||||||||||||||||||
K-net Culture and Contents Venture Fund |
— | ( |
) | |||||||||||||||||
PS&Marketing Corporation |
||||||||||||||||||||
SERVICE ACE Co., Ltd. |
||||||||||||||||||||
SERVICE TOP Co., Ltd. |
||||||||||||||||||||
SK O&S Co., Ltd. |
||||||||||||||||||||
SK Planet Co., Ltd. |
||||||||||||||||||||
DREAMUS COMPANY(*2) |
( |
) | ||||||||||||||||||
Life & Security Holdings Co., Ltd.(*3) |
||||||||||||||||||||
SK Infosec Co., Ltd.(*4) |
||||||||||||||||||||
One Store Co., Ltd. |
( |
) | ||||||||||||||||||
Home & Service Co., Ltd. |
( |
) | ||||||||||||||||||
SK stoa Co., Ltd. |
||||||||||||||||||||
FSK L&S Co., Ltd.(*5) |
||||||||||||||||||||
Incross Co., Ltd.(*6) |
(*1) | The condensed financial information of SK Telink Co., Ltd. is consolidated financial information including SK TELINK VIETNAM Co., Ltd. |
(*2) | The condensed financial information of DREAMUS COMPANY is consolidated financial information including iriver Enterprise Ltd. and three other subsidiaries of DREAMUS COMPANY. |
(*3) | The condensed financial information of Life & Security Holdings Co., Ltd. is consolidated financial information including ADT CAPS Co., Ltd. and two other subsidiaries of Life & Security Holdings Co., Ltd. |
(*4) | The condensed financial information of SK Infosec Co., Ltd. is consolidated financial information including SKinfosec Information Technology(Wuxi) Co., Ltd. |
(*5) | The condensed financial information of FSK L&S Co., Ltd. is consolidated financial information including FSK L&S (Shanghai) Co., Ltd. and another subsidiary of FSK L&S Co., Ltd. |
(*6) | The condensed financial information of Incross Co., Ltd. is consolidated financial information including Infra Communications Co., Ltd. and another subsidiary from the date of acquisition to December 31, 2019. |
Subsidiary |
Reason | |
Studio Dolphin Co., Ltd. |
Acquired by DREAMUS COMPANY | |
Media S Co., Ltd. |
Established by SK Broadband Co., Ltd. | |
FSK L&S (Jiangsu) Co., Ltd. |
Established by FSK L&S Co., Ltd. | |
Rokmedia Co., Ltd. |
Acquired by One Store Co., Ltd. | |
YLP Inc. |
Acquired by T map Mobility Co., Ltd. | |
GOOD SERVICE Co., Ltd. |
Acquired by T map Mobility Co., Ltd. | |
CAPS America, Inc. |
Established by SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd.) |
Subsidiary |
Reason | |
ADT CAPS Co., Ltd. |
Merged into SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd., at the time of merger, SK Infosec Co., Ltd.) | |
One Store Co., Ltd. |
Transferred to spin-off company | |
SK Planet Co., Ltd. |
Transferred to spin-off company | |
Eleven Street Co., Ltd. |
Transferred to spin-off company | |
DREAMUS COMPANY |
Transferred to spin-off company | |
SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co., Ltd.) |
Transferred to spin-off company | |
id Quantique SA |
Transferred to spin-off company | |
SK Square Americas, Inc. (Formerly, SK Telecom TMT Investment Corp.) |
Transferred to spin-off company | |
FSK L&S Co., Ltd. |
Transferred to spin-off company | |
Incross Co., Ltd. |
Transferred to spin-off company | |
T map Mobility Co., Ltd. |
Transferred to spin-off company | |
Rokmedia Co., Ltd. |
Transferred to spin-off company | |
SK m&service Co., Ltd. |
Transferred to spin-off company | |
SK Planet Global Holdings Pte. Ltd. |
Transferred to spin-off company | |
SKP America LLC. |
Transferred to spin-off company | |
K-net Culture and Contents Venture Fund |
Transferred to spin-off company |
Subsidiary |
Reason | |
iriver Enterprise Ltd. |
Transferred to spin-off company | |
iriver China Co., Ltd. |
Transferred to spin-off company | |
Dongguan iriver Electronics Co., Ltd. |
Transferred to spin-off company | |
LIFE DESIGN COMPANY Inc. |
Transferred to spin-off company | |
Studio Dolphin Co., Ltd. |
Transferred to spin-off company | |
SKinfosec Information Technology(Wuxi) Co., Ltd. |
Transferred to spin-off company | |
CAPSTEC Co., Ltd. |
Transferred to spin-off company | |
CAPS America, Inc. |
Transferred to spin-off company | |
Id Quantique LLC |
Transferred to spin-off company | |
FSK L&S (Shanghai) Co., Ltd. |
Transferred to spin-off company | |
FSK L&S (Hungary) Co., Ltd. |
Transferred to spin-off company | |
FSK L&S VIETNAM COMPANY LIMITED |
Transferred to spin-off company | |
FSK L&S (Jiangsu) Co., Ltd. |
Transferred to spin-off company | |
Infra Communications Co., Ltd. |
Transferred to spin-off company | |
Mindknock Co., Ltd. |
Transferred to spin-off company | |
YLP Inc. |
Transferred to spin-off company | |
GOOD SERVICE Co., Ltd. |
Transferred to spin-off company |
(In millions of won) |
SK Broadband Co., Ltd. |
|||
Ownership of non-controlling interests (%) |
||||
As of December 31, 2021 |
||||
Current assets |
₩ |
|||
Non-current assets |
||||
Current liabilities |
( |
) | ||
Non-current liabilities |
( |
) | ||
Net assets |
||||
Fair value adjustment and others |
( |
) | ||
Net assets on the consolidated financial statements |
||||
Carrying amount of non-controlling interests |
||||
2021 |
||||
Revenue |
₩ |
|||
Profit for the year |
||||
Depreciation of the fair value adjustment and others |
||||
Profit for the year on the consolidated financial statements |
||||
Total comprehensive income |
||||
Profit attributable to non-controlling interests |
||||
Net cash provided by operating activities |
₩ |
|||
Net cash used in investing activities |
( |
) | ||
Net cash used in financing activities |
( |
) | ||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | ||
Net increase in cash and cash equivalents |
||||
Dividends paid to non-controlling interests for the year ended December 31, 2021 |
₩ |
(In millions of won) |
DREAMUS COMPANY |
One Store Co., Ltd. |
Eleven Street Co., Ltd. |
SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd.)(*) |
Incross Co., Ltd. |
SK Broadband Co., Ltd. |
||||||||||||||||||
Ownership of non-controlling interests (%) |
||||||||||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||||||
Non-current assets |
||||||||||||||||||||||||
Current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Non-current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net assets |
||||||||||||||||||||||||
Fair value adjustment and others |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||
Net assets on the consolidated financial statements |
( |
) | ||||||||||||||||||||||
Carrying amount of non-controlling interests |
( |
) | ||||||||||||||||||||||
2020 |
||||||||||||||||||||||||
Revenue |
₩ |
|||||||||||||||||||||||
Profit (loss) for the year |
( |
) | ( |
) | ||||||||||||||||||||
Depreciation of the fair value adjustment and others |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||
Profit (loss) for the year on the consolidated financial statements |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Total comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Profit (loss) attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net cash provided by operating activities |
₩ |
|||||||||||||||||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | — | ( |
) | ( |
) | — | — | |||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) | ||||||||||||||||||||
Dividends paid to non-controlling interests for the year ended December 31, 2020 |
₩ |
— | — | — | — |
(*) | The condensed financial information of SK Shieldus Co., Ltd.(Formerly, ADT CAPS Co., Ltd.) includes profit and loss, cash flows which Life Security & Holdings Co., Ltd. recognized prior to the merger. |
(In millions of won) |
DREAMUS COMPANY |
One Store Co., Ltd. |
Eleven Street Co., Ltd. |
Life & Security Holdings Co., Ltd. |
Incross Co., Ltd. |
|||||||||||||||
Ownership of non-controlling interests (%) |
||||||||||||||||||||
As of December 31, 2019 |
||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Non-current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net assets |
||||||||||||||||||||
Fair value adjustment and others |
— | — | ( |
) | ( |
) | — | |||||||||||||
Net assets on the consolidated financial statements |
( |
) | ||||||||||||||||||
Carrying amount of non- controlling interests |
( |
) | ||||||||||||||||||
2019 |
||||||||||||||||||||
Revenue |
₩ |
|||||||||||||||||||
Profit (loss) for the year |
( |
) | ( |
) | ( |
) | ||||||||||||||
Depreciation of the fair value adjustment and others |
— | — | ( |
) | ( |
) | — | |||||||||||||
Profit (loss) for the year on the consolidated financial statements |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Total comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Profit (loss) attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net cash provided by (used in) operating activities |
₩ |
( |
) | ( |
) | |||||||||||||||
Net cash provided by (used in) investing activities |
( |
) | ( |
) | ( |
) | ||||||||||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Effects on exchange rate changes on cash and cash equivalents |
— | — | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) | ( |
) | ||||||||||||||
Dividend paid to non- controlling interests for the year ended December 31, 2019 |
₩ |
— | — | — |
2. |
Basis of Preparation |
• | derivative financial instruments measured at fair value; |
• | financial instruments measured at fair value through profit or loss (“FVTPL”); |
• | financial instruments measured at fair value through other comprehensive income (“FVOCI”); |
• | liabilities (assets) for defined benefit plans recognized at the total present value of defined benefit obligations less the net of the fair value of plan assets |
• |
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; |
• |
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
• |
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
3. |
Significant Accounting Policies |
• |
when the basis of determining the contractual cash flows of a financial asset or financial liability measured at amortized cost changed as a result of interest rate benchmark reform (“IBOR reform”), the Group updates the effective interest rate of the financial asset or financial liability rather than the carry amount and, |
• |
when the basis for determining the contractual cash flows of the hedged item or hedging instrument changes as a result of the IBOR reform, the exception permits the hedge relationship to be continued while the Group amends the hedge documentation of that hedging relationship to reflect the changes required by IBOR reform. |
• | FVTPL |
• | FVOCI — equity investment |
• | FVOCI — debt investment |
• | Financial assets at amortized cost |
• | it is held within a business model whose objective is to hold assets to collect contractual cash flows; and |
• | its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates. |
• | it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and |
• | its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates. |
Financial assets at FVTPL |
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. | |
Financial assets at amortized cost |
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. | |
Debt investments at FVOCI |
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. | |
Equity investments at FVOCI |
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. |
• | the contractual rights to the cash flows from the financial asset expire; or |
• | it transfers the rights to receive the contractual cash flows in a transaction in which either: |
• | substantially all of the risks and rewards of ownership of the financial asset are transferred; or |
• | the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. |
• | the change is necessary as a direct consequence of the reform; and |
• | the new basis for determining the contractual cash flows is economically equivalent to the previous basis – i.e. the basis immediately before the change. |
• | to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the respective item or instrument; or |
• | when the hedging relationship is discontinued. |
Useful lives (years) | ||
Buildings and structures |
||
Machinery |
||
Other property and equipment |
||
Right-of-use |
Useful lives (years) | ||
Frequency usage rights |
||
Land usage rights |
||
Industrial rights |
||
Development costs |
||
Facility usage rights |
||
Customer relations |
||
Other |
• |
fixed payments, including in-substance fixed payments |
• |
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date |
• |
amounts expected to be payable under a residual value guarantee |
• |
the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. |
• | The most likely amount: the single most likely amount in a range of possible outcomes. |
• | The expected value: the sum of the probability-weighted amounts in a range of possible outcomes. |
• |
represents a separate major line of business or geographic area of operations; |
• |
is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or |
• |
is a subsidiary acquired exclusively with a view to resale. |
• |
Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37). |
• |
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |
• |
COVID-19-Related |
• |
Reference to Conceptual Framework (Amendments to IFRS 3). |
• |
Annual Improvements to IFRS Standards 2018-2020. |
• |
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16). |
• |
Classification of Liabilities as Current or Non-current (Amendments to IAS 1). |
• |
IFRS 17 Insurance Contracts Insurance Contracts |
• |
Disclosure of Accounting Polices (Amendments to IAS 1). |
• |
Definition of Accounting Estimates (Amendments to IAS 8). |
4. |
Operating Segments |
(1) | Segment information for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||
Continuing operations |
Discontinued operations |
|||||||||||||||||||||||||||
Cellular services |
Fixed-line telecommunication services |
Others(*1) |
Sub-total |
Adjustments (*2) |
Total |
|||||||||||||||||||||||
Total revenue |
₩ | ( |
) | |||||||||||||||||||||||||
Inter-segment revenue |
( |
) | — | |||||||||||||||||||||||||
External revenue |
— | |||||||||||||||||||||||||||
Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
Operating profit (loss) |
||||||||||||||||||||||||||||
Finance income and costs, net |
( |
) | ( |
) | ||||||||||||||||||||||||
Gain relating to investments in subsidiaries, associates and joint ventures, net |
||||||||||||||||||||||||||||
Profit before income tax |
(In millions of won) |
||||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||
Continuing operations |
Discontinued operations |
|||||||||||||||||||||||||||
Cellular services |
Fixed-line telecommunication services |
Others(*1) |
Sub-total |
Adjustments (*2) |
Total |
|||||||||||||||||||||||
Total revenue |
₩ |
( |
) | |||||||||||||||||||||||||
Inter-segment revenue |
( |
) | — | |||||||||||||||||||||||||
External revenue |
— | |||||||||||||||||||||||||||
Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
Operating profit (loss) |
( |
) | ||||||||||||||||||||||||||
Finance income and costs, net |
( |
) | ( |
) | ||||||||||||||||||||||||
Gain relating to investments in subsidiaries, associates and joint ventures, net |
||||||||||||||||||||||||||||
Profit before income tax |
||||||||||||||||||||||||||||
(In millions of won) |
2019 |
||||||||||||||||||||||||||||
Continuing operations |
||||||||||||||||||||||||||||
Cellular services |
Fixed-line telecommunication services |
Others(*1) |
Sub-total |
Adjustments (*2) |
Total |
Discontinued operations |
||||||||||||||||||||||
Total revenue |
₩ |
( |
) | |||||||||||||||||||||||||
Inter-segment revenue |
( |
) | — | |||||||||||||||||||||||||
External revenue |
— | |||||||||||||||||||||||||||
Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||
Operating profit (loss) |
( |
) | ( |
) | ||||||||||||||||||||||||
Finance income and costs, net |
( |
) | ( |
) | ||||||||||||||||||||||||
Gain relating to investments in subsidiaries, associates and joint ventures, net |
||||||||||||||||||||||||||||
Profit before income tax |
(*1) |
The Parent Company carried out spin-off of its business of managing investments in semiconductor, new Information and Communication Technologies(“ICT”) and making new investments during the year ended December 31, 2021. Accordingly, the Group reclassified SK stoa Co., Ltd. from Commerce Services segment to Others segment. |
(*2) |
Adjustments for operating profit (loss) are the amount differences from operating profit (loss) included in CODM report which is based on Korean IFRS to operating profit (loss) under IFRS. The reconciliation of these amounts is included in note 4-(2). Adjustments for depreciation and amortization and operating profit (loss) also included the amount due to the consolidation adjustments, such as internal transactions. |
(2) | Reconciliation of total segment operating profit to consolidated operating profit from continuing operations for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Total segment operating profit (Before adjustments) |
₩ |
|||||||||||
Adjustments(*1) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total segment operating profit |
||||||||||||
Other operating income: |
||||||||||||
Gain on disposal of property and equipment and intangible assets |
||||||||||||
Others(*2) |
||||||||||||
|
|
|
|
|
|
|||||||
Other operating expenses: |
||||||||||||
Impairment loss on property and equipment and intangible assets |
( |
) | ( |
) | ( |
) | ||||||
Loss on disposal of property and equipment and intangible assets |
( |
) | ( |
) | ( |
) | ||||||
Donations |
( |
) | ( |
) | ( |
) | ||||||
Bad debt for accounts receivable — other |
( |
) | ( |
) | ( |
) | ||||||
Others(*3) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Consolidated operating profit from continuing operations |
₩ |
|||||||||||
|
|
|
|
|
|
(*1) | Adjustments for operating profit included the amount due to the consolidation adjustments, such as internal transactions. |
(*2) | Others for the year ended December 31, 2020 includes ₩ ₩ |
(*3) | Others for the years ended December 31, 2021, 2020 and 2019 include ₩ ₩ ₩ |
(3) | Disaggregation of operating revenues considering the economic factors that affect the amounts, timing and uncertainty of the Group’s revenue and future cash flows is as follows: |
(In millions of won) |
||||||||||||||
2021 |
2020 |
2019 |
||||||||||||
Goods and Services transferred at a point in time: |
|
|||||||||||||
Cellular revenue |
Goods(*1) | ₩ |
||||||||||||
Fixed-line telecommunication revenue |
Goods | |||||||||||||
Other revenue |
Others(*2) | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Goods and Services transferred over time: |
|
|||||||||||||
Cellular revenue |
Wireless service(*3) | |||||||||||||
Cellular interconnection | ||||||||||||||
Other(*4) | ||||||||||||||
Fixed-line telecommunication revenue |
Fixed-line service | |||||||||||||
Cellular interconnection | ||||||||||||||
Internet Protocol Television(*5) | ||||||||||||||
International calls | ||||||||||||||
Internet service and miscellaneous(*6) | ||||||||||||||
Other revenue |
Miscellaneous | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Continuing operations |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
||||||||||||||
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||
|
|
|
|
|
|
(*1) | Cellular revenue includes revenue from sales of handsets and other electronic accessories. |
(*2) | Miscellaneous other revenue includes revenue from considerations received for the product sales-type data broadcasting channel use, and sales of goods through data broadcasting. |
(*3) | Wireless service includes revenue from wireless voice and data transmission services principally derived from usage charges to wireless subscribers. |
(*4) | Other revenue includes revenue from billing and collection services as well as other miscellaneous services. |
(*5) | IPTV service revenue includes revenue from IPTV services principally derived from usage charges to IPTV subscribers. |
(*6) | Internet service includes revenue from the high speed broadband internet service principally derived from usage charges to subscribers as well as other miscellaneous services. |
5. |
Restricted Deposits |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Short-term financial instruments(*) |
₩ |
|||||||
Long-term financial instruments(*) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(*) | Financial instruments include charitable trust fund established by the Group where profits from the fund are donated to charitable institutions. As of December 31, 2021, the funds cannot be withdrawn before maturity. |
6. |
Trade and Other Receivables |
(1) | Details of trade and other receivables as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||
December 31, 2021 |
||||||||||||
Gross amount |
Loss allowance |
Carrying amount |
||||||||||
Current assets: |
||||||||||||
Accounts receivable — trade |
₩ |
( |
) | |||||||||
Short-term loans |
( |
) | ||||||||||
Accounts receivable — other(*) |
( |
) | ||||||||||
Accrued income |
||||||||||||
Guarantee deposits (Other current assets) |
||||||||||||
|
|
|
|
|
|
|||||||
( |
) | |||||||||||
Non-current assets: |
||||||||||||
Long-term loans |
( |
) | ||||||||||
Long-term accounts receivable — other(*) |
( |
) | ||||||||||
Guarantee deposits |
||||||||||||
Long-term accounts receivable — trade (Other non-current assets) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
( |
) | |||||||||||
|
|
|
|
|
|
|||||||
₩ |
( |
) | ||||||||||
|
|
|
|
|
|
(*) | Gross and carrying amounts of accounts receivable – other as of December 31, 2021 include ₩ |
(In millions of won) |
||||||||||||
December 31, 2020 |
||||||||||||
Gross amount |
Loss allowance |
Carrying amount |
||||||||||
Current assets: |
||||||||||||
Accounts receivable — trade |
₩ |
( |
) | |||||||||
Short-term loans |
( |
) | ||||||||||
Accounts receivable — other(*) |
( |
) | ||||||||||
Accrued income |
( |
) | ||||||||||
Guarantee deposits (Other current assets) |
||||||||||||
( |
) | |||||||||||
Non-current assets: |
||||||||||||
Long-term loans |
( |
) | ||||||||||
Long-term accounts receivable — other(*) |
||||||||||||
Guarantee deposits |
( |
) | ||||||||||
Long-term accounts receivable — trade (Other non-current assets) |
( |
) | ||||||||||
( |
) | |||||||||||
₩ |
( |
) | ||||||||||
(*) | Gross and carrying amounts of accounts receivable — other as of December 31, 2020 include ₩ |
(2) | Changes in the loss allowance on accounts receivable — trade measured at amortized costs for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||
Beginning balance |
Impairment(*1) |
Write-offs(*2) |
Collection of receivables previously written-off |
Business combination |
Spin-off |
Ending balance |
||||||||||||||||||||||
2021 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||
2020 |
₩ |
( |
) |
(*1) | Includes amounts related to discontinued operations. |
(*2) | The Group writes off the trade and other receivables that are determined to be uncollectable due to reasons such as termination of operations or bankruptcy. |
(3) | The Group applies the practical expedient that allows the Group to estimate the loss allowance for accounts receivable — trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Group uses its historical credit loss experience over the past three years and classifies the accounts receivable — trade by their credit risk characteristics and days overdue. Details of loss allowance on accounts receivable — trade as of December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||||||||
Less than 6 months |
6 months ~ 1 year |
1 ~ 3 years |
More than 3 years |
|||||||||||||||
Telecommunications service revenue |
Expected credit loss rate | % | % | % | % | |||||||||||||
Gross amount | ₩ |
|||||||||||||||||
Loss allowance | ||||||||||||||||||
Other revenue |
Expected credit loss rate | % | % | % | % | |||||||||||||
Gross amount | ₩ |
|||||||||||||||||
Loss allowance | ||||||||||||||||||
7. |
Prepaid expenses |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Current assets: |
||||||||
Incremental costs of obtaining contracts |
₩ |
|||||||
Others |
||||||||
₩ |
||||||||
Non-current assets: |
||||||||
Incremental costs of obtaining contracts |
₩ |
|||||||
Others |
||||||||
₩ |
||||||||
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Amortization and impairment losses recognized(*) |
₩ |
(*) | Includes amounts related to discontinued operations. |
8. |
Contract Assets and Liabilities |
(1) | Details of contract assets and liabilities as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Contract assets: |
||||||||
Allocation of consideration between performance obligations |
₩ |
|||||||
Contract liabilities: |
||||||||
Wireless service contracts |
||||||||
Customer loyalty programs |
||||||||
Fixed-line service contracts |
||||||||
Security services |
||||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(2) | The amount of revenue recognized for the years ended December 31, 2021 and 2020 related to the contract liabilities carried forward from the prior periods are ₩ ₩ |
(In millions of won) |
||||||||||||||||
Less than 1 year |
1 ~ 2 years |
More than 2 years |
Total |
|||||||||||||
Wireless service contracts |
₩ |
|||||||||||||||
Customer loyalty programs |
||||||||||||||||
Fixed-line service contracts |
||||||||||||||||
Others |
||||||||||||||||
|
₩ |
|||||||||||||||
|
|
|
|
|
|
|
|
9. |
Inventories |
(1) | Details of inventories as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||
Acquisition cost |
Write- down |
Carrying amount |
Acquisition cost |
Write- down |
Carrying amount |
|||||||||||||||||||
Merchandise |
₩ |
( |
) | ( |
) | |||||||||||||||||||
Finished goods |
( |
) | ||||||||||||||||||||||
Work in process |
( |
) | ||||||||||||||||||||||
Raw materials |
( |
) | ||||||||||||||||||||||
Supplies |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(2) | The amount of the inventory write-downs and write-off of inventories charged to statement of income are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Charged to cost of products that have been resold(*) |
₩ |
( |
) | ( |
) | |||||||
Write-off upon sale(*) |
( |
) | ( |
) | ( |
) |
(*) | Includes amounts related to discontinued operations. |
(3) | Inventories recognized as operating expenses for the years ended December 31, 2021, 2020, and 2019 are ₩ ₩ ₩ Those amounts include profit or loss from discontinued operations. |
10. |
Investment Securities |
(1) | Details of short-term investment securities as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||
Category |
December 31, 2021 |
December 31, 2020 |
||||||||
Beneficiary certificates |
FVTPL | ₩ |
(2) | Details of long-term investment securities as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||
Category |
December 31, 2021 |
December 31, 2020 |
||||||||
Equity instruments |
FVOCI(*) | ₩ |
||||||||
FVTPL | ||||||||||
Debt instruments |
FVOCI | |||||||||
FVTPL | ||||||||||
₩ |
||||||||||
(*) | The Group designated investment s in equity instruments that are not held for trading as financial assets at FVOCI, the amounts to those FVOCI as of December 31, 2021 and 2020 are ₩ ₩ ₩ spin-off, and the Parent Company has designated the investments in equity instruments at FVOCI. |
11. |
Business Combinations |
(1) | 2021 |
1 ) |
Acquisition of Studio Dolphin Co., Ltd. by DREAMUS COMPANY: |
(i) | Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
rd floor, 10, Jandari-ro 7an-gil, Mapo-gu, Seoul, Korea | |
CEO |
Dong-Hee | |
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Accounts receivable — trade and other |
||||
Other assets |
||||
Accounts payable — trade and other |
( |
) | ||
Short-term borrowings |
( |
) | ||
Other liabilities |
( |
) | ||
III. Goodwill(I - II) |
₩ |
|||
2 ) |
Acquisition of YLP Inc. by T map Mobility Co., Ltd.: |
(i) |
Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
Cheongwon-ro, Pyeongtaek-si, Gyeonggi-do, Korea | |
CEO |
Hyeok-Ju | |
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
Fair value of shares of T map Mobility Co., Ltd. |
||||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Financial instruments |
||||
Accounts receivable — trade and other, net |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Other assets |
||||
Borrowings |
( |
) | ||
Accounts payable — trade and other |
( |
) | ||
Lease liabilities |
( |
) | ||
Other liabilities |
( |
) | ||
Deferred tax liabilities |
( |
) | ||
III. Goodwill(I - II) |
₩ |
|||
3) |
Acquisition of Rokmedia Co., Ltd. by One Store Co., Ltd.: |
(i) | Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
rd floor, 330, Seongam-ro, Mapo-gu, Seoul, Korea | |
CEO |
Jun-Gyu / Kim, Jeong-Su | |
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Financial instruments |
||||
Accounts receivable — trade and other, net |
||||
Inventories |
||||
Other assets |
||||
Short-term loans, net |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Accounts payable — trade and other |
( |
) | ||
Contract liabilities |
( |
) | ||
Borrowings |
( |
) | ||
Provisions |
( |
) | ||
Lease liabilities |
( |
) | ||
Other liabilities |
( |
) | ||
Deferred tax liabilities |
( |
) | ||
Income tax payable |
( |
) | ||
III. Goodwill(I - II) |
₩ |
|||
4) |
Acquisition of GOOD SERVICE Co., Ltd. by T map Mobility Co., Ltd.: |
(i) | Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
th floor, 54, Daeheung-ro, Mapo-gu, Seoul, Korea | |
CEO |
||
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Financial instruments |
||||
Accounts receivable — trade and other, net |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Accounts payable — trade and other |
( |
) | ||
Other liabilities |
( |
) | ||
Deferred tax liabilities |
( |
) | ||
Lease liabilities |
( |
) | ||
III. Goodwill(I - II) |
₩ |
|||
(2) | 2020 |
1) | Merger of Tbroad Co., Ltd. and two other companies by SK Broadband Co., Ltd.: |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Fair value of shares of SK Broadband Co., Ltd. |
₩ |
|||
Fair value of derivative liability(*1) |
||||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Short-term financial instruments |
||||
Accounts receivable — trade and other |
||||
Prepaid expenses |
||||
Contract assets |
||||
Long-term investment securities |
||||
Investments in associates and joint ventures |
||||
Property and equipment, net |
||||
Intangible assets, net(*2) |
||||
Other assets |
||||
Deferred tax assets |
||||
Accounts payable — trade and other |
( |
) | ||
Contract liabilities |
( |
) | ||
Income tax payable |
( |
) | ||
Provisions |
( |
) | ||
Defined benefit liabilities |
( |
) | ||
Other liabilities |
( |
) | ||
III. Goodwill(I - II) |
₩ |
|||
(*1) | The Parent Company has recognized fair value of obligations and rights in connection with the shareholders’ agreement with the acquiree’s shareholders as consideration for the business combination. (See note 22) |
(*2) | Identifiable intangible assets recognized by the Group in the business combination included customer relationships measured at fair value on the acquisition date of ₩374,019 million. Fair value of the customer relationship was estimated based on the multi-period excess earnings method (“MPEEM”). MPEEM is a valuation technique under income approach which estimates fair value by discounting the expected future excess earnings attributable to an intangible asset using risk adjusted discount rate. The following table shows the details of valuation technique used in measuring fair values as well as the significant unobservable inputs used. |
Type |
Valuation technique |
Significant unobservable inputs |
Interrelationship between key unobservable inputs and fair value measurement | |||
Customer relationships | MPEEM | • Estimated revenue per user • Future churn rates • Weighted average cost of capital (“WACC”) (7.7% for Tbroad Co., Ltd. and 8.3% for Tbroad Dongdaemun Broadcasting Co., Ltd.) |
• The fair value of customer relationship will increase if expected revenue per subscriber increases and customer churn rate in the future and WACC decrease. • The fair value of customer relationship will decrease if expected revenue per subscriber decreases and customer churn rate in the future and WACC increase. |
2) | Acquisition of Broadband Nowon Co.,Ltd. by the Parent Company: |
(i) | Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
Dobong-ro, Gangbuk-gu, Seoul, Korea | |
CEO |
Chang-Wan | |
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
Amounts |
|||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Accounts receivable — trade and other |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Other assets |
||||
Accounts payable — trade and other |
( |
) | ||
Other liabilities |
( |
) | ||
III. Non-controlling interests: |
||||
IV. Gain on bargain purchase(I - II+III) |
₩ |
( |
) | |
3) | Acquisition of security equipment construction and security services business of SK hystec inc. by ADT CAPS Co., Ltd. |
(In millions of won) |
||||
Amounts |
||||
I. Consideration transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Accounts receivable — trade and other |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Other assets |
||||
Accounts payable — trade and other |
( |
) | ||
Defined benefit liabilities |
( |
) | ||
Deferred tax liabilities |
( |
) | ||
Other liabilities |
( |
) | ||
III. Goodwill (I - II) |
₩ |
|||
4) | Merger of Life & Security Holdings Co., Ltd. by SK Infosec Co., Ltd. |
(3) | 2019 |
1) | Acquisition of Incross Co., Ltd. by the Parent Company |
(i) |
Summary of the acquiree |
Information of Acquiree | ||
Corporate name |
||
Location |
th floor, 1926, Nambusunhwan-ro, Gwanak-gu, Seoul, Korea | |
CEO |
Jae-won | |
Industry |
(ii) | Considerations transferred, identifiable assets acquired and liabilities assumed at the acquisition date are as follows: |
(In millions of won) |
||||
Amount |
||||
I. Considerations transferred: |
||||
Cash and cash equivalents |
₩ |
|||
II. Fair value of identifiable assets acquired and liabilities assumed: |
||||
Cash and cash equivalents |
||||
Short-term financial instruments |
||||
Accounts receivable — trade and other |
||||
Property and equipment, net |
||||
Intangible assets, net |
||||
Other assets |
||||
Accounts payable — trade and other |
( |
) | ||
Other liabilities |
( |
) | ||
III. Non-controlling interests: |
||||
IV. Goodwill(I - II+III) |
₩ |
|||
12. |
Investments in Associates and Joint Ventures |
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||
(In millions of won) |
Country |
Ownership (%) |
Carrying amount |
Ownership (%) |
Carrying amount |
|||||||||||||||
Investments in associates: |
||||||||||||||||||||
SK China Company Ltd. |
₩ |
₩ |
||||||||||||||||||
Korea IT Fund(*1) |
||||||||||||||||||||
KEB HanaCard Co., Ltd.(*2) |
||||||||||||||||||||
SK Telecom CS T1 Co., Ltd.(*3) |
— | — | ||||||||||||||||||
NanoEnTek, Inc.(*3) |
— | — | ||||||||||||||||||
UniSK |
||||||||||||||||||||
SK Technology Innovation Company |
|
|||||||||||||||||||
SK MENA Investment B.V. |
||||||||||||||||||||
SK hynix Inc.(*3) |
— | — | ||||||||||||||||||
SK Latin America Investment S.A. |
||||||||||||||||||||
Grab Geo Holdings PTE. LTD.(*3) |
— | — | ||||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
||||||||||||||||||||
Pacific Telecom Inc.(*2) |
||||||||||||||||||||
S.M. Culture & Contents Co., Ltd.(*4) |
||||||||||||||||||||
Content Wavve Co., Ltd.(*3) |
— | — | ||||||||||||||||||
Hello Nature Co., Ltd.(*3) |
— | — | ||||||||||||||||||
Digital Games International Pte. Ltd. |
||||||||||||||||||||
Invites Healthcare Co., Ltd.(*5) |
||||||||||||||||||||
Nam Incheon Broadcasting Co., Ltd. |
||||||||||||||||||||
NANO-X IMAGING LTD.(*3) |
— | — | ||||||||||||||||||
Home Choice Corp.(*2) |
||||||||||||||||||||
Carrot General Insurance Co., Ltd.(*6) |
— | — | ||||||||||||||||||
12CM JAPAN and others(*2,3,7) |
— | — | — | |||||||||||||||||
Investments in joint ventures: |
||||||||||||||||||||
Dogus Planet, Inc.(*3) |
— | — | ||||||||||||||||||
Finnq Co., Ltd.(*8) |
||||||||||||||||||||
NEXTGEN BROADCAST SERVICES CO, LLC(*3) |
— | — | ||||||||||||||||||
NEXTGEN ORCHESTRATION, LLC(*3) |
— | — | ||||||||||||||||||
Techmaker GmbH(*3) |
— | — | ||||||||||||||||||
UTC Kakao-SK Telecom ESG Fund(*8,9) |
— | — | ||||||||||||||||||
₩ |
₩ |
|||||||||||||||||||
(*1) | Investment in Korea IT Fund was classified as investment in associates as the Group does not have control over the investee under the contractual agreement with other shareholders. |
(*2) | These investments were classified as investments in associates as the Group can exercise significant influence through its right to appoint the members of the Board of Directors even though the Group has less than 20% of equity interests. |
(*3) | Investments in SK Telecom CS T1 Co., Ltd. and twenty- other associates and joint ventures were transferred to the three spin-off company for the year ended December 31, 2021. |
(*4) | The ownership interest has changed from |
(*5) | The Group disposed the entire shares of SK Telecom Smart City Management Co., Ltd. to Invites Healthcare Co., Ltd. for the year ended December 31, 2020 and additionally contributed ₩ |
(*6) | The Parent Company has entered into an agreement whereby the entire shares of Carrot General Insurance Co., Ltd. will transfer to T map Mobility Co., Ltd. In accordance with the agreement, the Parent Company reclassified the entire shares of Carrot General Insurance Co., Ltd. as non-current assets held for sale. (See note 41) |
(*7) | The Group disposed the entire shares of SK Wyverns Co., Ltd. and recognized ₩ ₩ of impairment loss for the investments in TreePay Co. Ltd., for the year ended December 31, 2021. |
(*8) | These investments were classified as investments in joint ventures as the Group has a joint control pursuant to the agreement with the other shareholders. |
(*9) | The Group newly invested ₩ |
(In millions of won, except for share data) |
December 31, 2021 |
December 31, 2020 |
||||||||||||||||||||||
Market price per share (in won) |
Number of shares |
Market value |
Market price per share (in won) |
Number of shares |
Market value |
|||||||||||||||||||
NanoEnTek, Inc.(*) |
₩ |
— | — | — | ||||||||||||||||||||
SK hynix Inc.(*) |
— | — | — | |||||||||||||||||||||
S.M. |
||||||||||||||||||||||||
NANO-X IMAGING LTD.(*) |
— | — | — | (USD |
) |
(*) | Investments in NanoEnTek, Inc., SK hynix Inc. and NANO-X IMAGING LTD. were transferred to the spin-off company for the year ended December 31, 2021. |
(In millions of won) |
KEB HanaCard Co., Ltd. (*) |
Korea IT Fund |
SK China Company Ltd. (*) |
SK South East Asia Investment Pte. Ltd. (*) |
||||||||||||
As of December 31, 2021 |
||||||||||||||||
Current assets |
₩ |
|||||||||||||||
Non-current assets |
||||||||||||||||
Current liabilities |
— | |||||||||||||||
Non-current liabilities |
— | — | ||||||||||||||
2021 |
||||||||||||||||
Revenue |
₩ |
|||||||||||||||
Profit (loss) for the year |
( |
) | ||||||||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||||||
Total comprehensive income |
(In millions of won) |
SK hynix Inc. (*) |
KEB HanaCard Co., Ltd. (*) |
Korea IT Fund |
SK China Company Ltd. (*) |
SK South East Asia Investment Pte. Ltd. (*) |
|||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
— | |||||||||||||||||||
Non-current liabilities |
— | — | ||||||||||||||||||
2020 |
||||||||||||||||||||
Revenue |
₩ |
— | ||||||||||||||||||
Profit (loss) for the year |
( |
) | ||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||
Total comprehensive income (loss) |
( |
) |
(In millions of won) |
SK hynix Inc. (*) |
KEB HanaCard Co., Ltd. (*) |
Korea IT Fund |
SK China Company Ltd. (*) |
SK South East Asia Investment Pte. Ltd. (*) |
|||||||||||||||
As of December 31, 2019 |
||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
— | |||||||||||||||||||
Non-current liabilities |
— | — | ||||||||||||||||||
2019 |
||||||||||||||||||||
Revenue |
₩ |
— | ||||||||||||||||||
Profit for the year |
||||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||||||
Total comprehensive income |
(*) | The financial information of SK hynix Inc., KEB HanaCard Co., Ltd., SK China Company Ltd. and SK South East Asia Investment Pte. Ltd. are consolidated financial information. In addition, the financial information of |
SK hynix Inc. as of and for the year ended 2019 is financial information before the change in accounting policy in connection with the application of interpretations published by International Financial Reporting Interpretations Committee on determining lease term, as the impact on the Group’s consolidated financial statements is immaterial. |
(In millions of won) |
Dogus Planet, Inc. |
Finnq Co., Ltd. |
||||||
As of December 31, 2020 |
||||||||
Current assets |
₩ |
|||||||
Cash and cash equivalents |
||||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Accounts payable, other payables and provisions |
||||||||
Non-current liabilities |
||||||||
2020 |
||||||||
Revenue |
₩ |
|||||||
Depreciation and amortization |
( |
) | ( |
) | ||||
Interest income |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Profit (loss) for the year |
( |
) | ||||||
Total comprehensive loss |
( |
) | ( |
) |
(In millions of won) |
Dogus Planet, Inc. |
Finnq Co., Ltd. |
||||||
As of December 31, 2019 |
||||||||
Current assets |
₩ |
|||||||
Cash and cash equivalents |
||||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Accounts payable, other payables and provisions |
||||||||
Non-current liabilities |
||||||||
2019 |
||||||||
Revenue |
₩ |
|||||||
Depreciation and amortization |
( |
) | ( |
) | ||||
Interest income |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Profit (loss) for the year |
( |
) | ||||||
Total comprehensive income (loss) |
( |
) |
(In millions of won) |
December 31, 2021 |
|||||||||||||||||||
Net assets |
Ownership interests (%) |
Net assets attributable to the ownership interests |
Cost-book value differentials |
Carrying amount |
||||||||||||||||
KEB HanaCard Co., Ltd. |
₩ |
|||||||||||||||||||
Korea IT Fund |
— | |||||||||||||||||||
SK China Company Ltd.(*1) |
||||||||||||||||||||
SK South East Asia Investment Pte. Ltd.(*1) |
— | |||||||||||||||||||
(In millions of won) |
December 31, 2020 |
|||||||||||||||||||
Net assets |
Ownership interests (%) |
Net assets attributable to the ownership interests |
Cost-book value differentials |
Carrying amount |
||||||||||||||||
SK hynix Inc.(*1,2) |
₩ |
|||||||||||||||||||
KEB HanaCard Co., Ltd. |
||||||||||||||||||||
Korea IT Fund |
— | |||||||||||||||||||
SK China Company Ltd.(*1) |
||||||||||||||||||||
SK South East Asia Investment Pte. Ltd.(*1) |
— |
(*1) | Net assets of these entities represent net assets excluding those attributable to their non-controlling interests. |
(*2) | The ownership interest is based on the number of shares owned by the Parent Company divided by the total shares issued by the investee company. The Group applied the equity method using the effective ownership interest which is based on the number of shares owned by the Parent Company and the investee’s total shares outstanding. The effective ownership interest applied for the equity method is 21.36%. |
2021 |
||||||||||||||||||||||||||||
(In millions of won) |
Beginning balance |
Acquisition and Disposal |
Share of profits (losses) |
Other compre- hensive income (loss) |
Other increase (decrease) |
Spin-off |
Ending balance |
|||||||||||||||||||||
Investments in associates: |
||||||||||||||||||||||||||||
SK China Company Ltd.(*1) |
₩ |
— |
( |
) |
— |
|||||||||||||||||||||||
Korea IT Fund(*1) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||
KEB HanaCard Co., Ltd. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
SK Telecom CS T1 Co., Ltd.(*2) |
( |
) |
( |
) |
— |
( |
) |
— |
||||||||||||||||||||
NanoEnTek, Inc.(*2) |
— |
( |
) |
— |
( |
) |
— |
|||||||||||||||||||||
UniSK |
— |
— |
— |
|||||||||||||||||||||||||
SK Technology Innovation Company |
— |
— |
— |
|||||||||||||||||||||||||
SK MENA Investment B.V. |
— |
— |
— |
|||||||||||||||||||||||||
SK hynix Inc.(*1,2) |
( |
) |
( |
) |
— |
|||||||||||||||||||||||
SK Latin America Investment S.A. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Grab Geo Holdings PTE. LTD.(*2) |
— |
— |
— |
— |
( |
) |
— |
|||||||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Pacific Telecom Inc. |
— |
— |
— |
|||||||||||||||||||||||||
S.M. Culture & Contents Co., Ltd. |
( |
) |
— |
— |
||||||||||||||||||||||||
Contents Wavve Co., Ltd.(*2) |
( |
) |
— |
— |
( |
) |
— |
|||||||||||||||||||||
Hello Nature Co., Ltd.(*2,3) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||
Digital Games International Pte. Ltd. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Invites Healthcare Co., Ltd. |
( |
) |
( |
) |
— |
— |
||||||||||||||||||||||
Nam Incheon Broadcasting Co., Ltd.(*1) |
— |
— |
( |
) |
— |
|||||||||||||||||||||||
NANO-X IMAGING LTD.(*2) |
( |
) |
( |
) |
— |
( |
) |
— |
||||||||||||||||||||
Home Choice Corp. |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||
Carrot General Insurance Co., Ltd.(*4) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||
Bertis Inc.(*2) |
— |
( |
) |
— |
— |
( |
) |
— |
||||||||||||||||||||
UT LLC(*2) |
— |
( |
) |
— |
— |
( |
) |
— |
||||||||||||||||||||
SPARKPLUS Co., Ltd.(*2) |
— |
— |
— |
— |
( |
) |
— |
|||||||||||||||||||||
12CM JAPAN and others(*2,5) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
( |
) |
( |
) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
||||||||||||||||||||||||||||
(In millions of won) |
Beginning balance |
Acquisition and Disposal |
Share of profits (losses) |
Other compre- hensive income (loss) |
Other increase (decrease) |
Spin-off |
Ending balance |
|||||||||||||||||||||
Investments in joint ventures: |
||||||||||||||||||||||||||||
Dogus Planet, Inc.(*2) |
₩ |
— |
( |
) |
( |
) |
— |
( |
) |
— |
||||||||||||||||||
Finnq Co., Ltd. |
— |
( |
) |
( |
) |
— |
— |
|||||||||||||||||||||
NEXTGEN BROADCAST SERVICES CO, LLC(*2) |
( |
) |
— |
( |
) |
— |
||||||||||||||||||||||
NEXTGEN ORCHESTRATION, LLC(*2) |
— |
— |
— |
( |
) |
— |
||||||||||||||||||||||
Techmaker GmbH(*2) |
— |
( |
) |
— |
( |
) |
— |
|||||||||||||||||||||
WAVVE Americas Inc. (Formerly, Korea Content Platform, Inc.)(*2) |
— |
( |
) |
— |
( |
) |
— |
|||||||||||||||||||||
UTC Kakao-SK Telecom ESG Fund |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) |
( |
) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Dividends received from the associates are deducted from the carrying amount for the year ended December 31, 2021. |
(*2) | Investment in SK Telecom CS T1 Co., Ltd. and twenty- other associates and joint ventures were transferred to the three spin-off company for the year ended December 31, 2021. In addition, profit or loss related to investments in associates and joint ventures, which are transferred to the spin-off company, are included in profit or loss from discontinued operations. |
(*3) | The Group recognized ₩ |
(*4) | The Parent Company has entered into an agreement whereby the entire shares of Carrot General Insurance Co., Ltd. will transfer to T map Mobility Co., Ltd. In accordance with the agreement, the Parent Company reclassified the investments in Carrot General Insurance Co., Ltd. amounting to ₩ ₩ |
(*5) | The acquisition for the year ended December 31, 2021 includes ₩ ₩ ₩ ₩ ₩ ₩ |
2020 |
||||||||||||||||||||||||||||
(In millions of won) |
Beginning balance |
Acquisition and Disposal |
Share of profits (losses) |
Other compre- hensive income (loss) |
Other increase (decrease) |
Business Combina- tion |
Ending balance |
|||||||||||||||||||||
Investments in associates: |
||||||||||||||||||||||||||||
SK China Company Ltd. |
₩ |
— |
( |
) |
— |
— |
||||||||||||||||||||||
Korea IT Fund(*1) |
— |
( |
) |
— |
||||||||||||||||||||||||
KEB HanaCard Co., Ltd. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
SK Telecom CS T1 Co., Ltd.(*2) |
— |
( |
) |
( |
) |
— |
— |
|||||||||||||||||||||
NanoEnTek, Inc.(*2) |
— |
— |
||||||||||||||||||||||||||
UniSK(*1) |
— |
( |
) |
— |
||||||||||||||||||||||||
SK Technology Innovation Company |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
SK MENA Investment B.V. |
— |
— |
( |
) |
— |
— |
||||||||||||||||||||||
SK hynix Inc.(*1,2) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||
SK Latin America Investment S.A. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Grab Geo Holdings PTE. LTD.(*2) |
— |
( |
) |
( |
) |
— |
— |
|||||||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
( |
) |
— |
— |
||||||||||||||||||||||||
Pacific Telecom Inc.(*1) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||
S.M. Culture & Contents Co., Ltd. |
( |
) |
( |
) |
( |
) |
— |
— |
||||||||||||||||||||
Contents Wavve Co., Ltd.(*2) |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||
Hello Nature Co., Ltd.(*2,3) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||||
Digital Games International Pte. Ltd. |
— |
( |
) |
( |
) |
— |
— |
|||||||||||||||||||||
Invites Healthcare Co., Ltd. |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Nam Incheon Broadcasting Co., Ltd. |
— |
— |
— |
— |
||||||||||||||||||||||||
NANO-X IMAGING LTD.(*2,4) |
— |
( |
) |
— |
— |
|||||||||||||||||||||||
Home Choice Corp. |
— |
— |
— |
— |
||||||||||||||||||||||||
Carrot General Insurance Co., Ltd. (*5) |
( |
) |
( |
) |
— |
|||||||||||||||||||||||
12CM JAPAN and others(*2,6) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
( |
) |
( |
) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||||||||||
(In millions of won) |
Beginning balance |
Acquisition and Disposal |
Share of profits (losses) |
Other compre- hensive income (loss) |
Other increase (decrease) |
Business Combina- tion |
Ending balance |
|||||||||||||||||||||
Investments in joint ventures: |
||||||||||||||||||||||||||||
Dogus Planet, Inc.(*2) |
₩ |
— |
( |
) |
— |
— |
||||||||||||||||||||||
Finnq Co., Ltd. |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||
NEXTGEN BROADCAST SERVICES CO, LLC(*2) |
— |
( |
) |
— |
( |
) |
— |
|||||||||||||||||||||
NEXTGEN ORCHESTRATION, LLC(*2) |
— |
— |
( |
) |
— |
|||||||||||||||||||||||
Techmaker GmbH(*2) |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
( |
) |
( |
) |
( |
) |
— |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) |
( |
) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Dividends received from the associates are deducted from the carrying amount for the year ended December 31, 2020. |
(*2) | Profit and loss related to investments in associates and joint ventures, which are transferred to the spin-off company, are included in profit or loss from discontinued operations. |
(*3) | The Group recognized ₩ |
(*4) | As the Group obtained significant influence, ₩ |
(*5) | ₩ million of preferred shares of Carrot General Insurance Co., Ltd. were converted to common shares for the year ended December 31, 2020. |
(*6) | The acquisitions for the year ended December 31, 2020 include ₩ ₩ ₩ ₩ ₩ KIF-Stonebridge IT Fund and ₩ |
(In millions of won) |
Unrecognized loss |
Unrecognized change in equity |
||||||||||||||
2021 |
Cumulative loss |
2021 |
Cumulative loss |
|||||||||||||
Wave City Development Co., Ltd. |
₩ |
— | — | |||||||||||||
Daehan Kanggun BcN Co., Ltd. and others |
( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
— | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
13. |
Property and Equipment |
December 31, 2021 |
||||||||||||||||
(In millions of won) |
Acquisition cost |
Accumulated depreciation |
Accumulated impairment loss |
Carrying amount |
||||||||||||
Land |
₩ |
— | — | |||||||||||||
Buildings |
( |
) | ( |
) | ||||||||||||
Structures |
( |
) | ( |
) | ||||||||||||
Machinery |
( |
) | ( |
) | ||||||||||||
Other |
( |
) | ( |
) | ||||||||||||
Right-of-use |
( |
) | ( |
) | ||||||||||||
Construction in progress |
— | — | ||||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||
December 31, 2020 |
||||||||||||||||
(In millions of won) |
Acquisition cost |
Accumulated depreciation |
Accumulated impairment loss |
Carrying amount |
||||||||||||
Land |
₩ |
— | — | |||||||||||||
Buildings |
( |
) | ( |
) | ||||||||||||
Structures |
( |
) | ( |
) | ||||||||||||
Machinery |
( |
) | ( |
) | ||||||||||||
Other |
( |
) | ( |
) | ||||||||||||
Right-of-use |
( |
) | — | |||||||||||||
Construction in progress |
— | — | ||||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||
(2) | Changes in property and equipment for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Disposal |
Transfer |
Deprecia- tion(*1) |
Impairment(*2) |
Business combina- tion(*3) |
Spin-off |
Ending balance |
||||||||||||||||||||||||||||
Land |
₩ |
( |
) | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Buildings |
( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||
Structures |
( |
) | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||
Machinery |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Right-of-use |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Construction in progress |
( |
) | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
(*1) | Includes amounts related to discontinued operations. |
(*2) | The Group recognized impairment losses for obsolete assets for the year ended December 31, 2021. |
(*3) | Includes assets from the acquisition of YLP Inc. and another company by T map Mobility Co., Ltd. and from the acquisition of Rokmedia Co., Ltd. by One Store Co., Ltd. |
(In millions of won) |
||||||||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Disposal |
Transfer |
Deprecia- tion(*1) |
Impairment(*2) |
Business combina- tion(*3) |
Ending balance |
|||||||||||||||||||||||||
Land |
₩ |
( |
) | — | — | |||||||||||||||||||||||||||
Buildings |
( |
) | ( |
) | — | |||||||||||||||||||||||||||
Structures |
( |
) | ( |
) | — | |||||||||||||||||||||||||||
Machinery |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||||||
Right-of-use |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Construction in progress |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
(*1) | Includes amounts related to discontinued operations. |
(*2) | The Group recognized impairment losses for obsolete assets for the year ended December 31, 2020. |
(*3) | Includes assets from the acquisition of Broadband Nowon Co., Ltd. and from the merger of Tbroad Co., Ltd. and two other companies by SK Broadband Co., Ltd., a subsidiary of the Parent Company. |
14. |
Investment Property |
(1) | Investment property as of December 31, 2021 is as follows: |
(In millions of won) |
||||||||||||
December 31, 2021 |
||||||||||||
Acquisition cost |
Accumulated depreciation |
Carrying amount |
||||||||||
Land |
₩ |
— | ||||||||||
Buildings |
( |
) | ||||||||||
Right-of-use |
( |
) | ||||||||||
₩ |
( |
) | ||||||||||
(2) | Changes in Investment property for the year ended December 31, 2021 are as follows: |
(In millions of won) |
||||
2021 |
||||
Beginning balance |
₩ |
— | ||
Transfer |
||||
Ending balance |
₩ |
|||
(3) | The Group recognized lease income of ₩ |
(4) | The fair value of investment property is ₩ |
15. |
Lease |
(1) | As a lessee |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Land, buildings and structures |
₩ |
|||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(In millions of won) |
2021 |
2020 |
2019 |
|||||||||
Depreciation of right-of-use |
||||||||||||
Land, buildings and structures |
₩ |
|
|
|
| |||||||
Others |
|
|
|
| ||||||||
|
|
|
|
|
|
|
| |||||
₩ |
|
|
|
| ||||||||
|
|
|
|
|
|
|
| |||||
Interest expense on lease liabilities(*) |
₩ |
|
|
|
| |||||||
Expenses related to short-term leases(*) |
|
|
|
| ||||||||
Expenses related to leases of low-value assets except for short-term leases(*) |
|
|
|
|
(*) | Includes amounts related to discontinued operations. |
3) | The total cash outflows due to lease payments for the years ended December 31, 2021, 2020 and 2019 amounted to ₩ , ₩ ₩ million, respectively, those amounts include cash flows from discontinued operations. |
(2) | As a lessor |
(In millions of won) |
| |||
Amount |
||||
Less than 1 year |
₩ |
|||
1 ~ 2 years |
||||
2 ~ 3 years |
||||
3 ~ 4 years |
||||
4 ~ 5 years |
||||
More than 5 years |
||||
|
|
|||
Undiscounted lease payments |
₩ |
|||
|
|
|||
Unrealized finance income |
||||
|
|
|||
Net investment in the lease |
||||
|
|
(In millions of won) |
| |||
Amount |
||||
Less than 1 year |
₩ |
|||
1 ~ 2 years |
||||
2 ~ 3 years |
||||
3 ~ 4 years |
||||
4 ~ 5 years |
||||
More than 5 years |
||||
|
|
|||
₩ |
||||
|
|
16. |
Goodwill |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Goodwill related to merger of Shinsegi Telecom, Inc. |
₩ |
|||||||
Goodwill related to acquisition of SK Broadband Co., Ltd. |
||||||||
Goodwill related to acquisition of Life & Security Holdings Co., Ltd.(*) |
||||||||
Other goodwill(*) |
||||||||
|
|
|
|
|||||
₩ |
|
|||||||
|
|
|
|
(*) | Transferred to the spin-off company for the year ended December 31, 2021. |
• | goodwill related to Shinsegi Telecom, Inc.(*1): Cellular services; |
• | goodwill related to SK Broadband Co., Ltd.(*2): Fixed-line telecommunication services; and |
• | other goodwill: Others. |
(*1) | Goodwill related to merger of Shinsegi Telecom, Inc. |
(*2) | Goodwill related to acquisition of SK Broadband Co., Ltd. |
(3) | Details of the changes in goodwill for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
2021 |
2020 |
|||||||
Beginning balance |
₩ |
|||||||
Acquisition(*) |
||||||||
Impairment loss |
( |
|||||||
Other |
( |
) | ( |
) | ||||
Spin-off |
( |
) | — | |||||
|
|
|
|
|||||
Ending balance |
₩ |
|||||||
|
|
|
|
(*) | It consists of goodwill recognized as T map Mobility Co., Ltd.’s acquisition of YLP Inc. and another company, goodwill recognized as DREAMUS COMPANY’s acquisition of Studio Dolphin Co., Ltd. and goodwill recognized from One Store Co., Ltd.’s acquisition of Rokmedia Co., Ltd. for the year ended December 31, 2021. (See Note 11) |
17. |
Intangible Assets |
(1) | Intangible assets as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
December 31, 2021 |
|||||||||||||||
Acquisition cost |
Accumulated amortization |
Accumulated impairment |
Carrying amount |
|||||||||||||
Frequency usage rights(*1) |
₩ |
( |
) | ( |
) | |||||||||||
Land usage rights |
( |
) | — | |||||||||||||
Industrial rights |
( |
) | ( |
) | ||||||||||||
Development costs |
( |
) | ||||||||||||||
Facility usage rights |
( |
) | — | |||||||||||||
Customer relations |
( |
) | — | |||||||||||||
Club memberships(*2) |
— | ( |
) | |||||||||||||
Brands(*2) |
— | — | ||||||||||||||
Other(*3) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
(In millions of won) |
December 31, 2020 |
|||||||||||||||
Acquisition cost |
Accumulated amortization |
Accumulated impairment |
Carrying amount |
|||||||||||||
Frequency usage rights(*1) |
₩ |
( |
) | ( |
) | |||||||||||
Land usage rights |
( |
) | — | |||||||||||||
Industrial rights |
( |
) | ( |
) | ||||||||||||
Development costs |
( |
) | ( |
) | ||||||||||||
Facility usage rights |
( |
) | — | |||||||||||||
Customer relations |
( |
) | — | |||||||||||||
Club memberships(*2) |
— | ( |
) | |||||||||||||
Brands(*2) |
— | — | ||||||||||||||
Other(*3) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
|
( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
(*1) | The Group was reassigned 800 MHz, 1.8 GHz and 2.1 GHz band of frequency license s from the Ministry of Science and Information and Communication Technology (“ICT”) in exchange for ₩ ₩ ₩ ₩ ₩ |
(*2) | Club memberships and Brands are classified as intangible assets with indefinite useful lives and are not amortized. |
(*3) | Other intangible assets primarily consist of computer software and others. |
(2) | C hanges in intangible assets for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Disposal |
Transfer |
Amorti- zation (*1) |
Reversal (Impairment) (*2) |
Business Combina- tion(*3) |
Spin-off |
Ending balance |
||||||||||||||||||||||||||||
Frequency usage rights |
₩ |
— | — | ( |
) | — | — | |||||||||||||||||||||||||||||
Land usage rights |
( |
) | — | ( |
) | — | — | — | ||||||||||||||||||||||||||||
Industrial rights |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
Development costs |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Facility usage rights |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||||||
Customer relations |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Club memberships |
( |
) | — | — | — | ( |
) | |||||||||||||||||||||||||||||
Brands |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
₩ |
|
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes amounts related to discontinued operations. |
(*2) | The Group recognized the difference between recoverable amount and the carrying amount of intangible assets amounting to ₩ ₩ |
(*3) | Includes assets from the acquisition of YLP Co., Ltd. and another company by T map Mobility Co., Ltd., and Rokmedia Co., Ltd. by One Store Co., Ltd. |
(In millions of won) |
||||||||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Disposal |
Transfer |
Amortization (*1) |
Impairment (*1,2) |
Business Combination(*3) |
Ending balance |
|||||||||||||||||||||||||
Frequency usage rights |
₩ |
— | — | — | ( |
) | ( |
) | — | |||||||||||||||||||||||
Land usage rights |
( |
) | — | ( |
) | — | — | |||||||||||||||||||||||||
Industrial rights |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||||||
Development costs |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||||||
Facility usage rights |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||
Customer relations |
( |
) | ( |
) | — | |||||||||||||||||||||||||||
Club memberships |
( |
) | — | ( |
) | |||||||||||||||||||||||||||
Brands(*4) |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes amounts related to discontinued operations. |
(*2) | The Group recognized the difference between recoverable amount and the carrying amount of intangible assets amounting to ₩ |
(*3) | Includes assets from the acquisition of Broadband Nowon Co., Ltd. and from the merger of Tbroad Co., Ltd. and two other companies by SK Broadband Co., Ltd., a subsidiary of the Parent Company. |
(*4) | Brands are recognized in connection with the acquisition of Life & Security Holdings Co., Ltd. |
(3) | Research and development expenditures recognized as expense for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Research and development costs expensed as incurred(*) |
₩ |
(*) |
Includes amounts related to discontinued operations. |
(4) | Details of frequency usage rights as of December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||||||
Amount |
Description |
Commencement of amortization |
Completion of amortization |
|||||||||||||
800MHz license |
₩ |
l. 2021 | . 2026 | |||||||||||||
1.8GHz license |
. 2021 | . 2026 | ||||||||||||||
2.6GHz license |
t. 2016 | . 2026 | ||||||||||||||
2.1GHz license |
. 2021 | . 2026 | ||||||||||||||
3.5GHz license |
. 2019 | . 2028 | ||||||||||||||
28GHz license |
. 2021 | . 2023 | ||||||||||||||
|
|
|||||||||||||||
₩ |
||||||||||||||||
|
|
18. |
Borrowings and Debentures |
(1) | Short-term borrowings as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||
Lender |
Annual interest rate (%) |
December 31, 2021 |
December 31, 2020 |
|||||||||
Short-term borrowings |
Citibank | ₩ |
— | |||||||||
KEB Hana Bank(*1,3) | — | |||||||||||
KEB Hana Bank(*2,3) | 6M financial I |
— | ||||||||||
Shinhan Bank(*2,3) | 6M financial I |
— | ||||||||||
Hana Financial Investment Co., Ltd. | ||||||||||||
DB Financial Investment Co., Ltd. | ||||||||||||
Shinhan Financial Investment Co., Ltd. | ||||||||||||
|
|
|
|
|||||||||
₩ |
||||||||||||
|
|
|
|
(*1) | 1M FTP rate is |
(*2) | 6M financial I (bank) rate is |
(*3) | Transferred to the spin-off company for the year ended December 31, 2021. |
(In millions of won and thousands of other currencies) |
||||||||||||||||
Lender |
Annual interest rate (%) |
Maturity |
December 31, 2021 |
December 31, 2020 |
||||||||||||
Korea Development Bank(*1) |
₩ |
— | ||||||||||||||
Korea Development Bank(*1,2) |
||||||||||||||||
Korea Development Bank(*3) |
— | |||||||||||||||
Credit Agricole CIB(*1,4) |
||||||||||||||||
Export Kreditnamnden(*5) |
(USD |
|
(USD |
| ||||||||||||
Shinhan Bank and others(*6) |
— | |||||||||||||||
UBS(*6) |
2025 |
|
— | (CHF |
| |||||||||||
FAE(*6) |
— | (CHF |
) | |||||||||||||
Mizuho bank, Ltd. |
— | |||||||||||||||
DBS bank Ltd. |
— | |||||||||||||||
|
|
|
|
|||||||||||||
Less present value discount |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|||||||||||||
Less current installments |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||
|
|
|
|
(*1) | 3M CD rate are |
(*2) | The long-term borrowings are to be repaid by installments on an annual basis from 2018 to 2022. |
(*3) | The long-term borrowings are to be repaid by installments on an annual basis from 2022 to 2026. |
(*4) | The long-term borrowings are to be repaid by installments on an annual basis from 2020 to 2023. |
(*5) | The long-term borrowings are to be repaid by installments on an annual basis from 2014 to 2022. |
(*6) | Transferred to the spin-off company for the year ended December 31, 2021. |
(3) | Debentures as of December 31, 2021 and 2020 are as follows: |
(In millions of won and thousands of U.S. dollars) |
||||||||||||||||||
Purpose |
Maturity |
Annual interest rate (%) |
December 31, 2021 |
December 31, 2020 |
||||||||||||||
Unsecured corporate bonds |
Operating fund | ₩ |
— | |||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Refinancing fund | — | ||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds |
(In millions of won and thousands of U.S. dollars) |
||||||||||||||||||
Purpose |
Maturity |
Annual interest rate (%) |
December 31, 2021 |
December 31, 2020 |
||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating fund | — | ||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
— | ||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds |
Operating fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
(In millions of won and thousands of U.S. dollars) |
||||||||||||||||||
Purpose |
Maturity |
Annual interest rate (%) |
December 31, 2021 |
December 31, 2020 |
||||||||||||||
Unsecured corporate bonds |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
||||||||||||||||||
Unsecured corporate bonds |
Refinancing fund | — | ||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
Refinancing fund | — | ||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds |
— | |||||||||||||||||
Unsecured corporate bonds(*1) |
Operating and refinancing fund |
— | ||||||||||||||||
Unsecured corporate bonds(*1) |
Operating fund | |||||||||||||||||
Unsecured corporate bonds(*1) |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds(*1) |
— | |||||||||||||||||
Unsecured corporate bonds(*1) |
||||||||||||||||||
Unsecured corporate bonds(*1) |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds(*1) |
||||||||||||||||||
Unsecured corporate bonds(*1) |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds(*1) |
||||||||||||||||||
Unsecured corporate bonds(*1) |
||||||||||||||||||
Unsecured corporate bonds(*1) |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds(*1) |
Operating and refinancing fund |
|||||||||||||||||
Unsecured corporate bonds(*1) |
Refinancing fund | |||||||||||||||||
Unsecured corporate bonds(*1) |
Refinancing fund | — | ||||||||||||||||
Private placement corporate bonds(*2) |
Operating fund | — | — | |||||||||||||||
Private placement corporate bonds(*2) |
Operating fund | — | — | |||||||||||||||
Private placement corporate bonds(*2) |
Operating fund | — | — | |||||||||||||||
Private placement corporate bonds(*2) |
Operating fund | — | — |
(In millions of won and thousands of U.S. dollars) |
||||||||||||||||||
Purpose |
Maturity |
Annual interest rate (%) |
December 31, 2021 |
December 31, 2020 |
||||||||||||||
Unsecured global bonds |
Operating fund | (USD |
) |
(USD |
) | |||||||||||||
Unsecured global bonds |
(USD |
) |
(USD |
) | ||||||||||||||
Unsecured global bonds(*1) |
Refinancing fund | (USD |
) |
(USD |
) | |||||||||||||
Floating rate notes(*3) |
Operating fund | + |
R |
(USD |
) |
(USD |
) | |||||||||||
|
|
|
|
|||||||||||||||
Less discounts on bonds |
( |
) | ( |
) | ||||||||||||||
|
|
|
|
|||||||||||||||
Less current installments of bonds |
( |
) | ( |
) | ||||||||||||||
|
|
|
|
|||||||||||||||
₩ |
||||||||||||||||||
|
|
|
|
(*1) | Unsecured corporate bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company. |
(*2) | Transferred to the spin-off company for the year ended December 31, 2021. |
(*3) | 3M LIBOR rates are |
19. |
Long-term Payables — other |
(1) | Long-term payables — other as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Payables related to acquisition of frequency usage rights |
₩ |
|||||||
Other |
— | |||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(2) | As of December 31, 2021 and 2020, details of long-term payables — other which consist of payables related to the acquisition of frequency usage rights are as follows (See Note 17): |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Long-term payables — other |
₩ |
|||||||
Present value discount on long-term payables — other |
( |
) | ( |
) | ||||
Current installments of long-term payables — other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Carrying amount at December 31 |
₩ |
|||||||
|
|
|
|
(3) | The principal amounts of the long-term payables — other repaid for the year ended December 31, 2021 and 2020 are ₩ |
(In millions of won) |
||||
Amount |
||||
Less than 1 year |
₩ |
|||
1~3 years |
||||
3~5 years |
||||
More than 5 years |
||||
|
|
|||
₩ |
||||
|
|
20. |
Provisions |
(In millions of won) |
||||||||||||||||||||||||||||||||||||||||
2021 |
As of December 31, 2021 |
|||||||||||||||||||||||||||||||||||||||
Beginning balance |
Increase |
Utilization |
Reversal |
Other |
Business Combination |
Spin-off |
Ending balance |
Current |
Non-current |
|||||||||||||||||||||||||||||||
Provision for restoration |
₩ |
( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||
Emission allowance |
( |
) | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||||||
Other provisions |
( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
||||||||||||||||||||||||||||||||||||
2020 |
As of December 31, 2020 |
|||||||||||||||||||||||||||||||||||
Beginning balance |
Increase |
Utilization |
Reversal |
Other |
Business Combination |
Ending balance |
Current |
Non-current |
||||||||||||||||||||||||||||
Provision for restoration |
₩ |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Emission allowance |
— | ( |
) | — | — | — | ||||||||||||||||||||||||||||||
Other provisions(*) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) | ₩ |
21. |
Defined Benefit Liabilities (Assets) |
(1) | Details of defined benefit liabilities (assets) as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Present value of defined benefit obligations |
₩ |
|||||||
Fair value of plan assets |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Defined benefit assets(*) |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Defined benefit liabilities |
||||||||
|
|
|
|
(*) | Since the Group entities neither have legally enforceable right nor intention to settle the defined benefit obligations of Group entities with defined benefit assets of other Group entities, defined benefit assets of Group entities have been separately presented from defined benefit liabilities. |
(2) | Principal actuarial assumptions as of December 31, 2021 and 2020 are as follows: |
December 31, 2021 |
December 31, 2020 |
|||||||
Discount rate for defined benefit obligations |
||||||||
Expected rate of salary increase |
(3) | Changes in defined benefit obligations for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
For the year ended December 31 |
|||||||
2021 |
2020 |
|||||||
Beginning balance |
₩ |
|||||||
Current service cost(*1) |
||||||||
Past service cost |
— | |||||||
Interest cost(*1) |
||||||||
Remeasurement - Demographic assumption |
( |
) | ||||||
- Financial assumption |
( |
) | ( |
) | ||||
- Adjustment based on experience |
||||||||
Business combinations |
— | |||||||
Benefit paid |
( |
) | ( |
) | ||||
Spin-off |
( |
) | — | |||||
Others(*2) |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Ending balance |
₩ |
|||||||
|
|
|
|
(*1) |
Includes amounts related to discontinued operations. |
(*2) | Others include changes of liabilities due to employee’s transfers among affiliates for the years ended December 31, 2021 and 2020. |
(4) | Changes in plan assets for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
For the year ended December 31 |
|||||||
2021 |
2020 |
|||||||
Beginning balance |
₩ |
|||||||
Interest income(*) |
||||||||
Remeasurement |
( |
) | ( |
) | ||||
Contributions |
||||||||
Benefit paid |
( |
) | ( |
) | ||||
Business combinations |
||||||||
Spin-off |
( |
) | ||||||
Others |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Ending balance |
₩ |
|||||||
|
|
|
|
(*) |
Includes amounts related to discontinued operations. |
(5) | Total cost of benefit plan, which is recognized in profit and loss (included in labor in the statement of income) and capitalized into construction-in-progress, |
(In millions of won) |
For the year ended December 31 |
|||||||
2021 |
2020 |
|||||||
Current service cost(*) |
₩ |
|||||||
Past service cost |
||||||||
Net interest cost(*) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(*) |
Includes amounts related to discontinued operations. |
(6) | Details of plan assets as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Equity instruments |
₩ |
|||||||
Debt instruments |
||||||||
Short-term financial instruments, etc. |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(7) | As of December 31, 2021, 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 |
₩ |
( |
||||||
Expected salary increase rate |
( |
) |
22. |
Derivative Instruments |
(1) | Currency and interest rate swap contracts under cash flow hedge accounting as of December 31, 2021 are as follows: |
(In millions of won and thousands of U.S. dollars) | ||||||||
Borrowing date |
Hedging Instrument (Hedged item) |
Hedged risk |
Financial institution |
Duration of contract | ||||
Fixed-to-fixed face value of USD |
Jul. 20, 2027 | |||||||
Fixed-to-fixed (U.S. dollar borrowing amounting to USD |
||||||||
|
Fixed-to-fixed (U.S. dollar denominated bonds face value of USD |
|||||||
Floating-to-fixed (U.S. dollar-denominated bonds face value of USD |
| |||||||
|
Fixed-to-fixed (U.S. dollar denominated bonds face value of USD |
|||||||
Floating-to-fixed (Korean won borrowing amounting to KRW |
| |||||||
Floating-to-fixed (Korean won borrowing amounting to KRW |
|
(2) | SK Broadband Co., Ltd., a subsidiary of the Parent Company, entered into Total Return Swap(TRS) contract amounting to ₩ ₩ s consist of the settlement of the difference resulting from the change in the value of the real estate on the maturity date of the contract and the settlement of the difference between the dividend and the standard dividend during the contract period. Each contract expires in November 2022 and September 2024, respectively. SK Broadband Co., Ltd. has an obligation to guarantee fixed rate of returns to the other party to each contract. SK Broadband Co., Ltd. recognized derivative financial assets of ₩ ₩ |
(3) | In relation to the business acquisition by SK Broadband Co., Ltd. for the year ended December 31, 2020 the Parent Company has entered into a shareholders’ agreement with the shareholders of the acquirees. Pursuant to the agreement, when certain conditions are met within a period of time subsequent to the merger, the shareholders of the acquirees can exercise their drag-along rights and require the Parent Company to sell its shares in SK Broadband Co., Ltd. Should the shareholders exercise their drag-along rights, the Parent Company also can exercise its call options over the shares held by those shareholders. The Group recognized a derivative financial liability of ₩ million ( ₩ |
Significant unobservable inputs |
Correlations between inputs and fair value measurements | |
Fair value of SK Broadband Co., Ltd.’s common stock | The estimated fair value of derivative liabilities would decrease (increase) if the fair value of common stock would increase (decrease) | |
Volatility of stock price | The estimated fair value of derivative liabilities would decrease (increase) if the volatility of stock price increase (decrease) |
(4) | The Group has entered into the agreement with Newberry Global Limited, whereby the Group has been granted subscription right and contingent subscription right to acquire Newberry series-C redeemable convertible preferred stock for the year ended December 31, 2020. The Group recognized derivative financial assets of ₩ ₩ |
(5) | The fair value of derivative financial instruments to which the Group applies cash flow hedge is recorded in the financial statements as derivative financial assets, long-term derivative financial assets, derivative financial liabilities and long-term derivative financial liabilities. |
(In millions of won and thousands of U.S. dollars) |
||||||||
Hedging instrument (Hedged item) |
Cash flow hedge |
Fair value |
||||||
Current assets: |
||||||||
Fixed-to-fixed |
₩ |
|||||||
Non-current assets: |
||||||||
Fixed-to-fixed |
₩ |
|||||||
Fixed-to-fixed |
||||||||
Fixed-to-fixed |
||||||||
Floating-to-fixed cross currency interest rate swap (U.S dollar denominated bonds face value of USD |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Current liabilities: |
||||||||
Floating-to-fixed |
₩ |
( |
( |
|||||
Non-current liabilities: |
||||||||
Floating-to-fixed |
₩ |
( |
( |
|||||
|
|
|
|
|||||
₩ |
( |
) | ( |
) | ||||
|
|
|
|
(6) | The fair value of derivatives held for trading is recorded in the financial statements as derivative financial assets, long-term derivative financial assets and long-term derivative financial liabilities. |
(In millions of won) |
||||||||
|
Held for trading |
Fair value |
||||||
Current assets: |
||||||||
Contingent subscription right |
₩ |
|||||||
Subscription right |
||||||||
Total return swap |
||||||||
Non-current assets: |
||||||||
Total return swap |
₩ |
|||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Non-current liabilities: |
||||||||
Share option |
₩ |
( |
( |
) |
23. |
Share Capital and Capital Surplus and Others |
(1) | Details of share capital as of December 31, 2021 and 2020 are as follows: |
(In millions of won, except for share data) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Number of authorized shares(*1) |
||||||||
Par value (in won)(*1) |
||||||||
Number of issued shares |
||||||||
Share capital: |
||||||||
Common share(*2) |
₩ |
(*1) | As a result of stock split and spin-off, the number of shares that the Parent Company is allowed to be issue under article of incorporation has changed from ₩ ₩ |
(*2) | The Parent Company’s share capital decreased by ₩ spin-off for the year ended December 31, 2021. In addition, the Parent Company retired |
(2) | Changes in issued shares for the years ended December 31, 2021 and 2020 are as follows: |
(In shares) |
||||||||
2021 |
2020 |
|||||||
Issued shares at January 1 |
||||||||
Retirement of treasury shares(*1) |
( |
) | ||||||
Stock split(*2) |
||||||||
Spin-off(*3) |
( |
) | ||||||
Issued shares at December 31 |
||||||||
(*1) | The Parent Company retired |
(*2) | The stock split of the Parent Company’s common share was approved at the shareholders’ meeting held on October 12, 2021. The stock split was effective from October 28, 2021. The par value of issued shares has changed from ₩ ₩ |
(*3) | The allocation of new shares to shareholders of the spin-off company is based on the number of shares at par value of ₩ |
Surviving Company |
Spin-off Company |
|||||||
Company name | ., Ltd. | ., Ltd. | ||||||
Common shares (in shares) |
(3) | Details of shares outstanding as of December 31, 2021 and 2020 are as follows: |
(In shares) |
2021 |
2020 |
||||||||||||||||||||||
Issued shares |
Treasury shares |
Outstanding shares |
Issued shares |
Treasury shares |
Outstanding shares |
|||||||||||||||||||
Shares outstanding |
(4) | Details of capital surplus and others as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Paid-in surplus |
₩ |
|||||||
Treasury shares(Note 24) |
( |
) | ( |
) | ||||
Hybrid bonds(Note 25) |
||||||||
Share option(Note 26) |
||||||||
Others(*) |
( |
) | ( |
) | ||||
₩ |
( |
) | ||||||
24. |
Treasury Shares |
(1) | Treasury shares as of December 31, 2021 and 2020 are as follows: |
(In millions of won, except for share data) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Number of shares |
||||||||
Acquisition cost |
₩ |
(2) | Changes in treasury shares for the years ended December 31, 2021 and 2020 are as follows: |
(In shares) |
||||||||
2021 |
2020 |
|||||||
Treasury shares at January 1 |
||||||||
Acquisition(*1) |
||||||||
Disposal(*2) |
( |
) | ||||||
Retirement of treasury shares(*3) |
( |
) | ||||||
Stock split(*4) |
||||||||
Spin-off(*5) |
( |
) | ||||||
Disposal(*6) |
( |
) | ||||||
Treasury shares at December 31 |
||||||||
(*1) | The Parent Company acquired ₩ ₩ |
(*2) | The Parent Company distributed ₩ spin-off, resulting in gain on disposal of treasury shares of ₩ ₩ ₩ non-executive directors, resulting in gain on disposal of treasury shares of ₩ |
(*3) | The Parent Company retired P Company’s issued shares have decreased without change in share capital for the year ended December 31, 2021. a rent |
(*4) | The stock split of the Parent Company’s common stock was approved at the shareholders’ meeting held on October 12, 2021, to increase the number of its outstanding shares, effective from October 28, 2021. |
(*5) | spin-off company, due to spin-off. Meanwhile. the Parent Company acquired ₩ spin-off. |
(*6) | The Parent Company distributed ₩ spin-off to the employee, resulting in loss on disposal of treasury shares of ₩ |
25. |
Hybrid Bonds |
(In millions of won) |
||||||||||||||||||
Type |
Issuance date |
Maturity(*1) |
Annual interest rate(%)(*2) |
December 31, 2021 |
December 31, 2020 |
|||||||||||||
Series 2-1 hybrid bonds |
₩ |
|||||||||||||||||
Series 2-2 hybrid bonds |
||||||||||||||||||
Issuance costs |
( |
) | ( |
) | ||||||||||||||
₩ |
||||||||||||||||||
(*1) | The Parent Company has a right to extend the maturity without any notice or announcement. |
(*2) | Annual interest rate is determined as yield rate of 5-year national bond plus premium. According to the step-up clause, additional premium of |
26. |
Share based payment arrangement |
(1) | The terms and conditions related to the grants of the share based payment arrangement are as follows: |
Parent Company | ||||||||||||||||
1-1 |
1-2 |
1-3 |
2 |
3 |
4 |
5(*2) |
6(*2) | |||||||||
Grant date |
2018 |
2019 |
2019 |
|||||||||||||
Types of shares to be issued |
||||||||||||||||
Grant method |
||||||||||||||||
Number of shares (in shares)(*1) |
||||||||||||||||
Exercise price (in won)(*1) |
||||||||||||||||
Exercise period |
Mar. 24, 2022 |
Mar. 24, 2023 |
Mar. 24, 2024 |
Feb. 20, 2023 |
Feb. 22, 2024 |
Mar. 26, 2024 |
Mar. 26, 2027 |
Mar. 25, 2026 | ||||||||
Vesting conditions |
service from the grant date |
service from the grant date |
from the grant date |
service from the grant date |
service from the grant date |
service from the grant date |
service from the grant date |
service from the grant date |
Share appreciation rights of SK Telecom Co., Ltd.(*3) |
Share appreciation rights of SK Square Co., Ltd.(*3) |
|||||||
Grant date |
||||||||
Grant method |
||||||||
Number of shares (in shares)(*1) |
||||||||
Exercise price (in won)(*1) |
||||||||
Exercise period |
||||||||
Vesting conditions |
(*1) | Number of shares granted and exercise price are adjusted as a result of stock split and spin-off for the year ended December 31, 2021. |
(*2) | Parts of the grant that have not met the vesting conditions have been forfeited for the year ended December 31, 2021. |
(*3) | The Parent Company newly established the long-term incentive policy as part of the compensation related to the growth of corporate value on the beginning of the year, and granted cash settled share appreciation rights to executives. |
(2) | Share compensation expense recognized for the year ended December 31, 2021 and the remaining share compensation expense to be recognized in subsequent periods are as follows: |
(In millions of won) |
Share compensation expense |
|||
As of December 31, 2020 |
₩ |
|||
For the year ended December 31, 2021(*) |
||||
In subsequent periods |
||||
|
|
|||
₩ |
||||
|
|
(*) |
Includes amounts related to discontinued operations. |
(3) | The Parent Company used binomial option pricing model in the measurement of the fair value of the share options at grant date and the inputs used in the model are as follows: |
(In won) |
Parent Company |
|||||||||||||||||||||||||||||||
1-1 |
1-2 |
1-3 |
2 |
3 |
4 |
5 |
6 |
|||||||||||||||||||||||||
Risk-free interest rate |
% | % | % | % | % | % | % | % | ||||||||||||||||||||||||
Estimated option’s life |
||||||||||||||||||||||||||||||||
Share price (Closing price on the preceding day)(*) |
||||||||||||||||||||||||||||||||
Expected volatility |
% | % | % | % | % | % | % | % | ||||||||||||||||||||||||
Expected dividends |
% | % | % | % | % | % | % | % | ||||||||||||||||||||||||
Exercise price(*) |
||||||||||||||||||||||||||||||||
Per-share fair value of the option(*) |
(In won) |
||||||||
Share appreciation rights of SK Telecom Co., Ltd. |
Share appreciation rights of SK Square Co., Ltd. |
|||||||
Risk-free interest rate |
% | % | ||||||
Estimated option’s life |
||||||||
Share price on the remeasurement date |
||||||||
Expected volatility |
% | % | ||||||
Expected dividends |
% | % | ||||||
Exercise price(*) |
||||||||
Per-share fair value of the option |
(*) | Share price (closing price on the preceding day), exercise price and per-share fair value of the option are adjusted as a result of stock split and spin-off for the year ended December 31, 2021. |
27. |
Retained Earnings |
(1) | Retained earnings as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
December 31, 2021 |
December 31, 2020 |
||||||
Appropriated: |
||||||||
Legal reserve |
₩ |
|
||||||
Reserve for business expansion |
||||||||
Reserve for technology development |
||||||||
|
|
|
|
|||||
Unappropriated |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(2) | Legal reserve |
28. |
Reserves |
(1) | Details of reserves, net of taxes, as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
December 31, 2021 |
December 31, 2020 |
||||||
Valuation gain on FVOCI |
₩ |
|
||||||
Other comprehensive gain (loss) of investments in associates and joint ventures |
( |
) | ||||||
Valuation gain on derivatives |
||||||||
Foreign currency translation differences for foreign operations |
( |
) | ||||||
|
|
|
|
|||||
₩ |
|
|||||||
|
|
|
|
(2) | Changes in reserves for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||
Valuation gain (loss) on financial assets at FVOCI |
Other comprehensive income(loss) of investments in associates and joint ventures |
Valuation gain (loss) on derivatives |
Foreign currency translation differences for foreign operations |
Total |
||||||||||||||||
Balance at January 1, 2020 |
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Changes, net of taxes |
( |
) | ( |
) | ||||||||||||||||
Balance at December 31, 2020 |
₩ |
( |
) | ( |
) | |||||||||||||||
Changes, net of taxes |
||||||||||||||||||||
Balance at December 31, 2021 |
₩ |
|||||||||||||||||||
(3) | Changes in valuation gain (loss) on financial assets at FVOCI for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
2021 |
2020 |
|||||||
Balance at January 1 |
₩ |
( |
) | |||||
Amount recognized as other comprehensive income for the year, net of taxes |
||||||||
Amount reclassified to retained earnings, net of taxes |
( |
) | ( |
) | ||||
Changes from spin-off, net of taxes |
( |
) | ||||||
Balance at December 31 |
₩ |
|||||||
(4) | Changes in valuation gain (loss) on derivatives for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
2021 |
2020 |
|||||||
Balance at January 1 |
₩ |
|
( |
) | ||||
Amount recognized as other comprehensive income for the year, net of taxes |
|
|
||||||
Amount reclassified to profit, net of taxes |
||||||||
Balance at December 31 |
₩ |
|||||||
29. |
Other Operating Income and Expenses |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Other Operating Income: |
||||||||||||
Gain on disposal of property and equipment and intangible assets |
₩ |
|||||||||||
Others(*) |
||||||||||||
₩ |
||||||||||||
Other Operating Expenses: |
||||||||||||
Communication |
₩ |
|||||||||||
Utilities |
||||||||||||
Taxes and dues |
||||||||||||
Repair |
||||||||||||
Research and development |
||||||||||||
Training |
||||||||||||
Bad debt for accounts receivable — trade |
||||||||||||
Travel |
||||||||||||
Supplies and other |
||||||||||||
Loss on disposal of property and equipment and intangible assets |
||||||||||||
Impairment loss on property and equipment and intangible assets |
||||||||||||
Donations |
||||||||||||
Bad debt for accounts receivable — other |
||||||||||||
Others(*) |
||||||||||||
₩ |
||||||||||||
(*) | See note 4 (2). |
30. |
Finance Income and Costs |
(1) | Details of finance income and costs for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Finance Income: |
||||||||||||
Interest income |
₩ |
|||||||||||
Gain on sale of accounts receivable — other |
||||||||||||
Dividends |
||||||||||||
Gain on foreign currency transactions |
||||||||||||
Gain on foreign currency translations |
||||||||||||
Gain relating to financial instruments at FVTPL |
||||||||||||
₩ |
||||||||||||
Finance Costs: |
||||||||||||
Interest expense |
₩ |
|||||||||||
Loss on sale of accounts receivable — other |
||||||||||||
Loss on foreign currency transactions |
||||||||||||
Loss on foreign currency translations |
||||||||||||
Loss on disposal of long-term investment securities |
||||||||||||
Loss relating to financial instruments at FVTPL |
||||||||||||
₩ |
|
|
|
|||||||||
(2) | Details of interest income included in finance income for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
2021 |
2020 |
2019 |
|||||||||
Interest income on cash equivalents and financial instruments(*) |
₩ |
|
|
|||||||||
Interest income on loans and others(*) |
||||||||||||
₩ |
|
|
|
|||||||||
(*) |
Includes amounts related to discontinued operations. |
(3) | Details of interest expenses included in finance costs for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
2021 |
2020 |
2019 |
|||||||||
Interest expense on borrowings(*) |
₩ |
|||||||||||
Interest expense on debentures(*) |
||||||||||||
Others(*) |
||||||||||||
₩ |
|
|
|
|||||||||
(*) |
Includes amounts related to discontinued operations. |
(4) | Finance income and costs by category of financial instruments for the years ended December 31, 2021, 2020 and 2019 are as follows. Bad debt expense (reversal of loss allowance) for accounts receivable — trade, loans and receivables are presented and explained separately in notes 6 and 3 5 . |
(In millions of won) |
||||||||
2021 |
||||||||
Finance income(*) |
Finance costs(*) |
|||||||
Financial Assets: |
||||||||
Financial assets at FVTPL |
₩ |
|||||||
Financial assets at FVOCI |
||||||||
Financial assets at amortized cost |
||||||||
Derivatives designated as hedging instrument |
||||||||
Financial Liabilities: |
||||||||
Financial liabilities at FVTPL |
||||||||
Financial liabilities at amortized cost |
||||||||
₩ |
||||||||
(*) |
Includes amounts related to discontinued operations. |
(In millions of won) |
||||||||
2020 |
||||||||
Finance income(*1) |
Finance costs(*1) |
|||||||
Financial Assets: |
||||||||
Financial assets at FVTPL(*2) |
₩ |
|||||||
Financial assets at FVOCI |
||||||||
Financial assets at amortized cost(*2) |
||||||||
Derivatives designated as hedging instrument |
— | |||||||
Financial Liabilities: |
||||||||
Financial liabilities at FVTPL |
— | |||||||
Financial liabilities at amortized cost |
||||||||
Derivatives designated as hedging instrument |
||||||||
₩ |
||||||||
(*1) |
Includes amounts related to discontinued operations. |
(*2) | The Group reclassified the category of financial assets measured at amortized cost. Accordingly, the category of financial income arising on reclassification of a financial asset is reclassified. |
(In millions of won) |
||||||||
2019 |
||||||||
Finance income(*1) |
Finance costs(*1) |
|||||||
Financial Assets: |
||||||||
Financial assets at FVTPL(*2) |
₩ |
|||||||
Financial assets at FVOCI |
— | |||||||
Financial assets at amortized cost(*2) |
||||||||
Financial Liabilities: |
||||||||
Financial liabilities at FVTPL |
||||||||
Financial liabilities at amortized cost |
||||||||
Derivatives designated as hedging instrument |
— | |||||||
₩ |
||||||||
(*1) |
Includes amounts related to discontinued operations. |
(*2) |
The Group reclassified the category of financial assets measured at amortized cost. Accordingly, the category of financial income arising on reclassification of a financial asset is reclassified. |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Financial Assets: |
||||||||||||
Financial assets at FVOCI |
₩ |
( |
) | |||||||||
Derivatives designated as hedging instrument |
||||||||||||
Financial Liabilities: |
||||||||||||
Derivatives designated as hedging instrument |
( |
) | ( |
) | ||||||||
₩ |
|
|
|
|||||||||
(5) | Details of impairment losses for financial assets for th e years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Accounts receivable — trade(*) |
₩ |
|
||||||||||
Other receivables(*) |
||||||||||||
₩ |
|
|
||||||||||
(*) |
Includes amounts related to discontinued operations. |
31. |
Income Tax Expense |
(1) | Income tax expenses for the years ended December 31, 2021, 2020 and 2019 consist of the following: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Current tax expense: |
||||||||||||
Current year |
₩ |
|||||||||||
Current tax of prior years(*) |
( |
) | ||||||||||
Deferred tax expense: |
||||||||||||
Changes in net deferred tax assets |
||||||||||||
Income tax expense |
||||||||||||
Tax expense of continuing operation |
||||||||||||
Tax expense of discontinued operation |
||||||||||||
₩ |
|
|
||||||||||
(*) | Current tax of prior years are mainly composed of the income tax refund due to a change in the interpretation of the tax authority in relation to the income tax previously recognized by the Group. |
(2) | The difference between income taxes computed using the statutory corporate income tax rates and the recorded income taxes for the years ended December 31, 2021, 2020 and 2019 is attributable to the following: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Income taxes at statutory income tax rate |
₩ |
|||||||||||
Non-taxable income |
( |
) | ( |
) | ( |
) | ||||||
Non-deductible expenses |
||||||||||||
Tax credit and tax reduction |
( |
) | ( |
) | ( |
) | ||||||
Changes in unrecognized deferred taxes |
( |
) | ( |
) | ||||||||
Changes in tax rate |
( |
) | ||||||||||
Income tax refund and others |
( |
) | ( |
) | ||||||||
Income tax expense |
₩ |
|
|
|||||||||
(3) | Deferred taxes directly charged to (credited from) equity for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Valuation gain (loss) on financial assets measured at fair value |
₩ |
( |
) | ( |
) | |||||||
Share of other comprehensive income (loss) of associates and joint ventures |
( |
) | ( |
) | ||||||||
Valuation loss on derivatives |
( |
) | ( |
) | ( |
) | ||||||
Remeasurement of defined benefit liabilities |
( |
) | ( |
) | ||||||||
Gain on disposal of treasury shares and others |
||||||||||||
₩ |
( |
) | ( |
) | |
|||||||
(4) | Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||
Beginning |
Deferred tax expense (income) |
Directly charged to (credited from) equity |
Business combinations |
Spin-off |
Ending |
|||||||||||||||||||
Deferred tax assets (liabilities) related to temporary differences: |
||||||||||||||||||||||||
Loss allowance |
₩ |
( |
) | ( |
) | |||||||||||||||||||
Accrued interest income |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Financial assets measured at fair value |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Investments in subsidiaries, associates and joint ventures |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Property and equipment and intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Provisions |
( |
) | ( |
) | ||||||||||||||||||||
Retirement benefit obligation |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Valuation gain on derivatives |
( |
) | ( |
) | ||||||||||||||||||||
Gain or loss on foreign currency translation |
( |
) | ||||||||||||||||||||||
Incremental costs to acquire a contract |
( |
) | ( |
) | ||||||||||||||||||||
Contract assets and liabilities |
( |
) | ( |
) | ||||||||||||||||||||
Right-of-use |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Lease liabilities |
( |
) | ||||||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards: |
||||||||||||||||||||||||
Tax loss carryforwards |
( |
) | ||||||||||||||||||||||
Tax credit |
( |
) | ||||||||||||||||||||||
( |
) | |||||||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
(In millions of won) |
||||||||||||||||||||
2020 |
||||||||||||||||||||
Beginning |
Deferred tax expense (income) |
Directly charged to (credited from) equity |
Business combinations |
Ending |
||||||||||||||||
Deferred tax assets (liabilities) related to temporary differences: |
||||||||||||||||||||
Loss allowance |
₩ |
— | ||||||||||||||||||
Accrued interest income |
( |
) | — | ( |
) | ( |
) | |||||||||||||
Financial assets measured at fair value |
( |
) | ( |
) | ( |
) | ||||||||||||||
Investments in subsidiaries, associates and joint ventures |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Property and equipment and intangible assets |
( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||
Provisions |
— | — | ||||||||||||||||||
Retirement benefit obligation |
( |
) | ||||||||||||||||||
Valuation gain on derivatives |
( |
) | — | |||||||||||||||||
Gain or loss on foreign currency translation |
( |
) | — | — | ||||||||||||||||
Incremental costs to acquire a contract |
( |
) | — | — | ( |
) | ||||||||||||||
Contract assets and liabilities |
( |
) | — | — | ( |
) | ||||||||||||||
Right-of-use |
( |
) | — | — | ( |
) | ||||||||||||||
Lease liabilities |
( |
) | — | — | ||||||||||||||||
Others |
( |
) | — | |||||||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Deferred tax assets related to unused tax loss carryforwards and tax credit carryforwards: |
||||||||||||||||||||
Tax loss carryforwards |
( |
) | — | — | ||||||||||||||||
Tax credit |
— | — | ||||||||||||||||||
— | — | |||||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
(5) | Details of temporary differences, unused tax loss carryforwards and unused tax credits carryforwards which are not recognized as deferred tax assets (liabilities), in the consolidated statements of financial position as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Loss allowance |
₩ |
|||||||
Investments in subsidiaries, associates and joint ventures |
( |
) | ||||||
Other temporary differences |
||||||||
Unused tax loss carryforwards |
||||||||
Unused tax credit carryforwards |
(6) | The amount of unused tax loss carryforwards and unused tax credit carryforwards which are not recognized as deferred tax assets as of December 31, 2021 are expiring within the following periods: |
(In millions of won) |
||||||||
Unused tax loss carryforwards |
Unused tax credit carryforwards |
|||||||
Less than 1 year |
₩ |
|||||||
1 ~ 2 years |
||||||||
2 ~ 3 years |
||||||||
More than 3 years |
||||||||
₩ |
|
|||||||
32. |
Earnings per Share |
1) | Basic earnings per share for the years ended December 31, 2021, 2020 and 2019 are calculated as follows: |
(In millions of won, except for share data) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Basic earnings per share attributable to owners of the Parent Company: |
||||||||||||
Profit from continuing operation attributable to owners of the Parent Company |
₩ |
|||||||||||
Interest on hybrid bonds |
( |
) | ( |
) | ( |
) | ||||||
Profit from continuing operation attributable to owners of the Parent Company on common shares |
||||||||||||
Profit from discontinued operation attributable to owners of the Parent Company on common shares |
||||||||||||
Weighted average number of common shares outstanding |
||||||||||||
Basic earnings per share (in won) |
||||||||||||
Continuing operation |
₩ |
|||||||||||
Discontinued operation |
||||||||||||
2) | The weighted average number of common shares outstanding for the years ended December 31, 2021, 2020 and 2019 are calculated as follows: |
(In shares) |
||||||||
2021 |
||||||||
Number of common shares |
Weighted average number of common shares |
|||||||
Issued shares at January 1, 2021 |
||||||||
Treasury shares at January 1, 2021 |
( |
) | ( |
) | ||||
Acquisition of treasury shares |
( |
) | ( |
) | ||||
Disposal of treasury shares |
||||||||
Spin-off |
( |
) | ( |
) | ||||
(In shares) |
||||||||
2020 |
||||||||
Number of common shares |
Weighted average number of common shares |
|||||||
Issued shares at January 1, 2020 |
||||||||
Treasury shares at January 1, 2020 |
( |
) | ( |
) | ||||
Acquisition of treasury shares |
( |
) | ( |
) | ||||
(In shares) |
||||||||
2019 |
||||||||
Number of common shares |
Weighted average number of common shares |
|||||||
Issued shares at January 1, 2019 |
||||||||
Treasury shares at January 1, 2019 |
( |
) | ( |
) | ||||
Disposal of treasury shares |
||||||||
1) | Diluted earnings per share for the years ended December 31, 2021 and 2020 are calculated as follows: |
(In millions of won, except for share data) |
||||||||
2021 |
2020 |
|||||||
Profit from continuing operation attributable to owners of the Parent Company on common shares |
₩ |
|||||||
Profit from discontinued operation attributable to owners of the Parent Company on common shares |
|
|||||||
Adjusted weighted average number of common shares outstanding |
|
|||||||
Diluted earnings per share (in won) |
||||||||
Continuing operation |
₩ |
|||||||
Discontinued operation |
||||||||
2) | The adjusted weighted average number of common shares outstanding for the years ended December 31, 2021 and 2020 are calculated as follows: |
(In shares) |
||||||||
2021 |
2020 |
|||||||
Outstanding shares at January 1 |
|
|||||||
Effect of treasury shares |
( |
) | ( |
) | ||||
Effect of Spin-off |
( |
) | — | |||||
Effect of share option |
|
|||||||
|
|
|
|
|||||
Adjusted weighted average number of common shares outstanding |
33. |
Dividends |
(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 |
|||||||||||||
2021 | % | ₩ |
||||||||||||||||
Cash dividends (Year-end) |
% | |||||||||||||||||
|
|
|||||||||||||||||
₩ |
||||||||||||||||||
|
|
|||||||||||||||||
2020 | % | ₩ |
||||||||||||||||
Cash dividends (Year-end) |
% | |||||||||||||||||
|
|
|||||||||||||||||
₩ |
||||||||||||||||||
|
|
|||||||||||||||||
2019 | % | ₩ |
||||||||||||||||
Cash dividends (Year-end) |
% | |||||||||||||||||
|
|
|||||||||||||||||
₩ |
||||||||||||||||||
|
|
(In won) | ||||||||||||
Year |
Dividend type |
Dividend per share |
Closing price at year-end |
Dividend yield ratio | ||||||||
2021 |
||||||||||||
2020 |
||||||||||||
2019 |
34. |
Categories of Financial Instruments |
(1) | Financial assets by category as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||
Financial assets at FVTPL |
Equity instruments at FVOCI |
Debt instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total |
|||||||||||||||||||
Cash and cash equivalents |
₩ |
— | — | — | ||||||||||||||||||||
Financial instruments |
— | — | — | |||||||||||||||||||||
Short-term investment securities |
— | — | — | — | ||||||||||||||||||||
Long-term investment securities(*) |
— | — | ||||||||||||||||||||||
Accounts receivable — trade |
— | — | — | — | ||||||||||||||||||||
Loans and other receivables |
— | — | — | |||||||||||||||||||||
Derivative financial assets |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*) | The Group designated ₩ |
(In millions of won) |
||||||||||||||||||||||||
December 31, 2020 |
||||||||||||||||||||||||
Financial assets at FVTPL |
Equity instruments at FVOCI |
Debt instruments at FVOCI |
Financial assets at amortized cost |
Derivatives hedging instrument |
Total |
|||||||||||||||||||
Cash and cash equivalents(*1) |
₩ |
— | — | — | ||||||||||||||||||||
Financial instruments(*1) |
— | — | — | |||||||||||||||||||||
Short-term investment securities |
— | — | — | — | ||||||||||||||||||||
Long-term investment securities(*2) |
— | — | ||||||||||||||||||||||
Accounts receivable — trade |
— | — | — | — | ||||||||||||||||||||
Loans and other receivables |
— | — | — | |||||||||||||||||||||
Derivative financial assets |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Some of the financial assets measured at amortized cost were reclassified to financial assets measured at FVTPL. |
(*2) | The Group designated ₩ |
(2) | Financial liabilities by category as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||||
December 31, 2021 |
||||||||||||||||
Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total |
|||||||||||||
Accounts payable — trade |
₩ |
— | — | |||||||||||||
Derivative financial liabilities |
— | |||||||||||||||
Borrowings |
— | — | ||||||||||||||
Debentures |
— | — | ||||||||||||||
Lease liabilities(*) |
— | — | ||||||||||||||
Accounts payable — other and others |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
(In millions of won) |
||||||||||||||||
December 31, 2020 |
||||||||||||||||
Financial liabilities at FVTPL |
Financial liabilities at amortized cost |
Derivatives hedging instrument |
Total |
|||||||||||||
Accounts payable — trade |
₩ |
— | — | |||||||||||||
Derivative financial liabilities |
— | |||||||||||||||
Borrowings |
— | — | ||||||||||||||
Debentures |
— | — | ||||||||||||||
Lease liabilities(*) |
— | — | ||||||||||||||
Accounts payable — other and others |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
(*) | Lease liabilities are not applicable on category of financial liabilities, but are classified as financial liabilities measured at amortized cost on consideration of nature for measurement of liabilities. |
35. |
Financial Risk Management |
1) | Market risk |
(In millions of won, thousands of foreign currencies) |
||||||||||||||||
Assets |
Liabilities |
|||||||||||||||
Foreign currencies |
Won equivalent |
Foreign currencies |
Won equivalent |
|||||||||||||
USD |
₩ |
₩ |
||||||||||||||
EUR |
||||||||||||||||
JPY |
||||||||||||||||
Others |
— | — | ||||||||||||||
|
|
|
|
|||||||||||||
₩ |
₩ |
|||||||||||||||
|
|
|
|
(In millions of won) |
||||||||
If increased by 10% |
If decreased by 10% |
|||||||
USD |
₩ |
( |
) | |||||
EUR |
( |
) | ||||||
JPY |
( |
) | ||||||
Others |
( |
) | ||||||
|
|
|
|
|||||
₩ |
( |
) | ||||||
|
|
|
|
2) | Credit risk |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Cash and cash equivalents |
₩ |
|||||||
Financial instruments |
||||||||
Investment securities |
||||||||
Accounts receivable — trade |
||||||||
Contract assets |
||||||||
Loans and other receivables |
||||||||
Derivative financial assets |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(In millions of won) |
||||||||||||||||||||
Financial assets at FVTPL |
Financial assets at FVOCI |
At amortized cost |
||||||||||||||||||
12-month ECL |
Lifetime ECL — not credit impaired |
Lifetime ECL — credit impaired |
||||||||||||||||||
Gross amount |
₩ |
|||||||||||||||||||
Loss allowance |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amount |
₩ |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
||||||||||||||||
12-month ECL |
Lifetime ECL — not credit impaired |
Lifetime ECL — credit impaired |
Total |
|||||||||||||
December 31, 2020 |
₩ |
|||||||||||||||
Remeasurement of loss allowance, net(*) |
||||||||||||||||
Transfer to lifetime ECL — not credit impaired |
( |
) | ||||||||||||||
Transfer to lifetime ECL — credit impaired |
( |
) | ( |
) | ||||||||||||
Amounts written off |
( |
) | ( |
) | ||||||||||||
Recovery of amounts written off |
||||||||||||||||
Business combination |
||||||||||||||||
Spin-off |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 31, 2021 |
₩ |
|||||||||||||||
|
|
|
|
|
|
|
|
(*) |
Includes amounts related to discontinued operations. |
3) | Liquidity risk |
(In millions of won) |
||||||||||||||||||||
Carrying amount |
Contractual cash flows |
Less than 1 year |
1 - 5 years |
More than 5 years |
||||||||||||||||
Accounts payable — trade |
₩ |
— | — | |||||||||||||||||
Borrowings(*) |
— | |||||||||||||||||||
Debentures(*) |
||||||||||||||||||||
Lease liabilities |
||||||||||||||||||||
Accounts payable — other and others(*) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*) | Includes interest payables. |
(In millions of won) |
||||||||||||||||||||
Carrying amount |
Contractual cash flows |
Less than 1 year |
1 - 5 years |
More than 5 years |
||||||||||||||||
Assets |
₩ |
|||||||||||||||||||
Liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Capital management |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Total liabilities |
₩ |
|||||||
Total equity |
||||||||
|
|
|
|
|||||
Debt-equity ratios |
% | % | ||||||
|
|
|
|
(3) | Fair value |
1) | Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2021 are as follows: |
(In millions of won) |
December 31, 2021 |
|||||||||||||||||||
Carrying amount |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
Financial assets that are measured at fair value: |
||||||||||||||||||||
FVTPL |
₩ |
|||||||||||||||||||
Derivative hedging instruments |
— | — | ||||||||||||||||||
FVOCI |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities that are measured at fair value: |
||||||||||||||||||||
FVTPL |
₩ |
— | — | |||||||||||||||||
Derivative hedging instruments |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
Borrowings |
₩ |
— | — | |||||||||||||||||
Debentures |
— | — | ||||||||||||||||||
Long-term payables — other |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2) | Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2020 are as follows: |
(In millions of won) |
December 31, 2020 |
|||||||||||||||||||
Carrying amount |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
Financial assets that are measured at fair value: |
||||||||||||||||||||
FVTPL(*) |
₩ |
|||||||||||||||||||
Derivative hedging instruments |
— | — | ||||||||||||||||||
FVOCI |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities that are measured at fair value: |
||||||||||||||||||||
FVTPL |
₩ |
— | — | |||||||||||||||||
Derivative hedging instruments |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities that are not measured at fair value: |
||||||||||||||||||||
Borrowings |
₩ |
— | — | |||||||||||||||||
Debentures |
— | — | ||||||||||||||||||
Long-term payables — other |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*) | Some of the financial assets measured at amortized cost were reclassified to financial assets measured at FVTPL. |
Interest rate | ||
Derivative instruments |
||
Borrowings and debentures |
||
Long-term payables — other |
3) | There have been no transfers between Level 2 and Level 1 for the year ended December 31, 2021. The changes of financial assets classified as Level 3 for the year ended December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||
Balance at January 1, 2021 |
Gain (loss) for the year(*1) |
OCI |
Acquisition |
Disposal |
Transfer |
Spin-off |
Balance at December 31, 2021 |
|||||||||||||||||||||||||
Financial assets |
||||||||||||||||||||||||||||||||
FVTPL |
₩ |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
FVOCI(*2) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Financial liabilities |
|
|||||||||||||||||||||||||||||||
FVTPL |
₩ |
( |
) | ( |
) | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes amounts related to discontinued operations. |
(*2) | The transfer for the year ended December 31, 2021 includes W K-net Culture and Contents Venture Fund were listed on Korea Exchange. |
(4) | Enforceable master netting agreement or similar agreement |
(In millions of won) |
December 31, 2021 |
|||||||||||
Gross financial instruments recognized |
Amount offset |
Net financial instruments presented on the statements of financial position |
||||||||||
Financial assets: |
||||||||||||
Accounts receivable — trade and others |
₩ |
( |
) | |||||||||
Financial liabilities: |
||||||||||||
Accounts payable — other and others |
₩ |
( |
) |
(In millions of won) |
December 31, 2020 |
|||||||||||||||||||
Gross financial instruments recognized |
Amount offset |
Net financial instruments presented on the statements of financial position |
Relevant financial instruments not offset |
Net amount |
||||||||||||||||
Financial assets: |
||||||||||||||||||||
Derivative instruments(*) |
₩ |
— | ( |
) | ||||||||||||||||
Accounts receivable — trade and others |
( |
) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities: |
||||||||||||||||||||
Derivative instruments(*) |
₩ |
— | ( |
) | — | |||||||||||||||
Accounts payable — other and others |
( |
) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*) | The balance represents the net amount under the standard terms and conditions of International Swaps and Derivatives Association. |
36. |
Transactions with Related Parties |
Relationship |
Company | |
Ultimate Controlling Entity |
SK Inc. | |
Joint ventures |
Finnq Co., Ltd. and another | |
Associates |
SK China Company Ltd. and 42 others | |
Others |
The Ultimate Controlling Entity’s subsidiaries and associates, etc. |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Salaries |
₩ |
|||||||||||
Defined benefits plan expenses |
||||||||||||
Share option |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
(3) | Transactions with related parties for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||||
2021 |
||||||||||||||
Scope |
Company |
Operating revenue and others |
Operating expense and others(*1) |
Acquisition of property and equipment |
||||||||||
Ultimate Controlling Entity |
SK Inc.(*2) | ₩ |
||||||||||||
|
|
|
|
|
|
|||||||||
Associates |
F&U Credit information Co., Ltd. |
— | ||||||||||||
KEB HanaCard Co., Ltd. | — | |||||||||||||
SK Wyverns Co., Ltd.(*3) | — | |||||||||||||
Daehan Kanggun BcN Co., Ltd. | — | — | ||||||||||||
SK China Company Ltd.(*4) | — | — | ||||||||||||
Others(*5) | — | |||||||||||||
|
|
|
|
|
|
|||||||||
— | ||||||||||||||
|
|
|
|
|
|
|||||||||
Others |
SK Innovation Co., Ltd. |
— | ||||||||||||
SK Energy Co., Ltd. | — | |||||||||||||
SK Geo Centric Co., Ltd. (Formerly, SK Global Chemical Co., Ltd.) |
— | |||||||||||||
SK TNS Co., Ltd.(*3) |
||||||||||||||
SKC Infra Service Co., Ltd.(*3) | ||||||||||||||
SK Networks Co., Ltd.(*6) | ||||||||||||||
SK Networks Service Co., Ltd. | ||||||||||||||
SK hynix Inc.(*7) | — | |||||||||||||
Happy Narae Co., Ltd. | ||||||||||||||
SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co., Ltd.)(*8) |
||||||||||||||
Content Wavve Co., Ltd. | — | |||||||||||||
Eleven Street Co., Ltd. | — | |||||||||||||
SK Planet Co., Ltd. |
||||||||||||||
SK hynix Semiconductor (China) Ltd. |
— | — | ||||||||||||
SK hynix system ic (Wuxi) Co., Ltd. |
— | — | ||||||||||||
SK ON Hungary Kft. (Formerly, SK Battery Hungary Kft.) |
— | — | ||||||||||||
SK RENT A CAR Co., Ltd. | — | |||||||||||||
DREAMUS COMPANY | ||||||||||||||
SK m&service Co., Ltd. | ||||||||||||||
UbiNS Co., Ltd. | ||||||||||||||
Others | ||||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||
|
|
|
|
|
|
(*1) | Operating expense and others include lease payments by the Group. |
(*2) | Operating expense and others include ₩ |
(*3) | Transactions occurred before the related party relationship terminated. |
(*4) | Operating revenue and others include ₩ |
(*5) | Operating revenue and others include ₩ |
(*6) | Operating expenses and others include costs for handset purchases amounting to ₩ |
(*7) | Operating revenue and others include ₩ |
(*8) | Operating revenue and others include ₩ |
(In millions of won) |
||||||||||||||
2020 |
||||||||||||||
Scope |
Company |
Operating revenue and others |
Operating expense and others(*1) |
Acquisition of property and equipment |
||||||||||
Ultimate Controlling Entity |
SK Inc.(*2) | ₩ |
||||||||||||
Associates |
F&U Credit information Co., Ltd. |
— | ||||||||||||
SK hynix Inc.(*3) | — | |||||||||||||
KEB HanaCard Co., Ltd. | — | |||||||||||||
SK Wyverns Co., Ltd. | — | |||||||||||||
Content Wavve Co., Ltd. | — | |||||||||||||
Others(*4) | ||||||||||||||
Others |
SK Ecoplant Co., Ltd. (Formerly, SK Engineering & Construction Co., Ltd.) |
— | ||||||||||||
SK Innovation Co., Ltd. | — | |||||||||||||
SK Networks Co., Ltd.(*5) |
||||||||||||||
SK Networks Services Co., Ltd. |
||||||||||||||
SK Telesys Co., Ltd. |
||||||||||||||
SK TNS Co., Ltd. |
||||||||||||||
SK Energy Co., Ltd. |
— | |||||||||||||
SK hynix Semiconductor (China) Ltd. |
— | — | ||||||||||||
SK ON Hungary Kft. (Formerly, SK Battery Hungary Kft.) |
— | — | ||||||||||||
SK Geo Centric Co., Ltd. (Formerly, SK Global Chemical Co., Ltd.) |
— | |||||||||||||
SK Global Chemical International Trading (Shanghai) Co., Ltd. |
— | |||||||||||||
HappyNarae Co., Ltd. | ||||||||||||||
Others | ||||||||||||||
₩ |
||||||||||||||
(*1) | Operating expense and others include lease payments by the Group. |
(*2) | Operating expense and others include ₩ |
(*3) | Operating revenue and others include ₩ ₩ |
(*4) | Operating revenue and others include ₩ |
(*5) | Operating expenses and others include costs for handset purchases amounting to ₩ |
(In millions of won) |
||||||||||||||
2019 |
||||||||||||||
Scope |
Company |
Operating revenue and others |
Operating expense and others(*1) |
Acquisition of property and equipment |
||||||||||
Ultimate Controlling Entity |
SK Inc.(*2) | ₩ |
||||||||||||
|
|
|
|
|
|
|||||||||
Associates |
F&U Credit information Co., Ltd. |
— | ||||||||||||
SK hynix Inc.(*3) | — | |||||||||||||
KEB HanaCard Co., Ltd. | — | |||||||||||||
SK Wyverns Co., Ltd. | — | |||||||||||||
Others(*4) | ||||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Others |
SK Ecoplant Co., Ltd. (Formerly, SK Engineering & Construction Co., Ltd.) |
|||||||||||||
SK Innovation Co., Ltd. | — | |||||||||||||
SK Networks Co., Ltd.(*5) |
||||||||||||||
SK Networks Services Co., Ltd. |
||||||||||||||
SK Telesys Co., Ltd. |
||||||||||||||
SK TNS Co., Ltd. |
||||||||||||||
SK Energy Co., Ltd. |
— | |||||||||||||
SK hynix Semiconductor (China) Ltd. |
— | — | ||||||||||||
SK Global Chemical International Trading (Shanghai) Co., Ltd. |
— | |||||||||||||
HappyNarae Co., Ltd. | ||||||||||||||
Others | ||||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||
|
|
|
|
|
|
(*1) | Operating expense and others include lease payments by the Group. |
(*2) | Operating expense and others include ₩ |
(*3) | Operating revenue and others include ₩ |
(*4) | Operating revenue and others include ₩ KIF-Stonebridge IT Investment Fund which was deducted from the investments in associates. |
(*5) | Operating expenses and others include costs for handset purchases amounting to ₩ |
(4) | Account balances with related parties as of December 31, 2021 and 2020 are as follows: |
(In millions of won) |
||||||||||||||
December 31, 2021 |
||||||||||||||
Receivables |
Payables |
|||||||||||||
Scope |
Company |
Loans |
Accounts receivable — trade, etc. |
Accounts payable — other, etc. |
||||||||||
Ultimate Controlling Entity |
SK Inc. |
₩ |
— | |||||||||||
Associates |
F&U Credit information Co., Ltd. |
— | ||||||||||||
Wave City Development Co., Ltd.(*1) |
— | — | ||||||||||||
Daehan Kanggun BcN Co., Ltd.(*2) |
— | |||||||||||||
KEB HanaCard Co., Ltd. |
— | |||||||||||||
Others |
— | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Others |
SK Innovation Co., Ltd. |
— | ||||||||||||
SK Networks Co., Ltd. |
— | |||||||||||||
Mintit Co., Ltd. |
— | |||||||||||||
SK hynix Inc. |
— | |||||||||||||
Happy Narae Co., Ltd. |
— | |||||||||||||
SK m&service Co., Ltd. |
— | |||||||||||||
SK Shieldus Co., Ltd. (Formerly, ADT CAPS Co., Ltd.) |
— | |||||||||||||
Content Wavve Co., Ltd. |
— | |||||||||||||
Incross Co., Ltd. |
— | |||||||||||||
Eleven Street Co., Ltd. |
— | |||||||||||||
SK Planet Co., Ltd. |
— | |||||||||||||
SK RENT A CAR Co., Ltd. |
— | |||||||||||||
UbiNS Co., Ltd. |
— | |||||||||||||
Others |
— | |||||||||||||
|
|
|
|
|
|
|||||||||
— | ||||||||||||||
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||
|
|
|
|
|
|
(*1) | As of December 31, 2021, the Parent Company recognized loss allowance amounting to ₩ |
(*2) | As of December 31, 2021, the Parent Company recognized full loss allowance for the balance of loans to Daehan Kanggun BcN Co., Ltd. |
(In millions of won) |
||||||||||||||
December 31, 2020 |
||||||||||||||
Receivables |
Payables |
|||||||||||||
Scope |
Company |
Loans |
Accounts receivable — trade, etc |
Accounts payable — other, etc |
||||||||||
Ultimate Controlling Entity |
SK Inc. |
₩ |
— | |||||||||||
Associates |
F&U Credit information Co., Ltd. |
— | ||||||||||||
SK hynix Inc. |
— | |||||||||||||
Wave City Development Co., Ltd.(*1) |
— | — | ||||||||||||
Daehan Kanggun BcN Co., Ltd.(*2) |
— | |||||||||||||
KEB HanaCard Co., Ltd. |
— | |||||||||||||
Content Wavve Co., Ltd. |
— | |||||||||||||
Others |
— | |||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|||||||||
Others |
SK Ecoplant Co., Ltd. (Formerly, SK Engineering & Construction Co., Ltd.) |
— | ||||||||||||
SK Innovation Co., Ltd. |
— | |||||||||||||
SK Networks. Co., Ltd. |
— | |||||||||||||
SK Networks Services Co., Ltd. |
— | |||||||||||||
SK Telesys Co., Ltd. |
— | |||||||||||||
SK TNS Co., Ltd. |
— | |||||||||||||
SK Energy Co., Ltd. |
— | |||||||||||||
SK hystec Co., Ltd. |
— | |||||||||||||
SK hynix Semiconductor (China) Ltd. |
— | — | ||||||||||||
SK ON Hungary Kft. (Formerly, SK Battery Hungary Kft.) |
— | — | ||||||||||||
SK Geo Centric Co., Ltd. (Formerly, SK Global Chemical Co., Ltd.) |
— | |||||||||||||
SK Global Chemical International Trading (Shanghai) Co., Ltd. |
— | |||||||||||||
HappyNarae Co., Ltd. |
— | |||||||||||||
Others |
— | |||||||||||||
|
|
|
|
|
|
|||||||||
— | ||||||||||||||
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||
|
|
|
|
|
|
(*1) | As of December 31, 2020, the Parent Company recognized loss allowance amounting to ₩ |
(*2) | As of December 31, 2020, the Parent Company recognized full loss allowance for the balance of loans to Daehan Kanggun BcN Co., Ltd. |
(5) | The Group has granted SK REIT Co., Ltd. the right of first offer regarding the disposal of real estate owned by the Group. Whereby, the negotiation period is within 3 to 5 years from June 30, 2021, date of agreement, and the Group has been granted the right by SK REIT Co., Ltd. to lease the real estate in preference to a third party if SK REIT Co., Ltd. purchases the real estate from the Group. |
(6) | The details of additional investments and disposal of associates and joint ventures for the year ended December 31, 2021 as presented in note 12. |
37. |
Commitments and Contingencies |
38. |
Statements of Cash Flows |
(1) | Adjustments for income and expenses from operating activities for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Interest income |
₩ |
( |
( |
( |
||||||||
Dividends |
( |
( |
( |
|||||||||
Gain on foreign currency translations |
( |
( |
( |
|||||||||
Gain on sale of accounts receivable — other |
( |
( |
( |
|||||||||
Gain relating to investments in associates and joint ventures, net |
( |
( |
( |
|||||||||
Gain on disposal of property and equipment and intangible assets |
( |
( |
( |
|||||||||
Gain on business transfer |
( |
( |
( |
|||||||||
Gain relating to financial instruments at FVTPL |
( |
( |
( |
|||||||||
Other income |
( |
( |
( |
|||||||||
Interest expense |
||||||||||||
Loss on foreign currency translations |
||||||||||||
Loss on disposal of long-term investment securities |
— | — | ||||||||||
Loss on sale of accounts receivable — other |
— | — | ||||||||||
Income tax expense |
||||||||||||
Expense related to defined benefit plan |
||||||||||||
Share option |
||||||||||||
Bonus paid by treasury shares |
— | — | ||||||||||
Depreciation and amortization |
||||||||||||
Bad debt for accounts receivables — trade |
||||||||||||
Loss on disposal of property and equipment and intangible assets |
||||||||||||
Impairment loss on property and equipment and intangible assets |
||||||||||||
Bad debt for accounts receivable — other |
||||||||||||
Loss on impairment of investment assets |
— | — | ||||||||||
Loss relating to financial instruments at FVTPL |
||||||||||||
Other financial fees |
— | |||||||||||
Other expenses |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
(2) | Changes in assets and liabilities from operating activities for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Accounts receivable — trade |
₩ |
( |
) | ( |
) | ( |
) | |||||
Accounts receivable — other |
( |
) | ( |
) | ||||||||
Accrued income |
— | — | ||||||||||
Advanced payments |
( |
) | ( |
) | ( |
) | ||||||
Prepaid expenses |
( |
) | ||||||||||
Inventories |
( |
) | ( |
) | ||||||||
Long-term accounts receivable — other |
( |
) | ||||||||||
Contract assets |
( |
) | ( |
) | ||||||||
Guarantee deposits |
||||||||||||
Accounts payable — trade |
( |
) | ||||||||||
Accounts payable — other |
( |
) | ||||||||||
Withholdings |
( |
) | ( |
) | ||||||||
Contract liabilities |
( |
) | ||||||||||
Deposits received |
( |
) | ( |
) | ( |
) | ||||||
Accrued expenses |
||||||||||||
Provisions |
( |
) | ( |
) | ( |
) | ||||||
Long-term provisions |
( |
) | ( |
) | ( |
) | ||||||
Plan assets |
( |
) | ( |
) | ( |
) | ||||||
Retirement benefit payment |
( |
) | ( |
) | ( |
) | ||||||
Others |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
₩ |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
(3) | Significant non-cash transactions for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Increase (decrease) in accounts payable — other relating to the acquisition of property and equipment and intangible assets |
₩ |
( |
) | |||||||||
Increase of right-of-use |
||||||||||||
Merger of Tbroad Co., Ltd. and two other companies by SK Broadband Co., Ltd. |
— | — | ||||||||||
Change in assets and liabilities by spin-off (notes 41) |
— | — | ||||||||||
Retirement of treasury shares |
— | — | ||||||||||
Disposal of treasury shares (Congratulatory bonus for spin-off) |
— | — |
(4) | Reconciliation of liabilities arising from financing activities for the years ended December 31, 2021 and 20 2 0 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||
Non-cash transactions |
||||||||||||||||||||||||||||||||
January 1, 2021 |
Cash flows |
Exchange rate changes(*) |
Fair value changes |
Business combinations |
Spin-off |
Other changes |
December 31, 2021 |
|||||||||||||||||||||||||
Total liabilities from financing activities: |
||||||||||||||||||||||||||||||||
Short-term borrowings |
₩ |
( |
) | — | — | ( |
) | |||||||||||||||||||||||||
Long-term borrowings |
— | ( |
) | |||||||||||||||||||||||||||||
Debentures |
( |
) | — | — | ( |
) | ||||||||||||||||||||||||||
Lease liabilities |
( |
) | — | — | ( |
) | ||||||||||||||||||||||||||
Long-term payables — other |
( |
) | — | — | — | — | ||||||||||||||||||||||||||
Derivative financial liabilities |
— | ( |
) | — | ( |
) | — | |||||||||||||||||||||||||
Derivative financial assets |
( |
) | — | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Financial liabilities at FVTPL |
— | — | — | ( |
) | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Other cash flows from financing activities: |
||||||||||||||||||||||||||||||||
Payments of cash dividends |
₩ |
( |
) | |||||||||||||||||||||||||||||
Payments of interest on hybrid bonds |
( |
) | ||||||||||||||||||||||||||||||
Acquisition of treasury shares |
( |
) | ||||||||||||||||||||||||||||||
Cash inflow from transactions with the non-controlling shareholders |
||||||||||||||||||||||||||||||||
Cash outflow from transactions with the non-controlling shareholders |
( |
) | ||||||||||||||||||||||||||||||
Cash outflow from spin-off |
( |
) | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
( |
) | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
₩ |
( |
) | ||||||||||||||||||||||||||||||
|
|
(*) | The effect of changes in foreign exchange rates for financial liabilities at amortized cost. |
(In millions of won) |
||||||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||||||
January 1, 2020 |
Cash flows |
Non-cash transactions |
||||||||||||||||||||||||||
Exchange rate changes(*) |
Fair value changes |
Business combinations |
Other changes |
December 31, 2020 |
||||||||||||||||||||||||
Total liabilities from financing activities: |
||||||||||||||||||||||||||||
Short-term borrowings |
₩ |
— | — | — | ||||||||||||||||||||||||
Long-term borrowings |
( |
) | ( |
) | — | — | ||||||||||||||||||||||
Debentures |
( |
) | — | — | ||||||||||||||||||||||||
Lease liabilities |
( |
) | — | — | ||||||||||||||||||||||||
Long-term payables — other |
( |
) | — | — | — | |||||||||||||||||||||||
Derivative financial liabilities |
— | — | — | |||||||||||||||||||||||||
Derivative financial assets |
( |
) | — | — | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||||||||||
Other cash flows from financing activities: |
||||||||||||||||||||||||||||
Payments of cash dividends |
₩ |
( |
||||||||||||||||||||||||||
Payments of interest on hybrid bonds |
( |
) | ||||||||||||||||||||||||||
Acquisition of treasury shares |
( |
) | ||||||||||||||||||||||||||
Cash inflow from transactions with the non-controlling shareholders |
||||||||||||||||||||||||||||
Cash outflow from transactions with the non-controlling shareholders |
( |
) | ||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
( |
) | |||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
₩ |
( |
) | ||||||||||||||||||||||||||
|
|
(*) | The effect of changes in foreign exchange rates for financial liabilities at amortized cost. |
39. |
Emissions Liabilities |
(1) | The quantity of emissions rights allocated free of charge for each implementation year as of December 31, 2021 are as follows: |
(In tCO2-eQ) |
| |||||||||||||||
Quantities allocated in 2019 |
Quantities allocated in 2020 |
Quantities allocated in 2021 |
Total |
|||||||||||||
Emissions rights allocated free of charge |
(2) | Changes in emissions rights quantities the Parent Company held are as follows: |
(In tCO2-eQ) |
||||||||||||||||
Quantities allocated in 2019 |
Quantities allocated in 2020 |
Quantities allocated in 2021 |
Total |
|||||||||||||
January 1 |
( |
) | ( |
) | — | ( |
) | |||||||||
Allocation at no cost |
||||||||||||||||
Additional allocation |
— | |||||||||||||||
Purchase |
— | — | ||||||||||||||
Surrender or shall be surrendered |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Borrowing |
— | — | ||||||||||||||
December 31 |
— | — | ( |
) | ( |
) | ||||||||||
(3) | As of December 31, 2021, the estimated annual greenhouse gas emissions quantities of the Parent Company are tCO2-eQ. |
40. |
Non-current Assets Held for Sale |
(In millions of won) |
||||||
December 31, 2021 |
||||||
Investments in associates |
Carrot General Insurance Co., Ltd. | ₩ |
|
41. |
Spin-off |
(1) |
In accordance with the resolution of the Board of Directors held on June 10, 2021 and shareholders’ meeting held on October 12, 2021, the Parent Company completed the spin-off of its business of managing investments in semiconductor, new Information and Communication Technologies(“ICT”) and making new investments on November 1, 2021, and the registration of the spin-off was completed as of November 2, 2021. The details of the spin-off are as follows: |
Method of spin-off |
Horizontal spin-off | |
Company | SK Telecom Co., Ltd. (Surviving Company) | |
SK Square Co., Ltd. (Spin-off Company) | ||
Effective date of spin-off |
November 1, 2021 |
(2) | The details of financial information due to the spin-off of its business of managing investments in semiconductor, New ICT and other business and making new investments are as follows: |
1) | Statements of Income |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Operating revenue and other operating income |
₩ |
|||||||||||
Revenue |
||||||||||||
Other income |
||||||||||||
Operating expenses: |
||||||||||||
Labor |
||||||||||||
Commission |
||||||||||||
Depreciation and amortization |
||||||||||||
Network interconnection |
||||||||||||
Advertising |
||||||||||||
Rent |
||||||||||||
Cost of goods sold |
||||||||||||
Others |
||||||||||||
Operating profit |
||||||||||||
Finance income |
||||||||||||
Finance costs |
||||||||||||
Gain relating to investments in subsidiaries, associates and joint ventures, |
||||||||||||
Profit before income tax |
||||||||||||
Income tax expense |
||||||||||||
Profit for the year |
₩ |
|||||||||||
2) |
Statements of Cash Flows |
The |
details of cash flows from discontinued operations for the years ended December 31, 2021, 2020 and 2019 are as follows: |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities |
₩ |
|||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) |
(3) |
Subsequent to the spin-off, the Parent Company lost control over the related businesses. The spin-off was accounted for by derecognizing all related assets and liabilities. The net assets of the spin-off business as of spin-off date was recognized in Capital surplus and others. The details of assets and liabilities derecognized from the financial statements due to the spin-off of its business of managing investments in semiconductor, New ICT and other business and making new investments are as follows: |
(In millions of won) |
| |||
Amount |
||||
Current assets |
₩ |
|||
Non-current assets |
||||
|
|
|||
Total assets |
₩ |
|||
Current liabilities |
₩ |
|||
Non-current liabilities |
||||
|
|
|||
Total liabilities |
₩ |
|||
|
|
|||
Net assets |
₩ |
|||
|
|
(4) |
The Parent Company has obligation to jointly and severally reimburse the Parent Company’s liabilities incurred prior to the spin-off with SK Square Co., Ltd., the spin-off company, in accordance with Article 530-9 (1) of Korean Commercial Act. |
42. |
Cash Dividends paid to the Parent Company |
(In millions of won) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash dividends received from consolidated subsidiaries |
₩ |
|||||||||||
Cash dividends received from associates |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
43. |
Subsequent Events |
Information of disposal | ||
Number of treasury shares to be disposed |
| |
Price of the treasury shares to be disposed per share (in won) |
₩ | |
Aggregate disposal value |
₩ | |
Disposal date |
| |
Purpose of disposal |
| |
Method of disposal |
|
• | assessing the estimated future revenue, operating profit, and expected timing of liquidation of SPC1 by comparing them with relevant industry data; |
• | assessing the reasonableness of the comparable companies used by the Group in determining the discount rate; |
• | assessing the volatility of KIOXIA’s equity value by comparing it against the volatilities for other public comparable companies. |
Note |
2021 |
2020 |
||||||||||
(In millions of won) |
||||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
5,6 |
₩ | 4,874,752 | 2,975,989 | ||||||||
Short-term financial instruments |
5,6,7 |
599,125 | 436,708 | |||||||||
Short-term investment assets |
5,6 |
5,494,158 | 1,535,518 | |||||||||
Trade receivables, net |
5,6,8,34 |
7,123,034 | 4,931,322 | |||||||||
Loans and other receivables, net |
5,6,8,34 |
65,007 | 69,194 | |||||||||
Inventories, net |
9 |
7,089,084 | 6,136,318 | |||||||||
Current tax assets |
6,102 | 202 | ||||||||||
Other current assets |
10 |
707,169 | 485,672 | |||||||||
Other financial assets |
5,6,7 |
30 | 30 | |||||||||
|
|
|
|
|||||||||
25,958,461 | 16,570,953 | |||||||||||
|
|
|
|
|||||||||
Non-current assets |
||||||||||||
Investments in associates and joint ventures |
11 |
1,483,366 | 1,166,244 | |||||||||
Long-term investment assets |
5,6,12 |
6,626,956 | 6,139,627 | |||||||||
Loans and other receivables, net |
5,6,8,34 |
340,850 | 75,589 | |||||||||
Other financial assets |
5,6,7 |
52,481 | 353 | |||||||||
Property, plant and equipment, net |
13,16,35 |
44,349,102 | 41,230,562 | |||||||||
Right-of-use assets, net |
3,14 |
1,569,669 | 1,707,645 | |||||||||
Intangible assets, net |
15 |
3,474,968 | 3,400,278 | |||||||||
Investment property, net |
13,16 |
164,544 | 209,417 | |||||||||
Deferred tax assets |
22,32 |
600,125 | 556,194 | |||||||||
Employee benefit assets, net |
21 |
3,930 | 61,962 | |||||||||
Other non-current assets |
10,35 |
92,870 | 55,029 | |||||||||
|
|
|
|
|||||||||
58,758,861 | 54,602,900 | |||||||||||
|
|
|
|
|||||||||
Total assets |
₩ | 84,717,322 | 71,173,853 | |||||||||
|
|
|
|
Note |
2021 |
2020 |
||||||||||
(In millions of won) |
||||||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Trade payables |
5,6,34 |
₩ | 1,171,300 | 1,046,159 | ||||||||
Other payables |
5,6,34 |
2,377,446 | 2,348,909 | |||||||||
Other non-trade payables |
5,6,17,34 |
2,154,302 | 1,367,193 | |||||||||
Borrowings |
5,6,18,35 |
2,736,032 | 3,114,250 | |||||||||
Provisions |
20 |
8,786 | 13,797 | |||||||||
Current tax liabilities |
2,327,409 | 636,649 | ||||||||||
Lease liabilities |
3,5,6,14 |
301,846 | 347,464 | |||||||||
Other current liabilities |
19 |
231,760 | 197,395 | |||||||||
Other financial liabilities |
5,6 |
605 | 544 | |||||||||
|
|
|
|
|||||||||
11,309,486 | 9,072,360 | |||||||||||
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||
Long-term other payables |
5,6 |
261,875 | 272,396 | |||||||||
Other non-trade payables |
5,6,17 |
22,638 | 29,923 | |||||||||
Borrowings |
5,6,18,35 |
11,404,344 | 8,137,398 | |||||||||
Defined benefit liabilities, net |
21 |
141,747 | 2,739 | |||||||||
Deferred tax liabilities |
22,32 |
458,986 | 266,640 | |||||||||
Lease liabilities |
3,5,6,14 |
1,259,638 | 1,296,252 | |||||||||
Other financial liabilities |
5,6,23 |
5,064 | 88,121 | |||||||||
Other non-current liabilities |
19 |
92,892 | 98,927 | |||||||||
|
|
|
|
|||||||||
13,647,184 | 10,192,396 | |||||||||||
|
|
|
|
|||||||||
Total liabilities |
24,956,670 | 19,264,756 | ||||||||||
|
|
|
|
|||||||||
Equity |
||||||||||||
Equity attributable to owners of the Parent Company |
||||||||||||
Capital stock |
24 |
3,657,652 | 3,657,652 | |||||||||
Capital surplus |
24 |
4,334,643 | 4,143,736 | |||||||||
Other equity |
24,37 |
(2,294,986 | ) | (2,503,122 | ) | |||||||
Accumulated other comprehensive income(loss) |
25 |
500,222 | (405,453 | ) | ||||||||
Retained earnings |
26 |
53,527,575 | 46,995,728 | |||||||||
|
|
|
|
|||||||||
Total equity attributable to owners of the Parent Company |
59,725,106 | 51,888,541 | ||||||||||
Non-controlling interests |
35,546 | 20,556 | ||||||||||
|
|
|
|
|||||||||
Total equity |
59,760,652 | 51,909,097 | ||||||||||
|
|
|
|
|||||||||
Total liabilities and equity |
₩ | 84,717,322 | 71,173,853 | |||||||||
|
|
|
|
Note |
2021 |
2020 |
2019 |
|||||||||||||
(In millions of won, except per share information) |
||||||||||||||||
Revenue |
4,27,34 |
₩ | 33,974,293 | 31,900,418 | 26,990,733 | |||||||||||
Cost of sales |
29,34 |
19,340,881 | 21,089,789 | 18,818,814 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Gross profit |
14,633,412 | 10,810,629 | 8,171,919 | |||||||||||||
Selling and administrative expenses |
28,29 |
(5,245,543 | ) | (5,798,005 | ) | (5,452,740 | ) | |||||||||
Finance income |
5,30 |
2,040,145 | 3,327,905 | 1,247,640 | ||||||||||||
Finance expenses |
5,30 |
(1,331,343 | ) | (1,980,411 | ) | (1,531,417 | ) | |||||||||
Share of profit of equity-accounted investees |
11 |
204,086 | (36,279 | ) | 22,633 | |||||||||||
Other income |
31 |
81,441 | 84,773 | 88,179 | ||||||||||||
Other expenses |
31 |
(145,480 | ) | (171,575 | ) | (113,575 | ) | |||||||||
|
|
|
|
|
|
|||||||||||
Profit before income tax |
10,236,718 | 6,237,037 | 2,432,639 | |||||||||||||
Income tax expense |
32 |
2,915,323 | 1,478,123 | 423,561 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Profit for the period |
7,321,395 | 4,758,914 | 2,009,078 | |||||||||||||
Other comprehensive income (loss) |
||||||||||||||||
Item that will never be reclassified to profit or loss: |
||||||||||||||||
Remeasurements of defined benefit liability, net of tax |
21 |
22,612 | 1,266 | (90,211 | ) | |||||||||||
Items that are or may be reclassified to profit or loss: |
||||||||||||||||
Foreign operations – foreign currency translation differences, net of tax |
25 |
800,810 | (47,407 | ) | 150,037 | |||||||||||
Gain (loss) on valuation of derivatives, net of tax |
23,25 |
17,103 | (417 | ) | 12,753 | |||||||||||
Equity-accounted investees – share of other comprehensive income (loss), net of tax |
11,25 |
90,874 | (60,820 | ) | 21,444 | |||||||||||
|
|
|
|
|
|
|||||||||||
Other comprehensive income (loss) for the period, net of tax |
931,399 | (107,378 | ) | 94,023 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income for the period |
₩ | 8,252,794 | 4,651,536 | 2,103,101 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Profit or loss attributable to: |
||||||||||||||||
Owners of the Parent Company |
₩ | 7,309,517 | 4,755,102 | 2,005,975 | ||||||||||||
Non-controlling interests |
11,878 | 3,812 | 3,103 | |||||||||||||
Total comprehensive income attributable to: |
||||||||||||||||
Owners of the Parent Company |
8,237,804 | 4,649,850 | 2,099,648 | |||||||||||||
Non-controlling interests |
14,990 | 1,686 | 3,453 | |||||||||||||
Earnings per share |
||||||||||||||||
Basic earnings per share (in won) |
33 |
10,653 | 6,952 | 2,933 | ||||||||||||
Diluted earnings per share (in won) |
33 |
10,649 | 6,950 | 2,932 |
Attributable to owners of the Parent Company |
||||||||||||||||||||||||||||||||||||
Notes |
Capital stock |
Capital surplus |
Other equity |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 |
₩ | 3,657,652 | 4,143,736 | (2,506,451 | ) | (482,819 | ) | 42,033,601 | 46,845,719 | 6,612 | 46,852,331 | |||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | 2,005,975 | 2,005,975 | 3,103 | 2,009,078 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
25 |
— | — | — | 183,884 | (90,211 | ) | 93,673 | 350 | 94,023 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income |
— | — | — | 183,884 | 1,915,764 | 2,099,648 | 3,453 | 2,103,101 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners of the Parent Company |
||||||||||||||||||||||||||||||||||||
Increase of non-controlling interests |
— | — | — | — | — | — | 4,715 | 4,715 | ||||||||||||||||||||||||||||
Dividends paid |
26 |
— | — | — | — | (1,026,003 | ) | (1,026,003 | ) | — | (1,026,003 | ) | ||||||||||||||||||||||||
Share-based payment transactions |
37 |
— | — | 1,738 | — | — | 1,738 | — | 1,738 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total transactions with owners of the Parent Company |
— | — | 1,738 | — | (1,026,003 | ) | (1,024,265 | ) | 4,715 | (1,019,550 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2019 |
₩ | 3,657,652 | 4,143,736 | (2,504,713 | ) | (298,935 | ) | 42,923,362 | 47,921,102 | 14,780 | 47,935,882 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at January 1, 2020 |
₩ | 3,657,652 | 4,143,736 | (2,504,713 | ) | (298,935 | ) | 42,923,362 | 47,921,102 | 14,780 | 47,935,882 | |||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | 4,755,102 | 4,755,102 | 3,812 | 4,758,914 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
25 |
— | — | — | (106,518 | ) | 1,266 | (105,252 | ) | (2,126 | ) | (107,378 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income |
— | — | — | (106,518 | ) | 4,756,368 | 4,649,850 | 1,686 | 4,651,536 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners of the Parent Company |
||||||||||||||||||||||||||||||||||||
Increase of non-controlling interests |
— | — | — | — | — | — | 4,090 | 4,090 | ||||||||||||||||||||||||||||
Dividends paid |
26 |
— | — | — | — | (684,002 | ) | (684,002 | ) | — | (684,002 | ) | ||||||||||||||||||||||||
Share-based payment transactions |
37 |
— | — | 1,591 | — | — | 1,591 | — | 1,591 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total transactions with owners of the Parent Company |
— | — | 1,591 | — | (684,002 | ) | (682,411 | ) | 4,090 | (678,321 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2020 |
₩ | 3,657,652 | 4,143,736 | (2,503,122 | ) | (405,453 | ) | 46,995,728 | 51,888,541 | 20,556 | 51,909,097 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Parent Company |
||||||||||||||||||||||||||||||||||||
Notes |
Capital stock |
Capital surplus |
Other equity |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 |
₩ | 3,657,652 | 4,143,736 | (2,503,122 | ) | (405,453 | ) | 46,995,728 | 51,888,541 | 20,556 | 51,909,097 | |||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Profit for the ten-month period |
— | — | — | — | 7,309,517 | 7,309,517 | 11,878 | 7,321,395 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
25 |
— | — | — | 905,675 | 22,612 | 928,287 | 3,112 | 931,399 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total comprehensive income |
— | — | — | 905,675 | 7,332,129 | 8,237,804 | 14,990 | 8,252,794 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Transactions with owners of the Parent Company |
||||||||||||||||||||||||||||||||||||
Dividends paid |
— | — | — | — | (800,282 | ) | (800,282 | ) | — | (800,282 | ) | |||||||||||||||||||||||||
Disposal of treasury stock |
26 |
— | 191,247 | 206,308 | — | — | 397,555 | — | 397,555 | |||||||||||||||||||||||||||
Share-based payment transactions |
37 |
— | (340 | ) | 1,828 | — | — | 1,488 | — | 1,488 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total transactions with owners of the Parent Company |
— | 190,907 | 208,136 | — | (800,282 | ) | (401,239 | ) | — | (401,239 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at October 31, 2021 |
₩ | 3,657,652 | 4,334,643 | (2,294,986 | ) | 500,222 | 53,527,575 | 59,725,106 | 35,546 | 59,760,652 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
2021 |
2020 |
2019 |
|||||||||||||
(In millions of won) |
||||||||||||||||
Cash flows from operating activities |
||||||||||||||||
Cash generated from operating activities |
36 |
₩ | 17,041,459 | 12,916,771 | 11,895,834 | |||||||||||
Interest received |
14,338 | 40,635 | 30,543 | |||||||||||||
Interest paid |
(201,274 | ) | (288,565 | ) | (238,314 | ) | ||||||||||
Dividends received |
25,962 | 16,365 | 14,891 | |||||||||||||
Income tax paid |
(914,511 | ) | (370,635 | ) | (5,153,218 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Net cash provided by operating activities |
15,965,974 | 12,314,571 | 6,549,736 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Cash flows from investing activities |
||||||||||||||||
Net change in short-term financial instruments |
(180,388 | ) | (140,810 | ) | 225,447 | |||||||||||
Net change in short-term investment assets |
(3,901,661 | ) | (115,122 | ) | 4,164,793 | |||||||||||
Decrease in other financial assets |
211 | 773 | — | |||||||||||||
Increase in other financial assets |
(29,270 | ) | (205 | ) | (627 | ) | ||||||||||
Collection of loans and other receivables |
39,556 | 36,722 | 13,057 | |||||||||||||
Increase in loans and other receivables |
(69,291 | ) | (238,727 | ) | (57,482 | ) | ||||||||||
Proceeds from disposal of long-term investment assets |
21,022 | 708 | 4,316 | |||||||||||||
Acquisition of long-term investment assets |
(86,942 | ) | (93,846 | ) | (81,447 | ) | ||||||||||
Proceeds from disposal of property, plant and equipment |
61,117 | 59,089 | 53,840 | |||||||||||||
Acquisition of property, plant and equipment |
(10,457,621 | ) | (10,068,662 | ) | (13,920,244 | ) | ||||||||||
Proceeds from disposal of intangible assets |
2,073 | 695 | 183 | |||||||||||||
Acquisition of intangible assets |
(780,876 | ) | (800,729 | ) | (673,356 | ) | ||||||||||
Proceeds from business transfer |
3,000 | 2,958 | — | |||||||||||||
Receipt of government grants |
7 | — | — | |||||||||||||
Acquisition of investments in associates |
(40,062 | ) | (483,237 | ) | (176,954 | ) | ||||||||||
Net cash outflow from business combination |
— | — | (2,462 | ) | ||||||||||||
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
(15,419,125 | ) | (11,840,393 | ) | (10,450,936 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Cash flows from financing activities |
||||||||||||||||
Proceeds from borrowings |
36 |
5,230,157 | 5,173,016 | 9,833,882 | ||||||||||||
Repayments of borrowings |
36 |
(2,975,415 | ) | (3,921,310 | ) | (4,585,425 | ) | |||||||||
Payments of lease liabilities |
36 |
(264,409 | ) | (319,740 | ) | (390,501 | ) | |||||||||
Proceeds from disposal of treasury shares |
7,761 | — | — | |||||||||||||
Dividends paid |
(800,282 | ) | (684,002 | ) | (1,026,003 | ) | ||||||||||
Increase of non-controlling interests |
— | 4,090 | 4,715 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Net cash provided by financing activities |
1,197,812 | 252,054 | 3,836,668 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Effect of movements in exchange rates on cash and cash equivalents |
154,102 | (56,313 | ) | 21,283 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Net increase (decrease) in cash and cash equivalents |
1,898,763 | 669,919 | (43,249 | ) | ||||||||||||
Cash and cash equivalents at beginning of the period |
2,975,989 | 2,306,070 | 2,349,319 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of the period |
₩ | 4,874,752 | 2,975,989 | 2,306,070 | ||||||||||||
|
|
|
|
|
|
Shareholder |
Number of shares |
Percentage of ownership (%) |
||||||
SK Telecom Co., Ltd. 1 |
146,100,000 | 20.07 | ||||||
Other investors |
541,520,673 | 74.38 | ||||||
Treasury shares |
40,381,692 | 5.55 | ||||||
|
|
|
|
|||||
728,002,365 | 100.00 | |||||||
|
|
|
|
1 |
The largest shareholder of the Parent Company changed to SK Square Co., Ltd. on November 2, 2021, as SK Square Co., Ltd., a new spin-off corporation established by SK Telecom Co., Ltd., succeeded the entire shares of the Parent Company held by SK Telecom Co., Ltd. |
Ownership (%) |
||||||||||||
Company |
Location |
Business |
2021 |
2020 |
||||||||
SK hyeng Inc. |
Korea | Construction and service | 100.00 | 100.00 | ||||||||
SK hystec Inc. |
Korea | Business support and service | 100.00 | 100.00 | ||||||||
Happymore Inc. |
Korea | Manufacturing cleanroom suits and cleaning |
100.00 | 100.00 | ||||||||
SK hynix system ic Inc. |
Korea | Semiconductor manufacturing and sales |
100.00 | 100.00 | ||||||||
HappyNarae Co., Ltd. |
Korea | Industrial material supply | 100.00 | 100.00 | ||||||||
SK hynix America Inc. |
U.S.A. | Semiconductor sales | 97.74 | 97.74 | ||||||||
SK hynix Deutschland GmbH |
Germany | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Asia Pte. Ltd. |
Singapore | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Semiconductor Hong Kong Ltd. |
Hong Kong | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix U.K. Ltd. |
U.K. | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Semiconductor Taiwan Inc. |
Taiwan | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Japan Inc. |
Japan | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Semiconductor (Shanghai) Co., Ltd. |
China | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Semiconductor India Private Ltd. 1 |
India | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix (Wuxi) Semiconductor Sales Ltd. |
China | Semiconductor sales | 100.00 | 100.00 | ||||||||
SK hynix Semiconductor (China) Ltd. |
China | Semiconductor manufacturing |
100.00 | 100.00 | ||||||||
SK hynix Semiconductor (Chongqing) Ltd. 2 |
China | Semiconductor manufacturing |
100.00 | 100.00 | ||||||||
SK hynix Italy S.r.l |
Italy | Semiconductor research and development |
100.00 | 100.00 | ||||||||
SK hynix memory solutions America Inc. |
U.S.A. | Semiconductor research and development |
100.00 | 100.00 | ||||||||
SK hynix memory solutions Taiwan Ltd. |
Taiwan | Semiconductor research and development |
100.00 | 100.00 | ||||||||
SK hynix memory solutions Eastern Europe LLC. |
Belarus | Semiconductor research and development |
100.00 | 100.00 | ||||||||
SK APTECH Ltd. |
Hong Kong | Overseas investment | 100.00 | 100.00 | ||||||||
SK hynix Ventures Hong Kong Limited |
Hong Kong | Overseas investment | 100.00 | 100.00 | ||||||||
SK hynix (Wuxi) Investment Ltd. 3 |
China | Overseas investment | 100.00 | 100.00 | ||||||||
SK hynix (Wuxi) Industry Development Ltd. 4 |
China | Foreign hospital construction |
100.00 | 100.00 | ||||||||
SK hynix Happiness (Wuxi) Hospital Management Ltd. 4 |
China | Foreign hospital operation | 70.00 | 70.00 | ||||||||
SK hynix system ic (Wuxi) Co., Ltd. 5 |
China | Overseas Semiconductor manufacturing and sales |
100.00 | 100.00 | ||||||||
SK hynix cleaning (Wuxi) Ltd. 4 |
China | Building maintenance | 100.00 | 100.00 | ||||||||
SUZHOU HAPPYNARAE Co., Ltd. 6 |
China | Overseas industrial material supply |
100.00 | 100.00 |
Ownership (%) |
||||||||||||
Company |
Location |
Business |
2021 |
2020 |
||||||||
CHONGQING HAPPYNARAE Co., Ltd. 7 |
China | Overseas industrial material supply |
100.00 | 100.00 | ||||||||
SkyHigh Memory Limited 5 |
Hong Kong | Overseas Semiconductor manufacturing and sales |
60.00 | 60.00 | ||||||||
SK hynix (Wuxi) Education Technology Co.,Ltd. 4 |
China | Education | 100.00 | 100.00 | ||||||||
Gauss Labs Inc. |
U.S.A | Telecommunication of information |
100.00 | — | ||||||||
SkyHigh Memory China Limited 9 |
China | Semiconductor sales | 60.00 | — | ||||||||
SkyHigh Memory Limited Japan 9 |
Japan | Semiconductor sales | 60.00 | — | ||||||||
SK hynix NAND Product Solutions Corp. 8 |
U.S.A | Semiconductor sales | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Taiwan Co., Ltd. 8 |
Taiwan | Semiconductor R&D center and sales supporting |
100.00 | — | ||||||||
SK hynix NAND Product Solutions Canada Ltd. 8 |
Canada | Semiconductor R&D center | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Mexico, S. DE R.L. DE C.V. 8 |
Mexico | Semiconductor R&D center | 100.00 | — | ||||||||
SK hynix Semiconductor (Dalian) Co., Ltd. 8 |
China | Semiconductor manufacturing | 100.00 | — | ||||||||
SK hynix NAND Product Solutions UK Limited. 8 |
U.K. | Semiconductor Sales | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Israel Ltd. 8 |
Israel | Semiconductor sales supporting | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Japan G.K 8 |
Japan | Semiconductor sales | 100.00 | — | ||||||||
SK hynix NAND Product Solutions International LLC. 8 |
U.S.A. | Semiconductor sales | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Asia Pacific LLC. 8 |
U.S.A. | Semiconductor sales | 100.00 | — | ||||||||
SK hynix NAND Product Solutions Singapore Pte. Ltd. 8 |
Singapore | Semiconductor R&D center and sales supporting |
100.00 | — | ||||||||
SK hynix NAND Product Solutions Malaysia Sdn. Bhd. 8 |
Malaysia | Semiconductor sales supporting |
100.00 | — | ||||||||
SK hynix NAND Product Solutions Poland sp. z.o.o. 8 |
Poland | Semiconductor R&D center | 100.00 | — | ||||||||
SK hynix NAND Product Solutions (Beijing) Co., Ltd. 8 |
China | Semiconductor sales supporting |
100.00 | — | ||||||||
SK hynix NAND Product Solutions (Shanghai) Co., Ltd. 8 |
China | Semiconductor R&D center | 100.00 | — | ||||||||
SK hynix (Wuxi) Education Service Development Co., Ltd. 10 |
China | Education | 100.00 | — | ||||||||
HappyNarae America LLC 6 |
U.S.A | Overseas industrial material supply |
100.00 | — | ||||||||
HappyNarae Hungary Kft 6 |
Hungary | Overseas industrial material supply |
100.00 | — | ||||||||
SK hynix Ventures America LLC |
U.S.A | Overseas investing subsidiary |
100.00 | — | ||||||||
MMT (Money Market Trust) |
Korea | Money Market Trust | 100.00 | 100.00 |
1 |
Subsidiary of SK hynix Asia Pte. Ltd. |
2 |
Subsidiary of SK APTECH Ltd. |
3 |
Subsidiary of SK hynix Semiconductor (China) Ltd. |
4 |
Subsidiary of SK hynix (Wuxi) Investment Ltd. |
5 |
Subsidiary of SK hynix system ic Inc. |
6 |
Subsidiary of HappyNarae Co., Ltd. |
7 |
Subsidiary of SUZHOU HAPPYNARAE Co., Ltd. |
8 |
Established for the acquisition of NAND business division of Intel Corporation during the six-month period ended June 30, 2021. |
9 |
SkyHigh Memory China Limited and SkyHigh Memory Limited Japan were registered for establishment in March and May 2020, respectively and completed the establishment process by capital injections in April 2021. |
10 |
Subsidiary of SK hynix (Wuxi) Education Technology Co., Ltd. |
Type |
Company |
Description | ||
Addition |
SkyHigh Memory China Limited | Newly established | ||
Addition |
SkyHigh Memory Limited Japan | Newly established | ||
Addition |
SK hynix NAND Product Solutions Corp. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Taiwan Co., Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Canada Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Mexico, S. DE R.L. DE C.V. | Newly established | ||
Addition |
SK hynix Semiconductor (Dalian) Co., Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions UK Limited | Newly established | ||
Addition |
SK hynix NAND Product Solutions Israel Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Japan G.K. | Newly established | ||
Addition |
SK hynix NAND Product Solutions International LLC | Newly established | ||
Addition |
SK hynix NAND Product Solutions Asia Pacific LLC | Newly established | ||
Addition |
SK hynix NAND Product Solutions Singapore Pte. Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Malaysia Sdn. Bhd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions Poland sp. z.o.o. | Newly established | ||
Addition |
SK hynix NAND Product Solutions (Beijing) Co., Ltd. | Newly established | ||
Addition |
SK hynix NAND Product Solutions (Shanghai) Co., Ltd. | Newly established | ||
Addition |
SK hynix (Wuxi) Education Service Development Co., Ltd. | Newly established | ||
Addition |
HappyNarae America LLC | Newly established | ||
Addition |
HappyNarae Hungary Kft | Newly established | ||
Addition |
SK hynix Ventures America LLC | Newly established |
2021 |
2020 |
|||||||||||||||||||||||
Assets |
Liabilities |
Equity |
Assets |
Liabilities |
Equity |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
SK hynix system ic Inc. |
₩ | 1,155,469 | 383,426 | 772,043 | 998,154 | 368,517 | 629,636 | |||||||||||||||||
SK hynix America Inc. |
3,626,670 | 3,157,080 | 469,590 | 2,722,417 | 2,330,715 | 391,702 | ||||||||||||||||||
SK hynix Asia Pte. Ltd. |
906,789 | 815,308 | 91,481 | 284,115 | 197,442 | 86,673 | ||||||||||||||||||
SK hynix Semiconductor Hong Kong Ltd. |
436,517 | 277,758 | 158,759 | 282,273 | 134,019 | 148,254 | ||||||||||||||||||
SK hynix U.K. Ltd. |
386,978 | 367,378 | 19,600 | 303,729 | 283,833 | 19,896 | ||||||||||||||||||
SK hynix Semiconductor Taiwan Inc. |
333,517 | 306,768 | 26,749 | 273,651 | 247,895 | 25,756 | ||||||||||||||||||
SK hynix Japan Inc. |
376,231 | 299,721 | 76,510 | 348,336 | 278,622 | 69,714 | ||||||||||||||||||
SK hynix (Wuxi) Semiconductor Sales Ltd. |
1,832,638 | 1,543,348 | 289,290 | 1,250,087 | 1,024,006 | 226,081 | ||||||||||||||||||
SK hynix Semiconductor (China) Ltd. |
12,706,152 | 7,047,555 | 5,658,597 | 11,862,866 | 6,685,079 | 5,177,787 | ||||||||||||||||||
SK hynix Semiconductor (Chongqing) Ltd. |
1,064,176 | 341,413 | 722,763 | 920,531 | 317,216 | 603,315 | ||||||||||||||||||
HappyNarae Co., Ltd. |
136,439 | 77,947 | 58,492 | 171,026 | 116,728 | 54,298 |
2021 |
||||||||||||
Revenue |
Profit (Loss) |
Total comprehensive income (loss) |
||||||||||
(In millions of won) |
||||||||||||
SK hynix system ic Inc. |
₩ | 600,996 | 145,211 | 145,082 | ||||||||
SK hynix America Inc. |
13,133,432 | 46,293 | 46,293 | |||||||||
SK hynix Asia Pte. Ltd. |
2,626,853 | (1,764 | ) | (1,764 | ) | |||||||
SK hynix Semiconductor Hong Kong Ltd. |
2,103,667 | (354 | ) | (354 | ) | |||||||
SK hynix U.K. Ltd. |
1,005,271 | (1,771 | ) | (1,771 | ) | |||||||
SK hynix Semiconductor Taiwan Inc. |
2,386,011 | 2,931 | 2,931 | |||||||||
SK hynix Japan Inc. |
604,054 | 8,377 | 8,377 | |||||||||
SK hynix (Wuxi) Semiconductor Sales Ltd. |
10,544,302 | 39,704 | 39,704 | |||||||||
SK hynix Semiconductor (China) Ltd. |
3,883,534 | 2,199 | 2,199 | |||||||||
SK hynix Semiconductor (Chongqing) Ltd. |
792,505 | 59,968 | 59,968 | |||||||||
HappyNarae Co., Ltd. |
709,047 | 4,195 | 4,195 |
2020 |
||||||||||||
Revenue |
Profit (Loss) |
Total comprehensive income (Loss) |
||||||||||
(In millions of won) |
||||||||||||
SK hynix system ic Inc. |
₩ | 702,979 | 97,317 | 95,903 | ||||||||
SK hynix America Inc. |
12,761,911 | 53,448 | 53,448 | |||||||||
SK hynix Asia Pte. Ltd. |
1,858,091 | 3,055 | 3,055 | |||||||||
SK hynix Semiconductor Hong Kong Ltd. |
1,746,160 | 6,320 | 6,320 | |||||||||
SK hynix U.K. Ltd. |
994,299 | 1,331 | 1,331 | |||||||||
SK hynix Semiconductor Taiwan Inc. |
1,917,103 | 4,657 | 4,657 | |||||||||
SK hynix Japan Inc. |
551,890 | (181 | ) | (212 | ) | |||||||
SK hynix (Wuxi) Semiconductor Sales Ltd. |
10,423,701 | 90,303 | 90,303 | |||||||||
SK hynix Semiconductor (China) Ltd. |
3,936,769 | 484,677 | 484,677 | |||||||||
SK hynix Semiconductor (Chongqing) Ltd. |
699,558 | 73,048 | 73,048 | |||||||||
HappyNarae Co., Ltd. |
981,466 | 4,314 | 4,475 | |||||||||
2019 |
||||||||||||
Revenue |
Profit |
Total comprehensive income |
||||||||||
(In millions of won) |
||||||||||||
SK hynix system ic Inc. |
₩ | 661,511 | 76,195 | 76,400 | ||||||||
SK hynix America Inc. |
8,353,658 | 47,947 | 47,947 | |||||||||
SK hynix Asia Pte. Ltd. |
1,662,315 | 1,965 | 1,965 | |||||||||
SK hynix Semiconductor Hong Kong Ltd. |
1,579,680 | 2,493 | 2,493 | |||||||||
SK hynix U.K. Ltd. |
907,945 | 1,057 | 1,057 | |||||||||
SK hynix Semiconductor Taiwan Inc. |
1,455,320 | 8,127 | 8,127 | |||||||||
SK hynix Japan Inc. |
672,393 | 701 | 700 | |||||||||
SK hynix (Wuxi) Semiconductor Sales Ltd. |
10,882,152 | 94,768 | 94,768 | |||||||||
SK hynix Semiconductor (China) Ltd. |
3,177,415 | 18,551 | 18,551 | |||||||||
SK hynix Semiconductor (Chongqing) Ltd. |
477,849 | 39,102 | 39,102 | |||||||||
HappyNarae Co., Ltd. |
1,107,524 | 8,473 | 8,162 |
• | derivative financial instruments are measured at fair value |
• | financial instruments at fair value through profit or loss and other comprehensive income or loss are measured at fair value |
• | assets or 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 |
(i) |
Fair value of financial instruments |
(ii) |
Corporate income tax |
• | Most likely: the single most likely amount within the range of possible outcomes |
• | Expected value: the sum of all amounts in the range of possible outcomes multiplied by each probability |
(iii) |
Provisions |
(iv) |
Net defined benefit liabilities |
(v) |
Inventories |
(vi) |
Revenue recognition |
(vii) |
Development cost |
(viii) |
Depreciation of property, plant, and equipment and Intangible assets |
(ix) |
Goodwill |
(x) |
Lease |
• | If a significant penalty is to be paid to terminate (not to extend), it is generally quite certain that the Group exercises the option to extend (not to extend). |
• | It is generally fairly certain that the Group exercises the option to extend (not exercise the option to terminate) if the lease is expected to have significant residual value. |
• | In other cases than the above, the Group will consider other factors, including the lease duration and costs, and the discontinuation required to replace the leased asset. |
• | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities |
• | Level 2: inputs other than quoted prices included within 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) |
• | it is held within a business model whose objective is to hold assets to collect contractual cash flow; and |
• | its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
• | it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and |
• | its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
• | the stated policies and objectives for the portfolio and the operation of those policies in practice; |
• | how the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel; |
• | the risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way in which those risks are managed; |
• | how managers of the business are compensated (e.g. whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected); and |
• | the frequency, volume and timing of sales of financial assets in prior periods, the reason for those sales and expectation about future sales activity for financial asset. |
• | contingent events that would change the amount or timing of cash flows; |
• | terms that may adjust the contractual coupon rate, including variable-rate features; |
• | prepayment and extension features; and |
• | terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features). |
Financial assets at FVTPL |
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. | |
Financial assets at amortized cost |
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. | |
Debt investments at FVOCI |
These assets are subsequently measured at fair value. Interest income is calculated using the effective interest method. Foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. | |
Equity investments at FVOCI |
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. |
• | Cash flow hedge |
• | financial assets measured at amortized costs; and |
• | contract assets. |
• | credit risk of debt instruments is low at the end of reporting date |
• | credit risk has not increased significantly since the initial recognition of debt investment (lifetime ECL: ECL that resulted from all possible default events over the expected life of a financial instrument) |
• | significant financial difficulty of the issuer or borrower; |
• | a breach of contract, such as default or delinquency in interest or principal payments; |
• | the Group, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the Group would not otherwise consider; |
• | it becoming probable that the borrower will enter bankruptcy or other financial reorganization; or |
• | the disappearance of an active market for the financial asset because of financial difficulties |
Useful lives (years) |
||||
Buildings |
10 - 50 | |||
Structures |
10 - 20 | |||
Machinery |
5 - 15 | |||
Vehicles |
5 - 10 | |||
Others |
5 - 10 |
Useful lives (years) | ||
Industrial rights |
5 - 10 | |
Development costs |
2 | |
Other intangible assets 1 |
4 - 20 |
1 |
Other intangible assets include royalty payments with useful lives of 4 to 20 years. |
• | fixed payments (including in-substance fixed payments) |
• | variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date |
• | amounts expected to be payable under a residual value guarantee |
• | the exercise price under a purchase option that the Group is reasonably certain to exercise |
• | lease payments in an optional renewal period, if the Group is reasonably certain to exercise extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. |
• | a change in the lease term or a change in circumstances or significant events that result in a change in the assessment of the exercise of the purchase option. In such cases, the lease liability is remeasured by discounting the modified lease payment at the revised discount rate; |
• | the lease payment changes due to changes in the index or rate (interest rate) or the amount expected to be paid according to the residual value guarantee. In such cases, the lease liability measures the modified lease fee again by discounting it at an unchanged discount rate. However, if a change in the variable interest rate causes a change in the lease payments, the revised discount rate that reflects the change in interest rates is used; or |
• | the lease agreement changes and is not accounted for as a separate lease. In such cases, the lease liability is remeasured by discounting the modified lease payment at the revised discount rate as of the effective date of the lease change, based on the lease term of the modified lease. |
• | Interest income; |
• | Interest expense; |
• | Dividend income; |
• | The net gain or loss on financial assets at fair value through profit or loss; |
• | Gain or loss on foreign exchange (currency) translation for financial asset and liabilities; |
• | Impairment losses and reversals on investment in debt securities carried at amortized cost method; and |
• | The gain on the remeasurement to fair value of any pre-existing interest in an acquire in a business combination |
• | The gross carrying amount of the financial asset; or |
• | The amortized cost of the financial liability |
(i) | Most likely: the single most likely amount within the range of possible outcomes |
(ii) | Expected value: the sum of all amounts in the range of possible outcomes multiplied by each probability. |
• | IFRS 1101 First-time Adoption of Korean International Financial Reporting Standards : Subsidiaries that are first-time adopters |
• | IFRS 1109 Financial Instruments : Fees in the ‘10% Test’ for Derecognition of Financial Liabilities |
• | IFRS 1116 Lease : Lease Incentives |
• | IFRS 1041 Agriculture : Fair Value Measurement |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Korea |
₩ | 38,387,308 | 35,954,666 | |||||
China |
10,780,547 | 10,302,196 | ||||||
Asia (other than China) |
17,568 | 20,397 | ||||||
U.S.A. |
487,969 | 373,767 | ||||||
Europe |
15,599 | 13,868 | ||||||
|
|
|
|
|||||
₩ | 49,688,991 | 46,664,894 | ||||||
|
|
|
|
October 31, 2021 |
||||||||||||||||
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income or loss |
Financial assets at amortized cost |
Total |
|||||||||||||
(In millions of won) |
||||||||||||||||
Cash and cash equivalents |
₩ | — | — | 4,874,752 | 4,874,752 | |||||||||||
Short-term financial instruments |
222,500 | — | 376,625 | 599,125 | ||||||||||||
Short-term investment assets |
5,494,158 | — | — | 5,494,158 | ||||||||||||
Trade receivables 1 |
— | 660,211 | 6,462,823 | 7,123,034 | ||||||||||||
Loans and other receivables |
— | — | 405,857 | 405,857 | ||||||||||||
Other financial assets |
23,028 | — | 29,483 | 52,511 | ||||||||||||
Long-term investment assets |
6,626,956 | — | — | 6,626,956 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ | 12,366,642 | 660,211 | 12,149,540 | 25,176,393 | ||||||||||||
|
|
|
|
|
|
|
|
1 |
The Group transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements as all the risks and rewards are substantially transferred. Accordingly, the Group recognized gain or loss on disposal of trade receivables. |
December 31, 2020 |
||||||||||||||||
Financial assets at fair value through profit or loss |
Financial assets at fair value through other comprehensive income or loss |
Financial assets at amortized cost |
Total |
|||||||||||||
(In millions of won) |
||||||||||||||||
Cash and cash equivalents |
₩ | — | — | 2,975,989 | 2,975,989 | |||||||||||
Short-term financial instruments |
227,500 | — | 209,208 | 436,708 | ||||||||||||
Short-term investment assets |
1,535,518 | — | — | 1,535,518 | ||||||||||||
Trade receivables 1 |
— | 512,458 | 4,418,864 | 4,931,322 | ||||||||||||
Loans and other receivables |
— | — | 144,783 | 144,783 | ||||||||||||
Other financial assets |
— | — | 383 | 383 | ||||||||||||
Long-term investment assets |
6,139,627 | — | — | 6,139,627 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ | 7,902,645 | 512,458 | 7,749,227 | 16,164,330 | ||||||||||||
|
|
|
|
|
|
|
|
1 |
The Group transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements as all the risks and rewards are substantially transferred. Accordingly, the Group recognized gain or loss on disposal of trade receivables. |
October 31, 2021 |
||||||||||||
Financial liabilities measured at amortized cost |
Other financial liabilities |
Total |
||||||||||
(In millions of won) |
||||||||||||
Trade payables |
₩ | 1,171,300 | — | 1,171,300 | ||||||||
Other payables |
2,639,321 | — | 2,639,321 | |||||||||
Other non-trade payables |
2,176,940 | — | 2,176,940 | |||||||||
Borrowings |
14,140,376 | — | 14,140,376 | |||||||||
Lease liabilities |
1,561,484 | — | 1,561,484 | |||||||||
Other financial liabilities |
4,496 | 1,173 | 5,669 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 21,693,917 | 1,173 | 21,695,090 | |||||||||
|
|
|
|
|
|
|||||||
December 31, 2020 |
||||||||||||
Financial liabilities measured at amortized cost |
Other financial liabilities |
Total |
||||||||||
(In millions of won) |
||||||||||||
Trade payables |
₩ | 1,046,159 | — | 1,046,159 | ||||||||
Other payables |
2,621,305 | — | 2,621,305 | |||||||||
Other non-trade payables |
1,397,116 | — | 1,397,116 | |||||||||
Borrowings |
11,251,648 | — | 11,251,648 | |||||||||
Lease liabilities |
1,643,716 | — | 1,643,716 | |||||||||
Other financial liabilities |
3,958 | 84,707 | 88,665 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 17,963,902 | 84,707 | 18,048,609 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Financial assets at amortized cost |
||||||||||||
Interest income |
₩ | 18,496 | 27,872 | 30,062 | ||||||||
Foreign exchange differences |
649,633 | (959,065 | ) | 229,649 | ||||||||
Loss on disposal |
(125 | ) | — | — | ||||||||
Impairment |
(868 | ) | (555 | ) | — | |||||||
Reversal of impairment |
— | 5 | 85 | |||||||||
|
|
|
|
|
|
|||||||
667,136 | (931,743 | ) | 259,796 | |||||||||
Financial assets at fair value through profit or loss |
||||||||||||
Dividend income |
7,875 | 1,325 | 429 | |||||||||
Gain on disposal |
52,903 | 27,510 | 59,217 | |||||||||
Gain (loss) on valuation |
11,150 | 1,736,345 | (227,423 | ) | ||||||||
Foreign exchange differences |
(83,298 | ) | (40,222 | ) | 209,563 | |||||||
|
|
|
|
|
|
|||||||
(11,370 | ) | 1,724,958 | 41,786 | |||||||||
Financial liabilities measured at amortized cost |
||||||||||||
Interest expenses |
(218,076 | ) | (253,468 | ) | (245,440 | ) | ||||||
Foreign exchange differences |
(227,930 | ) | 809,001 | (339,834 | ) | |||||||
|
|
|
|
|
|
|||||||
(446,006 | ) | 555,533 | (585,274 | ) | ||||||||
Financial liabilities measured at fair value through profit or loss |
||||||||||||
Loss on valuation |
(1,704 | ) | (1,681 | ) | — | |||||||
|
|
|
|
|
|
|||||||
₩ | 208,056 | 1,347,067 | (283,692 | ) | ||||||||
|
|
|
|
|
|
Assets |
Liabilities |
|||||||||||||||
Foreign currencies |
Korean won equivalent |
Foreign currencies |
Korean won equivalent |
|||||||||||||
(In millions of won and millions of foreign currencies) |
||||||||||||||||
USD |
14,671 | ₩ | 17,189,434 | 14,254 | ₩ | 16,701,257 | ||||||||||
JPY |
348 | 3,593 | 46,901 | 483,851 | ||||||||||||
CNY |
— | 82 | 24 | 4,354 | ||||||||||||
EUR |
9 | 11,718 | 178 | 243,349 |
If strengthening by 10% |
If weakening by 10% |
|||||||
(In millions of won) |
||||||||
USD |
₩ | 165,519 | (165,519 | ) | ||||
JPY |
(48,026 | ) | 48,026 | |||||
CNY |
(427 | ) | 427 | |||||
EUR |
(23,163 | ) | 23,163 |
October 31, 2021 |
||||||||||||||||||||
Less than 1 year |
1 – 2 years |
2 – 5 years |
More than 5 years |
Total |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Borrowings 1 |
₩ | 2,984,990 | 2,876,617 | 6,736,101 | 2,512,410 | 15,110,118 | ||||||||||||||
Lease liabilities |
429,548 | 271,723 | 436,883 | 616,039 | 1,754,193 | |||||||||||||||
Trade payables |
1,171,300 | — | — | — | 1,171,300 | |||||||||||||||
Other payables |
2,378,123 | 63,945 | 175,208 | 42,181 | 2,659,457 | |||||||||||||||
Other non-trade payables |
2,112,716 | 11,073 | 11,565 | — | 2,135,354 | |||||||||||||||
Derivative Liabilities |
1,069 | 276 | — | — | 1,345 | |||||||||||||||
Other financial liabilities |
127,724 | — | — | — | 127,724 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 9,205,470 | 3,223,634 | 7,359,757 | 3,170,630 | 22,959,491 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
The cash flow includes payment of interest under terms and conditions of borrowing. |
December 31, 2020 |
||||||||||||||||||||
Less than 1 year |
1 – 2 years |
2 – 5 years |
More than 5 years |
Total |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Borrowings 1 |
₩ | 3,309,009 | 2,317,331 | 5,136,314 | 1,121,480 | 11,884,134 | ||||||||||||||
Lease liabilities |
352,201 | 250,840 | 391,356 | 848,315 | 1,842,712 | |||||||||||||||
Trade payables |
1,046,159 | — | — | — | 1,046,159 | |||||||||||||||
Other payables |
2,348,909 | 56,902 | 160,488 | 78,336 | 2,644,635 | |||||||||||||||
Other non-trade payables |
1,346,254 | 17,896 | 12,028 | — | 1,376,178 | |||||||||||||||
Derivative Liabilities |
(3,538 | ) | (3,839 | ) | 77,573 | 13,460 | 83,656 | |||||||||||||
Other financial liabilities |
117,106 | — | — | — | 117,106 | |||||||||||||||
Financial guarantee contract |
87,040 | — | — | — | 87,040 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 8,603,140 | 2,639,130 | 5,777,759 | 2,061,591 | 19,081,620 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
The cash flow includes payment of interest under terms and conditions of borrowing contracts. |
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Total liabilities (A) |
₩ | 24,956,670 | 19,264,756 | |||||
Total equity (B) |
59,760,652 | 51,909,097 | ||||||
Cash and cash equivalents; short-term financial instruments; |
10,968,035 | 4,948,215 | ||||||
Total borrowings (D) |
14,140,376 | 11,251,648 | ||||||
Debt-to-equity |
41.76% | 37.11% | ||||||
Net borrowing ratio (D-C)/B |
5.31% | 12.14% |
• | Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities |
• | Level 2: inputs other than quoted prices included within 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) |
October 31, 2021 |
||||||||||||||||||||
Carrying amounts |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Financial assets measured at fair value |
||||||||||||||||||||
Short-term financial instruments |
₩ | 222,500 | — | — | 222,500 | 222,500 | ||||||||||||||
Short-term investment asset |
5,494,158 | — | 5,494,158 | — | 5,494,158 | |||||||||||||||
Trade receivables 1 |
660,211 | — | 660,211 | — | 660,211 | |||||||||||||||
Long-term investment asset |
6,626,956 | — | — | 6,626,956 | 6,626,956 | |||||||||||||||
Other financial assets |
23,028 | — | 23,028 | — | 23,028 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
13,026,853 | — | 6,177,397 | 6,849,456 | 13,026,853 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial assets not measured at fair value |
||||||||||||||||||||
Cash and cash equivalents 2 |
4,874,752 | — | — | — | — | |||||||||||||||
Short-term financial instruments 2 |
376,625 | — | — | — | — | |||||||||||||||
Trade receivables 2 |
6,462,823 | — | — | — | — | |||||||||||||||
Loans and other receivables 2 |
405,857 | — | — | — | — | |||||||||||||||
Other financial assets 2 |
29,483 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
12,149,540 | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total financial asset |
25,176,393 | — | 6,177,397 | 6,849,456 | 13,026,853 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities measured at fair value |
||||||||||||||||||||
Other financial liabilities |
1,173 | — | 1,173 | — | 1,173 | |||||||||||||||
Financial liabilities not measured at fair value |
||||||||||||||||||||
Trade payables 2 |
1,171,300 | — | — | — | — | |||||||||||||||
Other payables 2 |
2,639,321 | — | — | — | — | |||||||||||||||
Other non-trade payables2 |
2,176,940 | — | — | — | — | |||||||||||||||
Borrowings |
14,140,376 | — | 13,973,972 | — | 13,973,972 | |||||||||||||||
Lease liabilities 2 |
1,561,484 | — | — | — | — | |||||||||||||||
Other financial liabilities 2 |
4,496 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
21,693,917 | — | 13,973,972 | — | 13,973,972 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total financial liabilities |
₩ | 21,695,090 | — | 13,975,145 | — | 13,975,145 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
The Group transferred some of the trade receivables and majority of the risks and rewards to the customer. Accordingly, the Group derecognized trade receivables from the financial statement on the date of assets transfer and recognized gain or loss on disposal of trade receivables. |
2 |
The Group did not include fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. |
December 31, 2020 |
||||||||||||||||||||
Carrying amounts |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Financial assets measured at fair value |
||||||||||||||||||||
Short-term financial instruments |
₩ | 227,500 | — | — | 227,500 | 227,500 | ||||||||||||||
Short-term investment asset |
1,535,518 | — | 1,535,518 | — | 1,535,518 | |||||||||||||||
Trade receivables 1 |
512,458 | — | 512,458 | — | 512,458 | |||||||||||||||
Long-term investment asset |
6,139,627 | — | — | 6,139,627 | 6,139,627 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
8,415,103 | — | 2,047,976 | 6,367,127 | 8,415,103 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial assets not measured at fair value |
||||||||||||||||||||
Cash and cash equivalents 2 |
2,975,989 | — | — | — | — | |||||||||||||||
Short-term financial instruments 2 |
209,208 | — | — | — | — | |||||||||||||||
Trade receivables 2 |
4,418,864 | — | — | — | — | |||||||||||||||
Loans and other receivables 2 |
144,783 | — | — | — | — | |||||||||||||||
Other financial assets 2 |
383 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
7,749,227 | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total financial asset |
16,164,330 | — | 2,047,976 | 6,367,127 | 8,415,103 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities measured at fair value |
||||||||||||||||||||
Other financial liabilities |
84,707 | — | 84,707 | — | 84,707 | |||||||||||||||
Financial liabilities not measured at fair value |
||||||||||||||||||||
Trade payables 2 |
1,046,159 | — | — | — | — | |||||||||||||||
Other payables 2 |
2,621,305 | — | — | — | — | |||||||||||||||
Other non-trade payables2 |
1,397,116 | — | — | — | — | |||||||||||||||
Borrowings |
11,251,648 | — | 11,372,509 | — | 11,372,509 | |||||||||||||||
Lease liabilities 2 |
1,643,716 | — | — | — | — | |||||||||||||||
Other financial liabilities 2 |
3,958 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
17,963,902 | — | 11,372,509 | — | 11,372,509 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total financial liabilities |
₩ | 18,048,609 | — | 11,457,216 | — | 11,457,216 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
The Group transferred some of the trade receivables and majority of the risks and rewards to the customer. Accordingly, the Group derecognized trade receivables from the financial statement on the date of assets transfer and recognized gain or loss on disposal of trade receivables. |
2 |
The Group did not include fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. |
Fair value |
Level |
Valuation Techniques |
||||||||||
(In millions of won) |
||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||
Short-term investment assets |
₩ | 5,494,158 | 2 | Present value technique | ||||||||
Long-term investment assets |
6,626,956 | 3 | Present value technique and others | |||||||||
Short-term financial instruments |
222,500 | 3 | Present value technique | |||||||||
Other financial assets |
23,028 | 2 | Present value technique | |||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||
Trade receivables |
660,211 | 2 | Present value technique | |||||||||
Financial liabilities at fair value through other comprehensive income |
||||||||||||
Other financial liabilities |
₩ | 1,173 | 2 | Present value technique |
Fair value |
Valuation Techniques |
Level 3 inputs |
Input Range |
|||||||||
(In millions of won) |
||||||||||||
Equity investment in SPC1 |
₩ |
3,823,456 |
|
Present value technique and option-pricing method |
Terminal growth rate | 0 | % | |||||
Discount rate (Weighted-average capital cost) | 7.2 | % | ||||||||||
Expected timing of liquidation of the SPC (years) | 2.58 | |||||||||||
Volatility | 41.3 | % | ||||||||||
Risk free rate | -0.10 | % | ||||||||||
SPC2 convertible bonds |
Present value technique | Terminal growth rate | 0 | % | ||||||||
2,521,342 | Discount rate (Weighted-average capital cost) | 7.2 | % |
Positive fluctuation |
Negative fluctuation |
|||||||
(In millions of won) |
||||||||
Equity investment in SPC1 1 |
₩ | 953,531 | ₩ | (760,371 | ) | |||
SPC2 convertible bonds 1 |
633,526 | (479,870 | ) |
1 |
The changes in fair value are calculated by increasing or decreasing the terminal growth rate and weighted-average capital costs, which are major unobservable inputs by 0.5%. |
Beginning Balance |
Acquisition |
Disposals |
Payments |
Gain on Valuation |
Foreign Exchange Difference |
Transfer 1 |
Ending Balance |
|||||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||||||
Financial assets: |
||||||||||||||||||||||||||||||||
Short-term Financial instruments |
₩ | 227,500 | — | (5,000 | ) | — | — | — | — | 222,500 | ||||||||||||||||||||||
Long-term investment assets |
6,139,627 | 88,258 | (5,475 | ) | — | 520,229 | (115,683 | ) | — | 6,626,956 |
October 31 2021 |
December 31, 2020 |
Description | ||||||||
(In millions of won) |
||||||||||
Short-term financial instruments |
₩ | 222,500 | 227,500 | Restricted for supporting small businesses | ||||||
8,253 | 8,434 | Pledged for consumption tax | ||||||||
178,200 | 84,419 | Guarantee deposits for repayments of borrowings | ||||||||
|
|
|
|
|||||||
408,953 | 320,353 | |||||||||
|
|
|
|
|||||||
Other financial assets |
28,790 | — | Deposits for the share purchase agreement | |||||||
11 | 11 | Bank overdraft guarantee deposit | ||||||||
614 | 305 | Others | ||||||||
|
|
|
|
|||||||
29,415 | 316 | |||||||||
|
|
|
|
|||||||
₩ | 438,368 | 320,669 | ||||||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Trade receivables |
₩ | 7,053,653 | 4,873,602 | |||||
Trade receivables to be collected from related parties |
69,381 | 57,720 | ||||||
|
|
|
|
|||||
₩ | 7,123,034 | 4,931,322 | ||||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Current |
||||||||
Other receivables |
₩ | 17,435 | 13,603 | |||||
Accrued income |
2,345 | 2,570 | ||||||
Short-term loans |
10,222 | 5,045 | ||||||
Short-term guarantee and other deposits |
35,005 | 47,976 | ||||||
|
|
|
|
|||||
65,007 | 69,194 | |||||||
|
|
|
|
|||||
Non-current |
||||||||
Long-term other receivables |
— | 2,977 | ||||||
Long-term loans |
292,454 | 37,838 | ||||||
Guarantee deposits |
48,163 | 34,558 | ||||||
Others |
233 | 216 | ||||||
|
|
|
|
|||||
340,850 | 75,589 | |||||||
|
|
|
|
|||||
₩ | 405,857 | 144,783 | ||||||
|
|
|
|
October 31,2021 |
||||||||||||
Gross amount |
Provision for impairment |
Carrying amount |
||||||||||
(In millions of won) |
||||||||||||
Trade receivables |
₩ | 7,123,952 | (918 | ) | 7,123,034 | |||||||
Current loans and other receivables |
66,282 | (1,275 | ) | 65,007 | ||||||||
Non-current loans and other receivables |
342,085 | (1,235 | ) | 340,850 | ||||||||
|
|
|
|
|
|
|||||||
₩ | 7,532,319 | (3,428 | ) | 7,528,891 | ||||||||
|
|
|
|
|
|
December 31,2020 |
||||||||||||
Gross amount |
Provision for impairment |
Carrying amount |
||||||||||
(In millions of won) |
||||||||||||
Trade receivables |
₩ | 4,931,366 | (44 | ) | 4,931,322 | |||||||
Current loans and other receivables |
70,472 | (1,278 | ) | 69,194 | ||||||||
Non-current loans and other receivables |
76,743 | (1,154 | ) | 75,589 | ||||||||
|
|
|
|
|
|
|||||||
₩ | 5,078,581 | (2,476 | ) | 5,076,105 | ||||||||
|
|
|
|
|
|
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 44 | 9 | |||||
Bad debt expense |
871 | 555 | ||||||
Write-off |
— | (517 | ) | |||||
Foreign exchange difference |
3 | (3 | ) | |||||
|
|
|
|
|||||
Ending balance |
₩ | 918 | 44 | |||||
|
|
|
|
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 1,278 | 1,280 | |||||
Reversal |
(3 | ) | (2 | ) | ||||
|
|
|
|
|||||
Ending balance |
₩ | 1,275 | 1,278 | |||||
|
|
|
|
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 1,154 | 1,162 | |||||
Reversal |
— | (3 | ) | |||||
Write-off |
— | 64 | ||||||
Foreign exchange difference |
81 | (69 | ) | |||||
|
|
|
|
|||||
Ending balance |
₩ | 1,235 | 1,154 | |||||
|
|
|
|
October 31, 2021 |
||||||||||||||||||||||||
Not impaired |
||||||||||||||||||||||||
Overdue |
||||||||||||||||||||||||
Not past due |
Less than 3 months |
Over 3 months and less than 6 months |
Over 6 months |
Impaired |
Total |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Trade receivables |
₩ | 7,123,034 | — | — | — | 918 | 7,123,952 | |||||||||||||||||
Current loans and other receivables |
65,007 | — | — | — | 1,275 | 66,282 | ||||||||||||||||||
Non-current loans and other receivables |
340,850 | — | — | — | 1,235 | 342,085 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ | 7,528,891 | — | — | — | 3,428 | 7,532,319 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
||||||||||||||||||||||||
Not impaired |
||||||||||||||||||||||||
Overdue |
||||||||||||||||||||||||
Not past due |
Less than 3 months |
Over 3 months and less than 6 months |
Over 6 months |
Impaired |
Total |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Trade receivables |
₩ | 4,931,328 | — | — | — | 38 | 4,931,366 | |||||||||||||||||
Current loans and other receivables |
69,194 | — | — | — | 1,278 | 70,472 | ||||||||||||||||||
Non-current loans and other receivables |
75,589 | — | — | — | 1,154 | 76,743 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ | 5,076,111 | — | — | — | 2,470 | 5,078,581 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Merchandise |
₩ | 2,519 | 2,173 | |||||
Finished goods |
1,420,798 | 1,078,967 | ||||||
Work-in-process |
4,088,176 | 3,584,955 | ||||||
Raw materials |
771,082 | 724,482 | ||||||
Supplies |
683,200 | 588,009 | ||||||
Goods in transit |
123,309 | 157,732 | ||||||
|
|
|
|
|||||
₩ | 7,089,084 | 6,136,318 | ||||||
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Inventories recognized as cost of sales |
₩ | 19,446,999 | 21,313,696 | 18,547,022 |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 420,985 | 647,498 | |||||
Charged to cost of sales |
65,093 | 79,560 | ||||||
Utilization upon sales |
(175,956 | ) | (306,072 | ) | ||||
|
|
|
|
|||||
Ending balance |
₩ | 310,122 | 420,986 | |||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Current |
||||||||
Advance payments |
₩ | 78,258 | 51,047 | |||||
Prepaid expenses |
216,573 | 145,298 | ||||||
Value added tax refundable |
348,450 | 235,602 | ||||||
Contract assets |
63,059 | 53,605 | ||||||
Others |
829 | 120 | ||||||
|
|
|
|
|||||
707,169 | 485,672 | |||||||
|
|
|
|
|||||
Non-current |
||||||||
Long-term advance payments |
37,351 | 36,985 | ||||||
Long-term prepaid expenses |
50,008 | 14,961 | ||||||
Others |
5,511 | 3,083 | ||||||
|
|
|
|
|||||
92,870 | 55,029 | |||||||
|
|
|
|
|||||
₩ | 800,039 | 540,701 | ||||||
|
|
|
|
Type |
Investee |
Location |
Business | |||
Associate |
Stratio, Inc. | U.S.A | Development and manufacture of semiconductor parts | |||
SK China Company Limited | China | Consulting and investment | ||||
Gemini Partners Pte. Ltd. | Singapore | Consulting | ||||
TCL Fund | China | Investment | ||||
SK South East Asia Investment Pte. Ltd. |
Singapore | Consulting and investment | ||||
Hushan Xinju (Chengdu) Venture Investment Center (Smartsource) | China | Venture Capital | ||||
Prume Social Farm, Co., Ltd. | Korea | Growing crops | ||||
Wuxi xinfa IC industry park., Ltd. | China | Developing Science-Technological Park | ||||
Magnus Private Investment Co., Ltd | Korea | Investment | ||||
L&S (No.10) Early Stage III Investment Association | Korea | Investment | ||||
SiFive Inc. | U.S.A | Design and manufacture of semiconductor | ||||
YD-SK-KDB |
Korea | Investment | ||||
Ningbo Zhongxin Venture Capital Partnership (Limited Partnership) | China | Investment | ||||
Jiangsu KVTS Semiconductor science and Technology Co Ltd. | China | Manufacture of semiconductor parts | ||||
Joint venture |
HITECH Semiconductor (Wuxi) Co., Ltd. | China | Manufacture of semiconductor parts | |||
Hystars Semiconductor (Wuxi) Co., Ltd. | China | Foundry factory construction | ||||
Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor | Korea | Investment | ||||
Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor |
Korea | Investment |
October 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||
Type |
Investee |
Owner ship (%) |
Net asset value |
Carrying amount |
Owner ship (%) |
Carrying amount |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||||
Associate |
Stratio, Inc. 1 |
9.35 | ₩ | 100 | 403 | 9.12 | ₩ | 407 | ||||||||||||||
SK China Company Limited 2 |
11.87 | 352,909 | 405,506 | 11.87 | 257,474 | |||||||||||||||||
Gemini Partners Pte. Ltd. | 20.00 | 2,254 | 2,254 | 20.00 | 1,771 | |||||||||||||||||
TCL Fund 1 |
11.05 | 11,871 | 12,305 | 11.05 | 11,538 | |||||||||||||||||
SK South East Asia Investment Pte. Ltd. | 20.00 | 363,109 | 363,109 | 20.00 | 325,006 | |||||||||||||||||
Hushan Xinju (Chengdu) Venture Investment Center (Smartsource) 2 |
16.67 | 8,563 | 8,564 | 16.67 | 7,970 | |||||||||||||||||
Prume Social Farm, Co., Ltd. 3 |
35.52 | 2,138 | 2,702 | 35.52 | 2,221 | |||||||||||||||||
Wuxi xinfa IC industry park., Ltd. 4 |
30.00 | 32,756 | 32,756 | 30.00 | 20,952 | |||||||||||||||||
Magnus Private Investment Co., Ltd. | 49.76 | 207,888 | 207,888 | 49.76 | 150,840 | |||||||||||||||||
L&S (No.10) Early Stage III Investment Association | 24.39 | 4,013 | 4,013 | 24.39 | 2,609 | |||||||||||||||||
SiFive Inc. 1 |
8.27 | 7,161 | 33,186 | 7.87 | 34,372 | |||||||||||||||||
YD-SK-KDB |
23.26 | 5,398 | 5,398 | 23.26 | 2,566 | |||||||||||||||||
Ningbo Zhongxin Venture Capital Partnership (Limited Partnership) 1,3 |
7.54 | 3,549 | 3,550 | — | — | |||||||||||||||||
Jiangsu KVTS Semiconductor science and Technology Co Ltd. 3 |
33.00 | 4,421 | 7,215 | — | — | |||||||||||||||||
Joint venture |
HITECH Semiconductor (Wuxi) Co., Ltd. 4 |
45.00 | 120,407 | 117,836 | 45.00 | 113,430 | ||||||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. 4 |
50.10 | 220,711 | 222,301 | 50.10 | 195,423 | |||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 4 |
33.33 | 24,629 | 24,629 | 33.33 | 24,818 | |||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor4 |
37.50 | 29,751 | 29,751 | 37.50 | 14,847 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
₩ | 1,401,628 | 1,483,366 | ₩ | 1,166,244 | ||||||||||||||||||
|
|
|
|
|
|
1 |
The Group is able to exercise significant influence through its right to appoint a director to the Board of Directors of each investee. Accordingly, the investments in these investees have been classified as associates. |
2 |
Management of the Group is able to exercise significant influence over the entity by participating Board of Directors. Accordingly, the investments in these investees have been classified as associates. |
3 |
Additional acquisition during the ten-month period ended October 31, 2021. |
4 |
The relevant contract stipulates that important matters have to be resolved unanimously. Accordingly, the Group has classified them as joint ventures. |
October 31, 2021 |
||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Transfer |
Share of profit (loss) |
Other equity movement |
Dividend |
Ending balance |
||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||
Stratio, Inc. |
₩ | 407 | — | — | (12 | ) | 8 | — | 403 | |||||||||||||||||||
SK China Company Limited |
257,474 | — | — | 119,944 | 28,088 | — | 405,506 | |||||||||||||||||||||
Gemini Partners Pte. Ltd. |
1,771 | — | — | 361 | 122 | — | 2,254 | |||||||||||||||||||||
TCL Fund |
11,538 | 680 | — | 110 | 1,106 | (1,129 | ) | 12,305 | ||||||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
325,006 | — | — | 7,691 | 30,412 | — | 363,109 | |||||||||||||||||||||
Hushan Xinju (Chengdu) Venture Investment Center (Smartsource) |
7,970 | — | — | (170 | ) | 764 | — | 8,564 | ||||||||||||||||||||
Prume Social Farm, Co., Ltd. |
2,221 | — | — | 481 | — | — | 2,702 | |||||||||||||||||||||
Wuxi xinfa IC industry park., Ltd. |
20,952 | 9,603 | — | (100 | ) | 2,301 | — | 32,756 | ||||||||||||||||||||
Magnus Private Investment Co., Ltd. |
150,840 | — | — | 57,048 | — | — | 207,888 | |||||||||||||||||||||
L&S (No.10) Early Stage III Investment Association |
2,609 | 1,500 | — | (96 | ) | — | — | 4,013 | ||||||||||||||||||||
SiFive Inc. |
34,372 | — | — | (1,702 | ) | 516 | — | 33,186 | ||||||||||||||||||||
YD-SK-KDB |
2,566 | 3,000 | — | (168 | ) | — | — | 5,398 | ||||||||||||||||||||
Ningbo Zhongxin Venture Capital Partnership (Limited Partnership) |
— | 3,448 | — | (86 | ) | 188 | — | 3,550 | ||||||||||||||||||||
Jiangsu KVTS Semiconductor science and Technology Co Ltd. |
— | 6,831 | — | 241 | 143 | — | 7,215 | |||||||||||||||||||||
HITECH Semiconductor (Wuxi) Co., Ltd. |
113,430 | — | — | 12,997 | 8,180 | (16,771 | ) | 117,836 | ||||||||||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
195,423 | — | — | 7,832 | 19,046 | — | 222,301 | |||||||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor |
24,818 | — | — | (189 | ) | — | — | 24,629 | ||||||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor |
14,847 | 15,000 | — | (96 | ) | — | — | 29,751 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ | 1,166,244 | 40,062 | — | 204,086 | 90,874 | (17,900 | ) | 1,483,366 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
||||||||||||||||||||||||||||
Beginning balance |
Acquisition |
Transfer |
Share of profit (loss) |
Other equity movement |
Dividend |
Ending balance |
||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||
Stratio, Inc. |
₩ | 395 | — | — | 19 | (7 | ) | — | 407 | |||||||||||||||||||
SK China Company Limited |
259,272 | — | — | 5,746 | (7,544 | ) | — | 257,474 | ||||||||||||||||||||
Gemini Partners Pte. Ltd. |
2,735 | — | — | (872 | ) | (92 | ) | — | 1,771 | |||||||||||||||||||
TCL Fund |
4,995 | 5,280 | — | 999 | 264 | — | 11,538 | |||||||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
237,599 | 121,450 | — | 10,889 | (44,932 | ) | — | 325,006 | ||||||||||||||||||||
Hushan Xinju (Chengdu) Venture Investment Center(Smartsource) |
5,659 | 2,565 | — | (233 | ) | (14 | ) | (7 | ) | 7,970 | ||||||||||||||||||
Prume Social Farm, Co., Ltd. |
1,000 | 1,000 | — | 221 | — | — | 2,221 | |||||||||||||||||||||
Wuxi xinfa IC industry park., Ltd. |
— | 21,860 | — | (86 | ) | (822 | ) | — | 20,952 | |||||||||||||||||||
Magnus Private Investment Co., Ltd. |
— | 207,346 | — | (56,506 | ) | — | — | 150,840 | ||||||||||||||||||||
L&S (No.10) Early Stage III Investment Association |
— | 2,250 | 500 | (141 | ) | — | — | 2,609 | ||||||||||||||||||||
SiFive Inc. |
— | 35,709 | — | (880 | ) | (457 | ) | — | 34,372 | |||||||||||||||||||
YD-SK-KDB |
— | 1,400 | 1,400 | (234 | ) | — | — | 2,566 | ||||||||||||||||||||
HITECH Semiconductor (Wuxi) Co., Ltd. |
114,518 | — | — | 21,241 | (7,296 | ) | (15,033 | ) | 113,430 | |||||||||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
142,594 | 69,377 | — | (16,627 | ) | 79 | — | 195,423 | ||||||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor |
— | — | 24,480 | 338 | — | — | 24,818 | |||||||||||||||||||||
Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor |
— | 15,000 | — | (153 | ) | — | — | 14,847 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ | 768,767 | 483,237 | 26,380 | (36,279 | ) | (60,821 | ) | (15,040 | ) | 1,166,244 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31, 2021 |
||||||||||||||||
Current assets |
Non-current assets |
Current liabilities |
Non-current liabilities |
|||||||||||||
(In millions of won) |
||||||||||||||||
SK China Company Limited |
₩ | 1,699,028 | 1,581,229 | 71,745 | 274,934 | |||||||||||
SK South East Asia Investment Pte. Ltd. |
193,874 | 2,542,885 | 198 | — | ||||||||||||
Magnus Private Investment Co., Ltd. |
242,796 | 523,673 | 100,304 | 470,255 | ||||||||||||
HITECH Semiconductor (Wuxi) Co., Ltd. |
239,084 | 374,467 | 116,780 | 229,200 | ||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
164,480 | 577,694 | 18,439 | 283,194 |
December 31, 2020 |
||||||||||||||||
Current assets |
Non-current assets |
Current liabilities |
Non-current liabilities |
|||||||||||||
(In millions of won) |
||||||||||||||||
SK China Company Limited |
₩ | 380,413 | 1,706,634 | 51,485 | 308,147 | |||||||||||
SK South East Asia Investment Pte. Ltd. |
797,045 | 1,672,412 | 67 | — | ||||||||||||
Magnus Private Investment Co., Ltd. |
175,007 | 522,600 | 85,754 | 461,012 | ||||||||||||
HITECH Semiconductor (Wuxi) Co., Ltd. |
208,103 | 380,648 | 129,135 | 203,246 | ||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
89,629 | 555,551 | 31,557 | 226,732 |
2021 |
2020 |
2019 |
||||||||||||||||||||||
Revenue |
Profit for the Period |
Revenue |
Profit (loss) for the year |
Revenue |
Profit (loss) for the year |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
SK China Company Limited |
₩ | 54,549 | 1,010,813 | 154,355 | 48,427 | 120,317 | 28,309 | |||||||||||||||||
SK South East Asia Investment Pte. Ltd. |
1,172 | 38,450 | 9,467 | 54,448 | 10,294 | 28,763 | ||||||||||||||||||
Magnus Private Investment Co., Ltd. |
394,717 | 57,047 | 164,662 | (56,505 | ) | — | — | |||||||||||||||||
HITECH Semiconductor (Wuxi) Co., Ltd. |
521,362 | 29,926 | 622,653 | 51,871 | 657,741 | 36,398 | ||||||||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
60,696 | 15,634 | — | (33,188 | ) | — | (1,044 | ) |
October 31, 2021 |
December 31, 2020 |
|||||||||||||||
Type |
Acquisition cost |
Book value |
Book value |
|||||||||||||
(In millions of won) |
||||||||||||||||
ProMOS Technologies Inc. |
Equity securities | ₩ | 21,847 | — | — | |||||||||||
Intellectual Discovery |
Equity securities | 4,000 | 2,182 | 2,182 | ||||||||||||
China Walden Venture Investments II, L.P. |
Certificate | 8,457 | 12,520 | 10,965 | ||||||||||||
China Walden Venture Investments III, L.P. |
Certificate | 7,014 | 7,577 | 7,085 | ||||||||||||
Keyssa, Inc |
Equity securities | 6,174 | 189 | 189 | ||||||||||||
BCPE Pangea Intermediate Holdings Cayman, L.P. 1 |
Certificate | 2,752,014 | 3,823,456 | 3,595,494 | ||||||||||||
BCPE Pangea Cayman2, Ltd. 1 |
Convertible bond | 1,283,095 | 2,521,342 | 2,351,225 | ||||||||||||
FemtoMetrix, Inc. |
Convertible bond | 4,387 | 4,387 | 4,387 | ||||||||||||
GigaIO Networks, Inc. |
Equity securities | 4,066 | 3,103 | 3,103 | ||||||||||||
Inpria Corporation |
Equity securities | 4,753 | 4,729 | 4,729 | ||||||||||||
Shanghai IoT Phase II Venture Capital Fund Partnership, L.P |
Certificate | 7,292 | 18,572 | 13,262 | ||||||||||||
Beijing Horizon Robotics Technology Co., Ltd. |
Equity securities | 55,091 | 58,819 | 56,190 | ||||||||||||
Shanghi Sitrus Microelectronics Technology Co., Ltd. |
Equity securities | 5,254 | 1,441 | 1,314 | ||||||||||||
Jiangsu Jiequan Junhai Rongxin Investment Partnership |
Certificate | 52,124 | 53,290 | 20,035 | ||||||||||||
Impact Venture Capital I, L.P. |
Certificate | 5,242 | 6,899 | 5,881 | ||||||||||||
AutoTech Fund I, L.P. |
Certificate | 4,294 | 4,340 | 3,840 | ||||||||||||
TransLink Capital Partners IV, L.P. |
Certificate | 4,357 | 4,147 | 3,563 | ||||||||||||
Nuvolta |
Equity securities | 12,296 | 12,816 | — | ||||||||||||
GPT |
Certificate | 12,296 | 12,816 | — | ||||||||||||
Others |
— | 66,949 | 74,331 | 56,183 | ||||||||||||
|
|
|
|
|
|
|||||||||||
₩ | 4,321,002 | 6,626,956 | 6,139,627 | |||||||||||||
|
|
|
|
|
|
1 |
In 2017, the Group participated in a consortium that includes Bain Capital in connection with acquisition of a stake in Toshiba Memory Corporation (“TMC”). On March 1, 2019, Toshiba Memory Holdings Corporation (“TMCHD”) was established as the holding company for TMC. Subsequently TMCHD and TMC were renamed KIOXIA Holdings Corporation (“KIOXIA”) and KIOXIA Corporation respectively. As of October 31, 2021, the Group holds equity interests in SPC1, which holds equity interests in KIOXIA, and convertible bonds issued by SPC2, which may be later convertible to 15% stake in KIOXIA. Management and decision-making rights of the Group for SPC1 and SPC2 are limited. Accordingly, the Group does not control or have any significant influenc4e on SPC1 and SPC2. The investments in SPC1 and SPC2 are classified as financial assets which are debt instruments measured at fair value through profit or loss. |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 6,139,627 | 4,381,812 | |||||
Acquisition |
88,258 | 95,332 | ||||||
Disposal |
(5,475 | ) | (706 | ) | ||||
Gain (loss) on valuation |
520,229 | 1,733,783 | ||||||
Foreign exchange difference |
(115,683 | ) | (44,214 | ) | ||||
Transfer |
— | (26,380 | ) | |||||
|
|
|
|
|||||
Ending balance |
₩ | 6,626,956 | 6,139,627 | |||||
|
|
|
|
2021 |
||||||||||||||||||||||||||||||||
Land |
Buildings |
Structures |
Machinery |
Vehicles |
Others |
Construction- in-progress |
Total |
|||||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||||||
Beginning balance |
₩ | 971,606 | 7,018,249 | 1,812,107 | 26,491,042 | 40,557 | 724,825 | 4,172,176 | 41,230,562 | |||||||||||||||||||||||
Changes during 2021 |
||||||||||||||||||||||||||||||||
Acquisitions |
12,072 | 184,553 | 177,751 | 6,696,835 | 88 | 112,384 | 2,836,605 | 10,020,288 | ||||||||||||||||||||||||
Disposals |
(55 | ) | (190 | ) | (26 | ) | (4,092 | ) | — | (40 | ) | (6,241 | ) | (10,644 | ) | |||||||||||||||||
Depreciation |
— | (241,629 | ) | (107,833 | ) | (7,261,632 | ) | (2,786 | ) | (239,432 | ) | — | (7,853,312 | ) | ||||||||||||||||||
Transfers 1 |
72,952 | 107,106 | 24,163 | 1,769,609 | — | 74,946 | (2,008,779 | ) | 39,997 | |||||||||||||||||||||||
Exchange differences and others |
3,494 | 84,058 | 53,835 | 727,670 | 26 | 13,057 | 40,071 | 922,211 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending net book amount |
1,060,069 | 7,152,147 | 1,959,997 | 28,419,432 | 37,885 | 685,740 | 5,033,832 | 44,349,102 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Acquisition cost |
1,060,069 | 8,894,310 | 2,769,189 | 83,165,139 | 48,940 | 2,225,869 | 5,033,832 | 103,197,348 | ||||||||||||||||||||||||
Accumulated depreciation |
— | (1,702,197 | ) | (790,088 | ) | (54,575,300 | ) | (11,048 | ) | (1,540,100 | ) | — | (58,618,733 | ) | ||||||||||||||||||
Accumulated impairment |
— | (23,699 | ) | (19,104 | ) | (162,456 | ) | — | (23 | ) | — | (205,282 | ) | |||||||||||||||||||
Government grants |
— | (16,267 | ) | — | (7,951 | ) | (7 | ) | (6 | ) | — | (24,231 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ | 1,060,069 | 7,152,147 | 1,959,997 | 28,419,432 | 37,885 | 685,740 | 5,033,832 | 44,349,102 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Certain investment property was transferred to property, plant and equipment during the ten-month period ended October 31, 2021. |
2020 |
||||||||||||||||||||||||||||||||
Land |
Buildings |
Structures |
Machinery |
Vehicles |
Others |
Construction- in-progress |
Total |
|||||||||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||||||||||
Beginning balance |
₩ | 1,041,771 | 5,547,744 | 1,619,064 | 26,974,270 | 43,096 | 764,043 | 3,959,952 | 39,949,940 | |||||||||||||||||||||||
Changes during 2020 |
||||||||||||||||||||||||||||||||
Acquisitions |
38,075 | 476,831 | 284,113 | 6,044,813 | 55 | 192,353 | 3,012,558 | 10,048,798 | ||||||||||||||||||||||||
Disposals |
(9,231 | ) | (327 | ) | (73 | ) | (17,095 | ) | — | (884 | ) | (37,850 | ) | (65,460 | ) | |||||||||||||||||
Depreciation |
— | (233,909 | ) | (114,307 | ) | (7,888,654 | ) | (3,351 | ) | (274,913 | ) | — | (8,515,134 | ) | ||||||||||||||||||
Transfers 1 |
(96,096 | ) | 1,222,639 | 21,076 | 1,367,213 | 753 | 45,476 | (2,767,284 | ) | (206,223 | ) | |||||||||||||||||||||
Exchange differences and others |
(2,913 | ) | 5,271 | 2,234 | 10,495 | 4 | (1,250 | ) | 4,800 | 18,641 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending net book amount |
971,606 | 7,018,249 | 1,812,107 | 26,491,042 | 40,557 | 724,825 | 4,172,176 | 41,230,562 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Acquisition cost |
971,606 | 8,459,016 | 2,494,982 | 74,141,182 | 48,860 | 2,045,915 | 4,172,176 | 92,333,737 | ||||||||||||||||||||||||
Accumulated depreciation |
— | (1,401,792 | ) | (663,771 | ) | (47,485,857 | ) | (8,292 | ) | (1,321,067 | ) | — | (50,880,779 | ) | ||||||||||||||||||
Accumulated impairment |
— | (23,699 | ) | (19,104 | ) | (162,276 | ) | — | (23 | ) | — | (205,102 | ) | |||||||||||||||||||
Government grants |
— | (15,276 | ) | — | (2,007 | ) | (11 | ) | — | — | (17,294 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ | 971,606 | 7,018,249 | 1,812,107 | 26,491,042 | 40,557 | 724,825 | 4,172,176 | 41,230,562 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Certain investment property was transferred to property, plant and equipment during the year ended December 31, 2020. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Cost of sales |
₩ | 7,186,705 | 7,749,569 | 6,878,303 | ||||||||
Selling and administrative expenses |
583,056 | 725,791 | 574,961 | |||||||||
Other expenses |
8,128 | 7,418 | 14,923 | |||||||||
Development costs and others |
75,423 | 32,356 | 43,607 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 7,853,312 | 8,515,134 | 7,511,794 | |||||||||
|
|
|
|
|
|
Insured assets |
Insured amount |
Insurance Company | ||||||
(In millions of won) |
||||||||
Package insurance |
Property, plant and equipment; investment property; inventories; and business interruption | ₩ | 120,000,827 | Hyundai Marine & Fire Insurance Co., Ltd. and others | ||||
Fire insurance |
Property, plant and equipment; investment property | 78,759 | ||||||
Erection all risks insurance |
Property, plant and equipment | 5,984,764 | ||||||
|
|
|||||||
₩ | 126,064,350 | |||||||
|
|
2021 |
||||||||||||||||||||||||
Properties |
Structures |
Machinery |
Vehicles |
Others |
Total |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Beginning net book amount |
₩ | 111,860 | 1,048,208 | 504,539 | 18,207 | 24,831 | 1,707,645 | |||||||||||||||||
Increase |
51,971 | 11,466 | 77,220 | 12,519 | 55 | 153,231 | ||||||||||||||||||
Others |
2,489 | (10,770 | ) | (64,060 | ) | (1,114 | ) | 1,949 | (71,506 | ) | ||||||||||||||
Depreciation |
(28,821 | ) | (71,854 | ) | (155,295 | ) | (13,111 | ) | (13,057 | ) | (282,138 | ) | ||||||||||||
Foreign exchange difference |
8,977 | 48,727 | 3,334 | 197 | 1,202 | 62,437 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending net book amount |
146,476 | 1,025,777 | 365,738 | 16,698 | 14,980 | 1,569,669 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
220,026 | 1,238,000 | 675,759 | 32,937 | 34,886 | 2,201,608 | ||||||||||||||||||
Accumulated amortization |
(40,012 | ) | (212,223 | ) | (310,021 | ) | (16,239 | ) | (19,906 | ) | (598,401 | ) | ||||||||||||
Government grants |
(33,538 | ) | — | — | — | — | (33,538 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ | 146,476 | 1,025,777 | 365,738 | 16,698 | 14,980 | 1,569,669 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||||||
Properties |
Structures |
Machinery |
Vehicles |
Others |
Total |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Beginning net book amount |
₩ | 97,855 | 975,996 | 609,529 | 11,491 | 11,787 | 1,706,658 | |||||||||||||||||
Increase |
26,358 | 159,166 | 52,849 | 25,881 | 20,212 | 284,466 | ||||||||||||||||||
Others |
6,607 | (7,706 | ) | 15,823 | (4,746 | ) | — | 9,978 | ||||||||||||||||
Depreciation |
(18,686 | ) | (83,522 | ) | (172,750 | ) | (14,436 | ) | (6,824 | ) | (296,218 | ) | ||||||||||||
Foreign exchange difference |
(274 | ) | 4,274 | (912 | ) | 17 | (344 | ) | 2,761 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending net book amount |
111,860 | 1,048,208 | 504,539 | 18,207 | 24,831 | 1,707,645 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Acquisition cost |
169,300 | 1,210,800 | 811,315 | 29,684 | 40,787 | 2,261,886 | ||||||||||||||||||
Accumulated amortization |
(26,193 | ) | (162,592 | ) | (306,776 | ) | (11,477 | ) | (15,956 | ) | (522,994 | ) | ||||||||||||
Government grants |
(31,247 | ) | — | — | — | — | (31,247 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ | 111,860 | 1,048,208 | 504,539 | 18,207 | 24,831 | 1,707,645 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning net book amount |
₩ | 1,643,716 | 1,666,999 | |||||
Increase |
153,231 | 284,466 | ||||||
Others |
(71,812 | ) | 9,389 | |||||
Interest expense |
27,046 | 34,435 | ||||||
Payments |
(271,859 | ) | (326,665 | ) | ||||
Foreign exchange difference |
81,162 | (24,908 | ) | |||||
|
|
|
|
|||||
Ending net book amount |
₩ | 1,561,484 | 1,643,716 | |||||
|
|
|
|
2021 |
||||
(In millions of won) |
||||
Less than 1 year |
₩ | 429,548 | ||
1~5 years |
708,606 | |||
More than 5 years |
616,039 | |||
|
|
|||
Total lease liabilities undiscounted as of October 31, 2021 |
1,754,193 | |||
Present value of lease liabilities recognized as of October 31, 2021 |
1,561,484 | |||
|
|
|||
Current lease liabilities |
301,846 | |||
Non-current lease liabilities |
1,259,638 |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Depreciation of right-to-use |
₩ | 282,138 | 296,218 | |||||
Interest expenses of lease liabilities |
27,046 | 34,435 | ||||||
Expenses relating to short-term leases |
9,710 | 17,911 | ||||||
Expenses relating to leases of low-value assets |
1,363 | 1,733 |
Property, plant and equipment |
Investment Property |
Total |
||||||||||
(In millions of won) |
||||||||||||
Less than 1 year |
₩ | 12,042 | 14,650 | 26,692 | ||||||||
1~2 years |
3,948 | 14,547 | 18,495 | |||||||||
2~3 years |
— | 14,438 | 14,438 | |||||||||
3~4 years |
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
₩ | 15,990 | 43,635 | 59,625 | |||||||||
|
|
|
|
|
|
2021 |
||||||||||||||||||||
Goodwill |
Industrial property rights |
Development costs |
Others |
Total |
||||||||||||||||
(In millions of won) | ||||||||||||||||||||
Beginning net book amount |
₩ | 701,596 | 86,127 | 597,930 | 2,014,625 | 3,400,278 | ||||||||||||||
Changes during 2021 |
||||||||||||||||||||
Internal development |
— | — | 325,845 | — | 325,845 | |||||||||||||||
External acquisition |
— | 7,608 | — | 415,569 | 423,177 | |||||||||||||||
Business combination |
— | — | — | 11 | 11 | |||||||||||||||
Disposals |
— | (1,665 | ) | — | (13,073 | ) | (14,738 | ) | ||||||||||||
Amortization |
— | (13,971 | ) | (296,134 | ) | (340,773 | ) | (650,878 | ) | |||||||||||
Impairment |
— | — | (43,069 | ) | (384 | ) | (43,453 | ) | ||||||||||||
Transfers |
— | 10,734 | — | (7,284 | ) | 3,450 | ||||||||||||||
Others |
21,799 | — | — | 9,477 | 31,276 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending net book amount |
723,395 | 88,833 | 584,572 | 2,078,168 | 3,474,968 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Acquisition cost |
723,395 | 209,239 | 3,511,249 | 3,484,980 | 7,928,863 | |||||||||||||||
Accumulated amortization and impairment |
— | (120,406 | ) | (2,926,677 | ) | (1,406,812 | ) | (4,453,895 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 723,395 | 88,833 | 584,572 | 2,078,168 | 3,474,968 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||
Goodwill |
Industrial property rights |
Development costs |
Others |
Total |
||||||||||||||||
(In millions of won) | ||||||||||||||||||||
Beginning net book amount |
₩ | 720,197 | 85,724 | 931,788 | 833,340 | 2,571,049 | ||||||||||||||
Changes during 2020 |
||||||||||||||||||||
Internal development |
— | — | 259,020 | — | 259,020 | |||||||||||||||
External acquisition |
— | 13,693 | — | 412,524 | 426,217 | |||||||||||||||
Disposals |
— | (3,782 | ) | — | (8,504 | ) | (12,286 | ) | ||||||||||||
Amortization |
— | (16,001 | ) | (576,334 | ) | (368,215 | ) | (960,550 | ) | |||||||||||
Impairment |
— | — | (16,544 | ) | — | (16,544 | ) | |||||||||||||
Transfers |
— | 6,493 | — | (9,720 | ) | (3,227 | ) | |||||||||||||
Others 1 |
(18,601 | ) | — | — | 1,155,200 | 1,136,599 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending net book amount |
701,596 | 86,127 | 597,930 | 2,014,625 | 3,400,278 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Acquisition cost |
701,596 | 195,637 | 3,185,403 | 3,110,632 | 7,193,268 | |||||||||||||||
Accumulated amortization and impairment |
— | (109,510 | ) | (2,587,473 | ) | (1,096,007 | ) | (3,792,990 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 701,596 | 86,127 | 597,930 | 2,014,625 | 3,400,278 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
Others include reclassification of license assets due to a change in accounting estimate and increasing or decreasing amount due to exchange rate fluctuations and others. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Cost of sales |
₩ | 206,661 | 219,851 | 88,445 | ||||||||
Selling and administrative expenses |
442,908 | 739,247 | 705,383 | |||||||||
Development costs |
1,309 | 1,452 | 1,341 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 650,878 | 960,550 | 795,169 | |||||||||
|
|
|
|
|
|
October 31, 2021 | ||||||
Book value |
Residual amortization period | |||||
(In millions of won) | ||||||
DRAM |
₩ | 114,613 | 1~20 months | |||
1,659 | 1 | |||||
NAND |
310,885 | 8~21 months | ||||
122,385 | 1 | |||||
CIS |
48,388 | 2~21 months | ||||
|
|
|||||
₩ | 597,930 | |||||
|
|
1 |
Amortization has not started as of October 31, 2021 |
December 31, 2020 | ||||||
Book value |
Residual amortization period | |||||
(In millions of won) | ||||||
DRAM |
₩ | 46,995 | 11 months | |||
60,549 | 1 | |||||
NAND |
296,317 | 18 months | ||||
124,328 | 1 | |||||
CIS |
43,883 | 2~12 months | ||||
25,858 | 1 | |||||
|
|
|||||
₩ | 597,930 | |||||
|
|
1 |
Amortization has not started as of December 31, 2020 |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning net book amount |
₩ | 209,417 | 258 | |||||
Depreciation |
(1,426 | ) | (291 | ) | ||||
Transfer 1 |
(43,447 | ) | 209,450 | |||||
|
|
|
|
|||||
Ending net book amount |
164,544 | 209,417 | ||||||
|
|
|
|
|||||
Acquisition cost |
170,550 | 249,135 | ||||||
Accumulated depreciation |
(6,006 | ) | (39,718 | ) | ||||
|
|
|
|
|||||
Ending net book amount |
₩ | 164,544 | 209,417 | |||||
|
|
|
|
1 |
Certain investment property was transferred to property, plant and equipment and certain property, plant and equipment was transferred to investment property during the period ended October 31, 2021 and the year ended December 31, 2020. |
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Current |
||||||||
Rent deposits payable |
₩ | 4,946 | — | |||||
Accrued expenses |
2,149,356 | 1,367,193 | ||||||
|
|
|
|
|||||
2,154,302 | 1,367,193 | |||||||
|
|
|
|
|||||
Non-current |
||||||||
Rent deposits payable |
8,679 | 6,360 | ||||||
Long-term accrued expenses |
13,959 | 23,563 | ||||||
|
|
|
|
|||||
22,638 | 29,923 | |||||||
|
|
|
|
|||||
₩ | 2,176,940 | 1,397,116 | ||||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Current |
||||||||
Short-term borrowings |
₩ | 181,611 | 179,579 | |||||
Current portion of long-term borrowings |
2,004,747 | 2,604,724 | ||||||
Current portion of debentures |
549,674 | 329,947 | ||||||
|
|
|
|
|||||
2,736,032 | 3,114,250 | |||||||
|
|
|
|
|||||
Non-current |
||||||||
Long-term borrowings |
4,223,014 | 4,526,968 | ||||||
Debentures |
7,181,330 | 3,610,430 | ||||||
|
|
|
|
|||||
11,404,344 | 8,137,398 | |||||||
|
|
|
|
|||||
₩ | 14,140,376 | 11,251,648 | ||||||
|
|
|
|
Financial Institutions |
Maturity date |
Interest rate per annum as of October 31, 2021 (%) 1 |
October 31, 2021 |
December 31, 2020 |
||||||||||
(In millions of won) |
||||||||||||||
General borrowings |
Shinhan Bank | 2021.09.27 | — |
₩ | — | 4,000 | ||||||||
Foreign general borrowings |
Cypress | 2021.12.31 | — | — | 6,924 | |||||||||
Industrial & Commercial Bank of China |
2021.01.20 | — |
— | 32,682 | ||||||||||
China Construction Bank and others | 2021.02.26 | — |
— | 76,258 | ||||||||||
City Bank | 2021.07.14 ~ 2021.11.17 | 1M USD LIBOR + 0.55 |
25,263 | 59,715 | ||||||||||
China Merchants Bank | 2022.01.21 ~ 2022.09.27 | 3M USD LIBOR + 0.55~1.90 |
57,508 | — | ||||||||||
Bank of China | 2022.09.07 ~ 2022.11.12 | 3M USD LIBOR + 1.18~1.20 |
21,207 | — | ||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. | 2022.03.21 ~ 2022.05.13 | 4.15~5.10 | 77,633 | — | ||||||||||
|
|
|
|
|||||||||||
₩ | 181,611 | 179,579 | ||||||||||||
|
|
|
|
Financial institutions |
Maturity date |
Interest rate per annum as of October 31, 2021 (%) 1 |
October 31, 2021 |
December 31, 2020 |
||||||||||||||
(In millions of won) |
||||||||||||||||||
Local currency borrowings: |
||||||||||||||||||
Funds for equipment |
Korea Development Bank | |
2021.09.29 ~ 2025.04.14 |
|
1.98 ~ 2.50 | ₩ | 475,000 | 725,000 | ||||||||||
The Export-Import Bank of Korea | |
2022.10.23 ~ 2025.05.15 |
|
1.31 ~ 2.00 | 600,000 | 600,000 | ||||||||||||
Shinhan Bank and others |
|
2025.03.31 ~ 2028.04.09 |
|
1.00 ~ 3.08 | 5,167 | 3,573 | ||||||||||||
Commercial Paper |
Shinhan Bank General Finance Department | 2023.11.20 | CD(91 days) + 0.67 | 300,000 | 300,000 | |||||||||||||
|
|
|
|
|||||||||||||||
1,380,167 | 1,628,573 | |||||||||||||||||
|
|
|
|
|||||||||||||||
Foreign currency borrowings: |
||||||||||||||||||
General borrowings |
The Export-Import Bank of Korea | 2021.05.31 | — | — | 843,408 | |||||||||||||
The Export-Import Bank of Korea | 2023.02.03 | 3M USD LIBOR + 1.30 | 117,170 | 108,800 | ||||||||||||||
Bank of China | 2023.12.09 | 3M USD LIBOR + 0.8 | 111,151 | — | ||||||||||||||
Bank of China | 2024.05.26 | 0.9 | 117,001 | — | ||||||||||||||
Funds for equipment |
The Export-Import Bank of Korea | |
2021.02.25 ~ 2022.03.10 |
|
3M USD LIBOR + 1.10 ~ 1.40 |
|
58,585 | 244,800 | ||||||||||
The Export-Import Bank of Korea | |
2021.12.25 ~ 2021.12.27 |
|
3M USD LIBOR + 1.30 | 292,502 | 272,349 | ||||||||||||
The Export-Import Bank of Korea | 2026.04.28 | 3M USD LIBOR + 0.95 | 351,510 | — | ||||||||||||||
Korea Development Bank | 2026.10.02 | 3M USD LIBOR + 1.10 | 585,850 | 544,000 | ||||||||||||||
China Development Bank | |
2023.05.26 ~ 2023.11.25 |
3M USD LIBOR + 1.00 | 210,602 | 212,432 | |||||||||||||
China Bank | 2022.11.28 | 3M USD LIBOR + 1.70 | 103,196 | 187,376 | ||||||||||||||
Industrial & Commercial Bank of China and others | 2027.12.21 | 3M USD LIBOR + 1.65 | 234,002 | — | ||||||||||||||
Syndicated loan |
Industrial & Commercial Bank of China and others | 2024.04.24 | 3M USD LIBOR + 1.65 | 2,559,395 | 3,097,974 | |||||||||||||
SLB |
Macquarie | |
2024.03.22 ~ 2024.04.26 |
|
4.17 ~ 7.85 | 120,879 | — | |||||||||||
|
|
|
|
|||||||||||||||
4,861,843 | 5,511,139 | |||||||||||||||||
|
|
|
|
|||||||||||||||
6,242,010 | 7,139,712 | |||||||||||||||||
|
|
|
|
|||||||||||||||
Less: Current portion |
(2,004,747 | ) | (2,604,724 | ) | ||||||||||||||
Less: Present value discount |
(14,249 | ) | (8,020 | ) | ||||||||||||||
|
|
|
|
|||||||||||||||
₩ | 4,223,014 | 4,526,968 | ||||||||||||||||
|
|
|
|
1 |
As of October 31, 2021, the annual interest rates are as follows: |
Type |
Interest rate per annum as of October 31, 2021 |
|||
3M USD LIBOR |
0.13 | % | ||
CD (91 Days) |
1.12 | % |
Maturity date |
Interest rate per annum as of October 31, 2021 (%) |
October 31, 2021 |
December 31, 2020 |
|||||||||||||
(In millions of won) |
||||||||||||||||
Unsecured notes in local currency: |
||||||||||||||||
Unsecured corporate bonds 214-2nd |
2022.08.26 | 2.63 | ₩ | 140,000 | 140,000 | |||||||||||
Unsecured corporate bonds 215-3rd |
2022.11.25 | 2.75 | 10,000 | 10,000 | ||||||||||||
Unsecured corporate bonds 216-2nd |
2021.02.19 | — | — | 180,000 | ||||||||||||
Unsecured corporate bonds 216-3rd |
2023.02.19 | 2.53 | 80,000 | 80,000 | ||||||||||||
Unsecured corporate bonds 217-2nd |
2021.05.27 | — | — | 150,000 | ||||||||||||
Unsecured corporate bonds 218th |
2023.03.14 | 3.01 | 300,000 | 300,000 | ||||||||||||
Unsecured corporate bonds 219-1st |
2023.08.27 | 2.48 | 250,000 | 250,000 | ||||||||||||
Unsecured corporate bonds 219-2nd |
2025.08.27 | 2.67 | 90,000 | 90,000 | ||||||||||||
Unsecured corporate bonds 220-1st |
2022.05.09 | 1.96 | 410,000 | 410,000 | ||||||||||||
Unsecured corporate bonds 220-2nd |
2024.05.09 | 1.99 | 200,000 | 200,000 | ||||||||||||
Unsecured corporate bonds 220-3rd |
2026.05.09 | 2.17 | 120,000 | 120,000 | ||||||||||||
Unsecured corporate bonds 220-4rd |
2029.05.09 | 2.54 | 250,000 | 250,000 | ||||||||||||
Unsecured corporate bonds 221-1st |
2023.02.14 | 1.61 | 340,000 | 340,000 | ||||||||||||
Unsecured corporate bonds 221-2nd |
2025.02.14 | 1.72 | 360,000 | 360,000 | ||||||||||||
Unsecured corporate bonds 221-3rd |
2027.02.14 | 1.93 | 130,000 | 130,000 | ||||||||||||
Unsecured corporate bonds 221-4th |
2030.02.14 | 2.21 | 230,000 | 230,000 | ||||||||||||
Unsecured corporate bonds 222-1st |
2030.11.10 | 2.33 | 70,000 | 70,000 | ||||||||||||
Unsecured corporate bonds 222-2nd |
2035.11.10 | 2.73 | 100,000 | 100,000 | ||||||||||||
Unsecured corporate bonds 223-1st |
2024.04.12 | 1.51 | 550,000 | — | ||||||||||||
Unsecured corporate bonds 223-2nd |
2026.04.13 | 1.89 | 360,000 | — | ||||||||||||
Unsecured corporate bonds 223-3rd |
2028.04.13 | 2.11 | 80,000 | — | ||||||||||||
Unsecured corporate bonds 223-4th |
2031.04.13 | 2.48 | 190,000 | — | ||||||||||||
|
|
|
|
|||||||||||||
4,260,000 | 3,410,000 | |||||||||||||||
|
|
|
|
|||||||||||||
Unsecured notes in foreign currency: |
||||||||||||||||
Unsecured global bonds 9th |
2024.09.17 | 3.00 | 585,850 | 544,000 | ||||||||||||
Unsecured global bonds 10-1st |
2024.01.19 | 1.00 | 585,850 | — | ||||||||||||
Unsecured global bonds 10-2nd |
2026.01.19 | 1.50 | 1,171,700 | — | ||||||||||||
Unsecured global bonds 10-3th |
2031.01.19 | 2.38 | 1,171,700 | — | ||||||||||||
|
|
|
|
|||||||||||||
7,775,100 | 3,954,000 | |||||||||||||||
|
|
|
|
|||||||||||||
Less: Discounts on debentures |
(44,096 | ) | (13,623 | ) | ||||||||||||
Less: Current portion |
(549,674 | ) | (329,947 | ) | ||||||||||||
|
|
|
|
|||||||||||||
₩ | 7,181,330 | 3,610,430 | ||||||||||||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Current |
||||||||
Advance receipts |
₩ | 36,193 | 13,006 | |||||
Unearned income |
1,259 | 404 | ||||||
Withholdings |
61,054 | 67,043 | ||||||
Deposits received |
— | 14,063 | ||||||
Contract liabilities |
130,167 | 96,378 | ||||||
Others |
3,087 | 6,501 | ||||||
|
|
|
|
|||||
231,760 | 197,395 | |||||||
|
|
|
|
|||||
Non-current |
||||||||
Other long-term employee benefits |
92,890 | 94,026 | ||||||
Long-term advance receipts |
— | 4,901 | ||||||
Others |
2 | — | ||||||
|
|
|
|
|||||
92,892 | 98,927 | |||||||
|
|
|
|
|||||
₩ | 324,652 | 296,322 | ||||||
|
|
|
|
2021 |
||||||||||||||||||||
Beginning balance |
Increase |
Utilization |
Reversal |
Ending Balance |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Warranty |
₩ | 3,015 | 315 | (322 | ) | 531 | 3,539 | |||||||||||||
Emission allowances |
10,782 | 4,192 | (9,727 | ) | — | 5,247 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 13,797 | 4,507 | (10,049 | ) | 531 | 8,786 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
2020 |
||||||||||||||||||||
Beginning balance |
Increase |
Utilization |
Reversal |
Ending Balance |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Warranty |
₩ | 4,081 | 1,087 | (2,153 | ) | — | 3,015 | |||||||||||||
Emission allowances |
6,620 | 13,070 | (8,908 | ) | — | 10,782 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ | 10,701 | 14,157 | (11,061 | ) | — | 13,797 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Present value of defined benefit obligations |
₩ | 2,316,449 | 2,169,154 | |||||
Fair value of plan assets |
(2,178,632 | ) | (2,228,377 | ) | ||||
|
|
|
|
|||||
Net defined benefit liabilities |
₩ | 137,817 | (59,223 | ) | ||||
|
|
|
|
|||||
Defined benefit liabilities |
141,747 | 2,739 | ||||||
Defined benefit assets 1 |
(3,930 | ) | (61,962 | ) |
1 |
The Parent Company and certain subsidiaries’ fair value of plan assets in excess of the present value of defined benefit obligations amounted to ₩3,930 million and ₩61,962 million as of October 31, 2021 and December 31, 2020 are presented as defined benefit assets. |
2021 (%) |
2020 (%) |
|||||||
Discount rate for defined benefit obligations |
1.96 ~ 4.31 | 1.96 ~ 3.56 | ||||||
Expected rate of salary increase |
3.00 ~ 5.52 | 3.00 ~ 5.51 |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 2,169,154 | 1,936,868 | |||||
Current service cost |
211,020 | 250,098 | ||||||
Past service cost |
— | (714 | ) | |||||
Interest expense |
62,101 | 65,002 | ||||||
Transfer from associates |
315 | (2,205 | ) | |||||
Remeasurements: |
(54,285 | ) | (25,036 | ) | ||||
Demographic assumption |
— | 39,198 | ||||||
Financial assumption |
(199,131 | ) | (35,429 | ) | ||||
Adjustment based on experience |
144,846 | (28,805 | ) | |||||
Benefits paid |
(71,884 | ) | (54,824 | ) | ||||
Effect of movements in exchange rates |
28 | (35 | ) | |||||
|
|
|
|
|||||
Ending balance |
₩ | 2,316,449 | 2,169,154 | |||||
|
|
|
|
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 2,228,377 | 1,886,650 | |||||
Contributions |
211 | 355,664 | ||||||
Interest income |
63,850 | 62,834 | ||||||
Transfer from associates |
(257 | ) | 231 | |||||
Benefits paid |
(90,470 | ) | (53,588 | ) | ||||
Remeasurements |
(23,107 | ) | (23,373 | ) | ||||
Foreign exchange differences |
28 | (41 | ) | |||||
|
|
|
|
|||||
Ending balance |
₩ | 2,178,632 | 2,228,377 | |||||
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Current service cost |
₩ | 211,020 | 250,098 | 220,870 | ||||||||
Past service cost |
— | (714 | ) | — | ||||||||
Net interest expense |
(1,748 | ) | 2,168 | 129 | ||||||||
|
|
|
|
|
|
|||||||
₩ | 209,272 | 251,552 | 220,999 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Cost of sales |
₩ | 111,827 | 135,999 | 120,736 | ||||||||
Selling and administrative expenses |
97,445 | 115,553 | 100,263 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 209,272 | 251,552 | 220,999 | |||||||||
|
|
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Deposits |
₩ | 2,177,484 | 2,227,196 | |||||
Others |
1,147 | 1,181 | ||||||
|
|
|
|
|||||
₩ | 2,178,631 | 2,228,377 | ||||||
|
|
|
|
Effects on defined benefit obligation |
||||||||
Increase of rate |
Decrease of rate |
|||||||
(In millions of won) |
||||||||
Discount rate (if changed by 1%) |
₩ | (236,013 | ) | 277,245 | ||||
Expected rate of salary increase (if changed by 1%) |
278,286 | (241,038 | ) |
Less than 1 year |
2 - 5 years |
6 - 10 years |
More than 11 years |
Total |
||||||||||||||||
(In millions of won) |
||||||||||||||||||||
Benefits paid |
₩ | 150,636 | 399,940 | 738,364 | 2,646,403 | 3,935,343 |
October 31, 2021 |
||||||||||||||||||||||||
Beginning |
Adjustment |
Profit or loss |
Equity |
Foreign exchange differences |
Ending |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Inventories, net |
₩ | 123,341 | — | (9,104 | ) | — | 488 | 114,725 | ||||||||||||||||
Property, plant and equipment, net |
436,672 | — | (95,094 | ) | — | 38,508 | 380,086 | |||||||||||||||||
Defined benefits liabilities, net |
(1,876 | ) | — | 34,933 | (8,544 | ) | (6 | ) | 24,507 | |||||||||||||||
Short-term and long-term investment assets and others |
(542,300 | ) | — | (146,906 | ) | — | — | (689,206 | ) | |||||||||||||||
Employee benefits |
59,471 | — | 11,363 | — | 10 | 70,844 | ||||||||||||||||||
Provisions |
(9,441 | ) | — | (12,132 | ) | — | 31 | (21,542 | ) | |||||||||||||||
Other assets and other liabilities |
19,378 | — | 8,260 | — | (148 | ) | 27,490 | |||||||||||||||||
Accrued expenses |
100,714 | — | 24,682 | — | — | 125,396 | ||||||||||||||||||
Others |
11,815 | — | 1,349 | — | 286 | 13,450 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax assets for temporary differences, net |
197,774 | — | (182,649 | ) | (8,544 | ) | 39,169 | 45,750 | ||||||||||||||||
Tax credit carryforwards recognized |
3,899 | — | (650 | ) | — | 259 | 3,508 | |||||||||||||||||
Tax loss carryforwards recognized |
87,881 | — | — | — | 4,000 | 91,881 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax assets recognized, net |
₩ | 289,554 | — | (183,299 | ) | (8,544 | ) | 43,428 | 141,139 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
||||||||||||||||||||||||
Beginning |
Adjustment |
Profit or loss |
Equity |
Foreign exchange differences |
Ending |
|||||||||||||||||||
(In millions of won) |
||||||||||||||||||||||||
Inventories, net |
₩ | 176,742 | — | (52,937 | ) | — | (464 | ) | 123,341 | |||||||||||||||
Property, plant and equipment, net |
208,478 | 27,188 | 201,165 | — | (159 | ) | 436,672 | |||||||||||||||||
Defined benefits liabilities, net |
7,756 | — | (9,798 | ) | 169 | (3 | ) | (1,876 | ) | |||||||||||||||
Short-term and long-term investment assets and others |
(27,555 | ) | — | (514,745 | ) | — | — | (542,300 | ) | |||||||||||||||
Employee benefits |
46,537 | — | 12,936 | — | (2 | ) | 59,471 | |||||||||||||||||
Provisions |
3,589 | — | (13,006 | ) | — | (24 | ) | (9,441 | ) | |||||||||||||||
Other assets and other liabilities |
11,629 | — | 7,632 | — | 117 | 19,378 | ||||||||||||||||||
Accrued expenses |
92,408 | — | 8,306 | — | — | 100,714 | ||||||||||||||||||
Others |
14,681 | — | (2,410 | ) | — | (456 | ) | 11,815 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax assets for temporary differences, net |
534,265 | 27,188 | (362,857 | ) | 169 | (991 | ) | 197,774 | ||||||||||||||||
Tax credit carryforwards recognized |
6,251 | — | (2,192 | ) | — | (160 | ) | 3,899 | ||||||||||||||||
Tax loss carryforwards recognized |
117,381 | — | (24,561 | ) | — | (4,939 | ) | 87,881 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax assets recognized, net |
₩ | 657,897 | 27,188 | (389,610 | ) | 169 | (6,090 | ) | 289,554 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Deductible temporary differences |
₩ | 2,864,208 | 2,637,294 | |||||
Taxable temporary differences |
(3,224,408 | ) | (3,130,362 | ) | ||||
|
|
|
|
|||||
Investments in subsidiaries, associates, and joint ventures |
(360,200 | ) | (493,068 | ) | ||||
|
|
|
|
|||||
Other deductible temporary differences |
12,790 | 12,790 | ||||||
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Deferred income tax assets to be recovered after more than 12 months |
₩ | 1,295,936 | 1,410,835 | |||||
Deferred income tax assets to be recovered within 12 months |
287,102 | 142,651 | ||||||
|
|
|
|
|||||
Deferred income tax assets recognized |
1,583,038 | 1,553,486 | ||||||
|
|
|
|
|||||
Deferred income tax liabilities to be recovered after more than 12 months |
(1,441,381 | ) | (1,263,264 | ) | ||||
Deferred income tax liabilities to be settled within 12 months |
(518 | ) | (668 | ) | ||||
|
|
|
|
|||||
Deferred income tax liabilities recognized |
(1,441,899 | ) | (1,263,932 | ) | ||||
|
|
|
|
|||||
Net income deferred tax assets (liabilities) recognized |
₩ | 141,139 | 289,554 | |||||
|
|
|
|
Hedged items |
Hedging instruments | |||||||||
Borrowing date |
Financial instrument |
Hedged risk |
Type of contract |
Financial institution |
Contract period | |||||
(In thousands of foreign currencies) | ||||||||||
2019.09.17 |
Foreign currency denominated bond with fixed rate (Par value: USD 500,000) |
Foreign currency risk | Fixed-to-fixed |
Kookmin Bank and other | 2019.09.17~ 2024.09.17 | |||||
2019.10.02 |
Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 500,000) |
Foreign currency and interest rate risk | Floating-to-fixed |
Korea Development Bank | 2019.10.02~ 2026.10.02 |
Hedged items |
Hedging instruments | |||||||||
Borrowing date |
Financial instrument |
Hedged risk |
Type of contract |
Financial institution |
Contract period | |||||
(In thousands of foreign currencies) | ||||||||||
2020.02.03 |
Foreign currency denominated borrowing with floating rate (Par value: USD 50,000) |
Interest rate risk | Interest rate swap | Woori Bank | 2020.02.03~ 2023.02.03 | |||||
2020.03.18 |
Foreign currency denominated borrowing with floating rate (Par value: USD 50,000) |
Interest rate risk | Interest rate swap | Woori Bank | 2020.03.18~ 2023.02.03 |
Type of contract |
Hedged items |
Cash flow hedge |
Fair value |
|||||||
(In millions of won and thousands of foreign currencies) |
||||||||||
Fixed-to-fixed |
Foreign currency denominated bond with fixed rate (Par value: USD 500,000) |
₩ | 21,298 | 21,298 | ||||||
Floating-to-fixed |
Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 500,000) |
1,730 | 1,730 | |||||||
|
|
|||||||||
Derivative financial assets |
₩ | 23,028 | ||||||||
|
|
|||||||||
Interest rate swap |
Foreign currency denominated borrowing with floating rate (Par value: USD 50,000) |
₩ | 865 | 865 | ||||||
Interest rate swap |
Foreign currency denominated borrowing with floating rate (Par value: USD 50,000) |
308 | 308 | |||||||
|
|
|||||||||
Derivative financial liabilities |
₩ | 1,173 | ||||||||
|
|
October 31, 2021 |
Decmber 31, 2020 |
|||||||
(In millions of won, thousands of shares) |
||||||||
Issued shares 1 |
731,530 | 731,530 | ||||||
Capital stock: |
||||||||
Common stock |
₩ | 3,657,652 | 3,657,652 | |||||
Capital surplus: |
||||||||
Additional paid in capital |
3,625,797 | 3,625,797 | ||||||
Others |
708,846 | 517,939 | ||||||
|
|
|
|
|||||
4,334,643 | 4,143,736 | |||||||
|
|
|
|
|||||
Other equity: |
||||||||
Acquisition cost of treasury shares 2 |
(2,302,119 | ) | (2,508,427 | ) | ||||
Stock option |
7,133 | 5,305 | ||||||
|
|
|
|
|||||
₩ | (2,294,986 | ) | (2,503,122 | ) | ||||
|
|
|
|
|||||
Number of treasury shares |
40,382 | 44,001 |
1 |
As of October 31, 2021, total number of shares is 728,002 thousand shares, which differs from total issued shares due to the effect of stock retirement. |
2 |
Through the resolution of the Board of Directors on April 28, 2021, the Group transferred 3,618,878 treasury shares to employee stock ownership association (3,282,343 shares of discounted acquisition and 336,535 shares of free acquisition) and, accordingly, gain on disposal of treasury of ₩ 191,247 million occurred. |
October 31, 2021 |
||||||||||||
Issued shares |
Treasury shares |
Outstanding shares |
||||||||||
(In shares) |
||||||||||||
The number of outstanding shares |
728,002,365 | (40,381,692 | ) | 687,620,673 |
December 31, 2020 |
||||||||||||
Issued shares |
Treasury shares |
Outstanding shares |
||||||||||
(In shares) |
||||||||||||
The number of outstanding shares |
728,002,365 | (44,000,570 | ) | 684,001,795 |
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Equity-accounted investees — share of other comprehensive income (loss) |
₩ | 33,332 | (57,542 | ) | ||||
Foreign operations — foreign currency translation differences |
437,451 | (360,247 | ) | |||||
Gain on valuation of derivatives |
29,439 | 12,336 | ||||||
|
|
|
|
|||||
₩ | 500,222 | (405,453 | ) | |||||
|
|
|
|
2021 |
||||||||||||
Beginning |
Change |
Ending |
||||||||||
(In millions of won) |
||||||||||||
Equity-accounted investees — share of other comprehensive income (loss) |
₩ | (57,542 | ) | 90,874 | 33,332 | |||||||
Foreign operations — foreign currency translation differences |
(360,247 | ) | 797,698 | 437,451 | ||||||||
Gain (loss) on valuation of derivatives |
12,336 | 17,103 | 29,439 | |||||||||
|
|
|
|
|
|
|||||||
₩ | (405,453 | ) | 905,675 | 500,222 | ||||||||
|
|
|
|
|
|
2020 |
||||||||||||
Beginning |
Change |
Ending |
||||||||||
(In millions of won) |
||||||||||||
Equity-accounted investees — share of other comprehensive income (loss) |
₩ | 3,278 | (60,820 | ) | (57,542 | ) | ||||||
Foreign operations — foreign currency translation differences |
(314,966 | ) | (45,281 | ) | (360,247 | ) | ||||||
Gain on valuation of derivatives |
12,753 | (417 | ) | 12,336 | ||||||||
|
|
|
|
|
|
|||||||
₩ | (298,935 | ) | (106,518 | ) | (405,453 | ) | ||||||
|
|
|
|
|
|
October 31, 2021 |
December 31, 2020 |
|||||||
(In millions of won) |
||||||||
Legal reserve 1 |
₩ | 429,983 | 349,954 | |||||
Discretionary reserve 2 |
235,506 | 235,506 | ||||||
Unappropriated retained earnings |
52,862,086 | 46,410,268 | ||||||
|
|
|
|
|||||
₩ | 53,527,575 | 46,995,728 | ||||||
|
|
|
|
1 |
The Commercial Code of the Republic of Korea requires the Parent Company to appropriate for each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued capital stock. The reserve is not available for cash dividends payment, but may be transferred to capital stock or used to reduce accumulated deficit. |
2 |
Discretionary reserve is a reserve for technology development. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won and in thousands of shares) |
||||||||||||
Type of dividends |
Cash Dividends | Cash Dividends | Cash Dividends | |||||||||
Outstanding ordinary shares |
687,621 | 684,002 | 684,002 | |||||||||
Par value (in won) |
₩ | 5,000 | 5,000 | 5,000 | ||||||||
Dividend rate |
31% | 23% | 20% | |||||||||
Total dividends |
₩ | 1,058,936 | 800,282 | 684,002 |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Dividends |
₩ | 1,058,936 | 800,282 | 684,002 | ||||||||
Profit attributable to owners of the Parent Company |
7,309,517 | 4,755,102 | 2,005,975 | |||||||||
Dividend payout ratio 1 |
14.49% | 16.83% | 34.10% |
1 |
Due to the difference in reporting period between the prior years and the current period, the current rate is different from the annual rate. |
2021 |
2020 |
2019 |
||||||||||
(In won) |
||||||||||||
Dividends per share |
₩ | 1,540 | 1,170 | 1,000 | ||||||||
Closing stock price |
103,000 | 118,500 | 94,100 | |||||||||
Dividend yield ratio |
1.50% | 0.99% | 1.06% |
1 |
Due to the difference in reporting period between the prior years and the current period, the current rate is different from the annual rate. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Sale of goods |
₩ | 33,920,345 | 31,837,538 | 26,922,416 | ||||||||
Providing services |
53,948 | 62,880 | 68,317 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 33,974,293 | 31,900,418 | 26,990,733 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
DRAM |
₩ | 24,413,236 | 22,536,404 | 20,292,687 | ||||||||
NAND Flash |
8,040,201 | 7,471,242 | 5,139,563 | |||||||||
Other |
1,520,856 | 1,892,772 | 1,558,483 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 33,974,293 | 31,900,418 | 26,990,733 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Korea |
₩ | 1,174,928 | 1,452,006 | 1,446,997 | ||||||||
China |
12,810,386 | 12,217,634 | 12,570,278 | |||||||||
Taiwan |
2,370,792 | 1,905,650 | 1,444,188 | |||||||||
Asia (other than China and Taiwan) |
3,288,069 | 2,416,321 | 2,301,314 | |||||||||
U.S.A. |
13,065,022 | 12,686,108 | 8,141,151 | |||||||||
Europe |
1,265,096 | 1,222,699 | 1,086,805 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 33,974,293 | 31,900,418 | 26,990,733 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Performance obligations satisfied at a point in time |
₩ | 33,920,345 | 31,837,538 | 26,922,416 | ||||||||
Performance obligations satisfied over time |
53,948 | 62,880 | 68,317 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 33,974,293 | 31,900,418 | 26,990,733 | |||||||||
|
|
|
|
|
|
Nature and timing of performance obligation satisfaction |
Revenue recognition policies | |||
Sale of goods |
Revenue is recognized when the customer obtains control of that asset, which is typically upon delivery or shipment depending on the terms of the contract. When the good is defective, the customer is granted the right to return the defective goods in exchange for a functioning product or cash. |
Revenue is measured at the amount of consideration for the sale of goods, reflecting the expected amount of return estimated through historical information. The Group’s right to recover products from customers and refund liability are recognized. Refund liability is initially measured at the former carrying amount of the product less any expected costs to recover those products. Refund liability is included in other current liabilities (See note 19) and right to recover products from customers is included in other current assets (See note 10).The Group reviews its estimate of expected returns at the end of each reporting period and updates the amounts of the asset and liabilities accordingly. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Selling and administrative expenses: |
||||||||||||
Salaries |
₩ | 638,686 | 592,894 | 516,226 | ||||||||
Defined benefit plan |
36,969 | 40,927 | 34,692 | |||||||||
Employee benefits |
146,959 | 159,600 | 141,104 | |||||||||
Commission |
387,111 | 334,570 | 460,644 | |||||||||
Depreciation |
178,860 | 245,858 | 206,429 | |||||||||
Amortization |
428,094 | 719,652 | 687,365 | |||||||||
Freight and custody charge |
39,996 | 48,617 | 40,222 | |||||||||
Legal cost |
7,798 | 20,323 | 31,679 | |||||||||
Rental |
10,967 | 8,944 | 6,933 | |||||||||
Taxes and dues |
66,650 | 56,934 | 54,525 | |||||||||
Training |
51,744 | 67,626 | 43,217 | |||||||||
Advertising |
72,313 | 95,158 | 92,792 | |||||||||
Utilities |
12,927 | 13,688 | 12,193 | |||||||||
Supplies |
74,888 | 100,748 | 99,029 | |||||||||
Repair |
20,938 | 26,541 | 29,546 | |||||||||
Travel and transportation |
3,876 | 4,692 | 16,731 | |||||||||
Others |
173,348 | 149,935 | 123,770 | |||||||||
|
|
|
|
|
|
|||||||
2,352,124 | 2,686,707 | 2,597,097 | ||||||||||
|
|
|
|
|
|
|||||||
Research and development: |
||||||||||||
Expenditure on research and development |
3,219,264 | 3,370,318 | 3,188,531 | |||||||||
Development cost capitalized |
(325,845 | ) | (259,020 | ) | (332,888 | ) | ||||||
|
|
|
|
|
|
|||||||
2,893,419 | 3,111,298 | 2,855,643 | ||||||||||
|
|
|
|
|
|
|||||||
₩ | 5,245,543 | 5,798,005 | 5,452,740 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 2 |
||||||||||
(In millions of won) |
||||||||||||
Changes in finished goods and work-in-process |
₩ | (845,052) | (616,725 | ) | (523,777 | ) | ||||||
Raw materials, supplies and consumables |
6,652,116 | 7,649,164 | 6,787,445 | |||||||||
Employee benefit |
4,379,783 | 3,833,439 | 3,411,234 | |||||||||
Depreciation and others |
8,778,793 | 9,764,776 | 8,605,492 | |||||||||
Commission |
2,002,944 | 2,149,025 | 2,113,753 | |||||||||
Utilities |
1,291,681 | 1,459,346 | 1,366,041 | |||||||||
Repair |
1,056,337 | 1,129,642 | 1,080,705 | |||||||||
Outsourcing |
853,737 | 1,188,589 | 1,128,458 | |||||||||
Others |
886,355 | 639,284 | 650,002 | |||||||||
Transfer: capitalized development cost and others |
(470,270 | ) | (308,746 | ) | (347,799 | ) | ||||||
|
|
|
|
|
|
|||||||
Total 1 |
₩ | 24,586,424 | 26,887,794 | 24,271,554 | ||||||||
|
|
|
|
|
|
1 |
Total expenses consist of cost of sales and selling and administrative expenses. |
2 |
Expenses for the year ended December 31, 2019 was reclassified to conform with the classification for the ten-month period ended October 31, 2021 and for the year ended December 31, 2020. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Finance income: |
||||||||||||
Interest income |
₩ | 18,496 | 27,872 | 30,062 | ||||||||
Dividend income |
7,875 | 1,325 | 429 | |||||||||
Foreign exchange differences 1 |
1,440,639 | 1,527,580 | 1,143,099 | |||||||||
Gain on valuation of short-term investment assets |
— | 2,592 | 5,811 | |||||||||
Gain on valuation of long-term investment assets |
520,232 | 1,741,026 | 8,237 | |||||||||
Gain on disposal of short-term investment assets |
37,127 | 27,510 | 58,784 | |||||||||
Gain on disposal of long-term investment assets |
15,776 | — | 1,218 | |||||||||
|
|
|
|
|
|
|||||||
2,040,145 | 3,327,905 | 1,247,640 | ||||||||||
|
|
|
|
|
|
|||||||
Finance expenses: |
||||||||||||
Interest expenses |
218,137 | 253,468 | 245,440 | |||||||||
Foreign exchange differences 2 |
1,102,436 | 1,717,989 | 1,043,720 | |||||||||
Loss on valuation of short-term investment assets |
8,938 | — | — | |||||||||
Loss on disposal of long-term investment assets |
3 | — | 786 | |||||||||
Loss on valuation of long-term investment assets |
1,704 | 7,273 | 241,471 | |||||||||
Loss on valuation of financial liabilities |
125 | 1,681 | — | |||||||||
|
|
|
|
|
|
|||||||
1,331,343 | 1,980,411 | 1,531,417 | ||||||||||
|
|
|
|
|
|
|||||||
Net finance income (expense) |
₩ | 708,802 | 1,347,494 | (283,777 | ) | |||||||
|
|
|
|
|
|
1 |
Gain on foreign currency translation related to fair value of long-term investment assets amounting to ₩11,665 million is included for the ten-month period ended October 31, 2021 and ₩100 million is included for the years ended December 31, 2020 (2019: ₩212,450 million), respectively. |
2 |
Loss on foreign currency translation related to fair value of long-term investment assets amounting to ₩127,348 million is included for the ten-month period ended October 31, 2021 and ₩44,314 million is included for the years ended December 31, 2020 (2019: ₩1,931 million), respectively. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Gain on disposal of property, plant and equipment |
₩ | 57,014 | 38,585 | 26,158 | ||||||||
Others |
24,427 | 46,188 | 62,021 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 81,441 | 84,773 | 88,179 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Loss on disposal of property, plant and equipment |
₩ | 7,330 | 44,955 | 11,531 | ||||||||
Loss on disposal of intangible assets |
2,938 | 4,841 | 7,668 | |||||||||
Loss on disposal of trade receivables |
4,216 | 6,320 | 8,564 | |||||||||
Loss on impairment of intangible assets |
43,453 | 16,544 | 71 | |||||||||
Donation |
59,526 | 70,461 | 59,522 | |||||||||
Others |
28,017 | 28,454 | 26,219 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 145,480 | 171,575 | 113,575 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Current tax: |
||||||||||||
Current tax on profits for the year |
₩ | 2,632,016 | 1,113,166 | 603,692 | ||||||||
Adjustments for the current tax liabilities attributable to prior year, but recognized in current year |
100,008 | (24,653 | ) | (85,520 | ) | |||||||
|
|
|
|
|
|
|||||||
2,732,024 | 1,088,513 | 518,172 | ||||||||||
|
|
|
|
|
|
|||||||
Deferred tax: |
||||||||||||
Changes in net deferred tax assets |
183,299 | 389,610 | (94,611 | ) | ||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ | 2,915,323 | 1,478,123 | 423,561 | ||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Profit before income tax |
₩ | 10,236,718 | 6,237,037 | 2,432,639 | ||||||||
Tax calculated at domestic tax rates applicable to profits in the respective countries |
2,867,154 | 1,704,823 | 658,614 | |||||||||
Tax effects of: |
||||||||||||
Tax-exempt income |
(5,840 | ) | (70,922 | ) | (36,618 | ) | ||||||
Non-deductible expenses |
6,435 | 19,977 | 11,694 | |||||||||
Changes in unrecognized deferred tax assets |
53,251 | 8,667 | (93,041 | ) | ||||||||
Tax credits |
(129,703 | ) | (118,011 | ) | (102,755 | ) | ||||||
Adjustments for the current tax liabilities attributable to prior year, but recognized in current year |
100,007 | (24,653 | ) | (85,520 | ) | |||||||
Others |
24,019 | (41,758 | ) | 71,187 | ||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ | 2,915,323 | 1,478,123 | 423,561 | ||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Remeasurements of defined benefit liabilities |
₩ | (8,544 | ) | 169 | 34,132 | |||||||
Gain on valuation of derivatives |
(6,094 | ) | (680 | ) | (4,837 | ) | ||||||
Gain on disposal of treasury stock |
(72,542 | ) | ||||||||||
|
|
|
|
|
|
|||||||
₩ | (87,180 | ) | (511 | ) | 29,295 | |||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won, except for shares and per share information) |
||||||||||||
Profit attributable to ordinary shareholders of the Parent Company |
₩ | 7,309,517 | 4,755,102 | 2,005,975 | ||||||||
Weighted average number of outstanding ordinary shares 1 |
686,168,360 | 684,001,795 | 684,001,795 | |||||||||
Basic earnings per share (in won) |
₩ | 10,653 | 6,952 | 2,933 |
1 |
Weighted average number of outstanding ordinary shares is calculated as follows: |
2021 |
2020 |
2019 |
||||||||||
(In shares) |
||||||||||||
Outstanding ordinary shares |
728,002,365 | 728,002,365 | 728,002,365 | |||||||||
Acquisition of treasury shares |
(41,834,005 | ) | (44,000,570 | ) | (44,000,570 | ) | ||||||
|
|
|
|
|
|
|||||||
Weighted average number of outstanding ordinary shares |
686,168,360 | 684,001,795 | 684,001,795 | |||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won, except for shares and per share amounts) |
||||||||||||
Profit attributable to ordinary shareholders of the Parent Company |
₩ | 7,309,517 | 4,755,102 | 2,005,975 | ||||||||
Weighted average number of diluted outstanding ordinary shares 1 |
686,419,424 | 684,139,222 | 684,089,944 | |||||||||
Diluted earnings per share (in won) |
₩ | 10,649 | 6,950 | 2,932 |
1 |
Weighted average number of diluted ordinary shares outstanding is calculated as follows: |
2021 |
2020 |
2019 |
||||||||||
(In shares) |
||||||||||||
Weighted average number of outstanding ordinary shares |
686,168,360 | 684,001,795 | 684,001,795 | |||||||||
Stock options |
251,064 | 137,427 | 88,149 | |||||||||
|
|
|
|
|
|
|||||||
Weighted average number of diluted outstanding ordinary shares |
686,419,424 | 684,139,222 | 684,089,944 | |||||||||
|
|
|
|
|
|
Type |
Name of related parties | |
Associates |
Stratio, Inc., SK China Company Limited, Gemini Partners Pte. Ltd., TCL Fund, SK South East Asia Investment Pte. Ltd., Hushan Xinju (Chengdu) Venture Investment Center (Smartsource), Prume Social Farm, Co., Ltd., Wuxi xinfa IC industry park., Ltd., Magnus Private Investment Co., Ltd., L&S (No.10) Early Stage III Investment Association, SiFive Inc., YD-SK-KDB Ningbo Zhongxin Venture Capital Partnership (Limited Partnership), Jiangsu KVTS Semiconductor Science and Technology Co., Ltd. | |
Joint ventures |
HITECH Semiconductor (Wuxi) Co., Ltd., Hystars Semiconductor (Wuxi) Co., Ltd., Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor, Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor |
Type |
Name of related parties | |
Other related parties |
SK Telecom Co., Ltd., which has significant influence over the Group, SK Inc. (formerly, SK Holdings Co., Ltd.), which has control over SK Telecom Co., Ltd., and their subsidiaries |
For the ten-month period ended October 31, 2021 |
||||||||||||||||||||||
Company |
Operating revenue and others |
Operating expense and others |
Asset acquisition |
Dividend income |
Borrowings |
|||||||||||||||||
(In millions of won) |
||||||||||||||||||||||
Associate |
SK China Company Limited | ₩ | 21 | 8,923 | — | — | — | |||||||||||||||
Joint ventures |
HITECH Semiconductor (Wuxi) Co., Ltd. |
2,442 | 456,081 | 36,164 | 17,115 | — | ||||||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. | 193 | 19,913 | 9,075 | — | 77,633 | |||||||||||||||||
Magnus Private Investment Co., Ltd., | 45,610 | 302 | — | — | — | |||||||||||||||||
Other related parties |
SK Telecom Co., Ltd. 1 |
73,059 | 191,180 | 7,414 | — | — | ||||||||||||||||
SK Inc. 2 |
20,768 | 248,242 | 136,167 | — | — | |||||||||||||||||
ESSENCORE Limited | 721,250 | — | — | — | — | |||||||||||||||||
SK Ecoplant Co.,Ltd. (formerly, SK Engineering & Construction Co., Ltd.) |
24,519 | 260 | 998,929 | — | — | |||||||||||||||||
SK Energy Co., Ltd. | 35,858 | 69,434 | 2,558 | — | — | |||||||||||||||||
SK Networks Co., Ltd. | 5,933 | 7,409 | 386 | — | — | |||||||||||||||||
SKC Solmics Co., Ltd. | 845 | 111,780 | 289 | — | — | |||||||||||||||||
Chungcheong energy service Co., Ltd. | 28 | 19,959 | — | — | — | |||||||||||||||||
SK Materials Co., Ltd. | 3,645 | 97,990 | — | — | — | |||||||||||||||||
SK Siltron Co., Ltd. |
26,645 | 285,215 | — | — | — | |||||||||||||||||
SK Airgas Co., Ltd. | 574 | 106,853 | — | — | — | |||||||||||||||||
Techdream Co., Ltd | — | 100,911 | — | — | — | |||||||||||||||||
SK Trichem Co., Ltd. | 531 | 116,818 | — | — | — | |||||||||||||||||
SK Shieldus Co., Ltd. | 1,738 | 62,077 | 15,194 | — | — | |||||||||||||||||
SK Innovation Co., Ltd. | 27,959 | 56,473 | 44 | — | — | |||||||||||||||||
Others | 111,797 | 228,588 | 37,663 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ | 1,103,415 | 2,188,408 | 1,243,883 | 17,115 | 77,633 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
1 |
Operating expense and others include dividend payments of ₩170,937 million. |
2 |
For the ten-month period ended October 31, 2021, royalty paid for the use of the SK brand amounted to ₩53,498 million. |
For the year ended December 31, 2020 |
||||||||||||||||||
Company |
Operating revenue and others |
Operating expense and others |
Asset acquisition |
Dividend income |
||||||||||||||
(In millions of won) |
||||||||||||||||||
Associate |
SK China Company Limited | ₩ | 18 | 8,019 | — | — | ||||||||||||
Joint ventures |
HITECH Semiconductor (Wuxi) Co., Ltd. | 4,766 | 543,575 | 21,780 | 15,033 | |||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. | 168 | — | — | — | ||||||||||||||
Other related parties |
SK Telecom Co., Ltd. 1 |
135,050 | 166,019 | 82,044 | — | |||||||||||||
SK Inc. 2 |
20,905 | 264,994 | 272,980 | — | ||||||||||||||
ESSENCORE Limited | 675,915 | — | — | — | ||||||||||||||
SK Ecoplant Co.,Ltd. | 42,814 | 8,507 | 1,375,083 | — | ||||||||||||||
SK Energy Co., Ltd. | 50,035 | 72,386 | — | — | ||||||||||||||
SK Networks Co., Ltd. | 6,638 | 9,434 | 526 | — | ||||||||||||||
SKC Solmics Co., Ltd. | 623 | 93,862 | 178 | — | ||||||||||||||
Chungcheong energy service Co., Ltd. | 118 | 24,335 | — | — | ||||||||||||||
SK Materials Co., Ltd. | 4,349 | 95,007 | — | — | ||||||||||||||
SK Siltron Co., Ltd. |
32,429 | 380,571 | — | — | ||||||||||||||
SK Airgas Co., Ltd. | 13,220 | 75,990 | 110,858 | — | ||||||||||||||
Others | 173,971 | 631,656 | 65,385 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
₩ | 1,161,019 | 2,374,355 | 1,928,834 | 15,033 | ||||||||||||||
|
|
|
|
|
|
|
|
1 |
Operating expense and others include dividend payments of ₩146,100 million. |
2 |
For the year ended December 31, 2020, royalty paid for the use of the SK brand amounted to ₩54,434 million. |
For the year ended December 31, 2019 |
||||||||||||||||||
Company |
Operating revenue and others |
Operating expense and others |
Asset acquisition |
Dividend income |
||||||||||||||
(In millions of won) |
||||||||||||||||||
Associate |
SK China Company Limited | ₩ | 15 | 10,954 | — | — | ||||||||||||
Joint ventures |
HITECH Semiconductor(Wuxi) Co., Ltd. | 4,362 | 656,911 | 1,616 | 14,458 | |||||||||||||
Hystars Semiconductor (Wuxi) Co., Ltd. | 238 | — | — | — | ||||||||||||||
Other related parties |
SK Telecom Co., Ltd. 1 |
167,878 | 242,559 | 10,699 | — | |||||||||||||
SK Inc. 2 |
25,912 | 265,496 | 259,280 | — | ||||||||||||||
ESSENCORE Limited | 708,497 | — | — | — | ||||||||||||||
SK Ecoplant Co.,Ltd. | 60,886 | 1,249 | 1,851,230 | — | ||||||||||||||
SK Energy Co., Ltd. | 62,220 | 73,717 | — | — | ||||||||||||||
SK Networks Co., Ltd. | 12,704 | 12,698 | — | — | ||||||||||||||
SKC Solmics Co., Ltd. | 676 | 82,814 | 1,067 | — | ||||||||||||||
Chungcheong energy service Co., Ltd. | 215 | 27,215 | — | — | ||||||||||||||
SK Materials Co., Ltd. | 4,118 | 79,000 | — | — | ||||||||||||||
SK Siltron Co., Ltd. |
32,411 | 397,327 | — | — | ||||||||||||||
SK Airgas Co., Ltd. | 106 | 72,675 | — | — | ||||||||||||||
Others | 163,648 | 484,678 | 68,445 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
₩ | 1,243,886 | 2,407,293 | 2,192,337 | 14,458 | ||||||||||||||
|
|
|
|
|
|
|
|
1 |
Operating expense and others include dividend payments of ₩219,200 million. |
2 |
For the year ended December 31, 2019, royalty paid for the use of the SK brand amounted to ₩82,629 million. |
October 31, 2021 |
||||||||||
Company |
Trade receivables and others |
Other payables and others |
||||||||
(In millions of won) |
||||||||||
Associate |
SK China Company Limited | ₩ | 3 | 9,151 | ||||||
Joint ventures |
HITECH Semiconductor (Wuxi) Co., Ltd. | 203 | 432,586 | |||||||
Hystars Semiconductor (Wuxi) Co., Ltd. 1 |
15 | 184,675 | ||||||||
Magnus Private Investment Co., Ltd., | 781 | 5 | ||||||||
Other related parties |
SK Telecom Co., Ltd. |
2,591 | 7,463 | |||||||
SK Inc. | 1,453 | 125,579 | ||||||||
ESSENCORE Limited | 30,550 | — | ||||||||
SK Ecoplant Co.,Ltd. | 3,746 | 397,609 | ||||||||
SK Energy Co., Ltd. | 1,626 | 17,119 | ||||||||
SK Networks Co., Ltd. | 161 | 1,378 | ||||||||
SKC solmics Co., Ltd. | 91 | 40,750 | ||||||||
Chungcheong energy service Co., Ltd. | — | 1,194 | ||||||||
SK Materials Co., Ltd. | 675 | 11,596 | ||||||||
SK Siltron Co., Ltd. 1 |
3,287 | 31,910 | ||||||||
SK Airgas Co., Ltd. | 28 | 379,088 | ||||||||
Techdream Co., Ltd | — | 7,010 | ||||||||
SK Trichem Co., Ltd. | 120 | 14,565 | ||||||||
SK Shieldus Co., Ltd. | 3,144 | 21,116 | ||||||||
SK Inovation Co., Ltd. | 639 | 4,305 | ||||||||
Others | 26,831 | 42,289 | ||||||||
|
|
|
|
|||||||
₩ | 75,944 | 1,729,388 | ||||||||
|
|
|
|
1 |
Trade Other payables and others include ₩77,633 million of borrowings. |
December 31, 2020 |
||||||||||
Company |
Trade receivables and others |
Other payables and others |
||||||||
(In millions of won) |
||||||||||
Associate |
SK China Company Limited | ₩ | 7 | 8,771 | ||||||
Joint ventures |
HITECH Semiconductor (Wuxi) Co., Ltd. | 198 | 417,730 | |||||||
Hystars Semiconductor (Wuxi) Co., Ltd. |
7 | — | ||||||||
Other related parties | SK Telecom Co., Ltd. |
10,747 | 7,920 | |||||||
SK Inc. |
1,757 | 176,752 | ||||||||
ESSENCORE Limited |
55,500 | — | ||||||||
SK Ecoplant Co.,Ltd. | 3,397 | 592,630 | ||||||||
SK Energy Co., Ltd. | 1,204 | 22,328 | ||||||||
SK Networks Co., Ltd. | 289 | 1,712 | ||||||||
SKC solmics Co., Ltd. | 74 | 24,128 | ||||||||
Chungcheong energy service Co., Ltd. | 69 | 3,295 | ||||||||
SK Materials Co., Ltd. | 411 | 10,130 | ||||||||
SK Siltron Co., Ltd. 1 |
44,847 | 36,792 | ||||||||
SK Airgas Co., Ltd. | 12 | 390,967 | ||||||||
Others | 31,324 | 124,499 | ||||||||
|
|
|
|
|||||||
₩ | 149,843 | 1,817,654 | ||||||||
|
|
|
|
1 |
Trade receivable and others include ₩42,432 million advance paid for the purchase of wafers (See note 35-(9)). |
Details |
2021 |
2020 |
2019 |
|||||||||
(In millions of won) |
||||||||||||
Salaries |
₩ | 4,502 | 5,006 | 3,849 | ||||||||
Defined benefit plan related expenses |
533 | 545 | 406 | |||||||||
Share-based payment |
725 | 1,175 | 954 | |||||||||
|
|
|
|
|
|
|||||||
₩ | 5,760 | 6,726 | 5,209 | |||||||||
|
|
|
|
|
|
Book value |
Pledged amount |
|||||||||||||||||||||
Category |
Currency |
Amount |
Currency |
Amount in USD |
Amount in KRW |
Remark |
||||||||||||||||
(In millions of won and millions of foreign currencies) |
||||||||||||||||||||||
Land and buildings |
KRW | 140,039 | USD | 133 | 156,386 | |
Borrowings for equipment and others |
| ||||||||||||||
KRW | — | 14,854 | ||||||||||||||||||||
Machinery |
KRW | 4,608,294 | USD | 6,600 | 7,733,768 | |||||||||||||||||
KRW | — | 1,020,000 | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
USD | 6,733 | 7,890,154 | ||||||||||||||||||||
KRW | 4,748,333 | KRW | — | 1,034,854 | ||||||||||||||||||
|
|
|
|
|
|
Financial Institution |
Commitment |
Currency |
Amount |
|||||||
(In millions of won and millions of foreign currencies) |
||||||||||
The Parent Company |
Hana Bank and others |
Import finance including usance | USD | 422 | ||||||
Comprehensive limit contract for import and export including usance | USD | 1,323 | ||||||||
Overdrafts with banks |
KRW | 20,000 | ||||||||
Accounts receivable factoring contracts which have no right to recourse |
KRW | 70,000 | ||||||||
SK hynix Semiconductor (China) Ltd. |
Agricultural Bank of China and others |
Import finance including usance | RMB USD |
|
950 490 |
| ||||
SK hynix America Inc. and other sales entities |
Citibank and others |
Accounts receivable factoring contracts which have no right to recourse |
USD | 942 | ||||||
Domestic subsidiaries |
Hana Bank and others |
Import finance including usance | USD | 45 |
Currency |
Amount |
Remark | ||||||
(In millions of U.S. dollars) | ||||||||
Wuxi Xinfa Group Co., Ltd. 1 |
RMB | 698 | Guarantees for borrowing |
1 |
The Group provides payment guarantee to Wuxi Xinfa Group Co., Ltd. for borrowings and accrued interests of Hystars Semiconductor (Wuxi) Co., Ltd., a joint venture of the Group. |
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Profit for the period |
₩ | 7,321,395 | 4,758,914 | 2,009,078 | ||||||||
Adjustment |
||||||||||||
Income tax expense |
2,915,323 | 1,478,123 | 423,561 | |||||||||
Defined benefit plan related expenses |
209,272 | 251,552 | 220,999 | |||||||||
Depreciation of property, plant and equipment |
7,853,312 | 8,515,134 | 7,511,794 | |||||||||
Depreciation of investment property |
1,426 | 291 | 37 | |||||||||
Amortization |
650,878 | 960,550 | 795,169 | |||||||||
Depreciation of right-of-use |
282,138 | 296,218 | 313,415 | |||||||||
Share-based compensation expenses |
1,957 | 1,591 | 1,738 | |||||||||
Loss on disposal of property, plant and equipment |
7,330 | 44,955 | 11,531 | |||||||||
Loss on disposal of intangible assets |
2,938 | 4,841 | 7,668 | |||||||||
Loss on impairment of intangible assets |
43,453 | 16,544 | 71 | |||||||||
Loss on valuation of short-term investment asset |
8,938 | — | — | |||||||||
Loss on disposal of short-term investment assets |
125 | — | — | |||||||||
Loss on valuation of long-term investment asset |
3 | 7,273 | 241,471 | |||||||||
Impairment loss on associate investment |
— | — | 1,695 | |||||||||
Loss on valuation of financial liabilities |
1,704 | 1,681 | — | |||||||||
Interest expense |
218,137 | 253,468 | 245,440 | |||||||||
Loss on foreign currency translation |
530,637 | 375,504 | 250,974 | |||||||||
Loss on disposal of trade receivables |
4,216 | 6,320 | 8,564 | |||||||||
Loss (gain) on equity method investments, net |
(204,086 | ) | 36,279 | (24,328 | ) | |||||||
Gain on disposal of property, plant and equipment |
(57,014 | ) | (38,585 | ) | (26,158 | ) | ||||||
Gain on disposal of intangible assets |
— | (122 | ) | — | ||||||||
Gain on valuation of short-term investment assets |
— | (2,592 | ) | (5,811 | ) | |||||||
Gain on disposal of short-term investment assets |
(37,127 | ) | (27,510 | ) | (58,784 | ) | ||||||
Gain on valuation of long-term investment assets |
(520,232 | ) | (1,741,026 | ) | (8,237 | ) | ||||||
Gain on disposal of long-term investment assets |
(15,776 | ) | — | (1,218 | ) | |||||||
Interest income |
(18,496 | ) | (27,872 | ) | (30,062 | ) | ||||||
Gain on foreign currency translation |
(407,483 | ) | (595,266 | ) | (263,012 | ) | ||||||
Others, net |
157,468 | (9,646 | ) | 99 | ||||||||
Changes in operating assets and liabilities |
||||||||||||
Decrease (increase) in trade receivables |
(1,599,109 | ) | (935,346 | ) | 2,214,776 | |||||||
Decrease (increase) in loans and other receivables |
(8,332 | ) | 5,303 | 41,676 | ||||||||
Increase in inventories |
(839,741 | ) | (843,842 | ) | (851,735 | ) | ||||||
Decrease (increase) in other assets |
(202,281 | ) | 47,350 | 114,792 | ||||||||
Increase (decrease) in trade payables |
(291,814 | ) | 222,036 | (278,529 | ) | |||||||
Decrease in other payables |
263,345 | (6,583 | ) | (16,623 | ) | |||||||
Increase (decrease) in other non-trade payables |
733,596 | 158,514 | (645,164 | ) | ||||||||
Increase (decrease) in provisions |
4,712 | 12,008 | (42,787 | ) | ||||||||
Increase in other liabilities |
31,487 | 46,961 | 17,605 | |||||||||
Payment of defined benefit liabilities |
(629 | ) | (585 | ) | (4,120 | ) | ||||||
Contributions to plan assets |
(211 | ) | (355,664 | ) | (279,751 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash generated from operating activities |
₩ | 17,041,459 | 12,916,771 | 11,895,834 | ||||||||
|
|
|
|
|
|
2021 |
2020 |
2019 |
||||||||||
(In millions of won) |
||||||||||||
Increase in other payables related to acquisition of property, plant and equipment |
₩ | 1,480,098 | 1,721,481 | 1,786,787 | ||||||||
Transfer of investment property to property, plant and equipment |
— | — | 1,105 | |||||||||
Transfer of property, plant and equipment to investment property |
— | 209,450 | — |
2021 |
2020 |
|||||||
(In millions of won) |
||||||||
Beginning balance |
₩ | 12,895,364 | 12,190,505 | |||||
Cash flows from financing activities |
||||||||
Proceeds from borrowings |
5,230,157 | 5,173,016 | ||||||
Repayments of borrowings |
(2,975,415 | ) | (3,921,310 | ) | ||||
Payments of lease liabilities |
(264,409 | ) | (319,740 | ) | ||||
Increase of lease liabilities |
81,783 | 293,855 | ||||||
Foreign currency differences |
700,052 | (557,923 | ) | |||||
Present value discount (interest expense) |
42,082 | 43,885 | ||||||
Interest paid |
(7,754 | ) | (6,924 | ) | ||||
|
|
|
|
|||||
Ending balance |
₩ | 15,701,860 | 12,895,364 | |||||
|
|
|
|
Total numbers of share option granted |
Exercised |
Forfeited or Cancelled |
Outstanding at October 31, 2021 |
|||||||||||||
(In shares) |
||||||||||||||||
1 st |
99,600 | — | — | 99,600 | ||||||||||||
2 nd |
99,600 | — | — | 99,600 | ||||||||||||
3 rd |
99,600 | — | — | 99,600 | ||||||||||||
4 th |
7,747 | 7,747 | — | — | ||||||||||||
5 th |
7,223 | — | — | 7,223 | ||||||||||||
6 th |
8,171 | — | 8,171 | — | ||||||||||||
7 th |
61,487 | — | — | 61,487 | ||||||||||||
8 th |
61,487 | — | — | 61,487 | ||||||||||||
9 th |
61,487 | — | — | 61,487 | ||||||||||||
10 th |
54,020 | — | — | 54,020 | ||||||||||||
11 th |
6,397 | — | — | 6,397 | ||||||||||||
12 th |
6,469 | — | 6,469 | |||||||||||||
13 th |
75,163 | — | 75,163 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
648,451 | 7,747 | 8,171 | 632,533 | |||||||||||||
|
|
|
|
|
|
|
|
Grant date |
Service Period for Vesting |
Exercisable Period |
Exercise price (in Korean Won) |
|||||||||
1 st |
March 24, 2017 | March 24, 2017—March 24, 2019 | March 25, 2019—March 24, 2022 | ₩ | 48,400 | |||||||
2 nd |
March 24, 2017 | March 24, 2017—March 24, 2020 | March 25, 2020—March 24, 2023 | 52,280 | ||||||||
3 rd |
March 24, 2017 | March 24, 2017—March 24, 2021 | March 25, 2021—March 24, 2024 | 56,460 | ||||||||
4 th |
January 1, 2018 | January 1, 2018—December 31, 2019 | January 1, 2020—December 31, 2022 | 77,440 | ||||||||
5 th |
March 28, 2018 | March 28, 2018—March 28, 2020 | March 29, 2020—March 28, 2023 | 83,060 | ||||||||
6 th |
Feb 28, 2019 | February 28, 2019—February 28, 2021 | March 1, 2021—February 29, 2024 | 73,430 | ||||||||
7 th |
March 22, 2019 | March 22, 2019—March 22, 2021 | March 23, 2021—March 22, 2024 | 71,560 | ||||||||
8 th |
March 22, 2019 | March 22, 2019—March 22, 2022 | March 23, 2022—March 22, 2025 | 77,290 | ||||||||
9 th |
March 22, 2019 | March 22, 2019—March 22, 2023 | March 23, 2023—March 22, 2026 | 83,470 | ||||||||
10 th |
March 20, 2020 | March 20, 2020—March 20, 2023 | March 21, 2023—March 20, 2027 | 84,730 | ||||||||
11 th |
March 20, 2020 | March 20, 2020—March 20, 2023 | March 21, 2023—March 20, 2027 | 84,730 | ||||||||
12 th |
March 30, 2021 | March 30, 2021—March 30, 2023 | March 31, 2023—March 30, 2026 | 136,060 | ||||||||
13 th |
March 30, 2021 | March 30, 2021—March 30, 2023 | March 31, 2023—March 30, 2026 | 136,060 |
1 st |
2 nd |
3 rd |
4 th |
5 th |
6 th |
7 th |
8 th |
|||||||||||||||||||||||||
Expected volatility |
23.23 | % | 23.23 | % | 23.23 | % | 22.50 | % | 25.30 | % | 25.60 | % | 26.17 | % | 26.17 | % | ||||||||||||||||
Estimated fair value of share options (in Korean won) |
₩ | 10,026 | 9,613 | 9,296 | 16,687 | 18,362 | 16,505 | 17,744 | 16,888 | |||||||||||||||||||||||
Dividend yield ratio |
1.20 | % | 1.20 | % | 1.20 | % | 0.78 | % | 1.23 | % | 1.36 | % | 1.98 | % | 1.98 | % | ||||||||||||||||
Risk free rate |
1.86 | % | 1.95 | % | 2.07 | % | 2.38 | % | 2.46 | % | 1.89 | % | 1.82 | % | 1.88 | % |
9 th |
10 th |
11 th |
12 th |
13 th |
||||||||||||||||
Expected volatility |
26.17 | % | 26.15 | % | 26.15 | % | 35.50 | % | 35.50 | % | ||||||||||
Estimated fair value of share options (in Korean won) |
₩ | 16,093 | 11,786 | 11,786 | 39,995 | 39,995 | ||||||||||||||
Dividend yield ratio |
1.98 | % | 2.10 | % | 2.10 | % | 0.70 | % | 0.70 | % | ||||||||||
Risk free rate |
1.91 | % | 1.59 | % | 1.59 | % | 1.55 | % | 1.55 | % |