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 |
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 |
Name of each exchange on which registered | ||
one-half of one share of Common Stock |
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Common Stock, par value 5,000 per share |
* |
Not for trading, but only in connection with the registration of the American Depositary Shares. |
☒ |
Accelerated filer |
☐ | ||||
Non-accelerated filer |
☐ |
Emerging growth company |
U.S. GAAP ☐ |
Other ☐ | |||||||
by the International Accounting Standards Board |
☒ |
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PART I |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 4A. |
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Item 5. |
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Item 11. |
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Item 12. |
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PART II |
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Item 13. |
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Item 14. |
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Item 15. |
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Item 16. |
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Item 16A. |
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Item 16B. |
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Item 16C. |
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Item 16D. |
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Item 16G. |
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Item 16H. |
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Item 16I. |
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PART III |
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Item 17. |
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Item 18. |
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Item 19. |
91 |
• | the cyclical nature of our industry; |
• | our dependence on introducing new products on a timely basis; |
• | our dependence on growth in the demand for our products; |
• | our ability to compete effectively; |
• | our dependence on a select group of key customers; |
• | our ability to successfully manage our capacity expansion and allocation in response to changing industry and market conditions; |
• | our dependence on key personnel; |
• | general economic and political conditions, including those related to the display panel industry; |
• | possible disruptions in commercial activities caused by events such as natural disasters, health epidemics, terrorist activity and armed conflict; |
• | fluctuations in foreign currency exchange rates; and |
• | those other risks identified in the “Risk Factors” section of this annual report. |
Item 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
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 decrease in disposable income of, consumers who purchase the products manufactured by our end-brand customers and a decline in overall consumer confidence and spending levels, which in turn may decrease demand for our products; |
• | disruption in the normal operations of the businesses of our customers, which in turn may decrease demand for our products; |
• | disruption in the supply of raw materials, components and equipment, including semiconductors from our vendors; |
• | disruption in the delivery of our products to our customers; |
• | disruption in the normal operations of our business resulting from contraction of COVID-19 by our employees, which may necessitate our employees to be quarantined and/or our manufacturing facilities or offices to be temporarily shut down; |
• | disruption resulting from the necessity for social distancing, including implementation of temporary adjustment of work arrangements requiring employees to work remotely and restriction on overseas and domestic business travel, which may lead to a reduction in labor productivity; |
• | fluctuations of the Won against major foreign currencies (see “— Our results of operations are subject to exchange rate fluctuations |
• | unstable global and Korean financial markets, which may adversely affect our ability to meet our funding needs on a timely and cost-effective basis; and |
• | decreases in the fair value of our investments in companies that may be adversely affected by the pandemic. |
• | In August 2021, we announced plans to make investments in an aggregate amount of up to W 3.3 trillion in a new fabrication facility in Paju, Korea, which would be used for the production of small- to mid-sized OLED panels. We have begun construction in August 2021, which is expected to continue until the first quarter of 2024. The exact completion date is subject to change based on market conditions and any changes to our investment timetable. |
• | In response to and in anticipation of growing demand in the China market, we established a joint venture with the government of Guangzhou to construct a new fabrication facility to manufacture next generation large-sized OLED panels, which was established under the name of LG Display High-Tech (China) Co., Ltd., in July 2018. We currently hold a 70% ownership interest in the joint venture and the government of Guangzhou holds the remaining 30% ownership interest. We have invested approximately W 6 trillion in capital expenditures for the joint venture and commenced mass production of large-sized OLED panels at such fabrication facility in July 2020. |
• | In July 2017, we announced plans to make investments in an aggregate amount of up to W 7.8 trillion in new large-sized and plastic OLED production lines in Paju, Korea. In July 2019, we announced plans to make additional investments of W 3.0 trillion in the previously announced new large-sized OLED production lines. We are in the process of developing and assessing the specifics of such planned investments, including the timing. |
• | the aggregate number of shares of common stock we have consented to allow to be deposited for the issuance of ADSs (including deposits in connection with offerings of ADSs and stock dividends or other distributions relating to ADSs); and |
• | the number of shares of common stock on deposit with the custodian for the benefit of the depositary at the time of such proposed deposit, |
• | a registration statement filed by us under the U.S. Securities Act of 1933, as amended, 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. |
• | 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, the Euro or the Japanese Yen exchange rates or revaluation of the Chinese Yuan), interest rates, inflation rates or stock markets; |
• | the occurrence of severe health epidemics in Korea or other parts of the world, such as the COVID-19 pandemic; |
• | 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 risk 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 Korean government’s policies to increase minimum wages and limit working hours of employees; |
• | investigations of large Korean business groups and their senior management for possible misconduct; |
• | a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea; |
• | the economic impact of any pending or future free trade agreements or of any changes to existing free trade agreements; |
• | 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 Korean government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, in particular in light of the Korean government’s ongoing efforts to provide emergency relief payments to households and emergency loans to corporations in need of funding in light of COVID-19, which, together, would likely lead to a national budget deficit as well as an increase in the Korean government’s debt; |
• | financial problems or lack of progress in the restructuring of Korean business groups, other large troubled companies, their suppliers or the financial sector; |
• | loss of investor confidence arising from corporate accounting irregularities or corporate governance issues concerning certain Korean companies; |
• | 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 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 Northern 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; |
• | hostilities, political or social tensions involving Russia (including the invasion of Ukraine by Russia and ensuing actions that the United States and other countries have taken or may take in the future) and the resulting adverse effects on the global supply of oil and other natural resources and the global financial markets; 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 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 missile tests, including ballistic missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Korean government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. In February 2016, the Korean 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 Korean 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 Korean government condemned North Korea for the attack and vowed stern retaliation should there be further provocation. |
Item 4. |
INFORMATION ON THE COMPANY |
Item 4.A. |
History and Development of the Company |
Item 4.B. |
Business Overview |
• | TFT array process TFT-LCDs. Once the TFT array process on glass substrates is completed, the substrates are cut into panel-sized pieces; |
• | Color filter process |
• | Cell process |
• | Module assembly process |
• | IT products, which comprise notebook computers (utilizing display panels ranging from 11.6 inches to 17.3 inches in size), desktop monitors (utilizing display panels ranging from 15.6 inches to 49 inches in size) and tablet computers (utilizing display panels ranging from 7.85 inches to 12.9 inches in size); |
• | Televisions, which utilize large-sized display panels ranging from 23 inches to 98 inches in size, including “8K” Ultra HD television panels, which have four times the number of pixels compared to conventional HD television panels; and |
• | Mobile and other applications, which utilize a wide array of display panel sizes, including smartphones and other types of mobile phones and industrial and other applications, such as entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. |
Year ended December 31, |
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2019 (1) |
2020 (1) |
2021 (1) |
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Sales |
% |
Sales |
% |
Sales |
Sales (4) |
% |
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(in billions of Won and millions of US$, except for percentages) |
||||||||||||||||||||||||||||
Korea |
W |
1,265 | 5.4 | % | W |
912 | 3.8 | % | W |
632 | US$ | 532 | 2.1 | % | ||||||||||||||
China |
15,433 | 65.7 | 16,686 | 68.8 | 19,867 | 16,715 | 66.5 | |||||||||||||||||||||
Asia (excluding China) (2) |
2,405 | 10.2 | 2,298 | 9.5 | 3,256 | 2,739 | 10.9 | |||||||||||||||||||||
United States (3) |
1,940 | 8.3 | 2,071 | 8.5 | 3,263 | 2,745 | 10.9 | |||||||||||||||||||||
Europe (excluding Poland) |
1,476 | 6.3 | 1,215 | 5.0 | 1,160 | 976 | 3.9 | |||||||||||||||||||||
Poland |
957 | 4.1 | 1,080 | 4.5 | 1,700 | 1,430 | 5.7 | |||||||||||||||||||||
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Total (4) |
W |
23,476 | 100.0 | % | W |
24,262 | 100.0 | % | W |
29,878 | US$ | 25,137 | 100.0 | % | ||||||||||||||
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(1) | Pursuant to our early adoption of certain amendments to “IAS No. 16 Property, Plant and Equipment: Proceeds before Intended Use |
(2) | Includes Oceania, Africa and the Middle East. |
(3) | Includes other countries in North and South America. |
(4) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 31, 2021 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
• | product portfolio range and availability; |
• | product specifications and performance; |
• | price; |
• | capacity allocation and reliability; |
• | customer service, including product design support; and |
• | logistics support and proximity of regional stocking facilities. |
• | Samsung Display in Korea; |
• | Innolux, AU Optronics and Hannstar in Taiwan; |
• | Japan Display, Sharp and Panasonic in Japan; and |
• | BOE, China Star Optoelectronics Technology, CEC Panda and HKC in China. |
• | incoming quality control with respect to components and raw materials; |
• | in-process quality control, which is conducted at a series of control points in the manufacturing process; and |
• | outgoing quality control, which focuses on packaging, delivery and post-delivery services to customers. |
Subsidiary |
Main Activities |
Jurisdiction of Organization |
Date of Organization |
Capital Stock (in millions of the applicable currency) |
Percentage of Our Ownership Interest |
Percentage of Our Voting Power |
||||||||||||
LG Display Taiwan Co., Ltd. |
Sales |
Taiwan |
April 1999 |
NT$ |
116 |
100 |
% |
100 |
% | |||||||||
LG Display America, Inc. |
Sales |
U.S.A. |
September 1999 |
US$ |
411 |
100 |
% |
100 |
% | |||||||||
LG Display Japan Co., Ltd. |
Sales |
Japan |
October 1999 |
¥ |
95 |
100 |
% |
100 |
% | |||||||||
LG Display Germany GmbH |
Sales |
Germany |
October 1999 |
€ |
1 |
100 |
% |
100 |
% | |||||||||
LG Display Nanjing Co., Ltd. |
Manufacturing |
China |
July 2002 |
CNY |
3,020 |
100 |
% |
100 |
% | |||||||||
LG Display Shanghai Co., Ltd. |
Sales |
China |
January 2003 |
CN |
Y4 |
100 |
% |
100 |
% | |||||||||
LG Display Guangzhou Co., Ltd. |
Manufacturing |
China |
June 2006 |
CNY |
1,655 |
100 |
% |
100 |
% | |||||||||
LG Display Shenzhen Co., Ltd. |
Sales |
China |
July 2007 |
CNY |
4 |
100 |
% |
100 |
% | |||||||||
LG Display Singapore Pte. Ltd. |
Sales |
Singapore |
November 2008 |
US$ |
1 |
100 |
% |
100 |
% | |||||||||
LG Display Yantai Co., Ltd. |
Manufacturing |
China |
March 2010 |
CNY |
1,008 |
100 |
% |
100 |
% | |||||||||
L&T Display Technology (Fujian) Ltd. |
Manufacturing and sales |
China |
December 2009 |
CNY |
116 |
51 |
% |
51 |
% |
Subsidiary |
Main Activities |
Jurisdiction of Organization |
Date of Organization |
Capital Stock (in millions of the applicable currency) |
Percentage of Our Ownership Interest |
Percentage of Our Voting Power |
||||||||||||
Nanumnuri Co., Ltd. |
Workplace services |
Korea |
March 2012 |
W |
800 |
100 |
% |
100 |
% | |||||||||
LG Display (China) Co., Ltd. |
Manufacturing and sales |
China |
December 2012 |
CNY |
8,232 |
70 |
% |
70 |
% | |||||||||
Unified Innovative Technology, LLC |
Managing intellectual property |
U.S.A. |
March 2014 |
US$ |
9 |
100 |
% |
100 |
% | |||||||||
Global OLED Technology LLC |
Managing intellectual property |
U.S.A. |
December 2009 |
US$ |
138 |
100 |
% |
100 |
% | |||||||||
LG Display Guangzhou Trading Co., Ltd. |
Sales |
China |
April 2015 |
CNY |
1 |
100 |
% |
100 |
% | |||||||||
LG Display Vietnam Haiphong Co., Ltd. |
Manufacturing |
Vietnam |
May 2016 |
US$ |
600 |
100 |
% |
100 |
% | |||||||||
Suzhou Lehui Display Co., Ltd. |
Manufacturing and sales |
China |
July 2016 |
CNY |
637 |
100 |
% |
100 |
% | |||||||||
LG Display Fund I LLC |
Investing in new emerging companies |
U.S.A. |
May 2018 |
US$ |
45 |
100 |
% |
100 |
% | |||||||||
LG Display High-Tech (China) Co., Ltd |
Manufacturing and sales |
China |
July 2018 |
CNY |
15,600 |
70 |
% |
70 |
% |
Item 4.C. |
Organizational Structure |
Item 4.D. |
Property, Plants and Equipment |
Fabrication Facility |
Generation (1) |
Mass Production Commencement |
Location |
Gross Floor Area (in square meters) |
Primary Types of Panels Produced | |||||
Korea |
||||||||||
P5 (2) |
5 | May 2003 | Gumi, Korea | 93,227 | TFT-LCD for notebook computer, mobile and other applications | |||||
P62 |
6 | April 2009 | Gumi, Korea | 101,617 | TFT-LCD for notebook computer and desktop monitor | |||||
AP3 (3) |
6 | February 2014 | Gumi, Korea | 288,634 | Plastic OLED for mobile and other applications | |||||
P7 |
7 | January 2006 | Paju, Korea | 310,134 | TFT-LCD for television | |||||
P8 (4) |
8 | March 2009 | Paju, Korea | 506,895 | TFT-LCD for television, desktop monitor and notebook computer | |||||
OP1 (5) |
8 | January 2013 | Paju, Korea | See P8 above |
OLED for television | |||||
P9 (6) |
8 | June 2012 | Paju, Korea | 500,408 | TFT-LCD for desktop monitor, notebook computer, tablet computer | |||||
AP4 (7) |
6 | July 2019 | Paju, Korea | See P9 above |
Plastic OLED for mobile and other applications | |||||
Overseas |
||||||||||
CA (8) |
8 | September 2014 | Guangzhou, China | 244,592 | TFT-LCD for television and desktop monitor | |||||
CO |
8 | July 2020 | Guangzhou, China | 426,139 | OLED for television |
(1) | Based on internal reference to evolutions in facility design, material flows and input substrate sizes. There are several definitions of “generations” in the display industry. There has been no consensus in the display industry on a uniform definition. References to generations made in this annual report are based on our current definition of generations as indicated in the table below. |
Substrate Sizes (in millimeters) |
Gen 5 |
Gen 6 |
Gen 7 |
Gen 8 | ||||
1,000 x 1,200 1,100 x 1,250 1,100 x 1,300 1,200 x 1,300 |
1,500 x 1,800 1,500 x 1,850 |
1,870 x 2,200 1,950 x 2,250 |
2,200 x 2,500 |
(2) | Gross floor area of P5 fabrication facility includes gross floor area of OLED light production lines. |
(3) | Includes the production line formerly referred to as E5, which began mass production in August 2017. |
(4) | Gross floor area of P8 fabrication facility includes the gross floor area of OP1 fabrication facility, which is located in the same complex. |
(5) | Includes the production lines formerly referred to as E3 and E4. The gross floor area of this fabrication facility is included within the P8 fabrication facility. |
(6) | Gross floor area of P9 fabrication facility includes the gross floor area of AP4 fabrication facility, which is located in the same complex. |
(7) | Includes the production line formerly referred to as E6. The gross floor area of this fabrication facility is included within the P9 fabrication facility. |
(8) | Gross floor area of CA fabrication facility includes the gross floor area of GP1, GP2 and extended facilities. |
Facility |
Gross Floor Area (in square meters) |
Mass Production Commencement | ||||
R&D Center |
69,871 | Not applicable (opened in April 2012) | ||||
Gumi assembly facility |
301,779 | January 1995 | ||||
Nanjing assembly facility |
159,448 | May 2003 | ||||
Paju assembly facility |
225,093 | January 2006 | ||||
Guangzhou assembly facility |
158,817 | December 2007 | ||||
Yantai assembly facility |
45,170 | May 2010 | ||||
Haiphong assembly facility |
358,787 | July 2017 |
Item 4A. |
UNRESOLVED STAFF COMMENTS |
Item 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Item 5.A. |
Operating Results |
Facility |
Primary Input Substrates Size (in millimeters) |
Year-end Input Capacity (1) |
||||||||||||||
2019 |
2020 |
2021 |
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(in thousands of input substrates per month) |
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AP3 |
1,500 x 1,850 | 7 | 24 | 17 | ||||||||||||
AP4 |
1,500 x 1,850 | 11 | 31 | 31 | ||||||||||||
OP1 |
2,200 x 2,500 | 81 | 86 | 86 | ||||||||||||
P5 |
1,100 x 1,250 | 72 | 44 | 45 | ||||||||||||
P62 |
1,500 x 1,850 | 46 | 46 | 44 | ||||||||||||
P7 |
1,950 x 2,250 | 223 | 142 | 150 | ||||||||||||
P8 |
2,200 x 2,500 | 217 | 100 | 124 | ||||||||||||
P9 |
2,200 x 2,500 | 83 | 82 | 81 | ||||||||||||
CA |
2,200 x 2,500 | 216 | 216 | 211 | ||||||||||||
CO (2) |
2,200 x 2,500 | N/A | 56 | 89 |
(1) | Year-end input capacity is the total input substrates for the month that had the highest monthly input substrates during the fiscal year. |
(2) | Commenced operation in July 2020. |
Year ended December 31, |
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2019 (1) |
2020 (1) |
2021 (1) |
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Sales |
% |
Sales |
% |
Sales |
Sales (2) |
% |
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Panels for: |
(in billions of Won and millions of US$, except for percentages) |
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Televisions |
W |
7,998 | 34.1 | % | W |
6,738 | 27.8 | % | W |
9,466 | US$ | 7,964 | 31.7 | % | ||||||||||||||
IT Products (3) |
9,063 | 38.6 | 10,121 | 41.7 | 12,459 | 10,482 | 41.7 | |||||||||||||||||||||
Mobile and other applications (4) |
6,374 | 27.1 | 7,359 | 30.3 | 7,900 | 6,647 | 26.4 | |||||||||||||||||||||
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Sales of goods |
W |
23,435 | 99.8 | % | W |
24,218 | 99.8 | % | W |
29,825 | US$ | 25,093 | 99.8 | % | ||||||||||||||
Royalties and others |
41 | 0.2 | 44 | 0.2 | 53 | 45 | 0.2 | |||||||||||||||||||||
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Revenue |
W |
23,476 | 100.0 | % | W |
24,262 | 100.0 | % | W |
29,878 | US$ | 25,137 | 100.0 | % | ||||||||||||||
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(1) | Pursuant to our early adoption of certain amendments to “IAS No. 16 Property, Plant and Equipment: Proceeds before Intended Use |
(2) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
(3) | Comprises notebook computers, desktop monitors and tablet computers. |
(4) | Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. |
Year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Panels for |
Number of Panels |
% |
Number of Panels |
% |
Number of Panels |
% |
||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||
Televisions |
44,833 | 19.4 | % | 27,747 | 12.2 | % | 30,214 | 12.0 | % | |||||||||||||||
IT Products (1) |
86,957 | 37.6 | 97,728 | 42.8 | 107,943 | 43.0 | ||||||||||||||||||
Mobile and other applications (2) |
99,569 | 43.0 | 102,884 | 45.1 | 112,758 | 45.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
231,359 | 100.0 | % | 228,359 | 100.0 | % | 250,915 | 100.0 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Comprises notebook computers, desktop monitors and tablet computers. |
(2) | Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. |
Average Selling Price (1) |
||||||||||||||||
Year ended December 31, |
||||||||||||||||
2019 (2) |
2020 (2) |
2021 (2)(3) |
||||||||||||||
Televisions |
W |
178,395 | W |
242,837 | W |
313,308 | US$ | 264 | ||||||||
IT Products (4) |
104,224 | 103,563 | 115,419 | 97 | ||||||||||||
Mobile and other applications (5) |
64,016 | 71,537 | 70,086 | 59 | ||||||||||||
All panels |
101,293 | 106,048 | 118,865 | 100 |
(1) | Average selling price for each market represents revenue per market divided by unit sales per market. |
(2) | Pursuant to our early adoption of certain amendments to “IAS No. 16 Property, Plant and Equipment: Proceeds before Intended Use |
(3) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
(4) | Comprises notebook computers, desktop monitors and tablet computers. |
(5) | Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems, automotive displays, portable navigation devices and medical diagnostic equipment. |
Year ended December 31, |
||||||||||||||||||||||||||||
2019 |
% |
2020 |
% |
2021 |
2021 (1) |
% |
||||||||||||||||||||||
(in billions of Won and in millions of US$, except for percentages) |
||||||||||||||||||||||||||||
Revenue |
W |
23,476 | 100.0 | % | W |
24,262 | 100.0 | % | W |
29,878 | US$ | 25,137 | 100.0 | % | ||||||||||||||
Cost of sales |
(21,607 | ) | 92.0 | (21,626 | ) | 89.1 | (24,573 | ) | (20,674 | ) | 82.2 | |||||||||||||||||
Gross profit |
1,868 | 8.0 | 2,636 | 10.9 | 5,305 | 4,463 | 17.8 | |||||||||||||||||||||
Selling expenses |
(1,058 | ) | 4.5 | (818 | ) | 3.4 | (933 | ) | (785 | ) | 3.1 | |||||||||||||||||
Administrative expenses |
(948 | ) | 4.0 | (755 | ) | 3.1 | (919 | ) | (773 | ) | 3.1 | |||||||||||||||||
Research and development expenses |
(1,222 | ) | 5.2 | (1,099 | ) | 4.5 | (1,222 | ) | (1,028 | ) | 4.1 | |||||||||||||||||
Other income |
1,267 | 5.4 | 1,785 | 7.4 | 1,252 | 1,053 | 4.2 | |||||||||||||||||||||
Other expenses |
(3,098 | ) | 13.2 | (1,999 | ) | 8.2 | (1,281 | ) | (1,078 | ) | 4.3 | |||||||||||||||||
Finance income |
277 | 1.2 | 439 | 1.8 | 426 | 358 | 1.4 | |||||||||||||||||||||
Finance costs |
(443 | ) | 1.9 | (803 | ) | 3.3 | (917 | ) | (771 | ) | 3.1 | |||||||||||||||||
Equity income on investments, net |
12 | 0.1 | 12 | 0.1 | 8 | 7 | 0.0 | |||||||||||||||||||||
Profit (loss) before income tax |
(3,344 | ) | (14.2 | ) | (602 | ) | (2.5 | ) | 1,719 | 1,446 | 5.8 | |||||||||||||||||
Income tax benefit (expense) |
472 | 2.0 | 526 | 2.2 | (385 | ) | (324 | ) | (1.3 | ) | ||||||||||||||||||
Profit (loss) for the year |
(2,872 | ) | (12.2 | ) | (76 | ) | (0.3 | ) | 1,334 | 1,122 | 4.5 |
(1) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
• | shipping costs, resulting mainly from an increase in costs relating to our increased usage of air freight and an increase in ocean freight rates primarily caused by the COVID-19 pandemic as well as a general increase in our overall sales volume in 2021 compared to 2020; |
• | salaries, resulting primarily from an increase in general wage levels and the number of our employees. |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
(in billions of Won) |
||||||||
Salaries |
W |
294 | W |
387 | ||||
Expenses related to defined benefit plan |
26 | 23 | ||||||
Other employee benefits |
68 | 87 | ||||||
Shipping costs |
148 | 299 | ||||||
Fees and commissions |
222 | 248 | ||||||
Depreciation |
215 | 267 | ||||||
Taxes and dues |
83 | 75 | ||||||
Advertising |
114 | 126 | ||||||
Warranty expenses |
309 | 217 | ||||||
Insurance |
13 | 17 | ||||||
Travel |
8 | 7 | ||||||
Training |
8 | 16 | ||||||
Others |
65 | 83 | ||||||
|
|
|
|
|||||
Total |
W |
1,573 | W |
1,852 | ||||
|
|
|
|
• | net foreign currency loss of W 300 billion (US$252 million) in 2021 compared to net foreign currency gain of W 142 billion in 2020, primarily due to higher exchange rate volatility in 2021 compared to 2020; and |
• | a 17.3% increase in interest expense from W 370 billion in 2020 to W 434 billion (US$365 million) in 2021, which was mainly due to a decrease in capitalized interest in 2021 compared to 2020. |
• | Salaries, as temporary increases in salaries in 2019 due to the retirement allowance incurred in connection with the implementation of voluntary retirement programs for our employees during 2019 was not repeated in 2020; |
• | warranty expenses, resulting mainly from an improvement in the stability of our manufacturing processes for OLED display panels; and |
• | advertising expenses, resulting primarily from decrease in the level of our higher-cost offline marketing activities and a corresponding increase in the level of our online marketing activities in 2020 compared to 2019. |
Year ended December 31, |
||||||||
2019 |
2020 |
|||||||
(in billions of Won) |
||||||||
Salaries |
W |
515 | W |
294 | ||||
Expenses related to defined benefit plan |
29 | 26 | ||||||
Other employee benefits |
78 | 68 | ||||||
Shipping costs |
163 | 148 | ||||||
Fees and commissions |
220 | 222 | ||||||
Depreciation |
226 | 215 | ||||||
Taxes and dues |
50 | 83 | ||||||
Advertising |
193 | 114 | ||||||
Warranty expenses |
419 | 309 | ||||||
Rent |
3 | 2 | ||||||
Insurance |
11 | 13 | ||||||
Travel |
24 | 8 | ||||||
Training |
12 | 8 | ||||||
Others |
64 | 62 | ||||||
|
|
|
|
|||||
Total |
W |
2,006 | W |
1,573 | ||||
|
|
|
|
• | a 113.9% increase in interest expense from W 173 billion in 2019 to W 370 billion in 2020, which was mainly due to an increase in the average amount of our long-term borrowings outstanding as well as a decrease in capitalized interest in 2020 compared to 2019; and |
• | net loss on valuation of derivatives of W 187 billion in 2020 compared to net gain on valuation of derivatives of W 42 billion in 2019, as the U.S. dollar generally depreciated against the Korean Won during the second half of 2020 and significantly fluctuated over these periods as a whole. Against such fluctuations, we also recognized net foreign currency gain of W 142 billion in 2020 compared to net foreign currency loss of W 19 billion in 2019, as well as net gains on transaction of derivatives of W 22 billion in 2019 and W 24 billion in 2020. |
2019 |
2020 |
2021 |
2021 (1) |
|||||||||||||
(in billions of Won) |
(in millions of US$) |
|||||||||||||||
Profit (loss) for the year |
W |
(2,872 | ) | W |
(76 | ) | W |
1,334 | US$ | 1,122 | ||||||
Interest income |
(53 | ) | (70 | ) | (89 | ) | (75 | ) | ||||||||
Interest expense |
173 | 370 | 434 | 365 | ||||||||||||
Income tax expense (benefit) |
(472 | ) | (526 | ) | 385 | 324 | ||||||||||
Depreciation and amortization |
3,695 | 4,134 | 4,501 | 3,787 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
W |
471 | W |
3,832 | W |
6,565 | US$ | 5,523 | ||||||||
|
|
|
|
|
|
|
|
(1) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
Item 5.B. |
Liquidity and Capital Resources |
(in billions of Won) |
||||
Korean Won |
W |
129 | ||
Chinese Yuan |
2,053 | |||
U.S. Dollar |
1,351 | |||
Other currencies |
9 | |||
|
|
|||
Total |
W |
3,542 | ||
|
|
As of December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 (1) |
|||||||||||||
(in billions of Won and millions of US$) |
||||||||||||||||
Finished goods |
W |
730 | W |
785 | W |
1,180 | US$ | 993 | ||||||||
Work in process |
757 | 733 | 1,202 | 1,011 | ||||||||||||
Raw materials |
406 | 492 | 787 | 662 | ||||||||||||
Supplies |
159 | 161 | 181 | 152 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
W |
2,051 | W |
2,171 | W |
3,350 | US$ | 2,818 | ||||||||
|
|
|
|
|
|
|
|
(1) | For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021, as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. |
Payments Due by Period |
||||||||||||||||||||
(in billions of Won) |
Total |
Less than 1 year |
1-3 years |
3-5 years |
More than 5 years |
|||||||||||||||
Unsecured bank borrowings |
7,634 | 2,194 | 4,797 | 643 | — | |||||||||||||||
Secured bank borrowings |
3,060 | 471 | 1,419 | 1,170 | — | |||||||||||||||
Unsecured bond issues |
2,532 | 1,461 | 715 | 267 | 89 | |||||||||||||||
Trade accounts and notes payable |
4,814 | 4,814 | — | — | — | |||||||||||||||
Other accounts payable |
2,330 | 2,330 | — | — | — | |||||||||||||||
Other accounts payable (enterprise procurement cards) (1) |
1,074 | 1,074 | — | — | — | |||||||||||||||
Long-term other accounts payable |
586 | — | 226 | 161 | 199 | |||||||||||||||
Securities deposits received |
11 | 8 | 3 | — | — | |||||||||||||||
Lease Liabilities |
91 | 44 | 32 | 7 | 8 | |||||||||||||||
Derivatives |
8 | 7 | 1 | — | — | |||||||||||||||
Derivatives for cash flow hedge |
13 | 13 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total contractual cash obligations |
22,153 | 12,416 | 7,193 | 2,248 | 296 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Represents the amount of utility expenses and other expenses paid using the enterprise procurement cards. For further information, please see Note 25 of the notes to our financial statements. |
Item 5.C. |
Research and Development, Patents and Licenses, etc. |
• | In 2019, we commenced mass production of display panels for 88-inch 8K OLED TV products. We also produced 55-inch FHD transparent commercial OLED display panels and 55-inch UHD OLED gaming monitor display panels. In addition, we developed OLED panels for automotive products with a 7.2-inch control pad, 14.2-inch cluster and 16.9-inch infotainment screen. For TFT-LCD commercial products, we produced a 50-inch Ultra HD in-TOUCH panel (equipped with touch sensors inside the LCD cells for a thinner and lighter design), which is the first in-TOUCH panel that is 50-inches or larger. |
• | In 2020, we commenced mass production of the first OLED products at our new CO fabrication facility in Guangzhou, China, including 48-inch and 77-inch UHD display panels. In addition, we developed the world’s first “2K” zone mini-LED and ultra-slim UHD desktop monitor product. |
• | In 2021, we produced 65-inch UHD bendable OLED television display products and 83-inch UHD OLED television display products. In addition, we developed the world’s first 42-inch OLED television display product. For TFT-LCD commercial products, we developed the world’s first 15.6-inch QHD 240Hz gaming notebook products, the world’s first 27-inch and 31.5-inch UHD high contrast ratio monitor products and our first LCD 750R extreme curvature automotive display product. |
• | We have a license agreement with each of Columbia University, Penn State University, Honeywell International, Honeywell Intellectual Properties, Plasma Physics Corporation and Fergason Patent Properties. Each license agreement provides for a non-exclusive license under certain patents relating to TFT-LCD technologies. |
• | We have a cross-license agreement with each of Hitachi, HannStar and Hydis for a non-exclusive license under certain patents relating to display technologies. |
• | We have separate cross-license agreements with each of NEC and AU Optronics in connection with the settlement of certain patent infringement lawsuits. Under the agreements, each party grants the other party a license under certain patents relating to TFT-LCD technologies. |
• | We are licensed to use certain patents for our TFT-LCD products pursuant to a cross-license agreement between Philips Electronics and Toshiba Corporation. |
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 |
Date of Birth |
Position |
First Elected/ Appointed |
Term Expires |
Principal Occupation Outside of LG Display | |||||
Byoung Ho Lee | July 6, 1964 | Director | March 2018 | March 2024 | Professor, Electrical and Computer Engineering, Seoul National University | |||||
Doocheol Moon | November 5, 1967 | Director | March 2021 | March 2024 | Professor, School of Business, Yonsei University | |||||
Chung Hae Kang | May 20, 1964 | Director | March 2022 | March 2025 | Professor, University of Seoul Law School | |||||
Jungsuk Oh (1) |
September 30, 1970 | Director | April 2022 | March 2023 | Professor, Operations Management, Seoul National University |
(1) | Pursuant to the rules of the Korean Commercial Code, Mr. Jungsuk Oh has been appointed as our temporary outside director by the Seoul Southern District Court to replace Mr. Chang-Yang Lee, our former outside director, who resigned from his position on April 8, 2022. |
Name |
Date of Birth |
Position |
First Elected/ Appointed |
Term Expires |
Principal Occupation Outside of LG Display | |||||
Hoyoung Jeong | November 2, 1961 | President, Chief Executive Officer, Representative Director | March 2020 | March 2023 | — | |||||
Sunghyun Kim | December 12, 1967 | Senior Vice President, Chief Financial Officer, Director | March 2022 | March 2025 | — | |||||
Beom Jong Ha | July 16, 1968 | Director | March 2022 | March 2025 | — |
Name |
Position |
Responsibility and Division |
Age |
|||||
Myoung Kyu Kim | President | Head of Medium-Small Display Business Unit | 59 | |||||
Yong Min Ha | Executive Vice President | Head of Precedence Technology Laboratory | 55 | |||||
Chang Ho Oh | Executive Vice President | Head of Large Display Business Unit | 56 | |||||
Jong Woo Kim | Executive Vice President | Chief Production Officer | 56 | |||||
Soo Young Yoon | Executive Vice President | Chief Technology Officer | 55 | |||||
Yoong Ki Min | Executive Vice President | Head of Medium Display Business Group | 56 | |||||
Byeong Koo Kim | Senior Vice President | Head of Auto Business Group | 54 | |||||
Kang Yeol Oh | Senior Vice President | Head of Small Display Sales/Marketing Group | 57 | |||||
Tae Seung Kim | Senior Vice President | Leader of P10 Infra Set-up Task Force |
57 | |||||
Won Ho Cho | Senior Vice President | Head of Small Display Manufacture Center | 58 | |||||
Hyun Chul Choi | Senior Vice President | Head of Small Display Business Group | 54 | |||||
Young Sang Byun | Senior Vice President | Head of Medium Display Manufacture Center | 56 | |||||
Jin Hyo Lee | Senior Vice President | Head of Legal Group | 49 | |||||
J. Kenneth Oh | Senior Vice President | Head of Intellectual Property Division | 54 | |||||
Han Seop Kim | Senior Vice President | Head of Large Display Development Group | 56 | |||||
Sang Ho Song | Senior Vice President | Chief of Human Resource Officer | 53 | |||||
Jeong Ki Park | Senior Vice President | Head of Medium Display Development Group | 53 | |||||
Young Seok Choi | Senior Vice President | Head of Production Technology Center | 53 | |||||
Hyeon Woo Lee | Senior Vice President | Head of Life Display Business Group | 54 | |||||
Hee Yeon Kim | Senior Vice President | Head of Corporate Strategy Group | 52 | |||||
Jin Kyu Lee | Senior Vice President | Head of DX Group | 52 | |||||
Woo Sup Shin | Senior Vice President | Head of Large Display Manufacture Center | 52 | |||||
Seong Hee Kim | Senior Vice President | Chief Safety Environment Officer | 53 | |||||
Yoo Seok Park | Senior Vice President | Head of Quality Management Center | 51 | |||||
Jeom Jae Kim | Vice President | Head of Foundation Technology Laboratory | 53 | |||||
Seung Min Lim | Vice President | Head of Corporate Planning & Management Group | 54 | |||||
Je Bong Kim | Vice President | Head of Medium-Small Display Planning & Management Division | 56 | |||||
Jae Hong Park | Vice President | Head of Small Display Product Development Group | 52 | |||||
Kwang Jin Kim | Vice President | Head of Large Display Sales & Marketing Group | 52 | |||||
Soon Kwang Hong | Vice President | Head of Small Display Product Development Division 2 | 51 | |||||
Chang Han Kim | Vice President | Head of Gaming Display Business Division | 52 | |||||
Keuk Sang Kwon | Vice President | Head of Auto Product Development Division 1 | 51 | |||||
Kwon Shik Park | Vice President | Head of Device Process Research Division | 52 | |||||
Dong Eun Lee | Vice President | Head of China Business Management Division | 54 | |||||
Chang Sub Choi | Vice President | Head of Japan Office | 55 | |||||
Dong Hoon Lee | Vice President | Head of Auditing & Management Consulting Division | 50 | |||||
Jin Nam Park | Vice President | Head of Purchasing Group | 50 | |||||
Doo Jong Jin | Vice President | Leader of Module Strategy Task Force | 54 | |||||
Bu Yeol Lee | Vice President | Head of R&D Strategy Division | 50 | |||||
Chang Mog Jo | Vice President | Head of Equipment Technology Division | 56 |
Jin Gu Jeung | Vice President | Head of GuangZhou Complex Group | 52 | |||||
Chae Woo Choi | Vice President | Head of Commercial Business Division | 52 | |||||
Sang Yoon Park | Vice President | Head of Medium Display Product Development Division 2 | 52 | |||||
Hong Sung Song | Vice President | Head of Large Display Product Development Division 1 | 53 | |||||
Eun Kuk Kyung | Vice President | Head of Accounting Division | 52 | |||||
Young Dall Park | Vice President | Head of Vietnam HR & Business Suppoprt Division | 51 | |||||
Yong In Park | Vice President | Head of POLED Panel Research Division | 52 | |||||
Seung Jun Han | Vice President | Head of Convergence Technology Research Division | 52 | |||||
Hoon Jeong | Vice President | Head of Medium Display Panel Development Division | 49 | |||||
Myung Su Suk | Vice President | Head of Vietnam Complex Group | 51 | |||||
Jong Seo Yoon | Vice President | Head of Medium Display Product Planning Division | 50 | |||||
Han Wook Hwang | Vice President | Head of Small Display Panel Development Group | 46 | |||||
Seung Ho Kwon | Vice President | Head of Large Display Cell Division | 50 | |||||
Tae Rim Lee | Vice President | Leader of Large Display Performance Improvement Task Force | 46 | |||||
In Hyuk Song | Vice President | Head of Medium OLED Panel Development Division | 44 | |||||
Tae Shick Kim | Chief Research Fellow | Leader of Large Display Device Development Task Force | 53 | |||||
Seong Hoon Chun | Vice President | Leader of Plate Task Force | 51 | |||||
Sung Chun Kang | Vice President | Head of Medium Display Factory 2 | 52 | |||||
Joon Young Yang | Vice President | Head of OLED Panel Research Division | 51 | |||||
Tae Hyung Lim | Vice President | Head of Medium Display Sales Division 1 | 52 | |||||
Kyung Joon Kwon | Vice President | Head of Small Display Driving Technology Division | 46 | |||||
Jae Young Kwon | Vice President | Head of Medium-Small Display Sales/Marketing Group | 52 | |||||
Sung Joon Bae | Vice President | Head of Large Display Panel Development Division | 50 | |||||
Hae Won Lee | Vice President | Head of Production Technology Division | 51 | |||||
Won Gyun Youn | Vice President | Head of Medium Display Product Development Division 3 | 50 | |||||
Ki Young Kim | Vice President | Head of Medium-Small Display Quality Division | 50 | |||||
Ji Ho Baek | Vice President | Head of OC Research/Development Division | 50 | |||||
Seung Do Kim | Vice President | Head of Nanjing Factory | 50 | |||||
Heung Soo Kim | Vice President | Head of Small Display Factory 2 | 51 | |||||
In Kwan Choi | Vice President | Head of Small Display Module Technology Division | 50 | |||||
Jong Suk Jeon | Vice President | Head of Large Display Sales Division 3 | 47 | |||||
Sang Hyun Ahn | Vice President | Head of Auto Sales Division | 51 | |||||
Won Seok Kang | Vice President | Leader of Life Display Product Planning Task Force | 50 | |||||
Whan Woo Park | Vice President | Head of Small Display Sales Division 2 | 49 | |||||
Byung Seung Lee | Vice President | Head of SCM DX Division | 45 | |||||
Hoon Choi | Vice President | Head of Product Technology Division | 50 | |||||
Han Koo Lee | Vice President | Head of Business Support Group | 54 | |||||
Han Yong Nam | Vice President | Head of Purchasing Division 2 | 53 | |||||
Hu Kag Lee | Vice President | Head of LGDCO Subsidiary | 51 |
Jong Uk Bae | Vice President | Head of Large Display Process Development Division | 51 | |||||
Jong Duck Kim | Vice President | Head of Large Display Planning & Management Division | 51 | |||||
Chun Ho Yeo | Vice President | Head of Business Development Division | 52 | |||||
Hyung Jung Lee | Vice President | Head of Large Display SCM Division | 52 | |||||
Pan Youl Kim | Vice President | Head of Small Display Product Development Division 3 | 50 | |||||
In Keun Jeong | Vice President | Head of Advanced Quality Division | 50 | |||||
Jae Jun Ahn | Vice President | Head of Small Display Process Integration Division | 48 | |||||
Ki Hwan Son | Vice President | Head of Auto Marketing Product Planning Division | 43 | |||||
Gwang Tae Kim | Vice President | Head of Medium Display Precedence Development Division | 49 | |||||
Joon Hyeok Jang | Vice President | Head of Large Display Sales Division 2 | 48 | |||||
Ui Jin Chung | Vice President | Leader of EXO Task Force | 50 | |||||
Jae Hyeob Seo | Vice President | Head of Gumi Complex Group | 51 | |||||
Tae Wook Kang | Vice President | Head of Customer Insight Division | 45 | |||||
Juhn Suk Yoo | Chief Research Fellow | Leader of Small Display Advanced Technology Development Task Force | 50 | |||||
Woo Nam Jeong | Chief Research Fellow | Leader of MTB Task Force | 55 | |||||
Seong Gon Kim | Vice President | Head of Medium Display Sales Division 3 | 44 | |||||
Sang Hoon Jung | Vice President | Leader of Next Generation Display Research Task Force | 45 | |||||
Jong Seob Choi | Vice President | Head of Global HR Division | 44 | |||||
Jun Hyuk Choi | Vice President | Head of Public Relations Division | 48 | |||||
Kyu Dong Kim | Vice President | Head of Finance & Risk Management Division | 44 | |||||
Seong Pil Shin | Vice President | Head of Public Affairs Division | 48 |
Item 6.B. |
Compensation |
Name |
Position |
Composition of Total Compensation |
Total Compensation |
|||||||||||||||
Salary |
Bonus (1) |
Retirement Benefits |
||||||||||||||||
(in millions of Won) |
||||||||||||||||||
In Byeong Kang (2) |
Advisory Officer | W |
325 | — | W |
1,458 | W |
1,783 | ||||||||||
Yeong Giu Hong (2) |
Advisory Officer | W |
225 | — | W |
1,146 | W |
1,371 | ||||||||||
Hoyoung Jeong |
Chief Executive Officer | W |
1,340 | — | — | W |
1,340 | |||||||||||
Yung Keun Choi (2) |
Advisory Officer | W |
282 | — | W |
954 | W |
1,236 | ||||||||||
Jung Sik Shin (2) |
Advisory Officer | W |
278 | — | W |
895 | W |
1,173 |
(1) | Based on our performance in 2020. |
(2) | Former officer who retired from his position as of March 31, 2021. |
Item 6.C. |
Board Practices |
• | Audit Committee; |
• | Outside Director Nomination Committee; |
• | Management Committee; |
• | Related Party Transaction Committee; and |
• | ESG Committee; |
• | engaging or dismissing independent auditors; |
• | approving independent audit fees; |
• | approving audit and non-audit services; |
• | reviewing annual and interim financial statements; |
• | reviewing audit results and reports, including management comments and recommendations; |
• | reviewing our system of controls and policies, including those covering conflicts of interest and business ethics; |
• | assessing compliance with disclosure and filing obligations; |
• | considering significant changes in accounting practices; and |
• | examining improprieties or suspected improprieties. |
Item 6.D. |
Employees |
As of December 31, |
||||||||||||
Employees (1) |
2019 |
2020 |
2021 |
|||||||||
Production | 49,575 | 53,336 | 59,976 | |||||||||
Technical(2) | 8,198 | 7,541 | 8,018 | |||||||||
Sales & Marketing | 1,615 | 1,432 | 1,526 | |||||||||
Management & Administration | 1,041 | 1,051 | 1,187 | |||||||||
|
|
|
|
|
|
|||||||
Total |
60,429 | 63,360 | 70,707 | |||||||||
|
|
|
|
|
|
(1) | Includes employees of our subsidiaries. |
(2) | Includes research and development and engineering personnel. |
Item 6.E. |
Share Ownership |
Item 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Item 7.A. |
Major Shareholders |
Beneficial Owner |
Number of Shares of Common Stock |
Percentage |
||||||
LG Electronics |
135,625,000 | 37.9 | % | |||||
National Pension Service |
23,811,048 | 6.7 | % |
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 |
Item 8.B. |
Significant Changes |
Item 9. |
THE OFFER AND LISTING |
Item 9.A. |
Offer 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 |
• | publicly offered pursuant to the Financial Investment Services and Capital Markets Act; |
• | issued to members of our employee stock ownership association; |
• | represented by depositary receipts; |
• | issued upon exercise of stock options granted to our officers and employees; |
• | issued to corporations, institutional investors or domestic or overseas financial institutions to achieve our operational objectives; or |
• | issued for the purpose of drawing foreign investment when we deem it necessary for our business needs; |
• | as necessary; |
• | at the request of holders of an aggregate of 3% or more of our outstanding shares; |
• | at the request of shareholders holding an aggregate of 1.5% or more of our outstanding shares for at least six consecutive 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; |
• | effecting our acquisition of a part of the business of any other company that has a material effect on our business; 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 Ministry of Economy and Finance 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) or impose an obligation to deposit, safe-keep or sell any means of payment to The Bank of Korea or certain other governmental agencies, foreign exchange equalization funds or financial institutions; 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 is likely to adversely affect the Korean Won, exchange rates or other macroeconomic policies, the Ministry of Economy and Finance may take action to require any person who intends to effect a capital transaction to obtain permission or to require any person who effects a capital transaction to deposit a portion of the means of payment acquired in such transactions with The Bank of Korea, foreign exchange equalization funds or financial institutions. |
(1) | the aggregate number of shares of our common stock deposited by us for the issuance of our ADSs (including deposits in connection with the initial issuance and all subsequent offerings of our ADSs and stock dividends or other distributions related to these ADSs); and |
(2) | the number of shares of our common stock on deposit with the depositary at the time of such proposed deposit. |
• | odd-lot trading of shares; |
• | acquisition of shares, which we refer to as converted shares, by exercise of warrants, conversion rights or exchange rights under bonds with warrants, convertible bonds or exchangeable bonds or withdrawal rights under depositary receipts issued outside of Korea by a Korean company; |
• | 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; |
• | subject to certain exceptions, over-the-counter |
• | shares acquired by way of direct investment and/or the disposal of such shares by the investor; |
• | the disposal of shares pursuant to the exercise of appraisal rights of dissenting shareholders; |
• | the disposal of shares in connection with a tender offer; |
• | the acquisition of shares by a foreign depositary in connection with the issuance of depositary receipts; |
• | the acquisition and disposal of shares through an overseas stock exchange market if such shares are simultaneously listed on the KRX KOSPI Market or the KRX KOSDAQ Market and such overseas stock exchange; and |
• | arm’s-length transactions between foreigners, if all of such foreigners belong to the investment group managed by the same person. |
Item 10.E . |
Taxation |
• | a resident of Korea; |
• | a corporation having its head office, principal place of business or place of effective management in Korea (i.e., a Korean corporation); or |
• | engaged in a trade or business in Korea through a permanent establishment or a fixed base to which the relevant income is attributable or with which the relevant income is effectively connected. |
• | a dealer in securities or currencies; |
• | a trader in securities that elects to use a mark-to-market |
• | a bank or financial institution; |
• | a life insurance company; |
• | a tax-exempt organization; |
• | an entity treated as a partnership (and partners therein) or other pass-through entity for U.S. federal income tax purposes; |
• | a person that holds shares of common stock or ADSs that are a hedge or that are hedged against interest rate or currency risks; |
• | a person that holds shares of common stock 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; or |
• | a person that owns or is deemed to own 10% or more of our stock (by vote or by value). |
• | 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 share of common stock 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 |
Expected Maturity Dates |
Fair Value at December 31, 2021 |
|||||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total |
||||||||||||||||||||||||||
(in billions of Won, except for interest rate percentages) |
||||||||||||||||||||||||||||||||
Interest rate swaps |
||||||||||||||||||||||||||||||||
Variable to fixed ( W ) (1) |
W |
20.0 | W |
90.0 | W |
40.0 | W |
20.0 | — | — | W |
170.0 | W |
170.0 | ||||||||||||||||||
Average pay rate |
2.95 | % | 2.65 | % | 2.95 | % | 2.95 | % | — | — | ||||||||||||||||||||||
Average receive rate |
2.95 | % | 3.16 | % | 3.53 | % | 3.52 | % | — | — |
(1) | Average pay rates and average receive rates are applicable to the total notional amounts outstanding until maturity. |
Expected Maturity Dates |
Fair Value at December 31, 2021 |
|||||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total |
||||||||||||||||||||||||||
(in billions of Won, except for interest rate percentages) |
||||||||||||||||||||||||||||||||
Debt obligations |
||||||||||||||||||||||||||||||||
Fixed rate ( W ) |
W |
1,191.5 | W |
1,241.5 | W |
1,006.0 | W |
176.0 | W |
210.0 | W |
70.0 | W |
3,895.0 | W |
3,907.5 | ||||||||||||||||
Average interest rate |
2.7 | % | 3.0 | % | 2.4 | % | 3.1 | % | 2.8 | % | 4.2 | % | ||||||||||||||||||||
Variable rate ( W ) |
— | W |
250.0 | — | W |
120.0 | — | — | W |
370.0 | W |
370.0 | ||||||||||||||||||||
Average interest rate |
— | 2.3 | % | — | 2.6 | % | — | — | ||||||||||||||||||||||||
Fixed rate (CNY) |
W |
0.4 | W |
92.0 | — | — | — | — | W |
92.4 | W |
94.1 | ||||||||||||||||||||
Average interest rate |
4.2 | % | 4.2 | % | — | — | — | — | ||||||||||||||||||||||||
Variable rate (CNY) |
W |
437.0 | W |
1,088.7 | W |
620.2 | W |
620.2 | W |
497.3 | — | W |
3,263.4 | W |
3,263.4 | |||||||||||||||||
Average interest rate |
4.8 | % | 4.5 | % | 5.0 | % | 5.0 | % | 5.0 | % | — | |||||||||||||||||||||
Fixed rate (US$) |
— | — | W |
1,252.9 | — | — | — | W |
1,252.9 | W |
1,249.9 | |||||||||||||||||||||
Average interest rate |
— | — | 0.2 | % | — | — | — | |||||||||||||||||||||||||
Variable rate (US$) |
W |
1,342.8 | W |
847.6 | W |
1,103.2 | W |
440.0 | W |
59.3 | — | W |
3,792.9 | W |
3,792.9 | |||||||||||||||||
Average interest rate |
1.2 | % | 1.6 | % | 1.7 | % | 2.0 | % | 1.6 | % | — |
Outstanding contract amount |
US$ |
1,545 million | ||
Average contractual exchange rate |
(Won) |
1,150.4/US$ | ||
Change in fair value |
(Won) |
209.8 billion |
Outstanding contract amount |
US$ |
1,200 million | ||
Average contractual exchange rate |
(Won) |
1,177.8/US$ | ||
Change in fair value |
(Won) |
(12.5) billion |
Item 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Services |
Fees | |
Issuance of ADSs |
Up to US$0.05 per ADS issued | |
Cancellation of ADSs |
Up to US$0.05 per ADS canceled | |
Distribution of cash dividends or other cash distributions |
Up to US$0.02 per ADS held | |
Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions or (ii) exercise of rights to purchase additional ADSs |
Up to US$0.02 per ADS held | |
Distribution of securities other than ADSs or rights to purchase additional ADSs |
Up to US$0.05 per ADS held | |
Other ADS services |
Up to US$0.02 per ADS held |
• | Fees for the transfer and registration of shares charged by the registrar and transfer agent for the shares in Korea (i.e., upon deposit and withdrawal of shares). |
• | Expenses incurred for converting foreign currency into U.S. dollars. |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. |
• | Taxes and duties upon the transfer of securities (i.e., when shares are deposited or withdrawn from deposit). |
• | Fees and expenses incurred in connection with the delivery or servicing of shares on deposit. |
Reimbursement of proxy process expenses (printing, postage and distribution) (1) |
US$ — | |
Contributions towards our investor relations efforts (i.e. non-deal roadshows, investor conferences and IR agency fees) and legal expenses incurred in connection with the preparation of our Form 20-F for the fiscal year 2020 (1) |
US$ — |
(1) | Under discussions with the depositary for the amount of applicable payment with respect to 2021. |
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, |
||||||||
2020 |
2021 |
|||||||
(in millions of Won) |
||||||||
Audit fees |
W |
4,369 | W |
4,603 | ||||
Audit-related fees |
— | — | ||||||
Tax fees |
98 | 147 | ||||||
All other fees |
— | 341 | ||||||
Total fees |
W |
4,467 | W |
5,091 | ||||
Item 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
Item 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Item 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
Item 16G. |
CORPORATE GOVERNANCE |
NYSE Corporate Governance Standards |
LG Display’s Corporate Governance Practice | |
Director Independence |
||
Listed companies must have a majority of independent directors. | The majority of our board of directors is independent (as defined in accordance with the New York Stock Exchange’s standards), as four out of seven directors are outside directors. | |
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 have not established a separate nomination/corporate governance committee, we maintain an Outside Director Nomination Committee, which is composed of two outside directors and one non-outside director, and an ESG Committee, which is composed of four outside directors and one non-outside 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 U.S. Securities and Exchange Commission rules adopted pursuant to Section 952 of the Dodd-Frank Act, the New York Stock Exchange listing standards were amended to expand the factors relevant in determining whether a committee member has a relationship with the company that will materially affect that member’s duties to the compensation committee. | Under Korean law, we are not required to establish a compensation committee. Accordingly, we do not currently have a compensation committee, and our board of directors is directly responsible for matters relating to salaries and incentive compensation for our directors and executive officers. | |
Executive Session |
||
Non-management directors of listed companies must meet in regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. |
We do not normally hold executive sessions solely attended by non-management directors as that is not required under Korean law but we may elect to do so at the discretion of the directors. | |
Audit Committee |
||
Listed companies must have an audit committee that satisfies the 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 composed of four outside directors who meet the applicable independence criteria set forth under Rule 10A-3 of the Exchange Act. | |
Audit Committee Additional Requirements |
||
Listed companies must have an audit committee that is composed of at least three directors. | Our Audit Committee has four directors, as described above. |
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: one providing for the grant of stock options to officers and key employees and an Employee Stock Ownership Plan, or ESOP. | |
Stock options to officers and key employees may be granted pursuant to a resolution of the shareholders in an amount not to exceed 15% of the total number of our issued and outstanding shares. However, the board of directors may grant stock options to non-director officers and employees up to 1% of the total number of our issued and outstanding shares, which grant must be approved by a resolution of the subsequent general meeting of shareholders. | ||
All material matters related to the granting of stock options are provided in our articles of incorporation, and any amendments to the articles of incorporation are subject to shareholders’ approval. Matters related to the 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. | The Korean Commercial Code and our articles of incorporation provide that any and all terms and conditions for the issuance of new shares of the company shall be determined by a resolution of the board of directors. The company may allot new shares by a resolution of the board of directors to persons other than its shareholders when certain requirements are satisfied, including where new shares are issued by way of general public offering, and are issued to corporations, institutional investors, domestic and foreign financial institutions and others to further a management objective such as strengthening the company’s financials (provided, however, that such allotment of new shares to persons other than shareholders may only be made up to 20% of the total number of issued and outstanding shares of the company). | |
Corporate Governance Guidelines |
||
Listed companies must adopt and disclose corporate governance guidelines. | We do not maintain formal corporate governance guidelines. Our board of directors is responsible for overseeing our policies, practices and procedures in the area of corporate governance. | |
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 Ethics for all directors, officers and employees. A copy of our Code of Ethics is available on our website at www.lgdisplay.com |
Item 17. |
FINANCIAL STATEMENTS |
Item 18. |
FINANCIAL STATEMENTS |
Page |
||||
F-2 |
||||
F-5 | ||||
F-7 | ||||
F-9 | ||||
F-11 | ||||
F-15 |
Item 19. |
EXHIBITS |
* | Filed previously. |
LG DISPLAY CO., LTD. (Registrant) | ||
/s/ H OYOUNG JEONG | ||
(Signature) | ||
Name: | Hoyoung Jeong | |
Title: | Representative Director, President and Chief Executive Officer | |
/s/ S UNGHYUN KIM | ||
(Signature) | ||
Name: | Sunghyun Kim | |
Title: | Senior Vice President and Chief Financial Officer |
Page |
||||
F-2 | ||||
F-5 | ||||
F-7 | ||||
F-9 | ||||
F-11 | ||||
F-15 |
- | testing discount rate by comparing it against independently developed rate using publicly available market data for comparable entities; and |
- | testing revenue and operating expenditures forecasts by comparing them against analyst reports and industry reports. |
(In millions of won) |
Note |
December 31, 2020 |
December 31, 2021 |
|||||||
Assets |
||||||||||
Cash and cash equivalents |
4, 25 | W |
||||||||
Deposits in banks |
4, 25 | |||||||||
Trade accounts and notes receivable, net |
5, 14, 25, 28 | |||||||||
Other accounts receivable, net |
5, 25 | |||||||||
Other current financial assets |
6, 25, 26 | |||||||||
Inventories |
7 | |||||||||
Prepaid income taxes |
23 | |||||||||
Other current assets |
5 | |||||||||
|
|
|
|
|||||||
Total current assets |
||||||||||
Deposits in banks |
4, 25 | |||||||||
Investments in equity accounted investees |
8 | |||||||||
Other non-current accounts receivable, net |
5, 25 | — | ||||||||
Other non-current financial assets |
6, 25, 26 | |||||||||
Property, plant and equipment, net |
9, 16, 26 | |||||||||
Intangible assets, net |
10, 16 | |||||||||
Deferred tax assets |
23 | |||||||||
Defined benefit assets, net |
12 | |||||||||
Other non-current assets |
||||||||||
|
|
|
|
|||||||
Total non-current assets |
||||||||||
|
|
|
|
|||||||
Total assets |
W |
|||||||||
|
|
|
|
(In millions of won) |
Note |
December 31, 2020 |
December 31, 2021 |
|||||||
Liabilities |
||||||||||
Trade accounts and notes payable |
25, 28 | W |
||||||||
Current financial liabilities |
11, 25, 26 | |||||||||
Other accounts payable |
25 | |||||||||
Accrued expenses |
||||||||||
Income tax payable |
||||||||||
Provisions |
13 | |||||||||
Advances received |
||||||||||
Other current liabilities |
||||||||||
|
|
|
|
|||||||
Total current liabilities |
||||||||||
Non-current financial liabilities |
11, 25, 26 | |||||||||
Non-current provisions |
13 | |||||||||
Defined benefit liabilities, net |
12 | |||||||||
Deferred tax liabilities |
23 | |||||||||
Other non-current liabilities |
25 | |||||||||
|
|
|
|
|||||||
Total non-current liabilities |
||||||||||
|
|
|
|
|||||||
Total liabilities |
||||||||||
|
|
|
|
|||||||
Equity |
||||||||||
Share capital |
15 | |||||||||
Share premium |
15 |
|||||||||
Retained earnings |
15 | |||||||||
Reserves |
15 | ( |
) | |||||||
|
|
|
|
|||||||
Total equity attributable to owners of the Controlling Company |
||||||||||
|
|
|
|
|||||||
Non-controlling interests |
||||||||||
|
|
|
|
|||||||
Total equity |
||||||||||
|
|
|
|
|||||||
Total liabilities and equity |
W |
|||||||||
|
|
|
|
(In millions of won, except earnings per share) |
Note |
2019 |
2020 |
2021 |
||||||||||
Revenue |
16, 28 | W |
||||||||||||
Cost of sales |
7, 17, 28 | ( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||
Selling expenses |
17,18 | ( |
) | ( |
) | ( |
) | |||||||
Administrative expenses |
17,18 | ( |
) | ( |
) | ( |
) | |||||||
Research and development expenses |
17 | ( |
) | ( |
) | ( |
) | |||||||
Other income |
20 | |||||||||||||
Other expenses |
17,20 | ( |
) | ( |
) | ( |
) | |||||||
Finance income |
21 | |||||||||||||
Finance costs |
21 | ( |
) | ( |
) | ( |
) | |||||||
Equity in income of equity accounted investees, net |
8 | |||||||||||||
|
|
|
|
|
|
|||||||||
Profit (loss) before income tax |
( |
) | ( |
) | ||||||||||
Income tax expense (benefit) |
22 | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||
Profit (loss) for the year |
( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
||||||||||||||
Items that will never be reclassified to profit or loss |
||||||||||||||
Remeasurements of net defined benefit liabilities |
12, 22 | ( |
) | |||||||||||
Other comprehensive income (loss) from associates |
8 | ( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
( |
) |
(In millions of won, except earnings per share) |
Note |
2019 |
2020 |
2021 |
||||||||||
Items that are or may be reclassified to profit or loss |
||||||||||||||
Loss on valuation of derivative |
15,22 | W |
— | — | ( |
) | ||||||||
Foreign currency translation differences for foreign operations |
22 | |||||||||||||
Other comprehensive income (loss) from associates |
8, 22 | ( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
Other comprehensive income for the year, net of income tax |
|
|
||||||||||||
|
|
|
|
|
|
|||||||||
Total comprehensive income (loss) for the year |
W |
( |
) | |
||||||||||
|
|
|
|
|
|
|||||||||
Profit (loss) attributable to: |
||||||||||||||
Owners of the Controlling Company |
( |
) | ( |
) | ||||||||||
Non-controlling interests |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Profit (loss) for the year |
W |
( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||
Total comprehensive income (loss) attributable to: |
||||||||||||||
Owners of the Controlling Company |
( |
) | ||||||||||||
Non-controlling interests |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Total comprehensive income (loss) for the year |
W |
( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
Earnings (loss) per share (in won) |
||||||||||||||
Basic earnings (loss) per share |
24 | W |
( |
) | ( |
) | ||||||||
Diluted earnings (loss) per share |
24 | W |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
Attributable to owners of the Controlling Company |
||||||||||||||||||||||||||||
(In millions of won) |
Share capital |
Share premium |
Retained earnings |
Reserves |
Sub-total |
Non-controlling interests |
Total equity |
|||||||||||||||||||||
Balances at January 1, 2019 |
W |
( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income (loss) for the year |
||||||||||||||||||||||||||||
Loss for the year |
— | — | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Other comprehensive income |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
W |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transaction with owners, recognized directly in equity |
||||||||||||||||||||||||||||
Subsidiaries’ dividends distributed to non-controlling interests |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Capital contribution from non-controlling interests |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances at December 31, 2019 |
W |
( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances at January 1, 2020 |
W |
( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income (loss) for the year (Restated) |
||||||||||||||||||||||||||||
Profit (loss) for the year |
— | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||
Other comprehensive income |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
W |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transaction with owners, recognized directly in equity |
||||||||||||||||||||||||||||
Subsidiaries’ dividends distributed to non-controlling interests |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Capital contribution from non-controlling interests |
— | — | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances at December 31, 2020 |
W |
( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Controlling Company |
||||||||||||||||||||||||||||
(In millions of won) |
Share capital |
Share premium |
Retained earnings |
Reserves |
Sub-total |
Non-controlling interests |
Total equity |
|||||||||||||||||||||
Balances at January 1, 2021 |
W |
|
( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income (loss) for the year |
||||||||||||||||||||||||||||
Profit for the year |
— | — | — | |||||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
W |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transaction with owners, recognized directly in equity |
||||||||||||||||||||||||||||
Subsidiaries’ dividends distributed to non-controlling i nterests |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Capital contribution from non-controlling interests |
— | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances at December 31, 2021 |
W |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
Note |
2019 |
2020 |
2021 |
||||||||||
Cash flows from operating activities: |
||||||||||||||
Profit (loss) for the year |
W |
( |
) | ( |
) | |||||||||
Adjustments for: |
||||||||||||||
Income tax expense (benefit) |
22 | ( |
) | ( |
) | |||||||||
Depreciation and amortization |
9,10,17 | |
|
|||||||||||
Gain on foreign currency translation |
( |
) | ( |
) | ( |
) | ||||||||
Loss on foreign currency translation |
||||||||||||||
Expenses related to defined benefit plans |
12,19 | |||||||||||||
Gain on disposal of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||||
Loss on disposal of property, plant and equipment |
||||||||||||||
Impairment loss on property, plant and equipment |
||||||||||||||
Impairment loss on inventories |
||||||||||||||
Bad debt expense (reversal) |
( |
) | ||||||||||||
Reversal of impairment loss on property, plant and equipment |
— | — | ( |
) | ||||||||||
Gain on disposal of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||
Loss on disposal of intangible assets |
— | |||||||||||||
Impairment loss on intangible assets |
||||||||||||||
Reversal of impairment loss on intangible assets |
( |
) | ( |
) | ( |
) | ||||||||
Impairment loss on other assets |
— | — | ||||||||||||
Gain on disposal of non-current assets held for sale |
( |
) | — | — | ||||||||||
Expense on increase of provisions |
||||||||||||||
Finance income |
( |
) | ( |
) | ( |
) | ||||||||
Finance costs |
||||||||||||||
Equity in income of equity method accounted investees, net |
8 | ( |
) | ( |
) | ( |
) | |||||||
Loss on liquidation of investments in subsidiaries |
— | — | ||||||||||||
Other income |
( |
) | ( |
) | — | |||||||||
Other expenses |
— | |||||||||||||
(In millions of won) |
Note |
2019 |
2020 |
2021 |
||||||||||||
Changes in: |
||||||||||||||||
Trade accounts and notes receivable |
W |
( |
) | ( |
) | ( |
) | |||||||||
Other accounts receivable |
( |
) | ||||||||||||||
Inventories |
( |
) | ( |
) | ||||||||||||
Lease receivables |
||||||||||||||||
Other current assets |
( |
) | ||||||||||||||
Other non-current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Trade accounts and notes payable |
( |
) | ||||||||||||||
Other accounts payable |
( |
) | ||||||||||||||
Accrued expenses |
( |
) | ||||||||||||||
Provisions |
( |
) | ( |
) | ( |
) | ||||||||||
Advances received |
( |
) | ( |
) | ( |
) | ||||||||||
Other current liabilities |
( |
) | ||||||||||||||
Defined benefit liabilities, net |
( |
) | ( |
) | ( |
) | ||||||||||
Long-term advances received |
— | — | ||||||||||||||
Other non-current liabilities |
||||||||||||||||
Cash generated from operating activities |
||||||||||||||||
Income taxes paid |
( |
) | ( |
) | ( |
) | ||||||||||
Interests received |
||||||||||||||||
Interests paid |
( |
) | ( |
) | ( |
) | ||||||||||
Net cash provided by operating activities |
W |
|||||||||||||||
(In millions of won) |
Note |
2019 |
2020 |
2021 |
||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Dividends received |
W |
|||||||||||||||
Increase in deposits in banks |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from withdrawal of deposits in banks |
||||||||||||||||
Acquisition of financial assets at fair value through profit or loss |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from disposal of financial asset s at fair value through profit or loss |
||||||||||||||||
Acquisition of financial assets at fair value through other comprehensive income |
( |
) | — | — | ||||||||||||
Proceeds from disposal of financial assets at fair value through other comprehensive income |
||||||||||||||||
Proceeds from disposal of investments in equity accounted investees |
||||||||||||||||
Acquisition of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from disposal of property, plant and equipment |
||||||||||||||||
Acquisition of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from disposal of intangible assets |
||||||||||||||||
Government grants received |
||||||||||||||||
Proceeds from disposal of non-current assets held for sale |
— | — | ||||||||||||||
Receipt from settlement of derivatives |
||||||||||||||||
Increase in short-term loans |
( |
) | — | — | ||||||||||||
Proceeds from collection of short-term loans |
||||||||||||||||
Increase in long-term loans |
( |
) | — | ( |
) | |||||||||||
Increase in deposits |
( |
) | ( |
) | ( |
) | ||||||||||
Decrease in deposits |
||||||||||||||||
Proceeds from disposal of other assets |
— | |||||||||||||||
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
W |
( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
(In millions of won) |
Note |
2019 |
2020 |
2021 |
||||||||||
Cash flows from financing activities: |
27 | |||||||||||||
Proceeds from short-term borrowings |
W |
|||||||||||||
Repayments of short-term borrowings |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from issuance of bonds |
||||||||||||||
Proceeds from long-term borrowings |
||||||||||||||
Repayments of current portion of long-term borrowings and bonds |
( |
) | ( |
) | ( |
) | ||||||||
Payment of lease liabilities |
( |
) | ( |
) | ( |
) | ||||||||
Capital contribution from non-controlling interests |
— | |||||||||||||
Subsidiaries’ dividends distributed to non-controlling interests |
( |
) | ( |
) | — | |||||||||
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) financing activities |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||||||||
Cash and cash equivalents at January 1 |
||||||||||||||
Effect of exchange rate fluctuations on cash held |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at December 31 |
W |
|||||||||||||
|
|
|
|
|
|
1. | Reporting Entity |
(a) | Description of the Controlling Company |
1. | Reporting Entity, Continued |
(b) | Consolidated Subsidiaries as of December 31, 2021 |
(In millions) |
||||||||||||||||
Subsidiaries |
Location |
Percentage of ownership |
Fiscal year end |
Date of incorporation |
Business |
Capital stocks |
||||||||||
LG Display America, Inc. |
% | USD | |
|||||||||||||
LG Display Germany GmbH |
% | EUR | ||||||||||||||
LG Display Japan Co., Ltd. |
% | JPY | ||||||||||||||
LG Display Taiwan Co., Ltd. |
% | NTD | |
|||||||||||||
LG Display Nanjing Co., Ltd. |
% | CNY | |
|||||||||||||
LG Display Shanghai Co., Ltd. |
% | CNY | ||||||||||||||
LG Display Guangzhou Co., Ltd. |
% | CNY | ||||||||||||||
LG Display Shenzhen Co., Ltd. |
% | CNY | ||||||||||||||
LG Display Singapore Pte. Ltd. |
% | USD | ||||||||||||||
L&T Display Technology (Fujian) Limited |
% | CNY | ||||||||||||||
LG Display Yantai Co., Ltd. |
% | CNY | ||||||||||||||
Nanumnuri Co., Ltd. |
% | KRW | ||||||||||||||
LG Display (China) Co., Ltd. |
% | CNY | ||||||||||||||
Unified Innovative Technology, LLC |
% | USD | ||||||||||||||
LG Display Guangzhou Trading Co., Ltd. |
% | CNY | ||||||||||||||
Global OLED Technology, LLC |
% | USD | ||||||||||||||
LG Display Vietnam Haiphong Co., Ltd. |
% | USD | ||||||||||||||
Suzhou Lehui Display Co., Ltd. |
% | CNY | ||||||||||||||
LG DISPLAY FUND I LLC(*) |
% | USD | ||||||||||||||
LG Display High-Tech (China) Co., Ltd. |
% | CNY | |
(*) | For the year ended December 31, 2021, the Controlling Company contributed W |
1. | Reporting Entity, Continued |
(c) | Information of subsidiaries (be which have significant fore eliminati on of intercomp any transactions) non-controlling interests as of and for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
2019 |
||||||||
LG Display (China) Co., Ltd. |
LG Display High-Tech (China) Co., Ltd. |
|||||||
Percentage of ownership in non-controlling interest(%) |
||||||||
Current assets |
W |
|||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Net assets |
||||||||
Book value of non-controlling interests |
||||||||
Revenue |
W |
|||||||
Profit |
( |
) | ||||||
Profit non-controlling interests |
( |
) | ||||||
Cash flows from operating activities |
W |
( |
) | |||||
Cash flows from investing activities |
( |
) | ||||||
Cash flows from financing activities |
( |
) | ||||||
Effect of exchange rate fluctuations on cash held |
( |
) | ||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at January 1 |
||||||||
Cash and cash equivalents at December 31 |
||||||||
Dividends distributed to non-controlling interests |
W |
— |
1. | Reporting Entity, Continued |
(In millions of won) |
||||||||
2020 |
||||||||
LG Display (China) Co., Ltd. |
LG Display High-Tech (China) Co., Ltd. |
|||||||
Percentage of ownership in non-controlling interest(%) |
||||||||
Current assets |
W |
|||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Net assets |
||||||||
Book value of non-controlling interests |
||||||||
Revenue |
W |
|||||||
Profit |
( |
) | ||||||
Profit non-controlling interests |
( |
) | ||||||
Cash flows from operating activities |
W |
|||||||
Cash flows from investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities |
||||||||
Effect of exchange rate fluctuations on cash held |
( |
) | ||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at January 1 |
||||||||
Cash and cash equivalents at December 31 |
||||||||
Dividends distributed to non-controlling interests |
W |
— |
1. | Reporting Entity, Continued |
(In millions of won) |
||||||||
2021 |
||||||||
LG Display (China) Co., Ltd. |
LG Display High-Tech (China) Co., Ltd. |
|||||||
Percentage of ownership in non-controlling interest(%) |
||||||||
Current assets |
W |
|||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Net assets |
||||||||
Book value of non-controlling interests |
||||||||
Revenue |
W |
|||||||
Profit for the year |
||||||||
Profit attributable to non-controlling interests |
||||||||
Cash flows from operating activities |
W |
|||||||
Cash flows from investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities |
( |
) | ( |
) | ||||
Effect of exchange rate fluctuations on cash held |
||||||||
Net decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at January 1 |
||||||||
Cash and cash equivalents at December 31 |
||||||||
Dividends distributed to non-controlling interests |
W |
— |
2. | Basis of Presenting Financial Statements |
(a) | Statement of Compliance |
(b) | Basis of Measurement |
• | derivative financial instruments at fair value, financial assets at fair value through profit or loss (“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss (“FVTPL”), and |
• | net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets |
(c) | Functional and Presentation Currency |
(d) | Use of Estimates and Judgments |
• | Financial instruments (note 3(f)) |
• | Impairment assessment of non-financial assets (notes 3(k), 10) |
• | Deferred tax assets and liabilities (notes 3(s), 23) |
2. | Basis of Presenting Financial Statements, Continued |
(d) | Use of Estimates and Judgments, Continued |
• | Provisions (notes 3(m), 13) |
• | Inventories (notes 3(e), 7) |
• | Property, plant and equipment (note 9) |
• | Intangible assets (Impairment assessment of non-financial assets) (note 10) |
• | Employee benefits (note 12) |
• | Deferred tax assets and liabilities (note 23) |
3. | Summary of Significant Accounting Policies |
(a) | Changes in Accounting Policies |
(i) | Retrospective application of changes in accounting policies |
3. | Summary of Significant Accounting Policies, Continued |
(a) | Changes in Accounting Policies, Continued |
(ii) | Impact on the consolidated financial statements |
i) | Impacts on the consolidated statement of financial position as of December 31, 2020 |
(In millions of won) |
||||||||||||
As previously reported |
Adjustments |
As restated |
||||||||||
Assets |
||||||||||||
Property, plant and equipment |
W |
( |
) | |||||||||
Deferred tax assets |
||||||||||||
W |
( |
) | ||||||||||
Equity |
||||||||||||
Retained earnings |
W |
( |
) |
ii) | Impacts on the consolidated statement of financial position as of December 31, 2021 |
(In millions of won) |
||||||||||||
Amounts before adoption of change |
Adjustments |
As reported |
||||||||||
Assets |
||||||||||||
Property, plant and equipment |
W |
( |
) | |||||||||
Deferred tax assets |
||||||||||||
W |
( |
) | ||||||||||
Equity |
||||||||||||
Retained earnings |
W |
( |
) |
3. | Summary of Significant Accounting Policies, Continued |
(a) | Changes in Accounting Policies, Continued |
(ii) | Impact on the consolidated financial statements, Continued |
iii) | Impacts on the consolidated statement of comprehensive income for the year ended December 31, 2020 |
(In millions of won, except earnings per share) |
||||||||||||
As previously reported |
Adjustments |
As restated |
||||||||||
Revenue |
W |
|||||||||||
Cost of sales |
( |
) | ( |
) | ( |
) | ||||||
Gross profit |
W |
( |
) | |||||||||
Operating loss |
W |
( |
) | ( |
) | ( |
) | |||||
Loss before income tax |
W |
( |
) | ( |
) | ( |
) | |||||
Income tax benefit |
( |
) | ( |
) | ( |
) | ||||||
Loss for the year |
W |
( |
) | ( |
) | ( |
) | |||||
Basic and diluted loss per share (in won) |
W |
( |
) | ( |
) | ( |
) |
iv) | Impacts on the consolidated statement of comprehensive income for the year ended December 31, 2021 |
(In millions of won, except earnings per share) |
||||||||||||
Amounts before adoption of change |
Adjustments |
As reported |
||||||||||
Revenue |
W |
|||||||||||
Cost of sales |
( |
) | |
( |
) | |||||||
Gross profit |
W |
|||||||||||
Operating income |
W |
|||||||||||
Profit before income tax |
W |
|||||||||||
Income tax expense |
||||||||||||
Profit for the year |
W |
|||||||||||
Basic earnings per share (in won) |
W |
|||||||||||
Diluted earnings per share (in won) |
W |
3. |
Summary of Significant Accounting Policies, Continued |
(a) |
Changes in Accounting Policies, Continued |
(ii) |
Impact on the consolidated financial statements, Continued |
v) |
Impacts on the consolidated statement of changes in equity for the year ended December 31, 2020 |
- As previously reported |
||||||||||||
(In millions of won) |
||||||||||||
Attributable to owners of the Controlling Company |
||||||||||||
Retained earnings |
Sub-total |
Total equity |
||||||||||
Balances at January 1, 2020 |
W |
|||||||||||
Loss for the year |
( |
) |
( |
) |
( |
) | ||||||
Balances at December 31, 2020 |
W |
|||||||||||
- Adjustments |
||||||||||||
(In millions of won) |
||||||||||||
Attributable to owners of the Controlling Company |
||||||||||||
Retained earnings |
Sub-total |
Total equity |
||||||||||
Balances at January 1, 2020 |
W |
|||||||||||
Loss for the year |
( |
) |
( |
) |
( |
) | ||||||
Balances at December 31, 2020 |
W |
( |
) |
( |
) |
( |
) | |||||
- As restated |
||||||||||||
(In millions of won) |
||||||||||||
Attributable to owners of the Controlling Company |
||||||||||||
Retained earnings |
Sub-total |
Total equity |
||||||||||
Balances at January 1, 2020 |
W |
|||||||||||
Loss for the year |
( |
) |
( |
) |
( |
) | ||||||
Balances at December 31, 2020 |
W |
|||||||||||
3. | Summary of Significant Accounting Policies, Continued |
(a) | Changes in Accounting Policies, Continued |
(ii) | Impact on the consolidated financial statements, Continued |
vi) |
Impacts on the consolidated statement of cash flows for the year ended December 31, 2020 |
(In millions of won) |
||||||||||||
As reported |
Adjustments |
Restated |
||||||||||
Net cash provided by operating activities(*) |
W |
( |
) | |||||||||
Net cash used in investing activities(*) |
( |
) | ( |
) |
(*) |
The net proceeds from selling items produced during the test are reclassified from net cash used in investing activity to net cash provided by operating activity. |
3. | Summary of Significant Accounting Policies, Continued |
(b) | Consolidation |
(i) | Business Combinations |
(ii) | Subsidiaries |
(iii) | Non-controlling interests |
(iv) | Loss of Control |
3. | Summary of Significant Accounting Policies, Continued |
(b) | Consolidation, Continued |
(v) | Associates and joint ventures (equity method investees) |
(vi) | Transactions eliminated on consolidation |
3. | Summary of Significant Accounting Policies, Continued |
(c) | Foreign Currency Transaction and Translation |
3. | Summary of Significant Accounting Policies, Continued |
(d) | Cash and cash equivalents |
(e) | Inventories |
(f) | Financial Instruments |
(i) | Non-derivative financial assets |
i) | Financial assets |
3. | Summary of Significant Accounting Policies, Continued |
(f) | Financial Instruments, Continued |
• | it is held within a business model whose objective is to hold assets to collect contractual cash flows; 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 |
• | the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
ii) | Financial assets: business model |
• | the stated policies and objectives for the portfolio and the operation of those policies in practice (these include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets); |
• | how the performance of the portfolio is evaluated and reported to the Group’s management; |
• | the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; and |
• | the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity. |
3. | Summary of Significant Accounting Policies, Continued |
(f) | Financial Instruments, Continued |
iii) | Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest |
• | 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) |
iv) | Financial assets: Subsequent measurement and gains and losses |
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. |
3. | Summary of Significant Accounting Policies, Continued |
(f) | Financial Instruments, Continued |
• | 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. |
(ii) | Non-derivative financial liabilities |
3. | Summary of Significant Accounting Policies, Continued |
(f) |
Financial Instruments, Continued |
(ii) |
Non-derivative financial liabilities, Continued |
(iii) | Share Capital |
3. | Summary of Significant Accounting Policies, Continued |
(f) | Financial Instruments, Continued |
(iv) | Derivative financial instruments |
i) | Fair value hedges |
ii) | Cash flow hedges |
3. | Summary of Significant Accounting Policies, Continued |
(f) | Financial Instruments, Continued |
(g) | Property, Plant and Equipment |
(i) | Recognition and measurement |
(ii) | Subsequent costs |
(iii) | Depreciation |
Estimated useful lives (years) | ||
Buildings and structures |
~ | |
Machinery |
||
Furniture and fixtures |
||
Equipment, tools and vehicles |
||
Right-of-use |
( |
(*) | The Group depreciates the right-of-use right-of-use |
3. | Summary of Significant Accounting Policies, Continued |
(h) | Borrowing Costs |
(i) | Government Grants |
(i) | Grants related to the purchase or construction of assets |
(ii) | Grants for compensating the Group’s expenses incurred |
(iii) | Other government grants |
(j) | Intangible Assets |
(i) | Goodwill |
3. | Summary of Significant Accounting Policies, Continued |
(j) | Intangible Assets, Continued |
(ii) | Research and development |
• | the technical feasibility of completing the intangible asset so that it will be available for use or sale, |
• | its intention to complete the intangible asset and use or sell it, |
• | its ability to use or sell the intangible asset, |
• | how the intangible asset will generate probable future economic benefits (among other things, the Group can demonstrate the usefulness of the intangible asset by existence of a market for the output of the intangible asset or the intangible asset itself if it is to be used internally), |
• | the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and |
• | its ability to measure reliably the expenditure attributable to the intangible asset during its development. |
(iii) | Other intangible assets |
(iv) | Subsequent costs |
3. | Summary of Significant Accounting Policies, Continued |
(j) | Intangible Assets, Continued |
(v) | Amortization |
Estimated useful lives (years) | ||
Intellectual property rights |
||
Rights to use electricity, water and gas supply facilities |
||
Software |
||
Customer relationships |
||
Technology |
||
Development costs |
( | |
Condominium and golf club memberships |
(*1) | Software license and patent royalty are amortized over the useful lives considering the contract period. |
(*2) | Capitalized development costs are amortized over the useful lives considering the life cycle of the developed products. Amortization of capitalized development costs are recognized in research and development expenses in the consolidated statement of comprehensive income (loss). |
(k) | Impairment |
(i) | Financial assets |
• | debt instruments that are determined to have low credit risk at the reporting date; and |
• | other debt instruments and bank deposits for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition. |
3. | Summary of Significant Accounting Policies, Continued |
(k) | Impairment, Continued |
• | significant financial difficulty of the issuer or the borrower; |
• | the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; |
• | it is probable that the borrower will enter bankruptcy or other financial reorganization; or |
• | the disappearance of an active market for a security because of financial difficulties. |
3. | Summary of Significant Accounting Policies, Continued |
(k) | Impairment, Continued |
(ii) | Non-financial assets |
3. | Summary of Significant Accounting Policies, Continued |
(l) | Leases |
(i) | As a lessee |
3. | Summary of Significant Accounting Policies, Continued |
(l) | Lease, Continued |
• | 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; and |
• | 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. |
(ii) | As a lessor |
3. | Summary of Significant Accounting Policies, Continued |
(l) | Lease, Continued |
(m) | Provisions |
3. | Summary of Significant Accounting Policies, Continued |
(n) | Non-current Assets Held for Sale |
(o) | Employee Benefits |
(i) | Short-term employee benefits |
(ii) | Other long-term employee benefits |
(iii) | Defined contribution plan |
3. | Summary of Significant Accounting Policies, Continued |
(o) | Employee Benefits, Continued |
(iv) | Defined benefit plan |
(v) | Termination benefits |
3. | Summary of Significant Accounting Policies, Continued |
(p) | Revenue from contracts with customers |
(q) | Operating Segments |
3. | Summary of Significant Accounting Policies, Continued |
(r) | Finance Income and Finance Costs |
(s) | Income Tax |
(i) | Current tax |
(ii) | Deferred tax |
3. | Summary of Significant Accounting Policies, Continued |
(s) | Income Tax, Continued |
(t) | Earnings (Loss) Per Share |
(u) |
Standards issued but not yet effective |
(i) |
Amendment of Reference to the Definition of an Asset and a Liability in the Conceptual Framework (Amendments to IFRS 3, Business Combinations |
(ii) |
Classification of Liabilities as Current or Non-current (Amendments to IAS 1, Presentation of Financial Statements |
3. | Summary of Significant Accounting Policies, Continued |
(u) | Standards issued but not yet effective, Continued |
(iii) |
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37, Provisions, Liabilities and Contingent Assets) |
(iv) | Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 , Income Taxes |
(v) |
Definition of Material ity (Amendments to IAS 1, Presentation of Financial Statement ) |
(vi) |
Definition of Accounting Estimates (Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors ) |
3. | Summary of Significant Accounting Policies, Continued |
(u) |
Standards issued but not yet effective, Continued |
(vii) |
Annual Improvements to IFRSs 2018-2020 Cycle |
• |
IAS 1, First-time Adoption of International Financial Reporting Standards: Subsidiary as a First-time Adopter |
• |
IAS 1, Financial Instruments: Fees in the ‘10 percent’ Test for Derecognition of Financial Liabilities |
• |
IFRS 16, Leases: Lease Incentives |
• |
IAS 41, Agriculture: Taxation in Fair Value Measurements |
4. | Cash and Cash Equivalents and Deposits in Banks |
( In millions of won ) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Current assets |
||||||||
Cash and cash equivalents |
||||||||
Cash |
W |
|||||||
Demand deposits |
||||||||
W |
||||||||
Deposits in banks |
||||||||
Time deposits |
W |
|||||||
Restricted deposits(*) |
||||||||
W |
||||||||
Non-current assets |
||||||||
Deposits in banks |
||||||||
Restricted deposits(*) |
W |
|||||||
(*) | Includes funds deposited under agreements on mutually beneficial cooperation to aid LG Group companies’ suppliers, restricted deposits pledged to enforce the Group’s investment plans upon the receipt of grants from Gumi city and Gyeongsangbuk-do, restricted deposits pledged to guarantee a subsidiary’s borrowings and others. |
5. | Trade Accounts and Notes Receivable, Other Accounts Receivable and Other Current Assets |
(a) | Trade accounts and notes receivable as of December 31, 2020 and December 31, 2021 are as follows: |
( In millions of won ) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Due from third parties |
W |
|||||||
Due from related parties |
||||||||
W |
||||||||
(b) | Other accounts receivable as of December 31, 2020 and December 31, 2021 are as follows: |
( In millions of won ) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Current assets |
||||||||
Non-trade receivables, net |
W |
|||||||
Accrued income |
||||||||
W |
||||||||
Non-current assets |
||||||||
Long-term non-trade receivables |
W |
|||||||
W |
||||||||
5. |
Trade Accounts and Notes Receivable, Other Accounts Receivable and Other Current Assets, Continued |
(c) | The aging of trade accounts and notes receivable, and other accounts receivable as of December 31, 2020 and December 31, 2021 are as follows: |
(In millions of won) |
December 31, 2020 |
|||||||||||||||
Book value |
Allowance for impairment |
|||||||||||||||
Trade accounts and notes receivable |
Other accounts receivable |
Trade accounts and notes receivable |
Other accounts receivable |
|||||||||||||
Current |
W |
( |
) | ( |
) | |||||||||||
1-15 days past due |
— | ( |
) | |||||||||||||
16-30 days past due |
— | — | ||||||||||||||
31-60 days past due |
— | — | ( |
) | ||||||||||||
More than 60 days past due |
— | — | ( |
) | ||||||||||||
W |
( |
) | ( |
) | ||||||||||||
(In millions of won) |
December 31, 2021 |
|||||||||||||||
Book value |
Allowance for impairment |
|||||||||||||||
Trade accounts and notes receivable |
Other accounts receivable |
Trade accounts and notes receivable |
Other accounts receivable |
|||||||||||||
Current |
W |
( |
) | ( |
) | |||||||||||
1-15 days past due |
— | ( |
) | |||||||||||||
16-30 days past due |
— | — | ||||||||||||||
31-60 days past due |
— | — | ||||||||||||||
More than 60 days past due |
— | ( |
) | |||||||||||||
W |
( |
) | ( |
) | ||||||||||||
(In millions of won) |
Trade accounts and notes receivable |
|||||||||||
2019 |
2020 |
2021 |
||||||||||
Balance at the beginning of the year |
W |
|
||||||||||
(Reversal of) bad debt expense |
( |
) | ||||||||||
Balance at the end of the year |
W |
|
|
|||||||||
(In millions of won) |
Other accounts receivable |
|||||||||||
2019 |
2020 |
2021 |
||||||||||
Balance at the beginning of the year |
W |
|
||||||||||
(Reversal of) bad debt expense |
( |
) | ||||||||||
Write-off |
— | ( |
) | — | ||||||||
Balance at the end of the year |
W |
|
|
|||||||||
5. | Trade Accounts and Notes Receivable, Other Accounts Receivable and Other Current Assets, Continued |
(d) | Other current assets as of December 31, 2020 and December 31, 2021 are as follows: |
(In millions of won) |
December 31, 2020 |
December 31, 2021 |
||||||
Advanced payments |
W |
|||||||
Prepaid expenses |
||||||||
Value added tax refundable |
||||||||
Right to recover returned goods |
||||||||
W |
||||||||
6. | Other Financial Assets |
(In millions of won) |
December 31, 2020 |
December 31, 2021 |
||||||
Current assets |
||||||||
Financial assets at fair value through profit or loss |
||||||||
Convertible securities |
W |
— | ||||||
Derivatives(*1) |
||||||||
W |
||||||||
Cash flow hedging derivatives |
||||||||
Derivatives(*2) |
W |
— | ||||||
Financial assets at fair value through other comprehensive income |
||||||||
Debt instruments |
||||||||
Government bonds |
W |
|||||||
Financial assets carried at amortized cost |
||||||||
Deposits |
W |
|||||||
Short-term loans |
||||||||
Lease receivables |
||||||||
W |
||||||||
W |
||||||||
Non-current assets |
||||||||
Financial assets at fair value through profit or loss |
||||||||
Equity instruments |
W |
|||||||
Convertible securities |
||||||||
Derivatives(*1) |
||||||||
W |
||||||||
Financial assets at fair value through other comprehensive income |
||||||||
Debt instruments |
||||||||
Government bonds |
W |
|||||||
Financial assets carried at amortized cost |
||||||||
Deposits |
W |
|||||||
Long-term loans |
||||||||
Lease receivables |
||||||||
W |
||||||||
W |
|
|||||||
(*1) | Represents cross currency interest rate swap contracts and others entered into by the Group to hedge currency and interest rate risks with respect to foreign currency denominated borrowings and bonds. The contracts are not designated as hedging instruments. |
(*2) | Represents forward exchange contracts entered into by the Group to hedge exchange rate risks with respect to forecast sales in foreign currency. The contracts are designated as hedging instruments. |
7. | Inventories |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Finished goods |
W |
|||||||
Work-in-process |
||||||||
Raw materials |
||||||||
Supplies |
||||||||
W |
||||||||
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Inventories recognized as cost of sales |
W |
|||||||||||
Inventory write-downs |
8. |
Investments in Equity Accounted Investees |
(a) |
Associates as of December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||
Associates |
Location |
Fiscal year end |
Date of incorporation |
Business |
2020 |
2021 |
||||||||||||||||||||
Percentage of ownership |
Carrying amount |
Percentage of ownership |
Carrying amount |
|||||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
y 2005 |
% | W |
% | W |
|||||||||||||||||||||
WooRee E&L Co., Ltd. |
e 2008 |
% | % | |||||||||||||||||||||||
YAS Co., Ltd. |
l 2002 |
% | % | |||||||||||||||||||||||
AVATEC Co., Ltd. |
t 2000 |
% | % | |||||||||||||||||||||||
Arctic Sentinel, Inc. |
e 2008 |
% | % | |||||||||||||||||||||||
Cynora GmbH(*1) |
h 2003 |
% | % | |||||||||||||||||||||||
Material Science Co., Ltd.(*2) |
y 2014 |
% | W |
% | W |
|||||||||||||||||||||
Nanosys Inc.(*3) |
y 2001 |
% | % | |||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||
W |
W |
|||||||||||||||||||||||||
|
|
|
|
8. |
Investments in Equity Accounted Investees, Continued |
(*1) |
During 2021, the Controlling Company recognized an impairment loss of W |
(*2) |
During 2021, the Controlling Company recognized a reversal of impairment loss of W |
(*3) |
During 2021, the Controlling Company recognized a reversal of impairment loss of W |
8. | Investments in Equity Accounted Investees, Continued |
8. | Investments in Equity Accounted Investees, Continued |
(b) | Summary of financial information of Paju Electric Glass Co., Ltd., a significant associate of the Group, as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 is as follows: |
(In millions of won) |
December 31, 2020 |
December 31, 2021 |
||||||
Total assets |
W |
|||||||
Current assets |
||||||||
Non-current assets |
||||||||
Total liabilities |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
(In millions of won) |
2019 |
2020 |
2021 |
|||||||||
Revenue |
W |
|||||||||||
Profit for the year |
||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||
Total comprehensive income |
(c) | Reconciliation from financial information of the significant associate to its carrying value in the consolidated financial statements as of December 31, 2020 and 2021 is as follows: |
(i) | As of December 31, 2020 |
(In millions of won) |
||||||||||||||||||||||||||||
Company |
Net asset |
Ownership interest |
Net asset (applying ownership interest) |
Goodwill |
Intra-group transaction |
Impairment loss |
Book value |
|||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
W |
% | ( |
) |
(ii) | As of December 31, 2021 |
(In millions of won) |
||||||||||||||||||||||||||||
Company |
Net asset |
Ownership interest |
Net asset (applying ownership interest) |
Goodwill |
Intra-group transaction |
Impairment loss |
Book value |
|||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
W |
% | ( |
) |
8. | Investments in Equity Accounted Investees, Continued |
(d) | Book value of other associates, in aggregate, as of December 31, 2020 and 2021 is as follows: |
(i) | As of December 31, 2020 |
(In millions of won) |
||||||||||||||||
Book value |
Net profit (loss) of associates (applying ownership interest) |
|||||||||||||||
Profit for the year |
Other comprehensive loss |
Total comprehensive income |
||||||||||||||
Other associates |
W |
( |
) |
(ii) | As of December 31, 2021 |
(In millions of won) |
||||||||||||||||
Book value |
Net profit of associates (applying ownership interest) |
|||||||||||||||
Profit for the year |
Other comprehensive income |
Total comprehensive income |
||||||||||||||
Other associates |
W |
8. | Investments in Equity Accounted Investees, Continued |
(e) | Changes in investments in associates accounted for using the equity method for the years ended December 31, 2020 and 2021 are as follows: |
(In millions of won) |
2020 |
|||||||||||||||||||||||||
Company |
January 1 |
Dividends received |
Equity income on investments |
Other comprehensive loss |
Other gain |
December 31 |
||||||||||||||||||||
Associates |
Paju Electric Glass Co., Ltd. | W |
( |
) | ( |
) | ||||||||||||||||||||
Others | ( |
) | ( |
) | ||||||||||||||||||||||
W |
( |
) | ( |
) | ||||||||||||||||||||||
(In millions of won) |
2021 |
|||||||||||||||||||||||||
Company |
January 1 |
Dividends received |
Equity income on investments |
Other comprehensive income (loss) |
Other gain |
December 31 |
||||||||||||||||||||
Associates |
Paju Electric Glass Co., Ltd. | W |
( |
) | ( |
) | ||||||||||||||||||||
Others | ( |
) | ||||||||||||||||||||||||
W |
( |
) | ||||||||||||||||||||||||
9. | Property, Plant and Equipment |
(a) | Changes in property, plant and equipment for the year ended December 31, 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||
Land |
Buildings and structures |
Machinery and equipment |
Furniture and fixtures |
Construction -in-progress (*1) |
Right-of- use asset |
Others |
Total |
|||||||||||||||||||||||||
Acquisition cost as of January 1, 2020 |
W |
|||||||||||||||||||||||||||||||
Accumulated depreciation as of January 1, 2020 |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Accumulated impairment loss as of January 1, 2020 |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Book value as of January 1, 2020 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Additions |
— | — | — | — | — | |||||||||||||||||||||||||||
Depreciation |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||
Impairment loss |
— | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
Others(*2) |
( |
) | — | — | ||||||||||||||||||||||||||||
Government grants received |
— | ( |
) | ( |
) | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||
Effect of movements in exchange rates |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Book value as of December 31, 2020 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Acquisition cost as of December 31, 2020 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accumulated depreciation as of December 31, 2020 |
W |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accumulated impairment loss as of December 31, 2020 |
W |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2020, construction-in-progress mainly relates to construction of manufacturing facilities. |
(*2) |
Others mainly represent the reclassification of construction-in-progress |
9. | Property, Plant and Equipment, Continued |
(b) | Changes in property, plant and equipment for the year ended December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||
Land |
Buildings and structures |
Machinery and equipment |
Furniture and fixtures |
Construction -in-progress (*1) |
Right-of- use asset |
Others |
Total |
|||||||||||||||||||||||||
Acquisition cost as of January 1, 2021 |
W |
|||||||||||||||||||||||||||||||
Accumulated depreciation as of January 1, 2021 |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Accumulated impairment loss as of January 1, 2021 |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Book value as of January 1, 2021 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Additions |
— | — | — | — | — | |||||||||||||||||||||||||||
Depreciation |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Impairment loss |
— | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
Others(*2) |
— | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Government grants received |
— | ( |
) | ( |
) | ( |
) | — | — | — | ( |
) | ||||||||||||||||||||
Effect of movements in exchange rates |
— | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Book value as of December 31, 2021 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Acquisition cost as of December 31, 2021 |
W |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accumulated depreciation as of December 31, 2021 |
W |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accumulated impairment loss as of December 31, 2021 |
W |
— | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2021, construction-in-progress mainly relates to construction of manufacturing facilities. |
(*2) |
Others mainly represent the reclassification of construction-in-progress |
(c) | Capitalized borrowing costs and capitalization rate for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Capitalized borrowing costs |
W |
|||||||||||
Capitalization rate |
% | % | % |
10. | Intangible Assets and Non-financial Assets Impairment |
(a) | Changes in intangible assets for the year ended December 31, 2020 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||||||||||
Intellectual property rights |
Software |
Member- ships |
Development costs |
Construction- in-progress |
Customer relationships |
Technology |
Good- will |
Others (*2) |
Total |
|||||||||||||||||||||||||||||||
Acquisition cost as of January 1, 2020 |
W |
|||||||||||||||||||||||||||||||||||||||
Accumulated amortization as of January 1, 2020 |
( |
) | ( |
) | — | ( |
) | — | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||||
Accumulated impairment loss as of January 1, 2020 |
( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||
Book value as of January 1, 2020 |
W |
— | ||||||||||||||||||||||||||||||||||||||
Additions - internally developed |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Additions - external purchases |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Amortization(*1) |
( |
) | ( |
) | — | ( |
) | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||
Disposals |
— | — | ( |
) | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Impairment loss(*3) |
— | ( |
) | — | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||
Reversal of impairment loss |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Transfer from construction-in-progress |
— | — | — | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of movements in exchange rates |
( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Book value as of December 31, 2020 |
W |
— | — | |||||||||||||||||||||||||||||||||||||
Acquisition cost as of December 31, 2020 |
W |
|||||||||||||||||||||||||||||||||||||||
Accumulated amortization as of December 31, 2020 |
W |
( |
) | ( |
) | — | ( |
) | — | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
Accumulated impairment loss as of December 31, 2020 |
W |
( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
(*1) | The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. |
(*2) | Others mainly consist of rights to use electricity and gas supply facilities. |
(*3) |
The Group recognized an impairment loss amounting to W |
10. | Intangible Assets and Non-financial Assets Impairment, Continued |
(b) | Changes in intangible assets for the year ended December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||||||||||||||||||||||||||||||
Intellectual property rights |
Software |
Member- ships |
Development costs |
Construction -in-progress |
Customer relationships |
Technology |
Good- will |
Others (*2) |
Total |
|||||||||||||||||||||||||||||||
Acquisition cost as of January 1, 2021 |
W |
|||||||||||||||||||||||||||||||||||||||
Accumulated amortization as of January 1, 2021 |
( |
) | ( |
) | — | ( |
) | — | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||||
Accumulated impairment loss as of January 1, 2021 |
( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Book value as of January 1, 2021 |
W |
— | ||||||||||||||||||||||||||||||||||||||
Additions - internally developed |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Additions - external purchases |
— | — | — | — | ||||||||||||||||||||||||||||||||||||
Amortization(*1) |
( |
) | ( |
) | — | ( |
) | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||
Disposals |
— | — | ( |
) | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Impairment loss(*3) |
( |
) | ( |
) | — | ( |
) | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||
Reversal of impairment loss |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Transfer from construction-in-progress |
— | — | ( |
) | ( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Effect of movements in exchange rates |
( |
) | — | ( |
) | — | — | — | ( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Book value as of December 31, 2021 |
W |
— | — | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Acquisition cost as of December 31, 2021 |
W |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accumulated amortization as of December 31, 2021 |
W |
( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accumulated impairment loss as of December 31, 2021 |
W |
( |
) | ( |
) | ( |
) |
( |
) | — | ( |
) | — | ( |
) |
— | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. |
(*2) |
Others mainly consist of rights to use electricity and gas supply facilities. |
(*3) |
The Group recognized an impairment loss amounting to W |
10. | Intangible Assets and Non-financial Assets Impairment, Continued |
(c) | Development costs as of December 31, 2020 and 2021 are as follows: |
(i) | As of December 31, 2020 |
(In millions of won) |
||||||||
Classification |
Product type |
Book Value |
||||||
Development completed | TV | W |
||||||
IT | ||||||||
Mobile and others | ||||||||
|
|
|||||||
W |
||||||||
|
|
|||||||
Development in process | TV | W |
||||||
IT | ||||||||
Mobile and others | ||||||||
|
|
|||||||
W |
||||||||
|
|
|||||||
W |
||||||||
|
|
(ii) | As of December 31, 2021 |
(In millions of won) |
||||||||
Classification |
Product type |
Book Value |
||||||
Development completed | TV | W |
||||||
IT | ||||||||
Mobile and others | ||||||||
|
|
|||||||
W |
||||||||
|
|
|||||||
Development in process | TV | W |
||||||
IT | ||||||||
Mobile and others | ||||||||
|
|
|||||||
W |
||||||||
|
|
|||||||
W |
||||||||
|
|
10. | Intangible Assets and Non-financial Assets Impairment, Continued |
(d) | Impairment assessment on CGU with allocated goodwill |
(In millions of won) |
||||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Display CGU |
W |
Pre-tax discount rate(*) |
Post-tax discount rate(*) |
Terminal growth rate |
||||||||||
Display CGU |
% |
% | % |
(*) | The discount rate was calculated using the weighted average cost of equity capital and debt and the beta of equity capital was calculated as the average of five global listed companies in the same industry and the Group. Cost of debt was calculated using the yield rate of non-guaranteed corporate bond considering the Group’s credit rating and debt ratio was determined using the average of the debt ratios of the five global listed companies in the same industry and the Group. The Group calculates the value in use of the CGU using post-tax cash flows and a post-tax discount which is not significantly different from the value in use calculated using pre-tax cash flows and pre-tax discount rate. |
11. | Financial Liabilities |
(a) | Financial liabilities as of December 31, 2020 and 2021 are as follows: |
( In millions of won ) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Current |
||||||||
Short-term borrowings |
W |
|||||||
Current portion of long-term borrowings and bonds |
||||||||
Derivatives(*1) |
||||||||
Cash flow hedging derivatives(*2) |
— | |||||||
Lease liabilities |
||||||||
W |
||||||||
Non-current |
||||||||
Won denominated borrowings |
W |
|||||||
Foreign currency denominated borrowings |
||||||||
Bonds |
||||||||
Derivatives(*1) |
||||||||
Lease liabilities |
||||||||
W |
||||||||
(*1) | Represents cross currency interest rate swap contracts and others entered into by the Group to hedge currency and interest rate risks with respect to foreign currency denominated borrowings and bonds. The contracts are not designated as hedging instruments. |
(*2) | Represents forward exchange contracts entered into by the Group to hedge |
(b) | Short-term borrowings as of December 31, 2020 and 2021 are as follows. |
(In millions of won, USD) |
||||||||||||
Lender |
Annual interest rate as of December 31, 2021 (%)(*) |
December 31, 2020 |
December 31, 2021 |
|||||||||
Standard Chartered Bank Korea Limited |
— | W |
||||||||||
Standard Chartered Bank Vietnam and others |
||||||||||||
Foreign currency equivalent |
USD | USD | |
|||||||||
W |
||||||||||||
(*) | ML represents Month LIBOR (London Inter-Bank Offered Rates). |
11. | Financial Liabilities, Continued |
(c) | Won denominated long-term borrowings as of December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
Lender |
Annual interest rate as of December 31, 2021 (%)(*) |
December 31, 2020 |
December 31, 2021 |
|||||||||
Woori Bank |
— | W |
— | |||||||||
Korea Development Bank and others |
|
|||||||||||
Less current portion of long-term borrowings |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
W |
||||||||||||
|
|
|
|
(*) |
CD represents certificate of deposit. |
(d) |
Foreign currency denominated long-term borrowings as of December 31, 2020 and 2021 are as follows: |
(In millions of won and USD, CNY) |
||||||||||||
Lender |
Annual interest rate as of December 31, 2021 (%)(*) |
December 31, 2020 |
December 31, 2021 |
|||||||||
The Export-Import Bank of Korea and others |
|
|
W |
|||||||||
China Construction Bank and others |
|
CNY: LPR(5Y)+0.34, LPR(1Y)-0.15~+0.15, 4.20 |
||||||||||
|
|
|
|
|||||||||
Foreign currency equivalent |
USD |
USD |
||||||||||
CNY |
CNY |
|||||||||||
Less current portion of long-term borrowings |
W |
( |
) |
( |
) | |||||||
|
|
|
|
|||||||||
W |
||||||||||||
|
|
|
|
(*) | LPR represents Loan Prime Rate of People’s Bank of China. |
11. | Financial Liabilities, Continued |
(e) | Details of bonds issued and outstanding as of December 31, 2020 and 2021 are as follows: |
(In millions of won and USD) |
||||||||||||||||
Maturity |
Annual interest rate as of December 31, 2021 (%) |
December 31, 2020 |
December 31, 2021 |
|||||||||||||
Won denominated bonds at amortized cost(*1) |
||||||||||||||||
Publicly issued bonds |
|
W |
||||||||||||||
Privately issued bonds |
|
|||||||||||||||
Less discount on bonds |
( |
) | ( |
) | ||||||||||||
Less current portion |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|||||||||||||
W |
||||||||||||||||
|
|
|
|
|||||||||||||
Foreign currency denominated bonds at amortized cost(*2) |
||||||||||||||||
Publicly issued bonds |
— | W |
||||||||||||||
Privately issued bonds |
||||||||||||||||
Foreign currency equivalent |
USD | USD | ||||||||||||||
Less discount on bonds |
( |
) | ( |
) | ||||||||||||
Less current portion |
( |
) | — | |||||||||||||
|
|
|
|
|||||||||||||
W |
||||||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Foreign currency denominated convertible bonds(*3) |
W |
|||||||||||||||
Foreign currency equivalent |
USD | USD | ||||||||||||||
Less current portion |
— | ( |
) | |||||||||||||
|
|
|
|
|||||||||||||
W |
— | |||||||||||||||
|
|
|
|
|||||||||||||
W |
||||||||||||||||
|
|
|
|
(*1) | Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly. |
(*2) | Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly or semi-annually. |
(*3) | Reclassified to current considering the bondholders’ right to redeem before maturity (put option). |
11. | Financial Liabilities, Continued |
(f) | Details of the convertible bonds issued by the Controlling Company and outstanding as of December 31, 2021 are as follows: |
(In won, USD) | ||||
Description | ||||
Type | Unsecured foreign currency denominated convertible bonds | |||
Issuance amount | USD | |||
Annual interest rate (%) | ||||
Issuance date | ||||
Maturity date | ||||
Interest payment | ||||
Principal redemption | 1. :Redeemed on the maturity date, at their outstanding principal amount, which has not been early redeemed or converted. | |||
2. Early redemption: The Controlling Company has a right to redeem before maturity (call option) or the bondholders have a right to require the Controlling Company to redeem before maturity (put option). At exercise of each option, the outstanding principal amount together with accrued but unpaid interest are to be redeemed. | ||||
Conversion price | W 19,845 per common share (subject to adjustment based on diluted of certain events) | |||
Conversion period | ||||
Redemption at the option of the issuer (Call option) | • On or at any time after 3 years from the issuance, if the closing price of the shares for any 20 trading days out of the 30 consecutive trading days is at least 130% of the applicable conversion price • The aggregate principal amount of the convertible bonds outstanding is less than 10% of the aggregate principal amount originally issued, or • In the event of certain changes in laws and other directives resulting in additional taxes for the holders | |||
Redemption at the option of the bondholders (Put option) |
(In won and No. of shares) |
||||
December 31, 2021 |
||||
Aggregate outstanding amount of the convertible bonds |
W |
|||
Conversion price |
W |
|||
Number of common shares to be issued at conversion |
12. | Employee Benefits |
(a) | Net defined benefit liabilities (defined benefit assets) recognized as of December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Present value of partially funded defined benefit obligations |
W |
|||||||
Fair value of plan assets |
( |
) | ( |
) | ||||
|
|
|
|
|||||
W |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Defined benefit liabilities, net |
W |
|||||||
Defined benefit assets, net |
W |
(b) | Changes in the present value of the defined benefit obligations for the years ended December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
2020 |
2021 |
|||||||
Defined benefit obligations at January 1 |
W |
|||||||
Current service cost |
||||||||
Interest cost |
||||||||
Remeasurements (before tax) |
( |
) | ||||||
Benefit payments |
( |
) | ( |
) | ||||
Net transfers from (to) related parties |
( |
) | ( |
) | ||||
Others |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Defined benefit obligations at December 31 |
W |
|||||||
|
|
|
|
(c) | Changes in fair value of plan assets for the years ended December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
2020 |
2021 |
|||||||
Fair value of plan assets at January 1 |
W |
|||||||
Expected return on plan assets |
||||||||
Remeasurements (before tax) |
( |
) | ( |
) | ||||
Contributions by employer directly to plan assets |
||||||||
Benefit payments |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Fair value of plan assets at December 31 |
W |
|||||||
|
|
|
|
12. | Employee Benefits, Continued |
(d) | Plan assets as of December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Guaranteed deposits in banks |
W |
(e) | Expenses rel recognized in profit or loss for the years ended December 31, 2019, 2020 and 2021 are as follows: ated to defined benefit plans |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Current service cost |
W |
|||||||||||
Past service cost |
( |
) | — | — | ||||||||
Net interest cost |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Cost of sales |
W |
|||||||||||
Selling expenses |
||||||||||||
Administrative expenses |
||||||||||||
Research and development expenses |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(f) | Remeasurements of net defined benefit liabilities (assets) included in other comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
2019 |
2020 |
2021 |
|||||||||
Balance at January 1 |
W |
( |
) | ( |
) | |||||||
Remeasurements |
||||||||||||
Actuarial profit or loss arising from: |
||||||||||||
Experience adjustment |
( |
) | ||||||||||
Demographic assumptions |
( |
) | ( |
) | ( |
) | ||||||
Financial assumptions |
( |
) | ||||||||||
Return on plan assets |
( |
) | ( |
) | ( |
) | ||||||
Group’s share of associates regarding remeasurements |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
W |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Income tax |
W |
( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Balance at December 31 |
W |
( |
) | ( |
) | |||||||
|
|
|
|
|
|
12. | Employee Benefits, Continued |
(g) | Principal actuarial assumptions as of December 31, 2020 and 2021 (expressed as weighted averages) are as follows: |
December 31, 2020 |
December 31, 2021 |
|||||||
Expected rate of salary increase |
% | % | ||||||
Discount rate for defined benefit obligations |
% | % |
December 31, 2020 |
December 31, 2021 |
|||||||||
Teens |
Males | % | % | |||||||
Females | % | % | ||||||||
Twenties |
Males | % | % | |||||||
Females | % | % | ||||||||
Thirties |
Males | % | % | |||||||
Females | % | % | ||||||||
Forties |
Males | % | % | |||||||
Females | % | % | ||||||||
Fifties |
Males | % | % | |||||||
Females | % | % |
(h) | Reasonably possible changes to respective relevant actuarial assumptions would have affected the defined benefit obligations by the following amounts as of December 31, 2021: |
(In millions of won) |
Defined benefit obligations |
|||||||
1% increase |
1% decrease |
|||||||
Discount rate for defined benefit obligations |
W |
( |
) | |||||
Expected rate of salary increase |
( |
) |
13. | Provisions |
(a) | Changes in provisions for the year ended December 31, 2020 are as follows: |
(In millions of won) |
||||||||||||
Warranties(*) |
Others |
Total |
||||||||||
Balance at January 1, 2020 |
W |
|||||||||||
Additions (reversal) |
( |
) | ||||||||||
Usage |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2020 |
W |
|||||||||||
|
|
|
|
|
|
|||||||
Current |
W |
|||||||||||
Non-current |
W |
— |
(b) | Changes in provisions for the year ended December 31, 2021 are as follows: |
(In millions of won) |
||||||||||||
Warranties(*) |
Others |
Total |
||||||||||
Balance at January 1, 2021 |
W |
|||||||||||
Additions (reversal) |
( |
) | ||||||||||
Usage |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2021 |
W |
|||||||||||
|
|
|
|
|
|
|||||||
Current |
W |
|||||||||||
Non-current |
W |
— |
(*) | Product warranties on defective products are normally applicable for warranty periods from the date of customer’s purchase. The provision is calculated by using historical and anticipated rates of warranty claims, and costs per claim to satisfy the Group’s warranty obligation. |
14. | Contingent Liabilities and Commitments |
(a) | Legal Proceedings |
(b) | Commitments |
14. | Contingent Liabilities and Commitments, Continued |
(In millions of USD and KRW) |
||||||||||||||||||
Classification |
Financial institutions |
Credit limit |
Not yet due |
|||||||||||||||
Contractual amount |
KRW equivalent |
Contractual amount |
KRW equivalent |
|||||||||||||||
Controlling Company |
Shinhan Bank |
KRW USD |
|
|
|
USD |
— |
|
— |
|||||||||
Sumitomo Mitsui Banking Corporation |
USD | — | — | |||||||||||||||
MUFG Bank |
USD | USD | |
|||||||||||||||
BNP Paribas |
USD | USD | ||||||||||||||||
ING Bank |
USD | — | — | |||||||||||||||
USD | USD | |||||||||||||||||
KRW | — | |||||||||||||||||
Subsidiaries |
||||||||||||||||||
LG Display Singapore Pte. Ltd. |
Standard Chartered Bank |
USD | USD | |||||||||||||||
United Overseas Bank Limited |
USD | USD | ||||||||||||||||
JPMorgan Chase Bank, N.A., Singapore Branch |
USD | — | — | |||||||||||||||
LG Display Taiwan Co., Ltd. |
BNP Paribas |
USD | — | — | ||||||||||||||
Australia and New Zealand Banking Group Ltd. |
USD | USD | ||||||||||||||||
KGI Bank Co., Ltd. |
USD | — | — | |||||||||||||||
LG Display Germany GmbH |
BNP Paribas |
USD | USD | |||||||||||||||
Commerzbank AG |
USD | USD | ||||||||||||||||
DZ Bank AG |
USD | USD | ||||||||||||||||
UniCredit Bank |
USD | USD | ||||||||||||||||
LG Display America, Inc. |
Hong Kong & Shanghai Banking Corp. |
USD | USD | |||||||||||||||
Standard Chartered Bank |
USD | USD | ||||||||||||||||
Sumitomo Mitsui Banking Corporation |
USD | USD | ||||||||||||||||
LG Display Japan Co., Ltd. |
Chelsea Capital Corporation Tokyo Branch |
USD | — | — | ||||||||||||||
LG Display Guangzhou Trading Co., Ltd. |
KEB Hana Bank (China) Company Limited |
USD | — | — | ||||||||||||||
USD | USD | |||||||||||||||||
USD | USD | |||||||||||||||||
KRW | — | |||||||||||||||||
14. | Contingent Liabilities and Commitments, Continued |
(In millions of won and USD ) |
||||||||
Contractual amount |
KRW equivalent |
|||||||
KEB Hana Bank |
USD | W |
||||||
Sumitomo Mitsui Banking Corporation |
USD | |||||||
Industrial Bank of Korea |
USD | |||||||
Industrial and Commercial Bank of China |
USD | |||||||
Shinhan Bank |
USD | |||||||
KB Kookmin Bank |
USD | |||||||
MUFG Bank |
USD | |||||||
The Export–Import Bank of Korea |
USD | |||||||
Standard Chartered Bank |
USD | |||||||
USD |
W |
|||||||
15. |
Share Capital, Share Premium and Reserves |
(a) |
Share capital and Share p remium |
(b) | Reserves |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Loss on valuation of derivatives |
W |
( |
) | |||||
Foreign currency translation differences for foreign operations |
( |
) | ||||||
Other comprehensive loss from associates |
( |
) | ( |
) | ||||
W |
( |
) | ||||||
15. |
Share Capital, Share Premium and Reserves, Continued |
(In millions of won) |
||||||||||||||||
Loss on valuation of derivatives |
Foreign currency translation differences for foreign operations |
Other comprehensive income (loss) from associates (excluding remeasurements) |
Total |
|||||||||||||
January 1, 2019 |
W |
— | ( |
) | ( |
) | ( |
) | ||||||||
Change in reserves |
— | |||||||||||||||
December 31, 2019 |
— | ( |
) | ( |
) | ( |
) | |||||||||
January 1, 2020 |
— | ( |
) | ( |
) | ( |
) | |||||||||
Change in reserves |
— | ( |
) | |||||||||||||
December 31, 2020 |
— | ( |
) | ( |
) | ( |
) | |||||||||
January 1, 2021 |
— | ( |
) | ( |
) | ( |
) | |||||||||
Change in reserves |
( |
) | ( |
|||||||||||||
December 31, 2021 |
W |
( |
) | ( |
) | |||||||||||
(c) |
Dividend |
16. | Geographic and Other Information |
(a) | Revenue by geography |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Domestic |
W |
|||||||||||
Foreign |
||||||||||||
China |
||||||||||||
Asia (excluding China) |
||||||||||||
United States |
||||||||||||
Europe (excluding Poland) |
||||||||||||
Poland |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(b) | Non-current assets by geography |
(In millions of won) |
||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
Property, plant and equipment |
Intangible assets |
Property, plant and equipment |
Intangible assets |
|||||||||||||
Domestic |
W |
|||||||||||||||
Foreign |
||||||||||||||||
China |
||||||||||||||||
Vietnam |
||||||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
W |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
W |
||||||||||||||||
|
|
|
|
|
|
|
|
(c) | Revenue by product and services |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
TV |
W |
|||||||||||
IT(*) |
||||||||||||
Mobile and others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(*) |
IT consists of Monitor, Notebook and Tablet products and revenue by products and services for the years ended December 31, 2019 are reclassified to conform to the classification for the year ended December 31, 2021. |
17. | The Nature of Expenses and Others |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Changes in inventories |
W |
( |
) | ( |
) | |||||||
Purchases of raw materials, merchandise and others |
||||||||||||
Depreciation and amortization |
||||||||||||
Outsourcing |
||||||||||||
Labor |
||||||||||||
Supplies and others |
||||||||||||
Utility |
||||||||||||
Fees and commissions |
||||||||||||
Shipping |
||||||||||||
Advertising |
||||||||||||
Warranty |
||||||||||||
Travel |
||||||||||||
Taxes and dues |
||||||||||||
Impairment loss on property, plant, and equipment |
||||||||||||
Impairment loss on intangible assets |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
18. | Selling and Administrative Expenses |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Salaries(*) |
W |
|||||||||||
Expenses related to defined benefit plans |
||||||||||||
Other employee benefits |
||||||||||||
Shipping |
||||||||||||
Fees and commissions |
||||||||||||
Depreciation |
||||||||||||
Taxes and dues |
||||||||||||
Advertising |
||||||||||||
Warranty |
||||||||||||
Insurance |
||||||||||||
Travel |
||||||||||||
Training |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(*) | Expenses recognized in relation to employee termination benefits for the years ended December 31, 2019, 2020 and 2021 amount to W W W |
19. | Personnel Expenses |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Salaries and wages |
W |
|||||||||||
Other employee benefits |
||||||||||||
Contributions to National Pension plan |
||||||||||||
Expenses related to defined benefit plans and defined contribution plans |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
20. | Other Income and Other Expenses |
(a) | Details of other income for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Foreign currency gain |
W |
|||||||||||
Gain on disposal of property, plant and equipment |
||||||||||||
Gain on disposal of intangible assets |
||||||||||||
Reversal of impairment loss on property, plant and equipment |
— | — | ||||||||||
Reversal of impairment loss on intangible assets |
||||||||||||
Rental income |
||||||||||||
Gain on disposal of non-current assets held for sales |
— | — | ||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
(b) | Details of other expenses for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Foreign currency loss |
W |
|||||||||||
Other bad debt expenses |
— | — | ||||||||||
Loss on disposal of property, plant and equipment |
||||||||||||
Impairment loss on property, plant and equipment |
||||||||||||
Loss on disposal of intangible assets |
— | |||||||||||
Impairment loss on intangible assets |
||||||||||||
Donations |
||||||||||||
Loss on liquidation of investments in subsidiaries |
— | — | ||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
21. | Finance Income and Finance Costs |
(a) | Finance income and costs recognized in profit or loss for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Finance income |
||||||||||||
Interest income |
W |
|||||||||||
Foreign currency gain |
||||||||||||
Gain on disposal of investments in equity accounted investees |
— | — | ||||||||||
Reversal of impairment loss on investments in equity accounted investees |
||||||||||||
Gain on transaction of derivatives |
||||||||||||
Gain on valuation of derivatives |
— | |||||||||||
Gain on disposal of financial assets at fair value through profit or loss |
— | — | ||||||||||
Gain on valuation of financial assets at fair value through profit or loss |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
|||||||
Finance costs |
||||||||||||
Interest expense |
W |
|||||||||||
Foreign currency loss |
||||||||||||
Impairment loss on investments in equity accounted investees |
||||||||||||
Loss on repayment of borrowings |
— | |||||||||||
Loss on sale of trade accounts and notes receivable |
||||||||||||
Loss on transaction of derivatives |
— | |||||||||||
Loss on valuation of derivatives |
||||||||||||
Loss on valuation of financial assets at fair value through profit or loss |
||||||||||||
Loss on valuation of financial liabilities at fair value through profit or loss |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
22. | Income Tax Expense (Benefit) |
(a) | |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Current tax expense (benefit) |
||||||||||||
Current year |
W |
|||||||||||
Adjustment for prior years(*1) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
W |
||||||||||||
|
|
|
|
|
|
|||||||
Deferred tax expense (benefit) |
||||||||||||
Origination and reversal of temporary differences and others |
W |
( |
) | ( |
) | |||||||
Change in unrecognized deferred tax assets(*2) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
W |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Income tax expense (benefit) |
W |
( |
) | ( |
) | |||||||
|
|
|
|
|
|
(*1) |
Consist of taxable income adjustments related to the transfer price investigation and others and significant portion of such amounts were adjusted in deferred tax expense (see Note 22(d)). |
(*2) |
Change in unrecognized deferred tax assets consist of tax effect from recognizing previously unrecognized deferred tax assets in relation to tax credit carryforwards. |
22. | Income Tax Expense (Benefit), Continued |
(b) | |
(In millions of won) |
||||||||||||
2019 |
||||||||||||
Before tax |
Tax expense |
Net of tax |
||||||||||
Remeasurements of net defined benefit liabilities (assets) |
W |
|
( |
) | ||||||||
Foreign currency translation differences for foreign operations |
— | |||||||||||
Change in equity of equity method investee |
— | |||||||||||
|
|
|
|
|
|
|||||||
W |
( |
) | |
|||||||||
|
|
|
|
|
|
(In millions of won) |
||||||||||||
2020 |
||||||||||||
Before tax |
Tax expense |
Net of tax |
||||||||||
Remeasurements of net defined benefit liabilities (assets) |
W |
|
( |
) | ||||||||
Foreign currency translation differences for foreign operations |
— | |||||||||||
Change in equity of equity method investee |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
W |
( |
) | |
|||||||||
|
|
|
|
|
|
(In millions of won) |
||||||||||||
2021 |
||||||||||||
Before tax |
Tax benefit (expense) |
Net of tax |
||||||||||
Remeasurements of net defined benefit liabilities (assets) |
W |
( |
) | ( |
) | |||||||
Gain (loss) on valuation of derivatives |
( |
) | ( |
) | ||||||||
Foreign currency translation differences for foreign operations |
( |
) | ||||||||||
Change in equity of equity method investee |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
W |
|
|||||||||||
|
|
|
|
|
|
22. | Income Tax Expense (Benefit), Continued |
(c) | |
(In millions of won) |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Profit (loss) for the year |
( |
) | ( |
) | ||||||||||||||||||||
Income tax expense (benefit) |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Profit (loss) before income tax |
W |
( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income tax expense (benefit) using the statutory tax rate of each country |
% | ( |
) | % | ( |
) | % | |||||||||||||||||
Non-deductible expenses |
( |
%) | ( |
%) | % | |||||||||||||||||||
Tax credits |
% | ( |
) | % | ( |
) | ( |
%) | ( |
) | ||||||||||||||
Change in unrecognized deferred tax assets(*1) |
( |
%) | % | ( |
) | ( |
%) | ( |
) | |||||||||||||||
Adjustment for prior years(*2) |
% | ( |
) | % | ( |
) | ( |
%) | ( |
) | ||||||||||||||
Effect on change in tax rate |
( |
%) | ( |
%) | ( |
%) | ( |
) | ||||||||||||||||
Others |
( |
%) | ( |
%) | ( |
%) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Income tax expense (benefit) |
W |
( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Effective tax rate |
(*3 | ) | (*3 | ) | % |
(*1) |
Change in unrecognized deferred tax assets consist of tax effect from recognizing previously unrecognized deferred tax assets in relation to tax credit carryforwards. |
(*2) |
Adjustment for prior years in 2021 consist of expected amount adjusted for transfer price investigation for prior periods and others. |
(*3) |
Actual effective tax rate is not calculated due to income tax benefit. |
(d) |
Tax uncertainties |
23. | Deferred Tax Assets and Liabilities |
(a) | Unrecognized deferred tax liabilities |
(b) | Unused tax credit carryforwards for which no deferred tax asset is recognized |
(In millions of won) |
||||||||||||||||||||||||||||
Total |
December 31, 2026 |
December 31, 2027 |
December 31, 2028 |
December 31, 2029 |
December 31, 2030 |
December 31, 2031 |
||||||||||||||||||||||
Tax credit carryforwards |
W |
23. | Deferred Tax Assets and Liabilities, Continued |
(c) | Deferred tax assets and liabilities are attributable to the following: |
(In millions of won) |
Assets |
Liabilities |
Total |
|||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||
Other accounts receivable, net |
W |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
Inventories, net |
— | — | ||||||||||||||||||||||
Defined benefit liabilities, net |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Investments in subsidiaries and associates |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Accrued expenses |
— | — | ||||||||||||||||||||||
Property, plant and equipment |
( |
) | ( |
) | ||||||||||||||||||||
Intangible assets |
( |
) | ( |
) | ||||||||||||||||||||
Provisions |
— | — | ||||||||||||||||||||||
Other temporary differences |
( |
) | ( |
) | ||||||||||||||||||||
Tax loss carryforwards |
— | — | ||||||||||||||||||||||
Tax credit carryforwards |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax assets (liabilities) |
W |
( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(d) | Changes in deferred tax assets and liabilities for the years ended December 31, 2020 and 2021 are as follows: |
(In millions of won) |
January 1, 2020 |
Profit or loss |
Other comprehensive loss |
December 31, 2020 |
Profit or loss |
Other comprehensive income(loss) |
December 31, 2021 |
|||||||||||||||||||||
Other accounts receivable, net |
W |
( |
) | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||
Inventories, net |
( |
) | — | — | ||||||||||||||||||||||||
Defined benefit liabilities, net |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||
Subsidiaries and associates |
( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Accrued expenses |
( |
) | — | — | ||||||||||||||||||||||||
Property, plant and equipment |
( |
) | — | ( |
) | — | ||||||||||||||||||||||
Intangible assets |
— | ( |
) | — | ||||||||||||||||||||||||
Provisions |
— | — | ||||||||||||||||||||||||||
Other temporary differences |
— | ( |
) | |||||||||||||||||||||||||
Tax loss carryforwards |
— | — | ||||||||||||||||||||||||||
Tax credit carryforwards |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deferred tax assets (liabilities) |
W |
( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24. | Earnings ( L oss) p er Share Attributable to Owners of the Controlling Company |
(a) |
(In won and number of shares) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Profit (loss) attributable to owners of the Controlling Company for the year |
W |
( |
) | ( |
) | |||||||
Weighted-average number of common stocks outstanding |
||||||||||||
Basic earnings (loss) per share |
W |
( |
) | ( |
) | |||||||
(b) |
(In won and number of shares) |
||||
2021 |
||||
Profit attributable to owners of the Controlling Company |
W |
|||
Adjustments: Interest expenses of convertible bond, net of income tax |
||||
Loss on fair value valuation of convertible bond, net of income tax |
||||
Diluted profit attributable to owners of the Controlling Company |
||||
Weighted-average number of common stocks outstanding, after adjustment |
||||
Diluted earnings per share |
W |
|||
(Number of shares) |
||||
2021 |
||||
Weighted-average number of common stocks outstanding |
||||
Adjustment : Number of common stocks to be issued from conversion |
||||
Weighted-average number of common stocks outstanding, after adjustment |
||||
25. | Financial Risk Management |
(a) | Market risk |
(i) | Currency risk |
25. | Financial Risk Management, Continued |
i) | Exposure to currency risk |
(In millions) |
December 31, 2020 |
|||||||||||||||||||||||||||||||
USD |
JPY |
CNY |
TWD |
EUR |
PLN |
VND |
GBP |
|||||||||||||||||||||||||
Cash and cash equivalents |
— | |||||||||||||||||||||||||||||||
Trade accounts and notes receivable |
— | — | — | — | — | |||||||||||||||||||||||||||
Other accounts receivables |
— | — | ||||||||||||||||||||||||||||||
Other assets denominated in foreign currencies |
— | — | — | |||||||||||||||||||||||||||||
Trade accounts and notes payable |
( |
) | ( |
) | ( |
) | — | — | — | ( |
) | — | ||||||||||||||||||||
Other accounts payable |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||
Financial liabilities |
( |
) | — | ( |
) | — | — | — | — | — | ||||||||||||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Cross currency interest rate swap contracts |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Net exposure |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
(In millions) |
December 31, 2021 |
|||||||||||||||||||||||||||||||
USD |
JPY |
CNY |
TWD |
EUR |
PLN |
VND |
GBP |
|||||||||||||||||||||||||
Cash and cash equivalents |
— | |||||||||||||||||||||||||||||||
Deposits in banks |
— | — | — | — | — | — | ———— — |
|||||||||||||||||||||||||
Trade accounts and notes receivable |
— | — | — | — | — | |||||||||||||||||||||||||||
Other accounts receivables |
— | — | — | |||||||||||||||||||||||||||||
Other assets denominated in foreign currencies |
— | — | — | — | ||||||||||||||||||||||||||||
Trade accounts and notes payable |
( |
) | ( |
) | ( |
) | — | — | — | ( |
) | — | ||||||||||||||||||||
Other accounts payable |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | — | ||||||||||||||||||
Financial liabilities |
( |
) | — | ( |
) | — | — | — | — | — | ||||||||||||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ||||||||||||||||||||||
Cross currency interest rate swap contracts(*) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
Net exposure |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||
(*) |
Of cross currency interest rate swap contracts, USD |
25. | Financial Risk Management, Continued |
(In won) |
||||||||||||||||||||
Average rate (year-to-date) |
Reporting date spot rate |
|||||||||||||||||||
2019 |
2020 |
2021 |
December 31, 2020 |
December 31, 2021 |
||||||||||||||||
USD |
W |
|||||||||||||||||||
JPY |
||||||||||||||||||||
CNY |
||||||||||||||||||||
TWD |
||||||||||||||||||||
EUR |
||||||||||||||||||||
PLN |
||||||||||||||||||||
VND |
||||||||||||||||||||
GBP |
ii) | Sensitivity analysis |
(In millions of won) |
||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
Equity |
Profit or loss |
Equity |
Profit or loss |
|||||||||||||
USD (5 percent weakening) |
W |
( |
) | |||||||||||||
JPY (5 percent weakening) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
CNY (5 percent weakening) |
( |
) | ( |
) | ||||||||||||
TWD (5 percent weakening) |
||||||||||||||||
EUR (5 percent weakening) |
( |
) | ||||||||||||||
PLN (5 percent weakening) |
||||||||||||||||
VND (5 percent weakening) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
GBP (5 percent weakening) |
( |
) | ( |
) |
25. | Financial Risk Management, Continued |
iii) | Derivatives for cash flow hedge |
(ii) | Interest rate risk |
i) | Profile |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Fixed rate instruments |
||||||||
Financial assets |
W |
|||||||
Financial liabilities |
( |
) | ( |
) | ||||
W |
( |
) | ( |
) | ||||
Variable rate instruments |
||||||||
Financial liabilities |
W |
( |
) | ( |
) |
ii) | Equity and profit or loss sensitivity analysis for variable rate instruments |
(In millions of won) |
||||||||||||||||
Equity |
Profit or loss |
|||||||||||||||
increase |
decrease |
increase |
decrease |
|||||||||||||
December 31, 2020 |
||||||||||||||||
Variable rate instruments(*) |
W |
( |
) | ( |
) | |||||||||||
December 31, 2021 |
||||||||||||||||
Variable rate instruments(*) |
W |
( |
) | ( |
) |
(*) |
Financial instruments related to non-hedging interest rate swap are excluded from the calculation. |
25. | Financial Risk Management, Continued |
(iii) | Managing interest rate benchmark reform and associated risks |
(In millions of won) |
||||||||
Total amount of not transitioned contracts |
Amount with appropriate fallback clause |
|||||||
Non-derivative financial liabilities |
||||||||
Borrowings |
W |
|||||||
Derivative assets |
||||||||
Cross currency interest rate swap contracts |
W |
|||||||
Derivative liabilities |
||||||||
Cross currency interest rate swap contracts |
W |
25. | Financial Risk Management, Continued |
(b) | Credit risk |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Financial assets carried at amortized cost |
||||||||
Cash |
W |
|||||||
Deposits in banks |
||||||||
Trade accounts and notes receivable, net |
||||||||
Non-trade receivables |
||||||||
Accrued income |
||||||||
Deposits |
||||||||
Short-term loans |
||||||||
Long-term loans |
||||||||
Long-term non-trade receivables |
||||||||
Lease receivables |
||||||||
|
|
|
|
|||||
W |
||||||||
|
|
|
|
|||||
Financial assets at fair value through profit or loss |
||||||||
Convertible securities |
W |
|||||||
Derivatives |
||||||||
|
|
|
|
|||||
W |
||||||||
|
|
|
|
|||||
Financial assets effective for cash flow hedging |
||||||||
Derivatives |
W |
|||||||
|
|
|
|
|||||
Financial assets at fair value through other comprehensive income |
||||||||
Debt instruments |
W |
|||||||
|
|
|
|
|||||
W |
||||||||
|
|
|
|
25. | Financial Risk Management, Continued |
(c) | Liquidity risk |
(In millions of won) |
||||||||||||||||||||||||||||
Contractual cash flows in |
||||||||||||||||||||||||||||
Carrying amount |
Total |
6 months or less |
6-12 months |
1-2 years |
2-5 years |
More than 5 years |
||||||||||||||||||||||
Non-derivative financial liabilities |
||||||||||||||||||||||||||||
Borrowings |
W |
|||||||||||||||||||||||||||
Bonds |
||||||||||||||||||||||||||||
Trade accounts and notes payable |
— | — | — | |||||||||||||||||||||||||
Other accounts payable |
— | — | — | |||||||||||||||||||||||||
Other accounts payable (enterprise procurement cards ) (*) |
— | — | — | |||||||||||||||||||||||||
Long-term other accounts payable |
— | — | ||||||||||||||||||||||||||
Security deposits received |
— | |||||||||||||||||||||||||||
Lease liabilities |
||||||||||||||||||||||||||||
Derivative financial liabilities |
||||||||||||||||||||||||||||
Derivatives |
W |
— | ||||||||||||||||||||||||||
Derivatives for cash flow hedge |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
W |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25. | Financial Risk Management, Continued |
(*) | Represents liabilities payable to credit card companies for utility expenses and others paid using enterprise procurement cards. The Group presented the payable to credit card companies as other accounts payable and disclosed related cash flows as operating activities since the Group is using the enterprise procurement cards through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no security is provided. |
(In millions of won) |
||||||||||||
January 1, 2021 |
Change (Cash flows from operation activities) |
December 31, 2021 |
||||||||||
Other accounts payable (enterprise procurement cards) |
W |
( |
) |
(d) | Capital management |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
Total liabilities |
W |
|||||||
Total equity |
||||||||
Cash and deposits in banks(*1) |
||||||||
Borrowings (including bonds) |
||||||||
Total liabilities to equity ratio |
% | % | ||||||
Net borrowings to equity ratio(*2) |
% | % |
(*1) | Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks. |
(*2) | Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity. |
25. | Financial Risk Management, Continued |
(e) | Determination of fair value |
(i) | Measurement of fair value |
i) | Current assets and liabilities |
ii) | Trade receivables and other receivables |
iii) |
Investments in equity and debt securities |
iv) | Non-derivative financial liabilities |
v) | Derivatives |
25. | Financial Risk Management, Continued |
(ii) | Fair values versus carrying amounts |
(In millions of won) |
||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||
Carrying amounts |
Fair values |
Carrying amounts |
Fair values |
|||||||||||||
Financial assets carried at amortized cost |
||||||||||||||||
Cash and cash equivalents |
W |
(*) | (*) | |||||||||||||
Deposits in banks |
(*) | (*) | ||||||||||||||
Trade accounts and notes receivable |
(*) | (*) | ||||||||||||||
Non-trade receivables |
(*) | (*) | ||||||||||||||
Accrued income |
(*) | (*) | ||||||||||||||
Deposits |
(*) | (*) | ||||||||||||||
Short-term loans |
(*) | (*) | ||||||||||||||
Long-term loans |
(*) | (*) | ||||||||||||||
Long-term non-trade receivables |
(*) | (*) | ||||||||||||||
Lease receivables |
(*) | (*) | ||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Equity instruments |
W |
|||||||||||||||
Convertible securities |
||||||||||||||||
Derivatives |
||||||||||||||||
Financial assets effective for cash flow hedging |
||||||||||||||||
Derivatives |
W |
— | — | |||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Debt instruments |
W |
|||||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Derivatives |
W |
|||||||||||||||
Convertible bonds |
||||||||||||||||
Financial liabilities effective for cash flow hedging |
||||||||||||||||
Derivatives |
— | — | ||||||||||||||
Financial liabilities carried at amortized cost |
||||||||||||||||
Borrowings |
W |
|||||||||||||||
Bonds |
||||||||||||||||
Trade accounts and notes payable |
(*) | (*) | ||||||||||||||
Other accounts payable |
(*) | (*) | ||||||||||||||
Long-term other accounts payable |
(*) | (*) | ||||||||||||||
Security deposits received |
(*) | (*) | ||||||||||||||
Lease liabilities |
(*) | (*) |
(*) | Excluded from disclosures as the carrying amount approximates fair value. |
. |
25. |
Financial Risk Management, Continued |
(iii) | Fair values of financial assets and liabilities |
i) | Fair value hierarchy |
• | 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 or indirectly |
• | Level 3: inputs for the asset or liability that are not based on observable market data |
ii) | Financial instruments measured at fair value |
(In millions of won) |
||||||||||||||||
December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Equity instruments |
W |
— | — | |||||||||||||
Convertible securities |
— | — | ||||||||||||||
Derivatives |
— | |||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Debt instruments |
W |
— | — | |||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Derivatives |
W |
— | — | |||||||||||||
Convertible bonds |
— | — |
(In millions of won) |
||||||||||||||||
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Equity instruments |
W |
— | — | |||||||||||||
Convertible securities |
— | — | ||||||||||||||
Derivatives |
— | |||||||||||||||
Financial assets effective for cash flow hedging |
||||||||||||||||
Derivatives |
W |
— | — | |||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Debt instruments |
W |
— | — | |||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Derivatives |
W |
— | ||||||||||||||
Convertible bonds |
— | — | ||||||||||||||
Financial liabilities effective for cash flow hedging |
||||||||||||||||
Derivatives |
W |
— | — |
25. | Financial Risk Management, Continued |
iii) | Financial instruments not measured at fair value but for which the fair value is disclosed |
(In millions of won) |
December 31, 2020 |
Valuation technique |
Input |
|||||||||||||||||
Classification |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||
Liabilities |
||||||||||||||||||||
Borrowings |
W |
— | — | | ||||||||||||||||
Bonds |
— | — | |
|
(In millions of won) |
December 31, 2021 |
Valuation technique |
Input |
|||||||||||||||||
Classification |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||
Liabilities |
||||||||||||||||||||
Borrowings |
W |
— | — | |
| |||||||||||||||
Bonds |
— | — | |
|
iv) | The interest rates applied for determination of the above fair value as of December 31, 2020 and 2021 are as follows: |
December 31, 2020 |
December 31, 2021 |
|||||||
Borrowings, bonds and others |
% | % |
26. | Leases |
(a) | Leases as lessee |
(i) | Right-of-use |
(In millions of won) |
||||||||||||||||||||||||
2020 |
||||||||||||||||||||||||
Buildings and structures |
Land |
Machinery and equipment |
Vehicles |
Others |
Total |
|||||||||||||||||||
Balance at January 1, 2020 |
W |
|||||||||||||||||||||||
Additions and others |
||||||||||||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Gain or loss on foreign currency translation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2020 |
W |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won) |
||||||||||||||||||||||||
2021 |
||||||||||||||||||||||||
Buildings and structures |
Land |
Machinery and equipment |
Vehicles |
Others |
Total |
|||||||||||||||||||
Balance at January 1, 2021 |
W |
|||||||||||||||||||||||
Additions and others |
||||||||||||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Disposals |
( |
) | ( |
) | ||||||||||||||||||||
Gain or loss on foreign currency translation |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2021 |
W |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
26. | Leases, Continued |
(ii) |
Amounts recognized in profit or loss from leases other than leases recorded as right-of-use assets for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Interest on lease liabilities |
W |
( |
) |
|
( |
) | ( |
) | ||||
Income from sub-leasing right-of-use assets |
|
|
|
|
||||||||
Expenses relating to short-term leases |
|
( |
) |
|
( |
) | ( |
) | ||||
Expenses relating to leases of low-value assets |
|
( |
) |
|
( |
) | ( |
) |
(iii) | Changes in lease liabilities for the years ended December 31, 2020 and 2021 are as follows: |
(In millions of won) |
||||||||
2020 |
2021 |
|||||||
Balance at January 1 |
W |
|||||||
Additions and others |
||||||||
Interest expense |
||||||||
Repayment of liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance at December 31 |
W |
|||||||
|
|
|
|
(b) | Leases as lessor |
(In millions of won) |
||||||||
December 31, 2020 |
December 31, 2021 |
|||||||
6 months or less |
W |
|||||||
6-12 months |
||||||||
1-2 years |
||||||||
2-5 years |
||||||||
Total undiscounted lease receivable |
||||||||
Unearned finance income |
( |
) | ( |
) | ||||
Net Investment in the lease |
27. | Changes in liabilities arising from financing activities |
(In millions of won) |
||||||||||||||||||||||||||||
January 1, 2021 |
Non-cash transactions |
|||||||||||||||||||||||||||
Cash flows from financing activities |
Reclassification |
Gain or loss on foreign currency translation |
Effective interest adjustment |
Others |
December 31, 2021 |
|||||||||||||||||||||||
Short-term borrowings |
W |
— | — | — | ||||||||||||||||||||||||
Current portion of long-term borrowings and bonds(*) |
( |
) | ||||||||||||||||||||||||||
Long-term borrowings |
( |
) | — | — | ||||||||||||||||||||||||
Bonds |
( |
) | — | |||||||||||||||||||||||||
Lease liabilities |
( |
) | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
W |
( |
) | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) | Others include W |
28. | Related Parties and Others |
(a) | Related parties |
Classification |
Description | |
Associates(*) | Paju Electric Glass Co., Ltd. and others | |
Entity that has significant influence over the Controlling Company | LG Electronics Inc. | |
Subsidiaries of the entity that has significant influence over the Controlling Company |
Subsidiaries of LG Electronics Inc. |
(*) | Details of associates are described in note 8. |
28. | Related Parties and Others, Continued |
(b) | Significant transactions such as sales of goods and purchases of raw material and outsourcing service and others, which occurred in the normal course of business with related parties for the years ended December 31, 2019, 2020 and 2021 are as follows: |
(In millions of won) |
2019 |
|||||||||||||||||||||||
Sales and others |
Purchase and others |
|||||||||||||||||||||||
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
||||||||||||||||||||
Associates |
||||||||||||||||||||||||
INVENIA Co., Ltd.(*1) |
W |
— | — | |||||||||||||||||||||
AVATEC Co., Ltd. |
— | — | ||||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
— | — | — | |||||||||||||||||||||
WooRee E&L Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
YAS Co., Ltd. |
— | — | ||||||||||||||||||||||
Material Science Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
W |
||||||||||||||||||||||||
Entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics Inc. |
W |
— | — | |||||||||||||||||||||
Subsidiaries of the entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics India Pvt. Ltd. |
W |
— | — | — | — | |||||||||||||||||||
LG Electronics Vietnam Haiphong Co., Ltd. |
— | — | — | |||||||||||||||||||||
LG Electronics Nanjing New Technology Co., Ltd. |
— | — | — | |||||||||||||||||||||
LG Electronics RUS, LLC |
— | — | — | — |
28. | Related Parties and Others, Continued |
(In millions of won) |
2019 |
|||||||||||||||||||||||
Purchase and others |
||||||||||||||||||||||||
Sales and others |
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
|||||||||||||||||||
LG Electronics do Brasil Ltda. |
W |
— | — | — | — | |||||||||||||||||||
LG Innotek Co., Ltd. |
— | — | — | |||||||||||||||||||||
Qingdao LG Inspur Digital Communication Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||
Inspur LG Digital Mobile Communications Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||
LG Electronics Mexicalli, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Mlawa Sp. z o.o. |
— | — | — | — | ||||||||||||||||||||
LG Hitachi Water Solutions Co., Ltd.(*2) |
— | — | — | — | — | |||||||||||||||||||
LG Electronics Reynosa, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Air-Conditioning (Shandong) Co., Ltd. |
— | — | — | |||||||||||||||||||||
HiEntech Co., Ltd.(*2) |
— | — | — | |||||||||||||||||||||
HiEntech (Tianjin) Co., Ltd.(*2) |
— | — | — | — | ||||||||||||||||||||
LG Electronics Egypt S.A.E. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Alabama Inc. |
— | — | — | — | — | |||||||||||||||||||
LG Electronics Japan, Inc. |
— | — | — | — | ||||||||||||||||||||
P.T. LG Electronics Indonesia |
— | — | — | — | ||||||||||||||||||||
Others |
— | — | — | |||||||||||||||||||||
W |
— | — | ||||||||||||||||||||||
W |
||||||||||||||||||||||||
(*1) | Represents transactions occurred prior to the Group’s disposal of the entire investments |
(*2) | Represents transactions occurred prior to LG Electronics Inc.’s disposal of the entire investments. |
28. | Related Parties and Others, Continued |
2020 |
||||||||||||||||||||||||
Sales and others |
Purchase and others |
|||||||||||||||||||||||
(In millions of won) |
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
|||||||||||||||||||
Associates and their subsidiaries |
||||||||||||||||||||||||
AVATEC Co., Ltd. |
W |
— | ||||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
— | — | — | |||||||||||||||||||||
WooRee E&L Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
YAS Co., Ltd. |
— | — | ||||||||||||||||||||||
Material Science Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||
W |
||||||||||||||||||||||||
Entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics Inc. |
W |
— | — | |||||||||||||||||||||
Subsidiaries of the entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics India Pvt. Ltd. |
W |
— | — | — | — | |||||||||||||||||||
LG Electronics Vietnam Haiphong Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Nanjing New Technology Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
LG Electronics RUS, LLC |
— | — | — | — |
28. | Related Parties and Others, Continued |
2020 |
||||||||||||||||||||||||
Purchase and others |
||||||||||||||||||||||||
( In millions of won |
Sales and others |
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
||||||||||||||||||
LG Electronics do Brasil Ltda. |
W |
— | — | — | — | |||||||||||||||||||
LG Innotek Co., Ltd. |
— | — | — | |||||||||||||||||||||
Qingdao LG Inspur Digital Communication Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||
LG Electronics Mexicalli, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Mlawa Sp. z o.o. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Reynosa, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Egypt S.A.E. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Japan, Inc. |
— | — | — | — | ||||||||||||||||||||
P.T. LG Electronics Indonesia |
— | — | — | — | ||||||||||||||||||||
Others |
— | — | — | |||||||||||||||||||||
|
|
|
|
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|
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|
|
|
|
|
|||||||||||||
W |
— | — | ||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||
W |
||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
28. | Related Parties and Others, Continued |
2021 |
||||||||||||||||||||||||
Sales and others |
Purchase and others |
|||||||||||||||||||||||
( In millions of won |
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
|||||||||||||||||||
Associates |
||||||||||||||||||||||||
AVATEC Co., Ltd. |
W |
— | ||||||||||||||||||||||
Paju Electric Glass Co., Ltd. |
— | — | — | |||||||||||||||||||||
WooRee E&L Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
YAS Co., Ltd. |
— | — | ||||||||||||||||||||||
Cynora GmbH |
— | — | — | — | — | |||||||||||||||||||
Material Science Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
|
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|
|
|
|
|||||||||||||
W |
||||||||||||||||||||||||
|
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|
|
|
|
|
|
|||||||||||||
Entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics Inc. |
W |
— | — | |||||||||||||||||||||
Subsidiaries of the entity that has significant influence over the Controlling Company |
||||||||||||||||||||||||
LG Electronics India Pvt. Ltd. |
W |
— | — | — | — | |||||||||||||||||||
LG Electronics Vietnam Haiphong Co., Ltd. |
— | — | — | |||||||||||||||||||||
LG Electronics Nanjing New Technology Co., Ltd. |
— | — | — | |||||||||||||||||||||
LG Electronics RUS, LLC |
— | — | — | — |
28. | Related Parties and Others, Continued |
2021 |
||||||||||||||||||||||||
Sales and others |
Purchase and others |
|||||||||||||||||||||||
( In millions of won |
Dividend income |
Purchase of raw material and others |
Acquisition of property, plant and equipment |
Outsourcing fees |
Other costs |
|||||||||||||||||||
LG Electronics do Brasil Ltda. |
W |
— | — | — | — | |||||||||||||||||||
LG Innotek Co., Ltd. |
— | — | ||||||||||||||||||||||
HI-M Solutek Co., Ltd |
— | — | — | — | ||||||||||||||||||||
LG Electronics Mexicalli, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Mlawa Sp. z o.o. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Reynosa, S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Egypt S.A.E. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Japan, Inc. |
— | — | — | — | ||||||||||||||||||||
P.T. LG Electronics Indonesia |
— | — | — | — | ||||||||||||||||||||
LG Electronics Taiwan Taipei Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
LG Electronics Nanjing Vehicle Components Co.,Ltd. |
— | — | — | — | — | |||||||||||||||||||
LG Technology Ventures LLC |
— | — | — | — | — | |||||||||||||||||||
Others |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
W |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
W |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
28. | Related Parties and Others, Continued |
(c) | Trade accounts and notes receivable and payable as of December 31, 2020 and 2021 are as follows: |
Trade accounts and notes receivable and others |
Trade accounts and notes payable and others |
|||||||||||||||
(In millions of won) |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
||||||||||||
Associates |
||||||||||||||||
AVATEC Co., Ltd. |
— | |||||||||||||||
Paju Electric Glass Co., Ltd. |
— | — | ||||||||||||||
WooRee E&L Co., Ltd. |
— | |||||||||||||||
YAS Co., Ltd. |
— | — | ||||||||||||||
Material Science Co., Ltd. |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
W |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Entity that has significant influence over the Controlling Company |
||||||||||||||||
LG Electronics Inc. |
W |
|||||||||||||||
Subsidiaries of the entity that has significant influence over the Controlling Company |
||||||||||||||||
LG Electronics Vietnam Haiphong Co., Ltd. |
||||||||||||||||
LG Electronics Nanjing New Technology Co., Ltd. |
||||||||||||||||
LG Electronics RUS, LLC |
— | — | ||||||||||||||
LG Electronics do Brasil Ltda. |
||||||||||||||||
LG Innotek Co., Ltd. |
||||||||||||||||
LG Electronics Mexicali, S.A. DE C.V. |
28. | Related Parties and Others, Continued |
Trade accounts and notes receivable and others |
Trade accounts and notes payable and others |
|||||||||||||||
(In millions of won) |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
||||||||||||
LG Electronics Mlawa Sp. z o.o. |
W |
|||||||||||||||
LG Electronics Reynosa, S.A. DE C.V. |
||||||||||||||||
LG Electronics Egypt S.A.E. |
— | — | ||||||||||||||
P.T. LG Electronics Indonesia |
— | |||||||||||||||
HI-M Solutek Co., Ltd. |
— | — | ||||||||||||||
LG Electronics India Pvt. Ltd. |
— | |||||||||||||||
LG Electronics Japan, Inc. |
— | — | ||||||||||||||
LG Electronics Taiwan Taipei Co., Ltd. |
||||||||||||||||
LG Electronics Nanjing Vehicle Components Co., Ltd. |
— | — | ||||||||||||||
LG Technology Ventures LLC |
— | — | ||||||||||||||
Others |
||||||||||||||||
W |
||||||||||||||||
W |
||||||||||||||||
28. | Related Parties and Others, Continued |
(d) | Details of significant financing transactions such as granting and collecting loans, which occurred in the normal course of business with related parties for the year ended December 31, 2021 are as follows. |
(In millions of won) |
||||||||
2021 |
||||||||
Associates |
Loans |
Collection of loans |
||||||
WooRee E&L Co., Ltd. |
W |
28. | Related Parties and Others, Continued |
(e) | Key management personnel compensation |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Short-term benefits |
W |
|||||||||||
Expenses related to the defined benefit plan |
||||||||||||
W |
||||||||||||
29. | Supplemental Cash Flow Information |
(In millions of won) |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Non-cash investing and financing activities: |
||||||||||||
Changes in other accounts payable arising from the purchase of property, plant and equipment |
W |
( |
) | ( |
) | |||||||
Changes in other accounts payable arising from the purchase of intangible assets |
( |
) | ||||||||||
Recognition of right-of-use |