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Finance Lease Liabilities
 12 Months Ended
Dec. 31, 2017
Finance Lease Liabilities [Abstract]  
Finance Lease Liabilities
24. Finance Lease Liabilities

 

(1) Lease contracts

The Company enters into power purchase agreements (“PPA”) with GS EPS and three other providers. The Company recognizes these PPAs as finance leases; under the PPAs, there is no transfer of ownership or bargain purchase option of the plants at the end of the agreement, however, the present value of the future minimum power purchase payments equals substantially all of the plants’ respective fair values over a twenty-year period which makes up the major part of the respective plants’ economic life.

 

(2) Finance lease liabilities as of December 31, 2016 and 2017 are as follows and are included in current and non-current trade and other payables, net, in the consolidated statements of financial position:

 

            2016      2017  
            Minimum lease
payments		      Present value of
minimum lease
payments		      Minimum lease
payments		      Present value of
minimum lease
payments		  
            In millions of won  

Less than 1 year

    ￦        175,512        121,176        174,534        131,792  

1 ~ 5 years

         404,029        306,282        272,994        204,069  

More than 5 years

         152,247        113,721        108,748        82,399  
     

 

 

     

 

 

     

 

 

     

 

 

  
   ￦        731,788        541,179        556,276        418,260  
     

 

 

     

 

 

     

 

 

     

 

 

  

 

(3) Current and non-current portion of financial lease liabilities as of December 31, 2016 and 2017 are as follows:

 

            2016      2017  
            In millions of won  

Current finance lease liabilities

    ￦        121,176        131,792  

Non-current finance lease liabilities

         420,003        286,468  
     

 

 

     

 

 

  
   ￦        541,179        418,260  
     

 

 

     

 

 

  

 

(4) Minimum lease payment and contingent rent payment recognized as an expense as a lessee for the years ended December 31, 2016 and 2017 are as follows:

 

            2016      2017  
            In millions of won  

Minimum lease payment

    ￦        177,585        158,859  

Contingent rent payment

         (20,956 )       (21,024 ) 

 

(5) The Company does not have any irrevocable operating lease contracts as of December 31, 2016 and 2017.

 

(6) Changes in finance lease liabilities for the year ended December 31, 2017 are as follows:

 

Beginning balance

  

Cash flow

  

Ending balance

In millions of won
￦541,179   (122,919)   418,260