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Derivatives

12 Months Ended

Dec. 31, 2020

Derivatives [Abstract]

Derivatives

12.

Derivatives

(1)

Derivatives as of December 31, 2019 and 2020 are as follows:


		2019				2020
		Current		Non-current		Current		Non-current
		In millions of won
Derivative assets
Currency forward	￦		21		43,931		18,332		—
Currency swap			27,597		229,258		11,193		127,386
—Trading			—		111,026		—		82,931
—Hedging			27,597		118,232		11,193		44,455
Interest rate swap			—		7,592		—		9,502
—Trading			—		7,592		—		9502
—Hedging			—		—		—		—
Others			—		2,634		—		—

	￦		27,618		283,415		29,525		136,888

Derivative liabilities
Currency forward	￦		7,081		—		10,014		4,977
Currency swap			59,327		45,184		36,088		232,669
—Trading			—		13,250		—		93,245
—Hedging			59,327		31,933		36,088		139,424
Interest rate swap			451		50,756		3,782		66,451
—Trading			—		26,610		2,192		22,687
—Hedging			451		24,147		1,590		43,764
Others(*1,2,3)			6,205		956		—		11,138

	￦		73,064		96,896		49,884		315,235

(*1)

The Company has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’.

(*2)

The Company has granted stock option to Chester Solar IV SpA, a joint venture of the Company, and 4 other third party investors, and recognized its fair value as other derivative liabilities.

(*3)

The Company has an obligation to purchase the shares of Hyundai Green Power Co., Ltd., an associate of the Company from financial investors, and the fair value of the obligation is recorded in ‘Others’.

(2)

Currency forward contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:


	Contract date		Maturity date		Contract amounts						Contract exchange rate (in won)
Counterparty	Contract date		Maturity date			Pay		Receive			Contract exchange rate (in won)
	In millions of won and thousands of USD except contract exchange rate information
Hana Bank		2014.04.10		2021.07.12	￦		55,120		USD 52,000	￦		1,060.00
Hana Bank		2014.04.28		2021.07.12			50,784		USD 48,000			1,058.00
Bank of America		2014.04.29		2021.07.12			105,400		USD 100,000			1,054.00
Hana Bank		2014.05.09		2021.07.12			104,600		USD 100,000			1,046.00
Hana Bank		2017.12.22		2021.07.12	￦		105,079		USD 100,000	￦		1,050.79
Korea Development Bank		2017.12.27		2021.07.12			104,849		USD 100,000			1,048.49
Shinhan Bank		2020.11.25		2021.01.29			895		USD 809			1,106.50
Woori Bank		2020.12.28		2021.01.28			53,371		USD 48,790			1,093.88
Shinhan Bank		2020.12.29		2021.01.25			27,776		USD 25,379			1,094.44
Shinhan Bank		2020.10.08		2021.01.04			7,836		USD 6,771			1,157.15
Shinhan Bank		2020.10.08		2021.01.05			7,586		USD 6,552			1,157.75
Shinhan Bank		2020.10.19		2021.01.18			10,498		USD 9,188			1,142.68
Shinhan Bank		2020.10.21		2021.01.19			7,633		USD 6,717			1,136.45
Shinhan Bank		2020.11.05		2021.02.02			6,471		USD 5,729			1,129.45
CCB		2020.11.30		2021.01.05			5,522		USD 5,000			1,104.45
Standard Chartered		2020.12.09		2021.01.14			3,248		USD 3,000			1,082.80
Mizuho Bank		2020.12.14		2021.01.20			2,180		USD 2,000			1,090.05
Hana Bank		2020.12.17		2021.01.25			5,456		USD 5,000			1,091.25
Korea Development Bank		2020.12.18		2021.01.28			5,469		USD 5,000			1,093.75
Woori Bank		2020.12.23		2021.02.02			5,540		USD 5,000			1,107.95
Hana Bank		2020.12.24		2021.02.08			3,303		USD 3,000			1,101.10
Morgan Stanley		2020.12.24		2021.02.09			5,504		USD 5,000			1,100.80
Standard Chartered		2020.12.28		2021.02.10			3,296		USD 3,000			1,098.50
Credit Agricole		2020.12.28		2021.02.15			3,284		USD 3,000			1,094.55
Nonghyup Bank		2020.12.29		2021.02.17			6,572		USD 6,000			1,095.30
Korea Development Bank		2020.12.30		2021.02.19			5,436		USD 5,000			1,087.16
Korea Development Bank		2020.12.15		2021.01.05			1,092		USD 1,000			1,092.10
HSBC		2020.12.23		2021.01.05			3,881		USD 3,500			1,108.85
HSBC		2020.12.24		2021.01.05			3,306		USD 3,000			1,101.95
HSBC		2020.12.24		2021.01.22			1,651		USD 1,500			1,100.80
HSBC		2020.12.29		2021.01.13			14,210		USD 13,000			1,093.10
Korea Development Bank		2020.12.29		2021.01.05			6,791		USD 6,200			1,095.35
Shinhan Bank		2020.12.30		2021.01.22			9,249		USD 8,500			1,088.10
MUFG		2020.12.29		2021.01.12			4,380		USD 4,000			1,095.05
BNP Paribas		2020.12.30		2021.01.19			4,351		USD 4,000			1,087.80
Nova Scotia		2020.09.18		2021.01.12			46,700		USD 40,000			1,167.50
Mizuho Bank		2020.09.18		2021.03.11			15,177		USD 13,000			1,167.45
HSBC		2020.09.18		2021.06.11			31,506		USD 27,000			1,166.90
HSBC		2020.10.19		2024.10.29			140,913		USD 125,000			1,127.30
Woori Bank		2020.12.03		2021.01.08			1,461		USD 1,330			1,098.70
Shinhan Bank		2020.12.04		2021.01.08			9,775		USD 9,000			1,086.15
Credit Agricole		2020.12.10		2021.01.08			3,915		USD 3,600			1,087.45
Standard Chartered		2020.12.17		2021.01.15			4,044		USD 3,700			1,093.10
Hana Bank		2020.12.23		2021.01.21			3,321		USD 3,000			1,107.15
Hana Bank		2020.12.24		2021.01.21			5,504		USD 5,000			1,100.70
Woori Bank		2020.12.28		2021.01.04	￦		19,076		USD 17,400	￦		1,096.30
Standard Chartered		2020.12.28		2021.01.15			6,577		USD 6,000			1,096.20
Shinhan Bank		2020.12.28		2021.01.29			9,870		USD 9,000			1,096.70
Credit Agricole		2020.12.30		2021.01.29			4,915		USD 4,500			1,092.30
Standard Chartered		2020.12.30		2021.01.29			4,344		USD 4,000			1,086.00
Woori Bank		2020.12.30		2021.02.05			8,691		USD 8,000			1,086.40

(3)

Currency swap contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:


Counterparty	Contract year			Contract amount				Contract interest rate					Contract exchange rate (in won)
Counterparty	Contract year			Pay		Receive		Pay	Receive				Contract exchange rate (in won)
	In millions of won and thousands of foreign currencies except contract exchange rate information
Standard Chartered		2014~2029	￦		102,470		USD 100,000	3.14%	3.57%		￦			1,024.70
Societe Generale		2014~2024			105,017		USD 100,000	4.92%	5.13%					1,050.17
Hana Bank		2015~2024			107,970		USD 100,000	4.75%	5.13%					1,079.70
Credit Agricole		2015~2024			94,219		USD 86,920	4.85%	5.13%					1,083.97
Woori Bank		2019~2027			21,708		USD 19,417	5.04%	6.75%					1,118.00
Woori Bank		2019~2024			296,000		USD 250,000	1.21%	2.50%					1,184.00
Korea Development Bank		2019~2024			177,600		USD 150,000	1.24%	2.50%					1,184.00
Hana Bank		2019~2024			118,400		USD 100,000	1.24%	2.50%					1,184.00
Woori Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%					1,206.60
Korea Development Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%					1,206.60
Kookmin Bank		2020~2025			120,660		USD 100,000	0.54%	1.13%					1,206.60
Kookmin Bank		2020~2026			76,355		USD 70,445	5.83%	6.00%					1,083.90
Citibank		2012~2022			112,930		USD 100,000	2.79%	3.00%					1,129.30
JP Morgan		2012~2022			112,930		USD 100,000	2.79%	3.00%					1,129.30
Bank of America		2012~2022			112,930		USD 100,000	2.79%	3.00%					1,129.30
Shinhan Bank		2016~2022			112,930		USD 100,000	2.79%	3.00%					1,129.30
HSBC		2012~2022			111,770		USD 100,000	2.89%	3.00%					1,117.70
Hana Bank		2012~2022			111,770		USD 100,000	2.87%	3.00%					1,117.70
Standard Chartered		2012~2022	￦		111,770		USD 100,000	2.89%		3.00%		￦			1,117.70
Deutsche Bank		2012~2022			55,885		USD 50,000	2.79%		3.00%					1,117.70
Nomura		2015~2025			111,190		USD 100,000	2.60%		3.25%					1,111.90
Korea Development Bank		2015~2025			111,190		USD 100,000	2.62%		3.25%					1,111.90
Woori Bank		2015~2025			55,595		USD 50,000	2.62%		3.25%					1,111.90
Hana Bank		2015~2025			55,595		USD 50,000	2.62%		3.25%					1,111.90
Woori Bank		2017~2027			111,610		USD 100,000	2.25%		3.13%					1,116.10
Korea Development Bank		2017~2027			111,610		USD 100,000	2.31%		3.13%					1,116.10
Hana Bank		2017~2027			111,610		USD 100,000	2.31%		3.13%					1,116.10
Korea Development Bank		2018~2028			108,600		HKD 800,000	2.69%		3.35%					135.75
Shinhan Bank		2018~2028			115,387		HKD 850,000	2.66%		3.35%					135.75
Korea Development Bank		2018~2023			170,280		USD 150,000	2.15%		3.75%					1,135.20
Woori Bank		2018~2023			170,280		USD 150,000	2.18%		3.75%					1,135.20
Hana Bank		2018~2023			113,520		USD 100,000	2.17%		3.75%					1,135.20
Shinhan Bank		2018~2023			227,040		USD 200,000	2.17%		3.75%					1,135.20
Citibank		2019~2024			239,956		CHF 200,000	1.44%		0.00%					1,199.78
Korea Development Bank		2019~2027			119,978		CHF 100,000	1.43%		0.05%					1,199.78
HSBC		2019~2024			USD 205,500		AUD 300,000	3M Libor + 0.78%		3M BBSW + 0.97	%				USD 0.69

(4)

Currency swap contracts which are designated as hedging instruments as of December 31, 2020 are as follows:


Counterparty	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won)
Counterparty	Contract year			Pay		Receive		Pay	Receive		Contract exchange rate (in won)
	In millions of won and thousands of foreign currencies except contract exchange rate information
Kookmin Bank		2020~2025	￦		118,780		USD 100,000	1.29%	2.13%	￦		1,187.80
Shinhan Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Hana Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Korea Development Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Hana Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Woori Bank		2020~2026	￦		118,910		USD 100,000	0.62%	1.00%	￦		1,189.10
Korea Development Bank		2016~2021			121,000		USD 100,000	2.15%	2.50%			1,210.00
Morgan Stanley		2016~2021			121,000		USD 100,000	3M Libor + 2.10%	2.50%			1,210.00
BNP Paribas		2016~2021			121,000		USD 100,000	3M Libor + 2.10%	2.50%			1,210.00
Nomura		2017~2037			52,457		EUR 40,000	2.60%	1.70%			1,311.42
Nomura		2017~2037			59,423		SEK 450,000	2.62%	2.36%			132.05
Korea Development Bank		2019~2022			112,650		USD 100,000	1.80%	3.38%			1,126.50
Kookmin Bank		2019~2022			112,650		USD 100,000	1.80%	3.38%			1,126.50
Woori Bank		2019~2022			112,650		USD 100,000	1.80%	3.38%			1,126.50
Korea Development Bank		2018~2023			320,880		USD 300,000	2.03%	3.75%			1,069.60
BNP Paribas		2019~2024			111,841		CHF 100,000	1.78%	0.13%			1,118.41
Kookmin Bank		2019~2024			111,841		CHF 100,000	1.78%	0.13%			1,118.41
Korea Development Bank		2019~2022			117,340		USD 100,000	1.06%	2.38%			1,173.40
Hana Bank		2019~2022			117,340		USD 100,000	1.06%	2.38%			1,173.40
Kookmin Bank		2019~2022			117,340		USD 100,000	1.06%	2.38%			1,173.40
Hana Bank		2018~2021			212,960		USD 200,000	2.10%	3.00%			1,064.80
Korea Development Bank		2018~2021			212,960		USD 200,000	2.10%	3.00%			1,064.80
Hana Bank		2017~2022			226,600		USD 200,000	1.94%	2.63%			1,133.00
Korea Development Bank		2017~2022			113,300		USD 100,000	1.94%	2.63%			1,133.00
Nomura		2017~2022			113,300		USD 100,000	1.95%	2.63%			1,133.00
Woori Bank		2017~2022			56,650		USD 50,000	1.95%	2.63%			1,133.00
Kookmin Bank		2017~2022			56,650		USD 50,000	1.95%	2.63%			1,133.00
Korea Development Bank		2018~2023			169,335		USD 150,000	2.26%	3.88%			1,128.90
Woori Bank		2018~2023			169,335		USD 150,000	2.26%	3.88%			1,128.90
Credit Agricole		2018~2023			112,890		USD 100,000	2.26%	3.88%			1,128.90
Hana Bank		2018~2023			56,445		USD 50,000	2.26%	3.88%			1,128.90
Kookmin Bank		2018~2023			56,445		USD 50,000	2.26%	3.88%			1,128.90
Woori Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Hana Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Korea Development Bank		2020~2025			122,780		USD 100,000	0.93%	1.75%			1,227.80

(5)

Interest rate swap contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:

Counterparty

Contract
year

Contract amount

Contract interest rate per annum

Pay

Receive

In millions of won

Hana Bank

2017~2022

￦

100,000

2.01%

3M CD + 0.24%

Hana Bank

2017~2022

100,000

2.06%

3M CD + 0.27%

Hana Bank

2017~2021

200,000

2.45%

3M CD + 0.32%

Nomura(*)

2018~2038

30,000

2.56%

3.75%

Hana Bank

2018~2023

200,000

2.15%

3M CD + 0.19%

Hana Bank

2018~2023

200,000

2.17%

3M CD + 0.19%

Hana Bank

2018~2023

150,000

2.03%

3M CD + 0.21%

Hana Bank

2019~2024

200,000

1.87%

3M CD + 0.13%

Societe Generale

2017~2022

200,000

3M Libor + 3.44%

3.77%

Nomura

2017~2032

52,457

3M Libor + 2.22%

2.60%

Nomura

2017~2032

59,423

3M Libor + 2.24%

2.62%

(*)

2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(6)

Interest rate swap contracts which are designated as hedging instruments as of December 31, 2020 are as follows:

Counterparty

Contract
year

Contract
amount

Contract interest rate per annum

Pay

Receive

In thousands
of USD

Export-Import Bankof Korea

2015~2031

USD 15,893

2.67%

6M USD Libor

ING Bank

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2009~2027

USD 69,509

4.16%

6M USD Libor

KFW

2009~2027

USD 69,509

4.16%

6M USD Libor

Export-Import Bankof Korea

2016~2036

USD 75,929

3.00%

6M USD Libor

(7)

Gain and loss on valuation and transaction of derivatives for the years ended December 31, 2018, 2019 and 2020 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):


		Net income effects of valuation gain (loss)									Net income effects of transaction gain (loss)									Other comprehensive *income (loss)()**
		2018			2019			2020			2018			2019			2020			2018			2019			2020
		In millions of won
Currency forward	￦		12,632			24,265			(40,590	)		23,991			12,488			(17,911	)		—			—			—
Currency swap			145,088			310,732			(406,607	)		123,670			110,813			93,557			(12,516	)		38,802			105,642
- Trading			21,702			172,087			(108,090	)		51,533			52,842			16,661			—			—			—
- Hedging			123,386			138,645			(298,517	)		72,137			57,971			76,896			(12,516	)		38,802			105,642
Interest rate swap			(2,949	)		(16,231	)		(1,845	)		(364	)		(36,886	)		(10,253	)		6,087			(3,075	)		5,578
- Trading			(2,949	)		(15,647	)		(309	)		(364	)		(2,495	)		(11,975	)		—			—			—,
- Hedging			—			(584	)		(1,536	)		—			(34,391	)		1,722			6,087			(3,075	)		5,578
Other derivatives			(1,568	)		(1,416	)		(6,673	)		—			—			—			—			—			—

	￦	153,203			317,350			(455,715)			147,297			86,415			65,393			(6,429)			35,727			111,220

(*)

For the year ended December 31, 2020, the net gain on valuation of derivatives designated as cash flow hedge of ￦64,561 million, net of tax, is included in other comprehensive income (loss).