XML 41 R29.htm IDEA: XBRL DOCUMENT
v3.22.1

Lease | 12 Months Ended
--- | ---
Dec. 31, 2021
Presentation of leases for lessee [abstract] |
Lease |
24. | Leases
Company as a lessee
(1) | Lease contracts
The Company applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized ￦45,787 million and ￦199,490 million respectively, as expense for the years ended December 31, 2020 and 2021. The Company also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be of low value (i.e., approximately less than ￦5 million), and recognized ￦2,796 million and ￦2,349 million respectively, as expense for the year ended December 31, 2020 and 2021. The Company has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.
(2) | Right-of-use assets as of December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |
|  |  |  |  | Acquisition cost |  |  | Accumulated depreciation |  |  | Book value |
|  |  |  |  | In millions of won |
Land |  | ￦ |  |  |  |  | 811,014 |  |  |  | (104,435 | ) |  |  | 706,579 |
Buildings |  |  |  |  |  |  | 82,749 |  |  |  | (35,527 | ) |  |  | 47,222 |
Structures |  |  |  |  |  |  | 24,175 |  |  |  | (3,689 | ) |  |  | 20,486 |
Machinery |  |  |  |  |  |  | 1,308 |  |  |  | (613 | ) |  |  | 695 |
Ships |  |  |  |  |  |  | 4,280,331 |  |  |  | (842,968 | ) |  |  | 3,437,363 |
Vehicles |  |  |  |  |  |  | 29,281 |  |  |  | (15,756 | ) |  |  | 13,525 |
Others(*) |  |  |  |  |  |  | 2,676,356 |  |  |  | (2,360,060 | ) |  |  | 316,296 |
|  | ￦ |  |  |  |  | 7,905,214 |  |  |  | (3,363,048 | ) |  |  | 4,542,166 |
| (*) | Including power purchase agreements (“PPA”) with GS EPS and another LNG combined power supplier.
|  |  |  |  | 2021 |
|  |  |  |  | Acquisition cost |  |  | Accumulated depreciation |  |  | Book value |
|  |  |  |  | In millions of won |
Land |  | ￦ |  |  |  |  | 814,795 |  |  |  | (162,000 | ) |  |  | 652,795 |
Buildings |  |  |  |  |  |  | 106,823 |  |  |  | (43,939 | ) |  |  | 62,884 |
Structures |  |  |  |  |  |  | 26,374 |  |  |  | (5,226 | ) |  |  | 21,148 |
Machinery |  |  |  |  |  |  | 1,308 |  |  |  | (743 | ) |  |  | 565 |
Ships |  |  |  |  |  |  | 4,217,735 |  |  |  | (1,188,516 | ) |  |  | 3,029,219 |
Vehicles |  |  |  |  |  |  | 30,375 |  |  |  | (16,757 | ) |  |  | 13,618 |
Others(*) |  |  |  |  |  |  | 2,650,728 |  |  |  | (2,371,560 | ) |  |  | 279,168 |
|  | ￦ |  |  |  |  | 7,848,138 |  |  |  | (3,788,741 | ) |  |  | 4,059,397 |
| (*) | Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.
(3) | Changes in right-of-use assets for the years ended December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |
|  |  |  |  | Beginning balance |  |  | Increase |  |  | Depreciation |  |  | Decrease |  |  | Others |  |  | Ending balance |
|  |  |  |  | In millions of won |
Land |  | ￦ |  |  |  |  | 644,074 |  |  |  | 12,269 |  |  |  | (52,069 | ) |  |  | — |  |  |  | 102,305 |  |  |  | 706,579 |
Buildings |  |  |  |  |  |  | 34,577 |  |  |  | 53,182 |  |  |  | (37,609 | ) |  |  | (803 | ) |  |  | (2,125 | ) |  |  | 47,222 |
Structures |  |  |  |  |  |  | 25,644 |  |  |  | 260 |  |  |  | (1,485 | ) |  |  | — |  |  |  | (3,933 | ) |  |  | 20,486 |
Machinery |  |  |  |  |  |  | 824 |  |  |  | — |  |  |  | (129 | ) |  |  | — |  |  |  | — |  |  |  | 695 |
Ships |  |  |  |  |  |  | 3,688,289 |  |  |  | 183,789 |  |  |  | (427,221 | ) |  |  | — |  |  |  | (7,494 | ) |  |  | 3,437,363 |
Vehicles |  |  |  |  |  |  | 13,708 |  |  |  | 9,009 |  |  |  | (7,747 | ) |  |  | (21 | ) |  |  | (1,424 | ) |  |  | 13,525 |
Others |  |  |  |  |  |  | 376,457 |  |  |  | 32,825 |  |  |  | (59,994 | ) |  |  | (3 | ) |  |  | (32,989 | ) |  |  | 316,296 |
|  | ￦ |  |  |  |  | 4,783,573 |  |  |  | 291,334 |  |  |  | (586,254 | ) |  |  | (827 | ) |  |  | 54,340 |  |  |  | 4,542,166 |
|  |  |  |  | 2021 |
|  |  |  |  | Beginning balance |  |  | Increase |  |  | Depreciation |  |  | Decrease |  |  | Others |  |  | Ending balance |
|  |  |  |  | In millions of won |
Land |  | ￦ |  |  |  |  | 706,579 |  |  |  | 7,312 |  |  |  | (57,231 | ) |  |  | — |  |  |  | (3,865 | ) |  |  | 652,795 |
Buildings |  |  |  |  |  |  | 47,222 |  |  |  | 22,336 |  |  |  | (25,780 | ) |  |  | (1,469 | ) |  |  | 20,575 |  |  |  | 62,884 |
Structures |  |  |  |  |  |  | 20,486 |  |  |  | 2,198 |  |  |  | (1,536 | ) |  |  | — |  |  |  | — |  |  |  | 21,148 |
Machinery |  |  |  |  |  |  | 695 |  |  |  | — |  |  |  | (130 | ) |  |  | — |  |  |  | — |  |  |  | 565 |
Ships |  |  |  |  |  |  | 3,437,363 |  |  |  | 9,694 |  |  |  | (411,291 | ) |  |  | — |  |  |  | (6,547 | ) |  |  | 3,029,219 |
Vehicles |  |  |  |  |  |  | 13,525 |  |  |  | 9,583 |  |  |  | (8,162 | ) |  |  | (7 | ) |  |  | (1,321 | ) |  |  | 13,618 |
Others |  |  |  |  |  |  | 316,296 |  |  |  | 27,090 |  |  |  | (50,485 | ) |  |  | (10,311 | ) |  |  | (3,422 | ) |  |  | 279,168 |
|  | ￦ |  |  |  |  | 4,542,166 |  |  |  | 78,213 |  |  |  | (554,615 | ) |  |  | (11,787 | ) |  |  | 5,420 |  |  |  | 4,059,397 |
(4) | Lease liabilities as of December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Less than 1 year |  | ￦ |  |  |  |  | 614,442 |  |  |  | 620,121 |
1 ~ 5 years |  |  |  |  |  |  | 2,133,538 |  |  |  | 2,158,145 |
More than 5 years |  |  |  |  |  |  | 2,461,557 |  |  |  | 2,150,722 |
|  |  |  |  |  |  | 5,209,537 |  |  |  | 4,928,988 |
Less : Discount |  |  |  |  |  |  | (588,441 | ) |  |  | (518,485 | )
Present value of lease payment |  | ￦ |  |  |  |  | 4,621,096 |  |  |  | 4,410,503 |
(5) | The details of the liquidity classification of lease liabilities as of December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Current lease liabilities |  | ￦ |  |  |  |  | 576,665 |  |  |  | 583,558 |
Non-current lease liabilities |  |  |  |  |  |  | 4,044,431 |  |  |  | 3,826,945 |
|  | ￦ |  |  |  |  | 4,621,096 |  |  |  | 4,410,503 |
(6) | Changes in lease liabilities for the years ended December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |
|  |  |  |  | Beginning balance |  |  | Increase |  |  | Decrease |  |  | Interest expenses |  |  | Others(*) |  |  | Ending balance |
|  |  |  |  | In millions of won |
Lease liabilities |  | ￦ |  |  |  |  | 5,070,133 |  |  |  | 280,114 |  |  |  | (725,759 | ) |  |  | 111,782 |  |  |  | (115,174 | ) |  |  | 4,621,096 |
| (*) | Including translation effect of foreign currency lease liabilities and others.
|  |  |  |  | 2021 |
|  |  |  |  | Beginning balance |  |  | Increase |  |  | Decrease |  |  | Interest expenses |  |  | Others(*) |  |  | Ending balance |
|  |  |  |  | In millions of won |
Lease liabilities |  | ￦ |  |  |  |  | 4,621,096 |  |  |  | 73,090 |  |  |  | (665,687 | ) |  |  | 93,651 |  |  |  | 288,353 |  |  |  | 4,410,503 |
| (*) | Including translation effect of foreign currency lease liabilities and others.
(7) | Details of expense relating to lease contracts as lessee for the years ended December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Depreciation of right-of-use assets |  | ￦ |  |  |  |  | 586,254 |  |  |  | 554,615 |
Interest expenses of lease liabilities |  |  |  |  |  |  | 111,782 |  |  |  | 93,651 |
Leases expenses for short-term leases |  |  |  |  |  |  | 45,787 |  |  |  | 199,490 |
Leases expenses for leases of low-value assets |  |  |  |  |  |  | 2,796 |  |  |  | 2,349 |
Variable lease payments |  |  |  |  |  |  | 33,267 |  |  |  | 54,675 |
|  | ￦ |  |  |  |  | 779,886 |  |  |  | 904,780 |
(8) | The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value assets , amounts to ￦ 807,609 million and ￦ 922,200 million, for the years ended December 31, 2020 and 2021, respectively.
Company as a lessor
(1) | Finance lease contracts
The Company entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana Gas Combined Power Plant over a 25-year lease term, and an 89.1MW level Fujeij Wind Power Plant over a 20-year lease term. Also, the Company has provided fly-ash pipe conduits as finance leases with an average lease term of 7 years. In addition, the Company provides 26 energy storage system installation projects and 131 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Company entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.
(2) | Profit and loss related to finance lease for the years ended December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Finance income on the net investment in the lease |  | ￦ |  |  |  |  | 117,763 |  |  |  | 111,569 |
(3) | Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Less than 1 year |  | ￦ |  |  |  |  | 162,211 |  |  |  | 172,528 |
1 ~ 2 years |  |  |  |  |  |  | 148,485 |  |  |  | 163,937 |
2 ~ 3 years |  |  |  |  |  |  | 144,913 |  |  |  | 158,933 |
3 ~ 4 years |  |  |  |  |  |  | 139,605 |  |  |  | 156,450 |
4 ~ 5 years |  |  |  |  |  |  | 136,962 |  |  |  | 155,068 |
More than 5 years |  |  |  |  |  |  | 1,583,576 |  |  |  | 1,588,403 |
|  |  |  |  |  |  | 2,315,752 |  |  |  | 2,395,319 |
Less : Unearned finance income |  |  |  |  |  |  | (1,192,686 | ) |  |  | (1,194,627 | )
Net investment in the lease(*) |  | ￦ |  |  |  |  | 1,123,066 |  |  |  | 1,200,692 |
| (*) | Including the present value of unguaranteed residual value amounting to ￦16,407 million and ￦19,574 million, as of December 31, 2020 and 2021, respectively.
The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 0.00% up to 16.83% per year as of December 31, 2021. (prior year : 1.39% ~ 16.60%)
(4) | Changes in the allowance for doubtful accounts of finance lease receivables for the years ended December 31, 2020 and 2021 are as follows:
|  |  |  |  | 2020 |  |  | 2021 |
|  |  |  |  | In millions of won |
Beginning balance |  | ￦ |  |  |  |  | 862 |  |  |  | 990 |
Bad debt expense |  |  |  |  |  |  | 128 |  |  |  | — |
Reversal of allowance for doubtful accounts |  |  |  |  |  |  | — |  |  |  | (222 | )
Ending balance |  | ￦ |  |  |  |  | 990 |  |  |  | 768 |

X
- Definition The entire disclosure for leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2021-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IFRS16_g47-50_TI -URIDate 2021-03-24 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IFRS16_g51-60_TI -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfLeasesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_PresentationOfLeasesForLesseeAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration