Leases (Tables)

12 Months Ended

Dec. 31, 2021

Presentation of leases for lessee [abstract]

(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.

Summary of Changes in Right-of-Use Assets

(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

Summary of Lease liabilities

(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

Summary of Liquidity Classification of Lease Liabilities

(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

Summary of Changes in lease liabilities

(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.

Summary of Details of Expense Relating to Lease Contracts As Lessee

(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

Summary of Profit and Loss Related To Finance Lease

(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

Summary of Maturity Analysis of Finance Lease Payments Receivable

(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.

Summary of Changes in Allowance For Doubtful Accounts of Finance Lease Receivables

(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