Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income tax expense (benefit) [Abstract]

(1)	Income tax expense (benefit) for the years ended December 31, 2019, 2020 and 2021 are as follows:


		2019			2020			2021
		In millions of won
Current income tax expense
Payment of income tax	￦		538,223			671,179			357,767
Adjustment in respect of prior years due to change in estimate			(176,441	)		(63,756	)		153,113
Current income tax directly recognized in equity			(53,302	)		51,486			(198,714	)

			308,480			658,909			312,166

Deferred tax expense (benefit)
Generation and realization of temporary differences			(636,984	)		(77,985	)		(489,411	)
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods			(22,469	)		(10,471	)		(43,653	)
Changes in deferred tax on tax losses carryforwards			(582,011	)		296,070			(1,641,823	)
Tax credit carryforwards			(71,306	)		32,541			(12,199	)
Amount due to change in tax rate or regulations			1,987			—			18,931

			(1,310,783	)		240,155			(2,168,155	)

Income tax expense (benefit)	￦		(1,002,303	)		899,064			(1,855,989	)

Summary of Reconciliation Between Actual Income Tax Expense and Amount Computed by Applying the Statutory Tax Rate

(2)	Reconciliation between actual income tax expense (benefit) and amount computed by applying the statutory tax rate to profit (loss) before income taxes for the years ended December 31, 2019, 2020 and 2021 are as follows:


		2019			2020			2021
		In millions of won
Profit (loss) before income tax	￦		(3,265,838	)		2,991,533			(7,085,214	)

Income tax expense (benefit) computed at applicable tax rate(*1)			(898,105	)		822,672			(1,948,434	)
Adjustments
Effect of applying gradual tax rate			10,362			(10,362	)		(10,362	)
Effect of non-taxable income			(9,990	)		(13,593	)		(4,983	)
Effect of non-deductible expenses			12,197			46,776			78,814
Effect of tax losses that are not recognized as deferred tax asset			57,490			—			1,351
Effects of tax credits and deduction			(76,983	)		(63,753	)		(43,931	)
Reversal of unrecognized deferred tax asset, net			(22,469	)		(10,471	)		(43,641	)
Effect of change in deferred tax due to change in tax rate			16,848			(17,590	)		18,931
Deduction of deferred tax assets			—			55,682			73,887
Deferred tax related to investments in subsidiaries, associates and joint ventures			147,598			102,137			(135,878	)
Others, net			(62,810	)		51,322			5,144

			72,243			140,148			(60,668	)
Adjustment in respect of prior years due to change in estimate			(176,441	)		(63,756	)		153,113

Income tax expense (benefit)	￦		(1,002,303	)		899,064			(1,855,989	)

Effective tax rate			(*2	)		30.05	%		(*2	)

(*1)

Applicable tax rate is 27.5% as of December 31, 2019, 2020 and 2021.

(*2)

The effective tax rate for the year ended December 31, 2019 and 2021 is not calculated due to income tax benefit and the effective tax rate for the year ended December 31, 2020 is 30.05%.

Summary of Income Tax Directly Adjusted to Shareholders' Equity (Except for Accumulated Other Comprehensive Income (Loss))

(3)	Income tax directly adjusted to equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2019, 2020 and 2021 are as follows:


		2019		2020		2021
		In millions of won
Dividends of hybrid bond and others	￦		3,432		4,273		4,736

Summary of Income Tax Recognized as Other Comprehensive Income (Loss)

(4)	Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021 are as follows:


		2019			2020			2021
		In millions of won
Income tax recognized as other comprehensive income (loss)
Gain (loss) on valuation of financial assets at fair value through other comprehensive income	￦		(4,217	)		19,447			(9,753	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			(15,642	)		(47,231	)		24,220
Remeasurement of defined benefit liability			(40,235	)		14,971			(126,890	)
Investments in associates			4,275			35,714			(53,672	)
Others			(914	)		24,312			(37,355	)

	￦		(56,733	)		47,213			(203,450	)

Summary of Changes in Deferred Income Tax Assets (Liabilities)

(5)	Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2020 and 2021 are as follows, continued:


		2020
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance
		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		648,847			14,566			26,374			—		689,787
Cash flow hedge			(999	)		63,817			(47,231	)		—		15,587
Investments in subsidiaries, associates and joint ventures			(8,665,727	)		(38,002	)		35,714			—		(8,668,015	)
Property, plant and equipment			(7,115,218	)		(598,231	)		—			—		(7,713,449	)
Finance lease			(160,443	)		(50,977	)		—			—		(211,420	)
Intangible assets			(55,906	)		24,740			—			—		(31,166	)
Financial assets at fair value through profit or loss			341			(328	)		—			—		13
Financial assets at fair value through other comprehensive income			18,245			258			19,447			—		37,950
Deferred revenue			213,003			(13,302	)		—			—		199,701
Provisions			5,456,919			459,884			—			—		5,916,803
Doubtful receivables			59			(59	)		—			—		—
Other finance liabilities			39,364			(13,238	)		—			4,273		30,399
Gains or losses on foreign exchange translation			57,961			(69,596	)		—			—		(11,635	)
Allowance for doubtful accounts			57,607			(1,478	)		—			—		56,129
Accrued income			(4,376	)		13,320			—			—		8,944
Special deduction for property, plant and equipment			(215,373	)		(10,978	)		—			—		(226,351	)
Others			1,342,716			150,326			12,909			—		1,505,951

			(8,382,980	)		(69,278	)		47,213			4,273		(8,400,772	)

Deferred tax on unused tax losses and tax credit
Unused tax losses			1,111,813			(218,739	)		—			—		893,074
Excess of donation limit			36,695			(1,514	)		—			—		35,181
Tax credit			107,526			(2,110	)		—			—		105,416

			1,256,034			(222,363	)		—			—		1,033,671

	￦		(7,126,946	)		(291,641	)		47,213			4,273		(7,367,101	)

		2021
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance
		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		689,787			(4,514	)		(126,890	)		—		558,383
Cash flow hedge			15,587			(90,217	)		24,220			463		(49,947	)
Investments in subsidiaries, associates and joint ventures			(8,668,015	)		367			(53,672	)		—		(8,721,320	)
Property, plant and equipment			(7,713,449	)		282,988			—			—		(7,430,461	)
Finance lease			(211,420	)		(204,138	)		—			—		(415,558	)
Intangible assets			(31,166	)		(315	)		—			—		(31,481	)
Financial assets at fair value through profit or loss			13			(1	)		—			—		12
Financial assets at fair value through other comprehensive income			37,950			(816	)		(9,753	)		—		27,381
Deferred revenue			199,701			(13,310	)		—			—		186,391
Provisions			5,916,803			577,511			—			—		6,494,314
Doubtful receivables			—			801			—			—		801
Other finance liabilities			30,399			(3,262	)		—			4,273		31,410
Gains or losses on foreign exchange translation			(11,635	)		103,046			—			—		91,411
Allowance for doubtful accounts			56,129			8,135			—			—		64,264
Accrued income			8,944			1,058			—			—		10,002
Special deduction for property, plant and equipment			(226,351	)		2,224			—			—		(224,127	)
Others			1,505,951			(22,769	)		(37,355	)		—		1,445,827

			(8,400,772	)		636,788			(203,450	)		4,736		(7,962,698	)

Deferred tax on unused tax losses and tax credit
Unused tax losses			893,074			1,666,803			—			—		2,559,877
Excess of donation limit			35,181			34,004			—			—		69,185
Tax credit			105,416			29,274			—			—		134,690

			1,033,671			1,730,081			—			—		2,763,752

	￦		(7,367,101	)		2,366,869			(203,450	)		4,736		(5,198,946	)

Summary of Deferred Income Tax Assets (Liabilities)

(6)	Deferred tax assets (liabilities) recognized in the consolidated statements of financial position as of December 31, 2020 and 2021 are as follows:


		2020			2021
		In millions of won
Deferred tax assets	￦		1,733,146			1,901,992
Deferred tax liabilities			(9,100,247	)		(7,100,938	)

	￦		(7,367,101	)		(5,198,946	)

Summary of Deductible Temporary Differences, Tax Losses and Unused Tax Credits for Which No Deferred Income Tax Assets Were Recognized

(7)	Details of deductible temporary differences, tax losses and unused tax credits for which no deferred tax assets were recognized as of December 31, 2020 and 2021 are as follows:


		2020		2021
		In millions of won
Deductible temporary differences	￦		1,405,621		1,539,980