(3)	Changes in right-of-use assets for the years ended December 31, 2021 and 2022 are as follows:


		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		(54,435	)		(10,311	)		528			279,168

	￦		4,542,166		78,213		(558,565	)		(11,787	)		9,370			4,059,397


		2022
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance

		In millions of won
Land	￦		652,795		63,654		(41,260	)		—			(13,390	)		661,799
Buildings			62,884		42,399		(30,243	)		(1,042	)		858			74,856
Structures			21,148		4,256		(1,758	)		—			319			23,965
Machinery			565		429		(159	)		—			—			835
Ships			3,029,219		—		(393,677	)		—			(38,679	)		2,596,863
Vehicles			13,618		13,475		(8,673	)		(962	)		(2,742	)		14,716
Others			279,168		72,803		(33,298	)		(834	)		20,252			338,091

	￦		4,059,397		197,016		(509,068	)		(2,838	)		(33,382	)		3,711,125

(4)	Lease liabilities as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Less than 1 year	￦		620,121			639,756
1 ~ 5 years			2,158,145			2,047,584
More than 5 years			2,150,722			1,925,012

			4,928,988			4,612,352
Less : Discount			(518,485	)		(449,209	)

Present value of lease payment	￦		4,410,503			4,163,143

(5)	The details of the liquidity classification of lease liabilities as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Current lease liabilities	￦		583,558		614,037
Non-current lease liabilities			3,826,945		3,549,106

	￦		4,410,503		4,163,143

(6)	Changes in lease liabilities for the years ended December 31, 2021 and 2022 are as follows:


		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


		2022
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)		Ending balance

		In millions of won
Lease liabilities	￦		4,410,503		109,019		(654,236	)		91,590		206,267		4,163,143

(*)

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, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Depreciation of right-of-use assets	￦		558,565		509,068
Interest expenses of lease liabilities			93,651		91,590
Leases expenses for short-term leases			199,490		235,473
Leases expenses for leases of low-value assets			2,349		3,147
Variable lease payments			54,675		112,158

	￦		908,730		951,436

(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 ￦ 922,200 million and ￦ 1,005,014 million, for the years ended December 31, 2021 and 2022, 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. In addition, the Company provides 27 energy storage system installation projects and 133 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, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Finance income on the net investment in the lease	￦		111,569		122,355

(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, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Less than 1 year	￦		172,528			181,930
1 ~ 2 years			163,937			169,693
2 ~ 3 years			158,933			166,787
3 ~ 4 years			156,450			166,196
4 ~ 5 years			155,068			166,965
More than 5 years			1,588,403			1,527,093

			2,395,319			2,378,664
Less : Unearned finance income			(1,194,627	)		(1,139,274	)

Net investment in the lease(*)	￦		1,200,692			1,239,390

(*)

Including the present value of unguaranteed residual value amounting to ￦19,574 million and ￦22,910 million, as of December 31, 2021 and 2022, 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 17.08% per year as of December 31, 2022. (prior year : 0.00% ~ 16.83%)

(4)	Changes in the allowance for doubtful accounts of finance lease receivables for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		990			768
Bad debt expense			—			3,737
Reversal of allowance for doubtful accounts			(222	)		—

Ending balance	￦		768			4,505