XML 42 R29.htm IDEA: XBRL DOCUMENT

Lease

12 Months Ended

Dec. 31, 2023

Presentation of leases for lessee [abstract]

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 ￦235,473 million and ￦172,711 million respectively, as expense for the years ended December 31, 2022 and 2023. The Company also applies the leases of

low-value

assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e., approximately less than ￦5 million), and recognized ￦3,147 million and ￦4,659 million respectively, as expense for the years ended December 31, 2022 and 2023. 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, 2022 and 2023 are as follows:


		2022
		Acquisition cost		Accumulated depreciation			Book value

		In millions of won
Land	￦		886,076		(224,277	)		661,799
Buildings			135,290		(60,434	)		74,856
Structures			30,879		(6,914	)		23,965
Machinery			1,737		(902	)		835
Ships			4,151,460		(1,554,597	)		2,596,863
Vehicles			35,712		(20,996	)		14,716
Others (*)			751,570		(413,479	)		338,091

	￦		5,992,724		(2,281,599	)		3,711,125

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.


		2023
		Acquisition cost		Accumulated depreciation			Book value

		In millions of won
Land	￦		937,481		(281,621	)		655,860
Buildings			188,017		(97,444	)		90,573
Structures			46,573		(9,217	)		37,356
Machinery			26,453		(20,510	)		5,943
Ships			4,137,168		(1,823,863	)		2,313,305
Vehicles			59,208		(33,717	)		25,491
Others (*)			646,894		(411,679	)		235,215

	￦		6,041,794		(2,678,051	)		3,363,743

(*)

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, 2022 and 2023 are as follows:


		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


		2023
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
		In millions of won
Land	￦		661,799		2,696		(57,461	)		(126	)		48,952			655,860
Buildings			74,856		24,622		(32,591	)		(904	)		24,590			90,573
Structures			23,965		49		(2,471	)		(273	)		16,086			37,356
Machinery			835		—		(94	)		—			5,202			5,943
Ships			2,596,863		199,538		(382,298	)		—			(100,798	)		2,313,305
Vehicles			14,716		21,097		(10,464	)		(1,008	)		1,150			25,491
Others			338,091		13,860		(51,138	)		(302	)		(65,296	)		235,215

	￦		3,711,125		261,862		(536,517	)		(2,613	)		(70,114	)		3,363,743

(4)	Lease liabilities as of December 31, 2022 and 2023 are as follows:


		2022			2023
		In millions of won
Less than 1 year	￦		639,756			641,525
1 ~ 5 years			2,047,584			1,898,846
More than 5 years			1,925,012			1,694,729

			4,612,352			4,235,100
Less: Discount			(449,209	)		(427,220	)

Present value of lease payment	￦		4,163,143			3,807,880

(5)	The details of the liquidity classification of lease liabilities as of December 31, 2022 and 2023 are as follows:


		2022		2023
		In millions of won
Current lease liabilities	￦		614,037		612,765
Non-current lease liabilities			3,549,106		3,195,115

	￦		4,163,143		3,807,880

(6)	Changes in lease liabilities for the years ended December 31, 2022 and 2023 are as follows:


		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.


		2023
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)			Ending balance
		In millions of won
Lease liabilities	￦		4,163,143		253,495		(661,665	)		87,426		(34,519	)		3,807,880

(*)

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, 2022 and 2023 are as follows:


		2022		2023
		In millions of won
Depreciation of right-of-use assets	￦		509,068		536,517
Interest expenses of lease liabilities			91,590		87,426
Leases expenses for short-term leases			235,473		172,711
Leases expenses for leases of low-value assets			3,147		4,659
Variable lease payments			112,158		62,006

	￦		951,436		863,319

(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 ￦ 1,005,014 million and ￦ 901,041 million, for the years ended December 31, 2022 and 2023, 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 21 energy storage system installation projects and 151 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Company entered into a PPA with The Federal Electricity Commission 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, 2022 and 2023 are as follows:


		2022		2023
		In millions of won
Finance income on the net investment in the lease	￦		122,355		118,695

(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, 2022 and 2023 are as follows:


		2022			2023
		In millions of won
Less than 1 year	￦		181,930			189,779
1 ~ 2 years			169,693			182,743
2 ~ 3 years			166,787			179,428
3 ~ 4 years			166,196			178,074
4 ~ 5 years			166,965			168,221
More than 5 years			1,527,093			1,408,350

			2,378,664			2,306,595
Less: Unearned finance income			(1,139,274	)		(1,057,434	)

Net investment in the lease (*)	￦		1,239,390			1,249,161

(*)

Including the present value of unguaranteed residual value amounting to ￦22,910 million and ￦25,521 million, as of December 31, 2022 and 2023, 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 17.03% per year as of December 31, 2023. (prior year : 0.00% ~ 17.08%)

(4)	Changes in the allowance for doubtful accounts of finance lease receivables for the years ended December 31, 2022 and 2023 are as follows:


		2022		2023
		In millions of won
Beginning balance	￦		768		4,505
Bad debt expense			3,737		751

Ending balance	￦		4,505		5,256