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Operating Expenses | 12 Months Ended
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Dec. 31, 2017
Text block1 [abstract] |
Operating Expenses |
26. | Operating Expenses
Operating expenses for the years ended December 31, 2015, 2016 and 2017, are as follows:
(In millions of Korean won) |  | 2015 |  |  | 2016 |  |  | 2017 |
Salaries and wages |  | ￦ | 3,303,484 |  |  | ￦ | 3,477,596 |  |  | ￦ | 3,568,456 |
Depreciation |  |  | 2,756,131 |  |  |  | 2,762,773 |  |  |  | 2,745,969 |
Amortization of intangible assets |  |  | 582,467 |  |  |  | 582,493 |  |  |  | 618,533 |
Commissions |  |  | 1,036,852 |  |  |  | 1,099,429 |  |  |  | 1,085,865 |
Interconnection charges |  |  | 689,293 |  |  |  | 690,285 |  |  |  | 640,612 |
International interconnection fee |  |  | 231,060 |  |  |  | 216,633 |  |  |  | 214,058 |
Purchase of inventories |  |  | 3,963,036 |  |  |  | 3,407,263 |  |  |  | 4,053,693 |
Changes of inventories |  |  | (198,028 | ) |  |  | 162,323 |  |  |  | (187,439 | )
Sales commission |  |  | 1,856,595 |  |  |  | 1,968,035 |  |  |  | 2,201,778 |
Service cost |  |  | 1,163,887 |  |  |  | 1,322,337 |  |  |  | 1,428,405 |
Utilities |  |  | 319,303 |  |  |  | 323,406 |  |  |  | 323,313 |
Taxes and dues |  |  | 256,958 |  |  |  | 255,480 |  |  |  | 279,574 |
Rent |  |  | 469,950 |  |  |  | 455,457 |  |  |  | 448,772 |
Insurance premium |  |  | 211,104 |  |  |  | 178,231 |  |  |  | 69,384 |
Installation fee |  |  | 249,413 |  |  |  | 156,669 |  |  |  | 146,783 |
Advertising expenses |  |  | 177,348 |  |  |  | 185,560 |  |  |  | 197,114 |
Research and development expenses |  |  | 183,821 |  |  |  | 167,881 |  |  |  | 168,635 |
Card service cost |  |  | 2,959,765 |  |  |  | 3,049,559 |  |  |  | 3,094,894 |
Others |  |  | 1,410,349 |  |  |  | 1,319,688 |  |  |  | 1,379,438 |
Total |  | ￦ | 21,622,788 |  |  | ￦ | 21,781,098 |  |  | ￦ | 22,477,837 |
Details of employee benefits for the years ended December 31, 2015, 2016 and 2017, are as follows:
(In millions of Korean won) |  | 2015 |  |  | 2016 |  |  | 2017 |
Short-term employee benefits |  | ￦ | 3,055,699 |  |  | ￦ | 3,206,904 |  |  | ￦ | 3,297,944 |
Post-employment benefits(Defined benefit plan) |  |  | 202,814 |  |  |  | 208,942 |  |  |  | 209,770 |
Post-employment benefits(Defined contribution plan) |  |  | 35,699 |  |  |  | 46,023 |  |  |  | 45,936 |
Post-employment benefits(Others) |  |  | 5,535 |  |  |  | 8,017 |  |  |  | 6,949 |
Share-based payment |  |  | 3,737 |  |  |  | 7,710 |  |  |  | 7,660 |
Total |  | ￦ | 3,303,484 |  |  | ￦ | 3,477,596 |  |  | ￦ | 3,568,259 |

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