10.

Property, Plant and Equipment

Changes in property, plant and equipment for the years ended December 31, 2016 and 2017, are as follows:


	2016
(in millions of Korean won)	Land			Buildings and structures			Machinery and equipment			Others			Construction- in-progress			Total
Acquisition cost	￦	1,287,749		￦	3,558,460		￦	34,388,584		￦	1,951,749		￦	1,033,777		￦	42,220,319
Less: Accumulated depreciation (including accumulated impairment loss and others)		(132	)		(1,459,416	)		(24,879,791	)		(1,400,766	)		(1,300	)		(27,741,405	)

Beginning, net		1,287,617			2,099,044			9,508,793			550,983			1,032,477			14,478,914
Acquisition		291			3,608			247,431			146,471			2,297,346			2,695,147
Disposal/Abandonment		(855	)		(1,650	)		(112,135	)		(8,155	)		(3,357	)		(126,152	)
Depreciation		—			(135,389	)		(2,498,837	)		(143,978	)		—			(2,778,204	)
Impairment		—			—			361			(47,086	)		—			(46,725	)
Transfer in (out)		4,274			136,041			2,060,936			11,073			(2,212,324	)		—
Inclusion in scope of consolidation		—			—			68			764			—			832
Others		17,625			23,078			53,568			14,851			(20,823	)		88,299

Ending, net	￦	1,308,952		￦	2,124,732		￦	9,260,185		￦	524,923		￦	1,093,319		￦	14,312,111

Acquisition cost	￦	1,309,084		￦	3,729,228		￦	35,106,184		￦	1,895,332		￦	1,093,941		￦	43,133,769
Less: Accumulated depreciation (including accumulated impairment loss and others)		(132	)		(1,604,496	)		(25,845,999	)		(1,370,409	)		(622	)		(28,821,658	)


	2017
(In millions of Korean won)	Land			Buildings and structures			Machinery and equipment			Others			Construction- in-progress			Total
Acquisition cost	￦	1,309,084		￦	3,729,228		￦	35,106,184		￦	1,895,332		￦	1,093,941		￦	43,133,769
Less: Accumulated depreciation (including accumulated impairment loss and others)		(132	)		(1,604,496	)		(25,845,999	)		(1,370,409	)		(622	)		(28,821,658	)

Beginning, net		1,308,952			2,124,732			9,260,185			524,923			1,093,319			14,312,111
Acquisition		1,948			120			237,218			129,464			2,262,681			2,631,431
Disposal and termination		(4,656	)		(4,022	)		(176,085	)		(8,242	)		(3,133	)		(196,138	)
Depreciation		—			(135,242	)		(2,469,459	)		(150,535	)		—			(2,755,236	)
Impairment (Recovery of impairment)		—			—			(9,256	)		(1	)		(28	)		(9,285	)
Transfer in (out)		26,764			25,305			2,227,808			10,344			(2,600,908	)		(310,687	)
Exclusion from scope of consolidation		—			(19	)		(772	)		(120	)		(34	)		(945	)
Transfer from(to) investment properties		(64,449	)		1,793			—			1,184			—			(61,472	)
Others		98			(245	)		(8,830	)		(179	)		(38,304	)		(47,460	)
Ending, net	￦	1,268,657		￦	2,012,422		￦	9,060,809		￦	506,838		￦	713,593		￦	13,562,319

Acquisition cost	￦	1,268,789		￦	3,750,861		￦	35,971,877		￦	1,920,571		￦	714,706		￦	43,626,804

Less: Accumulated depreciation (including accumulated impairment loss and others)		(132	)		(1,738,439	)		(26,911,068	)		(1,413,733	)		(1,113	)		(30,064,485	)

Details of property, plant and equipment provided as collateral as of December 31, 2016 and 2017, are as follows:

(In millions of Korean won)

2016

Carrying
amount

Secured
amount

Related

line item

Related
amount

Secured party

Land and Buildings

￦

13,337

￦

16,009

Borrowings

￦

11,540

Standard
Chartered
Bank

Korea
Development
Bank

Others

55,951

43,506

25,379

Shinhan Bank

(In millions of Korean won)

2017

Carrying
amount

Secured
amount

Related

line item

Related
amount

Secured party

Land and Buildings

13,115

15,995

Borrowings

2,730

Standard
Chartered
Bank

Korea
Development
Bank

Others

53,757

38,570

16,071

Shinhan Bank

The borrowing costs capitalized for qualifying assets amount to ￦8,473 million (2016: ￦16,451 million) in 2017. The interest rate applied to calculate the capitalized borrowing costs in 2017 is 3.37% to 3.54% (2016: 2.29% to 3.50%).