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Related Party Transactions
 12 Months Ended
Dec. 31, 2017
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Related Party Transactions
34. Related Party Transactions

The list of related party of the Group as of December 31, 2017, is as follows:

 

Relationship    Name of Entry

Associates and joint ventures

    Korea Information & Technology Investment Fund, K- Realty CR-REITs No.1, KT-SB Venture Investment Fund, Boston Global Film & Contents Fund L.P., QTT Global (Group) Company Limited, CU Industrial Development Co., Ltd., PHI Healthcare., KD Living, Inc., MOS GS Co., Ltd., MOS Daegu Co., Ltd., MOS Chungcheong Co., Ltd., MOS Gangnam Co., Ltd., MOS GB Co., Ltd., MOS BS Co., Ltd., MOS Honam Co., Ltd., Oscar Ent. Co., Ltd., KT-CKP New Media Investment Fund, LoginD Co., Ltd., K-REALTY CR-REIT 6, K Bank, Inc., NgeneBio, ISU-kth Contents Investment Fund, Daiwon Broadcasting Co., Ltd., KT-DSC creative economy youth start-up investment fund, Gyeonggi-KT Green Growth Fund, Korea electronic Vehicle charging service, PT. Mitra Transaksi Indonesia, K-REALTY RENTAL HOUSING REIT 2, KT-IBKC future investment fund 1, AI RESEARCH INSTITUTE, Gyeonggi-KT Yoojin Superman Fund, FUNDA Co., Ltd., FUNDA Co., Ltd., CHAMP IT Co.,Ltd., GE Premier 1st Corporate Restructuring Real Estate Investment Trust Company, Alliance Internet Corp.

Outstanding balances of receivables and payables in relations to transactions with related parties as of December 31, 2016 and 2017, are as follows:

 

         2016  
         Receivables     Payables  
(In millions of Korean won)   Trade
receivables		     Loans     Other
receivables		     Trade
payables		    

Other

payables

  

Associates and joint ventures

    KT Wibro Infra Co., Ltd.   ￦ —       ￦ —       ￦ —       ￦ —       ￦ 43,394  
   K-Realty CR-REITs No.1     882       —         33,110       —         —    
   MOS GS Co., Ltd.     9       —         1       —         1,494  
   MOS Daegu Co., Ltd.     1       —         —         —         1,082  
   MOS Chungcheong Co., Ltd.     6       —         1       —         2,065  
   MOS Gangnam Co., Ltd.     6       —         1       —         1,129  
   MOS GB Co., Ltd.     19       —         5       —         2,167  
   MOS BS Co., Ltd.     34       —         1       —         1,114  
   MOS Honam Co., Ltd.     2       —         —         —         1,289  
   Others     481       —         179       3       1,266  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  

Total

   ￦ 1,440     ￦ —       ￦ 33,298     ￦ 3     ￦ 55,000  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

         2017  
         Receivables     Payables  
(In millions of Korean won)   Trade
receivables		     Loans     Other
receivables		     Trade
payables		    

Other

payables

  

Associates and joint ventures

    K-Realty CR-REITs No.1   ￦ 778     ￦ —       ￦ 33,800     ￦ —       ￦ —    
   MOS GS Co., Ltd.     17       —         —         —         392  
   MOS Daegu Co., Ltd.     1       —         —         —         1,388  
   MOS Chungcheong Co., Ltd.     1       —         290       —         1,827  
   MOS Gangnam Co., Ltd.     6       —         1       —         287  
   MOS GB Co., Ltd.     17       —         1       —         778  
   MOS BS Co., Ltd.     34       —         1       —         46  
   MOS Honam Co., Ltd.     2       —         1       —         384  
   K Bank, Inc.     1,338       —         7,994       —         296  
   NgeneBio     1       2,510       —         —         3  
   Others     54       —         1,281       —         2,135  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  

Total

   ￦ 2,249     ￦ 2,510     ￦ 43,369     ￦ —       ￦ 7,536  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Significant transactions with related parties for the years ended December 31, 2015, 2016 and 2017, are as follows:

 

          2015  
(In millions of Korean won)    Sales      Purchases2  

Associates and joint ventures

    KT Service Bukbu1    ￦ 2,143      ￦ 28,550  
   Information Technology Solution Nambu Corporation1      2,707        24,025  
   Information Technology Solution Seobu Corporation1      2,324        20,031  
   Information Technology Solution Busan Corporation1      1,496        14,049  
   KT Service Nambu1      1,972        21,133  
   Information Technology Solution Honam Corporation1      2,050        29,538  
   Information Technology Solution Daegu Corporation1      1,256        18,272  
   KT Wibro Infra Co., Ltd.      11        814  
   Smart Channel Co., Ltd.      6,545        4,722  
   K- Realty CR-REITs No.1      2,133        38,167  
   MOS GS Co., Ltd.      752        17,474  
   MOS Daegu Co., Ltd.      357        12,227  
   MOS Chungcheong Co., Ltd.      310        12,735  
   MOS Gangnam Co., Ltd.      454        15,829  
   MOS GB Co., Ltd.      964        21,582  
   MOS BS Co., Ltd.      453        15,482  
   MOS Honam Co., Ltd.      470        17,004  
   Others      4,394        13,510  
     

 

 

     

 

 

  
  

Total3

    ￦ 30,791      ￦ 325,144  
     

 

 

     

 

 

  

 

  1 The transactions for the year ended December 31, 2015, after KT Service Bukbu Co., Ltd. and KT Service Nambu Co., Ltd. were merged and included in the consolidation scope.
  2 The amount includes acquisition of property, plant and equipment, and others.
  3 Operating income amounting to ￦6,634 million of KT Capital Co., Ltd. and KT Rental that were classified as discontinued operations during the year ended December 31, 2015, is included.

 

          2016  
(In millions of Korean won)    Sales      Purchases2  

Associates and joint ventures

    KT Wibro Infra Co., Ltd.    ￦ 11      ￦ 391  
   Smart Channel Co., Ltd. 1      766        —    
   K- Realty CR-REITs No.1      1,989        37,469  
   MOS GS Co., Ltd.      663        17,361  
   MOS Daegu Co., Ltd.      291        12,220  
   MOS Chungcheong Co., Ltd.      408        13,469  
   MOS Gangnam Co., Ltd.      412        15,797  
   MOS GB Co., Ltd.      891        21,802  
   MOS BS Co., Ltd.      441        15,346  
   MOS Honam Co., Ltd.      418        14,389  
   Others      1,719        29,422  
     

 

 

     

 

 

  
  

Total

    ￦ 8,009      ￦ 177,666  
  

 

 

     

 

 

  

 

  1 The transactions for the year ended December 31, 2016, before Smart Channel Co., Ltd. was included in the consolidation scope.
  2 The amount includes acquisition of property, plant and equipment, and others.

 

          2017  
(In millions of Korean won)    Sales      Purchases1  

Associates and joint ventures

    K- Realty CR-REITs No.1    ￦ 2,233      ￦ 35,532  
   MOS GS Co., Ltd.      704        16,946  
   MOS Daegu Co., Ltd.      335        8,514  
   MOS Chungcheong Co., Ltd.      455        15,542  
   MOS Gangnam Co., Ltd.      484        16,380  
   MOS GB Co., Ltd.      987        21,651  
   MOS BS Co., Ltd.      460        15,957  
   MOS Honam Co., Ltd.      493        14,294  
   K Bank, Inc.3      29,939        59  
   NgeneBio2      43        —    
   Others      1,149        11,384  
     

 

 

     

 

 

  
  

Total

    ￦ 37,282      ￦ 156,259  
  

 

 

     

 

 

  

 

  1 The amount includes acquisition of property, plant and equipment and others.
  2 It is the amount after excluded from consolidation during the year.
  3 The sales amount consists of providing services of IT system construction to K Bank, Inc.

 

Key management compensation for the years ended December 31, 2015, 2016 and 2017, consists of:

 

(In millions of Korean won)    2015      2016      2017  

Salaries and other short-term benefits

    ￦ 2,455      ￦ 2,629      ￦ 2,879  

Post-employment benefits

      413        381        311  

Stock-based compensation

      997        1,237        1,331  
  

 

 

     

 

 

     

 

 

  

Total

    ￦ 3,865      ￦ 4,247      ￦ 4,521  
  

 

 

     

 

 

     

 

 

  

Fund transactions with related parties for the years ended December 31, 2016 and 2017, are as follows:

 

(In millions of Korean won)    2016  
   Equity
contributions
in cash		      Dividend
income		  

Associates and joint ventures

      

KT-DSC creative economy youth start-up investment fund

    ￦ 6,000      ￦ —    

PT. Mitra Transaksi Indonesia

      16,626        —    

K-REALTY RENTAL HOUSING REIT 2

      5,500        —    

AI RESEARCH INSTITUTE

      3,000        —    

KT-IBKC future investment fund 1

      3,750        —    

Gyeonggi-KT Yoojin Superman Fund

      1,000        —    

FUNDA Co., Ltd.

      2,799        —    

K-Realty CR-REITs No.1

      —          4,186  

Korea Information & Technology Investment Fund

      —          3,201  

Daiwon Broadcasting Co., Ltd.

      —          85  

Others

      —          82  
  

 

 

     

 

 

  

Total

    ￦ 38,675      ￦ 7,554  
  

 

 

     

 

 

  

 

(In millions of Korean won)    2017  
   Equity
contributions
in cash		      Dividend
income		  

Associates and joint ventures

      

PT. Mitra Transaksi Indonesia

    ￦ 5,194      ￦ —    

KT-IBKC future investment fund 1

      7,500        —    

CHAMP IT Co.,Ltd.

      750        —    

Korea Electronic Vehicle Charging Service

      864        —    

Gyeonggi-KT Yoojin Superman Fund

      1,000        —    

K-REALTY CR REIT 1

      —          5,392  

K Bank, Inc.

      26,543        —    

Korea Information & Technology Investment Fund

      —          739  

MOS GS Co., Ltd.

      —          12  

MOS Daegu Co., Ltd.

      —          12  

MOS Chungcheong Co., Ltd.

      —          12  

MOS Gangnam Co., Ltd.

      —          10  

MOS GB Co., Ltd.

      —          15  

MOS BS Co., Ltd.

      —          10  

MOS Honam Co., Ltd.

      —          10  
  

 

 

     

 

 

  

Total

    ￦ 41,851      ￦ 6,212