Net Defined Benefit Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

The amounts recognized in the statements of financial position are determined as follows:


(in millions of Korean won)	2016			2017
Present value of defined benefit obligations	￦	1,713,184		￦	1,911,166
Fair value of plan assets		(1,334,780	)		(1,519,779	)

Liabilities	￦	378,404		￦	396,079

Assets in the statement of financial position	￦	—		￦	3,692

Changes in the defined benefit obligations for the years ended December 31, 2016 and 2017, are as follows:


(in millions of Korean won)	2016			2017
Beginning	￦	1,601,974		￦	1,713,184
Current service cost		205,114			210,336
Interest expense		37,378			38,994
Benefit paid		(127,581	)		(154,600	)
Changes due to settlements of plan		(424	)		(61	)
Remeasurements:
Actuarial gains and losses arising from changes in demographic assumptions		(53,407	)		3,353
Actuarial gains and losses arising from changes in financial assumptions		26,717			36,946
Actuarial gains and losses arising from experience adjustments		18,809			63,583
Changes in scope of Consolidation		4,604			(569	)

Ending	￦	1,713,184		￦	1,911,166

Changes in the fair value of plan assets for the years ended December 31, 2016 and 2017, are as follows:


(in millions of Korean won)	2016			2017
Beginning	￦	1,077,891		￦	1,334,780
Interest income		25,237			30,303
Remeasurements:
Return on plan assets (excluding amounts included in interest income)		(2,323	)		(5,557	)
Benefits paid		(88,876	)		(130,510	)
Employer contributions		322,851			290,895
Changes in scope of consolidation		—			(132	)

Ending	￦	1,334,780		￦	1,519,779

Amounts recognized in the statement of profit or loss for the years ended December 31, 2016 and 2017, are as follows:


(In millions of Korean won)	2015			2016			2017
Current service cost	￦	200,994		￦	205,114		￦	210,336
Net Interest cost		16,793			12,141			8,691
Past service cost		—			424			(61	)
Transfer out		(11,942	)		(8,737	)		(9,196	)
Transfer to discontinued operation		(3,031	)		—			—

Total expenses	￦	202,814		￦	208,942		￦	209,770

Principal actuarial assumptions used are as follows:

The expected maturity analysis of undiscounted pension benefits as at December 31, 2017, is as follows:

(in millions of Korean won)

Less than

1 year

Between
1-2 years

Between
2-5 years

Over 5 years

Total

Pension benefits

￦

142,963

￦

179,612

￦

627,302

￦

3,763,601

￦

4,713,478

The sensitivity of the defined benefit obligations as of December 31, 2017, to changes in the principal assumptions is:


(in percentage, in millions of Korean won )	Effect on defined benefit obligation
	Changes in assumption	Increase in assumption			Decrease in assumption
Discount rate	0.5% point	￦	(62,000	)	￦	76,560
Salary growth rate	0.5% point		71,273			(57,848	)