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Operating Expenses | 12 Months Ended
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Dec. 31, 2018
Text block [abstract] |
Operating Expenses |
27. | Operating Expenses
Operating expenses for the years ended December 31, 2016, 2017 and 2018, are as follows:
(In millions of Korean won) |  | 2016 |  |  | 2017 |  |  | 2018 |
Salaries and wages |  | ￦ | 3,477,596 |  |  | ￦ | 3,568,456 |  |  | ￦ | 3,845,842 |
Depreciation |  |  | 2,762,773 |  |  |  | 2,745,969 |  |  |  | 2,674,205 |
Amortization of intangible assets |  |  | 582,493 |  |  |  | 618,533 |  |  |  | 607,527 |
Commissions |  |  | 1,099,429 |  |  |  | 1,085,865 |  |  |  | 1,080,168 |
Interconnection charges |  |  | 690,285 |  |  |  | 640,612 |  |  |  | 579,613 |
International interconnection fee |  |  | 216,633 |  |  |  | 214,058 |  |  |  | 226,627 |
Purchase of inventories |  |  | 3,407,263 |  |  |  | 4,053,693 |  |  |  | 4,414,094 |
Changes of inventories |  |  | 162,323 |  |  |  | (187,439 | ) |  |  | (432,607 | )
Sales commission |  |  | 1,968,035 |  |  |  | 2,201,778 |  |  |  | 1,942,841 |
Service cost |  |  | 1,322,337 |  |  |  | 1,428,405 |  |  |  | 1,540,869 |
Utilities |  |  | 323,406 |  |  |  | 323,313 |  |  |  | 323,411 |
Taxes and dues |  |  | 255,480 |  |  |  | 279,574 |  |  |  | 285,131 |
Rent |  |  | 455,457 |  |  |  | 448,772 |  |  |  | 460,377 |
Insurance premium |  |  | 178,231 |  |  |  | 69,384 |  |  |  | 73,654 |
Installation fee |  |  | 156,669 |  |  |  | 146,783 |  |  |  | 143,669 |
Advertising expenses |  |  | 185,560 |  |  |  | 197,114 |  |  |  | 157,675 |
Research and development expenses |  |  | 167,881 |  |  |  | 168,635 |  |  |  | 176,758 |
Card service cost |  |  | 3,049,559 |  |  |  | 3,094,894 |  |  |  | 3,112,618 |
Others |  |  | 1,319,688 |  |  |  | 1,379,438 |  |  |  | 1,122,718 |
Total |  | ￦ | 21,781,098 |  |  | ￦ | 22,477,837 |  |  | ￦ | 22,335,190 |
Details of employee benefits for the years ended December 31, 2016, 2017 and 2018, are as follows:
(In millions of Korean won) |  | 2016 |  |  | 2017 |  |  | 2018 |
Short-term employee benefits |  | ￦ | 3,206,904 |  |  | ￦ | 3,297,944 |  |  | ￦ | 3,505,214 |
Post-employment benefits(Defined benefit plan) |  |  | 208,942 |  |  |  | 209,770 |  |  |  | 232,045 |
Post-employment benefits(Defined contribution plan) |  |  | 46,023 |  |  |  | 45,936 |  |  |  | 48,210 |
Post-employment benefits(Others) |  |  | 8,017 |  |  |  | 6,949 |  |  |  | 51,934 |
Share-based payment |  |  | 7,710 |  |  |  | 7,660 |  |  |  | 8,439 |
Total |  | ￦ | 3,477,596 |  |  | ￦ | 3,568,259 |  |  | ￦ | 3,845,842 |

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