11.

Property and Equipment

Changes in property and equipment for the years ended December 31, 2017 and 2018, are as follows:


	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 and capital expenditure		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		—			—			(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	)


	2018
(In millions of Korean won)	Land			Buildings and structures			Machinery and equipment			Others			Construction- in-progress			Total
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	)

Beginning, net		1,268,657			2,012,422			9,060,809			506,838			713,593			13,562,319
Acquisition and capital expenditure		9,897			1,728			137,088			101,832			2,037,085			2,287,630
Disposal and termination		(3,718	)		(2,640	)		(113,266	)		(4,336	)		(582	)		(124,542	)
Depreciation		—			(132,353	)		(2,398,782	)		(159,625	)		—			(2,690,760	)
Impairment		—			(5,551	)		(1,237	)		(8,935	)		(170	)		(15,893	)
Transfer in (out)		7,663			127,052			1,767,878			9,525			(1,911,094	)		1,024
Inclusion in scope of consolidation		—			44			4,228			2,526			—			6,798
Transfer from(to) investment properties		(3,080	)		5,366			—			37,077			—			39,363
Others		1,768			1,617			18,298			(6,521	)		(12,844	)		2,318

Ending, net	￦	1,281,187		￦	2,007,685		￦	8,475,016		￦	478,381		￦	825,988		￦	13,068,257

Acquisition cost	￦	1,281,319		￦	3,873,074		￦	36,327,007		￦	1,981,646		￦	826,583		￦	44,289,629
Less: Accumulated depreciation (including accumulated impairment loss and others)		(132	)		(1,865,389	)		(27,851,991	)		(1,503,265	)		(595	)		(31,221,372	)

Details of property and equipment provided as collateral as at December 31, 2017 and 2018, are as follows:

(In millions of Korean won)

December 31, 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

(In millions of Korean won)

December 31, 2018

Carrying
amount

Secured
amount

Related
line item

Related
amount

Secured party

Land and Buildings

￦

13,163

￦

15,113

Borrowings

￦

7,878

Standard
Chartered
Bank,

Korea
Development
Bank

Others

50,278

40,252

10,063

Shinhan Bank

The borrowing costs capitalized for qualifying assets amount to ￦7,329 million (2017: ￦8,473) in 2018. The interest rate applied to calculate the capitalized borrowing costs in 2018 is 3.22% (2017: 3.37% to 3.54%).