14.

Investments in Associates and Joint Ventures

Details of associates as at December 31, 2017 and 2018, are as follows:


	Percentage of ownership (%)						Location	Date of financial statements
	2017			2018
Korea Information & Technology Fund		33.3	%		33.3	%	Korea		December 31
KT-SB Venture Investment Fund¹		50.0	%		50.0	%	Korea		December 31
KT-IBKC Future Investment Fund 1¹		50.0	%		50.0	%	Korea		December 31
KT-CKP New Media Investment Fund		49.7	%		49.7	%	Korea		December 31
K Bank Inc.¹		10.0	%		10.0	%	Korea		December 31

At the end of the reporting period, even though the Group (KT-SB Venture Investment Fund and KT-IBKC Future Investment Fund 1) has 50% ownership, the equity method of accounting has been applied as the Group, which is a limited partner of the investment fund, cannot participate in determining the operating and financial policies. Also, 8.8% of non-voting convertible stock are excluded in deriving percentage of ownership of K bank Inc.

Changes in investments in associates and joint ventures for the years ended December 31, 2017 and 2018, are as follows:


	2017
(In millions of Korean won)	Beginning		Acquisition (Disposal)			Share of net profit from associates and joint ventures			Impairment			Others			Ending
Korea Information & Technology Fund	￦	134,969	￦	—		￦	4,275		￦	—		￦	290		￦	139,534
KT-SB Venture Investment Fund		4,736		(1,069	)		(725	)		—			—			2,942
Mongolian Telecommunications		6,244		—			(348	)		—			(5,896	)		—
KT Wibro Infra Co., Ltd.		52,200		(52,200	)		—			—			—			—
KT-IBKC Future Investment Fund¹		3,621		7,500			(296	)		—			—			10,825
KT-CKP New Media Investment Fund		4,454		(2,970	)		810			—			—			2,294
K Bank Inc.		—		26,543			(17,244	)		—			32,809			42,108
Others		77,851		3,178			(1,952	)		(3,662	)		6,313			81,728

	￦	284,075	￦	(19,018	)	￦	(15,480	)	￦	(3,662	)	￦	33,516		￦	279,431


	2018
(In millions of Korean won)	Beginning		Acquisition (Disposal)			Share of net profit from associates and joint ventures¹			Impairment		Others			Ending
Korea Information & Technology Fund	￦	139,534	￦	—		￦	15,037		￦	—	￦	(6,316	)	￦	148,255
KT-SB Venture Investment Fund		2,942		—			1,528			—		—			4,470
KT-IBKC Future Investment Fund¹		10,825		(1,050	)		1,028			—		(842	)		9,961
KT-CKP New Media Investment Fund		2,294		(1,229	)		(784	)		—		—			281
K Bank Inc.		42,108		26,725			(19,504	)		—		3,326			52,655
Others²		81,728		2,466			8,607			—		(36,016	)		56,785

	￦	279,431	￦	26,912		￦	5,912		￦	—	￦	(39,848	)	￦	272,407

KT investment Co., Ltd., a subsidiary of the Group, recognized its share in net profit from associates and joint ventures as operating revenue and expense. These include its share in net loss from associates and joint ventures of ￦445 million (2017:￦1,588 million) recognized as operating expense during the period.

2	The Group classified total shares of PT Mitra Transksi Indonesia as assets held for sale (Note 10).

Summarized financial information of associates and joint ventures as at and for the years ended December 31, 2017 and 2018, is as follows:


(In millions of Korean won)	December 31, 2017
	Current assets		Non-current assets		Current liabilities		Non-current liabilities
Korea Information & Technology Fund	￦	144,874	￦	273,727	￦	—	￦	—
KT-SB Venture Investment		120		5,770		6		—
KT-IBKC Future Investment Fund 1		5,499		16,302		152		—
KT-CKP New Media Investment Fund		287		4,333		—		—
K Bank Inc.		1,258,969		92,137		1,116,154		1,177


(In millions of Korean won)	2017
	Operating revenue		Profit (loss) for the year			Other comprehensive income			Total comprehensive income			Dividends received from associates
Korea Information & Technology Fund	￦	36,462	￦	12,825		￦	1,868		￦	14,693		￦	739
KT-SB Venture Investment		3		(1,449	)		—			(1,449	)		—
KT-IBKC Future Investment Fund 1		15		(593	)		—			(593	)		—
KT-CKP New Media Investment Fund		1,593		1,632			—			1,632			—
K Bank Inc.		20,926		(83,787	)		(746	)		(84,533	)		—


(In millions of Korean won)	December 31, 2018
	Current assets		Non-current assets		Current liabilities		Non-current liabilities
Korea Information & Technology Fund	￦	118,024	￦	326,740	￦	—	￦	—
KT-SB Venture Investment		4,322		4,624		6		—
KT-IBKC Future Investment Fund 1		19,922		—		—		—
KT-CKP New Media Investment Fund		25		540		—		—
K Bank Inc.		2,094,152		90,505		1,901,389		3,185


(In millions of Korean won)	2018
	Operating revenue		Profit (loss) for the year			Other comprehensive income			Total comprehensive income			Dividends received from associates
Korea Information & Technology Fund	￦	59,524	￦	45,110		￦	(13,422	)	￦	31,688		￦	1,842
KT-SB Venture Investment		—		3,056			—			3,056			—
KT-IBKC Future Investment Fund 1		2,665		2,057			—			2,057			—
KT-CKP New Media Investment Fund		371		(629	)		—			(629	)		—
K Bank Inc.		66,787		(79,671	)		1,432			(78,440	)		—

Details of a reconciliation of the summarized financial information to the carrying amount of interests in the associates and joint ventures as at and for the years end December 31, 2017 and 2018, are as follows:


	December 31, 2017
(In millions of Korean won)	Net assets (a)		Percentage of ownership (b)			Share in net assets (c)=(a)x(b)		Intercompany transaction and others (d)		Book amount (c)+(d)
Korea Information & Technology Fund	￦	418,601		33.33	%	￦	139,534	￦	—	￦	139,534
KT-SB Venture Investment		5,884		50.00	%		2,942		—		2,942
KT-IBKC Future Investment Fund 1		21,649		50.00	%		10,825		—		10,825
KT-CKP New Media Investment Fund		4,620		49.67	%		2,294		—		2,294
K Bank Inc.¹		233,775		10.00	%		42,108		—		42,108

1	8% of non-voting convertible stock are excluded from percentage of ownership for K Bank Inc.


	December 31, 2018
(In millions of Korean won)	Net assets (a)		Percentage of ownership (b)			Share in net assets (c)=(a)x(b)		Intercompany transaction and others (d)		Book amount (c)+(d)
Korea Information & Technology Fund	￦	444,764		33.33	%	￦	148,255	￦	—	￦	148,255
KT-SB Venture Investment		8,940		50.00	%		4,470		—		4,470
KT-IBKC Future Investment Fund 1		19,922		50.00	%		9,961		—		9,961
KT-CKP New Media Investment Fund		565		49.70	%		280		—		280
K Bank Inc.¹		280,083		10.00	%		52,655		—		52,655

1	8.8% of non-voting convertible stock are excluded from percentage of ownership for K Bank Inc.

Due to discontinuance of equity method of accounting, the Group has not recognized loss from associates and joint ventures of ￦1,908 million for the year ended December 31, 2018 (for the year ended December 31, 2017: ￦4,391 million). The accumulated comprehensive loss of associates and joint ventures as at December 31, 2018, which was not recognized by the Group is ￦6,475 million (as at December 31, 2017: ￦17,045 million).