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Operating Expenses | 12 Months Ended
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Dec. 31, 2019
Text block [abstract] |
Operating Expenses |
27. | Operating Expenses
Operating expenses for the years ended December 31, 2017, 2018 and 2019, are as follows:
(In millions of Korean won) |  | 2017 |  |  | 2018 |  |  | 2019 |
Salaries and wages |  | ￦ | 3,568,456 |  |  | ￦ | 3,845,842 |  |  | ￦ | 3,974,233 |
Depreciation |  |  | 2,745,969 |  |  |  | 2,674,205 |  |  |  | 2,530,252 |
Depreciation of right-of-use assets |  |  | — |  |  |  | — |  |  |  | 452,057 |
Amortization of intangible assets |  |  | 618,533 |  |  |  | 607,527 |  |  |  | 656,611 |
Commissions |  |  | 1,085,865 |  |  |  | 1,080,168 |  |  |  | 1,115,477 |
Interconnection charges |  |  | 640,612 |  |  |  | 579,613 |  |  |  | 534,025 |
International interconnection fee |  |  | 214,058 |  |  |  | 226,627 |  |  |  | 240,254 |
Purchase of inventories |  |  | 4,053,693 |  |  |  | 4,414,094 |  |  |  | 4,453,820 |
Changes of inventories |  |  | (187,439 | ) |  |  | (432,607 | ) |  |  | 282,957 |
Sales commission |  |  | 2,201,778 |  |  |  | 1,942,841 |  |  |  | 2,315,731 |
Service cost |  |  | 1,428,405 |  |  |  | 1,540,869 |  |  |  | 1,610,261 |
Utilities |  |  | 323,313 |  |  |  | 323,411 |  |  |  | 332,816 |
Taxes and dues |  |  | 279,574 |  |  |  | 285,131 |  |  |  | 276,815 |
Rent |  |  | 448,772 |  |  |  | 460,377 |  |  |  | 193,357 |
Insurance premium |  |  | 69,384 |  |  |  | 73,654 |  |  |  | 82,404 |
Installation fee |  |  | 146,783 |  |  |  | 143,669 |  |  |  | 155,178 |
Advertising expenses |  |  | 197,114 |  |  |  | 157,675 |  |  |  | 150,166 |
Research and development expenses |  |  | 168,635 |  |  |  | 176,758 |  |  |  | 165,028 |
Card service cost |  |  | 3,094,894 |  |  |  | 3,112,618 |  |  |  | 3,066,766 |
Others |  |  | 1,379,438 |  |  |  | 1,122,718 |  |  |  | 1,290,807 |
Total |  | ￦ | 22,477,837 |  |  | ￦ | 22,335,190 |  |  | ￦ | 23,879,015 |
Details of salaries and wages for the years ended December 31, 2017, 2018 and 2019, are as follows:
(In millions of Korean won) |  | 2017 |  |  | 2018 |  |  | 2019 |
Short-term employee benefits |  | ￦ | 3,297,944 |  |  | ￦ | 3,505,214 |  |  | ￦ | 3,663,337 |
Post-employment benefits(Defined benefit plan) |  |  | 209,770 |  |  |  | 232,045 |  |  |  | 240,310 |
Post-employment benefits(Defined contribution plan) |  |  | 45,936 |  |  |  | 48,210 |  |  |  | 57,170 |
Share-based payment |  |  | 7,660 |  |  |  | 8,439 |  |  |  | 6,398 |
Others |  |  | 6,949 |  |  |  | 51,934 |  |  |  | 7,018 |
Total |  | ￦ | 3,568,259 |  |  | ￦ | 3,845,842 |  |  | ￦ | 3,974,233 |

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