XML 162 R59.htm IDEA: XBRL DOCUMENT
v3.20.1

Intangible Assets (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Text block [abstract] |
Summary of Intangible Assets | Changes in intangible assets for the years ended December 31, 2018 and 2019, are as follows:
|  | 2018 |
(In millions of Korean won) |  | Goodwill |  |  | Development costs |  |  | Software |  |  | Frequency usage rights |  |  | Others |  |  | Total |
Acquisition cost |  |  | 474,908 |  |  |  | 1,643,886 |  |  |  | 893,500 |  |  |  | 2,530,341 |  |  |  | 1,171,378 |  |  |  | 6,714,013 |
Less: Accumulated amortization (including accumulated impairment loss and others) |  |  | (306,028 | ) |  |  | (1,225,327 | ) |  |  | (703,259 | ) |  |  | (1,165,399 | ) |  |  | (681,297 | ) |  |  | (4,081,310 | )
Beginning, net |  | ￦ | 168,880 |  |  | ￦ | 418,559 |  |  | ￦ | 190,241 |  |  | ￦ | 1,364,942 |  |  | ￦ | 490,081 |  |  | ￦ | 2,632,703 |
Acquisition and capital expenditure |  |  | — |  |  |  | 56,670 |  |  |  | 29,800 |  |  |  | 1,110,865 |  |  |  | 133,837 |  |  |  | 1,331,172 |
Disposal and termination |  |  | — |  |  |  | (3,436 | ) |  |  | (736 | ) |  |  | (558 | ) |  |  | (10,687 | ) |  |  | (15,417 | )
Amortization |  |  | — |  |  |  | (147,304 | ) |  |  | (72,185 | ) |  |  | (318,815 | ) |  |  | (91,222 | ) |  |  | (629,526 | )
Impairment |  |  | (518 | ) |  |  | — |  |  |  | (222 | ) |  |  | — |  |  |  | (12,256 | ) |  |  | (12,996 | )
Inclusion in scope of consolidation |  |  | 67,696 |  |  |  | — |  |  |  | 2,073 |  |  |  | — |  |  |  | 23,950 |  |  |  | 93,719 |
Others |  |  | — |  |  |  | 10,621 |  |  |  | 16,973 |  |  |  | 66 |  |  |  | (20,192 | ) |  |  | 7,468 |
Ending, net |  | ￦ | 236,058 |  |  | ￦ | 335,110 |  |  | ￦ | 165,944 |  |  | ￦ | 2,156,500 |  |  | ￦ | 513,511 |  |  | ￦ | 3,407,123 |
Acquisition cost |  |  | 542,074 |  |  |  | 1,680,372 |  |  |  | 947,312 |  |  |  | 3,641,231 |  |  |  | 1,253,281 |  |  |  | 8,064,270 |
Less : Accumulated amortization (including accumulated impairment loss and others) |  |  | (306,016 | ) |  |  | (1,345,262 | ) |  |  | (781,368 | ) |  |  | (1,484,731 | ) |  |  | (739,770 | ) |  |  | (4,657,147 | )
|  | 2019 |
(In millions of Korean won) |  | Goodwill |  |  | Development costs |  |  | Software |  |  | Frequency usage rights |  |  | Others |  |  | Total |
Acquisition cost |  |  | 542,074 |  |  |  | 1,680,372 |  |  |  | 947,312 |  |  |  | 3,641,231 |  |  |  | 1,253,281 |  |  |  | 8,064,270 |
Less: Accumulated amortization (including accumulated impairment loss and others) |  |  | (306,016 | ) |  |  | (1,345,262 | ) |  |  | (781,368 | ) |  |  | (1,484,731 | ) |  |  | (739,769 | ) |  |  | (4,657,146 | )
Beginning, net |  | ￦ | 236,058 |  |  | ￦ | 335,110 |  |  | ￦ | 165,944 |  |  | ￦ | 2,156,500 |  |  | ￦ | 513,512 |  |  | ￦ | 3,407,124 |
Changes in accounting policy 1 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (26,207 | ) |  |  | (26,207 | )
Acquisition and capital expenditure |  |  | — |  |  |  | 47,903 |  |  |  | 30,965 |  |  |  | — |  |  |  | 99,826 |  |  |  | 178,694 |
Disposal and termination |  |  | — |  |  |  | (3,019 | ) |  |  | (1,267 | ) |  |  | (284 | ) |  |  | (11,109 | ) |  |  | (15,679 | )
Amortization |  |  | — |  |  |  | (115,839 | ) |  |  | (68,222 | ) |  |  | (399,382 | ) |  |  | (77,262 | ) |  |  | (660,705 | )
Impairment |  |  | (605 | ) |  |  | (1,333 | ) |  |  | (1,807 | ) |  |  | (3,035 | ) |  |  | (55,118 | ) |  |  | (61,898 | )
Others |  |  | 117 |  |  |  | 9,812 |  |  |  | 11,768 |  |  |  | 142 |  |  |  | (9,131 | ) |  |  | 12,708 |
Ending, net |  | ￦ | 235,570 |  |  | ￦ | 272,634 |  |  | ￦ | 137,381 |  |  | ￦ | 1,753,941 |  |  | ￦ | 434,511 |  |  | ￦ | 2,834,037 |
Acquisition cost |  |  | 541,596 |  |  |  | 1,661,372 |  |  |  | 978,139 |  |  |  | 3,622,327 |  |  |  | 1,193,048 |  |  |  | 7,996,482 |
Less : Accumulated amortization (including accumulated impairment loss and others) |  |  | (306,026 | ) |  |  | (1,388,738 | ) |  |  | (840,758 | ) |  |  | (1,868,386 | ) |  |  | (758,537 | ) |  |  | (5,162,445 | )
1 | With the application of IFRS 16, intangible assets were reclassified to right-of-use assets (Note 40).
Summary of Goodwill Allocated to Each Cash-Generation Unit |
(In millions of Korean won) |  |  |
Operating Segment |  | Cash generating Unit |  | Amount |
ICT 6 |  | Mobile services 1 |  | ￦ | 65,057 |
Finance |  | BC Card Co., Ltd. 2 |  |  | 41,234 |
Others |  | GENIE Music Corporation (KT Music Corporation) 3 |  |  | 53,871 |
|  | PlayD Co., Ltd. (N SEARCH MARKETING Co., Ltd.) 4 |  |  | 42,745 |
|  | KT Telecop Co., Ltd. 5 |  |  | 15,418 |
|  | KT MOS Bukbu Co., Ltd and others |  |  | 17,245 |
|  | Total |  | ￦ | 235,570 |
| 1 | The recoverable amounts of mobile business are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of 0.0% was applied for the cash flows expected to be incurred after five years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate 0.42% based on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rates 6.21% used reflected specific risks relating to the relevant CGU. As a result of the impairment test, the Group concluded that the carrying amount of CGU does not exceed the recoverable amount. Accordingly, the Group did not recognize an impairment loss on goodwill on mobile business for the years ended December 31, 2017, 2018 and 2019.
| 2 | The recoverable amounts of BC Card Co., Ltd. are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of 0.0% was applied for the cash flows expected to be incurred after five years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate 0.79% based on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rates 6.00% used reflected specific risks relating to the relevant CGU. As a result of the impairment test, the Group concluded that the carrying amount of CGU does not exceed the recoverable amount. Accordingly, the Group did not recognize an impairment loss on goodwill on BC Card Co., Ltd. for the years ended December 31, 2017, 2018 and 2019.
| 3 | The recoverable amount of GENIE Music Corporation (KT Music Corporation) is calculated based on fair value less cost to sell.
| 4 | The recoverable amounts of PlayD Co., Ltd. (N search Marketing Co., Ltd.) are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of 1.0% was applied for the cash flows expected to be incurred after five years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate 2.57% based on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rates 8.68% used reflected specific risks relating to the relevant CGUs. As a result of the impairment test, the Group concluded that the carrying amount of CGUs does not exceed the recoverable amount. Accordingly, the Group did not recognize an impairment loss on goodwill on PlayD Co., Ltd. (N search Marketing Co., Ltd.) for the years ended December 31, 2017, 2018 and 2019.
| 5 | The recoverable amounts of KT Telecop Co., Ltd. are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of 1.0% was applied for the cash flows expected to be incurred after five years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate 5.74% based on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rates 6.87% used reflected specific risks relating to the relevant CGUs. As a result of the impairment test, the Group concluded that the carrying amount of CGU does not exceed the recoverable amount. Accordingly, the Group did not recognize an impairment loss on goodwill on KT Telecop Co., Ltd. for the years ended December 31, 2018 and 2019.
| 6 | The Group performed its impairment assessment for long-lived assets attributed to the Information and Communication Technology (“ICT”) reporting segment, which includes the Cash-Generating Units of Mobile, Fixed line, and Corporate Services (the “CGUs”). The Group compared the carrying value of each CGU to the estimated recoverable amount. The recoverable amounts of ICT reporting segment are calculated based on value-in use calculations. These calculations use discounted cash flow projections for the next five years based on financial budgets. A terminal growth rate of 0.0% was applied for the cash flows expected to be incurred after five years. This growth rate does not exceed the average growth rate of the industry which the cash-generating unit belongs in. The Group estimated its revenue growth rate 0.42% ~ 3.84% based on past performance and its expectation of future market changes. In addition, management estimated the cash flow based on past performance and its expectation of market growth, and the discount rate 6.21%. Accordingly, the Group did not recognize an impairment loss on ICT reporting segment for the years ended December 31, 2017, 2018 and 2019.

X
- Definition The disclosure of detailed information about intangible assets. [Refer: Intangible assets other than goodwill] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2019-01-01 -Paragraph 118 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=38&code=ifrs-tx-2019-en-r&anchor=para_118&doctype=Standard -URIDate 2019-03-27 + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutIntangibleAssetsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of information for cash-generating units. [Refer: Cash-generating units [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 36 -IssueDate 2019-01-01 -Paragraph 134 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=36&code=ifrs-tx-2019-en-r&anchor=para_134&doctype=Standard -URIDate 2019-03-27 + Details
Name: | ifrs-full_DisclosureOfInformationForIndividualAssetOrCashgeneratingUnitWithSignificantAmountOfGoodwillOrIntangibleAssetsWithIndefiniteUsefulLivesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | kt_TextBlockAbstract
Namespace Prefix: | kt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration