Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Carrying Amount and Fair Value of Financial Instruments by Category

Carrying amount and fair value of financial instruments by category as at December 31, 2018 and 2019, are as follows:


	December 31, 2018				December 31, 2019
(In millions of Korean won)	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and cash equivalents	￦	2,703,422		1	￦	2,305,894		1
Trade and other receivables
Financial assets measured at amortized cost 2		5,425,996		1		5,748,459		1
Financial assets at fair value through other comprehensive income		1,097,348		1,097,348		1,256,266		1,256,266
Other financial assets
Financial assets measured at amortized cost		484,271		1		441,804		1
Financial assets at fair value through profit or loss		777,685		777,685		632,324		632,324
Financial assets at fair value through other comprehensive income		326,157		326,157		557,342		557,342
Derivative financial assets for hedging		29,843		29,843		58,576		58,576

Total	￦	10,844,722			￦	11,000,665

Financial liabilities
Trade and other payables	￦	8,357,520		1	￦	8,679,698		1
Borrowings		6,648,293		1		7,298,867		1
Other financial liabilities
Financial liabilities at amortized cost		99,330		1		129,945		1
Financial liabilities at fair value through profit or loss		7,758		7,758		38		38
Derivative financial liabilities for hedging		57,308		57,308		20,096		20,096

Total	￦	15,170,209			￦	16,128,644

The Group did not conduct fair value estimation since the book amount is a reasonable approximation of the fair value

With the application of IFRS 7, lease receivables is excluded from fair value disclosure.

Summary of Fair Value Non of Financial Instruments

Fair value hierarchy classifications of the financial assets and financial liabilities that are measured at fair value or its fair value is disclosed as at December 31, 2018 and 2019, are as follows:


(In millions of Korean won)	December 31, 2018
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	￦	—	￦	1,097,348	￦	—	￦	1,097,348
Other financial assets
Financial assets at fair value through profit or loss		121		613,964		163,600		777,685
Financial assets at fair value through other comprehensive income		8,861		5,760		311,536		326,157
Derivative financial assets for hedging		—		29,843		—		29,843
Disclosed fair value

Investment properties		—		—		1,821,061		1,821,061

Total	￦	8,982	￦	1,746,915	￦	2,296,197	￦	4,052,094

Liabilities
Other financial liabilities
Financial liabilities at fair value through profit or loss	￦	—	￦	—	￦	7,758	￦	7,758
Derivative financial liabilities for hedging		—		47,125		10,183		57,308

Total	￦	—	￦	47,125	￦	17,941	￦	65,066


(In millions of Korean won)	December 31, 2019
(In millions of Korean won)	Level 1		Level 2		Level 3		Total
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	￦	—	￦	1,256,266	￦	—	￦	1,256,266
Other financial assets
Financial assets at fair value through profit or loss		232		136,951		495,141		632,324
Financial assets at fair value through other comprehensive income		6,738		508,550		42,054		557,342
Derivative financial assets for hedging		—		40,788		17,788		58,576
Disclosed fair value

Investment properties		—		—		2,304,583		2,304,583

Total	￦	6,970	￦	1,942,555	￦	2,859,566	￦	4,809,091

Liabilities
Other financial liabilities
Financial liabilities at fair value through profit or loss	￦	—	￦	38	￦	—	￦	38
Derivative financial liabilities for hedging		—		20,096		—		20,096

Total	￦	—	￦	20,134	￦	—	￦	20,134

Summary of Changes in Level 3 of Fair Value Hierarchy for Recurring Fair Value Measurements

Details of changes in Level 3 of the fair value hierarchy for the recurring fair value measurements as at December 31, 2018 and 2019, are as follows:


	2018
	Financial assets						Financial liabilities
(In millions of Korean won)	Financial assets at fair value through profit or loss			Financial assets at fair value through other comprehensive income			Financial liabilities at fair value through profit or loss 2		Derivative financial liabilities for hedging 1
Beginning balance	￦	97,547		￦	238,517		￦	5,051	￦	17,725
Changes in accounting policy		32,745			2,085			—		—
Purchases		21,365			8,802			—		—
Reclassification		1,581			(296	)		—		—
Changes in scope of consolidation		—			364			—		—
Sales		(1,852	)		(1,099	)		—		—
Amount recognized in profit or loss 1,2		12,214			89			2,707		(17,255	)
Amount recognized in other comprehensive income 1		—			63,074			—		9,713

Ending balance	￦	163,600		￦	311,536		￦	7,758	￦	10,183

Amount recognized in profit or loss of derivative financial liabilities for hedging are comprised of both gain on valuation of derivatives and accumulated other comprehensive loss.

Amount recognized in profit or loss of derivative financial liabilities for hedging are comprised of loss on valuation of derivatives.


	2019
	Financial assets						Financial liabilities
(In millions of Korean won)	Financial assets at fair value through profit or loss			Financial assets at fair value through other comprehensive income			Derivative financial assets (liabilities) for hedging			Financial liabilities at fair value through profit or loss
Beginning balance	￦	163,600		￦	311,536		￦	(10,183	)	￦	7,758
Purchases		584,671			6,081			—			—
Reclassification		225,873			(444,782	)		—			—
Disposal		(485,419	)		(941	)		—			(9,734	)
Amount recognized in profit or loss		6,416			—			14,462			1,976
Amount recognized in other comprehensive income		—			170,160			13,509			—

Ending balance	￦	495,141		￦	42,054		￦	17,788		￦	—

Summary of Valuation Techniques and Inputs

Valuation techniques and inputs used in the recurring,

non-recurring

fair value measurements and disclosed fair values categorized within Level 2 and Level 3 of the fair value hierarchy as at December 31, 2018 and 2019, are as follows:


	December 31, 2018
(In millions of Korean won)	Fair value		Level		Valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	￦	1,097,348		2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		777,564		2,3	DCF Model, Adjusted net asset model
Financial assets at fair value through other comprehensive income		317,296		2,3	DCF Model
Derivative financial assets for hedging		29,843		2	DCF Model
Investment properties		1,821,061		3	DCF Model
Liabilities
Other financial liabilities
Financial liabilities at fair value through profit or loss	￦	7,758		3	DCF Model, Comparable Company Analysis
Derivative financial liabilities for hedging		57,308		2,3	Hull-White model, DCF Model


	December 31, 2019
(In millions of Korean won)	Fair value		Level		Valuation techniques
Assets
Trade and other receivables
Financial assets at fair value through other comprehensive income	￦	1,256,266		2	DCF Model
Other financial assets
Financial assets at fair value through profit or loss		632,092		2,3	DCF Model, Adjusted net asset model
Financial assets at fair value through other comprehensive income		550,604		2,3	DCF Model
Derivative financial assets for hedging		58,576		2,3	Hull-White model, DCF Model
Investment properties		2,304,583		3	DCF Model
Liabilities
Other financial liabilities
Financial liabilities at fair value through profit or loss	￦	38		3	DCF Model, Comparable Company Analysis
Derivative financial liabilities for hedging		20,096		2,3	Hull-White model, DCF Model

Summary of Details and Changes of Total Deferred Difference

In relation to this, details and changes of the total deferred difference for the years ended December 31, 2018 and 2019, are as follows:


	2018						2019
(In millions of Korean won)	Derivatives used for hedging			Derivative held for trading			Derivatives used for hedging			Derivative held for trading
I. Beginning balance	￦	6,532		￦	(5,647	)	￦	5,107		￦	(2,824	)
II. New transactions		—			—			—			—
III. Recognized at fair value through profit or loss		(1,425	)		2,823			(1,425	)		2,824

IV. Ending balance (I+II+III)	￦	5,107		￦	(2,824	)	￦	3,682		￦	—