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Related Party Transactions

12 Months Ended

Dec. 31, 2020

35.	Related Party Transaction s

The list of related party of the Group as at December 31, 2020, is as follows:


Relationship		Name of Entry
Associates and joint ventures		Korea Information & Technology Investment Fund (KIF Investment Fund), K-Realty CR-REITs No.1, Boston Global Film & Contents Fund L.P., QTT Global (Group) Company Limited, CU Industrial Development Co., Ltd., KD Living, Inc., Oscar Ent. Co., Ltd., LoginD Co., Ltd., K-REALTY CR-REIT 6, K Bank, Inc., Daiwon Broadcasting Co., Ltd., KT-DSC creative economy youth start-up investment fund, Korea electronic Vehicle charging service, K-REALTY RENTAL HOUSING REIT 2, AI RESEARCH INSTITUTE, KT-IBKC Future Investment Fund 1, Gyeonggi-KT Yoojin Superman Fund, FUNDA Co., Ltd., CHAMP IT Co.,Ltd., Alliance Internet Corp., Little big pictures, Virtual Realm Sendirian Berhad, KT Philippines Co., Ltd., Studio Discovery Co., Ltd , KT Young Entrepreneurs DNA Investment Fund, Hyundai Robotics Co., Ltd., IGIS Professional investors Private Investment Real Estate Investment LLC No 395, KT-Smart Factory Investment Fund

Outstanding balances of receivables and payables in relations to transactions with related parties as at December 31, 2019 and 2020, are as follows:


		December 31, 2019
		Receivables				Payables
(In millions of Korean won)		Trade receivables		Other receivables		Other payables		Lease liabilities
Associates and joint ventures	K- Realty CR-REITs No.1	￦	608	￦	23,100	￦	—	￦	57,907
	K Bank, Inc.		583		13,664		557		—
	Others		434		1,177		711		—

Total		￦	1,625	￦	37,941	￦	1,268	￦	57,907


		December 31, 2020
		Receivables				Payables
(In millions of Korean won)		Trade receivables		Other receivables		Other payables		Lease liabilities
Associates and joint ventures	K- Realty CR-REITs No.1	￦	457	￦	16,200	￦	—	￦	20,857
	K Bank, Inc.		775		32,964		891		—
	Others		72		1,147		858		—

Total		￦	1,304	￦	50,311	￦	1,749	￦	20,857

Significant transactions with related parties for the years ended December 31, 2018, 2019 and 2020, are as follows:


		2018
(In millions of Korean won)		Sales	Purchases 1	Dividend income
Associates and joint ventures	K- Realty CR-REITs No.1	￦ 2,088	￦ 31,984	￦ 8,932
	MOS GS Co., Ltd. 2	493	12,023	8
	MOS Daegu Co., Ltd. 2	229	8,775	8
	MOS Chungcheong Co., Ltd. 2	540	9,159	8
	MOS Gangnam Co., Ltd. 2	333	11,549	10
	MOS GB Co., Ltd. 2	1,378	16,519	12
	MOS BS Co., Ltd. 2	324	11,193	10
	MOS Honam Co., Ltd. 2	331	10,499	10
	K Bank, Inc.	15,705	7,004	—
	NgeneBio 3	3	—	—
	Others	2,888	9,547	2,148

Total		￦ 24,312	￦ 128,252	￦ 11,146

The amounts include acquisition of primarily property and equipment.

It is the amount before excluded from consolidation during the year.

It is the amount before excluded from associates during the year


		2019
(In millions of Korean won)		Sales		Purchases 1
Associates and joint ventures	K- Realty CR-REITs No.1	￦	1,302	￦	—
	K Bank, Inc.		17,815		8,524
	Others		1,498		10,531
Others	K-REALTY CR-REIT 10 1		2,801		—

	Total	￦	23,416	￦	19,055

The amounts include acquisition of property and equipment and others.


		December 31, 2019
(In millions of Korean won)		Acquisition of lease receivables		Acquisition of right-of-use assets		Interest expense		Dividend income
Associates and joint ventures	K- Realty CR-REITs No.1	￦	—	￦	776	￦	2,225	￦	10,928
	Korea Information & Technology Investment Fund (KIF Investment Fund)		—		—		—		4,280
	Others		—		—		—		146

	Total	￦	—	￦	776	￦	2,225	￦	15,354


		2020
(In millions of Korean won)		Sales		Purchases 1
Associates and joint ventures	K- Realty CR-REITs No.1	￦	2,298	￦	—
	Korea Information & Technology Investment Fund (KIF Investment Fund)		—		—
	K Bank, Inc.		15,658		8,227
	Others		809		10,272

	Total	￦	18,765	￦	18,499

The amounts include acquisition of primarily property and equipment.


		December 31, 2020
(In millions of Korean won)		Interest income		Interest expense		Dividend income
Associates and joint ventures	K- Realty CR-REITs No.1		￦ —		￦ 917		￦ 8,061
Associates and joint ventures	Korea Information & Technology Investment Fund (KIF Investment Fund)		—		—		9,241
	K Bank, Inc.		14		—		—
	Others		—		—		43

	Total	￦	14	￦	917	￦	17,345

Key management compensation for the years ended December 31, 2018, 2019 and 2020, consists of:


(In millions of Korean won)	2018		2019		2020
Salaries and other short-term benefits	￦	2,762	￦	2,955	￦	2,086
Post-employment benefits		751		321		390
Stock-based compensation		878		891		5,613

Total	￦	4,391	￦	4,167	￦	8,089

Fund transactions with related parties for the years ended December 31, 2018, 2019 and 2020, are as follows:


	2018
(In millions of Korean won)	Equity contributions in cash and others
Associates and joint ventures
PHI Healthcare Inc. (HooH Healthcare Inc.)	￦	1,000
KT-CKP New Media Investment Fund		(1,229	)
PT. Mitra Transaksi Indonesia 1		1,567
Gyeonggi-KT Yoojin Superman Fund		1,000
KT-DSC creative economy youth start-up investment fund		(1,800	)
KT-IBKC future investment fund 1		(1,050	)
Korea Electronic Vehicle Charging Service		168
K Bank, Inc.		26,725
GE Premier 1st Corporate Restructuring Real Estate Investment Trust Company		(3,423	)
JB Emerging Market Specialty Investment Private Equity Trust No.1		3,960
K-REALTY CR REIT 1		—
Korea Information & Technology Investment Fund		—
MOS GS Co., Ltd. 2		(147	)
MOS Daegu Co., Ltd. 2		(147	)
MOS Chungcheong Co., Ltd. 2		(153	)
MOS Gangnam Co., Ltd. 2		(180	)
MOS GB Co., Ltd. 2		(203	)
MOS BS Co., Ltd. 2		(183	)
MOS Honam Co., Ltd. 2		(206	)
Daiwon Broadcasting Co., Ltd.		—
Boston Global Film & Contents Fund L.P.		(986	)
Gyeonggi-KT Green Growth Fund		—

Total	￦	24,713

It is the amount before reclassification to assets held for sale

It is the amount before included in consolidation during the year.


	December 31, 2019
	Borrowing transaction 1				Equity contributions in cash
(In millions of Korean won)	Borrowing 2		Repayment		Equity contributions in cash
KT-IBKC Future Investment Fund1	￦	—	￦	—	￦	3,750
KT Philippines co. Ltd.		—		—		99
Virtua Realm Sendirian Berhad		—		—		550
K-REALTY CR REIT 1		—		30,385		—
K Bank, Inc		—		—		21,782
KIF Investment Fund		—		—		—
Daiwon Broadcasting Co.,Ltd.		—		—		—
JB Emerging Market Specialty Investment Private Equity Trust No.1		—		—		—
Gyeonggi-KT Yoojin Superman Fund		—		—		1,000
KT-CKP New Media Investment Fund		—		—		(174	)
KT-DSC creative economy youth start-up investment fund		—		—		(1,800	)
KT-Smart Factory Investment Fund		—		—		2,800
KT-SB Venture Investment Fund		—		—		(2,404	)

Total	￦	—	￦	30,385	￦	25,603

Borrowing transactions include lease transactions.

Conversion effect from the adoption of IFRS 16

Lease

on January 1, 2019 has been excluded.


	December 31, 2020
	Borrowing transaction 1				Equity contributions in cash
(In millions of Korean won)	Borrowing		Repayment		Equity contributions in cash
K- Realty CR-REITs No.1	￦	—	￦	20,304	￦	—
Studio Discovery Co. Ltd.		—		—		3,000
KT Young Entrepreneurs DNA Investment Fund		—		—		3,600
KT-Smart Factory Investment Fund		—		—		2,800
KT-CKP New Media Investment Fund		—		—		(109	)
K Bank Inc.		—		—		195,011
Gyeonggi-KT Yoojin Superman Fund		—		—		1,000
Hyundai Robotics Co. Ltd.		—		—		50,000

Total	￦	—	￦	20,304	￦	255,302

Borrowing transactions include lease transactions.

As at December 31, 2020, there is no collateral or payment guarantee provided to or from related parties.