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Business Combination
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Business Combination
41.
Business Combination
Kt cloud Co., Ltd., a subsidiary of the Group, acquired
100,000
common shares
(100
%) of SPARK AND ASSOCIATES INC. for
￦
20,328
 million on October 4, 2022 to secure business capabilities of the car cloud business and also gain first mover advantage in the multi/hybrid cloud market.
The details of major business combinations that occurred for the year ended December 31, 2022, are as follows
:
 
(in millions of Korean won)
  
Major transfer business
 
  
Business
combination
date
 
  
Transfer price
 
SPARK AND ASSOCIATES INC.
  
 
Network service industry
 
  
 
Oct. 4, 2022
 
  
 
20,328
 
 
 
The values of assets and liabilities acquired on the acquisition date from major business combinations for the year ended December 31, 2022, are as follows:
 
(in millions of Korean won)
  
SPARK AND
ASSOCIATES INC.
 
I. Total transfer price (A)
   
￦
 20,328  
II. Amount recognized as identifiable assets and liabilities
         
Fair value of identifiable assets
      11,446  
Cash and cash equivalents
      427  
Trade and other receivables, net
      1,039  
Property and equipment, net
      23  
Intangible assets, net
      9,715  
Other assets
      242  
Fair value of identifiable liabilities
      2,793  
Trade and other payables
      410  
Current income tax liabilities
      32  
Net defined benefit liabilities
      21  
Other liabilities
      2,330  
Total identifiable net assets (B)
      8,653  
III. Non-controlling interest (C)
      —    
IV. Fair value of net assets acquired (D=B-C)
      8,653  
    
 
 
  
V. Goodwill (E=A-D)
   
￦
 11,675  
    
 
 
  
Intangible assets additionally identified by the Group as a result of major business combinations for the year
 
ended December 31, 2022, are as follows:
 
(in millions of Korean won)
   
Goodwill
     
Customer
relationship
  
SPARK AND ASSOCIATES INC.
   
￦
 11,675     
￦
 9,715  
Operating revenue and net profit and loss before elimination of intercompany transactions of the acquired companies transferred through major business combinations for the year ended December 31, 2022, are as follows:
 
(in millions of Korean won)
 
After business
combination
 
 
2022
1
 
 
 
Operating
revenue
 
 
Profit (loss) for
the year
 
 
Operating
revenue
 
 
Profit (loss) for
the year
 
SPARK AND ASSOCIATES INC.
  
￦
 1,637    
￦
 413    
￦
 6,856    
￦
 670  

 
1
Operating revenue and profit or loss of the entity for the current reporting period as though th
e acquisition date f
or all business combinations that occurred during the year had been as at the beginning of the annual reporting period.