Financial Instruments by Category

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about financial instruments [abstract]

(1)Carrying amounts of financial instruments by category as of December 31, 2023 and 2022 are as follows:


	December 31, 2023		December 31, 2022
Financial assets at amortized cost	(In millions of Korean won)
Cash and cash equivalents	₩	184,082	₩	169,877
Short-term financial instruments	277,215		167,000
Accounts receivable, net	71,213		77,257
Other receivables, net	7		12
Other current financial assets(*1)	4,439		3,370
Other non-current financial assets(*2)	1,824		1,676
Financial assets at fair value through profit or loss
Other non-current financial assets	—		500
Total	₩	538,780	₩	419,692

(*1) Other current financial assets consist of accrued income and deposits.

(*2) Other non-current financial assets consist of deposits.


	December 31, 2023		December 31, 2022
Financial liabilities at amortized cost	(In millions of Korean won)
Accounts payable (*)	₩	57,615	₩	70,170
Long-term accounts payable	677		374
Accrued expenses (*)	395		429
Other current liabilities	4,225		2,906
Other non-current liabilities	2,337		3,057
Total	₩	65,249	₩	76,936

(*)Annual leave allowance, bonus accruals, etc. that should be paid to employees are excluded.

(2)Net income and expenses from financial instruments for the years ended December 31, 2023, 2022 and 2021 are as follows:


	2023		2022		2021
Financial assets at amortized cost	(In millions of Korean won)
Interest income	₩	11,487	₩	4,496	₩	1,355
Differences in foreign currency	(1,654)		2,101		2,135
Financial assets at fair value through profit or loss
Interest income	5		5		28
Financial liabilities at amortized cost
Interest expense	(162)		(127)		(115)
Differences in foreign currency	(1,344)		(1,301)		(821)

(3)Fair Value Hierarchy

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

•Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

•Level 2: all inputs other than quoted prices included in Level 1 that are observable (either directly that is, prices, or indirectly that is, derived from prices) for the asset or liability;

•Level 3: unobservable inputs for the asset or liability.

The fair value of financial instruments traded in an active market is determined based on the quoted market price as of the end of the reporting period. If the quoted prices are readily and regularly available through exchanges, sellers, brokers, industry groups, rating agencies or regulators and such prices represent actual market transactions that occur regularly between independent parties, they are considered active markets. These products are included in Level 1.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques use as much market observable information as possible and use the least amount of group-specific information. At this time, if all the significant input variables required to measure the fair value of a good are observable, the good is included in Level 2.

If more than one significant input variable is not based on observable market information, the item is included in Level 3.

The valuation techniques used to measure the fair value of a financial instrument include:

•Market price or dealer price of a similar financial instrument

•The fair value of derivative instruments is determined by discounting the amount to present value using the leading exchange rate as of the end of the reporting period

For the other financial instruments, the Group applied other valuation techniques such as discounted cash flow, etc.