Share option

12 Months Ended

Dec. 31, 2018

Text block [abstract]

Share option

26. Share option

(1) The terms and conditions related to the grants of the share options under the share option program are as follows:

	Parent Company
	Series
	1-1	1-2	1-3	2(*)
Grant date		March 24, 2017		February 20, 2018
Types of shares to be issued	Registered common shares
Grant method	Reissue of treasury shares
Number of shares (in shares)	22,168	22,168	22,168	1,358
Exercise price (in won)	246,750	266,490	287,810	254,120
Exercise period	Mar. 25, 2019 ~ Mar. 24, 2022	Mar. 25, 2020 ~ Mar. 24, 2023	Mar. 25, 2021 ~ Mar. 24, 2024	Feb. 21, 2020~ Feb. 20, 2023
Vesting conditions	2 years’ service from the grant date	3 years’ service from the grant date	4 years’ service from the grant date	2 years’ service from the grant date

(*) Parts of the grant that have not met the vesting conditions have been forfeited during the year ended December 31, 2018.

	One Store Co., Ltd.
Grant date	April 27, 2018
Types of shares to be issued	Common shares of One Store Co., Ltd.
Grant method	Issuance of new shares
Number of shares (in shares)	1,032,000
Exercise price (in won)	5,390
Exercise period	Apr. 28, 2020~ Apr. 27, 2024
Vesting conditions	2 years’ service from the grant date

(2) Share compensation expense recognized during the year ended December 31, 2018 and the remaining share compensation expense to be recognized in subsequent periods are as follows:

(In millions of won)
	Share compensation expense
During the year ended December 31, 2017	￦	414
During the year ended December 31, 2018		789
In subsequent periods		804
	￦	2,007

(3) The Group used binomial option pricing model in the measurement of the fair value of the share options at grant date and the inputs used in the model are as follows:

	Parent Company												One Store Co., Ltd.
	1-1			1-2			1-3			2
Risk-free interest rate		1.86	%		1.95	%		2.07	%		2.63	%		2.61	%
Estimated option’s life		5 years			6 years			7 years			5 years			6 years
Share price(*) (Closing price on the preceding day in won)		262,500			262,500			262,500			243,500			4,925
Expected volatility		13.38	%		13.38	%		13.38	%		16.45	%		9.40	%
Expected dividends		3.80	%		3.80	%		3.80	%		3.70	%		0.00	%
Exercise price (in won)		246,750			266,490			287,810			254,120			5,390
Per share fair value of the option (in won)		27,015			20,240			15,480			23,988			566

(*) One Store Co., Ltd., a subsidiary of the Parent Company, is an unlisted stock, and the share price is calculated using the discounted cash flow model.