31.

Finance Income and Costs

(1)	Details of finance income and costs for the years ended December 31, 2018, 2017 and 2016 are as follows:


(In millions of won)
	2018		2017		2016
Finance Income:
Interest income	￦	69,936		76,045		54,353
Gain on sale of accounts receivable — other		20,023		18,548		18,638
Dividends		35,143		12,416		19,161
Gain on foreign currency transactions		17,990		13,676		14,186
Gain on foreign currency translations		2,776		7,110		5,085
Gain on disposal of long-term investment securities		—		4,890		459,349
Gain on valuation of derivatives		6,532		223,943		4,132
Gain on settlement of derivatives		20,399		—		—
Gain relating to financial assets at FVTPL(*)		83,636		33		25
Reversal of impairment loss on available-for-sale financial assets		—		9,900		—
Gain relating to financial liability at fair value through profit or loss		—		—		121

	￦	256,435		366,561		575,050

Finance Costs:
Interest expense	￦	307,319		299,100		290,454
Loss on sale of accounts receivable — trade		—		9,682		—
Loss on foreign currency transactions		38,920		19,263		16,765
Loss on foreign currency translations		2,397		8,419		3,991
Loss on disposal of long-term investment securities		—		36,024		2,919
Loss on settlement of derivatives		12,554		10,031		3,428
Loss relating to financial liability at FVTPL		1,535		678		4,018
Loss relating to financial assets at FVTPL		22,507		—		—
Impairment loss on long-term investment securities		—		14,519		5,255
Other finance costs		—		35,900		—

	￦	385,232		433,616		326,830

(*)	Includes gains on disposal of 200,000 shares of convertible redeemable bonds issued by KRAFTON Co., Ltd. (formerly, Bluehole Inc.) amounting to ￦58,000 million.

(2)	Details of interest income included in finance income for the years ended December 31, 2018, 2017 and 2016 are as follows:


(In millions of won)
	2018		2017		2016
Interest income on cash equivalents and short-term financial instruments	￦	33,808		28,130		20,203
Interest income on installment receivables and others		36,128		47,915		34,150

	￦	69,936		76,045		54,353

(3)	Details of interest expenses included in finance costs for the years ended December 31, 2018, 2017 and 2016 are as follows:


(In millions of won)
	2018		2017		2016
Interest expense on borrowings	￦	10,796		11,774		7,962
Interest expense on debentures		222,195		228,568		239,560
Others		74,328		58,758		42,932

	￦	307,319		299,100		290,454

(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2018, 2017 and 2016 are as follows. Bad debt expense (reversal of loss allowance) for accounts receivable — trade, loans and receivables are presented and explained separately in note 7 and 36.

1) Finance income and costs


(In millions of won)
	2018
	Finance income		Finance costs
Financial Assets:
Financial assets at FVTPL	￦	134,841		22,507
Financial assets at FVOCI		35,143		—
Financial assets at amortized cost		86,032		20,018

		256,016		42,525

Financial Liabilities:
Financial liabilities at FVTPL		—		1,535
Financial liabilities measured at amortized cost		419		328,618
Derivatives designated as hedging instruments		—		12,554

		419		342,707

	￦	256,435		385,232


(In millions of won)
	2017
	Finance income		Finance costs
Financial Assets:
Financial assets at fair value through profit or loss	￦	223,976		—
Available-for-sale financial assets		30,598		86,445
Loans and receivables		111,677		37,040

		366,251		123,485

Financial Liabilities:
Financial liabilities at fair value through profit or loss		—		678
Financial liabilities measured at amortized cost		310		299,422
Derivatives designated as hedging instruments		—		10,031

		310		310,131

	￦	366,561		433,616


(In millions of won)
	2016
	Finance income		Finance costs
Financial Assets:
Financial assets at fair value through profit or loss	￦	4,157		2,791
Available-for-sale financial assets		484,300		8,174
Loans and receivables		86,256		15,810
Derivatives designated as hedging instruments		—		637

		574,713		27,412

Financial Liabilities:
Financial liabilities at fair value through profit or loss		121		4,018
Financial liabilities measured at amortized cost		216		295,400

		337		299,418

	￦	575,050		326,830

2) Other comprehensive income (loss)


(In millions of won)
	2018			2017		2016
Financial Assets:
Financial assets at FVOCI	￦	(130,035	)		—		—
Available-for-sale financial assets		—			158,440		(223,981	)
Derivatives designated as hedging instruments		17,180			1,554		(172	)

		(112,855	)		159,994		(224,153	)

Financial Liabilities:
Derivatives designated as hedging instruments		15,047			21,032		(13,046	)

	￦	(97,808	)		181,026		(237,199	)

(5)	Details of impairment losses for financial assets for the years ended December 31, 2018, 2017 and 2016 are as follows:


(In millions of won)
	2018		2017		2016
Available-for-sale financial assets(*)	￦	—		14,519		5,255
Accounts receivable — trade		38,211		34,584		37,820
Other receivables		7,718		5,793		40,312

	￦	45,929		54,896		83,387

(*)	This is included in other finance costs (See note 31 (1)).