Pension Plans

9 Months Ended

Sep. 30, 2018

Retirement Benefits [Abstract]

Pension Plans

NOTE 9 – PENSION PLANS

The Company has a defined benefit plan covering all full time employees who met certain requirements of age, length of service and hours worked per year. Benefits paid to retirees are based upon age at retirement and years of credited service.

Information with respect to changes in benefit obligation and the funded status of the plans is as follows (in thousands of Korean Won):

	September 30, 2018			December 31, 2017
Change in projected benefit liability
Liability at beginning of year	￦	930,098		￦	880,656
Service cost		154,307			226,787
Interest cost		8,381			10,991
Benefit payments		(35,048	)		(146,892	)
Prior service cost		-			-
Remeasurement of defined benefit liabilities		8,639			(41,444	)
Liability at end of year		1,066,377			930,098
Plan assets at end of year		-			-
Funded status and net liability recognized	￦	(1,066,377	)	￦	(930,098	)

The components of benefit expense are as follows (in thousands of Korean Won):

	September 30, 2018		December 31, 2017
Service cost	￦	154,307	￦	226,787
Interest cost		8,381		10,991
Prior service cost		-		-
Total	￦	162,688	￦	237,778

The weighted-average assumptions used to determine projected benefit liability and benefit expense for pension plans are as follows:

	September 30, 2018			December 31, 2017
Discount rate		3.05	%		3.21	%
Expected long-term rate of return on plan assets		N/A			N/A
Rate of compensation increase		2.00	%		2.00	%

The estimated future benefit payments are as follows (in thousands of Korean Won):

Year Ending September 30,
2019	￦	44,555
2020		51,936
2021		55,446
2022		59,937
2023		63,384
Thereafter		2,234,465
Total	￦	2,509,723