Investments in Equity Accounted Investees

12 Months Ended

Dec. 31, 2022

Investments in Equity Accounted Investees

(a)

Associates as of December 31, 2021 and 2022 are as follows:


(In millions of won)
					2021					2022
Associates	Location	Fiscal year end	Date of incorporation	Business	Percentage of ownership			Carrying amount		Percentage of ownership			Carrying amount
Paju Electric Glass Co., Ltd.	Paju, South Korea	December 31	January 2005	Manufacture glass for display		40	%	₩	48,398		40	%	₩	42,784
WooRee E&L Co., Ltd.	Ansan, South Korea	December 31	June 2008	Manufacture LED back light unit packages		13	%		11,947		13	%		13,576
YAS Co., Ltd.	Paju, South Korea	December 31	April 2002	Develop and manufacture deposition equipment for OLEDs		15	%		27,337		15	%		28,976
AVATEC Co., Ltd.	Daegu, South Korea	December 31	August 2000	Process and sell glass for display		15	%		20,708		14	%		20,133
Arctic Sentinel, Inc.	Los Angeles, U.S.A.	March 31	June 2008	Develop and manufacture tablet for kids		10	%		—		10	%		—
Cynora GmbH	Bruchsal, Germany	December 31	March 2003	Develop organic emitting materials for displays and lighting devices		11	%		—		11	%		—

(In millions of won)

2021

2022

Associates

Location

Fiscal year end

Date of incorporation

Business

Percentage of ownership

Carrying
amount

Percentage of ownership

Carrying
amount

Material
   Science Co.,
   Ltd.(*1)

Seoul,
South Korea

December 31

January
2014

Develop, manufacture, and sell materials for display

10

₩

3,679

10

₩

3,650

Nanosys
   Inc.(*2)

Milpitas,
U.S.A.

December 31

July
2001

Develop, manufacture, and sell materials for display

4

14,650

—

—

₩

126,719

₩

109,119

(*1) During 2022, the Controlling Company recognized a reversal of impairment loss of W613 million as finance income for the difference between the carrying amount and the recoverable amount of investments in Material Science Co., Ltd.

(*2) During 2022, Nanosys Inc. was reclassified into the financial asset at fair value through profit or loss as the Group losses its right to appoint members of the board of directors due to the changes in contractual arrangement.

Although the Controlling Company’s respective share interests in WooRee E&L Co., Ltd., YAS Co., Ltd., AVATEC Co., Ltd., Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Controlling Company is able to exercise significant influence through its right to appoint a director to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

As of December 31, 2022, the market value of the Group’s share in WooRee E&L Co., Ltd., YAS Co., Ltd., and AVATEC Co., Ltd., all of which are listed in KOSDAQ, are W6,868 million, W15,680 million and W30,000 million, respectively.

Dividends income recognized from equity method investees for the years ended December 31, 2020, 2021 and 2022 amounted to W8,239 million, W4,068 million and W4,461 million, respectively.

Investments in Equity Accounted Investees. Continued

(b)

Summary of financial information of Paju Electric Glass Co., Ltd., a significant associate of the Group, as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 is as follows:


(In millions of won)	December 31, 2021		December 31, 2022
Total assets	₩	227,616		136,784
Current assets		175,730		98,490
Non-current assets		51,886		38,294
Total liabilities		105,023		29,118
Current liabilities		93,561		28,332
Non-current liabilities		11,462		786


(In millions of won)	2020			2021			2022
Revenue	₩	307,756			425,516			319,264
Profit for the year		9,615			13,364			6,192
Other comprehensive income (loss)		(409	)		(1,258	)		(10,216	)
Total comprehensive income		9,206			12,106			(4,024	)

(c)

Reconciliation from financial information of the significant associate to its carrying value in the consolidated financial statements as of December 31, 2021 and 2022 is as follows:

(i)

As of December 31, 2021


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Goodwill		Intra-group transaction			Impairment loss		Book value
Paju Electric Glass Co., Ltd.	₩	122,593		40	%		49,037		—		(639	)		—		48,398

(ii)

As of December 31, 2022


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Goodwill		Intra-group transaction			Impairment loss		Book value
Paju Electric Glass Co., Ltd.	₩	107,666		40	%		43,066		—		(282	)		—		42,784

(d)

Book value of other associates, in aggregate, as of December 31, 2021 and 2022 is as follows:

(i)

As of December 31, 2021

(In millions of won)

Net profit (loss) of associates (applying ownership interest)

Book value

Profit for the year

Other comprehensive income

Total comprehensive income

Other associates

₩

78,321

2,473

6,867

9,340

(ii)

As of December 31, 2022


(In millions of won)
			Net profit (loss) of associates (applying ownership interest)
	Book value		Profit for the year		Other comprehensive loss			Total comprehensive loss
Other associates	₩	66,335		2,724		(7,516	)		(4,792	)

Investments in Equity Accounted Investees. Continued

(e)

Changes in investments in associates accounted for using the equity method for the years ended December 31, 2021 and 2022 are as follows:


(In millions of won)
		2021
Company		January 1		Dividends received			Equity income on investments		Other comprehensive income (loss)			Other gain		December 31
Associates	Paju Electric Glass Co., Ltd.	₩	47,262		(3,668	)		5,307		(503	)		—		48,398
	Others		67,289		(400	)		2,473		6,867			2,092		78,321
		₩	114,551		(4,068	)		7,780		6,364			2,092		126,719


(In millions of won)
		2022
Company		January 1		Reclassification(*)			Dividends received			Equity income on investments		Other comprehensive loss			Other gain		December 31
Associates	Paju Electric Glass Co., Ltd.	₩	48,398		—			(4,361	)		2,834		(4,087	)		—		42,784
	Others		78,321		(10,620	)		(100	)		2,724		(7,516	)		3,526		66,335
		₩	126,719		(10,620	)		(4,461	)		5,558		(11,603	)		3,526		109,119

(*) During 2022, it was reclassified into the financial asset at fair value through profit or loss as the Group losses its right to appoint members of the board of directors due to the changes in contractual arrangement.