Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Disclosure of leases [text block]

27.Leases

(a)Leases as lessee

The Group leases buildings, vehicles, machinery and equipment and others. Information about leases for which the Group is a lessee is presented below.

(i)Right-of-use assets

Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property, plant and equipment as of December 31, 2021 and 2022 (see Note 9(a)).

Changes in right-of-use assets for the years ended December 31, 2021 and 2022 are as follows:

(In millions of won)
	2021
	Buildings and structures			Land			Machinery and equipment			Vehicles			Others			Total
Balance at January 1, 2021	₩	55,166			47,411			1,859			5,970			501			110,907
Additions and others		54,728			39			870			7,620			398			63,655
Depreciation		(51,368	)		(2,985	)		(1,469	)		(6,745	)		(416	)		(62,983	)
Disposals		(7	)		—			—			—			—			(7	)
Gain or loss on foreign currency translation		(2,352	)		9,952			70			217			407			8,294
Balance at December 31, 2021	₩	56,167			54,417			1,330			7,062			890			119,866

(In millions of won)
	2022
	Buildings and structures			Land			Machinery and equipment			Vehicles			Others			Total
Balance at January 1, 2022	$	56,167			54,417			1,330			7,062			890			119,866
Additions and others		60,515			460			456			11,033			103			72,567
Depreciation		(63,494	)		(3,014	)		(1,136	)		(8,288	)		(438	)		(76,370	)
Impairments		(2,175	)		(721	)		(3	)		(501	)		(39	)		(3,439	)
Others	-				(420	)	-			-			-				(420	)
Gain or loss on foreign currency translation		20			1,082			(49	)		(804	)		205			454
Balance at December 31, 2022	$	51,033			51,804			598			8,502			721			112,658

27.Leases. Continued

(ii)Amounts recognized in profit or loss from leases other than leases recorded as right-of-use assets for the years ended December 31, 2020, 2021 and 2022 are as follows:

(In millions of won)
	2020			2021			2022
Interest on lease liabilities	₩	(4,456	)		(3,664	)		(3,656	)
Income from sub-leasing right-of-use assets		896			712			541
Expenses relating to short-term leases		(977	)		(824	)		(785	)
Expenses relating to leases of low-value assets		(231	)		(577	)		(632	)

(iii)Changes in lease liabilities for the years ended December 31, 2021 and 2022 are as follows:

(In millions of won)
	2021			2022
Balance at January 1	₩	83,431			84,326
Additions and others		64,172			67,102
Interest expense		3,664			3,656
Repayment of liabilities		(66,941	)		(82,296	)
Balance at December 31	₩	84,326			72,788

(b)Leases as lessor

(i)Finance lease

During the years ended December 31, 2021 and 2022, the Group recognized interest income on lease receivables of W712 million and W533 million, respectively.

The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date.

(In millions of won)
	December 31, 2021			December 31, 2022
6 months or less		3,688			3,593
6-12 months		3,688			3,593
1-2 years		7,376			4,191
2-5 years		4,303			—
Total undiscounted lease receivable		19,055			11,377
Unearned finance income		(846	)		(319	)
Net Investment in the lease		18,209			11,058

(ii)Operating lease

The Group leases out investment property and a portion of property, plant and equipment as operating leases (see Note 9 and 11).