Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Textblock 1 [Abstract]

Capitalized Borrowing Costs and Capitalization Rate

(c)Capitalized borrowing costs and capitalization rate for the years ended December 31, 2020, 2021 and 2022 are as follows:

(In millions of won)
	2020			2021			2022
Capitalized borrowing costs	₩	191,876			64,606			152,074
Capitalization rate		4.14	%		3.69	%		3.11	%

Changes in Property, Plant and Equipment

(a)Changes in property, plant and equipment for the year ended December 31, 2021 are as follows:

(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction-in- progress (*1)			Right-of-use asset			Others (*2)			Total
Acquisition cost    as of January 1, 2021	₩	442,822			7,420,854			48,166,361			735,329			6,122,364			184,036			1,021,641			64,093,407
Accumulated depreciation    as of January 1, 2021		—			(3,457,052	)		(37,581,293	)		(600,912	)		—			(69,130	)		(697,134	)		(42,405,521	)
Accumulated impairment    loss as of January 1, 2021		—			(116,596	)		(1,317,770	)		(8,250	)		(76,637	)		(3,999	)		(24,931	)		(1,548,183	)
Book value as    of January 1, 2021	₩	442,822			3,847,206			9,267,298			126,167			6,045,727			110,907			299,576			20,139,703
Additions		—			—			—			—			3,651,064			63,655			—			3,714,719
Depreciation		—			(394,416	)		(3,188,694	)		(72,065	)		—			(62,983	)		(259,095	)		(3,977,253	)
Disposals		(8,975	)		(17,655	)		(30,046	)		(44	)		(6,899	)		(7	)		(40,501	)		(104,127	)
Impairment loss		—			3,897			(15,287	)		(3	)		620			—			(7,191	)		(17,964	)
Others(*3)		—			704,753			1,784,733			110,083			(2,910,055	)		—			299,534			(10,952	)
Government grants received		—			(5,491	)		(80,432	)		(60	)		—			—			—			(85,983	)
Effect of movements    in exchange rates		—			167,236			682,295			15,041			11,141			8,294			16,296			900,303
Book value as of    December 31, 2021	₩	433,847			4,305,530			8,419,867			179,119			6,791,598			119,866			308,619			20,558,446
Acquisition cost as of    December 31, 2021	₩	433,847			8,583,015			50,288,095			863,241			6,867,667			235,436			1,184,889			68,456,190
Accumulated depreciation    as of December 31, 2021	₩	—			(4,068,333	)		(40,637,254	)		(675,638	)		—			(111,382	)		(853,778	)		(46,346,385	)
Accumulated impairment    loss as of December 31, 2021	₩	—			(209,152	)		(1,230,974	)		(8,484	)		(76,069	)		(4,188	)		(22,492	)		(1,551,359	)

(*1) As of December 31, 2021, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others mainly consist of tools and equipment

(*3) Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

9.Property, Plant and Equipment. Continued

(b)Changes in property, plant and equipment for the year ended December 31, 2022 are as follows:

(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction-in- progress (*1)			Right-of-use asset			Others (*2)			Total
Acquisition cost    as of January 1, 2022	₩	433,847			8,583,015			50,288,095			863,241			6,867,667			235,436			1,184,889			68,456,190
Accumulated depreciation    as of January 1, 2022		—			(4,068,333	)		(40,637,254	)		(675,638	)		—			(111,382	)		(853,778	)		(46,346,385	)
Accumulated impairment    loss as of January 1, 2022		—			(209,152	)		(1,230,974	)		(8,484	)		(76,069	)		(4,188	)		(22,492	)		(1,551,359	)
Book value    as of January 1, 2022	₩	433,847			4,305,530			8,419,867			179,119			6,791,598			119,866			308,619			20,558,446
Additions		—			—			—			—			5,709,828			72,567			—			5,782,395
Depreciation		—			(373,089	)		(3,182,783	)		(83,747	)		—			(76,370	)		(269,796	)		(3,985,785	)
Disposals		(3,573	)		—			(172,547	)		(477	)		—			—			(36,958	)		(213,555	)
Impairment loss(*3)		—			(252,997	)		(672,061	)		(6,912	)		(292,564	)		(3,439	)		(29,282	)		(1,257,255	)
Others(*4)		45,771			196,747			1,732,712			78,497			(2,425,047	)		(420	)		334,931			(36,809	)
Government grants received		—		-				(57,503	)	-			-			-			-				(57,503	)
Effect of movements    in exchange rates		—			27,755			116,514			2,738			5,895			454			3,643			156,999
Book value as of    December 31, 2022	₩	476,045			3,903,946			6,184,199			169,218			9,789,710			112,658			311,157			20,946,933
Acquisition cost as of    December 31, 2022	₩	476,045			8,699,292			50,722,745			902,477			10,145,865			271,761			1,299,892			72,518,077
Accumulated depreciation    as of December 31, 2022	₩	—			(4,348,201	)		(42,744,139	)		(719,862	)		—			(151,550	)		(962,598	)		(48,926,350	)
Accumulated impairment    loss as of December 31, 2022	₩	—			(447,145	)		(1,794,407	)		(13,397	)		(356,155	)		(7,553	)		(26,137	)		(2,644,794	)

(*1) As of December 31, 2022, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others mainly consist of tools and equipment

(*3) During 2022, Display(Large OLED) CGU was assessed for impairment, and impairment losses amounting to W1,236,563 million are recognized as other expenses. Details of the impairment loss is explained in Note 10(d).

(*4) Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

9.Property, Plant and Equipment. Continued