Investments in Equity Accounted Investees

12 Months Ended

Dec. 31, 2023

Investments in Equity Accounted Investees

(a)

Associates as of December 31, 2022 and 2023 are as follows:


(In millions of won)
					2022					2023
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	%	₩	42,784		40	%	₩	24,200
WooRee E&L Co., Ltd. (*1)	Ansan, South Korea	December 31	June 2008	Manufacture LED back light unit packages		13	%		13,576		13	%		7,106
YAS Co., Ltd.	Paju, South Korea	December 31	April 2002	Develop and manufacture deposition equipment for OLEDs		15	%		28,976		16	%		28,564
AVATEC Co., Ltd.	Daegu, South Korea	December 31	August 2000	Process and sell glass for display		14	%		20,133		14	%		20,871
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	%		—		10	%		—

         (In millions of won)

         Associates

         Location

         Fiscal year end

         Date of incorporation

         Business

         Percentage of ownership

         Carrying
amount

         Percentage of ownership

         Carrying
amount

Material
   Science Co.,
   Ltd.(*2)(*3)

Seoul,
South Korea

December 31

January
2014

Develop, manufacture, and sell materials for display

10

₩

3,650

16

₩

3,588

₩

109,119

₩

84,329

(*1) During 2023, the Controlling Company recognized an impairment loss of W5,662 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in WooRee E&L Co., Ltd.

(*2) During 2023, the Controlling Company recognized an impairment loss of W1,146 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in Material Science Co., Ltd.

(*3) During 2023, due to the investee’s acquisition of treasury shares, the Group's shareholding ratio increased from 10% to 16%.

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, 2023, 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 W7,106 million, W21,320 million and W29,160 million, respectively. Dividends income recognized from equity method investees for the years ended December 31, 2021, 2022 and 2023 amounted to W4,068 million, W4,461 million and W15,200 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, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 are as follows:


(In millions of won)	December 31, 2022		December 31, 2023
Total assets	₩	136,784		109,992
Current assets		98,490		94,705
Non-current assets		38,294		15,287
Total liabilities		29,118		47,875
Current liabilities		28,332		47,459
Non-current liabilities		786		416


(In millions of won)	2021			2022			2023
Revenue	₩	425,516			319,264			184,880
Profit(loss) for the year		13,364			6,192			(2,655	)
Other comprehensive loss		(1,258	)		(10,216	)		(4,894	)
Total comprehensive income (loss)		12,106			(4,024	)		(7,549	)

(c)

Reconciliation from financial information of the significant associate to its carrying value in the consolidated financial statements as of December 31, 2022 and 2023 are as follows:

(i)

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

(ii)

As of December 31, 2023


(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.	₩	62,117		40	%		24,847		—		(647	)		—		24,200

(d)

Book value of other associates, in aggregate, as of December 31, 2022 and 2023 are as follows:

(i)

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	)

(ii)

As of December 31, 2023


(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	₩	60,129		(1,634	)		(722	)		(2,356	)

Investments in Equity Accounted Investees, Continued

(e)

Changes in investments in associates accounted for using the equity method for the years ended December 31, 2022 and 2023 are as follows:


(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, certain investment was reclassified into the financial asset at fair value through profit or loss as the Group lost its right to appoint members of the board of directors due to the changes in contractual arrangement.


(In millions of won)
		2023
Company		January 1		Dividends received			Equity income on investments			Other comprehensive loss			Other gain			December 31
Associates	Paju Electric Glass Co., Ltd.	₩	42,784		(15,200	)		(1,427	)		(1,957	)		—			24,200
	Others		66,335		—			(1,634	)		(722	)		(3,850	)		60,129
		₩	109,119		(15,200	)		(3,061	)		(2,679	)		(3,850	)		84,329