The Nature of Expenses and Others

12 Months Ended

Dec. 31, 2023

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The Nature of Expenses and Others

18.The Nature of Expenses and Others

The classification of expenses by nature for the years ended December 31, 2021, 2022 and 2023 are as follows:

(In millions of won)
	2021			2022		2023
Changes in inventories	₩	(1,179,232	)		477,457		345,190
Purchases of raw materials, merchandise    and others		15,207,659			13,521,132		10,810,985
Depreciation and amortization		4,500,701			4,557,457		4,213,742
Outsourcing		776,755			1,096,681		922,565
Labor		3,795,943			3,669,275		3,439,608
Supplies and others		1,235,473			1,212,142		938,568
Utility		1,029,953			1,189,105		1,193,025
Fees and commissions		789,885			834,449		704,763
Shipping		345,204			276,253		124,770
Advertising		126,335			108,315		76,404
Warranty		216,873			251,395		101,846
Travel		59,519			66,428		66,201
Taxes and dues		141,131			144,038		129,784
Others		720,467			2,322,067		1,043,238
	₩	27,766,666			29,726,194		24,110,689

Total expenses consist of cost of sales, selling and administrative expenses, research and development expenses and other expenses, excluding foreign exchange differences.