Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Textblock 1 [Abstract]

Capitalized Borrowing Costs and Capitalization Rate

(c)Capitalized borrowing costs and capitalization rate for the years ended December 31, 2021, 2022 and 2023 are as follows:

(In millions of won)
	2021			2022			2023
Capitalized borrowing costs	₩	64,606			152,074			258,168
Capitalization rate		3.69	%		3.11	%		5.18	%

Changes in Property, Plant and Equipment

(a)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

(*4) 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, 2023 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, 2023	₩	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 January 1, 2023		—			(4,348,201	)		(42,744,139	)		(719,862	)		—			(151,550	)		(962,598	)		(48,926,350	)
Accumulated impairment    loss as of January 1, 2023		—			(447,145	)		(1,794,407	)		(13,397	)		(356,155	)		(7,553	)		(26,137	)		(2,644,794	)
Book value    as of January 1, 2023	₩	476,045			3,903,946			6,184,199			169,218			9,789,710			112,658			311,157			20,946,933
Additions		—			—			—			—			3,392,876			74,611			—			3,467,487
Depreciation		—			(376,264	)		(2,837,242	)		(75,727	)		—			(68,349	)		(279,200	)		(3,636,782	)
Disposals		(330	)		(758	)		(506,420	)		(1,896	)		—			—			(43,368	)		(552,772	)
Impairment loss (*3)		—			8			(53,513	)		(6	)		—			—			(6,554	)		(60,065	)
Others (*4)		(2,902	)		1,494,070			3,963,010			60,585			(5,900,151	)		—			374,182			(11,206	)
Government grants received		—			—			(7,417	)		—			—			—			—			(7,417	)
Effect of movements    in exchange rates		—			9,189			39,066			964			3,626			326			983			54,154
Book value as of    December 31, 2023	₩	472,813			5,030,191			6,781,683			153,138			7,286,061			119,246			357,200			20,200,332
Acquisition cost as of    December 31, 2023	₩	472,813			10,192,281			52,107,890			942,376			7,571,687			245,149			1,448,688			72,980,884
Accumulated depreciation    as of December 31, 2023	₩	—			(4,715,087	)		(43,466,025	)		(775,953	)		—			(119,804	)		(1,062,377	)		(50,139,246	)
Accumulated impairment    loss as of December 31, 2023	₩	—			(447,003	)		(1,860,182	)		(13,285	)		(285,626	)		(6,099	)		(29,111	)		(2,641,306	)

(*1) As of December 31, 2023, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others mainly consist of tools and equipment.

(*3) Impairment losses of W60,065 million are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

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

9.Property, Plant and Equipment, Continued