The Nature of Expenses and Others

12 Months Ended

Dec. 31, 2019

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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, 2017, 2018 and 2019 are as follows:

(In millions of won)
	2017			2018			2019
Changes in inventories	W	(62,299	)		(341,120	)		640,048
Purchases of raw materials, merchandise and others		13,548,848			12,863,812			12,580,796
Depreciation and amortization		3,214,576			3,554,565			3,695,051
Outsourcing		771,697			825,393			865,935
Labor		3,258,427			3,222,110			3,072,877
Supplies and others		1,239,915			1,010,352			813,262
Utility		865,347			899,075			896,112
Fees and commissions		692,125			722,134			695,245
Shipping		249,820			240,288			196,002
Advertising		236,440			112,400			193,436
Warranty		251,131			234,928			418,942
Travel		92,976			104,009			95,074
Taxes and dues		91,806			123,210			109,473
Impairment loss on property, plant, and equipment		—			43,601			1,550,430
Impairment loss on intangible assets		1,809			82			249,450
Others		917,242			713,990			625,504
	W	25,369,860			24,328,829			26,697,637

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