Deferred Tax Assets and Liabilities

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Deferred Tax Assets and Liabilities

24. Deferred Tax Assets and Liabilities

(a) Unrecognized deferred tax liabilities

As of December 31, 2019, in relation to the taxable temporary differences on investments in subsidiaries amounting to W69,758 million, the Controlling Company did not recognize deferred tax liabilities since the Controlling Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future.

(b) Unused tax credit carryforwards for which no deferred tax asset is recognized

Realization of deferred tax assets related to tax credit carryforwards which are primarily related to Korea is dependent on whether sufficient taxable income will be generated prior to their expiration. As of December 31, 2019, the amount of unused tax credit carryforwards for which no deferred tax asset is recognized and their expiration dates are as follows:

(In millions of won)
	Total		December 31, 2020		December 31, 2021		December 31, 2022		December 31, 2023		December 31, 2024
Tax credit carryforwards	W	549,056		44,692		70,646		220,135		114,845		98,738

(c) Deferred tax assets and liabilities are attributable to the following:

(In millions of won)	Assets				Liabilities						Total
	December 31, 2018		December 31, 2019		December 31, 2018			December 31, 2019			December 31, 2018			December 31, 2019
Other accounts receivable, net	W	—		—		(1,013	)		(4,364	)		(1,013	)		(4,364	)
Inventories, net		60,606		89,522		—			—			60,606			89,522
Investments in subsidiaries and associates		13,404		—		—			(20,015	)		13,404			(20,015	)
Accrued expenses		126,072		131,196		—			—			126,072			131,196
Property, plant and equipment		445,721		691,599		(1,495	)		(21,690	)		444,226			669,909
Intangible assets		3,468		21,886		(14,588	)		(10,759	)		(11,120	)		11,127
Provisions		32,468		59,875		—			(4,446	)		32,468			55,429
Gain or loss on foreign currency translation, net		13		—		—			—			13			—
Others		20,850		137,667		(7,665	)		(328	)		13,185			137,339
Tax loss carryforwards		134,845		607,432		—			—			134,845			607,432
Tax credit carryforwards		308,393		38,337		—			—			308,393			38,337
Deferred tax assets (liabilities)	W	1,145,840		1,777,514		(24,761	)		(61,602	)		1,121,079			1,715,912

(d) Changes in deferred tax assets and liabilities for the years ended December 31, 2018 and 2019 are as follows:

(In millions of won)	January 1, 2018			Profit or loss			Other comprehensive loss			December 31, 2018			Profit or loss			Other comprehensive loss			December 31, 2019
Other accounts receivable, net	W	(1,441	)		428			—			(1,013	)		(3,351	)		—			(4,364	)
Inventories, net		34,550			26,056			—			60,606			28,916			—			89,522
Defined benefit liabilities, net		2,375			(1,206	)		(1,169	)		—			35,235			(35,235	)		—
Subsidiaries and associates		29,061			(15,657	)		—			13,404			(33,419	)		—			(20,015	)
Accrued expenses		183,903			(57,831	)		—			126,072			5,124			—			131,196
Property, plant and equipment		409,928			34,298			—			444,226			225,683			—			669,909
Intangible assets		(21,189	)		10,069			—			(11,120	)		22,247			—			11,127
Provisions		27,018			5,450			—			32,468			22,961			—			55,429
Gain or loss on foreign currency translation, net		13			—			—			13			(13	)		—			—
Others		27,562			(14,377	)		—			13,185			124,154			—			137,339
Tax loss carryforwards		—			134,845			—			134,845			472,587			—			607,432
Tax credit carryforwards		268,926			39,467			—			308,393			(270,056	)		—			38,337
Deferred tax assets (liabilities)	W	960,706			161,542			(1,169	)		1,121,079			630,068			(35,235	)		1,715,912