Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue From Contracts With Customers [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

(1)Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows:

	2021		2020		2019
	(In millions of Korean won)
Service contract
Micro-transaction and subscription revenue
Online game	₩	64,382	₩	76,110	₩	30,751
Mobile game	164,646		251,960		279,255
	229,028		328,070		310,006
Royalties and license fees
Online game	10,988		13,435		11,571
Mobile game	155,518		46,364		22,648
	166,506		59,799		34,219
Others	18,404		18,084		16,742
	413,938		405,953		360,967
Timing of satisfaction of performance obligations
At a point in time	8		—		175
Over time	413,930		405,953		360,792
	₩	413,938	₩	405,953	₩	360,967

(2)Accounts receivables, incremental costs of obtaining a contract, and contract liabilities related to contracts with customers as of December 31, 2021 and 2020 are as follows:

	2021		2020
	(In millions of Korean won)
Accounts receivables	₩	52,615	₩	59,761
Incremental costs of obtaining a contract (Prepaid expenses)	861		1,277
Contract liabilities (Deferred revenue)
Micro-transaction and subscription revenue	12,622		12,886
Royalties and license fees	116		307
Website and application development	841		600
	₩	13,579	₩	13,793

(3)Changes in contract liabilities for the years ended December 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
	(In millions of Korean won)
Balance at January 1	₩	13,793	₩	10,846	₩	20,074
Increase related to micro-transaction and subscription revenue	26,380		29,124		66,232
Increase related to royalties and license fees	204		14,330		—
Increase related to website and application development contract	8,456		4,580		5,038
Decrease upon satisfaction of performance obligations - micro-transaction and subscription revenue	(26,645)		(24,980)		(69,507)
Decrease upon satisfaction of performance obligations -royalties and license fees	(394)		(15,426)		(5,407)
Decrease due to termination of contract	—		—		(413)
Decrease upon satisfaction of performance obligations - website and application development	(8,215)		(4,681)		(5,171)
Balance at December 31	₩	13,579	₩	13,793	₩	10,846

The amount of revenue recognized from previous period’s contract liabilities satisfied during the year ended December 31, 2021 is Korean Won 13,692 million.

(4)Transaction price allocated to unsatisfied performance obligations as of December 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
	(In millions of Korean won)
Micro-transaction and subscription revenue
Online game	₩	9,374	₩	8,418	₩	5,358
Mobile game	3,248		4,468		3,384
	12,622		12,886		8,742
Royalties and license fees
Online game	96		286		573
Mobile game	21		21		830
	117		307		1,403
Website and application development	840		600		701
Total	₩	13,579	₩	13,793	₩	10,846

The Group’s management expects to recognize 99.3% (Korean Won 13,481 million) of the transaction price allocated to contracts that have not been performed as of December 31, 2021 as revenue within 12 months. The remaining 0.7% (Korea

Won 98 million) is expected to be recognized as revenue thereafter. The amounts disclosed above do not include variable consideration which is constrained.

(5)Details of incremental costs of obtaining a contract recognized as assets as of and for the years ended December 31, 2021 and 2020 are as follows:

	December 31, 2021		December 31, 2020
	(In millions of Korean won)
Incremental costs of obtaining a contract	₩	861	₩	1,277

Details of incremental costs of obtaining a contract recognized as cost of revenues as of December 31, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
	(In millions of Korean won)
Incremental costs of obtaining a contract recognized as cost of revenues	₩	1,277	₩	998	₩	2,036