| 36. | Related Parties and Others |
(1) List of related parties
|
Relationship |
Company |
|
|
Ultimate Controlling Entity |
SK Holdings Co., Ltd. | |
|
Joint ventures |
Dogus Planet, Inc. and 3 others | |
|
Associates |
SK hynix Inc. and 40 others | |
|
Others |
The Ultimate Controlling Entity’s subsidiaries and associates, etc. |
(2) Compensation for the key management
The Parent Company considers registered directors who have substantial role and responsibility in planning, operations, and relevant controls of the business as key management. The compensation given to such key management for the years ended December 31, 2017, 2016 and 2015 are as follows:
| (In millions of won) | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
|
Salaries |
￦ | 2,169 | 1,645 | 1,971 | ||||||||
|
Defined benefits plan expenses |
258 | 424 | 626 | |||||||||
|
Share option |
414 | — | — | |||||||||
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| ￦ | 2,841 | 2,069 | 2,597 | |||||||||
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Compensation for the key management includes salaries, non-monetary salaries, and retirement benefits made in relation to the pension plan and compensation expenses related to share options granted.
(3) Transactions with related parties for the years ended December 31, 2017, 2016 and 2015 are as follows:
| (In millions of won) | ||||||||||||||||||
| 2017 | ||||||||||||||||||
|
Scope |
Company |
Operating revenue and others |
Operating expense and others |
Acquisition of property and equipment |
Collection of loans |
|||||||||||||
|
Ultimate Controlling Entity |
SK Holdings Co., Ltd.(*1) |
￦ | 25,049 | 600,600 | 283,556 | — | ||||||||||||
|
Associates |
F&U Credit information Co., Ltd. |
3,431 | 52,150 | 153 | — | |||||||||||||
| HappyNarae Co., Ltd. | 3,025 | 29,276 | 68,472 | — | ||||||||||||||
| SK hynix Inc(*2) | 123,873 | 251 | — | — | ||||||||||||||
| KEB HanaCard Co., Ltd. | 17,873 | 15,045 | — | — | ||||||||||||||
| Others(*3) | 10,720 | 33,389 | 940 | 204 | ||||||||||||||
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|||||||||||
| 158,922 | 130,111 | 69,565 | 204 | |||||||||||||||
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|
Others |
SK Engineering & Construction Co., Ltd. |
5,865 | 1,077 | — | — | |||||||||||||
|
SK Networks Co., Ltd. |
21,694 | 1,220,251 | 671 | — | ||||||||||||||
|
SK Networks Services Co., Ltd. |
510 | 96,949 | 6,346 | — | ||||||||||||||
| SK Telesys Co., Ltd. | 417 | 51,394 | 152,659 | — | ||||||||||||||
| SK TNS Co., Ltd. | 137 | 37,051 | 494,621 | — | ||||||||||||||
| SK Energy Co., Ltd. | 8,505 | 779 | — | — | ||||||||||||||
| SK Gas Co., Ltd. | 2,727 | 4 | — | — | ||||||||||||||
| SK Innovation Co., Ltd. | 7,639 | 950 | — | — | ||||||||||||||
| SK Shipping Co., Ltd. | 3,183 | 35 | — | — | ||||||||||||||
|
Ko-one energy service Co., Ltd |
5,164 | 44 | — | — | ||||||||||||||
| SK infosec Co., Ltd. | 1,185 | 52,634 | 15,648 | — | ||||||||||||||
|
SKC INFRA SERVICE Co., Ltd. |
19 | 46,900 | 47,163 | — | ||||||||||||||
| Others | 18,233 | 28,209 | 17 | — | ||||||||||||||
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| 75,278 | 1,536,277 | 717,125 | — | |||||||||||||||
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Total |
￦ | 259,249 | 2,266,988 | 1,070,246 | 204 | |||||||||||||
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| (*1) | Operating expense and others include ￦203,635 million of dividends paid by the Parent Company. |
| (*2) | Operating revenue and others include ￦87,660 million of dividends received from SK Hynix Inc. which was deducted from the investment in associates. |
| (*3) | Operating revenue and others include ￦6,597 million of dividends received from the Korea IT Fund and others. |
| (In millions of won) | 2016 | |||||||||||||||||||||
|
Scope |
Company |
Operating revenue and others |
Operating expense and others |
Acquisition of property and equipment |
Loans | Collection of loans |
||||||||||||||||
|
Ultimate Controlling Entity |
SK Holdings Co., Ltd.(*1) |
￦ | 23,104 | 652,855 | 235,502 | — | — | |||||||||||||||
|
Associates |
F&U Credit information Co., Ltd. |
2,865 | 47,905 | — | — | — | ||||||||||||||||
| HappyNarae Co., Ltd. | 304 | 15,506 | 38,984 | — | — | |||||||||||||||||
| SK hynix Inc.(*2) | 100,861 | 306 | — | — | — | |||||||||||||||||
|
KEB HanaCard Co., Ltd. |
19,730 | 14,804 | — | — | — | |||||||||||||||||
| Others(*3) | 8,018 | 21,853 | 1,573 | 1,100 | 3,194 | |||||||||||||||||
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| 131,778 | 100,374 | 40,557 | 1,100 | 3,194 | ||||||||||||||||||
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|
Others |
SK Engineering & Construction Co., Ltd. |
5,916 | 1,739 | 10,694 | — | — | ||||||||||||||||
| SK Networks Co., Ltd. | 13,756 | 1,131,567 | — | — | — | |||||||||||||||||
|
SK Networks Services Co., Ltd. |
1,248 | 94,906 | 6,793 | — | — | |||||||||||||||||
| SK Telesys Co., Ltd. | 419 | 52,488 | 142,605 | — | — | |||||||||||||||||
| SK TNS Co., Ltd. | 109 | 48,192 | 387,496 | — | — | |||||||||||||||||
| SK Energy Co., Ltd. | 7,670 | 834 | — | — | — | |||||||||||||||||
| SK Gas Co., Ltd. | 2,500 | 4 | — | — | — | |||||||||||||||||
| SK Innovation Co., Ltd. | 9,757 | 915 | 1,080 | — | — | |||||||||||||||||
| SK Shipping Co., Ltd. | 5,435 | — | — | — | — | |||||||||||||||||
|
Ko-one energy service Co., Ltd |
6,005 | 46 | — | — | — | |||||||||||||||||
| SK infosec Co., Ltd. | 230 | 53,068 | 19,882 | — | — | |||||||||||||||||
|
SKC INFRA SERVICE Co., Ltd. |
43 | 30,663 | 32,141 | — | — | |||||||||||||||||
| Others | 13,437 | 17,626 | 246 | — | — | |||||||||||||||||
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| 66,525 | 1,432,048 | 600,937 | — | — | ||||||||||||||||||
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Total |
￦ | 221,407 | 2,185,277 | 876,996 | 1,100 | 3,194 | ||||||||||||||||
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| (*1) | Operating expense and others include ￦203,635 million of dividends paid by the Parent Company. |
| (*2) | Operating revenue and others include ￦73,050 million of dividends paid by the associate which was deducted from the investment in associates. |
| (*3) | Operating revenue and others include ￦6,082 million of dividends received from the Korea IT Fund. |
| (In millions of won) | ||||||||||||||||||||||
| 2015 | ||||||||||||||||||||||
|
Scope |
Company |
Operating revenue and others |
Operating expense and others |
Acquisition of property and equipment |
Loans | Collection of loans |
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|
Ultimate Controlling Entity |
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*1) |
￦ | 20,260 | 324,078 | 236,414 | — | — | |||||||||||||||
|
SK Holdings Co., Ltd. (formerly, SK Holdings Co., Ltd.)(*2,3) |
1,299 | 212,378 | 117 | — | — | |||||||||||||||||
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| 21,559 | 536,456 | 236,531 | — | — | ||||||||||||||||||
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|
Associates |
F&U Credit information Co., Ltd. |
2,510 | 43,967 | — | — | — | ||||||||||||||||
| HappyNarae Co., Ltd. | 297 | 6,886 | 13,495 | — | — | |||||||||||||||||
| SK hynix Inc.(*4) | 55,949 | 2,384 | — | — | — | |||||||||||||||||
|
SK Wyverns Baseball Club., Ltd. |
3,849 | 18,544 | — | — | 204 | |||||||||||||||||
|
KEB HanaCard Co., Ltd. |
21,414 | 16,057 | — | — | — | |||||||||||||||||
|
Xian Tianlong Science and Technology Co., Ltd. |
— | — | — | 8,287 | — | |||||||||||||||||
| Others(*5) | 6,397 | 11,917 | 1,864 | 690 | — | |||||||||||||||||
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| 90,416 | 99,755 | 15,359 | 8,977 | 204 | ||||||||||||||||||
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|
Other |
SK Engineering & Construction Co., Ltd. |
15,598 | 27,243 | 240,701 | — | — | ||||||||||||||||
| SK Networks Co., Ltd. | 11,923 | 1,257,975 | 2 | — | — | |||||||||||||||||
|
SK Networks Services Co., Ltd. |
10,491 | 94,097 | 6,472 | — | — | |||||||||||||||||
| SK Telesys Co., Ltd. | 397 | 48,900 | 141,870 | — | — | |||||||||||||||||
| SK Energy Co., Ltd. | 9,930 | 978 | — | — | — | |||||||||||||||||
| SK Gas Co., Ltd. | 3,561 | 2 | — | — | — | |||||||||||||||||
| Others | 29,409 | 71,314 | 194,945 | — | — | |||||||||||||||||
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| 81,309 | 1,500,509 | 583,990 | — | — | ||||||||||||||||||
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Total |
￦ | 193,284 | 2,136,720 | 835,880 | 8,977 | 204 | ||||||||||||||||
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| (*1) | On August 1, 2015, SK C&C Co., Ltd., the ultimate controlling entity of the Parent Company merged with SK Holdings Co., Ltd., its equity method investee, and changed its name to SK Holdings Co., Ltd. |
| (*2) | These relates to transactions occurred before July 31, 2015, the date of merger with SK C&C Co., Ltd. |
| (*3) | Operating expense and others include ￦191,416 million of dividends paid by the Parent Company. |
| (*4) | Operating revenue and others include ￦43,830 million of dividends paid by SK hynix Inc. and was deducted from the investment in associates. |
| (*5) | Operating revenue and others include ￦2,103 million and ￦457 million of dividends paid by Korea IT Fund and UniSK, respectively, and was deducted from the investments in associates. |
| (4) | Account balances with related parties as of December 31, 2017 and 2016 are as follows: |
| (In millions of won) | ||||||||||||||
| December 31, 2017 | ||||||||||||||
| Accounts receivable | Accounts payable | |||||||||||||
|
Scope |
Company |
Loans | Accounts receivable-trade and others |
Accounts payable-other and others |
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|
Ultimate Controlling Entity |
SK Holdings Co., Ltd. |
￦ | — | 2,068 | 148,066 | |||||||||
|
Associates |
HappyNarae Co., Ltd. |
— | 15 | 6,865 | ||||||||||
|
F&U Credit information Co., Ltd. |
— | 21 | 1,612 | |||||||||||
|
SK hynix Inc. |
— | 2,803 | 94 | |||||||||||
|
Wave City Development Co., Ltd. |
— | 38,412 | — | |||||||||||
|
Daehan Kanggun BcN Co., Ltd.(*) |
22,147 | — | — | |||||||||||
|
KEB HanaCard Co., Ltd. |
— | 1,427 | 11,099 | |||||||||||
|
S.M. Culture & Contents Co., Ltd. |
— | 448 | 8,963 | |||||||||||
|
Xian Tianlong Science and Technology Co., Ltd. |
7,032 | — | — | |||||||||||
|
Others |
611 | 2,272 | 1,164 | |||||||||||
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| 29,790 | 45,398 | 29,797 | ||||||||||||
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Other |
SK Engineering & Construction Co., Ltd. |
— | 2,033 | 69 | ||||||||||
|
SK Networks. Co., Ltd. |
— | 3,050 | 267,297 | |||||||||||
|
SK Networks Services Co., Ltd. |
— | 15 | 9,522 | |||||||||||
|
SK Telesys Co., Ltd. |
— | 36 | 58,346 | |||||||||||
|
SK TNS Co., Ltd. |
— | 3 | 140,311 | |||||||||||
|
SK Innovation Co., Ltd. |
— | 4,112 | 599 | |||||||||||
|
SK Energy Co., Ltd. |
— | 2,965 | 582 | |||||||||||
|
SK Gas Co., Ltd. |
— | 1,941 | 9 | |||||||||||
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Others |
— | 2,998 | 27,318 | |||||||||||
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| — | 17,153 | 504,053 | ||||||||||||
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Total |
￦ | 29,790 | 64,619 | 681,916 | ||||||||||
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| (*) | The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd as of December 31, 2017. |
| (In millions of won) | ||||||||||||||
| December 31, 2016 | ||||||||||||||
| Accounts receivable | Accounts payable | |||||||||||||
|
Scope |
Company |
Loans | Accounts receivable-trade and others |
Accounts payable-other and others |
||||||||||
|
Ultimate Controlling Entity |
SK Holdings Co., Ltd. |
￦ | — | 3,519 | 149,574 | |||||||||
|
Associates |
HappyNarae Co., Ltd. |
— | 18 | 21,063 | ||||||||||
|
F&U Credit information Co., Ltd. |
— | 34 | 1,328 | |||||||||||
|
SK hynix Inc. |
— | 22,379 | 92 | |||||||||||
|
Wave City Development Co., Ltd. |
— | 38,412 | — | |||||||||||
|
Daehan Kanggun BcN Co., Ltd.(*) |
22,147 | — | — | |||||||||||
|
KEB HanaCard Co., Ltd. |
— | 1,619 | 7,676 | |||||||||||
|
Xian Tianlong Science and Technology Co., Ltd. |
8,287 | — | — | |||||||||||
|
Others |
813 | 4,191 | 945 | |||||||||||
|
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| 31,247 | 66,653 | 31,104 | ||||||||||||
|
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Other |
SK Engineering & Construction Co., Ltd. |
— | 1,808 | 4,975 | ||||||||||
|
SK Networks. Co., Ltd. |
— | 3,254 | 247,728 | |||||||||||
|
SK Networks Services Co., Ltd. |
— | 13 | 13,913 | |||||||||||
|
SK Telesys Co., Ltd. |
— | 20 | 24,918 | |||||||||||
|
SK TNS Co., Ltd. |
— | 3 | 68,276 | |||||||||||
|
SK Innovation Co., Ltd. |
— | 1,350 | 892 | |||||||||||
|
SK Energy Co., Ltd. |
— | 1,213 | 113 | |||||||||||
|
SK Gas Co., Ltd. |
— | 1,769 | 9 | |||||||||||
|
Others |
— | 2,783 | 30,209 | |||||||||||
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| — | 12,213 | 391,033 | ||||||||||||
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Total |
￦ | 31,247 | 82,385 | 571,711 | ||||||||||
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| (*) | The Parent Company has recognized allowances for doubtful accounts on the entire balance of loans to Daehan Kanggun BcN Co., Ltd. as of December 31, 2016. |
| (5) | SK m&service Co., Ltd., a subsidiary of the Parent Company, has entered into a performance agreement with SK Energy Co., Ltd. and provided a blank note to SK Energy Co., Ltd., with regard to this transaction. |
| (6) | As of December 31, 2017, the Group provides with USD 12,240,000 of payment guarantees for the borrowings of the Celcom Planet, the joint ventures of the Group. |
| (7) | There were additional investments in associates and joint ventures during the years ended December 31, 2017 and 2016 as presented in Note 12. |