| 21. | Intangible Assets other than Goodwill |
| (1) | Intangible assets as of December 31, 2016 and 2017 are as follows: |
| 2016 | ||||||||||||||||||||||||
| Acquisition cost |
Government grants |
Accumulated amortization |
Accumulated impairment losses |
Book value |
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| In millions of won | ||||||||||||||||||||||||
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Software |
￦ | 458,382 | (595 | ) | (365,161 | ) | — | 92,626 | ||||||||||||||||
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Licenses and franchises |
3,398 | — | (3,398 | ) | — | — | ||||||||||||||||||
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Copyrights, patents rights and other industrial rights |
35,756 | — | (15,675 | ) | — | 20,081 | ||||||||||||||||||
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Mining rights |
549,371 | — | (10,511 | ) | — | 538,860 | ||||||||||||||||||
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Development expenditures |
785,966 | (5,152 | ) | (723,561 | ) | — | 57,253 | |||||||||||||||||
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Intangible assets under Development |
119,474 | (11,090 | ) | — | (3,941 | ) | 104,443 | |||||||||||||||||
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Usage rights of donated assets and other |
426,346 | (21 | ) | (342,244 | ) | — | 84,081 | |||||||||||||||||
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Leasehold rights |
23,350 | — | (18,718 | ) | — | 4,632 | ||||||||||||||||||
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Greenhouse gas emissions rights |
6,283 | — | — | — | 6,283 | |||||||||||||||||||
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Others |
173,213 | — | (88,527 | ) | (12,124 | ) | 72,562 | |||||||||||||||||
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| ￦ | 2,581,539 | (16,858 | ) | (1,567,795 | ) | (16,065 | ) | 980,821 | ||||||||||||||||
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| 2017 | ||||||||||||||||||||||||
| Acquisition cost |
Government grants |
Accumulated amortization |
Accumulated impairment losses |
Book value |
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| In millions of won | ||||||||||||||||||||||||
|
Software |
￦ | 534,191 | (486 | ) | (408,300 | ) | — | 125,405 | ||||||||||||||||
|
Licenses and franchises |
3,398 | — | (3,398 | ) | — | — | ||||||||||||||||||
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Copyrights, patents rights and other industrial rights |
43,857 | — | (19,876 | ) | — | 23,981 | ||||||||||||||||||
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Mining rights |
553,876 | — | (14,243 | ) | — | 539,633 | ||||||||||||||||||
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Development expenditures |
836,996 | (3,702 | ) | (752,478 | ) | — | 80,816 | |||||||||||||||||
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Intangible assets under development |
143,851 | (10,540 | ) | — | (3,941 | ) | 129,370 | |||||||||||||||||
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Usage rights of donated assets and other |
459,682 | (11 | ) | (358,024 | ) | — | 101,647 | |||||||||||||||||
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Leasehold rights |
24,306 | — | (19,262 | ) | — | 5,044 | ||||||||||||||||||
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Others |
297,289 | — | (103,995 | ) | (12,069 | ) | 181,225 | |||||||||||||||||
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| ￦ | 2,897,446 | (14,739 | ) | (1,679,576 | ) | (16,010 | ) | 1,187,121 | ||||||||||||||||
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| (2) | Changes in intangible assets for the years ended December 31, 2016 and 2017 are as follows: |
| 2016 | ||||||||||||||||||||||||||||||||
| Beginning balance |
Acquisition | Disposal | Amortization | Impairment | Others | Ending balance |
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| In millions of won | ||||||||||||||||||||||||||||||||
|
Software |
￦ | 57,886 | 18,267 | — | (32,378 | ) | — | 49,446 | 93,221 | |||||||||||||||||||||||
|
(Government grants) |
(699 | ) | — | — | 249 | — | (145 | ) | (595 | ) | ||||||||||||||||||||||
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Copyrights, patents rights and other industrial rights |
21,875 | 85 | (39 | ) | (2,697 | ) | — | 857 | 20,081 | |||||||||||||||||||||||
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Mining rights |
499,537 | 26,311 | — | (899 | ) | — | 13,911 | 538,860 | ||||||||||||||||||||||||
|
Development expenditures |
51,807 | 212 | — | (21,993 | ) | — | 32,379 | 62,405 | ||||||||||||||||||||||||
|
(Government grants) |
(6,835 | ) | — | — | 2,771 | — | (1,088 | ) | (5,152 | ) | ||||||||||||||||||||||
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Intangible assets under development |
94,886 | 66,588 | — | — | (3,945 | ) | (41,996 | ) | 115,533 | |||||||||||||||||||||||
|
(Government grants) |
(10,483 | ) | (1,597 | ) | — | — | — | 990 | (11,090 | ) | ||||||||||||||||||||||
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Usage rights of donated assets and other |
48,591 | — | — | (15,513 | ) | — | 51,024 | 84,102 | ||||||||||||||||||||||||
|
(Government grants) |
(32 | ) | — | — | 11 | — | — | (21 | ) | |||||||||||||||||||||||
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Leasehold rights |
745 | — | — | (351 | ) | — | 4,238 | 4,632 | ||||||||||||||||||||||||
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Greenhouse gas emissions rights |
805 | 6,283 | — | — | — | (805 | ) | 6,283 | ||||||||||||||||||||||||
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Others |
97,750 | 8,273 | (550 | ) | (8,916 | ) | 3 | (23,998 | ) | 72,562 | ||||||||||||||||||||||
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(Government grants) |
(1 | ) | — | — | 1 | — | — | — | ||||||||||||||||||||||||
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| ￦ | 855,832 | 124,422 | (589 | ) | (79,715 | ) | (3,942 | ) | 84,813 | 980,821 | ||||||||||||||||||||||
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| 2017 | ||||||||||||||||||||||||||||||||
| Beginning balance |
Acquisition | Disposal | Amortization | Impairment | Others | Ending balance |
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| In millions of won | ||||||||||||||||||||||||||||||||
|
Software |
￦ | 93,221 | 12,700 | (5 | ) | (44,809 | ) | — | 64,784 | 125,891 | ||||||||||||||||||||||
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(Government grants) |
(595 | ) | (17 | ) | — | 255 | — | (129 | ) | (486 | ) | |||||||||||||||||||||
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Copyrights, patents rights and other industrial rights |
20,081 | 30 | (7 | ) | (3,350 | ) | — | 7,227 | 23,981 | |||||||||||||||||||||||
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Mining rights |
538,860 | 26,751 | (272 | ) | (4,640 | ) | — | (21,066 | ) | 539,633 | ||||||||||||||||||||||
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Development expenditures |
62,405 | 494 | — | (25,924 | ) | — | 47,543 | 84,518 | ||||||||||||||||||||||||
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(Government grants) |
(5,152 | ) | — | — | 2,811 | — | (1,361 | ) | (3,702 | ) | ||||||||||||||||||||||
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Intangible assets under development |
115,533 | 56,527 | — | — | (20 | ) | (32,130 | ) | 139,910 | |||||||||||||||||||||||
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(Government grants) |
(11,090 | ) | — | — | — | — | 550 | (10,540 | ) | |||||||||||||||||||||||
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Usage rights of donated assets and other |
84,102 | — | — | (14,462 | ) | — | 32,018 | 101,658 | ||||||||||||||||||||||||
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(Government grants) |
(21 | ) | — | — | 10 | — | — | (11 | ) | |||||||||||||||||||||||
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Leasehold rights |
4,632 | — | — | (545 | ) | — | 957 | 5,044 | ||||||||||||||||||||||||
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Greenhouse gas emissions rights |
6,283 | — | — | — | — | (6,283 | ) | — | ||||||||||||||||||||||||
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Others |
72,562 | 47,402 | (377 | ) | (23,018 | ) | 54 | 84,602 | 181,225 | |||||||||||||||||||||||
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(Government grants) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||
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| ￦ | 980,821 | 143,887 | (661 | ) | (113,672 | ) | 34 | 176,712 | 1,187,121 | |||||||||||||||||||||||
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| (3) | Significant specific intangible assets as of December 31, 2016 and 2017 are as follows: |
|
2016 | ||||||||||
|
Type |
Description |
Currency |
Amount |
Remaining useful years | ||||||
| In millions of won and thousands of Australian dollars | ||||||||||
|
Software |
ERP system and others | KRW | 506 | 11 months ~ 1 year and 11 months | ||||||
| SCADA O/S (POWERON RELIANCE) | KRW | 4,206 | 3 years and 1 month | |||||||
|
Copyrights, patents rights and other industrial rights |
Smart technology verification and standard design project conducting right |
KRW | 5,750 | 5 years and 9 months | ||||||
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Mining rights |
Mining right of Bylong mine | AUD | 401,225 | — (*) | ||||||
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Development expenditures |
Development of maintenance system for utility plant |
KRW | 518 | 11 months | ||||||
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Intangible assets under development |
Contributions to ARP NRC DC |
KRW | 41,190 | — | ||||||
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Usage rights of donated assets and others |
Sejong Haengbogdosi sharing charge |
KRW | 44,502 | 9 years and 11 months | ||||||
| Dangjin power plant load facility usage right | KRW | 26,759 | 4 years and 3 months | |||||||
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Others |
Sillim electricity supply facility usage right | KRW | 2,196 | 4 years and 11 months | ||||||
| (*) | Mining rights are amortized using the units-of-production method and the amortization has not commenced yet. |
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2017 | ||||||||||||
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Type |
Description |
Currency | Amount |
Remaining useful lives | ||||||||
| millions of won and thousands of Australian dollars | ||||||||||||
|
Software |
ERP system and others | KRW | 1,135 |
3 years and 2 months ~ 3 years and 4 months | ||||||||
| AMI GATEWAY S/W | KRW | 3,528 | 3 years and 2 months | |||||||||
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Copyrights, patents rights and other industrial rights |
Smart technology verification and standard design project conducting right |
KRW | 11,724 | 4 years and 9 months | ||||||||
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Mining rights |
Mining right of Bylong mine | AUD | 401,225 | — (*) | ||||||||
|
Development expenditures |
Electricity sales information system | KRW | 29,391 | 4 years 3 months | ||||||||
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Intangible assets under development |
Contributions to ARP NRC DC | KRW | 46,458 | — | ||||||||
|
Usage rights of donated assets and others |
Sejong Haengbogdosi sharing charge |
KRW | 40,460 | 8 years and 11 months | ||||||||
| Dangjin power plant load facility usage right | KRW | 20,463 | 3 years 3 months | |||||||||
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Others |
Occupancy and use of public waters | KRW | 103,269 | 18 years 11 months | ||||||||
| (*) | Mining rights are amortized using the units-of-production method and the amortization has not commenced yet. |
| (4) | For the years ended December 31, 2015, 2016 and 2017, the Company recognized research and development expenses of ￦611,220 million, ￦705,504 million and ￦721,437 million, respectively. |