23. PROVISIONS
| (1) | Provisions are as follows (Unit: Korean Won in millions): |
| December 31, 2016 | December 31, 2017 | |||||||
|
Asset retirement obligation |
58,076 | 61,872 | ||||||
|
Provision for guarantee (*1) |
238,117 | 183,247 | ||||||
|
Provision for loan commitments |
87,909 | 66,115 | ||||||
|
Provisions for customer reward credits |
22,093 | 40,445 | ||||||
|
Other provisions (*2) |
22,282 | 58,791 | ||||||
|
|
|
|
|
|||||
|
Total |
428,477 | 410,470 | ||||||
|
|
|
|
|
|||||
| (*1) | Provision for guarantee includes provision for financial guarantee of 67,557 million Won and 71,697 million Won as of December 31, 2016 and 2017, respectively. |
| (*2) | Other provisions consist of provision for litigation, provision for loss recovery, and others. |
| (2) | Changes in provisions except for asset retirement obligation are as follows (Unit: Korean Won in millions): |
| For the year ended December 31, 2015 | ||||||||||||||||||||
| Provision for guarantees |
Provision for loan commitments |
Provisions for customer reward credits |
Other provisions |
Total | ||||||||||||||||
|
Beginning balance |
509,320 | 90,449 | 5,548 | 56,959 | 662,276 | |||||||||||||||
|
Provisions provided |
19,714 | 9,801 | 16,301 | 51,997 | 97,813 | |||||||||||||||
|
Provisions used and others |
(25,262 | ) | 41 | (16,404 | ) | (86,308 | ) | (127,933 | ) | |||||||||||
|
Reversal of unused amount |
(160,032 | ) | (14,976 | ) | — | (43 | ) | (175,051 | ) | |||||||||||
|
Others |
20,401 | (2 | ) | — | (24 | ) | 20,375 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Ending balance |
364,141 | 85,313 | 5,445 | 22,581 | 477,480 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| For the year ended December 31, 2016 | ||||||||||||||||||||
| Provision for guarantees |
Provision for loan commitments |
Provisions for customer reward credits |
Other provisions |
Total | ||||||||||||||||
|
Beginning balance |
364,141 | 85,313 | 5,445 | 22,581 | 477,480 | |||||||||||||||
|
Provisions provided |
4,281 | 8,502 | 23,525 | 8,034 | 44,342 | |||||||||||||||
|
Provisions used and others |
(80,017 | ) | 22 | (8,158 | ) | (11,323 | ) | (99,476 | ) | |||||||||||
|
Reversal of unused amount |
(64,061 | ) | (5,409 | ) | — | — | (69,470 | ) | ||||||||||||
|
Foreign currencies translation adjustments |
— | — | — | 2,990 | 2,990 | |||||||||||||||
|
Transfer(*1) |
— | — | 503 | — | 503 | |||||||||||||||
|
Others |
13,773 | (519 | ) | 778 | — | 14,032 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Ending balance |
238,117 | 87,909 | 22,093 | 22,282 | 370,401 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| For the year ended December 31, 2017 | ||||||||||||||||||||
| Provision for guarantees |
Provision for unused commitments |
Provisions for customer reward credits |
Other provisions |
Total | ||||||||||||||||
|
Beginning balance |
238,117 | 87,909 | 22,093 | 22,282 | 370,401 | |||||||||||||||
|
Provisions provided |
4,876 | 2,028 | 62,593 | 42,042 | 111,539 | |||||||||||||||
|
Provisions used and others |
(24,898 | ) | (68 | ) | (84,979 | ) | (8,014 | ) | (117,959 | ) | ||||||||||
|
Reversal of unused amount |
(60,300 | ) | (23,744 | ) | — | (77 | ) | (84,121 | ) | |||||||||||
|
Foreign currencies translation adjustments |
9 | (10 | ) | — | (249 | ) | (250 | ) | ||||||||||||
|
Transfer(*2) |
— | — | 21,808 | — | 21,808 | |||||||||||||||
|
Others |
25,443 | — | 18,930 | 2,807 | 47,180 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Ending balance |
183,247 | 66,115 | 40,445 | 58,791 | 348,598 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (*1) | As the credits of the affiliates were transferred to the Group, the allowance for the provisions for customer reward credits increased, for the year ended December 31, 2016. |
| (*2) | According to contracts with the third parties, the Group ultimately will be reimbursed for which it has paid out on behalf of customers, which has incurred through their customer loyalty programs. Therefore, when such obligation incurs, the Group recognizes it as “transfer”, but there is no impact on the Group’s expense. |
| (3) | Changes in asset retirement obligation are as follows (Unit: Korean Won in millions): |
| For the year ended December 31, 2015 |
For the year ended December 31, 2016 |
For the year ended December 31, 2017 |
||||||||||
|
Beginning balance |
29,733 | 39,121 | 58,076 | |||||||||
|
Provisions provided |
1,742 | 2,034 | 2,225 | |||||||||
|
Provisions used |
(1,316 | ) | (1,279 | ) | (1,283 | ) | ||||||
|
Amortization |
394 | 464 | 428 | |||||||||
|
Reversal of unused amount |
(179 | ) | (1 | ) | (733 | ) | ||||||
|
Increase in restoration costs and others |
8,747 | 17,737 | 3,159 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Ending balance |
39,121 | 58,076 | 61,872 | |||||||||
|
|
|
|
|
|
| |||||||