Changes in intangible assets for the years ended December 31, 2016 and 2017, are as follows:
| 2016 | ||||||||||||||||||||||||
| (In millions of Korean won) | Goodwill | Development costs1 |
Software |
Frequency usage rights |
Others | Total | ||||||||||||||||||
|
Acquisition cost |
449,379 | 1,487,420 | 805,387 | 2,591,229 | 1,109,085 | 6,442,500 | ||||||||||||||||||
|
Less: Accumulated amortization (including accumulated impairment loss and others) |
(107,038 | ) | (1,025,877 | ) | (574,003 | ) | (1,618,459 | ) | (517,372 | ) | (3,842,749 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Beginning, net |
￦ | 342,341 | ￦ | 461,543 | ￦ | 231,384 | ￦ | 972,770 | ￦ | 591,713 | ￦ | 2,599,751 | ||||||||||||
|
Acquisition and capital expenditure |
— | 36,075 | 35,631 | 978,309 | 74,312 | 1,124,327 | ||||||||||||||||||
|
Disposal and termination |
— | (8,600 | ) | (1,928 | ) | — | (16,397 | ) | (26,925 | ) | ||||||||||||||
|
Amortization |
— | (162,682 | ) | (78,643 | ) | (273,790 | ) | (84,606 | ) | (599,721 | ) | |||||||||||||
|
Impairment |
(131,600 | ) | — | (46 | ) | — | (3,618 | ) | (135,264 | ) | ||||||||||||||
|
Inclusion in scope of consolidation |
42,745 | — | 2,462 | — | 16,015 | 61,222 | ||||||||||||||||||
|
Others |
— | 8,340 | 8,278 | — | (17,205 | ) | (587 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Ending, net |
￦ | 253,486 | ￦ | 334,676 | ￦ | 197,138 | ￦ | 1,677,289 | ￦ | 560,214 | ￦ | 3,022,803 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Acquisition cost |
492,105 | 1,483,205 | 838,532 | 2,531,654 | 1,154,993 | 6,500,489 | ||||||||||||||||||
| (238,619 | ) | (1,148,529 | ) | (641,394 | ) | (854,365 | ) | (594,779 | ) | (3,477,686 | ) | |||||||||||||
| 2017 | ||||||||||||||||||||||||
| (In millions of Korean won) | Goodwill | Development costs1 |
Software |
Frequency usage rights |
Others | Total | ||||||||||||||||||
|
Acquisition cost |
492,105 | 1,483,205 | 838,532 | 2,531,654 | 1,154,993 | 6,500,489 | ||||||||||||||||||
|
Less: Accumulated amortization (including accumulated impairment loss and others) |
(238,619 | ) | (1,148,529 | ) | (641,394 | ) | (854,365 | ) | (594,779 | ) | (3,477,686 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Beginning, net |
￦ | 253,486 | ￦ | 334,676 | ￦ | 197,138 | ￦ | 1,677,289 | ￦ | 560,214 | ￦ | 3,022,803 | ||||||||||||
|
Acquisition and capital expenditure |
— | 247,863 | 60,475 | — | 78,373 | 386,711 | ||||||||||||||||||
|
Disposal and termination |
— | (14,806 | ) | (548 | ) | — | (11,859 | ) | (27,213 | ) | ||||||||||||||
|
Amortization |
— | (151,718 | ) | (73,174 | ) | (311,146 | ) | (99,112 | ) | (635,150 | ) | |||||||||||||
|
Impairment |
(84,606 | ) | — | (3 | ) | — | (31,486 | ) | (116,095 | ) | ||||||||||||||
|
Inclusion in scope of consolidation |
— | (332 | ) | (3,216 | ) | — | (1,374 | ) | (4,922 | ) | ||||||||||||||
|
Others |
— | 2,876 | 9,569 | (1,201 | ) | (4,674 | ) | 6,570 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Ending, net |
￦ | 168,880 | ￦ | 418,559 | ￦ | 190,241 | ￦ | 1,364,942 | ￦ | 490,081 | ￦ | 2,632,704 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Acquisition cost |
474,908 | 1,643,886 | 893,500 | 2,530,341 | 1,171,378 | 6,714,014 | ||||||||||||||||||
|
Less; Accumulated amortization (including accumulated impairment loss and others) |
(306,028 | ) | (1,225,327 | ) | (703,259 | ) | (1,165,399 | ) | (681,297 | ) | (4,081,310 | ) | ||||||||||||
| 1 | The Company’s development costs mainly consist of acquisition costs to develop a combined billing system and an information management system. |