40. Finance Expenses
(1) Finance expenses for the years ended December 31, 2015, 2016 and 2017 are as follows:
| 2015 | 2016 | 2017 | ||||||||||||||
| In millions of won | ||||||||||||||||
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Interest expense |
￦ | 2,015,684 | 1,752,868 | 1,789,552 | ||||||||||||
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Losses on sale of financial assets |
3,008 | 9 | 2,343 | |||||||||||||
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Impairment of available-for-sale financial assets |
84,370 | 86,703 | 2,713 | |||||||||||||
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Losses on valuation of derivatives |
17,051 | 5,762 | 890,832 | |||||||||||||
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Losses on transaction of derivatives |
37,262 | 101,987 | 198,218 | |||||||||||||
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Losses on foreign currency translation |
743,283 | 406,849 | 207,944 | |||||||||||||
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Losses on foreign currency transaction |
113,723 | 57,889 | 35,175 | |||||||||||||
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Losses on repayment of financial liabilities |
33 | 23,000 | 5 | |||||||||||||
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Other |
1,043 | 2,020 | 1,170 | |||||||||||||
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| ￦ | 3,015,457 | 2,437,087 | 3,127,952 | |||||||||||||
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| (2) | Interest expense included in finance expenses for the years ended December 31, 2015, 2016 and 2017 are as follows: |
| 2015 | 2016 | 2017 | ||||||||||||||
| In millions of won | ||||||||||||||||
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Trade and other payables |
￦ | 84,527 | 68,375 | 57,160 | ||||||||||||
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Short-term borrowings |
14,627 | 6,969 | 35,891 | |||||||||||||
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Long-term borrowings |
103,503 | 91,584 | 87,011 | |||||||||||||
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Debt securities |
2,177,855 | 1,922,900 | 1,698,232 | |||||||||||||
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Other financial liabilities |
538,680 | 482,428 | 491,665 | |||||||||||||
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| 2,919,192 | 2,572,256 | 2,369,959 | ||||||||||||||
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Less: Capitalized borrowing costs |
￦ | (903,508 | ) | (819,388 | ) | (580,407 | ) | |||||||||
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| 2,015,684 | 1,752,868 | 1,789,552 | ||||||||||||||
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Capitalization rates for the years ended December 31, 2015, 2016 and 2017 are 2.36%~4.25%, 2.29%~4.16% and 2.30%~3.60%, respectively.