KT CORP | CIK:0000892450 | 3

  • Filed: 4/30/2018
  • Entity registrant name: KT CORP (CIK: 0000892450)
  • Generator: Donnelley Financial Solutions
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/892450/000119312518141554/0001193125-18-141554-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/892450/000119312518141554/kt-20171231.xml
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    • ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory

    13. Investments in Associates and Joint Ventures

    Details of associates as of December 31, 2017, are as follows:

     

         Percentage of ownership (%)     Location    Date of
    financial
    statements    		  
         2016     2017             

    Korea Information & Technology Fund

    		      33.3 %      33.3 %    Korea      31-Dec  

    KT-SB Venture Investment1

    		      50.0 %      50.0 %    Korea      31-Dec  

    Mongolian Telecommunications1

    		      40.0 %      —       Mongolia      31-Dec  

    KT Wibro Infra Co., Ltd.

    		      26.2 %      —       Korea      31-Dec  

    KT-IBKC Future Investment Fund 11

    		      50.0 %      50.0 %    Korea      31-Dec  

    KT-CKP New Media Investment Fund

    		      49.7 %      49.7 %    Korea      31-Dec  

    K Bank Inc.1

    		      —         10.0 %    Korea      31-Dec  

     

    1 At the end of the reporting period, even though the Group (KT-SB Venture Investment Fund and KT-IBKC Future Investment Fund 1) has 50% ownership, the equity method of accounting has been applied as the Group, which is a limited partner of investment fund, cannot participate in determining the operating and financial policies. As of December 31, 2017, the entire shares of Mongolian Telecommunications is classified as assets held for sale, and KT Wibro Infra Co., Ltd. was liquidated during 2017. Also, 8% of non-voting convertible stock are excluded from percentage of ownership for K bank Inc.

     

    Changes in investments in associates and joint ventures for the years ended December 31, 2016 and 2017, are as follows:

     

        2016  
    (In millions of Korean won)   Beginning     Acquisition
    (Disposal)    		     Share of net profit
    from associates and
    joint ventures1    		     Impairment     Others     Ending  

    Korea Information & Technology Fund

    		   ￦ 127,583     ￦ —       ￦ 7,446     ￦ —       ￦ (60 )    ￦ 134,969  

    KT-SB Venture Investment

    		     4,861       —         (125 )      —         —         4,736  

    Mongolian Telecommunications

    		     7,483       —         32       —         (1,271 )      6,244  

    KT Wibro Infra Co., Ltd.

    		     69,328       —         —         (17,128 )      —         52,200  

    KT-CKP New Media Investment Fund

    		     3,860       —         594       —         —         4,454  

    Others

    		     56,914       29,052       (5,400 )      —         906       81,472  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
      ￦ 270,029     ￦ 29,052     ￦ 2,547     ￦ (17,128 )    ￦ (425 )    ￦ 284,075  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

        2017  
    (In millions of Korean won)   Beginning     Acquisition
    (Disposal)    		     Share of net profit
    from associates and
    joint ventures1    		     Impairment     Others     Ending  

    Korea Information & Technology Fund

    		   ￦ 134,969     ￦ —       ￦ 4,275     ￦ —       ￦ 290     ￦ 139,534  

    KT-SB Venture Investment

    		     4,736       (1,069 )      (725 )      —         —         2,942  

    Mongolian Telecommunications

    		     6,244       —         (348 )      —         (5,896 )      —    

    KT Wibro Infra Co., Ltd.

    		     52,200       (52,200 )      —         —         —         —    

    KT-IBKC Future Investment Fund 1

    		     3,621       7,500       (296 )      —         —         10,825  

    KT-CKP New Media Investment Fund

    		     4,454       (2,970 )      810       —         —         2,294  

    K Bank Inc.

    		     —         26,543       (17,244 )      —         32,809       42,108  

    Others

    		     77,851       3,178       (1,952 )      (3,662 )      6,313       81,728  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
      ￦ 284,075     ￦ (19,018 )    ￦ (15,480 )    ￦ (3,662 )    ￦ 33,516     ￦ 279,431  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    1 KT investment Co., Ltd., a subsidiary of the Group, recognized its share in net profit from associates and joint ventures as operating revenue and expense. These include its share in gain from associates and joint ventures of ￦1,588 million (2016: ￦52 million) recognized as operating income during the period.

     

    Summarized financial information of associates and joint ventures as of and for the years ended December 31, 2016 and 2017, is as follows:

     

    (In millions of Korean won)    2016  
         Current
    assets    		     

    Non-current

    assets

    		      Current
    liabilities    		     

    Non-current

    liabilities

    		  

    Korea Information & Technology Fund

    		    ￦ 154,651      ￦ 250,257      ￦ —        ￦ —    

    KT-SB Venture Investment

    		      1,009        8,704        242        —    

    Mongolian Telecommunications

    		      9,852        9,055        3,296        —    

    KT Wibro Infra Co., Ltd.

    		      274,811        6        4,996        52  

    KT-CKP New Media Investment Fund

    		      1,801        7,170        4        —    

     

    (In millions of Korean won)    2016  
         Operating
    revenue    		      Profit (loss)
    for the year    		     Other
    comprehensive
    income    		     Total
    comprehensive
    income    		     Dividend
    received from
    associates    		  

    Korea Information & Technology Fund

    		    ￦ 26,942      ￦ 22,338     ￦ (9,425 )    ￦ 12,913     ￦ 3,201  

    KT-SB Venture Investment

    		      2        (251 )      —         (251 )      —    

    Mongolian Telecommunications

    		      10,336        81       3,178       3,259       —    

    KT Wibro Infra Co., Ltd.

    		      391        5,025       —         5,025       —    

    KT-CKP New Media Investment Fund

    		      1,684        1,195       —         1,195       —    

     

    (In millions of Korean won)    2017  
         Current
    assets    		     

    Non-current

    assets

    		      Current
    liabilities    		     

    Non-current

    liabilities

    		  

    Korea Information & Technology Fund

    		    ￦ 144,874      ￦ 273,727      ￦ —        ￦ —    

    KT-SB Venture Investment

    		      120        5,770        6        —    

    KT-IBKC Future Investment Fund 1

    		      5,499        16,302        152        —    

    KT-CKP New Media Investment Fund

    		      287        4,333        —          —    

    K Bank Inc.

    		      1,258,969        92,137        1,116,154        1,177  

     

    (In millions of Korean won)   2017  
        Operating
    revenue    		     Profit (loss)
    for the year    		     Other
    comprehensive
    income    		     Total
    comprehensive
    income    		     Dividend
    received from
    associates    		  

    Korea Information & Technology Fund

    		   ￦ 36,462     ￦ 12,825     ￦ 1,868     ￦ 14,693     ￦ 739  

    KT-SB Venture Investment

    		     3       (1,449 )      —         (1,449 )      —    

    KT-IBKC Future Investment Fund 1

    		     15       (593 )      —         (593 )      —    

    KT-CKP New Media Investment Fund

    		     1,593       1,632       —         1,632       —    

    K Bank Inc.

    		     20,926       (83,787 )      (746 )      (84,533 )      —    

     

    Details of a reconciliation of the summarized financial information to the carrying amount of interests in the associates and joint ventures as of and for the years end December 31, 2016 and 2017, are as follows:

     

         2016  
    (In millions of Korean won)    Net assets      Percentage of
    ownership    		     Share in net
    assets    		      Intercompany
    transaction
    and others    		     Carrying
    amount    		  

    Korea Information & Technology Fund

    		    ￦ 404,908        33.3 %    ￦ 134,969      ￦ —       ￦ 134,969  

    KT-SB Venture Investment

    		      9,471        50.0 %      4,736        —         4,736  

    Mongolian Telecommunications

    		      15,610        40.0 %      6,244        —         6,244  

    KT Wibro Infra Co., Ltd.

    		      269,769        26.2 %      70,679        (18,479 )      52,200  

    KT-CKP New Media Investment Fund

    		      8,967        49.7 %      4,454        —         4,454  

     

         2017  
    (In millions of Korean won)    Net assets      Percentage of
    ownership    		     Share in net
    assets    		      Intercompany
    transaction
    and others    		      Carrying
    amount    		  

    Korea Information & Technology Fund

    		    ￦ 418,601        33.3 %    ￦ 139,534      ￦ —        ￦ 139,534  

    KT-SB Venture Investment

    		      5,884        50.0 %      2,942        —          2,942  

    KT-IBKC Future Investment Fund 1

    		      21,649        50.0 %      10,825        —          10,825  

    KT-CKP New Media Investment Fund

    		      4,620        49.7 %      2,294        —          2,294  

    K Bank Inc.1

    		      233,775        10.0 %      42,108        —          42,108  

     

    1 8% of non-voting convertible stock are excluded from percentage of ownership for K bank Inc

    Due to discontinuance of equity method of accounting, the Group has not recognized loss from associates and joint ventures of ￦4,391 million for the year (2015: ￦601 million, 2016: ￦1,354 million,). The accumulated comprehensive loss of associates and joint ventures as of December 31, 2017, which was not recognized by the Group is ￦17,045 million (2015: ￦51,597 million, 2016: ￦18,096 million).