|
|
|
|
|
|
|
42. INCOME TAX EXPENSE
| (1) | Income tax expenses are as follows (Unit: Korean Won in millions): |
| For the years ended December 31 | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
Current tax expense |
||||||||||||
|
Current tax expense in respect of the current year |
362,552 | 332,996 | 471,669 | |||||||||
|
Adjustments recognized in the current period in relation to the current tax of prior periods |
(27,038 | ) | (22,138 | ) | (5,209 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
Sub-total |
335,514 | 310,858 | 466,460 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Deferred tax expense |
||||||||||||
|
Deferred tax expense (benefit) relating to the origination and reversal of temporary differences |
44,884 | (18,766 | ) | (47,464 | ) | |||||||
|
Less: Deferred tax charged directly to other comprehensive income |
(3,844 | ) | (16,236 | ) | 422 | |||||||
|
|
|
|
|
|
|
|||||||
|
Sub-total |
41,040 | (35,002 | ) | (47,042 | ) | |||||||
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
376,554 | 275,856 | 419,418 | |||||||||
| (2) | Income tax expense (benefit) can be reconciled to net income (loss) before income tax expense as follows (Unit: Korean Won in millions): |
| For the years ended December 31 | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
Net income before income tax expense |
1,451,946 | 1,553,389 | 1,949,506 | |||||||||
|
Income from continuing operations before income tax |
1,451,946 | 1,553,389 | 1,949,506 | |||||||||
|
Tax calculated at statutory tax rate(*) |
350,909 | 375,458 | 471,318 | |||||||||
|
Adjustments |
||||||||||||
|
Effect of income that is exempt from taxation |
(56,247 | ) | (75,166 | ) | (55,983 | ) | ||||||
|
Effect of expense that is not deductible in determining taxable profit |
50,152 | 13,664 | 22,254 | |||||||||
|
Adjustments recognized in the current period in relation to the current tax of prior periods |
(27,038 | ) | (22,138 | ) | (5,209 | ) | ||||||
|
Effect on deferred tax balances due to the change in income tax rate from 24.2% to 27.5% (effective January 1, 2018) |
— | — | (35,987 | ) | ||||||||
|
Others |
58,778 | (15,962 | ) | 23,025 | ||||||||
|
|
|
|
|
|
|
|||||||
|
Sub-total |
25,645 | (99,602 | ) | (51,900 | ) | |||||||
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
376,554 | 275,856 | 419,418 | |||||||||
|
Effective tax rate |
||||||||||||
| 25.93 | % | 17.76 | % | 21.51 | % | |||||||
| (*) | Applicable income tax rate; 1) 11% for below 200 million Won, 2) 22% for from 200 million Won to 20 billion Won, 3) 24.2% for above 20 billion Won. |
| (3) | Deferred tax assets and liabilities are as follows (Unit: Korean Won in millions): |
| For the year ended December 31, 2015 | ||||||||||||||||
| Beginning balance (*1) |
Recognized as income (loss) |
Recognized as other comprehensive income (loss) |
Ending balance |
|||||||||||||
|
Gain (loss) on financial assets at FVTPL |
422,910 | 22,819 | — | 445,729 | ||||||||||||
|
Gain (loss) on available-for-sale financial assets |
(105,556 | ) | 94 | (16,074 | ) | (121,536 | ) | |||||||||
|
Gain (loss) on valuation using the equity method of accounting |
21,156 | (14,936 | ) | (1,114 | ) | 5,106 | ||||||||||
|
Gain (loss) on valuation of derivatives |
(48,438 | ) | 8,664 | — | (39,774 | ) | ||||||||||
|
Accrued income |
(75,094 | ) | (7,054 | ) | — | (82,148 | ) | |||||||||
|
Allowance for loan loss |
(59,428 | ) | 8,924 | — | (50,504 | ) | ||||||||||
|
Loan and receivables written off |
6,921 | 47,304 | — | 54,225 | ||||||||||||
|
Loan origination costs and fees |
(88,476 | ) | (15,436 | ) | — | (103,912 | ) | |||||||||
|
Defined benefit liability |
151,666 | 26,912 | 24,845 | 203,423 | ||||||||||||
|
Deposits with employee retirement insurance trust |
(135,474 | ) | (51,570 | ) | — | (187,044 | ) | |||||||||
|
Provision for guarantee |
84,530 | (15,305 | ) | — | 69,225 | |||||||||||
|
Other provision |
37,029 | (9,131 | ) | — | 27,898 | |||||||||||
|
Others |
24,355 | (42,324 | ) | (11,501 | ) | (29,470 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net deferred tax assets |
236,101 | (41,039 | ) | (3,844 | ) | 191,218 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| For the year ended December 31, 2016 | ||||||||||||||||
| Beginning balance |
Recognized as income (loss) |
Recognized as other comprehensive income (loss) |
Ending balance |
|||||||||||||
|
Gain on financial assets at FVTPL |
445,729 | (18,524 | ) | — | 427,205 | |||||||||||
|
Gain (loss) on AFS financial assets |
(121,536 | ) | 57 | (666 | ) | (122,145 | ) | |||||||||
|
Gain (loss) on valuation using the equity method of accounting |
5,106 | 26,500 | 1,337 | 32,943 | ||||||||||||
|
Gain (loss) on valuation of derivatives |
(39,774 | ) | (4,079 | ) | — | (43,853 | ) | |||||||||
|
Accrued income |
(82,148 | ) | 12,188 | — | (69,960 | ) | ||||||||||
|
Provision for loan losses |
(50,504 | ) | 3,693 | — | (46,811 | ) | ||||||||||
|
Loan and receivables written off |
54,225 | (310 | ) | — | 53,915 | |||||||||||
|
Loan origination costs and fees |
(103,912 | ) | (4,190 | ) | — | (108,102 | ) | |||||||||
|
Defined benefit liability |
203,423 | 32,536 | (10,914 | ) | 225,045 | |||||||||||
|
Deposits with employee retirement insurance trust |
(187,044 | ) | (39,277 | ) | — | (226,321 | ) | |||||||||
|
Provision for guarantee |
69,225 | (28,087 | ) | — | 41,138 | |||||||||||
|
Other provision |
27,898 | 4,494 | — | 32,392 | ||||||||||||
|
Others |
(29,470 | ) | 50,001 | (5,993 | ) | 14,538 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net deferred tax assets |
191,218 | 35,002 | (16,236 | ) | 209,984 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*1) | The beginning balance incorporates the deferred tax assets (liabilities) from subsidiaries that were reclassified into disposal group held for sale and disposal groups held for distribution to owners. |
| For the year ended December 31, 2017 | ||||||||||||||||
| Beginning balance |
Recognized as income (expense) |
Recognized as other comprehensive income (expense) |
Ending balance |
|||||||||||||
|
Gain on financial assets at FVTPL |
427,205 | 70,996 | — | 498,201 | ||||||||||||
|
Gain (loss) on AFS financial assets |
(122,145 | ) | 1,011 | (1,008 | ) | (122,142 | ) | |||||||||
|
Gain (loss) on valuation using the equity method of accounting |
32,943 | (6,473 | ) | (1,904 | ) | 24,566 | ||||||||||
|
Gain (loss) on valuation of derivatives |
(43,853 | ) | 33,806 | (248 | ) | (10,295 | ) | |||||||||
|
Accrued income |
(69,960 | ) | 8,972 | — | (60,988 | ) | ||||||||||
|
Provision for loan losses |
(46,811 | ) | (886 | ) | — | (47,697 | ) | |||||||||
|
Loan and receivables written off |
53,915 | (44,138 | ) | — | 9,777 | |||||||||||
|
Loan origination costs and fees |
(108,102 | ) | (29,218 | ) | — | (137,320 | ) | |||||||||
|
Defined benefit liability |
225,045 | 54,533 | 4,656 | 284,234 | ||||||||||||
|
Deposits with employee retirement insurance trust |
(226,321 | ) | (61,012 | ) | — | (287,333 | ) | |||||||||
|
Provision for guarantee |
41,138 | (10,536 | ) | — | 30,602 | |||||||||||
|
Other provision |
32,392 | 12,761 | — | 45,153 | ||||||||||||
|
Others(*2) |
14,538 | 17,227 | (1,074 | ) | 30,691 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net deferred tax assets |
209,984 | 47,043 | 422 | 257,449 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (*2) | Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from accumulated deficit amounts to 15,652 million Won. |
| (4) | Unrecognised temporary differences are as follows (Unit: Korean Won in millions): |
| December 31, 2016 | December 31, 2017 | |||||||
|
Deductible temporary differences(*) |
59,803 | 126,818 | ||||||
|
Unused tax losses |
192,138 | 96,135 | ||||||
|
Taxable temporary differences(*) |
(1,263,200 | ) | (1,298,586 | ) | ||||
|
|
|
|
|
|||||
|
Total |
(1,011,259 | ) | (1,075,633 | ) | ||||
|
|
|
|
|
|||||
| (*) | The amounts in the tabular disclosure at 31 December 2016 have been restated by (164,649) million Won relating to Deductible temporary differences and (394,659) million Won relating to Taxable temporary differences, respectively, due to an error in the previous year’s disclosure. |
| (5) | Deferred tax charged directly to other comprehensive income is as follows (Unit: Korean Won in millions): |
| December 31, 2016 | December 31, 2017 | |||||||
|
Loss on available-for-sale financial assets |
(113,161 | ) | (114,169 | ) | ||||
|
Share of other comprehensive gain (loss) of jointly controlled entities and associates |
950 | (954 | ) | |||||
|
Gain on foreign currency translation of foreign operations |
16,930 | 15,855 | ||||||
|
Remeasurements |
51,661 | 56,317 | ||||||
|
Loss on valuation of cash flow hedges |
— | (248 | ) | |||||
|
|
|
|
|
|||||
|
Total |
(43,620 | ) | (43,199 | ) | ||||
|
|
|
|
|
|||||
| (6) | Current tax assets and liabilities are as follows (Unit: Korean Won in millions): |
| December 31, 2016 | December 31, 2017 | |||||||
|
Current tax assets |
6,229 | 4,722 | ||||||
|
Current tax liabilities |
171,192 | 232,600 | ||||||
| (7) | Deferred tax assets and liabilities are as follows (Unit: Korean Won in millions): |
| December 31, 2016 | December 31, 2017 | |||||||
|
Deferred tax assets |
232,007 | 280,130 | ||||||
|
Deferred tax liabilities |
22,023 | 22,681 | ||||||
|
|
|
|
|
|||||
|
Net deferred tax assets |
209,984 | 257,449 | ||||||
|
|
|
|
|
|||||