| 34. | Related Party Transactions |
The list of related party of the Group as of December 31, 2017, is as follows:
| Relationship | Name of Entry | |
|
Associates and joint ventures |
Korea Information & Technology Investment Fund, K- Realty CR-REITs No.1, KT-SB Venture Investment Fund, Boston Global Film & Contents Fund L.P., QTT Global (Group) Company Limited, CU Industrial Development Co., Ltd., PHI Healthcare., KD Living, Inc., MOS GS Co., Ltd., MOS Daegu Co., Ltd., MOS Chungcheong Co., Ltd., MOS Gangnam Co., Ltd., MOS GB Co., Ltd., MOS BS Co., Ltd., MOS Honam Co., Ltd., Oscar Ent. Co., Ltd., KT-CKP New Media Investment Fund, LoginD Co., Ltd., K-REALTY CR-REIT 6, K Bank, Inc., NgeneBio, ISU-kth Contents Investment Fund, Daiwon Broadcasting Co., Ltd., KT-DSC creative economy youth start-up investment fund, Gyeonggi-KT Green Growth Fund, Korea electronic Vehicle charging service, PT. Mitra Transaksi Indonesia, K-REALTY RENTAL HOUSING REIT 2, KT-IBKC future investment fund 1, AI RESEARCH INSTITUTE, Gyeonggi-KT Yoojin Superman Fund, FUNDA Co., Ltd., FUNDA Co., Ltd., CHAMP IT Co.,Ltd., GE Premier 1st Corporate Restructuring Real Estate Investment Trust Company, Alliance Internet Corp. |
Outstanding balances of receivables and payables in relations to transactions with related parties as of December 31, 2016 and 2017, are as follows:
| 2016 | ||||||||||||||||||||||
| Receivables | Payables | |||||||||||||||||||||
| (In millions of Korean won) | Trade receivables |
Loans | Other receivables |
Trade payables |
Other payables |
|||||||||||||||||
|
Associates and joint ventures |
KT Wibro Infra Co., Ltd. | ￦ | — | ￦ | — | ￦ | — | ￦ | — | ￦ | 43,394 | |||||||||||
| K-Realty CR-REITs No.1 | 882 | — | 33,110 | — | — | |||||||||||||||||
| MOS GS Co., Ltd. | 9 | — | 1 | — | 1,494 | |||||||||||||||||
| MOS Daegu Co., Ltd. | 1 | — | — | — | 1,082 | |||||||||||||||||
| MOS Chungcheong Co., Ltd. | 6 | — | 1 | — | 2,065 | |||||||||||||||||
| MOS Gangnam Co., Ltd. | 6 | — | 1 | — | 1,129 | |||||||||||||||||
| MOS GB Co., Ltd. | 19 | — | 5 | — | 2,167 | |||||||||||||||||
| MOS BS Co., Ltd. | 34 | — | 1 | — | 1,114 | |||||||||||||||||
| MOS Honam Co., Ltd. | 2 | — | — | — | 1,289 | |||||||||||||||||
| Others | 481 | — | 179 | 3 | 1,266 | |||||||||||||||||
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Total |
￦ | 1,440 | ￦ | — | ￦ | 33,298 | ￦ | 3 | ￦ | 55,000 | ||||||||||||
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| 2017 | ||||||||||||||||||||||
| Receivables | Payables | |||||||||||||||||||||
| (In millions of Korean won) | Trade receivables |
Loans | Other receivables |
Trade payables |
Other payables |
|||||||||||||||||
|
Associates and joint ventures |
K-Realty CR-REITs No.1 | ￦ | 778 | ￦ | — | ￦ | 33,800 | ￦ | — | ￦ | — | |||||||||||
| MOS GS Co., Ltd. | 17 | — | — | — | 392 | |||||||||||||||||
| MOS Daegu Co., Ltd. | 1 | — | — | — | 1,388 | |||||||||||||||||
| MOS Chungcheong Co., Ltd. | 1 | — | 290 | — | 1,827 | |||||||||||||||||
| MOS Gangnam Co., Ltd. | 6 | — | 1 | — | 287 | |||||||||||||||||
| MOS GB Co., Ltd. | 17 | — | 1 | — | 778 | |||||||||||||||||
| MOS BS Co., Ltd. | 34 | — | 1 | — | 46 | |||||||||||||||||
| MOS Honam Co., Ltd. | 2 | — | 1 | — | 384 | |||||||||||||||||
| K Bank, Inc. | 1,338 | — | 7,994 | — | 296 | |||||||||||||||||
| NgeneBio | 1 | 2,510 | — | — | 3 | |||||||||||||||||
| Others | 54 | — | 1,281 | — | 2,135 | |||||||||||||||||
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Total |
￦ | 2,249 | ￦ | 2,510 | ￦ | 43,369 | ￦ | — | ￦ | 7,536 | ||||||||||||
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Significant transactions with related parties for the years ended December 31, 2015, 2016 and 2017, are as follows:
| 2015 | ||||||||||
| (In millions of Korean won) | Sales | Purchases2 | ||||||||
|
Associates and joint ventures |
KT Service Bukbu1 | ￦ | 2,143 | ￦ | 28,550 | |||||
| Information Technology Solution Nambu Corporation1 | 2,707 | 24,025 | ||||||||
| Information Technology Solution Seobu Corporation1 | 2,324 | 20,031 | ||||||||
| Information Technology Solution Busan Corporation1 | 1,496 | 14,049 | ||||||||
| KT Service Nambu1 | 1,972 | 21,133 | ||||||||
| Information Technology Solution Honam Corporation1 | 2,050 | 29,538 | ||||||||
| Information Technology Solution Daegu Corporation1 | 1,256 | 18,272 | ||||||||
| KT Wibro Infra Co., Ltd. | 11 | 814 | ||||||||
| Smart Channel Co., Ltd. | 6,545 | 4,722 | ||||||||
| K- Realty CR-REITs No.1 | 2,133 | 38,167 | ||||||||
| MOS GS Co., Ltd. | 752 | 17,474 | ||||||||
| MOS Daegu Co., Ltd. | 357 | 12,227 | ||||||||
| MOS Chungcheong Co., Ltd. | 310 | 12,735 | ||||||||
| MOS Gangnam Co., Ltd. | 454 | 15,829 | ||||||||
| MOS GB Co., Ltd. | 964 | 21,582 | ||||||||
| MOS BS Co., Ltd. | 453 | 15,482 | ||||||||
| MOS Honam Co., Ltd. | 470 | 17,004 | ||||||||
| Others | 4,394 | 13,510 | ||||||||
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Total3 |
￦ | 30,791 | ￦ | 325,144 | ||||||
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| 1 | The transactions for the year ended December 31, 2015, after KT Service Bukbu Co., Ltd. and KT Service Nambu Co., Ltd. were merged and included in the consolidation scope. |
| 2 | The amount includes acquisition of property, plant and equipment, and others. |
| 3 | Operating income amounting to ￦6,634 million of KT Capital Co., Ltd. and KT Rental that were classified as discontinued operations during the year ended December 31, 2015, is included. |
| 2016 | ||||||||||
| (In millions of Korean won) | Sales | Purchases2 | ||||||||
|
Associates and joint ventures |
KT Wibro Infra Co., Ltd. | ￦ | 11 | ￦ | 391 | |||||
| Smart Channel Co., Ltd. 1 | 766 | — | ||||||||
| K- Realty CR-REITs No.1 | 1,989 | 37,469 | ||||||||
| MOS GS Co., Ltd. | 663 | 17,361 | ||||||||
| MOS Daegu Co., Ltd. | 291 | 12,220 | ||||||||
| MOS Chungcheong Co., Ltd. | 408 | 13,469 | ||||||||
| MOS Gangnam Co., Ltd. | 412 | 15,797 | ||||||||
| MOS GB Co., Ltd. | 891 | 21,802 | ||||||||
| MOS BS Co., Ltd. | 441 | 15,346 | ||||||||
| MOS Honam Co., Ltd. | 418 | 14,389 | ||||||||
| Others | 1,719 | 29,422 | ||||||||
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Total |
￦ | 8,009 | ￦ | 177,666 | ||||||
|
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| 1 | The transactions for the year ended December 31, 2016, before Smart Channel Co., Ltd. was included in the consolidation scope. |
| 2 | The amount includes acquisition of property, plant and equipment, and others. |
| 2017 | ||||||||||
| (In millions of Korean won) | Sales | Purchases1 | ||||||||
|
Associates and joint ventures |
K- Realty CR-REITs No.1 | ￦ | 2,233 | ￦ | 35,532 | |||||
| MOS GS Co., Ltd. | 704 | 16,946 | ||||||||
| MOS Daegu Co., Ltd. | 335 | 8,514 | ||||||||
| MOS Chungcheong Co., Ltd. | 455 | 15,542 | ||||||||
| MOS Gangnam Co., Ltd. | 484 | 16,380 | ||||||||
| MOS GB Co., Ltd. | 987 | 21,651 | ||||||||
| MOS BS Co., Ltd. | 460 | 15,957 | ||||||||
| MOS Honam Co., Ltd. | 493 | 14,294 | ||||||||
| K Bank, Inc.3 | 29,939 | 59 | ||||||||
| NgeneBio2 | 43 | — | ||||||||
| Others | 1,149 | 11,384 | ||||||||
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Total |
￦ | 37,282 | ￦ | 156,259 | ||||||
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| 1 | The amount includes acquisition of property, plant and equipment and others. |
| 2 | It is the amount after excluded from consolidation during the year. |
| 3 | The sales amount consists of providing services of IT system construction to K Bank, Inc. |
Key management compensation for the years ended December 31, 2015, 2016 and 2017, consists of:
| (In millions of Korean won) | 2015 | 2016 | 2017 | |||||||||
|
Salaries and other short-term benefits |
￦ | 2,455 | ￦ | 2,629 | ￦ | 2,879 | ||||||
|
Post-employment benefits |
413 | 381 | 311 | |||||||||
|
Stock-based compensation |
997 | 1,237 | 1,331 | |||||||||
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Total |
￦ | 3,865 | ￦ | 4,247 | ￦ | 4,521 | ||||||
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Fund transactions with related parties for the years ended December 31, 2016 and 2017, are as follows:
| (In millions of Korean won) | 2016 | |||||||
| Equity contributions in cash |
Dividend income |
|||||||
|
Associates and joint ventures |
||||||||
|
KT-DSC creative economy youth start-up investment fund |
￦ | 6,000 | ￦ | — | ||||
|
PT. Mitra Transaksi Indonesia |
16,626 | — | ||||||
|
K-REALTY RENTAL HOUSING REIT 2 |
5,500 | — | ||||||
|
AI RESEARCH INSTITUTE |
3,000 | — | ||||||
|
KT-IBKC future investment fund 1 |
3,750 | — | ||||||
|
Gyeonggi-KT Yoojin Superman Fund |
1,000 | — | ||||||
|
FUNDA Co., Ltd. |
2,799 | — | ||||||
|
K-Realty CR-REITs No.1 |
— | 4,186 | ||||||
|
Korea Information & Technology Investment Fund |
— | 3,201 | ||||||
|
Daiwon Broadcasting Co., Ltd. |
— | 85 | ||||||
|
Others |
— | 82 | ||||||
|
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|
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|
Total |
￦ | 38,675 | ￦ | 7,554 | ||||
|
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|
|||||
| (In millions of Korean won) | 2017 | |||||||
| Equity contributions in cash |
Dividend income |
|||||||
|
Associates and joint ventures |
||||||||
|
PT. Mitra Transaksi Indonesia |
￦ | 5,194 | ￦ | — | ||||
|
KT-IBKC future investment fund 1 |
7,500 | — | ||||||
|
CHAMP IT Co.,Ltd. |
750 | — | ||||||
|
Korea Electronic Vehicle Charging Service |
864 | — | ||||||
|
Gyeonggi-KT Yoojin Superman Fund |
1,000 | — | ||||||
|
K-REALTY CR REIT 1 |
— | 5,392 | ||||||
|
K Bank, Inc. |
26,543 | — | ||||||
|
Korea Information & Technology Investment Fund |
— | 739 | ||||||
|
MOS GS Co., Ltd. |
— | 12 | ||||||
|
MOS Daegu Co., Ltd. |
— | 12 | ||||||
|
MOS Chungcheong Co., Ltd. |
— | 12 | ||||||
|
MOS Gangnam Co., Ltd. |
— | 10 | ||||||
|
MOS GB Co., Ltd. |
— | 15 | ||||||
|
MOS BS Co., Ltd. |
— | 10 | ||||||
|
MOS Honam Co., Ltd. |
— | 10 | ||||||
|
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Total |
￦ | 41,851 | ￦ | 6,212 | ||||
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