22. Transactions with related parties
(1) List of related party of the Company as of December 31, 2017 and 2016, is as follows:
The related parties of the Company are entities and individuals capable of exercising control or significant influence over the Company. Related parties include GungHo Online Entertainment, Inc.(the largest shareholder of Gravity through its 59.31% common shares) and its subsidiaries, members of board of directors, and executives with strategic responsibilities and their immediate families.
(2) Major balances of receivables from and payables to related parties
Details of receivables from and payables to related parties as of December 31, 2017, 2016 and January 1, 2016 are as follows:
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December 31, 2017 |
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December 31, 2016 |
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January 1, 2016 |
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(In millions of Korean won) |
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Related parties classification |
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Entity |
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Receivable |
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Payables |
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Receivable |
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Payables |
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Receivable |
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Payables |
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Parent company |
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Gung-Ho Online Entertainment, Inc. (*1) |
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|
775 |
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|
|
|
3 |
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|
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1,116 |
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3,025 |
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1,261 |
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4,702 |
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Other related company |
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ACQUIRE Corp (*2) |
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|
|
— |
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|
|
|
— |
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|
|
|
— |
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|
|
|
— |
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|
|
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— |
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|
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10 |
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Total |
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|
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775 |
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|
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|
3 |
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|
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1,116 |
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3,025 |
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|
|
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1,261 |
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4,712 |
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(*1) |
In February 2016, the license and distribution agreement for Ragnarok Online II with GungHo Online Entertainment Inc. was terminated and as part of the termination, $5 million in initial payments received from GungHo Online Entertainment Inc., which were recorded as long-term deferred revenue as of December 31, 2015, was refunded in four equal payments by the end of the December 2017. |
(*2) ACQUIRE Corp. is a subsidiary of GungHo Online Entertainment, Inc.
(3) Transactions such as sales and purchases
The details of sales and purchases with related parties for the years ended December 31, 2017 and 2016 are as follows
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2017 |
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2016 |
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Related parties classification |
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Entity |
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Sales |
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Purchase |
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Sales |
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Purchase |
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|
Parent company |
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Gung-Ho Online Entertainment, Inc. |
|
|
|
10,529 |
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|
|
|
36 |
|
|
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|
10,667 |
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|
|
|
36 |
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Other related company |
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ACQUIRE Corp |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
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|
|
|
3 |
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Total |
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10,529 |
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|
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|
36 |
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|
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10,667 |
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39 |
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(4) Fund transactions with related parties
No fund transactions were made with related parties for the years ended December 31, 2017 and 2016.
(5) Compensation for key management personnel
The compensation for the key management personnel (registered directors), for the years ended December 31, 2017 and 2016 are as follows.
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2017 |
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2016 |
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(In millions of Korean won) |
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Salary |
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629 |
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|
428 |
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