SK TELECOM CO LTD (ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory)

30.

Finance Income and Costs

(1)	Details of finance income and costs for the years ended December 31, 2017, 2016 and 2015 are as follows:


(In millions of won)
	2017		2016		2015
Finance Income:
Interest income	￦	76,045		54,353		45,884
Gain on sale of accounts receivable — trade		18,548		18,638		—
Dividends		12,416		19,161		16,102
Gain on foreign currency transactions		13,676		14,186		18,923
Gain on foreign currency translations		7,110		5,085		5,090
Gain on disposal of long-term investment securities		4,890		459,349		10,786
Gain on valuation of derivatives		223,943		4,132		1,927
Reversal of impairment loss on available-for-sale financial assets		9,900		—		—
Gain relating to financial assets at fair value through profit or loss		33		25		—
Gain relating to financial liability at fair value through profit or loss		—		121		5,188

	￦	366,561		575,050		103,900

Finance Costs:
Interest expense	￦	299,100		290,454		297,662
Loss on sale of accounts receivable — trade		9,682		—		—
Loss on foreign currency transactions		19,263		16,765		17,931
Loss on foreign currency translations		8,419		3,991		4,750
Loss on disposal of long-term investment securities		36,024		2,919		2,599
Loss on settlement of derivatives		10,031		3,428		4,845
Loss relating to financial liability at fair value through profit or loss		678		4,018		526
Impairment loss on long-term investment securities(*)		14,519		5,255		21,787
Other finance costs		35,900		—		—

	￦	433,616		326,830		350,100

(*)	See Note 30-(5).

(2)	Details of interest income included in finance income for the years ended December 31, 2017, 2016 and 2015 are as follows:


(In millions of won)
	2017		2016		2015
Interest income on cash equivalents and short-term financial instruments	￦	28,130		20,203		20,009
Interest income on installment receivables and others		47,915		34,150		25,875

	￦	76,045		54,353		45,884

(3)	Details of interest expenses included in finance costs for the years ended December 31, 2017, 2016 and 2015 are as follows:


(In millions of won)
	2017		2016		2015
Interest expense on borrowings	￦	11,774		7,962		19,577
Interest expense on debentures		228,568		239,560		238,450
Interest on finance lease liabilities		—		—		58
Others		58,758		42,932		39,577

	￦	299,100		290,454		297,662

(4)	Finance income and costs by category of financial instruments for the years ended December 31, 2017, 2016 and 2015 are as follows. Bad debt expense (reversal of allowance for doubtful accounts) for accounts receivable — trade, loans and receivables are presented and explained separately in Note 7.

(i) Finance income


(In millions of won)
	2017		2016		2015
Financial Assets:
Financial assets at fair value through profit or loss	￦	223,976		4,157		1,927
Available-for-sale financial assets		30,598		484,300		31,220
Loans and receivables		111,677		86,256		64,749

Sub-total		366,251		574,713		97,896

Financial Liabilities:
Financial liabilities at fair value through profit or loss		—		121		5,188
Financial liabilities measured at amortized cost		310		216		816

Sub-total		310		337		6,004

	￦	366,561		575,050		103,900

(ii) Finance costs


(In millions of won)
	2017		2016		2015
Financial Assets:
Financial assets at fair value through profit or loss	￦	—		2,791		4,188
Available-for-sale financial assets		86,445		8,174		24,386
Loans and receivables		37,040		15,810		15,861
Derivatives designated as hedging instruments		—		637		657

Sub-total		123,485		27,412		45,092

Financial Liabilities:
Financial liabilities at fair value through profit or loss		678		4,018		526
Financial liabilities measured at amortized cost		299,422		295,400		304,482
Derivatives designated as hedging instruments		10,031		—		—

Sub-total		310,131		299,418		305,008

	￦	433,616		326,830		350,100

(iii) Other comprehensive income (loss)


(In millions of won)
	2017		2016			2015
Financial Assets:
Available-for-sale financial assets	￦	158,440		(223,981	)		(3,661	)
Derivatives designated as hedging instruments		1,554		(172	)		(3,248	)

Sub-total		159,994		(224,153	)		(6,909	)

Financial Liabilities:
Derivatives designated as hedging instruments		21,032		(13,046	)		1,977

Sub-total		21,032		(13,046	)		1,977

	￦	181,026		(237,199	)		(4,932	)

(5)	Details of impairment losses for financial assets for the years ended December 31, 2017, 2016 and 2015 are as follows:


(In millions of won)
	2017		2016		2015
Available-for-sale financial assets(*)	￦	14,519		5,255		21,787
Accounts receivable — trade		34,584		37,820		60,450
Other receivables		5,793		40,312		15,323

	￦	54,896		83,387		97,560

(*)	This is included in other finance costs (See Note 30-(1)).

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