| 26. | Share option |
| (1) | At the shareholders’ meeting held on March 24, 2017, the Parent Company established a share option program that entitles key management personnel the option to purchase common shares of the Parent Company. The terms and conditions related to the grants of the share options under the share option program are as follows: |
| Series | ||||||
| 1-1 | 1-2 | 1-3 | ||||
|
Grant date |
March 24, 2017 | |||||
|
Types of shares to be issued |
66,504 of registered common shares | |||||
|
Grant method |
Reissue of treasury shares | |||||
|
Number of shares (in shares) |
22,168 | 22,168 | 22,168 | |||
|
Exercise price (in won) |
246,750 | 266,490 | 287,810 | |||
|
Exercise period |
Mar. 25, 2019 ~ Mar. 24, 2022 |
Mar. 25, 2020 ~ Mar. 24, 2023 |
Mar. 25, 2021 ~ Mar. 24, 2024 |
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|
Vesting conditions |
2 years’ service from the grant date |
3 years’ service from the grant date |
4 years’ service from the grant date |
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| (2) | Share compensation expense recognized during the year ended December 31, 2017 and the remaining share compensation expense to be recognized in subsequent periods are as follows: |
| (In millions of won) | Share compensation expense |
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|
During the year ended December 31, 2017 |
￦ | 414 | ||
|
In subsequent periods |
977 | |||
|
|
|
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| ￦ | 1,391 | |||
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|
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| (3) | The Group used binomial option pricing model in the measurement of the fair value of the share options at grant date and the inputs used in the model are as follows: |
| 1-1 | 1-2 | 1-3 | ||||||||||
|
Risk-free interest rate |
1.86 | % | 1.95 | % | 2.07 | % | ||||||
|
Estimated option’s life |
5 years | 6 years | 7 years | |||||||||
|
Share price (Closing price on the preceding day in won) |
262,500 | 262,500 | 262,500 | |||||||||
|
Expected volatility |
13.38 | % | 13.38 | % | 13.38 | % | ||||||
|
Expected dividends |
3.80 | % | 3.80 | % | 3.80 | % | ||||||
|
Exercise price (in won) |
246,750 | 266,490 | 287,810 | |||||||||
|
Per share fair value of the option (in won) |
27,015 | 20,240 | 15,480 | |||||||||