Reconciliation between actual income tax expense and the amount computed by applying applicable tax rate to profit before tax for the years ended December 31, 2017 and 2016 are as follows
|
|
|
2017 |
|
|
2016 |
|
||||
|
|
|
|
(In millions of Korean won) |
|
||||||
|
Profit before income tax |
|
|
|
14,458 |
|
|
|
|
3,827 |
|
|
Income tax using the statutory tax rate of each country |
|
|
|
3,232 |
|
|
|
|
700 |
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Non-deductible expenses |
|
|
|
136 |
|
|
|
|
37 |
|
|
Foreign taxes paid but not utilized as tax credit or recognized as deferred tax asset |
|
|
|
3,963 |
|
|
|
|
2,819 |
|
|
Utilization of previously unrecognized deferred tax asset |
|
|
|
(3,307 |
) |
|
|
|
— |
|
|
Recognition of previously unrecognized deferred tax assets |
|
|
|
(3,036 |
) |
|
|
|
— |
|
|
Effect of change foreign currency exchange rate |
|
|
|
495 |
|
|
|
|
(114 |
) |
|
Others |
|
|
|
(339 |
) |
|
|
|
(202 |
) |
|
Total adjustments |
|
|
|
(2,088 |
) |
|
|
|
2,540 |
|
|
Income tax expense |
|
|
|
1,144 |
|
|
|
|
3,240 |
|
|
Effective tax rate |
|
|
|
8 |
% |
|
|
|
85 |
% |