| There have been no transfers from Level 2 to Level 1 in 2017 and changes of financial assets classified as Level 3 for the year ended December 31, 2017 are as follows: |
| (In millions of won) | ||||||||||||||||||||||||
| Balance at beginning |
Valuation | Transfer | Other compre- hensive loss |
Disposal | Balance at ending |
|||||||||||||||||||
|
Financial assets at fair value through profit or loss(*) |
￦ | — | 222,257 | — | — | — | 222,257 | |||||||||||||||||
|
Available-for-sale financial assets |
107,558 | — | 3,938 | (8,942 | ) | (4,652 | ) | 97,902 | ||||||||||||||||
| (*) | The Group holds redeemable convertible preferred shares issued by Bluehole INC. The conversion rights attached to the investments are bifurcated from the host contract as embedded derivatives and the Group recognized ￦222,257 million as financial assets at FVTPL and gain on valuation of derivatives, respectively, as of and during the year ended December 31, 2017. The host contract was recognized as available-for-sale financial assets of ￦15,342 million measured by discounting the amount of collection at maturity including the principal, guaranteed interests, and dividend. The fair value of the conversion rights were measured using the binomial option pricing model by considering inputs such as expected volatility, exercise price, and common share price. |