| 11. | Investment Properties |
Changes in investment properties for the years ended December 31, 2016 and 2017, are as follows:
| (In millions of Korean won) | 2016 | |||||||||||||||
| Land | Buildings | Construction-in- progress |
Total | |||||||||||||
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Acquisition cost |
￦ | 340,790 | ￦ | 1,011,236 | ￦ | 74,208 | ￦ | 1,426,234 | ||||||||
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Less: Accumulated depreciation |
— | (324,164 | ) | — | (324,164 | ) | ||||||||||
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Beginning |
340,790 | 687,072 | 74,208 | 1,102,070 | ||||||||||||
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Acquisition |
51 | 417 | 160,138 | 160,606 | ||||||||||||
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Disposal/Abandonment |
(5,837 | ) | (1,802 | ) | — | (7,639 | ) | |||||||||
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Depreciation |
— | (43,575 | ) | — | (43,575 | ) | ||||||||||
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Transfer |
(32,254 | ) | 124,417 | (155,581 | ) | (63,418 | ) | |||||||||
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Ending |
￦ | 302,750 | ￦ | 766,529 | ￦ | 78,765 | ￦ | 1,148,044 | ||||||||
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Acquisition cost |
￦ | 302,750 | ￦ | 1,119,885 | ￦ | 78,765 | ￦ | 1,501,400 | ||||||||
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Less: Accumulated depreciation |
— | ￦ | (353,356 | ) | — | ￦ | (353,356 | ) | ||||||||
| (In millions of Korean won) | 2017 | |||||||||||||||
| Land | Buildings |
Construction-in- progress |
Total | |||||||||||||
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Acquisition cost |
￦ | 302,750 | ￦ | 1,119,885 | ￦ | 78,765 | ￦ | 1,501,400 | ||||||||
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Less: Accumulated depreciation |
— | (353,356 | ) | — | (353,356 | ) | ||||||||||
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Beginning |
302,750 | 766,529 | 78,765 | 1,148,044 | ||||||||||||
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Acquisition |
— | 775 | 48,075 | 48,850 | ||||||||||||
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Disposal/Abandonment |
(3,493 | ) | (6,434 | ) | — | (9,927 | ) | |||||||||
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Depreciation |
— | (47,295 | ) | — | (47,295 | ) | ||||||||||
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Transfer from(to) property, plant and equipment |
64,449 | (1,793 | ) | (1,184 | ) | 61,472 | ||||||||||
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Transfer and others |
(6,916 | ) | 80,986 | (85,683 | ) | (11,613 | ) | |||||||||
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Ending |
￦ | 356,790 | ￦ | 792,768 | ￦ | 39,973 | ￦ | 1,189,531 | ||||||||
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Acquisition cost |
￦ | 358,358 | ￦ | 1,191,687 | ￦ | 39,973 | ￦ | 1,590,018 | ||||||||
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Less: Accumulated depreciation (include. Accumulated impairment) |
(1,568 | ) | (398,919 | ) | — | (400,487 | ) | |||||||||
The fair value of investment properties is ￦1,755,600 million as of December 31, 2017 (2016: ￦1,962,779 million). The fair value of investment properties is estimated based on the expected cash flow.
Rental income from investment properties is ￦205,993 million in 2017 (2016: ￦184,670 million) and direct operating expenses (including repairs and maintenance) arising from investment properties that generated rental income during the period are recognized as operating expenses.
Details of investment properties provided as collateral as of December 31, 2016 and 2017, are as follows:
| (In millions of Korean won) | 2016 | |||||||||||||
| Carrying amount |
Secured amount |
Related account |
Related amount |
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Buildings |
￦ | 711,989 | ￦ | 98,543 | Deposits | ￦ | 84,334 | |||||||
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Land and Buildings |
￦ | 8,035 | ￦ | 7,891 | Borrowings | ￦ | 5,260 | |||||||
| (In millions of Korean won) | 2017 | |||||||||||||
| Carrying amount |
Secured amount |
Related account |
Related amount |
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Buildings |
￦ | 772,708 | ￦ | 104,861 | Deposits | ￦ | 90,150 | |||||||
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Land and Buildings |
￦ | 7,897 | ￦ | 7,905 | Borrowings | ￦ | 5,270 | |||||||