SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE
13a-16
OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2017
LG Display
Co., Ltd.
(Translation of Registrant’s name into English)
LG Twin Towers, 128
Yeoui-daero,
Yeongdeungpo-gu,
Seoul
07336, Republic of Korea
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F
or Form
40-F.
Form
20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is submitting the Form
6-K
in paper as permitted by
Regulation
S-T
Rule 101(b)(1): ☐
Note: Regulation
S-T
Rule 101(b)(1) only permits the submission in paper of a Form
6-K
if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form
6-K
in paper as permitted by
Regulation
S-T
Rule 101(b)(7): ☐
Note: Regulation
S-T
Rule 101(b)(7) only permits the submission in paper of a Form
6-K
if submission to furnish a report or other document that the registration foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the
registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already
been the subject of a Form
6-K
submission or other Commission filing on EDGAR.
Indicate by check
mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of
1934.
Yes ☐ No ☒
QUARTERLY REPORT
(From January 1, 2017 to September 30, 2017)
THIS IS A TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION.
IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED AND CERTAIN NUMBERS WERE ROUNDED FOR THE CONVENIENCE OF
READERS. REFERENCES TO “Q1”, “Q2”, “Q3” AND “Q4” OF A FISCAL YEAR ARE REFERENCES TO THE
THREE-MONTH
PERIODS ENDED MARCH 31, JUNE 30, SEPTEMBER 30 AND DECEMBER 31,
RESPECTIVELY, OF SUCH FISCAL YEAR. REFERENCES TO “Q1~Q3” OF A FISCAL YEAR ARE REFERENCES TO THE NINE-MONTH PERIOD ENDED SEPTEMBER 30 OF SUCH FISCAL YEAR.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH KOREAN INTERNATIONAL FINANCIAL
REPORTING STANDARDS, OR
K-IFRS,
WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES.
K-IFRS
ALSO DIFFERS IN CERTAIN RESPECTS FROM THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE
IMPACT OF THESE DIFFERENCES IN THIS DOCUMENT.
Contents
2
Attachment: 1. Financial Statements in accordance with
K-IFRS
3
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A.
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Name and contact information
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The name of our company is
“EL-GI
DISPLAY CHUSIK HOESA,” which shall be “LG Display Co., Ltd.” in English.
Our principal executive office is located at LG Twin Towers, 128
Yeoui-daero,
Yeongdeungpo-gu,
Seoul 07336, Republic of Korea, and our telephone number is
+82-2-3777-1010.
Our website address is
http://www.lgdisplay.com
.
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B.
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Domestic credit rating
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Subject instrument
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Month of rating
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Credit rating
(1)
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Rating agency (Rating range)
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Corporate bonds
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April 2015
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AA
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NICE Information Service Co., Ltd. (AAA ~ D)
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June 2016
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September 2016
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May 2017
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April 2015
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AA
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Korea Investors Service, Inc. (AAA ~ D)
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April 2016
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May 2017
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October 2017
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May 2015
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AA
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Korea Ratings Corporation (AAA ~ D)
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April 2016
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September 2016
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May 2017
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October 2017
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(1)
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Domestic corporate bond credit ratings are generally defined to indicate the following:
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Subject instrument
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Credit rating
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Definition
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Corporate bonds
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AAA
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Strongest capacity for timely repayment.
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AA+/AA/AA-
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Very strong capacity for timely repayment. This capacity may, nevertheless, be slightly inferior than is the case for the highest rating category
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A+/A/A-
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Strong capacity for timely repayment. This capacity may, nevertheless, be more vulnerable to adverse changes in circumstances or in economic conditions than is the case for higher rating categories.
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BBB+/BBB/BBB-
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Capacity for timely repayment is adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity.
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BB+/BB/BB-
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Capacity for timely repayment is currently adequate, but that there are some speculative characteristics that make the repayment uncertain over time.
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B+/B/B-
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Lack of adequate capacity for repayment and speculative characteristics. Interest payment in time of unfavorable economic conditions is uncertain.
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CCC
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Lack of capacity for even current repayment and high risk of default.
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CC
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Greater uncertainties than higher ratings.
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C
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High credit risk and lack of capacity for timely repayment.
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D
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Insolvency.
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4
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Subject instrument
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Month of rating
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Credit rating
(1)
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Rating agency (Rating range)
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Commercial paper
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October 2015
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A1
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Korea Investors Service, Inc. (A1 ~ D)
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October 2015
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A1
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NICE Information Service Co., Ltd. (A1 ~ D)
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June 2016
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A1
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Korea Ratings Corporation (A1 ~ D)
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June 2016
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A1
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NICE Information Service Co., Ltd. (A1 ~ D)
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September 2016
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A1
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NICE Information Service Co., Ltd. (A1 ~ D)
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September 2016
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A1
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Korea Ratings Corporation (A1 ~ D)
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May 2017
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A1
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Korea Investors Service, Inc. (A1 ~ D)
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May 2017
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A1
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Korea Ratings Corporation (A1 ~ D)
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October 2017
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A1
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Korea Investors Service, Inc. (A1 ~ D)
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(1)
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Domestic commercial paper credit ratings are generally defined to indicate the following:
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Subject instrument
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Credit rating
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Definition
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Commercial paper
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A1
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Timely repayment capability is at the highest level with extremely low investment risk and is stable such that it will not be influenced by any reasonably foreseeable changes in external factors.
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A2
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Strong capacity for timely repayment with very low investment risk. This capacity may, nevertheless, be slightly inferior than is the case for the highest rating category.
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A3
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Capacity for timely repayment is adequate with low investment risk. This capacity may, nevertheless, be somewhat influenced by sudden changes in external factors.
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B
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Capacity for timely repayment is acknowledged, but there are some speculative characteristics.
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C
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Capacity for timely repayment is questionable.
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D
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Insolvency.
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‘+’ or ‘-’ modifier can be attached to ratings A2 through B to differentiate ratings within broader rating categories.
5
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(1)
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Change in capital stock (as of September 30, 2017)
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There were no changes to our issued
capital stock during the quarterly reporting period ended September 30, 2017.
Not applicable.
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D.
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Voting rights (as of September 30, 2017)
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(Unit: share)
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Description
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Number of shares
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A. Total number of shares issued
(1)
:
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Common shares
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(1)
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357,815,700
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Preferred shares
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—
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B. Shares without voting rights:
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Common shares
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—
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Preferred shares
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—
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C. Shares subject to restrictions on voting rights pursuant to our articles of
incorporation:
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Common shares
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—
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Preferred shares
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—
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D. Shares subject to restrictions on voting rights pursuant to regulations:
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Common shares
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—
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Preferred shares
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—
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E. Shares with restored voting rights:
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Common shares
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—
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Preferred shares
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—
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Total number of issued shares with voting rights (=A – B – C – D + E):
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Common shares
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357,815,700
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Preferred shares
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—
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(1)
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Authorized: 500,000,000 shares
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Dividends for the three most recent fiscal years
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Description (unit)
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2017 Q1~Q3
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2016
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2015
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Par value (Won)
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5,000
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5,000
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5,000
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Profit for the period (million
Won)
(1)
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1,765,772
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906,713
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966,553
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Earnings per share
(Won)
(2)
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4,935
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2,534
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2,701
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Total cash dividend amount for the period (million Won)
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—
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178,908
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178,908
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Total stock dividend amount for the period (million Won)
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—
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—
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—
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Cash dividend payout ratio
(%)
(3)
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—
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19.73
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%
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18.51
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%
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Cash dividend yield (%)
(4)
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Common shares
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—
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1.58
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%
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1.97
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%
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Preferred shares
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—
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—
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—
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Stock dividend yield (%)
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Common shares
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—
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—
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—
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Preferred shares
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—
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—
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—
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Cash dividend per share (Won)
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Common shares
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—
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500
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500
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Preferred shares
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—
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—
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—
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Stock dividend per share (share)
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Common shares
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—
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—
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—
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Preferred shares
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—
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—
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—
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(1)
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Based on profit for the period attributable to the owners of the controlling company.
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(2)
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Earnings per share is based on par value of
W
5,000 per share and is calculated by dividing net income by weighted average number of common shares.
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(3)
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Cash dividend payout ratio is the percentage that is derived by dividing total cash dividend by profit for the period attributable to the owners of the controlling company.
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6
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(4)
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Cash dividend yield is the percentage that is derived by dividing cash dividend by the arithmetic average of the daily closing prices of our common shares during the
one-week
period ending two trading days prior to the closing of the register of shareholders for the purpose of determining the shareholders entitled to receive annual dividends.
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We were incorporated in February 1985 under the laws of the Republic of
Korea. LG Electronics and LG Semicon transferred their respective LCD business to us in 1998, and since then, our business has been focused on the research, development, manufacture and sale of display panels, applying technologies such as
TFT-LCD
and OLED.
As of September 30, 2017, in order to support our business activities, we
operated
TFT-LCD
and OLED production and research facilities in Paju and Gumi in Korea, and we have also established subsidiaries in the Americas, Europe and Asia.
As of September 30, 2017, our business consisted of the manufacture and sale of display and display related products utilizing
TFT-LCD,
OLED and other technologies under a single reporting business segment.
2017 Q1~Q3 consolidated operating
results highlights
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(Unit: In billions of Won)
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2017 Q1~Q3
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Display business
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Sales Revenue
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20,664
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Gross Profit
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4,489
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Operating Profit
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2,417
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(1)
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Industry characteristics and growth potential
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•
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The entry barriers to manufacture display panels are relatively high due to the technology and capital intensive nature of the mass manufacturing process that is required to achieve economies of scale, among other
factors.
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•
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While growth in the market for displays used in notebook computer, monitor and other traditional IT products has stagnated or declined, the market for small- and medium-sized displays (including those used in
smartphones) in the rapidly evolving IT environment has shown steady growth. The display market for televisions has also shown steady growth mainly due to growing demand from developing countries as well as from consumers in general for larger sized
display panels. As for displays used in industrial, automobile and other value added products, we expect to see growth in these markets.
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•
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The display panel business is highly cyclical and sensitive to fluctuations in the general economy. The industry experiences recurring volatility caused by imbalances between supply and demand due to capacity expansion
and changing production utilization rates within the industry.
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•
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Macroeconomic factors and other causes of business cycles can affect the rate of growth in demand for display panels. Accordingly, if supply exceeds demand, average selling prices of display panels may decrease.
Conversely, if growth in demand outpaces growth in supply, average selling prices may increase.
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7
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•
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Recently, various Chinese manufacturers have been actively reviewing making investments in ultra-large scale production facilities in order to secure competitiveness in the large display panel market. As a result, there
is a concern regarding excessive competition in the LCD industry.
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•
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Most display panel manufacturers are located in Asia.
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a.
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Korea: LG Display, Samsung Display, etc.
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b.
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Taiwan: AU Optronics, Innolux, CPT, HannStar, etc.
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c.
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Japan: Japan Display, Sharp, Panasonic LCD, etc.
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d.
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China: BOE, CSOT, CEC Panda, etc.
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•
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Our worldwide market share of
large-sized
display panels (i.e., panels that are 9 inches or larger) based on revenue is as follows:
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2017 Q1~Q3
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2016
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2015
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Panels for Televisions
(1)
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28.6
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%
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28.2
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%
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25.4
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%
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Panels for Monitors
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36.1
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%
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36.6
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%
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39.0
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%
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Panels for Notebook Computers
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21.3
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%
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27.8
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%
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27.3
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%
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Panels for Tablet Computers
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28.3
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%
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24.1
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%
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22.5
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%
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Total
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29.5
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%
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29.4
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%
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27.7
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%
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Source: Large-Area Display Market Tracker (IHS Technology)
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(1)
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Includes panels for public displays.
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•
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Our ability to compete successfully depends on factors both within and outside our control, including product pricing, our relationship with customers, timely investments, adaptable production capabilities, development
of new and premium products through technological advances, competitive production costs, success in marketing to our
end-brand
customers, component and raw material supply costs, foreign exchange rates and
general economic and industry conditions.
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•
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In order to compete effectively, it is critical to be cost competitive and maintain stable and
long-term
relationships with customers which will enable us to be profitable even in
a buyer’s market.
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•
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A substantial portion of our sales is attributable to a limited number of
end-brand
customers and their designated system integrators. The loss of these
end-brand
customers, as a result of customers entering into strategic supplier arrangements with our competitors or otherwise, would result in reduced sales.
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•
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Developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. It is important that we take active measures to protect our intellectual
property internationally by obtaining patents and undertaking monitoring activities in our major markets. It is also necessary to recruit and retain experienced key managerial personnel and skilled line operators.
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8
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•
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As a leading technology innovator in the display industry, we continue to focus on delivering differentiated value to our customers by developing various technologies and products, including display panels with OLED,
IPS, in-TOUCH and other technologies. With respect to OLED panels, following our supply of the world’s first
55-inch
OLED 3D panels for televisions in January 2013, we have supplied ultra-high definition
(“Ultra HD”) OLED panels for televisions, flexible plastic OLED panels for smartphones, round OLED panels for wearable devices among others and have shown that we are technologically a step ahead of the competition. With respect to TFT-LCD
panels, we are leading the market with our differentiated products with IPS technology, such as our ultra-large and high definition Ultra HD television panels and 21:9 screen aspect ratio ultra-wide IPS curved monitors, and have prepared our
production facilities to produce products with in-TOUCH technology.
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•
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Moreover, we entered into
long-term
sales contracts with major global firms to secure customers and expand partnerships for technology development.
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For our continued growth, we are actively exploring and preparing for new
business opportunities that may arise in the changing market environment. As such, we are continually reviewing and looking at opportunities in the display and promising new industries.
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3.
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Major Products and Raw Materials
|
We manufacture
TFT-LCD
and OLED panels,
of which a significant majority is sold overseas.
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(Unit: In billions of Won, except percentages)
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Business area
|
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Sales type
|
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Items (Market)
|
|
Usage
|
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Major
trademark
|
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Sales in 2017 Q1~Q3 (%)
|
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Display
|
|
Product/ Service/ Other sales
|
|
Display panel (Overseas
(1)
)
|
|
Panels for notebook computers, monitors, televisions, smartphones, tablets, etc.
|
|
LG Display
|
|
19,239 (93.1%)
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Display panel (Korea
(1)
)
|
|
Panels for notebook computers, monitors, televisions, smartphones, tablets, etc.
|
|
LG Display
|
|
1,425 (6.9%)
|
|
|
|
|
|
|
|
|
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Total
|
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20,664 (100.0%)
|
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•
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|
Period: January 1, 2017 ~ September 30, 2017.
|
|
(1)
|
Based on
ship-to-party.
|
|
|
B.
|
Average selling price trend of major products
|
The average selling price of LCD panels per
square meter of net display area shipped in the third quarter of 2017 increased by approximately 5% compared to the second quarter of 2017, largely as a result of a comparative increase in the shipment of small- and medium-sized panels, which
generally have higher selling prices per square meter of net display area compared to other panels, while average selling prices of LCD panels exhibited varying trends according to demand by product category. There is no assurance that the average
selling prices of LCD panels will not fluctuate in the future due to changes in market conditions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: US$ / m
2
)
|
|
|
Description
|
|
2017 Q3
|
|
|
2017 Q2
|
|
|
2017 Q1
|
|
|
2016 Q4
|
|
|
Display panel
(1)(2)
|
|
|
600
|
|
|
|
574
|
|
|
|
608
|
|
|
|
642
|
|
|
(1)
|
Quarterly average selling price per square meter of net display area shipped.
|
|
(2)
|
Excludes
semi-finished
products in the cell process.
|
9
Prices of major raw materials depend on fluctuations in supply and demand
in the market as well as on change in size and quantity of raw materials due to the increased production of
large-sized
panels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In billions of Won, except percentages)
|
|
|
Business area
|
|
Purchase type
|
|
|
Items
|
|
|
Usage
|
|
|
Cost
(1)
|
|
|
Ratio (%)
|
|
|
Suppliers
|
|
|
Display
|
|
|
Raw materials
|
|
|
|
Backlights
|
|
|
|
Display panel
manufacturing
|
|
|
|
2,084
|
|
|
|
20.0
|
%
|
|
|
HeeSung Electronics, etc.
|
|
|
|
|
|
Polarizers
|
|
|
|
|
1,565
|
|
|
|
15.0
|
%
|
|
|
LG Chem, etc.
|
|
|
|
|
|
Glass
|
|
|
|
|
1,257
|
|
|
|
12.1
|
%
|
|
|
NEG, Asahi Glass, etc.
|
|
|
|
|
|
Printed circuit boards
|
|
|
|
|
997
|
|
|
|
9.6
|
%
|
|
|
Korea SMT, etc.
|
|
|
|
|
|
Others
|
|
|
|
|
4,503
|
|
|
|
43.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,407
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
|
Period: January 1, 2017 ~ September 30, 2017.
|
|
(1)
|
Based on total cost for purchase of raw materials which includes manufacturing and development costs, etc.
|
|
4.
|
Production and Equipment
|
|
|
A.
|
Production capacity and output
|
The table below sets forth the production capacity of our Gumi, Paju,
Guangzhou and Ochang facilities in the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: 1,000 glass sheets)
|
|
|
Business area
|
|
Items
|
|
|
Location of facilities
|
|
2017 Q1~Q3
(1)
|
|
|
2016
(2)
|
|
|
2015
(2)
|
|
|
Display
|
|
|
Display panel
|
|
|
Gumi, Paju,
Guangzhou, Ochang
|
|
|
7,723
|
|
|
|
9,906
|
|
|
|
9,781
|
|
|
(1)
|
Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth generation glass sheets) during the period multiplied by the number of months in the period (i.e., 6 months).
|
|
(2)
|
Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth generation glass sheets) during the year multiplied by the number of months in a year (i.e., 12 months).
|
The table below sets forth the production output of our Gumi, Paju,
Guangzhou and Ochang facilities in the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: 1,000 glass sheets)
|
|
|
Business area
|
|
Items
|
|
|
Location of facilities
|
|
2017 Q1~Q3
|
|
|
2016
|
|
|
2015
|
|
|
Display
|
|
|
Display panel
|
|
|
Gumi, Paju,
Guangzhou, Ochang
|
|
|
6,858
|
|
|
|
8,996
|
|
|
|
8,609
|
|
|
|
•
|
|
Based on glass input substrate size for eighth generation glass sheets.
|
|
|
B.
|
Production performance and utilization ratio
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: Hours, except percentages)
|
|
Production facilities
|
|
Available working hours
in 2017 Q1~Q3
|
|
Actual working hours
in 2017 Q1~Q3
|
|
Average utilization ratio
|
|
Gumi
|
|
6,552
(1)
(273 days)
(2)
|
|
6,340
(1)
(264 days)
(2)
|
|
96.8%
|
|
Paju
|
|
6,552
(1)
(273 days)
(2)
|
|
6,552
(1)
(273 days)
(2)
|
|
100.0%
|
|
Guangzhou
|
|
6,552
(1)
(273 days)
(2)
|
|
6,552
(1)
(273 days)
(2)
|
|
100.0%
|
|
Ochang
|
|
6,552
(1)
(273 days)
(2)
|
|
5,688
(1)
(237 days)
(2)
|
|
86.8%
|
|
(1)
|
Based on the assumption that all 24 hours in a day have been fully utilized.
|
|
(2)
|
Number of days is calculated by averaging the number of working days for each facility.
|
In 2016, our total capital expenditures on a cash out basis was
W
3.7 trillion. In 2017, we plan to continue capital expenditures to lead the market for OLED panels, prepare for mass production of future display products and respond to increases in demand for large-sized panels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In billions of Won)
|
|
|
Business area
|
|
Sales types
|
|
|
Items (Market)
|
|
2017 Q1~Q3
|
|
|
2016
|
|
|
2015
|
|
|
Display
|
|
|
Products, etc.
|
|
|
|
Display panel
|
|
|
Overseas
(1)
|
|
|
19,239
|
|
|
|
24,679
|
|
|
|
26,166
|
|
|
|
|
|
Korea
(1)
|
|
|
1,425
|
|
|
|
1,825
|
|
|
|
2,218
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
20,664
|
|
|
|
26,504
|
|
|
|
28,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Based on
ship-to-party.
|
|
|
B.
|
Sales route and sales method
|
|
|
•
|
|
As of September 30, 2017, each of our television, IT, mobile and OLED businesses had individual sales and customer support functions.
|
|
|
•
|
|
Sales subsidiaries in the United States, Germany, Japan, Taiwan, China and Singapore perform sales activities and provide local technical support to customers.
|
Sales of our products take place through one of the following two routes:
|
|
•
|
|
LG Display HQ and overseas manufacturing subsidiaries
g
Overseas sales subsidiaries (USA/Germany/Japan/Taiwan/China/Singapore), etc.
g
System integrators and
end-brand
customers
g
End users
|
|
|
•
|
|
LG Display HQ and overseas manufacturing subsidiaries
g
System integrators and
end-brand
customers
g
End users
|
|
|
(3)
|
Sales methods and sales terms
|
|
|
•
|
|
Direct sales and sales through overseas subsidiaries, etc. Sales terms are subject to change depending on the fluctuation in the supply and demand of LCD panels.
|
11
|
|
•
|
|
As part of our sales strategy, we have secured stable sales to major personal computer manufacturers and leading consumer electronics manufacturers globally, led the television market with our OLED and other market
leading television panels, increased the proportion of sales of our differentiated television panels, such as our Ultra HD and large television panels, in our product mix and strengthened sales of
high-resolution,
IPS, narrow bezel and other
high-end
display panels in the monitor, notebook computer and tablet markets.
|
|
|
•
|
|
In the smartphone, commercial products (including interactive whiteboards and video wall displays), industrial products (including aviation and medical equipment) and automobile displays segments, we have continued to
build a strong and diversified business portfolio by expanding our business with customers with a global reach on the strength of our differentiated products applying IPS, plastic OLED,
high-resolution,
high-reliability, Super Narrow bezel, in-TOUCH and other technologies.
|
|
|
•
|
|
Customers generally place purchase orders with us one month prior to delivery. Our customary practice for procuring orders from our customers and delivering our products to such customers is as follows:
|
|
|
•
|
|
Receive order from customer (overseas sales subsidiaries, etc.)
g
Headquarter is notified
g
Manufacture product
g
Ship product (overseas sales subsidiaries, etc.)
g
Sell product (overseas sales subsidiaries, etc.)
|
|
6.
|
Market Risks and Risk Management
|
The display industry continues to experience continued declines in the average
selling prices of
TFT-LCD
and OLED panels irrespective of cyclical fluctuations in the industry, and our margins would be adversely impacted if prices decrease faster than we are able to reduce our costs.
The display industry is highly competitive. We have experienced pressure on the prices and margins of our major products due largely to
additional industry capacity from panel manufacturers in Korea, Taiwan, China and Japan coupled with changes in the production mix of such manufacturers.
Our ability to compete successfully depends on factors both within and outside our control, including product pricing, performance and
reliability, timely investments, adaptable production capabilities, utilization of differentiated technologies in product development, success or failure of our
end-brand
customers in marketing their brands
and products, component and raw material supply costs, and general economic and industry conditions. We cannot provide assurance that we will be able to compete successfully with our competitors on these fronts and, as a result, we may be unable to
sustain our current market position.
Our results of operations are subject to exchange rate fluctuations. To the extent that we incur
costs in one currency and generate sales in a different currency, our profit margins may be affected by changes in the exchange rates between the two currencies. Our sales of display panels are denominated mainly in U.S. dollars, whereas our foreign
currency denominated purchases of raw materials are denominated mainly in U.S. dollars and Japanese Yen. Seeking to achieve stable management, we take every precaution in our foreign currency risk management to minimize the risk of foreign currency
fluctuations on our foreign currency denominated assets and liabilities.
12
As the average selling prices of
TFT-LCD
and OLED panels can continue to decline over time irrespective of
industry-wide
cyclical fluctuations, we may find it hard to manage risks associated with
certain factors that are outside our control. However, we counteract such declines in average selling prices by increasing the proportion of high value added panels in our product mix while also implementing various cost reduction measures. In
addition, in order to manage our risk against foreign currency fluctuations, we continually monitor our currency position and risk, and when needed, we may from time to time enter into
cross-currency
interest
rate swap contracts and foreign currency forward contracts.
|
|
•
|
|
We are exposed to currency risks on sales, purchases and borrowings that are denominated in currencies other than in Won, our functional currency. These currencies are primarily the U.S. dollar, the Japanese Yen and the
Chinese Yuan.
|
|
|
•
|
|
Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by our underlying operations, primarily in Won, the U.S.
dollar and the Chinese Yuan.
|
|
|
•
|
|
In respect of other monetary assets and liabilities denominated in foreign currencies, we ensure that our net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates, when
necessary, to address
short-term
imbalances.
|
|
|
•
|
|
During the first nine months of 2017, we entered into an aggregate of US$100 million in Won/US$ forward foreign exchange contracts with Shinhan Bank and HSBC, which contracts were subsequently settled on June 26,
2017. As of September 30, 2017, there are no outstanding amounts to be settled under our foreign currency derivative instruments.
|
We recognized a gain on valuation of derivative instruments in the amount of
W
3,106 million with respect to foreign exchange
derivative instruments held during the first nine months of 2017.
|
|
•
|
|
Our exposure to interest rate risks relates primarily to our floating rate long term loan obligations. We have established and are managing interest rate risk policies to minimize uncertainty and costs associated with
interest rate fluctuations by monitoring cyclical interest rate fluctuations and enacting countermeasures.
|
|
|
•
|
|
As of September 30, 2017, we have entered into an aggregate of
W
350 billion in interest rate swap agreements with Shinhan Bank and NongHyup Bank, for which we have not applied hedge accounting.
|
We recognized a gain on valuation of derivative instruments in the amount of
W
592 million with respect to
interest rate derivative instruments held during the first nine months of 2017.
13
Our material contracts, other than contracts entered into in the
ordinary course of business, are set forth below:
|
|
|
|
|
|
|
|
|
Type of agreement
|
|
Name of party
|
|
Term
|
|
Content
|
|
Technology
licensing agreement
|
|
Semiconductor Energy Laboratory
|
|
October 2005 ~
|
|
Patent licensing of LCD and OLED related technology
|
|
|
Hewlett-Packard
|
|
January 2011 ~
|
|
Patent licensing of
semi-conductor
device technology
|
|
|
Ignis Innovation, Inc.
|
|
July 2016 ~
|
|
Patent licensing of OLED related technology
|
|
Technology licensing/supply agreement
|
|
HannStar Display Corporation
|
|
December 2013 ~
|
|
Patent
cross-licensing
of LCD technology
|
|
|
AU Optronics Corporation
|
|
August 2011~
|
|
Patent
cross-licensing
of LCD technology
|
|
|
Innolux Corporation
|
|
July 2012 ~
|
|
Patent
cross-licensing
of LCD technology
|
|
|
Universal Display Corporation
|
|
January 2015 ~ December 2022
|
|
Patent cross-licensing of OLED related technology
|
|
9.
|
Research & Development
|
|
|
A.
|
Summary of
R&D-related
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won, except percentages)
|
|
|
Items
|
|
2017 Q1~Q3
|
|
|
2016
|
|
|
2015
|
|
|
Material Cost
|
|
|
468,972
|
|
|
|
677,423
|
|
|
|
679,603
|
|
|
Labor Cost
|
|
|
482,611
|
|
|
|
479,650
|
|
|
|
510,455
|
|
|
Depreciation Expense
|
|
|
218,826
|
|
|
|
136,826
|
|
|
|
196,799
|
|
|
Others
|
|
|
212,339
|
|
|
|
129,348
|
|
|
|
159,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
R&D-Related
Expenditures
|
|
|
1,382,748
|
|
|
|
1,423,247
|
|
|
|
1,546,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling & Administrative Expenses
|
|
|
661,991
|
|
|
|
880,794
|
|
|
|
995,336
|
|
|
Accounting
Treatment
(1)
|
|
Manufacturing Cost
|
|
|
468,509
|
|
|
|
220,165
|
|
|
|
324,437
|
|
|
|
|
Development Cost (Intangible Assets)
|
|
|
252,248
|
|
|
|
322,288
|
|
|
|
227,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D-Related
Expenditures / Revenue Ratio
(Total
R&D-Related
Expenditures ÷ Revenue for the period × 100)
|
|
|
6.7
|
%
|
|
|
5.4
|
%
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For accounting treatment purposes, selling & administrative expenses are presented as research and development expenses in our statements of comprehensive income, net of amortization of capitalized intangible
asset development costs.
|
Achievements in 2015
|
|
(1)
|
Developed the world’s narrowest, at the time, module bezel (0.7mm) LTPS smartphone display
(5.3-inch
FHD in-TOUCH)
|
|
|
•
|
|
Developed the world’s first FHD in-TOUCH display (LTPS 5.3-inch FHD) applying the “Neo Edge” module process (new manufacturing technology) in January 2015
|
|
|
•
|
|
Set-up glue & laser cutting process, 0.6mm panel bezel (L/R)
|
|
|
(2)
|
Developed the world’s first QHD in-TOUCH LTPS smartphone display (5.5-inch QHD)
|
|
|
•
|
|
Developed LTPS 5.5-inch QHD display applying LG Display’s new capacitive type in-cell touch technology with “all points sensing” in March 2015; luminance: 500nit, contrast ratio: 1500:1(using photo
alignment & negative LC), 0.95mm panel bezel (L/R)
|
14
|
|
•
|
|
Delivered differentiated value proposition based on touch performance, simplified SCM process and competitive cost innovation
|
|
|
(3)
|
Developed the world’s narrowest, at the time, bezel videowall product (49-inch FHD)
|
|
|
•
|
|
Developed the world’s narrowest bezel videowall product (bezel to bezel 3.5mm)
|
|
|
•
|
|
Optimized sizing of panel PAD and mechanical bezel
|
|
|
(4)
|
Developed 43-inch Ultra HD slim and light LED television product
|
|
|
•
|
|
Achieved LCD module thickness of 8.4mm
|
|
|
•
|
|
Reduced thickness through publication of set LCM parts (back cover and middle cabinet)
|
|
|
(5)
|
Developed the world’s first Ultra HD OLED television product (55-inch, 65-inch and 77-inch Ultra HD)
|
|
|
•
|
|
Developed the world’s first Ultra HD television product lineup
|
|
|
(6)
|
Developed the world’s first Ultra HD television product applying DRD technology (55-inch, 49-inch and 43-inch Ultra HD)
|
|
|
•
|
|
World’s first application of Ultra HD DRD technology based on an RGBW(M+) pixel structure
|
|
|
•
|
|
Utilized RGBW(M+) technology to optimize picture quality (high definition, high luminance, low energy consumption and High Dynamic Range (“HDR”))
|
|
|
(7)
|
Developed Ultra HD asymmetric RGBW(M+) structure product
(15.6-inch)
|
|
|
•
|
|
Improved panel transmittance, lowered energy consumption and enhanced outdoor visibility compared to previous models
|
|
|
(8)
|
Developed the world’s first “second display” LTPS smartphone product
(5.7-inch
QHD+)
|
|
|
•
|
|
Delivered differentiated set design through the realization of a second display by applying a panel exterior manufacturing process
|
|
|
•
|
|
Developed panel and instrumental optics technology for the independent operation of main display and second display
|
|
|
•
|
|
Developed advanced power consumption technology for the realization of “Always On Display” functionality for the second display
|
|
|
(9)
|
Developed the world’s first four-sided borderless monitor product (23.8-inch FHD and 27-inch QHD)
|
|
|
•
|
|
Developed the world’s first four-sided borderless design LCD module
|
|
|
•
|
|
Improved design by reducing lower bezel size from 12.6mm to 6.15mm (23.8-inch FHD)
|
|
|
(10)
|
Developed the world’s first in-TOUCH notebook product (15.6-inch and 14-inch FHD)
|
|
|
•
|
|
Improved touch functionality and cost competitiveness through world’s first application of in-TOUCH technology on notebook products
|
|
|
•
|
|
Simplified customer supply chain management by providing “touch” total solution
|
|
|
(11)
|
Developed the world’s first 15.6-inch FHD notebook narrow bezel (2.9mm) product
|
|
|
•
|
|
Ultra-light and narrow concept project for 15.6-inch line extension to LG Electronics’ 13.3-inch and 14-inch Gram products
|
|
|
•
|
|
Delivered differentiated design utilizing 2.9mm bezels (Top/L/R)
|
|
|
•
|
|
Ultra slim and light design (225g, 2.3t)
|
|
|
(12)
|
Developed 1900R curved monitor product (34-inch, 21:9 screen aspect ratio)
|
|
|
•
|
|
Strengthened product competitiveness by improving the curvature radius of 21:9 screen aspect ratio monitors (3800 reduced to 1900R)
|
|
|
•
|
|
Applied 0.25T etching to address looseness and backlight bleeding attributable to curved screen
|
|
|
•
|
|
Applied COT structure to enhance panel transmittance and address color mixing defects
|
|
|
(13)
|
Developed the world’s first four-sided borderless 55-inch Ultra HD LED television product
|
15
|
|
•
|
|
Developed panel reverse structure in order to deliver a four-sided borderless product
|
|
|
(14)
|
Developed the world’s first a-Si 98-inch Quad Ultra HD 120Hz television product
|
|
|
•
|
|
Developed the world’s first drive technology for a-Si based extra-large 8K 120Hz panels
|
|
|
(15)
|
Developed the world’s first 65-inch 8K M+ product
|
|
|
•
|
|
Achieved cost competitiveness and maximized 8K transmittance by applying GIP/Source single bank for the first time in the world
|
|
|
•
|
|
Developed super resolution (4K enhanced to 8K) and M+ algorithm technologies
|
|
|
(16)
|
Developed 75-inch Ultra HD Signage product
|
|
|
•
|
|
Delivered 11.9mm thickness on large-size LCD module
|
Achievements in 2016
|
|
(1)
|
Developed the world’s narrowest, at the time, bezel videowall product (55-inch/49-inch FHD, bezel to bezel 1.8mm)
|
|
|
•
|
|
Delivered 0.9mm even bezel, four-sided borderless product (bezel to bezel 1.8mm)
|
|
|
(2)
|
Developed the world’s first ultra-stretch format display product (86-inch, 58:9 screen aspect ratio)
|
|
|
•
|
|
Developed new display panel size and screen aspect ratio (86-inch, 58:9 screen aspect ratio)
|
|
|
•
|
|
Applied next-generation stain (per pixel) offset technology
|
|
|
(3)
|
Developed the world’s first ultra-large display product utilizing data single bank and GIP technology (86-inch Ultra HD)
|
|
|
•
|
|
Achieved cost-competitiveness by developing world’s first ultra-large display product utilizing data single bank and GIP technology
|
|
|
(4)
|
Developed the world’s first in-TOUCH monitor product (23-inch)
|
|
|
•
|
|
Improved touch functionality and strengthened cost-competitiveness by applying the world’s first in-TOUCH technology to monitor display products
|
|
|
•
|
|
Simplified customer software configuration management by providing touch total solution
|
|
|
(5)
|
Developed ultra-slim OLED television display product applying high dynamic range (65-inch, 800 nit luminance, 2.52 mm module thickness)
|
|
|
•
|
|
Applied high dynamic range (HDR) technology to achieve 800 nit peak luminance and improved display quality
|
|
|
•
|
|
Achieved module thickness of 2.52mm (without back cover) and 5.92mm (with back cover)
|
|
|
(6)
|
Developed combined 5.3-inch QHD in-TOUCH + 3D cover glass product for LG Electronics
|
|
|
•
|
|
Developed world class smartphone product (G5) through collaboration with other LG Group companies
|
|
|
•
|
|
Strengthened competitiveness of design by achieving processability and productivity for 0.4t 3D cover glass
|
|
|
•
|
|
Improved power consumption of AoD Mode from Self Font Generation technology and operation optimization
|
|
|
(7)
|
Developed the world’s first large-scale outdoor high luminance 3000 nit product (75-inch Ultra HD)
|
|
|
•
|
|
Developed the world’s first large-scale outdoor 75-inch Ultra HD, high luminance 3000 nit product
|
|
|
•
|
|
Achieved cost competitiveness and power consumption reduction through utilization of high transmittance M+ panel
|
|
|
(8)
|
Developed the world’s first FHD/Ultra HD multi-input Interactive Whiteboard product (75-inch Ultra HD)
|
|
|
•
|
|
Strengthened product competitiveness through delivery of customer FHD/Ultra HD selective input functionality
|
|
|
(9)
|
Developed 4.9mm depth Art Slim2 Ultra HD television (55-inch/65-inch Ultra HD)
|
|
|
•
|
|
Strengthened design competitiveness through delivery of ultra-slim product with application of Glass Light Guide Plate
|
|
|
(10)
|
Developed the world’s largest 21:9 screen aspect ratio curved monitor (37.5-inch UltraWide Quad HD (“WQHD”)+)
|
16
|
|
•
|
|
Continued pioneering of the market with the world’s largest 21:9 screen aspect ratio IPS curved monitor lineup (37.5-inch, 2300R curvature radius, 44mm curvature depth)
|
|
|
•
|
|
Established flagship line through application of new high definition technology (WQHD+, 3840 x 1600 resolution)
|
|
|
•
|
|
Improved panel transmittance and backlight bleeding through our first-time application of a Super-IPS COT panel structure to monitor models
|
|
|
(11)
|
Developed the world’s first in-TOUCH GIP/DRD notebook product (15.6-inch FHD)
|
|
|
•
|
|
Strengthened competitiveness through application of GIP/DRD technology to FHD-quality notebook in-TOUCH products
|
|
|
(12)
|
Developed a transparent 32-inch FHD product
|
|
|
•
|
|
Achieved high transmittance of transparent panel through application of RGBW(M+) panel technology
|
|
|
(13)
|
Developed the world’s first Light Absorption Polarizer (“LAP”) product (65-inch/60-inch Ultra HD)
|
|
|
•
|
|
Developed differentiated wide color gamut solution
|
|
|
(14)
|
Developed the world’s first Ultra HD DRD product (50-inch Ultra HD)
|
|
|
•
|
|
Utilized Ultra HD RGBW(M+) pixel structure-based DRD technology to strengthen product competitiveness and optimize picture quality (high definition, high luminance, low energy consumption and HDR)
|
|
|
(15)
|
Developed a 5.7-inch QHD flexible display product
|
|
|
•
|
|
Developed a flexible display smartphone product through collaboration with other LG Group companies
|
|
|
•
|
|
Reduced the lower bezel size by 0.59mm and improved power consumption by applying VESA Display Stream Compression 1.1
|
|
|
(16)
|
Developed the world’s first wallpaper OLED television product (65-inch Ultra HD)
|
|
|
•
|
|
Achieved an ultra-slim wallpaper-style design that completely sticks to walls (65-inch, 3.9 mm hindmost thickness, 7.4 kg)
|
|
|
•
|
|
Achieved long-distance signal and power transmission technology for the separation of the driver circuit
|
Achievements in 2017
|
|
(1)
|
Developed 5.7-inch QHD+ full vision display (LG Electronics)
|
|
|
•
|
|
Developed a full vision display smartphone product (G6) through strategic collaboration with other LG Group companies
|
|
|
•
|
|
Applied first 18:9 screen aspect ratio with 4-corner round display
|
|
|
(2)
|
Developed mobile LTPS 30Hz product (SH 5.1-inch FHD)
|
|
|
•
|
|
Secured 30Hz low-frequency drive technology based on LTPS TFT-LCD
|
|
|
•
|
|
Reduced logic power consumption through 30Hz low-frequency drive (reduced from 96mW to 69mW on 5.1-inch FHD)
|
|
|
(3)
|
Developed and released the world’s first Crystal Sound OLED, or CSO, television product
|
|
|
•
|
|
Released product with a new platform concept through development of OLED panel product with integrated speakers
|
|
|
•
|
|
Delivered OLED television product that achieves differentiated value not only in picture quality and design, but also sound quality
|
|
|
(4)
|
Developed notebook oxide product (13.9-inch, Ultra HD)
|
|
|
•
|
|
Achieved high definition/narrow bezel product through application of oxide BCE GIP technology
|
|
|
•
|
|
Delivered low power consumption product through application of low refresh rate, or LRR, technology
|
|
|
(5)
|
Developed medical monitor product for surgical endoscope (27.0-inch, Ultra HD)
|
|
|
•
|
|
Newly entered the medical devices market through development and production of medical monitor product for surgical endoscope
|
|
|
•
|
|
Achieved high definition (3,840 x 2,160), high luminance (800 nit) and high contrast ratio (1,300:1)
|
|
|
•
|
|
Implemented coverglass direct bonding applying our own manufacturing processes (M6 line)
|
17
|
|
(6)
|
Developed the world’s first four-side borderless monitor with a resolution of 8K4K (31.5-inch 8K4K Oxide)
|
|
|
•
|
|
Pioneered Ultra HD Premium MNT market through development of the world’s first four-side borderless monitor with a resolution of 8K4K
|
|
|
•
|
|
Delivered Ultra HD based on oxide GIP (280 PPI with a resolution of 7680x4320)
|
|
|
•
|
|
Delivered wide color gamut (Adobe RGB 100%/DCI 98%), four-side borderless
|
|
|
(7)
|
Developed the world’s largest automotive Center Information Display (“CID”) product (15.4-inch Widescreen Ultra Extended Graphics Array (“WUXGA”))
|
|
|
•
|
|
Developed the world’s largest auto component display in the automotive industry
|
|
|
•
|
|
Guaranteed the first 1000hr reliability in the automotive industry
|
|
|
(8)
|
Developed the world’s first 88-inch Ultra Stretch display product
|
|
|
•
|
|
Strengthened competitiveness through application of smart (digital) stepper
|
|
10.
|
Intellectual Property
|
As of September 30, 2017, our cumulative patent portfolio
(including patents that have already expired) included a total of 33,671 patents, consisting of 15,747 in Korea and 17,924 in other countries.
|
11.
|
Environmental and Safety Matters
|
We are subject to a variety of environmental laws and
regulations, and we may be subject to fines or restrictions that could cause our operations to be interrupted. Our manufacturing processes generate worksite waste, including water and air pollutants, at various stages in the manufacturing process,
and we are subject to relevant laws and regulations in each area of the environment, including with respect to the treatment of chemical
by-products.
We have installed various types of
anti-pollution
equipment, consistent with environmental standards, for the treatment of chemical waste and equipment for the recycling of treated waste water at our various facilities. However, we cannot provide
assurance that environmental claims will not be brought against us or that the local or national governments will not take steps toward adopting more stringent environmental standards. Any failure on our part to comply with any present or future
environmental regulations could result in the assessment of damages or imposition of fines against us, suspension of production or a cessation of operations. In addition, environmental regulations could require us to acquire costly equipment or to
incur other significant compliance expenses that may materially and negatively affect our financial condition and results of operations.
In accordance with the Framework Act on Low Carbon, Green Growth, we implemented the greenhouse gas emission and energy consumption target
system from 2012 to 2014. In 2015, we implemented the greenhouse gas trading system, under which we are responsible to meet our emission targets based on the emission credits allocated to us by the Ministry of Environment of the Korean government.
As a result, we have been investing in additional equipment and there may be other costs associated with meeting reduction targets, which may have a negative effect on our profitability or production activities. As a designated company subject to
greenhouse gas emission targets under the Framework Act on Low Carbon, Green Growth, if we fail to meet a reduction target and are unable to comply with the government’s subsequent enforcement notice relating to such failure, we may be subject
to fines. Furthermore, as a designated company subject to the Act on Allocation and Trading of Greenhouse Gas Emissions, if do not have enough emission credits, we may be required to purchase additional credits or be subject to fines.
In connection with the greenhouse gas emission and energy reduction target system, we submitted a statement of our domestic emissions and
energy usage for 2016 to the Korean government in March 2017 after it was certified by BSI Korea, a
government-designated
certification agency. The table below sets forth yearly levels of our greenhouse gases
emissions and energy usage in the statement submitted to the Korean government:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: thousand tonnes of CO
2
equivalent; Tetra Joules)
|
|
|
Category
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
Greenhouse gases
|
|
|
5,851
|
|
|
|
7,348
|
|
|
|
7,537
|
|
|
Energy
|
|
|
60,423
|
|
|
|
60,146
|
|
|
|
60,002
|
|
18
Operations at our manufacturing plants are subject to regulation and periodic scheduled and
unscheduled
on-site
inspections by the Ministry of Environment and local environmental protection authorities. We believe that we have adopted adequate
anti-pollution
measures and have minimized our impact on the environment by improving existing and developing new technologies for the effective maintenance of environmental protection standards consistent with local industry practice. In addition, we have
continually monitored, and we believe that we are in compliance in all material respects with, the applicable environmental laws and regulations in Korea. Expenditures related to such compliance may be substantial. Such expenditures are generally
included in capital expenditures. As required by Korean law, we employ licensed environmental specialists to manage our water and air pollution, toxic materials and waste. In December 2013, to ensure safe water quality and reduce costs, we entered
into a contract with a specialist company to operate our waste water treatment facilities. In stages beginning in November 1997, we have obtained environmental management system ISO 14001 certifications for our domestic panel and module production
facilities and our overseas module production plants in Nanjing, Yantai and Guangzhou, China, and with respect to our domestic panel and module production plants, we received ISO 50001 certification in December 2013 for our energy management system.
In addition, in August 2014, GP1, our newest eighth-generation panel fabrication facility located in Guangzhou, China, was the first
electronics plant in China to receive the “Green Plant” designation under China’s Green China Policy, in addition to receiving ISO 14001, ISO 50001, OHSAS 18001, ISO 9001, PAS 2050 and ISO 14064-1 certifications. Furthermore, with
respect to our production facilities in Gumi, we have been certified by the Ministry of Environment as a “Green Company” for P1 and our Gumi module production plant since 1997, P2 and P3 since 2006 and P4, P5 and P6 since 2008. Also, we
received certification to
self-inspect
designated waste products with respect to our Paju plant by the Ministry of Environment in 2011, which was recertified in 2013. In recognition of our efforts to reduce
greenhouse gas emissions, we were awarded a commendation from the Minster of Environment in the efforts against climate change category in the 2013 Green Management Awards, which was jointly hosted by the Ministry of Environment and the Ministry of
Trade, Industry & Energy. In addition, in recognition of our efforts to improve recycling and reduce waste, we received a citation in 2014 for being a leading recycling company from the Prime Minister of Korea and, in recognition of our
continued water conservation activities (reuse system investments, etc.) and greenhouse gas emission reduction activities (process gas and energy reduction, etc.), we attained the highest level, Leadership A, and received the grand prize award at
the CDP Water Korea Best Awards in 2016 from the Carbon Disclosure Project, which was presided over by the Carbon Disclosure Project Korea Committee. We also attained a Leadership A in the climate change information technology sector and received a
carbon management honors award. In 2017, in recognition of efficient control, management and operating systems implemented in our manufacturing facilities, we received the top-level certification, Level 1, under the Factory Energy Management System
evaluation presided by the Korea Energy Agency.
In the case of the European Union’s Restriction of Hazardous Substances (RoHS)
Directive 2011/65/EU, with the adoption of Directive (EU) 2015/863 in 2016, four additional substances (four phthalate substances) will be added to the six already restricted substances and the additional restrictions are scheduled to come into
effect on July 22, 2019. In order to address the latent risk elements of the four phthalate substances scheduled to be restricted in 2019 and to establish a more stable management system, we implemented in 2016 a preemptive response process
with respect to such four phthalate substances. In implementing this process, we collaborated with external agencies to ascertain regulatory trends and establish our response strategy, and we formulated and applied effective management measures
through the collaborative efforts of our development, procurement and quality teams. Beryllium (Be) was not designated internationally as a mandatorily restricted substance but has continued to be the subject of discussion for restriction, and
certain of our customers have designated it as a restricted substance not to be used in products. Accordingly, we have completed verification of the parts used in products for customers who have banned the use of Beryllium. We have also conducted
verification of the parts used in products for all customers who are expected to implement a ban and we have established a Beryllium verification process for parts in development. Through such efforts, we have established a voluntary hazardous
substance response process that can be expanded to products for all customers, not only those who have requested a response.
In October
2005, we became the first display panel company to receive accreditation as an International Accredited Testing Laboratory by the Korea Laboratory Accreditation Scheme, which is operated by the Korean Ministry of Trade, Industry & Energy.
In September 2006, we received international accreditation from TUV SUD, EU’s German accreditation agency, as a RoHS testing laboratory. Our efforts to keep pace with the increasingly stringent accreditation standards and to receive and
maintain such accreditations are part of our
on-going
efforts to systematically monitor environmentally controlled substances in our component parts inventory. Moreover, we participated in reforming IEC 62321,
an international testing standard published by the International Electrotechnical Commission and used by RoHS, and the commission adopted our
halogen-free
combustion ion chromatography method in as IEC
62321-3-2,
which was published in June 2013.
In February 2015,
we were issued a corrective order and assessed a fine of W276 million, which we subsequently followed and paid, respectively, for violating the Occupational Health and Safety Act in connection with an accidental nitrogen gas exposure at one of our
production facilities in Paju, Korea in January 2015. In 2016, we were assessed an additional fine of W10 million in connection with such accidental exposure for other violations of the Occupational Health and Safety Act. To prevent such accidents
happening again in the future, we have strengthened our safety standards and management and employee education.
19
In 2015 and 2016, we were assessed fines in the aggregate amount of W1.6 million, which we
subsequently paid, for failure to meet certain reporting obligations under the Industrial Safety and Health Act. To prevent such violations from occurring again, we have strengthened our monitoring process and management and employee education
training initiatives.
In June 2017, we were assessed a fine of W1 million, which we subsequently paid, for failure to meet certain waste
disposal subcontractor requirements under the Waste Management Act. To prevent such violations from occurring again, we are strengthening the periodic evaluation process for our waste management subcontractors.
In June 2017, we were investigated by the Ministry of Employment and Labor in connection with the occurrence of a safety accident and found to
be in violation of certain provisions of the Industrial Safety and Health Act relating to supervisory obligations. As a result, we were issued a corrective order and assessed a fine of W2.4 million. Relevant authorities are currently conducting
further investigations. In order to prevent such accidents from occurring again, we are strengthening our safety management standards and training for our employees.
|
12.
|
Financial Information
|
|
|
A.
|
Financial highlights (Based on consolidated
K-IFRS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won)
|
|
|
Description
|
|
As of
September 30, 2017
|
|
|
As of
December 31, 2016
|
|
|
As of
December 31, 2015
|
|
|
Current assets
|
|
|
11,334,062
|
|
|
|
10,484,186
|
|
|
|
9,531,634
|
|
|
Quick assets
|
|
|
8,670,030
|
|
|
|
8,196,401
|
|
|
|
7,179,965
|
|
|
Inventories
|
|
|
2,664,032
|
|
|
|
2,287,785
|
|
|
|
2,351,669
|
|
|
Non-current
assets
|
|
|
17,457,667
|
|
|
|
14,400,150
|
|
|
|
13,045,526
|
|
|
Investments in equity accounted investees
|
|
|
119,724
|
|
|
|
172,683
|
|
|
|
384,755
|
|
|
Property, plant and equipment, net
|
|
|
15,004,141
|
|
|
|
12,031,449
|
|
|
|
10,546,020
|
|
|
Intangible assets
|
|
|
888,592
|
|
|
|
894,937
|
|
|
|
838,730
|
|
|
Other
non-current
assets
|
|
|
1,445,210
|
|
|
|
1,301,081
|
|
|
|
1,276,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
28,791,729
|
|
|
|
24,884,336
|
|
|
|
22,577,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
8,079,139
|
|
|
|
7,058,219
|
|
|
|
6,606,712
|
|
|
Non-current
liabilities
|
|
|
5,544,478
|
|
|
|
4,363,729
|
|
|
|
3,265,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
13,623,617
|
|
|
|
11,421,948
|
|
|
|
9,872,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
Share premium
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
Retained earnings
|
|
|
10,582,527
|
|
|
|
9,004,283
|
|
|
|
8,158,526
|
|
|
Other equity
|
|
|
(88,404
|
)
|
|
|
(88,478
|
)
|
|
|
(5,766
|
)
|
|
Non-controlling
interest
|
|
|
633,797
|
|
|
|
506,391
|
|
|
|
512,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
15,168,112
|
|
|
|
13,462,388
|
|
|
|
12,704,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won, except for per share data and number of
consolidated entities)
|
|
|
Description
|
|
For the nine months ended
September 30, 2017
|
|
|
For the year ended
December 31, 2016
|
|
|
For the year ended
December 31, 2015
|
|
|
Revenue
|
|
|
20,664,143
|
|
|
|
26,504,074
|
|
|
|
28,383,884
|
|
|
Operating profit
|
|
|
2,417,142
|
|
|
|
1,311,416
|
|
|
|
1,625,566
|
|
|
Operating profit from continuing operations
|
|
|
1,893,409
|
|
|
|
931,508
|
|
|
|
1,023,456
|
|
|
Profit for the period
|
|
|
1,893,409
|
|
|
|
931,508
|
|
|
|
1,023,456
|
|
|
Profit attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
|
1,765,772
|
|
|
|
906,713
|
|
|
|
966,553
|
|
|
Non-controlling
interest
|
|
|
127,637
|
|
|
|
24,795
|
|
|
|
56,903
|
|
|
Basic earnings per share
|
|
|
4,935
|
|
|
|
2,534
|
|
|
|
2,701
|
|
|
Diluted earnings per share
|
|
|
4,935
|
|
|
|
2,534
|
|
|
|
2,701
|
|
|
Number of consolidated entities
|
|
|
20
|
|
|
|
19
|
|
|
|
18
|
|
20
|
|
B.
|
Financial highlights (Based on separate
K-IFRS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won)
|
|
|
Description
|
|
As of
September 30, 2017
|
|
|
As of
December 31, 2016
|
|
|
As of
December 31, 2015
|
|
|
Current assets
|
|
|
9,093,211
|
|
|
|
8,712,575
|
|
|
|
8,246,330
|
|
|
Quick assets
|
|
|
7,221,721
|
|
|
|
7,005,592
|
|
|
|
6,396,117
|
|
|
Inventories
|
|
|
1,871,490
|
|
|
|
1,706,983
|
|
|
|
1,850,213
|
|
|
Non-current
assets
|
|
|
15,729,352
|
|
|
|
13,100,175
|
|
|
|
11,964,363
|
|
|
Investments
|
|
|
2,781,868
|
|
|
|
2,656,026
|
|
|
|
2,543,205
|
|
|
Property, plant and equipment, net
|
|
|
11,136,767
|
|
|
|
8,757,973
|
|
|
|
7,719,022
|
|
|
Intangible assets
|
|
|
697,218
|
|
|
|
673,966
|
|
|
|
607,398
|
|
|
Other
non-current
assets
|
|
|
1,113,499
|
|
|
|
1,012,210
|
|
|
|
1,094,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
24,822,563
|
|
|
|
21,812,750
|
|
|
|
20,210,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
7,047,907
|
|
|
|
6,176,344
|
|
|
|
6,505,979
|
|
|
Non-current
liabilities
|
|
|
4,453,877
|
|
|
|
3,400,959
|
|
|
|
2,375,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
11,501,784
|
|
|
|
9,577,303
|
|
|
|
8,881,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
Share premium
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
Retained earnings
|
|
|
9,280,587
|
|
|
|
8,195,255
|
|
|
|
7,289,333
|
|
|
Reserves
|
|
|
0
|
|
|
|
0
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
13,320,779
|
|
|
|
12,235,447
|
|
|
|
11,329,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won, except for per share data)
|
|
|
Description
|
|
For the nine months ended
September 30, 2017
|
|
|
For the year ended
December 31, 2016
|
|
|
For the year ended
December 31, 2015
|
|
|
Revenue
|
|
|
19,160,088
|
|
|
|
24,419,295
|
|
|
|
25,856,426
|
|
|
Operating profit
|
|
|
1,631,938
|
|
|
|
709,138
|
|
|
|
770,856
|
|
|
Operating profit from continuing operations
|
|
|
1,273,308
|
|
|
|
967,078
|
|
|
|
968,209
|
|
|
Profit for the period
|
|
|
1,273,308
|
|
|
|
967,078
|
|
|
|
968,209
|
|
|
Basic earnings per share
|
|
|
3,559
|
|
|
|
2,703
|
|
|
|
2,706
|
|
|
Diluted earnings per share
|
|
|
3,559
|
|
|
|
2,703
|
|
|
|
2,706
|
|
|
|
C.
|
Consolidated subsidiaries (as of September 30, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
Company Interest
|
|
Primary Business
|
|
Location
|
|
Equity
|
|
|
LG Display America, Inc.
|
|
Sales
|
|
U.S.A.
|
|
|
100
|
%
|
|
LG Display Japan Co., Ltd.
|
|
Sales
|
|
Japan
|
|
|
100
|
%
|
|
LG Display Germany GmbH
|
|
Sales
|
|
Germany
|
|
|
100
|
%
|
|
LG Display Taiwan Co., Ltd.
|
|
Sales
|
|
Taiwan
|
|
|
100
|
%
|
|
LG Display Nanjing Co., Ltd.
|
|
Manufacturing
|
|
China
|
|
|
100
|
%
|
|
LG Display Shanghai Co., Ltd.
|
|
Sales
|
|
China
|
|
|
100
|
%
|
|
LG Display Poland Sp. zo.o.
|
|
Manufacturing
|
|
Poland
|
|
|
100
|
%
|
|
LG Display Guangzhou Co., Ltd.
|
|
Manufacturing
|
|
China
|
|
|
100
|
%
|
|
LG Display Shenzhen Co., Ltd.
|
|
Sales
|
|
China
|
|
|
100
|
%
|
|
LG Display Singapore Pte. Ltd.
|
|
Sales
|
|
Singapore
|
|
|
100
|
%
|
|
L&T Display Technology (Fujian) Limited
|
|
Manufacturing and sales
|
|
China
|
|
|
51
|
%
|
|
LG Display Yantai Co., Ltd.
|
|
Manufacturing
|
|
China
|
|
|
100
|
%
|
|
Nanumnuri Co., Ltd.
|
|
Workplace services
|
|
Korea
|
|
|
100
|
%
|
|
LG Display (China) Co., Ltd.
|
|
Manufacturing and sales
|
|
China
|
|
|
70
|
%
|
|
Unified Innovative Technology, LLC
|
|
Managing intellectual property
|
|
U.S.A.
|
|
|
100
|
%
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
Sales
|
|
China
|
|
|
100
|
%
|
|
Global OLED Technology LLC
|
|
Managing intellectual property
|
|
U.S.A.
|
|
|
100
|
%
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
Manufacturing
|
|
Vietnam
|
|
|
100
|
%
|
|
Suzhou Lehui Display Co., Ltd.
|
|
Manufacturing and sales
|
|
China
|
|
|
100
|
%
|
|
MMT (Money Market Trust)
|
|
Money market trust
|
|
Korea
|
|
|
100
|
%
|
21
|
|
D.
|
Status of equity investments (as of September 30, 2017)
|
|
|
(1)
|
Consolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
Investment Amount
(in millions)
|
|
|
Initial Equity
Investment Date
|
|
|
Equity
Interest
|
|
|
LG Display America, Inc.
|
|
|
US$411
|
|
|
|
September 24, 1999
|
|
|
|
100
|
%
|
|
LG Display Japan Co., Ltd.
|
|
|
¥95
|
|
|
|
October 12, 1999
|
|
|
|
100
|
%
|
|
LG Display Germany GmbH
|
|
|
EUR1
|
|
|
|
November 5, 1999
|
|
|
|
100
|
%
|
|
LG Display Taiwan Co., Ltd.
|
|
|
NT$116
|
|
|
|
May 19, 2000
|
|
|
|
100
|
%
|
|
LG Display Nanjing Co., Ltd.
|
|
|
CNY3,020
|
|
|
|
July 15, 2002
|
|
|
|
100
|
%
|
|
LG Display Shanghai Co., Ltd.
|
|
|
CNY4
|
|
|
|
January 16, 2003
|
|
|
|
100
|
%
|
|
LG Display Poland Sp. zo.o.
|
|
|
PLN511
|
|
|
|
September 6, 2005
|
|
|
|
100
|
%
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
CNY1,655
|
|
|
|
August 7, 2006
|
|
|
|
100
|
%
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
CNY4
|
|
|
|
August 28, 2007
|
|
|
|
100
|
%
|
|
LG Display Singapore Pte. Ltd.
|
|
|
US$1.1
|
|
|
|
January 12, 2009
|
|
|
|
100
|
%
|
|
L&T Display Technology (Fujian) Limited
|
|
|
CNY116
|
|
|
|
January 5, 2010
|
|
|
|
51
|
%
|
|
LG Display Yantai Co., Ltd.
|
|
|
CNY1,008
|
|
|
|
April 19, 2010
|
|
|
|
100
|
%
|
|
Nanumnuri Co., Ltd.
|
|
|
W
800
|
|
|
|
March 19, 2012
|
|
|
|
100
|
%
|
|
LG Display (China) Co., Ltd.
(1)
|
|
|
CNY8,232
|
|
|
|
December 27, 2012
|
|
|
|
70
|
%
|
|
Unified Innovative Technology, LLC
|
|
|
US$9
|
|
|
|
March 21, 2014
|
|
|
|
100
|
%
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
CNY1.2
|
|
|
|
May 27, 2015
|
|
|
|
100
|
%
|
|
Global OLED Technology LLC
|
|
|
US$138
|
|
|
|
May 7, 2015
|
|
|
|
100
|
%
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
US$100
|
|
|
|
May 13, 2016
|
|
|
|
100
|
%
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
CNY637
|
|
|
|
July 1, 2016
|
|
|
|
100
|
%
|
|
MMT (Money Market Trust)
(2)
|
|
|
W
157,335
|
|
|
|
March 31, 2017
|
|
|
|
100
|
%
|
|
(1)
|
In June 2017, LG Display Guangzhou Co., Ltd., our consolidated subsidiary, invested an additional
W
8,557 million in LG Display (China) Co., Ltd.
|
|
(2)
|
We conducted money market trust acquisitions in the amount of
W
157,335 million during the nine months ended September 30, 2017.
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
(1)
|
|
Carrying Amount
(in millions)
|
|
|
Date of
Incorporation
|
|
|
Equity
Interest
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
W
48,236
|
|
|
|
January 2005
|
|
|
|
40
|
%
|
|
Invenia Co., Ltd.
|
|
|
W
3,161
|
|
|
|
January 2001
|
|
|
|
13
|
%
|
|
Wooree E&L Co., Ltd.
|
|
|
W
7,407
|
|
|
|
June 2008
|
|
|
|
14
|
%
|
|
LB Gemini New Growth Fund No. 16
(2)
|
|
|
W
5,761
|
|
|
|
December 2009
|
|
|
|
31
|
%
|
|
Can Yang Investments Limited
(3)
|
|
|
W
2,063
|
|
|
|
January 2010
|
|
|
|
9
|
%
|
|
YAS Co., Ltd.
|
|
|
W
10,665
|
|
|
|
April 2002
|
|
|
|
15
|
%
|
|
Avatec Co., Ltd.
|
|
|
W
22,123
|
|
|
|
August 2000
|
|
|
|
17
|
%
|
|
Arctic Sentinel, Inc.
|
|
|
—
|
|
|
|
June 2008
|
|
|
|
10
|
%
|
|
CYNORA GmbH
(4)
|
|
|
W
20,308
|
|
|
|
March 2003
|
|
|
|
14
|
%
|
|
(1)
|
During the nine months ended September 30, 2017, we divested our entire equity interest in New Optics Ltd. and Narae Nanotech Corporation.
|
|
(2)
|
We participate as a limited member in LB Gemini New Growth Fund No. 16. During the reporting period, we received a distribution of
W
2,076 million as return of principal from our investments. The
distribution did not affect our percentage interest.
|
|
(3)
|
During the reporting period, we recognized an impairment loss of
W
4,234 million, the difference between the carrying amount and the recoverable amount of our equity interest in Can Yang Investments
Limited, which loss was categorized as finance costs.
|
|
(4)
|
In September 2017, we acquired 88,584 preferred shares with voting rights of CYNORA GmbH for
W
20,308 million. As of September 30, 2017, our percentage ownership interest in CYNORA GmbH is 14%, and
we are entitled to appoint one director of CYNORA GmbH.
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: In millions of Won, hours)
|
|
Description
|
|
2017 Q1~Q3
|
|
2016
|
|
2015
|
|
Auditor
|
|
KPMG Samjong
|
|
KPMG Samjong
|
|
KPMG Samjong
|
|
Activity
|
|
Audit by independent
auditor
|
|
Audit by independent
auditor
|
|
Audit by independent
auditor
|
|
Compensation
(1)
|
|
1,040 (450)
(2)
|
|
1,020 (440)
(2)
|
|
990 (400)
(2)
|
|
Time required
|
|
11,521
|
|
18,291
|
|
17,530
|
|
(1)
|
Compensation amount is the contracted amount for the full fiscal year.
|
|
(2)
|
Compensation amount in ( ) is for Form
20-F
filing and SOX 404 audit.
|
None.
|
|
A.
|
Members of the board of directors
|
As of September 30, 2017 our board of directors
consisted of two
non-outside
directors, one
non-standing
director and four outside directors.
23
|
|
|
|
|
|
|
|
|
|
|
(As of September 30, 2017)
|
|
Name
|
|
Position
|
|
Primary responsibility
|
|
Sang Beom Han
|
|
Representative Director
(non-outside),
Chief Executive Officer and Vice Chairman
|
|
Chairman of the board of
directors
|
|
Sang Don Kim
(1)
|
|
Director
(non-outside),
Chief Financial Officer and Senior Vice President
|
|
Overall head of finances
|
|
Hyun Hwoi Ha
(2)
|
|
Director (non-standing)
|
|
Related to the overall
management
|
|
Jin Jang
(3)
|
|
Outside Director
|
|
Related to the overall
management
|
|
Joon Park
(4)
|
|
Outside Director
|
|
Related to the overall
management
|
|
Sung Sik Hwang
(5)
|
|
Outside Director
|
|
Related to the overall
management
|
|
Kun Tai Han
(6)
|
|
Outside Director
|
|
Related to the overall
management
|
|
(1)
|
Sang Don Kim was reappointed for another term as a non-outside director at the annual general meeting of shareholders held on March 23, 2017.
|
|
(2)
|
Hyun Hwoi Ha was appointed as a non-standing director at the annual general meeting of shareholders held on March 23, 2017. Mr. Ha is also the chief executive officer of LG Corp., a non-standing director of LG
Hausys, Ltd., a non-standing director of LG International Corp., a non-standing director of LG Uplus Corp., a non-standing director of LG Economic Research Institute and a non-standing director of LG CNS Co., Ltd.
|
|
(3)
|
Jin Jang was reappointed for another term as an outside director at the annual general meeting of shareholders held on March 23, 2017. Mr. Jang is also the chief executive officer of Silicon Display Co., Ltd.
|
|
(4)
|
Joon Park is also an outside director of Green Cross Holdings Corp.
|
|
(5)
|
Sung Sik Hwang is also an outside director of Kyobo Life Insurance Co., Ltd.
|
|
(6)
|
Kun Tai Han is also the chief executive officer of Hans Consulting.
|
|
|
B.
|
Committees of the board of directors
|
We have the following
committees that serve under our board of directors: Audit Committee, Outside Director Nomination Committee and Management Committee. The Management Committee consists of two non-outside directors, Sang Boem Han and Sang Don Kim.
During the reporting period, two meetings of the Outside Director Nomination Committee were held and the composition of the Outside Director
Nomination Committee was as follows.
|
|
|
|
|
|
|
|
|
(As of March 8, 2017)
|
|
Committee
|
|
Composition
|
|
Member
|
|
Outside Director Nomination Committee
|
|
1
non-standing
director and 2 outside directors
|
|
Yu Sig Kang, Joon Park
(1)
, Sung Sik Hwang
|
|
(1)
|
Joon Park was appointed as a member of the outside director nomination committee of the board of directors by the board of directors on January 23, 2017.
|
As of September 30, 2017, the composition of the Audit Committee was as follows.
|
|
|
|
|
|
|
|
|
|
|
(As of September 30, 2017)
|
|
Committee
|
|
Composition
|
|
Member
|
|
Audit Committee
|
|
3 outside directors
|
|
Sung Sik Hwang
(1)
, Joon Park, Kun Tai Han
(2)
|
|
(1)
|
Sung Sik Hwang is the audit committee chairman.
|
|
(2)
|
Kun Tai Han was appointed as a member of the audit committee of the board of directors at the annual general meeting of shareholders held on March 23, 2017.
|
24
|
|
C.
|
Independence of directors
|
Directors are appointed in accordance with the procedures of the
Commercial Act and other relevant laws and regulations. Our board of directors is independent as four out of the seven directors that comprise the board are outside directors. Outside directors candidates are nominated for appointment at a
shareholders’ meeting after undergoing rigorous review by the Outside Director Nomination Committee.
All of our current outside
directors were nominated by the Outside Director Nomination Committee, and all of our current non-outside directors were nominated by the board of directors.
|
15.
|
Information Regarding Shares
|
|
|
A.
|
Total number of shares
|
|
|
(1)
|
Total number of shares authorized to be issued (as of September 30, 2017): 500,000,000 shares.
|
|
|
(2)
|
Total shares issued and outstanding (as of September 30, 2017): 357,815,700 shares.
|
|
|
(1)
|
Largest shareholder and related parties as of September 30, 2017:
|
|
|
|
|
|
|
|
|
|
Name
|
|
Relationship
|
|
Number of shares
of common stock
|
|
Equity interest
|
|
LG Electronics
|
|
Largest
Shareholder
|
|
135,625,000
|
|
37.90%
|
|
Sang Beom Han
|
|
Related
Party
|
|
31,355
|
|
0.01%
|
|
Sang Don Kim
|
|
Related
Party
|
|
4,000
|
|
0.00%
|
|
|
(2)
|
Shareholders who are known to us to own 5% or more of our shares as of September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial owner
|
|
Number of shares
of common stock
|
|
|
Equity
interest
|
|
|
LG Electronics
|
|
|
135,625,000
|
|
|
|
37.90
|
%
|
|
National Pension Service
|
|
|
32,930,270
|
|
|
|
9.20
|
%
|
|
16.
|
Directors and Employees
|
|
|
(1)
|
Remuneration for directors in 2017 Q1~Q3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: person, in millions of Won)
|
|
|
Classification
|
|
No. of directors
(1)
|
|
|
Amount paid
(2)
|
|
|
Per capita average
remuneration paid
(3)
|
|
|
Non-outside
directors
|
|
|
3
|
|
|
|
2,442
|
|
|
|
814
|
|
|
Outside directors who are not audit committee members
|
|
|
1
|
|
|
|
59
|
|
|
|
59
|
|
|
Outside directors who are audit committee members
|
|
|
3
|
|
|
|
176
|
|
|
|
59
|
|
|
Total
|
|
|
7
|
|
|
|
2,677
|
|
|
|
932
|
|
|
(1)
|
Number of directors as of September 30, 2017.
|
|
(2)
|
Amount paid is calculated on the basis of amount of cash actually paid.
|
|
(3)
|
Per capita average remuneration paid is calculated by dividing total amount paid by the average number of directors for the nine months ended September 30, 2017.
|
|
|
(2)
|
Remuneration for individual directors and audit committee members
|
Not required for quarterly
reports.
Not applicable.
25
As of September 30, 2017, we had 33,127 employees (excluding our executive
officers). On average, our male employees have served 9.0 years and our female employees have served 7.5 years. The total amount of salary paid to our employees for the nine months ended September 30, 2017 based on income tax statements
submitted to the Korean tax authority in accordance with Article 20 of the Income Tax Act was W1,428,185 million for our male employees and W340,688 million for our female employees. The following table provides details of our employees as of
September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unit: person, in millions of Won, year)
|
|
|
|
|
Number of
employees
(1)
|
|
|
Total salary in
2017 Q1~Q3
(2)(3)(4)
|
|
|
Total salary
per capita
(5)
|
|
|
Average years
of service
|
|
|
Male
|
|
|
24,899
|
|
|
|
1,428,185
|
|
|
|
58
|
|
|
|
9.0
|
|
|
Female
|
|
|
8,228
|
|
|
|
340,688
|
|
|
|
41
|
|
|
|
7.5
|
|
|
Total
|
|
|
33,127
|
|
|
|
1,768,873
|
|
|
|
54
|
|
|
|
8.7
|
|
|
(1)
|
Excludes temporary employees hired for temporarily required tasks or as temporary replacements for employees on maternity/child-rearing leaves.
|
|
(2)
|
Welfare benefits and retirement expenses have been excluded. Total welfare benefit provided to our employees for the nine months ended September 30, 2017 was
W
271,071 million and the per capita
welfare benefit provided was
W
8.3 million.
|
|
(3)
|
Based on income tax statements (amounts are based on pre-income tax figures), which are submitted to the Korean tax authority in accordance with Article 20 of the Income Tax Act.
|
|
(4)
|
Includes incentive payments to employees who have transferred from our affiliated companies.
|
|
(5)
|
Calculated using the average number of employees (male: 24,517, female: 8,277) for the nine months ended September 30, 2017.
|
|
17.
|
Material Events Subsequent to the Reporting Period
|
On October 27, 2017, we issued
corporate bonds in an aggregate amount of Won 200 billion. The following table provides details of such issuance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Securities
|
|
Type of
Offering
|
|
|
Issue
Date
|
|
|
Issue Amount
|
|
|
Interest
Rate
|
|
|
Credit Rating
|
|
|
Date of Maturity
|
|
|
Underwriters
|
|
Corporate Bonds
|
|
|
Public
|
|
|
|
October 27, 2017
|
|
|
|
Won 150,000,000,000
|
|
|
|
2.564%
|
|
|
|
AA (Korea
Investors
Service;
Korea
Ratings
Corporation)
|
|
|
|
October 27, 2020
|
|
|
KB Securities; Korea Investment & Securities; CAPE Investment & Securities; NH Investment & Securities; Mirae Asset Daewoo
|
|
|
|
|
|
|
|
|
October 27, 2017
|
|
|
|
Won 50,000,000,000
|
|
|
|
2.911
|
%
|
|
|
|
|
|
|
October 27, 2022
|
|
|
|
26
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
(Unaudited)
September 30, 2017 and 2016
(With Independent Auditors’ Review Report Thereon)
27
Table of Contents
28
Independent Auditors’ Review Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
LG Display Co.,
Ltd.:
Reviewed Financial Statements
We have
reviewed the accompanying condensed consolidated interim financial statements of LG Display Co., Ltd. and subsidiaries (the “Group”) which comprise the condensed consolidated interim statement of financial position as of September 30,
2017, the condensed consolidated interim statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2017 and 2016, the statements of changes in equity and cash flows for the nine-month periods ended
September 30, 2017 and 2016, and notes comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Condensed Consolidated Interim Financial Statements
Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean
International Financial Reporting Standards No. 1034,
Interim Financial Reporting,
and for such internal controls as management determines necessary to enable the preparation of condensed consolidated interim financial statements that
are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Security and Futures
Commission of the Republic of Korea. A review of interim financial information consists principally of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements referred
to above are not presented fairly, in all material respects, in accordance with Korean International Financial Reporting Standards No. 1034,
Interim Financial Reporting.
Other Matters
The procedures and practices
utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those generally accepted and applied in other countries.
We audited the consolidated statement of financial position as of December 31, 2016 and the related consolidated statements of comprehensive income,
changes in equity and cash flows for the year then ended, which are not accompanying this review report, in accordance with Korean Standards on Auditing, and our report thereon, dated February 21, 2017, expressed an unqualified opinion. The
accompanying condensed consolidated statement of financial position of the Group as of December 31, 2016, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.
29
KPMG Samjong Accounting Corp.
Seoul, Korea
November 10, 2017
This report is effective as of November 10, 2017 the review report date. Certain subsequent events or
circumstances
,
which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the
readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
30
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
As of September 30, 2017 and December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
4, 25
|
|
|
W
|
1,974,036
|
|
|
|
1,558,696
|
|
|
Deposits in banks
|
|
|
4, 25
|
|
|
|
1,328,010
|
|
|
|
1,163,750
|
|
|
Trade accounts and notes receivable, net
|
|
|
5, 14, 25, 27
|
|
|
|
4,847,867
|
|
|
|
4,957,993
|
|
|
Other accounts receivable, net
|
|
|
5, 25
|
|
|
|
87,416
|
|
|
|
143,592
|
|
|
Other current financial assets
|
|
|
6, 25
|
|
|
|
23,790
|
|
|
|
28,016
|
|
|
Inventories
|
|
|
7
|
|
|
|
2,664,032
|
|
|
|
2,287,785
|
|
|
Prepaid income taxes
|
|
|
|
|
|
|
371
|
|
|
|
592
|
|
|
Other current assets
|
|
|
5
|
|
|
|
408,540
|
|
|
|
343,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
|
11,334,062
|
|
|
|
10,484,186
|
|
|
Deposits in banks
|
|
|
4, 25
|
|
|
|
11
|
|
|
|
13
|
|
|
Investments in equity accounted investees
|
|
|
8
|
|
|
|
119,724
|
|
|
|
172,683
|
|
|
Other non-current financial assets
|
|
|
6, 25
|
|
|
|
63,522
|
|
|
|
74,633
|
|
|
Property, plant and equipment, net
|
|
|
9, 17
|
|
|
|
15,004,141
|
|
|
|
12,031,449
|
|
|
Intangible assets, net
|
|
|
10, 17
|
|
|
|
888,592
|
|
|
|
894,937
|
|
|
Deferred tax assets
|
|
|
23
|
|
|
|
972,821
|
|
|
|
867,011
|
|
|
Other non-current assets
|
|
|
5
|
|
|
|
408,856
|
|
|
|
359,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
|
|
|
17,457,667
|
|
|
|
14,400,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
W
|
28,791,729
|
|
|
|
24,884,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable
|
|
|
25, 27
|
|
|
W
|
2,962,856
|
|
|
|
2,877,326
|
|
|
Current financial liabilities
|
|
|
11, 25
|
|
|
|
1,218,849
|
|
|
|
667,909
|
|
|
Other accounts payable
|
|
|
25
|
|
|
|
2,621,112
|
|
|
|
2,449,517
|
|
|
Accrued expenses
|
|
|
|
|
|
|
652,139
|
|
|
|
639,629
|
|
|
Income tax payable
|
|
|
|
|
|
|
371,785
|
|
|
|
257,082
|
|
|
Provisions
|
|
|
13
|
|
|
|
73,814
|
|
|
|
55,972
|
|
|
Advances received
|
|
|
|
|
|
|
134,188
|
|
|
|
61,818
|
|
|
Other current liabilities
|
|
|
13
|
|
|
|
44,396
|
|
|
|
48,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
8,079,139
|
|
|
|
7,058,219
|
|
|
Non-current financial liabilities
|
|
|
11, 25
|
|
|
|
4,165,532
|
|
|
|
4,111,333
|
|
|
Non-current provisions
|
|
|
13
|
|
|
|
24,043
|
|
|
|
8,155
|
|
|
Defined benefit liabilities, net
|
|
|
12
|
|
|
|
297,306
|
|
|
|
142,987
|
|
|
Long-term advances received
|
|
|
14
|
|
|
|
960,361
|
|
|
|
—
|
|
|
Deferred tax liabilities
|
|
|
23
|
|
|
|
27,324
|
|
|
|
32,108
|
|
|
Other non-current liabilities
|
|
|
13
|
|
|
|
69,912
|
|
|
|
69,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
|
|
|
|
5,544,478
|
|
|
|
4,363,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
13,623,617
|
|
|
|
11,421,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
15
|
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
Share premium
|
|
|
|
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
Retained earnings
|
|
|
|
|
|
|
10,582,527
|
|
|
|
9,004,283
|
|
|
Reserves
|
|
|
15
|
|
|
|
(88,404
|
)
|
|
|
(88,478
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to owners of the Controlling Company
|
|
|
|
|
|
|
14,534,315
|
|
|
|
12,955,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
633,797
|
|
|
|
506,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
|
15,168,112
|
|
|
|
13,462,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
|
|
W
|
28,791,729
|
|
|
|
24,884,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
31
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(Unaudited)
For the three-month and nine-month periods ended
September 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except earnings per share)
|
|
Note
|
|
For the three-month period
ended September 30
|
|
|
For the nine-month period
ended September 30
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Revenue
|
|
16, 17, 27
|
|
W
|
6,973,095
|
|
|
|
6,723,775
|
|
|
W
|
20,664,143
|
|
|
|
18,568,118
|
|
|
Cost of sales
|
|
7, 18, 27
|
|
|
(5,717,586
|
)
|
|
|
(5,784,216
|
)
|
|
|
(16,175,486
|
)
|
|
|
(16,391,890
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
1,255,509
|
|
|
|
939,559
|
|
|
|
4,488,657
|
|
|
|
2,176,228
|
|
|
Selling expenses
|
|
19
|
|
|
(212,817
|
)
|
|
|
(165,580
|
)
|
|
|
(678,546
|
)
|
|
|
(491,349
|
)
|
|
Administrative expenses
|
|
19
|
|
|
(170,625
|
)
|
|
|
(152,396
|
)
|
|
|
(511,032
|
)
|
|
|
(451,529
|
)
|
|
Research and development expenses
|
|
|
|
|
(286,074
|
)
|
|
|
(298,420
|
)
|
|
|
(881,937
|
)
|
|
|
(826,275
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
585,993
|
|
|
|
323,163
|
|
|
|
2,417,142
|
|
|
|
407,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
22
|
|
|
35,752
|
|
|
|
92,766
|
|
|
|
164,176
|
|
|
|
165,474
|
|
|
Finance costs
|
|
22
|
|
|
(45,954
|
)
|
|
|
(60,494
|
)
|
|
|
(192,961
|
)
|
|
|
(192,080
|
)
|
|
Other non-operating income
|
|
21
|
|
|
226,800
|
|
|
|
231,530
|
|
|
|
767,282
|
|
|
|
860,948
|
|
|
Other non-operating expenses
|
|
21
|
|
|
(205,871
|
)
|
|
|
(335,345
|
)
|
|
|
(873,892
|
)
|
|
|
(995,176
|
)
|
|
Equity in gain (loss) of equity accounted investees, net
|
|
|
|
|
2,003
|
|
|
|
(3,169
|
)
|
|
|
6,915
|
|
|
|
5,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
598,723
|
|
|
|
248,451
|
|
|
|
2,288,662
|
|
|
|
251,718
|
|
|
Income tax expense
|
|
23
|
|
|
(121,479
|
)
|
|
|
(58,897
|
)
|
|
|
(395,253
|
)
|
|
|
(144,893
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
477,244
|
|
|
|
189,554
|
|
|
|
1,893,409
|
|
|
|
106,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities
|
|
12
|
|
|
(3,639
|
)
|
|
|
(1,033
|
)
|
|
|
(11,963
|
)
|
|
|
(3,817
|
)
|
|
Other comprehensive income (loss) from asssociates and joint ventures
|
|
|
|
|
(45
|
)
|
|
|
(7
|
)
|
|
|
448
|
|
|
|
203
|
|
|
Related income tax
|
|
12
|
|
|
881
|
|
|
|
250
|
|
|
|
2,895
|
|
|
|
924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,803
|
)
|
|
|
(790
|
)
|
|
|
(8,620
|
)
|
|
|
(2,690
|
)
|
|
Items that are or may be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
22
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(77
|
)
|
|
Foreign currency translation differences for foreign operations
|
|
|
|
|
109,892
|
|
|
|
(237,609
|
)
|
|
|
(895
|
)
|
|
|
(315,442
|
)
|
|
Other comprehensive income (loss) from asssociates and joint ventures
|
|
|
|
|
204
|
|
|
|
4,009
|
|
|
|
2,367
|
|
|
|
(2,362
|
)
|
|
Related income tax
|
|
22
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,096
|
|
|
|
(233,600
|
)
|
|
|
1,472
|
|
|
|
(317,862
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of income tax
|
|
|
|
|
107,293
|
|
|
|
(234,390
|
)
|
|
|
(7,148
|
)
|
|
|
(320,552
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
|
|
W
|
584,537
|
|
|
|
(44,836
|
)
|
|
W
|
1,886,261
|
|
|
|
(213,727
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Controlling Company
|
|
|
|
W
|
441,982
|
|
|
|
177,825
|
|
|
|
1,765,772
|
|
|
|
108,676
|
|
|
Non-controlling interests
|
|
|
|
|
35,262
|
|
|
|
11,729
|
|
|
|
127,637
|
|
|
|
(1,851
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
W
|
477,244
|
|
|
|
189,554
|
|
|
W
|
1,893,409
|
|
|
|
106,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Controlling Company
|
|
|
|
W
|
532,860
|
|
|
|
(27,145
|
)
|
|
|
1,757,226
|
|
|
|
(172,160
|
)
|
|
Non-controlling interests
|
|
|
|
|
51,677
|
|
|
|
(17,691
|
)
|
|
|
129,035
|
|
|
|
(41,567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
|
|
W
|
584,537
|
|
|
|
(44,836
|
)
|
|
W
|
1,886,261
|
|
|
|
(213,727
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (In won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
24
|
|
W
|
1,235
|
|
|
|
497
|
|
|
W
|
4,935
|
|
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
24
|
|
W
|
1,235
|
|
|
|
497
|
|
|
W
|
4,935
|
|
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
32
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited)
For the nine-month periods ended September 30,
2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Controlling Company
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Share
capital
|
|
|
Share
premium
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Sub-total
|
|
|
Non-controlling
interests
|
|
|
Total equity
|
|
|
Balances at January 1, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
8,158,526
|
|
|
|
(5,766
|
)
|
|
|
12,192,952
|
|
|
|
512,004
|
|
|
|
12,704,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit(loss) for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
108,676
|
|
|
|
—
|
|
|
|
108,676
|
|
|
|
(1,851
|
)
|
|
|
106,825
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of available-for-sale financial assets, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58
|
)
|
|
|
(58
|
)
|
|
|
—
|
|
|
|
(58
|
)
|
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
Foreign currency translation differences for foreign operations, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(275,726
|
)
|
|
|
(275,726
|
)
|
|
|
(39,716
|
)
|
|
|
(315,442
|
)
|
|
Other comprehensive income (loss) from asssociates and joint ventures
|
|
|
—
|
|
|
|
—
|
|
|
|
203
|
|
|
|
(2,362
|
)
|
|
|
(2,159
|
)
|
|
|
—
|
|
|
|
(2,159
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,690
|
)
|
|
|
(278,146
|
)
|
|
|
(280,836
|
)
|
|
|
(39,716
|
)
|
|
|
(320,552
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
W
|
—
|
|
|
|
—
|
|
|
|
105,986
|
|
|
|
(278,146
|
)
|
|
|
(172,160
|
)
|
|
|
(41,567
|
)
|
|
|
(213,727
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
—
|
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
Subsidiaries’ dividends distributed to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,658
|
)
|
|
|
(10,658
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at September 30, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
8,085,604
|
|
|
|
(283,912
|
)
|
|
|
11,841,884
|
|
|
|
459,779
|
|
|
|
12,301,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at January 1, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
9,004,283
|
|
|
|
(88,478
|
)
|
|
|
12,955,997
|
|
|
|
506,391
|
|
|
|
13,462,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
1,765,772
|
|
|
|
—
|
|
|
|
1,765,772
|
|
|
|
127,637
|
|
|
|
1,893,409
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
Foreign currency translation differences for foreign operations, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,293
|
)
|
|
|
(2,293
|
)
|
|
|
1,398
|
|
|
|
(895
|
)
|
|
Other comprehensive income from asssociates and joint ventures
|
|
|
—
|
|
|
|
—
|
|
|
|
448
|
|
|
|
2,367
|
|
|
|
2,815
|
|
|
|
—
|
|
|
|
2,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,620
|
)
|
|
|
74
|
|
|
|
(8,546
|
)
|
|
|
1,398
|
|
|
|
(7,148
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
W
|
—
|
|
|
|
—
|
|
|
|
1,757,152
|
|
|
|
74
|
|
|
|
1,757,226
|
|
|
|
129,035
|
|
|
|
1,886,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
—
|
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
Subsidiaries’ dividends distributed to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,929
|
)
|
|
|
(5,929
|
)
|
|
Capital contribution from non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,300
|
|
|
|
4,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at September 30, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
10,582,527
|
|
|
|
(88,404
|
)
|
|
|
14,534,315
|
|
|
|
633,797
|
|
|
|
15,168,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
33
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)
For the nine-month periods ended September 30,
2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
2017
|
|
|
2016
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
W
|
1,893,409
|
|
|
|
106,825
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
23
|
|
|
395,253
|
|
|
|
144,893
|
|
|
Depreciation
|
|
18
|
|
|
2,013,067
|
|
|
|
2,035,720
|
|
|
Amortization of intangible assets
|
|
18
|
|
|
316,036
|
|
|
|
265,905
|
|
|
Gain on foreign currency translation
|
|
|
|
|
(128,321
|
)
|
|
|
(67,054
|
)
|
|
Loss on foreign currency translation
|
|
|
|
|
85,638
|
|
|
|
97,423
|
|
|
Expenses related to defined benefit plans
|
|
12
|
|
|
148,679
|
|
|
|
165,833
|
|
|
Gain on disposal of property, plant and equipment
|
|
|
|
|
(14,259
|
)
|
|
|
(7,662
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
9,340
|
|
|
|
3,122
|
|
|
Gain on disposal of intangible assets
|
|
|
|
|
(308
|
)
|
|
|
—
|
|
|
Loss on disposal of intangible assets
|
|
|
|
|
9
|
|
|
|
20
|
|
|
Impairment loss on intangible assets
|
|
|
|
|
1,717
|
|
|
|
125
|
|
|
Finance income
|
|
|
|
|
(103,672
|
)
|
|
|
(124,025
|
)
|
|
Finance costs
|
|
|
|
|
118,544
|
|
|
|
128,488
|
|
|
Equity in gain of equity method accounted investees, net
|
|
8
|
|
|
(6,915
|
)
|
|
|
(5,477
|
)
|
|
Other income
|
|
|
|
|
(16,505
|
)
|
|
|
(15,546
|
)
|
|
Other expenses
|
|
|
|
|
165,368
|
|
|
|
133,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,983,671
|
|
|
|
2,755,426
|
|
|
Changes in
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
|
|
|
|
|
223,256
|
|
|
|
(9,725
|
)
|
|
Other accounts receivable
|
|
|
|
|
35,132
|
|
|
|
46,085
|
|
|
Other current assets
|
|
|
|
|
9,105
|
|
|
|
(110,854
|
)
|
|
Inventories
|
|
|
|
|
(370,064
|
)
|
|
|
(98,484
|
)
|
|
Other non-current assets
|
|
|
|
|
(115,894
|
)
|
|
|
(97,887
|
)
|
|
Trade accounts and notes payable
|
|
|
|
|
45,297
|
|
|
|
256,237
|
|
|
Other accounts payable
|
|
|
|
|
(66,742
|
)
|
|
|
(40,616
|
)
|
|
Accrued expenses
|
|
|
|
|
20,974
|
|
|
|
(78,084
|
)
|
|
Other current liabilities
|
|
|
|
|
(4,228
|
)
|
|
|
4,557
|
|
|
Long-term advance received
|
|
|
|
|
1,020,470
|
|
|
|
—
|
|
|
Other non-current liabilities
|
|
|
|
|
5,178
|
|
|
|
14,004
|
|
|
Provisions
|
|
|
|
|
(130,380
|
)
|
|
|
(107,083
|
)
|
|
Defined benefit liabilities, net
|
|
|
|
|
(6,311
|
)
|
|
|
(119,841
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
665,793
|
|
|
|
(341,691
|
)
|
|
Cash generated from operating activities
|
|
|
|
|
5,542,873
|
|
|
|
2,520,560
|
|
|
Income taxes paid
|
|
|
|
|
(358,096
|
)
|
|
|
(169,412
|
)
|
|
Interests received
|
|
|
|
|
36,855
|
|
|
|
36,290
|
|
|
Interests paid
|
|
|
|
|
(99,246
|
)
|
|
|
(95,367
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
W
|
5,122,386
|
|
|
|
2,292,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
34
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Statements of Cash Flows, Continued
(Unaudited)
For the nine-month periods ended September 30,
2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2017
|
|
|
2016
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends received
|
|
|
|
|
|
W
|
8,639
|
|
|
|
59,023
|
|
|
Proceeds from withdrawal of deposits in banks
|
|
|
|
|
|
|
1,358,632
|
|
|
|
2,247,561
|
|
|
Increase in deposits in banks
|
|
|
|
|
|
|
(1,522,890
|
)
|
|
|
(1,880,547
|
)
|
|
Acquisition of available-for-sale financial assets
|
|
|
|
|
|
|
(195
|
)
|
|
|
(747
|
)
|
|
Proceeds from disposal of available-for-sale financial assets
|
|
|
|
|
|
|
—
|
|
|
|
419
|
|
|
Acquisition of financial assets at fair value through profit or loss
|
|
|
|
|
|
|
—
|
|
|
|
(1,500
|
)
|
|
Acquisition of investments in equity accounted investees
|
|
|
|
|
|
|
(20,308
|
)
|
|
|
—
|
|
|
Proceeds from investments in equity accounted investees
|
|
|
|
|
|
|
6,697
|
|
|
|
21,907
|
|
|
Acquisition of property, plant and equipment
|
|
|
|
|
|
|
(4,798,574
|
)
|
|
|
(2,558,563
|
)
|
|
Proceeds from disposal of property, plant and equipment
|
|
|
|
|
|
|
114,624
|
|
|
|
32,885
|
|
|
Acquisition of intangible assets
|
|
|
|
|
|
|
(335,803
|
)
|
|
|
(318,087
|
)
|
|
Proceeds from disposal of intangible assets
|
|
|
|
|
|
|
874
|
|
|
|
151
|
|
|
Government grants received
|
|
|
|
|
|
|
1,505
|
|
|
|
2,699
|
|
|
Receipt from (payment for) settlement of derivatives
|
|
|
|
|
|
|
2,745
|
|
|
|
(36
|
)
|
|
Proceeds from collection of short-term loans
|
|
|
|
|
|
|
693
|
|
|
|
4,650
|
|
|
Increase in short-term loans
|
|
|
|
|
|
|
—
|
|
|
|
(2,132
|
)
|
|
Increase in long-term loans
|
|
|
|
|
|
|
(300
|
)
|
|
|
(23,817
|
)
|
|
Decrease in deposits
|
|
|
|
|
|
|
3,639
|
|
|
|
472
|
|
|
Increase in deposits
|
|
|
|
|
|
|
(2,534
|
)
|
|
|
(6,899
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(5,182,556
|
)
|
|
|
(2,422,561
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
|
|
|
—
|
|
|
|
107,345
|
|
|
Repayments of short-term borrowings
|
|
|
|
|
|
|
(113,209
|
)
|
|
|
—
|
|
|
Proceeds from issuance of debentures
|
|
|
|
|
|
|
298,780
|
|
|
|
298,784
|
|
|
Proceeds from long-term debt
|
|
|
|
|
|
|
847,702
|
|
|
|
1,483,343
|
|
|
Repayments of long-term debt
|
|
|
|
|
|
|
—
|
|
|
|
(347,693
|
)
|
|
Repayments of current portion of long-term debt and debentures
|
|
|
|
|
|
|
(364,774
|
)
|
|
|
(832,939
|
)
|
|
Subsidiaries’ dividends distributed to non-controlling interests
|
|
|
|
|
|
|
(5,929
|
)
|
|
|
(10,658
|
)
|
|
Capital contribution from non-controlling interests
|
|
|
|
|
|
|
4,300
|
|
|
|
—
|
|
|
Dividends paid
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
|
487,962
|
|
|
|
519,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
|
427,792
|
|
|
|
388,784
|
|
|
Cash and cash equivalents at January 1
|
|
|
|
|
|
|
1,558,696
|
|
|
|
751,662
|
|
|
Effect of exchange rate fluctuations on cash held
|
|
|
|
|
|
|
(12,452
|
)
|
|
|
(64,509
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at September 30
|
|
|
|
|
|
W
|
1,974,036
|
|
|
|
1,075,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
35
|
|
(a)
|
Description of the Controlling Company
|
LG Display Co., Ltd. (the “Controlling Company”) was incorporated in
February 1985 and the Controlling Company is a public corporation listed in Korea Exchange since 2004. The main business of the Controlling Company and its subsidiaries (the “Group”) is to manufacture and sell displays and its related
products. As of September 30, 2017, the Group is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and
OLED module manufacturing plants in Gumi, Paju, China, Poland and Vietnam. The Controlling Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of September 30,
2017, LG Electronics Inc., a major shareholder of the Controlling Company, owns 37.9% (135,625,000 shares) of the Controlling Company’s common stock.
The Controlling Company’s common stock is listed on the Korea Exchange under the identifying code 034220. As of September 30, 2017,
there are 357,815,700 shares of common stock outstanding. The Controlling Company’s common stock is also listed on the New York Stock Exchange in the form of American Depository Shares (“ADSs”) under the symbol “LPL”. One
ADS represents one-half of one share of common stock. As of September 30, 2017, there are 29,572,308 ADSs outstanding.
36
|
1.
|
Reporting Entity, Continued
|
|
|
(b)
|
Consolidated Subsidiaries as of September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
Location
|
|
Percentage of
ownership
|
|
Fiscal
year end
|
|
Date of
incorporation
|
|
Business
|
|
Capital stocks
|
|
|
LG Display
America, Inc.
|
|
San Jose,
U.S.A.
|
|
100%
|
|
December 31
|
|
September 24,
1999
|
|
Sell Display products
|
|
|
USD 411
|
|
|
LG Display
Japan Co., Ltd.
|
|
Tokyo,
Japan
|
|
100%
|
|
December 31
|
|
October 12,
1999
|
|
Sell Display products
|
|
|
JPY 95
|
|
|
LG Display
Germany GmbH
|
|
Eschborn,
Germany
|
|
100%
|
|
December 31
|
|
November 5,
1999
|
|
Sell Display products
|
|
|
EUR 1
|
|
|
LG Display
Taiwan Co., Ltd.
|
|
Taipei,
Taiwan
|
|
100%
|
|
December 31
|
|
April 12,
1999
|
|
Sell Display products
|
|
|
NTD 116
|
|
|
LG Display
Nanjing Co., Ltd.
|
|
Nanjing,
China
|
|
100%
|
|
December 31
|
|
July 15,
2002
|
|
Manufacture Display
products
|
|
|
CNY 3,020
|
|
|
LG Display
Shanghai Co., Ltd.
|
|
Shanghai,
China
|
|
100%
|
|
December 31
|
|
January 16,
2003
|
|
Sell Display products
|
|
|
CNY 4
|
|
|
LG Display
Poland Sp. z o.o.
|
|
Wroclaw,
Poland
|
|
100%
|
|
December 31
|
|
September 6,
2005
|
|
Manufacture Display
products
|
|
|
PLN 511
|
|
|
LG Display
Guangzhou Co., Ltd.
|
|
Guangzhou,
China
|
|
100%
|
|
December 31
|
|
June 30,
2006
|
|
Manufacture Display
products
|
|
|
CNY 1,655
|
|
|
LG Display
Shenzhen Co., Ltd.
|
|
Shenzhen,
China
|
|
100%
|
|
December 31
|
|
August 28,
2007
|
|
Sell Display products
|
|
|
CNY 4
|
|
|
LG Display
Singapore Pte. Ltd.
|
|
Singapore
|
|
100%
|
|
December 31
|
|
January 12,
2009
|
|
Sell Display products
|
|
|
USD 1.1
|
|
|
L&T Display Technology
(Fujian) Limited
|
|
Fujian,
China
|
|
51%
|
|
December 31
|
|
January 5,
2010
|
|
Manufacture and sell
LCD module and
LCD monitor sets
|
|
|
CNY 116
|
|
|
LG Display Yantai Co., Ltd.
|
|
Yantai,
China
|
|
100%
|
|
December 31
|
|
April 19,
2010
|
|
Manufacture Display
products
|
|
|
CNY 1,008
|
|
|
Nanumnuri Co., Ltd.
|
|
Gumi,
South Korea
|
|
100%
|
|
December 31
|
|
March 21,
2012
|
|
Janitorial services
|
|
|
KRW 800
|
|
|
LG Display
(China) Co., Ltd.(*1)
|
|
Guangzhou,
China
|
|
70%
|
|
December 31
|
|
December 10,
2012
|
|
Manufacture and sell
Display products
|
|
|
CNY 8,232
|
|
|
Unified Innovative Technology, LLC
|
|
Wilmington,
U.S.A.
|
|
100%
|
|
December 31
|
|
March 12,
2014
|
|
Manage intellectual
property
|
|
|
USD 9
|
|
|
LG Display Guangzhou
Trading Co., Ltd.
|
|
Guangzhou,
China
|
|
100%
|
|
December 31
|
|
April 28,
2015
|
|
Sell Display products
|
|
|
CNY 1.2
|
|
|
Global OLED
Technology, LLC
|
|
Herndon,
U.S.A.
|
|
100%
|
|
December 31
|
|
December 18,
2009
|
|
Manage OLED
intellectual property
|
|
|
USD 138
|
|
|
LG Display Vietnam Haiphong
Co., Ltd.
|
|
Haiphong,
Vietnam
|
|
100%
|
|
December 31
|
|
May 5,
2016
|
|
Manufacture Display
products
|
|
|
USD 100
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
Suzhou,
China
|
|
100%
|
|
December 31
|
|
July 1,
2016
|
|
Manufacture and sell
LCD module and
LCD monitor sets
|
|
|
CNY 637
|
|
|
Money Market Trust(*2)
|
|
Seoul,
South Korea
|
|
100%
|
|
December 31
|
|
—
|
|
Money market trust
|
|
|
KRW 157,335
|
|
|
(*1)
|
In September 2017, LG Display Guangzhou Co., Ltd. (“LGDGZ”) contributed
W
8,557 million in cash for the capital increase of LG Display (China) Co., Ltd. (“LGDCA”).
|
|
(*2)
|
For the nine-month period ended September 30, 2017, the Controlling Company acquired
W
157,335 million in Money Market Trust.
|
37
|
2.
|
Basis of Presenting Financial Statements
|
|
|
(a)
|
Statement of Compliance
|
The condensed consolidated interim financial statements have
been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRSs”) No.1034,
Interim Financial Reporting
. They do not include all of the information required for full annual consolidated financial
statements and should be read in conjunction with the consolidated financial statements of the Group as of and for the year ended December 31, 2016.
The condensed consolidated interim financial statements have been
prepared on the historical cost basis except for the following material items in the statements of financial position:
|
|
•
|
|
derivative instruments, financial assets at fair value through profit or loss and available-for-sale financial assets are measured at fair value, and
|
|
|
•
|
|
net defined benefit liabilities are recognized as the present value of defined benefit obligations less the fair value of plan assets
|
|
|
(c)
|
Functional and Presentation Currency
|
The condensed consolidated interim financial
statements are presented in Korean won, which is the Controlling Company’s functional currency.
|
|
(d)
|
Use of Estimates and Judgments
|
The preparation of the condensed consolidated interim
financial statements in conformity with K-IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by
management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those applied in its consolidated financial statements as of and for the year ended December 31, 2016.
38
|
3.
|
Summary of Significant Accounting Policies
|
The significant accounting policies followed
by the Group in the preparation of its condensed consolidated interim financial statements are the same as those followed by the Group in its preparation of the consolidated financial statements as of and for the year ended December 31, 2016,
except for the application of K-IFRS No. 1034,
Interim Financial Reporting,
and the amended accounting standards explained below:
|
|
(a)
|
Changes in Accounting Policies
|
|
|
(i)
|
K-IFRS No. 1007,
Statement of Cash Flows
|
The Group has adopted the
amendment to K-IFRS No. 1007,
Statement of Cash Flows
, since January 1, 2017. The amendment to K-IFRS No. 1007 is part of the disclosure initiative to improve presentation and disclosure in financial statements and requires an
entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes due to cash flows and non-cash changes such as changes from financing cash flows,
changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair value and other changes. The Group has applied the amendment and disclosed changes in
liabilities arose from financing activities including both changes due to cash flows and non-cash changes in note 26.
|
|
(ii)
|
K-IFRS No. 1012,
Income Taxes
|
The Group has adopted the amendment to K-IFRS
No. 1012,
Income Taxes
, since January 1, 2017. The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible
temporary difference. Furthermore, the amendment provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying
amount. There is no impact of applying this amendment on the condensed consolidated interim financial statements.
39
|
3.
|
Summary of Significant Accounting Policies, Continued
|
|
|
(b)
|
New and Amended Standards and Interpretations Not Yet Adopted
|
A number of new standards
and interpretations are effective for annual periods beginning after January 1, 2017 and earlier application is permitted; however, the Group has not early adopted the following new standards and interpretations in preparing these condensed
consolidated interim financial statements.
|
|
(i)
|
K-IFRS No. 1109,
Financial Instruments
|
The Group plans to adopt
K-IFRS No. 1109,
Financial Instruments
, in its consolidated financial statements for annual periods beginning on January 1, 2018, assess the financial impact of the adoption of K-IFRS No. 1109 and disclose the results in its
consolidated financial statements for the year ending December 31, 2017. As of September 30, 2017, other than the potential impacts described in the consolidated financial statements as of and for the year ended December 31, 2016,
there are no significant changes in relation to preparation for the adoption of this new standard.
|
|
(ii)
|
K-IFRS No. 1115,
Revenue from Contracts with Customers
|
The Group
plans to adopt K-IFRS No. 1115,
Revenue from Contracts with Customers
, in its consolidated financial statements for annual periods beginning on January 1, 2018, assess the financial impact of the adoption of K-IFRS No. 1115 and
disclose the results in its consolidated financial statements for the year ending December 31, 2017. As of September 30, 2017, other than the potential impacts described in the consolidated financial statements as of and for the year ended
December 31, 2016, there are no significant changes in relation to preparation for the adoption of this new standard.
|
|
(iii)
|
K-IFRS No. 2112,
Foreign Currency Transactions and Advance Consideration
|
According to the new interpretation, K-IFRS No. 2112,
Foreign Currency Transactions and Advance Consideration
, the date of the
transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability
arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance, the entity shall determine a date of the transaction for each payment or receipt of advance consideration. K-IFRS No. 2122 is
effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. Management is currently assessing the potential impact on its condensed consolidated interim financial statements resulting from the application
of new interpretation.
40
|
4.
|
Cash and Cash Equivalents and Deposits in Banks
|
Cash and cash equivalents and deposits
in banks as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
W
|
1,974,036
|
|
|
|
1,558,696
|
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
W
|
1,255,624
|
|
|
|
1,091,364
|
|
|
Restricted cash (*)
|
|
|
72,386
|
|
|
|
72,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,328,010
|
|
|
|
1,163,750
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
Restricted cash (*)
|
|
W
|
11
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,302,057
|
|
|
|
2,722,459
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Restricted cash includes mutual growth fund to aid LG Group’s second and third-tier suppliers, pledge to enforce investment plans according to the receipt of subsidies from Gumi city and Gyeongsangbuk-do and
others.
|
41
|
5.
|
Receivables and Other Assets
|
|
|
(a)
|
Trade accounts and notes receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Trade, net
|
|
W
|
3,854,287
|
|
|
|
3,916,171
|
|
|
Due from related parties
|
|
|
993,580
|
|
|
|
1,041,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,847,867
|
|
|
|
4,957,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Other accounts receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Non-trade receivable, net
|
|
W
|
75,007
|
|
|
|
134,161
|
|
|
Accrued income
|
|
|
12,409
|
|
|
|
9,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
87,416
|
|
|
|
143,592
|
|
|
|
|
|
|
|
|
|
|
|
Due from related parties included in other accounts receivable, as of September 30, 2017 and
December 31, 2016 are
W
4,292 million and
W
5,231 million, respectively.
42
|
5.
|
Receivables and Other Assets, Continued
|
|
|
(c)
|
The aging of trade accounts and note receivable, other accounts receivable and long-term non-trade receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Not past due
|
|
W
|
4,847,723
|
|
|
|
78,966
|
|
|
|
8,738
|
|
|
|
(1,906
|
)
|
|
|
(359
|
)
|
|
|
—
|
|
|
Past due 1-15 days
|
|
|
1,681
|
|
|
|
8,325
|
|
|
|
—
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
|
Past due 16-30 days
|
|
|
253
|
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Past due 31-60 days
|
|
|
80
|
|
|
|
175
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
Past due more than 60 days
|
|
|
41
|
|
|
|
703
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(398
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,849,778
|
|
|
|
88,179
|
|
|
|
8,738
|
|
|
|
(1,911
|
)
|
|
|
(763
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
|
5.
|
Receivables and Other Assets, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade
accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Not past due
|
|
W
|
4,958,591
|
|
|
|
140,893
|
|
|
|
2,643
|
|
|
|
(1,488
|
)
|
|
|
(669
|
)
|
|
|
(23
|
)
|
|
Past due 1-15 days
|
|
|
386
|
|
|
|
2,298
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20
|
)
|
|
|
—
|
|
|
Past due 16-30 days
|
|
|
417
|
|
|
|
309
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Past due 31-60 days
|
|
|
65
|
|
|
|
640
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6
|
)
|
|
|
—
|
|
|
Past due more than 60 days
|
|
|
22
|
|
|
|
545
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(398
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,959,481
|
|
|
|
144,685
|
|
|
|
2,643
|
|
|
|
(1,488
|
)
|
|
|
(1,093
|
)
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The movement in the allowance for impairment in respect of trade accounts and notes receivable, other accounts
receivable and long-term non-trade receivable for the nine-month period ended September 30, 2017 and the year ended December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Balance at the beginning of the period
|
|
W
|
1,488
|
|
|
|
1,093
|
|
|
|
23
|
|
|
|
1,507
|
|
|
|
566
|
|
|
|
52
|
|
|
(Reversal of) bad debt expense
|
|
|
423
|
|
|
|
(330
|
)
|
|
|
(23
|
)
|
|
|
(19
|
)
|
|
|
527
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the reporting date
|
|
W
|
1,911
|
|
|
|
763
|
|
|
|
—
|
|
|
|
1,488
|
|
|
|
1,093
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
5.
|
Receivables and Other Assets, Continued
|
|
|
(d)
|
Other assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Advance payments
|
|
W
|
7,349
|
|
|
|
9,297
|
|
|
Prepaid expenses
|
|
|
162,598
|
|
|
|
74,657
|
|
|
Value added tax refundable
|
|
|
228,193
|
|
|
|
259,808
|
|
|
Emission rights
|
|
|
10,400
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
408,540
|
|
|
|
343,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Long-term prepaid expenses
|
|
W
|
408,856
|
|
|
|
358,424
|
|
|
Long-term advanced payment
|
|
|
—
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
408,856
|
|
|
|
359,424
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
|
Other Financial Assets
|
|
|
(a)
|
Other financial assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
6
|
|
|
|
—
|
|
|
Deposits
|
|
|
5,315
|
|
|
|
20,320
|
|
|
Short-term loans
|
|
|
18,469
|
|
|
|
7,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
23,790
|
|
|
|
28,016
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Financial asset at fair value through profit or loss
|
|
W
|
1,382
|
|
|
|
1,382
|
|
|
Available-for-sale financial assets
|
|
|
6,772
|
|
|
|
7,993
|
|
|
Deposits
|
|
|
26,535
|
|
|
|
27,635
|
|
|
Long-term loans
|
|
|
19,653
|
|
|
|
34,760
|
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
2,619
|
|
|
Derivatives(*)
|
|
|
442
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
63,522
|
|
|
|
74,633
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets of related parties as of September 30, 2017 and December 31, 2016 are
W
1,000 million and
W
3,488 million, respectively.
|
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
45
|
6.
|
Other Financial Assets, Continued
|
|
|
(b)
|
Available-for-sale financial assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
6
|
|
|
|
—
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
156
|
|
|
|
154
|
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
Intellectual Discovery, Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
|
Kyulux, Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
|
Henghao Technology Co., Ltd.
|
|
|
1,559
|
|
|
|
1,559
|
|
|
ARCH Venture Fund Vill, L.P.
|
|
|
2,360
|
|
|
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,616
|
|
|
|
7,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,778
|
|
|
|
7,993
|
|
|
|
|
|
|
|
|
|
|
|
Inventories as of September 30, 2017 and December 31, 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Finished goods
|
|
W
|
1,115,425
|
|
|
|
930,818
|
|
|
Work-in-process
|
|
|
802,723
|
|
|
|
685,913
|
|
|
Raw materials
|
|
|
461,111
|
|
|
|
354,791
|
|
|
Supplies
|
|
|
284,773
|
|
|
|
316,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,664,032
|
|
|
|
2,287,785
|
|
|
|
|
|
|
|
|
|
|
|
For the nine-month periods ended September 30, 2017 and 2016, the amount of inventories recognized as
cost of sales, inventory write-downs and reversal and usage of inventory write-downs included in cost of sales are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
Inventories recognized as cost of sales
|
|
W
|
16,175,486
|
|
|
|
16,391,890
|
|
|
Including: inventory write-downs
|
|
|
253,311
|
|
|
|
330,705
|
|
|
Including: reversal and usage of inventory write-downs
|
|
|
(204,123
|
)
|
|
|
(363,755
|
)
|
46
|
8.
|
Investments in Equity Accounted Investees
|
Associates as of September 30, 2017 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
Location
|
|
|
Percentage of ownership
|
|
Fiscal
year end
|
|
Date of
incorporation
|
|
|
Business
|
|
Carrying
amount
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
Paju Electric Glass
Co., Ltd.
|
|
|
Paju,
South Korea
|
|
|
40%
|
|
40%
|
|
December 31
|
|
|
January
2005
|
|
|
Manufacture electric
glass for FPDs
|
|
W
|
48,236
|
|
|
New Optics Ltd.
|
|
|
Yangju,
South Korea
|
|
|
—
|
|
46%
|
|
December 31
|
|
|
August
2005
|
|
|
Manufacture back light
parts for TFT-LCDs
|
|
|
—
|
|
|
INVENIA Co., Ltd.(*1)
|
|
|
Seongnam,
South Korea
|
|
|
13%
|
|
13%
|
|
December 31
|
|
|
January
2001
|
|
|
Develop and manufacture
equipment for FPDs
|
|
|
3,161
|
|
|
WooRee E&L
Co., Ltd.(*1)
|
|
|
Ansan,
South Korea
|
|
|
14%
|
|
14%
|
|
December 31
|
|
|
June 2008
|
|
|
Manufacture LED back
light unit packages
|
|
|
7,407
|
|
|
LB Gemini New
Growth Fund No. 16(*2)
|
|
|
Seoul,
South Korea
|
|
|
31%
|
|
31%
|
|
December 31
|
|
|
December
2009
|
|
|
Invest in small and middle sized
companies and benefit
from M&A
opportunities
|
|
|
5,761
|
|
|
Can Yang
Investments Limited(*1)(*3)
|
|
|
Hong Kong
|
|
|
9%
|
|
9%
|
|
December 31
|
|
|
January
2010
|
|
|
Develop, manufacture
and sell LED parts
|
|
|
2,063
|
|
|
YAS Co., Ltd.(*1)
|
|
|
Paju,
South Korea
|
|
|
15%
|
|
18%
|
|
December 31
|
|
|
April
2002
|
|
|
Develop and
manufacture deposition
equipment
for OLEDs
|
|
|
10,665
|
|
|
Narenanotech Corporation
|
|
|
Yongin,
South Korea
|
|
|
—
|
|
23%
|
|
December 31
|
|
|
December
1995
|
|
|
Manufacture and sell FPD manufacturing
equipment
|
|
|
—
|
|
|
AVATEC Co., Ltd.(*1)
|
|
|
Daegu,
South Korea
|
|
|
17%
|
|
17%
|
|
December 31
|
|
|
August
2000
|
|
|
Process and sell
glass for FPDs
|
|
|
22,123
|
|
|
Arctic Sentinel, Inc.(*1)
|
|
|
Los Angles,
U.S.A.
|
|
|
10%
|
|
10%
|
|
March 31
|
|
|
June 2008
|
|
|
Develop and manufacture
tablet for kids
|
|
|
—
|
|
|
CYNORA GmbH (*1)(*4)
|
|
|
Bruchsal,
Germany
|
|
|
14%
|
|
—
|
|
December 31
|
|
|
March
2003
|
|
|
Develop organic emitting materials for displays
and lighting devices
|
|
|
20,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
119,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47
|
8.
|
Investments in Equity Accounted Investees, Continued
|
|
|
(*1)
|
Although the Controlling Company’s share interests in INVENIA Co., Ltd., WooRee E&L Co., Ltd., Can Yang Investments Limited, YAS Co., Ltd., AVATEC Co., Ltd. Arctic Sentinel, Inc. and CYNORA GmbH are below 20%,
the Controlling Company is able to exercise significant influence through its right to appoint a director to the board of directors of each investee and the transactions between the Controlling Company and the investees are significant. Accordingly,
the investments in these investees have been accounted for using the equity method.
|
|
|
(*2)
|
The Controlling Company is a member of a limited partnership in the LB Gemini New Growth Fund No.16 (“the Fund”). For the nine-month period ended September 30, 2017, the Controlling Company received
W
2,076 million from the Fund as capital distribution and there were no changes in the Controlling Company’s ownership percentage in the Fund. On the other hand, a resolution to dissolve the fund was approved at the general
meeting and the fund is in process of liquidation as of September 30, 2017. Accordingly, there were no additional investments for the nine-month period ended September 30, 2017.
|
|
|
(*3)
|
The Controlling Company recognized an impairment loss of
W
4,234 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in Can Yang Investments
Limited.
|
|
|
(*4)
|
In September 2017, the Controlling Company invested
W
20,308 million and acquired 88,584 shares of preferred stock with voting rights in CYNORA GmbH. As of September 30, 2017, the Controlling
Company‘s ownership percentage in CYNORA GmbH is 14% and the Controlling Company has the right to appoint a director to the board of directors of the investee.
|
For the nine-month period ended September 30, 2017, the Controlling Company disposed of the entire investments in New Optics Ltd. and
Narenanotech Corporation.
48
|
9.
|
Property, Plant and Equipment
|
For the nine-month periods ended September 30, 2017
and 2016, the Group purchased property, plant and equipment of
W
5,036,458 million and
W
3,203,954 million, respectively. The capitalized borrowing costs and the annualized capitalization rate were
W
29,963 million and 1.89%, and
W
8,025 million and 2.17% for the nine-month periods ended September 30, 2017 and 2016, respectively. Also, for the nine-month periods ended September 30, 2017 and 2016, the
Group disposed of property, plant and equipment with carrying amounts of
W
71,627 million and
W
28,345 million, respectively, and recognized
W
14,259million and
W
9,340 million as gain
and loss, respectively, on disposal of property, plant and equipment for the nine-month period ended September 30, 2017 (gain and loss for the nine-month period ended September 30, 2016:
W
7,662 million and
W
3,122 million, respectively).
The Group capitalizes expenditures related to development activities,
such as expenditures incurred on designing, manufacturing and testing of products after those related activities meet the capitalization criteria of development costs including technical feasibility, future economic benefits and others. The balances
of capitalized development costs as of September 30, 2017 and December 31, 2016 are
W
288,642 million and
W
256,340 million, respectively.
49
|
11.
|
Financial Liabilities
|
|
|
(a)
|
Financial liabilities as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
W
|
—
|
|
|
|
113,209
|
|
|
Current portion of long-term debt
|
|
|
1,218,849
|
|
|
|
554,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,218,849
|
|
|
|
667,909
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Won denominated borrowings
|
|
W
|
1,221,421
|
|
|
|
821,922
|
|
|
Foreign currency denominated borrowings
|
|
|
1,522,686
|
|
|
|
1,777,877
|
|
|
Bonds
|
|
|
1,421,346
|
|
|
|
1,511,062
|
|
|
Derivatives(*)
|
|
|
79
|
|
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,165,532
|
|
|
|
4,111,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
|
|
(b)
|
Short-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, USD)
|
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
|
|
|
|
|
Standard Chartered Bank Korea Limited
|
|
|
—
|
|
|
W
|
—
|
|
|
|
113,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency equivalent
|
|
|
|
|
|
|
—
|
|
|
|
USD 94
|
|
|
|
(c)
|
Won denominated long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Woori Bank
|
|
|
3-year Korean Treasury
Bond rate - 1.25, 2.75
|
|
|
W
|
2,092
|
|
|
|
2,991
|
|
|
Shinhan Bank
|
|
|
CD rate (91days) + 0.30
|
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Korea Development Bank and others
|
|
|
CD rate (91days) + 0.64~0.74
2.28~2.58
|
|
|
|
1,020,000
|
|
|
|
620,000
|
|
|
Less current portion of long-term borrowings
|
|
|
|
|
|
|
(671
|
)
|
|
|
(1,069
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,221,421
|
|
|
|
821,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
11.
|
Financial Liabilities, Continued
|
|
|
(d)
|
Foreign currency denominated long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, USD and CNY)
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)(*)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
The Export-Import Bank of Korea and others
|
|
|
3ML+0.55~1.04
|
|
|
W
|
808,423
|
|
|
|
1,027,225
|
|
|
Standard Chartered Bank Korea Limited
|
|
|
—
|
|
|
|
—
|
|
|
|
8,469
|
|
|
China Construction Bank and others
|
|
|
USD: 3ML+0.80~2.00
CNY: 4.28
|
|
|
|
1,352,718
|
|
|
|
926,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency equivalent
|
|
|
|
|
|
|
USD 1,395
|
|
|
|
USD 1,157
|
|
|
|
|
|
|
|
|
|
CNY 3,263
|
|
|
|
CNY 3,264
|
|
|
Less current portion of long-term borrowings
|
|
|
|
|
|
|
(638,455
|
)
|
|
|
(183,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,522,686
|
|
|
|
1,777,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
ML represents Month LIBOR (London Inter-Bank Offered Rates).
|
|
|
(e)
|
Details of bonds issued and outstanding as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Annual interest rate as
of
September 30, 2017 (%)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Won denominated bonds(*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicly issued bonds
|
|
|
October 2017 ~
June 2022
|
|
|
|
1.73~3.73
|
|
|
W
|
2,005,000
|
|
|
|
1,885,000
|
|
|
Less discount on bonds
|
|
|
|
|
|
|
|
|
|
|
(3,931
|
)
|
|
|
(4,182
|
)
|
|
Less current portion
|
|
|
|
|
|
|
|
|
|
|
(579,723
|
)
|
|
|
(369,756
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,421,346
|
|
|
|
1,511,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.
|
51
The Controlling Company and certain subsidiaries’ defined
benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Controlling Company or certain subsidiaries.
|
|
(a)
|
Net defined benefit liabilities recognized as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Present value of partially funded defined benefit obligations
|
|
W
|
1,523,269
|
|
|
|
1,401,396
|
|
|
Fair value of plan assets
|
|
|
(1,225,963
|
)
|
|
|
(1,258,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
297,306
|
|
|
|
142,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Expenses recognized in profit or loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Current service cost
|
|
W
|
49,034
|
|
|
|
52,705
|
|
|
|
146,885
|
|
|
|
158,124
|
|
|
Net interest cost
|
|
|
598
|
|
|
|
2,569
|
|
|
|
1,794
|
|
|
|
7,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
49,632
|
|
|
|
55,274
|
|
|
|
148,679
|
|
|
|
165,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Plan assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
|
Guaranteed deposits in banks
|
|
W
1,225,963
|
|
|
1,258,409
|
|
As of September 30, 2017, the Controlling Company maintains the plan assets primarily with Mirae Asset
Daewoo Co., Ltd., Shinhan Bank and others.
|
|
(d)
|
Remeasurements of the net defined benefit liabilities included in other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Remeasurements of net defined benefit liabilities
|
|
W
|
(3,639
|
)
|
|
|
(1,033
|
)
|
|
|
(11,963
|
)
|
|
|
(3,817
|
)
|
|
Tax effect
|
|
|
881
|
|
|
|
250
|
|
|
|
2,895
|
|
|
|
924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities, net of income tax
|
|
W
|
(2,758
|
)
|
|
|
(783
|
)
|
|
|
(9,068
|
)
|
|
|
(2,893
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52
|
13.
|
Provisions and Other Liabilities
|
|
|
(a)
|
Changes in provisions for the period ended September 30, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Warranties (*)
|
|
|
Others
|
|
|
Total
|
|
|
Balance at January 1, 2017
|
|
W
|
62,462
|
|
|
|
1,665
|
|
|
|
64,127
|
|
|
Additions
|
|
|
164,110
|
|
|
|
877
|
|
|
|
164,987
|
|
|
Usage
|
|
|
(131,257
|
)
|
|
|
—
|
|
|
|
(131,257
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2017
|
|
W
|
95,315
|
|
|
|
2,542
|
|
|
|
97,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
W
|
71,272
|
|
|
|
2,542
|
|
|
|
73,814
|
|
|
Non-current
|
|
W
|
24,043
|
|
|
|
—
|
|
|
|
24,043
|
|
|
|
(*)
|
The provision for warranties covers defective products and is normally applicable for 18 months from the date of purchase. The warranty liability is calculated by using historical and anticipated rates of warranty
claims, and costs per claim to satisfy the Group’s warranty obligation.
|
|
|
(b)
|
Other liabilities as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Withholdings
|
|
W
|
37,809
|
|
|
|
40,190
|
|
|
Unearned revenues
|
|
|
6,587
|
|
|
|
8,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
44,396
|
|
|
|
48,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Long-term accrued expenses
|
|
W
|
69,753
|
|
|
|
65,616
|
|
|
Long-term other accounts payable
|
|
|
159
|
|
|
|
3,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
69,912
|
|
|
|
69,146
|
|
|
|
|
|
|
|
|
|
|
|
53
|
14.
|
Contingencies and Commitments
|
Delaware Display Group LLC and Innovative Display Technologies LLC
(“DDG” and “IDT”)
In December 2013, Delaware Display Group LLC and Innovative Display Technologies LLC filed a
patent infringement case (“First Case”) against the Controlling Company and LG Display America, Inc. in the United States District Court for the District of Delaware and “DDG” and “IDT” filed a new patent infringement
case against the Controlling Company and LG Display America, Inc. over the three patents that were dismissed without prejudice from the First Case in December 2015. Additionally, in August 2016, Innovative Display Technologies LLC filed a new patent
infringement case against the Controlling Company and LG Display America, Inc. in the United States District Court for the Eastern District of Texas with respect to two new patents. In March 2017, the parties reached settlements in principle through
mediation. In April 2017, the parties filed a stipulation of dismissal and amicably settled all claims asserted in the above-mentioned patent litigations.
Surpass Tech Innovation LLC
In March 2014, Surpass Tech Innovation LLC filed a complaint in the United States District Court for the District of Delaware against the
Controlling Company and LG Display America, Inc. for alleged patent infringement. In April 2017, the case was terminated pursuant to a stipulation of dismissal filed by Surpass Tech Innovation LLC.
Others
The Group
is defending against various claims in addition to pending proceedings described above. The Group does not have a present obligation for these matters and has not recognized any provision at September 30, 2017.
Factoring and securitization of accounts receivable
The Controlling Company has agreements with Korea Development Bank and several other banks for accounts receivable sales negotiating facilities
of up to an aggregate of USD 1,793 million (
W
2,056,584 million) in connection with the Controlling Company’s export sales transactions with its subsidiaries. As of September 30, 2017, no short-term borrowings were
outstanding in connection with these agreements. In connection with all of the contracts in this paragraph, the Controlling Company has sold its accounts receivable with recourse.
54
|
14.
|
Contingencies and Commitments, Continued
|
The Controlling Company and oversea subsidiaries entered into agreements with financial
institutions for accounts receivables sales negotiating facilities. The respective maximum amount of accounts receivables sales and the amount of sold accounts receivables before maturity by contract are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of USD and KRW)
|
|
|
Classification
|
|
Financial institutions
|
|
|
Maximum
|
|
|
Not yet due
|
|
|
|
|
|
|
|
Contractual
amount
|
|
|
KRW
equivalent
|
|
|
Contractual
amount
|
|
|
KRW
equivalent
|
|
|
Controlling Company
|
|
|
Shinhan Bank
|
|
|
|
KRW 90,000
|
|
|
|
90,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Sumitomo Mitsui Banking
Corporation
|
|
|
|
USD 20
|
|
|
|
22,934
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi
UFJ
|
|
|
|
USD 70
|
|
|
|
80,269
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
BNP Paribas
|
|
|
|
USD 150
|
|
|
|
172,005
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
USD 240
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KRW 90,000
|
|
|
|
365,208
|
|
|
|
—
|
|
|
|
—
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
Standard Chartered
Bank
|
|
|
|
USD 300
|
|
|
|
344,010
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
BNP Paribas
|
|
|
|
USD 82
|
|
|
|
94,029
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Hongkong & Shanghai
Banking Corp.
|
|
|
|
USD 60
|
|
|
|
68,802
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Taishin International
Bank
|
|
|
|
USD 280
|
|
|
|
321,076
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Sumitomo Mitsui
Banking Corporation
|
|
|
|
USD 100
|
|
|
|
114,670
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Germany GmbH
|
|
|
Citibank
|
|
|
|
USD 160
|
|
|
|
183,472
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
BNP Paribas
|
|
|
|
USD 75
|
|
|
|
86,003
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display America, Inc.
|
|
|
Hongkong & Shanghai
Banking Corp.
|
|
|
|
USD 400
|
|
|
|
458,680
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Standard Chartered
Bank
|
|
|
|
USD 400
|
|
|
|
458,680
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
Sumitomo Mitsui
Banking Corporation
|
|
|
|
USD 250
|
|
|
|
286,675
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Japan Co., Ltd.
|
|
|
Sumitomo Mitsui
Banking Corporation
|
|
|
|
USD 90
|
|
|
|
103,203
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
Industrial and
Commercial Bank of
China
|
|
|
|
USD 64
|
|
|
|
73,389
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD 2,261
|
|
|
|
2,592,689
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD 2,501
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KRW 90,000
|
|
|
|
2,957,897
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In connection with all of the contracts in the above table, the Controlling Company has sold its accounts
receivable without recourse.
55
|
14.
|
Contingencies and Commitments, Continued
|
Letters of credit
As of September 30, 2017, the Controlling Company has agreements in relation to the opening of letters of credit up to USD 30 million
(
W
34,401 million) with KEB Hana Bank, USD 80 million (
W
91,736 million) with Bank of China and USD 50 million (
W
57,335 million) with Sumitomo Mitsui Banking Corporation.
Payment guarantees
The Controlling Company obtained payment guarantees amounting to USD 900 million (
W
1,032,030 million) from KEB Hana Bank
and others for advance received related to the long-term supply agreements and USD 8.5 million (
W
9,747 million) from Shinhan bank for value added tax payments in Poland.
LG Display (China) Co., Ltd. and other subsidiaries are provided with payment guarantees from the Bank of China and other various banks
amounting to CNY 3,760 million (
W
648,036 million), JPY 700 million (
W
7,143 million), EUR 2.5 million (
W
3,377 million), VND 40,922 million (
W
2,070 million), USD
0.5 million (
W
573 million) and PLN 0.2 million (
W
63 million), respectively, for their local tax payments and utility payments.
Credit facility
LG Display Vietnam Co., Ltd. and other subsidiary have entered into long-term credit facility agreements of up to USD 525 million
(
W
602,018 million) with Sumitomo Mitsui Banking Corporation and other various banks and borrowings as of September 30, 2017 amount to USD 390 million (
W
447,213 million).
License agreements
As of September 30, 2017, in relation to its LCD business, the Group has technical license agreements with Hitachi Display, Ltd. and
others and has a trademark license agreement with LG Corp.
Long-term supply agreement
As of September 30, 2017, in connection with long-term supply agreements with customers, the Controlling Company USD 900 million
(
W
1,032,030 million) in long-term advance. The advance received will be offset against outstanding accounts receivable balances after a given period of time, as well as those arising from the supply of products thereafter. The
Controlling Company received payment guarantees amounting to USD 900 million (
W
1,032,030 million) from KEB Hana Bank and other various banks relating to advance received.
Pledged Assets
Regarding the secured bank loan amounting to USD 300 million (
W
343,161 million) and CNY 1,964 million
(
W
338,461 million) from China Construction Bank, as of September 30, 2017, the Group provided its property, plant and equipment and others with carrying amount of
W
425,314 million as pledged assets.
56
The Controlling Company is authorized to issue 500,000,000 shares of capital
stock (par value
W
5,000), and as of September 30, 2017 and December 31, 2016, the number of issued common shares is 357,815,700. There have been no changes in the capital stock from January 1, 2016 to
September 30, 2017.
Reserves consist mainly of the following:
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations.
Other comprehensive loss from associates and joint venture
The other comprehensive loss from associates and joint venture comprises the amount related to change in equity of investments in equity
accounted investees.
Reserves as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Foreign currency translation differences for foreign operations
|
|
W
|
(61,335
|
)
|
|
|
(59,042
|
)
|
|
Other comprehensive loss from associates (excluding remeasurements)
|
|
|
(27,069
|
)
|
|
|
(29,436
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(88,404
|
)
|
|
|
(88,478
|
)
|
|
|
|
|
|
|
|
|
|
|
57
Details of revenue for the three-month and nine-month periods ended September 30,
2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month periods
ended September 30
|
|
|
For the nine-month periods ended
September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Sales of goods
|
|
W
|
6,962,663
|
|
|
|
6,714,672
|
|
|
|
20,627,084
|
|
|
|
18,541,255
|
|
|
Royalties
|
|
|
4,584
|
|
|
|
1,651
|
|
|
|
15,799
|
|
|
|
10,217
|
|
|
Others
|
|
|
5,848
|
|
|
|
7,452
|
|
|
|
21,260
|
|
|
|
16,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,973,095
|
|
|
|
6,723,775
|
|
|
|
20,664,143
|
|
|
|
18,568,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.
|
Geographic and Other Information
|
The following is a summary of sales by region based on
the location of the customers for the three-month and nine-month periods ended September 30, 2017 and 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
Region
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Domestic
|
|
W
|
420,259
|
|
|
|
435,018
|
|
|
|
1,425,205
|
|
|
|
1,425,064
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
|
|
|
4,534,031
|
|
|
|
4,717,986
|
|
|
|
13,466,122
|
|
|
|
12,733,440
|
|
|
Asia (excluding China)
|
|
|
662,844
|
|
|
|
477,990
|
|
|
|
1,881,814
|
|
|
|
1,558,662
|
|
|
The Americas
|
|
|
757,264
|
|
|
|
606,738
|
|
|
|
2,050,958
|
|
|
|
1,485,808
|
|
|
Europe (excluding Poland)
|
|
|
383,288
|
|
|
|
281,774
|
|
|
|
1,009,403
|
|
|
|
648,331
|
|
|
Poland
|
|
|
215,409
|
|
|
|
204,269
|
|
|
|
830,641
|
|
|
|
716,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub total
|
|
W
|
6,552,836
|
|
|
|
6,288,757
|
|
|
|
19,238,938
|
|
|
|
17,143,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
6,973,095
|
|
|
|
6,723,775
|
|
|
|
20,664,143
|
|
|
|
18,568,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to Company A and Company B amount to
W
6,458,984 million and
W
4,784,436
million, respectively, for the nine-month period ended September 30, 2017 (the nine-month period ended September 30, 2016:
W
6,114,130 million and
W
4,247,605 million). The Group’s top ten end-brand
customers together accounted for 80% of sales for the nine-month period ended September 30, 2017 (the nine-month period ended September 30, 2016: 81%).
58
|
17.
|
Geographic and Other Information, Continued
|
|
|
(b)
|
Non-current assets by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Region
|
|
Property, plant
and equipment
|
|
|
Intangible
assets
|
|
|
Property, plant
and equipment
|
|
|
Intangible
assets
|
|
|
Domestic
|
|
W
|
11,136,880
|
|
|
|
697,218
|
|
|
|
8,758,171
|
|
|
|
673,966
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
|
|
|
3,294,479
|
|
|
|
18,156
|
|
|
|
3,079,724
|
|
|
|
23,298
|
|
|
Others
|
|
|
572,782
|
|
|
|
173,218
|
|
|
|
193,554
|
|
|
|
197,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub total
|
|
|
3,867,261
|
|
|
|
191,374
|
|
|
|
3,273,278
|
|
|
|
220,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
15,004,141
|
|
|
|
888,592
|
|
|
|
12,031,449
|
|
|
|
894,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Revenue by product and services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month periods
ended September 30
|
|
|
For the nine-month periods
ended September 30
|
|
|
Product
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Panels for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Televisions
|
|
W
|
2,828,842
|
|
|
|
2,595,755
|
|
|
|
8,871,495
|
|
|
|
7,111,441
|
|
|
Desktop monitors
|
|
|
1,144,986
|
|
|
|
1,080,550
|
|
|
|
3,355,549
|
|
|
|
2,925,806
|
|
|
Tablet products
|
|
|
630,351
|
|
|
|
611,282
|
|
|
|
1,702,224
|
|
|
|
2,022,838
|
|
|
Notebook computers
|
|
|
513,477
|
|
|
|
623,805
|
|
|
|
1,627,822
|
|
|
|
1,687,761
|
|
|
Mobile and others
|
|
|
1,855,439
|
|
|
|
1,812,383
|
|
|
|
5,107,053
|
|
|
|
4,820,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,973,095
|
|
|
|
6,723,775
|
|
|
|
20,664,143
|
|
|
|
18,568,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59
|
18.
|
The Nature of Expenses and Others
|
The classification of expenses by nature for the
three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Changes in inventories
|
|
W
|
(320,648
|
)
|
|
|
(38,877
|
)
|
|
|
(376,247
|
)
|
|
|
(140,286
|
)
|
|
Purchases of raw materials, merchandise and others
|
|
|
3,730,920
|
|
|
|
3,780,682
|
|
|
|
10,131,999
|
|
|
|
10,205,881
|
|
|
Depreciation and amortization
|
|
|
834,107
|
|
|
|
700,345
|
|
|
|
2,329,103
|
|
|
|
2,301,625
|
|
|
Outsourcing fees
|
|
|
205,591
|
|
|
|
195,384
|
|
|
|
559,830
|
|
|
|
596,196
|
|
|
Labor costs
|
|
|
789,156
|
|
|
|
762,574
|
|
|
|
2,318,758
|
|
|
|
2,298,548
|
|
|
Supplies and others
|
|
|
334,926
|
|
|
|
247,733
|
|
|
|
887,204
|
|
|
|
733,883
|
|
|
Utility
|
|
|
235,905
|
|
|
|
221,814
|
|
|
|
636,247
|
|
|
|
629,540
|
|
|
Fees and commissions
|
|
|
170,389
|
|
|
|
159,999
|
|
|
|
507,608
|
|
|
|
467,642
|
|
|
Shipping costs
|
|
|
60,732
|
|
|
|
56,264
|
|
|
|
183,161
|
|
|
|
159,282
|
|
|
Advertising
|
|
|
51,400
|
|
|
|
16,683
|
|
|
|
140,858
|
|
|
|
44,519
|
|
|
Warranty expenses
|
|
|
37,858
|
|
|
|
34,065
|
|
|
|
164,110
|
|
|
|
109,258
|
|
|
Taxes and dues
|
|
|
18,199
|
|
|
|
18,674
|
|
|
|
69,059
|
|
|
|
56,422
|
|
|
Travel
|
|
|
23,543
|
|
|
|
17,623
|
|
|
|
65,274
|
|
|
|
54,061
|
|
|
Others
|
|
|
222,625
|
|
|
|
253,055
|
|
|
|
655,465
|
|
|
|
691,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,394,703
|
|
|
|
6,426,018
|
|
|
|
18,272,429
|
|
|
|
18,207,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses consist of cost of sales, selling, administrative, research and development expenses and other
non-operating expenses, excluding foreign exchange differences.
60
|
19.
|
Selling and Administrative Expenses
|
Details of selling and administrative expenses for
the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Salaries
|
|
W
|
78,565
|
|
|
|
72,692
|
|
|
|
237,005
|
|
|
|
212,791
|
|
|
Expenses related to defined benefit plans
|
|
|
6,826
|
|
|
|
7,504
|
|
|
|
20,627
|
|
|
|
22,432
|
|
|
Other employee benefits
|
|
|
25,825
|
|
|
|
23,307
|
|
|
|
70,832
|
|
|
|
64,290
|
|
|
Shipping costs
|
|
|
50,956
|
|
|
|
47,761
|
|
|
|
157,296
|
|
|
|
134,231
|
|
|
Fees and commissions
|
|
|
49,501
|
|
|
|
45,467
|
|
|
|
144,775
|
|
|
|
141,029
|
|
|
Depreciation
|
|
|
34,971
|
|
|
|
31,253
|
|
|
|
103,670
|
|
|
|
98,236
|
|
|
Taxes and dues
|
|
|
7,314
|
|
|
|
7,881
|
|
|
|
35,445
|
|
|
|
22,469
|
|
|
Advertising
|
|
|
51,400
|
|
|
|
16,683
|
|
|
|
140,858
|
|
|
|
44,519
|
|
|
Warranty expenses
|
|
|
37,858
|
|
|
|
34,065
|
|
|
|
164,110
|
|
|
|
109,258
|
|
|
Rent
|
|
|
6,384
|
|
|
|
6,294
|
|
|
|
20,243
|
|
|
|
19,043
|
|
|
Insurance
|
|
|
3,131
|
|
|
|
3,362
|
|
|
|
9,365
|
|
|
|
8,234
|
|
|
Travel
|
|
|
7,047
|
|
|
|
5,230
|
|
|
|
20,704
|
|
|
|
17,171
|
|
|
Training
|
|
|
5,003
|
|
|
|
3,296
|
|
|
|
13,459
|
|
|
|
11,762
|
|
|
Others
|
|
|
18,661
|
|
|
|
13,181
|
|
|
|
51,189
|
|
|
|
37,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
383,442
|
|
|
|
317,976
|
|
|
|
1,189,578
|
|
|
|
942,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of personnel expenses for the three-month and nine-month periods
ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Salaries and wages
|
|
W
|
651,558
|
|
|
|
618,783
|
|
|
|
1,920,447
|
|
|
|
1,848,953
|
|
|
Other employee benefits
|
|
|
119,113
|
|
|
|
112,564
|
|
|
|
346,674
|
|
|
|
343,368
|
|
|
Contributions to National Pension plan
|
|
|
18,572
|
|
|
|
18,012
|
|
|
|
54,324
|
|
|
|
51,693
|
|
|
Expenses related to defined benefit plan
|
|
|
49,632
|
|
|
|
55,274
|
|
|
|
148,679
|
|
|
|
165,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
838,875
|
|
|
|
804,633
|
|
|
|
2,470,124
|
|
|
|
2,409,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61
|
21.
|
Other Non-operating Income and Other Non-operating Expenses
|
|
|
(a)
|
Details of other non-operating income for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Foreign currency gain
|
|
W
|
223,696
|
|
|
|
211,730
|
|
|
|
744,635
|
|
|
|
826,063
|
|
|
Gain on disposal of property, plant and equipment
|
|
|
907
|
|
|
|
711
|
|
|
|
14,259
|
|
|
|
7,662
|
|
|
Gain on disposal of intangible assets
|
|
|
—
|
|
|
|
—
|
|
|
|
308
|
|
|
|
—
|
|
|
Rental income
|
|
|
612
|
|
|
|
1,023
|
|
|
|
1,490
|
|
|
|
3,711
|
|
|
Others
|
|
|
1,585
|
|
|
|
18,066
|
|
|
|
6,590
|
|
|
|
23,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
226,800
|
|
|
|
231,530
|
|
|
|
767,282
|
|
|
|
860,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Details of other non-operating expenses for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Foreign currency loss
|
|
W
|
198,270
|
|
|
|
309,939
|
|
|
|
848,464
|
|
|
|
948,627
|
|
|
Loss on disposal of property, plant and equipment
|
|
|
3,970
|
|
|
|
634
|
|
|
|
9,340
|
|
|
|
3,122
|
|
|
Loss on disposal of intangible assets
|
|
|
9
|
|
|
|
—
|
|
|
|
9
|
|
|
|
20
|
|
|
Impairment loss on intangible assets
|
|
|
40
|
|
|
|
40
|
|
|
|
1,717
|
|
|
|
125
|
|
|
Donations
|
|
|
2,301
|
|
|
|
12,550
|
|
|
|
12,753
|
|
|
|
17,387
|
|
|
Expenses related to legal proceedings or claims and others
|
|
|
1,281
|
|
|
|
12,182
|
|
|
|
1,609
|
|
|
|
25,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
205,871
|
|
|
|
335,345
|
|
|
|
873,892
|
|
|
|
995,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
|
22.
|
Finance Income and Finance Costs
|
|
|
(a)
|
Finance income and costs recognized in profit and loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Finance income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
16,953
|
|
|
|
10,188
|
|
|
|
41,246
|
|
|
|
30,650
|
|
|
Foreign currency gain
|
|
|
18,462
|
|
|
|
73,004
|
|
|
|
119,232
|
|
|
|
122,710
|
|
|
Gain on disposal of investments in equity accounted investees
|
|
|
—
|
|
|
|
8,303
|
|
|
|
—
|
|
|
|
8,303
|
|
|
Gain on transaction of derivatives
|
|
|
—
|
|
|
|
1,271
|
|
|
|
3,106
|
|
|
|
3,811
|
|
|
Gain on valuation of derivatives
|
|
|
337
|
|
|
|
—
|
|
|
|
592
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
35,752
|
|
|
|
92,766
|
|
|
|
164,176
|
|
|
|
165,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
23,342
|
|
|
|
28,045
|
|
|
|
70,628
|
|
|
|
88,211
|
|
|
Foreign currency loss
|
|
|
21,860
|
|
|
|
16,428
|
|
|
|
73,074
|
|
|
|
71,976
|
|
|
Loss on disposal of investments in equity accounted investees
|
|
|
—
|
|
|
|
260
|
|
|
|
42,023
|
|
|
|
5,622
|
|
|
Loss on impairment of investments in equity accounted investees
|
|
|
—
|
|
|
|
—
|
|
|
|
4,234
|
|
|
|
6,137
|
|
|
Loss on impairment of available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
1,298
|
|
|
|
—
|
|
|
Loss on sale of trade accounts and notes receivable
|
|
|
272
|
|
|
|
719
|
|
|
|
421
|
|
|
|
2,717
|
|
|
Loss on transaction of derivatives
|
|
|
150
|
|
|
|
1,382
|
|
|
|
361
|
|
|
|
3,762
|
|
|
Loss on valuation of derivatives
|
|
|
—
|
|
|
|
13,338
|
|
|
|
—
|
|
|
|
12,715
|
|
|
Other
|
|
|
330
|
|
|
|
322
|
|
|
|
922
|
|
|
|
940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
45,954
|
|
|
|
60,494
|
|
|
|
192,961
|
|
|
|
192,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Finance income and costs recognized in other comprehensive income or loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(77
|
)
|
|
Tax effect
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income (costs) recognized in other comprehensive income or loss after tax
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
(a)
|
Details of income tax expense for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Current tax expense
|
|
W
|
188,966
|
|
|
|
51,205
|
|
|
|
502,952
|
|
|
|
134,572
|
|
|
Deferred tax expense (benefit)
|
|
|
(67,487
|
)
|
|
|
7,692
|
|
|
|
(107,699
|
)
|
|
|
10,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
W
|
121,479
|
|
|
|
58,897
|
|
|
|
395,253
|
|
|
|
144,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Deferred Tax Assets and Liabilities
|
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the deferred tax assets at the reporting date will be realized with the Group’s estimated future taxable income.
Deferred tax assets and liabilities as of September 30, 2017 and December 31, 2016 are attributable to the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Assets
|
|
|
Liabilities
|
|
|
Total
|
|
|
|
|
September 30,
2017
|
|
|
December, 31,
2016
|
|
|
September 30,
2017
|
|
|
December, 31,
2016
|
|
|
September 30,
2017
|
|
|
December, 31,
2016
|
|
|
Other accounts receivable, net
|
|
W
|
—
|
|
|
|
—
|
|
|
|
(1,404
|
)
|
|
|
(1,190
|
)
|
|
|
(1,404
|
)
|
|
|
(1,190
|
)
|
|
Inventories, net
|
|
|
47,487
|
|
|
|
35,771
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47,487
|
|
|
|
35,771
|
|
|
Defined benefit liabilities, net
|
|
|
49,719
|
|
|
|
10,817
|
|
|
|
—
|
|
|
|
—
|
|
|
|
49,719
|
|
|
|
10,817
|
|
|
Investments in subsidiaries and associates
|
|
|
38,305
|
|
|
|
34,777
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38,305
|
|
|
|
34,777
|
|
|
Accrued expenses
|
|
|
127,478
|
|
|
|
122,998
|
|
|
|
—
|
|
|
|
—
|
|
|
|
127,478
|
|
|
|
122,998
|
|
|
Property, plant and equipment
|
|
|
374,006
|
|
|
|
338,860
|
|
|
|
—
|
|
|
|
—
|
|
|
|
374,006
|
|
|
|
338,860
|
|
|
Intangible assets
|
|
|
3,323
|
|
|
|
744
|
|
|
|
(27,320
|
)
|
|
|
(31,771
|
)
|
|
|
(23,997
|
)
|
|
|
(31,027
|
)
|
|
Provisions
|
|
|
23,217
|
|
|
|
15,051
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,217
|
|
|
|
15,051
|
|
|
Gain or loss on foreign currency translation, net
|
|
|
11
|
|
|
|
11
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
11
|
|
|
Others
|
|
|
25,005
|
|
|
|
21,435
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,005
|
|
|
|
21,435
|
|
|
Tax credit carryforwards
|
|
|
285,670
|
|
|
|
287,400
|
|
|
|
—
|
|
|
|
—
|
|
|
|
285,670
|
|
|
|
287,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets (liabilities)
|
|
W
|
974,221
|
|
|
|
867,864
|
|
|
|
(28,724
|
)
|
|
|
(32,961
|
)
|
|
|
945,497
|
|
|
|
834,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate applicable to the Controlling Company is 24.2% for the nine-month period ended
September 30, 2017. Meanwhile, effective tax rate for the nine-month period ended September 30, 2017 decreased primarily due to change of the probability of utilizing deferred tax assets including tax credit carryforwards.
64
|
|
(a)
|
Basic earnings per share for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won and number of shares)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Profit for the period
|
|
W
|
441,981,942,670
|
|
|
|
177,824,586,727
|
|
|
|
1,765,772,319,875
|
|
|
|
108,675,894,795
|
|
|
Weighted-average number of common stocks outstanding
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
W
|
1,235
|
|
|
|
497
|
|
|
|
4,935
|
|
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three-month and nine-month periods ended September 30, 2017 and 2016, there were no events or
transactions that resulted in changes in the number of common stocks used for calculating earnings per share.
|
|
(b)
|
Diluted earnings per share for the nine-month periods ended September 30, 2017 and 2016 are not calculated since there was no potential common stock.
|
|
25.
|
Financial Risk Management
|
The Group is exposed to credit risk, liquidity risk and
market risks. The Group identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below a threshold level.
Market risk is the risk that changes in market prices, such as foreign exchange
rates, interest rates and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimizing the return.
The Group is exposed to currency risk on sales, purchases and borrowings that
are denominated in a currency other than the functional currency of the Group, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, CNY, JPY, etc.
Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash
flows generated by the underlying operations of the Group, primarily KRW and USD.
In respect of other monetary assets and liabilities
denominated in foreign currencies, the Group adopts policies to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
65
|
25.
|
Financial Risk Management, Continued
|
i) Exposure to currency risk
The Group’s exposure to foreign currency risk based on notional amounts as of September 30, 2017 and December 31, 2016 is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
September 30, 2017
|
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
TWD
|
|
|
EUR
|
|
|
PLN
|
|
|
VND
|
|
|
Cash and cash equivalents
|
|
|
492
|
|
|
|
243
|
|
|
|
4,132
|
|
|
|
35
|
|
|
|
3
|
|
|
|
149
|
|
|
|
1,081,797
|
|
|
Deposits in banks
|
|
|
—
|
|
|
|
—
|
|
|
|
1,700
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Trade accounts and notes receivable
|
|
|
3,799
|
|
|
|
2
|
|
|
|
896
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-trade receivable
|
|
|
10
|
|
|
|
1,491
|
|
|
|
54
|
|
|
|
4
|
|
|
|
6
|
|
|
|
—
|
|
|
|
639
|
|
|
Other assets denominated in foreign currencies
|
|
|
1
|
|
|
|
206
|
|
|
|
115
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,947
|
|
|
Trade accounts and notes payable
|
|
|
(1,222
|
)
|
|
|
(14,603
|
)
|
|
|
(2,484
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(46,647
|
)
|
|
Other accounts payable
|
|
|
(209
|
)
|
|
|
(11,971
|
)
|
|
|
(1,411
|
)
|
|
|
(6
|
)
|
|
|
(6
|
)
|
|
|
(3
|
)
|
|
|
(1,225,052
|
)
|
|
Long-term other account payable
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Debt
|
|
|
(1,395
|
)
|
|
|
—
|
|
|
|
(3,263
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
1,476
|
|
|
|
(24,632
|
)
|
|
|
(262
|
)
|
|
|
39
|
|
|
|
3
|
|
|
|
146
|
|
|
|
(187,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
25.
|
Financial Risk Management, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31, 2016
|
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
TWD
|
|
|
EUR
|
|
|
PLN
|
|
|
VND
|
|
|
Cash and cash equivalents
|
|
|
518
|
|
|
|
308
|
|
|
|
3,785
|
|
|
|
36
|
|
|
|
1
|
|
|
|
77
|
|
|
|
338,770
|
|
|
Deposits in banks
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Trade accounts and notes receivable
|
|
|
3,558
|
|
|
|
10
|
|
|
|
1,776
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-trade receivable
|
|
|
52
|
|
|
|
2,434
|
|
|
|
199
|
|
|
|
12
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
Long-term non-trade receivable
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other assets denominated in foreign currencies
|
|
|
1
|
|
|
|
259
|
|
|
|
210
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
506
|
|
|
Trade accounts and notes payable
|
|
|
(1,204
|
)
|
|
|
(14,940
|
)
|
|
|
(2,567
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other accounts payable
|
|
|
(397
|
)
|
|
|
(9,836
|
)
|
|
|
(771
|
)
|
|
|
(7
|
)
|
|
|
(2
|
)
|
|
|
(5
|
)
|
|
|
(665,869
|
)
|
|
Debt
|
|
|
(1,251
|
)
|
|
|
—
|
|
|
|
(3,264
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
1,279
|
|
|
|
(21,765
|
)
|
|
|
(132
|
)
|
|
|
47
|
|
|
|
(1
|
)
|
|
|
74
|
|
|
|
(326,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average exchange rates applied for the nine-month periods ended September 30, 2017 and 2016 and the
exchange rates at September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won)
|
|
Average rate
|
|
|
Reporting date spot rate
|
|
|
|
|
2017
|
|
|
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
USD
|
|
W
|
1,138.67
|
|
|
|
1,161.32
|
|
|
W
|
1,146.70
|
|
|
|
1,208.50
|
|
|
JPY
|
|
|
10.18
|
|
|
|
10.70
|
|
|
|
10.20
|
|
|
|
10.37
|
|
|
CNY
|
|
|
167.49
|
|
|
|
176.22
|
|
|
|
172.35
|
|
|
|
173.26
|
|
|
TWD
|
|
|
37.28
|
|
|
|
35.83
|
|
|
|
37.74
|
|
|
|
37.41
|
|
|
EUR
|
|
|
1,267.31
|
|
|
|
1,296.67
|
|
|
|
1,350.87
|
|
|
|
1,267.60
|
|
|
PLN
|
|
|
297.15
|
|
|
|
297.66
|
|
|
|
312.96
|
|
|
|
287.62
|
|
|
VND
|
|
|
0.0501
|
|
|
|
0.0520
|
|
|
|
0.0505
|
|
|
|
0.0531
|
|
67
|
25.
|
Financial Risk Management, Continued
|
ii) Sensitivity
analysis
A weaker won, as indicated below, against the following currencies which comprise the Group’s assets or liabilities
denominated in foreign currency as of September 30, 2017 and December 31, 2016, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that
the Group considers to be reasonably possible as of the end of reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
|
|
Equity
|
|
|
Profit
or loss
|
|
|
Equity
|
|
|
Profit
or loss
|
|
|
USD (5 percent weakening)
|
|
W
|
54,056
|
|
|
|
95,747
|
|
|
|
57,111
|
|
|
|
63,337
|
|
|
JPY (5 percent weakening)
|
|
|
(9,676
|
)
|
|
|
(9,056
|
)
|
|
|
(8,972
|
)
|
|
|
(7,237
|
)
|
|
CNY (5 percent weakening)
|
|
|
(1,328
|
)
|
|
|
(2,919
|
)
|
|
|
(3,410
|
)
|
|
|
7,077
|
|
|
TWD (5 percent weakening)
|
|
|
74
|
|
|
|
1
|
|
|
|
88
|
|
|
|
—
|
|
|
EUR (5 percent weakening)
|
|
|
7
|
|
|
|
581
|
|
|
|
(40
|
)
|
|
|
(79
|
)
|
|
PLN (5 percent weakening)
|
|
|
2,354
|
|
|
|
(188
|
)
|
|
|
1,129
|
|
|
|
(167
|
)
|
|
VND (5 percent weakening)
|
|
|
(359
|
)
|
|
|
(359
|
)
|
|
|
(867
|
)
|
|
|
—
|
|
A stronger won against the above currencies as of September 30, 2017 and December 31, 2016 would have
had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
Interest rate risk arises principally from the Group’s debentures and
borrowings. The Group establishes and applies its policy to reduce uncertainty arising from fluctuations in the interest rate and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and
establishing plan for countermeasures.
The interest rate profile of the Group’s interest-bearing financial
instruments as of September 30, 2017 and December 31, 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Fixed rate instruments
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
W
|
3,302,209
|
|
|
|
2,722,600
|
|
|
Financial liabilities
|
|
|
(2,723,141
|
)
|
|
|
(2,203,378
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
579,068
|
|
|
|
519,222
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
W
|
(2,661,161
|
)
|
|
|
(2,575,392
|
)
|
68
|
25.
|
Financial Risk Management, Continued
|
ii) Equity and profit or
loss sensitivity analysis for variable rate instruments
As of September 30, 2017 and December 31, 2016, a change of 100
basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for each 12-month period following the reporting dates. This analysis assumes that all other variables, in
particular foreign currency rates, remain constant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Equity
|
|
|
Profit or loss
|
|
|
|
|
1%p
increase
|
|
|
1%p
decrease
|
|
|
1%p
increase
|
|
|
1%p
decrease
|
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(17,519
|
)
|
|
|
17,519
|
|
|
|
(17,519
|
)
|
|
|
17,519
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(16,868
|
)
|
|
|
16,868
|
|
|
|
(16,868
|
)
|
|
|
16,868
|
|
|
(*)
|
Financial instruments subject to interest rate swap not qualified for hedging are excluded.
|
69
|
25.
|
Financial Risk Management, Continued
|
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers.
The Group’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each
customer. However, management believes that the demographics of the Group’s customer base, including the default risk of the country in which customers operate, do not have a significant influence on credit risk since the majority of the
customers are global electronic appliance manufacturers operating in global markets.
The Group establishes credit limits for each customer
and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.
The Group does not establish allowances for receivables under insurance or receivables from customers with a high credit rating. For the rest
of the receivables, the Group establishes an allowance for impairment of trade and other receivables that have been individually or collectively evaluated for impairment and estimated on the basis of historical loss experience for assets.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of September 30,
2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Cash and cash equivalents
|
|
W
|
1,974,036
|
|
|
|
1,558,696
|
|
|
Deposits in banks
|
|
|
1,328,021
|
|
|
|
1,163,763
|
|
|
Trade accounts and notes receivable, net
|
|
|
4,847,867
|
|
|
|
4,957,993
|
|
|
Non-trade receivable, net
|
|
|
75,007
|
|
|
|
134,161
|
|
|
Accrued income
|
|
|
12,409
|
|
|
|
9,431
|
|
|
Available-for-sale financial assets
|
|
|
162
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Deposits
|
|
|
31,850
|
|
|
|
47,954
|
|
|
Short-term loans
|
|
|
18,469
|
|
|
|
7,696
|
|
|
Long-term loans
|
|
|
19,653
|
|
|
|
34,760
|
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
2,619
|
|
|
Derivatives
|
|
|
442
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,318,036
|
|
|
|
7,918,853
|
|
|
|
|
|
|
|
|
|
|
|
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises primarily from the sales and investing activities. Trade accounts and notes receivables are insured in order to manage credit risk and uninsured trade accounts and notes receivables are managed
in accordance with the Group’s management policy.
70
|
25.
|
Financial Risk Management, Continued
|
Liquidity risk is the risk that the Group will encounter difficulty in meeting
the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the
extent that the Group does not generate sufficient cash flows from operations to meet its capital requirements, the Group may rely on other financing activities, such as external long-term borrowings and offerings of debt securities, equity-linked
and other debt securities. In addition, the Group maintains a line of credit with various banks
The following are the contractual
maturities of financial liabilities, including estimated interest payments, as of September 30, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Contractual cash flows
|
|
|
|
|
Carrying
amount
|
|
|
Total
|
|
|
6 months
or less
|
|
|
6-12
months
|
|
|
1-2 years
|
|
|
2-5 years
|
|
|
More than
5 years
|
|
|
Non-derivative financial liabilities :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loan
|
|
W
|
681,622
|
|
|
|
706,537
|
|
|
|
12,587
|
|
|
|
303,354
|
|
|
|
390,596
|
|
|
|
—
|
|
|
|
—
|
|
|
Unsecured bank loans
|
|
|
2,701,611
|
|
|
|
2,845,359
|
|
|
|
32,039
|
|
|
|
376,263
|
|
|
|
1,342,509
|
|
|
|
1,010,033
|
|
|
|
84,515
|
|
|
Unsecured bond issues
|
|
|
2,001,069
|
|
|
|
2,107,701
|
|
|
|
393,385
|
|
|
|
228,231
|
|
|
|
404,470
|
|
|
|
1,081,615
|
|
|
|
—
|
|
|
Trade accounts and notes payable
|
|
|
2,962,856
|
|
|
|
2,962,856
|
|
|
|
2,962,856
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other accounts payable
|
|
|
2,621,112
|
|
|
|
2,621,483
|
|
|
|
2,620,041
|
|
|
|
1,442
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Long-term other accounts payable
|
|
|
159
|
|
|
|
159
|
|
|
|
—
|
|
|
|
—
|
|
|
|
159
|
|
|
|
—
|
|
|
|
—
|
|
|
Derivative financial liabilities
|
|
|
79
|
|
|
|
78
|
|
|
|
166
|
|
|
|
(88
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,968,508
|
|
|
|
11,244,173
|
|
|
|
6,021,074
|
|
|
|
909,202
|
|
|
|
2,137,734
|
|
|
|
2,091,648
|
|
|
|
84,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or
at significantly different amounts.
71
|
25.
|
Financial Risk Management, Continued
|
Management’s policy is to maintain a capital base so as to maintain
investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure.
Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Total liabilities
|
|
W
|
13,623,617
|
|
|
|
11,421,948
|
|
|
Total equity
|
|
|
15,168,112
|
|
|
|
13,462,388
|
|
|
Cash and deposits in banks (*1)
|
|
|
3,302,046
|
|
|
|
2,722,446
|
|
|
Borrowings (including bonds)
|
|
|
5,384,302
|
|
|
|
4,778,770
|
|
|
Total liabilities to equity ratio
|
|
|
90
|
%
|
|
|
85
|
%
|
|
Net borrowings to equity ratio (*2)
|
|
|
14
|
%
|
|
|
15
|
%
|
|
(*1)
|
Cash and deposits in banks consist of cash and cash equivalents and current deposit in banks.
|
|
(*2)
|
Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds) less cash and current deposits in banks by total equity.
|
72
|
25.
|
Financial Risk Management, Continued
|
|
|
(e)
|
Determination of fair value
|
|
|
(i)
|
Measurement of fair value
|
A number of the Group’s accounting policies and disclosures
require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information
about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
|
|
i)
|
Current Assets and Liabilities
|
The carrying amounts approximate fair value
because of the short maturity of these instruments.
|
|
ii)
|
Trade Receivables and Other Receivables
|
The fair value of trade and other receivables is
estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. The carrying amounts of short-term receivables approximate fair value.
|
|
iii)
|
Investments in Equity and Debt Securities
|
The fair value of marketable available-for-sale
financial assets is determined by reference to their quoted closing bid price at the reporting date. The fair value of non-marketable securities is determined using valuation methods.
|
|
iv)
|
Non-derivative Financial Liabilities
|
Fair value, which is determined for disclosure purposes,
except for the liabilities at FVTPL, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
73
|
25.
|
Financial Risk Management, Continued
|
|
|
(ii)
|
Fair values versus carrying amounts
|
The fair values of financial assets and liabilities,
together with the carrying amounts shown in the condensed consolidated interim statements of financial position, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
|
|
Carrying
amounts
|
|
|
Fair values
|
|
|
Carrying
amounts
|
|
|
Fair values
|
|
|
Assets carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
162
|
|
|
|
162
|
|
|
|
154
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
1,382
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
442
|
|
|
|
442
|
|
|
|
244
|
|
|
|
244
|
|
|
Assets carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
W
|
1,974,036
|
|
|
|
(*
|
)
|
|
|
1,558,696
|
|
|
|
(*
|
)
|
|
Deposits in banks
|
|
|
1,328,021
|
|
|
|
(*
|
)
|
|
|
1,163,763
|
|
|
|
(*
|
)
|
|
Trade accounts and notes receivable
|
|
|
4,847,867
|
|
|
|
(*
|
)
|
|
|
4,957,993
|
|
|
|
(*
|
)
|
|
Non-trade receivable
|
|
|
75,007
|
|
|
|
(*
|
)
|
|
|
134,161
|
|
|
|
(*
|
)
|
|
Accrued income
|
|
|
12,409
|
|
|
|
(*
|
)
|
|
|
9,431
|
|
|
|
(*
|
)
|
|
Deposits
|
|
|
31,850
|
|
|
|
(*
|
)
|
|
|
47,954
|
|
|
|
(*
|
)
|
|
Short-term loans
|
|
|
18,469
|
|
|
|
(*
|
)
|
|
|
7,696
|
|
|
|
(*
|
)
|
|
Long-term loans
|
|
|
19,653
|
|
|
|
(*
|
)
|
|
|
34,760
|
|
|
|
(*
|
)
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
(*
|
)
|
|
|
2,619
|
|
|
|
(*
|
)
|
|
Liabilities carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
W
|
79
|
|
|
|
79
|
|
|
|
472
|
|
|
|
472
|
|
|
Liabilities carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
681,622
|
|
|
|
681,622
|
|
|
|
700,820
|
|
|
|
700,820
|
|
|
Unsecured bank loans
|
|
|
2,701,611
|
|
|
|
2,708,187
|
|
|
|
2,197,132
|
|
|
|
2,200,522
|
|
|
Unsecured bond issues
|
|
|
2,001,069
|
|
|
|
2,014,187
|
|
|
|
1,880,818
|
|
|
|
1,903,863
|
|
|
Trade accounts and notes payable
|
|
|
2,962,856
|
|
|
|
(*
|
)
|
|
|
2,877,326
|
|
|
|
(*
|
)
|
|
Other accounts payable
|
|
|
2,621,112
|
|
|
|
2,621,461
|
|
|
|
2,449,517
|
|
|
|
2,449,938
|
|
|
Long-term other accounts payable
|
|
|
159
|
|
|
|
156
|
|
|
|
3,530
|
|
|
|
3,891
|
|
|
(*)
|
Excluded from disclosures as the carrying amount approximates fair value.
|
The basis for
determining fair values above by the Group are consistent with those disclosed in the financial statements as of and for the year ended December 31, 2016.
74
|
25.
|
Financial Risk Management, Continued
|
|
|
(iii)
|
Financial Instruments measured at cost
|
Available-for-sale financial assets measured at cost as
of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Intellectual Discovery Co., Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
|
Kyulux, Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
|
Henghao Technology Co., Ltd.
|
|
|
1,559
|
|
|
|
1,559
|
|
|
ARCH Venture Fund VIII, L.P
|
|
|
2,360
|
|
|
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,616
|
|
|
|
7,839
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale-financial assets consist of investments in equity securities and the fair value of some
investments in equity securities are measured at cost because the range of reasonable fair value measurements is significant and the probabilities of the various estimates cannot be reasonably assessed since there is not a quoted price in an active
market for an identical instrument.
75
|
25.
|
Financial Risk Management, Continued
|
|
|
(iv)
|
Fair values of financial assets and liabilities
|
The table below analyzes financial instruments carried at fair value
based on the input variables used in the valuation method to measure fair value of assets and liabilities. The different levels have been defined as follows:
|
|
•
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
|
|
|
•
|
|
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
|
|
|
•
|
|
Level 3: inputs for the asset or liability that are not based on observable market data
|
|
|
ii)
|
Financial instruments measured at fair value
|
Fair value hierarchy classifications of the
financial instruments that are measured at fair value as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
162
|
|
|
|
—
|
|
|
|
—
|
|
|
|
162
|
|
|
Financial assets at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
442
|
|
|
|
442
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
79
|
|
|
|
79
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
154
|
|
|
|
—
|
|
|
|
—
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
244
|
|
|
|
244
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
472
|
|
|
|
472
|
|
76
|
25.
|
Financial Risk Management, Continued
|
|
|
iii)
|
Financial instruments not measured at fair value but for which the fair value is disclosed
|
Fair value hierarchy classifications, valuation technique and inputs for fair value measurements of the financial instruments not measured at
fair value but for which the fair value is disclosed as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
Valuation
technique
|
|
|
Input
|
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
—
|
|
|
|
—
|
|
|
|
681,622
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bank loans
|
|
|
—
|
|
|
|
—
|
|
|
|
2,708,187
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bond issues
|
|
|
—
|
|
|
|
—
|
|
|
|
2,014,187
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
2,621,461
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Long-term other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
156
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
Valuation
technique
|
|
|
Input
|
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
—
|
|
|
|
—
|
|
|
|
700,820
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bank loans
|
|
|
—
|
|
|
|
—
|
|
|
|
2,200,522
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bond issues
|
|
|
—
|
|
|
|
—
|
|
|
|
1,903,863
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
2,449,938
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Long-term other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
3,891
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
|
iv)
|
The interest rates applied for determination of the above fair value as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
Debentures, loans and others
|
|
1.27~2.73%
|
|
1.48~2.68%
|
77
|
26.
|
Changes in liabilities arising from financing activities
|
Changes in liabilities arising
from financing activities for the period ended September 30, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
Non-cash transactions
|
|
|
|
|
|
|
|
January 1, 2017
|
|
|
Cash flows from
financing activities
|
|
|
Reclassification
|
|
|
Gain or loss on
foreign currency
translation
|
|
|
Effective interest
adjustment
|
|
|
September 30,
2017
|
|
|
Short-term borrowings
|
|
W
|
113,209
|
|
|
|
(113,209
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Current portion of long-term debt
|
|
|
554,700
|
|
|
|
(364,774
|
)
|
|
|
1,051,679
|
|
|
|
(23,214
|
)
|
|
|
458
|
|
|
|
1,218,849
|
|
|
Long-term borrowings
|
|
|
2,599,799
|
|
|
|
847,702
|
|
|
|
(662,171
|
)
|
|
|
(41,223
|
)
|
|
|
—
|
|
|
|
2,744,107
|
|
|
Bonds
|
|
|
1,511,062
|
|
|
|
298,780
|
|
|
|
(389,508
|
)
|
|
|
—
|
|
|
|
1,012
|
|
|
|
1,421,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,778,770
|
|
|
|
668,499
|
|
|
|
—
|
|
|
|
(64,437
|
)
|
|
|
1,470
|
|
|
|
5,384,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
|
27.
|
Related Parties and Others
|
Related parties as of September 30, 2017 are as follows:
|
|
|
|
|
Classification
|
|
Description
|
|
Associates(*)
|
|
Paju Electric Glass Co., Ltd. and others
|
|
Subsidiaries of Associates
|
|
AVATEC Electronics Yantai Co., Ltd. and others
|
|
Entity that has significant influence over the Controlling Company
|
|
LG Electronics Inc.
|
|
Subsidiaries of the entity that has significant influence over the Controlling Company
|
|
Subsidiaries of LG Electronics Inc.
|
|
(*)
|
Details of associates are described in note 8.
|
Related parties other than associates that have
transactions such as sales or balance of trade accounts and notes receivable and payable with the Group as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
Classification
|
|
September 30, 2017
|
|
December 31, 2016
|
|
Subsidiaries of
|
|
Shinbo Electric Co., Ltd.
|
|
Shinbo Electric Co., Ltd.
|
|
Associates
|
|
—
|
|
New Optics USA, Inc.
|
|
|
|
—
|
|
NEWOPTIX RS. SA DE CV.
|
|
Entity that has significant influence over the Controlling Company
|
|
LG Electronics Inc.
|
|
LG Electronics Inc.
|
|
|
|
Hiplaza Co., Ltd.
|
|
Hiplaza Co., Ltd.
|
|
Subsidiaries of the
|
|
Hi Entech Co., Ltd.
|
|
Hi Entech Co., Ltd.
|
|
entity that has
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
significant influence
|
|
LG Innotek Co., Ltd.
|
|
LG Innotek Co., Ltd.
|
|
over the Controlling
|
|
Hanuri Co., Ltd.
|
|
Hanuri Co., Ltd.
|
|
Company
|
|
Hi M Solutek
|
|
Hi M Solutek
|
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
|
Hientech (Tianjin) Co., Ltd.
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
|
P.T. LG Electronics Indonesia
|
|
P.T. LG Electronics Indonesia
|
|
|
|
—
|
|
LG Innotek Yantai Co., Ltd.
|
|
|
|
LG Electronics Wroclaw Sp. z o.o.
|
|
LG Electronics Wroclaw Sp. z o.o.
|
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
|
—
|
|
LG Electronics Thailand Co., Ltd.
|
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
|
—
|
|
LG Electronics Shenyang Inc.
|
|
|
|
LG Electronics RUS, LLC
|
|
LG Electronics RUS, LLC
|
79
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
Classification
|
|
September 30, 2017
|
|
December 31, 2016
|
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
LG Electronics India Pvt. Ltd.
|
|
|
|
LG Electronics do Brasil Ltda.
|
|
LG Electronics do Brasil Ltda.
|
|
|
|
LG Electronics Air-Conditioning (Shandong) Co., Ltd.
|
|
LG Electronics Air-Conditioning (Shandong) Co., Ltd.
|
|
|
|
LG Electronics Almaty Kazakhstan
|
|
LG Electronics Almaty Kazakhstan
|
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
|
LG Electronics Singapore PTE LTD.
|
|
LG Electronics Singapore PTE LTD.
|
|
|
|
LG Electronics Japan, Inc.
|
|
LG Electronics Japan, Inc.
|
|
|
|
LG Electronics U.S.A., Inc.
|
|
LG Electronics U.S.A., Inc.
|
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
|
LG Electronics Deutschland GmbH
|
|
LG Electronics Deutschland GmbH
|
|
|
|
LG Electronics Egypt S.A.E.
|
|
LG Electronics Egypt S.A.E.
|
|
|
|
LG Electronics Alabama Inc.
|
|
LG Electronics Alabama Inc.
|
|
|
|
LG Electronics (China) Co., Ltd.
|
|
—
|
|
|
|
LG Electronics Ticaret A.S.
|
|
—
|
|
|
|
PT.LG Electronics Service Indonesia
|
|
—
|
|
|
|
LG Electronics Polska SP.ZO.O
|
|
—
|
|
|
|
LG Japan Lab. Inc.
|
|
—
|
80
|
27.
|
Related Parties and Others, Continued
|
|
|
(b)
|
Significant transactions such as sales of goods and purchases of raw material and outsourcing service and others, which occurred in the normal course of business with related parties for the three-month and nine-month
periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Sales and
others
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVENIA Co., Ltd.
|
|
W
|
—
|
|
|
|
—
|
|
|
|
691
|
|
|
|
2,188
|
|
|
|
—
|
|
|
|
24
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,685
|
|
|
|
40
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
94,966
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,025
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
1,141
|
|
|
|
20,059
|
|
|
|
—
|
|
|
|
650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
—
|
|
|
|
—
|
|
|
|
96,798
|
|
|
|
22,247
|
|
|
|
24,685
|
|
|
|
1,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
325,287
|
|
|
|
—
|
|
|
|
12,627
|
|
|
|
176,092
|
|
|
|
—
|
|
|
|
26,041
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
25,127
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
50,073
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29
|
|
81
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
W
|
82,025
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
|
—
|
|
|
|
19
|
|
|
LG Electronics RUS, LLC
|
|
|
27,693
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
279
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
54,085
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
131
|
|
|
LG Innotek Co., Ltd.
|
|
|
4,406
|
|
|
|
—
|
|
|
|
52,007
|
|
|
|
—
|
|
|
|
—
|
|
|
|
470
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
22,170
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
53,016
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
|
99,798
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
106
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
131,698
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
358
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
3,134
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
75
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
78,854
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
344,094
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
551
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
3,363
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,261
|
|
|
|
—
|
|
|
|
7,320
|
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,432
|
|
|
|
—
|
|
|
|
2,276
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
2,227
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
LG Electronics Air-Conditioning (Shandong) Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
24
|
|
|
|
—
|
|
|
|
121
|
|
|
Hi M Solutek
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
413
|
|
|
Others
|
|
|
840
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
|
—
|
|
|
|
1,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
903,749
|
|
|
|
—
|
|
|
|
52,010
|
|
|
|
86,632
|
|
|
|
—
|
|
|
|
13,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,229,036
|
|
|
|
—
|
|
|
|
161,435
|
|
|
|
284,971
|
|
|
|
24,685
|
|
|
|
41,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.(*)
|
|
W
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
6
|
|
|
INVENIA Co., Ltd.
|
|
|
10
|
|
|
|
—
|
|
|
|
1,304
|
|
|
|
49,576
|
|
|
|
—
|
|
|
|
175
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
530
|
|
|
|
—
|
|
|
|
—
|
|
|
|
65,899
|
|
|
|
538
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
8,109
|
|
|
|
289,760
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,218
|
|
|
Shinbo Electric Co., Ltd.(*)
|
|
|
15,812
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21
|
|
|
Narenanotech Corporation(*)
|
|
|
—
|
|
|
|
—
|
|
|
|
279
|
|
|
|
21,727
|
|
|
|
—
|
|
|
|
244
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
110
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
2,871
|
|
|
|
64,337
|
|
|
|
—
|
|
|
|
2,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,823
|
|
|
|
8,639
|
|
|
|
294,214
|
|
|
|
135,640
|
|
|
|
65,903
|
|
|
|
6,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,179,201
|
|
|
|
—
|
|
|
|
28,583
|
|
|
|
672,789
|
|
|
|
—
|
|
|
|
86,303
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
63,346
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
75
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
149,796
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,799
|
|
|
|
—
|
|
|
|
167
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
231,352
|
|
|
|
—
|
|
|
|
—
|
|
|
|
89
|
|
|
|
—
|
|
|
|
390
|
|
83
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
LG Electronics RUS, LLC
|
|
W
|
71,976
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
730
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
174,348
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
364
|
|
|
LG Innotek Co., Ltd.
|
|
|
10,919
|
|
|
|
—
|
|
|
|
147,955
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,445
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
56,855
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
175,352
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
|
263,418
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
175
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
624,133
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
798
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
10,187
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
114
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
156,163
|
|
|
|
—
|
|
|
|
1,531
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
938,543
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,391
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
10,642
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,061
|
|
|
|
—
|
|
|
|
26,146
|
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,509
|
|
|
|
—
|
|
|
|
12,735
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
11,760
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
LG Electronics Air-Conditioning (Shandong) Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
254
|
|
|
|
3,700
|
|
|
|
—
|
|
|
|
1,207
|
|
|
Hi M Solutek
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,943
|
|
|
Others
|
|
|
866
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
|
—
|
|
|
|
3,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,793,493
|
|
|
|
—
|
|
|
|
148,212
|
|
|
|
183,335
|
|
|
|
—
|
|
|
|
55,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,988,517
|
|
|
|
8,639
|
|
|
|
471,009
|
|
|
|
991,764
|
|
|
|
65,903
|
|
|
|
148,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents transactions occurred prior to disposal of the entire investments.
|
84
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Joint Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suzhou Raken Technology Co., Ltd.(*1)
|
|
W
|
2
|
|
|
|
1,378
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.
|
|
W
|
287
|
|
|
|
—
|
|
|
|
11,441
|
|
|
|
—
|
|
|
|
1,795
|
|
|
|
80
|
|
|
New Optics USA, Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
NEWOPTIX RS. SA DE CV
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
INVENIA Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
1,011
|
|
|
|
5,497
|
|
|
|
—
|
|
|
|
316
|
|
|
TLI Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
17,358
|
|
|
|
—
|
|
|
|
—
|
|
|
|
547
|
|
|
AVACO Co., Ltd.(*2)
|
|
|
423
|
|
|
|
—
|
|
|
|
20
|
|
|
|
38
|
|
|
|
—
|
|
|
|
6
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,187
|
|
|
|
309
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
123,396
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,015
|
|
|
LB Gemini New Growth Fund No. 16
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Shinbo Electric Co., Ltd.
|
|
|
7,181
|
|
|
|
—
|
|
|
|
86,221
|
|
|
|
—
|
|
|
|
792
|
|
|
|
125
|
|
|
Narenanotech Corporation
|
|
|
—
|
|
|
|
—
|
|
|
|
132
|
|
|
|
2,217
|
|
|
|
—
|
|
|
|
155
|
|
|
ADP System Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
491
|
|
|
|
43,486
|
|
|
|
—
|
|
|
|
645
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,897
|
|
|
|
—
|
|
|
|
240,070
|
|
|
|
51,241
|
|
|
|
19,781
|
|
|
|
3,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85
|
27.
|
Related Parties, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
371,184
|
|
|
|
—
|
|
|
|
5,378
|
|
|
|
182,006
|
|
|
|
—
|
|
|
|
11,791
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
23,570
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
40,332
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
67,600
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
380
|
|
|
LG Electronics RUS, LLC
|
|
|
30,986
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
403
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
35,789
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
164
|
|
|
LG Innotek Co., Ltd.
|
|
|
3,913
|
|
|
|
—
|
|
|
|
41,905
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,456
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
7,494
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
90,083
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Mexicali, S.A. DE C.V
|
|
|
65,696
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
45
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
165,932
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
172
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
2,896
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
|
LG Electronics Wroclaw Sp. Z o.o
|
|
|
17,002
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
301
|
|
|
|
—
|
|
|
|
—
|
|
|
|
66,610
|
|
|
|
—
|
|
|
|
—
|
|
86
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
W
|
304,238
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
547
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,402
|
|
|
Hientech (Tianjin) Co., LTD
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,756
|
|
|
LG Electronics Air-Conditioning
(Shandong) Co., Ltd.
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
5,124
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
7,372
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
Others
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
868,331
|
|
|
|
—
|
|
|
|
41,905
|
|
|
|
66,610
|
|
|
|
—
|
|
|
|
25,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,247,414
|
|
|
|
1,378
|
|
|
|
287,353
|
|
|
|
299,857
|
|
|
|
19,781
|
|
|
|
40,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Represents transactions occurred prior to exchange of equity interests.
|
|
(*2)
|
Represents transactions occurred prior to disposal of the entire investments.
|
87
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
Joint Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suzhou Raken Technology Co., Ltd.(*1)
|
|
W
|
59,388
|
|
|
|
31,280
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
543
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.
|
|
W
|
287
|
|
|
|
—
|
|
|
|
39,463
|
|
|
|
—
|
|
|
|
5,650
|
|
|
|
167
|
|
|
New Optics USA, Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
509
|
|
|
|
—
|
|
|
NEWOPTIX RS. SA DE CV
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
INVENIA Co., Ltd.
|
|
|
44
|
|
|
|
—
|
|
|
|
1,317
|
|
|
|
39,931
|
|
|
|
—
|
|
|
|
965
|
|
|
TLI Inc.
|
|
|
—
|
|
|
|
101
|
|
|
|
51,565
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,138
|
|
|
AVACO Co., Ltd.(*2)
|
|
|
—
|
|
|
|
128
|
|
|
|
703
|
|
|
|
31,575
|
|
|
|
—
|
|
|
|
1,357
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
265
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,410
|
|
|
|
948
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
21,030
|
|
|
|
345,034
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,466
|
|
|
LB Gemini New Growth Fund No. 16
|
|
|
—
|
|
|
|
7,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Shinbo Electric Co., Ltd.
|
|
|
33,256
|
|
|
|
—
|
|
|
|
265,089
|
|
|
|
—
|
|
|
|
2,059
|
|
|
|
166
|
|
|
Narenanotech Corporation
|
|
|
17
|
|
|
|
—
|
|
|
|
369
|
|
|
|
18,211
|
|
|
|
—
|
|
|
|
692
|
|
|
ADP System Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
44
|
|
|
|
—
|
|
|
|
1,316
|
|
|
|
68,492
|
|
|
|
—
|
|
|
|
1,184
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
33,665
|
|
|
|
29,122
|
|
|
|
704,856
|
|
|
|
158,226
|
|
|
|
58,628
|
|
|
|
10,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,235,505
|
|
|
|
—
|
|
|
|
15,629
|
|
|
|
423,975
|
|
|
|
—
|
|
|
|
46,978
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
64,132
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
107,118
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
158,492
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,450
|
|
|
LG Electronics RUS, LLC
|
|
|
70,930
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,714
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
96,660
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,185
|
|
|
LG Innotek Co., Ltd.
|
|
|
8,484
|
|
|
|
—
|
|
|
|
149,914
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22,408
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
39,215
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
302,225
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Mexicali, S.A. DE C.V
|
|
|
160,996
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
45
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
381,700
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
431
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
7,154
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20
|
|
|
LG Electronics Wroclaw Sp. Z o.o
|
|
|
249,846
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
92,939
|
|
|
|
—
|
|
|
|
3,677
|
|
89
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
W
|
776,157
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,295
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,954
|
|
|
Hientech (Tianjin) Co., LTD
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,639
|
|
|
LG Electronics Air-Conditioning (Shandong) Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,107
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
11,438
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
15,142
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24
|
|
|
Others
|
|
|
2,312
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,452,001
|
|
|
|
—
|
|
|
|
149,914
|
|
|
|
92,939
|
|
|
|
—
|
|
|
|
85,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,780,559
|
|
|
|
60,402
|
|
|
|
870,399
|
|
|
|
675,140
|
|
|
|
58,628
|
|
|
|
143,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Represents transactions occurred prior to exchange of equity interests.
|
|
(*2)
|
Represents transactions occurred prior to disposal of the entire investments.
|
90
|
27.
|
Related Parties and Others, Continued
|
|
|
(c)
|
Trade accounts and notes receivable and payable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Trade accounts and notes
receivable and others
|
|
|
Trade accounts and notes
payable and others
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.(*)
|
|
W
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
8,616
|
|
|
INVENIA Co., Ltd.
|
|
|
500
|
|
|
|
833
|
|
|
|
6,307
|
|
|
|
6,515
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
3,704
|
|
|
|
5,190
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
66,396
|
|
|
|
71,685
|
|
|
Shinbo Electric Co., Ltd.(*)
|
|
|
—
|
|
|
|
85,011
|
|
|
|
—
|
|
|
|
64,693
|
|
|
Narenanotech Corporation(*)
|
|
|
—
|
|
|
|
300
|
|
|
|
—
|
|
|
|
2,826
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
500
|
|
|
|
833
|
|
|
|
23,344
|
|
|
|
3,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,000
|
|
|
|
87,977
|
|
|
|
99,764
|
|
|
|
163,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
348,782
|
|
|
|
357,577
|
|
|
|
173,655
|
|
|
|
160,309
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
15,637
|
|
|
|
4,651
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
32,799
|
|
|
|
35,121
|
|
|
|
484
|
|
|
|
7
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
62,224
|
|
|
|
51,794
|
|
|
|
247
|
|
|
|
78
|
|
|
LG Electronics RUS, LLC
|
|
|
26,635
|
|
|
|
47,686
|
|
|
|
45
|
|
|
|
—
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
34,702
|
|
|
|
14,299
|
|
|
|
2
|
|
|
|
27
|
|
91
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Trade accounts and notes
receivable and others
|
|
|
Trade accounts and notes
payable and others
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
LG Innotek Co., Ltd.
|
|
W
|
1,456
|
|
|
|
1,070
|
|
|
|
52,684
|
|
|
|
50,919
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
16,083
|
|
|
|
7,007
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
56,090
|
|
|
|
72,963
|
|
|
|
—
|
|
|
|
5
|
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
|
56,106
|
|
|
|
11,959
|
|
|
|
94
|
|
|
|
13
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
95,904
|
|
|
|
222,480
|
|
|
|
3
|
|
|
|
27
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
96,614
|
|
|
|
108,119
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
244,804
|
|
|
|
93,873
|
|
|
|
264
|
|
|
|
259
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
4,164
|
|
|
|
4,080
|
|
|
Hientech (Tianjin) Co., LTD
|
|
|
—
|
|
|
|
—
|
|
|
|
5,191
|
|
|
|
3,746
|
|
|
Others
|
|
|
6,650
|
|
|
|
42,084
|
|
|
|
3,340
|
|
|
|
2,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
649,090
|
|
|
|
604,987
|
|
|
|
163,132
|
|
|
|
170,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
998,872
|
|
|
|
1,050,541
|
|
|
|
436,551
|
|
|
|
493,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Excluded from related parties due to disposal of equity investments during the nine-month period ended September 30, 2017.
|
92
|
27.
|
Related Parties and Others, Continued
|
|
|
(d)
|
Details of significant cash transactions such as loans and collection of loans, which occurred in the normal course of business with related parties for the nine-month periods ended September 30, 2017 and 2016 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Associates
|
|
Loans
|
|
|
Collection
of loans
|
|
|
Loans
|
|
|
Collection
of loans
|
|
|
INVENIA Co., Ltd.
|
|
W
|
—
|
|
|
|
333
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
333
|
|
|
|
—
|
|
|
|
—
|
|
|
New Optics Ltd.(*)
|
|
W
|
—
|
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
—
|
|
|
|
666
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Excluded from related parties due to disposal of equity investments during the nine-month period ended September 30, 2017.
|
93
|
27.
|
Related Parties and Others, Continued
|
|
|
(e)
|
Conglomerate Transactions
|
Transactions, trade accounts and notes receivable and payable, and
others between the Group and certain companies and their subsidiaries, which are included in LG Group, one of conglomerates according to the Monopoly Regulation and Fair Trade Act for the three-month and nine-month periods ended September 30,
2017 and 2016 and as of September 30, 2017 and December 31, 2016 are as follows. These entities are not affiliates according to K-IFRS No. 1024,
Related Party Disclosures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the three-month
period ended September 30, 2017
|
|
|
For the nine-month
period ended September 30, 2017
|
|
|
September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Purchase and
others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable
and others
|
|
|
LG Chem Ltd.
|
|
W
|
8,243
|
|
|
|
240,357
|
|
|
|
8,243
|
|
|
|
681,537
|
|
|
|
6,090
|
|
|
|
125,775
|
|
|
LG Chem (Nanjing) Information & Electronics Materials Co., Ltd.
|
|
|
—
|
|
|
|
103,543
|
|
|
|
—
|
|
|
|
309,011
|
|
|
|
—
|
|
|
|
74,659
|
|
|
LG Chem (China) Investment Co., Ltd.
|
|
|
—
|
|
|
|
1,559
|
|
|
|
—
|
|
|
|
4,850
|
|
|
|
—
|
|
|
|
1,236
|
|
|
Serveone Co., Ltd.
|
|
|
97
|
|
|
|
403,278
|
|
|
|
346
|
|
|
|
1,048,259
|
|
|
|
21,758
|
|
|
|
430,661
|
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
32,782
|
|
|
|
—
|
|
|
|
88,602
|
|
|
|
—
|
|
|
|
51,311
|
|
|
Serveone Construction (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
21,739
|
|
|
|
—
|
|
|
|
61,608
|
|
|
|
—
|
|
|
|
21,135
|
|
|
Serveone Guangzhou Co., Ltd.
|
|
|
—
|
|
|
|
26,822
|
|
|
|
—
|
|
|
|
70,957
|
|
|
|
—
|
|
|
|
27,487
|
|
|
Serveone Vietnam Co., Ltd.
|
|
|
—
|
|
|
|
9,023
|
|
|
|
—
|
|
|
|
15,098
|
|
|
|
—
|
|
|
|
8,967
|
|
|
Silicon Works Co., Ltd.
|
|
|
—
|
|
|
|
163,019
|
|
|
|
—
|
|
|
|
448,486
|
|
|
|
—
|
|
|
|
120,765
|
|
|
LG CNS Co., Ltd.
|
|
|
184
|
|
|
|
60,885
|
|
|
|
323
|
|
|
|
126,323
|
|
|
|
—
|
|
|
|
52,779
|
|
|
LG CNS China Inc.
|
|
|
—
|
|
|
|
8,892
|
|
|
|
—
|
|
|
|
19,958
|
|
|
|
—
|
|
|
|
5,561
|
|
|
LG N-Sys Inc.
|
|
|
—
|
|
|
|
3,315
|
|
|
|
—
|
|
|
|
10,145
|
|
|
|
—
|
|
|
|
5,553
|
|
|
LG International Corp.
|
|
|
4,637
|
|
|
|
29,252
|
|
|
|
13,878
|
|
|
|
81,044
|
|
|
|
8,632
|
|
|
|
24,359
|
|
94
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the three-month period
ended September 30, 2017
|
|
|
For the nine-month period
ended September 30, 2017
|
|
|
September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
|
LG International (America) Inc.
|
|
W
|
4,839
|
|
|
|
34,035
|
|
|
|
17,104
|
|
|
|
99,733
|
|
|
|
3,883
|
|
|
|
13,659
|
|
|
LG International (Japan) Ltd.
|
|
|
22,808
|
|
|
|
379,659
|
|
|
|
105,637
|
|
|
|
969,387
|
|
|
|
2,344
|
|
|
|
180,001
|
|
|
LG International (Singapore) Pte. Ltd.
|
|
|
153,564
|
|
|
|
669
|
|
|
|
409,688
|
|
|
|
812
|
|
|
|
104,827
|
|
|
|
12
|
|
|
Pantos Logistics Co., Ltd.
|
|
|
10
|
|
|
|
22,625
|
|
|
|
34
|
|
|
|
69,948
|
|
|
|
—
|
|
|
|
15,018
|
|
|
Pantos Logistics (Shenzhen) Co., Ltd.
|
|
|
—
|
|
|
|
18,371
|
|
|
|
—
|
|
|
|
91,833
|
|
|
|
—
|
|
|
|
7,058
|
|
|
LG Corp.
|
|
|
—
|
|
|
|
15,804
|
|
|
|
—
|
|
|
|
46,762
|
|
|
|
4,700
|
|
|
|
7,791
|
|
|
Others
|
|
|
499
|
|
|
|
26,806
|
|
|
|
2,356
|
|
|
|
97,119
|
|
|
|
5,555
|
|
|
|
16,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
194,881
|
|
|
|
1,602,435
|
|
|
|
557,609
|
|
|
|
4,341,472
|
|
|
|
157,789
|
|
|
|
1,189,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the three-month period
ended September 30, 2016
|
|
|
For the nine-month period
ended September 30, 2016
|
|
|
December 31, 2016
|
|
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
|
LG Chem Ltd.
|
|
W
|
22
|
|
|
|
207,137
|
|
|
|
35
|
|
|
|
717,737
|
|
|
|
30
|
|
|
|
106,790
|
|
|
LG Chem (Nanjing) Information & Electronics Materials Co., Ltd.
|
|
|
—
|
|
|
|
100,176
|
|
|
|
—
|
|
|
|
276,072
|
|
|
|
—
|
|
|
|
79,117
|
|
|
LG Chem (China) Investment Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
734
|
|
|
Serveone Co., Ltd.
|
|
|
1,607
|
|
|
|
305,420
|
|
|
|
1,872
|
|
|
|
728,320
|
|
|
|
20,157
|
|
|
|
398,671
|
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
25,913
|
|
|
|
—
|
|
|
|
73,023
|
|
|
|
—
|
|
|
|
47,485
|
|
|
Serveone Construction (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
14,545
|
|
|
|
—
|
|
|
|
38,953
|
|
|
|
—
|
|
|
|
8,951
|
|
|
Serveone Guangzhou Co., Ltd.
|
|
|
—
|
|
|
|
24,048
|
|
|
|
—
|
|
|
|
66,885
|
|
|
|
—
|
|
|
|
19,719
|
|
|
Serveone Vietnam Co., Ltd.
|
|
|
—
|
|
|
|
3,632
|
|
|
|
—
|
|
|
|
3,725
|
|
|
|
—
|
|
|
|
587
|
|
|
Silicon Works Co., Ltd.
|
|
|
—
|
|
|
|
137,143
|
|
|
|
—
|
|
|
|
433,263
|
|
|
|
13
|
|
|
|
106,313
|
|
|
LG CNS Co., Ltd.
|
|
|
—
|
|
|
|
39,682
|
|
|
|
417
|
|
|
|
92,261
|
|
|
|
—
|
|
|
|
89,152
|
|
|
LG CNS China Inc.
|
|
|
—
|
|
|
|
8,631
|
|
|
|
—
|
|
|
|
23,872
|
|
|
|
—
|
|
|
|
8,597
|
|
|
LG N-Sys Inc.
|
|
|
—
|
|
|
|
1,126
|
|
|
|
—
|
|
|
|
5,489
|
|
|
|
—
|
|
|
|
9,259
|
|
|
LG International Corp.
|
|
|
5,388
|
|
|
|
13,825
|
|
|
|
8,262
|
|
|
|
69,730
|
|
|
|
16,951
|
|
|
|
16,930
|
|
|
LG International (America) Inc.
|
|
|
4,608
|
|
|
|
13,189
|
|
|
|
17,472
|
|
|
|
17,435
|
|
|
|
3,594
|
|
|
|
20,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG International (Japan) Ltd.
|
|
|
38,321
|
|
|
|
291,968
|
|
|
|
107,406
|
|
|
|
551,034
|
|
|
|
14,603
|
|
|
|
125,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96
|
27.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the three-month period
ended September 30, 2016
|
|
|
For the nine-month period
ended September 30, 2016
|
|
|
December 31, 2016
|
|
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
|
LG International (Singapore) Pte. Ltd.
|
|
W
|
72,545
|
|
|
|
472
|
|
|
|
337,439
|
|
|
|
1,662
|
|
|
|
31,071
|
|
|
|
—
|
|
|
Pantos Logistics Co., Ltd.
|
|
|
7
|
|
|
|
20,638
|
|
|
|
7
|
|
|
|
47,615
|
|
|
|
—
|
|
|
|
8,183
|
|
|
Pantos Logistics (Shenzhen) Co., Ltd.
|
|
|
—
|
|
|
|
17,324
|
|
|
|
—
|
|
|
|
72,929
|
|
|
|
—
|
|
|
|
8,577
|
|
|
LG Corp.
|
|
|
—
|
|
|
|
15,205
|
|
|
|
—
|
|
|
|
41,836
|
|
|
|
7,937
|
|
|
|
—
|
|
|
Others
|
|
|
4,500
|
|
|
|
23,371
|
|
|
|
12,371
|
|
|
|
72,718
|
|
|
|
6,558
|
|
|
|
13,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
126,998
|
|
|
|
1,263,445
|
|
|
|
485,281
|
|
|
|
3,334,559
|
|
|
|
100,914
|
|
|
|
1,068,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
97
|
27.
|
Related Parties and Others, Continued
|
|
|
(f)
|
Key management personnel compensation
|
Compensation costs of key management for the three-month
and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended
September 30
|
|
|
For the nine-month
periods ended
September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Short-term benefits
|
|
W
|
858
|
|
|
|
534
|
|
|
|
2,866
|
|
|
|
2,066
|
|
|
Expenses related to the defined benefit plan
|
|
|
95
|
|
|
|
93
|
|
|
|
392
|
|
|
|
804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
953
|
|
|
|
627
|
|
|
|
3,258
|
|
|
|
2,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key management refers to the registered directors who have significant control and responsibilities over the
Controlling Company’s operations and business.
The Controlling Company issued the following public debentures on
October 27, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification
|
|
Issue date
|
|
|
Maturity date
|
|
|
Interest rate
|
|
|
Face amount
|
|
|
37-1
|
|
|
October 27, 2017
|
|
|
|
October 27, 2020
|
|
|
|
2.564
|
%
|
|
W
|
150,000
|
|
|
37-2
|
|
|
October 27, 2017
|
|
|
|
October 27, 2022
|
|
|
|
2.911
|
%
|
|
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98
LG DISPLAY CO., LTD.
Condensed Separate Interim Financial Statements
(Unaudited)
September 30, 2017 and 2016
(With Independent Auditors’ Review Report Thereon)
99
Table of Contents
100
Independent Auditors’ Review Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
LG Display Co.,
Ltd.:
Reviewed Financial Statements
We have
reviewed the accompanying condensed separate interim financial statements of LG Display Co., Ltd. (the “Company”) which comprise the condensed separate interim statement of financial position as of September 30, 2017, the condensed
separate interim statements of comprehensive income (loss) for each of the three-month and nine-month periods ended September 30, 2017 and 2016, and statements of changes in equity and cash flows for the nine-month periods ended
September 30, 2017 and 2016, and notes, comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Condensed Separate Interim Financial Statements
Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean
International Financial Reporting Standards No. 1034,
Interim Financial Reporting,
and for such internal controls as management determines necessary to enable the preparation of condensed separate interim financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Security and Futures
Commission of the Republic of Korea. A review of interim financial information consists principally of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the condensed separate interim financial statements referred to above
are not presented fairly, in all material respects, in accordance with Korean International Financial Reporting Standards No. 1034,
Interim Financial Reporting
.
Other Matters
The procedures and
practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.
We audited the separate statement of financial position as of December 31, 2016, and the related separate statements of comprehensive income, changes in
equity and cash flows for the year then ended, which are not accompanying this review report, in accordance with Korean Standards on Auditing, and our report thereon, dated February 21, 2017, expressed an unqualified opinion. The accompanying
condensed separate statement of financial position of the Company as of December 31, 2016, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects.
101
KPMG Samjong Accounting Corp.
Seoul, Korea
November 10, 2017
This report is effective as of November 10, 2017, the review report date. Certain subsequent events or
circumstances
,
which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of
the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
102
LG DISPLAY CO., LTD.
Condensed Separate Interim Statements of Financial Position
(Unaudited)
As of September 30, 2017 and December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
4, 24
|
|
|
W
|
542,610
|
|
|
|
259,467
|
|
|
Deposits in banks
|
|
|
4, 24
|
|
|
|
1,034,015
|
|
|
|
1,076,520
|
|
|
Trade accounts and notes receivable, net
|
|
|
5, 14, 24, 26
|
|
|
|
5,301,536
|
|
|
|
5,128,925
|
|
|
Other accounts receivable, net
|
|
|
5, 24
|
|
|
|
96,381
|
|
|
|
403,744
|
|
|
Other current financial assets
|
|
|
6, 24
|
|
|
|
15,028
|
|
|
|
7,696
|
|
|
Inventories
|
|
|
7
|
|
|
|
1,871,490
|
|
|
|
1,706,983
|
|
|
Other current assets
|
|
|
5
|
|
|
|
232,151
|
|
|
|
129,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
|
9,093,211
|
|
|
|
8,712,575
|
|
|
Deposits in banks
|
|
|
4, 24
|
|
|
|
11
|
|
|
|
13
|
|
|
Investments
|
|
|
8
|
|
|
|
2,781,868
|
|
|
|
2,656,026
|
|
|
Other non-current financial assets
|
|
|
6, 24
|
|
|
|
46,543
|
|
|
|
52,649
|
|
|
Property, plant and equipment, net
|
|
|
9
|
|
|
|
11,136,767
|
|
|
|
8,757,973
|
|
|
Intangible assets, net
|
|
|
10
|
|
|
|
697,218
|
|
|
|
673,966
|
|
|
Deferred tax assets
|
|
|
22
|
|
|
|
723,784
|
|
|
|
653,613
|
|
|
Other non-current assets
|
|
|
5
|
|
|
|
343,161
|
|
|
|
305,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
|
|
|
15,729,352
|
|
|
|
13,100,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
W
|
24,822,563
|
|
|
|
21,812,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable
|
|
|
24, 26
|
|
|
W
|
2,832,331
|
|
|
|
2,738,383
|
|
|
Current financial liabilities
|
|
|
11, 24
|
|
|
|
924,404
|
|
|
|
667,735
|
|
|
Other accounts payable
|
|
|
24
|
|
|
|
2,198,870
|
|
|
|
1,921,141
|
|
|
Accrued expenses
|
|
|
|
|
|
|
606,801
|
|
|
|
590,129
|
|
|
Income tax payable
|
|
|
|
|
|
|
285,930
|
|
|
|
155,641
|
|
|
Provisions
|
|
|
13
|
|
|
|
71,896
|
|
|
|
54,040
|
|
|
Advances received
|
|
|
|
|
|
|
90,627
|
|
|
|
18,944
|
|
|
Other current liabilities
|
|
|
13
|
|
|
|
37,048
|
|
|
|
30,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
7,047,907
|
|
|
|
6,176,344
|
|
|
Non-current financial liabilities
|
|
|
11, 24
|
|
|
|
3,107,259
|
|
|
|
3,185,449
|
|
|
Non-current provisions
|
|
|
13
|
|
|
|
24,043
|
|
|
|
8,155
|
|
|
Defined benefit liabilities, net
|
|
|
12
|
|
|
|
296,368
|
|
|
|
142,212
|
|
|
Long-term advances received
|
|
|
14
|
|
|
|
960,361
|
|
|
|
—
|
|
|
Other non-current liabilities
|
|
|
13
|
|
|
|
65,846
|
|
|
|
65,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
|
|
|
|
4,453,877
|
|
|
|
3,400,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
11,501,784
|
|
|
|
9,577,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
15
|
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
|
Share premium
|
|
|
|
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
|
Retained earnings
|
|
|
|
|
|
|
9,280,587
|
|
|
|
8,195,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
|
13,320,779
|
|
|
|
12,235,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
|
|
W
|
24,822,563
|
|
|
|
21,812,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
103
LG DISPLAY CO., LTD.
Condensed Separate Interim Statements of Comprehensive Income (Loss)
(Unaudited)
For the three-month and nine-month periods ended
September 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except earnings per share)
|
|
Note
|
|
|
For the three-month period
ended September 30
|
|
|
For the nine-month period
ended September 30
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Revenue
|
|
|
16, 26
|
|
|
W
|
6,594,290
|
|
|
|
6,222,819
|
|
|
W
|
19,160,088
|
|
|
|
17,166,281
|
|
|
Cost of sales
|
|
|
7, 17, 26
|
|
|
|
(5,725,300
|
)
|
|
|
(5,545,288
|
)
|
|
|
(15,872,104
|
)
|
|
|
(15,768,670
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
868,990
|
|
|
|
677,531
|
|
|
|
3,287,984
|
|
|
|
1,397,611
|
|
|
Selling expenses
|
|
|
18
|
|
|
|
(132,116
|
)
|
|
|
(93,563
|
)
|
|
|
(435,567
|
)
|
|
|
(281,412
|
)
|
|
Administrative expenses
|
|
|
18
|
|
|
|
(118,676
|
)
|
|
|
(104,597
|
)
|
|
|
(351,676
|
)
|
|
|
(321,334
|
)
|
|
Research and development expenses
|
|
|
|
|
|
|
(281,501
|
)
|
|
|
(293,216
|
)
|
|
|
(868,803
|
)
|
|
|
(816,447
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss)
|
|
|
|
|
|
|
336,697
|
|
|
|
186,155
|
|
|
|
1,631,938
|
|
|
|
(21,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
21
|
|
|
|
21,710
|
|
|
|
90,112
|
|
|
|
112,861
|
|
|
|
197,943
|
|
|
Finance costs
|
|
|
21
|
|
|
|
(21,712
|
)
|
|
|
(46,057
|
)
|
|
|
(83,180
|
)
|
|
|
(108,714
|
)
|
|
Other non-operating income
|
|
|
20
|
|
|
|
115,957
|
|
|
|
195,130
|
|
|
|
502,681
|
|
|
|
691,458
|
|
|
Other non-operating expenses
|
|
|
20
|
|
|
|
(102,181
|
)
|
|
|
(285,545
|
)
|
|
|
(617,011
|
)
|
|
|
(781,117
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) before income tax
|
|
|
|
|
|
|
350,471
|
|
|
|
139,795
|
|
|
|
1,547,289
|
|
|
|
(22,012
|
)
|
|
Income tax expense
|
|
|
22
|
|
|
|
69,130
|
|
|
|
23,295
|
|
|
|
273,981
|
|
|
|
54,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
|
|
|
|
|
281,341
|
|
|
|
116,500
|
|
|
|
1,273,308
|
|
|
|
(76,196
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities
|
|
|
12
|
|
|
|
(3,639
|
)
|
|
|
(1,033
|
)
|
|
|
(11,963
|
)
|
|
|
(3,817
|
)
|
|
Related income tax
|
|
|
12
|
|
|
|
881
|
|
|
|
250
|
|
|
|
2,895
|
|
|
|
924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,758
|
)
|
|
|
(783
|
)
|
|
|
(9,068
|
)
|
|
|
(2,893
|
)
|
|
Items that are or may be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
|
21
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(77
|
)
|
|
Related income tax
|
|
|
21
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58
|
)
|
|
Other comprehensive loss for the period, net of income tax
|
|
|
|
|
|
|
(2,758
|
)
|
|
|
(783
|
)
|
|
|
(9,068
|
)
|
|
|
(2,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period
|
|
|
|
|
|
W
|
278,583
|
|
|
|
115,717
|
|
|
W
|
1,264,240
|
|
|
|
(79,147
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (In Won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
23
|
|
|
W
|
786
|
|
|
|
326
|
|
|
W
|
3,559
|
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
|
23
|
|
|
W
|
786
|
|
|
|
326
|
|
|
W
|
3,559
|
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
104
LG DISPLAY CO., LTD.
Condensed Separate Interim Statements of Changes in Equity
(Unaudited)
For the nine-month periods ended September 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Share
capital
|
|
|
Share
premium
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Total
equity
|
|
|
Balances at January 1, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
7,289,333
|
|
|
|
58
|
|
|
|
11,329,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
(76,196
|
)
|
|
|
—
|
|
|
|
(76,196
|
)
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of available-for-sale financial assets, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58
|
)
|
|
|
(58
|
)
|
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,893
|
)
|
|
|
(58
|
)
|
|
|
(2,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period
|
|
W
|
—
|
|
|
|
—
|
|
|
|
(79,089
|
)
|
|
|
(58
|
)
|
|
|
(79,147
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
—
|
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at September 30, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
7,031,336
|
|
|
|
—
|
|
|
|
11,071,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at January 1, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
8,195,255
|
|
|
|
—
|
|
|
|
12,235,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
1,273,308
|
|
|
|
—
|
|
|
|
1,273,308
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
—
|
|
|
|
(9,068
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
W
|
—
|
|
|
|
—
|
|
|
|
1,264,240
|
|
|
|
—
|
|
|
|
1,264,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
—
|
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
—
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at September 30, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
9,280,587
|
|
|
|
—
|
|
|
|
13,320,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
105
LG DISPLAY CO., LTD.
Condensed Separate Interim Statements of Cash Flows
(Unaudited)
For the nine-month periods ended September 30,
2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
2017
|
|
|
2016
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
|
|
W
|
1,273,308
|
|
|
|
(76,196
|
)
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
22
|
|
|
273,981
|
|
|
|
54,184
|
|
|
Depreciation
|
|
17
|
|
|
1,259,107
|
|
|
|
1,470,545
|
|
|
Amortization of intangible assets
|
|
17
|
|
|
292,144
|
|
|
|
244,291
|
|
|
Gain on foreign currency translation
|
|
|
|
|
(85,878
|
)
|
|
|
(52,217
|
)
|
|
Loss on foreign currency translation
|
|
|
|
|
55,743
|
|
|
|
75,324
|
|
|
Expenses related to defined benefit plans
|
|
12
|
|
|
147,640
|
|
|
|
165,587
|
|
|
Gain on disposal of property, plant and equipment
|
|
|
|
|
(50,733
|
)
|
|
|
(39,146
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
4,628
|
|
|
|
2,394
|
|
|
Gain on disposal of intangible assets
|
|
|
|
|
(308
|
)
|
|
|
(900
|
)
|
|
Loss on disposal of intangible assets
|
|
|
|
|
9
|
|
|
|
20
|
|
|
Impairment loss on intangible assets
|
|
|
|
|
1,717
|
|
|
|
125
|
|
|
Finance income
|
|
|
|
|
(89,249
|
)
|
|
|
(196,769
|
)
|
|
Finance costs
|
|
|
|
|
69,281
|
|
|
|
85,507
|
|
|
Other income
|
|
|
|
|
(16,884
|
)
|
|
|
(15,546
|
)
|
|
Other expenses
|
|
|
|
|
142,764
|
|
|
|
104,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,003,962
|
|
|
|
1,898,134
|
|
|
Changes in
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
|
|
|
|
|
(89,765
|
)
|
|
|
(173,445
|
)
|
|
Other accounts receivable
|
|
|
|
|
8,870
|
|
|
|
2,400
|
|
|
Other current assets
|
|
|
|
|
(44,036
|
)
|
|
|
(33,370
|
)
|
|
Inventories
|
|
|
|
|
(164,507
|
)
|
|
|
(57,751
|
)
|
|
Other non-current assets
|
|
|
|
|
(103,977
|
)
|
|
|
(68,993
|
)
|
|
Trade accounts and notes payable
|
|
|
|
|
55,915
|
|
|
|
(268,163
|
)
|
|
Other accounts payable
|
|
|
|
|
4,361
|
|
|
|
(41,517
|
)
|
|
Accrued expenses
|
|
|
|
|
17,622
|
|
|
|
(92,516
|
)
|
|
Other current liabilities
|
|
|
|
|
6,372
|
|
|
|
(1,459
|
)
|
|
Other non-current liabilities
|
|
|
|
|
5,113
|
|
|
|
14,115
|
|
|
Long-term advance received
|
|
|
|
|
1,020,470
|
|
|
|
—
|
|
|
Provisions
|
|
|
|
|
(107,179
|
)
|
|
|
(77,769
|
)
|
|
Defined benefit liabilities, net
|
|
|
|
|
(5,447
|
)
|
|
|
(119,789
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
603,812
|
|
|
|
(918,257
|
)
|
|
Cash generated from operating activities
|
|
|
|
|
3,881,082
|
|
|
|
903,681
|
|
|
Income taxes paid
|
|
|
|
|
(197,373
|
)
|
|
|
(38,725
|
)
|
|
Interests received
|
|
|
|
|
18,176
|
|
|
|
26,047
|
|
|
Interests paid
|
|
|
|
|
(68,601
|
)
|
|
|
(73,675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
W
|
3,633,284
|
|
|
|
817,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
106
LG DISPLAY CO., LTD.
Condensed Separate Interim Statements of Cash Flows, Continued
(Unaudited)
For the nine-month periods ended September 30,
2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2017
|
|
|
2016
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends received
|
|
|
|
|
|
W
|
316,469
|
|
|
|
514,109
|
|
|
Proceeds from withdrawal of deposits in banks
|
|
|
|
|
|
|
1,272,002
|
|
|
|
2,080,602
|
|
|
Increase in deposits in banks
|
|
|
|
|
|
|
(1,229,495
|
)
|
|
|
(1,722,000
|
)
|
|
Acquisition of investments
|
|
|
|
|
|
|
(177,643
|
)
|
|
|
(147,878
|
)
|
|
Proceeds from disposal of investments
|
|
|
|
|
|
|
6,697
|
|
|
|
22,286
|
|
|
Acquisition of available-for-sale financial assets
|
|
|
|
|
|
|
(7
|
)
|
|
|
—
|
|
|
Proceeds from disposal of available-for-sale financial assets
|
|
|
|
|
|
|
—
|
|
|
|
419
|
|
|
Acquisition of financial assets at fair value through profit or loss
|
|
|
|
|
|
|
—
|
|
|
|
(1,500
|
)
|
|
Acquisition of property, plant and equipment
|
|
|
|
|
|
|
(3,408,598
|
)
|
|
|
(1,578,478
|
)
|
|
Proceeds from disposal of property, plant and equipment
|
|
|
|
|
|
|
152,123
|
|
|
|
72,686
|
|
|
Acquisition of intangible assets
|
|
|
|
|
|
|
(329,051
|
)
|
|
|
(308,664
|
)
|
|
Proceeds from disposal of intangible assets
|
|
|
|
|
|
|
874
|
|
|
|
1,056
|
|
|
Government grants received
|
|
|
|
|
|
|
1,505
|
|
|
|
730
|
|
|
Receipt from (payment for) settlement of derivatives
|
|
|
|
|
|
|
2,745
|
|
|
|
(36
|
)
|
|
Proceeds from collection of short-term loans
|
|
|
|
|
|
|
693
|
|
|
|
4,650
|
|
|
Increase in long-term loans
|
|
|
|
|
|
|
(300
|
)
|
|
|
(21,030
|
)
|
|
Increase in deposits
|
|
|
|
|
|
|
(1,378
|
)
|
|
|
(180
|
)
|
|
Decrease in deposits
|
|
|
|
|
|
|
1,161
|
|
|
|
913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(3,392,203
|
)
|
|
|
(1,082,315
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
|
|
|
—
|
|
|
|
107,345
|
|
|
Repayments of short-term borrowings
|
|
|
|
|
|
|
(113,209
|
)
|
|
|
—
|
|
|
Proceeds from issuance of debentures
|
|
|
|
|
|
|
298,780
|
|
|
|
298,784
|
|
|
Proceeds from long-term debt
|
|
|
|
|
|
|
400,000
|
|
|
|
919,505
|
|
|
Repayments of current portion of long-term debt and debentures
|
|
|
|
|
|
|
(364,601
|
)
|
|
|
(832,939
|
)
|
|
Dividends paid
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
|
42,062
|
|
|
|
313,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
|
283,143
|
|
|
|
48,800
|
|
|
Cash and cash equivalents at January 1
|
|
|
|
|
|
|
259,467
|
|
|
|
108,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at September 30
|
|
|
|
|
|
W
|
542,610
|
|
|
|
156,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
107
|
1.
|
Organization and Description of Business
|
LG Display Co., Ltd.
(the “Company”) was incorporated in February 1985 and the Company is a public corporation listed in Korea Exchange since 2004. The main business of the Company is to manufacture and sell displays and its related products. As of
September 30, 2017, the Company is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module
manufacturing plants in Gumi, Paju, China, Poland and Vietnam. The Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of September 30, 2017, LG Electronics Inc.,
a major shareholder of the Company, owns 37.9% (135,625,000 shares) of the Company’s common stock.
The Company’s common stock is
listed on the Korea Exchange under the identifying code 034220. As of September 30, 2017, there are 357,815,700 shares of common stock outstanding. The Company’s common stock is also listed on the New York Stock Exchange in the form of
American Depository Shares (“ADSs”) under the symbol “LPL”. One ADS represents one-half of one share of common stock. As of September 30, 2017, there are 29,572,308 ADSs outstanding.
|
2.
|
Basis of Presenting Financial Statements
|
|
|
(a)
|
Statement of Compliance
|
The condensed separate interim financial statements have been
prepared in accordance with Korean International Financial Reporting Standards (“K-IFRSs”) No.1034,
Interim Financial Reporting.
They do not include all of the information required for full annual financial statements and should be
read in conjunction with the separate financial statements of the Company as of and for the year ended December 31, 2016.
These
condensed interim financial statements are separate interim financial statements prepared in accordance with K-IFRS No.1027,
Separate Financial Statements,
presented by a parent, an investor in an associate or a venture in a joint ventures,
in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.
108
|
2.
|
Basis of Presenting Financial Statements, Continued
|
The condensed separate interim financial statements have been
prepared on the historical cost basis except for the following material items in the statements of financial position:
|
|
•
|
|
derivative instruments, financial assets at fair value through profit or loss and available-for-sale financial assets are measured at fair value, and
|
|
|
•
|
|
net defined benefit liabilities are recognized as the present value of defined benefit obligations less the fair value of plan assets
|
|
|
(c)
|
Functional and Presentation Currency
|
The condensed separate interim financial
statements are presented in Korean won, which is the Company’s functional currency.
|
|
(d)
|
Use of Estimates and Judgments
|
The preparation of the condensed separate interim
financial statements in conformity with K-IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed separate interim financial statements, the significant judgments made by
management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied in its separate financial statements as of and for the year ended December 31, 2016.
109
|
3.
|
Summary of Significant Accounting Policies
|
The significant accounting policies followed
by the Company in the preparation of its condensed separate interim financial statements are the same as those followed by the Company in its preparation of the separate financial statements as of and for the year ended December 31, 2016,
except for the application of K-IFRS No. 1034,
Interim Financial Reporting
, and the amended accounting standards explained below:
|
|
(a)
|
Changes in Accounting Policies
|
|
|
(i)
|
K-IFRS No. 1007,
Statement of Cash Flows
|
The Company has adopted the
amendment to K-IFRS No. 1007,
Statement of Cash Flows
, since January 1, 2017. The amendment to K-IFRS No. 1007 is part of the disclosure initiative to improve presentation and disclosure in financial statements and requires an
entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes due to cash flows and non-cash changes such as changes from financing cash flows,
changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair value and other changes. The Company has applied the amendment and disclosed changes in
liabilities arose from financing activities including both changes due to cash flows and non-cash changes in note 25.
|
|
(ii)
|
K-IFRS No. 1012,
Income Taxes
|
The Company has adopted the amendment to
K-IFRS No. 1012,
Income Taxes
, since January 1, 2017. The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that
deductible temporary difference. Furthermore, the amendment provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their
carrying amount. There is no impact of applying this amendment on the condensed separate interim financial statements.
110
|
3.
|
Summary of Significant Accounting Policies, Continued
|
|
|
(b)
|
New and Amended Standards and Interpretations Not Yet Adopted
|
A number of new standards
and interpretations are effective for annual periods beginning after January 1, 2017 and earlier application is permitted; however, the Company has not early adopted the following new standards and interpretations in preparing these condensed
separate interim financial statements.
|
|
(i)
|
K-IFRS No. 1109,
Financial Instruments
|
The Company plans to adopt
K-IFRS No. 1109,
Financial Instruments
, in its separate financial statements for annual periods beginning on January 1, 2018, assessing the financial impact of the adoption of K-IFRS No. 1109 and disclose the results in its
separate financial statements for the year ending December 31, 2017. As of September 30, 2017, other than the potential impacts described in the separate financial statements as of and for the year ended December 31, 2016, there are
no significant changes in relation to preparation for the adoption of this new standard.
|
|
(ii)
|
K-IFRS No. 1115,
Revenue from Contracts with Customers
|
The Company
plans to adopt K-IFRS No. 1115,
Revenue from Contracts with Customers
, in its separate financial statements for annual periods beginning on January 1, 2018, assessing the financial impact of the adoption of K-IFRS No. 1115 and
disclose the results in its separate financial statements for the year ending December 31, 2017. As of September 30, 2017, other than the potential impacts described in the separate financial statements as of and for the year ended
December 31, 2016, there are no significant changes in relation to preparation for the adoption of this new standard.
|
|
(iii)
|
K-IFRS No. 2112,
Foreign Currency Transactions and Advance Consideration
|
According to the new interpretation, K-IFRS No. 2112,
Foreign Currency Transactions and Advance Consideration
, the date of the
transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability
arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance, the entity shall determine a date of the transaction for each payment or receipt of advance consideration. K-IFRS No. 2122 is
effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. Management is currently assessing the potential impact on its condensed separate interim financial statements resulting from the application of
new interpretation.
111
|
4.
|
Cash and Cash Equivalents and Deposits in Banks
|
Cash and cash equivalents and deposits
in banks as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
W
|
542,610
|
|
|
|
259,467
|
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
W
|
961,629
|
|
|
|
1,004,134
|
|
|
Restricted cash (*)
|
|
|
72,386
|
|
|
|
72,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,034,015
|
|
|
|
1,076,520
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
Restricted cash (*)
|
|
W
|
11
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,576,636
|
|
|
|
1,336,000
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Restricted cash includes mutual growth fund to aid LG Group’s second and third-tier suppliers, pledge to enforce investment plans according to the receipt of subsidies from Gumi city and Gyeongsangbuk-do and
others.
|
|
5.
|
Receivables and Other Assets
|
|
|
(a)
|
Trade accounts and notes receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Trade, net
|
|
W
|
487,554
|
|
|
|
275,413
|
|
|
Due from related parties
|
|
|
4,813,982
|
|
|
|
4,853,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,301,536
|
|
|
|
5,128,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Other accounts receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Non-trade receivable, net
|
|
W
|
88,261
|
|
|
|
395,534
|
|
|
Accrued income
|
|
|
8,120
|
|
|
|
8,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
96,381
|
|
|
|
403,744
|
|
|
|
|
|
|
|
|
|
|
|
Due from related parties included in other accounts receivable, as of September 30, 2017 and
December 31, 2016 are
W
30,042 million and
W
308,756 million, respectively.
112
|
5.
|
Receivables and Other Assets, Continued
|
|
|
(c)
|
The aging of trade accounts and note receivable, other accounts receivable and long-term non-trade receivable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Not past due
|
|
W
|
5,301,381
|
|
|
|
88,017
|
|
|
|
8,738
|
|
|
|
(937
|
)
|
|
|
(272
|
)
|
|
|
—
|
|
|
Past due 1-15 days
|
|
|
922
|
|
|
|
8,281
|
|
|
|
—
|
|
|
|
(5
|
)
|
|
|
(4
|
)
|
|
|
—
|
|
|
Past due 16-30 days
|
|
|
115
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Past due 31-60 days
|
|
|
19
|
|
|
|
56
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
Past due more than 60 days
|
|
|
41
|
|
|
|
702
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(398
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,302,478
|
|
|
|
97,056
|
|
|
|
8,738
|
|
|
|
(942
|
)
|
|
|
(675
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Not past due
|
|
W
|
5,128,853
|
|
|
|
400,829
|
|
|
|
2,354
|
|
|
|
(520
|
)
|
|
|
(380
|
)
|
|
|
(23
|
)
|
|
Past due 1-15 days
|
|
|
113
|
|
|
|
2,281
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20
|
)
|
|
|
—
|
|
|
Past due 16-30 days
|
|
|
394
|
|
|
|
309
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Past due 31-60 days
|
|
|
63
|
|
|
|
639
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6
|
)
|
|
|
—
|
|
|
Past due more than 60 days
|
|
|
22
|
|
|
|
490
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(398
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,129,445
|
|
|
|
404,548
|
|
|
|
2,354
|
|
|
|
(520
|
)
|
|
|
(804
|
)
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113
|
5.
|
Receivables and Other Assets, Continued
|
The movement in the allowance for impairment in
respect of trade accounts and notes receivable, other accounts receivable and long-term non-trade receivable for the nine-month period ended September 30, 2017 and the year ended December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Balance at the beginning of the period
|
|
W
|
520
|
|
|
|
804
|
|
|
|
23
|
|
|
|
600
|
|
|
|
406
|
|
|
|
52
|
|
|
(Reversal of) bad debt expense
|
|
|
422
|
|
|
|
(129
|
)
|
|
|
(23
|
)
|
|
|
(80
|
)
|
|
|
398
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the reporting date
|
|
W
|
942
|
|
|
|
675
|
|
|
|
—
|
|
|
|
520
|
|
|
|
804
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
5.
|
Receivables and Other Assets, Continue
|
|
|
(d)
|
Other assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Advance payments
|
|
W
|
3,078
|
|
|
|
7,240
|
|
|
Prepaid expenses
|
|
|
150,753
|
|
|
|
65,842
|
|
|
Value added tax refundable
|
|
|
67,920
|
|
|
|
56,158
|
|
|
Emission rights
|
|
|
10,400
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
232,151
|
|
|
|
129,240
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Long-term prepaid expenses
|
|
W
|
343,161
|
|
|
|
304,935
|
|
|
Long-term advanced payment
|
|
|
—
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
343,161
|
|
|
|
305,935
|
|
|
|
|
|
|
|
|
|
|
|
115
|
6.
|
Other Financial Assets
|
|
|
(a)
|
Other financial assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
6
|
|
|
|
—
|
|
|
Short-term loans
|
|
|
15,022
|
|
|
|
7,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,028
|
|
|
|
7,696
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Financial asset at fair value through profit or loss
|
|
W
|
1,382
|
|
|
|
1,382
|
|
|
Available-for-sale financial assets
|
|
|
4,412
|
|
|
|
5,708
|
|
|
Deposits
|
|
|
13,639
|
|
|
|
13,422
|
|
|
Long-term loans
|
|
|
17,930
|
|
|
|
29,562
|
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
2,331
|
|
|
Derivatives(*)
|
|
|
442
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
46,543
|
|
|
|
52,649
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets of related parties as of September 30, 2017 and December 31, 2016 are
W
1,000 million and
W
3,488 million, respectively.
|
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
|
|
(b)
|
Available-for-sale financial assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
6
|
|
|
|
—
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
156
|
|
|
|
154
|
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
Intellectual Discovery, Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
|
Kyulux, Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
|
Henghao Technology Co., Ltd.
|
|
|
1,559
|
|
|
|
1,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,256
|
|
|
|
5,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,418
|
|
|
|
5,708
|
|
|
|
|
|
|
|
|
|
|
|
116
Inventories as of September 30, 2017 and December 31, 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Finished goods
|
|
W
|
531,703
|
|
|
|
527,658
|
|
|
Work-in-process
|
|
|
722,155
|
|
|
|
633,422
|
|
|
Raw materials
|
|
|
391,814
|
|
|
|
312,013
|
|
|
Supplies
|
|
|
225,818
|
|
|
|
233,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,871,490
|
|
|
|
1,706,983
|
|
|
|
|
|
|
|
|
|
|
|
For the nine-month periods ended September 30, 2017 and 2016, the amount of inventories recognized as
cost of sales, inventory write-downs and reversal and usage of inventory write-downs included in cost of sales are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
Inventories recognized as cost of sales
|
|
W
|
15,872,104
|
|
|
|
15,768,670
|
|
|
Including: inventory write-downs
|
|
|
225,390
|
|
|
|
312,229
|
|
|
Including: reversal and usage of inventory write-downs
|
|
|
(185,454
|
)
|
|
|
(342,623
|
)
|
117
|
|
(a)
|
Investments in subsidiaries consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Overseas Subsidiaries
|
|
Location
|
|
|
Business
|
|
|
Percentage of
ownership
|
|
|
Book value
|
|
|
Percentage of
ownership
|
|
|
Book Value
|
|
|
LG Display
America, Inc.
|
|
|
San Jose,
U.S.A.
|
|
|
|
Sell Display products
|
|
|
|
100
|
%
|
|
W
|
36,815
|
|
|
|
100
|
%
|
|
W
|
36,815
|
|
|
LG Display
Germany GmbH
|
|
|
Eschborn,
Germany
|
|
|
|
Sell Display products
|
|
|
|
100
|
%
|
|
|
19,373
|
|
|
|
100
|
%
|
|
|
19,373
|
|
|
LG Display
Japan Co., Ltd.
|
|
|
Tokyo,
Japan
|
|
|
|
Sell Display products
|
|
|
|
100
|
%
|
|
|
15,686
|
|
|
|
100
|
%
|
|
|
15,686
|
|
|
LG Display
Taiwan Co., Ltd.
|
|
|
Taipei,
Taiwan
|
|
|
|
Sell Display products
|
|
|
|
100
|
%
|
|
|
35,230
|
|
|
|
100
|
%
|
|
|
35,230
|
|
|
LG Display
Nanjing Co., Ltd.
|
|
|
Nanjing,
China
|
|
|
|
Manufacture
Display products
|
|
|
|
100
|
%
|
|
|
593,726
|
|
|
|
100
|
%
|
|
|
593,726
|
|
|
LG Display
Shanghai Co., Ltd.
|
|
|
Shanghai,
China
|
|
|
|
Sell Display
products
|
|
|
|
100
|
%
|
|
|
9,093
|
|
|
|
100
|
%
|
|
|
9,093
|
|
|
LG Display
Poland Sp. z o.o.
|
|
|
Wroclaw,
Poland
|
|
|
|
Manufacture
Display products
|
|
|
|
100
|
%
|
|
|
194,992
|
|
|
|
100
|
%
|
|
|
194,992
|
|
|
LG Display
Guangzhou Co., Ltd.
|
|
|
Guangzhou,
China
|
|
|
|
Manufacture
Display products
|
|
|
|
100
|
%
|
|
|
293,557
|
|
|
|
100
|
%
|
|
|
293,557
|
|
|
LG Display
Shenzhen Co., Ltd.
|
|
|
Shenzhen,
China
|
|
|
|
Sell Display
products
|
|
|
|
100
|
%
|
|
|
3,467
|
|
|
|
100
|
%
|
|
|
3,467
|
|
|
LG Display
Singapore Pte. Ltd.
|
|
|
Singapore
|
|
|
|
Sell Display
products
|
|
|
|
100
|
%
|
|
|
1,250
|
|
|
|
100
|
%
|
|
|
1,250
|
|
|
L&T Display
Technology
(Fujian) Limited
|
|
|
Fujian,
China
|
|
|
|
Manufacture and sell
LCD module and
LCD monitor sets
|
|
|
|
51
|
%
|
|
|
10,123
|
|
|
|
51
|
%
|
|
|
10,123
|
|
|
LG Display
Yantai Co., Ltd.
|
|
|
Yantai,
China
|
|
|
|
Manufacture
Display products
|
|
|
|
100
|
%
|
|
|
169,195
|
|
|
|
100
|
%
|
|
|
169,195
|
|
|
Nanumnuri Co., Ltd.
|
|
|
Gumi,
South Korea
|
|
|
|
Janitorial services
|
|
|
|
100
|
%
|
|
|
800
|
|
|
|
100
|
%
|
|
|
800
|
|
|
LG Display
(China) Co., Ltd.
|
|
|
Guangzhou,
China
|
|
|
|
Manufacture and Sell
Display products
|
|
|
|
51
|
%
|
|
|
723,086
|
|
|
|
51
|
%
|
|
|
723,086
|
|
|
Unified Innovative Technology, LLC
|
|
|
Wilmington,
U.S.A.
|
|
|
|
Manage intellectual
property
|
|
|
|
100
|
%
|
|
|
9,489
|
|
|
|
100
|
%
|
|
|
9,489
|
|
|
LG Display
Guangzhou Trading Co., Ltd.
|
|
|
Guangzhou,
China
|
|
|
|
Sell Display
products
|
|
|
|
100
|
%
|
|
|
218
|
|
|
|
100
|
%
|
|
|
218
|
|
|
Global OLED Technology LLC
|
|
|
Herndon,
U.S.A
|
|
|
|
Manage OLED
intellectual property
|
|
|
|
100
|
%
|
|
|
164,322
|
|
|
|
100
|
%
|
|
|
164,322
|
|
|
LG Display
Vietnam Haiphong Co., Ltd.
|
|
|
Haiphong,
Vietnam
|
|
|
|
Manufacture
Display Products
|
|
|
|
100
|
%
|
|
|
117,378
|
|
|
|
100
|
%
|
|
|
117,378
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
Suzhou,
China
|
|
|
|
Manufacture and sell
LCD module and
LCD monitor sets
|
|
|
|
100
|
%
|
|
|
121,640
|
|
|
|
100
|
%
|
|
|
121,640
|
|
|
Money Market Trust(*)
|
|
|
Seoul,
South Korea
|
|
|
|
Money market trust
|
|
|
|
100
|
%
|
|
|
157,335
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,676,775
|
|
|
|
|
|
|
W
|
2,519,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
For the nine-month period ended September 30, 2017, the Company acquired
W
157.335 million of Money Market Trust.
|
118
|
8.
|
Investments, Continued.
|
For the nine-month period ended September 30, 2017, the
aggregate amount of received dividends from subsidiaries are
W
10,079 million.
|
|
(b)
|
Investments in associates consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Associates
|
|
Location
|
|
|
Business
|
|
|
Percentage
of ownership
|
|
|
Book Value
|
|
|
Percentage
of ownership
|
|
|
Book Value
|
|
|
Paju Electric Glass
Co., Ltd.
|
|
|
Paju,
South Korea
|
|
|
|
Manufacture
electric glass
for FPDs
|
|
|
|
40
|
%
|
|
W
|
45,089
|
|
|
|
40
|
%
|
|
W
|
45,089
|
|
|
New Optics Ltd. (*1)
|
|
|
Yangju,
South Korea
|
|
|
|
Manufacture
back light
parts for TFT-
LCDs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
46
|
%
|
|
|
14,221
|
|
|
INVENIA Co., Ltd.
|
|
|
Seongnam,
South Korea
|
|
|
|
Develop and
manufacture
the equipment
for FPDs
|
|
|
|
13
|
%
|
|
|
6,330
|
|
|
|
13
|
%
|
|
|
6,330
|
|
|
WooRee E&L
Co., Ltd.
|
|
|
Ansan,
South Korea
|
|
|
|
Manufacture
LED back
light unit
packages
|
|
|
|
14
|
%
|
|
|
10,268
|
|
|
|
14
|
%
|
|
|
10,268
|
|
|
LB Gemini New
Growth Fund
No.16 (*2)
|
|
|
Seoul,
South Korea
|
|
|
|
Invest in
small and
middle sized
companies
and benefit
from M&A
opportunities
|
|
|
|
31
|
%
|
|
|
434
|
|
|
|
31
|
%
|
|
|
2,510
|
|
|
Can Yang Investments
Limited (*3)
|
|
|
Hong Kong
|
|
|
|
Develop,
manufacture
and sell LED
parts
|
|
|
|
9
|
%
|
|
|
2,064
|
|
|
|
9
|
%
|
|
|
7,568
|
|
|
YAS Co., Ltd.
|
|
|
Paju,
South Korea
|
|
|
|
Develop and
manufacture
deposition
equipment for
OLEDs
|
|
|
|
15
|
%
|
|
|
10,000
|
|
|
|
18
|
%
|
|
|
10,000
|
|
|
Narenanotech
Corporation (*1)
|
|
|
Yongin,
South Korea
|
|
|
|
Manufacture
and sell FPD
manufacturing
equipment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23
|
%
|
|
|
30,000
|
|
|
AVATEC Co., Ltd.
|
|
|
Daegu,
South Korea
|
|
|
|
Process and
sell electric
glass for
FPDs
|
|
|
|
17
|
%
|
|
|
10,600
|
|
|
|
17
|
%
|
|
|
10,600
|
|
|
Arctic Sentinel, Inc.
|
|
|
Los Angeles
U.S.A.
|
|
|
|
Develop and
manufacture
tablet for kids
|
|
|
|
10
|
%
|
|
|
—
|
|
|
|
10
|
%
|
|
|
—
|
|
|
CYNORA GmbH (*4)
|
|
|
Bruchsal
Germany
|
|
|
|
Develop
organic
emitting
materials for
displays and
lighting
devices
|
|
|
|
14
|
%
|
|
|
20,308
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
105,093
|
|
|
|
|
|
|
W
|
136,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119
|
(*1)
|
For the nine-month period ended September 30, 2017, the Company disposed of the entire investments in New Optics Ltd. and Narenanotech Corporation.
|
|
(*2)
|
The Company is a member of a limited partnership in the LB Gemini New Growth Fund No.16 (“the Fund”). For the nine-month period ended September 30, 2017, the Company received
W
2,076
million from the Fund as capital distribution and there were no changes in the Company’s ownership percentage in the Fund. On the other hand, a resolution to dissolve the fund was approved at the general meeting and the fund is in process of
liquidation as of September 30, 2017. Accordingly, there were no additional investments for the nine-month period ended September 30, 2017.
|
|
(*3)
|
The Company recognized an impairment loss of
W
5,504 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in Can Yang Investments Limited.
|
|
8.
|
Investments, Continued.
|
|
(*4)
|
In September 2017, the Company invested
W
20,308 million and acquired 88,584 shares of preferred stock with voting rights in CYNORA GmbH. As of September 30, 2017, the Company‘s ownership
percentage in CYNORA GmbH is 14% and the Company has the right to appoint a director to the board of directors of the investee.
|
For the nine-month period ended September 30, 2017, the aggregate amount of received dividends from associates are
W
8,639
million.
|
9.
|
Property, Plant and Equipment
|
For the nine-month periods ended September 30, 2017
and 2016, the Company purchased property, plant and equipment of
W
3,709,525 million and
W
2,108,549 million, respectively. The capitalized borrowing costs and the annualized capitalization rate were
W
28,463 million and 1.87%, and
W
8,025 million and 2.17% for the nine-month periods ended September 30, 2017 and 2016, respectively. Also, for the nine-month periods ended September 30, 2017 and 2016, the
Company disposed of property, plant and equipment with carrying amounts of
W
67,940 million and
W
18,930 million, respectively, and recognized
W
50,733 million and
W
4,628 million,
respectively, as gain and loss on disposal of property, plant and equipment for the nine-month period ended September 30, 2017 (gain and loss for the nine-month period ended September 30, 2016:
W
39,146 million and
W
2,394 million, respectively).
The Company capitalizes expenditures related to development
activities, such as expenditures incurred on designing, manufacturing and testing of products after those related activities meet the capitalization criteria of development costs including technical feasibility, future economic benefits and others.
The balances of capitalized development costs as of September 30, 2017 and December 31, 2016, are
W
288,642 million and
W
256,340 million, respectively.
120
|
11.
|
Financial Liabilities
|
|
|
(a)
|
Financial liabilities as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
W
|
—
|
|
|
|
113,209
|
|
|
Current portion of long-term debt
|
|
|
924,404
|
|
|
|
554,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
924,404
|
|
|
|
667,735
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Won denominated borrowings
|
|
W
|
1,221,421
|
|
|
|
821,922
|
|
|
Foreign currency denominated borrowings
|
|
|
464,413
|
|
|
|
851,993
|
|
|
Bonds
|
|
|
1,421,346
|
|
|
|
1,511,062
|
|
|
Derivatives(*)
|
|
|
79
|
|
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,107,259
|
|
|
|
3,185,449
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
|
|
(b)
|
Short-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and USD)
|
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Standard Chartered Bank Korea Limited
|
|
|
—
|
|
|
W
|
—
|
|
|
|
113,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency equivalent
|
|
|
|
|
|
|
—
|
|
|
|
USD 94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Won denominated long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Woori Bank
|
|
3-year Korean Treasury Bond rate-1.25, 2.75
|
|
W
|
2,092
|
|
|
|
2,991
|
|
|
Shinhan Bank
|
|
CD rate (91days) + 0.30
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Korea Development Bank and others
|
|
CD rate (91days) + 0.64~0.74 2.28~2.58
|
|
|
1,020,000
|
|
|
|
620,000
|
|
|
Less current portion of long-term borrowings
|
|
|
|
|
(671
|
)
|
|
|
(1,069
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,221,421
|
|
|
|
821,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
121
|
11.
|
Financial Liabilities, Continued
|
|
|
(d)
|
Foreign currency denominated long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and USD)
|
|
|
Lender
|
|
Annual interest rate
as of
September 30, 2017 (%)(*)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
The Export-Import Bank of Korea and Others
|
|
|
3ML+0.55~1.04
|
|
|
W
|
808,423
|
|
|
|
1,027,225
|
|
|
Standard Chartered Bank Korea Limited
|
|
|
—
|
|
|
|
—
|
|
|
|
8,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency equivalent
|
|
|
|
|
|
|
USD 705
|
|
|
|
USD 857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less current portion of long-term borrowings
|
|
|
|
|
|
|
(344,010
|
)
|
|
|
(183,701
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
464,413
|
|
|
|
851,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
ML represents Month LIBOR (London Inter-Bank Offered Rates).
|
|
|
(e)
|
Details of bonds issued and outstanding as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Annual interest rate
as of
September 30, 2017 (%)
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Won denominated bonds(*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicly issued bonds
|
|
|
October 2017 ~June 2022
|
|
|
|
1.73~3.73
|
|
|
W
|
2,005,000
|
|
|
|
1,885,000
|
|
|
Less discount on bonds
|
|
|
|
|
|
|
|
|
|
|
(3,931
|
)
|
|
|
(4,182
|
)
|
|
Less current portion
|
|
|
|
|
|
|
|
|
|
|
(579,723
|
)
|
|
|
(369,756
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,421,346
|
|
|
|
1,511,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.
|
122
The Company’s defined benefit plans provide a lump-sum payment
to an employee based on final salary rates and length of service at the time the employee leaves the Company.
|
|
(a)
|
Net defined benefit liabilities recognized as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Present value of partially funded defined benefit obligations
|
|
W
|
1,521,615
|
|
|
|
1,400,621
|
|
|
Fair value of plan assets
|
|
|
(1,225,247
|
)
|
|
|
(1,258,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
296,368
|
|
|
|
142,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Expenses recognized in profit or loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Current service cost
|
|
W
|
48,615
|
|
|
|
52,626
|
|
|
|
145,846
|
|
|
|
157,878
|
|
|
Net interest cost
|
|
|
598
|
|
|
|
2,569
|
|
|
|
1,794
|
|
|
|
7,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
49,213
|
|
|
|
55,195
|
|
|
|
147,640
|
|
|
|
165,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Plan assets as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Guaranteed deposits in banks
|
|
W
|
1,225,247
|
|
|
|
1,258,409
|
|
As of September 30, 2017, the Company maintains the plan assets primarily with Mirae Asset Daewoo Co.,
Ltd., Shinhan Bank and others.
|
|
(d)
|
Remeasurements of the net defined benefit liabilities included in other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Remeasurements of net defined benefit liabilities
|
|
W
|
(3,639
|
)
|
|
|
(1,033
|
)
|
|
|
(11,963
|
)
|
|
|
(3,817
|
)
|
|
Tax effect
|
|
|
881
|
|
|
|
250
|
|
|
|
2,895
|
|
|
|
924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities, net of income tax
|
|
W
|
(2,758
|
)
|
|
|
(783
|
)
|
|
|
(9,068
|
)
|
|
|
(2,893
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123
|
13.
|
Provisions and Other Liabilities
|
|
|
(a)
|
Changes in provisions for the period ended September 30, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Warranties (*)
|
|
|
Others
|
|
|
Total
|
|
|
Balance at January 1, 2017
|
|
W
|
60,530
|
|
|
|
1,665
|
|
|
|
62,195
|
|
|
Additions
|
|
|
140,923
|
|
|
|
877
|
|
|
|
141,800
|
|
|
Usage
|
|
|
(108,056
|
)
|
|
|
—
|
|
|
|
(108,056
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2017
|
|
W
|
93,397
|
|
|
|
2,542
|
|
|
|
95,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
W
|
69,354
|
|
|
|
2,542
|
|
|
|
71,896
|
|
|
Non-current
|
|
W
|
24,043
|
|
|
|
—
|
|
|
|
24,043
|
|
|
(*)
|
The provision for warranties covers defective products and is normally applicable for 18 months from the date of purchase. The warranty liability is calculated by using historical and anticipated rates of warranty
claims, and costs per claim to satisfy the Company’s warranty obligation.
|
|
|
(b)
|
Other liabilities as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Withholdings
|
|
W
|
33,336
|
|
|
|
24,840
|
|
|
Unearned revenues
|
|
|
3,712
|
|
|
|
5,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
37,048
|
|
|
|
30,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Long-term accrued expenses
|
|
W
|
65,846
|
|
|
|
61,615
|
|
|
Long-term other accounts payable
|
|
|
—
|
|
|
|
3,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
65,846
|
|
|
|
65,143
|
|
|
|
|
|
|
|
|
|
|
|
124
|
14.
|
Contingencies and Commitments
|
Delaware Display Group LLC and Innovative Display Technologies LLC
(“DDG” and “IDT”)
In December 2013, Delaware Display Group LLC and Innovative Display Technologies LLC filed a
patent infringement case (“First Case”) against the Company and LG Display America, Inc. in the United States District Court for the District of Delaware and “DDG” and “IDT” filed a new patent infringement case against
the Company and LG Display America, Inc. over the three patents that were dismissed without prejudice from the First Case in December 2015. Additionally, in August 2016, Innovative Display Technologies LLC filed a new patent infringement case
against the Company and LG Display America, Inc. in the United States District Court for the Eastern District of Texas with respect to two new patents. In March 2017, the parties reached settlements in principle through mediation. In April 2017, the
parties filed a stipulation of dismissal and amicably settled all claims asserted in the above-mentioned patent litigations.
Surpass Tech Innovation LLC
In March 2014, Surpass Tech Innovation LLC filed a complaint in the United States District Court for the District of Delaware against the
Company and LG Display America, Inc. for alleged patent infringement. In April 2017, the case was terminated pursuant to a stipulation of dismissal filed by Surpass Tech Innovation LLC.
Others
The
Company is defending against various claims in addition to pending proceedings described above. The Company does not have a present obligation for these matters and has not recognized any provision at September 30, 2017.
125
|
14.
|
Contingencies and Commitments, Continued
|
Factoring and securitization of accounts receivable
The Company has agreements with Korea Development Bank and several other banks for accounts receivable sales negotiating facilities of up to an
aggregate of USD 1,793 million (
W
2,056,584 million) in connection with the Company’s export sales transactions with its subsidiaries. As of September 30, 2017, no short-term borrowings were outstanding in connection
with these agreements. In connection with all of the contracts in this paragraph, the Company has sold its accounts receivable with recourse.
The Company has a credit facility agreement with Shinhan Bank and several other banks pursuant to which the Company could sell its accounts
receivables up to an aggregate of
W
365,208 million in connection with its domestic and export sales transactions and, as of September 30, 2017, no accounts and notes receivable sold to Shinhan Bank were outstanding in
connection with the agreement. In connection with the contract above, the Company has sold its accounts receivable without recourse.
Letters of credit
As of September 30, 2017, the Company has agreements in relation to the opening of letters of credit up to USD 30 million
(
W
34,401 million) with KEB Hana Bank, USD 80 million (
W
91,736 million) with Bank of China and USD 50 million (
W
57,335 million) with Sumitomo Mitsui Banking Corporation.
Payment guarantees
The Company provides a payment guarantee in connection with the term loan credit facilities of LG Display Vietnam Haiphong, Co., Ltd. amounting
to USD 390 million (
W
447,213 million) for principals.
In addition, the Company obtained payment guarantees amounting
to USD 900 million (
W
1,032,030 million) from KEB Hana Bank and others for advance received related to the long-term supply agreements and USD 8.5 million (
W
9,747 million) from Shinhan bank for value added
tax payments in Poland.
License agreements
As of September 30, 2017, in relation to its LCD business, the Company has technical license agreements with Hitachi Display, Ltd. and
others and has a trademark license agreement with LG Corp.
Long-term supply agreement
As of September 30, 2017, in connection with long-term supply agreements with customers, the Company USD 900 million
(
W
1,032,030 million) in long-term advance. The advance received will be offset against outstanding accounts receivable balances after a given period of time, as well as those arising from the supply of products thereafter. The
Company received payment guarantees amounting to USD 900 million (
W
1,032,030 million) from KEB Hana Bank and other various banks relating to advance received.
126
The Company is authorized to issue 500,000,000 shares of capital stock
(par value
W
5,000), and as of September 30, 2017 and December 31, 2016, the number of issued common shares is 357,815,700. There have been no changes in the capital stock from January 1, 2016 to September 30,
2017.
Details of revenue for the three-month and nine-month periods ended
September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Sales of goods
|
|
W
|
6,582,101
|
|
|
|
6,212,820
|
|
|
|
19,117,997
|
|
|
|
17,132,667
|
|
|
Royalties
|
|
|
4,504
|
|
|
|
1,588
|
|
|
|
13,360
|
|
|
|
7,589
|
|
|
Others
|
|
|
7,685
|
|
|
|
8,411
|
|
|
|
28,731
|
|
|
|
26,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,594,290
|
|
|
|
6,222,819
|
|
|
|
19,160,088
|
|
|
|
17,166,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.
|
The Nature of Expenses and Others
|
The classification of expenses by nature for the three-month and
nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Changes in inventories
|
|
W
|
(184,627
|
)
|
|
|
(9,897
|
)
|
|
|
(164,506
|
)
|
|
|
(57,751
|
)
|
|
Purchases of raw materials, merchandise and others
|
|
|
2,849,969
|
|
|
|
2,729,678
|
|
|
|
7,553,067
|
|
|
|
7,616,029
|
|
|
Depreciation and amortization
|
|
|
539,468
|
|
|
|
485,256
|
|
|
|
1,551,251
|
|
|
|
1,714,836
|
|
|
Outsourcing fees
|
|
|
1,483,811
|
|
|
|
1,381,308
|
|
|
|
4,049,078
|
|
|
|
3,627,887
|
|
|
Labor costs
|
|
|
647,908
|
|
|
|
633,961
|
|
|
|
1,914,120
|
|
|
|
1,910,812
|
|
|
Supplies and others
|
|
|
272,180
|
|
|
|
208,374
|
|
|
|
727,126
|
|
|
|
614,500
|
|
|
Utility
|
|
|
195,947
|
|
|
|
187,425
|
|
|
|
530,283
|
|
|
|
536,397
|
|
|
Fees and commissions
|
|
|
117,812
|
|
|
|
117,425
|
|
|
|
348,267
|
|
|
|
348,372
|
|
|
Shipping costs
|
|
|
33,221
|
|
|
|
28,709
|
|
|
|
89,463
|
|
|
|
88,953
|
|
|
Advertising
|
|
|
51,201
|
|
|
|
16,652
|
|
|
|
140,655
|
|
|
|
44,466
|
|
|
Warranty expenses
|
|
|
27,749
|
|
|
|
26,734
|
|
|
|
140,923
|
|
|
|
80,226
|
|
|
Travel
|
|
|
21,061
|
|
|
|
15,400
|
|
|
|
57,900
|
|
|
|
47,056
|
|
|
Taxes and dues
|
|
|
11,164
|
|
|
|
11,590
|
|
|
|
34,795
|
|
|
|
36,017
|
|
|
Others
|
|
|
196,156
|
|
|
|
228,646
|
|
|
|
576,883
|
|
|
|
625,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,263,020
|
|
|
|
6,061,261
|
|
|
|
17,549,305
|
|
|
|
17,233,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses consist of cost of sales, selling, administrative, research and development expenses and other
non-operating expenses, excluding foreign exchange differences.
127
|
18.
|
Selling and Administrative Expenses
|
Details of selling and administrative expenses for
the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Salaries
|
|
W
|
53,152
|
|
|
|
48,923
|
|
|
|
159,191
|
|
|
|
143,298
|
|
|
Expenses related to defined benefit plans
|
|
|
6,480
|
|
|
|
7,178
|
|
|
|
19,592
|
|
|
|
21,615
|
|
|
Other employee benefits
|
|
|
12,523
|
|
|
|
10,574
|
|
|
|
38,084
|
|
|
|
34,813
|
|
|
Shipping costs
|
|
|
26,005
|
|
|
|
22,572
|
|
|
|
70,504
|
|
|
|
70,987
|
|
|
Fees and commissions
|
|
|
25,513
|
|
|
|
26,187
|
|
|
|
79,860
|
|
|
|
84,128
|
|
|
Depreciation
|
|
|
22,169
|
|
|
|
19,529
|
|
|
|
66,782
|
|
|
|
63,510
|
|
|
Taxes and dues
|
|
|
481
|
|
|
|
872
|
|
|
|
1,485
|
|
|
|
2,369
|
|
|
Advertising
|
|
|
51,201
|
|
|
|
16,652
|
|
|
|
140,655
|
|
|
|
44,466
|
|
|
Warranty expenses
|
|
|
27,749
|
|
|
|
26,734
|
|
|
|
140,923
|
|
|
|
80,226
|
|
|
Rent
|
|
|
2,484
|
|
|
|
2,486
|
|
|
|
7,491
|
|
|
|
7,432
|
|
|
Insurance
|
|
|
1,710
|
|
|
|
1,824
|
|
|
|
4,924
|
|
|
|
4,424
|
|
|
Travel
|
|
|
5,031
|
|
|
|
3,521
|
|
|
|
14,764
|
|
|
|
11,716
|
|
|
Training
|
|
|
4,450
|
|
|
|
2,874
|
|
|
|
11,808
|
|
|
|
10,564
|
|
|
Others
|
|
|
11,844
|
|
|
|
8,234
|
|
|
|
31,180
|
|
|
|
23,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
250,792
|
|
|
|
198,160
|
|
|
|
787,243
|
|
|
|
602,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of personnel expenses for the three-month and nine-month
periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Salaries and wages
|
|
W
|
553,390
|
|
|
|
526,595
|
|
|
|
1,638,911
|
|
|
|
1,573,533
|
|
|
Other employee benefits
|
|
|
76,451
|
|
|
|
73,958
|
|
|
|
224,611
|
|
|
|
229,039
|
|
|
Contributions to National Pension plan
|
|
|
18,573
|
|
|
|
18,013
|
|
|
|
54,325
|
|
|
|
51,694
|
|
|
Expenses related to defined benefit plan
|
|
|
49,213
|
|
|
|
55,195
|
|
|
|
147,640
|
|
|
|
165,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
697,627
|
|
|
|
673,761
|
|
|
|
2,065,487
|
|
|
|
2,019,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128
|
20.
|
Other Non-operating Income and Other Non-operating Expenses
|
|
|
(a)
|
Details of other non-operating income for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Rental income
|
|
W
|
867
|
|
|
|
748
|
|
|
|
2,631
|
|
|
|
2,604
|
|
|
Foreign currency gain
|
|
|
108,750
|
|
|
|
168,902
|
|
|
|
443,399
|
|
|
|
630,262
|
|
|
Reversal of allowance for doubtful accounts for other receivables
|
|
|
215
|
|
|
|
—
|
|
|
|
379
|
|
|
|
—
|
|
|
Gain on disposal of property, plant and equipment
|
|
|
4,916
|
|
|
|
9,955
|
|
|
|
50,733
|
|
|
|
39,146
|
|
|
Gain on disposal of intangible assets
|
|
|
—
|
|
|
|
—
|
|
|
|
308
|
|
|
|
900
|
|
|
Commission earned
|
|
|
394
|
|
|
|
303
|
|
|
|
689
|
|
|
|
938
|
|
|
Others
|
|
|
815
|
|
|
|
15,222
|
|
|
|
4,542
|
|
|
|
17,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
115,957
|
|
|
|
195,130
|
|
|
|
502,681
|
|
|
|
691,458
|
|
|
|
(b)
|
Details of other non-operating expenses for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Foreign currency loss
|
|
W
|
96,754
|
|
|
|
260,948
|
|
|
|
595,856
|
|
|
|
735,349
|
|
|
Other bad debt expenses
|
|
|
1,576
|
|
|
|
—
|
|
|
|
1,826
|
|
|
|
345
|
|
|
Loss on disposal of property, plant and equipment
|
|
|
1,420
|
|
|
|
184
|
|
|
|
4,628
|
|
|
|
2,394
|
|
|
Loss on disposal of intangible assets
|
|
|
9
|
|
|
|
—
|
|
|
|
9
|
|
|
|
20
|
|
|
Impairment loss on intangible assets
|
|
|
40
|
|
|
|
40
|
|
|
|
1,717
|
|
|
|
125
|
|
|
Donations
|
|
|
2,267
|
|
|
|
12,503
|
|
|
|
12,610
|
|
|
|
17,234
|
|
|
Expenses related to legal proceedings or claims and others
|
|
|
115
|
|
|
|
11,870
|
|
|
|
365
|
|
|
|
25,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
102,181
|
|
|
|
285,545
|
|
|
|
617,011
|
|
|
|
781,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
129
|
21.
|
Finance Income and Finance Costs
|
|
|
(a)
|
Finance income and costs recognized in profit and loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Finance income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
8,031
|
|
|
|
5,850
|
|
|
|
19,061
|
|
|
|
21,618
|
|
|
Dividend income
|
|
|
10,079
|
|
|
|
1,379
|
|
|
|
18,718
|
|
|
|
78,521
|
|
|
Foreign currency gain
|
|
|
3,263
|
|
|
|
70,097
|
|
|
|
67,181
|
|
|
|
82,326
|
|
|
Gain on disposal of investments
|
|
|
—
|
|
|
|
11,515
|
|
|
|
4,203
|
|
|
|
11,667
|
|
|
Gain on transaction of derivatives
|
|
|
—
|
|
|
|
1,271
|
|
|
|
3,106
|
|
|
|
3,811
|
|
|
Gain on valuation of derivatives
|
|
|
337
|
|
|
|
—
|
|
|
|
592
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
21,710
|
|
|
|
90,112
|
|
|
|
112,861
|
|
|
|
197,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
11,349
|
|
|
|
21,520
|
|
|
|
39,716
|
|
|
|
67,397
|
|
|
Foreign currency loss
|
|
|
9,678
|
|
|
|
9,510
|
|
|
|
12,453
|
|
|
|
22,280
|
|
|
Loss on disposal of investments
|
|
|
—
|
|
|
|
—
|
|
|
|
22,401
|
|
|
|
—
|
|
|
Loss on impairment of investments
|
|
|
—
|
|
|
|
—
|
|
|
|
5,504
|
|
|
|
1,632
|
|
|
Loss on sale of trade accounts and notes receivable
|
|
|
21
|
|
|
|
—
|
|
|
|
46
|
|
|
|
3
|
|
|
Loss on impairment of available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
1,298
|
|
|
|
—
|
|
|
Loss on transaction of derivatives
|
|
|
150
|
|
|
|
1,382
|
|
|
|
361
|
|
|
|
3,762
|
|
|
Loss on valuation of derivatives
|
|
|
—
|
|
|
|
13,338
|
|
|
|
—
|
|
|
|
12,715
|
|
|
Other
|
|
|
514
|
|
|
|
307
|
|
|
|
1,401
|
|
|
|
925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
21,712
|
|
|
|
46,057
|
|
|
|
83,180
|
|
|
|
108,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Finance income and costs recognized in other comprehensive income or loss for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Net change in fair value of available-for-sale financial assets
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(77
|
)
|
|
Tax effect
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income (costs) recognized in other comprehensive income or loss after tax
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130
|
|
(a)
|
Details of income tax expense for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Current tax expense
|
|
W
|
111,480
|
|
|
|
1,287
|
|
|
|
341,257
|
|
|
|
11,949
|
|
|
Deferred tax expense (benefit)
|
|
|
(42,350
|
)
|
|
|
22,008
|
|
|
|
(67,276
|
)
|
|
|
42,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
W
|
69,130
|
|
|
|
23,295
|
|
|
|
273,981
|
|
|
|
54,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Deferred Tax Assets and Liabilities
|
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the deferred tax assets at the reporting date will be realized with the Company’s estimated future taxable income.
Deferred tax assets and liabilities as of September 30, 2017 and December 31, 2016 are attributable to the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Assets
|
|
|
Liabilities
|
|
|
Total
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Other accounts receivable, net
|
|
W
|
—
|
|
|
|
—
|
|
|
|
(1,400
|
)
|
|
|
(1,190
|
)
|
|
|
(1,400
|
)
|
|
|
(1,190
|
)
|
|
Inventories, net
|
|
|
41,821
|
|
|
|
32,150
|
|
|
|
—
|
|
|
|
—
|
|
|
|
41,821
|
|
|
|
32,150
|
|
|
Defined benefit liabilities, net
|
|
|
49,719
|
|
|
|
10,817
|
|
|
|
—
|
|
|
|
—
|
|
|
|
49,719
|
|
|
|
10,817
|
|
|
Accrued expenses
|
|
|
123,466
|
|
|
|
119,952
|
|
|
|
—
|
|
|
|
—
|
|
|
|
123,466
|
|
|
|
119,952
|
|
|
Property, plant and equipment
|
|
|
185,587
|
|
|
|
177,833
|
|
|
|
—
|
|
|
|
—
|
|
|
|
185,587
|
|
|
|
177,833
|
|
|
Intangible assets
|
|
|
1,061
|
|
|
|
744
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,061
|
|
|
|
744
|
|
|
Provisions
|
|
|
23,217
|
|
|
|
15,051
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,217
|
|
|
|
15,051
|
|
|
Gain or loss on foreign currency translation, net
|
|
|
11
|
|
|
|
11
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
11
|
|
|
Others
|
|
|
14,632
|
|
|
|
10,845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,632
|
|
|
|
10,845
|
|
|
Tax credit carryforwards
|
|
|
285,670
|
|
|
|
287,400
|
|
|
|
—
|
|
|
|
—
|
|
|
|
285,670
|
|
|
|
287,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets (liabilities)
|
|
W
|
725,184
|
|
|
|
654,803
|
|
|
|
(1,400
|
)
|
|
|
(1,190
|
)
|
|
|
723,784
|
|
|
|
653,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate applicable to the Company is 24.2% for the nine-month period ended September 30, 2017.
Meanwhile, effective tax rate for the nine-month period ended September 30, 2017 decreased primarily due to change of the probability of utilizing deferred tax assets including tax credit carryforwards.
131
|
23.
|
Earnings (Loss) Per Share
|
|
|
(a)
|
Basic earnings (loss) per share for the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won and number of shares)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Profit (loss) for the period
|
|
W
|
281,340,302,457
|
|
|
|
116,500,254,294
|
|
|
|
1,273,307,737,914
|
|
|
|
(76,195,507,978
|
)
|
|
Weighted-average number of common stocks outstanding
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
|
|
W
|
786
|
|
|
|
326
|
|
|
|
3,559
|
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three-month and nine-month periods ended September 30, 2017 and 2016, there were no events or
transactions that resulted in changes in the number of common stocks used for calculating earnings (loss) per share.
|
|
(b)
|
Diluted earnings (loss) per share for the nine-month periods ended September 30, 2017 and 2016 are not calculated since there was no potential common stock.
|
|
24.
|
Financial Risk Management
|
The Company is exposed to credit risk, liquidity risk and
market risks. The Company identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below a threshold level.
Market risk is the risk that changes in market prices, such as foreign exchange
rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimizing the return.
The Company is exposed to currency risk on sales, purchases and borrowings that
are denominated in a currency other than the functional currency of the Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, JPY, etc.
Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the
cash flows generated by the underlying operations of the Company, primarily KRW and USD.
In respect of other monetary assets and
liabilities denominated in foreign currencies, the Company adopts policies to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
132
|
24.
|
Financial Risk Management, Continued
|
|
|
i)
|
Exposure to currency risk
|
The Company’s exposure to foreign currency risk based on
notional amounts as of September 30, 2017 and December 31, 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
September 30, 2017
|
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
PLN
|
|
|
EUR
|
|
|
Cash and cash equivalents
|
|
|
117
|
|
|
|
223
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
Trade accounts and notes receivable
|
|
|
4,313
|
|
|
|
1,113
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-trade receivable
|
|
|
15
|
|
|
|
1,488
|
|
|
|
57
|
|
|
|
—
|
|
|
|
6
|
|
|
Trade accounts and notes payable
|
|
|
(1,485
|
)
|
|
|
(13,558
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other accounts payable
|
|
|
(92
|
)
|
|
|
(9,908
|
)
|
|
|
(244
|
)
|
|
|
(9
|
)
|
|
|
(1
|
)
|
|
Debt
|
|
|
(705
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
2,163
|
|
|
|
(20,642
|
)
|
|
|
(187
|
)
|
|
|
(7
|
)
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31, 2016
|
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
PLN
|
|
|
EUR
|
|
|
Cash and cash equivalents
|
|
|
20
|
|
|
|
268
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
Trade accounts and notes receivable
|
|
|
3,929
|
|
|
|
1,315
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-trade receivable
|
|
|
90
|
|
|
|
4,222
|
|
|
|
1,312
|
|
|
|
—
|
|
|
|
3
|
|
|
Long-term non-trade receivable
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other assets denominated in foreign currencies
|
|
|
—
|
|
|
|
51
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Trade accounts and notes payable
|
|
|
(1,442
|
)
|
|
|
(14,940
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other accounts payable
|
|
|
(120
|
)
|
|
|
(7,161
|
)
|
|
|
(1
|
)
|
|
|
(12
|
)
|
|
|
(1
|
)
|
|
Debt
|
|
|
(951
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
1,528
|
|
|
|
(16,245
|
)
|
|
|
1,311
|
|
|
|
(10
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
24.
|
Financial Risk Management, Continued
|
Average exchange rates applied for the nine-month periods ended September 30, 2017 and
2016 and the exchange rates at September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won)
|
|
Average rate
|
|
|
Reporting date spot rate
|
|
|
|
|
2017
|
|
|
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
USD
|
|
W
|
1,138.67
|
|
|
|
1,161.32
|
|
|
W
|
1,146.70
|
|
|
|
1,208.50
|
|
|
JPY
|
|
|
10.18
|
|
|
|
10.70
|
|
|
|
10.20
|
|
|
|
10.37
|
|
|
CNY
|
|
|
167.49
|
|
|
|
176.22
|
|
|
|
172.35
|
|
|
|
173.26
|
|
|
PLN
|
|
|
297.15
|
|
|
|
297.66
|
|
|
|
312.96
|
|
|
|
287.62
|
|
|
EUR
|
|
|
1,267.31
|
|
|
|
1,296.67
|
|
|
|
1,350.87
|
|
|
|
1,267.60
|
|
A weaker won, as indicated below, against the following currencies which
comprise the Company’s assets or liabilities denominated in foreign currency as of September 30, 2017 and December 31, 2016, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based
on foreign currency exchange rate variances that the Company considers to be reasonably possible as of the end of reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in
equity and profit or loss would have been as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
|
|
Equity
|
|
|
Profit
or loss
|
|
|
Equity
|
|
|
Profit
or loss
|
|
|
USD (5 percent weakening)
|
|
W
|
94,004
|
|
|
|
94,004
|
|
|
|
69,986
|
|
|
|
69,986
|
|
|
JPY (5 percent weakening)
|
|
|
(7,983
|
)
|
|
|
(7,983
|
)
|
|
|
(6,383
|
)
|
|
|
(6,383
|
)
|
|
CNY (5 percent weakening)
|
|
|
(1,221
|
)
|
|
|
(1,221
|
)
|
|
|
8,609
|
|
|
|
8,609
|
|
|
PLN (5 percent weakening)
|
|
|
(83
|
)
|
|
|
(83
|
)
|
|
|
(109
|
)
|
|
|
(109
|
)
|
|
EUR (5 percent weakening)
|
|
|
256
|
|
|
|
256
|
|
|
|
96
|
|
|
|
96
|
|
A stronger won against the above currencies as of September 30, 2017 and December 31, 2016 would
have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
134
|
24.
|
Financial Risk Management, Continued
|
Interest rate risk arises principally from the Company’s debentures
and borrowings. The Company establishes and applies its policy to reduce uncertainty arising from fluctuations in the interest rate and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate
and establishing plan for countermeasures.
The interest rate profile of the Company’s interest-bearing financial instruments
as of September 30, 2017 and December 31, 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Fixed rate instruments
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
W
|
1,576,787
|
|
|
|
1,336,141
|
|
|
Financial liabilities
|
|
|
(2,723,141
|
)
|
|
|
(2,203,378
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(1,146,354
|
)
|
|
|
(867,237
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
W
|
(1,308,443
|
)
|
|
|
(1,649,334
|
)
|
|
|
ii)
|
Equity and profit or loss sensitivity analysis for variable rate instruments
|
As of
September 30, 2017 and December 31, 2016, a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for each 12-month period following the
reporting dates. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Equity
|
|
|
Profit or loss
|
|
|
|
|
1%p
increase
|
|
|
1%p
decrease
|
|
|
1%p
increase
|
|
|
1%p
decrease
|
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(7,265
|
)
|
|
|
7,265
|
|
|
|
(7,265
|
)
|
|
|
7,265
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(9,849
|
)
|
|
|
9,849
|
|
|
|
(9,849
|
)
|
|
|
9,849
|
|
|
(*)
|
Financial instruments subject to interest rate swap not qualified for hedging are excluded.
|
135
|
24.
|
Financial Risk Management, Continued
|
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.
The Company’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each
customer. However, management believes that the demographics of the Company’s customer base, including the default risk of the country in which customers operate, do not have a significant influence on credit risk since the majority of the
customers are global electronic appliance manufacturers operating in global markets.
The Company establishes credit limits for each
customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.
The Company does not establish allowances for receivables under insurance or receivables from customers with a high credit rating. For the rest
of the receivables, the Company establishes an allowance for impairment of trade and other receivables that have been individually or collectively evaluated for impairment and estimated on the basis of historical loss experience for assets.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of September 30,
2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Cash and cash equivalents
|
|
W
|
542,610
|
|
|
|
259,467
|
|
|
Deposits in banks
|
|
|
1,034,026
|
|
|
|
1,076,533
|
|
|
Trade accounts and notes receivable, net
|
|
|
5,301,536
|
|
|
|
5,128,925
|
|
|
Non-trade receivable, net
|
|
|
88,261
|
|
|
|
395,534
|
|
|
Accrued income
|
|
|
8,120
|
|
|
|
8,210
|
|
|
Available-for-sale financial assets
|
|
|
162
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Deposits
|
|
|
13,639
|
|
|
|
13,422
|
|
|
Short-term loans
|
|
|
15,022
|
|
|
|
7,696
|
|
|
Long-term loans
|
|
|
17,930
|
|
|
|
29,562
|
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
2,331
|
|
|
Derivatives
|
|
|
442
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
7,031,868
|
|
|
|
6,923,460
|
|
|
|
|
|
|
|
|
|
|
|
In addition to the financial assets above, as of September 30, 2017, the Company provides payment
guarantees of
W
447,213 million, for its subsidiaries.
Credit risk is the risk of financial loss to the Company if a
customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales and investing activities. Trade accounts and notes receivables are insured in order to manage credit risk and uninsured
trade accounts and notes receivables are managed in accordance with the Company’s management policy.
136
|
24.
|
Financial Risk Management, Continued
|
Liquidity risk is the risk that the Company will encounter difficulty in
meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
The Company has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the
extent that the Company does not generate sufficient cash flows from operations to meet its capital requirements, the Company may rely on other financing activities, such as external long-term borrowings and offerings of debt securities,
equity-linked and other debt securities. In addition, the Company maintains a line of credit with various banks.
The following are the
contractual maturities of financial liabilities, including estimated interest payments, as of September 30, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Contractual cash flows
|
|
|
|
|
Carrying
amount
|
|
|
Total
|
|
|
6 months
or less
|
|
|
6-12
months
|
|
|
1-2 years
|
|
|
2-5 years
|
|
|
More than
5 years
|
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
|
W
|
2,030,515
|
|
|
|
2,117,879
|
|
|
|
22,292
|
|
|
|
366,290
|
|
|
|
1,064,405
|
|
|
|
626,666
|
|
|
|
38,226
|
|
|
Unsecured bond issues
|
|
|
2,001,069
|
|
|
|
2,107,701
|
|
|
|
393,385
|
|
|
|
228,231
|
|
|
|
404,470
|
|
|
|
1,081,615
|
|
|
|
—
|
|
|
Trade accounts and notes payable
|
|
|
2,832,331
|
|
|
|
2,832,331
|
|
|
|
2,832,331
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other accounts payable
|
|
|
2,198,870
|
|
|
|
2,198,870
|
|
|
|
2,197,428
|
|
|
|
1,442
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Payment guarantee(*)
|
|
|
—
|
|
|
|
484,220
|
|
|
|
4,908
|
|
|
|
4,935
|
|
|
|
44,804
|
|
|
|
383,367
|
|
|
|
46,206
|
|
|
Derivative financial liabilities
|
|
|
79
|
|
|
|
78
|
|
|
|
166
|
|
|
|
(88
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,062,864
|
|
|
|
9,741,079
|
|
|
|
5,450,510
|
|
|
|
600,810
|
|
|
|
1,513,679
|
|
|
|
2,091,648
|
|
|
|
84,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Contractual cash flows of payment guarantee is identical to timing of principal payment.
|
It is
not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.
137
|
24.
|
Financial Risk Management, Continued
|
Management’s policy is to maintain a capital base so as to maintain
investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure.
Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Total liabilities
|
|
W
|
11,501,784
|
|
|
|
9,577,303
|
|
|
Total equity
|
|
|
13,320,779
|
|
|
|
12,235,447
|
|
|
Cash and deposits in banks (*1)
|
|
|
1,576,625
|
|
|
|
1,335,987
|
|
|
Borrowings (including bonds)
|
|
|
4,031,584
|
|
|
|
3,852,712
|
|
|
Total liabilities to equity ratio
|
|
|
86
|
%
|
|
|
78
|
%
|
|
Net borrowings to equity ratio (*2)
|
|
|
18
|
%
|
|
|
21
|
%
|
|
(*1)
|
Cash and deposits in banks consist of cash and cash equivalents and current deposit in banks.
|
|
(*2)
|
Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds) less cash and current deposits in banks by total equity.
|
|
|
(e)
|
Determination of fair value
|
(i) Measurement of fair value
A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed
in the notes specific to that asset or liability.
i) Current Assets and Liabilities
The carrying amounts approximate fair value because of the short maturity of these instruments.
ii) Trade Receivables and Other Receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest
at the reporting date. This fair value is determined for disclosure purposes. The carrying amounts of short-term receivables approximate fair value.
iii) Investments in Equity and Debt Securities
The fair value of marketable available-for-sale financial assets is determined by reference to their quoted closing bid price at the reporting
date. The fair value of non-marketable securities is determined using valuation methods.
iv) Non-derivative Financial Liabilities
Fair value, which is determined for disclosure purposes, except for the liabilities at FVTPL, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
138
|
24.
|
Financial Risk Management, Continued
|
|
|
(ii)
|
Fair values versus carrying amounts
|
The fair values of financial assets and
liabilities, together with the carrying amounts shown in the condensed separate interim statements of financial position, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
|
|
Carrying
amounts
|
|
|
Fair
values
|
|
|
Carrying
amounts
|
|
|
Fair values
|
|
|
Assets carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
162
|
|
|
|
162
|
|
|
|
154
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
1,382
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
442
|
|
|
|
442
|
|
|
|
244
|
|
|
|
244
|
|
|
Assets carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
W
|
542,610
|
|
|
|
(
|
*)
|
|
|
259,467
|
|
|
|
(
|
*)
|
|
Deposits in banks
|
|
|
1,034,026
|
|
|
|
(
|
*)
|
|
|
1,076,533
|
|
|
|
(
|
*)
|
|
Trade accounts and notes receivable
|
|
|
5,301,536
|
|
|
|
(
|
*)
|
|
|
5,128,925
|
|
|
|
(
|
*)
|
|
Non-trade receivable
|
|
|
88,261
|
|
|
|
(
|
*)
|
|
|
395.534
|
|
|
|
(
|
*)
|
|
Accrued income
|
|
|
8,120
|
|
|
|
(
|
*)
|
|
|
8,210
|
|
|
|
(
|
*)
|
|
Deposits
|
|
|
13,639
|
|
|
|
(
|
*)
|
|
|
13,422
|
|
|
|
(
|
*)
|
|
Short-term loans
|
|
|
15,022
|
|
|
|
(
|
*)
|
|
|
7,696
|
|
|
|
(
|
*)
|
|
Long-term loans
|
|
|
17,930
|
|
|
|
(
|
*)
|
|
|
29,562
|
|
|
|
(
|
*)
|
|
Long-term non-trade receivable
|
|
|
8,738
|
|
|
|
(
|
*)
|
|
|
2,331
|
|
|
|
(
|
*)
|
|
Liabilities carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
W
|
79
|
|
|
|
79
|
|
|
|
472
|
|
|
|
472
|
|
|
Liabilities carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
|
W
|
2,030,515
|
|
|
|
2,037,092
|
|
|
|
1,971,894
|
|
|
|
1,975,284
|
|
|
Unsecured bond issues
|
|
|
2,001,069
|
|
|
|
2,014,187
|
|
|
|
1,880,818
|
|
|
|
1,903,863
|
|
|
Trade accounts and notes payable
|
|
|
2,832,331
|
|
|
|
(
|
*)
|
|
|
2,738,383
|
|
|
|
(
|
*)
|
|
Other accounts payable
|
|
|
2,198,870
|
|
|
|
2,199,219
|
|
|
|
1,921,141
|
|
|
|
1,921,562
|
|
|
Long-term other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
3,528
|
|
|
|
3,891
|
|
|
(*)
|
Excluded from disclosures as the carrying amount approximates fair value.
|
The basis for
determining fair values above by the Company is consistent with those disclosed in the financial statements as of and for the year ended December 31, 2016.
139
|
24.
|
Financial Risk Management, Continued
|
|
|
(iii)
|
Financial Instruments measured at cost
|
Available-for-sale financial assets measured at cost as
of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
Intellectual Discovery Co., Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
|
Kyulux Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
|
Henghao Technology Co., Ltd.
|
|
|
1,559
|
|
|
|
1,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,256
|
|
|
|
5,554
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale-financial assets consist of investments in equity securities and the fair value of some
investments in equity securities are measured at cost because the range of reasonable fair value measurements is significant and the probabilities of the various estimates cannot be reasonably assessed since there is not a quoted price in an active
market for an identical instrument.
|
|
(iv)
|
Fair values of financial assets and liabilities
|
The table below analyzes financial instruments carried at fair value
based on the input variables used in the valuation method to measure fair value of assets and liabilities. The different levels have been defined as follows:
|
|
•
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
|
|
|
•
|
|
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
|
|
|
•
|
|
Level 3: inputs for the asset or liability that are not based on observable market data
|
140
|
24.
|
Financial Risk Management, Continued
|
|
|
ii)
|
Financial instruments measured at fair value
|
Fair value hierarchy classifications of the
financial instruments that are measured at fair value as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
162
|
|
|
|
—
|
|
|
|
—
|
|
|
|
162
|
|
|
Financial assets at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
442
|
|
|
|
442
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
79
|
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
W
|
154
|
|
|
|
—
|
|
|
|
—
|
|
|
|
154
|
|
|
Financial assets at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
1,382
|
|
|
|
1,382
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
244
|
|
|
|
244
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
472
|
|
|
|
472
|
|
|
|
iii)
|
Financial instruments not measured at fair value but for which the fair value is disclosed
|
Fair value hierarchy classifications, valuation technique and inputs for fair value measurements of the financial instruments not measured at
fair value but for which the fair value is disclosed as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2017
|
|
|
Valuation
technique
|
|
|
Input
|
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
|
W
|
—
|
|
|
|
—
|
|
|
|
2,037,092
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bond issues
|
|
|
—
|
|
|
|
—
|
|
|
|
2,014,187
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
2,199,219
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
141
|
24.
|
Financial Risk Management, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
Valuation
technique
|
|
|
Input
|
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
|
W
|
—
|
|
|
|
—
|
|
|
|
1,975,284
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Unsecured bond issues
|
|
|
—
|
|
|
|
—
|
|
|
|
1,903,863
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
1,921,562
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
|
Long-term other accounts payable
|
|
|
—
|
|
|
|
—
|
|
|
|
3,891
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount rate
|
|
iv) The interest rates applied for determination of the above fair value as of September 30, 2017 and
December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
Debentures, loans and others
|
|
1.27~2.73%
|
|
1.48~2.68%
|
142
|
25.
|
Changes in liabilities arising from financing activities
|
Changes in liabilities arising
from financing activities for the period ended September 30, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
Non-cash transactions
|
|
|
|
|
January 1,
2017
|
|
|
Cash flows from
financing activities
|
|
|
Reclassification
|
|
|
Gain or loss on
foreign currency
translation
|
|
|
Effective
interest
adjustment
|
|
|
September 30,
2017
|
|
|
Short-term borrowings
|
|
W
|
113,209
|
|
|
|
(113,209
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Current portion of long-term debt
|
|
|
554,526
|
|
|
|
(364,601
|
)
|
|
|
752,560
|
|
|
|
(18,540
|
)
|
|
|
459
|
|
|
|
924,404
|
|
|
Long-term borrowings
|
|
|
1,673,915
|
|
|
|
400,000
|
|
|
|
(363,052
|
)
|
|
|
(25,029
|
)
|
|
|
—
|
|
|
|
1,685,834
|
|
|
Bonds
|
|
|
1,511,062
|
|
|
|
298,780
|
|
|
|
(389,508
|
)
|
|
|
—
|
|
|
|
1,012
|
|
|
|
1,421,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,852,712
|
|
|
|
220,970
|
|
|
|
—
|
|
|
|
(43,569
|
)
|
|
|
1,471
|
|
|
|
4,031,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143
|
26.
|
Related Parties and Others
|
Related parties as of September 30, 2017 are as follows:
|
|
|
|
|
Classification
|
|
Description
|
|
Subsidiaries(*)
|
|
LG Display America, Inc. and others
|
|
Associates(*)
|
|
Paju Electric Glass Co., Ltd. and others
|
|
Subsidiaries of Associates
|
|
AVATEC Electronics Yantai Co., Ltd. and others
|
|
Entity that has significant influence over the Company
|
|
LG Electronics Inc.
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
Subsidiaries of LG Electronics Inc.
|
|
(*)
|
Details of subsidiaries and associates are described in note 8.
|
Related parties that have
transactions such as sales or balance of trade accounts and notes receivable and payable with the Company excluding subsidiaries and associates as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
Classification
|
|
September 30, 2017
|
|
December 31, 2016
|
|
Subsidiaries of associates
|
|
—
|
|
New Optics USA, Inc.
|
|
|
|
—
|
|
NEWOPTIX RS. SA DE CV
|
|
Entity that has significant influence over the Company
|
|
LG Electronics Inc.
|
|
LG Electronics Inc.
|
|
|
|
|
|
|
|
Hiplaza Co., Ltd.
|
|
Hiplaza Co., Ltd.
|
|
|
|
|
|
Subsidiaries of the
|
|
Hi Entech Co., Ltd.
|
|
Hi Entech Co., Ltd.
|
|
entity that has
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
significant influence
|
|
LG Innotek Co., Ltd.
|
|
LG Innotek Co., Ltd.
|
|
over the Company
|
|
Hanuri Co., Ltd.
|
|
Hanuri Co., Ltd.
|
|
|
|
Hi M Solutek
|
|
Hi M Solutek
|
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
|
Qingdao LG Inspur Digital
Communication Co., Ltd.
|
|
Qingdao LG Inspur Digital
Communication Co., Ltd.
|
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
|
—
|
|
LG Electronics U.S.A., Inc.
|
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
|
—
|
|
LG Electronics Thailand Co., Ltd.
|
|
|
|
LG Electronics RUS, LLC
|
|
LG Electronics RUS, LLC
|
|
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
LG Electronics Nanjing New Technology co., LTD.
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
LG Electronics India Pvt. Ltd.
|
|
|
|
LG Electronics do Brasil Ltda.
|
|
LG Electronics do Brasil Ltda.
|
144
|
26.
|
Related Parties and Others, Continued
|
|
|
(a)
|
Related parties, Continued
|
|
|
|
|
|
|
|
Classification
|
|
September 30, 2017
|
|
December 31, 2016
|
|
|
|
LG Electronics Alabama Inc.
|
|
—
|
|
|
|
LG Electronics Singapore PTE LTD.
|
|
LG Electronics Singapore PTE LTD.
|
|
|
|
LG Electronics Japan, Inc.
|
|
LG Electronics Japan, Inc.
|
|
|
|
P.T. LG Electronics Indonesia
|
|
P.T. LG Electronics Indonesia
|
|
|
|
LG Electronics Almaty Kazakhstan
|
|
LG Electronics Almaty Kazakhstan
|
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
|
—
|
|
LG Electronics Shenyang Inc.
|
|
|
|
LG Electronics Egypt S.A.E
|
|
LG Electronics Egypt S.A.E
|
|
|
|
—
|
|
LG Electronics Wroclaw Sp. Z o.o
|
|
|
|
PT.LG Electronics Service Indonesia
|
|
—
|
|
|
|
LG Electronics Ticaret A.S.
|
|
—
|
|
|
|
LG Japan Lab. Inc.
|
|
—
|
145
|
26.
|
Related Parties and Others, Continued
|
|
|
(b)
|
Significant transactions such as sales of goods and purchases of raw material and outsourcing service and others, which occurred in the normal course of business with related parties for the three-month and nine-month
periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display America, Inc.
|
|
W
|
3,019,271
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
LG Display Japan Co., Ltd.
|
|
|
726,449
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
LG Display Germany GmbH
|
|
|
426,024
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
423
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
322,899
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
334
|
|
|
LG Display Nanjing Co., Ltd.
|
|
|
4,454
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
136,328
|
|
|
|
—
|
|
|
LG Display Shanghai Co., Ltd.
|
|
|
311,912
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58
|
|
|
LG Display Poland Sp. z o.o.
|
|
|
70
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,636
|
|
|
|
—
|
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
3,057
|
|
|
|
—
|
|
|
|
2,105
|
|
|
|
—
|
|
|
|
507,848
|
|
|
|
2,644
|
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
402,008
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
LG Display Yantai Co., Ltd.
|
|
|
9,967
|
|
|
|
—
|
|
|
|
4,041
|
|
|
|
373
|
|
|
|
663,341
|
|
|
|
3,566
|
|
|
LG Display (China) Co., Ltd.
|
|
|
26
|
|
|
|
9,575
|
|
|
|
509,452
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
235,069
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
L&T Display Technology (Fujian) Limited
|
|
|
135,927
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
Nanumnuri Co., Ltd.
|
|
|
24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,324
|
|
|
Global OLED Technology LLC
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,526
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
180,841
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
971
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39,731
|
|
|
|
—
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
60,627
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,839,596
|
|
|
|
9,575
|
|
|
|
515,598
|
|
|
|
373
|
|
|
|
1,355,884
|
|
|
|
12,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
146
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WooRee E&L Co., Ltd.
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
INVENIA Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
691
|
|
|
|
1,872
|
|
|
|
—
|
|
|
|
23
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,685
|
|
|
|
40
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
94,966
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,025
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
1,142
|
|
|
|
20,059
|
|
|
|
—
|
|
|
|
650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
—
|
|
|
|
—
|
|
|
|
96,799
|
|
|
|
21,931
|
|
|
|
24,685
|
|
|
|
1,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
320,503
|
|
|
|
—
|
|
|
|
11,738
|
|
|
|
159,052
|
|
|
|
—
|
|
|
|
26,836
|
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
25,127
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
50,073
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
43
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
11,204
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
551
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
3,363
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
2,227
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
|
7,916
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
106
|
|
|
LG Electronics RUS, LLC
|
|
|
448
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
279
|
|
147
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
LG Innotek Co., Ltd.
|
|
W
|
4,406
|
|
|
|
—
|
|
|
|
48,422
|
|
|
|
—
|
|
|
|
—
|
|
|
|
627
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
78,853
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
20,539
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
22,167
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Hi Entech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,650
|
|
|
Others
|
|
|
1,403
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
148,873
|
|
|
|
—
|
|
|
|
48,422
|
|
|
|
78,853
|
|
|
|
—
|
|
|
|
10,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,308,972
|
|
|
|
9,575
|
|
|
|
672,557
|
|
|
|
260,209
|
|
|
|
1,380,569
|
|
|
|
52,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
148
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display America, Inc.
|
|
W
|
8,056,946
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
15
|
|
|
LG Display Japan Co., Ltd.
|
|
|
2,002,614
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50
|
|
|
LG Display Germany GmbH
|
|
|
1,351,506
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,736
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
1,179,015
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
784
|
|
|
LG Display Nanjing Co., Ltd.
|
|
|
15,376
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
385,181
|
|
|
|
—
|
|
|
LG Display Shanghai Co., Ltd.
|
|
|
999,447
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
216
|
|
|
LG Display Poland Sp. z o.o.
|
|
|
1,893
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,022
|
|
|
|
33
|
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
27,808
|
|
|
|
—
|
|
|
|
5,829
|
|
|
|
—
|
|
|
|
1,666,594
|
|
|
|
7,732
|
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
1,274,715
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
LG Display Yantai Co., Ltd.
|
|
|
27,030
|
|
|
|
—
|
|
|
|
13,322
|
|
|
|
373
|
|
|
|
1,584,782
|
|
|
|
17,228
|
|
|
LG Display (China) Co., Ltd.
|
|
|
12,053
|
|
|
|
9,575
|
|
|
|
1,134,134
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
777,716
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
648
|
|
|
L&T Display Technology (Fujian) Limited
|
|
|
370,995
|
|
|
|
—
|
|
|
|
15
|
|
|
|
—
|
|
|
|
—
|
|
|
|
768
|
|
|
Nanumnuri Co., Ltd.
|
|
|
72
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,226
|
|
|
Global OLED Technology LLC
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,503
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
513,040
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
180
|
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
3,289
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39,731
|
|
|
|
—
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
170,909
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
16,784,424
|
|
|
|
9,575
|
|
|
|
1,153,300
|
|
|
|
373
|
|
|
|
3,702,310
|
|
|
|
52,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.(*)
|
|
W
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
6
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
110
|
|
|
INVENIA Co., Ltd.
|
|
|
10
|
|
|
|
—
|
|
|
|
1,304
|
|
|
|
20,778
|
|
|
|
—
|
|
|
|
171
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
530
|
|
|
|
—
|
|
|
|
—
|
|
|
|
65,899
|
|
|
|
538
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
8,109
|
|
|
|
289,760
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,218
|
|
|
Narenanotech Corporation(*)
|
|
|
—
|
|
|
|
—
|
|
|
|
279
|
|
|
|
12,251
|
|
|
|
—
|
|
|
|
177
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
2,871
|
|
|
|
64,337
|
|
|
|
—
|
|
|
|
2,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
11
|
|
|
|
8,639
|
|
|
|
294,214
|
|
|
|
97,366
|
|
|
|
65,903
|
|
|
|
6,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,168,067
|
|
|
|
—
|
|
|
|
27,694
|
|
|
|
528,088
|
|
|
|
—
|
|
|
|
85,688
|
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
63,346
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
75
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
149,796
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
167
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
53,202
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,391
|
|
|
LG Electronics Almaty Kazakhstan
|
|
|
10,642
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
11,760
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
|
25,843
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
175
|
|
|
LG Electronics RUS, LLC
|
|
|
3,477
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
730
|
|
150
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
LG Innotek Co., Ltd.
|
|
W
|
10,919
|
|
|
|
—
|
|
|
|
136,493
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,445
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
151,845
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
88,504
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
56,423
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Hi Entech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,030
|
|
|
Others
|
|
|
2,608
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
476,520
|
|
|
|
—
|
|
|
|
136,496
|
|
|
|
151,845
|
|
|
|
—
|
|
|
|
32,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
18,429,022
|
|
|
|
18,214
|
|
|
|
1,611,704
|
|
|
|
777,672
|
|
|
|
3,768,213
|
|
|
|
176,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents transactions occurred prior to disposal of the entire investments.
|
151
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display America, Inc.
|
|
W
|
2,733,748
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
LG Display Japan Co., Ltd.
|
|
|
504,459
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
LG Display Germany GmbH
|
|
|
503,720
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,729
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
190,740
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
329
|
|
|
LG Display Nanjing Co., Ltd.
|
|
|
7,129
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
103,057
|
|
|
|
—
|
|
|
LG Display Shanghai Co., Ltd.
|
|
|
406,483
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
57
|
|
|
LG Display Poland Sp. z o.o.
|
|
|
90
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,830
|
|
|
|
—
|
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
9,183
|
|
|
|
—
|
|
|
|
2,387
|
|
|
|
—
|
|
|
|
530,543
|
|
|
|
3,693
|
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
434,998
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12
|
|
|
LG Display Yantai Co., Ltd.
|
|
|
5,651
|
|
|
|
—
|
|
|
|
6,767
|
|
|
|
—
|
|
|
|
623,962
|
|
|
|
16,493
|
|
|
LG Display (China) Co., Ltd.
|
|
|
379
|
|
|
|
—
|
|
|
|
219,058
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
250,970
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
L&T Display Technology (Fujian) Limited
|
|
|
106,886
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
252
|
|
|
Nanumnuri Co., Ltd.
|
|
|
13
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,304
|
|
|
Global OLED Technology LLC
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,436
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
105,700
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
50,094
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,310,243
|
|
|
|
—
|
|
|
|
228,213
|
|
|
|
1
|
|
|
|
1,267,392
|
|
|
|
26,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
152
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Joint Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suzhou Raken Technology Co., Ltd. (*1)
|
|
W
|
2
|
|
|
|
1,379
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.
|
|
W
|
287
|
|
|
|
—
|
|
|
|
11,441
|
|
|
|
—
|
|
|
|
1,795
|
|
|
|
80
|
|
|
New Optics USA, Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
NEWOPTIX RS. SA DE CV
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
INVENIA Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
1,011
|
|
|
|
5,785
|
|
|
|
—
|
|
|
|
49
|
|
|
TLI Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
17,358
|
|
|
|
—
|
|
|
|
—
|
|
|
|
547
|
|
|
AVACO Co., Ltd. (*2)
|
|
|
—
|
|
|
|
—
|
|
|
|
20
|
|
|
|
206
|
|
|
|
—
|
|
|
|
19
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,187
|
|
|
|
309
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
123,396
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,015
|
|
|
LB Gemini New Growth Fund No.16
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Narenanotech Corporation
|
|
|
—
|
|
|
|
—
|
|
|
|
132
|
|
|
|
2,422
|
|
|
|
—
|
|
|
|
154
|
|
|
ADP System Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
491
|
|
|
|
43,486
|
|
|
|
—
|
|
|
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
293
|
|
|
|
—
|
|
|
|
153,849
|
|
|
|
51,902
|
|
|
|
18,989
|
|
|
|
2,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
364,593
|
|
|
|
—
|
|
|
|
5,378
|
|
|
|
183,744
|
|
|
|
—
|
|
|
|
11,682
|
|
153
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
23,570
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
40,332
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
17,050
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
550
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
1,393
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
83
|
|
|
LG Electronics Kazakhstan
|
|
|
5,124
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
7,372
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
|
3,376
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
45
|
|
|
LG Electronics RUS, LLC
|
|
|
1,921
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
384
|
|
|
LG Innotek Co., Ltd.
|
|
|
3,913
|
|
|
|
—
|
|
|
|
41,906
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,977
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
66,610
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communication Co., Ltd.
|
|
|
62,714
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
4,410
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,402
|
|
|
Others
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
171,175
|
|
|
|
—
|
|
|
|
41,906
|
|
|
|
66,611
|
|
|
|
1
|
|
|
|
12,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,846,306
|
|
|
|
1,379
|
|
|
|
429,346
|
|
|
|
302,258
|
|
|
|
1,286,382
|
|
|
|
53,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Represents transactions occurred prior to exchange of the entire investments.
|
|
(*2)
|
Represents transactions occurred prior to disposal of the entire investments.
|
154
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display America, Inc.
|
|
W
|
7,206,056
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
175
|
|
|
LG Display Japan Co., Ltd.
|
|
|
1,323,283
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
|
LG Display Germany GmbH
|
|
|
1,291,192
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,621
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
904,128
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
861
|
|
|
LG Display Nanjing Co., Ltd.
|
|
|
33,224
|
|
|
|
—
|
|
|
|
—
|
|
|
|
68
|
|
|
|
330,359
|
|
|
|
1
|
|
|
LG Display Shanghai Co., Ltd.
|
|
|
1,072,678
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
132
|
|
|
LG Display Poland Sp. z o.o.
|
|
|
287
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,641
|
|
|
|
26
|
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
28,433
|
|
|
|
—
|
|
|
|
5,662
|
|
|
|
—
|
|
|
|
1,400,825
|
|
|
|
8,681
|
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
1,345,053
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
LG Display Yantai Co., Ltd.
|
|
|
19,729
|
|
|
|
—
|
|
|
|
21,859
|
|
|
|
—
|
|
|
|
1,477,995
|
|
|
|
29,293
|
|
|
LG Display (China) Co., Ltd.
|
|
|
1,335
|
|
|
|
18,119
|
|
|
|
507,104
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
693,122
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
L&T Display Technology (Fujian) Limited
|
|
|
354,125
|
|
|
|
—
|
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
|
|
600
|
|
|
Nanumnuri Co., Ltd.
|
|
|
39
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,390
|
|
|
Global OLED Technology LLC
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,521
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
237,402
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
50,094
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
14,560,180
|
|
|
|
18,119
|
|
|
|
534,635
|
|
|
|
68
|
|
|
|
3,243,820
|
|
|
|
55,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
|
Joint Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suzhou Raken Technology Co., Ltd.(*1)
|
|
W
|
59,388
|
|
|
|
31,280
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
543
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.
|
|
W
|
287
|
|
|
|
—
|
|
|
|
39,463
|
|
|
|
—
|
|
|
|
5,650
|
|
|
|
167
|
|
|
New Optics USA, Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
509
|
|
|
|
—
|
|
|
NEWOPTIX RS S.A DE C.V.
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
WOOREE E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
|
INVENIA Co., Ltd.
|
|
|
44
|
|
|
|
—
|
|
|
|
1,317
|
|
|
|
16,194
|
|
|
|
—
|
|
|
|
192
|
|
|
TLI Inc.
|
|
|
—
|
|
|
|
101
|
|
|
|
51,565
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,138
|
|
|
AVACO Co., Ltd.(*2)
|
|
|
—
|
|
|
|
128
|
|
|
|
703
|
|
|
|
4,964
|
|
|
|
—
|
|
|
|
849
|
|
|
AVATEC CO., LTD.
|
|
|
—
|
|
|
|
265
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,410
|
|
|
|
948
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
21,030
|
|
|
|
345,034
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,466
|
|
|
LB Gemini New Growth Fund No.16
|
|
|
—
|
|
|
|
7,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Narenanotech Corporation
|
|
|
17
|
|
|
|
—
|
|
|
|
369
|
|
|
|
9,558
|
|
|
|
—
|
|
|
|
330
|
|
|
ADP System Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
44
|
|
|
|
—
|
|
|
|
1,315
|
|
|
|
68,492
|
|
|
|
—
|
|
|
|
1,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
409
|
|
|
|
29,122
|
|
|
|
439,766
|
|
|
|
99,225
|
|
|
|
56,569
|
|
|
|
8,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,221,450
|
|
|
|
—
|
|
|
|
15,629
|
|
|
|
332,823
|
|
|
|
—
|
|
|
|
46,116
|
|
156
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Sales
and others
|
|
|
Dividend
income
|
|
|
Purchase and others
|
|
|
|
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other
costs
|
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
64,132
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
107,118
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
36,307
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,042
|
|
|
LG Electronics do Brasil Ltda.
|
|
|
5,373
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
159
|
|
|
LG Electronics Kazakhstan
|
|
|
11,438
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
15,142
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24
|
|
|
LG Electronics Mexicali S.A.DE C.V.
|
|
|
9,499
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
45
|
|
|
LG Electronics RUS, LLC
|
|
|
4,011
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
798
|
|
|
LG Innotek Co., Ltd.
|
|
|
8,484
|
|
|
|
—
|
|
|
|
149,914
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,535
|
|
|
LG-Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
92,939
|
|
|
|
—
|
|
|
|
—
|
|
|
Inspur LG Digital Mobile Communication Co., Ltd.
|
|
|
202,894
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
32,093
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
HiEntech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,954
|
|
|
Others
|
|
|
3
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
3,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
496,494
|
|
|
|
—
|
|
|
|
149,915
|
|
|
|
92,940
|
|
|
|
1
|
|
|
|
32,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
16,337,921
|
|
|
|
78,521
|
|
|
|
1,139,945
|
|
|
|
525,056
|
|
|
|
3,300,390
|
|
|
|
143,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Represents transactions occurred prior to exchange of the entire investments.
|
|
(*2)
|
Represents transactions occurred prior to disposal of the entire investments.
|
157
|
26.
|
Related Parties and Others, Continued
|
|
|
(c)
|
Trade accounts and notes receivable and payable as of September 30, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Trade accounts and notes
receivable and others
|
|
|
Trade accounts and notes
payable and others
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display America, Inc.
|
|
W
|
2,247,592
|
|
|
|
1,931,420
|
|
|
|
8
|
|
|
|
—
|
|
|
LG Display Japan Co., Ltd.
|
|
|
404,244
|
|
|
|
254,322
|
|
|
|
8
|
|
|
|
—
|
|
|
LG Display Germany GmbH
|
|
|
391,731
|
|
|
|
606,323
|
|
|
|
52
|
|
|
|
477
|
|
|
LG Display Taiwan Co., Ltd.
|
|
|
394,743
|
|
|
|
589,400
|
|
|
|
37
|
|
|
|
—
|
|
|
LG Display Nanjing Co., Ltd.
|
|
|
2,433
|
|
|
|
19,610
|
|
|
|
86,843
|
|
|
|
40,201
|
|
|
LG Display Shanghai Co., Ltd.
|
|
|
225,956
|
|
|
|
317,386
|
|
|
|
52
|
|
|
|
3
|
|
|
LG Display Poland Sp. z o.o.
|
|
|
46
|
|
|
|
1,775
|
|
|
|
5,828
|
|
|
|
6,972
|
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
461
|
|
|
|
141,946
|
|
|
|
257,337
|
|
|
|
259,962
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
168,827
|
|
|
|
110,817
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
171,133
|
|
|
|
244,500
|
|
|
|
—
|
|
|
|
6
|
|
|
LG Display Yantai Co., Ltd.
|
|
|
632
|
|
|
|
68,405
|
|
|
|
178,863
|
|
|
|
455,597
|
|
|
LG Display (China) Co., Ltd
|
|
|
11,614
|
|
|
|
2,793
|
|
|
|
343,026
|
|
|
|
51,389
|
|
|
LG Display Singapore Pte. Ltd.
|
|
|
236,557
|
|
|
|
286,265
|
|
|
|
1
|
|
|
|
1
|
|
|
L&T Display Technology (Fujian) Limited
|
|
|
93,932
|
|
|
|
83,074
|
|
|
|
226,490
|
|
|
|
211,092
|
|
|
Nanumnuri Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
63
|
|
|
|
1,538
|
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
3,120
|
|
|
|
—
|
|
|
|
41,620
|
|
|
|
—
|
|
|
Suzhou Lehui Display Co., Ltd.
|
|
|
38,577
|
|
|
|
31,445
|
|
|
|
36,364
|
|
|
|
37,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,391,598
|
|
|
|
4,689,481
|
|
|
|
1,176,592
|
|
|
|
1,064,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
158
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Trade accounts and notes
receivable and others
|
|
|
Trade accounts and notes
payable and others
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.(*)
|
|
W
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
8,616
|
|
|
INVENIA Co., Ltd.
|
|
|
500
|
|
|
|
833
|
|
|
|
3,392
|
|
|
|
6,436
|
|
|
WooRee E&L Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
AVATEC Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
3,704
|
|
|
|
5,190
|
|
|
Paju Electric Glass Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
66,396
|
|
|
|
71,685
|
|
|
Narenanotech Corporation(*)
|
|
|
—
|
|
|
|
300
|
|
|
|
—
|
|
|
|
2,812
|
|
|
YAS Co., Ltd.
|
|
|
500
|
|
|
|
833
|
|
|
|
23,344
|
|
|
|
3,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,000
|
|
|
|
2,966
|
|
|
|
96,849
|
|
|
|
98,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
347,673
|
|
|
|
355,826
|
|
|
|
146,490
|
|
|
|
153,195
|
|
159
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes
receivable and others
|
|
|
Trade accounts and notes
payable and others
|
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
Subsidiaries of the entity that has significant influence over the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Innotek Co., Ltd.
|
|
W
|
1,456
|
|
|
|
1,070
|
|
|
|
48,255
|
|
|
|
47,286
|
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
95,499
|
|
|
|
100,193
|
|
|
Hi Entech Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
4,164
|
|
|
|
4,080
|
|
|
Inspur LG Digital Mobile Communications
Co., Ltd.
|
|
|
20,722
|
|
|
|
46,091
|
|
|
|
—
|
|
|
|
5
|
|
|
LG Electronics Reynosa S.A. DE C.V.
|
|
|
9,199
|
|
|
|
10,292
|
|
|
|
264
|
|
|
|
259
|
|
|
LG Electronics India Pvt. Ltd.
|
|
|
15,637
|
|
|
|
4,651
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
32,799
|
|
|
|
35,121
|
|
|
|
—
|
|
|
|
—
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
2,847
|
|
|
|
5,941
|
|
|
|
2
|
|
|
|
3
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
16,083
|
|
|
|
5,016
|
|
|
|
—
|
|
|
|
—
|
|
|
Others
|
|
|
6,010
|
|
|
|
9,301
|
|
|
|
1,498
|
|
|
|
1,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
104,753
|
|
|
|
117,483
|
|
|
|
149,682
|
|
|
|
153,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,845,024
|
|
|
|
5,165,756
|
|
|
|
1,569,613
|
|
|
|
1,469,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Excluded from related parties due to disposal of equity investments during the nine-month period ended September 30, 2017.
|
160
|
26.
|
Related Parties and Others, Continued
|
|
|
(d)
|
Details of significant cash transactions such as loans and collection of loans, which occurred in the normal course of business with related parties for the nine-month periods ended September 30, 2017 and 2016 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Associates
|
|
Loans
|
|
|
Collection
of loans
|
|
|
Loans
|
|
|
Collection
of loans
|
|
|
INVENIA Co., Ltd.
|
|
W
|
—
|
|
|
|
333
|
|
|
|
—
|
|
|
|
—
|
|
|
YAS Co., Ltd.
|
|
|
—
|
|
|
|
333
|
|
|
|
—
|
|
|
|
—
|
|
|
New Optics Ltd.(*)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
—
|
|
|
|
666
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Excluded from related parties due to disposal of equity investments during the nine-month period ended September 30, 2017.
|
161
|
26.
|
Related Parties and Others, Continued
|
|
|
(e)
|
Conglomerate Transactions
|
Transactions, trade accounts and notes receivable and payable, and
others between the Company and certain companies and their subsidiaries, which are included in LG Group, one of conglomerates according to the Monopoly Regulation and Fair Trade Act for the three-month and nine-month periods ended September 30,
2017 and 2016 and as of September 30, 2017 and December 31, 2016 are as follows. These entities are not affiliates according to K-IFRS No. 1024,
Related Party Disclosures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
period ended
September 30, 2017
|
|
|
For the nine-month
period ended
September 30, 2017
|
|
|
September 30, 2017
|
|
|
|
|
Sales and
others
|
|
|
Purchase
and
others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable
and others
|
|
|
LG Chem Ltd.
|
|
W
|
8,243
|
|
|
|
230,324
|
|
|
|
8,243
|
|
|
|
642,523
|
|
|
|
6,090
|
|
|
|
117,875
|
|
|
Serveone Co., Ltd.
|
|
|
97
|
|
|
|
361,140
|
|
|
|
346
|
|
|
|
945,770
|
|
|
|
21,758
|
|
|
|
399,624
|
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
2,336
|
|
|
|
—
|
|
|
|
9,663
|
|
|
|
—
|
|
|
|
2,354
|
|
|
Silicon Works Co., Ltd.
|
|
|
—
|
|
|
|
163,019
|
|
|
|
—
|
|
|
|
448,486
|
|
|
|
—
|
|
|
|
120,765
|
|
|
LG CNS Co., Ltd.
|
|
|
184
|
|
|
|
60,860
|
|
|
|
323
|
|
|
|
122,085
|
|
|
|
—
|
|
|
|
52,525
|
|
|
LG CNS China Inc.
|
|
|
—
|
|
|
|
48
|
|
|
|
—
|
|
|
|
201
|
|
|
|
—
|
|
|
|
—
|
|
|
BizTech Partners Co., Ltd.
|
|
|
—
|
|
|
|
418
|
|
|
|
—
|
|
|
|
1,246
|
|
|
|
—
|
|
|
|
—
|
|
|
LG N-Sys Inc.
|
|
|
—
|
|
|
|
3,299
|
|
|
|
—
|
|
|
|
10,112
|
|
|
|
—
|
|
|
|
5,536
|
|
|
LG Hausys, Ltd.
|
|
|
419
|
|
|
|
3
|
|
|
|
1,255
|
|
|
|
47
|
|
|
|
—
|
|
|
|
3
|
|
|
LG International Corp.
|
|
|
4,637
|
|
|
|
2,478
|
|
|
|
13,878
|
|
|
|
7,524
|
|
|
|
8,632
|
|
|
|
1,638
|
|
|
LG International (America) Inc.
|
|
|
4,839
|
|
|
|
34,068
|
|
|
|
17,104
|
|
|
|
99,733
|
|
|
|
3,876
|
|
|
|
13,627
|
|
|
LG International (Japan) Ltd.
|
|
|
—
|
|
|
|
275,282
|
|
|
|
—
|
|
|
|
765,537
|
|
|
|
126
|
|
|
|
130,279
|
|
|
LG International (Singapore) Pte. Ltd.
|
|
|
153,564
|
|
|
|
669
|
|
|
|
409,688
|
|
|
|
812
|
|
|
|
104,827
|
|
|
|
12
|
|
|
LG International (Deutschland) GmbH
|
|
|
—
|
|
|
|
401
|
|
|
|
—
|
|
|
|
20,774
|
|
|
|
—
|
|
|
|
2,464
|
|
|
Pantos Logistics Co., Ltd.
|
|
|
10
|
|
|
|
22,625
|
|
|
|
34
|
|
|
|
69,948
|
|
|
|
—
|
|
|
|
15,018
|
|
|
Pantos Logistics (Shanghai) Co., Ltd.
|
|
|
—
|
|
|
|
4,515
|
|
|
|
—
|
|
|
|
12,656
|
|
|
|
—
|
|
|
|
1,529
|
|
162
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
period ended
September 30, 2017
|
|
|
For the nine-month
period ended
September 30, 2017
|
|
|
September 30, 2017
|
|
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable
and others
|
|
|
Pantos Logistics Poland
|
|
W
|
—
|
|
|
|
233
|
|
|
|
—
|
|
|
|
651
|
|
|
|
—
|
|
|
|
95
|
|
|
Pantos Logistics (China) Co., Ltd.
|
|
|
—
|
|
|
|
131
|
|
|
|
—
|
|
|
|
250
|
|
|
|
—
|
|
|
|
131
|
|
|
Hi Logistics China Co., Ltd.
|
|
|
—
|
|
|
|
316
|
|
|
|
—
|
|
|
|
1,001
|
|
|
|
—
|
|
|
|
112
|
|
|
LG Management Development Institute
|
|
|
—
|
|
|
|
3,237
|
|
|
|
—
|
|
|
|
7,607
|
|
|
|
3,480
|
|
|
|
893
|
|
|
GIIR America, Inc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,527
|
|
|
|
—
|
|
|
|
—
|
|
|
GIIR UK Limited
|
|
|
—
|
|
|
|
594
|
|
|
|
—
|
|
|
|
2,950
|
|
|
|
—
|
|
|
|
—
|
|
|
GIIR Germany GmbH
|
|
|
—
|
|
|
|
1,187
|
|
|
|
—
|
|
|
|
2,972
|
|
|
|
—
|
|
|
|
1,239
|
|
|
HS Ad Inc.
|
|
|
—
|
|
|
|
2,261
|
|
|
|
—
|
|
|
|
3,973
|
|
|
|
—
|
|
|
|
1,503
|
|
|
LG Corp.
|
|
|
—
|
|
|
|
15,804
|
|
|
|
—
|
|
|
|
46,762
|
|
|
|
4,700
|
|
|
|
7,791
|
|
|
Lusem Co., Ltd.
|
|
|
2
|
|
|
|
10
|
|
|
|
10
|
|
|
|
641
|
|
|
|
1
|
|
|
|
—
|
|
|
LG Uplus Corp
|
|
|
54
|
|
|
|
136
|
|
|
|
152
|
|
|
|
453
|
|
|
|
—
|
|
|
|
—
|
|
|
Others
|
|
|
—
|
|
|
|
237
|
|
|
|
23
|
|
|
|
562
|
|
|
|
—
|
|
|
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
172,049
|
|
|
|
1,185,631
|
|
|
|
451,056
|
|
|
|
3,226,466
|
|
|
|
153,490
|
|
|
|
875,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
163
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
period ended
September 30, 2016
|
|
|
For the nine-month
period ended
September 30, 2016
|
|
|
December 31, 2016
|
|
|
|
|
Sales and
others
|
|
|
Purchase and
others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable
and others
|
|
|
LG Chem Ltd.
|
|
W
|
21
|
|
|
|
198,110
|
|
|
|
34
|
|
|
|
690,052
|
|
|
|
30
|
|
|
|
98,185
|
|
|
Serveone Co., Ltd.
|
|
|
230
|
|
|
|
286,511
|
|
|
|
495
|
|
|
|
704,483
|
|
|
|
19,626
|
|
|
|
377,967
|
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
—
|
|
|
|
3,288
|
|
|
|
—
|
|
|
|
10,967
|
|
|
|
—
|
|
|
|
3,183
|
|
|
Silicon Works Co., Ltd.
|
|
|
—
|
|
|
|
137,143
|
|
|
|
—
|
|
|
|
433,263
|
|
|
|
13
|
|
|
|
106,313
|
|
|
LG CNS Co., Ltd.
|
|
|
—
|
|
|
|
39,692
|
|
|
|
417
|
|
|
|
90,323
|
|
|
|
—
|
|
|
|
87,574
|
|
|
LG CNS China Inc.
|
|
|
—
|
|
|
|
329
|
|
|
|
—
|
|
|
|
855
|
|
|
|
—
|
|
|
|
72
|
|
|
LG N-Sys Inc.
|
|
|
—
|
|
|
|
1,126
|
|
|
|
—
|
|
|
|
5,489
|
|
|
|
—
|
|
|
|
9,259
|
|
|
LG Hausys, Ltd.
|
|
|
419
|
|
|
|
5
|
|
|
|
1,279
|
|
|
|
623
|
|
|
|
—
|
|
|
|
—
|
|
|
LG International Corp.
|
|
|
5,388
|
|
|
|
2,339
|
|
|
|
8,262
|
|
|
|
7,432
|
|
|
|
16,951
|
|
|
|
1,114
|
|
|
LG International (America) Inc.
|
|
|
4,608
|
|
|
|
13,189
|
|
|
|
17,472
|
|
|
|
17,435
|
|
|
|
3,587
|
|
|
|
20,449
|
|
|
LG International (Japan) Ltd.
|
|
|
648
|
|
|
|
198,922
|
|
|
|
648
|
|
|
|
386,872
|
|
|
|
3,054
|
|
|
|
121,790
|
|
|
LG International (Singapore) Pte. Ltd.
|
|
|
72,545
|
|
|
|
472
|
|
|
|
337,439
|
|
|
|
1,662
|
|
|
|
31,071
|
|
|
|
—
|
|
|
LG International (Deutschland) GmbH
|
|
|
—
|
|
|
|
1,788
|
|
|
|
—
|
|
|
|
2,683
|
|
|
|
—
|
|
|
|
4,935
|
|
|
Pantos Logistics Co., Ltd.
|
|
|
7
|
|
|
|
20,638
|
|
|
|
7
|
|
|
|
47,615
|
|
|
|
—
|
|
|
|
8,183
|
|
|
Pantos Logistics (Shanghai) Co., Ltd.
|
|
|
—
|
|
|
|
3,807
|
|
|
|
—
|
|
|
|
11,719
|
|
|
|
—
|
|
|
|
1,819
|
|
|
Pantos Logistics Poland
|
|
|
—
|
|
|
|
319
|
|
|
|
—
|
|
|
|
529
|
|
|
|
—
|
|
|
|
110
|
|
|
Pantos Logistics (China) Co., Ltd.
|
|
|
—
|
|
|
|
149
|
|
|
|
—
|
|
|
|
149
|
|
|
|
—
|
|
|
|
4
|
|
|
LG Management Development Institute
|
|
|
—
|
|
|
|
2,963
|
|
|
|
—
|
|
|
|
7,394
|
|
|
|
3,480
|
|
|
|
376
|
|
164
|
26.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
period ended
September 30, 2016
|
|
|
For the nine-month
period ended
September 30, 2016
|
|
|
December 31, 2016
|
|
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Sales
and others
|
|
|
Purchase
and others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable
and others
|
|
|
HS Ad Inc.
|
|
W
|
—
|
|
|
|
693
|
|
|
|
—
|
|
|
|
1,861
|
|
|
|
—
|
|
|
|
1,465
|
|
|
LG Corp.
|
|
|
—
|
|
|
|
15,205
|
|
|
|
—
|
|
|
|
41,836
|
|
|
|
7,937
|
|
|
|
—
|
|
|
Lusem Co., Ltd.
|
|
|
3
|
|
|
|
449
|
|
|
|
11
|
|
|
|
1,759
|
|
|
|
1
|
|
|
|
309
|
|
|
LG Uplus Corp
|
|
|
—
|
|
|
|
77
|
|
|
|
77
|
|
|
|
290
|
|
|
|
—
|
|
|
|
22
|
|
|
Others
|
|
|
8
|
|
|
|
2,368
|
|
|
|
43
|
|
|
|
17,739
|
|
|
|
2
|
|
|
|
364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
83,877
|
|
|
|
929,582
|
|
|
|
366,184
|
|
|
|
2,483,030
|
|
|
|
85,752
|
|
|
|
843,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165
|
26.
|
Related Parties and Others, Continued
|
|
|
(f)
|
Key management personnel compensation
|
Compensation costs of key management for
the three-month and nine-month periods ended September 30, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the three-month
periods ended September 30
|
|
|
For the nine-month
periods ended September 30
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Short-term benefits
|
|
W
|
858
|
|
|
|
534
|
|
|
|
2,866
|
|
|
|
2,066
|
|
|
Expenses related to the defined benefit plan
|
|
|
95
|
|
|
|
93
|
|
|
|
392
|
|
|
|
804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
953
|
|
|
|
627
|
|
|
|
3,258
|
|
|
|
2,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key management refers to the registered directors who have significant control and responsibilities over the
Company’s operations and business.
The Company issued the following public debentures on October 27,
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
Classification
|
|
Issue date
|
|
|
Maturity date
|
|
|
Interest rate
|
|
|
Face amount
|
|
|
37-1
|
|
|
October 27, 2017
|
|
|
|
October 27, 2020
|
|
|
|
2.564
|
%
|
|
W
|
150,000
|
|
|
37-2
|
|
|
October 27, 2017
|
|
|
|
October 27, 2022
|
|
|
|
2.911
|
%
|
|
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
|
|
|
|
|
|
|
|
|
LG Display Co., Ltd
.
|
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date: November 14, 2017
|
|
By:
|
|
/s/ Heeyeon Kim
|
|
|
|
|
|
(Signature)
|
|
|
|
|
|
|
|
Name:
|
|
Heeyeon Kim
|
|
|
|
Title:
|
|
Head of IR / Vice President
|
167
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