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Financial Statements
17. Net Defined Benefit Liabilities
(A) Details of net defined benefit liabilities recognized on the statements of
financial position as at December 31, 2014 and 2013, are as follows:
(In millions of Korean won)
2014 2013
Present value of funded defined benefit
obligations
₩7,404,205 ₩5,672,147
Present value of unfunded defined
benefit obligations
138,042 55,931
Subtotal 7,542,247 5,728,078
Fair value of plan assets (7,340,905) (3,873,176)
Total ₩201,342 ₩1,854,902
(B) The amounts recognized in the statements of income for the years ended
December 31, 2014 and 2013, are as follows: (In millions of Korean won)
2014 2013
Current service cost ₩959,182 ₩836,916
Net interest cost 104,040 82,487
Past service cost 132,286 -
Other 29,994 8,164
Total ₩1,225,503 ₩927,567
(C) The amounts recognized as cost of defined contribution plans for the
years ended December 31, 2014 and 2013, are KRW 64,470 million and KRW
44,430 million, respectively.
(D) The pension expenses related to defined benefit plans recognized on the
statements of income for the years ended December 31, 2014 and 2013, are
as follows: (In millions of Korean won)
2014 2013
Cost of sales ₩518,401 ₩376,588
Selling and administrative expenses 707,102 550,979
Total ₩1,225,503 ₩927,567
(E) Changes in the defined benefit obligations for the years ended
December
31, 2014 and 2013, are as follows: (In millions of Korean won)
2014 2013
Balance as at January 1 ₩5,728,078 ₩4,669,467
Current service cost 959,182 836,916
Interest cost 306,810 226,271
Past service cost 132,286 -
Remeasurement:
Actuarial gains or losses arising from
changes in demographic assumptions
57,355 (38)
Actuarial gains or losses arising from
changes in financial assumptions
722,156 (22,870)
Other 54,586 257,724
Benefits paid (407,517) (244,186)
Foreign exchange differences (3,178) (18,128)
Other (7,511)22,922
Balance as at December 31 ₩7,542,247 ₩5,728,078
(F) Changes in the fair value of plan assets for the years ended December 31,
2014 and 2013, are as follows:
(In millions of Korean won)
2014 2013
Balance as at January 1 ₩3,873,176 ₩2,939,528
Expected return on plan assets 202,770 143,784
Remeasurement factor of plan assets (88,342) (37,343)
Contributions by employer 3,536,443 978,313
Benefits paid (187,391) (141,017)
Foreign exchange differences (497) (3,035)
Other 4,746 (7,054)
Balance as at December 31 ₩7,340,905 ₩3,873,176
Expected contributions to post-employment benefit plans for the year ending December 31,
2015, are KRW1,401,755 million.
(G) Plan assets as at December 31, 2014 and 2013, consist of as follows:
(In millions of Korean won)
2014 2013
Debt instruments ₩7,317,174 ₩3,851,102
Other 23,731 22,074
Total ₩7,340,905 ₩3,873,176
(*) Plan assets are mostly invested in instruments which have a quoted price in active mar-
kets.