Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | GRVY |
Entity Registrant Name | GRAVITY CO., LTD. |
Entity Central Index Key | 0001313310 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 6,948,900 |
Title of 12(b) Security | American depositary shares, each representing one share of common stock |
Entity File Number | 000-51138 |
Entity Address, Address Line One | 15F, 396 World Cup bukro |
Entity Address, City or Town | Mapo-gu, Seoul |
Entity Address, Postal Zip Code | 121-795 |
Entity Address, Country | KR |
Security Exchange Name | NASDAQ |
Entity Incorporation, State or Country Code | M5 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | International Financial Reporting Standards |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 15F, 396 World Cup bukro |
Entity Address, City or Town | Mapo-gu, Seoul |
Entity Address, Postal Zip Code | 03925 |
Entity Address, Country | KR |
Contact Personnel Name | Heung Gon Kim |
City Area Code | 82 |
Local Phone Number | 2-2132-7000 |
Contact Personnel Fax Number | 82-2-2132-7070 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | ₩ 79,428 | ₩ 86,051 |
Short-term financial instruments | 39,500 | 9,500 |
Accounts receivables, net | 32,253 | 60,664 |
Other receivables, net | 56 | 255 |
Prepaid expenses | 1,962 | 2,516 |
Other current assets | 2,664 | 1,182 |
Total current assets | 155,863 | 160,168 |
Property and equipment, net | 6,663 | 1,498 |
Intangible assets | 1,717 | 1,163 |
Deferred tax assets | 7,667 | 7,413 |
Other non-current financial assets | 1,770 | 1,494 |
Other non-current assets | 1,745 | 1,438 |
Total non-current assets | 19,562 | 13,006 |
Total assets | 175,425 | 173,174 |
Liabilities | ||
Accounts payables | 37,496 | 71,928 |
Deferred revenue | 10,748 | 16,476 |
Withholdings | 1,764 | 2,019 |
Accrued expenses | 1,175 | 1,031 |
Income tax payable | 2,618 | 1,944 |
Other current liabilities | 1,986 | 123 |
Total current liabilities | 55,787 | 93,521 |
Long-term account payables | 193 | |
Long-term deferred revenue | 98 | 3,598 |
Other non-current liabilities | 3,576 | 503 |
Deferred tax liabilities | 5 | |
Total non-current liabilities | 3,872 | 4,101 |
Total liabilities | 59,659 | 97,622 |
Equity | ||
Share capital | 3,474 | 3,474 |
Capital surplus | 27,128 | 27,141 |
Other components of equity | 274 | 138 |
Retained earnings | 84,668 | 45,405 |
Equity attributable to owners of the Parent Company | 115,544 | 76,158 |
Non-controlling interest | 222 | (606) |
Total equity | 115,766 | 75,552 |
Total liabilities and equity | ₩ 175,425 | ₩ 173,174 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Comprehensive Income [Abstract] | |||
Revenues | ₩ 360,967 | ₩ 286,770 | ₩ 141,623 |
Online games—subscription revenue | 30,751 | 25,897 | 36,428 |
Online games—royalties and license fees | 11,571 | 13,556 | 16,244 |
Mobile games | 301,903 | 239,489 | 82,624 |
Other revenue | 16,742 | 7,828 | 6,327 |
Cost of revenues | 265,788 | 210,044 | 94,234 |
Gross profit | 95,179 | 76,726 | 47,389 |
Selling, general and administrative expenses | (36,873) | (34,820) | (28,012) |
Research and development | (9,503) | (8,018) | (5,239) |
Other income | 353 | 122 | 165 |
Other expenses | (493) | (642) | (268) |
Operating profit | 48,663 | 33,368 | 14,035 |
Finance income | 4,187 | 2,073 | 1,875 |
Finance costs | (1,594) | (1,002) | (1,452) |
Profit before income tax | 51,256 | 34,439 | 14,458 |
Income tax expenses | 11,526 | 3,053 | 1,144 |
Profit for the year | 39,730 | 31,386 | 13,314 |
Items that may be subsequently reclassified to income or loss | |||
Foreign currency translation adjustments | 136 | 178 | 37 |
Total comprehensive income (loss) for the year | 39,866 | 31,564 | 13,351 |
Profit (loss) attributable to: | |||
Owners of the Parent Company | 39,876 | 31,443 | 13,319 |
Non‑controlling interest | (146) | (57) | (5) |
Total comprehensive income (loss) attributable to: | |||
Owners of the Parent Company | 40,012 | 31,621 | 13,356 |
Non-controlling interest | ₩ (146) | ₩ (57) | ₩ (5) |
Earnings per share (in Korean won) | |||
Basic earnings per share | ₩ 5,738 | ₩ 4,525 | ₩ 1,917 |
Diluted earnings per share | ₩ 5,738 | ₩ 4,525 | ₩ 1,917 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - KRW (₩) ₩ in Millions | Total | Share Capital | Capital Surplus | Other Components of Equity | Retained Earnings (Accumulated Deficit) | Attributable to Owners of the Parent Company Total | Non-Controlling Interest |
Beginning Balance at Dec. 31, 2016 | ₩ 30,647 | ₩ 3,474 | ₩ 27,901 | ₩ (77) | ₩ (94) | ₩ 31,204 | ₩ (557) |
Total comprehensive income (loss) for the year | |||||||
Profit (loss) for the year | 13,314 | 13,319 | 13,319 | (5) | |||
Foreign currency translation adjustments | 37 | 37 | 37 | ||||
Total comprehensive income (loss) for the year | 13,351 | 37 | 13,319 | 13,356 | (5) | ||
Transaction with owners, recognized directly in equity | |||||||
Disposition of deficit with capital surplus | (737) | 737 | |||||
Ending Balance at Dec. 31, 2017 | 43,998 | 3,474 | 27,164 | (40) | 13,962 | 44,560 | (562) |
Total comprehensive income (loss) for the year | |||||||
Profit (loss) for the year | 31,386 | 31,443 | 31,443 | (57) | |||
Foreign currency translation adjustments | 178 | 178 | 178 | ||||
Total comprehensive income (loss) for the year | 31,564 | 178 | 31,443 | 31,621 | (57) | ||
Transaction with owners, recognized directly in equity | |||||||
Equity transaction within consolidation scope | (10) | (23) | (23) | 13 | |||
Ending Balance at Dec. 31, 2018 | 75,552 | 3,474 | 27,141 | 138 | 45,405 | 76,158 | (606) |
Total comprehensive income (loss) for the year | |||||||
Profit (loss) for the year | 39,730 | 39,876 | 39,876 | (146) | |||
Foreign currency translation adjustments | 136 | 136 | 136 | ||||
Total comprehensive income (loss) for the year | 39,866 | 136 | 39,876 | 40,012 | (146) | ||
Transaction with owners, recognized directly in equity | |||||||
Equity transaction within consolidation scope | (11) | (13) | (13) | 2 | |||
Non-controlling interests | 359 | (613) | (613) | 972 | |||
Ending Balance at Dec. 31, 2019 | ₩ 115,766 | ₩ 3,474 | ₩ 27,128 | ₩ 274 | ₩ 84,668 | ₩ 115,544 | ₩ 222 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Cash generated from operations | ₩ 37,220 | ₩ 42,571 | ₩ 28,189 |
Interest received | 1,605 | 680 | 554 |
Interest paid | (277) | ||
Income taxes paid | (12,177) | (7,279) | (2,607) |
Net cash inflow from operating activities | 26,371 | 35,972 | 26,136 |
Cash flows from investing activities | |||
Proceeds from lease deposits | 7 | ||
Decrease(Increase) in short‑term financial instruments | (30,000) | 13,000 | (500) |
Decrease(Increase) in other non-current financial assets | (274) | ||
Decrease(Increase) in other current assets | 3 | 3 | |
Proceeds from disposal of property and equipment | 71 | 69 | 2 |
Proceeds from disposal of other intangible assets | 20 | ||
Payment of lease deposits | (2,644) | (430) | |
Purchase of property and equipment | (983) | (1,141) | (899) |
Purchase of other intangible assets | (1,360) | (1,108) | (1,165) |
Net cash inflow(outflow) in investing activities | (32,526) | 10,823 | (2,982) |
Cash flows from financing activities | |||
Repayment of lease liabilities | (2,034) | (197) | |
Proceeds from capital contribution from non-controlling interests | 359 | ||
Payment of share issuance cost | (11) | ||
Net cash outflow in financing activities | (1,686) | (197) | |
Effect of exchange rate changes on cash and cash equivalents | 1,218 | 358 | (779) |
Net increase (decrease) in cash and cash equivalents | (6,623) | 46,956 | 22,375 |
Cash and cash equivalents at beginning of the year | 86,051 | 39,095 | 16,720 |
Cash and cash equivalents at end of the year | ₩ 79,428 | ₩ 86,051 | ₩ 39,095 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2019 | |
General Information [Abstract] | |
General Information | 1. General Information The Parent Company GRAVITY CO., LTD. (“ the Parent Company”) was incorporated on April 4, 2000 to engage in developing and distributing online games and other related Korea principal product, Ragnarok a online role playing game, was commercially launched in August 2002 On February 8, 2005, the Parent Company Nasdaq Stock Market , and issued 1,400,000 shares of common stocks in the form s ”) under the symbol “GRVY”. As of December 31, 2019, the Parent Company’s total paid-in capital amounts to W Number of shares Ownership (%) GungHo Online Entertainment, Inc. 4,121,737 59.31 Others 2,827,163 40.69 6,948,900 100.00 Consolidated Subsidiaries Details of the consolidated subsidiaries as of December 31, 2019 and 2018 are as follows: Percentage of ownership (%) Subsidiary Location 2019 2018 Fiscal year end Main business Gravity Interactive, Inc. U.S.A. 100.00 100.00 December Online and mobile game services Gravity Entertainment Corp ( *1) Japan 100.00 100.00 December Animation production, distribution, and game services NeoCyon, Inc. ( *2) Korea 99.24 98.73 December Mobile game development and service Gravity Communications Co., Ltd. Taiwan 100.00 100.00 December Online and mobile game services PT Gravity Game Link ( *3) Indonesia 70.00 — December Online and mobile game services Gravity Game Tech Co., Ltd. ( *4) Thailand 100.00 — December Online and mobile game services Gravity Game Arise Co., Ltd. ( *5) Japan 100.00 — December Online and mobile game services (*1) As of December 31, Gravity Entertainment Corp. is in process of liquidation pursuant to management’s resolution in December 2019. (*2) During the year ended December 31, 2019, the Parent Company participated in paid-in capital increase of Neo Cyon, Inc., which resulted in increase of ownership interest of the Parent Company. (* 3) PT Gravity Game Link was established during the year ended December 31, 2019 with 70% ownership interest held by the Parent Company. (* 4) Gravity Game Tech Co., Ltd. was established during the year ended December 31, 2019 with 100% ownership interest held by the Parent Company. (* 5) Gravity Game Arise Co., Ltd. was established during the year ended December 31, 2019 with 100% ownership interest held by the Parent Company Condensed financial information of subsidiaries Details of the condensed financial information of subsidiaries as of December 31, 2019 and 2018 are as follows: 2019 Subsidiaries Total assets(*) Total liabilities(*) Revenue(*) Profit(loss) For the period(*) (In millions of Korean won) Gravity Interactive, Inc. W 39,296 W 29,112 W 230,029 W 12,804 Gravity Entertainment Corp. 44 52 263 (443 ) NeoCyon, Inc. 9,145 6,728 25,347 (982 ) Gravity Communications Co., Ltd. 19,964 8,227 21,811 5,637 PT Gravity Game Link 960 202 745 (437 ) Gravity Game Tech Co., Ltd. 4,008 2,624 2,295 (1,973 ) Gravity Game Arise Co., Ltd. 1,841 1,343 771 (35 ) (*) Amount before offsetting the related party transactions. 2018 Subsidiaries Total assets(*1) Total liabilities(*1) Revenue(*1) Profit(loss) For the period(*1) (In millions of Korean won) NeoCyon, Inc. W 6,620 W 5,210 W 22,783 W (2,057 ) Gravity Interactive, Inc. 79,806 80,017 84,329 (2,511 ) Gravity Entertainment Corp. 509 96 157 30 Gravity Communications Co., Ltd. 8,231 2,352 2,201 205 Gravity Games Corp.(*2) — — 12 4,165 (*1) Amount before offsetting the related party transactions. (*2) Gravity Games Corp. was liquidated during 2018 and has been excluded from subsidiary since then. |
Basis of accounting
Basis of accounting | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of accounting | 2. Basis of accounting Basis of Preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by International Accounting Standard Board (“IASB”). These consolidated financial statements were approved by the board of directors on April 24, 2020. This is the first set of the Group’s annual financial statements in which IFRS 16 Leases has been applied. The related changes to significant accounting policies are described in Note 3. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis. Use of judgements and estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, 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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) Critical judgements Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes for classification of leases etc. (ii) Deferred revenue The Group sells virtual currency and items that can be used in online and mobile games to game users. For online games, the entire amount of unused virtual currency is deferred for the period during which the refundable obligation is to be performed, and for items, revenue is recognized by deferring to the expected period of use estimated in consideration of the item’s attributes. For mobile games, when the Group defers revenue generated by micro-transactions, it estimates the game users’ life cycle and defers the remaining amount of virtual currency and items without an effective period purchased by active users as of the end of the reporting period. Revenues for items with effective period are recognized on a straight-line basis over the effective period. The Group considers a user as an active user if the period between the time of the user’s most recent access of the game and the period end equals or is shorter than the estimated game users’ life cycle. In order to estimate the expected period of use of items and mobile game users’ life cycle, it estimates the period of use by analyzing the customer’s behavior and consumption patterns such as payment and access, and periodically examines whether these estimates change. (iii) Deferred tax assets When the Group assessed the realizability of deferred tax assets, The Group considered its performance, general economic environment, projected future taxable income, and periods available to utilize tax loss carryforwards and tax credit carryforwards. The Group periodically monitors the estimates used in assessing the realizability of the deferred tax assets. The amount of deferred tax assets may be changed if estimated future taxable income during the carryforward periods was changes. |
Changes in Accounting Policies
Changes in Accounting Policies and Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Changes In Accounting Estimates [Abstract] | |
Changes in Accounting Policies and Disclosures | 3. Changes in Accounting Policies and Disclosures New and amended standards adopted by the Company The Group has applied the following standards and amendments for the first time for the annual reporting period commencing January 1, 2019. Enactment of IFRS 16 Leases The Group applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognized in retained earnings at January 1, 2019 (date of initial application). Accordingly, the comparative information presented for 2018 is not restated – i.e. it is presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been applied to comparative information. (i) Definition of a lease Previously, the Group determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determining whether an Arrangement contains a Lease. The Group now assesses whether a contract is or contains a lease based on the definition of a lease under IFRS 16. On transition to IFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Group applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after January 1, 2019. (ii) As a lessee As a lessee, the Group leases many assets including offices and equipment. The Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for most of these leases – i.e. these leases are on-balance sheet. At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone price. However, for leases of property, the Group has elected not to separate non-lease components and account for the lease and associated non-lease components as a single lease component. Previously, the Group classified property leases as operating leases under IAS 17. On transition, for these leases, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate as at January 1, 2019. The Group used a number of practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17. In particular, the Group: • did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application; • did not recognise right-of-use assets and liabilities for leases of low value assets; • excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application; and • used hindsight when determining the lease term. (iii) Impact on financial statements On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities. Additionally, the impact on transition is summarized below. January 1, 2019 (In millions of Korean won) Right-of-use assets(*1) Offices W 2,752 Vehicles 53 Computer and other equipment 1,648 Total W 4,453 Lease liabilities(*2) Current 1,672 Non-current 2,729 Total W 4,401 (*1) Right-of-use assets are included in ‘Property and equipment’ in the consolidated statement of financial position. (*2) Lease liabilities are included in ‘Other current liabilities’ and ‘Other non-current liabilities’ in the consolidated statement of financial position. On the adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IFRS 17. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The lessee’s weighted average incremental borrowing rate applied to lease liabilities on January 1, 2019 is 6.59%. January 1, 2019 (In millions of Korean won) Operating lease commitments disclosed as at December 31, 2018 W 5,137 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (472 ) Exemptions on low-value leases (5 ) Exemptions on short-term leases (737 ) Adjustments on evaluation of extension and termination options under IFRS 16 478 Lease liability recognized as at January 1, 2019 W 4,401 Current lease liabilities W 1,672 Non-current lease liabilities 2,729 W 4,401 Amendments to IFRS 9 Financial Instruments – Prepayment Features with Negative Compensation Amendments made to IFRS 9 Financial Instruments enable entities to measure certain financial assets containing prepayment features with negative compensation at amortized cost. The amendments also clarified that when a modification of a financial liability measured at amortized cost does not result in the derecognition, a modification gain or loss is recognized in profit or loss. The amendments did not have a significant impact on the Consolidated financial statements. Amendments to IAS 28 Investments in Associates and Joint Ventures – Long-term Interests in Associates and Joint Ventures The amendments clarifies that an entity applies IFRS 9 to financial instruments in an associate or joint venture to which the equity method is not applied. These include impairment of long-term interests that, in substance, form part of the entity’s net investment in an associate or joint venture for which IFRS 9 should take precedence. The amendment does not have a significant impact on the consolidated financial statements. Enactment of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments IFRIC Interpretation 23 clarifies how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment, and includes guidance on how to determine whether each uncertain tax treatment is considered separately or together. It also presents examples of circumstances where a judgement or estimate is required to be reassessed. The adoption of IFRIC Interpretation 23 did not have a significant impact on the consolidated financial statements. Annual Improvements (i) Amendments to IFRS 11 Joint Agreements The amendments clarify that when a party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business. In such cases, previously held interests in the joint operation are not remeasured. The amendments did not have a significant impact on the consolidated financial statements. (ii) Amendments to Paragraph 57A of IAS 12 Income Tax The amendment is applied to all the income tax consequences of dividends and requires an entity to recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events. The amendment did not have a significant impact on the consolidated financial statements. (iii) Amendment to IAS 23 Borrowing Costs The amendments clarify that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use (or sale), it becomes part of general borrowings. The amendment did not have a significant impact on the consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 4. Significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements in accordance with the IFRS are set out below. These policies have been consistently applied to all years presented, except if mentioned otherwise in Note 3. Consolidation The Company has prepared the consolidated financial statements in accordance with IFRS 10 Consolidated Financial Statements Subsidiaries are all entities over which Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases. The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recoded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase. Intercompany transactions, balances and unrealized gains on transactions between consolidated companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Segment Reporting Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 23). The CEO, as the chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments. Cash and cash equivalents Cash and cash equivalents include on hand, held at call with financial institutions, other investments with original maturities of or less that are readily convertible to known amounts of cash Financial Assets Classification At initial recognition, the Group classifies its financial assets in the following measurement categories: • measured at fair value through profit or loss • measured at fair value through other comprehensive income, and • measured at amortized cost. The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows. For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of equity instruments not elected as equity investment at fair value through other comprehensive income will be recognized in profit or loss. Measurement At initial recognition, the Group measures a financial asset at its fair value plus, for financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. (i) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories: • Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. • Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. Foreign exchange gains and losses and impairment losses are presented in ‘finance income or costs’. • Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘finance income or costs’ in the year in which it arises. (ii) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments, which are held for long-term investment or strategic purpose, in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continue to be recognized in profit or loss as ‘finance income’ when the right to receive payments is established. Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘other income or expenses’ in the statement of profit or loss as applicable. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value. Impairment The Group recognizes loss allowances for expected credit losses (“ECLs”) on: • financial assets measured at amortized cost; • debt investments measured at FVOCI; and • contract assets under IFRS 15. The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs: • debt securities that are determined to have low credit risk at the reporting date; and • other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition . Loss allowances for accounts and other receivables (including lease receivables) and contract assets are always measured at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment that includes forward-looking information. The Group considers a financial asset to be in default when: • the debtor is unlikely to pay its obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held); or • the financial asset is more than 90 days past due. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset. At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in OCI. Recognition and Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. Offsetting of financial instruments Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty. Property and equipment Property and equipment are initially measured cost. The of property and equipment expenditures arising directly from the construction or acquisition of the asset, any costs bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs item on which it is located. Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows: Computer and equipment 4 years Furniture and fixtures 4 years Leasehold improvements 4 years Depreciation method, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The change is accounted for as a change in an accounting estimate. Intangible assets Intangible assets, except for goodwill, are initially recognized at its historical cost, and carried at cost less accumulated amortization and accumulated impairment losses. The Group amortizes intangible assets with a definite useful life using the straight-line method over the following periods: Software 1 ~ 3 years Industrial property rights 10 years License 2 years Other intangible assets 3 years Expenditure on research activities is recognized expenses as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in expenses as incurred. The Group entered into a game licensing agreement with a number of third parties to gain exclusive rights to the games developed by other companies. The license fee payments are recognized as other intangible assets and amortized over the term of the contract. Impairment of Non-financial Assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets, incremental costs of obtaining a contract, costs to fulfil a contract, employee benefit related assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts The recoverable amount of an asset or cash generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount. Leases The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately. ① Policies applicable from January 1, 2019 At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. i) As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component. The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rates. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group other current liabilities’ ‘other non-current liabilities’ consolidated The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. ii) As a lessor At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the contract. The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue.’ Generally, the accounting policies applicable to the Group as a lessor in the comparative period were not different from with IFRS 16. ② Policy applicable before January 1, 2019 To classify each lease, the Group made i) As a lessor Lease income from operating leases is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred by the lessor in negotiating and arranging an operating lease is added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the lease income. ii) As a lessee Lease payments under an operating lease were recognized as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit. Contingent rents were charged as expenses in the periods in which they are incurred. Lease incentives received were recognized as liabilities and then as deduction of expense over the term of the lease unless another systematic basis is more representative of the time pattern of the user’s benefit. Financial Liabilities Classification and measurement The Group’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortized cost and present as ‘account payables,’ ‘other current liabilities,’ and ‘other non-current liabilities’ in the consolidated statement of financial position. Derecognition Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. Provisions and contingencies Provisions for legal claims, service warranties and make good obligations Group obligation an outflow of resources the amount reliably estimated Provisions are measured at the present value of management's best estimate of the required to settle the present obligation at the end of the reporting period. The discount rate used reflects current market assessments of the time value of money and the risks specific to the liability. In addition, when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a disclosure regarding the contingent liabilities is made in the notes to the financial statements. Foreign Currency Translation Functional and presentation currency Items included in the of each Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the end of reporting period. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and translated at the exchange rates at the end of reporting date. When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling interest. In any other partial disposal of a foreign operation, the relevant proportion is reclassified to profit or loss. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rate at the reporting date are generally recognized in profit or loss. They are recognized in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of net investment hedges, or are attributable to monetary part of the net investment in a foreign operation. Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss. Statement of cash flow s The Group has elected to present cash flows from operating activities using the indirect method. Cash flows denominated in a foreign currency are reported using average exchange rate during the fiscal year. Revenue from contracts with customers The Group engages in game licensing, IP licensing and game publishing businesses. Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or rendering of services arising from the normal course of the business. Amounts recognized as revenue are net of value added taxes, returns, rebates and discounts. Online games—subscription revenue The Group recognizes online subscription revenue players make use of in-game premium features. Players can access games free of charge, but may purchase virtual currency to acquire in-game premium features. Subscription revenue consists of revenues from (i) micro-transactions, and (ii) subscription fees from Internet cafés. Micro-transaction fees for Online games—royalties and license fees The Group licenses the right to distribute and market its local version of games to overseas licensees (“game licensing contracts”) in exchange for an initial prepaid license fee and/or guaranteed minimum royalty payments. The Group generally provides its licenses with post-contract customer support on its software products, consisting of technical support and occasional unspecified upgrades, or enhancements during the contract term. The Group determined that granting a license is not distinct from other promised services in the contracts, therefore, the promise to grant a license and those other promised services together are considered a single performance obligation. Revenue is recognized over time, from commercial launch date to expiration date of contract under IAS 18 whereas it is recognized from the date when performance obligation is performed for the first time to expiration date of contract under IFRS 15. When the running royalty revenue based on the contractual royalty rate and the actual revenue of the licensee exceeds the ratably recognized guaranteed minimum, the excess is then recognized as revenue and accounts receivable. Although the accounting framework changes, the accounting treatment under the new standard would not be substantially changed. Mobile games Mobile games revenue consists of revenues from (i) micro-transactions that users purchase in cases where the Group directly provides mobile game services to users; (ii) royalties and license fees from licensees to which the Group licenses the right to distribute, promote, and market its local version of mobile games in overseas countries (“game licensing contracts”); (iii) royalties and license fees from licensees to which the Group licenses the right to use the original game and intellectual property to develop new games and distribute, promote, and market those newly developed games (“IP licensing contracts”); and (iv) mobile games operation services for third parties. Revenues from (i) royalties and license fees from licensees for game licensing contracts are recognized in line with those of online games. (ii) When the Group defers revenue generated by micro-transactions, it estimates the game users’ life cycle and defers the remaining amount of virtual currency and items purchased by active users as of the end of the reporting period Other revenue Other revenue consists of revenue from sales of console games, game character merchandising, animation and other services, including sales of goods related to mobile phones and website development and operation services for third parties. Revenues from are recognized by measuring progress is measured by reference to the costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Incremental costs of obtaining contract The Group pays platform processing fees to operate mobile games on third party platforms. These fees are charged for the game users’ purchases in cash, and are considered as incremental cost of obtaining contracts with customer and are capitalized. The Group presents these costs as prepaid expense and amortizes them to costs of revenue at the same time when the related revenue of the services provided to the game users are recognized. Earnings per share Basic earnings per share is calculated by dividing profit attributable to owners of the Parent by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings by the weighted average number of c |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and Cash equivalents (1) Cash and cash equivalents as of December 31, 2019 and 2018 December 31, 2019 December 31, 2018 (In millions of Korean won) Deposits in banks W 52,941 W 48,005 Money market instruments 26,487 38,046 Total W 79,428 W 86,051 (2) The Group does not have any restricted cash and cash equivalents as of December 31, 2019 and 2018. |
Financial Instruments by Catego
Financial Instruments by Category | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Instruments [Abstract] | |
Financial Instruments by Category | 6. Financial instruments by category (1) Carrying amounts of financial instruments by category as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Financial assets at amortized cost Financial assets at amortized cost Financial assets (In millions of Korean won) Cash and cash equivalents W 79,428 W 86,051 Short-term financial instruments 39,500 9,500 Accounts receivables, net 32,253 60,664 Other receivables, net 56 255 Other current assets 233 191 Other non-current financial assets 1,770 1,494 Total W 153,240 W 158,155 Financial liabilities at amortized cost Financial liabilities at amortized cost Financial liabilities (In millions of Korean won) Accounts payables W 37,689 W 71,928 Accrued expenses 19 16 Other current liabilities 1,986 113 Other non-current liabilities 3,008 34 Total W 42,702 W 72,091 (2) Net income and expenses from financial instruments for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Financial assets at amortized cost (In millions of Korean won) Interest income W 1,626 W 819 W 554 Differences in foreign currency 1,267 159 231 Financial liabilities at amortized cost Interest expense (277 ) — — Differences in foreign currency (22 ) 105 (349 ) (3) Fair value hierarchy Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: all inputs other than quoted prices included in Level 1 that are observable (either directly that is, prices, or indirectly that is, derived from prices) for the asset or liability; • Level 3: unobservable inputs for the asset or liability. The fair value of financial instruments traded in an active market is determined based on the quoted market price as of the end of the reporting period. If the quoted prices are readily and regularly available through exchanges, sellers, brokers, industry groups, rating agencies or regulators and such prices represent actual market transactions that occur regularly between independent parties, they are considered active markets. These products are included in Level 1. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques use as much market observable information as possible and use the least amount of company-specific information. At this time, if all the significant input variables required to measure the fair value of a good are observable, the good is included in Level 2. If more than one significant input variable is not based on observable market information, the item is included in Level 3. The valuation techniques used to measure the fair value of a financial instrument include: - Market price or dealer price of a similar financial instrument - The fair value of derivative instruments is determined by discounting the amount to present value using the leading exchange rate as of the end of the reporting period For the other financial instruments, the Group applied other valuation techniques such as discounted cash flow, etc. For the financial assets and liabilities which carrying amount are reasonable approximation of fair value, those were excluded from fair value disclosure. |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade And Other Receivables [Abstract] | |
Accounts and Other Receivables | 7. Accounts and Other Receivables (1) Accounts and other receivables as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Accounts receivables Non-related party W 29,697 W 59,633 Related party 2,721 1,053 Less : Loss allowance (165 ) (22 ) Accounts receivables, net W 32,253 W 60,664 December 31, 2019 December 31, 2018 (In millions of Korean won) Other receivables Non-related party W 60 W 339 Related party — — Less : Loss allowance (4 ) (84 ) Other receivables, net W 56 W 255 (2) Changes in the loss allowance of accounts and other receivables during the years ended December 31, 2019, 2018 and 2017 are as follows: Accounts receivables 2019 2018 2017 (In millions of Korean won) Beginning balance W 22 W 123 W 126 (Reversal of) Bad debt expenses 281 55 (3 ) Write-off (138 ) (156 ) — Ending balance W 165 W 22 W 123 Other receivables 2019 2018 2017 (In millions of Korean won) Beginning balance W 84 W 46 W 45 (Reversal of) Bad debt expenses (34 ) 40 1 Write-off (46 ) (2 ) — Ending balance W 4 W 84 W 46 (3) ECLs and credit risk exposures for accounts and other receivables as of December 31, 2019 and 2018 are as follows: ① Accounts receivables As of December 31, 2019 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days 0.3 % W 31,146 W 97 More than 90 days ~ Less than 180 days 3.6 % 1,213 44 More than 180 days ~ Less than 270 days 21.1 % 30 6 More than 270 days ~ Less than 1 year 51.9 % 24 12 More than 1 year 100.0 % 6 6 Total W 32,419 W 165 As of December 31, 2018 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days — W 60,588 W — More than 1 year 22.3 % 98 22 Total W 60,686 W 22 ② Other receivables As of December 31, 2019 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days 4.3 % W 57 W 2 More than 90 days ~ Less than 180 days 32.8 % 2 1 More than 180 days ~ Less than 270 days 99.6 % 1 1 More than 270 days ~ Less than 1 year 100.0 % 1 — Total W 61 W 4 As of December 31, 2018 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days — W 254 W — More than 270 days ~ Less than 1 year 49.0 % 1 — More than 1 year 100.0 % 84 84 Total W 339 W 84 In assessing the recoverability of accounts the Group considers accounts and other The Group applies simplified approach for account and other receivables to measure the loss allowance at an amount equal to lifetime expected credit losses. To measure the expected credit losses, account and other receivables are grouped based on credit risk characteristics and the duration of past due balances. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls. The Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes the Group’s historical experience and informed credit assessment that includes forward-looking information. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and equipment | 8. Property and equipment (1) Details property and equipment as of December 31, 2019 and 2018 are as follows: December 31, 2019 Acquisition price Accumulated depreciation Book amount (In millions of Korean won) Computer and other equipment W 5,671 W (4,614 ) W 1,057 Furniture and fixture 1,984 (1,541 ) 443 Leasehold improvements 1,291 (1,074 ) 217 Right-of-use assets 8,627 (3,681 ) 4,946 Total W 17,573 W (10,910 ) W 6,663 December 31, 2018 Acquisition price Accumulated depreciation Book amount (In millions of Korean won) Computer and other equipment W 7,125 W (6,237 ) W 888 Furniture and fixture 1,924 (1,440 ) 484 Leasehold improvements 1,124 (998 ) 126 Total W 10,173 W (8,675 ) W 1,498 (2) Changes in property and equipment for the years ended December 31, 2019 2019 Computer and other equipment Furniture and fixture Leasehold improvements Right-of-use assets Total (In millions of Korean won) Beginning balance W 888 W 484 W 126 W — W 1,498 Adjustment from the introduction of IFRS 16 (199 ) 4,453 4,254 Acquisitions 711 211 163 2,637 3,722 Depreciation (344 ) (198 ) (71 ) (2,135 ) (2,748 ) Disposals — (58 ) (2 ) (15 ) (75 ) Foreign exchange differences 1 4 1 6 12 Ending balance W 1,057 W 443 W 217 W 4,946 W 6,663 2018 Computer and other equipment Furniture and fixture Leasehold improvements Total (In millions of Korean won) Beginning balance W 654 W 165 W 127 W 946 Acquisition 550 472 119 1,141 Depreciation (297 ) (133 ) (115 ) (545 ) Disposal (32 ) (22 ) (5 ) (59 ) Foreign exchange differences 13 2 — 15 Ending balance W 888 W 484 W 126 W 1,498 2017 Computer and other equipment Furniture and fixture Leasehold improvements Total (In millions of Korean won) Beginning balance W 231 W 103 W 144 W 478 Acquisition 617 165 117 899 Depreciation (174 ) (103 ) (98 ) (375 ) Disposal — (1 ) (37 ) (38 ) Foreign exchange differences (20 ) 1 1 (18 ) Ending balance W 654 W 165 W 127 W 946 (3) Classification of depreciation expenses in the statements of comprehensive income for the years ended December 31, 2019, 2019 2018 2017 (In millions of Korean won) Cost of revenues W 1,795 W 260 W 182 Selling, general and administrative expenses 761 233 150 Research and development 192 52 43 Total W 2,748 W 545 W 375 (4) As of the end of the reporting period, there are no property and equipment of the Group that are pledged as collateral for the Group’s debts . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Intangible Assets [Abstract] | |
Intangible Assets | 9. Intangible assets (1) Details of intangible assets as of December 31, 2019 and are as follows December 31, 2019 (In millions of Korean Won) Acquisition price Accumulated depreciation(*) Carrying amount Software W 12,316 W (11,172 ) W 1,144 Industrial property rights 674 (488 ) 186 Other intangible assets 3,820 (3,433 ) 387 Total W 16,810 W (15,093 ) W 1,717 December 31, 2018 (In millions of Korean Won) Acquisition price Accumulated depreciation(*) Carrying amount Software W 11,341 W (10,350 ) W 991 Industrial property rights 533 (461 ) 72 Other intangible assets 3,410 (3,310 ) 100 Total W 15,284 W (14,121 ) W 1,163 (*) Accumulated depreciation includes the amount of accumulated impairment loss. (2) Changes in intangible assets for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 991 W 72 W 57 W 43 W 1,163 Acquisitions 951 153 — 410 1,514 Amortization (807 ) (27 ) (5 ) (66 ) (905 ) Disposals (8 ) (12 ) — — (20 ) Impairment(*) — — (52 ) — (52 ) Foreign exchange differences 17 — — — 17 Ending balance W 1,144 W 186 W — W 387 W 1,717 (*) The Group recognized Korean Won 52 2018 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 64 W 77 W 843 W 52 W 1,036 Acquisitions 1,523 16 78 — 1,617 Amortization (597 ) (21 ) (241 ) (9 ) (868 ) Disposals — — — — — Impairment(*) — — (623 ) — (623 ) Foreign exchange differences 1 — — — 1 Ending balance W 991 W 72 W 57 W 43 W 1,163 (*) The Group recognized Korean Won 623 2017 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 115 W 89 W — W 30 W 234 Acquisitions 36 12 1,104 25 1,177 Amortization (87 ) (24 ) (31 ) (3 ) (145 ) Disposals — — — — — Impairment(*) — — (230 ) — (230 ) Foreign exchange differences — — — — — Ending balance W 64 W 77 W 843 W 52 W 1,036 (3) Classification of amortization in the statements of comprehensive income for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Cost of revenues W 101 W 251 W 40 Selling, general and administrative expenses 745 581 68 Research and development 59 36 37 Total W 905 W 868 W 145 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Defined Benefit Plans [Abstract] | |
Employee Benefits | 10. Employee benefits The expenses recognized in relation to defined contribution plan for the years ended December 31, 2019, 2018 and 2017 are Won 1,812 546 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Commitments And Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | 11. Commitments and contingent liabilities The Parent Company has license agreements with GungHo Online Entertainment, Inc. and and and receives of each licensee’s revenues . In March 2016, the Parent Company them in China for five years. |
Capital
Capital | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Capital | 12. Capital (1) Details of common shares as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In Korean won and number of shares) Number of authorized shares 40,000,000 40,000,000 40,000,000 Value per share W 500 W 500 W 500 Number of shares issued 6,948,900 6,948,900 6,948,900 Common shares W 3,474,450,000 W 3,474,450,000 W 3,474,450,000 (2) Details of capital surplus as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Additional paid in capital W 25,322 W 25,335 W 25,358 Other capital surplus 1,806 1,806 1,806 Total W 27,128 W 27,141 W 27,164 (3) Details of other components of equity as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Foreign currency translation adjustments W 274 W 138 W (40 ) (4) Details of retained earnings as of December 31, 2019, 2018 and 2017 December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Unappropriated retained earnings W 84,668 W 45,405 W 13,962 (5) According to Parent company's Articles of Incorporation, Parent company may issue 2,000,000 shares of preferred stock without voting rights, and there are no preferred shares issued as of December 31, 2019, 2018 and 2017. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Revenue from Contracts with Customers | 13. Revenue from Contracts with Customers (1) Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows: 2019 2018 (In millions of Korean won) Service contract Subscription contract W 310,006 W 260,888 Licensing contract 34,219 18,054 Others 16,742 7,828 360,967 286,770 Timing of satisfaction of performance obligations At a point in time 175 8 Over time 360,792 286,762 W 360,967 W 286,770 (2) Accounts receivables, incremental costs of obtaining a contract, and contract liabilities related to contracts with customers December 31, 2019 December 31, 2018 (In millions of Korean won) Accounts receivables W 32,253 W 60,664 Incremental costs of obtaining a contract (Prepaid expenses) 998 2,036 Contract liabilities (Deferred revenue) Subscription revenue 8,742 12,017 Royalties and Licensing fees 1,403 7,223 Website & Application development 701 834 W 10,846 W 20,074 (3) Changes in contract liabilities for the years ended December 31, 2019 and 2018 are as follows: 2019 2018 (In millions of Korean won) Balance at January 1 W 20,074 W 22,681 Increase related to subscription revenue 66,232 12,017 Increase related to royalties and licensing fees — 540 Increase related to website & application development contract 5,038 834 Decrease upon satisfaction of performance obligations - subscription revenue (69,507 ) (12,409 ) Decrease upon satisfaction of performance obligations -royalties and licensing fees (5,407 ) (3,066 ) Decrease due to termination of contract (413 ) (495 ) Decrease upon satisfaction of performance obligations - website & application development (5,171 ) (28 ) Balance at December 31 W 10,846 W 20,074 The amount of revenue recognized from previous period’s contract liabilities satisfied during the year ended December 31, 2019 is Korean Won 16,476 million. (4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Subscription revenue W 8,742 W 12,017 Royalties and Licensing fees 1,403 7,223 Website & Application development 701 834 The Group’s management expects to recognize 99% (Korean Won 10,748 million) of the transaction price allocated to contracts that have not been performed as of December 31, 2019 as revenue within 12 months. The remaining 1% (Korea Won 98 million) is expected to be recognized as revenue thereafter. (5) Details of incremental costs of obtaining a contract recognized as assets as of and for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Incremental costs of obtaining a contract W 998 W 2,036 2019 2018 Amortization costs recognized as cost of revenues W 2,036 W 2,231 |
Classification of Expenses By N
Classification of Expenses By Nature | 12 Months Ended |
Dec. 31, 2019 | |
Expense By Nature [Abstract] | |
Classification of Expenses By Nature | 14. Classification of expenses by nature Expenses classified by nature for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Advertising expenses W 14,948 W 17,263 W 12,525 Fees and commissions 249,210 195,173 83,356 Lease expenses 1,496 2,604 2,205 Outsourcing expenses 7,875 6,176 5,189 Salaries 26,935 23,137 17,847 Expenses related to defined contribution plans 1,807 1,546 1,219 Employee benefits 3,026 2,655 2,169 Depreciation 2,748 545 375 Amortization 905 868 145 Other expenses 3,214 2,915 2,455 Total(*) W 312,164 W 252,882 W 127,485 (*) Classification of expenses by nature includes total cost of revenues, selling, general and administrative expenses and research and development in the consolidated statement of comprehensive income. |
Selling, General and Administra
Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Selling General And Administrative Expense [Abstract] | |
Selling, General and Administrative Expenses | 15. Selling, general and administrative expenses Details of the selling, general and administrative expenses for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Advertising expenses W 14,948 W 17,263 W 12,525 Fees and commissions 7,262 5,727 6,594 Lease expenses 665 941 686 Salaries 8,643 7,080 5,468 Expenses related to defined contribution plans 455 387 357 Employee benefits 1,253 1,140 919 Depreciation 761 233 150 Amortization 745 581 68 Other expenses 2,141 1,468 1,245 Total W 36,873 W 34,820 W 28,012 |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expense [Abstract] | |
Other Income and Expenses | 16. Other income and expenses (1) Details of other income for the years ended December 31, 2019 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Gain on disposal of property and equipment W 3 W 16 W 2 Reversal of other bad debt allowances 35 — — Miscellaneous gain 315 106 163 Total W 353 W 122 W 165 (2) Details of other expenses 2019 2018 2017 (In millions of Korean won) Loss on retirement and disposal of property and equipment W — W 5 W 37 Impairment loss on intangible assets 486 623 230 Miscellaneous loss 7 14 1 Total W 493 W 642 W 268 |
Finance Income And Costs
Finance Income And Costs | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Finance Income And Costs [Abstract] | |
Finance Income and Costs | 17. Finance income and costs Details of finance income and costs for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Finance income Interest income W 1,626 W 819 W 554 Unrealized foreign currency gain 119 81 288 Gain on foreign currency transaction 2,442 1,173 1,033 Total W 4,187 W 2,073 W 1,875 Finance costs Unrealized foreign currency loss W 267 W 99 W 671 Loss on foreign currency transaction 1,050 891 768 Others 277 12 13 Total W 1,594 W 1,002 W 1,452 |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2019 | |
Major Components Of Tax Expense Income [Abstract] | |
Income Tax Expense | 18. Income tax expense (1) Details of income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Current tax on profit for the year W 11,775 W 7,430 W 4,180 Deferred tax expense (benefit) (249 ) (4,377 ) (3,036 ) Income tax expense W 11,526 W 3,053 W 1,144 (2) The differences between the tax expense on the Group’s profit before tax and the amount that would arise using the statutory tax rate applicable to profits of the Group for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Profit before income tax W 51,256 W 34,439 W 14,458 Income tax using the statutory tax rate of each country 12,063 8,994 3,232 Adjustments Expenses not deductible for tax purpose 42 62 136 Tax amounts paid in a foreign country 4,854 5,196 3,963 Changes in recognition of previously unrecognized deferred tax assets (4,347 ) — — Utilization of previously unrecognized deferred tax asset — (5,347 ) (3,307 ) Change in deferred tax due to carry-forward deficits (33 ) (6,265 ) (3,036 ) Effect of change foreign currency exchange rate (12 ) (221 ) 495 Tax credit (543 ) — — Others (498 ) 634 (339 ) Total adjustments (537 ) (5,941 ) (2,088 ) Income tax expense W 11,526 W 3,053 W 1,144 Effective tax rate 22 % 9 % 8 % (3) Details of the changes in deferred income tax assets (liabilities) for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Beginning balance Increase (decrease) Ending balance Beginning balance Increase (decrease) Ending balance (In millions of Korean won) (In millions of Korean won) Deferred income tax on temporary differences Property and equipment W 25 W (18 ) W 7 W — W 25 W 25 Intangible assets 238 (17 ) 221 — 238 238 Other non-current assets 8 96 104 49 (41 ) 8 Accounts payables 531 996 1,527 — 531 531 Accrued expenses — 39 39 — — — Deferred revenue 60 614 674 180 (120 ) 60 Allowance for doubtful account 264 11 275 — 264 264 Other non-current liabilities 46 — 46 39 7 46 Investments in subsidiaries — 389 389 2,747 (2,747 ) — Lease — 1 1 — — — Foreign taxes paid (4 ) 4 — — (4 ) (4 ) Others (21 ) (4 ) (25 ) (120 ) 99 (21 ) Sub Total 1,147 2,111 3,258 2,895 (1,748 ) 1,147 Deferred tax due to carry-forward deficits 1,951 (1,918 ) 33 108 1,843 1,951 Deferred tax due to tax credit carry-forward 4,315 56 4,371 33 4,282 4,315 Deferred tax assets W 7,413 W 249 W 7,662 W 3,036 W 4,377 W 7,413 The future realizability of deferred tax assets is reassessed by taking into consideration various factors such as the Group's performance, the overall economic environment and industry outlook, expected future earnings and deductible period of tax credits carry-forward. As of December 31, 2019, the Group has recognized deferred tax assets related to temporary differences, tax loss carryforward and tax credit carryforwards, which can be utilized based on the likelihood of future taxable income. This amount may change if the estimate of future taxable income changes. (4) Details of unused tax loss carryforwards and unused tax credit carryforwards that are not recognized as deferred income tax assets as of December 31, 2019 are as follows: Year of expiration Unused loss carryforwards Unused tax credit carryforwards 2020 W — W 212 2021 — 176 2022 — 163 2023 1,045 501 2024 2,662 518 After 2024 7,604 — Total W 11,311 W 1,570 As of December 31, 2019 and 2018, the Group did not recognize deferred income tax asset for the temporary 14,350 and other temporary differences of Won 895 million and Won 18,453 million, respectively, as such temporary differences are not expected to be utilized in the foreseeable future. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings per Share Basic earnings per share is calculated by dividing the profit attributable to owners of the Parent by the weighted average number of common shares outstanding each year. (1) Basic earnings per share 2019 2018 2017 (In millions of Korean won, except per share data) Profit attributable to owners of the Parent W 39,876 W 31,443 W 13,319 Weighted average outstanding shares of common shares 6,948,900 6,948,900 6,948,900 Basic earnings per share W 5,738 W 4,525 W 1,917 (2) Diluted earnings per share As of and for the years ended December 31, 2019, 2018 and 2017, the Company does not have dilutive potential ordinary shares outstanding. Accordingly, the diluted earnings per share for the years ended December 31, 2019, 2018 and 2017 are the same as the basic earnings per share. |
Statements of Cash Flows
Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Cash Flow Statement [Abstract] | |
Statements of Cash Flows | 20 . Statements of cash flows (1) Cash generated from operations for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Profit for the year W 39,730 W 31,386 W 13,314 Depreciation expense 2,748 545 375 Amortization expense 905 868 145 Bad debt expenses 281 151 74 Unrealized foreign currency loss 267 99 671 Interest expense 277 — — Loss on retirement and disposal of property and equipment — 5 37 Impairment losses on intangible assets 486 623 230 Post-employment benefit expense (Reversal of allowance for retirement benefit) (4 ) 50 164 Income tax expense 11,526 3,053 1,144 Unrealized foreign currency gain (119 ) (81 ) (288 ) Interest income (1,626 ) (819 ) (554 ) Gain on disposal of property and equipment (3 ) (16 ) (2 ) Reversal of other bad debt allowances (34 ) — — Gain on disposal of intangible assets (1 ) — — Change in accounts receivables 30,143 (18,573 ) (27,786 ) Change in other receivables 232 406 12 Change in prepaid expenses 1,981 544 (1,390 ) Change in advance payments (204 ) — — Change in other current assets (556 ) 192 (400 ) Change in other non-current assets (1,860 ) (1,137 ) (449 ) Change in accounts payables (37,145 ) 27,319 35,046 Change in deferred revenue (9,631 ) (2,707 ) 1,980 Change in withholdings (397 ) 580 1,239 Change in accrued expenses 140 (7 ) 187 Change in other current liabilities 113 (13 ) 68 Change in long-term deferred revenue — 100 4,111 Change in other non-current liabilities (463 ) — 261 Change in advance receipt 434 — — Total W 37,220 W 42,571 W 28,189 (2) Significant non-cash transactions for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Reclassification of advance payments to intangible assets W 120 W — W — Increase of accounts payables due to software purchasing 33 226 — Additions of right-of-use assets 2,637 — — (3) Changes in liabilities arising from financing activities for the year ended December 31, 2019, are as follows: Lease liabilities (In millions of Korean won) Beginning of the year W — Adjustment due to adoption of IFRS 16 4,401 Beginning of the year after adjustment 4,401 Cash flows from financing activities – Repayment of lease liabilities (2,034 ) Cash flows from operating activities – Interest paid (277 ) Non-cash transactions Acquisitions – leases 2,637 Interest expense 277 Early termination of leases (15 ) Exchange differences 5 Ending of the year W 4,994 |
Lease
Lease | 12 Months Ended |
Dec. 31, 2019 | |
Presentation Of Leases For Lessee [Abstract] | |
Lease | 21. Lease The Group leases offices, equipment and others. The leases typically run for a period of 1 ~5 years, with an option to renew or terminate the lease after that date. There are no restrictions or covenants imposed to leases, but the lease assets shall not be provided as collateral for borrowings. (1) Details of right-of-use assets and lease liabilities recognized in the consolidated statement of financial position December 31, 2019 (In millions of Korean won) Right-of-use assets(*1) Offices W 3,642 Vehicles 266 Equipment 1,038 Total W 4,946 Lease liabilities(*2) Current 1,986 Non-current 3,008 Total W 4,994 (*1) Right-of-use assets are (*2) Lease liabilities are (2) Changes in right-of-use assets for the year ended December 31, 2019 are as follows: 2019 Offices Vehicles Equipment Total (In millions of Korean won) Balance as of January 1, 2019 W 2,752 W 53 W 1,648 W 4,453 Depreciation (901 ) (92 ) (1,142 ) (2,135 ) Additions 1,791 320 526 2,637 Removal — (15 ) — (15 ) Translation differences — — 6 6 Balance as of December 31, 2019 W 3,642 W 266 W 1,038 W 4,946 (3) Details of amounts recognized in the consolidated statement of profit or loss for the year ended December 31, 2019 are as follows: 2019 (In millions of Korean won) Interest expense relating to lease liabilities (included in finance cost) W 277 Expense relating to short-term leases 322 Expense relating to leases of low-value assets that are not short-term leases 10 (4) Details of amounts recognized in the consolidated statement of Cash flows for the 2019 (In millions of Korean won) Total cash outflows of leases W 2,644 |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Instruments [Abstract] | |
Financial Risk Management | 22. Financial risk management The Group’s operating activities expose itself to a variety of financial risks: market risk , credit risk and liquidity risk risk management program focuses on any adverse effects on its financial performance. (1) Capital Risk Management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so the Group can continue to provide returns and benefits for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital on the basis of the debt ratio. This ratio is calculated as total debt divided by total capital. The debt ratios as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Total liabilities W 59,659 W 97,622 Total equity 115,766 75,552 Debt-to-equity ratio 52 % 129 % (2) Market risk (1) Foreign exchange risk The Group is exposed to foreign exchange risk arising from royalty revenues and commission payment primarily with respect to the US dollar and etc. The Group’s financial assets and liabilities are exposed to foreign currency risk as of December 31, 2019 and 2018 are as follows: December 31, 2019 Financial assets Financial liabilities Financial assets Financial liabilities (In each foreign currency) (In millions of Korean won) USD 8,100,729 5,775,721 W 9,403 W 6,696 JPY 456,300,430 340,468,613 4,854 3,621 EUR 338,598 1,000 439 1 IDR 12,955,000 17,023,944 1 1 THB 28,510 7,379 1 — TWD 29,236,669 5,567,672 1,125 214 VND 9,270,000 3,243,600 — — GBP — 5,625 — 9 HKD 368,048 — 55 — Total W 15,878 W 10,542 December 31, 2018 Financial assets Financial liabilities Financial assets Financial liabilities (In each foreign currency) (In millions of Korean won) USD 9,623,496 7,486,441 W 10,761 W 8,373 JPY 103,945,453 1,042,657 1,053 11 EUR 359,772 — 460 — IDR 172,822,025 3,098,944 13 — THB 34,633 173,389 1 6 TWD 36,311,172 6,597,223 1,328 241 VND 9,270,000 3,243,600 1 — HKD 2,731 — — — Total W 13,617 W 8,631 The Group measures foreign exchange risk as a 10% fluctuation in the exchange rate of each foreign currency, which reflects the management's assessment of the risk of exchange rate fluctuation that can be reasonably occur. The impact of a 10% fluctuation in foreign currency exchange rates on the Company’s monetary assets and liabilities as of December 31, 2019, and 2018 are as follows: December 31, 2019 December 31, 2018 10% 10% Decrease 10% Increase 10% Decrease (In millions of Korean won) USD W 271 W (271 ) W 239 W (239 ) JPY 123 (123 ) 104 (104 ) Others 140 (140 ) 156 (156 ) Total W 534 W (534 ) W 499 W (499 ) The sensitivity analysis is based on monetary assets and liabilities denominated in foreign currencies other than the functional currency as of the end of the reporting period. (2) Interest rate risk There are no borrowings under variable interest rate conditions as of December 31, 2019 and 2018. (a) Price risk There are no assets and liabilities exposed to price risk as of the end of the reporting period. (3) Credit risk Credit risk arises from normal trading and investing activities and occurs when a customer or a counterparty fails to comply with the terms of the contract. In order to manage these credit risks, the Company regularly evaluate the creditworthiness of our customers based on their financial condition, past experience and other factors. The carrying amount of a financial asset represents the maximum exposure to credit risk. The maximum exposure to credit risk of the Company December 31, 2019 December 31, 2018 (In millions of Korean won) Cash and cash equivalents W 79,428 W 86,051 Short-term financial instruments 39,500 9,500 Accounts receivable 32,253 60,664 Other receivable 56 255 Other current assets 233 191 Other non-current financial assets 1,770 1,494 Total W 153,240 W 158,155 Cash and cash equivalents and short-term financial instruments are deposited in financial institutions with strong credit rating. Accounts receivables are mainly due from payment processing companies and platform service providers, which in the Group believes have low levels of credit risk. (4) Liquidity risk Liquidity risk management includes the maintenance of sufficient cash and marketable securities, the availability of funds from appropriately committed credit lines, and the ability to settle market positions. The following table summarizes the financial liabilities of the Company by maturity according to the remaining period from the end of the reporting period to the contractual maturity date. December 31, 2019 Carrying value Less than 3 months 3 months ~ 1 year 1~2 years 2~3 years 3~5 years Total (In millions of Korean won) Accounts payable W 37,689 W 21,374 W 16,122 W 193 W — W — W 37,689 Accrued expenses 1,175 1,175 — — — — 1,175 Other liabilities (*) 4,994 598 1,653 1,780 1,029 428 5,488 Total W 43,858 W 23,147 W 17,775 W 1,973 W 1,029 W 428 W 44,352 (*) Other liabilities as at December 31, 2019 consist of lease liabilities. December 31, 2018 Carrying value Less than 3 months 3 months ~ 1 year More than 1 year Total (In millions of Korean won) Accounts payable W 71,928 W 70,381 W 1,547 W — W 71,928 Accrued expenses 1,031 1,031 — — 1,031 Other liabilities 147 — 113 34 147 Total W 73,106 W 71,412 W 1,660 W 34 W 73,106 The cash flows above are not discounted and the amount due within 12 months is the same as the carrying amount since the effect of the discount is not material. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Segments [Abstract] | |
Segment information | 23. Segment information (1) The Company’s operating segments The Group determines the operating segments by establishing strategic decisions. Chief operating decision maker (“CODM”) reviews operating profit by each segment in order to make decisions regarding the resources to be allocated to the segment and to evaluate the performance of the segment. The reportable segments of the Group are in line with the organizational structure and CODM’s review of operations, and include mobile, online and others. The accounting policies of the operating segments are the same as those described in the significant accounting policies. The Group assesses the performance of its operating segments based on its operating profit or loss, which does not differ from operating profit reported on the statement of comprehensive income except for inter-segment transactions. Total assets and liabilities for each segment are not reported to CODM. The segment information for the years ended December 2019 Revenue Depreciation Amortization Operating profit(*2) (In millions of Korean won) Online W 48,182 W 1,401 W 7,754 Mobile 346,878 1,145 38,655 Others 19,352 1,107 562 Sub total 414,412 3,653 46,971 Inter-segment eliminations(*1) (53,445 ) — 1,692 Total W 360,967 W 3,653 W 48,663 2018 Revenue Depreciation Amortization Operating profit(*2) (In millions of Korean won) Online W 41,288 W 238 W 4,286 Mobile 257,364 473 24,795 Others 9,526 715 1,086 Sub total 308,178 1,426 30,167 Inter-segment eliminations(*1) (21,408 ) (12 ) 3,201 Total W 286,770 W 1,414 W 33,368 2017 Revenue Depreciation Amortization Operating profit(loss)(*2) (In millions of Korean won) Online W 53,790 W 222 W 14,536 Mobile 87,194 268 (2,476 ) Others 7,532 36 993 Sub total 148,516 526 13,053 Inter-segment eliminations(*1) (6,893 ) (6 ) 982 Total W 141,623 W 520 W 14,035 (* 1) The Group reflects inter-segment eliminations as adjustments. (* 2) Other profit or loss items that do not constitute operating profit (loss) are not separately disclosed because they are not reviewed by the chief operating decision maker by operating segment. (2) Revenue from external customers by country for the 2019 2018 2017 (In millions of Korean won) Korea W 45,273 W 80,814 W 28,708 Taiwan 52,118 98,210 76,121 Japan 28,469 9,767 9,491 The United States of America 55,062 10,572 7,774 Thailand 62,043 43,846 6,569 The Philippines 30,951 15,539 883 Indonesia 22,355 9,359 1,075 Other 64,696 18,663 11,002 Total W 360,967 W 286,770 W 141,623 (*) Revenue was attributed to the country based on the customer’s location. Non-Current assets by geographical regions as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Domestic W 5,732 W 3,054 W 2,114 Overseas 4,170 1,045 468 Total W 9,902 W 4,099 W 2,582 (*) The amounts are exclusive of financial assets and deferred tax assets. (3) No individual external customers accounted for more than 10% of consolidated revenue for the years ended December 31, 2019, 2018 and 2017. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Transactions with Related Parties | 24. Transactions with related parties (1) Related parties of the Group include entities and individuals capable of exercising control or significant influence over the Group. Related parties include GungHo Online Entertainment, Inc. (the controlling shareholder with 59.31% common shares), its subsidiaries, members of board of directors, executives with strategic responsibilities and their immediate families. (2) Account balances with related parties Balances of receivables and payables to related parties as of December 31, 2019 and 2018 are as follows : December 31, 2019 December 31, 2018 (In millions of Korean won) Related parties classification Entity Receivable Payables Receivable Payables Parent company Gung-Ho Online Entertainment, Inc. W 2,722 W 74 W 1,053 W 3 (3) Transactions with related parties The details of transaction with related parties for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Related parties classification Entity Sales Purchase Sales Purchase Sales Purchase Parent company Gung-Ho Online Entertainment, Inc. W 27,484 W 60 W 10,516 W 3 W 10,529 W 36 (4) Other transactions with related parties No financing transactions were made with related parties for the years ended December 31, 2019, 2018 and 2017. (5) Key management personnel compensation The compensation for the key management personnel (registered directors), for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Salary W 866 W 690 W 629 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by International Accounting Standard Board (“IASB”). These consolidated financial statements were approved by the board of directors on April 24, 2020. This is the first set of the Group’s annual financial statements in which IFRS 16 Leases has been applied. The related changes to significant accounting policies are described in Note 3. |
Basis of measurement | Basis of measurement The consolidated financial statements have been prepared on the historical cost basis. |
Use of judgements and estimates | Use of judgements and estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, 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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) Critical judgements Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes for classification of leases etc. (ii) Deferred revenue The Group sells virtual currency and items that can be used in online and mobile games to game users. For online games, the entire amount of unused virtual currency is deferred for the period during which the refundable obligation is to be performed, and for items, revenue is recognized by deferring to the expected period of use estimated in consideration of the item’s attributes. For mobile games, when the Group defers revenue generated by micro-transactions, it estimates the game users’ life cycle and defers the remaining amount of virtual currency and items without an effective period purchased by active users as of the end of the reporting period. Revenues for items with effective period are recognized on a straight-line basis over the effective period. The Group considers a user as an active user if the period between the time of the user’s most recent access of the game and the period end equals or is shorter than the estimated game users’ life cycle. In order to estimate the expected period of use of items and mobile game users’ life cycle, it estimates the period of use by analyzing the customer’s behavior and consumption patterns such as payment and access, and periodically examines whether these estimates change. (iii) Deferred tax assets When the Group assessed the realizability of deferred tax assets, The Group considered its performance, general economic environment, projected future taxable income, and periods available to utilize tax loss carryforwards and tax credit carryforwards. The Group periodically monitors the estimates used in assessing the realizability of the deferred tax assets. The amount of deferred tax assets may be changed if estimated future taxable income during the carryforward periods was changes. |
Changes in Accounting Policies and Disclosures | New and amended standards adopted by the Company The Group has applied the following standards and amendments for the first time for the annual reporting period commencing January 1, 2019. Enactment of IFRS 16 Leases The Group applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognized in retained earnings at January 1, 2019 (date of initial application). Accordingly, the comparative information presented for 2018 is not restated – i.e. it is presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been applied to comparative information. (i) Definition of a lease Previously, the Group determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determining whether an Arrangement contains a Lease. The Group now assesses whether a contract is or contains a lease based on the definition of a lease under IFRS 16. On transition to IFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Group applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after January 1, 2019. (ii) As a lessee As a lessee, the Group leases many assets including offices and equipment. The Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for most of these leases – i.e. these leases are on-balance sheet. At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone price. However, for leases of property, the Group has elected not to separate non-lease components and account for the lease and associated non-lease components as a single lease component. Previously, the Group classified property leases as operating leases under IAS 17. On transition, for these leases, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate as at January 1, 2019. The Group used a number of practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17. In particular, the Group: • did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application; • did not recognise right-of-use assets and liabilities for leases of low value assets; • excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application; and • used hindsight when determining the lease term. (iii) Impact on financial statements On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities. Additionally, the impact on transition is summarized below. January 1, 2019 (In millions of Korean won) Right-of-use assets(*1) Offices W 2,752 Vehicles 53 Computer and other equipment 1,648 Total W 4,453 Lease liabilities(*2) Current 1,672 Non-current 2,729 Total W 4,401 (*1) Right-of-use assets are included in ‘Property and equipment’ in the consolidated statement of financial position. (*2) Lease liabilities are included in ‘Other current liabilities’ and ‘Other non-current liabilities’ in the consolidated statement of financial position. On the adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IFRS 17. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The lessee’s weighted average incremental borrowing rate applied to lease liabilities on January 1, 2019 is 6.59%. January 1, 2019 (In millions of Korean won) Operating lease commitments disclosed as at December 31, 2018 W 5,137 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (472 ) Exemptions on low-value leases (5 ) Exemptions on short-term leases (737 ) Adjustments on evaluation of extension and termination options under IFRS 16 478 Lease liability recognized as at January 1, 2019 W 4,401 Current lease liabilities W 1,672 Non-current lease liabilities 2,729 W 4,401 Amendments to IFRS 9 Financial Instruments – Prepayment Features with Negative Compensation Amendments made to IFRS 9 Financial Instruments enable entities to measure certain financial assets containing prepayment features with negative compensation at amortized cost. The amendments also clarified that when a modification of a financial liability measured at amortized cost does not result in the derecognition, a modification gain or loss is recognized in profit or loss. The amendments did not have a significant impact on the Consolidated financial statements. Amendments to IAS 28 Investments in Associates and Joint Ventures – Long-term Interests in Associates and Joint Ventures The amendments clarifies that an entity applies IFRS 9 to financial instruments in an associate or joint venture to which the equity method is not applied. These include impairment of long-term interests that, in substance, form part of the entity’s net investment in an associate or joint venture for which IFRS 9 should take precedence. The amendment does not have a significant impact on the consolidated financial statements. Enactment of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments IFRIC Interpretation 23 clarifies how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment, and includes guidance on how to determine whether each uncertain tax treatment is considered separately or together. It also presents examples of circumstances where a judgement or estimate is required to be reassessed. The adoption of IFRIC Interpretation 23 did not have a significant impact on the consolidated financial statements. Annual Improvements (i) Amendments to IFRS 11 Joint Agreements The amendments clarify that when a party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business. In such cases, previously held interests in the joint operation are not remeasured. The amendments did not have a significant impact on the consolidated financial statements. (ii) Amendments to Paragraph 57A of IAS 12 Income Tax The amendment is applied to all the income tax consequences of dividends and requires an entity to recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events. The amendment did not have a significant impact on the consolidated financial statements. (iii) Amendment to IAS 23 Borrowing Costs The amendments clarify that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use (or sale), it becomes part of general borrowings. The amendment did not have a significant impact on the consolidated financial statements. |
Consolidation | Consolidation The Company has prepared the consolidated financial statements in accordance with IFRS 10 Consolidated Financial Statements Subsidiaries are all entities over which Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases. The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recoded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase. Intercompany transactions, balances and unrealized gains on transactions between consolidated companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Segment Reporting | Segment Reporting Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 23). The CEO, as the chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments. |
Cash and cash equivalents | Cash and cash equivalents include on hand, held at call with financial institutions, other investments with original maturities of or less that are readily convertible to known amounts of cash |
Financial Assets | Financial Assets Classification At initial recognition, the Group classifies its financial assets in the following measurement categories: • measured at fair value through profit or loss • measured at fair value through other comprehensive income, and • measured at amortized cost. The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows. For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of equity instruments not elected as equity investment at fair value through other comprehensive income will be recognized in profit or loss. Measurement At initial recognition, the Group measures a financial asset at its fair value plus, for financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. (i) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories: • Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. • Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘finance income’ using the effective interest rate method. Foreign exchange gains and losses and impairment losses are presented in ‘finance income or costs’. • Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘finance income or costs’ in the year in which it arises. (ii) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments, which are held for long-term investment or strategic purpose, in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continue to be recognized in profit or loss as ‘finance income’ when the right to receive payments is established. Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘other income or expenses’ in the statement of profit or loss as applicable. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value. Impairment The Group recognizes loss allowances for expected credit losses (“ECLs”) on: • financial assets measured at amortized cost; • debt investments measured at FVOCI; and • contract assets under IFRS 15. The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs: • debt securities that are determined to have low credit risk at the reporting date; and • other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition . Loss allowances for accounts and other receivables (including lease receivables) and contract assets are always measured at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment that includes forward-looking information. The Group considers a financial asset to be in default when: • the debtor is unlikely to pay its obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held); or • the financial asset is more than 90 days past due. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset. At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in OCI. Recognition and Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. Offsetting of financial instruments Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty. |
Property and equipment | Property and equipment Property and equipment are initially measured cost. The of property and equipment expenditures arising directly from the construction or acquisition of the asset, any costs bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs item on which it is located. Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows: Computer and equipment 4 years Furniture and fixtures 4 years Leasehold improvements 4 years Depreciation method, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The change is accounted for as a change in an accounting estimate. |
Intangible assets | Intangible assets Intangible assets, except for goodwill, are initially recognized at its historical cost, and carried at cost less accumulated amortization and accumulated impairment losses. The Group amortizes intangible assets with a definite useful life using the straight-line method over the following periods: Software 1 ~ 3 years Industrial property rights 10 years License 2 years Other intangible assets 3 years Expenditure on research activities is recognized expenses as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in expenses as incurred. The Group entered into a game licensing agreement with a number of third parties to gain exclusive rights to the games developed by other companies. The license fee payments are recognized as other intangible assets and amortized over the term of the contract. |
Impairment of Non-financial Assets | Impairment of Non-financial Assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets, incremental costs of obtaining a contract, costs to fulfil a contract, employee benefit related assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts The recoverable amount of an asset or cash generating unit (“CGU”) is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount. |
Leases | Leases The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately. ① Policies applicable from January 1, 2019 At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. i) As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component. The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rates. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group other current liabilities’ ‘other non-current liabilities’ consolidated The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. ii) As a lessor At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the contract. The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue.’ Generally, the accounting policies applicable to the Group as a lessor in the comparative period were not different from with IFRS 16. ② Policy applicable before January 1, 2019 To classify each lease, the Group made i) As a lessor Lease income from operating leases is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred by the lessor in negotiating and arranging an operating lease is added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the lease income. ii) As a lessee Lease payments under an operating lease were recognized as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit. Contingent rents were charged as expenses in the periods in which they are incurred. Lease incentives received were recognized as liabilities and then as deduction of expense over the term of the lease unless another systematic basis is more representative of the time pattern of the user’s benefit. |
Financial Liabilities | Financial Liabilities Classification and measurement The Group’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortized cost and present as ‘account payables,’ ‘other current liabilities,’ and ‘other non-current liabilities’ in the consolidated statement of financial position. Derecognition Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. |
Provisions and contingencies | Provisions and contingencies Provisions for legal claims, service warranties and make good obligations Group obligation an outflow of resources the amount reliably estimated Provisions are measured at the present value of management's best estimate of the required to settle the present obligation at the end of the reporting period. The discount rate used reflects current market assessments of the time value of money and the risks specific to the liability. In addition, when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a disclosure regarding the contingent liabilities is made in the notes to the financial statements. |
Foreign Currency Translation | Foreign Currency Translation Functional and presentation currency Items included in the of each Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the end of reporting period. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and translated at the exchange rates at the end of reporting date. When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling interest. In any other partial disposal of a foreign operation, the relevant proportion is reclassified to profit or loss. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rate at the reporting date are generally recognized in profit or loss. They are recognized in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of net investment hedges, or are attributable to monetary part of the net investment in a foreign operation. Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss. |
Statement of cash flows | Statement of cash flow s The Group has elected to present cash flows from operating activities using the indirect method. Cash flows denominated in a foreign currency are reported using average exchange rate during the fiscal year. |
Revenue from contracts with customers | Revenue from contracts with customers The Group engages in game licensing, IP licensing and game publishing businesses. Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or rendering of services arising from the normal course of the business. Amounts recognized as revenue are net of value added taxes, returns, rebates and discounts. Online games—subscription revenue The Group recognizes online subscription revenue players make use of in-game premium features. Players can access games free of charge, but may purchase virtual currency to acquire in-game premium features. Subscription revenue consists of revenues from (i) micro-transactions, and (ii) subscription fees from Internet cafés. Micro-transaction fees for Online games—royalties and license fees The Group licenses the right to distribute and market its local version of games to overseas licensees (“game licensing contracts”) in exchange for an initial prepaid license fee and/or guaranteed minimum royalty payments. The Group generally provides its licenses with post-contract customer support on its software products, consisting of technical support and occasional unspecified upgrades, or enhancements during the contract term. The Group determined that granting a license is not distinct from other promised services in the contracts, therefore, the promise to grant a license and those other promised services together are considered a single performance obligation. Revenue is recognized over time, from commercial launch date to expiration date of contract under IAS 18 whereas it is recognized from the date when performance obligation is performed for the first time to expiration date of contract under IFRS 15. When the running royalty revenue based on the contractual royalty rate and the actual revenue of the licensee exceeds the ratably recognized guaranteed minimum, the excess is then recognized as revenue and accounts receivable. Although the accounting framework changes, the accounting treatment under the new standard would not be substantially changed. Mobile games Mobile games revenue consists of revenues from (i) micro-transactions that users purchase in cases where the Group directly provides mobile game services to users; (ii) royalties and license fees from licensees to which the Group licenses the right to distribute, promote, and market its local version of mobile games in overseas countries (“game licensing contracts”); (iii) royalties and license fees from licensees to which the Group licenses the right to use the original game and intellectual property to develop new games and distribute, promote, and market those newly developed games (“IP licensing contracts”); and (iv) mobile games operation services for third parties. Revenues from (i) royalties and license fees from licensees for game licensing contracts are recognized in line with those of online games. (ii) When the Group defers revenue generated by micro-transactions, it estimates the game users’ life cycle and defers the remaining amount of virtual currency and items purchased by active users as of the end of the reporting period Other revenue Other revenue consists of revenue from sales of console games, game character merchandising, animation and other services, including sales of goods related to mobile phones and website development and operation services for third parties. Revenues from are recognized by measuring progress is measured by reference to the costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. |
Incremental costs of obtaining contract | Incremental costs of obtaining contract The Group pays platform processing fees to operate mobile games on third party platforms. These fees are charged for the game users’ purchases in cash, and are considered as incremental cost of obtaining contracts with customer and are capitalized. The Group presents these costs as prepaid expense and amortizes them to costs of revenue at the same time when the related revenue of the services provided to the game users are recognized. |
Earnings per share | Earnings per share Basic earnings per share is calculated by dividing profit attributable to owners of the Parent by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding, increased by common stock equivalents. However, for the years ended December 31, 2019 and 2018, there have been no common stock equivalents outstanding. |
Current and Deferred Tax | Current and Deferred Tax The tax expense for the period consists of current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. The tax expense is measured at the amount expected to be paid to the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax assets are recognized only if it is probable that future taxable income will be available to utilize those temporary differences. The Group recognizes a deferred tax liability all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, The Group recognizes a deferred tax asset for all deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends to settle on a net basis. |
Employee Benefits | Employee Benefits Short-term employee benefits Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render services. When an employee has rendered a to the Group during an accounting period, the Group recognizes the undiscounted of short-term employee benefits in exchange for that Defined contribution pension plan The Group has a defined contribution pension plan with the related contribution to the pension plan recorded as severance benefit expenses for the employees with service period over a year. The Group recognizes provision for severance benefits for the employees with service period less than a year. |
Standards issued but not yet effective | Standards issued but not yet A number of new standards are effective for annual periods beginning after January 1, and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements. |
General Information (Tables)
General Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
General Information [Abstract] | |
Schedule of Major Shareholders and their Respective Percentage of Ownership | The Parent Company’s major shareholders and their respective percentage of ownership as of December 31, 2019 are as follows: Number of shares Ownership (%) GungHo Online Entertainment, Inc. 4,121,737 59.31 Others 2,827,163 40.69 6,948,900 100.00 |
Schedule of Consolidated Subsidiaries | Details of the consolidated subsidiaries as of December 31, 2019 and 2018 are as follows: Percentage of ownership (%) Subsidiary Location 2019 2018 Fiscal year end Main business Gravity Interactive, Inc. U.S.A. 100.00 100.00 December Online and mobile game services Gravity Entertainment Corp ( *1) Japan 100.00 100.00 December Animation production, distribution, and game services NeoCyon, Inc. ( *2) Korea 99.24 98.73 December Mobile game development and service Gravity Communications Co., Ltd. Taiwan 100.00 100.00 December Online and mobile game services PT Gravity Game Link ( *3) Indonesia 70.00 — December Online and mobile game services Gravity Game Tech Co., Ltd. ( *4) Thailand 100.00 — December Online and mobile game services Gravity Game Arise Co., Ltd. ( *5) Japan 100.00 — December Online and mobile game services (*1) As of December 31, Gravity Entertainment Corp. is in process of liquidation pursuant to management’s resolution in December 2019. (*2) During the year ended December 31, 2019, the Parent Company participated in paid-in capital increase of Neo Cyon, Inc., which resulted in increase of ownership interest of the Parent Company. (* 3) PT Gravity Game Link was established during the year ended December 31, 2019 with 70% ownership interest held by the Parent Company. (* 4) Gravity Game Tech Co., Ltd. was established during the year ended December 31, 2019 with 100% ownership interest held by the Parent Company. (* 5) Gravity Game Arise Co., Ltd. was established during the year ended December 31, 2019 with 100% ownership interest held by the Parent Company |
Schedule of Consolidated Financial Information Subsidiaries | Details of the condensed financial information of subsidiaries as of December 31, 2019 and 2018 are as follows: 2019 Subsidiaries Total assets(*) Total liabilities(*) Revenue(*) Profit(loss) For the period(*) (In millions of Korean won) Gravity Interactive, Inc. W 39,296 W 29,112 W 230,029 W 12,804 Gravity Entertainment Corp. 44 52 263 (443 ) NeoCyon, Inc. 9,145 6,728 25,347 (982 ) Gravity Communications Co., Ltd. 19,964 8,227 21,811 5,637 PT Gravity Game Link 960 202 745 (437 ) Gravity Game Tech Co., Ltd. 4,008 2,624 2,295 (1,973 ) Gravity Game Arise Co., Ltd. 1,841 1,343 771 (35 ) (*) Amount before offsetting the related party transactions. 2018 Subsidiaries Total assets(*1) Total liabilities(*1) Revenue(*1) Profit(loss) For the period(*1) (In millions of Korean won) NeoCyon, Inc. W 6,620 W 5,210 W 22,783 W (2,057 ) Gravity Interactive, Inc. 79,806 80,017 84,329 (2,511 ) Gravity Entertainment Corp. 509 96 157 30 Gravity Communications Co., Ltd. 8,231 2,352 2,201 205 Gravity Games Corp.(*2) — — 12 4,165 (*1) Amount before offsetting the related party transactions. (*2) Gravity Games Corp. was liquidated during 2018 and has been excluded from subsidiary since then. |
Changes in Accounting Policie_2
Changes in Accounting Policies and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Changes In Accounting Estimates [Abstract] | |
Summary of Impact on Transition | On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities. Additionally, the impact on transition is summarized below. January 1, 2019 (In millions of Korean won) Right-of-use assets(*1) Offices W 2,752 Vehicles 53 Computer and other equipment 1,648 Total W 4,453 Lease liabilities(*2) Current 1,672 Non-current 2,729 Total W 4,401 (*1) Right-of-use assets are included in ‘Property and equipment’ in the consolidated statement of financial position. (*2) Lease liabilities are included in ‘Other current liabilities’ and ‘Other non-current liabilities’ in the consolidated statement of financial position. |
Summary of Lease Liabilities Recognized | January 1, 2019 (In millions of Korean won) Operating lease commitments disclosed as at December 31, 2018 W 5,137 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (472 ) Exemptions on low-value leases (5 ) Exemptions on short-term leases (737 ) Adjustments on evaluation of extension and termination options under IFRS 16 478 Lease liability recognized as at January 1, 2019 W 4,401 Current lease liabilities W 1,672 Non-current lease liabilities 2,729 W 4,401 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Property and Equipment Estimated Useful Lives | Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows: Computer and equipment 4 years Furniture and fixtures 4 years Leasehold improvements 4 years |
Summary of Useful Lives of Intangible Assets | The Group amortizes intangible assets with a definite useful life using the straight-line method over the following periods: Software 1 ~ 3 years Industrial property rights 10 years License 2 years Other intangible assets 3 years |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Disclosure of Details of Cash and Cash Equivalents Explanatory | (1) Cash and cash equivalents as of December 31, 2019 and 2018 December 31, 2019 December 31, 2018 (In millions of Korean won) Deposits in banks W 52,941 W 48,005 Money market instruments 26,487 38,046 Total W 79,428 W 86,051 (2) The Group does not have any restricted cash and cash equivalents as of December 31, 2019 and 2018. |
Financial Instruments by Cate_2
Financial Instruments by Category (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Instruments [Abstract] | |
Schedule of Carrying Amounts of Financial Instruments by Category | December 31, 2019 December 31, 2018 Financial assets at amortized cost Financial assets at amortized cost Financial assets (In millions of Korean won) Cash and cash equivalents W 79,428 W 86,051 Short-term financial instruments 39,500 9,500 Accounts receivables, net 32,253 60,664 Other receivables, net 56 255 Other current assets 233 191 Other non-current financial assets 1,770 1,494 Total W 153,240 W 158,155 Financial liabilities at amortized cost Financial liabilities at amortized cost Financial liabilities (In millions of Korean won) Accounts payables W 37,689 W 71,928 Accrued expenses 19 16 Other current liabilities 1,986 113 Other non-current liabilities 3,008 34 Total W 42,702 W 72,091 |
Schedule of Net Income and Expenses From Financial Instruments | (2) Net income and expenses from financial instruments for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Financial assets at amortized cost (In millions of Korean won) Interest income W 1,626 W 819 W 554 Differences in foreign currency 1,267 159 231 Financial liabilities at amortized cost Interest expense (277 ) — — Differences in foreign currency (22 ) 105 (349 ) |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade And Other Receivables [Abstract] | |
Summary of Accounts and Other Receivables | (1) Accounts and other receivables as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Accounts receivables Non-related party W 29,697 W 59,633 Related party 2,721 1,053 Less : Loss allowance (165 ) (22 ) Accounts receivables, net W 32,253 W 60,664 December 31, 2019 December 31, 2018 (In millions of Korean won) Other receivables Non-related party W 60 W 339 Related party — — Less : Loss allowance (4 ) (84 ) Other receivables, net W 56 W 255 |
Summary of Changes in Loss Allowance of Accounts and Other Receivables | (2) Changes in the loss allowance of accounts and other receivables during the years ended December 31, 2019, 2018 and 2017 are as follows: Accounts receivables 2019 2018 2017 (In millions of Korean won) Beginning balance W 22 W 123 W 126 (Reversal of) Bad debt expenses 281 55 (3 ) Write-off (138 ) (156 ) — Ending balance W 165 W 22 W 123 Other receivables 2019 2018 2017 (In millions of Korean won) Beginning balance W 84 W 46 W 45 (Reversal of) Bad debt expenses (34 ) 40 1 Write-off (46 ) (2 ) — Ending balance W 4 W 84 W 46 |
Summary of ECLs and Credit Risk Exposures for Accounts and Other Receivables | (3) ECLs and credit risk exposures for accounts and other receivables as of December 31, 2019 and 2018 are as follows: ① Accounts receivables As of December 31, 2019 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days 0.3 % W 31,146 W 97 More than 90 days ~ Less than 180 days 3.6 % 1,213 44 More than 180 days ~ Less than 270 days 21.1 % 30 6 More than 270 days ~ Less than 1 year 51.9 % 24 12 More than 1 year 100.0 % 6 6 Total W 32,419 W 165 As of December 31, 2018 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days — W 60,588 W — More than 1 year 22.3 % 98 22 Total W 60,686 W 22 ② Other receivables As of December 31, 2019 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days 4.3 % W 57 W 2 More than 90 days ~ Less than 180 days 32.8 % 2 1 More than 180 days ~ Less than 270 days 99.6 % 1 1 More than 270 days ~ Less than 1 year 100.0 % 1 — Total W 61 W 4 As of December 31, 2018 Expected loss rate Carrying amount Loss allowance (In millions of Korean won) Less than 90 days — W 254 W — More than 270 days ~ Less than 1 year 49.0 % 1 — More than 1 year 100.0 % 84 84 Total W 339 W 84 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property Plant and Equipment | (1) Details property and equipment as of December 31, 2019 and 2018 are as follows: December 31, 2019 Acquisition price Accumulated depreciation Book amount (In millions of Korean won) Computer and other equipment W 5,671 W (4,614 ) W 1,057 Furniture and fixture 1,984 (1,541 ) 443 Leasehold improvements 1,291 (1,074 ) 217 Right-of-use assets 8,627 (3,681 ) 4,946 Total W 17,573 W (10,910 ) W 6,663 December 31, 2018 Acquisition price Accumulated depreciation Book amount (In millions of Korean won) Computer and other equipment W 7,125 W (6,237 ) W 888 Furniture and fixture 1,924 (1,440 ) 484 Leasehold improvements 1,124 (998 ) 126 Total W 10,173 W (8,675 ) W 1,498 |
Summary of Changes in Property and Equipment | (2) Changes in property and equipment for the years ended December 31, 2019 2019 Computer and other equipment Furniture and fixture Leasehold improvements Right-of-use assets Total (In millions of Korean won) Beginning balance W 888 W 484 W 126 W — W 1,498 Adjustment from the introduction of IFRS 16 (199 ) 4,453 4,254 Acquisitions 711 211 163 2,637 3,722 Depreciation (344 ) (198 ) (71 ) (2,135 ) (2,748 ) Disposals — (58 ) (2 ) (15 ) (75 ) Foreign exchange differences 1 4 1 6 12 Ending balance W 1,057 W 443 W 217 W 4,946 W 6,663 2018 Computer and other equipment Furniture and fixture Leasehold improvements Total (In millions of Korean won) Beginning balance W 654 W 165 W 127 W 946 Acquisition 550 472 119 1,141 Depreciation (297 ) (133 ) (115 ) (545 ) Disposal (32 ) (22 ) (5 ) (59 ) Foreign exchange differences 13 2 — 15 Ending balance W 888 W 484 W 126 W 1,498 2017 Computer and other equipment Furniture and fixture Leasehold improvements Total (In millions of Korean won) Beginning balance W 231 W 103 W 144 W 478 Acquisition 617 165 117 899 Depreciation (174 ) (103 ) (98 ) (375 ) Disposal — (1 ) (37 ) (38 ) Foreign exchange differences (20 ) 1 1 (18 ) Ending balance W 654 W 165 W 127 W 946 |
Summary of Classification Depreciation Expenses in Statements of Comprehensive Income | (3) Classification of depreciation expenses in the statements of comprehensive income for the years ended December 31, 2019, 2019 2018 2017 (In millions of Korean won) Cost of revenues W 1,795 W 260 W 182 Selling, general and administrative expenses 761 233 150 Research and development 192 52 43 Total W 2,748 W 545 W 375 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Intangible Assets [Abstract] | |
Summary of Intangible Assets | Details of intangible assets as of December 31, 2019 and are as follows December 31, 2019 (In millions of Korean Won) Acquisition price Accumulated depreciation(*) Carrying amount Software W 12,316 W (11,172 ) W 1,144 Industrial property rights 674 (488 ) 186 Other intangible assets 3,820 (3,433 ) 387 Total W 16,810 W (15,093 ) W 1,717 December 31, 2018 (In millions of Korean Won) Acquisition price Accumulated depreciation(*) Carrying amount Software W 11,341 W (10,350 ) W 991 Industrial property rights 533 (461 ) 72 Other intangible assets 3,410 (3,310 ) 100 Total W 15,284 W (14,121 ) W 1,163 (*) Accumulated depreciation includes the amount of accumulated impairment loss. |
Summary of Changes In Intangible Assets | Changes in intangible assets for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 991 W 72 W 57 W 43 W 1,163 Acquisitions 951 153 — 410 1,514 Amortization (807 ) (27 ) (5 ) (66 ) (905 ) Disposals (8 ) (12 ) — — (20 ) Impairment(*) — — (52 ) — (52 ) Foreign exchange differences 17 — — — 17 Ending balance W 1,144 W 186 W — W 387 W 1,717 (*) The Group recognized Korean Won 52 2018 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 64 W 77 W 843 W 52 W 1,036 Acquisitions 1,523 16 78 — 1,617 Amortization (597 ) (21 ) (241 ) (9 ) (868 ) Disposals — — — — — Impairment(*) — — (623 ) — (623 ) Foreign exchange differences 1 — — — 1 Ending balance W 991 W 72 W 57 W 43 W 1,163 (*) The Group recognized Korean Won 623 2017 Software Industrial property rights License Other intangible assets Total (In millions of Korean won) Beginning balance W 115 W 89 W — W 30 W 234 Acquisitions 36 12 1,104 25 1,177 Amortization (87 ) (24 ) (31 ) (3 ) (145 ) Disposals — — — — — Impairment(*) — — (230 ) — (230 ) Foreign exchange differences — — — — — Ending balance W 64 W 77 W 843 W 52 W 1,036 |
Summary of Classification of Amortization in Statements of Comprehensive Income | (3) Classification of amortization in the statements of comprehensive income for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Cost of revenues W 101 W 251 W 40 Selling, general and administrative expenses 745 581 68 Research and development 59 36 37 Total W 905 W 868 W 145 |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Summary of Common Shares | Details of common shares as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In Korean won and number of shares) Number of authorized shares 40,000,000 40,000,000 40,000,000 Value per share W 500 W 500 W 500 Number of shares issued 6,948,900 6,948,900 6,948,900 Common shares W 3,474,450,000 W 3,474,450,000 W 3,474,450,000 |
Summary of Capital Surplus | Details of capital surplus as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Additional paid in capital W 25,322 W 25,335 W 25,358 Other capital surplus 1,806 1,806 1,806 Total W 27,128 W 27,141 W 27,164 |
Summary of Other Components of Equity | Details of other components of equity as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Foreign currency translation adjustments W 274 W 138 W (40 ) |
Summary of Retained Earnings | Details of retained earnings as of December 31, 2019, 2018 and 2017 December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Unappropriated retained earnings W 84,668 W 45,405 W 13,962 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Details of Revenue from Contracts with Customers based on Service Contract and Timing of Satisfaction of Performance Obligations | (1) Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows: 2019 2018 (In millions of Korean won) Service contract Subscription contract W 310,006 W 260,888 Licensing contract 34,219 18,054 Others 16,742 7,828 360,967 286,770 Timing of satisfaction of performance obligations At a point in time 175 8 Over time 360,792 286,762 W 360,967 W 286,770 |
Account Receivables, Incremental Costs of Obtaining a Contract, and Contract Liabilities | (2) Accounts receivables, incremental costs of obtaining a contract, and contract liabilities related to contracts with customers December 31, 2019 December 31, 2018 (In millions of Korean won) Accounts receivables W 32,253 W 60,664 Incremental costs of obtaining a contract (Prepaid expenses) 998 2,036 Contract liabilities (Deferred revenue) Subscription revenue 8,742 12,017 Royalties and Licensing fees 1,403 7,223 Website & Application development 701 834 W 10,846 W 20,074 |
Changes in Contract Liabilities | (3) Changes in contract liabilities for the years ended December 31, 2019 and 2018 are as follows: 2019 2018 (In millions of Korean won) Balance at January 1 W 20,074 W 22,681 Increase related to subscription revenue 66,232 12,017 Increase related to royalties and licensing fees — 540 Increase related to website & application development contract 5,038 834 Decrease upon satisfaction of performance obligations - subscription revenue (69,507 ) (12,409 ) Decrease upon satisfaction of performance obligations -royalties and licensing fees (5,407 ) (3,066 ) Decrease due to termination of contract (413 ) (495 ) Decrease upon satisfaction of performance obligations - website & application development (5,171 ) (28 ) Balance at December 31 W 10,846 W 20,074 |
Transaction Price Allocated to Unsatisfied Performance Obligation | (4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Subscription revenue W 8,742 W 12,017 Royalties and Licensing fees 1,403 7,223 Website & Application development 701 834 |
Details of Incremental Costs of Obtaining Contract Recognized as Assets | (5) Details of incremental costs of obtaining a contract recognized as assets as of and for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Incremental costs of obtaining a contract W 998 W 2,036 2019 2018 Amortization costs recognized as cost of revenues W 2,036 W 2,231 |
Classification of Expenses By_2
Classification of Expenses By Nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expense By Nature [Abstract] | |
Summary of Expenses Classified By Nature | Expenses classified by nature for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Advertising expenses W 14,948 W 17,263 W 12,525 Fees and commissions 249,210 195,173 83,356 Lease expenses 1,496 2,604 2,205 Outsourcing expenses 7,875 6,176 5,189 Salaries 26,935 23,137 17,847 Expenses related to defined contribution plans 1,807 1,546 1,219 Employee benefits 3,026 2,655 2,169 Depreciation 2,748 545 375 Amortization 905 868 145 Other expenses 3,214 2,915 2,455 Total(*) W 312,164 W 252,882 W 127,485 (*) Classification of expenses by nature includes total cost of revenues, selling, general and administrative expenses and research and development in the consolidated statement of comprehensive income. |
Selling, General and Administ_2
Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selling General And Administrative Expense [Abstract] | |
Summary of Selling, General and Administrative Expenses | Details of the selling, general and administrative expenses for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Advertising expenses W 14,948 W 17,263 W 12,525 Fees and commissions 7,262 5,727 6,594 Lease expenses 665 941 686 Salaries 8,643 7,080 5,468 Expenses related to defined contribution plans 455 387 357 Employee benefits 1,253 1,140 919 Depreciation 761 233 150 Amortization 745 581 68 Other expenses 2,141 1,468 1,245 Total W 36,873 W 34,820 W 28,012 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expense [Abstract] | |
Summary of Details of Other Income | Details of other income for the years ended December 31, 2019 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Gain on disposal of property and equipment W 3 W 16 W 2 Reversal of other bad debt allowances 35 — — Miscellaneous gain 315 106 163 Total W 353 W 122 W 165 |
Summary of Details of Other Expenses | (2) Details of other expenses 2019 2018 2017 (In millions of Korean won) Loss on retirement and disposal of property and equipment W — W 5 W 37 Impairment loss on intangible assets 486 623 230 Miscellaneous loss 7 14 1 Total W 493 W 642 W 268 |
Finance Income And Costs (Table
Finance Income And Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Finance Income And Costs [Abstract] | |
Summary of Finance Income and Cost | Details of finance income and costs for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Finance income Interest income W 1,626 W 819 W 554 Unrealized foreign currency gain 119 81 288 Gain on foreign currency transaction 2,442 1,173 1,033 Total W 4,187 W 2,073 W 1,875 Finance costs Unrealized foreign currency loss W 267 W 99 W 671 Loss on foreign currency transaction 1,050 891 768 Others 277 12 13 Total W 1,594 W 1,002 W 1,452 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Major Components Of Tax Expense Income [Abstract] | |
Schedule of Income Tax Expense | Details of income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Current tax on profit for the year W 11,775 W 7,430 W 4,180 Deferred tax expense (benefit) (249 ) (4,377 ) (3,036 ) Income tax expense W 11,526 W 3,053 W 1,144 |
Summary of Differences Between Tax Expense and Amount Arise Using Statutory Tax Rate Applicable to Profits of Group | The differences between the tax expense on the Group’s profit before tax and the amount that would arise using the statutory tax rate applicable to profits of the Group for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Profit before income tax W 51,256 W 34,439 W 14,458 Income tax using the statutory tax rate of each country 12,063 8,994 3,232 Adjustments Expenses not deductible for tax purpose 42 62 136 Tax amounts paid in a foreign country 4,854 5,196 3,963 Changes in recognition of previously unrecognized deferred tax assets (4,347 ) — — Utilization of previously unrecognized deferred tax asset — (5,347 ) (3,307 ) Change in deferred tax due to carry-forward deficits (33 ) (6,265 ) (3,036 ) Effect of change foreign currency exchange rate (12 ) (221 ) 495 Tax credit (543 ) — — Others (498 ) 634 (339 ) Total adjustments (537 ) (5,941 ) (2,088 ) Income tax expense W 11,526 W 3,053 W 1,144 Effective tax rate 22 % 9 % 8 % |
Schedule of Changes in Deferred Income Tax Assets (Liabilities) | Details of the changes in deferred income tax assets (liabilities) for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Beginning balance Increase (decrease) Ending balance Beginning balance Increase (decrease) Ending balance (In millions of Korean won) (In millions of Korean won) Deferred income tax on temporary differences Property and equipment W 25 W (18 ) W 7 W — W 25 W 25 Intangible assets 238 (17 ) 221 — 238 238 Other non-current assets 8 96 104 49 (41 ) 8 Accounts payables 531 996 1,527 — 531 531 Accrued expenses — 39 39 — — — Deferred revenue 60 614 674 180 (120 ) 60 Allowance for doubtful account 264 11 275 — 264 264 Other non-current liabilities 46 — 46 39 7 46 Investments in subsidiaries — 389 389 2,747 (2,747 ) — Lease — 1 1 — — — Foreign taxes paid (4 ) 4 — — (4 ) (4 ) Others (21 ) (4 ) (25 ) (120 ) 99 (21 ) Sub Total 1,147 2,111 3,258 2,895 (1,748 ) 1,147 Deferred tax due to carry-forward deficits 1,951 (1,918 ) 33 108 1,843 1,951 Deferred tax due to tax credit carry-forward 4,315 56 4,371 33 4,282 4,315 Deferred tax assets W 7,413 W 249 W 7,662 W 3,036 W 4,377 W 7,413 |
Schedule of Unused Tax Loss Carryforwards and Unused Tax Credit Carryforwards Not Recognized as Deferred Income Tax Assets | Details of unused tax loss carryforwards and unused tax credit carryforwards that are not recognized as deferred income tax assets as of December 31, 2019 are as follows: Year of expiration Unused loss carryforwards Unused tax credit carryforwards 2020 W — W 212 2021 — 176 2022 — 163 2023 1,045 501 2024 2,662 518 After 2024 7,604 — Total W 11,311 W 1,570 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Basic Earnings Per Share | (1) Basic earnings per share 2019 2018 2017 (In millions of Korean won, except per share data) Profit attributable to owners of the Parent W 39,876 W 31,443 W 13,319 Weighted average outstanding shares of common shares 6,948,900 6,948,900 6,948,900 Basic earnings per share W 5,738 W 4,525 W 1,917 |
Statements of Cash Flows (Table
Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Cash Flow Statement [Abstract] | |
Summary of Cash Generated From Operations | Cash generated from operations for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Profit for the year W 39,730 W 31,386 W 13,314 Depreciation expense 2,748 545 375 Amortization expense 905 868 145 Bad debt expenses 281 151 74 Unrealized foreign currency loss 267 99 671 Interest expense 277 — — Loss on retirement and disposal of property and equipment — 5 37 Impairment losses on intangible assets 486 623 230 Post-employment benefit expense (Reversal of allowance for retirement benefit) (4 ) 50 164 Income tax expense 11,526 3,053 1,144 Unrealized foreign currency gain (119 ) (81 ) (288 ) Interest income (1,626 ) (819 ) (554 ) Gain on disposal of property and equipment (3 ) (16 ) (2 ) Reversal of other bad debt allowances (34 ) — — Gain on disposal of intangible assets (1 ) — — Change in accounts receivables 30,143 (18,573 ) (27,786 ) Change in other receivables 232 406 12 Change in prepaid expenses 1,981 544 (1,390 ) Change in advance payments (204 ) — — Change in other current assets (556 ) 192 (400 ) Change in other non-current assets (1,860 ) (1,137 ) (449 ) Change in accounts payables (37,145 ) 27,319 35,046 Change in deferred revenue (9,631 ) (2,707 ) 1,980 Change in withholdings (397 ) 580 1,239 Change in accrued expenses 140 (7 ) 187 Change in other current liabilities 113 (13 ) 68 Change in long-term deferred revenue — 100 4,111 Change in other non-current liabilities (463 ) — 261 Change in advance receipt 434 — — Total W 37,220 W 42,571 W 28,189 |
Summary of Significant Non-cash Transactions | Significant non-cash transactions for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Reclassification of advance payments to intangible assets W 120 W — W — Increase of accounts payables due to software purchasing 33 226 — Additions of right-of-use assets 2,637 — — |
Summary of Changes in Liabilities Arising From Financing Activities | Changes in liabilities arising from financing activities for the year ended December 31, 2019, are as follows: Lease liabilities (In millions of Korean won) Beginning of the year W — Adjustment due to adoption of IFRS 16 4,401 Beginning of the year after adjustment 4,401 Cash flows from financing activities – Repayment of lease liabilities (2,034 ) Cash flows from operating activities – Interest paid (277 ) Non-cash transactions Acquisitions – leases 2,637 Interest expense 277 Early termination of leases (15 ) Exchange differences 5 Ending of the year W 4,994 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Presentation Of Leases For Lessee [Abstract] | |
Summary of of Right-of-Use Assets and Lease Liabilities Recognized in Consolidated Statement of Financial Position | (1) Details of right-of-use assets and lease liabilities recognized in the consolidated statement of financial position December 31, 2019 (In millions of Korean won) Right-of-use assets(*1) Offices W 3,642 Vehicles 266 Equipment 1,038 Total W 4,946 Lease liabilities(*2) Current 1,986 Non-current 3,008 Total W 4,994 (*1) Right-of-use assets are (*2) Lease liabilities are |
Summary of Changes in Right-of-Use Assets | (2) Changes in right-of-use assets for the year ended December 31, 2019 are as follows: 2019 Offices Vehicles Equipment Total (In millions of Korean won) Balance as of January 1, 2019 W 2,752 W 53 W 1,648 W 4,453 Depreciation (901 ) (92 ) (1,142 ) (2,135 ) Additions 1,791 320 526 2,637 Removal — (15 ) — (15 ) Translation differences — — 6 6 Balance as of December 31, 2019 W 3,642 W 266 W 1,038 W 4,946 |
Summary of Amounts Recognized in Consolidated Statement of Profit or Loss | (3) Details of amounts recognized in the consolidated statement of profit or loss for the year ended December 31, 2019 are as follows: 2019 (In millions of Korean won) Interest expense relating to lease liabilities (included in finance cost) W 277 Expense relating to short-term leases 322 Expense relating to leases of low-value assets that are not short-term leases 10 |
Summary of Amounts Relating to Leases in Consolidated Statement of Profit or Loss | (4) Details of amounts recognized in the consolidated statement of Cash flows for the 2019 (In millions of Korean won) Total cash outflows of leases W 2,644 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Financial Instruments [Abstract] | |
Schedule of Company's Debt to Equity Ratio | The debt ratios as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 (In millions of Korean won) Total liabilities W 59,659 W 97,622 Total equity 115,766 75,552 Debt-to-equity ratio 52 % 129 % |
Schedule of Financial Assets and Liabilities Exposed in Foreign Currency Risk | The Group is exposed to foreign exchange risk arising from royalty revenues and commission payment primarily with respect to the US dollar and etc. The Group’s financial assets and liabilities are exposed to foreign currency risk as of December 31, 2019 and 2018 are as follows: December 31, 2019 Financial assets Financial liabilities Financial assets Financial liabilities (In each foreign currency) (In millions of Korean won) USD 8,100,729 5,775,721 W 9,403 W 6,696 JPY 456,300,430 340,468,613 4,854 3,621 EUR 338,598 1,000 439 1 IDR 12,955,000 17,023,944 1 1 THB 28,510 7,379 1 — TWD 29,236,669 5,567,672 1,125 214 VND 9,270,000 3,243,600 — — GBP — 5,625 — 9 HKD 368,048 — 55 — Total W 15,878 W 10,542 December 31, 2018 Financial assets Financial liabilities Financial assets Financial liabilities (In each foreign currency) (In millions of Korean won) USD 9,623,496 7,486,441 W 10,761 W 8,373 JPY 103,945,453 1,042,657 1,053 11 EUR 359,772 — 460 — IDR 172,822,025 3,098,944 13 — THB 34,633 173,389 1 6 TWD 36,311,172 6,597,223 1,328 241 VND 9,270,000 3,243,600 1 — HKD 2,731 — — — Total W 13,617 W 8,631 |
Summary of Impact of Fluctuation in Foreign Currency Exchange Rates on Company's Monetary Assets and Liabilities | The impact of a 10% fluctuation in foreign currency exchange rates on the Company’s monetary assets and liabilities as of December 31, 2019, and 2018 are as follows: December 31, 2019 December 31, 2018 10% 10% Decrease 10% Increase 10% Decrease (In millions of Korean won) USD W 271 W (271 ) W 239 W (239 ) JPY 123 (123 ) 104 (104 ) Others 140 (140 ) 156 (156 ) Total W 534 W (534 ) W 499 W (499 ) |
Summary of Maximum Exposure to Credit Risk | The carrying amount of a financial asset represents the maximum exposure to credit risk. The maximum exposure to credit risk of the Company December 31, 2019 December 31, 2018 (In millions of Korean won) Cash and cash equivalents W 79,428 W 86,051 Short-term financial instruments 39,500 9,500 Accounts receivable 32,253 60,664 Other receivable 56 255 Other current assets 233 191 Other non-current financial assets 1,770 1,494 Total W 153,240 W 158,155 |
Summary of Financial Liabilities by Maturity | The following table summarizes the financial liabilities of the Company by maturity according to the remaining period from the end of the reporting period to the contractual maturity date. December 31, 2019 Carrying value Less than 3 months 3 months ~ 1 year 1~2 years 2~3 years 3~5 years Total (In millions of Korean won) Accounts payable W 37,689 W 21,374 W 16,122 W 193 W — W — W 37,689 Accrued expenses 1,175 1,175 — — — — 1,175 Other liabilities (*) 4,994 598 1,653 1,780 1,029 428 5,488 Total W 43,858 W 23,147 W 17,775 W 1,973 W 1,029 W 428 W 44,352 (*) Other liabilities as at December 31, 2019 consist of lease liabilities. December 31, 2018 Carrying value Less than 3 months 3 months ~ 1 year More than 1 year Total (In millions of Korean won) Accounts payable W 71,928 W 70,381 W 1,547 W — W 71,928 Accrued expenses 1,031 1,031 — — 1,031 Other liabilities 147 — 113 34 147 Total W 73,106 W 71,412 W 1,660 W 34 W 73,106 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Segments [Abstract] | |
Summary of Segment Information | The segment information for the years ended December 2019 Revenue Depreciation Amortization Operating profit(*2) (In millions of Korean won) Online W 48,182 W 1,401 W 7,754 Mobile 346,878 1,145 38,655 Others 19,352 1,107 562 Sub total 414,412 3,653 46,971 Inter-segment eliminations(*1) (53,445 ) — 1,692 Total W 360,967 W 3,653 W 48,663 2018 Revenue Depreciation Amortization Operating profit(*2) (In millions of Korean won) Online W 41,288 W 238 W 4,286 Mobile 257,364 473 24,795 Others 9,526 715 1,086 Sub total 308,178 1,426 30,167 Inter-segment eliminations(*1) (21,408 ) (12 ) 3,201 Total W 286,770 W 1,414 W 33,368 2017 Revenue Depreciation Amortization Operating profit(loss)(*2) (In millions of Korean won) Online W 53,790 W 222 W 14,536 Mobile 87,194 268 (2,476 ) Others 7,532 36 993 Sub total 148,516 526 13,053 Inter-segment eliminations(*1) (6,893 ) (6 ) 982 Total W 141,623 W 520 W 14,035 (* 1) The Group reflects inter-segment eliminations as adjustments. (* 2) Other profit or loss items that do not constitute operating profit (loss) are not separately disclosed because they are not reviewed by the chief operating decision maker by operating segment. |
Summary Revenue from External Customers by Country | (2) Revenue from external customers by country for the 2019 2018 2017 (In millions of Korean won) Korea W 45,273 W 80,814 W 28,708 Taiwan 52,118 98,210 76,121 Japan 28,469 9,767 9,491 The United States of America 55,062 10,572 7,774 Thailand 62,043 43,846 6,569 The Philippines 30,951 15,539 883 Indonesia 22,355 9,359 1,075 Other 64,696 18,663 11,002 Total W 360,967 W 286,770 W 141,623 (*) Revenue was attributed to the country based on the customer’s location. |
Summary of Non-Current Assets by Geographical Regions | Non-Current assets by geographical regions as of December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 December 31, 2018 December 31, 2017 (In millions of Korean won) Domestic W 5,732 W 3,054 W 2,114 Overseas 4,170 1,045 468 Total W 9,902 W 4,099 W 2,582 (*) The amounts are exclusive of financial assets and deferred tax assets. (3) No individual external customers accounted for more than 10% of consolidated revenue for the years ended December 31, 2019, 2018 and 2017. |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Summary of Account Balances with Related Parties | Balances of receivables and payables to related parties as of December 31, 2019 and 2018 are as follows : December 31, 2019 December 31, 2018 (In millions of Korean won) Related parties classification Entity Receivable Payables Receivable Payables Parent company Gung-Ho Online Entertainment, Inc. W 2,722 W 74 W 1,053 W 3 The details of transaction with related parties for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Related parties classification Entity Sales Purchase Sales Purchase Sales Purchase Parent company Gung-Ho Online Entertainment, Inc. W 27,484 W 60 W 10,516 W 3 W 10,529 W 36 |
Summary of Key Management Personnel Compensation | The compensation for the key management personnel (registered directors), for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (In millions of Korean won) Salary W 866 W 690 W 629 |
General Information - Additiona
General Information - Additional Information (Details) ₩ in Millions | Dec. 31, 2019KRW (₩)Marketshares | Dec. 31, 2018KRW (₩) | Feb. 08, 2005shares |
General Information [Line Items] | |||
Number Of International Markets | Market | 93 | ||
Number of shares issued | shares | 6,948,900 | ||
Share capital | ₩ | ₩ 3,474 | ₩ 3,474 | |
American Depositary Shares | |||
General Information [Line Items] | |||
Number of shares issued | shares | 1,400,000 | ||
Share capital | ₩ | ₩ 3,474 |
General Information - Schedule
General Information - Schedule of Major Shareholders and their Respective Percentage of Ownership (Details) | Dec. 31, 2019shares |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Number of shares | 6,948,900 |
Ownership percentage | 100.00% |
GungHo Online Entertainment, Inc. | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Number of shares | 4,121,737 |
Ownership percentage | 59.31% |
Others | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Number of shares | 2,827,163 |
Ownership percentage | 40.69% |
General Information - Schedul_2
General Information - Schedule of Consolidated Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Gravity Interactive, Inc. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | Gravity Interactive, Inc. | |
Location | U.S.A. | |
Ownership interest held by the Gravity (%) | 100.00% | 100.00% |
Fiscal Year End | December | |
Main business | Online and mobile game services | |
Gravity Entertainment Corp. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | Gravity Entertainment Corp(*1) | |
Location | Japan | |
Ownership interest held by the Gravity (%) | 100.00% | 100.00% |
Fiscal Year End | December | |
Main business | Animation production, distribution, and game services | |
NeoCyon, Inc. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | NeoCyon, Inc. | |
Location | Korea | |
Ownership interest held by the Gravity (%) | 99.24% | 98.73% |
Fiscal Year End | December | |
Main business | Mobile game development and service | |
Gravity Communications Co.,Ltd. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | Gravity Communications Co.,Ltd. | |
Location | Taiwan | |
Ownership interest held by the Gravity (%) | 100.00% | 100.00% |
Fiscal Year End | December | |
Main business | Online and mobile game services | |
PT. Gravity Game Link | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | PT. Gravity Game Link | |
Location | Indonesia | |
Ownership interest held by the Gravity (%) | 70.00% | |
Fiscal Year End | December | |
Main business | Online and mobile game services | |
Gravity Game Tech Co.,Ltd. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | Gravity Game Tech Co.,Ltd. | |
Location | Thailand | |
Ownership interest held by the Gravity (%) | 100.00% | |
Fiscal Year End | December | |
Main business | Online and mobile game services | |
Gravity Game Arise Co., Ltd. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Subsidiary | Gravity Game Arise Co., Ltd. | |
Location | Japan | |
Ownership interest held by the Gravity (%) | 100.00% | |
Fiscal Year End | December | |
Main business | Online and mobile game services |
General Information - Schedul_3
General Information - Schedule of Consolidated Subsidiaries (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
PT. Gravity Game Link | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Ownership interest held by the Gravity (%) | 70.00% |
Gravity Game Tech Co.,Ltd. | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Ownership interest held by the Gravity (%) | 100.00% |
Gravity Game Arise Co., Ltd. | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |
Ownership interest held by the Gravity (%) | 100.00% |
General Information - Schedul_4
General Information - Schedule of Consolidated Financial Information Subsidiaries (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | ₩ 175,425 | ₩ 173,174 | |
Total liabilities | 59,659 | 97,622 | |
Revenue | 360,967 | 286,770 | ₩ 141,623 |
Profit (loss) for the year | 39,730 | 31,386 | ₩ 13,314 |
Gravity Interactive, Inc. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 39,296 | 79,806 | |
Total liabilities | 29,112 | 80,017 | |
Revenue | 230,029 | 84,329 | |
Profit (loss) for the year | 12,804 | (2,511) | |
Gravity Entertainment Corp. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 44 | 509 | |
Total liabilities | 52 | 96 | |
Revenue | 263 | 157 | |
Profit (loss) for the year | (443) | 30 | |
NeoCyon, Inc. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 9,145 | 6,620 | |
Total liabilities | 6,728 | 5,210 | |
Revenue | 25,347 | 22,783 | |
Profit (loss) for the year | (982) | (2,057) | |
Gravity Communications Co.,Ltd. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 19,964 | 8,231 | |
Total liabilities | 8,227 | 2,352 | |
Revenue | 21,811 | 2,201 | |
Profit (loss) for the year | 5,637 | 205 | |
PT. Gravity Game Link | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 960 | ||
Total liabilities | 202 | ||
Revenue | 745 | ||
Profit (loss) for the year | (437) | ||
Gravity Game Tech Co.,Ltd. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 4,008 | ||
Total liabilities | 2,624 | ||
Revenue | 2,295 | ||
Profit (loss) for the year | (1,973) | ||
Gravity Game Arise Co., Ltd. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Total assets | 1,841 | ||
Total liabilities | 1,343 | ||
Revenue | 771 | ||
Profit (loss) for the year | ₩ (35) | ||
Gravity Games Corp. | |||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | |||
Revenue | 12 | ||
Profit (loss) for the year | ₩ 4,165 |
Changes in Accounting Policie_3
Changes in Accounting Policies and Disclosures - Summary of Lease Impact on Transition (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Right-of-use assets | |||
Right-of-use assets | ₩ 4,946 | ₩ 4,453 | |
Lease liabilities | |||
Current | 1,986 | ₩ 1,672 | |
Non-current | 3,008 | 2,729 | |
Total | ₩ 4,994 | 4,401 | |
IFRS 16 | |||
Right-of-use assets | |||
Right-of-use assets | 4,453 | ||
Lease liabilities | |||
Current | 1,672 | ||
Non-current | 2,729 | ||
Total | 4,401 | ||
IFRS 16 | Offices | |||
Right-of-use assets | |||
Right-of-use assets | 2,752 | ||
IFRS 16 | Vehicles | |||
Right-of-use assets | |||
Right-of-use assets | 53 | ||
IFRS 16 | Computer and Other Equipment | |||
Right-of-use assets | |||
Right-of-use assets | ₩ 1,648 |
Changes in Accounting Policie_4
Changes in Accounting Policies and Disclosures - Additional Information (Details) | Jan. 01, 2019 |
Disclosure Of Changes In Accounting Estimates [Abstract] | |
Weighted average incremental borrowing rate applied to the lease liabilities | 6.59% |
Changes in Accounting Policie_5
Changes in Accounting Policies and Disclosures - Summary of Lease Liabilities Recognized (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure Of Changes In Accounting Estimates [Abstract] | ||
Operating lease commitments disclosed as at December 31, 2018 | ₩ 5,137 | |
Discounted using the lessee’s incremental borrowing rate of at the date of initial application | (472) | |
Exemptions on low-value leases | (5) | |
Exemptions on short-term leases | (737) | |
Adjustments on evaluation of extension and termination options under IFRS 16 | 478 | |
Total | ₩ 4,994 | 4,401 |
Current lease liabilities | 1,986 | 1,672 |
Non-current lease liabilities | ₩ 3,008 | ₩ 2,729 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - KRW (₩) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Significant Accounting Policies [Abstract] | |||
Transfers of financial assets | ₩ 0 | ₩ 0 | ₩ 0 |
Common stock equivalents outstanding | 0 | 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer and Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 4 years |
Furniture and Fixtures | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 4 years |
Leasehold Improvements | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 4 years |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Software | Bottom of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Intangible assets, useful lives | 1 year |
Software | Top of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Intangible assets, useful lives | 3 years |
Industrial Property Rights | |
Disclosure Of Intangible Assets [Line Items] | |
Intangible assets, useful lives | 10 years |
License | |
Disclosure Of Intangible Assets [Line Items] | |
Intangible assets, useful lives | 2 years |
Other Intangible Assets | |
Disclosure Of Intangible Assets [Line Items] | |
Intangible assets, useful lives | 3 years |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Deposits in banks | ₩ 52,941 | ₩ 48,005 | ||
Money market instruments | 26,487 | 38,046 | ||
Total | ₩ 79,428 | ₩ 86,051 | ₩ 39,095 | ₩ 16,720 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - KRW (₩) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Restricted cash and cash equivalents | ₩ 0 | ₩ 0 |
Financial Instruments by Cate_3
Financial Instruments by Category - Schedule of Carrying Amounts of Financial Instruments by Category (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Cash and cash equivalents | ₩ 79,428 | ₩ 86,051 | ₩ 39,095 | ₩ 16,720 |
Short-term financial instruments | 39,500 | 9,500 | ||
Accounts receivables, net | 32,253 | 60,664 | ||
Other receivables, net | 56 | 255 | ||
Other non-current financial assets | 1,770 | 1,494 | ||
Total | 15,878 | 13,617 | ||
Accounts payables | 37,496 | 71,928 | ||
Total | 10,542 | 8,631 | ||
Financial Assets at Amortized Cost | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Cash and cash equivalents | 79,428 | 86,051 | ||
Short-term financial instruments | 39,500 | 9,500 | ||
Accounts receivables, net | 32,253 | 60,664 | ||
Other receivables, net | 56 | 255 | ||
Other current assets | 233 | 191 | ||
Other non-current financial assets | 1,770 | 1,494 | ||
Total | 153,240 | 158,155 | ||
Financial Liabilities at Amortized Cost | ||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||
Accounts payables | 37,689 | 71,928 | ||
Accrued expenses | 19 | 16 | ||
Other current liabilities | 1,986 | 113 | ||
Other non-current liabilities | 3,008 | 34 | ||
Total | ₩ 42,702 | ₩ 72,091 |
Financial Instruments by Cate_4
Financial Instruments by Category - Schedule of Net Income and Expenses From Financial Instruments (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Assets at Amortized Cost | Interest Income | |||
Disclosure Of Financial Instruments [Line Items] | |||
Income and expenses on financial assets at amortized cost | ₩ 1,626 | ₩ 819 | ₩ 554 |
Financial Assets at Amortized Cost | Differences in Foreign Currency | |||
Disclosure Of Financial Instruments [Line Items] | |||
Income and expenses on financial assets at amortized cost | 1,267 | 159 | 231 |
Financial Liabilities at Amortized Cost | Interests Expense | |||
Disclosure Of Financial Instruments [Line Items] | |||
Income and expenses on financial liabilities at amortized cost | (277) | ||
Financial Liabilities at Amortized Cost | Differences in Foreign Currency | |||
Disclosure Of Financial Instruments [Line Items] | |||
Income and expenses on financial liabilities at amortized cost | ₩ (22) | ₩ 105 | ₩ (349) |
Accounts and Other Receivable_2
Accounts and Other Receivables - Summary of Accounts and Other Receivables (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Non-related party | ₩ 29,697 | ₩ 59,633 | ||
Related party | 2,721 | 1,053 | ||
Less : Loss allowance | (165) | (22) | ₩ (123) | ₩ (126) |
Accounts receivables, net | 32,253 | 60,664 | ||
Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Non-related party | 60 | 339 | ||
Less : Loss allowance | (4) | (84) | ₩ (46) | ₩ (45) |
Other receivables, net | ₩ 56 | ₩ 255 |
Accounts and Other Receivable_3
Accounts and Other Receivables - Summary of Changes in Loss Allowance of Accounts and Other Receivables (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivables | |||
Trade And Other Receivables [Line Items] | |||
Beginning balance | ₩ 22 | ₩ 123 | ₩ 126 |
(Reversal of) Bad debt expenses | 281 | 55 | (3) |
Write-off | (138) | (156) | |
Ending balance | 165 | 22 | 123 |
Other Receivables | |||
Trade And Other Receivables [Line Items] | |||
Beginning balance | 84 | 46 | 45 |
(Reversal of) Bad debt expenses | (34) | 40 | 1 |
Write-off | (46) | (2) | |
Ending balance | ₩ 4 | ₩ 84 | ₩ 46 |
Accounts and Other Receivable_4
Accounts and Other Receivables - Summary of ECLs and Credit Risk Exposures for Accounts and Other Receivables (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Carrying amount | ₩ 32,419 | ₩ 60,686 | ||
Loss allowance | 165 | 22 | ₩ 123 | ₩ 126 |
Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Carrying amount | 61 | 339 | ||
Loss allowance | ₩ 4 | 84 | ₩ 46 | ₩ 45 |
Less than 90 days | Expected Credit Losses and Credit Risk Exposures | Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 0.30% | |||
Carrying amount | ₩ 31,146 | 60,588 | ||
Loss allowance | ₩ 97 | |||
Less than 90 days | Expected Credit Losses and Credit Risk Exposures | Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 4.30% | |||
Carrying amount | ₩ 57 | ₩ 254 | ||
Loss allowance | ₩ 2 | |||
More than 90 days ~ Less than 180 days | Expected Credit Losses and Credit Risk Exposures | Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 3.60% | |||
Carrying amount | ₩ 1,213 | |||
Loss allowance | ₩ 44 | |||
More than 90 days ~ Less than 180 days | Expected Credit Losses and Credit Risk Exposures | Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 32.80% | |||
Carrying amount | ₩ 2 | |||
Loss allowance | ₩ 1 | |||
More than 180 days ~ Less than 270 days | Expected Credit Losses and Credit Risk Exposures | Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 21.10% | |||
Carrying amount | ₩ 30 | |||
Loss allowance | ₩ 6 | |||
More than 180 days ~ Less than 270 days | Expected Credit Losses and Credit Risk Exposures | Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 99.60% | |||
Carrying amount | ₩ 1 | |||
Loss allowance | ₩ 1 | |||
More than 270 days ~ Less than 1 year | Expected Credit Losses and Credit Risk Exposures | Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 51.90% | |||
Carrying amount | ₩ 24 | |||
Loss allowance | ₩ 12 | |||
More than 270 days ~ Less than 1 year | Expected Credit Losses and Credit Risk Exposures | Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 100.00% | 49.00% | ||
Carrying amount | ₩ 1 | ₩ 1 | ||
More than 1 year | Expected Credit Losses and Credit Risk Exposures | Accounts Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 100.00% | 22.30% | ||
Carrying amount | ₩ 6 | ₩ 98 | ||
Loss allowance | ₩ 6 | ₩ 22 | ||
More than 1 year | Expected Credit Losses and Credit Risk Exposures | Other Receivables | ||||
Trade And Other Receivables [Line Items] | ||||
Expected loss rate | 100.00% | |||
Carrying amount | ₩ 84 | |||
Loss allowance | ₩ 84 |
Property and Equipment - Summar
Property and Equipment - Summary of Property Plant and Equipment (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | ₩ 6,663 | ₩ 1,498 | ₩ 946 | ₩ 478 |
Right-of-use Assets | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 4,946 | |||
Computer and Other Equipment | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 1,057 | 888 | 654 | 231 |
Furniture and Fixtures | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 443 | 484 | 165 | 103 |
Leasehold Improvements | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 217 | 126 | ₩ 127 | ₩ 144 |
Accumulated Depreciation | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | (10,910) | (8,675) | ||
Accumulated Depreciation | Right-of-use Assets | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | (3,681) | |||
Accumulated Depreciation | Computer and Other Equipment | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | (4,614) | (6,237) | ||
Accumulated Depreciation | Furniture and Fixtures | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | (1,541) | (1,440) | ||
Accumulated Depreciation | Leasehold Improvements | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | (1,074) | (998) | ||
Acquisition Price | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 17,573 | 10,173 | ||
Acquisition Price | Right-of-use Assets | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 8,627 | |||
Acquisition Price | Computer and Other Equipment | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 5,671 | 7,125 | ||
Acquisition Price | Furniture and Fixtures | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | 1,984 | 1,924 | ||
Acquisition Price | Leasehold Improvements | ||||
Disclosure Of Property Plant And Equipment [Line Items] | ||||
Property and equipment, net | ₩ 1,291 | ₩ 1,124 |
Property and Equipment - Summ_2
Property and Equipment - Summary of Change in Property and Equipment (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment beginning balance | ₩ 1,498 | ₩ 946 | ₩ 478 |
Adjustment from the introduction of IFRS 16 | 4,254 | ||
Acquisitions | 3,722 | 1,141 | 899 |
Depreciation | (2,748) | (545) | (375) |
Disposals | (75) | (59) | (38) |
Foreign exchange differences | 12 | 15 | (18) |
Property, plant and equipment ending balance | 6,663 | 1,498 | 946 |
Right-of-use Assets | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Adjustment from the introduction of IFRS 16 | 4,453 | ||
Acquisitions | 2,637 | ||
Depreciation | (2,135) | ||
Disposals | (15) | ||
Foreign exchange differences | 6 | ||
Property, plant and equipment ending balance | 4,946 | ||
Computer and Other Equipment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment beginning balance | 888 | 654 | 231 |
Adjustment from the introduction of IFRS 16 | (199) | ||
Acquisitions | 711 | 550 | 617 |
Depreciation | (344) | (297) | (174) |
Disposals | (32) | ||
Foreign exchange differences | 1 | 13 | (20) |
Property, plant and equipment ending balance | 1,057 | 888 | 654 |
Furniture and Fixtures | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment beginning balance | 484 | 165 | 103 |
Acquisitions | 211 | 472 | 165 |
Depreciation | (198) | (133) | (103) |
Disposals | (58) | (22) | (1) |
Foreign exchange differences | 4 | 2 | 1 |
Property, plant and equipment ending balance | 443 | 484 | 165 |
Leasehold Improvements | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment beginning balance | 126 | 127 | 144 |
Acquisitions | 163 | 119 | 117 |
Depreciation | (71) | (115) | (98) |
Disposals | (2) | (5) | (37) |
Foreign exchange differences | 1 | 1 | |
Property, plant and equipment ending balance | ₩ 217 | ₩ 126 | ₩ 127 |
Property and Equipment - Summ_3
Property and Equipment - Summary of Classification of Depreciation Expenses in Statements of Comprehensive Income (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Depreciation of property,plant and equipment | ₩ 2,748 | ₩ 545 | ₩ 375 |
Cost of Revenues | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Depreciation of property,plant and equipment | 1,795 | 260 | 182 |
Selling, General and Administrative Expenses | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Depreciation of property,plant and equipment | 761 | 233 | 150 |
Research and Development | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Depreciation of property,plant and equipment | ₩ 192 | ₩ 52 | ₩ 43 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) | Dec. 31, 2019KRW (₩) |
Property Plant And Equipment [Abstract] | |
Property and equipment pledged as collaterals | ₩ 0 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | ₩ 1,717 | ₩ 1,163 | ₩ 1,036 | ₩ 234 |
Software | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 1,144 | 991 | 64 | 115 |
Industrial Property Rights | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 186 | 72 | ₩ 77 | ₩ 89 |
Other Intangible Assets | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 387 | 100 | ||
Acquisition Price | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 16,810 | 15,284 | ||
Acquisition Price | Software | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 12,316 | 11,341 | ||
Acquisition Price | Industrial Property Rights | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 674 | 533 | ||
Acquisition Price | Other Intangible Assets | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | 3,820 | 3,410 | ||
Accumulated Depreciation | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | (15,093) | (14,121) | ||
Accumulated Depreciation | Software | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | (11,172) | (10,350) | ||
Accumulated Depreciation | Industrial Property Rights | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | (488) | (461) | ||
Accumulated Depreciation | Other Intangible Assets | ||||
Disclosure Of Intangible Assets [Line Items] | ||||
Intangible assets | ₩ (3,433) | ₩ (3,310) |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Changes In Intangible Assets (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets at beginning balance | ₩ 1,163 | ₩ 1,036 | ₩ 234 |
Acquisitions | 1,514 | 1,617 | 1,177 |
Amortization | (905) | (868) | (145) |
Disposals | (20) | ||
Impairment | (52) | (623) | (230) |
Foreign exchange differences | 17 | 1 | |
Intangible assets at ending balance | 1,717 | 1,163 | 1,036 |
Software | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets at beginning balance | 991 | 64 | 115 |
Acquisitions | 951 | 1,523 | 36 |
Amortization | (807) | (597) | (87) |
Disposals | (8) | ||
Foreign exchange differences | 17 | 1 | |
Intangible assets at ending balance | 1,144 | 991 | 64 |
Industrial Property Rights | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets at beginning balance | 72 | 77 | 89 |
Acquisitions | 153 | 16 | 12 |
Amortization | (27) | (21) | (24) |
Disposals | (12) | ||
Intangible assets at ending balance | 186 | 72 | 77 |
License | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets at beginning balance | 57 | 843 | |
Acquisitions | 78 | 1,104 | |
Amortization | (5) | (241) | (31) |
Impairment | (52) | (623) | (230) |
Intangible assets at ending balance | 57 | 843 | |
Other Intangible Assets | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets at beginning balance | 43 | 52 | 30 |
Acquisitions | 410 | 25 | |
Amortization | (66) | (9) | (3) |
Intangible assets at ending balance | ₩ 387 | ₩ 43 | ₩ 52 |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Changes In Intangible Assets (Parenthetical) (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Intangible Assets [Abstract] | |||
Impairment loss | ₩ (52) | ₩ (623) | ₩ (230) |
Intangible Assets - Summary o_4
Intangible Assets - Summary of Classification of Amortization in Statements of Comprehensive Income (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Intangible Assets [Line Items] | |||
Amortization | ₩ 905 | ₩ 868 | ₩ 145 |
Cost of Revenues | |||
Disclosure Of Intangible Assets [Line Items] | |||
Amortization | 101 | 251 | 40 |
Selling, General and Administrative Expenses | |||
Disclosure Of Intangible Assets [Line Items] | |||
Amortization | 745 | 581 | 68 |
Research and Development | |||
Disclosure Of Intangible Assets [Line Items] | |||
Amortization | ₩ 59 | ₩ 36 | ₩ 37 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Defined Benefit Plans [Abstract] | |||
Defined contribution plan expenses | ₩ 1,812 | ₩ 1,546 | ₩ 1,219 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Additional Information (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Contingent Liabilities [Line Items] | ||
Right to develop and distribute games period | 5 years | |
Purchase obligations | ₩ 868 | ₩ 1,089 |
Bottom of Range | ||
Disclosure Of Contingent Liabilities [Line Items] | ||
Percentage of commitments | 20.00% | |
Top of Range | ||
Disclosure Of Contingent Liabilities [Line Items] | ||
Percentage of commitments | 40.00% |
Capital - Summary of Common Sha
Capital - Summary of Common Shares (Details) - KRW (₩) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of shares issued | 6,948,900 | ||
Common shares | ₩ 3,474,000,000 | ₩ 3,474,000,000 | |
Common Shares | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of authorized shares | 40,000,000 | 40,000,000 | 40,000,000 |
Value per share | ₩ 500 | ₩ 500 | ₩ 500 |
Number of shares issued | 6,948,900 | 6,948,900 | 6,948,900 |
Common shares | ₩ 3,474,450,000 | ₩ 3,474,450,000 | ₩ 3,474,450,000 |
Capital - Summary of Capital Su
Capital - Summary of Capital Surplus (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Classes Of Share Capital [Abstract] | |||
Additional paid in capital | ₩ 25,322 | ₩ 25,335 | ₩ 25,358 |
Other capital surplus | 1,806 | 1,806 | 1,806 |
Total | ₩ 27,128 | ₩ 27,141 | ₩ 27,164 |
Capital - Summary of Other Comp
Capital - Summary of Other Components of Equity (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign Currency Translation Adjustments | |||
Disclosure Of Accumulated Other Comprehensive Income [Line Items] | |||
Foreign currency translation adjustments | ₩ 274 | ₩ 138 | ₩ (40) |
Capital - Summary of Retained E
Capital - Summary of Retained Earnings (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications Of Assets Liabilities And Equities [Abstract] | |||
Retained earnings | ₩ 84,668 | ₩ 45,405 | ₩ 13,962 |
Capital - Additional Informatio
Capital - Additional Information (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of shares issued | 6,948,900 | ||
Preference Shares | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of shares reserved for issuance | 2,000,000 | ||
Number of shares issued | 0 | 0 | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Details of Revenue from Contracts with Customers based on Service Contract and Timing of Satisfaction of Performance Obligations (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | ₩ 360,967 | ₩ 286,770 |
At a Point in Time | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | 175 | 8 |
Over Time | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | 360,792 | 286,762 |
Subscription Contract | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | 310,006 | 260,888 |
Licensing Contract | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | 34,219 | 18,054 |
Others | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue from contracts with customers | ₩ 16,742 | ₩ 7,828 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Account Receivables, Incremental Costs of Obtaining a Contract, and Contract Liabilities (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Contract Assets And Contract Liabilities Line Item | |||
Accounts receivables | ₩ 32,253 | ₩ 60,664 | |
Incremental costs of obtaining a contract (Prepaid expenses) | 998 | 2,036 | |
Contract liabilities | 10,846 | 20,074 | ₩ 22,681 |
Subscription Revenue | |||
Contract Assets And Contract Liabilities Line Item | |||
Contract liabilities | 8,742 | 12,017 | |
Royalties and Licensing Fees | |||
Contract Assets And Contract Liabilities Line Item | |||
Contract liabilities | 1,403 | 7,223 | |
Website and Application Development | |||
Contract Assets And Contract Liabilities Line Item | |||
Contract liabilities | ₩ 701 | ₩ 834 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Contract Liabilities (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue From Contracts With Customers [Abstract] | ||
Balance at January 1 | ₩ 20,074 | ₩ 22,681 |
Increase related to subscription revenue | 66,232 | 12,017 |
Increase related to royalties and licensing fees | 540 | |
Increase related to website & application development contract | 5,038 | 834 |
Decrease upon satisfaction of performance obligations - subscription revenue | (69,507) | (12,409) |
Decrease upon satisfaction of performance obligations -royalties and licensing fees | (5,407) | (3,066) |
Decrease due to termination of contract | (413) | (495) |
Decrease due to satisfaction of performance obligations | (5,171) | (28) |
Balance at December 31 | ₩ 10,846 | ₩ 20,074 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) ₩ in Millions | 12 Months Ended |
Dec. 31, 2019KRW (₩) | |
Disclosure Of Revenue From Contracts With Customers [Line Items] | |
Amount of revenue recognized from previous period’s contract liabilities | ₩ 16,476 |
Within a Year | |
Disclosure Of Revenue From Contracts With Customers [Line Items] | |
Transaction price allocated to unsatisfied performance obligations, percentage | 99.00% |
Transaction price allocated to unsatisfied performance obligations | ₩ 10,748 |
More Than One Year | |
Disclosure Of Revenue From Contracts With Customers [Line Items] | |
Transaction price allocated to unsatisfied performance obligations, percentage | 1.00% |
Transaction price allocated to unsatisfied performance obligations | ₩ 98 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Transaction Price Allocated to Unsatisfied Performance Obligations (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subscription Revenue | ||
Disclosure Of Transaction Price Allocated To Remaining Performance Obligations [Line Items] | ||
Transaction price allocated to unsatisfied performance obligations | ₩ 8,742 | ₩ 12,017 |
Royalties and Licensing Fees | ||
Disclosure Of Transaction Price Allocated To Remaining Performance Obligations [Line Items] | ||
Transaction price allocated to unsatisfied performance obligations | 1,403 | 7,223 |
Website and Application Development | ||
Disclosure Of Transaction Price Allocated To Remaining Performance Obligations [Line Items] | ||
Transaction price allocated to unsatisfied performance obligations | ₩ 701 | ₩ 834 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Details of Incremental Costs of Obtaining Contract Recognized As Assets (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Assets Recognised From Costs To Obtain Or Fulfil Contracts With Customers [Abstract] | ||
Incremental costs of obtaining a contract | ₩ 998 | ₩ 2,036 |
Amortization costs recognized as cost of revenues | ₩ 2,036 | ₩ 2,231 |
Classification of Expenses By_3
Classification of Expenses By Nature - Summary of Expenses Classified By Nature (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expense By Nature [Abstract] | |||
Advertising expenses | ₩ 14,948 | ₩ 17,263 | ₩ 12,525 |
Fees and commissions | 249,210 | 195,173 | 83,356 |
Lease expenses | 1,496 | 2,604 | 2,205 |
Outsourcing expenses | 7,875 | 6,176 | 5,189 |
Salaries | 26,935 | 23,137 | 17,847 |
Expenses related to defined contribution plans | 1,807 | 1,546 | 1,219 |
Employee benefits | 3,026 | 2,655 | 2,169 |
Depreciation | 2,748 | 545 | 375 |
Amortization | 905 | 868 | 145 |
Other expenses | 3,214 | 2,915 | 2,455 |
Total expenses, by nature | ₩ 312,164 | ₩ 252,882 | ₩ 127,485 |
Selling, General and Administ_3
Selling, General and Administrative Expenses - Summary of Selling, General and Administrative Expenses (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Selling General And Administrative Expenses [Line Items] | |||
Advertising expenses | ₩ 14,948 | ₩ 17,263 | ₩ 12,525 |
Fees and commissions | 249,210 | 195,173 | 83,356 |
Lease expenses | 1,496 | 2,604 | 2,205 |
Salaries | 26,935 | 23,137 | 17,847 |
Expenses related to defined contribution plans | 1,812 | 1,546 | 1,219 |
Employee benefits | 3,026 | 2,655 | 2,169 |
Depreciation | 2,748 | 545 | 375 |
Amortization | 905 | 868 | 145 |
Other expenses | 3,214 | 2,915 | 2,455 |
Total selling, general and administrative expense | 36,873 | 34,820 | 28,012 |
Selling, General and Administrative Expenses | |||
Disclosure Of Selling General And Administrative Expenses [Line Items] | |||
Advertising expenses | 14,948 | 17,263 | 12,525 |
Fees and commissions | 7,262 | 5,727 | 6,594 |
Lease expenses | 665 | 941 | 686 |
Salaries | 8,643 | 7,080 | 5,468 |
Expenses related to defined contribution plans | 455 | 387 | 357 |
Employee benefits | 1,253 | 1,140 | 919 |
Depreciation | 761 | 233 | 150 |
Amortization | 745 | 581 | 68 |
Other expenses | 2,141 | 1,468 | 1,245 |
Total selling, general and administrative expense | ₩ 36,873 | ₩ 34,820 | ₩ 28,012 |
Other Income and Expenses - Sum
Other Income and Expenses - Summary of Details of Other Income (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expense [Abstract] | |||
Gain on disposal of property and equipment | ₩ 3 | ₩ 16 | ₩ 2 |
Reversal of other bad debt allowances | 35 | ||
Miscellaneous gain | 315 | 106 | 163 |
Total | ₩ 353 | ₩ 122 | ₩ 165 |
Other Income and Expenses - S_2
Other Income and Expenses - Summary of Details of Other Expense (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expense [Abstract] | |||
Loss on retirement and disposal of property and equipment | ₩ 5 | ₩ 37 | |
Impairment loss on intangible assets | ₩ 486 | 623 | 230 |
Miscellaneous loss | 7 | 14 | 1 |
Total | ₩ 493 | ₩ 642 | ₩ 268 |
Finance Income And Costs - Summ
Finance Income And Costs - Summary of Finance Income And Cost (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance income | ₩ 4,187 | ₩ 2,073 | ₩ 1,875 |
Finance costs | 1,594 | 1,002 | 1,452 |
Interest Income | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance income | 1,626 | 819 | 554 |
Unrealized Foreign Currency Gain | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance income | 119 | 81 | 288 |
Gain on Foreign Currency Transaction | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance income | 2,442 | 1,173 | 1,033 |
Unrealized Foreign Currency Loss | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance costs | 267 | 99 | 671 |
Loss on Foreign Currency Transaction | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance costs | 1,050 | 891 | 768 |
Others | |||
Disclosure Of Finance Income And Costs [Line Items] | |||
Finance costs | ₩ 277 | ₩ 12 | ₩ 13 |
Income Tax Expense - Schedule o
Income Tax Expense - Schedule of Income Tax Expense (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major Components Of Tax Expense Income [Abstract] | |||
Current tax on profit for the year | ₩ 11,775 | ₩ 7,430 | ₩ 4,180 |
Deferred tax expense (benefit) | (249) | (4,377) | (3,036) |
Income tax expense | ₩ 11,526 | ₩ 3,053 | ₩ 1,144 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Differences Between Tax Expense and Amount Arise Using Statutory Tax Rate Applicable to Profits of Group (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Abstract] | |||
Profit before income tax | ₩ 51,256 | ₩ 34,439 | ₩ 14,458 |
Income tax using the statutory tax rate of each country | 12,063 | 8,994 | 3,232 |
Expenses not deductible for tax purpose | 42 | 62 | 136 |
Tax amounts paid in a foreign country | 4,854 | 5,196 | 3,963 |
Changes in recognition of previously unrecognized deferred tax assets | (4,347) | ||
Utilization of previously unrecognized deferred tax asset | (5,347) | (3,307) | |
Change in deferred tax due to carry-forward deficits | (33) | (6,265) | (3,036) |
Effect of change foreign currency exchange rate | (12) | (221) | 495 |
Tax credit | (543) | ||
Others | (498) | 634 | (339) |
Total adjustments | (537) | (5,941) | (2,088) |
Income tax expense | ₩ 11,526 | ₩ 3,053 | ₩ 1,144 |
Effective tax rate | 22.00% | 9.00% | 8.00% |
Income Tax Expense - Schedule_2
Income Tax Expense - Schedule of Changes in Deferred Income Tax Assets (Liabilities) (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | ₩ 25 | |
Increase (decrease) | (18) | ₩ 25 |
Ending balance | 7 | 25 |
Intangible Assets | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 238 | |
Increase (decrease) | (17) | 238 |
Ending balance | 221 | 238 |
Other Non-current Assets | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 8 | 49 |
Increase (decrease) | 96 | (41) |
Ending balance | 104 | 8 |
Accounts Payables | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 531 | |
Increase (decrease) | 996 | 531 |
Ending balance | 1,527 | 531 |
Accrued Expenses | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Increase (decrease) | 39 | |
Ending balance | 39 | |
Deferred Revenue | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 60 | 180 |
Increase (decrease) | 614 | (120) |
Ending balance | 674 | 60 |
Allowance for Doubtful Account | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 264 | |
Increase (decrease) | 11 | 264 |
Ending balance | 275 | 264 |
Other Non-current Liabilities | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 46 | 39 |
Increase (decrease) | 7 | |
Ending balance | 46 | 46 |
Investments in Subsidiaries | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 2,747 | |
Increase (decrease) | 389 | (2,747) |
Ending balance | 389 | |
Others | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | (21) | (120) |
Increase (decrease) | (4) | 99 |
Ending balance | (25) | (21) |
Lease | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Increase (decrease) | 1 | |
Ending balance | 1 | |
Foreign Taxes Paid | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | (4) | |
Increase (decrease) | 4 | (4) |
Ending balance | (4) | |
Deferred Income Tax on Temporary Differences | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 1,147 | 2,895 |
Increase (decrease) | 2,111 | (1,748) |
Ending balance | 3,258 | 1,147 |
Deferred Tax Due to Carry-forward Deficits | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 1,951 | 108 |
Increase (decrease) | (1,918) | 1,843 |
Ending balance | 33 | 1,951 |
Deferred Tax Due to Tax Credit Carry-forward | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 4,315 | 33 |
Increase (decrease) | 56 | 4,282 |
Ending balance | 4,371 | 4,315 |
Deferred Tax Assets | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning balance | 7,413 | 3,036 |
Increase (decrease) | 249 | 4,377 |
Ending balance | ₩ 7,662 | ₩ 7,413 |
Income Tax Expense - Schedule_3
Income Tax Expense - Schedule of Unused Tax Loss Carryforwards and Unused Tax Credit Carryforwards Not Recognized as Deferred Income Tax Assets (Details) ₩ in Millions | Dec. 31, 2019KRW (₩) |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused loss carryforwards | ₩ 11,311 |
Unused tax credit carryforwards | 1,570 |
2019 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused tax credit carryforwards | 212 |
2020 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused tax credit carryforwards | 176 |
2021 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused tax credit carryforwards | 163 |
2022 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused loss carryforwards | 1,045 |
Unused tax credit carryforwards | 501 |
2023 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused loss carryforwards | 2,662 |
Unused tax credit carryforwards | 518 |
After 2023 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |
Unused loss carryforwards | ₩ 7,604 |
Income Tax Expense - Additional
Income Tax Expense - Additional Information (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Temporary difference related to investments in subsidiaries not recognized as deferred tax assets | ₩ 14,350 | ₩ 25,536 |
Temporary differences not recognized as deferred income tax assets | ₩ 895 | ₩ 18,453 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Components of Basic Earnings Per Share (Details) - KRW (₩) ₩ / shares in Units, ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic Earnings Per Share [Abstract] | |||
Profit attributable to owners of the Parent | ₩ 39,876 | ₩ 31,443 | ₩ 13,319 |
Weighted average outstanding shares of common shares | 6,948,900 | 6,948,900 | 6,948,900 |
Basic earnings per share | ₩ 5,738 | ₩ 4,525 | ₩ 1,917 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Diluted Earnings Per Share [Abstract] | |||
Weighted average dilutive potential ordinary shares outstanding | 0 | 0 | 0 |
Statements of Cash Flows - Summ
Statements of Cash Flows - Summary of Cash Generated From Operations (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Cash Flow Statement [Abstract] | |||
Profit (loss) for the year | ₩ 39,730 | ₩ 31,386 | ₩ 13,314 |
Depreciation expense | 2,748 | 545 | 375 |
Amortization expense | 905 | 868 | 145 |
Bad debt expenses | 281 | 151 | 74 |
Unrealized foreign currency loss | 267 | 99 | 671 |
Interest expense | 277 | ||
Loss on retirement and disposal of property and equipment | 5 | 37 | |
Impairment losses on intangible assets | 486 | 623 | 230 |
Post-employment benefit expense (Reversal of allowance for retirement benefit) | (4) | 50 | 164 |
Income tax expense | 11,526 | 3,053 | 1,144 |
Unrealized foreign currency gain | (119) | (81) | (288) |
Interest income | (1,626) | (819) | (554) |
Gain on disposal of property and equipment | (3) | (16) | (2) |
Reversal of other bad debt allowances | (34) | ||
Gain on disposal of intangible assets | (1) | ||
Change in accounts receivables | 30,143 | (18,573) | (27,786) |
Change in other receivables | 232 | 406 | 12 |
Change in prepaid expenses | 1,981 | 544 | (1,390) |
Change in advance payments | (204) | ||
Change in other current assets | (556) | 192 | (400) |
Change in other non-current assets | (1,860) | (1,137) | (449) |
Change in accounts payables | (37,145) | 27,319 | 35,046 |
Change in deferred revenue | (9,631) | (2,707) | 1,980 |
Change in withholdings | (397) | 580 | 1,239 |
Change in accrued expenses | 140 | (7) | 187 |
Change in other current liabilities | 113 | (13) | 68 |
Change in long-term deferred revenue | 0 | 100 | 4,111 |
Change in other non-current liabilities | (463) | 261 | |
Change in advance receipt | 434 | ||
Total | ₩ 37,220 | ₩ 42,571 | ₩ 28,189 |
Statements of Cash Flows - Su_2
Statements of Cash Flows - Summary of Significant Non-cash Transactions (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Cash Flow Statement [Abstract] | ||
Reclassification of advance payments to intangible assets | ₩ 120 | |
Increase of accounts payables due to software purchasing | 33 | ₩ 226 |
Additions of right-of-use assets | ₩ 2,637 |
Statements of Cash Flows - Su_3
Statements of Cash Flows - Summary of Changes in Liabilities Arising From Financing Activities (Details) ₩ in Millions | 12 Months Ended |
Dec. 31, 2019KRW (₩) | |
Disclosure Of Cash Flow Statement [Abstract] | |
Adjustment due to adoption of IFRS 16 | ₩ 4,401 |
Beginning of the year after adjustment | 4,401 |
Cash flows from financing activities – Repayment of lease liabilities | (2,034) |
Interest paid | (277) |
Non-cash transactions | |
Acquisitions – leases | 2,637 |
Interest expense | 277 |
Early termination of leases | (15) |
Exchange differences | 5 |
Ending of the year | ₩ 4,994 |
Lease - Additional Information
Lease - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of Range | |
Lease [Line Items] | |
Lease period | 1 year |
Top of Range | |
Lease [Line Items] | |
Lease period | 5 years |
Lease - Summary of Amounts Rela
Lease - Summary of Amounts Relating to Leases in Consolidated Statement of Financial Position (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lease [Line Items] | |||
Right-of-use assets | ₩ 4,946 | ₩ 4,453 | |
Lease liabilities | |||
Current | 1,986 | ₩ 1,672 | |
Non-current | 3,008 | 2,729 | |
Total | 4,994 | ₩ 4,401 | |
Offices | |||
Lease [Line Items] | |||
Right-of-use assets | 3,642 | 2,752 | |
Vehicles | |||
Lease [Line Items] | |||
Right-of-use assets | 266 | 53 | |
Equipment | |||
Lease [Line Items] | |||
Right-of-use assets | ₩ 1,038 | ₩ 1,648 |
Lease - Summary of Changes in R
Lease - Summary of Changes in Right-of-Use Assets (Detail) ₩ in Millions | 12 Months Ended |
Dec. 31, 2019KRW (₩) | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Balance as of January 1, 2019 | ₩ 4,453 |
Depreciation | (2,135) |
Additions | 2,637 |
Removal | (15) |
Translation differences | 6 |
Balance as of December 31, 2019 | 4,946 |
Offices | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Balance as of January 1, 2019 | 2,752 |
Depreciation | (901) |
Additions | 1,791 |
Balance as of December 31, 2019 | 3,642 |
Vehicles | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Balance as of January 1, 2019 | 53 |
Depreciation | (92) |
Additions | 320 |
Removal | (15) |
Balance as of December 31, 2019 | 266 |
Equipment | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Balance as of January 1, 2019 | 1,648 |
Depreciation | (1,142) |
Additions | 526 |
Translation differences | 6 |
Balance as of December 31, 2019 | ₩ 1,038 |
Lease - Summary of Amounts Reco
Lease - Summary of Amounts Recognized in Consolidated Statement of Profit or Loss (Details) ₩ in Millions | 12 Months Ended |
Dec. 31, 2019KRW (₩) | |
Presentation Of Leases For Lessee [Abstract] | |
Interest expense relating to lease liabilities (included in finance cost) | ₩ 277 |
Expense relating to short-term leases | 322 |
Expense relating to leases of low-value assets that are not short-term leases | ₩ 10 |
Lease - Summary of Amounts Re_2
Lease - Summary of Amounts Relating to Leases in Consolidated Statement of Profit or Loss (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Presentation Of Leases For Lessee [Abstract] | ||
Total cash outflows of leases | ₩ 2,644 | ₩ 430 |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Company's Debt to Equity Ratio (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Financial Instruments [Abstract] | ||||
Total liabilities | ₩ 59,659 | ₩ 97,622 | ||
Total equity | ₩ 115,766 | ₩ 75,552 | ₩ 43,998 | ₩ 30,647 |
Debt-to-equity ratio | 52.00% | 129.00% |
Financial Risk Management - S_2
Financial Risk Management - Schedule of Financial Assets and Liabilities Exposed in Foreign Currency Risk (Details) € in Millions, ₫ in Millions, ₩ in Millions, ฿ in Millions, ¥ in Millions, £ in Millions, Rp in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019KRW (₩) | Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019EUR (€) | Dec. 31, 2019IDR (Rp) | Dec. 31, 2019THB (฿) | Dec. 31, 2019TWD ($) | Dec. 31, 2019VND (₫) | Dec. 31, 2019GBP (£) | Dec. 31, 2019HKD ($) | Dec. 31, 2018KRW (₩) | Dec. 31, 2018USD ($) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018EUR (€) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018THB (฿) | Dec. 31, 2018TWD ($) | Dec. 31, 2018VND (₫) | Dec. 31, 2018HKD ($) |
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | ₩ 15,878 | ₩ 13,617 | |||||||||||||||||
Financial liabilities | 10,542 | 8,631 | |||||||||||||||||
USD | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 9,403 | $ 8,100,729 | 10,761 | $ 9,623,496 | |||||||||||||||
Financial liabilities | 6,696 | $ 5,775,721 | 8,373 | $ 7,486,441 | |||||||||||||||
JPY | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 4,854 | ¥ 456,300,430 | 1,053 | ¥ 103,945,453 | |||||||||||||||
Financial liabilities | 3,621 | ¥ 340,468,613 | 11 | ¥ 1,042,657 | |||||||||||||||
EUR | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 439 | € 338,598 | 460 | € 359,772 | |||||||||||||||
Financial liabilities | 1 | € 1,000 | |||||||||||||||||
IDR | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 1 | Rp 12,955,000 | 13 | Rp 172,822,025 | |||||||||||||||
Financial liabilities | 1 | Rp 17,023,944 | Rp 3,098,944 | ||||||||||||||||
THB | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 1 | ฿ 28,510 | 1 | ฿ 34,633 | |||||||||||||||
Financial liabilities | ฿ 7,379 | 6 | ฿ 173,389 | ||||||||||||||||
TWD | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | 1,125 | $ 29,236,669 | 1,328 | $ 36,311,172 | |||||||||||||||
Financial liabilities | 214 | $ 5,567,672 | 241 | $ 6,597,223 | |||||||||||||||
VND | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | ₫ 9,270,000 | ₩ 1 | ₫ 9,270,000 | ||||||||||||||||
Financial liabilities | ₫ | ₫ 3,243,600 | ₫ 3,243,600 | |||||||||||||||||
GBP | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial liabilities | 9 | £ 5,625 | |||||||||||||||||
HKD | |||||||||||||||||||
Disclosure Of Financial Instruments [Line Items] | |||||||||||||||||||
Financial assets | ₩ 55 | $ 368,048 | $ 2,731 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Details) - KRW (₩) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Financial Instruments [Line Items] | ||
Financial assets | ₩ 15,878,000,000 | ₩ 13,617,000,000 |
Financial liabilities | 10,542,000,000 | 8,631,000,000 |
Variable Interest Rate | ||
Disclosure Of Financial Instruments [Line Items] | ||
Borrowings | ₩ 0 | ₩ 0 |
Currency Risk | ||
Disclosure Of Financial Instruments [Line Items] | ||
Foreign exchange risk movement in currency percentage | 10.00% | |
Price Risk | ||
Disclosure Of Financial Instruments [Line Items] | ||
Financial assets | ₩ 0 | |
Financial liabilities | ₩ 0 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Impact of Fluctuation in Foreign Currency Exchange Rates on Company's Monetary Assets and Liabilities (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Financial Instruments [Line Items] | ||
Increase in company's monetary assets and liabilities with the effect of foreign currency exchange rate | ₩ 534 | ₩ 499 |
Decrease in company's monetary assets and liabilities with the effect of foreign currency exchange rate | (534) | (499) |
USD | ||
Disclosure Of Financial Instruments [Line Items] | ||
Increase in company's monetary assets and liabilities with the effect of foreign currency exchange rate | 271 | 239 |
Decrease in company's monetary assets and liabilities with the effect of foreign currency exchange rate | (271) | (239) |
JPY | ||
Disclosure Of Financial Instruments [Line Items] | ||
Increase in company's monetary assets and liabilities with the effect of foreign currency exchange rate | 123 | 104 |
Decrease in company's monetary assets and liabilities with the effect of foreign currency exchange rate | (123) | (104) |
Others | ||
Disclosure Of Financial Instruments [Line Items] | ||
Increase in company's monetary assets and liabilities with the effect of foreign currency exchange rate | 140 | 156 |
Decrease in company's monetary assets and liabilities with the effect of foreign currency exchange rate | ₩ (140) | ₩ (156) |
Financial Risk Management - S_3
Financial Risk Management - Summary of Maximum Exposure to Credit Risk (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | ₩ 153,240 | ₩ 158,155 |
Cash and Cash Equivalents | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | 79,428 | 86,051 |
Short Term Financial Instruments | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | 39,500 | 9,500 |
Accounts Receivables | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | 32,253 | 60,664 |
Other Receivables | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | 56 | 255 |
Other Current Assets | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | 233 | 191 |
Other Non-current Financial Assets | ||
Disclosure Of Credit Risk Exposure [Line Items] | ||
Maximum exposure to credit risk | ₩ 1,770 | ₩ 1,494 |
Financial Risk Management - S_4
Financial Risk Management - Summary of Financial Liabilities by Maturity (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | ₩ 44,352 | ₩ 73,106 |
Accounts Payable | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 37,689 | 71,928 |
Accrued Expenses | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,175 | 1,031 |
Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 5,488 | 147 |
Less Than Three months | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 23,147 | 71,412 |
Less Than Three months | Accounts Payable | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 21,374 | 70,381 |
Less Than Three months | Accrued Expenses | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,175 | 1,031 |
Less Than Three months | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 598 | |
Carrying amount [member] | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 43,858 | 73,106 |
Carrying amount [member] | Accounts Payable | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 37,689 | 71,928 |
Carrying amount [member] | Accrued Expenses | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,175 | 1,031 |
Carrying amount [member] | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 4,994 | 147 |
More Than One Year | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 428 | 34 |
More Than One Year | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 428 | 34 |
Three Months to One Year | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 17,775 | 1,660 |
Three Months to One Year | Accounts Payable | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 16,122 | 1,547 |
Three Months to One Year | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,653 | ₩ 113 |
One Year to Two Year | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,973 | |
One Year to Two Year | Accounts Payable | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 193 | |
One Year to Two Year | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,780 | |
Two Year to Three Year | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | 1,029 | |
Two Year to Three Year | Other Liabilities | ||
Disclosure Of Maturity Analysis For Financial Assets Held For Managing Liquidity Risk [Line Items] | ||
Other payable | ₩ 1,029 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Operating Segments [Line Items] | |||
Revenue | ₩ 360,967 | ₩ 286,770 | ₩ 141,623 |
Depreciation amortization | 3,653 | 1,414 | 520 |
Operating profit (loss) | 48,663 | 33,368 | 14,035 |
Elimination of intersegment amounts [member] | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | (53,445) | (21,408) | (6,893) |
Depreciation amortization | (12) | (6) | |
Operating profit (loss) | 1,692 | 3,201 | 982 |
Reportable Segments | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | 414,412 | 308,178 | 148,516 |
Depreciation amortization | 3,653 | 1,426 | 526 |
Operating profit (loss) | 46,971 | 30,167 | 13,053 |
Reportable Segments | Online | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | 48,182 | 41,288 | 53,790 |
Depreciation amortization | 1,401 | 238 | 222 |
Operating profit (loss) | 7,754 | 4,286 | 14,536 |
Reportable Segments | Mobile | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | 346,878 | 257,364 | 87,194 |
Depreciation amortization | 1,145 | 473 | 268 |
Operating profit (loss) | 38,655 | 24,795 | (2,476) |
Reportable Segments | Others | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | 19,352 | 9,526 | 7,532 |
Depreciation amortization | 1,107 | 715 | 36 |
Operating profit (loss) | ₩ 562 | ₩ 1,086 | ₩ 993 |
Segment Information - Summary R
Segment Information - Summary Revenue from External Customers by Country (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | ₩ 360,967 | ₩ 286,770 | ₩ 141,623 |
Korea | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 45,273 | 80,814 | 28,708 |
Taiwan | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 52,118 | 98,210 | 76,121 |
Japan | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 28,469 | 9,767 | 9,491 |
The United States of America | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 55,062 | 10,572 | 7,774 |
Thailand | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 62,043 | 43,846 | 6,569 |
The Philippines | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 30,951 | 15,539 | 883 |
Others | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | 64,696 | 18,663 | 11,002 |
IDAHO | |||
Disclosure Of Geographical Areas [Line Items] | |||
Revenue | ₩ 22,355 | ₩ 9,359 | ₩ 1,075 |
Segment Information - Summary_2
Segment Information - Summary of Non-Current Assets by Geographical Regions (Details) - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Geographical Areas [Line Items] | |||
Non-current assets | ₩ 9,902 | ₩ 4,099 | ₩ 2,582 |
Domestic | |||
Disclosure Of Geographical Areas [Line Items] | |||
Non-current assets | 5,732 | 3,054 | 2,114 |
Overseas | |||
Disclosure Of Geographical Areas [Line Items] | |||
Non-current assets | ₩ 4,170 | ₩ 1,045 | ₩ 468 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Operating Segments [Line Items] | |||
Number of external customers | 0 | 0 | 0 |
Top of Range | |||
Disclosure Of Operating Segments [Line Items] | |||
Percentage of consolidated sales to external customers | 10.00% | 10.00% | 10.00% |
Transactions with Related Par_3
Transactions with Related Parties - Additional Information (Details) - Transaction | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Parent entity | GungHo Online Entertainment, Inc. | ||
Number of related party transactions | 0 | 0 | 0 |
GungHo Online Entertainment, Inc [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Percentage of ownership held by related party | 59.31% |
Transactions with Related Par_4
Transactions with Related Parties - Summary of Account Balances with Related Parties (Details) - GungHo Online Entertainment, Inc [Member] - KRW (₩) ₩ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Receivable | ₩ 2,722 | ₩ 1,053 |
Payables | ₩ 74 | ₩ 3 |
Transactions with Related Par_5
Transactions with Related Parties - Summary of Transactions with Related Parties (Details) - GungHo Online Entertainment, Inc [Member] - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | ₩ 27,484 | ₩ 10,516 | ₩ 10,529 |
Purchase | ₩ 60 | ₩ 3 | ₩ 36 |
Transactions with Related Par_6
Transactions with Related Parties - Summary of Key Management Personnel Compensation (Details) - KRW (₩) ₩ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Salary | ₩ 866 | ₩ 690 | ₩ 629 |