2021 Consolidated

KOREAN AIR LINES CO., LTD.
AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AS OF AND
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
ATTACHMENT: INDEPENDENT AUDITORS’ REPORT

Deloitte Anjin LLC
9F., One IFC,
10, Gukjegeumyung-ro,
Youngdeungpo-gu, Seoul
07326, Korea
Tel: +82 (2) 6676 1000

Fax: +82 (2) 6674 2114
www.deloitteanjin.co.kr
INDEPENDENT AUDITORS’ REPORT
English Translation of Independent Auditors’ Report Originally Issued in Korean on March 11, 2022.
To the Shareholders and the Board of Directors of

Korean Air Lines Co., Ltd.:
Report on the Audited Consolidated Financial Statements
Audit Opinion
We have audited the consolidated financial statements of Korean Air Lines Co., Ltd. and its subsidiaries (the
“Group”), which comprise the consolidated statements of financial position as of December 31, 2021 and 2020, and
the related consolidated statements of comprehensive income (loss), consolidated statements of changes in equity
and consolidated statements of cash flows, all expressed in Korean won, for the years then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
financial position of the Group as of December 31, 2021 and 2020, and its financial performance and its cash flows
for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRSs”).
Basis for Audit Opinion
We conducted our audits in accordance with the Korean Standards on Auditing (“KSAs”). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audits of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the ethical
requirements that are relevant to our audits of the consolidated financial statements in the Republic of Korea, and
we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasized Matters
The users of consolidated financial statements need to be attentive to the following matters that do not affect our
audit opinion:
- The operating environment uncertainty caused by COVID-19
Attention needs to be paid to Note 46 to the consolidated financial statements. Due to the unprecedented trend of
Corona Virus Infectious Disease-19 (“COVID-19”) from 2020 to the end of the current period, the world is facing
difficult economic conditions and uncertainties due to prolonged situations. In particular, the global air travel
demand has not been recovered until the end of the current period due to the shrinking travel demand and
restrictions on entry by many countries. As a result, the Group's existing major sales, international passenger
transportation and operating cash flows have not recovered.
The ultimate impact of this on the Group's financial position and business performance cannot be measured at this
time, and our audit opinion is not affected by this matter.
Key Audit Matters
The key audit matters are those matters that, in our professional judgment, were of most significance in our
audits of the consolidated financial statements of the current period. These matters were addressed in the
context of our audits of the consolidated financial statements as a whole, and in forming our opinion thereon,
and we do not provide a consolidated opinion on these matters.
- Recognition of deferred revenue
The impact of deferred revenue on financial statements is important, and the expected usage rate and individual
selling value, which are management estimates to measure deferred revenue, are highly complex and sensitive to
assumptions. In addition, in the COVID-19 situation, arbitrary judgment on the selection of those assumptions may
be involved, so there is a possibility of exposure to significant risks.
We determined the recognition of deferred revenue aforementioned as key audit matter considering its significance
to the consolidated financial statements.
We have performed the following audit procedures to address the above key audit matter:
x Understanding the Group's accounting policies and evaluating compliance with K-IFRSs.
x Understanding the process related to mileage accumulation and exhaustion, deferred revenue measurement and
evaluating the design adequacy and operational effectiveness of related internal control.
x Use of computer audit experts to evaluate the effectiveness of the design and operation of general and automatic
control of Skypass, which is a mileage operation system.
x In order to confirm the occurrence of accumulated mileage and exhaustion during the current period, a
document inspection using a sampling method is conducted.
x In order to verify the accuracy of the basic input variables used by the Group to estimate the individual mileage
selling price, document inspection and recalculation verification are made using the sampling method.
x Reasonable evaluation of the method and estimate used by the Group to estimate the estimated mileage usage
rate.
x Recalculation verification of deferred revenue balance using the Group's main estimates and remaining mileage
data.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation of the accompanying consolidated financial statements in
accordance with K-IFRSs, and for such internal control as they determine is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management of the Group is responsible for assessing the
Group’s ability to continue as a going concern; disclosing, as applicable, matters related to going concern; and
using the going-concern basis of accounting, unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audits of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
x Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is
sufficient and appropriate to provide a basis for our audit opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations or override of internal control.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
x Conclude on the appropriateness of the management’s use of the going-concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
x Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
x Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We are solely responsible for our audit
opinion.
We will communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audits and significant audit findings, including any significant deficiencies in internal control that we
identify during our audits.
We will also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors’ report, unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditors’ report is Seung Ryel Lim, certified
public accountant.
March 11, 2022
Notice to Readers
This report is effective as of March 11, 2022, the auditors’ report date. Certain subsequent events or
circumstances may have occurred between the auditors’ report date and the time the auditors’ report is read.
Such events or circumstances could significantly affect the consolidated financial statements and may result
in modifications to the auditors’ report.
KOREAN AIR LINES CO., LTD. AND ITS SUBSIDIARIES
(the “Group”)
CONSOLIDATED FINANCIAL STATEMENTS AS OF AND

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
The accompanying consolidated financial statements, including all footnote disclosures, were
prepared by the Group.
Woo, Kee Hong

President
Korean Air Lines Co., Ltd. and Subsidiaries
Consolidated Statements of Financial Position
As of December 31, 2021 and 2020
Translation into
Korean won US dollars (Note 2)
December 31, December 31, December 31, December 31,
Assets Notes 2021 2020 2021 2020
(In millions) (In thousands)
Current assets:
Cash and cash equivalents 5,40 ୸ 1,185,375 ୸ 1,314,566 $ 999,895 $ 1,108,871
Short-term financial instruments 6,21,40 2,917,431 492,657 2,460,929 415,569
Current portion of lease receivables 11,16,40 120,573 107,480 101,706 90,662
Trade and other receivables 7,40,41 1,095,074 768,793 923,723 648,497
Amount due from customers for contract work 33 32,139 37,029 27,110 31,235
Current portion of financial assets at amortized
cost 40 12 210 10 177
Current portion of financial derivative assets 26,40 13,068 - 11,023 -
Inventories 10 597,064 551,195 503,639 464,947
Current tax assets 343 1,062 289 896
Other financial assets 9,40 24,732 46,749 20,862 39,434
Other current assets 19,33 116,833 133,720 98,552 112,796
Assets held for sale 16,45 538,353 549,057 454,115 463,144
Total current assets 6,640,997 4,002,518 5,601,853 3,376,228
Non-current assets:
Long-term financial instruments 6,21,40 12,155 10,099 10,253 8,519
Long-term trade and other receivables 7,40,41 37 15 31 13
Financial assets at fair value 6,8,40 629,796 468,270 531,249 394,998
Financial assets at amortized cost 40 75 77 63 65
Lease receivables 11,16 242,127 311,508 204,240 262,765
Financial derivative assets 26,40 53,756 - 45,345 -
Investments in associates 13 6,229 6,402 5,254 5,400
Property, aircraft and equipment 15,16 16,914,084 18,482,140 14,267,469 15,590,164
Investments in properties 14,16,17 262,510 256,577 221,434 216,429
Intangible assets 16,18 275,984 268,145 232,800 226,187
Deferred tax assets 37 739,747 876,591 623,996 739,427
Other financial assets 9,40 123,790 134,147 104,420 113,156
Other non-current assets 19,33 770,616 373,572 650,035 315,119
Total non-current assets 20,030,906 21,187,543 16,896,589 17,872,242
Total assets ୸ 26,671,903 ୸ 25,190,061 $ 22,498,442 $ 21,248,470
(Continued)
Consolidated Statements of Financial Position
As of December 31, 2021 and 2020
Translation into
December 31, December 31, December 31, December 31,
Liabilities Notes 2021 2020 2021 2020
Current liabilities:
Trade and other payables 20,40,41 ୸ 874,396 ୸ 744,739 $ 737,576 $ 628,207
16,21,40,
Short-term borrowings 41 985,568 1,900,887 831,352 1,603,447
Current portion of long-term borrowings 16,21,40 2,989,030 2,559,590 2,521,324 2,159,081
16,22,40,
Current portion of lease obligations 41 1,382,926 1,387,671 1,166,534 1,170,536
Current portion of financial derivative liabilities 26,40 7,295 22,642 6,154 19,099
Current portion of provisions 24,43 131,797 54,865 111,174 46,280
Current portion of deferred revenue 25,33 311,821 411,721 263,029 347,297
Amount due to customers for contract work 33 18,322 34,007 15,455 28,686
Current tax liabilities 230,260 93,947 194,230 79,247
Other financial liabilities 27 4,122 6,268 3,477 5,287
Other current liabilities 25,28,33 1,460,735 716,952 1,232,168 604,768
Liabilities held for sale 45 48,655 54,486 41,042 45,960
Total current liabilities 8,444,927 7,987,775 7,123,515 6,737,895
Non-current liabilities:
Long-term trade and other payables 20,40,41 20,445 22,629 17,246 19,088
Long-term borrowings 16,21,40 919,204 1,770,833 775,372 1,493,744
Debentures 21,40 1,058,231 1,244,414 892,645 1,049,695
ABS loans 6,21,40 953,820 1,484,933 804,572 1,252,580
16,22,40,
Lease obligations 41 4,218,090 5,189,532 3,558,068 4,377,505
Net defined benefit liabilities 23 1,622,481 1,605,301 1,368,605 1,354,113
Provisions 24,43 139,707 217,843 117,846 183,756
Deferred revenue 25,33 2,265,466 2,044,193 1,910,979 1,724,330
Financial derivative liabilities 26,40 1,650 114,826 1,392 96,859
Deferred tax liabilities 37 26,601 22,813 22,439 19,243
Other financial liabilities 27 39,489 44,425 33,310 37,474
Other non-current liabilities 28,33 96,103 128,820 81,065 108,663
Total non-current liabilities 11,361,287 13,890,562 9,583,539 11,717,050
Total liabilities 19,806,214 21,878,337 16,707,054 18,454,945
Equity:
Share capital 1,29 1,744,658 876,602 1,471,664 739,437
Other capital surplus 30 4,248,400 2,196,734 3,583,636 1,853,002
Other capital components 15,32,45 650,769 655,667 548,941 553,072
(Directly associated with assets classified as
held for sale
2021: ୸61,965 million, $52,270 thousand
2020: ୸64,139 million, $54,103 thousand)
Retained earnings (accumulated deficit) 31 110,077 (522,503) 92,853 (440,745)
Equity attributable to owners of the Parent
Company 6,753,904 3,206,500 5,697,094 2,704,766
Non-controlling interest 12 111,785 105,224 94,294 88,759
Total equity 6,865,689 3,311,724 5,791,388 2,793,525
Total liabilities and equity ୸ 26,671,903 ୸ 25,190,061 $ 22,498,442 $ 21,248,470
(Concluded)
The US dollar figures are provided for information purpose only and do not form part of the consolidated financial statements.
Refer to Note 2.
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2021 and 2020
Translation into
Notes 2021 2020 2021 2020
(In millions of Korean won and thousands of US dollars,
except for earnings (loss) per share)
Sales 4,33,41 ୸ 9,016,825 ୸ 7,610,531 $ 7,605,926 $ 6,419,680
Cost of sales 38,41 6,912,047 6,850,104 5,830,491 5,778,240

͑ ͑ ͑ ͑
Gross profit 2,104,778 760,427 1,775,435 641,440
Selling and administrative expenses 34,38,41 686,809 653,103 579,341 550,909

͑ ͑ ͑ ͑
Operating income 1,417,969 107,324 1,196,094 90,531
Financial income 35 361,334 84,176 304,795 71,005

Financial costs 35 438,002 752,030 369,466 634,357
Share in profit (loss) of associates 13 (29) (857) (24) (723)
Other non-operating income 36 576,979 906,206 486,697 764,408
Other non-operating expenses 36 1,075,137 1,280,516 906,906 1,080,148
Profit (loss) before income tax expense 843,114 (935,697) 711,190 (789,284)
Income tax expense (benefit) 37 264,332 (112,240) 222,971 (94,677)
Profit (loss) from continuing operations 578,782 (823,457) 488,219 (694,607)
Profit from discontinued operations 44 - 593,438 - 500,580

Profit (loss) for the year ୸ 578,782 ୸ (230,019) $ 488,219 $ (194,027)
Other comprehensive income (loss)

Items that will not be reclassified to profit or
loss
Remeasurements of net defined benefit 23,31 65,414 83,193 55,178 70,175
liabilities
Gain (loss) on valuation of financial assets at 32
FVTOCI 18,736 10,881 15,804 9,178
Revaluation surplus 15,32 - (11,991) - (10,115)
Items that may be subsequently reclassified to
profit or loss
Shares of other comprehensive income (loss) 13,32
of associates, net of tax (144) (29) (121) (24)
Foreign currency translation adjustments, net 32
of tax (11,779) 15,925 (9,936) 13,433
Other comprehensive income (loss) for the

year, net of tax 72,227 97,979 60,925 82,647
Total comprehensive income (loss) for the year ୸ 651,009 ୸ (132,040) $ 549,144 $ (111,380)
Profit (loss) for the year attributable to:

Owners of the Parent Company ୸ 577,684 ୸ (211,546) $ 487,292 $ (178,445)
Non-controlling interest 1,098 (18,473) 927 (15,582)
୸ 578,782 ୸ (230,019) $ 488,219 $ (194,027)
Total comprehensive income (loss) for the year
attributable to:
Owners of the Parent Company ୸ 644,418 ୸ (113,872) $ 543,584 $ (96,055)
Non-controlling interest 12 6,591 (18,168) 5,560 (15,325)
୸ 651,009 ୸ (132,040) $ 549,144 $ (111,380)
(Continued)
Consolidated Statements of Comprehensive Income (Loss)
Translation into
Notes 2021 2020 2021 2020
(In millions of Korean won and thousands of US dollars,
except for earnings (losses) per share)
Earnings (losses) attributes to common shares 39

Basic earnings (losses) from continuing
operations ୸ 1,743 ୸ (5,366) $ 1.47 $ (4.53)
Diluted earnings (losses) from continuing
operations ୸ 1,662 ୸ (5,366) $ 1.40 $ (4.53)
Basic earnings from discontinued operations ୸ - ୸ 3,691 $ - $ 3.11
Diluted earnings from discontinued
operations ୸ - ୸ 3,497 $ - $ 2.95
Earnings (losses) attributes to preferred shares
Basic and diluted earnings (losses) from
continuing operations ୸ 1,793 ୸ (5,526) $ 1.51 $ (4.66)
Basic and diluted earnings from
discontinued operations ୸ - ୸ 3,801 $ - $ 3.21
(Concluded)
The US dollar figures are provided for information purpose only and do not form part of the consolidated financial statements. Refer to Note 2.
The above consolidated statements of comprehensive income (loss) should be read in conjunction with the accompanying notes.
Consolidated Statements of Changes in Equity
Korean won
Attributable to owners of the Parent Company
Other capital surplus
Additional Other capital Retained earnings Non-controlling
Share capital paid-in capital Others components (accumulated deficit) Total interest Total equity
(In millions)
Balance at January 1, 2020 ୸ 479,777 ୸ 719,666 ୸ 1,152,073 ୸ 650,457 ୸ (345,777) ୸ 2,656,196 ୸ 124,597 ୸ 2,780,793
Dividends - - - - - - (1,205) (1,205)
Loss for the year - - - - (211,546) (211,546) (18,473) (230,019)
Other comprehensive income (loss) - - - 13,277 84,397 97,674 305 97,979
Issuance of share capital 396,825 722,484 - - - 1,119,309 - 1,119,309
Issuance of hybrid securities - - 299,967 - - 299,967 - 299,967
Repayment of hybrid securities - - (697,450) - - (697,450) - (697,450)
Dividends for hybrid securities - - - - (57,644) (57,644) - (57,644)
Transfer of revaluation surplus - - - (8,067) 8,067 - - -
Others - - (6) - - (6) - (6)
Balance at December 31, 2020 ୸ 876,602 ୸ 1,442,150 ୸ 754,584 ୸ 655,667 ୸ (522,503) ୸ 3,206,500 ୸ 105,224 ୸ 3,311,724
Balance at January 1, 2021 ୸ 876,602 ୸ 1,442,150 ୸ 754,584 ୸ 655,667 ୸ (522,503) ୸ 3,206,500 ୸ 105,224 ୸ 3,311,724
Dividends - - - - - - (27) (27)
Profit for the year - - - - 577,684 577,684 1,098 578,782
Other comprehensive income (loss) - - - 2,929 63,805 66,734 5,493 72,227
Issuance of share capital 868,056 2,431,705 - - - 3,299,761 - 3,299,761
Acquisition of fractional share - - 1 - - 1 (3) (2)
Others - - (40) - - (40) - (40)
Balance at December 31, 2021 ୸ 1,744,658 ୸ 3,873,855 ୸ 374,545 ୸ 650,769 ୸ 110,077 ୸ 6,753,904 ୸ 111,785 ୸ 6,865,689
Consolidated Statements of Changes in Equity
Translation into US dollars (Note 2)

Attributable to owners of the Parent Company
Other capital surplus
Additional Other capital Retained earnings Non-controlling
Share capital paid-in capital Others components (accumulated deficit) Total interest Total equity
(In thousands)
Balance at January 1, 2020 $ 404,704 $ 607,057 $ 971,803 $ 548,677 $ (291,672) $ 2,240,569 $ 105,100 $ 2,345,669
Dividends - - - - - - (1,016) (1,016)
Loss for the year - - - - (178,445) (178,445) (15,582) (194,027)
Other comprehensive income (loss) - - - 11,199 71,191 82,390 257 82,647
Issuance of share capital 334,733 609,434 - - - 944,167 - 944,167
Issuance of hybrid securities - - 253,030 - - 253,030 - 253,030
Others - - (5) - - (5) - (5)
Balance at December 31, 2020 $ 739,437 $ 1,216,491 $ 636,511 $ 553,072 $ (440,745) $ 2,704,766 $ 88,759 $ 2,793,525
Balance at January 1, 2021 $ 739,437 $ 1,216,491 $ 636,511 $ 553,072 $ (440,745) $ 2,704,766 $ 88,759 $ 2,793,525
Dividends - - - - - - (23) (23)
Profit for the year - - - - 487,292 487,292 927 488,219
Other comprehensive income (loss) - - - 2,471 53,821 56,292 4,633 60,925
Issuance of share capital 732,227 2,051,207 - - - 2,783,434 - 2,783,434
Acquisition of fractional share - - 1 - - 1 (2) (1)
Others - - (34) - - (34) - (34)
Balance at December 31, 2021 $ 1,471,664 $ 3,267,698 $ 315,938 $ 548,941 $ 92,853 $ 5,697,094 $ 94,294 $ 5,791,388
The US dollar figures are provided for information purpose only and do not form part of the consolidated financial statements. Refer to Note 2.
The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
Consolidated Statements of Cash Flows
‫ٻ‬
Translation into
2021 2020 2021 2020
Cash flows from operating activities
Cash generated from operations
Profit (loss) for the year ୸ 578,782 ୸ (230,019) $ 488,219 $ (194,027)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Loss (reversal) on valuation of inventories 1,628 (1,998) 1,373 (1,685)
Provision for leased aircraft maintenance 38,374 18,786 32,369 15,846
Retirement benefit costs 185,992 199,159 156,889 167,996
Depreciation 1,662,980 1,938,062 1,402,767 1,634,806
Amortization 32,385 31,057 27,318 26,197
Bad debt expenses (reversal) (116) 2,215 (98) 1,868
Interest expense 390,934 513,863 329,763 433,457
Loss on valuation of derivatives 3,344 128,871 2,821 108,706
Loss on derivative transactions 43,724 109,296 36,882 92,194
Loss on valuation of equity method 29 857 24 723
Loss on foreign currency translation 484,419 135,620 408,620 114,399
Loss on foreign currency transaction 124,746 81,111 105,226 68,419
Other bad debt expenses 7,931 565 6,690 477
Loss on disposal of property, aircraft and equipment 2,678 64,960 2,259 54,795
Impairment loss on property, aircraft and equipment 275,442 638,883 232,342 538,914
Loss on disposal of intangible assets 184 75 155 63
Impairment loss on intangible assets - 2,919 - 2,462
Loss on disposal of assets held for sale - 15 - 13
Loss on valuation of financial assets at FVTPL 14 - 12 -
Income tax expense 264,332 110,878 222,971 93,528
Other expenses 41,565 85,096 35,061 71,781
Interest income (70,130) (42,437) (59,156) (35,797)
Dividend income (5,600) (4,469) (4,724) (3,770)
Gain on valuation of derivatives (129,904) - (109,577) -
Gain on derivative transactions (155,700) (37,261) (131,337) (31,431)
Gain on foreign currency translation (180,531) (610,182) (152,283) (514,704)
Gain on valuation of financial assets at FVTPL (143,050) (242) (120,666) (204)
Gain on disposal of financial assets at FVTPL (13) - (11) -
Reversal of allowance for other doubtful accounts - (183) - (154)
Gain on disposal of property, aircraft and equipment (12,217) (9,412) (10,305) (7,939)
Reversal of impairment loss on intangible assets (2) - (2) -
Gain on disposal of intangible assets - (275) - (232)
Gain on disposal of assets held for sale (23,667) (29,617) (19,964) (24,983)
Gain on foreign currency transaction (2,367) (19) (1,997) (16)
Gain on disposal of groups constituting the
discontinued operation - (823,685) - (694,800)
Other income (7,123) (2,881) (6,009) (2,431)
2,830,281 2,499,627 2,387,413 2,108,498
(Continued)
‫ٻ‬
Translation into
2021 2020 2021 2020
Changes in assets and liabilities resulting from
operations:
Decrease (increase) in trade receivables ୸ (282,808) ୸ 39,886 $ (238,556) $ 33,645
Decrease (increase) in other receivables (36,946) 12,797 (31,165) 10,795
Decrease in accrued revenues 49,422 66,652 41,689 56,223
Decrease (increase) in amount due from
customers for contract work 14,615 (17,324) 12,328 (14,613)
Decrease (increase) in inventories (37,659) 78,738 (31,766) 66,418
Increase in advance payments (10,837) (11,403) (9,141) (9,619)
Decrease in prepaid expenses 1,759 10,214 1,484 8,616
Increase (decrease) in trade payables 52,236 (110,925) 44,062 (93,568)
Increase (decrease) in non-trade payables 14,648 (50,783) 12,356 (42,837)
Increase in long-term non-trade payables 91 - 77 -
Increase in accrued expenses 25,737 2,783 21,710 2,348
Increase (decrease) in advances 237,783 (1,012,122) 200,576 (853,751)
Increase (decrease) in amount due to customers
for contract work (23,637) 49,034 (19,938) 41,361
Decrease in plan assets 16,900 25,265 14,256 21,312
Decrease in long-term prepaid expenses 60 60 51 51
Payment of severance benefit (96,860) (111,239) (81,704) (93,833)
Succession of defined benefit obligation - 693 - 585
Decrease in provisions (65,454) (6,401) (55,212) (5,399)
Increase in deferred revenue 121,373 161,660 102,381 136,364
Others 67,330 (67,763) 56,794 (57,161)
47,753 (940,178) 40,282 (793,063)
Interest received 66,441 47,797 56,045 40,318

Dividends received 5,600 4,469 4,724 3,770
Income taxes paid (14,661) (4,992) (12,367) (4,211)
Net cash provided by operating activities 3,514,196 1,376,704 2,964,316 1,161,285
(Continued)
‫ٻ‬
Translation into
2021 2020 2021 2020
Cash flows from investing activities
Net decrease (increase) in short-term financial
instruments ୸ (2,411,840) ୸ 232,674 $ (2,034,450) $ 196,267
Decrease in lease receivables 79,755 87,487 67,275 73,798
Net increase in long-term financial instruments (11,227) (8,719) (9,470) (7,355)
Purchase of financial assets at FVTPL (1,500) (302,000) (1,265) (254,745)
Disposal of financial assets at FVTPL 2,039 - 1,720 -
Disposal of financial assets at FVTOCI 5,519 66 4,655 56
Disposal of current portion of financial assets at
FVTOCI - 3,097 - 2,612
Purchase of financial assets at amortized cost (10) 20 (8) 17
Disposal of financial assets at amortized cost 3,610 - 3,045 -
Acquisition of investments in associates - (96,340) - (81,265)
Disposal of investments in subsidiaries - - - -
Net decrease (increase) in short-term loans (1) 1 (1) 1
Net decrease in long-term loans 4 7 3 6
Acquisition of property, aircraft, equipment and
investment properties (342,965) (611,030) (289,300) (515,420)
Disposal of property, aircraft, equipment and
investment properties 38,907 39,732 32,819 33,515
Disposal of assets held for sale 32,249 61,242 27,203 51,659
Acquisition of intangible assets (5,247) (6,235) (4,426) (5,259)
Disposal of intangible assets 50 851 42 718
Increase in financial derivatives (847,955) (913,320) (715,272) (770,409)
Decrease in financial derivatives 888,235 855,416 749,249 721,566
Decrease in guarantee deposits 88,181 43,065 74,383 36,326
Increase in guarantee deposits (43,666) (30,420) (36,833) (25,660)
Increase in other assets constituting investing activities (400,000) (300,000) (337,410) (253,058)
Increase in advances constituting investing activities 474,213 - 400,011 -
Disposal of business units 6,821 941,696 5,754 794,345
Other cash flows from investing activities - (6) - (5)
Net cash used in investing activities (2,444,828) (2,716) (2,062,276) (2,290)
Cash flows from financing activities

Net increase (decrease) in short-term borrowings (215,605) 1,029,865 (181,868) 868,718
Repayment of current portion of long-term borrowings (2,623,449) (2,716,259) (2,212,947) (2,291,235)
Repayment of current portion of finance lease
obligations (1,419,966) (1,543,002) (1,197,778) (1,301,562)
Proceeds from long-term borrowings 297,419 829,726 250,881 699,895
Proceeds from debentures 1,016,423 159,362 857,379 134,426
Proceeds from ABS loans - 1,262,660 - 1,065,086
Increase in leasehold deposits received - 31 - 26
Issuance of share capital 2,553,586 1,119,304 2,154,016 944,162
Dividends paid (27) (1,205) (23) (1,016)
Issuance of hybrid securities - 299,967 - 253,030
Repayment of hybrid securities (380,000) (697,450) (320,540) (588,317)
Dividends for hybrid securities paid (18,150) (59,790) (15,310) (50,434)
Interest paid (410,992) (540,815) (346,682) (456,191)
Other cash flows from financing activities (10,457) (543) (8,822) (459)
Net cash used in financing activities (1,211,218) (858,149) (1,021,694) (723,871)
(Continued)
‫ٻ‬
Translation into
2021 2020 2021 2020
Net increase (decrease) in cash and cash equivalents ୸ (141,850) ୸ 515,839 $ (119,654) $ 435,124
Cash and cash equivalents at the beginning of year 1,314,566 816,253 1,108,871 688,531
Effects of exchange rate changes on cash and cash
equivalents 13,062 (14,673) 11,018 (12,377)
Transfer to assets held for sale (403) (2,853) (340) (2,407)
Cash and cash equivalents at the end of year ୸ 1,185,375 ୸ 1,314,566 $ 999,895 $ 1,108,871
(Concluded)
The US dollar figures are provided for information purpose only and do not form part of the consolidated financial statements.
Refer to Note 2.
The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.
Notes to the Consolidated Financial Statements
As of and for the years ended December 31, 2021 and 2020
1. GENERAL:
Korean Air Lines Co., Ltd. (the “Company” or “Parent Company”) was established on June 19, 1962, and is
engaged in the business of domestic and international airline services, manufacturing of aircraft parts and
maintenance of aircraft. The Company has been a publicly traded company upon listing its common shares
on the Korea Exchange since 1966 and its headquarters is located at Seoul, Korea.
Total share capital of the Company as of December 31, 2021, is 1,774,658 million (including 5,554
million of preferred shares), and major shareholders of the Company are Hanjin KAL Co., Ltd. (27.66%) and
its related parties (0.94%).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Consolidated Financial Statement Presentation
The Company and its subsidiaries (the “Group”) have prepared the consolidated financial statements in the
Korean language (Hangul) in accordance with Korean International Financial Reporting Standards (“K-
IFRSs”). Certain accounting principles applied by the Group that conform with financial accounting
standards and accounting principles in the Republic of Korea may not conform with generally accepted
accounting principles in other countries. Accordingly, these consolidated financial statements are intended
for use by those who are informed about Korean accounting principles and practices. The accompanying
consolidated financial statements have been condensed, restructured and translated into English from the
Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required for a fair
presentation of the Group's financial position, financial performance or cash flows, is not presented in the
accompanying consolidated financial statements.
The Group maintains its accounting records and prepares its consolidated financial statements in Korean won.
The United States dollar (“US dollar”) amounts disclosed in the accompanying consolidated financial
statements are presented solely for the convenience of the reader at the Korean won rate of 1,185.5 to the US
dollar. Such translations should not be construed as representations that the Korean won amounts represent,
or have been or could be converted into, US dollars at that or any other rate.
The Group's accounting policies applied for the accompanying consolidated financial statements are the same
as the policies applied for the preparation of consolidated financial statements as of and for the year ended
December 31, 2020, except for applying new standards and amendments.
The accompanying consolidated financial statements have been prepared on the historical cost basis, except
for certain non-current assets and financial instruments that are measured at revalued amounts or fair values,
as explained in the accounting policies below. Historical cost is generally based on the fair value of the
consideration given.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value of an asset or a
liability, the Group takes into account the characteristics of the asset or liability if market participants would
take those characteristics into account when pricing the asset or liability at the measurement date. Fair value
for measurement and/or disclosure purposes in these consolidated financial statements is determined on such
a basis, except for share-based payment transactions that are within the scope of K-IFRS 1102 Share-Based
Payment; leasing transactions that are within the scope of K-IFRS 1116, Leases; and measurements that have
some similarities to fair value but are not fair value, such as net realizable value in K-IFRS 1002 Inventories,
or value in use in K-IFRS 1036 Impairment of Assets.
2.1 Changes in Accounting Policies and Disclosures
(1) New and amended K-IFRSs and new interpretations that are effective for the current year
The Group has applied the following standards and amendments for the first time for their annual reporting
period commencing January 1, 2021.
• Amendments to K-IFRS 1116 Leases – Impact of the initial application of Corona Virus Infectious Disease-
19(“COVID-19”)-Related Rent Concessions beyond June 30, 2021
As a practical expedient, a lessee may elect not to assess whether a rent concession is a lease modification. A
lessee that makes this election shall account for any change in lease payments resulting from the rent
concession the same way it would account for the change applying this standard if the change were not a
lease modification.
The practical expedient applies only to rent concessions occurring as a direct consequence of the COVID-19
pandemic, only if all of the following conditions are met:
(a) The change in lease payments results in revised consideration for the lease that is substantially the same
as, or less than, the consideration for the lease immediately preceding the change.
(b) Any reduction in lease payments affects only payments originally due on or before June 30, 2022.
(c) There is no substantive change to other terms and conditions of the lease.
The Group has decided to apply the above practical expedients for rent recession of leased real estate and
leased vehicles, but not leased aircraft. The amount recognized in profit or loss for the reporting period
reflected the changes in lease payments that arise from rent concessions to which the lessee has applied the
practical expedient is ୸8,338 million, which are deducted from the rent fee.
- 2 -
• Phase 2 Amendments to Interest Rate Benchmark Reform - Amendments to K-IFRS 1109, K-IFRS 1039,
K-IFRS 1104, K-IFRS 1107 and K-IFRS 1116.
Adopting these amendments enables the Group to reflect the effects of transitioning from Interbank Offered
Rates (“IBOR”) to alternative benchmark interest rates (also referred to as ‘risk free rates’) without giving
rise to accounting impacts that would not provide useful information to users of consolidated financial
statements.
There is no significant impact on the financial position and/or financial performance of the Group.
(2) New and revised K-IFRSs in issue but not yet effective
At the date of authorisation of these consolidated financial statements, the Group has not applied the
following new and revised K-IFRSs that have been issued but are not yet effective
• K-IFRS 1001 Presentation of Financial Statements - Classification of Liabilities as Current or Non-

Current(Amendments)
The amendments to K-IFRS 1001 affect only the presentation of liabilities as current or non-current in the
consolidated statements of financial position and not the amount or timing of recognition of any asset,
liability, income or expenses or the information disclosed about those items.
The amendments clarify that the classification of liabilities as current or non-current is based on rights that
are in existence at the end of the reporting period; specify that classification is unaffected by expectations
about whether an entity will exercise its right to defer settlement of a liability; explain that rights are in
existence if covenants are complied with at the end of the reporting period; and introduce a definition of
‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments,
other assets or services.
The amendments are applied retrospectively for annual periods beginning on or after January 1, 2023, with
early application permitted.
• K-IFRS 1103 Business Combination - Reference to the Conceptual Framework (Amendments)
The amendments update K-IFRS 1103 so that it refers to the 2018 Conceptual Framework instead of the 2007
Framework. They also add to K-IFRS 1103 a requirement that, for obligations within the scope of K-IFRS
1037, an acquirer applies K-IFRS 1037 to determine whether at the acquisition date a present obligation
exists as a result of past events. For a levy that would be within the scope of K-IFRS 2121 Levies, the
acquirer applies K-IFRS 2121 to determine whether the obligating event that gives rise to a liability to pay
the levy has occurred by the acquisition date.
The amendments add an explicit statement that an acquirer does not recognize contingent assets acquired in a
business combination.
- 3 -
The amendments are effective for business combinations for which the date of acquisition is on or after the
beginning of the first annual period beginning on or after January 1, 2022. Early application is permitted if an
entity also applies all other updated references (published together with the updated Conceptual Framework)
at the same time or earlier.
• K-IFRS 1016 Property, Aircraft and Equipment – Proceeds before Intended Use (Amendments)
The amendments prohibit deducting from the cost of an item of property, aircraft and equipment any
proceeds from selling items produced before that asset is available for use, i.e., proceeds while bringing the
asset to the location and condition necessary for it to be capable of operating in the manner intended by
management. Consequently, an entity recognizes such sales proceeds and related costs in profit or loss. The
entity measures the cost of those items in accordance with K-IFRS 1002 Inventories.
If not presented separately in the consolidated statements of comprehensive income (loss), the consolidated
financial statements shall disclose the amounts of proceeds and cost included in profit or loss that relate to
items produced that are not an output of the entity’s ordinary activities and which line item(s) in the
consolidated statements of comprehensive income (loss) include(s) such proceeds and cost.
The amendments are applied retrospectively, but only to items of property, aircraft and equipment that are
brought to the location and condition necessary for them to be capable of operating in the manner intended by
management on or after the beginning of the earliest period presented in the consolidated financial statements
in which the entity first applies the amendments. The entity shall recognize the cumulative effect of initially
applying the amendments as an adjustment to the opening balance of retained earnings (or other component
of equity, as appropriate) at the beginning of that earliest period presented. The amendments are effective for
annual periods beginning on or after January 1, 2022, with early application permitted.
• K-IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets - Onerous Contracts - Cost of
Fulfilling a Contract (Amendments)
The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the
contract.’ Costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract
(examples would be direct labor or materials) and an allocation of other costs that relate directly to fulfilling
contracts (an example would be the allocation of the depreciation charge for an item of property, aircraft and
equipment used in fulfilling the contract).
The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at the
beginning of the annual reporting period in which the entity first applies the amendments. Comparatives are
not restated. Instead, the entity shall recognize the cumulative effect of initially applying the amendments as
an adjustment to the opening balance of retained earnings or other component of equity, as appropriate, at the
date of initial application.
The amendments are effective for annual periods beginning on or after January 1, 2022, with early
application permitted.
- 4 -
• Annual Improvements to K-IFRSs 2018 - 2020
The annual improvements include amendments to K-IFRS 1101 First-Time Adoption of K-IFRS, K-IFRS
1109 Financial Instruments, K-IFRS 1116 Leases and K-IFRS 1041 Agriculture.
(a) K-IFRS 1101 First-Time Adoption of K-IFRS (Amendment)
The amendment provides additional relief to a subsidiary which becomes a first-time adopter later than its
parent in respect of accounting for cumulative translation differences. As a result of the amendment, a
subsidiary that uses the exemption in K-IFRS 1101: D16(1) can now also elect to measure cumulative
translation differences for all foreign operations at the carrying amount that would be included in the parent’s
consolidated financial statements, based on the parent’s date of transition to K-IFRSs, if no adjustments were
made for consolidation procedures and for the effects of the business combination in which the parent
acquired the subsidiary. A similar election is available to an associate or joint venture that uses the exemption
in K-IFRS 1101: D16(1).
The amendment is effective for annual periods beginning on or after January 1, 2022, with early application
permitted.
(b) K-IFRS 1109 Financial Instruments (Amendment)
The amendment clarifies that in applying the ‘10 per cent’ test to assess whether to derecognize a financial
liability, an entity includes only fees paid or received between the entity (the borrower) and the lender,
including fees paid or received by either the entity or the lender on the other’s behalf. The amendment is
applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the
amendment. The amendment is effective for annual periods beginning on or after January 1, 2022, with early
application permitted.
(c) K-IFRS 1116 Leases (Amendment)
The amendment removes the illustration of the reimbursement of leasehold improvements. As the
amendment to K-IFRS 1116 only regards an illustrative example, no effective date is stated.
(d) K-IFRS 1041 Agriculture (Amendment)
The amendment removes the requirement in K-IFRS 1041 for entities to exclude cash flows for taxation
when measuring fair value. This aligns the fair value measurement in K-IFRS 1041 with the requirements of
K-IFRS 1113 Fair Value Measurement to use internally consistent cash flows and discount rates and enables
preparers to determine whether to use pre-tax or post-tax cash flows and discount rates for the most
appropriate fair value measurement. The amendment is effective for annual periods beginning on or after
January 1, 2022, with early application permitted.
- 5 -
• Amendments to K-IFRS 1001 Presentation of Financial Statements and IFRS Practice Statement 2 Making
Materiality Judgements - Disclosure of Accounting Policies
The amendments change the requirements in K-IFRS 1001 with regard to disclosure of accounting policies.
The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting
policy information’. Accounting policy information is material if, when considered together with other
information included in an entity’s financial statements, it can reasonably be expected to influence decisions
that the primary users of general-purpose financial statements make on the basis of those financial statements.
The supporting paragraphs in K-IFRS 1001 are also amended to clarify that accounting policy information
that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed.
Accounting policy information may be material because of the nature of the related transactions, other events
or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to
material transactions, other events or conditions is itself material.
The Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-
step materiality process’ described in IFRS Practice Statement 2.
The amendments to K-IFRS 1001 are effective for annual periods beginning on or after January 1, 2023, with
earlier application permitted and are applied prospectively. The amendments to IFRS Practice Statement 2 do
not contain an effective date or transition requirements.
• Amendments to K-IFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors -
Definition of Accounting Estimates
The amendments replace the definition of a change in accounting estimates with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that
are subject to measurement uncertainty”.
The amendments are effective for annual periods beginning on or after January 1, 2023 to changes in
accounting policies and changes in accounting estimates that occur on or after the beginning of that period,
with earlier application permitted.
• Amendments to K-IFRS 1012 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
The amendments introduce a further exception from the initial recognition exemption. Under the amendments,
an entity does not apply the initial recognition exemption for transactions that give rise to equal taxable and
deductible temporary differences.
Depending on the applicable tax law, equal taxable and deductible temporary differences may arise on initial
recognition of an asset and liability in a transaction that is not a business combination and affects neither
accounting nor taxable profit. For example, this may arise upon recognition of a lease liability and the
corresponding right-of-use asset applying K-IFRS 1116 at the commencement date of a lease.
- 6 -
Following the amendments to K-IFRS 1012, an entity is required to recognize the related deferred tax asset
and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in K-
IFRS 1012.
The amendment is effective for annual periods beginning on or after January 1, 2023, with early application
permitted.
The Group is now assessing the impact of new and amended standards on the consolidated financial
statements.
2.2 Investments in Subsidiaries, Jointly Controlled Entities and Associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an
interest in a joint venture. Significant influence is the power to participate in the financial and operating
policy decisions of the investee, but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require unanimous consent of
the parties sharing control.
The results of the profit or loss and assets and liabilities of associates or joint ventures are incorporated in
these consolidated financial statements using the equity method of accounting, except when the investment is
classified as held for sale, in which case it is accounted for in accordance with K-IFRS 1105. Under the
equity method, an investment in an associate or a joint venture is recognized initially in the consolidated
statements of financial position at cost less any impairment losses on the associate or joint venture and
adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income
(“OCI”) of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture
exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in
substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues
recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
- 7 -
An investment in an associate or a joint venture is accounted for using the equity method from the date on
which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate
or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the
identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the
carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable
assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or
loss in the period in which the investment is acquired.
The requirements of K-IFRS 1028 are applied to determine whether it is necessary to recognize any
impairment loss with respect to the Group’s investment in an associate or a joint venture. When necessary,
the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with
K-IFRS 1036 as a single asset by comparing its recoverable amount (higher of value in use and fair value less
costs of disposal) with its carrying amount. Any impairment loss recognized is not allocated to any asset,
including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment
loss is recognized in accordance with K-IFRS 1036 to the extent that the recoverable amount of the
investment subsequently increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an
associate or a joint venture. When the Group retains an interest in the former associate or a joint venture and
the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and
the fair value is regarded as its fair value on initial recognition in accordance with K-IFRS 1109. The
difference between the carrying amount of the associate or a joint venture at the date the equity method was
discontinued, and the fair value of any retained interest and any proceeds from disposing of a part of interest
in the associate or a joint venture is included in the determination of the gain or loss on disposal of the
associate or joint venture. In addition, the Group accounts for all amounts previously recognized in OCI in
relation to that associate on the same basis as would be required if that associate had directly disposed of the
related assets or liabilities.
Therefore, if a gain or loss previously recognized in OCI by that associate or joint venture would be
reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain
or loss from equity to profit or loss (as a reclassification adjustment) when the associate or joint venture is
disposed of. When the Group reduces its ownership interest in an associate or a joint venture but continues to
use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had
previously been recognized in OCI relating to that reduction in ownership interest if that gain or loss would
be reclassified to profit or loss on the disposal of the related assets or liabilities. The Group applies K-IFRS
1105 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria
to be classified as held for sale.
If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture

becomes an investment in an associate, the Group continues to apply the equity method and does not
remeasure the retained interest.
When the Group transacts with its associate or joint venture, profits and losses resulting from the transactions
with the associate or joint venture are recognized in the Group’s consolidated financial statements only to the
extent of interests in the associate or joint venture that are not related to the Group.
- 8 -
2.3 Interests in Joint Operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control.
When the Group undertakes its activities under joint operations, the Group as a joint operator recognizes in
relation to its interest in a joint operation:
x its assets, including its share of any assets held jointly;

x its liabilities, including its share of any liabilities incurred jointly;
x its revenue from the sale of its share of the output arising from the joint operation;
x its share of the revenue from the sale of the output by the joint operation; and
x its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation
in accordance with the K-IFRSs applicable to the particular assets, liabilities, revenues and expenses.
When the Group transacts with a joint operation in which the Group is a joint operator (such as a sale or
contribution of assets), the Group is considered to be conducting the transaction with other parties to the joint
operation, and gains and losses resulting from the transactions are recognized in the Group’s consolidated
financial statements only to the extent of other parties’ interests in the joint operation.
When the Group transacts with a joint operation in which the Group is a joint operator (such as a purchase of
assets), the Group does not recognize its share of the gains and losses until it resells those assets to a third
party.
2.4 Non-Current Assets Held for Sale
Non-current assets (or disposal groups) classified as held for sale are measured at the lower of the carrying
amount and fair value less costs to sell.
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be
recovered through a sale transaction rather than through continued use. This condition is regarded as met only
when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present
condition. Management must be committed to the sale which should be expected to qualify for recognition as
a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and
liabilities of that subsidiary are classified as held for sale when the criteria described above are met,
regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.
When the Group is committed to a sale plan involving disposal of an investment in an associate or joint
venture or, a portion of an investment in an associate or joint venture, the investment, or the portion of the
investment in the associate that or joint venture will be disposed of, is classified as held for sale when the
criteria described above are met, and the Group ceases to apply the equity method in relation to the portion
that is classified as held for sale. Any retained portion of an investment in an associate that has not been
classified as held for sale continues to be accounted for using the equity method.
- 9 -
2.5 Revenue Recognition
Revenue is measured based on the consideration set by the contract with the customer, and is recognized by
applying the revenue recognition when 1) identifying the contract(s) with a customer, 2) identifying the
performance obligations in the contract, 3) determining the transaction price, 4) allocating the transaction
price to the performance obligations in the contract and 5) recognizing revenue when (or as) the entity
satisfies a performance obligation (or as the obligation is performed over the period of time). It excludes
amounts collected on behalf of third parties. The Group recognizes revenue when it transfers control of a
product or service to a customer.
1) Sales of goods and rendering of services
Revenue from the sale of goods is recognized when the Group has transferred to the buyer the significant
risks and rewards of ownership of the goods. Variable consideration is included in the transaction price only
to the extent it is probable or highly probable that a significant reversal in the cumulative amount of revenue
recognized will not occur in future periods.
2) Royalty revenue
Royalty revenue is recognized on an accrual basis that reflects the economic realities of the related contracts.
3) Customer royalty program
The Group operates customer royalty program to provide customers with incentives to buy their goods or
services. If a customer buys goods or services, the Group grants the customer award credits.
These points provide a discount to customers that they would not receive without purchasing the goods or
services (i.e., a material right). The promise to provide the discount to the customer is, therefore, a separate
performance obligation.
The transaction price is allocated between the product, the service and the points on a relative stand-alone
selling price basis. The stand-alone selling price per point is estimated based on the discount to be given
when the points are redeemed by the customer and the likelihood of redemption, as evidenced by the Group’s
historical experience. A contract liability is recognized for revenue relating to the loyalty points at the time of
the initial sales transaction. Revenue from the loyalty points is recognized when the points are redeemed by
the customer.
2.6 Leases
2.6.1 The Group as Lessor
When the Group is a lessor, leases are classified as either finance leases or operating leases and accounts for
them differently. Rental income from operating leases is recognized on a straight-line basis over the term of
the relevant lease. For an intermediate lessor, head leases and subleases are accounted for as two separate
contracts and classify subleases as finance leases or operating leases in accordance with lease assets arising
from head leases.
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2.6.2 The Group as Lessee
The Group leases aircraft, offices, land, warehouses and cars, etc. Lease contracts are typically made for
fixed periods of 1 year to 43 years, but may have extension options.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the
contract to the lease and non-lease components based on their relative stand-alone prices.
However, when it is difficult to separate lease and non-lease components, the Group applies the practical
expedient, which accounts for these as a single lease component.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
x Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
x Variable lease payments that are depend on an index or a rate, initially measured using the index or rate
as of the commencement date;
x The amounts expected to be payable by the lessee under residual value guarantees;
x The exercise price of a purchase option if the lessee is reasonably certain to exercise that options; and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
Lease liability measurements also include payments to be made in option periods if the lessee is reasonably
certain to exercise an option to extend the lease.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being
the rate of interest that the lessee would have to pay to borrow over a similar term, and with a similar security,
the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment.
To determine the incremental borrowing rate, the Group:
x where possible, uses recent third-party financing received by the individual lessee as a starting point,
adjusted to reflect changes in financing conditions since third-party financing was received;
x uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases,
which do not have recent third-party financing; and
x makes adjustments specific to the lease, for example, country and security.
The Group is exposed to potential future increases in variable lease payments based on an index or rate,
which are not included in the lease liability until they take effect. When adjustments to lease payments based
on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or
loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
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Right-of-use assets are measured at cost comprising the following:
x The amount of the initial measurement of lease liability;

x Any lease payments made at or before the commencement date, less any lease incentives received;
x Any initial direct costs; and
x Estimated restoration costs.
The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. If the Group is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over the underlying asset’s useful life. Although the Group
elected to apply the revaluation model to its land that is presented in property, aircraft and equipment, the
Group elected not to apply that revaluation model to buildings held by the Group that are presented in the
right-of-use assets.
Payments associated with short-term leases of equipment and vehicles and leases of low-value assets are
recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease
term of 12 months or less. Low-value lease assets comprise IT equipment and low-value office supplies, etc.
2.7 Foreign Currencies
The consolidated financial statements of the Group are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated
financial statements, the results of operations and financial position of the Group entity are expressed in
Korean won, which is the functional currency of the entity and the presentation currency for the consolidated
financial statements.
In preparing the consolidated financial statements of the Group, transactions in currencies other than the
Group’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the
dates of the transactions. At the end of each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that
are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value
was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
not retranslated.
Exchange differences of monetary items are recognized in profit or loss in the period in which they arise,
except for:
x Exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets when they are regarded as an adjustment
to interest costs on those foreign currency borrowings;
x Exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
x Exchange differences on monetary items receivable from or payable to a foreign operation for which
settlement is neither planned nor likely to occur (therefore, forming part of the net investment in the
foreign operation), which are recognized initially in OCI and reclassified from equity to profit or loss
on disposal or partial disposal of the net investment.
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For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations are expressed in Korean won using exchange rates prevailing at the end of the reporting
period. Income and expense items are translated at the average exchange rates for the period, unless exchange
rates fluctuated significantly during that period, in which case the exchange rates at the dates of the
transactions are used. Exchange differences arising, if any, are recognized in OCI and accumulated in equity.
On the disposal of a foreign operation (i.e., a disposal of the Group’s entire interest in a foreign operation, or
a disposal involving loss of control over a subsidiary that includes a foreign operation or partial disposal of an
interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest
becomes a financial asset), all of the accumulated exchange differences in respect of that operation
attributable to the owners of the Group are reclassified to profit or loss. Any exchange differences that have
previously been attributed to the Group are derecognized, but they are not reclassified to profit or loss.
In the case of a partial disposal (i.e., no loss of control) of a subsidiary that includes a foreign operation, the
proportionate share of accumulated exchange differences is reattributed to non-controlling interests in equity
and is not recognized in profit or loss. For all other partial disposals (i.e., partial disposals of associates or
joint arrangements that do not result in the Group losing significant influence or joint control), the
proportionate share of the accumulated exchange differences is reclassified to profit or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and
liabilities of the foreign operation and translated at the closing rate. Exchange differences arising are
recognized in OCI.
2.8 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or
sale. The qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale.
To the extent that variable-rate borrowings are used to finance a qualifying asset and are hedged in an
effective cash flow hedge of interest rate risk, the effective portion of the derivative is recognized in OCI and
reclassified to profit or loss when the qualifying asset impacts profit or loss. To the extent that fixed-rate
borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest
rate risk, the capitalized borrowing costs reflect the hedged interest rate.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
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2.9 Government Grants
Government grants are not recognized until there is a reasonable assurance that the Group will comply with
the conditions attaching to them and that the grants will be received.
The benefit of a government loan at a below-market rate of interest is treated as a government grant,
measured as the difference between proceeds received and the fair value of the loan based on prevailing
market interest rates.
Government grants related to assets are presented in the consolidated statements of financial position by
deducting the grant from the carrying amount of the asset. The related grant is recognized in profit or loss
over the life of a depreciable asset as a reduced depreciation expense.
Government grants related to income are recognized in profit or loss on a systematic basis over the periods in
which the Group recognizes as expenses the related costs for which the grants are intended to compensate.
Government grants that become receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the entity with no future related costs shall be recognized in
profit or loss of the period in which it becomes receivable.
Government grants toward staff retraining costs are recognized as income over the periods necessary to
match them with the related costs and are deducted in reporting the related expense.
Government grants related to the acquisition of property, aircraft and equipment are treated as deferred
income and released to profit or loss over the expected useful lives of the assets concerned.
2.10 Employee Benefits
1) Short-term employee benefits
Short-term employee benefits payable within 12 months after the end of the reporting period in which the
employees provided the related services are recognized in profit or loss when the service is rendered in
exchange for the estimated future payments. Short-term employee benefits are measured at undiscounted
amounts.
2) Other long-term employee benefits
Other long-term employee benefits that are not to be paid within 12 months after the end of the reporting
period in which the employees provided the related services are discounted to their present value based on the
future benefits received in exchange for services rendered during the current and prior periods. Changes in
remeasurement are recognized in profit or loss in the period in which they arise.
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3) Retirement benefit
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected
unit credit method, with actuarial valuations being carried out at the end of each reporting period.
Remeasurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding interest), are recognized immediately in the consolidated
statements of financial position with a charge or credit to the statements of comprehensive income (loss) in
the period in which they occur. Remeasurements recognized in the consolidated statements of comprehensive
income (loss) are recognized immediately in retained earnings and will not be reclassified to profit or loss.
Past service cost is recognized in profit or loss when the plan amendment or curtailment occurs, or when the
Group recognizes related restructuring costs or termination benefits, if earlier. Gains or losses on settlement
of a defined benefit plan are recognized when the settlement occurs.
Net interest is calculated by applying the discount rate at the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs are composed of service cost (including current service cost
and past service cost, as well as gains and losses on curtailments and settlements), net interest expense
(income) and remeasurement.
Service cost is recognized within cost of sales and selling and administrative expenses. Net interest expense
or income is recognized within financial costs, and the remeasurement component is recognized in OCI.
Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognized in the consolidated statements of financial position represents
the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation
is limited to the present value of any economic benefits available in the form of refunds from the plans or
reductions in future contributions to the plans.
A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw the
offer of the termination benefit and when the entity recognizes any related restructuring costs including the
payment of termination benefits.
2.11 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
1) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the consolidated statements of comprehensive income (loss) because of items of income or expense that
are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability
for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period.
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2) Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of
assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the liability method. Deferred tax liabilities are
generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for
all deductible temporary differences to the extent it is probable that taxable profits will be available against
which those deductible temporary differences can be utilized.
The deferred tax assets are not recognized if the deductible temporary differences arise from the initial
recognition of an asset or liability in a transaction that is not a business combination and at the time of the
transaction, affects neither accounting profit nor taxable profit (tax loss). Deferred tax liabilities are
recognized for taxable temporary differences associated with investments in subsidiaries and associates and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference
and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only
recognized to the extent it is probable that there will be sufficient taxable profits against which the benefits of
the temporary differences can be utilized and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets
to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if, and only if, the Group has a legally enforceable right to offset
current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities,
which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle
the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or
assets are expected to be settled or recovered.
For the purpose of measuring deferred tax liabilities and deferred tax assets for investment properties that are
measured using the fair value model, the carrying amounts of such properties are presumed to be recovered
entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment
property is depreciable and is held within a business model whose objective is to consume substantially all of
the economic benefits embodied in the investment properties over time, rather than through sale.
3) Current and deferred taxes for the year
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are
recognized,‫ٻ‬in the same or a different period, in OCI or directly in equity, in which case, the current and
deferred taxes are also recognized in OCI or directly in equity, respectively. Where current tax or deferred tax
arises from the initial accounting for a business combination, the tax effect is included in the accounting for
the business combination.
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2.12 Property, Aircraft and Equipment
Property, aircraft and equipment, except land, are stated at cost less subsequent accumulated depreciation and
accumulated impairment losses. Land shall be carried at a revalued amount, that is, its fair value at the date of
the revaluation less any subsequent accumulated impairment losses. Revaluation shall be made with
sufficient regularity to ensure that the carrying amount does not differ materially from that which would be
determined using fair value at the end of the reporting period.
The cost of an item of property, aircraft and equipment is directly attributable to their purchase or
construction, which includes any costs directly attributable to bringing the asset to the location and the
condition necessary for it to be capable of operating in the manner intended by management. It also includes
the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is
located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset if it is probable that
future economic benefits associated with the assets will flow into the Group and the cost of an asset can be
measured reliably. The carrying amount of the replaced part is derecognized. Routine maintenance and
repairs are expensed as incurred.
The Group does not depreciate land and leased land. Depreciation expense is computed using the straight-line
method based on the estimated useful lives of the assets as follows:
Category Useful lives (years)
Buildings and structures 40

Machinery 8 – 20
Aircraft 6 – 20
Aircraft and leased aircraft
Overhaul 2.8 – 12
Engines 20
Engines and leased engines
Overhaul 3.3 – 10.7
Repairable and Rotable parts 15
Vehicles 6
Other assets and other leased assets 6
Leasehold improvements 1 – 11
If each part of an item of property, aircraft and equipment has a cost that is significant in relation to the total
cost of the item, it is depreciated separately.
The Group reviews the depreciation method, the estimated useful lives, and residual values of property,
aircraft and equipment at the end of each annual reporting period. If expectations differ from previous
estimates, the changes are accounted for as a change in an accounting estimate.
An item of property, aircraft and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of
the property (calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is included in profit or loss in the period in which the property is derecognized. The revaluation surplus
included in equity with respect to an item of property, aircraft and equipment may be transferred directly to
retained earnings when the asset is derecognized.
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2.13 Investment Properties
Investment properties are properties held to earn rentals or for capital appreciation (including property under
construction for such purposes). Investment properties are measured initially at cost, including transaction
costs.
Subsequent to initial recognition, investment properties are reported at cost less accumulated depreciation and
accumulated impairment losses. Subsequent costs are recognized at the carrying amount of an asset or as a
separate asset if it is probable that future economic benefits associated with the assets will flow into the
Group and the cost of the asset can be measured reliably. And the carrying amount of the replaced part is
derecognized. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, all other investment property is depreciated based on the respective assets
estimated useful lives of 40 years using the straight-line method.
The Group reviews the depreciation method, the estimated useful lives and residual values of investment
property at the end of each annual reporting period. If expectations differ from previous estimates, the
changes are accounted for as a change in an accounting estimate.
An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising
on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
2.14 Intangible Assets
1) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over
their estimated useful lives.
The Group reviews the depreciation method, the estimated useful lives and residual values of intangible
assets at the end of each annual reporting period. If expectations differ from previous estimates, the changes
are accounted for as a change in an accounting estimate. Intangible assets with indefinite useful lives that are
acquired separately are carried at cost less accumulated impairment losses.
2) Internally generated intangible assets — research and development expenditure
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
Expenditure arising from development (or from the development phase of an internal project) is recognized
as an intangible asset if, and only if, the development project is designed to produce new or substantially
improved products, and the Group can demonstrate the technical and economic feasibility and measure
reliably the resources attributable to the intangible asset during its development.
The amount initially recognized for internally generated intangible assets is the sum of the expenditure
incurred from the date when the intangible asset first meets the recognition criteria. Where no internally
generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the
period in which it is incurred.
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Subsequent to initial recognition, internally generated intangible assets are reported at cost, less accumulated
amortization and accumulated impairment losses.
3) Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognized separately from goodwill are initially
recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial
recognition, intangible assets acquired in a business combination are reported at cost, less accumulated
amortization and accumulated impairment losses.
4) Derecognition of intangible assets
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its
use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when
the asset is derecognized.
Intangible assets with definite useful lives are amortized based on the estimated useful lives of the assets as
follows:
Category Useful lives

Facility usage rights 19 – 30 years
Software 3.9 – 20 years
Among the Group’s intangible assets, useful life of a membership is estimated to be indefinite since the
usable period is not limited in accordance with the terms of the contract and the economic benefits are
expected to be continuously generated from the asset during the holding period.
5) Patents and trademarks
Patents and trademarks are measured initially at purchase cost and are amortized on a straight-line basis over
their estimated useful lives.
2.15 Impairment of Tangible and Intangible Assets other than Goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). The Group estimates the recoverable amount of an individual asset. When it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of
allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and
consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the asset may be impaired.
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Recoverable amount is the higher of fair value less costs to sell or value in use. If the recoverable amount of
an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (or the cash-generating unit) is reduced to its recoverable amount and the reduced amount is
recognized in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognized for
the asset (or the cash-generating unit) in prior years. A reversal of an impairment loss is recognized
immediately in profit or loss.
2.16 Inventories
Inventories are stated at the lower of cost or net realizable value. The cost of inventories is measured by the
following evaluation methods:
Inventories Evaluation method
Merchandise First-in, first-out

Work in process Specific identification
Raw materials Moving average
Supplies Moving average
Materials in transit Specific identification
Cost of inventories consists of the purchase price, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Net realizable value represents the estimated selling price
for inventories less all estimated costs of completion and costs necessary to make the sale.
When inventories are sold, the carrying amount of those inventories is recognized as an expense (cost of
sales) in the period in which the related revenue is recognized. The amount of any write-down of inventories
to net realizable value and all losses of inventories are recognized as an expense in the period the write-down
or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net
realizable value, is recognized as a reduction in the amount of inventories recognized as an expense in the
period in which the reversal occurs.
2.17 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (where the effect of the time value of money is
material). The discount rate used is a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. Where discounting is used, the increase in the provision due to
the passage is recognized in profit or loss as financial cost.
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When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
At the end of each reporting period, the remaining provision balance is reviewed and assessed to determine if
the current best estimate is being recognized. If the existence of an obligation to transfer economic benefit is
no longer probable, the related provision is reversed during that period.
2.18 Financial Assets
All regular-way purchases or sales of financial assets are recognized and derecognized on a trade-date basis.
Regular-way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace.
All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair
value, depending on the classification of the financial assets.
1) Classification and measurement of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortized cost:
x The financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows.
x The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through other
comprehensive income (“FVTOCI”):
x The financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets.
x The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
By default, all other financial assets are measured subsequently at fair value through profit or loss (“FVTPL”).
Despite the foregoing, the Group may make the following irrevocable election / designation at initial
recognition of a financial asset:
x The Group may irrevocably elect to present subsequent changes in fair value of an equity investment in
OCI if certain criteria are met (see Note 2.18 1) C. below).
x The Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI
criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
(see Note 2.18 1) D. below).
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A. Amortized cost and effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and
allocating interest income over the relevant period. For financial assets other than purchased or originated
credit-impaired financial assets (i.e., assets that are credit impaired on initial recognition), the effective
interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid
or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) excluding expected credit losses (“ECLs”), through the expected life of the debt instrument, or,
where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition.
For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is
calculated by discounting the estimated future cash flows, including ECLs, to the amortized cost of the debt
instrument on initial recognition.
The amortized cost of a financial asset is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus the cumulative amortization using the effective interest
method of any difference between that initial amount and the maturity amount, adjusted for any loss
allowance. The gross carrying amount of a financial asset is the amortized cost of a financial asset before
adjusting for any loss allowance.
Interest income is recognized using the effective interest method for debt instruments measured subsequently
at amortized cost and at FVTOCI. For financial assets other than purchased or originated credit-impaired
financial assets, interest income is calculated by applying the effective interest rate to the gross carrying
amount of a financial asset, except for financial assets that have subsequently become credit impaired. For
financial assets that have subsequently become credit impaired, interest income is recognized by applying the
effective interest rate to the amortized cost of the financial asset. If, in subsequent reporting periods, the
credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit
impaired, interest income is recognized by applying the effective interest rate to the gross carrying amount of
the financial asset.
For purchased or originated credit-impaired financial assets, the Group recognizes interest income by
applying the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial
recognition. The calculation does not revert to the gross basis even if the credit risk of the financial asset
subsequently improves so that the financial asset is no longer credit-impaired.
Interest income is recognized in profit or loss and is included in the ‘financial income’ line item in profit or
loss.
B. Debt instruments classified as at FVTOCI
Fair value is determined in the manner described in Note 40. The debt instruments are initially measured at
fair value plus transaction costs. Subsequently, changes in the carrying amount of these debt instruments as a
result of foreign exchange gains and losses, impairment gains or losses, and interest income calculated using
the effective interest method are recognized in profit or loss. The amounts that are recognized in profit or loss
are the same as the amounts that would have been recognized in profit or loss if these debt instruments had
been measured at amortized cost. All other changes in the carrying amount of these debt instruments are
recognized in OCI and accumulated under the heading of investments’ revaluation reserve. When these debt
instruments are derecognized, the cumulative gains or losses previously recognized in OCI are reclassified to
profit or loss.
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C. Equity instruments designated as at FVTOCI
On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to
designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the
equity investment is held for trading or if it is a contingent consideration recognized by an acquirer in a
business combination.
A financial asset is held for trading if:
x It has been acquired principally for the purpose of selling in the near term; or
x On initial recognition, it is part of a portfolio of identified financial instruments that the Group manages
together and has evidence of a recent actual pattern of short-term profit taking; or
x It is a derivative (except for a derivative that is a financial guarantee contract or a designated and
effective hedging instrument).
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognized in OCI and accumulated in the investments’ revaluation reserve. The cumulative gain or loss is
not to be reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to
retained earnings.
Dividends on these investments in equity instruments are recognized in profit or loss in accordance with K-
IFRS 1109, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends
are included in the ‘financial income’ line item.
D. Financial assets at FVTPL
Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI are measured
at FVTPL. Specifically:
x Investments in equity instruments are classified as at FVTPL, unless the Group designates an equity
investment that is neither held for trading nor a contingent consideration arising from a business
combination as at FVTOCI on initial recognition (see Note 2.18 1) C. above).
x Debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria (see Note 2.18 1) A.
and B. above) are classified as at FVTPL. In addition, debt instruments that meet either the amortized
cost criteria or the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such
designation eliminates or significantly reduces a measurement or recognition inconsistency (so called
‘accounting mismatch’) that would arise from measuring assets or liabilities or recognizing the gains
and losses on them on different bases.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value
gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship.
The net gain or loss recognized in profit or loss includes any financial income on the financial asset and is
included in the ‘other non-operating income and expenses’ line item. Interest income generated from
financial assets at FVTPL is included in the ‘financial income-other’ line item.
- 23 -
2) Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign currency is determined in that
foreign currency and translated at the spot rate at the end of each reporting period. Specifically:
x For financial assets measured at amortized cost that are not part of a designated hedging relationship,
exchange differences are recognized in profit or loss in the ‘other non-operating income and expenses’
line item;
x For debt instruments measured at FVTOCI that are not part of a designated hedging relationship,
exchange differences on the amortized cost of the debt instrument are recognized in profit or loss in the
‘other non-operating income and expenses’ line item. Other exchange differences are recognized in OCI
in the investments’ revaluation reserve;
x For financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange
differences are recognized in profit or loss in the ‘other non-operating income and expenses’ line item;
and
x For equity instruments measured at FVTOCI, exchange differences are recognized in OCI in the
investments’ revaluation reserve.
3) Impairment of financial assets
The Group recognizes a loss allowance for ECLs on investments in debt instruments that are measured at
amortized cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial
guarantee contracts. The amount of ECLs is updated at each reporting date to reflect changes in credit risk
since initial recognition of the respective financial instrument.
The Group recognizes lifetime ECL for trade receivables, contract assets and lease receivables. The ECLs on
these financial assets are estimated using a provision matrix based on the Group’s historical credit loss
experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as the forecast directions of conditions at the reporting date, including
time value of money where appropriate.
For all other financial instruments, the Group recognizes lifetime ECL when there has been a significant
increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not
increased significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the ECLs that will result from all possible default events over the expected life of a
financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to
result from default events on a financial instrument that are possible within 12 months after the reporting date.
- 24 -
A. Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial
recognition, the Group compares the risk of a default occurring on the financial instrument at the reporting
date with the risk of a default occurring on the financial instrument at the date of initial recognition. In
making this assessment, the Group considers both quantitative and qualitative information that is reasonable
and supportable, including historical experience and forward-looking information that is available without
undue cost or effort. Forward-looking information considered includes the future prospects of the industries
in which the Group’s debtors operate, obtained from economic expert reports, financial analysts,
governmental bodies, relevant think-tanks and other similar organizations, as well as consideration of various
external sources of actual and forecast economic information that relates to the Group’s core operations.
In particular, the following information is taken into account when assessing whether credit risk has increased
significantly since initial recognition:
x An actual or expected significant deterioration in the financial instrument’s external (if available) or
internal credit rating;
x Significant deterioration in external market indicators of credit risk for a particular financial instrument,
e.g., a significant increase in the credit spread, the credit default swap prices for the debtor or the length
of time or the extent to which the fair value of a financial asset has been less than its amortized cost;
x An actual or expected significant deterioration in the operating results of the debtor;
x Significant increases in credit risk on other financial instruments of the same debtor; and
x An actual or expected significant adverse change in the regulatory, economic or technological
environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt
obligations.
Irrespective of the outcome of the above assessment, the Group presumes that the credit risk on a financial
asset has increased significantly since initial recognition when contractual payments are more than 30 days
past due, unless the Group has reasonable and supportable information that demonstrates otherwise.
Despite the foregoing, the Group assumes that the credit risk on a financial instrument has not increased
significantly since initial recognition if the financial instrument is determined to have low credit risk at the
reporting date. A financial instrument is determined to have low credit risk if:
(1) The financial instrument has a low risk of default;

(2) The debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and
(3) Adverse changes in economic and business conditions in the longer term may, but will not necessarily,
reduce the ability of the borrower to fulfil its contractual cash flow obligations.
The Group considers a financial asset to have low credit risk when the asset has external credit rating of
‘investment grade’ in accordance with the globally understood definition, or if an external rating is not
available, the asset has an internal rating of ‘performing.’ Performing means that the counterparty has a
strong financial position and there are no past due amounts.
For financial guarantee contracts, the date that the Group becomes a party to the irrevocable commitment is
considered to be the date of initial recognition for the purposes of assessing the financial instrument for
impairment. In assessing whether there has been a significant increase in the credit risk since initial
recognition of a financial guarantee contract, the Group considers the changes in the risk that the specified
debtor will default on the contract.
- 25 -
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a
significant increase in credit risk and revises them, as appropriate, to ensure that the criteria are capable of
identifying significant increase in credit risk before the amount becomes past due.
B. Definition of default
The Group considers the following as constituting an event of default for internal credit risk management
purposes as historical experience indicates that financial assets that meet the following criterion are generally
not recoverable:
x When there is a breach of financial covenants by the debtor.
Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is
more than 90 days past due unless the Group has a reasonable and supportable information to demonstrate
that a more lagging default criterion is more appropriate.
C. Credit-impaired financial assets
A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit impaired
includes observable data about the following events:
x Significant financial difficulty of the issuer or the borrower;

x A breach of contract, such as a default or past due event (see Note 2.18 3) B. above);
x The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial
difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise
consider;
x It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or
x The disappearance of an active market for that financial asset because of financial difficulties.
D. Write-off policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under
liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts
are more than three years past due, whichever occurs sooner. Financial assets written off may still be subject
to enforcement activities under the Group’s recovery procedures, taking into account legal advice, where
appropriate. Any recoveries made are recognized in profit or loss.
- 26 -
E. Measurement and recognition of ECLs.
The measurement of ECLs is a function of the probability of default, loss-given default (i.e., the magnitude of
the loss if there is a default) and the exposure at default. The assessment of the probability of default and
loss-given default is based on historical data adjusted by forward-looking information as described above. As
for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the
reporting date; for financial guarantee contracts, the exposure includes the amount of guaranteed debt that has
been drawn down as at the reporting date, together with any additional guaranteed amounts expected to be
drawn down by the borrower in the future by default date determined based on historical trend, the Group’s
understanding of the specific future financing needs of the debtors, and other relevant forward-looking
information.
For financial assets, the ECL is estimated as the difference between all contractual cash flows that are due to
the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted
at the original effective interest rate. For a lease receivable, the cash flows used for determining the ECLs are
consistent with the cash flows used in measuring the lease receivable in accordance with K-IFRS 1116.
For a financial guarantee contract, as the Group is required to make payments only in the event of a default
by the debtor in accordance with the terms of the instrument that is guaranteed, the ECL is the expected
payments to reimburse the holder for a credit loss that it incurs less any amounts that the Group expects to
receive from the holder, the debtor or any other party.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in
the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL
are no longer met, the Group measures the loss allowance at an amount equal to 12-month ECL at the current
reporting date, except for assets for which simplified approach was used.
The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account, except for investments
in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in OCI and
accumulated in the investments’ revaluation reserve, and does not reduce the carrying amount of the financial
asset in the consolidated statements of financial position.
4) Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset
expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset
and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and
also recognizes a collateralized borrowing for the proceeds received.
On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognized in profit or loss. In addition,
on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss
previously accumulated in the investments’ revaluation reserve is reclassified to profit or loss. In contrast, on
derecognition of an investment in equity instrument that the Group has elected on initial recognition to
measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments’ revaluation
reserve is not reclassified to profit or loss, but is transferred to retained earnings.
- 27 -
2.19 Financial Liabilities and Equity Instruments
1) Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangement and the definitions of a financial liability and an equity instrument.
Furthermore, the Group does not reassess such classification subsequent to the initial recognition unless the
terms of the instrument changes.
2) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds are received, net of
direct issue costs.
Repurchase of the Group’s own equity instruments is recognized and deducted directly in equity. No gain or
loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity
instruments.
3) Financial liabilities
All financial liabilities are measured subsequently at amortized cost using the effective interest method or at
FVTPL. However, financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition, or when the continuing involvement approach applies and financial guarantee contracts are
issued by the Group, are measured in accordance with the specific accounting policies set out below.
4) Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when a financial liability is (i) contingent consideration of an
acquirer in a business combination, (ii) held for trading or (iii) designated as at FVTPL.
A financial liability is classified as held for trading if:
x it has been acquired principally for the purpose of repurchasing in the near term;
x on initial recognition, it is part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit taking; or
x it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading or contingent consideration of an acquirer
in a business combination may be designated as at FVTPL upon initial recognition if either:
x such designation eliminates or significantly reduces a measurement or recognition inconsistency that

would otherwise arise;
x the financial liability forms part of a group of financial assets or financial liabilities or both, which is
managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is provided
internally on that basis; or
x it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1109 permits the
entire combined contract to be designated as at FVTPL.
- 28 -
Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair
value recognized in profit or loss to the extent that they are not part of a designated hedging relationship. The
net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability and is
included in the ‘gain (loss) on financial liabilities at FVTPL’ line item in financial income and costs.
However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of
the financial liability that is attributable to changes in the credit risk of that liability is recognized in OCI,
unless the recognition of the effects of changes in the liability’s credit risk in OCI would create or enlarge an
accounting mismatch in profit or loss. The remaining amount of change in the fair value of liability is
recognized in profit or loss. Changes in fair value attributable to a financial liability’s credit risk that is
recognized in OCI are not subsequently reclassified to profit or loss; instead, they are transferred to retained
earnings upon derecognition of the financial liability.
Gains or losses on financial guarantee contracts issued by the Group that are designated by the Group as at
FVTPL are recognized in profit or loss.
5) Financial liabilities measured subsequently at amortized cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held
for- trading or (iii) designated as at FVTPL, are measured subsequently at amortized cost using the effective
interest method.
The effective interest method is a method of calculating the amortized cost of a financial liability and
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees and points paid or received that form an integral
part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life
of the financial liability, or, where appropriate a shorter period, to the amortized cost of the financial liability.
6) Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with
the terms of a debt instrument.
Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at
FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of:
x the amount of the loss allowance determined in accordance with K-IFRS 1109 (see financial assets
above); and
x the amount recognized initially less, where appropriate, cumulative amortization recognized in
accordance with the revenue recognition policies set out above.
- 29 -
7) Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the
end of each reporting period, the foreign exchange gains and losses are determined based on the amortized
cost of the instruments. These foreign exchange gains and losses are recognized in the ‘other non-operating
income and expenses’ line item in profit or loss for financial liabilities that are not part of a designated
hedging relationship. For those which are designated as a hedging instrument for a hedge of foreign currency
risk, foreign exchange gains and losses are recognized in OCI and accumulated in a separate component of
equity.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as
at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognized in
profit or loss for financial liabilities that are not part of a designated hedging relationship.
8) Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged,
canceled or have expired. The difference between the carrying amount of the financial liability derecognized
and the consideration paid and payable is recognized in profit or loss.
When the Group exchanges with the existing lender one debt instrument for another one with substantially
different terms, such exchange is accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of
an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a
new liability. It is assumed that the terms are substantially different if the discounted present value of the cash
flows under the new terms, including any fees paid net of any fees received and discounted using the original
effective rate, is at least 10% different from the discounted present value of the remaining cash flows of the
original financial liability. If the modification is not substantial, the difference between (1) the carrying
amount of the liability before the modification and (2) the present value of the cash flows after modification
should be recognized in profit or loss as the modification gain or loss in the ‘financial income and costs’.
2.20 Derivative Financial Instruments
The Group enters into various derivative financial instruments to manage its exposure to interest rate, oil
price risk and foreign exchange rate risks, including oil price option, interest rate swaps and cross-currency
interest rate swaps.
Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in
profit or loss immediately unless the derivative is designated and effective as a hedging instrument. When the
derivative is designated and effective as a hedging instrument, the timing of the recognition in profit or loss
depends on the nature of the hedging relationship.
- 30 -
A derivative with a positive fair value is recognized as a financial asset, whereas a derivative with a negative
fair value is recognized as a financial liability. Derivatives are not offset in the consolidated financial
statements, unless the Group has both legally enforceable right and intention to offset. The impact of the
master netting agreements on the Group’s financial position is disclosed in Note 40. A derivative is presented
as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12
months and it is not due to be realized or settled within 12 months. Other derivatives are presented as current
assets or current liabilities.
2.21 Accounting for Allocation and Trading System of Greenhouse Gas Emission Permits
Emissions obligations that may occur with enforcement of The Act on the Allocation and Trading of
Greenhouse Gas Emission Permits are recognized when there is a high possibility that resources will be
leaked in order to fulfill the obligation, and the amount required to fulfill the obligation can be reliably
estimated. Emissions obligations are recognized by estimating expenditures required to settle the obligation
for any emissions exceeding the emission permits quantities owned by the Group for the applicable year. The
Group derecognized emission obligations when the allocated allowances are submitted to the government.
2.22 Reclassification
For the purpose of improving the comparability of reporting, certain reclassifications have been made in the
prior year’s consolidated financial statements to conform to the classifications used in the current year. These
reclassifications affect neither earnings per share nor net asset value of prior year.
2.23 Approval of Consolidated Financial Statements
The accompanying consolidated financial statements were approved by the board of directors on February 22,
2022, and are subject to change with the approval of shareholders at their annual general meeting on March
23, 2022.
3. CRITICAL ACCOUNTING ESTIMATES:
In the application of the Group’s accounting policies, which are described in Note 2, management is required
to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily identifiable from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period of the revision if the revision affects that period only or in the period of
the revision and future periods if the revision affects both the current and future periods.
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
- 31 -
1) Impact on mileage revenue accounting
The Group has treated mileage provided to its customers as a transaction that contains complex components,
and has proportionately allocated the fair value of consideration received or receivable between values of
services provided and the values of the mileage. The consideration allocated to the values of mileage is
calculated based on the likelihood of mileage options to be exercised by customers and estimated values
recognized using ‘Adjusted market assessment approach.’
2) Calculation of loss allowance
When measuring ECL, the Group uses reasonable and supportable forward-looking information, which is
based on assumptions for the future movement of different economic drivers and how these drivers will
affect each other.
Loss-given default is an estimate of the loss arising on default. It is based on the difference between the
contractual cash flows due and those that the lender would expect to receive, taking into account cash flows
from collateral and integral credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the
likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions
and expectations of future conditions.
3) Defined benefit plan
The Group’s defined benefit obligation is determined based on the actuarial valuation carried out at the end
of each annual reporting period. Actuarial assumptions are the Group’s best estimates of the variables in
determining the cost of providing postretirement benefits, such as discount rates, rates of expected future
salary increases and mortality rates. Significant estimation uncertainty is likely to persist in making such
assumptions due to the long-term nature of postretirement benefit plan. As of December 31, 2021, details of
defined benefit liabilities are disclosed in Note 23 to the consolidated financial statements.
4) Valuation of financial instruments
As described in Note 40, the Group uses valuation techniques that include inputs that are not based on
observable market data to estimate the fair value of certain type of financial instruments. Note 40 provides
detailed information about key assumptions used in the determination of the fair value of financial
instruments, as well as the detailed sensitivity analysis for these assumptions. The directors believe that the
chosen valuation techniques and assumptions used are appropriate in determining the fair value of financial
instruments.
5) Income taxes
In consideration of operating performance of the Group and estimation of the future operating performance,
the Group recognizes deferred tax asset in relation to unused tax loss carryforward and tax credits. The
Group’s taxable income generated from these operations is subject to income taxes based on tax laws and
interpretations of tax authorities in numerous jurisdictions. There are many transactions and calculations for
which the ultimate tax determination is uncertain (see Note 37).
- 32 -
The Group is liable to pay additional income tax calculated based on the tax laws if a certain event occurs. As
the measurement of current and deferred income tax is affected by the tax effects, there is an uncertainty
measuring the final tax effects.
6) Leases
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes
obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this assessment, and that is within the
control of the lessee.
4. SEGMENT INFORMATION:
(1) The Group's segment information is prepared for the purpose of resource allocation and assessment of
segment performance. The Group's reportable segments are as follows:
Segment Type of service
Air transport Passenger and cargo transportation

Aerospace Maintenance of aircraft and manufacture of aircraft parts
Hotel and others Accommodation service and etc.
(2) Operating results by reportable segments for the years ended December 31, 2021 and 2020, are as
follows:
(In millions of Korean won)

2021
Consolidation
Air transport Aerospace Hotel Others adjustments Total
Total sales G 8,732,860 366,669 94,286 147,431 (324,421) 9,016,825

Intersegment
sales (240,063) - (8,144) (76,214) 324,421 -
Net sales 8,492,797 366,669 86,142 71,217 - 9,016,825
Operating
income (loss) 1,500,962 (36,998) (58,395) 68 12,332 1,417,969
Depreciation
and
amortization (1,624,930) (14,039) (61,032) (8,712) 13,348 (1,695,365)
Total assets 25,533,326 1,045,496 1,465,356 345,219 (1,717,494) 26,671,903
- 33 -

2020
Consolidation
Air transport Aerospace Hotel Others adjustments Total
Total sales 7,144,614 564,701 74,029 150,603 (323,416) 7,610,531

Intersegment
sales (224,125) - (9,059) (90,232) 323,416 -
Net sales 6,920,489 564,701 64,970 60,371 - 7,610,531
Operating
income (loss) 200,632 (12,876) (80,356) (178) 102 107,324
Depreciation
and
amortization (1,874,619) (14,607) (64,352) (9,686) 976 (1,962,288)
Total assets 24,149,888 1,024,704 1,398,554 343,256 (1,726,341) 25,190,061
(3) Operating results by geographical area for the years ended December 31, 2021 and 2020, are as follows:
(In millions of 2021

Korean won) Local companies Overseas companies
International
Domestic lines and Asia and Consolidation
lines and sale export Subtotal Americas others adjustments Total
Total sales 1,198,800 8,052,151 9,250,951 82,477 7,818 (324,421) 9,016,825

Intersegment sales - - (306,954) (9,649) (7,818) 324,421 -
Net sales - - 8,943,997 72,828 - - 9,016,825
Operating
income (loss) - - 1,462,881 (55,564) (1,680) 12,332 1,417,969
Total assets - - 26,912,306 1,460,977 16,114 (1,717,494) 26,671,903
(In millions of 2020

Korean won) Local companies Overseas companies
International
Domestic lines and Asia and Consolidation
lines and sale export Subtotal Americas others adjustments Total
Total sales 1,204,254 6,668,554 7,872,808 61,131 8 (323,416) 7,610,531

Intersegment sales - - (312,193) (11,214) (9) 323,416 -
Net sales - - 7,560,615 49,917 (1) - 7,610,531
Operating
income (loss) - - 180,750 (73,318) (210) 102 107,324
Total assets - - 25,527,759 1,386,311 2,332 (1,726,341) 25,190,061
(4) There is no single customer who accounted for more than 10% of the Group’s revenue for the years
ended December 31, 2021 and 2020.
- 34 -
5. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents as of December 31, 2021 and 2020, consist of the following:
(In millions of Korean won) December 31, 2021 December 31, 2020
Cash on hand 5,049 61

Bank deposits 1,180,326 1,314,505
1,185,375 1,314,566
6. RESTRICTED DEPOSITS AND FINANCIAL ASSETS PROVIDED AS COLLATERAL:
Restricted deposits and financial assets provided as collateral as of December 31, 2021, consist of the
following:
(In millions of Korean won and

thousands of US dollars) Purpose of restrictions
Short-term financial instruments 237,731 Deposit of trust account for payment purposes
related to asset-backed securitization (“ABS”)
loans, pledged for borrowings in foreign
currencies, payment guarantee for liquidated
damages for delay and others
$ 41,875 Pledged for issuance of foreign currency-
denominated bonds, guarantee deposit on North
America L/C
Financial assets at fair value 93,798 Pledged for issuance of foreign currency-
denominated bonds and pledged for equity
contributed to Korea Defense Guarantee
Cooperative
Long-term financial instruments 843 Deposit on accident compensation to employees,
checking accounts deposit and others
$ 9,542 Deposit of trust account for payment purposes
related to borrowings
332,372
$ 51,417
- 35 -
7. TRADE AND OTHER RECEIVABLES:
(1) Trade and other receivables as of December 31, 2021 and 2020, consist of the following:
(In millions of Korean December 31, 2021 December 31, 2020

won) Current Non-current Current Non-current
Trade receivables 960,997 39 676,496 16

Less loss allowance (1,056) (2) (1,396) (1)
959,941 37 675,100 15
Non-trade receivables 120,837 - 84,191 -
Less loss allowance (54,962) - (47,351) -
65,875 - 36,840 -
Accrued revenues 69,258 - 56,853 -
Less loss allowance - - - -
69,258 - 56,853 -
1,095,074 37 768,793 15
(2) Allowance for trade and other receivables as of December 31, 2021 and 2020, are as follows:
The credit period for the Group’s sales varies by types of sales and vendors. The Group sets the loss
allowance by applying the ECL model.
1) Aging analysis of trade receivables as of December 31, 2021 and 2020, is as follows:
December 31, 2021
(In millions of
Less than 6 6 months to 1 year to More than 3
Total
Korean won) months 1 year 3 years years
Trade receivables 957,244 2,531 998 263 961,036

Loss allowance (443) (236) (116) (263) (1,058)
Net balance 956,801 2,295 882 - 959,978
December 31, 2020

(In millions of Less than 6 6 months to 1 year to More than 3
Total
Trade receivables 669,535 6,324 653 - 676,512

Loss allowance (704) (346) (347) - (1,397)
Net balance 668,831 5,978 306 - 675,115
- 36 -
2) Aging analysis of impaired trade receivables as of December 31, 2021 and 2020, is as follows:
December 31, 2021
(In millions of
Total
Trade receivables - - - - -
December 31, 2020

(In millions of
Total
Trade receivables - - - G - -
3) Changes in loss allowance for trade receivables for the years ended December 31, 2021 and 2020, are as
follows:
2021
Not impaired
Collective Individual
(In millions of Korean won) assessment assessment Impaired Total
Beginning balance 1,397 - - 1,397

Bad debt expenses
(reversal) (116) - - (116)
Others (223) - - (223)
Ending balance 1,058 - - 1,058
2020
Not impaired
Collective Individual
(In millions of Korean won) assessment assessment Impaired Total
Beginning balance 1,283 - - 1,283

Bad debt expenses 2,215 - - 2,215
Others (2,101) - - (2,101)
Ending balance 1,397 - - 1,397
The Group considers changes in the credit rating of the trade receivables from the beginning of the credit
offering to the end of the reporting period in determining the recoverability of the accounts receivable. The
concentration of credit risk is limited, as there are a lot of vendors without interrelationships.
4) A significant change in the carrying amount of trade receivables has no effect on changes in loss
allowance for the year ended December 31, 2021.
- 37 -
8. FINANCIAL ASSETS AT FAIR VALUE:
Financial assets at fair value as of December 31, 2021 and 2020, consist of the following:
Financial assets at FVTOCI:

Listed equity securities1 99,097 82,859
Unlisted equity securities 65,468 62,690
164,565 145,549
Financial assets at FVTPL:
Unlisted equity fund 7,000 7,000
Equity investment2 15,204 13,695
Others3 443,027 302,026
465,231 322,721
629,796 468,270
1
As of December 31, 2021, listed equity securities amounting to 78,614 million are pledged as collateral
for foreign currency-denominated bonds (see Note 6).
2
As of December 31, 2021, equity investment amounting to 15,184 million is pledged to the Korea
Defense Guarantee Cooperative as collateral for performance guarantee (see Note 6).
3
As of December 31, 2021 and 2020, others include perpetual convertible bonds amounting to 441.5
billion and 300 billion, respectively.
9. OTHER FINANCIAL ASSETS:
(1) Other financial assets as of December 31, 2021 and 2020, consist of the following:
(In millions of December 31, 2021 December 31, 2020

Korean won) Current Non-current Current Non-current
Guarantee deposits 24,714 123,765 46,735 134,115

Loan 18 25 14 32
24,732 123,790 46,749 134,147
(2) There are no other financial assets overdue or impaired as of December 31, 2021 and 2020.
- 38 -
10. INVENTORIES:
Inventories as of December 31, 2021 and 2020, consist of the following:

December 31, 2021 December 31, 2020
Acquisition Valuation Book Acquisition Valuation Book

cost allowance value cost allowance value
Merchandise 1,905 - 1,905 2,111 - 2,111

Work in progress 222,623 (13,972) 208,651 203,482 (11,983) 191,499
Finished goods 5,787 - 5,787 6,503 (299) 6,204
Raw materials 97,422 - 97,422 102,784 - 102,784
Supplies 255,545 (6,208) 249,337 218,917 (6,269) 212,648
Materials in
transit 33,962 - 33,962 35,949 - 35,949
617,244 (20,180) 597,064 569,746 (18,551) 551,195
The Group recognized reversal of loss on valuation of inventories amounting to 1,628 million (2020:
reversal of loss on valuation of inventories of 1,998 million) for the year ended December 31, 2021.
11. LEASE RECEIVABLES:
(1) The Group has offered the leases of the aircraft, and the minimum lease payments and present value of
the leases as of December 31, 2021 and 2020, are as follows:
Less than one year 124,838 121,520

Within one year to five years 267,690 280,703
More than five years 24,096 55,625
416,624 457,848
Discount on present value (53,924) (38,860)
362,700 418,988
Less current portion of lease receivables (120,573) (107,480)
242,127 311,508
(2) Lease receivables were not impaired as of December 31, 2021 and 2020.
- 39 -
12. INVESTMENTS IN SUBSIDIARIES:
(1) Investments in subsidiaries as of December 31, 2021 and 2020, consist of the following:
(In percentage, %) Ownership of the Group

December 31, December 31,
Principal business Location 2021 2020
Korea Airport Service Co.,

Ltd.5 Airport support service Korea 59.54% 59.54%
Hanjin Information Systems
& Telecommunication Co., Software development
Ltd. 5 and supply Korea 99.35% 99.35%
Transportation and hotel
Air Total Service Co., Ltd.4 management service Korea 100.00% 100.00%
Hanjin International Corp. 4,5 Hotel and rental service USA 100.00% 100.00%
Hanjin Central Asia LLC Hotel business Uzbekistan 100.00% 100.00%
Incheon Aviation Tech Co., Aircraft engine repair
Ltd. (“IAT”) 4,5,6 service Korea 100.00% 86.13%
Wangsan Leisure
Development Co., Ltd. Sports and leisure
(“WLD”)3,6 service Korea 100.00% 100.00%
Korea Global Logistics Cargo information
System Co., Ltd. network service Korea 95.00% 95.00%
Air Korea Co., Ltd. Airport support service Korea 100.00% 100.00%
Seconding personnel
TAS service USA 100.00% 100.00%
Cyber Sky Co., Ltd. Online sales Korea 100.00% 100.00%
Small aircraft transport
K-Aviation Co., Ltd. service Korea 100.00% -
KAL 19 Asset Securitization Issuance and repayment
Specialty Company1,2 of ABS loans Korea - 0.50%
Specialty Company1 of ABS loans Korea 0.50% 0.50%
1
The Group classified KAL Asset Securitization Specialty Companies as investments in subsidiaries because
the Group controls an investee when it is exposed or has the rights to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
- 40 -
2
The liquidation procedures for the subsidiaries were completed for the year ended December 31, 2021, and
these were excluded from investments in subsidiaries.
3
The above investments in subsidiaries were transferred to assets held for sale in the Parent Company’s
separate financial statements for the year ended December 31, 2020.
4
Impairment loss was recognized in the Parent Company’s separate financial statements for years ended
December 31, 2021 and 2020.
5
As of December 31, 2021, the above investments in subsidiaries are pledged as collateral (see Note 16).
6
Additional investment was made for the year ended December 31, 2021. Financial information of the
Group’s major subsidiaries as of December 31, 2021, is as follows:
Hanjin Information
Systems &
Korea Airport Service Telecommunication Co.,
(In millions of Korean won) Co., Ltd. Ltd.
Current assets 172,333 68,637

Non-current assets 206,648 29,534
Total assets 378,981 98,171
Current liabilities 36,985 17,181
Non-current liabilities 52,510 7,139
Total liabilities 89,495 24,320
Total shareholders’ equity 289,486 73,851
The above financial information is based on the separate financial statements of each subsidiary and the
amount before internal transactions being eliminated.
- 41 -
(2) Financial performance information of the Group’s major subsidiaries for the year ended December 31,
2021, is as follows:
Hanjin Information
Systems &
Korea Airport Service Telecommunication Co.,
(In millions of Korean won) Co., Ltd. Ltd.
Sales 329,587 133,817

Operating income (loss) (957) 2,576
Profit for the year 2,332 1,433
Other comprehensive income (loss) 13,590 (171)
Total comprehensive income 15,922 1,262
(3) Cash flow information of the Group’s major subsidiaries for the year ended December 31, 2021, is as
follows:
Hanjin Information
Systems &
Korea Airport Telecommunication
(In millions of Korean won) Service Co., Ltd. Co., Ltd.
Cash flows from operating activities 16,078 9,440

Cash flows from investing activities (2,097) (399)
Cash flows from financing activities (34,087) (4,682)
Net changes in cash and cash equivalents (20,106) 4,359
Effects of exchange rate changes 4 -
Beginning balance 124,308 7,908
Ending balance 104,206 12,267
- 42 -
(4) The ownership interest held by non-controlling interests and details of financial position, results of
operation and dividends vested in non-controlling interests by each of the major subsidiaries as of and
for the year ended December 31, 2021, are as follows:
Hanjin Information
Systems &
Korea Airport Telecommunication
(In millions of Korean won) Service Co., Ltd. Co., Ltd.
Ownership interest held by non-controlling interests1 38.36% 0.65%

Cumulative non-controlling interests 109,147 489
Net income vested in non-controlling interests 519 -
Dividends paid to non-controlling interests - 2
1
The ownership interest held by non-controlling interests represents the effective ownership interest, which is
calculated based on number of outstanding shares excluding treasury stock, and it may differ from the
aggregated total, less the effective ownership interest held by the Group.
13. INVESTMENTS IN ASSOCIATES:
(1) Investments in associates as of December 31, 2021 and 2020, consist of the following:

December 31, 2021
Principal Ownership Acquisition Closing
Description business Location (%) cost Book value month
Hanjin Int'l Japan Airport support

Co., Ltd.1 service Japan 50.00 4,266 6,229 December
In-flight catering
Korean Air and duty-free
C&D2,3 business Korea 20.00 96,340 - December
100,606 6,229
1
The Group reclassified Hanji Int’l Japan Co., Ltd. as a subsidiary to an associate as 50% or less of
ownership and it is determined not to have control over the entity before December 31, 2020.
2
The Group’s interest was reduced to zero due to the elimination of unrealized gains or losses resulting from
intragroup transactions. As of December 31, 2021, gain on valuation of equity method is not recognized
until all the cumulative unrealized gains or losses of 98.9 billion are eliminated.
3
The Group provides the above investments in associate as collateral for borrowings of Korean Air C&D (see
Note 16).
- 43 -

December 31, 2020
Principal Ownership Acquisition Closing
Description business Location (%) cost Book value month
Hanjin Int'l Japan Airport support

Co., Ltd. service Japan 50.00 4,266 6,402 December
In-flight catering
and duty-free
Korean Air C&D business Korea 20.00 96,340 - December
100,606 6,402
(2) Changes in investments in associates for the years ended December 31, 2021 and 2020, are as follows:
2021
Loss on
valuation of Net changes in
(In millions of Beginning equity interests of Ending
Korean won) balance Acquisition method equity method Others balance
Hanjin Int'l Japan

Co., Ltd. 6,402 - (29) (144) - 6,229
2020
Loss on
valuation of Net changes in
(In millions of Beginning equity interests of Ending
Korean won) balance Acquisition method equity method Others balance
Hanjin Int'l Japan

Co., Ltd. 7,288 - (857) (29) - 6,402
Korean Air C&D - 96,340 - - (96,340) -
7,288 96,340 (857) (29) (96,340) 6,402
- 44 -
(3) Financial information of the Group’s investments in associates as of December 31, 2021, is as follows:
(In millions of Korean won) Hanjin Int'l Japan Co., Ltd. Korean Air C&D1

Non-current assets 97 921,204
Total assets 13,837 976,127
Current liabilities 1,335 26,716
Non-current liabilities 44 541,138
Total liabilities 1,379 567,854
Total shareholders’ equity 12,458 408,273
Sales 7,818 99,166
Operating loss (1,504) (30,694)
Other comprehensive income (loss) (289) 633
Total comprehensive loss (346) (61,227)
1
Financial statements of Korean Air C&D were prepared in conformity with Accounting Standards for Non-
Public Entities in the Republic of Korea, and were converted into K-IFRSs to align accounting policies with
investment companies for the accounting of equity methods.
(4) The cumulative changes in the Group’s equity in net asset value of the associates not recognized due to
the respective book value of the investment account balance being zero as of December 31, 2021, are as
follows:
Cumulative losses not
Losses not recognized recognized up to
(In millions of Korean won) in 2021 December 31, 2021
Korean Air C&D (10,218) (98,947)
Cumulative losses not

Losses not recognized recognized up to
(In millions of Korean won) in 2020 December 31, 2020
Korean Air C&D (88,729) (88,729)
14. INTERESTS IN JOINT OPERATIONS:
The Group owns a joint investment building, which has the joint arrangement. Under the joint arrangement,
the Group has 70% ownership of Inha International Medical Center building located in Incheon, Korea, and
recognized income and expenses in relation to its share.
The Parent Company has agreed to cooperate with Delta Airlines on joint business for the Pacific route since
May 1, 2018. The two companies have joint marketing and sales activities on the Pacific route and share their
financial results.
- 45 -
15. PROPERTY, AIRCRAFT AND EQUIPMENT:
(1) Changes in property, aircraft and equipment for the years ended December 31, 2021 and 2020, are as
follows:
2021
(In millions of Beginning Ending
Korean won) balance Acquisition Disposal Depreciation Others1 Transfer balance
Land 1,922,709 2,761 (12,778) - 31,325 - 1,944,017

Leased land 25,668 - - - (25,668) - -
Buildings 1,075,406 571 (37) (38,020) 58,998 - 1,096,918
Structures 59,596 2,713 (38) (7,349) 1,803 2,429 59,154
Machinery 97,323 1,853 (79) (11,085) 937 25,026 113,975
Aircraft 2,186,051 2 (3,468) (181,359) 151,236 17,264 2,169,726
Engines 980,715 23,572 - (147,456) 68,687 67,648 993,166
Aircraft parts 1,151,748 158,641 (29,438) (193,049) (2) - 1,087,900
Others 177,828 13,470 (11,140) (52,061) 3,561 10,249 141,907
Construction in
progress 1,069,703 138,782 (8) - (43,666) (230,752) 934,059
Right-of-use
asset-aircraft 2 9,520,952 - - (945,337) (481,087) 73,097 8,167,625
Right-of-use
asset-others 214,441 211,858 (141,793) (77,118) (1,751) - 205,637
18,482,140 554,223 (198,779) (1,652,834) (235,627) (35,039) 16,914,084
1
Other increase or decrease includes effects of changes in foreign currency translation adjustments,
capitalized borrowing costs, transfer to assets held for sale, transfer to investments in properties and transfer
of aircraft and engines to lease receivables and others.
2
The Group recognized an impairment loss of 275,442 million for aircraft that does not have a plan to
operate in the future, taking into account the recent market value of used aircraft and cost of disposal.
- 46 -
2020
(In millions of Beginning Ending
Korean won) balance Acquisition Disposal Depreciation Others1 Transfer balance
Land 2,474,380 - (3,400) - (548,271) - 1,922,709

Leased land 25,668 - - - - - 25,668
Buildings 2 1,594,692 4,328 (1,058) (49,018) (474,355) 817 1,075,406
Structures 2 90,389 33 - (8,851) (22,309) 334 59,596
Machinery 2 115,604 460 (236) (10,567) (8,004) 66 97,323
Aircraft 3 2,550,731 34,974 (137,218) (253,123) (34,909) 25,596 2,186,051
Engines 3 1,341,469 20,078 (65,801) (275,412) (140,037) 100,418 980,715
Aircraft parts 1,243,148 27,051 (15,852) (183,944) 81,345 - 1,151,748
Others 2 226,150 21,216 (7,154) (57,276) (8,210) 3,102 177,828
Construction in
progress 4 866,986 505,152 - - (73,943) (228,492) 1,069,703
Right-of-use
asset-aircraft 10,501,255 6 - (1,005,012) (70,708) 95,411 9,520,952
Right-of-use
asset-others 279,968 41,932 (22,412) (82,343) (2,704) - 214,441
21,310,440 655,230 (253,131) (1,925,546) (1,302,105) (2,748) 18,482,140
1
Other increase or decrease includes effects of changes in foreign currency translation adjustments,
capitalized borrowing costs, transfer to assets held for sale, transfer to investments in properties and transfer
of right-of-use asset to lease receivables and others.
2
Other increase or decrease in buildings, structures, machinery and others includes impairment losses
amounting to 354,902 million, 4,175 million, 7,043 million and 3,675 million, respectively.
Details of impairment tests for property, aircraft and equipment and investments in properties, which are
significant in the Group’s consolidated financial statements, are described in Note 15-(2) below.
3
The Group recognized an impairment loss of 128,281 million for aircraft that does not have a plan to
operate in the future, taking into account the recent market value of used aircraft and cost of disposal. In
addition, impairment tests were performed on the air transport asset group, primarily composed of aircraft
and engines, and as a result, no grounds were found to determine that the impairment occurred.
4
Other decrease in construction in progress includes impairment loss amounting to 8,050 million.
- 47 -
(2) Cash-generating unit impairment loss
Due to COVID-19, operating income of hotel and office rental business unit of the Group declined, and the
market value of commercial real estate in the United States, where it is located, is falling sharply year on
year. Under these circumstances, the Group performed impairment tests since it identified indications that
properties that belong to the hotel and office rental business might be impaired.
As of December 31, 2021, the Group performed impairment tests based on the assessment conducted by
BDO USA, LLP, an external independent valuation specialist with appropriate qualifications and experience.
The Group used the income approach as a valuation technique to estimate the recoverable amount of the
asset, and used reasonable assumptions based on available market information. As a result, the Group
recognized impairment loss on property, aircraft and equipment amounting to 355,328 million and
impairment loss on investments in properties amounting to 76,122 million for the year ended December
31, 2020. There is no recognized impairment loss or reversal of impairment loss for the year ended
December 31, 2021.
(3) The Group capitalized borrowing costs of 19,286 million for the year ended December 31, 2021, and
the specific borrowing interest rate and general borrowing interest rate used to calculate borrowing costs
are 3.6% and 3.37%, respectively.
(4) The Group has been applying revaluation model to land. Land was revalued on December 31, 2017, by
an external independent valuation specialist. The revaluation was conducted based on ‘Standard Public
Land Price Evaluation Method’ and ‘transaction comparison approach’ according to the conditions of
transactions with an independent third party. The book value of land using revaluation model and
historical cost model as of December 31, 2021, is as follows:
(In millions of Korean won) December 31, 2021

Revaluation model Historical cost model
Land 1,944,017 1,247,935
The Group has recognized accumulated revaluation surplus of 736,969 million, before income tax, and has
recognized accumulated revaluation loss of 40,887 million until December 31, 2021.
(5) Fair value measurements of land and leased land by fair value hierarchy levels as of December 31, 2021,
are as follows:

Level 1 Level 2 Level 3 Total
Land - - 1,944,017 1,944,017
(6) There were no changes between Level 1 and Level 2 for the year ended December 31, 2021.
- 48 -
16. PLEDGED ASSETS AND GUARANTEES (NON-FINANCIAL ASSETS):
(1) As of December 31, 2021, non-financial assets provided as collateral are as follows:
Collateralized
amount or
(In millions of Korean won, number of
except share data) Book value shares4 Guarantee Description
Land and buildings, etc.1 3,048,168 2,575,530 Collateral for

Aircraft and engines, etc.2 2,547,612 3,864,444 Korea short-term and
Development long-term
Bank (“KDB”) borrowings and
Facility usage rights 25,490 72,000 and others others
Emergency
liquidity
assistance from
government-run
banks and
borrowings of
Hanjin
Investments in subsidiaries 109,719,465 International
and investments in associates3 - shares KDB and others Corp and others
5,621,270
1
The carrying value of land and buildings provided as collateral consists of property, aircraft and equipment;
investments in properties.
2
The carrying value of aircraft and engines provided as collateral consists of property, aircraft and equipment
and lease receivables.
3
The investments in subsidiaries – Hanjin Int’l Corp. and investments in associates – Korean Air C&D Co.,
Ltd. are pledged as collateral for the borrowings of Hanjin Int’l Corp. and Korean Air C&D Co., Ltd.,
respectively. Among the investments in subsidiaries, Korean Airport Service Co., Ltd., Hanjin Information
Systems & Telecommunication Co., Ltd. and IAT are pledged as collateral for emergency financial
assistance from government-run banks. The investments in subsidiaries provided as collateral are part of the
Group, and there is no separate carrying amount in the consolidated financial statements, and investment in
associates has no separate carrying value in the consolidated financial statements due to the suspension of
the application of the equity method (see Note 13).
4
Collateralized amounts in foreign currency were converted into Korean won using the exchange rate as of
December 31, 2021.
(2) The Group has provided right-of-use asset (leased aircraft) as collateral to the lessors for the lease
obligations.
- 49 -
17. INVESTMENTS IN PROPERTIES:
(1) Changes in the carrying amounts of investments in properties for the years ended December 31, 2021
and 2020, are as follows:
(In millions of Korean won) 2021

Beginning Ending
balance Acquisition Depreciation Others1 balance
Land 73,609 - - (564) 73,045

Buildings 182,968 - (10,146) 16,643 189,465
256,577 - (10,146) 16,079 262,510
1
Other increase or decrease was mainly due to the transfer between investments in properties and assets held
for sale and foreign currency translation adjustments.

Beginning Ending
balance Acquisition Depreciation Others1 balance
Land 71,613 - - 1,996 73,609

Buildings 2
267,715 - (12,516) (72,231) 182,968
339,328 - (12,516) (70,235) 256,577
1
Other increase or decrease was mainly due to the transfer of property, aircraft and equipment to investments
in properties and foreign currency translation adjustments.
2
Other increase or decrease in buildings includes impairment loss amounting to 76,122 million. Details of
impairment tests for property, aircraft and equipment and investments in properties, which are significant in
the Group’s consolidated financial statements, are described in Note 15-(2) above.
(2) Revenue related to investments in properties was 15,347 million and 15,506 million for the years
ended December 31, 2021 and 2020, respectively.
(3) Fair value of investments in properties as of December 31, 2021, is as follows:

Book value Fair value
Land and buildings 262,510 290,444
Investments in properties were revalued by an external independent valuation specialist. The revaluation
was conducted based on Standard Public Land Price Evaluation Method and income approach and the
Group used reasonable assumptions based on available market information.
- 50 -
(4) Fair value measurements of investments in properties by fair value hierarchy levels as of December 31,
2021, are as follows:
(In millions of Korean December 31, 2021

won) Level 1 Level 2 Level 3 Total
Land and buildings - - 290,444 290,444
(5) There were no changes between Level 1 and Level 2 for the year ended December 31, 2021.
18. INTANGIBLE ASSETS:
Changes in the carrying amount of intangible assets for the years ended December 31, 2021 and 2020, are as
follows:
(In millions of Korean 2021

won) Beginning Amortiza Ending
balance Acquisition Disposal -tion Others1 balance
Goodwill 14,761 - - - - 14,761

Facility usage rights 44,249 - - (9,434) - 34,815
Software 196,429 5,176 (235) (21,140) 35,114 215,344
Other intangibles 12,706 167 - (1,811) 2 11,064
268,145 5,343 (235) (32,385) 35,116 275,984
1
Other increase or decrease was due to the transfer of construction in progress to intangible assets and others.
(In millions of Korean 2020

won) Beginning Amortiza Ending
balance Acquisition Disposal -tion Others1 balance
Goodwill2 17,515 - - - (2,754) 14,761

Facility usage rights 54,291 - - (10,042) - 44,249
Software 3
209,086 5,830 (816) (20,254) 2,583 196,429
Other intangibles 13,970 - (651) (761) 148 12,706
294,862 5,830 (1,467) (31,057) (23) 268,145
1
Other increase or decrease was due to the transfer of construction in progress to intangible assets and the
transfer to assets held for sale.
2
Other increase or decrease in goodwill includes impairment loss amounting to G2,754 million.
3
Other increase or decrease in software includes impairment loss amounting to G165 million.
- 51 -
19. OTHER ASSETS:
Other assets as of December 31, 2021 and 2020, consist of the following:

Advance payments 67,876 54,766 54,391 54,766

Prepaid expenses 31,712 12,446 28,905 15,436
Others 17,245 703,404 50,424 303,370
116,833 770,616 133,720 373,572
20. TRADE AND OTHER PAYABLES:
Trade and other payables as of December 31, 2021 and 2020, consist of the following:

Trade payables 139,160 - 86,354 -

Non-trade payables 42,802 973 43,926 1,750
Accrued expenses 692,430 19,472 613,041 20,879
Dividends payables 4 - 1,418 -
874,396 20,445 744,739 22,629
- 52 -
21. BORROWINGS AND DEBENTURES:
(1) Short-term borrowings as of December 31, 2021 and 2020, consist of the following:
(In millions of December 31, December 31,

Korean won) Lender Annual interest rate 2021 2020
Short-term Hanjin KAL Co.,

borrowings Ltd. - - 800,000
in Korean Korea Development 2.60% – 2.93% 220,000 190,000
won Bank (“KDB”)
3M MOR + 1.71% 150,000 -
NongHyup Bank
and others - - 420,000
370,000 1,410,000

Short-term KDB 3M LIBOR + 2.26% –
borrowings 2.36% 212,204 194,752
in foreign 3M EURIBOR + 1.87% 107,387 -
currencies Hana Bank 3M LIBOR + 2.34% –
2.40% 55,624 51,049
3M TIBOR + 2.17% 49,452 -
- - 50,605
KB Kookmin Bank 3M LIBOR + 2.45% –
and others 2.48% 143,481 150,961
3M MOR + 1.74% 47,420 43,520
615,568 490,887
985,568 1,900,887
- 53 -
(2) Long-term borrowings as of December 31, 2021 and 2020, consist of the following:
(In millions of
Korean Annual December 31, December 31,
won) Lender interest rate Maturity 2021 2020
Long-term The Export-Import

borrowings Bank of Korea 3.00% – 3.84% 2029-06-28 391,100 450,900
in Korean KDB 3.19% – 4.15% 2027-05-23 310,332 662,101
won Woori Capital Co.,
Ltd. - - - 703
Korea Investment &
Securities Co.,
Ltd. and others 3.10% – 5.10% 2023-12-15 127,189 84,377
828,621 1,198,081
Long-term The Export-Import 3M LIBOR +

borrowings Bank of Korea 2.51% – 2.90% 2024-06-27 404,955 389,750
in foreign KDB 3M LIBOR +
currencies 2.00% 2025-09-30 73,353 85,272
3M EURIBOR
+1.90% 2022-02-27 93,964 227,501
Standard Chartered 3M LIBOR +
Bank1 5.00% 2022-12-23 407,575 250,240
China Bank of 3M LIBOR +
Communications2 2.30% 2023-08-28 56,074 80,870
Shinhan Bank and 3M LIBOR +
others 1.75% – 2.37% 2024-11-29 214,892 351,990
2.32% – 2.56% 2024-06-28 42,691 27,950
1,293,504 1,413,573
2,122,125 2,611,654
Less current portion of long-term borrowings (1,202,921) (840,821)
919,204 1,770,833
1
As of December 31, 2021, deposit of trust account amounting to $9,542 thousand for payment related to
borrowings was classified as long-term financial instruments (see Note 6).
2
Woori Bank guarantees the payment of the principal and interest of the borrowing from China Bank of
Communications.
- 54 -
(3) Debentures as of December 31, 2021 and 2020, consist of the following:

Annual interest December 31, December 31,
Series Issue date Maturity rate 2021 2020
76-1st
(Guaranteed) 2018-02-27 2021-02-27 - - 42,170
76-2nd
(Guaranteed) 2018-02-27 2021-02-27 - - 7,907
77th
(Non-guaranteed) 2018-03-06 2021-03-06 - - 326,400
80th
(Guaranteed) 2018-06-28 2021-06-28 - - 32,640
81-2nd
(Non-guaranteed) 2018-08-06 2021-08-06 - - 115,000
82-2nd
(Non-guaranteed) 2018-11-23 2021-11-23 - - 100,000
84th1(Guaranteed) 2019-02-21 2022-02-21 0.32% 309,072 316,278
85-1st
(Non-guaranteed) 2019-04-30 2021-04-30 - - 100,000
85-2nd
(Non-guaranteed) 2019-04-30 2022-04-30 3.54% 200,000 200,000
87-1st
(Non-guaranteed) 2019-07-29 2021-07-29 - - 80,000
87-2nd
(Non-guaranteed) 2019-07-29 2022-07-29 3.23% 170,000 170,000
88th2 (Guaranteed) 2019-09-04 2022-09-04 2.00% 355,650 326,400
90-1st
(Non-guaranteed) 2019-11-06 2021-11-05 - - 90,000
90-2nd
(Non-guaranteed) 2019-11-06 2022-11-04 3.70% 80,000 80,000
91-1st
(Non-guaranteed) 2020-02-03 2022-02-03 3.37% 54,000 54,000
91-2nd
(Non-guaranteed) 2020-02-03 2023-02-03 3.81% 106,000 106,000
93-1st
(Non-guaranteed) 2021-04-15 2022-10-14 2.32% 65,000 -
93-2nd
(Non-guaranteed) 2021-04-15 2023-04-14 2.87% 160,000 -
93-3rd
(Non-guaranteed) 2021-04-15 2024-04-15 3.50% 125,000 -
94-1st
(Non-guaranteed) 2021-04-23 2023-04-21 2.82% 40,000 -
94-2nd
(Non-guaranteed) 2021-04-23 2024-04-23 3.45% 10,000 -
95-1st
(Non-guaranteed) 2021-07-07 2023-01-06 2.39% 70,000 -
95-2nd
(Non-guaranteed) 2021-07-07 2023-07-07 3.14% 136,000 -
95-3rd
(Non-guaranteed) 2021-07-07 2024-07-05 3.67% 144,000 -
96-1st
(Non-guaranteed) 2021-10-07 2023-10-06 3.43% 146,000 -
- 55 -

Annual interest December 31, December 31,
Series Issue date Maturity rate 2021 2020
96-2nd
(Non-guaranteed) 2021-10-07 2024-10-07 3.90% 124,000 -
2,294,722 2,146,795
Discount on debentures (5,824) (9,093)
2,288,898 2,137,702
Less current portion of debentures (1,233,722) (894,117)
Present value of discounts, less current portion 3,055 829
1,058,231 1,244,414
1
The Export-Import Bank of Korea has provided guarantees up to a maximum principal and interest for the
84th guaranteed debentures.
2
KDB has provided guarantees up to maximum of principal and interest for the 88th guaranteed debentures.
(4) ABS loans as of December 31, 2021 and 2020, consist of the following:

December 31, December 31,
Description Maturity Annual interest rate 2021 2020
KAL-19 ABS 2021-07-11 - - 160,000

KAL-21 ABS 2022-04-07 5.69% 50,000 155,000
KAL-22 ABS 2023-01-26 5.28% 120,000 210,000
KAL-23 ABS 2021-10-27 - - 108,800
KAL-24 ABS 2024-09-23 2.94% 350,000 470,000
KAL-25 ABS 2025-03-30 3.71% 475,000 576,600
KAL-26 ABS 2025-05-29 5.95% 112,367 132,314
KAL-27 ABS 2025-06-05 4.25% 201,031 263,742
KAL-28 ABS 2025-06-12 5.08% 208,645 246,195
1,517,043 2,322,651
Discount on ABS loans (7,781) (12,237)
1,509,262 2,310,414
Less current portion of ABS loans (559,156) (830,113)
Present value of discounts,
less current portion 3,714 4,632
953,820 1,484,933
As of December 31, 2021, the Group classifies financial assets amounting to KRW 91,115 million, JPY
2,709,666 thousand, USD 24,835 thousand and HKD 106,054 thousand as short-term financial instruments
for the purpose of guaranteeing repayment in relation to ABS (see Note 6).
- 56 -
The ABS loans are the borrowings to repay with future sales receivable that will be held at the time of selling
the airline ticket in the future. The subject receivables and the period are as follows:
Description Receivables Period
2017.03.30- Of the following conditions, until

the earlier date
Domestic passenger credit card sales
KAL-21 ABS (i) 2022.04.07
receivable (Samsung card)
(ii) When the ABS loan’s principal and interest
have been redeemed in total
the earlier date
KAL-22 ABS (i) 2023.01.26
receivable (Shinhan card)
Domestic passenger credit card sales the earlier date
KAL-24 ABS receivable (Hyundai/Lotte/NongHyup Bank (i) 2024.09.23
card) (ii) When the ABS loan’s principal and interest
the earlier date
(i) 2025.03.30
receivable (BC card)
KAL-25 ABS 2020.06.03- Of the following conditions, until
Korea region cargo receivables (settlement of the earlier date
Cargo Accounts Settlement System (i) 2025.03.30
(“CASS”)) (ii) When the ABS loan’s principal and interest
the earlier date
Hong Kong region cargo receivables
KAL-26 ABS (i) 2025.05.29
(settlement of CASS)
the earlier date
(i) 2025.06.05
Japan region cargo receivables (settlement of (ii) When the ABS loan’s principal and interest
KAL-27 ABS CASS) have been redeemed in total
(iii) Another day the trustee agrees with the
transferee beneficiary and the trustee
agency
the earlier date
North America region cargo receivables
KAL-28 ABS (i) 2025.06.12
(settlement of CASS)
(5) As of December 31, 2021, the Group provided assets as collateral or pledges to outstanding balance
amounting to 2,798,348 million of borrowings and debentures.
- 57 -
22. LEASE OBLIGATIONS:
(1) Lease obligations as of December 31, 2021 and 2020, consist of the following:

Lender Annual interest rate December 31, 2021 December 31, 2020
3M JPY
BEYOND 50 LIMITED LIBOR+0.75%–1.98% 113,039 137,011
ECA-2014A Ltd. 3.86% 127,395 139,454
3M EURIBOR+0.31%
3M LIBOR+1.00%–
ECA-2015A Ltd. 3.00% 187,042 222,196
3M LIBOR+0.47%–
2.75%
EXPORT LEASING (2015-A) LLC 3.55% 191,781 212,271
3M LIBOR+0.47%–
EXPORT LEASING (2015-B) LLC 2.75% 191,416 214,283
Export Leasing 2016-A 6M EURIBOR+1.05% 107,969 126,543
EXPORT LEASING INS (2017-A) 6M LIBOR+1.25%–
LLC 2.60% 222,503 233,144
3M EURIBOR+0.90%,
EXPORT LEASING INS 2018 LLC 5.10% 115,927 136,451
EXPORT LEASING SECA (2018) 3M JPY LIBOR+0.28%
LIMITED 3M EURIBOR+2.62% 216,619 259,378
2.45%–2.68%
JAY LEASING 2017 3M LIBOR+2.70% 207,880 236,249
KALECA11 AVIATION Ltd. 3M LIBOR+0.85% 145,491 208,650
3M EURIBOR+1.30%–
KE DANOMIN AVIATION 2018 2.18% 106,397 128,662
KE Export Leasing (2012) Ltd. 3M LIBOR+1.05% 109,353 140,129
3M LIBOR+0.25%–
KE Export Leasing (2013-D) LLC 0.30% 144,252 162,533
3M LIBOR+1.95%
PC2018 Limited 5.10% 125,925 132,856
3M LIBOR+2.00%–
SKY HIGH LXX LEASING 2.40% 211,060 228,920
KE Export Leasing (2013-C) and
others 1.86%–7.75% 1,639,753 2,093,603
ALC Blarney Aircraft Limited 4.06% 214,809 252,864
Celestial Aviation Trading 21 Limited 2.73% 121,069 125,923
HONG KONG AIRCRAFT
LEASING I COMPANY LIMITED 2.74% 104,576 106,704
Wings Aviation 62696 Limited 4.06% 103,550 108,999
Jin Shan 23 Ireland Company Limited 4.06% 100,045 103,608
Four Six Four Aircraft LAK (Ireland)
II Limited 4.06% 96,895 102,419
- 58 -

Lender Annual interest rate December 31, 2021 December 31, 2020
JACKSON SQUARE AVIATION

IRELAND LIMITED 4.06% 95,868 101,333
Soyang Aviation Leasing Limited
(Goshawk) 4.06% 94,043 99,619
Tancheon Aviation Leasing Limited
(Goshawk) 4.06% 92,229 97,915
Incheon Int' Airport Corporation and
others 1.45%–5.10% 414,130 465,486
5,601,016 6,577,203
Less current portion of obligation under leases, net of present
value of discounts (1,382,926) (1,387,671)
4,218,090 5,189,532
The Export-Import Bank of the United States and others have provided payment guarantees of $1,993 million
for above lease obligations as of December 31, 2021. Also, the Group has provided payment guarantees of
$63 million to Industrial & Commercial Bank of China, the beneficiary of the lease obligations due to Yian
Limited, and $102 million to Industrial & Commercial Bank of China, the beneficiary of the lease obligations
due to PC2018 Limited as of December 31, 2021.
Interest expense on lease obligations and total cash outflows related to the leases liabilities are 123,181
million and 1,553,489 million, respectively. Lease payments not recognized as liabilities, such as short-
term leases and leases of low-value assets, are 8,415 million.
(2) Minimum lease payments and present value of lease obligations as of December 31, 2021, consist of the
following:
Less than one year 1,433,552

Within one year to five years 3,783,655
More than five years 703,651
5,920,858
Present value of discounts (319,842)
5,601,016
23. EMPLOYEE BENEFITS:

(1) Net defined benefit liabilities as of December 31, 2021 and 2020, consist of the following:
Present value of defined benefit obligations 1,921,396 1,921,246

Fair value of plan assets (298,915) (315,945)
1,622,481 1,605,301
- 59 -
(2) Changes in the carrying amount of net defined benefit liabilities for the years ended December 31, 2021
and 2020, are as follows:
(In millions of Korean won) 2021 2020

Present Present
value of value of
defined defined
benefit Fair value of benefit Fair value of
obligations plan assets Total obligations plan assets Total
Beginning balance 1,921,246 (315,945) 1,605,301 1,944,170 (336,454) 1,607,716

Current service cost 155,434 - 155,434 167,980 - 167,980
Interest expense (income) 35,415 (5,009) 30,406 36,790 (5,671) 31,119
Remeasurement of the net
defined benefit liabilities (88,202) 2,643 (85,559) (109,134) 914 (108,220)
Succession of defined
benefit liabilities - - - 693 - 693
Retirement benefits paid 1
(96,859) 24,923 (71,936) (120,143) 28,704 (91,439)
Contributions - (8,023) (8,023) - (3,438) (3,438)
Effect of business
disposition (5,593) 2,496 (3,097) - - -
Transfer to liabilities held
to sale (45) - (45) (169) - (169)
Others - - - 1,059 - 1,059
Ending balance 1,921,396 (298,915) 1,622,481 1,921,246 (315,945) 1,605,301
1
It includes retirement benefits paid of 8,904 million transferred to related parties due to the sale of in-
flight catering and duty-free business for the year ended December 31, 2020 (see Note 44).
(3) The significant actuarial assumptions used as of December 31, 2021 and 2020, are as follows:
December 31, 2021 December 31, 2020
Discount rate 2.41%–2.60% 1.58%–2.04%

Future salary growth rate 2.86%–5.84% 2.36%–3.20%
(4) Details of plan assets as of December 31, 2021 and 2020, are as follows:
Deposits, savings, etc. 162,319 182,865

Equity instrument 19,534 12,476
Debt instrument 86,248 94,803
Others 30,814 25,801
298,915 315,945
- 60 -
Investment strategies and policies for plan assets are balanced with risk reduction and profit taking. The
objective of minimizing the volatility of assets in relation to liabilities is made through distributed
investments in assets, partial asset-liability strategies and hedging.
The Group makes extensive distributed investments in various types of assets to achieve the targeted return,
while reducing the volatility of the assets associated with the liabilities (risk adjustment) as a whole. The
allocation of assets for a fixed return is partly matched by pension liabilities that are similar to bonds with
long-term maturity.
Actual profit for the plan asset for the years ended December 31, 2021 and 2020, is 2,366 million and
4,364 million, respectively.
(5) The sensitivity analysis of the defined benefit obligation to changes in the principal assumptions for the
years ended December 31, 2021 and 2020, is as follows:
2021
(In millions of Korean won) Effect on defined benefit obligation
Increase in Decrease in
Changes in assumption assumption assumption
Discount rate 1% increase / decrease (161,016) 187,226

Future salary growth rate 1% increase / decrease 184,591 (161,953)
2020
(In millions of Korean won) Effect on defined benefit obligation
Increase in Decrease in
Changes in assumption assumption assumption
Discount rate 1% increase / decrease (160,554) 186,358

Future salary growth rate 1% increase / decrease 183,470 (161,296)
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. Since there is a correlation between actuarial assumptions, the above sensitivity analyses will not
indicate actual changes in the defined benefit obligation. The sensitivity of the defined benefit obligation to
changes in principal actuarial assumptions is calculated using the projected unit credit method, the same
method applied when calculating the defined benefit obligations recognized in the consolidated statements of
financial position.
- 61 -
(6) The expected maturity analysis of undiscounted defined benefit obligation as of December 31, 2021, is as
follows, and the weighted-average maturity of defined benefit obligations is 9.22 years:
Less than 5 years 935,188

Between 5 and 10 years 796,950
Between 10 and 20 years 1,862,769
More than 20 years 1,240,608
4,835,515
24. PROVISIONS:
Changes in the provision liabilities for the years ended December 31, 2021 and 2020, are as follows:

Beginning Charged to Ending
balance profit or loss Payment Others balance
Current:
Provision for construction loss - 5 - 24,801 24,806
Provision for leased aircraft
maintenance1 43,527 - (1,847) 61,583 103,263
Provision for construction
warranties - - (3,898) 7,626 3,728
Others4 11,338 - (649) (10,689) -
54,865 5 (6,394) 83,321 131,797
Non-current:
maintenance1 215,622 44,220 - (120,581) 139,261
warranties 1,976 5,653 - (7,626) 3
Others 245 260 (62) - 443
217,843 50,133 (62) (128,207) 139,707
272,708 50,138 (6,456) (44,886) 271,504
- 62 -

Beginning Charged to Ending
balance profit or loss Payment Others balance
Current:
Provision for construction loss - 15 - (15) -
maintenance1,2 49,188 - - (5,661) 43,527
Provision for coupon for
passenger flight tickets3 2,659 - (2,752) 93 -
Others4 11,836 680 (1,178) - 11,338
63,683 695 (3,930) (5,583) 54,865
Non-current:
maintenance1,2 193,069 18,786 (1,894) 5,661 215,622
warranties 256 1,774 (54) - 1,976
4
Others 759 9 (523) - 245
194,084 20,569 (2,471) 5,661 217,843
257,767 21,264 (6,401) 78 272,708
1
The Group has maintenance obligations related to leased aircraft. In order to fulfill the obligations, the
Group has recognized a provision for leased aircraft maintenance by estimating future maintenance costs as
it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligations.
2
Other increases or decreases in provision for leased aircraft maintenance are the effect of adjustments in
current portion of provision for leased aircraft maintenance following the extension of the lease contract for
the year ended December 31, 2020.
3
The Group agreed to provide $26,000 thousand in flight ticket coupons to the plaintiff in relation to the U.S.
Court class action on airline ticket price collusion of passenger flights and all payments have been
completed as of December 31, 2020.
4
The Group recognized a provision for the restoration of forest due to the production of limestone. The
Group transferred the obligation for the restoration of forest to the buyer according to disposal of mining
business for the year ended December 31, 2021.
- 63 -
25. DEFERRED REVENUE (CUSTOMER LOYALTY PROGRAM):
The Group manages its frequent-flyer program (“FFP”), “SKYPASS,” a customer loyalty program that
provides incentives through accrued mileage, such as free flight tickets and to upgrade to the next tier, in
addition to other benefits to its customers and alliance companies. The Group allocates the fair value of the
consideration received in respect of the sales into the award credits and service revenue. The sales price
allocated to award credits is not recognized as revenue until the obligation has been performed. The Group
recognized deferred revenue relating to the FFP in the consolidated statement of financial position as of
December 31, 2021, in total amount of 2,624,699 million, including 47,412 million of advance receipts
from customers and 2,577,287 million of deferred revenue, which include the current portion amounts of
311,821 million.
26. DERIVATIVE INSTRUMENTS:
(1) Details of derivative financial instruments held for trading as of December 31, 2021, are as follows:
Type of transaction Contract amount Maturity Accounting policy
Oil price option BBL 800 thousand 2022-02-28 Trading

Interest rate swaps USD 27,357 thousand 2023-06-07 Trading
Cross-currency interest rate swaps JPY 21,179,157 thousand 2025-09-30 Trading
KRW 1,305,725 million 2027-11-17 Trading
Currency forwards contracts USD 101,912 thousand 2022-02-16 Trading
(2) Impact on the consolidated financial statements in relation to derivatives as of and for the year ended
December 31, 2021, is as follows:
(In millions of Korean Statement of financial

won) position Statement of comprehensive income (loss)
Financial Financial
derivative derivative Valuation Valuation Transaction Transaction
assets liabilities gain loss gain loss
Oil price option 12,489 - 13,634 - 48,946 -

Interest rate swaps 7 7 71 - 91 57
Cross-currency interest
rate swaps 54,328 5,594 116,199 - 106,663 43,667
Currency forwards
contracts - 3,344 - 3,344 - -
66,824 8,945 129,904 3,344 155,700 43,724
- 64 -
27. OTHER FINANCIAL LIABILITIES:
Other financial liabilities as of December 31, 2021 and 2020, consist of the following:
Current Non-current Current Non-current
Guarantee deposits received ୸ 4,122 ୸ 39,489 ୸ 6,268 ୸ 44,425

୸ 4,122 ୸ 39,489 ‫୸ٻ‬ 6,268 ୸ 44,425
28. OTHER LIABILITIES:
Other liabilities as of December 31, 2021 and 2020, consist of the following:
Current Non-current Current Non-current
Advances 977,135 - 262,544 -

Withholdings 52,240 420 47,778 378
Unearned revenues 430,581 75,160 399,844 108,107
Others 779 20,523 6,786 20,335
1,460,735 96,103 716,952 128,820
29. SHARE CAPITAL:
(1) Share capital as of December 31, 2021 and 2020, consists of the following:
(In millions of Korean Number of

won, except share shares Number of December 31, December 31,
data and par value) authorized shares issued Par value 2021 2020
Common share 347,820,825 5,000 1,739,104 871,048

700,000,000
Preferred share 1
1,110,794 5,000 5,554 5,554
700,000,000 348,931,619 1,744,658 876,602
1
As the non-voting preferred share, in case of cash dividends, it gets 1% more dividends than common share.
If the Parent Company cannot pay dividends, the preferred share gets voting right from the resolution of the
next general meeting of shareholders that the Parent Company does not pay dividends until the resolution of
the general meeting of shareholders that the Parent Company pays dividends.
(2) Changes in the number of shares issued and outstanding for the years ended December 31, 2021 and
2021 2020
(Number of shares) Common Preferred Common Preferred
share share share share
Beginning balance 174,209,713 1,110,794 94,844,634 1,110,794

Issuance of share capital 173,611,112 - 79,365,079 -
Ending balance 347,820,825 1,110,794 174,209,713 1,110,794
- 65 -
30. OTHER CAPITAL SURPLUS:
(1) Other capital surplus as of December 31, 2021 and 2020, consists of the following:
Additional paid-in capital 3,873,855 1,442,150

Treasury shares (2) (1)
Hybrid securities 299,967 678,158
Other capital surplus 74,580 76,427
4,248,400 2,196,734
(2) Changes in additional paid-in capital for the years ended December 31, 2021 and 2020, are as follows:
Beginning balance 1,442,150 719,666

Issuance of share capital1 2,431,705 722,484
Ending balance 3,873,855 1,442,150
1
The Parent Company issued 173,611,112 and 79,365,079 common shares as a result of a capital increase for
the years ended December 31, 2021 and 2020, respectively.
(3) Hybrid securities as of December 31, 2021 and 2020, consist of the following:
(In millions of Korean won) Interest December 31, December 31,

Date of issue Maturity rate 2021 2020
Non-guaranteed bearer
debenture 2019-05-17 2049-05-17 - - 199,045
debenture 2019-09-30 2049-09-30 - - 179,146
convertible bond1 2020-06-22 2050-06-22 2.28% 299,967 299,967
299,967 678,158
- 66 -
1
The interest rate is 2.28% for two years from issuance, and the interest rate after two years is applied as
initial interest rate + 2.50% + the national treasury bond rate after ‘n’ years from issuance - the national
bond rate at issuance. The interest rate after three years is applied as interest rate applied during previous
year + 0.5% per annum. In addition, for bonds that have not been converted until the date of two years from
issuance, the amount equivalent to the two-year guarantee rate of return (the amount equivalent to
5.53446% of the electronic registration amount, which is the amount computed by deduction of the initial
interest rate from the annual compound interest rate of 4.98%) will be additionally paid on the interest
payment date that is two years from the date of issue regardless of advance redemption. The Parent
Company may exercise the right of annual advance redemption on the date two years after the hybrid
securities issuance and on the date of payment of each interest. If willingness to extend maturity is notified
within 30 days prior to the maturity date, maturity can be extended for 30 years under the same condition. In
addition, the Parent Company can choose not to pay the interest on hybrid securities. However, the Parent
Company cannot suspend payment of the interest if the decision on share dividend, purchase and
redemption of shares, and profit retirement occurred in the last 12 months. The hybrid securities can be
converted to 15,706,806 common shares at a conversion price of 19,358 from the time when one year has
elapsed from the issuance date to May 22, 2050. However, the conversion price may be adjusted according
to other criteria set in the bond issuance contract, such as issuance of new shares at the value below market
price and others. As a result of the capital increase on July 17, 2020, the conversion price was changed to
17,617, and the number of shares changed to 17,029,006 shares, and as a result of the capital increase on
March 12, 2021, the conversion price was changed to ୸14,706 and the number of shares changed to
20,399,836 shares.
(4) Changes in other capital surplus for the years ended December 31, 2021 and 2020, are as follows:
Beginning balance 754,584 1,152,073

Issuance of hybrid securities - 299,967
Repayments of hybrid securities (380,000) (697,450)
Others (39) (6)
- 67 -
31. RETAINED EARNINGS (ACCUMULATED DEFICITS) AND DIVIDENDS:
(1) Retained earnings (accumulated deficits) as of December 31, 2021 and 2020, consist of the following:
Legal reserve 1 23,222 23,221

Unappropriated retained earnings (undisposed
accumulated deficits) 86,855 (545,724)
110,077 (522,503)
1
The Korean Commercial Code requires the Group to appropriate as a legal reserve an amount equal to at
least 10% of cash dividends paid for each accounting period until the reserve equals 50% of the stated
capital. The legal reserve may be used to reduce a deficit or transferred to share capital.
(2) Changes in retained earnings (accumulated deficits) for the years ended December 31, 2021 and 2020,
are as follows:
Beginning balance (522,503) (345,777)

Profit (loss) for the year 577,684 (211,546)
Remeasurement of the net defined benefit liabilities 61,814 82,257
Gain (loss) on valuation of financial assets at FVTOCI - (8)
Disposal of financial assets at FVTOCI 1,991 2,148
Transfer of revaluation surplus 7,827 8,067
Dividends for hybrid securities (16,736) (57,644)
Ending balance 110,077 (522,503)
(3) The Parent Company paid dividendsfor hybrid securities for the years ended December 31, 2021 and
2020.
32. OTHER CAPITAL COMPONENTS:
(1) Other capital components as of December 31, 2021 and 2020, consist of the following:
Gain on valuation of financial assets at FVTOCI, net of tax 52,213 37,360

Share of other comprehensive income (loss) of associates,
net of tax (413) (268)
Foreign currency translation adjustments (6,445) 5,334
Revaluation surplus 543,448 549,102
588,803 591,528
Assets held for sale:
Revaluation surplus 61,966 64,139
650,769 655,667
- 68 -
(2) Gain on valuation of financial assets at FVTOCI, net of tax
Changes in equity instruments classified as gain on valuation of financial assets at FVTOCI, net of
tax, for the years ended December 31, 2021 and 2020, are as follows:

Change in fair value, net of tax 16,843 11,521
Reclassification to retained earnings due to disposal of
equity instruments (1,990) (2,148)
The investments’ revaluation reserve in equity instruments at FVTOCI is stated as the net amounts of
accumulated revaluation deducting the amounts transferred to retained earnings from derecognition of equity
instruments.
(3) Changes in revaluation surplus for the years ended December 31, 2021 and 2020, are as follows:

Reclassification to retained earnings due to disposal of assets
held for sale (7,827) (7,815)
Reclassification to retained earnings related to investments in
properties - (253)
Impact of changes in income tax rate - (11,991)
33. REVENUE FROM CONTRACTS WITH CUSTOMERS AND RELEVANT CONTRACT ASSE
TS AND LIABILITIES:
(1) The Group has recognized the following amounts relating to revenue from contracts with customers for
the years ended December 31, 2021 and 2020:
Revenue from contracts with customers 8,929,729 7,522,315

Revenue from other sources: Rental and sublease rental
income 87,096 88,216
Total revenue 9,016,825 7,610,531
- 69 -
(2) Disaggregation of revenue from contracts with customers
The Group’s revenue from the transfer of goods and services over time and at a point in time for the
years ended December 31, 2021 and 2020, by segments is as follows:

At a point in time Over time
Air transportation 8,411,116 -

Aerospace 340,635 26,034
Others 88,000 63,944
8,839,751 89,978

At a point in time Over time
Air transportation 6,843,446 -

Aerospace 539,394 25,307
Others 59,901 54,267
7,442,741 79,574
(3) The Group has recognized the following assets and liabilities related to contracts with customers:
Contract assets1 46,587 54,326

Contract liabilities2 3,164,175 2,843,165
1
Contract assets are included in the amount due from customers for contract work and prepaid expenses.
Prepaid expenses that have been recognized as expenses for the years ended December 31, 2021 and 2020,
are 2,242 million and 4,637 million, respectively.
2
Contract liabilities are included in the amount due to customers for contract work, advance receipts from
customers, unearned revenues and deferred revenues.
- 70 -
34. SELLING AND ADMINISTRATIVE EXPENSES:
Selling and administrative expenses for the years ended December 31, 2021 and 2020, are as follows:
Salaries1 216,541 228,990

Retirement and severance benefits 29,040 33,418
Depreciation and rental 56,520 69,948
Amortization 18,609 15,442
Sales commission 37,667 55,770
Advertising 17,288 15,443
Welfare 66,591 50,774
Training 2,873 4,816
Communications 31,891 18,471
Taxes and dues 36,288 33,696
Facility maintenance 8,483 9,465
Commission 112,095 61,588
Others 52,923 55,282
686,809 653,103
1
Employee Retention Subsidy from the Ministry of Employment and Labor was deducted for the
years ended December 31, 2021 and 2020 (see Note 38).
35. FINANCIAL INCOME AND COSTS:

(1) Financial income for the years ended December 31, 2021 and 2020, is as follows:
Interest income 70,130 42,446

Dividend income 5,600 4,469
Gain on valuation of derivatives 129,904 -
Gain on derivative transactions 155,700 37,261
361,334 84,176
(2) Financial costs for the years ended December 31, 2021 and 2020, are as follows:
Interest expense 390,934 513,863

Loss on valuation of derivatives 3,344 128,871
Loss on derivative transactions 43,724 109,296
438,002 752,030
- 71 -
36. OTHER NON-OPERATING INCOME AND EXPENSES:
(1) Other non-operating income for the years ended December 31, 2021 and 2020, consists of the
following:
Gain on foreign currency transaction 194,621 197,343

Gain on foreign currency translation 180,531 610,105
Reversal of allowance for other doubtful accounts - 183
Gains on disposal of financial assets at FVTPL 13 -
Gain on disposal of property, aircraft and equipment 12,217 9,398
Gain on disposal of assets held for sale 23,667 29,617
Gain on disposal of intangible assets - 275
Miscellaneous income 22,878 58,895
Gain on valuation of financial assets at FVTPL 143,050 242
Reversal of impairment loss on intangible assets 2 148
576,979 906,206
(2) Other non-operating expenses for the years ended December 31, 2021 and 2020, consist of the
following:
Other bad debt expenses 7,931 565

Loss on foreign currency transaction 275,377 310,485
Loss on foreign currency translation 484,419 212,138
Loss on disposal of other investments 6,050 -
Loss on disposal of property, aircraft and equipment 2,678 60,182
Loss on disposal of assets held for sale - 15
Loss on disposal of intangible assets 184 75
Impairment loss on disposal of property, aircraft and
equipment - 636,768
Impairment loss on right-of-use assets 275,442 -
Impairment loss on intangible assets - 2,919
Donation 3,092 10,680
Miscellaneous loss 19,950 46,689
Loss on valuation of financial assets at FVTPL 14 -
1,075,137 1,280,516
- 72 -
37. INCOME TAX EXPENSES (BENEFIT):
(1) Income tax expenses (benefit) for the years ended December 31, 2021 and 2020, are as follows:
Current income tax expense 148,799 (123,253)

Changes in deferred taxes due to temporary differences1 (91,924) (102,597)
Tax loss carryforward2 232,556 153,963
Total amount of income tax effect 289,431 (71,887)
Items recorded directly in equity (25,099) (39,537)
Income tax expenses (benefit) 3 264,332 (111,424)
1
Temporary differences – deferred tax assets at the end of year 712,621 620,697
Temporary differences – deferred tax assets at the beginning of
year 620,697 518,100
Changes in deferred taxes due to temporary differences (91,924) \ (102,597)
2
Tax loss carryforward – deferred tax assets at the end of year 525 233,081
Tax loss carryforward – deferred tax assets at the beginning of
year 233,081 387,044
Changes in deferred taxes due to tax loss carryforward 232,556 153,963
3
It includes income tax expense of 223,118 million related to discontinued operations for the year ended
December 31, 2020.
(2) Reconciliation between profit (loss) before income tax expense and income tax expense (benefit) for the
years ended December 31, 2021 and 2020, is as follows:
Profit (loss) before income tax expense 843,114 (962,620)

Tax at applicable tax rates 181,151 (216,110)
Adjustments:
Permanent differences 49,259 172,107
Impact of expiration of tax credit carryforward (4,502) (383)
Others 38,424 (67,038)
Income tax expense (benefit) 264,332 (111,424)
The effective tax rate1 G 31% G -
1
The effective tax rate for the year ended December 31, 2020, was not computed due to net loss before
income tax benefit.
- 73 -
(3) Changes in temporary differences and deferred income tax assets (liabilities) as of and for the years ended
December 31, 2021 and 2020, are as follows:

Beginning Increase / Ending Beginning Increase / Ending
balance1 (decrease) 1 balance balance1 (decrease) 1 balance
Temporary differences:
Defined benefit obligation G 1,564,886 G 39,598 GG 1,604,484 G G 1,524,847 G 40,039 GG 1,564,886
maintenance G 259,149 G (16,625) G G 242,524 G G 242,257 G 16,892 G G 259,149
Depreciation and
amortization expense G (488,825) G 336,842 G G (151,983) G G (446,823) G (42,002) G G (488,825)
Deferred revenue G 2,599,775 G 147,716 G G 2,747,491 G G 2,522,523 G 77,252 G G 2,599,775
Gain from assets contributed G 3,001 G -GG 3,001 G G 3,001 G -GG 3,001
Gain (loss) on foreign
currency translation G 276 G (276) G G -G G 150 G 126 G G 276
Accrued expense G 101,535 G (9,219) G G 92,316 G G 126,594 G (25,059) G G 101,535
Gain on valuation of
financial assets at FVTOCI G (57,129) G (161,835) G G (218,964) G G (48,369) G (8,760) G G (57,129)
property, plant and
equipment G (787,164) G 50,718 G G (736,446) G G (783,953) G (3,211) G G (787,164)
derivatives G 137,468 G (198,691) G G (61,223) G G (5,651) G 143,119 G G 137,468
Asset revaluation surplus G (180,402) G 11,756 G G (168,646) G G (168,190) G (12,212) G G (180,402)
Others G (582,293) G 1,539,454 G G 957,161 G G (93,026) G (489,267) G G (582,293)
G 2,570,277 G 1,739,438 G G 4,309,715 G G 2,873,360 G (303,083) G G 2,570,277
Tax losses carryforward 965,638 (935,288) 30,350 1,609,880 (644,242) 965,638
Tax credits - - - 6,264 (6,264) -
Deferred tax asset 853,778 (140,632) 713,146 905,144 (51,366) 853,778
1
Beginning temporary differences include temporary differences recognized as deferred income tax assets
(liabilities) as of December 31, 2020 and 2019, which have been partially adjusted during actual tax
adjustments for the years ended December 31, 2021 and 2020. Therefore, the Group reflected the
aforementioned adjustment in the change in temporary differences for the years ended December 31, 2021
and 2020.
- 74 -
(4) Deferred income tax expense directly adjusted to shareholders’ equity for the years ended December 31,
2021 and 2020, consists of the following:
Deferred income tax expense directly adjusted to Parent

Company’s equity
Gain (loss) on valuation of financial assets at FVTOCI (4,406) (2,928)
Loss on impairment of long-term investment securities (OCI) - 8
Loss on impairment of long-term investment securities (retained
earnings) - (8)
Remeasurement of net defined benefit liabilities (16,972) -
Asset revaluation surplus (retained earnings) (1,605) (24,394)
Asset revaluation surplus (OCI) 1,605 (2,576)
Adjustment of K-IFRS 1116 (retained earnings) - (9,415)
(21,378) (39,313)
Deferred income tax expense directly adjusted to subsidiaries’
equity (3,721) (224)
(25,099) (39,537)
(5) Deductible temporary differences, tax loss and unused tax credits not recognized as deferred assets as of
December 31, 2021 and 2020, consist of the following:
Investments in subsidiaries and associates and others 1,916,620 1,649,831

Guarantee fees 24,838 28,945
Tax losses carryforward 27,966 29,851
Deductible temporary differences - 57,138
1,969,424 1,765,765
- 75 -
38. CLASSIFICATION OF EXPENSES BY NATURE:
Expenses classified by nature for the years ended December 31, 2021 and 2020, consist of the
following:
Salaries1 and retirement benefit costs 1,563,838 1,622,879

Welfare 389,915 303,681
Depreciation and amortization 1,695,365 1,962,288
Rental 19,915 15,104
Fuel and oil charges 1,786,081 1,238,879
Airport-related costs 627,010 623,068
Passenger and freight service costs 250,086 295,074
Sales commission 37,667 55,769
Commission 172,362 141,693
Taxes and dues 89,091 90,241
Others 967,526 1,154,531
Total2 7,598,856 7,503,207
1
Employee Retention Subsidy from the Ministry of Employment and Labor amounting to 142,909 million
(2020: 136,565 million) was deducted for the year ended December 31, 2021.
2
The amount is the sum of cost of sales and selling and administrative expenses from continuing operations
in the consolidated statements of comprehensive income (loss).
- 76 -
39. EARNINGS (LOSSES) PER SHARE:
(1) Basic earnings (losses) per share for the years ended December 31, 2021 and 2020, are as follows:
A. Common shares
(In millions of Korean won, except per share data) 2021 2020
Profit (loss) attributable to owners of the Parent

Company 577,684 (211,546)
Profit (loss) attributable to common shares 558,956 (267,274)
Profit (loss) attributable to common shares from
continuing operations 558,956 (856,490)
Profit attributable to common shares from
discontinued operations - 589,216
Weighted-average number of common shares
outstanding 320,649,582 shares 159,631,292 shares
Earnings (losses) per common shares from
Earnings per common shares from
B. Preferred shares
Profit (loss) attributable to owners of the Parent

Company 577,684 (211,545)
Profit (loss) attributable to preferred shares 1,992 (1,916)
Profit (loss) attributable to preferred shares from
Profit attributable to preferred shares from
Weighted-average number of preferred shares
outstanding 1,110,792 shares 1,110,792 shares
Earnings (losses) per preferred shares from continuing
operations 1,793 (5,526)
Earnings per preferred shares from discontinued
operations - 3,801
- 77 -
C. Weighted-average shares
(Number of shares) 2021 2020
Cumulative number of weighted-average common shares 117,037,097,376 58,425,052,837

Cumulative number of weighted-average preferred shares 405,439,080 406,549,872
Number of days 365 366
Weighted-average number of common shares outstanding1 320,649,582 159,631,292
Weighted-average number of preferred shares outstanding 1,110,792 1,110,792
1
The weighted-average number of common shares outstanding was calculated by reflecting the effect of
share capital increase without consideration arising from the issuance of new stocks with priority allocation
to shareholders for the year ended December 31, 2021, in calculation of the cumulative number of shares
issued for 2021 and 2020.
(2) Diluted earnings (losses) per share for the year ended December 31, 2021 and 2020, are as follows:
A. Common shares
Profit (loss) for the year attributable to common shares from

continuing operations ୸ 558,956 ୸ (856,490)
Profit for the year attributable to common shares from
Dividends for perpetual convertible bonds 6,669 3,420
Profit (loss) attributable to common shares from continuing
operations 565,624 (853,070)
Profit attributable to common shares from discontinued
operations - 589,216
340,402,957 168,506,455
Weighted-average number of common shares outstanding
shares shares
Earnings (losses) per common share from continuing
operations1 ୸ 1,662 ୸ (5,366)
Earnings per common share from discontinued operations ୸ - ୸ 3,497
1
Diluted loss per share from continuing operations for the year ended December 31, 2020, is the sa
me as the basic loss per share, as there are no dilutive potential common shares and dilutive effect
from continuing operations.
- 78 -
B. Weighted-average diluted common shares
(Number of shares) 2021 2020
Cumulative number of weighted-average common shares 117,037,097,376 58,425,052,837

Cumulative number of weighted-average potential
common shares 7,209,982,040 3,248,309,708
Number of days 365 366
Weighted-average number of common shares outstanding
used to calculate diluted earnings per share 340,402,957 168,506,455
C. Diluted earnings (losses) per preferred share for the year ended December 31, 2021 and 2020, are the
same as the basic earnings (losses) per preferred share, as there are no dilutive potential preferred shares
and dilutive effect.
40. FINANCIAL INSTRUMENTS:
(1) Classification and fair value of financial assets by category
The carrying amount and fair value of consolidated financial statements by category that are based on the
nature and characteristics, as well as fair value measurements of financial instruments by fair value hierarchy
level as of December 31, 2021 and 2020, are as follows. Fair value hierarchy is based on the degree to which
the fair value is observable as follows:
y Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
y Level 2: Inputs other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly.
y Level 3: Unobservable inputs for the asset or liability.
- 79 -
A. Financial assets
Financial assets by category and fair value hierarchy level as of December 31, 2021 and 2020, are as follows:

Category
Financial assets
Financial assets Financial assets at amortized
at FVTPL at FVTOCI cost Total
Cash and cash equivalents - - 1,185,375 1,185,375

Short-term and long-term financial
instruments - - 2,929,586 2,929,586
Financial assets at amortized cost - - 87 87
Unlisted fund 7,000 - - 7,000
Investments in other equity securities 15,204 - - 15,204
Perpetual convertible bonds and
saving insurance 443,027 - - 443,027
Listed securities - 99,097 - 99,097
Unlisted securities - 65,468 - 65,468
Financial derivative assets 66,824 - - 66,824
Trade and other receivables - - 1,095,111 1,095,111
Other financial assets - - 148,522 148,522
Lease receivables - - 362,700 362,700
532,055 164,565 5,721,381 6,418,001
- 80 -

Fair value hierarchy
Cash and cash equivalents 1,185,375 - - 1,185,375

instruments 2,929,586 - - 2,929,586
Financial assets at amortized cost - 87 - 87
Unlisted fund - - 7,000 7,000
Investments in other equity securities - - 15,204 15,204
saving insurance - - 443,027 443,027
Listed securities 99,097 - - 99,097
Unlisted securities - - 65,468 65,468
Financial derivative assets - 66,824 - 66,824
Trade and other receivables - - 1,095,111 1,095,111
4,214,058 66,911 2,137,032 6,418,001
- 81 -

Category
Financial assets
Cash and cash equivalents - - 1,314,566 1,314,566

instruments - - 502,756 502,756
Financial assets at amortized cost - - 287 287
Unlisted fund 7,000 - - 7,000
Investments in other equity securities 13,695 - - 13,695
saving insurance 302,026 - - 302,026
Listed securities - 82,859 - 82,859
Unlisted securities - 62,690 - 62,690
Trade and other receivables - - 768,808 768,808
322,721 145,549 3,186,301 3,654,571


instruments 502,756 - - 502,756
Financial assets at amortized cost - 287 - 287
Unlisted fund - - 7,000 7,000
Investments in other equity securities - - 13,695 13,695
saving insurance - - 302,026 302,026
Listed securities 82,859 - - 82,859
Unlisted securities - - 62,690 62,690
Trade and other receivables - - 768,808 768,808
1,900,181 287 1,754,103 3,654,571
- 82 -
B. Financial liabilities
Financial liabilities by category and fair value hierarchy level as of December 31, 2021 and 2020, are as
follows:

Book value by category
Financial
Financial liabilities liabilities at
at FVTPL amortized cost Total
Trade and other payables - 875,369 875,369

Borrowings - 4,616,955 4,616,955
Debentures - 2,288,898 2,288,898
Financial derivative liabilities 8,945 - 8,945
Other financial liabilities - 43,611 43,611
Lease obligations - 5,601,016 5,601,016
8,945 13,425,849 13,434,794

Trade and other payables - - 875,369 875,369

Borrowings - - 4,569,973 4,569,973
Debentures - - 2,274,022 2,274,022
Financial derivative liabilities - 8,945 - 8,945
Other financial liabilities - - 43,611 43,611
Lease obligations - - 5,601,016 5,601,016
- 8,945 13,363,991 13,372,936
- 83 -

Book value by category
Financial
Financial liabilities liabilities at
at FVTPL amortized cost Total
Trade and other payables - 746,489 746,489

Borrowings - 6,822,954 6,822,954
Debentures - 2,137,702 2,137,702
Financial derivative liabilities 137,468 - 137,468
Other financial liabilities - 50,693 50,693
Lease obligations - 6,577,203 6,577,203
137,468 16,335,041 16,472,509

Trade and other payables - - 746,489 746,489

Borrowings - - 6,791,332 6,791,332
Debentures - - 2,201,287 2,201,287
Financial derivative liabilities - 137,468 - 137,468
Other financial liabilities - - 50,693 50,693
Lease obligations - - 6,577,203 6,577,203
- 137,468 16,367,004 16,504,472
- 84 -
1) Financial assets and liabilities that are measured at fair value on a recurring basis
Some financial instruments are measured at fair value at the end of the reporting period. As of December 31,
2021, valuation techniques and the inputs used for recurring fair value measurements and disclosed fair value
that are categorized within Level 2 and Level 3 of the fair value hierarchy are as follows:
(In millions of Korean

won) December 31, 2021
Hierarchy Fain Valuation Significant Description of
level value techniques unobservable inputs relationships
Financial instruments at fair value

Financial
derivative assets G66,824
(Note 26)
Financial 2 Not applicable Not applicable
derivative
8,946
liabilities (Note
26) Discounted
cash flow Fair value will increase
method and (decrease) if the
others Sales growth rate, weighted-average cost
Financial assets at pretax operating of capital is reduced
fair value 3 530,699 income ratio, (increased) along with
(Note 8) weighted-average cost the increase (decrease)
of capital in pretax operating
margin and sales growth
rate
There are no significant changes between Level 1 and Level 2 for the years ended December 31, 2021 and
2020.
- 85 -
2) Changes in Level 3 for recurring fair value measurements for the years ended December 31, 2021 and

won) 2021
Beginning Valuation Valuation - Ending
balance Acquisition Disposal - OCI PL balance
Financial assets at
fair value 385,411 1,500 (2,039) 2,778 143,049 530,699

won) 2020
Beginning Valuation Valuation - Ending
balance Acquisition Disposal - OCI PL balance
Financial assets at
fair value 72,560 302,000 (2,244) 12,853 242 385,411
Total gains and losses on valuation of unlisted securities among financial assets at value as of December 31,
2021, were recognized as changes in gains and losses on valuation of financial assets at FVTOCI (see Note
32).
Valuation gain of 143,036 million from fair value changes of assets related to perpetual convertible bonds,
saving insurance and others has been recognized as other non-operating income (see Note 36).
3) Fair value disclosure of financial assets and liabilities unmeasured subsequently at fair value
Fair values of financial instruments measured at Level 1 are based on quoted prices. Fair values of financial
instruments measured at Level 2 are based on discounted cash flows and discounted future cash flows using
market rates adjusted for credit risk. There are no financial instruments disclosed with fair value because
they are measured at amortized cost and classified at Level 3 for the years ended December 31, 2021
and 2020.
4) Accumulated fair value changes related to financial liabilities at FVTPL for the year ended December 31,
Accumulated fair value changes recognized in gain or loss 8,946
- 86 -
5) Gains or losses on each category of financial instruments for the years ended December 31, 2021 and
(*) The transaction gain (loss) and gain (loss) from valuation of derivative instruments have been
classified into assets and liabilities based on the year-end valuation results of gain and loss generated
from each contract.
A. Financial assets

Financial assets
Interest income 21,633 - 48,497 70,130

Dividend income - 5,600 - 5,600
Bad debt expense - - (7,854) (7,854)
Gain on foreign currency translation - - 132,239 132,239
Loss on foreign currency translation - - (1,195) (1,195)
Gain on valuation of derivatives 116,567 - - 116,567
Gain on derivative transactions 103,859 - - 103,859
Loss on derivative transactions (40,636) - - (40,636)
Gain on valuation – profit or loss 143,036 - - 143,036
Gain on valuation – OCI
(before tax) - 21,514 - 21,514
Gain on disposal of financial assets
– profit or loss 13 - - 13
344,472 27,114 171,687 543,273

Financial assets
Interest income 1,336 - 41,109 42,445

Dividend income - 4,469 - 4,469
Bad debt expense - - (2,103) (2,103)
Gain on foreign currency translation - - 31,220 31,220
Loss on foreign currency translation (276) - (148,366) (148,642)
Gain on valuation – profit or loss 242 - - 242
Gain on valuation – OCI
(before tax) - 14,395 - 14,395
1,302 18,864 (78,140) (57,974)
- 87 -
B. Financial liabilities

Financial Financial
liabilities at liabilities at
FVTPL amortized cost Total
Interest expense - (390,934) (390,934)

Gain on foreign currency translation - 47,534 47,534
Loss on foreign currency translation - (480,770) (480,770)
Gain on valuation of derivative instruments 13,337 - 13,337
Loss on valuation of derivative instruments (3,344) - (3,344)
Gain on derivative transactions 51,840 - 51,840
Loss on derivative transactions (3,088) - (3,088)
58,745 (824,170) (765,425)

Financial Financial
liabilities at liabilities at
FVTPL amortized cost Total
Interest expense - (513,863) (513,863)

Gain on foreign currency translation 1 577,054 577,055
Loss on foreign currency translation - (60,965) (60,965)
Loss on valuation of derivative instruments (128,871) - (128,871)
Gain on derivative transactions 37,261 - 37,261
Loss on derivative transactions (109,296) - (109,296)
(200,905) 2,226 (198,679)
(2) Financial risk management
The financial sector manages the Group’s business and organizes the approach to the domestic and
international financial markets. Furthermore, it monitors and manages the financial risk related to the Group’s
business through internal risk reports, which analyze the scope and scale of each risk. These risks include the
market risk (including currency, interest rate, oil price fluctuation and price), credit risk and liquidity risk.
The Group tries to minimize the impact of these risks by using derivative instruments for risk aversion. Use
of derivatives is determined on the basis of the policy of the Group approved by the board of directors, but,
by this, documented principles about foreign exchange risk, interest rate risk, credit risk, use of non-
derivative financial instruments and derivative financial instruments, and the investment of excess liquidity
are provided. Internal auditor reviews the compliance with the policy and limitations of risk consistently. The
Group does not make and trade the financial instrument contracts, including derivatives, for speculative
purposes.
The finance division reports quarterly to the Risk Management Committee, an independent organization that
monitors policies and risks to mitigate risk exposure.
- 88 -
(3) Market risk
The Group is mainly exposed to financial risks, such as foreign exchange rate, interest rate and oil price. In
order to manage the market risk, the Group made a contract for derivative instruments.
1) Foreign exchange risk management
The Group is exposed to various foreign currency risks since it makes transactions in foreign currencies. By
using the currency swap contracts, the Group manages the degree of risk exposure due to the changes in
exchange rates within the limit decided in the policy that has been approved.
Carrying amount of monetary assets and liabilities denominated in foreign currencies as of December 31,
2021 and 2020, translated to Korean won, are as follows:
(In millions of Assets Liabilities

Korean won) 2021 2020 2021 2020
Foreign currencies
USD 2,249,087 1,947,333 7,102,509 7,200,452
EUR 64,029 70,918 1,113,747 1,308,341
JPY 153,838 99,720 1,092,043 1,320,231
Others 376,149 238,446 141,413 167,582
2,843,103 2,356,417 9,449,712 9,996,606
a. Foreign currency sensitivity analysis
The Group is mainly exposed to the risk on USD, EUR, JPY and other currencies (HKD, CNY and others).
The Group’s sensitivity to a 10% increase or 10% decrease and in Korean won (functional currency of the
Group) against the foreign currencies as of December 31, 2021 and 2020, is presented in the table below. The
sensitivity rate used in reporting foreign currency risk internally to key management personnel is 10% and it
represents management’s assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency-denominated monetary items and adjusts
their translation at the period-end for a 10% change in foreign currency rates. A positive number below
indicates an increase in income (loss) before income tax expense and other equity where the Korean won is
strengthening 10% against the relevant currency. For a 10% weakness of Korean won against the relevant
currency, there would be an equal and opposite impact on the income (loss) before income tax expense and
other equity.

USD EUR JPY Others
Profit (loss)
before income tax expense1 485,342 104,972 93,821 (23,474)

USD EUR JPY Others
Profit (loss)
before income tax expense1 525,312 123,742 122,051 (7,086)
- 89 -
1
Mainly attributable to exchange-rate fluctuations of receivables and payables denominated in USD, EUR
and JPY as of December 31, 2021 and 2020.
2) Interest risk management
The Group has borrowed funds on fixed and floating interest rates; therefore, the Group is exposed to interest
rate risk. In order to manage interest rate risk, the Group maintains a proper balance between floating-rate
borrowings and fixed-rate borrowings, or the Group enters into interest rate swap contracts. In order to
appropriately adjust to situation of interest and the defined tendency of risk, the risk aversion activity is
evaluated periodically and optimal hedging strategy is applied.
The exposure degree of interest rate risk for financial assets and liabilities is described in more detail in the
footnotes of liquidity risk management.
a. Interest sensitivity analysis
The sensitivity analyses above have been determined based on the exposure to interest rates for both
derivative and non-derivative instruments at the end of the reporting period. For floating-rate financial assets
and liabilities, the analysis is prepared assuming the amount of the financial assets and liabilities outstanding
at the end of the reporting period was outstanding for whole year. The sensitivity rate used in reporting
interest risk internally to key management personnel is 50 basis points and it represents management’s
assessment of the reasonable possible change in interest rates.
The Group’s sensitivity to a 50-basis-points change in interest rates on profit when all other variables are
fixed as of December 31, 2021 and 2020, is as follows:
- The Group’s profit will increase or decrease to G27,903 million (2020: 36,625 million), and it is mainly
due to the interest rate risk of floating-rate borrowings.
The interest rate sensitivity of the Group has decreased due to the decrease in floating-rate borrowings for the
year ended December 31, 2021.
b. Interest rate swap contracts
On the basis of the interest rate swap agreement, the Group will exchange the balance that is calculated by
applying the difference between fixed-rate and floating-rate interest of the nominal principal that is
determined in advance. These contracts will reduce the risk of changes in fair value of the fixed-rate
liabilities and cash flows of floating-rate liabilities. The fair value of the interest rate swap is determined by
discounting the future cash flows estimated using the credit risk that is inherent in the contract with the yield
curve as of December 31, 2021, and it is disclosed in the following table. The average interest rate is
determined based on the outstanding balance as of December 31, 2021.
- 90 -
The interest rate swap outstanding that pays fixed interest and receives variable interest as of December 31,
2021 and 2020, is as follows:
(In millions of Korean won, and

thousands of USD and JPY) 2021
Average contracted
fixed rate (%) Contract amount Fair value
For trading
Within one year 0.78 USD 7,142 (8)
1.59 KRW 411,390 (3,364)
More than one year 1.91 JPY 21,179,158 7,733
0.74 USD 20,215 7
2.39 KRW 894,335 44,366
(In millions of Korean won, and

thousands of USD and JPY) 2020
Average contracted
fixed rate (%) Contract amount Fair value
For trading
Within one year 2.85 JPY 32,145,000 (7,927)
2.67 KRW 213,455 (6,663)
More than one year 1.92 JPY 31,052,827 (26,052)
0.76 USD 54,291 (189)
1.94 KRW 1,084,612 (83,177)
3) Risk of changes in oil prices
Market prices of oil products, such as jet fuel, have fluctuated significantly due to various factors that affect
the supply and demand of crude oil in the world market. These factors will affect the cash flow and
performance of air transportation business, which is the largest business segment of the Group.
The effect of 10% change in oil price on operating income (loss) for the years ended December 31, 2021 and
2020, is as follows:

Increase Decrease Increase Decrease
by 10% by 10% by 10% by 10%
Operating income (loss) (178,608) 178,608 (123,889) 123,889
- 91 -
4) Other price risk
The Group is exposed to price risk arising from equity instruments. The Group holds equity instruments for a
strategic purpose and not for trading, and has not actively traded the investment assets.
a. Stock price sensitivity analysis
The following sensitivity analysis is based on the current stock price fluctuation risk as of December 31, 2021
and 2020.
The effect of 5% change in stock price is as follows:
- The Group’s other comprehensive income (loss) will increase (decrease) by 4,955 million (2020: 4,143
million), and it is due to the change of the listed and unlisted securities at FVTOCI.
The methods and assumptions used in preparing the sensitivity analysis above have not changed significantly
from the prior year.
(4) Credit risk management
The measurement standards used to estimate the maximum exposures and ECLs for the Group's credit risk
are described in 2) below.
In order to minimize credit risk, the Group has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of
financial loss from defaults. The Group has adopted a policy to receive adequate collateral. The Group has
traded only with companies that received a credit rating that is applicable to investment grade and above.
This credit information is provided by independent credit-rating agencies. If the Group is not able to use
information that credit-rating agency has provided, the Group uses another financial information and trading
performance, which officially announces, for the purpose of the Group, to determine the credit rating of
major customers. The Group has reviewed the exposure of credit risk and credit rating of customers
consistently, and transaction amounts are distributed to the approved customers.
Credit approvals and other monitoring procedures are also in place to ensure that follow-up action is taken to
recover overdue debts. Furthermore, the Group reviews the recoverable amount of each trade receivables and
debt investment on an individual basis at the end of the reporting period to ensure that adequate loss
allowance is made for irrecoverable amounts. In this regard, the directors of the Group consider that the
Group’s credit risk is significantly reduced. The trade receivables consist of many suppliers and distributors
in various regions. The credit evaluation about the trade receivables has been carried out consistently, and
where appropriate, credit guarantee insurance cover is purchased.
The credit risk on liquidity funds and derivatives is limited because the counterparty is a bank with a high
credit rating by an international rating agency.
- 92 -
1) Collateral held as security and other credit enhancements
The Group does not hold any collateral or other credit enhancements to cover its credit risks associated with
its financial assets, except the credit risk associated with lease receivables. The carrying amount of lease
receivables amounts to 362,700 million (2020: 418,988 million) and the fair value of the leased assets is
estimated to be approximately 596,066 million (2020: 628,999 million). The Group is not permitted to
sell or repledge the collateral in the absence of default by the lessee. There have not been any significant
changes in the quality of the collateral held for finance lease receivables. The Group has not recognized a loss
allowance for the lease receivables as a result of these collaterals.
2) The Group’s exposure to credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. As of December 31, 2021, the Group’s maximum exposure to credit risk without taking
into account any collateral held or other credit enhancements, which will cause a financial loss to the Group
due to failure to discharge an obligation by the counterparties and financial guarantees provided by the Group,
arises from:
- the carrying amount of the respective recognized financial assets as stated in the consolidated statement of
financial position; and
- the maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of
the likelihood of the guarantee being exercised.
The credit rating information is supplied by independent rating agencies where available and, if not available,
the Group uses other publicly available financial information and its own trading records to rate its major
customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread among approved counterparties.
As of December 31, 2021 and 2020, the Group's credit risk is excluded from the above disclosure as the
carrying amount best represents the maximum degree of exposure to credit risk.
(5) Liquidity risk management
The board of directors has ultimate responsibility for liquidity risk management to formulate the basic policy
for financing the Group’s short-term and long-term financing and managing liquidity management
regulations. The Group manages liquidity risk by maintaining the sufficient reserves and line of credit,
observing the predicted and actual cash flows and matching the maturity structure of financial assets and
financial liabilities.
- 93 -
1) Details related to liquidity and interest rate risk
The following table shows the expected maturity of the Group’s non-derivative financial assets, and the table
is formed based on the contractual maturity amount of the financial assets that are not discounted. In order to
understand the liquidity risk management of the Group, the information about the non-derivative financial
assets has to be included because the Group manages the liquidity based on the net assets and net liabilities.

More than
Within 1 year 1 year-5 years 5 years Total

assets 2,917,431 12,155 - 2,929,586
Finance lease receivables 124,838 267,690 24,096 416,624
Trade and other receivables 1,095,074 37 - 1,095,111
Securities at amortized costs 12 75 - 87
Other financial assets 24,732 - 123,790 148,522
5,347,462 279,957 147,886 5,775,305

More than

assets 492,657 10,096 3 502,756
Finance lease receivables 121,520 280,703 55,625 457,848
Trade and other receivables 768,793 15 - 768,808
Securities at amortized costs 211 275 - 486
Other financial assets 46,749 - 134,147 180,896
2,744,496 291,089 189,775 3,225,360
- 94 -
The following table shows the contractual maturity of the Group's non-derivative financial liabilities. The
table is formed based on the earliest maturity date on which the Group has to pay on the basis of the cash
flows of the financial liabilities that are not discounted, and the cash flows include both the principal and
interest. If the interest on cash flows is based on a floating interest rate, cash flows that are not discounted
have been derived based on the yield curve at the end of the reporting period. The maturity analysis is based
on the earliest maturity date on which the Group can be required to pay.

More than
Trade and other payables 874,396 973 - 875,369

Lease obligations 1,433,552 3,783,655 703,650 5,920,857
Borrowings 2,510,940 1,979,137 134,072 4,624,149
Debentures 1,299,941 1,103,246 - 2,403,187
6,118,829 6,867,011 837,722 13,823,562
More than
Trade and other payables 744,739 1,750 - 746,489

Lease obligations 1,475,336 4,276,762 1,272,476 7,024,574
Borrowings 4,027,551 3,045,035 246,151 7,318,737
Debentures 998,355 1,318,648 - 2,317,003
7,245,981 8,642,195 1,518,627 17,406,803
The amount of the floating-rate instruments (non-derivative financial assets and liabilities) contained in the
table above may be changed if the changes in floating interest rates are different from the estimated interest
rates at the end of the reporting period.
The table below shows in detail the liquidity analysis of derivative financial instruments based on contractual
maturities. The amount of the derivative instruments that are settled in net amounts is based on undiscounted
net cash inflows and outflows in accordance with the terms of the contract, and that of the derivative
instruments that are settled in gross amounts is based on undiscounted total cash inflows and outflows.
- 95 -
In case the amounts to be received or paid are not settled, an estimated settlement amount reflecting the
exchange rate and interest rate at the end of the reporting period is used.

Within 1 year 1 year-2 years More than 2 years
Net settlement:
Oil price option 12,489 - -
Gross settlement:
Interest rate swaps:
Inflows 725,865 317,852 569,969
Outflows (725,060) (309,759) (547,544)
Currency forwards contracts
Inflows 117,447 - -
Outflows (120,817) - -
9,924 8,093 22,425

Within 1 year 1 year-2 years More than 2 years
Net settlement:
Oil price option (8,053) (5,408) -
Gross settlement:
Interest rate swaps:
Inflows 770,435 601,039 525,313
Outflows (800,103) (657,982) (558,025)
(37,721) (62,351) (32,712)
6) Capital risk management
The Group manages its capital in order to maintain the ability to continuously provide profits to its
shareholders and interest parties and optimum capital structure to reduce capital expenses. In order to
maintain such optimum, the Group adjusts dividend payments, redeems paid-in capital to shareholders and
issues stocks to reduce liabilities or sell assets.
Like other entities in the industry in which the Group operates, the Group manages its capital based on the
ratio of net debt-to-total equity. Net debt refers to total borrowings (including obligation under finance leases
as presented in the consolidated statements of financial position), less cash and cash equivalents and short-
term financial assets, and total equity refers to capital presented in the consolidated statements of financial
position, plus net debt.
- 96 -
The Group’s net debt-to-total equity ratio as of December 31, 2021 and 2020, is as follows:
Total borrowings 12,506,869 15,537,859

Less cash and cash equivalents and short-term
financial assets 4,102,806 1,807,223
Net debt (A) 8,404,063 13,730,636
Capital (B) 6,865,689 3,311,724
Total equity (A+B) 15,269,752 17,042,360
Net debt-to-total equity ratio (A/(A+B)) 55.04% 80.57%
41. RELATED-PARTY TRANSACTIONS:
(1) The list of related parties of the Group as of December 31, 2021, is as follows:
Relationship Related parties
Significant influence over the Hanjin KAL Co., Ltd.

Group
Associate Hanjin Int’l Japan Co., Ltd. and Korean Air C&D
Other related parties1 Jin Air Co., Ltd., KAL Hotel Network Co., Ltd., Topas Co., Ltd.,
Jungseok Enterprise Co., Ltd., Hanjin Travel Service Co., Ltd. and
Waikiki Resort Hotel Inc.
Affiliated companies of a Hanjin Transportation Co., Ltd., Jungseok-Inha School’s Foundation,
conglomerate and others2 TAE IL CO., LTD., Jungseok Logistics Foundation, Pyeongtaek
Container Terminal Co., Ltd., Pohang Port 7th Terminal Operating
Co., Ltd., WAC INTERNATIONAL LOGISTICS CO., LTD.,
HANJIN INCHEON CONTAINER TERMINAL CO., LTD., Taeil
Catering Co., Ltd., HANJIN ULSAN NEWPORT OPERATION CO.,
LTD., Chungwon Freez Co., Ltd., WAC Air Service Co., Ltd., etc.
1
Jedong Leisure Co., Ltd. was excluded from related parties due to disposal of its share for the year ended
December 31, 2021.
2
Although the entity is not the related party of the Group in accordance with K-IFRS 1024, the entity
belongs to a large enterprise group to which the Group also belongs in accordance with the Monopoly
Regulation and Fair Trade Act.
- 97 -
(2) Significant transactions with related parties (except for treasury and equity transactions) for the
years ended December 31, 2021 and 2020, are as follows:

Sales and Purchases and
others others1
Significant influence

over the Group Hanjin KAL Co., Ltd. 1,273 28,789
Associate Korean Air C&D 12,470 54,272
Hanjin Int’l Japan Co., Ltd. 96 7,487
Other related parties Jin Air Co., Ltd. 108,249 2,972
KAL Hotel Network Co., Ltd. 15,042 5,837
Topas Co., Ltd. 7,940 41
Jungseok Enterprise Co., Ltd. 660 1,025
Hanjin Travel Service Co., Ltd. 1,265 102
Others2 14 187
Affiliated companies of Hanjin Transportation Co., Ltd. 13,539 21,849
a conglomerate and Jungseok-Inha School’s Foundation 7,630 5,995
others Others3 3,429 8,793
1
It includes interest expense of 408 million for corporate bonds paid to related parties.
2
It includes transaction with Jedong Leisure Co., Ltd., excluded from related parties due to disposal of its
share.
3
Transactions between companies, except for Hanjin Transportation Co., Ltd. and Jungseok-Inha School’
s Foundation, classified as ‘Affiliated companies of a conglomerate and others’ in (1), are included.

Sales and Purchases and
others others1
Significant influence over

the Group Hanjin KAL Co., Ltd. 1,341 24,611
Associate Korean Air C&D 296 2,127
Hanjin Travel Service Co., Ltd. 4,374 575
Others 17 696
Affiliated companies of Hanjin Transportation Co., Ltd. 12,636 27,982
a conglomerate and Jungseok-Inha School’s Foundation 9,082 11,988
others Others2 1,335 3,757
1
It includes dividends of 0.2 million paid to related parties and interest expense of 487 million for
corporate bonds paid to related parties.
2
Transactions between companies, except for Hanjin Transportation Co., Ltd. and Jungseok-Inha School’
s Foundation, classified as ‘Affiliated companies of a conglomerate and others’ in (1), are included.
- 98 -
(3) Significant receivables from and payables to the related parties (except for loan, borrowing and
related interest income/expense transactions) as of December 31, 2021 and 2020, are as follows:

Trade and other Trade and other
receivables payables1

Associate Korean Air C&D 3,248 5,283
Hanjin Travel Service Co., Ltd. 346 1,781
Others 4 95
Affiliated companies of a Hanjin Transportation Co., Ltd. 1,587 3,799
conglomerate and others Jungseok-Inha School’s Foundation 2,586 28
Others2 8,645 356
1
It includes the Parent Company’s corporate bonds of 8,012 million held by the related parties.
2
Receivables from and payables to the related parties between companies, excluding Hanjin Transportation
Co., Ltd. and Jungseok-Inha School’s Foundation, classified as ‘Affiliated companies of a conglomerate and
others’ in (1), are included.

Trade and other Trade and other
receivables payables1

Associate Korean Air C&D 291 2,127
Hanjin Int’l Japan Co., Ltd. - 2,280
KAL Hotel Network Co., Ltd. 1,340 902
Topas Co., Ltd. 640 2,524
Hanjin Travel Service Co., Ltd. 108 92
Others 3 724
Affiliated companies of a

conglomerate and others Hanjin Transportation Co., Ltd. 2,422 3,847
Jungseok-Inha School’s Foundation 3,152 2,298
Others2 8,649 135
- 99 -
1
It includes the Parent Company’s corporate bonds of 9,710 million and KAL-25 ABS of 5,900 million
held by the related parties.
2
Receivables from and payables to the related parties between companies, excluding Hanjin Transportation
Co., Ltd. and Jungseok-Inha School’s Foundation, classified as ‘Affiliated companies of a conglomerate and
others’ in (1), are included.
(4) Lease payments for lease agreements with related parties for the years ended December 31, 2021 and
2020, and related lease liabilities and interest expenses recognized as of and for the years ended
December 31, 2021 and 2020, are as follows:

Interest
Lease payments expenses Lease liabilities
over the Group Hanjin KAL Co., Ltd. 4,399 40 148
Associate Korean Air C&D G 791 G 26 G 1,548
KAL Hotel Network

Other related parties Co., Ltd. 239 2 63
Jungseok Enterprise

Co., Ltd. 730 7 124
Affiliated companies Hanjin Transportation

of a conglomerate Co., Ltd. 60 1 185
and others Others1
1,050 148 4,152

Interest
Lease payments expenses Lease liabilities
over the Group Hanjin KAL Co., Ltd. 4,309 46 -
KAL Hotel Network

Other related parties Co., Ltd. 230 3 80
Jungseok Enterprise

Co., Ltd. 803 9 129
Affiliated companies Hanjin Transportation

of a conglomerate Co., Ltd. 1,408 49 38
and others Others1
1,269 185 5,818
1
Transactions between companies, excluding Hanjin Transportation Co., Ltd., classified as ‘Affiliated
companies of a conglomerate and others’ in (1), are included.
- 100 -
(5) Loan and borrowing transactions with related parties for the years ended December 31, 2021 and 2020,
are as follows:

won) 2021
Beginning Ending
Related party Accounts Currency balance Increase Decrease balance
Short-term
Hanjin KAL Co., Ltd.1
borrowings KRW 800,000 - (800,000) -
1
Interest expenses of short-term loans for the year ended December 31, 2021, are 7,153 million.

won) 2020
Beginning Ending
Related party Accounts Currency balance Increase Decrease balance
Short-term
Hanjin KAL Co., Ltd.1
borrowings KRW - 800,000 - 800,000
1
Interest expenses of short-term loans for the year ended December 31, 2020, are 2,821 million. The
Group recognized 2,821 million as accrued expenses as of December 31, 2020.
(6) The Group agreed with creditors on the self-rescue plan in connection with the receipt of emergency
funding from KDB, etc., for the year ended December 31, 2020, and Hanjin KAL Co., Ltd., a related
party, and the Parent Company’s chief executive officer (“CEO”) are committed to the implementation
of the self-rescue plan.
(In millions of
Korean won) 2021
Hanjin KAL Co., Ltd.

Issuance of share (Significant influence over Participation in paid-in
capital the Group) capital increase 863,682
(In millions of
Korean won) 2020
Hanjin KAL Co., Ltd.

Issuance of share (Significant influence over Participation in paid-in
capital the Group) capital increase 320,513
(7) The compensation paid or payable to key management for the years ended December 31, 2021 and 2020,
is as follows:
Wages and salaries 2,456 2,453

Retirement benefit costs 1,708 1,759
4,164 4,212
- 101 -
42. CASH FLOWS:
(1) The significant non-cash transactions from investing and financing activities that are not included in the
consolidated statements of cash flows for the years ended December 31, 2021 and 2020, are as follows:
Transfer of long-term borrowings to current portion of long-

term borrowings 2,450,531 1,934,768
Transfer of debentures to current portion of debentures 1,244,877 894,500
Transfer of lease obligation to current portion of lease
obligation 1,370,840 1,440,055
Transfer of construction in progress to property, aircraft and
equipment 230,752 228,027
Transfer of right-of-use assets to lease receivables 164 76,615
Acquisition of right-of-use assets 211,858 41,938
Transfer of short-term borrowings to capital 746,175 -
(2) Changes in liabilities arising from financial activities for the years ended December 31, 2021 and 2020,
are as follows:

Cash flows Non-cash transactions
from Changes in
Beginning financing exchange Ending
balance activities rate New lease Others1 balance
Short-term borrowings 1,900,887 (215,605) 21,441 - (721,155) 985,568

Current portion of long-
term borrowings 2,559,590 (2,623,449) 52,470 - 3,000,419 2,989,030
Current portion of lease
liabilities 1,387,671 (1,419,966) 52,747 - 1,362,474 1,382,926
Long-term borrowings 1,770,833 297,419 63,789 - (1,212,837) 919,204
Debenture 1,244,414 1,016,423 21,675 - (1,224,281) 1,058,231
ABS loans 1,484,933 - 22,209 - (553,322) 953,820
Lease liabilities 5,189,532 - 321,083 - (1,292,525) 4,218,090
1
Others include reclassification of current portion, occurrence and payments of interest expenses and others.
- 102 -

Cash flows Non-cash transactions
from Changes in
Beginning financing exchange Ending
balance activities rate New lease Others1 balance
Short-term borrowings 762,860 1,029,866 (23,108) - 131,269 1,900,887

Current portion of long-
term borrowings 2,985,372 (2,716,123) 2,425 - 2,287,916 2,559,590
Current portion of lease
liabilities 1,521,201 (1,543,002) 56,446 - 1,353,026 1,387,671
Long-term borrowings 1,832,845 829,590 (62,510) - (829,092) 1,770,833
Debenture 2,017,029 159,362 (46,948) - (885,029) 1,244,414
ABS loans 1,110,780 1,262,660 (66,886) - (821,621) 1,484,933
Lease liabilities 6,793,647 - (314,886) 27,927 (1,317,156) 5,189,532
1
Others include reclassification of current portion, amortization of present value of discounts and others.
43. COMMITMENTS AND CONTINGENCIES:
(1) The Group has been provided the following guarantees by others as of December 31, 2021:
(In millions of Korean won and in thousands of US dollars) December 31, 2021
Seoul Guarantee Insurance Co., Ltd. 22,668

Korea Defense Guarantee Cooperative 813,053
SHINHAN BANK AMERICA and others 16,200
Engineering Financial Cooperative 43,241
Korea Software Financial Cooperative 10,351
Information & Communication Financial Cooperative 103
As of December 31, 2021, the Group has been provided with payment guarantee (limit: $2,400 thousand) for
the purchase of facilities by Hana Bank. Also, the Group has been provided with payment guarantee
amounting to 1,793 million by Shinhan Bank in relation to the rental for C cargo service facilities located
in cargo terminal in Incheon.
(2) The Group provides guarantee of 173 million in relation to the personal loan of flight training center
trainees and a joint guarantee of 113,289 million in relation to the loans for the acquisition of
employee stock ownership.
- 103 -
(3) Credit line and details of credit agreements as of December 31, 2021, are as follows:
(In millions of Korean won and in thousands of US dollars)

Description Financial institutions December 31, 2021
Credit line agreement Bank of China and others $ 105,000

Letters of credit Hana Bank $ 3,400
Ordinary loan Shinhan Bank and others 20,000
Line of credit NongHyup Bank 20,000
$ 108,400
40,000
(4) Promissory note pledged as collateral
As of December 31, 2021, the Group has provided one outstanding blank promissory note pledged as
collateral to the Korea Defense Industry Association.
(5) As of December 31, 2021, the Parent Company provides payment guarantee of $343,800 thousand to
THE BANK OF NEW YORK MELLON TRUST COMPANY on behalf of Hanjin Int'l Corp., which is a
subsidiary of the Parent Company.
(6) Pending litigations and others
As of December 31, 2021, various claims, lawsuits and complaints arising from airline service operations
are pending against the Group and the ultimate outcome of these cases is unpredictable. Management
believes that the ultimate outcome of these cases will not have any material adverse effect on the financial
performance and position of the Group. In addition, the Group was noticed a penalty related to cargo flights
from the Russian Customs and is proceeding with appeal against the decision. The result is unpredictable
until the final judgement comes up.
(7) New aircraft introduction plan
The Group has entered into various contracts with aircraft manufacturers, such as the Boeing Company, to
purchase aircraft. The amount of such contracts is approximately $6,513 million as of December 31, 2021.
(8) Passenger terminal joint use agreement
The Group and four other airlines, including Air France, entered into a passenger terminal joint use
agreement with the JFK Airport in New York and provides mutual payment guarantee in respect to the
terminal usage fees that each airline needs to pay.
- 104 -
(9) Financial structure improvement agreement
The Parent Company is a major entity of Hanjin conglomerate Group (the “Hanjin Group”), and the Hanjin
Group has been selected and included in the main debtor group of 2020 by Finance Supervisory Service. In
May 2009, the Hanjin Group entered into financial structure improvement agreement with main creditor
bank of the Hanjin Group, KDB, as a main debtor. The Hanjin Group entities extended the financial
structure improvement arrangement and reformed its self-helping plan (the “Plan”) on December 3, 2020.
The Parent Company has accomplished the Plan exceeding 1,666 billion (implemented amount: G5,400
billion) over the Plan (3,734 billion) as of December 31, 2021, through share offering, disposal of
business unit, aged aircraft and real estates and share offering. In case the Hanjin Group does not meet the
Plan, the creditor is able to demand the correction and implementation of the revised Plan over a certain
period of time. The Hanjin Group and the Parent Company will make every effort to carry out the
arrangement in a faithful manner going forward.
(10) Major agreements entered into by the subsidiaries are as follows:
1) The Group agreed with creditors on the self-rescue plan in connection with the receipt of emergency
funding from KDB, etc., for the year ended December 31, 2020, and Hanjin KAL Co., Ltd., a related
party, and the Parent Company’s CEO are committed to the implementation of the self-rescue plan.
2) A subsidiary of the Parent Company, WLD, received 15.6 billion from the Incheon Free Economic
Zone Authority, as part of its ongoing Wang San Marina Business fees, free of charge under the
agreement signed on March 30, 2011. Although the dispute with Incheon city has been resolved through
an interpretation of the Ministry of Government Legislation, there was a lawsuit that started from
citizens against the Incheon Metropolitan Market claiming for the return of the funds. On June 25, 2020,
the Supreme Court of Korea overturned a lower court’s decision, and remanded the case back to the
Seoul High Court on the grounds that there was no reason to disallow the filing of a resident's suit due to
the decision to dismiss the request for a resident audit of the Ministry of Culture, Sports and Tourism.
This resident's suit remanded after reversal was declared on December 1, 2021, that appeals of plaintiffs
and the claims extended after remand are all dismissed (Incheon Metropolitan Government’ win), and
appeals of plaintiffs against this result are filed again. As such, impact of the dispute on the Group’s
consolidated financial statements cannot be reasonably estimated.
Also, the Parent Company made a commitment with the KDB to participate in paid-in capital increase
of WLD, if WLD is short of financial resources to repay the borrowings provided by the KDB. The
outstanding balance of borrowings is 47,348 million as of December 31, 2021. The deposits, land and
buildings acquired under the purpose of Wang San Marina Business are pledged to KDB as collateral.
As of December 31, 2021, WLD signed a memorandum of understanding to provide direct construction
expenses equivalent to the cost of construction of public sewage facility scheduled to be conducted by
the Incheon Metropolitan Government in relation to hotels and various commercial facilities within the
Wang San Marina Business. The agreement with Incheon Metropolitan Government for the term’s
extension and some contents’ change of this memorandum of understanding was made in the latter half
of 2021; however, no specific agreement has been signed as of December 31, 2021.
- 105 -
44. DISCONTINUED OPERATIONS:
In order to improve the business structure and increase capital, the Parent Company transferred its in-flight
meal business and in-flight duty-free sales business to Korean Air C&D on December 17, 2020. A subsidiary
of the Parent Company, Korean Airports Co., Ltd. decided to discontinue mining business according to
resolution of a board of directors on October 20, 2020, and disposed real estate and equipment related to
mining business according to resolution of a board of directors for the year ended December 31, 2021.
The comparative consolidated financial statement of comprehensive income (loss) for the year ended
December 31, 2020, has been restated to disclose discontinued operations separated from continuing
operations.
(1) Details on income (losses) from discontinued operations for the years ended December 31, 2021 and
Profit from discontinued operations:

Revenue - 66,171
Expense - 73,300
Loss from discontinued operations before
income tax - (7,129)
Income tax expense (benefit) - (1,639)
Loss from discontinued operations after income
tax - (5,490)
Elimination of the effect from intragroup
transactions1 - (96,805)
Profit from discontinued operations - 593,438
1
Due to unrealized gains or losses from intragroup transactions, the gains on disposal of discontinued
operations were removed by the amount of stock acquisitions of Korean Air C&D and the gains or losses
from intragroup transactions related to Korean Airports Co., Ltd. were removed.
- 106 -
(2) Cash flows from discontinued operations for the years ended December 31, 2021 and 2020, are as
follows:
Cash flows from operating activities - (15,663)

Cash flows from investing activities - 844,951
Cash flows from financing activities - (4,764)
Net cash flows from discontinued operations - 824,524
45. ASSETS AND LIABILITIES HELD FOR SALE, AND EQUITY DIRECTLY ASSOCIATED
WITH ASSETS CLASSIFIED AS HELD FOR SALE:
The Group decided to sell its subsidiary, WLD, Ltd. Related assets and liabilities are presented as held for
sale and the details are as follows:

Cash and cash equivalents 3,255
Inventory 29
Trade receivables and other receivables 29
Other current assets 126
Long-term financial products 515
Property, plant and equipment 133,768
Current tax assets 2
137,724
Liabilities held for sale:

Trade and other payables 453
Current growth period liabilities 5,918
Current lease liabilities 6
Other liabilities 568
Long-term borrowings 41,429
Retirement benefit liabilities 214
Non-current lease liabilities 15
Other non-current liabilities 52
48,655
- 107 -
As of December 31, 2021 and 2020, assets held for sale, liabilities and equity directly associated with assets
classified as held for sale are as follows:

1,2
Land 400,628 405,921
1,2
Building - 2,716
Other tangible assets2 - 1,924
Non-current assets - -
400,628 410,561
Liabilities held for sale:

Current liabilities - -
Non-current liabilities - -
- -
Equity directly associated with assets

classified as held for sale:
Gain on land revaluation 61,966 64,139
61,966 64,139
1
The Group disposed some of lands and buildings classified as assets held for sale, and recognized gain on
disposal of assets held for sale of 23,667 million.
2
9,113 million of other tangible assets classified to assets held for sale as of December 31, 2020 is
reclassified to property, aircraft and equipment for the year ended December 31, 2021.
- 108 -
46. INCREASE IN UNCERTAINTY DUE TO THE IMPACT OF COVID-19 AND THE GROUP'S
COUNTERMEASURE:
Due to the prolonged COVID-19, the air transportation business of the Group is still under various control
policies, including restriction for movement between countries, and these all circumstances make uncertainty
on the business environment continue. Despite the expectation of recovery in travel demand according to the
development of vaccines and expanded inoculation, the passenger demand is recovering slowly and below
pre-pandemic level. For above effects, the Group expects that there is still a material uncertainty related to
future profit and cash flow.
Meanwhile, the Group continues to make efforts to minimize the risk of business environment from COVID-
19 impact and to secure liquidity, including the following:
- The Group has been implementing paid leave on a rotating basis for the year ended December 31, 2021, and
is receiving the government's employee retention subsidies.
- The Group completed a capital increase of ୸3,316 billion and issuing corporate bond of ୸1,020 billion in
2021. In addition, the Group made sale and trade contracts of the property in Songhyeon-dong with Seoul
Metropolitan Government and Korea Land & Housing Corporation in December 2021 and received ୸474
billion, the 85% of sales price. The rest 15% of sales price, ୸84 billion, is going to be received when the
transfer in ownership is completed at the end of June 2022. In addition, the Group is actively seeking to
secure liquidity, such as the sale of shares of WLD, and refinancing expired debentures in 2022.
- The Group plans to do its best to secure additional liquidity by reducing investment plans; reviewing cost
reductions; extending the maturity of borrowings; financing from capital market; financing policy funds, etc.
47. EVENTS AFTER THE REPORTING PERIOD:
(1) The Parent Company has issued the debentures in JPY amounting to JPY 30,000 million guaranteed by
The Export-Import Bank of Korea after the reporting period.
(2) The Parent Company has issued series 98-1st, 98-2nd and 98-3rd bearer non-guaranteed debentures
amounting to ୸300,000 million after the reporting period.
(3) On February 17, 2022, the Parent Company has made additional investment amounting to ୸9,200
million to WLD, a subsidiary.
- 109 -

2021 Consolidated

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2021 Consolidated

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KOREAN AIR LINES CO., LTD.

AND ITS SUBSIDIARIES

ATTACHMENT: INDEPENDENT AUDITORS’ REPORT

KOREAN AIR LINES CO., LTD.

Tel: +82 (2) 6676 1000

INDEPENDENT AUDITORS’ REPORT

To the Shareholders and the Board of Directors of

Report on the Audited Consolidated Financial Statements

Basis for Audit Opinion

- The operating environment uncertainty caused by COVID-19

- Recognition of deferred revenue

March 11, 2022

CONSOLIDATED FINANCIAL STATEMENTS AS OF AND

Woo, Kee Hong

Total assets ୸ 26,671,903 ୸ 25,190,061 $ 22,498,442 $ 21,248,470

Total liabilities 19,806,214 21,878,337 16,707,054 18,454,945

Total liabilities and equity ୸ 26,671,903 ୸ 25,190,061 $ 22,498,442 $ 21,248,470

Sales 4,33,41 ୸ 9,016,825 ୸ 7,610,531 $ 7,605,926 $ 6,419,680

Cost of sales 38,41 6,912,047 6,850,104 5,830,491 5,778,240

Selling and administrative expenses 34,38,41 686,809 653,103 579,341 550,909

Financial income 35 361,334 84,176 304,795 71,005

Profit (loss) from continuing operations 578,782 (823,457) 488,219 (694,607)

Profit from discontinued operations 44 - 593,438 - 500,580

Other comprehensive income (loss)

Other comprehensive income (loss) for the

Profit (loss) for the year attributable to:

Earnings (losses) attributes to common shares 39

Translation into US dollars (Note 2)

Interest received 66,441 47,797 56,045 40,318

Cash flows from financing activities

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Consolidated Financial Statement Presentation

2.1 Changes in Accounting Policies and Disclosures

• K-IFRS 1001 Presentation of Financial Statements - Classification of Liabilities as Current or Non-

• K-IFRS 1103 Business Combination - Reference to the Conceptual Framework (Amendments)

• Annual Improvements to K-IFRSs 2018 - 2020

(a) K-IFRS 1101 First-Time Adoption of K-IFRS (Amendment)

(b) K-IFRS 1109 Financial Instruments (Amendment)

(c) K-IFRS 1116 Leases (Amendment)

(d) K-IFRS 1041 Agriculture (Amendment)

2.2 Investments in Subsidiaries, Jointly Controlled Entities and Associates

If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture

2.3 Interests in Joint Operations

x its assets, including its share of any assets held jointly;

2.4 Non-Current Assets Held for Sale

2.5 Revenue Recognition

1) Sales of goods and rendering of services

3) Customer royalty program

2.6.1 The Group as Lessor

2.6.2 The Group as Lessee

To determine the incremental borrowing rate, the Group:

Right-of-use assets are measured at cost comprising the following:

x The amount of the initial measurement of lease liability;

2.7 Foreign Currencies

2.8 Borrowing Costs

2.9 Government Grants

2.10 Employee Benefits

1) Short-term employee benefits

2) Other long-term employee benefits

3) Current and deferred taxes for the year

2.12 Property, Aircraft and Equipment

Category Useful lives (years)

Buildings and structures 40

Total sales G 8,732,860 366,669 94,286 147,431 (324,421) 9,016,825

Total sales 7,144,614 564,701 74,029 150,603 (323,416) 7,610,531

Total sales 1,198,800 8,052,151 9,250,951 82,477 7,818 (324,421) 9,016,825

Total sales 1,204,254 6,668,554 7,872,808 61,131 8 (323,416) 7,610,531

Cash on hand 5,049 61

Trade receivables 960,997 39 676,496 16

Trade receivables 957,244 2,531 998 263 961,036

Trade receivables 669,535 6,324 653 - 676,512

Beginning balance 1,397 - - 1,397

Beginning balance 1,283 - - 1,283