| Leases |
34. Leases
The Company leases buildings and vehicles. The leases typically run for a period of 1 ~ 5 years, with an option to renew or terminate the lease after that date. The Company also leases water purifiers, copy machines, and others with contract terms of one to three years. These leases are short-term and/or leases of low-value items. The Company has elected not to recognize right-of-use assets and lease liabilities for these leases. Information about leases for which the Company is a lessee is presented below.
Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property and equipment.
Details of right-of-use assets recognized in the consolidated statements of financial position as of December 31, 2025 and 2024 are as follows:
| Schedule of right-of-use assets |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Right-of-use assets (Acquisition price) |
|
|
|
|
|
|
|
|
|
|
| Buildings |
|
₩ |
|
|
8,627,880 |
|
|
|
13,168,074 |
|
| Vehicles |
|
|
|
|
643,839 |
|
|
|
548,856 |
|
| Total |
|
₩ |
|
|
9,271,719 |
|
|
|
13,716,930 |
|
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Right-of-use assets (Accumulated depreciation) |
|
|
|
|
|
|
|
|
|
|
| Buildings |
|
₩ |
|
|
(3,904,631 |
) |
|
|
(4,895,688 |
) |
| Vehicles |
|
|
|
|
(314,908 |
) |
|
|
(169,795 |
) |
| Total |
|
₩ |
|
|
(4,219,539 |
) |
|
|
(5,065,483 |
) |
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Right-of-use assets (Accumulated impairment loss) |
|
|
|
|
|
|
|
|
|
|
| Buildings |
|
₩ |
|
|
(369,280 |
) |
|
|
(216,464 |
) |
| Total |
|
₩ |
|
|
(369,280 |
) |
|
|
(216,464 |
) |
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Right-of-use assets (Net book value) |
|
|
|
|
|
|
|
|
|
|
| Buildings |
|
₩ |
|
|
4,353,969 |
|
|
|
8,055,922 |
|
| Vehicles |
|
|
|
|
328,931 |
|
|
|
379,061 |
|
| Total |
|
₩ |
|
|
4,682,900 |
|
|
|
8,434,983 |
|
Changes in right-of-use assets for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of right-of-use assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
| |
|
|
|
Building |
|
|
Vehicles |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Beginning balance |
|
₩ |
|
|
8,055,922 |
|
|
|
379,061 |
|
|
|
8,434,983 |
|
| Changes in scope of consolidation |
|
|
|
|
444,530 |
|
|
|
84,364 |
|
|
|
528,894 |
|
| Depreciation |
|
|
|
|
(1,487,781 |
) |
|
|
(135,951 |
) |
|
|
(1,623,732 |
) |
| Acquisitions |
|
|
|
|
450,810 |
|
|
|
1,802 |
|
|
|
452,612 |
|
| Transfer |
|
|
|
|
(1,903,601 |
) |
|
|
(49,493 |
) |
|
|
(1,953,094 |
) |
| Impairment loss |
|
|
|
|
(152,816 |
) |
|
|
- |
|
|
|
(152,816 |
) |
| Lease termination |
|
|
|
|
(1,193,957 |
) |
|
|
(694 |
) |
|
|
(1,194,651 |
) |
| Lease modification |
|
|
|
|
140,862 |
|
|
|
49,843 |
|
|
|
190,705 |
|
| Ending balance |
|
₩ |
|
|
4,353,969 |
|
|
|
328,931 |
|
|
|
4,682,900 |
|
| |
|
|
|
2024 |
|
| |
|
|
|
Building |
|
|
Vehicles |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Beginning balance |
|
₩ |
|
|
9,268,936 |
|
|
|
156,885 |
|
|
|
9,425,821 |
|
| Depreciation |
|
|
|
|
(1,307,211 |
) |
|
|
(96,847 |
) |
|
|
(1,404,058 |
) |
| Acquisitions |
|
|
|
|
56,020 |
|
|
|
363,914 |
|
|
|
419,934 |
|
| Transfer |
|
|
|
|
2,385,812 |
|
|
|
- |
|
|
|
2,385,812 |
|
| Impairment loss |
|
|
|
|
(216,464 |
) |
|
|
- |
|
|
|
(216,464 |
) |
| Lease termination |
|
|
|
|
(527,731 |
) |
|
|
(44,891 |
) |
|
|
(572,622 |
) |
| Lease modification |
|
|
|
|
(1,603,440 |
) |
|
|
- |
|
|
|
(1,603,440 |
) |
| Ending balance |
|
₩ |
|
|
8,055,922 |
|
|
|
379,061 |
|
|
|
8,434,983 |
|
| |
|
|
|
2023 |
|
| |
|
|
|
Building |
|
|
Vehicles |
|
|
Total |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Beginning balance |
|
₩ |
|
|
14,941,069 |
|
|
|
148,502 |
|
|
|
15,089,571 |
|
| Depreciation |
|
|
|
|
(1,627,945 |
) |
|
|
(76,136 |
) |
|
|
(1,704,081 |
) |
| Acquisitions |
|
|
|
|
489,855 |
|
|
|
88,554 |
|
|
|
578,409 |
|
| Transfer |
|
|
|
|
(3,483,371 |
) |
|
|
(1 |
) |
|
|
(3,483,372 |
) |
| Lease termination |
|
|
|
|
(1,009,424 |
) |
|
|
- |
|
|
|
(1,009,424 |
) |
| Lease modification |
|
|
|
|
(41,248 |
) |
|
|
(4,034 |
) |
|
|
(45,282 |
) |
| Ending balance |
|
₩ |
|
|
9,268,936 |
|
|
|
156,885 |
|
|
|
9,425,821 |
|
| |
ii. |
Amounts recognized in profit or loss |
Amounts recognized in profit or loss for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of lease-related expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Interest expense from lease liabilities (included in finance cost) |
|
₩ |
|
|
543,208 |
|
|
|
851,543 |
|
|
|
1,047,738 |
|
| Expense from short-term leases |
|
|
|
|
2,330,519 |
|
|
|
17,763 |
|
|
|
6,268 |
|
| Expense from leases of low-value assets excluding short-term leases |
|
|
|
|
19,204 |
|
|
|
16,083 |
|
|
|
16,889 |
|
| Gains on disposal of right-of-use assets |
|
|
|
|
461,212 |
|
|
|
131,193 |
|
|
|
1,042,833 |
|
| Expense from variable lease payments not included in the measurement of lease liabilities |
|
|
|
|
229,313 |
|
|
|
398,671 |
|
|
|
853,983 |
|
| Impairment loss on right-of-use asset |
|
|
|
|
152,816 |
|
|
|
964,626 |
|
|
|
2,246 |
|
| |
iii. |
Amounts recognized in statement of cash flows |
Amounts recognized in statements of cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of amounts recognized in statements of cash flows |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Total cash outflows of leases |
|
₩ |
|
|
5,177,970 |
|
|
|
2,947,475 |
|
|
|
3,536,265 |
|
Some property leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses at the lease commencement date whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there are a significant event or significant changes in circumstances within its control.
| |
v. |
Variable lease payments |
The Company has entered into a contract to pay revenue-based rent payment for several lease agreements. If the revenue of the store that entered into the contract increase, the rent to be paid may proportionally increase. According to the contract, it is expected that 9 to 18% of sales will be paid.
The Company leases out its investment property consisting of its leased property.
The Company has classified these leases as operating leases because they do not transfer substantially all the risk and rewards incidental to the ownership of the assets. Note 10 sets out information about the operating leases of investment property.
Rental income recognized by the Company during the year ended December 31, 2025 was Korean Won 472,235 thousand (2024: Korean Won 808,123 thousand).
Maturity analysis of lease payments, showing the undiscounted lease payments to be received after December 31, 2025 and 2024 as follows:
| Schedule
of maturity analysis of lease payments |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Less than 1 year |
|
₩ |
|
|
737,004 |
|
|
|
59,315 |
|
| 1 ~ 2 years |
|
|
|
|
441,324 |
|
|
|
- |
|
| Total |
|
₩ |
|
|
1,178,328 |
|
|
|
59,315 |
|
|