Annual Report
I. OUTLINE OF THE COMPANY
1. Purpose of the Company
Purpose
Remark
1. General Travel Business(Travel Agency)
2. Ticketing and Sales of Airline and Boat
3. Souvenir Sales
4. Issuing of Selling Offers
5. Real Estate Dealing and Lease
6. Optional Communication Business
7. Computer Programming and Supply
8. Telemarketing Business
9. Printing and Publishing Business
10. Issuing of Periodicals
11. Operating School to Train Travel Experts
12. Transportation Business(Chartered Buses)
13. Internet Business
(Install and Provide Contents, Internet Marketing)
14. E-commerce and Information Processing
15. Advertisement (Internet and Outdoor Advertisement)
16. Information and communication Related Business
17. Web Hosting and Homepage Establishment
18. Warehousing
19. Tourists Hotel & Lodging business
20. Operation and management of Tourists Hotels & Lodging
and other incidental facilities
21. Tourists Hotels & Lodging Management Business
22. Investment, Development, Operation and Asset Management
of the Domestic and Overseas Real Estate
23. Real Estate Agent Business
24. Management of Intellectual Property Rights and License
Business (Brand, Trademark Rights)
25. Intangible Assets Sales and Service (Knowledge, Information)
26. Production and Distribution
(Movies, Broadcasting, Videos and Other Cultural Products)
27. Production and Distribution of Digital Contents
28. Operating Performance Facilities
29. Planning Performance
30. Character business
31. Exhibition and Event Agency
32. Internet Broadcasting
33. Tourism Development and Incidental Business
(Marketing Counsel, Planning and Consulting)
34. Education service
35. Operation of Lifelong E-learning Education Facilities
36. Gift Certificate Sales
37. Wedding Consulting
38. Amusement Park Operation
39. Comprehensive Leisure Facilities and Operation Management
40. Tourist Attraction Development Business
41. Comprehensive Recreation Business
42. International Conference Planning Business
43. Camping Car Business
44. Bonded Goods and Tourism Product Sales Business
45. Accommodation Business
46. Accommodation reservation Service
47. Web Portal and Internet Information Service
48. Franchise Business
49. Restaurant Business
50. Shopping Center Leasing and Sublease Business
51. Ticket sales related to Culture, Arts and Sports Events
52. Database Development and Sales Related to Culture, Arts and
Sports
Purpose
Remark
53. Investment of Cultural Projects
(Performances and Film Production)
54. Organization of Events and Sponsors
55. Importation and Agency Business of Performance Publication
Rights
56. Brokerage Agency Business for Copyrights and Neighboring
Copyrights of Performance
57. Membership Sales and Brokerage Arrangements
58. Overseas Studies Agency Business
59. Lifelong Education Facilities Operating
60. Financial Loan and Other Financial Service Business
61. Electronic Financial Business
62. Planning and Promotion of Performance, Concert, Exhibition
63. Credit Card Business
64. Real Estate Development Business
65. Insurance Agent Business
66. All Other Incidental Businesses
2. Important Business
General Travel Business(Travel Agency)
3. History of the Company
A. Changes after the establishment
Date
Important Changes
Oct. 25, 1993
Established Kookjin Travel Co., Ltd. (Capital: 350 million won)
55-4 Seosomun-dong, Jung-gu, Seoul
Dec. 01, 1995
Set the company policy in ‘comprehensive wholesales’ and launched ‘Hana Tour’, independent
package brand, and commenced the agency sales
Nov. 28, 2000
Listed on KOSDAQ (commenced trading)
Nov. 10, 2006
Listed on LSE(London Stock Exchange)
Nov. 01, 2011
Listed on KOSPI
Jan. 01, 2012
CEO changed - SangHwan Park and HuynSyuk Choi
Mar. 25, 2016
CEO changed - SangHwan Park and JinKook Kim
Mar. 26, 2020
CEO changed - JinKook Kim and MiSun Song
Mar. 25, 2022
CEO changed - MiSun Song and KyungKen Yuk
Dec. 31, 2022
CEO changed - MiSun Song
B. Change of trade name
Date
Changes
Mar. 6, 1996
Changed the name from Kookjin Travel Co., Ltd. to Hana Tour Co., Ltd.
** Purpose is to unify the brand name and company image
C. Change of location for head office
Date
Location
Oct. 25, 1993
55-4 Seosomun-dong, Jung-gu, Seoul
Mar. 22, 1996
10F Inju Building, Tour cost fees-1 Seorin-dong, Jongro-gu, Seoul
Oct. 01, 1997
11F Hanmi Building, 1 Gonpyeong-dong, Jongro-gu, Seoul
Jun. 15, 2005
1 Gongpyeong-dong, Jongro-gu, Seoul
Jul. 01. 2013
HanaTour Bldg. 41, Insadon 5-gil, Jongno-gu, Seoul
D. Merger, spin off (merger), comprehensive stock swap, transfer, important business
assignment and others
On June 29, 2022, the company issued 2,100,000 shares through rights offering.
4. Domestic Place of Business
Classification
Location
Main
Business
Head Office
General
Travel
Business
and
Ticketing
Busan Sales Office
7, Chungjang-daero 9beon-gil, Jung-gu, Busan, Republic of Korea
Airport Office
(Terminal1)
271, Gonghang-ro, Jung-gu, Incheon, Republic of Korea
Airport Office
(Commodity Support)
124, Yeongjong-daero, Jung-gu, Incheon, Republic of Korea
Daegu Sales Office
648, Gukchaebosang-ro, Jung-gu, Daegu, Republic of Korea
Daejeon Sales Office
69, Dunsanseo-ro, Seo-gu, Daejeon, Republic of Korea
Gwangju Sales Office
136, Geumnam-ro, Buk-gu, Gwangju, Republic of Korea
Gangneung Slaes Office
2141, Gyeonggang-ro, Gangneung-si, Gangwon-do, Republic of Korea
Chuncheon Slaes Office
110, Jungang-ro, Chuncheon-si, Gangwon-do, Republic of Korea
Wonju Sales Office
65, Neungnadong-gil, Wonju-si, Gangwon-do, Republic of Korea
Jeonju Sales Office
269, Hongsan-ro, Wansan-gu, Jeonju-si, Jeollabuk-do, Republic of Korea
Changwon
Sales Office
754, Changwon-daero, Seongsan-gu, Changwon-si, Gyeongsangnam-do,
Republic of Korea
Eulji-ro IT Center
343, Samil-daero, Jung-gu, Seoul, Republic of Korea
Travel Desk
51, Sogong-ro, Jung-gu, Seoul, Republic of Korea
5. Status of Employees (As of December 31, 2022)
(Unit: person)
Classification
Office & Operation
Men
579
Women
605
Total
1,184
6. Organization
II. INFORMATION ON SHARES
1. Total Number of Stocks, Etc.
A. Total number of stocks (As of December 31, 2022)
(Unit: share)
Classification
Types of stocks
Remark
Common stock
Total
I. Total number of stocks to be issued
20,000,000
20,000,000
-
II. Total number of stocks issued to this point
16,039,185
16,039,185
-
III. Total number of stocks reduced to this point
-
-
-
1. Reduction of capital
-
-
-
2. Retirement of shares
-
-
-
3. Repayment of redeemed stocks
-
-
-
4. Others
-
-
-
IV. Total number of stocks issued (II-III)
16,039,185
16,039,185
-
V. Treasury stocks
549,253
549,253
-
VI. Outstanding stocks (IV-V)
15,489,932
15,489,932
-
B. Change of capital
(1) Status of capital increase
(Unit: share, won)
Date of stock
issuance
Type of issuance
Contents of issued stocks
Types
Quantity
Par
value
Issuance
amount
per stock
Remark
Oct. 25, 1993
-
Common stock
35,000
10,000
10,000
Capital for
incorporation
Jun. 12, 1996
Capital increase with
consideration
(shareholder
allotment)
Common stock
21.500
10,000
10,000
-
Jul. 25, 1997
Capital increase with
consideration
(shareholder
allotment)
Common stock
35,840
10,000
10,000
-
Oct.01, 1997
-
Common stock
184,680
5,000
-
1 to 2 shares
Dec. 02, 1999
Capital increase with
consideration
(shareholder
allotment)
Common stock
115,320
5,000
5,000
-
Dec. 23, 1999
Capital increase with
consideration
(shareholder
allotment)
Common stock
60,000
5,000
10,000
-
May, 05, 2000
Stock Split
Common stock
3,600,000
500
-
1 to 10 shares
Nov. 16, 2000
Capital increase with
consideration
(shareholder
allotment)
Common stock
900,000
500
2,850
-
Aug. 26, 2003
Capital increase
without consideration
Common stock
3,764,034
500
-
-
Oct. 27,2004
Capital increase with
consideration
(shareholder
allotment)
Common stock
76,322
500
11,850
-
Oct. 27,2004
Bonus Issue
Common stock
1,977,029
500
-
-
Nov. 11, 2006
Capital increase
Common stock
1,161,000
500
55,711
DR
Feb. 28, 2020
Capital increase with
consideration (Third-
party allotment)
Common stock
2,323,000
500
55,500
-
Jun. 29, 2022
Capital increase with
consideration (Rights
offering)
Common stock
2,100,000
500
49,800
-
(2) Status of capital decrease
(Unit: share, won)
Date of
capital
reduction
Type
Purpose
Contents of reduced stocks
Types
Quantity
Face
value
per
stock
Amount of
acquisition per
stock
(for capital
decrease for
consideration)
Remark
-
-
-
-
-
-
-
-
C. Contents of scheduled change for capital
No applicable change
2. Matters on Dividends
A. Matters on dividend for three recent fiscal year
Classification
30
th
Term
29
th
Term
Face value per stock (won)
500
500
(Consolidated) Current net income (million won)
(66,774)
(43,987)
(Separated) Current net income (million won)
(74,617)
(38,741)
(Consolidated) Net income per share (won)
(4,618)
(3,285)
Total amount of cash dividend (million won)
-
-
Total amount of stock dividend (million won)
-
-
Dividend payout ratio (%)
-
-
Yield rate of cash dividend (%)
Common stock
-
-
Preferred stock
-
-
Yield rate of stock dividend (%)
Common stock
-
-
Preferred stock
-
-
Cash dividend per share (won)
Common stock
-
-
Preferred stock
-
-
Stock dividend per share
Common stock
-
-
Preferred stock
-
-
III. CONTENTS OF THE BUSINESS
1. Summary of the Business
In 2020, the COVID-19 pandemic posed unprecedented challenges, making the past three years exceptionally tough.
Hopes of its end in 2021 were dashed with the emergence of the Omicron variant in 2022, along with subvariants,
hindering the travel industry's recovery.
Fortunately, from the latter half of 2022, the global trend of decreasing COVID-19 cases led countries to ease entry
and exit restrictions. In September, the South Korean government's announcement of lifting pre-entry COVID-19 tests
and on-site quarantine measures marked a pivotal moment for the travel industry's recovery. Tourism to Japan
resumed in October, and with the declaration of the end of the endemic situation in major Southeast Asian countries,
the South Korean travel industry entered a full-fledged recovery.
By December 2022, outbound travelers had recovered to nearly 60% compared to December 2019, and our company
experienced a rapid increase in customers, reaching around 40% of the 2019 volume. In Q4 2022, we recorded the
highest sales since the pandemic, and operating losses hit a quarterly low. Annual figures for 2022 showed a 186%
increase in sales, with the lowest operating and net losses since the pandemic, raising optimism for future recovery.
The recovery trend is accelerating in 2023, with profitability achieved in January and February, marking the first
monthly surplus since the pandemic. Expectations for a surplus in Q1 are growing, and we anticipate achieving an
annual surplus for the first time since the pandemic.
This year is significant for HanaTour, not only for improved operating performance but also for showcasing tangible
results from efforts made during the COVID-19 period. Initiatives like 'HanaPack 2.0,' enhanced customer satisfaction,
products for FIT customers, and a revamped mobile app demonstrate our commitment to growth. Targeting both
traditional and FIT markets, we aim to create a new foundation for growth, leveraging our product development and
overseas network. We seek the support of our shareholders as HanaTour embarks on this transformative journey.
2. Market Share Rate
The market share rate of the travel business is classified based on the calculation in which the “Total Departures from
HANATOUR” is divided by the “Total Departures of Korea.” (Crews are excluded from the total departing persons)
The “Total Departure of Korea” is announced by Korea Tourism Organization (KNTO) and the “Total Departures from
HANATOUR” is the figure which we report to Korean Association of Travel Agents (KATA).
<Market share rate based on the number of people>
Year
2022
2021
2020
Total
Departures
from
HANATOUR
Total
Departures
of Korea
Total
Departures
from
HANATOUR
Total
Departures
of Korea
Total
Departures
from
HANATOUR
Total
Departures
of Korea
533,957
5,904,941
42,441
803,201
646,444
3,688,606
Share rate
9.04%
5.28%
17.53%
3. Characteristics of the market
There are three special characteristics that make travel industry distinctive.
First, Travel business has seasonality. The pricing and marketing strategies change in accordance to seasons. However,
due to 5-work-day policy and more maturing society and corporate cultures, the gap between the demands of seasons
is shrinking which demanding changes to the products and strategies of travel agents.
Second, travel industry has time limits and has no inventory. This is in-line with air transportation, and hotel business.
Products must be sold on each day, or the inventories will disappear automatically. Therefore, it is very important to
have marketing strategy and diversified portfolio of products in order to get rid of all the inventories that the company
possesses.
Third, travel industry is easy to copy. Therefore, the company needs to find new elements that would differentiate the
company among competitors.
Last, travel industry is volatile. Compared to other industries it is affected by political, diplomatic, various social issues,
economic issue, diseases, and other aspects as well.
4. New Business Development
Not Applicable.
Ⅳ. Status of the Parent Company and Affiliated Companies
1. Status of the parent company
Not applicable.
2. Status of affiliated companies
(Unit: Share, %)
Name of the Company
Business Contents
No. of Shares
Ownership Ratio (%)
Hanatour Business Service Inc.
Travel Business
400,000
100.00
Hana Tourist Inc.
Travel Business
906,981
30.23
Hanatour Jeju Service Inc.
Travel Business
618,830
77.35
Hanatour ITC Service Inc.
Travel Business
24,400,000
100.00
Tour Marketing Korea Service Inc.
Travel Business
140,000
70.00
Web Tour Service Inc.
Travel Business
8,777,380
76.99
Mark Hotel Co., Ltd.
Hotel Business
40,000,000
100.00
Hana Finance Service Inc.
Finance Service
3,400,000
100.00
SM duty free Co., Ltd.
Duty Free Business
12,325,387
90.13
Hanatour Europe Ltd.
Travel Business
4,200
70.00
Hanatour Japan Co., Ltd.
Travel Business
6,836,300
53.98
Hanatour CHINA
Travel Business
-
100.00
Hanatour HongKong Co., Ltd.
Travel Business
5,000,000
100.00
Beijing Hana Information Technology Co.,
Ltd.
Software Technical
Development
-
100.00
Hanatour Service (M) Sdn.Bhd.
Travel Business
1,500,000
100.00
HANATOUR EU GMBH
Travel Business
-
100.00
HANATOUR VIETNAM COMPANY
LIMITED
Travel Business
-
85.00
HANATOUR PHILIPPINES CORP.
Travel Business
1,267,980
97.54
3. Concurrent status of the executive management
Not applicable.
Ⅴ. SUMMARY OF FINANCIAL DATA
* We’ve applied K-IFRS 1115 form 2018 and rewrote 2017 and 2016 Financial Results using K-IFRS 1115
1. Financial results
(In thousand won, except per share amounts)
Classification
30
th
Term
29
th
Term
28
th
Term
Sales
66,269,096
10,781,802
73,947,230
Operating Expenses
156,798,748
108,327,485
149,962,759
Operating Income
(90,529,652)
(97,545,683)
(76,015,530)
Profit Before Tax
(77,690,960)
(43,530,465)
(131,191,120)
Income Tax Expense
(3,074,173)
(4,789,718)
(31,981,313)
Net Income
(74,616,787)
(38,740,747)
(99,209,807)
Net Income per Share(Won)
(5,160)
(2,893)
(7,619)
2. Financial position
(In thousand won)
Classification
30
th
Term
29
th
Term
28
th
Term
Current Assets
202,531,190
86,185,310
121,274,400
Non-Current Assets
115,786,404
128,627,359
226,035,622
Total Assets
318,317,593
214,812,670
347,310,022
Current Liabilities
162,469,875
92,071,844
95,992,675
Long-term Liabilities
5,864,863
2,199,736
92,035,510
Total Liabilities
168,334,738
94,271,580
188,028,185
Capital Stock
8,019,593
6,969,593
6,969,593
Other Paid-in Capital
119,473,582
16,465,030
186,465,030
Elements of Other Shareholder’s Equity
(9,097)
(9,097)
(9,097)
Retained Earnings
22,498,777
97,115,564
(34,143,689)
Total Shareholder’s Equity
149,982,855
120,541,089
159,281,837
Total Liabilities
and Shareholder’s Equity
318,317,593
214,812,670
347,310,022
Ⅵ. RISK FACTORS
Refer to III - 1. Summary of the Business
Ⅶ. MANAGEMENT
Full-time
/ Part-time
Name
Position
Assigned Task
Full-time
SangHwan Park
Chairman, Director
General Management
Full-time
HeeSeok Kweon
Senior Vice Chairman, Director
General Management
Full-time
MiSun Song
Chief Executive Officer and Director
General Management
Part-time
HyeLeon Yoo
Auditor, Outside Director
Outside Director
Part-time
InWhan Chang
Auditor, Outside Director
Outside Director
Part-time
MoonHyun Kim
Auditor, Outside Director
Outside Director
Part-time
SangMan Han
Auditor, Outside Director
Outside Director
Part-time
InJun Song
Non-Executive Director
Non-Executive Director
Full-time
/ Part-time
Name
Position
Assigned Task
Part-time
YoungHo Kim
Non-Executive Director
Non-Executive Director
Part-time
ChanWoo Park
Non-Executive Director
Non-Executive Director
Ⅷ. LIST OF MAJOR SHAREHOLDERS
Shareholder
Number of shares
Percentage
Harmonia 1 limited company
and 11 people with a special relationship
4,457,202
27.79%
HANATOUR INC.
549,253
3.42%
Ⅸ. CURRENT STATUS OF INVESTMENTS
1. Domestic
Name of the Company
Ownership Company
No. of Shares
Ownership
Ratio (%)
Hanatour Business Service Inc.
HANATOUR Service Inc.
400,000
100.00
Hana Tourist Inc.
HANATOUR Service Inc.
906,981
30.23
Hanatour Jeju Service Inc.
HANATOUR Service Inc.
618,830
77.35
Hanatour ITC Service Inc.
HANATOUR Service Inc.
24,400,000
100.00
Tour Marketing Korea Service Inc.
HANATOUR Service Inc.
140,000
70.00
OK Tour Service Inc.
HANATOUR Service Inc.
9,784
48.92
Web Tour Service Inc.
HANATOUR Service Inc.
8,777,380
76.99
Nextour Co., Ltd.
Web Tour Service Inc.
40,000
100.00
Gyoyugyeohaeng Co., Ltd
HANATOUR Service Inc.
398,000
19.90
Mark Hotel Co., Ltd.
HANATOUR Service Inc.
40,000,000
100.00
Hana Finance Service Inc.
HANATOUR Service Inc.
3,400,000
100.00
SM duty free Co., Ltd.
HANATOUR Service Inc.
12,325,387
90.13
Interpark Corp.
HANATOUR Service Inc.
60,876
0.50
K Culture Industry Co., Ltd.
HANATOUR Service Inc.
-
40.00
Hani Tour Inc.
HANATOUR Service Inc.
19,078
9.54
SAM Consulting Co.,Ltd.
HANATOUR Service Inc.
1,667
7.41
KC HOSPITALITY CO.,LTD
HANATOUR Service Inc.
57,600
10.00
KBSJ Tourism Venture Union
HANATOUR Service Inc.
-
9.26
P&I Cultural Innovation Investment Union
HANATOUR Service Inc.
-
9.26
Silla Animal Inc.
HANATOUR Service Inc.
11,310
11.87
Jeju Channel Inc.
Hanatour Jeju Service Inc.
50,000
8.06
Dream Co., Ltd.
HANATOUR Service Inc.
2,250
2.08
Hanatour Jeju Service Inc.
2,250
2.08
2. Overseas
Name of the Company
Ownership Company
Region
No. of
Shares
Ownership
Ratio (%)
Hanatour Europe Ltd.
HANATOUR Service Inc.
London
4,200
70.00
Hanatour Japan Co., Ltd.
HANATOUR Service Inc.
Japan
6,836,300
53.98
U.I Sightseeing Bus LLC
HANATOUR JAPAN CO., LTD
Japan
1,900
100.00
Hanatour CHINA
HANATOUR Service Inc.
China
-
100.00
Name of the Company
Ownership Company
Region
No. of
Shares
Ownership
Ratio (%)
Hanatour HongKong Co., Ltd.
HANATOUR Service Inc.
Hong Kong
5,000,000
100.00
Hanatour Europe S.R.L
HANATOUR Service Inc.
Italy
5,250
50.00
Allegrox TM Hotel
HANATOUR JAPAN CO., LTD
Japan
396
100.00
Beijing Hana Information Technology Co.,
Ltd.
HANATOUR Service Inc.
China
-
100.00
Hanatour Service (M) Sdn.Bhd.
HANATOUR Service Inc.
Malaysia
1,500,000
100.00
Hanatour Janpan System Vietnam
HANATOUR JAPN CO., LTD
Vietnam
-
100.00
HANATOUR EU GMBH
HANATOUR Service Inc.
Germany
-
100.00
HANATOUR VIETNAM COMPANY
LIMITED
HANATOUR Service Inc.
Vietnam
-
85.00
HANATOUR PHILIPPINES CORP.
HANATOUR Service Inc.
Philippines
1,267,980
97.54
Ⅹ. MAJOR CREDITORS
Not applicable.
XI. IMPORTANT EVENTS AFTER THE SETTLEMENT OF
ACCOUNTS PERIOD
(1) HANATOUR EU GMBH which is one of subsidiaries of the Group resolved to dissolve on January 18, 2023.
(2) Mark Hotel Co., Ltd. which is one of subsidiaries of the Group resolved to dissolve on January 12, 2023.
XII. OTHER IMPORTANT FACTS ABOUT THE BUSINESS
None.
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Financial Statements
For the year ended December 31, 2022
With the Independent Auditor’s Report
HANATOUR SERVICE INC.
AND ITS SUBSIDIARIES
Table of contents
Independent auditor’s report
Page
Consolidated financial statements
Consolidated statements of financial position
1
Consolidated statements of comprehensive income or loss
3
Consolidated statements of changes in equity
4
Consolidated statements of cash flows
5
Notes to the consolidated financial statements
8
Independent auditor’s report
(English translation of a report originally issued in Korean)
The Shareholders and Board of Directors
Hanatour Service Inc.
Opinion
We have audited the consolidated financial statements of Hanatour Service Inc. and its subsidiaries
(collectively referred to as the “Group”), which comprise the consolidated statement of financial position
as of December 31, 2022, and the consolidated statement of comprehensive income or loss,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then
ended, and the notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as of December 31, 2022, and its consolidated financial
performance and its consolidated cash flows for the year then ended, in accordance with International
Financial Reporting Standards (“IFRS”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (“ISA”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our report. We are independent of the Group in
accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics
for Professional Accountants (hereinafter referred to as “IESBA Code”) together with the ethical
requirements that are relevant to our audit of the consolidated financial statements in the Republic of
Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Emphasis of matter
Without qualifying our opinion, we draw attention to the following:
- Uncertainty of the Impact of COVID-19
As described in Note 3, the travel and hotel industries to which the Group belongs have uncertainties
related to the future revenues and cash flows due to the impact of large-scale reservation cancellations
and a decrease in new travel demand caused by the spread of COVID-19.
The areas primarily affected by COVID-19 include the occurrence of operating income, impairment
assessment of cash-generating units, and realizability of deferred tax assets. The Group has reasonably
estimated the impact of COVID-19 and prepared the consolidated financial statements for the year
Ernst & Young Han Young
Tel: +82 2 3787 6600
Fax: +82 2 783 5890
ey.com/kr
2-3F, 7-8F, Taeyoung Building, 111, Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea
A member firm of Ernst & Young Global Limited
ended December 31, 2022. However, the ultimate impact of the spread of COVID-19 on the Group's
consolidated financial position, consolidated financial performance, and consolidated cash flows is not
estimable as of December 31, 2022.
Key audit matter
A key audit matter is the matter that, in our professional judgment, was of most significance in our audit
of the consolidated financial statements of the current period. This matter was addressed in the context
of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on this matter.
- The assessment of the realizability of deferred tax assets of Hanatour Service Inc., the Parent
Company
As described in Note 32 to the consolidated financial statements, the Parent Company has recognized
deferred tax assets amounting to KRW 50,554 million, based on the expectation that there will be
sufficient taxable income in the future to utilize these assets.
The realizability assessment of deferred tax assets involves management's judgment, particularly in
estimating future taxable income and the timing of the utilization of tax loss carryforward. Due to the
high level of subjectivity involved in these estimates of future taxable income and realization timing of
temporary differences, we have identified the assessment of the realizability of deferred tax assets as a
key audit matter.
The primary audit procedures to address the key audit matter are as follows:
-
Evaluate the design and operating effectiveness of the Parent Company's internal controls related
to the realizability of deferred tax assets.
-
Conduct a review of tax adjustments and the appropriateness of income tax expenses by engaging
tax experts.
-
Conduct a review of the reliability of the underlying data used to estimate future taxable income.
-
Conduct a review of the timing of the realization of deductible temporary differences and tax loss
carryforward.
-
Recalculate the amount of deferred tax assets calculated by the Parent Company to verify its
accuracy.
Other matter
The consolidated financial statements of the Group for the year ended December 31, 2021 were audited
by KPMG Samjong Accounting Corp. who expressed an unqualified opinion thereon as of March 17,
2022.
A member firm of Ernst & Young Global Limited
Responsibilities of management and those charged with governance for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS, and for such internal control as management determines is
necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management 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.
Auditor’s responsibilities for the audit 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 auditor’s
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 ISA 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 ISA, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
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 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 the
override of internal control.
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.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of 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 auditor’s
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 auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
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.
A member firm of Ernst & Young Global Limited
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 remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to 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 auditor’s 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 auditor’s report is Yong Woo Lee.
August 19, 2024
This audit report is effective as of August 19, 2024, the independent auditor’s report date.
Accordingly, certain material subsequent events or circumstances may have occurred during the
period from the date of the independent auditor’s report to the time this report is used. Such events
and circumstances could significantly affect the accompanying consolidated financial statements and
may result in modifications to this report.
A member firm of Ernst & Young Global Limited
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated financial statements
For each of the two years in the period ended
December 31, 2022
“The accompanying consolidated financial statements, including all footnotes and disclosures, have been prepared
by, and are the responsibility of, the Group.”
Mi Sun Song
Chief Executive Officer
HANATOUR SERVICE INC.
1
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2022 and 2021
(In thousands of won)
Notes | 2022 | 2021 | ||
Assets | ||||
Cash and cash equivalents | 4,23,39 | W | ||
Short-term financial instruments | 23,35,39 | |||
Trade receivables | 5,23,34,39 | |||
Other receivables | 5,23,34,39 | |||
Finance lease receivables | 6,23,39 | |||
Inventories | 7 | |||
Advanced payments | 8 | |||
Other current assets | 8 | |||
Other financial assets | 16,23,34,39 | |||
Current tax assets | ||||
Total current assets | ||||
Non-current financial assets at FVPL | 9,23 | |||
Financial assets at FVOCI | 10,23 | |||
Investments in associates and joint ventures | 11,34 | |||
Long-term other receivables | 5,23,34,39 | |||
Investment property, net | 12,35 | |||
Property, plant and equipment, net | 13,35 | |||
Right-of-use assets | 15 | |||
Intangible assets | 14,35 | |||
Other financial assets | 16,23,34,35,39 | |||
Deferred tax assets | 32 | |||
Other non-current assets | 8 | |||
Total non-current assets | ||||
Total assets | 37 | W |
(continued)
2
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Financial Position, Continued
As of December 31, 2022 and 2021
(In thousands of won) | Notes | 2022 | 2021 | |
Liabilities | ||||
Trade payables | 23,34,39 | W | ||
Other payables | 18,23,34,39 | |||
Income tax payables | ||||
Deposits received for travel | ||||
Advances received | ||||
Short-term borrowings | 17,23,39 | |||
Current portion of long-term borrowings | 17,23,39 | |||
Finance lease liabilities | 19,23,39 | |||
Provisions | 20 | |||
Other financial liabilities | 18,23,39 | |||
Other current liabilities | 21 | |||
Total current liabilities | ||||
Long-term other payables | 18,23,39 | |||
Long-term borrowings | 17,23,39 | |||
Debentures | 17,23,39 | |||
Long-term provisions | 20 | |||
Long-term finance lease liabilities | 19,23,39 | |||
Provision for long-term employee benefits | 22 | |||
Other non-current liabilities | 21 | |||
Total non-current liabilities | ||||
Total liabilities | 37 | |||
Equity | ||||
Capital stock | 24 | |||
Other contributed capital | 24,27 | |||
Other components of equity | 25 | |||
Retained earnings (deficit) | 26 | ( | ||
Equity attributable to the owners of the Parent Company | ||||
Non-controlling interests | ( | ( | ||
Total equity | ||||
Total liabilities and equity | W | |||
| The accompanying notes are an integral part of the consolidated financial statements. |
3
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Comprehensive Income or Loss
For each of the two years in the period ended December 31, 2022
(In thousands of won, except earnings per share data) | Notes | 2022 | 2021 | |
Operating revenue | 28,34,37 | W | ||
Operating expense | 37 | |||
Bad debt expense | ( | |||
Other operating expense | 29,34 | |||
Operating income | 37 | ( | ( | |
Interest income by effective interest rate method | 30,31 | |||
Other financial income | 30,31 | |||
Financial expense | 30,31 | |||
Gain (Loss) from investment in associates and joint | 30 | ( | ||
ventures | ||||
Other income | 30,34 | |||
Other expense | 30,34 | |||
Other bad debt expense | ||||
Loss before income taxes | ( | ( | ||
Income tax benefit of continuing operations | 32 | ( | ( | |
Net loss | W | ( | ( | |
Loss from continuing operations | ( | ( | ||
Gain from discontinued operations | 40 | |||
Other comprehensive income after tax expense | ||||
Items that will never be reclassified to profit of loss: | ||||
Gain (Loss) on valuation financial assets at FVOCI | ( | |||
Items that are or may be reclassified subsequently | ||||
to profit of loss: | ||||
Gain on foreign operations translation, net | ||||
Total comprehensive loss | W | ( | ( | |
Net income (loss) attributable to: | ||||
Owners of the Parent Company | ( | ( | ||
Non-controlling interests | ( | |||
W | ( | ( | ||
Comprehensive income (loss) attributable to: | ||||
Owners of the Parent Company | ( | ( | ||
Non-controlling interests | ( | |||
W | ( | ( | ||
Earnings (losses) per share | 33 | |||
Basic earnings (losses) per share attributable to (in won) : | ( | ( | ||
Continuing operation (in won) | ( | ( | ||
Discontinued operation (in won) | ||||
Diluted earnings (losses) per share attributable to (in won) : | W | ( | ( | |
Continuing operation (in won) | ( | ( | ||
Discontinued operation (in won) |
The accompanying notes are an integral part of the consolidated financial statements.
4
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Changes in Equity
For each of the two years in the period ended December 31, 2022
Other | Other | Retained | Total | |||
Capital | contributed | components of | earnings | Non-controlling | shareholders’ | |
(In thousands of won) | Stock | capital | equity | (deficit) | interests | equity |
January 1, 2021 | W | ( | ( | |||
Net loss | ( | ( | ( | |||
Gain on foreign operations | ||||||
translation | ||||||
Gain on valuation of financial | ||||||
assets at FVOCI | ||||||
Loss on valuation of financial | ||||||
assets at FVOCI | ( | ( | ( | |||
Capital surplus transferred in | ( | |||||
Acquisition of treasury stock | ( | ( | ( | |||
Acquisition of investing stock | ||||||
Paid-in capital increase | ||||||
of Subsidiaries | ( | |||||
Changes in scope of consolidation | ( | ( | ( | |||
December 31, 2021 | W | ( | ||||
January 1, 2022 | W | ( | ||||
Net income (loss) | ( | ( | ||||
Gain on foreign operations | ||||||
translation | ||||||
Gain on valuation of financial | ||||||
assets at FVOCI | ||||||
Paid-in capital increase of the Parent Company | ||||||
Dividends of Subsidiaries | ( | ( | ||||
Changes in scope of consolidation | ( | |||||
December 31, 2022 | W | ( | ( |
The accompanying notes are an integral part of the consolidated financial statements.
5
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
For each of the two years in the period ended December 31, 2022
(In thousands of won)
Note | 2022 | 2021 | ||
Cash flows from operating activities | ||||
Net loss | W | ( | ( | |
Additions of expenses not involving cash outflows and others | 38 | |||
Deduction of income not involving cash inflows and others | 38 | ( | ( | |
Movements in operating assets and liabilities: | ||||
Increase in trade receivables | ( | ( | ||
Decrease in other receivables | ||||
Decrease (increase) in inventories | ( | |||
Increase in advanced payments | ( | ( | ||
Decrease (increase) in other current assets | ( | |||
Decrease (increase) in other non-current assets | ( | |||
Increase in trade payables | ||||
Increase (decrease) in other payables | ( | |||
Increase in deposits received for travel | ||||
Increase (decrease) in advances received | ( | |||
Increase (decrease) in other financial liabilities | ( | |||
Increase (decrease) in other current liabilities | ( | |||
Decrease in provisions | ( | ( | ||
Decrease in long-term other payables | ( | ( | ||
Decrease in long-term employee benefit | ( | ( | ||
( | ( | |||
Interest expense paid | ( | ( | ||
Interest income received | ||||
Income taxes paid | ( | ( | ||
Net cash used in operating activities | W | ( | ( | |
| (continued) |
6
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For each of the two years in the period ended December 31, 2022
(In thousands of won) | 2022 | 2021 | |
Cash flows from investing activities | |||
Cash inflows from investing activities: | |||
Decrease in short-term financial instruments | W | ||
Decrease in other receivables | |||
Disposal of financial assets at FVPL | |||
Disposal of investment in associates and joint venture | |||
Disposal of property, plant and equipment | |||
Disposal of intangible assets | |||
Decrease in finance lease receivables | |||
Decrease in other financial assets | |||
Government grants | |||
Disposal of assets held for sale | |||
Cash outflows for investing activities: | |||
Increase in short-term financial instruments | |||
Increase in other receivables | |||
Acquisition of financial assets at FVPL | |||
Acquisition of property, plant and equipment | |||
Acquisition of intangible assets | |||
Increase in other financial assets | |||
Net cash provided by (used in) investing activities | W | ( | |
| (continued) |
7
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For each of the two years in the period ended December 31, 2022
(In thousands of won) | Note | 2022 | 2021 | |
Cash flows from financing activities | ||||
Cash inflows from financing activities: | ||||
Proceeds from short-term borrowings | W | |||
Proceeds from long-term borrowings | ||||
Paid-in capital increase | ||||
Proceeds from leasehold deposits received | ||||
Cash outflows for financing activities: | ||||
Repayment of short-term borrowings | ||||
Repayment of current portion of long-term borrowings | ||||
Repayment of long-term borrowings | ||||
Repayment of finance lease liabilities | ||||
Payment of cost of stock issuing | ||||
Acquisition of treasury stocks | ||||
Payment of dividends | ||||
Payment of leasehold deposits received | ||||
Net cash provided by (used in) financing activities | 1,38 | ( | ||
Increase in cash due to changes in scope of consolidation | ||||
Net Increase (decrease) in cash and cash equivalents | ( | |||
Cash and cash equivalents at the beginning of the year | ||||
Effect of exchange rate change | ( | |||
Cash and cash equivalents at the end of the year | W |
The accompanying notes are an integral part of the consolidated financial statements.
8
Notes to the Consolidated Financial Statements
The 30
st
period from 2022.01.01 to 2022.12.31
The 29
th
period from 2021.01.01 to 2021.12.31
HANATOUR Service Inc. and its Subsidiaries
1.
General Information :
(1)
The Parent Company
London Stock Exchange on November 7, 2006, in the form of global depositary receipts (“GDRs”). As of November 1, 2011, the Parent
Company transferred its listing from the KRX KOSDAQ market to the stock market opened by the Korea Exchange.
The Parent Company is domiciled in Korea
million won. Harmonia 1, Inc. owns about 16.7% of the paid-in capital, major executives and employees own about 11.2%, while treasury
stock is about 3.4% (* HANATOUR Service Inc. and its subsidiaries are collectively referred to as the “Group”).
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