In the depreciation keys for Korea, the full year convention is used for capital expenditure. Therefore, independent from the date of the capital expenditure, a full year depreciation is calculated. The procedure for the calculation of depreciation is as follows:

Depreciation amount = (APC + Capital Expenditure)/total number of years of useful life

If the company makes a capital expenditure for an asset with 10% residual value being depreciated according to the regulations explained above, the capital expenditure is added up to the book value and depreciated over the remaining additional depreciation period allowed by the CTL.