Trade and Other Receivables

12 Months Ended

Dec. 31, 2025

6.	Trade and Other Receivables

(1)

Details of trade and other receivables as of December 31, 2025 and 2024 are as follows:


(In millions of won)	December 31, 2025
	Gross amount		Loss allowance			Carrying amount
Current assets:
Accounts receivable – trade	₩	2,185,983		(267,481	)		1,918,502
Short-term loans		70,271		(607	)		69,664
Accounts receivable – other(*)		366,785		(20,459	)		346,326
Accrued income		1,998		—			1,998
Guarantee deposits (Other current assets)		102,396		—			102,396

		2,727,433		(288,547	)		2,438,886
Non-current assets:
Long-term loans		51,431		(19,247	)		32,184
Long-term accounts receivable – other		164,762		—			164,762
Guarantee deposits		167,823		—			167,823
Long-term accounts receivable – trade (Other non-current assets)		8,402		(1	)		8,401

		392,418		(19,248	)		373,170

	₩	3,119,851		(307,795	)		2,812,056

(*)

Gross and carrying amounts of accounts receivable – other as of December 31, 2025 include ₩189,963 million of financial instruments classified as fair value through profit or loss (“FVTPL”).


(In millions of won)	December 31, 2024
	Gross amount		Loss allowance			Carrying amount
Current assets:
Accounts receivable – trade	₩	2,247,334		(258,028	)		1,989,306
Short-term loans		65,767		(562	)		65,205
Accounts receivable – other(*)		394,820		(25,628	)		369,192
Accrued income		4,242		—			4,242
Guarantee deposits (Other current assets)		119,575		—			119,575

		2,831,738		(284,218	)		2,547,520
Non-current assets:
Long-term loans		75,842		(41,396	)		34,446
Long-term accounts receivable – other		173,252		—			173,252
Guarantee deposits		155,875		—			155,875
Long-term accounts receivable – trade (Other non-current assets)		11,078		(2	)		11,076

		416,047		(41,398	)		374,649

	₩	3,247,785		(325,616	)		2,922,169

(*)

Gross and carrying amounts of accounts receivable – other as of December 31, 2024 include ₩223,761 million of financial instruments classified as fair value through profit or loss (“FVTPL”).

(2)

Changes in the loss allowance on accounts receivable – trade measured at amortized costs for the years ended December 31, 2025 and 2024 are as follows:


	Beginning balance		Impairment		Write- offs(*)			Collection of receivables previously written-off		Ending balance
2025	₩	258,030		44,183		(42,484	)		7,753		267,482
2024	₩	242,737		49,865		(42,662	)		8,090		258,030

(*)

The Group writes off the trade and other receivables that are determined to be uncollectable due to reasons such as termination of operations or bankruptcy.

(3)

The Group applies the practical expedient that allows the Group to estimate the loss allowance for accounts receivable – trade at an amount equal to the lifetime expected credit losses. The expected credit losses include the forward-looking information. To make the assessment, the Group uses its historical credit loss experience over the past three years and classifies the accounts receivable – trade by their credit risk characteristics and days overdue. Details of loss allowance on accounts receivable – trade and information on days overdue as of December 31, 2025 are as follows:


(In millions of won)
		Less than 6 months			6 months ~ 1 year			1 ~ 3 years			More than 3 years
Telecommunications service revenue	Expected credit loss rate		1.58	%		73.47	%		90.76	%		99.99	%
	Gross amount	₩	1,413,007			56,639			150,448			25,965
	Loss allowance		22,393			41,615			136,546			25,964

Other revenue	Expected credit loss rate		2.78	%		53.91	%		62.41	%		93.48	%
	Gross amount	₩	514,691			5,170			8,827			19,638
	Loss allowance		14,310			2,787			5,509			18,358

Due to the nature of its business, which involves both fixed-line and wireless telecommunications, the Group’s accounts receivables from telecommunications revenue primarily consist of receivables from individual customers. As there are no significant differences in credit terms among customers, there is no material concentration of credit risk.

Receivables related to other revenue mainly consist of receivables from corporate customers. The Group transacts only with corporate customers whose credit risk is assessed as low. In addition, the Group is not exposed to significant credit concentration risk as the Group monitors the credit ratings of these customers on a regular basis and evaluates their creditworthiness accordingly. Although contract assets are subject to the expected credit loss assessment, no significant credit risk has been identified.