Financial Risk Management (Tables)

12 Months Ended

Dec. 31, 2025

Statement [LineItems]

Monetary assets and liabilities denominated in foreign currencies

Monetary assets and liabilities denominated in foreign currencies as of December 31, 2025 are as follows:


(In millions of won, thousands of foreign currencies)
		Assets								Liabilities
		Foreign currencies				Won equivalent				Foreign currencies				Won equivalent
USD			106,150			₩	152,314				1,021,242			₩	1,465,380
EUR			6,031				10,168				1				1
Others			—				1,071				—				14,504

						₩	163,553							₩	1,479,885

Hypothetical change in exchange rates by 10% would have increased (decreased) the Group's profit before income tax and equity

As of December 31, 2025, a hypothetical change in exchange rates by 10% would have increased (decreased) the Group’s profit before income tax and equity as follows:


(In millions of won)
		Profit before income tax												Equity
		If increased by 10%				If decreased by 10%				If increased by 10%				If decreased by 10%
USD		₩	11,616				(11,616	)		₩	8,541				(8,541	)
EUR			1,017				(1,017	)			748				(748	)
Others			(1,343	)			1,343				(987	)			987

		₩	11,290				(11,290	)		₩	8,302				(8,302	)

Disclosure of rate of fluctuation in the per stock price of the equity securities explanatory

(iii)

Price fluctuation risk

As of December 31, 2025, the Group holds equity instruments that are traded in an active market and is therefore exposed to the risk of fluctuations in market prices. Assuming all other variables remain constant, the impact of changes in

per-share

stock price of the equity securities on profit before income tax and equity for the year ended December 31, 2025 is as follows.

(In millions of won)

Profit before income tax

Equity

If increased by 10%

If decreased by 10%

If increased by 10%

If decreased by 10%

₩

—

₩

—

₩

71,077

(71,077

)

Maximum credit exposure

Maximum credit exposure as of December 31, 2025 and 2024 are as follows:


(In millions of won)
		December 31, 2025				December 31, 2024
Cash and cash equivalents(*)		₩	1,489,850				2,023,543
Financial instruments(*)			151,796				324,263
Accounts receivable – trade(*)			1,926,903				2,000,382
Long-term investment securities			2,651				2,205
Contract assets			188,609				136,737
Loans and other receivables(*)			872,412				920,977
Derivative financial assets			310,146				341,108

		₩	4,942,367				5,749,215

(*)

Amounts reclassified as assets held for sale as of December 31, 2025 and 2024 are not included.

Summary of gross carrying amounts of each financial asset except for accounts receivable trade and derivative financial asset

The Group’s maximum exposure to credit risk is equal to each financial asset’s carrying amount. The gross carrying amounts of each financial asset except for the accounts receivable – trade and derivative financial assets as of December 31, 2025 are as follows.


(In millions of won)
						Financial assets at amortized cost
		Financial assets at FVTPL				12-month ECL				Lifetime ECL – not credit impaired				Lifetime ECL – credit impaired
Gross amount		₩	205,614				812,203				10,342				39,013
Loss allowance			—				(2,262	)			(3,330	)			(34,721	)

Carrying amount		₩	205,614				809,941				7,012				4,292

Summary of changes in loss allowance for debt investments

Changes in loss allowance for debt investments for the year ended December 31, 2025 are as follows:


(In millions of won)
		12-month ECL				Lifetime ECL – not credit impaired				Lifetime ECL – credit impaired				Total
December 31, 2024		₩	3,343				4,004				60,238				67,585
Remeasurement of loss allowance, net			2,249				227				806				3,282
Transfer to lifetime ECL – not credit impaired			(3,330	)			3,330				—				—
Transfer to lifetime ECL – credit impaired			—				(4,231	)			4,231				—
Amounts written off			—				—				(30,685	)			(30,685	)
Recovery of amounts written off			—				—				633				633
Reclassified as assets held for sale			—				—				(502	)			(502	)

December 31, 2025		₩	2,262				3,330				34,721				40,313

Contractual maturities of financial liabilities

Contractual maturities of financial liabilities as of December 31, 2025 are as follows:


(In millions of won)
		Carrying amount				Contractual cash flows				Less than 1 year				1 - 5 years				More than 5 years
Accounts payable - trade		₩	110,867				110,867				110,867				—				—
Borrowings(*1)			633,125				653,644				347,513				306,131				—
Debentures(*1)			8,213,904				9,326,506				1,199,268				6,022,173				2,105,065
Lease liabilities			1,525,798				1,776,311				420,054				1,037,114				319,143
Accounts payable – other and others(*1,2)			3,506,048				3,524,280				3,323,502				200,778				—

		₩	13,989,742				15,391,608				5,401,204				7,566,196				2,424,208

(*1)

The contractual cash flow includes interest payables.

(*2)

The Group’s accounts payable – other and others includes amounts settled through supplier finance arrangements. The Group pays the amounts within the normal operating cycle, and no collateral is provided in connection with the agreements. As the payment terms have not been substantially modified, the related balances are classified as accounts payable – other and presented as operating cash flows in the statements of cash flows. Accounts payable – other and others relating to the supplier finance arrangements amount to ₩240,565 million as of December 31, 2025, which equals the amounts already received by the suppliers from the finance provider.

Periods in which cash flows from cash flow hedge derivatives are expected to occur

As of December 31, 2025, periods in which cash flows from cash flow hedge derivatives are expected to occur are as follows:


(In millions of won)		Carrying amount				Contractual cash flows				Less than 1 year				1 - 5 years
Assets		₩	201,262				207,405				22,033				185,372
Liabilities			(621	)			(627	)			(627	)			—

Debt-equity ratio

Debt-to-equity

ratio as of December 31, 2025 and 2024 are as follows:


(In millions of won)
		December 31, 2025				December 31, 2024
Total liabilities		₩	17,152,491				18,687,621
Total equity			12,955,292				11,827,634

Debt-to-equity ratios			132.40	%			158.00	%

Fair value and carrying amount of financial assets and liabilities including fair value hierarchy

1)

Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2025 are as follows:


(In millions of won)
		December 31, 2025
		Carrying amount				Level 1				Level 2				Level 3				Total
Financial assets that are measured at fair value:
FVTPL		₩	1,167,553				—				896,085				271,468				1,167,553
Derivative hedging instruments			201,262				—				201,262				—				201,262
FVOCI			3,025,988				966,666				—				2,059,322				3,025,988

		₩	4,394,803				966,666				1,097,347				2,330,790				4,394,803

Financial liabilities that are measured at fair value:
FVTPL			5,782				—				26				5,756				5,782
Derivative hedging instruments			621				—				621				—				621

		₩	6,403				—				647				5,756				6,403

Financial liabilities that are not measured at fair value:
Borrowings		₩	633,125				—				634,241				—				634,241
Debentures			8,213,904				—				8,183,670				—				8,183,670
Long-term payables – other			547,961				—				553,807				—				553,807

		₩	9,394,990				—				9,371,718				—				9,371,718

2)

Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2024 are as follows:


(In millions of won)		December 31, 2024
		Carrying amount				Level 1				Level 2				Level 3				Total
Financial assets that are measured at fair value:
FVTPL		₩	748,582				—				539,481				209,101				748,582
Derivative hedging instruments			270,797				—				270,797				—				270,797
FVOCI			1,739,133				1,088,578				171,967				478,588				1,739,133

		₩	2,758,512				1,088,578				982,245				687,689				2,758,512

Financial liabilities that are measured at fair value:
FVTPL			2,689				—				—				2,689				2,689
Derivative hedging instruments			748				—				748				—				748

		₩	3,437				—				748				2,689				3,437

Financial liabilities that are not measured at fair value:
Borrowings		₩	615,600				—				619,325				—				619,325
Debentures			8,511,280				—				8,582,255				—				8,582,255
Long-term payables – other			907,720				—				930,604				—				930,604

		₩	10,034,600				—				10,132,184				—				10,132,184

Interest rates used by the group for the fair value measurement

Interest rates used by the Group for the fair value measurement as of December 31, 2025 are as follows:


		Interest rate
Derivative instruments		1.52% ~ 17.92%
Borrowings and debentures		3.06% ~ 3.45%
Long-term payables – other		2.95% ~ 3.16%

Disclosure Of Rate Of Per Values Of Floating Rate Long Term Payables Explanatory [Table Text Block]

(In millions of won)


Profit before income tax								Equity
If increased by 1%p				If decreased by 1%p				If increased by 1%p				If decreased by 1%p
₩	(5,519	)			5,519			₩	(4,058	)			4,058

Fair value of assets

3)

There have been no transfers between Level 1 and Level 2 for the year ended December 31, 2025. The changes of financial assets and liabilities classified as Level 3 for the year ended December 31, 2025 are as follows:


(In millions of won)
		Balance as of January 1, 2025		Gain (loss) for the year				OCI				Acquisition				Disposal				Transfer(*)				Balance as of December 31, 2025
Financial assets
FVTPL		₩ 209,101			44,599				(1,271	)			27,312				(20,591	)			12,319				271,469
FVOCI		478,588			—				1,348,399				1,424				(49,468	)			280,379				2,059,322

		₩687,689			44,599				1,347,128				28,736				(70,059	)			292,698				2,330,791

Financial liabilities
FVTPL		₩(2,689)			(204	)			—				(13,279	)			10,416				—				(5,756	)

Carrying amount of financial instruments recognized of which offset agreements are applicable

Carrying amounts of financial instruments recognized to which offset agreements are applicable as of December 31, 2025 and 2024 are as follows:


(In millions of won)		December 31, 2025
		Gross financial instruments recognized				Amount offset				Net financial instruments presented on the consolidated statements of financial position
Financial assets:
Accounts receivable – trade and others		₩	222,477				(209,487	)			12,990
Financial liabilities:
Accounts payable – other and others		₩	213,881				(209,487	)			4,394

(In millions of won)		December 31, 2024
		Gross financial instruments recognized				Amount offset				Net financial instruments presented on the consolidated statements of financial position
Financial assets:
Accounts receivable – trade and others		₩	186,284				(174,372	)			11,912
Financial liabilities:
Accounts payable – other and others		₩	180,323				(174,372	)			5,951