Deferred Tax Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Textblock 1 [Abstract]

Deferred Tax Assets and Liabilities

24.Deferred Tax Assets and Liabilities

(a)Unrecognized deferred tax liabilities

As of December 31, 2022, in relation to the taxable temporary differences on investments in subsidiaries amounting to W619,258 million, the Controlling Company did not recognize deferred tax liabilities since the Controlling Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future.

(b)Unused tax credit carryforwards for which no deferred tax asset is recognized

As of December 31, 2022, the amount of unused tax credit carryforwards for which no deferred tax asset is recognized and their expiration dates are as follows:

(In millions of won)
	Total		December 31, 2025		December 31, 2026		December 31, 2027		December 31, 2028		December 31, 2029		December 31, 2030		December 31, 2031		December 31, 2032
Tax credit  carryforwards	₩	660,670		7,302		18,511		143,815		88,847		106,762		61,506		77,721		156,206

24.Deferred Tax Assets and Liabilities. Continued

(c)Deferred tax assets and liabilities are attributable to the following:

(In millions of won)	Assets				Liabilities						Total
	December 31, 2021		December 31, 2022		December 31, 2021			December 31, 2022			December 31, 2021			December 31, 2022
Other accounts    receivable, net	₩	—		—		(17	)		(2,009	)		(17	)		(2,009	)
Inventories, net		68,679		62,014		—			—			68,679			62,014
Defined benefit    liabilities, net		—		—		(26,642	)		(95,850	)		(26,642	)		(95,850	)
Investments in    subsidiaries and    associates		—		—		(233,552	)		(252,375	)		(233,552	)		(252,375	)
Accrued expenses		250,582		111,293		—			—			250,582			111,293
Property, plant and    equipment		632,378		704,117		(28,886	)		(17,322	)		603,492			686,795
Intangible assets		17,450		25,340		(6,636	)		(4,042	)		10,814			21,298
Provisions		68,893		57,210		—			—			68,893			57,210
Other temporary    differences		130,274		112,771		(19,596	)		(26,519	)		110,678			86,252
Tax loss carryforwards		958,624		1,795,132		—			—			958,624			1,795,132
Tax credit carryforwards		489,505		170,971		—			—			489,505			170,971
Deferred tax assets    (liabilities)	₩	2,616,385		3,038,848		(315,329	)		(398,117	)		2,301,056			2,640,731

Realization of deferred tax assets related to unused tax losses and tax credit carryforwards which are primarily related to Korea is affected by estimates in future taxable profits before they expire. The estimation uncertainty is primarily driven by the Group’s assumptions in revenue and operating expenditures.

(d)Changes in deferred tax assets and liabilities for the years ended December 31, 2021 and 2022 are as follows:

(In millions of won)	January 1, 2021			Profit or loss			Other comprehensive income			December 31, 2021			Profit or loss			Other comprehensive loss			December 31, 2022
Other accounts    receivable, net	₩	(13	)		(4	)		—			(17	)		(1,992	)		—			(2,009	)
Inventories, net		60,539			8,140			—			68,679			(6,665	)		—			62,014
Defined benefit    liabilities, net		(35,617	)		(48,463	)		57,438			(26,642	)		(25,705	)		(43,503	)		(95,850	)
Subsidiaries and    associates		(79,301	)		(150,797	)		(3,454	)		(233,552	)		(20,503	)		1,680			(252,375	)
Accrued expenses		123,106			127,476			—			250,582			(139,289	)		—			111,293
Property, plant and   equipment		607,315			(3,823	)		—			603,492			83,303			—			686,795
Intangible assets		11,469			(655	)		—			10,814			10,484			—			21,298
Provisions		63,943			4,950			—			68,893			(11,683	)		—			57,210
Other temporary    differences		169,565			(62,155	)		3,268			110,678			(21,158	)		(3,268	)		86,252
Tax loss    carryforwards		953,209			5,415			—			958,624			836,508			—			1,795,132
Tax credit    carryforwards		391,769			97,736			—			489,505			(318,534	)		—			170,971
Deferred tax assets    (liabilities)	₩	2,265,984			(22,180	)		57,252			2,301,056			384,766			(45,091	)		2,640,731