Deferred Tax Assets and Liabilities

12 Months Ended

Dec. 31, 2023

24.

Deferred Tax Assets and Liabilities

(a)

Unrecognized deferred tax liabilities

As of December 31, 2023, in relation to the taxable temporary differences on investments in subsidiaries amounting to W523,448 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, 2023, 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		December 31, 2033
Tax credit carryforwards	₩	869,364		7,302		18,476		114,435		90,124		99,937		60,401		79,543		159,552		239,594

24.

Deferred Tax Assets and Liabilities, Continued

(c)

Deferred tax assets and liabilities

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The book value of the Group's deferred income tax assets and liabilities may differ from the amounts actually recovered or settled.

Deferred tax assets and liabilities are attributable to the following:


(In millions of won)	Assets				Liabilities						Total
	December 31, 2022		December 31, 2023		December 31, 2022			December 31, 2023			December 31, 2022			December 31, 2023
Other accounts receivable, net	₩	—		—		(2,009	)		(61	)		(2,009	)		(61	)
Inventories, net		62,014		51,728		—			—			62,014			51,728
Defined benefit liabilities, net		—		—		(95,850	)		(89,753	)		(95,850	)		(89,753	)
Investments in subsidiaries and associates		—		—		(252,375	)		(89,649	)		(252,375	)		(89,649	)
Accrued expenses		111,293		97,867		—			—			111,293			97,867
Property, plant and equipment		704,117		609,345		(17,322	)		(43,282	)		686,795			566,063
Intangible assets		25,340		13,314		(4,042	)		(2,069	)		21,298			11,245
Provisions		57,210		39,586		—			—			57,210			39,586
Other temporary differences		112,771		70,182		(26,519	)		(11,451	)		86,252			58,731
Tax loss carryforwards		1,795,132		2,766,820		—			—			1,795,132			2,766,820
Tax credit carryforwards		170,971		148,215		—			—			170,971			148,215
Deferred tax assets (liabilities)	₩	3,038,848		3,797,057		(398,117	)		(236,265	)		2,640,731			3,560,792

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.

24.

Deferred Tax Assets and Liabilities, Continued

(d)

Changes in deferred tax assets and liabilities for the years ended December 31, 2022 and 2023 are as follows:


(In millions of won)	January 1, 2022			Profit or loss			Other comprehensive Income(loss)			December 31, 2022			Profit or loss			Other comprehensive loss			December 31, 2023
Other accounts receivable, net	₩	(17	)		(1,992	)		—			(2,009	)		1,948			—			(61	)
Inventories, net		68,679			(6,665	)		—			62,014			(10,286	)		—			51,728
Defined benefit liabilities, net		(26,642	)		(25,705	)		(43,503	)		(95,850	)		20,915			(14,818	)		(89,753	)
Subsidiaries and associates		(233,552	)		(20,503	)		1,680			(252,375	)		183,130			(20,404	)		(89,649	)
Accrued expenses		250,582			(139,289	)		—			111,293			(13,426	)		—			97,867
Property, plant and equipment		603,492			83,303			—			686,795			(120,732	)		—			566,063
Intangible assets		10,814			10,484			—			21,298			(10,053	)		—			11,245
Provisions		68,893			(11,683	)		—			57,210			(17,624	)		—			39,586
Other temporary differences		110,678			(21,158	)		(3,268	)		86,252			(27,521	)		—			58,731
Tax loss carryforwards		958,624			836,508			—			1,795,132			971,688			—			2,766,820
Tax credit carryforwards		489,505			(318,534	)		—			170,971			(22,756	)		—			148,215
Deferred tax assets (liabilities)	₩	2,301,056			384,766			(45,091	)		2,640,731			955,283			(35,222	)		3,560,792