Income Tax Benefit (Expense)

12 Months Ended

Dec. 31, 2024

Textblock 1 [Abstract]

Income Tax Benefit (Expense)

22.Income Tax Benefit (Expense)

(a)Details of income tax benefit (expense) for the years ended December 31, 2022, 2023 and 2024 are as follows:

(In millions of won)
	2022			2023			2024
Current tax benefit (expense)
Current year	₩	(206,465	)		(260,556	)		(191,865	)
Adjustment for prior years		59,484			67,985			(32,276	)
Subtotal	₩	(146,981	)		(192,571	)		(224,141	)
Deferred tax benefit
Changes in temporary differences	₩	384,766			955,283			6,381
Income tax benefit (expense)	₩	237,785			762,712			(217,760	)

22.Income Tax Benefit (Expense), Continued

(b)Details of income tax benefit (expense) recognized in equity for the years ended December 31, 2022, 2023, and 2024 are as follows:

(In millions of won)
	2022
	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	₩	165,864			(43,503	)		122,361
Gain (loss) on valuation of derivatives		12,495			(3,268	)		9,227
Foreign currency translation differences		(80,718	)		(245	)		(80,963	)
Change in equity of equity method investee		(11,603	)		1,925			(9,678	)
Total	₩	86,038			(45,091	)		40,947

(In millions of won)
	2023
	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	₩	64,635			(14,818	)		49,817
Foreign currency translation differences		43,572			(20,429	)		23,143
Change in equity of equity method investee		(2,679	)		25			(2,654	)
Total	₩	105,528			(35,222	)		70,306

(In millions of won)
	2024
	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	₩	(154,203	)		22,368			(131,835	)
Foreign currency translation differences		997,729			(71,092	)		926,637
Acquisition of non-controlling shareholders' interests in    subsidiaries		(61,512	)		14,093			(47,419	)
Change in equity of equity method investee		3,235			—			3,235
Total	₩	785,249			(34,631	)		750,618

22.Income Tax Benefit (Expense), Continued

(c)Reconciliation of the effective tax rate for the years ended December 31, 2022, 2023, and 2024 are as follows:

(In millions of won)
	2022			2023			2024
Loss for the year	₩	(3,195,585	)		(2,576,729	)		(2,409,300	)
Income tax benefit (expense)		237,785			762,712			(217,760	)
Loss before income tax	₩	(3,433,370	)		(3,339,441	)		(2,191,540	)
Income tax benefit using the statutory tax rate of each country		738,403			789,941			527,019
Income not subject to tax (Expenses not deductible for tax purposes)		(18,742	)		(19,759	)		2,704
Tax credits		145,189			207,745			22,854
Change in unrecognized deferred tax assets (*1)		(457,763	)		(156,783	)		(703,714	)
Adjustment for prior years		2,072			10,726			(13,807	)
Effect on change in tax rate		(168,372	)		(60,134	)		(54,821	)
Others		(3,002	)		(9,024	)		2,005
Total	₩	237,785			762,712			(217,760	)
Effective tax rate	(*2)			(*2)			(*2)

(*1) The effect of changes in deferred tax assets related to tax loss carryforwards and tax credit carryforwards that are not realizable based on the estimates of future taxable profit.

(*2) Actual effective tax rate is not calculated due to loss before income tax for the years ended December 31, 2022, 2023 and 2024.

(d)Global Minimum Tax

Under Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Group has assessed its impact of the Pillar Two legislation on its financial statements. As a result of the assessment, the Group has no current tax expenses related to Pillar Two legislation for the year ended December 31, 2024.