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Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2025
Textblock 1 [Abstract]  
Property, Plant and Equipment
9.
Property, Plant and Equipment
(a)
Changes in property, plant and equipment for the years ended December 31, 2024 and 2025 are as follows:
(i)
2024

 

(In millions of won)

 

Land

 

 

Buildings
and
structures

 

 

Machinery
and
equipment

 

 

Furniture
and
fixtures

 

 

Construction
-in-progress
(*1)

 

 

Right-of-
use asset

 

 

Others
(*2)

 

 

Total

 

Acquisition cost as of
   January 1, 2024

 

W

 

472,813

 

 

 

10,192,281

 

 

 

52,107,890

 

 

 

942,376

 

 

 

7,571,687

 

 

 

245,149

 

 

 

1,448,688

 

 

 

72,980,884

 

Accumulated depreciation as of
   January 1, 2024

 

 

 

—

 

 

 

(4,715,087

)

 

 

(43,466,025

)

 

 

(775,953

)

 

 

—

 

 

 

(119,804

)

 

 

(1,062,377

)

 

 

(50,139,246

)

Accumulated impairment loss as
   of January 1, 2024

 

 

 

—

 

 

 

(447,003

)

 

 

(1,860,182

)

 

 

(13,285

)

 

 

(285,626

)

 

 

(6,099

)

 

 

(29,111

)

 

 

(2,641,306

)

Book value as of January 1, 2024

 

W

 

472,813

 

 

 

5,030,191

 

 

 

6,781,683

 

 

 

153,138

 

 

 

7,286,061

 

 

 

119,246

 

 

 

357,200

 

 

 

20,200,332

 

Additions

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,499,468

 

 

 

33,865

 

 

 

—

 

 

 

1,533,333

 

Depreciation (*3)

 

 

 

—

 

 

 

(444,982

)

 

 

(3,424,197

)

 

 

(80,195

)

 

 

—

 

 

 

(68,445

)

 

 

(305,354

)

 

 

(4,323,173

)

Disposals

 

 

 

(47,344

)

 

 

(28,598

)

 

 

(132,473

)

 

 

(178

)

 

 

—

 

 

 

—

 

 

 

(52,377

)

 

 

(260,970

)

Impairment loss (*4)

 

 

 

—

 

 

 

(28

)

 

 

(58,660

)

 

 

(1,275

)

 

 

(27,000

)

 

 

—

 

 

 

(7,249

)

 

 

(94,212

)

Others (*5)

 

 

 

873

 

 

 

948,851

 

 

 

4,186,807

 

 

 

42,191

 

 

 

(5,565,372

)

 

 

—

 

 

 

385,812

 

 

 

(838

)

Government grants received

 

 

 

—

 

 

 

—

 

 

 

(2,307

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,307

)

Effect of movements in
   exchange rates

 

 

 

—

 

 

 

265,665

 

 

 

350,074

 

 

 

7,520

 

 

 

106,339

 

 

 

23,058

 

 

 

9,741

 

 

 

762,397

 

Classified as held for sale

 

 

 

—

 

 

 

(545,867

)

 

 

(24,526

)

 

 

(4,050

)

 

 

(9,778

)

 

 

(18,791

)

 

 

(8,677

)

 

 

(611,689

)

Book value as of
   December 31, 2024

 

W

 

426,342

 

 

 

5,225,232

 

 

 

7,676,401

 

 

 

117,151

 

 

 

3,289,718

 

 

 

88,933

 

 

 

379,096

 

 

 

17,202,873

 

Acquisition cost as of
   December 31, 2024

 

W

 

426,342

 

 

 

10,529,816

 

 

 

53,029,839

 

 

 

925,048

 

 

 

3,581,525

 

 

 

225,250

 

 

 

1,570,421

 

 

 

70,288,241

 

Accumulated depreciation as
   of December 31, 2024

 

W

 

—

 

 

 

(4,813,622

)

 

 

(43,403,177

)

 

 

(793,522

)

 

 

—

 

 

 

(129,395

)

 

 

(1,161,523

)

 

 

(50,301,239

)

Accumulated impairment loss as
   of December 31, 2024

 

W

 

—

 

 

 

(490,962

)

 

 

(1,950,261

)

 

 

(14,375

)

 

 

(291,807

)

 

 

(6,922

)

 

 

(29,802

)

 

 

(2,784,129

)

 

(*1) As of December 31, 2024, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others mainly consist of tools and instruments.

(*3) The Group has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

9.
Property, Plant and Equipment, Continued

(*4) Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5) Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

(ii)
2025

 

(In millions of won)

 

Land

 

 

Buildings
and
structures

 

 

Machinery
and
equipment

 

 

Furniture
and
fixtures

 

 

Construction
-in-progress
(*1)

 

 

Right-of-
use asset

 

 

Others
(*2)

 

 

Total

 

Acquisition cost as of
   January 1, 2025

 

W

 

426,342

 

 

 

10,529,816

 

 

 

53,029,839

 

 

 

925,048

 

 

 

3,581,525

 

 

 

225,250

 

 

 

1,570,421

 

 

 

70,288,241

 

Accumulated depreciation as
   of January 1, 2025

 

 

 

—

 

 

 

(4,813,622

)

 

 

(43,403,177

)

 

 

(793,522

)

 

 

—

 

 

 

(129,395

)

 

 

(1,161,523

)

 

 

(50,301,239

)

Accumulated impairment loss
   as of January 1, 2025

 

 

 

—

 

 

 

(490,962

)

 

 

(1,950,261

)

 

 

(14,375

)

 

 

(291,807

)

 

 

(6,922

)

 

 

(29,802

)

 

 

(2,784,129

)

Book value as of January 1, 2025

 

W

 

426,342

 

 

 

5,225,232

 

 

 

7,676,401

 

 

 

117,151

 

 

 

3,289,718

 

 

 

88,933

 

 

 

379,096

 

 

 

17,202,873

 

Additions

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,230,814

 

 

 

59,797

 

 

 

—

 

 

 

1,290,611

 

Depreciation (*3)

 

 

 

—

 

 

 

(405,985

)

 

 

(2,820,923

)

 

 

(68,357

)

 

 

—

 

 

 

(54,801

)

 

 

(298,610

)

 

 

(3,648,676

)

Disposals

 

 

 

(12,559

)

 

 

(38,691

)

 

 

(79,455

)

 

 

(230

)

 

 

—

 

 

 

—

 

 

 

(35,999

)

 

 

(166,934

)

Reversal (Impairment loss) (*4)

 

 

 

—

 

 

 

(1

)

 

 

(1,696

)

 

 

23

 

 

 

(151,170

)

 

 

—

 

 

 

(6,418

)

 

 

(159,262

)

Others (*5)

 

 

 

2,320

 

 

 

78,511

 

 

 

824,638

 

 

 

59,400

 

 

 

(1,278,851

)

 

 

—

 

 

 

319,314

 

 

 

5,332

 

Government grants received

 

 

 

—

 

 

 

—

 

 

 

(1,041

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,041

)

Effect of movements in
   exchange rates

 

 

 

—

 

 

 

(25,102

)

 

 

(26,561

)

 

 

(610

)

 

 

(4,615

)

 

 

5,819

 

 

 

(1,058

)

 

 

(52,127

)

Book value as of
   December 31, 2025

 

W

 

416,103

 

 

 

4,833,964

 

 

 

5,571,363

 

 

 

107,377

 

 

 

3,085,896

 

 

 

99,748

 

 

 

356,325

 

 

 

14,470,776

 

Acquisition cost as of
   December 31, 2025

 

W

 

416,103

 

 

 

10,241,886

 

 

 

52,909,959

 

 

 

898,593

 

 

 

3,527,370

 

 

 

242,844

 

 

 

1,706,196

 

 

 

69,942,951

 

Accumulated depreciation as
   of December 31, 2025

 

W

 

—

 

 

 

(4,917,449

)

 

 

(45,387,667

)

 

 

(777,017

)

 

 

—

 

 

 

(136,546

)

 

 

(1,317,039

)

 

 

(52,535,718

)

Accumulated impairment loss as
   of December 31, 2025

 

W

 

—

 

 

 

(490,473

)

 

 

(1,950,929

)

 

 

(14,199

)

 

 

(441,474

)

 

 

(6,550

)

 

 

(32,832

)

 

 

(2,936,457

)

 

(*1) As of December 31, 2025, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others mainly consist of tools and instruments.

(*3) The Group has classified the depreciation as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses. It includes capitalized development costs.

(*4) Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(*5) Others mainly represent the reclassification of construction-in-progress to other property, plant and equipment.

(b)
Capitalized borrowing costs and capitalization rate for the years ended December 31, 2023, 2024 and 2025 are as follows:

 

(In millions of won)

 

2023

 

 

2024

 

 

2025

 

Capitalized borrowing costs

 

W

 

258,168

 

 

 

41,826

 

 

 

13,962

 

Capitalization rate

 

 

 

5.18

%

 

 

5.64

%

 

 

4.57

%

 

(c)
The Group provides a portion of property, plant and equipment as an operating lease. For the year ended December 31, 2025, rental income from property, plant and equipment is W5,028 million (2023: W2,271 million, 2024: W1,755 million).