Income Tax Benefit (Expense)

12 Months Ended

Dec. 31, 2025

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, 2023, 2024 and 2025 are as follows:

(In millions of won)	2023			2024			2025
Current tax expense
Current year	W	(260,556	)		(191,865	)		(109,389	)
Adjustment for prior years		67,985			(32,276	)		(43,785	)
Subtotal	W	(192,571	)		(224,141	)		(153,174	)
Deferred tax benefit
Changes in temporary differences	W	955,283			6,381			(44,708	)
Income tax expense	W	762,712			(217,760	)		(197,882	)

(b)Details of income tax benefit (expense) recognized in equity for the years ended December 31, 2023, 2024, and 2025 are as follows:

	2023
(In millions of won)	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	W	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	W	105,528			(35,222	)		70,306

	2024
(In millions of won)	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	W	(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	W	785,249			(34,631	)		750,618

	2025
(In millions of won)	Before tax			Income tax effect			Net of tax
Remeasurements of net defined benefit liabilities (assets)	W	81,177			(7,065	)		74,112
Foreign currency translation differences		(256,803	)		72,373			(184,430	)
Acquisition of non-controlling shareholders' interests in    subsidiaries		(18,683	)		(14,093	)		(32,776	)
Change in equity of equity method investee		2,800			(528	)		2,272
Total	W	(191,509	)		50,687			(140,822	)

22.Income Tax Benefit (Expense), Continued

(c)Reconciliation of the effective tax rate for the years ended December 31, 2023, 2024, and 2025 are as follows:

(In millions of won)	2023				2024			2025
Profit (loss) for the year	W		(2,576,729	)		(2,409,300	)		303,807
Income tax benefit (expense)			762,712			(217,760	)		(197,882	)
Profit (loss) before income tax	W		(3,339,441	)		(2,191,540	)		501,689
Income tax benefit (expense) using the statutory tax rate of each country			789,941			527,019			(80,069	)
Income not subject to tax (Expenses not deductible for tax purposes)			(19,759	)		2,704			(25,777	)
Tax credits			207,745			22,854			18,081
Change in unrecognized deferred tax assets (*1)			(156,783	)		(703,714	)		273,296
Adjustment for prior years			10,726			(13,807	)		(43,785	)
Effect on change in tax rate			(60,134	)		(54,821	)		(337,974	)
Others			(9,024	)		2,005			(1,654	)
Total	W		762,712			(217,760	)		(197,882	)
Effective tax rate		(*2)			(*2)				39.4	%

(*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, 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, current tax expenses is recognized for W7,570 million for the year ended December 31, 2025. The Group applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two legislation.