Financial Instruments – Fair values and risk management (Tables)

12 Months Ended

Dec. 31, 2025

Notes and other explanatory information [abstract]

Schedule of financial assets and liability at fair value

		Fair value		Level 1		Level 2		Level 3		Total
		(In thousands of Korean won)
Financial assets at fair value
Guaranteed Return Insurances (short-term) (*)	₩		21,560		-		21,560		-		21,560
Guaranteed Return Insurances (long-term) (*)			310,908		-		310,908		-		310,908
Long-term investment securities			3,983,858		268,768		-		3,715,090		3,983,858
Total	₩		4,316,326		268,768		332,468		3,715,090		4,316,326

(*) The fair value of guaranteed return insurances classified at Level 2 in the fair value hierarchy is determined using an evaluation of surrender proceeds received from financial institutions.

		Fair value		Level 1		Level 2		Level 3		Total
		(In thousands of Korean won)
Financial liability at fair value
Convertible Notes	₩		24,002,559		-		-		24,002,559		24,002,559
Warrants			528,772		425,350		-		103,422		528,772
Derivative liabilities			330,417		-		-		330,417		330,417
Total	₩		24,861,748		425,350		-		24,436,398		24,861,748

The carrying amounts of financial instruments by category as of December 31, 2024 are as follows:

		Fair value		Level 1		Level 2		Level 3		Total
		(In thousands of Korean won)
Financial assets at fair value
Guaranteed Return Insurances (short-term) (*)	₩		13,524		-		13,524		-		13,524
Guaranteed Return Insurances (long-term) (*)			322,538		-		322,538		-		322,538
Long-term investment securities			730,390		143,992		-		586,398		730,390
Total	₩		1,066,452		143,992		336,062		586,398		1,066,452

(*) The fair value of guaranteed return insurances classified at Level 2 in the fair value hierarchy is determined using an evaluation of surrender proceeds received from financial institutions.

Schedule of fair value measurements

		2025
		Long-term investment securities		Project investment
		(In thousands of Korean won)
Financial assets at fair value
Beginning balance	₩		586,398		-
Changes in scope of consolidation			3,000		1,509,715
Acquisition			102,600		4,911,974
Changing Account Classification			-		(490,680	)
Disposal			-		(500,000	)
Valuation			-		(2,407,918	)
Ending balance	₩		691,998		3,023,091

		2025
		Derivative liabilities			Warrant
		(In thousands of Korean won)
Financial liabilities at fair value
Beginning balance	₩		-			-
Changes in scope of consolidation			1,078,713			-
Issuance			1,070,677			15,893,067
Exercised			(2,650,417	)		-
Valuation			849,911			(15,791,555	)
Foreign exchange differences			(18,467	)		1,910
Ending balance	₩		330,417			103,422

		2025
		Convertible Notes
		(In thousands of Korean won)
Financial liabilities at fair value
Beginning balance	₩		-
Changes in scope of consolidation			-
Issuance			29,730,795
Exercised			(612,351	)
Valuation			(5,559,062	)
Foreign exchange differences			443,177
Ending balance	₩		24,002,559

Schedule of significant unobservable inputs

Category	Valuation Technique	Significant Unobservable Inputs	Relationship between Fair Value and Unobservable Inputs
Unlisted Equity Securities	Cost Model	-	-
Project investment	Cost Model (*)	-	-
Convertible Notes	Tsiveriotis-Fernandes Model	Volatility (Dec 31, 2025: 53.5%)	Estimated fair value decreases as expected volatility decreases.
Derivative liabilities (Conversion Option)	Tsiveriotis-Fernandes Model	Volatility (Dec 31, 2025: 53.5%)	Estimated fair value increases as expected volatility increases.
Derivative liabilities (D. Boral)	Monte Carlo Simulation	Volatility (Dec 31, 2025: 53.5%)	Estimated fair value increases as expected volatility increases.
Warrant	Binomial option pricing model	Volatility (Dec 31, 2025: 53.5%)	Estimated fair value decreases as expected volatility decreases.

(*) Project Investments are related to investments in movie making projects. Due to the inability to reasonably assume the future cash flow, management believes that Cost Model best represents the fair value of these financial instruments.

Schedule of financial risk management

		December 31, 2025		December 31, 2024
		(In thousands of Korean won)
Cash and cash equivalents	₩		8,364,432		4,150,572
Short-term financial instruments			21,560		410,000
Accounts receivable, net			4,917,020		9,340,923
Short-term loans, net			3,427,400		787,400
Other current financial assets			735,110		40,000
Long-term financial instruments			310,908		-
Long-term investment securities			3,983,858		-
Long-term loans, net			191,023		-
Other non-current financial assets			2,180,055		1,803,220
Total	₩		24,131,366		16,532,115

Schedule of financial Instruments accounts receivables

As of December 31, 2025	Expected loss rate		Carrying amount		Loss allowance
			(In thousands of Korean won)
Not due or overdue less than 90 days	0.03%			4,066,384		1,195
More than 90 days ~ Less than 180 days	1.19%			313,700		3,745
More than 180 days ~ Less than 270 days	0.00%			-		-
More than 270 days ~ Less than 1 year	0.00%			5,742		-
More than 1 year	100.00%			726,218		726,218
Total		₩		5,112,044		731,158

As of December 31, 2024	Expected loss rate		Carrying amount		Loss allowance
			(In thousands of Korean won)
Not due or overdue less than 90 days	0.35%	₩		9,186,195		32,453
More than 90 days ~ Less than 180 days	3.95%			12,952		512
More than 180 days ~ Less than 270 days	13.01%			36,013		4,686
More than 270 days ~ Less than 1 year	0.00%			7,374		-
More than 1 year	99.21%			703,223		697,666
Total		₩		9,945,757		735,317

② Other receivables

As of December 31, 2025	Expected loss rate		Carrying amount		Loss allowance
			(In thousands of Korean won)
Not due or overdue less than 90 days	0.00%			529,639		-
More than 90 days ~ Less than 180 days	0.00%			-		-
More than 180 days ~ Less than 270 days	0.00%			-		-
More than 270 days ~ Less than 1 year	0.00%			6,495		-
More than 1 year	100.00%			539,151		539,151
Total		₩		1,075,285		539,151

As of December 31, 2024	Expected loss rate		Carrying amount		Loss allowance
			(In thousands of Korean won)
Not due or overdue less than 90 days	0.00%	₩		124,729		-
More than 90 days ~ Less than 180 days	0.00%			-		-
More than 180 days ~ Less than 270 days	0.00%			-		-
More than 270 days ~ Less than 1 year	0.00%			-		-
More than 1 year	98.95%			549,856		544,104
Total		₩		674,585		544,104

Schedule of financial Instruments liquidity risk

		December 31, 2025
		Carrying Amount		Less than 3 months		3 months ~ 1 year		1~2 years		2~5 years		More than 5 years		Total
		(In thousands of Korean won)
Non-derivative financial liabilities
Trade payables	₩		7,494,343		4,661,133		2,833,210		-		-		-		7,494,343
Other payables			42,784,819		42,338,213		446,606		-		-		-		42,784,819
Accrued expense			7,124,447		5,821,809		1,302,638		-		-		-		7,124,447
Secured borrowings			6,952,687		1,536,903		5,551,863		-		-		-		7,088,766
Non-secured borrowings			9,030,775		2,807		6,317,790		220,000		3,280,000		-		9,820,597
Convertible Notes			28,634,020		29,035,913		-		-		-		-		29,035,913
Lease liabilities			7,971,269		573,735		1,619,185		1,786,344		4,002,611		951,293		8,933,168
Other financial liabilities			470,000		-		250,000		220,000		-		-		470,000
Total			110,462,360		83,970,513		18,321,292		2,226,344		7,282,611		951,293		112,752,053

Financial liabilities of the Company by maturity according to the remaining period from December 31, 2024 to the contractual maturity date are as follows:

		December 31, 2024
		Carrying Amount		Less than 3 months		3 months ~ 1 year		1~2 years		2~5 years		More than 5 years		Total
		(In thousands of Korean won)
Non-derivative financial liabilities
Trade payables	₩		10,073,408		10,073,408		-		-		-		-		10,073,408
Other payable			1,239,546		1,239,544		-		2		-		-		1,239,546
Accrued expense			1,967,458		1,967,458		-		-		-		-		1,967,458
Secured borrowings			2,918,720		1,040,954		1,960,815		-		-		-		3,001,769
Non-secured borrowings			2,954,236		34,658		3,169,901		-		-		-		3,204,559
Lease liabilities			11,089,239		635,413		1,824,646		2,361,688		5,546,102		2,875,871		13,243,720
Other non-current financial liabilities			280,000		50,000		80,000		130,000		20,000		-		280,000
Total	₩		30,522,607		15,041,435		7,035,362		2,491,690		5,566,102		2,875,871		33,010,460

Schedule of financial Instruments financial assets and liabilities

	December 31, 2025
	Assets in foreign currency		Liabilities in foreign currency		Assets in Korean Won		Liabilities in Korean Won
	(Individual amounts in each foreign currency)				(In thousands of Korean won)
USD		233,358		-		334,846		-
JPY		61,293,425		2,922,387		562,447		26,817
CNY		235,483		-		48,218		-
BRL		-		-		-		-
SGD		-		-		-		-
MYR		1,687		-		598		-
PHP		-		-		-		-
THB		38,634		-		1,762		-
Total						947,871		26,817

	December 31, 2024
	Assets in foreign currency		Liabilities in foreign currency		Assets in Korean Won		Liabilities in Korean Won
	(Individual amounts in each foreign currency)				(In thousands of Korean won)
USD		55,174		222		81,105		327
JPY		275,425,381		7,665,387		2,579,304		71,785
CNY		157,619		-		31,724		-
BRL		340		-		81		-
SGD		1,051		-		1,136		-
MYR		10,721		-		3,530		-
PHP		910		-		23		-
THB		90,877		-		3,908		-
Total						2,700,811		72,112

Schedule of financial Instruments foreign currency exchange rates

	2025					2024
	Increased by 10%		Decreased by 10%			Decreased by 10%		Decreased by 10%
	(In thousands of Korean won)
USD		33,485		(33,485	)		8,078		(8,078	)
JPY		53,563		(53,563	)		250,752		(250,752	)
CNY		4,822		(4,822	)		3,172		(3,172	)
BRL		-		-			8		(8	)
SGD		-		-			114		(114	)
MYR		60		(60	)		353		(353	)
PHP		-		-			2		(2	)
THB		176		(176	)		391		(391	)
Total		92,106		(92,106	)		262,870		(262,870	)

Schedule of variable interest rate

		December 31, 2025					December 31, 2024
		Increased by 100 bp		Decreased by 100 bp			Increased by 100 bp		Decreased by 100 bp
		(In thousands of Korean won)
Interest	₩		42,750		(42,750	)		5,070		(5,070	)