Financial Instruments by Category

12 Months Ended

Dec. 31, 2025

Disclosure of detailed information about financial instruments [abstract]

(1) Financial instruments by category as of December 31, 2024 and 2025, are as follows:


(In millions of Korean won)	December 31, 2024
Financial assets	Financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVOCI		Derivatives used for hedging		Total
Cash and cash equivalents	₩	3,716,680	₩	—	₩	—	₩	—	₩	3,716,680
Trade and other receivables	7,573,409		—		114,774		—		7,688,183
Other financial assets	962,653		1,029,926		1,665,368		445,471		4,103,418


(In millions of Korean won)	December 31, 2024
Financial liabilities	Financial liabilities at amortized cost		Financial liabilities at FVTPL		Derivatives used for hedging		Others		Total
Trade and other payables1	₩	7,214,174	₩	—	₩	—	₩	—	₩	7,214,174
Borrowings	10,520,690		—		—		—		10,520,690
Other financial liabilities	942,135		132,011		3		—		1,074,149
Lease liabilities	—		—		—		1,059,453		1,059,453

1Amounts related to employee benefit plans are excluded in Trade and other payables.


(In millions of Korean won)	December 31, 2025
Financial assets	Financial assets at amortized cost		Financial assets at FVTPL		Financial assets at FVOCI		Derivatives used for hedging		Total
Cash and cash equivalents	₩	3,506,971	₩	—	₩	—	₩	—	₩	3,506,971
Trade and other receivables	7,806,644		—		107,644		—		7,914,288
Other financial assets	1,476,527		774,557		2,423,277		315,537		4,989,898


(In millions of Korean won)	December 31, 2025
Financial liabilities	Financial liabilities at amortized cost		Financial liabilities at FVTPL		Derivatives used for hedging		Others		Total
Trade and other payables1	₩	6,693,177	₩	—	₩	—	₩	—	₩	6,693,177
Borrowings	10,785,572		—		—		—		10,785,572
Other financial liabilities	999,020		105,810		13,862		—		1,118,692
Lease liabilities	—		—		—		1,423,206		1,423,206

1Amounts related to employee benefit plans are excluded in Trade and other payables.

(2) Gains or losses arising from financial instruments by category for the years ended December 31, 2023, 2024, 2025, are as follows:


(in millions of Korean won)	2023		2024		2025
Financial assets at amortized cost
Interest income1	₩	360,134	₩	379,371	₩	359,445
Gain on foreign currency transactions4	22,782		27,748		16,073
Gain on foreign currency translation	5,741		9,534		21,867
Loss on disposal	(3,409)		(2)		(3,196)
Loss on valuation	(172,966)		(184,942)		(140,636)
Financial assets at fair value through profit or loss
Interest income1	13,480		10,281		4,126
Dividend income5	6,918		8,411		9,569
Loss on valuation6	(31,965)		(66,133)		(94,089)
Gain (loss) on disposal	14,237		13,811		(1,107)
Gain on foreign currency transactions4	—		2,469		—
Gain (loss) on foreign currency translation	3,396		29,029		(7,354)
Financial assets at fair value through other comprehensive income
Interest income1	18,966		19,888		17,295
Dividend income5	52,813		62,220		66,328
Loss on disposal	(11,193)		(8,277)		(10,476)
Other comprehensive Income (loss) for the year2	121,805		(7,602)		457,093
Derivatives used for hedging
Gain (loss) on transactions	10,192		38,620		(63,006)
Gain (loss) on valuation7	34,092		361,844		(10,676)
Other comprehensive income for the year2	7,772		273,673		41,009
Reclassified to profit or loss from other comprehensive loss for the year2,3	(29,178)		(276,568)		15,948
Financial liabilities at amortized cost
Interest expense1	(358,486)		(387,535)		(394,901)
Gain (loss) on valuation8	3,411		(5,866)		(18,221)
Gain (loss) on foreign currency transactions4	(24,054)		(41,959)		60,073
Loss on foreign currency translation	(93,004)		(421,608)		(2,237)
Financial liabilities at fair value through profit or loss
Gain (loss) on valuation	(7,394)		(3,221)		26,633
Gain on disposal	4,788		—		(1,810)
Interest expense1	(44)		—		—
Gain (loss) on foreign currency transactions4	(5)		—		—
Derivatives used for hedging
Loss on transactions	—		—		(3,724)
Gain (loss) on valuation	11,503		9,337		(13,603)
Other comprehensive income (loss) for the year2	7,557		(871)		(10,000)
Reclassified to profit or loss from other comprehensive income for the year2,3	(8,764)		(9,386)		9,684
Lease liabilities
Interest expense1	(52,035)		(47,556)		(45,839)
Total	₩	(92,910)	₩	(215,290)	₩	284,268

1BC Card Co., Ltd., etc., subsidiaries of the Group, recognized interest income and expenses as operating revenue and expenses, respectively. Related interest income recognized as operating revenue is ₩121,639 million (2023: ₩112,973 million, 2024: ₩106,005 million) and related interest expense

recognized as operating expense is ₩73,318 million (2023: ₩55,677 million, 2024: ₩57,872 million) for the year ended December 31, 2025.

2The amounts directly reflected in equity after adjustments of deferred income tax.

3During the years ended December 31, 2024 and 2025, certain derivatives of the Group were settled and the related gain or loss on valuation of cash flow hedge in other comprehensive income was reclassified to profit or loss for the year.

4BC Card Co., Ltd., a subsidiary of the Group, recognized foreign currency transaction gain and loss and as operating revenue and expense. In relation to this, foreign currency transaction gain and loss recognized as operating revenue and expense amount to foreign exchange gain ₩4,732 million (2023 foreign exchange gain and loss: ₩5,597 million, 2024 foreign exchange gain: ₩10,298 million), respectively, for the year ended December 31, 2025.

5BC Card Co., Ltd., a subsidiary of the Group, recognized dividend income as operating revenue. Related dividend income recognized as operating revenue is ₩3,927 million (2023: ₩1,759 million, 2024: ₩1,701 million) for the year ended December 31, 2025.

6KT Investment Co., Ltd., etc., subsidiaries of the Group, recognized gain and loss on valuation of financial instruments measured at fair value through profit or loss as operating income and expenses. In relation to this, valuation gain and loss recognized as operating revenue and expense amount to valuation loss ₩450 million (2023 valuation loss: ₩11,112 million, 2024 valuation loss: ₩576 million), for the year ended December 31, 2025.

7BC Card Co., Ltd., a subsidiary of the Group, recognized gain and loss on valuation of derivatives as operating income and expenses. Related valuation gain recognized as operating revenue and expense is ₩57 million(2023 valuation gain: ₩48 million) for the year ended December 31, 2024.

8KT Cloud Co., Ltd., a subsidiary of the Group, recognized gain on valuation as convertible preferred stock of ₩335,399 million (2024 valuation gain: ₩317,178 million, 2023 valuation gain: ₩311,312 million) for the year ended December 31, 2025.