| Employee benefits |
12. Employee benefits
Details of defined benefit liability recognized as of December 31, 2025 and 2024 are as follows:
| Schedule of employee benefits liability recognized |
|
|
|
|
|
|
|
|
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Net defined benefit liability |
|
₩ |
|
|
1,257,693 |
|
|
|
559,270 |
|
The Company operates both the defined benefit plans and defined contribution plans as a retirement pension scheme. Defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market (investment) risk.
The expense recognized in relation to defined contribution plan for the year ended December 31, 2025, 2024 and 2023 is Korean Won 593,562 thousand, 295,080 thousand and 435,139 thousand, respectively.
| A. | Movement in net defined benefit (asset) liability |
Details of reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components as of December 31, 2025, 2024 and 2023 are as follows:
| Schedule of reconciliation from the opening balances | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
|
|
Defined benefit obligation |
| |
Fair value of plan assets | | |
Net defined benefit liabilities | |
| | |
|
|
2025 |
| |
2024 | | |
2023 | | |
2025 | | |
2024 | | |
2023 | | |
2025 | | |
2024 | | |
2023 | |
| | |
(In thousands of Korean won) |
| Balance at 1 January | |
₩ | |
| 559,271 | | |
| 706,102 | | |
| 928,148 | | |
| - | | |
| - | | |
| - | | |
| 559,271 | | |
| 706,102 | | |
| 928,148 | |
| Included in profit or loss | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Current service cost | |
| |
| 457,795 | | |
| 375,158 | | |
| 514,505 | | |
| - | | |
| - | | |
| - | | |
| 457,795 | | |
| 375,158 | | |
| 514,505 | |
| Past service credit | |
| |
| 292,523 | | |
| 19,015 | | |
| 31,375 | | |
| - | | |
| - | | |
| - | | |
| 292,523 | | |
| 19,015 | | |
| 31,375 | |
| Gains on Settlement | |
| |
| 1,132 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,132 | | |
| - | | |
| - | |
| Interest expense | |
| |
| 46,760 | | |
| - | | |
| - | | |
| 9,126 | | |
| - | | |
| - | | |
| 37,634 | | |
| - | | |
| - | |
| Subtotal | |
| |
| 798,210 | | |
| 394,173 | | |
| 545,880 | | |
| 9,126 | | |
| - | | |
| - | | |
| 789,084 | | |
| 394,173 | | |
| 545,880 | |
| Included in OCI | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Remeasurement loss(gain) | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Demographic assumption | |
| |
| - | | |
| (4,954 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (4,954 | ) | |
| - | |
| Financial assumption | |
| |
| (47,762 | ) | |
| 41,683 | | |
| 49,584 | | |
| - | | |
| - | | |
| - | | |
| (47,762 | ) | |
| 41,683 | | |
| 49,584 | |
| Adjustment based on experience | |
| |
| (261,251 | ) | |
| (80,813 | ) | |
| (159,142 | ) | |
| - | | |
| - | | |
| - | | |
| (261,251 | ) | |
| (80,813 | ) | |
| (159,142 | ) |
| Return on plan assets excluding interest income | |
| |
| - | | |
| - | | |
| - | | |
| 1,407 | | |
| - | | |
| - | | |
| (1,407 | ) | |
| - | | |
| - | |
| Subtotal | |
| |
| (309,013 | ) | |
| (44,084 | ) | |
| (109,558 | ) | |
| 1,407 | | |
| - | | |
| - | | |
| (310,420 | ) | |
| (44,084 | ) | |
| (109,558 | ) |
| Other | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Changes in scope of consolidation | |
| |
| 931,378 | | |
| - | | |
| - | | |
| 395,353 | | |
| - | | |
| - | | |
| 536,025 | | |
| - | | |
| - | |
| Benefits paid | |
| |
| (316,267 | ) | |
| (496,920 | ) | |
| (658,368 | ) | |
| - | | |
| - | | |
| - | | |
| (316,267 | ) | |
| (496,920 | ) | |
| (658,368 | ) |
| Subtotal | |
| |
| 615,111 | | |
| (496,920 | ) | |
| (658,368 | ) | |
| 395,353 | | |
| - | | |
| - | | |
| 219,758 | | |
| (496,920 | ) | |
| (658,368 | ) |
| Balance at 31 December | |
₩ | |
| 1,663,579 | | |
| 559,271 | | |
| 706,102 | | |
| 405,886 | | |
| - | | |
| - | | |
| 1,257,693 | | |
| 559,271 | | |
| 706,102 | |
| Schedule of
plan assets |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Cash |
|
₩ |
|
|
53 |
|
|
|
- |
|
| Time deposits |
|
|
|
|
405,833 |
|
|
|
- |
|
| Total |
|
₩ |
|
|
405,886 |
|
|
|
- |
|
| C. |
Defined benefit obligation |
Details of actuarial assumptions used for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule of
assumptions |
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
2024 |
|
|
2023 |
|
| Discount rate |
|
3.7% ~ 4.6% |
|
|
4.2 |
% |
|
|
4.9 |
% |
| Future salary growth |
|
6.28% ~ 7.1% |
|
|
7.1 |
% |
|
|
7.24 |
% |
Assumptions regarding future longevity and standard salary scale have been based on issued by Korea Insurance Development Institute.
As of December 31, 2025, the weighted average duration of the defined benefit obligation was 7.76 years.
The Group measures the risk of actuarial assumption changes as a 1% fluctuation in the discount rate and future salary growth rate of the amounts of defined benefit obligation, which reflects the management’s assessment of the risk of actuarial assumption fluctuation that can reasonably occur. The impact of a 1% fluctuation in discount rates and future salary growth rates on the Group’s defined benefit obligation as of December 31, 2025 and 2024 are as follows:
| Schedule of defined benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| |
|
|
|
Increased by
1% |
|
|
Decreased by
1% |
|
|
Increased by
1% |
|
|
Decreased by
1% |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Discount rate |
|
₩ |
|
|
(119,694 |
) |
|
|
138,208 |
|
|
|
(55,066 |
) |
|
|
66,463 |
|
| Future salary growth |
|
|
|
|
137,766 |
|
|
|
(121,689 |
) |
|
|
66,204 |
|
|
|
(55,864 |
) |
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
| D. |
Employee benefit expenses |
| |
i. |
Details of employee benefit expenses recognized for the years ended December 31, 2025, 2024 and 2023 are as follows: |
| Schedule of employee benefit expenses recognized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31,
2025 |
|
|
Year ended
December 31,
2024 |
|
|
Year ended
December 31,
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Wages and salaries |
|
₩ |
|
|
11,854,114 |
|
|
|
8,056,765 |
|
|
|
9,641,567 |
|
| Expenses related to post-employment plans |
|
|
|
|
1,382,647 |
|
|
|
689,253 |
|
|
|
981,019 |
|
| Social security contributions |
|
|
|
|
351,143 |
|
|
|
398,066 |
|
|
|
582,545 |
|
| Fringe benefit |
|
|
|
|
860,744 |
|
|
|
585,245 |
|
|
|
598,503 |
|
| Cash settled Share-based payments |
|
|
|
|
(18,676 |
) |
|
|
(180,127 |
) |
|
|
(25,758 |
) |
| Total |
|
₩ |
|
|
14,429,972 |
|
|
|
9,549,202 |
|
|
|
11,777,876 |
|
| |
ii. |
Expenses are recognized in the consolidated statements of comprehensive income (loss) as follows: |
| Schedule of Expenses are recognized in the consolidated statements of comprehensive
income |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Year ended
December 31,
2025 |
|
|
Year ended
December 31,
2024 |
|
|
Year ended
December 31,
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Cost of revenues |
|
₩ |
|
|
7,341,369 |
|
|
|
7,280,355 |
|
|
|
9,290,041 |
|
| Selling, general and administrative expenses |
|
|
|
|
7,088,603 |
|
|
|
2,268,847 |
|
|
|
2,487,835 |
|
| Total |
|
₩ |
|
|
14,429,972 |
|
|
|
9,549,202 |
|
|
|
11,777,876 |
|
|