| Statement of Cash flows |
36. Statement of Cash flows
Adjustments for income and expenses from operating activities for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule
of statement of Cash flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Depreciation |
|
₩ |
|
|
2,649,937 |
|
|
|
2,817,673 |
|
|
|
2,921,232 |
|
| Amortization |
|
|
|
|
600,074 |
|
|
|
356,010 |
|
|
|
362,800 |
|
| Impairment loss on property and equipment |
|
|
|
|
152,816 |
|
|
|
964,626 |
|
|
|
2,246 |
|
| Bad debt expenses |
|
|
|
|
404 |
|
|
|
297,162 |
|
|
|
171,561 |
|
| Losses on valuation of short-term investment securities |
|
|
|
|
2,388,883 |
|
|
|
- |
|
|
|
- |
|
| Other bad debt expenses |
|
|
|
|
594,481 |
|
|
|
347,419 |
|
|
|
- |
|
| Losses on disposal or retirement of property and equipment |
|
|
|
|
781,522 |
|
|
|
329,882 |
|
|
|
31,975 |
|
| Losses on valuation of long-term investment securities |
|
|
|
|
9,136 |
|
|
|
60,275 |
|
|
|
12,395 |
|
| Losses on disposal of long-term investment securities |
|
|
|
|
2,132,188 |
|
|
|
- |
|
|
|
- |
|
| Impairment loss on Intangible assets |
|
|
|
|
2,897,920 |
|
|
|
- |
|
|
|
- |
|
| Impairment loss on goodwill |
|
|
|
|
129,071,743 |
|
|
|
- |
|
|
|
- |
|
| Losses on disposal of short-term investment securities |
|
|
|
|
5,917 |
|
|
|
- |
|
|
|
- |
|
| Inventory valuation loss (reversal) |
|
|
|
|
(66,530 |
) |
|
|
1,578,040 |
|
|
|
(397,995 |
) |
| Unrealized losses on foreign currency transaction |
|
|
|
|
874,296 |
|
|
|
6,447 |
|
|
|
26,064 |
|
| Losses on disposal of short-term borrowings |
|
|
|
|
317,625 |
|
|
|
|
|
|
|
|
|
| Interest expenses |
|
|
|
|
3,904,290 |
|
|
|
1,257,378 |
|
|
|
1,385,142 |
|
| Miscellaneous expenses |
|
|
|
|
220 |
|
|
|
- |
|
|
|
- |
|
| (Reversal of) Share-based compensation expenses |
|
|
|
|
25,636,854 |
|
|
|
(180,127 |
) |
|
|
(25,758 |
) |
| Gains on valuation of warrants |
|
|
|
|
(16,622,386 |
) |
|
|
- |
|
|
|
- |
|
| Listing expenses |
|
|
|
|
25,075,227 |
|
|
|
- |
|
|
|
- |
|
| Severance Benefits |
|
|
|
|
789,084 |
|
|
|
394,173 |
|
|
|
545,880 |
|
| Losses on valuation of derivative instruments |
|
|
|
|
1,710,264 |
|
|
|
- |
|
|
|
- |
|
| Income tax expense (benefit) |
|
|
|
|
435,086 |
|
|
|
(747,380 |
) |
|
|
760,779 |
|
| Loss from investments in associates |
|
|
|
|
10,413 |
|
|
|
- |
|
|
|
- |
|
| Investment expenses |
|
|
|
|
18,778 |
|
|
|
- |
|
|
|
- |
|
| Losses on valuation of short-term financial instruments |
|
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
| Losses on valuation of long-term financial instruments |
|
|
|
|
889 |
|
|
|
115 |
|
|
|
8,717 |
|
| Loss on initial recognition of FVPL liabilities |
|
|
|
|
26,228,276 |
|
|
|
- |
|
|
|
- |
|
| Dividend income |
|
|
|
|
(2,613 |
) |
|
|
(1,463 |
) |
|
|
(1,462 |
) |
| Miscellaneous income |
|
|
|
|
(2,573 |
) |
|
|
- |
|
|
|
- |
|
| Gain on valuation of derivative instruments |
|
|
|
|
(860,353 |
) |
|
|
- |
|
|
|
- |
|
| Gains on valuation of long-term financial instruments |
|
|
|
|
(9,192 |
) |
|
|
(6,368 |
) |
|
|
(7,241 |
) |
| Reversal of loss on valuation of long-term investments |
|
|
|
|
(6,536 |
) |
|
|
- |
|
|
|
- |
|
| Investment revenue |
|
|
|
|
(2,142 |
) |
|
|
- |
|
|
|
- |
|
| Project settlement gain |
|
|
|
|
(904 |
) |
|
|
- |
|
|
|
- |
|
| Gain on debt forgiveness |
|
|
|
|
(309,849 |
) |
|
|
- |
|
|
|
- |
|
| Gain from investments in associates |
|
|
|
|
(5,902 |
) |
|
|
- |
|
|
|
- |
|
| Gains from merger |
|
|
|
|
(8,509 |
) |
|
|
- |
|
|
|
- |
|
| Gains on valuation of short-term investment securities |
|
|
|
|
(208,737 |
) |
|
|
- |
|
|
|
- |
|
| Reversal of other bad debt expenses |
|
|
|
|
(154,953 |
) |
|
|
- |
|
|
|
- |
|
| Gains on valuation of short-term financial instruments |
|
|
|
|
- |
|
|
|
(33 |
) |
|
|
(55 |
) |
| Unrealized gains on foreign currency transaction |
|
|
|
|
(120,693 |
) |
|
|
(88,458 |
) |
|
|
(376,295 |
) |
| Gains on disposal of right-of-use assets |
|
|
|
|
(461,212 |
) |
|
|
(131,193 |
) |
|
|
(1,042,833 |
) |
| Gains on disposal of property, plant and equipment |
|
|
|
|
(2,113 |
) |
|
|
(6,100 |
) |
|
|
(928 |
) |
| Gains on disposal of short-term loans |
|
|
|
|
- |
|
|
|
- |
|
|
|
(12,819 |
) |
| Gains on disposal of long-term loans |
|
|
|
|
- |
|
|
|
- |
|
|
|
(622,539 |
) |
| Interest income |
|
|
|
|
(407,595 |
) |
|
|
(287,285 |
) |
|
|
(406,933 |
) |
| Gains on valuation of long-term investment securities |
|
|
|
|
(78,955 |
) |
|
|
(149,926 |
) |
|
|
(116,900 |
) |
| Gains on valuation of FVPL liabilities |
|
|
|
|
(5,559,061 |
) |
|
|
- |
|
|
|
- |
|
| Total |
|
₩ |
|
|
201,395,515 |
|
|
|
6,810,867 |
|
|
|
3,217,039 |
|
Changes in assets and liabilities from operating activities for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule
of changes in assets and liabilities from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Other non-current non-financial assets |
|
₩ |
|
|
(118,649 |
) |
|
|
698,657 |
|
|
|
- |
|
| Other current non-financial assets |
|
|
|
|
578,126 |
|
|
|
54,560 |
|
|
|
(2,708,583 |
) |
| Accounts receivable — trade, net |
|
|
|
|
4,989,162 |
|
|
|
(2,665,062 |
) |
|
|
7,951,197 |
|
| Accounts receivable — other, net |
|
|
|
|
939,918 |
|
|
|
(346,964 |
) |
|
|
(303,948 |
) |
| Trade and other payables |
|
|
|
|
(8,056,159 |
) |
|
|
(447,975 |
) |
|
|
(19,972,438 |
) |
| Inventories, net |
|
|
|
|
(727,447 |
) |
|
|
(1,971,804 |
) |
|
|
3,329,293 |
|
| Contract liabilities |
|
|
|
|
646,601 |
|
|
|
- |
|
|
|
- |
|
| Value added tax receivables |
|
|
|
|
9,462 |
|
|
|
145,204 |
|
|
|
1,965,135 |
|
| Value added tax payables |
|
|
|
|
(20,715 |
) |
|
|
- |
|
|
|
- |
|
| Other current liabilities |
|
|
|
|
128,352 |
|
|
|
593,949 |
|
|
|
299,334 |
|
| Other non-current financial assets |
|
|
|
|
100,000 |
|
|
|
- |
|
|
|
- |
|
| Liabilities due to payment of benefits |
|
|
|
|
(316,267 |
) |
|
|
(496,920 |
) |
|
|
(658,367 |
) |
| Contract assets |
|
|
|
|
643,945 |
|
|
|
- |
|
|
|
- |
|
| Long-term investment securities |
|
|
|
|
(2,449,482 |
) |
|
|
- |
|
|
|
- |
|
| Payments for Investments in associates |
|
|
|
|
(66,000 |
) |
|
|
- |
|
|
|
- |
|
| Proceeds from Investments in associates |
|
|
|
|
47,892 |
|
|
|
- |
|
|
|
- |
|
| Other current provisions |
|
|
|
|
(17,170 |
) |
|
|
- |
|
|
|
- |
|
| Other non-current liabilities |
|
|
|
|
1,397,592 |
|
|
|
- |
|
|
|
- |
|
| Total |
|
|
|
|
(2,290,839 |
) |
|
|
(4,436,355 |
) |
|
|
(10,098,377 |
) |
Significant non-cash transactions for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule
of significant non-cash transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
(In thousands of Korean won) |
|
| Reclassification of long-term borrowings |
|
₩ |
|
|
- |
|
|
|
2,218,720 |
|
|
|
24,960 |
|
| Reclassification of non-current lease liabilities |
|
|
|
|
1,648,651 |
|
|
|
1,744,031 |
|
|
|
1,911,047 |
|
| Increase in Lease liabilities |
|
|
|
|
414,622 |
|
|
|
364,731 |
|
|
|
612,220 |
|
| Offset of loans |
|
|
|
|
- |
|
|
|
42,000 |
|
|
|
14,804,782 |
|
| Reclassification of Investment properties |
|
|
|
|
1,953,094 |
|
|
|
2,360,275 |
|
|
|
3,483,371 |
|
| Reclassification of long-term investment securities |
|
|
|
|
490,680 |
|
|
|
- |
|
|
|
- |
|
| Conversion of convertible bonds |
|
|
|
|
10,570,818 |
|
|
|
- |
|
|
|
- |
|
| Recognition of restoration provision |
|
|
|
|
10,352 |
|
|
|
- |
|
|
|
26,833 |
|
| Transfer of construction in progress |
|
|
|
|
6,062 |
|
|
|
- |
|
|
|
9,950 |
|
| Offset of other receivables |
|
|
|
|
- |
|
|
|
- |
|
|
|
646,380 |
|
| Loan reassignment: Involvement of the Parent company’s CEO |
|
|
|
|
- |
|
|
|
- |
|
|
|
2,900,000 |
|
| Payables related to the acquisition of treasury shares |
|
|
|
|
- |
|
|
|
- |
|
|
|
1,000,000 |
|
| Reclassification of long-term borrowings to capital surplus |
|
|
|
|
791,950 |
|
|
|
- |
|
|
|
- |
|
The movements of liabilities to cash flows arising from financing activities for the years ended December 31, 2025, 2024 and 2023 are as follows:
| Schedule
of liabilities to cash flows arising from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Borrowings |
|
|
Convertible notes |
|
|
Lease liabilities |
|
|
Total |
|
| Balance at 1 January 2023 |
|
₩ |
|
|
2,568,640 |
|
|
|
- |
|
|
|
17,403,492 |
|
|
|
19,972,132 |
|
| Changes from financing cash flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
130,000 |
|
|
|
- |
|
|
|
- |
|
|
|
130,000 |
|
| Repayment of borrowings |
|
|
|
|
(24,960 |
) |
|
|
- |
|
|
|
- |
|
|
|
(24,960 |
) |
| Payment of lease liabilities |
|
|
|
|
- |
|
|
|
- |
|
|
|
(1,617,756 |
) |
|
|
(1,617,756 |
) |
| Receipt of lease deposits |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total |
|
₩ |
|
|
105,040 |
|
|
|
- |
|
|
|
(1,617,756 |
) |
|
|
(1,512,716 |
) |
| Other changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Borrowing
assumed (*1) |
|
|
|
|
2,900,000 |
|
|
|
- |
|
|
|
- |
|
|
|
2,900,000 |
|
| Present value discount |
|
|
|
|
(282,734 |
) |
|
|
- |
|
|
|
- |
|
|
|
(282,734 |
) |
| New leases |
|
|
|
|
- |
|
|
|
- |
|
|
|
612,220 |
|
|
|
612,220 |
|
| Lease termination / lease modification |
|
|
|
|
- |
|
|
|
- |
|
|
|
(1,889,447 |
) |
|
|
(1,889,447 |
) |
| Interest expense |
|
|
|
|
72,055 |
|
|
|
- |
|
|
|
1,047,738 |
|
|
|
1,119,793 |
|
| Interest paid |
|
|
|
|
- |
|
|
|
- |
|
|
|
(1,047,738 |
) |
|
|
(1,047,738 |
) |
| Total |
|
₩ |
|
|
2,689,321 |
|
|
|
- |
|
|
|
(1,277,227 |
) |
|
|
1,412,094 |
|
| Balance at 31 December 2023 |
|
₩ |
|
|
5,363,001 |
|
|
|
- |
|
|
|
14,508,509 |
|
|
|
19,871,510 |
|
| Balance at 1 January 2024 |
|
₩ |
|
|
5,363,001 |
|
|
|
- |
|
|
|
14,508,509 |
|
|
|
19,871,510 |
|
| Changes from financing cash flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
870,000 |
|
|
|
- |
|
|
|
- |
|
|
|
870,000 |
|
| Repayment of borrowings |
|
|
|
|
(418,960 |
) |
|
|
- |
|
|
|
- |
|
|
|
(418,960 |
) |
| Payment of lease liabilities |
|
|
|
|
- |
|
|
|
- |
|
|
|
(1,663,415 |
) |
|
|
(1,663,415 |
) |
| Receipt of lease deposits |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Repayment of lease deposits |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total |
|
₩ |
|
|
451,040 |
|
|
|
- |
|
|
|
(1,663,415 |
) |
|
|
(1,212,375 |
) |
| Other changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Offset of loans |
|
|
|
|
(42,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
(42,000 |
) |
| Present value discount |
|
|
|
|
100,915 |
|
|
|
- |
|
|
|
- |
|
|
|
100,915 |
|
| New leases |
|
|
|
|
- |
|
|
|
- |
|
|
|
364,731 |
|
|
|
364,731 |
|
| Lease termination / lease modification |
|
|
|
|
- |
|
|
|
- |
|
|
|
(2,120,588 |
) |
|
|
(2,120,588 |
) |
| Interest expense |
|
|
|
|
- |
|
|
|
- |
|
|
|
851,543 |
|
|
|
851,543 |
|
| Interest paid |
|
|
|
|
- |
|
|
|
- |
|
|
|
(851,543 |
) |
|
|
(851,543 |
) |
| Total |
|
₩ |
|
|
58,915 |
|
|
|
- |
|
|
|
(1,755,857 |
) |
|
|
(1,696,942 |
) |
| Balance at 31 December 2024 |
|
₩ |
|
|
5,872,956 |
|
|
|
- |
|
|
|
11,089,238 |
|
|
|
16,962,194 |
|
| Balance at 1 January 2025 |
|
₩ |
|
|
5,872,956 |
|
|
|
- |
|
|
|
11,089,238 |
|
|
|
16,962,194 |
|
| Changes from financing cash flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
9,742,333 |
|
|
|
25,572,796 |
|
|
|
- |
|
|
|
35,315,129 |
|
| Repayment of borrowings |
|
|
|
|
(3,429,014 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,429,014 |
) |
| Payment of lease liabilities |
|
|
|
|
- |
|
|
|
- |
|
|
|
(2,055,725 |
) |
|
|
(2,055,725 |
) |
| Receipt of lease deposits |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Reclassification |
|
|
|
|
- |
|
|
|
1,208,196 |
|
|
|
- |
|
|
|
1,208,196 |
|
| Total |
|
₩ |
|
|
6,313,319 |
|
|
|
26,780,992 |
|
|
|
(2,055,725 |
) |
|
|
31,038,587 |
|
| Other changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in scope of consolidation |
|
|
|
|
5,861,311 |
|
|
|
3,920,244 |
|
|
|
361,690 |
|
|
|
10,143,245 |
|
| Foreign exchange differences |
|
|
|
|
(691,248 |
) |
|
|
348,309 |
|
|
|
(1,955 |
) |
|
|
(344,894 |
) |
| Conversion of Convertible Bonds to Common Stock |
|
|
|
|
- |
|
|
|
(8,045,803 |
) |
|
|
- |
|
|
|
(8,045,803 |
) |
| Other non-cash transactions |
|
|
|
|
(1,504,194 |
) |
|
|
10,929,831 |
|
|
|
- |
|
|
|
9,425,637 |
|
| New leases |
|
|
|
|
- |
|
|
|
- |
|
|
|
414,622 |
|
|
|
414,622 |
|
| Lease termination / lease modification |
|
|
|
|
- |
|
|
|
- |
|
|
|
(1,836,600 |
) |
|
|
(1,836,600 |
) |
| Interest expense |
|
|
|
|
131,318 |
|
|
|
259,508 |
|
|
|
538,378 |
|
|
|
929,204 |
|
| Interest paid |
|
|
|
|
- |
|
|
|
- |
|
|
|
(538,378 |
) |
|
|
(538,378 |
) |
| Gains on Valuation of FVPL |
|
|
|
|
- |
|
|
|
(5,559,062 |
) |
|
|
- |
|
|
|
(5,559,062 |
) |
| Total |
|
₩ |
|
|
3,797,187 |
|
|
|
1,853,028 |
|
|
|
(1,062,243 |
) |
|
|
4,587,972 |
|
| Balance at 31 December 2025 |
|
₩ |
|
|
15,983,462 |
|
|
|
28,634,020 |
|
|
|
7,971,269 |
|
|
|
52,588,751 |
|
| (*1) | Prior to 2023, the Parent Company granted a loan amounting
to Korean Won 1,700,000 thousand to its subsidiary. Upon consolidation, this intercompany transaction was offset. During 2023, the obligation,
along with a new loan of Korean Won 1,200,000 thousand borrowed by the subsidiary within the year, was transitioned to Cho Hyeong Seok,
CEO of the Parent Company. This reallocated liability is presented as “borrowing assumed”, denoting a change in debtor, not
the origination of a new loan. |
|