v3.26.1
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Schedule of deferred tax expense
                           
        2025     2024     2023  
        (In thousands of Korean won)  
Current tax expense                            
Current year   ₩     876,391       233,403       1,319,643  
Adjustments recognized related to prior period incomes (*)         (79,248 )     (263,935 )     (518,699 )
 Total Current tax expense   ₩     797,143       (30,532 )     800,944  
Deferred tax expense                            
Origination and reversal of temporary differences   ₩     (362,851 )     (723,118 )     (40,165 )
Deferred taxes charged directly to equity         794       -       -  
Tax expense(benefit) on continuing operations         435,086       (753,650 )     760,779  

 

 
(*)In the normal course of business, the Company and its respective subsidiaries are examined by taxation authority. Our management regularly assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of its liabilities for income taxes.
Schedule of consolidated statements of income taxes
                                                                           
        2025     2024     2023  
        Before tax     Tax (expense)
benefit		     Net of tax     Before tax     Tax (expense)
benefit		     Net of tax     Before tax     Tax (expense)
benefit		     Net of tax  
        (In thousands of Korean won)  
Items that will not be reclassified to profit or loss                                                                            
Remeasurements of defined benefit liability   ₩     309,013       (794 )     308,219       44,085       -       44,085       109,558       -       109,558  
Schedule of effective tax rate
                     
        2025     2024     2023  
        (In thousands of Korean won)  
Profit before income tax   ₩     (207,674,801 )     (4,311,845 )     3,553,129  
Tax at the statutory income tax rate         (10,535,806 )     (844,871 )     720,604  
Adjustments:                            
Tax-exempt income         (1,857 )     (408 )     (92 )
Expenses not deductible for tax purposes         6,826,010       31,689       37,369  
Tax credits         (94,216 )     (84,755 )     (124,290 )
Changes in unrecognized deferred tax         3,481,880       380,738       (149,470 )
Adjustments recognized related to prior period incomes         (79,248 )     (263,935 )     121,794  
Others (differences in tax rate, etc.)         838,323       27,892       154,864  
Income tax expenses   ₩     435,086       (753,650 )     760,779  
Effective income tax rate (*)         -       -       21.4 %

 

 
(*)The effective tax rate is not calculated as the Company incurred a loss before income taxes for the years ended December 31, 2025 and 2024.
Schedule of deferred tax balances
                                           
        Beginning     Changes resulting
from business
combinations		     Increase
(decrease)		     Exchange
Rate Diff		     Ending  
Accrued income   ₩     (15,876 )     (603 )     (30,570 )     -       (47,049 )
Short-term financial instruments         91,074       19,278       14,934       -       125,286  
Inventories         569,966       (23,760 )     37,008       -       583,214  
Property & equipment including right-of-use assets         (2,052,129 )     (44,226 )     927,989       -       (1,168,366 )
Intangible assets other than goodwill         6,998       (129,352 )     607,864       5,427       490,937  
Allowance for bad debts         395,217       -       (5,102 )     -       390,115  
Investments in associate and subsidiary (*)         1,205,749       23,950       (1,305,999 )     -       (76,300 )
Accrued expenses         (5,291 )     175,901       (65,189 )     -       105,422  
Lease liabilities         2,246,860       26,629       (583,844 )     -       1,689,645  
Provisions         175,126       -       (43,162 )     -       131,964  
Investment property         (83,809 )     -       (361,321 )     -       (445,130 )
Defined benefit liabilities         117,936       53,066       18,445       -       189,447  
Brand         (399,157 )     -       399,157       -       -  
Contract assets         -       (60,788 )     54,869       -       (5,919 )
Prepaid expenses         -       (120,089 )     (79,337 )     -       (199,427 )
Prepayments         -       (55,537 )     27,876       -       (27,661 )
Trade and other payables         -       -       186,815       3,514       190,330  
Convertible Notes         -       -       569,322       10,710       580,031  
Other         57,399       812,858       768,957       27,499       1,666,713  
Total   ₩     2,310,064       683,358       1,147,367       47,150       4,187,939  
Loss carried forward   ₩     1,039,258       4,155,051       2,546,380       134,615       7,875,304  
Carryover tax credit         3,118,117       346,716       150,984       -       3,615,817  
Unrecognized deferred tax liabilities (assets) (*)         (5,855,583 )     (5,268,632 )     (3,481,880 )     (181,764 )     (14,787,859 )
Deferred tax assets (liabilities)   ₩     611,857       (83,507 )     362,851       -       891,201  

 

 
(*)As of December 31, 2025, the Company did not recognize deferred income tax assets for the temporary difference relating to investments in subsidiary as it is not probable such temporary differences can be utilized in the foreseeable future.

 

  ii. Movement in deferred tax balances as of December 31, 2024

 

        Tax effect  
        Beginning     Increase
(decrease)		     Ending  
        (In thousands of Korean won)  
Accrued income   ₩     (54,469 )     38,593       (15,876 )
Short-term financial instruments         74,007       17,067       91,074  
Inventories         220,559       349,407       569,966  
Property & equipment including right-of-use assets         (2,261,920 )     209,791       (2,052,129 )
Intangible assets other than goodwill         (10,712 )     17,710       6,998  
Allowance for bad debts         267,801       127,416       395,217  
Investments in associate and subsidiary (*)         924,522       281,227       1,205,749  
Accrued expenses         -       (5,291 )     (5,291 )
Lease liabilities         2,988,900       (742,040 )     2,246,860  
Provisions         192,644       (17,518 )     175,126  
Investment property         (681,506 )     597,697       (83,809 )
Defined benefit liabilities         143,140       (25,204 )     117,936  
Brand         (676,406 )     277,249       (399,157 )
Other         50,733       6,667       57,400  
Total   ₩     1,177,293       1,132,771       2,310,064  
Loss carried forward   ₩     509,696       529,562       1,039,258  
Carryover tax credit         4,246,455       (1,128,338 )     3,118,117  
Unrecognized deferred tax liabilities (assets) (*)         (6,044,706 )     189,123       (5,855,583 )
Deferred tax assets (liabilities)   ₩     (111,262 )     723,118       611,856  

 

 
(*)As of December 31, 2024, the Company did not recognize deferred income tax asset for the temporary difference relating to investments in subsidiary as it is not probable such temporary differences can be utilized in the foreseeable future.
Schedule of deferred assets liabilities
                   
        2025     2024  
        (In thousands of Korean won)  
Tax loss carryforwards   ₩     7,875,304       1,039,258  
Tax credit carryforwards         3,615,817       3,118,117  
Unrecognized temporary difference         3,296,738       1,698,208  
Schedule of unused tax loss carryforwards
                   
Year of expiration       Unused loss
carryforwards		     Unused tax credit
carryforwards		  
        (In thousands of Korean won)  
2026   ₩     -       -  
2027         -       -  
2028         -       -  
2029         -       188,128  
2030         -       2,929,990  
2031         -       -  
After 2031         7,543,356       497,699  
No expiry date         28,815,986       -  
Total   ₩     36,359,342       3,615,817  
Schedule of recovery of deferred tax assets and liabilities
                   
        December 31,
2025		     December 31,
2024		  
        (In thousands of Korean won)  
Deferred tax assets                    
- Deferred tax assets to be recovered after more than 12 months   ₩     1,334,368       593,760  
- Deferred tax assets to be recovered within 12 months         1,337,718       978,311  
Sub-total         2,672,086       1,572,071  
Deferred tax liabilities                    
- Deferred tax liabilities to be recovered after more than 12 months         (1,469,704 )     (939,073 )
- Deferred tax liabilities to be recovered within 12 months         (311,181 )     (21,142 )
Sub-total         (1,780,885 )     (960,215 )
Deferred tax assets (liabilities), net   ₩     891,201       611,856