Statement of cash flows

6 Months Ended

12 Months Ended

Jun. 30, 2026

Dec. 31, 2025

26. Statement of cash flows

A.	Cash flows from operating activities

Details of adjustments for income and expenses from operating activities for the six-month periods ended June 30, 2026 and 2025 are as follows:

		Six-month period ended June 30, 2026

		(In thousands of Korean won)
Adjustments for income and expenses
Depreciation	₩		102,318		120,114
Amortization			1,167		1,136
Other bad debt expenses			65,379		62,266
Reversal of allowance for doubtful accounts			(287,100	)	-
Losses on valuation of derivatives			57,213		-
Gains on valuation of derivatives			(117,845	)	(309,333	)
Losses on foreign currency translation			66,412		4,530
Gains on foreign currency translation			(4,899	)	(20,439	)
Gains on Long-term investment securities			(3,560	)	-
Interest expenses			351,045		385,423
Interest income			(109,493	)	(121,109	)
Losses on bond redemption			12		17,292
Gains on disposition of property and equipment			(1,125	)	-
Severance benefits			117,057		119,073
Subtotal	₩		236,581		258,953
Changes in assets and liabilities
Other non-current assets			-		-
Other current non-financial liabilities	₩		434,653		201,577
Accounts receivable - other, net			(16,648	)	107,777
Prepaid expenses			21,383		25,748
Prepayments			(660	)	(94,192	)
Liabilities due to benefits paid			(40,601	)	(61,566	)
Subtotal	₩		398,127		179,344
Total	₩		634,708		438,297

B.	Significant non-cash transactions

Significant non-cash transactions for the six-month periods ended June 30, 2026 and 2025 are as follows:


	Six-month period ended June 30, 2026			Six-month period ended June 30, 2025
	(In thousands of Korean won)
Increase in lease liabilities		(16,073	)		947
Increase in derivative liabilities		(227,213	)		(143,667	)

C.	Movements of liabilities to cash flows arising from financing activities

The movements of liabilities from cash flows arising from financing activities for the six-month periods ended June 30, 2026 and June 30, 2025 are as follows:

		Current bond with warrants

		(In thousands of Korean won)
Balance at January 1, 2025	₩		3,519,139		-	117,351		551,681		4,188,171
Changes from financing cash flows
Proceeds from issuance of bond with warrants			2,000,000		-	-		-		2,000,000
Repayment of bond with warrants			(2,500,000	)	-	-		-		(2,500,000	)
Payment of lease liability principal			-		-	(58,029	)	-		(58,029	)
Total	₩		(500,000	)	-	(58,029	)	-		(558,029	)
Other changes										-
Proceeds from Warrants Exercised			-		-	-		-		-
Proceeds from borrowings			-		270,000	-		-		270,000
Other non-cash transactions			143,667		-	-		-		143,667
Lease reassessment			-		-	-		947		947
Interest expense			357,234		-	27,316		-		384,550
Interest paid			-		-	(27,316	)	-		(27,316	)
Reclassification			-		-	60,018		(60,018	)	-
Total	₩		500,901		270,000	60,018		(59,071	)	771,848
Balance at June 30, 2025	₩		3,520,040		270,000	119,340		492,610		4,401,990
Balance at January 1, 2026			3,265,312		-	122,626		430,005		3,817,943
Changes from financing cash flows
Proceeds from issuance of bond with warrants			-		-	-		-		-
Repayment of bond with warrants			(600,000	)	-	-		-		(600,000	)
Payment of lease liability principal			-		-	(56,773	)	-		(56,773	)
Total	₩		(600,000	)	-	(56,773	)	-		(656,773	)
Other changes
Proceeds from Warrants Exercised			-		-	-		-		-
Proceeds from borrowings			-		1,000,000	-		-		1,000,000
Other non-cash transactions			227,213		-	-		-		227,213
Lease reassessment			-		-	-		(16,073	)	(16,073	)
Interest expense			317,235		-	21,678		-		338,913
Interest paid			-		-	(21,678	)	-		(21,678	)
Reclassification			-		-	42,853		(42,853	)	-
Total	₩		544,448		1,000,000	42,853		(58,926	)	1,528,375
Balance at June 30, 2026	₩		3,209,760		1,000,000	108,706		371,079		4,689,545

30. Statement of cash flows

A.	Significant non-cash transactions

Significant non-cash transactions for the years ended December 31, 2025 and 2024 are as follows:


		2025		2024
		(In thousands of Korean won)
Increase in lease liabilities	₩		947		2,038

B.	Movements of liabilities to cash flows arising from financing activities

The movements of liabilities from cash flows arising from financing activities for the years ended December 31, 2025 and 2024 are as follows:

		Current bond with warrants

		(In thousands of Korean won)
Balance at January 1, 2024	₩		4,827,086		-	108,627		667,758		5,603,471
Changes from financing cash flows
Proceeds from issuance of bond with warrants			4,500,000		-	-		-		4,500,000
Repayment of bond with warrants			(2,750,005	)	-	-		-		(2,750,005	)
Payment of lease liability principal			-		-	(109,391	)	-		(109,391	)
Total	₩		1,749,995		-	(109,391	)	-		1,640,604
Other changes
Warrants settled through debt-to-equity swap			(4,160,000	)	-	-		-		(4,160,000	)
Other non-cash transactions			117,762		-	-		-		117,762
Lease reassessment			-		-	-		2,038		2,038
Interest expense			984,296		-	62,090		-		1,046,386
Interest paid			-		-	(62,090	)	-		(62,090	)
Reclassification			-		-	118,115		(118,115	)	-
Total	₩		(3,057,942	)	-	118,115		(116,077	)	(3,055,904	)
Balance at December 31, 2024	₩		3,519,139		-	117,351		551,681		4,188,171
Changes from financing cash flows
Proceeds from issuance of bond with warrants			9,200,000		-	-		-		9,200,000
Repayment of bond with warrants			(8,105,000	)	-	-		-		(8,105,000	)
Payment of lease liability principal			-		-	(117,348	)	-		(117,348	)
Total			1,095,000		-	(117,348	)	-		977,652
Other changes
Warrants settled through debt-to-equity swap			(1,305,000	)	-	-		-		(1,305,000	)
Other non-cash transactions			(788,594	)	-	-		-		(788,594	)
Lease reassessment			-		-	-		947		947
Interest expense			744,767		-	52,261		-		797,028
Interest paid			-		-	(52,261	)	-		(52,261	)
Reclassification			-		-	122,623		(122,623	)	-
Total			(1,348,827	)	-	122,623		(121,676	)	(1,347,880	)
Balance at December 31, 2025			3,265,312		-	122,626		430,005		3,817,943