POSCO Holdings向SEC提交2026年中期报告6-K，为已在韩国市场披露的H1业绩的例行合规备案

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6-K
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d222446d6k.htm
FORM 6-K
Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE
13a-16
OR
15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2026
Commission File Number:
1-13368
POSCO HOLDINGS INC.
(Translation of registrant’s name into English)
POSCO Center, 440
Teheran-ro,
Gangnam-gu,
Seoul, Korea,
06194
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F
or Form
40-F.
Form
20-F ☒    Form
40-F ☐
POSCO HOLDINGS INC. is furnishing under cover of Form
6-K:
Exhibit 99.1:
An English-language translated documents of POSCO HOLDINGS INC.’s Interim Report (2Q) for the year 2026.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
POSCO HOLDINGS INC.
(Registrant)
Date: August 31, 2026
By
/s/ Han, Young Ah
(Signature)
Name: Han, Young Ah
Title: Executive Vice President

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EX-99.1
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EX-99.1
EX-99.1
Table of Contents
Exhibit 99.1
INTERIM REPORT
(From January 1, 2026 to June 30, 2026)
THIS IS AN ENGLISH TRANSLATION OF THE BUSINESS REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES
COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION
CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND
NON-CONSOLIDATED
BASIS IN ACCORDANCE WITH THE KOREAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS
(K-IFRS)
WHICH
DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.
Table of Contents
INTERIM REPORT
(From January 1, 2026 to June 30, 2026)
To:  Korean Financial Services Commission and Korea Exchange
/s/ LEE, Ju Tae
LEE, Ju Tae
President and Representative Director
POSCO HOLDINGS INC.
6261
Donghaean-ro,
Pohang-si, Nam-gu, Gyungsangbuk-do, Korea
Telephone:
+82-54-220-0114
/s/ Han, Young Ah
Han, Young Ah
Head of IR office, Executive Vice President
POSCO HOLDINGS INC.
6261
Donghaean-ro,
Pohang-si, Nam-gu, Gyungsangbuk-do, Korea
Telephone:
+82-054-220-0114
2
Table of Contents
TABLE OF CONTENTS
I.   Overview
4
II. Business
11
III.  Financial Statements
37
IV.  Corporate Governance
41
ø
Attachment: Independent auditors’ review reports on consolidated and separate financial statements
3
Table of Contents
I. OVERVIEW
1. Scope of Business
A. POSCO HOLDINGS INC.
(the
“Company,” formerly POSCO)
1)
(1) Change of the company name: At the Extraordinary
General Meeting of Shareholders convened on January 28, 2022, POSCO (the “Company”) approved the vertical
spin-off
plan, as proposed. Therefore, the name of the company was changed from
‘POSCO’ to ‘POSCO HOLDINGS INC.,’ effective March 2, 2022.
The Company’s business scope is as follows:
Before the vertical
spin-off
(Beginning of 2022)
After the
vertical
spin-off
(As of the date of submission)
(1)  To manufacture, market, promote, sell and distribute iron, steel and rolled products;
(1)  To engage in holding business of controlling the business of, and guiding, organizing and improving
the management of, subsidiaries by acquiring and owning the shares or ownership interests in subsidiaries (including
sub-subsidiaries
and companies controlled by such
sub-subsidiaries;
collectively “subsidiaries”);
(2)  To engage in harbor loading and unloading, transportation and warehousing businesses;
(3)  To engage in the management of professional athletic organizations;
(4)  To engage in the supply of gas and power generation as well as in the distribution business thereof
and in the resources development business;
(2)  To engage in the management and licensing of intellectual property rights including brands and
trademarks;
(5)  To engage in leasing of real estate and distribution businesses;
(3)  To engage in the investment related to
start-up
assistance
and new technology;
(6)  To engage in the supply of district heating business;
(4)  To engage in market research, management advisory and consulting services;
(7)  To engage in marine transportation, processing and sales of minerals within or independent of
Korea;
(5)  To engage in technology research and commissioned services;
(8)  To engage in educational service and other services related to business;
(6)  To engage in matters entrusted by subsidiaries to assist the subsidiaries’
businesses;
(9)  To engage in manufacture, process and sale of
non-ferrous
metal;
(7)  To engage in the supply of gas such as hydrogen and resources development business;
(10) To engage in technology license sales and engineering business; and
(8)  To engage in leasing of real estate and distribution businesses; and
(11) To engage in all other conducts, activities or businesses which are related, directly or indirectly, to the
attainment and continuation of the foregoing purposes
(9)  To engage in all other conducts, activities or businesses which are related, directly or indirectly,
to the attainment and continuation of the foregoing purposes.
4
Table of Contents
2. Business Organization
A. Highlights of the Company’s Business Organization
(1) Location of the Headquarters
Before the vertical
spin-off
(Beginning of 2022)
After the vertical
spin-off
(As of the date of submission)
Name
POSCO
POSCO HOLDINGS INC.
Location of
the Headquarters
6261
Donghaean-ro
(Goedong-dong),
Nam-gu, Pohang-si, Gyeongsangbuk
-do, Korea
6261
Donghaean-ro
(Goedong-dong),
Nam-gu, Pohang-si, Gyeongsangbuk
-do, Korea
(2) Summary of consolidated subsidiaries
$
(Unit: Number of companies)
Number of consolidated subsidiaries
Number of
major subsidiaries
Jan 1, 2026
Increase
Decrease
June 30, 2026
Listed
7
-
-
7
7
Unlisted
191
6
5
192
78
Total
198
6
5
199
85
*
The number of consolidated companies above does not include POSCO HOLDINGS
*
Among listed corporations, there is one overseas corporation
(5 domestic corporations and 2 overseas corporation).
*
Newly included :
POS-Louisiana
Inc., Centrux LNG Pte. Ltd., Gale
International Korea, LLC, Yingkou PFM Refractories Co., Ltd., FUTUREM VIETNAM COMPANY LIMITED, NRG Metals Argentina S.A.
*
Excluded subsidiaries : GOLDEN LACE POSCO INTERNATIONAL CO., LTD., POSCO (Zhangjiagang) Stainless Steel
Co.,Ltd., Qingdao Pohang Stainless Steel Co., Ltd., Zhangjigang Pohang Port Co., Ltd., Zhangjiagang BLZ Pohang International Trading
5
Table of Contents
(3) Major Changes in the Board of Directors
Date of
Change
Type of General
Meeting of
Shareholders
Appointment
Expiration of Term
New
Re-appointment
March 18, 2022
Ordinary
Inside
Director
YOO, Byeong Og
Representative Director
CHON, Jung
Son
Representative Director
KIM, Hag
Dong
Non-standing
Director
KIM, Hag Dong
Inside Director
CHUNG, Chang
Hwa
Inside Director
JEONG,
Tak
Independent Director
YOO, Jin
Nyong
*
Independent Director
PAHK, Heui
Jae
Independent Director
KIM, Shin
Bae
Independent Director
SOHN Sung
Kyu
*
Independent Director
CHUNG, Moon
Ki
March 17, 2023
Ordinary
Representative Director
JEONG, Ki
Seop
Inside
Director
YOO, Byeong Og
Representative Director
CHON, Jung
Son
Inside Director
KIM, Ji Yong
Non-standing
Director
KIM, Hag Dong
Inside Director
CHUNG, Chang
Hwa
Independent Director
KIM,
Joongi*
Independent Director
CHANG, Seung
Wha
March 21, 2024
Ordinary
Representative Director
CHANG, In
Hwa
Representative Director
JEONG, Ki
Seop
Representative Director
CHOI, Jeong
Woo
Inside Director
KIM, Jun
Hyung
Independent Director
YOO, Young
Sook
Inside Director
KIM, Ji
Yong
Inside Director
KIM, Ki Soo
Independent Director
Kwon,
Tae-Kyun
Inside Director
YOO, Byeong
Og
Independent Director
PARK, Sung
Wook
**
Independent Director
KIM, Sung
Jin
Independent Director
PAHK, Heui
Jae
***
March 20, 2025
Ordinary
Representative Director
LEE, Ju
Tae
Inside Director
KIM, Ki Soo
Representative Director
JEONG, Ki
Seop
Inside Director
CHUN, Sung
Lae
Independent Director
YOO, Jin
Nyong
Inside Director
KIM, Jun
Hyung
Independent Director
SOHN, Sung
Kyu
****
March 24, 2026
Ordinary
Inside
Director
CHUNG, Seok Mo
Inside
Director
KIM, Ki Soo
Inside Director
CHUN, Sung
Lae
Non-executive Director
LEE, Hee
Geun
Independent Director
KIM,
Joongi*****
Independent Director
KIM,
Jooyoun
*
Independent Director KIM, Joongi was newly appointed as an Audit Committee member at the General Meeting of
Shareholders held on March 17, 2023.
**
The newly appointed Independent Director PARK, Sung Wook, was elected to become an Audit Committee Member at the
General Meeting of Shareholders held on March 21, 2024.
***
Independent Director Pahk Heui Jae voluntarily resigned at the General Meeting of Shareholders held on
March 21, 2024.
****
Independent Director SOHN, Sung Kyu was re-appointed as Audit Committee Member at the General Meeting of
Shareholders held on March 20, 2025.
*****
Independent Director KIM, Joongi was re-elected as independent director to become an Audit Committee member at
the General Meeting of Shareholders held on March 24, 2026.
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Table of Contents
(4) Changes of the Major Shareholders of POSCO HOLDINGS INC.
Since January 30, 2007, National Pension Service holds the largest number of common shares of POSCO HOLDINGS INC.
a) From SK Telecom to National Pension Service
b) Date of
Change: January 30, 2007
For further reference, please refer to the public disclosures of changes in common shares of the largest shareholder on
Financial Supervisory Service website (http://dart.fss.or.kr)
B. POSCO HOLDINGS’ Merger, Acquisition and Handover of Businesses
(1)
January 2019: Small scale merger of POSCO Processing & Service Co., Ltd into POSCO
(2)
September 2019: Handover of business right of LNG terminal to POSCO ENERGY
(3)
September 2019: Small scale merger of
By-Product
Gas Generation
Business from POSCO ENERGY into POSCO after
spin-off
(4)
January 2022: Handover of logistic related business to POSCO Terminal
(5)
March 2022: Completion of
Vertical Spin-off
Classification
Company Name
Business Unit
Surviving Company
POSCO HOLDINGS INC.
Development of future business
portfolios and management of
group’s
businesses
New Company
POSCO
Production and sale of steel
3. Changes in Share Capital
(Unit: Share, KRW/share, KRW million)
Type
Details
As of June 30,
2026
As of December 31,
2025
As of December 31,
2024
Common Stock
Total number
of
issued shares
***79,241,527
**80,932,952
*82,624,377
Par value (KRW)
5,000
5,000
5,000
Share capital
482,403
482,403
482,403
Preferred Stock
Total number
of
issued shares
-
-
-
Par value (KRW)
-
-
-
Share capital
-
-
-
Others
Total number
of
issued shares
-
-
-
Par value (KRW)
-
-
-
Share capital
-
-
-
Sum
Share capital
482,403
482,403
482,403
*
Due to the decision to cancel treasury shares by the resolution of the Board of Directors on July 12,
2024, the total number of shares issued by the company was decreased from 84,571,230 to 82,624,377, and there is no change in capital.
**
Due to the decision to cancel treasury shares by the resolution of the Board of Directors on February 19,
2025, the total number of shares issued by the company was decreased from 82,624,377 to 80,932,952, and there is no change in capital.
***
Due to the decision to cancel treasury shares by the resolution of the Board of Directors on February 19,
2026, the total number of shares issued by the company was decreased from 80,932,952 to 79,241,527, and there is no change in capital.
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Table of Contents
4. Other Information Regarding Shares
A. Total Number of Shares
(As of
June 30, 2026)
Authorized Shares
Issued Shares
200,000,000
79,241,527
ø
Currency of the Republic of Korea is the Korean Won (“KRW”).
ø
Par Value: KRW 5,000 per share
ø
Due to the decision to cancel treasury shares by the resolution of the Board of Directors on February 19,
2026, the total number of shares issued by the company was decreased from 80,932,952 to 79,241,527 without any change in capital. For more detail, please refer to the ‘Cancellation of Treasury Shares’ disclosed on February 19, 2026, at
SEC.
B. Treasury Shares Acquisition and Disposal
(As of June 30, 2026)
Method of
Purchase
Type
Beginning
Balance
Increased
Decreased
Cancelled
Ending
Balance
Remark
Direct
Common
Stock
1,996,299
-
-
1,691,425
304,874
(1)
Trust Contract
3,315,874
-
-
-
3,315,874
Total
5,312,173
-
-
1,691,425
3,620,748
(2)
(1)
On February 19, 2026, the Board of directors resolved to cancel 1,691,425 previously acquired treasury
shares, reducing the number of treasury shares from 5,312,173 to 3,620,748. For more detail, please refer to the ‘Cancellation of Treasury Shares’ disclosed on February 19, 2026, at SEC.
(2)
Aforementioned number of treasury shares includes 87,977 treasury shares which are subject to the exchange of
exchangeable bonds issued by the company on September 1, 2021. The treasury shares subject to this exchange is finalized at the time the exchange right is exercised and is currently deposited with the Korea Securities Depository.
ø
Changes after the disclosure reporting date (June 30, 2026)
-
On August 7, 2026, the Board of Directors passed a resolution for a dividend payout of 2,000 won per
common share for Q2; as a result, 994 treasury shares were additionally deposited for exchangeable bonds. The total number of deposited shares as of the report’s submission date is 88,971. For more detail, refer to the ‘Adjustment of
Conversion Price, Exercise Price of New Share Subscription Rights, and Exchange Price’ disclosure dated August 7, 2026.
8
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5. Voting Rights
(As of June 30, 2026)
Classification
Number of Common Shares
Remarks
(1) Number of Issued Shares
79,241,527
-
(2) Shares without Voting Rights
3,620,748
Treasury stock
(3) Shares with Voting Rights
75,620,779
-
6. Earnings and Dividends
(Unit: KRW million)
2026.1H
2025
2024
(Consolidated) Profit
*
1,151,960
657,654
1,094,917
(Separate) Profit
776,320
494,878
1,621,282
Earnings per Share
**
(Consolidated, KRW)
15,233
8,697
14,451
Cash Dividend Paid
302,483
756,208
757,485
Pay-out
Ratio
(Consolidated, %)
26.3
115
69.2
Dividend per Share (KRW)
4,000
10,000
10,000
Dividend Yield (%)
1.3
2.8
4.0
*
(Consolidated) Profit : Profit attributable to owners of the controlling company
**
Earnings per Share is based on consolidated financial statement prepared in
K-IFRS
ø
Changes after the disclosure reporting date (June 30, 2026)
-
On August 7, 2026, the Board of Directors passed a resolution for a dividend payout of KRW 2,000/share for
Q2 (total dividend payout: KRW151.2 billion).
9
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7. Stock Price and Trading Volume
The stock prices and trading volumes of POSCO HOLDINGS INC. for the last 6 months are as follows.
A. The Korean Stock Market
(Unit:
KRW/share, thousand shares)
January
2026
February
2026
March
2026
April
2026
May
2026
June
2026
Common
share
Highest
price
378,000
413,000
374,500
469,000
535,000
413,000
Lowest
price
297,500
341,500
321,500
341,000
417,000
305,000
Average
price
338,286
379,471
341,881
388,273
467,333
361,738
Trading
volume
Daily
highest
2,436
1,514
1,237
1,962
1,309
593
Daily
lowest
304
400
201
204
360
289
Monthly
18,122
10,726
8,681
10,824
11,706
9,258
B. New York Stock Exchange
(Unit: USD/ADS*, thousand ADS*)
January
2026
February
2026
March
2026
April
2026
May
2026
June
2026
American
Depositary
Share
(ADS)
Highest
price
64.71
70.55
69.04
79.4
91.72
70.11
Lowest
price
51.41
60.17
55.68
58.21
70.9
49.96
Average
price
58.12
65.49
58.84
66.13
79.73
60.26
Trading
volume
Daily
highest
766
284
357
358
503
1,058
Daily
lowest
117
86
115
109
123
256
Monthly
5,425
3,099
4,689
3,796
5,776
10,758
*
ADS: One American Depositary Share represents
one-fourth
of one Common
Share
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II. BUSINESS
1. Overview
A. Classification of Business
We classify our business into six segments:
Steel, Infrastructure (Trading), Infrastructure (Construction), Infrastructure (Logistics and associated businesses), Rechargeable Battery
Materials, and Others.
B. Summary of Financial Status of Segment
(Unit: KRW million)
Business
Segment
2026.1H
2025
2024
Sales
Operating
Income
(Loss)
Sales
Operating
Income
(Loss)
Sales
Operating
Income
(Loss)
Steel
30,356,911
747,983
59,413,172
1,960,162
62,200,920
1,636,808
Infrastructure
(Trading)
23,664,705
766,059
42,220,911
1,102,781
42,903,253
1,113,710
Infrastructure
(Construction)
3,598,183
94,775
7,228,333
(504,421
)
9,829,578
64,804
Infrastructure
(Logistics and
etc.)
2,061,211
37,388
3,554,224
83,603
4,139,201
147,603
Rechargeable Battery Materials
2,030,684
33,992
3,338,386
(440,863
)
3,829,851
(277,472
)
Others
1,025,018
744,370
1,500,108
972,350
2,111,150
1,600,212
Total
62,736,712
2,424,567
117,255,134
3,173,612
125,013,953
4,285,664
* Based on aggregation including internal transactions among affiliates.
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2. Business Status of Segments
A. Steel
There are 79 consolidated companies in the steel
segment, e.g., POSCO, POSCO STEELEON, and overseas subsidiaries, including PT.Krakatau POSCO in Indonesia, and overseas processing centers.
∎
POSCO
(1) Summary of
Business
POSCO produces steel components, such as hot rolled, cold rolled, and stainless steel, at Pohang Steelworks and Gwangyang Steelworks, of
which latter is the largest in the world.
Steel is a key industry that has served a pivotal role in achieving national economic development. Steel is
used as a basic material in diverse manufacturing businesses, such as automobiles, shipbuilding, home appliances, and construction; therefore, steel, by its nature, is intricately connected to the frontline industries.
Despite strong demand from emerging countries, such as India, global crude steel production in the first half of 2026 fell
year-on-year
due to the continued global tightening trend and sluggish demand in industries including China’s real estate market.
Overall growth in the global steel market slowed in 1H 2026. While infrastructure investment drove demand in emerging countries such as India, it was offset
by prolonged slump in China’s domestic market and weaker global demand driven by heightened Middle East risks. Furthermore, soaring energy costs and supply chain disruption resulting from the Middle East conflict directly impacted
manufacturing costs of steelmakers around the globe. Assuming progressive stabilization of the situation in the Middle East, global steel market conditions are expected to gradually improve in 2H 2026, led by a moderate demand recovery in advanced
economies, i.e., the U.S. and Europe, as well as robust growth in India.
Global Crude Steel Production
(Unit: million ton)
Crude Steel
Production
2026.1H
2025
2024
Global
932
1,804
1,839
Korea
(Ratio)
32
(3.4%)
62
(3.4%)
64
(3.5%)
ø
Source: World Steel Association (www.worldsteel.org)
The steel industry is affected by the business cycle and fluctuations in the demand industry.
Therefore, steel demand is impacted by changes in the real economy as well as market conditions of demand industries, i.e., shipbuilding, automobiles, home
appliance, and construction.
The steel industry is a capital- and technology-intensive industry that requires massive initial investment. Hence,
steelmakers are focused on reducing production costs to achieve price competitiveness.
POSCO aims to advance a comprehensive response system that
integrates marketing, production, R&D, and technology service to strengthen long-term partnership with key customers, thereby maintaining its competitive edge in the domestic market.
As for overseas steel, POSCO is securing a foundation for growth anchored on its global operations, as supply chains become increasingly localized and new
demand centers emerge.
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On the production side, the company is developing strategic, high value-added products and upgrading sales
network to respond to the growing demand in the next-generation energy sector, i.e., new mobility,
low-carbon
energy, and smart infrastructure. Furthermore, the newly completed electric arc furnace in
Gwangyang will help POSCO to meet global customer demand for carbon-reduced steel. Additionally, the company seeks to address global decarbonization goals and bolster its market leadership with its HyREX (hydrogen-based steelmaking) project.
(2) Market Share
(Unit: million ton)
Category
2026.1H
2025
2024
Production
Market share
Production
Market share
Production
Market share
Crude Steel Production
32
100.0
%
62
100.0
%
64
100.0
%
POSCO
18
56.3
%
35
56.5
%
35
55.2
%
Others
14
43.7
%
27
43.5
%
29
44.8
%
ø
Source: worldsteel (www.worldsteel.org)
The steel industry’s major demand sectors include automobiles, shipbuilding, and construction, in which steel is a key raw material. The company’s
sales consist of approximately 54% domestic sales and 46% exports, with Japan, Europe, and Southeast Asia accounting for a significant portion of exports. We maintain a
make-to-order
production and sales system while keeping the proportion of direct sales to
end-users
in the domestic market at
around 62% to secure sales stability.
In the face of persisting uncertainty in the global economy, POSCO is carrying out key strategies to respond to
changing business conditions. These strategies include fundamental innovation, global expansion, AI transformation (AX) and work innovation in the steel industry, and transition toward decarbonization.
Under the
‘P-Innovation’
strategy, POSCO is shifting to a profitability-focused portfolio by
decommissioning
low-efficiency
facilities and accelerating the production of high-grade steel centered on strategic products. Furthermore, new growth engines are secured through localized production
systems established in high-profit overseas markets, i.e., India.
POSCO is leading the AX of the steel industry by applying the technology to
implement AI steelworks tailored to POSCO’s operations. Through development of Intelligent Factory models and integration of AI agents, the company seeks to maximize operational efficiency; at the same time, a ‘One Team’ system is
established across sales, production, and procurement to enhance the pace of decision-making and market responsiveness.
As demonstrated by the completion
of the 2.5Mpta Electric Arc Furnace (EAF) plant in Gwangyang, POSCO is making concentrated efforts to drive the steel industry’s transition to decarbonization. Additionally, the company broke ground on the construction of the HyREX Demo
Plant to speed up the commercialization of hydrogen-based steelmaking and to strengthen its competencies in carbon-reduced steel production.
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Table of Contents
∎
POSCO STEELEON
POSCO STEELEON offers differentiated value by developing new market and technology and by providing designs and solutions in both domestic and overseas
surface-treated steel market.
The surface-treated steel market is divided into general-purpose and
high-end
segments. Competition is fierce in the general-purpose market because product technology is standardized and the market is flooded with
low-priced
Chinese products. On the other hand, we believe that the
market for
high-end
material not only generates high added value but also has potential to grow in terms of size.
Despite challenges posed by oversupply of domestic and foreign steel products and slowdown in demand industries, POSCO STEELEON is striving to secure a stable
profit base and expand market share by improving the competitiveness of high valued-added products, such as aluminum coated sheets, galvanized steel sheets with high corrosion resistance, and Print/Lami color steel sheets.
POSCO STEELEON is striving to strengthen its competitiveness in the
high-end
construction/exterior materials through
research and development customized to customer needs. In addition, POSCO STEELEON is preparing to expand its overseas business; the company operates a color steel sheet production line (50,000 ton) and coated steel sheet production line (20,000
ton) in Yangon, Myanmar, securing a bridgehead in Southeast Asia, a region projected for rapid growth.
∎
POSCO
M-TECH
(1) Summary of Business
POSCO
M-TECH
is a specialized supplier of packaging and supplementary materials for steelmaking. This includes aluminum
deoxidizers, which removes oversaturated oxygen in the steelmaking process. POSCO
M-TECH
continuously develops packaging machines and materials for steel products. The steel packaging business has enhanced
cost competitiveness by reducing packaging materials and improving quality; furthermore, the packaging equipment business is focused on developing automated equipment.
Business Areas
Business Areas
Major Goods and Services
Major Customer
Steel raw material business
Aluminum deoxidizer pellets, mini pellets, ingots and etc.
POSCO
Steel product packaging business
Steel packaging service, maintenance of packaging facilities and etc.
Engineering business
Steel packaging engineering, mechanical equipment and etc.
Consignment operation business
Ferromanganese factory and etc.
14
Table of Contents
(2) Market Share
(Unit: ton)
Category
2026.1H
2025
2024
Sales
Volume
Market
share
Sales
Volume
Market
share
Sales
Volume
Market
share
POSCO M-TECH
20,118
45.3%
35,387
41.3%
38,284
44.3%
PJ Metal
24,303
54.7%
50,213
58.7%
48,231
55.7%
Total
44,421
100.0%
85,600
100.0%
86,515
100.0%
ø
The exact market share of aluminum deoxidizers cannot be estimated since total domestic production and sales
volume are not tallied.
B. Infrastructure [Trading]
There are 39 subsidiaries in trading segment including POSCO INTERNATIONAL.
∎
POSCO INTERNATIONAL
POSCO
INTERNATIONAL and its consolidated subsidiaries engage in three major businesses: trading, energy and investment (food resources, motor core for EV, mineral resource development, etc.).
[Trading]
The industrial environment is becoming
increasingly challenging as protectionism intensifies in major economies and global economic downturn continues. Nevertheless, POSCO INTERNATIONAL is pioneering new markets and businesses. By leveraging its long-accumulated knowhow and extensive
overseas network, the company is strengthening the value chains of its core businesses, e.g., materials, mobility, food, while fostering future growth through its bio business.
Market Share
(Unit: USD million)
Category
2026.1H
2025.1H
Growth Rate
All Trading Companies in Korea
394,461
334,664
17.9%
POSCO INTERNATIONAL Corp.
3,057
3,957
(22.7%)
ø
Source: Korea International Trade Association (www.kita.net)
•
Steel/Mobility business
: Through collaboration with other POSCO group affiliates, we are generating
synergies to expand our business portfolio. We are in the process of establishing supply chains for the renewable energy industry and Hot Briquetted Iron (HBI) feedstock for the steelworks, while further strengthening our role in securing stable raw
material supplies for rechargeable battery materials.
15
Table of Contents
•
Motor core business:
POSCO INTERNATIONAL started engaging in the electric vehicle (EV) motor core business
with POSCO Mobility Solution, a company subsidiary. We plan to expand our motor core production to 7.5 million by 2030. In particular, we demonstrate first-class quality competitiveness in our production by leveraging POSCO’s high-quality
non-oriented
(NO) electrical steel and POSCO Mobility Solution’s proprietary stacking technology.
•
Palm farm in Indonesia
: Through the development of the PT. BIA palm plantation in Indonesia, we have
established a stable Crude Palm Oil (CPO) production system and secured profitability. We operate a sustainable palm business based on RSPO certification. Notably, in 2025, we significantly expanded our production base by completing the acquisition
of PT. Sampoerna Agro (now renamed PT. Prime AgriResources), a listed Indonesian company. In the second half of the same year, we completed the construction of a refinery with annual capacity of 500,000 tons. Consequently, we have successfully
integrated upstream and midstream processes to our value chain, spanning ‘seed-plantation-milling-refining,’.
[Energy]
The Energy Business segment is comprised of the Energy Business Division, Gas Business Division, Senex Energy, and
other domestic and international power generation-related investment entities.
•
Myanmar gas field business
: In February 2021, as part of the third phase of the development project, the
company began EPCIC to install a gas compression platform to produce
low-pressure
gas from the reservoir. Since completing construction in April 2024, the company has been producing gas since May 2024 from the
new facilities. Additionally, in July 2024, we began construction on the fourth phase of the development project, designed to acquire additional reserves to sustain the current level of gas production. Phase 4 is scheduled to begin operation in
2027.
•
Onshore gas business in Australia:
For timely implementation of the Group’s decarbonization and
hydrogen business strategies and to expand its existing energy business, currently centered in Myanmar, the company acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of
Australia, that produces gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. By the end of 2025, we completed the construction of three gas processing plants, establishing a 60PJ annual production system,
with efforts to continue growing our production and sales volumes.
•
LNG terminal
& connected business:
The Gwangyang LNG Terminal, Korea’s first
privately operated LNG import terminal, has a storage capacity of 930,000 KL across six tanks. By the end of 2026, we will expand to build two additional units to obtain total storage capacity of 1,330,000 KL. Serving as a key facility in the LNG
value chain, it plays a pivotal role in connecting upstream LNG production with the downstream gas supply to
end-users.
The company is pursuing phased expansion beyond Gwangyang to meet both local demand and
captive demand within the business group, while actively expanding into LNG bunkering, ship commissioning, and trading businesses.
16
Table of Contents
•
Power generation business:
As the first private power generator in Korea, our Incheon LNG Combined Cycle
Power Plant has been delivering reliable power supply to the Seoul metropolitan area for over 50 years. Located in Incheon’s Seo-gu district, the plant operates seven combined cycle power generators with total capacity of 3,412 MW, which
accounts for about 9% of the region’s generation capacity. The power plant is a smart power generation facility, incorporating IoT and big data technologies in its operations.
•
Domestic onshore wind power business:
In January 2015, the Sinan Green Energy acquired a business permit
to run an onshore wind farm in Jaeun-myeon in
Sinan-gun
city of the Jeollanam-do province. We are operating 20 onshore wind power generators since their installation in 2019. With a generation capacity of 62.7
MW, this onshore wind power complex produces approximately 120,000 MWh of clean energy annually, which is equivalent to removing 49,000 tons of carbon dioxide emissions annually.
•
Expansion into new business
To diversify its power generation portfolio, the company is driving district
power generation and integrated energy supply projects as well as
LNG-hydrogen
co-firing
power generation. Furthermore, it will continue domestic and international
expansion of LNG and renewable energy projects to solidify its position in the energy business.
B. Infrastructure [Construction]
There are 23 subsidiaries in construction segment including POSCO E&C.
∎
POSCO E&C
[Plant business]
POSCO E&C has established a unique position in the domestic steel plant sector with extensive experience in supplying and constructing equipment
for integrated steel mills and auxiliary facilities. The company has expanded into global markets, such as India, Brazil, and Indonesia, enhancing its reputation as a global player. Recently, the company has focused on carbon-reduced steel
technologies and water electrolysis projects. In power generation, POSCO E&C was the first construction company to enter the South American market in 2006 to build coal-fired and gas combined cycle power plants. The company is also expanding
involvement in nuclear power projects, including large-scale plants and national projects like i-SMR. In addition, by being the first in the world to apply high-manganese steel in LNG tank construction, the company has participated in numerous
domestic and overseas LNG terminal projects, e.g., Gulf MTP LNG terminal projects in Thailand. We have also built multiple plants in Pohang, Gwangyang, Argentina, and North America to produce raw materials and components for the rechargeable
battery.
The company has an extensive track record in various sectors, including roads, bridges, airports, seaports, and water treatment, and continues
to expand its presence in the world. Particularly in the offshore wind sector, the company is focused on signing projects and collaborating with global industry leaders to take early action to gain dominance in the market. In effect, the company
aims to systematically enhance our project execution capability and take a leading position as an EPC player in the offshore wind industry.
17
Table of Contents
[Construction business]
POSCO E&C has top class construction capabilities, product development capabilities, and commercialization capabilities in the field of high-rise buildings
and large-scale new city development. Representatively, the company is leading the Songdo International Business City Development Project and have successfully completed high-rise/supersize landmark projects such as POSCO Tower Songdo, Busan
Haeundae LCT, and Yeouido Park One. Additionally, in the fields of urban redevelopment/reconstruction and remodeling, POSCO E&C has achieved the highest number of orders in the industry, earning recognition for its brand value from consumers and
successfully executing numerous projects. Recently, our offerings are differentiated to meet diverse customer needs; ‘HAUTIERE’ is our
high-end
residential brand that joins other premium solutions.
In light of the upcoming super-aged society, the company plans to diversify its portfolio by continuously expanding into new business, such as senior residences.
B. Infrastructure [Logistics and associated businesses]
There are 16 subsidiaries of logistics and etc. segment including POSCO FLOW and POSCO DX.
∎
POSCO DX
POSCO DX has both IT and
operation automation technology (OT) capabilities. By converging IT and OT, the company has acquired prominence in applying this technology to manufacturing. Leveraging its proprietary
AI-based
platform, PosFrame, POSCO DX rolled out the Smart Factory technologies at POSCO’s steelworks and has since expanded its application into rechargeable battery material production processes as well as food & beverage manufacturing.
As a result, POSCO DX is now known as a specialized provider of Smart Factory solutions. More recently, the company has been integrating AI and robotics to kick Smart Factory operations into next gear and to build the Intelligent Factory.
In addition, based on its capabilities in building fulfillment logistics systems and hubs, POSCO DX delivered projects such as POSCO’s logistics
facilities, Incheon Airport’s Baggage Handling System (BHS), and Hanjin Express’s Mega Hub logistics center.
C. Rechargeable Battery
Materials
Rechargeable Battery Materials segment includes businesses related to EV battery materials, such as lithium, nickel, cathode material, anode
material, and recycling, and there are a total of 19 subsidiaries, including POSCO FUTURE M and POSCO Argentina.
18
Table of Contents
∎
POSCO FUTURE M
[Basic Industrial Materials]
•
Refractory production
: Refractories maintain their chemical properties and strength even at high
temperatures, making them indispensable in industrial facilities, including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO FUTURE M produces refractories and installs them in blast furnaces and various plants.
Recognized for its expertise in refractory installation, the company is expanding its business to plants in other fields both domestically and internationally. However, there are challenges due to overproduction by refractory companies worldwide and
the flood of Chinese
low-cost
products entering the market. Therefore, POSCO FUTURE M is striving to secure competitiveness in the global market by achieving maximum cost competitiveness and developing high
value-added products.
•
Lime business
: The quicklime market is dominated by POSCO and Hyundai Steel, which together account for
over 90% of the total quicklime used for steelmaking. POSCO FUTURE M is the largest supplier to POSCO.
[Energy Materials]
In order to leap forward as an energy materials company, POSCO FUTURE M acquired the anode materials division of LS Mtron in August 2010 and merged with
the cathode materials company POSCO ESM in April 2019. POSCO FUTURE M produces both anode active materials (anode materials) and cathode active materials (cathode materials), which are high-value-added materials in the rechargeable battery
value chain.
As an integral part of POSCO group, POSCO FUTURE M has established a full battery materials value chain, ranging from raw to active battery
materials and battery recycling. It is the only company to produce graphite-based anode materials, a critical mineral predominated by China. Therefore, the company expects sales to increase in the future by supplying global automakers and battery
makers that seek to decouple from China.
However, if POSCO group’s production of raw materials, such as lithium, nickel, and graphite, declines or
is delayed against the plan or if we are unable to meet the stricter Rules of Origin guidelines, we may not be able to reap all of the projected benefits.
D. Others
In Others segment, there are 24 subsidiaries
in total, including POSCO HOLDINGS. POSCO HOLDINGS is focusing on investment in new growth businesses and opportunities.
19
Table of Contents
3. Key Products
A. Sales of Key Products (2026.1H )
(Unit:
KRW 100 million, %)
Business
Segment
Item /
Business
Sector
Specific Use
Total Sales
Ratio
Steel
Hot-rolled
Product (HR)
Steel pipe, Shipbuilding, etc.
63,861
21.0%
Cold-rolled Product (CR)
Automobile, Home appliances, etc.
99,516
32.8%
Stainless Steel Products
Tableware, Pipes, etc.
37,915
12.5%
Others
Plates, Wire rods, etc.
102,277
33.7%
Gross Sum
303,569
100.0%
Deduction of Internal Trade
(115,638)
Sub Total
187,931
Infra-
structure
Trading
Steel, Metal
166,657
56.8%
Chemical, Strategic Item, Energy
42,835
14.6%
Others
27,090
9.2%
Construction
Architecture (Domestic)
23,035
7.9%
Plant (Domestic)
8,597
2.9%
Others (Domestic)
724
0.2%
Overseas Construction
2,115
0.7%
Owned Construction
620
0.2%
Others
2,236
0.8%
Logistics and etc.
Others
19,332
6.6%
Gross Sum
293,241
100.0%
Deduction of Internal Trade
(121,758)
Sub Total
171,483
Rechargeable  Battery
Materials
Gross Sum
20,307
100.0%
Deduction of Internal Trade
(8,508)
Sub Total
11,799
Others
Gross Sum
10,250
100.0%
Deduction of Internal Trade
(10,115)
Sub Total
135
Total Sum
371,348
*
Due to the organizational restructuring of POSCO E&C in December 2025, the performance of ‘Civil
Engineering (Domestic)’ sector has been consolidated into the ‘Plant (Domestic)’ sector.
20
Table of Contents
B. Price Movement Trends of Key Products
(Unit: KRW thousand/ton, KRW/kWh)
Business Segment
Products
2026.1H
2025
2024
Steel
Hot-rolled
Product (HR)
895
869
910
Cold-rolled Product (CR)
1,080
1,068
1,144
Infrastructure (Trading)
Electric Power
148
144
160
Rechargeable Battery Materials
Refractory
978
973
1,001
Lime
164
158
142
*
Construction and Logistics and associated business segments of Infrastructure are omitted because the raw
materials fluctuations defy meaningful measurement. In the case of the Rechargeable Battery Material business, detailed descriptions are omitted to avoid risk of information leakage.
[Steel]
(1) Criteria for Calculation
a) Subjects for Calculation: Unit sales prices of the standard
hot-rolled
product and cold-rolled
product
b) Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the
given period.
(2) Price Changing Factors
Steel prices in 1H of 2026 rose on increased FX volatility and higher raw materials and energy costs triggered by the Middle East conflict.
[Infrastructure (Trading)]
(1) Criteria for
Calculation
a) Subjects for Calculation: Price of electric power
b) Calculation Method and Unit: Unit price per electric power ÷ Net power volume generated
(2) Price Changing Factors
- Power: Korea Gas
Corporation cost, etc.
* The cost consists of introduction cost, supply cost, etc., and is affected by crude oil and exchange rates
21
Table of Contents
[Rechargeable Battery Materials]
(1) Criteria for Calculation
a) Subjects for
Calculation: Unit price of refractory and quicklime
b) Calculation Method and Unit: The average price of each product based on its total
sales including the freight costs during the given period.
(2) Price Changing Factors
a) Price of refractories: Affected by business condition of the front industry and raw material cost.
b) Quicklime price: Mainly influenced by utility unit price and raw materials cost.
C) Raw materials for Rechargeable Battery Materials: Subject to price fluctuations depending on the international supply of mineral resources.
4. Major Raw Materials
A. Current Status of
Major Raw Materials
(Unit: KRW 100 million)
Business Segment
Type of
Purchase
Item
Specific Use
Purchase
Amount
Portion
Steel
Raw Materials
Materials for
Iron-making
Iron ore for
blast
furnaces
86,419
68.9%
Sub-materials
Sub-materials
for ironmaking, steelmaking
24,520
19.6%
Stainless Steel Materials
Key materials forsts production
14,460
11.5%
Infra-
structure
Trading
Raw Materials
LNG
Material for Power Generation
6,423
100.0%
Construction
Raw Materials
Ready-mixed Concrete
Construction of Structure
1,301
19.7%
Steel
Reinforcement
Strengthening Concrete
950
14.3%
Cable
Electricity Transfer
140
2.1%
H-Beam
Structural steel for civil/construction
244
3.7%
Others
Construction of Pipe and Structure etc.
3,980
60.2%
Logistics
and etc.
Raw Materials
Others
For other use
2,718
100.0%
Rechargeable Battery Materials
Raw Materials
NCM and etc.
Production of cathode materials
5,220
80.1%
Graphite and etc.
Production
of
anode materials
213
3.3%
Limestone and etc.
Production of lime
544
8.3%
Others
Production of refractory
543
8.3%
*
Amount: CIF + customs duties + stevedoring fees + other incidental expenses
22
Table of Contents
B. Price Movement Trends of Major Raw Materials
(Unit: KRW thousand)
Business Segment
Category
2026.1H
2025
2024
Steel
Iron Ore
(per ton)
144
133
135
Coal
(per ton)
355
268
329
Scrap Iron
(per ton)
560
485
505
Nickel
(per ton)
26,636
21,559
22,934
Infrastructure
Trading
LNG
(per ton)
970
944
1,058
Construction
Ready-mixed
Concrete
(per m
3
)
91
88
90
Steel Pile
(per m)
1.2
1.1
1.1
Steel Reinforcement
(per kg)
1.0
0.9
0.9
Cable
(per m)
1.4
1.2
1.0
Rechargeable Battery Materials
Refractory
(per ton)
631
631
443
Limestone
(per ton)
24
25
25
*
Infrastructure (Logistics and associated businesses) and Others segment are omitted because the raw materials
fluctuations defy meaningful measurement. In Rechargeable Battery Materials business, detailed descriptions are omitted to avoid risk of information leakage.
[Steel]
(1) Iron Ore:
Prices fell 2% QoQ to U$95/ton in Q2 2026; rising coking coal and coke prices squeezed steel mill margins and
dampened iron ore demand, while supply from Australia increased.
(Unit: U$/ton)
’26.Q2
’26.Q1
’25.Q4
’25.Q3
’25.Q2
’25.Q1
’24.Q4
’24.Q3
’24.Q2
’24.Q1
95
97
96
92
89
96
94
89
101
113
(2) Coal:
Prices rose 2% QoQ to U$238/ton in Q2 2026 due to tight supply spurred by production setbacks at key Australian
hard coking coal mines and a mining accident in Shanxi, China.
(Unit: U$/ton)
’26.Q2
’26.Q1
’25.Q4
’25.Q3
’25.Q2
’25.Q1
’24.Q4
’24.Q3
’24.Q2
’24.Q1
238
235
200
184
184
185
203
211
242
308
(3) Scrap:
Scrap prices increased by 12% QoQ to U$394/ton in Q2 2026, driven by supply-demand issues resulting from the
Middle East conflict and higher ocean freight rates.
(Unit: U$/ton)
’26.Q2
’26.Q1
’25.Q4
’25.Q3
’25.Q2
’25.Q1
’24.Q4
’24.Q3
’24.Q2
’24.Q1
394
352
344
340
337
342
350
364
376
392
23
Table of Contents
(4) Nickel:
Prices rose 4% QoQ to U$18,131/ton in 1H 2026. Supply chain remained fragile on the back of reduction in
Indonesian nickel production quota and sulfur supply disruptions caused by the Middle East conflict, which was further impacted by mining suspensions in Indonesia following early exhaustion of 2026 quota.
(Unit: U$/lb, U$/ton)
’26.Q2
’26.Q1
’25.Q4
’25.Q3
’25.Q2
’25.Q1
’24.Q4
’24.Q3
’24.Q2
’24.Q1
8.22
7.87
6.75
6.81
6.88
7.06
7.27
7.37
8.35
7.53
18,131
17,356
14,892
15,014
15,171
15,571
16,038
16,259
18,415
16,589
*
LME: London Metal Exchange
[Infrastructure]
(1) Criteria for Calculation
Business
Sector
Products
Criteria for Calculation
Price Changing Factors
Trading
LNG
Average purchase price and LNG direct purchase price of Korea Gas Corporation
Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected
by crude oil, exchange rate, etc.)
Construction
Ready-mixed Concrete
Standard
25-210-15
-
Rebar
SD400 10mm
Higher raw material (scrap) price
H-Beam
SM355A 300*300*10*15 11m
Price hike due to higher domestic demand
Cable
TFR-3,
0.6/1KV, 2.5SQ, 2C
Higher raw material (electric copper) price
[Rechargeable Battery Materials]
(1)
Criteria for Calculation
•
Refractory and lime: Purchase prices including freight costs
(2)
Price Changing Factors
a)
Refractory raw materials: Price fluctuations and compositional costs of raw materials in China
b)
Limestone: Raw material price fluctuation is not extreme, and there are slight variations depending on the
freight cost
c)
Rechargeable Battery Materials: Price trends are not disclosed considering concerns about information leakage
5. Production and Facilities
A. Production Capacity
[Steel]
∎
POSCO
(Unit:
thousand ton)
Business Area
Products
2026.1H
2025
2024
Steel
Crude Steel
19,741
39,810
40,461
24
Table of Contents
∎
POSCO STEELEON
(Unit: thousand ton)
$
$
$
Business Area
Products
Plant
2026.1H
2025
2024
Steel
Galvanized / Color-
coated Steel
Pohang
496
1,000
1,000
Myanmar
34
70
70
Total
530
1,070
1,070
∎
POSCO
M-TECH
(Unit: ton)
$
$
$
Business
Area
Products
2026.1H
2025
2024
Raw materials for steel production
Deoxidizer
19,352
41,005
39,058
[Infrastructure (Trading)]
∎
POSCO INTERNATIONAL
(Unit: MW)
$
$
$
Business Area
Products
2026.1H
2025
2024
Power Generation
Electric Power
Incheon
3,412
3,412
3,412
[Rechargeable Battery Materials]
∎
POSCO FUTURE M
(Unit: ton)
$
$
$
Business Area
Products
Place of Business
2026.1H
2025
2024
Refractory
Brick and etc.
Pohang
57,801
116,560
116,560
LIME
Quicklime
Pohang
543,000
1,095,000
1,095,000
Gwangyang
543,000
1,095,000
1,095,000
Total
1,143,801
2,306,560
2,306,560
*
In the case of the Rechargeable Battery Materials business, detailed notation is omitted in consideration of
technology and information leakage concerns.
25
Table of Contents
B. Production Result and Capacity Utilization Rate
[Steel]
(1) Production
Result
(Unit: thousand ton)
Products
2026.1H
2025
2024
Crude Steel
17,703
38,643
39,281
Products
Hot-Rolled
Steel
5,265
10,724
10,172
Plate
3,220
6,365
6,636
Wire Rod
821
1,594
2,131
Pickled-Oiled Steel
1,407
2,725
2,713
Cold-Rolled Products
3,737
7,365
7,498
Coated Steel
3,420
7,164
7,543
Electrical Steel
557
1,084
998
Stainless Steel
1,104
3,098
3,333
Others
1,180
1,525
1,698
Total
20,711
41,644
42,720
*
The amount of products is the aggregate amount of POSCO’s production and production of POSCO’s
subsidiaries, which may include interested parties’ transactions.
(2) Capacity Utilization Rate (2026.1H)
(Unit: thousand ton)
Company
Capacity
Production
Utilization Rate
Crude Steel  Production
POSCO
19,741
17,703
89.7
%
PT. Krakatau POSCO
1,468
1,479
100.8
%
POSCO Yamato Vina Steel Joint Stock
Company
275
239
86.9
%
Total
21,484
19,421
90.4
%
[Infrastructure (Trading)]
Due to the nature of the business, it is difficult to measure production performance and operating rates for Infrastructure (Construction), and Infrastructure
(Logistics and associated businesses) segments, therefore, the information is omitted in this part.
∎
POSCO INTERNATIONAL
(1) Production Result
(Unit: GWh)
Business Area
Products
Place of Business
2026.1H
2025
2024
Power Generation
Electric Power
Incheon
5,177
10,529
12,193
(2) Capacity Utilization Rate (2026.1H)
(Unit: Hour, %)
Business Area
Production Base
Capacity
Production
Utilization Rate
Power Generation
Incheon Power Plant
4,344
2,430
55.93%
26
Table of Contents
[Rechargeable Battery Materials]
∎
POSCO FUTURE M
(1) Production
Result
(Unit: Ton)
Business Area
Products
Place of Business
2026.1H
2025
2024
Refractory
Brick and etc.
Pohang
35,694
79,417
80,191
LIME
Quicklime
Pohang
561,595
1,088,517
1,055,911
Gwangyang
615,279
1,187,103
1,216,072
Total
1,212,568
2,355,037
2,352,174
*
In the case of the rechargeable battery materials sector, detailed notation is omitted in consideration
of technology and information leakage concerns.
*
As the Hwaseong Plant is operated under a simple consignment arrangement for POSCO facilities, the
information is omitted.
(2) Capacity Utilization Rate (2026.1H)
(Unit: Ton)
Business Area
Capacity
Production
Utilization Rate
Refractory Factory
57,801
35,694
62%
Quicklime Factory (Pohang)
543,000
561,595
103%
Quicklime Factory (Gwangyang)
543,000
615,279
113%
Total
1,143,801
1,212,568
*
In the case of the rechargeable battery materials sector, detailed notation is omitted in consideration
of technology and information leakage concerns.
*
As the Hwaseong Plant is operated under a simple consignment arrangement for POSCO facilities, the
information is omitted.
C. Production Facilities
(1) The current status of production facilities (2026.1H)
[Land]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
2,004,373
140,415
-
-
2,144,788
Infrastructure
Trading
776,528
1,053
(63,475)
-
714,106
Construction
334,781
32,804
(3,233)
-
364,352
Logistics and etc.
59,555
1,050
-
-
60,605
Rechargeable Battery Materials
248,660
1,894
-
-
250,554
Others
262,489
488,809
(2,889)
-
748,409
27
Table of Contents
[Buildings]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
3,303,256
290,744
(1,956)
(190,384)
3,401,660
Infrastructure
Trading
627,798
33,784
(28,706)
(13,051)
619,825
Construction
78,290
12,763
(9,954)
(2,037)
79,062
Logistics and etc.
113,363
5,590
(292)
(5,231)
113,430
Rechargeable Battery Materials
1,556,550
11,582
(291)
(119)
1,567,722
Others
114,583
4,760
(7,705)
(3,102)
108,536
[Structures]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
2,773,749
174,358
(20,507)
(152,621)
2,774,979
Infrastructure
Trading
1,019,221
78,477
(715)
(27,547)
1,069,436
Construction
37,792
9,008
(198)
(3,600)
43,002
Logistics and etc.
81,046
1,462
-
(4,471)
78,037
Rechargeable Battery Materials
364,583
11,193
-
(2,126)
373,650
Others
13,982
421
(707)
(226)
13,470
[Machinery]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
14,437,095
1,584,934
(417,915)
(1,280,247)
14,323,867
Infrastructure
Trading
1,081,085
142,460
(106,463)
(42,025)
1,075,057
Construction
4,758
679
(18)
(799)
4,620
Logistics and etc.
202,628
24,083
(355)
(33,986)
192,370
Rechargeable Battery Materials
2,456,276
126,362
(354)
(11,523)
2,570,761
Others
23,485
5,989
(2,650)
(6,650)
20,174
28
Table of Contents
[Vehicles]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
55,806
26,531
(6,620)
(15,796)
59,921
Infrastructure
Trading
30,807
2,956
(18,679)
(3,886)
11,198
Construction
4,215
1,755
(869)
(913)
4,188
Logistics and etc.
374
3,257
(1,746)
(63)
1,822
Rechargeable Battery Materials
9,382
1,832
(1,746)
(58)
9,410
Others
31
270
-
(278)
23
[Tools and Fixtures]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
61,868
21,661
(6,261)
(19,181)
58,087
Infrastructure
Trading
21,683
7,599
-
(5,332)
23,950
Construction
1,436
765
(572)
(364)
1,265
Logistics and etc.
5,567
1,873
(180)
(1,356)
5,904
Rechargeable Battery Materials
27,670
1,613
(5,461)
(1,258)
22,564
Others
33
2
(3)
-
32
[Equipment]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
114,254
36,188
(5,313)
(27,726)
117,403
Infrastructure
Trading
28,908
4,134
(15,090)
(6,047)
11,905
Construction
5,739
2,728
(735)
(2,076)
5,656
Logistics and etc.
13,289
2,432
(38)
(2,797)
12,886
Rechargeable Battery Materials
38,793
2,293
(1,119)
(1,977)
37,990
Others
18,185
729
(7)
(1,401)
17,506
[Financial Lease Assets]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
107,543
37,991
(43,207)
(45,387)
56,940
Infrastructure
Trading
816,828
141,660
(43,438)
(42,101)
872,949
Construction
58,863
42,348
(34,378)
(17,679)
49,154
Logistics and etc.
269,427
24,997
(1,576)
-
292,848
Rechargeable Battery Materials
103,757
1,847
-
-
105,604
Others
17,909
9,073
(3,398)
(6,460)
17,124
29
Table of Contents
[Biological Assets]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
-
-
-
-
-
Infrastructure
Trading
362,871
5,737
(866)
(15,494)
352,248
Construction
-
-
-
-
-
Logistics and etc.
-
-
-
-
-
Rechargeable Battery Materials
-
-
-
-
-
Others
-
-
-
-
-
[Assets under Construction]
(Unit: KRW million)
Business Segment
Beginning
Book Balance
Increased
Decreased
Depreciation
Ending Book
Balance
Steel
1,796,458
1,273,555
(1,670,960)
-
1,399,053
Infrastructure
Trading
955,410
189,816
(175,615)
-
969,611
Construction
5,141
11,035
(1,702)
-
14,474
Logistics and etc.
48,897
20,118
(4,825)
-
64,190
Rechargeable Battery Materials
4,832,415
703,058
(2,099)
-
5,533,374
Others
503,335
33,991
(485,496)
-
51,830
(2) New Facility Establishment, Purchase, etc. (2026.1H)
•
Investments under Construction
ø
The total duration and investment amount of individual projects with investments in excess of KRW
100 billion have been aggregated on a simple sum basis.
[Steel]
(Unit: KRW hundred million)
Date
Project
Total
Investment
Invested
Amount
Amount to be
Invested
Expansion/
Establishment
October 2020
- February 2030
Revamping of Pohang Coke Oven No. 3 among others
60,544
19,316
41,228
[Infrastructure]
(Unit: KRW hundred million)
Date
Project
Total
Investment
Invested
Amount
Amount to be
Invested
Expansion/
Establishment
May 2022
– June 2027
Gwangyang LNG terminal, etc.
20,226
11,741
8,485
[Rechargeable Battery Materials]
(Unit: KRW hundred million)
Date
Project
Total
Investment
Invested
Amount
Amount to be
Invested
Expansion/
Establishment
March 2020
~ May 2027
Cathode/Anode material factory,
lithium commercialization plant, etc.
74,056
54,167
19,889
30
Table of Contents
6. Product Sales
[Steel]
(Unit: KRW hundred
million)
Items
2026.1H
2025
2024
Domestic
Hot-Rolled
Products
27,966
50,136
52,703
Cold-Rolled Products
23,483
45,883
51,263
Stainless Steel
14,725
26,422
29,493
Others
50,034
91,676
95,180
Overseas
Hot-Rolled
Products
35,895
72,135
72,818
Cold-Rolled Products
76,033
144,832
152,461
Stainless Steel
23,190
71,055
75,395
Others
52,243
91,993
92,696
Total
Gross Sum
303,569
594,132
622,009
Internal Transaction
(115,638
)
(221,283
)
(230,968
)
Total
187,931
372,849
391,041
[Infrastructure]
(Unit: KRW hundred million)
Business
Area
Items
2026.1H
2025
2024
Trading
Domestic
Trading
Merchandise
18,176
34,233
45,670
Product
13,513
27,683
32,545
Others
229
846
1,412
Overseas
Trading
Merchandise
88,342
116,886
118,643
Product
675
1,132
3,881
Others
1,366
243
144
Trades among the 3 countries
114,281
240,748
226,736
Construction
Domestic
Construction
Building
23,035
42,872
49,469
Plant
8,597
20,378
31,427
Others
724
1,807
2,724
Overseas
2,115
3,905
8,777
Own Construction
2,856
6,239
5,899
Logistics and etc.
Others
19,332
33,063
41,393
Total
Gross Sum
293,241
530,035
568,720
Deduction of Internal Transaction
(121,758
)
(233,353
)
(261,735
)
Total
171,483
296,682
306,985
31
Table of Contents
[Rechargeable Battery Materials]
(Unit: KRW hundred million)
Items
2026.1H
2025
2024
Gross Sum
20,307
33,384
38,299
Deduction of Internal Transaction
(8,508)
(12,421)
(10,174)
Total
11,799
20,963
28,125
[Others]
(Unit: KRW hundred million)
Items
2026.1H
2025
2024
Gross Sum
10,250
15,000
21,112
Deduction of Internal Transaction
(10,115)
(14,545)
(20,381)
Total
135
455
730
*
Domestic and overseas categorized by the sales area.
*
Sales of POSCO INTERNATIONAL’s foreign branches are included in ‘trade among the 3
countries’ under Infrastructure (Trading) Segment.
7. Derivatives
POSCO HOLDINGS signed currency swap contracts to hedge against exchange rate risks on foreign currency borrowings. As of June 30, 2026, the Company has
currency swap contracts of USD 400 million (due to mature in May 2030) and USD 300 million (due to mature in May 2035), measured at fair value. The valuation gain on the currency swaps, as reflected in the Company’s financial
statements as of June 30, 2026, amounts to KRW 92.42 billion.
32
Table of Contents
POSCO uses currency swap contracts to hedge against the exchange rate risk on its long-term and short-term
foreign currency borrowings. As of June 30, 2026, the company has currency swap contracts of USD 2.5 billion, measured at fair value. The valuation gain on the currency swaps, as reflected in POSCO’s financial statements as of
June 30, 2026, amounts to KRW 298.484 billion; additionally, associated transaction gain amounts to KRW 30.592 billion.
POSCO also hedges
against exchange rate risk on expected sales revenue and foreign currency borrowings through currency forward contracts. As of June 30, 2026, the company has signed currency forward contracts denominated in USD and THB. The company recognized
valuation gains of KRW 34.324 billion, valuation losses of KRW 2.652 billion, and realized transaction gains of KRW 9.062 billion on these derivatives, reflected in the company’s financial statements as of June 30, 2026.
8. Significant Contracts
(1)
POSCO’s equity investment in an integrated steel mill JV in Odisha, India
a)
Contract Counterparty: Saffron Resources Private Limited
b)
Transaction amount: USD 1,093 million (Total contribution)
c)
Purpose: Equity investment to jointly construct an integrated steel mill in Odisha, India
d)
Contract execution: April 2026 (Board resolution date)
e)
Payment method: Cash payment
ø
Disclosure date: February 24, 2026
•
Decision on Acquisition of Shares or Investment Certificates of Other Corporations (POSCO’s Material
Business Matters to report)
(2)
POSCO’s equity investment to build an electric arc furnace steel mill in Louisiana, USA
a)
Contract Counterparty:
POS-Louisiana
Inc. (tentative)
b)
Transaction amount: USD 582 million (Total contribution)
c)
Purpose: Equity investment to jointly construct an electric arc furnace steel mill in Louisiana, USA
d)
Contract execution: December 2025 (Board resolution date)
e)
Payment method: Cash payment
ø
Disclosure date: December 16, 2025
•
Decision on Acquisition of Shares or Investment Certificates of Other Corporations (POSCO’s Material
Business Matters to report)
(3)
Price Movement Trend of Major Raw Materials
Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2024)
a)
Contract Counterparty: POSCO
b)
Transaction amount: KRW 0.6588 trillion
c)
Purpose: In order to improve the management efficiency of the steel business as a following step of the
vertical
spin-off
on March 2022.
d)
Contract period: December 2024
e)
Payment method: Cash payment
f)
Company subject to transfer: POSCO Maharashtra Steel Private Limited, POSCO India Processing Center Private
Limited, POSCO India Pune Processing Center Private Limited, POSCO ASSAN TST STEEL INDUSTRY Inc
33
Table of Contents
∎
POSCO INTERNATIONAL
(1) Myanmar gas field
Contract
Date
Remarks
Investment
on
the 3
rd
stage
development of
A-1 /
A-3 block
in Myanmar gas
field
September
2020
1)
Investment amount: KRW 365,786,302,000
2)
Development period: September 1, 2019 ~ December 31, 2024
3) Schedule : Installation Completion of
low-pressure
gas compression platform
and commenced operation in 2024
4) Other Information
- Location: North-west offshore,
Myanmar
- This investment is the 3
rd
stage of development, which consists of 3 stages in Myanmar gas field development. The purpose of investment is to maintain current gas production level stably by installing
low-pressure
gas compression platform.
- In the first quarter of 2021, the design and production of the equipment for this work
was started, and it
is planned to start operation in 2024. The “ (2) Development period” above is the period including the basic design progress period, September 2019 to September 2020.
- Participation rate of each company in gas
production and offshore pipeline transportation business
. POSCO INTERNATIONAL Corporation : 51.0%
. ONGC VIDESH(Oil and Natural Gas
Corporation Videsh Limited) : 17.0%
. MOGE(Myanmar Oil and Gas Enterprise): 15.0%
. GAIL (India) Limited : 8.5%
. KOGAS(Korea Gas Corporation): 8.5%
- Investment size of USD
315,170 thousand, applying the exchange rate of 1USD=1,160.60 KRW, which is the date of the Board resolution.
- Detailed information and future timeline on this resource development investment is subject to change.
ø
POSCO INTERNATIONAL disclosure date : September 22, 2020
(Decision on natural resources investment)
Investment
on
the 4
th
stage
development of
A-1 /
A-3 block
in Myanmar gas
field
June
2024
1)
Investment amount: KRW 926,302,200,195
2)
Development period: July 1, 2024 ~ June 30, 2027
3) Future Plan : POSCO INTERNATIONAL plans to drill three additional production wells in two
deep-sea
fields and one additional production well in a
shallow-sea
field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.
4) Other Information
- Location: North-west offshore,
Myanmar
- This investment is the 4
th
stage of development of the existing Myanmar gas field development. The purpose of investment is to drill three additional production wells in two
deep-sea
fields and one additional production well in a
shallow-sea
field and to install processing facilities on subsea pipelines and existing platform.
- With its commencement of development in
July 2024, the gas production expected to begin in the third quarter of 2027.
- Participation rate of each company in gas production and offshore pipeline transportation business
. POSCO INTERNATIONAL Corporation :
51.0%
. KOGAS(Korea Gas Corporation):
8.5%
. ONGC VIDESH(Oil and Natural Gas
Corporation Videsh Limited) : 17.0%
. MOGE(Myanmar Oil and Gas Enterprise): 15.0%
. GAIL (India) Limited : 8.5%
- Investment size of USD 667 million, applying the exchange rate of June 25, 2024 (1USD=1,387.50
KRW).
- Detailed information and future
timeline on this resource development investment is subject to change.
ø
POSCO INTERNATIONAL disclosure date : June 27, 2024
(Decision on natural resources investment)
34
Table of Contents
(2) Acquisition of Shares in PT.PAR, a Palm Oil Company in Indonesia
a)
Purpose: To seek greater synergy in the Indonesian palm business
b)
Payment method: Cash
c)
Contract execution: November 2025 (Board resolution date)
d)
Transaction amount: KRW 1,244,727,212,414
e)
Number of shares held: 1,794,889,157
f)
Shareholding ratio: 98.7%
ø
POSCO INTERNATIONAL disclosure date: February 23, 2026
•
Decision on Acquisition of Shares or Investment Certificates of Other Corporations (Material Business Matters of
Subsidiary Company)
35
Table of Contents
9. Research and Development
A. R&D Expenses (2026.1H)
$
$
$
(Unit: KRW million)
Category
Business Segment
Steel
Infrastructure
Rechargeable
Battery
Materials
Others
Total
Trading
Construction
Logistics
and etc.
Selling and
Administrative Cost
9,367
1,387
2,123
7,933
29,782
56,646
107,238
Manufacturing
Cost
168,472
25
26
-
34
-
168,557
R&D Cost (Intangible
Assets)
14,290
2
306
1,122
3,710
-1,054
18,376
Total*
192,129
1,414
2,455
9,055
33,526
55,592
294,171
Government
Subsidy
-
-
681
-
-
-
681
R&D/Sales Ratio
(%)
1.02%
0.01
%
0.08
%
6.39
%
2.84%
412.04%
0.79%
*
Total includes government subsidy.
B. Research and Development (R&D) Organization (2026.1H)
(Unit: No. of Entities)
Steel
Infrastructure
Rechargeable
Battery
Materials
Others
Total
Trading
Construction
Logistics & etc.
37
11
10
3
4
10
75
36
Table of Contents
III. Financial Statements
1. Consolidated Financial Statements
A. Summary
(Unit: KRW million)
$
$
$
Account
2026.1H
2025
2024
As of June 30, 2026
As of December 31, 2025
As of December 31, 2024
[Total current assets]
45,223,699
43,483,869
44,029,923
Cash and cash equivalents
6,346,928
7,049,800
6,767,898
Other receivables, net
2,224,430
1,920,685
2,261,323
Other short-term financial assets
8,166,052
8,778,584
8,499,389
Trade accounts and notes receivable, net
13,333,112
11,197,974
10,821,619
Inventories
13,967,774
13,624,433
14,143,500
Other current assets
1,185,403
912,393
1,536,194
[Total
non-current
assets]
64,488,945
61,708,569
59,374,276
Other receivables, net
1,474,877
1,635,253
1,306,329
Other long-term financial assets
3,650,214
3,060,842
2,571,651
Investments in associates and
joint ventures
6,318,089
4,980,153
4,738,793
Property, plant and equipment, net
42,893,581
42,292,820
39,846,828
Intangible assets, net
5,880,421
5,493,529
4,774,824
Other
non-current
assets
4,271,763
4,245,972
6,135,851
Total assets
109,712,644
105,192,438
103,404,199
[Total current liabilities]
22,806,896
23,131,654
22,779,719
[Total
non-current
liabilities]
22,742,604
19,683,093
19,174,112
Total liabilities
45,549,500
42,814,747
41,953,831
37
Table of Contents
Account
2026.1H
2025
2024
[Equity attributable to owners of the controlling company]
57,465,538
55,730,185
55,394,231
Share capital
482,403
482,403
482,403
Capital surplus
1,528,038
1,685,116
1,648,894
Retained earnings
53,646,915
53,177,472
53,658,368
Other equity attributable to owners of the controlling company
1,808,182
385,194
(395,434
)
[Non-controlling
Interests]
6,697,607
6,647,506
6,056,137
Total equity
64,163,144
62,377,691
61,450,368
From January 1, 2026
to June 30, 2026
From January 1, 2025
to December 31, 2025
From January 1, 2024
to December 31, 2024
Revenue
37,134,791
69,094,886
72,688,143
Operating profit
1,525,845
1,827,063
2,173,573
Profit
1,304,704
504,403
947,580
[Profit attributable to owners of the controlling company]
1,151,960
657,654
1,094,917
[Profit attributable to
non-controlling
interests]
152,744
(153,251
)
(147,337
)
Total comprehensive income
2,548,642
923,026
2,110,358
[Total comprehensive income attributable to owners of the controlling company]
2,204,056
1,032,628
2,008,919
[Total comprehensive income attributable to
non-controlling
interests]
344,586
(109,602
)
101,439
Earnings per share (KRW)
15,233
8,697
14,451
Number of Consolidated Companies
200
199
194
38
Table of Contents
B. The Standards Used for Reporting the Financial Statements
The Company prepared its financial statements in accordance with the Korean-International Financial Reporting Standards (the
“K-IFRS”)
and applied it to each Company’s final financial statements.
2. Separate Financial
Statements
A. Summary
(Unit: KRW
million)
$
$
$
Account
2026.1H
2025
2024
As of June 30, 2026
As of December 31, 2025
As of December 31, 2024
[Total current assets]
4,678,457
3,945,123
3,793,469
Cash and Cash equivalents
240,948
184,416
409,387
Trade accounts and notes receivable, net
123,112
157,668
178,822
Other receivables, net
177,801
146,146
21,388
Other short-term financial assets
4,134,179
3,454,794
2,686,420
Inventories
-
-
467,796
Other current assets
2,417
2,099
29,656
[Total
non-current
assets]
47,744,317
47,870,462
46,840,329
Other receivables, net
29,718
17,414
14,894
Other long-term financial assets
599,131
506,736
421,822
Investments in Subsidiaries, associates, and joint ventures
46,042,080
46,290,252
45,631,965
Property, plant and equipment, net
728,784
703,140
415,993
Intangible assets, net
30,079
29,659
21,461
Other
non-current
assets
314,525
323,261
334,194
Total assets
52,422,774
51,815,585
50,633,797
[Total current liabilities]
327,665
245,628
162,831
[Total
non-current
Liabilities]
3,734,760
3,631,688
2,281,936
Total liabilities
4,062,425
3,877,316
2,444,768
39
Table of Contents
Account
2026.1H
2025
2024
Share capital
482,403
482,403
482,403
Capital surplus
1,367,990
1,367,990
1,367,990
Retained earnings
47,371,447
47,310,066
47,952,144
Other equity
(861,491
)
(1,222,190
)
(1,613,507
)
Total equity
48,360,349
47,938,269
48,189,030
From January 1, 2026
to June 31, 2026
From January 1, 2025
to December 31, 2025
From January 1, 2024
to December 31, 2024
Revenue
964,879
1,403,310
1,997,128
Operating profit
751,039
976,825
1,596,420
Profit
776,320
494,878
1,621,282
Earnings per share (KRW)
10,266
6,544
21,398
B. The Standards Used for Reporting the Financial Statements
The company prepared its financial statements in accordance with the Korean - International Financial Reporting Standards (the
“K-IFRS”).
40
Table of Contents
IV. CORPORATE GOVERNANCE
1. Overview of Corporate Governance
A. Board of
Directors
(1) Board of Directors (Board)
The Board consists of four inside directors (CHANG, In Hwa/ LEE, Ju Tae/ CHUNG, Seok Mo/ KIM, Ki Soo), seven independent directors
(KWON, Tae-Kyun/ YOO, Young Sook/ YOO, Jin Nyong/ SOHN, Sung Kyu/ KIM, Joon Gi/ PARK, Sung Wook) and 1 other
non-executive
director (LEE, Hee Geun).
The Board manages six Special Committees:
a) ESG Committee
b) Director
Candidate Recommendation Committee
c) Evaluation and Compensation Committee
d) Finance Committee
e) Audit
Committee and
f) CEO Candidate Pool Management Committee
41
Table of Contents
(2) Composition of the Special Committees under the Board and their functions (as of August 14, 2026)
Category
Composition
Directors
Major Functions
ESG
Committee
3 Independent
Directors,
1 Inside
Director
KIM, Joongi  (Chairman)
YOO, Young Sook
KWON,
Tae-Kyun
CHUNG, Seok Mo
•  Agenda
1. Matters related to the operation of the Board and the Special Committees
a) Development of agenda proposal and
establishment of the operating standards of the Board and the special committees
b) Prior deliberation on revision or repeal of the Operating Rules for the Board of Directors
c) Prior deliberation of the composition
and operation of the Board’s Special Committees
2. ESG-related
implementation monitoring and report publication
3. Deliberation and resolution of donations
in the amount of KRW 100 million to KRW 1 billion and prior deliberation on donations over KRW 1 billion
4. Deliberation and resolution on the following transactions with the largest shareholder of the Company as
defined under the Commercial Act and such related party, where the transaction amount is less than KRW 200 billion, and prior deliberation for transactions of KRW 200 billion or more:
a) A single transaction whose amount is
equal to or greater than 1/100 of the Company’s total assets or total revenue as of the end of the most recent fiscal year.
b) A transaction where the aggregate transaction amount with a specific counterparty during the relevant fiscal
year, including the relevant transaction, is equal to or greater than 5/100 of the Company’s total assets or total revenue as of the end of the most recent fiscal year.
5. Internal transactions under Monopoly Regulation and Fair Trade Act (The act of providing or trading funds,
securities, or assets with related party as business counterpart or for related party)
a) Review of internal transaction-related issues and improvement measures
b) Prior deliberation on internal
transactions (Amount KRW 200 billion or more)
c) Deliberation and resolution of internal transactions (between KRW 10 billion and KRW 200 billion)
6. Appointment of the Fair Trade Compliance
Officer.
•  Reported
Items
1. Key ESG issues of
affiliates
2. Matters concerning the
execution of internal transactions (between KRW 5 billion and KRW 10 billion)
42
Table of Contents
Director
Candidate
Recommendation
Committee
3 Independent
Directors
SOHN, Sung Kyu
(Chairman)
YOO, Jin Nyong
KIM, Joongi
•
Agenda
1. Qualification review of Independent Director candidates and making recommendation to the GMoS
2. Preliminary review and qualification review
of Inside Director candidates
3. Prior
deliberation on appointment of members of the special committees
4. Prior deliberation of the appointment of Representative Directors other than the Representative Director and
CEO
5. Operation of the Independent
Director Candidate Recommendation Advisory Panel
6. Other matters necessary for recommending Independent Director candidates
Evaluation and
Compensation
Committee
4 Independent
Directors
YOO, Young Sook
(Chairman)
YOO, Jin Nyong
PARK, Sung Wook
KIM, Jooyoun
•
Agenda
1. Implementation of the executive performance evaluation and compensation plan
2. Prior deliberation on the executive
performance evaluation and compensation plan
3. Prior deliberation on the remuneration and retirement allowance for
Directors
43
Table of Contents
Finance
Committee
3 Independent
Directors;
1 Inside Director
KWON, Tae-Kyun
(Chairman)
PARK, Sung Wook
KIM, Jooyoun
LEE, Ju Tae
•
Agenda
1. Policy development to foster sound internal corporate value and finances
2. Prior deliberation of filings for litigation
or arbitration, or formulation of responses to reconciliation or trial mediation, or any equivalent legal actions in the amount of KRW 100 billion or more
3. Regarding investment activities
a) Prior deliberation on new investments (KRW 100 billion or more. Investment and capital increase includes
borrowings and liabilities that the company assumes)
b) Prior deliberation on existing investments (KRW 200 billion or more. Investment and capital increase includes
borrowings and liabilities that the company assumes)
c) Approval of new investments (more than KRW 50 billion and less than KRW 100 billion. Investment and
capital increase includes borrowings and liabilities that the company assumes)
d) Approval of existing investments (between KRW 100 billion and KRW 200 billion. Investment and capital
increase includes borrowings and liabilities that the company assumes)
e) Preliminary deliberation on the acquisition and disposal of tangible and intangible fixed assets and important
investment assets (in excess of KRW 200 billion, based on book value per unit of investment assets)
4. Deliberation and resolution on bond issuance and important borrowings (including refinancing borrowings exceeding
KRW 100 billion)
5. Prior deliberation on
bond issuance and important borrowings (new long-term borrowings exceeding KRW 100 billion)
6. Prior deliberation on the delegation of authority to the CEO for bond issuance exceeding KRW 100 billion, and
deliberation of and resolution on the delegation of authority to the CEO for bond issuance of KRW 100 billion or less. (for predetermined amount and type of bonds, and with a maturity period not exceeding one year)
7. Deliberation and resolution on offering
non-current
assets as collateral
8. Deliberation of and resolution on the assumption of liabilities, including collateral and guarantees, for invested
companies for amounts under KRW 200 billion, and prior deliberation for such assumption of KRW 200 billion or more.
44
Table of Contents
Audit
Committee
3 Independent
Directors
PARK, Sung Wook
(Chairman)
KIM,
Joongi
SOHN, Sung Kyu
•
Agenda
1. Defining the work scope of the committee
2. Matters delegated by the Board or
Representative Directors
3. Request for
Extraordinary GMoS
4. Consulting of
external experts
5. Audit of the
legitimacy of management’s business execution
6. Review of the soundness and validity of the Company’s financial activities and the appropriateness of
the financial reporting
7. Review of
the validity of important accounting standards or changes in accounting estimates
8. Evaluation of the operation status of the internal accounting management system
9. Evaluation of the internal control
system
10. Agreement on appointment or
dismissal of the internal audit department representative
11. Contract for appointment, remuneration and
non-audit
services of
independent auditors
12. Evaluation of
independent auditors’ audit activities
13. Report internal audit department’s annual audit plan and results
14. Report on the evaluation results of the
Company’s ethical compliance
15. An independent auditor reports on important facts of the Company’s Directors’ misconduct or
actions in violation of laws or the Articles of Incorporation
16. Report that independent auditors have violated the Company’s accounting standards
17. Enactment, amendment, or repeal of
internal accounting management regulations
18. Other items deemed necessary by each committee member
CEO Candidate
Pool Management
Committee
6 Independent
Directors
(all)
YOO, Jin Nyong
(Chairman)
YOO, Young Sook
KWON, Tae-Kyun
SOHN, Sung Kyu
KIM, Joongi
PARK, Sung Wook
KIM, Jooyoun
•
Agenda
1. Prior deliberation on the basic qualifications of CEO candidates as defined by the Board of Directors
2. Pooling results of CEO candidates
3. CEO candidate development plans
•
Reported
Items
1. Results of the development of the CEO candidate
pool
45
Table of Contents
(3) List of Key Activities of the Board of Directors
•
January 1, 2026 ~ March 19, 2026
No.
Date
Agenda
Approval
2026-1
February 3
1. The 58th Operations Report and Financial Statements and the schedule for the Annual General Meeting of
Shareholders (AGM)
•
Reported
items
-  2025
consolidated business performance
-  2025 ICFR operational status
-  2025 evaluation of the ICFR operational status
Approved
-
2026-2
February 19
1. Recommendation of inside director and other
non-executive
director
candidates
2. Partial amendment to the
Articles of Incorporation
3. Agenda
items for the 58th AGM
4. Cancellation
of treasury shares, and treasury shares report
5. Improvements to board operations and amendment of relevant rules
•
Reported
items
-  Implementation of Board-approved agenda items in 2025
Approved
Approved
Approved
Approved
Approved After  Amendment
-
•
March 24, 2026 ~ June 30, 2026
No.
Date
Agenda
Approval
2026-3
March 24
1. Appointment of the Chair of the Board
2. Appointment of Representative
Director
3. Appointment of Board
Committee members
Approved
Approved
Approved After  Amendment
2026-4
April 3
1. Borrowing of Government Policy Funds
•
Reported
items
-  Mid-term
shareholder return policy
-  Implementation of Board-approved agenda items in 2025
Approved
2026-5
May 12
1. Dividend payment for Q1 2026
2. Investment in DLE Demo Plant
3. Payment guarantee for POSCO—Argentina
4. Construction contract for POSCO Global
Center main building
5. Limit to
aggregate transaction with POSCO
•
Reported
items
-  Business
performance of the group in Q1 2026
-  Update on the integrated steel mill JV in India
-  2024 Board activities and
evaluation results
-  Evaluation
of Independent Director activities and utilization of the results
-  Implementation of Board-approved agenda items
Approved
Approved
Approved
Approved
Approved
*
At the 58th Annual General Meeting of Shareholders held on March 24, 2026, Inside Director CHUN Sung
Lae retired upon the expiration of his term. The shareholders elected KIM Jooyoun as a new Independent Director, CHUNG Seok Mo as an Inside Director, and LEE Hee Geun as a
Non-executive
Director. Additionally, Independent Director KIM Joongi and Inside Directors LEE Ju Tae and KIM Ki Soo were
re-elected.
46
Table of Contents
•
July 1, 2026 ~ August 14, 2026
No.
Date
Agenda
Approval
2026-6
August 7
1. Dividend payment for Q2 2026
2. Disposal of equity stakes in a listed subsidiary
3. Treasury shares report
•
Reported
Items
-  Business
performance of the group in Q2 2026
-  Update and proposed plan for the group’s new business initiatives
-  Implementation of Board-approved
agenda items
Approved
Approved
Approved
(4) Key Activities of Independent Directors
•
January 1, 2026 ~ August 14, 2026
No.
Date
Independent Director Attendance
(Total Independent Directors)
Remarks
2026-1
February 3
6 (6)
-
2026-2
February 19
6 (6)
-
2026-3
March 24
7 (7)
-
2026-4
April 3
7 (7)
-
2026-5
May 12
7 (7)
-
2026-6
August 7
7 (7)
-
(5) Special Committees under the Board and their Activities
•
ESG Committee (January 1, 2026 ~ March 23, 2026)
Date
Agenda
Approval
January 22,
2026
•
Reported
items
-  Review
outcomes on the possibility of recognition and use of emission reduction at PT.BIA as carbon credits in Korea
-  Measures to improve operating companies’ ESG disclosure indices
-
February 13,
2026
1. Improvements to Board operations and amendment of relevant rules
•
Reported
items
-  2026 POSCO
group consolidated ESG management action plan
-  2026 POSCO group human rights management action plan
Deliberated
•
ESG Committee (March 24, 2026 ~ June 30, 2026)
Date
Agenda
Approval
May 7,
2026
1. Publication of
the 2025 Sustainability Report
2. Endowment to POSCO Educational Foundation
3. Payment guarantee for POSCO
Argentina
4. Construction contract for
POSCO Global Center main building
•
Reported
items
-  Q1 2026
consolidated ESG performance
Approved
Approved
Deliberated
Deliberated
•
ESG Committee (July 1, 2026 ~ August 14, 2026)
Date
Agenda
Approval
August 3,
2026
•
Reported
items
-  Q2 2026
consolidated ESG performance
-  Update on self-directed fair trade CP practices for 1H 2026
-
47
Table of Contents
•
Director Candidate Recommendation and Management Committee (January 1, 2026~March 23, 2026)
Date
Agenda
Approval
February 19,
2026
1. Recommendation
of independent director candidates
2. Qualification review of inside director candidates
3. Appointment of 2026 Board Committee
members
Approved
Deliberated
Deliberated
•
Director Candidate Recommendation and Management Committee (March 24, 2026 ~ June 30, 2026)
Date
Agenda
Approval
March 24,
2026
1. Appointment
of the Representative Director
Deliberated
•
Director Candidate Recommendation and Management Committee (July 1, 2026 ~ August 14, 2026)
Date
Agenda
Approval
August 7,
2026
1. Operation of
the Independent Director Candidate Recommendation Advisory Panel
Approved
•
Evaluation and Compensation Committee (January 1, 2026 ~ March 23, 2026)
Date
Agenda
Approval
February 4,
2026
1. 2025
group-wide business performance assessment
Approved
•
Finance Committee (March 24, 2026 ~ June 30, 2026)
Date
Agenda
Approval
April 3,
2026
1. Borrowing of Government Policy Funds
Deliberated
May 6,
2026
1. Investment in DLE Demo Plant
2. Payment guarantee for POSCO-Argentina
Deliberated
Deliberated
•
Finance Committee (July 1, 2026 ~ August 14, 2026)
Date
Agenda
Approval
August 3,
2026
1. Disposal of
equity stakes in a listed subsidiary
Deliberated
48
Table of Contents
•
CEO Candidate Pool Management Committee (March 24, 2026 ~ June 30, 2026)
Date
Agenda
Approval
May 8,
2026
1. Result of
candidates pooled for the Representative Director & CEO position
2. 2026 development plan to groom internal CEO candidate pool
Approved
Approved
B. Audit Committee
(1)
Composition of the Audit Committee
Name
Qualifications
Remarks
Park, Sung Wook
Kim, Joongi
Sohn, Sung Kyu*
Satisfiesthe
requirements stipulated in the Korean Commercial Act
Chair
-
-
*
SOHN,
Sung-Kyu
is an accounting and financial expert
(2) Major Activities of the Audit Committee
•
January 1, 2026 ~ March 23, 2026
Session
Date
Agenda
Approval
2026-1
February 2,  2026
1. 2025 evaluation of ICFR operational status
2. Authorization of audit and
non-audit
service agreements for POSCO Holdings and its consolidated entities
3. 2025 Audit Committee activities
•
Reported
items
-  2025 ICFR
operational status
Approved
Approved
Approved
2026-2
February 26,  2026
1. Authorization of
non-audit
service agreement for POSCO
2. 2025
year-end
consolidation internal audit result
3. 2025 internal audit performance and 2026 plan
4. Deliberation on AGM agenda items
•
Reported
items
-  2025
year-end
consolidation external audit result
Approved
Approved
Approved
Approved
•
March 24, 2026 ~ June 30, 2026
Session
Date
Agenda
Approval
2026-3
March 24,
2026
1. Appointment of the Chair of the Audit Committee
Approved
2026-4
April 24,
2026
1. Internal audit results of the Q1 2026 consolidated financial statements
•
Reported
items
-  Plan for the
2026 ICFR Operational Status Review
-  Updates on the 2025
20-F
audit and the external review of Q1
2026 consolidated financial statements
Approved
-
49
Table of Contents
•
July 1, 2026 ~ August 14, 2026
Session
Date
Agenda
Approval
2026-5
August 11
2026
1. Internal audit result of the Q2 2026 consolidated financial statements
2. Assessment result of external auditor
activities for 2025
3. External auditor
selection criteria
4. 1H 2026 internal
audit results and 2H 2026 plans
•
Reported
items
-  Assessment
results of the 2026 ICFR design
-  External review results for the Q2 2026 consolidated financial statements
Approved
Approved
Approved
Approved
C. Voting Rights of Shareholders
(1)
The Cumulative Voting System: The cumulative voting system was introduced at the 36th General Meeting of
Shareholders on March 12, 2004.
(2)
The Electronic Voting System: The electronic voting system was determined at the Board of Directors meeting on
February 20, 2019.
D. Compensation of Directors and Officers
(1)
The Salary of Directors and Audit Committee Members
(Unit: KRW million)
Category
Fiscal Year
No. of people
Total payment
Average payment
(Per person)
Inside Director
(Excluding
Independent
Director, Audit Committee
Member)
2026.1H
5
2,818
720
2025
4
5,246
1,338
2024
4
5,431
1,306
Independent Director
(Excluding
Audit Committee
Members)
2026.1H
4
193
55
2025
3
326
109
2024
3
422
125
Audit Committee
Members
2026.1H
3
160
53
2025
3
331
110
2024
3
394
128
ø
No. of people: The number of directors and the Audit Committee members in office as of June 30, 2026,
December 31, 2025, and December 31, 2024
ø
Total payment: The total amount of remuneration paid to all directors and Audit Committee members who served
during the period (includes directors who retired during the year)
ø
Average payment per person: The sum of average payment per director during the period
50
Table of Contents
POSCO HOLDINGS INC.
and its subsidiaries
Interim condensed consolidated financial statements
for each of the six-month periods ended June 30, 2026 and 2025
with the independent auditor’s review report
Table of Contents
Table of Contents
Report on review of interim condensed consolidated financial statements
Page
Interim condensed consolidated financial statements
Interim condensed consolidated statements of financial
position
1
Interim condensed consolidated statements of comprehensive
income
3
Interim condensed consolidated statements of changes in
equity
4
Interim condensed consolidated statements of cash flows
6
Notes to the interim condensed consolidated financial
statements
8
Table of Contents
EY Han Young
2-3F, 7-8F, Taeyoung Building, 111,
Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea
Tel: +82 2 3787 6600
Fax: +82 2 783 5890
ey.com/kr
Report on review of interim condensed consolidated financial statements
(English translation of a report originally issued in Korean)
The Stockholders and Board of Directors
POSCO
HOLDINGS INC.
We have reviewed the accompanying interim condensed consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries
(collectively referred to as the “Group”), which comprise the interim condensed consolidated statement of financial position as of June 30, 2026, and the related interim condensed consolidated statements of comprehensive income or
loss for each of the three-month and
six-month
periods ended June 30, 2026 and 2025, interim condensed consolidated statements of changes in equity and interim condensed consolidated statements of cash
flows for each of the
six-month
periods ended June 30, 2026 and 2025, and a summary of material accounting policy information and other explanatory information.
Management’s responsibility for the interim condensed consolidated financial statements
Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International
Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034
Interim Financial Reporting
, and for such internal control as management determines is necessary to enable the preparation of interim financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures
Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSA”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are
not prepared, in all material respects, in accordance with KIFRS 1034
Interim Financial Reporting
.
Table of Contents
Other matters
We have audited the consolidated statement of financial position of the Group as of December 31, 2025, and the related consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 11, 2026 expressed an unqualified
opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2025, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial
position.
August 14, 2026
This review report is effective as of August 14, 2026, the independent auditor’s review report date. Accordingly,
certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect
the accompanying interim condensed consolidated financial statements and may result in modification to this review report.
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated financial statements
for each of the six-month periods ended June 30, 2026 and 2025
“The accompanying interim condensed consolidated financial statements, including all footnotes and
disclosures, have been prepared by, and are the responsibility of, the Group.”
Ju Tae Lee
Representative Director & President
POSCO HOLDINGS INC.
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of financial position
as of June 30, 2026 (Unaudited) and December 31, 2025
(in millions of Won)
Notes
June 30, 2026
(unaudited)
December 31,
2025
Assets
Cash and cash equivalents
21
W
6,346,928
7,049,800
Trade accounts and notes receivable, net
4,15,21,25,26,33
13,333,112
11,197,974
Other receivables, net
5,21,33
2,224,430
1,920,685
Other short-term financial assets
6,21
8,166,052
8,778,584
Inventories
7
13,967,774
13,624,433
Current income tax assets
92,500
78,704
Assets held for sale
8
8,279
20,167
Other current assets
14
1,084,624
813,522
Total current assets
45,223,699
43,483,869
Long-term trade accounts and notes receivable, net
4,21
16,528
19,708
Other receivables, net
5,21,33
1,474,877
1,635,253
Other long-term financial assets
6,21
3,650,214
3,060,842
Investments in associates and joint ventures
9
6,318,089
4,980,153
Investment property, net
11
1,727,088
1,691,625
Property, plant and equipment, net
12
42,893,581
42,292,820
Intangible assets, net
13
5,880,421
5,493,529
Defined benefit assets, net
19
278,152
360,112
Deferred tax assets
31
2,043,319
2,038,844
Other
non-current
assets
14
206,676
135,683
Total
non-current
assets
64,488,945
61,708,569
Total assets
W
109,712,644
105,192,438
(continued)
1
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of financial position, continued
as of June 30, 2026 (Unaudited) and December 31, 2025
(in millions of Won)
Notes
June 30, 2026
(unaudited)
December 31,
2025
Liabilities
Trade accounts and notes payable
21,33
W
5,514,721
5,106,921
Short-term borrowings and current installments of long-term borrowings
15,21
11,107,218
12,117,422
Other payables
16,21,33
3,450,986
3,406,505
Other short-term financial liabilities
17,21
67,700
66,623
Current income tax liabilities
275,489
223,666
Liabilities directly associated with the assets held for sale
8
—
3,678
Provisions
18
573,651
632,644
Other current liabilities
20,25,26
1,817,131
1,574,195
Total current liabilities
22,806,896
23,131,654
Long-term borrowings, excluding current installments
15,21
19,296,704
16,374,578
Other payables
16,21
1,300,341
1,237,358
Other long-term financial liabilities
17,21
93,813
91,068
Defined benefit liabilities, net
19
89,415
63,189
Deferred tax liabilities
31
1,185,666
1,159,973
Long-term provisions
18
671,764
650,329
Other
non-current
liabilities
20
104,901
106,598
Total
non-current
liabilities
22,742,604
19,683,093
Total liabilities
45,549,500
42,814,747
Equity
Share capital
22
482,403
482,403
Capital surplus
22
1,528,038
1,685,116
Other components of equity
23
2,609,952
1,561,510
Treasury shares
24
(801,771
)
(1,176,317
)
Retained earnings
53,646,915
53,177,472
Equity attributable to owners of the controlling company
57,465,537
55,730,184
Non-controlling
interests
6,697,607
6,647,507
Total equity
64,163,144
62,377,691
Total liabilities and equity
W
109,712,644
105,192,438
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
2
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of comprehensive income
for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 (Unaudited)
For the three-month period
ended June 30
(unaudited)
For the
six-month
period
ended June 30
(unaudited)
(in millions of Won, except per share information)
Notes
2026
2025
2026
2025
Revenue
25,26,33
W
19,258,684
17,555,587
37,134,791
34,992,363
Cost of sales
26,30
(17,599,341
)
(16,170,232
)
(33,959,035
)
(32,271,130
)
Gross profit
1,659,343
1,385,355
3,175,756
2,721,233
Selling and administrative expenses
21,27,30
Other administrative expenses
(783,904
)
(708,693
)
(1,535,652
)
(1,424,276
)
Selling expenses
(56,425
)
(69,490
)
(114,258
)
(121,344
)
Operating profit
819,014
607,172
1,525,846
1,175,613
Share of profit of equity-accounted investees, net
9
72,428
87,516
163,838
152,800
Finance income and costs
21,28
Finance income
795,006
1,264,053
2,323,603
2,068,732
Finance costs
(1,040,822
)
(1,591,099
)
(2,633,377
)
(2,539,259
)
Other
non-operating
income and expenses
21,29,30
Other
non-operating
income
553,186
50,657
691,504
183,521
Other
non-operating
expenses
(287,708
)
(190,617
)
(403,700
)
(303,767
)
Profit before income tax
911,104
227,682
1,667,714
737,640
Income tax expense
31
(149,789
)
(143,836
)
(363,010
)
(309,559
)
Profit
761,315
83,846
1,304,704
428,081
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method
(34
)
1
2,881
(5,625
)
Foreign currency translation differences
(18,082
)
(163,610
)
176,921
(156,603
)
Remeasurements of defined benefit plans
19
5,609
5,602
11,099
4,938
Net changes in fair value of equity investments at fair value through other comprehensive
income
21
(67,148
)
(25,164
)
44,943
14,111
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method
102,561
(218,578
)
368,182
(217,283
)
Foreign currency translation differences
79,735
(596,783
)
639,154
(566,825
)
Gains or losses on valuation of derivatives
21
733
(133
)
759
(259
)
Other comprehensive income (loss), net of tax
103,374
(998,665
)
1,243,939
(927,546
)
Total comprehensive income (loss)
W
864,689
(914,819
)
2,548,643
(499,465
)
Profit attributable to:
Owners of the controlling company
W
684,754
159,865
1,151,960
462,161
Non-controlling
interests
76,560
(76,019
)
152,744
(34,080
)
Profit
W
761,314
83,846
1,304,704
428,081
Total comprehensive income attributable to:
Owners of the controlling company
W
800,271
(668,060
)
2,204,056
(298,224
)
Non-controlling
interests
64,418
(246,759
)
344,586
(201,241
)
Total comprehensive income (loss)
W
864,689
(914,819
)
2,548,642
(499,465
)
Earnings per share (in Won)
32
Basic earnings per share (in Won)
9,055
2,114
15,233
6,112
Diluted earnings per share (in Won)
W
9,055
2,114
15,233
6,112
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
3
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of changes in equity
for each of the six-month periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
Attributable to owners of the controlling company
Share
capital
Capital
surplus
Other
components
of equity
Treasury
shares
Retained
earnings
Subtotal
Non-
controlling
interests
Total
Balance as of January 1, 2025
W
482,403
1,648,894
1,155,429
(1,550,862
)
53,658,368
55,394,232
6,056,136
61,450,368
Comprehensive income:
Profit for the period
—
—
—
—
462,161
462,161
(34,080
)
428,081
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax
—
—
—
—
5,353
5,353
(415
)
4,938
Capital adjustment arising from investments in equity-accounted investees, net of tax
—
—
(212,037
)
—
—
(212,037
)
(10,871
)
(222,908
)
Net changes in fair value of equity investments at fair value through other comprehensive income,
net of tax
—
—
12,916
—
467
13,383
728
14,111
Foreign currency translation differences, net of tax
—
—
(566,824
)
—
—
(566,824
)
(156,603
)
(723,427
)
Gains or losses on valuation of derivatives, net of tax
—
—
(259
)
—
—
(259
)
—
(259
)
Total comprehensive income
—
—
(766,204
)
—
467,981
(298,223
)
(201,241
)
(499,464
)
Transactions with owners of the controlling company, recognized directly in
equity:
Year-end
dividends
—
—
—
—
(189,052
)
(189,052
)
(102,372
)
(291,424
)
Interim dividends
—
—
—
—
(189,052
)
(189,052
)
—
(189,052
)
Changes in the scope of consolidation
—
—
—
—
—
—
5,000
5,000
Changes in ownership interest in subsidiaries
—
(34,967
)
—
—
—
(34,967
)
156,631
121,664
Retirement of treasury shares
—
—
—
374,545
(374,545
)
—
—
—
Others
—
(8,422
)
—
—
(7,890
)
(16,312
)
9,121
(7,191
)
Total transactions with owners of the controlling company
—
(43,389
)
—
374,545
(760,539
)
(429,383
)
68,380
(361,003
)
Balance as of June 30, 2025 (Unaudited)
W
482,403
1,605,505
389,225
(1,176,317
)
53,365,810
54,666,626
5,923,275
60,589,901
(continued)
4
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of changes in equity, continued
for each of the six-month periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
Attributable to owners of the controlling company
Total
Share
capital
Capital
surplus
Other
components
of equity
Treasury
shares
Retained
earnings
Subtotal
Non-
controlling
interests
Balance as of January 1, 2026
W
482,403
1,685,116
1,561,510
(1,176,317
)
53,177,472
55,730,184
6,647,507
62,377,691
Comprehensive income:
Profit for the period
—
—
—
—
1,151,960
1,151,960
152,744
1,304,704
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax
—
—
—
—
5,086
5,086
6,012
11,098
Capital adjustment arising from investments in equity-accounted investees, net of tax
—
—
362,210
—
—
362,210
8,853
371,063
Net changes in fair value of equity investments at fair value through other comprehensive income,
net of tax
—
—
45,457
—
(571
)
44,886
57
44,943
Foreign currency translation differences, net of tax
—
—
639,154
—
—
639,154
176,921
816,075
Gains or losses on valuation of derivatives, net of tax
—
—
759
—
—
759
—
759
Total comprehensive income
—
—
1,047,580
—
1,156,475
2,204,055
344,587
2,548,642
Transactions with owners of the controlling company, recognized directly in
equity:
Year-end
dividends
—
—
—
—
(189,052
)
(189,052
)
(77,028
)
(266,080
)
Interim dividends
—
—
—
—
(151,242
)
(151,242
)
—
(151,242
)
Changes in the scope of consolidation
—
—
—
—
—
—
(16,707
)
(16,707
)
Changes in ownership interest in subsidiaries
—
(155,120
)
—
—
—
(155,120
)
(228,885
)
(384,005
)
Retirement of treasury shares
—
—
—
374,546
(374,546
)
—
—
—
Others
—
(1,958
)
862
—
27,808
26,712
28,133
54,845
Total transactions with owners of the controlling company
—
(157,078
)
862
374,546
(687,032
)
(468,702
)
(294,487
)
(763,189
)
Balance as of June 30, 2026 (Unaudited)
W
482,403
1,528,038
2,609,952
(801,771
)
53,646,915
57,465,537
6,697,607
64,163,144
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
5
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of cash flows
for each of the
six-month
periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
Notes
for the six-month
period ended
June 30, 2026
(Unaudited)
for the six-month
period ended
June 30, 2025
(Unaudited)
Cash flows from operating activities
Profit for the period
W
1,304,704
428,081
Adjustments for:
Depreciation
1,889,359
1,818,192
Amortization
253,386
221,053
Finance income
(1,430,672
)
(1,312,039
)
Finance costs
1,671,174
1,536,247
Income tax expense
363,010
309,559
Impairment loss on property, plant and equipment
123,508
113,159
Gain on disposal of property, plant and equipment
(2,465
)
(22,018
)
Loss on disposal of property, plant and equipment
65,202
53,034
Impairment loss on goodwill and other intangible assets
5,703
25,678
Gain on disposal of investments in subsidiaries, associates and joint ventures
(480,032
)
(24,973
)
Loss on disposal of investments in subsidiaries, associates and joint ventures
99,071
752
Share of profit of equity-accounted investees
(163,838
)
(152,800
)
Impairment loss on disposal of assets held for sale
—
831
Gain on disposal of assets held for sale
(9,788
)
(52,148
)
Loss on disposal of assets held for sale
—
653
Expenses related to post-employment benefit
136,095
129,051
Impairment loss on trade and other receivables
51,517
53,043
(Reversal of) Loss on valuation of inventories
(54,316
)
(39,259
)
Increase (decrease) to provisions
40,888
77,129
Gain on insurance claim
(12,850
)
(1,884
)
Others, net
44,081
(7,347
)
2,589,033
2,725,913
Changes in operating assets and liabilities
35
(2,682,615
)
(132,462
)
Interest received
278,753
206,075
Interest paid
(575,447
)
(497,113
)
Dividends received
127,127
247,074
Income taxes paid
(332,935
)
(544,806
)
Net cash provided by operating activities
W
708,620
2,432,762
(continued)
6
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Interim condensed consolidated statements of cash flows, consolidated
for each of the
six-month
periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
Notes
for the six-month
period ended
June 30, 2026
(Unaudited)
for the six-month
period ended
June 30, 2025
(Unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments
W
(9,960,400)
(9,248,078)
Proceeds from disposal of short-term financial instruments
10,075,763
8,034,242
Increase in loans
(242,537)
(150,960)
Collection of loans
300,428
23,516
Acquisitions of securities
(197,633
)
(620,313
)
Proceeds from disposal of securities
615,631
337,297
Acquisitions of long-term financial instruments
(26,931
)
(1,896
)
Acquisitions of investment in associates and joint ventures
(867,853
)
(151,870
)
Proceeds from disposal of investment in associates and joint ventures
105,335
10,172
Acquisitions of investment property
(3,368
)
—
Proceeds from disposal of investment property
6,588
567
Acquisitions of property, plant and equipment
(2,118,713
)
(2,872,762
)
Proceeds from disposal of property, plant and equipment
61,180
154,464
Acquisitions of intangible assets
(216,670
)
(298,296
)
Proceeds from disposal of intangible assets
2,611
8,472
Proceeds from disposal of assets held for sale
13,041
221,417
Collection of lease receivables
6,377
13,420
Cash inflow from insurance claim
12,787
1,816
Cash inflow from changes in the scope of consolidation
485,058
—
Others, net
(51,584)
(26,447)
Net cash used in investing activities
W
(2,000,890
)
(4,565,239)
Cash flows from financing activities
Origination of borrowings
4,611,169
3,980,458
Repayment of borrowings
(3,067,590
)
(2,233,025
)
Repayment of short-term borrowings, net
(402,047
)
1,024,032
Capital contribution from
non-controlling
interests
30,908
172,573
Payment of cash dividends
(405,441
)
(480,768
)
Repayment of lease liabilities
(89,323
)
(92,399
)
Others, net
(245,038
)
125,512
Net cash provided by financing activities
W
432,638
2,496,383
Effect of exchange rate fluctuation on cash held
156,760
(122,515
)
Net increase in cash and cash equivalents
(702,872
)
241,391
Changes in cash classified as assets held for sale
—
(7,002
)
Cash and cash equivalents at beginning of the period
7,049,800
6,767,898
Cash and cash equivalents at end of the period
W
6,346,928
7,002,287
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
7
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements
June 30, 2026 and 2025 (Unaudited)
1. General Information
General information about POSCO
HOLDINGS INC. (the “Company”), the controlling company, and its subsidiaries in the scope of consolidation, such as 65 domestic subsidiaries including POSCO INC. and 134 foreign subsidiaries including POSCO America Corporation, and 110
associates and joint ventures (collectively referred to as the “Group”) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1110 is as follows:
(a)
The controlling company
POSCO HOLDINGS INC., the controlling company, was established on April 1, 1968, under the Commercial Act of the Republic of Korea. The shares of the
Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business that controls and manages subsidiaries, etc. through ownership of their shares.
On March 2, 2022, the Company established a new subsidiary, POSCO, by a vertical
spin-off
of its steel business
(which is wholly owned by the surviving company) on March 1, 2022, and changed the name of the surviving company to POSCO HOLDINGS INC.
As of
June 30, 2026, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchange.
(b)
New subsidiaries subject to consolidation
Subsidiaries, acquired or newly established, subject to consolidation for the
six-month
period ended June 30, 2026
are as follows:
Company
Date of addition
Ownership (%)
Reason
POS-Louisiana
Inc.
January 2026
100.00
New establishment
Centrux LNG Pte. Ltd.
January 2026
100.00
New establishment
Gale International Korea, LLC
February 2026
100.00
Change in status
Yingkou PFM Refractories Co., Ltd.
March 2026
100.00
New establishment
FUTUREM VIETNAM COMPANY LIMITED
May 2026
100.00
New establishment
NRG Metals Argentina S.A.
May 2026
100.00
Acquisition
(c)
Subsidiaries excluded from consolidation due to loss of control
A subsidiary excluded from consolidation for the
six-month
period ended June 30, 2026 is as follows:
Company
Date of exclusion
Reason
GOLDEN LACE POSCO INTERNATIONAL CO., LTD.
March 2026
Divestiture
POSCO (Zhangjiagang) Stainless Steel Co., Ltd.
April 2026
Divestiture
Qingdao Pohang Stainless Steel Co., Ltd.
April 2026
Divestiture
Zhangjigang Pohang Port Co., Ltd.
April 2026
Divestiture
Zhangjiagang BLZ Pohang International Trading
April 2026
Divestiture
8
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
2. Basis of Preparation
Statement of compliance
The interim condensed consolidated financial statements have been prepared in accordance with KIFRS 1034
Interim Financial Reporting
, as
prescribed in
the Act on External Audit of Stock Companies
of the Republic of Korea. The accompanying interim condensed consolidated financial statements have been translated into English from the Korean language financial statements. In the
event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and
should be read in conjunction with the Group’s annual financial statements as of December 31, 2025. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in
financial position and performance of the Group incurred after December 31, 2025. These interim condensed consolidated financial statements do not include all of the disclosures required for full annual financial statements.
Use of estimates and judgments
(a)
Judgments, assumptions and estimation uncertainties
The preparation of the interim condensed consolidated financial statements in conformity with KIFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.
(b)
Measurement of fair value
The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial
assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all
significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.
The valuation team
regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third
parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
Significant valuation issues are reported to the Group’s Audit Committee.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized
into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
9
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
2. Basis of Preparation (cont’d)
•
Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2 - inputs other than quoted prices included in Level 1 that are observable for the assets or
liabilities, either directly or indirectly.
•
Level 3 - inputs for the assets or liabilities that are not based on observable market data.
If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the
fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels
of the fair value hierarchy at the end of the reporting period during which the change has occurred.
3. Summary of Material Accounting Policy
Information
Except for the items described below, the accounting policies applied by the Group in these interim condensed consolidated financial
statements are the same as those applied to the consolidated financial statements as of and for the year ended December 31, 2025.
Changes in
Accounting Policies
(a)
Amendments to KIFRS 1109
Financial Instruments
and 1107:
Financial Instruments: Disclosures –
Classification and Measurement of Financial Instruments
The amendments to KIFRS 1109 and KIFRS 1107 Classification and Measurement
of Financial Instruments include:
•
a clarification that a financial liability is derecognized on the “settlement date” and the
introduction of an accounting policy choice (if specific conditions are met) to derecognize financial liabilities settled using an electronic payment system before the settlement date;
•
additional guidance on how the contractual cash flows for financial assets with environmental, social and
corporate governance (ESG) and similar features should be assessed;
•
clarifications on what constitute
“non-recourse
features”
and what are the characteristics of contractually linked instruments; and
•
the introduction of disclosures for financial instruments with contingent features and additional disclosure
requirements for equity instruments measured at fair value through other comprehensive income (OCI).
The amendments have no material
impact on the Group’s interim condensed consolidated financial statements.
10
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
3. Summary of Material Accounting Policy Information (cont’d)
(b)
Annual Improvements to KIFRS – Volume 11
Annual Improvements to KIFRS - Volume 11 have been announced for the purpose of improving consistency of requirements set out in each standard, enhancing
clarity, and providing better understanding of the amendments.
-
Amendments to KIFRS 1101
First-time adoption of KIFRS: Hedge accounting by a first-time adopter
-
Amendments to KIFRS 1107
Financial Instruments: Disclosures: Gain or loss on derecognition, Guidance for
application of amendments in practice
-
Amendments to KIFRS 1109
Financial Instruments: Accounting for derecognition of lease liabilities and
definition of transaction prices
-
Amendments to KIFRS 1110
Consolidated Financial Statements: Determination of a ‘de facto
agent’
-
Amendments to KIFRS 1007
Statement of Cash Flows:
Cost Method
The amendments have no material impact on the Group’s interim condensed consolidated financial statements.
(c)
Amendments to KIFRS 1109
Financial Instruments
and KIFRS 1107
Financial Instruments: Disclosures -
Contracts Referencing Nature-dependent Electricity
The amendments to KIFRS 1109 and KIFRS 1107 - Contracts Referencing
Nature-dependent Electricity have been issued and include the followings:
•
clarification of the application of the
“own-use”
requirements for
in-scope
contracts;
•
amendments to the designation requirements for a hedged item in a cash flow hedging relationship for
in-scope
contracts; and
•
addition of new disclosure requirements to enable investors to understand the effect of these contracts on an
entity’s financial performance and cash flows.
The amendments have no material impact on the Group’s interim condensed
consolidated financial statements.
11
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
3. Summary of Material Accounting Policy Information (cont’d)
New and amended standards not yet adopted by the Group
The following new and amended accounting standards and interpretations had been issued but were not mandatory for annual reporting periods ending on
December 31, 2026.
(a)
KIFRS 1118 Presentation and Disclosure in Financial Statements
Key changes in the accounting policies
KIFRS 1118 has been issued, which replaces KIFRS 1001 Presentation of Financial Statements. KIFRS 1118 is expected to enhance the comparability
of financial performance among similar firms by providing information users with useful information for analyzing and comparing firm performance, with a focus on the statement of profit or loss.
KIFRS 1118 is effective for annual reporting periods beginning on or after January 1, 2027, but earlier application is permitted. As the
Group must apply this standard retrospectively in accordance with KIFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors, comparative information for the fiscal year ended December 31, 2027 is restated in accordance with
KIFRS 1118.
The major accounting policies expected to result in significant differences from the current financial statements when the
Group prepares the financial statements in accordance with KIFRS 1118 are as follows. These do not include all the differences that may incur in the future and are subject to change based on further analysis.
1) Changes such as presentation in the statement of profit or loss
KIFRS 1118 introduces new requirements for presentation within the statement of profit or loss to classify all income and expenses into one of
five categories: operating, investing, financing, income taxes and discontinued operations. An entity is required to classify all income and expenses shown in the statement of profit or loss to the operating category if they do not fall under the
investing, financing, income taxes, or discontinued operations categories. According to KIFRS 1118, the operating category is a residual category, meaning it will encompass any income and expenses not assigned to the other specified categories.
The Group shall evaluate its main business activities to classify income and expenses; if the Group’s core business is to provide
financing to customers or invest in assets with particular features, some income and expenses that might ordinarily have been classified in the investing or financing category, when applying the general principles, will be presented in the operating
category.
The operating profit or loss of KIFRS 1118 differs significantly from the operating profit or loss under KIFRS 1001, which is
defined as income less cost of goods sold and selling and administrative expenses under KIFRS 1001. KIFRS 1118 requires the disclosure of operating profit or loss calculated in accordance with KIFRS 1001 in the notes, and the details of the
adjustments for the difference between operating profit or loss under KIFRS 1118 and operating profit or loss under KIFRS 1001 shall also be disclosed in the notes.
12
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
3. Summary of Material Accounting Policy Information (cont’d)
In addition, KIFRS 1118 requires the presentation of “operating profit or loss,” consisting of all income and expenses classified
under operating category, operating profit or loss and “operating profit or loss before financing and income taxes,” consisting of all income and expenses classified under investing category, and “net profit or loss.”
However, there is an exception from presenting the subtotal “profit or loss before financing and income taxes” if the Group has a main business activity of providing financing to customers, depending on the accounting policies applied.
2) Disclosure of management-defined performance measures(MPMs)
KIFRS 1118 introduces the concept of MPMs which are defined as a subtotal of income and expenses that an entity uses in public communications
outside financial statements, to communicate management’s view of an aspect of the financial performance of the entity as a whole to the users. KIFRS 1118 defines MPMs as subtotals of income and expenses that are not specified in paragraph 118
of KIFRS 1118 or for which presentation and disclosure of subtotals of income and expenses are not specifically required.
If a performance
measure qualifies as an MPM, KIFRS 1118 specifies the disclosure requirements. These disclosures should be included in a single note in the financial statements, and include:
•
a description of the aspect of financial performance which is communicated by the MPM, as well as explanation
of why the MPM provides useful financial information;
•
how the MPM is calculated; and
•
a reconciliation between the MPM and the most directly comparable subtotal required by KIFRS, including the
income tax effects and the effect on
non-controlling
interests for each reconciling item.
3) Changes such as classification of cash flows, etc.
In addition, narrow-scope amendments have been made to KIFRS 1007 Statement of Cash Flows, which include changing the starting point for
determining cash flows from operations under the indirect method, from “profit or loss” to “operating profit or loss” and removing the optionality around classification of cash flows from dividends and interest.
Assessment of major impact
The
Group has not applied KIFRS 1118 as it is not mandatorily applicable yet, and the Group plans to report the first interim financial statements for the reporting period ended December 31, 2027, in accordance with KIFRS 1118.
13
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
4. Trade Accounts and Notes Receivable
Details of trade
accounts and notes receivable as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Trade accounts and notes receivable
W
12,402,069
10,133,240
Due from customers for contract work
1,508,834
1,594,458
Less: Allowance for doubtful accounts
(577,791
)
(529,724
)
W
13,333,112
11,197,974
Non-current
Trade accounts and notes receivable
W
59,547
64,902
Less: Allowance for doubtful accounts
(43,019
)
(45,194
)
W
16,528
19,708
The Group discounted trade accounts receivable in accordance with trade accounts receivable factoring agreements with
financial institutions for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025. This transaction is a transaction with recourse rights because the Group is obligated to pay
the amount to the bank, etc. if the trade accounts receivable are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of June 30, 2026 and December 31, 2025, the book value of the trade accounts
receivable from the transaction is
W
224,044 million and
W
136,758 million, respectively, and the amount is included in the short-term borrowings.
14
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
5. Other Receivables
Details of other receivables as of
June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Short-term loans
W
420,422
348,621
Other accounts receivable
1,504,199
1,276,332
Accrued income
291,215
341,802
Deposits
80,308
106,612
Others
38,170
36,209
Lease receivables
16,663
14,432
Less: Allowance for doubtful accounts
(126,547
)
(203,323
)
W
2,224,430
1,920,685
Non-current
Long-term loans(*1)
W
1,350,520
1,369,527
Other accounts receivable
468,119
461,676
Accrued income
171,746
183,455
Deposits
124,405
141,782
Lease receivables
65,366
65,676
Less: Allowance for doubtful accounts
(705,279
)
(586,863
)
W
1,474,877
1,635,253
(*1)
The Group recognized an allowance for doubtful accounts for all of the other receivables from FQM Australia
Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables.
15
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
6. Other Financial Assets
Details of other financial
assets as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Derivatives assets
W
212,702
235,924
Debt securities
390,543
927,586
Deposit instruments(*1)
7,359,353
7,123,233
Short-term financial instruments(*1)
201,419
491,841
Other securities
2,035
—
W
8,166,052
8,778,584
Non-current
Derivatives assets
W
798,746
426,649
Equity securities(*2)
1,799,464
1,721,439
Debt securities
214,139
172,181
Other securities(*2)
767,944
696,148
Deposit instruments(*1)
69,921
44,425
W
3,650,214
3,060,842
(*1)
As of June 30, 2026 and December 31, 2025, financial instruments amounting to
W
852,180 million and
W
362,150 million, respectively, are restricted in use for financial arrangements, pledge and others.
(*2)
As of June 30, 2026 and December 31, 2025,
W
123,107 million and
W
122,285 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.
16
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
7. Inventories
(a) Details of inventories as of
June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Finished goods
W
2,455,818
2,754,668
Merchandise
1,287,163
1,247,922
Semi-finished goods
2,627,702
2,764,000
Raw materials
3,387,946
3,333,252
Fuel and materials
1,127,296
1,095,038
Construction inventories
155,084
166,689
Materials-in-transit
3,104,341
2,490,175
Others
172,459
169,010
14,317,809
14,020,754
Less: Allowance for inventories valuation(*1)
(350,035
)
(396,321
)
W
13,967,774
13,624,433
(*1)
For each of the
six-month
periods ended June 30, 2026 and 2025,
allowance for inventories valuation was increased by
W
54,316 million and reversed by
W
39,259 million, respectively.
(b) The allowances for inventories valuation by item as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Finished goods
W
124,741
158,268
Merchandise
15,688
7,255
Semi-finished goods
40,976
90,155
Raw materials
140,986
115,651
Fuel and materials
9,190
6,069
Construction inventories
7,711
7,989
Others
10,743
10,934
W
350,035
396,321
17
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
8. Assets Held for Sale
Details of assets held for sale
as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Asset
Cash and cash equivalents
—
1,924
Account receivables and other receivables
—
314
Equity Securities
7,833
7,276
Property, plant and equipment
446
10,361
Intangible assets
—
285
Others
—
7
W
8,279
20,167
Liability
Other receivables
W
—
3,419
Provisions
—
259
W
—
3,678
9. Investments in Associates and Joint ventures
(a)
Details of investments in associates as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31,
2025
Company
Number
of shares
Ownership
(%)
Acquisition
cost
Book value
Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1)
4,507,138
34.00
W
473,093
W
408,590
421,699
Chun-cheon Energy Co., Ltd(*1)
17,308,143
49.10
86,541
16,988
16,685
Pocheon-Hwado Highway Corp.(*1)
7,109,230
27.89
35,546
7,273
17,194
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd
944,920
29.53
4,725
12,011
12,096
PCC Amberstone Private Equity Fund 1(*2)
2,253,533,435
8.80
2,254
2,335
2,791
Others(*1)
131,113
134,363
578,310
604,828
[Foreign]
South-East Asia Gas Pipeline Company Ltd.
50,082
25.04
83,030
285,942
263,375
9404-5515 Quebec Inc.
284,463,243
25.85
328,509
448,964
411,602
AMCI (WA) PTY LTD
49
49.00
209,664
193,010
162,606
KOREA LNG LTD.
2,400
20.00
135,205
24,159
19,524
PT. Wampu Electric Power(*1)
8,708,400
20.00
10,054
16,747
16,483
POS-SeAH
Steel Wire(Nantong) Co.,
Ltd.
50
25.00
4,723
14,204
11,994
M RES NSW HCC II Pty Ltd(*3)
72,000,000
92.31
104,511
98,822
101,884
Hyundai-POSCO Louisiana Steel LLC
20
20.00
278,043
322,421
—
PT.Xinheng Metal Indonesia
255,000,000
44.12
578,350
590,906
—
Others(*1)
310,500
252,322
2,305,675
1,239,790
W
2,883,985
1,844,618
(*1)
As of June 30, 2026 and December 31, 2025, investments in associates amounting to
W
466,890 million and
W
486,995 million, respectively, are provided as collateral in relation to the associates’ borrowings.
(*2)
As of June 30, 2026, the entity is classified as an associate since the Group has significant influence
over the investee although the Group’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.
(*3)
As of June 30, 2026, the entity is classified as an associate since the Group has significant influence
over the investee although the Group’s percentage of ownership is more than 50%, considering the structure of the entity’s Board of Directors and others.
18
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investments in Associates and Joint ventures (cont’d)
(b)
Details of investments in joint ventures as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31,
2025
Company
Number
of shares
Ownership
(%)
Acquisition
cost
Book value
Book value
[Domestic]
POSCO MC MATERIALS
11,568,000
60.00
W
115,680
W
151,796
146,038
SNNC
18,130,000
49.00
90,650
—
2,364
Others
10,212
12,702
162,008
161,104
[Foreign]
Roy Hill Holdings Pty Ltd(*1)
13,117,972
12.50
1,528,672
1,592,394
1,441,376
POSCO-NPS
Niobium LLC
325,050,000
50.00
364,609
501,127
466,492
KOBRASCO
2,010,719,185
50.00
32,950
155,207
126,943
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
—
25.00
61,961
152,010
132,616
PT NICOLE METAL INDUSTRY
152,764,706
49.00
603,178
720,660
649,462
HBIS-POSCO Automotive Steel Co., Ltd
—
50.00
235,251
123,895
134,404
Others
26,803
23,138
3,272,096
2,974,431
W
3,434,104
3,135,535
(*1)
As of June 30, 2026 and December 31, 2025, the investments in joint ventures are provided as
collateral in relation to the joint ventures’ borrowings.
19
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investments in Associates and Joint ventures (cont’d)
(c)
Changes in investments in associates and joint ventures for the six-month period ended June 30, 2026 and
the year ended December 31, 2025 are as follows:
1)
For the six-month period ended June 30, 2026
(in millions of Won)
Company
December 31,
2025
Book value
Acquisition
Dividends
Share of
profits (losses)
Other increase
(decrease)(*1)
June 30,
2026
Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.
W
421,699
—
—
6,866
(19,975
)
408,590
SNNC
2,364
—
—
(2,363
)
(1
)
—
Chun-cheon Energy Co., Ltd
16,685
—
—
—
303
16,988
Pocheon-Hwado Highway Corp.
17,194
—
—
(9,922
)
1
7,273
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd
12,096
—
—
(85
)
—
12,011
PCC Amberstone Private Equity Fund 1
2,791
35
—
367
(858
)
2,335
POSCO MC MATERIALS
146,038
—
—
5,758
—
151,796
Others
147,064
11,425
(396
)
(6,281
)
(10,487
)
141,325
765,931
11,460
(396
)
(5,660
)
(31,017
)
740,318
[Foreign]
South-East Asia Gas Pipeline Company Ltd.
263,375
—
(16,776
)
26,467
12,876
285,942
9404-5515 Quebec Inc.
411,602
—
(14,470
)
14,399
37,433
448,964
AMCI (WA) PTY LTD
162,606
—
—
21,847
8,557
193,010
KOREA LNG LTD.
19,524
—
(2,779
)
2,776
4,638
24,159
PT. Wampu Electric Power
16,483
—
(909
)
285
888
16,747
POS-SeAH
Steel Wire(Nantong) Co.,
Ltd.
11,994
—
—
423
1,787
14,204
Roy Hill Holdings Pty Ltd
1,441,376
—
(95,904
)
74,581
172,341
1,592,394
POSCO-NPS
Niobium LLC
466,492
—
(12,359
)
14,615
32,379
501,127
KOBRASCO
126,943
—
—
10,471
17,793
155,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
132,616
—
—
5,458
13,936
152,010
PT NICOLE METAL INDUSTRY
649,462
—
—
29,395
41,803
720,660
HBIS-POSCO Automotive Steel Co., Ltd
134,404
—
—
(23,966
)
13,457
123,895
M RES NSW HCC II Pty Ltd
101,884
—
—
(14,811
)
11,749
98,822
Hyundai-POSCO Louisiana Steel LLC
—
278,043
—
319
44,059
322,421
PT.Xinheng Metal Indonesia
—
578,350
—
1,168
11,388
590,906
Others
275,461
—
(5,554
)
6,071
61,325
337,303
4,214,222
856,393
(148,751
)
169,498
486,409
5,577,771
W
4,980,153
867,853
(149,147
)
163,838
455,392
6,318,089
(*1)
Others represent the changes in investments in associates and joint ventures due to disposals and change in
capital adjustments effect from translations of financial statements of foreign investees and others for the six-month period ended June 30, 2026.
20
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investments in Associates and Joint ventures (cont’d)
2)
For the year ended December 31, 2025
(in millions of Won)
Company
December 31,
2024
Book value
Acquisition
Dividends
Share of
profits (losses)
Other increase
(decrease)(*1)
December 31,
2025
Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.
W
392,269
17,509
(2,795
)
7,595
7,121
421,699
SNNC
38,046
—
—
(35,826
)
144
2,364
Chun-cheon Energy Co., Ltd
14,054
—
—
2,016
615
16,685
Pocheon-Hwado Highway Corp.
14,834
—
—
2,360
—
17,194
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd
12,401
—
—
(306
)
1
12,096
PCC Amberstone Private Equity Fund 1
6,181
—
(227
)
(469
)
(2,694
)
2,791
POSCO MC MATERIALS
153,839
—
(3,000
)
(5,072
)
271
146,038
Others
132,730
25,597
(2,216
)
(2,445
)
(6,602
)
147,064
764,354
43,106
(8,238
)
(32,147
)
(1,144
)
765,931
[Foreign]
South-East Asia Gas Pipeline Company Ltd.
279,349
—
(37,273
)
57,362
(36,063
)
263,375
9404-5515 Quebec Inc.
426,276
—
(21,180
)
12,359
(5,853
)
411,602
AMCI (WA) PTY LTD
68,478
—
—
95,188
(1,060
)
162,606
KOREA LNG LTD.
25,622
—
(5,040
)
5,192
(6,250
)
19,524
PT. Wampu Electric Power
17,680
—
(1,708
)
739
(228
)
16,483
POS-SeAH
Steel Wire(Nantong) Co., Ltd.
10,713
—
—
983
298
11,994
Roy Hill Holdings Pty Ltd
1,397,824
—
(213,794
)
161,274
96,072
1,441,376
POSCO-NPS
Niobium LLC
477,898
—
(44,955
)
43,229
(9,680
)
466,492
KOBRASCO
119,820
—
(22,955
)
17,761
12,317
126,943
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
126,906
—
(11,440
)
15,399
1,751
132,616
PT NICOLE METAL INDUSTRY(*2)
578,604
62,574
—
19,497
(11,213
)
649,462
HBIS-POSCO Automotive Steel Co.Ltd
179,841
—
—
(47,669
)
2,232
134,404
M RES NSW HCC II Pty Ltd
—
104,511
—
(2,210
)
(417
)
101,884
Others
265,428
3,088
(9,526
)
2,953
13,518
275,461
3,974,439
170,173
(367,871
)
382,057
55,424
4,214,222
W
4,738,793
213,279
(376,109
)
349,910
54,280
4,980,153
(*1)
Others represent the changes in investments in associates and joint ventures due to disposals and change in
capital adjustments effect from translations of financial statements of foreign investees and others for the year ended December 31, 2025.
(*2)
For the year ended December 31, 2025, the Group acquired an additional investment in a joint venture
amounting to
W
62,574 million by participating in a capital increase of PT NICOLE METAL INDUSTRY for an investment in a nickel pyrometallurgical plant in Indonesia.
21
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investments in Associates and Joint ventures (cont’d)
(d)
The summarized financial information on associates and joint ventures as of and for the six-month period ended
June 30, 2026 and the year ended December 31, 2025 is as follows:
1)
As of and for the
six-month
period ended June 30, 2026
(in millions of Won)
Company
Assets
Liabilities
Equity
(deficit)
Sales
Net income
(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.
W
5,258,536
4,414,621
843,915
327,546
18,139
SNNC
602,206
623,917
(21,711
)
317,658
(43,871
)
Chun-cheon Energy Co., Ltd
514,703
391,245
123,458
190,073
(113
)
Pocheon-Hwado Highway Corp.
654,710
592,023
62,687
10,808
(36,124
)
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd
12,870
2,512
10,358
—
(288
)
PCC Amberstone Private Equity Fund 1
26,590
50
26,540
7,335
4,175
POSCO MC MATERIALS
341,668
87,214
254,454
126,754
9,546
[Foreign]
South-East Asia Gas Pipeline Company Ltd.
1,594,026
452,070
1,141,956
229,609
105,704
9404-5515 Quebec Inc.
1,751,350
312
1,751,038
—
55,704
FQM Australia Holdings Pty Ltd
97,996
1,792,467
(1,694,471
)
—
(56,822
)
KOREA LNG LTD.
121,089
293
120,796
14,735
13,878
Nickel Mining Company SAS
505,413
331,190
174,223
108,992
(21,417
)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD
357,889
61,522
296,367
161,614
(1,588
)
PT. Wampu Electric Power
193,317
111,798
81,519
7,947
1,209
POS-SeAH
Steel Wire(Nantong) Co., Ltd.
114,192
62,985
51,207
73,168
1,693
Roy Hill Holdings Pty Ltd
12,398,023
2,929,968
9,468,055
3,965,541
837,293
POSCO-NPS
Niobium LLC
1,002,051
—
1,002,051
—
23,733
KOBRASCO
325,998
16,190
309,808
33,830
20,942
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
1,350,384
769,211
581,173
789,707
21,834
DMSA/AMSA
837,397
1,908,555
(1,071,158
)
285,203
(185,924
)
HBIS-POSCO Automotive Steel Co., Ltd
1,021,995
758,244
263,751
400,223
(49,083
)
PT NICOLE METAL INDUSTRY
1,186,353
155,618
1,030,735
471,251
60,522
M RES NSW HCC II Pty Ltd
101,843
72
101,771
—
(11,615
)
Hyundai-POSCO Louisiana Steel LLC
1,500,197
8,637
1,491,560
—
1,593
PT.Xinheng Metal Indonesia
1,137,351
24,544
1,112,807
—
2,647
22
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investments in Associates and Joint ventures (cont’d)
2)
As of and for the year ended December 31, 2025
(in millions of Won)
Company
Assets
Liabilities
Equity
(deficit)
Sales
Net income
(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.
W
5,186,881
4,361,206
825,675
638,593
23,070
SNNC
553,862
531,702
22,160
767,857
(73,652
)
Chun-cheon Energy Co., Ltd
505,987
382,416
123,571
363,995
377
Pocheon-Hwado Highway Corp.
683,282
584,471
98,811
24,289
7,364
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd
13,340
2,694
10,646
1,050
(1,049
)
PCC Amberstone Private Equity Fund 1
33,795
2,067
31,728
891
(5,329
)
POSCO MC MATERIALS
349,737
104,830
244,907
205,386
(8,479
)
[Foreign]
South-East Asia Gas Pipeline Company Ltd.
1,445,230
393,409
1,051,821
462,017
229,086
9404-5515 Quebec Inc.
1,631,812
21
1,631,791
—
47,813
FQM Australia Holdings Pty Ltd
57,067
1,579,336
(1,522,269
)
—
(96,001
)
KOREA LNG LTD.
97,944
325
97,619
28,117
25,960
Nickel Mining Company SAS
491,050
303,284
187,766
187,021
(70,342
)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD
340,488
71,616
268,872
187,600
(21,282
)
PT. Wampu Electric Power
190,896
111,514
79,382
19,108
3,693
POS-SeAH
Steel Wire(Nantong) Co., Ltd.
99,974
55,384
44,590
151,451
3,814
Roy Hill Holdings Pty Ltd
11,118,720
2,625,843
8,492,877
7,209,853
1,641,837
POSCO-NPS
Niobium LLC
932,780
—
932,780
—
79,937
KOBRASCO
276,085
22,804
253,281
54,101
35,522
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
1,272,968
769,371
503,597
1,455,502
61,595
DMSA/AMSA
875,900
1,692,942
(817,042
)
856,215
(684,937
)
HBIS-POSCO Automotive Steel Co., Ltd
964,614
679,930
284,684
625,983
(97,928
)
PT NICOLE METAL INDUSTRY
1,073,184
172,335
900,849
701,059
40,197
M RES NSW HCC II Pty Ltd
109,139
3
109,136
—
(2,761
)
10. Joint Operations
Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of June 30, 2026 are as follows:
Joint operations
Operation
Ownership (%)
Location
Myanmar
A-1/A-3
mine
Mine development and gas production
51.00
Myanmar
Offshore midstream
Gas transportation facility
51.00
Myanmar
Mt. Thorley J/V
Mine development
20.00
Australia
POSMAC J/V
Mine development
20.00
Australia
23
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
11. Investment Property
Changes in the carrying amounts
of investment properties for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(a)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Impairment
loss
Others(*1)
Ending
Land
W
794,740
—
(5,200
)
—
158
5,775
795,473
Buildings
752,471
3,368
(347
)
(15,868
)
352
34,970
774,946
Structures
1,210
—
—
(447
)
—
667
1,430
Right of use assets
143,204
—
(44
)
(3,510
)
—
15,589
155,239
W
1,691,625
3,368
(5,591
)
(19,825
)
510
57,001
1,727,088
(*1)
Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation
difference and others.
(b)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Impairment
loss
Others(*1)
Ending
Land
W
866,450
163
(510
)
—
—
(71,363
)
794,740
Buildings
942,851
2,727
(607
)
(21,147
)
(2,553
)
(168,800
)
752,471
Structures
1,755
—
—
(909
)
—
364
1,210
Right of use assets
144,840
1,464
(276
)
(5,621
)
—
2,797
143,204
W
1,955,896
4,354
(1,393
)
(27,677
)
(2,553
)
(237,002
)
1,691,625
(*1)
Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation
difference and others.
24
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
12. Property, Plant and Equipment
(a)
Changes in the carrying amounts of property, plant and equipment for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Impairment
loss
Others(*1)
Ending
Land
W
3,686,386
3,866
(3,233
)
—
—
595,795
4,282,814
Buildings
5,793,840
6,439
(4,365
)
(205,562
)
(8,362
)
308,245
5,890,235
Structures
4,290,373
7,030
(3,369
)
(173,551
)
(17,040
)
249,131
4,352,574
Machinery and equipment
18,205,327
77,743
(14,818
)
(1,277,336
)
(97,894
)
1,293,827
18,186,849
Vehicles
100,615
6,762
(890
)
(20,994
)
—
1,069
86,562
Tools
118,257
10,649
(772
)
(27,722
)
231
11,160
111,803
Furniture and fixtures
219,168
12,248
(999
)
(41,959
)
(65
)
14,953
203,346
Lease assets
1,374,327
69,014
(6,557
)
(106,916
)
—
64,751
1,394,619
Bearer plants
362,871
—
(406
)
(15,494
)
—
5,277
352,248
Construction-in-progress
8,141,656
1,832,581
(4,380
)
—
—
(1,937,326
)
8,032,531
W
42,292,820
2,026,332
(39,789
)
(1,869,534
)
(123,130
)
606,882
42,893,581
(*1)
Presenting reclassifications resulting from change in purpose of use, adjustments of foreign currency
translation differences and others.
2)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Business
Combination(*1)
Disposals
Depreciation
Impairment
loss(*2)
Others(*3)
Ending
Land
W
3,335,875
33,702
218,786
(13,247
)
—
(1,364
)
112,634
3,686,386
Buildings
5,280,968
28,996
62,944
(35,868
)
(403,394
)
—
860,194
5,793,840
Structures
3,860,523
13,591
10,796
(103,544
)
(330,278
)
—
839,285
4,290,373
Machinery and equipment
18,311,678
107,319
23,146
(43,106
)
(2,543,786
)
(88,769
)
2,438,845
18,205,327
Vehicles
89,975
9,538
19,921
(1,463
)
(40,783
)
(1,344
)
24,771
100,615
Tools
134,501
23,288
—
(1,850
)
(53,854
)
(1
)
16,173
118,257
Furniture and fixtures
200,033
30,487
4,818
(3,466
)
(79,619
)
—
66,915
219,168
Lease assets
970,634
644,892
—
(43,705
)
(202,668
)
—
5,174
1,374,327
Bearer plants
139,451
—
249,352
(4,647
)
(11,229
)
—
(10,056
)
362,871
Construction-in-progress
7,523,190
5,176,786
44,872
(8,941
)
—
(44,175
)
(4,550,076
)
8,141,656
W
39,846,828
6,068,599
634,635
(259,837
)
(3,665,611
)
(135,653
)
(196,141
)
42,292,820
(*1)
For the year ended December 31, 2025, as entities such as PT. Prime Agri Resources were newly included as
subsidiaries, the Group included the resulting increase in property, plant and equipment in business combinations.
(*2)
For the year ended December 31, 2025, the Group estimated the recoverable amount of individual assets
whose operation was suspended, such as Finex Plant no. 3, at their net fair value and recognized an impairment loss of
W
69,988 million.
(*3)
Includes reclassifications resulting from change in purpose of use, adjustments of foreign currency translation
differences and others.
25
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
12. Property, Plant and Equipment (cont’d)
(b)
Changes in the carrying amounts of
right-of-use
assets presented as investment properties and property, plant and equipment for the
six-month
period ended
June 30, 2026 and the year ended December 31, 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Others
Ending
Land
W
326,232
6,746
(40
)
(7,936
)
916
325,918
Buildings and structures
193,783
18,501
(6,570
)
(30,941
)
18,451
193,224
Machinery and equipment
332,121
12,114
(943
)
(35,249
)
45,307
353,350
Vehicles
40,769
5,382
(768
)
(9,079
)
4,531
40,835
Ships
426,786
—
—
(19,097
)
—
407,689
Others
197,840
26,271
(141
)
(8,123
)
12,995
228,842
W
1,517,531
69,014
(8,462
)
(110,425
)
82,200
1,549,858
2)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Depreciation
Others
Ending
Land
W
348,918
15,560
(16,154
)
(22,092
)
326,232
Buildings and structures
154,747
119,586
(55,532
)
(25,018
)
193,783
Machinery and equipment
346,642
29,687
(64,748
)
20,540
332,121
Vehicles
45,071
15,832
(21,623
)
1,489
40,769
Ships
196,070
264,508
(33,792
)
—
426,786
Others
24,026
201,183
(16,440
)
(10,929
)
197,840
W
1,115,474
646,356
(208,289
)
(36,010
)
1,517,531
(c)
The amounts recognized in profit or loss related to leases for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
For the three-month
periods ended
June 30
For the
six-month
periods ended
June 30
(in millions of Won)
2026
2025
2026
2025
Interest on lease liabilities
W
19,981
13,364
38,888
24,786
Expenses related to short-term leases
3,069
8,958
12,355
20,584
Expenses related to leases of
low-value
assets
1,062
2,803
5,427
7,856
W
24,112
25,125
56,670
53,226
26
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
13. Goodwill and Other Intangible Assets
Changes in the
carrying amounts of goodwill and other intangible assets for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(a)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Amortization
Impairment
loss
Others(*2)
Ending
Goodwill
W
826,772
—
—
—
(343
)
1,305
827,734
Intellectual property rights
3,375,658
296,285
—
(162,594
)
—
296,864
3,806,213
Membership(*1)
139,238
158
(93
)
(134
)
(11
)
333
139,491
Development expense
200,753
4,593
—
(34,675
)
—
8,889
179,560
Port facilities usage rights
153,152
—
—
(7,422
)
—
—
145,730
Exploratation and evaluation assets
147,013
5,004
—
—
(5,288
)
9,399
156,128
Development assets
83,341
—
—
(151
)
—
6,186
89,376
Customer relationships
116,246
—
—
(17,419
)
—
213
99,040
Other intangible assets
451,356
37,370
(81
)
(30,991
)
18
(20,523
)
437,149
W
5,493,529
343,410
(174
)
(253,386
)
(5,624
)
302,666
5,880,421
(*1)
Lease premiums included memberships with the indefinite useful lives.
(*2)
Presenting assets transferred from
construction-in-progress
to intangible assets, adjustments of foreign currency translation difference and others.
(b)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Business
Combination(*3)
Disposals
Amortization
Impairment
loss
Others(*2)
Ending
Goodwill
W
357,851
—
466,537
(461
)
—
—
2,845
826,772
Intellectual property rights
3,247,517
377,414
—
(4
)
(289,446
)
(30,426
)
70,603
3,375,658
Membership(*1)
136,108
7,243
—
(4,892
)
(238
)
(519
)
1,536
139,238
Development expense
95,041
12,089
—
—
(50,481
)
(6,124
)
150,228
200,753
Port facilities usage rights
167,996
—
—
—
(14,844
)
—
—
153,152
Exploratation and evaluation assets
115,309
44,097
—
(22
)
—
(14,548
)
2,177
147,013
Development assets
86,711
—
—
—
—
—
(3,370
)
83,341
Customer relationships
145,699
—
—
—
(42,068
)
—
12,615
116,246
Other intangible assets
422,592
162,142
88,338
(563
)
(68,858
)
(1
)
(152,294
)
451,356
W
4,774,824
602,985
554,875
(5,942
)
(465,935
)
(51,618
)
84,340
5,493,529
(*1)
Lease premiums included memberships with the indefinite useful lives.
(*2)
Presenting assets transferred from
construction-in-progress
to intangible assets, adjustments of foreign currency translation difference and others.
(*3)
For the year ended December 31, 2025, as entities such as PT. Prime Agri Resources were newly included as
subsidiaries, the Group included the resulting increase in goodwill and other intangible assets in business combinations.
27
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
14. Other Assets
Details of other assets as of
June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Advance payments
W
774,814
582,909
Prepaid expenses
261,347
186,066
Firm commitment asset
13,085
9,221
Others
35,378
35,326
W
1,084,624
813,522
Non-current
Long-term advance payments
W
108,069
54,896
Long-term prepaid expenses
17,827
18,156
Others
80,780
62,631
W
206,676
135,683
15. Borrowings
(a)
Details of short-term borrowings and current portion of long-term borrowings and others as of June 30,
2026 and December 31, 2025 are as follows:
(in millions of Won)
Lenders
Issuance date
Maturity date
Interest rate (%)
June 30, 2026
December 31, 2025
Short-term borrowings
Bank overdrafts
JP Morgan
and others
January, 2026~ June, 2026
July, 2026~ June, 2027
3.40~6.30
W
172,391
137,852
Short-term borrowings
HSBC and
others
July, 2025~ June, 2026
July, 2026~ June, 2027
0.50~7.89
7,094,130
7,294,105
7,266,521
7,431,957
Current portion of long-term liabilities
Current portion of long-term borrowings
Export-Import
Bank of
Korea and
others
September, 2001~ June,
2026
July, 2026~ June, 2027
1.00~8.50
1,389,705
1,302,568
Current portion of debentures
KB Securities
co., Ltd.
and others
July, 2019~ May, 2025
July, 2026~ June, 2027
1.72~8.4
2,406,544
3,340,036
Less: Current portion of discount on debentures issued
(3,021
)
(1,648
)
Current portion of exchangable bonds
Foreign
currency
exchangable
bonds
September, 2021
September, 2026
47,469
44,509
3,840,697
4,685,465
W
11,107,218
12,117,422
28
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
15. Borrowings (cont’d)
The
issuance conditions of the exchangeable bonds issued by the Company are as follows:
Foreign currency exchangeable bonds
Type of bond
Exchangeable bonds
Aggregate principal amount(*1)
EUR 27,100,000
Interest rate
- Coupon rate : -
- Yield to maturity : (0.78%)
Maturity date
September 1, 2026
Redemption
- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at maturity as a lump sum
- Prepayment : The issuer has call option and the bondholders have put option
Exchange rate
100%
Exchange price(*2) (Won/share)
419,025
Underlying shares
Registered common shares(treasury shares)
Exchange period
From October 12, 2021 to August 22, 2026
Adjustments for exchange price
Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of
options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders
- In the event of a change of control of the Company
- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)
Call option by the issuer
- Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading
days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds
- When the outstanding balance of outstanding bonds is less than 10% of the total issuance
(Clean-Up
Call)
- Where additional reasons for tax burden arise due to the amendment of relevant laws
and regulations, etc
(*1)
Due to investors exercising their early redemption rights, EUR 1,038,800,000 of the total face value of EUR
1,065,900,000 in exchangeable bonds was redeemed during the year ended December 31, 2024.
(*2)
The exchange price has changed due to cash dividends paid during the six-month period ended June 30, 2026.
The Group has designated exchangeable bonds listed on the Singapore Stock Exchange as financial liabilities measured at
fair value through profit or loss. The quoted transaction price is used in fair value measurement, and changes in fair value are recognized in profit or loss.
29
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
15. Borrowings (cont’d)
(b)
Details of
long-term
borrowings, excluding current portion and others,
as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
Lenders
Issuance date
Maturity date
Interest rate (%)
June 30, 2026
December 31, 2025
Long-term borrowings
Export-Import Bank
of Korea and others
September, 2001~ June, 2026
July, 2027~ March, 2040
0.98~7.50
W
7,788,806
6,605,336
Less: Present value discount
(51,257
)
(49,101
)
Bonds
KB Securities co., Ltd. and others
October, 2019~ June, 2026
July, 2027~ January, 2036
1.77~8.25
11,612,605
9,859,696
Less: Discount on debentures issued
(53,450
)
(41,353
)
W
19,296,704
16,374,578
(c)
Details of assets pledged as collateral with regard to the borrowings as of June 30, 2026 are as follows:
(in millions of Won)
Lenders
Book value
Pledged amount
Property, plant and equipment and Investment property
Korea Development Bank and others
W
5,349,597
4,992,601
Trade accounts and notes receivable
Korea Development Bank and others
224,044
224,044
Financial instruments
Korea Development Bank and others
497,410
497,410
Cash equivalents
Korea Development Bank and others
9,972
9,972
W
6,081,023
5,724,027
16. Other Payables
Details of other payables as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Accounts payable
W
1,633,495
1,646,460
Accrued expenses
1,258,141
1,242,403
Dividend payable
16,381
4,598
Lease liabilities
203,382
180,424
Withholdings
339,587
332,620
W
3,450,986
3,406,505
Non-current
Accounts payable
W
2,970
4,072
Accrued expenses
24,864
18,459
Lease liabilities
1,218,301
1,160,230
Long-term withholdings
54,206
54,597
W
1,300,341
1,237,358
30
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
17. Other Financial Liabilities
Details of other
financial liabilities as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Derivative liabilities
W
48,419
49,947
Financial guarantee liabilities
10,784
8,194
Others
8,497
8,482
W
67,700
66,623
Non-current
Derivative liabilities
W
3,124
7,627
Financial guarantee liabilities
17,189
9,941
Others
73,500
73,500
W
93,813
91,068
18. Provisions
(a)
Details of provisions as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Non-
current
Current
Non-
current
Provision for bonus payments
W
103,869
103,535
119,010
101,039
Provision for construction warranties
33,140
157,835
39,393
148,673
Provision for legal contingencies and claims(*1)
10,345
46,905
5,685
45,363
Provision for the restoration
2,552
222,014
2,979
196,651
Others(*2)
423,745
141,475
465,577
158,603
W
573,651
671,764
632,644
650,329
(*1)
The Group recognized probable outflow of resources amounting to
W
36,096 million and
W
35,061 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of June 30, 2026 and December 31, 2025, respectively.
(*2)
According to the
Act on the promotion of the development, use and diffusion of new and renewable energy
,
POSCO INTERNATIONAL Corporation is obliged to supply a certain amount of power generated by new and renewable energy sources. In accordance with the Act, POSCO INTERNATIONAL Corporation estimated the cost required to fulfill its obligations, such as
insufficient supply of power using new and renewable energy to be borne, and as of June 30, 2026 and December 31, 2025, the Group recognized
W
59,110 million and
W
45,150 million respectively, as
provision.
31
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
18. Provisions (cont’d)
(b)
Changes in provisions for the
six-month
period ended June 30, 2026
and the year ended December 31, 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Increase
Utilization
Reversal
Others(*1)
Ending
Provision for bonus payments
W
220,049
71,284
(77,753
)
(1,139
)
(5,037
)
207,404
Provision for construction warranties
188,066
21,983
(15,138
)
(4,582
)
646
190,975
Provision for legal contingencies and claims
51,048
4,953
(104
)
(593
)
1,946
57,250
Provision for the restoration
199,630
20,957
(2,610
)
(5,723
)
12,312
224,566
Others
624,180
39,281
(60,943
)
(35,388
)
(1,910
)
565,220
W
1,282,973
158,458
(156,548
)
(47,425
)
7,957
1,245,415
(*1)
Including adjusted foreign currency translation differences and others.
2)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Increase
Business
Combination(*1)
Utilization
Reversal
Others(*2)
Ending
Provision for bonus payments
W
191,861
159,990
—
(133,528
)
(2,634
)
4,360
220,049
Provision for construction warranties
186,860
43,891
—
(35,139
)
(6,005
)
(1,541
)
188,066
Provision for legal contingencies and claims
96,446
10,856
—
(23,507
)
(15,782
)
(16,965
)
51,048
Provision for the restoration
207,851
26,853
—
(4,953
)
(4,843
)
(25,278
)
199,630
Others
293,571
484,936
138,212
(29,447
)
(68,387
)
(194,705
)
624,180
W
976,589
726,526
138,212
(226,574
)
(97,651
)
(234,129
)
1,282,973
(*1)
For the year ended December 31, 2025, PT. Prime Agri Resources was newly included as a subsidiary, and the
Group included the resulting increase in provisions as part of the business combination.
(*2)
Including adjusted foreign currency translation differences and others.
32
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
19.
Post-employment
plans
(a)
Defined contribution plans
The expenses related to defined contribution retirement plans for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month
periods ended June 30
For the
six-month
periods ended June 30
2026
2025
2026
2025
Expense related to post-employment benefit plans under defined contribution plans
W
19,600
18,867
40,041
37,631
(b)
Defined benefit plans
1)
The amounts recognized in relation to net defined benefit assets in the consolidated statements of financial
position as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Present value of funded obligations
W
2,532,621
2,631,811
Fair value of plan assets(*1)
(2,708,898
)
(2,923,780
)
Present value of
non-funded
obligations
(12,460
)
(4,955
)
Net defined benefit liabilities
W
(188,737
)
(296,924
)
(*1)
As of June 30, 2026 and December 31, 2025, the Group recognized net defined benefit assets amounting
to
W
278,152 million and
W
360,112 million, respectively, since there are consolidated entities whose fair value of plan assets exceeded the present value of defined benefit obligations.
2)
The amounts recognized in relation to net defined benefit plan in the interim condensed consolidated statements
of comprehensive income for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
For the three-month
periods ended June 30
For the
six-month
periods ended June 30
(in millions of Won)
2026
2025
2026
2025
Current service costs
W
73,390
67,164
143,494
136,942
Net interest costs
(3,602
)
(3,635
)
(7,399
)
(7,891
)
W
69,788
63,529
136,095
129,051
33
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
20. Other Liabilities
Details of other liabilities as of
June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Due to customers for contract work
W
717,045
727,902
Advances received
730,232
500,831
Unearned revenue
134,696
102,275
Withholdings
187,556
209,450
Firm commitment liability
5,971
2,910
Others(*1)
41,632
30,827
W
1,817,132
1,574,195
Non-current
Unearned revenue
W
3,645
3,704
Others(*1)
101,256
102,894
W
104,901
106,598
(*1)
As of June 30, 2026 and December 31, 2025, the Group recognized the assumed liability amounting to
W
41,589 million and
W
43,850 million, respectively, related to unfavorable terms of a customer contract compared to market-terms upon the acquisition of Senex Energy
Limited.
34
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
21. Financial Instruments
(a)
Classification and fair value of financial instruments
1)
The classification of the carrying amounts and fair values of financial assets and financial liabilities by the
fair value hierarchy level as of June 30, 2026 and December 31, 2025 are as follows:
①
June 30, 2026
(in millions of Won)
Fair value
Book value
Level 1
Level 2
Level 3
Total
Financial assets
Fair value through profit or loss
Derivative assets
W
999,309
—
999,309
—
999,309
Short-term financial instruments
201,419
—
201,419
—
201,419
Equity securities
86,383
6,784
—
79,599
86,383
Debt securities
162,393
—
104,107
58,286
162,393
Other securities
769,979
—
—
769,979
769,979
Derivative hedging instruments(*2)
12,139
—
12,139
—
12,139
Fair value through other comprehensive income
Equity securities
1,713,081
1,260,227
23,318
429,536
1,713,081
Assets held for sale
7,833
—
7,833
—
7,833
Financial assets measured at amortized cost(*1)
Cash and cash equivalents
6,346,928
—
—
—
—
Trade accounts and notes receivable
11,854,744
—
—
—
—
Other receivables
2,922,629
—
—
—
—
Debt securities
442,289
—
—
—
—
Deposit instruments
7,429,274
—
—
—
—
W
32,948,400
1,267,011
1,348,125
1,337,400
3,952,536
Financial liabilities
Fair value through profit or loss
Derivative liabilities
W
37,916
—
37,916
—
37,916
Borrowings
47,469
47,469
—
—
47,469
Derivative hedging instruments(*2)
13,627
—
13,627
—
13,627
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable
5,514,721
—
—
—
—
Borrowings
30,356,453
—
30,339,532
—
30,339,532
Financial guarantee liabilities
27,973
—
—
—
—
Others
4,084,876
—
—
—
—
Other financial liabilities
81,997
—
—
—
—
W
40,165,032
47,469
30,391,075
—
30,438,544
(*1)
Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their
carrying amounts.
(*2)
The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the
risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and
foreign exchange rate changes in foreign currency which influence cash flow from borrowings.
35
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
21. Financial Instruments (cont’d)
②
December 31, 2025
(in millions of Won)
Fair value
Book value
Level 1
Level 2
Level 3
Total
Financial assets
Fair value through profit or loss
Derivative assets
W
656,181
—
656,181
—
656,181
Short-term financial instruments
491,841
—
491,841
—
491,841
Equity securities
95,230
16,695
—
78,535
95,230
Debt securities
137,647
—
91,699
45,948
137,647
Other securities
696,148
—
—
696,148
696,148
Derivative hedging instruments(*2)
6,392
—
6,392
—
6,392
Fair value through other comprehensive income
Equity securities
1,626,209
1,158,867
28,682
438,660
1,626,209
Assets held for sale
7,276
—
7,276
—
7,276
Financial assets measured at amortized cost(*1)
Cash and cash equivalents
7,049,800
—
—
—
—
Trade accounts and notes receivable
9,633,385
—
—
—
—
Other receivables
3,335,169
—
—
—
—
Debt securities
962,120
—
—
—
—
Deposit instruments
7,167,658
—
—
—
—
Assets held for sale
2,238
—
—
—
—
W
31,867,294
1,175,562
1,282,071
1,259,291
3,716,924
Financial liabilities
Fair value through profit or loss
Derivative liabilities
W
41,131
—
41,129
—
41,129
Borrowings
44,509
44,509
—
—
44,509
Derivative hedging instruments(*2)
16,443
—
16,443
—
16,443
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable
5,106,921
—
—
—
—
Borrowings
28,447,491
—
28,645,932
—
28,645,932
Financial guarantee liabilities
18,135
—
—
—
—
Others
4,075,379
—
—
—
—
Other financial liabilities
81,982
—
—
—
—
W
37,831,991
44,509
28,703,504
—
28,748,013
(*1)
Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their
carrying amounts.
(*2)
The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the
risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and
foreign exchange rate changes in foreign currency which influence cash flow from borrowings.
36
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
21. Financial Instruments (cont’d)
2)
Gains (losses) on financial instruments by category for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
①
For the
six-month
period ended June 30, 2026
(in millions of Won)
Finance income and costs
Other
comprehensive
income (loss)
Interest income
(expense)
Gain and loss
on valuation
Gain and loss on
foreign currency
Gain and loss
on disposal
Others
Total
Financial assets at fair value
through profit or loss
W
—
(31,393
)
—
20,736
35,588
24,931
—
Derivative assets
—
556,659
—
199,426
—
756,085
—
Financial assets at fair value
through other comprehensive income
—
—
—
—
(9,509
)
(9,509
)
44,943
Financial assets measured at
amortized cost
246,652
—
451,252
(37,685
)
8,980
669,199
—
Financial liabilities at fair value
through profit or loss
—
(929
)
(2,032
)
—
—
(2,961
)
—
Derivative liabilities
—
(36,465
)
—
(123,063
)
—
(159,528
)
759
Financial liabilities measured at
amortized cost
(567,062
)
—
(979,589
)
—
(41,339
)
(1,587,990
)
—
W
(320,410
)
487,872
(530,369
)
59,414
(6,280
)
(309,773
)
45,702
②
For the
six-month
period ended June 30, 2025
(in millions of Won)
Finance income and costs
Other
comprehensive
income (loss)
Interest income
(expense)
Gain and loss
on valuation
Gain and loss on
foreign currency
Gain and loss
on disposal
Others
Total
Financial assets at fair value
through profit or loss
W
—
(745
)
—
27,981
1,282
28,518
—
Derivative assets
—
(234,893
)
—
141,784
—
(93,109
)
—
Financial assets at fair value
through other comprehensive income
—
—
—
—
27,487
27,487
14,111
Financial assets measured at
amortized cost
252,225
—
(447,731
)
(40,949
)
(3,983
)
(240,438
)
—
Financial liabilities at fair value
through profit or loss
—
(1,003
)
—
—
—
(1,003
)
—
Derivative liabilities
—
(237,140
)
—
(227,318
)
—
(464,458
)
(259
)
Financial liabilities measured at
amortized cost
(525,259
)
—
816,965
—
(19,231
)
272,475
—
W
(273,034
)
(473,781
)
369,234
(98,502
)
5,555
(470,528
)
13,852
(b)
Financial risk management
The Group is exposed to credit risk, liquidity risk and market risk arising from financial assets and liabilities. The Group’s financial
risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as of and for the year ended December 31, 2025.
37
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
22. Share Capital and Capital Surplus
(a) Share capital
as of June 30, 2026 and December 31, 2025 is as follows:
(Share, in Won)
June 30, 2026
December 31, 2025
Numbers of authorized shares
200,000,000
200,000,000
Par value per share
W
5,000
5,000
Number of shares issued(*1,2)
79,241,527
80,932,952
Share capital(*3)
W
482,403,125,000
482,403,125,000
(*1)
As of June 30, 2026, total number of American Depository Receipts (ADRs) outstanding in overseas stock
market amounts to 12,701,316 and such ADRs are equivalent to 3,175,329 shares of common stock.
(*2)
Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2026, the Company decided
to retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2026. As a result, as of June 30, 2026, the Company’s total number of issued shares has decreased.
(*3)
As of June 30, 2026, the difference between the ending balance of common stock and the aggregate par value
of issued common stock is
W
86,195 million due to retirement of 17,239,098 treasury stocks.
(b) Details of capital
surplus as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Share premium
W
463,825
463,825
Gain on disposal of treasury shares
808,994
808,994
Other capital surplus
255,219
412,297
W
1,528,038
1,685,116
23. Other Components of Equity
Details of other components of equity as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Capital adjustment arising from investments in
equity-accounted investees
W
488,253
126,043
Gain on valuation of equity securities
386,655
341,198
Gain on translation of foreign operations
1,655,444
1,016,290
Loss on valuation of derivatives
(158
)
(917
)
Other equity adjustments
79,758
78,896
W
2,609,952
1,561,510
24. Treasury Shares
Based on the Board of Directors’ resolution, the Group holds treasury shares for business purposes including price stabilization. Changes in treasury
shares for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(shares, in millions of Won)
June 30, 2026
December 31, 2025
Number of
shares
Amount
Number of
shares
Amount
Beginning
5,312,173
W
1,176,316
7,003,598
W
1,550,862
Retirement of treasury shares
(1,691,425
)
(374,545
)
(1,691,425
)
(374,546
)
Ending
3,620,748
W
801,771
5,312,173
W
1,176,316
38
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
25. Revenue
(a)
Disaggregation of revenue
1) Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
①
For the
six-month
period ended June 30, 2026
(in millions of Won)
Infrastructure
Steel
Trading
Construction
Logistics and
others
Materials of
Rechargeable battery
Others
Total
Types of revenue
Revenue from sales of goods
W
18,353,313
12,624,820
8,894
5,375
1,170,512
—
32,162,914
Revenue from services
386,567
1,092,230
76,433
114,448
3,615
—
1,673,293
Revenue from construction contract
—
—
2,958,622
—
5,813
—
2,964,435
Others
53,226
232,945
12,524
21,963
—
13,491
334,149
W
18,793,106
13,949,995
3,056,473
141,786
1,179,940
13,491
37,134,791
Timing of revenue recognition
Revenue recognized at a point in time
W
18,406,539
12,857,765
47,650
27,338
1,170,512
13,491
32,523,295
Revenue recognized over time
386,567
1,092,230
3,008,823
114,448
9,428
—
4,611,496
W
18,793,106
13,949,995
3,056,473
141,786
1,179,940
13,491
37,134,791
②
For the
six-month
period ended June 30, 2025
(in millions of Won)
Infrastructure
Steel
Trading
Construction
Logistics and
others
Materials of
Rechargeable battery
Others
Total
Types of revenue
Revenue from sales of goods
W
18,190,227
10,862,377
—
1,855
1,069,670
—
30,124,129
Revenue from services
420,331
1,212,207
62,740
112,023
399
6,618
1,814,318
Revenue from construction contract
—
—
2,887,572
—
22,161
—
2,909,733
Others
84,693
2,423
5,506
22,997
—
28,564
144,183
W
18,695,251
12,077,007
2,955,818
136,875
1,092,230
35,182
34,992,363
Timing of revenue recognition
Revenue recognized at a point in time
W
18,274,920
10,864,800
108,433
24,852
1,069,670
28,564
30,371,239
Revenue recognized over time
420,331
1,212,207
2,847,385
112,023
22,560
6,618
4,621,124
W
18,695,251
12,077,007
2,955,818
136,875
1,092,230
35,182
34,992,363
2) Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the
three-month periods ended June 30, 2026 and 2025 are as follows:
①
For the three-month period ended June 30, 2026
(in millions of Won)
Green Infrastructure
Steel
Construction
Trading
Energy and
others
Green materials and
Energy
Others
Total
Types of revenue
Revenue from sales of goods
W
9,215,308
6,937,556
8,894
(1,774
)
574,315
—
16,734,299
Revenue from services
204,664
489,061
41,120
66,365
2,077
(3,116
)
800,171
Revenue from construction contract
—
—
1,546,730
—
(2,400
)
—
1,544,330
Others
25,265
131,792
2,654
11,567
—
8,606
179,884
W
9,445,237
7,558,409
1,599,398
76,158
573,992
5,490
19,258,684
Timing of revenue recognition
Revenue recognized at a point in time
W
9,240,573
7,069,348
24,939
9,793
574,315
8,606
16,927,574
Revenue recognized over time
204,664
489,061
1,574,459
66,365
(323
)
(3,116
)
2,331,110
W
9,445,237
7,558,409
1,599,398
76,158
573,992
5,490
19,258,684
39
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
25. Revenue (cont’d)
②
For the three-month period ended June 30, 2025
(in millions of Won)
Green Infrastructure
Steel
Construction
Trading
Energy and
others
Green materials and
Energy
Others
Total
Types of revenue
Revenue from sales of goods
W
9,060,502
5,591,325
—
—
452,627
—
15,104,454
Revenue from services
196,918
628,479
36,129
28,819
399
1,673
892,417
Revenue from construction contract
—
—
1,445,177
—
18,020
—
1,463,197
Others
52,585
837
4,567
12,144
—
25,386
95,519
W
9,310,005
6,220,641
1,485,873
40,963
471,046
27,059
17,555,587
Timing of revenue recognition
Revenue recognized at a point in time
W
9,113,087
5,592,162
97,664
12,144
452,627
25,386
15,293,070
Revenue recognized over time
196,918
628,479
1,388,209
28,819
18,419
1,673
2,262,517
W
9,310,005
6,220,641
1,485,873
40,963
471,046
27,059
17,555,587
(b)
Details of contract assets and liabilities from contracts with customers as of June 30, 2026 and
December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Receivables
Trade accounts and notes receivable
W
11,854,744
9,633,385
Contract assets
Due from customers for contract work
1,494,896
1,584,297
Contract liabilities
Advance received
734,424
505,394
Due to customers for contract work
717,045
727,902
Unearned revenue
132,879
100,967
26. Contract under Input Method
(a)
Details of outstanding contracts as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Construction
segment
Others
Construction
segment
Others
Accumulated cost
W
18,300,988
170,635
16,843,416
226,619
Accumulated contract profit
1,576,274
39,122
1,325,037
65,174
Accumulated contract loss
(707,384
)
(6,793
)
(723,085
)
(6,795
)
Accumulated contract revenue
19,169,878
202,964
17,445,368
284,998
(b)
Details of due from customers for contract work and due to customers for contract work as of June 30, 2026
and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Construction
segment
Others
Construction
segment
Others
Due from customers for contract
W
1,482,224
26,610
1,560,490
33,968
Due to customers for contract work
(710,532
)
(6,513
)
(724,368
)
(3,534
)
W
771,692
20,097
836,122
30,434
40
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
26. Contract under Input Method (cont’d)
(c)
Details of the provisions for construction loss as of June 30, 2026 and December 31, 2025 are as
follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Construction segment
W
121,232
113,391
Others
662
915
W
121,894
114,306
(d)
For the
six-month
period ended June 30, 2026, the total contract
revenues and the estimated total contract costs have changed and the impact of such changes on profit before income tax for the current and future periods are as follows:
(in millions of Won)
Changes in profit (loss) of contract
Changes in total
contract revenue
Changes in estimated
total contract costs
Net income
Future income
(loss)
Total
Construction segment
W
719,370
670,430
(41,787
)
90,727
48,940
Others
3,381
2,776
220
385
605
W
722,751
673,206
(41,567
)
91,112
49,545
The above details of impact on profit for the current and future periods are calculated based on the total contract costs
estimated considering the events that occurred for the period from the commencement date of the contract to June 30, 2026 and the estimated total contract revenue as of June 30, 2026. The estimated total contract costs and revenue are
subject to change in future periods.
(e) Uncertainty of estimates
1) Total contract revenues
Total
contract revenues are measured based on contractual amount initially agreed. However, the contract revenues can increase due to additional contract work, claims and incentive payments, or decrease due to penalty when the completion of contract is
delayed due to the Group’s fault. Therefore, this measurement of contract revenues is affected by the uncertainty of the occurrence of future events.
2) Total contract costs
Contract
revenues are recognized based on the percentage of completion, which is measured on the basis of the gross cost amount incurred to date. Total contract costs are estimated based on estimates of future material costs, labor costs, outsourcing costs.
There is uncertainty in estimates on future contract costs due to various internal and external factors such as fluctuation of market, the risk of business partner and the experience of project performance and others. The significant assumptions
including uncertainty of the estimate of total contract costs are as follows:
Method of significant assumption
Material cost
Assumption based on recent purchasing price and quoted market price
Labor cost
Assumption based on standard monthly and daily labor cost
Outsourcing cost
Assumption based on the past experience rate of similar project and market price
Management reviews estimated contract costs at each reporting period end and adjusts them, if necessary.
41
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
27. Selling and Administrative Expenses
(a)
Other administrative expenses
Details of other administrative expenses for each of the three-month and
six-month
periods ended
June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Wages and salaries
W
298,953
275,133
618,629
587,901
Expenses related to post-employment benefits
28,102
21,657
55,177
46,149
Other employee benefits
71,267
73,595
153,276
155,730
Travel
16,593
14,291
30,487
26,259
Depreciation
46,083
41,496
92,600
89,582
Amortization
36,980
28,829
74,262
57,046
Communication
2,787
2,491
6,973
6,252
Electricity
4,030
3,556
8,016
8,279
Taxes and public dues
35,090
35,241
44,798
54,623
Rental
9,299
10,939
18,440
20,622
Repairs
2,069
2,684
3,874
5,295
Entertainment
7,141
2,856
11,184
6,209
Advertising
22,009
23,977
42,495
42,214
Research & development
54,727
47,295
106,557
94,165
Service fees
86,894
77,380
139,437
130,724
Vehicles maintenance
1,918
2,047
4,406
4,195
Industry association fee
3,478
3,430
7,313
7,277
Conference
5,608
5,866
11,839
11,911
Bad debt expenses
30,961
15,339
58,683
41,201
Others
19,915
20,591
47,206
28,642
W
783,904
708,693
1,535,652
1,424,276
(b) Selling and logistic expenses
Details of selling and logistics expenses for each of the three-month and
six-month
periods ended
June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Freight and custody expenses
W
12,991
5,781
25,804
10,968
Operating expenses for distribution center
175
191
272
374
Sales commissions
22,590
21,451
43,662
39,374
Sales advertising
484
308
682
402
Sales promotion
2,489
2,506
4,811
5,053
Sample
428
595
748
1,332
Sales insurance premium
9,987
9,138
19,091
18,625
Contract cost
4,085
25,559
12,600
37,554
Others
3,196
3,961
6,588
7,662
W
56,425
69,490
114,258
121,344
42
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
28. Finance Income and Costs
Details of finance income
and costs for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Finance income
Interest income
W
126,734
126,553
246,652
252,225
Dividend income
6,645
11,529
26,080
28,769
Gain on foreign currency transactions
367,509
376,226
720,978
633,555
Gain on foreign currency translations
61,511
692,583
521,729
924,274
Gain on derivatives transactions
89,821
89,475
208,052
153,703
Gain on valuations of derivatives
133,119
(56,214
)
558,602
23,934
Gain on disposals of financial assets at fair value through profit of loss
4,387
15,083
24,301
31,317
Gain on valuations of financial assets at fair value through profit or loss
3,035
5,155
11,400
15,806
Others
2,245
3,662
5,809
5,148
W
795,006
1,264,052
2,323,603
2,068,731
Finance costs
Interest expenses
W
274,407
262,903
567,062
525,259
Loss on foreign currency transactions
404,170
435,025
790,039
708,746
Loss on foreign currency translations
195,626
264,680
983,036
479,849
Loss on derivatives transactions
85,084
118,010
131,689
239,237
Loss on valuation of derivatives
16,558
464,676
38,409
495,967
Loss on disposal of trade accounts and notes receivable
20,194
20,930
37,685
40,949
Loss on disposals of financial assets at fair value through profit or loss
2,691
2,435
3,565
3,336
Loss on valuations of financial assets at fair value through profit or loss
12,962
9,458
42,793
16,551
Loss on valuations of financial liabilities at fair value through profit or loss
510
922
929
1,003
Others
28,620
12,059
38,170
28,362
W
1,040,822
1,591,098
2,633,377
2,539,259
43
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
29. Other
Non-Operating
Income and Expenses
Details of other
non-operating
income and expenses for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Other
non-operating
income
Recovery of other bad debt expenses
W
1,000
1,304
13,495
1,649
Gain on disposals of investment in subsidiaries, associates and joint ventures
476,064
(474
)
480,032
24,973
Gain on disposals of property, plant and equipment
1,008
19,855
2,465
22,018
Gain on disposal of assets held for sale
3,488
—
9,788
52,148
Gain on valuation of firm commitment
20,622
9,049
34,062
18,655
Reversal of other provisions
7,979
3,608
23,087
7,427
Gain on disposals of emission rights
—
—
3
4
Others
43,025
17,315
128,572
56,647
W
553,186
50,657
691,504
183,521
Other
non-operating
expenses
Other bad debt expenses
W
264
13,490
6,329
13,490
Loss on disposals of investments in subsidiaries, associates and joint ventures
90,546
556
99,071
752
Loss on disposals of property, plant and equipment
42,402
39,760
65,202
53,034
Impairment loss on property, plant and equipment
123,375
65,579
123,508
113,159
Impairment loss on intangible assets
5,288
25,667
5,703
25,678
Loss on disposal of assets held for sale
(1,229
)
653
—
653
Loss on valuation of firm commitment
3,921
17,873
13,992
20,320
Donations
7,366
10,327
33,051
31,850
Idle tangible asset expenses
1,376
1,165
3,163
2,486
Increase to provisions
3,622
3,338
4,254
4,643
Others
10,777
12,209
49,427
37,702
W
287,708
190,617
403,700
303,767
44
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
30. Expenses by Nature
Expenses that are recorded by
nature as cost of sales, selling and administrative expenses, impairment loss on other receivables and other
non-operating
expenses in the statements of comprehensive income for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows (excluding finance costs and income tax expense):
(in millions of Won)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Raw material used, changes in inventories and others
W
11,106,620
8,945,921
21,882,976
19,453,869
Employee benefits expenses
1,276,911
1,206,538
2,609,495
2,472,507
Outsourced processing cost
2,093,250
2,288,309
4,006,102
4,325,967
Electricity and water expenses
266,128
313,885
483,197
677,904
Depreciation(*1)
969,295
908,471
1,889,359
1,818,192
Amortization
119,610
108,297
253,386
221,053
Freight and custody expenses
907,509
805,253
1,580,175
1,367,470
Sales commissions
22,590
21,451
43,662
39,374
Loss on disposal of property, plant and equipment
42,402
39,760
65,202
53,034
Impairment loss on property, plant and equipment
123,375
65,579
123,508
113,159
Impariment loss on intangible assets
5,288
25,667
5,703
25,678
Donations
7,366
10,327
33,051
31,850
Other expenses
1,787,035
2,399,574
3,036,829
3,520,460
W
18,727,379
17,139,032
36,012,645
34,120,517
(*1)
Including depreciation of investment property.
31. Income Taxes
The effective tax rates of the Group
for each of the
six-month
periods ended June 30, 2026 and 2025 are 21.77% and 41.96%, respectively.
(a)
Application of the Consolidated Tax Payment System
In 2025, the Group has applied the consolidated tax payment system, under which a controlling company and its domestic subsidiaries, if
economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is responsible for filing and paying the corporate income tax on behalf of
the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.
Domestic and foreign subsidiaries that are not included in the consolidated tax payment system calculate and pay corporate income tax based on
each legal entity as a separate tax unit.
Deferred tax assets and deferred tax liabilities of entities included in the consolidated tax
payment system are offset when the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same tax authority and there is
an intention to settle them on a net basis.
45
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
31. Income Taxes (cont’d)
(b)
Global minimum tax
In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the parent company is domiciled, which is effective for the
fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the
six-month
period ended June 30, 2026 as it is subject to global minimum
tax under the OECD’s Pillar Two Model Rules. The Group reviewed subsidiaries qualifying as taxpayers, including the parent company and, as a result, did not recognize any income tax expense for the
six-month
period ended June 30, 2026 as the impact of the global minimum tax on the consolidated financial statements as of June 30, 2026 would not be significant. Furthermore, the Group applies
temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012
Income Taxes
. Accordingly, it did not recognize deferred tax
assets and liabilities related to the global minimum tax and does not disclose information related to deferred income tax.
46
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
32. Earnings per Share
(a)
Basic earnings per share for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are calculated as follows:
(in Won, except per share information)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Profit attributable to controlling interest
W
684,754,194,987
159,865,185,533
1,151,960,457,392
462,160,578,704
Weighted-average number of common shares outstanding(*1)
75,620,779
75,620,779
75,620,779
75,620,779
Basic earnings per share
W
9,055
2,114
15,233
6,112
(*1)
The weighted-average number of common shares used to calculate basic earnings per share is as follows:
(shares)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Total number of common shares issued
79,241,527
80,932,952
80,082,567
81,773,992
Weighted-average number of treasury shares
(3,620,748
)
(5,312,173
)
(4,461,788
)
(6,153,213
)
Weighted-average number of common shares outstanding
75,620,779
75,620,779
75,620,779
75,620,779
(b)
The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of
June 30, 2026. The diluted earnings per share for each of the
six-month
periods ended June 30, 2026 and 2025 are the same as the basic earnings per share due to the anti-dilutive effect.
47
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
33. Related Party Transactions
(a)
Related
parties of the Group as of June 30, 2026 are as follows:
Type
Company
Investments in associates and joint ventures
[Domestic]
POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd.,
SNNC and others.
[Foreign]
Roy Hill Holdings Pty Ltd,
POSCO-NPS
Niobium LLC, KOBRASCO,
PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd,
South -East Asia Gas Pipeline Company Ltd.,
9404-5515 Quebec Inc.,
KOREA LNG LTD., Nickel Mining Company SAS and others.
(b)
Material transactions between the Group and its related parties for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Sales and others(*1)
Purchase and others
Sales
Dividends
Others
Purchase
of material
Others
Associates and joint ventures(*1)
New Songdo International City
Development, LLC
W
26,357
—
6,474
—
31
SNNC
55,321
—
3,018
174,267
124
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER
2,213
—
—
22
—
Gunggi Green Energy
—
—
—
—
3,875
POS SeAH Steel Wire(Nantong) Co., Ltd.
17,946
—
—
190
—
South-East Asia Gas Pipeline Company Ltd.
—
16,776
—
—
—
POSCO MC MATERIALS
68,222
—
—
1,258
266
Samcheok Blue Power Co., Ltd.
136,370
—
—
—
—
POSCO(Guangdong) Automotive Steel Co., Ltd
105,495
—
—
132,342
—
HBIS-POSCO Automotive Steel Co., Ltd
8,634
—
—
63,328
48
Roy Hill Holdings Pty Ltd
—
96,438
—
845,604
—
Others
112,973
36,466
983
291,209
10,076
W
533,531
149,680
10,475
1,508,220
14,420
(*1)
As of June 30, 2026, the Group provides payment guarantees to its related parties (see Note 34).
48
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
33. Related Party Transactions (cont’d)
2)
For the
six-month
period ended June 30, 2025
(in millions of Won)
Sales and others(*1)
Purchase and others
Sales
Dividends
Others
Purchase of
material
Others
Associates and joint ventures(*1)
New Songdo International City
Development, LLC
W
42,264
—
—
—
54
SNNC
48,646
—
4
355,240
2,596
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER
25,818
—
—
3
—
Gunggi Green Energy
7,103
—
—
—
2,715
POS-SEAHSTEELWIRE
(TIANJIN)CO.,Ltd
5,703
—
—
7
—
POSCO SeAH Steel Wire(Nantong) Co., Ltd.
28,060
—
—
495
—
South-East Asia Gas Pipeline Company Ltd.
—
11,941
—
—
—
POSCO MC MATERIALS
69,133
3,000
—
3,400
271
Samcheok Blue Power Co., Ltd.
103,083
2,795
—
—
—
POSCO(Guangdong) Automotive Steel Co., Ltd
92,510
—
—
121,003
—
HBIS-POSCO Automotive Steel Co., Ltd
15,387
—
—
20,486
—
Roy Hill Holdings Pty Ltd
1,682
118,313
—
758,356
—
Others
106,651
73,224
594
160,614
23,350
W
546,040
209,273
598
1,419,604
28,986
(*1)
As of June 30, 2025, the Group provides payment guarantees to its related parties (see Note 34).
(c)
Outstanding balances arising from material transactions between the Group and its related parties as of
June 30, 2026 and December 31, 2025 are as follows:
1)
June 30, 2026
(in millions of Won)
Receivables(*1)
Payables
Trade accounts
and
notes receivable
Loans
Others
Total
Trade accounts
and
notes payable
Others
Total
Associates and joint ventures
New Songdo International City
Development, LLC
W
27,915
—
100
28,015
—
—
—
Gunggi Green Energy
—
—
14,832
14,832
—
791
791
POSCO(Guangdong) Automotive Steel Co., Ltd
40,785
1,037
—
41,822
33,175
—
33,175
AMCI (WA) PTY LTD
—
143,618
—
143,618
—
—
—
HBIS-POSCO Automotive Steel Co.,Ltd
3,319
—
—
3,319
14,306
143
14,449
Samcheok Blue Power Co., Ltd.
327,840
—
139
327,979
—
386
386
Nickel Mining Company SAS
—
79,249
1,187
80,436
—
358
358
POS-SeAH
Steel Wire(Nantong) Co., Ltd.
9,679
—
—
9,679
118
—
118
POSCO MC MATERIALS
15,932
—
22
15,954
49
317
366
Pocheon-Hwado Highway Corp.
5,491
—
—
5,491
—
—
—
UITrans LRT Co., Ltd.
—
39,331
4,116
43,447
—
—
—
Roy Hill Holdings Pty Ltd
53,900
—
13,273
67,173
482,247
14
482,261
SNNC
17,105
—
166,322
183,427
4,330
103
4,433
FQM Australia Holdings Pty Ltd
—
317,881
—
317,881
—
—
—
Others
15,673
34,894
146,195
196,762
17,369
58,965
76,334
W
517,639
616,010
346,186
1,479,835
551,594
61,077
612,671
(*1)
As of June 30, 2026, the Group recognizes an allowance for doubtful account for receivables above
amounting to
W
579,703 million.
49
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
33. Related Party Transactions (cont’d)
2)
December 31, 2025
(in millions of Won)
Receivables(*1)
Payables
Trade accounts
and
notes receivable
Loans
Others
Total
Trade accounts
and
notes receivable
Others
Total
Associates and joint ventures
New Songdo International City
Development, LLC
W
25,497
—
10,100
35,597
—
4
4
Gunggi Green Energy
—
—
14,832
14,832
—
—
—
POSCO(Guangdong) Automotive Steel Co., Ltd
32,218
6,212
—
38,430
37,313
—
37,313
AMCI (WA) PTY LTD
—
136,580
—
136,580
—
—
—
HBIS-POSCO Automotive Steel Co.,Ltd
3,701
—
—
3,701
15,584
207
15,791
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd
4,965
—
—
4,965
—
—
—
Samcheok Blue Power Co., Ltd.
273,880
—
193
274,073
—
381
381
Nickel Mining Company SAS
—
75,857
707
76,564
—
358
358
POS-SeAH
Steel Wire(Nantong) Co., Ltd.
13,334
—
—
13,334
150
—
150
POSCO MC MATERIALS
10,838
—
358
11,196
894
506
1,400
Pocheon-Hwado Highway Corp.
5,491
—
—
5,491
—
2
2
UITrans LRT Co., Ltd.
—
39,333
4,214
43,547
—
—
—
Roy Hill Holdings Pty Ltd
39,761
—
9,610
49,371
426,829
—
426,829
SNNC
10,694
—
28,433
39,127
5,439
447
5,886
FQM Australia Holdings Pty Ltd
—
292,591
—
292,591
—
—
—
Others
27,327
21,995
138,447
187,769
49,756
71,663
121,419
W
447,706
572,568
206,894
1,227,168
535,965
73,568
609,533
(*1) As of December 31, 2025, the Group recognizes an allowance for doubtful account for receivables
above amounting to
W
531,031 million.
(d)
Major financial transactions between the Group and its related parties for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Lend
Collect
Others(*1)
Ending
Associates and joint ventures
UITrans LRT Co., Ltd.
W
39,333
—
(4
)
2
39,331
PT. Tanggamus Electric Power
2,588
—
(670
)
192
2,110
Nickel Mining Company SAS
75,857
—
—
3,392
79,249
Hyo-chun
Co., Ltd.
2,382
—
—
—
2,382
AMCI (WA) PTY LTD
136,580
—
(7,284
)
14,322
143,618
FQM Australia Holdings Pty Ltd
292,591
—
—
25,290
317,881
POHANG E&E Co. , LTD
4,672
658
—
—
5,330
POSCO(Guangdong) Automotive Steel Co., Ltd.
6,212
19,437
(25,286
)
674
1,037
Gale International Korea, LLC
444
—
—
(444
)
—
CAML
5,766
11,892
—
605
18,263
POS-AUSTEM
Suzhou Automotive
6,143
—
—
666
6,809
W
572,568
31,987
(33,244
)
44,699
616,010
(*1)
Including adjustments of foreign currency translation differences and others.
50
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POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
33. Related Party Transactions (cont’d)
2)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Lend
Collect
Others(*1)
Ending
Associates and joint ventures
UITrans LRT Co., Ltd.
W
51,051
—
(11,718
)
—
39,333
PT. Tanggamus Electric Power
3,854
—
(3,089
)
1,823
2,588
Nickel Mining Company SAS
68,793
—
—
7,064
75,857
KRAKATAU
POS-CHEM
DONG-SUH
CHEMICAL
1,470
—
(1,435
)
(35
)
—
Hyo-chun
Co., Ltd.
2,382
—
—
—
2,382
AMCI (WA) PTY LTD
142,767
73
(13,657
)
7,397
136,580
POS-AUSTEM
WUHAN AUTOMOTIVE CO.,LTD
5,636
—
(5,733
)
97
—
FQM Australia Holdings Pty Ltd
292,764
—
—
(173
)
292,591
POHANG E&E Co. , LTD
3,228
1,444
—
—
4,672
POSCO(Guangdong) Automotive Steel Co., Ltd.
6,162
64,858
(64,914
)
106
6,212
Gale International Korea, LLC
100
344
—
—
444
P&O Chemical Co., Ltd.
3,060
—
—
(3,060
)
—
CAML
—
5,766
—
—
5,766
POS-AUSTEM
Suzhou Automotive
—
6,143
—
—
6,143
W
581,267
78,628
(100,546
)
13,219
572,568
(*1)
Including adjusted foreign currency translation differences and others.
(e)
For each of the
six-month
periods ended June 30, 2026 and
2025, there were additional investments in associates and joint ventures and others amounting to
W
867,853 million and
W
151,870 million, respectively.
(f)
For each of the
six-month
periods ended June 30, 2026 and 2025,
details of compensations to key management officers are as follows:
(in millions of Won)
June 30,
2026
June 30,
2025
Short-term benefits
W
86,665
84,577
Long-term benefits
1,551
3,086
Retirement benefits
12,028
11,787
W
100,244
99,450
Key management officers include directors (including
non-standing
directors),
executive officials and fellow officials who have significant influences and responsibilities in the Group’s business and operations.
34.
Commitments and Contingencies
(a)
Contingent liabilities
Contingent liabilities can change due to unforeseen circumstances; therefore, management continuously reviews whether the likelihood of an
outflow of resources embodying economic benefits has increased. Except in extremely rare circumstances where it cannot be reliably estimated, if the likelihood of an outflow of future economic benefits has increased, even if it had been treated as a
contingent liability in the past, such changes in likelihood are recognized as a provision in the consolidated financial statements for the period in which the change occurred.
Management of the Group makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and assumptions
are based on the evaluation of current circumstances and appraisals with the support of internal and/or external specialists.
Management
of the Group regularly analyzes the most current information on contingent events and provides information regarding provisions related to contingent losses, including potential estimated legal costs. Such assessments are based on the consultations
with internal and external legal counsel. In making the decision on the recognition of a provision, management considers the likelihood of an outflow of resources embodying economic benefits to settle the obligation and the possibility of making a
reliable estimate of the amount.
51
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
(b)
Details of guarantees
1)
Contingent liabilities on outstanding guarantees provided by the Group as of June 30, 2026 are as follows:
(in millions of Won)
Guarantee limit
Guarantee amount
Guarantor
Guarantee beneficiary
Financial institution
Foreign currency
Won
equivalent
Foreign
currency
Won
equivalent
[The Company]
POSCO HOLDINGS INC.
POSCO Asia Co., Ltd.
Credit Agricole and others
USD
200,000,000
308,301
120,000,001
184,980
POSCO Argentina S.A.U
HSBC and others
USD
1,079,900,000
1,664,664
1,059,305,000
1,632,919
POSCO
POSCO ASSAN TST STEEL INDUSTRY Inc
Citibank and others
USD
122,850,000
189,373
122,850,000
189,373
POSCO INTERNATIONAL Corporation
PT. Bio Inti Agrindo
BTPN and others
IDR
631,200,000,000
54,536
631,200,000,000
54,536
POSCO ASSAN TST STEEL INDUSTRY Inc
Citibank and others
USD
13,650,000
21,041
13,650,000
21,041
POSCO INTERNATIONAL Deutschland GmbH
Bank Mendes Gans Amsterdam
USD
50,000,000
77,075
10,282,050
15,850
POSCO INTERNATIONAL JAPAN Corp.
—
—
POSCO INTERNATIONAL AMERICA Corp.
—
—
POSCO INTERNATIONAL SINGAPORE Pte. Ltd.
—
—
POSCO INTERNATIONAL Malaysia SDN BHD
—
—
POSCO INTERNATIONAL ITALIA S.R.L.
—
—
POSCO INTERNATIONAL MEXICO S.A. de C.V.
—
—
POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD
—
—
POSCO INTERNATIONAL MEXICO
E-MOBILITY
S.A DE
C.V.
—
—
POSCO INTERNATIONAL POLAND
E-MOBILITY
Sp.z.o.o
—
—
GRAIN TERMINAL HOLDING PTE. LTD.
1,700,000
2,621
POSCO INTERNATIONAL MEXICO
E-MOBILITY
S.A DE
C.V.
Export-Import Bank of
Korea and others
USD
52,054,800
80,242
51,379,000
79,201
POSCO INTERNATIONAL POLAND
E-MOBI
LITY SP. Z
O.O.
BNP Paribas Polska S.A.
EUR
23,678,000
41,699
23,678,000
41,699
PT. KRAKATAU POSCO ENERGY
POSCO Asia Co., Ltd. and others
USD
102,903,407
158,626
23,450,000
36,148
PT POSCO INTERNATIONAL ENP INDONESIA
PT Bank Negara Indonesia
USD
750,000
1,156
750,000
1,156
POSCO INTERNATIONAL ALASKA ENERGY LLC
Glenfarne Alaska Partners, LLC
USD
45,000,000
69,368
45,000,000
69,368
AGPA PTE. LTD.
SMBC Singapore
USD
20,880,000
32,187
20,880,000
32,187
POSCO STEELEON CO.,LTD.
Myanmar POSCO C&C Company, Limited.
POSCO Asia Co., Ltd.
CNY
121,678,106
27,617
101,398,422
23,014
POSCO FUTURE M CO., LTD.
ULTIUM CAM LIMITED PARTNERSHIP
Shinhan Bank
USD
100,000,000
154,150
100,000,000
154,150
Investissement Quebec,
Strategic Innovation Fund
CAD
299,562,500
325,046
231,912,630
251,641
FUTURE GRAPH CO., LTD.
Korea Development Bank
KRW
250,000
250,000
60,700
60,700
[Associates and joint ventures]
POSCO HOLDINGS INC.
NICKEL MINING COMPANY SAS
SMBC
EUR
46,000,000
81,010
46,000,000
81,010
PT NICOLE METAL INDUSTRY
STANDARD CHARTERED and others
USD
40,180,000
61,938
18,757,063
28,914
POSCO INTERNATIONAL Corporation
GLOBAL KOMSCO Daewoo LLC
Hana Bank Bahrain
USD
6,650,000
10,251
4,200,000
6,474
POSCO Eco & Challenge Co., Ltd.
Chun-cheon Energy Co., Ltd (*1)
Kookmin Bank and others
KRW
149,200
149,200
116,590
116,590
[Others]
POSCO Eco & Challenge Co., Ltd.
Subcontractors for maintenance projects, etc. (*2)
Kookmin Bank and others
KRW
313,452
313,452
3,171
3,171
POSCO AUSTRALIA PTY LTD
Department of Trade and Investment (NSW Government) and others
Woori Bank and others
AUD
18,744,862
19,903
18,744,862
19,903
PT. Prime Agri
Resources
Koperasi Bakomo Diri Maju (KBDM) and others
Koperasi Simpan Pinjam Sahabat Mitra Sejati
and others
IDR
403,031,168,890
34,822
403,031,168,890
34,822
POSCO COATED STEEL (THAILAND) CO., LTD.
AMATA NATURAL GAS DISTRIBUTION
COMPANY LIMITED and others
SC Bank
THB
56,065,000
2,599
56,065,000
2,599
BUREAU OF INDIAN STANDARDS (BIS)
SC Bank
USD
20,000
31
20,000
31
POSCO Maharashtra Steel Private Limited
Gail India and others
Deutsche Bank and others
INR
1,049,571,593
17,108
1,049,571,593
17,108
(*1)
This commitment is a PF commitment that provides credit enhancement through payment guarantees in connection
with SOC projects as of June 30, 2026.
(*2)
This commitment is a PF commitment that guarantees the interim payment loans of purchasers in connection with
maintenance projects and other projects as of June 30, 2026.
52
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
2)
Details of credit enhancements by type of the Group’s PF business as of June 30, 2026 are as
follows:
①
Maintenance projects and others
a.
Information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund
supplementation is as follows:
(in millions of Won)
Balance of the loans
Provider
Projects(*1)
Borrower
Type
Credit enhancement
measures
Agreed
amount
Executed
amount
Total
Within 3
months
3~6
months
6 months
~1 year
1 year ~2
years
2 years ~3
years
After
3 years
[The Company]
POSCO Eco & Challenge Co., Ltd.
Other projects
JB CLARK
HILLS CORP
Main PF
Debt assumption
W
49,020
39,925
39,925
—
39,925
—
—
—
—
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.
Other projects
New Songdo
International
City
Development,
LLC
Mortgage
loan
Debt assumption
524,500
354,000
354,000
—
—
334,000
—
20,000
—
[Others]
POSCO Eco & Challenge Co., Ltd.
Maintenance
projects
Bangbae
Shindonga
Apartment
Reconstruction
and
Maintenance
Project
Association,
etc.
Main PF
Debt assumption
1,495,216
702,801
702,801
—
34,327
111,947
—
305,198
251,329
Other projects
Civic Center PFV
Main PF
Debt assumption
45,000
45,000
45,000
—
—
—
—
—
45,000
Other projects
LandmarkSewoon
Main PF
Debt assumption
50,000
50,000
50,000
—
—
—
—
—
50,000
Other projects
DAON INP Co.,
Ltd.
Main PF
Joint guarantee
78,000
60,000
60,000
—
—
—
—
60,000
—
Other projects
Jeonju
Eco-city
Main PF
Debt assumption
53,300
22,000
22,000
22,000
—
—
—
—
—
Other projects
Apcity HNG
Main PF
Debt assumption
60,000
60,000
60,000
—
—
—
—
60,000
—
Other projects
ISLAND ONE
CO., LTD.
Main PF
Debt assumption
50,000
50,000
50,000
—
—
—
50,000
—
—
Other projects
KOREA ASSET
DEVELOPMENT
CO.,LTD.
Main PF
Debt assumption
48,000
40,000
40,000
—
—
—
40,000
—
—
Other projects
Daegu MBC
Development
PFV Co., Ltd.
Main PF
Debt assumption
80,000
80,000
80,000
—
—
—
80,000
—
—
Other projects
Sinhwa AMC
Co.,Ltd.
Main PF
Debt assumption
80,000
80,000
80,000
—
—
—
80,000
—
—
Other projects
SEUM PACIFIC
CO.,LTD.
Main PF
Debt assumption
48,000
40,000
40,000
—
—
—
—
—
40,000
POSCO DX
Other projects
Jeonnong school
keeper co.
and others(*2)
Main PF
Supplemental
funding
agreement and
others
123,309
32,876
32,876
—
—
—
75
2,982
29,819
2,210,825
1,262,677
1,262,677
22,000
34,327
111,947
250,075
428,180
416,148
W
2,784,345
1,656,602
1,656,602
22,000
74,252
445,947
250,075
448,180
416,148
(*1)
The maintenance project mainly consists of reconstruction and condominium construction projects, and other
projects consist of constructions of office buildings, retail shops, warehouses, and educational facilities.
(*2)
The obligation to supplement funding has been included in the Group’s proportionate interests. The
execution amount of the supplement funding obligation may vary depending on the fulfillment of such obligations by other construction investors or operational investors. (Including other interests: guarantee limit of
W
1,122,320 million, outstanding loan balance of
W
302,816 million)
53
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
b.
Details of conditional debt acceptance and principal and interest repayment commitments in the event of
non-compliance
with completion guarantee covenant as of June 30, 2026 are as follows:
(in millions of Won)
Number of
constructions
Contract
amount
Contingency
amount(*1)(*2)
Balance of
loans
Maintenance projects
All
23
W
11,124,790
4,847,129
1,987,319
Between the Group
23
9,013,821
3,954,871
1,458,826
Other projects
All
1
2,197,729
5,350,000
1,548,900
Between the Group
1
2,197,729
5,350,000
1,548,900
All
24
13,322,519
10,197,129
3,536,219
Between the Group
24
W
11,211,550
9,304,871
3,007,726
(*1)
The overlapping amount with other credit enhancement measures such as the agreed debt
assumption upon loan origination amounts to
W
104,886 million for the maintenance projects.
(*2)
In the case of joint subcontracting projects, the total joint guarantee amount of the project
participants has been disclosed. However, the final execution amount of completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the completion guarantee.
c.
Details of contingent liability for damages in the event of
non-compliance
with construction completion covenant as of June 30, 2026 are as follows:
(in millions of Won)
Number of
constructions
Contract
amount
Contingency
amount(*1)(*2)
Balance of
loans
Other projects
All
35
W
11,713,112
13,078,000
8,630,809
Between the Group
35
11,084,715
12,688,654
8,302,489
(*1)
The overlapping amount with other credit enhancement measures such as the agreed debt
assumption upon loan origination amounts to
W
505,000 million for maintenance projects.
(*2)
In the case of joint subcontracting projects, the total joint guarantee amount of the project
participants has been disclosed. However, the final execution amount of completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the completion guarantee.
②
SOC projects
(in millions of Won)
Provider
Recipient
Credit enhancement
measures
Number of
constructions
Approved
amount
Remaining balance
after repayment
[Associates and joint ventures]
POSCO DX
Pocheon-Hwado Highway Corp.(*1)
Providing funds
1
24,923
22,157
POSCO Eco & Challenge Co., Ltd.
Pocheon-Hwado Highway Corp.(*1)
Providing funds
1
319,515
284,054
POHANG E&E Co., LTD(*2)
Providing funds and supplemental funding agreement
2
71,930
36,347
Pureun Tongyeong Enviro Co., Ltd.(*2)
Providing funds
1
25,630
9,219
Pure Gimpo.Co.,Ltd(*2)
Providing funds
1
51,565
20,117
Clean Iksan Co.,Ltd(*2)
Providing funds
1
44,054
19,098
7
537,617
390,992
[Others]
POSCO DX
Western Inland highway CO.,LTD.
Providing funds
1
47,348
32,668
BUSAN SANSEONG TUNNEL Co.,Ltd.
Refinancing
1
7,621
7,621
POSCO Eco & Challenge Co., Ltd.(*3)
Western Seoul highway CO.,LTD. and others
Supplemental funding agreement
9
40,726
20,795
Western Inland highway CO.,LTD. and others
Providing funds
38
2,377,253
1,312,085
Pohang Youngil Bay New Port
Debt assumption
1
2,250
1,440
Busan Sanseong Tunnel
Refinancing
1
35,296
26,750
51
2,510,494
1,401,359
58
W
3,048,111
1,792,351
(*1)
The Group provides a funding commitment of
W
306,211 million (including other shares:
W
554,888 million) equivalent to the Group’s share of the loan balance for the private investment project.
(*2)
The Group provides a funding commitment of
W
84,781 million (including
other shares:
W
154,223 million) equivalent to the Group’s share of the loan balance for the private investment project.
(*3)
The Group provides a funding commitment of
W
1,361,070 million (including
other shares:
W
5,069,250 million) equivalent to the Group’s share of the loan balance for the private investment project.
54
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
3)
Other guarantees
①
As of June 30, 2026, the payment guarantees that the Group provides to clients, such as contract
performance guarantees, installment guarantees, and defect guarantees, by subscribing to insurance policies with guarantee insurance companies or issuing guarantee certificates are as follows:
(in millions of Won)
Provider of credit enhancement
Recipient of credit enhancement
Types of guarantees
Agreed amount
Executed amount
Guarantor
[Subsidiaries]
POSCO GYR Tech
POSCO
Defect liability warranty
101
101
CI Guarantee
POSCO Eco & Challenge Co., Ltd.
PT.Tanggamus Electric Power
Letter of credit
3,091
3,091
Hana Bank
PT. Wampu Electric Power
Letter of credit
2,775
2,775
Hana Bank
5,866
5,866
[Others]
POSCO Eco & Challenge Co., Ltd.
DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd
Guarantee on performance for construction
10,741,422
10,329,233
Construction Guarantee Cooperative
POSCO GYR Tech
KEPCO Plant Service & Engineering Co., Ltd.
Defect liability warranty
2,032
2,032
CI Guarantee
10,743,454
10,331,265
W
10,749,421
10,337,232
②
As of June 30, 2026, the primary payment guarantees and other guarantees that the Group is provided from
the guarantee institution are as follows:
(in millions of Won)
Provider
Types of guarantees
Agreed
amount
Executed
amount
Construction Guarantee Cooperative
Subcontractor Payment Guarantee and others
W
5,388,633
5,388,633
Engineering Guarantee Insurance
Guarantee on performance for EPC contracts and others
1,020,699
579,701
Seoul Guarantee Insurance
Construction performance guarantee and others
483,637
483,637
Korea Housing & Urban Guarantee Corporation
Housing Guarantee and others
6,195,951
5,522,772
Woori Bank and others
Foreign currency guarantee
1,989,612
850,606
Korea software financial cooperative
Guarantee on performance for contracts
120,173
60,316
Seoul Guarantee Insurance
Guarantee on performance and others
87,688
87,688
Construction Guarantee Cooperative
Guarantee on performance
24,482
195
CI Guarantee
Defect liability warranty
252,133
252,133
W
15,563,008
13,225,681
55
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
(c)
Other commitments
Details of other commitments of the Group as of June 30, 2026 are as follows:
Company
Description
POSCO HOLDINGS INC.
As of June 30, 2026, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign
currency borrowings, which are limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowings depends on the success of the projects.POSCO
HOLDINGS INC. is not liable for the repayment of full or part of the amount borrowed if the respective projects fail. POSCO HOLDINGS INC. has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing
agreements.As of June 30, 2026, the ending balance of the borrowing amounts to USD 1.02 million.
POSCO HOLDINGS INC. has deposited 87,977 treasury shares for exchange with the Korea Securities Depository in relation to
foreign currency exchangeable bonds as of June 30, 2026.
POSCO
POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract
period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts provide for periodic price adjustments based on the market price. As of June 30, 2026, 45 million tons of iron ore and
17 million tons of coal remained to be purchased under such long- term contracts.
POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase
550 thousand tons of LNG. The purchase contract period and volume are 550,000 tons per year for 20 years from August 2005, and 120,000 tons from September 2025 to December 2026. The purchase price is subject to change, based on changes of the
monthly standard oil price (JCC) and with a price ceiling.
POSCO has a long-term service contract for the transportation of raw material. As of June 30, 2026, there are 31
vessels under contract, and the average remaining contract period is about 6 years.
POSCO entered into an agreement (LNG SPA) with POSCO INTERNATIONAL SINGAPORE PTE LTD. to purchase 370 thousand tons
of LNG annually for 15 years commencing in November 2026.The purchase price is subject to change based on changes of U.S. Henry Hub Natural Gas Spot Price. POSCO has extension option of extending the purchase contract by five years.
Regarding the shares of FEWM CO., LTD., the Company holds a call option, exercisable during the period from July 1,
2026 to June 30, 2027, to purchase a portion of the largest shareholder’s stake at a
pre-negotiated
exercise price, to the extent that the Company’s shareholding in the target company reaches
59% of the total issued shares of the target company at the time of exercise.
POSCO has entered into an LNG terminal usage agreement with POSCO International to consume directly imported LNG for
processing and power generation at the Pohang and Gwangyang steelworks after unloading, storing, vaporizing, and transmitting it through the Gwangyang LNG terminal. This agreement grants the Company the exclusive and sole right to use 200,000
㎘ of LNG storage capacity in the new LNG storage tank and to use the terminal facilities, including other ancillary equipment. The contract period is from September 1, 2025, to August 31, 2041.
To ensure stable operations in response to increased LNG demand, POSCO has entered into a long-term LNG purchase agreement
with QatarEnergy Trading LLC. The purchase period and volume are four years from January 2027 through December 2030, at an annual volume of 300,000 metric tons. The purchase price is adjusted based on fluctuations in the price of crude oil
(Brent).
The Company has participated in an investment to jointly construct an electric arc furnace-based integrated steel mill
with Hyundai Motor Group in the State of Louisiana, U.S.A., in order to strengthen its response to the North American steel market and secure a production base for
eco-friendly
automotive steel sheets. Under
this investment structure,
POS-Louisiana
Inc., a wholly-owned subsidiary established through a 100% equity investment by the Company, will acquire a 20% equity interest in HYUNDAI-POSCO Louisiana Steel LLC.
The Company has guaranteed
POS-Louisiana
Inc.’s capital contribution obligation, amounting to a final investment of USD 582 million.
56
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
34. Commitments and Contingencies (cont’d)
POSCO INTERNATIONAL Corporation
The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC)
formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation. SHERRITT INTERNATIONAL CORP., the operator, transferred a portion of the project’s interests to Sumitomo and AHL (Ambatovy Holdings Limited)
in November 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy Holdings II Limited) in August 2020. KAC has the rights and obligations to the 15.33% stake held by AHL and AHL2. Meanwhile, Sumitomo, a
co-investor
in the project, entered into an agreement in May 2026 to sell all of its interests to a consortium (AMRI) led by Essenwood Partners, a
UK-based
resource
development investment firm. The sale process is currently underway, and even upon completion of the transaction, there will be no changes to KAC’s ownership interest (15.33%) or its related rights and obligations.
As of June 30, 2026, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO
Eco & Challenge Co., Ltd. is obligated to make contributions for core capital, unqualified investment, excess expenses occurred for business, and acceleration of payment.
POSCO FUTURE M CO., LTD
In accordance with the GP Shareholders Agreement with GM Battery Raw Materials Corporation (“GM”), the Company
has an obligation to make additional capital contributions to ULTIUM CAM LIMITED PARTNERSHIP. As of June 30, 2026, the remaining amount of USD 385,764 thousand is scheduled to be contributed additionally by 2026 through capital
call.
(d) Litigation in progress
The Group is involved in 451 lawsuits amounting to
W
1,264.9 billion as a defendant as of June 30, 2026, which arise
from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to
W
36.1 billion for 37 lawsuits based on its reliable estimate of outflow of resources.
(e) Other major contingencies for the Group as of June 30, 2026 are as follows:
Company
Description
POSCO HOLDINGS INC.
POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings.
The Company has a joint obligation with the company newly established through
spin-off,
POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the
spin-off
date.
POSCO INTERNATIONAL
Corporation
As of June 30, 2026, POSCO INTERNATIONAL Corporation has provided 19 blank promissory notes and 12 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and
others.
POSCO Eco & Challenge Co., Ltd.
As of June 30, 2026, POSCO Eco & Challenge Co., Ltd. has provided 40 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.
POSCO DX
As of June 30, 2026, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.
35. Cash Flows from Operating Activities
Changes in operating assets and liabilities for each of the
six-month
periods ended June 30, 2026 and 2025 are as
follows:
(in millions of Won)
June 30, 2026
June 30, 2025
Trade accounts and notes receivable
W
(2,188,315
)
(1,000,685
)
Other receivables
(167,455
)
214,898
Inventories
(773,052
)
1,541,145
Other current assets
(309,740
)
(97,333
)
Other
non-current
assets
(17,162
)
(57,196
)
Trade accounts and notes payable
287,105
(598,158
)
Other payables
(11,247
)
(243,815
)
Other current liabilities
541,391
171,368
Provisions
(26,217
)
(62,255
)
Payments of severance benefits
(283,869
)
(210,762
)
Plan assets
267,452
210,154
Other
non-current
liabilities
(1,506
)
177
W
(2,682,615
)
(132,462
)
57
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
36. Operating Segments
(a)
The Group’s operating businesses are organized based on the nature of markets and customers. During the
six-month period ended June 30, 2026, the Group changed its internal organization and internal reporting structures. As a result, operating segments were
re-categorized
according to the revised reporting
materials provided to the management for decision-making. Meanwhile, the Group has restated the information of the reporting segments from the previous quarter in accordance with the changes in the operating segments.
Segment assets, liabilities and profit (loss) are generally measured based on separate financial statements in
accordance with KIFRS of the subsidiaries that constitute reportable operating segments.
Meanwhile the Group has classified the business segment, and the subsidiaries in each segments are as follows:
Operating segments
Main Business
Steel
Manufacture and sales of steel products
infrastructure
Trading
Supply and purchase transactions between domestic and foreign companies, power generation, and resource development
Construction
Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.
Logistics and others
Logistics, network and system integration business
Rechargeable battery Materials
EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others
POSCO HOLDINGS. INC., Controlling company and Investment business
The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is
determined in the same way as the consolidated net income determined by KIFRS. Segment assets and liabilities are determined based on separate financial statements. There are various transactions between reporting segments, including disposal of
property, plant and equipment and provision of construction services.
(b)
The classification of the information by operating segments for each of the
six-month
periods ended June 30, 2026 and 2025 is as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Steel
Infrastructure
Rechargeable
bettery materials
Others
Total
Trading
Construction
Logistics and
others
External revenues
W
18,793,106
13,949,995
3,056,473
141,785
1,179,940
13,492
37,134,791
Internal revenues
11,563,805
9,714,710
541,710
1,919,425
850,744
1,011,527
25,601,921
Inter segment revenues
6,572,440
4,078,464
516,844
1,939,769
679,385
998,162
14,785,064
Total revenues
30,356,911
23,664,705
3,598,183
2,061,210
2,030,684
1,025,019
62,736,712
Segment profits (loss)
351,821
458,986
48,459
33,361
(70,664
)
748,315
1,570,278
2)
For the
six-month
period ended June 30, 2025
(in millions of Won)
Steel
Infrastructure
Rechargeable
bettery materials
Others
Total
Construction
Trading
Logistics and
others
External revenues
W
18,695,251
12,077,007
2,955,818
136,875
1,092,230
35,182
34,992,363
Internal revenues
11,148,015
9,144,126
880,221
1,620,140
601,292
832,780
24,226,574
Inter segment revenues
7,270,608
4,188,756
839,854
1,588,554
521,484
824,197
15,233,453
Total revenues
29,843,266
21,221,133
3,836,039
1,757,015
1,693,522
867,962
59,218,937
Segment profits
578,230
201,823
(126,581
)
32,120
(297,667
)
628,759
1,016,684
58
Table of Contents
POSCO HOLDINGS INC. and its subsidiaries
Notes to the interim condensed consolidated financial statements, continued
June 30, 2026 and 2025 (Unaudited)
36. Operating Segments (cont’d)
(c)
The reconciliations of the total segment revenues, profit or loss, assets and liabilities, and other
significant items to their respective consolidated financial statement line items for each of the six-month periods ended June 20, 2026 and 2025 are as follows:
(in millions of Won)
June 30, 2026
June 30, 2025
Total profit for the period
W
1,570,278
1,016,684
Fair value adjustments
(49,259
)
(72,666
)
Elimination of intra-group transactions
(216,315
)
(515,937
)
Income tax expense
363,010
309,559
Profit before income tax expense
W
1,667,714
737,640
37. Matters Concerning Tariffs
(a)
In June 2025, the U.S. government announced an executive order imposing a 50% tariff on all steel and aluminum
products, which took effect on June 4, 2025. The imposition of this tariff creates uncertainty in the estimates of the financial statements.
(b)
In July 2026, the EU implemented new restrictions on steel imports, resulting in a reduction in steel import
quotas and an increase in the tariff rate on quantities exceeding the quotas to 50%. The implementation of these measures introduces uncertainty in the estimation of financial statements.
38. Uncertainty Regarding the Impact of the Coup in Myanmar
There is uncertainty arising from the political instability in Myanmar and economic sanctions imposed by the international community, including the European
Union and the U.S. government. The Myanmar gas field project in which the Group currently participates is operating normally, and the Group continues to monitor developments in international sanctions. As of the end of the reporting period, the
impact of this matter on the financial statements cannot be reasonably estimated.
39. Events after the reporting period
(a)
Pursuant to the resolution of the Board of Directors on May 12, 2026, the Company decided to provide a payment
guarantee for borrowings of USD 700 million of POSCO Argentina S.A.U. The related loan agreement was entered into on August 6, 2026, and the guarantee period is three years from August 6, 2026.
(b)
POSCO E&C Co., Ltd., a subsidiary of the Company, decided to issue
W
400 billion in
bond-type hybrid securities for the purpose of strengthening its financial soundness, among others, through a resolution of its Board of Directors on July 13, 2026, and issued the securities on July 20, 2026, The hybrid securities may be redeemed
after a certain period has elapsed from the issuance date, and the bondholders cannot demand early redemption. In addition, the maturity may be continuously extended under the same terms and conditions on the maturity date, and the payment of
interest may be suspended. Accordingly, the securities are expected to be classified as equity.
(c)
POSCO International Co., Ltd., a subsidiary of the Company, decided to provide a payment guarantee of
approximately
W
184.5 billion for the borrowings of its subsidiary, Centrux LNG Pte. Ltd., pursuant to the resolution of its Board of Directors on July 31, 2026.
59
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate financial statements
for each of the six-month periods ended June 30, 2026 and 2025
with the independent auditor’s review report
Table of Contents
Table of Contents
Report on review of interim condensed separate financial statements
Page
Interim condensed separate financial statements
Interim condensed separate statements of financial position
1
Interim condensed separate statements of comprehensive income or
loss
3
Interim condensed separate statements of changes in equity
4
Interim condensed separate statements of cash flows
5
Notes to the interim condensed separate financial statements
7
Table of Contents
Ernst & Young Han Young
2-3F, 7-8F, Taeyoung Building, 111,
Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea
Tel: +82 2 3787 6600
Fax: +82 2 783 5890
ey.com/kr
Report on review of interim condensed separate financial statements
(English translation of a report originally issued in Korean)
The Stockholders and Board of Directors
POSCO
HOLDINGS INC.
We have reviewed the accompanying interim condensed separate financial statements of POSCO HOLDINGS INC. (the “Company”),
which comprise the interim condensed separate statement of financial position as of June 30, 2026 and the related interim condensed separate statements of comprehensive income or loss for each of the three-month and
six-month
periods ended June 30, 2026 and 2025, interim condensed separate statements of changes in equity and interim condensed separate statements of cash flows for each of the six-month periods ended
June 30, 2026 and 2025, and a summary of material accounting policy information and other explanatory information.
Management’s
responsibility for the interim condensed separate financial statements
Management is responsible for the preparation and presentation of these interim
condensed separate financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034
Interim Financial Reporting
, and for such internal control as management
determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to
express a conclusion on these interim condensed separate financial statements based on our review.
We conducted our review in accordance with the Review
Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSA”) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the accompanying interim condensed separate financial statements are not prepared, in all material respects, in accordance with KIFRS 1034
Interim Financial Reporting
.
Table of Contents
Other matters
We have
audited the separate statement of financial position of the Company as of December 31, 2025, and the related separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year
then ended (not presented herein) in accordance with KSA, and our report dated March 11, 2026 expressed an unqualified opinion thereon. The accompanying separate statement of financial position of the Company as of December 31, 2025, presented
for comparative purposes, is not different from the above audited separate statement of financial position.
August 14, 2026
This review report is effective as of August 14, 2026, the independent auditor’s review report date. Accordingly,
certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect
the accompanying interim condensed separate financial statements and may result in modification to this review report.
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate financial statements
for each of the six-month periods ended June 30, 2026 and 2025
“The accompanying interim condensed separate financial statements, including all footnotes and disclosures, have been prepared by, and
are the responsibility of, the Company.”
Ju Tae Lee
Representative Director & President
POSCO HOLDINGS INC.
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate statements of financial position
as of June 30, 2026 (Unaudited) and December 31, 2025
(in millions of Won)
Notes
June 30, 2026
(Unaudited)
December 31, 2025
Assets
Cash and cash equivalents
19,32
W
240,948
184,416
Trade accounts and notes receivable, net
4,19,30,32
123,112
157,668
Other receivables, net
5,19,30,32
177,802
146,146
Other short-term financial assets
6,19,32
4,134,180
3,454,794
Assets held for sale
7
—
—
Other current assets
12
2,415
2,099
Total current assets
4,678,457
3,945,123
Other receivables, net
5,19,30
29,718
17,414
Other long-term financial assets
6,19
599,131
506,736
Investments in subsidiaries, associates and joint ventures
8
46,042,081
46,290,252
Investment property, net
9
308,070
319,392
Property, plant and equipment, net
10
728,784
703,140
Intangible assets, net
11
30,079
29,659
Other
non-current
assets
12
6,454
3,869
Total
non-current
assets
47,744,317
47,870,462
Total assets
W
52,422,774
51,815,585
(continued)
1
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate statements of financial position, continued
as of June 30, 2026 (Unaudited) and December 31, 2025
(in millions of Won)
Notes
June 30, 2026
(Unaudited)
December 31,
2025
Liabilities
Short-term borrowings and current portion of long-term borrowings
13,19
W
49,042
45,973
Other current payables
14,30
80,299
53,466
Other short-term financial liabilities
15,19
29,840
21,545
Provisions
16
51,752
46,421
Current income tax liabilities
28
110,224
72,404
Other current liabilities
18
6,508
5,819
Total current liabilities
327,665
245,628
Long-term borrowings, excluding current portion
13
1,068,536
993,857
Other
non-current
payables
14,19,30
36,050
35,037
Defined benefit liabilities, net
17
7,525
5,533
Deferred tax liabilities
28
2,619,709
2,592,964
Long-term provisions
16
2,058
2,947
Other
non-current
liabilities
18
882
1,350
Total
non-current
liabilities
3,734,760
3,631,688
Total liabilities
4,062,425
3,877,316
Equity
Share capital
20
482,403
482,403
Capital surplus
20
1,367,990
1,367,990
Accumulated other comprehensive income (loss)
21
(59,720
)
(45,874
)
Treasury shares
22
(801,771
)
(1,176,316
)
Retained earnings
47,371,447
47,310,066
Total equity
48,360,349
47,938,269
Total liabilities and equity
W
52,422,774
51,815,585
The accompanying notes are an integral part of the interim condensed separate financial statements.
2
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate statements of comprehensive income or loss
for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 (Unaudited)
For the three-month period
ended June 30
(Unaudited)
For the six-month period
ended June 30
(Unaudited)
(in millions of Won, except per share informations)
Notes
2026
2025
2026
2025
Operating revenue
23,30
W
114,519
154,768
964,879
819,465
Operating expenses
24
(118,248
)
(112,328
)
(213,840
)
(202,644
)
Operating profit
(3,729
)
42,440
751,039
616,821
Finance income and costs
Finance income
19,25
60,315
95,863
174,328
127,579
Finance costs
19,25
(44,405
)
(80,449
)
(120,553
)
(84,734
)
Other
non-operating
income and expenses
Other
non-operating
income
26
32,943
1,031
34,025
1,947
Other
non-operating
expenses
26
(10,933
)
(12,871
)
(34,016
)
(14,395
)
Profit before income tax
34,191
46,014
804,823
647,218
Income tax benefit (expense)
28
(20,949
)
132
(28,503
)
(12,315
)
Profit
13,242
46,146
776,320
634,903
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans
17
(23
)
(88
)
(100
)
(78
)
Net changes in fair value of equity investments at fair value through other comprehensive
income
6,21
(13,739
)
(97,200
)
(13,846
)
(49,723
)
Total comprehensive income (loss)
W
(520
)
(51,142
)
762,374
585,102
Earnings per share (in Won)
29
Basic earnings per share (in Won)
175
610
10,266
8,396
Diluted earnings per share (in Won)
W
175
610
10,266
8,396
The accompanying notes are an integral part of the interim condensed separate financial statements.
3
Table of Contents
POSCO HOLDINGS INC.
Interim condensed separate statements of changes in equity
for each of the six-month periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
Share
capital
Capital
surplus
Accumulated
Other
Comprehensive
Income (loss)
Treasury
shares
Retained
earnings
Total
Balance as of January 1, 2025
W
482,403
1,367,990
(62,645
)
(1,550,862
)
47,952,144
48,189,030
Comprehensive income:
Profit for the period
—
—
—
—
634,903
634,903
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax
—
—
—
—
(78
)
(78
)
Net changes in fair value of equity investments at fair value through other comprehensive income,
net of tax
—
—
(49,723
)
—
—
(49,723
)
Transactions with owners of the Company, recognized directly in equity:
Year-end
dividends
—
—
—
—
(189,052
)
(189,052
)
Interim dividends
—
—
—
—
(189,052
)
(189,052
)
Retirement of treasury shares
—
—
—
374,545
(374,545
)
—
Balance as of June 30, 2025 (Unaudited)
W
482,403
1,367,990
(112,368
)
(1,176,317
)
47,834,320
48,396,028
Balance as of January 1, 2026
W
482,403
1,367,990
(45,874
)
(1,176,317
)
47,310,066
47,938,268
Comprehensive income:
Profit for the period
—
—
—
—
776,320
776,320
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax
—
—
—
—
(100
)
(100
)
Net changes in fair value of equity investments at fair value through other comprehensive income,
net of tax
—
—
(13,846
)
—
—
(13,846
)
Transactions with owners of the Company, recognized directly in equity:
Year-end
dividends
—
—
—
—
(189,052
)
(189,052
)
Interim dividends
—
—
—
—
(151,241
)
(151,241
)
Retirement of treasury shares
—
—
—
374,546
(374,546
)
—
Balance as of June 30, 2026 (Unaudited)
W
482,403
1,367,990
(59,720
)
(801,771
)
47,371,447
48,360,349
The accompanying notes are an integral part of the interim condensed separate financial statements.
4
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POSCO HOLDINGS INC.
Interim condensed separate statements of cash flows
for each of the six-month periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
June 30, 2026
(Unaudited)
June 30, 2025
(Unaudited)
Cash flows from operating activities
Profit for the period
W
776,320
634,903
Adjustments for :
Expenses related to post-employment benefit
4,340
5,126
Depreciation
11,205
8,240
Amortization
1,368
1,061
Impairment loss (reversal) on other receivables
—
(33
)
Finance income
(162,687
)
(112,381
)
Dividend income
(881,978
)
(728,223
)
Finance costs
113,188
58,189
Loss on disposal of property, plant and equipment
1,622
735
Gain on Disposal of Investment Property
(483
)
Gain on disposal of intangible assets
—
—
Loss on disposal of intangible assets
—
17
Gain on Disposal of Investments in Subsidiaries, associates and joint ventures
(30,673
)
Impairment loss on investments in subsidiaries, associates and joint ventures
25,822
6,651
Increase to provisions
(988
)
756
Income tax expense
28,503
12,315
Changes in operating assets and liabilities
86,589
108,327
Interest received
57,366
25,650
Interest Paid
(27,756
)
Dividends received
857,467
685,179
Income taxes refund (paid)
2,556
(13,412
)
Net cash provided by operating activities
W
861,781
693,100
(continued)
5
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POSCO HOLDINGS INC.
Interim condensed separate statements of cash flows, continued
for each of the six-month periods ended June 30, 2026 and 2025 (Unaudited)
(in millions of Won)
June 30, 2026
(Unaudited)
June 30, 2025
(Unaudited)
Cash flows from investing activities
Decrease in deposit instruments
W
2,360,000
1,480,000
Proceeds from disposal of short-term financial instruments
164,336
858,306
Proceeds from disposal of current debt securities
50,000
—
Proceeds from disposal of other securities
3,401
2,722
Proceeds from disposal of investments in subsidiaries, associates and joint ventures
361,851
11,382
Proceeds from Disposal of Investment Property
5,681
—
Increase in deposits
(3,010,000
)
(2,520,000
)
Acquisition of short-term financial instruments
(181,967
)
(534,226
)
Acquisition of short-term debt securities
(60,000
)
(50,000
)
Acquisition of long-term debt securities
(15,487
)
—
Acquisition of other securities
(2,160
)
(7,519
)
Acquisition of investments in subsidiaries, associates and joint ventures
(108,827
)
(301,743
)
Acquisition of investment properties
—
—
Acquisition of property, plant and equipment
(30,012
)
(126,963
)
Acquisition of intangible assets
(1,788
)
(2,772
)
Increase in long-term lease security deposits
(28
)
(475
)
Net cash provided by investing activities
W
(465,000
)
(1,191,288
)
Cash flows from financing activities
Increase in long-term financial liabilities
447
3,278
Proceeds from bonds
—
987,117
Payment of cash dividends
(340,708
)
(378,397
)
Net cash provided by financing activities
W
(340,261
)
611,998
Effect of exchange rate fluctuation on cash held
12
(11
)
Net increase in cash and cash equivalents
56,532
113,799
Cash and cash equivalents at beginning of the period
184,416
409,388
Cash and cash equivalents at end of the period
W
240,948
523,187
The accompanying notes are an integral part of the interim condensed separate financial statements.
6
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements
June 30, 2026 and 2025 (Unaudited)
1.Reporting Entity
POSCO HOLDINGS INC. (the
“Company”) was established on April 1, 1968, under the Commercial Act of the Republic of Korea. The shares of the Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business
that controls and manages through ownership of shares of subsidiaries etc.
On March 2, 2022, the Company established a new subsidiary, POSCO, by a
vertical
spin-off
of its steel business (which is wholly owned by the surviving company) on March 1, 2022, and changed the name of the surviving company to POSCO HOLDINGS INC.
As of June 30, 2026, the shares of the Company are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.
2. Basis of preparation
Statement of compliance
The interim condensed separate financial statements have been prepared in accordance with KIFRS 1034
Interim Financial Reporting
, as prescribed
in
the Act on External Audit of Stock Companies
of the Republic of Korea. The accompanying interim condensed separate financial statements have been translated into English from the Korean language financial statements. In the event of any
differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.
The interim condensed separate financial statements do not include all the information and disclosures required in the annual financial statements and should
be read in conjunction with the Company’s annual financial statements as of December 31, 2025. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial
position and performance of the Company incurred after December 31, 2025. These interim condensed separate interim financial statements do not include all of the disclosures required for full annual financial statements.
These condensed interim financial statements are separate interim financial statements prepared in accordance with KIFRS 1027
Separate Financial
Statements
presented by a parent, an investor with joint control of, or significant influence over an investee, in which the investments are accounted for at cost.
7
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
2. Basis of preparation (cont’d)
Use of
estimates and judgments
(a)
Judgments, assumptions and estimation uncertainties
The preparation of the interim condensed separate financial statements in conformity with KIFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period
prospectively.
The significant judgments made by management in applying the Company’s accounting policies and the key sources of
estimation uncertainty were the same as those described in the annual financial statements as of and for the year ended December 31, 2025 except for the matters mentioned below.
(b)
Measurement of fair value
The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial
assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing
all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.
The valuation
team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the
third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
Significant valuation issues are reported to the Company’s Audit Committee.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
8
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
2. Basis of preparation (cont’d)
•
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the
assets or liabilities, either directly or indirectly.
•
Level 3 – inputs for the assets or liabilities that are not based on observable market data.
If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the
fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between
levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
3. Summary of Material Accounting Policy
Information
Except for the items described in KIFRS 1034
Interim Financial Reporting
and below, the accounting policies applied by the Company
in these interim condensed separate financial statements are the same as those applied to the separate financial statements as of and for the year ended December 31, 2025.
Changes in Accounting Policies
(a)
Amendments to KIFRS 1109
Financial Instruments
and 1107:
Financial Instruments: Disclosures –
Classification and Measurement of Financial Instruments
These amendments include the following:
•
Clarification that a financial liability is derecognized on the settlemente date and the introduction of an
accounting policy choice to derecognize financial liabilities that are settled by using electronic payment system before the settlement date (if specific criteria are met);
•
Additional guidance as to how to assess contractual cash flows of financial assets with environmental, social and
corporate governance (ESG) and similar features;
•
Clarification on what constitutes
non-recourse
feature and the
characteristics of contractually linked financial instruments; and
•
Introduction of disclosures on financial instruments with contingent features and additional disclosure
requirements for equity instruments measured at fair value through other comprehensive income.
The amendments are not expected to have a
material impact on the Company’s separate financial statements.
9
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
3. Material Accounting Policy Information (cont’d)
b)
Annual Improvements to KIFRS – Volume 11
Annual Improvements to KIFRS - Volume 11 have been announced for the purpose of improving consistency of requirements set out in each standard, enhancing
clarity, and providing better understanding of the amendments.
•
Amendments to KIFRS 1101
First-time adoption of KIFRS: Hedge accounting by a first-time adopter
•
Amendments to KIFRS 1107
Financial Instruments: Disclosures: Gain or loss on derecognition, Guidance for
application of amendments in practice
•
Amendments to KIFRS 1109
Financial Instruments: Accounting for derecognition of lease liabilities and
definition of transaction prices
•
Amendments to KIFRS 1110
Consolidated Financial Statements: Determination of a ‘de facto
agent’
•
Amendments to KIFRS 1007
Statement of Cash Flows:
Cost Method
The amendments are not expected to have a material impact on the Company’s separate financial statements.
(c)
Amendments to KIFRS 1109
Financial Instruments
and KIFRS 1107
Financial Instruments: Disclosures -
Contracts Referencing Nature-dependent Electricity
The key amendments are as follows:
•
Clarification on the application of the
‘own-use’
requirements for contracts within the scope;
•
Amendment to the designation criteria for designating cash flow hedge items in cash flow hedge relationships for
contracts within the scope; and
•
Introduction of new disclosure requirements to enable users of financial statements to understand the effects of
these contracts on the entity’s financial performance and cash flows.
The amendments are not expected to have a material impact
on the Company’s separate financial statements.
10
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
New and amended standards not yet adopted by the Group
The
following new and amended accounting standards and interpretations had been issued but were not mandatory for annual reporting periods ending on December 31, 2026.
(a)
Korean IFRS 1118 Presentation and Disclosure in Financial Statements
Key changes in the accounting policies
KIFRS 1118 has been issued, which replaces KIFRS 1001
Presentation of Financial Statements
. KIFRS 1118 is expected to enhance the
comparability of financial performance among similar firms by providing information users with useful information for analyzing and comparing firm performance, with a focus on the statement of profit or loss.
KIFRS 1118 is effective for annual reporting periods beginning on or after January 1, 2027, but earlier application is permitted. As the
Company must apply this standard retrospectively in accordance with KIFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors
, comparative information for the fiscal year ending December 31, 2027 is restated in accordance
with KIFRS 1118.
The major accounting policies expected to result in significant differences from the current financial statements when
the Company prepares the financial statements in accordance with KIFRS 1118 are as follows. These do not include all the differences that may incur in the future and are subject to change based on further analysis.
1) Changes such as presentation in the statement of profit or loss
KIFRS 1118 introduces new requirements for presentation within the statement of profit or loss to classify all income and expenses into one of
five categories: operating, investing, financing, income taxes and discontinued operations. An entity is required to classify all income and expenses shown in the statement of profit or loss to the operating category if they do not fall under the
investing, financing, income taxes, or discontinued operations categories. According to KIFRS
1118, the operating category is a residual category, meaning it will encompass any income and expenses not assigned to the other specified
categories.
The Company shall evaluate its main business activities to classify income and expenses; if the Company’s core business
is to provide financing to customers or invest in assets with particular features, some income and expenses that might ordinarily have been classified in the investing or financing category, when applying the general principles, will be presented in
the operating category.
The operating profit or loss of KIFRS 1118 differs significantly from the operating profit or loss under KIFRS
1001, which is defined as income less cost of goods sold and selling and administrative expenses under KIFRS 1001. KIFRS 1118 requires the disclosure of operating profit or loss calculated in accordance with KIFRS 1001 in the notes, and the details
of the adjustments for the difference between operating profit or loss under KIFRS 1118 and operating profit or loss under KIFRS 1001 shall also be disclosed in the notes.
11
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
In addition, KIFRS 1118 requires the presentation of “operating profit or loss,” consisting of all income and expenses classified
under operating category, operating profit or loss and “operating profit or loss before financing and income taxes,” consisting of all income and expenses classified under investing category, and “net profit or loss.”
However, there is an exception from presenting the subtotal “profit or loss before financing and income taxes” if the Company has a main business activity of providing financing to customers, depending on the accounting policies applied.
2) Disclosure of management-defined performance measures (MPMs)
KIFRS 1118 introduces the concept of MPMs which are defined as a subtotal of income and expenses that an entity uses in public communications
outside financial statements, to communicate management’s view of an aspect of the financial performance of the entity as a whole to the users. KIFRS 1118 defines MPMs as subtotals of income and expenses that are not specified in paragraph 118
of KIFRS 1118 or for which presentation and disclosure of subtotals of income and expenses are not specifically required.
If a performance
measure qualifies as an MPM, KIFRS 1118 specifies the disclosure requirements. These disclosures should be included in a single note in the financial statements, and include:
•
a description of the aspect of financial performance which is communicated by the MPM, as well as explanation of
why the MPM provides useful financial information;
•
how the MPM is calculated; and
•
a reconciliation between the MPM and the most directly comparable subtotal required by KIFRS, including the
income tax effects and the effect on non-controlling interests for each reconciling item.
3) Changes such as
classification of cash flows, etc.
In addition, narrow-scope amendments have been made to KIFRS 1007
Statement of Cash Flows
, which
include changing the starting point for determining cash flows from operations under the indirect method, from “profit or loss” to “operating profit or loss” and removing the optionality around classification of cash flows
from dividends and interest.
Assessment of major impact
The Company has not applied KIFRS 1118 as it is not mandatorily applicable yet, and the Company plans to report the first interim financial
statements for the reporting period ending December 31, 2027, in accordance with KIFRS 1118.
12
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
4. Trade Accounts and Notes Receivable
Trade accounts and
notes receivable as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Trade accounts and notes receivable
W
65,665
41,384
Unbilled receivables (contract assets)
57,447
116,284
Less: Allowance for doubtful accounts
—
—
W
123,112
157,668
5. Other Receivables
Other receivables as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Other accounts receivable(*1)
W
136,319
103,109
Others(*2)
46,148
47,379
Less: Allowance for doubtful accounts(*2)
(4,665
)
(4,342
)
W
177,802
146,146
Non-current
Loans(*2)
W
259,491
241,717
Long-term other accounts receivable
28,640
16,365
Others
1,078
1,049
Less: Allowance for doubtful accounts(*2)
(259,491
)
(241,717
)
W
29,718
17,414
(*1)
The Company includes the amounts to be collected from each domestic subsidiary in accordance with the
consolidated tax payment system.
(*2)
The Company assessed the recoverability of other receivables to FQM Australia Pty Ltd, an associate, and
recognized an allowance for doubtful accounts for such other receivables from the entity.
13
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POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
6. Other Financial Assets
(a)
Other financial assets as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Deposit instruments
W
3,770,000
3,120,000
Short-term financial instruments
124,180
104,794
Debt securities
240,000
230,000
W
4,134,180
3,454,794
Non-current
Equity securities
W
151,916
170,819
Other securities
263,894
258,164
Derivative Assets
170,171
77,751
Deposit instruments
2
2
Debt Securities
13,148
—
W
599,131
506,736
(b)
Equity securities as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Number of
shares
Ownership
(%)
Acquisition
cost
Fair
value
Net changes in
fair value of
equity securities
Book
value
Book
value
Marketable equity securities
CSN Mineracao S.A.
102,186,675
1.88
206,265
127,275
(78,990
)
127,275
145,885
206,265
127,275
(78,990
)
127,275
145,885
Non-marketable
equity securities
PLANTEC Co., Ltd.
18,337,912
10.99
19,437
23,271
3,834
23,271
23,564
Intellectual Discovery Co.,Ltd.
200,000
5.62
5,000
1,350
(3,650
)
1,350
1,350
S&M Media Co.,Ltd.
2,000
2.67
20
20
—
20
20
XG Sciences
300,000
5.06
2,724
—
(2,724
)
—
—
27,181
24,641
(2,540
)
24,641
24,934
W
233,446
151,916
(81,530
)
151,916
170,819
7. Assets Held for Sale
Details of assets Held for Sale as of june 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Beginning
W
—
467,796
Valuations
—
918
Disposals
—
(468,714
)
Ending
W
—
—
For the year ended December 31, 2025, the Company disposed its long-term investments in Nippon Steel Corporation and
recognized losses on disposal of assets held for sale of
W
9,883 million.
14
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
8. Investments in Subsidiaries, Associates and Joint ventures
(a)
Investments in subsidiaries, associates and joint ventures of as of June 30, 2026 and December 31,
2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Investment in subsidiaries
W
43,233,553
43,478,792
Investment in associates
209,923
212,855
Investment in joint ventures
2,598,605
2,598,605
W
46,042,081
46,290,252
There are no significant restrictions on the ability of subsidiaries, associates and joint ventures to transfer
funds to the controlling company, such as in the forms of cash dividends and repayment of loans or payment of advances.
(b)
Details of subsidiaries and carrying amounts as of June 30, 2026 and December 31, 2025 are as
follows:
(in millions of Won)
June 30, 2026
December 31,
2025
Country
Principal operations
Ownership (%)
Book value
Book value
[Domestic]
POSCO
Korea
Steel, rolled products, and plates manufacturing and sales
100.00
W
29,918,622
29,918,622
POSCO INTERNATIONAL Corporation
Korea
Trading, power generation and natural resources exploration
70.71
3,740,020
3,740,020
POSCO Eco & Challenge Co., Ltd.
Korea
Engineering and construction
52.80
1,014,963
1,014,963
POSCO Venture Capital Co., Ltd.
Korea
Investment in venture companies
100.00
115,931
115,931
POSCO FUTURE M CO.,LTD.
Korea
Refractory and anode/cathode material manufacturing and sales
58.18
1,924,555
1,924,555
POSCO WIDE Co., Ltd.
Korea
Business facility maintenance
100.00
308,843
308,843
POSCO DX
Korea
Computer hardware and software distribution
65.47
70,990
70,990
Busan E&E Co., Ltd.
Korea
Municipal solid waste fuel and power generation
70.00
30,148
30,148
POSCO-Pilbara LITHIUM SOLUTION Co., Ltd.
Korea
Lithium manufacturing and sales
82.00
642,940
642,940
POSCO LITHIUM SOLUTION
Korea
Lithium hydroxide manufacturing and sales
100.00
287,550
287,550
QSONE Co.,Ltd.
Korea
Real estate rental and facility management
100.00
238,478
238,478
POSCO ZT AIR SOLUTION
Korea
Manufacturing and Sales of High-Purity Rare Gases
75.10
63,481
63,481
Others
489,964
511,889
38,846,485
38,868,410
[Foreign]
POSCO WA PTY LTD
Australia
Iron ore sales and mine development
100.00
646,574
646,574
POSCO Canada Ltd.
Canada
Coal sales
100.00
560,879
560,879
POSCO AUSTRALIA PTY LTD
Australia
Iron ore sales and mine development
100.00
330,623
330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.(*1)
China
Stainless steel manufacturing and sales
—
—
259,819
POSCO-China Holding Corp.
China
Holding company
100.00
593,816
593,816
POSCO America Corporation
USA
Researching and consulting
99.45
192,136
192,136
POSCO VST CO., LTD.
Vietnam
Stainless steel manufacturing and sales
95.65
66,060
66,060
POSCO Asia Co., Ltd.
Hong Kong
Activities Auxiliary to financial service
100.00
117,690
117,690
POSCO JAPAN Co., Ltd.
Japan
Steel marketing, demand development, and technology research
100.00
68,410
68,410
Qingdao Pohang Stainless Steel Co., Ltd.(*1)
China
Stainless steel manufacturing and sales
—
—
65,982
POSCO (Suzhou) Automotive
Processing Center Co., Ltd.
China
Steel manufacturing and sales
90.00
62,469
62,469
POSCO AFRICA (PROPRIETARY) LIMITED
South Africa
Mine development
100.00
50,297
50,297
POSCO Argentina S.A.U.
Argentina
Mineral exploration, manufacturing and sales
100.00
1,454,453
1,352,943
Others
243,661
242,684
4,387,068
4,610,382
W
43,233,553
43,478,792
15
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
8. Investments in Subsidiaries, Associates and Joint ventures (cont’d)
(c)
Details of associates and carrying amounts as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Country
Principal operations
Ownership (%)
Book value
Book value
[Domestic]
POSCO JK SOLID SOLUTION CO., LTD.
Korea
Material manufacturing for rechargeable battery
40.00
W
26,025
26,025
Others
13,904
16,837
39,929
42,862
[Foreign]
9404-5515 Quebec Inc.(*1)
Canada
Investments
12.61
156,194
156,194
Others
13,799
13,799
169,993
169,993
W
209,922
212,855
(*1)
As of June 30, 2026, the entity is classified as an investment in an associate since the Company has
significant influence over the investee although the Company’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.
(d)
Details of joint ventures and carrying amounts as of June 30, 2026 and December 31, 2025 are as
follows:
(in millions of Won)
June 30, 2025
December 31, 2024
Country
Principal operations
Ownership (%)
Book value
Book value
Roy Hill Holdings Pty Ltd(*1)
Australia
Natural resources exploration
10.00
W
1,225,464
1,225,464
POSCO-NPS
Niobium LLC
USA
Foreign investments in mining
50.00
364,609
364,609
KOBRASCO
Brazil
Steel materials manufacturing
and sales
50.00
98,962
98,962
HBIS-POSCO Automotive Steel Co., Ltd
China
Steel manufacturing and sales
50.00
235,207
235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.
China
Steel manufacturing and sales
25.00
63,866
63,866
PT NICOLE METAL INDUSTRY
Indonesia
Nickel Smelting
49.00
604,045
604,045
Hydrogen Duqm LLC
Oman
Green Hydrogen/Ammonia
product business development
44.80
6,452
6,452
Nickel Mining Company SAS(*2)
New
Caledonia
Raw material manufacturing
and sales
49.00
—
—
SNNC(*2)
Korea
STS material manufacturing
and sales
49.00
—
—
W
2,598,605
2,598,605
(*1)
As of June 30, 2026 and December 31, 2025, the investments in joint ventures amounting to
W
1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.
(*2)
In prior years, the Company assessed that the value in use of its equity interest in Nickel Mining Company SAS
was likely to be low and accordingly recognized a full impairment loss.
16
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
9. Investment Property
Changes in the carrying amounts of
investment properties for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(a)
For the six -month period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Depreciation(*1)
Transfer(*2)
Ending
Land
W
215,866
(5,200
)
—
(1,004
)
209,662
Buildings
89,988
—
(3,642
)
(933
)
85,413
Structures
13,538
—
(403
)
(140
)
12,995
W
319,392
(5,200
)
(4,045
)
(2,077
)
308,070
(*1)
The useful life and depreciation method of investment property are identical to those of property, plant and
equipment.
(*2)
Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio
and the purpose of use.
(b)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Depreciation(*1)
Transfer(*2)
Ending
Land
W
216,211
—
—
(345
)
215,866
Buildings
97,752
—
(7,417
)
(347
)
89,988
Structures
14,409
—
(821
)
(50
)
13,538
W
328,372
—
(8,238
)
(742
)
319,392
(*1)
The useful life and depreciation method of investment property are identical to those of property, plant and
equipment.
(*2)
Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio
and the purpose of use.
17
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
10. Property, Plant and Equipment
Changes in the carrying
amounts of property, plant and equipment for the
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(a)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Others(*1)
Ending
Land
W
118,418
2,337
—
—
486,473
607,228
Buildings
26,826
—
—
(1,051
)
933
26,708
Structures
6,923
—
—
(209
)
140
6,854
Machinery and equipment
32,422
3,023
(1,620
)
(4,736
)
28
29,117
Vehicles
28
—
—
(8
)
—
20
Furniture and fixtures
17,830
121
(2
)
(1,156
)
—
16,793
Construction-in-progress
500,693
26,868
—
—
(485,497
)
42,064
W
703,140
32,349
(1,622
)
(7,160
)
2,077
728,784
(*1)
Presenting assets transferred from
construction-in-progress
to other property, plant and equipment, assets transferred from investment property and others.
(b)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Disposals
Depreciation
Others(*1)
Ending
Land
W
45,151
34,545
—
—
38,722
118,418
Buildings
28,447
—
—
(1,967
)
346
26,826
Structures
7,338
—
(63
)
(403
)
51
6,923
Machinery and equipment
29,821
9,299
(1,162
)
(5,789
)
253
32,422
Vehicles
44
—
—
(16
)
—
28
Furniture and fixtures
12,933
6,581
(10
)
(1,674
)
—
17,830
Construction-in-progress
292,259
242,172
—
—
(33,738
)
500,693
W
415,993
292,597
(1,235
)
(9,849
)
5,634
703,140
(*1)
Presenting assets transferred from
construction-in-progress
to other property, plant and equipment, assets transferred to investment property, and other expenses.
(c)
Information on lease agreements for which the Company is a lessee is as follows:
1)
Right-of-use
assets
As of June 30, 2026 and December 31, 2025, there are no
right-of-use
assets listed as property, plant and equipment.
2)
Amount recognized in profit or loss
The amounts recognized in profit or loss related to leases for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
For the three-month periods
ended June 30
For the six-month periods
ended June 30
(in millions of Won)
2026
2025
2026
2025
Expenses related to short-term leases
W
3,190
3,067
5,793
5,959
Expenses related to leases of
low-value
assets
1,473
1,269
3,329
2,915
W
4,663
4,336
9,122
8,874
18
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
11. Intangible Assets
Changes in the carrying amounts of
intangible assets for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(a)
For the six -month period ended June 30, 2026
(in millions of Won)
Beginning
Acquisitions
Disposals
Amortization
Others(*2)
Ending
Intellectual property rights
W
928
—
—
(117
)
326
1,137
Membership(*1)
10,992
—
—
—
—
10,992
Development expense
5,369
—
—
(1,135
)
—
4,234
Construction-in-progress
12,157
1,788
—
—
(326
)
13,619
Other intangible assets
213
—
—
(116
)
—
97
W
29,659
1,788
—
(1,368
)
—
30,079
(*1)
Estimated useful life of membership is indefinite.
(*2)
Presenting assets transferred from
construction-in-progress
to other intangible assets.
(b)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Acquisitions
Disposals
Amortization
Others(*2)
Ending
Intellectual property rights
W
803
—
—
(194
)
319
928
Membership(*1)
10,072
920
—
—
—
10,992
Development expense
3,461
2,413
—
(1,916
)
1,411
5,369
Construction-in-progress
6,680
7,230
(23
)
—
(1,730
)
12,157
Other intangible assets
445
—
—
(232
)
—
213
W
21,461
10,563
(23
)
(2,342
)
—
29,659
(*1)
Estimated useful life of membership is indefinite.
(*2)
Presenting assets transferred from
construction-in-progress
to intangible assets and assets transferred from property, plant and equipment, and others.
19
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
12. Other Assets
Other assets as of June 30, 2026
and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Advance payments
W
894
901
Prepaid expenses
1,521
1,198
W
2,415
2,099
Non-current
Long-term advance payments
W
6,342
3,638
Long-term prepaid expenses
112
231
Others
—
—
W
6,454
3,869
13. Borrowings
(a)
Borrowings as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Short-term borrowings
Exchangeable bonds
W
47,469
44,509
Current portion of long-term borrowings
1,573
1,464
49,042
45,973
Long-term borrowings
Long-term borrowings
W
1,068,536
993,857
20
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
13. Borrowings (cont’d)
(b)
Current portion of debentures as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
Lenders
Issuance
date
Maturity
date
Annual
interest rate (%)
June 30, 2026
December 31, 2025
Exchangeable bonds
Foreign currency
exchangeable bonds
Sep. 1, 2021
Sep. 1, 2026
—
W
47,469
44,509
Foreign borrowings
KOREA ENERGY AGENCY
Dec. 27, 2011
Dec. 26, 2026
3 year
Government bond
1,573
1,464
W
49,042
45,973
(c)
The issuance conditions of the exchangeable bonds issued by the Company are as follows:
Foreign currency exchangeable bonds
Type of bond
Exchangeable bonds
Aggregate principal amount(*1)
EUR 27,100,000
Interest rate
- Coupon rate : -
- Yield to maturity : (0.78%)
Maturity date
September 1, 2026
Redemption
- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at
maturity as a lump sum
- Prepayment : The issuer has call option and the bondholders
have put option
Exchange rate
100%
Exchange price(*2) (Won/share)
419,025
Underlying shares
Registered common shares(treasury shares)
Exchange period
From October 12, 2021 to August 22, 2026
Adjustments for exchange price
Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of
options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders
- In the event of a change of control of the Company
- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)
Call option by the issuer
- Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading
days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds
- When the outstanding balance of outstanding bonds is less than 10% of the total issuance
(Clean-Up
Call)
- Where additional reasons for tax burden arise due to the amendment of relevant laws and
regulations, etc
(*1)
Due to investors exercising their early redemption rights, EUR 1,038,800,000 of the total face value of EUR
1,065,900,000 in exchangeable bonds was redeemed during the year ended December 31, 2024.
(*2)
The exchange value has changed due to cash dividends during the six-month period ended june 30, 2026.
The Company has designated exchangeable bonds listed on the Singapore Stock Exchange as financial liabilities measured at fair value
through profit or loss. The quoted transaction price is used in fair value measurement, and changes in fair value are recognized in profit or loss.
21
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
13. Borrowings (cont’d)
(d)
Long-term borrowings and others excluding current portion, as of June 30, 2026 and December 31, 2025
are as follows:
(in millions of Won)
Lenders
Issuance
date
Maturity
date
Annual
interest rate (%)
June 30, 2026
December 31, 2025
Bonds payable in foreign currency(*1)
Global Bonds (5 year maturity)
May. 7, 2025
May. 7, 2030
5.125
611,091
568,243
Bonds payable in foreign currency(*1)
Global Bonds (10 year maturity)
May. 7, 2025
May. 7, 2035
5.750
457,445
425,614
W
1,068,536
993,857
(*1)
The Company enters into currency swap contracts to hedge foreign exchange risk associated with its foreign
currency-denominated bonds.
14. Other Payables
Other payables as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Accounts payable
W
36,195
27,162
Accrued expenses
41,378
23,164
Dividend payable
2,726
3,140
W
80,299
53,466
Non-current
Long-term withholdings
W
36,835
36,388
Less: Present value discount
(785
)
(1,351
)
W
36,050
35,037
15. Other Financial Liabilities
Other financial liabilities as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Financial guarantee liabilities
W
29,840
21,545
22
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
16. Provisions
(a) Provisions as of June 30, 2026
and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Non-current
Current
Non-current
Provision for bonus payments(*1)
W
8,931
—
4,907
—
Provision for restoration(*2)
2,317
2,058
2,742
2,947
Others(*3)
40,504
—
38,772
—
W
51,752
2,058
46,421
2,947
(*1)
Represents the provision for bonuses with the limit of 100% of annual salaries for executives.
(*2)
Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung city, the
Company recognized present values of estimated costs for recovery as provisions for restoration as of June 30, 2026 and December 31, 2025. In order to determine the estimated costs, the Company has assumed that it would use all of
technologies and materials available for now to recover the land. In addition, the Company has applied discount rates of 4.26% to assess present value of these costs.
(*3)
Considering the operational circumstance of the Company’s investments in joint ventures, Nickel Mining
Company SAS, the Company recognized
W
40,504 million of the financial guarantee liabilities the Company provided as other provisions.
(b) Changes in provisions for the six-month period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
1)
For the six-month period ended June 30, 2026
(in millions of Won)
Beginning
Increase
Utilization
Others(*1)
Ending
Provision for bonus payments
W
4,907
8,405
(4,381
)
—
8,931
Provision for restoration
5,689
(988
)
(326
)
—
4,375
Others
38,772
—
—
1,732
40,504
W
49,368
7,417
(4,707
)
1,732
53,810
(*1)
Reflecting the effect of exchange rate fluctuation.
2)
For the year ended December 31, 2025
(in millions of Won)
Beginning
Increase
Utilization
Others(*1)
Ending
Provision for bonus payments
W
4,175
8,465
(7,733
)
—
4,907
Provision for restoration
6,932
341
(1,584
)
—
5,689
Others
35,161
—
—
3,611
38,772
W
46,268
8,806
(9,317
)
3,611
49,368
(*1)
Reflecting the effect of exchange rate fluctuation.
23
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
17. Employee Benefits
(a)
Defined contribution plans
The expense related to defined contribution retirement plans for each of the three-month and six-month periods ended June 30, 2026 and
2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Expense related to post-employment benefit plans under defined contribution plans
W
85
58
156
102
(b)
Defined benefit plans
1)
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position
as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Present value of funded obligations
W
44,255
42,815
Fair value of plan assets
(36,730
)
(37,282
)
Net defined benefit liabilities
W
7,525
5,533
2)
The amounts recognized in relation to net defined benefit plan in the interim condensed separate statements of
comprehensive income for each of the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Current service costs
W
2,047
1,871
4,411
5,184
Interest costs
(35
)
(29
)
(71
)
(58
)
W
2,012
1,842
4,340
5,126
24
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
18. Other Liabilities
Other liabilities as of
June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Current
Advances received
W
3,544
2,420
Withholdings
2,911
3,327
Unearned revenue
53
72
W
6,508
5,819
Non-current
Advances received
W
97
—
Unearned revenue
785
1,351
W
882
1,351
25
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
19. Financial Instruments
(a)
Classification and fair value of financial instruments
1)
The carrying amounts and the fair values of financial assets and financial liabilities by levels in the fair
value hierarchy as of June 30, 2026 and December 31, 2025 are as follows:
①
June 30, 2026
(in millions of Won)
Fair value
Book value
Level 1
Level 2
Level 3
Total
Financial assets
Fair value through profit or loss
Derivative assets
W
170,171
—
170,171
—
170,171
Short term financial instruments
124,179
—
124,179
—
124,179
Other securities
263,894
—
—
263,894
263,894
Fair value through other comprehensive income
Equity securities
151,916
127,275
23,271
1,370
151,916
Financial assets measured at amortized cost(*1)
Cash and cash equivalents
240,948
—
—
—
—
Trade accounts and notes receivable
65,665
—
—
—
—
Debt securities
253,148
—
—
—
—
Other receivables
77,059
—
—
—
—
Deposit instruments
3,770,002
—
—
—
—
W
5,116,982
127,275
317,621
265,264
710,160
Financial liabilities
Fair value through profit or loss
Borrowings
W
47,469
47,469
—
—
47,469
Financial liabilities measured at amortized cost(*1)
Borrowings
1,070,109
—
1,070,109
—
1,070,109
Financial guarantee liabilities
29,840
—
—
—
—
Others
80,420
—
—
—
—
W
1,227,838
47,469
1,070,109
—
1,117,578
(*1)
The fair values of financial assets and liabilities measured at amortized cost except for borrowings
approximates their carrying amounts.
②
December 31, 2025
(in millions of Won)
Fair value
Book value
Level 1
Level 2
Level 3
Total
Financial assets
Fair value through profit or loss
Derivative assets
W
77,751
—
77,751
—
77,751
Short term financial instruments
104,794
—
104,794
—
104,794
Other securities
258,164
—
—
258,164
258,164
Fair value through other comprehensive income
Equity securities
170,819
145,885
23,564
1,370
170,819
Financial assets measured at amortized cost(*1)
Cash and cash equivalents
184,416
—
—
—
—
Trade accounts and notes receivable
41,384
—
—
—
—
Debt securities
230,000
—
—
—
—
Other receivables
66,208
—
—
—
—
Deposit instruments
3,120,002
—
—
—
—
W
4,253,538
145,885
206,109
259,534
611,528
Financial liabilities
Fair value through profit or loss
Borrowings
W
44,509
44,509
—
—
44,509
Financial liabilities measured at amortized cost(*1)
Borrowings
995,321
—
995,321
—
995,321
Financial guarantee liabilities
21,545
—
—
—
—
Others
77,383
—
—
—
—
W
1,138,758
44,509
995,321
—
1,039,830
(*1)
The fair values of financial assets and liabilities measured at amortized cost approximates their carrying
amounts.
26
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
19. Financial Instruments (cont’d)
2)
Financial liabilities were recognized in connection with financial guarantee contracts as of June 30,
2026. Details of the amount of guarantees provided are as follows:
(in millions of Won)
Guarantee limit
Guarantee amount
Guarantee beneficiary
Financial institution
Foreign
currency
Won
equivalent
Foreign
currency
Won
equivalent
Subsidiaries
POSCO ASIA COMPANY LIMITED
Credit Agricole
USD
75,000,000
115,613
70,000,000
107,905
ING
USD
75,000,000
115,613
—
—
Shinhan
USD
50,000,000
77,075
50,000,000
77,075
POSCO Argentina S.A.U.
BNP
USD
110,000,000
169,565
109,503,786
168,800
CITI
USD
187,975,000
289,763
185,529,411
285,994
Credit Agricole
USD
187,975,000
289,763
185,529,411
285,994
HSBC
USD
187,975,000
289,763
175,231,912
270,120
JPM
USD
187,975,000
289,763
185,529,412
285,994
BANK OF AMERICA
USD
50,900,000
78,462
50,900,000
78,462
KEXIM
USD
167,100,000
257,585
167,081,068
257,555
Joint ventures
NICKEL MINING COMPANY SAS
ING
EUR
46,000,000
81,010
46,000,000
81,010
PT Nicole Metal Industry
STANDARD CHARTERED
USD
24,500,000
37,767
18,757,063
28,914
OCBC
USD
15,680,000
24,171
—
—
USD
1,320,080,000
2,034,903
1,198,062,063
1,846,813
EUR
46,000,000
81,010
46,000,000
81,010
3)
The classification of finance income and costs by category of financial instrument for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
①
For the
six-month
period ended June 30, 2026
(in millions of Won)
Finance income and costs
Interest income
(expense)
Gain and loss on
foreign currency
Gain on
disposal
Loss on
valuation
Others
Total
Other
comprehensive
loss
Financial assets at fair value
through profit or loss
W
—
6,971
546
93,422
—
100,939
—
Financial assets at fair value
through other comprehensive income
—
—
—
—
—
—
(13,846
)
Financial assets measured at
amortized cost
55,869
(1,797
)
—
—
—
54,072
—
Financial liabilities at fair value
through profit or loss
—
(2,032
)
—
(929
)
—
(2,961
)
—
Financial liabilities measured at
amortized cost
(23,911
)
(77,085
)
—
—
2,721
(98,275
)
—
W
31,958
(73,943
)
546
92,493
2,721
53,775
(13,846
)
27
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
②
For the
six-month
period ended June 30, 2025
(in millions of Won)
Finance income and costs
Interest income
(expense)
Gain and loss on
foreign currency
Gain and loss
on disposal
Gain on
valuation
Others
Total
Other
comprehensive
loss
Financial assets at fair value
through profit or loss
W
—
(7,408
)
8,695
(123
)
—
1,164
—
Financial assets at fair value
through other comprehensive income
—
—
—
—
—
—
(49,724
)
Financial assets measured at
amortized cost
49,628
(13,424
)
—
—
—
36,204
—
Financial liabilities at fair value
through profit or loss
—
(1,653
)
—
(37,219
)
—
(38,872
)
—
Financial liabilities measured at
amortized cost
(8,277
)
50,347
—
—
2,279
44,349
—
W
41,351
27,862
8,695
(37,342
)
2,279
42,845
(49,724
)
20. Share Capital and Capital Surplus
(a) Details of share capital as of June 30, 2026 and December 31, 2025 are as follows:
(in Won, except share information)
June 30, 2026
December 31, 2025
Authorized shares
200,000,000
200,000,000
Par value
W
5,000
5,000
Issued shares(*1,2)
79,241,527
80,932,952
Share capital(*3)
W
482,403,125,000
482,403,125,000
(*1)
As of June 30, 2026, total number of American Depository Receipts (ADRs) outstanding in overseas stock
market amounts to 12,701,316 and such ADRs are equivalent to 3,175,329 shares of common stock.
(*2)
Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2026, the Company decided
to retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2026. As a result, as of June 30, 2026, the Company’s total number of issued shares has decreased.
(*3)
As of June 30, 2026, the difference between the ending balance of common stock and the aggregate par value
of issued common stock is
W
86,195 million due to retirement of 17,239,098 treasury stocks.
(b)
Details of capital surplus as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Share premium
W
463,825
463,825
Gain on disposal of treasury shares
808,994
808,994
Gain from merger
80,627
80,627
Loss on disposal of hybrid bonds
(1,787
)
(1,787
)
Share-based payment
16,331
16,331
W
1,367,990
1,367,990
28
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
21. Accumulated Other Comprehensive Income
Accumulated
other comprehensive income as of June 30, 2026 and December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Changes in fair value of equity investments at fair value through other comprehensive
income
W
(59,720
)
(45,874
)
22. Treasury Shares
Based on the Board of Directors’ resolution, the Company holds treasury shares for business purposes including price stabilization. Changes in treasury
shares for
six-month
period ended June 30, 2026 and the year ended December 31, 2025 are as follows:
(shares, in millions of Won)
June 30, 2026
December 31, 2025
Number of shares
Amount
Number of shares
Amount
Beginning
5,312,173
W
1,176,316
7,003,598
W
1,550,862
Retirement of treasury shares
(1,691,425
)
(374,545
)
(1,691,425
)
(374,546
)
Ending
3,620,748
W
801,771
5,312,173
W
1,176,316
23. Operating Revenue
(a)
Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for each of
the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
For the three-month periods
For the six-month periods
ended June 30
ended June 30
(in millions of Won)
2026
2025
2026
2025
Types of revenue
Dividend income
W
73,394
109,514
881,978
728,223
Others
41,125
45,254
82,901
91,242
W
114,519
154,768
964,879
819,465
Timing of revenue recognition
Revenue recognized at a point in time
W
73,394
109,514
881,978
728,223
Revenue recognized over time
41,125
45,254
82,901
91,242
W
114,519
154,768
964,879
819,465
29
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
23. Operating Revenue (cont’d)
(b)
Details of contract assets and liabilities from contracts with customers as of June 30, 2026 and
December 31, 2025 are as follows:
(in millions of Won)
June 30, 2026
December 31, 2025
Receivables
Trade accounts and notes receivable
W
65,665
41,384
Contract assets
Unbilled receivables
57,447
116,284
Contract liabilities
Advance received
3,641
2,420
Unearned income
838
1,423
24. Operating Expenses
Operating expenses for each of the three-month and six-month periods ended June 30, 2026 and 2025 are as follows:
For the three-month periods
ended June 30
For the six-month periods
ended June 30
(in millions of Won)
2026
2025
2026
2025
Wages and salaries
W
19,804
16,433
39,809
35,353
Expenses related to post-employment benefits
2,046
2,114
4,260
5,716
Other employee benefits
3,849
3,753
8,167
8,745
Travel
1,820
2,095
3,024
3,511
Taxes and public dues
13,632
12,851
13,785
12,896
Depreciation
3,223
2,976
6,440
5,811
Amortization
665
608
1,324
1,026
Rental
1,662
1,904
4,198
3,820
Repairs
122
104
242
235
Advertising
5,195
6,307
11,314
10,106
Research & development
34,941
36,008
67,804
71,033
Service fees
27,753
22,858
45,187
35,933
Supplies
51
58
103
142
Vehicles maintenance
490
606
988
1,220
Industry association fee
274
725
1,520
1,872
Training
629
580
804
648
Others
2,092
2,348
4,871
4,577
W
118,248
112,328
213,840
202,644
30
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
25. Finance Income and Costs
Details of finance income
and costs for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Finance income
Interest income
W
30,575
27,954
55,869
49,628
Gain on foreign currency transactions
10,305
15,057
11,653
15,187
Gain on foreign currency translations
2,725
50,590
10,111
51,311
Gain on valuation of derivatives
14,731
—
92,420
—
Gain on disposal of financial assets at fair value through profit or loss
—
860
546
8,695
Gain on valuation of financial assets at fair value through profit or loss
599
202
1,002
474
Gain on valuation of financial liabilities at fair value through profit or loss
—
—
—
—
Others
1,380
1,200
2,727
2,284
W
60,315
95,863
174,328
127,579
Finance costs
Interest expenses
W
7,298
8,008
23,911
8,277
Loss on foreign currency transactions
14,158
25,742
14,310
26,540
Loss on foreign currency translations
22,437
10,330
81,397
12,096
Loss on valuation of derivatives
—
36,216
—
36,216
Loss on valuations of financial assets at fair value through profit or loss
—
(772
)
—
597
Loss on valuation of financial liabilities at fair value through profit or loss
509
922
929
1,003
Loss on transactions of equity securities
—
—
—
—
Others
3
3
6
5
W
44,405
80,449
120,553
84,734
26. Other
Non-Operating
Income and Expenses
Details of other
non-operating
income and expenses for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
For the three-month periods
ended June 30
For the six-month periods
ended June 30
(in millions of Won)
2026
2025
2026
2025
Other
non-operating
income
Gain on Disposal of Investments in Subsidiaries, associates and joint ventures
W
30,673
—
30,673
—
Reversal of impairment loss on other accounts receivables
988
33
988
33
Reversal of other provisions
—
—
—
—
Others
1,282
998
2,364
1,914
W
32,943
1,031
34,025
1,947
Impairment loss on investments in subsidiaries, associates and joint ventures
Impairment loss on other accounts receivables
W
—
—
—
—
Loss on disposals of property, plant and equipment
1,622
48
1,622
735
Impairment loss on investments in subsidiaries, associates and joint ventures
3,049
6,651
25,822
6,651
Donations
5,002
5,001
5,002
5,501
Increase of other provisions
(34
)
720
—
756
Others
1,294
451
1,570
752
W
10,933
12,871
34,016
14,395
31
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
27. Expenses by Nature
Expenses that are recorded by
nature as cost of sales, operating expenses and other
non-operating
expenses in the statements of comprehensive income for each of the three-month and
six-month
periods
ended June 30, 2026 and 2025 are as follows (excluding finance costs and income tax expenses):
(in millions of Won)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Employee benefits expenses
W
29,595
27,179
61,207
60,360
Depreciation(*1)
5,678
4,238
11,205
8,240
Amortization
687
630
1,368
1,061
Service fees
28,250
23,483
46,700
37,675
Rental
4,662
4,477
9,121
9,022
Advertising
5,213
6,311
11,334
10,110
Impairment loss on investments in subsidiaries, associates and joint ventures
3,049
6,651
25,822
6,651
Research & development
21,953
23,088
40,624
42,712
Other expenses
30,095
29,142
40,476
41,207
W
129,182
125,199
247,857
217,038
(*1)
Including depreciation of investment property.
28. Income Taxes
The effective tax rates of the Company
for each of the
six-month
periods ended June 30, 2026 and 2025 are 3.5% and 1.9%, respectively.
(a)
Income taxes
The Company vertically spun off its steel business at the
spin-off
date on March 1, 2022. The Company’s
vertical
spin-off
meets the requirements for qualified
spin-off
under the Corporate Tax Act. Accordingly, transfer gains of
W
8,452,339 million under the Corporate Tax Act were incurred for the net asset transferred to the newly established company (POSCO). For the transfer gain, the Company simultaneously set provision for
accelerated depreciation and recognized deferred tax liabilities.
Deductible temporary differences related to the investment in newly established company
(POSCO), which arise from transfer gains under the Corporate Tax Act, were not recognized as deferred tax assets, since it is not probable they will reverse through disposal or liquidation.
32
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
28. Income Taxes (cont’d)
(b)
Application of the Consolidated Tax Payment System
From the
six-month
period ended June 30, 2026, the Company has applied the consolidated tax payment system, under
which a controlling company and its domestic subsidiaries, when economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is
responsible for filing and paying the corporate income tax on behalf of the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.
(c)
Global minimum
top-up
tax
In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, which is effective for the fiscal years starting on
or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the
six-month
period ended June 30, 2026 as it is subject to global minimum
top-up
tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. The Company reviewed subsidiaries qualifying as taxpayer, including the Company, and, as a result, did not
recognize any income tax expense for the
six-month
period ended June 30, 2026 as the impact of the global minimum
top-up
tax on the separate financial statements as
of June 30, 2026 would not be significant. Furthermore, the Company applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in
KIFRS 1012
Income Taxes
. Accordingly, it did not recognize deferred tax assets and liabilities related to the global minimum
top-up
tax and does not disclose information related to deferred income tax.
33
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
29. Earnings per Share
(a)
Basic earnings per share for each of the three-month and
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in Won, except share information)
For the three-month periods
ended June 30
For the
six-month
periods
ended June 30
2026
2025
2026
2025
Profit for the period
W
13,242,387,324
46,145,579,835
776,320,355,897
634,903,318,088
Weighted-average number of common shares outstanding(*1)
75,620,779
75,620,779
75,620,779
75,620,779
Basic earnings per share
W
175
610
10,266
8,396
(*1)
The weighted-average number of common shares outstanding used to calculate basic earnings per share is as
follows:
(shares)
For the three-month periods
ended June 30
For the six-month periods
ended June 30
2026
2025
2026
2025
Weighted-average shares outstanding
79,241,527
80,932,952
80,082,567
81,773,992
Weighted-average number of treasury shares
(3,620,748
)
(5,312,173
)
(4,461,788
)
(6,153,213
)
Weighted-average number of common shares outstanding
75,620,779
75,620,779
75,620,779
75,620,779
The Company has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of
June 30, 2026 and 2025. The diluted earnings per share for the
six-month
period ended June 30, 2026 is the same as the basic earnings per share due to the anti-dilutive effect.
34
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
30. Related Party Transactions
(a)
Related parties of the Company as of June 30, 2026 are as follows:
Type
Company
Subsidiaries
[Domestic]
POSCO, POSCO Eco & Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE
Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO
M-TECH,
Busan E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation,
POSCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION, Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd., TANCHEON E&E, POSCO IH, POSCO A&C Co., Ltd, Posco Group University, POSCO GY
Solution, POSCO GYR Tech, POSCO GYS Tech, POSCO PR Tech, POSCO PS Tech, POSCO PH Solution, POSCO Humans Co.,Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd.,
Songdo Development PMC
(Project Management Company) LLC.,
POSCO-GS
Eco Materials Co., Ltd, Korea Fuel Cell and others.
[Foreign]
POSCO America Corporation, POSCO AUSTRALIA PTY
LTD., POSCO Asia Co., Ltd., POSCO (Zhangjiagang) Stainless Steel Co.,Ltd., POSCO-China Holding Corporation, POSCO JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO
Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP and others.
Investments in associates and joint ventures
[Domestic]
POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., SNNC, Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding
Co.,Ltd., and others.
[Foreign]
Roy Hill Holdings Pty Ltd,
POSCO-NPS
Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel
Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG LTD., Nickel Mining Company SAS and others.
(b)
Material transactions with the related companies for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
1)
For the
six-month
period ended June 30, 2026
(in millions of Won)
Sales and others(*1)
Purchase and others
Sales
Dividends
Others
Purchase of fixed
assets
Others
Subsidiaries(*2)
POSCO
W
70,727
605,705
14
—
8,404
POSCO Eco & Challenge Co., Ltd.
3,322
—
—
10,258
1,702
POSCO STEELEON CO., Ltd
508
—
—
—
1
POSCO DX
578
18,390
—
190
7,363
POSCO Research Institute
—
—
—
—
4,595
eNtoB Corporation
—
—
—
87
5,175
POSCO FUTURE M CO., LTD.
1,348
24,596
14
—
7
POSCO INTERNATIONAL Corporation
3,130
124,396
—
—
7
Busan E&E Co,. Ltd.
—
3,618
—
—
—
POSCO America Corporation
—
—
—
—
4,061
Others
2,438
2,313
2,547
—
15,880
82,051
779,018
2,575
10,535
47,195
Associates and joint ventures(*2)
POSCO-NPS
Niobium LLC
—
12,359
—
—
—
Roy Hill Holdings Pty Ltd
—
77,257
—
—
—
Others
458
7,060
180
—
208
458
96,676
180
—
208
W
82,509
875,694
2,755
10,535
47,403
(*1)
Sales and others mainly consist of trademark usage income, rental income, and dividend income from
subsidiaries, associates and joint ventures.
(*2)
As of June 30, 2026, the Company provided payment guarantees to the related parties (see Note 19).
35
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
30. Related Party Transactions (cont’d)
2)
For the
six-month
period ended June 30, 2025
(in millions of Won)
Sales and others(*1)
Purchase and others
Sales
Dividends
Others
Purchase of fixed
assets
Others
Subsidiaries(*2)
POSCO
W
79,129
332,858
—
370
7,526
POSCO Eco & Challenge Co., Ltd.
4,842
11,037
—
208
—
POSCO STEELEON CO., Ltd
593
—
—
—
—
POSCO DX
1,040
12,425
—
3,181
7,900
POSCO Research Institute
—
—
—
—
4,580
eNtoB Corporation
—
—
—
—
4,327
POSCO FUTURE M CO., LTD.
1,767
11,671
—
—
24
POSCO INTERNATIONAL Corporation
2,784
192,814
166
—
10
Busan E&E Co,. Ltd.
—
3,618
—
—
—
POSCO America Corporation
—
—
—
—
3,338
Others
678
1,606
2,165
—
9,399
90,833
566,029
2,331
3,759
37,104
Associates and joint ventures(*2)
POSCO-NPS
Niobium LLC
—
9,896
—
—
—
Roy Hill Holdings Pty Ltd
—
94,502
—
—
—
Others
409
39,971
119
—
—
409
144,369
119
—
—
W
91,242
710,398
2,450
3,759
37,104
(*1)
Sales and others mainly consist of trademark usage income, rental income, and dividend income from
subsidiaries, associates and joint ventures.
(*2)
As of June 30, 2025, the Company provided payment guarantees to the related parties (see Note 19).
(c)
The balances of receivables and payables arising from significant transactions between the Company and the
related parties as of June 30, 2026 and December 31, 2025 are as follows:
1)
June 30, 2026
(in millions of Won)
Receivables
Payables
Trade accounts
and notes
receivable
Others
Total
Accounts
payable
Others
Total
Subsidiaries
POSCO
W
45,921
111,950
157,871
1,224
46,038
47,262
POSCO Eco & Challenge Co., Ltd.
3,372
—
3,372
4,257
710
4,967
POSCO STEELEON CO., Ltd
602
—
602
—
—
—
POSCO DX
6,501
77
6,578
1,565
51
1,616
POSCO FUTURE M CO., LTD.
2,647
153
2,800
—
48
48
POSCO Mobility Solution Corporation
360
—
360
—
13
13
POSCO INTERNATIONAL Corporation
3,102
—
3,102
—
521
521
POSCO Argentina S.A.U
—
44,822
44,822
—
—
—
Others
1,816
10,498
12,314
8,169
420
8,589
64,321
167,500
231,821
15,215
47,801
63,016
Associates and joint ventures
SNNC
427
—
427
—
—
—
Roy Hill Holdings Pty Ltd
53,900
—
53,900
—
—
—
FQM Australia Holdings Pty Ltd(*1)
—
261,699
261,699
—
—
—
Others
104
793
897
—
—
—
54,431
262,492
316,923
—
—
—
W
118,752
429,992
548,744
15,215
47,801
63,016
(*1)
FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest and
the Company has recognized allowance for doubtful accounts for all of other receivables.
36
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
30. Related Party Transactions (cont’d)
2)
December 31, 2025
(in millions of Won)
Receivables
Payables
Trade accounts
and notes
receivable
Others
Total
Accounts
payable
Others
Total
Subsidiaries
POSCO
W
92,175
81,349
173,524
1,657
40,742
42,399
POSCO Eco & Challenge Co., Ltd.
6,793
693
7,486
305
3,788
4,093
POSCO STEELEON CO., Ltd
1,299
—
1,299
—
—
—
POSCO DX
1,109
48
1,157
3,738
47
3,785
POSCO FUTURE M CO., LTD.
4,904
1
4,905
—
62
62
POSCO Mobility Solution Corporation
713
—
713
—
11
11
POSCO INTERNATIONAL Corporation
6,176
—
6,176
—
508
508
POSCO Argentina S.A.U
—
27,929
27,929
—
—
—
Others
3,606
7,874
11,480
4,274
537
4,811
116,775
117,894
234,669
9,974
45,695
55,669
Associates and joint ventures
SNNC
929
—
929
—
—
—
Roy Hill Holdings Pty Ltd
39,761
—
39,761
—
—
—
FQM Australia Holdings Pty Ltd(*1)
—
243,601
243,601
—
—
—
Others
203
867
1,070
—
—
—
40,893
244,468
285,361
—
—
—
W
157,668
362,362
520,030
9,974
45,695
55,669
(*1)
FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and
accrued
interest. Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables.
(d)
For each of the
six-month
periods ended June 30, 2026 and
2025, there were additional investments in subsidiaries and others amounting to
W
108,827 million and
W
301,743 million, respectively.
(e)
For each of the
six-month
periods ended June 30, 2026 and 2025,
details of compensation to key management officers are as follows:
(in millions of Won)
June 30, 2026
June 30, 2025
Short-term benefits
W
18,156
13,241
Retirement benefits
2,333
3,280
W
20,489
16,521
Key management officers include directors (including
non-standing
directors), executive officials and fellow officials who have significant influence and responsibilities in the Company’s business and operations.
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Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
31. Commitments and Contingencies
(a)
Commitments
1)
As of June 30, 2026, the Company entered into commitments with KOREA ENERGY AGENCY for long-term foreign
currency borrowing, which is limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowing depends on the success of the project. The
Company is not liable for the repayment of full or part of the money borrowed if the respective project fails. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of
June 30, 2026, the ending balance of borrowing amounts to USD 1.02 million.
2)
The Company has deposited 87,977 treasury shares for exchange with the Korea Securities Depository in relation
to foreign currency exchangeable bonds as of June 30, 2026.
(b)
As of June 30, 2026, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral for
long-term foreign currency borrowings.
(c)
Litigation in progress
The Company is involved in 3 lawsuits for contract payment amounting to
W
600 million as defendant as of
June 30, 2026. However, the Company has not recognized any provisions for these litigation cases since the Company does not believe it has a present obligation as of June 30, 2026.
(d)
The Company has a joint obligation with the company newly established through
spin-off,
POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the
spin-off
date.
(e)
As of June 30, 2026, the Company has been provided a payment guarantee of
W
8,887 million from Seoul Guarantee Insurance in relation to license guarantees and others.
(f)
As of June 30, 2026, the Company has entered into a credit line agreement with Woori Bank, with a limit of
W
20,000 million.
38
Table of Contents
POSCO HOLDINGS INC.
Notes to the interim condensed separate financial statements, continued
June 30, 2026 and 2025 (Unaudited)
32. Cash Flows from Operating Activities
Changes in
operating assets and liabilities for each of the
six-month
periods ended June 30, 2026 and 2025 are as follows:
(in millions of Won)
June 30, 2026
June 30, 2025
Trade accounts and notes receivable
W
58,387
65,003
Other accounts receivable
(10,733
)
32,242
Prepaid expenses
(204
)
(452
)
Other current assets
7
(96
)
Other
non-current
assets
(2,705
)
8
Other accounts payable
24,042
(3,402
)
Accrued expenses
16,460
15,771
Advances received
1,123
(770
)
Withholdings
(416
)
(184
)
Unearned revenue
(584
)
1,916
Other current liabilities
3,696
532
Payments of severance benefits
(2,484
)
(6,187
)
Plan assets
—
3,946
W
86,589
108,327
33. Events after the reporting period
(a)
Pursuant to the resolution of the Board of Directors on August 7, 2026, the Company decided to pay interim cash
dividends of
W
2,000 per common share (Total dividends:
W
151.2 billion).
(b)
Pursuant to the resolution of the Board of Directors on August 7, 2026, the Company decided to sell
36,434,963 common shares of POSCO International Corporation, representing approximately 20.71% of its issued shares, at KRW 55,400 per share, and 23,385,917 shares of POSCO DX Co., Ltd., representing approximately 15.38% of its issued shares, at KRW
20,600 per share.
(c)
Pursuant to the resolution of the Board of Directors on May 12, 2026, the Company decided to provide a
payment guarantee for borrowings of USD 700 million of POSCO Argentina S.A.U. The related loan agreement was entered into on August 6, 2026, and the guarantee period is three years from August 6, 2026.
39