6-K - PKX - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2025

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 Consolidated Financial Statements audited by independent auditors

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: March 17, 2025		By	/s/ Han, Young-Ah
		(Signature)
		Name:	Han, Young-Ah
		Title:	Senior Vice President

EX-99.1

Exhibit 99.1

POSCO HOLDINGS INC.

andits subsidiaries

Consolidated financial statements

for the year ended December 31, 2024

with the independent auditor’s report

Table of Contents

	Page
Independent Auditor’s Report		1
Consolidated Financial Statements
Consolidated Statements of Financial Position		7
Consolidated Statements of Comprehensive Income		9
Consolidated Statements of Changes in Equity		10
Consolidated Statements of Cash Flows		12
Notes to the Consolidated Financial Statements		14
Independent Auditor’s Report on Internal Control over Financial Reporting		119
Report on the Operating Status of Internal Control over Financial Reporting		121

Independent auditor’s report

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

POSCO HOLDINGS INC.

Opinion

We have audited the consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated statement of financial position as of December 31, 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”).

We also have audited the Group’s internal control over financial reporting (“ICFR”) as of December 31, 2024 based on the Conceptual Framework for Design and Operation of ICFR established by the Operating Committee of ICFR in the Republic of Korea, in accordance with Korean Standards on Auditing (“KSA”), and our report dated March 12, 2025 expressed an unqualified opinion thereon.

Basis for opinion

We conducted our audit in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(a) Cut-off of export sales (POSCO)

As described in note 40 to the consolidated financial statements, the Group’s products and merchandise sales include a significant portion of export sales. The timing of revenue recognition for export sales requires management’s judgment as export sales involves various performance obligations depending on the contract with customers and the International Commercial Terms. Also, due to the lengthy time it takes to deliver the products and merchandise to their destination, there is a high possibility of misstatement in the timing of revenue recognition

LOGO

Considering the inherent risks of export sales and the significance of the export sales of the individual subsidiary to the consolidated revenue, we have identified the appropriateness of the timing of revenue recognition for export sales of POSCO as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

•	Understanding the entity’s processes and internal controls related to export sales;
•	Assessing the effectiveness of the design and operation of the entity’s internal controls related to the<br>appropriateness of timing of revenue recognition;
---	---
•	Inspecting the document to assess the appropriateness of timing of revenue recognition for a sample of export<br>sales during the current period; and
---	---
•	Inspecting the document to assess the appropriateness of timing of revenue recognition for a selected sample of<br>export sales transactions occurred during a certain period close to and after year-end
---	---

(b) Occurrence of overseas sales (three-country transactions) (POSCO International Corporation)

As described in note 40 to the consolidated financial statements, the Group includes a significant portion of export sales. Among those, POSCO International Corporation’s overseas sales (three-country transactions) are not transferred by directly taking possession of the actual inventory, but rather, control over inventory is transferred through the Bill of Lading (B/L) document. For such reasons, it was assessed that there is a high possibility of error in the occurrence of revenue.

Considering the significance of the overseas sales (three-country transactions) to the consolidated revenue and the existence of significant risk in terms of occurrence, we have identified the occurrence for overseas sales (three-country transactions) of POSCO International Corporation as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

•	Understanding the entity’s accounting policies over overseas sales (three-country transactions);<br>
•	Understanding the internal controls established by the entity related to occurrence of export sales<br>(three-country transactions) and assessing the effectiveness of design and operation of relevant controls;
---	---
•	Reviewing the occurrence by obtaining key documents raised when export sales (three-country transactions) occur;<br>and
---	---
•	Checking the shipment of actual inventory through shipping vessel tracking
---	---

As described in note 28 to the consolidated financial statements, the Group’s revenue from construction contract amounted to W7,306,785 million, which was a significant portion of the consolidated revenue for the year ended December 31, 2024 and mostly incurred from POSCO Eco & Challenge Co., Ltd. The Group recognizes revenue and costs based on the percentage-of-completion of the contract activities as at the end of the reporting period when the outcome of the contracts applying the input method is reliably measurable. The percentage-of-completion of revenue activities is calculated based on the ratio of the accumulated contract costs incurred for work performed less costs that do not reflect the progress stage over the estimated total contract costs.

LOGO

Most of the Group’s construction contracts are performed over a long-term period, and the total contract costs are estimated based on material costs, labor costs, outsourcing costs and others which are expected to incur during the construction period. Additionally, since the construction revenue of the reporting period is calculated based on the total contract revenue multiplied by the cumulative percentage-of-completion as at the end of the reporting period less the amount recognized by the end of the previous period, a change in the percentage-of-completion has an impact on construction revenue of the current and future period and may result in a misstatement in terms of timing of revenue recognition. Considering the impact of the uncertainty in long-term contracts, change in estimates of total contract costs and the estimates in the percentage-of-completion based on the input method, on the financial statements, we identified estimation of the total contract costs and the percentage-of-completion based on the input method related to POSCO Eco & Challenge Co., Ltd. as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

•	Understanding and assessing certain internal controls over the estimation of total contract costs and<br>accumulation of costs per project;
•	Obtaining written statements from the person in charge of the construction field in relation to the contract<br>amounts and total estimated costs of a sample of major projects selected and reconciling with the information in the system;
---	---
•	Assessing management’s assumption used for estimation of material costs and outsourcing costs by analyzing<br>the estimates of total contract costs on a sample of new projects selected;
---	---
•	For contracts with significant changes in total contract costs, inquiring the person in charge of the<br>construction field of the reasons for change and inspecting supporting documents as to the cause of such changes;
---	---
•	Comparing retrospectively the cost-of-completion ratio and the execution ratio of the prior year on a sample of<br>projects completed during the current period to assess the accuracy of estimation;
---	---
•	Inspecting the documents that support the appropriateness of recognition timing for input costs actually incurred<br>per project on a sampling basis; and
---	---
•	Checking the existence of construction projects and the appropriateness of the percentage-of-completion by site<br>visits on a sample of construction projects selected
---	---

Other matter

The consolidated financial statements of the Group for the year ended December 31, 2023, were audited by KPMG Samjong Accounting Corp. who expressed an unqualified opinion on those statements on March 13, 2024.

Responsibilities of management and those charged with governance for the consolidatedfinancial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

LOGO

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to<br>fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances.
---	---
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
---	---
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are<br>required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to<br>the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
---	---
•	Evaluate the overall presentation, structure and content of the consolidated financial statements, including the<br>disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
---	---
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business<br>activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.<br>
---	---

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

LOGO

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Yongwoo Lee.

Seoul, Korea

March 12, 2025

This audit report is effective as of the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s report date to the time this report is used. Such events and circumstances could significantly affect the accompanying consolidated financial statements and may result in modifications to this report.

POSCO HOLDINGS INC. and its subsidiaries

Consolidated financial statements

For the years ended December 31, 2024 and 2023

“The accompanying consolidated financial statements, including all footnotes and disclosures, have been prepared by, and are the responsibility of, the Group.”

Jeong, Ki-Seop

Chief Strategy Officer

POSCO HOLDINGS INC.

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Financial Position

As ofDecember 31, 2024 and 2023

(in millions of Won)	Notes	December 31, 2024
Assets
Cash and cash equivalents	4,5,23	~~W~~	6,767,898	6,670,879
Trade accounts and notes receivable, net	6,17,23,29,37		10,821,620	11,015,303
Other receivables, net	7,23,37		2,261,323	1,947,529
Other short-term financial assets	8,23		8,499,389	11,403,166
Inventories	9		14,143,500	13,825,514
Current income tax assets			140,494	101,979
Assets held for sale	10		608,758	406,945
Other current assets	16		786,943	840,984
Total current assets			44,029,925	46,212,299
Long-term trade accounts and notes receivable, net	6,23		27,779	42,516
Other receivables, net	7,23,37		1,306,329	1,452,445
Other long-term financial assets	8,23		2,571,651	2,708,325
Investments in associates and joint ventures	11		4,738,793	5,020,264
Investment property, net	13		1,955,896	1,616,294
Property, plant and equipment, net	14		39,846,828	35,206,248
Intangible assets, net	15		4,774,824	4,714,784
Defined benefit assets, net	21		409,147	464,758
Deferred tax assets	35		3,609,344	3,334,266
Other non-current assets	16		133,684	173,195
Total non-current assets			59,374,275	54,733,095
Total assets		~~W~~	103,404,200	100,945,394

(continued)

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Financial Position, Continued

As of December 31, 2024 and 2023

(in millions of Won)	Notes	December 31, 2024
Liabilities
Trade accounts and notes payable	23,37	~~W~~	6,159,127		5,782,825
Short-term borrowings and current installments of long-term borrowings	4,17,23		11,115,747		10,959,217
Other payables	18,23,37		3,463,871		2,737,478
Other short-term financial liabilities	19,23		120,875		163,626
Current income tax liabilities			350,570		319,096
Liabilities directly associated with the assets held for sale	10		—		141,890
Provisions	20		396,030		419,744
Other current liabilities	22,28,29		1,173,499		1,337,642
Total current liabilities			22,779,719		21,861,518
Long-term trade accounts and notes payable	23		2,049		—
Long-term borrowings, excluding current installments	4,17,23		14,881,620		15,011,163
Other payables	18,23		809,012		873,565
Other long-term financial liabilities	19,23		72,920		153,782
Defined benefit liabilities, net	21		43,143		38,754
Deferred tax liabilities	35		2,685,549		2,760,234
Long-term provisions	20		580,559		468,009
Other non-current liabilities	22		99,260		114,472
Total non-current liabilities			19,174,112		19,419,979
Total liabilities			41,953,831		41,281,497
Equity
Share capital	24		482,403		482,403
Capital surplus	24		1,648,894		1,663,334
Other components of equity	26		1,155,429		67,256
Treasury shares	27		(1,550,862	)	(1,889,658	)
Retained earnings			53,658,367		53,857,514
Equity attributable to owners of the controlling company			55,394,231		54,180,849
Non-controlling interests	25		6,056,137		5,483,048
Total equity			61,450,368		59,663,897
Total liabilities and equity		~~W~~	103,404,199		100,945,394

The accompanying notes are an integral part of the consolidated financial statements.

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Comprehensive Income

Forthe years ended December 31, 2024 and 2023

(in millions of Won, except per share information)	Notes	2024
Revenue	28,29,37	~~W~~	72,688,143		77,127,197
Cost of sales	29,31,34		(67,275,205	)	(70,710,292	)
Gross profit			5,412,938		6,416,905
Selling and administrative expenses	23,30,34
Other administrative expenses			(3,004,478	)	(2,651,902	)
Selling expenses			(234,888	)	(233,579	)
Operating profit			2,173,572		3,531,424
Share of profit (loss) of equity-accounted investees, net	11		(256,458	)	269,678
Finance income and costs	23,32
Finance income			5,211,595		3,830,746
Finance costs			(5,080,735	)	(4,202,996	)
Other non-operating income and expenses	23,33,34
Other non-operating income			387,105		401,986
Other non-operating expenses			(1,183,876	)	(1,195,683	)
Profit before income tax			1,251,203		2,635,155
Income tax expense	35		(303,623	)	(789,305	)
Profit			947,580		1,845,850
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in equity-accounted investees			(42,753	)	28,745
Foreign currency translation differences			231,347		76,433
Remeasurements of defined benefit plans	21		(95,345	)	(118,548	)
Net changes in fair value of equity investments at fair value through other comprehensive<br>income	23		(150,443	)	257,725
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in equity-accounted investees			331,616		207,860
Foreign currency translation differences			888,466		34,118
Gains or losses on valuation of derivatives	23		(110	)	(1,292	)
Other comprehensive income, net of tax			1,162,778		485,041
Total comprehensive income		~~W~~	2,110,358		2,330,891
Profit attributable to:
Owners of the controlling company		~~W~~	1,094,917		1,698,092
Non-controlling interests			(147,337	)	147,758
Profit		~~W~~	947,580		1,845,850
Total comprehensive income attributable to :
Owners of the controlling company		~~W~~	2,008,919		2,131,737
Non-controlling interests			101,439		199,154
Total comprehensive income		~~W~~	2,110,358		2,330,891
Earnings per share (in Won)	36
Basic earnings per share (in Won)			14,451		22,382
Diluted earnings per share (in Won)		~~W~~	12,250		22,382

The accompanying notes are an integral part of the consolidated financial statements.

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Changes in Equity

For theyears ended December 31, 2024 and 2023

(in millions of Won)	Attributable to owners of the controlling company																Non-
	Share		Capital		Other			Treasury			Retained						controlling
	capital		surplus		equity items			shares			earnings			Subtotal			interests			Total
Balance as of January 1, 2023	~~W~~	482,403		1,400,832		(443,990	)		(1,892,308	)		52,965,179			52,512,116			5,745,285			58,257,401
Comprehensive income:
Profit		—		—		—			—			1,698,092			1,698,092			147,758			1,845,850
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—		—			—			(83,148	)		(83,148	)		(35,400	)		(118,548	)
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—		225,591			—			—			225,591			11,014			236,605
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax		—		—		257,122			—			603			257,725			—			257,725
Foreign currency translation differences, net of tax		—		—		34,118			—			—			34,118			76,433			110,551
Gains or losses on valuation of derivatives, net of tax		—		—		(641	)		—			—			(641	)		(651	)		(1,292	)
Total comprehensive income		—		—		516,190			—			1,615,547			2,131,737			199,154			2,330,891
Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—		—			—			(151,698	)		(151,698	)		(94,690	)		(246,388	)
Interim dividends		—		—		—			—			(569,072	)		(569,072	)		—			(569,072	)
Changes in subsidiaries		—		—		—			—			—			—			5,805			5,805
Changes in ownership interest in subsidiaries		—		250,363		—			—			—			250,363			12,383			262,746
Interest of hybrid bonds		—		—		—			—			—			—			(8,925	)		(8,925	)
Repayment of hybrid bonds		—		—		—			—			—			—			(339,837	)		(339,837	)
Disposal of treasury shares		—		2,880		—			2,650			—			5,530			—			5,530
Share-based payment		—		6,783		—			—			—			6,783			17,324			24,107
Others		—		2,476		(4,944	)		—			(2,442	)		(4,910	)		(53,451	)		(58,361	)
Total transactions with owners of the controlling company		—		262,502		(4,944	)		2,650			(723,212	)		(463,004	)		(461,391	)		(924,395	)
Balance as of December 31, 2023	~~W~~	482,403		1,663,334		67,256			(1,889,658	)		53,857,514			54,180,849			5,483,048			59,663,897

(continued)

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2024 and 2023

(in millions of Won)	Attributable to owners of the controlling company																	Non-
	Share		Capital			Other			Treasury			Retained						controlling
	capital		surplus			equity items			shares			earnings			Subtotal			interests			Total
Balance as of January 1, 2024	~~W~~	482,403		1,663,334			67,256			(1,889,658	)		53,857,514			54,180,849			5,483,048			59,663,897
Comprehensive income:
Profit		—		—			—			—			1,094,917			1,094,917			(147,337	)		947,580
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(86,966	)		(86,966	)		(8,379	)		(95,345	)
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—			257,833			—			—			257,833			31,030			288,863
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax		—		—			(133,212	)		—			(11,838	)		(145,050	)		(5,392	)		(150,442	)
Foreign currency translation differences, net of tax		—		—			888,466			—			—			888,466			231,347			1,119,813
Gains or losses on valuation of derivatives, net of tax		—		—			(281	)		—			—			(281	)		171			(110	)
Total comprehensive income		—		—			1,012,806			—			996,113			2,008,919			101,440			2,110,359
Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,691	)		(189,691	)		(86,001	)		(275,692	)
Interim dividends		—		—			—			—			(568,433	)		(568,433	)		—			(568,433	)
Changes in subsidiaries		—		—			—			—			—			—			32,691			32,691
Changes in ownership interest in subsidiaries		—		(15,440	)		—			—			—			(15,440	)		477,608			462,168
Acquisition of treasury shares		—		—			—			(92,311	)		—			(92,311	)		—			(92,311	)
Retirement of treasury shares		—		—			—			431,107			(431,107	)		—			—			—
Share-based payment		—		(2,567	)		—			—			—			(2,567	)		—			(2,567	)
Others		—		3,567			75,367			—			(6,029	)		72,905			47,351			120,256
Total transactions with owners of the controlling company		—		(14,440	)		75,367			338,796			(1,195,260	)		(795,537	)		471,649			(323,888	)
Balance as of December 31, 2024	~~W~~	482,403		1,648,894			1,155,429			(1,550,862	)		53,658,367			55,394,231			6,056,137			61,450,368

The accompanying notes are an integral part of theconsolidated financial statements.

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Cash Flows

For the yearsended December 31, 2024 and 2023

(in millions of Won)		2024
Cash flows from operating activities
Profit		~~W~~	947,580		1,845,850
Adjustments for:
Depreciation			3,530,770		3,346,460
Amortization			453,689		498,193
Finance income			(3,476,227	)	(1,850,757	)
Finance costs			3,202,268		2,179,233
Income tax expense			303,623		789,305
Impairment loss on property, plant and equipment			608,122		275,846
Gain on disposal of property, plant and equipment			(26,533	)	(9,387	)
Loss on disposal of property, plant and equipment			85,149		125,823
Impairment loss on goodwill and other intangible assets			47,993		129,907
Gain on disposal of investments in subsidiaries, associates and joint ventures			(14,235	)	(197,088	)
Loss on disposal of investments in subsidiaries, associates and joint ventures			73,428		18,843
Share of loss on (profit of) equity-accounted investees			256,458		(269,678	)
Gain on disposal of assets held for sale			(4,801	)	(1,312	)
Loss on disposal of assets held for sale			33,943		103,365
Expenses related to post-employment benefit			246,484		206,613
Impairment loss on trade and other receivables			185,129		265,914
Loss on valuation of inventories			77,832		309,317
Increase to provisions			217,174		160,880
Gain on insurance claim			(157,552	)	(7,682	)
Others, net			3,227		(43,813	)
			5,645,941		6,029,982
Changes in operating assets and liabilities	39		336,868		(1,087,257	)
Interest received			570,769		447,621
Interest paid			(1,028,654	)	(1,038,005	)
Dividends received			744,857		696,941
Income taxes paid			(553,706	)	(727,437	)
Net cash provided by operating activities		~~W~~	6,663,655		6,167,695

(continued)

POSCO HOLDINGS INC. and its Subsidiaries

Consolidated Statements of Cash Flows, Continued

Forthe years ended December 31, 2024 and 2023

(in millions of Won)		2024
Cash flows from investing activities
Acquisitions of short-term financial instruments		~~W~~	(15,835,323	)	(39,830,719	)
Proceeds from disposal of short-term financial instruments			19,501,852		40,174,440
Increase in loans			(820,248	)	(1,238,668	)
Collection of loans			784,616		1,369,763
Acquisitions of securities			(1,144,352	)	(380,744	)
Proceeds from disposal of securities			1,210,011		142,791
Acquisitions of long-term financial instruments			(3,791	)	(5,362	)
Acquisitions of investment in associates and joint ventures			(301,816	)	(417,603	)
Proceeds from disposal of investment in associates and joint ventures			45,185		142,316
Acquisitions of investment property			(3,883	)	(56,043	)
Proceeds from disposal of investment property			418		707
Acquisitions of property, plant and equipment			(7,669,700	)	(6,733,289	)
Proceeds from disposal of property, plant and equipment			44,189		(11,895	)
Acquisitions of intangible assets			(492,785	)	(481,882	)
Proceeds from disposal of intangible assets			11,711		30,328
Proceeds from disposal of assets held for sale			10,307		4,850
Collection of lease receivables			31,136		52,657
Cash outflows due to business combinations, net of cash acquired			—		(150,201	)
Cash inflow from insurance claim			157,278		7,682
Others, net			(11,588	)	(7,352	)
Net cash used in investing activities		~~W~~	(4,486,783	)	(7,388,224	)
Cash flows from financing activities
Proceeds from borrowings			5,899,541		7,817,217
Repayment of borrowings			(7,532,911	)	(4,461,114	)
Repayment of short-term borrowings, net			(217,759	)	(2,524,077	)
Capital contribution from non-controlling interests			513,710		299,342
Payment of cash dividends			(844,195	)	(815,451	)
Acquisition of treasury shares			(92,311	)	—
Repayment of hybrid bonds			—		(340,000	)
Payment of interest of hybrid bonds			—		(10,043	)
Repayment of lease liabilities			(195,367	)	(222,829	)
Others, net			167,559		78,362
Net cash used in financing activities	39	~~W~~	(2,301,733	)	(178,593	)
Effect of exchange rate fluctuation on cash held			221,880		16,719
Net increase (decrease) in cash and cash equivalents			97,019		(1,382,403	)
Cash and cash equivalents at beginning of the period	5,10		6,670,879		8,053,282
Cash and cash equivalents at end of the period	5,10	~~W~~	6,767,898		6,670,879

The accompanying notes are an integral part of theconsolidated financial statements.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements

As ofDecember 31, 2024 and 2023

1. General Information

General information about POSCO HOLDINGS INC. (the “Company”), the controlling company, and its subsidiaries in the scope of consolidation, such as 57 domestic subsidiaries including POSCO and 136 foreign subsidiaries including POSCO America Corporation, and 119 associates and joint ventures (collectively referred to as the “Group”) in accordance with KIFRS 1110 is as follows:

(a)	The controlling company

POSCO HOLDINGS INC., the controlling company, was established on April 1, 1968, under the Commercial Code 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 December 31, 2024, POSCO HOLDINGS INC.’s shareholders are as follows:

Shareholder’s name	Number of shares
National Pension Service		6,160,584	7.46
BlackRock Fund Advisors(*1)		4,206,522	5.09
CITIBANK.N.A		3,287,254	3.98
Pohang University of Science and Technology		1,981,047	2.4
Samsung Group		1,599,070	1.94
Others		65,389,900	79.13
		82,624,377	100.00
(*1)	Includes shares held by subsidiaries and others.
---	---

As of December 31, 2024, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchange.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(b)	Consolidated subsidiaries

Details of consolidated subsidiaries as of December 31, 2024 and 2023 are as follows:

		Ownership (%)
		December 31, 2024						December 31, 2023
	Principal operations	POSCO<br>HOLDINGS		Subsidiaries		Total		POSCO<br>HOLDINGS		Subsidiaries		Total		Region
[Domestic]
POSCO	Steel, rolled products and plates		100.00		—		100.00		100.00		—		100.00	Pohang
POSCO Eco & Challenge Co., Ltd.	Engineering and construction		52.80		—		52.80		52.80		—		52.80	Pohang
POSCO STEELEON Co., Ltd.	Coated steel manufacturing		—		56.96		56.96		—		56.96		56.96	Pohang
POSCO DX	Computer hardware and software distribution		65.47		—		65.47		65.38		—		65.38	Pohang
POSCO Research Institute	Economic research and consulting		100.00		—		100.00		100.00		—		100.00	Seoul
POSCO WIDE Co., Ltd.	Business facility maintenance		100.00		—		100.00		100.00		—		100.00	Seoul
POSCO A&C	Architecture and consulting		—		100.00		100.00		—		100.00		100.00	Seoul
POSCO Venture Capital Co., Ltd.	Investment in venture companies		100.00		—		100.00		100.00		—		100.00	Pohang
eNtoB Corporation	Electronic commerce		—		69.32		69.32		—		69.32		69.32	Seoul
POSCO FUTURE M CO.,LTD.	Refractories, Anode/Cathode materials manufacturing and sales		59.74		—		59.74		59.75		—		59.75	Pohang
POSCO FLOW Co., Ltd.	Transporting and warehousing		100.00		—		100.00		100.00		—		100.00	Gwangyang
POSCO M-TECH	Packing materials manufacturing and sales		—		48.85		48.85		—		48.94		48.94	Pohang
PNR	Steel by product manufacturing and sales		—		70.00		70.00		—		70.00		70.00	Pohang
POSCO WOMAN’S FUND	Investment in venture companies		—		40.00		40.00		—		40.00		40.00	Seoul
POSCO Group University	Education service and real estate business		100.00		—		100.00		100.00		—		100.00	Incheon
Growth Ladder POSCO K-Growth Global Fund	Investment in venture companies		—		50.00		50.00		—		50.00		50.00	Pohang
POSCO IH	Intellectual Property Services and consulting		100.00		—		100.00		100.00		—		100.00	Seoul
TANCHEON E&E	Refuse derived fuel and power generation		—		100.00		100.00		—		100.00		100.00	Seoul
POSCO Humans	Business assistance service		—		100.00		100.00		—		100.00		100.00	Pohang
Mapo Hibroad Parking Co., Ltd.	Construction		—		71.00		71.00		—		71.00		71.00	Seoul
Busan E&E Co., Ltd.	Refuse derived fuel and power generation		70.00		—		70.00		70.00		—		70.00	Busan
POSCO INTERNATIONAL Corporation	Trading, power generation, energy & resource development and others		72.98		—		72.98		73.21		—		73.21	Seoul
Pohang Scrap Recycling Distribution Center Co., Ltd.	Steel processing and sales		—		51.00		51.00		—		51.00		51.00	Pohang
Songdo Development PMC (Project Management Company) LLC.	Housing business agency		—		100.00		100.00		—		100.00		100.00	Incheon
Korea Fuel Cell	Fuel cell		—		100.00		100.00		—		100.00		100.00	Pohang
POSCO GEM 1^st^ Fund	Investment in venture companies		98.81		1.19		100.00		98.81		1.19		100.00	Pohang
POSCO MOBILITY SOLUTION	STC, TMC, Plate manufacturing and sales		—		100.00		100.00		—		100.00		100.00	Cheonan
P&O Chemical Co., Ltd.	Chemical production		—		—		—		—		51.00		51.00	Gwangyang
Posco New Growth	Investment in venture companies		99.89		0.11		100.00		99.86		0.14		100.00	Seoul
IMP Fund I	Investment in venture companies		98.05		—		98.05		98.04		—		98.04	Pohang
POSCO-Pilbara LITHIUM SOLUTION Co., Ltd.	Lithium manufacturing and sales		82.00		—		82.00		82.00		—		82.00	Gwangyang
POSCO-HY Clean Metal Co., Ltd.	Non-ferrous metal smelting		—		75.00		75.00		—		65.00		65.00	Gwangyang
Consus Pf Private Real Estate Fund	REITs		—		66.67		66.67		—		66.67		66.67	—
New Energy Hub	Electricity and gas supply		—		100.00		100.00		—		100.00		100.00	Gwangyang
Posco Busan Newdeal Fund	Investment in venture companies		—		32.00		32.00		—		32.00		32.00	Pohang
Shinan Green Energy Co., LTD	Electricity production		—		54.53		54.53		—		54.53		54.53	Shinahn
eSteel4U	Wholesales and retail		—		61.12		61.12		—		61.12		61.12	Seoul
POSCO Social Investment Fund	Investment in venture companies		20.00		50.00		70.00		20.00		50.00		70.00	Pohang
POSCO Silicon Solution Co., Ltd	Other engineering R&D industries		100.00		—		100.00		100.00		—		100.00	Sejong
Consus Pf Private Real Estate Fund No.2	Real estate development		—		66.67		66.67		—		66.67		66.67	—
POSCO GS Eco Materials Co., Ltd	Rechargeable battery		51.00		—		51.00		51.00		—		51.00	Seoul
POSCO Lithium Solution Co., Ltd.	Lithium manufacturing and sales		100.00		—		100.00		100.00		—		100.00	Gwangyang
QSONE Co.,Ltd.	Real estate rental		100.00		—		100.00		100.00		—		100.00	Seoul
POSCO PS Tech	Maintenance service		—		100.00		100.00		—		100.00		100.00	Pohang
POSCO PR Tech	Maintenance service		—		100.00		100.00		—		100.00		100.00	Pohang
POSCO PH Solution	Maintenance service		—		100.00		100.00		—		100.00		100.00	Pohang
POSCO GYS Tech	Maintenance service		—		100.00		100.00		—		100.00		100.00	Gwangyang
POSCO GYR Tech	Maintenance service		—		100.00		100.00		—		100.00		100.00	Gwangyang
POSCO GY Solution	Maintenance service		—		100.00		100.00		—		100.00		100.00	Gwangyang
PCC Facilities Component Fund	Investment Association		—		60.00		60.00		—		60.00		60.00	Pohang
POSCO HOLDINGS CVC 2nd Fund	Investment in new technologies business		98.76		1.24		100.00		98.80		1.20		100.00	Pohang
International Energy Expansion for Technology Innovation Fund	Investment in new technologies business		—		60.00		60.00		—		60.00		60.00	Pohang
POSCO CNGR Nickel Solution	High-Purity nickel manufacturing and sales		60.00		—		60.00		—		—		—	Pohang
POSCO CVC Scale-Up Fund	Investment in venture companies		—		60.00		60.00		—		—		—	Pohang
SK SOLRA POWER GENERATION COPORATION	Power generation		—		100.00		100.00		—		—		—	Daegu
POSCO ZT AIR SOLUTION	High-Purity rare gas manufacturing and sales		75.10		—		75.10		—		—		—	Gwangyang
RNR logistics	Logistics and warehousing		—		100.00		100.00		—		—		—	Seoul
Mastern No.123 Yeoju Samgyo PFV CO., Ltd	Logistics and warehousing		—		100.00		100.00		—		—		—	Seoul
		Ownership (%)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		December 31, 2024						December 31, 2023
	Principal operations	POSCO<br>HOLDINGS		Subsidiaries		Total		POSCO<br>HOLDINGS		Subsidiaries		Total		Region
[Foreign]
POSCO America Corporation	Research&Consulting		99.45		0.54		99.99		99.45		0.54		99.99	USA
POSCO AUSTRALIA PTY LTD	Raw material sales & mine development		100.00		—		100.00		100.00		—		100.00	Australia
POSCO Canada Ltd.	Coal sales		100.00		—		100.00		100.00		—		100.00	Canada
POSCO Asia Co., Ltd.	Finance		100.00		—		100.00		100.00		—		100.00	China
POSCO-CTPC Co., Ltd.	Steel manufacturing and sales		100.00		—		100.00		100.00		—		100.00	China
POSCO E&C Vietnam Co., Ltd.	Steel structure manufacturing and sales		—		100.00		100.00		—		100.00		100.00	Vietnam
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.	Stainless steel manufacturing and sales		58.60		23.88		82.48		58.60		23.88		82.48	China
POSCO (Thailand) Company Limited	Steel manufacturing and sales		—		100.00		100.00		—		100.00		100.00	Thailand
POSCO-MKPC SDN BHD	Steel manufacturing and sales		—		70.00		70.00		—		70.00		70.00	Malaysia
Qingdao Pohang Stainless Steel Co., Ltd.	Stainless steel manufacturing and sales		70.00		30.00		100.00		70.00		30.00		100.00	China
POSCO(Suzhou) Automotive Processing Center Co., Ltd.	Steel manufacturing and sales		90.00		10.00		100.00		90.00		10.00		100.00	China
POSCO-China Qingdao Processing Center Co.Ltd.	Steel manufacturing and sales		100.00		—		100.00		100.00		—		100.00	China
POS-ORE PTY LTD	Iron ore development and sales		—		100.00		100.00		—		100.00		100.00	Australia
POSCO-China Holding Corp.	Holding company		100.00		—		100.00		100.00		—		100.00	China
POSCO JAPAN Co., Ltd.	Steel Marketing, demand development and technology research		100.00		—		100.00		100.00		—		100.00	Japan
POS-GC PTY LTD	Coal sales		—		100.00		100.00		—		100.00		100.00	Australia

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

		Ownership (%)
		December 31, 2024			December 31, 2023
	Principal operations	POSCO<br><br><br>HOLDINGS	Subsidiaries	Total	POSCO<br><br><br>HOLDINGS	Subsidiaries	Total	Region
[Foreign]
POSCO-India Private Limited	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	India
POSCO-India Pune Processing Center. Pvt. Ltd.	Steel manufacturing and sales	—	65.00	65.00	65.00	—	65.00	India
POSCO Japan PC CO.,LTD	Steel manufacturing and sales	—	86.12	86.12	—	86.12	86.12	Japan
POSCO-CFPC Co., Ltd.	Steel manufacturing and sales	44.66	55.34	100.00	44.66	55.34	100.00	China
POSCO E&C CHINA Co., Ltd.	Civil engineering and construction	—	100.00	100.00	—	100.00	100.00	China
POSCO MPPC S.A. de C.V.	Steel manufacturing and sales	21.02	75.29	96.31	21.02	75.29	96.31	Mexico
Zhangjigang Pohang Port Co., Ltd.	Loading and unloading service	—	100.00	100.00	—	100.00	100.00	China
POSCO-VIETNAM Co., Ltd.	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	Vietnam
POSCO MEXICO S.A. DE C.V.	Automotive steel sheet manufacturing and sales	—	98.16	98.16	—	98.16	98.16	Mexico
POSCO-Poland Wroclaw Processing Center<br>Sp. z o. o.	Steel manufacturing and sales	—	60.00	60.00	—	60.00	60.00	Poland
POS-NP PTY LTD	Coal sales	—	100.00	100.00	—	100.00	100.00	Australia
DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD	Intermediary trade & bonded warehouse operation	—	100.00	100.00	—	100.00	100.00	China
PT. Bio Inti Agrindo	Forest resources development	—	85.00	85.00	—	85.00	85.00	Indonesia
POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA (POSCO E&C AUSTRALIA) PTY LTD	Construction and engineering service	—	100.00	100.00	—	100.00	100.00	Australia
POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd.	Steel manufacturing and sales	50.00	10.00	60.00	50.00	10.00	60.00	China
POSCO Thainox Public Company Limited	STS cold-rolled steel manufacturing and sales	—	74.56	74.56	—	74.56	74.56	Thailand
HUNCHUN POSCO HMM INTERNATIONAL LOGISTICS CO., LTD.	Logistics	—	81.55	81.55	—	81.55	81.55	China
POSCO INTERNATIONAL VIETNAM CO., LTD	Trading business	—	100.00	100.00	—	100.00	100.00	Vietnam
POSCO(Chongqing) Automotive Processing Center Co., Ltd.	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	China
SUZHOU POSCO-CORE TECHNOLOGY CO., LTD.	Component manufacturing and sales	—	100.00	100.00	—	100.00	100.00	China
PT.KRAKATAU POSCO FUTUREM	Quicklime manufacturing and sales	—	80.00	80.00	—	80.00	80.00	Indonesia
POSCO AFRICA (PROPRIETARY) LIMITED	Mine development	100.00	—	100.00	100.00	—	100.00	South Africa
POSCO Center Beijing	Real estate development, rental and management	—	100.00	100.00	—	100.00	100.00	China
POSCO-Malaysia SDN. BHD.	Steel manufacturing and sales	—	95.42	95.42	—	95.42	95.42	Malaysia
PT KRAKATAU BLUE WATER	Wastewater treatment facilities operation and maintenance	—	67.00	67.00	—	67.00	67.00	Indonesia
POSCO INTERNATIONAL MYANMAR CO.,LTD.	Trading business	—	100.00	100.00	—	100.00	100.00	Myanmar
POSCO-Italy Processing Center	Stainless steel sheet manufacturing and sales	88.89	11.11	100.00	88.89	11.11	100.00	Italy
Myanmar POSCO C&C Company,Limited.	Steel manufacturing and sales	—	70.00	70.00	—	70.00	70.00	Myanmar
POSCO DX VIETNAM	IT service and electric control engineering	—	100.00	100.00	—	100.00	100.00	Vietnam
POSCO INTERNATIONAL GLOBAL DEVELOPMENT PTE.LTD.	Real estate development	—	75.00	75.00	—	75.00	75.00	Singapore
Myanmar POSCO Engineering & Construction Company, Limited.	Construction and engineering service	—	—	—	—	100.00	100.00	Myanmar
POS-Minerals Corporation	Mine development management and sales	—	100.00	100.00	—	100.00	100.00	USA
POSCO(Wuhu) Automotive Processing Center Co., Ltd.	Steel manufacturing and sales	68.57	31.43	100.00	68.57	31.43	100.00	China
POSCO Engineering and Construction India Private Limited	Civil engineering and construction	—	100.00	100.00	—	100.00	100.00	India
POSCO COATED STEEL (THAILAND) CO., LTD.	Vehicle steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	Thailand
POSCO INTERNATIONAL AMARA Co., Ltd.	Real estate development	—	85.00	85.00	—	85.00	85.00	Myanmar
POSCO WIDE-CHINA CO., LTD	Business facility maintenance	—	—	—	—	100.00	100.00	China
POSCO-Mexico Villagran Wire-rod Processing Center	Steel manufacturing and sales	—	66.75	66.75	—	66.75	66.75	Mexico
POSCO ChengDu Processing Center	Steel manufacturing and sales	—	43.00	43.00	—	43.00	43.00	China
POSCO(Suzhou) Steel Processing Center CO., LTD.	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	China
POSCO E&C SMART S DE RL DE CV	Civil engineering and construction	—	100.00	100.00	—	100.00	100.00	Mexico
POSCO Philippine Manila Processing Center, Inc.	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	Philippines
POSCO E&C HOLDINGS CO.,Ltd.	Holding company	—	100.00	100.00	—	100.00	100.00	Thailand
POSCO INTERNATIONAL POWER (PNGLAE) LTD.	Electricity production	—	—	—	—	100.00	100.00	Papua New Guinea
PT.KRAKATAU POSCO SOCIAL ENTERPRISE SERVICES INDONESIA	Social enterprise	—	99.91	99.91	—	99.91	99.91	Indonesia
Ventanas Philippines Construction Inc	Construction	—	100.00	100.00	—	100.00	100.00	Philippines
SANPU TRADING Co., Ltd.	Raw material trading	—	70.04	70.04	—	70.04	70.04	China
Zhangjiagang BLZ Pohang International Trading	Steel Intermediate trade	—	100.00	100.00	—	100.00	100.00	China
POSCO RU Limited Liability Company	Trade and business development	100.00	—	100.00	100.00	—	100.00	Russia
GOLDEN LACE POSCO INTERNATIONAL CO., LTD.	Rice processing	—	60.00	60.00	—	60.00	60.00	Myanmar
POSCO DX China CO.,LTD	IT service and DVR business	—	100.00	100.00	—	100.00	100.00	China
Pos-Sea Pte Ltd	Steel Intermediate trade	—	100.00	100.00	—	100.00	100.00	Singapore
POSCO Europe Steel Distribution Center	Logistics & Steel sales	—	90.00	90.00	—	70.00	70.00	Slovenia
POSCO ENGINEERING (THAILAND) CO., LTD.	Construction and engineering service	—	100.00	100.00	—	100.00	100.00	Thailand
POSCO VST CO., LTD.	Stainless steel sheet manufacturing and sales	95.65	—	95.65	95.65	—	95.65	Vietnam
POSCO INTERNATIONAL UKRAINE, LLC.	Grain sales	—	100.00	100.00	—	100.00	100.00	Ukraine
Zhangjiagang Pohang Refractories Co., Ltd.	Refractory materials sales & furnace maintenance	—	51.00	51.00	—	51.00	51.00	China
POSCO Maharashtra Steel Private Limited	Steel manufacturing and sales	—	100.00	100.00	100.00	—	100.00	India
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED	Steel manufacturing and sales	—	95.32	95.32	93.34	1.98	95.32	India
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	Turkiye
POSCO Vietnam Processing Center Joint Stock Company	Steel manufacturing and sales	84.04	15.96	100.00	84.04	15.96	100.00	Vietnam
POSCO(Liaoning) Automotive Processing Center Co., Ltd.	Steel manufacturing and sales	90.00	10.00	100.00	90.00	10.00	100.00	China
POSCO-Indonesia Jakarta Processing Center	Steel manufacturing and sales	—	92.20	92.20	—	92.20	92.20	Indonesia
PT.MOTTA RESOURCES INDONESIA	Mine development	65.00	—	65.00	65.00	—	65.00	Indonesia
POSCO TMC INDIA PRIVATE LIMITED	Steel manufacturing and sales	—	100.00	100.00	—	100.00	100.00	India
POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD.	Steel manufacturing and sales	—	97.80	97.80	—	97.80	97.80	USA
POSCO(Yantai) Automotive Processing Center Co., Ltd.	Steel manufacturing and sales	90.00	10.00	100.00	90.00	10.00	100.00	China

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

		Ownership (%)
		December 31, 2024			December 31, 2023
	Principal operations	POSCO<br><br><br>HOLDINGS	Subsidiaries	Total	POSCO<br><br><br>HOLDINGS	Subsidiaries	Total	Region
[Foreign]
POSCO India Steel Distribution Center Private Ltd.	Steel logistics	—	100.00	100.00	—	100.00	100.00	India
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY	Steel manufacturing and sales	—	51.00	51.00	—	51.00	51.00	Vietnam
PT.POSCO DX INDONESIA	IT service and electric control engineering	—	66.99	66.99	—	66.99	66.99	Indonesia
POSCO NCR Coal Ltd.	Coal sales	—	100.00	100.00	—	100.00	100.00	Canada
POSCO WA PTY LTD	Iron ore sales & mine development	100.00	—	100.00	100.00	—	100.00	Australia
POSCO AUSTRALIA GP PTY LIMITED	Resource development	—	100.00	100.00	—	100.00	100.00	Australia
PT. KRAKATAU POSCO ENERGY	Electricity production construction and operation	—	55.00	55.00	—	55.00	55.00	Indonesia
POSCO INTERNATIONAL AMERICA CORP.	Trading business	—	100.00	100.00	—	100.00	100.00	USA
POSCO INTERNATIONAL Deutschland GMBH	Trading business	—	100.00	100.00	—	100.00	100.00	Germany
POSCO INTERNATIONAL JAPAN CORP.	Trading business	—	100.00	100.00	—	100.00	100.00	Japan
POSCO INTERNATIONAL SINGAPORE PTE. LTD.	Trading business	—	100.00	100.00	—	100.00	100.00	Singapore
POSCO INTERNATIONAL ITALIA S.R.L.	Trading business	—	100.00	100.00	—	100.00	100.00	Italy
POSCO INTERNATIONAL (CHINA) CO., LTD	Trading business	—	100.00	100.00	—	100.00	100.00	China
POSCO INTERNATIONAL TEXTILE LLC.	Textile manufacturing	—	100.00	100.00	—	100.00	100.00	Uzbekistan
POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY. LTD.	Resource development	—	100.00	100.00	—	100.00	100.00	Australia
POSCO MAURITIUS LIMITED	Coal development and sales	—	100.00	100.00	—	100.00	100.00	Mauritius
PT. KRAKATAU POSCO	Steel manufacturing and sales	—	50.00	50.00	—	50.00	50.00	Indonesia
POSCO INTERNATIONAL MEXICO, S.A de C.V.	Trading business	—	100.00	100.00	—	100.00	100.00	Mexico
POSCO INTERNATIONAL MALAYSIA SDN BHD	Trading business	—	100.00	100.00	—	100.00	100.00	Malaysia
PT.POSCO INDONESIA INTI	Consulting	100.00	—	100.00	100.00	—	100.00	Indonesia
POSCO INTERNATIONAL SHANGHAI CO., LTD.	Trading business	—	100.00	100.00	—	100.00	100.00	China
POSCO INTERNATIONAL INDIA PVT., LTD	Trading business	—	100.00	100.00	—	100.00	100.00	India
POSCO(Dalian) IT Center Development Co., Ltd.	Real estate development and investment	—	—	—	—	100.00	100.00	China
PT. POSCO E&C INDONESIA	Civil engineering and construction	—	100.00	100.00	—	100.00	100.00	Indonesia
HUME COAL PTY LTD	Raw material manufacturing	—	100.00	100.00	—	100.00	100.00	Australia
Brazil Sao Paulo Steel Processing Center	Steel manufacturing and sales	—	76.00	76.00	—	76.00	76.00	Brazil
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA.	Construction	—	100.00	100.00	—	100.00	100.00	Brazil
POSCO ASSAN TST STEEL INDUSTRY Inc	Steel manufacturing and sales	—	70.00	70.00	60.00	10.00	70.00	Turkiye
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd.	Real estate development and investment	—	100.00	100.00	—	100.00	100.00	Hongkong
JB CLARK HILLS	Apartment construction	—	70.00	70.00	—	70.00	70.00	Philippines
POS-LT Pty Ltd	Lithium mining investment	—	100.00	100.00	—	100.00	100.00	Australia
ZHEJIANG POSCO-HUAYOU ESM CO., LTD	Anode material manufacturing	14.67	45.33	60.00	14.67	45.33	60.00	China
POSCO Argentina S.A.U.	Mineral exploration/manufacturing/sales	100.00	—	100.00	100.00	—	100.00	Argentina
GRAIN TERMINAL HOLDING PTE. LTD.	Trading business	—	75.00	75.00	—	75.00	75.00	Singapore
Mykolaiv Milling Works PJSC.	Grain trading	—	100.00	100.00	—	100.00	100.00	Ukraine
Yuzhnaya Stevedoring Company Limited LLC.	Cargo handling	—	100.00	100.00	—	100.00	100.00	Ukraine
Posco International (Thailand) Co., Ltd.	Trade	—	100.00	100.00	—	100.00	100.00	Thailand
PT POSCO INTERNATIONAL INDONESIA	Trade	—	100.00	100.00	—	100.00	100.00	Indonesia
PEC POWERCON SDN. BHD.	Construction and engineering service	—	100.00	100.00	—	100.00	100.00	Malaysia
Poland Legnica Sourcing Center Sp. z o.o	Non-ferrous metal Smetling	100.00	—	100.00	100.00	—	100.00	Poland
POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD.	Extraction of Crude petroleum and Natural gas	—	100.00	100.00	—	100.00	100.00	Malaysia
AGPA PTE. LTD.	Holding company	—	100.00	100.00	—	100.00	100.00	Singapore
Senex Holdings PTY LTD(*1)	Resource Development	—	50.10	50.10	—	50.10	50.10	Australia
Posco International Mexico e-Mobility S.A DE C.V.	Electric Vehicle Parts Manufacturing	—	100.00	100.00	—	100.00	100.00	Mexico
Posco Future Materials Canada Inc.	Holding company	—	100.00	100.00	—	100.00	100.00	Canada
ULTIUM CAM GP INC.	Holding company	—	85.00	85.00	—	85.00	85.00	Canada
ULTIUM CAM LIMITED PARTNERSHIP	Anode material manufacturing	—	85.00	85.00	—	85.00	85.00	Canada
POSCO(Wuhan) Automotive Processing Center Co.,Ltd	Steel manufacturing and sales	68.57	31.43	100.00	68.57	31.43	100.00	China
POSCO BRAZIL LTDA	Office Administration, Management Consulting	—	100.00	100.00	—	100.00	100.00	Brazil
Port Hedland Green Steel Pty Ltd	Iron and steel manufacturing	—	100.00	100.00	—	100.00	100.00	Australia
PT AGPA REFINERY COMPLEX	Animal/vegetable oil manufacturing	—	60.00	60.00	—	60.00	60.00	Indonesia
POSCO MOBILITY SOLUTION POLAND Sp. z o.o.,	Manufacturing, automobile motor parts	—	100.00	100.00	—	100.00	100.00	Poland
PT POSCO INTERNATIONAL ENP INDONESIA	Crude oil and natural gas	—	100.00	100.00	—	100.00	100.00	Indonesia
POSCO INTERNATIONAL E&P USA Inc.	Carbon capture and storage, resource development	—	100.00	100.00	—	100.00	100.00	USA
POSCO FLOW CANADA INC.	Transporting and warehousing	—	100.00	100.00	—	100.00	100.00	Canada
POSCO FLOW (Shanghai) Co.,Ltd	Transporting	—	100.00	100.00	—	100.00	100.00	China
POSCO (BEIJING) Trading Co., Ltd.	Trade	—	100.00	100.00	—	—	—	China
(*1)	Senex Holdings PTY LTD includes 19 subsidiaries including Senex Energy Limited.
---	---

The controlling company’s interests in the subsidiaries decreased by ~~W~~15,440 million (POSCO HY Clean Metal Co., Ltd. and others) and increased by ~~W~~250,363 million (POSCO INTERNATIONAL Corporation and others) in 2024 and 2023, respectively, as a result of changes in the Company’s ownership interest in subsidiaries that did not result in a loss of control.

POSCO HOLDINGS INC. received dividends of ~~W~~1,403,415 million and ~~W~~441,113 million from its subsidiaries in aggregate in 2024 and 2023, respectively.

As of December 31, 2024, there are no significant restrictions on the ability of subsidiaries to transfer funds to the controlling company, such as in the form of cash dividends, repayment of loans or payment of advances.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(c)	Summarized financial information of principal subsidiaries as of and for the years ended December 31, 2024<br>and 2023 are as follows:

1) As of and for the year ended December 31, 2024

(in millions of Won)
Company	Assets		Liabilities		Equity		Sales		Net income<br>(loss)
[Domestic]
POSCO		45,681,401		12,574,873		33,106,528		37,556,523		901,542
POSCO Eco & Challenge Co., Ltd.		7,370,054		3,940,069		3,429,985		9,161,904		36,177
POSCO STEELEON Co., Ltd.		530,860		154,751		376,108		1,175,769		32,358
POSCO DX		871,043		356,499		514,543		1,440,386		86,759
eNtoB Corporation		186,221		116,120		70,101		1,018,894		4,683
POSCO FUTURE M CO.,LTD.		6,765,713		3,980,328		2,785,385		3,608,988		(222,038	)
POSCO M-TECH		149,758		37,945		111,813		346,628		568
POSCO INTERNATIONAL Corporation		12,692,301		6,981,884		5,710,417		27,388,739		510,930
POSCO MOBILITY SOLUTION		957,411		406,888		550,523		1,179,247		(35,088	)
POSCO-Pilbara LITHIUM SOLUTION Co., Ltd.		1,254,635		1,038,612		216,023		30,237		(122,852	)
QSONE Co.,Ltd.		232,238		44,188		188,050		23,087		8,852
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---
										Net income
Company	Assets		Liabilities		Equity			Sales		(loss)
[Foreign]
POSCO America Corporation		182,232		8,496		173,737			13,260		6,839
POSCO AUSTRALIA PTY LTD(*1)		1,030,657		72,827		957,831			147,136		80,352
POSCO Asia Co., Ltd.		917,019		621,154		295,864			64,318		(8,867	)
POSCO-CTPC Co., Ltd.		108,172		47,479		60,692			264,923		—
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.		1,047,884		654,532		393,352			3,042,140		(129,933	)
POSCO (Thailand) Company Limited		197,326		77,129		120,197			407,074		2,400
Qingdao Pohang Stainless Steel Co., Ltd.		135,759		33,597		102,162			211,357		(14,197	)
POSCO (Suzhou) Automotive Processing Center Co., Ltd.		441,569		252,305		189,265			783,814		(2,773	)
POSCO-China Holding Corp.		1,018,689		512,006		506,683			20,500		(17,866	)
POSCO JAPAN Co., Ltd.		212,669		8,031		204,638			15,989		2,985
POSCO-India Pune Processing Center. Pvt. Ltd.		209,999		156,856		53,144			483,584		1,129
POSCO Japan PC CO.,LTD		352,915		262,886		90,028			615,346		6,430
POSCO-CFPC Co., Ltd.		331,811		257,870		73,941			980,637		(96	)
POSCO MPPC S.A. de C.V.		661,110		536,852		124,258			1,008,224		3,709
POSCO-VIETNAM Co., Ltd.		350,524		337,418		13,106			835,631		1,136
POSCO MEXICO S.A. DE C.V.		749,960		475,331		274,629			999,807		16,243
POSCO Thainox Public Company Limited		512,321		115,149		397,172			576,912		14,948
POSCO Center Beijing		457,044		253,675		203,369			32,514		1,065
POSCO COATED STEEL (THAILAND) CO., LTD.		324,391		228,055		96,336			402,981		(3,165	)
POSCO INTERNATIONAL AMARA Co., Ltd.		322,963		479,031		(156,068	)		43,629		(45,325	)
POSCO VST CO., LTD.		304,235		224,360		79,875			510,914		15,771
POSCO Maharashtra Steel Private Limited		1,471,597		695,297		776,300			1,785,238		180,957
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED		424,014		310,883		113,131			1,003,522		9,669
POSCO(Liaoning) Automotive Processing Center Co., Ltd.		89,444		31,260		58,184			209,207		2,339
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY		466,488		142,002		324,486			423,938		(24,091	)
PT. KRAKATAU POSCO ENERGY		296,566		89,437		207,130			34,777		12,578
POSCO INTERNATIONAL AMERICA CORP.		726,447		489,622		236,825			2,651,352		54,727
POSCO INTERNATIONAL Deutschland GMBH		503,928		488,965		14,963			1,099,624		(2,776	)
POSCO INTERNATIONAL JAPAN CORP.		998,144		821,148		176,996			2,966,044		21,235
POSCO INTERNATIONAL SINGAPORE PTE. LTD.		217,546		194,011		23,534			3,225,062		6,560
POSCO INTERNATIONAL ITALIA S.R.L.		291,810		271,429		20,381			862,642		2,321
PT. KRAKATAU POSCO(*1)		3,523,003		2,874,800		648,203			2,817,274		(168,700	)

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(in millions of Won)
									Net income
Company	Assets		Liabilities		Equity		Sales		(loss)
[Foreign]
POSCO ASSAN TST STEEL INDUSTRY Inc		568,566		568,513		53		503,646		(23,238	)
POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD.		204,257		192,542		11,715		347,192		(7,963	)
POSCO Argentina S.A.U.		2,786,535		1,260,950		1,525,585		3,203		(128,649	)
POSCO-MKPC SDN BHD		164,150		72,783		91,367		257,822		7,271
Senex Holdings PTY LTD(*1)		2,269,190		910,149		1,359,041		268,350		16,389
(*1)	Summarized financial information of POSCO AUSTRALIA PTY LTD, PT. KRAKATAU POSCO and Senex Holdings PTY LTD, a<br>subsidiary of POSCO HOLDINGS INC., are based on its consolidated financial information. The financial information of the other entities is based on separate financial statements of each entity.
---	---

2) As of and for the year ended December 31, 2023

(in millions of Won)
									Net income
Company	Assets		Liabilities		Equity		Sales		(loss)
[Domestic]
POSCO		45,825,529		12,716,600		33,108,929		38,971,567		1,179,665
POSCO Eco & Challenge Co., Ltd.		7,861,704		4,455,205		3,406,499		9,534,592		198,203
POSCO STEELEON Co., Ltd.		529,525		174,724		354,801		1,132,510		32,276
POSCO DX		871,343		418,446		452,897		1,445,326		88,527
eNtoB Corporation		164,228		97,127		67,101		1,110,222		8,491
POSCO FUTURE M CO.,LTD.		5,756,556		3,327,874		2,428,682		4,457,201		32,140
POSCO M-TECH		154,927		39,170		115,757		341,410		4,868
POSCO INTERNATIONAL Corporation		12,565,027		7,170,143		5,394,884		28,536,917		632,519
POSCO MOBILITY SOLUTION		1,036,342		448,319		588,023		1,432,416		(24,265	)
POSCO-Pilbara LITHIUM SOLUTION Co., Ltd.		898,301		558,449		339,852		4,673		(34,198	)
QSONE Co.,Ltd.(*1)		232,848		53,646		179,202		18,044		6,037

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(in millions of Won)
										Net income
Company	Assets		Liabilities		Equity			Sales		(loss)
[Foreign]
POSCO America Corporation		153,900		7,980		145,920			12,231		16,690
POSCO AUSTRALIA PTY LTD(*2)		1,322,381		133,612		1,188,769			224,985		152,896
POSCO Asia Co., Ltd.		1,130,637		862,642		267,995			83,539		16,275
POSCO-CTPC Co., Ltd.		113,805		59,166		54,639			250,167		1,093
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.		936,933		459,269		477,664			3,359,087		(169,873	)
POSCO (Thailand) Company Limited		185,280		82,456		102,824			440,532		(3,621	)
Qingdao Pohang Stainless Steel Co., Ltd.		128,820		23,453		105,367			296,883		(13,362	)
POSCO (Suzhou) Automotive Processing Center Co., Ltd.		371,734		198,451		173,283			729,700		6,364
POSCO-China Holding Corp.		986,501		515,610		470,891			31,329		(22,326	)
POSCO JAPAN Co., Ltd.		201,184		5,300		195,884			16,453		3,705
POSCO-India Pune Processing Center. Pvt. Ltd.		222,439		175,594		46,845			436,248		1,576
POSCO Japan PC CO.,LTD		335,780		254,557		81,223			623,375		9,079
POSCO-CFPC Co., Ltd.		296,489		229,961		66,528			843,934		1,900
POSCO MPPC S.A. de C.V.		521,303		415,819		105,484			934,346		(278	)
POSCO-VIETNAM Co., Ltd.		309,476		299,054		10,422			737,530		(5,594	)
POSCO MEXICO S.A. DE C.V.		726,121		500,597		225,524			846,600		(8,530	)
POSCO Thainox Public Company Limited		433,638		100,506		333,132			551,000		(4,170	)
POSCO Center Beijing		427,898		246,190		181,708			37,028		5,623
POSCO COATED STEEL (THAILAND) CO., LTD.		307,619		220,259		87,360			386,992		1,459
POSCO INTERNATIONAL AMARA Co., Ltd.		306,105		400,124		(94,019	)		33,288		(21,723	)
POSCO VST CO., LTD.		251,525		196,382		55,143			547,889		(36,723	)
POSCO Maharashtra Steel Private Limited		1,319,232		791,431		527,801			1,763,374		58,669
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED		344,678		251,870		92,808			896,860		13,268
POSCO Vietnam Processing Center. Co.,Ltd		238,694		127,038		111,656			577,064		7,003
POSCO(Liaoning) Automotive Processing Center Co., Ltd.		99,186		48,858		50,328			229,524		3,718
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY		434,496		127,087		307,409			395,261		8,993
PT. KRAKATAU POSCO ENERGY		263,986		94,202		169,784			34,158		13,895
POSCO INTERNATIONAL AMERICA CORP.		629,533		473,572		155,961			2,282,133		29,445
POSCO INTERNATIONAL Deutschland GMBH		400,762		384,113		16,649			946,974		3,413
POSCO INTERNATIONAL JAPAN CORP.		895,043		744,065		150,978			2,939,318		27,022
POSCO INTERNATIONAL SINGAPORE PTE. LTD.		294,527		280,090		14,437			3,025,822		7,452
POSCO INTERNATIONAL ITALIA S.R.L.		226,148		209,374		16,774			777,756		1,498
PT. KRAKATAU POSCO		3,475,929		2,747,948		727,981			3,130,551		65,827
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---
									Net income
Company	Assets		Liabilities		Equity		Sales		(loss)
[Foreign]
POSCO ASSAN TST STEEL INDUSTRY		471,071		456,913		14,158		416,096		(73,032	)
POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD.		152,896		135,087		17,809		251,884		(3,025	)
POSCO Argentina S.A.U.		1,658,879		542,525		1,116,354		—		(73,807	)
POSCO-MKPC SDN BHD		132,043		59,916		72,127		244,754		8,770
Senex Holdings PTY LTD(*2)		1,623,493		802,259		821,234		246,493		14,239
(*1)	The sales and net income occurred after the inclusion as a subsidiary.
---	---
(*2)	Summarized financial information of POSCO AUSTRALIA PTY LTD and Senex Holdings PTY LTD, a subsidiary of POSCO<br>HOLDINGS INC., are based on its consolidated financial information. The financial information of the other entities is based on separate financial statements of each entity.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(d)	Details of non-controlling interests by entity as of and for the years ended December 31, 2024 and 2023<br>are as follows:

1) As of and for the year ended December 31, 2024

(in millions of Won)
Current assets	8,268,175		2,112,748		5,217,785		676,688
Non-current assets	9,068,151		5,819,711		2,444,945		215,765
Current liabilities	6,659,697		1,570,070		3,342,723		355,027
Non-current liabilities	3,327,166		3,041,884		806,239		11,528
Equity	7,349,463		3,320,506		3,513,768		525,898
Non-controlling interests	1,089,512		700,123		1,498,967		169,964
Sales	32,340,793		3,699,944		9,468,701		1,473,291
Profit (loss) for the period	503,410		(231,338	)	50,986		88,599
Profit (loss) attributable to non-controlling interests	104,424		(78,781	)	39,225		29,331
Cash flows from operating activities	876,881		670,850		13,430		97,800
Cash flows from investing activities	(846,138	)	(1,810,360	)	(76,358	)	(12,603	)
Cash flows from financing activities	(176,074	)	1,375,379		(360,662	)	(17,219	)
Effect of exchange rate fluctuation on cash held	65,672		18,768		14,878		1,039
Net increase (decrease) in cash and cash equivalents	(79,659	)	235,869		(408,712	)	69,017

2) As of and for the year ended December 31, 2023

(in millions of Won)
Current assets	8,077,260		2,411,881		5,859,803		661,856
Non-current assets	8,540,488		3,922,712		2,335,886		227,952
Current liabilities	6,275,479		1,396,408		4,106,980		421,367
Non-current liabilities	3,717,507		2,326,719		610,218		6,991
Equity	6,624,762		2,611,466		3,478,491		461,449
Non-controlling interests	1,121,823		666,420		1,514,203		149,812
Sales	33,132,821		4,759,871		10,165,708		1,485,876
Profit for the period	680,419		4,435		176,618		92,128
Profit attributable to non-controlling interests	141,618		25,365		88,943		30,506
Cash flows from operating activities	1,076,436		(444,846	)	(294,596	)	21,821
Cash flows from investing activities	(27,128	)	(1,031,418	)	318,890		19,264
Cash flows from financing activities	(1,225,373	)	1,591,574		78,748		(12,975	)
Effect of exchange rate fluctuation on cash held	15,221,866		(7,111	)	1,444		39
Net increase (decrease) in cash and cash equivalents	(176,065	)	108,199		104,487		28,148

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(e)	Details of associates and joint ventures

1) Associates

Details of associates as of December 31, 2024 and 2023 are as follows:

		Ownership (%)
Investee	Category of business	2024		2023		Region
[Domestic]
New Songdo International City Development, LLC	Real estate rental		29.90		29.90	Incheon
Gale International Korea, LLC	Real estate rental		29.90		29.90	Incheon
KONES, Corp.	Technical service		27.41		27.41	Gyeongju
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd	Real estate development		29.53		29.53	Chungju
DAEHO GLOBAL MANAGEMENT CO., LTD.	Investment advisory service		35.82		35.82	Pohang
Gunggi Green Energy(*1)	Electricity generation		19.00		19.00	Hwaseong
Pohang Special Welding Co.,Ltd.	Welding material and tools manufacturing and sales		50.00		50.00	Pohang
EQP POSCO Global NO1 Natural Resources Private Equity Fund	Investment in new technologies		27.23		27.23	Seoul
KC Chemicals CORP.(*1)	Machinery manufacturing		18.76		18.76	Hwaseong
Chun-cheon Energy Co., Ltd	Electricity generation		49.10		49.10	Chuncheon
Noeul Green Energy(*1)	Electricity generation		10.00		10.00	Seoul
Posco-IDV Growth Ladder IP Fund(*1)	Investment in new technologies		17.86		17.86	Seoul
DaeSung SnM Co., Ltd.(*5)	Steel sales		—		17.54	Busan
Pohang E&E Co., LTD	Investment in waste energy		30.00		30.00	Pohang
POSCO Energy Valley Fund	Investment in new technologies		20.00		20.00	Pohang
Posco Agri-Food Export Fund(*4)	Investment in new technologies		—		30.00	Seoul
Posco Culture Contents Fund	Investment in new technologies		31.68		31.67	Seoul
PCC Amberstone Private Equity Fund 1(*1)	Investment in new technologies		8.80		8.80	Seoul
UITrans LRT Co., Ltd.	Transporting		38.19		38.19	Seoul
POSCO Advanced Technical Staff Fund(*1)	Investment in new technologies		15.87		15.87	Seoul
POSCO 4th Industrial Revolution Fund(*1)	Investment in new technologies		19.05		19.05	Seoul
Pureun Tongyeong Enviro Co., Ltd.	Sewerage treatment		20.40		20.40	Tongyeong
Pure Gimpo Co., Ltd.	Construction		28.79		28.79	Gimpo
Posgreen Co., Ltd.(*1)	Lime and plaster manufacturing		19.00		19.00	Gwangyang
Clean Iksan Co., Ltd.	Construction		23.50		23.50	Iksan
Innovalley Co., Ltd.	Real estate development		29.48		29.48	Yongin
BLUE OCEAN Private Equity Fund	Private equity financial		27.52		27.52	Seoul
Pocheon-Hwado Highway Corp.	Investment in Expressway		27.89		27.89	Incheon
INNOPOLIS Job Creation Fund II(*1)	Investment in new technologies		6.13		6.13	Seoul
Samcheok Blue Power Co.,Ltd.	Generation of electricity		34.00		34.00	Samcheok
INKOTECH, INC.(*1)	Electricity generation and sales		10.00		10.00	Seoul
PCC Social Enterprise Fund II(*1)	Investment in new technologies business		16.67		16.67	Seoul
PCC-Conar No.1 Fund(*1)	Investment in new technologies business		14.88		15.49	Pohang
HYOCHUN Co., Ltd(*1)	Screen door operation and other		18.00		18.00	Seoul
IBKC-PCC 1st Fund(*1)	Investment in new technologies business		18.18		18.18	Pohang
PCC-Woori LP secondary Fund(*1)	Investment in new technologies business		18.85		18.85	Pohang
Link City PFV Inc.	Contruction, housing construction and sales		44.00		44.00	Uijeongbu
BNH-POSCO Bio Healthcare Fund(*1)	Investment in new technologies business		18.14		18.14	Pohang
PCC-BM Project Fund(*1)	Investment in new technologies business		8.77		8.77	Pohang
Energy Innovation Fund I(*1)	Investment in new technologies business		10.11		10.11	Pohang
Consus PS development Professional Private Real Estate Fund	Real estate development		50.00		50.00	Seoul
POSTECH Holdings 4th Fund	Private Investment Association		40.00		40.00	Pohang
SNU STH IP Fund	Private Investment Association		33.33		33.33	Seoul
PCC-BM Project Fund 2(*4)	Investment in new technologies business		—		13.70	Pohang
G&G Technology Innovation Fund No.1(*1)	Investment in new technologies business		13.97		13.97	Seongnam
PCC-KAI Secondary I Fund(*1)	Investment in new technologies business		19.12		19.12	Seoul
2021 PCC Bio New Technology Fund(*1)	Investment in new technologies		5.45		5.45	Pohang
Consus BG Private Real Estate Fund No.2	Real estate development		50.00		50.00	Seoul
Consus NewDeal Infra Development Specialized Private Special Asset Investment Trust 1	Investment Association		40.00		40.00	Seoul
Hybrid ESG Secondary Venture No.1(*1)	Investment Association		18.27		18.27	Pohang
PCC-Bailey Project Fund(*1)	Investment in new technologies business		7.27		7.27	Pohang
CR Inotech Co., Ltd.(*1)	Manufacturing		19.00		19.00	Gwangyang
Posco JK Solid Solution Co., ltd.	Material manufacturing for rechargeable battery		40.00		40.00	Yangsan
PCC-Xinova PRE-IPO Fund(*1)	Investment in new technologies business		0.91		0.91	Pohang
Consus OS Private Real Estate Fund 2	Real estate development		50.00		50.00	Seoul
C&P Advanced Material Technology Co., Ltd.(*2)	Precursor manufacturing and sales		20.00		—	Pohang
P&O Chemical Co., Ltd(*3)	Chemical production		51.00		—	Gwangyang

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

		Ownership (%)
Investee	Category of business	2024		2023		Region
[Foreign]
POSCHROME (PROPRIETARY) LIMITED	Raw material manufacturing and sales		50.00		50.00	South Africa
CAML RESOURCES PTY LTD	Raw material manufacturing and sales		33.34		33.34	Australia
PT. Wampu Electric Power	Construction and civil engineering		20.00		20.00	Indonesia
POSK(Pinghu) Steel Processing Center Co., Ltd.	Steel processing and sales		20.00		20.00	China
PT.INDONESIA POS CHEMTECH CHOSUN Ref	Refractory manufacturing and sales		30.19		30.19	Indonesia
NS-Thainox Auto Co., Ltd.	Stainless sales and transporting		49.00		49.00	Thailand
PT. Tanggamus Electric Power(*1)	Construction and civil engineering		17.50		17.50	Indonesia
LLP POSUK Titanium	Titanium manufacturing and sales		35.30		35.30	Kazakhstan
IMFA ALLOYS FINLEASE LTD	Raw material manufacturing and sales		24.00		24.00	India
KRAKATAU POS-CHEM DONG-SUH CHEMICAL(*1)	Chemical by-product manufacturing and sales		19.00		19.00	Indonesia
9404-5515 Quebec Inc.	Investments management		25.85		25.85	Canada
Hamparan Mulya	Resource development		45.00		45.00	Indonesia
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd.	Steel manufacturing and sales		25.00		25.00	China
Eureka Moly LLC(*5)	Raw material manufacturing and sales		—		20.00	USA
KIRIN VIETNAM CO., LTD(*4)	Panel manufacturing		—		19.00	Vietnam
POSCO SeAH Steel Wire(Nantong) Co., Ltd.	Steel processing and sales		25.00		25.00	China
POS-SeAH Steel Wire (Thailand) Co., Ltd.	Steel manufacturing and sales		25.00		25.00	Thailand
Jupiter Mines Limited(*1)	Resource development		6.89		6.89	Australia
SAMHWAN VINA CO., LTD(*1)	Steel manufacturing and sales		17.26		17.26	Vietnam
Saudi-Korean Company for Maintenance Properties Management LLC(*1)	Building management		19.00		19.00	Saudi Arabia
NCR LLC	Coal sales		22.05		22.05	Canada
AMCI (WA) PTY LTD	Iron ore sales & mine development		49.00		49.00	Australia
SHANGHAI LANSHENG DAEWOO CORP.	Trading		49.00		49.00	China
SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD.	Trading		49.00		49.00	China
General Medicines Company Ltd.	Medicine manufacturing and sales		33.00		33.00	Sudan
KOREA LNG LTD.	Gas production and sales		20.00		20.00	England
AES-VCM Mong Duong Power Company Limited	Electricity generation		30.00		30.00	Vietnam
South-East Asia Gas Pipeline Company Ltd.	Pipeline construction and management		25.04		25.04	Myanmar
GLOBAL KOMSCO Daewoo LLC	Cotton celluloid manufacturing and sales		35.00		35.00	Uzbekistan
POSCO-Poggenamp Electrical Steel Pvt. Ltd.	Steel processing and sales		26.00		26.00	India
Qingdao Pohang DGENX Stainless SteelPipeCo., Ltd	Exhaust meter manufacturing		40.00		40.00	China
SHINPOONG DAEWOO PHARMA VIETNAM CO.,LTD(*1)	Medicine production		3.42		3.42	Vietnam
ZHEJIANG HUAYOU-POSCO ESM CO., LTD	Anode material Production		40.00		40.00	China
MONG DUONG FINANCE HOLDINGS B.V.	Financial Holdings		30.00		30.00	Netherlands
FQM Australia Holdings Pty Ltd	Non-ferrous metal Mining		24.32		24.32	Australia
Qingdao ZhongShou New Energy Technology Co.,Ltd(*1)	Artificial Graphite manufacturing		13.00		13.00	China
Black Rock Mining LTD(*1)	Mining		10.07		11.72	Australia
Inner Mongolia Sinuo New Material Technology Co.,Ltd(*1)	Artificial Graphite manufacturing		12.85		12.85	China
ZHANGJIAGANG XIAO-SHA COIL SERVICE CENTER CO.,LTD(*1)	Steel processing and sales		17.50		17.50	China
AJI Marketing and Sales, LLC(*2)	Coal sales		22.05		—	USA
(*1)	The Group has determined that it has significant influence even though the Group’s percentage of ownership<br>is less than 20% considering the composition of board of directors.
---	---
(*2)	During the year ended December 31, 2024, the entities were included as associates.
---	---
(*3)	During the year ended December 31, 2024, the entity was excluded from a subsidiary and classified as an<br>associate.
---	---
(*4)	During the year ended December 31, 2024, the entities were excluded from associates due to liquidation.<br>
---	---
(*5)	During the year ended December 31, 2024, the entities were excluded from associates due to sale of<br>interest.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

2) Joint ventures

Details of joint ventures as of December 31, 2024 and 2023 are as follows:

	Category of business	Ownership (%)
Investee		2024		2023		Region
[Domestic]
POSCO MC MATERIALS	Steel processing and sales		60.00		60.00		Gwangyang
POSCO-KB Shipbuilding Restructuring Fund	Investment in new technologies		18.75		18.75		Seoul
POSCO-NSC Venture Fund	Investment in new technologies		16.67		16.67		Seoul
PoscoPlutus Project 3rd Project fund	Investment in new technologies		5.96		5.96		Seoul
PCC Bio 2nd Fund	Investment in new technologies		19.72		19.72		Seoul
Union PCC Portfolio Fund	Investment in new technologies		14.12		14.12		Seoul
Eco Energy Solution Co., ltd.	Service		50.00		50.00		Seoul
FLOW K CO., Ltd.(*1)	Logistics and warehousing		40.00		—		Gwangyang
SNNC	Raw material manufacturing and sales		49.00		49.00		Gwangyang
[Foreign]
KOBRASCO	Steel materials manufacturing and sales		50.00		50.00		Brazil
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.	Steel processing and sales		25.00		25.00		China
POSCO-SAMSUNG-Slovakia Processing Center	Steel processing and sales		30.00		30.00		Slovakia
YULCHON MEXICO S.A. DE C.V.	Tube for automobile manufacturing		11.85		11.85		Mexico
Hyunson Engineering & Construction HYENCO	Construction		4.89		4.89		Algeria
POSCO E&C Saudi Arabia	Civil engineering and construction		40.00		40.00		Saudi Arabia
Pos-Austem Suzhou Automotive Co., Ltd	Automotive parts manufacturing		19.90		19.90		China
POS-InfraAuto (Suzhou) Co., Ltd	Automotive parts manufacturing		16.20		16.20		China
POS-AUSTEM YANTAI AUTOMOTIVE CO., LTD	Automotive parts manufacturing		11.10		11.10		China
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD	Automotive parts manufacturing		7.43		7.43		China
DMSA/AMSA	Energy & resource development		3.89		3.89		Madagascar
Roy Hill Holdings Pty Ltd	Energy & resource development		12.50		12.50		Australia
POSCO-NPS Niobium LLC	Mine development		50.00		50.00		USA
HBIS-POSCO Automotive Steel Co., Ltd	Steel manufacturing and sales		50.00		50.00		China
PT NICOLE METAL INDUSTRY	Nickel smelting		49.00		49.00		Indonesia
Hydrogen Duqm LLC(*1)	Green hydrogen/Ammonia product business development		44.80		—		Oman
Nickel Mining Company SAS	Raw material manufacturing and sales		49.00		49.00		New Caledonia
(*1)	During the year ended December 31, 2024, the entities were newly included as joint ventures.<br>
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

1. General Information (cont’d)

(f)	New subsidiaries

Consolidated subsidiaries acquired or newly established during the year ended December 31, 2024 are as follows:

Company	Date of addition		Reason
POSCO CNGR Nickel Solution	January 2024	60.00	New establishment
POSCO CVC Scale-Up Fund	May 2024	60.00	New establishment
SK Solar Plant	July 2024	100.00	Acqusition
POSCO ZT AIR SOLUTION	August 2024	75.10	New establishment
RNR logistics	September 2024	100.00	Acqusition
POSCO (BEIJING) Trading Co., Ltd.	December 2024	100.00	New establishment
Mastern No.123 Yeoju Samgyo PFV CO., Ltd	December 2024	100.00	Acqusition
(g)	Loss of control
---	---

Subsidiaries for which the Group has lost control during the year ended December 31, 2024 are as follows:

Company	Date of<br><br><br>exclusion	Reason
POSCO INTERNATIONAL POWER (PNGLAE) LTD.	June 2024	Divestiture
MYANMAR POSCO E&C (ENGINEERING & CONSTRUCTION) COMPANY LIMITED	October 2024	Liquidation
POSCO WIDE-CHINA CO.,LTD.	November 2024	Liquidation
P&O Chemical Co., Ltd.	December 2024	Reclassification from subsidiary to associate due to articles of incorporation amendment
POSCO(Dalian) IT Center Development Co., Ltd.	December 2024	Divestiture

2. Statement of Compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”), enacted by the Act on External Audit of Stock Companies in the Republic of Korea.

The consolidated financial statements were authorized for issue by the Board of Directors on February 5, 2025 and will be submitted for approval at the shareholders’ meeting to be held on March 20, 2025.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

2. Statement of Compliance (cont’d)

Basis of measurement

The consolidated financial statements have been prepared on a historical cost basis, except for the following material items in the statement of financial position, as described in the accounting policy below.

(a)	Derivatives instruments measured at fair value
(b)	Financial instruments measured at fair value through profit or loss
---	---
(c)	Financial instruments measured at fair value through other comprehensive income
---	---
(d)	Defined benefit liabilities measured at the present value of the defined benefit obligation less the fair value<br>of the plan assets
---	---

Functional and presentation currency

The financial statements of POSCO HOLDINGS INC. and its subsidiaries are prepared in functional currency of the respective operation. These consolidated financial statements are presented in Korean Won, which is POSCO HOLDINGS INC.’s functional currency which is the currency of the primary economic environment in which POSCO HOLDINGS INC. operates.

Use of estimates and judgments

The preparation of the 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.

(a)	Judgments

Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

•	Note 1 - Subsidiaries, associates and joint ventures
•	Note 11 - Investments in associates and joint ventures
---	---
•	Note 12 - Joint operations
---	---
(b)	Assumptions and estimation uncertainties
---	---

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next fiscal year is included in the following notes:

•	Note 15 - Goodwill and other intangible assets, net

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

2. Statement of Compliance (cont’d)

•	Note 20 - Provisions
•	Note 21 - Employee benefits
---	---
•	Note 23 - Financial instruments
---	---
•	Note 29 - Revenue – contract balances
---	---
•	Note 35 - Income taxes
---	---
•	Note 38 - Commitments and contingencies
---	---
(c)	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 the 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, 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 to the greatest extent possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

•	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<br>liabilities, either directly or indirectly.
---	---
•	Level 3 - inputs for the assets or liabilities that are not based on observable market data.<br>
---	---

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.

Information about the assumptions made in measuring fair values is included in the following note:

•	Note 23 - Financial instruments

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

2. Statement of Compliance (cont’d)

Changes in Accounting Policies

Except for the standards and amendments applied for the first time for the reporting period commenced January 1, 2024 described below, the accounting policies applied by the Group in the consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2023.

(a)	Amendments to KIFRS 1116: Lease Liability in a Sale and Leaseback

The amendments to KIFRS 1116 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments had no impact on the Group’s consolidated financial statements.

(b)	Amendments to KIFRS 1001: Classification of Liabilities as Current orNon-current

The amendments to KIFRS 1001 specify the requirements for classifying liabilities as current or non-current.

The amendments clarify:

•	what is meant by a right to defer settlement;
•	that a right to defer must exist at the end of the reporting period;
---	---
•	that classification is unaffected by the likelihood that an entity will exercise its deferral rights; and<br>
---	---
•	that if under the condition that an entity settles the liability by transferring its equity instruments, the<br>option is classified as equity instrument and the option is recognized separate from the liability as a component of equity for hybrid financial instrument, there is no impact on current or non-current<br>classification.
---	---

In addition, an entity is required to disclose when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months. The amendments had no impact on the classification of the Group’s liabilities.

(c)	Amendments to KIFRS 1007 and KIFRS 1107: Supplier Finance Arrangements

The amendments to KIFRS 1007 Statement of Cash Flows and KIFRS 1107 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. As a result of implementing the amendments, the Group has provided additional disclosures about its supplier finance arrangements. (See Note 23)

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information

The material accounting policy information applied by the Group in preparation of its consolidated financial statements are included below. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, except for those as disclosed in note 2.

Basis of consolidation

(a)	Business combinations

The Group accounts for business combinations applying the acquisition method.

(b)	Non-controlling interests

Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date.

(c)	Subsidiaries

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

(d)	Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

(e)	Business combination of entities or businesses under common control

In a business combination of entities or businesses under common control, the assets acquired and liabilities acquired are recognized at their carrying amounts in the consolidated financial statements of the Group. The difference between the consideration transferred and the carrying amount of the net assets acquired is adjusted in capital surplus**.**

Foreign operations

The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments in highly liquid securities that are readily convertible to known amounts of cash with maturities of three months or less from the acquisition date and which are subject to an insignificant risk of changes in value. Equity investments are excluded from cash and cash equivalents.

Non-derivative financial assets

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets are initially recognized when the Group becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus, for an item not at financial assets measured at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(a)	Financial assets measured at amortized cost

Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, gains and losses on foreign currency translation and impairment losses are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(b)	Equity instruments measured at fair value through other comprehensive income

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis.

Equity instruments measured at fair value through other comprehensive income are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and never reclassified to profit or loss.

(c)	Financial assets measured at fair value through profit or loss

All financial assets not classified as measured at amortized cost of fair value through other comprehensive income as described above are measured at fair value through profit or loss. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at fair value through other comprehensive income as at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Financial assets measured at fair value through profit or loss are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

(e)	Derecognition of financial assets

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received.

Inventories

Inventory costs, except materials-in-transit in which costs are determined by using specific identification method, are determined by using the total average method or moving-weighted average method. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The allocation of fixed production overheads to the costs of finished goods or work in progress are based on the normal capacity of the production facilities.

Non-current assets held for sale

Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use and are highly probable for immediate sale in their present condition are classified as held for sale.

Investment property

Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses. Depreciation methods, useful lives and residual values are identical to those applied for property, plant and equipment.

Property, plant and equipment

Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and any accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and, when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

The cost of replacing a part of an item is recognized in the carrying amount of the item of property, plant and equipment, if the following recognition criteria are met:

(a) it is probable that future economic benefits associated with the item will flow to the Group, and

(b) the cost can be measured reliably.

The carrying amount of the replaced part is derecognized at the time the replacement part is recognized. The costs of the day-to-day servicing of the item are recognized in profit or loss as incurred.

Items of property, plant and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Other than land, the costs of an asset less its estimated residual value are depreciated. Depreciation of property, plant and equipment is recognized in profit or loss on a straight-line basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated.

The estimated useful lives of property, plant and equipment are as follows:

Buildings	5-50 years
Structures	4-50 years
Machinery and equipment	2-25 years
Vehicles	3-20 years
Tools	3-20 years
Furniture and fixtures	3-20 years
Lease assets	2-45 years
Bearer plants	20 years

Borrowing costs

The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Financial assets, and inventories that are manufactured, or otherwise produced, over a short period of time, are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets.

Intangible assets

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, certain intangible assets (i.e., club membership) do not have foreseeable limitations on the period during which they can be utilized, therefore, if the useful life of these intangible assets is assessed as indefinite, they are not being amortized.

Intellectual property rights	4-25 years
Development expense	3-5 years
Port facilities usage rights	4-75 years
Other intangible assets	2-15 years

Exploration for and evaluation of mineral resources

POSCO HOLDINGS INC. is engaged in exploration projects for mineral resources through subsidiaries, associates and joint ventures or other contractual arrangements. Expenditures related to the development of mineral resources are recognized as exploration or development intangible assets. The nature of these intangible assets are as follows:

(a)	Exploration and evaluation assets

Exploration and evaluation assets consist of expenditures for topographical studies, geophysical studies and trenching. These assets are reclassified as development assets when it is proved that the exploration has identified commercially viable mineral deposit.

(b)	Development assets

Upon completion of development and inception of extraction for commercial production of developed proved reserves, the development assets are reclassified as either property, plant and equipment or as intellectual property rights (mining rights) under intangible assets based on the nature of the capitalized expenditure.

Government grants

(a)	Grants related to assets

Government grants whose primary condition is that the Group purchases, constructs or otherwise acquires long-term assets are deducted from the carrying amount of the assets and recognized in profit or loss on a systematic and rational basis over the life of the depreciable assets.

(b)	Grants related to income

Government grants which are intended to compensate the Group for expenses incurred are deducted from the related expenses.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Leases

1)	As a lessee

At inception or reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

The Group presents right-of-use assets in the same line item as is presents underlying assets of the same nature that it owns, and lease liabilities are included in other payables on the consolidated statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2)	As a lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. The Group considers certain indicators such as whether the lease is for a major part of the economic life of the asset.

The Group leases out its investment properties. The Group classifies these leases as operating leases. The Group recognizes lease payments received under lease agreements as revenue on a straight-line basis over the lease term.

The Group provides subleases for assets such as vessels and others.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Impairment for financial assets

The Group recognizes loss allowance for expected credit losses on:

•	financial assets measured at amortized cost
•	debt instruments measured at fair value through other comprehensive income
---	---
•	lease receivables, contractual assets, loan commitments, and financial guarantee contracts.<br>
---	---
(a)	Judgments on credit risk
---	---

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held). The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to investment grade defined by reliable credit rating agencies.

(b)	Expected credit losses

Expected credit losses for financial assets measured at amortized cost are recognized in profit or loss. Loss allowances for financial assets measured at amortized cost are deducted from carrying amount of the assets. For debt instruments measured at fair value through other comprehensive income, the loss allowance is charged to profit or loss and is recognized in other comprehensive income.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

(c)	Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets measured at amortized cost and debt instrument measured at fair value through other comprehensive income are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Objective evidence that a financial asset or group of financial assets are impaired includes:

•	significant financial difficulty of the issuer or borrower
•	a breach of contract, such as a default or delinquency in interest or principal payments
---	---
•	the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the<br>borrower a concession that the lender would not otherwise consider.
---	---
•	it becoming probable that the borrower will enter bankruptcy or other financial reorganization<br>
---	---
•	the disappearance of an active market for the financial assets because of financial difficulties<br>
---	---
(d)	Write-off
---	---

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery based on continuous payments and extinct prescriptions. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

Impairment for non-financial assets

The carrying amounts of the Group’s non-financial assets, other than assets arising from contract assets, contract assets recognized in accordance with revenue from contracts with customers, employee benefits, inventories, deferred tax assets and non-current assets held for sale, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

Management estimates the recoverable amount of an individual asset. If it is impossible to measure the individual recoverable amount of an asset, then management estimates the recoverable amount of cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The Group determined that individual operating entities are CGUs.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Derivative financial instruments, including hedge accounting

Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized as described below.

(a)	Hedge accounting

The Group holds currency swaps, currency forwards and commodity future contracts to manage interest rate risk and foreign exchange risk. The Group designated derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

① Fair value hedge

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. Change in the fair value of the hedged item attributable to the risk hedged is also recognized in profit or loss.

② Cash flow hedge

When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.

(b)	Other derivatives

Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized immediately in profit or loss.

Non-derivative financial liabilities

The Group classifies non-derivative financial liabilities into financial liabilities measured at fair value through profit or loss or financial liabilities measured at amortized cost in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Construction work in progress

The gross amount due from customers for contract work is presented for all contracts in which profits multiply cumulative percentage-of-completion exceed progress billings. If progress billings exceed profits multiply cumulative percentage-of-completion, the gross amount due to customers for contract work is presented. The amount received from the customer before the construction work is performed is recognized as an advanced received. The amount billed for completed construction work is recognized as accounts receivable (a receivable).

The Group accounts for the remaining rights and performance obligation on the contract with the customers on a net basis. Due from customers for contract work and due to customers for contract work for same contract are offset and presented on a net basis.

Employee benefits

The Group’s net obligation in respect of defined benefit plans is calculated using the projected unit credit method.

Provisions

A Provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of possible outcomes against their associated probabilities.

Regarding provision for construction warranties, warranty period starts from the completion of construction in accordance with construction contracts. If the Group has an obligation for warranties, provision for warranties which are estimated based on historical warranty data are recorded as cost of construction and provision for warranties during the construction period.

If the estimated total contract cost of the construction contract exceeds the total contract revenue, the estimated contract cost exceeding the contract revenue is recognized as a provision for construction losses in the remaining contract for which construction has not proceeded.

A provision for restoration regarding contamination of land is recognized in accordance with the Group’s announced Environment Policy and legal requirement as needed.

Emission Rights

The Group accounts for greenhouse gases emission right and the relevant liability as follows pursuant to the Act on Allocation and Trading of Greenhouse Gas Emission which became effective in Korea in 2015.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

(a)	Greenhouse Gases Emission Right

Greenhouse Gases Emission Right consists of emission allowances which are allocated from the government free of charge and those purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.

Emission rights held for the purpose of performing the obligation are classified as intangible asset and initially measured at cost and subsequently carried at cost less accumulated impairment losses. The Group derecognizes an emission right asset when the emission allowance is unusable, disposed or submitted to government when the future economic benefits are no longer expected to be probable.

(b)	Emission liability

Emission liability is a present obligation of submitting emission rights to the government with regard to emission of greenhouse gas. Emission liability is recognized when there is a high possibility of outflows of resources in performing the obligation and the costs required to perform the obligation are reliably estimable. Emission liability is an amount of estimated obligations for emission rights to be submitted to the government for the performing period. The emission liability is measured based on the expected quantity of emission for the performing period in excess of emission allowance in possession and the unit price for such emission rights in the market at the end of the reporting period. The emission liability is derecognized when submitted to the government.

HybridBonds

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument. When the Group has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation, the instruments are classified as equity instruments.

Revenue from contracts with customers

Revenue is measured based on the consideration promised in the contract with the customer. The Group recognizes revenue when the control over a good or service is transferred to the customer. The following are the revenue recognition policies for performance obligations in the contracts with customers in accordance with KIFRS 1115.

(a) Sale of good

The goods sold by the Group consist mainly of steel products from the steel segment and products such as steel, chemicals, auto parts and machinery in the trade segment.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

For domestic sales, the control of the product is usually transferred to the customer when the product is delivered to the customer, at which point in time revenue is recognized. Invoices are generally due within 10 to 90 days. When a customer makes payment prior to the due date, they are offered a discount at certain percentage of the invoice amount.

For export sales, revenue is recognized at the time when control of the product is transferred to the customer based on the “International Commercial Terms (Incoterms) for Interpretation of Trade Terms” prescribed in the respective contracts, and the Group’s export contract generally transfers control to the customer at the shipping of the product. Invoices are usually issued at the date of bill of lading and revenues are recognized based on the terms of Letter of Credit (L/C), Acceptance Condition (D/A), Payment Condition (D/P), Telegraphic Transfer (T/T) and others.

The Group provides certain discount when the customer prepays according to the payment terms. The Group recognized revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when discount period expires.

(b) Transportation service

For the performance obligation for transportation services included in the Group’s product sales contracts, revenue is recognized over the period when in which the services are provided and the revenue is measured by reference to examining the degree to which the service has been completed so far. The billing date and payment terms for the service charge are the same as the billing date and payment terms for sale of goods.

In the case of construction contracts where the Group renders construction services for plants, etc., the customer controls the assets as they are being constructed. This is because under those contracts, the Group is able to perform construction or design services to meet the customer’s specifications, and if a contract is terminated by the customer, the Group is entitled to reimbursement of all costs incurred to date, including a reasonable margin. When the contract can be reliably estimated, the Group recognizes the contract revenue and contract cost as revenue and costs based on the progress of the contract activity as of the end of the reporting period. The percentage of completion is determined based on the proportion that contract costs incurred for work performed excluding contract cost incurred that do not reflect the stage of completion to date bear to the estimated total contract costs.

If the outcome of the contract cannot be reliably estimated, the revenue is recognized only to the extent of the contract costs that are probable to be recovered.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

When it is probable that total contract costs will exceed total contract revenue, the expected losses are immediately recognized as an expense.

The Group issues an invoice when the customer has completed a progress confirmation and generally the payment is due within 45 days from the invoice date.

(d) Certain construction contracts for apartments

For certain construction service contracts for apartments where the criterion of an enforceable right to payment for performance is met under KIFRS 1115, even if the legal ownership or physical occupancy of the incomplete construction is not transferred to the customer during the construction period, revenue is recognized based on percentage of completion by considering the terms and conditions described in the relevant law and contracts such as the guarantee for sale policy, government approval on business plan, payment and termination terms. For certain construction contracts for apartments and shopping centers where the criterion of an enforceable right to payment for performance is not met during the construction period, the Group recognizes revenue upon completion of construction when the control of the apartments and shopping centers are transferred to customers.

In the meantime, the billing point and settlement terms of the pre-sale contract differ depending on the contract terms.

Finance income and finance costs

The Group’s finance income and finance costs include:

•	interest income;
•	interest expense;
---	---
•	dividend income;
---	---
•	the foreign currency gain or loss on financial assets and financial liabilities;
---	---
•	the net gain or loss on financial assets measured at fair value through profit or loss;
---	---
•	hedge ineffectiveness recognized in profit or loss; and
---	---
•	the net gain or loss on the disposal of investments in debt securities measured at fair value through other<br>comprehensive income.
---	---

Interest income or expense is recognized using the effective interest method. Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Income taxes

The Group recognizes interest and penalties related to corporate tax as if it is applicable to the income taxes, the Group applies KIFRS 1012 IncomeTaxes, if it is not applicable to the income taxes, the Group applies KIFRS 1037 Provisions Contingent Liabilities and Contingent Assets.

Segment Reporting

Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 40). Operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

Jointarrangements

Joint arrangements in which two or more parties have joint control are classified as joint operations or joint ventures. Participants in a joint operation retain rights and obligations for the joint operation’s assets and liabilities and recognizes its share of the joint operation’s assets and liabilities, income and expenses. Participants in a joint venture have rights to the net assets of the joint venture, and the equity method is applied.

Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s consolidated financial statements are disclosed below. The Group has not early adopted the new or amended standards in preparation of these consolidated financial statements.

(a)	Amendments to KIFRS 1021: Lack of Exchangeability

The amendments to KIFRS 1021 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the Group’s financial performance, financial position, and cash flows. The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. Early adoption is permitted, but will need to be disclosed.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

When applying the amendments, the Group cannot restate comparative information. The amendments are not expected to have a material impact on the Group’s consolidated financial statements.

(b)	Amendments to KIFRS 1109 Financial Instruments and 1107: Financial Instruments: Disclosures –Classification and Measurement of Financial Instruments

The amendments to KIFRS 1109 Financial Instruments and KIFRS 1107 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments include the following:

•	clarify that a financial liability is derecognized on the settlement date and introduce an accounting policy<br>choice to derecognize financial liabilities that are settled by using electronic payment system before the settlement date (if specific criteria are met);
•	provide additional guidance as to how to assess contractual cash flows of financial assets with environmental,<br>social and corporate governance (ESG) and similar features;
---	---
•	clarify what constitutes non-recourse feature and the characteristics of<br>contractually linked financial instruments; and
---	---
•	introduce disclosures on financial instruments with contingent features and additional disclosure requirements<br>for equity instruments measured at fair value through other comprehensive income.
---	---

The amendments will be effective for annual periods beginning on or after January 1, 2026. Early adoption is permitted, but only for the classification of financial assets and the related disclosures. The Group does not plan to early adopt the amendments.

(c)	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<br>
•	Amendments to KIFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition, Guidance forapplication of amendments in practice
---	---
•	Amendments to KIFRS 1109 Financial Instruments: Accounting for derecognition of lease liabilities anddefinition of transaction prices
---	---
•	Amendments to KIFRS 1110 Consolidated Financial Statements: Determination of a ‘de facto agent’<br>
---	---
•	Amendments to KIFRS 1007 Statement of Cash Flows: Cost Method
---	---

The amendments will be effective for the annual periods beginning on or after January 1, 2026. Early adoption is permitted but will need to be disclosed. The amendments are not expected to have a material impact on the Group’s consolidated financial statements.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

4. Financial risk management

The Group has exposure to the following risks from its use of financial instruments:

•	credit risk
•	liquidity risk
---	---
•	market risk
---	---
•	capital risk
---	---

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risks, and the Group’s capital management. Further quantitative disclosures are included throughout these consolidated financial statements.

(a)	Financial risk management
1)	Risk management framework
---	---

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

2)	Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities. In addition, credit risk arises from finance guarantees.

The Group implements a credit risk management policy under which the Group only transacts business with counterparties that have a certain level of credit rate evaluated based on financial condition, historical experience, and other factors. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The default risk of a nation or an industry in which a customer operates its business does not have a significant influence on credit risk. The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness.

The Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for companies of similar assets in respect of losses that have been incurred.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

4. Financial risk management (cont’d)

Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Group manages its exposure to this credit risk by only entering into transactions with banks that have high international credit ratings. The Group’s treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Group has no previous relationship.

Furthermore, the Group limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the Board of Directors.

3)	Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, to the greatest extent possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group’s cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Group’s strategic investments. Management believes that the Group is capable of raising funds by borrowing or financing if the Group is not able to generate cash flow requirements from its operations. The Group has committed borrowing facilities with various banks.

4)	Market risk

Market risk means that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.

①	Currency risk

The Group’s policy in respect of foreign currency risks is a natural hedge whereby foreign currency income is offset with foreign currency expenditures. The remaining net exposures after the natural hedge have been hedged using derivative contracts such as forward exchange contracts. In addition, the Group’s derivative transactions are limited to hedging actual foreign currency transactions and speculative hedging is not permitted. Based on this policy, the Group has performed currency risk management specific to various characteristics of different segments. The entities in the steel segment reduces the foreign currency exposure by repayment of foreign currency borrowings subjected to investment in overseas when its maturities come.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

4. Financial risk management (cont’d)

The entities in the engineering and construction segment have hedged foreign currency risks by using forward exchange contracts. Entities in the trading segment have hedged foreign currency risks by using forward exchange contracts when the foreign currencies received and paid are different.

②	Interest rate risk

The Group manages the exposure to interest rate risk by adjusting the borrowing structure ratio between borrowings at fixed interest rate and variable interest rate. The Group monitors interest rate risks regularly in order to avoid exposure to interest rate risk on borrowings at variable interest rate.

③	Other market price risk

Equity price risk arises from fluctuation of market price of listed equity securities. Management of the Group measures regularly the fair value of listed equity securities and the risk of variance in future cash flow caused by market price fluctuations. Significant investments are managed separately and all buy and sell decisions are approved by management of the Group.

(b)	Management of capital

The fundamental goal of capital management is the maximization of shareholders’ value by means of the stable dividend policy and the retirement of treasury shares. The capital structure of the Group consists of equity and net borrowings (total borrowings after deducting cash and cash equivalents). The Group applied the same capital risk management strategy that was applied in the previous period.

Net borrowing-to-equity ratio as of December 31, 2024 and 2023 is as follows:

(in millions of Won)	2024
Total borrowings	~~W~~	25,997,367		25,970,379
Less: Cash and cash equivalents		6,767,898		6,670,879
Net borrowings		19,229,469		19,299,500
Total equity		61,450,368		59,663,897
Net<br>borrowings-to-equity ratio		31.29	%	32.35	%

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

5. Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Cash	~~W~~	9,189	12,312
Demand deposits and checking accounts		2,220,202	2,537,545
Time deposits		1,908,284	1,473,081
Other cash equivalents		2,630,223	2,647,941
	~~W~~	6,767,898	6,670,879

As of December 31, 2024 and 2023, cash and cash equivalents of subsidiaries of the Group, such as POSCO amounting to ~~W~~46,650 million and ~~W~~85,163 million, respectively, are restricted.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

6. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Trade accounts and notes receivable	~~W~~	9,654,940		9,382,640
Due from customers for contract work		1,488,180		1,916,238
Less: Allowance for doubtful accounts		(321,501	)	(283,575	)
	~~W~~	10,821,619		11,015,303
Non-current
Trade accounts and notes receivable	~~W~~	72,387		89,839
Less: Allowance for doubtful accounts		(44,608	)	(47,323	)
	~~W~~	27,779		42,516

The Group discounted trade accounts receivable in accordance with trade accounts receivable factoring agreements with financial institutions for the years ended December 31, 2024 and 2023. This transaction is a transaction with recourse right 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 December 31, 2024 and 2023, the book value of the trade accounts receivable from the transaction is ~~W~~119,076 million and ~~W~~132,942 million, respectively, and the amount is included in the short-term borrowings.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

7. Other Receivables

(a)	The details of other receivables as of December 31, 2024 and 2023, are as follows:
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Current
Short-term loans	~~W~~	375,244			223,011
Other accounts receivable		1,671,039			1,433,423
Accrued income		293,985			237,154
Deposits		80,007			125,854
Others		28,480			15,349
Lease receivables		18,224			23,948
Less: Allowance for doubtful accounts		(205,656	)		(111,210	)
	~~W~~	2,261,323			1,947,529
Non-current
Long-term loans(*1)	~~W~~	1,247,255			1,204,645
Other accounts receivable		192,736			186,492
Accrued income		189,565			184,739
Deposits		142,698			308,185
Lease receivables		76,680			78,994
Less: Allowance for doubtful accounts		(542,605	)		(510,610	)
	~~W~~	1,306,329			1,452,445
(*1)	The Group recognized an allowance for doubtful accounts of ~~W~~288,315 million for all of<br>the other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.
---	---
(b)	The details of lease receivables are as follows:
---	---
Customer	Leased items		2024		2023
---	---	---	---	---	---	---
Pohang University of Science and Technology		Lease contract	~~W~~	7,429		7,586
Korea Business Angels Association		Lease contract		2,162		2,339
HEUNG-A SHIPPING CO., LTD.,<br>HEUNG-A LINE CO., LTD.		3 Container Ships, 4<br>Tankers		45,179		50,429
Executive Offshore, PT Wintermar, COHC, Myanma Port Authority		Helicopter, Ship,<br>Jetty		40,134		42,588
			~~W~~	94,904		102,942

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

7. Other Receivables (cont’d)

(c)	As of December 31, 2024 and 2023, total lease investment and net lease investment are as follows:<br>
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Less than 1 year	~~W~~	19,051			24,965
1 year 03 years		31,805			31,840
3 years 05 years		9,848			20,820
Over 5 years		68,527			63,583
Undiscounted lease payments		129,231			141,208
Unrealized interest income		(34,327	)		(38,266	)
Present value of minimum lease payment	~~W~~	94,904			102,942

8. Other Financial Assets

Other financial assets as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Derivatives assets	~~W~~	465,178	166,873
Debt securities		400,771	295,619
Deposit instruments(*1)		6,420,797	4,400,267
Short-term financial instruments(*1)		1,212,643	6,540,407
	~~W~~	8,499,389	11,403,166
Non-current
Derivatives assets	~~W~~	497,698	134,269
Equity securities(*2)		1,171,544	1,793,531
Debt securities		115,601	87,778
Other securities(*2)		762,177	669,687
Deposit instruments(*1)		24,631	23,060
	~~W~~	2,571,651	2,708,325
(*1)	As of December 31, 2024 and 2023, financial instruments amounting to ~~W~~98,116 million<br>and ~~W~~101,888 million, respectively, are restricted in use for financial arrangements, pledge and others.
---	---
(*2)	As of December 31, 2024 and 2023, ~~W~~182,862 million and<br>~~W~~181,617 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

9. Inventories

(a)	Inventories as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Finished goods	~~W~~	2,741,236			2,615,009
M erchandise		1,166,464			1,049,467
Semi-finished goods		2,659,707			3,039,516
Raw materials		3,764,453			3,237,691
Fuel and materials		1,038,854			921,742
Construction inventories		200,825			256,558
M<br>aterials-in-transit		2,889,334			2,965,306
Others		118,391			87,802
		14,579,264			14,173,091
Less: Allowance for inventories valuation(*1)		(435,764	)		(347,577	)
	~~W~~	14,143,500			13,825,514
(*1)	For the years ended December 31, 2024 and 2023, allowance for inventories valuation increased by<br>~~W~~77,832 million and ~~W~~52,348 million, respectively.
---	---
(b)	The allowance for inventories valuation by item as of December 31, 2024 and 2023 are as follows:<br>
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Finished goods	~~W~~	187,902		119,325
M erchandise		14,288		14,499
Semi-finished goods		103,751		67,842
Raw materials		113,413		128,812
Fuel and materials		6,060		6,694
Construction inventories		6,420		8,801
Others		3,930		1,604
	~~W~~	435,764		347,577

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

10. Assets Held for Sale

Details of assets held for sale as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	*2024(1,2)**
Asset
Account reveivables and other receivables		—	728
Inventories		—	39,054
Equity Securities		604,439	119,881
Property, plant and equipment		4,319	149,612
Intangible assets		—	97,372
Others		—	298
	~~W~~	608,758	406,945
Liability
Other receivables	~~W~~	—	22,180
Provisions		—	119,710
	~~W~~	—	141,890
(*1)	During the year ended December 31, 2024, the Group determined to sell Nippon Steel Corporation and<br>classified the equity security as assets held for sale
---	---
(*2)	POSCO International Corporation has classified its entire stake in AES Mong Duong Power Co., Ltd. and Mong<br>Duong Finance Holdings B.V. as assets held for sale, as it is expected that these shares will be recovered through a sale transaction. The amount has been measured at the lower of the net fair value, which is the fair value less costs to sell, and<br>the carrying amount.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures

(a)	Investments in associates and joint ventures as of December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024		2023
---	---	---	---	---
Investments in associates	~~W~~	1,632,386		2,103,594
Investments in joint ventures		3,106,407		2,916,670
	~~W~~	4,738,793		5,020,264
(b)	Details of investments in associates as of December 31, 2024 and 2023 are as follows:<br>
---	---
(in millions of Won)	2024								2023
---	---	---	---	---	---	---	---	---	---	---
Company	Numberof shares		Ownership(%)		Acquisitioncost		Book value		Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1)		4,507,138		34.00	~~W~~	455,584	~~W~~	392,269		323,521
Chun-cheon Energy Co., Ltd(*1)		17,308,143		49.10		86,541		14,054		15,040
Pocheon-Hwado Highway Corp.(*1)		7,109,230		27.89		35,546		14,834		23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		944,920		29.53		4,725		12,401		13,967
PCC Amberstone Private Equity Fund 1(*2)		5,771,057,320		8.80		5,771		6,181		8,904
Others(*1)								122,688		142,662
								562,427		528,092
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		135,219,000		25.04		111,039		279,349		287,282
AES Mong Duong Power Company Limited(*1)		—		30.00		164,303		—		230,699
9404-5515 Quebec Inc.		284,463,243		25.85		328,509		426,276		346,724
AMCI (WA) PTY LTD		49		49.00		209,664		68,478		60,225
NCR LLC		—		22.05		247,077		—		253,121
KOREA LNG LTD.		2,400		20.00		135,205		25,622		58,759
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		648,530,000		40.00		120,072		—		105,300
PT. Wampu Electric Power(*1)		8,708,400		20.00		10,054		17,680		15,632
POS-SeAH Steel Wire(Nantong) Co., Ltd.		50		25.00		4,723		10,713		8,642
Others(*1)								241,841		209,118
								1,069,959		1,575,502
							~~W~~	1,632,386		2,103,594
(*1)	As of December 31, 2024 and 2023, investments in associates amounting to<br>~~W~~452,614 million and ~~W~~678,876 million, respectively, are provided as collateral in relation to the associates’ borrowings.
---	---
(*2)	As of December 31, 2024, the entities are classified as associates since the Group has significant<br>influence over the investees although the Group’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

(c)	Details of investments in joint ventures as of December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024								2023
---	---	---	---	---	---	---	---	---	---	---
Company	Numberof shares		Ownership(%)		Acquisitioncost		Book value		Book value
[Domestic]
POSCO MC MATERIALS		11,568,000		60.00	~~W~~	115,680	~~W~~	153,839		155,748
SNNC(*1)		18,130,000		49.00		90,650		38,046		100,692
Others (6 companies)								10,042		8,323
								201,927		264,763
[Foreign]
Roy Hill Holdings Pty Ltd(*1)		13,117,972		12.50		1,528,672		1,397,824		1,400,009
POSCO-NPS Niobium LLC		325,050,000		50.00		364,609		477,898		419,192
KOBRASCO		2,010,719,185		50.00		32,950		119,820		99,768
Nickel Mining Company SAS(*1)		3,234,698		49.00		157,585		—		87,967
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		—		25.00		61,961		126,906		111,001
DMSA/AMSA(*1)		—		3.89		346,880		—		16,572
PT NICOLE METAL INDUSTRY(*2)		137,488,235		49.00		540,604		578,604		284,351
HBIS-POSCO Automotive Steel Co., Ltd		—		50.00		235,251		179,841		208,765
Others								23,587		24,282
								2,904,480		2,651,907
							~~W~~	3,106,407		2,916,670
(*1)	As of December 31, 2024 and 2023, the investments in joint ventures are provided as collateral in relation<br>to the joint ventures’ borrowings.
---	---
(*2)	During the year ended December 31, 2024, the Group acquired ~~W~~247,824 million of<br>additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY’s capital increase.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

(d)	Changes in investments in associates and joint ventures for the years ended December 31, 2024 and 2023 are<br>as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)<br><br><br>Company	December 31,2023Book value		Acquisition		Dividends			Share ofprofits (losses)			*Other increase(decrease)(1)**			December 31,2024Book value
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
[Domestic]
Samcheok Blue Power Co.,Ltd.	~~W~~	323,521		25,680		(10,993	)		54,140			(79	)		392,269
SNNC		100,692		—		—			(61,898	)		(748	)		38,046
Chun-cheon Energy Co., Ltd		15,040		—		—			1,807			(2,793	)		14,054
Pocheon-Hwado Highway Corp.		23,998		—		—			(9,164	)		—			14,834
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		13,967		—		—			(384	)		(1,182	)		12,401
PCC Amberstone Private Equity Fund 1		8,904		175		(490	)		(484	)		(1,924	)		6,181
POSCO MC MATERIALS		155,748		—		(1,800	)		403			(512	)		153,839
Others		150,985		12,362		(4,999	)		(6,802	)		(18,816	)		132,730
		792,855		38,217		(18,282	)		(22,382	)		(26,054	)		764,354
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		287,282		—		(64,208	)		45,923			10,352			279,349
AES Mong Duong Power Company Limited(*2)		230,699		—		(34,821	)		(82,075	)		(113,803	)		—
9404-5515 Quebec Inc.		346,724		—		(17,764	)		35,241			62,075			426,276
AMCI (WA) PTY LTD		60,225		—		—			(5,127	)		13,380			68,478
NCR LLC		253,121		4,275		—			(266,425	)		9,029			—
KOREA LNG LTD.		58,759		—		(17,829	)		17,714			(33,022	)		25,622
Nickel Mining Company SAS		87,967		—		—			(94,353	)		6,386			—
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		105,300		—		—			(117,143	)		11,843			—
PT. Wampu Electric Power		15,632		—		(1,764	)		1,238			2,574			17,680
POS-SeAH Steel Wire(Nantong) Co., Ltd.		8,642		—		—			573			1,498			10,713
Roy Hill Holdings Pty Ltd		1,400,009		—		(284,541	)		203,130			79,226			1,397,824
POSCO-NPS Niobium LLC		419,192		—		(29,225	)		29,336			58,595			477,898
KOBRASCO		99,768		—		(5,761	)		37,914			(12,101	)		119,820
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		111,001		—		(10,772	)		14,207			12,470			126,906
DMSA/AMSA		16,572		—		—			(17,299	)		727			—
PT NICOLE METAL INDUSTRY		284,351		247,824		—			(315	)		46,744			578,604
HBIS-POSCO Automotive Steel Co., Ltd		208,765		—		—			(49,480	)		20,556			179,841
Others		233,400		7,860		(26,222	)		12,865			37,525			265,428
		4,227,409		259,959		(492,907	)		(234,076	)		214,054			3,974,439
	~~W~~	5,020,264		298,176		(511,189	)		(256,458	)		188,000			4,738,793
(*1)	Other increase (decrease) represents the changes in investments in associates and joint ventures due to<br>disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others for the year ended December 31, 2024.
---	---
(*2)	During the year ended December 31, 2024, the Group determined to sell AES Mong Duong Power Company Limited<br>and classified it as assets held for sale.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

2)	For the year ended December 31, 2023
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Company	December 31,2022Book value		Acquisition		Dividends			Share ofprofits (losses)			*Other increase(decrease)(1)**			December 31,2023Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	~~W~~	352,500		—		(10,020	)		(18,802	)		(157	)		323,521
SNNC		182,414		—		—			(81,803	)		81			100,692
QSONE Co.,Ltd.(*2)		86,378		—		—			245			(86,623	)		—
Chun-cheon Energy Co., Ltd		9,513		—		—			4,990			537			15,040
Pocheon-Hwado Highway Corp.		27,165		636		—			(3,803	)		—			23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		14,605		—		—			(638	)		—			13,967
DaeSung SnM Co., Ltd		20,469		—		—			75			(248	)		20,296
PCC Amberstone Private Equity Fund 1		9,326		—		(622	)		562			(362	)		8,904
POSCO MC MATERIALS		161,465		—		(9,000	)		3,176			107			155,748
Others		160,553		16,439		(4,292	)		1,966			(43,977	)		130,689
		1,024,388		17,075		(23,934	)		(94,032	)		(130,642	)		792,855
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		290,318		—		(59,295	)		50,340			5,919			287,282
AES Mong Duong Power Company Limited		209,594		—		(33,839	)		38,782			16,162			230,699
9404-5515 Quebec Inc.		331,261		—		(14,251	)		16,494			13,220			346,724
FQM Australia Holdings Pty Ltd		98,103		—		—			(111,783	)		13,680			—
Eureka Moly LLC		14,574		—		—			(15,020	)		446			—
AMCI (WA) PTY LTD		57,830		—		—			(503	)		2,898			60,225
NCR LLC		187,372		65,542		—			(6,999	)		7,206			253,121
KOREA LNG LTD.		29,124		—		(21,106	)		21,060			29,681			58,759
Nickel Mining Company SAS		90,636		—		—			(8,358	)		5,689			87,967
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		98,933		15,640		—			(8,435	)		(838	)		105,300
PT. Wampu Electric Power		16,659		—		(1,624	)		1,890			(1,293	)		15,632
POS-SeAH Steel Wire(Nantong) Co., Ltd.		8,590		—		—			98			(46	)		8,642
Roy Hill Holdings Pty Ltd		1,418,022		—		(367,445	)		292,478			56,954			1,400,009
POSCO-NPS Niobium LLC		412,002		—		(35,543	)		35,148			7,585			419,192
KOBRASCO		103,044		—		(36,471	)		21,795			11,400			99,768
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		111,219		—		(12,386	)		12,669			(501	)		111,001
DMSA/AMSA		23,740		—		—			(7,681	)		513			16,572
PT NICOLE METAL INDUSTRY		—		292,780		—			39			(8,468	)		284,351
HBIS-POSCO Automotive Steel Co., Ltd		216,138		—		—			(6,765	)		(608	)		208,765
Others		255,004		—		(52,444	)		38,461			(7,621	)		233,400
		3,972,163		373,962		(634,404	)		363,710			151,978			4,227,409
	~~W~~	4,996,551		391,037		(658,338	)		269,678			21,336			5,020,264
(*1)	Other increase (decrease) represents the changes in investments in associates and joint ventures due to<br>disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others during the year ended December 31, 2023.
---	---
(*2)	During the year ended December 31, 2023, the Group acquired additional 50% of the shares from external<br>shareholders of QSONE Co., Ltd., which was previously classified as an investment in an associate. As a result, the Company gained control of the company and consolidated it.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

(e)	Summarized financial information of associates and joint ventures as of and for the years ended<br>December 31, 2024 and 2023 are as follows:
1)	As of and for the year December 31, 2024
---	---
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---
Company	Assets		Liabilities		Equity(deficit)			Sales		Net income(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.	~~W~~	4,770,385		4,013,505		756,880			596,497		177,922
SNNC		656,049		560,530		95,519			690,103		(127,233	)
Chun-cheon Energy Co., Ltd		540,333		417,139		123,194			430,679		5,089
Pocheon-Hwado Highway Corp.		690,646		599,199		91,447			21,920		(29,582	)
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		14,663		2,968		11,695			—		(1,302	)
PCC Amberstone Private Equity Fund 1		72,722		2,455		70,267			7		(5,508	)
POSCO MC MATERIALS		385,270		127,335		257,935			226,376		1,217
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		1,634,345		518,743		1,115,602			409,790		183,392
AES Mong Duong Power Company Limited		1,758,256		922,268		835,988			460,672		118,071
9404-5515 Quebec Inc.		1,704,653		—		1,704,653			—		136,320
FQM Australia Holdings Pty Ltd		61,735		1,521,991		(1,460,256	)		102,869		(396,146	)
KOREA LNG LTD.		128,215		102		128,113			90,578		88,572
Nickel Mining Company SAS		519,560		282,321		237,239			237,102		(27,170	)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		325,284		39,058		286,226			82,254		(7,139	)
PT. Wampu Electric Power		209,725		124,359		85,366			19,133		6,191
POS-SeAH Steel Wire(Nantong) Co., Ltd.		98,919		58,972		39,947			139,499		2,145
Roy Hill Holdings Pty Ltd		10,460,434		2,356,265		8,104,169			7,179,077		2,038,555
POSCO-NPS Niobium LLC		955,592		—		955,592			—		57,722
KOBRASCO		282,087		43,052		239,035			118,408		74,690
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		1,180,532		699,775		480,757			1,595,656		56,830
DMSA/AMSA		3,364,786		3,468,220		(103,434	)		694,120		(571,215	)
HBIS-POSCO Automotive Steel Co., Ltd		1,024,831		645,671		379,160			518,808		(90,757	)
PT NICOLE METAL INDUSTRY		818,168		25,039		793,129			—		(644	)

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

2)	As of and for the year ended December 31, 2023
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---
Company	Assets		Liabilities		Equity(deficit)			Sales		Net income(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.	~~W~~	4,228,568		3,669,074		559,494			14,002		(28,880	)
SNNC		612,992		388,715		224,277			766,011		(168,553	)
Chun-cheon Energy Co., Ltd		571,495		453,390		118,105			502,879		10,453
Pocheon-Hwado Highway Corp.		583,935		462,900		121,035			—		(1,824	)
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		19,995		2,998		16,997			5,595		(2,160	)
DaeSung SnM Co., Ltd		178,251		93,930		84,321			108,660		430
PCC Amberstone Private Equity Fund 1		105,145		3,923		101,222			12,134		6,391
POSCO MC MATERIALS		431,090		170,518		260,572			194,238		2,998
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		1,758,765		611,484		1,147,281			434,358		201,031
AES Mong Duong Power Company Limited		1,612,793		889,424		723,369			449,807		129,274
9404-5515 Quebec Inc.		1,430,295		—		1,430,295			—		63,809
FQM Australia Holdings Pty Ltd		180,931		1,219,922		(1,038,991	)		453,626		(1,480,586	)
KOREA LNG LTD.		94,661		136		94,525			108,081		105,300
Nickel Mining Company SAS		520,209		272,567		247,642			296,130		(26,786	)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		297,683		33,927		263,756			34,372		(21,081	)
PT. Wampu Electric Power		206,942		131,822		75,120			20,166		9,452
POS-SeAH Steel Wire(Nantong) Co., Ltd.		82,568		48,727		33,841			117,208		522
Roy Hill Holdings Pty Ltd		10,929,518		3,007,919		7,921,599			8,146,546		2,826,424
POSCO-NPS Niobium LLC		838,180		—		838,180			—		64,687
KOBRASCO		224,406		25,475		198,931			63,338		43,591
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		659,704		242,566		417,138			1,647,395		50,675
DMSA/AMSA		3,058,209		2,632,239		425,970			1,106,369		(197,482	)
HBIS-POSCO Automotive Steel Co., Ltd		826,886		398,751		428,135			340,341		(12,584	)
PT NICOLE METAL INDUSTRY		389,077		2,237		386,840			—		79

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investments in Associates and Joint ventures (cont’d)

(f)	The amounts of equity method losses not recognized due to the suspension of the application of the equity<br>method associates and join ventures are as follows:
(in millions of Won)
---	---	---	---	---	---	---	---
Company	Beginningbalance		Increaseor decrease			Endingbalance
New Songdo International City Development, LLC	~~W~~	116,715		(4,410	)		112,305
UITrans LRT Co., Ltd.		46,455		2,041			48,496
FQM Australia Holdings Pty Ltd		252,727		102,470			355,197
Others		57,281		4,452			61,733
	~~W~~	473,178		104,553			577,731

12. Joint Operations

Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of December 31, 2024 are as follows:

Joint operations	Operation	Ownership (%)	Location
Myanmar A-1/A-3<br>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

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

13. Investment Property

(a)	Investment property as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024							2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Acquisition cost		Accumulateddepreciation andimpairment loss			Book value		Acquisition cost		Accumulateddepreciation andimpairment loss			Book value
Land	~~W~~	876,549		(10,099	)		866,450		804,022		(16,718	)		787,304
Buildings		1,173,721		(230,870	)		942,851		905,649		(249,863	)		655,786
Structures		3,342		(1,587	)		1,755		3,384		(1,511	)		1,873
Right of use assets		188,397		(43,557	)		144,840		208,036		(36,705	)		171,331
	~~W~~	2,242,009		(286,113	)		1,955,896		1,921,091		(304,797	)		1,616,294

The fair value of major investment properties is determined based on the assumptions and data used in the valuation by an independent appraiser with recognized professional qualifications, and the fair value of the investment properties as of December 31, 2024 is ~~W~~2,817,584 million.

(b)	Changes in the carrying amount of investment property for the years ended December 31, 2024 and 2023 are<br>as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Beginning		Acquisitions		*BusinessCombination(1)**		Disposals			Depreciation			Impairmentloss			*Others(2)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land	~~W~~	787,304		3,755		59,766		(47,137	)		—			(215	)		62,977			866,450
Buildings		655,786		1,782		355,155		(34,419	)		(34,179	)		(9,776	)		8,502			942,851
Structures		1,873		—		—		—			(911	)		—			793			1,755
Right of use assets		171,331		—		—		(107	)		(6,547	)		—			(19,837	)		144,840
	~~W~~	1,616,294		5,537		414,921		(81,663	)		(41,637	)		(9,991	)		52,435			1,955,896
(*1)	During the year ended December 31, 2024, RNR Logistics and others were included as subsidiaries, and the<br>Group has included the effect of the increase in investment properties in the business combination.
---	---
(*2)	Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation<br>difference and others.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)	Beginning		Acquisitions		*BusinessCombination(1)**		Disposals			Depreciation			*Others(2)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land	~~W~~	308,523		54,891		473,301		(60	)		—			(49,351	)		787,304
Buildings		593,505		1,006		83,739		(303	)		(28,902	)		6,741			655,786
Structures		1,356		—		—		—			(1,049	)		1,566			1,873
Right of use assets		170,647		216		—		(78	)		(5,635	)		6,181			171,331
	~~W~~	1,074,031		56,113		557,040		(441	)		(35,586	)		(34,863	)		1,616,294
(*1)	Represents increases in investment property due to business combination upon incorporation of QSONE Co., Ltd.<br>into a subsidiary during the year ended December 31, 2023.
---	---
(*2)	Includes reclassification resulting from changing purpose of use, adjusted foreign currency translation<br>difference and others.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

14. Property, Plant and Equipment

(a)	Property, plant and equipment as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024										2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Acquisition cost		Accumulateddepreciation andimpairment loss			Government<br>grants			Book value		Acquisition<br>cost		Accumulateddepreciation andimpairment loss			Government<br>grants			Book value
Land	~~W~~	3,353,019		(12,144	)		(5,000	)		3,335,875		3,295,768		(5,524	)		—			3,290,244
Buildings		12,097,246		(6,808,735	)		(7,543	)		5,280,968		10,671,833		(6,237,883	)		(6,318	)		4,427,632
Structures		8,292,323		(4,431,766	)		(34	)		3,860,523		7,159,034		(4,077,472	)		(38	)		3,081,524
Machinery and equipment		58,845,673		(40,516,816	)		(17,179	)		18,311,678		54,184,134		(37,630,472	)		(14,470	)		16,539,192
Vehicles		433,218		(340,993	)		(2,250	)		89,975		383,891		(302,246	)		(2,050	)		79,595
Tools		609,799		(474,877	)		(421	)		134,501		557,394		(428,215	)		(314	)		128,865
Furniture and fixtures		911,525		(711,472	)		(20	)		200,033		840,366		(650,424	)		(55	)		189,887
Lease assets		1,589,388		(618,754	)		—			970,634		1,468,295		(469,990	)		—			998,305
Bearer plants		203,433		(63,982	)		—			139,451		186,723		(49,392	)		—			137,331
Construction-in-progress		7,744,779		(180,824	)		(40,765	)		7,523,190		6,421,533		(76,358	)		(11,503	)		6,333,672
	~~W~~	94,080,403		(54,160,363	)		(73,212	)		39,846,828		85,168,971		(49,927,976	)		(34,748	)		35,206,247
(b)	Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2024 and<br>2023 are as follows:
---	---

1) For the year ended December 31, 2024

(in millions of Won)	Beginning
Land	~~W~~	3,290,244	20,523	(6,061	)	—		(6,620	)	37,789		3,335,875
Buildings		4,427,632	14,002	(11,137	)	(346,334	)	(67,797	)	1,264,602		5,280,968
Structures		3,081,524	11,663	(4,497	)	(306,017	)	(15,328	)	1,093,178		3,860,523
Machinery and equipment		16,539,192	179,457	(47,511	)	(2,484,915	)	(385,367	)	4,510,822		18,311,678
Vehicles		79,595	17,353	(1,487	)	(39,263	)	(56	)	33,833		89,975
Tools		128,865	28,731	(673	)	(54,966	)	(1,573	)	34,117		134,501
Furniture and fixtures		189,887	27,966	(2,380	)	(70,561	)	(3,260	)	58,381		200,033
Lease assets		998,305	132,219	(18,706	)	(177,475	)	(1,994	)	38,285		970,634
Bearer plants		137,331	—	(27	)	(9,602	)	—		11,749		139,451
Construction-in-progress		6,333,673	7,634,826	(3,482	)	—		(128,119	)	(6,313,708	)	7,523,190
	~~W~~	35,206,248	8,066,740	(95,961	)	(3,489,133	)	(610,114	)	769,048		39,846,828
(*1)	Represents assets transferred from<br>construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign<br>currency translation differences and others.
---	---
(*2)	The Group calculated the net fair value of individual assets, such as steelmaking plant no. 1 and blast furnace<br>no. 4 in Pohang, whose operation was suspended due to operation plan changes, to estimate recoverable amount and recognized an impairment loss of ~~W~~227,239 million for property, plant and equipment during the year ended<br>December 31, 2024.
---	---
(*3)	The Group identified certain portion of the anode/cathode material assets that were in long-term idle status or<br>expected to fall short of the anticipated economic performance during the year ended December 31, 2024. The Group calculated the net fair value of such individual assets to estimate the recoverable amount and recognized an impairment loss of<br>~~W~~307,911 million for assets that the recoverable amounts are less than their carrying amounts.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

14. Property, Plant and Equipment (cont’d)

2)	For the year ended December 31, 2023
(in millions of Won)	Beginning		Acquisitions		*BusinessCombination(2)**		Disposals			Depreciation			*Impairmentloss(3,4)**			*Others(1)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land	~~W~~	3,103,165		83,489		32,565		(7,502	)		—			(5,471	)		83,998			3,290,244
Buildings		4,174,894		53,344		5,770		(14,619	)		(326,280	)		(28,614	)		563,137			4,427,632
Structures		3,162,927		16,498		3,651		(6,915	)		(261,970	)		(28,483	)		195,816			3,081,524
Machinery and equipment		16,422,830		211,181		—		(63,195	)		(2,401,947	)		(202,885	)		2,573,208			16,539,192
Vehicles		52,131		34,004		—		(782	)		(26,322	)		—			20,564			79,595
Tools		90,961		40,170		—		(607	)		(52,444	)		(77	)		50,862			128,865
Furniture and fixtures		173,345		36,975		655		(1,516	)		(61,947	)		(63	)		42,438			189,887
Lease assets		921,198		243,433		—		(15,095	)		(170,386	)		—			19,155			998,305
Bearer plants		141,720		—		—		—			(9,579	)		—			5,190			137,331
Construction-in-progress		3,538,025		6,388,837		—		(2,269	)		—			(8,420	)		(3,582,500	)		6,333,673
	~~W~~	31,781,196		7,107,931		42,641		(112,500	)		(3,310,875	)		(274,013	)		(28,132	)		35,206,248
(*1)	Represents assets transferred from<br>construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign<br>currency translation differences and others.
---	---
(*2)	Represents increases in property, plant and equipment upon reclassification of QSONE Co., Ltd., which was<br>previously an associate, into a subsidiary by acquiring additional shares during the year ended December 31, 2023.
---	---
(*3)	The Group estimated the recoverable amount after calculating the net fair value of individual assets whose<br>operation was suspended due to operation plan change, such as lithium production facilities in Gwangyang and Argentina, and recognized an impairment loss of ~~W~~196,207 million on property, plant and equipment whose recoverable<br>amount was less the book value.
---	---
(*4)	The Group estimated the recoverable amount after calculating the value in use of the hydrogen peroxide<br>manufacturing facility in Gwangyang, which had impairment indications due to changes in raw material prices and changes in production plans during the year ended December 31, 2023, and recognized an impairment loss of<br>~~W~~46,535 million on property, plant and equipment whose recoverable amounts was less than the book value.
---	---
(c)	Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2024 and<br>2023 are as follows:
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Weighted average expenditure	~~W~~	4,016,832		3,585,047
Borrowing costs capitalized		193,093		126,260
Capitalization rate (%)		0.70 ~ 5.78		1.53 ~ 6.91
(d)	Property, plant and equipment and investment property pledged as collateral as of December 31, 2024 and<br>2023 are as follows:
---	---
(in millions of Won)		Book value
---	---	---	---	---	---
	Collateral right holder	2024		2023
Land	Korean Development Bank and others	~~W~~	846,211		1,100,811
Buildings and structures	Korean Development Bank and others		1,303,216		1,410,864
Machinery and equipment	Korean Development Bank and others		1,828,174		2,014,210
Other property, plant and equipment	Korean Development Bank and others		34,614		—
		~~W~~	4,012,215		4,525,885

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

14. Property, Plant and Equipment (cont’d)

As of December 31, 2024, assets pledged as collateral related to the Group’s borrowings and others amounting to ~~W~~4,539,338 million include investment properties and other assets such as right to use land.

(e)	Changes in the carrying amount of right of use assets presented as investment property and property, plant and<br>equipment for the years ended December 31, 2024 and 2023 are as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Beginning		Acquisitions		Depreciation			Impairmentloss			Others			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land	~~W~~	363,789		1,542		(17,501	)		(1,994	)		3,082			348,918
Buildings and structures		151,366		58,116		(54,092	)		—			(643	)		154,747
Machinery and equipment		355,604		37,204		(47,797	)		—			1,631			346,642
Vehicles		48,228		12,501		(20,291	)		—			4,633			45,071
Ships		220,754		—		(24,684	)		—			—			196,070
Others		29,895		22,856		(19,657	)		—			(9,068	)		24,026
	~~W~~	1,169,636		132,219		(184,022	)		(1,994	)		(365	)		1,115,474
2)	For the year ended December 31, 2023
---	---
(in millions of Won)	Beginning		Acquisitions		Depreciation			Others			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---
Land	~~W~~	368,167		10,470		(15,582	)		734			363,789
Buildings and structures		163,648		49,929		(52,697	)		(9,514	)		151,366
Machinery and equipment		319,021		73,761		(55,481	)		18,303			355,604
Vehicles		18,652		38,410		(16,456	)		7,622			48,228
Ships		215,496		28,178		(22,920	)		—			220,754
Others		6,862		42,901		(12,885	)		(6,983	)		29,895
	~~W~~	1,091,846		243,649		(176,021	)		10,162			1,169,636
(f)	The amount recognized in profit or loss related to leases for the years ended December 31, 2024 and 2023<br>are as follows:
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Interest on lease liabilities	~~W~~	48,887		41,109
Expenses related to short-term leases		53,944		52,486
Expenses related to leases of low-value assets		25,968		20,103
	~~W~~	128,799		113,698

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

15. Goodwill and Other Intangible Assets

(a)	Goodwill and other intangible assets as of December 31, 2024 and 2023 are as follows:<br>
	2024										2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions of Won)	Acquisition cost		Accumulated<br>amortization andimpairment loss			Government<br>grants			Book value		Acquisition<br>cost		Accumulated<br>amortization andimpairment loss			Government<br>grants			Book value
Goodwill	~~W~~	1,722,390		(1,364,539	)		—			357,851		1,720,753		(1,317,581	)		—			403,172
Intellectual property rights		5,670,769		(2,423,252	)		—			3,247,517		5,167,677		(2,138,026	)		—			3,029,651
Membership		137,619		(1,511	)		—			136,108		141,306		(3,122	)		—			138,184
Development expense		742,816		(647,701	)		(74	)		95,041		758,878		(631,974	)		(86	)		126,818
Port facilities usage rights		681,530		(513,534	)		—			167,996		681,530		(499,119	)		—			182,411
Exploration and evaluation assets		276,599		(161,290	)		—			115,309		324,324		(160,878	)		—			163,446
Development assets		86,792		(81	)		—			86,711		10,235		—			—			10,235
Customer relationships		859,035		(713,336	)		—			145,699		865,753		(668,858	)		—			196,895
Other intangible assets		1,240,979		(818,341	)		(46	)		422,592		1,260,067		(796,052	)		(43	)		463,972
	~~W~~	11,418,529		(6,643,585	)		(120	)		4,774,824		10,930,523		(6,215,610	)		(129	)		4,714,784
(b)	The changes in carrying amount of goodwill and other intangible assets for the years ended December 31,<br>2024 and 2023 are as follows:
---	---
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Beginning		Acquisitions		Business<br>Combination		Disposals			Amortization			Impairmentloss			*Others(2)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Goodwill	~~W~~	403,172		—		282		—			—			(46,958	)		1,355			357,851
Intellectual property rights		3,029,651		353,175		—		(240	)		(272,730	)		—			137,661			3,247,517
Membership(*1)		138,184		1,716		—		(4,179	)		(180	)		29			538			136,108
Development expense		126,818		15,913		—		(22	)		(63,684	)		(692	)		16,708			95,041
Port facilities usage rights		182,411		—		—		—			(14,415	)		—			—			167,996
Exploratation and evaluation assets		163,446		21,024		—		—			—			—			(69,161	)		115,309
Development assets		10,235		543		—		—			(76	)		—			76,009			86,711
Customer relationships		196,895		—		—		—			(44,478	)		—			(6,718	)		145,699
Other intangible assets		463,972		118,563		—		(102,012	)		(58,126	)		(252	)		447			422,592
	~~W~~	4,714,784		510,934		282		(106,453	)		(453,689	)		(47,873	)		156,839			4,774,824
(*1)	Estimated useful life of membership is indefinite.
---	---
(*2)	Represents assets transferred from<br>construction-in-progress to intangible asset and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and<br>others.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)	Beginning		Acquisitions		Disposals			Amortization			*Impairmentloss(3)**			*Others(2)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Goodwill	~~W~~	442,487		—		—			—			(36,093	)		(3,222	)		403,172
Intellectual property rights		3,136,072		208,874		(5	)		(321,752	)		(89,986	)		96,448			3,029,651
Membership(*1)		132,942		7,360		(1,920	)		(170	)		11			(39	)		138,184
Development expense		116,171		13,130		(97	)		(73,319	)		—			70,933			126,818
Port facilities usage rights		197,211		—		—			(14,800	)		—			—			182,411
Exploratation and evaluation assets		100,991		67,000		—			—			(1,204	)		(3,341	)		163,446
Development assets		78,970		27,831		—			—			—			(96,566	)		10,235
Customer relationships		241,311		—		—			(44,478	)		—			62			196,895
Other intangible assets		392,296		139,100		(625	)		(43,674	)		(2,055	)		(21,070	)		463,972
	~~W~~	4,838,451		463,295		(2,647	)		(498,193	)		(129,327	)		43,205			4,714,784
(*1)	Estimated useful life of membership is indefinite.
---	---
(*2)	Represents assets transferred from<br>construction-in-progress to intangible assets and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and<br>others.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

15. Goodwill and Other Intangible Assets (cont’d)

(*3)	During the year ended December 31, 2023, POSCO Canada Ltd., a subsidiary, decided to make an investment in<br>kind by investing Greenhills Mine, which had been recognized as a joint operation, to a new partnership established by Teck Coal Partnership, the main operator. POSCO Canada Ltd. estimated the recoverable amount considering the fair value and<br>acquired shares of the new partnership, and recognized an impairment loss of ~~W~~88,518 million since recoverable amounts are less than their carrying amounts.
(c)	The Group’s cash generating units (CGUs) and carrying amounts of goodwill allocated to CGUs as of<br>December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---
		Total number of CGUs
Reporting<br><br><br>segments		2024		2023		CGUs	2024		2023
Steel			9		10	POSCO VST CO., LTD.	~~W~~	—		36,955
						POSCO Center Beijing		192		173
						Others		13,748		13,689
Infrastructure	Trading		5		5	POSCO INTERNATIONAL Corporation - Global Business Division(*1)		240,092		240,092
						POSCO INTERNATIONAL Corporation - Energy Division		26,471		26,471
						Others		8,205		7,531
	E&C		1		1	POSCO WIDE Co., Ltd		32,585		32,585
	Logistics,<br>etc		2		2	Shinan Green Energy Co., LTD.		108		9,821
Materials of Secondary Battery			3		3	POSCO FUTURE M CO., LTD		8,800		8,800
						POSCO Silicon Solution Co., Ltd		27,542		26,947
						Zhangjiagang Pohang Refractories Co., Ltd.		108		108
			20		21		~~W~~	357,851		403,172
(*1)	The recoverable amount of POSCO INTERNATIONAL Corporation – Global Business Division, a subsidiary in<br>trading segment of the infrastructure business, is determined based on its value in use by an independent external valuer. As of December 31, 2024, the value in use is estimated by applying an 7.37% (2023: 7.73%)<br>post-tax discount rate to the future cash flows estimated based on management’s 5-year business plan and terminal growth rate of 1.0% (2023: 1.0%) thereafter. The<br>terminal growth rate does not exceed long-term growth rate of its industry. No impairment loss on goodwill was recognized for the year ended December 31, 2024 as the recoverable amount exceeded the carrying amount of the CGU.<br>
---	---

The value in use of the CGU is sensitive to key assumptions such as discount rate, terminal growth and estimated revenue used in discount cash flow model. If the discount rate increases by 1%, the value in use would have decreased by ~~W~~884,800 million or 10.88%. If the terminal growth rate decreases by 1%, the value in use would have decreased by ~~W~~273,800 million or 3.36%.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

16. Other Assets

Other assets as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Advance payments	~~W~~	509,922	593,300
Prepaid expenses		259,145	226,960
Firm commitment asset		2,489	3,418
Other current assets		15,387	17,306
	~~W~~	786,943	840,984
Non-current
Long-term advance payments	~~W~~	33,308	46,989
Long-term prepaid expenses		20,689	30,232
Others		79,688	95,974
	~~W~~	133,685	173,195

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

17. Borrowings

(a)	Short-term borrowings and current portion of long-term borrowings as of December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Lenders	Issuance date		Maturity date		Interest rate (%)		2024			2023
Short-term borrowings
Bank overdrafts	JP Morgan and others		May, 2024~<br>December, 2024		January, 2025~<br>December, 2025		3.65 ~ 7.50	~~W~~	85,892			69,160
Short-term borrowings	HSBC and others		January, 2024~<br>December, 2024		January, 2025~<br>December, 2025		0.40 ~ 62.00		5,647,199			4,890,120
									5,733,091			4,959,280
Current portion of long-term liabilities
Current portion of long-term borrowings	Export-Import Bank of Korea and others		September, 2009~<br>December, 2024		January, 2025~<br>December, 2025		0.19 ~ 6.69		1,323,002			990,088
Current portion of debentures	KB Securities co.,Ltd. and others		July, 2015~<br>November, 2023		January, 2025~<br>December, 2025		1.68 ~ 5.81		4,024,084			3,255,375
Less: Current portion of discount on debentures issued									(3,483	)		(2,217	)
Current portion of exchangable bonds(*1)	Foreign currency exchangable bonds		September, 2021		September, 2026				39,053			1,756,691
									5,382,656			5,999,937
								~~W~~	11,115,747			10,959,217
(*1)	The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of December 31,<br>2024, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.
---	---
	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<br>maturity as a lump sum<br> <br>Prepayment : The issuer has call option and the bondholders have put option
Exchange rate	100%
Exchange price(*2) (Won/share)	437,491
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<br>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<br>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 put option exercised by bondholders, EUR 1,038,800,000 was redeemed out of the total face value of<br>convertible bonds of EUR 1,065,900,000 during the year ended December 31, 2024.
---	---
(*2)	The exchange price has changed due to cash dividends during the year ended December 31, 2024.<br>
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

17. Borrowings (cont’d)

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.

(b)	Long-term borrowings, excluding current portion as of December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)
---	---	---	---	---	---	---	---	---	---	---	---
	Lenders	Issuance date	Maturity date	Interest rate (%)		2024			2023
Long-term borrowings	Export-Import Bank of Korea and others	September, 2001~<br>December, 2024	January, 2026~<br>March, 2040		1.00 ~ 8.50	~~W~~	4,868,703			4,590,541
Less: Present value discount							(51,173	)		(9,414	)
Bonds	KB Securities co.,Ltd. and others	July, 2019~<br>October, 2024	January, 2026~<br>January, 2033		1.72 ~ 6.38		10,108,600			10,478,394
Less: Discount on debentures issued							(44,510	)		(48,359	)
						~~W~~	14,881,620			15,011,162
(c)	Assets pledged as collateral with regard to the borrowings as of December 31, 2024 are as follows:<br>
---	---
(in millions of Won)	Lenders	Book value		Pledged amount
---	---	---	---	---	---
Property, plant and equipment and Investment property	Korea Development Bank and others	~~W~~	4,008,404		4,537,287
Trade accounts and notes receivable	Korea Development Bank and others		120,161		120,161
Financial instruments	Korea Development Bank and others		15,444		15,444
		~~W~~	4,144,009		4,672,892

18. Other Payables

Other payables as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Accounts payable	~~W~~	1,652,957	1,174,097
Accrued expenses		1,275,068	1,046,891
Dividend payable		4,182	3,261
Lease liabilities		161,601	163,952
Withholdings		370,063	349,277
	~~W~~	3,463,871	2,737,478
Non-current
Accounts payable	~~W~~	6,096	14,143
Accrued expenses		11,979	8,073
Lease liabilities		744,500	760,368
Long-term withholdings		46,437	90,981
	~~W~~	809,012	873,565

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

19. Other Financial Liabilities

Other financial liabilities as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Derivative liabilities	~~W~~	108,786	38,631
Financial guarantee liabilities		4,972	5,114
Others(*1)		7,117	119,881
	~~W~~	120,875	163,626
Non-current
Derivative liabilities	~~W~~	2,236	81,291
Financial guarantee liabilities		8,944	7,858
Others		61,740	64,633
	~~W~~	72,920	153,782
(*1)	The Group has recognized other financial liabilities in connection with the put option agreement which POSCO<br>FUTURE MATERIALS CANADA INC., a subsidiary, has entered into with GM Battery Raw Materials Corporation for the year ended December 31, 2023. The put option agreement expired for the year ended December 31, 2024.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

20. Provisions

(a)	Provisions as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024				2023
---	---	---	---	---	---	---	---	---
	Current		Non-current		Current		Non-current
Provision for bonus payments	~~W~~	121,757		70,104		146,277		38,114
Provision for construction warranties		49,659		137,201		50,222		146,536
Provision for legal contingencies and claims(*1)		17,960		78,486		20,893		52,169
Provision for the restoration		10,041		197,810		14,567		161,253
Others(*2)		196,613		96,958		187,785		69,937
	~~W~~	396,030		580,559		419,744		468,009
(*1)	The Group recognized probable outflow of resources amounting to ~~W~~80,220 million and<br>~~W~~45,712 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of December 31, 2024 and 2023, respectively.
---	---
(*2)	According to the Act on the promotion of the development, use and diffusion of new and renewable energy,<br>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<br>as insufficient supply of power using new and renewable energy to be borne, and as of December 31, 2024 and 2023, the Group recognized ~~W~~64,249 million and ~~W~~64,166 million respectively, as provision.<br>
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

20. Provisions (cont’d)

(b)	The following are the key assumptions concerning the future and other key sources of estimation uncertainties<br>at the end of the reporting period.
	Key assumptions for the estimation
---	---
Provision for bonus payments	Estimations based on financial performance and service provided
Provision for construction warranties	Estimations based on historical warranty data
Provision for legal contingencies and claims	Estimations based on the degree of probability of an unfavorable outcome and the ability to make a sufficient reliable estimate of the amount of loss
(c)	Changes in provisions for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Beginning		Increase		Utilization			Reversal			*Others(1)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Provision for bonus payments	~~W~~	184,391		224,339		(187,004	)		(29,461	)		(404	)		191,861
Provision for construction warranties		196,758		53,244		(48,471	)		(8,274	)		(6,397	)		186,860
Provision for legal contingencies and claims		73,062		54,929		(12,964	)		(19,743	)		1,162			96,446
Provision for the restoration		175,820		28,917		(8,311	)		(6,485	)		17,910			207,851
Others		257,722		255,624		(151,362	)		(76,790	)		8,377			293,571
	~~W~~	887,753		617,053		(408,112	)		(140,753	)		20,648			976,589
(*1)	Includes adjusted foreign currency translation differences and others.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)	Beginning		Increase		Utilization			Reversal			*Others(1)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Provision for bonus payments	~~W~~	169,432		181,221		(158,529	)		(6,063	)		(1,670	)		184,391
Provision for construction warranties		205,974		42,653		(49,117	)		(8,350	)		5,598			196,758
Provision for legal contingencies and claims		106,341		16,327		(48,144	)		(3,599	)		2,137			73,062
Provision for the restoration		191,146		104,227		(9,887	)		(80	)		(109,586	)		175,820
Others		423,013		189,227		(255,001	)		(112,909	)		13,392			257,722
	~~W~~	1,095,906		533,655		(520,678	)		(131,001	)		(90,129	)		887,753
(*1)	Includes transfer to liabilities held for sale and adjusted foreign currency translation differences and<br>others.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

21. Employee Benefits

(a)	Defined contribution plans

The expenses related to post-employment benefit plans under defined contribution plans for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024		2023
Expense related to post-employment benefit plans under defined contribution plans	~~W~~	81,811		70,394
(b)	Defined benefit plans
---	---
1)	The amounts recognized in relation to net defined benefit assets in the consolidated statements of financial<br>position as of December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Present value of funded obligations	~~W~~	2,589,246			2,445,797
Fair value of plan assets(*1)		(2,962,342	)		(2,902,714	)
Present value of non-funded obligations		7,092			30,912
Net defined benefit liabilities	~~W~~	(366,004	)		(426,005	)
(*1)	As of December 31, 2024 and 2023, the Group recognized net defined benefit assets amounting to<br>~~W~~409,147 million and ~~W~~464,758 million, respectively, which represent the excess of each consolidated entity’s plan asset over the present value of defined benefit obligations.
---	---
2)	Changes in present value of defined benefit obligations for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Defined benefit obligations at the beginning of period	~~W~~	2,476,709			2,220,687
Current service costs		266,460			235,340
Interest costs		93,131			97,660
Remeasurements :		147,838			178,649
- Loss (gain) from change in financial assumptions		92,706			165,919
- Loss (gain) from change in demographic assumptions		2,700			(16,094	)
- Loss (gain) from change in others		52,432			28,824
Benefits paid		(336,899	)		(263,547	)
Others		(50,901	)		7,920
Defined benefit obligations at the end of period	~~W~~	2,596,338			2,476,709

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

21. Employee Benefits (cont’d)

3)	Changes in fair value of plan assets for the years ended December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Fair value of plan assets at the beginning of period	~~W~~	2,902,714			2,703,639
Interest on plan assets		112,768			126,386
Remeasurement of plan assets		20,345			22,400
Contributions to plan assets		251,891			279,225
Benefits paid		(279,304	)		(233,689	)
Others		(46,072	)		4,753
Fair value of plan assets at the end of period	~~W~~	2,962,342			2,902,714

The Group expects to make an estimated contribution of ~~W~~138,915 million to the defined benefit plan assets in 2025.

4)	The fair value of plan assets as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024		2023
---	---	---	---	---
Equity instruments	~~W~~	14,507		6,867
Debt instruments		404,311		529,313
Deposits		2,268,197		2,155,063
Others		275,327		211,471
	~~W~~	2,962,342		2,902,714
5)	The amounts recognized in consolidated statements of comprehensive income for the years ended December 31,<br>2024 and 2023 are as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Current service costs	~~W~~	266,460			235,340
Net interest costs(*1)		(19,637	)		(28,726	)
	~~W~~	246,823			206,614
(*1)	The actual return on plan assets amounted to ~~W~~133,113 million and<br>~~W~~148,786 million for the years ended December 31, 2024 and 2023, respectively.
---	---

The above expenses by function are as follows:

(in millions of Won)	2024
Cost of sales	~~W~~	155,146	135,687
Selling, administrative expenses and others		91,677	70,927
	~~W~~	246,823	206,614

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

21. Employee Benefits (cont’d)

6)	Accumulated actuarial gains (losses), net of tax recognized in other comprehensive income for the years ended<br>December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Beginning	~~W~~	(514,844	)		(396,296	)
Remeasurements of defined benefit plans		(95,345	)		(118,548	)
Ending	~~W~~	(610,189	)		(514,844	)
7)	The principal actuarial assumptions as of December 31, 2024 and 2023 are as follows:<br>
---	---
(%)	2024		2023
---	---	---	---	---
Discount rate		2.50 ~ 21.55		0.92 ~ 7.60
Expected future increase in salaries(*1)		1.50 ~ 29.32		2.30 ~ 28.11
(*1)	The expected future increases in salaries are based on the average salary increase rate over the past five<br>years.
---	---

All assumptions are reviewed at the end of the reporting period. Additionally, the total estimated defined benefit obligation includes actuarial assumptions associated with the long-term characteristics of the defined benefit plan

8)	Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding the<br>other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
(in millions of Won)	1% Increase						1% Decrease
---	---	---	---	---	---	---	---	---	---	---	---	---
	Amount			Percentage(%)			Amount			Percentage(%)
Discount rate	~~W~~	(158,250	)		(6.1	)		188,034			7.1
Expected future increase in salaries		185,594			7.1			(158,114	)		(6.1	)
9)	As of December 31, 2024, the maturity of the expected benefit payments are as follows:<br>
---	---
(in millions of Won)	Within<br>1 year		1 year<br>05 years		5 years<br>010 years		10 years<br>020 years		After<br>20 years		Total
---	---	---	---	---	---	---	---	---	---	---	---	---
Benefits to be paid	~~W~~	290,647		922,418		636,405		913,302		385,817		3,148,589

The maturity analysis of the defined benefit obligation was nominal amounts of defined benefit obligations using expected remaining period of service of employees.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

22. Other Liabilities

Other liabilities as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Current
Due to customers for contract work	~~W~~	491,495	624,632
Advances received		253,171	304,441
Unearned revenue		87,969	69,062
Withholdings		307,753	297,442
Firm commitment liability		10,384	20,136
Others(*1)		22,726	21,928
	~~W~~	1,173,498	1,337,641
Non-current
Unearned revenue	~~W~~	4,317	8,889
Others(*1)		94,942	105,583
	~~W~~	99,259	114,472
(*1)	As of December 31, 2024 and 2023, the Group recognized the assumed liability amounting to<br>~~W~~41,770 million and ~~W~~56,325 million, respectively, related to unfavorable terms of a customer contract relative to market-terms upon the acquisition of Senex Energy Limited by Senex Holdings PTY LTD, a<br>subsidiary.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments

(a) Classification and fair value of financial instruments

1)	The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy<br>as of December 31, 2024 and 2023 are as follows:

① December 31, 2024

(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~~	946,393		—		946,393		—		946,393
Short-term financial instruments		1,212,643		—		1,212,643		—		1,212,643
Equity securities		52,222		26,792		—		25,430		52,222
Debt securities		113,728		—		82,699		31,029		113,728
Other securities		762,177		—		—		762,177		762,177
Derivative hedging instruments(*2)		16,483		—		16,483		—		16,483
Fair value through other comprehensive income
Equity securities		1,119,322		703,181		—		416,141		1,119,322
Assets held for sale		604,439		604,439		—		—		604,439
Financial assets measured at amortized cost(*1)						—
Cash and cash equivalents		6,767,898		—		—		—		—
Trade accounts and notes receivable		9,374,217		—		—		—		—
Other receivables		2,739,523		—		—		—		—
Debt securities		402,644		—		—		—		—
Deposit instruments		6,445,428		—		—		—		—
	~~W~~	30,557,117		1,334,412		2,258,218		1,234,777		4,827,407
Financial liabilities
Fair value through profit or loss
Derivative liabilities	~~W~~	105,187		—		105,187		—		105,187
Borrowings		39,053		39,053		—		—		39,053
Derivative hedging instruments(*2)		5,835		—		5,835		—		5,835
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		6,161,177		—		—		—		—
Borrowings		25,958,314		—		26,166,994		—		26,166,994
Financial guarantee liabilities		13,916		—		—		—		—
Others		3,895,526		—		—		—		—
Other financial Liabilities		68,857		—		—		—		—
	~~W~~	36,247,865		39,053		26,278,016		—		26,317,069
(*1)	Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their<br>carrying amounts.
---	---
(*2)	The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the risk<br>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<br>exchange rate changes in foreign currency which influences cash flow from borrowings.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

② December 31, 2023

(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~~	291,541		—		291,541		—		291,541
Short-term financial instruments		6,540,407		—		6,540,407		—		6,540,407
Equity securities		99,254		61,665		—		37,589		99,254
Debt securities		88,196		—		75,183		13,013		88,196
Other securities		669,687		—		270		669,417		669,687
Derivative hedging instruments(*2)		9,601		—		9,601		—		9,601
Fair value through other comprehensive income
Equity securities		1,694,277		1,539,205		—		155,072		1,694,277
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		6,670,879		—		—		—		—
Trade accounts and notes receivable		9,155,853		—		—		—		—
Other receivables		2,750,036		—		—		—		—
Debt securities		295,201		—		—		—		—
Deposit instruments		4,423,327		—		—		—		—
	~~W~~	32,688,259		1,600,870		6,917,002		875,091		9,392,963
Financial liabilities
Fair value through profit or loss
Derivative liabilities	~~W~~	116,748		—		116,748		—		116,748
Borrowings		1,756,691		1,756,691		—		—		1,756,691
Other financial Liabilities		119,258		—		—		119,258		119,258
Derivative hedging instruments(*2)		3,174		—		3,174		—		3,174
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		5,782,825		—		—		—		—
Borrowings		24,213,688		—		24,310,166		—		24,310,166
Financial guarantee liabilities		12,972		—		—		—		—
Others		3,241,459		—		—		—		—
Other financial Liabilities		65,256		—		—		—		—
	~~W~~	35,312,071		1,756,691		24,430,088		119,258		26,306,037
(*1)	Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their<br>carrying amounts.
---	---
(*2)	The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the<br>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<br>foreign exchange rate changes in foreign currency which influences cash flow from borrowings.
---	---
2)	Financial assets and financial liabilities classified as fair value hierarchy Level 2<br>
---	---

Fair values of derivatives are measured using the derivatives instrument valuation models such as discounted cash flow method. Inputs of the financial instrument valuation model include forward rate, interest rate and others. The fair value of derivatives may change depending on the type of derivatives and the nature of the underlying assets.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

3)	Financial assets classified as fair value hierarchy Level 3
①	Valuation technique and significant but not observable inputs for the financial assets classified as fair value<br>hierarchy Level 3 as of December 31, 2024 are as follows:
---	---
(in millions of Won)	Fair value		Valuation technique	Inputs	Range of inputs	Effect on fair value assessmentwith unobservableinput
---	---	---	---	---	---	---
Financial assets at fair value	~~W~~	214,623	Discounted cash flows	Growth rate	0% ~ 1.00%	As growth rate increases, fair value increases
			Method	Discount rate	7.02% ~ 23.67%	As discount rate increases, fair value decreases
		104,121	Proxy firm valuation method	Price multiples	0.346 ~ 4.649	As price multiples increases, fair value increases
		95,866	Discounted cash flows	Growth rate	1%	As growth rate increases, fair value increases
			Method	Discount rate	14.90%	As discount rate increases, fair value decreases
			Binomial Option Pricing Model	Value of underlying asset	USD 1,910,715 thousands	Fair value increases when value of underlying asset increases
				Volatility	55%	Fair value increases when volatility increases
		984,628	Asset value approach	—	—	—
②	Sensitivity analysis of financial assets classified as Level 3 of fair value hierarchy<br>
---	---

If other inputs remain constant as of December 31, 2024 and one of the significant but not observable input is changed, the effect on fair value measurement is as follows:

(in millions of Won)	Input variable	Favorablechanges		Unfavorablechanges
Financial assets at fair value	Fluctuation 0.5% of growth rate	~~W~~	248		(244	)
	Fluctuation 0.5% of discount rate		1,421		(1,344	)
③	Changes in fair value of financial assets classified as Level 3 for the years ended December 31, 2024<br>and 2023 are as follows:
---	---
(in millions of Won)
---	---	---	---	---	---	---
	2024			2023
Beginning	~~W~~	875,091			861,674
Acquisition		398,296			100,442
Gain (loss) on valuations of financial assets		48,336			39,621
Other comprehensive income (loss)		(13,066	)		22,526
Disposal and others		(73,880	)		(149,172	)
Ending	~~W~~	1,234,777			875,091

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

4)	Finance income and costs by category of financial instrument for the years ended December 31, 2024 and<br>2023 are as follows:
①	For the year ended December 31, 2024
---	---
(in millions of Won)	Finance income and costs
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Interest income<br>(expense)			Gain and losson valuation			Gain and losson foreigncurrency			Gain and losson disposal			Others			Total			Other<br>comprehensive<br>income (loss)
Financial assets at fair value through profit or loss	~~W~~	—			120,544			—			136,699			887			258,130			—
Derivative assets		—			820,979			—			399,680			—			1,220,659			—
Financial assets at fair value through other comprehensive income		—			—			—			—			76,060			76,060			(150,443	)
Financial assets measured at amortized cost		576,782			—			1,098,245			(82,615	)		(10,613	)		1,581,799			—
Financial liabilities at fair value through profit or loss		—			239,120			(57,625	)		(6,257	)		—			175,238			—
Derivative liabilities		—			(31,018	)		—			(279,594	)		—			(310,612	)		(110	)
Financial liabilities measured at amortized cost		(1,051,511	)		—			(1,781,845	)		(806	)		(36,252	)		(2,870,414	)		—
	~~W~~	(474,729)			1,149,625			(741,225	)		167,107			30,082			130,860			(150,553	)
②	For the year ended December 31, 2023
---	---
(in millions of Won)	Finance income and costs
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Interest income(expense)			Gain and losson valuation			Gain and loss<br>on foreigncurrency			Gain and losson disposal			Others			Total			Other<br>comprehensive<br>income (loss)
Financial assets at fair value through profit or loss	~~W~~	—			520,884			—			190,531			560			711,975			—
Derivative assets		—			167,997			—			289,423			—			457,420			—
Financial assets at fair value through other comprehensive income		—			—			—			—			49,586			49,586			257,725
Financial assets measured at amortized cost		502,147			—			211,077			(84,649	)		(6,347	)		622,228			—
Financial liabilities at fair value through profit or loss		—			(305,562	)		(92,835	)		—			—			(398,397	)		—
Derivative liabilities		—			(44,323	)		—			(276,600	)		—			(320,923	)		(1,292	)
Financial liabilities measured at amortized cost		(1,001,290	)		—			(466,244	)		11			(26,616	)		(1,494,139	)		—
	~~W~~	(499,143)			338,996			(348,002	)		118,716			17,183			(372,250	)		256,433

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

(b)	Credit risk
1)	Credit risk exposure
---	---

The carrying amount of financial assets represents the Group’s maximum exposure to credit risk. The maximum exposure to credit risk as of December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Cash and cash equivalents	~~W~~	6,767,898	6,670,879
Derivative assets		962,876	301,142
Short-term financial instrument		1,212,643	6,540,407
Debt securities		516,372	383,397
Other securities		762,177	669,687
Other receivables		2,739,523	2,750,036
Trade accounts and notes receivable		10,849,398	11,057,819
Deposit instruments		6,445,428	4,423,327
	~~W~~	30,256,315	32,796,694

The Group provided financial guarantee for the repayment of loans of associates, joint ventures and third parties. As of December 31, 2024 and 2023, the maximum exposure to credit risk related to the financial guarantee amounted to ~~W~~3,832,003 million and ~~W~~3,939,463 million, respectively.

2)	Impairment losses on financial assets and contract assets

The Group assesses expected credit losses by estimating the default rate based on the credit loss experience of prior periods and overdue conditions and considers the credit default swap (CDS) premium to reflect changes in credit risk by sector. For credit-impaired assets and significant receivables where the credit risk is significantly increased, credit losses are individually assessed.

①	Allowance for doubtful accounts as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024		2023
---	---	---	---	---
Trade accounts and notes receivable	~~W~~	366,109		330,898
Other accounts receivable		219,811		185,987
Loans		510,036		417,725
Others		18,414		18,119
	~~W~~	1,114,370		952,729

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

②	Impairment losses on financial assets for the years ended December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Beginning	~~W~~	952,719			730,513
Bad debt expenses		134,230			(17,785	)
Other bad debt expenses(*1)		68,979			291,340
Less: Recovery of allowance for other bad debt accounts		(18,080	)		(7,641	)
Others(*2)		(23,478	)		(43,708	)
Ending	~~W~~	1,114,370			952,719
(*1)	Other bad debt expenses are mainly related to loans and other accounts receivable.
---	---
(*2)	Others for the years ended December 31, 2024 and 2023, decreased mainly due to write-off amounting to ~~W~~75,349 million and ~~W~~51,831 million, respectively.
---	---
③	The aging and allowance for doubtful accounts of trade accounts and notes receivable as of December 31,<br>2024 and 2023 are as follows:
---	---
(in millions of Won)	2024				2023
---	---	---	---	---	---	---	---	---
	Trade accounts<br>and notes<br>receivable		Allowance for<br>doubtful<br>accounts		Trade accounts<br>and notes<br>receivable		Allowance for<br>doubtful<br>accounts
Not due	~~W~~	9,438,292		8,774		9,886,572		13,155
Over due less than 1 month		496,419		4,555		681,782		5,448
1 month 03 months		272,977		3,087		131,267		3,521
3 months 012 months		187,461		22,340		291,774		27,248
Over 12 months		820,358		327,353		397,322		281,526
	~~W~~	11,215,507		366,109		11,388,717		330,898
④	The aging and allowance for doubtful accounts of other receivables as of December 31, 2024 and 2023 are as<br>follows:
---	---
(in millions of Won)	2024				2023
---	---	---	---	---	---	---	---	---
	Loans and<br>other account<br>receivable		Allowance for<br>doubtful<br>accounts		Loans andother accountreceivable		Allowance fordoubtfulaccounts
Not due	~~W~~	2,870,906		442,293		2,948,838		347,108
Over due less than 1 month		68,592		216		29,653		40
1 month 03 months		146,091		19,349		56,574		1,812
3 months 012 months		60,825		6,702		133,081		91,621
Over 12 months		341,370		279,701		203,712		181,240
	~~W~~	3,487,784		748,261		3,371,858		621,821

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

(c)	Liquidity risk
1)	Contractual maturities for non-derivative financial liabilities are as<br>follows:
---	---
(in millions of Won)	Book value		Contractualcash flow		Within1 year		1 year05 years		After5 years
---	---	---	---	---	---	---	---	---	---	---
Trade accounts and notes payable	~~W~~	6,161,177		6,161,177		6,159,127		2,050		—
Borrowings		25,997,367		27,408,042		11,144,580		14,496,260		1,767,202
Financial guarantee liabilities(*1)		13,916		3,832,003		3,832,003		—		—
Lease liabilities		906,101		1,188,386		200,917		516,389		471,080
Other financial liabilities		2,989,425		2,989,754		2,925,018		64,736		—
	~~W~~	36,067,986		41,579,362		24,261,645		15,079,435		2,238,282
(*1)	For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest<br>period in which the guarantee could be called.
---	---
2)	Contractual maturities for derivative financial liabilities are as follows:
---	---
(in millions of Won)	Within1 year		1 year05 years		Total
---	---	---	---	---	---	---
Currency forward	~~W~~	82,959		2,236		85,195
Currency swap		19,992		—		19,992
Others		5,835		—		5,835
	~~W~~	108,786		2,236		111,022

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

(d)	Currency risk
1)	The Group is exposed to the risk that the fair value or future cash flows of a financial instrument will<br>fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)				2023
---	---	---	---	---	---	---	---
		Liabilities		Assets		Liabilities
	5,441,771		10,927,022		4,979,817		11,146,695
	670,436		530,728		538,330		2,882,376
	303,556		213,071		343,321		264,563
Others	2,280,424		367,264		1,108,650		461,634

All values are in Euros.

2)	As of December 31, 2024 and 2023, provided that functional currency against foreign currencies other than<br>functional currency hypothetically strengthens or weakens by 10%, the changes in gain or loss for the years ended December 31, 2024 and 2023 are as follows:
(in millions of Won)						2023
---	---	---	---	---	---	---	---	---	---	---	---
			10% decrease			10% increase			10% decrease
	(548,525	)		548,525			(616,688	)		616,688
	13,971			(13,971	)		(234,405	)		234,405
	9,049			(9,049	)		7,876			(7,876	)

All values are in Euros.

(e)	Interest rate risk
1)	The carrying amount of interest-bearing financial instruments as of December 31, 2024 and 2023 are as<br>follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Fixed rate
Financial assets	~~W~~	16,067,746			19,118,092
Financial liabilities		(22,213,449	)		(19,237,434	)
		(6,145,703	)		(119,342	)
Variable rate
Financial liabilities	~~W~~	(4,690,019	)		(7,657,266	)

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

23. Financial Instruments (cont’d)

2)	Sensitivity analysis on the cash flows of financial instruments with variable interest rate<br>

The Group’s interest rate risk mainly arises from borrowings with variable interest rate. As of December 31, 2024 and 2023, provided that other factors remain the same and the interest rate of borrowings with floating rates increases or decreases by 1%, the changes in interest expense for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024				2023
	1% increase		1% decrease		1% increase			1% decrease
Variable rate financial instruments	~~W~~	(46,900)		46,900		(76,573	)		76,573
(f)	Supplier finance arrangement
---	---

As of December 31, 2024, the carrying amount of financial liabilities related to supplier finance arrangements entered into by the Group is as follows:

(in millions of Won)	2024
Trade accounts and notes payable	~~W~~	1,298,398
Accounts Payables		273,366
	~~W~~	1,571,764

There are no significant non-cash changes in the carrying amount of trade accounts and notes payable and accounts payable.

24. Share Capital and Capital Surplus

(a)	Share capital as of December 31, 2024 and 2023 are as follows:
(a)	Share capital
---	---
(Share, in Won)	2024		2023
---	---	---	---	---
Authorized shares		200,000,000		200,000,000
Par value	~~W~~	5,000		5,000
Issued shares(*1,2)		82,624,377		84,571,230
Shared capital(*2)	~~W~~	482,403,125,000		482,403,125,000
(*1)	As of December 31, 2024, total number of American Depository Receipts (ADRs) outstanding in overseas stock<br>market amounts to 13,149,016 and such ADRs are equivalent to 3,287,254 shares of common stock.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

24. Share Capital and Capital Surplus (cont’d)

(*2)	Pursuant to the resolution of the Board of Directors’ meeting on July 12, 2024, the Company decided<br>to retire 1,946,853 shares using distributable profits, and it was completed on August 6, 2024. As a result, as of December 31, 2024, the Company’s total number of issued shares has decreased.
(*3)	As of December 31, 2024, the difference between the ending balance of common stock and the aggregate par<br>value of issued common stock is ~~W~~69,281 million due to retirement of 13,856,248 treasury stocks.
---	---
(b)	The changes in issued common stock for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(share)	2024									2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued shares			Treasury shares			Number of<br>outstanding shares			Issued shares		Treasury shares			Number of<br>outstanding shares
Beginning		84,571,230			(8,695,023	)		75,876,207			84,571,230		(8,722,053	)		75,849,177
Acquisition of treasury shares		—			(255,428	)		(255,428	)		—		—			—
Disposal of treasury shares		—			—			—			—		27,030			27,030
Retirement of treasury shares		(1,946,853	)		1,946,853			—			—		—			—
Ending		82,624,377			(7,003,598	)		75,620,779			84,571,230		(8,695,023	)		75,876,207
(c)	Capital surplus as of December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Share premium	~~W~~	463,825		463,825
Gain on disposal of treasury shares		808,994		808,994
Other capital surplus		376,075		390,515
	~~W~~	1,648,894		1,663,334

25. Hybrid Bonds

(a)	POSCO FUTURE M CO., LTD, a subsidiary of the Group, issued hybrid bonds for the year ended December 31,<br>2024. The contents are as follows:
(in millions of Won)	Date of issue		Date of maturity		Interest rate (%)		2024		2023
---	---	---	---	---	---	---	---	---	---	---
Hybrid bond(*1)		2024-12-18		2054-12-18		4.64	~~W~~	600,000		—
(*1)	Details of issuance of hybrid bonds are as follows:
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

25. Hybrid Bonds (cont’d)

	KRW Hybrid bond
Maturity date	30 years (The issuer has a right to extend the maturity date)
Interest rate	Issue date ~ 2031-12-18 : 4.64%
	Reset every year: additionally +0.75% according to Step-up clauses
Interest payments condition	Quarterly (The issuer may defer interest payments except in cases where it resolves to pay dividends or repays pari passu debt and subordinated debt)
Others	The issuer can call the hybrid bond 5 years of after issuance
(b)	The hybrid bonds can be redeemed after a certain period has elapsed since the issuance date, and its maturity<br>can be extended under the same conditions on the maturity date. Additionally, as interest payments can be deferred, it is deemed that the issuer has an unconditional right to avoid delivering cash or other financial assets to settle the contractual<br>obligation. Accordingly, the Group has classified this bond as equity.
---	---
(c)	POSCO HOLDINGS INC., the controlling company, acquired ~~W~~500,000 million out of the<br>~~W~~600,000 million hybrid bonds issued by POSCO FUTURE M CO., LTD.
---	---

26. Other components of equity

(a)	Details of other components of equity as of December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Capital adjustment arising from investments in equity-accounted investees	~~W~~	76,870			(180,964	)
Changes in fair value of equity investments at fair value through other comprehensive<br>income		20,066			153,279
Foreign currency translation differences		983,071			94,605
Losses on valuation of derivatives		(925	)		(644	)
Others		76,347			980
	~~W~~	1,155,429			67,256
(b)	Changes in fair value of equity investments at fair value through other comprehensive income for the years<br>ended December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Beginning balance	~~W~~	153,279			(103,843	)
Changes in unrealized fair value of equity investments		(145,051	)		260,603
Reclassification upon disposal		11,838			—
Others		—			(3,481	)
Ending balance	~~W~~	20,066			153,279

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

27. 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 years ended December 31, 2024 and 2023 are as follows:

(shares, in millions of Won)	2024						2023
	Number of shares			Amount			Number of shares			Amount
Beginning		8,695,023		~~W~~	1,889,658			8,722,053		~~W~~	1,892,308
Acquisition of treasury shares		255,428			92,311			—			—
Disposal of treasury shares		—			—			(27,030	)		(2,650	)
Retirement of teasury shares		(1,946,853	)		(431,107	)		—			—
Ending		7,003,598		~~W~~	1,550,862			8,695,023		~~W~~	1,889,658

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

28. Revenue

(a)	Disaggregation of revenue

Details of revenue disaggregated by types of revenue and timing of revenue recognition for the years ended December 31, 2024 and 2023 are as follows:

1)	For the year ended December 31, 2024
(in millions of Won)			Infrastructure
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Steel		Trading		Construction		Logistics and others		Materials of<br>secondary battery		Others		Total
Types of revenue
Revenue from sales of goods	~~W~~	38,049,273		20,059,155		—		11,894		2,783,237		—		60,903,559
Revenue from services		889,556		2,736,866		127,572		363,384		3,676		3,579		4,124,633
Revenue from construction contract		—		—		7,281,149		—		25,636		—		7,306,785
Others		165,266		7,752		64,285		46,464		—		69,399		353,166
	~~W~~	39,104,095		22,803,773		7,473,006		421,742		2,812,549		72,978		72,688,143
Timing of revenue recognition
Revenue recognized at a point in time	~~W~~	38,214,539		20,066,907		337,363		58,358		2,783,237		69,399		61,529,803
Revenue recognized over time		889,556		2,736,866		7,135,643		363,384		29,312		3,579		11,158,340
	~~W~~	39,104,095		22,803,773		7,473,006		421,742		2,812,549		72,978		72,688,143
2)	For the year ended December 31, 2023
---	---
(in millions of Won)			Infrastructure
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Steel		Trading		Construction		Logistics and others		Materials of<br>secondary battery		Others		Total
Types of revenue
Revenue from sales of goods	~~W~~	39,435,236		20,973,059		—		17,923		3,775,215		—		64,201,433
Revenue from services		807,142		3,056,272		142,902		397,421		4,415		13,082		4,421,234
Revenue from construction contract		—		—		8,140,768		—		36,404		—		8,177,172
Others		150,895		4,175		17,460		55,269		8		99,551		327,358
	~~W~~	40,393,273		24,033,506		8,301,130		470,613		3,816,042		112,633		77,127,197
Timing of revenue recognition
Revenue recognized at a point in time	~~W~~	39,586,131		20,977,234		99,249		73,192		3,775,223		99,551		64,610,580
Revenue recognized over time		807,142		3,056,272		8,201,881		397,421		40,819		13,082		12,516,617
	~~W~~	40,393,273		24,033,506		8,301,130		470,613		3,816,042		112,633		77,127,197
(b)	Details of contract assets and liabilities from contracts with customers as of December 31, 2024 and 2023<br>are as follows:
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Receivables
Trade accounts and notes receivable	~~W~~	9,374,218		9,155,853
Contract assets
Due from customers for contract work		1,475,180		1,901,966
*Contract liabilities()**
Advance received		256,522		309,441
Due to customers for contract work		491,495		624,632
Unearned revenue		89,807		77,908
(*)	The details of the contract liabilities balance of POSCO Eco & Challenge Co., Ltd., a major<br>subsidiary, that were recognized as revenue for the years ended December 31, 2024 and 2023 are as follows.
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Contract liability balance at the beginning of the reporting period recognized as revenue	~~W~~	433,980		605,556

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

29. Contract under Input Method

(a)	Details of outstanding contracts as of December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024						2023
---	---	---	---	---	---	---	---	---	---	---	---	---
	Constructionsegment			Others			Constructionsegment			Others
Accumulated cost	~~W~~	27,830,242			262,814			28,663,723			272,321
Accumulated contract profit		1,903,582			43,690			2,499,061			36,954
Accumulated contract loss		(707,167	)		(1,930	)		(688,962	)		(8,916	)
Accumulated contract revenue		29,026,657			304,574			30,473,822			300,359
(b)	Details of due from customers for contract work and due to customers for contract work as of December 31,<br>2024 and 2023 are as follows:
---	---
(in millions of Won)	2024						2023
---	---	---	---	---	---	---	---	---	---	---	---	---
	Construction<br>segment			Others			Construction<br>segment			Others
Due from customers for contract	~~W~~	1,473,843			13,716			1,873,681			42,557
Due to customers for contract work		(479,546	)		(11,949	)		(608,339	)		(16,293	)
	~~W~~	994,297			1,767			1,265,342			26,264
(c)	Details of the provisions of construction loss as of December 31, 2024 and 2023 are as follows:<br>
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Construction segment	~~W~~	52,492		48,825
Others		857		1,749
	~~W~~	53,349		50,574
(d)	For the year ended December 31, 2024, the total contract revenues and the estimated total contract costs<br>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<br>contract revenue		Changes in estimated<br>total contract costs		Net<br>income			Future income (loss)		Total
Construction segment	~~W~~	1,337,838		1,579,751		(323,542	)		81,629		(241,913	)
Others		8,709		1,749		6,567			393		6,960
	~~W~~	1,346,547		1,581,500		(316,975	)		82,022		(234,953	)

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 December 31, 2024 and the estimated total contract revenue as of December 31, 2024. The estimated total contract costs and revenue are subject to change in future periods.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

29. Contract under Input Method (cont’d)

(e)	As of December 31, 2024, revenue expected to be recognized in the future in relation to performance<br>obligations that have not been fulfilled (or partially fulfilled) is as follows:
(in millions of Won)	2025		2026		2027		After 2028		Total
---	---	---	---	---	---	---	---	---	---	---
Construction segment	~~W~~	5,538,093		3,814,894		2,646,500		804,279		12,803,766
Others		13,528		9,380		10,454		—		33,362
	~~W~~	5,551,621		3,824,274		2,656,954		804,279		12,837,128
(f)	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 and others. There is an 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 the assumptions used in estimated contract costs at each reporting period end and adjusts them, if necessary.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

30. Selling and Administrative Expenses

(a)	Other administrative expenses

Other administrative expenses for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Wages and salaries	~~W~~	1,212,005	1,156,456
Expenses related to post-employment benefits		136,211	92,667
Other employee benefits		300,425	273,482
Travel		47,681	47,945
Depreciation		173,507	159,836
Amortization		113,130	96,004
Communication		13,472	11,956
Electricity		15,618	12,242
Taxes and public dues		94,658	100,639
Rental		45,440	48,243
Repairs		16,502	17,787
Entertainment		13,993	15,490
Advertising		102,271	107,223
Research & development		207,557	175,167
Service fees		268,701	234,815
Vehicles maintenance		7,880	7,660
Industry association fee		12,578	11,096
Conference		22,797	19,876
(Recovery of) Bad debt expenses		134,230	(17,785	)
Others		65,822	81,103
	~~W~~	3,004,478	2,651,902
(b)	Selling expenses
---	---

Selling expenses for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Freight and custody expenses	~~W~~	34,554	55,531
Operating expenses for distribution center		1,995	4,534
Sales commissions		102,114	68,138
Sales advertising		4,304	4,083
Sales promotion		9,887	9,503
Sample		2,436	2,234
Sales insurance premium		32,139	31,622
Contract cost		35,124	46,140
Others		12,335	11,794
	~~W~~	234,888	233,579

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

31. Research and Development Expenditures Recognized as Expenses

Research and development expenditures recognized as expenses for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Administrative expenses	~~W~~	207,557	175,167
Cost of sales		348,003	343,242
	~~W~~	555,560	518,409

32. Finance Income and Costs

Details of finance income and costs for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Finance income
Interest income	~~W~~	576,782	502,147
Dividend income		76,947	50,146
Gain on foreign currency transactions		1,419,887	1,660,713
Gain on foreign currency translations		1,187,507	292,581
Gain on derivatives transactions		437,999	333,197
Gain on valuations of derivatives		898,586	201,133
Gain on disposals of financial assets at fair value through profit of loss		164,556	203,795
Gain on valuations of financial assets at fair value through profit or loss		201,059	572,154
Gain on valuations of financial liabilities at fair value through profit or loss		239,120	—
Others		9,152	14,880
	~~W~~	5,211,595	3,830,746
Finance costs
Interest expenses	~~W~~	1,051,511	1,001,290
Loss on foreign currency transactions		1,448,214	1,595,430
Loss on foreign currency translations		1,900,405	705,866
Loss on derivatives transactions		317,913	320,374
Loss on valuation of derivatives		108,625	77,459
Loss on disposal of trade accounts and notes receivable		82,615	84,649
Loss on disposals of financial assets at fair value through profit or loss		27,857	13,264
Loss on valuations of financial assets at fair value through profit or loss		80,515	51,270
Loss on valuations of financial liabilities at fair value through profit or loss		—	305,562
Others		63,080	47,832
	~~W~~	5,080,735	4,202,996

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

33. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)	2024
Other non-operating income
Recovery of other bad debt expenses	~~W~~	18,080	7,641
Gain on disposals of investment in subsidiaries, associates and joint ventures(*1)		14,235	197,088
Gain on disposals of property, plant and equipment		26,533	9,387
Gain on valuation of firm commitment		46,918	11,499
Reversal of other provisions		15,834	8,578
Premium income		157,552	13,117
Gain on bargain purchase(*1)		—	41,072
Gain on disposals of emission rights		2	25,998
Others		107,951	87,606
	~~W~~	387,105	401,986
Other non-operating expenses
Other bad debt expenses	~~W~~	68,979	291,340
Loss on disposals of assets held for sale(*2)		33,943	103,366
Loss on disposals of investments in subsidiaries, associates and joint ventures		73,428	18,843
Loss on disposals of property, plant and equipment		85,149	125,823
Impairment loss on property, plant and equipment		608,122	275,846
Impairment loss on intangible assets		47,993	129,907
Loss on valuation of firm commitment		40,383	47,448
Idle tangible asset expenses		3,047	3,703
Increase to provisions		84,689	38,395
Donations		75,261	67,393
Others		62,882	93,619
	~~W~~	1,183,876	1,195,683
(*1)	During the year ended December 31, 2023, investments in QSONE Co., Ltd., which had been previously<br>classified as investments in associates were reclassified as investments in subsidiaries. As a result, the Group recognized ~~W~~184,556 million of gain on disposals of investment in associates and<br>~~W~~41,072 million of gain on bargain purchase.
---	---
(*2)	During the year ended December 31, 2023, the Group dispose of CSP—Compania Siderurgica do Pecem,<br>which was classified as assets held for sale, and recognized ~~W~~103,366 million of loss on disposals of assets held for sale. The loss on disposal of assets held for sale recognized as profit or loss includes<br>~~W~~102,470 million, which was reclassified from accumulated other comprehensive loss arising from translating the financial statements of foreign operation.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

34. 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 consolidated statements of comprehensive income for the years ended December 31, 2024 and 2023 are as follows (excluding finance costs and income tax expense):

(in millions of Won)	2024		2023
Raw material used, changes in inventories and others	~~W~~	42,161,756		46,249,994
Employee benefits expenses(*2)		5,075,621		4,660,771
Outsourced processing cost		10,333,545		10,377,087
Electricity and water expenses		1,200,587		1,099,970
Depreciation(*1)		3,530,770		3,325,088
Amortization		453,689		498,193
Freight and custody expenses		2,594,589		2,297,544
Sales commissions		102,114		68,138
Loss on disposal of property, plant and equipment		85,149		125,823
Impairment loss on property, plant and equipment		608,122		275,846
Impairment loss on intangible assets		47,993		129,907
Donations		75,261		67,393
Other expenses		5,429,250		5,615,703
	~~W~~	71,698,446		74,791,457
(*1)	Includes depreciation of investment property.
---	---
(*2)	The details of employee benefits expenses for the years ended December 31, 2024 and 2023 are as follows:<br>
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Wages and salaries	~~W~~	4,769,925		4,375,123
Expenses related to post-employment benefits		305,696		285,648
	~~W~~	5,075,621		4,660,771

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

35. Income Taxes

(a)	Income tax expense for the years ended December 31, 2024 and 2023 are as follows:
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Current income taxes(*1)	~~W~~	598,276			802,998
Deferred income tax due to temporary differences		(349,762	)		3,568
Items credited directly to equity		55,109			(17,261	)
Income tax expense	~~W~~	303,623			789,305
(*1)	Refund (additional payment) of income taxes as a result of a final corporation tax return, tax audits and<br>others credited (charged) directly to current income taxes.
---	---
(b)	The income taxes credited (charged) directly to equity for the years ended December 31, 2024 and 2023 are<br>as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Net changes in fair value of equity investments at fair value through other comprehensive<br>income(*1)	~~W~~	41,999			(71,600	)
Remeasurements of defined benefit plans(*1)		27,261			34,406
Others		(14,151	)		19,933
	~~W~~	55,109			(17,261	)
(*1)	Those amounts were recognized in other comprehensive income.
---	---

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

35. Income Taxes (cont’d)

(c)	The following table reconciles the calculated income tax expense to profit before income tax expense for the<br>years ended December 31, 2024 and 2023.
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Profit before income tax expense	~~W~~	1,251,204			2,635,154
Income tax expense computed at statutory rate		285,793			685,319
Adjustments:
Tax credit		(22,122	)		(82,233	)
Additional income tax expense for prior years		(77,482	)		152,656
Investment in subsidiaries, <br>associates and joint ventures		107,197			146,498
Tax effect due to permanent differences		(3,801	)		(3,011	)
Carryforward of unused tax losses		(19,545	)		(126,110	)
Effect of tax rate change		7,368			4,998
Others		26,215			11,188
		17,830			103,986
Income tax expense	~~W~~	303,623			789,305
Effective tax rate (%)		24.27	%		29.95	%

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

35. Income Taxes (cont’d)

(d)	The movements in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)	2024									2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Beginning			Increase(decrease)			Ending			Beginning			Increase(decrease)			Ending
Deferred income tax due to temporary differences
Allowance for doubtful account	~~W~~	156,608			30,864			187,472			130,501			26,107			156,608
PP&E and Intangible asset		239,702			47,225			286,927			382,838			(143,136	)		239,702
Share of profit or loss of equity-accounted investees		290,919			(5,965	)		284,954			269,638			21,281			290,919
Allowance for inventories valuation		63,187			(28,338	)		34,849			47,565			15,622			63,187
Prepaid expenses		13,553			1,389			14,942			16,923			(3,370	)		13,553
Gain or loss on foreign currency translation		143,239			74,341			217,580			(13,706	)		156,945			143,239
Defined benefit liabilities		(3,534	)		12,664			9,130			(40,417	)		36,883			(3,534	)
Provision for construction losses		11,669			668			12,337			17,949			(6,280	)		11,669
Provision for construction warranty		45,723			(2,482	)		43,241			70,271			(24,548	)		45,723
Accured income		(21,271	)		6,712			(14,559	)		(39,762	)		18,491			(21,271	)
Provision for accelerated depreciation		(2,660,730	)		33,443			(2,627,287	)		(2,736,674	)		75,944			(2,660,730	)
Spin-off		1,536,177			(558	)		1,535,619			1,543,628			(7,451	)		1,536,177
Others		275,829			(62,175	)		213,654			604,484			(328,655	)		275,829
		91,071			107,788			198,859			253,238			(162,167	)		91,071
Deferred income taxes recognized directly to equity
Net changes in fair value of equity investments at fair value through other comprehensive<br>income		(35,572	)		47,453			11,881			36,028			(71,600	)		(35,572	)
Others		47,288			13,110			60,398			(7,051	)		54,339			47,288
		11,716			60,563			72,279			28,977			(17,261	)		11,716
Deferred tax from tax credit
Tax credit carry-forward and others		253,559			130,817			384,376			71,364			182,195			253,559
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint ventures		217,686			50,594			268,280			224,021			(6,335	)		217,686
	~~W~~	574,032			349,762			923,794			577,600			(3,568	)		574,032

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

35. Income Taxes (cont’d)

(e)	Deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024								2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Asset		Liabilities			Net			Asset		Liabilities			Net
Deferred income tax due to temporary differences
Allowance for doubtful account	~~W~~	187,522		(50	)		187,472			156,681		(73	)		156,608
PP&E and Intangible asset		381,583		(94,656	)		286,927			337,094		(97,392	)		239,702
Share of profit or loss of equity-accounted investees		297,596		(12,642	)		284,954			304,225		(13,306	)		290,919
Allowance for inventories valuation		34,849		—			34,849			63,187		—			63,187
Prepaid expenses		16,366		(1,424	)		14,942			13,659		(106	)		13,553
Gain or loss on foreign currency translation		222,220		(4,640	)		217,580			205,170		(61,931	)		143,239
Defined benefit liabilities		612,680		(603,550	)		9,130			598,177		(601,711	)		(3,534	)
Provision for construction losses		12,337		—			12,337			11,669		—			11,669
Provision for construction warranty		43,241		—			43,241			45,723		—			45,723
Accured income		—		(14,559	)		(14,559	)		—		(21,271	)		(21,271	)
Provision for accelerated depreciation		—		(2,627,287	)		(2,627,287	)		—		(2,660,730	)		(2,660,730	)
Spin-off		1,538,619		(3,000	)		1,535,619			1,536,177		—			1,536,177
Others		298,149		(84,495	)		213,654			310,560		(34,731	)		275,829
		3,645,162		(3,446,303	)		198,859			3,582,322		(3,491,251	)		91,071
Deferred income taxes recognized directly to equity
Net changes in fair value of equity investments at fair value through other comprehensive<br>income		59,666		(47,785	)		11,881			50,134		(85,706	)		(35,572	)
Others		67,722		(7,324	)		60,398			76,604		(29,316	)		47,288
		127,388		(55,109	)		72,279			126,738		(115,022	)		11,716
Deferred tax from tax credit
Tax credit carry-forward and others		384,376		—			384,376			253,559		—			253,559
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint ventures		544,482		(276,202	)		268,280			499,326		(281,640	)		217,686
	~~W~~	4,701,408		(3,777,614	)		923,794			4,461,945		(3,887,913	)		574,032
(f)	As of December 31, 2024, deductible temporary differences of ~~W~~5,512,331 million and<br>taxable temporary differences of ~~W~~10,054,607 million related to investments in subsidiaries and associates were not recognized as deferred tax assets or liabilities because it is not probable that they will reverse in the<br>foreseeable future.
---	---
(g)	The Group recognized current tax payable or receivable at the amount expected to be paid or received that<br>reflects uncertainty related to income taxes.
---	---
(h)	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 Group calculated the Pillar Two income tax expense for the year ended December 31, 2024 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 Group reviewed subsidiaries qualifying as taxpayer, including the controlling company and, as a result, did not recognize any income tax expense for the year ended December 31, 2024 as the impact of the global minimum top-up tax on the consolidated financial statements as of December 31, 2024 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 top-up tax and does not disclose information related to deferred income tax.

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

36. Earnings Per Share

(a)	Basic earnings per share for the years ended December 31, 2024 and 2023 are as follows:<br>
(in Won except per share information)	2024		2023
---	---	---	---	---
Profit attributable to controlling interest	~~W~~	1,094,917,125,078		1,698,092,001,648
Weighted-average number of common shares outstanding(*1)		75,767,552		75,869,542
Basic earnings per share	~~W~~	14,451		22,382
(*1)	The weighted-average number of common shares used to calculate basic earnings per share is as follows:<br>
---	---
(shares)	2024			2023
---	---	---	---	---	---	---
Total number of common shares issued		83,761,569			84,571,230
Weighted-average number of treasury shares		(7,994,017	)		(8,701,688	)
Weighted-average number of common shares outstanding		75,767,552			75,869,542
(b)	The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of<br>December 31, 2024. The diluted earnings per share for the year as of December 31, 2023 is the same as the basic earnings per share due to the anti-dilutive effect. Diluted earnings per share for the year ended December 31, 2024 are<br>calculated as follows:
---	---
(in Won, except share information)
---	---	---	---
	2024
Profit attributable to controlling interest	~~W~~	1,094,917,125,078
Gain from exchange rate on and revaluation of exchangeable bonds		(139,569,768,850	)
Adjusted weighted-average number of common shares(*1)		77,990,432
Diluted earnings per share	~~W~~	12,250
(*1)	The adjusted weighted-average number of common shares outstanding to calculate diluted earnings per share are<br>as follows:
---	---
(shares)	2024
---	---	---
Weighted-average number of common shares outstanding		75,767,552
Weighted-average number of potential common shares		2,222,880
Adjusted weighted-average number of common shares		77,990,432

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

37. Related Party Transaction

(a)	Related **** parties of the Group as of December 31, 2024 are as follows:
Type	Company
---	---
Investments in associates and joint ventures	[Domestic]<br> <br>POSCO MC MATERIALS, Samcheok Blue<br>Power Co.,Ltd., SNNC and others.
	[Foreign]<br> <br>Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd,<br>South -East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG<br>LTD., Nickel Mining Company SAS and others.
(b)	Significant transactions between the Group and its related parties for the years ended December 31, 2024<br>and 2023 are as follows:
---	---
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	*Sales and others(1)**						Purchase and others
---	---	---	---	---	---	---	---	---	---	---
	Sales		Dividends		Others		Purchase of<br>material		Others
Associates and joint ventures
New Songdo International City Development, LLC	~~W~~	216,657		—		1,427		—		145
SNNC		121,658		—		8		377,168		3,620
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		43,098		—		—		781		—
Gunggi Green Energy		31,036		—		—		—		6,675
POS-SEAH STEEL WIRE(TIANJIN)CO.,Ltd		13,733		—		—		—		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		52,993		—		—		243		—
South-East Asia Gas Pipeline Company Ltd.		—		64,208		—		—		—
POSCO MC MATERIALS		137,209		1,800		—		8,107		526
Samcheok Blue Power Co., Ltd.		377,636		10,993		946		—		—
Pocheon-Hwado Highway Corp.		59,691		—		—		—		65
HBIS-POSCO Automotive Steel Co., Ltd		41,369		—		—		37,241		—
Roy Hill Holdings Pty Ltd		—		284,541		260		1,729,832		—
Others		421,095		149,647		4,434		520,477		255,084
	~~W~~	1,516,175		511,189		7,075		2,673,849		266,115
(*1)	As of December 31, 2024, the Group provides payment guarantees to related parties (see Note 38).<br>
---	---

100

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

37. Related Party Transaction (cont’d)

2)	For the year ended December 31, 2023
(in millions of Won)	Sales and others						Purchase and others
---	---	---	---	---	---	---	---	---	---	---
	Sales		Dividends		Others		Purchase of<br>material		Others
Associates and joint ventures
New Songdo International City Development, LLC	~~W~~	208,536		—		1,484		—		279
SNNC		164,827		—		87		637,638		1,749
Noeul Green Energy Co., Ltd.		6,499		—		28		—		10,320
POS-SEAH STEEL WIRE(TIANJIN)CO.,Ltd		14,477		—		—		—		—
POS-SeAH Steel Wire(Nantong) Co., Ltd.		43,811		—		—		73		—
South-East Asia Gas Pipeline Company Ltd.		—		59,295		—		—		—
POSCO MC MATERIALS		113,542		9,000		—		6,861		1,564
Samcheok Blue Power Co., Ltd.		503,283		10,020		—		—		—
Pocheon-Hwado Highway Corp.		160,233		—		—		—		—
Roy Hill Holdings Pty Ltd		—		367,445		—		1,611,073		—
Others		474,846		212,578		14,970		590,717		102,067
	~~W~~	1,690,054		658,338		16,569		2,846,362		115,979
(c)	The balances of receivables and payables arising from significant transactions between the Group and its<br>related parties as of December 31, 2024 and 2023 are as follows:
---	---
1)	December 31, 2024
---	---
(in millions of Won)	*Receivables(1)**								Payables
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Trade accounts<br>and notes<br>receivable		Loans		Others		Total		Trade accounts<br>and notes<br>payable		Others		Total
Associates and joint ventures
New Songdo International City Development, LLC	~~W~~	96,730		—		1,657		98,387		—		30,087		30,087
Gunggi Green Energy		5,846		—		10,706		16,552		—		567		567
POSCO(Guangdong) Automotive Steel Co., Ltd		46,547		6,162		—		52,709		48,866		—		48,866
AMCI (WA) PTY LTD		—		142,767		—		142,767		—		—		—
HBIS-POSCO Automotive Steel Co.,Ltd		13,924		—		—		13,924		5,483		1,922		7,405
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		5,970		—		—		5,970		—		—		—
Samcheok Blue Power Co., Ltd.		189,173		—		148		189,321		—		77,187		77,187
Nickel Mining Company SAS		—		68,793		122		68,915		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		19,628		—		—		19,628		—		—		—
POSCO MC MATERIALS		14,544		—		168		14,712		1,314		357		1,671
Pocheon-Hwado Highway Corp.		10,985		—		—		10,985		—		—		—
UITrans LRT Co., Ltd.		13,592		51,051		9,187		73,830		—		—		—
Roy Hill Holdings Pty Ltd		25,023		—		8,836		33,859		356,234		25		356,259
SNNC		12,861		—		70		12,931		10,322		1,298		11,620
FQM Australia Holdings Pty Ltd		—		292,764		—		292,764		—		—		—
Others		27,728		19,730		138,239		185,697		10,168		10,129		20,297
	~~W~~	482,551		581,267		169,133		1,232,951		432,387		121,930		554,317
(*1)	As of December 31, 2024, the Group recognized an allowance for doubtful account for receivables above<br>amounting to ~~W~~506,673 million.
---	---

101

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

37. Related Party Transaction (cont’d)

2)	December 31, 2023
(in millions of Won)	*Receivables(1)**								Payables
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Trade accounts<br>and notes<br>receivable		Loans		Others		Total		Trade accounts<br>and notesreceivable		Others		Total
Associates and joint ventures
New Songdo International City Development, LLC	~~W~~	15,260		—		1,497		16,757		—		39,089		39,089
Gunggi Green Energy		10,714		—		8,450		19,164		—		149		149
POSCO(Guangdong) Automotive Steel Co., Ltd		59,910		—		3		59,913		52,961		—		52,961
AMCI (WA) PTY LTD		—		110,540		—		110,540		—		—		—
HBIS-POSCO Automotive Steel Co.,Ltd		21,912		—		103		22,015		1,805		8,837		10,642
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		4,086		—		—		4,086		—		—		—
Samcheok Blue Power Co., Ltd.		162,759		—		213		162,972		—		9,605		9,605
Nickel Mining Company SAS		—		64,197		582		64,779		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		14,162		—		—		14,162		—		—		—
POSCO MC MATERIALS		13,835		—		82		13,917		1,156		—		1,156
Pocheon-Hwado Highway Corp.		33,944		—		—		33,944		—		7,712		7,712
UITrans LRT Co., Ltd.		—		46,335		8,395		54,730		—		2,398		2,398
Roy Hill Holdings Pty Ltd		88,217		—		22,002		110,219		263,440		—		263,440
SNNC		15,072		—		60		15,132		25,352		1,731		27,083
FQM Australia Holdings Pty Ltd		—		256,938		1,394		258,332		—		—		—
Others		17,499		16,589		124,849		158,937		4,837		5,599		10,436
	~~W~~	457,370		494,599		167,630		1,119,599		349,551		75,478		425,029
(*1)	As of December 31, 2023, the Group recognized an allowance for doubtful account for receivables above<br>amounting to ~~W~~404,872 million.
---	---

102

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

37. Related Party Transaction (cont’d)

(d)	Major financial transactions between the Group and its related parties for the year ended December 31,<br>2024 and 2023 are as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Beginning		Lend		Collect			*Others(1)**			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---
Associates and joint ventures
UITrans LRT Co., Ltd.	~~W~~	46,335		4,718		—			(2	)		51,051
PT. Tanggamus Electric Power		4,826		—		(1,288	)		316			3,854
Nickel Mining Company SAS		64,197		—		—			4,596			68,793
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL		2,579		—		(1,379	)		270			1,470
Hyo-chun Co., Ltd.		2,382		—		—			—			2,382
AMCI (WA) PTY LTD		112,177		6,499		—			24,091			142,767
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD		5,158		—		—			478			5,636
FQM Australia Holdings Pty Ltd		256,938		3,126		—			32,700			292,764
POHANG E&E Co., LTD		1,646		1,582		—			—			3,228
POSCO(Guangdong) Automotive Steel Co., Ltd.		14,332		59,402		(68,294	)		722			6,162
Gale International Korea, LLC		—		100		—			—			100
P&O Chemical Co., Ltd.		—		3,060		—			—			3,060
	~~W~~	510,570		78,487		(70,961	)		63,171			581,267
(*1)	Includes adjustments of foreign currency translation differences and others.
---	---

2) For the year ended December 31, 2023

(in millions of Won)	Beginning
Associates and joint ventures
UITrans LRT Co., Ltd.	~~W~~	36,510	9,825	—		—	46,335
PT. Tanggamus Electric Power		5,014	—	(270	)	82	4,826
PT. Wampu Electric Power		3,988	—	(4,063	)	75	—
Nickel Mining Company SAS		63,024	—	(2,322	)	3,495	64,197
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL		3,802	—	(1,323	)	100	2,579
POS-SeAH Steel Wire (Thailand) Co., Ltd.		7,604	—	(7,828	)	224	—
AMCI (WA) PTY LTD		104,281	6,620	—		1,276	112,177
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD		10,138	—	(5,321	)	341	5,158
Hyo-chun Co., Ltd.		2,382	—	—		—	2,382
POS-AUSTEM Suzhou Automotive Co., Ltd		12,673	—	(13,219	)	546	—
FQM Australia Holdings Pty Ltd		247,868	2,637	—		6,433	256,938
POHANG E&E Co., LTD		100	1,546	—		—	1,646
POSCO(Guangdong) Automotive Steel Co., Ltd.		35,131	225,182	(246,259	)	278	14,332
	~~W~~	532,515	245,810	(280,605	)	12,850	510,570
(*1)	Includes adjustments of foreign currency translation differences and others.
---	---
(e)	For the years ended December 31, 2024 and 2023, there were additional investments in associates and joint<br>ventures. (See Note 11 “Investments in Associates and Joint ventures”)
---	---

103

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

37. Related Party Transaction (cont’d)

(f)	For the years ended December 31, 2024 and 2023, details of compensation to the Group’s key management<br>officers are as follows:
(in millions of Won)	2024		2023
---	---	---	---	---
Short-term benefits	~~W~~	190,253		199,608
Long-term benefits		9,858		9,641
Retirement benefits		29,261		38,934
	~~W~~	229,372		248,183

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.

38. 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 supports 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.

104

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

(b)	Details of guarantees
1)	Contingent liabilities on outstanding guarantees and others provided by the Group as of December 31, 2024<br>are as follows:
---	---
(in millions of Won)			Guarantee limit				Guarantee amount
---	---	---	---	---	---	---	---	---	---	---
Guarantor	Guarantee beneficiary	Financial institution	Foreign currency		Wonequivalent		Foreigncurrency		Wonequivalent
[The Company]
POSCO HOLDINGS INC.	POSCO Asia Co., Ltd.	Credit Agricole and others	USD	125,000,000		183,750		—		—
	POSCO Argentina S.A.U	HSBC and others	USD	1,079,900,000		1,587,453		745,941,390		1,096,533
POSCO	POSCO-VIETNAM Co., Ltd.	Shinhan Bank and others	USD	110,000,000		161,700		49,999,999		73,500
	POSCO ASSAN TST STEEL INDUSTRY Inc	Citibank and others	USD	122,850,000		180,590		122,850,000		180,590
	POSCO COATED STEEL (THAILAND) CO., LTD.	HSBC and others	THB	4,800,000,000		206,400		2,352,000,000		101,136
POSCO INTERNATIONAL Corporation	GOLDEN LACE POSCO INTERNATIONAL CO., LTD.	POSCO Asia Co., Ltd.	USD	13,200,000		19,404		11,000,000		16,170
	PT. Bio Inti Agrindo	BTPN and others	IDR	902,400,000,000		82,209		902,400,000,000		82,209
	POSCO ASSAN TST STEEL INDUSTRY	Woori Bank Hong Kong and others	USD	13,650,000		20,066		13,650,000		20,066
	POSCO INTERNATIONAL Deutschland GmbH	Bank Mendes Gans Amsterdam	USD	50,000,000		73,500		18,719,280		27,517
	POSCO INTERNATIONAL JAPAN Corp.							6,370,603		9,365
	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<br>C.V.							—		—
	POSCO INTERNATIONAL POLAND E-MOBILITY Sp.z.o.o							—		—
	POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD.	SC MALAYSIA	USD	5,000,000		7,350		5,000,000		7,350
	PT. KRAKATAU POSCO ENERGY	POSCO Asia Co., Ltd. and others	USD	102,903,407		151,268		41,301,000		60,712
	POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE<br>C.V.	Export-Import Bank of Korea and others	USD	31,054,800		45,651		30,379,000		44,657
	PT POSCO INTERNATIONAL ENP INDONESIA	PT Bank Negara Indonesia	USD	750,000		1,103		750,000		1,103
POSCO Eco & Challenge Co., Ltd.	POSCO E&C Vietnam Co., Ltd.	POSCO Asia Co., Ltd.	USD	13,000,000		19,110		13,000,000		19,110
POSCO STEELEON CO.,LTD.	Myanmar POSCO C&C Company, Limited.	POSCO Asia Co., Ltd.	USD	13,986,947		20,561		13,986,947		20,561
POSCO FUTURE M CO., LTD.	ULTIUM CAM LIMITED PARTNERSHIP	Investissement Quebec, Strategic Innovation Fund	CAD	299,562,500		306,740		232,265,400		237,830
[Associates and joint ventures]
POSCO HOLDINGS INC.	Nickel Mining Company SAS	SMBC	EUR	46,000,000		70,322		46,000,000		70,322
POSCO	POSUK Titanium LLP	Shinhan Bank	USD	12,750,000		18,743		12,750,000		18,743
POSCO INTERNATIONAL Corporation	GLOBAL KOMSCO Daewoo LLC	Hana Bank Bahrain	USD	6,650,000		9,776		5,950,000		8,747
POSCO Eco & Challenge Co., Ltd.	Chun-cheon Energy Co., Ltd	Kookmin Bank and others	KRW	149,200		149,200		126,360		126,360
[Others]
POSCO Eco & Challenge Co., Ltd.	Subcontractors for maintenance projects, etc.	Kookmin Bank and others	KRW	913,369		913,369		493,319		493,319
POSCO AUSTRALIA PTY LTD	Department of Trade and Investment (NSW Government) and others	Woori Bank and others	AUD	18,112,062		16,549		18,112,062		16,549
PT. Bio lnti Agrindo	KSU Mandob Sejatera	Bank Muamalat	IDR	80,000,000,000		7,288		22,933,333,333		2,089
POSCO COATED STEEL (THAILAND) CO., LTD.	AMATA NATURAL GAS DISTRIBUTION <br>COMPANY LIMITED and others	SC Bank	THB	54,569,000		2,346		54,569,000		2,346
	BUREAU OF INDIAN STANDARDS (BIS)	SC Bank	USD	10,000		15		10,000		15
POSCO Maharashtra Steel Private Limited	Gail India and others	HSBC and others	INR	833,764,043		14,329		833,764,043		14,330

105

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

2)	The details of credit enhancements by types of the Group’s PF business as of December 31, 2024 are as<br>follows:
①	Maintenance projects and others
---	---
a.	The information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund<br>supplementation is as follows:
---	---
(in millions of Won)									Balance of the loans
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Provider	*Projects(1)**	Borrower	Type	Credit enhancementmeasures	Agreedamount		Executedamount		Total		Within 3months		3~6months		6 months~1 year		1 year~2 years		2 years~3 years		After3 years
[The Company]
POSCO Eco & Challenge Co., Ltd.	Other projects	JB CLARK HILLS CORP	Main PF	Debt assumption	~~W~~	48,510		40,425		40,425		—		—		40,425		—		—		—
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.	Other projects	New Songdo International City Development, LLC	Mortgage loan	Debt assumption		494,000		294,900		294,900		—		66,400		—		—		228,500		—
[Others]
POSCO Eco & Challenge Co., Ltd.	Maintenance projects	Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc.	Main PF	Debt assumption		1,010,126		483,423		483,423		43,708		33,600		124,945		85,432		87,917		107,821
	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		36,000		11,430		11,430		—		—		11,430		—		—		—
	Other projects	Jeonju Eco-city	Main PF	Debt assumption		53,300		22,800		22,800		—		—		—		22,800		—		—
POSCO DX	Other projects	Jeonnong school keeper co. and others(*2)	Main PF	Supplemental<br>funding agreement		123,309		44,062		44,062		—		—		—		—		—		44,062
						1,317,735		656,715		656,715		43,708		33,600		136,375		108,232		87,917		246,883
					~~W~~	1,860,245		992,040		992,040		43,708		100,000		176,800		108,232		316,417		246,883
(*1)	The maintenance project mainly consists of reconstruction and condominium construction projects, and other<br>projects consist 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<br>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<br>~~W~~1,122,320 million, outstanding loan balance of ~~W~~404,459 million)
---	---
b.	The details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant of December 31, 2024 are as follows:
---	---
(in millions of Won)		Contract amount		*Contingency amount(1)(2)*		Balance of loans
---	---	---	---	---	---	---	---
Maintenance projects	Total amount	~~W~~	9,904,615		4,010,141		2,088,579
	Amount attributable to the Group		6,921,795		2,788,107		1,314,376
(*1)	The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~41,065 million for the maintenance projects.
---	---
(*2)	In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>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 responsibility completion.
---	---

106

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

c.	The details of contingencies of claim for damages in the event of<br>non-compliance with construction completion covenant as of December 31, 2024 are as follows:
(in millions of Won)	Number of constructions	Contract amount		*Contingency amount(1)(2)*		Balance of loans
---	---	---	---	---	---	---	---
Maintenance projects	Total amount	~~W~~	305,519		76,000		20,000
	Amount attributable to the Group		305,519		76,000		20,000
Other projects	Total amount		11,899,491		11,618,900		7,722,354
	Amount attributable to the Group		11,002,354		11,260,970		7,405,322
	Total amount		12,205,010		11,694,900		7,742,354
	Amount attributable to the Group	~~W~~	11,307,873		11,336,970		7,425,322
(*1)	The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~106,430 million for the maintenance projects.
---	---
(*2)	In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>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 responsibility completion.
---	---
②	SOC projects
---	---
(in millions of Won)
---	---	---	---	---	---	---	---	---
Provider	Recipient	Credit enhancementmeasures	Number ofconstructions		Approvedamount		Remaining balanceafter repayment
[Associates and joint ventures]
POSCO DX	UITrans LRT Co., Ltd(*1)	Providing funds and debt assumption		2	~~W~~	81,883		28,371
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		24,923		22,323
POSCO Eco & Challenge Co., Ltd.	UITrans LRT Co., Ltd(*1)	Providing funds and debt assumption		2		205,051		142,081
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		319,526		286,182
	POHANG E&E Co., LTD(*3)	Providing funds and supplemental funding agreement		2		71,930		45,064
	Pureun Tongyeong Enviro Co., Ltd.(*3)	Providing funds		1		22,714		10,924
	Pure Gimpo.Co.,Ltd(*3)	Providing funds		1		51,565		23,223
	Clean Iksan Co.,Ltd(*3)	Providing funds		1		44,054		22,140
				11		821,646		580,308
[Others]
POSCO DX	Western Inland highway CO.,LTD.	Providing funds		1		47,348		30,376
POSCO Eco & Challenge Co., Ltd.	Western Seoul highway CO.,LTD. and others	Supplemental funding agreement		11		62,720		29,391
	Western Inland highway CO.,LTD. and others	Providing funds		42		2,753,470		1,459,302
	Pohang Youngil Bay New Port	Debt assumption		1		2,250		1,440
	Busan Sanseong Tunnel	Refinancing		1		26,750		26,750
				56		2,892,538		1547259
				67	~~W~~	3,714,184		2,127,567
(*1)	The Group provides a funding commitment of ~~W~~71,034 million (including other shares:<br>~~W~~249,700 million) equivalent to the Group’s shares of the loan balance for the private investment project.
---	---
(*2)	The Group provides a funding commitment of ~~W~~308,505 million (including other shares:<br>~~W~~558,077 million) equivalent to the Group’s shares of the loan balance for the private investment project.
---	---
(*3)	The Group provides a funding commitment of ~~W~~98,079 million (including other shares:<br>~~W~~179,179 million) equivalent to the Group’s shares of the loan balance for the private investment project.
---	---

107

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

3)	Other guarantees
①	As of December 31, 2024, the payment guarantees that the Group provides to clients, such as contract<br>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 Eco & Challenge Co., Ltd.	Ventanas Philippines Construction Inc	Guarantee on performance for contracts and others	~~W~~	11,476		11,476	Credit Agricole and others
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.	PT.Tanggamus Electric Power	Letter of credit		2,998		2,998	Hana Bank
	PT. Wampu Electric Power	Letter of credit		2,646		2,646	Hana Bank
				5,644		5,644
[Others]
POSCO Eco & Challenge Co., Ltd.	DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd	Guarantee on performance for construction		8,429,886		8,425,499	Construction Guarantee Cooperative
POSCO WIDE Co., Ltd	Human Eco-Land Co., Ltd.	Guarantee on performance and others		3,154		3,154	Seoul Guarantee Insurance
POSCO M-TECH	KOREA AEROSPACE INDUSTRIES, LTD. and others	Guarantee on performance		3,080		3,080	Seoul Guarantee Insurance
Shinan Green Energy Co.,LTD.	Shinan-gun, Jeollanam-do	Guarantee on performance		2,963		2,963	Seoul Guarantee Insurance
Korea Fuel Cell	Korea Western Power Co., Ltd	Guarantee on performance		1,685		1,685	Seoul Guarantee Insurance
				8,440,768		8,436,381
			~~W~~	8,457,888		8,453,501
②	As of December 31, 2024, the primary payment guarantees and other guarantees that the Group is provided<br>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~~	7,286,664		7,286,664
Engineering guarantee insurance	Guarantee on performance for EPC contracts and others		901,168		513,163
Seoul Guarantee Insurance	Construction performance guarantee and others		567,904		567,904
Korea Housing & Urban Guarantee Corporation	Housing Guarantee and others		7,436,886		7,429,429
Woori Bank and others	Foreign currency guarantee		2,046,468		885,486
Korea software financial cooperative	Guarantee on performance for contracts		126,983		126,983
Seoul Guarantee Insurance	Guarantee on performance and others		45,630		45,630
Construction Guarantee Cooperative	Guarantee on performance		4,337		4,337
		~~W~~	18,416,040		16,859,596

108

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

(c)	Other commitments

Details of other commitments of the Group as of December 31, 2024 are as follows:

Company	Description
POSCO HOLDINGS INC.	As of December 31, 2024, 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<br>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<br>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 December 31, 2024, the ending balance of the borrowing amounts to USD<br>1.02 million.
	POSCO HOLDINGS INC. has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of December 31, 2024.
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<br>provide for periodic price adjustments based on the market price. As of December 31, 2024, 80 million tons of iron ore and 7 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 annually for 20 years commencing in August 2005. The purchase contract period and volume<br>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 December 31, 2024, there are 36 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<br>changes of U.S. Henry Hub Natural Gas Spot Price. POSCO has extension option of extending the purchase contract by five years.
POSCO INTERNATIONAL Corporation	POSCO INTERNATIONAL Corporation operates a ship-to-ship business in which ships are chartered from ship’s owners and leased out to shippers. POSCO<br>INTERNATIONAL Corporation has entered into a ship purchase agreement with the ship owners and the shippers, which obliges the shippers to pay the agreed amount either at the end of the contract terms or at the agreed termination and to take over the<br>ownership of the vessel from the ship owners. Only if the shipper fails to fulfill its obligation including payment obligation for the purchase of the vessel, POSCO INTERNATIONAL Corporation is obliged to take over the ship based on the condition<br>that the shipper’s contractual obligations and rights are transferred to POSCO INTERNATIONAL Corporation. As of December 31, 2024, the shipper purchased one of the four chartered ship, resulting in the early termination of the ship<br>purchase agreement.
	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.<br>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<br>Holdings II Limited) in August 2020. KAC has the rights and obligations to the 15.33% stake held by AHL and AHL2.
POSCO Eco & Challenge Co., Ltd.	As of December 31, 2024, 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<br>investment, excess expenses occurred for business, and acceleration of payment.

109

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

(d)	Commitment for asset acquisition

The commitment amount for the acquisition of major assets that has not yet occurred as of December 31, 2024 is as follows:

(In millions of Won)	2024
Property, Plant and Equipment	~~W~~	5,853,808
Intangible Assets		27,859
Investments in associates and joint ventures		92,958
	~~W~~	5,974,625
(e)	Litigation in progress
---	---

As of December 31, 2024, pending litigations that POSCO HOLDINGS INC. and certain subsidiaries are defendants in legal actions arising from the normal course of business are as follows:

(in millions of Won, in thousands of foreign currencies)
Company	Legal actions	Claim amount			Won equivalent		Description
POSCO HOLDINGS INC.	4		KRW	522		522	Lawsuit on claim for damages and others
POSCO	172		KRW	457,313		457,313	Lawsuit on claim for employee right and others
POSCO INTERNATIONAL Corporation	4		KRW	968		968	Lawsuit on claim for damages and others
	2		INR	4,469,396		76,829	Lawsuit on claim for payment on guarantees and others
	6		USD	74,570		109,617	Lawsuit on claim for damages and others
	1		PKR	124,775		659	Lawsuit on claim for damages
POSCO Eco & Challenge Co., Ltd.	112		KRW	210,631		210,631	Lawsuit on claim for damages and others
POSCO DX	1		BRL	14,819		3,526	Lawsuit on claim for damages
	15		KRW	7,527		7,527	Lawsuit on claim for damages and others
POSCO FUTURE M CO., LTD.	3		KRW	2,664		2,664	Lawsuit on claim for damages and others
POSCO A&C	4		KRW	3,403		3,403	Lawsuit on claim for damages and others
POSCO WIDE Co., Ltd.	1		KRW	123		123	Lawsuit on claim for damages and others
POSCO Mobility Solution Corporation	1		KRW	82		82	Lawsuit on claim for damages and others
POSCO INTERNATIONAL TEXTILE LLC.	1		USD	2,389		3,512	Lawsuit on claim for contract settlement
POSCO ASIA COMPANY LIMITED	1		USD	80		117	Lawsuit on claim for damages and others
POSCO-China Holding Corp.	1		USD	1,290		1,896	Lawsuit on claim for damages and others
POSCO Engineering and Construction India Private Limited	2		INR	493,968		8,491	Lawsuit on claim for payment and others
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA.	53		BRL	180,818		43,024	Lawsuit on claim for payment on construction and others
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED	1		INR	54,420		935	Lawsuit on claim for damages
POSCO INTERNATIONAL AMERICA CORP.	1		USD	3,000		4,410	Lawsuit over contract dispute and others
POSCO SOUTH EAST ASIA PTE. LTD.	2		USD	15,900		23,373	Lawsuit over contract dispute and others
Brazil Sao Paulo Steel Processing Center	7		BRL	6,729		1,601	Lawsuit on claim for labor and others
POSCO Thainox Public Company Limited	2		THB	3,480		150	Lawsuit on invalidation of a check
POSCO ASSAN TST STEEL INDUSTRY Inc.	24		USD	92		135	Lawsuit on claim for labor and others

110

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

38. Commitments and Contingencies (cont’d)

(in millions of Won, in thousands of foreign currencies)
Company	Legal actions	Claimamount			Won equivalent		Description
POSCO Maharashtra Steel Private Limited	1		INR	9,500		163	Lawsuit on claim for labor and others
POSCO-India Private Limited	1		INR	2,466		42	Lawsuit on claim for wages
POSCO MPPC S.A. de C.V.	7		MXN	2,614		186	Lawsuit on claim for labor and others
POSCO(Chongqing) Automotive Processing Center Co., Ltd.	1		CNY	539		108	Lawsuit on claim for penalty payment
(*1)	The Group has recorded a provision for contingent losses for 58 lawsuits, including those related to guarantee<br>obligations, and reasonably estimating the likelihood of occurrence and the amount. (see Note 20)
---	---

As of December 31, 2024, the Group has determined that there are no present obligations resulting from pending litigations, other than those for which a provision for contingent losses has been established, and therefore has not recognized any provisions for these litigation cases.

(f)	Other commitment

Details of other commitment of the Group as of December 31, 2024 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.<br><br><br><br> <br>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 December 31, 2024, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 18 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and<br>others.
POSCO Eco & Challenge Co., Ltd.	As of December 31, 2024, POSCO Eco & Challenge Co., Ltd. has provided 38 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.
POSCO DX	As of December 31, 2024, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.

39. Statements of Cash Flows

(a)	Changes in operating assets and liabilities for the years ended December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Trade accounts and notes receivable	~~W~~	1,566,091			(1,127,629	)
Other receivables		(192,707	)		32,827
Inventories		218,506			1,383,720
Other current assets		(124,125	)		265,296
Other non-current assets		(11,645	)		(214,331	)
Trade accounts and notes payable		(376,277	)		(118,796	)
Other payables		56,936			(301,561	)
Other current liabilities		(375,368	)		(344,490	)
Provisions		(213,235	)		(318,955	)
Usable and profitable donation assets		101,557			—
Payments of severance benefits		(336,189	)		(263,548	)
Plan assets		27,413			(45,535	)
Other non-current liabilities		(4,089	)		(34,255	)
	~~W~~	336,868			(1,087,257	)

111

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

39. Statements of Cash Flows (cont’d)

(b)	Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023<br>are as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)	Liabilities												Derivativesthat hedgeborrowings
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Short-termborrowings			Long-termborrowings			Dividendpayable			Financeleaseliabilities
Beginning	~~W~~	4,959,280			21,011,099			3,261			924,320			(129,991	)
Changes from financing cash flows		(217,759	)		(1,633,370	)		(844,195	)		(195,367	)		181,397
Effect of changes in foreign exchange rates		991,570			1,102,079			991			(3,696	)		—
Changes in fair values		—			(239,120	)		—			—			(833,973	)
Loss on bond redemption		—			7,063			—			—			—
Other changes:
Decrease in retained earnings		—			—			758,124			—			—
Decrease in non-controlling interest		—			—			86,001			—			—
Interest expenses		—			16,525			—			48,625			—
Increase in lease assets		—			—			—			132,219			—
Ending	~~W~~	5,733,091			20,264,276			4,182			906,101			(782,567	)
2)	For the year ended December 31, 2023
---	---
(in millions of Won)	Liabilities												Derivativesthat hedgeborrowings
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Short-termborrowings			Long-termborrowings			Dividendpayable			Financeleaseliabilities
Beginning	~~W~~	6,833,120			17,472,542			4,371			823,482			(191,497	)
Changes from financing cash flows		(2,524,077	)		3,356,103			(825,495	)		(222,829	)		102,707
Effect of changes in foreign exchange rates		650,237			(139,863	)		—			38,909			—
Changes in fair values		—			305,562			—			—			(41,201	)
Other changes:
Decrease in retained earnings		—			—			720,770			—			—
Decrease in non-controlling interest		—			—			103,615			—			—
Interest expenses		—			16,755			—			41,109			—
Increase in lease assets		—			—			—			243,649			—
Ending	~~W~~	4,959,280			21,011,099			3,261			924,320			(129,991	)
(c)	Material non-cash transactions for the years ended December 31,<br>2024 and 2023 are as follows:
---	---
(in millions of Won)	2024			2023
---	---	---	---	---	---	---
Transfer of<br>construction-in-progress to property, plant and equipment and intangible assets	~~W~~	7,193,949			3,782,059
Changes in accounts payable related to acquisition of property, plant and equipment and intangible<br>assets		(181,188	)		(113,447	)
Retirement of treasury shares		431,107			—
	~~W~~	7,443,868			3,668,612

112

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

40. Operating Segments and Geographic Information

(a)	The Group’s operating businesses are distinguished based on the nature of markets and customers. The<br>assets, liabilities and profit or loss for each operating segment are generally measured based on the separate financial statements of the consolidated entities that make up each operating segment, which are prepared in accordance with KIFRS.<br>

Meanwhile, the Group has classified the operating segments as below. Also, businesses in which the subsidiaries in each segment operate 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
Materials of secondary battery		EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others		POSCO HOLDINGS. INC., Controlling company and Investment business
(b)	The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is<br>determined in the same way as the consolidated net income for the period, in accordance with KIFRS. The accounting policies applied to each segment are consistent with the accounting policies of the entities that make up the consolidated financial<br>statements. Segment assets and liabilities are generally measured based on the total assets and total liabilities in accordance with KIFRS before reflecting the consolidation adjustments allocated to the entity. Furthermore, segment assets and<br>liabilities are based on the separate financial statements of the consolidated entities, not on a consolidated basis. Transactions between reporting segments include various levels of inter-segment transactions, which encompass the disposal of<br>tangible assets and the provision of construction services, among others.
---	---
(c)	Information about reportable segments as of and for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
1)	As of and for the year ended December 31, 2024
---	---
				Infrastructure									Materials ofsecondary battery
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions of Won)	Steel			Trading			Construction			Logistics and others						Others			Total
External revenues	~~W~~	39,104,095			22,803,773			7,473,006			421,742			2,812,549			72,978			72,688,143
Internal revenues		23,096,825			20,099,480			2,356,572			3,717,459			1,017,302			2,038,172			52,325,810
Inter segment revenues		15,038,824			9,427,415			2,233,541			3,694,427			959,313			2,011,559			33,365,079
Total revenues		62,200,920			42,903,253			9,829,578			4,139,201			3,829,851			2,111,150			125,013,953
Interest income		279,469			72,208			158,867			18,902			47,525			85,128			662,099
Interest expenses		(699,586	)		(308,671	)		(146,885	)		(12,169	)		(117,040	)		(1,328	)		(1,285,679	)
Depreciation and amortization		(3,166,418	)		(492,626	)		(77,355	)		(61,578	)		(240,723	)		(19,964	)		(4,058,664	)
Impairment loss on property, plant and equipment and others		(273,160	)		(36,161	)		(8,420	)		(10,518	)		(331,717	)		(299	)		(660,275	)
Share of loss of equity-accounted investees, net		(321,718	)		(142,090	)		(111,476	)		—			(170,122	)		(392,074	)		(1,137,480	)
Income tax expense		(306,337	)		(189,573	)		(18,387	)		(46,996	)		203,475			62,923			(294,895	)
Segment profits (losses)		691,477			536,684			(194,292	)		104,022			(634,860	)		1,596,035			2,099,066
Segment total assets		66,585,437			21,012,507			9,270,877			2,592,169			15,090,058			50,946,666			165,497,714
Investment in subsidiaries, associates and joint ventures		4,339,321			3,080,324			276,994			12,165			2,397,830			45,407,650			55,514,284
Acquisition of non-current assets		3,589,327			916,654			29,033			252,499			4,717,540			256,826			9,761,879
Segment total liabilities		24,375,388			12,152,036			5,627,404			1,003,673			7,347,647			2,565,914			53,072,062

113

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

40. Operating Segments and Geographic Information (cont’d)

2)	As of and for the year ended December 31, 2023
				Infrastructure									Materials ofsecondary battery
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions of Won)	Steel			Trading			Construction			Logistics and others						Others			Total
External revenues	~~W~~	40,393,273			24,033,506			8,301,130			470,613			3,816,042			112,633			77,127,197
Internal revenues		23,145,425			18,910,246			1,966,373			3,475,340			1,005,844			1,449,581			49,952,809
Inter segment revenues		15,293,780			8,906,571			1,864,723			3,431,594			972,511			1,422,313			31,891,492
Total revenues		63,538,698			42,943,752			10,267,503			3,945,953			4,821,886			1,562,214			127,080,006
Interest income		281,530			66,398			100,682			15,837			39,339			73,550			577,336
Interest expenses		(718,937	)		(284,056	)		(105,102	)		(14,091	)		(57,638	)		(272	)		(1,180,096	)
Depreciation and amortization		(3,044,565	)		(508,161	)		(66,854	)		(54,219	)		(155,567	)		(16,126	)		(3,845,492	)
Impairment loss on property, plant and equipment and others		(305,437	)		(9,826	)		(28,031	)		—			(55,601	)		(10,657	)		(409,552	)
Share of income (loss) of equity-accounted investees, net		(182,668	)		(37,368	)		13,632			—			(67,248	)		(109,568	)		(383,220	)
Income tax expense		(595,457	)		(239,164	)		(95,364	)		(39,250	)		13,281			113,895			(842,059	)
Segment profits (losses)		1,241,211			723,929			183,453			170,959			(235,603	)		827,298			2,911,247
Segment total assets		66,224,069			19,650,557			9,631,691			2,476,842			10,909,515			51,957,529			160,850,203
Investment in subsidiaries, associates and joint ventures		3,855,038			2,933,140			481,672			9,999			1,550,524			45,084,972			53,915,345
Acquisition of non-current assets		3,748,163			553,955			119,438			137,237			2,795,447			162,639			7,516,879
Segment total liabilities		24,154,043			11,842,508			5,589,827			993,071			4,972,568			4,301,310			51,853,327
(d)	Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items<br>to their respective consolidated financial statement line items are as follows:
---	---

1) Revenues

(in millions of Won)	2024
Total revenue for reportable segments	~~W~~	125,013,953		127,080,006
Elimination of inter-segment revenue		(52,325,810	)	(49,952,809	)
	~~W~~	72,688,143		77,127,197

2) Profit

(in millions of Won)	2024
Total profit for reportable segments	~~W~~	2,099,066		2,911,247
Goodwill and corporate FV adjustments		(64,791	)	172,493
Elimination of inter-segment profit		(1,086,695	)	(1,237,891	)
Income tax expense		303,623		789,305
Profit before income tax expense	~~W~~	1,251,203		2,635,154

3) Assets

(in millions of Won)	2024
Total assets for reportable segments	~~W~~	165,497,714		160,850,203
Investment in subsidiaries, associates and joint ventures		(50,775,491	)	(48,895,081	)
Goodwill and corporate FV adjustments		2,543,165		2,630,009
Elimination of inter-segment assets		(13,861,189	)	(13,639,737	)
	~~W~~	103,404,199		100,945,394

4) Liabilities

(in millions of Won)	2024
Total liabilities for reportable segments	~~W~~	53,072,062		51,853,327
Goodwill and corporate FV adjustments		221,537		242,251
Elimination of inter-segment liabilities		(11,339,768	)	(10,814,081	)
	~~W~~	41,953,831		41,281,497

114

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

40. Operating Segments and Geographic Information (cont’d)

5) Other significant items

a)	2024
(in millions of Won)	Total segment			Goodwill and<br>corporate FV<br>adjustments			Elimination of<br>inter-segment<br>transactions			Consolidated
---	---	---	---	---	---	---	---	---	---	---	---	---
Interest income	~~W~~	662,099			—			(85,317	)		576,782
Interest expenses		(1,285,679	)		—			234,168			(1,051,511	)
Depreciation and amortization		(4,058,664	)		(86,358	)		160,562			(3,984,460	)
Share of profit(loss) of equity-accounted investees, net		(1,137,480	)		(50	)		881,072			(256,458	)
Income tax expense		(294,895	)		21,668			(30,396	)		(303,623	)
Impairment loss on property, plant and equipment and others		(660,275	)		(282	)		(13,198	)		(673,755	)
b)	2023
---	---
(in millions of Won)	Total segment			Goodwill and<br>corporate FV<br>adjustments			Elimination of<br>inter-segment<br>transactions			Consolidated
---	---	---	---	---	---	---	---	---	---	---	---	---
Interest income	~~W~~	577,336			—			(75,189	)		502,147
Interest expenses		(1,180,096	)		—			178,807			(1,001,289	)
Depreciation and amortization		(3,845,492	)		(99,347	)		121,559			(3,823,280	)
Share of profit(loss) of equity-accounted investees, net		(383,220	)		—			652,898			269,678
Income tax expense		(842,059	)		46,116			6,638			(789,305	)
Impairment loss on property, plant and equipment and others		(409,552	)		—			3,799			(405,753	)
(e)	Revenue by geographic area for the years ended December 31, 2024 and 2023 is as follows:<br>
---	---
(in millions of Won)	2024		2023
---	---	---	---	---
Domestic	~~W~~	45,960,140		50,658,510
Japan		2,814,631		2,691,788
China		5,737,686		6,152,191
Indonesia		3,156,962		3,422,647
Asia-other		7,382,157		7,287,382
North America		2,504,563		2,095,705
Europe		2,743,528		2,468,508
Others		2,388,476		2,350,466
	~~W~~	72,688,143		77,127,197

115

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

40. Operating Segments and Geographic Information (cont’d)

(f)	Non-current assets by geographic area as of December 31, 2024 and<br>2023 are as follows:
(in millions of Won)	2024		2023
---	---	---	---	---
Domestic	~~W~~	33,512,812		31,585,233
Japan		131,086		132,229
China		1,140,136		1,222,358
Indonesia		3,036,954		2,859,375
Asia-other		1,698,956		1,662,482
North America		1,857,787		526,654
Europe		302,775		268,787
Others		4,897,042		3,280,208
	~~W~~	46,577,548		41,537,326

Non-current assets by geographic area include investment property, property, plant and equipment, goodwill and other intangible assets.

(g)	There are no customers whose revenue is 10% or more of the consolidated revenue.

41. Events after the Reporting Period

(a)	Pursuant to the resolution of the Board of Directors on February 5, 2025, the Company decided to pay cash<br>dividends of ~~W~~2,500 per common share (total dividend: ~~W~~189.1 billion).
(b)	POSCO CNGR Nickel Solution, a subsidiary, decided to proceed with the dissolution and liquidation process<br>pursuant to the resolution of the shareholders’ meeting on February 11, 2025.
---	---
(c)	On February 17, 2025, the Company reported the issuance of unsecured senior dollar bonds (Global Bonds) to<br>the Ministry of Economy and Finance. The planned issuance amount is $700 million, with the nominal rate to be determined at the market rate at the time of issuance. The expected maturity is 5 to 10 years. These securities are scheduled to be<br>issued after the execution of the issuance agreement and pricing in April 2025.
---	---
(d)	Pursuant to the resolution of the Board of Directors on February 19, the Company decided to retire<br>1,691,425 treasury shares previously acquired (scheduled retirement amount: ~~W~~420.3 billion). The scheduled retirement date is March 31, 2025.
---	---
(e)	Starting in 2025, the Company applied for the consolidated tax filing system under the Corporate Tax Act,<br>whereby the Company and domestic subsidiaries are treated as a single tax entity, with income being aggregated for corporate tax purposes. This application was approved by the National Tax Service in February 2025.
---	---

116

POSCO HOLDINGS INC. and its Subsidiaries

Notes to the Consolidated Financial Statements, Continued

As of December 31, 2024 and 2023

41. Events after the Reporting Period (cont’d)

(f)	On January 14, 2025, POSCO, a subsidiary, issued unsecured bonds. Details of issuance are as follows:<br>
(in millions of Won)	314-1			314-2			314-3			314-4
---	---	---	---	---	---	---	---	---	---	---	---	---
Issuance amount	~~W~~	110,000			590,000			200,000			100,000
Annual interest rate		2.889	%		3.078	%		3.124	%		3.184	%
Maturity date		1/14/2027			1/14/2028			1/14/2030			1/14/2032
(g)	In February 2025, the U.S. government announced an executive order imposing a 25% tariff on all steel and<br>aluminum products, which will take effect on March 12, 2025. This announcement causes uncertainty in the estimation of the consolidated financial statements, and the Group is currently reviewing the related impact.
---	---

117

Audit opinion on internal control over financial reporting

The accompanying independent auditor’s report on internal control over financial reporting is attached as a result of auditing the internal control over financial reporting of POSCO HOLDINGS INC. (the “Company”) and its subsidiaries (collectively referred to as the “Group”) and the consolidated financial statements of the Group for the year ended December 31, 2024 in accordance with the Article 8 of the Act on External Audit of Stock Companies.

Attachments:

1.	Independent auditor’s report on internal control over financial reporting
2.	Reporting on the operating status of internal control over financial reporting
---	---

118

LOGO

Independent auditor’s report on internal control over financialreporting

(English translation of a report originally issued in Korean)

POSCO HOLDINGS INC.

The Shareholders and Board of Directors

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting (“ICFR”) of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the “Group”) based on the Conceptual Framework for Design and Operation of ICFR established by the Operating Committee of ICFR in the Republic of Korea (the “ICFR Committee”) as of December 31, 2024.

In our opinion, the Group’s ICFR has been effectively designed and operated, in all material respects, as of December 31, 2024, in accordance with the Conceptual Framework for Design and Operation of ICFR.

We also have audited, in accordance with Korean Standards on Auditing (“KSA”), the consolidated statement of financial position as of December 31, 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements , including a summary of material accounting policy information, of the Group, and our report dated March 12, 2025 expressed an unqualified opinion thereon.

Basis for opinion on ICFR

We conducted our audit in accordance with KSA. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of ICFR section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of ICFR in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of management and those charged with governance for ICFR

Management is responsible for designing, implementing and maintaining an effective ICFR, and for assessing the effectiveness of ICFR included in the accompanying Report on Operating Status of Internal Control over Financial Reporting.

Those charged with governance are responsible for overseeing the Group’s ICFR process.

Auditor’s responsibilities for the audit of ICFR

Our responsibility is to express an opinion on the Group’s ICFR based on our audit. We conducted our audit in accordance with KSA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR was maintained in all material respects.

An audit of the ICFR involves performing procedures to obtain audit evidence as to whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit also includes testing and evaluating the design and operation of ICFR based on obtaining an understanding of ICFR and the assessed risk.

119

LOGO

ICFR definition and inherent limitations

A company’s ICFR is implemented by those charged with governance, management, and other employees and is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”). A company’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with KIFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements of the consolidated financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that ICFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Yongwoo Lee.

Seoul, Korea

March 12, 2025

This audit report is effective as of the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have<br>occurred during the period from the independent auditor’s report date to the time this report is used. Such events and circumstances could significantly affect the Group’s ICFR and may result in modifications to this report.

120

Report on Operating Status of Internal Control overFinancial Reporting

English Translation of a Report Originally Issued in Korean

To the Shareholders, Board of Directors and Audit Committee of POSCO HOLDINGS INC.

We, as the Chief Executive Officer and the Internal Control Officer of POSCO HOLDINGS INC. and its subsidiaries (the “Group”), assessed the status of the design and operation of the Group’s Internal Control over Financial Reporting (“ICFR”) as of December 31, 2024.

The design and operation of ICFR is the responsibility of the Group’s management, including the Chief Executive Officer and the Internal Control Officer.

We assessed whether the Group’s ICFR has been effectively designed and operated in order to prevent and detect errors or fraud that may result in a misstatement of the consolidated financial statements to ensure preparation and disclosure of reliable consolidated financial statements.

We used, as the basis for the design and operation of the Group’s ICFR, the Conceptual Framework for Design and Operation of ICFR established by the Operating Committee of ICFR. In assessing the design and operation of ICFR, we used, as the evaluation criteria, the Standards for Evaluation of Reporting of ICFR established by the Operating Committee of ICFR.

Based on our assessment, we concluded that the Group’s ICFR is effectively designed and operated as of December 31, 2024, in all material respects, in accordance with the Conceptual Framework for Design and Operation of ICFR.

We certify that this report does not contain or present any untrue statement or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statement which might cause material misunderstanding of the readers, and we have reviewed and verified this report with due care.

January 24, 2025

/s/ Jeong, Ki-Seop, Chief Strategy Officer

/s/ Kim, Seung-Jun, Internal Control Officer

121