PKX 6-K

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 Seperate 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

Table of Contents

Exhibit 99.1

POSCO HOLDINGS INC.

Separate financial statements

For the year ended December 31, 2024

with the independent auditor’s report

Table of Contents

Table of Contents

		Page
Independent Auditor’s Report			1
Separate Financial Statements
Separate Statements of Financial Position			6
Separate Statements of Comprehensive Income			8
Separate Statements of Changes in Equity			9
Separate Statements of Cash Flows			10
Notes to the Separate Financial Statements			12
Independent Auditor’s Report on Internal Control over Financial Reporting			78
Report on the Operating Status of Internal Control over Financial Reporting			80

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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 separate financial statements of POSCO HOLDINGS INC. (the “Company”), which comprise the separate statement of financial position as of December 31, 2024, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the separate financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2024, and its separate financial performance and its separate 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 Company’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 separate financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the separate 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.

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Key audit matter

A key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the separate financial statements of the current period. This matter was addressed in the context of our audit of the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.

Assessment of impairment on investments in subsidiaries

As described in note 10 to the separate financial statements, the carrying amount of the Company’s investments in subsidiaries is ~~W~~42,787,174 million. The Company recognized ~~W~~180,456 million of impairment loss on investments in subsidiaries for the current period.

The Company identifies whether there is any indication for impairment over investments in subsidiaries every year and performs impairment test over investments in subsidiaries when an impairment indicator exists. The Company measures the impairment loss of investments subject to impairment as the difference between the greater of value-in-use and fair value less costs to sell and the carrying amount. Estimation of the value-in-use involves management’s significant judgment and assumptions such as estimated sales of such subsidiary and discount rate, and management bias may exist. Therefore, we have identified assessment of impairment on investments in subsidiaries as a key audit matter.

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

•	Understanding and assessing accounting policies and internal controls over the Company’s identification of<br>impairment indicator over investments in subsidiaries, impairment assessment, and evaluation of assessment result;
•	Evaluating the competence and objectivity of independent external experts involved by management for the<br>assessment;
---	---
•	Evaluating the reasonableness of estimated sales by comparing key assumptions used to calculate the estimated<br>sales of entities which issued respective investments with the latest business plan approved by management, historical performance and external data;
---	---
•	Evaluating the appropriateness of discount rates used in the valuation by comparing them against discount rates<br>that were independently recalculated using observable information;
---	---
•	Assessing the appropriateness of terminal growth rates by comparison with observable market information;<br>
---	---
•	Performing independent recalculation of the recoverable amount presented by management; and,<br>
---	---
•	Performing sensitivity analysis on the discount rates and terminal growth rates applied to assess the impact of<br>changes in these key assumptions on the results of management’s impairment assessments.
---	---

Other matter

The separate financial statements of the Company 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.

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Responsibilities of management and those charged with governance for the separate financial statements

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

In preparing the separate financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so.

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

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

Our objectives are to obtain reasonable assurance about whether the separate 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 separate 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 separate financial statements, whether due to fraud<br>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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we<br>are required to draw attention in our auditor’s report to the related disclosures in the separate 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 Company to cease to continue as a going concern.
---	---
•	Evaluate the overall presentation, structure and content of the separate financial statements, including the<br>disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
---	---

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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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate 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<br>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 separate financial<br>statements and may result in modifications to this report.

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POSCO HOLDINGS INC.

Separate financial statements

For the years ended December 31, 2024 and 2023

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

Jeong, Ki-Seop

Chief Strategy Officer

POSCO HOLDINGS INC.

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POSCO HOLDINGS INC.

Separate Statements of Financial Position

As of December 31, 2024 and 2023

(in millions of Won)		Notes			December 31,2024				December 31,2023
Assets
Cash and cash equivalents			4,5,21,35		~~W~~	409,387				376,914
Trade accounts and notes receivable, net			6,21,33,35			178,822				238,332
Other receivables, net			7,21,33,35			21,388				68,821
Other short-term financial assets			8,21,35			2,686,420				3,940,743
Assets held for sale			9			467,796				—
Current income tax assets			31			27,940				32,015
Other current assets			14			1,716				1,074
Total current assets						3,793,469				4,657,899
Other receivables, net			7,21,33			14,894				6,955
Other long-term financial assets			8,21			421,822				1,131,074
Investments in subsidiaries, associates and joint ventures			10			45,631,965				45,321,370
Investment property, net			11			328,372				309,900
Property, plant and equipment, net			12,35			415,993				197,787
Intangible assets, net			13,35			21,461				19,341
Other non-current assets			14			5,821				1,872
Total non-current assets						46,840,328				46,988,299
Total assets					~~W~~	50,633,797				51,646,198

(continued)

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POSCO HOLDINGS INC.

Separate Statements of Financial Position, Continued

As of December 31, 2024 and 2023

(in millions of Won)		Notes			December 31,2024			December 31,2023
Liabilities
Short-term borrowings and current installments of long-term borrowings			4,15,21,35		~~W~~	39,053			1,756,691
Other current payables			16,33,35			50,356			39,739
Other short-term financial liabilities			17,21			18,302			1,571
Provisions			18			46,268			14,983
Other current liabilities			20			8,852			6,686
Total current liabilities						162,831			1,819,670
Long-term borrowings, excluding current installments			4,15			1,500			1,316
Other non-current payables			16,21,33,35			30,783			26,804
Other long-term financial liabilities			17			—			6,968
Defined benefit liabilities, net			19			1,296			4,283
Deferred tax liabilities			31			2,246,030			2,281,500
Long-term provisions			18			—			2,634
Other non-current liabilities			20			2,327			3,158
Total non-current liabilities						2,281,936			2,326,663
Total liabilities						2,444,767			4,146,333
Equity
Share capital			22			482,403			482,403
Capital surplus			22			1,367,990			1,370,557
Accumulated other comprehensive income (loss)			23			(62,645	)		30,678
Treasury shares			24			(1,550,862	)		(1,889,658	)
Retained earnings			25			47,952,144			47,505,885
Total equity						48,189,030			47,499,865
Total liabilities and equity					~~W~~	50,633,797			51,646,198

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

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POSCO HOLDINGS INC.

Separate Statements of Comprehensive Income

For the years ended December 31, 2024 and 2023

(in millions of Won, except per share informations)		Notes		2024			2023
Operating revenue		26,33		~~W~~	1,997,128			1,454,079
Operating expenses		27			(400,707	)		(347,450	)
Operating profit					1,596,421			1,106,629
Finance income and costs
Finance income		21,28			482,945			315,828
Finance costs		21,28			(89,388	)		(405,881	)
Other non-operating income and expenses
Other non-operating income		29			3,249			23,469
Other non-operating expenses		29			(437,151	)		(356,322	)
Profit before income tax					1,556,076			683,723
Income tax benefit		31			65,206			115,854
Profit					1,621,282			799,577
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans		19			(3,948	)		(97	)
Net changes in fair value of equity investments at fair value through other comprehensive<br>income		8,23			(75,167	)		236,979
Total comprehensive income				~~W~~	1,542,167			1,036,459
Earnings per share (in Won)		32
Basic earnings per share (in Won)					21,398			10,539
Diluted earnings per share (in Won)				~~W~~	18,999			10,539

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

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POSCO HOLDINGS INC.

Separate Statements of Changes in Equity

For the years ended December 31, 2024 and 2023

(in millions of Won)		Sharecapital				Capitalsurplus			AccumulatedOtherComprehensiveIncome (loss)			Treasuryshares			Retainedearnings			Total
Balance as of January 1, 2023		~~W~~	482,403				1,360,894			(188,801	)		(1,892,308	)		47,409,675			47,171,863
Comprehensive income:
Profit			—				—			—			—			799,577			799,577
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax			—				—			—			—			(97	)		(97	)
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax			—				—			219,479			—			17,500			236,979
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends			—				—			—			—			(151,698	)		(151,698	)
Interim dividends			—				—			—			—			(569,072	)		(569,072	)
Disposal of treasury shares			—				2,880			—			2,650			—			5,530
Share-based payment			—				6,783			—			—			—			6,783
Balance as of December 31, 2023		~~W~~	482,403				1,370,557			30,678			(1,889,658	)		47,505,885			47,499,865
Balance as of January 1, 2024		~~W~~	482,403				1,370,557			30,678			(1,889,658	)		47,505,885			47,499,865
Comprehensive income:
Profit			—				—			—			—			1,621,282			1,621,282
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax			—				—			—			—			(3,948	)		(3,948	)
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax			—				—			(93,323	)		—			18,156			(75,167	)
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends			—				—			—			—			(189,691	)		(189,691	)
Interim dividends			—				—			—			—			(568,433	)		(568,433	)
Acquisition of treasury shares			—				—			—			(92,311	)		—			(92,311	)
Retirement of treasury shares			—				—			—			431,107			(431,107	)		—
Share-based payment			—				(2,567	)		—			—			—			(2,567	)
Balance as of December 31, 2024		~~W~~	482,403				1,367,990			(62,645	)		(1,550,862	)		47,952,144			48,189,030

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

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POSCO HOLDINGS INC.

Separate Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(in millions of Won)		Notes			2024			2023
Cash flows from operating activities
Profit					~~W~~	(3,948	)		799,577
Adjustments for :
Expenses related to post-employment benefit						6,438			7,568
Depreciation						14,272			11,310
Amortization						1,712			1,247
Impairment loss on other receivables						106			221,251
Finance income						(474,656	)		(308,827	)
Dividend income						(1,812,999	)		(1,254,239	)
Finance costs						79,200			401,716
Loss on disposal of property, plant and equipment						341			2,360
Impairment loss on property, plant and equipment						—			10,657
Gain on disposal of intangible assets						(141	)		—
Loss on disposal of intangible assets						266			—
Gain on disposal of investments in subsidiaries, associates and joint ventures						—			(230	)
Impairment loss on investments in subsidiaries, associates and joint venture						392,075			109,568
Loss on disposal of assets held for sale						—			998
Increase (decrease) to provisions						36,981			(7,303	)
Income tax benefit						(65,206	)		(115,854	)
Share-based payments expense						—			5,351
Others						(3	)		(11,632	)
Changes in operating assets and liabilities			35			2,023			(43,024	)
Interest received						92,618			45,517
Dividends received						1,866,004			1,188,338
Income taxes received						57,563			25,687
Net cash provided by operating activities					~~W~~	1,817,876			1,090,036

(continued)

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POSCO HOLDINGS INC.

Separate Statements of Cash Flows, Continued

For theyears ended December 31, 2024 and 2023

(in millions of Won)		Notes			2024				2023
Cash flows from investing activities
Decrease in deposit instruments					~~W~~	3,050,000				890,000
Proceeds from disposal of short-term financial instruments						5,471,006				6,255,711
Collection of short-term loans						—				1,249
Collection of long-term loans						—				2,000
Proceeds from disposal of equity securities						194,230				261,612
Proceeds from disposal of other securities						9,016				4,501
Proceeds from disposal of investments in subsidiaries, associates and joint ventures						590,429				957,353
Proceeds from disposal of intangible assets						1,677				—
Collection of short-term lease security deposits						491				—
Increase in deposits						(2,550,000	)			(2,640,002	)
Acquisition of short-term financial instruments						(4,619,699	)			(5,717,490	)
Increase in long-term loans						(106	)			—
Acquisition of other securities						(21,850	)			(26,282	)
Acquisition of investments in subsidiaries, associates and joint ventures						(1,263,572	)			(1,237,817	)
Acquisition of property, plant and equipment						(249,048	)			(102,192	)
Acquisition of intangible asstes						(6,209	)			(4,402	)
Acquisition of investment properties						(1,200	)			(54,892	)
Increase in short-term lease security deposits						(536	)			(691	)
Net cash provided by (used in) investing activities					~~W~~	604,629				(1,411,342	)
Cash flows from financing activities
Increase in long-term financial liabilities						3,148				3,781
Payment of cash dividends						(758,194	)			(720,762	)
Repayment of current installments of long-term borrowings						(1,542,400	)			—
Acquisition of treasury shares						(92,311	)			—
Net cash used in financing activities			35		~~W~~	(2,389,757	)			(716,981	)
Effect of exchange rate fluctuation on cash held						(275	)			—
Net increase (decrease) in cash and cash equivalents						32,473				(1,038,287	)
Cash and cash equivalents at beginning of the period			5			376,914				1,415,201
Cash and cash equivalents at end of the period			5		~~W~~	409,387				376,914

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

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements

As of December 31, 2024 and 2023

1. Reporting Entity

POSCO HOLDINGS INC., (the “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 through ownership of shares of subsidiaries etc.

On March 2, 2022, the Company established a new subsidiary, POSCO, by a vertical spin-off of its steel business (which is wholly owned by the surviving company) on March 1, 2022, and changed the name of the surviving company to POSCO HOLDINGS INC.

As of and for the year ended December 31, 2024, major shareholders are as follows:

Shareholder’s name		Number of shares			Ownership (%)
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			2.40
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 and for the years ended December 31, 2024, the shares of the Company are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

2. Basis of preparation

Statement of compliance

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

These financial statements are separate financial statements prepared in accordance with KIFRS 1027 “Separate Financial Statements” presented by a parent, an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost.

The separate 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.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

2. Basis of preparation (cont’d)

Basis of measurement

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

(a)	Financial instruments measured at fair value through profit or loss
(b)	Financial instruments measured at fair value through other comprehensive income
---	---
(c)	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

These separate financial statements are presented in Korean Won, which is the Company’s functional currency which is the currency of the primary economic environment in which the Company operates.

Use of estimates and judgments

The preparation of the separate financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

(a)	Judgments

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

•	Note 10—Investments in subsidiaries, associates and joint ventures

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

2. Basis of preparation (cont’d)

(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 10—Investments in subsidiaries, associates and joint ventures
•	Note 18—Provisions
---	---
•	Note 19—Employee benefits
---	---
•	Note 21—Financial Instruments
---	---
•	Note 31—Income taxes
---	---
•	Note 34—Commitments and contingencies
---	---
(c)	Measurement of fair value
---	---

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes 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 Company’s Audit Committee.

When measuring the fair value of an asset or a liability, the Company 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.<br>
•	Level 2 – inputs other than quoted prices included in Level 1 that are observable for the assets<br>or liabilities, either directly or indirectly.
---	---
•	Level 3 – inputs for the assets or liabilities that are not based on observable market data.<br>
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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

2. Basis of preparation (cont’d)

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

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 Company in the financial statements are the same as those applied to the separate 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 Company’s separate 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 right; 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 Company’s liabilities.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

2. Basis of preparation (cont’d)

(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 Company has provided additional disclosures about its supplier finance arrangements.

3. Material Accounting Policy Information

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

Investments in subsidiaries, associates and joint ventures

These separate financial statements are prepared and presented in accordance with KIFRS 1027 Separate Financial Statements. The Company applied the cost method to investments in subsidiaries, associates and joint ventures in accordance with KIFRS 1027.

Gain on disposals from share transactions between entities under common control is recognized as dividend income, and loss on disposals is recognized as acquisition cost of investments in the related entity.

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.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

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 Company 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

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through profit or loss.

•	it is held within a business model whose objective is to hold assets to collect contractual cash flows, and<br>
•	its contractual terms give rise on specified dates to cash flows that are solely payments of principal and<br>interest on the principal amount outstanding
---	---

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)	Debt instruments measured at fair value through other comprehensive income

A debt instrument is measured at fair value through other comprehensive income if it meets both of the following conditions and is not designated as at fair value through profit or loss.

•	it is held within a business model whose objective is achieved by both collection contractual cash flows and<br>selling financial assets and
•	its contractual terms give rise on specified dates to cash flows that are solely payments of principal and<br>interest on the principal amount outstanding
---	---

Debt instruments measured at fair value through other comprehensive income are subsequently measured at fair value. Interest income which is calculated using the effective interest method, gains and losses from foreign currency translation and impairment losses are recognized in profit or loss and other net profit or losses are recognized in other comprehensive income. At the time of elimination, other accumulated comprehensive income is reclassified to profit or loss.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

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

On initial recognition of an equity investment that is not held for trading, the Company 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.

(d)	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 Company 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.

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.

Assets held for sale

Non-current assets or disposal groups are classified as assets held for sale if their carrying amount is highly probable recovered primarily through a sale rather than through continued use. This condition is considered met only when the asset or disposal group is available for immediate sale in its present condition and when the sale is highly probable.

Prior to the initial classification as held for sale, the asset or disposal group is measured at the lower of its carrying amount and fair value less costs to sell. If the fair value less costs to sell of an asset initially classified decreases, an impairment loss is recognized immediately in profit or loss. Conversely, if the fair value less costs to sell increases, a reversal of the impairment loss is recognized in profit or loss, up to the cumulative amount of impairment losses previously recognized. Non-current assets classified as held for sale, or those that are part of a disposal group classified as held for sale, are not depreciated or amortized.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Investment property

Investment property is property held to earn rental income or for capital appreciation, or both. Investment property is measured initially at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses. The depreciation methods, useful lives and residual values of investment property are the same as those used for property, plant and equipment.

Property, plant and equipment

Property, plant and equipment are initially measured at cost. 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 Company 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.

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 Company 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.

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.

The estimated useful lives for the current period are as follows:

Buildings		5-40 years
Structures		5-40 years
Machinery and equipment		2,15 years
Vehicles		4 years
Fixtures		4 years

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Intangible assets

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

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 periods 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		5-7 years
Development expense		4 years
Other intangible assets		4 years

Government grants

Government grants whose primary condition is that the Company 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.

Leases

A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

1)	As a lessee

At inception or reassessment of a contract that contains a lease component, the Company 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 Company uses its incremental borrowing rate as the discount rate.

The Company 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 Company 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 separate statement of financial position.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

The Company 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 Company 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 Company 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 Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. As part of this assessment, the Company considers certain indicators such as whether the lease is for a major part of the economic life of the asset.

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

Impairment for financial assets

The Company recognizes loss allowances for expected credit losses on:

•	financial assets measured at amortized cost
•	debt instruments measured at fair value through other comprehensive income
---	---
•	contractual assets
---	---
(a)	Judgments on credit risk
---	---

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

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POSCO HOLDINGS INC.

Notes to the Separate 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 Company 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 Company has no reasonable expectations of recovering a financial asset in its entirety or a portion. The Company 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 Company 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 Company’s procedures for recovery of amounts due.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Impairment for non-financial assets

The carrying amounts of the Company’s non-financial assets, other than employee benefits 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. 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 recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

Non-derivative financial liabilities

The Company 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 Company recognizes financial liabilities in the separate statement of financial position when the Company becomes a party to the contractual provisions of the financial liability.

Employee benefits

The calculation of defined benefit liabilities is performed annually by an independent actuary using the projected unit credit method.

Provisions

Provision for restoration related to contaminated area is recognized when the area meets the Company’s policy and legal standards of contamination.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

Revenue from contracts with customers

As the Company vertically spun off its steel business at the spin-off date on March 1, 2022, the Company’s main business has changed from manufacturing and sales of steel, rolled products, and plates to investment business that controls and manages through ownership of shares of subsidiaries etc., and rental business for real estate, etc.

1)	Dividend income

Dividend income from subsidiaries and others is recognized as revenue when the Company’s right to receive the dividend is established.

2)	Rental income

Rental income from the Company’s real estate is recognized as revenue over the service offering period.

3)	Trademark usage income

Trademark usage income is recognized in accordance with the related arrangements over the term of use of trademark.

Finance income and finance costs

The Company’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;
---	---
•	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.

Income tax

The Company recognizes interest and penalties related to corporate tax as if it is applicable to the income taxes, the Company applies KIFRS 1012 Income Taxes, if it is not applicable to the income taxes, the Company applies KIFRS 1037 Provisions Contingent Liabilities and ContingentAssets.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

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 Company’s separate financial statements are disclosed below. The Company has not early adopted the new or amended standards in preparing these separate 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 the disclosure of information that enables users of its financial statements to understand how the currency that not being exchangeable into the other currency affects, or is expected to affect, the Company’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.

When applying the amendment, the Company cannot restate comparative information. The amendments are not expected to have a material impact on the Company’s separate 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 disclosure requirements. The Company does not plan to early adopt the amendments.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

3. Material Accounting Policy Information (cont’d)

(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 Company’s separate financial statements.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

4. Financial Risk Management

The Company 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 Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risks, and the Company’s capital management. Further quantitative disclosures are included throughout these separate financial statements.

(a) Financial risk management

1)	Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, 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 Company’s activities.

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

The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit rate evaluated based on financial condition, historical experience, and other factors. The Company’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 Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.

The Company 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.

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POSCO HOLDINGS INC.

Notes to the Separate 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 Company manages its exposure to this credit risk by only entering into transactions with banks that have high international credit ratings. The Company’s treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Company has no previous relationship.

Furthermore, the Company 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 Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’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 Company’s reputation.

The Company’s cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Company’s strategic investments. Management believes that the Company is capable of raising funds by borrowing or financing if the Company is not able to generate cash flow requirements from its operations. Meanwhile, the Company has entered into credit line agreements with multiple 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 Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Company, Korean Won. The Company monitors the related foreign currencies regularly in order to avoid exposure to currency risk.

②	Interest rate risk

The Company manages the exposure to interest rate risk by adjusting the borrowing structure ratio between borrowings at fixed interest rate and variable interest rate.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

4. Financial Risk Management (cont’d)

③	Other market price risk

Equity price risk arises from fluctuation of market price of listed equity securities. Management of the Company 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 Company.

(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 Company consists of equity and net borrowings (total borrowings after deducting cash and cash equivalents). The Company 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				2023
Total borrowings		~~W~~	40,554				1,758,007
Less: Cash and cash equivalents			409,387				376,914
Net borrowings			(368,833	)			1,381,093
Total equity		~~W~~	48,189,030				47,499,865
Net<br>borrowings-to-equity ratio(*1)			—				2.91	%
(*1)	As of December 31, 2024, Cash and cash equivalents exceeded the borrowing amount, so the net borrowings-to-equity ratio is not calculated.
---	---

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POSCO HOLDINGS INC.

Notes to the Separate 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				2023
Demand deposits and checking accounts(*1)		~~W~~	4,962				1,216
Other cash equivalents			404,425				375,698
		~~W~~	409,387				376,914
(*1)	As of December 31, 2024 and 2023, cash and cash equivalents of ~~W~~304 million and<br>~~W~~472 million, respectively, are restricted for use in relation to government assigned project.
---	---

6. TradeAccounts and Notes Receivable

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

(in millions of Won)		2024				2023
Current
Trade accounts and notes receivable		~~W~~	48,349				100,323
Unbilled receivables (contract assets)			130,473				138,009
Less: Allowance for doubtful accounts			—				—
		~~W~~	178,822				238,332

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

7. Other Receivables

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

(in millions of Won)		2024				2023
Current
Other accounts receivable		~~W~~	12,535				51,530
Others(*1)			13,301				21,193
Less: Allowance for doubtful accounts(*1)			(4,448	)			(3,902	)
		~~W~~	21,388				68,821
Non-current
Loans(*1)		~~W~~	247,569				217,349
Long-term other accounts receivable			14,585				6,945
Others			309				10
Less: Allowance for doubtful accounts(*1)			(247,569	)			(217,349	)
		~~W~~	14,894				6,955
(*1)	The Company recognized an allowance for doubtful accounts for all of the other receivables from FQM Australia<br>Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.
---	---

8. Other Financial Assets

(a)	Other financial assets as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Current
Deposit instruments			2,260,000				1,750,000
Short-term financial instruments			426,420				2,190,743
		~~W~~	2,686,420				3,940,743
Non-current
Equity securities			158,761				926,752
Other securities			263,059				204,320
Deposit instruments			2				2
		~~W~~	421,822				1,131,074

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

8. Other Financial Assets (cont’d)

(b)	Equity securities as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024																			2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Number ofshares			Ownership(%)			Acquisitioncost				Fairvalue			Net changes infair value ofequity securities			Bookvalue			Book value
Marketable equity securities
Nippon Steel Corporation(*1)			15,698,500			1.46		~~W~~	—				—			—			—			462,775
KB Financial group Inc.			—			—			—				—			—			—			209,016
CSN Mineracao S.A.			102,186,675			1.86			206,265				125,219			(81,046	)		125,219			212,617
									206,265				125,219			(81,046	)		125,219			884,408
Non-marketable equity securities
PLANTEC Co., Ltd.(*2)			18,337,912			10.99			19,437				31,560			12,123			31,560			40,362
Intellectual Discovery Co.,Ltd.			200,000			6.00			5,000				1,350			(3,650	)		1,350			1,350
Pos-hyundai Steel Manufacturing India Private<br>Limited			1,055,496			6.00			612				612			—			612			612
S&M Media Co.,Ltd.			2,000			2.67			20				20			—			20			20
XG Sciences			300,000			5.06			2,724				—			(2,724	)		—			—
									27,793				33,542			5,749			33,542			42,344
								~~W~~	234,058				158,761			(75,297	)		158,761			926,752
(*1)	During the year ended December 31, 2024, the Company decided to dispose of the shares of Nippon Steel<br>Corporation and classified the equity security as assets held for sale.
---	---
(*2)	The entity was assessed by fair value determined by an external valuation firm.
---	---

9. Assets Held for Sale

(a)	During the year ended December 31, 2024, the Company determined to sell Nippon Steel Corporation and<br>classified the equity security of ~~W~~467,796 million, a full amount of carrying amount, as assets held for sale.
(b)	During the year ended December 31, 2022, the Company decided to dispose of interests of CSP-Compania Siderurgica do Pecem which was previously classified investment in joint ventures and fully impaired. It was classified as<br>held-for-sale assets as of December 31, 2022. Meanwhile, during the year ended December 31, 2023, the Company disposed of CSP - Compania Siderurgica do Pecem,<br>and recognized ~~W~~998 million of loss on disposals of assets held for sale.
---	---

32

Table of Contents

POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

10. Investments in Subsidiaries, Associates and Joint ventures

(a)	Investments in subsidiaries, associates and joint ventures as of and for the year December 31, 2024 and<br>2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Investment in subsidiaries		~~W~~	42,787,174				42,519,521
Investment in associates			208,129				230,552
Investment in joint ventures			2,636,662				2,571,297
		~~W~~	45,631,965				45,321,370

There are no significant restrictions on the ability of subsidiaries, associates and joint ventures to transfer funds to the controlling company, such as in the forms of cash dividends and repayment of loans or payment of advances.

(b)	Details of subsidiaries and carrying amounts as of and for the year December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)							2024																2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Country			Principal operations		Number ofshares			Ownership(%)			Net assetvalue				Acquisitioncost			Book<br>value			Bookvalue
[Domestic]
POSCO			Korea		Steel, rolled products, and plates manufacturing and sales			96,480,625			100.00		~~W~~	33,106,528				29,918,622			29,918,622			29,698,113
POSCO INTERNATIONAL Corporation			Korea		Trading, power generation and natural resources exploration			124,396,358			70.71			5,710,417				4,268,588			3,740,020			3,740,020
POSCO Eco & Challenge Co., Ltd.			Korea		Engineering and construction			22,073,568			52.80			3,429,985				1,014,963			1,014,963			1,013,453
POSCO Venture Capital Co., Ltd.			Korea		Investment in venture companies			20,736,842			100.00			196,250				115,931			115,931			115,931
POSCO FUTURE M CO.,LTD.(*1)			Korea		Refractory and anode/cathode material manufacturing and sales			46,261,601			59.72			2,785,385				1,485,000			1,395,687			895,687
POSCO WIDE Co., Ltd.			Korea		Business facility maintenance			1,914,211			100.00			255,179				308,843			308,843			308,843
POSCO DX			Korea		Computer hardware and software distribution			99,403,282			65.47			514,543				70,990			70,990			70,990
Busan E&E Co., Ltd.			Korea		Municipal solid waste fuel and power generation			6,029,660			70.00			55,527				30,148			30,148			30,148
POSOCO-Pilbara LITHIUM SOLUTION Co.,<br>Ltd.(*2)_			Korea		Lithium manufacturing and sales			62,946,316			82.00			216,023				314,940			314,940			314,940
POSCO LITHIUM SOLUTION(*3)			Korea		Lithium hydroxide manufacturing and sales			57,510,000			100.00			294,593				287,550			287,550			287,550
QSONE Co.,Ltd.			Korea		Real estate rental and facility management			400,000			100.00			188,050				238,478			238,478			238,478
POSCO CNGR Nickel Solution(*2)			Korea		Nickel refining			9,840,000			60.00			74,532				49,520			49,520			—
POSCO ZT AIR SOLUTION(*3)			Korea		Manufacturing and Sales of High-Purity Rare Gases			12,630,551			75.10			83,131				63,481			63,481			—
Others (11 companies)(*4)														676,078				476,316			446,037			442,847
														47,586,221				38,643,370			37,995,210			37,157,000
[Foreign]
POSCO WA PTY LTD			Australia		Iron ore sales and mine development			631,160,435			100.00			584,133				646,574			646,574			646,574
POSCO Maharashtra Steel Private Limited(*5)			India		Steel manufacturing and sales			—			—			—				—			—			722,514
POSCO Canada Ltd.			Canada		Coal sales			1,099,885			100.00			701,040				560,879			560,879			560,879
POSCO AUSTRALIA PTY LTD			Australia		Iron ore sales and mine development			761,775			100.00			957,831				330,623			330,623			330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.			China		Stainless steel manufacturing and sales			2,285,407,454			58.60			393,352				283,792			283,792			283,792
POSCO-China Holding Corp.			China		Holding company			—			100.00			506,683				593,816			593,816			593,816
POSCO America Corporation			USA		Researching and consulting			437,941			99.45			173,737				192,136			192,136			192,136
POSCO VST CO., LTD.(*6)			Vietnam		Stainless steel manufacturing and sales			—			95.65			79,875				144,552			66,060			144,552
POSCO Asia Co., Ltd.			Hong Kong		Activities Auxiliary to financial service			9,360,000			100.00			295,864				117,690			117,690			117,690
POSCO ASSAN TST STEEL INDUSTRY(*5),(*7)			Turkiye		Steel manufacturing and sales			—			—			—				—			—			71,686
POSCO JAPAN Co., Ltd.			Japan		Steel marketing, demand development, and technology research			90,438			100.00			204,638				68,410			68,410			68,410
Qingdao Pohang Stainless Steel Co., Ltd.			China		Stainless steel manufacturing and sales			—			70.00			102,162				65,982			65,982			65,982
POSCO (Suzhou) Automotive Processing Center Co., Ltd.			China		Steel manufacturing and sales			—			90.00			189,265				62,469			62,469			62,469
POSCO AFRICA (PROPRIETARY) LIMITED			South Africa		Mine development			1,390			100.00			21,687				50,297			50,297			50,297
POSCO Argentina S.A.U.(*8)			Argentina		Mineral exploration, manufacturing and sales			37,568,921			100.00			1,525,585				1,510,551			1,510,551			1,150,087
Others (16 companies)(*5)														872,702				255,862			242,685			301,014
														6,608,554				4,883,633			4,791,964			5,362,521
													~~W~~	54,194,775				43,527,003			42,787,174			42,519,521
(*1)	During the year ended December 31, 2024, the Company acquired hybrid bonds of POSCO FUTURE M CO., LTD. at<br>~~W~~500,000 million and classified as investments in subsidiaries.
---	---
(*2)	During the year ended December 31, 2024, the Company acquired 60% of shares of POSCO CNGR Nickel Solution<br>Co., Ltd. at ~~W~~49,520 million and classified the acquired equity interests as investments in subsidiaries.
---	---
(*3)	During the year ended December 31, 2024, the Company acquired 75.1% of shares of POSCO ZT AIR SOLUTION at<br>~~W~~63,481 million and classified the acquired equity interests as investments in subsidiaries.
---	---

33

Table of Contents

POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

10. Investments in Subsidiaries, Associates and Joint ventures (cont’d)

(*4)	As of December 31, 2024, the Company performed the impairment test on investment in POSCO-GS Eco Materials Co., Ltd due to impairment indicators such as continuous operating losses and deteriorating business environments. The recoverable amount of the investment was determined based on its value in<br>use, which is estimated at the present value of estimated future cash flows since the date of the impairment test, discounted at a rate of 10.97%. As a result of the impairment test, the Company recognized ~~W~~30,279 million of<br>impairment loss.
(*5)	During the year ended December 31, 2024, the Company disposed of all shares of 4 subsidiaries, including<br>POSCO Maharashtra Steel Private Limited and POSCO ASSAN TST STEEL INDUSTRY to POSCO, a subsidiary. Meanwhile, the Company recognized ~~W~~81,921 million of gain on disposal from the transaction as dividend income, and<br>~~W~~203,919 million of loss on disposal were added to the acquisition cost of the POSCO. The disposal amount related to the transaction is ~~W~~640,544 million.
---	---
(*6)	As of December 31, 2024, the Company performed the impairment test on investment in POSCO VST CO., LTD.<br>due to impairment indicators such as continuous operating losses and deteriorating business environments. The recoverable amount of the investment was determined based on its value in use, which is estimated at the present value of estimated future<br>cash flows since the date of the impairment test, discounted at a rate of 10.50%. As a result of the impairment test, the Company recognized ~~W~~78,492 million of impairment loss.
---	---
(*7)	As of the equity sale date, the Company performed the impairment test on investment in POSCO ASSAN TST STEEL<br>INDUSTRY Ltd due to impairment indicators such as continuous operating losses and deteriorating business environments. The recoverable amount of the investment was determined based on its value in use, which is estimated at the present value of<br>estimated future cash flows since the date of the impairment test, discounted at a rate of 10.50%. As a result of the impairment test, the Company recognized ~~W~~71,685 million of impairment loss.
---	---
(*8)	During the year ended December 31, 2024, the Company acquired ~~W~~360,464 million of<br>additional investment in subsidiaries by participating in POSCO Argentina S.A.U.‘s capital increase to invest in an Argentine brine lithium commercialization plant.
---	---
(c)	Details of associates and carrying amounts as of and for the year ended December 31, 2024 and 2023 are as<br>follows:
---	---
(in millions of Won)						2024														2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Country			Principal operations		Number of shares			Ownership(%)		Net assetvalue			Acquisitioncost			Bookvalue			Bookvalue
[Domestic]
POSCO JK SOLID SOLUTION CO., LTD.		Korea		Material manufacturing for rechargeable battery			200,000			40.00		19,293			26,025			26,025			26,025
Others (5 companies)												33,094			12,938			12,111			12,111
												52,387			38,963			38,136			38,136
[Foreign]
9404-5515 Quebec Inc.(*1)		Canada		Investments			138,797,061			12.61		1,704,653			156,194			156,194			156,194
ZHEJIANG HUAYOU-POSCO ESM CO., LTD(*1,2)		China		Precursors manufacturing and sales			—			8.29		286,226			22,423			—			22,423
Others (3 companies)												(1,399,570	)		123,367			13,799			13,799
												591,309			301,984			169,993			192,416
											~~W~~	643,696			340,947			208,129			230,552
(*1)	As of December 31, 2024, the entities are classified as associates since the Company has significant influence<br>over the investees although the Company’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
---	---
(*2)	As of December 31, 2024, the Company performed the impairment test on investment in ZHEJIANG HUAYOU-POSCO<br>ESM CO., LTD due to impairment indicators such as continuous operating losses and deteriorating business environments. The recoverable amount of the investment was determined based on its value in use, which is estimated at the present value of<br>estimated future cash flows since the date of the impairment test, discounted at a rate of 13.60%. As a result of the impairment test, the Company recognized ~~W~~22,423 million of impairment loss.
---	---

34

Table of Contents

POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

10. Investments in Subsidiaries, Associates and Joint ventures (cont’d)

(d)	Details of joint ventures and carrying amounts as of and for the year ended December 31, 2024 and 2023 are<br>as follows:
(in millions of Won)										2024																2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Country				Principaloperations				Number ofshares			Ownership(%)			Net asset value				Acquisitioncost			Book value			Book value
Roy Hill Holdings Pty Ltd(*1)			Australia				Natural<br>resources<br>exploration				10,494,377			10.00		~~W~~	8,104,169				1,225,464			1,225,464			1,225,464
POSCO-NPS Niobium LLC			USA				Foreign<br>investments in<br>mining				325,050,000			50.00			955,592				364,609			364,609			364,609
KOBRASCO			Brazil				Steel<br>materials<br>manufacturing<br>and sales				2,010,719,185			50.00			239,035				98,962			98,962			98,962
HBIS-POSCO Automotive Steel Co., Ltd			China				Steel<br>manufacturing<br>and sales				—			50.00			379,160				235,207			235,207			235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.			China				Steel<br>manufacturing<br>and sales				—			25.00			480,757				63,866			63,866			63,866
PT NICOLE METAL INDUSTRY(*2)			Indonesia				Nickel<br>Smelting				137,488,235			49.00			793,129				541,471			541,471			293,361
Hydrogen Duqm LLC(*3)			Oman				Green<br>Hydrogen/<br>Ammonia<br>product<br>business<br>development				1,824,673			44.80			6,071				6,452			6,452			—
Nickel Mining Company SAS(*4)			New<br>Caledonia				Raw material<br>manufacturing<br>and sales				3,234,698			49.00			237,239				189,197			—			189,197
SNNC			Korea				STS material<br>manufacturing<br>and sales				18,130,000			49.00			95,519				100,631			100,631			100,631
																~~W~~	11,290,671				2,825,859			2,636,662			2,571,297
(*1)	As of December 31, 2024 and 2023, the investments in joint ventures amounting to<br>~~W~~1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.
---	---
(*2)	During the year ended December 31, 2024, the Company acquired ~~W~~248,110 million of<br>additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY‘s capital increase to invest in a nickel dry smelting plant in Indonesia.
---	---
(*3)	During the year ended December 31, 2024, the Company acquired 44.8% of shares in Hydrogen Duqm LLC, for<br>~~W~~6,452 million and classified them as an investment in joint ventures.
---	---
(*4)	As of December 31, 2024, due to continuous operating losses and a deteriorating business environment, the<br>Company assessed that the value in use of our equity interest in Nickel Mining Company SAS is likely to be low. Accordingly, the Company recognized a full impairment loss of ~~W~~189,197 million, which is the difference between<br>carrying amount and recoverable amount.
---	---

35

Table of Contents

POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

11. Investment Property

(a)	Investment property as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024													2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Acquisitioncost				Accumulateddepreciation			Accumulatedimpairment			Bookvalue			Acquisitioncost			Accumulateddepreciation			Accumulatedimpairment			Bookvalue
Land		~~W~~	226,095				—			(9,884	)		216,211			194,910			—			(1,464	)		193,446
Buildings			276,031				(178,279	)		—			97,752			271,913			(170,684	)		—			101,229
Structures			27,212				(12,803	)		—			14,409			27,198			(11,973	)		—			15,225
		~~W~~	529,338				(191,082	)		(9,884	)		328,372			494,021			(182,657	)		(1,464	)		309,900

The fair value of investment properties as of December 31, 2024 is ~~W~~1,767,296 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			Depreciation(*1)			Transfer(*2)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land		~~W~~	193,446				1,200			—			21,565			216,211
Buildings			101,229				—			(7,378	)		3,901			97,752
Structures			15,225				—			(824	)		8			14,409
		~~W~~	309,900				1,200			(8,202	)		25,474			328,372
(*1)	The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
---	---
(*2)	Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)		Beginning				Acquisitions			Depreciation(*1)			Transfer(*2)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land		~~W~~	131,069				54,891			—			7,486			193,446
Buildings			83,528				—			(7,078	)		24,779			101,229
Structures			6,102				—			(610	)		9,733			15,225
		~~W~~	220,699				54,891			(7,688	)		41,998			309,900
(*1)	The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
---	---
(*2)	Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
---	---

36

Table of Contents

POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

12. 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
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Acquisitioncost			Accumulateddepreciation			Accumulatedimpairment			Governmentgrants			Bookvalue		Acquisitioncost		Accumulateddepreciation			Accumulatedimpairment			Governmentgrants			Bookvalue
Land		~~W~~	51,856			—			(1,705	)		(5,000	)		45,151		51,903		—			(1,706	)		—			50,197
Buildings			68,516			(35,760	)		(4,039	)		(270	)		28,447		72,409		(34,735	)		(7,865	)		(270	)		29,539
Structures			11,272			(3,335	)		(599	)		—			7,338		11,285		(2,938	)		(599	)		—			7,748
Machinery and equipment			41,120			(9,194	)		(2,105	)		—			29,821		38,662		(7,846	)		(3,267	)		—			27,549
Vehicles			89			(45	)		—			—			44		89		(26	)		—			—			63
Furniture and fixtures			26,215			(13,282	)		—			—			12,933		25,683		(12,198	)		—			—			13,485
Construction-in-progress			292,259			—			—			—			292,259		82,626		—			(8,420	)		(5,000	)		69,206
		~~W~~	491,327			(61,616	)		(8,448	)		(5,270	)		415,993		282,657		(57,743	)		(21,857	)		(5,270	)		197,787
(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				Acquisitions			Disposals			Depreciation			Others(*1)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land		~~W~~	50,197				4			—			—			(5,050	)		45,151
Buildings			29,539				4,736			—			(1,927	)		(3,901	)		28,447
Structures			7,748				1			—			(403	)		(8	)		7,338
Machinery and equipment			27,549				5,161			(337	)		(2,552	)		—			29,821
Vehicles			63				—			—			(19	)		—			44
Furniture and fixtures			13,485				622			(4	)		(1,170	)		—			12,933
Construction-in-progress			69,206				239,567			—			—			(16,514	)		292,259
		~~W~~	197,787				250,091			(341	)		(6,071	)		(25,473	)		415,993
(*1)	Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred to investment property, and other expenses.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)		Beginning				Acquisitions			Disposals			Depreciation			Impairment(*2)			Others(*1)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Land		~~W~~	51,310				8,079			—			—			(1,706	)		(7,486	)		50,197
Buildings			39,277				12,659			(186	)		(1,399	)		—			(20,812	)		29,539
Structures			6,036				1,107			(700	)		(201	)		—			1,506			7,748
Machinery and equipment			10,504				18,637			—			(1,061	)		(531	)		—			27,549
Vehicles			11				62			—			(10	)		—			—			63
Furniture and fixtures			12,573				1,303			—			(951	)		—			560			13,485
Construction-in-progress			25,295				69,693			—			—			(8,420	)		(17,362	)		69,206
		~~W~~	145,006				111,540			(886	)		(3,622	)		(10,657	)		(43,594	)		197,787
(*1)	Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred from investment properties, and other expenses.
---	---
(*2)	During the year ended December 31, 2023, the Company estimated the recoverable amount based on the net<br>fair value of land adjacent to the magnesium smelting plant located in Gangneung city where operation and development has been discontinued. The Company recognized an impairment loss since recoverable amounts are less than their carrying amounts.<br>
---	---

37

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

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

(c)	Information on lease agreements for which the Company is a lessee is as follows:
1)	Right-of-use assets<br>
---	---

As of December 31, 2024 and 2023, there are no right-of-use assets listed as property, plant and equipment.

2)	Amount recognized in profit or loss

The amounts recognized in profit or loss related to leases for the years ended December 31, 2024 and 2023 are as follows:

(in millions of Won)		2024				2023
Expenses relating to short-term leases			9,253				4,739
Expenses relating to leases of low-value<br>assets			5,040				3,354
		~~W~~	14,293				8,093

38

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

13. Intangible Assets

(a)	Intangible assets as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024										2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Acquisitioncost				Accumulatedamortization			Bookvalue			Acquisitioncost			Accumulatedamortization			Bookvalue
Intellectual property rights		~~W~~	2,324				(1,521	)		803			1,927			(1,351	)		576
Membership			10,072				—			10,072			11,618			—			11,618
Development expense			9,364				(5,903	)		3,461			7,498			(4,593	)		2,905
Construction-in-progress			6,680				—			6,680			3,565			—			3,565
Other intangible assets			927				(482	)		445			927			(250	)		677
		~~W~~	29,367				(7,906	)		21,461			25,535			(6,194	)		19,341
(b)	Changes in the carrying amount of intangible assets for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
1)	For the year ended December 31, 2024
---	---
(in millions of Won)		Beginning				Acquisitions			Disposals			Amortization			Others(*2)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Intellectual property rights		~~W~~	576				—			(4	)		(170	)		401			803
Membership(*1)			11,618				—			(1,546	)		—			—			10,072
Development expense			2,905				—			—			(1,310	)		1,866			3,461
Construction-in-progress			3,565				5,631			(249	)		—			(2,267	)		6,680
Other intangible assets			677				—			—			(232	)		—			445
		~~W~~	19,341				5,631			(1,799	)		(1,712	)		—			21,461
(*1)	Estimated useful life of membership is indefinite.
---	---
(*2)	Represents assets transferred from<br>construction-in-progress to intangible assets and assets transferred to other expenses.
---	---
2)	For the year ended December 31, 2023
---	---
(in millions of Won)		Beginning				Acquisitions			Amortization			Others(*2)			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Intellectual property rights		~~W~~	504				—			(151	)		223			576
Membership(*1)			11,618				—			—			—			11,618
Development expense			1,400				—			(865	)		2,370			2,905
Construction-in-progress			1,476				4,740			—			(2,651	)		3,565
Other intangible assets			904				4			(231	)		—			677
		~~W~~	15,902				4,744			(1,247	)		(58	)		19,341
(*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, and others.
---	---

39

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

14. Other Assets

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

(in millions of Won)		2024				2023
Current
Advance payments		~~W~~	798				208
Prepaid expenses			917				865
		~~W~~	1,715				1,073
Non-current
Long-term advance payments		~~W~~	5,325				1,843
Long-term prepaid expenses			488				21
Others			8				8
		~~W~~	5,821				1,872

15. Borrowings

(a)	Borrowings as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Short-term borrowings
Exchangeable bonds		~~W~~	39,053				1,756,691
Long-term borrowings
Long-term borrowings		~~W~~	1,500				1,316

(b) Current portion of debentures as of December 31, 2024 and 2023 are as follows:

(in millions of Won)		Lenders		Issuancedate		Maturitydate		Annualinterest rate (%)		2024				2023
Exchangeable bonds(*1)		Foreign currency<br>exchangeable bonds		2021.09.01.		2026.09.01.		—		~~W~~	39,053				1,756,691
(*1)	As of December 31, 2024, exchangeable bonds are reclassified as current liabilities because the<br>bondholders’ put option for redemption has become exercisable within 12 months.
---	---

40

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

15. Borrowings (cont’d)

(c)	The issuance conditions of the exchangeable bonds issued by the Company are as follows:
		Foreign currency exchangeable bonds
---	---	---
Type of bond		Exchangeable bonds
Aggregate principal amount(*1)		EUR 27,100,000
Interest rate		- Coupon rate : -
		- Yield to maturity : (0.78%)
Maturity date		September 1, 2026
Redemption		- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option
		is not excercised on, is repaid at maturity as a lump sum
		- Prepayment : The issuer has call option and the bondholders have put option
Exchange rate		100%
Exchange price(*2)<br>(Won/share)		437,491
Underlying shares		Registered common shares(treasury shares)
Exchange period		From October 12, 2021 to August 22, 2026
Adjustments for<br>exchange price		Adjusting the exchange price according to the terms and conditions of the bond in the events
		of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation,
		change of share type, issuance of options or warranties to shareholders, share dividend,
		cash dividend, issuance of new shares under the market price.
Put option by<br>bondholders		- 3 years(September 1, 2024) from the closing date
		- In the event of a change of control of the Company
		- Where the shares issued by the Company are delisted (or suspended for more than 30
		consecutive trading days)
Call option by the issuer		- Share price(based on closing price) is higher than 130% of exchange price for more than
		20 trading days during 30 consecutive trading days in a row, after 3 years (September 1, 2024)
		from the closing day to 30 business days before the maturity of bonds
		- When the outstanding balance of outstanding bonds is less than 10% of the total issuance
		(Clean-Up Call)
		- Where additional reasons for tax burden arise due to the amendment of relevant laws and
		regulations, etc
(*1)	Due to put option exercised by bondholders, EUR 1,038,800,000 was redeemed out 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 paid during the year ended December 31, 2024.<br>
---	---

The Company has designated exchangeable bonds listed on the Singapore Stock Exchange as financial liabilities measured at fair value through profit or loss. The quoted transaction price is used in fair value measurement, and changes in fair value are recognized in profit or loss.

(d)	Long-term borrowings and others excluding current portion, as of December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)		Lenders		Issuance date			Maturitydate			Annualinterest rate (%)		2024				2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Foreign borrowings		KOREA ENERGY AGENCY			2011.12.27.			2026.12.26.		3 year<br>Government bond		~~W~~	1,500				1,316

41

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

16. Other Payables

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

(in millions of Won)		2024				2023
Current
Accounts payable		~~W~~	32,514				25,971
Accrued expenses			14,826				10,681
Dividend payable			3,016				3,087
		~~W~~50,356				39,739
Non-current
Long-term withholdings			33,110				29,962
Less: Present value discount			(2,327	)			(3,158	)
		~~W~~	30,783				26,804

17. Other Financial Liabilities

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

(in millions of Won)		2024				2023
Current
Financial guarantee liabilities		~~W~~	18,302				1,571
Non-current
Financial guarantee liabilities			—				6,968

42

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

18. 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(*1)		~~W~~	4,175				—			6,055			—
Provision for restoration(*2)			6,932				—			8,928			2,634
Others(*3)			35,161				—			—			—
		~~W~~	46,268				—			14,983			2,634
(*1)	Represents the provision for bonuses with the limit of 100% of annual salaries for executives.<br>
---	---
(*2)	Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung city, the<br>Company recognized present values of estimated costs for recovery as provisions for restoration as of December 31, 2024 and 2023. In order to determine the estimated costs, the Company has assumed that it would use all of technologies and<br>materials available for now to recover the land. In addition, the Company has applied discount rates of 3.25% to assess present value of these costs.
---	---
(*3)	Considering the operational circumstance of the Company’s investments in joint ventures, Nickel Mining<br>Company SAS, the Company recognized ~~W~~35,161 million of the financial guarantee liabilities the Company provided as other provisions.
---	---
(b)	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			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Provision for bonus payments		~~W~~	6,055				9,087			(10,967	)		4,175
Provision for restoration			11,562				1,819			(6,449	)		6,932
Others			—				35,161			—			35,161
		~~W~~	17,617				46,067			(17,416	)		46,268
2)	For the year ended December 31, 2023
---	---
(in millions of Won)		Beginning				Increase			Utilization			Ending
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Provision for bonus payments		~~W~~	5,667				10,154			(9,766	)		6,055
Provision for restoration			15,865				853			(5,156	)		11,562
Others			34,724				(8,158	)		(26,566	)		—
		~~W~~	56,256				2,849			(41,488	)		17,617

43

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

19. Employee Benefits

(a)	Defined contribution plans

The expense 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~~	63				116
(b)	Defined benefit plans
---	---
1)	The amounts recognized in relation to net defined benefit liabilities in the separate 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~~	39,980				44,276
Fair value of plan assets			(38,684	)			(39,993	)
Net defined benefit liabilities		~~W~~	1,296				4,283
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 obligation at the beginning of period		~~W~~	44,276				27,503
Current service costs			6,701				7,941
Interest costs			1,301				798
Remeasurement			4,843				163
Amount transferred from associate			(2,654	)			14,045
Benefits paid			(14,487	)			(6,174	)
Defined benefit obligation at the end of period		~~W~~	39,980				44,276

44

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

19. Employee Benefits (cont’d)

3)	Changes in the 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~~	39,993				23,742
Interest on plan assets			1,564				1,171
Remeasurement of plan assets			(316	)			32
Contributions to plan assets			3,000				2,000
Amount transferred from associate			(2,653	)			14,045
Benefits paid			(2,904	)			(997	)
Fair value of plan assets at the end of period		~~W~~	38,684				39,993
4)	The fair value of plan assets as of December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Debt instruments		~~W~~	38,683				107
Deposits			—				39,879
Others			—				7
		~~W~~	38,683				39,993
5)	The amounts recognized in the separate 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~~	6,701				7,941
Net interest costs(*1)			(263	)			(373	)
		~~W~~	6,438				7,568
(*1)	The actual return on plan assets amounted to ~~W~~1,327 million and<br>~~W~~1,249 million for the years ended December 31, 2024 and 2023, respectively.
---	---

45

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

19. Employee Benefits (cont’d)

6)	Remeasurements of defined benefit plans, net of tax recognized in other comprehensive income (loss) for the<br>years ended December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Beginning		~~W~~	(358,310	)			(358,212	)
Remeasurements of defined benefit plans			(5,158	)			(131	)
Tax effects			1,210				33
Ending		~~W~~	(362,258	)			(358,310	)
7)	The principal actuarial assumptions as of December 31, 2024 and 2023 are as follows:<br>
---	---
		2024			2023
---	---	---	---	---	---	---	---
Discount rate			3.81	%		4.42	%
Expected future increases in salaries(*1)			3.90	%		3.90	%
(*1)	The expected future increases in salaries are based on the average salary increase rate for the single basis.<br>
---	---

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 assumption, 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~~	(2,083	)			(5.2	)			2,329				5.8
Expected future increases in salaries			2,297				5.7				(2,095	)			(5.2	)
9)	As of December 31, 2024, the maturity of the expected benefit payments are as follows:<br>
---	---
(in millions of Won)		Within1 year				1 year- 5 years			5 years- 10 years			10 years- 20 years			After20 years			Total
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Benefits to be paid		~~W~~	3,619				16,942			14,735			13,733			1,504			50,533

46

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

19. Employee Benefits (cont’d)

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

20. Other Liabilities

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

(in millions of Won)		2024				2023
Current
Advances received		~~W~~	3,190				5
Withholdings			3,006				3,938
Unearned revenue			2,656				2,743
		~~W~~	8,852				6,686
Non-current
Unearned revenue		~~W~~	2,327				3,158

47

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. 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
Short term financial instruments		~~W~~	426,420				—			426,420			—			426,420
Other securities			263,059				—			—			263,059			263,059
Fair value through other comprehensive income
Equity securities			158,761				125,219			—			33,542			158,761
Assets held for sale			467,796				467,796			—			—			467,796
Financial assets measured at amortized cost(*1)
Cash and cash equivalents			409,387				—			—			—			—
Trade accounts and notes receivable			48,349				—			—			—			—
Other receivables			28,833				—			—			—			—
Deposit instruments			2,260,002				—			—			—			—
		~~W~~	4,062,607				593,015			426,420			296,601			1,316,036
Financial liabilities
Fair value through profit or loss
Borrowings		~~W~~	39,053				39,053			—			—			39,053
Financial liabilities measured at amortized cost(*1)
Borrowings			1,500				—			1,500			—			1,500
Financial guarantee liabilities			18,302				—			—			—			—
Others			76,376				—			—			—			—
		~~W~~	135,231				39,053			1,500			—			40,553
(*1)	Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
---	---
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
Short term financial instruments		~~W~~	2,190,743				—			2,190,743			—			2,190,743
Other securities			204,320				—			—			204,320			204,320
Fair value through other comprehensive income
Equity securities			926,752				884,408			—			42,344			926,752
Financial assets measured at amortized cost(*1)
Cash and cash Equivalents			376,914				—			—			—			—
Trade accounts and notes receivable			100,323				—			—			—			—
Other receivables			64,393				—			—			—			—
Deposit instruments			1,750,002				—			—			—			—
		~~W~~	5,613,447				884,408			2,190,743			246,664			3,321,815
Financial liabilities
Fair value through profit or loss
Borrowings		~~W~~	1,756,691				1,756,691			—			—			1,756,691
Financial liabilities measured at amortized cost(*1)
Borrowings			1,316				—			1,316			—			1,316
Financial guarantee liabilities			8,539				—			—			—			—
Others			62,252				—			—			—			—
		~~W~~	1,828,798				1,756,691			1,316			—			1,758,007

48

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

(*1)	Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
2)	Financial assets and financial liabilities classified as fair value hierarchy Level 2<br>
---	---

Fair values of financial instruments are calculated based on the valuation model such as discounted cash flow method and the inputs of the financial instrument valuation model include interest rate and others.

3)	Financial assets and financial liabilities classified as fair value hierarchy Level 3<br>
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 unobservable input
---	---	---	---	---	---	---	---	---	---	---	---
Financial assets at fair value		~~W~~	169,175			Asset value approach		—		—	—
			95,866			Discounted cash flow<br> <br>method		Growth rate		1%	Fair value increases when growth rate increases
								Discount rate		14.90%	Fair value decreases when discount rate increases
						Binomial Option<br>Pricing Model		Value of<br> <br>underlying asset		USD 1,910,715<br>thousands	Fair value increases when value of underlying<br>asset increases
								Volatility		55%	Fair value increases when volatility increases
			31,560			Discounted cash flow<br> <br>method		Growth rate		0%	Fair value increases when growth rate increases
								Discount rate		12.80%	Fair value decreases when discount rate increases
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%<br>of growth rate		~~W~~	293				(275	)
		Fluctuation 0.5%<br>of discount rate			532				(495	)

49

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

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~~	246,664				200,007
Acquisition			21,850				26,282
Gain or loss on valuation of financial assets			45,896				6,674
Other comprehensive income			(8,802	)			20,925
Disposal and others			(9,007	)			(7,224	)
Ending		~~W~~	296,601				246,664
4)	Financial liabilities were recognized in connection with financial guarantee contracts as of December 31,<br>2024. The details of the amount of guarantees provided are as follows:
---	---
(in millions of Won)					Guarantee limit									Guarantee amount
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Guarantee beneficiary		Financial institution			Foreigncurrency						Wonequivalent			Foreigncurrency			Wonequivalent
Subsidiaries
POSCO Asia Co., Ltd.			Credit Agricole					75,000,000			110,250			—			—
			Shinhan					50,000,000			73,500			—			—
POSCO Argentina S.A.U.			BNP					110,000,000			161,700			66,293,235			97,451
			CITI					187,975,000			276,323			141,418,165			207,885
			Credit Agricole					187,975,000			276,323			141,418,165			207,885
			HSBC					187,975,000			276,323			141,418,165			207,885
			JPM					187,975,000			276,323			141,418,165			207,885
			BANK OF AMERICA					50,900,000			74,823			26,594,829			39,092
			KEXIM					167,100,000			245,638			87,380,666			128,450
Joint ventures
Nickel Mining Company SAS			SMBC					46,000,000			70,322			46,000,000			70,322
								1,204,900,000			1,771,203			745,941,390			1,096,533
								46,000,000			70,322			46,000,000			70,322

All values are in US Dollars.

5)	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			Gain and losson foreigncurrency			Gain and losson disposal			Gain and losson valuation				Others				Total			Othercomprehensiveincome
Financial assets at fair value through profit or loss		~~W~~	—			11,779			31,994			100,226				—				143,999			—
Financial assets at fair value through other comprehensive income			—			—			(8,219	)		—				—				(8,219	)		(75,167	)
Financial assets measured at amortized cost			84,195			4,311			—			—				—				88,506			—
Financial liabilities at fair value through profit or loss			—			(57,626	)		(12,292	)		239,120				—				169,202			—
Financial liabilities measured at amortized cost			(1,163	)		(1,130	)		—			—				2,362				69			—
		~~W~~	83,032			(42,666	)		11,483			339,346				2,362				393,557			(75,167	)

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

②	For the year ended December 31, 2023
(in millions of Won)		Finance income and costs
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Interest income(expense)				Gain and losson foreigncurrency			Gain and losson disposal			Gain and losson valuation			Others			Total			Othercomprehensiveloss
Financial assets at fair value through profit or loss		~~W~~	—				1,105			46,857			173,589			—			221,551			—
Financial assets at fair value through other comprehensive income			—				—			(549	)		—			—			(549	)		236,979
Financial assets measured at amortized cost			72,376				9,474			—			—			—			81,850			—
Financial liabilities at fair value through profit or loss			—				(92,835	)		—			(305,562	)		—			(398,397	)		—
Financial liabilities measured at amortized cost			—				180			—			—			5,312			5,492			—
		~~W~~	72,376				(82,076	)		46,308			(131,973	)		5,312			(90,053	)		236,979
(b)	Credit risk
---	---
1)	Credit risk exposure
---	---

The carrying amount of financial assets represents the Company’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				2023
Cash and cash equivalents		~~W~~	409,387				376,914
Short-term financial instrument			426,420				2,190,743
Other securities			263,059				204,320
Other receivables			28,833				64,393
Trade accounts and notes receivable			178,822				238,332
Deposit instruments			2,260,002				1,750,002
		~~W~~	3,566,523				4,824,704

The Company provided financial guarantee for the repayment of loans of subsidiaries, associates, and joint ventures. As of December 31, 2024 and 2023, the maximum exposure to credit risk caused by financial guarantee amounted to ~~W~~1,166,855 million and ~~W~~478,095 million, respectively.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

2)	Impairment losses on financial assets

The Company assesses the expected credit loss on trade accounts and notes receivable, and other receivables by estimating the default rates based on the following three years of credit loss experience and overdue conditions. The Company assesses the credit loss individually for credit-impaired assets and some other receivables.

①	Allowance for doubtful accounts as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Accrued income			(4,448	)			(3,902	)
Loans			(247,569	)			(217,349	)
		~~W~~	(252,017	)			(221,251	)
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
---	---	---	---	---	---	---	---
Bad debt expenses		~~W~~	106				221,251
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
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Tradeaccountsand notesreceivable				Allowancefordoubtfulaccounts			Tradeaccountsand notesreceivable			Allowancefordoubtfulaccounts
Not due		~~W~~	178,822				—			234,731			—
Over due less than 1 month			—				—			3,601			—
		~~W~~	178,822				—			238,332			—
④	The aging and allowance for doubtful accounts of loans and accrued income included in other account receivable<br>as of December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)		2024							2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Loans and otheraccountreceivable				Allowance fordoubtfulaccounts			Loans and otheraccountreceivable			Allowance fordoubtfulaccounts
Not due		~~W~~	260,134				252,018			237,698			221,251
Over due less than 1 month			—				—			153			—
		~~W~~	260,134				252,018			237,851			221,251

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

⑤	Changes in the allowance for doubtful accounts for the years ended December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Beginning		~~W~~	221,251				—
Bad debt expenses			106				221,251
Others			30,661				—
Ending		~~W~~	252,018				221,251
(c)	Liquidity risk
---	---

Contractual maturities for non-derivative financial liabilities, including estimated interest, are as follows:

(in millions of Won)		Book value				Contractualcash flow			Within3 months			1 year- 5 years
Accounts payable		~~W~~	27,750				27,750			27,750			—
Borrowings(*1)			40,553				40,553			39,053			1,500
Financial guarantee liabilities(*2)			18,302				1,166,855			1,166,855			—
Others			48,626				50,953			17,843			33,110
		~~W~~	135,231				1,286,111			1,251,501			34,610
(*1)	In the case of exchangeable bonds, cash flow was allocated to the period in which the investor’s right to<br>claim early redemption could be exercised.
---	---
(*2)	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.
---	---
(d)	Currency risk
---	---
1)	The Company 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)	2024							2023
---	---	---	---	---	---	---	---	---	---	---	---	---
		Assets				Liabilities			Assets			Liabilities
	~~W~~	122,839				20,731			87,952			9,728
CNY		10,446				—			10,850			—
		122				39,171			574			1,757,008
AUD		25,583				—			88,231			—
Others		805				—			1,831			—
		~~W~~159,795				59,902			189,438			1,766,736

All values are in US Dollars.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

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)	2024								2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		10% increase				10% decrease				10% increase				10% decrease
	~~W~~	10,211				(10,211	)			7,822				(7,822	)
CNY		1,045				(1,045	)			1,085				(1,085	)
		(3,905	)			3,905				(175,643	)			175,643
AUD		2,558				(2,558	)			8,823				(8,823	)

All values are in US Dollars.

(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~~	3,586,509				4,317,657
Variable rate
Financial liabilities			(1,500	)			(1,316	)
2)	Sensitivity analysis on the cash flows of financial instruments with variable interest rate<br>
---	---

The Company’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~~	(15	)			15			(13	)			13

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

21. Financial Instruments (cont’d)

(f)	Supplier finance arrangements

The Company uses a purchasing card arrangements in relation to the supplier finance arrangements, and the carrying amount of the related financial liabilities is as follows:

(in millions of Won)		2024
Accounts payable		~~W~~	1,088

There is no non-cash change related to a transfer of trade accounts and notes payable to borrowings.

22. Share Capital and Capital Surplus

(a)	Share capital as of December 31, 2024 and 2023 are as follows:
(in Won, except share information)		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(*3)		~~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.
---	---
(*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.
---	---

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

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

(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 ofoutstandingshares			Issuedshares			Treasuryshares			Number ofoutstandingshares
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
Gain from merger			80,627				80,627
Loss on disposal of hybrid bonds			(1,787	)			(1,787	)
Share-based payment			16,331				18,898
		~~W~~	1,367,990				1,370,557

23. Accumulated Other Comprehensive Income (loss)

(a)	Accumulated Other Comprehensive Income (loss) as of December 31, 2024 and 2023 are as follows:<br>
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Changes in fair value of equity investments at fair value through other comprehensive<br>income		~~W~~	(62,645)				30,678
(b)	Changes in fair value of equity investments at fair value through other comprehensive income and changes in<br>unrealized fair value of available-for-sale investments for the years ended December 31, 2024 and 2023 are as follows:
---	---
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Beginning balance		~~W~~	30,678				(188,801	)
Changes in fair value of equity investments			(97,746	)			302,422
Reclassification to profit or loss upon disposal			(23,609	)			(17,165	)
Tax effects			28,032				(65,778	)
Ending balance		~~W~~	(62,645	)			30,678

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

24. Treasury Shares

Based on the Board of Directors’ resolution, the Company holds treasury shares for business purposes including price stabilization. Changes in treasury shares for the years ended December 31, 2024 and 2023 are as follows:

(shares, in millions of Won)		2024						2023
		Number ofshares			Amount			Number ofshares			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

25. Retained Earnings

(a)	Retained earnings as of December 31, 2024 and 2023 are summarized as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Legal reserve		~~W~~	241,202				241,202
Reserve for business rationalization			918,300				918,300
Appropriated retained earnings for business expansion			45,080,500				45,080,500
Unappropriated retained earnings			1,712,142				1,265,883
		~~W~~	47,952,144				47,505,885

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

25. Retained Earnings (cont’d)

(b)	Statements of appropriation of retained earnings for the years ended December 31, 2024 and 2023 are as<br>follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Retained earnings before appropriation
Unappropriated retained earnings carried over from prior year		~~W~~	1,076,192				1,017,975
Remeasurements of defined benefit plans			(3,948	)			(98	)
Loss on disposal of equity securities			18,156				17,500
Retirement of treasury shares			(431,107	)			—
Interim dividends			(568,433	)			(569,072	)
(Dividends (ratio) per share
~~W~~7,500 (150%) in 2024
~~W~~7,500 (150%) in 2023)
Profit for the period			1,621,282				799,578
			1,712,142				1,265,883
Appropriation of retained earnings
Dividends			189,052				189,691
(Dividends (ratio) per share
~~W~~2,000 (40%) in 2024
~~W~~5,000 (100%) in 2023)
			189,052				189,691
Unappropriated retained earnings carried forward to subsequent year		~~W~~	1,523,090				1,076,192

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

26. Operating Revenue

(a)	Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for the years<br>ended December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Types of revenue
Dividend income			1,812,999				1,254,239
Others			184,129				199,840
		~~W~~	1,997,128				1,454,079
Timing of revenue recognition
Revenue recognized at a point in time		~~W~~	1,812,999				1,254,251
Revenue recognized over time			184,129				199,828
		~~W~~	1,997,128				1,454,079
(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~~	48,349				100,323
Contract assets
Unbilled receivables			130,473				138,009
Contract liabilities
Advance received			3,190				5
Unearned income			4,983				5,901

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

27. Operating Expenses

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

(in millions of Won)		2024				2023
Wages and salaries		~~W~~	71,150				74,068
Expenses related to post-employment benefits			7,125				8,140
Other employee benefits			17,838				15,320
Travel			5,907				6,098
Taxes and public dues			14,401				12,927
Depreciation			11,363				10,279
Amortization			1,628				1,247
Rental			5,165				3,418
Repairs			819				454
Advertising			23,780				24,929
Research & development			143,211				103,170
Service fees			80,126				75,981
Supplies			431				653
Vehicles maintenance			2,733				2,643
Industry association fee			2,923				2,411
Training			1,783				1,240
Others			10,324				4,472
		~~W~~	400,707				347,450

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

28. 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				2023
Finance income
Interest income		~~W~~	84,195				72,376
Gain on foreign currency transactions			6,958				7,001
Gain on foreign currency translations			14,941				8,971
Gain on transactions of derivatives			1,058				—
Gain on disposal of financial assets at fair value through profit or loss			30,936				47,031
Gain on valuation of financial assets at fair value through profit or loss			103,365				174,867
Gain on valuation of financial liabilities at fair value through profit or loss			239,120				—
Others			2,372				5,582
		~~W~~	482,945				315,828
Finance costs
Interest expenses		~~W~~	1,163				—
Loss on foreign currency transactions			59,383				3,895
Loss on foreign currency translations			5,182				94,153
Loss on transactions of derivatives			6,035				—
Loss on transactions of equity securities			8,219				—
Loss on disposals of financial assets at fair value through profit or loss			—				174
Loss on valuations of financial assets at fair value through profit or loss			3,139				1,278
Loss on valuation of financial liabilities at fair value through profit or loss			—				305,562
Loss on bond redemption			6,257				—
Others			10				819
		~~W~~	89,388				405,881

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

29. 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				2023
Other non-operating income
Gain on disposals of investment in subsidiaries, associates and joint ventures			—				230
Reversal of other provisions			54				8,158
Others			3,195				15,081
		~~W~~	3,249				23,469
Other non-operating expenses
Impairment loss on other accounts receivables		~~W~~	106				221,251
Loss on disposals of property, plant and equipment			341				2,360
Impairment loss on property, plant and equipment			—				10,657
Impairment loss on investment in subsidiaries, associates and joint ventures			392,075				109,568
Loss on disposals of assets held for sale			—				998
Donations			356				350
Increase of other provisions			37,033				855
Others			7,240				10,283
		~~W~~	437,151				356,322

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

30. Expenses by Nature

Expenses that are recorded by nature as operating expenses and other non-operating expenses in the separate statements of comprehensive income for the years ended December 31, 2024 and 2023 are as follows (excluding finance costs and income tax expenses):

(in millions of Won)		2024				2023
Employee benefits expenses(*2)			113,870				100,774
Depreciation(*1)			14,271				11,309
Amortization			1,712				1,269
Service fees			82,498				77,360
Rental			14,763				8,801
Advertising			23,809				25,103
Impairment loss on investment in subsidiaries, associates and joint ventures			392,075				109,568
Loss on disposals of property, plant and equipment			341				2,360
Research & development			93,430				77,643
Impairment loss on other accounts receivables			106				221,251
Increase of other provisions			37,033				855
Other expenses			63,950				67,899
		~~W~~	837,858				704,192
(*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~~	105,606				91,485
Expenses related to post-employment benefits			8,264				9,289
		~~W~~	113,870				100,774

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

31. Income Tax Benefit

(a)	Income tax benefit for the years ended December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Current income taxes(*1)		~~W~~	(53,524	)			148,835
Deferred income taxes			(35,471	)			(198,878	)
Items credited directly to equity			23,789				(65,811	)
Income tax benefit		~~W~~	(65,206	)			(115,854	)
(*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
---	---	---	---	---	---	---	---	---
Changes in fair value of equity investments at fair value through other comprehensive<br>income(*1)		~~W~~	22,579				(65,778	)
Remeasurements of defined benefit plans(*1)			1,210				(33	)
		~~W~~	23,789				(65,811	)
(*1)	Those amounts were recognized in other comprehensive income.
---	---

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

31. Income Tax Benefit (cont’d)

(a)	The following table reconciles the calculated income tax benefit to profit before income tax for the years<br>ended December 31, 2024 and 2023.
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---	---
Profit before income tax		~~W~~	1,556,076				683,723
Income tax expense computed at statutory rate			359,454				170,141
Adjustments:
Tax credit			5,091				7,144
Additional Income tax expense for prior years			(54,244	)			97,044
Investment in subsidiaries, associates and joint ventures			(53,985	)			(48,217	)
Tax effect due to permanent differences			(321,567	)			(208,860	)
Effect of tax rate change			—				(10,494	)
Carryforward of unused tax losses			—				(122,830	)
Others			45				218
			(424,660	)			(285,995	)
Income tax benefit		~~W~~	(65,206	)			(115,854	)
Effective tax rate (%)(*1)			—				—
(*1)	During the years ended December 31, 2024 and 2023, as income tax benefit was recognized, the effective tax<br>rate was not calculated.
---	---
(d)	Changes in deferred tax assets (liabilities) for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
(in millions of Won)		2024									2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		December 31,2023			Increase(decrease)			December 31,2024			December 31,2022			Increase(decrease)			December 31,2023
Deferred income tax due to temporary differences
PPE—Depreciation		~~W~~	25			330			355			88			(63	)		25
Financial instruments			65,566			36,741			102,307			73,031			(7,465	)		65,566
Allowance for doubtful accounts			49,944			4,089			54,033			—			49,944			49,944
Prepaid expenses			3,499			801			4,300			5,918			(2,419	)		3,499
PPE—Revaluation			(193	)		32			(161	)		2,533			(2,726	)		(193	)
Gain or loss on foreign currency translation			51,536			(49,012	)		2,524			(39,318	)		90,854			51,536
Defined benefit liabilities			1,327			(2,990	)		(1,663	)		103			1,224			1,327
Accrued revenue			(4,736	)		2,861			(1,875	)		(916	)		(3,820	)		(4,736	)
PPE—Impairment loss			5,119			(1,343	)		3,776			2,650			2,469			5,119
Provision for accelerated depreciation			(2,652,426	)		25,139			(2,627,287	)		(2,728,370	)		75,944			(2,652,426	)
Others			83,058			(54,583	)		28,475			146,519			(63,461	)		83,058
			(2,397,281	)		(37,935	)		(2,435,216	)		(2,537,762	)		140,481			(2,397,281	)
Deferred tax from deficit and tax credit
Carryforward of unused tax losses			122,830			40,922			163,752			—			122,830			122,830
Tax credit carried over, etc			1,378			3,241			4,619			—			1,378			1,378
			124,208			44,163			168,371			—			124,208			124,208
Deferred income taxes recognized directly to equity
Net changes in fair value of equity investments at fair value through other comprehensive<br>income			(9,215	)		28,033			18,818			56,563			(65,778	)		(9,215	)
Remeasurements of defined benefit plans			787			1,210			1,997			820			(33	)		787
			(8,428	)		29,243			20,815			57,383			(65,811	)		(8,428	)
		~~W~~	(2,281,501	)		35,471			(2,246,030	)		(2,480,379	)		198,878			(2,281,501	)

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

31. Income Tax Benefit (cont’d)

(e)	Deferred tax assets (liabilities) as of December 31, 2024 and 2023 are as follows:
(in millions of Won)		2024										2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Assets				Liabilities			Net			Assets			Liabilities			Net
Deferred income tax due to temporary differences
PPE—Depreciation		~~W~~	355				—			355			25			—			25
Financial Instruments			114,275				(11,968	)		102,307			65,566			—			65,566
Allowance for doubtful accounts			54,033				—			54,033			49,944			—			49,944
Prepaid expenses			4,300				—			4,300			3,499			—			3,499
PPE—Revaluation			—				(161	)		(161	)		—			(193	)		(193	)
Gain or loss on foreign currency translation			7,070				(4,546	)		2,524			95,265			(43,729	)		51,536
Defined benefit liabilities			7,238				(8,901	)		(1,663	)		7,223			(5,896	)		1,327
Accrued revenue			—				(1,875	)		(1,875	)		—			(4,736	)		(4,736	)
PPE—Impairment loss			3,776				—			3,776			5,119			—			5,119
Provision for accelerated depreciation			—				(2,627,287	)		(2,627,287	)		—			(2,652,426	)		(2,652,426	)
Others			63,994				(35,519	)		28,475			161,220			(78,162	)		83,058
			255,041				(2,690,257	)		(2,435,216	)		387,861			(2,785,142	)		(2,397,281	)
Deferred tax from deficit and tax credit
Carryforward of unused tax losses			163,752				—			163,752			122,830			—			122,830
Tax credit carried over, etc			4,619				—			4,619			1,378			—			1,378
			168,371				—			168,371			124,208			—			124,208
Deferred income taxes recognized directly to equity
Net changes in fair value of equity investments at fair value through other comprehensive<br>income			21,618				(2,800	)		18,818			4,057			(13,272	)		(9,215	)
Remeasurements of defined benefit plans			1,997				—			1,997			787			—			787
			23,615				(2,800	)		20,815			4,844			(13,272	)		(8,428	)
		~~W~~	447,027				(2,693,057	)		(2,246,030	)		516,913			(2,798,414	)		(2,281,501	)

As of December 31, 2024, deductible temporary differences of ~~W~~10,569,294 million related to impairment losses on investments in subsidiaries, associates and joint ventures were not recognized as deferred tax assets, because it is not probable they will reverse in the foreseeable future.

(f)	The Company recognized current tax payable or receivable at the amount expected to be paid or received that<br>reflects uncertainly related to income taxes.
(g)	The Company’s vertical spun-off its steel business at the spin-off date on March 1, 2022. The Company’s vertical spin-off meets the requirements for qualified spin-off under the<br>Corporate Tax Act. Accordingly, transfer gains of ~~W~~8,452,339 million under the Corporate Tax Act were incurred for the net asset and liabilities transferred to the newly established company (POSCO), and the Company<br>simultaneously set a Corporate Tax Act based provision for accelerated depreciation on the transfer gains and recognized deferred tax liabilities.
---	---

Deductible temporary differences related to the investment in newly established company (POSCO) which is caused by transfer gains under the Corporate Tax Act were not recognized as deferred tax assets, since it is not probable they will reverse through disposal or liquidation.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

31. Income Taxes Benefit (cont’d)

(h)

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled,<br>which is effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the 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 Company reviewed subsidiaries qualifying as taxpayer, including the Company, and, as a result, did not<br>recognize any income tax expense for the year ended December 31, 2024 as the impact of the global minimum top-up tax on the separate financial statements as of December 31, 2024 would not be<br>significant. Furthermore, the Company applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes.<br>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.

32. Earnings Per Share

(a)	Basic earnings per share for the years ended December 31, 2024 and 2023 are as follows:<br>
(in Won, except share information)		2024				2023
---	---	---	---	---	---	---	---
Profit(loss) for the period		~~W~~	1,621,282,436,784				799,577,558,857
Weighted-average number of common shares outstanding(*1)			75,767,552				75,869,542
Basic earnings (loss) per share		~~W~~	21,398				10,539
(*1)	The weighted-average number of common shares outstanding used to calculate basic earnings per share are as<br>follows:
---	---
(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

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

32. Earnings Per Share (cont’d)

(b)	The Company 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 is<br>calculated as follows:
(in Won, except share information)		2024
---	---	---	---	---
Loss for the period		~~W~~	1,621,282,436,784
Gain from exchange rate on and revaluation of exchangeable bonds			(139,569,768,850	)
Diluted profit			1,481,712,667,934
Adjusted weighted-average number of common shares(*1)			77,990,432
Diluted earnings(loss) per share		~~W~~	18,999
(*1)	The adjusted weighted-average number of common shares outstanding used to calculate diluted earnings per share<br>are 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

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

33. Related Party Transactions

(a)	Related parties of the Company as of December 31, 2024 are as follows:
Type		Company
---	---	---
Subsidiaries		[Domestic]<br> <br>POSCO, POSCO Eco &<br>Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO M-TECH, Busan<br>E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation, POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION, Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd.,<br>TANCHEON E&E, POSCO IH, POSCO A&C Co., Ltd, Posco Group University, POSCO GY Solution, POSCO GYR Tech, POSCO GYS Tech, POSCO PR Tech, POSCO PS Tech, POSCO PH Solution, POSCO Humans Co.,Ltd., Pohang Scrap Recycling Distribution Center Co.,<br>Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd., Songdo Development PMC (Project Management Company) LLC., NEH Co.,Ltd., POSCO CNGR Nickel Solution, POSCO-GS Eco Materials Co., Ltd, Korea Fuel Cell and<br>others.<br> <br><br> <br>[Foreign]<br><br><br>POSCO America Corporation, POSCO AUSTRALIA PTY LTD., POSCO Asia Co., Ltd., POSCO (Zhangjiagang) StainlessSteel Co.,Ltd., POSCO-China Holding Corporation, POSCO<br>JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP and others.
Investments in associates and joint ventures		[Domestic]<br> <br>POSCO MC MATERIALS, Samcheok Blue<br>Power Co.,Ltd., SNNC, Gale International Korea, LLC, Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding Co.,Ltd., and others.<br> <br><br><br><br>[Foreign]<br> <br>Roy Hill Holdings Pty Ltd,<br>POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG<br>LTD., Nickel Mining Company SAS and others.
(b)	Material transactions with related companies for the years ended December 31, 2024 and 2023 are as<br>follows:
---	---
1)	For the year ended December 31, 2024
---	---
(in millions of Won)		Sales and others(*1)										Purchase and others
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Sales				Dividends(*3)			Others			Purchase offixed assets			Others
Subsidiaries(*2)
POSCO		~~W~~	151,157				888,008			66			191			10,986
POSCO Eco & Challenge Co., Ltd.			9,272				11,037			—			1,829			736
POSCO STEELEON CO., Ltd			1,184				—			—			—			9
POSCO DX			1,473				9,940			—			2,626			12,871
POSCO Research Institute			—				—			—			30			14,126
eNtoB Corporation			—				—			—			49			8,457
POSCO FUTURE M CO., LTD.			6,298				12,391			21			—			—
POSCO INTERNATIONAL Corporation			6,499				124,396			150			—			61
Busan E&E Co,. Ltd.			—				2,472			—			—			—
POSCO America Corporation			—				—			—			—			5,847
Others			5,570				355,171			2,374			2			26,567
			181,453				1,403,415			2,611			4,727			79,660
Associates and joint ventures(*2)
POSCO-NPS Niobium LLC			—				29,225			—			—			—
Roy Hill Holdings Pty Ltd			—				227,574			—			—			—
Others			809				25,266			225			—			—
			809				282,065			225			—			—
		~~W~~	182,262				1,685,480			2,836			4,727			79,660
(*1)	Sales and others mainly consist of trademark usage income, rental income and dividend income to subsidiaries,<br>associates and joint ventures.
---	---
(*2)	As of December 31, 2024, the Company provided guarantees to related parties (see Note 21).<br>
---	---
(*3)	Gain on disposals of investment in subsidiaries, recognized as dividends amounting to<br>~~W~~81,921 million, is excluded.
---	---

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

33. Related Party Transactions (cont’d)

2)	For the year ended December 31, 2023
(in millions of Won)		Sales and others(*1)										Purchase and others
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Sales				Dividends(*3)			Others			Purchase offixed assets			Others
Subsidiaries(*2)
POSCO		~~W~~	146,745				325,043			—			—			15,440
POSCO Eco & Challenge Co., Ltd.			9,354				11,037			440			23,007			5,875
POSCO STEELEON CO., Ltd			1,772				—			—			—			105
POSCO DX			3,040				7,455			—			4,017			9,037
eNtoB Corporation			—				—			40			158			3,326
POSCO FUTURE M CO., LTD.			8,902				13,878			—			—			—
POSCO Mobility Solution Corporation			1,035				—			55			—			—
POSCO INTERNATIONAL Corporation			9,278				77,616			—			—			48
POSCO Maharashtra Steel Private Limited			692				—			353			—			—
POSCO ASSAN TST STEEL INDUSTRY			17				—			430			—			—
Others			12,021				6,084			5,347			9,634			46,596
			192,856				441,113			6,665			36,816			80,427
Associates and joint ventures(*2)
SNNC			629				—			55			—			—
Roy Hill Holdings Pty Ltd			—				293,956			—			—			—
Others			240				92,149			11,617			—			158
			869				386,105			11,672			—			158
		~~W~~	193,725				827,218			18,337			36,816			80,585
(*1)	Sales and others mainly consist of trademark usage income, rental income and dividend income to subsidiaries,<br>associates and joint ventures.
---	---
(*2)	As of December 31, 2023, the Company provided guarantees to related parties.
---	---
(*3)	Gain on disposals of investment in subsidiaries, recognized as dividends amounting to<br>~~W~~346,801 million, is excluded.
---	---
(c)	The balances of receivables and payables arising from significant transactions with related parties as of<br>December 31, 2024 and 2023 are as follows:
---	---
1)	December 31, 2024
---	---
(in millions of Won)		Receivables										Payables
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Trade accounts andnotes receivable				Others			Total			Accounts payable			Others			Total
Subsidiaries
POSCO		~~W~~	102,071				1,093			103,164			5,854			36,111			41,965
POSCO Eco & Challenge Co., Ltd.			8,921				—			8,921			—			499			499
POSCO STEELEON CO., Ltd			1,126				—			1,126			—			—			—
POSCO DX			1,561				—			1,561			2,667			535			3,202
POSCO FUTURE M CO., LTD.			15,364				—			15,364			—			65			65
POSCO Mobility Solution Corporation			802				—			802			—			6			6
POSCO INTERNATIONAL Corporation			6,664				—			6,664			—			364			364
POSCO Argentina S.A.U			—				26,002			26,002			768			—			768
Others			3,274				231			3,505			7,873			311			8,184
			139,783				27,326			167,109			17,162			37,891			55,053
Associates and joint ventures
SNNC			662				—			662			—			—			—
Roy Hill Holdings Pty Ltd			25,023				—			25,023			—			—			—
FQM Australia Holdings Pty Ltd(*1)			—				249,560			249,560			—			—			—
Others			10,665				122			10,787			—			—			—
			36,350				249,682			286,032			—			—			—
		~~W~~	176,133				277,008			453,141			17,162			37,891			55,053
(*1)	FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest.<br>Meanwhile, the Company has recognized an allowance for doubtful accounts for all of these other receivables.
---	---

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

33. Related Party Transactions (cont’d)

2)	December 31, 2023
(in millions of Won)		Receivables										Payables
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Trade accounts andnotes receivable				Others			Total			Accounts payable			Others			Total
Subsidiaries
POSCO		~~W~~	110,913				19,666			130,579			3,937			32,901			36,838
POSCO Eco & Challenge Co., Ltd.			9,262				1,714			10,976			—			170			170
POSCO STEELEON CO., Ltd			1,063				—			1,063			—			—			—
POSCO DX			1,574				—			1,574			1,434			423			1,857
eNtoB Corporation			—				—			—			1,391			3			1,394
POSCO FUTURE M CO., LTD.			14,299				463			14,762			—			31			31
POSCO Mobility Solution Corporation			981				—			981			—			—			—
POSCO INTERNATIONAL Corporation			6,449				25			6,474			—			163			163
PT. KRAKATAU POSCO			—				3,582			3,582			—			—			—
Others			3,345				11,152			14,497			9,022			151			9,173
			147,886				36,602			184,488			15,784			33,842			49,626
Associates and joint ventures
SNNC			334				—			334			—			—			—
Roy Hill Holdings Pty Ltd			88,008				—			88,008			—			—			—
FQM Australia Holdings Pty Ltd(*1)			—				218,900			218,900			—			—			—
Others			195				560			755			—			—			—
			88,537				219,460			307,997			—			—			—
		~~W~~	236,423				256,062			492,485			15,784			33,842			49,626
(*1)	FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest. During<br>the year ended December 31, 2023, the Company provided additional loan of ~~W~~6,448 million to FQM Australia Holdings Pty Ltd. Meanwhile, the Company has recognized an allowances for doubtful accounts for all<br>of these other receivables during the year ended December 31, 2023.
---	---
(d)	For the years ended December 31, 2024 and 2023, there were additional investments in subsidiaries<br>and others.(See Note 10 “Investments in Subsidiaries, Associates and Joint ventures”)
---	---
(e)	For the years ended December 31, 2024 and 2023, details of compensation to key management officers are as<br>follows:
---	---
(in millions of Won)		2024				2023
---	---	---	---	---	---	---	---
Short-term benefits		~~W~~	25,717				32,291
Retirement benefits			3,200				5,768
		~~W~~	28,917				38,059

Key management officers include directors (including non-standing directors), executive officials and fellow officials who have significant influence and responsibilities in the Company’s business and operations.

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

34. Commitments and Contingencies

(a)	Contingent liabilities

Contingent liabilities can change due to unforeseen circumstances; therefore, management continuously reviews whether the likelihood of an outflow of resources embodying economic benefits has increased. Except in extremely rare circumstances where it cannot be reliably estimated, if the likelihood of an outflow of future economic benefits has increased, even if it had been treated as a contingent liability in the past, such changes in likelihood are recognized as a provision in the separate financial statements for the period in which the change occurred.

Management of the Company 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 Company 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.

(b)	Commitments
1)	As of December 31, 2024, the Company entered into commitments with KOREA ENERGY AGENCY for long-term<br>foreign currency borrowing, which is limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowing depends on the success of the project.<br>The Company is not liable for the repayment of full or part of the money borrowed if the respective project fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of<br>December 31, 2024, the ending balance of the borrowing amounts to USD 1.02 million.
---	---
2)	The Company has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation<br>to foreign currency exchangeable bonds as of December 31, 2024.
---	---
(c)	As of December 31, 2024, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral<br>for long-term foreign currency borrowings.
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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

34. Commitments and Contingencies (cont’d)

(d)	Litigation in progress

The Company is involved in 4 lawsuits for contract payment amounted to ~~W~~500 million as defendant as of December 31, 2024. However, the Company has not recognized any provisions for these litigation cases since the Company does not believe it has a present obligation as of December 31, 2024.

(e)	The Company has a joint obligation with the company newly established through<br>spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.
(f)	As of December 31, 2024, the Company has been provided a payment guarantee of<br>~~W~~9,122 million from Seoul Guarantee Insurance in relation to license guarantees and others.
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(g)	As of December 31, 2024, the Company has entered into a credit line agreement with Woori Bank, with a<br>limit of ~~W~~20,000 million.
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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

35. 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~~	7,279				(43,659	)
Other accounts receivable			11,453				6,780
Prepaid expenses			(519	)			(880	)
Other current assets			(930	)			660
Other non-current assets			(3,573	)			2,453
Other accounts payable			6,078				3,882
Accrued expenses			4,145				(1,623	)
Advances received			3,185				(374	)
Withholdings			(933	)			721
Unearned revenue			(1,251	)			957
Other current liabilities			(8,328	)			(4,768	)
Payments of severance benefits			(11,583	)			(5,173	)
Plan assets			(3,000	)			(2,000	)
		~~W~~	2,023				(43,024	)

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

35. Statements of Cash Flows (cont’d)

(b)	Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023<br>were as follows:
1)	For the year ended December 31, 2024
---	---
(in millions of Won)		Liabilities
---	---	---	---	---	---	---	---	---	---	---	---
		Long-termborrowings				Dividendpayable				Long-termfinancialliabilities
Beginning		~~W~~	1,758,007				3,087				29,962
Changes from financing cash flows			(1,542,400	)			(758,194	)			3,148
Effect of changes in foreign exchange rates			57,809				—				—
Changes in fair values			(239,120	)			—				—
Loss on bond redemption			6,258				—				—
Other changes:
Decrease in retained earnings			—				758,123				—
Ending		~~W~~	40,554				3,016				33,110
2)	For the year ended December 31, 2023
---	---
(in millions of Won)		Liabilities
---	---	---	---	---	---	---	---	---	---	---	---
		Short-termborrowings				Dividendpayable				Long-termfinancialliabilities
Beginning		~~W~~	1,359,587				3,079				26,181
Changes from financing cash flows			—				(720,762	)			3,781
Effect of changes in foreign exchange rates			92,858				—				—
Changes in fair values			305,562				—				—
Other changes:
Decrease in retained earnings			—				720,770				—
Ending		~~W~~	1,758,007				3,087				29,962
(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~~	2,266				18,380
Account payables due to property, plant and equipment and Intangible assets			465				(2,745	)
Retirement of treasury shares		~~W~~	431,107				—
		433,838				15,635

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POSCO HOLDINGS INC.

Notes to the Separate Financial Statements, Continued

As of December 31, 2024 and 2023

36. 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.
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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 the separate financial statements of the Company for the year ended December 31, 2024 in accordance with the Article 8 of the Act on External Audit of StockCompanies.

Attachments:

1.	Independent auditor’s report on internal control over financial reporting
2.	Reporting on the operating status of internal control over financial reporting
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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.’s (the “Company”) 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 Company’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 separate statement of financial position as of December 31, 2024, and the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the separate financial statements, including a summary of material accounting policy information, of the Company, and our report dated March 12, 2025 expressed an unqualified opinion thereon.

Basisfor 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 Company 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 Company’s ICFR process.

Auditor’s responsibilities for the audit of ICFR

Our responsibility is to express an opinion on the Company’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.

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ICFR definition and 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 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 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 financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements of the 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 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 Company’s ICFR and may result in modifications to this report.

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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 the POSCO HOLDINGS INC. (the “Company”), assessed the status of the design and operation of the Company’s Internal Control over Financial Reporting (“ICFR”) as of December 31, 2024.

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

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

We used, as the basis for the design and operation of the Company’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 Company’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

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