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Investments in Associates and Joint ventures

12 Months Ended

Dec. 31, 2025

Investments in Associates and Joint ventures

11.	Investments in Associates and Joint ventures

(a)	Investments in associates and joint ventures as of December 31, 2024 and 2025 are as follows:


(in millions of Won)	2024		2025
Investments in associates	￦	1,632,386		1,844,618
Investments in joint ventures		3,106,407		3,135,535

	￦	4,738,793		4,980,153

(b)	Details of investments in associates as of December 31, 2024 and 2025 are as follows:


(in millions of Won)	Number of shares		Ownership (%)		Acquisition cost		Book value
Company	Number of shares		Ownership (%)		Acquisition cost		2024		2025
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1)		4,507,138		34.00	￦	473,093	￦	392,269		421,699
Chun-cheon Energy Co., Ltd(*1)		17,308,143		49.10		86,541		14,054		16,685
Pocheon-Hwado Highway Corp.(*1)		7,109,230		27.89		35,546		14,834		17,194
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		944,920		29.53		4,725		12,401		12,096
PCC Amberstone Private Equity Fund 1(*2)		3,077,195,168		8.80		3,077		6,181		2,791
Others(*1)								122,688		134,363

								562,427		604,828

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		50,082		25.04		87,962		279,349		263,375
9404-5515 Quebec Inc.		284,463,243		25.85		328,509		426,276		411,602
AMCI (WA) PTY LTD		49		49.00		209,664		68,478		162,606
KOREA LNG LTD.		2,400		20.00		135,205		25,622		19,524
PT. Wampu Electric Power(*1)		8,708,400		20.00		10,054		17,680		16,483
POS-SeAH Steel Wire(Nantong) Co., Ltd.		50		25.00		4,723		10,713		11,994
M RES NSW HCC II Pty Ltd(*3)		72,000,000		92.31		104,511		—		101,884
Others(*1)								241,841		252,322

								1,069,959		1,239,790

							￦	1,632,386		1,844,618

(*1)	As of December 31, 2024 and 2025, investments in associates amounting to ￦ 452,614 million and ￦ 486,995 million, respectively, are provided as collateral in relation to the associates’ borrowings.

(*2)	As of December 31, 2025, the entity is classified as an investment in associates since the Company has significant influence over the investee although the Company’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.

(*3)	As of December 31, 2025, the entitiy is classified as an investment in an associate as the Company is considered to have significant influence based on the composition of the Board of Directors although the Company’s ownership interest is more than a majority.

(c)	Details of investments in joint ventures as of December 31, 2024 and 2025 are as follows:


(in millions of Won)	Number of shares		Ownership (%)		Acquisition cost		Book value
Company	Number of shares		Ownership (%)		Acquisition cost		2024		2025
[Domestic]
POSCO MC MATERIALS		11,568,000		60.00	￦	115,680	￦	153,839		146,038
SNNC		18,130,000		49.00		90,650		38,046		2,364
Others								10,042		12,702

								201,927		161,104

[Foreign]
Roy Hill Holdings Pty Ltd(*1)		13,117,972		12.50		1,528,672		1,397,824		1,441,376
POSCO-NPS Niobium LLC		325,050,000		50.00		364,609		477,898		466,492
KOBRASCO		2,010,719,185		50.00		32,950		119,820		126,943
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		—		25.00		61,961		126,906		132,616
PT NICOLE METAL INDUSTRY		152,764,706		49.00		603,178		578,604		649,462
HBIS-POSCO Automotive Steel Co., Ltd		—		50.00		235,251		179,841		134,404
Others								23,587		23,138

								2,904,480		2,974,431

							￦	3,106,407		3,135,535

(*1)

As of December 31, 2024 and 2025, the investments in joint ventures are provided as collateral in relation to the joint ventures’ borrowings.

(d)	Changes in investments in associates and joint ventures for the years ended December 31, 2024 and 2025 are as follows:

For the year ended December 31, 2024


(in millions of Won)
Company	December 31, 2023 Book value		Acquisition		Dividends			Share of profits (losses)			Other increase (decrease)(*1)			December 31, 2024 Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	￦	323,521		25,680		(10,993	)		54,140			(79	)		392,269
SNNC		100,692		—		—			(61,898	)		(748	)		38,046
Chun-cheon Energy Co., Ltd		15,040		—		—			1,807			(2,793	)		14,054
Pocheon-Hwado Highway Corp.		23,998		—		—			(9,164	)		—			14,834
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		13,967		—		—			(384	)		(1,182	)		12,401
PCC Amberstone Private Equity Fund 1		8,904		175		(490	)		(484	)		(1,924	)		6,181
POSCO MC MATERIALS		155,748		—		(1,800	)		403			(512	)		153,839
Others		150,985		12,362		(4,999	)		(6,802	)		(18,816	)		132,730

		792,855		38,217		(18,282	)		(22,382	)		(26,054	)		764,354

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		287,282		—		(64,208	)		45,923			10,352			279,349
AES Mong Duong Power Company Limited(*2)		230,699		—		(34,821	)		(82,075	)		(113,803	)		—
9404-5515 Quebec Inc.		346,724		—		(17,764	)		35,241			62,075			426,276
AMCI (WA) PTY LTD		60,225		—		—			(5,127	)		13,380			68,478
NCR LLC		253,121		4,275		—			(266,425	)		9,029			—
KOREA LNG LTD.		58,759		—		(17,829	)		17,714			(33,022	)		25,622
Nickel Mining Company SAS		87,967		—		—			(94,353	)		6,386			—
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		105,300		—		—			(117,143	)		11,843			—
PT. Wampu Electric Power		15,632		—		(1,764	)		1,238			2,574			17,680
POS-SeAH Steel Wire(Nantong) Co., Ltd.		8,642		—		—			573			1,498			10,713
Roy Hill Holdings Pty Ltd		1,400,009		—		(284,541	)		203,130			79,226			1,397,824
POSCO-NPS Niobium LLC		419,192		—		(29,225	)		29,336			58,595			477,898
KOBRASCO		99,768		—		(5,761	)		37,914			(12,101	)		119,820
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		111,001		—		(10,772	)		14,207			12,470			126,906
DMSA/AMSA		16,572		—		—			(17,299	)		727			—
PT NICOLE METAL INDUSTRY		284,351		247,824		—			(315	)		46,744			578,604
HBIS-POSCO Automotive Steel Co., Ltd		208,765		—		—			(49,480	)		20,556			179,841
Others		233,400		7,860		(26,222	)		12,865			37,525			265,428

		4,227,409		259,959		(492,907	)		(234,076	)		214,054			3,974,439

	￦	5,020,264		298,176		(511,189	)		(256,458	)		188,000			4,738,793

(*1)	Other increase (decrease) represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others during the year ended December 31, 2024.

(*2)	During the year ended December 31, 2024, the Company determined to sell AES Mong Duong Power Company Limited and classified it as assets held for sale.

For the year ended December 31, 2025


(in millions of Won)
Company	December 31, 2024 Book value		Acquisition		Dividends			Share of profits (losses)			Other increase (decrease)(*1)			December 31, 2025 Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	￦	392,269		17,509		(2,795	)		7,595			7,121			421,699
SNNC		38,046		—		—			(35,826	)		144			2,364
Chun-cheon Energy Co., Ltd		14,054		—		—			2,016			615			16,685
Pocheon-Hwado Highway Corp.		14,834		—		—			2,360			—			17,194
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		12,401		—		—			(306	)		1			12,096
PCC Amberstone Private Equity Fund 1		6,181		—		(227	)		(469	)		(2,694	)		2,791
POSCO MC MATERIALS		153,839		—		(3,000	)		(5,072	)		271			146,038
Others		132,730		25,597		(2,216	)		(2,445	)		(6,602	)		147,064

		764,354		43,106		(8,238	)		(32,147	)		(1,144	)		765,931

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		279,349		—		(37,273	)		57,362			(36,063	)		263,375
9404-5515 Quebec Inc.		426,276		—		(21,180	)		12,359			(5,853	)		411,602
AMCI (WA) PTY LTD		68,478		—		—			95,188			(1,060	)		162,606
KOREA LNG LTD.		25,622		—		(5,040	)		5,192			(6,250	)		19,524
PT. Wampu Electric Power		17,680		—		(1,708	)		739			(228	)		16,483
POS-SeAH Steel Wire(Nantong) Co., Ltd.		10,713		—		—			983			298			11,994
Roy Hill Holdings Pty Ltd		1,397,824		—		(213,794	)		161,274			96,072			1,441,376
POSCO-NPS Niobium LLC		477,898		—		(44,955	)		43,229			(9,680	)		466,492
KOBRASCO		119,820		—		(22,955	)		17,761			12,317			126,943
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		126,906		—		(11,440	)		15,399			1,751			132,616
PT NICOLE METAL INDUSTRY(*2)		578,604		62,574		—			19,497			(11,213	)		649,462
HBIS-POSCO Automotive Steel Co., Ltd		179,841		—		—			(47,669	)		2,232			134,404
M RES NSW HCC II Pty Ltd		—		104,511		—			(2,210	)		(417	)		101,884
Others		265,428		3,088		(9,526	)		2,953			13,518			275,461

		3,974,439		170,173		(367,871	)		382,057			55,424			4,214,222

	￦	4,738,793		213,279		(376,109	)		349,910			54,280			4,980,153

(*1)	Other increase (decrease) represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others for the year ended December 31, 2025.

(*2)	For the year ended December 31, 2025, the Company acquired an additional investment in a joint venture amounting to ￦ 62,574 million by participating in a capital increase of PT N I COLE METAL INDUSTRY for an investment in a nickel pyrometallurgical plant in Indonesia.

(e)	Summarized financial information of associates and joint ventures as of and for the years ended December 31, 2024 and 2025 are as follows:

As of and for the year ended December 31, 2024


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

As of and for the year December 31, 2025


(in millions of Won)
Company	Assets		Liabilities		Equity (deficit)			Sales		Net income (loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.	￦	5,186,881		4,361,206		825,675			638,593		23,070
SNNC		553,862		531,702		22,160			767,857		(73,652	)
Chun-cheon Energy Co., Ltd		505,987		382,416		123,571			363,995		377
Pocheon-Hwado Highway Corp.		683,282		584,471		98,811			24,289		7,364
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		13,340		2,694		10,646			1,050		(1,049	)
PCC Amberstone Private Equity Fund 1		33,795		2,067		31,728			891		(5,329	)
POSCO MC MATERIALS		349,737		104,830		244,907			205,386		(8,479	)

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		1,445,230		393,409		1,051,821			462,017		229,086
9404-5515 Quebec Inc.		1,631,812		21		1,631,791			—		47,813
FQM Australia Holdings Pty Ltd		57,067		1,579,336		(1,522,269	)		—		(96,001	)
KOREA LNG LTD.		97,944		325		97,619			28,117		25,960
Nickel Mining Company SAS		491,050		303,284		187,766			187,021		(70,342	)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		340,488		71,616		268,872			187,600		(21,282	)
PT. Wampu Electric Power		190,896		111,514		79,382			19,108		3,693
POS-SeAH Steel Wire(Nantong) Co., Ltd.		99,974		55,384		44,590			151,451		3,814
Roy Hill Holdings Pty Ltd		11,118,720		2,625,843		8,492,877			7,209,853		1,641,837
POSCO-NPS Niobium LLC		932,780		—		932,780			—		79,937
KOBRASCO		276,085		22,804		253,281			54,101		35,522
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		1,272,968		769,371		503,597			1,455,502		61,595
DMSA/AMSA		875,900		1,692,942		(817,042	)		856,215		(684,937	)
HBIS-POSCO Automotive Steel Co., Ltd		964,614		679,930		284,684			625,983		(97,928	)
PT NICOLE METAL INDUSTRY		1,073,184		172,335		900,849			701,059		40,197
M RES NSW HCC II Pty Ltd		109,139		3		109,136			—		(2,761	)

(f)	The amounts of equity method losses not recognized due to the suspension of the application of the equity method to associates and join ventures for the year ended December 31, 2025 are as follows:


(in millions of Won)
Company	Beginning balance		Increase		Ending balance
New Songdo International City Development, LLC	￦	112,305		32,087		144,392
UITrans LRT Co., Ltd.		48,496		2,196		50,692
FQM Australia Holdings Pty Ltd		355,197		23,352		378,549
Nickel Mining Company SAS		—		29,608		29,608
Others		61,733		69,554		131,287

	￦	577,731		156,797		734,528