Provisions

12 Months Ended

Dec. 31, 2025

20. Provisions

(a)	Provisions as of December 31, 2024 and 2025 are as follows:


(in millions of Won)	2024				2025
	Current		Non-current		Current		Non-current
Provision for bonus payments	￦	121,757		70,104		119,010		101,039
Provision for construction warranties		49,659		137,201		39,393		148,673
Provision for legal contingencies and claims(*1)		17,960		78,486		5,685		45,363
Provision for the restoration		10,041		197,810		2,979		196,651
Others(*2)		196,613		96,958		404,581		158,603

	￦	396,030		580,559		571,648		650,329

(*1)	The Company recognized probable outflow of resources amounting to ￦ 80,220 million and ￦ 35,061 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Company as of December 31, 2024 and 2025, respectively.

(*2)

According to the

Act on the promotion of the development, use and diffusion of new and renewable energy

, POSCO INTERNATIONAL Corporation is obliged to supply a certain amount of power, generated by new and renewable energy sources. In accordance with the Act, POSCO INTERNATIONAL Corporation estimated the cost required to fulfill its obligations, such as insufficient supply of power using new and renewable energy to be borne, and as of December 31, 2024 and 2025, the Company recognized

￦

64,249 million and

￦

45,150 million respectively, as provision.

(b)	The following are the key assumptions concerning the future and other key sources of estimation uncertainties at the end of the reporting period.


		Key assumptions for the estimation
Provision for bonus payments		Estimations based on financial performance and working service rendered
Provision for construction warranties		Estimations based on historical warranty data
Provision for legal contingencies and claims		Estimations based on the degree of probability of an unfavorable outcome and the ability to make a sufficient reliable estimate of the amount of loss

(c)	Changes in provisions for the years ended December 31, 2024 and 2025 are as follows:

For the year ended December 31, 2024


(in millions of Won)	Beginning		Increase		Utilization			Reversal			Others(*1)			Ending
Provision for bonus payments	￦	184,391		224,339		(187,004	)		(29,461	)		(404	)		191,861
Provision for construction warranties		196,758		53,244		(48,471	)		(8,274	)		(6,397	)		186,860
Provision for legal contingencies and claims		73,062		54,929		(12,964	)		(19,743	)		1,162			96,446
Provision for the restoration		175,820		28,917		(8,311	)		(6,485	)		17,910			207,851
Others		257,722		255,624		(151,362	)		(76,790	)		8,377			293,571

	￦	887,753		617,053		(408,112	)		(140,753)			20,648			976,589

(*1)	Includes adjustments of foreign currency translation differences and others.

For the year ended December 31, 2025


(in millions of Won)	Beginning		Increase		Business combination(*1)		Utilization			Reversal			Others(*2)			Ending
Provision for bonus payments	￦	191,861		159,990		—		(133,528	)		(2,634	)		4,360			220,049
Provision for construction warranties		186,860		43,891		—		(35,139	)		(6,005	)		(1,541	)		188,066
Provision for legal contingencies and claims		96,446		10,856		—		(23,507	)		(15,782	)		(16,965	)		51,048
Provision for the restoration		207,851		26,853		—		(4,953	)		(4,843	)		(25,278	)		199,630
Others		293,571		423,940		138,212		(29,447	)		(68,387	)		(194,705	)		563,184

	￦	976,589		665,530		138,212		(226,574	)		(97,651	)		(234,129	)		1,221,977

(*1)	During the year ended December 31, 2025, PT. Prime Agri Resources was newly consolidated as a subsidiary, and the Company included the resulting increase in provisions as part of the business combination.

(*2)	Includes adjustments of foreign currency translation differences and others.