[6-K] POSCO Holdings Inc. American Current Report (Foreign Issuer)

[6-K] POSCO Holdings Inc. American Current Report (Foreign Issuer)

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Q: What are POSCO HOLDINGS' total assets and equity as reported in the 6‑K for June 30, 2025 (PKX)?

Q: What major capital investments did POSCO disclose in this filing (PKX)?

Q: What operational risks or market headwinds does POSCO cite in the filing (PKX)?

What are POSCO HOLDINGS' total assets and equity as reported in the 6‑K for June 30, 2025 (PKX)?

How much did POSCO HOLDINGS report in sales for the six months ended June 30, 2025 (PKX)?

What major capital investments did POSCO disclose in this filing (PKX)?

Does POSCO disclose any decarbonization or hydrogen initiatives in the 6‑K (PKX)?

What operational risks or market headwinds does POSCO cite in the filing (PKX)?

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The filing reports Total assets of W101,154,820 million and equity attributable to owners of W54,570,265 million as of June 30, 2025 (unaudited).

The company discloses major programmes including KRW 85,670 hundred‑million total investment for cathode/anode and lithium commercialization facilities, with KRW 57,883 hundred‑million already invested.

The filing cites global uncertainties driven by U.S. tariffs and sluggish demand in key industries (including China’s housing sector) as contributors to year‑on‑year declines in some business metrics.

Filing Impact

(Low)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

POSCO HOLDINGS filed an interim 6-K with unaudited condensed consolidated financial information for the six months ended June 30, 2025. The report shows Total assets of W101,154,820 million and Total liabilities of W57,497,149 million as of June 30, 2025, with equity attributable to owners of the controlling company of W54,570,265 million. For the six-month period, consolidated sales were W17,555,587 million. The filing reiterates the group strategy to expand beyond steel into infrastructure, energy and rechargeable battery materials and discloses major capital programmes, including a KRW 85,670 hundred‑million investment plan for cathode/anode and lithium commercialization facilities. The company describes a decarbonization roadmap (HyREX demo plant) and ongoing LNG, gas and wind projects. The filing also notes market headwinds from U.S. tariffs and sluggish demand in key industries.

TL;DR: Balance sheet remains large and leveraged; mid‑year revenues show resilience while investments target batteries and energy transition.

The interim filing presents a substantial asset base (W101.2 trillion) and equity of W54.6 trillion, indicating significant scale and capital intensity. Reported six‑month sales of W17.6 trillion reflect ongoing operations across steel, infrastructure and battery materials. Material CAPEX programmes are disclosed (notably the KRW 85,670 hundred‑million battery materials programme) which signal a strategic pivot to diversify away from commoditized steel. Market commentary in the filing highlights external demand weakness and tariff risks, which could pressure near‑term earnings despite long‑term strategic investments.

TL;DR: Governance disclosures show active board committee activity and standard committee composition; multiple committee approvals recorded.

The filing documents regular governance activity: standing committees (Audit, Finance, ESG, Director Candidate Recommendation and others) and frequent meetings through mid‑2025. Committee compositions are disclosed (majority outside directors on audit and ESG committees). The report records approvals and deliberations on asset sales and investments, demonstrating board oversight of strategic transactions. Disclosure of treasury shares, issued share counts and committee decisions improves transparency for investors evaluating stewardship and related‑party actions.

08/29/2025 - 06:02 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 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 POSCO HOLDINGS INC.’s Interim Report (2Q) for the year 2025.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		POSCO HOLDINGS INC.
		(Registrant)

Date: August 29, 2025	By	/s/ Han, Young-Ah
		(Signature)
		Name: Han, Young-Ah
		Title: Senior Vice President

Exhibit 99.1

LOGO

INTERIM REPORT

(From January 1, 2025 to June 30, 2025)

THIS IS AN ENGLISH TRANSLATION OF THE BUSINESS REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND NON-CONSOLIDATED BASIS IN ACCORDANCE WITH THE KOREAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS (K-IFRS) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

INTERIM REPORT

(From January 1, 2025 to June 30, 2025)

To:	Korean Financial Services Commission and Korea Exchange

/s/ Lee, Ju tae

Lee, Ju tae

President and Representative Director

POSCO HOLDINGS INC.

6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-54-220-0114

/s/ Han, Young-Ah

Han, Young-Ah

Head of IR office, Senior Vice President

POSCO HOLDINGS INC.

6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-054-220-0114

TABLE OF CONTENTS


I.		Overview

II.		Business

III.		Financial Statements

IV.		Corporate Governance

Attachment: Independent auditors’ review reports on consolidated and separate financial statements

I. OVERVIEW

1. Scope of Business

A. POSCO HOLDINGS INC. (the “Company”, formerly POSCO)¹⁾

(1) Change of the company name: At the Extraordinary General Meeting of Shareholders convened on January 28, 2022, POSCO (the “Company”) approved the vertical spin-off plan, as proposed. Therefore, the name of the company was changed from ‘POSCO’ to ‘POSCO HOLDINGS INC.,’ effective March 2, 2022.

The Company’s business scope is as follows:


Before the vertical Spin-off (Beginning of 2022)		After the vertical Spin-off (As of the date of submission)

(1) To manufacture, market, promote, sell and distribute iron, steel and rolled products;		(1) To engage in holding business of controlling the business of, and guiding, organizing and improving the management of, subsidiaries by acquiring and owning the shares or ownership interests in subsidiaries (including sub-subsidiaries and companies controlled by such sub-subsidiaries; collectively “subsidiaries”);
(2) To engage in harbor loading and unloading, transportation and warehousing businesses;
(3) To engage in the management of professional athletic organizations;

(4) To engage in the supply of gas and power generation as well as in the distribution business thereof and in the resources development business;		(2) To engage in the management and licensing of intellectual property rights including brands and trademarks;

(5) To engage in leasing of real estate and distribution businesses;		(3) To engage in the investment related to start-up assistance and new technology;

(6) To engage in the supply of district heating business;		(4) To engage in market research, management advisory and consulting services;

(7) To engage in marine transportation, processing and sales of minerals within or outside of Korea;		(5) To engage in technology research and commissioned services;

(8) To engage in educational service and other services related to business;		(6) To engage in matters entrusted by subsidiaries to assist the subsidiaries’ businesses;

(9) To engage in manufacture, process and sale of non-ferrous metal;		(7) To engage in the supply of gas such as hydrogen and resources development business;

(10) To engage in technology license sales and engineering business; and		(8) To engage in leasing of real estate and distribution businesses; and

(11) To engage in all other conducts, activities or businesses which are related, directly or indirectly, to the attainment and continuation of the foregoing purposes		(9) To engage in all other conducts, activities or businesses which are related, directly or indirectly, to the attainment and continuation of the foregoing purposes.

2. Business Organization

A. Highlights of the Company’s Business Organization

(1) Location of the Headquarters


	Before the vertical Spin-off (Beginning of 2022)	After the vertical Spin-off (As of the date of submission)
Name	POSCO	POSCO HOLDINGS INC.
Location of the Headquarters	6261 Donghaean-ro (Goedong-dong), Nam-gu, Pohang-si, Gyeongsangbuk -do, Korea	6261 Donghaean-ro (Goedong-dong), Nam-gu, Pohang-si, Gyeongsangbuk -do, Korea

(2) Summary of consolidated subsidiaries

(Number of companies)


	Number of consolidated subsidiaries								Number of major subsidiaries
	Jan 1, 2025		Increase		Decrease		June 30, 2025		Number of major subsidiaries
Listed		6		—		—		6		6
Unlisted		187		2		2		187		82
Total		193		2		2		193		88

*	The number of consolidated companies above does not include POSCO HOLDINGS.

*	Among listed corporations, there is one overseas corporation

(5 domestic corporations and 1 overseas corporation).

*	Newly included: POSCO Deep Tech Technology Finance Fund, FUTURE GRAPH CO., LTD.

*	Excluded subsidiaries: SANPU TRADING Co., Ltd., NEH Co., Ltd.

(3) Major Changes in the Board of Directors


Date of Change	Type of General Meeting of Shareholders	Appointment		Expiration of Term
Date of Change	Type of General Meeting of Shareholders	New	Re-appointment	Expiration of Term
March 12, 2021	Ordinary	Inside Director CHUNG, Chang Hwa	Representative Director CHOI, Jeong Woo	Inside Director CHANG, In Hwa
		Outside Director YOO, Young Sook	Representative Director KIM, Hag Dong	Outside Director KIM, Joo Hyun
		Outside Director KWON, Tae-Kyun	Representative Director CHON, Jung Son	Outside Director BAHK, Byong Won
		—	Inside Director JEONG, Tak	—
			Outside Director KIM, Sung Jin	—


Date of Change	Type of General Meeting of Shareholders	Appointment		Expiration of Term
Date of Change	Type of General Meeting of Shareholders	New	Re-appointment	Expiration of Term
March 18, 2022	Ordinary	Inside Director YOO, Byeong Og	Representative Director CHON, Jung Son	Representative Director KIM, Hag Dong
		Non-standing Director KIM, Hag Dong	Inside Director CHUNG, Chang Hwa	Inside Director JEONG, Tak
		Outside Director YOO, Jin Nyong*	Outside Director PAHK, Heui Jae	Outside Director KIM, Shin Bae
		Outside Director SOHN, Sung Kyu*		Outside Director CHUNG, Moon Ki
March 17, 2023	Ordinary	Representative Director JEONG, Ki Seop	Inside Director YOO, Byeong Og	Representative Director CHON, Jung Son
		Inside Director KIM, Ji Yong	Non-standing Director KIM, Hag Dong	Inside Director CHUNG, Chang Hwa
		Outside Director KIM, Joon Gi*		Outside Director CHANG, Seung Wha
March 21, 2024	Ordinary	Representative Director CHANG, In Hwa	Representative Director JEONG, Ki Seop	Representative Director CHOI, Jeong Woo
		Inside Director KIM, Jun Hyung	Outside Director YOO, Young Sook	Inside Director KIM, Ji Yong
		Inside Director KIM, Ki Soo	Outside Director KWON, Tae Kyun	Inside Director YOO, Byeong Og
		Outside Director PARK, Sung Wook**		Outside Director KIM, Sung Jin
				Outside Director PAHK, Heui Jae***
March 20, 2025	Ordinary	Representative Director LEE, Ju tae	Inside Director KIM, Ki Soo	Representative Director CHANG, In Hwa
		Inside Director CHUN, Sung Lae	Outside Director YOO, Jin Nyong	Inside Director KIM, Jun Hyung
			Outside Director SOHN, Sung Kyu****

*	The Outside Director KIM, Joon Gi was newly appointed as Audit Committee Member at the General Meeting of Shareholders held on March 17, 2023.

**	The newly appointed Outside Director PARK, Sung Wook was elected as an Outside Director to become an Audit Committee Member at the General Meeting of Shareholders held on March 21, 2024.

***	The Outside Director PAHK, Heui Jae voluntarily resigned from the General Meeting of Shareholders held on March 21, 2024.

****	The Outside Director SOHN, Sung Kyu was re-appointed as Audit Committee Member at the General Meeting of Shareholders held on March 20, 2025.

(4) Changes of the Major Shareholders of POSCO HOLDINGS INC.

Since January 30, 2007, National Pension Service holds the largest number of common shares of POSCO HOLDINGS INC.

a) From SK Telecom to National Pension Service

b) Date of Change: January 30, 2007

For further reference, please refer to the public disclosures of changes in common shares of the largest shareholder on Financial Supervisory Service website (http://dart.fss.or.kr)

B. POSCO HOLDINGS’ Merger, Acquisition and Handover of Businesses

(1) January 2019: Small scale merger of POSCO Processing & Service Co., Ltd into POSCO

(2) September 2019: Handover of business right of LNG terminal to POSCO ENERGY

(3) September 2019: Small scale merger of By-Product Gas Generation Business from POSCO ENERGY into POSCO after spin-off

(4) January 2022: Handover of logistic related business to POSCO Terminal

(5) March 2022: Completion of Vertical Spin-off


Classification	Company Name	Business Unit
Surviving Company	POSCO HOLDINGS INC.	Development of future business portfolios and management of group’s businesses

New Company	POSCO	Production and sale of steel

3. Changes in Share Capital

There have been no changes in share capital in the last 5 years.


	(Unit: Share, KRW/share, KRW million)
Type	Details	As of June 30, 2025		As of December 31, 2024		As of December 31, 2023
Common Stock	Total number of issued shares		**80,932,952		*82,624,377		84,571,230
	Par value (KRW)		5,000		5,000		5,000
	Share capital		482,403		482,403		482,403
Preferred Stock	Total number of issued shares		—		—		—
	Par value (KRW)		—		—		—
	Share capital		—		—		—
Others	Total number of issued shares		—		—		—
	Par value (KRW)		—		—		—
	Share capital		—		—		—
Sum	Share capital		482,403		482,403		482,403

*	Due to the decision to cancel treasury shares by the resolution of the board of directors on July 12, 2024, the total number of shares issued by the company was decreased from 84,571,230 to 82,624,377, and there is no change in capital.

**	Due to the decision to cancel treasury shares by the resolution of the board of directors on February 19, 2025, the total number of shares issued by the company was decreased from 82,624,377 to 80,932,952, and there is no change in capital.

4. Other Information Regarding Shares

A. Total Number of Shares


		(As of June 30, 2025)
Authorized Shares		Issued Shares
200,000,000		80,932,952

ø	Currency of the Republic of Korea is the Korean Won (“KRW”).

ø	Par Value: KRW 5,000 per share

Due to the decision to cancel treasury shares by the resolution of the board of directors on February 19, 2025, the total number of shares issued by the company was decreased from 82,624,377 to 80,932,952 without any change in capital. For more detailed information, please refer to the ‘Cancellation of Treasury Shares’ disclosed on February 19, 2025, at SEC.

B. Treasury Shares Acquisition and Disposal

(As of June 30, 2025)


Method of Purchase	Type	Beginning Balance		Increased		Decreased		Cancelled		Ending Balance		remark
Direct	Common Stock		3,687,724		—		—		1,691,425		1,996,299		(1	)
Trust Contract			3,315,874		—		—		—		3,315,874

Total			7,003,598		—		—		1,691,425		5,312,173		(2	)

(1) On February 19, 2025, the board of directors resolved to cancel 1,691,425 previously acquired treasury shares, reducing the number of treasury shares from 7,003,598 to 5,312,173. For more detail, please refer to the ‘Cancellation of Treasury Shares’ disclosed on February 19, 2025, to the SEC.

(2) The aforementioned number of treasury shares includes 83,671 treasury shares which are subject to the exchange of exchangeable bonds issued by the company on September 1, 2021. The treasury shares subject to this exchange is finalized at the time the exchange right is exercised and is currently deposited with the Korea Securities Depository.

Changes after the reporting date (June 30, 2025) of the disclosure

- On August 12, 2025, the board of directors resolved to pay a cash dividend of 2,500 won per common share for the second quarter, and an additional 1,528 treasury shares subject to exchange bonds were deposited. As of the date of this submission, the number of deposited shares is 86,611. For more detailed information, please refer to the ‘Adjustment of Conversion Price, Exercise Price of New Share Subscription Rights, and Exchange Price’ announcement dated August 12, 2025.

5. Voting Rights


	(As of June 30, 2025)
Classification	Number of Common Shares		Remarks
(1) Number of Issued Shares		80,932,952		—
(2) Shares without Voting Rights		5,312,173		Treasury stock
(3) Shares with Voting Rights		75,620,779		—

6. Earnings and Dividends


	(Unit: KRW million)
	2025.1H		2024		2023
(Consolidated) Profit*		462,161		1,094,917		1,698,092
(Separate) Profit		634,903		1,621,282		799,578
Earnings per Share** (Consolidated, KRW)		6,112		14,451		22,382
Cash Dividend Paid		378,104		757,485		758,762
Pay-out Ratio (Consolidated, %)		81.8		69.2		44.7
Dividend per Share (KRW)		5,000		10,000		10,000
Dividend Yield (%)		1.7		4.0		2.4

*	(Consolidated) Profit: Profit attributable to owners of the controlling company

**	Earnings per Share is based on consolidated financial statement prepared in K-IFRS

Changes after the record date (June 30, 2025) of the disclosure

- On August 12, 2025 at the Board of Directors meeting, POSCO HOLDINGS INC. resolved to pay KRW 2,500/share of cash dividend (Total Cash Dividend Amount KRW189.1 billion) for 2Q 2025.

7. Stock Price and Trading Volume

The stock prices and trading volumes of POSCO HOLDINGS INC. for the last 6 months are as follows.

A. The Korean Stock Market

(Unit: KRW/share, Thousand shares)


		January 2025	February 2025	March 2025	April 2025	May 2025	June 2025
Common share	Highest Price	271,000	282,000	332,000	279,500	263,000	269,500
	Lowest Price	250,000	230,500	268,000	249,500	233,500	244,000
	Average Price	260,556	255,150	303,575	259,341	249,368	259,737
Trading volume	Daily highest	509	1,048	1,586	639	441	496
	Daily lowest	154	180	209	129	132	208
	Monthly	5,222	8,890	11,173	6,495	4,599	6,329

B. New York Stock Exchange

(Unit: USD/ADS*, Thousand ADS*)


		January 2025	February 2025	March 2025	April 2025	May 2025	June 2025
American Depositary Share (ADS)	Highest Price	46.26	48.47	55.32	47.44	47.02	49.85
American Depositary Share (ADS)	Lowest Price	42.56	39.82	45.51	41.43	42.75	44.31
	Average Price	44.87	43.92	51.13	45.16	45.20	47.71
Trading volume	Daily highest	286	588	1,530	871	537	254
	Daily lowest	97	114	147	110	106	81
	Monthly	3,956	5,653	10,640	8,149	4,026	3,019

*	ADS: One American Depositary Share represents one-fourth of one Common Share

II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

Steel, Infrastructure (Trading), Infrastructure (Construction), Infrastructure (Logistics and associated businesses), Rechargeable Battery Materials, and Others.

B. Summary of Financial Status of Segment


										(Unit: KRW million)
Business Segment	2025.1H					2024				2023
Business Segment	Sales		Operating Income (Loss)			Sales		Operating Income (Loss)		Sales		Operating Income (Loss)
Steel		29,843,266		1,059,636			62,200,920		1,636,808		63,538,698		2,556,779
Infrastructure (Trading)		21,221,133		583,281			42,903,253		1,113,710		42,943,752		1,133,512
Infrastructure (Construction)		3,836,040		(87,914	)		9,829,578		64,804		10,267,503		197,352
Infrastructure (Logistics and etc.)		1,757,015		41,223			4,139,201		147,603		3,945,953		202,010
Rechargeable Battery Materials		1,693,522		-241,804			3,829,851		-277,472		4,821,886		-161,334
Others		867,963		615,394			2,111,150		1,600,212		1,562,214		1,106,332
Total		59,218,939		1,969,816			125,013,953		4,285,664		127,080,006		5,034,651

*	Based on aggregation including internal transactions among affiliates.

*	‘Energy Materials’ segment was renamed as ‘Rechargeable Battery Materials’ by management decision in June 2025.

2. Business Status of Segments

A. Steel

There are 85 consolidated companies in the steel segment, e.g., POSCO, POSCO STEELEON, and overseas subsidiaries, including PT.Krakatau POSCO in Indonesia, POSCO (Zhangjiagang) Stainless Steel Co., Ltd. in China, and overseas processing centers.

∎ POSCO

(1) Summary of Business

POSCO produces steel components, such as hot rolled, cold rolled, and stainless steel, at Pohang Steelworks and Gwangyang Steelworks, of which latter is the largest in the world.

Steel is a key industry that has served a pivotal role in achieving national economic development. Steel is used as a basic material in diverse manufacturing businesses, such as automobiles, shipbuilding, home appliances, and construction; therefore, steel, by its nature, is intricately connected to the frontline industries.

In the first half of 2025, global crude steel production posted a moderate year-on-year decline, despite continued demand from emerging economies, such as India. The slowdown is attributed to the global uncertainties driven by U.S. tariffs and sluggish demand in key industries, including China’s housing sector.

Global Crude Steel Production


	(Million Ton, %)
Crude Steel Production	2025.1H			2024			2023
Global		934			1,839			1,850
Korea		31			64			67
(Ratio)		(3.3	%)		(3.5	%)		(3.6	%)

Source: worldsteel (www.worldsteel.org)

The steel industry is affected by the business cycle and fluctuations in the demand industry.

Therefore, steel demand is impacted by changes in the real economy as well as market conditions of demand industries, i.e., shipbuilding, automobiles, home appliance, and construction.

The steel industry is a capital- and technology-intensive industry that requires massive initial investment. Hence, steelmakers are focused on reducing production costs to achieve price competitiveness.

POSCO aims to maintain its competitive edge in the domestic market by strengthening long-term partnership with key customers and by devising comprehensive responses, such as marketing, R&D, technology services, and productions, to address global protectionism. In addition, we are expanding steel processing centers to meet the needs of global frontline industries, such as automobiles, shipbuilding, home appliances, and construction, while strengthening our global sales network by operating steel production bases in Indonesia (upstream) and India (cold-rolling mills). Additionally, we are seeking opportunities to expand overseas production capacity; one such example is the JV project completed with Hebei Steel in 2023.

On the production side, we are developing strategic, high value-added World Top Premium products and upgrading sales network to respond to the growing demand for next-generation, carbon-reduced steel to actively respond to the growing demand for next-generation, carbon-reduced steel in new mobility, low-carbon energy, and smart infrastructure. Furthermore, we aim to lead the global initiative to achieve carbon net-zero; hence we have developed a decarbonization roadmap, which includes the construction of a HyREX (hydrogen-based steelmaking) technology demo plant.

(2) Market Share


											(Million Ton, %)
Category	2025.1H					2024					2023
Category	Production		Market share			Production		Market share			Production		Market share
Crude Steel Production		31		100	%		64		100	%		67		100	%
POSCO		17		56	%		35		55	%		36		54	%
Others		14		44	%		29		45	%		31		46	%

Source: worldsteel (www.worldsteel.org)

The steel industry’s major demand sectors include automobiles, shipbuilding, and construction, in which steel is a key raw material. The company’s sales consists of approximately 52% domestic sales and 48% exports, with Japan, Europe, and Southeast Asia accounting for a significant portion of exports. We maintain a make-to-order production and sales system while keeping the proportion of direct sales to end-users in the domestic market at around 61% to secure sales stability.

The company has established a mid- to long-term roadmap to achieve net zero emissions by 2050. We are developing technologies to reduce carbon emissions in existing processes, introducing large-scale electric furnaces, and pursuing a phased transition of facilities and processes that includes commercialization of the HyREX (hydrogen-based steelmaking) process. At the same time, we are focusing company-wide efforts on securing a stable supply of carbon-reduced raw materials such as scrap and HBI. From 2026, we plan to produce carbon-reduced, high value-added products using electric furnaces.

Building on the expertise we accumulated on building and operating a Smart Factory since 2017, we are accelerating the implementation of the Intelligent Factory that connects all areas of business, from production, logistics, to office operations, with the Digital Twin technology.

Safety is our top priority and a core value of our corporate culture. We are reinforcing safety by identifying potential hazards in the workplace and ensuring compliance to safety standards, while also developing smart safety solutions utilizing AI and IoT technologies.

Even though POSCO is an unlisted company and therefore does not have any obligation to establish a special committee under the board of directors, we have created an ESG committee to strengthen our external communication with interested parties. Furthermore, we have also established an audit committee to support ESG governance. As a result, the company has been named Sustainability Champion by the World Steel Association — an honor awarded to leading companies in the ESG field — for four consecutive years.

∎ POSCO STEELEON

POSCO STEELEON offers differentiated value by developing new market and technology and by providing designs and solutions in both domestic and overseas surface-treated steel market.

The surface-treated steel market is divided into general-purpose and high-end segments. Competition is fierce in the general-purpose market because product technology is standardized and the market is flooded with low-priced Chinese products. On the other hand, we believe that the market for high-end material not only generates high added value but also has potential to grow in terms of size.

Despite challenges posed by oversupply of domestic and foreign steel products and slowdown in demand industries, POSCO STEELEON is striving to secure a stable profit base and expand market share by improving the competitiveness of high valued-added products, such as aluminum coated sheets, galvanized steel sheets with high corrosion resistance, and Print/Lami color steel sheets.

POSCO STEELEON is striving to strengthen its competitiveness in the high-end construction/exterior materials through research and development customized to customer needs. In addition, POSCO STEELEON is preparing to expand its overseas business; the company operates a color steel sheet production line (50,000 ton) and coated steel sheet production line (20,000 ton) in Yangon, Myanmar, securing a bridgehead in Southeast Asia, a region projected for rapid growth.

∎ POSCO M-TECH

(1) Summary of Business

POSCO M-TECH is a specialized supplier of packaging and supplementary materials for steel. This includes aluminum deoxidizers, which removes oversaturated oxygen in the steelmaking process. POSCO M-TECH continuously develops packaging machines and materials for steel products. The steel packaging business has enhanced cost competitiveness by reducing packaging materials and improving packaging quality, while the packaging equipment business has focused on developing automated equipment.

Business Areas


Business Areas	Major Goods and Services	Major Customer
Steel raw material business	Aluminum deoxidizer pellets, mini pellets, ingots and etc.	POSCO
Steel product packaging business	Steel packaging service, maintenance of packaging facilities and etc.
Engineering business	Steel Packaging Engineering, Mechanical Equipment and etc.
Consignment operation business	Ferromanangan factory and etc.

(2) Market Share


													(Ton)
Category	2025.1H					2024					2023
Category	Sales Volume		Market share			Sales Volume		Market share			Sales Volume		Market share
POSCO M-TECH		17,681		39.9	%		38,284		44.3	%		31,984		44.7	%
PJ Metal		26,911		60.1	%		48,231		55.7	%		39,600		55.3	%
Total		44,772		100.0	%		86,515		100.0	%		71,584		100.0	%

The exact market share of aluminum deoxidizers cannot be estimated since total domestic production and sales volume are not tallied.

B. Infrastructure [Trading]

There are 38 subsidiaries in the trading segment, including POSCO International.

∎ POSCO INTERNATIONAL

[Trading]

The industrial environment is becoming increasingly challenging as protectionism intensifies in major economies and global economic downturn continues. Nevertheless, POSCO International is pioneering new markets and businesses. Leveraging its long-accumulated know-how and extensive overseas network, the company is strengthening the value chains of its core businesses — including materials, mobility, and food — while fostering future growth through its bio business.

Market Share


	(Unit: USD million)
Category	2025.1H		2024.1H		Growth Rate
All Trading Companies in Korea		334,721		334,815		-0.03	%
POSCO International Corp.		3,957		4,239		-6.65	%

Source: Korea International Trade Association (www.kita.net)

Steel/Mobility business: Through collaboration with other POSCO Group affiliates, we are generating synergies to expand our business portfolio. We are in the process of establishing supply chains for the renewable energy industry and Hot Briquetted Iron (HBI) feedstock for the steelworks, while further strengthening our role in securing stable raw material supplies for rechargeable battery materials.

Motor core business: POSCO INTERNATIONAL started engaging in the electric vehicle (EV) motor core business with POSCO Mobility Solution, the company’s subsidiary. We plan to expand our motor core production to 7.5 million by 2030.

Palm farm in Indonesia: POSCO INTERNATIONAL has developed a palm plantation in Indonesia, establishing a local palm oil production system and gradually expanding sales. In December 2022, the company established another Crude Palm Oil (CPO) mill, expanding annual CPO production to approximately 250,000 tons. Furthermore, the company is pursuing sustainable palm farming through RSPO certification.

[Energy]

Global demand for natural gas remains strong, particularly with rising power demand from AI-driven growth of the digital industry. Asia’s surging energy demand is also boosting the oil and gas development sector. The company aims to enhance competitiveness in the energy business and ensure stable operations in a shifting market.

Myanmar Gas Field business: In February 2021, as part of the third phase of the development project, the company began EPCIC to install a gas compression platform to produce low-pressure gas from the reservoir. Since completing construction in April 2024, the company has been producing gas through the new facilities since May 2024. Additionally, in July 2025, we began construction on the fourth phase of the development project, which will secure additional reserves to sustain the current level of gas production, with plans to begin operation in 2027.

LNG business: The company began LNG trading in 2017, drawing on its expertise in developing international energy sources, to meet POSCO Group’s LNG demand. In 2023, POSCO INTERNATIONAL acquired POSCO Energy and obtained an additional value chain across the LNG business, from LNG import terminals to power generation.

Onshore gas business in Australia: For timely implementation of the Group’s decarbonization and hydrogen business strategies and to expand its existing energy business, currently centered in Myanmar, the company acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of Australia, that produces gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. Considering strong international oil prices and the shortage of domestic gas supply in eastern Australia, the company has launched additional development projects with the goal to triple gas production by 2025.

LNG terminal & connected business: The Gwangyang LNG Terminal, Korea’s first privately operated LNG import terminal, has a storage capacity of 930,000 kL across six tanks. Serving as a key facility in the LNG value chain, it plays a pivotal role in connecting upstream LNG production with the downstream gas supply to end-users. The company is pursuing phased expansion beyond Gwangyang to meet both local demand and captive demand within the Group, while actively expanding into LNG bunkering, ship commissioning, and trading businesses.

Power generation business: As the first private power generator in Korea, our Incheon LNG Combined Cycle Power Plant has been delivering reliable power supply to the Seoul metropolitan area for over 50 years. Located in Incheon’s Seo-gu district, the plant operates seven combined cycle power generators with total capacity of 3,412 MW, which accounts for about 9% of the region’s generation capacity. The power plant is a smart power generation facility, incorporating IoT and big data technologies in its operations.

Domestic onshore wind power business: In January 2015, the Sinan Green Energy acquired a business permit to run an onshore wind farm in Jaeun-myeon in Sinan-gun city of the Jeollanam-do province. We are operating 20 onshore wind power generators since their installation in 2019. With a generation capacity of 62.7 MW, this onshore wind power complex produces approximately 120,000 MWh of clean energy annually, which is equivalent to removing 49,000 tons of carbon dioxide emissions annually.

B. Infrastructure [Construction]

There are 25 subsidiaries in construction segment including POSCO E&C.

∎ POSCO E&C

POSCO E&C engages in primarily 3 businesses: plant, infrastructure and building works.

[Plant Business]

POSCO E&C has established a unique position in the domestic steel plant sector with extensive experience in supplying and constructing equipment for integrated steel mills and auxiliary facilities. The company has expanded into global markets, such as India, Brazil, and Indonesia, enhancing its reputation as a global player. Recently, the company has focused on carbon-reduced steel technologies and water electrolysis projects. In power generation, POSCO E&C was the first construction company to enter the South American market in 2006 to build coal-fired and gas combined cycle power plants in Chile, Peru, and Panama. The company is also expanding involvement in nuclear power projects, including large-scale plants and national projects like i-SMR. In addition, by being the first in the world to apply high-manganese steel in LNG tank construction, the company has participated in numerous domestic and overseas LNG terminal projects. We have also built multiple plants in Pohang, Gwangyang, Argentina, and North America to produce raw materials and components for the rechargeable battery.

[Infrastructure Business]

The company has an extensive track record in various sectors, including roads, bridges, airports, seaports, and water treatment, and continues to expand its presence in the world. It is currently undertaking large-scale private investment projects in Korea, such as the West Inland Expressway and the GTX-B (Great Train Express) line in the Seoul metropolitan area. As for overseas projects, POSCO E&C has built railway depots in South America and Southeast Asia. In Poland, it has secured multiple contracts for waste incineration plants. Going forward, the company is preparing to expand its business into new areas, e.g., underground transportation infrastructure and recycling projects.

[Construction Business]

POSCO E&C has led the development of Songdo International Business District, with a proven track record of successfully constructing landmark high-rise buildings, such as Busan LCT and Yeouido Parc1. The company also holds the industry record for the highest number of contracts in urban renewal and remodeling projects, i.e., redevelopment and reconstruction. Going forward, POSCO E&C plans to further diversify its portfolio to include the senior residence building projects.

B. Infrastructure [Logistics and associated businesses]

There are 13 subsidiaries of logistics and associated business segment including POSCO Flow and POSCO DX.

∎ POSCO DX

POSCO DX has both IT and operation automation technology (OT) capabilities. By converging IT and OT, the company has acquired prominence in applying this technology to manufacturing. Leveraging its proprietary AI-based platform, PosFrame, POSCO DX rolled out the Smart Factory technologies at POSCO’s steelworks and has since expanded its application into rechargeable battery material production processes as well as food & beverage manufacturing. As a result, POSCO DX is now known as a specialized provider of Smart Factory solutions. More recently, the company has been integrating AI and robotics to kick Smart Factory operations into next gear and to build the Intelligent Factory.

In addition, based on its capabilities in building fulfillment logistics systems and hubs, POSCO DX delivered projects such as POSCO’s logistics facilities, Incheon Airport’s Baggage Handling System (BHS), and Hanjin Express’s Mega Hub logistics center.

C. Rechargeable Battery Materials

Rechargeable Battery Materials segment includes businesses related to electric vehicle (EV) battery materials, such as lithium, nickel, cathode material, anode material, and recycling. There are a total of 17 subsidiaries, including POSCO Future M and POSCO Argentina.

∎ POSCO Future M

[Basic Industrial Materials]

Refractory production: Refractories maintain their chemical properties and strength even at high temperatures, making them indispensable in industrial facilities, including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO Future M produces refractories and installs them in blast furnaces and various plants. Recognized for its expertise in refractory installation, the company is expanding its business to plants in other fields both domestically and internationally. However, there are challenges due to overproduction by refractory companies worldwide and the flood of Chinese low-cost products entering the market. Therefore, POSCO Future M is striving to secure competitiveness in the global market by achieving maximum cost competitiveness and developing high value-added products.

Lime business: The quicklime market is dominated by POSCO and Hyundai Steel, which together account for over 90% of the total quicklime used for steelmaking. POSCO Future M is the largest supplier to POSCO.

[Energy Materials]

In order to leap forward as an energy materials company, POSCO Future M acquired the anode materials division of LS Mtron in August 2010 and merged with the cathode materials company POSCO ESM in April 2019. POSCO Future M produces both anode active materials (anode materials) and cathode active materials (cathode materials), which are high-value-added materials in the rechargeable battery value chain.

As an integral part of POSCO Group, POSCO Future M has established a full battery materials value chain, ranging from raw to active battery materials and battery recycling. It is the only company to produce graphite-based anode materials, a critical mineral predominated by China. Therefore, the company expects sales to increase in the future by supplying global automakers and battery makers that seek to decouple from China.

However, if POSCO Group’s production of raw materials, such as lithium, nickel, and graphite, declines or is delayed against the plan or if we are unable to meet the stricter Rules of Origin guidelines, we may not be able to reap all of the projected benefits.

D. Others

In Others segment, there are 16 subsidiaries in total, including POSCO HOLDINGS. POSCO HOLDINGS focuses on investing in new growth businesses and opportunities.

3. Key Products

A. Sales of Key Products (2025.1H)

(Unit: KRW hundred million, %)


Business Segment	Item / Business Sector	Specific Use	Total Sales		Ratio
Steel	Hot-rolled Product (HR)	Steel pipe, Shipbuilding, etc.		62,950	21.1%
	Cold-rolled Product (CR)	Automobile, Home appliances, etc.		97,025	32.5%
	Stainless Steel Products	Tableware, pipes, etc.		49,995	16.8%
	Others	Plates, Wire rods, etc.		88,429	29.6%
	Gross Sum			298,399	100.0%
	Deduction of Internal Trade			-111,446

	Sub Total			186,953

Infrastructure	Trading	Steel, Metal		159,811	59.5%
		Chemical, Strategic Item, Energy		32,332	12.1%
		Others		18,159	6.8%
	Construction	Architecture (Domestic)		21,401	8.0%
		Plant (Domestic)		7,844	2.9%
		Civil Engineering (Domestic)		3,472	1.3%
		Others (Domestic)		938	0.3%
		Overseas Construction		2,449	0.9%
		Owned Construction		710	0.3%
		Others		1,546	0.6%
	Logistics and etc.	Others		19,513	7.3%
	Gross Sum			268,175	100.00%
	Deduction of Internal Trade			-116,478

	Sub Total			151,697

Rechargeable	Gross Sum			16,935	100.00%
Battery	Deduction of Internal Trade			- 6,013

Materials	Sub Total			10,922

Others	Gross Sum			8,680	100.00%
	Deduction of Internal Trade			-8,329

	Sub Total			352

Total Sum				349,924

*	‘Energy Materials’ segment was renamed as Rechargeable Battery Materials’ by management decision in June 2025.

B. Price Movement Trends of Key Products

(Unit: KRW thousand/ Ton, KRW/kWh)


Business Segment	Products	2025. 1H		2024		2023
Steel	Hot-rolled Product (HR)		870		910		967
Steel	Cold-rolled Product (CR)		1,087		1,144		1,157
Infrastructure (Trading)	Electric Power		153		160		205
Rechargeable Battery Materials	Refractory		999		1,001		991
Rechargeable Battery Materials	Lime		156		142		147

*	Construction and Logistics and associated businesses segments of Infrastructure are omitted because the raw materials fluctuations defy meaningful measurement. In the case of the Rechargeable Battery Materials business, detailed descriptions are omitted to avoid risk of information leakage.

[Steel]

(1) Criteria for Calculation

Subjects for Calculation: Unit sales prices of the standard hot-rolled product and cold-rolled product

Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

- Global trends in tariffs and their geopolitical implications

[Infrastructure (Trading Segment)]

(1) Criteria for Calculation

Subjects for Calculation: Price of electric power

Calculation Method and Unit: Unit price per electric power ÷ Net power volume generated

(2) Factors of Price Changes

Power: Korea Gas Corporation cost, etc.

The cost consists of introduction cost, supply cost, etc., and is affected by crude oil and exchange rates

[Rechargeable Battery Materials]

(1) Criteria for Calculation

Subjects for Calculation: Unit price of refractory and quicklime

Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

Price of refractories: Affected by business condition of the front industry and raw material cost.

Quicklime price: Mainly influenced by utility unit price and raw materials cost.

Raw materials for energy materials: Subject to price fluctuations depending on the international supply of mineral resources.

4. Major Raw Materials

A. Current Status of Major Raw Materials (2025.1H)

(Unit: KRW hundred million)



Business Segment		Type of Purchase	Item	Specific Use	Purchase Amount (Portion, %)		Portion (%)
		Raw Materials	Materials for Iron-making	Iron Ore for Blast Furnaces		73,706		61.2	%
Steel			Sub-materials	Sub-materials for Iron-making, Steelmaking		26,915		22.3	%
			Stainless Steel Materials	Key Materials for STS Production		19,849		16.5	%
Infrastructure	Trading	Raw Materials	LNG	Material for Power Generation		7,224		100.0	%
	Construction	Raw Materials	Ready-mixed Concrete	Construction of Structure		1,339		22.3	%
			Steel Reinforcement	Strengthening Concrete		1,011		16.8	%
			Cable	Electricity Transfer		77		1.3	%
			Steel Pile	Foundation of Structure		—		0.0	%
			Others	Construction of Pipe and Structure etc.		3,554		59.6	%
	Logistics and etc.	Raw Materials	Others	For other use		3,301		100.0	%
Rechargeable Battery Materials		Raw Materials	NCM and etc.	Production of cathode materials		7,090		83.6	%
			Graphite and etc.	Production of anode materials		325		3.8	%
			Limestone and etc.	Production of Lime		564		6.7	%
			Others	Production of refractory		502		5.9	%

*	Amount: CIF + customs duties + stevedoring fees + other incidental expenses

B. Price Movement Trends of Major Raw Materials

(Unit: KRW thousand)


Business Segment		Category	2025.1H	2024	2023
Steel		Iron Ore(per ton)	132	135	145
		Coal(per ton)	263	329	387
		Scrap Iron(per ton)	485	505	526
		Nickel(per ton)	21,941	22,934	28,043
Infrastructure	Trading	LNG (per ton)	942	1,428	1,594
	Construction	Ready-mixed Concrete (per m³)	88	90	85
		Steel Pile (per m)	181	181	165
		Steel Reinforcement (per kg)	0.9	0.9	0.9
		Cable (per m)	1.0	1.0	0.9
Rechargeable Battery Materials		Refractory (per ton)	649	443	334
Rechargeable Battery Materials		Limestone (per ton)	25	25	24

*	Infrastructure (Logistics and associated businesses) and Others segments are omitted because the raw materials fluctuations defying meaningful measurement. In Rechargeable Battery Materials business, detailed descriptions are omitted to avoid risk of information leakage.

[Steel]

(1) Iron Ore: In Q2 2025, iron ore prices fell by 7% quarter-on-quarter to U$89/ton, reflecting dampened demand on intensifying macro-economic uncertainty impacted by escalating U.S.-China trade tensions. At the same time, supply increased for Australian mining companies ahead of the fiscal year-end (June 2025).


						(Unit: US Dollars/Ton)
’25.Q2	’25.Q1	’24.Q4	’24.Q3	’24.Q2	’24.Q1	’23.Q4	’23.Q3	’23.Q2	’23.Q1
89	96	94	89	101	113	117	106	102	118

(2) Coal: In Q2 2025, despite increased inventory stocking demand ahead of the monsoon season in India, the supply-demand balance eased on growing supply of coal from Canada and Australia ahead of the fiscal year-end, resulting in a 1% quarter-on-quarter price decline to U$184/ton.


						(Unit: US Dollars/Ton)
’25.Q2	’25.Q1	’24.Q4	’24.Q3	’24.Q2	’24.Q1	’23.Q4	’23.Q3	’23.Q2	’23.Q1
184	185	203	211	242	308	334	264	243	344

(3) Scrap: In Q2 2025, U.S. moves to impose tariffs weakened product demand; in turn, demand for steel scrap fell, resulting in a 1% quarter-on-quarter price decline to U$337/ton.


						(Unit: US Dollars/Ton)
’25.Q2	’25.Q1	’24.Q4	’24.Q3	’24.Q2	’24.Q1	’23.Q4	’23.Q3	’23.Q2	’23.Q1
337	342	350	364	376	392	385	385	403	438

(4) Nickel: In Q2 2025, continued uncertainty over U.S. tariffs, coupled with concerns over a global economic slowdown and weakening demand from China, resulted in a 3% quarter-on-quarter price decline to U$15,171/ton.


					(Unit: U$/lb, U$/Ton)
’25.Q2	’25.Q1	’24.Q4	’24.Q3	’24.Q2	’24.Q1	’23.Q4	’23.Q3	’23.Q2	’23.Q1
6.88	7.06	7.27	7.37	8.35	7.53	7.83	9.23	10.12	11.79
15,171	15,571	16,038	16,259	18,415	16,589	17,247	20,344	22,308	25,983

*	LME: London Metal Exchange

[Infrastructure]

(1) Criteria for Calculation


Business Sector	Products	Criteria for Calculation	Factors of Price Changes
Trading	LNG	Average purchase price and LNG direct purchase price of Korea Gas Corporation	Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected by crude oil, exchange rate, etc.)
Construction	Ready-mixed Concrete	Standard 25-210-15	The negotiation price in the metropolitan area (effective from March 1, 2025)
	Steel Pile	SPIRAL,609.6,12T,STP275,KS F 4602,STEEL PILE	No purchase record for 2025 (Q4 2024 price applied)
	Steel Reinforcement	SD400 10mm	Increase the price of raw materials (scrap)
	Cable	TFR-3, 0.6/1KV, 2.5SQ, 2C	Increase the price of raw materials (electric copper)

[Rechargeable Battery Materials]

(1) Criteria for Calculation

- Unit Price based on receipt amount

(2) Factors of Price Changes

a) Refractory raw materials: Price fluctuations and compositional costs of raw materials in China

b) Limestone: Raw material price fluctuation is not extreme and it varies slightly depending on the freight cost

c) Energy materials: Price trends are not disclosed considering concerns about information leakage

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Unit: Thousand Ton)

Business Area

Products

2025.1H

2024

2023

Steel

Crude Steel

19,741

40,461

40,680

∎ POSCO STEELEON


			(Unit: Thousand Ton)
Business Area	Products	Place of Business	2025.1H		2024		2023
Steel	Galvanized / Color- coated Steel	Pohang		496		960		960
	Galvanized / Color- coated Steel	Myanmar		34		70		70

Total				530		1,030		1,030

∎ POSCO M-TECH

(Ton)

Business Area

Products

2025.1H

2024

2023

Raw materials for steel production

Deoxidizer

21,358

39,058

39,294

[Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

(MW)

Business Area

Products

Place of
Business

2025.1H

2024

2023

Power Generation

Electric Power

Incheon

3,412

[Rechargeable Battery Materials]

∎ POSCO FUTURE M


							(Ton)
Business Area	Products	Place of Business	2025.1H		2024		2023
Refractory	Brick and etc.	Pohang		57,801		116,560		116,560
LIME	Quicklime	Pohang		543,000		1,095,000		1,095,000
LIME	Quicklime	Gwangyang		543,000		1,095,000		1,095,000

Total				1,143,801		2,306,560		2,306,560

*	In the case of the rechargeable battery materials sector, detailed notation is omitted in consideration of technology and information leakage concerns.

*	As the Hwaseong Plant is operated under a simple consignment arrangement for POSCO facilities, the information is omitted.

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production


		(Unit: Thousand Ton)
Products		2025.1H		2024		2023
Crude Steel			19,078		39,281		39,941
Products	Hot-Rolled Steel		5,389		10,172		10,660
	Plate		3,115		6,636		6,602
	Wire Rod		843		2,131		2,325
	Pickled-Oiled Steel		1,422		2,713		2,780
	Cold-Rolled Products		3,753		7,498		7,133
	Coated Steel		3,555		7,543		7,299
	Electrical Steel		535		998		828
	Stainless Steel		1,553		3,333		3,104
	Others		720		1,698		1,795

	Total		20,882		42,720		42,528

*	The amount of products is the aggregate amount of POSCO’s production and production of POSCO’s subsidiaries, which may include interested parties’ transactions.

(2) Capacity Utilization Rate (2025.1H)


				(Unit: Thousand Ton, %)


	Company	Capacity		Production		Utilization Rate
Crude Steel Production	POSCO		19,741		17,024		86.2	%
	PT. Krakatau POSCO		1,465		1,458		99.5	%
	POSCO (Zhangjiagang) Stainless Steel Co., Ltd.		550		357		65.0	%
	POSCO Yamato Vina Steel Joint Stock Company		275		239		86.9	%

	Total		22,031		19,078		86.6	%

[Infrastructure (Trading)]

Due to the nature of the business, it is difficult to measure production performance and operating rates for Infrastructure (Construction), and Infrastructure (Logistics and associated business) segments, therefore, the information is omitted in this part.

∎ POSCO INTERNATIONAL

(1) Production Result

(Unit: GWh)

Business Area

Products

Place of
Business

2025.1H

2024

2023

Power Generation

Electric Power

Incheon

5,222

12,193

11,213

(2) Capacity Utilization Rate (2025.1H)

(Unit: Hour, %)

Business Area

Production Base

Capacity

Production

Utilization Rate

Power Generation

Incheon Power Plant

4,344

2,455

56.52

[Rechargeable Battery Materials]

∎ POSCO FUTURE M

(1) Production Result


							(Unit: Ton)
Business Area	Products	Place of Business	2025.1H		2024		2023
Refractory	Brick and etc.	Pohang		42,300		80,191		77,437
LIME	Quicklime	Pohang		533,385		1,055,911		1,110,594
LIME	Quicklime	Gwangyang		605,272		1,216,072		1,243,040

Total				1,180,957		2,352,174		2,431,071

*	In the case of the rechargeable battery materials sector, detailed notation is omitted in consideration of technology and information leakage concerns.

*	As the Hwaseong Plant is operated under a simple consignment arrangement for POSCO facilities, the information is omitted.

(2) Capacity Utilization Rate (2025.1H)


					(Unit: Ton, %)
Business Area	Capacity		Production		Utilization Rate
Refractory Factory		57,801		42,300		73	%
Quicklime Factory (Pohang)		543,000		533,385		98	%
Quicklime Factory (Gwangyang)		543,000		605,272		111	%

Total		1,143,801		1,180,957		—

In the case of the rechargeable battery materials sector, detailed notation is omitted in consideration of technology and information leakage concerns.

As the Hwaseong Plant is operated under a simple consignment arrangement for POSCO facilities, the information is omitted.

C. Production Facilities

(1) The current status of production facilities (2025.1H)


[Land]								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			1,957,023		18,352		-34,652		—		1,940,723
Infrastructure	Trading		514,978		50,487		-1,225		-1,476		562,764
	Construction		348,243		101		-61		—		348,283
	Logistics and etc.		111,653		269		-50,785		—		61,137
Rechargeable Battery Materials			217,586		29,753		1		—		247,340
Others			186,392		2,003		-1		—		188,394


[Buildings]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			3,002,051		488,015		-30,543		-148,877		3,310,646
Infrastructure	Trading		574,270		10,018		-43,754		-11,381		529,153
	Construction		85,969		844		1		-2,745		84,069
	Logistics and etc.		104,483		2,587		-5,628		-1,376		100,066
Rechargeable Battery Materials			1,397,132		27,498		-28,228		-30,385		1,366,017
Others			117,064		2,313		-13,235		-202		105,940


[Structures]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,796,242		129,198		-27,045		-132,176		2,766,219
Infrastructure	Trading		601,835		253,606		-103,038		-19,585		732,818
	Construction		47,043		4		-297		-3,513		43,237
	Logistics and etc.		88,603		3,120		-4,773		-3,137		83,813
Rechargeable Battery Materials			312,117		4,939		-18,438		-6,454		292,164
Others			14,684		204		-454		-105		14,329


[Machinery]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			14,544,015		1,129,981		-84,327		-1,199,917		14,389,752
Infrastructure	Trading		1,163,227		116,662		-108,156		-67,916		1,103,817
	Construction		6,921		237		-288		-848		6,022
	Logistics and etc.		239,947		675		-23,140		-1,544		215,938
Rechargeable Battery Materials			2,336,689		210,457		-10,030		-102,839		2,434,277
Others			20,878		1,020		-15,919		-2,242		3,737


[Vehicles]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			56,789		12,058		-5,598		-15,418		47,831
Infrastructure	Trading		12,534		10,326		-8,991		-1,373		12,496
	Construction		5,655		666		-525		-970		4,826
	Logistics and etc.		989		1,392		-1,424		-116		841
Rechargeable Battery Materials			13,963		1,243		-764		-2,169		12,273
Others			45		—		-97		89		37

[Tools and Fixtures]


								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			67,073		13,314		-8,938		-13,291		58,158
Infrastructure	Trading		22,310		4,403		-2,256		-5,601		18,856
	Construction		1,432		1,044		-531		-324		1,621
	Logistics and etc.		6,328		210		-34		-1,084		5,420
Rechargeable Battery Materials			37,326		10,542		-10,522		-6,683		30,663
Others			32		—		-1,363		37		-1,294

[Equipment]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			100,089		57,644		-3,696		-29,024		125,013
Infrastructure	Trading		24,966		4,417		-2,653		-4,571		22,159
	Construction		8,457		2,104		-1,587		-1,862		7,112
	Logistics and etc.		12,137		1,579		-1,002		1,138		13,852
Rechargeable Battery Materials			40,920		5,159		-3,359		-4,350		38,370
Others			13,464		2,128		-996		-780		13,816

[Financial Lease Assets]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			184,109		33,261		-36,471		-20,098		160,801
Infrastructure	Trading		375,702		472,092		-88,664		-28,662		730,468
	Construction		29,826		107,221		-58,955		-18,359		59,733
	Logistics and etc.		258,550		625		-11,517		-4,072		243,586
Rechargeable Battery Materials			102,998		7,174		-340		-11,117		98,715
Others			19,448		890		-4,419		-2,182		13,737

[Biological Assets]

								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			—		—		—		—		—
Infrastructure	Trading		139,451		—		-11,211		-4,848		123,392
	Construction		—		—		—		—		—
	Logistics and etc.		—		—		—		—		—
Rechargeable Battery Materials			—		—		—		—		—
Others			—		—		—		—		—

[Assets under Construction]



								(Unit: KRW million)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,250,595		1,228,528		-1,974,000		31,606		1,536,729
Infrastructure	Trading		573,964		682,388		-276,107		-31,606		948,639
	Construction		11,373		1,116		-3,699		—		8,790
	Logistics and etc.		363,080		12,656		-339,865		—		35,871
Rechargeable Battery Materials			4,031,453		1,211,451		-697,925		—		4,544,979
Others			292,725		118,788		-672		—		410,841

(2) New Facility Establishment, Purchase, Etc. (2025.1H)

- Investments under Construction

The total duration and investment amount of individual projects with investments in excess of KRW 100 billion have been aggregated on a simple sum basis.

[Steel]

(Unit: KRW hundred million)

Date

Project

Total
Investment

Invested
Amount

Amount
to be
Invested

Expansion/ Establishment

October 2020 ~ September 2029

Construction of a new electric arc furnace at the Gwangyang Works, etc.

45,048

10,906

34,142

[Infrastructure]

(Unit: KRW hundred million)

Date

Project

Total
Investment

Invested
Amount

Amount
to be
Invested

Expansion/ Establishment

June 2023 ~ May 2027

Gwangyang LNG terminal, etc.

9,935

4,922

5,013

[Rechargeable Battery Materials]

(Unit: KRW hundred million)

Date

Project

Total
Investment

Invested
Amount

Amount
to be
Invested

Expansion/ Establishment

March 2020 ~ May 2027

Cathode/Anode material factory, lithium commercialization plant, etc.

85,670

57,883

23,826

6. Product Sales

[Steel]


		(Unit: KRW hundred million)
Items		2025.1H		2024		2023
Domestic	Hot-Rolled Products		26,841		52,703		58,730
	Cold-Rolled Products		23,518		51,263		52,754
	Stainless Steel		14,737		29,493		30,313
	Others		44,912		95,180		106,558
Overseas	Hot-Rolled Products		36,109		72,818		75,979
	Cold-Rolled Products		73,507		152,461		142,160
	Stainless Steel		35,258		75,395		76,521
	Others		43,517		92,696		92,373
Total	Gross Sum		298,399		622,009		635,387
	Internal Transaction		-111,446		-230,968		-231,454

	Total		186,953		391,041		403,933

[Infrastructure]


			(Unit: KRW hundred million)
Business Area	Items		2025.1H		2024		2023
Trading	Domestic Trading	Merchandise		20,950		45,670		54,327
		Product		14,170		32,545		39,121
		Others		452		1,412		1,366
	Overseas Trading	Merchandise		58,343		118,643		121,136
		Product		788		3,881		3,375
		Others		46		144		48
	Trades among the 3 countries			115,790		226,736		210,065
Construction	Domestic Construction	Building		21,401		49,469		41,251
		Plant		7,844		21,275		23,371
		Civil Engineering		3,472		10,210		11,658
		Others		938		2,724		2,096
	Overseas			2,449		8,719		14,975
	Own Construction			2,256		5,899		9,325
Logistics and etc.	Others			19,276		41,393		42,014
Total	Gross Sum			268,175		568,720		571,572
	Deduction of Internal Transaction			-116,478		-261,735		-243,520

	Total			151,697		306,985		328,052

[Rechargeable Battery Materials]


	(Unit: KRW hundred million)
Items	2025.1H		2024		2023
Gross Sum		16,935		38,299		48,219
Deduction of Internal Transaction		-6,013		-10,174		-10,059

Total		10,922		28,125		38,160

[Others]


	(Unit: KRW hundred million)
Items	2025.1H		2024		2023
Gross Sum		8,680		21,112		15,622
Deduction of Internal Transaction		-8,329		-20,381		-14,495

Total		352		730		1,127

* Domestic and overseas categorized by the sales area.

* Sales of POSCO International’s foreign branches are included in ‘trade among the 3 countries’ under Infrastructure (Trading) Segment.

7. Derivatives

POSCO HOLDINGS has agreed to currency swap contracts to hedge against exchange rate risks on foreign currency borrowings. As of June 30, 2025, the Company had currency swap contracts of USD 400 million (due to mature in May 2030) and USD 300 million (due to mature in May 2035), which were measured at fair value. The valuation loss on these currency swaps, as reflected in the Company’s financial statements as of June 30, 2025, amounted to KRW 36,216 million.

POSCO uses currency swap contracts to hedge against the exchange rate risk on foreign currency loans. The loss on valuation of currency swaps, as reflected in POSCO’s financial statements as of June 30, 2025, amounted to KRW 253,006 million; additionally, associated transaction loss amounted to KRW 3,043 million.

POSCO also hedges against exchange rate risk on expected sales revenue and foreign currency borrowings through currency forward products. The gain on valuation of derivatives, as reflected in POSCO’s financial statements as of June 30, 2025, amounted to KRW 97,682 million, while the associated transaction gains amounted to KRW 534 million.

8. Significant Contracts

[Price Movement Trend of Major Raw Materials]

(1) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2024)

a) Contract Counterparty: POSCO

b) Transaction amount: KRW 0.6588 trillion

c) Purpose: In order to improve the management efficiency of the steel business as a following step of the vertical spin-off on March 2022.

d) Contract period: December 2024

e) Payment method: Cash payment

f) Company subject to transfer: POSCO Maharashtra Steel Private Limited, POSCO India Processing Center Private Limited, POSCO India Pune Processing Center Private Limited, POSCO ASSAN TST STEEL INDUSTRY Inc

(2) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2023)

a) Contract Counterparty: POSCO

b) Transaction amount: KRW 1.1320 trillion

c) Purpose: In order to improve the management efficiency of the steel business as a following step of the vertical spin-off on March 2022.

d) Contract period: August 18, 2023 ~ September 25, 2023

e) Payment method: Cash payment

f) Company subject to transfer: PT.KP, P-Mexico, P-IJPC, P-MVWPC (4 overseas companies)

* The above contract amount is the amount applied to the exchange rate based on July 31, 2023, and overseas assets are traded by applying the exchange rate on the day of the transaction.

(3) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2022)

a) Contract Counterparty: POSCO

b) Transaction amount: KRW 1.1377 trillion

c) Purpose: In order to improve the management efficiency of the steel business as a following step of the vertical spin-off on March 2022.

d) Contract period: November 18, 2022 ~ March 31, 2023

e) Payment method: Cash payment

f) Company subject to transfer: POSCO YAMATO VINA STEEL JOINT STOCK COMPANY, POSCO Thainox Public Company Limited, POSCO COATED STEEL (THAILAND) CO., and etc. (32 domestic companies, 25 overseas companies)

* The above contract amount is the amount applied to the exchange rate based on November 3, 2022, and overseas assets are traded by applying the exchange rate on the day of the transaction.

(4) Sales contract of CSP shares

a) Contract Counterparty: ArcelorMittal Brazil

b) Purpose: Improving asset efficiency through the sales of non-core assets with no management right

c) Contract period: July 28, 2022 (transaction completed on March 10, 2023)

d) Transaction amount and payment method: ArcelorMittal Brazil acquired shares in shareholder companies free of charge on the condition that ArcelorMittal Brazil succeed CSP’s debts. In addition, the shareholder companies will additionally pay US$102 million.

* POSCO HOLDNGS paid US$20.4 million equivalent to a 20 percent stake

[Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

Contract

Date

Remarks

Investment on the 3^rd stage development of

A-1 / A-3 block

in Myanmar gas field

September

2020

1) Investment amount: KRW 365,786,302,000

2) Development period: September 1, 2019 ~ December 31, 2024

3) Schedule : Installation Completion of low-pressure gas compression platform and
commenced operation in 2024

4) Other Information

- Location: North-west offshore, Myanmar

- This investment is the 3^rd stage of development, which consists of 3 stages in Myanmar gas field development. The purpose of investment is to maintain current gas production level stably by installing low-pressure gas compression platform.

- In the first quarter of 2021, the design and production of the equipment for this work was started, and it is planned to start operation in 2024. The “ (2) Development period” above is the period including the basic design progress period, September 2019 to September 2020.

- Participation rate of each company in gas production and offshore pipeline transportation business

• POSCO International Corporation : 51.0%

• ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0%

• MOGE(Myanmar Oil and Gas Enterprise): 15.0%

• GAIL (India) Limited : 8.5%

• KOGAS(Korea Gas Corporation): 8.5%

- Investment size of USD 315,170 thousand, applying the exchange rate of 1USD=1,160.60 KRW, which is the date of the BOD resolution.

- Detailed information and future timeline on this resource development investment is subject to change.

LOGO POSCO International disclosure date : September 22, 2020 (Decision on natural resources investment)

Investment on the 4^th stage development of

A-1 / A-3 block

in Myanmar gas field

June

2024

1) Investment amount: KRW 926,302,200,195

2) Development period: July 1, 2024 ~ June 30, 2027

3) Future Plan : POSCO International plans to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.

4) Other Information

- Location: North-west offshore, Myanmar

- This investment is the 4^th stage of development of the existing Myanmar gas field development. The purpose of investment is to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field and to install processing facilities on subsea pipelines and existing platform.

- With its commencement of development in July 2024, the gas production expected to begin in the third quarter of 2027.

- Participation rate of each company in gas production and offshore pipeline transportation business

• POSCO International Corporation: 51.0%

• KOGAS (Korea Gas Corporation): 8.5%

• ONGC VIDESH (Oil and Natural Gas Corporation Videsh Limited) : 17.0%

• MOGE (Myanmar Oil and Gas Enterprise): 15.0%

• GAIL (India) Limited: 8.5%

- Investment size of USD 667 million, applying the exchange rate of June 25, 2024 (1USD=1,387.50 KRW).

- Detailed information and future timeline on this resource development investment is subject to change.

LOGO POSCO International disclosure date: June 27, 2024 (Decision on natural resources investment)

Decision to acquire shares of Senex Energy (Australia)

December 2021

1) Purpose: Production and Development of land gas field in eastern Australia

2) Method: Cash acquisition

3) Resolution date of Board of Directors: December 10, 2021

4) Acquisition amount: KRW 371,077,996,186

5) Number of shares acquired: 96,178,946 Shares

6) Date of acquisition: April 1, 2022

7) Equity structure (after acquisition of shares):

- POSCO International: 50.1%

- Hancock Energy (Australia): 49.9%

LOGO POSCO International disclosure date: March 31, 2022 (Decision on Acquisition of Shares or Investment Certificates of Other Corporations)

Decision on Merger of

POSCO Energy

August

2022

1) Purpose: The purpose of the merger is to consolidate the energy business within the group and complete the value chain of the LNG business, thereby strengthening competitiveness, improving management efficiency and laying the foundation for sustainable growth.

2) Method of Merger: POSCO Energy Co., Ltd. (“POSCO Energy”) will be merged with and into POSCO International Co., Ltd. (“POSCO International”).

3) Date of board resolution (decision Date): August 12, 2022

4) Date of General Shareholders Meeting for merger approval: November 4, 2022

5) Merger ratio: POSCO International: POSCO Energy = 1 : 1.1626920

6) Record date of merger: January 1, 2023

7) Scheduled date of merger registration: January 2, 2023

LOGO POSCO International disclosure date: January 2, 2023

[Infrastructure (Logistics and associated businesses)]

∎ POSCO FLOW

Contract

Date

Remarks

Transfer of all logistics tasks such as arranging logistics and performing related services

December 2021

1) Contract counterpart: POSCO (POSCO HOLDINGS INC.)

2) Signed date: December 22, 2021

3) Date of Transfer: January 1, 2022

4) Transfer amount: KRW 2,945 million

5) Information: Transfer of all logistics tasks such as arranging logistics and performing related services

9. Research and Development

A. Research and Development (“R&D”) Organization (2025.1H)


Business Segment	Company	Organization
Steel	POSCO	Technology Strategy Office
		Technical Research Laboratories
		Technical Research Laboratories Steel Product R&D Center
		Technical Research Laboratories Steel Manufacturing Process R&D Center
		Technical Research Laboratories Low Carbon Iron and Steel Making R&D Center
		Technical Research Laboratories Automotive Steel R&D Center
		Technical Research Laboratories Steel Solution R&D Center
	POSCO (Zhangjiagang) Stainless Steel Co., Ltd.	R&D Center
	POSCO STEELEON	Process & Quality Development Department
	POSCO M-TECH	Automation R&D Center
	POSCO M-TECH	Pohang Steel Business Office
Infrastructure	POSCO MOBILITY SOLUTION	STS Division Production Group
		Core Division Tool & Die R&D Group
		Core Division Development Group
	POSCO Eco & Challenge	Research & Development Center
	POSCO A&C	Architecture Design Business Office
	POSCO DX	Technology Research Laboratory
Rechargeable Battery Materials	POSCO Future M	Technical Research Laboratories
Others	POSCO HOLDINGS INC.	POSCO Group Technology Strategy Office
		AI & Robotics Convergence R&D Laboratories
		Energy Materials R&D Laboratories
		Hydrogen & Low-Carbon R&D Laboratories
		Australia Critical Minerals R&D Laboratories
		POSCO N.EX.T Hub

B. R&D Expenses (2025.1H)


																(Unit KRW million)
Category	Business Segment
	Steel			Infrastructure									Rechargeable Battery Materials			Others			Total
	Steel			Trading			Construction			Logistics and etc.			Rechargeable Battery Materials			Others			Total
Selling and Administrative Cost		9,354			1,277			2,151			4,894			17,323			60,324			95,322
Manufacturing Cost		156,519			77			50			—			18			—			156,664
R&D Cost (Intangible Assets)		12,592			—			615			972			6,775			2,804			23,758
Total*		178,465			1,354			2,816			5,866			24,116			63,128			275,744
Government Subsidy		—			—			1,157			—			—			—			1,157
R&D/Sales Ratio (%)		0.95	%		0.01	%		0.10	%		4.29	%		2.21	%		179.43	%		0.79	%

*	Total includes government subsidy.

III. Financial Statements

1. Consolidated Financial Statements

A. Summary


					(Unit: KRW million)
Account	2025.1H		2024		2023
	As of June 30, 2025		As of December 31, 2024		As of December 31, 2023
[Total current assets]		43,657,671		44,029,923		46,212,299
Cash and cash equivalents		7,002,287		6,767,898		6,670,879
Other receivables, net		2,092,894		2,261,323		1,947,529
Other short-term financial assets		9,768,854		8,499,389		11,403,166
Trade accounts and notes receivable, net		11,095,199		10,821,619		11,015,303
Inventories		12,337,893		14,143,500		13,825,514
Other current assets		1,360,544		1,536,194		1,349,908
[Total non-current assets]		57,497,149		59,374,276		54,733,095
Other receivables, net		1,476,506		1,306,329		1,452,445
Other long-term financial assets		2,258,240		2,571,651		2,708,325
Investments in associates and joint ventures		4,592,319		4,738,793		5,020,264
Property, plant and equipment, net		40,258,987		39,846,828		35,206,248
Intangible assets, net		4,746,148		4,774,824		4,714,784
Other non-current assets		4,164,949		6,135,851		5,631,029
Total assets		101,154,820		103,404,199		100,945,394
[Total current liabilities]		22,223,768		22,779,719		21,861,518
[Total non-current liabilities]		18,341,151		19,174,112		19,419,979
Total liabilities		40,564,919		41,953,831		41,281,497
[Equity attributable to owners of the controlling company]		54,666,626		55,394,231		54,180,849


Share capital		482,403		482,403		482,403
Capital surplus		1,605,505		1,648,894		1,663,334
Hybrid bonds		—		—		—
Retained earnings		53,365,810		53,658,368		53,857,514
Other equity attributable to owners of the controlling company		-787,092		-395,434		-1,822,402
[Non-controlling Interests]		5,923,275		6,056,137		5,483,048
Total equity		60,589,901		61,450,368		59,663,897

	From January 1, 2025 to June 30, 2025		From January 1, 2024 to December 31, 2024		From January 1, 2023 to December 31, 2023
Revenue		34,992,363		72,688,143		77,127,197
Operating profit		1,175,613		2,173,573		3,531,423
Profit		428,081		947,580		1,845,850
[Profit attributable to owners of the controlling company]		462,161		1,094,917		1,698,092
[Profit attributable to non-controlling interests]		-34,080		-147,337		147,758
Total comprehensive income		-499,465		2,110,358		2,330,891
[Total comprehensive income attributable to owners of the controlling company]		-298,224		2,008,919		2,131,737
[Total comprehensive income attributable to non-controlling interests]		-201,241		101,439		199,154
Earnings per share (KRW)		6,112		14,451		22,382
Number of Consolidated Companies		194		194		192

B. The Standards Used for Reporting the Financial Statements

The Company prepared its financial statements in accordance with the Korean-International Financial Reporting Standards (the “K-IFRS”) and applied it to each Company’s final financial statements.

2. Separate Financial Statements

A. Summary


					(Unit: KRW million)
Account	2025.1H		2024		2023
	As of June 30, 2025		As of December 31, 2024		As of December 31, 2023
[Total current assets]		4,819,740		3,793,469		4,657,899
Cash and Cash equivalents		523,188		409,387		376,914
Trade accounts and notes receivable, net		156,608		178,822		238,332
Other receivables, net		271,274		21,388		68,821
Other short-term financial assets		3,463,408		2,686,420		3,940,743
Inventories		402,860		467,796		—
Other current assets		2,402		29,655		33,089
[Total non-current assets]		47,247,941		46,840,329		46,988,299
Other receivables, net		19,715		14,894		6,955
Other long-term financial assets		419,329		421,822		1,131,074
Investments in Subsidiaries, associates, and joint ventures		45,915,675		45,631,965		45,321,370
Property, plant and equipment, net		533,840		415,993		197,787
Intangible assets, net		23,154		21,461		19,341
Other non-current assets		336,228		334,194		311,772
Total assets		52,067,681		50,633,797		51,646,198
[Total current liabilities]		409,146		162,831		1,819,670
[Total non-current Liabilities]		3,262,507		2,281,936		2,326,663
Total liabilities		3,671,653		2,444,768		4,146,333
[Share capital]		482,403		482,403		482,403
[Capital surplus]		1,367,990		1,367,990		1,370,557
[Retained earnings]		47,834,320		47,952,144		47,505,885
[Other equity]		-1,288,685		-1,613,507		-1,858,980


Account	2025.1H		2024		2023
Total equity		48,396,028		48,189,030		47,499,865

		From January 1, 2025 to June 31, 2025		From January 1, 2024 to December 31, 2024		From January 1, 2023 to December 31, 2023
Revenue		819,465		1,997,128		1,454,079
Operating profit		616,821		1,596,420		1,106,629
Profit		634,903		1,621,282		799,578
Earnings per share (KRW)		8,396		21,398		10,539

B. The Standards Used for Reporting the Financial Statements

The company prepared its financial statements in accordance with the Korean - International Financial Reporting Standards (the “K-IFRS”).

IV. CORPORATE GOVERNANCE

1. Overview of Corporate Governance

A. Board of Directors

(1) Board of Directors (BoD)

The BoD consists of four inside directors (CHANG, In Hwa/ LEE, Ju Tae/ CHUN, Sung Lae/ KIM, Ki Soo) and six outside directors (KWON, Tae Kyun/ YOO, Young Sook/ YOO, Jin Nyong/ SOHN, Sung Kyu/ KIM, Joon Gi/ PARK, Sung Wook)

The BoD manages six Special Committees:

a) ESG Committee

b) Director Candidate Recommendation Committee

c) Evaluation and Compensation Committee

d) Finance Committee

e) Audit Committee and

f) CEO Candidate Pool Management Committee

(2) Composition of the Special Committees under the BoD and their Functions (as of August 14, 2025)

Category

Composition

Directors

Major Functions

ESG

Committee

3 Outside Directors,

1 Inside Director

YOO, Jin Nyong

(Chairman)

YOO, Young Sook

KIM, Joon Gi

CHUN, Sung Lae

• Agenda

1. Matters related to the operation of the BoD and the special committees

a) Agenda proposals development and establishment of the operating standards of the BoD and the special committees

b) Prior deliberation on revision or repeal of the Operational Regulations of the Board of Directors

c) Prior deliberation of the composition and operation of the BoD’s special committees

2. ESG-related implementation monitoring and report publication

3. Deliberation and resolution of donations in the amount of KRW 100 million to KRW 1 billion and prior deliberation on donations over KRW 1 billion

4. Deliberation and resolution on the following transactions with the largest shareholder of the Company as defined under the Commercial Act and such related party, where the transaction amount is less than KRW 200 billion, and prior deliberation for transactions of KRW 200 billion or more:

a) A single transaction whose amount is equal to or greater than 1/100 of the Company’s total assets or total revenue as of the end of the most recent fiscal year.

b) A transaction where the aggregate transaction amount with a specific counterparty during the relevant fiscal year, including the relevant transaction, is equal to or greater than 5/100 of the Company’s total assets or total revenue as of the end of the most recent fiscal year.

5. Internal transactions under Monopoly Regulation and Fair Trade Act (The act of providing or trading funds, securities, or assets with related party as business counterpart or for related party)

a) Review of internal transaction-related issues and improvement measures

b) Prior deliberation on internal transactions (Amount KRW 200 billion or more)

c) Deliberation and resolution of internal transactions (between KRW 10 billion and KRW 200 billion)

6. Appointment of the Fair Trade Compliance Officer.

• Reported Items

1. Key ESG issues of affiliates

2. Matters concerning the execution of internal transactions (between KRW 5 billion and KRW 10 billion)

Finance Committee

3 Outside Directors;
1 Inside Director

PARK, Sung Wook

(Chairman)

YOO, Jin Nyong

SOHN, Sung Kyu

LEE, Ju Tae

• Agenda

1. Policy development to foster sound internal corporate value and finances

2. Prior deliberation of filings for litigation or arbitration, or
formulation of responses to reconciliation or trial mediation, or any equivalent legal actions in the amount of KRW 100 billion or more

3. Regarding investment activities

a) Prior deliberation on new investments (KRW 100 billion or more. Investment and capital increase includes borrowings and liabilities that the company assumes)

b) Prior deliberation on existing investments (KRW 200 billion or more. Investment and capital increase includes borrowings and liabilities that the company assumes)

c) Approval of new investments (more than KRW 50 billion and less than KRW 100 billion. Investment and capital increase includes borrowings and liabilities that the company assumes)

d) Approval of existing investments (between KRW 100 billion and KRW 200 billion. Investment and capital increase includes borrowings and liabilities that the company assumes)

e) Preliminary deliberation on the acquisition and disposal of tangible and intangible fixed assets and important investment assets (in excess of KRW 200 billion, based on book value per unit of investment assets)

4. Deliberation and resolution on bond issuance and important borrowings (including refinancing borrowings exceeding KRW 100 billion)

5. Prior deliberation on bond issuance and important borrowings (new long-term borrowings exceeding KRW 100 billion)

6. Prior deliberation on the delegation of authority to the CEO for bond issuance exceeding KRW 100 billion, and deliberation of and resolution on the delegation of authority to the CEO for bond issuance of KRW 100 billion or less. (for predetermined amount and type of bonds, and with a maturity period not exceeding one year)

7. Deliberation and resolution on offering non-current assets as collateral

8. Deliberation of and resolution on the assumption of liabilities, including collateral and guarantees, for invested companies for amounts under KRW 200 billion, and prior deliberation for such assumption of KRW 200 billion or more.

Audit Committee

3 Outside Directors

SOHN, Sung Kyu

(Chairman)

KIM, Joon Gi

PARK, Sung Wook

• Agenda

1. Defining the work scope of the committee

2. Matters delegated by the BoD or Representative Directors

3. Request for Extraordinary GMoS

4. Consulting of external experts

5. Audit of the legitimacy of management’s business execution

6. Review of the soundness and validity of the Company’s financial activities and the appropriateness of the financial reporting

7. Review of the validity of important accounting standards or changes in accounting estimates

8. Evaluation of the operation status of the internal accounting management system

9. Evaluation of the internal control system

10. Agreement on appointment or dismissal of the internal audit department representative

11. Contract for appointment, remuneration and non-audit services of independent auditors

12. Evaluation of independent auditors’ audit activities

(3) List of Key Activities of the Board of Directors


^○		January 1, 2025 ~ March 19, 2025


No.	Date	Agenda	Approval
2025-1	February 5	1. Medium to Long-term Management Strategies and 2025 Consolidated Management Plans of the Group 2. Approval of the 57th Financial Statements and schedule for the General Meeting of Shareholders 3. Funding plans for FY 2025 4. Amendment of Internal Control over Financial Reporting (ICFR) Regulations 5. Improvement of the Company’s performance evaluation system and executive compensation system • Reported Items - 2024 Group’s business performance - Operational status of the 2024 ICFR in 2024 - Evaluation of the 2024 operation of the ICFR	Approved Approved Approved Approved After Amendment Approved After Amendment — — —
2025-2	February 19	1. Recommendation of Inside Directors candidates 2. Partial amendments to the Articles of Incorporation	Approved Approved
		3. Agenda items for the 57th General Meeting of Shareholders 4. Cancellation of treasury shares and the treasury shares report • Reported Item - Items reported at the 1st ESG Committee meeting	After Amendment Approved Approved —


^○		March 20, 2025 ~ June 30, 2025


No.	Date	Agenda	Approval
2025-3	March 20	1. Appointment of the Chair of the Board 2. Appointment of the Representative Director & CEO 3. Appointment of members to the special committees	Approved Approved Approved
2025-4	May 13	1. Dividend payment in Q1 2025 2. Approval (ex post facto) of restoration fund donation made to wildfire damage in the Yeongnam region 3. Plan to extend payment guarantee for NMC borrowings 4. Participation in capital increase of POSCO Future M 5. Participation in capital increase of POSCO Pilbara Lithium Solution 6. Participation in capital increase of POSCO GS Eco-Materials 7. Amendment to the Board of Directors’ Operating Regulations • Reported Items - Business performance of the Group in Q1 2025 - Board activity performance and assessment results in 2024	Approved Approved Approved Approved Approved Approved Approved — —

* At the 57th General Meeting of Shareholders, convened on March 20, 2025, Inside Directors JEONG, Ki Seop and KIM, Jun Hyung retired on term expiration. New Inside Directors LEE, Ju Tae and CHUN, Sung Lae were elected and Inside Director KIM, Ki Soo was re-elected.


^○		July 1, 2025 ~ August 14, 2025


No.	Date	Agenda	Approval
2025-5	July 3	1. Sale of equity stakes in Zhangjiagang and Qingdao	Approved
2025-6	August 6	• Reported Item - POSCO Group’s Plan for Safety Management Innovation	—
2025-7	August 12	1. Dividend payment in Q2 2025 2. Approval (ex post facto) of restoration fund donation made for damages caused by heavy rainfall nationwide • Reported Items 1. Progress update on 2025 Board resolutions	Approved Approved —
		2. Group business performance in Q2 2025 3. Progress update on integrated steel mill project in India	— —

(4) Key Activities of Outside Directors


^○		January 1, 2025 ~ August 14, 2025


No.	Date	Outside Directors Attendance (Total Outside Directors)	Remarks
2025-1	February 5	6 (6)	—
2025-2	February 19	6 (6)	—
2025-3	March 20	6 (6)	—
2025-4	May 13	6 (6)	—
2025-5	July 3	6 (6)	—
2025-6	August 6	6 (6)	—
2025-7	August 12	6 (6)

(5) Special Committees under the BoD and their Activities


^○		ESG Committee (January 1, 2025 ~ March 19, 2025)

Date

Agenda

Approval

February 13, 2025

1. Contribution to the POSCO Educational Foundation

• Reported Items

1. Plan to organize a Greenwashing Review Committee

2. Plan to establish an Internal ESG Control System

3. Plan to declare POSCO Group’s human rights management declaration

Approved

—


^○		ESG Committee (March 20, 2025 ~ June 30, 2025)

Date

Agenda

Approval

May 8, 2025

1. Participation in capital increase of POSCO Future M

2. Participation in capital increase of POSCO Pilbara Lithium Solution

3. Amendment to the Board of Directors’ Operating Regulations

4. Plan for the publication of the 2024 Sustainability Report

• Reported Items

- POSCO Group ESG performance in Q1 2025

Deliberated

Approved

—


^○		ESG Committee (July 1, 2025 ~ August 14, 2025)

Date

Agenda

Approval

August 6, 2025

1. Selection of construction contractor and execution of contract for POSCO Global Center Site 3

2. Equity investment in AC Fund for new business development

• Reported Items

- POSCO Group ESG performance in Q2 2025

- Operation status of the Fair Trade Compliance Program (CP) in the first half of 2024

Not approved

Approved

—


^○		Director Candidate Recommendation and Management Committee (January 1, 2025~March 19, 2025)


Date	Agenda	Approval
January 3, 2025	1. Qualification assessment of Outside Director candidates	Approved
February 19, 2025	1. Recommendation of Outside Director candidates 2. Qualification assessment of the Inside Directors candidates 3. Appointment of Special Committee members for FY 2025	Approved Deliberated Deliberated


^○		Director Candidate Recommendation and Management Committee (March 20, 2025 ~ June 30, 2025)


Date	Agenda	Approval
March 20, 2025	1. Appointment of the Representative Director & CEO	Deliberated


^○		Director Candidate Recommendation and Management Committee (July 1, 2025 ~ August 14, 2025)


Date	Agenda	Approval
August 12, 2025	1. Operation of the advisory panel for recommendation of Outside Director candidates	Approved


^○		Evaluation and Compensation Committee (January 1, 2025 ~ March 19, 2025)


Date	Agenda	Approval
January 22, 2025	1. Improvement of the company’s performance evaluation system and executive compensation system	Deliberated
February 5, 2025	1. Evaluation of the 2024 business performance	Approved
February 19, 2025	1. Evaluation of the business performance for 2025 and Evaluation plan for the Long-term business performance (‘25~‘27)	Approved


^○		Finance Committee (January 1, 2025 ~ March 19, 2025)


Date	Agenda	Approval
January 23, 2025	1. Funding plan for FY 2025	Deliberated


^○		Finance Committee (March 20, 2025 ~ June 30, 2025)

Date

Agenda

Approval

May 8, 2025

1. Participation in capital increase of POSCO Future M

2. Participation in capital increase of POSCO Pilbara Lithium Solution

Deliberated


^○		Finance Committee (July 1, 2025 ~ August 14, 2025)


Date	Agenda	Approval
July 2, 2025	1. Sale of equity stakes in Zhangjiagang and Qingdao	Deliberated
August 12, 2025	• Reported Items - Forecast of consolidated operating results for FY 2025 and analysis of financial risks - Financial impact of capital increases in three energy materials-related companies	— —


^○		CEO Candidate Pool Management Committee (March 20, 2025 ~ June 30, 2025)

Date

Agenda

Approval

August 9, 2024

1. Results of pooling for CEO candidates for the first half of 2025

2. Measures to strengthen the development of the internal CEO candidates pool

Approved

B. Audit Committee

(1) Composition of the Audit Committee

Name

Qualifications

Remarks

Sohn, Sung Kyu*

Kim, Joon Gi

Park, Sung Wook

Satisfies the requirements stipulated in the Korean Commercial Act

Chair

—

*	Sohn, Sung-Kyu is an accounting and financial expert

(2) Major Activities of the Audit Committee


^○		January 1, 2025 ~ March 19, 2025


Session	Date	Agenda	Approval
1	January 24	1. Consent to the appointment of the person in charge of the Internal Audit Department 2. Approval of audit and non-audit service contract for POSCO Holdings and its subsidiaries 3. Amendment of the Internal Control over Financial Reporting (ICFR) Regulations 4. Evaluation of ICFR operations in 2024 5. Audit Committee activities in 2024 • Reported Items - Operational status of the ICFR in 2024	Approved Approved Approved Approved Approved —
2	February 26	1. Internal audit result for 2024 2. Internal audit performance of 2024 and 2025 plan 3. Deliberation of the agenda items for the GMoS • Reported Agenda - External audit result for 2024	Approved Approved Approved —

* At the 57th General Meeting of Shareholders, convened on March 20, 2025, Audit Committee member YOO, Jin Nyong’s term expired, and Outside Director KIM, Joon Gi was elected to serve on the Audit Committee.


^○		March 20, 2025 ~ June 30, 2025


Session	Date	Agenda	Approval
3	March 20	1. Appointment of the Chair of the Audit Committee	Approved
4	April 24	1. Internal audit results for Q1 2025 consolidated financial statements 2. Approval of non-audit services for POSCO India PC • Reported Agenda - 20-F audit results for 2024 and External review results for Q1 2024 consolidated financial statements	Approved Approved —


^○		July 1, 2025 ~ August 14, 2025

Session

Date

Agenda

Approval

August 13

1. Approval of contract for non-audit service of the POSCO E&C

2. Internal audit results for Q2 2025 consolidated financial statements

3. Audit activity evaluation results of the external auditor for FY 2024

4. Results of internal audit performance for the 1st half of 2025 and plan for 2nd half of 2025

• Reported Agenda

- Design Assessment Results of the Internal Control over Financial Reporting for FY 2025

- Results of external audit on consolidated financial statements for Q2 of 2025

Approved

—

C. Voting Rights of Shareholders

(1) The Cumulative Voting System: The cumulative voting system was introduced at the 36th General Meeting of Shareholders on March 12, 2004.

(2) Deletion of Article 25 (The agenda Exercise of Voting Right in Writing) of the Articles of Incorporation was proposed at 55th General Meeting of Shareholder on March 17, 2023. For more information, please refer to our previous disclosure submitted to the SEC on February 22, 2023.

(3) The Electronic Voting System: The electronic voting system was determined at the Board of Directors meeting on February 20, 2019.

D. Compensation of Directors and Officers

(1) The Salary of Directors and Audit Committee Members


	(Unit: KRW million)
Category	No. of people		Total payment		Average payment (Per person)		Ceiling amount approved at the general meeting of shareholders		Remarks
Inside Director (Excluding Outside Director, Audit Committee Member)		4		2,518		656		10,000		—
Outside Director (Excluding Audit Committee Members)		3		149		50				—
Audit Committee Members		3		158		53				—

No. of people: The number of Directors and the Audit Committee members who are in office as of June 30, 2025.

Total payment: The total amount of remuneration paid to all Directors, including the Audit Committee members, who served from January 1 to June 30, 2025. (Including directors who retired before June 30, 2025).

Average payment per person: The sum of average payment per director per month in 2025.

POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidated financial statements

for each of the six-month periods ended June 30, 2025 and 2024

with the independent auditor’s review report

Table of Contents


	Page
Report on review of interim condensed consolidated financial statements		1

Interim condensed consolidated financial statements

Interim condensed consolidated statements of financial position		4

Interim condensed consolidated statements of comprehensive income or loss		6

Interim condensed consolidated statements of changes in equity		7

Interim condensed consolidated statements of cash flows		9

Notes to the interim condensed consolidated financial statements		11


		Ernst & Young Han Young 2-4F, 6-8F, Taeyoung Building, 111, Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 07241 Korea Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Report on review of interim condensed consolidated financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCO HOLDINGS INC.

We have reviewed the accompanying interim condensed consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the “Group”), which comprise the interim condensed consolidated statement of financial position as of June 30, 2025, and the related interim condensed consolidated statements of comprehensive income or loss for each of the three-month and six-month periods ended June 30, 2025 and 2024, interim condensed consolidated statements of changes in equity and interim condensed consolidated statements of cash flows for each of the six-month periods ended June 30, 2025 and 2024, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim condensed consolidated financial statements

Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSA”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with KIFRS 1034 Interim Financial Reporting.

Other matters

We have audited the consolidated statement of financial position of the Group as of December 31, 2024, and the related consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 12, 2025 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2024, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

August 14, 2025

This review report is effective as of August 14, 2025, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim condensed consolidated financial statements and may result in modification to this review report.

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

for each of the six-month periods ended June 30, 2025 and 2024

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

Ju tae, Lee

Representative Director & President

POSCO HODINGS INC.

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position

as of June 30, 2025 (Unaudited) and December 31, 2024


(in millions of Won)	Notes	June 30, 2025 (unaudited)		December 31, 2024
Assets
Cash and cash equivalents	21	W	7,002,287		6,767,898
Trade accounts and notes receivable, net	4,15,21,25,26,33		11,095,199		10,821,620
Other receivables, net	5,21,33		2,092,894		2,261,323
Other short-term financial assets	6,21		9,768,854		8,499,389
Inventories	7		12,337,893		14,143,500
Current income tax assets			91,957		140,494
Assets held for sale	8		477,705		608,758
Other current assets	14		790,883		786,943

Total current assets			43,657,672		44,029,925

Long-term trade accounts and notes receivable, net	4,21		27,473		27,779
Other receivables, net	5,21,33		1,476,506		1,306,329
Other long-term financial assets	6,21		2,258,240		2,571,651
Investments in associates and joint ventures	9		4,592,319		4,738,793
Investment property, net	11		1,891,881		1,955,896
Property, plant and equipment, net	12		40,258,987		39,846,828
Intangible assets, net	13		4,746,148		4,774,824
Defined benefit assets, net	19		313,750		409,147
Deferred tax assets	31		1,825,119		3,609,344
Other non-current assets	14		106,725		133,684

Total non-current assets			57,497,148		59,374,275

Total assets		W	101,154,820		103,404,200

(continued)

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position, continued

as of June 30, 2025 (Unaudited) and December 31, 2024


(in millions of Won)	Notes		June 30, 2025 (unaudited)			December 31, 2024
Liabilities
Trade accounts and notes payable		21,33	W	5,264,261			6,159,127
Short-term borrowings and current portion of long-term borrowings		15,21		11,778,391			11,115,747
Other payables		16,21,33		3,234,574			3,463,871
Other short-term financial liabilities		17,21		69,862			120,875
Current income tax liabilities				358,240			350,570
Liabilities directly associated with the assets held for sale		8		32,171			—
Provisions		18		281,683			396,030
Other current liabilities		20,25,26		1,204,586			1,173,499

Total current liabilities				22,223,768			22,779,719

Long-term trade accounts and notes payable		21		2,049			2,049
Long-term borrowings, excluding current portion		15,21		15,689,725			14,881,620
Other payables		16,21		1,122,675			809,012
Other long-term financial liabilities		17,21		126,290			72,920
Defined benefit liabilities, net		19		60,876			43,143
Deferred tax liabilities		31		664,878			2,685,549
Long-term provisions		18		573,054			580,559
Other non-current liabilities		20		101,604			99,260
Total non-current liabilities				18,341,151			19,174,112

Total liabilities				40,564,919			41,953,831

Equity
Share capital		22		482,403			482,403
Capital surplus		22		1,605,505			1,648,894
Other components of equity		23		389,225			1,155,429
Treasury shares		24		(1,176,317	)		(1,550,862	)
Retained earnings				53,365,810			53,658,367

Equity attributable to owners of the controlling company				54,666,626			55,394,231
Non-controlling interests				5,923,275			6,056,137

Total equity				60,589,901			61,450,368

Total liabilities and equity			W	101,154,820			103,404,199

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

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income

for each of the three-month and six-month periods

ended June 30, 2025 and 2024 (Unaudited)


		For the three-month period						For the six-month period
		ended June 30 (unaudited)						ended June 30 (unaudited)
(in millions of Won, except per share information)	Notes	2025			2024			2025			2024
Revenue	25,26,33	W	17,555,587			18,509,681			34,992,363			36,561,631
Cost of sales	26,30		(16,170,232	)		(17,014,684	)		(32,271,130	)		(33,737,801	)

Gross profit			1,385,355			1,494,997			2,721,233			2,823,830
Selling and administrative expenses	21,27,30
Other administrative expenses			(708,693	)		(698,199	)		(1,424,276	)		(1,383,647	)
Selling expenses			(69,490	)		(44,799	)		(121,344	)		(105,161	)

Operating profit			607,172			752,000			1,175,613			1,335,022
Share of profit of equity-accounted investees, net	9		87,516			96,361			152,800			174,180
Finance income and costs	21,28
Finance income			1,264,053			1,088,022			2,068,732			2,522,323
Finance costs			(1,591,099	)		(1,153,190	)		(2,539,259	)		(2,411,372	)
Other non-operating income and expenses	21,29,30
Other non-operating income			50,657			69,267			183,521			126,696
Other non-operating expenses			(190,617	)		(132,935	)		(303,767	)		(294,813	)

Profit before income tax			227,682			719,526			737,640			1,452,036
Income tax expense	31		(143,836	)		(173,305	)		(309,559	)		(298,001	)

Profit			83,846			546,220			428,081			1,154,035
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method			1			(52	)		(5,625	)		983
Foreign currency translation differences			(163,610	)		56,988			(156,603	)		115,642
Remeasurements of defined benefit plans	19		5,602			(3,702	)		4,938			1,816
Net changes in fair value of equity investments at fair value through other comprehensive income	21		(25,164	)		(84,595	)		14,111			(76,947	)
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method			(218,578	)		121,543			(217,283	)		198,692
Foreign currency translation differences			(596,783	)		311,282			(566,825	)		515,887
Gains or losses on valuation of derivatives	21		(133	)		385			(259	)		(22	)

Other comprehensive income (loss), net of tax			(998,665	)		401,850			(927,546	)		756,052

Total comprehensive income (loss)		W	(914,819	)		948,070			(499,465	)		1,910,087

Profit attributable to:
Owners of the controlling company		W	159,865			529,933			462,161			1,070,649
Non-controlling interests			(76,019	)		16,287			(34,080	)		83,387

Profit		W	83,846			546,220			428,081			1,154,035

Total comprehensive income attributable to:
Owners of the controlling company		W	(668,060	)		870,116			(298,224	)		1,677,787
Non-controlling interests			(246,759	)		77,954			(201,241	)		232,300

Total comprehensive income (loss)		W	(914,819	)		948,070			(499,465	)		1,910,087

Earnings per share (in Won)	32
Basic earnings per share (in Won)			2,114			6,984			6,112			14,110
Diluted earnings per share (in Won)		W	2,114			6,157			6,112			11,881

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

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	Attributable to owners of the controlling company																	Non-
	Share capital		Capital surplus			Other components of equity			Treasury shares			Retained earnings			Subtotal			controlling interests			Total
Balance as of January 1, 2024	W	482,403		1,663,334			67,256			(1,889,658	)		53,857,514			54,180,849			5,483,048			59,663,897
Comprehensive income:
Profit for the period		—		—			—			—			1,070,649			1,070,649			83,387			1,154,035
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			2,797			2,797			(981	)		1,816
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—			165,557			—			—			165,557			34,119			199,676
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			(95,570	)		—			18,660			(76,910	)		(37	)		(76,947	)
Foreign currency translation differences, net of tax		—		—			515,887			—			—			515,887			115,642			631,529
Gains or losses on valuation of derivatives, net of tax		—		—			(193	)		—			—			(193	)		171			(22	)

Total comprehensive income		—		—			585,681			—			1,092,106			1,677,787			232,301			1,910,087

Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,691	)		(189,691	)		(83,219	)		(272,909	)
Interim dividends		—		—			—			—			(189,691	)		(189,691	)		—			(189,691	)
Changes in the scope of consolidation		—		—			—			—			—			—			36,505			36,505
Changes in ownership interest in subsidiaries		—		(9,444	)		—			—			—			(9,444	)		111,704			102,260
Share based payments		—		(2,567	)		—			—			—			(2,567	)		—			(2,567	)
Others		—		4,695			(24,741	)		—			26			(20,020	)		(15,451	)		(35,470	)

Total transactions with owners of the controlling company		—		(7,316	)		(24,741	)		—			(379,356	)		(411,413	)		49,539			(361,872	)

Balance as of June 30, 2024 (Unaudited)	W	482,403		1,656,017			628,197			(1,889,658	)		54,570,265			55,447,224			5,764,888			61,212,112

(continued)

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity, continued

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	Attributable to owners of the controlling company																	Non-
	Share capital		Capital surplus			Other components of equity			Treasury shares			Retained earnings			Subtotal			controlling interests			Total
Balance as of January 1, 2025	W	482,403		1,648,894			1,155,429			(1,550,862	)		53,658,368			55,394,232			6,056,136			61,450,368
Comprehensive income:
Profit for the period		—		—			—			—			462,161			462,161			(34,080	)		428,081
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			5,353			5,353			(415	)		4,938
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—			(212,037	)		—			—			(212,037	)		(10,871	)		(222,908	)
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			12,916			—			467			13,383			728			14,111
Foreign currency translation differences, net of tax		—		—			(566,824	)		—			—			(566,824	)		(156,603	)		(723,427	)
Gains or losses on valuation of derivatives, net of tax		—		—			(259	)		—			—			(259	)		—			(259	)

Total comprehensive loss		—		—			(766,204	)		—			467,981			(298,223	)		(201,241	)		(499,464	)

Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,052	)		(189,052	)		(102,372	)		(291,424	)
Interim dividends		—		—			—			—			(189,052	)		(189,052	)		—			(189,052	)
Changes in the scope of consolidation		—		—			—			—			—			—			5,000			5,000
Changes in ownership interest in subsidiaries		—		(34,967	)		—			—			—			(34,967	)		156,631			121,664
Retirement of treasury shares		—		—			—			374,545			(374,545	)		—			—			—
Others		—		(8,422	)		—			—			(7,890	)		(16,312	)		9,121			(7,191	)

Total transactions with owners of the controlling company		—		(43,389	)		—			374,545			(760,539	)		(429,383	)		68,380			(361,003	)

Balance as of June 30, 2025 (Unaudited)	W	482,403		1,605,505			389,225			(1,176,317	)		53,365,810			54,666,626			5,923,275			60,589,901

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

POSCO HOLDINGS INC. and its Subsidiaries

Interim condensed consolidated statements of cash flows

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	Notes	June 30, 2025 (Unaudited)			June 30, 2024 (Unaudited)
Cash flows from operating activities
Profit for the period		W	428,081			1,154,035
Adjustments for:
Depreciation			1,818,192			1,688,062
Amortization			221,053			236,561
Finance income			(1,312,039	)		(1,759,462	)
Finance costs			1,536,247			1,651,499
Income tax expense			309,559			298,001
Impairment loss on property, plant and equipment			113,159			63,122
Gain on disposal of property, plant and equipment			(22,018	)		(12,050	)
Loss on disposal of property, plant and equipment			53,034			36,340
Impairment loss on goodwill and other intangible assets			25,678			11
Gain on disposal of investments in subsidiaries, associates and joint ventures			(24,973	)		(7,096	)
Loss on disposal of investments in subsidiaries, associates and joint ventures			752			42,594
Share of profit of equity-accounted investees			(152,800	)		(174,180	)
Impairment loss on disposal of assets held for sale			831			—
Gain on disposal of assets held for sale			(52,148	)		—
Loss on disposal of assets held for sale			653			34,812
Expenses related to post-employment benefit			129,051			122,762
Impairment loss on trade and other receivables			53,043			29,811
(Reversal of) Loss on valuation of inventories			(39,259	)		92,569
Increase to provisions			77,129			33,725
Insurance benefit income			(1,884	)		—
Other income			(7,347	)		(20,273	)

			2,725,913			2,356,807

Changes in operating assets and liabilities	35		(132,462	)		(272,652	)
Interest received			206,075			284,604
Interest paid			(497,113	)		(589,332	)
Dividends received			247,074			389,275
Income taxes paid			(544,806	)		(247,096	)

Net cash provided by operating activities		W	2,432,762			3,075,641

(continued)

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows, consolidated

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	Notes	June 30, 2025 (Unaudited)			June 30, 2024 (Unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments		W	(9,248,078	)		(8,489,559	)
Proceeds from disposal of short-term financial instruments			8,034,242			9,700,332
Increase in loans			(150,960	)		(186,203	)
Collection of loans			23,516			217,194
Acquisitions of securities			(620,313	)		(1,024,195	)
Proceeds from disposal of securities			337,297			561,249
Acquisitions of long-term financial instruments			(1,896	)		(3,923	)
Acquisitions of investment in associates and joint ventures			(151,870	)		(163,654	)
Proceeds from disposal of investment in associates and joint ventures			10,172			12,614
Acquisitions of investment property			—			(3,468	)
Proceeds from disposal of investment property			567			326
Acquisitions of property, plant and equipment			(2,872,762	)		(3,800,274	)
Proceeds from disposal of property, plant and equipment			154,464			14,587
Acquisitions of intangible assets			(298,296	)		(166,354	)
Proceeds from disposal of intangible assets			8,472			15,389
Proceeds from disposal of assets held for sale			221,417			—
Collection of lease receivables			13,420			14,959
Cash inflow from insurance claim			1,816			—
Disposal of net assets due to changes in consolidated entities			—			12,831
Others, net			(26,447	)		(3,597	)

Net cash used in investing activities		W	(4,565,239	)		(3,291,746	)

Cash flows from financing activities
Origination of borrowings			3,980,458			2,865,904
Repayment of borrowings			(2,233,025	)		(1,803,239	)
Repayment of short-term borrowings, net			1,024,032			739,501
Capital contribution from non-controlling interests			172,573			139,416
Payment of cash dividends			(480,768	)		(462,624	)
Repayment of lease liabilities			(92,399	)		(92,954	)
Others, net			125,512			87,136

Net cash provided by financing activities		W	2,496,383			1,473,141

Effect of exchange rate fluctuation on cash held			(122,515	)		106,504

Net increase in cash and cash equivalents			241,391			1,363,541
Changes in cash classified as assets held for sale			(7,002	)		—
Cash and cash equivalents at beginning of the period			6,767,898			6,670,879

Cash and cash equivalents at end of the period		W	7,002,287			8,034,419

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

June 30, 2025 and 2024 (Unaudited)

1. General Information

General information about POSCO HOLDINGS INC. (the “Company”), the controlling company, and its subsidiaries in the scope of consolidation, such as 58 domestic subsidiaries including POSCO INC. and 135 foreign subsidiaries including POSCO America Corporation, and 116 associates and joint ventures (collectively referred to as the “Group”) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1110 is as follows:

(a)	The controlling company

POSCO HOLDINGS INC., the controlling company, was established on April 1, 1968, under the Commercial Act of the Republic of Korea. The shares of the Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business that controls and manages subsidiaries, etc. through ownership of their shares.

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

As of June 30, 2025, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

(b)	Consolidated subsidiaries acquired or newly established for the six-month period ended June 30, 2025 are as follows:


Company	Date of inclusion		Ownership (%)	Reason
POSCO Deep Tech Technology Finance Fund		Jnue 2025	60.00	New establishment
FUTURE GRAPH CO., LTD.		Jnue 2025	100.00	New establishment

(c)	Consolidated subsidiaries over which the Company has lost control for the six-month period ended June 30, 2025 are as follows:


Company	Date of exclusion		Reason
SANPU TRADING Co., Ltd.		May 2025	liquidation
NEH Co., Ltd.		June 2025	Merger

2. Basis of Preparation

Statement of compliance

The interim condensed consolidated financial statements have been prepared in accordance with KIFRS 1034 Interim Financial Reporting, as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. The accompanying interim condensed consolidated financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 2024. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group incurred after December 31, 2024.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

2. Basis of Preparation (cont’d)

These interim condensed consolidated financial statements do not include all of the disclosures required for full annual financial statements.

Use of estimates and judgments

(a)	Judgments, assumptions and estimation uncertainties

The preparation of the interim condensed consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

(b)	Measurement of fair value

The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.

The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

Significant valuation issues are reported to the Group’s Audit Committee.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

•

Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2 - inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly.

•

Level 3 - inputs for the assets or liabilities that are not based on observable market data.

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

3. Summary of Material Accounting Policy Information

Except for the items described below, the accounting policies applied by the Group in these interim condensed consolidated financial statements are the same as those applied to the consolidated financial statements as of and for the year ended December 31, 2024.

Changes

in accounting policies

(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 is not exchangeable into the other currency affects, or is expected to affect, the Group’s financial performance, financial position, and cash flows.

The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. When applying the amendment, the Group is not required to restate comparative information.

The amendments are not expected to have a material impact on the Group’s interim condensed consolidated financial statements.

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Current
Trade accounts and notes receivable	W	9,869,010			9,654,940
Due from customers for contract work		1,577,858			1,488,180
Less: Allowance for doubtful accounts		(351,669	)		(321,501	)

	W	11,095,199			10,821,619

Non-current
Trade accounts and notes receivable	W	72,005			72,387
Less: Allowance for doubtful accounts		(44,532	)		(44,608	)

	W	27,473			27,779

The Group discounted trade accounts receivable in accordance with trade accounts receivable factoring agreements with financial institutions for the six-month period ended June 30, 2025 and the year ended December 31, 2024. This transaction is a transaction with recourse rights because the Group is obligated to pay the amount to the bank, etc. if the trade accounts receivable are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of June 30, 2025 and December 31, 2024, the book value of the trade accounts receivable from the transaction is W233,719 million and W119,076 million, respectively, and the amount is included in the short-term borrowings.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

5. Other Receivables

Other receivables as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Current
Short-term loans	W	356,741			375,244
Other accounts receivable		1,565,071			1,671,039
Accrued income(*1)		261,259			293,985
Deposits		52,557			80,007
Others		44,346			28,480
Lease receivables		14,320			18,224
Less: Allowance for doubtful accounts(*1)		(201,400	)		(205,656	)

	W	2,092,894			2,261,323

Non-current
Long-term loans(*1)	W	1,266,006			1,247,255
Other accounts receivable		175,897			192,736
Accrued income		197,235			189,565
Deposits		296,802			142,698
Lease receivables		66,675			76,680
Less: Allowance for doubtful accounts(*1)		(526,109	)		(542,605	)

	W	1,476,506			1,306,329

(*1)	The Group recognized an allowance for doubtful accounts for the entire other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

6. Other Financial Assets

Other financial assets as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Derivatives assets	W	226,841		465,178
Debt securities		710,258		400,771
Deposit instruments(*1)		7,995,465		6,420,797
Short-term financial instruments(*1)		836,290		1,212,643

	W	9,768,854		8,499,389

Non-current
Derivatives assets	W	85,216		497,698
Equity securities(*2)		1,291,097		1,171,544
Debt securities		114,197		115,601
Other securities(*2)		739,626		762,177
Deposit instruments(*1)		28,104		24,631

	W	2,258,240		2,571,651

(*1)	As of June 30, 2025 and December 31, 2024, financial instruments amounting to W107,100 million and W98,116 million, respectively, are restricted in use for financial arrangements, pledge and others.

(*2)	As of June 30, 2025 and December 31, 2024, W185,105 million and W182,862 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

7. Inventories

(a) Inventories as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Finished goods	W	2,344,864			2,741,236
M erchandise		1,008,527			1,166,464
Semi-finished goods		2,413,192			2,659,707
Raw materials		3,349,950			3,764,453
Fuel and materials		1,056,558			1,038,854
Construction inventories		177,847			200,825
M aterials-in-transit		2,273,054			2,889,334
Others		98,583			118,391

		12,722,575			14,579,264

Less: Allowance for inventories valuation(*1)		(384,682	)		(435,764	)

	W	12,337,893			14,143,500

(*1)	For each of the six-month periods ended June 30, 2025 and 2024, allowance for inventories valuation decreased by W39,259 million and W84,809 million, respectively.

(b) The allowances for inventories valuation by item as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Finished goods	W	162,283		187,902
M erchandise		11,524		14,288
Semi-finished goods		86,522		103,751
Raw materials		108,427		113,413
Fuel and materials		5,616		6,060
Construction inventories		5,965		6,420
Others		4,345		3,930

	W	384,682		435,764

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

8. Assets Held for Sale

Details of assets held for sale as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Asset
Cash and cash equivalents	W	7,002			—
Account reveivables		20,270			—
Inventories		12,393			—
Equity securities(*1)		402,860			604,439
Property, plant and equipment		33,550			4,319
Intangible assets		470			—
Others		1,160			—

	W	477,705			608,758

Liability
Other receivables	W	(32,171	)		—

(*1)	Including equity securities of Nippon Steel Corporation amounting to W402,860 million, which have been classified as assets held for sale for the year ended December 31, 2024.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

9. Investments in Associates and Joint ventures

(a)	Details of investments in associates as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025								December 31, 2024
Company	Number of shares		Ownership (%)		Acquisition cost		Book value		Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1)		4,507,138		34.00	W	473,093	W	417,653		392,269
Chun-cheon Energy Co., Ltd(*1)		17,308,143		49.10		86,541		14,044		14,054
Pocheon-Hwado Highway Corp.(*1)		7,109,230		27.89		35,546		17,661		14,834
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd		944,920		29.53		4,725		12,346		12,401
PCC Amberstone Private Equity Fund 1(*2)		4,880,421,842		8.80		4,880		5,071		6,181
Others(*1)								121,144		122,688

								587,919		562,427

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		135,219,000		25.04		107,269		271,387		279,349
9404-5515 Quebec Inc.		284,463,243		25.85		328,509		374,619		426,276
AMCI (WA) PTY LTD		49		49.00		209,664		87,775		68,478
KOREA LNG LTD.		2,400		20.00		135,205		18,455		25,622
PT. Wampu Electric Power(*1)		8,708,400		20.00		10,054		15,814		17,680
POS-SeAH Steel Wire(Nantong) Co., Ltd.		50		25.00		4,723		10,266		10,713
M RES NSW HCC II Pty Ltd(*3)		48,000,000		80.00		68,861		64,920		—
Others(*1)								206,502		241,841

								1,049,738		1,069,959

							W	1,637,657		1,632,386

(*1)	As of June 30, 2025 and December 31, 2024, investments in associates amounting to W479,546 million and W452,614 million, respectively, are provided as collateral in relation to the associates’ borrowings.

(*2)	As of June 30, 2025, the entity is classified as an associate since the Group has significant influence over the investee although the Group’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.

(*3)	As of June 30, 2025, the entity is classified as an associate since the Group has significant influence over the investee although the Group’s percentage of ownership exceeds a majority, considering the structure of the entity’s Board of Directors and others.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

(b)	Details of investments in joint ventures as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025								December 31, 2024
Company	Number of shares		Ownership (%)		Acquisition cost		Book value		Book value
[Domestic]
POSCO MC MATERIALS		11,568,000		60.00	W	115,680	W	146,200		153,839
SNNC		18,130,000		49.00		90,650		38,156		38,046
Others								17,531		10,042

								201,887		201,927

[Foreign]
Roy Hill Holdings Pty Ltd(*1)		13,117,972		12.50		1,528,672		1,311,455		1,397,824
POSCO-NPS Niobium LLC		325,050,000		50.00		364,609		440,974		477,898
KOBRASCO		2,010,719,185		50.00		32,950		117,226		119,820
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		—		25.00		61,961		113,922		126,906
PT NICOLE METAL INDUSTRY		152,764,706		49.00		603,178		602,191		578,604
HBIS-POSCO Automotive Steel Co., Ltd		—		50.00		235,251		147,071		179,841
Others								19,936		23,587

								2,752,775		2,904,480

							W	2,954,662		3,106,407

(*1)	As of June 30, 2025 and December 31, 2024, the investments in joint ventures are provided as collateral in relation to the joint ventures’ borrowings.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

(c)	Changes in investments in associates and joint ventures for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)
Company	January 1, 2025 Book value		Acquisition		Dividends			Share of profits (losses)			Other increase *(decrease)(1)**			June 30, 2025 Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	W	392,269		17,509		(2,795	)		10,662			8			417,653
SNNC		38,046		—		—			110			—			38,156
Chun-cheon Energy Co., Ltd		14,054		—		—			(80	)		70			14,044
Pocheon-Hwado Highway Corp.		14,834		—		—			2,646			181			17,661
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd		12,401		—		—			(56	)		1			12,346
PCC Amberstone Private Equity Fund 1		6,181		—		—			(219	)		(891	)		5,071
POSCO MC MATERIALS		153,839		—		(3,000	)		(4,640	)		1			146,200
Others		132,730		2,927		(872	)		2,851			1,039			138,675

		764,354		20,436		(6,667	)		11,274			409			789,806

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		279,349		—		(11,941	)		30,781			(26,802	)		271,387
9404-5515 Quebec Inc.		426,276		—		(21,180	)		8,145			(38,622	)		374,619
AMCI (WA) PTY LTD		68,478		—		—			27,546			(8,249	)		87,775
KOREA LNG LTD.		25,622		—		(3,726	)		3,885			(7,326	)		18,455
PT. Wampu Electric Power		17,680		—		(875	)		357			(1,348	)		15,814
POS-SeAH Steel Wire(Nantong) Co., Ltd.		10,713		—		—			471			(918	)		10,266
Roy Hill Holdings Pty Ltd		1,397,824		—		(118,313	)		76,305			(44,361	)		1,311,455
POSCO-NPS Niobium LLC		477,898		—		(9,896	)		9,785			(36,813	)		440,974
KOBRASCO		119,820		—		(18,197	)		10,165			5,438			117,226
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		126,906		—		(11,440	)		5,718			(7,262	)		113,922
PT NICOLE METAL INDUSTRY		578,604		62,573		—			1,300			(40,286	)		602,191
HBIS-POSCO Automotive Steel Co., Ltd		179,841		—		—			(23,314	)		(9,456	)		147,071
M RES NSW HCC II Pty Ltd		—		68,861		—			—			(3,941	)		64,920
Others		265,428		—		(7,038	)		(9,618	)		(22,334	)		226,438

		3,974,439		131,434		(202,606	)		141,526			(242,280	)		3,802,513

	W	4,738,793		151,870		(209,273	)		152,800			(241,871	)		4,592,319

(*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 six-month period ended June 30, 2025.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

For the year ended December 31, 2024


(in millions of Won)
Company	January 1, 2025 Book value		Acquisition		Dividends			Share of profits (losses)			Other increase *(decrease)(1)**			December 31, 2024 Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	W	323,521		25,680		(10,993	)		54,140			(79	)		392,269
SNNC		100,692		—		—			(61,898	)		(748	)		38,046
Chun-cheon Energy Co., Ltd		15,040		—		—			1,807			(2,793	)		14,054
Pocheon-Hwado Highway Corp.		23,998		—		—			(9,164	)		—			14,834
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd		13,967		—		—			(384	)		(1,182	)		12,401
PCC Amberstone Private Equity Fund 1		8,904		175		(490	)		(484	)		(1,924	)		6,181
POSCO MC MATERIALS		155,748		—		(1,800	)		403			(512	)		153,839
Others		150,985		12,362		(4,999	)		(6,802	)		(18,816	)		132,730

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

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

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

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

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

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

(d)	The summarized financial information on associates and joint ventures as of and for the six-month period ended June 30, 2025 and the year ended December 31, 2024 is as follows:

As of and for the six-month period ended June 30, 2025


(in millions of Won)
Company	Assets		Liabilities		Equity (deficit)			Sales		Net income (loss)
[Domestic]
Samcheok Blue Power Co.,Ltd.	W	5,117,386		4,280,847		836,539			251,735		34,108
SNNC		627,131		527,180		99,951			401,816		4,432
Chun-cheon Energy Co., Ltd		537,491		417,523		119,968			190,759		(3,225	)
Pocheon-Hwado Highway Corp.		692,553		591,518		101,035			12,089		8,938
CHUNGJU ENTERPRISE CITY
DEVELOPMENT Co.,Ltd		14,388		2,881		11,507			1,050		(188	)
PCC Amberstone Private Equity Fund 1		57,955		302		57,653			2,654		(2,489	)
POSCO MC MATERIALS		356,852		111,468		245,384			99,421		(7,552	)
[Foreign]
South-East Asia Gas Pipeline Company Ltd.		1,503,655		419,846		1,083,809			234,361		122,926
9404-5515 Quebec Inc.		1,529,597		2,746		1,526,851			—		31,510
FQM Australia Holdings Pty Ltd		55,528		1,427,852		(1,372,324	)		—		(26,219	)
KOREA LNG LTD.		92,570		292		92,278			20,554		19,425
Nickel Mining Company SAS		515,844		306,357		209,487			97,596		(30,192	)
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		276,972		29,460		247,512			53,186		(21,908	)
PT. Wampu Electric Power		188,208		110,694		77,514			10,081		1,783
POS-SeAH Steel Wire(Nantong) Co., Ltd.		97,232		57,990		39,242			73,232		1,765
Roy Hill Holdings Pty Ltd		10,260,308		2,496,395		7,763,913			3,541,496		823,745
POSCO-NPS Niobium LLC		881,744		—		881,744			—		19,118
KOBRASCO		281,474		47,628		233,846			29,628		20,330
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		918,023		489,464		428,559			693,528		22,871
DMSA/AMSA		827,057		541,803		285,254			337,798		(1,646,458	)
HBIS-POSCO Automotive Steel Co., Ltd		941,706		630,586		311,120			240,957		(47,119	)
PT NICOLE METAL INDUSTRY		1,087,134		271,345		815,789			191,778		2,703
M RES NSW HCC II Pty Ltd		81,384		—		81,384			—		—

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

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

10. Joint Operations

Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of June 30, 2025 are as follows:


Joint operations	Operation	Ownership (%)	Location
Myanmar A-1/A-3 mine	Mine development and gas production	51.00	Myanmar
Offshore midstream	Gas transportation facility	51.00	Myanmar
Mt. Thorley J/V	Mine development	20.00	Australia
POSMAC J/V	Mine development	20.00	Australia

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

11. Investment Property

Changes in the carrying amounts of investment properties for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

(a)	For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Disposals			Depreciation			*Others(1)**			Ending
Land	W	866,450		(510	)		—			(14,393	)		851,547
Buildings		942,851		(189	)		(6,972	)		(30,521	)		905,169
Structures		1,755		—			(454	)		115			1,416
Right of use assets		144,840		(57	)		(2,661	)		(8,373	)		133,749

	W	1,955,896		(756	)		(10,087	)		(53,172	)		1,891,881

(*1)	Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others.

(b)	For the year ended December 31, 2024


(in millions of Won)	Beginning		Acquisitions		Business *Combination(1)**		Disposals			Depreciation			Impairment loss			*Others(2)**			Ending
Land	W	787,304		3,755		59,766		(47,137	)		—			(215	)		62,977			866,450
Buildings		655,786		1,782		355,155		(34,419	)		(34,179	)		(9,776	)		8,502			942,851
Structures		1,873		—		—		—			(911	)		—			793			1,755
Right of use assets		171,331		—		—		(107	)		(6,547	)		—			(19,837	)		144,840

	W	1,616,294		5,537		414,921		(81,663	)		(41,637	)		(9,991	)		52,435			1,955,896

(*1)	For the year ended December 31, 2024, RNR Logistics and others were included as subsidiaries, and the Group has included the effect of the increase in investment properties in the business combination.

(*2)	Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

12. Property, Plant and Equipment

(a)	Changes in the carrying amounts of property, plant and equipment for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			Impairment loss			*Others(1)**			Ending
Land	W	3,335,875		674		(26	)		—			(1,476	)		13,592			3,348,639
Buildings		5,280,968		2,390		(10,873	)		(194,966	)		—			418,372			5,495,891
Structures		3,860,523		6,085		(100,291	)		(162,439	)		(2,530	)		331,231			3,932,579
Machinery and equipment		18,311,678		42,093		(17,505	)		(1,266,157	)		(69,461	)		1,152,895			18,153,543
Vehicles		89,975		4,736		(1,121	)		(19,957	)		—			4,671			78,304
Tools		134,501		6,624		(718	)		(26,941	)		(4	)		(37	)		113,425
Furniture and fixtures		200,033		8,836		(387	)		(39,449	)		—			51,290			220,323
Lease assets		970,634		477,849		(19,797	)		(93,348	)		—			(28,297	)		1,307,041
Bearer plants		139,451		—		(65	)		(4,847	)		—			(11,147	)		123,392
Construction-in-progress		7,523,190		2,774,742		(9	)		—			(39,688	)		(2,772,385	)		7,485,850

	W	39,846,828		3,324,029		(150,792	)		(1,808,104	)		(113,159	)		(839,815	)		40,258,987

(*1)	Presenting assets transferred from construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.

For the year ended December 31, 2024


(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			Impairment *loss(2,3)**			*Others(1)**			Ending
Land	W	3,290,244		20,523		(6,061	)		—			(6,620	)		37,789			3,335,875
Buildings		4,427,632		14,002		(11,137	)		(346,334	)		(67,797	)		1,264,602			5,280,968
Structures		3,081,524		11,663		(4,497	)		(306,017	)		(15,328	)		1,093,178			3,860,523
Machinery and equipment		16,539,192		179,457		(47,511	)		(2,484,915	)		(385,367	)		4,510,822			18,311,678
Vehicles		79,595		17,353		(1,487	)		(39,263	)		(56	)		33,833			89,975
Tools		128,865		28,731		(673	)		(54,966	)		(1,573	)		34,117			134,501
Furniture and fixtures		189,887		27,966		(2,380	)		(70,561	)		(3,260	)		58,381			200,033
Lease assets		998,305		132,219		(18,706	)		(177,475	)		(1,994	)		38,285			970,634
Bearer plants		137,331		—		(27	)		(9,602	)		—			11,749			139,451
Construction-in-progress		6,333,673		7,634,826		(3,482	)		—			(128,119	)		(6,313,708	)		7,523,190

	W	35,206,248		8,066,740		(95,961	)		(3,489,133	)		(610,114	)		769,048			39,846,828

(*1)	Presenting assets transferred from construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.

(*2)

The Group calculated the net fair value of individual assets, such as steelmaking plant no. 1 and blast furnace no. 4 in Pohang, whose operation was suspended due to operation plan changes, to estimate recoverable amount and recognized an impairment loss of W227,239 million for property, plant and equipment for the year ended December 31, 2024.

(*3)

The Group identified a certain portion of the anode/cathode material assets that were in long-term idle status or expected to fall short of the anticipated economic performance for the year ended December 31, 2024. The Group calculated the net fair value of such individual assets to estimate the recoverable amount and recognized an impairment loss of W307,911 million for assets whose recoverable amounts are less than their carrying amounts.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

(b)	Changes in the carrying amounts of right-of-use assets presented as investment properties and property, plant and equipment for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		Depreciation			Impairment loss		Others			Ending
Land	W	348,918		5,701		(7,188	)		—		(29,405	)		318,026
Buildings and structures		154,747		60,376		(29,718	)		—		(14,056	)		171,349
Machinery and equipment		346,642		138,910		(26,128	)		—		(2,081	)		457,343
Vehicles		45,071		6,675		(10,064	)		—		(732	)		40,950
Ships		196,070		264,508		(14,303	)		—		—			446,275
Others		24,026		1,679		(8,608	)		—		(10,250	)		6,847

	W	1,115,474		477,849		(96,009	)		—		(56,524	)		1,440,790

For the year ended December 31, 2024


(in millions of Won)	Beginning		Acquisitions		Depreciation			Impairment loss			Others			Ending
Land	W	363,789		1,542		(17,501	)		(1,994	)		3,082			348,918
Buildings and structures		151,366		58,116		(54,092	)		—			(643	)		154,747
Machinery and equipment		355,604		37,204		(47,797	)		—			1,631			346,642
Vehicles		48,228		12,501		(20,291	)		—			4,633			45,071
Ships		220,754		—		(24,684	)		—			—			196,070
Others		29,895		22,856		(19,657	)		—			(9,068	)		24,026

	W	1,169,636		132,219		(184,022	)		(1,994	)		(365	)		1,115,474

(c)	The amounts recognized in profit or loss related to leases for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30				For the six-month periods ended June 30
(in millions of Won)	2025		2024		2025		2024
Interest on lease liabilities	W	13,364		11,966		24,786		24,312
Expenses related to short-term leases		8,958		9,509		20,584		28,444
Expenses related to leases of low-value assets		2,803		6,215		7,856		12,871

	W	25,125		27,690		53,226		65,627

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

13. Goodwill and Other Intangible Assets

Changes in the carrying amounts of goodwill and other intangible assets for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

(a)

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		Disposals			Amortization			Impairment loss			*Others(2)**			Ending
Goodwill	W	357,851		—		—			—			—			(716	)		357,135
Intellectual property rights		3,247,517		185,139		(1	)		(143,479	)		(25,665	)		(39,212	)		3,224,299
Membership(*1)		136,108		723		(2,221	)		(93	)		(11	)		(339	)		134,167
Development expense		95,041		7,762		—			(16,336	)		—			10,257			96,724
Port facilities usage rights		167,996		—		—			(7,422	)		—			—			160,574
Exploratation and evaluation assets		115,309		33,323		—			—			—			(5,085	)		143,547
Development assets		86,711		—		—			(168	)		—			(31,842	)		54,701
Customer relationships		145,699		—		—			(22,239	)		—			6,971			130,431
Other intangible assets		422,592		68,028		(41	)		(31,316	)		(2	)		(14,691	)		444,570

	W	4,774,824		294,975		(2,263	)		(221,053	)		(25,678	)		(74,657	)		4,746,148

(*1)	Estimated useful life of membership is indefinite.

(*2)	Presenting assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and others.

(b)

For the year ended December 31, 2024


(in millions of Won)	Beginning		Acquisitions		Business Combination		Disposals			Amortization			Impairment loss			*Others(2)**			Ending
Goodwill	W	403,172		—		282		—			—			(46,958	)		1,355			357,851
Intellectual property rights		3,029,651		353,175		—		(240	)		(272,730	)		—			137,661			3,247,517
Membership(*1)		138,184		1,716		—		(4,179	)		(180	)		29			538			136,108
Development expense		126,818		15,913		—		(22	)		(63,684	)		(692	)		16,708			95,041
Port facilities usage rights		182,411		—		—		—			(14,415	)		—			—			167,996
Exploratation and evaluation assets		163,446		21,024		—		—			—			—			(69,161	)		115,309
Development assets		10,235		543		—		—			(76	)		—			76,009			86,711
Customer relationships		196,895		—		—		—			(44,478	)		—			(6,718	)		145,699
Other intangible assets		463,972		118,563		—		(102,012	)		(58,126	)		(252	)		447			422,592

	W	4,714,784		510,934		282		(106,453	)		(453,689	)		(47,873	)		156,839			4,774,824

(*1)	Estimated useful life of membership is indefinite.

(*2)	Presenting assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and others.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

14. Other Assets

Other assets as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Advance payments	W	548,417		509,922
Prepaid expenses		222,428		259,145
Firm commitment asset		5,219		2,489
Other current assets		14,819		15,387

	W	790,883		786,943

Non-current
Long-term advance payments	W	40,174		33,308
Long-term prepaid expenses		18,425		20,689
Others		48,126		79,688

	W	106,725		133,685

15. Borrowings

(a)	Short-term borrowings and current portion of long-term borrowings and others as of June 30, 2025 and December 31, 2024 are as follows:

(in millions of Won)

Lenders

Issuance date

Maturity date

Interest rate
(%)

June 30, 2025

December 31,
2024

Short-term borrowings

Bank overdrafts

JP Morgan and others

July, 2024 ~

June, 2025

July, 2025 ~

June, 2026

3.65 ~ 7.40

53,092

85,892

Short-term borrowings

HSBC and others

April, 2024 ~

June, 2025

July, 2025 ~

June, 2026

0.49 ~ 8.10

6,040,359

5,647,199

6,093,451

5,733,091

Current portion of long-term liabilities

Current portion of long-term borrowings

Export-Import Bank of
Korea and others

December, 2006 ~

June, 2025

July, 2025 ~

June, 2026

0.19 ~ 6.40

1,086,204

1,323,002

Current portion of debentures

KB Securities co.,Ltd. and others

July, 2015 ~

March, 2024

July, 2025 ~

June, 2026

1.68 ~ 5.80

4,561,060

4,024,084

Less: Current portion of discount on debentures issued

(4,033

)

(3,483

)

Current portion of exchangable bonds(*1)

Foreign currency exchangable bonds

September, 2021

September, 2026

41,709

39,053

5,684,940

5,382,656

11,778,391

11,115,747

(*1)	The Group classified the exchangeable bonds as current liabilities in consideration of the investor’s exchange right.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

15. Borrowings (cont’d)

The issuance conditions of the exchangeable bonds issued by the Company are as follows:


		Foreign currency exchangeable bonds

Type of bond		Exchangeable bonds

Aggregate principal amount(*1)		EUR 27,100,000

Interest rate		- Coupon rate : -

		- Yield to maturity : (0.78%)

Maturity date		September 1, 2026

Redemption		- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at maturity as a lump sum

		- Prepayment : The issuer has call option and the bondholders have put option

Exchange rate		100%

Exchange price(*2) (Won/share)		429,064

Underlying shares		Registered common shares(treasury shares)

Exchange period		From October 12, 2021 to August 22, 2026

Adjustments for exchange price		Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.

Put option by bondholders		- In the event of a change of control of the Company

		- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)

Call option by the issuer		- Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds

		- When the outstanding balance of outstanding bonds is less than 10% of the total issuance (Clean-Up Call)

		- Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc

(*1)	Due to put option exercised by bondholders, EUR 1,038,800,000 was redeemed out of the total face value of exchangeable bonds of EUR 1,065,900,000 for the year ended December 31, 2024.

(*2)	The exchange price has changed due to cash dividends paid for the six-month period ended June 30, 2025.

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

15. Borrowings (cont’d)

(b)	Long-term borrowings, excluding current portion and others, as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	Lenders	Issuance date	Maturity date	Interest rate (%)		June 30, 2025			December 31, 2024
Long-term borrowings	Export-Import Bank of Korea and others	September, 2001 ~ June, 2025	July, 2026 ~ March, 2040		0.10 ~ 8.50	W	6,098,980			4,868,703
Less: Present value discount							(47,022	)		(51,173	)
Bonds	KB Securities co., Ltd. and others	July, 2019 ~ May, 2025	July, 2026 ~ May, 2035		1.72 ~ 6.38		9,682,140			10,108,600
Less: Discount on debentures issued							(44,373	)		(44,510	)

						W	15,689,725			14,881,620

(c)	Assets pledged as collateral with regard to the borrowings as of June 30, 2025 are as follows:


(in millions of Won)	Lenders	Book value		Pledged amount
Property, plant and equipment and Investment property	Korea Development Bank and others	W	3,987,683		4,957,270
Trade accounts and notes receivable	Korea Development Bank and others		233,719		233,719
Financial instruments	Korea Development Bank and others		72,157		72,157

		W	4,293,559		5,263,146

16. Other Payables

Other payables as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Accounts payable	W	1,585,896		1,652,957
Accrued expenses		1,118,497		1,275,068
Dividend payable		3,807		4,182
Lease liabilities		182,232		161,601
Withholdings		344,142		370,063

	W	3,234,574		3,463,871

Non-current
Accounts payable	W	5,646		6,096
Accrued expenses		14,866		11,979
Lease liabilities		1,052,990		744,500
Long-term withholdings		49,172		46,437

	W	1,122,674		809,012

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

17. Other Financial Liabilities

Other financial liabilities as of June 30, 2025 and December 31, 2024 are as follows:

17. Other Financial Liabilities


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Derivative liabilities	W	56,361		108,786
Financial guarantee liabilities		6,385		4,972
Others		7,116		7,117

	W	69,862		120,875

Non-current
Derivative liabilities	W	57,607		2,236
Financial guarantee liabilities		8,824		8,944
Others		59,859		61,740

	W	126,290		72,920

18. Provisions

(a)	Provisions as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025				December 31, 2024
	Current		Non-current		Current		Non-current
Provision for bonus payments	W	93,016		70,975		121,757		70,104
Provision for construction warranties		41,908		143,149		49,659		137,201
Provision for legal contingencies and claims(*1)		6,058		77,564		17,960		78,486
Provision for the restoration		4,496		205,163		10,041		197,810
Others(*2)		136,205		76,203		196,613		96,958

	W	281,683		573,054		396,030		580,559

(*1)	The Group recognized probable outflow of resources amounting to W63,936million and W80,220 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of June 30, 2025 and December 31, 2024, respectively.

(*2)

According to the Act on the promotion of the development, use and diffusion of new and renewable energy, POSCO INTERNATIONAL Corporation is obliged to supply a certain amount of power generated by new and renewable energy sources. In accordance with the Act, POSCO INTERNATIONAL Corporation estimated the cost required to fulfill its obligations, such as insufficient supply of power using new and renewable energy to be borne, and as of June 30, 2025 and December 31, 2024, the Group recognized W12,367 million and W64,249 million respectively, as provision.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

18. Provisions (cont’d)

(b)	Changes in provisions for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Increase		Utilization			Reversal			*Others(1)**			Ending
Provision for bonus payments	W	191,861		35,108		(79,854	)		(4,639	)		21,515			163,991
Provision for construction warranties		186,860		10,134		(10,342	)		(1,284	)		(311	)		185,057
Provision for legal contingencies and claims		96,446		2,763		(9,341	)		(2,026	)		(4,220	)		83,622
Provision for the restoration		207,851		13,668		(256	)		(4,811	)		(6,793	)		209,659
Others		293,571		63,600		(7,253	)		(16,114	)		(121,396	)		212,408

	W	976,589		125,273		(107,046	)		(28,874	)		(111,205	)		854,737

(*1)	Including adjusted foreign currency translation differences and others.

For the year ended December 31, 2024


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

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

(*1)	Including transfer to liabilities held for sale and adjusted foreign currency translation differences and others.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

19. Employee Benefits

(a)	Defined contribution plans

The expenses related to defined contribution retirement plans for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

(in millions of Won)

For the three-month periods
ended June 30

For the six-month periods
ended June 30

2025

2024

2025

2024

Expense related to post-employment benefit plans under defined contribution plans

18,867

18,731

37,631

37,400

(b)	Defined benefit plans

The amounts recognized in relation to net defined benefit assets in the statements of financial position as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Present value of funded obligations	W	2,557,298			2,589,246
Fair value of plan assets(*1)		(2,815,473	)		(2,962,342	)
Present value of non-funded obligations		5,301			7,092

Net defined benefit liabilities	W	(252,874	)		(366,004	)

(*1)	As of June 30, 2025 and December 31, 2024, the Group recognized net defined benefit assets amounting to W313,750 million and W409,147 million, respectively, since there are consolidated entities whose fair value of plan assets exceeded the present value of defined benefit obligations.

The amounts recognized in relation to net defined benefit plan in the interim condensed consolidated statements of comprehensive income for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30						For the six-month periods ended June 30
(in millions of Won)	2025			2024			2025			2024
Current service costs	W	67,164			65,526			136,942			133,348
Net interest costs		(3,635	)		(5,011	)		(7,891	)		(10,585	)

	W	63,529			60,515			129,051			122,763

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

20. Other Liabilities

Other liabilities as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Due to customers for contract work	W	471,907		491,495
Advances received		388,226		253,171
Unearned revenue		120,078		87,969
Withholdings		195,083		307,753
Firm commitment liability		5,299		10,384
Others(*1)		23,993		22,726

	W	1,204,586		1,173,498

Non-current
Unearned revenue	W	3,857		4,317
Others(*1)		97,747		94,942

	W	101,604		99,259

(*1)	As of June 30, 2025 and December 31, 2024, the Group recognized the assumed liability amounting to W37,590 million and W41,770 million, respectively, related to unfavorable terms of a customer contract compared to market-terms upon the acquisition of Senex Energy Limited.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

21. Financial Instruments

(a) Classification and fair value of financial instruments

The carrying amounts and fair values of financial assets and financial liabilities by levels in the fair value hierarchy as of June 30, 2025 and December 31, 2024 are as follows:

①

June 30, 2025


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	304,187		—		304,187		—		304,187
Short-term financial instruments		836,290		—		836,290		—		836,290
Equity securities		74,676		15,491		—		59,185		74,676
Debt securities		115,167		—		82,461		32,706		115,167
Other securities		739,626		—		—		739,626		739,626
Derivative hedging instruments(*2)		7,870		—		7,870		—		7,870
Fair value through other comprehensive income
Equity securities		1,216,421		782,405		—		434,016		1,216,421
Assets held for sale		402,860		402,860		—		—		402,860
Financial assets measured at amortized cost(*1)						—
Cash and cash equivalents		7,002,287		—		—		—		—
Trade accounts and notes receivable		9,557,255		—		—		—		—
Other receivables		2,749,616		—		—		—		—
Debt securities		709,288		—		—		—		—
Deposit instruments		8,023,569		—		—		—		—
Assets held for sale		27,272		—		—		—		—

	W	31,766,384		1,200,756		1,230,808		1,265,533		3,697,097

Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	108,260		—		108,260		—		108,260
Borrowings		41,709		41,709		—		—		41,709
Derivative hedging instruments(*2)		5,708		—		5,708		—		5,708
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		5,266,310		—		—		—		—
Borrowings		27,426,407		—		27,673,436		—		27,673,436
Financial guarantee liabilities		15,209		—		—		—		—
Others		3,708,520		—		—		—		—
Other financial Liabilities		66,975		—		—		—		—

	W	36,639,098		41,709		27,787,404		—		27,829,113

(*1)	The fair values of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts.

(*2)

The Group applies hedge accounting which uses forward contracts as hedging instruments in order to hedge the risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instruments in order to hedge the risk of interest rate and foreign exchange rate changes in foreign currency which influence cash flow from borrowings.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

21. Financial Instruments (cont’d)

②

December 31, 2024


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	946,393		—		946,393		—		946,393
Short-term financial instruments		1,212,643		—		1,212,643		—		1,212,643
Equity securities		52,222		26,792		—		25,430		52,222
Debt securities		113,728		—		82,699		31,029		113,728
Other securities		762,177		—		—		762,177		762,177
Derivative hedging instruments(*2)		16,483		—		16,483		—		16,483
Fair value through other comprehensive income
Equity securities		1,119,322		703,181		—		416,141		1,119,322
Assets held for sale		604,439		604,439		—		—		604,439
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		6,767,898		—		—		—		—
Trade accounts and notes receivable		9,374,217		—		—		—		—
Other receivables		2,739,523		—		—		—		—
Debt securities		402,644		—		—		—		—
Deposit instruments		6,445,428		—		—		—		—

	W	30,557,117		1,334,412		2,258,218		1,234,777		4,827,407

Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	105,187		—		105,187		—		105,187
Borrowings		39,053		39,053		—		—		39,053
Derivative hedging instruments(*2)		5,835		—		5,835		—		5,835
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		6,161,177		—		—		—		—
Borrowings		25,958,314		—		26,166,994		—		26,166,994
Financial guarantee liabilities		13,916		—		—		—		—
Others		3,895,526		—		—		—		—
Other financial Liabilities		68,857		—		—		—		—

	W	36,247,865		39,053		26,278,016		—		26,317,069

(*1)	The fair values of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts.

(*2)

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

21. Financial Instruments (cont’d)

2)	Finance income and costs by category of financial instrument for each of the six-month periods ended June 30, 2025 and 2024 are as follows:

①

For the six-month period ended June 30, 2025


(in millions of Won)	Finance income and costs
	Interest income (expense)			Loss on valuation			Gain and loss on foreign currency			Gain and loss on disposal			Others			Total			Other comprehensive income (loss)
Financial assets at fair value through profit or loss	W	—			(745	)		—			27,981			1,282			28,518			—
Derivative assets		—			(234,893	)		—			141,784			—			(93,109	)		—
Financial assets at fair value through other comprehensive income		—			—			—			—			27,487			27,487			14,111
Financial assets measured at amortized cost		252,225			—			(447,731	)		(40,949	)		(3,983	)		(240,438	)		—
Financial liabilities at fair value through profit or loss		—			(1,003	)		—			—			—			(1,003	)		—
Derivative liabilities		—			(237,140	)		—			(227,318	)		—			(464,458	)		(259	)
Financial liabilities measured at amortized cost		(525,259	)		—			816,965			—			(19,231	)		272,475			—

	W	(273,034	)		(473,781	)		369,234			(98,502	)		5,555			(470,528	)		13,852

②

For the six-month period ended June 30, 2024


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain on valuation		Gain and loss on foreign currency			Gain and loss on disposal			Others			Total			Other comprehensive loss
Financial assets at fair value through profit or loss	W	—			99,499		—			59,230			327			159,056			—
Derivative assets		—			409,145		—			127,890			—			537,035			—
Financial assets at fair value through other comprehensive income		—			—		—			—			22,887			22,887			(76,947	)
Financial assets measured at amortized cost		301,735			—		611,299			(38,349	)		(7,124	)		867,561			—
Financial liabilities at fair value through profit or loss		—			234,218		(74,475	)		—			—			159,743			—
Derivative liabilities		—			42,523		—			(125,997	)		—			(83,474	)		(22	)
Financial liabilities measured at amortized cost		(519,012	)		—		(1,018,174	)		—			(14,671	)		(1,551,857	)		—

	W	(217,277	)		785,385		(481,350	)		22,774			1,419			110,951			(76,969	)

(b)	Financial risk management

The Group is exposed to credit risk, liquidity risk and market risk arising from financial assets and liabilities. The Group’s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as of and for the year ended December 31, 2024.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

22. Share Capital and Capital Surplus

(a)	Details of share capital as of June 30, 2025 and December 31, 2024 are as follows:


(Share, in Won)	June 30, 2025		December 31, 2024
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(*1,2)		80,932,952		82,624,377
Share capital(*3)	W	482,403,125,000		482,403,125,000

(*1)	As of June 30, 2025, total number of American Depository Receipts (ADRs) outstanding in overseas stock market amounts to 7,986,828 and such ADRs are equivalent to 1,996,707 shares of common stock.

(*2)	Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2025, the Company decided to retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2025. As a result, as of June 30, 2025, the Company’s total number of issued shares has decreased.

(*3)	As of June 30, 2025, the difference between the ending balance of common stock and the aggregate par value of issued common stock is W77,738 million due to retirement of 15,547,673 treasury stocks.

(b)	Details of capital surplus as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Share premium	W	463,825		463,825
Gain on disposal of treasury shares		808,994		808,994
Other capital surplus		332,686		376,075

	W	1,605,505		1,648,894

23. Other components of equity

Details of other components of equity as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Capital adjustment arising from investments in equity-accounted investees	W	(135,168	)		76,870
Changes in fair value of equity investments at fair value through other comprehensive income		32,983			20,066
Foreign currency translation differences		416,247			983,071
Losses on valuation of derivatives		(1,184	)		(925	)
Others		76,347			76,347

	W	389,225			1,155,429

24. Treasury Shares

Based on the Board of Directors’ resolution, the Group holds treasury shares for business purposes including price stabilization. Changes in treasury shares for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:


(shares, in millions of Won)	June 30, 2025						December 31, 2024
(shares, in millions of Won)	Number of shares			Amount			Number of shares			Amount
Beginning		7,003,598		W	1,550,862			8,695,023		W	1,889,658
Acquisition of treasury shares		—			—			255,428			92,311
Retirement of teasury shares		(1,691,425	)		(374,545	)		(1,946,853	)		(431,107	)

Ending		5,312,173		W	1,176,317			7,003,598		W	1,550,862

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

25. Revenue

(a)	Disaggregation of revenue

Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the six-month periods ended June 30, 2025 and 2024 are as follows:

①

For the six-month period ended June 30, 2025


(in millions of Won)			Infrastructure
	Steel		Trading		Construction		Logistics and others		Rechargeable battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	18,190,227		10,862,377		—		1,855		1,069,670		—		30,124,129
Revenue from services		420,331		1,212,207		62,740		112,023		399		6,618		1,814,318
Revenue from construction contract		—		—		2,887,572		—		22,161		—		2,909,733
Others		84,693		2,423		5,506		22,997		—		28,564		144,183

	W	18,695,251		12,077,007		2,955,818		136,875		1,092,230		35,182		34,992,363

Timing of revenue recognition
Revenue recognized at a point in time	W	18,274,920		10,864,800		108,433		24,852		1,069,670		28,564		30,371,239
Revenue recognized over time		420,331		1,212,207		2,847,385		112,023		22,560		6,618		4,621,124

	W	18,695,251		12,077,007		2,955,818		136,875		1,092,230		35,182		34,992,363

②

For the six-month period ended June 30, 2024


(in millions of Won)			Infrastructure
	Steel		Trading		Construction		Logistics and others		Rechargeable battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	19,131,314		9,648,714		—		5,026		1,591,368		—		30,376,422
Revenue from services		432,743		1,588,599		58,063		165,983		2,516		4,790		2,252,694
Revenue from construction contract		—		—		3,758,839		—		13,608		—		3,772,447
Others		92,494		3,088		8,825		22,305		—		33,356		160,068

	W	19,656,551		11,240,401		3,825,727		193,314		1,607,492		38,146		36,561,631

Timing of revenue recognition
Revenue recognized at a point in time	W	19,223,808		9,651,802		189,927		27,331		1,591,368		33,356		30,717,592
Revenue recognized over time		432,743		1,588,599		3,635,800		165,983		16,124		4,790		5,844,039

	W	19,656,551		11,240,401		3,825,727		193,314		1,607,492		38,146		36,561,631

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the three-month periods ended June 30, 2025 and 2024 are as follows:

①

For the three-month period ended June 30, 2025


(in millions of Won)			Green Infrastructure						Rechargeable battery materials
	Steel		Trading		Construction		Logistics and others		Rechargeable battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	9,060,502		5,591,325		—		—		452,627		—		15,104,454
Revenue from services		196,918		628,479		36,129		28,819		399		1,673		892,417
Revenue from construction contract		—		—		1,445,177		—		18,020		—		1,463,197
Others		52,585		837		4,567		12,144		—		25,386		95,519

	W	9,310,005		6,220,641		1,485,873		40,963		471,046		27,059		17,555,587

Timing of revenue recognition
Revenue recognized at a point in time	W	9,113,087		5,592,162		97,664		12,144		452,627		25,386		15,293,070
Revenue recognized over time		196,918		628,479		1,388,209		28,819		18,419		1,673		2,262,517

	W	9,310,005		6,220,641		1,485,873		40,963		471,046		27,059		17,555,587

②

For the three-month period ended June 30, 2024


(in millions of Won)			Green Infrastructure						Rechargeable battery materials
	Steel		Trading		Construction		Logistics and others		Rechargeable battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	9,540,165		5,016,381		—		1,500		693,977		—		15,252,023
Revenue from services		196,881		889,025		32,805		82,350		639		900		1,202,600
Revenue from construction contract		—		—		1,944,860		—		6,516		—		1,951,376
Others		58,729		1,227		5,187		11,894		—		26,645		103,682

	W	9,795,775		5,906,633		1,982,852		95,744		701,132		27,545		18,509,681

Timing of revenue recognition
Revenue recognized at a point in time	W	9,598,894		5,017,608		177,848		13,394		693,977		26,645		15,528,366
Revenue recognized over time		196,881		889,025		1,805,004		82,350		7,155		900		2,981,315

	W	9,795,775		5,906,633		1,982,852		95,744		701,132		27,545		18,509,681

(b)	Details of contract assets and liabilities from contracts with customers as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Receivables
Trade accounts and notes receivable	W	9,557,255		9,374,218
Contract assets
Due from customers for contract work		1,565,417		1,475,180
Contract liabilities
Advance received		392,070		256,522
Due to customers for contract work		471,907		491,495
Unearned revenue		121,426		89,807

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

26. Contract under Input Method

(a)	Details of outstanding contracts as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025						December 31, 2024
	Construction segment			Others			Construction segment			Others
Accumulated cost	W	20,939,956			295,965			27,830,242			262,814
Accumulated contract profit		1,248,116			46,966			1,903,582			43,690
Accumulated contract loss		(519,983	)		(11,708	)		(707,167	)		(1,930	)
Accumulated contract revenue		21,668,089			331,223			29,026,657			304,574

(b)	Details of due from customers for contract works and due to customers for contract works as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025						December 31, 2024
	Construction segment			Others			Construction segment			Others
Due from customers for contract	W	1,539,498			38,360			1,473,843			13,716
Due to customers for contract work		(467,551	)		(4,356	)		(479,546	)		(11,949	)

	W	1,071,947			34,004			994,297			1,767

(c)	Details of the provisions for construction loss as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Construction segment	W	25,557		52,492
Others		594		857

	W	26,151		53,349

(d)	For the six-month period ended June 30, 2025, the total contract revenues and the estimated total contract costs have changed and the impact of such changes on profit before income tax for the current and future periods are as follows:


(in millions of Won)						Changes in profit (loss) of contract
	Changes in total contract revenues		Changes in estimated total contract costs			Net income (loss)			Future income		Total
Construction segment	W	1,027,653		909,254			(56,975	)		175,374		118,399
Others		1,371		(2	)		1,265			108		1,373

	W	1,029,024		909,252			(55,710	)		175,482		119,772

The above details of impact on profit for the current and future periods are calculated based on the total contract costs estimated considering the events that occurred for the period from the commencement date of the contract to June 30, 2025 and the estimated total contract revenue as of June 30, 2025. The estimated total contract costs and revenue are subject to change in future periods.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

26. Contract under Input Method (cont’d)

(e)	Uncertainty of estimates

Total contract revenues

Total contract revenues are measured based on contractual amount initially agreed. However, the contract revenues can increase due to additional contract work, claims and incentive payments, or decrease due to penalty when the completion of contract is delayed due to the Group’s fault. Therefore, this measurement of contract revenues is affected by the uncertainty of the occurrence of future events.

Total contract costs

Contract revenues are recognized based on the percentage of completion, which is measured on the basis of the gross cost amount incurred to date. Total contract costs are estimated based on estimates of future material costs, labor costs, outsourcing costs. There is uncertainty in estimates on future contract costs due to various internal and external factors such as fluctuation of market, the risk of business partner and the experience of project performance and others. The significant assumptions including uncertainty of the estimate of total contract costs are as follows:


		Method of significant assumption
Material cost		Assumption based on recent purchasing price and quoted market price
Labor cost		Assumption based on standard monthly and daily labor cost
Outsourcing cost		Assumption based on the past experience rate of similar project and market price

Management reviews estimated contract costs at each reporting period end and adjusts them, if necessary.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

27. Selling and Administrative Expenses

(a)	Other administrative expenses

Other administrative expenses for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Wages and salaries	W	275,133		272,628		587,901		576,479
Expenses related to post-employment benefits		21,657		22,606		46,149		46,450
Other employee benefits		73,595		71,980		155,730		149,509
Travel		14,291		12,053		26,259		22,430
Depreciation		41,496		43,211		89,582		84,041
Amortization		28,829		29,409		57,046		56,622
Communication		2,491		2,419		6,252		6,309
Electricity		3,556		3,283		8,279		6,956
Taxes and public dues		35,241		33,594		54,623		48,831
Rental		10,939		17,293		20,622		22,058
Repairs		2,684		4,450		5,295		7,918
Entertainment		2,856		2,752		6,209		6,745
Advertising		23,977		24,962		42,214		45,314
Research & development		47,295		54,665		94,165		104,010
Service fees		77,380		72,806		130,724		126,153
Vehicles maintenance		2,047		1,963		4,195		3,971
Industry association fee		3,430		4,065		7,277		6,386
Conference		5,866		5,579		11,911		10,396
Bad debt expenses		15,339		4,164		41,201		21,903
Others		20,591		14,317		28,642		31,166

	W	708,693		698,199		1,424,276		1,383,647

(b)	Selling expenses

Selling expenses for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Freight and custody expenses	W	5,781		7,822		10,968		13,902
Operating expenses for distribution center		191		354		374		619
Sales commissions		21,451		19,703		39,374		41,757
Sales advertising		308		239		402		439
Sales promotion		2,506		2,464		5,053		5,207
Sample		595		557		1,332		1,125
Sales insurance premium		9,138		7,444		18,625		15,683
Contract cost		25,559		4,208		37,554		22,074
Others		3,961		2,008		7,662		4,355

	W	69,490		44,799		121,344		105,161

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

28. Finance Income and Costs

Details of finance income and costs for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30					For the six-month periods ended June 30
	2025			2024		2025		2024
Finance income
Interest income	W	126,553			129,299		252,225		301,735
Dividend income		11,529			5,004		28,769		23,214
Gain on foreign currency transactions		376,226			327,981		633,555		632,824
Gain on foreign currency translations		692,583			162,429		924,274		464,956
Gain on derivatives transactions		89,475			65,659		153,703		143,833
Gain on valuations of derivatives		(56,214	)		214,933		23,934		515,281
Gain on disposals of financial assets at fair value through profit of loss		15,083			49,440		31,317		74,727
Gain on valuations of financial assets at fair value through profit or loss		5,155			41,331		15,806		126,637
Gain on valuations of financial liabilities at fair value through profit or loss		—			90,217		—		234,218
Others		3,662			1,729		5,148		4,898

	W	1,264,052			1,088,022		2,068,731		2,522,323

Finance costs
Interest expenses	W	262,903			272,211		525,259		519,012
Loss on foreign currency transactions		435,025			287,728		708,746		553,796
Loss on foreign currency translations		264,680			439,002		479,849		1,025,334
Loss on derivatives transactions		118,010			81,395		239,237		141,940
Loss on valuation of derivatives		464,676			16,714		495,967		63,613
Loss on disposal of trade accounts and notes receivable 20,930					20,920		40,949		38,349
Loss on disposals of financial assets at fair value through profit or loss		2,435			2,603		3,336		15,497
Loss on valuations of financial assets at fair value through profit or loss		9,458			14,265		16,551		27,138
Loss on valuations of financial liabilities at fair value through profit or loss		922			—		1,003		—
Others		12,059			18,352		28,362		26,693

	W	1,591,098			1,153,190		2,539,259		2,411,372

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

29. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30						For the six-month periods ended June 30
	2025			2024			2025		2024
Other non-operating income
Recovery of other bad debt expenses	W	1,304			1,369			1,649		3,691
Gain on disposals of investment in subsidiaries, associates and joint ventures		(474	)		7,078			24,973		7,096
Gain on disposals of property, plant and equipment		19,855			6,053			22,018		12,050
Gain on disposal of assets held for sale		—			—			52,148		—
Gain on valuation of firm commitment		9,049			17,876			18,655		31,323
Reversal of other provisions		3,608			(219	)		7,427		2,240
Gain on disposals of emission rights		—			10,373			4		13,343
Others		17,315			26,737			56,647		56,953

	W	50,657			69,267			183,521		126,696

Other non-operating expenses
Other bad debt expenses	W	13,490			752			13,490		11,599
Loss on disposals of investments in subsidiaries, associates and joint ventures		556			42,574			752		42,594
Loss on disposals of property, plant and equipment		39,760			22,975			53,034		36,340
Impairment loss on property, plant and equipment		65,579			22,491			113,159		63,122
Impairment loss on intangible assets		25,667			—			25,678		11
Loss on disposal of assets held for sale		653			3,590			653		34,812
Loss on valuation of firm commitment		17,873			17,835			20,320		19,144
Donations		10,327			11,938			31,850		35,071
Idle tangible asset expenses		1,165			875			2,486		2,341
Increase to provisions		3,338			4,114			4,643		7,193
Others		12,209			5,791			37,702		42,586

	W	190,617			132,935			303,767		294,813

30. Expenses by Nature

Expenses that are recorded by nature as cost of sales, selling and administrative expenses, impairment loss on other receivables and other non-operating expenses in the statements of comprehensive income for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows (excluding finance costs and income tax expense):


(in millions of Won)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Raw material used, changes in inventories and others	W	8,945,921		10,021,927		19,453,869		20,487,292
Employee benefits expenses		1,206,538		1,205,676		2,472,507		2,416,870
Outsourced processing cost		2,288,309		2,772,605		4,325,967		5,322,194
Electricity and water expenses		313,885		260,632		677,904		583,210
Depreciation(*1)		908,471		807,197		1,818,192		1,688,062
Amortization		108,297		113,920		221,053		236,561
Freight and custody expenses		805,253		569,508		1,367,470		1,243,976
Sales commissions		21,451		19,703		39,374		41,757
Loss on disposal of property, plant and equipment		39,760		22,975		53,034		36,340
Impairment loss on property, plant and equipment		65,579		22,491		113,159		63,122
Impariment loss on intangible assets		25,667		—		25,678		11
Donations		10,327		11,937		31,850		35,071
Other expenses		2,399,574		2,062,045		3,520,460		3,366,956

	W	17,139,032		17,890,616		34,120,517		35,521,422

(*1)	Including depreciation of investment property.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

31. Income Taxes

The effective tax rates of the Group for each of the six-month periods ended June 30, 2025 and 2024 are 41.96% and 20.52%, respectively.

(a)	Application of the Consolidated Tax Payment System

In 2025, the Group has applied the consolidated tax payment system, under which a controlling company and its domestic subsidiaries, if economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is responsible for filing and paying the corporate income tax on behalf of the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.

Domestic and foreign subsidiaries that are not included in the consolidated tax payment system calculate and pay corporate income tax based on each legal entity as a separate tax unit.

Deferred tax assets and deferred tax liabilities of entities included in the consolidated tax payment system are offset when the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same tax authority and there is an intention to settle them on a net basis.

(b)	Global minimum tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the controlling company is domiciled, which is effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the six-month period ended June 30, 2025 as it is subject to global minimum tax under the OECD’s Pillar Two Model Rules. The Group reviewed subsidiaries qualifying as taxpayers, including the controlling company and, as a result, did not recognize any income tax expense for the six-month period ended June 30, 2025 as the impact of the global minimum tax on the consolidated financial statements as of June 30, 2025 would not be significant. Furthermore, the Group applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes. Accordingly, it did not recognize deferred tax assets and liabilities related to the global minimum tax and does not disclose information related to deferred income tax.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

32. Earnings per Share

(a)	Basic earnings per share for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in Won, except per share information)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Profit attributable to controlling interest	W	159,865,185,533		529,933,233,564		462,160,578,704		1,070,648,510,509
Weighted-average number of common shares outstanding(*1)		75,620,779		75,876,207		75,620,779		75,876,207
Basic earnings per share	W	2,114		6,984		6,112		14,110

(*1)	The weighted-average number of common shares used to calculate basic earnings per share is as follows:


(shares)	For the three-month periods ended June 30						For the six-month periods ended June 30
	2025			2024			2025			2024
Total number of common shares issued		80,932,952			84,571,230			81,773,992			84,571,230
Weighted-average number of treasury shares		(5,312,173	)		(8,695,023	)		(6,153,213	)		(8,695,023	)

Weighted-average number of common shares outstanding		75,620,779			75,876,207			75,620,779			75,876,207

The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of June 30, 2025. The diluted earnings per share for the six-month period ended June 30, 2024 is the same as the basic earnings per share due to the anti-dilutive effect.

(b)	Diluted earnings per share for the three-month and six-month period ended June 30, 2024 are calculated as follows:


(in Won, except share information)	For the three-month period ended June 30, 2024			For the six-month period ended June 30, 2024
Profit attributable to controlling interest	W	529,933,233,564			1,070,648,510,509
Loss on revaluation of exchangeable bonds considering exchange rates		(42,639,885,285	)		(130,478,878,909	)
Adjusted weighted-average number of common shares outstanding(*1)		79,144,249			79,133,915
Diluted earnings per share		6,157			11,881

(*1)	The weighted-average number of common shares outstanding used to calculate diluted earnings per share is as follows:


(shares)	For the three-month period ended June 30, 2024		For the six-month period ended June 30, 2024
Weighted-average number of common shares outstanding		75,876,207		75,876,207
Weighted-average number of potential common shares		3,268,042		3,257,708

Adjusted weighted-average number of common shares		79,144,249		79,133,915

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

33. Related Party Transactions

(a)	Related parties of the Group as of June 30, 2025 are as follows:


Type		Company
Investments in associates and joint ventures		[Domestic] POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., SNNC and others.

		[Foreign]
		Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., KOREA LNG LTD., Nickel Mining Company SAS and others.

(b)	Material transactions between the Group and the related parties for each of the six-month periods ended June 30, 2025 and 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of material		Others
*Associates and joint ventures(1)**
New Songdo International City Development, LLC	W	42,264		—		—		—		54
SNNC		48,646		—		4		355,240		2,596
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		25,818		—		—		3		—
Gunggi Green Energy		7,103		—		—		—		2,715
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		5,703		—		—		7		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		28,060		—		—		495		—
South-East Asia Gas Pipeline Company Ltd.		—		11,941		—		—		—
POSCO MC MATERIALS		69,133		3,000		—		3,400		271
Samcheok Blue Power Co., Ltd.		103,083		2,795		—		—		—
POSCO(Guangdong) Automotive Steel Co., Ltd		92,510		—		—		121,003		—
HBIS-POSCO Automotive Steel Co., Ltd		15,387		—		—		20,486		—
Roy Hill Holdings Pty Ltd		1,682		118,313		—		758,356		—
Others		106,651		73,224		594		160,614		23,350

	W	546,040		209,273		598		1,419,604		28,986

(*1)	As of June 30, 2025, the Group provides payment guarantees to the related parties (see Note 34).

For the six-month period ended June 30, 2024


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of material		Others
*Associates and joint ventures(1)**
New Songdo International City Development, LLC	W	116,952		—		1,427		—		128
SNNC		62,058		—		3		197,081		65
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		23,625		—		13		782		—
Gunggi Green Energy		17,933		—		—		—		3,155
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		6,710		—		—		—		—
POSCO SeAH Steel Wire(Nantong) Co., Ltd.		26,485		—		—		1		—
South-East Asia Gas Pipeline Company Ltd.		—		35,255		—		—		—
POSCO MC MATERIALS		57,155		1,800		—		2,608		186
Samcheok Blue Power Co., Ltd.		139,917		5,424		428		—		—
Pocheon-Hwado Highway Corp.		50,663		—		—		—		1
POSCO(Guangdong) Automotive Steel Co., Ltd		133,238		—		—		157,256		—
HBIS-POSCO Automotive Steel Co., Ltd		23,714		—		—		12,396		—
Roy Hill Holdings Pty Ltd		—		218,861		—		958,554		—
Others		48,069		75,307		3,467		81,432		54,954

	W	706,519		336,647		5,338		1,410,110		58,489

(*1)	As of June 30, 2024, the Group provides payment guarantees to the related parties (see Note 34).

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

33. Related Party Transactions (cont’d)

(c)	The balances of receivables and payables arising from significant transactions between the Group and the related parties as of June 30, 2025 and December 31, 2024 are as follows:

June 30, 2025


(in millions of Won)	*Receivables(1)**								Payables
	Trade accounts and notes receivable		Loans		Others		Total		Trade accounts and notes payable		Others		Total
Associates and joint ventures
New Songdo International City Development, LLC	W	62,696		—		1,651		64,347		—		6,373		6,373
Gunggi Green Energy		12,634		—		10,706		23,340		—		558		558
POSCO(Guangdong) Automotive Steel Co., Ltd		25,393		1,859		—		27,252		28,078		—		28,078
AMCI (WA) PTY LTD		—		136,866		—		136,866		—		—		—
HBIS-POSCO Automotive Steel Co.,Ltd		5,889		—		—		5,889		7,331		1,566		8,897
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		2,703		—		—		2,703		—		—		—
Samcheok Blue Power Co., Ltd.		187,945		—		255		188,200		—		385		385
Nickel Mining Company SAS		—		71,631		167		71,798		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		16,326		—		—		16,326		104		—		104
POSCO MC MATERIALS		14,519		—		206		14,725		977		288		1,265
Pocheon-Hwado Highway Corp.		10,985		—		—		10,985		—		2		2
UITrans LRT Co., Ltd.		—		39,333		92		39,425		—		—		—
Roy Hill Holdings Pty Ltd		44,301		—		11,083		55,384		377,099		—		377,099
SNNC		15,313		—		3,104		18,417		5,956		347		6,303
FQM Australia Holdings Pty Ltd		—		273,791		—		273,791		—		—		—
Others		44,013		19,240		127,523		190,776		49,168		88,872		138,040

	W	442,717		542,720		154,787		1,140,224		468,713		98,749		567,462

(*1) As of June 30, 2025, the Group recognizes an allowance for doubtful account for receivables above amounting to W494,749 million.

2) December 31, 2024


(in millions of Won)	*Receivables(1)**								Payables
	Trade accounts and notes receivable		Loans		Others		Total		Trade accounts and notes receivable		Others		Total
Associates and joint ventures
New Songdo International City Development, LLC	W	96,730		—		1,657		98,387		—		30,087		30,087
Gunggi Green Energy		5,846		—		10,706		16,552		—		567		567
POSCO(Guangdong) Automotive Steel Co., Ltd		46,547		6,162		—		52,709		48,866		—		48,866
AMCI (WA) PTY LTD		—		142,767		—		142,767		—		—		—
HBIS-POSCO Automotive Steel Co.,Ltd		13,924		—		—		13,924		5,483		1,922		7,405
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd		5,970		—		—		5,970		—		—		—
Samcheok Blue Power Co., Ltd.		189,173		—		148		189,321		—		77,187		77,187
Nickel Mining Company SAS		—		68,793		122		68,915		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		19,628		—		—		19,628		—		—		—
POSCO MC MATERIALS		14,544		—		168		14,712		1,314		357		1,671
Pocheon-Hwado Highway Corp.		10,985		—		—		10,985		—		—		—
UITrans LRT Co., Ltd.		13,592		51,051		9,187		73,830		—		—		—
Roy Hill Holdings Pty Ltd		25,023		—		8,836		33,859		356,234		25		356,259
SNNC		12,861		—		70		12,931		10,322		1,298		11,620
FQM Australia Holdings Pty Ltd		—		292,764		—		292,764		—		—		—
Others		27,728		19,730		138,239		185,697		10,168		10,129		20,297

	W	482,551		581,267		169,133		1,232,951		432,387		121,930		554,317

(*1)	As of December 31, 2024, the Group recognizes an allowance for doubtful account for receivables above amounting to W506,673 million.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

33. Related Party Transactions (cont’d)

(d)	Major financial transactions between the Group and the related parties for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Lend		Collect			*Others(1)**			Ending
Associates and joint ventures
UITrans LRT Co., Ltd.	W	51,051		—		(11,718	)		—			39,333
PT. Tanggamus Electric Power		3,854		—		(2,479	)		1,636			3,011
Nickel Mining Company SAS		68,793		—		—			2,838			71,631
KRAKATAU POS-CHEM DONG-SUH CHEMICAL		1,470		—		(1,427	)		(43	)		—
Hyo-chun Co., Ltd.		2,382		—		—			—			2,382
AMCI (WA) PTY LTD		142,767		68		(1,773	)		(4,196	)		136,866
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD		5,636		—		(1,378	)		(288	)		3,970
FQM Australia Holdings Pty Ltd		292,764		1,625		—			(20,598	)		273,791
POHANG E&E Co. , LTD		3,228		1,059		—			—			4,287
POSCO(Guangdong) Automotive Steel Co., Ltd.		6,162		33,457		(37,543	)		(217	)		1,859
Gale International Korea, LLC		100		170		—			—			270
P&O Chemical Co., Ltd.		3,060		—		—			(3,060	)		—
CAML		—		5,429		—			(109	)		5,320

	W	581,267		41,808		(56,318	)		(24,037	)		542,720

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

For the year ended December 31, 2024


(in millions of Won)	Beginning		Lend		Collect			*Others(1)**			Ending
Associates and joint ventures
UITrans LRT Co., Ltd.	W	46,335		4,718		—			(2	)		51,051
PT. Tanggamus Electric Power		4,826		—		(1,288	)		316			3,854
Nickel Mining Company SAS		64,197		—		—			4,596			68,793
KRAKATAU POS-CHEM DONG-SUH CHEMICAL		2,579		—		(1,379	)		270			1,470
Hyo-chun Co., Ltd.		2,382		—		—			—			2,382
AMCI (WA) PTY LTD		112,177		6,499		—			24,091			142,767
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD		5,158		—		—			478			5,636
FQM Australia Holdings Pty Ltd		256,938		3,126		—			32,700			292,764
POHANG E&E Co. , LTD		1,646		1,582		—			—			3,228
POSCO(Guangdong) Automotive Steel Co., Ltd.		14,332		59,402		(68,294	)		722			6,162
Gale International Korea, LLC		—		100		—			—			100
P&O Chemical Co., Ltd.		—		3,060		—			—			3,060

	W	510,570		78,487		(70,961	)		63,171			581,267

(*1)	Including adjusted foreign currency translation differences and others.

(e)	For each of the six-month periods ended June 30, 2025 and 2024, there were additional investments in associates and joint ventures and others amounting to W151,870 million and W163,654 million, respectively.

(f)	For each of the six-month periods ended June 30, 2025 and 2024, details of compensation to key management officers are as follows:


(in millions of Won)	June 30, 2025		June 30, 2024
Short-term benefits	W	84,577		85,415
Long-term benefits		3,086		4,878
Retirement benefits		11,787		14,934

	W	99,450		105,227

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies

(a)	Contingent liabilities

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

Management of the Group makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and assumptions are based on the evaluation of current circumstances and appraisals with the support of internal and/or external specialists.

Management of the Group regularly analyzes the most current information on contingent events and provides information regarding provisions related to contingent losses, including potential estimated legal costs. Such assessments are based on 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)	Details of guarantees

Contingent liabilities from outstanding guarantees provided by the Group as of June 30, 2025 are as follows:


(in millions of Won)			Guarantee limit					Guarantee amount
Guarantor	Guarantee beneficiary	Financial institution	Foreign currency			Won equivalent		Foreign currency		Won equivalent
[The Company]
POSCO HOLDINGS INC.	POSCO Asia Co., Ltd.	Credit Agricole and others		USD	200,000,000		271,280		—		—
	POSCO Argentina S.A.U	HSBC and others		USD	1,079,900,000		1,464,774		962,383,830		1,305,377
POSCO	POSCO-VIETNAM Co., Ltd.	Shinhan Bank and others		USD	110,000,000		149,204		30,000,000		40,692
	POSCO ASSAN TST STEELINDUSTRY Inc	Citibank and others		USD	136,500,000		185,149		122,850,000		166,634
	POSCO COATED STEEL (THAILAND)CO., LTD.	HSBC and others		THB	4,800,000,000		199,488		1,776,000,000		73,811
POSCO INTERNATIONAL Corporation	GOLDEN LACE POSCO INTERNATIONAL CO., LTD.	POSCO Asia Co., Ltd.		USD	13,200,000		17,904		11,000,000		14,920
	PT. Bio Inti Agrindo	BTPN and others		IDR	902,400,000,000		75,531		902,400,000,000		75,531
	POSCO ASSAN TST STEEL INDUSTRY	Woori Bank Hong Kong and others		USD	13,650,000		18,515		13,650,000		18,515
	POSCO INTERNATIONAL Deutschland GmbH	Bank Mendes Gans Amsterdam		USD	50,000,000		67,820		10,561,860		14,326
	POSCO INTERNATIONAL JAPAN Corp.								13,845,142		18,780
	POSCO INTERNATIONAL AMERICA Corp.								—		—
	POSCO INTERNATIONAL SINGAPORE Pte. Ltd.								—		—
	POSCO INTERNATIONAL Malaysia SDN BHD								—		—
	POSCO INTERNATIONAL ITALIA S.R.L.								—		—
	POSCO INTERNATIONAL MEXICOS.A. de C.V.								10,000,000		13,564
	POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD								—		—
	POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE C.V.								—		—
	POSCO INTERNATIONAL POLAND E-MOBILITY Sp.z.o.o								—		—
	POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD.	SC MALAYSIA		USD	5,000,000		6,782		5,000,000		6,782
	PT. KRAKATAU POSCO ENERGY	POSCO Asia Co., Ltd. and others		USD	102,903,407		139,578		35,350,000		47,949
	POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE C.V.	Export-Import Bank of Korea and others		USD	52,054,800		70,607		51,379,000		69,690
	PT POSCO INTERNATIONAL ENP INDONESIA	PT Bank Negara Indonesia		USD	750,000		1,017		750,000		1,017
	AGPA PTE. LTD.	SMBC Singapore		USD	20,880,000		28,322		20,880,000		28,322
POSCO STEELEON CO.,LTD.	Myanmar POSCO C&C Company, Limited.	POSCO Asia Co., Ltd.		USD	16,784,336		22,766		13,986,947		18,972
POSCO FUTURE M CO., LTD.	ULTIUM CAM LIMITED PARTNERSHIP	Investissement Quebec, Strategic Innovation Fund		CAD	299,562,500		296,989		232,265,400		230,270
[Associates and joint ventures]
POSCO HOLDINGS INC.	Nickel Mining Company SAS	SMBC		EUR	46,000,000		73,223		46,000,000		73,223
	PT.Nicole Metal Industry	STANDARD CHARTERED		USD	39,200,000		53,171		35,824,311		48,592
POSCO	POSUK Titanium LLP	Shinhan Bank		USD	12,750,000		17,294		12,750,000		17,294
POSCO INTERNATIONAL Corporation	GLOBAL KOMSCO Daewoo LLC	Hana Bank Bahrain		USD	6,650,000		9,020		4,900,000		6,646
POSCO Eco & Challenge Co., Ltd.	Chun-cheon Energy Co., Ltd	Kookmin Bank and others		KRW	149,200		149,200		122,170		122,170
[Others]
POSCO Eco & Challenge Co., Ltd.	Subcontractors for maintenance projects, etc.	Kookmin Bank and others		KRW	787,423		787,423		169,934		169,934
POSCO AUSTRALIA PTY LTD	Department of Trade and Investment (NSW Government) and others	Woori Bank and others		AUD	18,112,062		16,058		18,112,062		16,058
PT. Bio lnti Agrindo	KSU Mandob Sejatera	Bank Muamalat		IDR	80,000,000,000		6,696		14,666,666,666		1,228
POSCO COATED STEEL (THAILAND) CO., LTD.	AMATA NATURAL GAS DISTRIBUTION COMPANY LIMITED and others	SC Bank		THB	54,614,000		2,270		54,614,000		2,270
	BUREAU OF INDIAN STANDARDS (BIS)	SC Bank		USD	10,000		14		10,000		14
POSCO Maharashtra Steel Private Limited	Gail India and others	HSBC and others		INR	1,264,736,781		20,071		1,264,736,781		20,071

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

Details of credit enhancements by type of the Group’s PF business as of June 30, 2025 are as follows:

①

Maintenance projects and others

The information about the maturity of the loans related to PF credit enhancements such as debt acceptance and fund supplementation is as follows:


(in millions of Won)									Balance of the loans
Provider	*Projects(1)**	Borrower	Type	Credit enhancement measures	Agreed amount		Executed amount		Total		Within 3 months		3~6 months		6 months ~1 year		1 year ~2 years		2 years ~3 years		After 3 years
[The Company]
POSCO Eco & Challenge Co., Ltd.	Other projects	JB CLARK HILLS CORP	Main PF	Debt assumption		W 44,761		37,301		37,301		37,301		—		—		—		—		—
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.	Other projects	New Songdo International City Development, LLC	Mortgage loan	Debt assumption		494,000		308,900		308,900		—		—		72,300		236,600		—		—
[Others]
POSCO Eco & Challenge Co., Ltd.	Maintenance projects	Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc.	Main PF	Debt assumption		938,526		447,438		447,438		131,200		—		54,500		132,358		—		129,380
	Other projects	Civic Center PFV	Main PF	Debt assumption		45,000		45,000		45,000		—		—		—		—		—		45,000
	Other projects	LandmarkSewoon	Main PF	Debt assumption		50,000		50,000		50,000		—		—		—		—		—		50,000
	Other projects	DAON INP Co., Ltd.	Main PF	Joint guarantee		36,000		16,100		16,100		—		16,100		—		—		—		—
	Other projects	Jeonju Eco-city	Main PF	Debt assumption		53,300		22,800		22,800		—		—		—		22,800		—		—
	Other projects	Apcity HNG	Main PF	Debt assumption		10,000		10,000		10,000		—		—		10,000		—		—		—
	Other projects	ISLAND ONE CO., LTD.	Main PF	Debt assumption		50,000		50,000		50,000		—		—		—		—		50,000		—
POSCO DX	Other projects	Jeonnong school keeper co. and others(*2)	Main PF	Supplemental funding agreement		123,309		40,380		40,380		—		—		—		—		847		39,533

						1,306,135		681,718		681,718		131,200		16,100		64,500		155,158		50,847		263,913

						W1,844,896		1,027,919		1,027,919		168,501		16,100		136,800		391,758		50,847		263,913

(*1)

The maintenance project mainly consists of reconstruction and condominium construction projects, and other projects consist of constructions of office buildings, retail shops, warehouses, and educational facilities.

(*2)

The obligation to supplement funding has been included in the Group’s proportionate interests. The execution amount of the supplement funding obligation may vary depending on the fulfillment of such obligations by other construction investors or operational investors (Including other interests: guarantee limit of W1,122,320 million, outstanding loan balance of W371,034 million).

Details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant as of June 30, 2025 are as follows:


(in millions of Won)		Number of constructions		Contract amount		*Contingency amount(1)(2)*		Balance of loans
Maintenance projects	All		19	W	9,107,710		3,612,841		1,992,842
	Between the Group		19		6,654,059		2,580,097		1,302,116
Other projects	All		1		2,197,729		5,350,000		1,304,000
	Between the Group		1		2,197,729		5,350,000		1,304,000

	All		20		11,305,439		8,962,841		3,296,842
	Between the Group		20	W	8,851,788		7,930,097		2,606,116

(*1)

The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts to W24,755 million for maintenance projects.

(*2)

In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has been disclosed. However, the final execution amount of completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the completion guarantee.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

Details of contingent liability for damages in the event of non-compliance with construction completion covenant as of June 30, 2025 are as follows:


(in millions of Won)		Number of constructions		Contract amount		*Contingency amount(1)(2)*		Balance of loans
Maintenance projects	All		1	W	305,519		76,000		31,253
	Between the Group		1		305,519		76,000		31,253
Other projects	All		32		9,936,502		10,699,200		7,154,125
	Between the Group		32		9,308,405		10,395,240		6,884,523

	All		33		10,242,021		10,775,200		7,185,378
	Between the Group		33	W	9,613,924		10,471,240		6,915,776

(*1)

The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts to W171,100 million for the maintenance projects.

(*2)

②

SOC projects


(in millions of Won)
Provider	Recipient	Credit enhancement measures	Number of constructions		Approved amount	Remaining balance after repayment
[Associates and joint ventures]
POSCO DX	Pocheon-Hwado Highway Corp.(*1)	Providing funds		1	24,923		22,323
POSCO Eco & Challenge Co., Ltd.	Pocheon-Hwado Highway Corp.(*1)	Providing funds		1	319,515		286,183
	POHANG E&E Co., LTD(*2)	Providing funds and supplemental funding agreement		2	71,930		41,808
	Pureun Tongyeong Enviro Co., Ltd.(*2)	Providing funds		1	25,630		10,369
	Pure Gimpo.Co.,Ltd(*2)	Providing funds		1	51,565		22,210
	Clean Iksan Co.,Ltd(*2)	Providing funds		1	44,054		21,146

				7	537,617		404,039

[Others]
POSCO DX	Western Inland highway CO.,LTD.	Providing funds		1	47,348		32,668
POSCO Eco & Challenge Co., Ltd.	Western Seoul highway CO.,LTD. and others	Supplemental funding agreement		11	63,683		28,788
	Western Inland highway CO.,LTD. and others	Providing funds		42	2,778,848		1,541,606
	Pohang Youngil Bay New Port	Debt assumption		1	2,250		1,440
	Busan Sanseong Tunnel	Refinancing		1	35,296		26,750

				56	2,927,425		1,631,252

				63	W 3,465,042		2,035,291

(*1)

The Group provides a funding commitment of W308,506 million (including other shares: W558,079 million) equivalent to the Group’s share of the loan balance for the private investment project.

(*2)

The Group provides a funding commitment of W93,319 million (including other shares: W170,617 million) equivalent to the Group’s share of the loan balance for the private investment project.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

Other guarantees

①

As of June 30, 2025, the payment guarantees that the Group provides to clients, such as contract performance guarantees, installment guarantees, and defect guarantees, by purchasing insurance policies from guarantee insurance companies or issuing guarantee certificates are as follows:

(in millions of Won)

Provider of credit enhancement

Recipient of credit enhancement

Types of guarantees

Agreed amount

Executed amount

Guarantor

[Subsidiaries]

POSCO Eco & Challenge Co., Ltd.

Ventanas Philippines Construction Inc

Guarantee on performance
for contracts and others

W 10,589

10,589

Credit Agricole
and others

POSCO GYR Tech

POSCO

Defect liability warranty

137

CI Guarantee

10,726

[Associates and joint ventures]

POSCO Eco & Challenge Co., Ltd.

PT.Tanggamus Electric Power

Letter of credit

2,767

Hana Bank

PT. Wampu Electric Power

Letter of credit

2,442

Hana Bank

5,209

[Others]

POSCO Eco & Challenge Co., Ltd.

DAEWOO ENGINEERING
& CONSTRUCTION Co., Ltd

Guarantee on performance
for construction

9,682,535

8,748,885

Construction
Guarantee
Cooperative

POSCO WIDE Co., Ltd

Human Eco-Land Co., Ltd.

Guarantee on performance
and others

3,050

Seoul
Guarantee
Insurance

POSCO GYR Tech

KEPCO Plant Service & Engineering Co., Ltd.

Defect liability warranty

CI Guarantee

9,685,656

8,752,006

W 9,701,591

8,767,941

②

As of June 30, 2025, the primary payment guarantees and other guarantees that the Group is provided from the guarantee institution are as follows:


(in millions of Won)
Provider	Types of guarantees	Agreed amount		Executed amount
Construction Guarantee Cooperative	Subcontractor Payment Guarantee and others	W	4,637,056		4,637,056
Engineering guarantee insurance	Guarantee on performance for EPC contracts and others		913,756		694,482
Seoul Guarantee Insurance	Construction performance guarantee and others		561,773		561,773
Korea Housing & Urban Guarantee Corporation	Housing Guarantee and others		5,103,989		5,098,302
Woori Bank and others	Foreign currency guarantee		1,886,928		772,729
Korea software financial cooperative	Guarantee on performance for contracts		122,976		122,976
Seoul Guarantee Insurance	Guarantee on performance and others		118,855		118,855
Construction Guarantee Cooperative	Guarantee on performance		32		32
CI Guarantee	Defect liability warranty		208		208

		W	13,345,573		12,006,413

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

(c)	Other commitments

Details of other commitments of the Group as of June 30, 2025 are as follows:


Company		Description

POSCO HOLDINGS INC.		As of June 30, 2025, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings, which are limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowings depends on the success of the projects.POSCO HOLDINGS INC. is not liable for the repayment of full or part of the amount borrowed if the respective projects fail. POSCO HOLDINGS INC. has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements.As of June 30, 2025, the ending balance of the borrowing amounts to USD 1.02 million.

		POSCO HOLDINGS INC. has deposited 85,083 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of June 30, 2025.

POSCO		POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts provide for periodic price adjustments based on the market price. As of June 30, 2025, 64 million tons of iron ore and 17 million tons of coal remained to be purchased under such long-term contracts.

		POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase contract period and volume are 550,000 tons per year for 20 years from August 2005, and 120,000 tons from September 2025 to March 2026. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.

		POSCO has a long-term service contract for the transportation of raw material. As of June 30, 2025, there are 33 vessels under contract, and the average remaining contract period is about 6 years.

		POSCO entered into an agreement with POSCO INTERNATIONAL SINGAPORE PTE LTD. to purchase 370 thousand tons of LNG annually for 15 years commencing in November 2026. The purchase price is subject to change based on changes of U.S. Natural Gas Spot Price (Henry Hub). POSCO has option of additionally extending the purchase contract by five years.

POSCO INTERNATIONAL Corporation		POSCO INTERNATIONAL Corporation operates a ship-to-ship business in which ships are chartered from ship’s owners and leased out to shippers. POSCO INTERNATIONAL Corporation has entered into a ship purchase agreement with the ship owners and the shippers, which obliges the shippers to pay the agreed amount either at the end of the contract terms or at the agreed termination and to take over the ownership of the vessel from the ship owners. Only if the shipper fails to fulfill its obligation including payment obligation for the purchase of the vessel, POSCO INTERNATIONAL Corporation is obliged to take over the ship based on the condition that the shipper’s contractual obligations and rights are transferred to POSCO INTERNATIONAL Corporation. In May 2025, the shipper purchased two of the three chartered ship, resulting in the early termination of the ship purchase agreement.

		The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC) formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation. SHERRITT INTERNATIONAL CORP., the operator, transferred a portion of the project’s interests to Sumitomo and AHL (Ambatovy Holdings Limited) in November 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy Holdings II Limited) in August 2020. KAC has the rights and obligations to the 15.33% stake held by AHL and AHL2.

POSCO Eco & Challenge Co., Ltd.		As of June 30, 2025, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO Eco & Challenge Co., Ltd. is obligated to make contributions for core capital, unqualified investment, excess expenses occurred for business, and acceleration of payment.

POSCO FUTURE M CO., LTD		In accordance with the GP Shareholders Agreement with GM Battery Raw Materials Corporation (“GM”), the Company has an obligation to make additional capital contributions to ULTIUM CAM LIMITED PARTNERSHIP. As of June 30, 2025, the remaining amount of USD 637,042 thousand is scheduled to be contributed additionally by 2026 through capital call.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

(d)	Litigation in progress

The Group is involved in 446 lawsuits aggregating to W1,204.7 billion as defendant as of June 30, 2025, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to W63.9 billion for 55 lawsuits based on its reliable estimate of outflow of resources.

(e)	Other major contingencies for the Group as of June 30, 2025 are as follows:


Company		Description

POSCO HOLDINGS INC.		POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings.

		The Company has a joint obligation with the company newly established through spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.

POSCO INTERNATIONAL Corporation		As of June 30, 2025, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 15 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and others.

POSCO Eco & Challenge Co., Ltd.		As of June 30, 2025, POSCO Eco & Challenge Co., Ltd. has provided 38 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.

POSCO DX		As of June 30, 2025, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.

35. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	June 30, 2025			June 30, 2024
Trade accounts and notes receivable	W	(1,000,685	)		(71,203	)
Other receivables		214,898			(28,163	)
Inventories		1,541,145			511,035
Other current assets		(97,333	)		(85,752	)
Other non-current assets		(57,196	)		8,506
Trade accounts and notes payable		(598,158	)		(417,073	)
Other payables		(243,815	)		(99,670	)
Other current liabilities		171,368			(3,409	)
Provisions		(62,255	)		(75,432	)
Usable and profitable donation assets		—			101,557
Payments of severance benefits		(210,762	)		(211,028	)
Plan assets		210,154			107,555
Other non-current liabilities		177			(9,575	)

	W	(132,462	)		(272,652	)

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

36. Operating Segments

(a)

The Group’s operating businesses are organized based on the nature of markets and customers. Operating segments were re-categorized according to the revised reporting materials provided to the management for decision-making. Meanwhile, the Group has restated the information of the reporting segments from the previous quarter in accordance with the changes in the operating segments.

Segment assets, liabilities and profit (loss) are generally measured based on separate financial statements in accordance with KIFRS of the subsidiaries that constitute reportable operating segments.

Meanwhile, the Group has classified the business segment, and the subsidiaries in each segments are as follows:


Operating segments		Main Business
Steel		Manufacture and sales of steel products

infrastructure	Trading	Supply and purchase transactions between domestic and foreign companies, power generation, and resource development

	Construction	Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.

	Logistics and others	Logistics, network and system integration business

Secondary battery Materials		EV battery materials such as lithium, nickel, negative/cathode materials

Others		POSCO HOLDINGS. INC., Controlling company and Investment business

The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is determined in the same way as the consolidated net income determined by KIFRS. Segment assets and liabilities are determined based on separate financial statements. There are various transactions between reporting segments, including disposal of property, plant and equipment and provision of construction services.

(b)	The information about reportable segments for each of the six-month periods ended June 30, 2025 and 2024 is as follows:

For the six-month period ended June 30, 2025


			Infrastructure						Rechargeable battery materials
(in millions of Won)	Steel		Trading		Construction		Logistics and others		Rechargeable battery materials		Others		Total
External revenues		W18,695,251		12,077,007		2,955,818		136,875		1,092,230		35,182		34,992,363
Internal revenues		11,148,015		9,144,126		880,221		1,620,140		601,292		832,780		24,226,574
Inter segment revenues		7,270,608		4,188,756		839,854		1,588,554		521,484		824,197		15,233,453
Total revenues		29,843,266		21,221,133		3,836,039		1,757,015		1,693,522		867,962		59,218,937
Segment profits (loss)		578,230		201,823		(126,581)		32,120		(297,667)		628,759		1,016,684

For the six-month period ended June 30, 2024


			Infrastructure						Rechargeable battery materials
(in millions of Won)	Steel		Construction		Trading		Logistics and others		Rechargeable battery materials		Others		Total
External revenues		W19,656,551		11,240,401		3,825,727		193,314		1,607,490		38,148		36,561,631
Internal revenues		11,236,484		10,393,136		1,382,383		1,886,062		495,615		1,077,385		26,471,065
Inter segment revenues		7,335,342		4,756,841		1,319,861		1,873,072		479,907		1,066,528		16,831,551
Total revenues		30,893,035		21,633,537		5,208,110		2,079,376		2,103,105		1,115,534		63,032,697
Segment profits		465,810		430,258		18,095		71,514		(12,699)		1,118,847		2,091,825

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

June 30, 2025 and 2024 (Unaudited)

36. Operating Segments (cont’d)

(c)	Reconciliations of the total segment revenues, profit or loss, assets and liabilities, and other significant items to their respective consolidated financial statement line items are as follows:


(in millions of Won)	June 30, 2025			June 30, 2024
Total profit for the period	W	1,016,684			2,091,825
Fair value adjustments		(72,666	)		(34,317	)
Elimination of intra-group transactions		(515,937	)		(903,473	)
Income tax expense		309,559			298,001

Profit before income tax expense	W	737,640			1,452,036

37. Events after the reporting period

(a)	Pursuant to the resolution of the Board of Directors on August 12, 2025, the Company decided to pay interim cash dividends of W2,500 per common share (Total dividends: W189.1 billion).

(b)	On August 5, 2025, the Company’s subsidary, POSCO CNGR Nickel Solution Co., Ltd., was liquidated.

(c)

Pursuant to the resolution of the Board of Directors on May 13, 2025, POSCO FUTURE M CO., LTD, a subsidiary, decided capital increase by issuing 11,483,000 common shares. The company conducted capital increase by firstly allocating shares to the current shareholders pro rata, then proceeding with the general public offering for the remaining shares. The date of new share placement is June 17, 2025, and issued shares were listed on the Korea Exchange on August 8, 2025.

(d)	Pursuant to the resolution of the Board of Directors on July 3, 2025, the Company decided to sell the shares in two subsidiaries, POSCO (Zhangjiagang) Stainless Steel Co., Ltd and Qingdao Pohang Stainless Steel Co., Ltd.

(e)	POSCO INTERNATIONAL Corporation, a subsidiary, resolved at its Board of Directors meeting on July 31, 2025, to sell the shares of eSteel4U, its subsidiary, to POSCO to enhance management efficiency.

38. Uncertainty in Estimates Due to Imposition of Tariffs by the United States

In June 2025, the U.S. government announced an executive order imposing a 50% tariff on all steel and aluminum products, effective from June 4, 2025. This tariff imposition introduces uncertainty in the estimation of financial statements.

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the six-month periods ended June 30, 2025 and 2024

with the independent auditor’s review report

Table of Contents


	Page
Report on review of interim condensed separate financial statements		1

Interim condensed separate financial statements

Interim condensed separate statements of financial position		4

Interim condensed separate statements of comprehensive income		6

Interim condensed separate statements of changes in equity		7

Interim condensed separate statements of cash flows		8

Notes to the interim condensed separate financial statements		10

LOGO

Report on review of interim condensed separate financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCO HOLDINGS INC.

We have reviewed the accompanying interim condensed separate financial statements of POSCO HOLDINGS INC. (the “Company”), which comprise the interim condensed separate statement of financial position as of June 30, 2025 and the related interim condensed separate statements of comprehensive income for each of the three-month and six-month periods ended June 30, 2025 and 2024, interim condensed separate statements of changes in equity and interim condensed separate statements of cash flows for each of the six-month periods ended June 30, 2025 and 2024, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim condensed separate financial statements

Management is responsible for the preparation and presentation of these interim condensed separate financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim condensed separate financial statements based on our review.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed separate financial statements are not prepared, in all material respects, in accordance with KIFRS 1034 Interim Financial Reporting.

Other matters

We have audited the separate statement of financial position of the Company as of December 31, 2024, and the related separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 12, 2025 expressed an unqualified opinion thereon. The accompanying separate statement of financial position of the Company as of December 31, 2024, presented for comparative purposes, is not different from the above audited separate statement of financial position.

August 14, 2025

This review report is effective as of August 14, 2025, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim condensed separate financial statements and may result in modification to this review report.

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the six-month periods ended June 30, 2025 and 2024

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

Ju tae, Lee

Representative Director & President

POSCO HODINGS INC.

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position

as of June 30, 2025 (Unaudited) and December 31, 2024


(in millions of Won)	Notes	June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents	19,32	W	523,188		409,387
Trade accounts and notes receivable, net	4,19,30,32		156,608		178,822
Other receivables, net	5,19,30,32		271,273		21,388
Other short-term financial assets	6,19,32		3,463,408		2,686,420
Assets held for sale	7		402,860		467,796
Current income tax assets	28		—		27,940
Other current assets	12		2,402		1,716

Total current assets			4,819,739		3,793,469

Other receivables, net	5,19,30		19,715		14,894
Other long-term financial assets	6,19		419,329		421,822
Investments in subsidiaries, associates and joint ventures	8		45,915,675		45,631,965
Investment property, net	9		323,190		328,372
Property, plant and equipment, net	10		533,840		415,993
Intangible assets, net	11		23,154		21,461
Other non-current assets	12		13,037		5,821

Total non-current assets			47,247,940		46,840,328

Total assets		W	52,067,679		50,633,797

(continued)

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position, continued

as of June 30, 2025 (Unaudited) and December 31, 2024


(in millions of Won)	Notes		June 30, 2025			December 31, 2024
Liabilities
Short-term borrowings and current portion of long-term borrowings		13,19	W	41,709			39,053
Other current payables		13,30		71,999			50,356
Other short-term financial liabilities		15,19		21,092			18,302
Provisions		16		41,561			46,268
Current income tax liabilities		28		222,431			—
Other current liabilities		18		10,353			8,852

Total current liabilities				409,145			162,831

Long-term borrowings, excluding current portion		13		940,135			1,500
Other non-current payables		14,19,30		34,488			30,783
Other long-term financial liabilities		15,19		36,216			—
Defined benefit liabilities, net		17		4,282			1,296
Deferred tax liabilities		28		2,239,490			2,246,030
Long-term provisions		16		5,995			—
Other non-current liabilities		18		1,900			2,327

Total non-current liabilities				3,262,506			2,281,936

Total liabilities				3,671,651			2,444,767

Equity
Share capital		20		482,403			482,403
Capital surplus		20		1,367,990			1,367,990
Accumulated other comprehensive income (loss)		21		(112,368	)		(62,645	)
Treasury shares		22		(1,176,317	)		(1,550,862	)
Retained earnings				47,834,320			47,952,144

Total equity				48,396,028			48,189,030

Total liabilities and equity			W	52,067,679			50,633,797

The accompanying notes are an integral part of the interim condensed separate financial statements

POSCO HOLDINGS INC.

Interim condensed separate statements of comprehensive income

for each of the three-month and six-month periods

ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won, except per share informations)		For the three-month period ended June 30 (Unaudited)						For the six-month period ended June 30 (Unaudited)
	Notes	2025			2024			2025			2024
Operating revenue	24,30	W	154,768			159,861			819,465			1,058,598
Operating expenses	24		(112,328	)		(103,847	)		(202,644	)		(189,509	)

Operating profit			42,440			56,014			616,821			869,089

Finance income and costs
Finance income	19,25		95,863			156,283			127,579			365,708
Finance costs	19,25		(80,449	)		(43,304	)		(84,734	)		(84,884	)
Other non-operating income and expenses
Other non-operating income	26		1,031			1,397			1,947			1,567
Other non-operating expenses	26		(12,871	)		(4,584	)		(14,395	)		(5,270	)

Profit before income tax			46,014			165,806			647,218			1,146,210
Income tax benefit (expense)	28		132			26,433			(12,315	)		(12,633	)

Profit			46,146			192,239			634,903			1,133,577
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	17		(88	)		(196	)		(78	)		(232	)
Net changes in fair value of equity investments at fair value through other comprehensive income	6,21		(97,200	)		(47,855	)		(49,723	)		(66,576	)

Total comprehensive income (loss)		W	(51,142	)		144,188			585,102			1,066,769

Earnings per share (in Won)	29
Basic earnings per share (in Won)			610			2,534			8,396			14,940
Diluted earnings per share (in Won)		W	610			1,890			8,396			12,676

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

POSCO HOLDINGS INC.

Interim condensed separate statements of changes in equity

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(In millions of Won)	Share capital		Capital surplus			Accumulated Other Comprehensive Income (loss)			Treasury shares			Retained earnings			Total
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 for the period		—		—			—			—			1,133,578			1,133,578
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(232	)		(232	)
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			(84,732	)		—			18,156			(66,576	)
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,691	)		(189,691	)
Interim dividends		—		—			—			—			(189,691	)		(189,691	)
Share-based payment		—		(2,567	)		—			—			—			(2,567	)

Balance as of June 30, 2024 (Unaudited)	W	482,403		1,367,990			(54,054	)		(1,889,658	)		48,278,005			48,184,686

Balance as of January 1, 2025	W	482,403		1,367,990			(62,645	)		(1,550,862	)		47,952,144			48,189,030
Comprehensive Income:
Profit for the period		—		—			—			—			634,903			634,903
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(78	)		(78	)
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			(49,723	)		—			—			(49,723	)
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,052	)		(189,052	)
Interim dividends		—		—			—			—			(189,052	)		(189,052	)
Retirement of treasury shares		—		—			—			374,545			(374,545	)		—

Balance as of June 30, 2025 (Unaudited)	W	482,403		1,367,990			(112,368	)		(1,176,317	)		47,834,320			48,396,028

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

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	June 30, 2025			June 30, 2024
Cash flows from operating activities
Profit for the period	W	634.903			1,133,578
Adjustments for :
Expenses related to post-employment benefit		5,126			3,551
Depreciation		8,240			6,813
Amortization		1,061			848
Impairment loss (reversal) on other receivables		(33	)		106
Finance income		(112,381	)		(362,670	)
Dividend income		(728,223	)		(964,715	)
Finance costs		58,189			84,181
Loss on disposal of property, plant and equipment		735			—
Gain on disposal of intangible assets		—			(54	)
Loss on disposal of intangible assets		17			198
Impairment loss on investments in subsidiaries, associates and joint ventures		6,651			—
Increase to provisions		756			41
Income tax expense		12,315			12,633
Changes in operating assets and liabilities		108,327			79,333
Interest received		25,650			28,644
Dividends received		685,179			971,137
Income taxes refund (paid)		(13,412	)		57,582

Net cash provided by operating activities	W	693,100			1,051,206

(continued)

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows, continued

for each of the six-month periods ended June 30, 2025 and 2024 (Unaudited)


(in millions of Won)	June 30, 2025			June 30, 2024
Cash flows from investing activities
Decrease in deposit instruments	W	1,480,000			1,550,000
Proceeds from disposal of short-term financial instruments		858,306			2,720,749
Proceeds from disposal of equity securities		—			194,230
Proceeds from disposal of other securities		2,722			2,431
Proceeds from disposal of investments in subsidiaries, associates and joint ventures		11,382			1,758
Proceeds from disposal of intangible asstes		—			1,578
Increase in deposits		(2,520,000	)		(1,950,000	)
Acquisition of short-term financial instruments		(534,226	)		(2,003,699	)
Acquisition of short-term debt securities		(50,000	)		—
Increase in long-term loans		—			(106	)
Acquisition of other securities		(7,519	)		(11,245	)
Acquisition of investments in subsidiaries, associates and joint ventures		(301,743	)		(544,836	)
Acquisition of investment properties		—			(1,200	)
Acquisition of property, plant and equipment		(126,963	)		(120,823	)
Acquisition of intangible asstes		(2,772	)		(1,753	)
Increase in long-term lease security deposits		(475	)		(445	)

Net cash provided by investing activities	W	(1,191,288	)		(163,361	)

Cash flows from financing activities
Increase in long-term financial liabilities		3,278			3,148
Proceeds from bonds		987,117			—
Payment of cash dividends		(378,397	)		(379,767	)

Net cash provided by financing activities	W	611,998			(376,619	)

Effect of exchange rate fluctuation on cash held		(11	)		25
Net increase in cash and cash equivalents		113,799			511,251
Cash and cash equivalents at beginning of the period		409,388			376,915

Cash and cash equivalents at end of the period	W	523,187			888,166

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

June 30, 2025 and 2024 (Unaudited)

1. Reporting Entity

POSCO HOLDINGS INC. (the “Company”) was established on April 1, 1968, under the Commercial Act of the Republic of Korea. The shares of the Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business that controls and manages through ownership of shares of subsidiaries etc.

As of June 30, 2025, the shares of the Company are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

2. Basis of preparation

Statement of compliance

The interim condensed separate financial statements have been prepared in accordance with KIFRS 1034 Interim Financial Reporting, as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. The accompanying interim condensed separate financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

The interim condensed separate financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual financial statements as of December 31, 2024. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company incurred after December 31, 2024. These interim condensed separate interim financial statements do not include all of the disclosures required for full annual financial statements.

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

2. Basis of preparation (cont’d)

Use of estimates and judgments

(a)	Judgments, assumptions and estimation uncertainties

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

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

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those described in the annual financial statements as of and for the year ended December 31, 2024 except for the matters mentioned below.

(b)	Measurement of fair value

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.

Significant valuation issues are reported to the Company’s Audit Committee.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

2. Basis of preparation (cont’d)


		•		Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.

		•		Level 2 – inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly.

		•		Level 3 – inputs for the assets or liabilities that are not based on observable market data.

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

3. Summary of Material Accounting Policy Information

Except for the items described in KIFRS 1034 Interim Financial Reporting and below, the accounting policies applied by the Company in these interim condensed separate financial statements are the same as those applied to the separate financial statements as of and for the year ended December 31, 2024.

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 is not 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. When applying the amendment, the Company is not required to restate comparative information The amendments are not expected to have a material impact on the Company’s interim condensed separate financial statements.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Trade accounts and notes receivable	W	92,073		48,349
Unbilled receivables (contract assets)		64,535		130,473
Less: Allowance for doubtful accounts		—		—

	W	156,608		178,822

5. Other Receivables

Other receivables as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Current
Other accounts receivable(*1)	W	238,497			12,535
Others(*2)		36,881			13,301
Less: Allowance for doubtful accounts(*2)		(4,105	)		(4,448	)

	W	271,273			21,388

Non-current
Loans(*2)	W	228,627			247,569
Long-term other accounts receivable		18,931			14,585
Others		784			309
Less: Allowance for doubtful accounts (*2)		(228,627	)		(247,569	)

	W	19,715			14,894

(*1)	The Company includes the amounts to be collected from each domestic subsidiary in accordance with the consolidated tax payment system.

(*2)	The Company assessed the recoverability of other receivables to FQM Australia Pty Ltd, an associate, and recognized an allowance for doubtful accounts for such other receivables from the entity.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

6. Other Financial Assets

(a)	Other financial assets as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Deposit instruments	W	3,300,000		2,260,000
Short-term financial instruments		113,408		426,420
Debt securities		50,000		—

	W	3,463,408		2,686,420

Non-current
Equity securities	W	159,037		158,761
Other securities		260,290		263,059
Deposit instruments		2		2

	W	419,329		421,822

(b)	Equity securities as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025													December 31, 2024
	Number of shares		Ownership (%)		Acquisition cost		Fair value		Net changes in fair value of equity securities			Book value		Book value
Marketable equity securities
Nippon Steel Corporation(*1)		15,698,500		1.46	W	—		—		—			—		—
CSN Mineracao S.A.		102,186,675		1.86		206,265		125,495		(80,770	)		125,495		125,219

						206,265		125,495		(80,770	)		125,495		125,219

Non-marketable equity securities
PLANTEC Co., Ltd.		18,337,912		10.99		19,437		31,560		12,123			31,560		31,560
Intellectual Discovery Co.,Ltd.		200,000		6.00		5,000		1,350		(3,650	)		1,350		1,350
Pos-HYUNDAI STEEl		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		33,542

					W	234,058		159,037		(75,021	)		159,037		158,761

(*1)	During the year ended December 31, 2024, the Company decided to dispose of the shares of Nippon Steel Corporation and classified the equity security as assets held for sale (see Note 7).

7. Assets Held for Sale

During the year ended December 31, 2024, the Company determined to sell its long-term investments in Nippon Steel Corporation and classified the equity security of W467,796 million as assets held for sale in entirety. For the six-month period ended June 30, 2025, the Company conducted the revaluation of its equity interests and deducted W64,936 million from assets held for sale.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

8. Investments in Subsidiaries, Associates and Joint ventures

(a)	Investments in subsidiaries, associates and joint ventures of as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Investment in subsidiaries	W	43,008,310		42,787,174
Investment in associates		208,129		208,129
Investment in joint ventures		2,699,236		2,636,662

	W	45,915,675		45,631,965

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

(b)	Details of subsidiaries and carrying amounts as of June 30, 2025 and December 31, 2024 are as follows:


				June 30, 2025				December 31, 2024
(in millions of Won)	Country		Principal operations	Ownership (%)		Book value		Book value
[Domestic]
POSCO		Korea	Steel, rolled products, and plates manufacturing and sales		100.00	W	29,918,622		29,918,622
POSCO INTERNATIONAL Corporation		Korea	Trading, power generation and natural resources exploration		70.71		3,740,020		3,740,020
POSCO Eco & Challenge Co., Ltd.		Korea	Engineering and construction		52.80		1,014,963		1,014,963
POSCO Venture Capital Co., Ltd.		Korea	Investment in venture companies		100.00		115,931		115,931
POSCO FUTURE M CO., LTD.		Korea	Refractory and anode/cathode material manufacturing and sales		59.72		1,395,687		1,395,687
POSCO WIDE Co., Ltd.		Korea	Business facility maintenance		100.00		308,843		308,843
POSCO DX		Korea	Computer hardware and software distribution		65.47		70,990		70,990
Busan E&E Co., Ltd.		Korea	Municipal solid waste fuel and power generation		70.00		30,148		30,148
POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd.		Korea	Lithium manufacturing and sales		82.00		478,940		314,940
POSCO LITHIUM SOLUTION		Korea	Lithium hydroxide manufacturing and sales		100.00		287,550		287,550
QSONE Co., Ltd.		Korea	Real estate rental and facility management		100.00		238,478		238,478
POSCO CNGR Nickel Solution		Korea	Nickel refining		60.00		42,868		49,520
POSCO ZT AIR SOLUTION		Korea	Manufacturing and Sales of High-Purity Rare Gases		75.10		63,481		63,481
Others							509,825		446,037

							38,216,346		37,995,210

[Foreign]
POSCO WA PTY LTD		Australia	Iron ore sales and mine development		100.00		646,574		646,574
POSCO Canada Ltd.		Canada	Coal sales		100.00		560,879		560,879
POSCO AUSTRALIA PTY LTD		Australia	Iron ore sales and mine development		100.00		330,623		330,623
POSCO (Zhangjiagang) Stainless Steel Co., Ltd.		China	Stainless steel manufacturing and sales		58.60		283,792		283,792
POSCO-China Holding Corp.		China	Holding company		100.00		593,816		593,816
POSCO America Corporation		USA	Researching and consulting		99.45		192,136		192,136
POSCO VST CO., LTD.		Vietnam	Stainless steel manufacturing and sales		95.65		66,060		66,060
POSCO Asia Co., Ltd.		Hong Kong	Activities Auxiliary to financial service		100.00		117,690		117,690
POSCO JAPAN Co., Ltd.		Japan	Steel marketing, demand development, and technology research		100.00		68,410		68,410
Qingdao Pohang Stainless Steel Co., Ltd.		China	Stainless steel manufacturing and sales		70.00		65,982		65,982
POSCO (Suzhou) Automotive Processing Center Co., Ltd.		China	Steel manufacturing and sales		90.00		62,469		62,469
POSCO AFRICA (PROPRIETARY) LIMITED		South Africa	Mine development		100.00		50,297		50,297
POSCO Argentina S.A.U.		Argentina	Mineral exploration, manufacturing and sales		100.00		1,510,551		1,510,551
Others							242,685		242,685

							4,791,964		4,791,964

						W	43,008,310		42,787,174

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

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

(c)	Details of associates and carrying amounts as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)			June 30, 2025				December 31, 2024
	Country	Principal operations	Ownership (%)		Book value		Book value
[Domestic]
POSCO JK SOLID SOLUTION CO., LTD.	Korea	Material manufacturing for rechargeable battery		40.00	W	26,025		26,025
Others						12,111		12,111

						38,136		38,136

[Foreign]
9404-5515 Quebec Inc.(*1)	Canada	Investments		12.61		156,194		156,194
Others						13,799		13,799

						169,993		169,993

					W	208,129		208,129

(*1)	As of June 30, 2025, the entity is classified as an investment in an associate since the Company has significant influence over the investee although the Company’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.

(d)	Details of joint ventures and carrying amounts as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)			June 30, 2025				December 31, 2024
	Country	Principal operations	Ownership (%)		Book value		Book value
Roy Hill Holdings Pty Ltd(*1)	Australia	Natural resources exploration		10.00	W	1,225,464		1,225,464
POSCO-NPS Niobium LLC	USA	Foreign investments in mining		50.00		364,609		364,609
KOBRASCO	Brazil	Steel materials manufacturing and sales		50.00		98,962		98,962
HBIS-POSCO Automotive Steel Co., Ltd	China	Steel manufacturing and sales		50.00		235,207		235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.	China	Steel manufacturing and sales		25.00		63,865		63,866
PT NICOLE METAL INDUSTRY	Indonesia	Nickel Smelting		49.00		604,046		541,471
Hydrogen Duqm LLC	Oman	Green Hydrogen/Ammonia product business development		44.80		6,452		6,452
Nickel Mining Company SAS(*2)	New Caledonia	Raw material manufacturing and sales		49.00		—		—
SNNC	Korea	STS material manufacturing and sales		49.00		100,631		100,631

					W	2,699,236		2,636,662

(*1)	As of June 30, 2025 and December 31, 2024, the investments in joint ventures amounting to W1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.

(*2)

As of December 31, 2024, due to continuous operating losses and a deteriorating business environment, the 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 W189,197 million, which is the difference between carrying amount and recoverable amount.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

9. Investment Property

Changes in the carrying amount of investment property for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

(a)	For the six -month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		*Depreciation(1)**			*Transfer(2)**			Ending
Land	W	216,211		—		—			(496	)		215,715
Buildings		97,752		—		(3,703	)		(498	)		93,551
Structures		14,409		—		(410	)		(75	)		13,924

	W	328,372		—		(4,113	)		(1,069	)		323,190

(*1)	The useful life and depreciation method of investment property are identical to those of property, plant and equipment.

(*2)	Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio and the purpose of use.

(b)	For the year ended December 31, 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 equipment.

(*2)	Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio and the purpose of use.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

10. Property, Plant and Equipment

Changes in the carrying amount of property, plant and equipment for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

(a)	For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			*Others(1)**			Ending
Land	W	45,151		—		—			—			496			45,647
Buildings		28,447		—		—			(989	)		499			27,957
Structures		7,338		—		(63	)		(202	)		73			7,146
Machinery and equipment		29,821		704		(624	)		(2,248	)		315			27,968
Vehicles		44		—		—			(8	)		—			36
Furniture and fixtures		12,933		2,101		—			(680	)		—			14,354
Construction-in-progress		292,259		118,788		—			—			(315	)		410,732

	W	415,993		121,593		(687	)		(4,127	)		1,068			533,840

(*1)	Presenting assets transferred from construction-in-progress to other property, plant and equipment, assets transferred from investment property and others.

(b)	For the year ended December 31, 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)	Presenting assets transferred from construction-in-progress to other property, plant and equipment, assets transferred to investment property, and other expenses.

(c)	Information on lease agreements for which the Company is a lessee is as follows:

Right-of-use assets

As of June 30, 2025 and December 31, 2024, there are no right-of-use assets listed as property, plant and equipment.

Amount recognized in profit or loss

The amounts recognized in profit or loss related to leases for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Expenses related to short-term leases	W	3,067		2,200		5,959		4,386
Expenses related to leases of low-value assets		1,269		1,159		2,915		2,608

	W	4,336		3,359		8,874		6,994

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

11. Intangible Assets

Changes in the carrying amount of intangible assets for the six-month period ended June 30, 2025 and the year ended December 31, 2025 are as follows:

(a)	For the six -month period ended June 30, 2025


(in millions of Won)	Beginning		Acquisitions		Disposals			Amortization			*Others(2)**			Ending
Intellectual property rights	W	803		—		—			(92	)		144			855
Membership(*1)		10,072		—		—			—			—			10,072
Development expense		3,461		—		—			(854	)		3,135			5,742
Construction-in-progress		6,680		2,772		(17	)		—			(3,279	)		6,156
Other intangible assets		445		—		—			(116	)		—			329

	W	21,461		2,772		(17	)		(1,062	)		—			23,154

(*1)	Estimated useful life of membership is indefinite.

(*2)	Presenting assets transferred from construction-in-progress to other intangible assets.

(b)	For the year ended December 31, 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)	Presenting assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment, and others.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

12. Other Assets

Other assets as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Advance payments	W	894		798
Prepaid expenses		1,508		918

	W	2,402		1,716

Non-current
Long-term advance payments	W	12,689		5,325
Long-term prepaid expenses		348		488
Others		—		8

	W	13,037		5,821

13. Borrowings

(a)	Borrowings as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Short-term borrowings
Exchangeable bonds	W	41,709		39,053
Long-term borrowings
Long-term borrowings	W	940,135		1,500

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

13. Borrowings (cont’d)

(b)	Current portion of debentures as of June 30, 2025 and December 31, 2024 are as follows:

(in millions of Won)

Lenders

Issuance
date

Maturity
date

Annual
interest rate (%)

June 30, 2025

December 31, 2024

Exchangeable bonds(*1)

Foreign currency
exchangeable bonds

Sep. 1, 2021

Sep. 1, 2026

—

41,709

39,053

(*1)	The Company classified the exchangeable bonds as current liabilities in consideration of the investor’s exchange right.

(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)		429,064
(Won/share)

Underlying shares		Registered common shares(treasury shares)

Exchange period		From October 12, 2021 to August 22, 2026

Adjustments for exchange price		Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.

Put option by bondholders		- In the event of a change of control of the Company

		- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)

Call option by the issuer		- Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds

		- When the outstanding balance of outstanding bonds is less than 10% of the total issuance (Clean-Up Call)

		- Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc

(*1)	Due to put option exercised by bondholders, EUR 1,038,800,000 was redeemed out the total face value of exchangeable 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 six-month period ended June 30, 2025.

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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

13. Borrowings (cont’d)

(d)	Long-term borrowings and others excluding current portion, as of June 30, 2025 and December 31, 2024 are as follows:

(in millions of Won)

Lenders

Issuance
date

Maturity
date

Annual
interest rate (%)

June 30, 2025

December 31, 2024

Foreign borrowings

KOREA ENERGY AGENCY

Dec. 27, 2011

Dec. 26, 2026

3 year
Government
bond

1,381

1,500

Bonds payable in foreign currency

Global Bonds (5 year maturity)

May. 7, 2025

May. 7, 2030

5.125%

536,609

—

Bonds payable in foreign currency

Global Bonds (10 year maturity)

May. 7, 2025

May. 7, 2030

5.750%

402,145

—

940,135

1,500

14. Other Payables

Other payables as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Current
Accounts payable	W	31,165			32,514
Accrued expenses		38,110			14,826
Dividend payable		2,724			3,016

	W	71,999			50,356

Non-current
Long-term withholdings	W	36,388			33,110
Less: Present value discount		(1,900	)		(2,327	)

	W	34,488			30,783

15. Other Financial Liabilities

Other financial liabilities as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Financial guarantee liabilities	W	21,092		18,302
Non-current
Derivative liabilities		36,216		—

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

16. Provisions

(a)	Provisions as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025				December 31, 2024
	Current		Non-current		Current		Non-current
Provision for bonus payments(*1)	W	4,850		—		4,175		—
Provision for restoration(*2)		1,550		5,995		6,932		—
Others(*3)		35,161		—		35,161		—

	W	41,561		5,995		46,268		—

(*1)	Represents the provision for bonuses with the limit of 100% of annual salaries for executives.

(*2)

Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung city, the Company recognized present values of estimated costs for recovery as provisions for restoration as of June 30, 2025 and December 31, 2024. In order to determine the estimated costs, the Company has assumed that it would use all of technologies and materials available for now to recover the land. In addition, the Company has applied discount rates of 2.89% to assess present value of these costs.

(*3)	Considering the operational circumstance of the Company’s investments in joint ventures, Nickel Mining Company SAS, the Company recognized W35,161 million of the financial guarantee liabilities the Company provided as other provisions.

(b)	Changes in provisions for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	Beginning		Increase		Utilization			Ending
Provision for bonus payments	W	4,175		4,226		(3,551	)		4,850
Provision for restoration		6,932		755		(142	)		7,545
Others		35,161		—		—			35,161

	W	46,268		4,981		(3,693	)		47,556

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

17. Employee Benefits

(a)	Defined contribution plans

The expense related to defined contribution retirement plans for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:

(in millions of Won)

For the three-month periods
ended June 30

For the six-month periods
ended June 30

2025

2024

2025

2024

Expense related to post-employment benefit plans under defined contribution plans

102

(b)	Defined benefit plans

The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Present value of funded obligations	W	39,586			39,980
Fair value of plan assets		(35,304	)		(38,684	)

Net defined benefit liabilities	W	4,282			1,296

The amounts recognized in relation to net defined benefit plan in the interim condensed separate statements of comprehensive income for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	For the three-month periods ended June 30						For the six-month periods ended June 30
	2025			2024			2025			2024
Current service costs	W	1,871			1,933			5,184			3,726
Interest costs		(29	)		(85	)		(58	)		(170	)

	W	1,842			1,848			5,126			3,556

18. Other Liabilities

Other liabilities as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current
Advances received	W	2,420		3,190
Withholdings		2,821		3,006
Unearned revenue		5,112		2,656

	W	10,353		8,852

Non-current
Unearned revenue	W	1,900		2,327

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

19. Financial Instruments

(a)	Classification and fair value of financial instruments

The carrying amount and the fair values of financial assets and financial liabilities by levels in the fair value hierarchy as of June 30, 2025 and December 31, 2024 are as follows:

①

June 30, 2025


(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	113,408		—		113,408		—		113,408
Other securities		260,290		—		—		260,290		260,290
Fair value through other comprehensive income
Equity securities		159,037		125,495		—		33,542		159,037
Assets held for sale		402,860		402,860		—		—		402,860
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		523,188		—		—		—		—
Trade accounts and notes receivable		92,073		—		—		—		—
Debt securities		50,000
Other receivables		193,498		—		—		—		—
Deposit instruments		3,300,002		—		—		—		—

	W	5,094,356		528,355		113,408		293,832		935,595

Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	36,216		—		36,216		—		36,216
Borrowings		41,709		41,709		—		—		41,709
Financial liabilities measured at amortized cost(*1)
Borrowings		940,135		—		940,135		—		940,135
Financial guarantee liabilities		21,092		—		—		—		—
Others		84,400		—		—		—		—

	W	1,123,552		41,709		976,351		—		1,018,060

(*1)	Fair value of financial assets and liabilities measured at amortized cost except for borrowings approximates their carrying amounts.

②

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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

19. Financial Instruments (cont’d)

2)	Financial liabilities were recognized in connection with financial guarantee contracts as of June 30, 2025. Details of the amount of guarantees provided are as follows:


(in millions of Won)		Guarantee limit					Guarantee amount
Guarantee beneficiary	Financial institution	Foreign currency			Won equivalent		Foreign currency		Won equivalent
Subsidiaries
POSCO ASIA COMPANY LIMITED	Credit Agricole		USD	75,000,000		101,730		—		—
	ING		USD	75,000,000		101,730		—		—
	Shinhan		USD	50,000,000		67,820		—		—
POSCO Argentina S.A.U.	BNP		USD	110,000,000		149,204		94,132,278		127,681
	CITI		USD	187,975,000		254,969		172,107,277		233,446
	Credit Agricole		USD	187,975,000		254,969		172,107,277		233,446
	HSBC		USD	187,975,000		254,969		172,107,277		233,446
	JPM		USD	187,975,000		254,969		172,107,277		233,446
	BANK OF AMERICA		USD	50,900,000		69,041		41,943,436		56,892
	KEXIM		USD	167,100,000		226,653		137,879,008		187,020
Associates and Joint ventures
NICKEL MINING COMPANY SAS	SMBC		EUR	46,000,000		73,223		46,000,000		73,223
PT.Nicole Metal Industry	STANDARDCHARTERED		USD	39,200,000		53,171		35,824,311		48,592

			USD	1,319,100,000		1,789,225		998,208,141		1,353,969
			EUR	46,000,000		73,223		46,000,000		73,223

3)	Finance income and costs by category of financial instrument for each of the six-month periods ended June 30, 2025 and 2024 are as follows:

①

For the six-month period ended June 30, 2025


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss on foreign currency			Gain on disposal		Loss on valuation			Others		Total			Other comprehensive loss
Financial assets at fair value through profit or loss	W	—			(7,408	)		8,695		(123	)		—		1,164			—
Financial assets at fair value through other comprehensive income		—			—			—		—			—		—			(49,724	)
Financial assets measured at amortized cost		49,628			(13,424	)		—		—			—		36,204			—
Financial liabilities at fair value through profit or loss		—			(1,653	)		—		(37,219	)		—		(38,872	)		—
Financial liabilities measured at amortized cost		(8,277	)		50,347			—		—			2,279		44,349			—

	W	41,351			27,862			8,695		(37,342	)		2,279		42,845			(49,724	)

②

For the six-month period ended June 30, 2024


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss on foreign currency			Gain and loss on disposal			Gain on valuation		Others		Total			Other comprehensive loss
Financial assets at fair value through profit or loss	W	—			4,990			21,771			43,472		—		70,233			—
Financial assets at fair value through other comprehensive income		—			—			(8,219	)		—		—		(8,219	)		(66,576	)
Financial assets measured at amortized cost		46,502			3,020			—			—		—		49,522			—
Financial liabilities at fair value through profit or loss		—			(64,545	)		—			234,218		—		169,673			—
Financial liabilities measured at amortized cost		(582	)		(784	)		—			—		981		(385	)		—

	W	45,920			(57,319	)		13,552			277,690		981		280,824			(66,576	)

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

20. Share Capital and Capital Surplus

(a)	Share capital as of June 30, 2025 and December 31, 2024 is as follows:


(in Won, except share information)	June 30, 2025		December 31, 2024
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(*1,2)		80,932,952		82,624,377
Share capital(*3)	W	482,403,125,000		482,403,125,000

(*1)	As of June 30, 2025, total number of American Depository Receipts (ADRs) outstanding in overseas stock market amounts to 7,896,828 and such ADRs are equivalent to 1,996,707 shares of common stock.

(*2)	Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2025, the Company decided to retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2025. As a result, as of June 30, 2025, the Company’s total number of issued shares has decreased.

(*3)	As of June 30, 2025, the difference between the ending balance of common stock and the aggregate par value of issued common stock is W77,738 million due to retirement of 15,547,673 treasury stocks.

(b)	Capital surplus as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Share premium	W	463,825			463,825
Gain on disposal of treasury shares		808,994			808,994
Gain from merger		80,627			80,627
Loss on disposal of hybrid bonds		(1,787	)		(1,787	)
Share-based payment		16,331			16,331

	W	1,367,990			1,367,990

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

21. Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025			December 31, 2024
Changes in fair value of equity investments at fair value through other comprehensive income	W	(112,368	)		(62,645	)

22. Treasury Shares

Based on the Board of Directors’ resolution, the Company holds treasury shares for business purposes including price stabilization. Changes in treasury shares for six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:


(shares, in millions of Won)	June 30, 2025						December 31, 2024
	Number of shares			Amount			Number of shares			Amount
Beginning		7,003,598		W	1,550,862			8,695,023		W	1,889,658
Acquisition of treasury shares		—			—			255,428			92,311
Retirement of treasury shares		(1,691,425	)		(374,545	)		(1,946,853	)		(431,107	)

Ending		5,312,173		W	1,176,317			7,003,598		W	1,550,862

23. Operating Revenue

(a)	Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30				For the six-month periods ended June 30
(in millions of Won)	2025		2024		2025		2024
Types of revenue
Dividend income	W	109,514		114,687		728,223		964,715
Others		45,254		45,174		91,242		93,883

	W	154,768		159,861		819,465		1,058,598

Timing of revenue recognition
Revenue recognized at a point in time	W	109,514		114,689		728,223		964,719
Revenue recognized over time		45,254		45,172		91,242		93,879

	W	154,768		159,861		819,465		1,058,598

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

23. Operating Revenue (cont’d)

(b)	Details of contract assets and liabilities from contracts with customers as of June 30, 2025 and December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Receivables
Trade accounts and notes receivable	W	92,073		48,349
Contract assets
Unbilled receivables		64,535		130,473
Contract liabilities
Advance received		2,420		3,190
Unearned income		7,012		4,983

24. Operating Expenses

Operating expenses for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30				For the six-month periods ended June 30
(in millions of Won)	2025		2024		2025		2024
Wages and salaries	W	16,433		16,253		35,353		32,582
Expenses related to post-employment benefits		2,114		1,685		5,716		3,626
Other employee benefits		3,753		4,454		8,745		9,494
Travel		2,095		1,318		3,511		2,667
Taxes and public dues		12,851		12,462		12,896		12,879
Depreciation		2,976		2,802		5,811		5,608
Amortization		608		427		1,026		804
Rental		1,904		1,268		3,820		2,644
Repairs		104		161		235		370
Advertising		6,307		5,122		10,106		10,194
Research & development		36,008		37,606		71,033		70,137
Service fees		22,858		15,848		35,933		31,026
Supplies		58		70		142		278
Vehicles maintenance		606		747		1,220		1,475
Industry association fee		725		1,638		1,872		1,737
Training		580		656		648		835
Others		2,348		1,330		4,577		3,153

	W	112,328		103,847		202,644		189,509

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

25. Finance Income and Costs

Details of finance income and costs for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30					For the six-month periods ended June 30
(in millions of Won)	2025			2024		2025		2024
Finance income
Interest income	W	27,954			26,046		49,628		46,502
Gain on foreign currency transactions		15,057			1,882		15,187		3,063
Gain on foreign currency translations		50,590			9,455		51,311		15,697
Gain on disposal of financial assets at fair value through profit or loss		860			10,768		8,695		21,771
Gain on valuation of financial assets at fair value through profit or loss		202			17,407		474		43,472
Gain on valuation of financial liabilities at fair value through profit or loss		—			90,217		—		234,218
Others		1,200			508		2,284		985

	W	95,863			156,283		127,579		365,708

Finance costs
Interest expenses	W	8,008			—		8,277		—
Loss on foreign currency transactions		25,742			501		26,540		698
Loss on foreign currency translations		10,330			42,510		12,096		75,381
Loss on valuation of derivatives		36,216			—		36,216		—
Loss on valuations of financial assets at fair value through profit or loss		(772	)		—		597		—
Loss on valuation of financial liabilities at fair value through profit or loss		922			—		1,003		—
Loss on transactions of equity securities		—			—		—		8,219
Others		3			293		5		586

	W	80,449			43,304		84,734		84,884

26. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


	For the three-month periods ended June 30				For the six-month periods ended June 30
(in millions of Won)	2025		2024		2025		2024
Other non-operating income
Reversal of impairment loss on other accounts receivables	W	33		—		33		—
Reversal of other provisions		—		—		—		54
Others		998		1,397		1,914		1,513

	W	1,031		1,397		1,947		1,567

Impairment loss on investments in subsidiaries, associates and joint ventures
Impairment loss on other accounts receivables	W	—		—		—		106
Loss on disposals of property, plant and equipment		48		—		735		—
Impairment loss on investments in subsidiaries, associates and joint ventures		6,651		—		6,651		—
Donations		5,001		—		5,501		—
Increase of other provisions		720		95		756		95
Others		451		4,489		752		5,069

	W	12,871		4,584		14,395		5,270

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

27. Expenses by Nature

Expenses that are recorded by nature as cost of sales, operating expenses and other non-operating expenses in the statements of comprehensive income for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows (excluding finance costs and income tax expenses):


	For the three-month periods ended June 30				For the six-month periods ended June 30
(in millions of Won)	2025		2024		2025		2024
Employee benefits expenses	W	27,179		25,683		60,360		53,516
Depreciation(*1)		4,238		3,407		8,240		6,813
Amortization		630		449		1,062		848
Service fees		23,483		16,154		37,675		31,814
Rental		4,477		3,492		9,022		7,459
Advertising		6,311		5,122		10,110		10,194
Impairment loss on investments in subsidiaries, associates and joint ventures		6,651		—		6,651		—
Research & development		23,088		25,945		42,712		45,070
Other expenses		29,142		28,156		41,207		39,065

	W	125,199		108,408		217,039		194,779

(*1)	Including depreciation of investment property.

28. Income Taxes

The effective tax rates of the Company for each of the six-month periods ended June 30, 2025 and 2024 are 1.9% and 1.1%, respectively.

(a)	Income taxes

The Company vertically spun off its steel business at the spin-off date on March 1, 2022. The Company’s vertical spin-off meets the requirements for qualified spin-off under the Corporate Tax Act. Accordingly, transfer gains of W8,452,339 million under the Corporate Tax Act were incurred for the net asset transferred to the newly established company (POSCO). For the transfer gain, the Company simultaneously set provision for accelerated depreciation and recognized deferred tax liabilities.

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

28. Income Taxes (cont’d)

(b)	Application of the Consolidated Tax Payment System

From the six-month period ended June 30, 2025, the Company has applied the consolidated tax payment system, under which a controlling company and its domestic subsidiaries, when economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is responsible for filing and paying the corporate income tax on behalf of the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.

The current tax assets and current tax liabilities recognized in relation to the consolidated tax payment system for the six-month period ended June 30, 2025 and the year ended December 31, 2024 are as follows:


(in millions of Won)	June 30, 2025		December 31, 2024
Current income tax assets(*1)	W	—		27,940
Current income tax liabilities(*2)		222,431		—

(*1)	Presenting the expected corporate income tax refund during the year ended December 31, 2024.

(*2)	Presenting the amount calculated and recognized by applying the consolidated tax payment system during the six-month period ended June 30, 2025.

(c)	Global minimum top-up tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, which is effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the six-month period ended June 30, 2025 as it is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. The Company reviewed subsidiaries qualifying as taxpayer, including the Company, and, as a result, did not recognize any income tax expense for the six-month period ended June 30, 2025 as the impact of the global minimum top-up tax on the separate financial statements as of June 30, 2025 would not be significant. Furthermore, the Company applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes. Accordingly, it did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

29. Earnings per Share

(a)	Basic earnings per share for each of the three-month and six-month periods ended June 30, 2025 and 2024 are as follows:


(in Won, except share information)	For the three-month periods ended June 30				For the six-month periods ended June 30
	2025		2024		2025		2024
Profit for the period	W	46,145,579,835		192,238,563,525		634,903,318,088		1,133,577,584,946
Weighted-average number of common shares outstanding(*1)		75,620,779		75,876,207		75,620,779		75,876,207
Basic earnings per share	W	610		2,534		8,396		14,940

(*1)	The weighted-average number of common shares outstanding used to calculate basic earnings per share is as follows:


(shares)	For the three-month periods ended June 30						For the six-month periods ended June 30
	2025			2024			2025			2024
Weighted-average shares outstanding		80,932,952			84,571,230			81,773,992			84,571,230
Weighted-average number of treasury shares		(5,312,173	)		(8,695,023	)		(6,153,213	)		(8,695,023	)

Weighted-average number of common shares outstanding		75,620,779			75,876,207			75,620,779			75,876,207

The Company has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of June 30, 2025 and 2024. The diluted earnings per share for the six-month period ended June 30, 2025 is the same as the basic earnings per share due to the anti-dilutive effect.

(b)	Diluted earnings per share for the three-month and six-month period ended June 30, 2024 is calculated as follows:


(in Won, except share information)	For the three-month period ended June 30, 2024			For the six-month period ended June 30, 2024
Profit for the period	W	192,238,563,525			1,133,577,584,946
loss from revaluation of and exchange rate on exchangeable bonds		(42,639,885,285	)		(130,478,878,909	)
Diluted profit for the period		149,598,678,240			1,003,098,706,037
Adjusted weighted-average number of common shares outstanding(*1)		79,144,249			79,133,915
Diluted earnings per share		1,890			12,676

(*1)	The adjusted weighted-average number of common shares outstanding used to calculate diluted earnings per share is as follows:


(shares)	For the three-month period ended June 30, 2024		For the six-month period ended June 30, 2024
Weighted-average number of common shares outstanding		75,876,207		75,876,207
Weighted-average number of potential common shares		3,268,042		3,257,708

Adjusted weighted-average number of common shares		79,144,249		79,133,915

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

30. Related Party Transactions

(a)	Related parties of the Company as of June 30, 2025 are as follows:


Type		Company
Subsidiaries		[Domestic] POSCO, POSCO Eco & Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO M-TECH, Busan E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation, POSCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION, Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd., TANCHEON E&E, POSCO IH, POSCO A&C Co., Ltd, Posco Group University, POSCO GY Solution, POSCO GYR Tech, POSCO GYS Tech, POSCO PR Tech, POSCO PS Tech, POSCO PH Solution, POSCO Humans Co.,Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd., Songdo Development PMC (Project Management Company) LLC., POSCO-GS Eco Materials Co., Ltd, Korea Fuel Cell and others. [Foreign] POSCO America Corporation, POSCO AUSTRALIA PTY LTD., POSCO Asia Co., Ltd., POSCO (Zhangjiagang) Stainless Steel Co.,Ltd., POSCO-China Holding Corporation, POSCO JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP and others.

Investments in associates and joint ventures		[Domestic] POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., SNNC, Gale International Korea, LLC, Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding Co.,Ltd., and others. [Foreign] Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG LTD., Nickel Mining Company SAS and others.

(b)	Material transactions with the related companies for each of the six-month periods ended June 30, 2025 and 2024 are as follows:

For the six-month period ended June 30, 2025


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of fixed assets		Others
*Subsidiaries(2)**
POSCO	W	79,129		332,858		—		370		7,526
POSCO Eco & Challenge Co., Ltd.		4,842		11,037		—		208		—
POSCO STEELEON CO., Ltd		593		—		—		—		—
POSCO DX		1,040		12,425		—		3,181		7,900
POSCO Research Institute		—		—		—		—		4,580
eNtoB Corporation		—		—		—		—		4,327
POSCO FUTURE M CO., LTD.		1,767		11,671		—		—		24
POSCO INTERNATIONAL Corporation		2,784		192,814		166		—		10
Busan E&E Co,. Ltd.		—		3,618		—		—		—
POSCO America Corporation		—		—		—		—		3,338
Others		678		1,606		2,165		—		9,399

		90,833		566,029		2,331		3,759		37,104

*Associates and joint ventures(2)**
POSCO-NPS Niobium LLC		—		9,896		—		—		—
Roy Hill Holdings Pty Ltd		—		94,502		—		—		—
Others		409		39,971		119		—		—

		409		144,369		119		—		—

	W	91,242		710,398		2,450		3,759		37,104

(*1)	Sales and others mainly consist of trademark usage income, rental income, and dividend income from subsidiaries, associates and joint ventures.

(*2)	As of June 30, 2025, the Company provided payment guarantees to the related parties (see Note 19).

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

30. Related Party Transactions (cont’d)

For the six-month period ended June 30, 2024


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of fixed assets		Others
*Subsidiaries(2)**
POSCO	W	74,662		589,786		—		191		6,825
POSCO Eco & Challenge Co., Ltd.		5,158		11,037		—		259		150
POSCO STEELEON CO., Ltd		619		—		—				9
POSCO DX		655		9,940		—		610		6,537
POSCO Research Institute		—		—		—		30		4,232
eNtoB Corporation		—		—		—		42		3,786
POSCO FUTURE M CO., LTD.		4,995		11,565		—		—		9
POSCO INTERNATIONAL Corporation		2,977		124,396				—		43
Busan E&E Co,. Ltd.		—		2,472		—		—		—
POSCO America Corporation		—		—		—		—		3,094
Others		2,558		328		873		1		13,615

		91,624		749,524		873		1,133		38,300

*Associates and joint ventures(2)**
POSCO-NPS Niobium LLC		—		8,041		—		—		—
Roy Hill Holdings Pty Ltd		—		175,030		—		—		—
Others		158		14,427		112		—		—

		158		197,498		112		—		—

	W	91,782		947,022		985		1,133		38,300

(*1)	Sales and others mainly consist of trademark usage income, rental income, and dividend income from subsidiaries, associates and joint ventures.

(*2)	As of June 30, 2024, the Company provided payment guarantees to the related parties (see Note 19).

(c)	The balances of receivables and payables arising from significant transactions between the Company and the related parties as of June 30, 2025 and December 31, 2024 are as follows:

June 30, 2025


(in millions of Won)	Receivables						Payables
	Trade accounts and notes receivable		Others		Total		Accounts payable		Others		Total
Subsidiaries
POSCO	W	50,882		232,026		282,908		1,156		40,485		41,641
POSCO Eco & Challenge Co., Ltd.		4,587		—		4,587		—		553		553
POSCO STEELEON CO., Ltd		573		—		573		—		—		—
POSCO DX		736		288		1,024		2,032		73		2,105
POSCO FUTURE M CO., LTD.		13,804		—		13,804		—		63		63
POSCO Mobility Solution Corporation		406		—		406		—		8		8
POSCO INTERNATIONAL Corporation		3,149		—		3,149		—		414		414
POSCO Argentina S.A.U		—		29,420		29,420		—		—		—
Others		1,727		240		1,967		3,579		3,613		7,192

		75,864		261,974		337,838		6,767		45,209		51,976

Associates and joint ventures
SNNC		320		—		320		—		—		—
Roy Hill Holdings Pty Ltd		44,301		—		44,301		—		—		—
FQM Australia Holdings Pty Ltd(*1)		—		230,275		230,275		—		—		—
Others		18,689		149		18,838		—		569		569

		63,310		230,424		293,734		—		569		569

	W	139,174		492,398		631,572		6,767		45,778		52,545

(*1)	FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest and the Company has recognized allowance for doubtful accounts for all of other receivables.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

30. Related Party Transactions (cont’d)

December 31, 2024


(in millions of Won)	Receivables						Payables
	Trade accounts and notes 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. Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables.

(d)	For each of the six-month periods ended June 30, 2025 and 2024, there were additional investments in subsidiaries and others amounting to W301,743 million and W544,836 million, respectively.

(e)	For each of the six-month periods ended June 30, 2025 and 2024, details of compensation to key management officers are as follows:


(in millions of Won)	June 30, 2025		June 30, 2024
Short-term benefits	W	13,241		12,572
Retirement benefits		3,280		1,776

	W	16,521		14,348

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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

31. Commitments and Contingencies

(a)	Commitments

As of June 30, 2025, the Company entered into commitments with KOREA ENERGY AGENCY for long-term foreign currency borrowing, which is limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowing depends on the success of the project. The Company is not liable for the repayment of full or part of the money borrowed if the respective project fails. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of June 30, 2025, the ending balance of borrowing amounts to USD 1.02 million.

The Company has deposited 85,083 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of June 30, 2025.

(b)	As of June 30, 2025, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral for long-term foreign currency borrowings.

(c)	Litigation in progress

The Company is involved in 2 lawsuits for contract payment amounting to W900 million as defendant as of June 30, 2025. However, the Company has not recognized any provisions for these litigation cases since the Company does not believe it has a present obligation as of June 30, 2025.

(d)	The Company has a joint obligation with the company newly established through spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.

(e)	As of June 30, 2025, the Company has been provided a payment guarantee of W8,887 million from Seoul Guarantee Insurance in relation to license guarantees and others.

(f)	As of June 30, 2025, the Company has entered into a credit line agreement with Woori Bank, with a limit of W20,000 million.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

June 30, 2025 and 2024 (Unaudited)

32. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the six-month periods ended June 30, 2025 and 2024 are as follows:


(in millions of Won)	June 30, 2025			June 30, 2024
Trade accounts and notes receivable	W	65,003			70,822
Other accounts receivable		32,242			16,365
Prepaid expenses		(452	)		(4,131	)
Other current assets		(96	)		(234	)
Other non-current assets		8			(5,369	)
Other accounts payable		(3,402	)		1,383
Accrued expenses		15,771			15,575
Advances received		(770	)		873
Withholdings		(184	)		(973	)
Unearned revenue		1,916			(1,167	)
Other current liabilities		532			(2,656	)
Payments of severance benefits		(6,187	)		(13,285	)
Plan assets		3,946			2,130

	W	108,327			79,333

33. Events after the reporting period

(a)	Pursuant to the resolution of the Board of Directors on August 12, 2025, the Company decided to pay interim cash dividends of W2,500 per common share (total dividends: W189.1 billion).

(b)	On August 5, 2025, the Company’s subsidary, POSCO CNGR Nickel Solution Co., Ltd. was liquidated.

(c)	Pursuant to the resolution of the Board of Directors on July 3, 2025, the Company decided to sell the shares in two subsidiaries, POSCO (Zhangjiagang) Stainless Steel Co.,Ltd and Qingdao Pohang Stainless Steel Co., Ltd.

Source: View Original Filing on SEC EDGAR

The filing reports Total assets of W101,154,820 million and equity attributable to owners of W54,570,265 million as of June 30, 2025 (unaudited).

For the six‑month period ended June 30, 2025 the filing shows consolidated sales of W17,555,587 million (unaudited).

The company discloses major programmes including KRW 85,670 hundred‑million total investment for cathode/anode and lithium commercialization facilities, with KRW 57,883 hundred‑million already invested.

Yes. The filing describes a decarbonization roadmap and plans for a HyREX hydrogen‑based steelmaking demo plant as part of achieving carbon net‑zero goals.

The filing cites global uncertainties driven by U.S. tariffs and sluggish demand in key industries (including China’s housing sector) as contributors to year‑on‑year declines in some business metrics.

Director Candidate Recommendation Committee

3 Outside Directors

YOO, Young Sook

(Chairman)

KWON, Tae-Kyun

SOHN, Sung Kyu

• Agenda

1. Qualification review of Outside Director candidates and making recommendation to the GMoS

2. Preliminary review and qualification review of Inside Director candidates

3. Prior deliberation on appointment of members of the special committees

4. Prior deliberation of the appointment of Representative Directors other than the Representative Director and CEO

5. Operation of the Outside Director Candidate Recommendation Advisory Panel

6. Other matters necessary for recommending Outside Director candidates

Evaluation and

Compensation

Committee

4 Outside Directors

KIM, Joon Gi

(Chairman)

KWON, Tae-kyun

YOO, Jin Nyong

PARK, Sung Wook

• Agenda

1. Implementation of the executive performance evaluation and compensation plan

2. Prior deliberation on the executive performance evaluation and compensation plan

3. Prior deliberation on the remuneration and retirement allowance for Directors