PKX

We are exposed to foreign exchange rate and interest rate risk primarily associated with underlying liabilities, and to changes in the commodity prices of principal raw materials. Following evaluation of these positions, we selectively enter into derivative financial instruments to manage the related risk exposures, primarily with respect to foreign exchange rate and interest rate risks, which are entered into with major financial institutions in order to minimize the risk of credit loss. Our market risk management policy determines the market risk tolerance level, measuring period, controlling responsibilities, management procedures, hedging period and hedging ratio very specifically. We also prohibit all speculative hedging transactions and evaluate and manage foreign exchange exposures to receivables and payables. None of our loss exposures related to derivative contracts are unlimited, and we do not believe that our net derivative positions could result in a material loss to our profit before income tax or total equity due to significant fluctuations of major currencies against the Korean Won. Due to the nature of our derivative contracts primarily as hedging instruments that manage foreign exchange risks, net gain or net loss on derivatives transactions and valuation of derivatives are typically offset by net loss or net gain on foreign currency transaction and translation. We recognized net gain on valuation of derivatives of Won 124 billion and net gain on derivatives transactions of Won 13 billion in 2023, net gain on valuations of derivatives of Won 790 billion and net gain on derivatives transactions of Won 120 billion in 2024 and net gain on valuations of derivatives of Won 80 billion and net loss on derivatives transactions of Won 137 billion in 2025. Exchange Rate Risk Korea is our most important market and, therefore, a substantial portion of our cash flow is denominated in Won. Most of our exports are denominated in U.S. dollars. Japan is also an important market for us, and we derive significant cash flow denominated in Yen. We are exposed to foreign exchange risk related to foreign currency-denominated liabilities and anticipated foreign exchange payments. Anticipated foreign exchange payments, which represent a substantial amount and are mostly denominated in U.S. dollars, relate primarily to imported raw material costs and freight costs. Foreign currency-denominated liabilities relate primarily to foreign currency-denominated debt. We strive to naturally offset our foreign exchange risk by matching foreign currency receivables with our foreign currency payables and our overseas subsidiaries have sought to further mitigate the adverse impact of exchange rate fluctuations by conducting business transactions in the local currency of the respective market in which the transactions occur. In particular, POSCO INTERNATIONAL’s exposure to fluctuations in exchange rates, including the Won/U.S. dollar exchange rate, is limited because trading transactions typically involve matched purchase and sale contracts, which result in limited settlement exposure, and because POSCO INTERNATIONAL’s contracts with domestic suppliers of products for export and with domestic purchasers of imported products are generally denominated in U.S. dollars. Although the impact of exchange rate fluctuations is partially mitigated by such strategies, we and our subsidiaries, particularly POSCO INTERNATIONAL and POSCO E&C, also periodically enter into derivative contracts, primarily foreign currency swaps and forward exchange contracts, to further hedge some of our foreign exchange risks. 106 Table of Contents Our foreign currency exposure and changes in gain or loss resulting from a 10% foreign exchange rate change against the Korean Won are as follows: For the Year Ended December 31, 2023 2024 2025 Increase Decrease Increase Decrease Increase Decrease (In billions of Won) U.S. dollars W (617 ) W 617 W (549 ) W 549 W (610 ) W 610 Euro (234 ) 234 14 (14 ) 17 (17 ) Japanese Yen 8 (8 ) 9 (9 ) 13 (13 ) See Note 23 to the Consolidated Financial Statements. Interest Rate Risk We are also subject to market risk exposure arising from changing interest rates. In particular, we are exposed to interest rate risk on our existing floating rate borrowings and on additional debt financings that we may periodically undertake for various reasons, including capital expenditures and refinancing of our existing borrowings. A rise in interest rates will increase the cost of our existing variable rate borrowings. If interest rates on borrowings with floating rates had been 1% higher or lower with all other variables held constant, the impact on the gain or loss of the applicable period would be as follows: For the Year Ended December 31, 2023 2024 2025 Increase Decrease Increase Decrease Increase Decrease (In billions of Won) Increase or decrease in profit and equity W (77 ) W 77 W (47 ) W 47 W (62 ) W 62 See Note 23 to the Consolidated Financial Statements. A reduction of interest rates also increases the fair value of our debt portfolio, which is primarily of a fixed interest nature. From time to time, we use, to a limited extent, interest rate swaps to reduce interest rate volatility on some of our debt and manage our interest expense by achieving a balanced mixture of floating and fixed rate debt. 107 Table of Contents The following table summarizes the carrying amounts, fair values, principal cash flows by maturity date and weighted average interest rates of our short-term and long-term liabilities as of December 31, 2025 which are sensitive to exchange rates and/or interest rates. The information is presented in Won, which is our reporting currency. Maturities December 31, 2025 2026 2027 2028 2029 2030 Thereafter Total Fair Value (In billions of Won except rates) Local currency: Fixed rate W 4,163 W 1,718 W 1,626 W 707 W 589 W 1,004 W 9,807 W 9,798 Average weighted rate (1) . 2.21% 2.13% 2.73% 2.79% 2.91% 3.07% 2.48% Variable rate 991 185 0 9 195 589 1,969 1,953 Average weighted rate (1) 4.02% 2.94% 0.00% 2.52% 4.53% 1.25% 3.13% Sub-total 5,154 1,903 1,626 716 784 1,593 11,776 11,751 Foreign currency, principally U.S. dollars and Yen: Fixed rate W 3,055 W 2,473 W 1,622 W 575 W 584 W 1,284 W 9,593 W 9,560 Average weighted rate (1) 1.83% 2.23% 0.68% 6.38% 5.25% 3.21% 2.42% Variable rate 3,945 911 703 35 801 728 7,123 7,116 Average weighted rate (1) 3.81% 3.04% 1.51% 2.51% 5.95% 5.38% 3.88% Sub-total 7,000 3.384 2,325 610 1,385 2,012 16,716 16,676 Total W 12,154 W 5,287 W 3,951 W 1,326 W 2,169 W 3,605 W 28,492 W 28,427 (1) Weighted average rates of the portfolio at the period end. Item 12. Description of Securities Other than Equity Securities Not applicable Item 12.A. Debt Securities Not applicable Item 12.B. Warrants and Rights Not applicable Item 12.C. Other Securities Not applicable

You should carefully consider the risks described below. The global economic downturn may adversely affect our business and performance. The global economic outlook for the near future remains uncertain. Our business is affected by highly cyclical market demand for our products and services. In particular, POSCO and our other subsidiaries that engage in steel production activities are affected by market demand from a number of industries, including the construction, automotive, shipbuilding and electrical appliances industries as well as downstream steel processors, which are sensitive to general conditions in the global economy. Macroeconomic factors, such as the economic growth rate, employment levels, interest rates, inflation rates, exchange rates, commodity prices, demographic trends and fiscal policies of governments can have a significant effect on such industries. From time to 2 Table of Contents time, these industries have experienced significant and sometimes prolonged downturns, which in turn have negatively impacted our steel business. Global economic conditions have deteriorated in recent years, with global financial and capital markets experiencing substantial volatility. In particular, the COVID-19 pandemic that began in late 2019 and rapid increases in interest rates globally starting in the second half of 2021 to combat inflation have materially and adversely affected the global economy and financial markets. See “— Earthquakes, tsunamis, floods, severe health epidemics (including the occurrence of widespread infectious diseases such as the global COVID-19 pandemic) and other natural calamities could materially and adversely affect our business, results of operations or financial condition.” Such uncertainties have been caused by, and continue to be exacerbated by, among other things, deterioration in economic and trade relations between major economies (particularly between the United States and China), the outbreak of the Russia-Ukraine war in February 2022 and the military conflicts between Iran and other countries, including the United States and Israel, that have destabilized the global energy sector, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America, continuing geopolitical and social instability in North Korea and various parts of the Middle East, and impositions of tariffs and other trade protective measures around the world. See “— Korea and the rest of Asia are our most important markets, and our current business and future growth could be materially and adversely affected if economic conditions in the region deteriorate.” Actual or anticipated further deterioration of global economic conditions may result in a decline in demand for our products. In the case of a prolonged decrease in demand (which may occur or be exacerbated as a result of tariffs imposed on imports into our major export markets), we may need to rationalize our production capacity and reduce fixed costs, and we will likely face pressure to reduce prices of our products. From time to time, we have adjusted our crude steel production levels and sales prices in response to sluggish demand from our customers in industries adversely impacted by the deteriorating economic conditions. We decreased our aggregate production level from 39.9 million tons in 2023 to 39.3 million tons in 2024 and to 38.6 million tons in 2025 in response to weak global economic conditions. During such periods, the weighted average unit sales price for our semi-finished and finished steel products produced by us and directly sold to external customers decreased from Won 1,272,754 per ton in 2023 to Won 1,217,705 per ton in 2024 and Won 1,159,315 per ton in 2025 primarily reflecting general deterioration of the global steel market conditions, which was partially offset by general depreciation of the Won against the U.S. dollar that increased our export prices in Won terms. Such weakening demand and a general oversupply in the market have negatively impacted our results of operations in 2024 and 2025. Our revenue decreased by 4.7%, or Won 3,597 billion, from Won 77,057 billion in 2023 to Won 73,459 billion in 2024, and our profit decreased by 45.6%, or Won 841 billion, from Won 1,846 billion in 2023 to Won 1,005 billion in 2024. Our revenue decreased by 6.1%, or Won 4,472 billion, from Won 73,459 billion in 2024 to Won 68,987 billion in 2025, and our profit decreased by 47.6%, or Won 478 billion, from Won 1,005 billion in 2024 to Won 527 billion in 2025. We expect fluctuation in demand for our steel products and trading services to continue at least in the near future. We may decide to further adjust our future crude steel production or our sales prices on an ongoing basis subject to market demand for our products, the production outlook of the global steel industry and global economic conditions in general. In addition, economic downturns in the Korean and global economies could result in market conditions characterized by weaker demand for steel products from a number of industries as well as falling prices for export and import products and reduced trade levels. Deterioration of market conditions may result in changes in assumptions underlying the carrying value of certain assets, which in turn could result in impairment of such assets, including intangible assets such as goodwill. Our ability to reduce expenditures for production facilities and research and development during an industry downturn is limited because of the need to maintain our competitive position. If we are unable to reduce our expenses sufficiently to offset reductions in 3 Table of Contents price and sales volume, our margins will suffer and our business, financial condition and results of operations may be materially and adversely affected. We operate in the highly competitive steel, trading, construction and energy industries, and our failure to successfully compete would adversely affect our market position and business. Steel Segment. Our subsidiaries that produce steel products, including POSCO, our wholly-owned subsidiary, operate in the highly competitive steel industry and face intense global competition. China is the largest steel-producing country in the world by a significant margin, with the balance between its domestic production and demand being an important factor in the determination of global steel prices. In recent years, a slowdown in domestic demand for steel products in China, resulting from slowed economic growth as well as the impact from the COVID-19 pandemic, combined with an expansion in steel production capacity, has led to production over-capacity in the Chinese steel industry, which in turn has led the Chinese government to pursue aggressive consolidation in the Chinese steel industry that has resulted in fewer but larger steel manufacturers that are able to compete more effectively in the global steel industry. Competition from such global steel manufacturers with expanded production capacity as well as competitors from emerging markets, especially from China and India, has resulted in significant price competition and may result in declining margins and reductions in revenue in the future. POSCO’s larger competitors may use their resources, which may be greater than POSCO’s, against POSCO in a variety of ways, including by making additional acquisitions, investing more aggressively in product development and capacity and displacing demand for our export products. Increased production capacity, combined with decreased demand resulting from a slowdown of the global economy, has from time to time resulted in production over-capacity in the global steel industry which in turn has resulted in downward pressure on global steel prices. In 2023, 2024 and 2025, global demand for steel products remained weak reflecting general deterioration of the global steel market conditions. Production over-capacity in the global steel industry may further intensify if global economic recovery slows or demand from developing countries, particularly from China, continues to lag behind the growth in production capacity. Production over-capacity in the global steel industry is likely to: • reduce export prices in U.S. dollar terms of our principal products, which in turn may reduce our sales prices in Korea as well; • increase competition in the Korean market as foreign producers seek to export steel products to Korea as other markets experience a slowdown; • negatively affect demand for our products abroad and our ability to expand export sales; and • affect our ability to increase steel production in general. Steel also competes with other natural and synthetic materials that may be used as steel substitutes, such as aluminum, cement, composites, glass, plastic and wood. Government regulatory initiatives mandating the use of such materials instead of steel, whether for environmental or other reasons, as well as the development of attractive alternative substitutes for steel products, may reduce demand for steel products and increase competition in the global steel industry. As part of our strategy to compete in this challenging landscape, our steel subsidiaries will continue to invest in developing innovative products that offer the greatest potential returns and enhance the overall quality of our products, as well as make additional investments in the development of new manufacturing technologies. However, there is no assurance that they will be able to continue to compete successfully in this economic environment or that the prolonged slowdown of the global economy or production over-capacity will not have a material adverse effect on our business, results of operations or financial condition. 4 Table of Contents Trading Segment of the Infrastructure Business. POSCO INTERNATIONAL Corporation (“POSCO INTERNATIONAL”), our consolidated subsidiary, competes principally with other Korean general trading companies that are affiliated with major domestic business groups, as well as global trading companies based in other countries. In the domestic market, competition for export transactions on behalf of domestic suppliers and import transactions on behalf of domestic purchasers was historically limited, as most affiliated general trading companies of large Korean business groups generally relied on affiliate transactions for the bulk of their trading business. However, many of these Korean general trading companies have reduced their reliance on their affiliated business group and transactions carried out on behalf of their member companies and instead have generally evolved to focus on segments of the import and export markets in which they have a competitive advantage. As a result, competition among Korean general trading companies in the area of traditional trade has become more intense. The overseas trading markets in which POSCO INTERNATIONAL operates are also highly competitive. POSCO INTERNATIONAL’s principal competitors in overseas trading markets include Korean trading companies that operate in various international markets, as well as foreign trading companies, particularly those based in Japan. As POSCO INTERNATIONAL diversifies into businesses other than traditional trading such as natural resources development, it also increasingly competes with other Korean and international companies involved in these businesses. Some of POSCO INTERNATIONAL’s competitors may be more experienced and have greater financial resources and pricing flexibility than POSCO INTERNATIONAL, as well as more extensive global networks and wider access to customers. There is no assurance that POSCO INTERNATIONAL will be able to continue to compete successfully in this economic environment or that the prolonged slowdown of the global economy will not have a material adverse effect on our business, results of operations or financial condition. On January 1, 2023, POSCO Energy Corporation (“POSCO Energy”), Korea’s largest domestic private power utility company and a provider of alternative environmentally-friendly energy solutions, merged into POSCO INTERNATIONAL. POSCO INTERNATIONAL’s power generation business competes principally with private-sector power generation companies in Korea that are affiliated with major domestic business groups, including SK Innovation Co., Ltd. and GS EPS Co., Ltd. Construction Segment of the Infrastructure Business. POSCO Eco & Challenge Co., Ltd. (“POSCO E&C” and formerly known as POSCO Engineering & Construction Co., Ltd.), our consolidated subsidiary, operates in the highly competitive construction industry. Competition is based primarily on price, reputation for quality, reliability, punctuality and financial strength of contractors. Intense competition among construction companies may result in, among other things, a decrease in the price POSCO E&C can charge for its services, difficulty in winning bids for construction projects, an increase in construction costs and difficulty in obtaining high-quality contractors and qualified employees. In Korea, POSCO E&C’s main competition in the construction of residential and non-residential buildings, engineering, procurement and construction (“EPC”) projects, urban planning and development projects and civil works projects consists of approximately ten major domestic construction companies, many of which are member companies of other large business groups in Korea and are capable of undertaking larger-scale, higher-value-added projects that offer greater potential returns. A series of measures introduced by the Government over the past several years to regulate housing prices in Korea, as well as increasing popularity of low-bid contracts in civil works project mandates, have contributed to increased competition in the Korean construction industry in recent years. Competition for new project awards in overseas markets is also intense. In these markets, POSCO E&C faces competition from local construction companies and other major Korean construction companies with overseas operations, as well as international construction companies from other countries. Construction companies from other developed countries may be more experienced, 5 Table of Contents have greater financial resources and possess more sophisticated technology than POSCO E&C, while construction companies from developing countries often have the advantage of lower wage costs. Some of these competitors have achieved higher market penetration than POSCO E&C has in specific markets in which it competes, and POSCO E&C may need to accept lower margins in order for it to compete successfully against them. POSCO E&C’s failure to successfully compete in the domestic or overseas construction markets could adversely affect its market position and our results of operations and financial condition. Logistics and Others Segment of the Infrastructure Business. POSCO DX Co., Ltd. (“POSCO DX” and previously named POSCO ICT Co., Ltd.) competes principally with system integration service providers in Korea that are affiliated with major domestic business groups, including Samsung SDS Co., Ltd., LG CNS Co., Ltd. and SK Inc. AX. POSCO FLOW Co., Ltd. (“POSCO FLOW”) competes principally with logistics service providers in Korea that are affiliated with major domestic business groups, including Hyundai Glovis Co., Ltd., Samsung SDS Co., Ltd. and LX Pantos Co., Ltd. Rechargeable Battery Materials Segment. In the energy materials market, POSCO Future M Co., Ltd. (“POSCO Future M” and previously named POSCO Chemical Co., Ltd.) competes with other global leading manufacturers of cathode and anode materials, including LG Chemical Co., Ltd. and Ecopro BM Co., Ltd. Global demand for electric vehicles has decreased in recent years, which in turn has decreased demand for cathode and anode materials from our key customers. In part due to a slowdown of the rechargeable battery industry, POSCO Pilbara Lithium Solution Co., Ltd. (“POSCO Pilbara Lithium Solution”), a subsidiary in which we hold a 82% interest that engages in the production of lithium hydroxide, recognized an inventory impairment loss of Won 56 billion in 2024. In addition, POSCO Argentina SAU (“POSCO Argentina”), our wholly-owned subsidiary that also engages in the production of lithium hydroxide, recognized an inventory impairment loss of Won 53 billion in 2024. In its legacy business areas of refractories and lime chemicals, POSCO Future M competes principally with Chosun Refractories ENG Co., Ltd. and Korea Refractories Co., Ltd. Korea and the rest of Asia are our most important markets, and our current business and future growth could be materially and adversely affected if economic conditions in the region deteriorate. We are a holding company incorporated in Korea, and a substantial portion of our subsidiaries’ operations and assets are located in Korea. Domestic demand for steel products is affected by the condition of major steel consuming industries, such as construction, shipbuilding, automotive, electrical appliances and downstream steel processors, and the Korean economy in general. In addition, the trading operations of POSCO INTERNATIONAL are affected by the general level of trade between Korea and other countries, which in turn tends to fluctuate based on general conditions in the Korean and global economies. As a result, we are subject to political, economic, legal and regulatory risks specific to Korea, and our performance and successful fulfillment of our operational strategies are largely dependent on the overall Korean economy. Following a period of deterioration due to the debilitating effects of the COVID-19 pandemic on the Korean economy as well as on the economies of Korea’s major trading partners in 2020, the overall Korean economy showed signs of recovery in 2021. However, adverse conditions and volatility in the worldwide financial markets, fluctuations in oil and commodity prices, supply chain disruptions and the increasing weakness of the global economy, as well as significant fluctuations in policy interest rates globally (including Korea), have contributed to the uncertainty of global economic prospects in recent years and have adversely affected, and may continue to adversely affect, the Korean economy. The value of the Won relative to major foreign currencies, in particular the U.S. dollar, has fluctuated significantly and, as a result of uncertain global and Korean economic, social and political conditions, there has been significant volatility in the stock prices of Korean companies recently. Future declines in the Korea Composite Stock Price Index (the “KOSPI”), and large amounts of sales of Korean securities 6 Table of Contents by foreign investors and subsequent repatriation of the proceeds of such sales may adversely affect the value of the Won, the foreign currency reserves held by financial institutions in Korea, and the ability of Korean companies to raise capital. Any future deterioration of the Korean or global economy could adversely affect our business, financial condition and results of operations. Other developments that could have an adverse impact on Korea’s economy include: • declines in consumer confidence and a slowdown in consumer spending; • rising inflationary pressures leading to increases in costs of goods and services and a decrease in purchasing power; • hostilities or political or social tensions involving countries in the Middle East (including those resulting from the hostilities in the Middle East following the Israel-Hamas war and the military conflicts between Iran and other countries, including the United States and Israel) and Northern Africa and any material disruption in the global supply of oil or sudden increase in the price of oil; • hostilities or political or social tensions involving Russia (including the Russia-Ukraine war and the ensuing actions against Russia) and any resulting adverse effects on the global supply of oil and other natural resources or the global financial markets; • adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of the deterioration of economic and trade relations among such countries (including escalations of tariffs) and increased uncertainties in the global financial markets and industry; • the imposition of significant tariffs on Korea’s exports by any of Korea’s major export markets; • adverse changes or volatility in foreign currency reserve levels, interest rates, inflation rates, commodity prices (including oil prices), exchange rates (including fluctuation of the U.S. dollar, Euro or Japanese Yen exchange rates or revaluation of the Chinese Yuan) or stock markets; • the occurrence of severe health epidemics in Korea or other parts of the world; • political uncertainty or increasing strife among or within political parties in Korea following the declaration of martial law by former President Yoon Suk-yeol in December 2024 that led to his impeachment and subsequent removal in April 2025 and the election of Mr. Lee Jae-myung as President in June 2025; • deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy; • the economic impact of any pending or future free trade agreements or of any changes to existing free trade agreements; • increased sovereign default risks in select countries and the resulting adverse effects on the global financial markets; • deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea; • investigations of large Korean business groups and their senior management for possible misconduct; 7 Table of Contents • continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea; • shortages of imported raw materials, natural resources, rare earth minerals or component parts due to disruptions to the global supply chain; • social and labor unrest; • substantial changes in the market prices of Korean real estate; • a substantial decrease in tax revenues and a substantial increase in the Government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, which, would likely lead to a national budget deficit as well as an increase in the Government’s debt; • financial problems or lack of progress in the restructuring of Korean business groups, other large troubled companies, their suppliers or the financial sector; • loss of investor confidence arising from corporate accounting irregularities or corporate governance issues concerning certain Korean companies; • increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea; • a continued decrease in the population and birthrates in Korea; • geopolitical uncertainty and the risk of further attacks by terrorist groups around the world; • natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners; and • an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States. We rely on export sales for a significant portion of our total sales. Adverse economic and financial developments in Asia in the future may have an adverse effect on demand for our products in Asia and increase our foreign exchange risks. We rely on export sales for a significant portion of our total sales. In particular, the Steel Segment’s export sales and overseas sales to customers abroad accounted for 61.7% of the Steel Segment’s total revenue in 2025. The Steel Segment’s export sales to customers in Asia, including China, Japan, Indonesia, Thailand and Malaysia, accounted for 52.5% of the Steel Segment’s total export sales revenue in 2025, and we expect our sales to these countries to remain important in the future. In particular, the Steel Segment’s export sales to Asia (other than China and Japan) accounted for 22.5% of the Steel Segment’s total export sales revenue in 2025. Accordingly, adverse economic and financial developments in these countries may have an adverse effect on demand for our products. Unfavorable or uncertain economic and market conditions can be caused by, among other factors, difficulties in the financial sector, corporate, political or other scandals that may reduce confidence in the markets, declines in business confidence, increases in inflation, natural disasters or pandemics and outbreaks of hostilities or other geopolitical instability. Deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy, or a combination of these or other factors, has in the past adversely affected, and may in the future adversely affect, demand for our products. 8 Table of Contents Economic weakness in Asia may also adversely affect our sales to the Korean companies that export to the region, especially companies in the construction, shipbuilding, automotive, electrical appliances and downstream steel processing industries. Weaker demand in these countries, combined with an increase in global production capacity, may also reduce export prices in U.S. dollar terms of our principal products sold to customers in Asia. For a discussion of production over-capacity in the global steel industry, see “— We operate in the highly competitive steel, trading, construction and energy industries, and our failure to successfully compete would adversely affect our market position and business.” We attempt to maintain and expand our export sales to generate foreign currency receipts to cover our foreign currency purchases and debt service requirements. Consequently, any decrease in our export sales could also increase our foreign exchange risks. Depreciation of the value of the Won against the U.S. dollar and other major foreign currencies may have a material adverse effect on the results of our operations and on the price of the ADSs. Our consolidated financial statements are prepared from our local currency denominated financial results, assets and liabilities and our subsidiaries around the world, which are then translated into Won. A substantial proportion of our consolidated financial results is accounted for in currencies other than the Won. Accordingly, our consolidated financial results and assets and liabilities may be materially affected by changes in the exchange rates of foreign currencies. In 2025, 61.7% of the Steel Segment’s total revenue was from overseas markets outside of Korea. To the extent that we incur costs in one currency and make sales in another, our profit margins may be affected by changes in the exchange rates between the two currencies. Since the currency in which sales are recorded may not be the same as the currency in which expenses are incurred, foreign exchange rate fluctuations may materially affect our results of operations. Depreciation of the Won may materially affect the results of our operations because, among other things, it causes: • an increase in the amount of Won required for us to make interest and principal payments on our foreign currency-denominated debt; • an increase in Won terms in the costs of raw materials and equipment that we purchase from overseas sources and a substantial portion of our freight costs, which are denominated primarily in U.S. dollars; and • foreign exchange translation losses on foreign currency-denominated liabilities, which lower our earnings for accounting purposes. Appreciation of the Won against major currencies, on the other hand, causes: • our export products to be less competitive by raising our prices in U.S. dollar, Yen and Yuan terms; and • a reduction in net sales and accounts receivables in Won from export sales, which are primarily denominated in U.S. dollars and to a lesser extent in Yen and Yuan. The overall net impact from fluctuations of the Won against major currencies is difficult to estimate and varies from year to year. We strive to naturally offset our foreign exchange risk by matching foreign currency receivables with our foreign currency payables and our overseas subsidiaries have sought to further mitigate the adverse impact of exchange rate fluctuations by conducting business transactions in the local currency of the respective market in which the transactions occur. In particular, POSCO INTERNATIONAL’s exposure to fluctuations in exchange rates, including the Won/U.S. dollar exchange rate, is limited because trading transactions typically involve matched purchase and sale contracts, which result in limited settlement exposure, and because POSCO INTERNATIONAL’s contracts with domestic suppliers of products for export and with domestic purchasers of imported products are generally denominated in U.S. dollars. Although the 9 Table of Contents impact of exchange rate fluctuations is partially mitigated by such strategies, we and our subsidiaries, particularly POSCO INTERNATIONAL and POSCO E&C, also periodically enter into derivative contracts, primarily foreign currency swaps and forward exchange contracts, to further hedge some of our foreign exchange risks. However, our results of operations have historically been affected by exchange rate fluctuations and there can be no assurance that such strategies will be sufficient to reduce or eliminate the adverse impact of such fluctuations in the future. Fluctuations in the exchange rate between the Won and the U.S. dollar will also affect the U.S. dollar equivalent of the Won price of the shares of our common stock on the KOSPI Market and, as a result, will likely affect the market price of the ADSs. These fluctuations will also affect the U.S. dollar conversion by the depositary for the ADRs of cash dividends, if any, paid in Won on shares of common stock represented by the ADSs. We are dependent on imported raw materials, and significant increases in market prices of essential raw materials could adversely affect our margins and profits. We purchase substantially all of the principal raw materials we use from sources outside Korea, including iron ore and coal. POSCO imported approximately 49 million dry metric tons of iron ore and 24 million wet metric tons of coal in 2025. Iron ore is sourced primarily from Australia, Brazil and Canada. Coal is sourced primarily from Australia, Canada and the United States. Supply disruptions, which could be caused by political or other events in the countries from which we import these materials, could adversely affect our operations. In addition, we are particularly exposed to increases in the prices of coal, iron ore and nickel, which represent the largest components of our cost of goods sold. The prices of our key raw materials have fluctuated significantly in recent years. For example, the average market price of iron ore per dry metric ton (Iron Ore 62% Fe, CFR China Index announced by Platts) was US$120 in 2023, US$109 in 2024 and US$102 in 2025. The average market price of coal per wet metric ton (Premium Low Vol Coking Coal, FOB Australia Index announced by Platts) was US$296 in 2023, US$240 in 2024 and US$188 in 2025. Such fluctuations in the price of coal in recent years were in large part attributable to sanctions imposed on Russia, a large exporter of coal, following its invasion of Ukraine in February 2022. Our long-term supply contracts generally have terms of three to ten years and provide for periodic price adjustments to the then-market prices. We typically adjust the prices on a quarterly basis and maintain approximately one month of inventory of raw materials. Such price adjustments are driven by various factors, including the global economic outlook, global market prices of raw materials and steel products, supply and demand outlook of raw materials and production costs of raw materials. For both coal and iron ore, we typically agree on the purchase price with the suppliers primarily based on the spot market price periodically announced by Platts (Premium Low Vol Coking Coal, FOB Australia Index and Iron Ore 62% Fe, CFR China Index). As of December 31, 2025, 48 million tons of iron ore and 26 million tons of coal remained to be purchased under long-term supply contracts. Future increases in prices of our key raw materials and our inability to pass along such increases to our customers could adversely affect our margins and profits. Increased prices may also cause potential customers to defer purchase of steel products, while rapidly falling prices may increase loss on valuation of raw material inventory purchased when prices were higher, either of which could have an adverse effect on our business, financial condition and results of operations. Expansion of our operations abroad is important to our long-term success, and our limited experience in the operation of our business outside Korea increases the risk that our international expansion efforts will not be successful. We conduct steel, international trading, construction and energy operations abroad, and our business relies on a global trading network comprised of overseas subsidiaries, branches and representative offices. Although many of our subsidiaries and overseas branches are located in developed countries, we also operate in numerous countries with developing economies. In addition, 10 Table of Contents we intend to continue to expand our production operations internationally by carefully seeking out investment opportunities in regions that we believe offer promising growth prospects, including the United States and India. For example, we plan to (1) make investments alongside Hyundai Motor Group for the joint development and construction of an electric arc furnace steel mill in Louisiana, United States, (2) make investments alongside JSW Steel Limited to jointly construct an integrated steel mill in Odisha, India and (3) acquire a 30% equity interest in joint venture that will hold interests in certain lithium mining assets of Mineral Resources Ltd. in Australia. We may enter into additional joint ventures with foreign companies that would enable us to rely on these businesses to conduct our operations, establish local networks and coordinate our sales and marketing efforts abroad. To the extent that we enter into these arrangements, our success will depend in part on the willingness of our partner companies to dedicate sufficient resources to their partnership with us, as well as our financial capacity to support such arrangements. In other situations, we may decide to establish manufacturing facilities by ourselves instead of relying on partners. The demand and market acceptance for our products produced abroad are subject to a high level of uncertainty and are substantially dependent upon global market conditions. We cannot assure you that our international expansion plan will be profitable or that we can recoup the costs related to such investments. Expansion of our operations abroad requires management attention and resources. In addition, we face additional risks associated with our expansion outside Korea, including: • changes in international and domestic political and economic conditions as well as social conditions; • challenges caused by distance, language, local business customs and cultural differences; • local labor relation issues which could lead to significant work stoppages and labor unrest; • higher costs associated with doing business internationally; • legal and regulatory restrictions, including foreign exchange controls that might prevent us from repatriating cash earned in countries outside Korea; • longer payment cycles in some countries; • credit risk and higher levels of payment fraud; • currency exchange risks; • potentially adverse tax consequences; and • seasonal reductions in business activity during the summer months in some countries. We have limited insurance coverage and may incur significant losses resulting from operating hazards, product liability claims from customers or business interruptions. The normal operation of our manufacturing facilities may be interrupted by accidents caused by operating hazards, power supply disruptions and equipment failures, as well as natural disasters. For example, we experienced significant losses related to flooding caused by Typhoon Hinnamnor in September 2022. See “— Earthquakes, tsunamis, floods, severe health epidemics (including the occurrence of widespread infectious diseases such as the global COVID-19 pandemic) and other natural calamities could materially and adversely affect our business, results of operations or financial condition.” As with other industrial companies, our operations involve the use, handling, generation, processing, storage, transportation and disposal of hazardous materials, which may result in fires, explosions, spills and other unexpected or dangerous accidents causing property damage as well as personal injuries or death. We are also exposed to risks associated with product liability claims in the 11 Table of Contents event that the use of the products we sell results in injury. We maintain property insurance for our property, plant and equipment that we believe to be consistent with market practice. However, we may not have adequate resources to satisfy a judgment in excess of our insurance coverage in the event of a successful claim against us. Any occurrence of accidents or other events affecting our operations could result in potentially significant monetary damages, diversion of resources, production disruption and delay in delivery of our products, which may have a material adverse effect on our business, financial condition and results of operations. Impositions of anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs may have an adverse impact on our export sales. Our subsidiaries sell a significant portion of their products outside Korea as well as engage in trading activities worldwide, and, from time to time, we are involved in trade remedy proceedings in various jurisdictions. We actively participate in such proceedings to minimize adverse effects and related risks. Although trade remedy actions and regulatory scrutiny have increased in recent years, such cases have historically been limited in scope relative to our overall global sales and operations. Through our trade affairs office, we continue to closely monitor developments in trade remedy policies, including anti-dumping duties, safeguard duties, countervailing duties, quotas and tariffs, in all major markets in which we operate, and seek to mitigate related risks by adjusting supply chains, production and export arrangements and, where necessary, defend our interests. However, there can be no assurance that free trade agreements between Korea and its major trading partners will remain unchanged, or that new or increased anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs will not be imposed on our products in the future. The occurrence of any such events, including those described below, may have a material adverse effect on our business, financial condition and results of operations. In February 2025, the President of the United States removed certain country-specific exemptions, including those applicable to the Republic of Korea, reinstating a 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%, effective March 2025. In June 2025, these tariffs were further increased from 25% to 50%. U.S. tariff policies remain subject to change, and tariffs applicable to Korean-origin products have fluctuated over time and may be increased or decreased in the future. Furthermore, other countries have implemented, and may continue to implement, retaliatory tariffs or other trade restrictions in response to U.S. trade actions. For a discussion of our export sales and overseas sales to customers in North America, which includes the United States and Canada, see “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment – Markets – Exports.” While our direct exports to customers in the United States represent a limited portion of our total sales, such measures may materially affect our downstream customers that manufacture finished products using our products in countries subject to such tariffs and export those products to the United States or other markets subject to similar trade measures. Increases in tariffs or other trade barriers applicable to products manufactured by our downstream customers may lead to higher prices, reduced competitiveness or lower end-market demand, which may in turn adversely affect demand for our products. Historically, tariffs have led to increased trade and political tensions. In response to the recent tariffs imposed by the U.S. government, various countries have implemented, or have announced plans to implement, retaliatory tariffs on goods produced in the United States. These retaliatory measures, along with the broader trend of unilateral trade actions, could trigger a cycle of trade disputes. Such political and economic tensions as a result of trade policies could reduce trade volume, investment, technological exchange and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. Consequently, there can be no assurance that our proactive mitigation measures will be sufficient to offset the risks of evolving trade policies. If further tariffs are imposed on 12 Table of Contents a broader range of our exports or our customers’ exports, or if further retaliatory trade measures are adopted by affected countries, we or our customers may be required to adjust pricing, modify supply or sourcing arrangements or incur additional costs, any of which may have a material adverse impact on our business, financial condition and results of operations. Our rechargeable battery materials business is affected by market conditions in the highly cyclical rechargeable battery industry, and the key customers of such business are substantially affected by government incentives. Significant decrease in such incentives has and will likely continue to have a material adverse effect on our rechargeable battery materials business. POSCO Future M engages in the manufacturing and sale of cathode and anode materials, which are two of the main components of rechargeable batteries. In addition, we engage in natural resources development and production of lithium hydroxide and lithium carbonate. We sell our rechargeable battery materials primarily to electric vehicle battery manufacturers in Korea and abroad. Accordingly, our rechargeable battery materials business is affected by market conditions in the highly cyclical rechargeable battery industry. The industry’s cyclicality results primarily from fluctuations in demand for the end products that use rechargeable batteries, particularly from the electric vehicle industry, which are sensitive to general conditions in the global economy and the level of incentives provided to the purchasers of electric vehicles. Key customers of our rechargeable battery materials business are also impacted by certain government incentives, including grants, subsidies and tax credits. For example, in July 2025, the United States enacted legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which repealed or curtailed certain consumer-facing electric vehicle incentives that had been previously available while preserving other incentives, including the advanced manufacturing production credit (“AMPC”) available for battery production and sale in the United States and investment tax credits available to purchasers of certain energy storage technology in the United States. In particular, the legislation eliminated consumer-facing electric vehicle tax credits for vehicles acquired after September 30, 2025, which may adversely affect demand for electric vehicles in the United States, which could in turn reduce demand for our rechargeable battery products. In addition, the AMPC, while currently available, is scheduled to begin phasing down from 2030 and will be progressively reduced through its expiration in 2032. Furthermore, the OBBBA introduced the “prohibited foreign entity” framework, which disallows the AMPC and other tax credits to battery manufacturers who are prohibited foreign entities or who receive “material assistance” from prohibited foreign entities. Compliance with these expanded restrictions may require us to restructure supply chains, replace or diversify suppliers, or incur additional capital expenditures and operating costs. If the AMPC is further reduced or subject to more restrictive eligibility conditions during its phase-down period, or if we are unable to satisfy applicable requirements on a cost-effective basis, our profitability and financial stability could be materially and adversely affected. There can be no assurance that we will continue to qualify for the AMPC or other governmental incentives, or that the level of benefits available to us will not be further reduced or otherwise adversely modified. Moreover, government incentive programs, including grants, subsidies and tax credits, remain subject to significant political, regulatory and interpretive uncertainty. Future changes in U.S. trade, industrial or energy policies could further limit the availability of tax credits, impose additional compliance burdens or result in increased costs, reduced operational flexibility or lower overall demand for electric vehicles or battery products. If government incentives applicable to our products or manufacturing activities are further reduced, eliminated, become subject to more restrictive conditions or otherwise become less favorable, or if we are unable to satisfy applicable eligibility requirements on a timely or cost-effective basis, our business, financial condition and results of operations could be materially and adversely affected. 13 Table of Contents Any such event may have a material adverse effect on the business, results of operations and financial condition of the Rechargeable Battery Materials Segment and us. An actual or anticipated deterioration in market conditions may result in a decline in demand for our rechargeable battery materials that may have a negative impact on the prices at which they can be sold. In such a case, we will likely face pressure to reduce prices and may need to rationalize our production capacity and reduce fixed costs. In addition, there can be no assurance that the IRA or other similar government measures will not be terminated or further amended to reduce the incentives provided to our key customers. A decrease, expiration or termination of such incentives could, if significant, have a material adverse effect on the key customers of our rechargeable battery materials business, which in turn may decrease demand for our products. The occurrence of any such events may have a material adverse impact on the business, results of operations and financial condition of the Rechargeable Battery Materials Segment. We participate in overseas natural resources exploration, development and production projects, which expose us to various risks. As part of our efforts to diversify our operations, we carefully seek out promising overseas natural resources exploration, development and production opportunities. We also participate in natural resources projects as part of consortia or through acquisitions of minority interests. We may also selectively acquire or invest in companies or businesses that engage in such activities. To the extent that we enter into these arrangements, our success in these endeavors will depend in part on the willingness of our partner companies to dedicate sufficient resources to their partnership with us, as well as our ability to finance such investments. The demand and market acceptance for such activities abroad are subject to a substantially higher level of uncertainty than our traditional steel business and are substantially dependent upon the market condition of the global natural resources industry as well as the political and social environment of the target countries. The performance of projects in which we participate may be adversely affected by the occurrence of military hostility, political unrest, acts of terrorism, natural disaster or fire. For example, in connection with our 22.1% investment in NCR LLC in the United States, we recognized an impairment loss of Won 220 billion in 2024 related to a mine fire. In addition, some of our current exploration, development and production projects involve drilling exploratory wells on properties with no proven amount of natural resource reserves. Although all drilling, whether developmental or exploratory, involves risks, exploratory drilling involves greater risks of dry holes or failure to find commercial quantities of natural resources. Other risks to which such activities are subject include obtaining required regulatory approvals and licenses, securing and maintaining adequate property rights to land and natural resources, and managing local opposition to project development. A decrease in the market price of raw materials may also adversely impact the value of our investments related to natural resources projects, potentially resulting in impairment losses. We have limited experience in this industry, and we cannot assure you that our overseas natural resources exploration, development and production projects will be profitable, that we will be able to meet the financing requirements for such projects, or that we can recoup the costs related to such investments, which in turn could materially and adversely affect our business, financial condition and results of operations. We may encounter problems with joint overseas natural resources exploration, development and production projects and large-scale infrastructure projects, which may materially and adversely affect our business. We typically pursue our natural resources exploration, development and production projects jointly with consortium partners or through acquisition of minority interests in such projects, and we expect to be involved in other joint projects in the future. We sometimes hold a majority interest in the projects among the consortium partners, but we often lack a controlling interest in the joint projects. Therefore, we may not be able to require that our joint ventures sell assets or return invested capital, 14 Table of Contents make additional capital contributions or take any other action without the vote of at least a majority of our consortium partners. If there are disagreements between our consortium partners and us regarding the business and operations of the joint projects, we cannot assure you that we will be able to resolve them in a manner that will be in our best interests. Certain major decisions, such as selling a stake in the joint project, may require the consent of all other partners. These limitations may adversely affect our ability to obtain the economic and other benefits we seek from participating in these projects. In addition, our consortium partners may: • have economic or business interests or goals that are inconsistent with ours; • take actions contrary to our instructions, requests, policies or objectives; • be unable or unwilling to fulfill their obligations; • have financial difficulties; or • have disputes with us as to their rights, responsibilities and obligations. Any of these and other factors may have a material adverse effect on the performance of our joint projects and expose us to a number of risks, including the risk that the partners may be incapable of providing the required financial support to the partnerships and the risk that the partners may not be able to fulfill their other obligations, resulting in disputes not only between our partners and us, but also between the joint ventures and their customers. Such a material adverse effect on the performance of our joint projects may in turn materially and adversely affect our business, results of operations and financial condition. Earthquakes, tsunamis, floods, severe health epidemics (including the occurrence of widespread infectious diseases such as the global COVID-19 pandemic) and other natural calamities could materially and adversely affect our business, results of operations or financial condition. If earthquakes, tsunamis, floods, severe health epidemics or any other natural calamities were to occur in the future in any area where any of our assets, suppliers or customers are located, our business, results of operations or financial condition could be adversely affected. For example, Typhoon Hinnamnor, a powerful tropical cyclone that landed in South Gyeongsang Province, Korea in September 2022, caused substantial flooding and property damage in cities located near the coastline, including Pohang. The typhoon caused electricity blackouts and flooded some of the Pohang Works’ facilities located adjacent to Youngil Bay on the southeastern coast of Korea, causing disruptions to our downstream production activities, which adversely impacted our sales in the fourth quarter of 2022 following the flood. A number of suppliers of our raw materials and customers of our products are also located in countries that have historically suffered natural calamities from time to time, such as Australia, China and Japan, as well as Korea. Any occurrence of such natural calamities in countries where our suppliers are located may lead to shortages or delays in the supply of raw materials. In addition, natural calamities in areas where our customers are located, including China, Southeast Asia, Japan, Europe, North America and Korea, may cause disruptions in their businesses, which in turn could adversely impact their demand for our products. In addition, if severe health epidemics were to occur in the future in any area where any of our assets, suppliers or customers are located, our business, results of operations or financial condition could be adversely affected. For example, COVID-19, an infectious disease caused by severe acute respiratory syndrome coronavirus 2, was declared a “pandemic” by the World Health Organization in March 2020. The global outbreak of COVID-19 had led to global economic and financial disruptions and had adversely affected our business operations. 15 Table of Contents Risks associated with COVID-19 or other types of widespread infectious diseases include: • an increase in unemployment among, and/or decrease in disposable income of, consumers who purchase the products manufactured by our customers and a decline in overall consumer confidence and spending levels, which in turn may decrease demand for our products; • disruption in the normal operations of the businesses of our customers, which in turn may decrease demand for our products; • disruption in the supply of raw materials from our suppliers and vendors; • disruption in the delivery of our products to our customers; • disruption in the normal operations of our business resulting from contraction of infectious diseases by our employees or quarantine measures imposed by governments, which may necessitate our employees to be quarantined and/or our manufacturing facilities or offices to be temporarily shut down; • disruption resulting from the necessity for social distancing, including implementation of temporary adjustment of work arrangements requiring employees to work remotely, which may lead to a reduction in labor productivity (for example, from time to time, we implemented staggered remote working arrangements for our employees at our headquarters); • depreciation of the Won against major foreign currencies, which in turn may increase the cost of imported raw materials; • unstable global and Korean financial markets, which may adversely affect our ability to meet our funding needs on a timely and cost-effective basis; and • impairments in the fair value of our investments in companies that may be adversely affected by the pandemic. In the event that a future recurrence of COVID-19 or an occurrence of other types of widespread infectious diseases cannot be effectively and timely contained, our business, financial condition and results of operations may be materially and adversely affected. The Korean electric power industry is heavily regulated by the Government, whose policies may have a material adverse impact on POSCO INTERNATIONAL’s power generation business. The Korean electric power industry is heavily regulated by the Government, which seeks to ensure balanced overall electricity supply and demand in Korea at affordable rates to end users while taking into consideration various other factors, including economic conditions, national standard of living, long-term energy supply and demand plans and seasonality. To achieve such objectives, the Government has, from time to time, adopted various policy initiatives to foster efficiency in the Korean electric power industry, and has also adopted policy measures that affect electricity tariff rates in order to ease the burden on certain consumers. In addition, these policy initiatives have not always been fully implemented as originally planned and in some cases have been amended or replaced by new initiatives, among others, due to economic or policy considerations or a change in administration. No assurance can be provided that such policies, as well as changes therein, will not have a material adverse effect on POSCO INTERNATIONAL’s power generation business, results of operations or financial condition. Cyclical fluctuations based on macroeconomic factors may adversely affect POSCO E&C’s business and performance. We engage in engineering and construction activities through POSCO E&C. The Construction Segment of our Infrastructure Business is highly cyclical and tends to fluctuate based on 16 Table of Contents macroeconomic factors, such as consumer confidence and income, employment levels, interest rates, inflation rates, demographic trends and policies of the Government. From time to time, the construction industry has experienced significant and sometimes prolonged downturns, and our construction revenues have fluctuated in the past depending on the level of public and private sector construction activities in Korea and abroad. In addition, the performance of POSCO E&C’s domestic residential property business is highly dependent on the general condition of the real estate market in Korea. The overall prospects for Korean construction companies remain uncertain, and a prolonged general downturn in the construction market resulting in weaker demand may adversely affect our business, results of operations or financial condition. Many of POSCO E&C’s domestic and overseas construction projects are on a fixed-price basis, which could result in losses for us in the event that unforeseen additional expenses arise with respect to the project. Many of POSCO E&C’s domestic and overseas construction projects are carried out on a fixed-price basis according to a predetermined timetable, pursuant to the terms of a fixed-price contract. Under such fixed-price contracts, POSCO E&C retains all cost savings on completed contracts but is also liable for the full amount of all cost overruns and may be required to pay damages for late delivery. The pricing of fixed-price contracts is crucial to POSCO E&C’s profitability, as is its ability to quantify risks to be borne by it and to provide for contingencies in the contract accordingly. POSCO E&C attempts to anticipate costs of labor, raw materials, parts and components in its bids on fixed-price contracts. However, the costs incurred and gross profits realized on a fixed-price contract may vary from its estimates due to factors such as: • unanticipated variations in labor and equipment productivity over the term of a contract; • unanticipated increases in labor, raw material, parts and components, subcontracting and overhead costs, including as a result of bad weather; • delivery delays and corrective measures for poor workmanship; and • errors in estimates and bidding. For example, in April 2025, due to a collapse at the Sinansan Line project site of POSCO E&C, POSCO E&C incurred losses and may incur additional costs, including those related to construction delays, compensation claims, regulatory penalties and enhanced safety compliance measures. Furthermore, in response to such accident, POSCO E&C temporarily suspended construction at all of its domestic sites for approximately one month to conduct company-wide safety inspections, resulting in decreased revenue, subcontractor standby costs and increased indirect costs. If unforeseen additional expenses arise over the course of a construction project, such expenses are usually borne by POSCO E&C, and its profit from the project will be correspondingly reduced or eliminated. If POSCO E&C experiences significant unforeseen additional expenses with respect to its fixed price projects, it may incur losses on such projects, which could have a material adverse effect on its financial condition and results of operations. We may not succeed in implementing our strategy to take advantage of, or fail to realize the anticipated benefits of, our holding company structure and diversification strategy. We became a holding company on March 2, 2022, and one of our principal strategies is to take advantage of our holding company structure to invest in promising businesses. In part to prepare for the eventual maturation of the Korean steel market, we have made investments in the past decade to secure new growth engines by diversifying into new businesses related to our steel operations that we believe will offer greater potential returns, as well as entering into new businesses not related to our 17 Table of Contents steel operations such as the development and production of lithium, cathode and anode materials, energy solutions (particularly liquefied natural gas (“LNG”) trading) and specialty crop (particularly palm oil, the value chain of which may be expanded into biofuel). From time to time, we may selectively acquire or invest in companies to pursue such diversification strategy. The implementation of this strategy may require additional investments of capital, infrastructure, human resources and management attention. This strategy entails certain risks, including the possibility that we may face significant competition from other holding companies and operating companies in particular segments. If our strategy does not succeed, we may incur losses on our investments and our results of operations and financial condition may suffer. In order to streamline our diversification efforts, we are currently exploring avenues to divest from non-core underperforming projects and assets. As of December 31, 2025, we have divested from 73 non-core underperforming projects and assets. Although we will continue to streamline such non-core underperforming projects and assets, any potential transaction is dependent upon a number of factors that may be beyond our control, including, among other factors, market conditions, industry trends, the interests of third-parties and the availability of financing to potential buyers on reasonable terms. Furthermore, there can be no assurance that we will be able to consummate any such transaction on acceptable terms or at all. Our failure to successfully divest from non-core underperforming projects and assets or to reinvest the proceeds of any such divestment, each on acceptable terms, may have a material adverse effect on our financial condition and results of operations. Furthermore, our success under a holding company structure depends on our ability to realize the anticipated synergies, growth opportunities and cost savings from coordinating the businesses of our various subsidiaries. Although we may integrate certain aspects of our subsidiaries’ operations into our holding company structure, our subsidiaries will generally continue to operate as independent entities with separate management and staff, and our ability to direct our subsidiaries’ day-to-day operations may be limited. We may continue to increase our equity interest in our subsidiaries or investees and may also consider acquiring or merging with other companies to achieve more balanced growth and further diversify our revenue base. The integration of our new subsidiaries’ or investees’ separate businesses and operations, as well as those of any companies we may acquire or merge with in the future, under our holding company structure could require a significant amount of time, financial resources and management attention. Moreover, that process could disrupt our operations, reduce employee morale, produce unintended inconsistencies in our standards, controls, procedures or policies, and affect our relationships with customers and our ability to retain key personnel. The realization of the anticipated benefits of our holding company structure and any mergers or acquisitions we decide to pursue may be blocked, delayed or reduced as a result of many factors, some of which may be outside our control. These factors include: • unforeseen contingent risks, including lack of required capital resources or increased tax liabilities, relating to our holding company structure; • difficulties in integrating the diverse activities and operations of our subsidiaries or investees or any companies we may merge with or acquire; • unforeseen contingent risks or latent liabilities relating to the acquisition that may become apparent in the future; • difficulties in managing a larger business; • unexpected business disruptions; • loss of key management personnel or customers; and • labor unrest. 18 Table of Contents Accordingly, we may not be able to realize the anticipated benefits of our holding company structure, and our business, results of operations and financial condition may suffer as a result. We depend on limited forms of funding to fund our operations at the holding company level. We are a holding company with no significant assets other than the shares of our subsidiaries. We expect our primary sources of funding and liquidity to be dividends from our subsidiaries, direct borrowings and issuances of equity or debt securities at the holding company level. Our ability to meet our obligations to our direct creditors and employees and our other liquidity needs and regulatory requirements at the holding company level depends on timely and adequate distributions from our subsidiaries and our ability to sell our securities or obtain credit from our lenders. The ability of our subsidiaries to pay dividends to us depends on their financial condition and operating results. In the future, our subsidiaries may enter into agreements, such as credit agreements with lenders, that impose restrictions on their ability to make distributions to us, and the terms of future obligations and the operation of Korean law could prevent our subsidiaries from making sufficient distributions to us to allow us to make payments on our outstanding obligations. See “— As a holding company, we depend on receiving dividends from our subsidiaries to pay dividends on our common shares.” Any delay in receipt of or shortfall in payments to us from our subsidiaries could result in our inability to meet our liquidity needs, and may disrupt our operations at the holding company level. In addition, creditors of our subsidiaries will generally have claims that are prior to any claims of our creditors with respect to their assets. Furthermore, our inability to sell our securities or obtain funds from our lenders on favorable terms, or at all, could also result in our inability to meet our liquidity needs and may disrupt our operations at the holding company level. As a holding company, we depend on receiving dividends from our subsidiaries to pay dividends on our common shares. Since our principal assets at the holding company level are the shares of our subsidiaries, our ability to pay dividends on our common shares largely depends on dividend payments from those subsidiaries. Those dividend payments are subject to the Korean Commercial Code and regulatory limitations, generally based on capital levels and retained earnings. For example, under the Korean Commercial Code, dividends may only be paid out of distributable income, an amount which is calculated by subtracting the aggregate amount of a company’s paid-in capital and certain mandatory legal reserves as well as certain unrealized profits from its net assets, in each case as of the end of the prior fiscal period. Our subsidiaries may not continue to meet the applicable legal and regulatory requirements for the payment of dividends in the future. If they fail to do so, they may stop paying or reduce the amount of the dividends they pay to us, which would have an adverse effect on our ability to pay dividends on our common shares. POSCO HOLDINGS INC. and POSCO remain jointly and severally liable for each other’s liabilities existing prior to the spin-off. On March 1, 2022, we spun off our domestic steel production and sales business (through a vertical spin-off in accordance with Articles 530-2 through 530-12 of the Korean Commercial Code) to establish a wholly-owned subsidiary, and we converted into a holding company within the meaning of the Monopoly Regulation and Fair Trade Act (the “Spin-off”). The registration of the Spin-off occurred on March 2, 2022. As part of the Spin-off, we amended our name from POSCO to POSCO HOLDINGS INC., and the newly created wholly-owned subsidiary was named POSCO. Under the relevant provisions of the Commercial Act of Korea relating to spin-offs, both the operating company and the holding company remain jointly and severally liable after the corporate 19 Table of Contents spin-off for all of their liabilities existing prior to the corporate spin-off unless such joint and several liability has been successfully eliminated through a special resolution adopted at a general meeting of shareholders of the splitting company and consents of creditors of the affected debt, including consent by resolutions at bondholders’ meetings, which resolutions are approved by the court. POSCO HOLDINGS INC. and POSCO remain jointly and severally liable for each other’s debts and other liabilities that existed prior to March 1, 2022 that currently remain outstanding. POSCO is the successor-in-title to all the assets and liabilities and rights and obligations that were related to the domestic steel production and sales business transferred in the Spin-off, as well as all authorized licenses, employment relations, contracts and lawsuits that were directly related to such business, and POSCO HOLDINGS INC. remains jointly and severally liable for such liabilities. The remaining assets and liabilities and rights and obligations related to other business areas remain with POSCO HOLDINGS INC., and POSCO is jointly and severally liable for such liabilities. Defaults by POSCO of such liabilities, if significant, could have a material adverse effect on our results of operations and financial condition. We are subject to environmental regulations, and our operations could expose us to substantial liabilities. We are subject to national and local environmental laws and regulations, including increasing pressure to reduce emission of carbon dioxide relating to our manufacturing process, and our steel manufacturing and construction operations could expose us to risk of substantial liability relating to environmental or health and safety issues, such as those resulting from discharge of pollutants and carbon dioxide into the environment, the handling, storage and disposal of solid or hazardous materials or wastes and the investigation and remediation of contaminated sites. We may be responsible for the investigation and remediation of environmental conditions at currently and formerly operated manufacturing or construction sites. We may also be subject to associated liabilities, including liabilities for natural resource damage, third party property damage or personal injury resulting from lawsuits brought by the Government or private litigants. In the course of our operations, hazardous wastes may be generated at third party-owned or operated sites, and hazardous wastes may be disposed of or treated at third party-owned or operated disposal sites. If those sites become contaminated, we could also be held responsible for the cost of investigation and remediation of such sites, for any associated natural resource damage, and for civil or criminal fines or penalties. Furthermore, heightened global awareness and international and national commitments to reduce greenhouse gas emissions and counteract climate change (including increased activism by non-governmental and political organizations campaigning against fossil fuel extractions) may lead to increased costs for us. Investor preferences and sentiments are also influenced by environmental, social and corporate governance considerations including climate change and the transition to a lower carbon economy. Changes in such preferences and sentiment, including increased scrutiny from market participants, environmental organizations or the press, as well as compliance with such new and more stringent environmental obligations relating to greenhouse gas emissions may require additional capital expenditures or modifications in operating practices, as well as additional reporting obligations. In addition, we may also be subject to pressure and legal actions from environmental activists. For example, in February 2025, a group of ten individuals filed a lawsuit at the Daegu District Court against POSCO seeking an injunction to stop the refurbishment of the No. 2 blast furnace at Gwangyang Works alleging that such refurbishment violates their right to a healthy environment. POSCO intends to vigorously defend against such lawsuit. We are subject to safety regulations, and our operations could expose us to substantial liabilities. The Serious Accident Punishment Act (the “SAPA”) imposes criminal liability on individuals and entities responsible for “serious accidents.” Under SAPA, the term “serious accident” encompasses not 20 Table of Contents only accidents at industrial sites, such as factories or construction sites, but also “public” disasters caused by defects in the design, manufacture, installation and management of products, product ingredients or public facilities or transportation. The SAPA imposes criminal liability against (i) business owners or executives (as defined by the law) who fail to ensure the safety of their business operations and (ii) businesses or institutions that fail their supervisory duties. In case of willful misconduct or gross negligence, the SAPA also imposes punitive damages of up to five times the actual damages. Our operational activities involve inherent risks that may result in accidents involving serious injury or loss of life, environmental damage or property damage. Even though we plan to prioritize on-site safety management by engaging in communications with different stakeholders and investing more in safe environments, there is no guarantee that there will not be accidents due to our inherent operating risks. Although we have analyzed the potential impacts of the SAPA on us and aligned our policies, internal regulations and manuals in preparation for the implementation of the SAPA, there is no guarantee that the SAPA would not adversely affect our business, financial condition and results of operations. For example, in April 2025, there was a collapse at the Sinansan Line project site of POSCO E&C and in November 2025, there were two incidents involving toxic chemicals at Pohang Steelworks, the first incident resulting in one fatality and three injured during repair work and the second incident resulting in two fatalities and four injured during sludge cleaning operations. These incidents are currently being investigated by the relevant authorities and we are fully cooperating with such investigations. While the outcome of such investigations remains uncertain, there can be no assurance that penalties or other disciplinary actions may not be imposed. There can be no assurance that any such penalties or disciplinary actions may not have a material adverse effect on our results of operations and financial condition. Under the SAPA, businesses may avoid punishment if it is found that they duly performed their duties to ensure the safety and health of the participants in their business operations. However, we cannot assure you that, despite all precautionary and preventative measures undertaken by us, these measures will prove to be fully effective at all times or that an incident that could cause harm to our reputation and operation will not happen in the future, including due to factors beyond our control. Significant breaches of information security could lead to legal and financial exposure, damage to our reputation and a loss of confidence by our customers. Our business relies heavily on mission-critical, complex and interdependent information technology systems that support our business processes. It involves the storage and transmission of confidential information relating to us as well as our customers and suppliers. Any significant breach in our information security could expose us to a risk of loss, improper use or disclosure of such information, and could give rise to significant liability or litigation, any of which could harm our reputation and adversely affect our business. We believe that there has been no instance of a material breach in our information security to date that resulted in significant disruption of our operations and had a significant adverse effect on our operational results, or on third parties, including our customers and suppliers. However, there can be no assurance that we will be able to continue to prevent security incidents or other breaches in our information security from having a material adverse effect on our business, results of operations, financial viability or reputation. In addition, our information security measures may fail due to external and internal security threats, outages, malicious intrusions and attacks, programming or human errors and malfeasance, or other similar events. Instituting appropriate access controls and safeguards across our information technology infrastructure is challenging. For a discussion of our cybersecurity risk management and strategy, see “Item 16.K. Cybersecurity.” Furthermore, outside parties may attempt to fraudulently induce employees to divulge sensitive information to gain access to our data or our customers’ data or access credentials. Because the techniques used to obtain unauthorized access, disable or degrade services or sabotage systems change frequently and often are not recognized until attacks are launched against a target, we 21 Table of Contents may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of our cybersecurity occurs or the market perception of the effectiveness of our information security measures is compromised, this may lead to significant legal and financial exposure, including legal claims and regulatory fines and penalties, reputational harm and a loss of confidence of our customers, which could have an adverse effect on our business, financial condition and results of operations. Failure to protect our intellectual property rights could impair our competitiveness and harm our business and future prospects. We believe that developing new steel manufacturing technologies that can be differentiated from those of our competitors, such as FINEX, automotive steel manufacturing technology and high-manganese steel manufacturing technology, is critical to the success of our business. We take active measures to obtain protection of our intellectual property by obtaining patents and undertaking monitoring activities in our major markets. However, we cannot assure you that the measures we take will effectively deter competitors from improper use of our proprietary technologies. Our competitors may misappropriate our intellectual property, disputes as to ownership of intellectual property may arise and our intellectual property may otherwise become known or independently developed by our competitors. Any failure to protect our intellectual property could impair our competitiveness and harm our business and future prospects. We rely on trade secrets and other unpatented proprietary know-how to maintain our competitive position, and unauthorized disclosure of our trade secrets or other unpatented proprietary know-how could negatively affect our business. We rely on trade secrets and unpatented proprietary know-how and information. We enter into confidentiality agreements with each of our employees and consultants upon the commencement of an employment or consulting relationship. These agreements generally provide that all inventions, ideas, discoveries, improvements and patentable material made or conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made known to the individual during the term of the relationship are our exclusive property. We cannot assure the enforceability of these types of agreements, or that they will not be breached. We also cannot be certain that we will have adequate remedies for any breach. The disclosure of our trade secrets or other know-how as a result of such a breach could adversely affect our business. We face the risk of litigation proceedings relating to infringement of intellectual property rights of third parties, which, if determined adversely to us, could cause us to lose significant rights, pay significant damage awards or suspend the sale of certain products. Our success depends largely on our ability to develop and use our technology and know-how in a proprietary manner without infringing the intellectual property rights of third parties. The validity and scope of claims relating to technology and patents involve complex scientific, legal and factual questions and analysis and, therefore, may be highly uncertain. In addition, because patent applications in many jurisdictions are kept confidential for an extended period before they are published, we may be unaware of other persons’ pending patent applications that relate to our products or manufacturing processes. Accordingly, we face the risk of litigation proceedings relating to infringement of intellectual property rights of third parties. The plaintiffs in actions relating to infringement of intellectual property rights typically seek injunctions and substantial damages. Although patent and other intellectual property disputes are often settled through licensing or similar arrangements, there can be no assurance that such licenses can be obtained on acceptable terms or at all. Accordingly, regardless of the scope or validity of disputed patents or the merits of any patent infringement claims by potential or actual litigants, we may have to 22 Table of Contents engage in protracted litigation. The defense and prosecution of intellectual property suits, patent opposition proceedings and related legal and administrative proceedings can be both costly and time-consuming and may significantly divert the efforts and resources of our technical and management personnel. An adverse determination in any such litigation or proceedings could subject us to pay substantial damages to third parties, require us to seek licenses from third parties and pay ongoing royalties or redesign certain products, or subject us to injunctions prohibiting the manufacture and sale of our products or the use of technologies in certain jurisdictions. The occurrence of any of the foregoing could have a material adverse effect on our reputation, business, financial condition and results of operations. Labor laws and a recent Supreme Court decision on contract-based workers dispatched by third-party contractors could restrict flexibility in our labor management and result in an increase in our labor-related costs. In July 2022, the Supreme Court of Korea held that 59 workers employed by our third-party contractors and dispatched to our production facilities who brought a claim under the Dispatched Worker Protection Act (“DWPA”) of Korea were in a direct employment relationship with us. The DWPA limits the maximum period that a worker may be dispatched to a company to two years. Under the DWPA, worker dispatch exceeding such period may result in a company’s obligation to directly hire such dispatched workers in certain situations, including where such workers were directly supervised by the company rather than the third-party contractor. Pursuant to such judgment, we hired 55 of such workers that met our working age criteria as our full-time direct employees. In October 2022, all 59 original plaintiffs collectively filed a complaint at the Gwangju District Court claiming an aggregate amount of Won 3.0 billion as unpaid wages for the three-year period that they should have been recognized as our full-time direct employees. Furthermore, in July 2025, the 55 employees directly hired by us collectively filed a claim at the Gwangju District Court, alleging wage discrimination compared to certain other full-time direct employees. Both such lawsuits are still in progress, and we intend to vigorously defend against such lawsuits. In addition to the decision rendered by the Supreme Court in July 2022, in April 2026, the Supreme Court issued rulings in employment status lawsuits brought by 331 workers who had been dispatched to our production facilities, ruling partially against us. The Supreme Court determined that 303 of these workers were in a direct employment relationship with us, and we have hired them as full-time direct employees in accordance with the rulings. Of the remaining eight workers, one claim was dismissed due to the plaintiff exceeding the mandatory retirement age, and the cases involving the remaining seven workers have been remanded to the Gwangju High Court, where they remain pending. The plaintiffs have also jointly filed lawsuits in the Gwangju and Daegu district courts seeking unpaid wages for periods during which they claim they should have been recognized as our full-time direct employees, and these cases remain pending. As of April 21, 2026, 25 lawsuits involving approximately 4,337 workers employed by our third-party contractors who worked at our production facilities remain pending, all relating to the confirmation of employment status with us. Many of these cases also include claims for unpaid wages. In two of these cases, involving 241 and 138 workers, respectively, the district courts ruled against us, and the appellate court ruled against us in one case and partially in our favor in the other. We appealed both decisions to the Supreme Court in March 2026, and they remain pending. The plaintiffs in these cases have also filed separate lawsuits in February 2024 at the Suncheon Branch of the Gwangju District Court seeking unpaid wages, which remain pending. The remaining 23 lawsuits are pending at the district court level. We intend to vigorously defend against these claims. We cannot provide any assurance that there will not be additional lawsuits related to the employment status of workers employed by our third-party contractors who worked at our production facilities, and we have not made any provisions related to any of the pending proceedings. The application of the applicable labor law will be based on the specific facts of the cases, and the general 23 Table of Contents applicability of the July 2022 Supreme Court ruling cannot be determined with certainty at this time. However, if similar judgments were to be rendered against us, they could restrict our ability to manage our labor force flexibly and significantly increase our labor-related costs, which in turn may have a material adverse effect on our results of operations. We may be exposed to potential claims for unpaid wages and become subject to additional labor costs arising from the Supreme Court of Korea’s interpretation of ordinary wages. Under the Labor Standards Act, an employee’s “ordinary wage” is used as the basis for calculating various statutory benefits. In December 2013, the Supreme Court of Korea ruled that regularly paid bonuses, including those that are paid other than on a monthly basis, are included in the scope of employees’ ordinary wages if these bonuses are paid (i) “regularly,” (ii) “uniformly” and (iii) on a “fixed basis,” notwithstanding differential amounts based on seniority. However, in December 2024, the Supreme Court of Korea reversed its prior ruling and excluded “fixed basis” from the attributes of ordinary wage and redefined the concept and judgment criteria of what constitutes ordinary wage. According to the Supreme Court of Korea’s decision in December 2024, a wage determined to be paid regularly and uniformly in exchange for prescribed work constitutes ordinary wage regardless of the existence or fulfillment of conditions attached to it. According to such decision, wages based on tenure or on the number of working days, where payment is made only when an employee satisfies a required number of working days within the prescribed working period, are recognized as ordinary wages. However, wages conditioned on working days that exceed the prescribed working period are not regarded as ordinary wages, as they are not paid solely for performing the prescribed work but rather constitute compensation for additional work beyond the prescribed working hours. In order to minimize confusion resulting from this change, the Supreme Court of Korea also ruled that the revised legal principle will apply to ordinary wage calculations starting from the date of the ruling, which is December 19, 2024. Under this decision, any provision of a collective bargaining agreement or other agreements that attempt to exclude such regular bonuses from employees’ ordinary wages will be deemed void for violation of the mandatory provisions of Korean law. The Ministry of Employment and Labor subsequently revised the ‘Guidelines for Labor-Management Guidance on Ordinary Wage’ in February 2025 (the “Guidelines”). The new legal principle on ordinary wages is effective for ordinary wage calculations starting from December 19, 2024. While we are currently assessing the impact of the Supreme Court of Korea’s decision and the Guidelines on our regular bonuses paid in the past, if we are nonetheless determined to have underpaid employees by under-calculating their ordinary wages over the past three years or in the future, we may be liable for additional payments reflecting the expanded scope of employees’ ordinary wages. Any such additional payments may have an adverse effect on our financial condition and results of operations. Escalations in tensions with North Korea could have an adverse effect on us and the market value of our common shares and ADSs. Relations between Korea and North Korea have been tense throughout Korea’s modern history. The level of tension between Korea and North Korea has fluctuated and may increase abruptly as a result of current and future events. In particular, there have been heightened security concerns in recent years stemming from North Korea’s nuclear weapon, ballistic missile and satellite programs as well as its hostile military actions against Korea. North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and has conducted six rounds of nuclear tests since October 2006, including claimed detonations of hydrogen bombs, and warheads that can be mounted on ballistic missiles. Over the years, North Korea has continued to conduct a series of ballistic missile tests, including missiles launched from 24 Table of Contents submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. North Korea has increased the frequency of such activities since the beginning of 2022, firing numerous ballistic missiles, including intercontinental ballistic missiles, and in November 2023, successfully launched its first spy satellite. In response, the Government has repeatedly condemned North Korea’s provocations and flagrant violations of relevant United Nations Security Council resolutions. Over the years, the United Nations Security Council has passed a series of resolutions condemning North Korea’s actions and significantly expanding the scope of sanctions applicable to North Korea, as did the United States and the European Union. North Korea’s economy also faces severe challenges, which may further aggravate social and political pressures within North Korea. Although bilateral summit meetings between Korea and North Korea were held in April, May and September 2018 and between North Korea and the United States in June 2018, February 2019 and June 2019, there can be no assurance that the level of tensions affecting the Korean peninsula will not escalate in the future. Any increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high-level contacts between Korea and North Korea or between the United States and North Korea break down or military hostilities occur, could have a material adverse effect on the Korean economy and on our business, financial condition and results of operations and the market value of our common shares and ADSs. If you surrender your ADRs to withdraw shares of our common stock, you may not be allowed to deposit the shares again to obtain ADRs. Under the deposit agreement, holders of shares of our common stock may deposit those shares with the ADR depositary’s custodian in Korea and obtain ADRs, and holders of ADRs may surrender ADRs to the ADR depositary and receive shares of our common stock. However, under current Korean laws and regulations, the depositary bank is required to obtain our prior consent for the number of shares to be deposited in any given proposed deposit that exceeds the difference between (i) the aggregate number of shares deposited by us for the issuance of ADSs (including deposits in connection with the initial and all subsequent offerings of ADSs and stock dividends or other distributions related to these ADSs) and (ii) the number of shares on deposit with the depositary bank at the time of such proposed deposit. It is possible that we may not give the consent. As a result, if you surrender ADRs and withdraw shares of common stock, you may not be able to deposit the shares again to obtain ADRs. See “Item 10. Additional Information — Item 10.D. Exchange Controls.” You may not be able to exercise preemptive rights for additional shares of common stock and may suffer dilution of your equity interest in us. The Commercial Code and our articles of incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares in proportion to their existing ownership percentage whenever new shares are issued. If we issue new shares to persons other than our shareholders (See “Item 10.B. Memorandum and Articles of Association — Preemptive Rights and Issuance of Additional Shares”), a holder of our ADSs will experience dilution of such holding. If none of these exceptions is available, we will be required to grant preemptive rights when issuing additional common shares under Korean law. Under the deposit agreement governing the ADSs, if we offer any rights to subscribe for additional shares of our common stock or any rights of any other nature, the ADR depositary, after consultation with us, may make the rights available to you or use reasonable efforts to dispose of the rights on your behalf and make the net proceeds available to you. The ADR depositary, however, is not required to make available to you any rights to purchase any additional shares unless it deems that doing so is lawful and feasible and: • a registration statement filed by us under the Securities Act is in effect with respect to those shares; or • the offering and sale of those shares is exempt from or is not subject to the registration requirements of the Securities Act. 25 Table of Contents We are under no obligation to file any registration statement under the Securities Act to enable you to exercise preemptive rights in respect of the common shares underlying the ADSs, and we cannot assure you that any registration statement would be filed or that an exemption from the registration requirement under the Securities Act would be available. Accordingly, if a registration statement is required for you to exercise preemptive rights but is not filed by us, you will not be able to exercise your preemptive rights for additional shares and may suffer dilution of your equity interest in us. U.S. investors may have difficulty enforcing civil liabilities against us and our directors and senior management. We are incorporated in Korea with our principal executive offices located in Seoul. The majority of our directors and senior management are residents of jurisdictions outside the United States, and the majority of our assets and the assets of such persons are located outside the United States. As a result, U.S. investors may find it difficult to effect service of process within the United States upon us or such persons or to enforce outside the United States judgments obtained against us or such persons in U.S. courts, including actions predicated upon the civil liability provisions of the U.S. federal securities laws. It may also be difficult for an investor to enforce in U.S. courts judgments obtained against us or such persons in courts in jurisdictions outside the United States, including actions predicated upon the civil liability provisions of the U.S. federal securities laws. It may also be difficult for a U.S. investor to bring an action in a Korean court predicated upon the civil liability provisions of the U.S. federal securities laws against our directors and senior management and non-U.S. experts named in this Annual Report on Form 20-F. We engage in activities relating to countries targeted by United States, European Union and United Kingdom economic sanctions. The U.S. Department of the Treasury’s Office of Foreign Assets Control, or “OFAC,” enforces certain laws and regulations (“U.S. Sanctions”) that impose prohibitions or restrictions on U.S. persons and, in some instances, foreign entities owned or controlled by U.S. persons, with respect to activities or transactions with or involving certain countries, governments, entities and individuals that are the subject of U.S. Sanctions, including countries and territories subject to a comprehensive embargo (currently Cuba, Iran, North Korea, the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic, and the Crimea regions of Ukraine), as well as parties that are subject to, or are majority owned by one or more parties subject to, so-called blocking sanctions. U.S. persons are also generally prohibited from facilitating such activities or transactions. Similarly, the European Union enforces certain laws and regulations (“E.U. Sanctions”) that impose restrictions on nationals of E.U. member states, persons located within E.U. member states, entities incorporated or constituted under the law of an E.U. member state, or business conducted in whole or in part in E.U. member states with respect to activities or transactions with certain countries, governments, entities and individuals that are the subject of E.U. Sanctions. E.U. persons are also generally prohibited from activities that promote such activities or transactions. The United Kingdom also enforces certain laws and regulations (“UK Sanctions”) that impose restrictions upon UK persons with respect to activities or transactions with parties that are the subject of UK Sanctions. In light of recent international developments, particularly the ongoing war in Ukraine, the United States, European Union, United Kingdom and other jurisdictions have imposed enhanced sanctions targeting Russia. We and our subsidiaries engage in limited business activities in Russia. In particular, we purchase raw materials from non-Russian third parties that are sourced from mines in Russia. We believe that such activities do not involve any U.S. goods or services and otherwise do not implicate or violate U.S. Sanctions, E.U. Sanctions or UK Sanctions. To our knowledge, none of our business in Russia involves parties subject to U.S. Sanctions. Our activities in Russia accounted for 0.03% of our consolidated revenue in 2023. We did not recognize any revenue from business operations in Russia 26 Table of Contents in 2024 and 2025. In addition, we did not recognize any revenue from business operations in Iran in 2023, 2024 and 2025, and we currently do not have any plans to engage in business operations in Iran in the foreseeable future, other than collecting outstanding receivables. POSCO Steeleon Co., Ltd. (“POSCO Steeleon”), a subsidiary of POSCO, holds a 70% interest in Myanmar POSCO C&C Co., Ltd. (“Myanmar POSCO C&C”), a joint venture with Myanmar Economic Holdings Public Company Limited (“MEHL”). MEHL was designated for U.S. Sanctions on March 25, 2021. Myanmar POSCO C&C engages in the production and sale of coated steel roofing sheets in Myanmar, and its sales accounted for 0.03% of our consolidated revenue in 2023, 0.05% in 2024 and 0.05% in 2025. POSCO Steeleon is monitoring changes in Myanmar’s business environment and assessing its shareholding arrangement. U.S. Sanctions that apply to MEHL do not apply to us, POSCO, POSCO Steeleon or Myanmar POSCO C&C. POSCO INTERNATIONAL holds a 51.0% interest in a gas field project in Myanmar. Myanmar Oil and Gas Enterprise (“MOGE”) holds a 15.0% interest in the project and the remaining interests are held by non-sanctioned persons. On February 21, 2022, MOGE was designated for E.U. Sanctions, and certain managers of MOGE have been subsequently designated for U.S. Sanctions. Such sanctions do not extend to POSCO INTERNATIONAL, POSCO or, to our knowledge, the gas field project. On October 31, 2023, OFAC issued Burma-related Directive 1 under Executive Order 14014, which prohibits U.S. persons from providing, exporting or re-exporting, directly or indirectly, financial services to, or for the benefit of, MOGE, regardless of the currency in which any prohibited transaction is denominated.POSCO INTERNATIONAL is operating the Myanmar gas field project in compliance with such directive. Our revenue recognized from the gas field project accounted for 0.80% of our consolidated revenue in 2023, 0.83% in 2024 and 0.94% in 2025. We expect to continue to engage in business activities and make investments in countries or territories on which comprehensive U.S. Sanctions have been imposed and also plan to continue to engage in business in Russia. Although we believe that U.S. Sanctions, E.U. Sanctions and UK Sanctions under their current terms are not applicable to our current activities, the relevant authorities may take a different view, our reputation may be adversely affected, and some of our investors may be required to divest their investments in us, including under the laws of certain U.S. states or under internal investment policies or may decide for reputational reasons to divest such investments. We are aware of initiatives by U.S. governmental entities and U.S. institutional investors, such as pension funds, to adopt or consider adopting laws, regulations or policies prohibiting transactions with or investment in, or requiring divestment from, entities doing business with countries identified as state sponsors of terrorism. There can be no assurance that the foregoing will not occur, that sanctions regimes around the world will not change in a way that impacts our business, or that such occurrences will not have a material adverse effect on the value of our securities. U.S. investors could be subject to adverse U.S. federal income tax consequences if we are treated as a passive foreign investment company (“PFIC”) for any taxable year during which they hold our common stock of ADSs. We will be classified as a PFIC for U.S. federal income tax purposes if, for any taxable year, either (i) 75 percent or more of our gross income for the taxable year is passive income or (ii) at least 50 percent of the value of our assets (generally determined on the basis of a quarterly average) is attributable to assets that produce or are held for the production of passive income. The determination of whether we are a PFIC must be made annually based on the facts and circumstances at the relevant time, some of which may be beyond our control, including the valuation of our assets as implied by the market price for our common stock or ADSs. Accordingly, we could be classified as a PFIC in the current or a future taxable year, and that possibility may be increased significantly by market volatility or a decline in the price of our common stock or ADSs. If we were to be classified as a PFIC in any taxable year during which a U.S. holder (as defined in “Item 10.E. Taxation — United States Taxation”) holds our common stock or ADSs, such U.S. holder 27 Table of Contents could be subject to a special tax at ordinary income rates on “excess distributions,” including certain distributions by us and gain that the U.S. holder recognizes on the sale of our common stock or ADSs. The amount of income tax on any excess distributions would be increased by an interest charge to compensate for tax deferral, calculated as if the excess distributions were earned ratably over the period the U.S. holder held the common stock or ADSs. See “Item 10.E. Taxation — United States Taxation — Shares of Common Stock and ADSs — Passive Foreign Investment Company Rules.” This annual report contains “forward-looking statements” that are subject to various risks and uncertainties. This annual report contains “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about our company and our industry. The forward-looking statements are subject to various risks and uncertainties. These forward-looking statements include, but are not limited to, those statements using words such as “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project,” “aim,” “plan,” “likely to,” “target,” “contemplate,” “predict,” “potential” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions generally intended to identify forward-looking statements. Those statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be incorrect. The uncertainties in this regard include, but are not limited to, those identified in the risk factors discussed above. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans and objectives or projected financial results referred to in any of the forward-looking statements. We do not undertake to release the results of any revisions of these forward-looking statements to reflect future events or circumstances. Item 4. Information on the Company

We were established by the Government on April 1, 1968, under the Commercial Code, to manufacture and distribute steel rolled products and plates in the domestic and overseas markets. The Government owned more than 70% of our equity until 1988, when the Government reduced its ownership of our common stock to 35% through a public offering and listing our shares on the KRX KOSPI Market. In December 1998, the Government sold all of our common stock it owned directly, and The Korea Development Bank completed the sale of our shares that it owned in September 2000. The Government no longer holds any direct interest in us, and our outstanding common stock is currently held by individuals and institutions. See “Item 7. Major Shareholders and Related Party Transactions — Item 7A. Major Shareholders.” On March 1, 2022, we spun off our domestic steel production and sales business (through a vertical spin-off in accordance with Articles 530-2 through 530-12 of the Korean Commercial Code) to establish a wholly-owned subsidiary (POSCO), and we converted into a holding company (POSCO HOLDINGS INC.) within the meaning of the Monopoly Regulation and Fair Trade Act in order to more effectively promote the growth of the group’s businesses, enhance synergies among the group’s businesses and actively explore diversification opportunities in promising business areas. The registration of the Spin-off occurred on March 2, 2022. As part of the Spin-off, we amended our name from POSCO to POSCO HOLDINGS INC., and the newly created wholly-owned subsidiary was named POSCO. 28 Table of Contents Our legal and commercial name is POSCO HOLDINGS INC. Our principal executive offices are located at POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea 06194, and our telephone number is +82-2-3457-0114. The address of our English website is http://www.posco-inc.com. The SEC maintains a website (http://www.sec.gov), which contains reports, information statements and other information regarding issuers that file electronically with the SEC. Item 4.B. Business Overview The Company We are a holding company, and we operate through our consolidated subsidiaries including POSCO, one of the largest steel producers in the world. We also engage in businesses that complement our steel manufacturing operations and also carefully seek out promising investment opportunities to diversify our businesses both vertically and horizontally. One of our principal strategies is to take advantage of our holding company structure to invest in promising businesses. We have made investments in the past decade to secure new growth engines by diversifying into new businesses related to our steel operations that we believe will offer greater potential returns, as well as entering into new businesses not related to our steel operations. We have six reportable segments as follows: • Steel Segment. Our Steel Segment includes the production and sale of steel products. • Infrastructure Business. Our Infrastructure Business includes our businesses related to provision of infrastructure and related services. Such business is divided into three segments as follows: Ø Trading Segment. The Trading Segment of our Infrastructure Business consists primarily of the global trading activities, natural resources development activities and power generation activities of POSCO INTERNATIONAL. POSCO INTERNATIONAL exports and imports a wide range of steel products that are both obtained from and supplied to POSCO, as well as steel and other products from and to other suppliers and purchasers in Korea and overseas. On January 1, 2023, POSCO Energy, Korea’s largest domestic private power utility company and a provider of alternative low-carbon energy solutions, merged into POSCO INTERNATIONAL. Ø Construction Segment. The Construction Segment of our Infrastructure Business consists primarily of the planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings, both in Korea and overseas, by POSCO E&C. Ø Logistics and Others Segment. The Logistics and Others Segment of our Infrastructure Business consists primarily of the information technology and operational technology services of POSCO DX and the integrated logistics services of POSCO FLOW. • Rechargeable Battery Materials Segment. Our Rechargeable Battery Materials Segment includes (i) the manufacturing and sale of various energy-related and other industrial materials by POSCO Future M, including cathode and anode materials for rechargeable batteries and (ii) investments made by us in production projects relating to other materials such as lithium. • Others Segment. Our Others Segment includes POSCO HOLDINGS INC. and all other entities which fall below the reporting thresholds. POSCO HOLDINGS INC. actively explores diversification opportunities in promising business areas. 29 Table of Contents The table below sets out our revenue by segment category for the periods indicated. For the Year Ended December 31, 2023 2024 2025 Segments Billions of Won % Billions of Won % Billions of Won % Steel Segment W 40,393 52.4 % W 39,104 53.3 % W 37,285 54.1 % Infrastructure Business: Trading Segment (1) 24,034 31.2 22,804 31.0 23,744 34.4 Construction Segment 8,301 10.8 7,473 10.2 5,615 8.1 Logistics and Others Segment (2) 471 0.6 422 0.6 309 0.4 Rechargeable Battery Materials Segment 3,816 5.0 2,813 3.8 2,096 3.0 Others Segment 113 0.1 73 0.1 45 0.1 Basis difference adjustments(3) (71 ) (0.1 ) 771 1.0 (108 ) (0.1 ) Total W 77,057 100.0 % W 73,459 100.0 % W 68,987 100.0 % (1) Including POSCO INTERNATIONAL. (2) Including POSCO DX and POSCO FLOW. (3) Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment of our Infrastructure Business in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. Environmental, Social and Governance Our Environmental, Social and Governance (“ESG”) management focuses on sustainable social communities and governance enhancements that promote tangible value. These principles drive our five comprehensive ESG strategies covering the following key areas. Green Competency We strive to respond to global climate change through development of low-carbon processes, energy efficiency and low-carbon products and services, thereby reducing our environmental impact to create a future in which people and nature co-exist and thrive together. POSCO declared the 2050 Carbon Neutrality Roadmap by setting targets for a 30% carbon emissions reduction by 2035, 50% by 2040, and Net Zero emissions by 2050. Initiatives such as low carbon technology and hydrogen reduction are underway to support these goals. Responsible Value Chain We are committed to empowering our business partners to obtain the highest standards in various domains, including low carbon technology, human rights and safety, while promoting sustainability across the value chain. POSCO procures all tin, tantalum, tungsten and gold minerals from refineries in conflict-affected and high-risk areas that have obtained Responsible Minerals Assurance Process (“RMAP”) certification. POSCO Future M, a producer of rechargeable battery materials, also procures tungsten and cobalt, sourcing exclusively from smelters that have either obtained RMAP certification or are currently in the process of obtaining RMAP certifications. Employee Happiness We prioritize establishing a secure and inclusive work environment that upholds human rights, embraces diversity and empowers creative talents to lead a period of transformation. As United Nations Global Compact members, POSCO HOLDINGS INC., POSCO, POSCO INTERNATIONAL 30 Table of Contents and POSCO E&C, advocate for management based on human rights, diversity and inclusion policies. In addition, POSCO Group proclaimed a “Group Human Rights Commitment” to implement human rights management in line with global standards and to establish a more structured human rights management system at the group level. Our human rights policy covers protections for POSCO Group employees and staffs of our suppliers and labor union rights, encompassing human rights, grievance handling and victim relief. Our diversity, equality and inclusion policies prohibit all forms of discrimination, workplace harassment and sexual harassment, with training, reporting, consultation and investigation processes, as well as whistleblower protection measures that are clearly outlined. Ethics & Integrity We are committed to making our business decisions based on unwavering ethical principles by upholding the highest standards of ethics and compliance. Our efforts to enhance ethics and compliance levels are complemented by our commitment to promoting fair trade practices. For example, we established a “Clean Committee,” which is an advisory body involving external experts, to strengthen our commitment to ethical management. We conduct annual questionnaire surveys targeting employees of our suppliers and our domestic and overseas subsidiaries to assess the risk of unethical behavior, workplace harassment and human rights violations. Additional monitoring and investigation are conducted when risks are identified. New Governance for Real Value We enhance independence, expertise and diversity of the board of directors to promote real value management by safeguarding shareholder rights and ensuring transparent disclosures, with the aim of enhancing the value of the POSCO Group. A group-level ESG risk response system has been established to address internal and external risks effectively, with significant ESG-related decisions made through the board of directors. For in-depth discussions on key ESG issues, we operate the “POSCO Group ESG Council,” led by top management and the “ESG Session” involving all directors. Additional information regarding our ESG performance is provided in the POSCO Holdings Sustainability Report, available on our website. This report is not incorporated by reference into, and does not form part of, this Annual Report on Form 20-F. Steel Segment POSCO is the largest fully integrated steel producer in Korea, and one of the largest steel producers in the world, based on annual crude steel production. We, through POSCO and our other steel-producing subsidiaries, produced approximately 38.6 million tons of crude steel in 2025, a significant majority of which was produced at Pohang Works and Gwangyang Works. As of December 31, 2025, we had approximately 44.5 million tons of annual crude steel production capacity, including 39.8 million tons of production capacity in Korea. We believe Pohang Works and Gwangyang Works are two of the most technologically-advanced integrated steel facilities in the world. We manufacture and sell a diversified line of steel products, including cold rolled and hot rolled products, stainless steel products, plates, wire rods and silicon steel sheets, and we are able to meet a broad range of customer needs from manufacturing industries that consume steel, including automotive, shipbuilding, home appliance, engineering and machinery industries. POSCO M-TECH Co., Ltd., which is also included in the Steel Segment, produces aluminum deoxidizers used to remove excess oxygen during the steel manufacturing process to improve durability of steel products, and it also provides integrated steel product packaging solutions for steel production facilities. Korea is our most important market. Domestic sales accounted for 38.3% of the Steel Segment’s total revenue in 2025 and 37.2% in 2024. We believe that POSCO’s steel products 31 Table of Contents constituted approximately 46.6% of the total sales volume of such steel products sold in Korea in 2025 and approximately 46.0% in 2024. The Steel Segment’s export sales and overseas sales to customers abroad accounted for 61.7% of the Steel Segment’s total revenue in 2025 and 62.8% in 2024. The Steel Segment’s major export market is Asia, with Asia other than China and Japan accounting for 22.5%, China accounting for 19.0% and Japan accounting for 11.0% of the Steel Segment’s total steel export revenue in 2025, and Asia other than China and Japan accounting for 23.2%, China accounting for 20.7% and Japan accounting for 11.2% of the Steel Segment’s total steel export revenue in 2024. Major Products We, through POSCO and our other steel-producing subsidiaries, manufacture and sell a broad line of steel products, including the following: • cold rolled products; • hot rolled products; • stainless steel products; • plates; • wire rods; and • silicon steel sheets. The table below sets out our revenue of steel products produced by us and directly sold to external customers which are recognized as external revenue of the Steel Segment, by major steel product category for the periods indicated. Such amounts do not include steel products produced by us and sold to our consolidated sales subsidiaries (including POSCO INTERNATIONAL). For the Year Ended December 31, 2023 2024 2025 Steel Products Billions of Won % Billions of Won % Billions of Won % Cold rolled products W 11,908 29.5 % W 12,194 31.2 % W 11,919 32.0 % Hot rolled products 9,149 22.6 8,525 21.8 7,927 21.3 Stainless steel products 7,848 19.4 7,485 19.1 6,985 18.7 Plates 4,930 12.2 4,472 11.4 4,172 11.2 Wire rods 1,804 4.5 1,676 4.3 1,428 3.8 Silicon steel sheets 1,063 2.6 1,158 3.0 1,130 3.0 Sub-total 36,701 90.9 35,511 90.8 33,561 90.0 Others 3,692 9.1 3,593 9.2 3,724 10.0 Total W 40,393 100.0 % W 39,104 100.0 % W 37,285 100.0 % 32 Table of Contents The table below sets out our sales volume of the principal categories of steel products produced by us and directly sold to external customers, which are recognized as external sales volume of the Steel Segment, by major steel product category for the periods indicated. Such amounts do not include steel products produced by us and sold to our sales consolidated subsidiaries (including POSCO INTERNATIONAL). For the Year Ended December 31, 2023 2024 2025 Steel Products Thousands of Tons % Thousands of Tons % Thousands of Tons % Cold rolled products 9,780 33.9 % 10,334 35.4 % 10,529 36.4 % Hot rolled products 9,784 33.9 9,473 32.5 9,583 33.1 Stainless steel products 2,459 8.5 2,508 8.6 2,364 8.2 Plates 4,667 16.2 4,694 16.1 4,523 15.6 Wire rods 1,623 5.6 1,527 5.2 1,309 4.5 Silicon steel sheets 524 1.8 627 2.1 641 2.2 Total (1) 28,837 100.0 % 29,162 100.0 % 28,949 100.0 % (1) Not including sales volume of steel products categorized under “others.” In addition to steel products produced by us and directly sold to external customers, we engage our consolidated sales subsidiaries (including POSCO INTERNATIONAL) to sell our steel products produced by us. Our revenue from steel products produced by us and sold to our consolidated sales subsidiaries that in turn sold them to their external customers amounted to Won 9,414 billion in 2023, Won 9,452 billion in 2024 and Won 8,801 billion in 2025. Sales of such steel products by our consolidated sales subsidiaries to external customers are recognized as external revenue of the Trading Segment of our Infrastructure Business. Cold Rolled Products Cold rolled coils and further refined galvanized cold rolled products are used mainly in the automotive industry to produce car body panels. Other users include the household goods, electrical appliances, engineering and metal goods industries. Our deliveries of cold rolled products produced by us and directly sold to external customers amounted to 10,529 thousand tons in 2025, representing 36.4% of our total sales volume of principal steel products produced by us and directly sold to external customers. Cold rolled products constitute our largest product category in terms of sales volume and revenue from steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for cold rolled products of approximately 54% in 2025. Hot Rolled Products Hot rolled coils and sheets have many different industrial applications. They are used to manufacture structural steel used in the construction of buildings, industrial pipes and tanks, and automobile chassis. Hot rolled coil is also manufactured in a wide range of widths and thicknesses as the feedstock for higher value-added products such as cold rolled products and silicon steel sheets. The largest customers of our hot rolled products are downstream steelmakers in Korea which use the products to manufacture pipes and cold rolled products. Our deliveries of hot rolled products produced by us and directly sold to external customers amounted to 9,583 thousand tons in 2025, representing 33.1% of our total sales volume of principal steel products produced by us and directly sold to external customers. Hot rolled products constitute 33 Table of Contents our second largest product category in terms of sales volume and revenue from steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for hot rolled products of approximately 54% in 2025. Stainless Steel Products Stainless steel products are used to manufacture household goods and are also used by the chemical industry, paper mills, the aviation industry, the automotive industry, the construction industry and the food processing industry. Our deliveries of stainless steel products produced by us and directly sold to external customers amounted to 2,364 thousand tons in 2025, representing 8.2% of our total sales volume of principal steel products produced by us and directly sold to external customers. Stainless steel products constitute our third largest product category in terms of revenue from steel products produced by us and directly sold to external customers. Although sales of stainless steel products accounted for only 8.2% of total sales volume of the principal steel products produced by us and directly sold to external customers in 2025, they represented 18.7% of our total revenue from such steel products in 2025. We believe POSCO had a domestic market share for stainless steel products of approximately 52% in 2025. Plates Plates are used in shipbuilding, structural steelwork, offshore oil and gas production, power generation, mining, and the manufacture of earth-moving and mechanical handling equipment, boiler and pressure vessels and other industrial machinery. The Korean shipbuilding industry, which uses plates to manufacture chemical tankers, rigs, bulk carriers and containers, and the construction industry are our largest customers of plates. Our deliveries of plates produced by us and directly sold to external customers amounted to 4,523 thousand tons in 2025, representing 15.6% of our total sales volume of principal steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for plates of approximately 45% in 2025. Wire Rods Wire rods are used mainly by manufacturers of wire, fasteners, nails, bolts, nuts and welding rods. Wire rods are also used in the manufacture of coil springs, tension bars and tire cords in the automotive industry. The largest customers for our wire rods are manufacturers of wire ropes and fasteners. Our deliveries of wire rods produced by us and directly sold to external customers amounted to 1,309 thousand tons in 2025, representing 4.5% of our total sales volume of principal steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for wire rods of approximately 44% in 2025. Silicon Steel Sheets Silicon steel sheets are used mainly in the manufacture of power transformers and generators, rotating machines and electric motors. Our deliveries of silicon steel sheets produced by us and directly sold to external customers amounted to 641 thousand tons in 2025, representing 2.2% of our total sales volume of principal steel products produced by us and directly sold to external customers. 34 Table of Contents We believe POSCO had a domestic market share for silicon steel sheets of approximately 71% in 2025. Others Other products include lower value-added semi-finished products such as pig iron, billets, blooms and slab. Markets Korea is our most important market. Domestic sales represented 38.3% of the Steel Segment’s total revenue in 2025. The Steel Segment’s export sales and overseas sales to customers abroad represented 61.7% of the Steel Segment’s total revenue in 2025. Our sales strategy has been to devote our production primarily to satisfy domestic demand, while seeking export sales to utilize capacity to the full extent and to expand our international market presence. Domestic Market We primarily sell in Korea higher value-added and other finished products to end-users and semi-finished products to other steel manufacturers for further processing. Local distribution companies and sales affiliates sell finished steel products to low-volume customers. We provide service technicians for large customers and distributors in each important product area. The table below sets out our estimate of the market share of our steel products in Korea for the periods indicated based on sales volume. For the Year Ended December 31, Source 2023 2024 2025 POSCO’s sales (1) 45.5 % 46.0 % 46.6 % Other domestic steel companies’ sales 28.2 28.4 30.4 Imports 26.3 25.6 23.0 Total 100.0 % 100.0 % 100.0 % (1) POSCO’s sales volume includes steel products produced by POSCO (but not by our other subsidiaries) and sold through our consolidated sales subsidiaries as well as steel products produced by POSCO (but not by our other subsidiaries) and directly sold to external customers. Exports The Steel Segment’s export sales and overseas sales to customers abroad represented 61.7% of the Steel Segment’s total revenue in 2025, 52.5% of which was generated from exports sales and overseas sales to customers in Asian countries. The Steel Segment’s export sales and overseas sales to customers abroad in terms of such revenue decreased by 6.9% from Won 31,829 billion in 2024 to Won 29,627 billion in 2025. 35 Table of Contents The tables below set out our export sales and overseas sales to customers abroad in terms of revenue from steel products produced and sold by us (including our consolidated sales subsidiaries), by geographical market and by major product category for the periods indicated. For the Year Ended December 31, 2023 2024 2025 Region Billions of Won % Billions of Won % Billions of Won % Asia (other than China and Japan) W 7,787 24.6 % W 7,382 23.2 % W 6,662 22.5 % China 6,859 21.7 6,576 20.7 5,642 19.0 Europe 4,099 12.9 4,638 14.6 4,399 14.8 Japan 3,345 10.6 3,578 11.2 3,246 11.0 North America 2,673 8.4 2,861 9.0 2,302 7.8 Middle East 57 0.2 3 0.0 0 0.0 Others 6,838 21.6 6,792 21.3 7,376 24.9 Total W 31,658 100.0 % W 31,829 100.0 % W 29,627 100.0 % For the Year Ended December 31, 2023 2024 2025 Steel Products Billions of Won % Billions of Won % Billions of Won % Cold rolled products W 11,505 36.3 % W 12,177 38.3 % W 11,769 39.8 % Hot rolled products 6,305 19.9 6,061 19.1 5,679 19.2 Stainless steel products 6,055 19.1 5,827 18.3 5,479 18.5 Plates 3,374 10.7 3,191 10.0 1,991 6.7 Silicon steel sheets 1,066 3.4 1,316 4.1 1,343 4.5 Wire rods 879 2.8 834 2.6 722 2.4 Others 2,475 7.8 2,423 7.6 2,644 8.9 Total W 31,658 100.0 % W 31,829 100.0 % W 29,627 100.0 % We distribute our export products mostly through Korean trading companies, including POSCO INTERNATIONAL, and our overseas sales subsidiaries. Our largest export market in 2025 was Asia (other than China and Japan), which accounted for 22.5% of our export revenue from steel products produced and sold by us. The principal products exported to Asia (other than China and Japan) were cold rolled products, including continuous galvanized products. Our exports to Asia (other than China and Japan) decreased by 9.8% from Won 7,382 billion in 2024 to Won 6,662 billion in 2025 primarily reflecting a general decline in demand from the region. Our second largest export market in 2025 was China, which accounted for 19.0% of our export revenue from steel products produced and sold by us. The principal products exported to China were stainless steel products. Our exports to China decreased by 14.2% from Won 6,576 billion in 2024 to Won 5,642 billion in 2025 primarily due to a slowdown in economic activity in China. Anti-Dumping, Safeguard and Countervailing Duty Proceedings Our subsidiaries sell a significant portion of their products outside Korea as well as engage in trading activities worldwide, and, from time to time, we are involved in trade remedy proceedings in various jurisdictions. We actively participate in such proceedings to minimize adverse effects and related risks. Although trade remedy actions and regulatory scrutiny have increased in recent years, such cases have historically been limited in scope relative to our overall global sales and operations. Through our trade affairs office, we continue to closely monitor developments in trade remedy policies, including anti-dumping duties, safeguard duties, countervailing duties, quotas and tariffs, in all major markets in which we operate, and seek to mitigate related risks by adjusting supply chains, production and export arrangements and, where necessary, defend our interests. However, there can be no assurance that free trade agreements between Korea and its major trading partners 36 Table of Contents will remain unchanged, or that new or increased anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs will not be imposed on our products in the future. The occurrence of any such events, including those described below, may have a material adverse effect on our business, financial condition and results of operations. In February 2025, the President of the United States removed certain country-specific exemptions, including those applicable to the Republic of Korea, reinstating a 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%, effective March 2025. In June 2025, these tariffs were further increased from 25% to 50%. U.S. tariff policies remain subject to change, and tariffs applicable to Korean-origin products have fluctuated over time and may be increased or decreased in the future. Furthermore, other countries have implemented, and may continue to implement, retaliatory tariffs or other trade restrictions in response to U.S. trade actions. For a discussion of our export sales and overseas sales to customers in North America, which includes the United States and Canada, see “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment – Markets – Exports.” While our direct exports to customers in the United States represent a limited portion of our total sales, such measures may materially affect our downstream customers that manufacture finished products using our products in countries subject to such tariffs and export those products to the United States or other markets subject to similar trade measures. Increases in tariffs or other trade barriers applicable to products manufactured by our downstream customers may lead to higher prices, reduced competitiveness or lower end-market demand, which may in turn adversely affect demand for our products. Historically, tariffs have led to increased trade and political tensions. In response to the recent tariffs imposed by the U.S. government, various countries have implemented, or have announced plans to implement, retaliatory tariffs on goods produced in the United States. These retaliatory measures, along with the broader trend of unilateral trade actions, could trigger a cycle of trade disputes. Such political and economic tensions as a result of trade policies could reduce trade volume, investment, technological exchange and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. Consequently, there can be no assurance that our proactive mitigation measures will be sufficient to offset the risks of evolving trade policies. If further tariffs are imposed on a broader range of our exports or our customers’ exports, or if further retaliatory trade measures are adopted by affected countries, we or our customers may be required to adjust pricing, modify supply or sourcing arrangements or incur additional costs, any of which may have a material adverse impact on our business, financial condition and results of operations. Pricing Policy We determine the pricing of our products based on market conditions, taking into consideration production outlook of the global steel industry and global economic conditions in general. In setting prices, we take into account our costs, including those of raw materials, supply and demand in the Korean market, exchange rates, and conditions in the international steel market. Our prices can fluctuate considerably over time, depending on market conditions and other factors. The prices of our higher value-added steel products in the largest markets are determined considering the prices of similar products charged by our competitors. Raw Materials Steel Production The principal raw materials used in producing steel through the basic oxygen steelmaking method are iron ore and coal. We import all of the coal and virtually all of the iron ore that we use. In 37 Table of Contents 2025, POSCO imported approximately 49 million dry metric tons of iron ore and 24 million wet metric tons of coal. Iron ore is imported primarily from Australia, Brazil and Canada. Coal is imported primarily from Australia, Canada and the United States. We purchase a substantial portion of our iron ore and coal imports pursuant to long-term contracts. Our long-term supply contracts generally have terms of three to ten years and provide for periodic price adjustments to the then-market prices. We typically adjust the prices on a quarterly basis and maintain approximately one month of inventory of raw materials. Such price adjustments are driven by various factors, including the global economic outlook, global market prices of raw materials and steel products, supply and demand outlook of raw materials and production costs of raw materials. For both coal and iron ore, we typically agree on the purchase price with the suppliers primarily based on the spot market price periodically announced by Platts (Premium Low Vol Coking Coal, FOB Australia Index and Iron Ore 62% Fe, CFR China Index). We or the suppliers may cancel the long-term contracts only if performance under the contracts is prevented by causes beyond our or their control and these causes continue for a specified period. We also engage in exploration and production projects abroad to enhance our ability to meet the requirements for high-quality raw materials, by acquiring mining rights of raw materials or by investing in projects either as part of a consortium or through an acquisition of a minority interest. In 2025, we purchased approximately 37% of our iron ore imports and 25% of our coal imports from foreign mines in which we have made investments. Our major investments to procure supplies of coal, iron ore and nickel are primarily located in Australia, Canada, Brazil and New Caledonia. We will continue to selectively seek opportunities to enter into additional strategic relationships that would enhance our ability to meet the requirements for principal raw materials. The average market price of iron ore per dry metric ton (Iron Ore 62% Fe, CFR China Index announced by Platts) was US$120 in 2023, US$109 in 2024 and US$102 in 2025. The average market price of coal per wet metric ton (Premium Low Vol Coking Coal, FOB Australia Index announced by Platts) was US$296 in 2023, US$240 in 2024 and US$188 in 2025. We currently do not depend on any single country or supplier for our coal or iron ore. Stainless Steel Production The principal raw materials for the production of stainless steel are ferronickel, ferrochrome and stainless steel scrap. We purchase a majority of our ferronickel primarily from suppliers in Korea that procure nickel ore from New Caledonia, and the remainder primarily from leading suppliers in Indonesia. Our primary suppliers of ferrochrome are located in South Africa, India and Kazakhstan. Our stainless steel scraps are primarily supplied by domestic and overseas suppliers in Japan and Southeast Asia. Revert scraps from the Pohang Steelworks and our overseas subsidiaries are also used for our stainless steel production. The average market price of nickel per ton on the London Metal Exchange was US$21,474 in 2023, US$16,812 in 2024 and US$15,160 in 2025. Transportation In order to meet our transportation needs for iron ore and coal, we have entered into long-term contracts with shipping companies. Such contracts are performed by a fleet of dedicated vessels on a consecutive voyage basis with fully loaded cargo for each voyage. These vessels under long-term contracts transported approximately 59% of the total requirements in 2025, and the remaining approximately 41% was transported by vessels sourced through short- to medium-term contracts, depending on market conditions. We plan to continue to optimize the fleet of dedicated vessels that we use in order to cope with changes in the global shipping environment, as well as upgrade some of the existing vessels with energy-saving and eco-friendly technologies. 38 Table of Contents The Steelmaking Process POSCO’s major production facilities, Pohang Works and Gwangyang Works, produce steel by the basic oxygen steelmaking method. The stainless steel plant at Pohang Works produces stainless steel by the electric arc furnace method. Continuous casting improves product quality by imparting a homogenous structure to the steel. Pohang Works and Gwangyang Works produce all of their products through the continuous casting. Steel — Basic Oxygen Steelmaking Method First, molten pig iron is produced in a blast furnace from iron ore, which is the basic raw material used in steelmaking. Molten pig iron is then refined into molten steel in converters by blowing pure oxygen at high pressure to remove impurities. Different desired steel properties may also be obtained by regulating the chemical contents. At this point, molten steel is made into semi-finished products such as slabs, blooms or billets at the continuous casting machine. Slabs, blooms and billets are produced at different standardized sizes and shapes. Slabs, blooms and billets are semi-finished lower-margin products that we either use to produce our further processed products or sell to other steelmakers that produce further processed steel products. Slabs are processed to produce hot rolled coil products at hot strip mills or to produce plates at plate mills. Hot rolled coils are an intermediate-stage product that may either be sold to our customers as various finished products or be further processed by us or our customers into higher value-added products, such as cold rolled sheets and silicon steel sheets. Blooms and billets are processed into wire rods at wire rod mills. Stainless Steel — Electric Arc Furnace Method Stainless steel is produced from stainless steel scrap, chrome, nickel and steel scrap using an electric arc furnace. Stainless steel is then processed into higher value-added products by methods similar to those used for steel production. Stainless steel slabs are produced at a continuous casting mill. The slabs are processed at hot rolling mills into stainless steel hot coil, which can be further processed at cold strip mills to produce stainless cold rolled steel products. Steel Making Operations Located Outside Korea In order to effectively implement our strategic initiatives and to solidify our leadership position in the global steel industry, we have established various subsidiaries and joint ventures in Korea and elsewhere around the world that engage in steel production activities. China. We entered into an agreement with Shagang Group Co. to establish POSCO (Zhangjiagang) Stainless Steel Co., Ltd. (“POSCO (Zhangjiagang)”), a joint venture company in China for the manufacture and sale of stainless cold rolled steel products. POSCO HOLDINGS INC. has an 82.5% interest in the joint venture (including 23.9% interest held by POSCO China Holding Corporation). POSCO (Zhangjiagang) commenced production of stainless cold rolled steel products in December 1998. In 2025, POSCO (Zhangjiagang) had an annual production capacity of 1,100 thousand tons of stainless steel products. We resolved to sell our equity interest in POSCO (Zhangjiagang) at the meeting of the board of directors held in July 2025. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — POSCO (Zhangjiagang).” Indonesia. We entered into an agreement with PT. Krakatau Steel (Persero) Tbk. to establish PT. KRAKATAU POSCO Co., Ltd. (“PT. KRAKATAU POSCO”), a joint venture company in Indonesia for the manufacture and sale of plates and slabs. POSCO holds a 50.0% interest in the joint venture. We completed the construction of a steel manufacturing plant in December 2013. In 2025, PT. 39 Table of Contents KRAKATAU POSCO had an annual production capacity of 3,000 thousand tons of slabs, plates and hot rolled coils. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — PT. KRAKATAU POSCO.” Vietnam. We established POSCO YAMATO VINA STEEL JOINT STOCK COMPANY (“POSCO YAMATO VINA” and formerly known as POSCO SS VINA JOINT STOCK COMPANY), a subsidiary engaged in the manufacture and sale of shape steel and steel reinforcement products. POSCO holds a 51.0% interest in POSCO YAMATO VINA, and the plant became operational in June 2015. In 2025, POSCO YAMATO VINA had an annual production capacity of 550 thousand tons of shape steel products. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — POSCO YAMATO VINA.” Competition Domestic Market POSCO is the largest fully integrated steel producer in Korea. In hot rolled products, where we believe POSCO had a domestic market share of approximately 54% in 2025, we face competition from Hyundai Steel Co., Ltd. and from various foreign producers, primarily from China and Japan. In cold rolled products and stainless steel products, where we believe POSCO had domestic market shares of approximately 54% and 52%, respectively, in 2025, we compete with Hyundai Steel Co., Ltd., smaller specialized domestic manufacturers and various foreign producers, primarily from China and Japan. For a discussion of domestic market shares, see “— Markets — Domestic Market.” The Government has imposed provisional anti-dumping duties on certain thick steel plates and stainless-steel plates from China. Export Markets The competitors in our export markets include all the leading steel manufacturers of the world. In the past decade, there has been a trend toward industry consolidation among our competitors, and smaller competitors in the global steel market today may become larger competitors in the future. In recent years, a slowdown in domestic demand for steel products in China resulting from slowed economic growth, combined with an expansion in steel production capacity, has led to production over-capacity in the Chinese steel industry, which in turn has led the Chinese government to pursue aggressive consolidation in the Chinese steel industry that has resulted in fewer but larger steel manufacturers that are able to compete more effectively in the global steel industry. Competition from global steel manufacturers with significant production capacity such as ArcelorMittal S.A. and Nippon Steel & Sumitomo Metal Corporation, as well as competitors from emerging markets, especially from China and India, could result in a significant increase in competition. Major competitive factors include range of products offered, quality, price, delivery performance and customer service. Our larger competitors may use their resources, which may be greater than ours, against us in a variety of ways, including by making additional acquisitions, investing more aggressively in product development and capacity and displacing demand for our export products. Various export markets currently impose tariffs on different types of steel products. Through pursuing direct investments in high-growth overseas markets and leveraging our overseas production subsidiaries, we seek to improve our ability to respond to country-specific trade regulations and market dynamics while reinforcing our global competitiveness. Infrastructure Business Trading Segment Our trading activities consist primarily of trading activities of POSCO INTERNATIONAL. POSCO INTERNATIONAL is a global trading company that primarily engages in trading of steel and raw 40 Table of Contents materials, investing in energy and mineral development projects and operating power generation facilities. It also trades textiles, agricultural commodities and other goods. POSCO INTERNATIONAL’s sales consist of third-country trading sales, export trading sales and domestic trading sales. On January 1, 2023, POSCO Energy, Korea’s largest domestic private power utility company and a provider of alternative environmentally-friendly energy solutions, merged into POSCO INTERNATIONAL. The following table sets forth a breakdown of POSCO INTERNATIONAL’s total consolidated revenue by export sales, domestic sales and third-country trades for the periods indicated: For the Year Ended December 31, Revenue Category 2023(1) 2024(1) 2025(1) (in billions of Won, except percentages) Export trading revenue W 12,462 37.8 % W 12,416 38.5 % W 11,580 35.8 % Domestic trading revenue 4,412 13.4 5,983 18.6 4,849 15.0 Third-country trades 26,269 79.6 24,611 76.3 26,191 81.0 Total revenue prior to consolidation adjustments 43,142 130.7 43,010 133.4 42,620 131.8 Consolidation adjustments (10,136 ) (30.7 ) (10,761 ) (33.4 ) (10,279 ) (31.8 ) Total revenue W 33,006 100.0 % W 32,249 100.0 % W 32,341 100.0 % (1) Including revenue from the power generation business of POSCO Energy, which merged into POSCO INTERNATIONAL on January 1, 2023. Trading Activities. POSCO INTERNATIONAL’s trading activities consist of exporting and importing a wide variety of products and commodities, including iron and steel, raw materials for steel production, non-ferrous metals, chemicals, automotive parts (including motor cores), machinery and plant equipment, electronics products, agricultural commodities and textiles. POSCO INTERNATIONAL is also engaged in third-country trade that does not involve exports from or imports to Korea. The products are obtained from and supplied to numerous suppliers and purchasers in Korea and overseas, which are procured through a global trading network comprised of overseas trading subsidiaries, branches and representative offices. Such subsidiaries and offices support POSCO INTERNATIONAL’s trading activities by locating suitable local suppliers and purchasers on behalf of customers, identifying business opportunities and providing information regarding local market conditions. In most cases, POSCO INTERNATIONAL enters into trading transactions after the underlying sale and purchase contracts have been matched, which mitigates inventory and price risks to POSCO INTERNATIONAL. POSCO INTERNATIONAL typically enters into trading transactions as a principal, and in limited cases as an import or export agent. When acting as a principal or an agent, POSCO INTERNATIONAL derives its gross trading profit from the margin between the selling price of the products and the purchase price it pays for such products. In the case of principal transactions, the selling price is recognized as sales and the purchase price is recognized as cost of sales, while only the margin is recognized as sales in the case of agency transactions in which POSCO INTERNATIONAL does not control each good or service prior to providing the goods or services to the customer (indicators of such control include (1) primary responsibility for fulfilling the promise to provide the specified good or service, (2) inventory risk and (3) discretion in establishing the price of the specified good or service). In the instances in which it acts as an arranger for a third country transaction, POSCO INTERNATIONAL derives its gross trading profit from, and recognizes as sales, the commission paid to it by the customer. The sizes of margins and commissions for POSCO INTERNATIONAL’s trading activities vary depending on a number of factors, including prevailing supply and demand conditions for the product involved, the cost of financing, insurance, storage and transport and the creditworthiness of the customer, and tends to decline as the product or market matures. 41 Table of Contents In connection with its export and import transactions, POSCO INTERNATIONAL has trade accounts and notes receivable and payable in a number of currencies, but principally in U.S. dollars. POSCO INTERNATIONAL’s exposure to fluctuations in exchange rates, including the Won/U.S. dollar exchange rate, is limited because trading transactions typically involve matched purchase and sale contracts, which result in limited settlement exposure, and because POSCO INTERNATIONAL’s contracts with domestic suppliers of products for export and with domestic purchasers of imported products are generally denominated in U.S. dollars. Although the impact of exchange rate fluctuations is substantially mitigated by such strategies, POSCO INTERNATIONAL also periodically enters into derivative contracts, primarily currency forward contracts, to further hedge its foreign exchange risks. In connection with its trading activities, POSCO INTERNATIONAL arranges insurance and product transport at the request of customers, the costs of which generally become reflected in the sales price of the relevant products, and also provides financing services to its purchasers and suppliers as necessary. In the case of trading transactions involving large-scale industrial or construction projects, POSCO INTERNATIONAL also provides necessary project planning and organizing services to its customers. Natural Resources Development Activities. POSCO INTERNATIONAL also invests in energy and mineral development projects throughout the world. In particular, POSCO INTERNATIONAL holds a 51.0% interest in a gas field project in Myanmar, where production of gas commenced in July 2013. POSCO INTERNATIONAL recognized revenue of Won 615 billion in 2023, Won 605 billion in 2024 and Won 647 billion in 2025 from the Myanmar gas field project. Natural resources development projects, while entailing higher risks than the traditional trading business, offer higher potential returns. POSCO INTERNATIONAL intends to continue to expand its operations by carefully seeking out promising energy development projects abroad. Power Generation Activities. POSCO INTERNATIONAL acquired the power generation business of POSCO Energy through its merger into POSCO INTERNATIONAL on January 1, 2023. POSCO INTERNATIONAL operates power generation facilities in Korea and Southeast Asia, including LNG combined cycle power plants. As of December 31, 2025, POSCO INTERNATIONAL’s total power generation capacity of its LNG combined cycle power plants was approximately 3,412 megawatts. As of such date, POSCO INTERNATIONAL’s total power generation capacity of its renewable solar energy facilities was approximately 15 megawatts and its onshore wind power energy facilities was approximately 63 megawatts. POSCO INTERNATIONAL also operates an LNG receiving terminal with an aggregate capacity to process approximately 6.0 million tons of LNG annually in Gwangyang as of December 31, 2025. In addition, POSCO INTERNATIONAL participates in LNG trading, LNG tank rental services and LNG ship trial operations in order to achieve maximum operational efficiency of our LNG terminal. POSCO INTERNATIONAL also engages in fuel cell facility installation and operation services, as well as selectively seeks opportunities to expand into solar, wind and other renewable energy businesses in order to become an integrated provider of energy solutions. Competition POSCO INTERNATIONAL competes principally with other Korean general trading companies that are affiliated with major domestic business groups, as well as global trading companies based in other countries. In the domestic market, competition for export transactions on behalf of domestic suppliers and import transactions on behalf of domestic purchasers was limited, as most affiliated general trading companies of large Korean business groups generally relied on affiliate transactions for the bulk of their trading business. However, in recent years, many of these Korean general trading companies have reduced their reliance on their affiliated business group and transactions carried out on behalf of their member companies and instead have generally evolved to focus on segments of the import and export markets in which they have a competitive advantage. As a result, competition among 42 Table of Contents Korean general trading companies in the area of traditional trade has become more intense. POSCO INTERNATIONAL’s principal competitors in the overseas trading markets include Korean trading companies that operate in various international markets, as well as foreign trading companies, particularly those based in Japan. As POSCO INTERNATIONAL diversifies into businesses other than traditional trading such as natural resources development, it also increasingly competes with other Korean and international companies involved in these businesses. POSCO INTERNATIONAL’s power generation business competes principally with private-sector power generation companies in Korea that are affiliated with major domestic business groups, including SK Innovation Co., Ltd. and GS EPS Co., Ltd. Construction Segment POSCO E&C is one of the leading engineering and construction companies in Korea, primarily engaged in the planning, design and construction of industrial plants and architectural works and civil engineering projects. In particular, POSCO E&C has established itself as one of the premier engineering and construction companies in Korea through: • its strong and stable customer base; and • its cutting-edge technological expertise obtained from construction of advanced integrated steel plants, as well as participation in numerous modernization and rationalization projects at our Pohang Works and Gwangyang Works. Leveraging its technical know-how and track record of building some of the leading industrial complexes in Korea, POSCO E&C has also focused on diversifying its operations into construction of high-end apartment complexes and participating in a wider range of architectural works and civil engineering projects, as well as engaging in urban planning and development projects and expanding its operations abroad. In September 2015, we completed the sale of a 38.0% interest in POSCO E&C to Public Investment Fund (“PIF”), a sovereign wealth fund in Saudi Arabia, for US$1.05 billion. In connection with the sale, POSCO E&C and PIF agreed to jointly explore additional business opportunities in Saudi Arabia, including participating in various infrastructure projects sponsored by the Saudi Arabian government. POSCO E&C also has substantial experience in the energy field obtained from the construction of various power plants for member companies of the POSCO Group, specializing primarily in engineering and construction of LNG-fired thermal power plants. In response to increasing demand from the energy industry, POSCO E&C plans to continue to target opportunities in power plant construction, especially in Asia and Africa, which it believes offers significant growth potential. Competition Competition in the construction industry is based primarily on price, reputation for quality, reliability, punctuality and financial strength of contractors. In Korea, POSCO E&C’s main competition in the construction of residential and non-residential buildings, EPC projects, urban planning and development projects and civil works projects consists of approximately ten major domestic construction companies, all of which are member companies of other large business groups in Korea and are capable of undertaking larger-scale, higher-value-added projects that offer greater potential returns. A series of measures introduced by the Government over the past few years to regulate housing prices in Korea, as well as an increasing popularity of low-bid contracts in civil works project mandates, have contributed to increased competition in the Korean construction industry in recent years. In the overseas markets, POSCO E&C faces competition from local construction companies and other major Korean construction companies with overseas operations, as well as international construction companies from other countries. 43 Table of Contents Logistics and Others Segment POSCO DX. POSCO DX provides a wide range of information technology and operational technology services. In particular, POSCO DX has expertise in providing services to address the evolving needs of manufacturing companies arising from the convergence of information technology and operational technology. POSCO DX’s information technology services primarily consist of buildout and management of information technology infrastructure, including manufacturing execution systems, supply chain management systems, and enterprise resource planning systems. POSCO DX also serves as a managed service provider for the operation of cloud data centers on behalf of its clients, and provides other smart technology services including smart CCTV and smart home solutions. POSCO DX’s operational technology services primarily relate to automation of factory equipment and manufacturing processes and provision of energy efficiency solutions. POSCO DX also provides system engineering services targeting specific areas of operational processes, including automation of logistical operations and buildout and management of pollutant monitoring systems and intelligent transportation systems. For example, POSCO DX implemented a baggage handling system that is a comprehensive logistics system that automatically classifies and transports passenger baggage to the boarding aircraft at Incheon International Airport. In addition, POSCO DX utilizes digital twin, a convergence technology that replicates a real-world object in a virtual environment, to improve decision-making and optimize processes. POSCO DX also provides industrial robot automation services ranging from consulting, design, construction and operation relating to robot applications based on software technology. POSCO FLOW. POSCO FLOW provides a wide range of integrated logistics services. It engages in the operation of central terminal systems for transportation, storage and processing of raw materials. POSCO FLOW also offers optimized logistics solutions for a wide range of products including steel products, industrial parts, grains, natural gas and construction equipment and materials. Competition. POSCO DX competes principally with system integration service providers in Korea that are affiliated with major domestic business groups, including Samsung SDS Co., Ltd., LG CNS Co., Ltd. and SK Inc. AX. POSCO FLOW competes principally with logistics service providers in Korea that are affiliated with major domestic business groups, including Hyundai Glovis Co., Ltd., Samsung SDS Co., Ltd. and LX Pantos Co., Ltd. Rechargeable Battery Materials Segment POSCO Future M POSCO Future M manufactures cathode and anode materials, which are two of the main components of rechargeable batteries. POSCO Future M sells such materials primarily to Korea’s leading electric vehicle battery manufacturers such as LG Energy Solution, Ltd., Samsung SDI Co., Ltd. and SK On Co., Ltd., as well as to their joint ventures with global automotive manufacturers. POSCO Future M also manufactures quicklime and refractories used in steel manufacturing processes and other industrial applications as well as a wide range of chemical products such as coal tar and light oil. Quicklime is a widely used chemical component in a variety of industries. In the steel industry, a major use of quicklime is to remove impurities in the basic oxygen steelmaking process. Refractories are materials that are resistant to high temperature, used predominantly as furnace linings for elevated temperature materials processing and other applications in which thermomechanical properties are critical. 44 Table of Contents The following table sets forth a breakdown of POSCO Future M’s total consolidated revenue by major product categories for the periods indicated: For the Year Ended December 31, Products 2023 2024 2025 (in billions of Won, except percentages) Energy materials (including battery materials) W 3,362 70.6 % W 2,340 63.3 % W 1,574 53.6 % Quicklime and other chemical products 857 18.0 853 23.0 859 29.2 Refractories 541 11.4 507 13.7 505 17.2 Total revenue W 4,760 100.0 % W 3,700 100.0 % W 2,938 100.0 % Competition. In the energy materials market, POSCO Future M competes with other global leading manufacturers of cathode and anode materials, including LG Chemical Co., Ltd. and Ecopro BM Co., Ltd. In its legacy business areas of refractories and lime chemicals, POSCO Future M competes principally with Chosun Refractories ENG Co., Ltd. and Korea Refractories Co., Ltd. Investments in Lithium Hydroxide and Lithium Carbonate Production Projects Through investments made by POSCO HOLDINGS INC., we engage in natural resources development and production projects for lithium hydroxide and lithium carbonate, which are key materials for the production of cathode materials. POSCO Argentina. In 2018, POSCO Argentina, a wholly owned subsidiary of POSCO HOLDINGS INC., acquired a salt lake located in Salta and Catamarca provinces of Argentina. In October 2024, POSCO Argentina completed stage one of its construction of a commercialization plant adjacent to the lake for the production of lithium hydroxide. As of December 31, 2025, the construction schedule and related costs of the project were as follows: Project Expected Completion Date Total Cost of Project Estimated Remaining Cost of Completion as of December 31, 2025 (In billions of Won) Construction of salt water lithium commercialization plant – stage two October 2026 W 1,369 W 214 Upon completion of both stages, the commercialization plant is expected to have an annual production capacity of 25 thousand tons of lithium hydroxide and 23 thousand tons of lithium carbonate. POSCO Pilbara Lithium Solution. In 2018, we acquired a 2.74% stake in PLS Group Limited (“PLS”) and secured off-taking of spodumene mineral from the Pilgangoora Project, which is located 120 kilometers from Port Hedland in Western Australia’s resource-rich Pilbara region. POSCO Pilbara Lithium Solution, a joint venture with PLS in which POSCO HOLDINGS INC. holds a 82% interest, completed construction of a commercialization plant in Yulchon industrial complex in Gwangyang for the production of lithium hydroxide in November 2024. The facility has a total annual capacity of 43 thousand tons of lithium hydroxide, comprising two plants with a capacity of 21.5 thousand tons each. Others Segment Our Others Segment includes POSCO HOLDINGS INC. and all other entities which fall below the reporting thresholds. POSCO HOLDINGS INC. actively explores diversification opportunities in promising business areas. 45 Table of Contents Insurance We maintain property insurance for our property, plant and equipment that we believe to be consistent with market practice in Korea. Government Regulations Pursuant to the Monopoly Regulation and Fair Trade Act of Korea, we, as a non-financial holding company, are required to maintain the shareholding ratio of our subsidiaries above a certain threshold (i.e., 30% in case of a public company and 50% in case of a private company) and are also required to maintain our liabilities-to-equity ratio below 200%. In addition, we may not own the shares of any Korean companies that are not our affiliates in excess of 5% of the total outstanding shares of such company (except under certain exempted cases) nor control any Korean financial institutions or insurance companies. We are also required to annually report to the Korea Fair Trade Commission whether we have complied with such restrictive requirements. In the event we breach such obligations, we will be subject to criminal penalty. Item 4.C. Organizational Structure The following table sets out the jurisdiction of incorporation and our ownership interests of our significant subsidiaries as of December 31, 2025: Name Jurisdiction of Incorporation Percentage of Ownership POSCO Korea 100.0 % POSCO INTERNATIONAL Corporation Korea 73.0 % POSCO Eco & Challenge Co., Ltd Korea 52.8 % POSCO DX Co., Ltd. Korea 65.5 % POSCO Future M Co., Ltd. Korea 58.2 % POSCO (Zhangjiagang) Stainless Steel Co., Ltd. (1) China 82.5 % (1) POSCO HOLDINGS INC. holds a 58.6% interest and POSCO-China holds a 23.9% interest. We resolved to sell our equity interest in POSCO (Zhangjiagang) Stainless Steel Co., Ltd. at the meeting of the board of directors held in July 2025. Item 4.D. Property, Plants and Equipment Overview Our consolidated subsidiaries operate various production facilities in Korea and abroad. See Note 14 to the Consolidated Financial Statements. We may increase our production capacity in the future when we increase our capacity as part of our facilities expansion or as a result of continued modernization and rationalization of our existing facilities. For a discussion of major items of our capital expenditures currently in progress, see “Item 5. Operating and Financial Review and Prospects — Item 5.B. Liquidity and Capital Resources — Liquidity — Capital Expenditures and Capital Expansion.” We are vigorous in our efforts to engage in environmentally responsible management of, and to protect the environment from damage resulting from, our operations. We also establish and monitor decarbonization targets, focusing on energy efficiency and the reduction of key environmental emissions, while operating in compliance with applicable environmental laws and permit requirements. POSCO’s levels of pollution control are higher than those mandated by Government standards. POSCO utilizes pollution control facilities to minimize air emissions, outsource wastewater treatment to licensed contractors and conduct periodic and IoT-based monitoring of emission sources in accordance with regulatory standards. POSCO also established an online environmental monitoring system with real-time feedback on pollutant levels and a forecast system of pollutant concentration in surrounding areas. In addition, POSCO undergoes periodic environmental inspections by both internal and external inspectors in accordance with ISO 14001 standards to monitor execution and 46 Table of Contents maintenance of its environmental management plan. POSCO also operates a certification program targeting its suppliers, pursuant to which they are encouraged to establish environmental management systems of their own. Steel Segment POSCO’s principal properties are Pohang Works, which is located at Youngil Bay on the southeastern coast of Korea, and Gwangyang Works, which is located in Gwangyang in the southwestern region of Korea. POSCO also maintains and operates production properties abroad, including plants operated by PT. KRAKATAU POSCO in Indonesia and POSCO YAMATO VINA in Vietnam. POSCO (Zhangjiagang), our consolidated subsidiary, also operates production properties in Zhangjiagang, China for the production of stainless steel products. For a discussion of such operations, see “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment — Steel Making Operations Located Outside Korea.” Infrastructure Business POSCO INTERNATIONAL’s principal properties are LNG combined cycle power generation facilities located in Incheon and LNG terminal facilities located in Gwangyang. Rechargeable Battery Materials Segment POSCO Future M’s principal properties are (i) plants for the production of cathode materials located in Korea (Gwangyang and Pohang), Quebec, Canada and Tongxiang, China, (ii) plants for the production of anode materials located in Sejong and Pohang, (iii) plants for the production of quicklime located in Korea (Gwangyang and Pohang) and Banten, Indonesia, and (iv) plants for the production of refractories located in Pohang, Korea and Jiangsu Province, China. Steel Production Facilities in Korea Pohang Works Construction of Pohang Works began in 1970 and ended in 1983. Pohang Works produces a wide variety of steel products. Products produced at Pohang Works include hot rolled sheets, plates, wire rods and cold rolled sheets, as well as specialty steel products such as stainless steel sheets and silicon steel sheets. These products can also be customized to meet the specifications of our customers. Situated on a site of 8.9 million square meters at Youngil Bay on the southeastern coast of Korea, Pohang Works consists of iron-making, crude steelmaking and continuous casting and other rolling facilities. Pohang Works also has docking facilities capable of accommodating large ships for unloading raw materials, storage areas for raw materials and separate docking facilities for ships carrying products for export. Pohang Works is equipped with a highly advanced computerized production-management system allowing constant monitoring and control of the production process. Gwangyang Works Construction of Gwangyang Works began in 1985 and ended in 1992. Gwangyang Works specializes in high-volume production of a limited number of steel products. Products manufactured at Gwangyang Works include both hot and cold rolled types. Situated on a site of 13.7 million square meters reclaimed from the sea in Gwangyang in the southwestern region of Korea, Gwangyang Works is comprised of iron-making plants, steelmaking plants, continuous casting plants, hot strip mills and thin-slab hot rolling plants. The site also features docking and unloading facilities for raw materials capable of accommodating large ships for unloading raw materials, storage areas for raw materials and separate docking facilities for ships carrying products for export. 47 Table of Contents We believe Gwangyang Works is one of the most technologically-advanced integrated steel facilities in the world. Gwangyang Works has a completely automated, linear production system that enables the whole production process, from iron-making to finished products, to take place without interruption. Like Pohang Works, Gwangyang Works is equipped with a highly advanced computerized production-management system allowing constant monitoring and control of the production process. Capacity Utilization Rates The following table sets out the aggregate capacity utilization rates of Pohang Works and Gwangyang Works for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 40.68 40.46 39.81 Actual crude steel output (million tons) 35.68 35.05 34.54 Capacity utilization rate (%) (1) 87.7% 86.6% 86.8% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. Steel Production Facilities Abroad PT. KRAKATAU POSCO The following table sets out PT. KRAKATAU POSCO’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 3.00 2.97 2.95 Actual crude steel output (million tons) 3.01 2.98 2.93 Capacity utilization rate (%) (1) 100.5% 100.3% 99.4% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. POSCO (Zhangjiagang) The following table sets out POSCO (Zhangjiagang)’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 1.10 1.10 1.10 Actual crude steel output (million tons) 0.84 0.77 0.72 Capacity utilization rate (%) (1) 76.3% 69.8% 65.7% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. 48 Table of Contents POSCO YAMATO VINA The following table sets out POSCO YAMATO VINA’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 0.55 0.55 0.55 Actual crude steel output (million tons) 0.42 0.49 0.45 Capacity utilization rate (%) (1) 75.5% 88.2% 81.8% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us.

The following discussion and analysis is based on our Consolidated Financial Statements, which have been prepared in accordance with IFRS as issued by the IASB. Unless otherwise noted, the amounts included in Item 5.A. are presented on a consolidated basis. Overview We are a holding company, and we operate through our consolidated subsidiaries including POSCO, one of the largest steel producers in the world. We also engage in businesses that complement our steel manufacturing operations and also carefully seek out promising investment opportunities to diversify our businesses both vertically and horizontally. One of our principal strategies is to take advantage of our holding company structure to invest in promising businesses. We have made investments in the past decade to secure new growth engines by diversifying into new businesses related to our steel operations that we believe will offer greater potential returns, as well as entering into new businesses not related to our steel operations. We have six reportable segments as follows: • Steel Segment. Our Steel Segment includes the production and sale of steel products. • Infrastructure Business. Our Infrastructure Business includes our businesses related to provision of infrastructure and related services. Such business is divided into three segments as follows: Ø Trading Segment. The Trading Segment of our Infrastructure Business consists primarily of the global trading activities, natural resources development activities and power generation activities of POSCO INTERNATIONAL. POSCO INTERNATIONAL exports and imports a wide range of steel products that are both obtained from and supplied to POSCO, as well as steel and other products from and to other suppliers and purchasers in Korea and overseas. On January 1, 2023, POSCO Energy, Korea’s largest domestic private power utility company and a provider of alternative low-carbon energy solutions, merged into POSCO INTERNATIONAL. Ø Construction Segment. The Construction Segment of our Infrastructure Business consists primarily of POSCO E&C’s planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings, both in Korea and overseas. 49 Table of Contents Ø Logistics and Others Segment. The Logistics and Others Segment of our Infrastructure Business consists primarily of the information technology and operational technology services of POSCO DX and the integrated logistics services of POSCO FLOW. • Rechargeable Battery Materials Segment. Our Rechargeable Battery Materials Segment includes (i) the manufacturing and sale of various energy-related and other industrial materials by POSCO Future M, including cathode and anode materials for rechargeable batteries and (ii) investments made by us in production projects relating to other materials such as lithium. • Others Segment. Our Others Segment includes POSCO HOLDINGS INC. and all other entities which fall below the reporting thresholds. POSCO HOLDINGS INC. actively explores diversification opportunities in promising business areas. Factors Affecting Our Results of Operations and Financial Condition One of the major factors contributing to our historical performance has been the growth of the Korean economy, and our future performance will depend at least in part on Korea’s general economic growth and prospects. For a description of recent developments that have had and may continue to have an adverse effect on our results of operations and financial condition, see “Item 3. Key Information — Item 3.D. Risk Factors — Korea and the rest of Asia are our most important markets, and our current business and future growth could be materially and adversely affected if economic conditions in the region deteriorate.” A number of other factors have had or are expected to have a material impact on our results of operations, financial condition and capital expenditures. These factors include: • our sales volume, unit prices and product mix for steel products; • costs and production efficiency; and • exchange rate fluctuations. As a result of these factors, our financial results in the past may not be indicative of future results or trends in those results. Sales Volume, Unit Prices and Product Mix for Steel Products In recent years, our net sales have been affected by the following factors relating to our steel business: • the demand for our products in the Korean market and our capacity to meet that demand; • our ability to compete for sales in the export market, including due to tariffs imposed on our export products; • price levels; and • our ability to improve our product mix. Domestic demand for our products is affected by the condition of major steel-consuming industries, such as construction, shipbuilding, automotive, electrical appliances and downstream steel processors, and the Korean economy in general. In 2024, the unit sales price in Won for each of our principal product lines of steel products decreased compared to 2023 primarily due to continued weakness in global economic conditions. The weighted average unit price for our principal product lines of steel products decreased by 4.3% from 50 Table of Contents 2023 to 2024, the impact of which was offset in part by the depreciation in the average value of the Won against the U.S. dollar in 2024 compared to 2023 that increased our export prices in Won terms. The Market Average Exchange Rate depreciated from an average of Won 1,305.4 to US$1.00 in 2023 to an average of Won 1,364.0 to US$1.00 in 2024. The unit sales price of plates, which accounted for 16.1% of total sales volume of our principal steel products, decreased by 9.8% in 2024 compared to 2023. The unit sales price of silicon steel sheets, which accounted for 2.1% of total sales volume of such products, decreased by 8.9% in 2024 compared to 2023. The unit sales price of stainless steel products, which accounted for 8.6% of total sales volume of such products, decreased by 6.5% in 2024 compared to 2023. The unit sales price of hot rolled products, which accounted for 32.5% of total sales volume of such products, decreased by 3.8% in 2024 compared to 2023. The unit sales price of cold rolled products, which accounted for 35.4% of total sales volume of such products, decreased by 3.1% in 2024 compared to 2023. The unit sales price of wire rods, which accounted for 5.2% of total sales volume of such products, decreased by 1.2% in 2024 compared to 2023. In 2025, the unit sales price in Won for each of our principal product lines of steel products decreased compared to 2024 primarily due to continued weakness in global economic conditions. The weighted average unit price for our principal product lines of steel products decreased by 4.8% from 2024 to 2025, the impact of which was offset in part by the depreciation in the average value of the Won against the U.S. dollar in 2025 compared to 2024 that increased our export prices in Won terms. The Market Average Exchange Rate depreciated from an average of Won 1,364.0 to US$1.00 in 2024 to an average of Won 1,422.2 to US$1.00 in 2025. The unit sales price of hot rolled products, which accounted for 33.1% of total sales volume of such products, decreased by 8.1% in 2025 compared to 2024. The unit sales price of silicon steel sheets, which accounted for 2.2% of total sales volume of such products, decreased by 4.6% in 2025 compared to 2024. The unit sales price of cold rolled products, which accounted for 36.4% of total sales volume of such products, decreased by 4.1% in 2025 compared to 2024. The unit sales price of plates, which accounted for 15.6% of total sales volume of our principal steel products, decreased by 3.2% in 2025 compared to 2024. The unit sales price of stainless steel products, which accounted for 8.2% of total sales volume of such products, decreased by 1.0% in 2025 compared to 2024. The unit sales price of wire rods, which accounted for 4.5% of total sales volume of such products, decreased by 0.6% in 2025 compared to 2024. The table below sets out the average unit sales prices for our semi-finished and finished steel products produced by us and directly sold to external customers for the periods indicated. For the Year Ended December 31, Products 2023 2024 2025 (In thousands of Won per ton) Cold rolled products W 1,218 W 1,180 W 1,132 Hot rolled products 935 900 827 Stainless steel products 3,192 2,985 2,955 Plates 1,056 953 922 Wire rods 1,112 1,098 1,091 Silicon steel sheets 2,030 1,848 1,764 Average (1) W 1,273 W 1,218 W 1,159 (1) “Average” prices are based on the weighted average, by sales volume, of our sales for the listed principal products produced by us and directly sold to external customers. See “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment — Major Products.” The average unit sales price calculation does not include sales results of steel products categorized as “others.” 51 Table of Contents Costs and Production Efficiency Our major costs and operating expenses are raw material purchases, depreciation, labor and other purchases. The table below sets out our cost of sales and selling and administrative expenses as a percentage of our revenue as well as gross profit margin and operating profit margin for the periods indicated. For the Year Ended December 31, 2023 2024 2025 (Percentage of revenue) Cost of sales 91.7 % 92.5 % 92.6 % Selling and administrative expenses 3.7 4.4 4.8 Gross profit margin (1) 8.3 7.5 7.4 Operating profit margin (2) 3.6 2.0 2.1 (1) Ratio of gross profit to revenue. (2) Ratio of operating profit to revenue. We are closely monitoring changes in market conditions and we implemented the following measures in recent years to improve our profit margins: • pursuing cost reduction through enhancing product designs, improving productivity and reducing fixed costs; • focusing on marketing activities to increase the sales of higher margin, higher value-added products and to strengthen our domestic market position; • pursuing synergies among member companies of the POSCO Group through corporate restructurings; and • establishing a special sales committee to more effectively respond to changes in market trends and preparing responses to various scenarios of future sales. Production capacity represents our maximum production capacity that can be achieved with an optimal level of operations of our facilities. The table below sets out certain information regarding our production capacity and efficiency in the production of steel products for the periods indicated. For the Year Ended December 31, 2023 2024 2025 Crude steel production capacity (million tons per year) 45.3 45.1 44.5 POSCO 40.7 40.5 39.8 PT. KRAKATAU POSCO 3.0 3.0 3.0 POSCO (Zhangjiagang) 1.1 1.1 1.1 POSCO YAMATO VINA 0.6 0.6 0.6 Actual crude steel output (million tons) 39.9 39.3 38.6 POSCO 35.7 35.0 34.5 PT. KRAKATAU POSCO 3.0 3.0 2.9 POSCO (Zhangjiagang) 0.8 0.8 0.7 POSCO YAMATO VINA 0.4 0.5 0.5 Capacity utilization rate (%) 88.1 % 87.1 % 87.0 % POSCO 87.7 % 86.6 % 86.8 % PT. KRAKATAU POSCO 100.5 % 100.3 % 99.4 % POSCO (Zhangjiagang) 76.3 % 69.8 % 65.7 % POSCO YAMATO VINA 75.5 % 88.2 % 81.8 % Exchange Rate Fluctuations Our consolidated financial statements are prepared from our local currency denominated financial results, assets and liabilities and our subsidiaries around the world, which are then translated 52 Table of Contents into Won. A substantial proportion of our consolidated financial results is accounted for in currencies other than the Won. Accordingly, our consolidated financial results and assets and liabilities may be materially affected by changes in the exchange rates of foreign currencies. In 2025, 61.7% of the Steel Segment’s total revenue was in overseas markets outside of Korea. To the extent that we incur costs in one currency and make sales in another, our profit margins may be affected by changes in the exchange rates between the two currencies. Since the currency in which sales are recognized may not be the same as the currency in which expenses are incurred, foreign exchange rate fluctuations may materially affect our results of operations. Depreciation of the Won may materially affect the results of our operations because, among other things, it causes: • an increase in the amount of Won required for us to make interest and principal payments on our foreign currency-denominated debt; • an increase in Won terms in the costs of raw materials and equipment that we purchase from overseas sources and a substantial portion of our freight costs, which are denominated primarily in U.S. dollars; and • foreign exchange translation losses on foreign currency-denominated liabilities, which lower our earnings for accounting purposes. Appreciation of the Won against major currencies, on the other hand, causes: • our export products to be less competitive by raising our prices in U.S. dollar, Yen and Yuan terms; and • a reduction in net sales and trade accounts and notes receivables in Won from export sales, which are primarily denominated in U.S. dollars and to a lesser extent in Yen and Yuan. The overall net impact from fluctuations of the Won against major currencies is difficult to estimate and varies from year to year. We strive to naturally offset our foreign exchange risk by matching foreign currency receivables with our foreign currency payables and our overseas subsidiaries have sought to further mitigate the adverse impact of exchange rate fluctuations by conducting business transactions in the local currency of the respective market in which the transactions occur. In particular, POSCO INTERNATIONAL’s exposure to fluctuations in exchange rates, including the Won/U.S. dollar exchange rate, is limited because trading transactions typically involve matched purchase and sale contracts, which result in limited settlement exposure, and because POSCO INTERNATIONAL’s contracts with domestic suppliers of products for export and with domestic purchasers of imported products are generally denominated in U.S. dollars. Although the impact of exchange rate fluctuations is partially mitigated by such strategies, we and our subsidiaries, particularly POSCO INTERNATIONAL and POSCO E&C, also periodically enter into derivative contracts, primarily foreign currency swaps and forward exchange contracts, to further hedge some of our foreign exchange risks. However, our results of operations have historically been affected by exchange rate fluctuations and there can be no assurance that such strategies will be sufficient to reduce or eliminate the adverse impact of such fluctuations in the future. Recent Accounting Changes For a discussion of new standards, interpretations and amendments to existing standards that have been published, see Note 2 to the Consolidated Financial Statements. Explanatory Note Regarding Presentation of Certain Financial Information under K-IFRS In addition to preparing consolidated financial statements in accordance with IFRS as issued by the IASB included in this Annual Report on Form 20-F, we also prepare consolidated financial statements in accordance with K-IFRS as adopted by the Korea Accounting Standards Board, which we are required to file with the Financial Services Commission and the Korea Exchange under the FSCMA. 53 Table of Contents K-IFRS differs in certain respects from IFRS as issued by the IASB in the presentation of operating profit. In addition, under K-IFRS, revenue from the development and sale of real estate is recognized using the percentage of completion method. However, under IFRS as issued by the IASB, revenue from the development and sale of certain real estate is recognized when an individual unit of residential real estate is delivered to the buyer. As a result, our consolidated statements of comprehensive income and our consolidated statements of financial position prepared in accordance with IFRS as issued by the IASB included in this Annual Report on Form 20-F differ from our consolidated statements of comprehensive income and consolidated statements of financial position prepared in accordance with K-IFRS. The table below sets forth a reconciliation of our operating profit and profit as presented in our consolidated statements of comprehensive income prepared in accordance with IFRS as issued by the IASB for each of the years ended December 31, 2023, 2024 and 2025 to our operating profit and profit in our consolidated statements of comprehensive income prepared in accordance with K-IFRS, for each of the corresponding years, taking into account such differences: For the Year Ended December 31, 2023 2024 2025 (In billions of Won) Operating profit under IFRS as issued by the IASB W 2,738 W 1,452 W 1,477 Additions: Other bad debt expenses 291 69 53 Loss on disposals of assets held for sale 103 34 13 Loss on disposals of investments in subsidiaries, associates and joint ventures 18 73 13 Loss on disposals of property, plant and equipment 126 85 90 Impairment loss on property, plant and equipment 276 608 136 Impairment loss on intangible assets 130 48 52 Loss on valuation of firm commitment 47 40 28 Idle tangible asset expenses 4 3 6 Increase to provisions 38 85 56 Donations 67 75 90 Miscellaneous expenses and others 94 63 91 Total 1,196 1,184 627 Deductions: Recovery of allowance for other bad debt expenses (8 ) (18 ) (19 ) Gain on disposals of assets held for sale (1 ) (5 ) (54 ) Gain on disposals of investment in subsidiaries, associates and joint ventures (197 ) (14 ) (47 ) Gain on disposals of property, plant and equipment (9 ) (27 ) (16 ) Gain on valuation of firm commitment (11 ) (47 ) (42 ) Reversal of other provisions (9 ) (16 ) (8 ) Gain on insurance claim (13 ) (158 ) (20 ) Gain on bargain purchases (41 ) — — Gain on disposal of emission rights (26 ) (0 ) (0 ) Miscellaneous income and others (86 ) (103 ) (100 ) Total (402 ) (387 ) (306 ) Revenue recognition related to development and sale of real estate 71 (771 ) 108 Cost of sales recognition related to development and sale of real estate (71 ) 696 (79 ) Operating profit under K-IFRS W 3,531 W 2,174 W 1,827 Profit under IFRS as issued by the IASB W 1,846 W 1,005 W 527 Adjustments related to development and sale of real estate: Revenue 71 (771 ) 108 Cost of sales (71 ) 696 (79 ) Others (1) — — (62 ) Income tax expense 0 17 10 Profit under K-IFRS W 1,846 W 948 W 504 54 Table of Contents (1) Following a notification of a final administrative penalty in March 2026 in relation to the STS No. 4 steelmaking plant incident, we adjusted previously recognized provisions and related accounts accordingly. Operating Results – 2024 Compared to 2025 The following table presents our consolidated statement of comprehensive income information and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Revenue W 73,459 W 68,987 W (4,472 ) (6.1 ) Cost of sales 67,971 63,850 (4,121 ) (6.1 ) Gross profit 5,488 5,137 (351 ) (6.4 ) Selling and administrative expenses: Other administrative expenses 3,004 3,094 90 3.0 Selling expenses 235 244 9 4.0 Other operating income and expenses: Other operating income 387 306 (81 ) (21.1 ) Other operating expenses 1,184 627 (557 ) (47.1 ) Operating profit 1,452 1,477 25 1.8 Share of profit (loss) of equity-accounted investees, net (256 ) 350 606 N.A. (1) Finance income 5,212 3,222 (1,990 ) (38.2 ) Finance costs 5,081 3,910 (1,171 ) (23.0 ) Profit before income taxes 1,326 1,139 (187 ) (14.1 ) Income tax expense 321 612 291 90.7 Profit 1,005 527 (478 ) (47.6 ) Profit attributable to owners of the controlling company 1,125 691 (434 ) (38.6 ) Profit attributable to non-controlling interests (120 ) (164 ) (44 ) 36.3 (2) N.A. means not applicable. 55 Table of Contents Revenue The following table presents our revenue by segment and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Steel Segment: External revenue W 39,104 W 37,285 W (1,819 ) (4.7 ) Internal revenue 23,097 22,114 (983 ) (4.3 ) Sub-total 62,201 59,399 (2,802 ) (4.5 ) Infrastructure Business — Trading Segment External revenue 22,804 23,744 940 4.1 Internal revenue 20,099 18,477 (1,622 ) (8.1 ) Sub-total 42,903 42,221 (682 ) (1.6 ) Infrastructure Business — Construction Segment External revenue 7,473 5,615 (1,858 ) (24.9 ) Internal revenue 2,357 1,613 (744 ) (31.6 ) Sub-total 9,830 7,228 (2,602 ) (26.5 ) Infrastructure Business — Logistics and Others Segment External revenue 422 309 (113) (26.8 ) Internal revenue 3,717 3,246 (471 ) (12.7 ) Sub-total 4,139 3,554 (585 ) (14.1 ) Rechargeable Battery Materials Segment External revenue 2,813 2,096 (717 ) (25.5 ) Internal revenue 1,017 1,242 225 22.1 Sub-total 3,830 3,338 (492 ) (12.8 ) Others Segment: External revenue 73 45 (28 ) (37.7 ) Internal revenue 2,038 1,455 (583 ) (28.6 ) Sub-total 2,111 1,500 (611 ) (28.9 ) Total revenue prior to consolidation adjustments 125,014 117,241 (7,773 ) (6.2 ) Consolidation adjustments (52,326 ) (48,146 ) 4,180 (8.0 ) Basis difference adjustments (1) 771 (108 ) (879 ) N.A. (2) Revenue W 73,459 W 68,987 (4,472 ) (6.1 ) (1) Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment of the Infrastructure Business in connection with the development and sales of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. (2) N.A. means not applicable. Our revenue decreased by 6.1%, or Won 4,472 billion, from Won 73,459 billion in 2024 to Won 68,987 billion in 2025 due to decreases in external revenues of most of our segments, particularly external revenues of the Steel Segment, the Construction Segment of the Infrastructure Business and the Rechargeable Battery Materials Segment, the impact of which was offset in small part by an increase in external revenue of the Trading Segment of the Infrastructure Business. Specifically: Steel Segment. External revenue from the Steel Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 4.7%, or Won 1,819 billion, from Won 39,104 billion in 2024 to Won 37,285 billion in 2025 due to decreases in the average unit sales price per ton of our principal steel products and the sales volume of our principal steel products. The weighted average unit sales price per ton of the principal steel products 56 Table of Contents produced by us and directly sold to external customers decreased by 4.8% from Won 1,217,705 per ton in 2024 to Won 1,159,315 per ton in 2025 primarily due to continued weakness in global economic conditions, which impact was offset in part by depreciation of the Won against the U.S. dollar in 2025 that increased our export prices in Won terms during 2025. The overall sales volume of our principal steel products decreased by 0.7%, from 29.2 million tons in 2024 to 28.9 million tons in 2025. Such factors were principally attributable to the following: • The unit sales price in Won of each of our principal product lines decreased from 2024 to 2025. The unit sales prices in Won of hot rolled products, silicon steel sheets, cold rolled products, plates, stainless steel products and wire rods decreased by 8.1%, 4.6%, 4.1%, 3.2%, 1.0% and 0.6%, respectively, from 2024 to 2025. For a discussion of changes in the unit sales prices of each of our principal product lines, see “— Overview — Sales Volume, Unit Prices and Product Mix” above. • The sales volume of wire rods, stainless steel products and plates decreased by 14.2%, 5.7% and 3.7%, respectively, from 2024 to 2025. On the other hand, the sales volume of silicon steel sheets, cold rolled products and hot rolled products increased by 2.2%, 1.9% and 1.2%, respectively, from 2024 to 2025. For a discussion of changes in the sales volume of each of our principal product lines, see “Item 4.B. Business Overview — Steel Segment — Major Products.” Total revenue from the Steel Segment, which includes internal revenue from inter-company transactions, decreased by 4.5%, or Won 2,802 billion, from Won 62,201 billion in 2024 to Won 59,399 billion in 2025 as internal revenue from inter-company transactions decreased by 4.3%, or Won 983 billion, from Won 23,097 billion in 2024 to Won 22,114 billion in 2025 primarily due to a decrease in the sale prices of steel products sold through trading subsidiaries. Trading Segment of the Infrastructure Business. External revenue from the Trading Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, increased by 4.1%, or Won 940 billion, from Won 22,804 billion in 2024 to Won 23,744 billion in 2025 primarily due to increases in sales volume of steel products traded by POSCO INTERNATIONAL and the trading volume of non-steel products traded by POSCO INTERNATIONAL as well as the depreciation of the Won against the U.S. dollar in 2025 that increased our export prices in Won terms during 2025, the aggregate impact of which was offset in part by decreases in the prices of steel products traded by POSCO INTERNATIONAL. Total revenue from the Trading Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, decreased by 1.6%, or Won 682 billion, from Won 42,903 billion in 2024 to Won 42,221 billion in 2025 as internal revenue from inter-company transactions decreased by 8.1%, or Won 1,622 billion, from Won 20,099 billion in 2024 to Won 18,477 billion in 2025 primarily due to decreases in the volume of steel products traded as inter-company transactions. Construction Segment of the Infrastructure Business. External revenue from the Construction Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation and basis difference adjustments, decreased by 24.9%, or Won 1,858 billion, from Won 7,473 billion in 2024 to Won 5,615 billion in 2025 primarily due to decreases in external revenues from plant construction projects and infrastructure projects. Total revenue from the Construction Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, decreased by 26.5%, or Won 2,602 billion, from Won 9,830 billion in 2024 to Won 7,228 billion in 2025 as internal revenue from inter-company transactions decreased by 31.6%, or Won 744 billion, from Won 2,357 billion in 2024 to Won 1,613 billion in 2025 primarily due to decreases in the construction activities for member companies of the POSCO Group from 2024 to 2025. 57 Table of Contents Logistics and Others Segment of the Infrastructure Business. External revenue from the Logistics and Others Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 26.8%, or Won 113 billion, from Won 422 billion in 2024 to Won 309 billion in 2025, primarily due to a decrease in revenue from automation of logistical operation services provided by POSCO DX to its external customers following general slowdowns in economic activity. Total revenue from the Logistics and Others Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, decreased by 14.1%, or Won 585 billion, from Won 4,139 billion in 2024 to Won 3,554 billion in 2025 as internal revenue from inter-company transactions decreased by 12.7%, or Won 471 billion, from Won 3,717 billion in 2024 to Won 3,246 billion in 2025 primarily due to a decrease in logistics services following reduced capital expenditures from members companies of the POSCO group. Rechargeable Battery Materials Segment. External revenue from the Rechargeable Battery Materials Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 25.5%, or Won 717 billion, from Won 2,813 billion in 2024 to Won 2,096 billion in 2025, primarily due to a decrease in sales of cathode and anode materials used, among others, in the production of electric batteries following a decrease in demand for electric vehicles. Total revenue from the Rechargeable Battery Materials Segment, which includes internal revenue from inter-company transactions, decreased by 12.8%, or Won 492 billion, from Won 3,830 billion in 2024 to Won 3,338 billion in 2025 while internal revenue from inter-company transactions increased by 22.1%, or Won 225 billion, from Won 1,017 billion in 2024 to Won 1,242 billion in 2025 primarily due to increased internal sales from member companies within the Rechargeable Battery Materials Segment to POSCO Future M. Others Segment. External revenue from the Others Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 37.7%, or Won 28 billion, from Won 73 billion in 2024 to Won 45 billion in 2025, primarily due to a decrease in dividend income following disposals of certain of our investments. Total revenue from the Others Segment, which includes internal revenue from inter-company transactions, decreased by 28.9%, or Won 611 billion, from Won 2,111 billion in 2024 to Won 1,500 billion in 2025 as internal revenue from inter-company transactions decreased by 28.6%, or Won 583 billion, from Won 2,038 billion in 2024 to Won 1,455 billion in 2025 primarily due to a decrease in dividend payments from our subsidiaries. Cost of Sales Our cost of sales decreased by 6.1%, or Won 4,121 billion, from Won 67,971 billion in 2024 to Won 63,850 billion in 2025 primarily due to decreases in the average prices in Won terms of some of our key raw materials for POSCO and a decrease in production volume of finished steel products sold by us, the impact of which was partially offset by depreciation of the Won against the U.S. dollar, which increased the price of our imported raw materials in Won terms. With respect to the principal raw materials for our steel products, the average market price of coal per wet metric ton (Premium Low Vol Coking Coal, FOB Australia Index announced by Platts) decreased from US$240 in 2024 to US$188 in 2025. In addition, the average market price of iron ore per dry metric ton (Iron Ore 62% Fe, CFR China Index announced by Platts) decreased from US$109 in 2024 to US$102 in 2025. Gross Profit Our gross profit decreased by 6.4%, or Won 351 billion, from Won 5,488 billion in 2024 to Won 5,137 billion in 2025 primarily due to (i) a decrease in dividend income and fund investment returns of 58 Table of Contents the Others segment and (ii) a decrease in POSCO E&C’s participation in higher margin plant and infrastructure construction projects in 2025, which impact was partially offset by (iii) an increase in gross profit from POSCO reflecting cost reductions that outpaced the decrease in revenue. Our gross profit margin, which is gross profit as a percentage of revenue, decreased from 7.5% in 2024 to 7.4% in 2025. Selling and Administrative Expenses The following table presents a breakdown of our selling and administrative expenses and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Freight and custody expenses W 35 W 31 (4 ) (10.2 ) Sales commissions 102 94 (8 ) (7.9 ) Sales promotion 10 11 1 8.5 Sales insurance premium 32 35 3 7.7 Contract cost 35 53 18 50.3 Others 21 21 (0 ) (0.8 ) Total selling expenses W 235 W 245 10 4.0 Wages and salaries W 1,212 W 1,324 W 112 9.2 Expenses related to post-employment benefits 136 101 (35 ) (26.1 ) Other employee benefits 300 305 5 1.6 Travel 48 55 7 15.3 Depreciation 174 177 3 2.1 Amortization 113 116 3 2.9 Taxes and public dues 95 100 5 5.2 Rental 45 38 (7 ) (16.7 ) Advertising 102 96 (6 ) (6.6 ) Research and development 208 195 (13 ) (5.9 ) Service fees 269 234 (35 ) (12.8 ) Bad debt expenses (reversal) 134 169 35 25.9 Others 169 184 15 9.7 Total other administrative expenses W 3,004 W 3,094 90 3.0 Total selling and administrative expenses W 3,239 W 3,339 100 3.1 (1) N.A. means not applicable. Our selling and administrative expenses increased by 3.1%, or Won 100 billion, from Won 3,239 billion in 2024 to Won 3,339 billion in 2025 primarily due to increases in wages and salaries and bad debt expenses, the impact of which was partially offset by decreases in expenses related to post-employment benefits and service fees. Such factors were principally attributable to the following: • Our wages and salaries increased by 9.2%, or Won 112 billion, from Won 1,212 billion in 2024 to Won 1,324 billion in 2025 primarily due to increased statutory severance payments at POSCO (Zhangjiagang). • Our bad debt expenses increased by 25.9%, or Won 35 billion, from Won 134 billion in 2024 to Won 169 billion in 2024 primarily due to an increase in non-performing receivables at POSCO E&C. • Our expenses related to post-employment benefits decreased by 26.1%, or Won 35 billion, from Won 136 billion in 2024 to Won 101 billion in 2025 primarily due to decreases in retirement benefit expenses following workforce reductions at POSCO MOBILITY SOLUTION in 2024. 59 Table of Contents • Our service fees decreased by 12.8%, or Won 35 billion, from Won 269 billion in 2024 to Won 234 billion in 2025 primarily due to a decrease in service-related activities of POSCO INTERNATIONAL. Other Operating Income and Expenses The following table presents a breakdown of our other operating income and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Recovery of allowance for other bad debt expenses W 18 W 19 W 1 2.4 Gain on disposals of assets held for sale 5 54 49 1,018.4 Gain on disposals of investments in subsidiaries, associates and joint ventures 14 47 33 232.8 Gain on disposals of property, plant and equipment 27 16 (11) (40.5 ) Gain on valuation of firm commitment 47 42 (5) (10.5 ) Reversal of other provisions 16 8 (8) (48.6 ) Gain on insurance claim 158 20 (138) (87.6 ) Miscellaneous income 90 94 4 4.1 Others 13 6 (7) (50.7 ) Total other operating income W 387 W 306 (81 ) (21.1 ) Our other operating income decreased by 21.1%, or Won 81 billion, from Won 387 billion in 2024 to Won 306 billion in 2025 primarily due to a decrease in gain on insurance claim, the impact of which was partially offset by increases in gain on disposals of assets held for sale and gain on disposals of investments in subsidiaries, associates and joint ventures. Such factors were principally attributable to the following: • Our gain on insurance claim decreased by 87.6%, or Won 138 billion, from Won 158 billion in 2024 to Won 20 billion in 2025 primarily due to significant insurance payments received in 2024 in relation to the flooding caused by Typhoon Hinnamnor at Pohang Works’ facilities in September 2022 compared to no such payments in 2025. • Our gain on disposals of assets held for sale increased significantly by 1,108.4%, or Won 49 billion, from Won 5 billion in 2024 to Won 54 billion in 2025 primarily due to gains on disposals related to the sale of POSCO Future M’s interest in P&O Chemical Co., Ltd in 2025. • Our gain on disposals of investments in subsidiaries, associates and joint ventures increased by 232.8%, or Won 33 billion, from Won 14 billion in 2024 to Won 47 billion in 2025 primarily due to gain on disposals of investment in POSCO (Suzhou) Steel Processing Center CO., LTD. in 2025. 60 Table of Contents The following table presents a breakdown of our other operating expenses and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Other bad debt expenses W 69 W 53 W (16 ) (22.7 ) Loss on disposals of assets held for sale 34 13 (21 ) (61.4 ) Loss on disposals of investments in subsidiaries, associates and joint ventures 73 13 (60 ) (82.5 ) Loss on disposals of property, plant and equipment 85 90 5 5.6 Impairment loss on property, plant and equipment 608 136 (472 ) (77.7 ) Impairment loss on intangible assets 48 52 4 7.6 Loss on valuation of firm commitment 40 28 (12 ) (30.5 ) Idle tangible asset expenses 3 6 3 81.1 Increase to provisions 85 56 (29 ) (34.3 ) Donations 75 90 15 20.2 Miscellaneous expenses 46 82 36 76.4 Others 18 8 (10 ) (46.6 ) Total other operating expenses W 1,184 W 627 (557 ) (47.1 ) Our other operating expenses decreased by 47.1%, or Won 557 billion, from Won 1,184 billion in 2024 to Won 627 billion in 2025 primarily due to decreases in impairment loss on property, plant and equipment and loss on disposals of investments in subsidiaries, associates and joint ventures, the impact of which was partially offset by an increase in miscellaneous expenses. Such factors were principally attributable to the following: • Our impairment loss on property, plant and equipment decreased by 77.7%, or Won 472 billion, from Won 608 billion in 2024 to Won 136 billion in 2025. In 2024, such impairment loss primarily related to impairment losses on certain anode and cathode materials facilities that were in long-term idle status or that did not meet anticipated economic performance. In 2025, such impairment loss primarily related to suspensions of operations in certain of our facilities, such as Finex Plant no. 3. • Our loss on disposals of investments in subsidiaries, associate and joint ventures decreased by 82.5%, or Won 60 billion, from Won 73 billion in 2024 to Won 13 billion in 2025 primarily due to the disposal of POSCO International Power (PNG Lae) Ltd. in 2024. • Our miscellaneous expenses increased by 76.4%, or Won 36 billion, from Won 46 billion in 2024 to Won 82 billion in 2025 primarily due to administrative fines imposed on POSCO relating to facilities management and litigation-related costs incurred by POSCO INTERNATIONAL in connection with Peru Block 8. Operating Profit Due to the factors described above, our operating profit increased by 1.8%, or Won 25 billion, from Won 1,452 billion in 2024 to Won 1,477 billion in 2025. Our operating profit margin, which is operating profit as a percentage of revenue, increased from 2.0% in 2024 to 2.1% in 2025. Share of Profit (Loss) of Equity-Accounted Investees We recorded share of loss of equity-accounted investees (net) of Won 256 billion in 2024 and share of profit of equity-accounted investees (net) of Won 350 billion in 2025. In 2024, we recognized a net loss from our proportionate share of equity-accounted investees of Won 256 billion primarily due to our share of losses of Won 266 billion from NCR LLC, Won 117 billion 61 Table of Contents from Zhejiang Huayou-POSCO ESM Co., Ltd., Won 62 billion from SNNC and Won 49 billion from HBIS-POSCO Automotive Steel Co., Ltd., the aggregate impact of which was partially offset by our share of profit of Won 203 billion from Roy Hill Holdings Pty Ltd. See Note 11 to the Consolidated Financial Statements. In 2025, we recognized a net profit from our proportionate share of equity-accounted investees of Won 350 billion primarily due to our share of profits of Won 161 billion from Roy Hill Holdings Pty Ltd., Won 95 billion from AMCI (WA) PTY LTD., Won 57 billion from South-East Asia Gas Pipeline Company Ltd. and Won 43 billion from POSCO-NPS Niobium LLC, the aggregate impact of which was partially offset by our share of loss of Won 48 billion from HBIS-POSCO Automotive Steel Co., Ltd.. See Note 11 to the Consolidated Financial Statements. Finance Income and Finance Costs The following table presents a breakdown of our finance income and costs and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Interest income W 577 W 533 W (44 ) (7.5 ) Dividend income 77 38 (39 ) (50.5 ) Gain on foreign currency transactions 1,420 1,340 (80 ) (5.6 ) Gain on foreign currency translations 1,188 723 (465 ) (39.1 ) Gain on derivatives transactions 438 299 (139 ) (31.8 ) Gain on valuations of derivatives 899 149 (750 ) (83.4 ) Gain on disposals of financial assets at fair value through profit or loss 165 58 (107 ) (64.5 ) Gain on valuations of financial assets at fair value through profit or loss 201 74 (127 ) (63.0 ) Gain on valuations of financial liabilities at fair value through profit or loss 239 — (239 ) (100.0 ) Others 9 8 (1 ) (16.9 ) Total finance income W 5,212 W 3,222 (1,990 ) (38.2 ) Interest expenses W 1,052 W 1,091 W 39 3.8 Loss on foreign currency transactions 1,448 1,354 (94 ) (6.5 ) Loss on foreign currency translations 1,900 708 (1,192 ) (62.8 ) Loss on derivatives transactions 318 435 117 37.0 Loss on valuations of derivatives 109 69 (40 ) (36.1 ) Loss on disposal of trade accounts and notes receivable 83 73 (10 ) (11.1 ) Loss on disposals of financial assets at fair value through profit or loss 28 7 (21 ) (74.4 ) Loss on valuations of financial assets at fair value through profit or loss 81 132 51 63.3 Loss on valuations of financial liabilities at fair value through profit or loss — 1 1 N.A. (1) Others 63 39 (24 ) (38.7 ) Total finance costs W 5,081 W 3,910 (1,171 ) (23.0 ) (1) N.A. means not applicable. We recognized net loss on foreign currency translations of Won 713 billion in 2024 compared to net gain on foreign currency translations of Won 15 billion in 2025, as the Won depreciated against the U.S. dollar at year-end in 2024 but appreciated at year-end in 2025. In terms of the Market Average Exchange Rate, the Won depreciated against the U.S. dollar from Won 1,289.4 to US$1.00 as of December 31, 2023 to Won 1,470.0 to US$1.00 as of December 31, 2024, but appreciated to Won 1,434.9 to US$1.00 as of December 31, 2025. In addition, our net loss on foreign currency transactions decreased by 49.4%, or Won 14 billion, from Won 28 billion in 2024 to Won 14 billion, as 62 Table of Contents the average value of the Won against the U.S. dollar depreciated in 2024 and further depreciated (to a greater extent) in 2025. The Market Average Exchange Rate, which was Won 1,305.4 to US$1.00 as of December 31, 2023, depreciated during 2024 to an average of Won 1,364.0 to US$1.00 in 2024 and further depreciated during 2025 to an average of Won 1,422.2 to US$1.00 in 2024. Against such fluctuations, our net gain on valuations of derivatives decreased by 89.9%, or Won 710 billion, from Won 790 billion in 2024 to Won 80 billion in 2025, and we recognized net gain on derivatives transactions of Won 120 billion in 2024 compared to net loss on derivatives transactions of Won 137 billion in 2025. We recognized net gain on valuations of financial assets at fair value through profit or loss of Won 121 billion in 2024 compared to net loss on valuations of financial assets at fair value through profit or loss of Won 57 billion in 2025. In 2024, we recognized such net gain primarily due to primarily due to the yields on our financial products exceeding market interest rates. In 2025, we recognized such net loss primarily due to the general decrease in interest rates in Korea in 2025. We recognized net gain on valuations of financial liabilities at fair value through profit or loss of Won 239 billion in 2024 compared to net loss on valuations of financial liabilities at fair value through profit or loss of Won 1 billion in 2025. In 2024, we recognized a net gain as the market price of our shares into which exchangeable bonds we had issued decreased, which in turn resulted in a gain on valuation of financial liabilities. The net gain also included the effect of the early redemption of the exchangeable bonds. In 2025, we did not recognize a material gain on loss on valuation of financial liabilities at fair value through profit or loss as a result of the early redemption of exchangeable bonds in 2024. Our interest income decreased by 7.5%, or Won 44 billion, from Won 577 billion in 2024 to Won 533 billion in 2025 primarily due to a general decrease in interest rates in Korea, which impact was partially offset by an increase in our average balance of interest-earning financial assets. Our interest expenses increased by 3.8%, or Won 39 billion, from Won 1,052 billion in 2024 to Won 1,091 billion in 2025 primarily due to an increase in our average balance of interest-bearing liabilities. Profit before Income Taxes Due to the factors described above, our profit before income taxes decreased by 14.1%, or Won 187 billion, from Won 1,326 billion in 2024 to Won 1,139 billion in 2025. The following table presents our profit and loss by segment, prior to adjusting for goodwill and corporate fair value adjustments, elimination of inter-segment losses (profits), income tax expense and basis difference, and changes therein for 2024 and 2025. Changes For the Year Ended December 31, 2024 versus 2025 2024 2025 Amount % (In billions of Won) Steel Segment W 691 W 1,152 W 461 66.6 Infrastructure Business — Trading Segment 537 563 26 4.8 Infrastructure Business — Construction Segment (194 ) (565 ) (371 ) 191.0 Infrastructure Business — Logistics and Others Segment 104 61 (43 ) (41.3 ) Rechargeable Battery Materials Segment (635 ) (592 ) 43 (6.7 ) Others Segment 1,596 507 (1,089 ) (68.2 ) Goodwill and corporate fair value adjustments (65 ) (66 ) (1 ) 1.8 Elimination of inter-segment profit (1,087 ) (555 ) 532 (49.0 ) Income tax expense(1) 304 602 298 98.4 Basis difference adjustments(2) 75 32 (43 ) (57.3 ) Profit before income taxes W 1,326 W 1,139 (187 ) (14.1 ) (1) Income tax expense presented herein reflects amounts determined under K-IFRS for purposes of segment profit measurement and may differ from income tax expense presented in the consolidated financial statements under IFRS. 63 Table of Contents (2) Basis difference adjustments are related to the difference in recognizing revenue and expenses, including income tax expense, of the Construction Segment of the Infrastructure Business in connection with the development and sales of certain residential real estate and other items between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. Income Tax Expense Our income tax expense increased by 90.7%, or Won 291 billion, from Won 321 billion in 2024 to Won 612 billion in 2025, primarily due to a significant increase in the effect of tax rate changes resulting from the amendment to Article 55 of the Korean Corporate Tax Act, which revised the corporate tax rate brackets and applicable rates. Our effective tax rate increased from 24.20% in 2024 to 53.74% in 2025. See Note 35 to the Consolidated Financial Statements. Profit Due to the factors described above, our profit decreased by 47.6%, or Won 478 billion, from Won 1,005 billion in 2024 to Won 527 billion in 2025. Our profit margin, which is profit as a percentage of revenue, decreased from 1.4% in 2024 to 0.8% in 2025. Operating Results – 2023 Compared to 2024 The following table presents our consolidated statement of comprehensive income information and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Revenue W 77,057 W 73,459 W (3,597 ) (4.7 ) Cost of sales 70,639 67,971 (2,668 ) (3.8 ) Gross profit 6,417 5,488 (929 ) (14.5 ) Selling and administrative expenses: Other administrative expenses(1) 2,652 3,004 353 13.3 Selling expenses 234 235 1 0.6 Other operating income and expenses: Other operating income(2) 402 387 (15 ) (3.7 ) Other operating expenses(3) 1,196 1,184 (12 ) (1.0 ) Operating profit 2,738 1,452 (1,286 ) (47.0 ) Share of profit (loss) of equity-accounted investees, net 270 (256 ) (526 ) N.A. (4) Finance income 3,831 5,212 1,381 36.0 Finance costs 4,203 5,081 878 20.9 Profit before income taxes 2,635 1,326 (1,309 ) (49.7 ) Income tax expense 789 321 (468 ) (59.3 ) Profit 1,846 1,005 (841 ) (45.6 ) Profit attributable to owners of the controlling company 1,698 1,125 (573 ) (33.7 ) Profit attributable to non-controlling interests 148 (120 ) (268 ) N.A. (4) (1) In 2023, includes reversal of impairment loss on trade accounts and notes receivable of Won 18 billion. (2) In 2023, includes recovery of allowance for other bad debt expenses of Won 8 billion. (3) In 2023, includes other bad debt expenses of Won 291 billion (including impairment loss on other receivables of Won 284 billion). (4) N.A. means not applicable. 64 Table of Contents Revenue The following table presents our revenue by segment and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Steel Segment: External revenue W 40,393 W 39,104 W (1,289 ) (3.2 ) Internal revenue 23,145 23,097 (49 ) (0.2 ) Sub-total 63,539 62,201 (1,338 ) (2.1 ) Infrastructure Business — Trading Segment External revenue 24,034 22,804 (1,230 ) (5.1 ) Internal revenue 18,910 20,099 1,189 6.3 Sub-total 42,944 42,903 (40 ) (0.1 ) Infrastructure Business — Construction Segment External revenue 8,301 7,473 (828 ) (10.0 ) Internal revenue 1,966 2,357 390 19.8 Sub-total 10,268 9,830 (438 ) (4.3 ) Infrastructure Business — Logistics and Others Segment External revenue 471 422 (49) (10.4 ) Internal revenue 3,475 3,717 242 7.0 Sub-total 3,946 4,139 193 4.9 Rechargeable Battery Materials Segment External revenue 3,816 2,813 (1,003) (26.3 ) Internal revenue 1,006 1,017 11 1.1 Sub-total 4,822 3,830 (992 ) (20.6 ) Others Segment: External revenue 113 73 (40 ) (35.2 ) Internal revenue 1,450 2,038 589 40.6 Sub-total 1,562 2,111 549 35.1 Total revenue prior to consolidation adjustments 127,080 125,014 (2,066 ) (1.6 ) Consolidation adjustments (49,953 ) (52,326 ) 2,373 4.8 Basis difference adjustments(1) (71 ) 771 842 N.A. (2) Revenue W 77,057 W 73,459 (3,597 ) (4.7 ) (1) Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment of the Infrastructure Business in connection with the development and sales of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. (2) N.A. means not applicable. Our revenue decreased by 4.7%, or Won 3,597 billion, from Won 77,057 billion in 2023 to Won 73,459 billion in 2024 due to decreases in external revenues of each of our segments, particularly external revenues of the Steel Segment, the Trading Segment of the Infrastructure Business, the Rechargeable Battery Materials Segment and the Construction Segment of the Infrastructure Business. Specifically: Steel Segment. External revenue from the Steel Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 3.2%, or Won 1,289 billion, from Won 40,393 billion in 2023 to Won 39,104 billion in 2024 due to a decrease in the average unit sales price per ton of our principal steel products, which was offset in part by an increase in the sales volume of our principal steel products. The weighted average unit sales price per 65 Table of Contents ton of the principal steel products produced by us and directly sold to external customers decreased by 4.3% from Won 1,272,754 per ton in 2023 to Won 1,217,705 per ton in 2024 primarily due to continued weakness in global economic conditions, which impact was offset in part by depreciation of the Won against the U.S. dollar in 2024 that increased our export prices in Won terms during 2024. On the other hand, the overall sales volume of our principal steel products increased by 1.1%, from 28.8 million tons in 2023 to 29.2 million tons in 2024. Such factors were principally attributable to the following: • The unit sales price in Won of each of our principal product lines decreased from 2023 to 2024. The unit sales prices in Won of plates, silicon steel sheets, stainless steel products, hot rolled products, cold rolled products and wire rods decreased by 9.8%, 8.9%, 6.5%, 3.8%, 3.1% and 1.2%, respectively, from 2023 to 2024. For a discussion of changes in the unit sales prices of each of our principal product lines, see “— Overview — Sales Volume, Unit Prices and Product Mix” above. • The sales volume of silicon steel sheets, cold rolled products, stainless steel products and plates increased by 19.6%, 5.7%, 2.0% and 0.6%, respectively, from 2023 to 2024. On the other hand, the sales volume of wire rods and hot rolled products decreased by 5.9% and 3.2%, respectively, from 2023 to 2024. For a discussion of changes in the sales volume of each of our principal product lines, see “Item 4.B. Business Overview — Steel Segment — Major Products.” Total revenue from the Steel Segment, which includes internal revenue from inter-company transactions, decreased by 2.1%, or Won 1,338 billion, from Won 63,539 billion in 2023 to Won 62,201 billion in 2024 as internal revenue from inter-company transactions decreased by 0.2%, or Won 49 billion, from Won 23,145 billion in 2023 to Won 23,097 billion in 2024 primarily due to a decrease in the sale prices of steel products sold through trading subsidiaries. Trading Segment of the Infrastructure Business. External revenue from the Trading Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 5.1%, or Won 1,230 billion, from Won 24,034 billion in 2023 to Won 22,804 billion in 2024 primarily due to decreases in the prices of steel products traded by POSCO INTERNATIONAL and the trading volume of non-steel products traded by POSCO INTERNATIONAL reflecting deterioration in global economic conditions, the aggregate impact of which was offset in part by (i) depreciation of the Won against the U.S. dollar in 2024 that increased our export prices in Won terms during 2024 and (ii) increase in the sales volume of steel products traded by POSCO INTERNATIONAL. Total revenue from the Trading Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, decreased by 0.1%, or Won 40 billion, from Won 42,944 billion in 2023 to Won 42,903 billion in 2024 as internal revenue from inter-company transactions increased by 6.3%, or Won 1,189 billion, from Won 18,910 billion in 2023 to Won 20,099 billion in 2024 primarily due to increases in the volume of steel products traded as inter-company transactions. Construction Segment of the Infrastructure Business. External revenue from the Construction Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation and basis difference adjustments, decreased by 10.0%, or Won 828 billion, from Won 8,301 billion in 2023 to Won 7,473 billion in 2024 primarily due to decreases in external revenues from plant construction projects and infrastructure projects. Total revenue from the Construction Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, decreased by 4.3%, or Won 438 billion, from Won 10,268 billion in 2023 to Won 9,830 billion in 2024 as internal revenue from inter-company transactions 66 Table of Contents increased by 19.8%, or Won 390 billion, from Won 1,966 billion in 2023 to Won 2,357 billion in 2024 primarily due to an increase in the construction activities for member companies of the POSCO Group from 2023 to 2024. Logistics and Others Segment of the Infrastructure Business. External revenue from the Logistics and Others Segment of the Infrastructure Business, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 10.4%, or Won 49 billion, from Won 471 billion in 2023 to Won 422 billion in 2024, primarily due to a decrease in revenue from automation of logistical operation services provided by POSCO DX to its external customers following general slowdowns in economic activity. Total revenue from the Logistics and Others Segment of the Infrastructure Business, which includes internal revenue from inter-company transactions, increased by 4.9%, or Won 193 billion, from Won 3,946 billion in 2023 to Won 4,139 billion in 2024 as internal revenue from inter-company transactions increased by 7.0%, or Won 242 billion, from Won 3,475 billion in 2023 to Won 3,717 billion in 2024 primarily due to an increase in inter-company transactions as a result of the integration of the rechargeable battery related logistics activities. Rechargeable Battery Materials Segment. External revenue from the Rechargeable Battery Materials Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 26.3%, or Won 1,003 billion, from Won 3,816 billion in 2023 to Won 2,813 billion in 2024, primarily due to a decrease in sales of cathode and anode materials used, among others, in the production of electric batteries. Global demand for electric vehicles has decreased in recent years, which in turn decreased demand for cathode and anode materials from our key customers in 2024 compared to 2023. Total revenue from the Rechargeable Battery Materials Segment, which includes internal revenue from inter-company transactions, decreased by 20.6%, or Won 992 billion, from Won 4,822 billion in 2023 to Won 3,830 billion in 2024 as internal revenue from inter-company transactions increased by 1.1%, or Won 11 billion, from Won 1,006 billion in 2023 to Won 1,017 billion in 2024 primarily due to an increase in POSCO Future M’s revenue from sales of scrap, refractory drying and repair services to member companies of the POSCO group from 2023 to 2024. Others Segment. External revenue from the Others Segment, which does not include internal revenue from inter-company transactions that are eliminated during consolidation, decreased by 35.2%, or Won 40 billion, from Won 113 billion in 2023 to Won 73 billion in 2024, primarily due to a decrease in dividend income following disposals of certain of our investments in financial companies. Total revenue from the Others Segment, which includes internal revenue from inter-company transactions, increased by 35.1%, or Won 549 billion, from Won 1,562 billion in 2023 to Won 2,111 billion in 2024 as internal revenue from inter-company transactions increased by 40.6%, or Won 589 billion, from Won 1,450 billion in 2023 to Won 2,038 billion in 2024 primarily due to an increase in dividend payments from our subsidiaries. Cost of Sales Our cost of sales decreased by 3.8%, or Won 2,668 billion, from Won 70,639 billion in 2023 to Won 67,971 billion in 2024 primarily due to decreases in the average prices in Won terms of some of our key raw materials for POSCO, the impact of which was partially offset by (i) depreciation of the Won against the U.S. dollar, which increased the price of our imported raw materials in Won terms and (ii) an increase in the production volume of finished steel products sold by us. With respect to the principal raw materials for our steel products, the average market price of coal per wet metric ton (Premium Low Vol Coking Coal, FOB Australia Index announced by Platts) decreased from US$296 in 2023 to US$240 in 2024. In addition, the average market price of iron ore per dry metric ton (Iron Ore 62% Fe, CFR China Index announced by Platts) decreased from US$120 in 2023 to US$109 in 2024. 67 Table of Contents Gross Profit Our gross profit decreased by 14.5%, or Won 929 billion, from Won 6,417 billion in 2023 to Won 5,488 billion in 2024 primarily due to (i) a decrease in the average unit sales price in Won terms of the steel products sold by us that outpaced a decrease in the average prices in Won terms of the principal raw materials used to manufacture such products, (ii) a decrease in gross profit from POSCO Future M reflecting a slowdown in demand for anode materials, (iii) a decrease in POSCO E&C’s participation in higher margin plant and architectural works construction projects in 2024, and (iv) a decrease in gross profit from POSCO INTERNATIONAL’s trading activities. Our gross profit margin, which is gross profit as a percentage of revenue, decreased from 8.3% in 2023 to 7.5% in 2024. Selling and Administrative Expenses The following table presents a breakdown of our selling and administrative expenses and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Freight and custody expenses W 56 W 35 (21 ) (37.8 ) Sales commissions 68 102 34 49.9 Sales promotion 10 10 0 4.0 Sales insurance premium 32 32 1 1.6 Contract cost 46 35 (11 ) (23.9 ) Others 23 21 (2 ) (7.0 ) Total selling expenses W 234 W 235 1 0.6 Wages and salaries W 1,156 W 1,212 W 56 4.8 Expenses related to post-employment benefits 93 136 44 47.0 Other employee benefits 273 300 27 9.9 Travel 48 48 (0 ) (0.6 ) Depreciation 160 174 14 8.6 Amortization 96 113 17 17.8 Taxes and public dues 101 95 (6 ) (5.9 ) Rental 48 45 (3 ) (5.8 ) Advertising 107 102 (5 ) (4.6 ) Research and development 175 208 32 18.5 Service fees 235 269 34 14.4 Bad debt expenses (reversal) (18 ) 134 152 N.A. (1) Others 177 169 (8 ) (4.8 ) Total other administrative expenses W 2,652 W 3,004 353 13.3 Total selling and administrative expenses W 2,885 W 3,239 354 12.3 (1) N.A. means not applicable. Our selling and administrative expenses increased by 12.3%, or Won 354 billion, from Won 2,885 billion in 2023 to Won 3,239 billion in 2024 primarily due to (i) recognition of reversal of impairment loss on trade accounts and notes receivable in 2023 compared to bad debt expenses recognized on trade accounts and notes receivable in 2024 and (ii) increases in wages and salaries and expenses related to post-employment benefits, the impact of which was partially offset by a decrease in freight and custody expenses. Such factors were principally attributable to the following: • In 2023, we recognized reversal of impairment loss on trade accounts and notes receivable of Won 18 billion that primarily related to trading activities of POSCO INTERNATIONAL. In 2024, we recognized bad debt expenses on trade accounts and notes receivable of Won 134 billion that primarily related to construction activities of POSCO E&C. 68 Table of Contents • Our wages and salaries increased by 4.8%, or Won 56 billion, from Won 1,156 billion in 2023 to Won 1,212 billion in 2024 primarily due to increases in wage levels. • Our expenses related to post-employment benefits increased by 47.0%, or Won 44 billion, from Won 93 billion in 2023 to Won 136 billion in 2024 primarily due to the implementation of voluntary retirement programs at certain of our sales subsidiaries in 2024. • Our freight and custody expenses decreased by 37.8%, or Won 21 billion, from Won 56 billion in 2023 to Won 35 billion in 2024 primarily due to a general decrease in freight unit shipping prices. Other Operating Income and Expenses The following table presents a breakdown of our other operating income and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Recovery of allowance for other bad debt expenses W 8 W 18 W 10 136.6 Gain on disposals of investments in subsidiaries, associates and joint ventures 197 14 (183 ) (92.8 ) Gain on disposals of property, plant and equipment 9 27 17 182.7 Gain on valuation of firm commitment 11 47 35 308.0 Reversal of other provisions 9 16 7 84.6 Gain on insurance claim 13 158 144 1,101.1 Gain on bargain purchase 41 — (41 ) (100.0 ) Gain on disposal of emission rights 26 0 (26 ) (100.0 ) Others 88 108 20 23.2 Total other operating income W 402 W 387 (15 ) (3.7 ) Our other operating income decreased by 3.7%, or Won 15 billion, from Won 402 billion in 2023 to Won 387 billion in 2024 primarily due to decreases in gain on disposals of investments in subsidiaries, associates and joint ventures and gain on bargain purchase, the impact of which was partially offset by increases in gain on insurance claim and gain on valuation of firm commitment. Such factors were principally attributable to the following: • Our gain on disposals of investments in subsidiaries, associates and joint ventures decreased significantly by 92.8%, or Won 183 billion, from Won 197 billion in 2023 to Won 14 billion in 2024. In 2023, such gain related primarily to our recognition of Won 185 billion of gain on disposal of investments in associates related to reclassification of QSONE Co., Ltd. as a consolidated subsidiary following our acquisition of the remaining 50% of its shares, which had been previously classified as an investment in associates. • We recognized gain on bargain purchase of Won 41 billion in 2023 related to our acquisition of additional shares of QSONE Co., Ltd. as described above, compared to no such gain in 2024. • Our gain on insurance claim increased by 1,101.1%, or Won 144 billion, from Won 13 billion in 2023 to Won 158 billion in 2024 primarily due to significant insurance payments received in 2024 in relation to the flooding caused by Typhoon Hinnamnor at Pohang Works’ facilities in September 2022 compared to no such payments in 2023. • Our gain on valuation of firm commitment increased by 308.0%, or Won 35 billion, from Won 11 billion in 2023 to Won 47 billion in 2024 primarily due to increases in the prices of non-ferrous metals relating to certain of our firm commitments. 69 Table of Contents The following table presents a breakdown of our other operating expenses and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Other bad debt expenses(1) W 291 W 69 W (222 ) (76.3 ) Loss on disposals of assets held for sale 103 34 (69 ) (67.2 ) Loss on disposals of investments in subsidiaries, associates and joint ventures 19 73 55 289.7 Loss on disposals of property, plant and equipment 126 85 (41 ) (32.3 ) Impairment loss on property, plant and equipment 276 608 332 120.5 Impairment loss on intangible assets 130 48 (82 ) (63.1 ) Loss on valuation of firm commitment 47 40 (7 ) (14.9 ) Idle tangible asset expenses 4 3 (1 ) (17.7 ) Increase to provisions 38 85 46 120.6 Donations 67 75 8 11.7 Others 94 63 (31 ) (32.8 ) Total other operating expenses W 1,196 W 1,184 (12 ) (1.0 ) (1) In 2023, includes impairment loss on other receivables of Won 284 billion. Our other operating expenses decreased by 1.0%, or Won 12 billion, from Won 1,196 billion in 2023 to Won 1,184 billion in 2024 primarily due to decreases in other bad debt expenses, impairment loss on intangible assets and loss on disposals of assets held for sale, the impact of which was substantially offset by an increase in impairment loss on property, plant and equipment. Such factors were principally attributable to the following: • Our other bad debt expenses decreased by 76.3%, or Won 222 billion, from Won 291 billion in 2023 to Won 69 billion in 2024. In 2023, such impairment loss related primarily to projects of FQM Australia Nickel. In 2024, such impairment loss related primarily to loans and other accounts receivables of POSCO INTERNATIONAL, POSCO E&C and POSCO Canada Ltd. • Our impairment loss on intangible assets decreased by 63.1%, or Won 82 billion, from Won 130 billion in 2023 to Won 48 billion in 2024. In 2023, POSCO Canada Ltd. recognized impairment loss on intellectual property rights of Won 89 billion related to its investment-in-kind of the assets and liabilities of Greenhills Mine Unincorporated Joint Venture to a new partnership established by Teck Coal Partnership. In 2024, our impairment loss on intangible assets related primarily to impairment losses on goodwill relating to POSCO VST Co., Ltd. • Our loss on disposals of assets held for sale decreased by 67.2%, or Won 69 billion, from Won 103 billion in 2023 to Won 34 billion in 2024. In 2023, such loss on disposal of assets held for sale related primarily to our disposal of CSP – Compania Siderurgica do Pecem. In 2024, such loss on disposals of assets held for sale primarily related to the disposal of POSCO Canada Ltd.’s interest in the Greenhills Mine Unincorporated Joint Venture. • Our impairment loss on property, plant and equipment increased by 120.5%, or Won 332 billion, from Won 276 billion in 2023 to Won 608 billion in 2024. In 2023, such impairment loss primarily related to termination of operations of certain lithium production facilities located in Gwangyang and Argentina. In 2024, such impairment loss primarily related to impairment losses on certain anode and cathode materials facilities that were in long-term idle status or that did not meet anticipated economic performance. 70 Table of Contents Operating Profit Due to the factors described above, our operating profit decreased by 47.0%, or Won 1,286 billion, from Won 2,738 billion in 2023 to Won 1,452 billion in 2024. Our operating profit margin, which is operating profit as a percentage of revenue, decreased from 3.6% in 2023 to 2.0% in 2024. Share of Profit (Loss) of Equity-Accounted Investees We recorded share of profit of equity-accounted investees (net) of Won 270 billion in 2023 and share of loss of equity-accounted investees (net) of Won 256 billion in 2024. In 2023, we recognized a net gain from our proportionate share of equity-accounted investees of Won 270 billion primarily due to our share of gains of Won 292 billion from Roy Hill Holdings Pty Ltd., Won 50 billion from South-East Asia Gas Pipeline Company Ltd., Won 39 billion from AES Mong Duong Power Company Limited and Won 35 billion from POSCO-NPS Niobium LLC, the aggregate impact of which was partially offset by our share of loss of Won 112 billion of FQM Australia Holdings Pty Ltd. and Won 82 billion of SNNC. See Note 11 to the Consolidated Financial Statements. In 2024, we recognized a net loss from our proportionate share of equity-accounted investees of Won 256 billion primarily due to our share of losses of Won 266 billion from NCR LLC, Won 117 billion from Zhejiang Huayou-POSCO ESM Co., Ltd., Won 62 billion from SNNC and Won 49 billion from HBIS-POSCO Automotive Steel Co., Ltd., the aggregate impact of which was partially offset by our share of gain of Won 203 billion from Roy Hill Holdings Pty Ltd. See Note 11 to the Consolidated Financial Statements. 71 Table of Contents Finance Income and Finance Costs The following table presents a breakdown of our finance income and costs and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Interest income W 502 W 577 W 75 14.9 Dividend income 50 77 27 53.4 Gain on foreign currency transactions 1,661 1,420 (241 ) (14.5 ) Gain on foreign currency translations 293 1,188 895 305.9 Gain on derivatives transactions 333 438 105 31.5 Gain on valuations of derivatives 201 899 697 346.8 Gain on disposals of financial assets at fair value through profit or loss 204 165 (39 ) (19.3 ) Gain on valuations of financial assets at fair value through profit or loss 572 201 (371 ) (64.9 ) Gain on valuations of financial liabilities at fair value through profit or loss — 239 239 N.A. (1) Others 15 9 (6 ) (38.5 ) Total finance income W 3,831 W 5,212 1,381 36.0 Interest expenses W 1,001 W 1,052 W 50 5.0 Loss on foreign currency transactions 1,595 1,448 (147 ) (9.2 ) Loss on foreign currency translations 706 1,900 1,195 169.2 Loss on derivatives transactions 320 318 (2 ) (0.8 ) Loss on valuations of derivatives 77 109 31 40.2 Loss on disposal of trade accounts and notes receivable 85 83 (2 ) (2.4 ) Loss on disposals of financial assets at fair value through profit or loss 13 28 15 110.0 Loss on valuations of financial assets at fair value through profit or loss 51 81 29 57.0 Loss on valuations of financial liabilities at fair value through profit or loss 306 — 306 (100.0 ) Others 48 63 15 31.9 Total finance costs W 4,203 W 5,081 878 20.9 (1) N.A. means not applicable. Our net loss on foreign currency translations increased by 72.5%, or Won 300 billion, from Won 413 billion in 2023 to Won 713 billion in 2024, as the Won depreciated against the U.S. dollar at year-end in 2023 and further depreciated (to a much greater extent) at year-end in 2024. In terms of the Market Average Exchange Rate, the Won depreciated against the U.S. dollar from Won 1,267.3 to US$1.00 as of December 31, 2022 to Won 1,289.4 to US$1.00 as of December 31, 2023, and further depreciated to Won 1,470.0 to US$1.00 as of December 31, 2024. In addition, we recognized net gain on foreign currency transactions of Won 65 billion in 2023 compared to net loss on foreign currency transactions of Won 28 billion in 2024, as the average value of the Won against the U.S. dollar depreciated in 2023 and further depreciated (to a greater extent) in 2024. The Market Average Exchange Rate, which was Won 1,267.3 to US$1.00 as of December 31, 2022, depreciated during 2023 to an average of Won 1,305.4 to US$1.00 in 2023 and further depreciated during 2024 to an average of Won 1,364.0 to US$1.00 in 2024. Against such fluctuations, our net gain on valuations of derivatives increased by 538.7%, or Won 666 billion, from Won 124 billion in 2023 to Won 790 billion in 2024, and our net gain on derivatives transactions increased by 836.5%, or Won 107 billion, from Won 13 billion in 2023 to Won 120 billion in 2024. 72 Table of Contents Our net gain on valuations of financial assets at fair value through profit or loss decreased by 76.9%, or Won 400 billion, from Won 521 billion in 2023 to Won 121 billion in 2024. In 2023, we recognized such net gain as interest rates in Korea generally increased in the first half of the year before stabilizing in the second half of the year, which in turn resulted in a gain on valuation of financial assets. In 2024, such net gain decreased primarily due to a decrease in the volume of short-term financial products held. We recognized net loss on valuations of financial liabilities at fair value through profit or loss of Won 306 billion in 2023 compared to net gain on valuations of financial liabilities at fair value through profit or loss of Won 239 billion in 2024. In 2023, we recognized such net loss as the market price of our shares into which the exchangeable bonds we had issued increased, which in turn resulted in a loss on valuation of financial liabilities. In 2024, we recognized a net gain as the market price of our shares decreased, which in turn resulted in a gain on valuation of financial liabilities. Our interest income increased by 14.9%, or Won 75 billion, from Won 502 billion in 2023 to Won 577 billion in 2024 primarily due to an increase in our average balance of interest-earning financial assets, which impact was partially offset by a general decrease in interest rates in Korea and abroad. Our interest expenses increased by 5.0%, or Won 50 billion, from Won 1,001 billion in 2023 to Won 1,052 billion in 2024 primarily due to re-financing of matured borrowings at higher interest rates than the original interest rates of such borrowings. Profit before Income Taxes Due to the factors described above, our profit before income taxes decreased by 49.7%, or Won 1,309 billion, from Won 2,635 billion in 2023 to Won 1,326 billion in 2024. The following table presents our profit and loss by segment, prior to adjusting for goodwill and corporate fair value adjustments, elimination of inter-segment losses (profits), income tax expense and basis difference, and changes therein for 2023 and 2024. Changes For the Year Ended December 31, 2023 versus 2024 2023 2024 Amount % (In billions of Won) Steel Segment W 1,241 W 691 W (550 ) (44.3 ) Infrastructure Business — Trading Segment 724 537 (187 ) (25.9 ) Infrastructure Business — Construction Segment 183 (194 ) (378 ) N.A. (1) Infrastructure Business — Logistics and Others Segment 171 104 (67 ) (39.2 ) Rechargeable Battery Materials Segment (236 ) (635 ) (399 ) 169.5 Others Segment 827 1,596 769 92.9 Goodwill and corporate fair value adjustments 172 (65 ) (237 ) N.A. (1) Elimination of inter-segment profit (1,238 ) (1,087 ) 151 (12.2 ) Income tax expense(1) 789 304 (486 ) (61.5 ) Basis difference adjustments(2) 0 75 75 27,483.1 Profit before income taxes W 2,635 W 1,326 (1,309 ) (49.7 ) (1) Income tax expense presented herein reflects amounts determined under K-IFRS for purposes of segment profit measurement and may differ from income tax expense presented in the consolidated financial statements under IFRS. (2) Basis difference adjustments are related to the difference in recognizing revenue and expenses, including income tax expense, of the Construction Segment of the Infrastructure Business in connection with the development and sales of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. 73 Table of Contents Income Tax Expense Our income tax expense decreased by 59.3%, or Won 468 billion, from Won 789 billion in 2023 to Won 321 billion in 2024, primarily due to the decrease in profit before income tax. Our effective tax rate decreased from 30.0% in 2023 to 24.2% in 2024. See Note 35 to the Consolidated Financial Statements. In 2023, our effective tax rate of 30.0% was higher than the statutory rate of 26.4% primarily due to Won 151 billion of income tax expense resulting from tax audits of us and our subsidiaries. Profit Due to the factors described above, our profit decreased by 45.6%, or Won 841 billion, from Won 1,846 billion in 2023 to Won 1,005 billion in 2024. Our profit margin, which is profit as a percentage of revenue, decreased from 2.4% in 2023 to 1.4% in 2024. Item 5.B.  Liquidity and Capital Resources The following table sets forth the summary of our cash flows for the periods indicated. For the Year Ended December 31, 2023 2024 2025 (In billions of Won) Net cash provided by operating activities W 6,168 W 6,664 W 4,572 Net cash used in investing activities (7,388 ) (4,487 ) (6,687 ) Net cash provided by (used in) financing activities (179 ) (2,302 ) 2,403 Effect of exchange rate fluctuation on cash held 17 222 (6 ) Net increase (decrease) in cash and cash equivalents (1,382 ) 97 282 Cash and cash equivalents at beginning of the period 8,053 6,671 6,768 Cash and cash equivalents at end of the period 6,671 6,768 7,050 Capital Requirements Historically, uses of cash consisted principally of purchases of property, plant and equipment and other assets and repayments of outstanding debt and payments of dividends. From time to time, we also use cash for repurchases of our shares as well as investments related to our diversification efforts. Net cash used in investing activities was Won 7,388 billion in 2023, Won 4,487 billion in 2024 and Won 6,687 billion in 2025. Our cash outflows for acquisition of property, plant and equipment were Won 6,733 billion in 2023, Won 7,670 billion in 2024 and Won 5,665 billion in 2025. We currently expect our cash outflows for acquisition of property, plant and equipment and investments in joint ventures and associates to be approximately Won 11.3 trillion in 2026, which we may adjust on an on-going basis subject to market demand for our products, the production outlook of the global steel industry and global economic conditions in general. We may delay or not implement some of our current capital expenditure plans based on our assessment of such market conditions. We had net proceeds from disposal of short-term financial instruments of Won 344 billion in 2023, Won 3,667 billion in 2024 and Won 106 billion in 2025. In our financing activities, we used cash of Won 4,461 billion in 2023, Won 7,533 billion in 2024 and Won 5,158 billion in 2025 for repayments of borrowings. We used cash of Won 815 billion in 2023, Won 844 billion in 2024 and Won 915 billion in 2025 for payments of cash dividends. In 2023, we also used Won 340 billion for repayment of hybrid bonds. In 2024, we used cash of Won 92 billion for acquisition of treasury shares. We did not acquire any treasury shares in 2023 or 2025. In recent years, we have also selectively considered various opportunities to acquire or invest in companies that may complement our businesses, as well as invest in overseas resources development 74 Table of Contents projects. We may require additional capital for such acquisitions or entering into other strategic relationships. Other than capital required for such activities, we anticipate that capital expenditures, repayments of outstanding debt and payments of cash dividends will represent the most significant uses of funds for the next several years. Payments of contractual obligations and commitments will also require considerable resources. In our ordinary course of business, we routinely enter into commercial commitments for various aspects of our operations, including raw materials purchase obligations and long-term shipping service contracts, as well as issue guarantees for indebtedness of our related parties and others. For our contingent liabilities on outstanding guarantees provided by us, see Note 38 to the Consolidated Financial Statements. Our purchase obligations include supply contracts to purchase iron ore, coal, nickel, LNG and other raw materials. These contracts generally have terms of one to ten years and the long-term contracts provide for periodic price adjustments according to the market prices. As of December 31, 2025, 48 million tons of iron ore and 18 million tons of coal remained to be purchased under long-term contracts. In addition, POSCO entered into an agreement with Tangguh LNG Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. In order to compensate for a decrease in purchase volume in 2023, POSCO has agreed to purchase 120 thousand tons of LNG after completion of such 20-year term, from September 2025 to December 2026. The purchase price under the agreement with Tangguh LNG Consortium is variable based on the monthly standard oil price (as represented by the Japan Customs cleared Crude Price), subject to a ceiling. POSCO INTERNATIONAL SINGAPORE PTE LTD. (“POSCO INTERNATIONAL SINGAPORE”) entered into a purchase agreement with Cheniere Marketing, LLC to purchase 370 thousand tons of LNG annually for 15 years commencing in November 2026, with an option to extend the agreement for five years. The purchase price is subject to adjustments based on the U.S. Henry Hub Natural Gas Spot Price. POSCO entered into an agreement to purchase such LNG from POSCO INTERNATIONAL SINGAPORE. Capital Resources We have traditionally met our working capital and other capital requirements principally from cash provided by operations, while raising the remainder of our requirements primarily through long-term debt and short-term borrowings. We expect that these sources will continue to be our principal sources of cash in the future. From time to time, we may also generate cash through issuance of hybrid bonds and sale of treasury shares and our holdings in available-for-sale securities. Our net cash provided by operating activities increased by 8.0%, or Won 496 billion, from Won 6,168 billion in 2023 to Won 6,664 billion in 2024. Our profit decreased from Won 1,846 billion in 2023 to Won 1,005 billion in 2024. However, we recorded cash outflow related to increase in trade accounts and notes receivable of Won 983 billion in 2023 compared to cash inflow related to decrease in trade accounts and notes receivable of Won 1,354 billion in 2024 due to better management of our trade accounts and notes receivables. In addition, our cash used for income tax payments decreased from Won 727 billion in 2023 to Won 554 billion in 2024 and our cash generated from interest received increased from Won 448 billion in 2023 to Won 571 billion in 2024. Such positive impacts on our cash flows were partially offset by (i) cash outflow related to other current liabilities of Won 1,020 billion in 2024 compared to cash inflow related to other current liabilities of Won 15 billion in 2023 and (ii) a decrease in our cash inflow related to build up of our inventories from Won 1,313 billion in 2023 to Won 914 billion in 2024. Our net cash provided by operating activities decreased by 31.4%, or Won 2,092 billion, from Won 6,664 billion in 2024 to Won 4,572 billion in 2025. Our profit decreased from Won 1,005 billion in 2024 to Won 527 billion in 2025. In addition, we recorded cash inflow related to decrease in trade 75 Table of Contents accounts and notes receivable of Won 1,354 billion in 2024 compared to cash outflow related to increase in trade accounts and notes receivable of Won 649 billion in 2025. Furthermore, our cash used for income tax payments increased from Won 554 billion in 2024 to Won 840 billion in 2025 and our cash generated from dividends received decreased from Won 745 billion in 2024 to Won 438 billion in 2025. Such impacts on our cash flows were partially offset by cash outflow related to other current liabilities of Won 1,020 billion in 2024 compared to cash inflow related to other current liabilities of Won 389 billion in 2025. We had net proceeds from borrowings, after adjusting for repayments of borrowings, Won 3,356 billion in 2023, net repayment of borrowings, after adjusting for proceeds from borrowings, of Won 1,633 billion in 2024 and net proceeds from borrowings, after adjusting for repayments of borrowings, of Won 235 billion in 2025. We had net repayment of short-term borrowings, after adjusting for proceeds of short-term borrowings, of Won 2,524 billion in 2023, net repayment of short-term borrowings, after adjusting for proceeds from short-term borrowings, of Won 218 billion in 2024 and net proceeds from short-term borrowings, after adjusting for repayments of short-term borrowings, of Won 2,159 billion in 2025. Long-term borrowings, excluding current installments, were Won 15,011 billion as of December 31, 2023, Won 14,882 billion as of December 31, 2024 and Won 16,375 billion as of December 31, 2025. Total short-term borrowings and current installments of long-term borrowings were Won 10,959 billion as of December 31, 2023, Won 11,116 billion as of December 31, 2024 and Won 12,117 billion as of December 31, 2025. We periodically increase our short-term borrowings and adjust our long-term borrowings depending on changes in our capital requirements. For the maturity profile of our borrowings, their currency denomination and interest rates, see Notes 17 and 23 to the Consolidated Financial Statements. We continually take into consideration various factors when meeting our financial requirements, including financial market conditions, specific funding needs at a given time, and hedging requirements to address our market risks such as exchange rate risk and interest rate risk. From time to time, we also generate cash from the sale of our treasury shares. Our net borrowings-to-equity ratio, which is calculated by deducting cash and cash equivalents from total borrowings and dividing the net amount by our total equity, was 32.38% as of December 31, 2023, 31.30% as of December 31, 2024 and 34.36% as of December 31, 2025. We believe that we have sufficient working capital for our current requirements and that we have a variety of alternatives available to us to satisfy our liquidity requirements to the extent that they are not met by funds generated by operations, including the issuance of debt and equity securities and bank borrowings denominated in Won and various foreign currencies. However, our ability to rely on some of these alternatives could be affected by factors such as the liquidity of the Korean and the global financial markets, prevailing interest rates, our credit rating and the Government’s policies regarding Won currency and foreign currency borrowings. For a discussion of our use of financial instruments for hedging purposes, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk.” Liquidity We had working capital (current assets minus current liabilities) of Won 24,264 billion as of December 31, 2023, Won 21,324 billion as of December 31, 2024 and Won 20,514 billion as of December 31, 2025. Our holdings of cash and cash equivalents (which do not include cash and cash equivalents categorized under “assets held for sale”) were Won 6,671 billion as of December 31, 2023, Won 6,768 billion as of December 31, 2024 and Won 7,050 billion as of December 31, 2025. As of December 31, 2025, we held approximately 59% of such cash and cash equivalents denominated in Won and the remainder denominated in foreign currencies. Our holdings of other receivables (current assets) and other short-term financial assets were Won 13,351 billion as of December 31, 2023, Won 10,761 billion as of December 31, 2024 and Won 10,699 billion as of December 31, 2025. As of December 31, 2025, approximately 23% of our cash and cash equivalents, other receivables and other 76 Table of Contents short-term financial assets were held outside of Korea, which we expect to use in our operations abroad, including capital expenditure activities. In the event that such assets are needed for our operations in Korea, such amounts are typically not restricted under local laws from being used in Korea. In addition, we believe that there are no material tax implications in the event our foreign subsidiaries elect to grant cash dividends to us. POSCO had total available credit lines of Won 3,000 billion as of December 31, 2025, Won 590 billion of which was used as of such date. We have not had, and do not believe that we will have, difficulty gaining access to short-term financing sufficient to meet our current requirements. Our liquidity is affected by exchange rate fluctuations. See “— Overview — Exchange Rate Fluctuations.” Capital Expenditures and Capacity Expansion Our cash outflows for acquisition of property, plant and equipment were Won 6,733 billion in 2023, Won 7,670 billion in 2024 and Won 5,665 billion in 2025. We currently expect our cash outflows for acquisition of property, plant and equipment and investments in joint ventures and associates to be approximately Won 11.3 trillion in 2026, which we may adjust on an on-going basis subject to market demand for our products, the production outlook of the global steel industry and global economic conditions in general. We may delay or not implement some of our current capital expenditure plans based on our assessment of such market conditions. Our current plan for capital investment in production facilities emphasizes capacity rationalization, increased production of higher value-added products, improvements in the efficiency of older facilities in order to reduce operating costs and construction and expansion of facilities related to our non-steel businesses. The following table sets out the major items of our capital expenditures as of December 31, 2025: Project Expected Completion Date Total Cost of Project Estimated Remaining Cost of Completion as of December 31, 2025 (In billions of Won) Restoration of Pohang Phase 3 coke ovens February 2030 W 5,886 W 4,230 Construction of anode/cathode and lithium ore commercialization plant July 2027 7,388 2,181 Construction of Gwangyang LNG terminal May 2027 994 261 Item 5.C.  Research and Development, Patents and Licenses, Etc. We maintain research and development programs to carry out basic research and applied technology development activities. As of December 31, 2025, POSCO Technical Research Laboratories, which engages in research and development efforts primarily in the areas of advanced steel manufacturing technologies, employed 628 personnel, including 432 researchers. As of December 31, 2025, our New Experience of Technology Hub, which focuses on research and development relating to (i) artificial intelligence, (ii) raw materials for rechargeable batteries and (iii) hydrogen and other environmentally-friendly energy solutions, employed 276 personnel, including 217 researchers. Our technology development department also works closely with the Pohang University of Science & Technology, Korea’s first research-oriented college founded by us in 1986, and the Research Institute of Industrial Science and Technology, Korea’s first private comprehensive research institute founded by us in 1987. We also established POSCO Research Institute (POSRI) in 1994, which engages in research activities and consulting services. Our research and development program has filed 48,713 industrial rights applications relating to steel-making technology, 10,155 of which were registered as of December 31, 2025, and has 77 Table of Contents successfully applied many of these to the improvement of our manufacturing process. In addition, our research and development program has filed 2,885 industrial rights applications relating to electric vehicles and rechargeable battery materials technology, 1,684 of which were registered as of December 31, 2025. Item 5.D.  Trend Information These matters are discussed under Item 5.A. and Item 5.B. above where relevant. Item 5.E.  Critical Accounting Estimates Our consolidated financial statements are prepared in accordance with IFRS as issued by IASB. See Note 2 to the Consolidated Financial Statements for a discussion of our critical accounting estimates. Item 6.  Directors, Senior Management and Employees