HANATOUR SERVICE INC.

FY2025 ANNUAL REPORT

I. COMPANY OVERVIEW

1. Business Purpose

Purpose

Remark

1. General Travel Business (General Travel Agency Services)

2. Ticketing and Sales of Airline and Ferry Tickets

3. Sales of Local Souvenirs

4. Issuance of Sales Commitment Certificates

5. Real Estate Sales and Leasing

6. Value-Added Telecommunications Services

7. Development and Distribution of Computer Software

8. Mail Order and Telemarketing Business and Mail-Order Brokerage Business

9. Printing and Publishing

10. Publication of Regular and Irregular Periodicals

11. Operation of Training Academies for Tourism Professionals

12. Transportation Services (Chartered Bus Operations)

13. Internet Business (Content Development and Provision, Internet Marketing)

14. E-commerce and Information Processing Services

15. Advertising Services (Internet and Outdoor Advertising)

16. Information Processing Business and Information and Communication-Related Services

17. Web Hosting and Website Development

18. Warehousing Services

19. Tourist Hotel and Lodging Business

20. Operation of Ancillary Facilities Related to Tourist Hotels and Lodging

21. Businesses Necessary for the Operation of Tourist Hotels and Lodging

22. Investment, Development, Operation, and Asset Management of Domestic and Overseas

Real Estate

23. Real Estate Sales Agency Services

24. Management and Licensing of Intellectual Property Rights, Including Brands and Trademarks

25. Sale and Service of Intangible Assets (Knowledge and Information)

26. Production and Distribution of Films, Broadcasts, Videos, and Other Cultural Content

27. Production and Sale of Digital Content

28. Operation and Management of Performance Venues

29. Performance Planning and Production

30. Character Licensing and Merchandising Business

31. Exhibition and Event Agency Services

32. Internet Broadcasting Business

33. Tourism Development, and Business, Marketing, and Management Consulting Services

34. Educational Services

35. Operation of Remote Lifelong Education Facilities

36. Gift Certificate Sales

37. Wedding Consulting Services

38. Operation of Amusement Parks

39. Operation and Management of Integrated Leisure Facilities

40. Tourist Attraction Development

41. Comprehensive Recreation Business

42. International Conference Planning Services

43. Camper Van (RV) Business

44. Sales of Bonded Goods and Tourism Products

Purpose

Remark

45. Accommodation Business

46. Accommodation Reservation Services

47. Web Portal and Internet Information Brokerage Services

48. Franchise Business

49. Restaurant Business

50. Leasing and Subleasing of Commercial Properties

51. Ticketing and Agency Services for Cultural, Artistic, and Sports Events

52. Development and Sales of Databases Related to Culture, Arts, and Sports

53. Production and Investment in Cultural Projects Including Performances and Films

54. Hosting, Sponsorship, and Promotion of Various Events and Cultural Projects

55. Import and Brokerage of Performance Rights

56. Brokerage Services for Copyrights and Neighboring Rights

57. Membership Sales and Brokerage

58. Overseas Study Agency Services

59. Operation of Lifelong Learning Facilities

60. Loan and Other Financial Support Services

61. Electronic Financial Services

62. Planning and Promotion Agency for Performances, Concerts, and Exhibitions

63. Credit Card Services

64. Real Estate Development

65. Insurance Agency Business

66. Location Information Business and Location-Based Services Business

67. All Ancillary Businesses Related to the Above

2. Primary Business

General Travel Business (General Travel Agency Services)

3. Company History

A. Major Milestones Since Establishment

Date

Important Changes

Oct. 25, 1993

Established Kookjin Travel Co., Ltd. (Capital: 350 million won)

55-4 Seosomun-dong, Jung-gu, Seoul

Dec. 01, 1995

Set the company policy in ‘comprehensive wholesales’ and launched ‘Hana Tour’,

independent package brand, and commenced the agency sales

Nov. 28, 2000

Listed on KOSDAQ (commenced trading)

Nov. 10, 2006

Listed on LSE(London Stock Exchange)

Nov. 01, 2011

Listed on KOSPI

Jan. 01, 2012

CEO changed - SangHwan Park and HuynSyuk Choi

Mar. 25, 2016

CEO changed - SangHwan Park and JinKook Kim

Mar. 26, 2020

CEO changed - JinKook Kim and MiSun Song

Mar. 25, 2022

CEO changed - MiSun Song and KyungKen Yuk

Dec. 31, 2022

CEO changed - MiSun Song

B. Change of Corporate Name

Date

Changes

Mar. 6, 1996

Changed the name from Kookjin Travel Co., Ltd. to Hana Tour Co., Ltd.

** Purpose is to unify the brand name and company image

C. Relocation of Head Office

Date

Location

Oct. 25, 1993

55-4 Seosomun-dong, Jung-gu, Seoul

Mar. 22, 1996

10F Inju Building, Tour cost fees-1 Seorin-dong, Jongro-gu, Seoul

Oct. 01, 1997

11F Hanmi Building, 1 Gonpyeong-dong, Jongro-gu, Seoul

Jun. 15, 2005

1 Gongpyeong-dong, Jongro-gu, Seoul

Jul. 01. 2013

HanaTour Bldg. 41, Insadon 5-gil, Jongno-gu, Seoul

D. Mergers, Spin-offs, Stock Swaps, Asset Transfers, and Other Key Events

Not applicable.

4. Domestic Office Network

Classification

Location

Main

Business

Head Office

41, Insadong 5-gil, Jongno-gu, Seoul, Republic of Korea

General

Travel

Business

and

Ticketing

Busan Sales Office

7, Chungjang-daero, Jung-gu, Busan, Republic of Korea

Airport Office

(Terminal1)

271, Gonghang-ro, Jung-gu, Incheon, Republic of Korea

Airport Office

(Commodity Support)

124, Yeongjong-daero, Jung-gu, Incheon, Republic of Korea

Suwon Sales Office

268, Hyowon-ro, Gwonseon-gu, Suwon-si, Gyeonggi-do, Republic of

Korea

Seongnam Sales Office

42, Jangmi-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Republic of

Korea

Bucheon Sales Office

203, Buil-ro, Wonmi-gu, Bucheon-si, Gyeonggi-do, Republic of Korea

Daegu Sales Office

648, Gukchaebosang-ro, Jung-gu, Daegu, Republic of Korea

Daejeon Sales Office

69, Dunsanseo-ro, Seo-gu, Daejeon, Republic of Korea

Gwangju Sales Office

136, Geumnam-ro, Buk-gu, Gwangju, Republic of Korea

Gangneung Slaes Office

2141, Gyeonggang-ro, Gangneung-si, Gangwon-do, Republic of Korea

Chuncheon Slaes Office

110, Jungang-ro, Chuncheon-si, Gangwon-do, Republic of Korea

Wonju Sales Office

65, Neungnadong-gil, Wonju-si, Gangwon-do, Republic of Korea

Jeonju Sales Office

269, Hongsan-ro, Wansan-gu, Jeonju-si, Jeollabuk-do, Republic of Korea

Suncheon Sales Office

15, Chunghyo-ro, Suncheon-si, Jeollanam-do, Republic of Korea

Changwon Sales Office

754, Changwon-daero, Seongsan-gu, Changwon-si, Gyeongsangnam-

do, Republic of Korea

Cheongju Sales Office

820, Bangseo-dong, Sangdang-gu, Cheongju-si, Chungcheongbuk-do,

Republic of Korea

Cheonan Sales Office

Huimang-ro 46beon-gil, Baebang-eup, Asan-si, Chungcheongnam-do,

Republic of Korea

Sangil-dong Office

26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea

Seongnam Office

298, Siheung-dong, Sujeong-gu, Seongnam-si, Gyeonggi-do, Republic of

Korea

Gimhae Airport Office

108, Gonghang Jinin-ro, Gangseo-gu, Busan, Republic of Korea

Incheon Airport

Office_T2

446, 2terminal-daero, Jung-gu, Incheon, Republic of Korea

5. Employee Status (As of December 31, 2025)

(Unit: person)

Classification

Office & Operation

Men

628

Women

709

Total

1,337

6. Organizational Structure

II. INFORMATION ON SHARES

1. Share Capital Overview

A. Total Number of Stocks (As of December 31, 2025)

(Unit: share)

Classification

Types of stocks

Remark

Common stock

Total

I. Total number of stocks to be issued

20,000,000

II. Total number of stocks issued to this point

15,489,932

III. Total number of stocks reduced to this point

1. Reduction of capital

2. Retirement of shares

3. Repayment of redeemed

stocks

4. Others

IV. Total number of stocks issued (II-III)

15,489,932

V. Treasury stocks

445,000

VI. Outstanding stocks (IV-V)

15,044,932

B. Changes in Share Capital

(1) Capital Increases

(Unit: share, won)

Date of stock

issuance

Type of issuance

Contents of issued stocks

Types

Quantity

Par value

Issuance

amount

per stock

Remark

Oct. 25, 1993

Common stock

35,000

10,000

Capital

for

incorpora

tion

Jun. 12, 1996

Capital increase with

consideration

(shareholder allotment)

Common stock

21.500

10,000

Jul. 25, 1997

Capital increase with

consideration

(shareholder allotment)

Common stock

35,840

10,000

Oct.01, 1997

Common stock

184,680

5,000

1 to 2

Dec. 02, 1999

Capital increase with

consideration

(shareholder allotment)

Common stock

115,320

5,000

Dec. 23, 1999

Capital increase with

consideration

(shareholder allotment)

Common stock

60,000

5,000

10,000

May, 05, 2000

Stock Split

Common stock

3,600,000

500

1 to 10

Nov. 16, 2000

Capital increase with

consideration

(shareholder allotment)

Common stock

900,000

500

2,850

Aug. 26, 2003

Capital increase

without consideration

Common stock

3,764,034

500

Oct. 27,2004

Capital increase with

consideration

(shareholder allotment)

Common stock

76,322

500

11,850

Oct. 27,2004

Bonus Issue

Common stock

1,977,029

500

Nov. 11, 2006

Capital increase

Common stock

1,161,000

500

55,711

Feb. 28, 2020

Capital increase with

consideration (Third-

party allotment)

Common stock

2,323,000

500

55,500

Jun. 29, 2022

Capital increase with

consideration (Rights

offering)

Common stock

2,100,000

500

49,800

(2) Capital Decreases

(Unit: share, won)

Date of

capital

reduction

Type

Purpose

Contents of reduced stocks

Types

Quantity

Face

value per

stock

Amount of

acquisition per

stock

(for capital

decrease for

consideration)

Remark

C. Scheduled Changes in Share Capital

No applicable

2. Dividend Information

A. Dividends for the Past Three Fiscal Years

Classification

33rd Term

32nd Term

31st Term

Face value per stock (won)

500

(Consolidated) Current net income (million won)

48,092

99,079

47,029

(Separated) Current net income (million won)

19,907

60,094

30,819

(Consolidated) Net income per share (won)

2,062

5,259

3,036

Total amount of cash dividend (million won)

18,016

35,627

77,450

Total amount of stock dividend (million won)

Dividend payout ratio (%)

37.4

36.0

164.7

Yield rate of cash dividend (%)

Common stock

2.4

4.2

7.8

Preferred stock

Yield rate of stock dividend (%)

Common stock

Preferred stock

Cash dividend per share (won)

Common stock

1,200

2,300

5,000

Preferred stock

Stock dividend per share

Common stock

Preferred stock

III. CONTENTS OF THE BUSINESS

1. Business Overview

The global travel market fully emerged from the prolonged impact of the COVID-19 pandemic that began in 2020

and entered a phase of full normalization. However, in 2025, the recovery momentum in travel demand was

partially affected by various domestic and external uncertainties, creating a less favorable business environment.

Despite these challenges, the Company achieved record-high operating profit in its history as the benefits of the

business transformation and operational efficiency initiatives implemented since the pandemic became

increasingly evident.

In 2025, Hanatour recorded consolidated annual operating profit of KRW 57.6 billion. This record level of

profitability was driven by the continued success of “Hanapack 2.0,” a mid-to-high-end package product that

fundamentally restructured traditional package offerings with a strong emphasis on customer satisfaction;

productivity improvements through company-wide AI adoption; enhanced cost efficiency through the

reorganization of the subsidiary portfolio; and the expansion of online sales channels.

Mid-to-high-end packages centered on Hanapack 2.0 accounted for more than 50% of the Company’s total

annual package sales volume in 2025, demonstrating its successful establishment in the post-pandemic market.

Customer satisfaction also improved significantly compared to pre-pandemic levels. According to the Hanatour

Customer Satisfaction Index (HCSI), customer satisfaction for the Company’s package products exceeded 85

points in 2025, representing a substantial improvement from the pre-pandemic average of 75 points.

The Company’s online channel expansion strategy also delivered meaningful results. In December 2025,

Hanatour’s monthly online users reached 1.39 million, while cumulative online membership increased by

approximately 850 thousand YoY to 9.2 million. Mobile app MAU also reached an all-time high of 790 thousand,

supported by differentiated online content initiatives such as the AI concierge service “H-AI.” The traffic gap

between Hanatour and traditional package travel agencies continued to widen, further solidifying the Company’s

dominant market leadership position. Online sales accounted for 44% of total package bookings in 2025,

compared to 43% in the previous year and 19% prior to the pandemic. The growth in online traffic and sales

contribution has improved short-term profitability through lower sales commission expenses, while also

supporting long-term diversification of the customer base and expansion into the FIT (Free Independent Traveler)

segment.

The Company also achieved meaningful progress in productivity enhancement through AI transformation.

Leveraging its next-generation IT system introduced prior to the pandemic, Hanatour further optimized

operational processes and data management systems. In addition, the proactive adoption of AI technologies

across applicable business areas has driven meaningful improvements in customer experience, operational

efficiency, and overall competitive capabilities.

Through “Hanapack 3.0,” the Company accelerated the discovery of new travel destinations that had not

previously been offered through traditional package products and diversified its portfolio of theme-based travel

offerings featuring new travel concepts. Building on the success of its “Mingling Tour” products, Hanatour

diversified offerings targeting travelers in their 20s and 30s, expanding its customer base beyond traditional

package travelers to include younger generations. In addition, the Company strengthened its presence in the FIT

market by expanding bundled products and FIT standalone offerings based on its differentiated product

competitiveness and sourcing capabilities, achieving meaningful growth not only in the traditional package

market but also in the FIT travel segment.

2. Market Share Rate

Hanatour's market share in the travel sector is calculated by dividing the number of total departures arranged by

Hanatour by the total number of departures from Korea, excluding airline crews.

The total number of departures from Korea is published by the Korea Tourism Organization (KNTO), while the

total departures arranged by Hanatour are reported to the Korea Association of Travel Agents (KATA) by the

company.

Year

2025

2024

2023

Number of

travelers

Total

Departures

from

HANATOUR

Total

Departures

of Korea

Total

Departures

from

HANATOUR

Total

Departures

of Korea

Total

Departures

from

HANATOUR

Total

Departures

of Korea

4,117,735

27,741,165

3,839,176

26,958,995

2,595,098

21,293,382

14.84%

14.24%

12.19%

3. Industry Characteristics

The travel industry is defined by four distinct characteristics:

First, it is highly seasonal. Pricing and marketing strategies fluctuate according to seasonal trends. However, due

to the adoption of a five-day workweek, a more mature society, and evolving corporate cultures, seasonal

demand disparities are gradually narrowing. As a result, travel agencies are increasingly required to adjust their

product offerings and marketing approaches accordingly.

Second, the industry operates with time-sensitive, non-storable inventory. Similar to the airline and hotel

sectors, travel products must be sold for specific dates; otherwise, they expire and lose value. Therefore, an

effective marketing strategy and a well-diversified product portfolio are essential to maximize utilization and

minimize unsold inventory.

Third, travel products are easily replicable. This makes it difficult to maintain a competitive edge unless

companies continuously innovate and differentiate their offerings.

Lastly, the industry is highly sensitive to external factors. Compared to other sectors, travel is significantly more

vulnerable to political and diplomatic developments, social and economic disruptions, public health issues, and

other external variables.

4. New Business Development

Not Applicable.

Ⅳ. PARENT COMPANY, SUBSIDIARIES, AND BUSINESS COMBINATIONS

1. Overview of the Parent Company

Not applicable.

2. Overview of Subsidiaries

(Unit: Share, %)

Name of the Company

Primary Industry

No. of

Ownership Ratio

(%)

Hanatour Business Service Inc.

Travel Business

400,000

100.00

Hana Tourist Inc.

Travel Business

906,981

30.23

Hanatour Jeju Service Inc.

Travel Business

618,830

77.35

Hanatour ITC Service Inc.

Travel Business

20,400,000

100.00

Tour Marketing Korea Service Inc.

Travel Business

140,000

70.00

Web Tour Service Inc.

Travel Business

8,777,380

76.99

SM duty free Co., Ltd.

Duty Free Business

12,325,387

90.13

Hanatour Europe Ltd.

Travel Business

4,200

70.00

Hanatour Japan Co., Ltd.

Travel Business

6,836,300

53.98

Hanatour China

Travel Business

100.00

Hanatour Hongkong Co., Ltd.

Travel Business

30,850,000

100.00

Beijing Hana Information Technology Co., Ltd.

Software Technical

Development

100.00

Hanatour Vietnam Company Limited

Travel Business

85.00

Philippine Hanatour Inc.

Travel Business,

Visa issuance services

218,797

99.99

Hnt SG Pte. Ltd.

Travel Business

1,500,000

100.00

Hanatour Hawaii, Inc.

Travel Business

99,000

90.00

Hanatour Global Investment Pte. Ltd.

Investment business

5,000,000

100.00

Hanatour Services Nepal Pvt. Ltd.

Travel Business

1,000,000

100.00

Ⅴ. SUMMARY OF FINANCIAL DATA

* We’ve applied K-IFRS 1115 form 2018 and rewrote 2017 and 2016 Financial Results using K-IFRS 1115

1. Financial Results

(In thousand won, except per share amounts)

Account Title

33rd Term

32nd Term

31st Term

Sales

480,818,082

513,785,650

324,720,747

Operating Expenses

447,763,230

488,600,110

306,314,041

Operating Income

33,054,851

25,185,540

18,406,706

Profit Before Tax

22,717,654

58,903,835

31,237,113

Income Tax Expense

2,810,769

(1,189,703)

418,144

Net Income

19,906,886

60,093,538

30,818,969

Net Income per Share(Won)

1,287

3,880

1,990

2. Financial Position

(In thousand won)

Account Title

33rd Term

32nd Term

31st Term

Current Assets

358,970,287

383,952,854

367,002,425

Non-Current Assets

105,987,469

108,751,197

118,773,275

Total Assets

464,957,757

492,704,051

485,775,700

Current Liabilities

321,883,163

325,835,382

296,740,313

Long-term Liabilities

18,762,030

3,450,948

8,233,563

Total Liabilities

340,645,193

329,286,329

304,973,876

Capital Stock

8,019,593

Other Paid-in Capital

(9,932,745)

(20,526,418)

Elements of Other Shareholder’s Equity

(37,077)

(9,097)

Retained Earnings

126,262,792

175,961,624

193,317,746

Total Shareholder’s Equity

124,312,563

163,417,722

180,801,824

Total Liabilities

and Shareholder’s Equity

464,957,757

492,704,051

485,775,700

Ⅵ. RISK FACTORS

Refer to III - 1. Business Overview

Ⅶ. MANAGEMENT

Full-time

/Part-time

Name

Position

Assigned Task

Full-time

SangHwan Park

Chairman, Director

General Management

Full-time

HeeSeok Kweon

Senior Vice Chairman, Director

General Management

Full-time

MiSun Song

Chief Executive Officer and Director

General Management

Full-time

ChangHo Ryu

Executive Director, Director

General Management

Full-time

ChangHun Kim

Executive Director, Director

General Management

Part-time

HyeLeon Yoo

Audit Committee Member, Outside Director

Outside Director

Part-time

InWhan Chang

Audit Committee Member, Outside Director

Outside Director

Part-time

MoonHyun Kim

Audit Committee Member, Outside Director

Outside Director

Part-time

SangMan Han

Audit Committee Member, Outside Director

Outside Director

Part-time

InJun Song

Non-Executive Director

Part-time

YoungHo Kim

Non-Executive Director

Part-time

ChanWoo Park

Non-Executive Director

Ⅷ. LIST OF MAJOR SHAREHOLDERS

Shareholder

Number of shares

Ownership Ratio

Harmonia 1 limited company

and 6 people with a special relationship

4,456,981

28.77%

HANATOUR INC.

445,000

2.87%

Ⅸ. CURRENT STATUS OF INVESTMENTS

1. Domestic

Name of the Company

Equity Investor

No. of Shares

Ownership

Ratio (%)

Hanatour Business Service Inc.

HANATOUR Service Inc.

400,000

100.00

Hana Tourist Inc.

HANATOUR Service Inc.

906,981

30.23

Hanatour Jeju Service Inc.

HANATOUR Service Inc.

618,830

77.35

Hanatour ITC Service Inc.

HANATOUR Service Inc.

20,400,000

100.00

Tour Marketing Korea Service Inc.

HANATOUR Service Inc.

140,000

70.00

OK Tour Service Inc.

HANATOUR Service Inc.

9,784

48.92

Web Tour Service Inc.

HANATOUR Service Inc.

8,777,380

76.99

Nextour Co., Ltd.

Web Tour Service Inc.

40,000

100.00

Gyoyugyeohaeng Co., Ltd.

HANATOUR Service Inc.

398,000

19.90

SM duty free Co., Ltd.

HANATOUR Service Inc.

12,325,387

90.13

Nol Universe. Co., Ltd.

HANATOUR Service Inc.

60,876

0.07

Hani Tour Inc.

HANATOUR Service Inc.

19,078

9.54

SAM Consulting Co., Ltd.

HANATOUR Service Inc.

1,667

7.41

KBSJ Tourism Venture Union

HANATOUR Service Inc.

190

9.26

P&I Cultural Innovation Investment Union

HANATOUR Service Inc.

4.63

9.26

Jeju Channel Inc.

Hanatour Jeju Service Inc.

50,000

8.06

Mooncademy Inc.

HANATOUR Service Inc.

2,263

16.91

Dream Co., Ltd.

HANATOUR Service Inc.

2,250

2.08

Hanatour Jeju Service Inc.

2,250

2.08

2. Overseas

Name of the Company

Equity Investor

Region

No. of

Ownership

Ratio (%)

Hanatour Europe Ltd.

HANATOUR Service Inc.

London

4,200

70.00

Hanatour Japan Co., Ltd.

HANATOUR Service Inc.

Japan

6,836,300

53.98

U.I Sightseeing Bus LLC

Hanatour Japan Co., Ltd.

Japan

1,900

100.00

Hanatour China

HANATOUR Service Inc.

China

100.00

Hanatour HongKong Co., Ltd.

HANATOUR Service Inc.

Hong Kong

30,850,000

100.00

Allegrox TM Hotel

Hanatour Japan Co., Ltd.

Japan

396

100.00

Beijing Hana Information Technology Co.,

Ltd.

HANATOUR Service Inc.

China

100.00

Hanatour Janpan System Vietnam

Company Limited

Hanatour Japan Co., Ltd.

Vietnam

100.00

Hanatour Vietnam Company Limited

HANATOUR Service Inc.

Vietnam

85.00

Philippine Hanatour Inc.

HANATOUR Service Inc.

Philippines

218,797

99.99

Hnt SG Pte. Ltd.

HANATOUR Service Inc.

Singapore

1,500,000

100.00

HANATOUR HAWAII, INC.

HANATOUR Service Inc.

U.S.A.

99,000

90.00

Hanatour TD Co., Ltd.

HANATOUR Service Inc.

Thailand

49,000

49.00

Hanatour Europe S.R.L

HANATOUR Service Inc.

Italy

5,250

50.00

Kc Hospitality Co., Ltd

HANATOUR Service Inc.

Laos

57,600

10.00

Hanatour Global Investment Pte. Ltd.

HANATOUR Service Inc.

Singapore

50,000

100.00

Hanatour Services Nepal Pvt. Ltd.

HANATOUR Service Inc.

Nepal

1,000,000

100.00

Ⅹ. MAJOR CREDITORS

Not applicable.

XI. IMPORTANT EVENTS AFTER THE SETTLEMENT OF ACCOUNTS PERIOD

Not applicable.

XII. OTHER IMPORTANT FACTS ABOUT THE BUSINESS

Not applicable.

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of financial position

as of December 31, 2025 and 2024

			December 31,	December 31,
(In thousands of Korean won)	Notes		2025	2024
Assets
Cash and cash equivalents	4,30,38	W	81,675,283	105,683,073
Short-term financial instruments	30,34,38		196,723,042	163,204,938
Trade receivables	5,27,30,38		72,229,856	62,665,361
Other receivables	5,30,33,38		9,156,555	17,940,605
Finance lease receivables	6,30,38		785,218	929,084
Inventories	7		46,212,130	70,111,979
Advanced payments	8		46,154,163	47,069,900
Other current assets	8		4,697,920	4,341,179
Other financial assets	9,30,38		10,045,376	7,916,694
Current tax assets			563,686	511,797
Total current assets			468,243,229	480,374,610
Long-term other receivables	5,30,33,38		979,969	1,207,866
Long-term finance lease receivables	6,30,38		17,725	457,822
Other non-current assets	8		540,743	640,115
Other non-current financial assets	9,30,34,38		9,989,226	12,708,969
Investment property	10		742,271	758,323
Property, plant and equipment	11		12,035,443	12,353,721
Intangible assets	12		9,370,127	9,134,571
Right-of-use assets	13		91,047,765	90,562,868
Non-current financial assets at fair value through profit or loss (“FVPL”)	14,23,30		1,225,802	2,173,624
Financial assets at fair value through comprehensive income	15,23,30
(“FVOCI”)			1,139,862	1,139,628
Investments in associates and joint ventures	16,33		1,512,822	4,892
Deferred tax assets	31		60,686,623	57,272,495
Total non-current assets			189,288,378	188,414,894
Total assets		W	657,531,607	668,789,504

(continued)

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of financial position, Continued

as of December 31, 2025 and 2024

(In thousands of Korean won)	Notes		2025	2024
Liabilities
Trade payables	30,33,38	W	67,074,258	84,354,984
Other current payables	17,30,33,38		49,972,801	47,208,578
Income tax payables			2,024,480	912,440
Deposits received for travel			199,033,670	197,053,188
Advances received	27		16,836,728	15,775,960
Short-term borrowings	18,30,33,38		436,800	4,207,520
Current portion of long-term liabilities	18,30,38		630,412	1,810,441
Lease liabilities	19,30,38		17,116,311	16,722,447
Provisions	20,35		8,019,641	1,053,826
Other current liabilities	21,27		13,766,763	11,446,369
Other financial liabilities	21,30,38		2,566,798	2,567,352
Total current liabilities			377,478,662	383,113,105
Other non-current payables	17,30,38		1,027,744
Long-term employee benefit obligations	22		1,198,005	760,479
Long-term borrowings	18,30,38		1,403,368	3,745,133
Long-term lease liabilities	19,30,38		89,968,762	96,161,437
Long-term provisions	20,35		15,564,247	408,734
Other non-current liabilities	21		3,657,214	4,008,188
Other non-current financial liabilities	21,30,38		110,510	55,440
Total non-current liabilities			112,929,850	105,139,411
Total liabilities			490,408,512	488,252,516
Equity
Capital stock	1,24		8,019,593	8,019,593
Other contributed capital	24		3,517,368	(7,076,096)
Other components of equity	25		3,450,015	3,671,322
Retained earnings	26		132,553,859	170,263,388
Equity attributable to the owners of the Parent Company			147,540,835	174,878,207
Non-controlling interests			19,582,258	5,658,781
Total equity			167,123,093	180,536,988
Total liabilities and equity		W	657,531,605	668,789,504

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

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of comprehensive income

for each of the two years in the period ended December 31, 2025

(In thousands of Korean won, except earnings per share data)	Notes		2025	2024
Operating revenue	27,33,36	W	586,902,971	616,606,994
Operating expense 1	28,33,36		529,276,096	565,687,992
Operating income	36		57,626,876	50,919,002
Finance income	29,30		7,433,790	10,499,927
Finance expense	29,30		3,099,023	2,894,949
Gain (loss) from investments in associates and joint	29		(229,162)	(200,277)
ventures
Other income	29,33		19,906,428	18,794,381
Other expense 2	29,33		33,359,509	7,865,360
Income before income tax expenses			48,279,399	69,252,724
Income tax expense for continuing operations	31		345,805	422,890
Income		W	48,091,673	99,079,353
Income from continuing operations			47,933,594	68,829,834
Gain from discontinued operations	39		158,079	30,249,519
Other comprehensive income(loss)			(621,292)	571,645
after income tax expense
Items that will never be reclassified to profit of loss:			150	(50,020)
Gain (loss) on valuation of financial assets at FVOCI			150	(50,020)
Items that are or may be reclassified subsequently
to profit of loss:			(621,442)	621,664
Gain on translation of foreign operations, net			(614,184)	623,516
Share of other comprehensive income of associates			(7,258)	(1,851)
Total comprehensive income		W	47,470,381	99,650,998
Net income attributable to:
Owners of the Parent Company			31,896,188	81,459,801
Non-controlling interests			16,195,485	17,619,552
		W	48,091,673	99,079,353
Comprehensive income attributable to:
Owners of the Parent Company			31,674,881	81,882,908
Non-controlling interests			15,795,500	17,768,090
		W	47,470,381	99,650,998
Earnings per share	32
Basic earnings per share attributable to:			2,062	5,259
Continuing operations (in Korean won)			2,053	3,499
Discontinued operations (in Korean won)			9	1,760
Diluted earnings per share attributable to:		W	2,062	5,259
Continuing operations (in Korean won)			2,053	3,499
Discontinued operations (in Korean won)			9	1,760

1) Operating expense includes a reversal of expected credit losses (ECLs) of 2,459,96 9 thousand (2024: 3,653,882 thousand).

Further detail can be found in note 37.

2) Other expense includes a net charge of expected credit losses (ECLs) of 1,664,679 thousand (2024: ECL of 2,053,267 thousand).

Further detail can be found in note 37.

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

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of changes in equity

for each of the two years in the period ended December 31, 2025

	Capital	Other	Other	Retained	Non-controlling	Total
	Stock	contributed	components of	earnings	interests	shareholders’
(In thousands of Korean won)		capital	equity	(deficit)		equity
As of January 1, 2024	W 8,019,593	(7,085,791)	2,624,819	166,799,642	(11,054,183)	159,304,079
Net income	-	-	-	81,459,801	17,619,552	99,079,353
Gain on translation of foreign	-	-	471,185	-	152,331	623,516
operations
Share of other comprehensive income of associates	-	-	(1,851)	-	-	(1,851)
Loss on valuation of financial	-	-	(46,227)	-	(3,793)	(50,020)
assets at FVOCI
Dividends	-	-	-	(77,449,660)	(1,211,645)	(78,661,305)
Exercise of stock options	-	10,047	-	-	6,302	16,349
Acquisition of treasury shares by subsidiaries	-	(352)	-	-	(294)	(646)
Adjustments	-	-	546,395	(546,395)	-	-
Changes in scope of consolidation	-	-	77,000	-	150,513	227,513
As of December 31, 2024	W 8,019,593	(7,076,096)	3,671,321	170,263,388	5,658,782	180,536,988
As of January 1, 2025	W 8,019,593	(7,076,096)	3,671,322	170,263,388	5,658,782	180,536,988
Net income	-	-	-	31,896,188	16,195,485	48,091,673
Gain(Loss) on translation of foreign operations	-	-	(214,165)	-	(400,019)	(614,184)
Share of other comprehensive income of associates			(7,258)			(7,258)
Gain on valuation of financial	-	-	116	-	34	150
assets at FVOCI
Dividends	-	-	-	(35,626,844)	(1,871,861)	(37,498,705)
Cancellation of treasury shares		33,978,873		(33,978,873)
Acquisition of treasury shares by the parent company		(23,385,200)				(23,385,200)
Acquisition of treasury shares by subsidiaries	-	(208)			(162)	(371)
As of December 31, 2025	W 8,019,593	3,517,368	3,450,015	132,553,859	19,582,258	167,123,093

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

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of cash flows

for each of the two years in the period ended December 31, 2025

(In thousands of won)	Note		2025	2024
Cash flows from operating activities
Net income		W	48,091,673	99,079,353
Adjustments for non-cash revenue and expenses	37		40,586,579	(7,363,331)
Movements in operating assets and liabilities:	37
Increase in trade receivables			(8,390,946)	(6,138,104)
Decrease (increase) in other receivables			9,715,622	(331,759)
Decrease (increase) in inventories			24,466,864	(11,410,331)
Decrease (increase) in advanced payments			887,957	(10,111,614)
Increase in other assets			(293,363)	(1,823,589)
Increase in deposits received for travel			2,042,447	33,238,632
Increase (decrease) in trade payables			(16,647,273)	1,707,846
Decrease in other payables			(205,010)	(5,740,884)
Increase (decrease) in other financial liabilities			(13,920)	7,030
Decrease in provisions			(1,095,818)	(1,691,868)
Decrease in other liabilities			(1,408,417)	(2,196,541)
Increase (decrease) in advances received			1,102,913	(1,976,425)
Decrease in long-term employee benefit obligations			(135,746)	(115,500)
			98,703,562	85,132,915
Interest income received			7,125,520	7,021,908
Interest expense paid			(2,171,380)	(2,686,542)
Dividends received			181,981	758,731
Income taxes paid			(2,753,525)	(2,214,198)
Net cash flows provided by operating activities		W	101,086,158	88,012,814

(continued)

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of cash flows, Continued

for each of the two years in the period ended December 31, 2025

(In thousands of won)	Note	2025	2024
Cash flows from investing activities
Cash inflows from investing activities:
Decrease in short-term financial instruments	W	202,650,683	175,065,200
Decrease in other receivables		494,038	515,570
Disposal of financial assets at FVPL		198,470	2,552,000
Disposal of financial assets at FVOCI		-	5,911
Disposal of financial assets at amortized cost		93,333	-
Disposal of property, plant and equipment		568,270	105,264
Disposal of intangible assets		6,048	174,810
Decrease in finance lease receivables		1,612,589	1,553,024
Decrease in other financial assets		6,131,776	28,526,224
Government grants		-	82,824
Cash outflows for investing activities:
Increase in short-term financial instruments		236,331,612	192,493,784
Increase in other receivables		2,233,900	423,881
Acquisition of financial assets at FVOCI		95	90
Acquisition of investments in associates and joint venture		1,633,762	72,363
Acquisition of property, plant and equipment		3,175,669	3,571,115
Acquisition of intangible assets		1,989,489	1,924,639
Increase in other financial assets		5,603,568	9,522,747
Net cash flows provided by (used in) investing activities	W	(39,212,888)	572,208

(continued)

HANATOUR SERVICE INC. AND ITS SUBSIDIARIES

Consolidated statements of cash flows, Continued

for each of the two years in the period ended December 31, 2025

(In thousands of won)	Note	2025	2024
Cash flows from financing activities
Cash inflows from financing activities:
Proceeds from short-term borrowings	W	3,803,160	12,805,883
Paid-in capital increase of subsidiaries		-	150,513
Exercise of stock options		-	16,549
Increase in leasehold deposits received		274,000	294,883
Cash outflows for financing activities:
Repayment of short-term borrowings		7,606,320	17,369,042
Repayment of current portion of long-term borrowings		2,894,357	1,703,517
Repayment of long-term bonds		638,836	-
Repayment of lease liabilities		19,170,666	18,647,571
Payment of dividends		37,460,262	78,661,368
Payment of leasehold deposits received		157,480	200,000
Acquisition of treasury shares of subsidiaries		21,822,229	650
Net cash flows used in financing activities		(85,672,990)	(103,314,320)
Net increase (decrease) in cash and cash equivalents		(23,799,720)	(14,729,298)
Cash and cash equivalents at the beginning of the year		105,683,073	118,664,728
Effect of exchange rate change		(208,070)	1,747,643
Cash and cash equivalents at the end of the year	W	81,675,283	105,683,073

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

Notes to the consolidated financial statements

December 31, 2025 and 2024

HANATOUR Service Inc. and its subsidiaries

1. General Information:

(1)

The Parent Company

HANATOUR Service Inc. (the “Parent Company”) was established on November 1, 1993. The Parent Company is primarily engaged in

operating travel agency activities, and its shares were listed on the KRX KOSDAQ market on November 24, 2000. They were listed on the

London Stock Exchange on November 7, 2006, in the form of global depositary receipts (“GDRs”). As of November 1, 2011, the Parent

Company transferred its listing from the KRX KOSDAQ market to the stock market opened by the Korea Exchange.

The Parent Company is domiciled at Insadong 5-gil, Jongno-gu, Seoul, Korea. As of December 31, 2025, the total paid-in capital is 8,020

million won. Harmonia 1, Inc. owns about 17.3% of the paid-in capital, major executives and employees own about 11.6%, while treasury

stock is about 3.1% (* HANATOUR Service Inc. and its subsidiaries are collectively referred to as the “Group”).

(2)

Consolidated subsidiaries

The Group’s consolidated subsidiaries as of December 31, 2025 and 2024 are as follows:

The Parent

Company

Subsidiaries

Major business

Location

Controlling interest (%)

Closing

date

Dec. 31, 2025

Dec. 31, 2024

HANATOUR

Service Inc.

Web Tour Service Inc.

Travel agency

Korea

76.99

Dec. 31

Hanatour Business Service Inc.

Travel agency

Korea

100.00

Dec. 31

Hana Tourist Inc. (*1)

Travel agency

Korea

30.23

Dec. 31

HANATOURJEJU Co., Ltd.

Travel agency

Korea

77.35

Dec. 31

Hanatour ITC Service Inc.

Travel agency

Korea

100.00

Dec. 31

Tour Marketing Korea Service Inc.

Travel agency

Korea

70.00

Dec. 31

SM duty free Co., Ltd. (*2)

Duty-free shop

Korea

90.13

Dec. 31

HANATOURLOAN Co., Ltd. (*3)

Loan business

Korea

100.00

Dec. 31

HANATOUR EUROPE LTD.

Travel agency

70.00

Dec. 31

HANATOUR JAPAN CO., LTD.

Travel agency

Japan

53.98

Dec. 31

HANATOUR CHINA

Travel agency

China

100.00

Dec. 31

HANATOUR HONGKONG CO., LTD.

Travel agency

Hong Kong

100.00

Dec. 31

BEIJING HANA INFORMATION

TECHNOLOGY CO., LTD.

Software development

China

100.00

Dec. 31

HANATOUR VIETNAM COMPANY LIMITED

Travel agency

Vietnam

85.00

Dec. 31

PHILIPPINE HANATOUR INC.

Travel agency

Philippines

99.99

Dec. 31

HNT SG PTE. LTD.

Travel agency

Singapore

100.00

Dec. 31

HANATOUR HAWAII, INC.

Travel agency

USA

90.00

Dec. 31

HANATOUR GLOBAL

INVESTMENT PTE. LTD.(*4)

Investment

Singapore

100.00

Dec.31

HANATOUR SERVICES NEPAL PVT. LTD.(*4)

Travel agency

Nepal

100.00

Dec. 31

Web Tour

Service Inc.

NEXTOUR CO., LTD.

Travel agency

Korea

76.99

Dec. 31

HANA TOUR

JAPAN CO., LTD

U.I Sightseeing Bus LLC

Transportation

Japan

53.98

Dec. 31

Allegrox TM Hotel

Entrusted operation of

accommodation

Japan

53.98

Dec. 31

HANATOUR JAPAN SYSTEM VIETNAM

COMPANY LIMITED

Development and

maintenance of

software

Vietnam

53.98

Dec. 31

(*1) Although the Group owns less than half of the voting rights of Hana Tourist Inc., the Group has concluded it is deemed to have substantial control over

Hana Tourist Inc. and accordingly classified the entity as a subsidiary.

(*2) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

(*3) It was liquidated during the year ended December 31, 2025.

(*4) It was newly established during the year ended December 31, 2025.

(3)

The condensed financial information on the Group’s major subsidiaries as of and for the year ended December 31, 2025 is as follows:

Name of the company

(In thousands of Korean won)

Assets

Liabilities

Sales

Profit for the year

Total comprehensive

income for the year,

net of tax

Web Tour Service Inc.

27,323,230

10,344,388

15,775,234

343,091

Hanatour Business Service Inc.

15,114,179

8,854,782

12,232,869

1,699,008

HANATOUR JAPAN CO., LTD.

47,874,714

16,658,058

17,094,115

13,879,027

13,159,893

U.I Sightseeing Bus LLC

21,594,021

7,268,680

19,895,186

3,427,222

3,081,368

Allegrox TM Hotel

87,826,080

106,832,393

32,424,136

15,289,723

15,450,032

1. General Information (cont’d):

(4)

Changes to subsidiaries

Subsidiaries newly included in or excluded from the scope of consolidation for each of the two years in the period ended December 31, 2025

are as follows:

Reason	2025	2024
Inclusion due to the incorporation	HANATOUR GLOBAL INVESTMENT PTE. LTD.	HANATOUR HAWAII, INC.
of new entity	HANATOUR SERVICES NEPAL PVT. LTD.
Exclusion due to liquidation	HANATOURLOAN Co., Ltd.	HANA TOUR SERVICE (M) SDN.BHD

(5)

The condensed consolidated statements of financial position of subsidiaries with material non-controlling interests as of December 31,

2025 and 2024 are as follows (before the elimination of intercompany transactions):

			December 31, 2025
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)			LLC		(*)
		JAPAN CO., LTD.
Current assets	23,342,643	35,699,476	12,358,132	7,127,856	121,341
Non-current assets	3,980,587	12,175,238	9,235,889	80,698,224	-
Total assets	27,323,230	47,874,714	21,594,021	87,826,080	121,341
Current liabilities	10,258,233	15,314,863	6,498,886	12,791,480	14,039,744
Non-current liabilities	86,155	1,343,195	769,794	94,040,913	-
Total liabilities	10,344,388	16,658,058	7,268,680	106,832,393	14,039,744
Controlling interests	13,072,366	16,997,087	7,785,919	(10,354,252)	(12,544,437)
Non-controlling interests	3,906,476	14,219,569	6,539,422	(8,652,061)	(1,373,966)
Total equity	16,978,842	31,216,656	14,325,341	(19,006,313)	(13,918,403)

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

			December 31, 2024
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)		JAPAN CO., LTD.	LLC		(*)
Current assets	23,059,192	34,047,859	10,425,284	6,212,769	201,361
Non-current assets	5,562,203	9,621,635	8,392,464	79,961,658	-
Total assets	28,621,395	43,669,494	18,817,748	86,174,427	201,361
Current liabilities	11,086,279	17,256,429	5,034,852	14,231,154	14,440,079
Non-current liabilities	397,751	4,697,535	2,538,923	106,399,617	-
Total liabilities	11,484,030	21,953,964	7,573,775	120,630,771	14,440,079
Controlling interests	13,194,416	11,823,811	6,110,489	(18,766,558)	(12,833,132)
Non-controlling interests	3,942,949	9,891,719	5,133,484	(15,689,786)	(1,405,586)
Total equity	17,137,365	21,715,530	11,243,973	(34,456,344)	(14,238,718)

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

The condensed financial position above and the share of non-controlling interests reflect the goodwill recognized on the business combination,

fair value adjustments, and adjustments arising from differences in accounting policies with the Parent Company, but before the elimination

of intercompany transactions.

(6)

The condensed consolidated statements of comprehensive income of subsidiaries with material non-controlling interests for each of

the two years in the period ended December 31, 2025 and 2024 are as follows (before the elimination of intercompany transactions):

			2025
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)		JAPAN CO., LTD.	LLC		(*)
Sales	15,775,234	17,094,115	19,895,186	32,424,136	-
Operating profit (loss)	(186,049)	7,171,095	4,510,824	8,345,961	(37,898)
Profit for the year	343,091	13,879,027	3,427,222	15,289,723	320,316
Other comprehensive income	-	(719,134)	(345,854)	160,309	-
(loss)
Total comprehensive income	343,091	13,159,893	3,081,368	15,450,032	320,316
Profit for the year attributable to non-controlling interests	78,938	6,322,067	1,561,142	6,964,656	31,620
Total comprehensive income
attributable to non-controlling interests	78,938	5,994,493	1,403,601	7,037,679	31,620

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

1. General Information (cont’d):

			2024
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)		JAPAN CO., LTD.	LLC		(*)
Sales	20,661,776	16,864,268	18,357,457	26,527,762	-
Operating profit (loss)	520,325	7,597,369	3,906,784	6,040,546	(5,995)
Profit for the year	1,067,155	12,156,839	2,540,763	11,349,984	33,515,931
Other comprehensive income (loss), net of tax	-	718,839	320,708	(721,365)	-
Total comprehensive income, net of tax	1,067,155	12,875,678	2,861,471	10,628,619	33,515,931
Profit for the year attributable to non-controlling interests	245,530	5,537,605	1,157,352	5,170,072	3,308,549
Total comprehensive income
attributable to non-controlling interests	245,530	5,865,047	1,303,439	4,841,480	3,308,549

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

The condensed financial performance and the share of non-controlling interests reflect the goodwill recognized on the business combination,

fair value adjustments, and adjustments arising from differences in accounting policies with the Parent Company, but before the elimination of

intercompany transactions.

(7)

The condensed consolidated statements of cash flows of subsidiaries with material non-controlling interests for each of the two years

in the period ended December 31, 2025 and 2024 are as follows (before the elimination of intercompany transactions):

			2025
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)		JAPAN CO., LTD.	LLC		(*)
Cash flows from operating activities	(1,264,741)	5,414,368	5,966,246	12,468,217	(77,785)
Cash flows from investing activities	798,636	1,797,267	(857,063)	(118,735)	-
Cash flows from financing activities	(860,881)	(9,115,296)	(3,133,511)	(11,722,867)	-
Net increase (decrease) in cash and cash equivalents	(1,326,986)	(1,903,661)	1,975,672	626,615	(77,785)
Cash and cash equivalents at the beginning of the year	2,181,512	12,272,755	4,051,451	3,658,876	197,900
Effects of exchange rate changes on cash and cash equivalents	(5,802)	(7,977)	(150,453)	(95,502)	(97)
Cash and cash equivalents at the end	848,724	10,361,117	5,876,670	4,189,989	120,018
of the year

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

			2024
Description	Web Tour Service Inc.	HANATOUR	U.I Sightseeing Bus	Allegrox TM Hotel	SM duty free Co., Ltd.
(in thousands of Korean won)		JAPAN CO., LTD.	LLC		(*)
Cash flows from operating activities	2,906,930	6,732,437	5,571,434	9,267,161	188,346
Cash flows from investing activities	865,775	2,450,786	(1,572,821)	(305,196)	-
Cash flows from financing activities	(2,387,235)	(4,914,216)	(3,185,561)	(8,983,304)	-
Net increase (decrease) in cash and cash equivalents	1,385,470	4,269,007	813,052	(21,339)	188,346
Cash and cash equivalents at the beginning of the year	796,074	7,609,143	3,124,240	3,587,441	9,060
Effects of exchange rate changes on cash and cash equivalents	(32)	394,605	114,159	92,774	494
Cash and cash equivalents at the end	2,181,512	12,272,755	4,051,451	3,658,876	197,900
of the year

(*) On January 15, 2026, the Seoul Bankruptcy Court declared bankruptcy and appointed a bankruptcy trustee.

The condensed cash flows above are the amounts after reflecting the goodwill recognized on the business combination, fair value adjustments,

and adjustments arising from differences in accounting policies with the Parent Company, but before the elimination of intercompany

transactions.

2. Summary of material accounting policies:

(1)

Basis of preparation of consolidated financial statements

The parent entity and its subsidiaries (the “Group”) have prepared the consolidated financial statements in accordance with Korean

International Financial Reporting Standards (“K-IFRS”) and IFRS© Accounting Standards (“IFRS Accounting Standards”). The

accompanying consolidated financial statements have been translated into English from Korean financial statements. In the event of any

differences in interpreting the financial statements or the independent auditor’s report thereon, the Korean version, which is used for

regulatory reporting purposes, shall prevail.

The principal accounting policies used to prepare the consolidated financial statements as of and for the year ended December 31, 2025 are

consistent with the accounting policies used to prepare the consolidated financial statements as of and for the year ended December 31, 2024

except for the effect of the Amendments to K-IFRSs and new interpretations set out below.

The Group has, at the time of approving the financial statements, a reasonable expectation that they have adequate resources to continue in

operational existence for the foreseeable future. Thus the Group continues to adopt the going concern basis of accounting in preparing the

financial statements.

The amendments have no material impacts on the Group’s consolidated financial statements.

① New and amended standards and interpretations

Amendments to KIFRS 1021 - The Effects of Changes in Foreign Exchange Rates and

KIFRS 1101 - First-time Adoption of Korean International Financial Reporting Standards (Amended) – Lack of Exchangeability

The amendments define the circumstances in which a currency is considered exchangeable with another currency for accounting purposes,

and clarify the requirements for assessing exchangeability, estimating the spot exchange rate when exchangeability is lacking, and related

disclosures. When a currency is not exchangeable with another currency, estimating the spot exchange rate at the measurement date is

required, either by using an observable exchange rate without adjustment or by applying an alternative estimation technique.

The amendments have no material impacts on the Group’s consolidated financial statements.

② Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective for annual reporting periods beginning on or after

January 1, 2025 are disclosed below.

Amendments to KIFRS 1109 Financial Instruments and KIFRS 1107 Financial Instruments: Disclosure – Classification and

Measurement of Financial Instruments

The amendments clarify the conditions regarding the derecognition of financial liabilities settled through electronic payment systems prior to

the settlement date. They provide guidance on assessing whether contractual cash flows are consistent with a basic lending arrangement,

addressing the characteristics of interest, contingent events, non-recourse features, and contractually linked financial instruments. Additionally,

these amendments incorporate enhanced disclosure requirements for investments in equity instruments designated at fair value through other

comprehensive income (FVOCI) and contractual terms that may alter the timing or amount of contractual cash flows. These amendments are

to be applied retrospectively for annual reporting periods beginning on or after January 1, 2026, with early application permitted.

Amendments to KIFRS 1109 Financial Instruments – Derecognition of Lease Liabilities and Definition of Transaction Price

The amendments clarify that any gain or loss arising from the derecognition of lease liabilities shall be recognized in profit or loss. Furthermore,

the definition of transaction price has been amended to ensure consistency with KIFRS 1115. These amendments are effective for annual

reporting periods beginning on or after January 1, 2026, with early application permitted.

Amendments to KIFRS 1101 'First-time Adoption of International Financial Reporting Standards' – Hedge Accounting

The amendments clarify the application requirements for hedge accounting to refer to specific paragraphs in IFRS 9 'Financial Instruments'

and aligned the related terminology. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with

early application permitted.

2. Summary of material accounting policies

(cont’d)

Amendments to KIFRS 1107 'Financial Instruments: Disclosures' – Gain or Loss on Derecognition

The amendments clarify that KIFRS 1113 'Fair Value' shall be referenced for fair value measurements and have aligned the related terminology.

These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with early application permitted.

Amendments to KIFRS 1007 'Statement of Cash Flows' – Cost Method

The amendments replace the term 'cost method' with 'at cost'. These amendments are effective for annual reporting periods beginning on or

after January 1, 2026, with early application permitted.

The Group is currently reviewing the potential impact of these amendments on its consolidated financial statements.

KIFRS 1118 ‘Presentation and Disclosures in Financial Statements’

KIFRS 1118 replaces KIFRS 1001, carrying forward many of the requirements in KIFRS 1001 unchanged and complementing them with new

requirements. In addition, some paragraphs from KIFRS 1001 have been moved to KIFRS 1008 and KIFRS 1107. Furthermore, minor

amendments have been made to KIFRS 1007 and KIFRS 1033.

KIFRS 1118 introduces new requirements to:

- present specified categories and defined subtotals in the statement of profit or loss

- provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements

- improve aggregation and disaggregation.

An entity is required to apply KIFRS 1118 for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted.

The amendments to KIFRS 1007 and KIFRS 1033, as well as the revised KIFRS 1008 and KIFRS 1107, become effective when an entity

applies KIFRS 1118. KIFRS 1118 requires retrospective application with specific transition provisions.

The Group is currently reviewing the impact that the above amendments and enactments may have on the consolidated financial statements.

③ The consolidated financial statements of the Group for the year ended December 31, 2025 are finally scheduled to be approved at the

regular shareholders’ meeting dated March 27, 2026.

(2)

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Parent Company and entities (including stru ctured entities)

controlled by the Parent Company (or its subsidiaries). Control is achieved when the Parent Company:

1) has power over the investee; and

2) is exposed, or has rights, to variable returns from its involvement with the investee; and

3) has the ability to use its power to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of

the three elements of control listed above.

Even if the Group has less than a majority of the voting rights of an investee, it has power over the investee when the votin g rights are

sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts

and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including:

- the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of other vote holders;

- potential voting rights held by the Group, other vote holders or other parties;

- any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities

at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive

income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

2. Summary of material accounting policies

(cont’d)

The carrying amount of non-controlling interests is the amount initially recognized, adjusted for the non-controlling interests' proportionate

share of subsequent changes in equity since the acquisition date. Total comprehensive income is attributed to non-controlling interests

even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those

used by the Group. If an entity of the Group uses accounting standards other than those adopted in the consolidated financial statements

for like transactions and events in similar circumstances, appropriate adjustments are made to the entity’s financial statements in preparing

the consolidated financial statements.

Intragroup transactions and the related assets, liabilities, income and expenses are eliminated in full on consolidation.

Non-controlling interests are recognized separately from the equity of the owners of the Group. On the acquisition date, the non-controlling

interest that represents the current ownership stake in the acquiree and entitles its holders to a proportionate share of the entity's net assets

in the event of liquidation can be measured using one of the two methods: 1) at fair value, or 2) at the proportionate share of the acquiree's

identifiable net assets recognized.

The choice of measurement basis is made on a transaction-by-transaction basis. All other components of non-controlling interests are

measured at fair value at the acquisition date. The carrying amount of non-controlling interests consists of the amount of those non-

controlling interests at the initial recognition and the changes in shares of the non-controlling interests in equity since the date of the

acquisition. Total comprehensive income shall be attributed to the non-controlling interests even if this results in the non-controlling

interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries, without a loss of control, are accounted for as equity transactio ns.

The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests

in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the

consideration paid or received is recognized directly in equity and attributed to the owners of the Group.

When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the

fair value of the consideration received and the fair value of any retained interest and (ii) the carrying amount of the assets (including

goodwill), liabilities of the subsidiary and any non-controlling interests. The amounts previously recognized in other comprehensive

income are accounted for as if the Group had directly disposed of the relevant assets (i.e., reclassified to profit or loss or transferred

directly to retained earnings). On the date control is lost, the fair value of any investment retained in the former subsidia ry is regarded as

the fair value on initial recognition of a financial asset in accordance with KIFRS 1109 Financial Instruments, or, when appropriate, as

the cost on initial recognition of an investment in an associate or a joint venture.

(3)

Business combination

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in a business

combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the

Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for

control of the acquiree. Acquisition-related costs are recognized as profit or loss in the period incurred.

On the acquisition date, identifiable acquired assets, assumed liabilities, and contingent liabilities are recognized at fair value, with the

following exceptions:

- Deferred tax assets or liabilities and assets or liabilities related to employee benefit obligations are recognized and measu red in

accordance with KIFRS 1012 Income Tax and KIFRS 1019 Employee Benefits, respectively.

- Liabilities or equity instruments that arise from the acquirer's replacement of the acquiree's share-based payment with its own are

measured in accordance with KIFRS 1102 Share-based Payment.

- Non-current assets (or disposal groups) classified as held for sale, in accordance with KIFRS 1105 Non-current Assets Held for Sale and

Discontinued Operations, are measured according to KIFRS 1105.

Goodwill is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest in the

acquiree and the acquisition-date fair value of the Group’s previously held equity interest in the acquiree over the net of the acquisition-

date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts

of the identifiable assets acquired and the liabilities assumed exceeds the aggregate of the consideration transferred, the a mount of any

non-controlling interest in the acquiree, and the acquisition-date fair value of the Group’s previously held equity interest in the acquiree,

the excess is recognized immediately in profit or loss as a bargain purchase gain.

2. Summary of material accounting policies

(cont’d)

Goodwill is not amortized but tested for impairment at least annually. For purposes of impairment tests, goodwill is allocated to those cash-

generating units (“CGU”) of the Group expected to have synergies from the business combination. The CGU to which goodwill has been

allocated is tested for impairment every year or when an event occurs that indicates impairment.

If the recoverable amount of a CGU is less than its carrying amount, the impairment will first decrease the carrying amount of goodwill

allocated to that CGU and the remaining impairment will be allocated to the other assets of the CGU on a pro rata basis based on their

carrying amounts. Impairment recognized for goodwill may not be reversed. When disposing of a subsidiary, related goodwill will be

included in the gain or loss from disposal.

On the acquisition date, the non-controlling interest that represents the current ownership stake in the acquiree and entitles its holders to

a proportionate share of the entity's net assets in the event of liquidation can be measured using one of the two methods: 1) at fair value,

or 2) at the proportionate share of the acquiree's identifiable net assets recognized. The choice of measurement basis is mad e on a

transaction-by-transaction basis. All other components of non-controlling interests are measured at fair value on the acquisition date unless

otherwise required by KIFRS.

The consideration transferred by the acquiring entity in a business combination includes assets and liabilities arising from contingent

consideration arrangements, and such contingent consideration is measured at fair value at the acquisition date and incl uded as part of the

consideration. Subsequent changes in fair value are retrospectively adjusted against goodwill if they meet the conditions of the

measurement period adjustments. Measurement period adjustments refer to adjustments that arise from obtaining additional information

about facts and circumstances that existed at the acquisition date during the 'measurement period' (which cannot exceed one y ear from the

acquisition date).

Changes in the fair value of contingent consideration that do not meet the conditions for measurement period adjustments are accounted

for according to the classification of the contingent consideration. Contingent consideration classified as equity is not remeasured at

subsequent reporting dates and is accounted for within equity upon settlement. Other contingent considerations are remeasured to fair

value at subsequent reporting dates, and the fair value changes are recognized in profit or loss.

When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured at its fair

value at the acquisition date and the resulting gain or loss, if any, is recognized in profit or loss (or other comprehensive income, as

appropriate). Prior to the acquisition date, the amount resulting from changes in the value of its equity interest in the acquiree that ha s

previously been recognized in other comprehensive income is reclassified to profit or loss where s uch treatment would be appropriate if

that interest were directly disposed of.

(4)

Non-current assets held for sale and discontinued operations

Non-current assets held for sale

The Group classifies a non-current asset (or disposal group) as held for sale, if its carrying amount will be recovered principally through a

sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale

in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be

highly probable. Management must be committed to a plan to sell the asset (or disposal group), and the sale should be expected to satisfy sale

completion requirements within one year from the date of classification.

When the Group commits to a plan to sell all or part of the investment in an associate or joint venture, all or part of the investment in the

associate or joint venture is classified as held for sale if the above requirements are met. The Group ceases to apply the equity method to its

investment in the associate or joint venture in respect of the part classified as held for sale. Meanwhile, the equity method continues to be

applied to the remaining interests in associates or joint ventures that are not classified as held for sale, but if the Group loses significant

influence over the associates or joint ventures as a result of a sale, the equity method is discontinued at the date of the sale.

Non-current assets (or disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value, less costs

to sell. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale. Assets and

liabilities classified as held for sale are presented separately as current items in the consolidated statement of financial position.

Discontinued operation

A disposal group is a discontinued business if it meets any of the following conditions:

- it represents a separate major line of business or geographical area of operations;

- it is part of a single plan to dispose of a separate major line of business or geographical area of operations; or

- it is a subsidiary acquired exclusively with a view to resale.

2. Summary of material accounting policies

(cont’d)

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax

from discontinued operations in the statement of other comprehensive income. Additional information related to discontinued operations are

disclosed in Note 39.

(5)

Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate i n the financial

and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement, whereby the parties that have joint control of the arrangement have rights to the net assets of the joint

arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the

relevant activities require unanimous consent of the parties sharing control.

Except when an investment in an associate or a joint venture is classified as held for sale in accordance with KIFRS 1105 Non-current

Assets Held for Sale and Discontinued Operations, the profit or loss, assets and liabilities of associates and joint ventures are included in

the consolidated financial statements using the equity method. Under the equity method, an investment in an associate or a joint venture

is initially recognized in the consolidated statement of financial position at acquisition cost and adjusted for the Group’s share of changes

in the net assets of the associates and joint ventures arising after acquisition, less any impairment losses recognized on th e respective

investments. Losses of an associate or a joint venture in excess of the Group’s interest in the associate or joint venture (including any

long-term interests that substantially form part of the Group’s net investment in the associate or joint venture) are recognized only to the

extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint ven ture.

Investments in the associate or joint venture are accounted for using the equity method from the date when the investee becom es the

associate or joint venture. Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets,

liabilities and contingent liabilities of an associate or a joint venture recognized at the date of acquisition is recognized as goodwill, which

is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets,

liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

The requirements of KIFRS 1028 Investments in Associates and Joint Ventures are applied to determine whether it is necessary to recognize

any impairment loss with respect to the Group’s investment in an associate or a joint venture. When there is any indication of impairment,

the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with KIFRS 1036 Impairment of

Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying

amount. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the carrying amount of the

investment. Any reversal of that impairment loss is recognized in accordance with KIFRS 1036 to the extent that the recoverab le amount

of the investment subsequently increases.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture . Upon

disposal of an associate or a joint venture that results in the Group losing significant influence over that associate or joi nt venture, any

retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial

asset in accordance with KIFRS 1109. The difference between the previous carrying amount of the associate or joint venture at tributable

to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate or joint venture.

In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate or joint

venture on the same basis it would be required if that associate or joint venture had directly disposed of the related assets or liabilities.

Therefore, if a gain or loss previously recognized in other comprehensive income by that associate or joint venture would be reclassified

to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity t o profit or loss (as

reclassification adjustment) when it loses significant influence over that associate or joint venture.

When the Group reduces its ownership interest in an associate or a joint venture, but the Group continues to use the equity m ethod, the

Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income

relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets

or liabilities. In addition, the Group applies KIFRS 1105 to a portion of investment in an associate or a joint venture that meets the criter ia

to be classified as held for sale.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment

in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the

associate or joint venture are recognized in the group’s consolidated financial statements only to the extent of interests in the associate or

joint venture that are not related to the Group.

2. Summary of material accounting policies

(cont’d)

(6)

Cash and cash equivalents

Cash and cash equivalents include cash, currency equivalents including checks issued by others, checking accounts, ordinary deposits and financial

instruments, which can be easily converted into cash and whose value changes due to changes in interest rates are not material, with maturities (or

date of redemption) of three months or less upon acquisition.

(7)

Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade-date basis. Regular way purchases or

sales are purchases or sales of financial assets that require delivery of assets within the time frame established by reg ulation or convention

in the marketplace.

All recognized financial assets are subsequently measured at amortized cost or fair value, depending on the classification of the financial

asset.

1) Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at amortized cost:

- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on

the principal amount outstanding.

Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive incom e

(“FVOCI”):

- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the

financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on

the principal amount outstanding.

By default, all other financial assets are measured subsequently at fair value through profit or loss (“FVPL”). Despite the foregoing, the

Group may make the following irrevocable election or designation at initial recognition of a financial asset:

- the Group may irrevocably elect to present subsequent changes in the fair value of an equity investment in other comprehensive income

if certain criteria are met (refer to C. below); and

- the Group may irrevocably designate a debt investment that meets the criteria to be classified as those measured at amortized cost or at

FVOCI as to be measured at FVPL if doing so eliminates or significantly reduces an accounting mismatch (refer to D. below).

A. Amortized cost and effective interest rate method

The effective interest rate method is used to calculate the amortized cost of a debt instrument and allocate interest income over the relevant

period. Except for financial assets that are credit-impaired at acquisition, the effective interest rate is the rate that exactly discounts the

expected future cash receipts – excluding expected credit losses but including fees and points that are an integral part of the effective

interest rate, transaction costs, and other premiums or discounts – over the expected life of the financial asset or, when appropriate, a

shorter period, to the gross carrying amount of the financial asset at initial recognition. For financial assets that are credit-impaired at

acquisition, the credit-adjusted effective interest rate is calculated by discounting the expected cash flows, which incorporate expected

credit losses, to the amortized cost on initial recognition.

The amortized cost of a financial asset is calculated as the initial recognition amount, minus principal repayments, plus or minus the

cumulative amortization of the difference between the initial recognition amount and the maturity amount using the effective interest rate

method and further adjusted for any loss allowance. The gross carrying amount of a financial asset refers to its amortized co st before

adjusting for any loss allowance.

2. Summary of material accounting policies

(cont’d)

Interest income is recognized using the effective interest rate method for debt instruments subsequently measured at amortize d cost or at

FVOCI. For financial assets that are not credit-impaired at acquisition, interest income is calculated by applying the effective interest rate

to the gross carrying amount of the financial asset (excluding those that have subsequently become credit -impaired). For financial assets

that have subsequently become credit-impaired after initial recognition, interest income is recognized by applying the effective interest

rate to the amortized cost of the financial asset. If, in a subsequent reporting period, the credit risk of a credit -impaired financial instrument

improves and the asset is no longer considered impaired, interest income is recognized by applying the effective interest rate to the gross

carrying amount.

For financial assets that are credit-impaired at acquisition, interest income is recognized by applying the credit-adjusted effective interest

rate to the amortized cost of the financial asset from the point of initial recognition. Even if the credit risk of a financial asset subsequently

improves and it is no longer considered impaired, the calculation of interest income does not change to be based on the gross carrying

amount.

Interest income is recognized in profit or loss and is presented under ‘Interest income’.

B. Debt instruments classified as at FVOCI

At initial recognition, debt instruments are measured at fair value plus transaction costs. For debt instruments at fair valu e through OCI,

subsequent changes in the carrying amount of debt instruments arising from foreign exchange revaluation, impairment losses or reversals,

and interest revenues calculated using the effective interest method are recognized in profit or loss and computed in the same manner as

for financial assets measured at amortized cost. The remaining fair value changes are recognized in other comprehensive income (OCI)

and accumulated in accumulated other comprehensive income (AOCI). Upon derecognition, the cumulative fair value change s recognized

in OCI is reclassified to profit or loss.

C. Equity instruments designated as at FVOCI

At initial recognition, the Group may make an irrevocable election to designate equity investments as measured at FVOCI on an

instrument-by-instrument basis. However, this designation is not permitted if the equity investment is held for trading or constitutes

contingent consideration recognized by an acquirer in a business combination.

A financial asset is classified as held for trading if:

- it is acquired for the purpose of selling in the short term;

- it is part of a specific portfolio of financial instruments that are jointly managed, and there is evidence that the portfoli o is being operated

with the objective of generating short-term profits upon initial recognition; or

- it is a derivative (excluding derivatives that are financial guarantee contracts or those designated as and effectively servi ng as a hedging

instrument).

Investments in equity instruments classified as FVOCI are initially measured at fair value plus transaction costs. Subsequent ly, they are

measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income (OCI) and

accumulated in accumulated other comprehensive income (AOCI). Upon disposal, the accumulated gains or losses are not reclassi fied to

profit or loss but are instead transferred to retained earnings.

If dividends from an equity instrument do not clearly represent a recovery of the investment cost, they are recognized in pro fit or loss in

accordance with KIFRS 1109. Dividends are presented as other financial income.

D. Financial assets measured at FVPL

Financial assets that do not meet the criteria for measurement at amortized cost or FVOCI are measured at FVPL.

- Equity instruments that are neither held for trading nor contingent consideration in a business combination and that were not designated

as FVOCI at initial recognition are classified as at FVPL (refer to C. above)

- Debt instruments that do not meet the criteria for measurement at amortized cost or FVOCI (refer to sections A. and B. above) are

classified as FVPL. Additionally, if the measurement of a debt instrument at FVPL eliminates or significantly reduces an acc ounting

mismatch arising from differences in measurement or recognition of assets, liabilities, or related gains and losses, the Grou p may designate

such a debt instrument as FVPL at initial recognition.

2. Summary of material accounting policies

(cont’d)

Financial assets measured at FVPL are remeasured at fair value at the end of each reporting period, with changes in fair value recognized

in profit or loss, except for portions designated as part of a hedging relationship. Net gains or losses recognized in profit or loss include

dividends received from financial assets, which are presented under 'Other Financial Income'. Interest income earned from financial assets

measured at FVPL is also presented under ‘Other Financial Income’.

2) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at amor tized cost

or at FVOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee contracts. The amount of expected

credit losses is updated at each reporting date to reflect changes in credit risk since the initial recognition of the respective financial

instrument.

The Group always recognizes lifetime expected credit losses (ECL) for trade receivables, contract assets and lease receivables. The ECLs

on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience and v aluation of

individual assets, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of forecasts on present

and future conditions reflecting the time value of money where appropriate.

For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial

recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognitio n, the Group

measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial

instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial

instrument that are possible within 12 months after the reporting date.

A. A significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the

risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument

at the date of initial recognition. In making this assessment, the Group considers both appropriate and corroborating quantit ative and

qualitative information, including past experience and future outlook information that is readily available without undue cost or effort.

The Group’s future outlook information includes consideration of various external data on current and future economic informa tion

relating to the Group’s core business and the future prospects of the industry in which the Group’s borrowers operate, sourced from the

Group’s financial analysts, government agencies, related think tanks and similar institutions.

In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial

recognition:

- an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;

- a significant deterioration in external market indicators of credit risk for a particular financial instrument. For example, cr edit spreads,

significant increases in the price of credit default swaps for borrowers, or the length or extent to which the fair v alue of a financial asset

falls below its amortized cost;

- an actual or expected significant deterioration in the business performance of the borrower;

- a significant increase in credit risk for other financial instruments of the same borrower; or

- changes that result in a significant deterioration in the borrower's ability to pay, such as actual or expected significant a dverse changes

in the borrower's regulatory, economic and technical environment.

Regardless of the outcome of such assessments, if there is a delinquency exceeding the contractual payment date and there is no reasonable

and supportable information to the contrary, it is considered that the credit risk of the financial instrument has increased significantly since

initial recognition.

Notwithstanding the above, if the Group determines that a financial instrument has a low credit risk at the end of the report ing period, it

believes that the credit risk of that instrument has not increased significantly. If (1) the risk of default of a fi nancial instrument is low, (2)

the borrower has a strong ability to meet its contractual cash flow payment obligations in the short term, and (3) the borrow er's ability to

meet its contractual cash flow payment obligations may be weakened due to unfavorable changes in the economic and business

environment but such a possibility of ability weakening is not certain, the Group determines that the financial instrument has low credit

risk.

2. Summary of material accounting policies

(cont’d)

In line with international practice, the Group considers financial assets with an external credit rating equivalent to “investment grade”

under generally accepted international practices, or financial assets with an internal credit rating classified as "normal" where an external

credit rating is not available, to have low credit risk. "Normal" means that the counterparty has a sound financial position and is not in

arrears.

In the case of financial guarantees, the date on which the Group becomes a party to the irrevocable agreement is the initial recognition

date for the purpose of assessing a financial instrument for impairment. In assessing whether there has been a significant increase in credit

risk since the initial recognition of a financial guarantee contract, consideration is given to changes in the risk that a pa rticular debtor will

default.

The Group periodically reviews the effectiveness of the requirements used to determine whether credit risk has increased sign ificantly and

adapts those requirements to ensure that they are capable of determining whether credit risk has increased significan tly before they are

overdue.

B. Definitions of default

The Group believes that, based on past experience, a financial asset that meets one of the following conditions is not recoverable. The

following conditions are considered to constitute a default event for internal credit risk management purposes.

- if the debtor violates the terms of a performance obligation; or

- if the overdue days of financial assets are significantly exceeded

C. Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that

financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

- significant financial difficulty of the issuer or the borrower;

- a breach of contract, such as a default or past due event as defined by the Group’s internal policy (refer to B above);

- the inevitable relaxation of borrowing conditions due to economic or contractual reasons related to the borrower's financial difficulties;

- an increased likelihood of the borrower’s bankruptcy or other financial restructuring; or

- the disappearance of an active market for the financial asset due to financial difficulties.

D. Measurement and recognition of the expected credit losses

The measurement of ECLs is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default)

and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by

forward-looking information as described above. The exposure to default on a financial asset represents the total carrying amount of the

asset at the end of the reporting period, and the exposure at default on a financial guarantee contract includes the amount used until the

end of the reporting period plus the amount expected to be used in the future until the date of default based on the Group's understanding

of the debtor's specific future financial needs, other relevant forward-looking information, and past trends.

For financial assets, the ECLs are estimated as the difference between all contractual cash flows that are due to the Group in accordance

with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. For lease

receivables, the cash flow for calculating expected credit losses is consistent with the cash flow used to measure the lease receivables in

accordance with KIFRS 1116.

In the case of financial guarantee contracts, the Group is required to pay only for the default event of the debtor in accord ance with the

terms of the financial instrument to be guaranteed and the expected credit losses are determined by deducting the amo unt expected to be

received from the guarantor, debtor, or other third parties.

If a loss allowance was measured for a financial instrument at an amount equal to lifetime expected credit losses in the prev ious period,

but is no longer a requirement for lifetime expected credit losses, the loss allowance is measured at an amount equal to 12-month expected

credit losses at the end of the current term (other than financial assets subject to the simplified method).

The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustme nt to their

carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVOCI , for which the

impairment gains or losses are recognized in other comprehensive income and accumulated in accumulated other comprehensive income,

and do not reduce the carrying amount of the financial assets in the statement of financial position.

2. Summary of material accounting policies

(cont’d)

Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the

financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor

retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group continues to recognize

the financial asset to the extent of its continuing involvement in the asset. If the Group retains substantially all the risks and rewards of

ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collat eralized

borrowing for the proceeds received.

Offset of financial instruments

Financial assets and liabilities are offset and presented on a net basis in the statement of financial position when there is a legally enforceable

right to offset the recognized amounts and there is an intention either to settle on a net basis or to realize the asset and settle the liability

simultaneously. The legally enforceable right to offset must not be contingent on future events and must be enforceable in the normal course

of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

(8)

Inventories

The acquisition cost calculated by the individual method is the amount reported on the statement of financial position. The quantity and value

are determined using the perpetual inventory system throughout the year, with physical inventory counts conducted at year-end to reconcile

records. If the net realizable value of inventories at the end of the reporting period falls below the acquisition cost, the net realizable value is

reported on the statement of financial position. The lower of cost or market method is applied on an item-by-item basis, with any inventory

valuation losses recognized by reducing the inventory value and increasing expenses for goods used.

(9)

Investment property

Investment properties are properties held to earn rentals or for capital appreciation or both. Investment properties are measured initially at

their cost, and transaction costs are included in the initial measurement. After initial recognition, the book value of investment properties is

presented at the cost less accumulated depreciation and accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of the asset when, and only when it is probable that future economic benefits

associated with the asset will flow to the Group, and the cost of the asset can be measured reliably, or recognized as a sepa rate asset if

appropriate. The carrying amount of what was replaced is derecognized. Routine maintenance and repairs are expensed as incurred.

Land is not depreciated, and other investment properties are depreciated using the straight-line method over a period of 8 to 10 years.

The Group reviews the depreciation method, the estimated useful lives and residual values at the end of each annual reporting period. If

expectations differ from previous estimates, the changes are accounted for as a change in accounting estimate.

Investment property is derecognized from the statement of financial position when it is disposed of, or when it is permanentl y withdrawn

from use and no future economic benefits are expected from its disposal. The gain or loss arising from the derecognition of investment

property is determined as the difference between the net disposal proceeds and the carrying amount and is recognized in the profit or loss

of the period in which the investment property is derecognized.

(10)

Property, plant and equipment

Property, plant and equipment are valued at cost less accumulated depreciation and accumulated impairment losses. Property, p lant and

equipment are recognized if, and only if it is probable that future economic benefits associated with the asset will flow to the Group, and

the cost of the asset can be measured reliably. After initial recognition, property, plant and equipment are stated at cost less accumulated

depreciation and accumulated impairment losses. The cost includes any cost directly attributable to bringing the asset to the location and

condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of

dismantling and removing the item and restoring the site on which it is located. In addition, if the recognition criteria are met, the subsequent

costs will be added to the carrying amount of the asset or recognized as a separate asset, and the carrying amount of what wa s replaced is

derecognized. For investments in kind, donations, or other free-of-charge assets, fair value shall be their acquisition cost.

2. Summary of material accounting policies

(cont’d)

Subsequent costs are added to the asset's carrying amount or recognized as a separate asset only if it is probable that future economic

benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. The carrying amou nt of the

replaced part is derecognized, while all other repairs and maintenance expenses are recognized in profit or loss for the financial period in

which they are incurred.

Land is not depreciated. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. The

estimated useful lives are as follows:

	Estimated useful lives (years)
Buildings	7-24
Equipment	2-10
Facilities	2-45
Vehicles	2-10

The Group reviews the depreciation method, the estimated useful lives and residual values of property, plant and equipment at the end of

each annual reporting period. If expectations differ from previous estimates, the changes are accounted for as a change in an accounting

estimate.

(11)

Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost, less accumulated amortization and accumulated

impairment losses. Amortization is computed using the straight-line method based on the estimated useful lives of the assets.

A summary of the policies applied to the Group’s intangible assets is as follows:

	Estimated useful lives (years)
Trademarks	5-10
Patents	5
Software	3-5
Membership	Contractual term or Indefinite
Others	Indefinite

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that

the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are

reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future

economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes

in accounting estimates.

Intangible assets that are acquired in a business combination and recognized separately from goodwill are initially recognized at their fair

value at the acquisition date. Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less

accumulated amortization and accumulated impairment losses. Intangible assets with indefinite useful lives are not amortized, but are tested

for impairment annually, either individually or at the CGU level. The assessment of indefinite life is reviewed annually to determine whether

the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. An

intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected

from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds

and the carrying amount of the asset) is included in the statement of profit or loss.

(12)

Impairment of property, plant and equipment and intangible assets

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable

amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the

recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Joint assets are also allocated to individual cash-generating units or otherwise, they are allocated to the smallest group of cash-generating units

for which a reasonable and consistent allocation basis cannot be identified.

Intangible assets with indefinite useful lives or intangible assets not yet available for use are not amortized, but tested for impairment annually.

Additionally, impairment tests are conducted whenever there are indications that an asset may be impaired.

2. Summary of material accounting policies

(cont’d)

The recoverable amount is measured as the higher of an individual asset's or cash-generating unit's fair value less costs to sell and its value in

use. In measuring value in use, the present value of the estimated future cash flows is determined by discounting them at a pre-tax discount

rate that reflects current market assessments of the time value of money and the specific risks of the asset that have not been adjusted for in

the future cash flows.

If the recoverable amount of an individual asset (or cash-generating unit) is less than its carrying amount, the carrying amount of the asset (or

cash-generating unit) is reduced to the recoverable amount, and the amount of the reduction is recognized as an impairment loss. The

impairment loss is recognized immediately in profit or loss. If an impairment loss is reversed, the carrying amount of the asset (or cash-

generating unit) is increased to the recoverable amount. The reversal of an impairment loss is also recognized immediately in profit or loss.

(13)

Financial liabilities and equity instruments

Debt instruments and equity instruments issued by the Group are recognized as financial liabilities or equity depending on the contract and

the definitions of a financial liability and an equity instrument. When treasury shares are reacquired, such equity instruments are directly

deducted from equity. Gains or losses on the purchase, sale, issuance, or cancellation of treasury shares are not recognized in profit or loss.

①

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity

instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

②

Financial guarantees contracts liabilities

A financial guarantee contract is a contract that the issuer must pay a certain amount of money to compensate for losses incurred by the holder

due to the failure of a specific debtor to make a payment on the due date under the original contract or modified terms of the debt instrument.

Financial guarantee liabilities are measured initially at fair value and subsequently measured at the greater of the following, unless they are

designated as at fair value through profit or loss or arising from the transfer of assets.

③

Financial liabilities measured at amortized cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) designated

as at FVPL as of the date of initial recognition, are measured subsequently at amortized cost using the effective interest rate method.

The effective interest rate method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over

the relevant period. The effective interest rate is the rate that exactly discounts the expected future cash payments or receipts (including fees

and points that are an integral part of the effective interest rate, transaction costs, and other premiums or discounts) over the expected life of

the financial liability, or (where appropriate) a shorter period, to the net carrying amount of the financial liability.

④ Derecognition of financial liabilities

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The

difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit

or loss.

(14)

Post-employment benefit plans

The Group operates a defined contribution pension plan. Contributions to defined contribution retirement benefit plans are recognized as

expenses when employees provide services eligible for payment but the contributions are not included in provisions for retirement benefits.

(15)

Long-term employee benefits obligations

The Group discounts other long-term employee benefits, which are not paid within 12 months from the end of the reporting period in which

the employee provided the relevant service, to present values based on future benefits earned in return for services provided in the current and

past periods. Remeasurements are recognized in profit or loss in the period in which they occur.

(16)

Deposits received for travel and advances received

The Group records the full sum received from its customers for travel programs as deposits received until the Group fulfils its obligation to

provide the corresponding services. Furthermore, the Group accounts for the funds received from the customers for the provision of travel

vouchers and the consideration received from affiliates in return for the points granted to the customers engaged in its customer loyalty

programs as advances received.

2. Summary of material accounting policies

(cont’d)

(17)

Provisions

A provision is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an

outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting

period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is

recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an

outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

Provisions for customer reward points are recognized based on the estimated future costs expected to be incurred in connection with points

granted to customers. Revenue is not recognized at the time the points are granted but is recognized when the points are redeemed and the

related performance obligation is satisfied.

Other provisions are recognized based on the estimated expenditures expected to be incurred in connection with accidents and litigation. The

timing and amount of payments may vary depending on the outcome of the litigation.

Restoration provisions are recognized for the estimated costs required to restore leased assets to their original condition upon termination of

the lease, based on the best estimate of the expenditure required to settle the obligation.

(18)

Revenue from contracts with customers

Revenue is recognized based on the consideration agreed upon in the customer contract. The Group records revenue when control over goods

or services is transferred to the customer.

①

Revenue from provision of services

The Group is primarily engaged in the operation of travel arrangements and hotel services, providing services related to the sale of travel

packages, airline tickets, and hotel rooms.

The Group is the principal and agent in customer relationships and recognizes net revenue for services when the Group acts as an agent.

In the case of revenue from the provision of hotel services, revenue is recognized when its customers check in and stay. On the other hand,

when providing food and beverages, etc., revenue is recognized when the service is provided.

The Group operates its customer loyalty program by providing customers with award credits as part of their sales transactions, and customers

can use the award credits to obtain free or discounted travel programs. The fair value of the award credits is estimated by taking into account

the fair value of the consideration provided for the recovered award credits, the expected recovery rate, and the expected recovery time.

In sales transactions that grant award credits, the fair value of consideration that is received or will be received from customers is distributed

by award credits and sales. The consideration allocated to the award credits is recognized as revenue when the award credits are recovered and

the obligation to provide compensation is fulfilled.

②

Revenue from sale of goods

The Group recognizes revenue as a total amount only when it comes to proactive control of some airline tickets, hotels, tickets, etc.

(19)

Finance income

①

Interest income

Interest income is recognized if it is probable that future economic benefits associated will flow in, and the amount can be measured reliably.

Recognition of interest income is based on the principal amount and the effective interest rate over the period. The effective interest rate refers

to the rate that aligns the present value of the anticipated future cash flows to be received over the expected maturity of the financial asset with

its net book value.

2. Summary of material accounting policies

(cont’d)

②

Dividend income

Dividend income is recognized upon establishment of the right to receive dividends.

(20)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized to the cost of those assets,

until they are ready for their intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready

for its intended use or sale.

Investment income earned on the temporary investment of specific borrowings made for the acquisition of qualifying assets is deducted from

the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(21)

Share-based payment arrangement

The equity-settled share-based payment transactions given to employees and others providing similar services are measured at the fair value

of the equity instruments at the date of grant.

The fair value of the equity-settled share-based payment transactions determined on the grant date is expensed on a straight-line basis over the

vesting period, based on the Group's estimate of the equity instrument to be vested. For each end of the reporting period, the Group adjusts the

estimate of the number of equity instruments expected to be vested. The impact of the revision of the original estimates, if any, is recognized

in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment in other components of equity.

Equity-settled, share-based payment transactions with parties other than employees are measured at the fair value of the goods or services

received except where that fair value cannot be estimated reliably; in which case they are measured at the fair value of the equity instruments

granted, measured at the date the entity obtains the goods or the counterparty renders the service.

For cash-settled, share-based payments, a liability is recognized for the goods or services acquired, measured initially at the fair value of the

liability. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured,

with any changes in fair value recognized in profit or loss for the year.

(22)

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment

in which each entity operates (the “functional currency"). The consolidated financial statements are presented in Korean won, which is the

Parent Company’s functional and presentation currency.

Foreign currency transactions and translation at the end of the reporting period

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign

exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities

denominated in foreign currencies at year-end exchange rates are generally recognized in profit or loss. They are deferred in other

comprehensive income if they relate to qualifying cash flow hedges and the qualifying effective portion of net investment hedges, or are

attributable to the monetary part of the net investment in a foreign operation.

Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other

foreign exchange gains and losses are presented in the statement of profit or loss within “other income or other expenses”.

Exchange differences arising on non-monetary financial assets and liabilities such as financial assets measured at fair value through other

profit or loss and financial assets measured at fair value through other comprehensive income are recognized in profit or loss and included in

OCI, respectively, as part of the fair value gain or loss.

(23)

Income tax expense and deferred income tax

Income tax expense is composed of current and deferred tax.

2. Summary of material accounting policies

(cont’d)

① Current income tax

The current tax is computed based on the taxable profit for the current year. The taxable profit differs from the profit before income tax as

reported in the consolidated statements of income because it excludes items of income or expense that are taxable or deductible in other years

and it further excludes items that are never taxable or deductible. The Group’s current tax liability is calculated using tax rates that have been

enacted or substantively enacted by the end of the reporting period.

In accordance with the temporary exception to the accounting requirements for deferred taxes related to Pillar Two income taxes under K-

IFRS 1012, the Group does not recognize deferred tax assets and liabilities related to Pillar Two legislation and does not disclose information

about such deferred taxes.

Under the global minimum tax legislation, the parent entity is required to pay additional tax in the Republic of Korea on profits of subsidiaries

that are taxed at an effective tax rate below 15 percent. There is no current tax expense related to Pillar Two income taxes for subsidiaries

located in jurisdictions where the annual effective tax rate is estimated to be below 15 percent. The estimated annual effective tax rate may

change due to various factors, including tax incentives available to subsidiaries and adjustments required under the legislation in determining

global minimum tax income in subsequent periods. Accordingly, current tax expense related to Pillar Two income taxes is subject to estimation

uncertainty.

② Deferred income tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial

statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all

taxable temporary differences. Deferred tax assets shall be generally recognized for all deductible temporary differences to the extent that it

is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets

and liabilities shall not be recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business

combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates and interests

in joint ventures, except when the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the

temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated

with such investments and interests are only recognized to the extent that taxable profit will be available against which the temporary difference

can be utilized and they are expected to be reversed in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable

that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied in the period in which the liability is settled or

the asset is realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The

measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Group expects

to recover or settle the carrying amount of its assets and liabilities at the end of the reporting period.

Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets against current tax

liabilities, when the income taxes are levied by the same taxation authority, and when the Group intends to settle the current tax assets and

liabilities on a net basis.

③ Recognition of current and deferred income tax

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income

or directly in equity in the same or a different accounting period, in which case the related tax effects are also recognized outside profit or loss,

or when they arise from a business combination.

2. Summary of material accounting policies

(cont’d)

(24)

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market

participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for

measurement or disclosure purposes in these consolidated financial statements is determined on such a basis, except for leasing transactions

that are within the scope of KIFRS 1116 Leases, and measurements that have some similarities to fair value, but are not fair value, such as

net realisable value in KIFRS 1002 Inventories or value in use in KIFRS 1036 Impairment of Assets.

In addition, for financial reporting purposes, fair value measures are classified as Level 1, 2, or 3, based on the observable degree of the

input used for fair value measurement and the significance of the input variables for the entire fair value measurement:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2: inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly;

and

Level 3: unobservable inputs for the asset or liability.

(25)

Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be

complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related

costs, for which it is intended to compensate, are recognized as expenses. When the grant relates to an asset, it is recognized as income in

equal amounts over the expected useful life of the related asset.

3. Critical accounting judgments and key sources of estimation uncertainty:

In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions about the

carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

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

in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision

affects both current and future periods.

The following items represent the key assumptions and major sources of other estimation uncertainty concerning transactions at the end of

the reporting period that have a significant risk of resulting in material adjustments to the carrying amounts of assets and liabilities within

the next financial year.

A. Impairment assessment of cash-generating units including goodwill

The Group performs an impairment assessment by comparing the carrying amounts of cash-generating units, including goodwill, with the

recoverable amount at the end of each reporting period. The impairment assessment is performed by estimating the recoverable amount

(value in use or fair value less costs of disposal) using appropriate valuation techniques.

B. Allowance for doubtful accounts (expected credit losses)

When measuring expected credit losses, the Group uses reasonable and supportable forward-looking information based on assumptions

about the future movements of different economic variables and how those variables will affect each other.

Loss given default represents an estimate of the loss arising when default occurs. It is based on the difference between the contractual cash

flows due and those that the creditor expects to receive, taking into account cash flows from collateral and credit enhancements. The

probability of default constitutes a key input in measuring expected credit losses.

The probability of default is an estimate of the likelihood of default over a given time horizon, including historical information and

assumptions and expectations of future conditions.

C. Measurement of provisions

Provisions related to litigation costs and restoration obligations are recognized and measured based on estimates derived from past

experience.

3. Critical accounting judgments and key sources of estimation uncertainty (cont’d):

D. Recoverability of deferred tax assets

The recognition and measurement of deferred tax assets and liabilities require management’s judgment. Whether deferred tax assets are

recognized and the extent to which they are recognized depends on assumptions about future conditions and management’s judgment.

4. Cash and cash equivalents:

Details of cash and cash equivalents as of December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)	December 31, 2025	December 31, 2024
Cash on hand	216,555	244,043
Bank deposits	81,458,728	105,439,030
Total	81,675,283	105,683,073

5. Trade and other receivables:

(1)

Details of trade and other receivables as of December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)			December 31, 2025		December 31, 2024
Description	Accounts	Current	Non-current	Current	Non-current
	Trade receivables	78,405,735	-	72,531,490	-
Trade receivables	Allowance for doubtful accounts	(6,175,879)	-	(9,866,129)	-
	Total	72,229,856	-	62,665,361	-
	Other receivables (*)	4,337,919	121,232	6,338,727	-
	Allowance for doubtful accounts	(2,299,104)	(121,232)	(2,597,206)	-
	Subtotal	2,038,815	-	3,741,521	-
	Loan	-	6,444,664	502,756	4,118,399
	Allowance for doubtful accounts	-	(5,913,235)	(502,756)	(3,748,322)
	Subtotal	-	531,429	-	370,077
Other receivables	Accrued revenue	3,701,608	-	4,007,877	-
	Allowance for doubtful accounts	(568,802)	-	(436,322)	-
	Subtotal	3,132,806	-	3,571,555	-
	Guaranteed deposits	6,745,523	448,540	13,901,237	837,789
	Allowance for doubtful accounts	(2,760,589)	-	(3,273,708)	-
	Subtotal	3,984,934	448,540	10,627,529	837,789
	Total	9,156,555	979,969	17,940,605	1,207,866

(*) The Group reclassifies finance lease receivables that have reached maturity to other receivables. The amounts reclassified for the years ended December 31,

2025 and 2024 were KRW 578,733 thousand and KRW 918,817 thousand, respectively. No allowance for doubtful accounts was reclassified in the current

year, while KRW 340,083 thousand was reclassified in the prior year.

(2)

Changes in allowances for doubtful accounts for each of the two years in the period ended December 31, 2025 are as follows:

				2025
	Beginning	Reversal	Write-off	Other(*1)	Foreign exchange	Ending
(In thousands of Korean won)		(amortization)			difference
Trade receivables	(9,866,129)	1,994,070	1,949,943	-	(253,763)	(6,175,879)
Other receivables	(2,597,206)	197,339	100,416	-	347	(2,299,104)
Long-term other receivables	-	(121,232)	-	-	-	(121,232)
Short-term loans	(502,756)	494,038	-	-	8,718	-
Long-term loans	(3,748,322)	(2,026,239)	-	(110,586)	(28,088)	(5,913,235)
Accrued revenue	(436,322)	(132,480)	-	-	-	(568,802)
Guaranteed deposits	(3,273,708)	308,266	204,853	-	-	(2,760,589)
Total (*2)	(20,424,443)	713,762	2,255,212	(110,586)	(272,786)	(17,838,841)

(*1) Including KRW 110,586 thousand recognized as an allowance for doubtful accounts on long-term loans, out of the accumulated unrecognized losses

exceeding the carrying amount of investments in associates.

(*2) Including the amount classified as discontinued operations.

5. Trade and other receivables

(cont’d)

				2024
	Beginning	Reversal	Write-off	Transfer	Foreign exchange	Ending
(In thousands of Korean won)		(amortization)			difference
Trade receivables	(9,818,402)	(7,194,411)	7,488,133	-	(341,449)	(9,866,129)
Other Receivables (*1)	(6,257,049)	3,522,228	10,074	(340,083)	467,624	(2,597,206)
Short-term loans	(944,512)	515,570	-	-	(73,814)	(502,756)
Long-term loans	(1,455,400)	(2,132,516)	-	-	(160,406)	(3,748,322)
Accrued revenue	-	(436,322)	-	-	-	(436,322)
Guaranteed deposits	(3,197,338)	(76,370)	-	-	-	(3,273,708)
Total (*2)	(21,672,701)	(5,801,821)	7,498,207	(340,083)	(108,045)	(20,424,443)

(*1) Including transfers to allowances for doubtful accounts for other receivables from those for finance lease receivables for the year ended December 31,

2024.

(*2) Including the amount classified as discontinued operations.

(3)

The aging analysis (based on the date of occurrence) on trade receivables subject to allowance for doubtful accounts as of December 31,

2025 and 2024 is as follows:

(In thousands of Korean won)		December 31, 2025		December 31, 2024
Trade receivables	Carrying amount	Loss allowance	Carrying amount	Loss allowance
Up to 90 days	70,235,320	(108,625)	59,913,724	(197,640)
90 to 180 days	2,079,218	(169,740)	3,283,966	(1,325,389)
180 to 270 days	232,585	(59,851)	2,383,011	(1,424,362)
270 to 365 days	26,882	(15,303)	70,129	(43,224)
Over 365 days	5,831,730	(5,822,360)	6,880,660	(6,875,514)
Total	78,405,735	(6,175,879)	72,531,490	(9,866,129)

(4)

The aging analysis (based on the date of occurrence) on other receivables for which allowance for doubtful accounts are established as of

December 31, 2025, and 2024 is as follows:

(In thousands of Korean won)		December 31, 2025		December 31, 2024
Other receivables	Carrying amount	Loss allowance (*)	Carrying amount	Loss allowance
Up to 90 days	9,841,512	(718,445)	16,690,529	(600,444)
90 to 180 days	785,436	(676,727)	865,393	(22,641)
180 to 270 days	49,887	(1,077)	1,529,882	(172,981)
270 to 365 days	55,180	(3,280)	388,490	(7,918)
Over 365 days	11,067,471	(10,100,081)	10,232,491	(9,701,566)
Total	21,799,486	(11,499,610)	29,706,785	(10,505,550)

(*) For the investments in HANATOUR TD CO., LTD., an associate, the accumulated unrecognized losses amounting to KRW 163,352 thousand and KRW

52,764 thousand as of December 31, 2025 and 2024, respectively, which exceeded the carrying amount of the investments in the associate, were recognized

as loss allowance for long-term loans (see Note 16).

6. Finance lease receivables:

(1)

Financial lease contracts

As of December 31, 2025, the Group provides offices on lease.

(2)

Details of finance lease receivables as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Up to 1 year	788,443	935,172
1 to 2 years	20,046	457,915
2 to 3 years	2,082	3,358
Total Lease Expense	810,571	1,396,445
Less: unrealized interest income	(7,628)	(9,539)
Present value of minimum lease payment	802,943	1,386,906
Total lease investment, net	802,943	1,386,906

6. Finance lease receivables (cont’d):

(3)

The classification of current portion of finance lease receivables as of December 31, 2025 and 2024 is as follows:

(In thousands of Korean won)		December 31, 2025		December 31, 2024
	Current	Non-current	Current	Non-current
Finance lease receivables (*)	785,218	17,725	929,084	457,822

(*) The Group reclassifies finance lease receivables that have reached maturity to non-trade receivables. The amounts reclassified for the years ended December

31, 2025 and 2024 were KRW 578,733 thousand and KRW 918,817 thousand, respectively.

(4)

The interest income recognized by the Group in relation to the lease contracts for each of the two years in the period ended December 31,

2025, and December 31, 2024, is KRW 140,890 thousand and KRW 182,881 thousand, respectively.

7. Inventories:

(1)

Details of inventories as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Airline tickets and others	46,823,279	71,292,358
Valuation allowance for inventories	(744,021)	(1,301,903)
Storage goods	132,872	121,524
Total	46,212,130	70,111,979

(2)

Changes in valuation allowances of inventories for each of the two years in the period ended December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	2025	2024
Beginning	(1,301,903)	(785,525)
Valuation profit(loss) on inventories	557,882	(516,378)
Ending	(744,021)	(1,301,903)

8. Advanced payments and other assets:

(1)

Details of advanced payments as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Advanced payments	46,675,976	47,679,221
Allowance for doubtful accounts	(521,813)	(609,321)
Total	46,154,163	47,069,900

(2)

Change in allowances for doubtful accounts for advanced payments for each of the two years in the period ended December 31, 2025 are

as follows:

(In thousands of Korean won)	2025	2024
Beginning	(609,321)	(697,511)
Reversal of bad debt expense	85,037	93,326
Foreign exchange difference	2,471	(5,136)
Ending	(521,813)	(609,321)

(3)

Details of other assets as of December 31, 2025 and 2024 are as follows:

		December 31, 2025		December 31, 2024
(In thousands of Korean won)	Current	Non-current	Current	Non-current
Prepaid expenses	4,353,130	540,743	4,159,470	640,116
Prepaid value added tax	344,790	-	181,709	-
Total	4,697,920	540,743	4,341,179	640,116

9. Other financial assets:

Details of other financial assets as of December 31, 2025 and 2024 are as follows:

		December 31, 2025			December 31, 2024
(In thousands of Korean won)	Current	Non-current		Current	Non-current
Long-term financial instruments		-	6,119		-	3,959
Guarantee deposits		10,045,376	9,734,067		7,916,694	12,362,637
Financial assets measured at amortized costs		-	249,040		-	342,373
Total		10,045,376	9,989,226		7,916,694	12,708,969

10. Investment properties:

(1)

Details of the carrying amounts of investment properties as of December 31, 2025 and 2024 are as follows:

			December 31, 2025
(In thousands of Korean won)	Land		Buildings	Total
Acquisition cost		742,271	1,755,347		2,497,618
Accumulated depreciation		-	(1,755,347)		(1,755,347)
Carrying Amount		742,271	-		742,271
			December 31, 2024
(In thousands of Korean won)	Land		Buildings	Total
Acquisition cost		757,518	1,791,406		2,548,924
Accumulated depreciation		-	(1,790,601)		(1,790,601)
Carrying Amount		757,518	805		758,323

(2)

Changes in investment properties for each of the two years in the period ended December 31, 2025 are as follows:

			2025
(In thousands of Korean won)	Land		Buildings		Total
Beginning		757,518		805		758,323
Depreciation		-		(817)		(817)
Other differences		(15,247)		12		(15,235)
Ending		742,271		-		742,271
			2024
(In thousands of Korean won)	Land		Buildings		Total
Beginning		738,250		147,839		886,089
Depreciation		-		(145,073)		(145,073)
Other differences		19,268		(1,961)		17,307
Ending		757,518		805		758,323

(3)

Details of income and expense recognized in profit or loss in relation to investment properties for each of the two years in the period

ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Rental income	17,220	55,151
Operating expenses	(2,057)	-
Total	15,163	55,151

(4)

The fair values of investment properties as of December 31, 2025 are as follows:

(In thousands of Korean won)	Book value	Fair value (*)
Land	742,271	3,257,180
Buildings	-	297,626

(*) The fair value of investment properties is classified as Level 3 (unobservable inputs to assets or liabilities) based on the inputs used in the valuation technique.

11. Property, plant and equipment:

(1)

Details of property, plant and equipment as of December 31, 2025 and 2024 are as follows:

					December 31, 2025
(In thousands of Korean won)		Land	Buildings	Vehicles	Equipment	Facilities		Total
Acquisition cost		5,597,349	3,760,292	11,396,060		19,933,232	4,687,719	45,374,652
Accumulated depreciation		-	(3,397,707)	(8,670,101)		(16,514,360)	(3,269,244)	(31,851,412)
Accumulated impairment losses		-	(258,179)	(77,874)		(807,117)	(344,627)	(1,487,797)
Carrying Amount		5,597,349	104,406	2,648,085		2,611,755	1,073,848	12,035,443
				December 31, 2024
	Land	Buildings	Vehicles	Equipment	Facilities	Construction-in-		Total
(In thousands of Korean won)						progress
Acquisition cost	5,712,069	3,835,952	11,140,218	19,514,408	7,079,126	141,681		47,423,454
Accumulated depreciation	-	(3,454,432)	(9,118,898)	(15,684,052)	(5,323,362)	-		(33,580,744)
Accumulated impairment losses	-	(263,482)	(86,101)	(788,989)	(350,417)	-		(1,488,989)
Carrying Amount	5,712,069	118,038	1,935,219	3,041,367	1,405,347	141,681		12,353,721

11. Property, plant and equipment (cont’d):

(2)

Changes in the book values of property, plant and equipment for each of the two years in the period ended December 31, 2025 are as

follows:

				2025
	Land	Buildings	Vehicles	Equipment	Facilities	Construction-in-	Total
(In thousands of Korean won)						progress
Beginning	5,712,069	118,038	1,935,219	3,041,367	1,405,347	141,681	12,353,721
Acquisitions	-	-	1,574,527	1,201,984	623,206	-	3,399,717
Reclassification	-	-	9,832	1,512	-	(11,344)	-
Disposal	-	-	(152,389)	(10,742)	(12,131)	(132,502)	(307,764)
Depreciation	-	(12,376)	(654,556)	(1,561,859)	(886,922)	-	(3,115,713)
Impairment losses	-	-	-	(41,836)	(1,017)	-	(42,853)
Reversal of impairment losses	-	-	-	133	-	-	133
Other differences (*)	(114,720)	(1,256)	(64,548)	(18,804)	(54,635)	2,165	(251,798)
Ending	5,597,349	104,406	2,648,085	2,611,755	1,073,848	-	12,035,443

(*) Including foreign exchange differences and others.

				2024
	Land	Buildings	Vehicles	Equipment	Facilities	Construction-in-	Total
(In thousands of Korean won)						progress
Beginning	5,567,101	401,042	250,243	3,433,564	1,909,699	-	11,561,649
Acquisitions	-	-	1,971,236	1,187,794	170,986	136,216	3,466,232
Disposal	-	-	(2)	(16,665)	(3,593)	-	(20,260)
Depreciation	-	(281,146)	(331,901)	(1,583,584)	(794,361)	-	(2,990,992)
Impairment losses	-	-	(25,380)	(21,487)	(5,255)	-	(52,122)
Other differences (*)	144,968	(1,858)	71,023	41,745	127,871	5,465	389,214
Ending	5,712,069	118,038	1,935,219	3,041,367	1,405,347	141,681	12,353,721

(*) Including foreign exchange differences and others.

12. Intangible assets:

(1)

Details of the book values of intangible assets as of December 31, 2025 and 2024 are as follows:

					December 31, 2025
(In thousands of Korean won)		Industrial					Intangible
	Goodwill	property rights	Patent	Software	Membership	Others	assets in	Total
							acquisition
Acquisition cost	1,123,690	693,822	19,157	59,781,593	1,355,295	11,949	754,111	63,739,617
Accumulated amortization	-	(578,429)	(17,434)	(52,403,494)	(99,209)	-	-	(53,098,566)
Accumulated impairment losses	(738,555)	(10,579)	-	(378,077)	(143,713)	-	-	(1,270,924)
Carrying Amount	385,135	104,814	1,723	7,000,022	1,112,373	11,949	754,111	9,370,127

					December 31, 2024
(In thousands of Korean won)		Industrial					Intangible
	Goodwill	property rights	Patent	Software	Membership	Others	assets in	Total
							acquisition
Acquisition cost	1,123,690	675,915	19,157	55,981,427	1,356,238	11,966	824,045	59,992,438
Accumulated amortization	-	(552,755)	(14,854)	(48,955,048)	(91,559)	-	-	(49,614,216)
Accumulated impairment losses	(738,555)	(10,796)	-	(379,071)	(115,229)	-	-	(1,243,651)
Carrying Amount	385,135	112,364	4,303	6,647,308	1,149,450	11,966	824,045	9,134,571

(2)

Changes in the book values of intangible assets for each of the two years in the period ended December 31, 2025 are as follows:

				2025
(In thousands of	Goodwill	Industrial	Patent	Software	Membership	Others	Intangible assets	Total
Korean won)		property rights					in acquisition
Beginning	385,135	112,364	4,303	6,647,308	1,149,450	11,966	824,045	9,134,571
Acquisitions	-	33,553	-	3,673,850	-	-	682,875	4,390,278
Disposal	-	(24)	-	-	-	-	(6,048)	(6,072)
Amortization	-	(40,964)	(2,580)	(4,011,192)	(7,651)	-	-	(4,062,387)
Reclassification	-	-	-	735,487	-	-	(735,487)	-
Impairment losses	-	-	-	(6,873)	(28,484)	-	-	(35,357)
Other differences (*)	-	(115)	-	(38,558)	(942)	(17)	(11,274)	(50,906)
Ending	385,135	104,814	1,723	7,000,022	1,112,373	11,949	754,111	9,370,127

(*) Including foreign exchange differences and others.

12. Intangible assets (cont’d):

					2024
(In thousands of	Goodwill	Industrial	Patent	Software	Membership	Others	Intangible assets	Total
Korean won)		property rights					in acquisition
Beginning	385,135	131,639	6,883	14,315,560	1,156,139	655,678	69,460	16,720,494
Acquisition	-	25,515	-	362,307	-	-	1,199,548	1,587,370
Disposal	-	(17)	-	(4,495)	-	(576,873)	-	(581,385)
Amortization	-	(44,773)	(2,580)	(8,517,468)	(7,651)	-	-	(8,572,472)
Reclassification	-	-	-	470,939	-	-	(470,939)	-
Reversal of impairment losses	-	-	-	(74)	(229)	(104,886)	-	(105,189)
Other differences (*)	-	-	-	20,539	1,191	38,047	25,976	85,753
Ending	385,135	112,364	4,303	6,647,308	1,149,450	11,966	824,045	9,134,571

(*) Including foreign exchange differences and others.

13. Right-of-use assets:

The Group leases buildings, offices, and vehicles, and in the case of some vehicles and has the option to bargain purchase at the end of the

lease contract. Legal ownership of the right-of-use assets is held by the lease provider as a collateral for lease liabilities.

(1)

As of December 31, 2025 and 2024, details of right-of-use assets by the category of underlying assets are as follows:

			December 31, 2025
(In thousands of Korean won)	Property	Vehicles		Others	Total
Acquisition cost	164,738,063		8,325,053	5,900,995	178,964,111
Accumulated depreciation	(57,340,850)		(6,573,346)	(4,466,674)	(68,380,870)
Accumulated impairment losses	(19,535,476)		-	-	(19,535,476)
Carrying Amount	87,861,737		1,751,707	1,434,321	91,047,765

		December 31, 2024
(In thousands of Korean won)	Property	Vehicles	Others	Total
Acquisition cost	159,251,073	7,994,092	3,800,467	171,045,632
Accumulated depreciation	(45,018,770)	(6,032,727)	(3,447,761)	(54,499,258)
Accumulated impairment losses	(25,983,506)	-	-	(25,983,506)
Carrying Amount	88,248,797	1,961,365	352,706	90,562,868

(2)

Changes in the carrying amounts of right-of-use assets for each of the two years in the period ended December 31, 2025 are as follows:

		2025
(In thousands of Korean won)	Property	Vehicles	Others	Total
Beginning	88,248,797	1,961,365	352,706	90,562,868
Acquisition	8,059,031	1,179,543	2,100,528	11,339,102
Modification	2,579,899	1,231	-	2,581,130
Disposal	(324,854)	(73,731)	-	(398,585)
Depreciation	(15,176,002)	(1,296,383)	(1,018,913)	(17,491,298)
Impairment losses	(3,516,136)	-	-	(3,516,136)
Reversal of impairment loss	9,671,873	-	-	9,671,873
Other differences (*)	(1,680,871)	(20,318)	-	(1,701,189)
Ending	87,861,737	1,751,707	1,434,321	91,047,765

(*) Including foreign exchange differences.

		2024
(In thousands of Korean won)	Property	Vehicles	Others	Total
Beginning	89,700,293	2,025,480	783,620	92,509,393
Acquisition	4,601,828	1,307,452	398,932	6,308,212
Disposal	(315,894)	(5,225)	-	(321,119)
Depreciation	(13,599,225)	(1,429,315)	(829,846)	(15,858,386)
Impairment losses	(3,468,246)	-	-	(3,468,246)
Reversal of impairment loss	9,151,744	-	-	9,151,744
Other differences (*)	2,178,297	62,973	-	2,241,270
Ending	88,248,797	1,961,365	352,706	90,562,868

(*) Including foreign exchange differences and others.

13. Right-of-use assets (cont’d):

(3)

Impairment assessment on cash generating units (“CGU”)

At the end of the reporting period, the Group conducts impairment tests by comparing the carrying amount of CGU with the recoverable

amount.

In the case of the hotel business among the operations of the Group, each branch was selected as a CGU, and an impairment review was

conducted on the CGUs with indications of impairment. As a result, the value in use of the right-of-use assets was set as the recoverable

amount, with impairment losses of KRW 3,273 million and reversal of impairment losses of KRW 9,672 million recognized separately. In

calculating the value in use, a discount rate of 8.52%, based on the weighted average cost of capital (WACC) for the same industry, was

applied to each CGU.

14. Financial assets measured at FVPL:

Details of financial assets measured at FVPL as of December 31, 2025 and 2024 are as follows:

(*1) For the year ended December 31, 2025, KRW 95,000 thousand was recovered and impairment loss of KRW 780 thousand and losses on disposal of KRW

401,128 thousand were recognized.

(*2) The impairment loss of KRW 450,914 thousand was recognized for the year ended December 31, 2025.

(*3) After the rehabilitation application filed by Silla Animal Inc, the Group’s investments in the entity were converted into equity prior to the year ended

December 31, 2024 and was recognized as loss in their entirety. For the year ended December 31, 2025, it was disposed and gains on disposal of KRW 103,470

thousand were recognized.

15. Financial assets measured at FVOCI:

Details of financial assets at FVOCI as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	Percentage of shareholding (%)	December 31, 2025	December 31, 2024
< Non-marketable Equity Securities >
EDUTOUR Inc.	19.90	-	-
Hani Tour Inc.	9.54	2,368	2,368
Jeju Channel Inc.	8.06	116,150	116,000
SAM Consulting So., Ltd.	7.41	100,020	100,020
Nol Universe Co., Ltd. (*)	0.07	116,616	116,616
KC HOSPITALITY CO., LTD	10.00	804,240	804,240
Others	-	468	384
Total		1,139,862	1,139,628

(*) For the year ended December 31, 2024, the entity as a surviving company merged with Yanolja Platform Inc. and changed its name from Interpark Triple

Inc. into Nol Universe Co., Ltd.

16. Investments in associates:

(1)

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

					December 31, 2025		December 31, 2024
		Main business	Location	Reporting date	Ownership	Book value	Ownership	Book value
(In thousands of Korean won)					(%)		(%)
OK Tour Service Inc. (*1)		Travel Agency	Korea	Dec. 31	48.92	4,892	48.92	4,892
Dream Co., Ltd (*2)		Theme Park	Korea	Dec. 31	4.16	-	4.16	-
Mooncademy Inc. (*2)	(*3)	Travel Agency	Korea	Dec. 31	16.91	1,507,930	-	-
HANATOUR EUROPE S.R.L(*4)		Travel Agency	Italy	Dec. 31	50.00	-	50.00	-
HANATOUR TD CO., LTD.		Travel Agency	Thailand	Dec. 31	49.00	-	49.00	-
Total						1,512,822		4,892

(*1) It is an associate remaining with the purpose of preventing the use of similar name of entities that do not exist anymore due to liquidation.

(*2) Although the Group's shareholding is less than 20%, the entity was classified as an associate as it was concluded that the Group has significant influence with

its participation in the Board of Directors of the entity and exercise of voting rights.

(*3) It was acquired during the year, and the deemed acquisition date is December 31, 2025.

(*4) It is an associate that is closed as of December 31, 2025.

(In thousands of Korean won)	December 31, 2025	December 31, 2024
KB-SJ Tourism Venture Union (*1)	991,476	1,488,384
P&I Cultural Innovation Investment Union (*2)	234,326	685,240
Silla Animal Inc. (*3)	-	-
Total	1,225,802	2,173,624

16. Investments in associates (cont’d):

(2)

Changes in investments in associates for each of the two years in the period ended December 31, 2025 are as follows:

(*) The additional investment loss under equity method amounting to KRW 163,352 thousand, exceeding the carrying amount of investments in associates, was

recognized for the long-term investment in equity (long-term loan) .

(*) The additional investment loss under equity method amounting to KRW 52,764 thousand, exceeding the carrying amount of investments in associates, was

recognized for the long-term investment in equity (long-term loan).

(3)

The key financial information on associates that are material to the Group as of December 31, 2025 and 2024 is as follows:

		December 31, 2025			December 31, 2024
(In thousands of Korean won)	Dream Co., Ltd.	HANATOUR TD CO.,	Mooncademy Inc.	Dream Co., Ltd.	HANATOUR TD CO.,
		LTD.			LTD.
Current assets	738,163	1,811,819	1,900,422	1,719,281	379,673
Non-current assets	48,331,247	239,365	33,616	48,865,653	147,901
Total assets	49,069,410	2,051,184	1,934,038	50,584,934	527,574
Current liabilities	40,071,152	1,154,056	246,257	8,937,576	164,057
Non-current liabilities	1,578,084	1,230,500	294,460	31,831,502	471,199
Total liabilities	41,649,236	2,384,556	540,717	40,769,078	635,256
Net sales	7,257,650	5,776,939	1,340,069	7,268,588	593,091
Operating loss	(338,333)	(340,087)	(724,268)	(367,713)	(215,959)
Net loss	(5,045,302)	(467,677)	(242,742)	(2,649,620)	(251,583)
Other comprehensive loss	-	-	-	-	(3,778)
Total comprehensive loss	(5,045,302)	(467,677)	(242,742)	(2,649,620)	(255,361)

(4)

The condensed financial information of major associates for each of the two years in the period ended December 31, 2025 is as follows:

			2025
(In thousands of Korean won)	Cash and cash	Current financial	Non-current	Depreciation of	Interest income	Interest expense
	equivalents	liabilities	financial liabilities	fixed assets
Dream Co., Ltd.	414	38,394,050	1,182,004	1,532,478	53,762	2,333,613
HANATOUR TD CO., LTD.	552,270	862,810	1,226,351	94,888	1,336	86,133
Mooncademy Inc.	697,152	18,476	294,460	-	4,812	11,010

			2024
(In thousands of Korean won)	Cash and cash	Current financial	Non-current	Depreciation of	Interest income	Interest expense
	equivalents	liabilities	financial liabilities	fixed assets
Dream Co., Ltd.	127,597	7,467,024	31,334,553	1,533,568	363	2,269,666
HANATOUR TD CO., LTD.	136,834	86,733	471,199	28,250	833	19,548

					2025
			Investment loss		Share of other
	Beginning	Acquisition	under equity method		comprehensive	Reclassification	Ending
(In thousands of Korean won)			(*)		income(Loss)
OK Tour Service Inc.	4,892		-	-	-	-	4,892
Dream Co., Ltd	-		-	-	-	-	-
Mooncademy Inc.	-		1,507,930	-	-	-	1,507,930
HANATOUR EUROPE S.R.L	-		-	-	-	-	-
HANATOUR TD Co., Ltd. (*)	-		125,832	(65,810)	(7,258)	(52,764)	-
Total	4,892		1,633,762	(65,810)	(7,258)	(52,764)	1,512,822

			2024
			Investment loss under	Share of other
	Beginning	Acquisition	equity method (*)	comprehensive	Ending
(In thousands of Korean won)				income(Loss)
OK Tour Service Inc.	4,892	-	-	-	4,892
Dream Co., Ltd	-	-	-	-	-
HANATOUR EUROPE S.R.L	-	-	-	-	-
HANATOUR TD Co., Ltd. (*)	-	72,363	(70,512)	(1,851)	-
Total	4,892	72,363	(70,512)	(1,851)	4,892

16. Investments in associates (cont’d):

(5)

Details of the adjustment from the net assets of material associates to the carrying amounts of investment assets in associates as of

December 31, 2025 are as follows:

(In thousands of Korean won)	Dream Co., Ltd.	HANATOUR TD CO., LTD.	Mooncademy Inc.
Net assets at the end of the year	7,420,174	(333,372)	1,393,321
(-) Accounting policy differences	(20,033,424)	-	-
Adjusted net asset	(12,613,250)	(333,372)	1,393,321
Group’s share ratio	4.16%	49.00%	16.91%
Net assets share amount	(524,711)	(163,352)	235,573
Discontinuation of equity method	524,711	163,352	-
Goodwill	-	-	1,272,357
Carrying amount at the end of the year	-	-	1,507,930

(6)

Discontinuation of equity method loss recognition

Unrecognized gains and losses and accumulated unrecognized changes in equity that were not recognized after the equity method was

discontinued as of December 31, 2025 are as follows:

(In thousands of Korean won)	Unrecognized losses		Accumulated unrecognized losses
Dream Co., Ltd.		(99,660)	(524,711)

17. Other liabilities:

Details of other liabilities as of December 31, 2025 and 2024 are as follows:

		December 31, 2025		December 31, 2024
(In thousands of Korean won)	Current	Non-current	Current	Non-current
Accounts payable	14,673,585	1,027,744	12,973,952		-
Accrued expenses	35,299,216	-	34,234,626		-
Total	49,972,801	1,027,744	47,208,578		-

18. Borrowings:

(1)

Details of borrowings as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Current:
Short-term borrowings	436,800	4,207,520
Current portion of long-term liabilities	630,412	1,810,441
Total	1,067,212	6,017,961
Non-current:
Long-term borrowings	1,403,368	3,745,133
Total	2,470,580	9,763,094

(2)

Short-term borrowings as of December 31, 2025 and 2024 are as follows:

		Annual interest rate as of	December 31,	December 31,
(In thousands of Korean won)	Lender	December 31, 2025 (%)	2025	2024
	Sumitomo Mitsui Banking Corporation.	-	-	1,872,960
General loan	Mizuho Bank, Ltd.	-	-	1,872,960
	Others (*)	3.50	436,800	461,600
Total			436,800	4,207,520

(*) Borrowings are from the Group’s overseas executives and employees.

18. Borrowings (cont’d):

(3)

Long-term borrowings as of December 31, 2025 and 2024 are as follows:

		Annual interest rate as of	December 31,	December 31,
(In thousands of Korean won)	Lender	December 31, 2025 (%)	2025	2024
	Sumitomo Mitsui Banking Corporation. (*1)	1.10	134,470	409,747
	The Shoko Chukin Bank,Ltd.	-	-	2,639,094
General loan	Kansai Mirai Bank, Ltd. (*2)	1.20	347,048	566,346
	Kiraboshi Bank,Ltd (*1)	0.90	765,175	949,684
	Higashi-Nippon Bank, Ltd. (*1)	0.10~0.90	787,087	990,703
Subtotal			2,033,780	5,555,574
Reclassification to current portion			(630,412)	(1,810,441)
Total			1,403,368	3,745,133

(*1) Payment guarantees from the Credit Guarantee Corporation of Tokyo are provided to the lender for some borrowings (see Note 35).

(*2) Payment guarantees from the Credit Guarantee Corporation of Osaka are provided to the lender for some borrowings (see Note 35).

19. Lease liabilities:

(1)

Lease contracts

The Group uses buildings, offices and vehicles under lease contracts, and in the case of some vehicles, the Group has the option to bargain

purchase at the end of the lease contract. The legal ownership for the carrying amounts of the right-of-use assets amounting to KRW 91,048

million (KRW 90,563 million as of December 31, 2024) is held by the lease provider as a collateral for lease liabilities.

(2)

The classification of current portion of lease liabilities as of December 31, 2025 and 2024 is as follows:

		December 31, 2025		December 31, 2024
(In thousands of Korean won)	Current	Non-current	Current	Non-current
Lease liabilities	17,116,311	89,968,762	16,722,447	96,161,437

(3)

The amounts recognized as gains or losses for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Depreciation of right-of-use assets	17,491,298	15,858,386
Interest expense on lease liabilities	2,144,156	2,231,427
Losses on lease transactions	9,117	1,680
Impairment losses of right-of-use assets	3,516,136	3,468,246
Lease payments for low-value assets	114,266	109,569
Variable lease payments	351,964	436,456
Total	23,626,937	22,105,764

(4)

As of December 31, 2025, there are no lease agreements that have been entered into for which right-of-use assets have not been

recognized. The total cash outflows due to leases, including small lease payments, for each of the two years in the period ended December

31, 2025, and December 31, 2024, are KRW 21,781,051 thousand and KRW 21,425,023 thousand, respectively.

20. Provisions:

Changes in provisions for each of the two years in the period ended December 31, 2025 are as follows:

					2025
(In thousands of Korean	Beginning	Transfer	Amounts used	Third-party	Exchange	Ending	Current	Non-current
				reimbursements	difference
won)
Point provisions (*1)	920,052	636,366	(1,008,637)	-	-	547,781	547,781	-
Other provisions (*2)	124,563	22,605,826	(26,384)	13,951	(129,258)	22,588,698	7,335,265	15,253,433
Provisions for restoration	417,945	59,923	(22,100)	-	(8,359)	447,409	136,595	310,814
Total	1,462,560	23,302,115	(1,057,121)	13,951	(137,617)	23,583,888	8,019,641	15,564,247

(*1) The point provisions transferred is recognized as operating expenses such as advertising expenses.

(*2) The other provisions transferred is comprised of amounts reasonably estimated for obligations expected to arise under funding supplement agreements

(see Note 35).

	December 31, 2025		December 31, 2024
	Present value of		Present valule of
	Minimum lease payments		Minimum lease payments
(In thousands of Korean won)	minimum lease payments		minimum lease payments
Within a year	17,506,469	17,116,311	17,074,805	16,722,447
More than a year and not more than 5 years	32,424,104	28,005,494	32,034,395	27,651,618
More than 5 years	67,992,814	61,963,268	75,303,262	68,509,819
Subtotal	117,923,387	107,085,073	124,412,462	112,883,884
Less: present value discounts	(10,838,314)	-	(11,528,578)	-
Total	107,085,073	107,085,073	112,883,884	112,883,884

20. Provisions (cont’d):

				2024
	Beginning	Transfer	Amounts used	Exchange	Ending	Current	Non-current
(In thousands of Korean won)				difference
Point provisions (*)	1,005,334	1,529,678	(1,614,960)	-	920,052	920,052	-
Other provisions	131,967	-	(7,404)	-	124,563	124,563	-
Provisions for restoration	438,433	34,915	(69,503)	14,100	417,945	9,211	408,734
Total	1,575,734	1,564,593	(1,691,867)	14,100	1,462,560	1,053,826	408,734

(*) The point provisions transferred is recognized as operating expenses such as advertising expenses.

21. Other liabilities other financial liabilities:

(1) Details of other liabilities as of December 31, 2025 and 2024 are as follows:

		December 31, 2025			December 31, 2024
(In thousands of Korean won)	Current	Non-current		Current	Non-current
Unearned revenue		16,883	35,172		23,909	53,124
Deposits		1,798,780	-		2,070,208	-
Value added tax payable		8,940,160	3,622,042		7,674,060	3,955,064
Deferred revenue		3,010,940	-		1,678,192	-
Total		13,766,763	3,657,214		11,446,369	4,008,188

Deferred revenue is associated with the customer loyalty program that the Group operates. The Group gives a certain percentage of the

purchase price as points that can be used in the future when customers (community members and affiliated credit card company’s community

members) who are members of the Hanatour Mileage Club purchase travel programs operated by the Group.

(1)

Details of other financial liabilities as of December 31, 2025 and 2024 are as follows:

		December 31, 2025		December 31, 2024
(In thousands of Korean won)	Current	Non-current	Current	Non-current
Leasehold deposits	2,171,111	69,000	2,067,979	55,440
Deposits for operation	386,865	41,510	446,311	-
Accrued dividends	8,822	-	53,062	-
Total	2,566,798	110,510	2,567,352	55,440

22. Employee benefits:

(1)

Post-employment benefits

The Group operates defined contribution plans. The contributions are recognized as employee benefit expenses when an employee has

rendered service. The amounts of contributions recorded by the Group as post-employment benefits under the defined contribution plan for

each of the two years in the period ended December 31, 2025 are KRW 9,089,318 thousand and KRW 8,438,885 thousand, respectively.

(2)

Long-term employee benefits

Long-term employee benefits of the consolidated entity as of December 31, 2025 and 2024 are as follows:

(*) The long-term employee benefits for the previous period include non-recurring expenses incurred in relation to equity compensation plans.

(In thousands of Korean won)	2025		2024
Long-term employee benefits (*)		586,741		922,711

23. Fair value:

(1)

The carrying amounts and fair values of financial assets as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	Balance sheet	December 31, 2025	December 31, 2024
Financial assets measured at fair value:
FVPL	Financial asset measured at FVPL	1,225,802	2,173,624
FVOCI	Financial asset measured at FVOCI	1,139,862	1,139,628
Total		2,365,664	3,313,252

(2)

The fair value hierarchy of financial assets measured at fair value is as follows:

① Fair value hierarchy
Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
	directly or indirectly
Level 3	Unobservable inputs for the asset or liability

② As of December 31, 2025 and 2024, the fair value hierarchy of financial instruments measured at fair value is as follows:

					December 31, 2025
(In thousands of Korean won)	Level 1			Level 2	Level 3	Total
Financial assets measured at FVPL		-		-	1,225,802		1,225,802
Financial assets measured at FVOCI		-		-	1,139,862		1,139,862
Total		-		-	2,365,664		2,365,664
				December 31, 2024
(In thousands of Korean won)	Level 1		Level 2	Level 3		Total
Financial assets measured at FVPL		-		-	2,173,624		2,173,624
Financial assets measured at FVOCI		-		-	1,139,628		1,139,628
Total		-		-	3,313,252		3,313,252

The Group recognizes transfers between the levels at the time of events or changes in circumstances that result in transfers between the levels.

③ The evaluation methods used to measure the fair value of financial assets measured at FVPL classified as Level 3 by the fair value hierarchy

are as follows:

(In thousands of Korean won)	Fair value	Valuation techniques	Unobservable input variables
KB-SJ Tourism Venture Union	991,476	Adjusted net asset method	Fair Value of Net Assets
P&I Cultural Innovation Investment Union	234,326
Total	1,225,802

④ The evaluation method used to measure the fair value of Jeju Channel Inc., which is classified as Level 3 financial asset measured at

FVOCI, is as follows:

(In thousands of Korean won)	Jeju channel Inc.
Fair value as of December 31, 2025	116,150
Valuation approach	Market approach
Measurement method	Using comparable entities
Price multiple index (applied multiple)	PBR (1.03), EV/SALES (0.84)
Correlation between unobservable input variables	If the market multiple increases, the fair value of the equity instrument will increase.
and fair value measurements

⑤ For the year ended December 31, 2025, there is no change in valuation techniques used to measure the fair value of financial instruments

classified as Level 3.

⑥ Changes in financial assets classified as Level 3 by the fair value hierarchy for each of the two years in the period ended December 31,

2025 are as follows:

(*1) For the year ended December 31, 2025, the Group disposed of KRW 496,128 thousand in the KB-SJ Tourism Venture Union.

(*2) For the year ended December 31, 2025, the Group acquired KRW 95 thousand in Other (Sapporo Hotel Ryokan Cooperative Association).

(*3) Including foreign exchange differences.

			2025
	Beginning	Purchase	Valuation gain (loss)	Others (*3)	Ending
(In thousands of Korean won)		(Sale)
Financial assets measured at FVPL (*1)	2,173,624	(496,128)	(451,694)	-	1,225,802
Financial assets measured at FVOCI (*2)	1,139,628	95	150	(11)	1,139,862
Total	3,313,252	(496,033)	(451,544)	(11)	2,365,664

23. Fair value (cont’d):

(*1) For the year ended December 31, 2024, the Group disposed of KRW 2,484,588 thousand in the KB-SJ Tourism Venture Union and KRW 413,669

thousand in the P&I Cultural Innovation Investment Union.

(*2) For the year ended December 31, 2024, the Group acquired KRW 90 thousand in Other (Japan Assist Cooperative Association).

(*3) Including foreign exchange differences.

⑦ Sensitivity analysis of fair value measurements classified as Level 3

The sensitivity analysis of financial instruments is based on changes in the value of the instruments resulting from fluctuations in unobservable

inputs using statistical techniques, and is presented separately as favorable and unfavorable changes.

The sensitivity of unlisted equity instruments is calculated by increasing or decreasing the key unobservable input, the fair value of net assets,

by 1% to derive changes in fair value. The results of the sensitivity analysis of financial instruments to changes in inputs are presented below.

24. Capital stock and other contributed capital:

(1)

As of December 31, 2025 and 2024, details of the capital stock of the Parent Company are as follows:

	Description	December 31, 2025	December 31, 2024
Type of shares		Common shares	Common shares
Authorized shares		20,000,000 shares	20,000,000 shares
Par value per share		W 500	W 500
Issued shares (*)		15,489,932 shares	16,039,185 shares
Common share amount		\ 8,019,593 thousand	\ 8,019,593 thousand

(*) Pursuant to a resolution of the Board of Directors on April 15, 2025, the Group canceled 549,253 treasury shares (common stock) acquired within the

scope of distributable retained earnings. As a result, the total number of issued shares decreased, while the share capital remained unchanged.

(2)

As of December 31, 2025 and 2024, details of the other contributed capital are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Additional paid-in capital	21,341,013	21,341,013
Treasury stock (*1)	(23,385,200)	(33,978,873)
Other capital surplus (*2)	5,561,555	5,561,764
Total	3,517,368	(7,076,096)

(*1) Pursuant to a resolution of the Board of Directors on April 15, 2025, the Group completed the cancellation of 549,253 treasury shares (common stock)

acquired within the scope of distributable retained earnings. The Group subsequently acquired 476,762 treasury shares (common stock) from December 3,

2025.

(*2) Other capital surplus mainly consists of the amount reclassificated from the stock option due to the expiration of the vesting period.

(3) The Group acquires its treasury shares directly in the market in order to enhance shareholder value. Treasury shares retained by the Group

as of December 31, 2025 and 2024 are as follows:

25. Other components of equity:

As of December 31, 2025 and 2024, other components of equity is composed of as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Impairment loss of financial assets measured at FVOCI	(217,383)	(217,499)
Gain on translation of foreign operations	3,748,516	3,962,681
Changes in equity under equity method	(81,118)	(73,860)
Total	3,450,015	3,671,322

			2024
	Beginning	Purchase	Valuation gain (loss)	Others (*3)	Ending
(In thousands of Korean won)		(Sale)
Financial assets measured at FVPL (*1)	3,606,339	(2,898,257)	1,465,542	-	2,173,624
Financial assets measured at FVOCI (*2)	1,184,258	90	(44,730)	10	1,139,628
Total	4,790,597	(2,898,167)	1,420,812	10	3,313,252

(In thousands of Korean won)	Favorable change	Unfavorable change
KB-SJ Tourism Venture Union	9,409	(9,409)
P&I Cultural Innovation Investment Union	2,222	(2,222)

		December 31, 2025			December 31, 2024
(In thousands of Korean won)	Shares	Acquisition cost	Book value	Shares	Acquisition cost	Book value
Common shares (Parent Company)	476,762 shares	23,385,200	23,385,200	549,253 shares	33,978,873	33,978,873

26. Retained earnings:

As of December 31, 2025 and 2024, retained earnings are composed of as follows:

(In thousands of Korean won)	Description	December 31, 2025	December 31, 2024
Legal reserves	Earned surplus reserve (*1)	4,009,796	4,009,796
Voluntary reserves	Reserve for business stabilization	15,265	15,265
	Earned surplus reserve (*2)	7,622,367	7,622,367
Unappropriated retained earnings	Unappropriated retained earnings	120,906,431	158,615,960
Total		132,553,859	170,263,388

(*1) The Commercial Act of the Republic of Korea requires the Parent Company to appropriate, as a legal reserve, an amount equal to a minimum of 10% of

cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends but may be

transferred to share capital or used to reduce accumulated deficit.

(*2) As the reserve is a reserve accumulated in excess of 50% of the capital stock, its disposal is not restricted and accordingly classified in voluntary reserves.

27. Operating revenue:

(1)

Details of operating revenue of the Group for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Revenue from contracts with customers:
Rendering of services
Travel agency	319,828,471	319,459,759
Airfare sales commission	4,699,196	4,400,294
Hotel operation	32,364,721	26,470,441
Bus service	19,865,157	18,326,338
Other service revenue	9,471,485	10,403,027
Subtotal	386,229,030	379,059,859
Sales of goods	126,404,125	172,336,727
Other revenue	74,252,596	65,155,257
Subtotal	586,885,751	616,551,843
Other source income:
Rental income from investment property	17,220	55,151
Total	586,902,971	616,606,994

(2)

Details of operating revenue categorized by timing of recognition for each of the two years in the period ended December 31, 2025 are

as follows:

Others:

Rental income from investment property

17,220

55,151

(3)

As of December 31, 2025 and 2024, details of receivables, contract assets and contract liabilities from contracts with customers are as

follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Receivables included in trade and other receivables	75,012,397	68,602,008
Contract assets:
Trade receivables (*)	3,393,338	3,929,481
Total contract assets	3,393,338	3,929,481
Contract liabilities:
Deferred revenue	3,010,940	1,678,192
Advances from customers	16,766,747	15,676,437
Total contract liabilities	19,777,687	17,354,629

(*) Presenting the amounts of contract assets incurring variable consideration.

(In thousands of Korean won)	2025	2024
Timing of transfer:
Transferred at a point in time	553,419,280	588,929,502
Transferred over time	33,466,471	27,622,341
Total	586,902,971	616,606,994

28. Expenses by Nature:

The classification of expenses for each of the two years in the period ended December 31, 2025 is as follows:

(In thousands of Korean won)	2025	2024
Merchandise used	125,846,242	172,852,881
Wages and salaries	123,654,927	117,097,022
Miscellaneous salaries	126,238	171,750
Post-employment benefits	9,089,318	8,438,885
Employee welfare	13,342,927	11,775,337
Travel	998,190	906,046
Communication	2,969,464	2,840,639
Taxes and dues	1,766,972	1,750,749
Insurance premium	3,155,415	3,090,697
Advertisement	32,028,576	31,522,136
(Reversal of) bad debt expenses	(2,459,969)	3,653,882
Depreciation of investment property	817	145,073
Depreciation	3,115,713	2,990,992
Amortization of intangible assets	4,062,387	8,572,472
Depreciation of right-of-use assets	17,491,298	15,858,386
Card service fees	29,292,377	29,681,569
Payment commission	43,254,151	38,939,653
Supplies	1,390,360	1,272,907
Printing	812,246	695,424
Book purchase	10,858	18,781
Rents	877,961	994,485
Per diem	1,062,485	891,811
Entertainment	829,941	768,067
Repairs	242,729	231,412
Vehicles maintenance	202,475	176,119
Education and training	198,899	205,457
Tour service fees	105,313,395	100,318,315
Miscellaneous expenses	1,917,963	1,381,422
Bus service cost	6,340,522	6,257,682
Hotel service cost	2,273,825	2,187,279
Others	67,394	662
Total	529,276,096	565,687,992

29. Finance income (expenses), gains (losses) on investments in associates and joint ventures and

other income (expenses):

(1)

Details of finance income and expenses for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	Description	2025	2024
	Interest income	7,148,339	8,152,324
Finance Income	Dividend income	181,981	758,730
	Gain on valuation of financial assets at FVPL	-	1,465,542
	Gain on disposal of financial assets at FVPL	103,470	123,331
	Total	7,433,790	10,499,927
	Interest expense	2,246,201	2,425,361
Finance Expenses	Impairment loss of financial assets at FVPL	451,694	-
	Loss on disposal of financial assets at FVPL	401,128	469,588
	Total	3,099,023	2,894,949

(2)

Details of gains (losses) on investments in associates and subsidiaries for each of the two years in the period ended December 31, 2025

are as follows:

(In thousands of Korean won)	2025	2024
Investment loss under equity method	(229,162)	(123,276)
Loss on disposal of investments in subsidiaries	-	(77,001)
Total	(229,162)	(200,277)

29. Finance income (expenses), gains (losses) on investments in associates and joint ventures and

other income (expenses) (cont’d):

(3)

Details of other income and expenses for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	Description	2025	2024
	Foreign exchange gain	5,501,820	3,819,622
	Gain on foreign currency translation	1,226,058	2,408,905
	Gain on disposal of property, plant and equipment	282,022	127,394
	Reversal of impairment loss on property, plant and equipment	133	-
Other income	Reversal of impairment loss on right-of-use assets	9,671,873	9,151,744
	Reversal of provision for restoration	109,726	-
	Gain on lease transaction	7,033	10,710
	Reversal of other bad debt expenses	-	(2,053,267)
	Miscellaneous gains	3,107,763	5,329,273
	Total	19,906,428	18,794,381
	Foreign exchange loss	4,298,769	2,808,414
	Loss on foreign currency translation	954,542	945,801
	Loss on disposal of property, plant and equipment	7,307	8,929
	Loss on scrap of property, plant and equipment	14,208	1,215
	Impairment loss on property, plant and equipment	42,853	52,122
	Loss on disposal of intangible assets	24	179,097
	Loss on scrap of intangible assets	-	225
Other expenses	Impairment loss on intangible assets	35,357	105,189
	Impairment loss on right-of-use assets	3,516,136	3,468,246
	Provision for restoration	1,181	11,195
	Loss on lease transaction	9,117	1,680
	Donations	180,429	133,658
	Other bad debt expenses	1,664,679	-
	Miscellaneous expenses	22,634,907	149,589
	Total	33,359,509	7,865,360

30. Financial instruments by category:

(1)

The carrying amounts of financial assets by category for each of the two years in the period ended December 31, 2025 are as follows.

(In thousands of Korean won)			December 31, 2025
Financial assets	Financial assets at	Financial assets at	Financial assets at	Others	Total
	FVPL	FVOCI	amortized cost
Cash and cash equivalents	-	-	81,675,283	-	81,675,283
Short-term financial instruments	-	-	196,723,042	-	196,723,042
Trade receivables	-	-	72,229,856	-	72,229,856
Other current receivables	-	-	9,156,555	-	9,156,555
Other non-current receivables	-	-	979,969	-	979,969
Financial assets at FVPL	1,225,802	-	-	-	1,225,802
Financial assets at FVOCI	-	1,139,862	-	-	1,139,862
Other current financial assets	-	-	10,045,376	-	10,045,376
Other non-current financial assets	-	-	9,989,226	-	9,989,226
Current finance lease receivables	-	-	-	785,218	785,218
Non-current finance lease receivables	-	-	-	17,725	17,725
Total	1,225,802	1,139,862	380,799,307	802,943	383,967,914

(In thousands of Korean won)			December 31, 2024
Financial assets	Financial assets at	Financial assets at	Financial assets at	Others	Total
	FVPL	FVOCI	amortized cost
Cash and cash equivalents	-	-	105,683,073	-	105,683,073
Short-term financial instruments	-	-	163,204,938	-	163,204,938
Trade receivables	-	-	62,665,361	-	62,665,361
Other current receivables	-	-	17,940,605	-	17,940,605
Other non-current receivables	-	-	1,207,866	-	1,207,866
Financial assets at FVPL	2,173,624	-	-	-	2,173,624
Financial assets at FVOCI	-	1,139,628	-	-	1,139,628
Other current financial assets	-	-	7,916,694	-	7,916,694
Other non-current financial assets	-	-	12,708,969	-	12,708,969
Current finance lease receivables	-	-	-	929,084	929,084
Non-current finance lease receivables	-	-	-	457,822	457,822
Total	2,173,624	1,139,628	371,327,506	1,386,906	376,027,664

30. Financial instruments by category (cont’d):

(2)

The carrying amounts of financial liabilities by category for each of the two years in the period ended December 31, 2025 are as

follows.

(In thousands of Korean won)		December 31, 2025
Financial liabilities	Financial liabilities at	Others	Total
	amortized cost
Trade payables	67,074,258	-	67,074,258
Other current payables (*)	49,972,801	-	49,972,801
Other non-current payables	1,027,744	-	1,027,744
Short-term borrowings	436,800	-	436,800
Current portion of long-term borrowings	630,412	-	630,412
Long-term borrowings	1,403,368	-	1,403,368
Other current financial liabilities	2,566,798	-	2,566,798
Other non-current financial liabilities	110,510	-	110,510
Current lease liabilities	-	17,116,311	17,116,311
Non-current lease liabilities	-	89,968,762	89,968,762
Total	123,222,691	107,085,073	230,307,764

(*) Compensation-related employee benefits recognized based on the timing of occurrence as of December 31, 2025 are included.

(In thousands of Korean won)		December 31, 2024
Financial liabilities	Financial liabilities at	Others	Total
	amortized cost
Trade payables	84,354,984	-	84,354,984
Other payables (*)	47,208,578	-	47,208,578
Short-term borrowings	4,207,520	-	4,207,520
Current portion of long-term borrowings	1,810,441	-	1,810,441
Long-term borrowings	3,745,133	-	3,745,133
Other current financial liabilities	2,567,352	-	2,567,352
Other non-current financial liabilities	55,440	-	55,440
Current lease liabilities	-	16,722,447	16,722,447
Non-current lease liabilities	-	96,161,437	96,161,437
Total	143,949,448	112,883,884	256,833,332

(*) Compensation-related employee benefits recognized based on the timing of occurrence as of December 31, 2024 are included.

(3)

Details of finance income (expense) from financial assets and liabilities by category for each of the two years in the period ended December

31, 2025 are as follows:

(In thousands of Korean won)	Description	2025		2024
Financial assets at amortized cost	Interest income		7,007,449		7,969,443
Finance lease receivables	Interest income		140,890		182,881
Financial assets at FVPL	Dividend income		167,000		758,730
	Gain on valuation		-		1,465,542
	Gain on disposal		103,470		123,331
Financial assets at FVOCI	Dividend income		14,981		-
Total			7,433,790		10,499,927
(In thousands of Korean won)	Description	2025		2024
Financial liabilities at amortized cost	Interest expense		102,045		193,935
Lease liabilities	Interest expense		2,144,156		2,231,426
Financial assets at FVPL	Impairment loss		451,694		-
	Loss on disposal		401,128		469,588
Total			3,099,023		2,894,949

(4)

The Group considers that, except for financial assets at FVPL and financial assets at FVOCI among the above financial assets and financial

liabilities, the acquisition cost or amortized cost of the remaining financial assets and financial liabilities approximates their fair value.

31. Income tax expense:

(1)

The components of income tax expense for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Current income tax expense	4,034,300	2,712,386
Adjustment to prior year’s income tax expense recognized in the current period	1,146	302,536
Changes in deferred income tax assets (liabilities) due to temporary differences	(6,642,047)	1,967,331
Changes due to tax loss carry forwards	3,463,246	(3,894,543)
Changes due to tax credit carry forwards	(235,327)	(419,319)
Deferred income tax directly recognized in equity	-	(2,476)
Others	(275,513)	113,896
Income tax expense (benefit)	345,805	779,811
Income tax expense (benefit) from continuing operations	345,805	422,890
Income tax expense from discontinued operations	-	356,921

(2)

The relationship between profit (loss) before income tax and income tax expense for each of the two years in the period ended December

31, 2025 is as follows:

(In thousands of Korean won)	2025	2024
Profit before income tax	48,437,478	99,859,164
Profit before income tax from continuing operations	48,279,399	69,252,724
Profit before income tax from discontinued operations	158,079	30,606,440
Tax expense based on the applicable tax rate	15,858,558	29,668,757
Adjustments
Non-taxable income	(699,006)	(4,660,236)
Expenses not deductible for tax purposes	377,513	1,487,912
Changes in unrecognized deferred income tax assets	(9,205,809)	(22,718,234)
Adjustments recognized in the current period for past income tax expenses	1,146	302,536
Others (*)	(5,986,597)	(3,300,924)
Subtotal	(15,512,753)	(28,888,946)
Income tax expense (benefit)	345,805	779,811
Income tax expense (benefit) from continuing operations	345,805	422,890
Income tax expense from discontinued operations	-	356,921
Effective tax rate	0.71%	0.78%

(*) They consist of direct foreign tax expenses, amounts subject to the applicable tax rate and foreign exchange differences.

(3)

Changes in deferred income tax assets (liabilities) for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)		2025
Description		Deferred tax assets (liabilities)
	Beginning	Increase/Decrease	Ending
Available-for-sale financial assets	(249,103)	162,711	(86,392)
Trade and other receivables	4,394,603	533,805	4,928,408
Unconfirmed expense	2,252,036	288,907	2,540,943
Financial lease receivables	(72,847)	(1,743)	(74,590)
Inventories	253,350	(102,909)	150,441
Other current assets	(19,242)	(15,779)	(35,021)
Investment property	14,373	561	14,934
Property, plant and equipment	(148,118)	379,030	230,912
Right-of-use assets	(1,737,878)	349,416	(1,388,462)
Intangible assets	309,823	(41,804)	268,019
Investments in subsidiaries and associates	16,935,121	11,201	16,946,322
Other non-current assets	36,798	(24,969)	11,829
Trade and other payables	597,184	351,746	948,930
Other financial liabilities (non-current)	146,846	(92,482)	54,364
Other current liabilities	142,729	1,041,207	1,183,936
Deferred revenue	309,694	284,875	594,569
Lease liabilities	1,903,675	(343,339)	1,560,336
Provisions	227,531	3,753,951	3,981,482
Other non-current liabilities	45,720	5,510	51,230
Others	244,828	(891)	243,937
Unconfirmed income	(770,373)	103,043	(667,330)
Deferred income tax assets (liabilities) due to temporary differences (A)	24,816,750	6,642,047	31,458,797
Deferred income tax assets (liabilities) due to tax loss carry forwards (B)	32,036,426	(3,463,246)	28,573,180
Deferred income tax assets (liabilities) due to tax credit carry forwards (C)	419,319	235,327	654,646
Deferred tax assets (liabilities) (A+B+C)	57,272,495	3,414,128	60,686,623

31. Income tax expense (cont’d):

(In thousands of Korean won)		2024
Description	Deferred tax assets (liabilities)
	Beginning	Increase/Decrease	Ending
Available-for-sale financial assets	(27,996)	(221,107)	(249,103)
Trade and other receivables	3,912,719	481,884	4,394,603
Unconfirmed expense	3,277,554	(1,025,518)	2,252,036
Financial lease receivables	(60,829)	(12,018)	(72,847)
Inventories	153,936	99,414	253,350
Other current assets	(38,720)	19,478	(19,242)
Investment property	14,474	(101)	14,373
Property, plant and equipment	(99,747)	(48,371)	(148,118)
Right-of-use assets	(2,669,551)	931,673	(1,737,878)
Intangible assets	507,126	(197,303)	309,823
Investments in subsidiaries and associates	17,960,225	(1,025,104)	16,935,121
Other non-current assets	22,857	13,941	36,798
Trade and other payables	458,003	139,181	597,184
Other financial liabilities (non-current)	82,118	64,728	146,846
Other current liabilities	171,045	(28,316)	142,729
Deferred revenue	497,987	(188,293)	309,694
Lease liabilities	2,875,041	(971,366)	1,903,675
Provisions	245,647	(18,116)	227,531
Other non-current liabilities	44,364	1,356	45,720
Others	285,138	(40,310)	244,828
Unconfirmed income	(827,310)	56,937	(770,373)
Deferred income tax assets (liabilities) due to temporary differences (A)	26,784,081	(1,967,331)	24,816,750
Deferred income tax assets (liabilities) due to tax loss carry forwards (B)	28,141,883	3,894,543	32,036,426
Deferred income tax assets (liabilities) due to tax credit carry forwards (C)	-	419,319	419,319
Deferred tax assets (liabilities) (A+B+C)	54,925,964	2,346,531	57,272,495

(4)	Details of the tax effect of temporary differences and others not recognized as deferred income tax assets (liabilities) as of December
31, 2025 and 2024 are as follows:
(In thousands of Korean won)	December 31, 2025	December 31, 2024
Tax loss carry forwards and others	16,485,472	26,148,890
Investments in subsidiaries and associates	3,900,311	3,442,703
Foreign tax credit (Expires in 2032) (*)	947,413	947,413
Tax credit for investments in venture businesses and others	2,080,965	1,599,060
Total	23,414,161	32,138,066

(*) The foreign tax credit may be carried forward for the next ten tax years.

(5)

Details of deferred income tax assets (liabilities) directly recognized in equity for each of the two years in the period ended December 31,

2025 are as follows:

(In thousands of Korean won)	2025		2024
< Deferred income tax assets (liabilities) directly recognized in equity >
Financial assets at FVOCI		-		(2,476)

32. Earnings per share:

(1)

Details of the calculation of basic earnings per common share for each of the two years in the period ended December 31, 2025 are as

follows:

Description		2025			2024
	Continuing	Discontinued	Total	Continuing	Discontinued	Total
	operations	operations		operations	operations
Income attributable to owners		\	\			\
	\ 31,753,713,406	142,474,366	31,896,187,772	\ 54,196,384,972	\ 27,263,415,914	81,459,800,886
of the Parent Company
Weighted average number of	15,469,096	15,469,096	15,469,096	15,489,932	15,489,932	15,489,932
common shares outstanding	shares	shares	shares	shares	shares	shares
Basic earnings per share	\	\	\	\	\	\
	2,053	9	2,062	3,499	1,760	5,259

32. Earnings per share (cont’d):

(2)

Changes in the weighted average number of common shares outstanding for each of the two years in the period ended December 31,

2025 are as follows:

			2025
Shares issued	Treasury shares	Shares outstanding	Period	Number of days	Day count
16,039,185 shares	549,253 shares	15,489,932 shares	Jan. 01, 2025 – Apr. 30, 2025	120	1,858,791,840
15,489,932 shares	0 shares	15,489,932 shares	May. 01, 2025 – Dec. 02, 2025	216	3,345,825,312
15,489,932 shares	476,762 shares	15,013,170 shares	Dec. 03, 2025 – Dec. 31, 2025	29	441,602,742
Total				365	5,646,219,894
Weighted average number of common shares outstanding					15,469,096 shares

			2024
Shares issued	Treasury shares	Shares outstanding	Period	Number of days	Day count
16,039,185 shares	549,253 shares	15,489,932 shares	Jan. 01, 2024 – Dec. 31, 2024	366	5,669,315,112
Total				366	5,669,315,112
Weighted average number of common shares outstanding					15,489,932 shares

(3)

The Parent Company does not have dilutive potential common shares, so diluted net earnings per share for common stock is the same

as basic net earnings per share for each of the two years in the period ended December 31, 2025

33. Related party transactions:

(1)

As of December 31, 2025, details of transactions with the Group’s related parties are as follows:

Name of the Company	Main business	Relationship
OK Tour Service Inc.	Travel agency	Associate
Dream Co., Ltd.	Operation of theme park	Associate
Mooncademy Inc.	Travel agency	Associate
HANATOUR EUROPE S.R.L	Travel agency	Associate
HANATOUR TD CO., LTD.	Travel agency	Associate

(2)

Details of major transactions with the related parties for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)

2025

Description	Operating income	Other income	Operating expense	Other expense
< Associates >
Dream Co., Ltd.	-	132,480	-	-
HANATOUR TD CO., LTD.	292	77,006	436,078	28,262
< Others >
Employees	-	-	-	15,316
Total	292	209,486	436,078	43,578

(3)

Details of significant fund transactions with the related parties for each of the two years in the period ended December 31, 2025 are as

follows:

(In thousands of Korean won)				2025
		Financing loan		Cash contribution
Relationship	Name of the Company	transactions
		Loans		Contribution
<Associates>	Dream Co., Ltd.		883,277		-
	Mooncademy Inc.		-		1,507,930
	HANATOUR TD CO., LTD.		1,341,130		125,832
Total			2,224,407		1,633,762

(In thousands of Korean won)		2024
Description	Other income	Operating expense		Other expense
< Associates >
Dream Co., Ltd.	95,484		-	-
HANATOUR TD CO., LTD.	16,592		54,600	8,173
< Others >
Employees	-		-	18,345
Total	112,076		54,600	26,518

33. Related party transactions (cont’d):

(In thousands of Korean won)				2024
Relationship	Name of the Company	Financing loan		Financing borrowing	Cash contribution
		transactions		transactions
		Loans		Repayment	Contribution
<Associate>	HANATOUR TD CO., LTD.		422,620	-		72,363
<Others>	Employees		-	535,786		-
Total			422,620	535,786		72,363

(4)

As of December 31, 2025 and 2024, details of outstanding balances with the related parties are follows:

(In thousands of Korean won)			December 31, 2025
Description	Receivables			Payables
	Loans	Others	Trade payables	Borrowings	Others
<Associates>
Dream Co., Ltd. (*1)	2,959,015	568,802	-	-	-
HANATOUR TD CO., LTD.(*2)	1,826,628	141,377	240,740	-	55,468
<Others>
Employees	-	-	-	436,800	69,918
Total	4,785,643	710,179	240,740	436,800	125,386

(*1) The allowances for doubtful accounts for loans and other receivables related to associates are recognized at KRW 2,959,015 thousand and KRW 568,802

thousand respectively.

(*2) An allowance for doubtful accounts amounting to KRW 1,306,312 thousand has been recognized for loans. Of this amount, KRW 163,352 thousand has

been recorded as an allowance for long-term loans due to unrecognized losses exceeding the carrying amount of investments in associates (see Note 16).

(In thousands of Korean won)			December 31, 2024
Description	Receivables			Payables
	Loans	Others	Trade payables	Borrowings	Others
<Associates>
Dream Co., Ltd.(*1)	2,075,738	436,322	-	-	-
HANATOUR TD CO., LTD.(*2)	421,529	55,019	177,669	-	9,100
<Others>
Employees	-	-	-	461,600	57,732
Total	2,497,267	491,341	177,669	461,600	66,832

(*1) The allowances for doubtful accounts for loans and other receivables related to associates are recognized at KRW 2,075,738 thousand and KRW 436,322

thousand respectively.

(*2) An allowance for doubtful accounts amounting to KRW 52,764 thousand, which represents unrecognized losses exceeding the carrying amount of

investments in associates, has been recognized for loans (see Note 16).

(5)

As of December 31, 2025, details of collaterals provided to the Group related to the loans to Dream Co., Ltd., a related party, are as

follows:

(In thousands of Korean won)
Provided to	Collateralized assets		Set amount	Amount received
		Currency	Amount	Currency	Amount
Dream Co., Ltd.	Land and others	KRW	4,400,000	KRW	2,959,015

(6)

Compensations for the Group’s major executives for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Short-term employee benefits	9,712,442	6,014,112
Post-employment benefits	892,380	744,755
Long-term employee benefits	-	4,518
Total	10,604,822	6,763,385

34. Collateralized assets:

As of December 31, 2025, details of assets provided as collateral for the Group to fulfil its contracts are as follows:

	Book value of	Set amount of collateral	Mortgagee	Reason for providing collateral
(In thousands of Korean won)	collateralized assets
Short-term financial instruments	69,535,150	70,512,155	Woori Bank and others	Performance of the contract and
Other non-current financial assets	317,504	317,504		others
Total	69,852,654	70,829,659

35. Commitments and contingencies:

(1)

As of December 31, 2025, the Group is involved in twelve lawsuits as a defendant. These lawsuits are for compensation for damages

amounting to KRW 2,717,997 thousand, and the outcome of such lawsuits cannot currently be determined. However, the management expects

the outcome of these lawsuits will not have a material impact on the Group’s financial position, results of operations, or cash flows.

(2)

The Group entered into a minimum customer admission guarantee agreement with Dream Co., Ltd., an associate. According to this

agreement, if the minimum number of customers is not achieved during the 10 years from February 14, 2020, the Group is committed to

provide a funding supplement by lending Dream Co., Ltd. an amount calculated by multiplying the shortfall in the number of customers

by the unit price of admission tickets. As of the end of the current period, the Group has recognized KRW 18,699,633 thousand, the

estimated amount to be paid in the future under this funding supplement agreement, as other provisions (see Note 20).

(3)

There are no payment guarantees provided to third parties other than related parties as of December 31, 2025.

(4)

Payment guarantees provided by third parties other than related parties as of December 31, 2025 are as follows:

(In thousands of Korean won, in USD, in EUR, in CHF, in JPY)

36. Segment information:

(1) The Group has the following segments: travel, hotel and others. The travel segment is engaged in the business of operating travel programs

and related services. The hotel segment operates hotels. Others include transportation services, duty-free shops and other activities.

(2) Operating revenue and income by the Group’s reportable segments for each of the two years in the period ended December 31, 2025 are

as follows:

				2025
	Travel	Hotel	Others		Discontinued	Consolidation	Total for
(In thousands of Korean won)					operation	adjustment	the Group
Operating revenue	567,596,711	32,424,136	21,288,422		-	(34,406,298)	586,902,971
Operating expense	521,977,654	24,078,175	16,558,717		(37,898)	(33,300,552)	529,276,096
Operating profit	45,619,057	8,345,961	4,729,705		37,898	(1,105,746)	57,626,875
				2024
	Travel	Hotel	Others		Discontinued	Consolidation	Total for
(In thousands of Korean won)					operation	adjustment	the Group
Operating revenue	604,834,661	26,527,762	19,571,564		-	(34,326,993)	616,606,994
Operating expense	563,540,965	20,487,216	15,648,045		(5,995)	(33,982,239)	565,687,992
Operating profit	41,293,696	6,040,546	3,923,519		5,995	(344,754)	50,919,002

Provided by		Limit amount		Available amount	Details
	Currency	Amount	Currency	Amount
			USD	5,452,000
	USD	8,342,000	EUR	190,000
Hana Bank			CHF	185,000
			JPY	1,500,000
	KRW	1,196,500	KRW	1,196,500
Woori Bank	KRW	55,320,000	KRW	53,953,000	Performance guarantee and
Seoul Guarantee Insurance Company	KRW	17,791,812	KRW	17,022,627	others
Korea Tourism Association	KRW	3,960,000	KRW	3,960,000
Dazayo Co., Ltd.	KRW	249,040	KRW	249,040
Credit Guarantee Corporation of Tokyo	JPY	360,000,000	JPY	183,814,000
Credit Guarantee Corporation of Osaka	JPY	120,000,000	JPY	37,820,000
Mizuho Bank, Ltd	JPY	5,000,000	JPY	5,000,000

36. Segment information (cont’d):

(3) The total assets and liabilities by the Group’s reportable segments as of December 31, 2025 and 2024 are as follows:

(4) Details of the Group’s revenue and performance by geography for each of the two years in the period ended December 31, 2025 are as

follows:

			2025
			Discontinued		Consolidated
	Korea	Asia	Others			Total for the group
(In thousands of Korean won)			operations		adjustment
Operating revenue	534,291,247	83,669,551	3,348,471	-	(34,406,298)	586,902,971
Operating expense	497,966,611	61,982,321	2,665,614	(37,898)	(33,300,552)	529,276,096
Operating profit	36,324,636	21,687,230	682,857	37,898	(1,105,746)	57,626,875
Non-current assets	115,321,208	109,508,786	990,799	-	(36,532,416)	189,288,377
			2024
			Discontinued		Consolidated
	Korea	Asia	Others			Total for the group
(In thousands of Korean won)			operations		adjustment
Operating revenue	573,568,922	74,949,880	2,415,185	-	(34,326,993)	616,606,994
Operating expense	542,416,386	55,244,605	2,015,235	(5,995)	(33,982,239)	565,687,992
Operating profit	31,152,536	19,705,275	399,950	5,995	(344,754)	50,919,002
Non-current assets	119,742,738	103,667,466	153,338	-	(35,148,648)	188,414,894

(5) There is no single customer from whom the revenue accounts for more than 10% of the Group’s operating revenue for each of the two

years in the period ended December 31, 2025.

			December 31, 2025
(In thousands of Korean won)	Travel	Hotel	Others	Consolidated adjustment	Total for the group
Assets	597,361,926	87,826,080	28,571,979	(56,228,380)	657,531,605
Liabilities	403,351,760	106,832,393	22,640,035	(42,415,676)	490,408,512
			December 31, 2024
(In thousands of Korean won)	Travel	Hotel	Others	Consolidated adjustment	Total for the group
Assets	616,725,644	86,174,427	21,876,589	(55,987,157)	668,789,503
Liabilities	398,694,894	120,630,771	23,338,543	(54,411,692)	488,252,516

37. Statements of cash flows:

(1) Cash and cash equivalents in the consolidated statement of cash flows and cash and cash equivalents in the consolidated statement of

financial position are the same.

(2) Details of adjustments to income and expenses for cash flows from operating activities for each of the two years in the period ended

December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Wages and salaries	823,868	784,434
Advertisement	377,087	818,424
(Reversal of) bad debt expense	(2,463,480)	3,655,227
Depreciation of investment property	817	145,073
Depreciation	3,115,713	2,990,992
Amortization of intangible assets	4,062,387	8,572,472
Depreciation of right-of-use assets	17,491,298	15,858,386
Interest expenses	2,246,201	2,425,361
Miscellaneous expenses	826,493	-
Loss (reversal) on valuation of inventories	(557,882)	516,378
Loss on valuation of financial assets at FVPL	451,694	-
Loss on disposal of financial assets at FVPL	401,128	469,588
Investment loss under equity method	229,162	123,276
Loss on disposal of investments in subsidiaries	-	77,001
Losses on foreign currency translation	958,107	945,722
Loss on disposal of property, plant and equipment	7,307	8,929
Loss on scrap of property, plant and equipment	14,208	1,215
Impairment loss on property, plant and equipment	42,853	52,122
Loss on disposal of intangible assets	24	179,097
Loss on scrap of intangible asset	-	225
Impairment loss on intangible assets	35,357	105,189
Impairment loss on right-of-use asset	3,516,136	3,468,246
Provision for restoration	1,181	11,195
Loss on lease transaction	9,117	1,680
Other bad debt expenses	1,664,679	2,053,267
Miscellaneous losses	22,495,815	95,139
Income tax expense	345,805	779,811
Deferred revenue	3,423,436	1,485,779
Interest income	(7,148,492)	(8,152,330)
Dividend income	(181,981)	(758,730)
Gain on valuation of financial assets at FVPL	-	(1,465,542)
Gain on disposal of financial assets at FVPL	(103,470)	(123,331)
Gains on foreign currency translation	(1,226,058)	(2,411,815)
Gain on disposal of property, plant, and equipment	(282,022)	(127,394)
Reversal of impairment loss on property, plant and equipment	(133)	-
Reversal of impairment loss on right-of-use asset	(9,671,873)	(9,151,744)
Reversal of provision for restoration	(109,726)	-
Gain on lease transaction	(7,033)	(10,710)
Miscellaneous gains	(201,144)	(30,785,963)
Total	40,586,579	(7,363,331)

37. Statements of cash flows (cont’d):

(3) Changes in assets and liabilities arising from operating activities for each of the two years in the period ended December 31, 2025 are

as follows:

(In thousands of Korean won)	2025	2024
Increase in trade receivables	(8,390,946)	(6,138,104)
Decrease (increase) in other receivables	9,715,622	(331,759)
Decrease (increase) in inventories	24,466,864	(11,410,331)
Decrease (increase) in advance payments	887,957	(10,111,614)
Increase in other assets	(293,363)	(1,823,589)
Increase in deposits received for travel	2,042,447	33,238,632
Increase (decrease) in trade payables	(16,647,273)	1,707,846
Decrease in other payables	(205,010)	(5,740,884)
Increase (decrease) in other financial liabilities	(13,920)	7,030
Decrease in provisions	(1,095,818)	(1,691,868)
Decrease in other liabilities	(1,408,417)	(2,196,541)
Increase (decrease) in advances received	1,102,913	(1,976,425)
Decrease in provision for long-term employee benefit obligations	(135,746)	(115,500)
Total	10,025,310	(6,583,107)

(4) Significant investing and financing activities not involving the use of cash and cash equivalents for each of the two years in the period

ended December 31, 2025 are as follows:

(5) Changes in liabilities from financing activities for each of the two years in the period ended December 31, 2025 are as follows:

(*) Including KRW 184,334 thousand of accounts payable related to the repayment of the lease liabilities for the year ended December 31, 2025.

(*) Inclding KRW 186,107 thousand of accounts payable related to the repayment of lease liabilities for the year ended December 31, 2024.

(In thousands of Korean won)	2025	2024
Reclassification of intangible assets in process of acquisition to	735,487	470,939
software
Accrued payables related to acquisition of intangible assets	2,400,789	337,269
Reclassification to current portion of financial lease liabilities	2,132,152	2,240,383
Increase in financial lease receivables	1,692,055	1,670,165
Reclassification to current portion of lease liabilities	18,316,926	16,678,180
Increase in lease liabilities	15,413,529	7,706,661
Reclassification to current portion of long-term borrowings	1,963,781	1,665,234
Gain on retirement of treasury shares	33,978,873	-
Accrued payables related to acquisition of treasury shares	1,563,341	-

					2025
		Net cash flows from			Non-cash transactions
	Beginning				Effects of exchange rate	Ending
		financing activities	Acquisition		Transfer
(In thousands of Korean won)					changes and others (*)
Short-term borrowings	4,207,520	(3,803,160)	-	-	32,440	436,800
Current portion of long-term	1,810,441	(2,894,357)	-	1,963,781	(249,453)	630,412
borrowings
Long-term borrowings	3,745,133	(638,836)	-	(1,963,781)	260,852	1,403,368
Lease liabilities (*)	112,883,884	(19,170,666)	15,413,529	-	(2,041,674)	107,085,073
Leasehold deposits received	2,123,419	116,520	-	-	172	2,240,111
Accrued dividends	53,062	(37,460,262)	-	37,498,705	(82,683)	8,822
Total	124,823,459	(63,850,761)	15,413,529	37,498,705	(2,080,346)	111,804,586

				2024
	Beginning	Net cash flows from		Non-cash transactions	Effects of exchange rate	Ending
		financing activities	Acquisition	Transfer
(In thousands of Korean won)					changes and others (*)
Short-term borrowings	8,682,599	(4,563,159)	-	-	88,080	4,207,520
Current portion of long-term	1,803,197	(1,703,517)	-	1,665,234	45,527	1,810,441
borrowings
Long-term borrowings	5,337,856	-	-	(1,665,234)	72,511	3,745,133
Lease liabilities (*)	121,313,299	(18,647,571)	7,311,682	-	2,906,474	112,883,884
Leasehold deposits received	2,028,099	94,884	-	-	436	2,123,419
Accrued dividends	52,988	(78,661,368)	-	78,661,305	137	53,062
Total	139,218,038	(103,480,731)	7,311,682	78,661,305	3,113,165	124,823,459

38. Risk management:

(1) Capital risk management

The Group manages its capital to ensure that it is able to continue as a going concern while maximizing shareholder value and maintaining

an optimal capital structure. The overall capital risk management policy of the Group is unchanged from the prior period.

The Group is not subject to regulatory capital constraints, and it uses its shareholders’ equity as an index for capital management. It also uses

the debt-to-equity ratio, calculated by dividing total liabilities by total equity, as a management indicator; however, as liabilities tend to

increase temporarily due to a rise in deposits received for travel when travel demand increases, the ratio is managed only as a supplementary

reference indicator.

The liability to equity ratio and net borrowing ratio of the Group as of December 31, 2025 and 2024 are as follows:

(In thousands of Korean won)	December 31, 2025	December 31, 2024
Liabilities (A)	490,408,512	488,252,516
Equity (B)	167,123,093	180,536,988
Deposit (C)	278,187,888	268,647,927
Borrowings (D)	2,470,580	9,763,094
Liability to equity ratio (A/B)	293.44%	270.44%
Net borrowing ratio ((D-C)/B)	(-)164.98%	(-)143.40%

(2) Financial risk management

Purpose of financial risk management

The Group is exposed to various financial risks, such as market risk (foreign exchange risk, interest rate risk, credit risk, and liquidity risk

related to financial instruments. The purpose of the risk management of the Group is to identify potential risks related to financial performance

and reduce, eliminate, and hedge those risks to a degree acceptable to the Group. The overall financial risk management policy of the Group

is the same as in the prior period. The Group monitors and manages the financial risks relating to the operations of the Group through internal

risk reports that analyse exposures by degree and magnitude of the risks.

Credit risk

Credit risk occurs in normal transactions and investment activities and occurs when the customer or business partner fails to comply with the

obligations under contract conditions. To manage these credit risks, the Group recommends that customers deposit travel expenses into virtual

accounts. To manage the counterparty’s credit risks, the Group decides credit transaction limits based on the evaluation of business partners

and customer credit through information obtained from the credit bureau and its disclosed financial position. For companies with a credit rating

below a certain level, credit is covered by secured transactions or an allowance for a potential amount deemed not recoverable in the future. In

transactions with affiliates, such as credit card companies, credit is provided until the deposit date, so to manage these credit risks, the Group

makes transactions with reputable financial institutions.

For banks and financial institutions, the Group is making transactions with reputable financial institutions, such as Hana Bank to minimize

its credit risk.

The maximum amount of financial assets exposed to credit risk as of December 31, 2025 is as follows (the value of collaterals acquired and the effect

of credit enhancement are not considered):

(In thousands of Korean won)	Book value	Maximum exposure amount
Cash equivalents	81,458,728	81,458,728
Short-term financial instruments	196,723,042	196,723,042
Trade receivables	72,229,856	72,229,856
Other receivables	10,136,524	10,136,524
Finance lease receivables	802,943	802,943
Other financial assets	20,034,602	20,034,602

38. Risk management (cont’d):

The information on expected credit losses and credit risk exposure for accounts receivable and other receivables, as well as the details of collectively

and individually assessed receivables as of December 31, 2025 is as follows:

	Weighted average		Total book value	Loss allowance (*)
(In thousands of Korean won)	default rate (%)
Collectively assessed receivables
Less than 90 days		0.16	52,879,768	(84,291)
90–179 days		7.13	2,058,242	(146,690)
180–269 days		25.79	234,825	(60,554)
270–364 days		50.57	34,251	(17,321)
Over 365 days		100.00	6,815,740	(6,815,740)
Subtotal			62,022,826	(7,124,596)
Individually assessed receivables			38,182,395	(10,550,893)
Total			100,205,221	(17,675,489)

(*) For the investments in HANATOUR TD CO., LTD. an associate, the share of loss of associates under equity method amounting to KRW 163,352

thousand, which exceeded the carrying amount of the investments in the associate, was recognized as loss allowance for long-term loans (see Note 16).

Liquidity risk

The Group has established an appropriate liquidity risk management framework to manage the Group’s short, medium and long-term funding

and liquidity management requirements, and the Group consistently evaluates and reviews the budget and actual cash expenditures. The

Group manages liquidity risk by maintaining a large portion of its investment in liquid financial instruments with low risk.

The following table presents a maturity analysis for financial liabilities:

			Nominal cash flows			Book value
(In thousands of Korean won)	Within 1 year	1 to 2 years	Over 2 years		Total
Trade payables	67,074,258		-	-	67,074,258	67,074,258
Other payables	49,972,801		1,027,744	-	51,000,545	51,000,545
Borrowings	1,086,428		554,752	868,539	2,509,719	2,470,580
Lease liabilities	17,506,469		10,093,209	90,323,709	117,923,387	107,085,073
Other financial liabilities	2,566,798		97,510	13,000	2,677,308	2,677,308

Undiscounted nominal cash flow calculations have been used for the above financial liabilities, and these liabilities include the amounts of

interest payable. The obligations denominated in a foreign currency represent a variable amount, applying the exchange rate on the reporting

date.

Foreign currency risk

The Group is mainly exposed to foreign exchange risks on the Chinese Yuan Renminbi, US Dollar, Euro, Japanese Yen, Indonesian

Rupiah and others. in relation to the payment of travel expenses abroad.

The Group contracts the payment terms in KRW, a functional currency, as much as possible, and in foreign currency payments, it manages

the foreign exchange risks by minimizing assets and liabilities exposed to foreign exchange rates by shortening the payment period as much

as possible.

As of December 31, 2025, details of foreign currency assets and liabilities that are exposed to

foreign exchange risks

are as follows:

(In thousands of Korean won)	Monetary assets	Monetary liabilities
KRW(*)	1,486,305	-
USD	9,789,505	11,723,716
EUR	606,630	1,918,110
JPY	72,636,388	58,324,987
CNY	3,018,796	-
HKD	86,805	-
TWD	210,093	92,508
GBP	363,402	-
AUD	557,098	-
CAD	232,232	-
SGD	130,304	-
THB	1,888,619	-
CHF	55,662	79,872
IDR	1,540,672	-
MYR	-	1,762
NZD	590	-

(*) Including foreign exchange risk effect on deposits in Korean won and trade receivables and others from overseas subsidiaries.

38. Risk management (cont’d):

As of December 31, 2025, the sensitivity according to the effects of exchange rate changes on foreign currency assets and liabilities that are

exposed to foreign exchange risks is as follows:

(In thousands of Korean won)	5% increase	5% decrease
KRW	74,315	(74,315)
USD	(96,711)	96,711
EUR	(65,574)	65,574
JPY	715,570	(715,570)
CNY	150,940	(150,940)
HKD	4,340	(4,340)
TWD	5,879	(5,879)
GBP	18,170	(18,170)
AUD	27,855	(27,855)
CAD	11,612	(11,612)
SGD	6,515	(6,515)
THB	94,431	(94,431)
CHF	(1,211)	1,211
IDR	77,034	(77,034)
MYR	(88)	88
NZD	30	(30)

Meanwhile, as of December 31, 2025, the above sensitivity analysis is based on monetary assets and liabilities denominated in major foreign

currencies other than functional currency. The impact of sensitivity is based on the impact of profit (loss) before tax.

Interest rate risk

The Group is exposed to interest rate risk through borrowing funds at fixed and variable interest rates. The Group maintains an appropriate

balance of fixed and variable interest rate borrowings to manage interest rate risk. Hedging activities are regularly assessed with appropriate

adjustments to interest rate status and defined risk tendencies, and the optimal hedging strategy is applied by preventing changes in interest

expenses through different interest rate cycles.

The sensitivity analysis was conducted based on the exposure of interest rate risks to financial assets and financial liabilities as of the end of

the reporting period, assuming that KRW 1,687 million borrowed from Sumitomo Mitsui Banking Corporation, Kiraboshi Bank, Ltd., and

others remains as of the end of the reporting period.

When interest rate risk is internally reported to major management, a 50-basis point (bp) increase or decrease is being used, which represents

management's assessment of reasonable possible changes in interest rates. If other variables remain constant and interest rates are 50 basis

points higher or lower than they are now, the Group's annual profit decreases or increases by KRW 5,549 thousand, primarily due to the risk

of interest rate changes in variable interest rate borrowings.

39. Discontinued operations:

The Group decided to discontinue the operations of SM duty free Co., Ltd. due to sluggish sales and the burden of rental expenses caused

by COVID-19 prior to the year ended December 31, 2024.

(1)

As of December 31, 2025, details of discontinued operations are as follows:

Description	SM duty free Co., Ltd.
Business sector	Duty free shop
Major operating activities	Sale of duty-free goods
Method of discontinuance of operation	Liquidated

39. Discontinued operations (cont’d):

(2) Details of profits and losses from discontinued operations for each of the two years in the period ended December 31, 2025 are as

follows:

(In thousands of Korean won)	2025	2024
Operating revenue	-	-
Operating expense	37,898	5,995
Operating loss	(37,898)	(5,995)
Non-operating profit and loss	195,977	30,612,435
Profit before income tax	158,079	30,606,440
Income tax expense	-	356,921
Profit from discontinued operations	158,079	30,249,519
Profit for the year attributable to the owners of the Parent Company	142,474	27,263,416
Profit for the year attributable to non-controlling interests	15,605	2,986,103

(3) Cash flows from the discontinued operations for each of the two years in the period ended December 31, 2025 are as follows:

(In thousands of Korean won)	2025	2024
Net cash flows from operating activities	(77,785)	188,345
Net cash flows from investing activities	-	-
Net cash flows from financing activities	-	-
Effects of exchange rate changes on cash and cash equivalents	(96)	494
Net cash flows	(77,881)	188,839