SK hynix (SKHY)

6-K 1 d147827d6k.htm FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE MONTH OF AUGUST 2026 Commission File Number: 001-43391 SK hynix Inc. (Translation of registrant s name into English) 2091, Gyeongchung-daero Bubal-eup, Icheon-si Gyeonggi-do 17336, Korea (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F SEMI-ANNUAL BUSINESS REPORT (From January 1, 2026 to June 30, 2026) THIS IS A SUMMARY OF THE SEMI-ANNUAL BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN WHICH IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION. IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS. ALL REFERENCES TO THE COMPANY SHALL MEAN SK HYNIX INC. AND, UNLESS THE CONTEXT OTHERWISE REQUIRES, ITS CONSOLIDATED SUBSIDIARIES. REFERENCES TO SK HYNIX SHALL MEAN SK HYNIX INC., BUT SHALL NOT INCLUDE ITS CONSOLIDATED SUBSIDIARIES. UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA ( K-IFRS ) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. THE COMPANY HAS MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES. 2 I. COMPANY OVERVIEW 1. Company Overview The following table sets forth a summary of the Company s consolidated subsidiaries: (As of June 30, 2026) Classification Number of consolidated subsidiaries Number of material subsidiaries* Beginning of the reporting period Additions Subtractions End of the reporting period Listed Companies Unlisted Companies 53 4 57 28 Total 53 4 57 28 * Material Subsidiary means a subsidiary that, as of the end of the previous fiscal year, had (i) total assets of Won 75 billion or more or (ii) total assets equal to 10% or more of the Company s total assets. For a list of the Company s subsidiaries as of June 30, 2026, see Note 1(2) of the notes to the Company s interim consolidated financial statements attached hereto. Changes in the Company s consolidated subsidiaries during the six months ended June 30, 2026 are set forth below. Change Name Remarks Additions Solidigm Inc. Newly established Solidigm NAND product Solutions (Dalian) Co., Ltd. Newly established SHIFTIX Holdings LLC Newly established SHIFTIX1 LLC Newly established Exclusions A. Corporate Legal Business Name: SK hynix Inc. B. Date of Incorporation: The Company was established as Kukdo Construction Co., Ltd. in October 1949 and changed its name to Hyundai Electronics Industries Co., Ltd. in February 1983. Subsequently, the Company changed its name to Hynix Semiconductor Inc. in March 2001 and to SK hynix Inc. in March 2012. The shares issued by the Company are listed on the Korea Exchange and traded on the securities market under the ticker code 000660. C. Address, Telephone Number and Website of Headquarters (1) Address: 2091, Gyeongchung-daero, Bubal-eup, Icheon-si, Gyeonggi-do, Korea (2) Telephone: +82-31-5185-4114 (3) Website: https://www.skhynix.com D. Major Businesses Currently, the Company mainly manufactures memory semiconductor products such as DRAM, NAND flash and multi-chip package ( MCP ) products. 3 E. Credit Ratings As of June 30, 2026, the Company s credit ratings were as follows: Category Credit rating entity Current credit rating Credit rating date Domestic Korea Ratings AA+ June 16, 2026 Korea Investors Service, Inc. AA+ March 11, 2026 NICE Investors Service, Co., Ltd. AA+ March 5, 2026 International Moody s Investors Service A3 August 3, 2026 S&P Global Ratings BBB+ February 5, 2026 Fitch Ratings BBB+ April 30, 2026 (1) Credit ratings for the past three fiscal years a. Domestic credit ratings Credit rating date Subject of rating Credit rating Credit rating entity Credit rating range Rating classification March 26, 2024 Corporate bond AA Korea Ratings AAA ~ D Regular rating March 26, 2024 Commercial paper ( CP ) A1 Korea Ratings A1 ~ D Current rating March 26, 2024 Corporate bond AA Korea Investors Service, Inc. AAA ~ D Regular rating March 26, 2024 CP A1 Korea Investors Service, Inc. A1 ~ D Current rating March 27, 2024 Corporate bond AA NICE Investors Service, Co., Ltd. AAA ~ D Regular rating March 27, 2024 CP A1 NICE Investors Service, Co., Ltd. A1 ~ D Current rating December 11, 2024 CP A1 Korea Ratings A1 ~ D Regular rating December 20, 2024 CP A1 Korea Investors Service, Inc. A1 ~ D Regular rating December 20, 2024 CP A1 NICE Investors Service, Co., Ltd. A1 ~ D Regular rating January 7, 2025 Corporate bond AA Korea Ratings AAA ~ D Current rating January 7, 2025 Corporate bond AA Korea Investors Service, Inc. AAA ~ D Current rating January 7, 2025 Corporate bond AA NICE Investors Service, Co., Ltd. AAA ~ D Current rating June 25, 2025 Corporate bond AA Korea Investors Service, Inc. AAA ~ D Regular rating June 25, 2025 CP A1 Korea Investors Service, Inc. A1 ~ D Current rating June 26, 2025 Corporate bond AA NICE Investors Service, Co., Ltd. AAA ~ D Regular rating June 26, 2025 CP A1 NICE Investors Service, Co., Ltd. A1 ~ D Current rating October 1, 2025 Corporate bond AA Korea Ratings AAA ~ D Rating update October 1, 2025 CP A1 Korea Ratings A1 ~ D Regular rating October 29, 2025 Corporate bond AA Korea Investors Service, Inc. AAA ~ D Rating update October 29, 2025 CP A1 Korea Investors Service, Inc. A1 ~ D Regular rating October 30, 2025 Corporate bond AA NICE Investors Service, Co., Ltd. AAA ~ D Rating update October 30, 2025 CP A1 NICE Investors Service, Co., Ltd. A1 ~ D Regular rating January 29, 2026 Corporate bond AA+ Korea Ratings AAA ~ D Rating update March 5, 2026 Corporate bond AA+ NICE Investors Service, Co., Ltd. AAA ~ D Regular rating March 11, 2026 Corporate bond AA+ Korea Investors Service, Inc. AAA ~ D Regular rating May 14, 2026 CP A1 Korea Investors Service, Inc. A1 ~ D Current rating May 28, 2026 CP A1 NICE Investors Service, Co., Ltd. A1 ~ D Current rating June 16, 2026 Corporate bond AA+ Korea Ratings AAA ~ D Regular rating June 16, 2026 CP A1 Korea Ratings A1 ~ D Current rating 4 b. International credit ratings Credit rating date Subject of rating Credit rating Credit rating entity Credit rating range Rating classification March 6, 2024 Issuer BBB Fitch Ratings AAA ~ D Rating update August 7, 2024 Issuer BBB S&P Global Ratings AAA ~ D Rating update August 14, 2024 Issuer Baa2 Moody s Investors Service Aaa ~ C Rating update August 30, 2024 Issuer BBB Fitch Ratings AAA ~ D Rating update November 19, 2024 Issuer BBB S&P Global Ratings AAA ~ D Rating update July 31, 2025 Issuer Baa2 Moody s Investors Service Aaa ~ C Rating update August 25, 2025 Issuer BBB Fitch Ratings AAA ~ D Rating update August 25, 2025 Issuer BBB S&P Global Ratings AAA ~ D Rating update November 17, 2025 Issuer BBB S&P Global Ratings AAA ~ D Rating update December 12, 2025 Issuer Baa1 Moody s Investors Service Aaa ~ C Rating update February 5, 2026 Issuer BBB+ S&P Global Ratings AAA ~ D Rating update April 30, 2026 Issuer BBB+ Fitch Ratings AAA ~ D Rating update August 3, 2026 Issuer A3 Moody s Investors Service Aaa ~ C Rating update F. Listing (registration or designation) of Company s shares and special listing status Listing (registration or designation) of stock Date of listing (registration or designation) Special listing KRX KOSPI Market of the Korea Exchange December 26, 1996 Not applicable 2. Company History A. Location of Headquarters Date Address Remarks 2091, Gyeongchung-daero, Bubal-eup, Icheon-si, Gyeonggi-do No change during the reporting period B. Significant Changes in Management (1) Changes in directors during the reporting period Date of change Shareholder meeting classification Appointment Term expiration or dismissal Newly appointed Re-elected March 30, 2022 General Meeting of Shareholders Nohjung Kwak, Jong-Won Noh Yung-Ku Ha Seok-Hee Lee, Jong-Hoon Oh March 29, 2023 General Meeting of Shareholders Zeong Won Kim, Deog Kyoon Jeong, Sung-Ha Park Ae-Ra Han Chang-Hwan Shin March 27, 2024 General Meeting of Shareholders Hyun Ahn, Hyun Chul Sohn, Donghoon Yang, Yong Ho Jang Jung-Ho Park, Ho-Keun Song, Hyun-Jae Cho March 27, 2025 General Meeting of Shareholders Myung-Jin Han Nohjung Kwak Yung-Ku Ha March 25, 2026 General Meeting of Shareholders Seon Yong Cha Gahng Gook Choi Seung Beom Koh Jung Kyu Kim Zeong Won Kim Deog Kyoon Jeong Hyun Ahn Ae-Ra Han * Executive director Jong-Won Noh resigned effective March 28, 2023, outside director Tae-Hwa Yoon resigned effective March 22, 2024, non-executive director Sung-Ha Park resigned effective March 26, 2025, and executive director Hyun Ahn and non-executive director Myung-Jin Han resigned effective March 24, 2026. 5 (2) Changes in the representative director during the reporting period Date of change Meeting classification Appointment/Reappointment Term expiration/dismissal/ resignation March 30, 2021 Board of Directors Meeting Jung-Ho Park March 30, 2022 Board of Directors Meeting Nohjung Kwak Seok-Hee Lee (resignation) March 27, 2024 Jung-Ho Park (term expiration) * As of the date of this report, the Company s representative director is Nohjung Kwak. C. Changes in Company Name Date Description February 1983 Changed company name to Hyundai Electronics Industries Co., Ltd. March 2001 Changed company name to Hynix Semiconductor Inc. March 2012 Changed company name to SK hynix Inc. D. Mergers, Acquisitions and Restructuring Date Description October 2021 Resolved to acquire 100% equity interest in Key Foundry Co., Ltd. from Magnus Semiconductor LLC December 2021 Completed Phase 1 acquisition of Intel Corporation s non-volatile memory solutions group ( NSG ) NAND business division, excluding the Optane business unit August 2022 Completed acquisition of 100% equity interest in Key Foundry Co., Ltd. from Magnus Semiconductor LLC March 2025 Completed final acquisition of Intel Corporation s NSG NAND business division, excluding the Optane business unit E. Changes in Business Type or Principal Business Currently, the Company mainly manufactures memory semiconductor products such as DRAM, NAND flash and MCP products. Since 2007, the Company has re-entered the complementary metal oxide semiconductor ( CMOS ) image sensor ( CIS ) business in the system large-scale integration ( System LSI ) sector, and has also been pursuing a foundry services business. The CIS business division, which was launched in 2007, has been transitioned to the artificial intelligence ( AI ) memory sector in March 2025. See II. Business for more detailed information by business division. 6 3. Total Number of Shares A. Total Number of Shares (As of June 30, 2026) (Unit: in shares and percentages) Classification Share type Remarks Common shares Preferred shares Total I. Total number of authorized shares 9,000,000,000 9,000,000,000 II. Total number of shares issued to date 5,721,980,209 5,721,980,209 III. Total number of shares cancelled to date 5,009,277,844 5,009,277,844 a. Reduction of capital 4,990,449,799 4,990,449,799 - March 31, 2003: Share consolidation (21:1) b. Retirement of shares 18,828,045 18,828,045 - March 31, 2000: Cancellation of repurchased shares - February 9, 2026: Cancellation of repurchased shares c. Redemption of redeemable shares d. Others IV. Total number of issued shares (II-III) 712,702,365 712,702,365 V. Number of treasury shares 1,626,865 1,626,865 - April 22, 2014: Share exchange - July 23, 2015 - October 1, 2015: Open-market purchase - July 30, 2018 - September 28, 2018: Open-market purchase - May 3, 2021: Bonus payment to officers and employees - February 25, 2022: Bonus payment to executive directors - May 2, 2022: Bonus payment to outside directors - February 3, 2023 - February 24, 2023: Bonus payment to officers and employees - April 11, 2023: Issuance of foreign currency - denominated exchangeable bonds - May 3, 2023: Bonus payment to officers and employees - August 3, 2023 - August 4, 2023: Bonus payment to officers, employees and outside directors - November 3, 2023: Bonus payment to officers and employees - February 29, 2024: Bonus payment to employees - April 26, 2024: Bonus payment to the representative director and outside directors - January 24, 2025: Bonus payment to the representative director, officers and employees - February 27, 2025 - February 28, 2025: Bonus payment to employees - April 24, 2025 - April 25, 2025: Bonus payment to officers, employees and outside directors - July 24, 2025: Bonus payment to officers and employees - October 30, 2025: Bonus payment to retired officers, officers and employees - February 6, 2026: Bonus payment to officers and employees - April 6, 2026: Bonus payment to officers - May 4, 2026: Bonus payment to officers and independent directors - May 20, 2026: Bonus payment to retired officers - May 22, 2026: Bonus payment to retired officers - June 5, 2026: Bonus payment to officers VI. Number of outstanding shares (IV-V) 711,075,500 711,075,500 VII. Percentage of treasury shares held 0.2 % 0.2 % 7 B. Treasury Shares (As of June 30, 2026) (Unit: in shares) Type of shares At the beginning of period Changes At the end of period Remarks Acquisition methods Acquired (+) Disposed (-) Cancelled (-) Acquisition within distributable profit Direct acquisition Direct acquisition from market Common shares 17,377,728 450,936 15,300,000 1,626,792 Preferred shares Direct over-the-counter acquisition Common shares Preferred shares Tender offer Common shares Preferred shares Sub-total (a) Common shares 17,377,728 450,936 15,300,000 1,626,792 Preferred shares Acquisition through trust and other agreements Held by trustee Common shares Preferred shares Held in actual stock Common shares Preferred shares Sub-total (b) Common shares Preferred shares Other acquisition (c) Common shares 570 73 570 73 (Note 1 ) Preferred shares Total (a+b+c) Common shares 17,378,298 73 451,506 15,300,000 1,626,865 (Note 2 ) Preferred shares (1) 73 treasury shares were acquired as other acquisitions resulting from the treatment of fractional shares following the exercise of the early redemption right (Clean Up Call Option) on the exchangeable bonds issued on April 11, 2023. (2) During the reporting period, a total of 451,506 treasury shares were disposed of on six occasions for the purpose of bonus payments to officers, employees and outside directors. C. Status of Direct Acquisitions and Disposal of Treasury Shares (As of June 30, 2026) (Unit: in Won and percentages) Classification Expected period Expected amount (A) Executed amount(B) Execution ratio (B/A) Reporting date Start date End date Direct disposal Feb. 29, 2024 Feb. 29, 2024 67,216,512,000 74,392,593,000 111 % Mar. 4, 2024 Direct disposal Apr. 25, 2024 Apr. 26, 2024 467,001,000 465,908,600 100 Apr. 29, 2024 Direct disposal Jan. 23, 2025 Feb. 21, 2025 72,715,862,000 71,886,659,000 99 Jan. 24, 2025 Direct disposal Feb. 27, 2025 Feb. 28, 2025 196,594,260,000 195,319,584,000 99 Mar. 4, 2025 Direct disposal Apr. 23, 2025 May 22, 2025 12,062,762,800 12,051,831,900 100 Apr. 28, 2025 Direct disposal Jul. 23, 2025 Aug. 22, 2025 11,630,346,000 11,627,577,500 100 Jul. 28, 2025 Direct disposal Oct. 29, 2025 Nov. 28, 2025 16,544,355,000 16,761,680,000 101 Oct. 31, 2025 Direct disposal Jan. 28, 2026 Feb. 27, 2026 360,812,000,000 358,953,346,000 99 Feb. 6, 2026 Direct disposal Apr. 23, 2026 May 22, 2026 15,344,064,000 18,139,592,000 118 May 7, 2026 D. Status of Cancellation of Treasury Shares (Unit: in Won and number of shares) Cancellation date Cancellation method Share type Number of shares cancelled Value of shares cancelled February 9, 2026 Cancellation of repurchased shares Common share 15,300,000 872,236,935,000 8 E. Status of Treasury Shares Held (As of June 30, 2026) (Unit: in shares and percentages) Type of shares Number of shares held Ratio to total issued shares Purpose of acquisition Year acquired Cancellation deadline Approved details of holding/disposal plan Classification Approval date Deadline Purpose Acquisition within distributable profits Direct holding Common shares 1,626,792 0.2 Enhancement of shareholder value through stock price stabilization 2018 2027 March 25, 2026 The day before the 2027 General Meeting of Shareholders Compensation for officers and employees Trustee holding Other acquisitions Common shares 73 0.0 (Note 1) 2026 2027 Total Common shares 1,626,865 0.2 (1) 73 treasury shares were acquired in May 2026 as other acquisitions resulting from the treatment of fractional shares following the exercise of the early redemption right (Clean Up Call Option) on the exchangeable bonds issued on April 11, 2023. F. Short-Term Plan for Acquisition, Disposal and Cancellation of Treasury Shares (Relevant Period: January 1, 2026 to December 31, 2026) (Unit: in shares and percentages) Classification Form of holding Type of shares Original purpose of acquisition Transaction method Quantity Ratio to total issued shares Reason for decision Acquisition (Note 1 ) Disposal Acquisition within distributable profits (Direct holding) Common shares Enhancement of shareholder value through stock price stabilization Share-based compensation for officers and employees 527,717 0.1 Exercise of stock options and payment of officer compensation (Note 2) Cancellation Acquisition within distributable profits (Direct holding) Common shares Enhancement of shareholder value through stock price stabilization Cancellation of repurchased shares 15,300,000 2.1 (Note 1) Retention Acquisition within distributable profits (Direct holding) Common shares Enhancement of shareholder value through stock price stabilization Share-based compensation for officers and employees 1,550,654 0.2 Bonus payments to officers and employees, etc. (1) The Company has previously stated that it is considering additional shareholder return measures, such as the repurchase and cancellation of treasury shares, with plans to establish execution details within the year. However, as of the date of this report, specific details regarding the timing and volume have not been finalized. The Company will disclose the plan once finalized, following a requisite resolution by the Board of Directors. (2) Based on stock options for which the exercisable period falls within the relevant period (July 1, 2026 to December 31, 2026). The actual number of shares to be disposed of may vary depending on factors such as the stock price on the applicable reference date for share-based compensation and whether the stock options are exercised. 9 G. Status of Implementation of Short-Term Plan for Acquisition, Disposal and Cancellation of Treasury Shares (Period: January 1, 2026 to December 31, 2026) (Unit: in shares and percentages) Classification Form of holding Type of shares Planned quantity in the prior Period (A) Executed quantity in the current period (B) Execution ratio (B/A) Reason for difference Acquisition 73 (Note 1) Disposal Acquisition within distributable profits (Direct holding) Common shares 450,881 450,936 100 Acquisition within distributable profits (Direct holding) Common shares 570 570 100 Cancellation Acquisition within distributable profits (Direct holding) Common shares 15,300,000 15,300,000 100 Retention Acquisition within distributable profits (Direct holding) Common shares 1,626,847 1,626,865 100 (1) 73 treasury shares were acquired in May 2026 as other acquisitions resulting from the treatment of fractional shares following the exercise of the early redemption right (Clean Up Call Option) on the exchangeable bonds issued on April 11, 2023. H. Long-Term Plan for Acquisition, Disposal and Cancellation of Treasury Shares The Company plans to sequentially dispose of the 1,550,654 treasury shares expected to be held for purposes such as share-based compensation for officers and employees. I. Other Matters Necessary for Investor Protection The Company obtained approval for the 2026 Plan for Holding and Disposal of Treasury Shares at the General Meeting of Shareholders held on March 25, 2026. The timing and quantity of treasury shares to be disposed of for officer and employee compensation remain subject to change, depending on factors such as the trading prices of the Company s shares at the time of disposal under each share-based compensation program. 10 4. Matters Concerning Articles of Incorporation Date of revision General Meeting of Shareholders Key revisions Reason for revisions March 27, 2024 76th General Meeting of Shareholders 1) Article 52 (Payment of Dividends) 2) Article 10-3 (Dividend Base Date for New Shares), Article 8-2 (Number and Details of the Non-Voting Preferred Shares), Article 10-2 (Stock Options), Article 10-5 (Employee Stock Options), Article 14-2 (Issuance of Convertible Bonds), Article 15 (Issuance of Bonds with Warrants) 3) Article 10-6 (Equal Distribution) 1) Amended to provide that dividends shall be distributed to shareholders as of the dividend record date determined by resolution of the Board of Directors. 2) Amended various provisions to apply Article 10-3 mutatis mutandis to new shares issued through, among others, the conversion of convertible shares and convertible bonds, and the exercise of stock options. 3) Newly established in accordance with the amendment of relevant provisions. March 25, 2026 78th General Meeting of Shareholders 1) Article 27 (Appointment of Directors) 2) Article 13-2 (Holding and Disposition of Treasury Shares) 3) Article 17 (Convening of General Meeting) 4) Article 20 (Vote by Proxy) 5) Article 28 (Number of Directors), Article 36 (Qualifications of Independent Directors), Article 45 (Committees), Article 45-2 (Independent Director Candidate Recommendation Committee) 6) Article 32 (Duties of Directors) 7) Article 48 (Composition of Audit Committee) 8) Addenda (Effective from March 25, 2026) 1) Deleted provisions regarding the exclusion of cumulative voting; established specific transitional provisions in the Addenda in consideration of the effective date of the amended Commercial Act; revised provisions to reflect the change of title from Outside Directors to Independent Directors; and relocated provisions regarding the appointment and dismissal of Audit Committee members to Article 48. 2) Established provisions providing the basis for holding and disposing of treasury shares to achieve the Company s business operational objectives. 3) Revised provisions in connection with the introduction of electronic General Meetings of Shareholders. 4) Revised provisions regarding the method of proving proxy authority. 5) Revised provisions to reflect the change of title from Outside Directors to Independent Directors. 6) Revised provisions regarding the expansion of the scope of directors duty of loyalty. 7) Revised provisions regarding the change of title from Outside Directors to Independent Directors, the increase in the number of Audit Committee members to be elected separately and the appointment and dismissal of Audit Committee members. 8) Newly established Addenda and introduced transitional provisions in consideration of the effective date of the amended Commercial Act. II. BUSINESS 1. Business Overview A. Overview The Company is a global semiconductor company headquartered in Icheon-si, Gyeonggi-do, Korea. The Company operates four production facilities, three research and development subsidiaries, and overseas sales subsidiaries and offices including in the United States, China, Singapore, Taiwan, Japan and Europe. 11 The principal products of the Company and its subsidiaries are memory semiconductors, primarily consisting of DRAM and NAND flash, and the Company also operates a foundry business. Semiconductors are broadly classified into memory semiconductors and system semiconductors. Memory semiconductors serve the function of storing and retaining information and are generally categorized as either volatile or non-volatile. Volatile memory products lose stored information when the power supply is disconnected, whereas non-volatile products retain stored information even when the power supply is disconnected. The Company s principal products are DRAM, a volatile memory, and NAND flash, a non-volatile memory. On a consolidated basis, the Company recorded revenue of Won 131.9 trillion for the first half of 2026. B. Industry Status (1) Industry characteristics Semiconductors are an indispensable core component of all information technology ( IT ) products, with an extremely broad range of applications including computers, telecommunications equipment and systems, automobiles, digital consumer electronics, industrial machinery, and control systems. According to market research firm Gartner (Source: Gartner, June 2026), the global semiconductor market reached US$809.0 billion in 2025, of which memory products accounted for approximately 27% of the total semiconductor market, recording US$220.1 billion. Among memory products, DRAM recorded US$146.9 billion, representing 67% of the total memory semiconductor market, followed by NAND flash at US$68.1 billion, accounting for 31%, and other memory products at US$5.0 billion, accounting for 2%. As shown in the table below, the semiconductor industry is a key industry in Korea representing 24.4% of the country s total exports in 2025. In 2025, semiconductor exports demonstrated a rapid growth in light of the arrival of the AI memory demand super-cycle due to a broad expansion of AI technology. (Unit: in millions of US$ and percentages) Category 2025 2024 2023 2022 2021 Total exports 709,330 683,609 632,226 683,585 644,400 Semiconductors 173,406 141,920 98,630 129,229 127,980 Year-on-year change (%) 22.2 43.9 (23.7 ) 1.0 29.0 Share (%) 24.4 20.8 15.6 18.9 19.9 * Source: Korea International Trade Association, July 2026 12 Semiconductors are categorized into memory semiconductors and system semiconductors. a. Memory semiconductors Memory semiconductors, which serve the function of storing and retaining information, are generally categorized as either volatile or non-volatile. Volatile memory products lose stored information when the power supply is disconnected, whereas non-volatile products retain stored information even when the power supply is disconnected, similar to how telephone numbers remain saved in a mobile phone. The Company produces DRAM, a volatile memory, and flash memory, a non-volatile memory. The memory semiconductor industry is one in which securing cost competitiveness through product design technology, process refinement and enhanced investment efficiency are of critical importance. The industry is progressively becoming an oligopoly dominated by a small number of integrated device manufacturer ( IDM ) companies that possess both technological capabilities and cost competitiveness. DRAM (Dynamic Random Access Memory). DRAM is a volatile memory product that retains information only while the power supply is on. It is primarily used as main memory in computers and as graphics memory for video and 3D gaming applications. With the digitalization of consumer electronics, its use has also expanded to smart TVs, smart refrigerators, printers and other devices. Furthermore, adoption of premium DRAM products is surging rapidly in response to growing AI demand, and server DRAM demand is also expected to be sustained as investments in data centers continue globally. Flash Memory. Flash memory is a non-volatile memory product capable of retaining stored data even when the power supply is disconnected. It is broadly divided into NOR-type (code storage) and NAND-type (data storage). Among these, NAND flash, which the Company produces, is a non-volatile memory chip that supports sequential information access and is well suited for the stable storage of various types of information. NAND flash is used in digital storage devices such as USB drives and solid state drives ( SSDs ), as well as in automotive navigation systems, digital cameras, smartphones, tablet personal computers ( PCs ) and other mobile devices, and in data centers. Meanwhile, demand for flash memory has recently been shifting from general-purpose memory towards more customer-oriented products, and accordingly, the importance of proactive application product development and product collaboration with customers that align with this trend has been growing. b. System semiconductors System semiconductors are semiconductors manufactured for the purpose of information processing. They are classified by their characteristics into analog, logic, micro, discrete and sensor categories. Among these, the Company previously produced CIS. In March 2025, the Company decided to transition its CIS business division to the AI memory sector. (2) Growth potential The semiconductor industry is responding to rapid market changes through technological innovation and has established itself as a core element not only in electronic products used in daily life but also in advanced new industry sectors such as AI, Internet-of-Things ( IoT ), autonomous driving and biotechnology. Accordingly, the scope of semiconductor applications is expanding across diverse industry sectors, and sustained market growth is expected in tandem with the advancement of new technologies. In 2022, market conditions deteriorated from the second half of the year due to geopolitical crises, global supply chain issues, and concerns over an economic recession triggered by global interest rate hikes, resulting in the semiconductor market recording growth of only 1.1%, while the memory semicondutor market contracted by 13.7%. In 2023, semiconductor exports experienced an unprecedented downturn as internal and external uncertainties persisted, including global supply chain instability and a slowdown in global economic growth. The semiconductor market in 2023 exhibited negative growth, with the overall semiconductor market declining by 11.7% and the memory market declining by 35.8%, attributable to decreased demand for IT products such as PCs and mobile devices and falling prices amid elevated industry memory inventory levels. In 2024, demand for electronic products, which had been sluggish, recovered, and the AI market began to flourish in earnest, with demand expanding primarily for high-performance and high-capacity memory, resulting in growth of 21.0% for the semiconductor market and 73.4% for the memory semicondutor market. In 2025, the semiconductor industry recovery trend that had begun in earnest the previous year continued, with strong growth driven primarily by increased demand from the expansion of AI-based infrastructure, as the semiconductor market recorded growth of 23.0% and the memory semicondutor market recorded growth of 37.8%. In 2026, the expansion of AI infrastructure investment and the increase in data center demand are expected to continue, sustaining the growth trajectory of the semiconductor market, and the memory semicondutor market is expected to maintain a solid growth trend centered on the expansion of demand for high-value-added products such as high-bandwidth memory ( HBM ) and DDR5. (Source: Gartner, June 2026) 13 DRAM. According to market research firm Gartner (Source: Gartner, June 2026), in 2022, the market recorded negative growth at US$78.7 billion (or -15.4%) due to declining demand caused by reduced mobile demand resulting from China s lockdowns, weakened server demand driven by inventory corrections at server companies, and saturation of the PC market. In 2023, with industry memory inventory levels elevated amid global supply chain instability caused by trade conflicts and armed conflict, as well as a contraction in the global economy and consumer sentiment, IT product demand declined sharply. Despite the expansion of premium product sales such as HBM driven by surging AI demand, the market continued its negative growth trajectory, recording US$49.9 billion (or -36.5%). In 2024, demand that had been depressed, primarily in the general server segment, recovered, and HBM grew on the back of expanding AI demand, resulting in a significant rebound to US$91.6 billion (or +82.7%). In 2025, demand increased substantially, centred on HBM, a high performance, high capacity memory, driven by the advancement of generative AI services and the commercialization of on-device AI, with the market continuing its growth trajectory to reach US$146.9 billion (or +60.0%). In 2026, amid the continued expansion of demand for high performance memory centered on AI servers and data centers, growth is expected to continue, driven by the increase in demand for high value-added products centered on HBM and DDR5. NAND Flash. According to market research firm Gartner (Source: Gartner, June 2026), in 2022, the market recorded negative growth at US$57.9 billion (or -12.4%) as demand across all application products weakened due to deteriorating macroeconomic conditions and declining IT product demand. In 2023, with heightened domestic and external uncertainties and continued demand weakness across all application products, the market sustained its negative growth trajectory, recording US$37.1 billion (or -35.9%). In 2024, market conditions improved as a result of supply constraints and demand recovery, and the adoption of enterprise SSD ( eSSD ), which has advantages such as low power consumption, expanded in connection with the growing AI market. NAND demand increased accordingly, recording growth of US$63.4 billion (or +71.0%), demonstrating that the benefits of AI were spreading from DRAM to NAND. In 2025, demand expanded centered on industry supply adjustments and enterprise SSDs required for AI-oriented data centers, with the market showing improvement at US$68.1 billion (or +7.0%). In 2026, eSSD demand is expected to maintain a solid growth trend due to the increase in data center storage demand driven by the expansion of AI infrastructure investment, and the expansion of demand centered on high performance and high capacity products is expected to drive market growth. (3) Business cycle fluctuations The global semiconductor market has short product life cycles and possesses the characteristics of a capital intensive industry that requires large-scale investment for the production of new products. The semiconductor industry has experienced repeated cycles of boom and bust due to price and supply stability fluctuations caused by supply and demand imbalances, as it is difficult to adjust supply volume in a short period of time. This has been closely correlated with the macroeconomic business cycle of the United States and Europe, which comprise the major demand markets. Recently, as areas of AI application have diversified, demand for new technologies has been increasing, and as the market expands, demand volatility has been rising due to changes in market conditions such as geopolitical risks and deterioration of macroeconomic conditions. DRAM. DRAM has been growing primarily around mobile devices such as smartphones and tablet PCs and servers, and as demand sources have diversified into AI, data centers, automobiles and other areas, business cycle volatility has shown signs of reduction compared to the past. Meanwhile, with respect to demand seasonality, although second half demand increases driven by the back-to-school season and the Christmas season in the United States and Europe had historically been pronounced, diversification of sales markets resulting from the growth of Asian markets and the dispersion of launch timings of new smartphones has led to a partial weakening of such traditional demand seasonality in recent periods. Demand for PCs also experienced a temporary surge as remote working and video conferencing practices became established following the COVID-19 pandemic. Servers have demonstrated steady demand despite minor fluctuations in accordance with global market conditions, supported by continued investment and growth. Recently, with the growth of the AI market, demand for HBM, a high performance semiconductor capable of executing deep learning and handling high quality data, has surged. The continued growth of the IT product and services market driven by the proliferation of generative AI is expected to have a positive impact on DRAM demand. 14 NAND Flash. NAND flash has experienced rapid growth in the past, driven by increasing demand for MP3 players, memory cards and similar products. Recently, as IT devices have become smarter and higher in performance, the major applications for NAND flash have shifted to embedded multi-media card ( eMMC ), universal flash storage ( UFS ), and SSDs, in which a controller and raw NAND are combined, resulting in higher added value. In addition, these eMMC and SSD products, similar to DRAM, have begun to be installed in a wide variety of products including smartphones, tablet PCs, notebooks, PCs, servers, storage and flash arrays, and business cycle volatility is expected to decrease compared to the past. The mobile product market, including smartphones, has reached a state of saturation. However, the need for high performance and high capacity NAND is increasing due to the expansion of on-device AI adoption, and the high capacity eSSD product market is expanding due to the spillover effects of AI. (4) Competitive elements The core competitiveness of the semiconductor business consists of (1) technology and cost competitiveness, (2) market responsiveness (customer acquisition, product portfolio) and (3) capital investment capability, among others. Recently, as application areas have gradually become more diversified and converged away from standard products that are conducive to mass production, the paradigm of competition has been rapidly shifting from a cost competitiveness focus driven by facility investment and productivity improvement to a profitability focus driven by enhancing product value. In the past, expansion of production capacity and reduction of production costs through aggressive investment were the core competitive factors. However, the business environment has changed recently due to increased difficulty in achieving further process refinement and growing uncertainty of return on investment. Accordingly, going forward, achieving investment reduction through the advancement of production technology, as well as the development of various preceding technologies and application technologies and the development of converged application products that combine memory controllers and firmware to enhance the added value of products, will become important sources of business competitiveness. In addition, as securing through-silicon via ( TSV ) technology competitiveness in the DRAM sector, smooth early market entry for new memory products, collaboration with related technology companies for the expansion of the eMMC and SSD product markets, and customer satisfaction have all become increasingly important, marketing and customer support activities have also emerged as core competitive factors. In addition, the ability to respond to the market by launching products that meet market demands in a timely manner and the securing of financial soundness are also becoming necessary. C. Company Status (1) Overview of operations and classification of business segments a. Overview of operations In the second quarter of 2026, price increases continued due to strong demand conditions driven by the expansion of AI infrastructure investment and the continuation of a constrained supply environment. Both DRAM and NAND flash experienced significant further price increases following those in the previous quarter, and AI-related products such as server DRAM and eSSDs led this trend. The Company s revenue for the second quarter of 2026 was Won 79.3 trillion, an increase of 51% compared to the previous quarter and 257% compared to the same period of the previous year, representing the Company s highest ever quarterly revenue for the second consecutive quarter. In addition, the operating profit for the second quarter of 2026 was Won 60.5 trillion, an increase of Won 22.9 trillion compared to the previous quarter, and the operating profit margin was 76%, resulting in all time quarterly records for both metrics. 15 (Unit: in millions of Won and percentages) Category Second quarter of 2026 First quarter of 2026 Quarter-to-quarter comparison (versus first quarter of 2026) Second quarter of 2025 Year-to-year comparison (versus second quarter of 2025) Revenue 79,318,746 52,576,287 50.9 % 22,231,952 256.8 % Cumulative revenue 131,895,033 39,871,093 Operating profit 60,542,608 37,610,283 61.0 % 9,212,851 557.2 % Cumulative operating profit 98,152,891 16,653,355 Profit 93,922,593 40,345,909 132.8 % 6,996,216 1,242.5 % Cumulative profit 134,268,502 15,104,411 * Consolidated results prepared in accordance with K-IFRS. b. Classification of business segments (Unit: in millions of Won and percentages) Classification Revenue (for the six months ended June 30, 2026) Percentage of revenue Major products Semiconductor segment 131,895,033 100.0 % DRAM, NAND flash and others Total 131,895,033 100.0 % * The Company falls under Semiconductor and Other Electronic Component Manufacturing according to the subclassification of the Korean Standard Industrial Classification. As revenue from the semiconductor segment exceeds 90% of the Company s total revenue, its business is presented as a single semiconductor segment. (2) Market share (Unit: percentages) Classification Three months ended March 31, 2026 Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023 DRAM 29.1 % 34.8 % 33.4 % 29.9 % NAND Flash 18.5 % 20.9 % 21.4 % 19.6 % * Source: DRAM (IDC, May 2026) and NAND flash (IDC, June 2026). (3) Competitive factors in the market and the Company s competitiveness DRAM. The PC memory market recorded solid growth in 2025 due to a concentration of comprehensive replacement demand. Following the full-scale commencement of the replacement cycle for education and enterprise PCs that had surged during the COVID-19 pandemic, replacement demand driven by the official end of support for the Windows 10 operating system in October 2025 drove the market. In addition, as demand for high performance computing increased with the full-scale launch of AI PCs, total PC shipments in 2025 grew significantly compared to the previous year. Although adjustments to PC shipments and a partial slowdown in demand are expected in 2026 due to the purchasing burden resulting from recent memory price increases, the emergence of AI PCs is becoming a new growth driver for the market. AI PCs require a minimum of 16GB of memory and, for high specification models, 32GB or more, and this trend of increasing DRAM capacity is expected to serve as a core factor driving the qualitative growth of the PC DRAM market going forward. For a sustainable growth of the PC and DRAM markets going forward, the creation of a practical utilization environment is essential. Currently, the development of AI applications centered on AI agents is actively underway, and as the software ecosystem matures, demand for AI PCs is expected to further accelerate. This will drive the increase in demand for high specification and high capacity DRAM for PCs over the medium- to long-term and establish a foundation for sustainable growth of the industry. The server memory market is sustaining structural growth as AI infrastructure investment transitions from the training stage to the inference and AI agent-based service proliferation stage. Demand for AI training servers is expected to remain solid due to increasing model sizes and enhanced multimodal support, and in the case of AI inference servers, computing resource and memory bandwidth requirements are surging due to the proliferation of chain-of-thought ( CoT ) reasoning technology for the enhancement of service performance. In addition, the full scale commercialization of AI agent-based services is expected to promote the expansion of related server infrastructure investment, leading to an increase in new data center construction and the sustained growth of server oriented memory demand. 16 As AI scaling principles extend into the inference domain, the adoption of high specification (high performance and high capacity) infrastructure is becoming essential even for general enterprises. As hybrid workload environments that perform data analysis, inference and general tasks in an integrated manner have become mainstream, demand is increasing not only for AI servers but also for general purpose ( GP ) servers for data management. Replacement demand for legacy platforms by enterprises seeking to enhance operational efficiency and reduce total cost of ownership ( TCO ) is continuing solidly, and this is serving as a factor that continually supports market growth. Furthermore, the enterprise and on-premise market is also expected to achieve high growth going forward due to demand driven by corporate private AI and country specific sovereign AI initiatives. As AI servers become increasingly high performance, the trend of adopting high capacity memory continues to expand, and efforts to optimize product configurations by customer in consideration of memory supply constraints and cost efficiency are also being pursued in parallel. On the other hand, for GP servers, memory configuration optimization in consideration of workload and investment efficiency is expanding, and memory strategies are becoming differentiated by server type. The Company is responding to customer requirements in a timely manner with optimized products based on industry leading technology competitiveness and high performance and high capacity memory solutions applicable across AI and GP servers through close collaboration with customers and timely mass production on advanced process nodes, and is continuously strengthening its competitiveness in line with AI driven server market growth. The graphics memory market is expanding its areas of utilization beyond the increase in high specification and high resolution gaming, the proliferation of 4K and 8K media video content and 3D graphics technology support to graphics processing units ( GPUs ) for AI data centers and servers. The Company has launched GDDR7 with improved speed and power efficiency to meet high performance and high capacity requirements, thereby strengthening its premium memory leadership. The game console market is expected to see solid demand for memory due to the launch of replacement and new models with enhanced performance compared to existing models, and medium- to long-term demand is expected based on a stable demand base. The Company aims to establish medium- to long-term cooperative relationships with console manufacturers spanning from currently mass produced models to subsequent models and to develop constructive business. The HBM market is driven by the increase in workloads in the AI and deep learning sectors, with HBM being installed to accelerate workstations and high performance computing ( HPC ) systems. HBM can be described as memory optimized for the AI era. In the generative AI market, new technologies capable of creating industrial value beyond the research stage are emerging and expanding into diverse applications. Over the long term, demand for high performance accelerators (GPU, fied-programmable gate array ( FPGA ) and application-specific integrated circuit ( ASIC )) for data centers and HPC is expected to increase through the application of proprietary inference accelerators and system optimization for differentiated generative AI services. The Company is realizing time to market for HBM products and strengthening optimal ASIC development cooperation based on industry leading performance and quality through the enhancement of bandwidth and the increase in density and core die stacking layers, and is making its best efforts to lead the HBM market on this foundation. Consumer memory is expected to see technological advancement centered on home appliances (TVs, set-top boxes, AI speakers and others) based on AI and connectivity utilization, and the Company is seeking customer purchases through the expansion of profitability focused premium (high resolution and large screen) segments, the addition of AI functions based on connectivity and the enhancement of device convenience. Digital TV manufacturers are pursuing expandability through enhanced computing performance support, in-home activity and the installation of non-fungible token ( NFT ) trading platforms, while also seeking to achieve user convenience through differentiated value delivery via screen rotation and the enhancement of spatial efficiency. Over-the-top ( OTT ) and AI speaker producers are pursuing the development and expansion of the media market based on home connectivity. In addition, the launch of augmented reality ( AR ) and virtual reality ( VR ) devices with AI agent applications and the increase in memory products adopted in such devices are increasing, and this is expected to serve as a significant factor in medium- to long-term memory semiconductor demand. In the security sector, the overall market size is expanding amid participation by Big Tech companies. In the automotive sector, the importance of memory semicondutors is expanding alongside the application of high performance system-on-chips ( SoCs ) in accordance with the integrated digital cluster transformation of vehicle instrument panels and the advancement of infotainment system specifications. The acceleration in the adoption of advanced driver-assistance systems ( ADAS ) and the advancement of autonomous driving technology are expected to drive the expansion of the medium- to long-term high capacity and high quality memory market. The Company is solidifying its market position and expanding its business through a diverse portfolio including general purpose products (DDR4 and DDR5) and low voltage and high speed products (LPDDR4 and LPDDR5) as well as specialty products (Industrial Temp, Automotive Grade and HBM) along with the provision of longevity policies. 17 Mobile memory is primarily adopted in devices requiring low power and high bandwidth such as smartphones. Memory market growth accompanied by average product upgrades is expected to accelerate due to increases in memory content driven by the expansion of on-device AI smartphones. In particular, the adoption of high capacity products is increasing, centered on flagship oriented LPDDR5X and LPDDR5T, and demand for ultra high speed and ultra high capacity memory adoption for flagship model differentiation and on-device AI implementation is expected to continue to expand. Over the medium to long term, as mobile devices evolve into core hubs of a hyper-connected society in accordance with the advancement and intelligence enhancement of AI functions, requirements for computing processing capabilities are expected to increase. The Company will seek to lead the market by building a diverse range of mobile products based on the latest market trends and customer demand leveraging its industry leading advanced technology capabilities, and by concentrating its capabilities on the development of next generation mobile memory products to achieve high performance, high capacity and low power consumption. NAND Flash. NAND flash is a representative memory semiconductor used for data storage purposes and has grown alongside the rapid evolution of the technology industry. In particular, the trend of increasing product adoption rates and capacity in cutting edge IT devices and various household appliances is continuing. In the past, the primary areas of NAND flash use were the mobile device sector including smartphones and tablet PCs and the adoption of SSDs as a replacement for hard disk drives ( HDDs ), which are the storage media of personal and business PCs such as notebooks and desktops. However, at present, eSSDs adopted in expanded data centers are gaining prominence alongside the IoT transformation of spaces such as smart homes and smart cities and the digital nomad trend. In particular, the differentiation strategies of flagship smartphones such as foldable phones and the increase in high capacity NAND flash adoption driven by the strength of cloud computing are driving growth, and the proliferation of electric vehicles and autonomous vehicles, the blossoming of generative AI and the potential of on-device AI are attracting attention as future growth drivers. AI technology is evolving from training to inference, and the data being processed has expanded from text-oriented structured data to unstructured data such as voice, images and video. Amid this technological evolution, customer requirements driven by capacity increases, data warming and power issues are further highlighting the advantages of SSDs, and the low power design and environmentally friendly technology of NAND flash are contributing to enhancing the energy efficiency of IT devices and reducing carbon emissions. In conclusion, NAND flash is achieving continual advancement in the direction of higher capacity, higher performance and enhanced stability, thereby meeting the data storage requirements of modern digital society. In particular, the introduction of environmentally friendly design through innovative technologies such as quad-level cell ( QLC ) and peripheral component interconnect express ( PCIe ) Gen5 and improvements in data write and erase speeds and overall performance will be important elements that will lead future data storage technology, and NAND flash technology is expected to continue to play an important role at the center of digital data storage going forward. In this environment, the Company is actively responding to customer demand based on application convergence products with various interfaces and capacities, and is securing competitiveness in NAND flash and solidifying its market position through selection and concentration by application area. The Company developed the world s first 321 layer QLC and secured an overwhelming technology gap through processes including customer qualification. To respond to the high capacity QLC eSSD market, the Company is strengthening integration synergies with Solidigm and is expanding its leading position within the eSSD market by evolving into a full line-up supplier equipped with both high performance and high capacity, while responding to market condition changes in a timely manner through the expansion of product and customer scope. Recently, as the AI inference market has experienced rapid growth, demand for NAND storage products capable of processing large volumes of data quickly and efficiently has expanded significantly. Accordingly, the Company plans to build an AIN (AI NAND) Family line-up to meet customer demand with solution products optimized for the AI era. The AIN Family consists of NAND solution products individually optimized for performance and bandwidth to improve data processing speed. AIN P (Performance) is a high-performance solution currently under development based on next-generation high-speed NAND and specialized controllers. Its primary objective is to support the high input/output operations per second ( IOPS ) required for processing ultra-high workloads in AI inference environments. On the other hand, AIN B (Bandwidth) is a High Bandwidth Flash ( HBF ) solution that maximizes data transmission channels through advanced stacking of NAND chips. It is specifically designed to eliminate large-volume data bottlenecks and dramatically expand bandwidth. In a market environment that is rapidly changing with a focus on AI, the Company plans to grow into a core supplier in the AI memory market by strengthening strategic collaboration with customers and various partners in next-generation NAND storage. 2. Major Products A. Updates on Major Products (Unit: in millions of Won and percentages) Business Type of revenue Items Specific use Major trademarks For the six months ended June 30, 2026 Revenue Ratio Semiconductor Products and others DRAM, NAND flash and others Industrial electronic devices SK hynix 131,895,033 100 % Total 131,895,033 100 % 18 B. Price Trends for Major Products DRAM shipment volume increased slightly as sales expanded centered on HBM3E and AI-oriented server DRAM products, and average selling price ( ASP ) rose in the mid-30% range due to the continuation of strong pricing for general DRAM. NAND shipment volume increased in the mid-10% range compared to the previous quarter due to the base effect from the decline in shipments in the first quarter and the impact of expanded eSSD sales, and ASP rose in the mid-50% range compared to the previous quarter due to the effect of price increases across all products. 3. Raw Materials The raw materials used in the production process of the Company s memory semiconductors are broadly composed of wafers, substrates, printed circuit boards ( PCBs ) and other materials. A wafer is a core material used in the fabrication of semiconductor devices. It is made by growing a single crystal of semiconductor material into a cylindrical silicon ingot and then thinly slicing it into a disc shape for the purpose of manufacturing integrated circuits ( ICs ). A substrate is one of the raw materials used to make a package. It is a component that serves as a structural framework, connecting electrical signals while protecting and supporting the chip from external moisture, impact and other factors. A PCB is a printed circuit board that completes circuit functions by fixing and connecting components such as resistors, condensers, coils, transistors, integrated circuits, large scale integration circuits and switches onto its surface. In addition, gases, chemicals, device components and other items are used as raw materials in the semiconductor manufacturing process. A. Updates on Major Raw Materials (Unit: in millions of Won and percentages) Business Type of purchase Items Specific use For the six months ended June 30, 2026 Purchase amount Ratio Semiconductor Raw materials Wafer Fab 999,418 9 % Substrate Package 287,585 3 % PCB Module 156,983 1 % Others 5,588,736 51 % Subtotal 7,032,723 64 % Supplies Spare parts, supplementary materials 3,936,882 36 % Total 10,969,605 100 % B. Suppliers of Major Raw Materials and the Stability of the Raw Material Supply Market The Company procures finished 300mm wafer products from major suppliers in the industry that possess production facilities in Japan, Korea, Germany, the United States and other countries. Wafer prices are influenced by supply and demand trends in the global semiconductor industry. The Company plans to continue to strengthen its cost competitiveness through medium-to-long term cooperative relationships with major suppliers and also closely monitor market conditions while keeping in mind at all times external uncertainties including those arising from rapid increases in demand. In the case of substrates, the Company procures finished substrate products from nine companies that possess production facilities in Korea, Japan and China. On a worldwide basis, there are more than approximately 50 substrate suppliers, and the nine companies with which the Company transacts are suppliers that satisfy the levels required by the Company in terms of quality and supply capacity. Substrate prices are influenced by supply and demand trends in the global semiconductor industry. In particular, substrates are multi variety products to which individual designs are applied on a customized basis depending on the type, density and other specifications of the semiconductors produced by the Company. In line with the trend toward thinner, lighter, shorter and smaller packages, the difficulty of substrate fabrication is also on an increasing trend. The Company will strengthen the competitiveness of its supply chain and maintain a healthy cooperative relationship through continuous quality improvement and diversification activities with its substrate suppliers. PCBs are procured from six companies located in Korea and the Greater China region, including China and Taiwan. The PCB suppliers with which the Company transacts are major suppliers within the industry and satisfy the various requirement levels of the Company as well as other industry players in terms of quality and capacity, among other factors. 19 PCB prices are not only influenced by the supply and demand of final semiconductor products but are also affected by the transaction prices of major raw materials due to the product characteristic of having a high proportion of raw material content. Recently, the price volatility level of raw materials for PCB has been elevated due to economic uncertainty, and there has been volatility in procurement costs in line with the trend toward high reliability, high speed and high capacity requirements for the latest new products. However, the Company is simultaneously enhancing its PCB cost competitiveness and improving quality and production stability through preemptive activities such as production site diversification, product design optimization, quality improvement and inventory adjustment. In addition, diversification of production regions to Southeast Asia is underway in order to respond to uncertain supply conditions. 4. Production Capacity and Investment Status A. Production Capacity (1) Production capacity and the basis for calculating production capacity The Company operates on a four crew, three shift system. Including holidays and public holidays, the total number of operating days in the first half of 2026 was 181 days, and the Company s average operating hours, calculated taking into account the operating personnel and utilization rates of each regional fab, were 22,709,183 hours per month. Production capacity is calculated using the method of maximum production volume on a production day in a given year multiplied by the cumulative number of days in a given period multiplied by average cost. The production capacity for the first half of 2026 was Won 24,152,765 million. (Unit: in millions of Won) Business For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Semiconductor 24,152,765 41,216,512 35,232,737 (2) Production output and utilization ratio The Company s production performance for the first half of 2026 was Won 24,152,765 million, and the average utilization rate of production facilities during the same period was maintained at 100%. a. Production output (Unit: in millions of Won) Business For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Semiconductor 24,152,765 41,216,512 35,232,737 b. Utilization ratio (Unit: hours and percentages) Business Available working hours Actual working hours Average utilization ratio Semiconductor 136,255,098 136,255,098 100 % B. Investment Status (Unit: in billions of Won) Purpose of investment Subject of investment Investment effect Investment period Amount already invested Investment effect Supplementary investment, etc. Machinery and others Increase in production capacity, etc. Six months ended June 30, 2026 17,595 Cumulative amount Total 17,595 20 5. Revenues A. Matters Relating to Revenue (1) Revenue (Unit: in millions of Won) Business Sales type Item For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Semiconductor Products and others DRAM, NAND flash and others 131,895,033 97,146,675 66,192,960 Total 131,895,033 97,146,675 66,192,960 (2) Sales Channels and Sales Methods a. Sales organization In Korea, the Company maintains distributors under the supervision of its AI Infra division. Overseas sales subsidiaries are located in countries including the United States, China, Singapore, Taiwan, Japan and Europe, which also maintain cetrtain distributors under their supervision. b. Sales channels The Company s sales channels can be broadly divided into direct sales transactions and distributor transactions. Direct sales transactions refer to sales made directly by the Company to end users such as general enterprises, and distributor transactions refer to sales made by the Company to end users such as general enterprises through distributors. c. Sales methods and terms Domestic sales are delivered on cash or promissory note payment terms based on the order status of domestic distributors and others, and exports are delivered through letter of credit or documents against acceptance and documents against payment transactions based on master letters of credit and local letters of credit. d. Sales strategy The Company s sales strategy is based on four principles: optimization of the business portfolio, enhancement of the profitability structure, maintenance of customer relationships and regional positioning. The Company is pursuing optimization of its portfolio for business stability and diversifying its product mix to expand revenue. To enhance the profitability structure, the Company is expanding sales of high-value-added products and strengthening its market insight capabilities to pursue the development of future markets. To maintain customer relationships, the Company is strengthening customer value proposition activities and providing specialized products to enhance customer satisfaction. In addition, the Company is pursuing the expansion of strategic customer revenue by region through differentiated product strategies that take into account regional characteristics. e. Major customers In the case of DRAM, the Company supplies products to leading global mobile- and computing-related electronics companies. Because the demand sources for NAND flash are diverse across IT consumer products, the Company has secured customers including global mobile device and IT product manufacturers as well as producers of high capacity storage devices such as SSDs and memory cards. B. Order Status The Company determines supply volumes and prices on a monthly and quarterly basis by mutual agreement with major customers, and there is no order backlog based on long term supply contracts. 21 6. Derivative Transactions A. Currency and Interest Rate Swap Contracts Currency and interest rate swap contracts under cash flow hedge accounting as of June 30, 2026 are as follows: (Unit: in millions of Won and thousands of US$) Borrowing date Hedged item Hedged risk Contract type Financial institution Duration of contract October 2, 2019 Floating rate foreign currency facility loan (Face amount: US$62,500 thousand) Foreign currency risk and interest rate risk Cross currency interest rate swap Korea Development Bank October 2, 2019 October 2, 2026 October 2, 2025 Floating rate foreign currency facility loan (Face amount: US$14,000 thousand) Foreign currency risk and interest rate risk Cross currency interest rate swap Shinhan Bank October 2, 2025 October 2, 2029 April 4, 2023 Floating rate facility loan (Face amount: Won 100,000 million) Interest rate risk Interest rate swap Woori Bank April 4, 2023 April 4, 2028 March 7, 2024 Floating rate facility loan (Face amount: Won 186,000 million) Interest rate risk Interest rate swap Shinhan Bank March 7, 2024 October 18, 2027 7. Major Contracts Name of party Item Description Remarks Rambus Inc. Contract type Patent cross license agreement Contract period July 1, 2013 to June 30, 2034 Purpose and description Through the patent cross license agreement, the Company secured usage rights to patents held by Rambus Inc. related to all semiconductor product technologies, thereby resolving the possibility of future disputes Other key matters Intel Corporation Contract type Business acquisition and transfer Contract execution date October 20, 2020 Purpose and description Acquisition of Intel Corporation s NAND business Other key matters Following the final payment of the contract amount over two phases, the business acquisition and transfer concluded on March 28, 2025 * Includes major contracts during the past five years. 8. R&D Investments Set forth below are the Company s R&D expenditures on a consolidated basis. (Unit: in millions of Won except percentages) Category For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Remarks R&D costs Raw material 60,340 114,739 104,687 Labor 3,503,982 2,718,918 1,612,207 Depreciation 317,145 503,697 531,223 Commissioned service 335,612 533,136 426,303 Others 1,825,792 2,862,038 2,280,027 Total R&D costs 6,042,871 6,732,527 4,954,447 Accounting R&D cost (Expenses) 5,816,284 6,465,637 4,536,723 Development costs (Intangible assets) 226,587 266,890 417,724 R&D cost / sales amount ratio (Total R&D costs / Current sales amount×100) 4.6 % 6.9 % 7.5 % Sales amount 131,895,033 97,146,675 66,192,960 22 9. Other Information Relating to Investment Decisions A. Intellectual Property As of June 30, 2026, the Company held a total of 22,236 intellectual property rights. While registered rights generally increase each year, these figures may fluctuate somewhat due to rights that have been abandoned through the expiration of their duration or through the evaluation of previously registered rights. The Company s intellectual property rights are managed by a dedicated organization composed of specialized personnel, and such specialized personnel are responsible for all related activities, including the filing and registration of intellectual property rights, post registration management and dispute response. Patent rights and trademark rights are protected under the patent laws and trademark laws of each respective country. The duration of patent rights is 20 years from the filing date, and the duration of trademark rights is 10 years from the registration date. The duration of trademark rights may be extended through renewal registration procedures. B. Regulatory Matters Under Laws and Regulations of the Government or Local Governments In the event that semiconductor technology designated as a national core technology pursuant to Article 11 of the Act on Prevention of Divulgence and Protection of Industrial Technology, or designated as a strategic technology pursuant to Article 12 of the Act on Special Measures for Strengthening the Competitiveness of, and Protecting National High-Tech Strategic Industries, is transferred overseas, the exporter is obligated to obtain approval from the Ministry of Trade, Industry and Resource or to file a report with the Ministry of Trade, Industry and Resource. Accordingly, when transferring semiconductor technology to overseas production plants and technology centers for the purpose of strengthening product development competitiveness, the Company complies with and implements the relevant laws and procedures. C. Environmental Protection Policies and Status (1) Safety, Health and Environment ( SHE ) Management System Certification The Company has obtained and maintains the international certification standards ISO 45001 (Occupational Health and Safety Management System) and ISO 14001 (Environmental Management System) as well as the domestic certification standard KOSHA MS (Occupational Health and Safety Management System), and carries out activities to ensure objectivity and maximize the effectiveness of its SHE management activities. The Company s SHE management organization has developed internal auditors to monitor SHE impact factors arising from corporate activities, and conducts proactive and systematic SHE management in accordance with domestic and international certification standards. The Company pursues continual improvement in the SHE management areas, and will continue its efforts to minimize environmental impact and establish healthy and safe workplaces. (2) Response to Climate Change Convention The Company complies with and actively responds to climate change-related regulations in order to manage tangible and intangible risks and opportunities related to climate change. In addition, the Company has prepared strategies for managing costs and product quality that may arise from climate change, and is responding at the enterprise-wide level to create new value with respect to the environment by continually securing the trust of customers and the government. a. Efforts to Achieve Net Zero The Company, under its Carbon Management Committee, is continually pursuing efforts to reduce direct and indirect greenhouse gas emissions (Scope 1 and 2) including reducing process gas emissions and enhancing energy efficiency. At the same time, the Company is improving the methodology for calculating value chain emissions (Scope 3) and strengthening the engagement of its business partners. Going forward, the Company plans to advance the detailed roadmap and implementation measures for achieving Net Zero by 2050 and transparently communicate its efforts and detailed action plans for responding to climate change to stakeholders. 23 b. Renewable Energy 100 ( RE100 ) Declaration The Company seeks to actively contribute to achieving Net Zero and responding to global climate change through the expansion of eco-friendly energy use. Through its RE100 declaration to procure 100% of electricity used from renewable energy sources in 2020, the Company committed to 100% renewable energy use at its global worksites by 2050, and announced an interim target of 33% renewable energy use by 2030 as a milestone toward that commitment. Successful procurement of renewable energy requires an in-depth understanding of national policies, systems and procurement infrastructure in each country, and the establishment of customized strategies for each country based thereon is essential. To this end, the Company operates the Carbon Management Committee to closely review medium- to long-term RE100 implementation strategies and renewable energy procurement measures in connection with the 2050 Net Zero plan and government energy policies. In particular, in February 2024, the Company entered into its first direct solar power purchase agreement as part of its efforts to expand a stable foundation for renewable energy procurement. Going forward, the Company will continue to expand collaboration with various stakeholders within the renewable energy ecosystem and progressively diversify its RE100 implementation measures to continuously enhance its execution capability for the transition to renewable energy. c. Response to Greenhouse Gas Emissions Trading Scheme The greenhouse gas emissions trading scheme is a system under which the government allocates greenhouse gas emission allowances to each company, and companies purchase or sell emission allowances based on the emission allowance prices formed by market principles in accordance with each company s marginal abatement cost. The Company was designated as an entity subject to emission allowance allocation on September 12, 2014 pursuant to the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis and the Act on the Allocation and Trading of Greenhouse Gas Emission Permits, and has participated in the greenhouse gas emissions trading scheme since 2015. The Company has developed and operates greenhouse gas reduction device (scrubber) measurement technology to induce emission reductions in order to achieve the allocated greenhouse gas emissions, and is pursuing enterprise-wide task force activities including emission allowance management and reduction as well as emission allowance trading. Pursuant to Article 27 of the Framework Act on Carbon Neutrality, the greenhouse gas emissions for 2025 based on the content of the statement reported to the government are 5,006,399 tCO2e. d. Greenhouse Gas Emissions and Energy Consumption The Company s greenhouse gas emissions and energy consumption information is as follows. Category For the year ended December 31, 2025 For the year ended December 31, 2024 For the year ended December 31, 2023 Greenhouse gas emissions (tCO2 eq) 5,006,399 4,860,000 4,784,221 Energy consumption (TJ) 98,070 96,050 94,552 * The scope is based on domestic worksites, and represents the Company s greenhouse gas emissions and energy consumption reported to the government. ** Greenhouse gas emissions and energy consumption may be subject to change in accordance with the government s emissions conformity assessment. e. Achievement of 10th Consecutive Year in the CDP Carbon Management Best Company Hall of Fame The Company was included in the Carbon Management Global Leaders Club, the top performing group in carbon management selected by the Korea Committee of the Carbon Disclosure Project ( CDP ), for five consecutive years and subsequently became the first company in Korea to be inducted into the Hall of Fame. As of 2025, the Company maintains the longest running Hall of Fame status in Korea. 24 (3) Efforts to Establish Eco Friendly Products and Worksites a. Operation of SHE CHEMs for Full Lifecycle Assessment of Chemical Substances The Company has established self-regulated substances based on domestic and international laws and conventions and operates a SHE Chemical Hazard Evaluation Management System, a chemical substance intake management system, to continually conduct preliminary reviews and ongoing management of hazardous chemical substances. Documents such as material safety data sheet, chemical substance guarantees and level of concern are reviewed by experts in each SHE field, and only chemical substances that have completed reviews in all fields may be used within the Company. In addition, the Company has published SK hynix RSC (Regulated Substances for Chemical Management), which contains the Company s chemical substance policies, for the purpose of mutually beneficial cooperation with business partners, and holds annual briefing sessions for chemical substance suppliers. b. Life Cycle Assessment / Water Footprint / Carbon Footprint / Zero Waste to Landfill ( ZWTL ) Certification / Circular Resource Recognition The Company conducts life cycle assessments for its major DRAM and NAND flash memory products every year. In 2021, the Company obtained water footprint and carbon footprint certifications from the Ministry of Climate, Energy and Environment for its 10 nanometer class 6Gb LPDDR4 DRAM products and 3D V4 NAND 256Gb triple-level cell ( TLC ) products. In 2022, the Company completed overseas Carbon Trust carbon footprint certifications for its eSSD and client SSD ( cSSD ) products. In 2024, the Company also obtained carbon footprint and water footprint Environmental Product Declaration certifications for its 10 nanometer class 16Gb DDR5 DRAM products and 3D V7 NAND 512Gb TLC products. In 2025, the Company obtained overseas Carbon Trust low carbon product and carbon footprint certifications for a total of 15 DRAM, NAND flash and SSD products, and continues to expand its Environmental Product Declaration and carbon footprint certifications. In addition, the Company has proactively responded to the voluntary carbon market by obtaining carbon reduction performance credit certifications for its HBM products and eSSD products in accordance with the reduction certification standard procedures of the Carbon Reduction Certification Center established by the Korea Chamber of Commerce and Industry to support corporate carbon neutrality. The Company s domestic worksites obtained the ZWTL Gold grade (recycling rate of 95% or above) in 2021, and obtained the highest grade of Platinum (recycling rate of 100%) in 2022. The Company maintained the highest grade in 2025 and continues to make efforts toward the recycling of waste. The Company s overseas worksite in Wuxi, China, obtained the highest grade of Platinum in 2023 and was recertified in 2025. The Chongqing worksite also maintained its Gold grade in 2024, demonstrating its leading waste management capabilities. In addition, in line with the paradigm shift in the government s waste policy, the Company became the first large enterprise to apply the circular resource recognition system in 2019, and obtained circular resource certification by establishing a virtuous cycle system for converting discarded IC Trays into resources. From 2023 to 2025, a total of 24 items including Module Trays, Wafer Carriers and Targets were certified, and the Company is pursuing new circular resource recognition in 2026 for the purpose of converting waste into resources. The Company plans to continue expanding eco-friendly certifications and providing eco-friendly information to stakeholders going forward. c. Other Environmental Protection Policies In May 2009, in order to ensure transparency and integrity in environmental management, the Company formed the Environmental Management Verification Committee composed of the Korea Federation for Environmental Movement, a leading domestic NGO, and environmental management experts, and conducted verification of the Company s environmental management performance and published the Environmental Management Verification Committee report. Beginning in 2010, the Verification Committee was reorganized as an advisory committee, and the Environmental Management Advisory Committee has been convened to gather opinions on overall environmental management and environmental strategy and reflect them in the Company s management activities. In addition, in 2015, the Company launched the Occupational Health Verification Committee composed of external experts, and identified 127 improvement tasks and carried out improvements through diagnostics in the areas of the work environment and welfare systems, among other health-related areas. Beginning in November 2017, under the supervision of the Occupational Health Verification Committee, the implementation level of the improvement tasks was evaluated, and the final verification results report was received in August 2018. The Company launched its Occupational Health Advancement Sustainability Committee in June 2017 to achieve leading and sustainable advancement in occupational health. The committee is pursuing detailed tasks through subcommittees for health, environment and justice in accordance with its core principle of pursuing the health of organizational members, a safe environment and a just society in a harmonious and sustainable manner. 25 III. FINANCIAL INFORMATION 1. Summary Financial Information (Consolidated and Separate) A. Summary Financial Information (Consolidated) Below is the summary consolidated financial information of the Company as of June 30, 2026, December 31, 2025 and December 31, 2024 and for the six months ended June 30, 2026 and for the years ended December 31, 2025 and 2024. The Company s interim consolidated financial statements as of June 30, 2026 and December 31, 2025 and for the six months ended June 30, 2026 and 2025, which are prepared in accordance with K-IFRS, are attached hereto. (Unit: in millions of Won) As of June 30, 2026 As of December 31, 2025 As of December 31, 2024 Assets Current Assets 156,155,954 69,458,073 42,278,887 Cash and Cash Equivalents 26,835,986 14,923,766 11,205,117 Short-term Financial Instruments 22,397,559 14,679,719 2,382,010 Short-term Investment Assets 38,724,378 5,338,768 569,236 Trade Receivables, net 47,821,395 18,199,078 13,019,006 Inventories, net 17,985,706 14,289,390 13,313,937 Others 2,390,930 2,027,352 1,789,581 Non-Current Assets 192,706,260 106,649,586 77,576,322 Investments in Associates and Joint Ventures 1,334,773 1,320,927 1,940,663 Long-term Investment Assets 85,309,524 14,547,099 4,041,276 Property, Plant and Equipment, net 88,889,146 77,502,704 60,157,474 Intangible Assets, net 4,283,131 4,049,402 4,018,847 Others 12,889,686 9,229,454 7,418,062 Total Assets 348,862,214 176,107,659 119,855,209 Liabilities Current Liabilities 60,257,051 37,378,999 24,965,444 Non-Current Liabilities 25,911,935 18,061,909 20,974,061 Total Liabilities 86,168,986 55,440,908 45,939,505 Equity Equity Attributable to Owners of the Parent Company 262,380,610 120,516,178 73,903,394 Capital Stock 3,657,652 3,657,652 3,657,652 Capital Surplus 11,876,156 8,953,714 4,487,123 Accumulated Other Comprehensive Income 4,819,699 2,676,862 2,532,107 Other Equity (242,620 ) (1,348,598 ) (2,191,549 ) Retained Earnings 242,269,723 106,576,548 65,418,061 Non-controlling Interests 312,618 150,573 12,310 Total Equity 262,693,228 120,666,751 73,915,704 (Unit: in millions of Won except per share data and number of consolidated subsidiaries) For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Revenue 131,895,033 97,146,675 66,192,960 Operating Profit 98,152,891 47,206,319 23,467,319 Profit for the Period 134,268,502 42,947,902 19,796,902 Profit for the Period Attributable to Owners of the Parent Company 134,150,412 42,919,287 19,788,681 Profit for the Period Attributable to Non-controlling Interests 118,090 28,615 8,221 Basic Earnings Per Share (Won) 189,546 62,044 28,732 Total Number of Consolidated Subsidiaries 57 53 56 B. Summary Financial Information (Separate) Below is the summary separate financial information of the Company as of June 30, 2026, December 31, 2025 and December 31, 2024 and for the six months ended June 30, 2026 and for the years ended December 31, 2025 and 2024. The Company s interim separate financial statements as of June 30, 2026 and December 31, 2025 and for the six months ended June 30, 2026 and 2025, which are prepared in accordance with K-IFRS, are attached hereto. 26 (Unit: in millions of Won) As of June 30, 2026 As of December 31, 2025 As of December 31, 2024 Assets Current Assets 97,594,880 46,296,938 27,210,351 Cash and Cash Equivalents 4,537,067 2,403,922 2,992,694 Short-term Financial Instruments 22,350,600 14,072,500 1,902,500 Short-term Investment Assets 8,249,648 1,555,767 203,239 Trade Receivables, net 46,949,872 16,354,297 10,342,858 Inventories, net 13,102,529 10,396,303 9,319,917 Others 2,405,164 1,514,149 2,449,143 Non-Current Assets 234,821,893 122,606,991 85,202,229 Investments in Subsidiaries, Associates and Joint Ventures 67,779,077 23,555,649 15,112,071 Long-term Investment Assets 69,709,791 14,285,809 3,644,169 Property, Plant and Equipment, net 77,867,829 67,394,741 48,316,766 Intangible Assets, net 3,484,392 3,232,687 3,172,837 Others 15,980,804 14,138,105 14,956,386 Total Assets 332,416,773 168,903,929 112,412,580 Liabilities Current Liabilities 55,629,927 34,536,586 21,577,947 Non-Current Liabilities 24,713,666 17,048,781 19,607,546 Total Liabilities 80,343,593 51,585,367 41,185,493 Equity Capital Stock 3,657,652 3,657,652 3,657,652 Capital Surplus 11,690,042 8,778,664 4,465,558 Other Equity (242,620 ) (1,348,598 ) (2,191,549 ) Accumulated Other Comprehensive Income (302 ) 8,279 6,428 Retained Earnings 236,968,407 106,222,565 65,288,998 Total Equity 252,073,179 117,318,562 71,227,087 (Unit: in millions of Won except per share data) For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Revenue 122,084,310 86,852,117 55,736,287 Operating Profit 91,903,526 44,007,409 21,331,452 Profit for the Period 129,203,034 42,688,817 17,640,396 Basic Earnings Per Share (Won) 182,556 61,711 25,613 2. Dividends and Others A. Dividend Policy In November 2024, the Board of Directors approved a new shareholder return policy applicable from 2025 through 2027, which has been designed by the Company to pursue a balanced approach between strengthening financial soundness and enhancing shareholder returns, as set forth below. The Company expects to pay a fixed dividend of Won 1,500 per share per annum (distributed in four equal quarterly installments). The Company s previous shareholder return policy had allocated 5% of annual free cash flow to shareholder returns. However, such funds will be prioritized for strengthening financial soundness under the current policy, but the Company expects to provide additional shareholder to the extent its financial soundness is maintained. In addition, the Company plans to consider making early partial shareholder returns if it experiences strong operating results that is expected to generate a meaningful level of free cash flow. Applicable financial soundness criteria include conversion to a net cash inflow position and maintenance of an appropriate level of cash reserves. 27 B. Matters related to Provision of Dividend Predictability (1) Enhancements to Dividend Procedures in the Articles of Incorporation Classification Annual dividends Quarterly and interim dividends Authority for deciding dividend amounts General Meeting of Shareholders Board of Directors Whether it is possible to set the dividend record date after the dividend amount is determined Yes Yes Plans for implementing enhancements to dividend procedures Such enhancement was implemented by amending the Company s Articles of Incorporation at the General Meeting of Shareholders held on March 27, 2024. Such enhancement was implemented by amending the Company s Articles of Incorporation at the General Meeting of Shareholders held on March 27, 2024. (2) Status of dividend amount determination date and dividend record date Classification Fiscal month Dividend status Dividend amount determination date Dividend record date Provision of dividend predictability Note Annual dividend December 2022 Declared January 31, 2023 December 31, 2022 Not provided Quarterly dividend March 2023 Declared April 19, 2023 March 31, 2023 Not provided Quarterly dividend June 2023 Declared July 26, 2023 June 30, 2023 Not provided Quarterly dividend September 2023 Declared October 25, 2023 September 30, 2023 Not provided Annual dividend December 2023 Declared January 24, 2024 December 31, 2023 Not provided Quarterly dividend March 2024 Declared April 24, 2024 March 31, 2024 Not provided Quarterly dividend June 2024 Declared July 26, 2024 June 30, 2024 Not provided Quarterly dividend September 2024 Declared October 29, 2024 September 30, 2024 Not provided Annual dividend December 2024 Declared January 23, 2025 February 28, 2025 Provided Quarterly dividend March 2025 Declared April 23, 2025 May 31, 2025 Provided Quarterly dividend June 2025 Declared July 23, 2025 August 31, 2025 Provided Quarterly dividend September 2025 Declared October 29, 2025 November 30, 2025 Provided Annual dividend December 2025 Declared January 28, 2026 February 28, 2026 Provided Quarterly dividend March 2026 Declared April 22, 2026 May 31, 2026 Provided * Subsequent to June 30, 2026, the Company resolved at the Board of Directors meeting held on August 7, 2026, to pay a dividend of Won 375 per common share for the second quarter of 2026 (total dividend amount: Won 273.3 billion). 28 C. Dividends for the Past Three Fiscal Years (Unit: in millions of Won, except per share data and percentages) Classification As of and for six months ended June 30, 2026 As of and for the year ended December 31, 2025 As of and for the year ended December 31, 2024 Par value per share (Won) 5,000 5,000 5,000 (Consolidated) Profit for the period 134,150,412 42,919,287 19,788,681 (Separate) Profit for the period 129,203,034 42,688,817 17,640,396 Profit per share (Won) 189,546 62,044 28,732 Total cash dividend 539,977 2,104,944 1,520,091 Total stock dividends (Consolidated) Cash dividend payout ratio (%) 0.4 4.9 7.7 Cash dividend yield ratio (%) Common shares 0.03 0.4 1.0 Preferred shares Stock dividend yield ratio (%) Common shares Preferred shares Cash dividend per share (Won) Common shares 750 3,000 2,204 Preferred shares Stock dividend per share (share) Common shares Preferred shares * The amounts above are based on the consolidated financial statements. Consolidated profit for the period and the consolidated cash dividend payout ratio were calculated based on profit attributable to owners of the parent company. ** The quarterly dividends were Won 266,652 million (Won 375 per share) for the first quarter of 2026 and Won 273,325 million (Won 375 per share) for the second quarter of 2026. *** The dividend record date for the second quarter of 2026 was set as August 31, 2026 through a Board of Directors meeting in August 2026, and the total cash dividend amount was calculated based on the number of shares eligible for dividends as of the date of the Board of Directors resolution (determination date). The actual total dividend amount to be paid may change based on the number of outstanding shares as of the dividend record date. D. Past Distributions of Dividends Number of consecutive dividends Average dividend yield (%) Quarterly (or interim) dividends Annual dividends Past three years Past five years 14 12 0.8 1.0 * Dividend yield: 0.4% for 2025, 1.0% for 2024, 0.9% for 2023, 1.5% for 2022 and 1.2% for 2021. ** The average dividend yield was calculated using the simple arithmetic average method. The most recent three-year period covers 2023 through 2025, and the most recent five-year period covers 2021 through 2025. *** The number of consecutive dividends includes quarterly dividends for the current period and annual dividends for the most recent fiscal year. **** The Company has paid consecutive annual dividends since 2014, and quarterly dividends commenced from the first quarter of 2022. 3. Use of Direct Financing A. Use of Proceeds from Public Offerings (As of June 30, 2026) (Unit: in millions of Won) Category Bond series Payment date Planned use of proceeds Actual use of proceeds Reasons for difference Use Amount Use Amount Corporate bond Series 225-1 April 8, 2024 Repayment of debt 350,000 Repayment of debt 350,000 Corporate bond Series 225-2 April 8, 2024 Repayment of debt 300,000 Repayment of debt 300,000 Corporate bond Series 225-3 April 8, 2024 Repayment of debt 100,000 Repayment of debt 100,000 Corporate bond Series 226-1 January 20, 2025 Repayment of debt 440,000 Repayment of debt 440,000 Corporate bond Series 226-2 January 20, 2025 Repayment of debt 190,000 Repayment of debt 190,000 Corporate bond Series 226-3 January 20, 2025 Repayment of debt 70,000 Repayment of debt 70,000 * Does not include overseas bonds for which a domestic securities registration statement has not been filed. 29 4. Other Matters Related to Financial Information A. Restatement of the Financial Statements Not applicable. B. Key Terms of Debt Securities The following are key terms and conditions of bonds issued by the Company as of June 30, 2026. The compliance status is as of June 30, 2026. (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 220-4 May 9, 2019 May 9, 2029 250,000 April 25, 2019 DB Financial Investment Co., Ltd., CM Finance Team 2 (+82-2-369-3384) Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 221-3 February 14, 2020 February 14, 2027 130,000 February 4, 2020 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 221-4 February 14, 2020 February 14, 2030 230,000 February 4, 2020 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 30 (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 223-3 April 13, 2021 April 13, 2028 80,000 April 1, 2021 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 223-4 April 13, 2021 April 13, 2031 190,000 April 1, 2021 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 224-2 February 14, 2023 February 14, 2028 780,000 February 2, 2023 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 224-3 February 14, 2023 February 14, 2030 100,000 February 2, 2023 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 224-4 February 14, 2023 February 14, 2033 80,000 February 2, 2023 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) 31 Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 225-1 April 8, 2024 April 8, 2027 350,000 March 27, 2024 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 225-2 April 8, 2024 April 8, 2029 300,000 March 27, 2024 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 225-3 April 8, 2024 April 8, 2031 100,000 March 27, 2024 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 32 (Unit: in millions of Won) Name Issue date Maturity date Principal amount (millions of Won) Date of Fiscal Agency Agreement Fiscal agent Unsecured Won-denominated public bond Series 226-1 January 20, 2025 January 20, 2028 440,000 January 8, 2025 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 226-2 January 20, 2025 January 20, 2030 190,000 January 8, 2025 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Unsecured Won-denominated public bond Series 226-3 January 20, 2025 January 20, 2032 70,000 January 8, 2025 Korea Securities Finance Corporation, Trust Division, Corporate Bond Administration Team (+82-2-3770-8556) Maintenance of Financial Ratio Key Term Debt ratio no greater than 500% Compliance Status Compliant Restriction on Liens Key Term Not to exceed 500% of equity Compliance Status Compliant Restriction on Disposition of Assets Key Term Prohibition on disposal of assets equal to or exceeding 100% of total assets Compliance Status Compliant Restriction on Changes of Ownership Structure Key Term Prohibition on occurrence of events constituting a change in ownership structure Compliance Status Compliant Submission of Compliance Certificate Compliance Status Submitted on April 15, 2026 33 C. Financial Information by Region (Based on Location of Entity) (Unit: in millions of Won, except per share data and percentages) Classification As of and for six months ended June 30, 2026 As of and for the year ended December 31, 2025 As of and for the year ended December 31, 2024 Home country (Republic of Korea) 1. Revenue Sales to external customers 660,608 1,932,342 1,904,112 Inter-regional internal sales 122,779,541 87,467,888 56,139,057 Sub-total 123,440,149 89,400,230 58,043,169 2. Operating profit 91,952,251 43,995,989 21,266,459 3. Assets 334,277,531 171,090,841 114,681,407 China 1. Revenue Sales to external customers 32,478,276 19,136,237 15,533,563 Inter-regional internal sales 3,702,399 6,931,348 6,856,495 Sub-total 36,180,675 26,067,585 22,390,058 2. Operating profit 1,061,222 1,195,214 611,057 3. Assets 41,997,006 29,579,025 28,928,590 Asia 1. Revenue Sales to external customers 11,387,228 7,215,598 5,381,439 Inter-regional internal sales 83,437 77,509 55,631 Sub-total 11,470,665 7,293,107 5,437,070 2. Operating profit 46,434 24,608 26,045 3. Assets 6,654,444 2,712,176 2,021,116 United States 1. Revenue Sales to external customers 84,564,776 66,885,115 41,961,072 Inter-regional internal sales 3,314,761 1,276,896 656,480 Sub-total 87,879,537 68,162,011 42,617,552 2. Operating profit 7,099,090 1,942,228 1,737,254 3. Assets 36,444,162 12,336,085 9,635,749 Europe 1. Revenue Sales to external customers 2,804,146 1,977,383 1,412,774 Inter-regional internal sales 43,992 72,272 59,911 Sub-total 2,848,138 2,049,655 1,472,685 2. Operating profit 9,856 15,804 8,534 3. Assets 1,413,536 675,264 370,531 Total 1. Revenue Sales to external customers 131,895,033 97,146,675 66,192,960 Inter-regional internal sales 129,924,130 95,825,913 63,767,574 Sub-total 261,819,163 192,972,588 129,960,534 2. Operating profit Consolidation adjustments (2,015,961 ) 32,476 (182,030 ) Sub-total 98,152,891 47,206,319 23,467,319 3. Assets Consolidation adjustments (71,924,466 ) (40,285,732 ) (35,782,184 ) Sub-total 348,862,213 176,107,659 119,855,209 34 D. Loss Allowance (1) Loss allowance of trade and other receivables (Unit: in millions of Won, except percentages) For the six months ended June 30, 2026 Gross amount Loss allowance Percentage Accounts receivable trade 47,823,937 2,542 0.01 % Loans 195,170 18 0.01 % Accounts receivable other 180,013 76 0.04 % Accrued income 288,690 Guarantee deposits 182,312 Deposits bearing interest 1,267 986 77.82 % Total 48,671,389 3,622 0.01 % (Unit: in millions of Won, except percentages) For the year ended December 31, 2025 Gross amount Loss allowance Percentage Accounts receivable trade 18,201,786 2,707 0.01 % Loans 306,872 18 0.01 % Accounts receivable other 163,611 76 0.05 % Accrued income 156,266 Guarantee deposits 179,462 Deposits bearing interest 1,180 918 77.80 % Total 19,009,177 3,719 0.02 % (Unit: in millions of Won, except percentages) For the year ended December 31, 2024 Gross amount Loss allowance Percentage Accounts receivable trade 13,020,351 1,345 0.01 % Loans 206,958 8 0.00 % Accounts receivable other 310,600 94 0.03 % Accrued income 27,519 Guarantee deposits 192,104 Deposits bearing interest 1,201 933 77.69 % Total 13,758,733 2,380 0.02 % (2) Movements in loss allowance of trade and other receivables (Unit: in millions of Won) For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Beginning balance 3,719 2,380 10,669 Net write-offs ((a) (b) ± (c)) (2,821 ) (7,109 ) (a) Write-offs (amount of written off receivables) (2,821 ) (7,109 ) (b) Recovery of written-off receivables (c) Other Increase/reversal of loss allowance (97 ) 4,160 (1,180 ) Ending balance 3,622 3,719 2,380 (3) Policies for loss allowance Individually determined by counterparty based on actual assessed collectability Classification Basis for determination Trade receivables Normal receivables Determined based on historical experience rates. Long-term receivables Individually assessed after reviewing actual collectability by customer. - If collateral exists: where collectability is uncertain, 100% provision is made for the unsecured portion. - If no collateral exists: where collectability is uncertain, 100% provision is made. * Excludes allowance provisioning for trade receivables of consolidated subsidiaries. 35 (4) Aging of accounts receivable (Unit: in millions of Won, except percentages) As of June 30, 2026 Six months or less From six months to one year From one year to three years More than three years Total Amount 47,823,937 47,823,937 Percentage 100 % 100 % E. Inventories (1) Detailed categories of inventories (Unit: in millions of Won, except percentages and turnover ratios) Account category For the six months ended June 30, 2026 For the year ended December 31, 2025 For the year ended December 31, 2024 Merchandise 6,728 5,303 6,775 Finished goods 3,065,710 2,406,965 2,514,283 Work-in-process 11,078,802 9,207,437 8,622,764 Raw materials 2,410,930 1,489,312 1,461,026 Supplies 1,185,068 902,612 586,299 Goods in transit 238,468 277,760 122,789 Total 17,985,706 14,289,390 13,313,937 Percentage of inventories to total assets [Inventories / Total assets] 5.2 % 8.1 % 11.1 % Inventory turnover [Cost of sales / { ( Beginning balance of inventories + Ending balance of inventories ) / 2}] 3.1 2.8 2.6 (2) Reporting of inventories Details of physical due diligence Date of physical due diligence Attending auditor Finished goods January 1, 2026 KPMG Samjong Fab work-in-process, B/E work-in-process, module work-in-process, outsourced vendors Raw and ancillary materials Finished goods January 1, 2025 KPMG Samjong Fab work-in-process, B/E work-in-process, module work-in-process, outsourced vendors Raw and ancillary materials Finished goods January 1, 2024 KPMG Samjong Fab work-in-process, B/E work-in-process, module work-in-process, outsourced vendors Raw and ancillary materials (3) Details of long-term stagnant inventory If the market value of inventories has declined below the acquisition cost, the lower of cost or market method is applied to determine the carrying amount of inventories on the statement of financial position. The valuation details of inventories as of June 30, 2026 are as follows. (Unit: in millions of Won) Account category Acquisition cost Carrying amount Valuation allowance Balance Merchandise 9,432 9,432 (2,704 ) 6,728 Finished goods 3,203,472 2,203,472 (137,762 ) 3,065,710 Work-in-process 11,125,075 11,125,075 (46,273 ) 11,078,802 Raw materials 2,435,016 2,435,016 (24,085 ) 2,410,930 Supplies 1,387,689 1,387,689 (202,621 ) 1,185,068 Goods in transit 238,468 238,468 238,468 Total 18,399,151 18,399,151 (413,445 ) 17,985,706 36 IV. MANAGEMENT S DISCUSSION AND ANALYSIS Omitted in semi-annual reports in accordance with applicable Korean disclosure rules. 37 V. AUDITOR S OPINION 1. Independent Auditors and Audit Opinions A. Independent Auditor and Audit Opinion (Separate and Consolidated) Period Classification Independent auditor Opinion Emphasis of matter Critical audit matters Six months ended June 30, 2026 Review report (Separate) KPMG Samjong Unqualified Review report (Consolidated) KPMG Samjong Unqualified Year ended December 31, 2025 Audit report (Separate) KPMG Samjong Unqualified (Separate financial statements) Review of the appropriateness of the commencement timing of depreciation for machinery and equipment Audit report (Consolidated) KPMG Samjong Unqualified (Consolidated financial statements) Review of the appropriateness of the commencement timing of depreciation for machinery and equipment Year ended December 31, 2024 Audit report (Separate) KPMG Samjong Unqualified (Separate financial statements) Fair value assessment of financial assets related to the investment in KIOXIA Holdings Corporation included in long-term investment assets Audit report (Consolidated) KPMG Samjong Unqualified (Consolidated financial statements) Fair value assessment of financial assets related to the investment in KIOXIA Holdings Corporation included in long-term investment assets B. Audit Services Contracts with Independent Auditors (Unit: in millions of Won except number of hours) Period Auditors Contents Audit contract Actual performance Fee Total number of hours Fee Total number of hours Six months ended June 30, 2026 KPMG Samjong Quarterly and semi-annual review 3,200 30,000 1,091 10,226 Separate financial statements audit Consolidated financial statements audit Internal accounting system audit Year ended December 31, 2025 KPMG Samjong Quarterly and semi-annual review 3,100 29,600 3,100 28,888 Separate financial statements audit Consolidated financial statements audit Internal accounting system audit Year ended December 31, 2024 KPMG Samjong Quarterly and semi-annual review 2,950 28,500 2,950 27,663 Separate financial statements audit Consolidated financial statements audit Internal accounting system audit 38 C. Non-Audit Services Contracts with Independent Auditors (Unit: in millions of Won) Period Contract date Service provided Service duration Fee Remarks Six months ended June 30, 2026 April 7, 2026 Net Zero advisory service Apr. 7, 2026 Jul. 31, 2026 200 KPMG Samjong March 9, 2026 Market research on raw material prices Mar. 9, 2026 Apr. 30, 2026 210 KPMG Samjong February 23, 2026 Advisory service related to ESG disclosures Feb. 23, 2026 Dec. 18, 2026 500 KPMG Samjong Year ended December 31, 2025 November 10, 2025 Consulting for Global Compliance adherence Nov. 10, 2025 Dec. 31, 2025 99 KPMG Samjong July 31, 2025 Service related to bond issuance Jul. 31, 2025 Sep. 30, 2025 200 KPMG Samjong July 7, 2025 Consulting for Global Compliance adherence Jul. 7, 2025 Nov. 7, 2025 180 KPMG Samjong May 15, 2025 Tax advisory service May 15, 2025 Jul. 31, 2025 200 KPMG Samjong April 23, 2025 Tax advisory service related to international transactions Apr. 23, 2025 Dec. 31, 2030 180 KPMG Samjong April 2, 2025 Consulting for Global Compliance adherence Apr. 2, 2025 Jun. 30, 2025 240 KPMG Samjong March 24, 2025 Advisory service related to ESG disclosures Mar. 24, 2025 Oct. 31, 2025 600 KPMG Samjong Year ended December 31, 2024 November 28, 2024 Market research on raw material prices Nov. 28, 2024 Dec. 31, 2024 130 KPMG Samjong September 20, 2024 Advisory serviced related to ESG disclosures Sep. 20, 2024 Dec. 20, 2024 500 KPMG Samjong July 24, 2024 Tax advisory service related to international transactions Jul. 24, 2024 Dec. 31, 2029 180 KPMG Samjong June 10, 2024 Advisory service related to international standard certification support Jun. 10, 2024 Jul. 9, 2024 30 KPMG Samjong May 1, 2024 Tax documentation support May 1, 2024 Dec. 31, 2024 264 KPMG Samjong January 2, 2024 Service related to bond issuance Jan. 2, 2024 Jan. 31, 2024 200 KPMG Samjong D. Discussions between Audit Committee and Independent Auditors Date Attendance Method Key matters discussed February 23, 2026 Company s Audit Committee: 3 Auditor: 3 In-person 1. Key matters in the annual financial statement audit 2. Results of the financial statement audit 3. Results of the audit of the internal accounting system 4. Other matters May 7, 2026 Company s Audit Committee: 4 Auditor: 3 Video conference 1. Key matters from the first quarter review 2. Annual audit schedule and plan 3. Preliminary group audit scoping 4. Other matters 39 VI. CORPORATE ORGANIZATION INCLUDING BOARD OF DIRECTORS 1. Board of Directors A. Overview of the Composition of the Board of Directors The Board of Directors is composed of ten members: two executive directors, two non-executive directors and six independent directors. The Board of Directors operates the following four committees: Independent Director Candidate Nomination Committee, Audit Committee, Sustainable Management Committee and Human Resources and Compensation Committee. Total number of directors Executive directors Independent directors Non-executive director 10 Nohjung Kwak, Seon Yong Cha Deog Kyoon Jeong, Zeong Won Kim, Donghoon Yang, Hyun Chul Sohn, Seung Beom Koh, Gahng Gook Choi Yong Ho Jang, Jung Kyu Kim B. Committees within Board of Directors (1) Committee structure a. Audit Committee (as of June 30, 2026) Total number of persons Names of member directors Task 4 Donghoon Yang (chairperson), Seung Beom Koh, Zeong Won Kim and Gahng Gook Choi Review of the Company s business affairs and accounts and monitoring of the various matters carried out by the Board of Directors b. Independent Director Candidate Nomination Committee (as of June 30, 2026) Total number of persons Names of member directors Task 3 Deog Kyoon Jeong (chairperson), Donghoon Yang and Seung Beom Koh Review and recommendation of candidates for independent directors for election at the General Meeting of Shareholders c. Sustainable Management Committee (as of June 30, 2026) Total number of persons Names of member directors Task 5 Zeong Won Kim (chairperson), Hyun Chul Sohn, Gahng Gook Choi, Seon Yong Cha and Jung Kyu Kim 1. Deliberation on the Company s compliance management system and activities including antitrust, anti-corruption and subcontracting matters. 2. Deliberation on matters related to the Company s creation of social value. 3. Deliberation and resolution on the following matters related to the Company s sustainability or SHE (Safety, Health, Environment): (1) Sustainability materiality assessment procedures, criteria and results (2) Medium- to long-term sustainability related goals (3) Formulation and implementation review of strategies related to goals determined pursuant to (2) above (4) Semi-annual performance and future plans with respect to the occupational safety and health plan resolved by the Board of Directors (5) SHE-related matters deemed likely to have an impact on business conditions 4. Other matters that the committee has determined require deliberation in relation to compliance management or sustainability and has referred to the committee for consideration. 40 d. Human Resources and Compensation Committee (as of June 30, 2026) Total number of persons Names of member directors Task 4 Deog Kyoon Jeong (chairperson), Zeong Won Kim, Hyun Chul Sohn and Yong Ho Jang 1. Limit on director compensation to be submitted for approval at the Annual General Meeting of Shareholders. 2. Grant of stock options to management, including registered and unregistered officers. 3. Specific compensation for executive directors. 4. Evaluation and compensation of the representative director. 5. Screening of executive director candidates. 6. Other matters not specified in the foregoing items that the representative director deems significant and refers to the Committee. 2. Shareholders Exercise of Voting Rights A. Voting System The Company s Articles of Incorporation provides that each shareholder is entitled to one vote per share. The Company adopted the electronic voting system by resolution of the Board of Directors on January 23, 2019, and introduced the electronic voting system beginning with the 71st Annual General Meeting of Shareholders held in 2019. In addition, at the 78th Annual General Meeting of Shareholders held in 2026, the provision excluding the cumulative voting system was removed. The Company has not adopted the written voting system. (As of June 30, 2026) Classification of Voting System Cumulative voting system Written voting system Electronic voting system Adoption status Selected Not adopted Adopted Implementation status Not implemented Not implemented Continuously implemented since the 71st Annual General Meeting of Shareholders 41 VII. SHAREHOLDERS 1. Shareholdings of the Largest Shareholder and Related Persons A. Shareholdings of the Largest Shareholder and Related Persons (As of June 30, 2026) (Unit: in shares and percentages) Name Relationship Type of share Number of shares owned and ownership ratio Note Beginning of period End of period Number of shares Ownership ratio Number of shares Ownership ratio SK square Co., Ltd. Largest shareholder Common share 146,100,000 20.07 146,100,000 20.50 Nohjung Kwak Related person Common share 5,770 0.00 14,312 0.00 Stock grant Seon Yong Cha Related person Common share 0 0.00 6,834 0.00 Newly appointed Seung Beom Koh Related person Common share 0 0.00 65 0.00 Stock grant Deog Kyoon Jeong Related person Common share 988 0.00 1,028 0.00 Stock grant Zeong Won Kim Related person Common share 988 0.00 1,028 0.00 Stock grant Donghoon Yang Related person Common share 572 0.00 612 0.00 Stock grant Hyun Chul Sohn Related person Common share 572 0.00 612 0.00 Stock grant Gahng Gook Choi Related person Common share 0 0.00 40 0.00 Stock grant Hyun Ahn Related person Common share 4,407 0.00 0 0.00 Resignation Ae-Ra Han Related person Common share 1,806 0.00 0 0.00 Expiration of term Total Common share 146,115,103 20.07 146,124,531 20.50 * Beginning balance is as of January 1, 2026, and ending balance is as of June 30, 2026. ** As a result of the disposal of 15,300,000 treasury shares on February 9, 2026, the ownership percentage has changed. B. Overview of the Largest Shareholder As of June 30, 2026, the Company s largest shareholder was SK square Co., Ltd., which owned 146,100,000 shares (shareholding ratio of 20.50%). Including specially related persons, the total number of shares held amounted to 146,124,531 shares (shareholding ratio of 20.50%). C. Overview of the Largest Shareholder of the Largest Shareholder As of June 30, 2025, the Company s largest shareholder of the largest shareholder was SK Inc. SK Inc. was established on April 13, 1991 and was listed on the KRX Market of teh Korea Exchange on November 11, 2009. SK Inc. is located at 26, Jong-ro, Jongno-gu, Seoul, Korea. SK Inc. s telephone number is +82-2-2121-5114 and its website is https://www.sk-inc.com/. 13 of SK Inc. s consolidated subsidiaries are publicly listed in Korea. 42 D. Changes in Shareholdings of the Largest Shareholder and Related Persons Changes in shareholdings of the largest shareholder are as follows: (As of June 30, 2026) (Unit: in shares and percentages) Largest shareholder Date of the change Shares held* Holding ratio Change details SK square Co., Ltd. February 25, 2022 146,131,909 20.07 Grant of treasury shares (executive directors Jung-Ho Park and Seok-Hee Lee) March 30, 2022 146,121,434 20.07 Exclusion of related parties (executive directors Seok-Hee Lee and Jong Hun Oh) Addition of related parties (executive directors Nohjung Kwak and Jong-won Noh) May 2, 2022 146,124,674 20.07 Grant of treasury shares (six outside directors) May 3, 2022 146,125,674 20.07 Open-market purchase (executive director Nohjung Kwak) February 24, 2023 146,132,237 20.07 Grant of treasury shares (executive directors Jung-Ho Park, Nohjung Kwak and Jong-won Noh) March 28, 2023 146,130,570 20.07 Exclusion of related party (executive director Jong-won Noh) March 29, 2023 146,129,920 20.07 Exclusion of related party (outside director Chang-Hwan Shin) August 4, 2023 146,133,332 20.07 Grant of treasury shares (seven outside directors) March 22, 2024 146,132,006 20.07 Exclusion of related party (outside director Tae-Hwa Yoon) March 27, 2024 146,110,333 20.07 Exclusion of related parties (executive director Jung-Ho Park and outside directors Ho-Keun Song and Hyun-Jae Cho) Addition of related party (executive director Hyun Ahn) April 26, 2024 146,113,064 20.07 Grant of treasury shares (executive director Nohjung Kwak and six outside directors) February 3, 2025 146,115,588 20.07 Grant of treasury shares (executive directors Nohjung Kwak and Hyun Ahn) March 27, 2025 146,113,535 20.07 Exclusion of related parties (outside director director Yung-Ku Ha) April 25, 2025 146,115,103 20.07 Grant of treasury shares (five outside directors) January 29, 2026 146,115,505 20.07 Grant of treasury shares (executive directors Nohjung Kwak and Hyun Ahn) March 26, 2026 146,113,730 20.50 ** Exclusion of related parties (executive director Hyun Ahn and outside director Ae-Ra Han) Addition of related party (executive director Seon Yong Cha) April 7, 2026 146,118,388 20.50 Exercise of stock options (executive directors Nohjung Kwak and Seon Yong Cha) May 6, 2026 146,124,531*** 20.50 Grant of treasury shares (executive director Nohjung Kwak and six independent directors) * Based on changes in the largest shareholder during the past five years. ** As a result of the retirement of 15,300,000 treasury shares on February 9, 2026, the ownership percentage has correspondingly changed in subsequent periods. *** The number of shares of SK square Co., Ltd. shown above represents the aggregate of 146,100,000 shares, which were originally held by SK Telecom Co., Ltd. and transferred in full to SK square Co., Ltd., a newly established company formed through the horizontal spin-off of SK Telecom Co., Ltd. effective November 2, 2021, and 24,531 shares held by related persons. 43 2. Distribution of Shares A. Shareholders with Ownership of 5% or Greater (As of June 30, 2026) (Unit: in shares and percentages) Name (title) Common share Number of shares Ownership ratio SK square Co., Ltd.* 146,124,531 20.50 % National Pension Service** 57,439,774 8.06 % BlackRock Fund Advisors*** 36,407,157 5.11 % Shareholdings under the Employee Stock Ownership Program 1,091,775 0.15 % * The number of shares of SK square Co., Ltd. shown above represents the aggregate of 146,100,000 shares, which were originally held by SK Telecom Co., Ltd. and succeeded in full by SK square Co., Ltd., a newly established company formed through the horizontal spin-off of SK Telecom Co., Ltd. effective November 2, 2021, and 24,531 shares held by related persons. ** The number of shares and ownership ratio of National Pension Service are as of December 31, 2025. *** The number of shares and ownership ratio of BlackRock Fund Advisors are as of February 10, 2026. The number of shares and ownership ratio of BlackRock Fund Advisors are based on the shareholding status as set forth in the most recent Report on Significant Holdings of Stocks, etc. filed by BlackRock Fund Advisors, and may differ from the current shareholding status. B. Minority Shareholders (As of June 30, 2026) (Unit: in shares and percentages) Classification Shareholders Ownership Number of minority shareholders Total number of shareholders Ratio (%) Number of shares owned by minority shareholders Total number of shares issued Ratio (%) Minority shareholders * 3,461,526 3,461,533 99.99 484,497,952 712,702,365 67.98 * Shareholders who hold less than 1% of total voting shares issued. 3. Share Price and Trading Volume in the Last Six Months A. Domestic Securities Market (Unit: in Won and shares) Types January 2026 February 2026 March 2026 April 2026 May 2026 June 2026 Common stock Highest 909,000 1,099,000 1,056,000 1,300,000 2,333,000 2,919,000 Lowest 677,000 830,000 807,000 830,000 1,447,000 1,911,000 Average 761,476 922,706 937,667 1,102,364 1,888,667 2,432,286 Daily transaction volume Highest 7,875,195 7,634,191 9,253,420 6,709,356 9,160,593 8,050,335 Lowest 2,762,369 3,125,590 3,326,240 2,769,753 3,135,190 3,644,469 Monthly transaction volume 97,117,009 77,055,002 322,016,908 87,540,280 111,814,486 120,577,004 B. Foreign Securities Market (Luxembourg Stock Exchange) (Unit : in US$ and number of depositary receipts) Types January 2026 February 2026 March 2026 April 2026 May 2026 June 2026 Depositary receipt Highest 630 790 706 896 1,590 1,940 Lowest 469 570 548 574 986 1,295 Daily transaction volume Highest 945 3,121 5,684 2,231 3,244 6,913 Lowest 3 159 208 318 314 337 Monthly transaction volume 93.4 839.0 1,039.8 865.2 1,687.8 1,899.3 44 VIII. EMPLOYEES AND DIRECTORS 1. Officers and Employees A. Employees (As of June 30, 2026) (Unit: in persons and millions of Won) Business segment Gender Number of employees Average length of service (years) Aggregate wage for the reporting period Average wage per person Employees without a fixed term of employment Employees with a fixed term of employment Total Total Part-time employees Total Part-time employees Semiconductors Male 24,178 60 24,238 12.1 3,693,527 157 Semiconductors Female 11,864 48 11,912 15.7 1,382,994 118 Total 36,042 108 36,150 13.3 5,076,521 144 * The number of employees include those employed by the parent company, and excludes the chairman and directors. ** As of June 30, 2026, the Company also had 17,472 Non-affiliated workers, of which 12,105 were male and 5,367 were female. The number of such employees is counted once per year in accordance with applicable disclosure requirements. B. Compensation of Unregistered Officers (As of June 30, 2026) (Unit: in persons and millions of Won) Number of unregistered officers Aggregate wage for the first six months of 2026 Average wage per person 273 372,239 1,364 2. Compensation of Directors A. Amount Approved at the General Meeting of Shareholders (Unit: in persons and millions of Won) Fiscal year Classification Number of directors Aggregate Amount Approved Remarks Six months ended June 30, 2026 Directors 10 15,000 (Note 1 ) Year ended December 31, 2025 Directors 9 15,000 Year ended December 31, 2024 Directors 10 20,000 (1) At the General Meeting of Shareholders held on March 25, 2026, the director compensation limit for 2026 was approved at Won 15 billion, and separately, share-based compensation for long-term performance incentives in the form of 30,000 treasury shares was also approved. B. Amount Paid (1) Total Amount (Unit: in persons, shares and millions of Won) Fiscal year Number of directors Total compensation Average compensation per director Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Stock options Other share-based compensation Exercisable quantity Non- exercisable quantity Remaining amount* Quantity not yet delivered Market value** Six months ended June 30, 2026 10 33,561 4,195 26,622 18,081 7,936 75,691 200,581 (Note 1), (Note 2) Year ended December 31, 2025 9 7,104 1,015 847 29,236 12,178 76,520 49,814 (Note 1) Year ended December 31, 2024 10 4,292 537 466 29,236 1,824 76,520 13,307 (Note 1) * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for all directors and auditors as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. (1) The number of directors includes two non-executive directors who did not receive any compensation. The average compensation per director excludes two non-executive directors who did not receive any compensation. (2) Of the total compensation for the six months ended June 30, 2026, Won 26.2 billion represents the cash-equivalent value of long-term performance incentive share-based compensation, which was separately approved on a share quantity basis at the General Meeting of Shareholders, and amounts attributable to the exercise of stock options. 45 (2) Amount by Classification (Unit: in persons, shares and millions of Won) Classification Fiscal year Number of directors Total compensation Average compensation per director Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Stock options Other Share-Based Compensation Exercisable quantity Non-Exercisable Quantity Remaining Amount* Quantity Not Yet Delivered Market Value** Executive Directors Six months ended June 30, 2026 4 32,899 16,450 26,239 18,081 7,936 75,691 200,581 (Note 1), (Note 2) Year ended December 31, 2025 4 6,290 3,145 558 29,236 12,178 76,520 49,814 (Note 1) Year ended December 31, 2024 4 3,336 1,668 137 29,236 1,824 76,520 13,307 (Note 1) Independent (Outside) Directors (Excluding Audit Committee Members) Six months ended June 30, 2026 2 216 108 116 Year ended December 31, 2025 2 303 152 103 Year ended December 31, 2024 2 326 148 100 Audit Committee Members Six months ended June 30, 2026 4 446 122 268 Year ended December 31, 2025 3 511 157 186 Year ended December 31, 2024 4 630 158 229 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for all directors and auditors as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. (1) The number of directors includes two non-executive directors who did not receive any compensation. The average compensation per director excludes two non-executive directors who did not receive any compensation. (2) Of the total compensation for the six months ended June 30, 2026, Won 26.2 billion represents the cash-equivalent value of long-term performance incentive share-based compensation, which was separately approved on a share quantity basis at the General Meeting of Shareholders, and amounts attributable to the exercise of stock options. 46 (3) Amount by Type of Income (Unit: in millions of Won) Classification Fiscal year Salary Bonus Gains from exercise of stock options Other share- based compensation paid Other earned income Retirement income Other income Executive Directors Six months ended June 30, 2026 1,812 22,328 8,757 2 Year ended December 31, 2025 2,290 3,909 91 Year ended December 31, 2024 2,372 892 72 Independent Directors (Excluding Audit Committee Members) Six months ended June 30, 2026 216 Year ended December 31, 2025 303 Year ended December 31, 2024 326 Audit Committee Members Six months ended June 30, 2026 446 Year ended December 31, 2025 511 Year ended December 31, 2024 630 3. Individual Compensation of Directors and Officers A. Remuneration for Individual Directors (among those Paid over Won 500 Million per Year) (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Nohjung Kwak (President) Six months ended June 30, 2026 26,095 Stock Option 4,514 4,379 5,199 86,548 2,365 74,087 196,330 Stock Appreciation Rights ( SARs ) 11,640 16,843 Performance Stock Unit ( PSU ) (2023) 624 537 Year ended December 31, 2025 4,239 Stock Grant 950 210 5,311 84,730 2,365 72,315 47,077 5,383 136,060 2,121 Year ended December 31, 2024 1,986 Stock Grant 804 137 5,311 84,730 438 72,315 12,576 5,383 136,060 238 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each director and Audit Committee member whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. 47 (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining Amount* Quantity Not Yet Delivered Market Value** Seon Yong Cha (President) Six months ended June 30, 2026 10,940 Stock Option 4,514 4,379 5,199 86,548 2,365 1,604 4,251 PSU (2023) 5,554 4,610 7,683 124,220 3,206 Year ended December 31, 2025 2,168 Stock Grant 629 139 5,311 84,730 2,365 4,205 2,737 5,383 136,060 2,121 7,848 121,610 3,206 Seon Yong Cha (Vice President) Year ended December 31, 2024 824 5,311 84,730 438 4,205 731 5,383 136,060 238 7,848 121,610 472 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each director and Audit Committee member whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. (1) Status of stock option grants (As of June 30, 2026) (Unit: in shares and Won) Grantee Date of grant Method of grant Initially granted Changes during reporting period Total changes Unexercised as of end of reporting period Exercise period Exercise price Exercised Cancelled Exercised Cancelled Nohjung Kwak March 20, 2020 Issuance of treasury shares, cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Nohjung Kwak March 30, 2021 Issuance of treasury shares, cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Nohjung Kwak March 30, 2022 Issuance of treasury shares, cash settlement 11,773 11,773 March 31, 2024 March 30, 2027 121,610 Seon Yong Cha March 20, 2020 Issuance of treasury shares, cash settlement 5,311 112 112 5,199 March 31, 2023 March 30, 2026 138,980 Seon Yong Cha March 30, 2021 Issuance of treasury shares, cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 124,220 Seon Yong Cha March 30, 2022 Issuance of treasury shares, cash settlement 7,848 165 165 7,683 March 31, 2024 March 30, 2027 124,220 * The Company completed the cancellation of treasury shares in February 2026 to enhance corporate value, and accordingly, the exercise price and quantity of the previously granted stock options were adjusted. 48 (2) Status of other share-based compensation grants (As of June 30, 2026) (Unit: in shares) Grantee Date of grant / payment (cancellation) Type New grants Cumulative grants Shares paid during the reporting period Cumulative changes Unpaid as of end of reporting period Condition for payment Timing of delivery Basis and procedures for grant Paid Cancelled Nohjung Kwak April 27, 2022 SARs * 46,685 11,640 11,640 35,045 Continued service for at least two years from the grant date After the exercise of rights during the period from April 2025 to April 2029 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Nohjung Kwak January 1, 2023 PSU * 29,369 624 624 28,745 Continued service for at least two years from the grant date After January 2026 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Nohjung Kwak January 1, 2024 PSU 10,297 10,297 Continued service for at least two years from the grant date After January 2027 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Seon Yong Cha January 1, 2024 PSU 1,604 1,604 Continued service for at least two years from the grant date After January 2027 Following approval of the Representative Director, a contract was executed with the grantee * Refers to the quantity finalized upon achievement of the payment conditions. B. Composition of Total Remuneration Name Fiscal year Composition Nohjung Kwak Six months ended June 30, 2026 1. Earned income Salary: Won 1,250 million Bonus: Won 20,465 million Gains from exercise of stock options: Won 4,379 million Other share-based compensation: Other earned income: Won 1 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 35,045 shares / Market value: Won 92,869 million - 2023 PSU grant - Undelivered: 28,745 shares / Market value: Won 76,174 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 27,287 million - Stock options - Unexercised: 5,199 shares / Exercise price: Won 86,548 / Exercise period: March 21, 2023 March 20, 2027 49 Year ended December 31, 2025 1. Earned income Salary: Won 1,540 million Bonus: Won 2,695 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 4 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 48,263 shares (virtual) / Market value: Won 31,419 million - 2023 PSU grant - Undelivered: 13,755 shares (virtual) / Market value: Won 8,955 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 6,703 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 Year ended December 31, 2024 1. Earned income Salary: Won 1,400 million Bonus: Won 575 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 11 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 48,263 shares (virtual) / Market value: Won 8,393 million - 2023 PSU grant - Undelivered: 13,755 shares (virtual) / Market value: Won 2,392 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 1,791 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 Seon Yong Cha Six months ended June 30, 2026 1. Earned income Salary: Won 550 million Bonus: Won 6,010 million Gains from exercise of stock options: Won 4,379 million Other share-based compensation: Other earned income: Won 1 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 4,251 million - 2020 stock option grant - Unexercised: 5,199 shares / Exercise price: Won 86,548 / Exercise period: March 21, 2023 March 20, 2027 - 2022 stock option grant - Unexercised: 7,683 shares / Exercise price: Won 124,220 / Exercise period: March 31, 2024 - March 30, 2027 50 Year ended December 31, 2025 1. Earned income Salary: Won 750 million Bonus: Won 1,411 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 7 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 1,693 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 1,044 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Year ended December 31, 2024 1. Earned income Salary: Won 545 million Bonus: Won 275 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 4 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 452 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 279 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 C. Remuneration for the Five Highest-Paid Officers (among those Paid over Won 500 Million per Year) (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Nohjung Kwak (President) Six months ended June 30, 2026 26,095 Stock Option 4,514 4,379 5,199 86,548 2,365 74,087 196,330 SARs 11,640 16,843 PSU (2023) 624 537 Year ended December 31, 2025 4,239 Stock Grant 950 210 5,311 84,730 2,365 72,315 47,077 5,383 136,060 2,121 Year ended December 31, 2024 1,986 Stock Grant 804 137 5,311 84,730 438 72,315 12,576 5,383 136,060 238 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each five highest-paid officer whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. 51 ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Jung-Ho Park (Management Advisor) Six months ended June 30, 2026 16,895 SARs 9,513 13,765 108,717 288,100 PSU (2023) 2,567 2,210 Year ended December 31, 2025 9,610 SARs 13,680 7,770 88,151 57,386 Year ended December 31, 2024 17,486 123,660 21,504 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each five highest-paid officer whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. 52 (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Joon-Ki Choi (Vice President) Six months ended June 30, 2026 13,546 Stock Option 4,367 10,319 958 2,539 PSU (2023) 2,765 2,112 Year ended December 31, 2025 1,231 Stock Grant 800 177 4,709 121,610 1,924 2,209 1,438 Year ended December 31, 2024 738 4,709 121,610 283 2,209 385 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each five highest-paid officer whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Hyun Ahn (President) Six months ended June 30, 2026 11,437 Stock Option 4,575 4,832 5,199 86,548 2,365 4,161 11,027 PSU (2023) 2,997 4,268 7,683 124,220 3,206 Year ended December 31, 2025 2,052 Stock Grant 1,574 348 5,311 84,730 2,365 4,205 2,737 5,383 136,060 2,121 7,848 121,610 3,206 Year ended December 31, 2024 888 5,311 84,730 438 4,205 731 5,383 136,060 238 7,848 121,610 472 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each five highest-paid officer whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. 53 **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. (Unit: in shares and millions of Won) Classification Fiscal year Total compensation Share-based compensation amount included in total compensation Compensation not included in total remuneration (outstanding balance) Remarks Type Quantity Amount Stock options Other share-based compensation Exercisable quantity Exercise price*** Remaining amount* Quantity not yet delivered Market value** Seon Yong Cha (President) Six months ended June 30, 2026 10,940 Stock Option 4,514 4,379 5,199 86,548 2,365 1,604 4,251 PSU (2023) 5,554 4,610 7,683 124,220 3,206 Year ended December 31, 2025 2,168 Stock Grant 629 139 5,311 84,730 2,365 4,205 2,737 5,383 136,060 2,121 7,848 121,610 3,206 Seon Yong Cha (Vice President) Year ended December 31, 2024 824 5,311 84,730 438 4,205 731 5,383 136,060 238 7,848 121,610 472 * Refers to the aggregate amount of liabilities and equity recorded on the statement of financial position in connection with stock options for each five highest-paid officer whose individual compensation is Won 500 million or more per year, as of the end of each fiscal year and reporting period. ** Refers to the quantity not yet delivered multiplied by the closing price as of the end of each fiscal year. Closing prices as of the end of each fiscal year: Won 173,900 as of December 30, 2024, Won 651,000 as of December 30, 2025 and Won 2,650,000 as of June 30, 2026. *** The exercise price of stock options under Compensation not included in total compensation (outstanding balance) is denominated in Won. **** The information set forth in columns Share-based compensation amount included in total compensation and Compensation not included in total remuneration (outstanding balance) is independently stated in accordance with the criteria for each respective item, and the details stated in the same row do not indicate that they represent the same class of share-based compensation. See (1) Status of stock option grants and (2) Status of other share-based compensation grants below for additional details. (1) Status of stock option grants (As of June 30, 2026) (Unit: in shares and Won) Grantee Date of grant Method of grant Initially granted Changes during reporting period Total changes Unexercised as of end of reporting period Exercise period Exercise price Exercised Cancelled Exercised Cancelled Nohjung Kwak March 20, 2020 Issuance of treasury shares, cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Nohjung Kwak March 30, 2021 Issuance of treasury shares, cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Nohjung Kwak March 30, 2022 Issuance of treasury shares, cash settlement 11,773 11,773 March 31, 2024 March 30, 2027 121,610 Hyun Ahn March 20, 2020 Issuance of treasury shares, cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Hyun Ahn March 30, 2021 Issuance of treasury shares, cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Hyun Ahn March 30, 2022 Issuance of treasury shares, cash settlement 7,848 165 165 7,683 March 31, 2024 March 30, 2027 124,220 Seon Yong Cha March 20, 2020 Issuance of treasury shares, cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Seon Yong Cha March 30, 2021 Issuance of treasury shares, cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Seon Yong Cha March 30, 2022 Issuance of treasury shares, cash settlement 7,848 165 165 7,683 March 31, 2024 March 30, 2027 124,220 Joon-Ki Choi March 30, 2022 Issuance of treasury shares, cash settlement 4,709 4,610 99 4,610 99 March 31, 2024 March 30, 2027 124,220 * The Company completed the cancellation of treasury shares in February 2026 to enhance corporate value, and accordingly, the exercise price and quantity of the previously granted stock options were adjusted. 54 (2) Status of other share-based compensation grants (As of June 30, 2026) (Unit: in shares) Grantee Date of grant / payment (cancellation) Type New grants Cumulative grants Shares paid during the reporting period Cumulative changes Unpaid as of end of reporting period Condition for payment Timing of delivery Basis and procedures for grant Paid Cancelled Nohjung Kwak April 27, 2022 SARs* 46,685 11,640 11,640 35,045 Continued service for at least two years from the grant date After the exercise of rights during the period from April 2025 to April 2029 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Nohjung Kwak January 1, 2023 PSU* 29,369 624 624 28,745 Continued service for at least two years from the grant date After January 2026 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Nohjung Kwak January 1, 2024 PSU 10,297 10,297 Continued service for at least two years from the grant date After January 2027 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Jung-Ho Park March 17, 2022 SARs* 73,072 9,513 23,193 49,879 Continued service for at least two years from the grant date After the exercise of rights during the period from March 2025 to March 2029 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Jung-Ho Park January 1, 2023 PSU* 61,405 2,567 58,838 Continued service for at least two years from the grant date After January 2026 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Joon-Ki Choi January 1, 2024 PSU 958 958 Continued service for at least two years from the grant date After January 2027 Following approval of the Representative Director, a contract was executed with the grantee Hyun Ahn January 1, 2023 PSU* 5,554 2,997 2,557 Continued service for at least two years from the grant date After January 2026 Following approval of the Representative Director, a contract was executed with the grantee Hyun Ahn January 1, 2024 PSU 1,604 1,604 Continued service for at least two years from the grant date After January 2027 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee Seon Yong Cha January 1, 2024 PSU 1,604 1,604 Continued service for at least two years from the grant date After January 2027 Following approval of the Representative Director, a contract was executed with the grantee * Refers to the quantity finalized upon achievement of the payment conditions. 55 D. Composition of Total Remuneration Name Fiscal year Composition Nohjung Kwak Six months ended June 30, 2026 1. Earned income Salary: Won 1,250 million Bonus: Won 20,465 million Gains from exercise of stock options: Won 4,379 million Other share-based compensation: Other earned income: Won 1 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 35,045 shares / Market value: Won 92,869 million - 2023 PSU grant - Undelivered: 28,745 shares / Market value: Won 76,174 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 27,287 million - Stock options - Unexercised: 5,199 shares / Exercise price: Won 86,548 / Exercise period: March 21, 2023 March 20, 2027 Year ended December 31, 2025 1. Earned income Salary: Won 1,540 million Bonus: Won 2,695 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 4 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 48,263 shares (virtual) / Market value: Won 31,419 million - 2023 PSU grant - Undelivered: 13,755 shares (virtual) / Market value: Won 8,955 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 6,703 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 Year ended December 31, 2024 1. Earned income Salary: Won 1,400 million Bonus: Won 575 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 11 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 48,263 shares (virtual) / Market value: Won 8,393 million - 2023 PSU grant - Undelivered: 13,755 shares (virtual) / Market value: Won 2,392 million - 2024 PSU grant - Undelivered: 10,297 shares (virtual) / Market value: Won 1,791 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 56 Jung-Ho Park Six months ended June 30, 2026 1. Earned income Salary: Won 920 million Bonus: Won 15,975 million Gains from exercise of stock options: Other share-based compensation: Other earned income: 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant - Undelivered: 49,879 shares / Market value: Won 132,179 million - 2023 PSU grant - Undelivered: 58,838 shares / Market value: Won 155,921 million Year ended December 31, 2025 1. Earned income Salary: Won 1,840 million Bonus: Won 7,770 million Gains from exercise of stock options: Other share-based compensation: Other earned income: 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant Undelivered: 59,392 shares / Market value: Won 38,664 million - 2023 PSU grant - Undelivered: 28,759 shares (virtual) / Market value: Won 18,722 million Year ended December 31, 2024 1. Earned income Salary: Won 2,300 million Bonus: Won 1,207 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 83 million 2. Retirement income: Won 13,896 million 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2022 SARs grant Undelivered: 94,901 shares (virtual) / Market value: Won 16,503 million - 2023 PSU grant - Undelivered: 28,759 shares (virtual) / Market value: Won 5,001 million Joon-Ki Choi Six months ended June 30, 2026 1. Earned income Salary: Won 262 million Bonus: Won 2,963 million Gains from exercise of stock options: Won 10,319 million Other share-based compensation: Other earned income: Won 2 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2024 PSU grant - Undelivered: 958 shares (virtual) / Market value: Won 2,539 million 57 Year ended December 31, 2025 1. Earned income Salary: Won 464 million Bonus: Won 763 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 4 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 1,251 shares (virtual) / Market value: Won 814 million - 2024 PSU grant - Undelivered: 958 shares (virtual) / Market value: Won 624 million - 2022 stock option grant - Unexercised: 4,709 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Year ended December 31, 2024 1. Earned income Salary: Won 434 million Bonus: Won 297 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 7 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 1,251 shares (virtual) / Market value: Won 218 million - 2024 PSU grant - Undelivered: 958 shares (virtual) / Market value: Won 167 million - 2022 stock option grant - Unexercised: 4,709 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Hyun Ahn Six months ended June 30, 2026 1. Earned income Salary: Won 575 million Bonus: Won 6,028 million Gains from exercise of stock options: Won 4,832 million Other share-based compensation: Other earned income: Won 2 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,557 shares / Market value: Won 6,776 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 4,251 million - 2020 stock option grant - Unexercised: 5,199 shares / Exercise price: Won 86,548 / Exercise period: March 21, 2023 March 20, 2027 - 2022 stock option grant - Unexercised: 7,683 shares / Exercise price: Won 124,220 / Exercise period: March 31, 2024 March 30, 2027 58 Year ended December 31, 2025 1. Earned income Salary: Won 750 million Bonus: Won 1,214 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 88 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 1,693 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 1,044 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Year ended December 31, 2024 1. Earned income Salary: Won 545 million Bonus: Won 285 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 58 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 452 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 279 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Seon Yong Cha Six months ended June 30, 2026 1. Earned income Salary: Won 550 million Bonus: Won 6,010 million Gains from exercise of stock options: Won 4,379 million Other share-based compensation: Other earned income: Won 1 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 4,251 million - 2020 stock option grant - Unexercised: 5,199 shares / Exercise price: Won 86,548 / Exercise period: March 21, 2023 March 20, 2027 - 2022 stock option grant - Unexercised: 7,683 shares / Exercise price: Won 124,220 / Exercise period: March 31, 2024 March 30, 2027 59 Year ended December 31, 2025 1. Earned income Salary: Won 750 million Bonus: Won 1,411 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 7 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 1,693 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 1,044 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 Year ended December 31, 2024 1. Earned income Salary: Won 545 million Bonus: Won 275 million Gains from exercise of stock options: Other share-based compensation: Other earned income: Won 4 million 2. Retirement income: 3. Other income: 4. Compensation not included in total compensation Gains from exercise of stock options: Other share-based compensation: Unrealized share-based compensation - 2023 PSU grant - Undelivered: 2,601 shares (virtual) / Market value: Won 452 million - 2024 PSU grant - Undelivered: 1,604 shares (virtual) / Market value: Won 279 million - 2020 stock option grant - Unexercised: 5,311 shares / Exercise price: Won 84,730 / Exercise period: March 21, 2023 March 20, 2027 - 2021 stock option grant - Unexercised: 5,383 shares / Exercise price: Won 136,060 / Exercise period: March 31, 2023 March 30, 2026 - 2022 stock option grant - Unexercised: 7,848 shares / Exercise price: Won 121,610 / Exercise period: March 31, 2024 March 30, 2027 4. Stock Options Granted and Exercised A. Fair Value of Stock Options Granted (As of June 30, 2026) Classification Number of directors Fair value of stock options (Won) Remarks Executive Directors (Excluding Independent (Outside) Directors and Audit Committee Members) 2 7,768 Independent (Outside) Directors (Excluding Audit Committee Members) Audit Committee Members Officers 24 50,062 Includes retired officers Total 26 57,830 60 B. Stock Options Granted and Exercised (As of June 30, 2026) (Unit: in Won and shares) Grantee Relationship with the Company Date of grant Method of grant Initially granted Changes during reporting period Total changes Unexercised as of end of reporting period Exercise period Exercise price Exercised Cancelled Exercised Cancelled Nohjung Kwak Executive Director March 20, 2020 Issuance of treasury shares or cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Nohjung Kwak Executive Director March 30, 2021 Issuance of treasury shares or cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Nohjung Kwak Executive Director March 30, 2022 Issuance of treasury shares or cash settlement 11,773 11,773 March 31, 2024 March 30, 2027 121,610 Seon Yong Cha Executive Director March 20, 2020 Issuance of treasury shares or cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Seon Yong Cha Executive Director March 30, 2021 Issuance of treasury shares or cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Seon Yong Cha Executive Director March 30, 2022 Issuance of treasury shares or cash settlement 7,848 165 165 7,683 March 31, 2024 March 30, 2027 124,220 Dong-Sub Kim Unregistered Officer March 20, 2020 Issuance of treasury shares or cash settlement 7,967 168 168 7,799 March 21, 2023 March 20, 2027 86,548 Dong-Sub Kim Unregistered Officer March 30, 2021 Issuance of treasury shares or cash settlement 9,007 9,007 March 31, 2023 March 30, 2026 136,060 Dong-Sub Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 9,712 205 205 9,507 March 31, 2024 March 30, 2027 124,220 Seong-Han Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 99 99 4,610 March 31, 2024 March 30, 2027 124,220 Young-Sik Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 5,297 112 112 5,185 March 31, 2024 March 30, 2027 124,220 Woo Hyun Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 99 99 4,610 March 31, 2024 March 30, 2027 124,220 61 Youn-Wook Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 5,392 114 114 5,278 March 31, 2024 March 30, 2027 124,220 Jong Hwan Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 7,063 86 3,000 86 3,977 March 31, 2024 March 30, 2027 124,220 Ju Seon Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 99 99 4,610 March 31, 2024 March 30, 2027 124,220 Choonhwan Kim Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,238 90 90 4,148 March 31, 2024 March 30, 2027 124,220 Jong-won Noh Unregistered Officer March 20, 2020 Issuance of treasury shares or cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Jong-won Noh Unregistered Officer March 30, 2021 Issuance of treasury shares or cash settlement 5,506 5,390 116 5,390 116 March 31, 2023 March 30, 2026 138,980 Jong-won Noh Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 11,773 248 248 11,525 March 31, 2024 March 30, 2027 124,220 Kyoung Park Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,238 90 90 4,148 March 31, 2024 March 30, 2027 124,220 Jung-Sik Park Unregistered Officer March 20, 2020 Issuance of treasury shares or cash settlement 5,311 75 1,845 3,466 March 21, 2023 March 20, 2027 86,548 Jung-Sik Park* Unregistered Officer March 30, 2021 Issuance of treasury shares or cash settlement 5,383 5,383 March 31, 2023 March 30, 2026 136,060 Jung-Sik Park* Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 7,848 7,848 March 31, 2024 March 30, 2027 121,610 Seok-Woo Son Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 2,825 2,765 60 2,765 60 March 31, 2024 March 30, 2027 124,220 Hyunjong Song Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 6,333 134 134 6,199 March 31, 2024 March 30, 2027 124,220 62 Sang-Kyu Shin Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 5,297 112 112 5,185 March 31, 2024 March 30, 2027 124,220 Hyun Ahn Unregistered Officer March 20, 2020 Issuance of treasury shares or cash settlement 5,311 112 112 5,199 March 21, 2023 March 20, 2027 86,548 Hyun Ahn Unregistered Officer March 30, 2021 Issuance of treasury shares or cash settlement 5,383 5,269 114 5,269 114 March 31, 2023 March 30, 2026 138,980 Hyun Ahn Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 7,848 165 165 7,683 March 31, 2024 March 30, 2027 124,220 Jong-Hoon Oh Unregistered Officer March 20, 2020 Issuance of treasury shares or cash settlement 6,397 6,397 March 21, 2023 March 20, 2027 84,730 Jong-Hoon Oh Unregistered Officer March 30, 2021 Issuance of treasury shares or cash settlement 6,469 2,936 64 6,405 64 March 31, 2023 March 30, 2026 138,980 Jong-Hoon Oh* Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 6,757 6,757 March 31, 2024 March 30, 2027 121,610 Kang-Wook Lee Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 2,590 55 55 2,535 March 31, 2024 March 30, 2027 124,220 Byoungki Lee Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 3,139 66 66 3,073 March 31, 2024 March 30, 2027 124,220 Sangrak Lee Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 99 99 4,610 March 31, 2024 March 30, 2027 124,220 Sang-Hwa Lee Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 50 2,359 50 2,300 March 31, 2024 March 30, 2027 124,220 Joo-Hwan Cho Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 3,139 66 66 3,073 March 31, 2024 March 30, 2027 124,220 Il-Sup Jin Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 2,747 210 37 1,210 37 1,500 March 31, 2024 March 30, 2027 124,220 Joon Choi Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 5,297 112 112 5,185 March 31, 2024 March 30, 2027 124,220 Joon-Ki Choi Unregistered Officer March 30, 2022 Issuance of treasury shares or cash settlement 4,709 4,610 99 4,610 99 March 31, 2024 March 30, 2027 124,220 * As the grantee retired prior to the commencement of the exercisable period, the grant has since been cancelled. The relationship is stated based on the relationship prior to retirement (unregistered officer). ** Closing price of the Company s stock as of the reporting date (June 30, 2026): Won 2,650,000 *** The Company completed the cancellation of treasury shares in February 2026 to enhance corporate value, and accordingly, the exercise price and quantity of the previously granted stock options were adjusted. 63 C. Other Equity Compensation Plans (1) Stock grant a. Officers and employees The Company has been granting portions of remuneration to its officers and employees in the form of shares pursuant to resolution by the Board of Directors. The following table summarizes the details of such grants during the reportable period. The type and total number of shares granted were 2,324,318 common shares, all of which were paid from the Company s treasury shares. (As of June 30, 2026) Date Type of shares granted Number of shares granted Grantees / Number of grantees Timing of delivery February 29, 2024 Common shares 476,265 31,751 employees Date of grant April 26, 2024 804 1 officer Date of grant January 24, 2025 325,279 6,891 officers and employees Date of grant February 27, 2025 February 28, 2025 980,520 32,684 employees Date of grant April 24, 2025 66,025 3,331 officers and employees Date of grant July 24, 2025 43,145 3,330 officers and employees Date of grant October 30, 2025 21,473 3,330 officers and employees Date of grant February 5, 2026 410,807 12,064 officers and employees Date of grant * Based on the past three fiscal years. ** The Company operated a Shareholder Participation Program in 2025 and 2026, under which portions of performance bonuses were granted in the form of treasury shares based on voluntary enrollment. b. Independent directors The Company has been granting portions of remuneration to its independent directors in the form of shares pursuant to resolution by the Board of Directors. The following table summarizes the details of such grants during the reportable period. The type and total number of shares granted were 3,760 common shares, all of which were paid from the Company s treasury shares. 64 (As of June 30, 2026) Date Type of shares granted Number of shares granted Grantees / Number of grantees Timing of delivery April 26, 2024 Common shares 1,927 6 independent directors Date of grant April 25, 2025 1,568 5 independent directors Date of grant May 4, 2026 265 6 independent directors Date of grant * Based on the past three fiscal years. (2) SARs (Stock Appreciation Rights) a. Officers and employees Since 2023, the Company has been granting SARs to certain of its officers and employees. Each SAR corresponds to a virtual number of shares, with the cash difference between the grant price and the market price payable one year from the grant date. The rights are subject to a service-based vesting condition requiring the participant to be in active employment at the time of payout. SARs are scheduled to be settled in two separate installments. (As of June 30, 2026) Date Type of shares granted Number of shares granted Grantees / Number of grantees Condition for payment Timing of delivery July 1, 2023 Common shares (virtual) 22,633 252 officers and employees Payable upon continued service at the time of payment After July 2024 and after July 2025 July 1, 2024 11,785 257 officers and employees Payable upon continued service at the time of payment After July 2025 and after July 2026 July 1, 2025 9,779 252 officers and employees Payable upon continued service at the time of payment After July 2026 and after July 2027 * Based on the past three fiscal years. b. Directors SARs based on total shareholder return ( TSR ) were granted to directors in 2022. A certain number of virtual shares corresponding to a fixed percentage of each grantee s annual salary are granted. If the stock price (weighted average) as of the exercise notice date during the exercise period, together with dividends, exceeds the stock price at the time of grant, the Company delivers common shares in an amount equal to the product of the TSR appreciation, reflecting relative performance compared to peer companies, and the number of granted shares. The SARs become exercisable for a four-year period beginning three years after the grant date, and remain valid only if the grantee satisfies a minimum service period of two years from the grant date. In addition, in the event of a bonus issue, stock split, reverse stock split, stock dividend or similar corporate action, the number of granted shares is adjusted by applying the relevant adjustment ratio. (As of June 30, 2026) Date Type of shares granted Number of shares granted Grantees / Number of grantees Condition for payment Timing of delivery (Note 3) March 17, 2022 Common shares (virtual) 73,072 (Note 1) 1 director Continued service for at least two years from the grant date After the exercise of rights during the period from March 2025 to March 2029 April 27, 2022 46,685 (Note 2) 1 director Continued service for at least two years from the grant date After the exercise of rights during the period from April 2025 to April 2029 * Based on the past three fiscal years. (1) Represents the finalized quantity for delivery upon exercise of rights. The quantity delivered during the reporting period was 9,513 shares and the undelivered quantity was 49,879 shares. (2) Represents the finalized quantity for delivery upon exercise of rights. The quantity delivered during the reporting period was 11,640 shares and the undelivered quantity was 35,045 shares. (3) The finalized quantity shall be delivered in a lump sum or in installments at the request of the grantee. If the quantity for delivery exceeds the limit on director compensation, it may be delivered in installments within such limit. 65 (3) PSU (Performance Shared Unit) Since 2023, pursuant to applicable resolutions of the Human Resources and Compensation Committee, the Company has been granting PSUs to certain of its officers and employees. Each year, the Company grants a number of PSUs corresponding to a fixed percentage of the grantee s annual salary, with grantees able to elect either an annual or quarterly grant calculation cycle. After a three-year vesting period, the PSUs settle in cash or common shares based on the achievement of performance targets tied to the Company s absolute share price appreciation, as adjusted for its relative share price performance against the KOSPI 200 Index. In the case of exceptional performance, grantees may receive additional shares of up to 100% of the number of shares initially subject to the PSU award. If the grantee s employment with the Company s is terminated within two years of January 1 of the year the PSUs were granted, the PSUs are forfeited. The number of shares granted is subject to adjustments in cases of certain events including capital increases, stock splits, reverse stock splits and distribution of stock dividends. (As of June 30, 2026) Date Type of shares granted Number of shares granted Grantees / Number of grantees Condition for payment Timing of delivery January 1, 2023 Common shares (virtual) 426,475 (Note 1) 234 officers and employees Continued service for at least two years from the grant date After January 2026 January 1, 2024 128,968 259 officers and employees Continued service for at least two years from the grant date After January 2027 April 1, 2024 69 1 officer or employee Continued service for at least two years from the grant date After January 2027 July 1, 2024 53 1 officer or employee Continued service for at least two years from the grant date After January 2027 October 1, 2024 72 1 officer or employee Continued service for at least two years from the grant date After January 2027 * Based on the past three fiscal years. (1) Represents the finalized quantity. The quantity delivered during the reporting period was 372,335 shares and the undelivered quantity was 90,140 shares. With respect to the quantity to be delivered to directors (including those who served as directors for a portion of the three-year performance period following the grant), any undelivered quantity that exceeds the limit on director compensation shall be delivered in installments within such limit in subsequent periods. 66 IX. RELATED PARTY TRANSACTIONS 1. Credits Provided to Related Parties A. Details of Advances and Loans (As of June 30, 2026) (Unit: in millions of US$) Name of counterparty Relationship to Company Type Start date Maturity date Purpose Loan amount Ending balance Interest rate SK hynix Semiconductor (Dalian) Co., Ltd. Foreign subsidiary Long- term loan Jan, 19, 2022 Jul. 12, 2027 Working capital 1,000 1,000 3 months SOFR + 1.0% SK hynix Semiconductor (Dalian) Co., Ltd. Foreign subsidiary Long- term loan Feb. 9, 2022 Jul. 12, 2027 Working capital 1,000 1,000 3 months SOFR + 1.0% SK hynix Semiconductor (Dalian) Co., Ltd. Foreign subsidiary Long- term loan Feb. 15, 2022 Jul. 12, 2027 Working capital 1,000 429 3 months SOFR + 1.0% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Aug. 11, 2022 Aug. 11, 2026 Working capital 300 300 3 months SOFR + 0.7% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Feb. 15, 2023 Feb. 15, 2027 Working capital 300 100 3 months SOFR + 0.7% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Sept. 14, 2023 Sept. 14, 2027 Working capital 350 350 3 months SOFR + 0.7% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Oct. 17, 2023 Sept. 14, 2027 Working capital 250 250 3 months SOFR + 0.7% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Nov.14, 2023 Sept. 14, 2027 Working capital 200 200 3 months SOFR + 0.7% SK hynix NAND Product Solutions Foreign subsidiary Long- term loan Dec. 19, 2023 Sept. 14, 2027 Working capital 200 200 3 months SOFR + 0.7% * No collateral has been provided to the Company by its subsidiaries in connection with the Company s loans. ** Pursuant to Article 542-9 of the Commercial Act, where the amount of an individual loan exceeds 1/100 of the Company s sales for the immediately preceding fiscal year, or where the Company s internal Board of Directors regulations are otherwise satisfied, such loan is subject to approval by a resolution of the Board of Directors or the Audit Committee. B. Status of Debt Guaranteess See X. Other Information Relating to the Protection of Investors 2. Contingent Liabilities B. Status of Debt Guarantees appearing elsewhere in this report. 2. Transfer of Assets to/from Parent to Subsidiaries and Other Transactions A. Details of Transfer of Assets (For the six months ended June 30, 2026) (Unit: in millions of Won) Counterparty Relationship Subject of transaction Transaction date Transaction amount Transaction type Purpose Gain (loss) on disposal SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment January 2026 6,211 Sale Production efficiency improvement 3,245 HITECH Semiconductor (Wuxi) Co., Ltd. Foreign subsidiary Machinery and equipment February 2026 215 Sale Production efficiency improvement 215 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment February 2026 1,419 Sale Production efficiency improvement 1,419 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment March 2026 2,380 Sale Production efficiency improvement 2,380 67 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment April 2026 2,723 Sale Production efficiency improvement 2,723 SK hynix Semiconductor (CHONGQING) Ltd Foreign subsidiary Machinery and equipment April 2026 1,362 Sale Production efficiency improvement 1,282 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment May 2026 1,401 Sale Production efficiency improvement 1,401 SK hynix Semiconductor (CHONGQING) Ltd Foreign subsidiary Machinery and equipment May 2026 687 Sale Production efficiency improvement 687 HITECH Semiconductor (Wuxi) Co., Ltd. Foreign subsidiary Machinery and equipment June 2026 370 Sale Production efficiency improvement 370 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment June 2026 1,184 Sale Production efficiency improvement 1,184 SK hynix Semiconductor (CHONGQING) Ltd. Foreign subsidiary Machinery and equipment June 2026 657 Sale Production efficiency improvement 656 SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment January 2026 20,079 Purchase Production efficiency improvement SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment February 2026 6,680 Purchase Production efficiency improvement SK hynix Semiconductor (Dalian) Co., Ltd. Foreign subsidiary Machinery and equipment February 2026 10,788 Purchase Production efficiency improvement SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment March 2026 14,260 Purchase Production efficiency improvement SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment April 2026 11,660 Purchase Production efficiency improvement SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment May 2026 8,555 Purchase Production efficiency improvement SK hynix Semiconductor (CHONGQING) Ltd. Foreign subsidiary Machinery and equipment June 2026 783 Purchase Production efficiency improvement SK hynix Semiconductor (China) Ltd. Foreign subsidiary Machinery and equipment June 2026 14,270 Purchase Production efficiency improvement * Based on the Company s separate financial statements. * Basis for determining the transaction amount between the entities: transaction amount plus incidental expenses. The transaction amount was reasonably determined taking into account appraisal valuations and market value. * The transaction date is based on the date of sale in the case of a sale, and the date of purchase in the case of a purchase. 3. Transactions with Subsidiaries (For the six months ended June 30, 2026) (Unit: in millions of Won) Counterparty (relationship with the Company) Type of transaction Transaction period Description of transaction Transaction amount SK hynix America Inc. (overseas sales subsidiary) Sales, purchases, etc. January 1, 2026 June 30, 2026 Semiconductor sales, etc. 76,050,504 SK hynix (Wuxi) Semiconductor Sales Ltd. (overseas sales subsidiary) Sales, purchases, etc. January 1, 2026 June 30, 2026 Semiconductor sales, etc. 27,718,106 SK hynix Semiconductor Taiwan Inc. (overseas sales subsidiary) Sales, purchases, etc. January 1, 2026 June 30, 2026 Semiconductor sales, etc. 5,043,256 SK hynix Asia Pte. Ltd. (overseas sales subsidiary) Sales, purchases, etc. January 1, 2026 June 30, 2026 Semiconductor sales, etc. 4,474,143 * Transactions equal to or exceeding 5% of total revenue (on a separate basis) for the most recent fiscal year are subject to this disclosure. 68 4. Equity Compensation Transactions with Certain Related Parties (As of June 30, 2026) (Unit: in shares) Cumulative changes Counterparty (relationship with the Company) Date of grant / payment (cancellation) Type New grants Cumulative grants Shares paid during the reporting period Paid Cancelled Unpaid as of end of reporting period Condition for payment Timing of delivery Basis and procedures for grant Nohjung Kwak (Executive Director) April 27, 2022 SARs* 46,685 11,640 11,640 35,045 Continued service for at least two years from the grant date After the exercise of rights during the period from April 2025 to April 2029 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee January 1, 2023 PSU** 29,369 624 624 28,745 Continued service for at least two years from the grant date After January 2026 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee February 24, 2023 Stock Grant 1,805 1,805 Grant date Following a resolution of the Board of Directors January 1, 2024 PSU 10,297 10,297 Continued service for at least two years from the grant date After January 2027 Following a resolution of the Human Resources and Compensation Committee, a contract was executed with the grantee April 26, 2024 Stock Grant 804 804 Grant date Following a resolution of the Board of Directors January 24, 2025 Stock Grant 950 950 950 950 Grant date Following a resolution of the Board of Directors Seon Yong Cha (Executive Director) January 1, 2023 PSU*** 5,554 5,554 5,554 Continued service for at least two years from the grant date After January 2026 Following approval of the Representative Director, a contract was executed with the grantee January 1, 2024 PSU 1,604 1,604 Continued service for at least two years from the grant date After January 2027 Following approval of the Representative Director, a contract was executed with the grantee (1) A total of 46,685 common shares in SARs, 39,666 PSUs (virtual) and 3,559 common shares in stock grants were granted to Nohjung Kwak, a related person (officer of an affiliate). * The 2022 SARs grant (48,263 shares) was finalized at 46,685 shares upon achievement of the payment conditions. ** The 2023 PSU grant (13,755 shares) was finalized at 29,369 shares upon achievement of the payment conditions. (2) A total of 7,158 PSUs (virtual) were granted to Seon Yong Cha, a related person (officer of an affiliate). *** Represents the finalized quantity upon achievement of the payment conditions for the 2023 PSU grant. 5. Other Related Party Transactions (excluding Transactions with the Largest Shareholder and Related Parties listed above) None. 69 X. OTHER INFORMATION RELATING TO THE PROTECTION OF INVESTORS 1. Developments in the Items Mentioned in Prior Reports on Important Business Matters (As of June 30, 2026) Date reported Report title Details Progress of reported matter September 6, 2022 Future Business Plan Starting October 2022, the Company plans to build M15X, an extension of the existing M15 fab, in the land previously obtained by the Company in the Cheongju Technopolis Industrial Complex. The Company plans to invest approximately Won 15 trillion in the construction of the facility and acquisition and installation of equipment. Since the date of the original report, the Company has made further determinations on the investment amount (Won 5,296.5 billion) and investment period (from April 24, 2024 to October 30, 2026) at the meeting of its board of directors on April 24, 2024. In progress July 26, 2024 New Facility Investment The Company disclosed its plan to invest Won 9,411.5 billion to construct a new fab in the Yongin Semiconductor Cluster in order to respond to demand for AI semiconductors and secure foundations for the Company s future growth. In progress February 25, 2026 New Facility Investment The Company disclosed its plan to invest Won 21,608.1 billion to construct Phases 2 through 6 of its Yongin Semiconductor Cluster in order to establish medium- to long-term manufacturing infrastructure in light of increased demand for semiconductors. In progress March 25, 2026 Clarification Regarding Rumors or Media Reports In response to the inquiry disclosure request regarding media reports on the Company s pursuit of listing its treasury shares on a U.S. stock exchange (December 9, 2025), the Company disclosed that, as part of the procedures for listing on a U.S. securities market, it confidentially submitted a registration statement relating to the initial public offering of its American Depositary Receipts ( ADR s) to the U.S. Securities and Exchange Commission (SEC) on March 24, 2026. The Company is targeting a listing within 2026. However, the specific details, including the size, method and timeline of the public offering, have not yet been finalized. The final determination on whether to proceed with the listing will be made after comprehensively considering the SEC s review of the registration statement, market conditions, book-building results and other relevant circumstances. April 22, 2026 Future Business Plan Commencing in April 2026, the Company plans to construct an advanced packaging fab named P&T7 in the Cheongju Technopolis Industrial Complex. The Company expects to invest approximately Won 19 trillion in the construction of the facility and acquisition and installation of equipment. In progress June 29, 2026 Future Business Plan The Company disclosed its medium- to long-term investment strategy to proactively address the growing global demand for AI memory. The strategy encompasses the following: (1) the Yongin Semiconductor Cluster (approximately Won 600 trillion), where the Company plans to complete the construction of a fourth fab by 2033, reflecting demand projections, followed by phased investments in production facilities and equipment; (2) the Cheongju Production Base (approximately Won 100 trillion), where the Company plans to invest in the construction of a new fab and introduction of production equipment, as well as strengthen capabilities in advanced packaging for HBM back-end processes; and (3) the Southwestern Cluster (approximately Won 400 trillion), where the Company plans to pursue phased investments in a new production base in the southwestern region, including site acquisition, fab construction and introduction of production facilities. In progress 70 2. Contingent Liabilities A. Material Legal Proceedings (1) Litigation and patent claims, etc. As of June 30, 2026, the Company is responding to various disputes related to intellectual property rights and other matters. Where there is a present obligation arising from past events, for which there is a high probability of an outflow of resources in the future and the amount of the loss can be reliably estimated, the Company recognizes such amounts as liabilities. As of June 30, 2026, there are no amounts recognized as liabilities in connection with the foregoing. For more detailed information regarding the Company s contingent liabilities and other matters, see Note 29 to the Company s consolidated interim financial statements included elsewhere in this report. B. Status of Debt Guarantees The Company has provided a payment guarantee amounting to RMB 566 million to Wuxi Xinfa Group Co., Ltd. on behalf of Hystars Semiconductor (Wuxi) Co., Ltd., a joint venture. The Company has provided payment guarantees of US$71 million and PLN 12 million to its subsidiaries, SK hynix NAND Product Solutions Corp. and SK hynix memory solutions Poland sp. z o.o., respectively, for lease deposit guarantees, and has provided payment guarantees of US$1,028 million to its subsidiary, SK hynix Semiconductor West Lafayette LLC, for the fulfillment of the U.S. Department of Commerce DFA obligations and loan repayment obligations. 3. Status of Sanctions, etc. A. Sanctions by Investigative or Juridical Agencies None. B. Sanctions by Administrative Agencies (Sanctions by Other Administrative or Public Institutions) In 2024, administrative fines in an aggregate amount of Won 9.6 million were imposed on the Company in connection with a total of two incidents resulting in breaches of applicable environmental and safety regulations in Korea. The Company has paid all of such fines and taken certain remedial actions as necessary. In 2025, administrative fines in an aggregate amount of Won 2.4 million were imposed on the Company in connection with a total of two incidents resulting in breaches of applicable environmental and safety regulations in Korea, and an administrative fine of RMB 264 thousand was imposed on the Company in connection with an incident resulting in a breach of applicable environmental regulations in China. The Company has paid all of such fines and taken certain remedial actions as necessary. In 2026, administrative fines in an aggregate amount of Won 12.1 million were imposed on the Company in connection with a total of three incidents resulting in breaches of applicable safety regulations in Korea. The Company has paid all of such fines and taken certain remedial actions as necessary. In addition, a total of seven non-monetary administrative measures were imposed on the Company, including operation suspension orders, improvement orders, a work suspension recommendation, a warning and a special inspection order, in connection with certain chemical leaks and fire-related incidents resulting in breaches of applicable environmental and safety regulations in Korea. The Company has implemented the required remedial actions as necessary. 4. Material Events Subsequent to the Reporting Period The Company listed 177,900,000 ADSs, representing 17,790,000 common shares, on the Nasdaq Global Select Market on July 10, 2026. In connection therewith, the Company newly issued 17,790,000 common shares through a third-party allotment to Citibank, N.A., an overseas depositary, and such newly issued shares were additionally listed on the KRX KOSPI Market of the Korea Exchange on July 29, 2026. 71 Classification Details 1. New share issuance 17,790,000 common shares 2. Method of issuance Paid-in capital increase through third-party allotment 3. Issue price per new share (Note 1), (Note 2) Won 2,242,301 (US$1,490) 4. Listed securities (Note 1) 177,900,000 ADSs 5. Stock exchange (country) Nasdaq Global Select Market (United States) 6. Total issue amount (Note 2) Won 39,890,534,790,000 (US$26,507,100,000) 7. Use of proceeds Facility funds (1) Each ADS represents one-tenth of a common share, and the issue price per new share represents the converted amount of the public offering price for 10 ADSs, which was US$1,490. (2) The issue price and total issue amount were converted by applying the base exchange rate announced by Seoul Money Brokerage Services, Ltd. on the payment date (July 14, 2026), which was Won 1,504.90 per US$1. 72 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SK hynix Inc. (Registrant) By: /s/ Seonghwan Park (Signature) Name: Seonghwan Park Title: Head of Investor Relations Date: August 18, 2026 73 SK hynix Inc. and Subsidiaries Condensed Consolidated Interim Financial Statements (Unaudited) June 30, 2026 and 2025 (With Independent Auditors Review Report Thereon) Index to Consolidated Financial Statements Page(s) Independent Auditors Review Report 1 Condensed Consolidated Interim Financial Statements Condensed Consolidated Interim Statements of Financial Position 3 Condensed Consolidated Interim Statements of Comprehensive Income 5 Condensed Consolidated Interim Statements of Changes in Equity 6 Condensed Consolidated Interim Statements of Cash Flows 8 Notes to the Condensed Consolidated Interim Financial Statements 9 Independent Auditors Review Report Based on a report originally issued in Korean To the Shareholders and Board of Directors of SK hynix Inc. Reviewed Financial Statements We have reviewed the accompanying condensed consolidated interim financial statements of SK hynix Inc. and its subsidiaries (collectively referred to as the Group ), which comprise the condensed consolidated interim statement of financial position as of June 30, 2026, the condensed consolidated interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2026 and 2025, the condensed consolidated interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2026 and 2025, and notes comprising material accounting policy information and other explanatory information. Management s Responsibility for the Condensed Consolidated Interim Financial Statements Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards No. 1034, Interim Financial Reporting, and for such internal controls as management determines necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews. We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Security and Futures Commission of the Republic of Korea. A review of interim financial information consists principally of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements do not present fairly, in all material respects, in accordance with Korean International Financial Reporting Standards No. 1034, Interim Financial Reporting. 1 Other Matters The consolidated statement of financial position of the Group as of December 31, 2025 and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this review report, were audited by us in accordance with Korean Standards on Auditing, and our report thereon, dated March 4, 2026, expressed an unqualified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2025, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects. The procedures and practices utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those generally accepted and applied in other countries. /s/ KPMG Samjong Accounting Corp. KPMG Samjong Accounting Corp. Seoul, Korea August 14, 2026 This report is effective as of August 14, 2026 the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any. 2 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Financial Position June 30, 2026 and December 31, 2025 (Unaudited) (In millions of Korean won) Notes June 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents 5,6 W 26,835,986 W 14,923,766 Short-term financial instruments 5,6 22,397,559 14,679,719 Short-term investment assets 5,6 38,724,378 5,338,768 Trade receivables, net 5,6,7,28 47,821,395 18,199,078 Loans and other receivables, net 5,6,7,28 497,971 386,343 Other financial assets 5,6,18 23,060 195,259 Inventories, net 8 17,985,706 14,289,390 Current tax assets 57,472 67,715 Other current assets 9 1,812,427 1,378,035 156,155,954 69,458,073 Non-current assets Investments in associates and joint ventures 10 1,334,773 1,320,927 Long-term financial instruments 5,6 7,101,803 Long-term investment assets 5,6 85,309,524 14,547,099 Loans and other receivables, net 5,6,7,28 348,401 420,036 Other financial assets 5,6,18 18,655 1,114,462 Property, plant and equipment, net 11,29 88,889,146 77,502,704 Right-of-use assets, net 12,28 2,387,896 2,336,457 Intangible assets, net 13 4,283,131 4,049,402 Investment property, net 182 188 Deferred tax assets 1,219,366 3,660,493 Employee benefit assets 17 1,532,049 1,552,888 Other non-current assets 9 281,334 144,930 192,706,260 106,649,586 Total assets W 348,862,214 W 176,107,659 See accompanying notes to the condensed consolidated interim financial statements. 3 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Financial Position, Continued June 30, 2026 and December 31, 2025 (Unaudited) (In millions of Korean won) Notes June 30, 2026 December 31, 2025 Liabilities Current liabilities Trade payables 5,6,28 W 3,043,239 W 2,848,455 Other payables 5,6,20,28 6,052,556 6,434,144 Other non-trade payables 5,6,28 11,800,979 6,283,111 Borrowings 5,6,14,29 5,858,873 8,161,757 Other financial liabilities 5,6,18 1,009 4,913,879 Provisions 16 185,560 228,937 Current tax liabilities 31,958,025 7,023,813 Lease liabilities 5,6,12,28 526,461 547,296 Other current liabilities 15 830,349 937,607 60,257,051 37,378,999 Non-current liabilities Long-term other payables 5,6 371,989 375,141 Other non-trade payables 5,6 19,935 19,970 Borrowings 5,6,14,29 12,727,761 14,086,148 Other financial liabilities 5,6,18 890 2,487 Defined benefit liabilities, net 17 72,618 66,144 Deferred tax liabilities 7,836,633 248,395 Lease liabilities 5,6,12,28 2,000,044 1,962,647 Other non-current liabilities 15 2,882,065 1,300,977 25,911,935 18,061,909 Total liabilities 86,168,986 55,440,908 Equity Equity attributable to owners of the Parent Company Capital stock 19 3,657,652 3,657,652 Capital surplus 19 11,876,156 8,953,714 Other equity 19,31 (242,620 ) (1,348,598 ) Accumulated other comprehensive income 19 4,819,699 2,676,862 Retained earnings 20 242,269,723 106,576,548 Total equity attributable to owners of the Parent Company 262,380,610 120,516,178 Non-controlling interests 312,618 150,573 Total equity 262,693,228 120,666,751 Total liabilities and equity W 348,862,214 W 176,107,659 See accompanying notes to the condensed consolidated interim financial statements. 4 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Comprehensive Income Three-month and Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won, except per share information) Period Ended June 30 2026 2025 Notes Three months Six months Three months Six months Revenue 4,21,28 W 79,318,746 W 131,895,033 W 22,231,952 W 39,871,093 Cost of sales 23,28 13,327,390 24,224,263 10,248,628 17,785,778 Gross profit 65,991,356 107,670,770 11,983,324 22,085,315 Selling and administrative expenses 22,23,28 5,448,748 9,517,879 2,770,473 5,431,960 Operating profit 60,542,608 98,152,891 9,212,851 16,653,355 Finance income 24 65,858,814 82,915,164 1,719,380 4,406,739 Finance expenses 24 3,640,903 6,664,386 2,172,268 2,936,872 Share of profit (loss) of equity-accounted investees 10 (20,122 ) (46,900 ) 17,312 (23,797 ) Other income 25,28 13,838 28,861 29,879 108,822 Other expenses 25,28 45,880 60,417 84,571 186,435 Profit before income tax 122,708,355 174,325,213 8,722,583 18,021,812 Income tax expense 26 28,785,762 40,056,711 1,726,367 2,917,401 Profit for the period W 93,922,593 W 134,268,502 W 6,996,216 W 15,104,411 Other comprehensive income (loss) Item that will never be reclassified to profit or loss: Remeasurements of defined benefit liability, net of tax 17 (30,245 ) (74,270 ) (2,290 ) (5,350 ) Items that are or may be reclassified to profit or loss: Foreign operations foreign currency translation differences, net of tax 1,074,083 2,083,466 (969,409 ) (933,619 ) Gain (loss) on valuation of derivatives, net of tax 18 (402 ) (8,342 ) 6,491 (4,785 ) Equity-accounted investees share of other comprehensive income (loss), net of tax 10 15,741 82,609 (88,538 ) (102,261 ) Other comprehensive income (loss) for the period, net of tax 1,059,177 2,083,463 (1,053,746 ) (1,046,015 ) Total comprehensive income for the period W 94,981,770 W136,351,965 W 5,942,470 W 14,058,396 Profit attributable to: Owners of the Parent Company W 93,820,236 W 134,150,412 W 6,997,228 W 15,104,309 Non-controlling interests 102,357 118,090 (1,012 ) 102 Total comprehensive income attributable to: Owners of the Parent Company W 94,864,501 W 136,218,979 W 5,943,034 W 14,057,088 Non-controlling interests 117,269 132,986 (564 ) 1,308 Earnings per share 27 Basic earnings per share (in Korean won) W 132,126 W 189,546 W 10,135 W 21,890 Diluted earnings per share (in Korean won) W 131,478 W 188,193 W 9,580 W 20,996 See accompanying notes to the condensed consolidated interim financial statements. 5 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Changes in Equity Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won) Attributable to owners of the Parent Company Notes Capital stock Capital surplus Other equity Accumulated other comprehensive income (loss) Retained earnings Total Non- controlling interests Total equity Balance at January 1, 2025 W 3,657,652 W 4,487,123 W (2,191,549 ) W 2,532,107 W 65,418,061 W 73,903,394 W 12,310 W 73,915,704 Comprehensive income (loss): Profit for the period 15,104,309 15,104,309 102 15,104,411 Remeasurements of defined benefit liability, net of tax 17 (5,350 ) (5,350 ) (5,350 ) Other comprehensive income of associate, net of tax 10 (102,261 ) (102,261 ) (102,261 ) Loss on valuation of derivatives, net of tax 18 (4,785 ) (4,785 ) (4,785 ) Foreign currency translation differences for foreign operations, net of tax (934,825 ) (934,825 ) 1,206 (933,619 ) Total comprehensive income (loss) for the period (1,041,871 ) 15,098,959 14,057,088 1,308 14,058,396 Transactions with owners of the Parent Company: Changes in ownership in subsidiaries 64,562 64,562 64,562 Dividends paid 20 (1,159,114 ) (1,159,114 ) (1,159,114 ) Disposal of treasury shares 19 150,654 78,296 228,950 228,950 Changes in consolidation scope 315 315 Share-based payment transactions 31 23,266 9,014 32,280 1,392 33,672 Total transactions with owners of the Parent Company 238,482 87,310 (1,159,114 ) (833,322 ) 1,707 (831,615 ) Balance at June 30, 2025 W 3,657,652 W 4,725,605 W (2,104,239 ) W 1,490,236 W 79,357,906 W 87,127,160 W 15,325 W 87,142,485 See accompanying notes to the condensed consolidated interim financial statements. 6 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Changes in Equity, Continued Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won) Attributable to owners of the Parent Company Notes Capital stock Capital surplus Other equity Accumulated other comprehensive income (loss) Retained earnings Total Non- controlling interests Total equity Balance at January 1, 2026 W 3,657,652 W 8,953,714 W (1,348,598 ) W 2,676,862 W 106,576,548 W 120,516,178 W 150,573 W 120,666,751 Comprehensive income (loss): Profit for the period 134,150,412 134,150,412 118,090 134,268,502 Remeasurements of defined benefit liability, net of tax 17 (74,270 ) (74,270 ) (74,270 ) Other comprehensive loss of associate, net of tax 10 82,609 82,609 82,609 Loss on valuation of derivatives, net of tax 18 (8,342 ) (8,342 ) (8,342 ) Foreign currency translation differences for foreign operations, net of tax 2,068,570 2,068,570 14,896 2,083,466 Total comprehensive income (loss) for the period 2,142,837 134,076,142 136,218,979 132,986 136,351,965 Transactions with owners of the Parent Company: Changes in ownership in subsidiaries (68,951 ) (68,951 ) (66,570 ) (135,521 ) Dividends paid 20 (1,594,365 ) (1,594,365 ) (1,594,365 ) Transfer of capital surplus to retained earnings 19,20 (4,083,635 ) 4,083,635 Disposal of treasury shares 19 6,995,013 257,846 7,252,859 7,252,859 Cancellation of treasury shares 19 872,237 (872,237 ) Share-based payment transactions 31 80,015 (24,105 ) 55,910 95,629 151,539 Total transactions with owners of the Parent Company 2,922,442 1,105,978 1,617,033 5,645,453 29,059 5,674,512 Balance at June 30, 2026 W 3,657,652 W 11,876,156 W (242,620 ) W 4,819,699 W 242,269,723 W 262,380,610 W 312,618 W 262,693,228 See accompanying notes to the condensed consolidated interim financial statements. 7 SK hynix Inc. and Subsidiaries Consolidated Interim Statements of Cash Flows Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won) Note 2026 2025 Cash flows from operating activities Cash generated from operating activities 30 W 85,599,073 W 21,728,137 Interest received 356,933 180,200 Interest paid (492,517 ) (494,127 ) Dividends received 13,983,648 25,932 Income tax paid (7,704,636 ) (3,250,301 ) Net cash provided by operating activities 91,742,501 18,189,841 Cash flows from investing activities Decrease in short-term financial instruments 11,083,958 3,642,179 Increase in short-term financial instruments (15,143,352 ) (7,557,759 ) Increase in short-term investment assets, net (32,988,854 ) (954,531 ) Decrease in long-term financial instruments 1,336 Increase in long-term financial instruments (13,100,000 ) Decrease in other financial assets 796 Increase in other financial assets (5,044 ) (2,305 ) Collection of loans and other receivables 120,175 22,740 Increase in loans and other receivables (10,028 ) (9,500 ) Proceeds from disposal of long-term investment assets 10,695,241 274,060 Acquisitions of long-term investment assets (14,710,763 ) (10,197 ) Proceeds from disposal of property, plant and equipment 19,603 75,170 Acquisitions of property, plant and equipment (18,328,836 ) (10,615,739 ) Proceeds from disposal of intangible assets 88 2,137 Acquisitions of intangible assets (665,180 ) (460,437 ) Proceeds from disposal of investments in associates 5,397 7,726 Acquisitions of investments in associates (7,100 ) (4,500 ) Cash outflow from business combination (3,079,783 ) Receipt of government grants 9,730 Net cash used in investing activities (73,023,629 ) (18,669,943 ) Cash flows from financing activities Proceeds from borrowings 2,774,316 3,175,749 Repayments of borrowings (8,560,167 ) (3,014,365 ) Repayments of lease liabilities (287,185 ) (301,734 ) Dividends paid (1,594,365 ) (1,159,114 ) Issue of shares by subsidiaries and changes in ownership in subsidiaries 28,306 Proceeds from disposal of treasury shares 21,322 28,560 Others 8 Net cash used in financing activities (7,617,773 ) (1,270,896 ) Effects of exchange rate changes on cash and cash equivalents 811,121 (332,862 ) Classification as held for sale (45,946 ) Net increase (decrease) in cash and cash equivalents 11,912,220 (2,129,806 ) Cash and cash equivalents at the beginning of the period 14,923,766 11,205,117 Cash and cash equivalents at the end of the period W 26,835,986 W 9,075,311 See accompanying notes to condensed consolidated interim financial statements. 8 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information (1) General information about SK hynix Inc. (the Parent Company ) and its subsidiaries (collectively referred to as the Group ) is as follows: The Parent Company manufactures, distributes and sells semiconductor products. The Parent Company was established on October 15, 1949 and its shares have been listed on the Korea Exchange since 1996. The Parent Company s headquarter is located at 2091 Gyeongchung-daero, Bubal-eup, Icheon-si, Gyeonggi-do, South Korea, and the Group has manufacturing facilities in Icheon-si and Cheongju-si, South Korea, and Wuxi, Chongqing and Dalian, China. As of June 30, 2026, the shareholders of the Parent Company are as follows: Number of shares Percentage of ownership (%) Shareholder June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 SK Square Co., Ltd. 146,100,000 146,100,000 20.50 20.07 Other investors 564,975,500 555,591,520 79.27 76.32 Treasury shares 1,626,865 26,310,845 0.23 3.61 712,702,365 728,002,365 100.00 100.00 The Parent Company s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange and the Luxembourg Stock Exchange, respectively. 9 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information, Continued (2) Details of the Group s consolidated subsidiaries as of June 30, 2026 and December 31, 2025 are as follows: Ownership (%) Company Controlling company Location Business 2026 2025 SK hyeng Inc. SK hynix Inc. Korea Construction and service 100.00 100.00 SK hystec Inc. SK hynix Inc. Korea Business support and service 100.00 100.00 Happymore Inc. SK hynix Inc. Korea Semiconductor apparel manufacturing, baking and services 100.00 100.00 SK hynix system ic Inc. SK hynix Inc. Korea Semiconductor research and development and business support 100.00 100.00 HappyNarae Co., Ltd. SK hynix Inc. Korea Industrial material supply 100.00 100.00 SK Keyfoundry Inc. SK hynix Inc. Korea Semiconductor sales, manufacturing and others 100.00 100.00 SK hynix America Inc. SK hynix Inc. U.S.A Semiconductor sales 100.00 100.00 SK hynix Deutschland GmbH SK hynix Inc. Germany Semiconductor sales 100.00 100.00 SK hynix Asia Pte. Ltd. SK hynix Inc. Singapore Semiconductor sales 100.00 100.00 SK hynix Semiconductor Hong Kong Ltd. SK hynix Inc. Hong kong Semiconductor sales 100.00 100.00 SK hynix U.K. Ltd. SK hynix Inc. U.K. Semiconductor sales 100.00 100.00 SK hynix Semiconductor Taiwan Inc. SK hynix Inc. Taiwan Semiconductor sales 100.00 100.00 SK hynix Japan Inc. SK hynix Inc. Japan Semiconductor sales 100.00 100.00 SK hynix Semiconductor India Private Ltd. SK hynix Asia Pte. Ltd. India Semiconductor sales 100.00 100.00 SK hynix (Wuxi) Semiconductor Sales Ltd. SK hynix Inc. China Semiconductor sales 100.00 100.00 SK hynix Semiconductor (China) Ltd. SK hynix Inc. China Semiconductor manufacturing 100.00 100.00 SK hynix memory solutions Taiwan Ltd. SK hynix Inc. Taiwan Semiconductor research and development 100.00 100.00 SK APTECH Ltd. SK hynix Inc. Hong kong Overseas investment 100.00 100.00 SK hynix Ventures Hong Kong Ltd. SK hynix Inc. Hong kong Overseas investment 100.00 100.00 Gauss Labs Inc.1 SK hynix Inc. U.S.A Information and Communications Industry 95.98 97.38 SK hynix NAND Product Solutions Corp.3,4 SK hynix Inc. U.S.A Semiconductor sales, research and development and others 98.16 97.48 SK hynix Semiconductor (Dalian) Co., Ltd. SK hynix Inc. China Semiconductor manufacturing 100.00 100.00 SK hynix memory solutions Poland sp. z o.o. SK hynix Inc. Poland Semiconductor research and development 100.00 100.00 SK hynix Semiconductor (Chongqing) Ltd. SK APTECH Ltd. China Semiconductor manufacturing 100.00 100.00 SK hynix memory solutions America Inc. SK hynix America Inc. U.S.A Semiconductor research and development 100.00 100.00 SK hynix (Wuxi) Investment Ltd. SK hynix Semiconductor (China) Ltd. China Overseas investment 100.00 100.00 10 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information, Continued (2) Details of the Group s consolidated subsidiaries as of June 30, 2026 and December 31, 2025 are as follows, Continued: Ownership (%) Company Controlling company Location Business 2026 2025 SK hynix (Wuxi) Industry Development Ltd. SK hynix (Wuxi) Investment Ltd. China Foreign hospital construction 100.00 100.00 SK hynix Happiness (Wuxi) Hospital Management Ltd. SK hynix (Wuxi) Investment Ltd. China Foreign hospital operation 70.00 70.00 SK hynix cleaning (Wuxi) Ltd. SK hynix (Wuxi) Investment Ltd. China Building maintenance and others 100.00 100.00 SUZHOU HAPPYNARAE Co., Ltd. HappyNarae Co., Ltd. China Overseas industrial material supply 100.00 100.00 CHONGQING HAPPYNARAE Co., Ltd. SUZHOU HAPPYNARAE Co., Ltd. China Overseas industrial material supply 100.00 100.00 SK hynix (Wuxi) Education Service Development Co., Ltd. SK hynix (Wuxi) Education Technology Co., Ltd. China Overseas education 100.00 100.00 HappyNarae America LLC2 HappyNarae Co., Ltd. U.S.A Overseas industrial material supply 100.00 100.00 HappyNarae Hungary Kft2 HappyNarae Co., Ltd. Hungary Overseas industrial material supply 100.00 100.00 SK hynix (Wuxi) Education Technology Co., Ltd. SK hynix (Wuxi) Investment Ltd. China Overseas education 100.00 100.00 Solidigm Inc. 1,3,4,5 SK hynix NAND Product Solutions Corp. U.S.A Semiconductor sales, research and development and others 96.86 SK hynix NAND Product Solutions Taiwan Co., Ltd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Taiwan Semiconductor research and development and sales 96.86 97.48 SK hynix NAND Product Solutions Canada Ltd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Canada Semiconductor research and development 96.86 97.48 SK hynix NAND Product Solutions Mexico, S. DE R.L. DE C.V. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Mexico Semiconductor research and development 96.86 97.48 SK hynix NAND Product Solutions UK Limited1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 U.K. Semiconductor sales 96.86 97.48 SK hynix NAND Product Solutions Israel Ltd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Israel Semiconductor sales 96.86 97.48 SK hynix NAND Product Solutions International LLC1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 U.S.A Semiconductor sales 96.86 97.48 SK hynix NAND Product Solutions Asia Pacific LLC1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 U.S.A Semiconductor sales 96.86 97.48 SK hynix NAND Product Solutions Malaysia Sdn. Bhd.1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Malaysia Semiconductor sales 96.86 97.48 11 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information, Continued (2) Details of the Group s consolidated subsidiaries as of June 30, 2026 and December 31, 2025 are as follows, Continued: Ownership (%) Company Controlling company Location Business 2026 2025 SK hynix NAND Product Solutions Malaysia Sdn. Bhd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Malaysia Semiconductor sales 96.86 97.48 SK HYNIX NAND PRODUCT SOLUTIONS POLAND sp. z o.o.1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 Poland Semiconductor research and development 96.86 97.48 SK hynix NAND Product Solutions (Beijing) Co., Ltd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 China Semiconductor sales 96.86 97.48 SK Hynix NAND Product Solutions (Shanghai) Co., Ltd. 1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 China Semiconductor research and development 96.86 97.48 Intel NDTM US LLC1,3 SK hynix NAND Product Solutions Corp. and Solidigm Inc.6 U.S.A Semiconductor research and development 96.86 97.48 SHIFTIX HOLDINGS LLC3,5 SK hynix NAND Product Solutions Corp. U.S.A Overseas investment 98.16 SHIFTIX1 LLC3,7 SHIFTIX HOLDINGS LLC U.S.A Overseas investment 98.16 SK Keyfoundry America Inc. SK Keyfoundry Inc. U.S.A Semiconductor sales 100.00 100.00 SK Keyfoundry Shanghai Co., Ltd. SK Keyfoundry Inc. China Semiconductor sales 100.00 100.00 SK Powertech SK Keyfoundry Inc. Korea Semiconductor manufacturing 99.42 99.42 SK hynix semiconductor storage technology (Dalian) Co., Ltd. SK hynix Semiconductor (Dalian) Co., Ltd. China Semiconductor manufacturing support 100.00 100.00 SK hynix Semiconductor West Lafayette LLC SK hynix America Inc. U.S.A Semiconductor manufacturing 100.00 100.00 Solidigm NAND Product Solutions (Dalian) Co., Ltd.1,3,8 SK hynix NAND Product Solutions UK Limited China Semiconductor sales 96.86 MMT (Money Market Trust) Korea Money Market Trust 100.00 100.00 1 The entity s ownership interest decreased due to exercise of the stock options by the employees of subsidiaries during the six-month period ended June 30, 2026. 2 Liquidation is in progress as of June 30, 2026. 3 The entity s ownership interest increased and decreased due to the purchase of employee-owned shares by the subsidiaries and third-party paid-in capital increases during the six-month period ended June 30, 2026. 4 As part of the business reorganization of SK hynix NAND Product Solutions Corp., the NAND flash memory and SSD sales and research and development businesses, including the related assets and liabilities previously held by SK hynix NAND Product Solutions Corp., were transferred to Solidigm Inc. during the six-month period ended June 30, 2026. In the course of this reorganization, SK hynix NAND Product Solutions Corp. acquired all restricted stock units (RSUs) previously granted to its employees. 5 The entity was newly established as a subsidiary of SK Hynix NAND Product Solutions Corp. during the six-month period ended June 30, 2026. 6 Certain subsidiaries have been transferred to Solidigm Inc. as of June 30, 2026, and the transfer of the remaining related subsidiaries to Solidigm Inc. is expected to be completed within 2026. 7 The entity was newly established as a subsidiary of SHIFTIX HOLDINGS LLC during the six-month period ended June 30, 2026. 8 The entity was newly established as a subsidiary of SK hynix NAND Product Solutions UK Ltd. during the six-month period ended June 30, 2026. 12 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information, Continued (3) Changes in the Group s consolidated subsidiaries for the six-month period ended June 30, 2026 are as follows: Type Company Reason Addition Solidigm Inc. New establishment Solidigm NAND Product Solutions (Dalian) Co., Ltd. New establishment SHIFTIX HOLDINGS LLC New establishment SHIFTIX1 LLC New establishment (4) Major subsidiaries summarized statements of financial position as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Assets Liabilities Equity Assets Liabilities Equity SK hynix America Inc. W 35,384,944 W 33,792,462 W 1,592,482 W 11,796,744 W 10,820,074 W 976,670 SK hynix Asia Pte. Ltd. 2,582,871 2,428,572 154,299 722,275 583,135 139,140 SK hynix Semiconductor Hong Kong Ltd. 1,216,340 976,718 239,622 1,083,795 866,247 217,548 SK hynix U.K. Ltd. 1,028,491 986,785 41,706 562,832 524,847 37,985 SK hynix Semiconductor Taiwan Inc. 2,384,999 2,328,050 56,949 885,042 850,369 34,673 SK hynix (Wuxi) Semiconductor Sales Ltd. 7,528,652 6,016,881 1,511,771 3,598,755 2,615,459 983,296 SK hynix Semiconductor (China) Ltd. 9,872,714 2,043,174 7,829,540 9,229,621 1,731,329 7,498,292 SK hynix Semiconductor (Chongqing) Ltd. 988,281 223,362 764,919 1,386,504 174,072 1,212,432 SK hynix NAND Product Solutions Corp. and subsidiaries1 19,858,215 11,632,055 8,226,160 12,555,237 10,282,219 2,273,018 1 Only summarized financial information of the NAND business has been presented. 13 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information, Continued (5) Major subsidiaries summarized statements of comprehensive income for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Revenue Net profit Revenue Net profit SK hynix America Inc. W 75,475,832 W 551,411 W 24,749,336 W 146,925 SK hynix Asia Pte. Ltd. 4,482,466 4,680 1,080,044 2,479 SK hynix Semiconductor Hong Kong Ltd. 4,156,094 7,422 1,122,017 3,466 SK hynix U.K. Ltd. 2,065,507 865 618,495 2,068 SK hynix Semiconductor Taiwan Inc. 5,067,670 27,780 1,409,925 4,332 SK hynix (Wuxi) Semiconductor Sales Ltd. 28,298,568 401,859 6,184,287 55,133 SK hynix Semiconductor (China) Ltd. 3,077,628 477,532 2,908,384 494,991 SK hynix Semiconductor (Chongqing) Ltd. 614,645 38,277 436,991 39,829 SK hynix NAND Product Solutions Corp. and subsidiaries1 12,250,694 5,839,588 3,355,653 132,068 1 Only summarized financial information of the NAND business has been presented. (6) There are no significant non-controlling interests to the Group as of June 30, 2026 and December 31, 2025. 14 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies 2.1 Basis of Consolidated Interim Financial Statements Preparation The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ( Korean IFRS ). The accompanying condensed consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The accompanying consolidated interim financial statements have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. These consolidated interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of June 30, 2026. 2.1.1 New and amended standards or interpretations adopted by the Group The Group has applied the following new and revised Korean IFRS Standards or interpretations that are effective from January 1, 2026. (a) Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and 1101 First-time Adoption of International Financial Reporting Standards Lack of Exchangeability When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments do not have a significant impact on the consolidated interim financial statements. 15 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies 2.1 Basis of Consolidated Interim Financial Statements Preparation The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ( Korean IFRS ). The accompanying condensed consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Group s consolidated interim financial statements for the six-month period ended June 30, 2026, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. These consolidated interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of June 30, 2026. 2.1.1 New and amended standards or interpretations adopted by the Group The Group has applied the following new and amended IFRS Standards or interpretations that are effective from January 1, 2026. (a) Amendments to Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures Disclosure requirements have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments do not have a significant impact on the consolidated interim financial statements. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion. Add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). (b) Annual Improvements to Korean IFRS -Volume 11 The significant amendments are as follows. The amendments do not have a significant impact on the consolidated interim financial statements. Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards: Hedge accounting by a first-time adopter Korean IFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition and implementation guidance Korean IFRS 1109 Financial Instruments: Derecognition of lease liabilities and definition of transaction price Korean IFRS 1110 Consolidated Financial Statements: Determination of a de facto agent Korean IFRS 1007 Statement of Cash Flows: Cost Method 16 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.1.1 New and amended standards or interpretations adopted by the Group, Continued (c) Amendments to Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures Contracts Referencing Nature-dependent Electricity Contracts referencing nature-dependent electricity are defined contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (for example, the weather). The amendments clarify that contracts to buy or sell such electricity are assessed for eligibility under the own-use exemption. In addition, the amendments modify hedge accounting requirements by allowing an entity to designate as the hedged item a variable nominal amount of forecast electricity transactions that reflect the nature-dependent variability of electricity and introduce additional disclosure requirements. The amendments do not have a significant impact on the consolidated interim financial statements. 2.1.2 New and amended standards or interpretations not yet adopted by the Group The following new accounting standards and interpretations have been published and are not mandatory for June 30, 2026 reporting periods and have not been early adopted by the Group. (a) New Standard: Korean IFRS 1118 Presentation and Disclosure in Financial Statements Korean IFRS 1118 Presentation and Disclosure in Financial Statements replaces Korean IFRS 1001 Presentation of Financial Statements and includes new requirements aimed at enhancing comparability of financial performance between similar entities and providing more relevant information to users. While the amendments do not affect the recognition or measurement of items in the financial statements, they are expected to have an extensive impact on presentation and disclosure, including the income statement and the disclosure of management-defined performance measures. The standard should be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. In accordance with the retrospective application requirements, comparative information for all comparative periods presented shall be restated under Korean IFRS 1118. Management is in the process of evaluating the impact of applying the new standard on the Group s consolidated financial statements. Based on a preliminary assessment, the following potential effects have been identified. 17 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.1.2 New and amended standards or interpretations not yet adopted by the Group, Continued Adoption of the standard is not expected to have an impact on the Group s net profit or loss; however, it will require revenues and expenses in the income statements to be classified into new categories, which is expected to have an impact on the calculation and presentation of operating profit (loss). Based on a preliminary impact assessment conducted by the Group, the following items have been identified as potentially affecting operating profit (loss). Exchange differences currently presented in Finance Income and Finance Expenses outside of operating profit may need to be presented separately in the new categories, and certain foreign exchange gains and losses may be presented in operating profit (loss). The standard specifies detailed requirements for the categorization of gains and losses on derivative instruments. Such gains and losses should be presented in the same category as the income and expenses affected by the risks the derivative instruments are used to mitigate. Currently, the Group presents these gains and losses within finance income and expenses. Consequently, there may be changes to the classification of these items in the income statement. Applying the concept of a useful structured summary and the enhanced principles of aggregation and disaggregation may result in changes to the line items presented in the primary financial statements. In addition, goodwill must be presented separately on the statement of financial position; therefore, the Group will present goodwill and other intangible assets as separate line items. The requirements for disclosing material information remain unchanged; therefore, the Group does not expect significant changes to the information currently disclosed in the Notes. However, as a result of the principles of aggregation and disaggregation, the way information is grouped may change. In addition, significant new disclosures will be required for the following matters. Management-defined performance measure A breakdown of line items classified by function within the operating category of the income statement into their nature (required only for specified nature expenses) Reconciliation of differences for each line item in the income statement between the amounts previously presented under Korean IFRS 1001 and the restated amounts by applying Korean IFRS 1118 for the comparative period immediately preceding the period in which this standard is first applied. There is a change in the presentation of interest received and interest paid in the statement of cash flows. Interest paid will be presented as cash flows from financing activities, and interest received as cash flows from investing activities, resulting in a change from the current presentation of cash flows from operating activities. 18 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.2 Accounting Policies Material accounting policies and method of computation used in the preparation of the consolidated interim financial statements are consistent with those of the consolidated annual financial statements for the year ended December 31, 2025, except for the changes due to the application of amendments and enactments of standards described in Note 2.1.1 and as described below. 2.2.1 Income tax expense Income tax expense for the interim period is recognized based on management s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual effective income tax rate is applied to the pre-tax income for the interim period. The Group is subject to the Global Minimum Tax (Pillar Two). The Group has not recognized additional income tax expenses in relation to Pillar Two during the six-month period ended June 30, 2026 and applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. 3. Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The estimates and assumptions are continuously assessed, considering historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These resulting accounting estimates may differ from the actual results. Critical accounting estimates and assumptions made in the preparation of these consolidated interim financial statements are consistent with those applied in the preparation of the consolidated annual financial statements for the year ended December 31, 2025, except for the estimates used to determine the income tax expense. 19 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 4. Operating Segment and Entity-wide Information The Group has a single reportable segment that is engaged in the manufacture and sale of semiconductor products. The Chief Operating Decision Maker of the Group reviews the operational results of the semiconductor business with the reporting information which is prepared in the same manner with that used by management during the establishment of the Group s business strategy. (1) The Group s non-current assets (excluding financial assets, loans and other receivables, investment in associates and joint ventures, deferred tax assets and others) information by region based on the location of the Parent Company and its subsidiaries as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Korea W 85,025,205 W 74,293,530 China 11,224,256 10,533,204 Asia (other than China) 16,430 15,424 U.S.A. 1,100,316 738,739 Europe 7,531 5,672 W 97,373,738 W 85,586,569 (2) For the six-month period ended June 30, 2026, revenues of W17,608,702 million (13.35%) and W17,187,421 million (13.03%), each representing over 10% of the Group s revenue, are derived from external Customer A and B, respectively. For the six-month period ended June 30, 2025, revenue of W10,890,639 million(27.31%), over 10% of the Group s revenue, is derived from the external customer A. (3) Entity-wide revenue information by region is disclosed in note 21 (3). 20 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Carrying Amounts of Financial Instruments by Categories (1) Carrying amounts of financial assets by categories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income or loss Financial assets at amortized cost Others Total Cash and cash equivalents W W W 26,835,986 W W 26,835,986 Short-term financial instruments 222,500 22,175,059 22,397,559 Short-term investment assets 38,724,378 38,724,378 Trade receivables1 1,415,263 46,406,132 47,821,395 Loans and other receivables 846,372 846,372 Other financial assets 32 16,425 25,258 41,715 Long-term financial instruments 7,101,803 7,101,803 Long-term investment assets 85,309,524 85,309,524 W 124,256,434 W 1,415,263 W 103,381,777 W 25,258 W 229,078,732 1 The Group transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the consolidated financial statements when all the risks and rewards are substantially transferred. Accordingly, the Group recognized gain or loss on disposal of trade receivables. (In millions of Korean won) December 31, 2025 Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income or loss Financial assets at amortized cost Others Total Cash and cash equivalents W W W 14,923,766 W W 14,923,766 Short-term financial instruments 222,500 14,457,219 14,679,719 Short-term investment assets 5,338,768 5,338,768 Trade receivables1 1,256,429 16,942,649 18,199,078 Loans and other receivables 806,379 806,379 Other financial assets 62 1,113,792 195,867 1,309,721 Long-term investment assets 14,547,099 14,547,099 W 20,108,429 W 1,256,429 W 48,243,805 W 195,867 W 69,804,530 1 The Group transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the consolidated financial statements when all the risks and rewards are substantially transferred. Accordingly, the Group recognized gain or loss on disposal of trade receivables. 21 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Carrying Amounts of Financial Instruments by Categories, Continued (2) Carrying amounts of financial liabilities by categories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Others Total Trade payables W W 3,043,239 W W 3,043,239 Other payables 6,424,545 6,424,545 Other non-trade payables1 2,457,773 2,457,773 Borrowings2 18,586,634 18,586,634 Lease liabilities 2,526,505 2,526,505 Other financial liabilities 102 1,475 322 1,899 W 102 W 33,040,171 W 322 W 33,040,595 1 Among other non-trade payables, employee benefits liabilities that correspond to the Group s obligations under the employee benefit plan were excluded because they were not subject to disclosure of financial instruments. 2 The Group participated in supplier-financing arrangements under letters of credit, where financial institutions pay the Group s obligations to suppliers within a certain limit, and the Group subsequently repays the financial institution. There were no short-term borrowings under the supplier financing arrangements as of June 30, 2026. (In millions of Korean won) December 31, 2025 Financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Others Total Trade payables W W 2,848,455 W W 2,848,455 Other payables 6,809,285 6,809,285 Other non-trade payables1 1,541,016 1,541,016 Borrowings2 22,247,905 22,247,905 Lease liabilities 2,509,943 2,509,943 Other financial liabilities 4,911,955 1,585 2,826 4,916,366 W 4,911,955 W 35,958,189 W 2,826 W 40,872,970 1 Among other non-trade payables, employee benefits liabilities that correspond to the Group s obligations under the employee benefit plan were excluded because they were not subject to disclosure of financial instruments. 2 The Group participated in supplier-financing arrangements under letters of credit, where a financial institution pay the Group s obligations to suppliers within a certain limit, and the Group subsequently repays the financial institution. There were no short-term borrowings under the supplier financing arrangements as of December 31, 2025. 22 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management (1) Financial risk management The Group s activities are exposed to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The consolidated interim financial statements do not include all the financial risk management policies and disclosures that are required in the consolidated annual financial statements; therefore, see the consolidated annual financial statements for full disclosure. There were no significant changes in risk management department and risk management policies subsequent to December 31, 2025. (a) Market risk (i) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar, Euro, Chinese yuan and Japanese yen. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities in foreign currencies, and net investments in foreign operations. Monetary foreign currency assets and liabilities as of June 30, 2026 are as follows: (In millions of Korean won and millions of foreign currencies) Assets Liabilities Foreign currencies Korean won equivalent Foreign currencies Korean won equivalent USD 47,876 W 73,800,740 17,128 W 26,402,128 JPY 1,361 12,956 125,727 1,196,892 CNY 1,932 438,442 3,013 683,944 EUR 28 49,636 398 700,737 Also, as described in Note 18, the Group entered into a currency interest rate swap contract to hedge interest rate risk and currency risk of foreign currency denominated bonds and borrowings. When the exchange rate of the functional currency for each foreign currency fluctuates by 10% as of June 30, 2026, the impact of the change in the exchange rate on profit before income tax expenses are as follows: (In millions of Korean won) If increased by 10% If decreased by 10% USD W 4,751,654 W (4,751,654 ) JPY (118,394 ) 118,394 CNY (24,550 ) 24,550 EUR (65,110 ) 65,110 23 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (1) Financial risk management, Continued (a) Market risk, Continued (ii) Interest rate risk Interest rate risk of the Group is defined as the risk that the interest expenses arising from borrowings will fluctuate due to changes in future market interest rate. The interest rate risk mainly arises through floating rate borrowings, and is partially offset by interests received from floating rate financial assets. The Group is managing cash flow interest rate risk using floating-to-fixed cross currency interest rate swaps. These interest rate swaps have an economic effect of converting floating interest borrowings into fixed interest borrowings. Generally, the Group borrows at a floating interest rate and then swaps at a fixed rate. Under the swap agreement, the Group will settle the difference between fixed interest costs and the floating interest costs calculated according to the principal agreed upon for each counterparty and specific period (mainly quarterly). The Group is partially exposed to the risk of changing net interest costs due to changes in interest rates as of June 30, 2026. The Group has signed a currency interest rate swap contract on floating interest rate borrowings in foreign currency amount to W117,925 million and an interest rate swap contract on floating interest rate borrowings in local currency of W286,000 million. Therefore, the changes in interest costs subject to fluctuation of interest rates do not have an impact on the profit before income tax for the six-month period ended June 30, 2026. As of June 30, 2025, if interest rates on borrowings and financial assets had been 100 basis points higher/lower with all other variables held constant, profit before income tax would have been W19,855 million (2025: W24,348 million) lower/higher over the next year, mainly as a result of higher/lower net interest costs on floating-rate borrowings and interest income on floating-rate financial assets. (iii) Price risk The Group invests in equity and debt securities resulted from its business needs and the purpose of liquidity management. The Group s equity and debt securities are exposed to price risk as of June 30, 2026. (b) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises mainly from operating and investing activities. In order to manage credit risk, the Group periodically evaluates the creditworthiness of each customer or counterparty through the analysis of its financial information, historical transaction records and other factors, based on which the Group establishes credit limits for each customer or counterparty. 24 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (1) Financial risk management, Continued (b) Credit risk, Continued (i) Trade and other receivables For each new customer, the Group individually analyzes its credit worthiness before standard payment and delivery terms and conditions are offered. In addition, the Group is continuously managing trade and other receivables by reevaluating the customer s credit worthiness and securing collaterals in order to limit its credit risk exposure. The Group reviews at the end of each reporting period whether trade and other receivables are impaired and maintains credit insurance policies to manage credit risk exposure from oversea customers. The extent of the Group s exposure to credit risk as of June 30, 2026 is equal to the carrying amount of trade and other receivables. (ii) Other financial assets Credit risk also arises from other financial assets such as cash and cash equivalents, short-term financial instruments, short-term and long-term investment assets, and short-term and long-term loans mainly due to the bankruptcy of each counterparty to those financial assets. The maximum exposure to credit risk as of June 30, 2026 is the carrying amount of those financial assets. The Group deposits cash and cash equivalents, short-term financial instruments and others in several financial institutions, and transacts only with banks and financial institutions with high credit ratings. Accordingly, management does not expect any significant loss from non-performance by the counterparties. (c) Liquidity risk Liquidity risk is defined as the risk that the Group is unable to meet its short-term payment obligations on time due to deterioration of its business performance or inability to access financing. The Group forecasts its cash flow and liquidity status and sets action plans on a regular basis to manage liquidity risk proactively. The Group invests surplus cash in interest-bearing current accounts, time deposits, and demand deposits choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. 25 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (2) Capital management The Group s objectives when managing capital are to safeguard the Group s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends to shareholders, procure and repay borrowings, issue new shares, and sell assets. The debt-to-equity ratio and net borrowing ratio as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Total liabilities (A) W 86,168,986 W 55,440,908 Total equity (B) 262,693,228 120,666,751 Cash and cash equivalents, and others1 (C) 87,957,923 34,942,253 Total borrowings (D) 18,586,634 22,247,905 Debt-to-equity ratio (A/B) 32.80 % 45.95 % Net borrowing ratio2 (D-C)/B 1 Total amount of cash and cash equivalents, short-term financial instruments and short-term investment assets. 2 Net borrowing ratio is not disclosed because the ratio is negative. Under major borrowing contracts, the Group is obliged to comply with a certain level of debt ratio and Loan-To-Value ratio. The Group has complied with all of these conditions as of June 30, 2026. (3) Fair value Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that an 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 (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) 26 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (3) Fair value, Continued (a) The following table presents the Group s carrying amounts and fair values of financial instruments by categories, including their levels in the fair value hierarchy, as of June 30, 2026 and December 31, 2025: (In millions of Korean won) June 30, 2026 Carrying amounts Level 1 Level 2 Level 3 Total Financial assets measured at fair value Short-term financial instruments W 222,500 W W W 222,500 W 222,500 Short-term investment assets 38,724,378 38,724,378 38,724,378 Trade receivables1 1,415,263 1,415,263 1,415,263 Long-term investment assets 85,309,524 82,041,303 3,268,221 85,309,524 Other financial assets 25,290 25,290 25,290 125,696,955 122,206,234 3,490,721 125,696,955 Financial assets not measured at fair value Cash and cash equivalents2 26,835,986 Short-term financial instruments2 22,175,059 Long-term financial instruments2 7,101,803 Trade receivables2 46,406,132 Loans and other receivables2 846,372 Other financial assets2 16,425 103,381,777 Total financial asset W 229,078,732 W W 122,206,234 W 3,490,721 W 125,696,955 Financial liabilities measured at fair value Other financial liabilities W 424 W W 424 W W 424 Financial liabilities not measured at fair value Trade payables2 3,043,239 Other payables2 6,424,545 Other non-trade payables2 2,457,773 Borrowings 18,586,634 18,559,338 18,559,338 Lease liabilities2 2,526,505 Other financial liabilities2 1,475 33,040,171 18,559,338 18,559,338 Total financial liabilities W 33,040,595 W W 18,559,762 W W 18,559,762 1 The Group transferred some of the trade receivables and substantially transferred the risks and rewards to the customer. Accordingly, the Group derecognized trade receivables from the consolidated financial statement on the date of assets transfer and recognized gain or loss on disposal of trade receivables. 2 The Group has not disclosed the fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. 27 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (3) Fair value, Continued (a) The following table presents the Group s carrying amounts and fair values of financial instruments by categories, including their levels in the fair value hierarchy, as of June 30, 2026 and December 31, 2025, Continued: (In millions of Korean won) December 31, 2025 Carrying amounts Level 1 Level 2 Level 3 Total Financial assets measured at fair value Short-term financial instruments W 222,500 W W W 222,500 W 222,500 Short-term investment assets 5,338,768 5,338,768 5,338,768 Trade receivables1 1,256,429 1,256,429 1,256,429 Long-term investment assets 14,547,099 14,547,099 14,547,099 Other financial assets 195,929 195,929 195,929 21,560,725 6,791,126 14,769,599 21,560,725 Financial assets not measured at fair value Cash and cash equivalents2 14,923,766 Short-term financial instruments2 14,457,219 Trade receivables2 16,942,649 Loans and other receivables2 806,379 Other financial assets2 1,113,792 48,243,805 Total financial asset W 69,804,530 W W 6,791,126 W 14,769,599 W 21,560,725 Financial liabilities measured at fair value Other financial liabilities W 4,914,781 W W 4,914,781 W W 4,914,781 Financial liabilities not measured at fair value Trade payables2 2,848,455 Other payables2 6,809,285 Other non-trade payables2 1,541,016 Borrowings 22,247,905 22,449,184 22,449,184 Lease liabilities2 2,509,943 Other financial liabilities2 1,585 35,958,189 22,449,184 22,449,184 Total financial liabilities W 40,872,970 W W 27,363,965 W W 27,363,965 1 The Group transferred some of the trade receivables and substantially transferred the risks and rewards to the customer. Accordingly, the Group derecognized trade receivables from the consolidated financial statement on the date of assets transfer and recognized gain or loss on disposal of trade receivables. 2 The Group did not present fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. 28 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Financial Risk Management, Continued (3) Fair value, Continued (b) Valuation Techniques The valuation techniques used to measure financial instruments with fair value level 2 and level 3 are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2025. (c) During the six-month period ended June 30, 2026, certain long-term investment assets were transferred from Level 3 to Level 2 as a result of changes in the valuation methodology. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period in which the event or change in circumstances that caused the transfer occurred. The changes in financial assets classified as level 3 fair value measurements for the six-month period ended June 30, 2026 are as follows: (In millions of Korean won) Beginning Balance Acquisition Disposals Gain on Valuation Foreign Exchange Difference Transfer Ending Balance Financial assets: Short-term financial instruments W 222,500 W 222,500 Long-term investment assets W 14,547,099 2,111,992 (10,655,502 ) 62,943,900 397,942 (66,077,210 ) W 3,268,221 29 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 7. Trade Receivables and Loans and Other Receivables (1) Details of loans and other receivables as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Other receivables W 97,269 W 89,511 Accrued income 288,690 156,266 Short-term loans 76,777 117,592 Short-term guarantee and other deposits 35,235 22,974 497,971 386,343 Non-current Long-term other receivables 82,667 74,024 Long-term loans 118,375 189,262 Guarantee deposits 147,078 156,488 Others 281 262 348,401 420,036 W 846,372 W 806,379 (2) Trade receivables and loans and other receivables, net of provision for impairment, as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Gross amount Provision for impairment Carrying amount Trade receivables W 47,823,937 W (2,542 ) W 47,821,395 Current loans and other receivables 498,047 (76 ) 497,971 Non-current loans and other receivables 349,405 (1,004 ) 348,401 W 48,671,389 W (3,622 ) W 48,667,767 (In millions of Korean won) December 31, 2025 Gross amount Provision for impairment Carrying amount Trade receivables W 18,201,785 W (2,707 ) W 18,199,078 Current loans and other receivables 386,419 (76 ) 386,343 Non-current loans and other receivables 420,972 (936 ) 420,036 W 19,009,176 W (3,719 ) W 19,005,457 30 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 8. Inventories Details of inventories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Acquisition cost Inventory valuation allowance Carrying amount Merchandise W 9,432 W (2,704 ) W 6,728 Finished goods 3,203,472 (137,762 ) 3,065,710 Work-in-process 11,125,075 (46,273 ) 11,078,802 Raw materials 2,435,016 (24,085 ) 2,410,931 Supplies 1,387,688 (202,621 ) 1,185,067 Goods in transit 238,468 238,468 W 18,399,151 W (413,445 ) W 17,985,706 (In millions of Korean won) December 31, 2025 Acquisition cost Inventory valuation allowance Carrying amount Merchandise W 5,564 W (261 ) W 5,303 Finished goods 2,616,635 (209,670 ) 2,406,965 Work-in-process 9,290,708 (83,271 ) 9,207,437 Raw materials 1,507,058 (17,745 ) 1,489,313 Supplies 1,086,570 (183,958 ) 902,612 Goods in transit 277,760 277,760 W 14,784,295 W (494,905 ) W 14,289,390 9. Other Current and Non-current Assets Details of other current and non-current assets as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Advance payments W 120,227 W 73,312 Prepaid expenses 420,807 291,529 Value added tax refundable 1,158,832 876,429 Contract assets 102,298 125,240 Others 10,263 11,525 1,812,427 1,378,035 Non-current Long-term advance payments 113,792 79,810 Long-term prepaid expenses 35,601 33,778 Others 131,941 31,342 281,334 144,930 W 2,093,761 W 1,522,965 31 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 10. Investments in Associates and Joint Ventures (1) General information of investments in associates and joint ventures is as follows: Type Investee Location Business Associates SK China Company Limited1 China Consulting and investment SK South East Asia Investment Pte. Ltd. Singapore Consulting and investment SiFive, Inc.2 U.S.A Design and manufacture of semiconductor Wuxi xinfa IC industry park., Ltd. China Developing science-technological park Others Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd.3 China Manufacture of semiconductor parts SK hynix system ic (Wuxi) Co., Ltd.4, 5 China Foundry factory construction Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor3 Korea Investment Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor3 Korea Investment Others 1 Management of the Group is able to exercise significant influence over the entity by participating the Board of Directors. Accordingly, the investment has been classified as an associate. 2 The Group is able to exercise significant influence through its right to appoint a director to the Board of Directors of investee. Accordingly, the investment has been classified as an associate. 3 It has been classified to a joint venture as it is stated in the agreement that unanimous vote is required for relevant activities. 4 Net asset share amount and carrying amount of SK hynix system ic (Wuxi) Co., Ltd. were prepared based on the consolidated financial statements including Hystars Semiconductor (Wuxi) Co., Ltd. 5 As major decisions require the approval of two-thirds or more of the shareholders, the entity has been classified as an investment in a joint venture. 32 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 10. Investments in Associates and Joint Ventures, Continued (2) Details of investments in associates and joint ventures as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Investee Ownership (%) Net asset value Carrying amount Ownership (%) Carrying amount Associates: SK China Company Limited 11.87 W 445,436 W 498,033 11.87 W 463,560 SK South East Asia Investment Pte. Ltd. 20.00 397,714 397,714 20.00 370,671 SiFive, Inc. 6.84 10,368 9,892 6.84 9,175 Wuxi xinfa IC industry park., Ltd. 30.00 51,029 51,029 30.00 46,990 Others 147,848 154,294 160,957 Joint venture: HITECH Semiconductor (Wuxi) Co., Ltd. 45.00 150,654 150,347 45.00 152,015 SK hynix system ic (Wuxi) Co., Ltd. 49.79 (71,930 ) 27,571 49.79 78,548 Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 33.33 10,068 10,068 33.33 9,039 Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor 37.50 20,205 20,205 37.50 19,574 Others 15,621 15,620 10,398 W 1,177,013 W 1,334,773 W 1,320,927 (3) Changes in investments in associates and joint ventures for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 Beginning balance Acquisition Share of profit (loss) Other equity movement Dividend Recovery of principal Ending balance SK China Company Limited W 463,560 W W 3,768 W 30,705 W W W 498,033 SK South East Asia Investment Pte. Ltd. 370,671 (289 ) 27,332 397,714 SiFive, Inc. 9,175 717 9,892 Wuxi xinfa IC industry park., Ltd. 46,990 (348 ) 4,387 51,029 HITECH Semiconductor (Wuxi) Co., Ltd. 152,015 7,673 11,192 (20,533 ) 150,347 SK hynix system ic (Wuxi) Co., Ltd. 78,548 (54,202 ) 3,225 27,571 Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 9,039 3,083 (54 ) (430 ) (1,570 ) 10,068 Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor 19,574 631 20,205 Others 171,355 7,100 (7,216 ) 5,105 (2,603 ) (3,827 ) 169,914 W 1,320,927 W 7,100 W (46,900 ) W 82,609 W (23,566 ) W (5,397 ) W 1,334,773 33 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 10. Investments in Associates and Joint Ventures, Continued (3) Changes in investments in associates and joint ventures for the six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) 2025 Beginning balance Acquisition Share of profit (loss) Other equity movement Dividend Recovery of principal Ending balance SK China Company Limited W 456,471 W W 2,074 W (38,936 ) W W W 419,609 SK South East Asia Investment Pte. Ltd. 401,843 (15,738 ) (35,252 ) 350,853 SiFive, Inc. 18,311 (7,056 ) 73 11,328 Wuxi xinfa IC industry park., Ltd. 44,895 1,922 (2,691 ) 44,126 HITECH Semiconductor (Wuxi) Co., Ltd. 157,255 5,861 (12,452 ) (18,472 ) 132,192 SK hynix system ic (Wuxi) Co., Ltd. 688,702 (62,075 ) (4,565 ) 622,062 Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 11,237 73 (167 ) 11,143 Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor 22,459 (75 ) (2,700 ) 19,684 Others 139,490 4,500 51,217 (8,271 ) (1,420 ) (5,026 ) 180,490 W 1,940,663 W 4,500 W (23,797 ) W (102,261 ) W (19,892 ) W (7,726 ) W 1,791,487 34 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 10. Investments in Associates and Joint Ventures, Continued (4) Major associates and joint ventures summarized financial information as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Current assets Non-current assets Current liabilities Non-current liabilities SK China Company Limited W 2,380,173 W 1,765,083 W 109,421 W 345,644 SK South East Asia Investment Pte. Ltd. 1,104,869 1,048,035 13,996 34,152 HITECH Semiconductor (Wuxi) Co., Ltd. 315,864 268,941 242,186 7,833 SK hynix system ic (Wuxi) Co., Ltd. 1,063,386 1,271,404 967,509 1,513,101 (In millions of Korean won) December 31, 2025 Current assets Non-current assets Current liabilities Non-current liabilities SK China Company Limited W 1,787,188 W 2,120,977 W 151,370 W 293,452 SK South East Asia Investment Pte. Ltd. 1,021,847 983,307 58,110 36,458 HITECH Semiconductor (Wuxi) Co., Ltd. 298,955 277,560 182,138 58,962 SK hynix system ic (Wuxi) Co., Ltd. 210,511 1,233,265 962,673 520,468 (5) Major associates and joint ventures summarized financial information for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Revenue Net profit (loss) Revenue Net profit (loss) SK China Company Limited W 39,596 W 26,542 W 32,097 W 26,204 SK South East Asia Investment Pte. Ltd. 160,915 109,834 798,677 (15,183 ) HITECH Semiconductor (Wuxi) Co., Ltd. 413,517 19,642 367,516 25,536 SK hynix system ic (Wuxi) Co., Ltd. 179,290 (108,863 ) 177,417 (123,867 ) 35 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 11. Property, Plant and Equipment (1) Changes in property, plant and equipment for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 77,502,704 W 60,157,474 Acquisition 17,595,043 11,249,168 Disposal and retirement (11,176 ) (50,281 ) Depreciation (7,133,682 ) (6,153,025 ) Transfers 6,706 7,457 Foreign exchange difference, etc. 929,551 (776,924 ) Transfer to current assets held for sale (2,195 ) Business combination 41,259 Ending balance W 88,889,146 W 64,472,933 (2) Certain property, plant and equipment are pledged as collaterals for borrowings of the Group as of June 30, 2026 (see note 29). 12. Leases (1) Changes in right-of-use assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 2,336,457 W 2,486,871 Acquisition 211,854 124,420 Termination (7,102 ) (2,437 ) Depreciation (207,179 ) (220,120 ) Foreign exchange difference 53,866 (37,858 ) Transfer to current assets held for sale (1,262 ) Ending balance W 2,387,896 W 2,349,614 (2) Changes in lease liabilities for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 2,509,943 W 2,768,376 Acquisition 211,771 124,497 Termination (7,236 ) (2,283 ) Interest expenses 48,474 48,403 Payments (316,646 ) (326,865 ) Foreign exchange difference 80,199 (82,724 ) Transfer to current liabilities held for sale (1,271 ) Ending balance W 2,526,505 W 2,528,133 36 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 13. Intangible Assets Changes in intangible assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 4,049,402 W 4,018,847 Acquisition 613,963 409,571 Disposal and retirement (1,975 ) (2,908 ) Amortization (418,422 ) (426,775 ) Transfers (6,866 ) (7,544 ) Transfer to current assets held for sale (310 ) Business combination 1,412 Others1 47,029 (47,152 ) Ending balance W 4,283,131 W 3,945,141 1 Others include increase/decrease due to foreign exchange difference. 37 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 14. Borrowings Details of borrowings as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Short-term borrowings W 2,664,419 W 2,395,797 Current portion of long-term borrowings 1,945,289 1,470,301 Current portion of debentures1 1,249,165 4,295,659 5,858,873 8,161,757 Non-current Long-term borrowings 2,183,825 2,879,750 Debentures 10,543,936 11,206,398 12,727,761 14,086,148 W 18,586,634 W 22,247,905 1 The Group held exchangeable bonds issued in 2023, and the maturity date of the exchangeable bonds is in 2030. As of December 31, 2025, the Group classified the exchangeable bonds as current borrowings due to the possibility of exercising conversion rights by the bondholders. During the six-month period ended June 30, 2026, exchangeable bonds equivalent to USD 738,400,000 were exchanged for 8,932,474 shares upon exercise of exchange rights by the bondholders. As the exchangeable bonds were fully exchanged into shares during the six-month period ended June 30, 2026, no balance remains as of June 30, 2026. On a cumulative basis, exchangeable bonds equivalent to USD 1,700,000,000 have been exchanged for 20,560,302 shares. The conditions of issuance are as follows: Type of bond Foreign exchangeable bond Issue amount USD 1,700,000,000 Outstanding balance of bonds issued1 USD 0 Interest rate Coupon Rate 1.75% Yield Rate 1.75% Maturity Date April 11, 2030 Redemption measures 1) Redemption upon maturity: redemption of the remaining amounts for which conversion rights or early redemption has not been exercised upon maturity date 2) Early redemption: Redemption by the Call Option of the Issuer or redemption by the Put Option of Bondholders Details of conversion right Conversion Rate 100.00% of the principal amount Conversion price W108,811 per share Subject of Conversion Ordinary shares of the SK hynix Inc. (currently held as treasury shares) Conversion period May 22, 2023 - April 1, 2030 Adjustment to Conversion Price Adjustment of the Conversion Price in certain circumstances, including but not limited to: Bonus issue, subdivision, consolidation, reclassification, rights issues of options or warrants over shares, share dividends, capital distribution, modification of rights of conversion, issues at less than Current Market Price, etc. 38 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 14. Borrowings, Continued Details of borrowings as of June 30, 2026 and December 31, 2025 are as follows, Continued Put Option of Bondholders The fourth anniversary from the transaction date (April 11, 2027) In the case of a change of control of the Parent company In the case of the Shares of the Parent company ceases to be listed or admitted to trading or are suspended for trading for a period equal to or exceeding 20 consecutive Trading Days Call Option of the Issuer On or after April 25, 2028, in the case of the closing price of the Shares for any 20 trading days in a period of 30 consecutive trading days is at least 130% of the prevailing Conversion Price In the case of the aggregate principal amount of the Bonds outstanding is less than 10% of the aggregate principal amount originally issued (Clean Up Call) In the case of the Issuer becomes obliged to pay any additional amounts, as a result of changes relating to tax laws in Korea. 1 Upon issuance, the exchangeable bonds were exchangeable into 20,126,911 shares. The number of shares subject to exchange was subsequently adjusted due to the exercise of exchange rights and adjustments in the exchange price. As the exchange rights were fully exercised, there were no exchangeable shares outstanding as of June 30, 2026 15. Other Current and Non-current Liabilities Details of other current and non-current liabilities as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Advance receipts W 49,582 W 59,298 Unearned income 8,161 6,499 Withholdings 228,806 318,105 Contract liabilities 523,532 474,185 Others 20,268 79,520 830,349 937,607 Non-current Other long-term employee benefits 2,881,930 1,300,847 Others 135 130 2,882,065 1,300,977 W 3,712,414 W 2,238,584 39 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 16. Provisions (1) Changes in provisions for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 Beginning Balance Increase Utilization Reversal Ending Balance Warranty W 222,751 W W (6,242 ) W (38,670 ) W 177,839 Emission allowances 4,359 1,535 5,894 Restoration 1,827 1,827 W 228,937 W 1,535 W (6,242 ) W (38,670 ) W 185,560 (In millions of Korean won) 2025 Beginning Balance Increase Utilization Reversal Ending Balance Warranty W 263,001 W 33,495 W (5,191 ) W W 291,305 Emission allowances 5,407 (3,167 ) 2,240 Restoration 1,827 1,827 W 270,235 W 33,495 W (5,191 ) W (3,167 ) W 295,372 (2) Provisions for warranty The Group estimates the expected warranty costs based on historical results and records provisions for warranty. Regarding the durability issue of certain products sold in the prior years, the Group separately estimated and recorded warranty provisions for the amount expected to be paid for cash compensation, product replacement and other customer supporting activities. 40 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 16. Provisions, Continued (3) Provision for emission allowances The Group recognizes estimated future payment for the number of emission certificates required to settle the Group s obligation exceeding the actual number of certificates on hand as emission allowances according to the Act on Allocation and Trading of Greenhouse Gas Emission Permits. (a) Details of the allocated amount of emission permits and the estimated amount of emission as of June 30, 2026 are as follows: (In ten thousand tons CO2-eq) June 30, 2026 Allocated emission permits 665 Estimated volume of emission 729 (b) Changes in the emission permits rights for the six-month period ended June 30, 2025 are as follows: (In ten thousand tons CO2-eq) 2025 Beginning balance 58 Allocated 547 Disposal (19 ) Ending balance 586 41 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 17. Defined Benefit Liabilities (Assets) (1) Details of defined benefit liabilities (assets) as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Present value of defined benefit obligations W 3,494,995 W 3,447,188 Fair value of plan assets (4,954,426 ) (4,933,932 ) Net defined benefit liabilities (assets) W (1,459,431 ) W (1,486,744 ) Defined benefit liabilities W 72,618 W 66,144 Employee benefit assets1 W 1,532,049 W 1,552,888 1 The Parent Company and certain subsidiaries fair value of plan assets in excess of the present value of defined benefit obligations, presented as employee benefit assets, amounted to W1,532,049 million and W1,552,888 million as of June 30, 2026 and December 31, 2025, respectively. (2) Changes in present value of defined benefit obligations for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 3,447,188 W 3,125,802 Current service cost 151,108 145,645 Interest expense 89,880 76,606 Transfer from associates 5,268 2,706 Benefits paid (198,847 ) (143,187 ) Others 398 86 Ending balance W 3,494,995 W 3,207,658 (3) Changes in fair value of plan assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 4,933,932 W 4,211,967 Contributions 172,839 265,500 Interest income 131,592 104,504 Transfer from associates 4,745 3,249 Benefits paid (214,716 ) (147,420 ) Remeasurements (74,270 ) (5,350 ) Others 304 (130 ) Ending balance W 4,954,426 W 4,432,320 42 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 17. Defined Benefit Liabilities (Assets), Continued (4) The amounts recognized in profit or loss for the three-month and the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Current service cost W 75,535 W 151,108 W 72,816 W 145,645 Net interest income (20,874 ) (41,712 ) (13,966 ) (27,898 ) W 54,661 W 109,396 W 58,850 W 117,747 (5) Contributions to defined contribution plans amounting to W15,255 million (2025: W9,225 million) were recognized as cost for the six-month periods ended June 30, 2026. 18. Derivative Financial Instruments (1) Currency and interest rate swap (a) Details of derivative financial instruments applying cash flow hedge accounting as of June 30, 2026 are as follows: (In millions of Korean won and thousands of foreign currencies) Hedged items Hedging instruments Borrowing date Financial instrument Hedged risk Type of contract Financial institution Contract period 2019.10.02 Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 62,500) Foreign currency risk and interest rate risk Floating-to-fixed cross currency interest rate swap Korea Development Bank 2019.10.02 ~ 2026.10.02 2025.10.02 Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 14,000) Foreign currency risk and interest rate risk Floating-to-fixed cross currency interest rate swap Shinhan Bank 2025.10.02 ~ 2029.10.02 2023.04.04 Borrowing for equipment with floating rate (Par value: KRW 100,000) Interest rate risk Interest rate swap Woori Bank 2023.04.04 ~ 2028.04.04 2024.03.07 Borrowing for equipment with floating rate (Par value: KRW 186,000) Interest rate risk Interest rate swap Shinhan Bank 2024.03.07 ~ 2027.10.18 43 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 18. Derivative Financial Instruments, Continued (1) Currency and interest rate swap, Continued (b) The fair value of derivative financial assets and derivative financial liabilities held by the Group are presented in other financial assets and other financial liabilities in the consolidated financial statements of financial position as of June 30, 2026 and the details are as follows: (In millions of Korean won and thousands of foreign currencies) Type of contract Hedged items Cash flow hedge Fair value Floating-to-fixed cross currency swap Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 62,500) W 22,523 W 22,523 Floating-to-fixed cross currency swap Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 14,000) 2,403 2,403 Interest rate swap Borrowing for equipment with floating rate (Par value: KRW 100,000) 272 272 Interest rate swap Borrowing for equipment with floating rate (Par value: KRW 186,000) 60 60 Derivative financial assets W 25,258 Interest rate swap Borrowing for equipment for with floating rate (Par value: KRW 186,000) W 322 W 322 Derivative financial liabilities W 322 As of June 30, 2026, changes of fair value of the derivative are recognized in other comprehensive income or loss as all of designated hedging instruments are all effective against risks. (2) Embedded Derivatives The details of the embedded derivatives held by the Group presented in other financial liabilities in the consolidated financial statements of financial position as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Derivative financial liabilities Embedded Derivatives1 W W 4,911,677 1 Embedded derivatives are conversion right, call option, and put options granted on exchangeable bonds issued by the Group on April 11, 2023 (See note 14). As the exchangeable bonds were fully exchanged into shares during the six-month period ended June 30, 2026, no balance of embedded derivatives remains as of June 30, 2026. (3) Currency Forward Contracts The Group enters into currency forward contracts to minimize accounting profits and losses arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies other than USD, but hedge accounting is not applied. The details of the derivatives related to currency forward contracts held by the Group presented in other financial assets and other financial liabilities in the consolidated financial statements of financial position as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Assets Liabilities Assets Liabilities Current derivatives: Currency forwards W 32 W 102 W 62 W 277 44 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 19. Capital Stock, Capital Surplus, Other Equity and Accumulated Other Comprehensive Income (1) The Parent Company has 9,000,000,000 authorized shares and the face value per share is W5,000 as of June 30, 2026. The number of shares issued, common stock, capital surplus and other equity as of June 30, 2026 and December 31, 2025, are as follows: (In millions of Korean won and shares) June 30, 2026 December 31, 2025 Issued shares1 712,702,365 728,002,365 Capital stock: Common stock W 3,657,652 W 3,657,652 Capital surplus: Additional paid-in capital2 W 21,406 W 3,625,797 Others2,3 11,854,750 5,327,917 W 11,876,156 W 8,953,714 Other equity: Acquisition cost of treasury shares3,4 W (92,746 ) W (1,499,954 ) Share options 39,913 64,018 Others (189,787 ) 87,338 W (242,620 ) W (1,348,598 ) Accumulated other comprehensive income: Equity-accounted investees share of other comprehensive income W 334,673 W 252,064 Foreign operations foreign currency translation differences 4,484,823 2,416,253 Gain on valuation of derivatives 203 8,545 W 4,819,699 W 2,676,862 Number of treasury shares: Number of treasury shares3,4 1,626,865 26,310,845 1 The number of issued shares decreased due to share retirement for the six-month period ended June 30, 2026 and from the past. 2 For the six-month period ended June 30, 2026, the Group resolved at the regular general meeting of shareholders held on March 25, 2026, to increase distributable retained earnings by transferring capital surplus to retained earnings. As a result, share premium of W3,604,391 million and capital reduction surplus of W479,244 million were transferred to retained earnings. 3 The Group disposed 9,383,980 treasury shares, and recognized gains on disposal of treasury shares of W6,995,013 million. 4 The Group retired 15,300,000 treasury shares during the six-month period ended June 30, 2026. 45 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 19. Capital Stock, Capital Surplus, Other Equity and Accumulated Other Comprehensive Income, Continued (2) The number of outstanding shares, which represents the Parent Company s issued shares outstanding less treasury shares, as of June 30, 2026 and December 31, 2025, are as follows: (In shares) June 30, 2026 Listed Shares Treasury Shares Outstanding Shares The number of issued shares 712,702,365 1,626,865 711,075,500 (In shares) December 31, 2025 Listed Shares Treasury Shares Outstanding Shares The number of issued shares 728,002,365 26,310,845 701,691,520 20. Retained Earnings Retained earnings as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Legal reserve1 W 1,055,907 W 845,040 Discretionary reserve2 235,507 235,507 Unappropriated retained earnings3,4 240,978,309 105,496,001 W 242,269,723 W 106,576,548 1 The Commercial Code of the Republic of Korea requires the Parent Company to appropriate for each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued capital stock. The reserve is not available for cash dividends payment but may be transferred to capital stock or used to reduce accumulated deficit. 2 Discretionary reserve is the reserve for technology development. 3 For the six-month period ended June 30, 2026, the Group resolved at the regular general meeting of shareholders held on March 25, 2026, to increase distributable retained earnings by transferring capital surplus to retained earnings. As a result, share premium of W3,604,391 million and capital reduction surplus of W479,244 million were transferred to retained earnings. 4 Dividends amounting to W1,327,712 million, which were approved at shareholders meeting held on March 25, 2026, and W266,653 million, which were approved at board of directors meeting held on April 22, 2026 were distributed as of June 30, 2026. 46 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 21. Revenue (1) Details of the Group s revenue for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Sale of goods and other products W 79,282,850 W 131,828,247 W 22,201,681 W 39,809,725 Providing services 35,896 66,786 30,271 61,368 W 79,318,746 W 131,895,033 W 22,231,952 W 39,871,093 (2) Details of the Group s revenue by product and service types for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months DRAM W 56,982,743 W 97,641,379 W 17,123,990 W 31,160,860 NAND Flash 21,959,898 33,534,133 4,727,806 7,956,641 Others 376,105 719,521 380,156 753,592 W 79,318,746 W 131,895,033 W 22,231,952 W 39,871,093 (3) Details of the Group s revenue information by region based on the location of selling entities for the three-month and six-month periods ended June 30, 2026 and 2025 is as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Korea W 481,841 W 660,608 W 408,005 W 850,625 U.S.A. 50,565,618 84,564,776 15,039,907 27,834,440 China 19,681,698 32,478,276 4,670,650 7,365,002 Asia (other than China) 6,913,940 11,387,227 1,739,197 2,997,489 Europe 1,675,649 2,804,146 374,193 823,537 W 79,318,746 W 131,895,033 W 22,231,952 W 39,871,093 (4) Details of the Group s revenue by the timing of revenue recognition during the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Performance obligations satisfied at a point in time W 79,282,850 W 131,828,247 W 22,201,681 W 39,809,725 Performance obligations satisfied over time 35,896 66,786 30,271 61,368 W 79,318,746 W 131,895,033 W 22,231,952 W 39,871,093 47 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 22. Selling and Administrative Expenses Selling and administrative expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Selling and Administrative Expenses: Salaries W 1,201,626 W 2,046,077 W 437,973 W 875,793 Defined benefit plan 13,319 25,890 14,340 27,191 Employee benefits 85,154 176,439 69,572 135,021 Commission 190,393 367,517 239,866 432,842 Depreciation 61,475 132,239 74,738 150,240 Amortization 118,787 237,038 120,295 255,349 Freight and custody charges 22,897 39,996 15,329 28,670 Taxes and dues 33,939 77,028 30,547 59,479 Advertising 46,764 72,843 32,623 47,546 Supplies 42,086 81,469 31,601 54,069 Sales promotion expenses 113,733 227,678 42,856 143,434 Quality control costs 4,538 (38,563 ) 63,694 60,029 Training 19,789 48,215 18,554 45,221 Others 129,425 207,730 102,917 169,751 2,083,925 3,701,596 1,294,905 2,484,635 Research and Development Expenses: Expenditure on research and development 3,492,395 6,042,870 1,530,504 3,045,610 Development cost capitalized (127,572 ) (226,587 ) (54,936 ) (98,285 ) 3,364,823 5,816,283 1,475,568 2,947,325 W 5,448,748 W 9,517,879 W 2,770,473 W 5,431,960 48 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 23. Expenses by Nature Nature of expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Changes in finished goods, work-in-process, and others W (1,448,976 ) W (2,531,536 ) W 936,898 W (232,761 ) Raw materials, supplies and consumables 3,959,309 7,007,772 2,875,285 5,399,883 Employee benefit 8,289,142 13,806,415 2,777,882 5,510,800 Depreciation and amortization 4,028,246 7,754,011 3,442,889 6,776,817 Commission 1,278,910 2,492,982 1,031,084 2,047,587 Utilities 838,911 1,635,676 708,168 1,492,050 Repair 893,469 1,669,094 724,807 1,397,949 Outsourcing 698,520 1,357,700 500,838 909,469 Others 446,042 905,230 104,060 67,198 Transfer: capitalized development cost and others (207,435 ) (355,202 ) (82,810 ) (151,254 ) Total1 W 18,776,138 W 33,742,142 W 13,019,101 W 23,217,738 1 Total expenses consist of cost of sales and selling and administrative expenses. 24. Finance Income and Expenses Finance income and expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Finance income Interest income W 304,478 W 493,257 W 91,330 W 197,326 Dividend income 10,027,945 13,979,567 3,440 7,547 Foreign exchange differences1 2,149,342 5,080,461 1,337,879 1,966,506 Gain on valuation of financial instruments 53,237,425 63,178,974 232,143 2,131,861 Others 139,624 182,905 54,588 103,499 65,858,814 82,915,164 1,719,380 4,406,739 Finance expenses Interest expenses 154,334 321,277 220,451 477,961 Foreign exchange differences1 1,002,133 2,359,881 1,950,849 2,457,917 Loss on derivatives 2,479,736 3,978,528 Others 4,700 4,700 968 994 3,640,903 6,664,386 2,172,268 2,936,872 Net finance income (expense) W 62,217,911 W 76,250,778 W (452,888 ) W 1,469,867 1 The foreign exchange differences gain from long-term investment assets amounting to W495,911 million (2025: foreign exchange differences loss of W67,465 million) are included for the six-month period ended June 30, 2026. 49 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 25. Other Income and Expenses (1) Other income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Gain on disposal of property, plant and equipment W 2,272 W 12,357 W 14,748 W 59,657 Gain on disposal of intangible assets 1,037 1,037 Others 11,566 16,504 14,094 48,128 W 13,838 W 28,861 W 29,879 W 108,822 (2) Other expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Donation W 34,240 W 37,322 W 48,456 W 52,824 Loss on disposal of property, plant and equipment 2,419 9,432 24,336 26,157 Depreciation of idle property, plant and equipment 1,977 5,278 11,534 23,109 Others 7,244 8,385 245 84,345 W 45,880 W 60,417 W 84,571 W 186,435 50 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 26. Income Tax Expense Income tax expense is recognized based on management s best estimate of the average annual effective income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period. Income tax expense includes current tax expense adjustments related to prior period. 27. Earnings per Share Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Parent Company by the weighted average number of outstanding ordinary shares during the three-month and six-month periods ended June 30, 2026 and 2025. (1) Basic earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won, except for shares and per share amounts) 2026 2025 Three months Six months Three months Six months Profit attributable to ordinary shareholders of the Parent Company W 93,820,236 W 134,150,412 W 6,997,228 W 15,104,309 Weighted average number of outstanding ordinary shares1 710,083,326 707,746,374 690,395,022 690,019,799 Basic earnings per share (in Korean won) W 132,126 W 189,546 W 10,135 W 21,890 1 Weighted average number of outstanding ordinary shares is calculated as follows: (In shares) 2026 2025 Three months Six months Three months Six months Issued ordinary shares 712,702,365 715,999,050 728,002,365 728,002,365 Acquisition of treasury shares (2,619,039 ) (8,252,676 ) (37,607,343 ) (37,982,566 ) Weighted average number of outstanding ordinary shares 710,083,326 707,746,374 690,395,022 690,019,799 51 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Earnings per Share, Continued (2) Diluted earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won, except for shares and per share amounts) 2026 2025 Three months Six months Three months Six Months Profit attributable to ordinary shareholders of the Parent Company W 93,820,236 W 134,150,412 W 6,997,228 W 15,104,309 Adjustment: Changes in profit attributable to ordinary shareholders of the Parent Company due to the exercise of Restricted Stock Units (RSUs) related to subsidiaries (183,856 ) (234,811 ) (2,185 ) Interest expense(After-tax) 350 5,144 22,975 46,088 Loss on foreign currency translation(After-tax) (70,859 ) (204,350 ) (217,996 ) Diluted profit attributable to ordinary shareholders of the Parent Company 93,565,871 133,920,745 6,815,853 14,930,216 Weighted average number of diluted outstanding ordinary shares1 711,647,617 711,615,569 711,467,642 711,094,878 Diluted earnings per share (in Korean won) W 131,478 W 188,193 W 9,580 W 20,996 1 Weighted average number of diluted outstanding ordinary shares is calculated as follows: (In shares) 2026 2025 Three months Six months Three months Six months Weighted average number of outstanding ordinary shares 710,083,326 707,746,374 690,395,022 690,019,799 Share options 579,543 638,376 933,331 935,790 Exchangeable bond 984,748 3,230,819 20,139,289 20,139,289 Weighted average number of diluted outstanding ordinary shares 711,647,617 711,615,569 711,467,642 711,094,878 52 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others (1) Details of related parties as of June 30, 2026 are as follows: Type Name of related parties Associates Stratio, Inc., SK China Company Limited, Gemini Partners Pte. Ltd., TCL Fund, SK South East Asia Investment Pte. Ltd., Hushan Xinju (Chengdu) Venture Investment Center (Smartsource), Prume Social Farm, Co., Ltd., Wuxi xinfa IC industry park., Ltd., Mirae Asset Committee Semiconductor No.1 Startup Venture Private Equity Investment Co., Ltd., L&S (No.10) Early Stage III Investment Association, SiFive Inc., YD-SK-KDB Social Value, Ningbo Zhongxin Venture Capital Partnership (Limited Partnership), Jiangsu KVTS Semiconductor science and Technology Co., Ltd., SAPEON INC., SK Japan Inc., SK Americas, Inc. Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd., SK hynix system ic (Wuxi) Co., Ltd., and its subsidiaries, Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor, Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor, Semiconductor Ecosystem Fund Other related parties SK Square Co., Ltd., which has significant influence over the Group, and its subsidiaries, SK Holdings Co., Ltd., which has control over SK Square Co., Ltd., and its subsidiaries 53 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (2) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) For the three-month period ended June 30, 2026 Company Sales and others Purchase and others Asset acquisition Associates SK China Company Limited W 12 W 2,933 W SK Japan Inc. 620 Wuxi xinfa IC industry park., Ltd 12 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 819 202,241 3,664 SK hynix system ic (Wuxi) Co., Ltd. 2,964 SystemIC Solution 3,967 130 Other related parties SK Telecom Co., Ltd. 7,098 16,091 14,620 SK Holdings Co., Ltd. 1 6,137 138,957 212,117 ESSENCORE Limited 1,668,026 SK Ecoplant Co., Ltd. 25,823 1,453,005 SK Energy Co., Ltd. 18,610 20,494 SK Networks Co., Ltd. 259 1,588 Chungcheong energy service Co., Ltd. 37 11,679 26 SK Siltron Co., Ltd. 13,732 122,583 SK Airplus Inc. 1,917 2,061 Techdream Co., Ltd. 36,521 SK Tri Chem Co., Ltd. 65 40,431 SK Aircore Co., LTD 191 35,094 53,736 SK Shieldus Co., Ltd. 222 28,239 4,593 SK Innovation Co., Ltd. 1,740 23,127 SK Square Co., Ltd. SK REIT Co., Ltd. 1,244 168 Clean Industrial REIT Co., Ltd. 6,169 FSK L&S Co., Ltd. 12 10,512 1,560 PRISM Energy International Pte. Ltd. 257,487 Others 32,509 107,512 1,105 W 1,784,140 W 1,065,725 W 1,744,594 54 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (2) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the six-month period ended June 30, 2026 Company Sales and others Purchase and others Asset acquisition Associates SK China Company Limited W 21 W 5,771 W SK Japan Inc. 1,065 Wuxi xinfa IC industry park., Ltd 44 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 1,297 418,903 9,102 SK hynix system ic (Wuxi) Co., Ltd. 6,406 SystemIC Solution 8,038 3,775 Other related parties SK Telecom Co., Ltd. 9,066 31,868 17,101 SK Holdings Co., Ltd. 1 11,463 268,072 214,507 ESSENCORE Limited 3,218,344 SK Ecoplant Co., Ltd. 44,999 2,439,375 SK Energy Co., Ltd. 28,171 57,344 SK Networks Co., Ltd. 557 3,124 Chungcheong energy service Co., Ltd. 62 29,848 26 SK Siltron Co., Ltd. 23,808 244,669 SK Airplus Inc. 3,758 3,924 Techdream Co., Ltd. 69,068 SK Tri Chem Co., Ltd. 269 83,339 SK Aircore Co., LTD 330 68,850 53,736 SK Shieldus Co., Ltd. 422 65,515 5,158 SK Innovation Co., Ltd. 3,036 45,684 40 SK Square Co., Ltd. 12 SK REIT Co., Ltd. 2,487 168 Clean Industrial REIT Co., Ltd. 12,424 FSK L&S Co., Ltd. 28 23,186 2,896 PRISM Energy International Pte. Ltd. 430,286 Others 58,783 192,188 2,965 W 3,418,870 W 2,061,434 W 2,745,074 1 Royalty expense for the use of the SK brand for the six-month period ended June 30, 2026 is included. 55 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (2) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the three-month period ended June 30, 2025 Company Sales and others Purchase and others Asset acquisition Associates SK China Company Limited W 7 W 3,088 W Prume Social Farm, Co., Ltd. 20 SK Japan Inc. 11 891 Wuxi xinfa IC industry park., Ltd 47 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 5,032 193,673 13,703 SK hynix system ic (Wuxi) Co., Ltd. 2,359 SK hynix system ic Wuxi solutions Inc. 5,083 Other related parties SK Telecom Co., Ltd. 11,235 12,890 5,286 SK Holdings Co., Ltd.1 6,650 121,249 140,271 ESSENCORE Limited 418,767 SK Ecoplant Co., Ltd. 14,828 743,372 SK Energy Co., Ltd. 13,189 21,727 SK Networks Co., Ltd. 1,653 749 200 SK enpulse Co., Ltd. 23 11,964 Chungcheong energy service Co., Ltd. 14 8,885 SK Specialty Co., Ltd. SK Siltron Co., Ltd. 10,844 127,013 SK Airplus Inc. 160 26,045 Techdream Co., Ltd. 37,399 SK Tri Chem Co., Ltd. 326 34,536 SK Shieldus Co., Ltd. 211 25,560 2,576 SK Innovation Co., Ltd. 1,989 18,558 SK Square Co., Ltd. 2 SK REIT Co., Ltd. 1,386 284 Clean Industrial REIT Co., Ltd. 6,748 FSK L&S Co., Ltd. 13 10,324 817 SK LNG Trading Pte., Ltd. 98,612 Others 39,086 77,898 33,951 W 531,482 W 839,262 W 940,460 56 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (2) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the six-month period ended June 30, 2025 Company Sales and others Purchase and others Asset acquisition Associates SK China Company Limited W 13 W 6,320 W Prume Social Farm, Co., Ltd. 38 SK Japan Inc. 11 1,813 Wuxi xinfa IC industry park., Ltd 47 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 9,910 371,769 20,670 SK hynix system ic (Wuxi) Co., Ltd. 4,935 SK hynix system ic Wuxi solutions Inc. 10,102 Other related parties SK Telecom Co., Ltd. 12,804 26,075 5,286 SK Holdings Co., Ltd.1 11,699 192,248 141,050 ESSENCORE Limited 765,459 SK Ecoplant Co., Ltd. 26,242 1,035,235 SK Energy Co., Ltd. 17,692 79,662 SK Networks Co., Ltd. 3,173 2,021 232 SK enpulse Co., Ltd. 815 25,642 Chungcheong energy service Co., Ltd. 17 28,100 SK Specialty Co., Ltd. 1,017 26,810 SK Siltron Co., Ltd. 21,664 249,621 SK Airplus Inc. 248 51,816 Techdream Co., Ltd. 68,031 SK Tri Chem Co., Ltd. 591 69,134 SK Shieldus Co., Ltd. 410 55,790 3,388 SK Innovation Co., Ltd. 3,480 42,880 SK Square Co., Ltd. 28 SK REIT Co., Ltd. 2,785 284 Clean Industrial REIT Co., Ltd. 13,563 FSK L&S Co., Ltd. 37 20,835 1,777 SK LNG Trading Pte., Ltd. 345,494 Others 68,989 135,402 34,940 W 959,336 W 1,815,896 W 1,242,862 1 Royalty expense for the use of the SK brand for the six-month period ended June 30, 2025 is included. 57 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (3) The balances from significant transactions as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Company Trade receivables and others Other payables and others Associates SK China Company Limited W W 6,002 SK Japan Inc. 655 2,485 TCL Fund 10,561 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 748 376,743 SK hynix system ic (Wuxi) Co., Ltd. 168,840 665 SystemIC Solution 1,311 44 Hystars Semiconductor(Wuxi) Co., Ltd. 51,444 Other related parties SK Telecom Co., Ltd. 1,942 15,401 SK Holdings Co., Ltd. 2,905 370,567 ESSENCORE Limited 758,500 SK Ecoplant Co., Ltd. 16,767 1,456,650 SK Energy Co., Ltd. 1,646 14,835 SK Networks Co., Ltd. 30 1,534 Chungcheong energy service Co., Ltd. 3,385 SK Siltron Co., Ltd. 91,767 80,350 SK Airplus Inc. 1,897 122,307 Techdream Co., Ltd. 8,420 SK Tri Chem Co., Ltd. 21 13,876 SK Aircore Co., LTD 76 430,452 SK Shieldus Co., Ltd. 86 17,947 SK Innovation Co., Ltd. 4,114 2,771 SK REIT Co., Ltd. 17,330 131,635 Clean Industrial REIT Co., Ltd. 499,077 FSK L&S Co., Ltd. 4 4,103 PRISM Energy International Pte. Ltd. 160,599 Others 31,400 90,362 W 1,110,600 W 3,861,654 58 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (3) The balances from significant transactions as of June 30, 2026 and December 31, 2025 are as follows, Continued: (In millions of Korean won) December 31, 2025 Company Trade receivables and others Other payables and others Associates SK China Company Limited W 5 W 9,372 Prume Social Farm, Co., Ltd. 8 SK Japan Inc. 620 3,242 TCL Fund 7,809 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 664 374,408 SK hynix system ic (Wuxi) Co., Ltd. 261,110 SK hynix system ic Wuxi solutions Inc. 1,814 156 Hystars Semiconductor (Wuxi) Co., Ltd. 46,410 Other related parties SK Telecom Co., Ltd. 845 23,483 SK Holdings Co., Ltd. 2,322 328,169 ESSENCORE Limited 1,012,569 SK Ecoplant Co., Ltd. 11,819 2,792,416 SK Energy Co., Ltd. 2,781 25,495 SK Networks Co., Ltd. 90 2,659 SK enpulse Co., Ltd. 705 Chungcheong energy service Co., Ltd. 7 6,330 SK Siltron Co., Ltd. 107,300 44,478 SK Airplus Inc. 326 698,786 Techdream Co., Ltd. 4,918 SK Tri Chem Co., Ltd. 117 12,267 SK Shieldus Co., Ltd. 79 18,026 SK Innovation Co., Ltd. 917 4,142 SK Square Co., Ltd. 198 SK REIT Co., Ltd. 17,330 140,571 Clean Industrial REIT Co., Ltd 524,661 FSK L&S Co., Ltd. 4 5,382 PRISM Energy International Pte. Ltd. 215,472 Others 31,688 173,308 W 1,460,414 W 5,454,864 59 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (4) Key management compensation The Group considers registered directors of the Parent Company who have authority and responsibility for planning, directing and controlling the activities of the Group as key management. The compensation paid to key management for employee services for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) Period ended June 30 2026 2025 Details Three months Six months Three months Six months Salaries W 2,443 W 7,434 W 1,598 W 5,339 Defined benefit plan related expenses 241 498 203 407 Share-based payments 4,547 4,576 258 502 W 7,231 W 12,508 W 2,059 W 6,248 (5) The significant transactions between the Group and the companies that are in the same conglomerate group according to Fair Trade Law for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows. These entities are not related parties according to Korean IFRS 1024 Related Party Disclosures. (In millions of Korean won) Period ended June 30, 2026 Sales and others Purchase and others Asset acquisition Name of entity Three months Six months Three months Six months Three months Six months SK Chemicals Co., Ltd. W 2,589 W 5,136 W W W W SK Bioscience Co., Ltd. 939 1556 SMCore. Inc 30 761 1,329 1,228 4,045 Korea Nexlene Company 1,397 2351 Others 401 739 15 30 W 5,326 W 9,812 W 776 W 1,359 W 1,228 W 4,045 (In millions of Korean won) Period ended June 30, 2025 Sales and others Purchase and others Asset acquisition Name of entity Three months Six months Three months Six months Three months Six months SK Chemicals Co., Ltd. W 2,753 W 4,915 W W W W SK Bioscience Co., Ltd. 504 801 UNA Digital Inc. 618 618 SMCore. Inc 70 243 377 759 Korea Nexlene Company 1,763 3,198 Others 488 821 W 5,578 W 9,978 W 995 W 1,377 W W 60 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (6) The balances of significant transactions between the Group and the companies that are in the same conglomerate group designated by Fair Trade Law as of June 30, 2026 and December 31, 2025 are as follows. These entities are not related parties according to Korean IFRS 1024 Related Party Disclosures. (In millions of Korean won) June 30, 2026 Name of entity Trade receivables and others Other payables and others SK Chemicals Co., Ltd. W 934 W SK Bioscience Co., Ltd. 667 SMCore Inc. 475 Korea Nexlene Company 155 Others 125 W 1,881 W 475 (In millions of Korean won) December 31, 2025 Name of entity Trade receivables and others Other payables and others SK Chemicals Co., Ltd. W 707 W SK Bioscience Co., Ltd. 245 SMCore Inc. 18 5,637 Korea Nexlene Company 122 Others 178 W 1,270 W 5,637 (7) The right-of-use assets and lease liabilities recognized regarding the lease agreements with HITECH Semiconductor (Wuxi) Co., Ltd. and Hystars Semiconductor (Wuxi) Co., Ltd., a joint venture for the six-month period ended June 30, 2026 amount to W9,102 million (2025: W20,670 million) and W9,102 million (2025: W20,670 million), respectively, and lease payments to HITECH Semiconductor (Wuxi) Co., Ltd. and Hystars Semiconductor (Wuxi) Co., Ltd., a joint venture for the six-month period ended June 30, 2026 amount to W28,966 million (2025: W35,925 million). The right-of-use assets and lease liabilities recognized regarding the lease agreements with other related parties including SK Broadband Co., Ltd. for the six-month period ended June 30, 2026 increased by W56,458 million (2025: W30,614 million increased) and increased by W56,458 million (2025: W30,614 million increased), respectively, and lease payments to the other related parties including SK Aircore Co., Ltd. for the six-month period ended June 30, 2026 amount to W91,460 million (2025: W84,012 million). (8) As of June 30, 2026, the Group provides a payment guarantee amounting to RMB 566 million to Wuxi Xinfa Group Co., Ltd. on behalf of Hystars Semiconductor (Wuxi) Co., Ltd., a joint venture. (9) The establishment of the subsidiary is explained in Note 1, and the acquisitions and additional investments of associates are explained in Note 10. 61 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Transactions with Related Parties and Others, Continued (10) Financial transactions with related parties for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) For the six-month period ended June 30, 2026 Company Dividend received Dividend paid Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. W 20,533 W Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 430 Other related parties SK Square Co., Ltd. 328,725 W 20,963 W 328,725 (In millions of Korean won) For the six-month period ended June 30, 2025 Company Dividend received Dividend paid Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. W 21,472 W Other related parties SK Square Co., Ltd. 245,302 W 21,472 W 245,302 62 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 29. Commitments and Contingencies (1) As of June 30, 2026, the Group is involved in various legal claims and litigation. In connection with those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation, nor is it expected any of these claims or litigation will have a significant impact on the Group s financial position or operating results in the event an outflow of resources is ultimately necessary. (2) Back-end process service contract with HITECH Semiconductor (Wuxi) Co., Ltd. ( HITECH ) The Group has entered into an agreement with HITECH to be provided with back-end process service by HITECH. The conditions of the service provided includes package, package test, modules and others. According to the agreement, the Group has paid a certain level of guaranteed margin to HITECH as the Group has priority to use HITECH s equipment. (3) Assets provided as collateral Details of assets provided as collateral as of June 30, 2026 are as follows: (In millions of Korean won and millions of foreign currencies) Book value Pledged amount Category Amount Currency Amount in USD Amount in KRW Remark Land and buildings W 25,545 KRW 14,854 Borrowings for equipment and others Machinery USD 600 924,900 829,108 KRW 1,480,000 USD 600 924,900 W 854,653 KRW 1,494,854 (In millions of Korean won and millions of foreign currencies) Book value Collateral liabilities amount Category Amount Currency Amount in USD Amount in KRW Remark Land and buildings W 25,545 KRW 961 Borrowings for equipment and others Machinery USD 63 96,344 829,108 KRW 1,300,000 USD 63 96,344 W 854,653 KRW 1,300,961 63 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 29. Commitments and Contingencies, Continued (4) Financing agreements Details of credit lines with financial institutions as of June 30, 2026 are as follows: (In millions of Korean won and millions of foreign currencies) Financial Institution Commitment Currency Amount The Parent Company Hana Bank and others Import finance and others including usance USD 330 Comprehensive limit contract for import and export including usance USD 1,582 Overdrafts with banks KRW 20,000 Accounts receivable factoring contracts which have no right to recourse KRW 30,000 Supplier finance arrangement KRW 2,360,000 SK hynix Semiconductor (China) Ltd. Agricultural Bank of China and others Import finance and others including usance RMB 950 USD 490 SK hynix America Inc. and other sales subsidiaries Citibank and others Accounts receivable factoring contracts which have no right to recourse USD 737 Domestic subsidiaries Hana Bank and others Supplier finance arrangement KRW 40,720 (5) The Group s commitments in relation to future capital expenditures on property, plant and equipment that have not been recognized as of June 30, 2026 are W61,484,533 million (as of December 31, 2025: W6,667,863 million). (6) Investment in KIOXIA Holdings Corporation ( KIOXIA ) With regard to the Group s interests in KIOXIA through its investments in BCPE Pangea Cayman2 Limited, the equity interests in KIOXIA that the Group may hold, directly or indirectly, are limited to a certain percentage for a specified period following the acquisition date. In addition, during the same restricted period, the Group does not have the right to appoint directors of KIOXIA and, as a result, is unable to exercise significant influence over KIOXIA s operating and management. 64 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 29. Commitments and Contingencies, Continued (7) Acquisition of the Intel NAND business In the process of obtaining a conditional business combination approval for the Intel NAND business acquisition from the Chinese competition authority (Chinese State Administration for Market Regulation) in connection with the first closing of the Intel NAND business completed during the year ended December 31, 2021, the Group was imposed with certain conditions, mainly including the obligation to maintain a reasonable pricing policy, increase production and to support the entry of third-party competitors into the Chinese eSSD market. These obligations apply for a five-year period from December 2021. After the end of this period, the Group may apply for a waiver of the conditions, and the Chinese State Administration for Market Regulation will determine whether to approve the waiver based on the competitive landscape of the Chinese eSSD market at that time. (8) The Group entered into supplier finance arrangements. In accordance with the arrangements, when the finance providers pay the payables related to the Group s trade and other payables to the suppliers, the Group pays the finance providers on the payment due date. In order for the finance providers pay the receivable, the Group had to have received the goods or services and approved the invoices. If suppliers choose early collection of payment, the finance providers pay the amount before the payment due date. The Group settles the trade and other payables with the finance providers on the payment due date. All trade and other payables subject to the supplier finance arrangements are included in trade and other payables in the Group s consolidated statement of financial position. As of June 30, 2026, the amount paid to suppliers under the supplier finance arrangements is W736,236 million. Meanwhile, the amount of the Group s trade and other payables related to supplier finance arrangements does not have a significant effect on non-cash transactions of cash and cash equivalents. 65 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 30. Consolidated Interim Statements of Cash Flows (1) Reconciliations between profit and cash generated from operations for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Profit for the period W 134,268,502 W 15,104,411 Adjustment Income tax expense 40,056,711 2,917,401 Interest expense 321,277 477,961 Interest income (493,257 ) (197,326 ) Depreciation 7,340,867 6,373,150 Amortization 418,422 426,775 Defined benefit plan 109,396 117,747 Loss on foreign currency translation 931,879 1,093,261 Gain on foreign currency translation (1,846,340 ) (1,285,652 ) Gain on disposal of financial instruments (182,325 ) (103,499 ) Gain on disposal of property, plant and equipment (12,357 ) (59,657 ) Share of loss 46,900 23,775 Gain on valuation of financial instruments (63,178,974 ) (2,131,861 ) Loss on derivatives 3,978,076 Dividend income (13,979,567 ) (7,547 ) Share-based payments 74,639 206,308 Others 101,191 19,790 Changes in operating assets and liabilities Increase in trade receivables (23,342,531 ) (1,049,365 ) Decrease in loans and other receivables 358,862 184,036 Increase in inventories (3,328,550 ) (311,353 ) Decrease (increase) in other assets (317,382 ) 91,941 Decrease in trade payables (2,393,796 ) (62,653 ) Increase in other payables 294,948 13,899 Increase in other non-trade payables 4,729,279 141,650 Increase (decrease) in provisions (48,422 ) 29,101 Increase (decrease) in other liabilities 1,863,692 (20,615 ) Payment of defined benefit liabilities 772 1,946 Contributions to plan assets (172,839 ) (265,487 ) Cash generated from operating activities W 85,599,073 W 21,728,137 (2) Details of significant transactions without inflows and outflows of cash for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Increase in other payables related to property, plant and equipment W W 526,738 Decrease in derivative liabilities and exchangeable bonds due to the exercise of exchange rights 5,792,195 Transfer to current assets held for sale 87,686 Transfer to current liabilities held for sale 13,199 (3) The Group presented the inflow and outflow of cash from short-term investment assets, etc. which are frequently traded and have a large total amount and mature in a short period of time, as net increases and decreases. 66 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 31. Share-based Payment (1) Details of the granted share-based payment (a) The Parent Company accounts for share-based payment, with options granted to employees to choose either cash-settled or equity-settled share-based payment, in accordance with the substance of transactions and the details of the share options as of June 30, 2026 are as follows: (In shares) Total numbers of share option granted1 Forfeited or Cancelled Exercised Outstanding at June 30, 2025 10th 53,329 10,764 10,504 32,061 12th 2 6,405 6,405 13th 3 74,705 29,851 44,854 14th 2 192,998 59,167 27,207 106,624 327,437 99,782 88,970 138,685 Grant date Service Period for Vesting Exercisable Period Exercise price1 (in Korean won) 10th March 20, 2020 March 20, 2020 - March 20, 2023 March 21, 2023 - March 20, 2027 W 86,548 12th 2 March 30, 2021 March 30, 2021 - March 30, 2023 March 31, 2023 - March 30, 2026 138,980 13th 3 March 30, 2021 March 30, 2021 - March 30, 2023 March 31, 2023 - March 30, 2026 138,980 14th 2 March 30, 2022 March 30, 2022 - March 30, 2024 March 31, 2024 - March 30, 2027 124,220 1 During the six-month period ended June 30, 2026, the numbers of share option granted and the exercise price were adjusted due to the retirement of treasury shares. 2 During the six-month period ended June 30, 2026, the share options were exercised as equity-settled share-based payment. 3 During the six-month period ended June 30, 2026, the share options were exercised as equity-settled and cash-settled share-based payment. 67 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 31. Share-based Payment, Continued (1) Details of the granted share-based payment, Continued (b) Details of equity-settled share-based payment granted by the Parent Company are as follows: 1-1st 1-2nd 2nd 3rd Grant date 2022-03-17 2022-04-27 2023-06-28 2024-04-30 Types of shares to be issued Registered common shares Registered common shares Registered common shares Registered common shares Grant method Reissue of treasury shares Reissue of treasury shares Reissue of treasury shares Reissue of treasury shares Number of shares Initial grant size * TSR * Adjustment ratio / Stock price on exercise date1,3 Initial grant size * TSR * Adjustment ratio / Stock price on exercise date1,3 Initial grant size * (Adjustment ratio + increase rate of stock price - increase rate of KOSPI200)2,3 Initial grant size * (Adjustment ratio + increase rate of stock price - increase rate of KOSPI200)2 Base stock price (in Korean won) W124,000 W108,500 W79,975 W 135,975 Exercisable period March 17, 2025 ~ March 17, 20294 April 27, 2025 ~ April 27, 20295 January 1, 2026 lump sum payment5 January 1, 2027 lump sum payment Service period for vesting 2 years service from the grant date 2 years service from the grant date 3 years service from January 1, 20236 3 years service from January 1, 20246 1 TSR (Total shareholder return) is calculated as (Stock price on exercise notification date Base stock price + company s total dividends per share from grant date to exercise notification date)/base stock price , and the adjustment ratio considers the Group s TSR compared to the TSR of its industry peers. 2 The adjustment ratio considers increase rate of stock price, and the maximum adjusted shares is 2 times of initial grant shares. If the increase rate of stock price rises by 100% or higher and exceeds the increase rate of KOSPI200 by 50% points, additional shares equal to the initial grant will be paid. 3 Some of the 1-1st and 1-2nd share-based payments were cancelled and a replacement amount was granted in the 2nd share-based payment. 4 Stock options were exercised during the year ended December 31, 2025 and a portion of the shares remains unpaid as of June 30, 2026. 5 Stock options were exercised during the six-month period ended June 30, 2026 and a portion of the shares remains unpaid as of June 30, 2026. 6 When employed for more than 2 years but less than 3 years, the granted amount is adjusted in proportion to the period of service. (c) In addition to above share options granted by the Parent Company, restricted stock units (RSUs) for the Parent Company s subsidiary, Solidigm Inc., are also granted to the subsidiary and its employees. (In shares) Grant cycle Total numbers of share option granted Forfeited or Cancelled Exercised Quarterly 191,525,548 62,857,867 56,204,006 68 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 31. Share-based Payment, Continued (2) Details of liabilities recognized for stock appreciation rights as of June 30, 2026 are as follows: (In millions of Korean won) June 30, 2026 Stock appreciation rights liabilities W 59,077 (3) Measurement of fair value (a) The compensation cost is calculated by applying a binomial option-pricing model in estimating the fair value of the option as of June 30, 2026. The inputs used are as follows: 10th 12th 13th 14th Share price (Closing stock price on valuation date, in Korean won) W 530,000 W 530,000 W 530,000 W 530,000 Expected volatility 46.40 % 46.40 % 46.40 % 46.40 % Estimated fair value of share option (in Korean won) W 445,270 W 393,940 W 393,940 W 408,492 Dividend yield ratio 0.42 % 0.42 % 0.42 % 0.42 % Risk free ratio 2.70 % 2.47 % 2.47 % 2.71 % (b) The compensation cost regarding the equity-settled share-based payment granted by the Parent Company is calculated by applying a binomial option-pricing model in estimating the fair value of the option. The inputs used to measure the fair value of the share-based payment as of the grant date are as follows. 1-1st 1-2nd 2nd 3rd Expected volatility 33.92 % 34.22 % 34.81 % 36.85 % Per-share fair value of the option (in Korean won) W 52,729 W 42,064 W 155,443 W 224,203 Dividend yield ratio1 1.50 % 1.10 % Risk-free interest rate (Government bonds yield) 2.65 % 3.19 % 3.60 % 3.53 % 1 Payout ratio was not taken into consideration as it was assumed that the stock price decline due to dividends would be compensated as the dividend amount until the exercise period is added in the calculation of 1-1st and 1-2nd TSR. (4) The compensation expense for the six-month period ended June 30, 2026 is W148,663 million (2025: W51,686 million). 69 SK hynix Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 32. Subsequent Event (1) The Group listed 177,900,000 American Depositary Receipts (ADRs), representing 17,790,000 shares of common stock, on the Nasdaq Global Select Market in the United States on July 10, 2026. In connecting with the ADR listing, the Group newly issued 17,790,000 shares of common stock through a third-party allotment to Citibank, N.A., the overseas depositary, and the new shares were subsequently listed on the KOSPI Market of the Korea Exchange on July 29, 2026. Issuance of new shares 17,790,000 shares of common stock Method of issuance Paid-in capital increase by third-party allotment Issue price per new share1 USD 1,490 Number of listed securities1 177,900,000 DRs issued Listing exchange (Country) Nasdaq Global Select Market (U.S.A) Total issue amount USD 26,507,100,000 Purpose of financing Facility funds 1 Each share of underlying common stock represents 10 ADRs. (2) On April 22, 2026, the Board of Directors resolved to merge SK hynix Semiconductor (Dalian) Co., Ltd. with its subsidiary, SK hynix semiconductor storage technology (Dalian) Co., Ltd. Subsequently, a merger agreement was entered into by the two entities, and the merger took effect on July 1, 2026. 70 SK hynix Inc. Condensed Separate Interim Financial Statements (Unaudited) June 30, 2026 and 2025 (With Independent Auditors Review Report Thereon) Index to Separate Financial Statements Page(s) Independent Auditors Review Report 1 Condensed Separate Interim Financial Statements Condensed Separate Interim Statements of Financial Position 3 Condensed Separate Interim Statements of Comprehensive Income 5 Condensed Separate Interim Statements of Changes in Equity 6 Condensed Separate Interim Statements of Cash Flows 7 Notes to the Condensed Separate Interim Financial Statements 8 Independent Auditors Review Report Based on a report originally issued in Korean To the Shareholders and Board of Directors of SK hynix Inc. Reviewed Financial Statements We have reviewed the accompanying condensed separate interim financial statements of SK hynix Inc. (the Company ), which comprise the condensed separate interim statement of financial position as of June 30, 2026, the condensed separate interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2026 and 2025, the condensed separate interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2026 and 2025, and notes comprising material accounting policy information and other explanatory information. Management s Responsibility for the Condensed Separate Interim Financial Statements Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standards No. 1034, Interim Financial Reporting, and for such internal controls as management determines necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews. We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Security and Futures Commission of the Republic of Korea. A review of interim financial information consists principally of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed separate interim financial statements do not present fairly, in all material respects, in accordance with Korean International Financial Reporting Standards No. 1034, Interim Financial Reporting. 1 Other Matters The separate statement of financial position of the Company as of December 31, 2025, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this review report, were audited by us in accordance with Korean Standards on Auditing, and our report thereon, dated March 4, 2026, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2025, presented for comparative purposes, is not different from that audited by us from which it was derived in all material respects. The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries. /s/ KPMG Samjong Accounting Corp. KPMG Samjong Accounting Corp. Seoul, Korea August 14, 2026 This report is effective as of August 14, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any. 2 SK hynix Inc. Separate Interim Statements of Financial Position June 30, 2026 and December 31, 2025 (Unaudited) (In millions of Korean won) Notes June 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents 4,5 W 4,537,067 W 2,403,922 Short-term financial instruments 4,5 22,350,600 14,072,500 Short-term investment assets 4,5 8,249,648 1,555,767 Trade receivables, net 4,5,6,27 46,949,872 16,354,297 Loans and other receivables, net 4,5,6,27 1,014,115 286,767 Other financial assets 4,5,17 22,523 195,196 Inventories, net 7 13,102,529 10,396,303 Current tax assets 4,599 4,599 Other current assets 8 1,363,927 1,027,587 97,594,880 46,296,938 Non-current assets Investments in subsidiaries, associates and joint ventures 9 67,779,077 23,555,649 Long-term financial instruments 4,5 7,100,011 Long-term investment assets 4,5 69,709,791 14,285,809 Loans and other receivables, net 4,5,6,27 5,502,224 6,883,188 Other financial assets 4,5,17 332 1,100,011 Property, plant and equipment, net 10,28 77,867,829 67,394,741 Right-of-use assets, net 11,27 1,755,792 1,754,246 Intangible assets, net 12 3,484,392 3,232,687 Investment property, net 182 188 Deferred tax assets 2,789,409 Employee benefit assets 16 1,506,551 1,527,352 Other non-current assets 8 115,711 83,711 234,821,892 122,606,991 Total assets W 332,416,772 W 168,903,929 See accompanying notes to the condensed separate interim financial statements. 3 SK hynix Inc. Separate Interim Statements of Financial Position, Continued June 30, 2026 and December 31, 2025 (Unaudited) (In millions of Korean won) Notes June 30, 2026 December 31, 2025 Liabilities Current liabilities Trade payables 4,5,27 W 3,662,601 W 3,317,619 Other payables 4,5,19,27 5,777,682 6,298,382 Other non-trade payables 4,5,27 10,723,623 5,242,157 Borrowings 4,5,13,28 3,358,541 6,324,248 Other financial liabilities 4,5,17 322 4,913,046 Provisions 15 344,485 376,697 Current tax liabilities 30,785,191 6,890,244 Lease liabilities 4,5,11,27 432,330 465,066 Other current liabilities 14 545,152 709,127 55,629,927 34,536,586 Non-current liabilities Long-term other payables 4,5 365,734 370,227 Other non-trade payables 4,5,27 10,981 11,115 Borrowings 4,5,13,28 12,386,143 13,836,207 Other financial liabilities 4,5,17 1,457 Deferred tax liabilities 7,576,072 Lease liabilities 4,5,11,27 1,585,367 1,580,034 Other non-current liabilities 14 2,789,369 1,249,741 24,713,666 17,048,781 Total liabilities 80,343,593 51,585,367 Equity Capital stock 18 3,657,652 3,657,652 Capital surplus 18 11,690,042 8,778,664 Other equity 18,30 (242,620 ) (1,348,598 ) Accumulated other comprehensive income 18 (302 ) 8,279 Retained earnings 19 236,968,407 106,222,565 Total equity 252,073,179 117,318,562 Total liabilities and equity W 332,416,772 W 168,903,929 See accompanying notes to the condensed separate interim financial statements. 4 SK hynix Inc. Separate Interim Statements of Comprehensive Income Three-month and Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won, except per share information) Period Ended June 30 2026 2025 Notes Three months Six months Three months Six months Revenue 20,27 W 74,025,722 W 122,084,310 W 19,549,466 W 35,494,760 Cost of sales 22,27 12,189,637 22,376,836 9,012,144 16,153,169 Gross profit 61,836,085 99,707,474 10,537,322 19,341,591 Selling and administrative expenses 21,22,27 4,557,870 7,803,948 2,088,245 4,129,211 Operating profit 57,278,215 91,903,526 8,449,077 15,212,380 Finance income 23 65,584,542 82,258,462 2,023,254 4,580,475 Finance expenses 23 3,418,701 6,265,874 1,969,513 2,658,564 Other income 24,27 101,013 188,207 51,301 175,023 Other expenses 24,27 39,358 50,184 67,124 74,159 Profit before income tax 119,505,711 168,034,137 8,486,995 17,235,155 Income tax expense 25 28,202,777 38,831,103 1,649,401 2,771,738 Profit for the period 91,302,934 129,203,034 6,837,594 14,463,417 Other comprehensive income (loss) Item that will never be reclassified to profit or loss: Remeasurements of defined benefit liability, net of tax 16 (30,148 ) (74,225 ) (2,638 ) (4,492 ) Items that are or may be reclassified to profit or loss: Gain (loss) on valuation of derivatives, net of tax 17 (428 ) (8,581 ) 6,491 (4,785 ) Other comprehensive income (loss) for the period, net of tax (30,576 ) (82,806 ) 3,853 (9,277 ) Total comprehensive income for the period W 91,272,358 W 129,120,228 W 6,841,447 W 14,454,140 Earnings per share 26 Basic earnings per share (in Korean won) 128,581 182,556 9,904 20,961 Diluted earnings per share (in Korean won) 128,199 181,570 9,356 20,098 See accompanying notes to the condensed separate interim financial statements. 5 SK hynix Inc. Separate Interim Statements of Changes in Equity Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won) Notes Capital stock Capital surplus Other equity Accumulated other comprehensive income (loss) Retained earnings Total equity Balance at January 1, 2025 W 3,657,652 W 4,465,558 W (2,191,549 ) W 6,428 W 65,288,998 W 71,227,087 Comprehensive income: Profit for the period 14,463,417 14,463,417 Remeasurements of defined benefit liabilities, net of tax 16 (4,492 ) (4,492 ) Loss on valuation of derivatives, net of tax 17 (4,785 ) (4,785 ) Total comprehensive income for the period (4,785 ) 14,458,925 14,454,140 Transactions with owners of the Company: Dividends paid 19 (1,159,114 ) (1,159,114 ) Disposal of treasury shares 18 150,654 78,296 228,950 Share-based payment transactions 30 9,014 9,014 Total transactions with owners of the Company 150,654 87,310 (1,159,114 ) (921,150 ) Balance at June 30, 2025 (Unaudited) W 3,657,652 W 4,616,212 W (2,104,239 ) W 1,643 W 78,588,809 W 84,760,077 Balance at January 1, 2026 W 3,657,652 W 8,778,664 W (1,348,598 ) W 8,279 W 106,222,565 W 117,318,562 Comprehensive income: Profit for the period 129,203,034 129,203,034 Remeasurements of defined benefit liabilities, net of tax 16 (74,225 ) (74,225 ) Loss on valuation of derivatives, net of tax 17 (8,581 ) (8,581 ) Total comprehensive income for the period (8,581 ) 129,128,809 129,120,228 Transactions with owners of the Company: Dividends paid 19 (1,594,365 ) (1,594,365 ) Disposal of treasury shares 18 6,995,013 257,846 7,252,859 Retirement of treasury shares 18 872,237 (872,237 ) Share-based payment transactions 30 (24,105 ) (24,105 ) Transfer of capital surplus to retained earnings 18,19 (4,083,635 ) 4,083,635 Total transactions with owners of the Company 2,911,378 1,105,978 1,617,033 5,634,389 Balance at June 30, 2026 W 3,657,652 W 11,690,042 W (242,620 ) W (302 ) W 236,968,407 W 252,073,179 See accompanying notes to the condensed separate interim financial statements. 6 SK hynix Inc. Separate Interim Statements of Cash Flows Six-month periods ended June 30, 2026 and 2025 (Unaudited) (In millions of Korean won) Notes 2026 2025 Cash flows from operating activities Cash generated from operations 29 W 74,637,038 W 18,353,837 Interest received 378,862 354,580 Interest paid (425,846 ) (449,761 ) Dividends received 14,903,667 372,040 Income tax paid (7,220,700 ) (3,071,924 ) Net cash provided by operating activities 82,273,021 15,558,772 Cash flows from investing activities Decrease in short-term financial instruments 9,287,500 1,837,500 Increase in short-term financial instruments (13,939,320 ) (5,737,500 ) Increase in short-term investment assets, net (6,629,849 ) (426,960 ) Decrease in loans and other receivables 1,151,233 1,264,045 Increase in loans and other receivables (6,833 ) (3,380 ) Proceeds from disposal of long-term investment assets 10,633,317 2,621 Acquisitions of long-term investment assets (3,503,029 ) (6,472 ) Increase in long-term financial instruments (9,600,000 ) Proceeds from disposal of property, plant and equipment 54,960 90,974 Acquisitions of property, plant and equipment (17,104,495 ) (9,784,624 ) Proceeds from disposal of intangible assets 80 2,125 Acquisitions of intangible assets (635,425 ) (431,461 ) Increase in subsidiaries(MMT), net (44,039,892 ) (203,594 ) Acquisitions of investments in subsidiaries (15,106 ) Proceeds from disposal of investments in associates 4,168 6,281 Acquisitions of investments in associates (7,100 ) (4,500 ) Cash outflow from business acquisition (1,454,406 ) Net cash used in investing activities (74,349,791 ) (14,849,351 ) Cash flows from financing activities Proceeds from borrowings 900,000 1,297,124 Repayments of borrowings (4,892,435 ) (1,313,644 ) Repayments of lease liabilities (244,556 ) (263,158 ) Dividends paid (1,594,365 ) (1,159,114 ) Proceeds from disposal of treasury shares 21,322 28,560 Net cash used in financing activities (5,810,034 ) (1,410,232 ) Effects of exchange rate changes on cash and cash equivalents 19,949 (23,300 ) Net increase (decrease) in cash and cash equivalents 2,133,145 (724,111 ) Cash and cash equivalents at the beginning of the period 2,403,922 2,992,694 Cash and cash equivalents at the end of the period W 4,537,067 W 2,268,583 See accompanying notes to the condensed separate interim financial statements. 7 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 1. General Information General information about SK hynix Inc. (the Company ) is as follows: The Company manufactures, distributes and sells semiconductor products. The Company was established on October 15, 1949 and its shares have been listed on the Korea Exchange since 1996. The Company s headquarter is located at 2091, Gyeongchung-daero, Bubal-eup, Icheon-si, Gyeonggi-do, South Korea, and the Company has manufacturing facilities in Icheon-si and Cheongju-si, South Korea. As of June 30, 2026, the shareholders of the Company are as follows: Number of shares Percentage of ownership (%) Shareholder June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 SK Square Co., Ltd. 146,100,000 146,100,000 20.50 20.07 Other investors 564,975,500 555,591,520 79.27 76.32 Treasury shares 1,626,865 26,310,845 0.23 3.61 712,702,365 728,002,365 100.00 100.00 The Company s ordinary shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange and the Luxembourg Stock Exchange, respectively. 8 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies 2.1 Basis of Separate Interim Financial Statements Preparation The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ( Korean IFRS ). The accompanying condensed separate interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Company s condensed separate interim financial statements have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting. These separate interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of June 30, 2026. 2.1.1 New and amended standards or interpretations adopted by the Company The Company has applied the following new and amended IFRS Standards or interpretations that are effective from January 1, 2026. (a) Amendments to Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures Disclosure requirements have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments do not have a significant impact on the separate interim financial statements. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion. Add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). (b) Annual Improvements to Korean IFRS -Volume 11 The amendments do not have a significant impact on the separate interim financial statements. Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards: Hedge accounting by a first-time adopter Korean IFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition and implementation guidance Korean IFRS 1109 Financial Instruments: Derecognition of lease liabilities and definition of transaction price Korean IFRS 1110 Consolidated Financial Statements: Determination of a de facto agent Korean IFRS 1007 Statement of Cash Flows: Cost Method 9 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.1.1 New and amended standards or interpretations adopted by the Company, Continued (c) Amendments to Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures - Contracts Referencing Nature-dependent Electricity Contracts referencing nature-dependent electricity are defined contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (for example, the weather). The amendments clarify that contracts to buy or sell such electricity are assessed for eligibility under the own-use exemption. In addition, the amendments modify hedge accounting requirements by allowing an entity to designate as the hedged item a variable nominal amount of forecast electricity transactions that reflect the nature-dependent variability of electricity and introduce additional disclosure requirements. The amendments do not have a significant impact on the separate interim financial statements. 2.1.2 New and amended standards or interpretations not yet adopted by the Company The following new accounting standards and interpretations that have been published and are not mandatory for June 30, 2026 reporting periods and have not been early adopted by the Company. (a) New Standard: Korean IFRS 1118 Presentation and Disclosure in Financial Statements Korean IFRS 1118 Presentation and Disclosure in Financial Statements replaces Korean IFRS 1001 Presentation of Financial Statements and includes new requirements aimed at enhancing comparability of financial performance between similar entities and providing more relevant information to users. While the amendments do not affect the recognition or measurement of items in the financial statements, they are expected to have an extensive impact on presentation and disclosure, including the income statement and the disclosure of management-defined performance measures. The standard should be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. In accordance with the retrospective application requirements, comparative information for the year ended December 31, 2026, shall be restated under Korean IFRS 1118. Management is in review for the impact of applying the new standard on the Company s financial statements. Based on a preliminary assessment, the following potential effects have been identified. 10 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.1.2 New and amended standards or interpretations not yet adopted by the Company, Continued Adoption of the standard is not expected to have an impact on the Company s net profit or loss; however, it will require revenues and expenses in the income statements to be classified into new categories, which is expected to have an impact on the calculation and presentation of operating profit (loss). According to the overall impact assessment conducted by the Company, the following items have been identified as potentially affecting operating profit (loss). Exchange differences currently aggregated in Finance Income and Finance Expenses in non-operating profit may need to be presented separately in the new categories, and certain foreign exchange gains and losses may be presented under operating profit (loss). The standard specifies detailed requirements for the categorization of gains and losses on derivative instruments. Such gains and losses should be presented in the same category as the income and expenses affected by the risks the derivative instruments are used to mitigate. Currently, the Company presents these gains and losses within finance income and expenses. Consequently, there may be changes to the location of these items in the income statement. Applying the concept of a useful structured summary and the enhanced principles of aggregation and disaggregation may result in changes to the line items presented in the primary financial statements. In addition, goodwill must be presented separately on the statement of financial position; therefore, the Company will present goodwill and other intangible assets as separate line items. The requirements for disclosing material information remain unchanged; therefore, the Company does not expect significant changes to the information currently disclosed in the Notes. However, as a result of the principles of aggregation and disaggregation, the way information is grouped may change. In addition, significant new disclosures will be required for the following matters. Management-defined performance measure A breakdown of line items classified by function within the operating category of the income statement into their nature (required only for specified nature expenses) Reconciliation of differences for each line item in the income statement between the amounts previously presented under Korean IFRS 1001 and the restated amounts by applying Korean IFRS 1118 for the comparative period immediately preceding the period in which this standard is first applied. There is a change in the presentation of interest received and interest paid in the statement of cash flows. Interest paid will be presented as cash flows from financing activities, and interest received as cash flows from investing activities, resulting in a change from the current presentation of cash flows from operating activities. 11 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 2. Material Accounting Policies, Continued 2.2 Accounting Policies Material accounting policies and method of computation used in the preparation of the separate interim financial statements are consistent with those of the separate annual financial statements for the year ended December 31, 2025, except for the changes due to the application of amendments and enactments of standards described in Note 2.1.1 and as described below. 2.2.1 Income tax expense Income tax expense for the interim period is recognized based on management s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual effective income tax rate is applied to the pre-tax income for the interim period. The Company is subject to the Global Minimum Tax (Pillar Two). The Company has not recognized additional income tax expenses in relation to Pillar Two during the six-month period ended June 30, 2026 and applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. 3. Critical Accounting Estimates and Assumptions The Company makes estimates and assumptions concerning the future. The estimates and assumptions are continuously assessed, considering historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These resulting accounting estimates may differ from the actual results. Critical accounting estimates and assumptions made in the preparation of these separate interim financial statements are consistent with those applied in the preparation of the separate annual financial statements for the year ended December 31, 2025, except for the estimates used to determine the income tax expense. 12 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 4. Carrying Amounts of Financial Instruments by Categories (1) Carrying amounts of financial assets by categories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income or loss Financial assets at amortized cost Others Total Cash and cash equivalents W W W 4,537,067 W W 4,537,067 Short-term financial instruments 222,500 22,128,100 22,350,600 Short-term investment assets 8,249,648 8,249,648 Trade receivables1 29,962 46,919,910 46,949,872 Loans and other receivables 6,516,339 6,516,339 Other financial assets 22,855 22,855 Long-term financial instruments 7,100,011 7,100,011 Long-term investment assets 69,709,791 69,709,791 W 78,181,939 W 29,962 W 87,201,427 W 22,855 W 165,436,183 1 The Company transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements when all the risks and rewards are substantially transferred. Accordingly, the Company recognized gain or loss on disposal of trade receivables. (In millions of Korean won) December 31, 2025 Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income or loss Financial assets at amortized cost Others Total Cash and cash equivalents W W W 2,403,922 W W 2,403,922 Short-term financial instruments 222,500 13,850,000 14,072,500 Short-term investment assets 1,555,767 1,555,767 Trade receivables1 5,200 16,349,097 16,354,297 Loans and other receivables 7,169,955 7,169,955 Other financial assets 1,100,011 195,196 1,295,207 Long-term investment assets 14,285,809 14,285,809 W 16,064,076 W 5,200 W 40,872,985 W 195,196 W 57,137,457 1 The Company transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements as when all the risks and rewards are substantially transferred. Accordingly, the Company recognized gain or loss on disposal of trade receivables. 13 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 4. Carrying Amounts of Financial Instruments by Categories, Continued (2) Carrying amounts of financial liabilities by categories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Financial liabilities at amortized cost Others Total Trade payables W 3,662,601 W W 3,662,601 Other payables 6,143,416 6,143,416 Other non-trade payables1 1,918,113 1,918,113 Borrowings2 15,744,684 15,744,684 Lease liabilities 2,017,697 2,017,697 Other financial liabilities 322 322 W 29,486,511 W 322 W 29,486,833 1 Among other non-trade payables, employee benefits liabilities that correspond to the Company s obligations under the employee benefit plan were excluded because they were not subject to disclosure of financial instruments. 2 The Company participated in supplier-financing arrangements under letters of credit, where financial institutions pay the Company s obligations to suppliers within a certain limit, and Compnay subsequently repays the financial institution. There were no short-term borrowings under the supplier financing arrangements. 14 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 4. Carrying Amounts of Financial Instruments by Categories, Continued (2) Carrying amounts of financial liabilities by categories as of June 30, 2026 and December 31, 2025 are as follows, Continued: (In millions of Korean won) December 31, 2025 Financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Others Total Trade payables W W 3,317,619 W W 3,317,619 Other payables 6,668,609 6,668,609 Other non-trade payables1 1,019,139 1,019,139 Borrowings2 20,160,455 20,160,455 Lease liabilities 2,045,100 2,045,100 Other financial liabilities 4,911,677 2,826 4,914,503 W 4,911,677 W 33,210,922 W 2,826 W 38,125,425 1 Among other non-trade payables, employee benefits liabilities that correspond to the Company s obligations under the employee benefit plan were excluded because they were not subject to disclosure of financial instruments. 2 The Company participated in supplier-financing arrangements under letters of credit, where financial institutions pay the Company s obligations to suppliers within a certain limit, and Company subsequently repays the financial institution. There were no short-term borrowings under the supplier financing arrangements. 15 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management (1) Financial risk management The Company s activities are exposed to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The separate interim financial statements do not include all the financial risk management policies and disclosures that are required in the separate annual financial statements; therefore, see the separate annual financial statements for full disclosure. There were no significant changes in risk management department and risk management policies subsequent to December 31, 2025. (a) Market risk (i) Foreign exchange risk The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar, Euro, Chinese Yuan and Japanese Yen. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities in foreign currencies. Monetary foreign currency assets and liabilities as of June 30, 2026 are as follows: (In millions of Korean won and millions of foreign currencies) Assets Liabilities Foreign currencies Korean won equivalent Foreign currencies Korean won equivalent USD 38,341 W 59,103,116 10,065 W 15,515,924 JPY 1,310 12,472 114,941 1,094,211 CNY 1,078 244,710 3 789 EUR 26 343 604,324 Also, as described in note 17, the Company entered into a currency interest rate swap contract to hedge interest rate risk and currency risk of foreign currency denominated bonds and borrowings. When the exchange rate of the functional currency for each foreign currency fluctuates by 10% as of June 30, 2026, the impact of the change in the exchange rate on profit before income tax expenses are as follows: (In millions of Korean won) If increased by 10% If decreased by 10% USD W 4,368,354 W (4,368,354 ) JPY (108,174 ) 108,174 CNY 24,392 (24,392 ) EUR (60,430 ) 60,430 16 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (1) Financial risk management, Continued (a) Market risk, Continued (ii) Interest rate risk Interest rate risk of the Company is defined as the risk that the interest expenses arising from borrowings will fluctuate due to changes in future market interest rate. The interest rate risk mainly arises through floating rate borrowings and is partially offset by interests received from floating rate financial assets. The Company is managing cash flow interest rate risk using floating-to-fixed cross currency interest rate swaps. These interest rate swaps have an economic effect of converting floating interest borrowings into fixed interest borrowings. Generally, the Company borrows at a floating interest rate and then swaps at a fixed rate. Under the swap agreement, the Company will settle the difference between fixed interest costs and the floating interest costs calculated according to the principal agreed upon for each counterparty and specific period (mainly quarterly). The Company is partially exposed to the risk of changing net interest costs due to changes in interest rates as of June 30, 2026. The Company has signed a currency interest rate swap contract on floating interest rate borrowings in foreign currency amount to W96,344 million and an interest rate swap contract on floating interest rate borrowings in local currency of W286,000 million. Therefore, the changes in interest costs subject to fluctuation of interest rates do not have an impact on the profit before income tax for the six-month period ended June 30, 2026. As of June 30, 2026, if interest rates on borrowings and financial assets had been 100 basis points higher/lower with all other variables held constant, profit before income tax would have been W20,893 million (2025: W 24,836 million) lower/higher over the next year, mainly as a result of higher/lower net interest costs on floating-rate borrowings and interest income on floating-rate financial assets. (iii) Price risk The Company invests in equity and debt securities resulted from its business needs and the purpose of liquidity management. The Company s equity and debt securities are exposed to price risk as of June 30, 2026. (b) Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises mainly from operating and investing activities. In order to manage credit risk, the Company periodically evaluates the creditworthiness of each customer or counterparty through the analysis of its financial information, historical transaction records and other factors, based on which the Company establishes credit limits for each customer or counterparty. (i) Trade and other receivables For each new customer, the Company individually analyzes its credit worthiness before standard payment and delivery terms and conditions are offered. In addition, the Company is continuously managing trade and other receivables by reevaluating the customer s credit worthiness and securing collaterals in order to limit its credit risk exposure. The Company reviews at the end of each reporting period whether trade and other receivables are impaired and enters into credit insurance contracts to manage credit risk exposure from oversea customers. The extent of the Company s exposure to credit risk as of June 30, 2026 is equal to the carrying amount of trade and other receivables. 17 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (1) Financial risk management, Continued (b) Credit risk, Continued (ii) Other financial assets Credit risk also arises from other financial assets such as cash and cash equivalents, short-term financial instruments, short-term investment assets, and short-term and long-term loans mainly due to the bankruptcy of each counterparty to those financial assets. The maximum exposure to credit risk as of June 30, 2026 is the carrying amount of those financial assets. The Company deposits cash and cash equivalents, short-term financial instruments and others in several financial institutions, and transacts only with banks and financial institutions with high credit ratings. Accordingly, management does not expect any significant loss from non-performance by the counterparties. (c) Liquidity risk Liquidity risk is defined as the risk that the Company is unable to meet its short-term payment obligations on time due to deterioration of its business performance or inability to access financing. The Company forecasts its cash flow and liquidity status and sets action plans on a regular basis to manage liquidity risk proactively. The Company invests surplus cash in interest-bearing current accounts, time deposits and demand deposits choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. (2) Capital management The Company s objectives when managing capital are to safeguard the Company s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends to shareholders, procure and repay borrowings, issue new shares, and sell assets. The debt-to-equity ratio and net borrowing ratio as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Total liabilities (A) W 80,343,593 W 51,585,367 Total equity (B) 252,073,179 117,318,562 Cash and cash equivalents and others1 (C) 35,137,315 18,032,189 Total borrowings (D) 15,744,684 20,160,455 Debt-to-equity ratio (A/B) 31.87 % 43.97 % Net borrowing ratio2 (D-C)/B 1.81 % 1 Total amount of cash and cash equivalents, short-term financial instruments, and short-term investment assets. 2 Net borrowing ratio is not disclosed because the ratio is negative as of June 30, 2026. 18 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (2) Capital management, Continued Under major borrowing contracts, the Company is obliged to comply with a certain level of debt ratio and Loan- To-Value ratio. The Company has complied with all of these conditions as of June 30, 2026. (3) Fair value Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that an 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 (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) 19 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (3) Fair value, Continued (a) The following table presents the Company s carrying amounts and fair values of financial instruments by categories, including their levels in the fair value hierarchy, as of June 30, 2026 and December 31, 2025: (In millions of Korean won) June 30, 2026 Carrying amounts Level 1 Level 2 Level 3 Total Financial assets measured at fair value Short-term financial instruments W 222,500 W W W 222,500 W 222,500 Short-term investment assets 8,249,648 8,249,648 8,249,648 Trade receivables1 29,962 29,962 29,962 Long-term investment assets 69,709,791 69,577,210 132,581 69,709,791 Other financial assets 22,855 22,855 22,855 78,234,756 77,879,675 355,081 78,234,756 Financial assets not measured at fair value Cash and cash equivalents2 4,537,067 Short-term financial instruments2 22,128,100 Trade receivables2 46,919,910 Long-term financial instruments 2 7,100,011 Loans and other receivables2 6,516,339 87,201,427 Total financial asset W 165,436,183 W W 77,879,675 W 355,081 W 78,234,756 Financial liabilities measured at fair value Other financial liabilities W 322 W W 322 W W 322 Financial liabilities not measured at fair value Trade payables2 3,662,601 Other payables2 6,143,416 Other non-trade payables2 1,918,113 Borrowings 15,744,684 15,721,750 15,721,750 Lease liabilities2 2,017,697 29,486,511 15,721,750 15,721,750 Total financial liabilities W 29,486,833 W W 15,722,072 W W 15,722,072 1 The Company transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements as all the risks and rewards are substantially transferred. Accordingly, the Company recognized gain or loss on disposal of trade receivables. 2 The Company has not disclosed the fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. 20 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (3) Fair value, Continued (a) The following table presents the Company s carrying amounts and fair values of financial instruments by categories, including their levels in the fair value hierarchy, as of June 30, 2026 and December 31, 2025: Continued: (In millions of Korean won) December 31, 2025 Carrying amounts Level 1 Level 2 Level 3 Total Financial assets measured at fair value Short-term financial instruments W 222,500 W W W 222,500 W 222,500 Short-term investment assets 1,555,767 1,555,767 1,555,767 Trade receivables1 5,200 5,200 5,200 Long-term investment assets 14,285,809 14,285,809 14,285,809 Other financial assets 195,196 195,196 195,196 16,264,472 1,756,163 14,508,309 16,264,472 Financial assets not measured at fair value Cash and cash equivalents2 2,403,922 Short-term financial instruments2 13,850,000 Trade receivables2 16,349,097 Loans and other receivables2 7,169,955 Other financial assets2 1,100,011 40,872,985 Total financial asset W 57,137,457 W W 1,756,163 W 14,508,309 W 16,264,472 Financial liabilities measured at fair value Other financial liabilities W 4,914,503 W W 4,914,503 W W 4,914,503 Financial liabilities not measured at fair value Trade payables2 3,317,619 Other payables2 6,668,609 Other non-trade payables2 1,019,139 Borrowings 20,160,455 20,366,009 20,366,009 Lease liabilities2 2,045,100 33,210,922 20,366,009 20,366,009 Total financial liabilities W 38,125,425 W W 25,280,512 W W 25,280,512 1 The Company transferred certain portion of trade receivables, which are from specific customers, and derecognized the trade receivables from the financial statements as all the risks and rewards are substantially transferred. Accordingly, the Company recognized gain or loss on disposal of trade receivables. 2 The Company did not present fair values of financial assets and liabilities of which carrying amounts are considered to be a reasonable approximation of fair values. 21 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 5. Financial Risk Management, Continued (3) Fair value, Continued (b) Valuation Techniques The valuation techniques used to measure financial instruments with fair value level 2 and level 3 are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2025. (c) During the six-month period ended June 30, 2026, certain long-term investment assets were transferred from Level 3 to Level 2 as a result of changes in the valuation methodology. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period in which the event or change in circumstances that caused the transfer occurred. The changes in financial assets classified as level 3 fair value measurements for the six-month period ended June 30, 2026 are as follows: (In millions of Korean won) Beginning Balance Acquisition Disposals Gain on Valuation Foreign Exchange Difference Transfer Ending Balance Financial assets: Short-term financial instruments W 222,500 W 222,500 Long-term investment assets W 14,285,809 4,257 (10,633,317 ) 62,263,614 289,428 (66,077,210 ) W 132,581 22 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 6. Trade Receivables and Loans and Other Receivables (1) Details of loans and other receivables as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Other receivables W 43,574 W 68,080 Accrued income 319,020 194,430 Short-term loans 623,030 7,059 Short-term guarantee and other deposits 28,491 17,198 1,014,115 286,767 Non-current Long-term other receivables 559 1,085 Long-term loans 5,366,712 6,738,780 Guarantee deposits 134,953 143,323 5,502,224 6,883,188 W 6,516,339 W 7,169,955 (2) Trade receivables and loans and other receivables, net of provision for impairment, as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Gross amount Provision for impairment Carrying amount Trade receivables W 46,949,872 W W 46,949,872 Current loans and other receivables 1,014,191 (76 ) 1,014,115 Non-current loans and other receivables 5,502,242 (18 ) 5,502,224 W 53,466,305 W (94 ) W 53,466,211 (In millions of Korean won) December 31, 2025 Gross amount Provision for impairment Carrying amount Trade receivables W 16,354,297 W W 16,354,297 Current loans and other receivables 286,843 (76 ) 286,767 Non-current loans and other receivables 6,883,206 (18 ) 6,883,188 W 23,524,346 W (94 ) W 23,524,252 23 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 7. Inventories Details of inventories as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Acquisition cost Inventory valuation allowance Carrying amount Merchandise W 2,725 W (2,618 ) W 107 Finished goods 2,587,483 (130,853 ) 2,456,630 Work-in-process 8,848,966 (23,759 ) 8,825,207 Raw materials 1,245,017 (22,205 ) 1,222,812 Supplies 444,034 (35,755 ) 408,279 Goods in transit 189,494 189,494 W 13,317,719 W (215,190 ) W 13,102,529 (In millions of Korean won) December 31, 2025 Acquisition cost Inventory valuation allowance Carrying amount Merchandise W 199 W (161 ) W 38 Finished goods 2,315,463 (197,337 ) 2,118,126 Work-in-process 6,902,538 (60,973 ) 6,841,565 Raw materials 880,996 (10,562 ) 870,434 Supplies 372,494 (30,900 ) 341,594 Goods in transit 224,546 224,546 W 10,696,236 W (299,933 ) W 10,396,303 24 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 8. Other Current and Non-current Assets Details of other current and non-current assets as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Advance payments W 46,556 W 36,469 Prepaid expenses 298,366 166,454 Value added tax refundable 937,010 670,114 Contract assets 72,158 143,655 Others 9,837 10,895 1,363,927 1,027,587 Non-current Long-term advance payments 113,259 79,280 Long-term prepaid expenses 2,452 4,431 115,711 83,711 W 1,479,638 W 1,111,298 25 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 9. Investments in Subsidiaries, Associates and Joint Ventures (1) Investments in subsidiaries, associates and joint ventures as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Subsidiaries W 66,985,201 W 22,764,705 Associates and joint ventures 793,876 790,944 W 67,779,077 W 23,555,649 (2) Details of investments in subsidiaries as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Location Ownership (%) Book value Ownership (%) Book value SK hyeng Inc. Korea 100.00 W 7,521 100.00 W 7,521 SK hystec Inc. Korea 100.00 6,760 100.00 6,760 Happymore Inc. Korea 100.00 37,400 100.00 37,400 SK hynix system ic Inc. Korea 100.00 404,928 100.00 404,928 HappyNarae Co., Ltd. Korea 100.00 63,147 100.00 63,147 SK Keyfoundry Inc. Korea 100.00 572,590 100.00 572,590 SK hynix America Inc. U.S.A. 100.00 52,833 100.00 52,833 SK hynix Deutschland GmbH Germany 100.00 22,011 100.00 22,011 SK hynix Asia Pte. Ltd. Singapore 100.00 52,380 100.00 52,380 SK hynix Semiconductor Hong Kong Ltd. Hong Kong 100.00 32,623 100.00 32,623 SK hynix U.K. Ltd. U.K. 100.00 1,775 100.00 1,775 SK hynix Semiconductor Taiwan Inc. Taiwan 100.00 37,562 100.00 37,562 SK hynix Japan Inc. Japan 100.00 42,905 100.00 42,905 SK hynix Semiconductor India Private Ltd. India 1.00 5 1.00 5 SK hynix (Wuxi) Semiconductor Sales Ltd. China 100.00 237 100.00 237 SK hynix Semiconductor (China) Ltd. China 100.00 5,679,587 100.00 5,679,587 SK hynix memory solutions Taiwan Ltd. Taiwan 100.00 7,819 100.00 7,819 SK APTECH Ltd. Hong Kong 100.00 440,770 100.00 440,770 SK hynix Ventures Hong Kong Ltd. Hong Kong 100.00 10,941 100.00 10,941 Gauss Labs Inc. 1 U.S.A. 95.98 25,298 97.38 25,298 SK hynix NAND Product Solutions Corp. 2 U.S.A. 98.16 2,189,079 97.48 2,189,079 SK hynix Semiconductor (Dalian) Co., Ltd. China 100.00 1,775,889 100.00 1,775,889 SK hynix memory solutions Poland sp. z o.o. 3 Poland 100.00 19,051 100.00 3,945 MMT (Money Market Trust) 4 Korea 100.00 55,502,090 100.00 11,296,700 W 66,985,201 W 22,764,705 1 The Company s ownership interest decreased due to exercise of stock options by the employees of subsidiary during the six-month period ended June 30, 2026. 2 The Company s ownership interest increased and decreased due to the purchase of employee-owned shares by subsidiaries and third-party paid-in capital increases during the six-month period ended June 30, 2026. 3 The Company additionally acquired W15,106 million during six-month period ended June 30, 2026. 4 The Company disposed of certain MMT and acquired new MMT during the six-month period ended June 30, 2026. 26 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 9. Investments in Subsidiaries, Associates and Joint Ventures, Continued (3) Details of investments in associates and joint ventures as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Investee Location Ownership (%) Carrying amount Ownership (%) Carrying amount Associate: Stratio, Inc. 1 U.S.A 9.26 W 394 9.26 W 394 SK China Company Limited 2 China 11.87 257,169 11.87 257,169 SK South East Asia Investment Pte. Ltd. Singapore 20.00 345,800 20.00 345,800 Prume Social Farm, Co., Ltd. Korea 35.52 2,000 35.52 2,000 L&S (No.10) Early Stage III Investment Association 4 Korea 24.39 4,350 24.39 5,000 SiFive, Inc. 1 U.S.A 6.84 18,311 6.84 18,311 Mirae Asset Committee Semiconductor No. 1 Startup Venture Private Equity Investment Co., Ltd. 5 Korea 29.97 17,590 29.97 17,438 SK Japan Inc. Japan 25.27 3,003 25.27 3,003 SK Americas, Inc. U.S.A. 20.00 13,340 20.00 13,340 Joint venture: HITECH Semiconductor (Wuxi) Co., Ltd. 3 China 45.00 92,608 45.00 92,608 Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 3,6 Korea 33.33 3,761 33.33 5,331 Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor 3 Korea 37.50 19,800 37.50 19,800 Semiconductor Ecosystem Fund 3,7 Korea 33.33 15,750 33.33 10,750 W 793,876 W 790,944 1 The Company is able to exercise significant influence through its right to appoint a director to the Board of Directors of investee. Accordingly, the investment has been classified as an associate. 2 Management of the Company is able to exercise significant influence over the entity by participating Board of Directors. Accordingly, the investment has been classified as an associate. 3 It has been classified to a joint venture as it is stated in the agreement that unanimous vote is required for relevant activities. 4 W650 million in principal was recovered during the six-month period ended June 30, 2026. 5 The Company additionally acquired W2,100 million and W1,948 million in principal was recovered during the six-month period ended June 30, 2026. 6 W1,570 million in principal was recovered during the six-month period ended June 30, 2026. 7 The Company additionally acquired W5,000 million during the six-month period ended June 30, 2026. 27 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 10. Property, Plant and Equipment (1) Changes in property, plant and equipment for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 67,394,741 W 48,316,766 Acquisition 16,438,776 10,531,625 Disposal and retirement (12,684 ) (31,179 ) Depreciation (5,959,727 ) (4,544,143 ) Transfers 6,723 7,457 Ending balance W 77,867,829 W 54,280,526 (2) Certain machineries are pledged as collaterals for borrowings of the Company as of June 30, 2026 (See note 28). 11. Leases (1) Changes in right-of-use assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 1,754,246 W 1,868,604 Acquisition 168,708 89,981 Termination (6,441 ) (1,374 ) Depreciation (160,721 ) (178,756 ) Ending balance W 1,755,792 W 1,778,455 (2) Changes in lease liabilities for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 2,045,100 W 2,275,463 Acquisition 168,708 89,981 Termination (6,556 ) (1,353 ) Interest expenses 41,145 41,776 Payments (267,437 ) (283,093 ) Foreign exchange difference 36,737 (53,378 ) Ending balance W 2,017,697 W 2,069,396 28 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 12. Intangible Assets Changes in intangible assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 3,232,687 W 3,172,837 Acquisition 588,815 380,594 Disposal and retirement (1,947 ) (2,778 ) Amortization (328,440 ) (354,575 ) Transfers (6,723 ) (7,457 ) Ending balance W 3,484,392 W 3,188,621 29 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 13. Borrowings Details of borrowings as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Short-term borrowings W 300,000 W 650,000 Current portion of long-term borrowings 1,809,376 1,378,589 Current portion of debentures1 1,249,165 4,295,659 3,358,541 6,324,248 Non-current Long-term borrowings 1,842,207 2,629,809 Debentures 10,543,936 11,206,398 12,386,143 13,836,207 W 15,744,684 W 20,160,455 1 The Company held exchangeable bonds issued in 2023, and the maturity date of the exchangeable bonds is in 2030. As of December 31, 2025, the Company classified the exchangeable bonds as current borrowings due to the possibility of exercising conversion rights by the bondholders. During the six-month period ended June 30, 2026, exchangeable bonds equivalent to USD 738,400,000 were exchanged for 8,932,474 shares upon exercise of exchange rights by the bondholders. As the exchangeable bonds were fully exchanged into shares during the six-month period ended June 30, 2026, no balance remains as of June 30, 2026. On a cumulative basis, exchangeable bonds equivalent to USD 1,700,000,000 have been exchanged for 20,560,302 shares. The conditions of issuance are as follows: Type of bond Foreign exchangeable bond Issue amount USD 1,700,000,000 Outstanding balance of bonds issued1 USD 0 Interest rate Coupon Rate 1.75% Yield Rate 1.75% Maturity Date April 11, 2030 Redemption measures 1) Redemption upon maturity: redemption of the remaining amounts for which conversion rights or early redemption has not been exercised upon maturity date 2) Early redemption: Redemption by the Call Option of the Issuer or redemption by the Put Option of Bondholders Details of conversion right Conversion Rate 100.00% of the principal amount Conversion price W108,811 per share Subject of Conversion Ordinary shares of the SK hynix Inc. (currently held as treasury shares) Conversion period May 22, 2023 - April 1, 2030 Adjustment to Conversion Price Adjustment of the Conversion Price in certain circumstances, including but not limited to: Bonus issue, subdivision, consolidation, reclassification, rights issues of options or warrants over shares, share dividends, capital distribution, modification of rights of conversion, issues at less than Current Market Price, etc. 30 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 13. Borrowings, Continued Details of borrowings as of June 30, 2026 and December 31, 2025 are as follows, Continued Put Option of Bondholders The fourth anniversary from the transaction date (April 11, 2027) In the case of a change of control of the Company In the case of the Shares of the Company ceases to be listed or admitted to trading or are suspended for trading for a period equal to or exceeding 20 consecutive Trading Days Call Option of the Issuer On or after April 25, 2028, in the case of the closing price of the Shares for any 20 trading days in a period of 30 consecutive trading days is at least 130% of the prevailing Conversion Price In the case of the aggregate principal amount of the Bonds outstanding is less than 10% of the aggregate principal amount originally issued (Clean Up Call) In the case of the Issuer becomes obliged to pay any additional amounts, as a result of changes relating to tax laws in Korea. 1 Upon issuance, the exchangeable bonds were exchangeable into 20,126,911 shares. The number of shares subject to exchange was subsequently adjusted due to the exercise of exchange rights and adjustments in the exchange price. As the exchange rights were fully exercised, there were no exchangeable shares outstanding as of June 30, 2026 14. Other Current and Non-current Liabilities Details of other current and non-current liabilities as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Current Advance receipts W 355 W 405 Unearned income 33 44 Withholdings 164,999 229,431 Contract liabilities 379,765 417,711 Others 61,536 545,152 709,127 Non-current Other long-term employee benefits 2,789,369 1,249,741 W 3,334,521 W 1,958,868 31 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 15. Provisions (1) Changes in provisions for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 Beginning Balance Increase Utilization Reversal Ending Balance Purchase commitments W 153,267 W 14,177 W W W 167,444 Warranty 217,244 (584 ) (47,132 ) 169,528 Emission allowances 4,359 1,327 5,686 Restoration 1,827 1,827 W 376,697 W 15,504 W (584 ) W (47,132 ) W 344,485 (In millions of Korean won) 2025 Beginning Balance Increase Utilization Reversal Ending Balance Purchase commitments W 82,621 W W W (9,093 ) W 73,528 Warranty 256,479 30,796 (1,021 ) 286,254 Emission allowances 5,407 (3,167 ) 2,240 Restoration 1,827 1,827 W 346,334 W 30,796 W (1,021 ) W (12,260 ) W 363,849 (2) Accrual for loss on purchase commitment The Company is committed to purchase wafers (semi-finished goods) from its overseas subsidiary, SK hynix Semiconductor (China) Ltd. For the work-in-process which will be purchased from the subsidiary, the Company records provisions for expected losses if the total manufacturing costs are expected to exceed the sale price of finished goods at the end of reporting period. Increase or reversal in the provision for purchase commitments are recognized in the cost of sales. (3) Provisions for warranty The Company estimates the expected warranty costs based on historical results and records provisions for warranty. Regarding the durability issue of certain products sold in the prior years, the Company separately estimated and recorded warranty provisions for the amount expected to be paid for cash compensation, product replacement and other customer supporting activities. 32 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 15. Provisions, Continued (4) Provision for emission allowances The Company recognizes estimated future payment for the number of emission certificates required to settle the Company s obligation exceeding the actual number of certificates on hand as emission allowances according to the Act on Allocation and Trading of Greenhouse Gas Emission Permits. (a) Details of the allocated amount of emission permits and the estimated amount of emission as of June 30, 2026 are as follows: (In ten thousand tons CO2-eq) June 30, 2026 Allocated emission permits 636 Estimated volume of emission 686 (b) Changes in the emission permits rights for the six-month period ended June 30, 2026 are as follows: (In ten thousand tons CO2-eq) 2025 Beginning balance 51 Allocated 502 Disposal (18 ) Ending balance 535 33 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 16. Defined Benefit Liabilities (Assets) (1) Details of defined benefit liabilities (assets) as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Present value of defined benefit obligations W 3,194,112 W 3,159,480 Fair value of plan assets (4,700,663 ) (4,686,832 ) Net defined benefit liabilities (assets) W (1,506,551 ) W (1,527,352 ) Defined benefit liabilities W W Employee benefit assets1 W 1,506,551 W 1,527,352 1 The Company s fair value of plan assets in excess of the present value of defined benefit obligations, presented as employee benefit assets, amounted to W1,506,551 million and W1,527,352 million as of June 30, 2026 and December 31, 2025, respectively. (2) Changes in present value of defined benefit obligations for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 3,159,480 W 2,842,010 Current service cost 139,653 132,967 Interest expense 82,741 70,258 Transfer from associates 5,565 2,875 Benefits paid (193,327 ) (121,578 ) Ending balance W 3,194,112 W 2,926,532 (3) Changes in fair value of plan assets for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Beginning balance W 4,686,832 W 3,971,186 Contributions 165,000 260,000 Interest income 125,413 99,135 Transfer from associates 4,746 3,155 Benefits paid (207,103 ) (139,877 ) Remeasurements (74,225 ) (4,492 ) Ending balance W 4,700,663 W 4,189,107 34 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 16. Defined Benefit Liabilities (Assets), Continued (4) The amounts recognized in profit or loss for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Current service cost W 69,813 W 139,653 W 66,470 W 132,967 Net interest income (21,344 ) (42,672 ) (14,443 ) (28,877 ) W 48,469 W 96,981 W 52,027 W 104,090 (5) Contributions to defined contribution plans amounting to W14,904 million (2025: W8,999 million) were recognized as cost for the six-month periods ended June 30, 2026. 35 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 17. Derivative Financial Instruments (1) Currency and interest rate swap (a) Details of derivative financial instruments applying cash flow hedge accounting as of June 30, 2026 are as follows: (In millions of Korean won and thousands of foreign currencies) Hedged items Hedging instruments Borrowing date Financial instrument Hedged risk Type of contract Financial institution Contract period 2019.10.02 Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 62,500) Foreign currency risk and interest rate risk Floating-to-fixed cross currency interest rate swap Korea Development Bank 2019.10.02 ~ 2026.10.02 2023.04.04 Borrowing for equipment with floating rate (Par value: KRW 100,000) Interest rate risk Interest rate swap Woori Bank 2023.04.04 ~ 2028.04.04 2024.03.07 Borrowing for equipment with floating rate (Par value: KRW 186,000) Interest rate risk Interest rate swap Shinhan Bank 2024.03.07 ~ 2027.10.18 (b) The fair value of derivative financial assets and derivative financial liabilities held by the Company are presented in other financial assets and other financial liabilities in the separate financial statements of financial position as of June 30, 2026 and the details are as follows: (In millions of Korean won and thousands of foreign currencies) Type of contract Hedged items Cash flow hedge Fair value Floating-to-fixed cross currency swap Foreign currency denominated borrowing for equipment with floating rate (Par value: USD 62,500) W 22,523 W 22,523 Interest rate swap Borrowing for equipment with floating rate (Par value: KRW 100,000) 272 272 Interest rate swap Borrowing for equipment with floating rate (Par value: KRW 186,000) 60 60 Derivative financial assets W 22,855 Interest rate swap Borrowing for equipment for with floating rate (Par value: KRW 186,000) W 322 W 322 Derivative financial liabilities W 322 As of June 30, 2026, changes of fair value of the derivative are recognized in other comprehensive income or loss as all of designated hedging instruments are all effective against risks. 36 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 17. Derivative Financial Instruments, Continued (2) Embedded Derivatives The details of the embedded derivatives held by the Company presented in other financial liabilities in the separate financial statements of financial position as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) Derivative financial liabilities June 30, 2026 December 31, 2025 Embedded Derivatives1 W W 4,911,677 1 Embedded derivatives are conversion right, call option, and put options granted on exchangeable bonds issued by the Company on April 11, 2023 (See note 13). As the exchangeable bonds were fully exchanged into shares during the six-month period ended June 30, 2026, no balance of embedded derivatives remains as of June 30, 2026. 37 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 18. Capital Stock, Capital Surplus, Other Equity and Accumulated Other Comprehensive Income (1) The Company has 9,000,000,000 authorized shares and the face value per share is W5,000 as of June 30, 2026. The number of shares issued, common stock, capital surplus and other equity as of June 30, 2026 and December 31, 2025, are as follows: (In millions of Korean won and shares) June 30, 2026 December 31, 2025 Issued shares1 712,702,365 728,002,365 Capital stock: Common stock W 3,657,652 W 3,657,652 Capital surplus: Additional paid in capital2 21,406 3,625,797 Others2,3 11,668,636 5,152,867 11,690,042 8,778,664 Other equity: Acquisition cost of treasury shares3,4 (92,746 ) (1,499,954 ) Share options 39,913 64,018 Others (189,787 ) 87,338 W (242,620 ) W (1,348,598 ) Accumulated other comprehensive income: Gain on valuation of derivatives W (302 ) W 8,279 Number of treasury shares: Number of treasury shares3,4 1,626,865 26,310,845 1 The number of issued shares decreased due to share retirement for the six-month period ended June 30, 2026 and from the past. 2 For the six-month period ended June 30, 2026, the company resolved at the regular general meeting of shareholders held on March 25, 2026, to increase distributable retained earnings by transferring capital surplus to retained earnings. As a result, share premium of W3,604,391 million and capital reduction surplus of W479,244 million were transferred to retained earnings. 3 The Company disposed 9,383,980 treasury shares, and recognized gains on disposal of treasury shares of W6,995,013 million. 4 The company retired 15,300,000 treasury shares during the six-month period ended June 30, 2026. (2) The number of outstanding shares, which represents the Parent Company s issued shares outstanding less treasury shares, as of June 30, 2026 and December 31, 2025, are as follows: (In shares) June 30, 2026 Listed Shares Treasury Shares Outstanding Shares The number of issued shares 712,702,365 1,626,865 711,075,500 (In shares) December 31, 2025 Listed Shares Treasury Shares Outstanding Shares The number of issued shares 728,002,365 26,310,845 701,691,520 38 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 19. Retained Earnings Retained earnings as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 December 31, 2025 Legal reserve1 W 1,063,843 W 852,976 Discretionary reserve2 235,507 235,507 Unappropriated retained earnings3, 4 235,669,057 105,134,082 W 236,968,407 W 106,222,565 1 The Commercial Code of the Republic of Korea requires the Company to appropriate for each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued capital stock. The reserve is not available for cash dividends payment but may be transferred to capital stock or used to reduce accumulated deficit. 2 Discretionary reserve is the reserve for technology development. 3 For the six-month period ended June 30, 2026, the company resolved at the regular general meeting of shareholders held on March 25, 2026, to increase distributable retained earnings by transferring capital surplus to retained earnings. As a result, share premium of W3,604,391 million and capital reduction surplus of W479,244 million were transferred to retained earnings. 4 Dividends amounting to W1,327,712 million, which were approved at shareholders meeting held on March 25, 2026, and W266,653 million, which were approved at board of directors meeting held on April 22, 2026 were distributed as of June 30, 2026. 39 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 20. Revenue (1) Details of revenue for the three-month and six-month periods ended June 30, 2026 and 2025, are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Sale of goods and other products W 73,939,895 W 121,959,359 W 19,513,752 W 35,421,500 Providing services 85,827 124,951 35,714 73,260 W 74,025,722 W 122,084,310 W 19,549,466 W 35,494,760 (2) Details of revenue by product and service types for the three-month and six-month periods ended June 30, 2026 and 2025, are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months DRAM W 59,155,599 W 98,913,878 W 16,573,043 W 30,180,136 NAND Flash 14,719,034 22,903,501 2,877,175 5,107,758 Others 151,089 266,931 99,248 206,866 W 74,025,722 W 122,084,310 W 19,549,466 W 35,494,760 (3) Details of the Company s revenue by the timing of revenue recognition for the three-month and six-month periods ended June 30, 2026 and 2025, are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Performance obligations satisfied at a point in time W 73,939,895 W 121,959,359 W 19,513,752 W 35,421,500 Performance obligations satisfied over time 85,827 124,951 35,714 73,260 W 74,025,722 W 122,084,310 W 19,549,466 W 35,494,760 40 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 21. Selling and Administrative Expenses Selling and administrative expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Selling and Administrative Expenses: Salaries W 965,451 W 1,586,369 W 263,441 W 537,057 Defined benefit plan 12,224 23,391 12,195 23,014 Employee benefits 47,807 106,185 38,416 76,892 Commission 155,882 261,042 153,786 248,848 Depreciation 47,467 92,171 47,182 95,101 Amortization 106,852 214,668 111,407 237,237 Advertising 37,612 57,485 26,906 40,425 Supplies 32,850 68,845 25,813 44,588 Quality control cost (2,483 ) (47,132 ) 57,769 52,751 Training 18,128 45,755 17,744 43,648 Others 84,391 145,416 42,480 85,298 1,506,181 2,554,195 797,139 1,484,859 Research and development: Expenditure on research and development 3,179,261 5,476,340 1,346,042 2,742,637 Development cost capitalized (127,572 ) (226,587 ) (54,936 ) (98,285 ) 3,051,689 5,249,753 1,291,106 2,644,352 W 4,557,870 W 7,803,948 W 2,088,245 W 4,129,211 41 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 22. Expenses by Nature Nature of expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Changes in finished goods, work-in-process, and others W (1,408,391 ) W (2,322,216 ) W 626,621 W (252,432 ) Raw materials, supplies and consumables 4,353,098 8,077,343 3,246,326 6,367,020 Employee benefit 7,365,986 12,030,975 2,115,219 4,214,450 Depreciation and amortization 3,326,965 6,378,371 2,578,164 5,002,424 Commission 1,024,840 1,969,309 776,930 1,544,880 Utilities 645,193 1,237,544 509,845 1,072,016 Repair 431,369 804,728 354,342 660,578 Outsourcing 742,119 1,429,038 545,437 1,044,375 Others 473,763 930,894 430,315 780,323 Transfer: capitalized development cost and others (207,435 ) (355,202 ) (82,810 ) (151,254 ) Total1 W 16,747,507 W 30,180,784 W 11,100,389 W 20,282,380 1 Total expenses consist of cost of sales and selling and administrative expenses. 23. Finance Income and Expenses Finance income and expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Finance income: Interest income W 294,450 W 508,161 W 154,737 W 334,761 Dividend income 10,951,200 14,903,668 364,932 372,040 Foreign exchange differences1 1,897,694 4,518,860 1,267,112 1,865,005 Gain on valuation of financial instruments 52,441,071 62,324,633 238,938 2,002,393 Others 127 3,140 (2,465 ) 6,276 65,584,542 82,258,462 2,023,254 4,580,475 Finance expenses: Interest expenses 122,478 260,760 191,481 422,999 Foreign exchange differences1 817,229 2,027,993 1,777,177 2,234,684 Loss on valuation of derivative financial instruments 2,478,994 3,977,121 Others 855 881 3,418,701 6,265,874 1,969,513 2,658,564 Net finance income W 62,165,841 W 75,992,588 W 53,741 W 1,921,911 1 The foreign exchange differences gain from long-term investment assets amounting to W495,911 million (2025: The foreign exchange differences loss W67,465 million) are included for the six-month period ended June 30, 2026. 42 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 24. Other Income and Expenses (1) Other income for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Gain on disposal of property, plant and equipment W 8,303 W 18,889 W 9,222 W 84,557 Gain on disposal of intangible assets 1,037 1,037 Gain on disposal of investment in subsidiaries and associates 91,131 165,498 37,472 84,006 Others 1,579 3,820 3,570 5,423 W101,013 W188,207 W51,301 W175,023 (2) Other expenses for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Three months Six months Three months Six months Donation W 29,974 W 31,724 W 42,700 W 44,276 Loss on disposal of property, plant and equipment 1,414 8,260 19,404 19,803 Loss on disposal of intangible assets 877 1,867 1,277 1,690 Depreciation of idle property, plant and equipment 1,140 2,361 3,720 7,991 Others 5,953 5,972 23 399 W39,358 W50,184 W67,124 W74,159 25. Income Tax Expense Income tax expense is recognized based on management s best estimate of the average annual effective income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period. Income tax expense includes current tax expense adjustments related to prior period. 43 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 26. Earnings per Share Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average number of outstanding ordinary shares during the three-month and six-month periods ended June 30, 2026 and 2025. (1) Basic earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won, except for shares and per share information) 2026 2025 Three months Six months Three months Six months Profit attributable to ordinary shareholders W 91,302,934 W 129,203,034 W 6,837,594 W 14,463,417 Weighted average number of outstanding ordinary shares1 710,083,326 707,746,374 690,395,022 690,019,799 Basic earnings per share (in Korean won) W 128,581 W 182,556 W 9,904 W 20,961 1 Weighted average number of outstanding ordinary shares is calculated as follows: (In shares) 2026 2025 Three months Six months Three months Six months Issued ordinary shares 712,702,365 715,999,050 728,002,365 728,002,365 Acquisition of treasury shares (2,619,039 ) (8,252,676 ) (37,607,343 ) (37,982,566 ) Weighted average number of outstanding ordinary shares 710,083,326 707,746,374 690,395,022 690,019,799 44 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 26. Earnings per Share, Continued (2) Diluted earnings per share for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won, except for shares and per share amounts) 2026 2025 Three months Six months Three months Six Months Profit attributable to ordinary shareholders of the Company W 91,302,934 W 129,203,034 W 6,837,594 W 14,463,417 Adjustment: Interest expense (After-tax) 350 5,144 22,975 46,089 Gain on foreign currency translation (After-tax) (70,859 ) (204,350 ) (217,996 ) Diluted profit attributable to ordinary shareholders of the Company 91,232,425 129,208,178 6,656,219 14,291,510 Weighted average number of diluted outstanding ordinary shares1 711,647,617 711,615,569 711,467,642 711,094,878 Diluted earnings per share (in Korean won) W 128,199 W 181,570 W 9,356 W 20,098 1 Weighted average number of diluted outstanding ordinary shares is calculated as follows: (In shares) 2026 2025 Three months Six months Three months Six months Weighted average number of outstanding ordinary shares 710,083,326 707,746,374 690,395,022 690,019,799 Share options 579,543 638,376 933,331 935,790 Exchangeable bond 984,748 3,230,819 20,139,289 20,139,289 Weighted average number of diluted outstanding ordinary shares 711,647,617 711,615,569 711,467,642 711,094,878 45 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others (1) Details of related parties as of June 30, 2026 are as follows: Type Name of related parties Subsidiaries SK hynix America Inc. and other 56 entities 1 Associates2 Stratio, Inc., SK China Company Limited, Gemini Partners Pte. Ltd., TCL Fund, SK South East Asia Investment Pte. Ltd., Hushan Xinju (Chengdu) Venture Investment Center(Smartsource), Prume Social Farm, Co., Ltd., Wuxi xinfa IC industry park., Ltd., Mirae Asset Committee Semiconductor No. 1 Startup Venture Private Equity Investment Co., Ltd., L&S (No.10) Early Stage III Investment Association, SiFive, Inc., YD-SK-KDB Social Value, Ningbo Zhongxin Venture Capital Partnership (Limited Partnership), Jiangsu KVTS Semiconductor science and Technology Co Ltd., SAPEON Inc., SK Japan Inc., SK Americas, Inc. Joint ventures3 HITECH Semiconductor(Wuxi) Co., Ltd., SK hynix system ic (Wuxi) Co., Ltd., and its subsidiaries, Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor, Specialized Investment-type Private Equity Investment Trust For Win-win System Semiconductor, Semiconductor Ecosystem Fund Other related Parties SK Square Co., Ltd., which has significant influence over the Company, and its subsidiaries, SK Holdings Co., Ltd., which has control over SK Square Co., Ltd., and its subsidiaries 1 MMT (Money Market Trust) was excluded from related party transactions. Subsidiaries of subsidiaries are included. 2 Associates of subsidiaries are included. 3 Joint ventures of subsidiaries are included. 46 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (2) Subsidiaries of the Company as of June 30, 2026 are as follows: Company Controlling company Remarks SK hyeng Inc. SK hynix Inc. Construction and service SK hystec Inc. SK hynix Inc. Business support and service HappyNarae Co., Ltd. SK hynix Inc. Industrial material supply Happymore Inc. SK hynix Inc. Semiconductor apparel manufacturing, baking and services SK hynix system ic Inc. SK hynix Inc. Semiconductor research and development and business support SK hynix America Inc. SK hynix Inc. Semiconductor sales SK hynix Deutschland GmbH SK hynix Inc. Semiconductor sales SK hynix Asia Pte. Ltd. SK hynix Inc. Semiconductor sales SK hynix Semiconductor Hong Kong Ltd. SK hynix Inc. Semiconductor sales SK hynix Japan Inc. SK hynix Inc. Semiconductor sales SK hynix U.K. Ltd. SK hynix Inc. Semiconductor sales SK hynix Semiconductor India Private Ltd. SK hynix Asia Pte. Ltd. Semiconductor sales SK hynix (Wuxi) Semiconductor Sales Ltd. SK hynix Inc. Semiconductor sales SK hynix Semiconductor Taiwan Inc. SK hynix Inc. Semiconductor sales SK hynix Semiconductor (China) Ltd. SK hynix Inc. Semiconductor manufacturing SK hynix Semiconductor (Chongqing) Ltd. SK APTECH Ltd. Semiconductor manufacturing SK APTECH Ltd. SK hynix Inc. Overseas investment SK hynix Ventures Hong Kong Ltd. SK hynix Inc. Overseas investment SK hynix memory solutions America Inc. SK hynix America Inc. Semiconductor research and development SK hynix memory solutions Taiwan Ltd. SK hynix Inc. Semiconductor research and development SK hynix (Wuxi) Investment Ltd. SK hynix Semiconductor (China) Ltd. Overseas investment SK hynix (Wuxi) Industry Development Ltd. SK hynix (Wuxi) Investment Ltd. Foreign hospital construction SK hynix Happiness (Wuxi) Hospital Management Ltd. SK hynix (Wuxi) Investment Ltd. Foreign hospital operation SK hynix cleaning (Wuxi) Ltd. SK hynix (Wuxi) Investment Ltd. Building maintenance and others SUZHOU HAPPYNARAE Co., Ltd. HappyNarae Co., Ltd. Overseas industrial material supply CHONGQING HAPPYNARAE Co., Ltd. SUZHOU HAPPYNARAE Co., Ltd. Overseas industrial material supply SK hynix (Wuxi) Education Technology Co., Ltd. SK hynix (Wuxi) Investment Ltd. Overseas education Gauss Labs Inc.1 SK hynix Inc. Overseas telecommunication of information HappyNarae America LLC 2 HappyNarae Co., Ltd. Overseas industrial material supply HappyNarae Hungary Kft 2 HappyNarae Co., Ltd. Overseas industrial material supply SK hynix (Wuxi) Education Service Development Co., Ltd. SK hynix (Wuxi) Education Technology Co., Ltd. Overseas education SK hynix NAND Product Solutions Corp. 1,4 SK hynix Inc. Semiconductor sales, research and development and others Solidigm Inc.3,4 SK hynix NAND Product Solutions Corp. Semiconductor sales, research and development and others 47 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (2) Subsidiaries of the Company as of June 30, 2026 are as follows, Continued Company Controlling company Remarks SK hynix NAND Product Solutions Taiwan Co., Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development and sales SK hynix NAND Product Solutions Canada Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development SK hynix NAND Product Solutions Mexico, S. DE R.L. DE C.V.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development SK hynix Semiconductor (Dalian) Co., Ltd. SK hynix Inc. Semiconductor manufacturing SK hynix NAND Product Solutions UK Limited1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor salepps SK hynix NAND Product Solutions Israel Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK hynix NAND Product Solutions International LLC1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK hynix NAND Product Solutions Asia Pacific LLC1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK hynix NAND Product Solutions Singapore Pte. Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK hynix NAND Product Solutions Malaysia Sdn. Bhd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK HYNIX NAND PRODUCT SOLUTIONS POLAND sp. z o.o.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development SK hynix NAND Product Solutions (Beijing) Co., Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor sales SK Hynix NAND Product Solutions (Shanghai) Co., Ltd.1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development SK Keyfoundry Inc. SK hynix Inc. Semiconductor sales, manufacturing and others SK Keyfoundry America Inc. SK Keyfoundry Inc. Semiconductor sales SK Keyfoundry Shanghai Co., Ltd. SK Keyfoundry Inc. Semiconductor sales SK Powertech SK Keyfoundry Inc. Semiconductor manufacturing Intel NDTM US LLC 1 SK hynix NAND Product Solutions Corp. and Solidigm Inc.5 Semiconductor research and development SK hynix semiconductor storage technology (Dalian) Co., Ltd. SK hynix Semiconductor (Dalian) Co., Ltd. Semiconductor manufacturing support SK hynix Semiconductor West Lafayette LLC SK hynix America Inc. Semiconductor manufacturing SK hynix memory solutions Poland sp. z o.o. SK hynix Inc. Semiconductor research and development SHIFTIX HOLDINGS LLC 3 SK hynix NAND Product Solutions Corp. Overseas investment SHIFTIX1 LLC 6 SHIFTIX HOLDINGS LLC Overseas investment Solidigm NAND Product Solutions (Dalian) Co., Ltd.7 SK hynix NAND Product Solutions UK Limited Semiconductor sales 48 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (2) Subsidiaries of the Company as of June 30, 2026 are as follows, Continued 1 The Company s ownership interest decreased due to exercise of stock options by the employees of subsidiarys and its subsidiary during six-month period ended June 30, 2026. 2 Liquidation is in progress as of June 30, 2026. 3 The entity was newly established as a subsidiary of SK Hynix NAND Product Solutions Corp. during the six-month period ended June 30, 2026. 4 As part of the business reorganization of SK hynix NAND Product Solutions Corp., the NAND flash memory and SSD sales and research and development, including related assets, contracts, rights, employees, and the associated assets and liabilities previously held by SK hynix NAND Product Solutions Corp., were transferred to Solidigm Inc. during the six-month period ended June 30, 2026. 5 Certain subsidiaries have been transferred to Solidigm Inc. as of June 30, 2026, and the transfer of the remaining related subsidiaries to Solidigm Inc. is expected to be completed within the current year. 6 The entity was newly established as a subsidiary of SHIFTIX HOLDINGS LLC during the six-month period ended June 30, 2026. 7 The entity was newly established as a subsidiary of SK hynix NAND Product Solutions UK Ltd. during the six-month period ended June 30, 2026. (3) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) For the three-month period ended June 30, 2026 Company Sales and others Purchase and others Asset acquisition Subsidiaries Domestic subsidiaries 1 W 49,007 W 321,636 W 28,974 Overseas sales subsidiaries 4 73,897,032 19,091 Overseas manufacturing subsidiaries 2 86,289 1,764,672 35,246 Overseas R&D centers 16 85,352 190 Associates SK China Company Limited 2,933 SK Japan Inc. 587 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 697 202,241 3,664 SK hynix system ic (Wuxi) Co., Ltd. 1,103 Other related parties SK Telecom Co., Ltd. 23 14,302 14,597 SK Holdings Co., Ltd. 3 4,009 135,532 211,922 SK Ecoplant Co., Ltd. 4 1,453,005 SK Energy Co., Ltd. 604 20,478 SK Networks Co., Ltd. 1,572 Chungcheong energy service Co., Ltd. 11,628 26 SK Siltron Co., Ltd. 1,894 83,445 SK Airplus Inc. 54 2,061 Techdream Co., Ltd. 36,521 SK Tri Chem Co., Ltd. 30,005 SK Aircore Co., Ltd. 35,094 53,736 SK Shieldus Co., Ltd. 75 27,046 4,324 SK Innovation Co., Ltd. 23,066 SK REIT Co., Ltd. 1,244 168 Clean Industrial REIT Co., Ltd 6,169 PRISM Energy International Pte. Ltd. 257,487 Others 20 54,487 841 W 74,040,827 W 3,136,649 W 1,806,693 49 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (3) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the six-month period ended June 30, 2026 Company Sales and others Purchase and others Asset acquisition Subsidiaries Domestic subsidiaries 1 W 99,271 W 637,130 W 44,849 Overseas sales subsidiaries 4 122,106,478 28,720 Overseas manufacturing subsidiaries 2 180,233 3,403,599 87,053 Overseas R&D centers 40 177,647 190 Associates SK China Company Limited 5,771 SK Japan Inc. 998 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 1,076 418,903 9,102 SK hynix system ic (Wuxi) Co., Ltd. 2,224 Other related parties SK Telecom Co., Ltd. 193 28,404 17,078 SK Holdings Co., Ltd. 3 8,017 261,713 214,102 SK Ecoplant Co., Ltd. 7 2,439,275 SK Energy Co., Ltd. 1,304 57,311 SK Networks Co., Ltd. 3,027 Chungcheong energy service Co., Ltd. 29,726 26 SK Siltron Co., Ltd. 3,723 167,919 SK Airplus Inc. 74 3,924 Techdream Co., Ltd. 69,068 SK Tri Chem Co., Ltd. 57,880 SK Aircore Co., Ltd. 68,850 53,736 SK Shieldus Co., Ltd. 135 63,205 4,418 SK Innovation Co., Ltd. 45,575 40 SK REIT Co., Ltd. 2,487 168 Clean Industrial REIT Co., Ltd 12,424 PRISM Energy International Pte. Ltd. 430,286 Others 36 93,670 2,106 W 122,402,811 W 6,068,237 W 2,872,143 1 Sales and others to domestic subsidiaries include the cost reimbursement amount received from domestic subsidiaries such as SK Keyfoundry Inc. etc. for the electricity expenses and others. 2 Sales and others to overseas manufacturing subsidiaries include proceeds from asset disposal that amount to W18,130 million. 3 Royalty expense for the use of the SK brand for the six-month period ended June 30, 2026 is included. 4 Purchases and others from oversea sales subsidiaries for the six-month period ended June 30, 2026 exclude purchase amount on behalf of subsidiaries. 50 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (3) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the three-month period ended June 30, 2025 Company Sales and others Purchase and others Asset acquisition Subsidiaries Domestic subsidiaries1 W 48,302 W 272,969 W 11,629 Overseas sales subsidiaries4 19,440,604 9,517 Overseas manufacturing subsidiaries 2 117,793 1,553,906 40,606 Overseas R&D centers 26 65,229 Associates SK China Company Limited 3,088 SK Japan Inc. (formerly, SK telecom Japan Inc.) 850 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 4,965 193,673 13,703 Other related parties SK hynix system ic (Wuxi) Co., Ltd. 1,031 SK Telecom Co., Ltd. 37 11,391 5,286 SK Holdings Co., Ltd.3 3,895 97,234 140,271 SK Ecoplant Co., Ltd. 5 737,493 SK Energy Co., Ltd. 554 21,710 SK Networks Co., Ltd. 714 SK enpulse Co., Ltd 10,033 Chungcheong energy service Co., Ltd. 8,817 SK Specialty Co., Ltd. SK Siltron Co., Ltd. 1,753 93,617 SK Airplus Inc. (formerly, SK Materials Airplus Inc.) 20 26,044 Techdream Co., Ltd. 37,399 SK Tri Chem Co., Ltd. 23,774 SK Shieldus Co., Ltd. 82 24,417 2,376 SK Innovation Co., Ltd. 18,390 SK REIT Co., Ltd. 1,386 284 Clean Industrial REIT Co., Ltd 6,748 SK LNG Trading Pte., Ltd. 98,612 Others 18 42,616 27,706 W 19,619,085 W 2,622,134 W 979,354 51 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (3) Significant transactions with related parties for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows, Continued: (In millions of Korean won) For the six-month period ended June 30, 2025 Company Sales and others Purchase and others Asset acquisition Subsidiaries Domestic subsidiaries 1 W 98,475 W 547,540 W 23,403 Overseas sales subsidiaries 4 35,276,410 36,379 Overseas manufacturing subsidiaries 2 298,365 3,173,493 64,485 Overseas R&D centers 52 133,097 Associates SK China Company Limited 6,320 SK Japan Inc. (formerly, SK telecom Japan Inc.) 1,732 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 5,422 371,769 20,670 Other related parties SK hynix system ic (Wuxi) Co., Ltd. 2,250 SK Telecom Co., Ltd. 261 23,067 5,286 SK Holdings Co., Ltd. 3 7,789 165,689 141,050 SK Ecoplant Co., Ltd. 9 1,029,356 SK Energy Co., Ltd. 1,372 79,628 SK Networks Co., Ltd. 1,922 32 SK enpulse Co., Ltd 704 21,973 Chungcheong energy service Co., Ltd. 27,940 SK Specialty Co., Ltd. 26,415 SK Siltron Co., Ltd. 3,621 182,902 SK Airplus Inc. (formerly, SK Materials Airplus Inc.) 43 51,813 Techdream Co., Ltd. 68,031 SK Tri Chem Co., Ltd. 46,762 SK Shieldus Co., Ltd. 164 53,576 3,116 SK Innovation Co., Ltd. 42,487 SK REIT Co., Ltd. 2,785 284 Clean Industrial REIT Co., Ltd 13,563 SK LNG Trading Pte., Ltd. 345,494 Others 42 72,329 27,710 W 35,694,979 W 5,496,706 W 1,315,392 1 Sales and others to domestic subsidiaries include the cost reimbursement amount received from domestic subsidiaries such as SK Keyfoundry Inc. etc. for the electricity expenses and others. 2 Sales and others to overseas manufacturing subsidiaries for the six-month period ended June 30, 2025 include proceeds from asset disposal that amount to W47,571 million. 3 Royalty expense for the use of the SK brand for the six-month period ended June 30, 2025 is included. 4 Purchases and others from oversea sales subsidiaries for the six-month period ended June 30, 2025 exclude purchase amount on behalf of subsidiaries. 52 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (4) The balances from significant transactions as of June 30, 2026 and December 31, 2025 are as follows: (In millions of Korean won) June 30, 2026 Company Trade receivables and others Other payables and others Subsidiaries Domestic subsidiaries W 12,039 W 157,802 Overseas sales subsidiaries1 48,562,747 825,130 Overseas manufacturing subsidiaries1 4,251,895 1,705,924 Overseas R&D centers 207 44,110 Associates SK China Company Limited 6,002 SK Japan Inc. 12 1,190 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 701 376,743 SK hynix system ic (Wuxi) Co., Ltd. 378 Other related parties SK Telecom Co., Ltd. 559 15,364 SK Holdings Co., Ltd. 1,475 368,164 SK Ecoplant Co., Ltd. 1,456,650 SK Energy Co., Ltd. 98 14,835 SK Networks Co., Ltd. 1,358 Chungcheong energy service Co., Ltd. 3,385 SK Siltron Co., Ltd. 87,122 66,621 SK Airplus Inc. 7 122,317 Techdream Co., Ltd. 8,420 SK Tri Chem Co., Ltd. 10,983 SK Aircore Co. LTD. 430,452 SK Shieldus Co., Ltd. 29 16,975 SK Innovation Co., Ltd. 3,760 2,734 SK REIT Co., Ltd. 17,330 131,635 Clean Industrial REIT Co., Ltd 499,077 PRISM ENERGY INTERNATIONAL PTE. LTD. 160,599 Others 13,103 48,602 W 52,951,462 W 6,475,072 1 Trade receivables and others include loan to subsidiaries such as SK hynix Semiconductor (Dalian) Co., Ltd., that amount to W5,902,404 million. 53 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (4) The balances from significant transactions as of June 30, 2026 and December 31, 2025 are as follows, Continued: (In millions of Korean won) December 31, 2025 Company Trade receivables and others Other payables and others Subsidiaries Domestic subsidiaries W 12,382 W 154,884 Overseas sales subsidiaries1 18,916,578 699,494 Overseas manufacturing subsidiaries1 4,107,408 1,636,653 Overseas R&D centers 38 99,638 Associates SK China Company Limited 11,174 SK Japan Inc. 1,971 Joint ventures HITECH Semiconductor (Wuxi) Co., Ltd. 616 382,077 SK hynix system ic (Wuxi) Co., Ltd. 392 Other related parties SK Telecom Co., Ltd. 192 17,009 SK Holdings Co., Ltd. 1,468 318,588 SK Ecoplant Co., Ltd. 2,792,416 SK Energy Co., Ltd. 85 25,495 SK Networks Co., Ltd. 2,482 SK enpulse Co., Ltd 705 Chungcheong energy service Co., Ltd. 6,330 SK Siltron Co., Ltd. 104,310 32,965 SK Airplus Inc. 698,786 Techdream Co., Ltd. 4,918 SK Tri Chem Co., Ltd. 9,497 SK Shieldus Co., Ltd. 20 17,121 SK Innovation Co., Ltd. 129 4,103 SK REIT Co., Ltd. 17,330 140,571 Clean Industrial REIT Co., Ltd 524,661 PRISM Energy International Pte. Ltd. 215,472 Others 12,267 122,432 W 23,173,215 W 7,919,442 1 Trade receivables and others include loan to subsidiaries such as SK hynix Semiconductor (Dalian) Co., Ltd. that amount to W6,642,152 million. 54 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (5) Key management compensation The Company considers registered directors who have authority and responsibility for planning, directing and controlling the activities of the Company as key management. The compensation paid to key management for employee services for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) Period ended June 30 2026 2025 Details Three months Six months Three months Six months Salaries W 2,443 W 7,434 W 1,598 W 5,339 Defined benefit plan related expenses 241 498 203 407 Share-based payments 4,547 4,576 258 502 W 7,231 W 12,508 W 2,059 W 6,248 (6) The significant transactions between the Company and the companies that are in the same conglomerate Company according to Fair Trade Law for the three-month and six-month periods ended June 30, 2026 and 2025 are as follows. These entities are not related parties according to Korean IFRS 1024 Related Party Disclosures. (In millions of Korean won) Period ended June 30, 2026 Sales and others Purchase and others Asset acquisition Name of entity Three months Six months Three months Six months Three months Six months SK Chemicals Co., Ltd. W 2 W 2 W W W W SMCore. Inc 662 1,150 1,229 4,045 SK Gas Co., Ltd. 15 30 W 2 W 2 W 677 W 1,180 W 1,229 W 4,045 (In millions of Korean won) Period Ended June 30, 2025 Purchase and others Name of entity Three months Six months SMCore.Inc W 284 W 599 55 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (7) The balances of significant transactions between the Company and the companies that are in the same conglomerate Company designated by Fair Trade Law as of June 30, 2026 and December 31, 2025 are as follows. These entities are not related parties according to Korean IFRS 1024 Related Party Disclosures. (In millions of Korean won) June 30, 2026 Name of entity Trade receivables and others Other payables and others SK Chemicals Co., Ltd. W 2 W SMCore. Inc 420 SK Gas Co., Ltd. 29 W 31 W 420 (In millions of Korean won) December 31, 2025 Name of entity Other payables and others SMCore.Inc. W 5,581 (8) The right-of-use assets and lease liabilities recognized regarding the lease agreements with HITECH Semiconductor (Wuxi) Co., Ltd., a joint venture for the six-month period ended June 30, 2026 amount to W9,102 million (2025: W20,670 million) and W9,102 million (2025: W20,670 million), respectively, and lease payments to HITECH Semiconductor (Wuxi) Co., Ltd. for the six-month period ended June 30, 2026 amount to W28,966 million (2025: W35,925 million). The right-of-use assets and lease liabilities recognized regarding the lease agreements with other related parties including SK Broadband Co., Ltd. for the six-month period ended June 30, 2026 amount to W56,458 million (2025: W28,393 million) and W56,458 million (2025: W28,393 million), respectively, and lease payments to the other related parties including SK Aircore Co., Ltd. for the six-month period ended June 30, 2026 amount to W90,636 million (2025: W83,264 million). (9) As of June 30, 2026, the Company provides financial guarantees on behalf of its subsidiaries, SK hynix NAND Product Solutions Corp. and SK hynix Memory Solutions Poland sp. z o.o., for their lease obligations amounting to USD 71 million and PLN 12 million, respectively. In addition, the Company provides a financial guarantee of USD 1,028 million on behalf of SK hynix Semiconductor West Lafayette LLC for its loan repayment obligations and compliance with the U.S. Department of Commerce s DFA requirements. 56 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 27. Transactions with Related Parties and Others, Continued (10) Financial transactions with related parties for the six-month periods ended June 30, 2026 and 2025 are as follows. (In millions of Korean won) For the six-month period ended June 30, 2026 Company Collection of loans1 Dividend received Dividend paid Subsidiaries Domestic subsidiaries W W 3,000 W Overseas sales subsidiaries 8,086 Overseas manufacturing subsidiaries 1,204,640 890,580 Overseas R&D centers 662 Joint Ventures HITECH Semiconductor (Wuxi) Co., Ltd. 20,533 Specialized Investment-type Private Equity Investment Trust For Growth Of Semiconductor 430 Other related parties SK Square Co., Ltd. 328,725 W 1,204,640 W 923,291 W 328,725 1 During the for the six-month period ended June 30, 2026, the Company collected certain portion of loans from SK hynix Nand Product Solutions Corp. (In millions of Korean won) For the six-month period ended June 30, 2025 Company Collection of loans1 Dividend received Dividend paid Subsidiaries Domestic subsidiaries W W 203,007 W Overseas sales subsidiaries 5,501 Overseas manufacturing subsidiaries 1,215,265 Overseas R&D centers 984 Joint Ventures HITECH Semiconductor (Wuxi) Co., Ltd. 18,472 Other related parties SK Square Co., Ltd. 245,302 W 1,215,265 W 227,964 W 245,302 1 During the for the six-month period ended June 30, 2025, the Company collected certain portion of loans from SK hynix Nand Product Solutions Corp. and SK hynix Semiconductor (China) Ltd. 57 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Commitments and Contingencies (1) As of June 30, 2026, the Company is involved in various legal claims and litigation. In connection with those legal claims and litigation for which no provision was recognized, management does not believe the Company has a present obligation, nor is it expected any of these claims or litigation will have a significant impact on the Company s financial position or operating results in the event an outflow of resources is ultimately necessary. (2) Back-end process service contract with HITECH Semiconductor (Wuxi) Co., Ltd. ( HITECH ) The Company has entered into an agreement with HITECH to be provided with back-end process service by HITECH. The conditions of the service provided includes package, package test, modules and others. According to the agreement, the Company has paid a certain level of guaranteed margin to HITECH as the Company has priority to use HITECH s equipment. (3) Assets provided as collateral Details of assets provided as collateral as of June 30, 2026 are as follows: (In millions of Korean won and millions of U.S. dollars) Book value Pledged amount Amount Currency Amount in USD Amount in KRW Remark Machinery W 829,108 USD 600 924,900 Borrowings for equipment KRW 1,480,000 (In millions of Korean won and millions of U.S. dollars) Book value Collateral liabilities amount Amount Currency Amount in USD Amount in KRW Remark Machinery W 829,108 USD 63 96,344 Borrowings for equipment KRW 1,300,000 58 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Commitments and Contingencies, Continued (4) Financing agreements Details of credit lines with financial institutions as of June 30, 2026 are as follows: (In millions of Korean won and millions of U.S. dollars) Financial institution Commitment Currency Amount Hana Bank and others Import finance including usance USD 330 Comprehensive limit contract for import and export including usance USD 1,582 Overdrafts with banks KRW 20,000 Accounts receivable factoring contracts which have no right to recourse KRW 30,000 Supplier finance arrangement KRW 2,360,000 (5) The Company s commitments in relation to future capital expenditures on property, plant and equipment that have not been recognized as of June 30, 2026 are W60,120,707 million (as of December 31, 2025: W6,415,664 million). (6) Investment in KIOXIA Holdings Corporation ( KIOXIA ) With regard to the Group s interests in KIOXIA through its investments in BCPE Pangea Intermediate Holdings Cayman, L.P. and BCPE Pangea Cayman2 Limited, the equity interests in KIOXIA that the Group may hold, directly or indirectly, are limited to a certain percentage for a specified period following the acquisition date. In addition, during the same restricted period, the Group does not have the right to appoint directors of KIOXIA and, as a result, is unable to exercise significant influence over KIOXIA s operating and management. (7) Acquisition of the Intel NAND business In the process of obtaining a conditional business combination approval for the Intel NAND business acquisition from the Chinese competition authority (Chinese State Administration for Market Regulation) in connection with the first closing of the Intel NAND business completed during the year ended December 31, 2021, the Company was imposed with certain conditions, mainly including the obligation to maintain a reasonable pricing policy, increase production and to support the entry of third-party competitors into the Chinese eSSD market. These obligations apply for a five-year period from December 2021. After the end of this period, the Company may apply for a waiver of the conditions, and the Chinese State Administration for Market Regulation will determine whether to approve the waiver based on the competitive landscape of the Chinese eSSD market at that time. 59 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 28. Commitments and Contingencies, Continued (8) The Company entered into supplier finance arrangements. In accordance with the arrangements, when the finance providers pay the payables related to the Company s trade and other payables to the suppliers, the Company pays the finance providers on the payment due date. In order for the finance providers pay the receivable, the Company had to have received the goods or services and approved the invoices. If suppliers choose early collection of payment, the finance providers pay the amount before the payment due date. The Company settles the trade and other payables with the finance providers on the payment due date. All trade and other payables subject to the supplier finance arrangements are included in trade and other payables in the Company s consolidated statement of financial position. As of June 30, 2026, the amount paid to suppliers under the supplier finance arrangements is W735,000 million. Meanwhile, the amount of the Company s trade and other payables related to supplier finance arrangements does not have a significant effect on non-cash transactions of cash and cash equivalents. 60 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 29. Cash Flows (1) Reconciliations between profit and cash generated from operations for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Profit for the period W 129,203,034 W 14,463,417 Adjustment Income tax expense 38,831,103 2,771,738 Interest expense 260,760 422,999 Interest income (508,161 ) (334,761 ) Dividend income (14,903,668 ) (372,040 ) Depreciation 6,120,454 4,722,905 Amortization 328,440 354,575 Gain on disposal of property, plant and equipment (18,889 ) (84,557 ) Defined benefit plan 96,981 104,090 Gain on disposal of investment in subsidiaries and associates (165,498 ) (84,006 ) Loss on foreign currency translation 864,182 979,684 Gain on foreign currency translation (1,492,847 ) (1,235,970 ) Gain on valuation of financial instruments (62,324,633 ) (2,002,393 ) Loss on derivatives 3,977,121 Others 115,290 213,463 Changes in operating assets and liabilities Increase in trade receivables (29,898,525 ) (1,216,785 ) Increase in inventories (2,706,227 ) (178,734 ) Decrease (increase) in other assets (369,236 ) 221,680 Decrease in loans and other receivables 339,456 108,160 Increase (decrease) in trade payables 297,196 (43,729 ) Increase (decrease) in other payables 191,782 (336,352 ) Increase in other non-trade payables 4,759,299 29,642 Increase (decrease) in provisions (33,539 ) 20,681 Contributions to plan assets (165,000 ) (259,987 ) Others 1,838,163 90,117 Cash generated from operating activities W 74,637,038 W 18,353,837 (2) Details of significant transactions without inflows and outflows of cash for the six-month periods ended June 30, 2026 and 2025 are as follows: (In millions of Korean won) 2026 2025 Decrease in derivative liabilities and exchangeable bonds due to the exercise of exchange rights W 5,792,195 W (3) The Company presented the inflow and outflow of cash from short-term investment assets and related investments in subsidiaries related to MMT, which are frequently traded and have a large total amount and mature in a short period of time, as net increases and decreases. 61 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 30. Share-based Payment (1) Details of the granted share-based payment (a) The Company accounts for share-based payment, with options granted to employees to choose either cash-settled or equity-settled share-based payment, in accordance with the substance of transactions and the details of the share options as of June 30, 2026 are as follows: (In shares) Total numbers of share option granted 1 Forfeited or Cancelled Exercised Outstanding at June 30, 2026 10th 53,329 10,764 10,504 32,061 12th 2 6,405 6,405 13th 3 74,705 29,851 44,854 14th 2 192,998 59,167 27,207 106,624 327,437 99,782 88,970 138,685 Grant date Service Period for Vesting Exercisable Period Exercise price1 (in Korean won) 10th March 20, 2020 March 20, 2020 - March 20, 2023 March 21, 2023 - March 20, 2027 W 86,548 12th 2 March 30, 2021 March 30, 2021 - March 30, 2023 March 31, 2023 - March 30, 2026 138,980 13th 3 March 30, 2021 March 30, 2021 - March 30, 2023 March 31, 2023 - March 30, 2026 138,980 14th 2 March 30, 2022 March 30, 2022 - March 30, 2024 March 31, 2024 - March 30, 2027 124,220 1 During the six-month period ended June 30, 2026, the numbers of share option granted and the exercise price were adjusted due to the retirement of treasury shares. 2 During the six-month period ended June 30, 2026, the share options were exercised as equity-settled share-based payment. 3 During the six-month period ended June 30, 2026, the share options were exercised as equity-settled and cash-settled share-based payment. 62 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 30. Share-based Payment, Continued (1) Details of the granted share-based payment, Continued (b) Details of equity-settled share-based payment granted by the Company are as follows: 1-1st 1-2nd 2nd 3rd Grant date 2022-03-17 2022-04-27 2023-06-28 2024-04-30 Types of shares to be issued Registered common shares Registered common shares Registered common shares Registered common shares Grant method Reissue of treasury shares Reissue of treasury shares Reissue of treasury shares Reissue of treasury shares Number of shares Initial grant size * TSR * Adjustment ratio / Stock price on exercise date 1,3 Initial grant size * TSR * Adjustment ratio / Stock price on exercise date 1,3 Initial grant size * (Adjustment ratio + increase rate of stock price - increase rate of KOSPI200) 2,3 Initial grant size * (Adjustment ratio + increase rate of stock price - increase rate of KOSPI200) 2, Base stock price (in Korean won) W124,000 W108,500 W79,975 W135,975 Exercisable period March 17, 2025 ~ March 17, 2029 4 April 27, 2025 ~ April 27, 2029 5 January 1, 2026 lump sum payment 5 January 1, 2027 lump sum payment Service period for vesting 2 years service from the grant date 2 years service from the grant date 3 years service from January 1, 20236 3 years service from January 1, 20246 1 TSR (Total shareholder return) is calculated as (Stock price on exercise notification date - Base stock price + company s total dividends per share from grant date to exercise notification date)/base stock price , and the adjustment ratio considers the Company s TSR compared to the TSR of its industry peers. 2 The adjustment ratio considers increase rate of stock price, and the maximum adjusted shares is 2 times of initial grant shares. If the increase rate of stock price rises by 100% or higher and exceeds the increase rate of KOSPI200 by 50% points, additional shares equal to the initial grant will be paid. 3 Some of the 1-1st and 1-2nd share-based payments were cancelled and a replacement amount was granted in the 2nd share-based payment. 4 Stock options were exercised during the year ended December 31, 2025 and a portion of the shares remains unpaid as of June 30, 2026. 5 Stock options were exercised during the six-month period ended June 30, 2026 and a portion of the shares remains unpaid as of June 30, 2026. 6 When employed for more than 2 years but less than 3 years, the granted amount is adjusted in proportion to the period of service. (2) Details of liabilities recognized for stock appreciation rights as of June 30, 2026 are as follows: (In millions of Korean won) June 30, 2026 Stock appreciation rights liabilities W 59,077 63 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 30. Share-based Payment, Continued (3) Measurement of fair value (a) The compensation cost is calculated by applying a binomial option-pricing model in estimating the fair value of the option as of June 30, 2026. The inputs used are as follows: 10th 12th 13th 14th Share price (Closing stock price on valuation date, in Korean won) W 530,000 W 530,000 W 530,000 W 530,000 Expected volatility 46.40 % 46.40 % 46.40 % 46.40 % Estimated fair value of share option (in Korean won) W 445,270 W 393,940 W 393,940 W 408,492 Dividend yield ratio 0.42 % 0.42 % 0.42 % 0.42 % Risk free ratio 2.70 % 2.47 % 2.47 % 2.71 % (b) The compensation cost regarding the equity-settled share-based payment granted by the Company is calculated by applying a binomial option-pricing model in estimating the fair value of the option. The inputs used to measure the fair value of the share-based payment as of the grant date are as follows: 1-1st 1-2nd 2nd 3rd Expected volatility 33.92 % 34.22 % 34.81 % 36.85 % Per-share fair value of the option (in Korean won) W 52,729 W 42,064 W 155,443 W 224,203 Dividend yield ratio 1 1.50 % 1.10 % Risk-free interest rate (Government bonds yield) 2.65 % 3.19 % 3.60 % 3.53 % 1 Payout ratio was not taken into consideration as it was assumed that the stock price decline due to dividends would be compensated as the dividend amount until the exercise period is added in the calculation of 1-1st and 1-2nd TSR. (4) The compensation expense for the six-month period ended June 30, 2026 is W27,530 million (2025: W9,942 million). 64 SK hynix Inc. Notes to the Condensed Separate Interim Financial Statements June 30, 2026 and 2025 and December 31, 2025 (Unaudited) 31. Subsequent Event The Company listed 177,900,000 American Depositary Receipts (ADR), representing 17,790,000 shares of common stock, on the Nasdaq Global Select Market in the United States on July 10, 2026. In connecting with the ADR listing, the Company newly issued 17,790,000 shares of common stock through a third-party allotment to Citibank, N.A., the overseas depositary, and the new shares were subsequently listed on the KOSPI Market of the Korea Exchange on July 29, 2026. Issuance of new shares 17,790,000 shares of common stock Method of issuance Paid-in capital increase by third-party allotment Issue price per new share1 USD 1,490 Number of listed securities1 177,900,000 DRs issued Listing exchange (Country) Nasdaq Global Select Market (U.S.A) Total issue amount USD 26,507,100,000 Purpose of financing Facility funds 1 Each share of underlying common stock represents 10 ADRs. 65