Our cash and cash equivalents was held in the following currencies as at December 31, 2025:
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(in billions of Won) |
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Korean Won |
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141 |
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Chinese Yuan |
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150 |
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U.S. Dollar |
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1,261 |
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Other currencies |
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20 |
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Total |
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1,572 |
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We also had short-term deposits in banks of 906 billion, 0.6 billion and 0.6 billion (US$0.4 million), respectively, as of December 31, 2023, 2024 and 2025. The significant decrease in short-term deposits in 2024 compared to 2023 was mainly due to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. Our primary use of cash historically has been to fund capital expenditures related to the expansion and improvement of our production capacity with respect to existing and newly developed products, including the construction and ramping-up of new, or in certain cases, expansion or conversion of existing, fabrication facilities and production lines and the acquisition of new equipment. We also use cash flows from operations for our working capital requirements and servicing our debt payments. We expect our cash requirements for 2026 to be primarily for repayment of maturing debt, working capital requirements and, to a lesser extent, capital expenditures.
As of December 31, 2023, we had current assets of 9,503 billion and current liabilities of 13,885 billion, resulting in a working capital deficit of 4,382 billion. As of December 31, 2024, we had current assets of 10,123 billion and current liabilities of 15,859 billion, resulting in a working capital deficit of 5,736 billion. As of December 31, 2025, we had current assets of 6,982 billion (US$4,833 million) and current liabilities of 9,596 billion (US$6,643 million), resulting in a working capital deficit of 2,614 billion (US$1,810 million). The increase in working capital deficit as of December 31, 2024, compared to the working capital deficit as of December 31, 2023, was primarily attributable to our recognition of liabilities held for sale of 1,657 billion in 2024, resulting from our agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries as discussed above, a 1,265 billion increase in current financial liabilities, which mainly reflected an increase in our current portion of long-term borrowings payable as of the end of 2024 compared to the end of 2023, and a 905 billion decrease in deposits in banks, which was primarily attributable to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. The effects of such changes were partially offset by a 1,198 billion decrease in other accounts payable, which mainly reflected a decrease in our capital expenditures in 2024 compared to 2023, and a 983 billion increase in assets held for sale, which was attributable to our agreement with TCL CSOT as discussed above. The decrease in working capital deficit as of December 31, 2025, compared to the working capital deficit as of December 31, 2024, was primarily attributable to a 2,729 billion decrease in current financial liabilities, which mainly reflected a decrease in our current portion of long-term borrowings payable as of the end of 2025 compared to the end of 2024, the 1,657 billion of liabilities held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such liabilities held for sale recognized in 2025, and a 848 billion decrease in trade accounts and notes payable, which was primarily attributable to differences in the timing of settlement of trade accounts and notes payable between the respective year-ends. The effects of such changes were partially offset by a 1,265 billion decrease in net trade accounts and notes receivable, which was mainly caused by a decrease in our sales revenue as described above, and the 983 billion of assets held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such assets held for sale recognized in 2025.
Our management constantly monitors our working capital, and we have historically been able to satisfy our cash requirements from cash flows from operations and debt financing. We believe that we have sufficient sources of working capital, including in the form of debt financing, for at least the next 12 months following the date of this annual report. In 2025, we entered into a number of short-term and long-term facility loan agreements, from which we have drawn down the full aggregate principal amount of US$150 million and CNY 500 million in short-term loans, and 1,005 billion (US$696 million), US$450 million and CNY 7,383 million in long-term loans, in each case as of December 31, 2025, primarily to fund our capital expenditures and refinance our existing borrowings maturing in 2025.
Our ability to satisfy our cash requirements from cash flows from operations and financing activities will be affected by our ability to maintain and improve our margins and, in the case of external financing, market conditions, which in turn may be affected by various factors outside of our control. Therefore, we re-evaluate our capital requirements regularly in light of our cash flows from operations, the progress of our expansion plans and market conditions. To the extent that we do not generate sufficient cash flows from our operations to meet our capital requirements, we may rely on other financing activities, such as external borrowings and securities offerings, including the issuance of equity, equity-linked and other debt securities.