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6-K 1 d514532d6k.htm FORM 6-K Form 6-K Table of Contents

 

 

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 June 2023

 

 

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

 

 

55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐             No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    .

This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

 

 

 


Table of Contents

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2023 to March 31, 2023)

THIS IS A SUMMARY IN ENGLISH OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE FINANCIAL SERVICES COMMISSION OF KOREA.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS. NON-MATERIAL OR PREVIOUSLY DISCLOSED INFORMATION IS OMITTED OR ABRIDGED.

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


Table of Contents

I. Company Overview

1. Name of the company: Korea Electric Power Corporation (“KEPCO”)

2. Information of the company

(Address) 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

(Phone number) 82-61-345-4213

(Website) http://www.kepco.co.kr

3. Major businesses

KEPCO, as the parent company, is engaged in the following activities:

 

   

development of electric power resources;

 

   

generation, transmission, transformation and distribution of electricity and other related activities;

 

   

research and development of technology related to the businesses mentioned above;

 

   

overseas business related to the businesses mentioned above;

 

   

investment or contributions related to the businesses mentioned above;

 

   

development and operation of certain real estate holdings; and

 

   

other businesses entrusted by the government.

Businesses operated by KEPCO’s major subsidiaries are as follows: nuclear power generation by Korea Hydro & Nuclear Power (KHNP), thermal power generation by Korea South-East Power (KOSEP), Korea Midland Power (KOMIPO), Korea Western Power (KOWEPO), Korea Southern Power (KOSPO) and Korea East-West Power (EWP), other businesses including engineering service by KEPCO Engineering & Construction (KEPCO E&C), maintenance and repair of power plants by KEPCO Plant Service & Engineering (KEPCO KPS), ICT service by KEPCO KDN, nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF), other overseas businesses and investments related to the businesses mentioned above.

4. Consolidated subsidiaries

(As of March 31, 2023)

 

Listed

  

Unlisted

  

Total

2

   159    161


Table of Contents

5. Major changes in management

 

  A.

On February 27, 2023, Mr. Lee, Jung-Bok and Mr. Lee, Jun-Ho were appointed as standing directors for a term of two years in replacement of Mr. Lee, Heyn-Bin and Mr. Lee, Jong-Hwan whose term of office expired.

 

  B.

On March 7, 2023, Mr. Jun, Young-Sang was appointed as a Comptroller & Auditor General and member of the Audit Committee for a term of two years in replacement of Mr. Choi, Young-Ho whose term of office expired.

 

  C.

On May 1, 2023, Mr. Kim, Jun-ki and Mr. Park, Chung-Kun were appointed as non-standing directors in replacement of Mr. Seong, Si-Heon and Ms. Bang, Su-Ran whose term of office expired.

 

  D.

On May 19, 2023, Mr. Cheong, Seung-Il, President & Chief Executive Officer and standing director, resigned from all his positions. Pursuant to KEPCO’s Articles of Incorporation, Mr. Lee, Jung-Bok, a standing director of KEPCO, will serve as the interim President & Chief Executive Officer.

6. Changes in major shareholders

There is no change in major shareholders in the last 5 years.

7. Information regarding KEPCO shares

 

  A.

Issued share capital: Won 3.2 trillion (Authorized capital: Won 6 trillion)

 

  B.

Total number of issued shares: 641,964,077

(Total number of shares authorized to for issuance: 1,200,000,000)

 

  C.

Dividends: KEPCO did not pay any dividend for fiscal year 2022.


Table of Contents

II. Business Overview

1. Consolidated financial results by segment for a three-month period ended March 31, 2022 and 2023

(In billions of Won)

 

     January to March 2022      January to March 2023  
   Sales      Operating
profit
     Sales      Operating
profit
 

Electricity sales

     16,016        -9,162        20,910        -6,347  

Nuclear generation

     2,991        650        2,324        -244  

Thermal generation

     9,941        718        11,073        458  

Plant maintenance & engineering service

     623        32        699        93  

Others(1)

     607        81        626        23  

Subtotal

     30,178        -7,681        35,632        -6,017  

Adjustment for related-party transactions

     -13,714        -106        -14,038        -161  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     16,464        -7,787        21,594        -6,178  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Note:

 

(1)

Others relate to business areas including overseas businesses, etc..

2. Changes in unit prices of major products for a three-month period ended March 31, 2022 and 2023

(In Won per kWh)

 

Business sector

   Company    January to March
2022
     January to March
2023
 

Electricity sold

   Residential    KEPCO      116.06        145.71  
   Commercial      129.79        162.94  
   Educational      99.20        128.01  
   Industrial      108.05        148.26  
   Agricultural      48.35        72.64  
   Street lighting      111.71        141.56  
   Overnight usage      72.94        101.69  

Electricity from nuclear generation

   Nuclear Generation    KHNP      68.18        51.57  

Electricity from thermal generation

   Thermal generation    KOSEP      151.74        171.47  
   KOMIPO      169.91        200.65  
   KOWEPO      163.91        208.91  
   KOSPO      184.62        208.50  
   EWP      170.88        195.26  


Table of Contents

3. Power purchase from generation subsidiaries for a three-month period ended March 31, 2023

 

Company

   Volume
(GWh)
     Expense
(In billions of Won)
 

KHNP

     43,414        2,243  

KOSEP

     9,770        1,671  

KOMIPO

     11,356        2,279  

KOWEPO

     9,881        2,053  

KOSPO

     11,439        2,381  

EWP

     9,160        1,788  

Others

     48,516        11,799  
  

 

 

    

 

 

 

Total

     143,536        24,214  
  

 

 

    

 

 

 

4. Intellectual property as of March 31, 2023

 

     Patents      Utility models      Designs      Trademarks      Total  

KEPCO

     3,055        17        120        72        3,264  

Generation subsidiaries

     3,586        70        89        254        3,999  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     6,641        87        209        326        7,263  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


Table of Contents

III. Financial Information

1. Condensed consolidated financial results as of and for a three-month period March 31, 2022 and 2023

(In billions of Won)

 

Consolidated statements of

comprehensive income

    

Consolidated statements of

financial position

 
     January to
March
2022
     January to
March
2023
         Change               December 31,
2022
     March 31,
2023
     Change  

Sales

     16,464        21,594        5,130     

Total assets

     234,805        234,915        110  

Operating profit (loss)

     -7,787        -6,178        1,609     

Total liabilities

     192,805        197,947        5,142  

Net income (loss)

     -5,926        -4,911        1,015     

Total equity

     42,000        36,968        -5,032  

2. Condensed separate financial results as of and for a three-month period March 31, 2022 and 2023

(In billions of Won)

 

Separate statements of

comprehensive income

    

Separate statements of

financial position

 
     January to
March
2022
     January to
March
2023
         Change               December 31,
2022
     March 31,
2023
     Change  

Sales

     16,016        20,910        4,894     

Total assets

     131,024        130,785        -239  

Operating profit (loss)

     -9,162        -6,347        2,815     

Total liabilities

     108,963        113,753        4,790  

Net income (loss)

     -6,477        -4,932        1,545     

Total equity

     22,061        17,032        -5,029  


Table of Contents

IV. Board of Directors (KEPCO Only)

1. The board of directors is required to consist of not more than 15 directors including the president. Under our Articles of Incorporation, there may not be more than seven standing directors including the president, and more than eight non-standing directors. The number of non-standing directors must exceed the number of standing directors, including our president.

 

*

Subcommittees under the board of directors: The Audit Committee consists of one standing director and two non-standing directors. All such members of the audit committee are independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Korean Commercial Act and the New York Stock Exchange listing standards. The ESG Committee consists of three non-standing directors.

2. Board meetings and agenda for a three-month period ended March 31, 2023

 

Number of meetings

   Number of agendas    Classification
   Resolutions    Reports

4                     

   14    9    5

 

*

The audit committee held 4 meetings with 17 agenda (of which, 10 were approved as proposed and 7 were accepted as reported).

3. Major activities of the Board of Directors for a three-month ended March 31, 2023

 

Date

  

Agenda

  

Results

  

Type

January 19, 2023

   Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director    Approved as proposed    Resolution
   Approval of the safety management plan of 2023    Approved as proposed    Resolution

February 10, 2023

   Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023    Approved as proposed    Resolution

February 24, 2023

   Approval of amendment to the Rules on Employment    Approved as proposed    Resolution
   Approval of the maximum aggregate amount of remuneration for directors in 2023    Approved as proposed    Resolution
   Approval to call for the annual general meeting of shareholders for the fiscal year 2022    Accepted as proposed    Resolution
   Approval of consolidated and separate financial statements for the fiscal year 2022    Accepted as proposed    Resolution
   Report on the results of collective agreement    Accepted as reported    Report
   Report on the annual management of commercial papers in 2022    Accepted as reported    Report
   Report on internal control over financial reporting for the fiscal year 2022    Accepted as reported    Report
   Report on the evaluation of internal control over financial reporting for the fiscal year 2022    Accepted as reported    Report
   Report on audit results for 2022    Accepted as reported    Report
March 24, 2023    Approval of establishment of research-based spin-off companies of KEPCO    Accepted as proposed    Resolution
   Approval of liquidation of the KEPCO-Uhde Inc.    Accepted as proposed    Resolution


Table of Contents

4. Attendance Status of Non-standing directors for a three-month period ended March 31, 2023

 

Date

  

Agenda

  

Park,
Jong-

Bae

  

Bang,
Su-
Ran

  

Park,
Hyo-

Sung

  

Lee,
Kee-

Man

  

Lee,
Kye-

Sung

  

Kim,
Jae-
Shin

  

Kim,
Jong-
Woon

January 19, 2023    Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director    For    For    For    For    For    For    Absent
   Approval of the safety management plan of 2023    For    For    For    For    For    For    Absent
February 10, 2023    Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023    For    For    For    For    For    For    For
February 24, 2023    Approval of amendment to the Rules on Employment    For    For    For    For    For    For    For
   Approval of the maximum aggregate amount of remuneration for directors in 2023    For    For    For    For    For    For    For
   Approval to call for the annual general meeting of shareholders for the fiscal year 2022    For    For    For    For    For    For    For
   Approval of consolidated and separate financial statements for the fiscal year 2022    For    For    For    For    For    For    For
   Report on the results of collective agreement    Agenda for Report
   Report on the annual management of commercial papers in 2022    Agenda for Report
   Report on internal control over financial reporting for the fiscal year 2022    Agenda for Report
   Report on the evaluation of internal control over financial reporting for the fiscal year 2022    Agenda for Report
   Report on audit results for 2022    Agenda for Report
March 24, 2023    Approval of establishment of research-based spin-off companies of KEPCO    For    For    For    For    For    For    For
   Approval of liquidation of the KEPCO-Uhde Inc.    For    For    For    For    For    For    For
     

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Attendance Rate

   100%    100%    100%    100%    100%    100%    75%
     

 

  

 

  

 

  

 

  

 

  

 

  

 


Table of Contents

5. Attendance Status of Standing directors for a three-month period ended March 31, 2023

 

Date

  

Agenda

  

Cheong,
Seung-Il

  

Choi,

Young-
Ho

  

Lee,

Heyn-
Bin

  

Lee,
Jong-
Hwan

  

Park,

Heon-
Gyu

  

Kim,
Tae-
Ok

  

Lee,
Heung-
Joo

  

Jun,
Young-
Sang

  

Lee,
Jung-
Bok

  

Lee,
Jun-
Ho

January 19,
2023
  

Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director

 

   For    For    For    For    For    For    For    Before Appoint
ment
   Before Appoint
ment
   Before Appoint
ment
   Approval of the safety management plan of 2023    For    For    For    For    For    For    For
February 10,
2023
   Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023    For    Retired    For    For    For    For    For    Before Appoint
ment
   Before Appoint
ment
   Before Appoint
ment
February 24, 2023    Approval of amendment to the Rules on Employment    For       For    For    For    For    Absent         
   Approval of the maximum aggregate amount of remuneration for directors in 2023    For       For    For    For    For    Absent         
   Approval to call for the annual general meeting of shareholders for the fiscal year 2022    For       For    For    For    For    Absent   

 

Before Appoint
ment

  

 

Before Appoint
ment

  

 

Before Appoint
ment

   Approval of consolidated and separate financial statements for the fiscal year 2022    For       For    For    For    For    Absent         
   Report on the results of collective agreement    Agenda for Report    Retired    Agenda for Report         
   Report on the annual management of commercial papers in 2022    Agenda for Report       Agenda for Report         
   Report on internal control over financial reporting for the fiscal year 2022    Agenda for Report       Agenda for Report         
   Report on the evaluation of internal control over financial reporting for the fiscal year 2022    Agenda for Report       Agenda for Report         
   Report on audit results for 2022    Agenda for Report       Agenda for Report         
March 24, 2023    Approval of establishment of research-based spin-off companies of KEPCO    For    Retired    Retired    Retired    Absent    For    For    For    For    For
   Approval of liquidation of the KEPCO-Uhde Inc.    For    Absent    For    For    For    For    For
     

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Attendance Rate

   100%    100%    100%    100%    75%    100%    75%    100%    100%    100%
     

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 


Table of Contents

6. Major activities of the Audit Committee for a three-month ended March 31, 2023

 

Date

  

Agenda

  

Results

  

Type

January 19, 2023    Approval of audit plans for 2023    Approved as proposed    Resolution
   Approval of amendments to Internal Audit Regulations and Guidelines for Legal Support on Auditors    Approved as proposed    Resolution
   Approval of appointment of independent auditors of subsidiaries    Approved as proposed    Resolution
   Prior approval for non-audit service for subsidiaries by the independent auditor    Approved as proposed    Resolution
   Report on audit education plans in 2023    Accepted as reported    Report
   Report on independence of independent auditors    Accepted as reported    Report
February 9, 2023    Approval of investigation result on the agenda for the extraordinary general meeting of shareholders    Approved as proposed    Resolution
February 24, 2023    Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees    Approved as proposed    Resolution
   Approval of for the consolidated and separate financial statements and business report for the fiscal year 2022    Approved as proposed    Resolution
   Report on internal control over financial reporting for the fiscal year 2022    Accepted as reported    Report
   Report on the evaluation on internal control over financial reporting for the fiscal year 2022    Accepted as reported    Report
   Report on audit progress by independent auditors for fiscal year 2022    Accepted as reported    Report
   Report on audit results for 2022    Accepted as reported    Report
March 1, 2023    Approval of appointment of independent auditors of subsidiaries    Approved as proposed    Resolution
   Approval of investigation result on the agenda for the annual general meeting of shareholders    Approved as proposed    Resolution
   Approval of auditor’s report for the annual general meeting of shareholders    Approved as proposed    Resolution
   Report on audit results by the independent auditor for the fiscal year 2022    Accepted as reported    Report

 

*

The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company and takes administrative measures as appropriate in accordance with relevant internal regulations.


Table of Contents

9. Attendance Status of the Audit Committee for a three-month ended March 31, 2023

 

Date

  

Agenda

  

Kim, Jae-Shin

  

Park, Hyo-Sung

  

Choi, Young-Ho

  

Jun, Young-Sang

January 19, 2023    Approval of audit plans for 2023    Attended    Attended    Attended   

Before

Appointment

  

 

Approval of amendments to Internal Audit Regulations and Guidelines for Legal Support on auditors

  

 

Approval of appointment of independent auditors of subsidiaries

  

 

Prior approval for non-audit service for subsidiaries by the independent auditor

  

 

Report on audit education plans in 2023

  

 

Report on independence of independent auditors

February 9, 2023    Approval of investigation result on the agenda for the extraordinary general meeting of shareholders    Attended    Attended    Retired   

Before

Appointment

February 24, 2023    Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees    Attended    Attended    Retired   

Before

Appointment

  

 

Approval of for the consolidated and separate financial statements and business report for the fiscal year 2022

  

 

Report on internal control over financial reporting for the fiscal year 2022

  

 

Report on the evaluation on internal control over financial reporting for the fiscal year 2022

  

 

Report on audit progress by independent auditors for fiscal year 2022

  

 

Report on audit results for 2022

March 1, 2023    Approval of appointment of independent auditors of subsidiaries    Attended    Attended    Retired    Attended
  

 

Approval of investigation result on the agenda for the annual general meeting of shareholders

  

 

Approval of auditor’s report for the annual general meeting of shareholders

  

 

Report on audit results by the independent auditor for the fiscal year 2022

     

 

  

 

  

 

  

 

  

Attendance Rate

   100%    100%    100%    100%
     

 

  

 

  

 

  

 


Table of Contents

V. Shareholder’s Meetings

1. Summary of shareholder’s meetings for a three-month period ended March 31, 2023

 

Type

  

Agenda

  

Results

 

Extraordinary

General Meeting

held on

Februray 27, 2023

  

 

Election of two Standing Directors

  

 

Approved as proposed

   Election of a Standing Director as a Comptroller & Auditor General and Member of the Audit Committee    Approved as proposed

Annual

General Meeting

held on

March 28, 2023

   Approval of the consolidated and separate financial statements for the fiscal year 2022    Approved as proposed
   Approval of the maximum aggregate amount of remuneration for directors in 2023    Approved as proposed

VI. Shareholders

1. List of shareholders as of March 31, 2023

 

     Number of
shareholders
     Shares owned      Percentage of
total (%)
 

Government of the Republic of Korea

     1        116,841,794        18.20  

Korea Development Bank

     1        211,235,264        32.90  

Subtotal

     2        328,077,058        51.10  

National Pension Service

     1        40,920,656        6.37  

Public (Non-Koreans)

     Common Shares      1,138        77,904,185        12.14  
     American depositary shares (ADS)      1        10,731,069        1.67  

Public (Koreans)

     704,354        184,331,109        28.72  
       

 

 

    

 

 

    

 

 

 

Total

     705,496        641,964,077        100.00  
       

 

 

    

 

 

    

 

 

 

 

   

Percentages are based on issued shares of common stock.

 

   

All of our shareholder have equal voting rights.

 

   

Citibank, N.A. is our depositary bank and each ADS represents one-half of one share of our common stock.


Table of Contents

VII. Directors and employees as of and for a three-month period ended March 31, 2023 (KEPCO Only)

1. Directors

 

     (In thousands of Won)

Type

   Number of
directors
     Total
remuneration
     Average
remuneration
per person
    

Remarks

Standing director

     6        202,735        33,789      Excluding members of the Audit Committee

Non-standing director

     5        37,500        7,500  

Member of Audit Committee

     Standing director      1        15,000        7,500      —  
     Non-standing director      2        32,658        7,500      —  
       

 

 

    

 

 

    

 

 

    

 

Total

     14        287,893        20,564      —  
       

 

 

    

 

 

    

 

 

    

 

2. Employees

 

     (In thousands of Won)  

Type

   Number of employees      Average
continuous
service year
     Total
salaries
     Average
salaries
per person
 
   Regular      Non-regular      Total  

Male

     17,848        75        17,923        15.0        411,855,878        22,758  

Female

     5,331        49        5,380        13.3        102,616,060        19,008  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     23,179        124        23,303        14.6        514,471,939        21,897  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


Table of Contents

VIII. Other Information Necessary for the Protection of Investors

1. Pending legal proceedings as of March 31, 2023

 

(In billions of Won)  

Type

   Number of
lawsuits
     Amount
claimed
 

Lawsuits where KEPCO and its subsidiaries are engaged as the defendants

     665        907  

Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs

     238        546  

2. Sanctions as of March 31, 2023

 

Prosecution
Date

  

Subject

  

Sanctions

  

Relevant laws (charges)

  

Proceedings

  

Position

  

Tenure

June 30, 2021   

CEO of Korea Hydro & Nuclear Power Co., Ltd.

(Former)

   4yrs    Prosecution without detention   

The Act on the Aggravated Punishment, etc. of specific economic crimes (Occupational breach of trust),

The Criminal Act

   In the progress in the district court


Table of Contents

SIGNATURES

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

 

By:  

/s/ Park, WooGun

Name:   Park, WooGun
Title:   Vice President

Date: June 1, 2023


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KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim consolidated Financial Statements

For the three-month periods ended March 31, 2023 and 2022

(With Independent Auditor’s Review Report Thereon)


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LOGO

Report on review of interim consolidated financial statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors

Korea Electric Power Corporation:

We have reviewed the accompanying interim consolidated financial statements of Korea Electric Power Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated statement of financial position as of March 31, 2023, and the related interim consolidated statements of comprehensive income (loss), interim consolidated statements of changes in equity and interim consolidated statements of cash flows for the three-month periods ended March 31, 2023 and 2022, and material accounting policy information and other explanatory information.

Management’s responsibility for the interim consolidated financial statements

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

Auditor’s responsibility

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

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

Conclusion

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

Other Matter

We have audited the consolidated statement of financial position of the Group as of December 31, 2022, and the related consolidated statement of comprehensive income (loss), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSA, and our report dated March 13, 2023 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2022 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

 

LOGO

May 15, 2023

 

This review report is effective as of May 15, 2023, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim consolidated financial statements and may result in modifications to this review report.


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KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For the three-month periods ended March 31, 2023 and 2022

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

Seung-il Cheong

President/CEO

Korea Electric Power Corporation

Corporate Address: #55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, KOREA

Phone Number: 061-345-3114(day) / 061-345-3203(night)


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Financial Position

As of March 31, 2023 (Unaudited) and December 31, 2022

 

In millions of won    Note      March 31, 2023      December 31, 2022  

Assets

        

Current assets

        

Cash and cash equivalents

     5,6,7,44      3,095,568        3,234,780  

Current financial assets, net

     5,6,9,11,12,13,44,46        2,317,599        4,286,975  

Trade and other receivables, net

     5,8,20,24,44,45,46        9,391,262        10,461,822  

Inventories, net

     14        9,825,152        9,930,732  

Income tax receivables

        56,852        46,619  

Current non-financial assets

     15        1,795,165        1,744,869  

Assets held-for-sale

     16,41        44,748        44,748  
     

 

 

    

 

 

 

Total current assets

        26,526,346        29,750,545  
     

 

 

    

 

 

 

Non-current assets

        

Non-current financial assets, net

     5,6,9,10,11,12,13,44,46        3,534,510        3,336,835  

Non-current trade and other receivables, net

     5,8,20,44,45,46        2,240,732        2,153,080  

Property, plant and equipment, net

     18,24,27,48        178,429,728        177,865,308  

Investment properties, net

     19,27        165,249        208,286  

Goodwill

     16        125,525        100,093  

Intangible assets other than goodwill, net

     21,27,45        975,714        956,664  

Investments in associates

     4,17        6,342,208        5,844,464  

Investments in joint ventures

     4,17        3,291,845        3,147,584  

Defined benefit assets, net

     25        130,546        198,626  

Deferred tax assets

        12,872,900        10,934,375  

Non-current non-financial assets

     15        279,725        309,134  
     

 

 

    

 

 

 

Total non-current assets

        208,388,682        205,054,449  
     

 

 

    

 

 

 

Total Assets

     4      234,915,028        234,804,994  
     

 

 

    

 

 

 

 

(Continued)

 

1


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Financial Position, Continued

As of March 31, 2023 (Unaudited) and December 31, 2022

 

In millions of won    Note      March 31, 2023      December 31, 2022  

Liabilities

        

Current liabilities

        

Trade and other payables, net

     5,22,24,44,46      10,580,959        11,983,549  

Current financial liabilities, net

     5,12,23,44,46        22,077,328        22,703,996  

Income tax payables

        354,553        429,604  

Current non-financial liabilities

     20,28,29        7,674,333        6,974,377  

Current provisions

     26,44        2,716,292        2,427,051  
     

 

 

    

 

 

 

Total current liabilities

        43,403,465        44,518,577  
     

 

 

    

 

 

 

Non-current liabilities

        

Non-current trade and other payables, net

     5,22,24,44,46        5,551,639        5,638,914  

Non-current financial liabilities, net

     5,12,23,44,46        104,544,371        98,334,120  

Non-current non-financial liabilities

     28,29        10,716,315        10,662,661  

Employee benefits liabilities, net

     25,44        1,018,972        828,721  

Deferred tax liabilities

        6,310,294        6,457,103  

Non-current provisions

     26,44        26,402,258        26,364,642  
     

 

 

    

 

 

 

Total non-current liabilities

        154,543,849        148,286,161  
     

 

 

    

 

 

 

Total Liabilities

     4      197,947,314        192,804,738  
     

 

 

    

 

 

 

Equity

        

Contributed capital

     1,30,44     

Share capital

      3,209,820        3,209,820  

Share premium

        843,758        843,758  
     

 

 

    

 

 

 
        4,053,578        4,053,578  
     

 

 

    

 

 

 

Retained earnings

     31        

Legal reserves

        1,604,910        1,604,910  

Voluntary reserves

        2,812,313        27,782,969  

Unappropriated retained earnings (undisposed deficit)

        11,914,132        (7,956,579
     

 

 

    

 

 

 
        16,331,355        21,431,300  
     

 

 

    

 

 

 

Other components of equity

     33        

Other capital surplus

        1,268,556        1,268,569  

Accumulated other comprehensive income

        570,890        496,976  

Other equity

        13,294,972        13,294,973  
     

 

 

    

 

 

 
        15,134,418        15,060,518  
     

 

 

    

 

 

 

Equity attributable to owners of the controlling company

        35,519,351        40,545,396  

Non-controlling interests

     16,32        1,448,363        1,454,860  
     

 

 

    

 

 

 

Total Equity

      36,967,714        42,000,256  
     

 

 

    

 

 

 

Total Liabilities and Equity

      234,915,028        234,804,994  
     

 

 

    

 

 

 

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

 

2


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss)

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won, except per share information    Note      March 31, 2023     March 31, 2022  

Sales

     4,34,44,46       

Sales of goods

      21,143,505       16,037,796  

Sales of services

        149,162       111,074  

Sales of construction services

     20        119,520       140,794  

Revenue related to transfer of assets from customers

     28        181,835       174,406  
     

 

 

   

 

 

 
        21,594,022       16,464,070  
     

 

 

   

 

 

 

Cost of sales

     14,25,42,46       

Cost of sales of goods

        (26,788,175     (23,329,638

Cost of sales of services

        (127,039     (140,822

Cost of sales of construction services

        (164,780     (132,378
     

 

 

   

 

 

 
        (27,079,994     (23,602,838
     

 

 

   

 

 

 

Gross loss

        (5,485,972     (7,138,768

Selling and administrative expenses

     25,35,42,46        (691,587     (648,154
     

 

 

   

 

 

 

Operating loss

     4        (6,177,559     (7,786,922

Other income

     36        89,736       75,288  

Other expenses

     36        (21,070     (49,244

Other gains (losses), net

     37        13,264       (9,847

Finance income

     5,12,38        697,215       286,235  

Finance expenses

     5,12,39        (1,697,817     (928,164

Profit (loss) related to associates, joint ventures and subsidiaries

     4,16,17       

Gain on valuation of investments in associates and joint ventures

        274,525       391,681  

Gain on disposal of investments in associates and joint ventures

        9,473       4,538  

Loss on valuation of investments in associates and joint ventures

        (42,614     (88,564

Loss on disposal of investments in associates and joint ventures

        —         (315
     

 

 

   

 

 

 
        241,384       307,340  
     

 

 

   

 

 

 

Loss before income tax

        (6,854,847     (8,105,314

Income tax benefit

     40        1,943,614       2,179,390  
     

 

 

   

 

 

 

Loss for the period

      (4,911,233     (5,925,924

 

(Continued)

 

3


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss), Continued

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won, except per share information    Note      March 31, 2023     March 31, 2022  

Other comprehensive income (loss), net of tax

     5,12,25,31,33       

Items that will not be reclassified subsequently to profit or loss:

       

Remeasurement of defined benefit liability

     25,31      (170,648)       148,328  

Share of other comprehensive income of associates and joint ventures

     31        4,024       1,487  

Net change in fair value of financial assets at fair value through other comprehensive income (loss)

     33        (56,874     21,354  

Items that may be reclassified subsequently to profit or loss:

       

Net change in the unrealized fair value of derivatives using cash flow hedge accounting

     5,12,33        3,614       (34,744

Foreign currency translation of foreign operations

     33        23,485       77,235  

Share of other comprehensive income of associates and joint ventures

     33        110,590       165,314  
     

 

 

   

 

 

 

Other comprehensive income (loss) for the period

        (85,809     378,974  
     

 

 

   

 

 

 

Total comprehensive loss for the period

      (4,997,042     (5,546,950
     

 

 

   

 

 

 

Profit (loss) attributable to:

     43       

Owners of the controlling company

      (4,946,503     (5,952,856

Non-controlling interests

        35,270       26,932  
     

 

 

   

 

 

 
      (4,911,233     (5,925,924
     

 

 

   

 

 

 

Total comprehensive income (loss) attributable to:

       

Owners of the controlling company

      (5,026,031     (5,590,146

Non-controlling interests

        28,989       43,196  
     

 

 

   

 

 

 
      (4,997,042     (5,546,950
     

 

 

   

 

 

 

Loss per share (in won)

     43       

Basic and diluted loss per share

      (7,705     (9,273

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

 

4


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won    Equity attributable to owners of the controlling company     Non-
controlling
interests
       
     Contributed
capital
     Retained
earnings
    Other
components
of equity
    Subtotal     Total
equity
 

Balance as of January 1, 2022

   4,053,578        45,258,244       14,468,450       63,780,272       1,546,434       65,326,706  

Total comprehensive income (loss) for the period

             

Profit (loss) for the period

     —          (5,952,856     —         (5,952,856     26,932       (5,925,924

Items that will not be reclassified subsequently to profit or loss:

             

Remeasurement of defined benefit liability, net of tax

     —          140,385       —         140,385       7,943       148,328  

Share of other comprehensive income of associates and joint ventures, net of tax

     —          1,487       —         1,487       —         1,487  

Net change in fair value of financial assets at fair value through other comprehensive income, net of tax

     —          —         21,353       21,353       1       21,354  

Items that may be reclassified subsequently to profit or loss:

             

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

     —          —         (37,627     (37,627     2,883       (34,744

Foreign currency translation of foreign operations, net of tax

     —          —         71,798       71,798       5,437       77,235  

Share of other comprehensive income of associates and joint ventures, net of tax

     —          —         165,314       165,314       —         165,314  

Transactions with owners of the Group, recognized directly in equity

             

Dividends paid

     —          —         —         —         (32,520     (32,520

Additional paid-in capital and others

     —          153       (519     (366     8,891       8,525  

Transactions between consolidated entities

     —          —         —         —         1,778       1,778  

Dividends paid for hybrid bonds

     —          —         —         —         (3,346     (3,346
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of March 31, 2022

   4,053,578        39,447,413       14,688,769       58,189,760       1,564,433       59,754,193  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(Continued)

 

5


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity, Continued

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won    Equity attributable to owners of the controlling company     Non-
controlling
interests
       
     Contributed
capital
     Retained
earnings
    Other
components
of equity
    Subtotal     Total
equity
 

Balance as of January 1, 2023

   4,053,578        21,431,300       15,060,518       40,545,396       1,454,860       42,000,256  

Total comprehensive income (loss) for the period

             

Profit (loss) for the period

     —          (4,946,503     —         (4,946,503     35,270       (4,911,233

Items that will not be reclassified subsequently to profit or loss:

             

Remeasurement of defined benefit liability, net of tax

     —          (157,466     —         (157,466     (13,182     (170,648

Share of other comprehensive income of associates and joint ventures, net of tax

     —          4,024       —         4,024       —         4,024  

Net change in fair value of financial assets at fair value through other comprehensive income, net of tax

     —          —         (56,872     (56,872     (2     (56,874

Items that may be reclassified subsequently to profit or loss:

             

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

     —          —         3,615       3,615       (1     3,614  

Foreign currency translation of foreign operations, net of tax

     —          —         16,581       16,581       6,904       23,485  

Share of other comprehensive income of associates and joint ventures, net of tax

     —          —         110,590       110,590       —         110,590  

Transactions with owners of the Group, recognized directly in equity

             

Dividends paid

     —          —         —         —         (38,552     (38,552

Additional paid-in capital and others

     —          —         (1     (1     4,645       4,644  

Transactions between consolidated entities

     —          —         34       34       —         34  

Changes in consolidation scope

     —          —         (47     (47     384       337  

Dividends paid for hybrid bonds

     —          —         —         —         (1,963     (1,963
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of March 31, 2023

   4,053,578        16,331,355       15,134,418       35,519,351       1,448,363       36,967,714  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

6


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won    March 31, 2023     March 31, 2022  

Cash flows from operating activities

    

Loss for the period

   (4,911,233     (5,925,924
  

 

 

   

 

 

 

Adjustments to reconcile loss for the period to net cash provided by operating activities:

    

Income tax benefit

     (1,943,614     (2,179,390

Depreciation

     3,207,974       3,087,741  

Amortization

     41,410       35,274  

Employee benefit expense

     87,019       116,884  

Bad debt expense

     1,797       10,823  

Interest expense

     1,048,078       563,911  

Loss on disposal of financial assets

     217       234  

Loss on disposal of property, plant and equipment

     11,304       29,976  

Loss on abandonment of property, plant and equipment

     46,118       45,479  

Loss on impairment of property, plant and equipment

     2,021       —    

Loss on impairment of intangible assets

     283       —    

Loss on disposal of intangible assets

     57       19  

Increase in provisions

     644,751       670,394  

Loss on foreign currency translation, net

     461,077       267,572  

Gain on valuation of financial assets at fair value through profit or loss

     (17,695     (1,612

Loss on valuation of financial assets at fair value through profit or loss

     974       11,138  

Valuation and transaction gain on derivative instruments, net

     (395,640     (144,392

Gain on valuation of investments in associates and joint ventures, net

     (231,911     (303,117

Gain on disposal of financial assets

     (2,493     (940

Gain on disposal of property, plant and equipment

     (6,567     (7,040

Gain on disposal of associates and joint ventures

     (9,473     (4,538

Loss on disposal of associates and joint ventures

     —         315  

Interest income

     (102,946     (61,269

Dividends income

     (189     (8,455

Others, net

     (10,271     7,442  
  

 

 

   

 

 

 
     2,832,281       2,136,449  
  

 

 

   

 

 

 

Changes in working capital:

    

Trade receivables

     1,059,311       922,365  

Non-trade receivables

     189,100       (303,920

Accrued income

     1,462       (164,675

Other receivables

     20,152       (5,152

Other current assets

     (123,918     (641,058

Inventories

     (200,121     (475,161

Other non-current assets

     42,191       15,444  

Trade payables

     (408,581     1,304,649  

Non-trade payables

     (970,172     (13,910

Accrued expenses

     16,496       (74,041

Other liabilities

     —         (2

Other current liabilities

     640,281       378,066  

Other non-current liabilities

     13,939       215,604  

Investments in associates and joint ventures (dividends received)

     71,912       71,790  

Provisions

     (474,012     (255,580

Payments of employee benefit obligations

     (101,783     (64,179

Plan assets

     (532     —    
  

 

 

   

 

 

 
   (224,275     910,240  
  

 

 

   

 

 

 

 

(Continued)

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows, Continued

For the three-month periods ended March 31, 2023 and 2022 (Unaudited)

 

In millions of won    March 31, 2023     March 31, 2022  

Cash generated from operating activities

   (2,303,227     (2,879,235

Dividends received

     28,875       8,455  

Interest paid

     (1,044,659     (554,817

Interest received

     73,938       63,819  

Income taxes paid

     (204,919     (140,721
  

 

 

   

 

 

 

Net cash flows used in operating activities

     (3,449,992     (3,502,499
  

 

 

   

 

 

 

Cash flows from investing activities

    

Proceeds from disposals of investments in associates and joint ventures

     1,196       2,706  

Acquisition of investments in associates and joint ventures

     (295,381     (61,702

Proceeds from disposals of property, plant and equipment

     82,926       72,222  

Acquisition of property, plant and equipment

     (3,440,345     (2,668,746

Proceeds from disposals of intangible assets

     1       —    

Acquisition of intangible assets

     (28,583     (10,010

Proceeds from disposals of financial assets

     2,856,077       970,698  

Acquisition of financial assets

     (809,068     (2,486,554

Increase in loans

     (26,484     (76,828

Collection of loans

     21,583       15,769  

Increase in deposits

     (80,879     (73,163

Decrease in deposits

     60,037       39,699  

Receipt of government grants

     9,540       10,106  

Net cash outflow from changes in consolidation scope

     (29,037     —    

Other cash outflow from investing activities, net

     (91,526     (30,546
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (1,769,943     (4,296,349
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from short-term borrowings, net

     (2,899,586     2,742,414  

Proceeds from long-term borrowings and debt securities

     9,998,430       8,316,127  

Repayment of long-term borrowings and debt securities

     (1,868,776     (2,400,026

Payment of lease liabilities

     (163,649     (158,608

Settlement of derivative instruments, net

     (4,707     42,938  

Change in non-controlling interests

     (545     10,341  

Dividends paid for hybrid bonds

     (2,553     (4,415

Other cash outflow from financing activities, net

     (991     (1,079
  

 

 

   

 

 

 

Net cash flows provided by financing activities

     5,057,623       8,547,692  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations

     (162,312     748,844  

Effect of exchange rate fluctuations on cash held

     23,100       31,480  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (139,212     780,324  

Cash and cash equivalents as of January 1, 2023

     3,234,780       2,635,238  
  

 

 

   

 

 

 

Cash and cash equivalents as of March 31, 2023

   3,095,568       3,415,562  
  

 

 

   

 

 

 

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

 

8


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements

March 31, 2023 and 2022 (Unaudited)

 

1.

Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1110 Consolidated Financial Statements, was incorporated on January 1, 1982 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO’s stock was listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju, Jeollanam-do.

As of March 31, 2023, KEPCO’s share capital amounts to 3,209,820 million and KEPCO’s shareholders are as follows:

 

     Number of shares      Percentage of
ownership
 

The Government of the Republic of Korea

     116,841,794        18.20

Korea Development Bank

     211,235,264        32.90

Other (*)

     313,887,019        48.90
  

 

 

    

 

 

 
     641,964,077        100.00
  

 

 

    

 

 

 

 

(*)

The number of shares held by foreign shareholders are 88,959,339 shares(13.86%) as of December 31, 2022, the most recent closing date of shareholder list.

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

 

2.

Basis of Preparation

 

(1)

Statement of compliance

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

 

(2)

Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statements of financial position:

 

   

financial assets at fair value through profit or loss

 

   

financial assets at fair value through other comprehensive income or loss

 

   

derivative financial instruments are measured at fair value

 

   

liabilities for defined benefit plans are recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets

 

(3)

Functional and presentation currency

These consolidated financial statements are presented in Korean won (presented as “won” or “KRW”), which is also the functional currency of KEPCO and most of the significant operating subsidiaries.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

2.

Basis of Preparation, Continued

 

(4)

Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The followings are the key assumptions and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

 

  (i)

Useful lives of property, plant and equipment, and estimations on provision for decommissioning costs

The Group reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Management’s assumptions could affect the determination of estimated economic useful lives.

The Group records the fair value of estimated decommissioning costs as a liability in the period in which the Group incurs a legal obligation associated with the retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. The Group is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.

 

  (ii)

Deferred tax

The Group recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities of each consolidated taxpaying entity. However, the amount of deferred tax assets may be different if the Group determines the estimated future taxable income is not sufficient to realize the deferred tax assets recognized.

 

  (iii)

Valuations of financial instruments at fair values

The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

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

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

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

 

  (iv)

Defined employee benefit liabilities

The Group offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).

 

10


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

2.

Basis of Preparation, Continued

 

 

(4)

Use of estimates and judgments, continued

 

  (v)

Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of March 31, 2023 and 2022 are 1,782,255 million and 1,392,211 million, respectively.

 

  (vi)

Construction contracts

The Group recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Group’s progress towards complete satisfaction of providing the power plant construction, which has been identified as a single performance obligation. In applying the cost-based input method, it is necessary to use estimates and assumptions related to the Group’s efforts or inputs expected to be incurred. Costs incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however, it can also be affected by uncertainties resulting from unexpected future events.

 

11


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

2.

Basis of Preparation, Continued

 

(5)

Changes in accounting policies

Changes in accounting standards effective from January 1, 2023 are as follows. The Group believes that these amendments have no significant impact on the Group’s interim consolidated financial statements. The Group has not early adopted any other standards, interpretations or amendments that has been issued but is not yet effective.

Amendments to KIFRS 1117 Insurance Contracts

The amendments provide a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. KIFRS 1117 replaces KIFRS 1104 that was issued in 2005. KIFRS 1117 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. The overall objective of KIFRS 1117 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in KIFRS 1104, which are largely based on grandfathering previous local accounting policies, KIFRS 1117 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. KIFRS 1117 is based on a general model, supplemented by:

- A specific adaptation for contracts with direct participation features (the variable fee approach)

- A simplified approach (the premium allocation approach) mainly for short-duration contracts.

Amendments to KIFRS 1008 – Definition of Accounting Estimates

The amendments to KIFRS 1008 clarify the distinction between changes in accounting estimates, and changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.

Amendments to KIFRS 1001 – Disclosure of Accounting Policies

The amendments to KIFRS 1001 provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

Amendments to KIFRS 1012 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendments KIFRS 1012 Income Taxes narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities.

 

12


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

3.

Material Accounting Policies

The accounting policies applied by the Group in these interim consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2022, except for the changes described in Note 2.(5).

 

4.

Segment, Geographic and Other Information

 

(1)

Segment determination and explanation of the measurements

The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by chief operating decision makers of the Group including but not limited to the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Group’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation (Non-nuclear)’, ‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business Unit that manages the Group’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under KIFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arm’s-length basis at market prices that would be applicable to an independent third party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

 

13


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(2)

Financial information of the segments for the three-month periods ended March 31, 2023 and 2022, respectively, are as follows:

 

In millions of won                                                

March 31, 2023

 

Segment

  Total
segment
revenue
    Intersegment
revenue
    Revenue
from
external
customers
    Operating
profit (loss)
    Depreciation
and
amortization
    Interest
income
    Interest
expense
    Profit (loss) related
associates, joint
ventures and
subsidiaries
 

Transmission and distribution

  20,910,408       470,437       20,439,971       (6,347,198     1,056,059       25,844       641,129       131,712  

Electric power generation (Nuclear)

    2,323,476       2,297,761       25,715       (244,060     1,110,986       12,977       171,940       (5,383

Electric power generation (Non-nuclear)

    11,072,912       10,192,607       880,305       457,737       1,027,405       13,922       181,021       116,522  

Plant maintenance & engineering service

    699,461       588,600       110,861       93,273       30,734       4,877       359       (1,467

Others

    626,117       488,947       137,170       23,427       61,155       56,938       68,889       —    

Consolidation adjustments

    (14,038,352     (14,038,352     —         (160,738     (36,955     (11,612     (15,260     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  21,594,022       —         21,594,022       (6,177,559     3,249,384       102,946       1,048,078       241,384  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
In millions of won                                                

March 31, 2022

 

Segment

  Total
segment
revenue
    Intersegment
revenue
    Revenue
from
external
customers
    Operating
profit (loss)
    Depreciation
and
amortization
    Interest
income
    Interest
expense
    Profit (loss) related
associates, joint
ventures and
subsidiaries
 

Transmission and distribution

  16,015,549       481,812       15,533,737       (9,162,365     1,020,728       10,451       223,707       205,426  

Electric power generation (Nuclear)

    2,991,466       2,972,700       18,766       650,357       1,013,053       5,190       138,529       1,758  

Electric power generation (Non-nuclear)

    9,941,278       9,326,481       614,797       718,526       1,041,897       8,079       158,488       100,394  

Plant maintenance & engineering service

    623,238       532,839       90,399       32,251       30,507       2,834       343       (238

Others

    606,460       400,089       206,371       80,644       39,551       41,743       50,096       —    

Consolidation adjustments

    (13,713,921     (13,713,921     —         (106,335     (22,721     (7,028     (7,252     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  16,464,070       —         16,464,070       (7,786,922     3,123,015       61,269       563,911       307,340  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

14


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(3)

Information related to segment assets and segment liabilities as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won       

March 31, 2023

 

Segment

   Segment
assets
     Investments in
associates and
joint ventures
     Acquisition of
non-current
assets
     Segment
liabilities
 

Transmission and distribution

   130,785,496        5,952,029        1,776,399        113,753,481  

Electric power generation (Nuclear)

     69,103,912        145,973        776,611        43,135,578  

Electric power generation (Non-nuclear)

     68,989,265        3,481,370        616,092        39,332,232  

Plant maintenance & engineering service

     4,128,356        54,681        36,888        1,418,482  

Others

     13,103,272        —          172,407        5,864,050  

Consolidation adjustments

     (51,195,273      —          (5,893      (5,556,509
  

 

 

    

 

 

    

 

 

    

 

 

 
   234,915,028        9,634,053        3,372,504        197,947,314  
  

 

 

    

 

 

    

 

 

    

 

 

 
In millions of won       

December 31, 2022

 

Segment

   Segment
assets
     Investments in
associates and
joint ventures
     Acquisition of
non-current
assets
     Segment
liabilities
 

Transmission and distribution

   131,023,727        5,678,141        6,055,179        108,963,058  

Electric power generation (Nuclear)

     69,129,625        143,304        2,008,409        42,843,974  

Electric power generation (Non-nuclear)

     69,468,039        3,113,918        3,547,815        40,428,907  

Plant maintenance & engineering service

     4,051,157        56,685        200,338        1,272,408  

Others

     12,895,981        —          839,885        5,796,718  

Consolidation adjustments

     (51,763,535      —          (38,633      (6,500,327
  

 

 

    

 

 

    

 

 

    

 

 

 
   234,804,994        8,992,048        12,612,993        192,804,738  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(4)

Geographic information

Electricity sales, the main operations of the Group, are conducted in the Republic of Korea. The following information on revenue from external customers and non-current assets is determined by the location of the customers and of the assets:

 

In millions of won    Revenue from external customers      Non-current assets (*2)  

Geographical unit

   March 31, 2023      March 31, 2022      March 31, 2023      December 31, 2022  

Domestic

   21,376,922        16,183,995        184,736,072        183,707,117  

Overseas (*1)

     217,100        280,075        4,873,922        4,724,416  
  

 

 

    

 

 

    

 

 

    

 

 

 
   21,594,022        16,464,070        189,609,994        188,431,533  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Middle East and other Asian countries make up the majority of overseas revenue and non-current assets. Since the overseas revenue or non-current assets attributable to particular countries are not material, they are not disclosed individually.

(*2)

The amounts exclude financial assets, deferred tax assets and defined benefit assets.

 

(5)

Information on significant customers

There is no single customer who accounts for 10% or more of the Group’s revenue for the three-month periods ended March 31, 2023 and 2022.

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

5.

Classification of Financial Instruments

 

(1)

Classification of financial assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Financial assets
at fair value
through profit
or loss
     Financial assets
at fair value
through other
comprehensive
income
     Financial assets
at amortized cost
     Derivative assets
(applying hedge
accounting)
     Total  

Current assets

              

Cash and cash equivalents

   —          —          3,095,568        —          3,095,568  

Current financial assets

              

Current financial assets at fair value through profit or loss

     1,165,783        —          —          —          1,165,783  

Current financial assets at amortized costs

     —          —          16,604        —          16,604  

Current derivative assets

     176,205        —          —          223,513        399,718  

Other financial assets

     —          —          735,494        —          735,494  

Trade and other receivables

     —          —          9,391,262        —          9,391,262  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     1,341,988        —          13,238,928        223,513        14,804,429  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

 

           

Non-current financial assets

              

Non-current financial assets at fair value through profit or loss

     553,222        —          —          —          553,222  

Non-current financial assets at fair value through other comprehensive income

     —          468,919        —          —          468,919  

Non-current financial assets at amortized costs

     —          —          10,246        —          10,246  

Non-current derivative assets

     651,227        —          —          240,378        891,605  

Other financial assets

     —          —          1,610,518        —          1,610,518  

Trade and other receivables

     —          —          2,240,732        —          2,240,732  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     1,204,449        468,919        3,861,496        240,378        5,775,242  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   2,546,437        468,919        17,100,424        463,891        20,579,671  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(1)

Classification of financial assets as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won    December 31, 2022  
     Financial assets
at fair value
through profit
or loss
     Financial assets
at fair value
through other
comprehensive
income
     Financial assets at
amortized cost
     Derivative assets
(applying hedge
accounting)
     Total  

Current assets

              

Cash and cash equivalents

   —          —          3,234,780        —          3,234,780  

Current financial assets

              

Current financial assets at fair value through profit or loss

     3,181,791        —          —          —          3,181,791  

Current financial assets at amortized costs

     —          —          16,762        —          16,762  

Current derivative assets

     154,730        —          —          134,873        289,603  

Other financial assets

     —          —          798,819        —          798,819  

Trade and other receivables

     —          —          10,461,822        —          10,461,822  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     3,336,521        —          14,512,183        134,873        17,983,577  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

              

Non-current financial assets

              

Non-current financial assets at fair value through profit or loss

     527,717        —          —          —          527,717  

Non-current financial assets at fair value through other comprehensive income

     —          502,829        —          —          502,829  

Non-current financial assets at amortized costs

     —          —          10,236        —          10,236  

Non-current derivative assets

     538,342        —          —          190,079        728,421  

Other financial assets

     —          —          1,567,632        —          1,567,632  

Trade and other receivables

     —          —          2,153,080        —          2,153,080  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     1,066,059        502,829        3,730,948        190,079        5,489,915  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   4,402,580        502,829        18,243,131        324,952        23,473,492  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

18


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(2)

Classification of financial liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Financial liabilities at
fair value through
profit or loss
     Financial liabilities
recognized at
amortized cost
     Derivative liabilities
(applying hedge
accounting)
     Total  

Current liabilities

           

Borrowings

   —          10,776,097        —          10,776,097  

Debt securities

     —          11,281,681        —          11,281,681  

Derivative liabilities

     19,550        —          —          19,550  

Trade and other payables

     —          10,580,959        —          10,580,959  
  

 

 

    

 

 

    

 

 

    

 

 

 
     19,550        32,638,737        —          32,658,287  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current liabilities

           

Borrowings

     —          3,031,995        —          3,031,995  

Debt securities

     —          101,231,134        —          101,231,134  

Derivative liabilities

     273,521        —          7,721        281,242  

Trade and other payables

     —          5,551,639        —          5,551,639  
  

 

 

    

 

 

    

 

 

    

 

 

 
     273,521        109,814,768        7,721        110,096,010  
  

 

 

    

 

 

    

 

 

    

 

 

 
   293,071        142,453,505        7,721        142,754,297  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Financial liabilities at
fair value through
profit or loss
     Financial liabilities
recognized at
amortized cost
     Derivative liabilities
(applying hedge
accounting)
     Total  

Current liabilities

           

Borrowings

   —          12,457,853        —          12,457,853  

Debt securities

     —          10,201,149        —          10,201,149  

Derivative liabilities

     44,994        —          —          44,994  

Trade and other payables

     —          11,983,549        —          11,983,549  
  

 

 

    

 

 

    

 

 

    

 

 

 
     44,994        34,642,551        —          34,687,545  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current liabilities

           

Borrowings

     —          2,962,323        —          2,962,323  

Debt securities

     —          94,984,040        —          94,984,040  

Derivative liabilities

     362,252        —          25,505        387,757  

Trade and other payables

     —          5,638,914        —          5,638,914  
  

 

 

    

 

 

    

 

 

    

 

 

 
     362,252        103,585,277        25,505        103,973,034  
  

 

 

    

 

 

    

 

 

    

 

 

 
   407,246        138,227,828        25,505        138,660,579  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

19


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(3)

Classification of comprehensive income (loss) from financial instruments for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won         March 31, 2023     March 31, 2022  

Cash and cash equivalents

   Interest income    23,050       6,744  
   Gain on foreign currency transactions and translations      9,685       10,921  

Financial assets at fair value through profit or loss

   Interest income      15,253       4,237  
   Dividends income      150       253  
   Gain (loss) on valuation of financial assets      16,721       (9,526
   Gain on disposal of financial assets      2,276       706  

Financial assets at fair value through other comprehensive income

   Dividends income      39       8,202  

Financial assets at amortized cost

   Interest income      265       255  
   Loss on foreign currency transactions and translations      (837     (299

Loans

   Interest income      11,947       5,286  
   Gain on foreign currency transactions and translations      209       194  

Trade and other receivables

   Interest income      38,851       39,518  
   Gain (loss) on foreign currency transactions and translations      22,098       (2,698

Short-term financial instruments

   Interest income      7,436       2,001  
   Gain on foreign currency transactions and translations      —         3,513  

Long-term financial instruments

   Interest income      5,894       3,119  
   Gain on foreign currency transactions and translations      1       —    

Other financial assets

   Interest income      250       109  

Financial liabilities carried at amortized cost

   Interest expense of borrowings and debt securities      846,828       399,926  
   Loss on repayment of financial liabilities      —         (15
   Interest expense of trade and other payables      27,493       46,828  
   Interest expense of others      173,757       117,157  
   Other finance income      682       202  
   Other finance expenses      502       633  
   Loss on foreign currency transactions and translations      (520,803     (299,541

Derivative assets (trading)

   Gain on valuation of derivatives      215,500       29,366  
   Gain on transaction of derivatives      25,392       15,490  

Derivatives (applying hedge accounting)

   Gain on valuation of derivatives (profit or loss)      152,352       90,211  
   Gain (loss) on valuation of derivatives (equity, before tax)      6,751       (72,093
   Gain on transaction of derivatives      2,396       9,325  

 

20


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

6.

Restricted Deposits

Restricted deposits as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won         March 31, 2023      December 31, 2022  

Cash and cash equivalents

   Escrow accounts    11,717        2,912  
   Deposits for government project and others      27,937        30,586  
   Collateral provided for borrowings      204,032        250,346  
   Collateral provided for lawsuit      57        57  
   Deposits for transmission regional support program      12,744        8,626  
   Deposits for other business purposes      3,460        3,825  

Short-term financial instruments

  

Restriction on withdrawal related to ‘win-win growth

program’ for small and medium enterprises and others

     102,500        101,500  
   Collateral provided for borrowings      18,710        1,000  

Non-current financial assets at fair value through profit or loss

   Decommissioning costs of nuclear power plants      404,192        386,220  

Long-term financial instruments

   Escrow accounts      —          1,603  
   Guarantee deposits for banking accounts at oversea branches      19        18  
   Collateral provided for borrowings      21,745        21,745  
   Decommissioning costs of nuclear power plants      505,000        497,609  

Other non-current assets

   Deposits for other business purposes      4,355        4,355  
     

 

 

    

 

 

 
      1,316,468        1,310,402  
     

 

 

    

 

 

 

 

7.

Cash and Cash Equivalents

Cash and cash equivalents as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Cash

   6,808        21,113  

Other demand deposits

     2,373,736        1,906,248  

Short-term deposits classified as cash equivalents

     299,211        1,063,290  

Short-term investments classified as cash equivalents

     415,813        244,129  
  

 

 

    

 

 

 
   3,095,568        3,234,780  
  

 

 

    

 

 

 

 

21


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

8.

Trade and Other Receivables

 

(1)

Trade and other receivables as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Gross
amount
     Allowance for
doubtful accounts
     Present value
discount
     Book
value
 

Current assets

           

Trade receivables

   8,653,373        (193,790      —          8,459,583  

Other receivables

     990,930        (55,725      (3,526      931,679  
  

 

 

    

 

 

    

 

 

    

 

 

 
     9,644,303        (249,515      (3,526      9,391,262  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

           

Trade receivables

     200,191        (2,097      —          198,094  

Other receivables

     2,120,657        (64,924      (13,095      2,042,638  
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,320,848        (67,021      (13,095      2,240,732  
  

 

 

    

 

 

    

 

 

    

 

 

 
   11,965,151        (316,536      (16,621      11,631,994  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Gross
amount
     Allowance for
doubtful accounts
     Present value
discount
     Book
value
 

Current assets

           

Trade receivables

   9,700,880        (196,829      —          9,504,051  

Other receivables

     1,004,528        (44,388      (2,369      957,771  
  

 

 

    

 

 

    

 

 

    

 

 

 
     10,705,408        (241,217      (2,369      10,461,822  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

           

Trade receivables

     197,955        (2,171      —          195,784  

Other receivables

     2,033,705        (65,065      (11,344      1,957,296  
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,231,660        (67,236      (11,344      2,153,080  
  

 

 

    

 

 

    

 

 

    

 

 

 
   12,937,068        (308,453      (13,713      12,614,902  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

22


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

8.

Trade and Other Receivables, Continued

 

(2)

Other receivables as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Gross
amount
     Allowance for
doubtful accounts
     Present value
discount
     Book
value
 

Current assets

           

Non-trade receivables

   349,155        (52,567      (85      296,503  

Accrued income

     104,138        —          —          104,138  

Deposits

     374,566        —          (3,441      371,125  

Finance lease receivables (*1)

     70,147        (1,865      —          68,282  

Others

     92,924        (1,293      —          91,631  
  

 

 

    

 

 

    

 

 

    

 

 

 
     990,930        (55,725      (3,526      931,679  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

           

Non-trade receivables

     201,751        (51,489      (214      150,048  

Accrued income

     2,152        —          —          2,152  

Deposits

     455,171        —          (12,881      442,290  

Finance lease receivables (*2)

     1,193,027        (2,584      —          1,190,443  

Others

     268,556        (10,851      —          257,705  
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,120,657        (64,924      (13,095      2,042,638  
  

 

 

    

 

 

    

 

 

    

 

 

 
   3,111,587        (120,649      (16,621      2,974,317  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 117,724 million.

 

(*2)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 1,025,970 million.

 

In millions of won    December 31, 2022  
     Gross
amount
     Allowance for
doubtful accounts
     Present value
discount
     Book
value
 

Current assets

           

Non-trade receivables

   459,245        (41,293      (21      417,931  

Accrued income

     109,267        —          —          109,267  

Deposits

     289,580        —          (2,348      287,232  

Finance lease receivables (*1)

     67,583        (1,802      —          65,781  

Others

     78,853        (1,293      —          77,560  
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,004,528        (44,388      (2,369      957,771  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

           

Non-trade receivables

     140,128        (52,696      (182      87,250  

Accrued income

     2,004        —          —          2,004  

Deposits

     459,861        —          (11,162      448,699  

Finance lease receivables (*2)

     1,171,807        (2,703      —          1,169,104  

Others

     259,905        (9,666      —          250,239  
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,033,705        (65,065      (11,344      1,957,296  
  

 

 

    

 

 

    

 

 

    

 

 

 
   3,038,233        (109,453      (13,713      2,915,067  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 114,347 million.

(*2)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 1,024,927 million.

 

(3)

Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. However once trade receivables are overdue, the Group imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Group holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with delinquent payments.

 

23


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

8.

Trade and Other Receivables, Continued

 

(4)

Aging analysis of trade receivables as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023     December 31, 2022  

Trade receivables: (not overdue)

   8,436,853       9,509,775  
  

 

 

   

 

 

 

Trade receivables: (impairment reviewed)

     416,711       389,060  
  

 

 

   

 

 

 

Less than 60 days

     5,331       5,592  

60 ~ 90 days

     70,752       36,389  

90 ~ 120 days

     26,793       31,442  

120 days ~ 1 year

     112,102       99,655  

Over 1 year

     201,733       215,982  
  

 

 

   

 

 

 
     8,853,564       9,898,835  

Less: allowance for doubtful accounts

     (195,887     (199,000
  

 

 

   

 

 

 
   8,657,677       9,699,835  
  

 

 

   

 

 

 

At the end of each reporting period, the Group assesses whether the credit to trade receivables is impaired. The Group recognizes loss allowances for trade receivables individually when there is any objective evidence that other receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Group recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

 

(5)

Changes in the allowance for doubtful accounts for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Trade
receivables
     Other
receivables
     Trade
receivables
     Other
receivables
 

Beginning balance

   199,000        109,453        205,339        82,710  

Bad debts expense

     1,097        2,618        27,078        4,220  

Write-off

     (2,361      (261      (26,319      (1,103

Reversal

     (1,918      —          (3,444      (37

Others

     69        8,839        (3,654      23,663  
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

   195,887        120,649        199,000        109,453  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

24


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

9.

Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Financial assets at fair value through profit or loss

           

Beneficiary Certificate

   94,941        117,217        294        121,406  

Cooperative

     —          6,038        —          6,329  

Others (*)

     1,070,842        218,588        3,181,497        173,386  
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,165,783        341,843        3,181,791        301,121  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial assets designated as at fair value through profit or loss

           

Debt with embedded derivatives

     —          211,379        —          226,596  
  

 

 

    

 

 

    

 

 

    

 

 

 
   1,165,783        553,222        3,181,791        527,717  
  

 

 

    

 

 

    

 

 

    

 

 

 

(*) ‘Others’ include MMT which consist of government bond, RP, CP and others.

 

25


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income

 

(1)

Changes in financial assets at fair value through other comprehensive income for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Acquisition      Disposal     Valuation     Others      Ending
balance
 

Equity securities

               

Listed

   300,057        431        —         (34,378     —          266,110  

Unlisted

     202,243        —          (3     (63     103        202,280  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 
     502,300        431        (3     (34,441     103        468,390  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Debt securities

               

Corporate bond

     529        —          —         —         —          529  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 
     502,829        431        (3     (34,441     103        468,919  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Current financial assets at fair value through other comprehensive income

   —          —          —         —         —          —    

Non-current financial assets at fair value through other comprehensive income

     502,829        431        (3     (34,441     103        468,919  

 

In millions of won    December 31, 2022  
     Beginning
balance
     Acquisition      Disposal      Valuation      Others     Ending
balance
 

Equity securities

                

Listed

   273,826        —          —          28,585        (2,354     300,057  

Unlisted

     160,790        9,451        —          33,237        (1,235     202,243  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     434,616        9,451        —          61,822        (3,589     502,300  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Debt securities

                

Corporate bond

     491        —          —          38        —         529  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     435,107        9,451        —          61,860        (3,589     502,829  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Current financial assets at fair value through other comprehensive income

   —          —          —          —          —         —    

Non-current financial assets at fair value through other comprehensive income

     435,107        9,451        —          61,860        (3,589     502,829  

 

26


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2023 and December 31, 2022 are as follows:

 

 

In millions of won    March 31, 2023  
     Shares      Ownership     Acquisition cost      Book value      Fair value  

Listed

             

Korea District Heating Corp.

     2,264,068        19.55   173,201        60,903        60,903  

KG Mobility Co., Ltd. (formerly, Ssangyong Motor Co., Ltd.)

     12,205        0.01     428        107        107  

SM Korea Line Corp.

     180        0.00     1        —          —    

Namkwang Engineering & Construction Co., Ltd.

     121        0.00     15        —          —    

Bumyang Construction Co., Ltd.

     35        0.00     2        —          —    

ELCOMTEC Co., Ltd.

     32,875        0.04     217        57        57  

PAN Ocean Co., Ltd.

     1,492        0.00     14        9        9  

STX Heavy Industries Co., Ltd.

     68,874        0.24     537        417        417  

Codes Combine Co., Ltd.

     291        0.00     1        1        1  

PT Adaro Energy Tbk.

     480,000,000        1.50     65,028        120,547        120,547  

Denison Mines Corp.

     58,284,000        7.09     84,135        82,615        82,615  

Fission Uranium Corp.

     100,000        0.01     41        66        66  

SangSangin Industry Co., Ltd.

     5,831        0.01     38        2        2  

Vitzrosys Co., Ltd.

     399        0.00     2        —          —    

EMnI Co., Ltd.

     628        0.00     25        3        3  

Vissem electronics, Co., Ltd.

     229        0.00     11        1        1  

KC Industry Co., Ltd.

     139        0.00     6        —          —    

Ihsung CNI Co., Ltd.

     142,860        4.81     1,500        1,371        1,371  

Aone Alform Co., Ltd.

     2,672        0.04     19        11        11  

BDI Co., Ltd. (*4)

     6,390,478        32.53     31,952        —          —    
       

 

 

    

 

 

    

 

 

 
          357,173        266,110        266,110  
       

 

 

    

 

 

    

 

 

 

Unlisted (*1)

             

Intellectual Discovery Co., Ltd.

     200,000        6.00     5,000        954        954  

Smart Power Co., Ltd.

     133,333        4.14     200        200        200  

Set Holding (*2)

     1,100,220        2.50     229,255        163,580        163,580  

SGC Greenpower Co., Ltd.

     580,000        5.00     2,900        7,856        7,856  

Le Soleil KHNP LLC

     137,600        19.00     1,376        1,376        1,376  

Ihsung CNI Co., Ltd.

     127,660        4.30     1,500        2,016        2,016  

H Robotics Co., Ltd.

     903,601        8.05     4,000        5,638        5,638  

Good Tcells Co., Ltd.

     11,364        0.34     500        347        347  

IPS Bio Co., Ltd.

     1,975        3.13     1,000        843        843  

Nine B Co., Ltd.

     5,000        4.96     1,000        1,000        1,000  

Orano Expansion

     5,742,405        4.72     —          —          —    

Common Computer Co., Ltd.

     3,856        1.87     1,000        1,000        1,000  

Fine Powerex Co., Ltd.

     72,633        4.92     1,500        1,500        1,500  

Electric Contractors’ Financial Cooperative Co., Ltd.

     —          —         39        39        39  

Information&Communication Financial Cooperative Co., Ltd.

     —          —         15        15        15  

Agencore Co., Ltd.

     104,350        5.67     1,200        1,200        1,200  

SamHong Machinery Co., Ltd.

     476,192        19.23     5,000        5,000        5,000  

Aloha Factory Co., Ltd.

     2,970        3.61     1,000        1,000        1,000  

Dailyshot Co., Ltd.

     339        1.85     1,001        1,001        1,001  

Mediquitous Co., Ltd.

     5,080        0.69     1,250        1,250        1,250  

Hwan Young Steel Co., Ltd. and others (*3)

     —          —         10,352        6,465        6,465  
       

 

 

    

 

 

    

 

 

 
          269,088        202,280        202,280  
       

 

 

    

 

 

    

 

 

 

Debt securities

             

Aron Flying Ship Co., Ltd. (*1)

          500        529        529  
       

 

 

    

 

 

    

 

 

 
        626,761        468,919        468,919  
       

 

 

    

 

 

    

 

 

 

 

27


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

(*1)

The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2)

The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the three-month period ended March 31, 2023.

(*3)

Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 403 companies including Hwan Young Steel Co., Ltd.

(*4)

The Group acquired shares in the entity through conversion of investments performed in corporate rehabilitation procedures, and classified the investment in the entity as financial assets at fair value through other comprehensive income as the Group does not hold a significant influence over the entity until the corporate rehabilitation procedures are completed.

 

28


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won    December 31, 2022  
     Shares      Ownership     Acquisition cost      Book value      Fair value  

Listed

             

Korea District Heating Corp.

     2,264,068        19.55   173,201        64,526        64,526  

KG Mobility Co., Ltd. (formerly, Ssangyong Motor Co., Ltd.)

     12,205        0.03     428        107        107  

SM Korea Line Corp.

     180        0.00     1        —          —    

Namkwang Engineering & Construction Co., Ltd.

     121        0.00     15        —          —    

Bumyang Construction Co., Ltd.

     35        0.00     2        —          —    

ELCOMTEC Co., Ltd.

     32,875        0.04     217        34        34  

PAN Ocean Co., Ltd.

     1,492        0.00     14        9        9  

STX Heavy Industries Co., Ltd.

     7,419        0.03     107        54        54  

Codes Combine Co., Ltd.

     291        0.00     1        1        1  

PT Adaro Energy Tbk.

     480,000,000        1.50     65,028        149,503        149,503  

Denison Mines Corp.

     58,284,000        7.09     84,134        84,502        84,502  

Fission Uranium Corp.

     100,000        1.73     41        75        75  

SangSangin Industry Co., Ltd.

     5,831        0.01     38        3        3  

Vitzrosys Co., Ltd.

     399        0.00     2        —          —    

EMnI Co., Ltd.

     628        0.00     25        3        3  

Vissem electronics, Co., Ltd.

     229        0.00     11        1        1  

KC Industry Co., Ltd.

     139        0.00     6        —          —    

Ihsung CNI Co., Ltd.

     142,860        4.81     1,500        1,229        1,229  

Aone Alform Co., Ltd.

     2,672        0.04     19        10        10  
       

 

 

    

 

 

    

 

 

 
          324,790        300,057        300,057  
       

 

 

    

 

 

    

 

 

 

Unlisted (*1)

             

Intellectual Discovery Co., Ltd.

     200,000        6.00     5,000        954        954  

Smart Power Co., Ltd.

     133,333        4.14     200        200        200  

Set Holding (*2)

     1,100,220        2.50     229,255        163,580        163,580  

SGC Greenpower Co., Ltd.

     580,000        5.00     2,900        7,856        7,856  

Le Soleil KHNP LLC

     137,600        19.00     1,376        1,376        1,376  

Ihsung CNI Co., Ltd.

     127,660        4.30     1,500        2,016        2,016  

H Robotics Co., Ltd.

     903,601        8.05     4,000        5,638        5,638  

Good Tcells Co., Ltd.

     11,364        0.34     500        347        347  

IPS Bio Co., Ltd.

     1,975        3.13     1,000        843        843  

Nine B Co., Ltd.

     5,000        4.96     1,000        1,000        1,000  

Orano Expansion

     5,742,405        4.72     —          —          —    

Common Computer Co., Ltd.

     3,856        1.87     1,000        1,000        1,000  

Fine Powerex Co., Ltd.

     72,633        4.92     1,500        1,500        1,500  

Electric Contractors’ Financial Cooperative Co., Ltd.

     —          —         39        39        39  

Information&Communication Financial Cooperative Co., Ltd.

     —          —         15        15        15  

Agencore Co., Ltd.

     104,350        5.67     1,200        1,200        1,200  

SamHong Machinery Co., Ltd.

     476,192        19.23     5,000        5,000        5,000  

Aloha Factory Co., Ltd.

     2,970        3.61     1,000        1,000        1,000  

Dailyshot Co., Ltd.

     339        1.85     1,001        1,001        1,001  

Mediquitous Co., Ltd.

     5,080        0.69     1,250        1,250        1,250  

Hwan Young Steel Co., Ltd. and others (*3)

     —          —         10,329        6,428        6,428  
       

 

 

    

 

 

    

 

 

 
          269,065        202,243        202,243  
       

 

 

    

 

 

    

 

 

 

Debt securities

             

Aron Flying Ship Co., Ltd. (*1)

          500        529        529  
       

 

 

    

 

 

    

 

 

 
        594,355        502,829        502,829  
       

 

 

    

 

 

    

 

 

 

 

29


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

(*1)

The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2)

The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2022.

(*3)

Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 404 companies including Hwan Young Steel Co., Ltd.

 

30


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

11.

Financial Assets at Amortized Cost

Financial assets at amortized cost as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Financial assets
at amortized cost
     Book
value
 

Government bonds

   1,772        1,772  

Others

     25,078        25,078  
  

 

 

    

 

 

 
   26,850        26,850  
  

 

 

    

 

 

 

Current

   16,604        16,604  

Non-current

     10,246        10,246  
     
In millions of won    December 31, 2022  
     Financial assets
at amortized cost
     Book
value
 

Government bonds

   1,920        1,920  

Others

     25,078        25,078  
  

 

 

    

 

 

 
   26,998        26,998  
  

 

 

    

 

 

 

Current

   16,762        16,762  

Non-current

     10,236        10,236  

 

31


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

12.

Derivatives

 

(1)

Derivatives as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Derivative assets

           

Currency forward

   5,771        21,033        648        17,432  

Currency swap

     345,295        781,741        236,470        589,300  

Interest rate swap

     48,652        47,752        52,485        81,188  

Others (*3)

     —          41,079        —          40,501  
  

 

 

    

 

 

    

 

 

    

 

 

 
   399,718        891,605        289,603        728,421  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative liabilities

           

Currency forward

   845        —          32,660        —    

Currency swap

     5,819        199,986        6,319        328,995  

Interest rate swap

     —          31,811        —          2,735  

Others (*1,2,3)

     12,886        49,445        6,015        56,027  
  

 

 

    

 

 

    

 

 

    

 

 

 
   19,550        281,242        44,994        387,757  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

The Group has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’ (See note 46).

(*2)

The Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and 4 other third party investors, and recognized its fair value as other derivative liabilities.

(*3)

The Group has an obligation to purchase the shares of Hyundai Green Power Co., Ltd., an associate of the Group from financial investors, and the fair value of the obligation is recorded in ‘Others’.

 

32


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

12. Derivatives, Continued

 

(2)

Currency forward contracts which are not designated as hedging instruments as of March 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies except contract exchange rate information  

Counterparty

   Contract date      Maturity
date
     Contract amounts      Contract
exchange rate
(in won)
 
   Pay      Receive  

Kookmin Bank

     2023.03.16        2023.04.11      3,687        USD 2,814      1,310.40  

Shinhan Bank

     2023.03.07        2023.04.12        362        USD 279        1,296.80  

Morgan Stanley

     2023.03.02        2023.04.04        15,692        USD 12,000        1,307.70  

JP Morgan

     2023.03.15        2023.04.06        12,968        USD 10,000        1,296.80  

Standard Chartered

     2023.03.13        2023.04.07        19,469        USD 15,000        1,297.90  

JP Morgan

     2023.03.03        2023.04.10        16,940        USD 13,000        1,303.10  

Hana Bank

     2023.03.06        2023.04.11        12,952        USD 10,000        1,295.20  

Nonghyup Bank

     2023.03.13        2023.04.12        19,608        USD 15,000        1,307.20  

Woori Bank

     2023.03.13        2023.04.13        19,607        USD 15,000        1,307.10  

Kookmin Bank

     2023.03.15        2023.04.17        19,492        USD 15,000        1,299.40  

Morgan Stanley

     2023.03.15        2023.04.18        10,415        USD 8,000        1,301.80  

Hana Bank

     2023.03.20        2023.04.21        10,401        USD 8,000        1,300.10  

Nonghyup Bank

     2023.03.21        2023.04.24        11,735        USD 9,000        1,303.90  

Standard Chartered

     2023.03.21        2023.04.25        14,345        USD 11,000        1,304.10  

Mizuho Bank

     2023.03.23        2023.04.26        11,618        USD 9,000        1,290.90  

Morgan Stanley

     2023.03.23        2023.04.28        19,382        USD 15,000        1,292.10  

Kookmin Bank

     2023.03.23        2023.05.02        20,430        USD 16,000        1,276.90  

JP Morgan

     2023.03.30        2023.04.14        13,001        USD 10,000        1,300.10  

Busan Bank

     2023.03.30        2023.04.20        9,085        USD 7,000        1,297.80  

Hana Bank

     2023.02.28        2023.04.05        11,873        USD 9,000        1,319.20  

JP Morgan

     2023.03.23        2023.04.07        77,202        USD 60,000        1,286.70  

MUFG

     2023.03.23        2023.04.05        38,603        USD 30,000        1,286.78  

Korea Development Bank

     2023.03.27        2023.04.05        64,978        USD 50,000        1,299.55  

SMBC

     2023.03.30        2023.04.05        13,040        USD 10,000        1,304.00  

Standard Chartered

     2023.03.15        2023.04.11        25,958        USD 20,000        1,297.90  

Standard Chartered

     2023.03.17        2023.04.13        12,991        USD 10,000        1,299.10  

MUFG

     2023.03.23        2023.04.18        12,966        USD 10,000        1,296.55  

Nonghyup Bank

     2023.03.14        2023.04.04        13,058        USD 10,000        1,305.80  

Woori Bank

     2023.03.30        2023.04.20        12,972        USD 10,000        1,297.15  

JP Morgan

     2023.03.15        2023.04.05        26,080        USD 20,000        1,304.00  

JP Morgan

     2023.03.23        2023.04.25        12,795        USD 10,000        1,279.50  

SMBC

     2023.03.23        2023.04.27        38,482        USD 30,000        1,282.72  

HSBC

     2023.03.13        2023.04.05        16,525        USD 12,647        1,306.58  

JP Morgan

     2023.03.23        2023.04.24        25,930        USD 20,000        1,296.50  

Mizuho Bank

     2023.03.23        2023.04.24        7,736        USD 6,000        1,289.25  

HSBC

     2023.03.23        2023.04.27        9,294        USD 7,275        1,277.47  

HSBC

     2020.10.19        2024.10.29        140,913        USD 125,000        1,127.30  

HSBC

     2023.03.10        2023.05.09        3,757        USD 2,842        1,321.70  

Shinhan Bank

     2023.03.10        2023.05.09        13,209        USD 10,000        1,320.85  

Woori Bank

     2022.12.08        2023.05.12        13,145        USD 10,000        1,314.50  

HSBC

     2023.02.23        2023.05.12        12,632        USD 9,711        1,300.80  

HSBC

     2022.12.12        2023.06.09        19,482        USD 15,000        1,298.80  

Busan Bank

     2022.12.12        2023.06.09        19,479        USD 15,000        1,298.60  

Shinhan Bank

     2022.12.15        2023.06.09        9,814        USD 7,589        1,293.10  

MUFG

     2023.03.30        2023.06.09        6,469        USD 5,000        1,293.70  

Standard Chartered

     2023.03.23        2023.06.13        12,903        USD 10,000        1,290.30  

HSBC

     2023.03.23        2023.06.13        12,866        USD 10,000        1,286.60  

HSBC

     2023.03.23        2023.06.13        12,843        USD 10,000        1,284.30  

Shinhan Bank

     2023.03.23        2023.06.13        12,755        USD 10,000        1,275.50  

Shinhan Bank

     2023.03.23        2023.06.13        6,376        USD 5,000        1,275.10  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

12.

Derivatives, Continued

 

(3)

Currency swap contracts which are not designated as hedging instruments as of March 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies except contract exchange rate information      

Counterparty

   Contract year      Contract amount      Contract interest rate   Contract
exchange rate
(in won, USD)
 
   Pay      Receive      Pay   Receive

Standard Chartered

     2014~2029      102,470        USD 100,000      3.14%   3.57%   1,024.70  

Societe Generale

     2014~2024        105,017        USD 100,000      4.92%   5.13%     1,050.17  

Hana Bank

     2015~2024        107,970        USD 100,000      4.75%   5.13%     1,079.70  

Credit Agricole

     2015~2024        94,219        USD 86,920      4.85%   5.13%     1,083.97  

Woori Bank

     2019~2027        21,708        USD 19,417      5.04%   6.75%     1,118.00  

Woori Bank

     2019~2024        296,000        USD 250,000      1.21%   2.50%     1,184.00  

Korea Development Bank

     2019~2024        177,600        USD 150,000      1.24%   2.50%     1,184.00  

Hana Bank

     2019~2024        118,400        USD 100,000      1.24%   2.50%     1,184.00  

Woori Bank

     2020~2025        241,320        USD 200,000      0.54%   1.13%     1,206.60  

Korea Development Bank

     2020~2025        241,320        USD 200,000      0.54%   1.13%     1,206.60  

Kookmin Bank

     2020~2025        120,660        USD 100,000      0.54%   1.13%     1,206.60  

Kookmin Bank

     2020~2026        76,355        USD 70,445      5.83%   6.00%     1,083.90  

Woori Bank

     2021~2026        118,170        USD 100,000      1.11%   1.13%     1,181.70  

Korea Development Bank

     2021~2026        118,170        USD 100,000      1.11%   1.13%     1,181.70  

Hana Bank

     2021~2026        118,170        USD 100,000      1.11%   1.13%     1,181.70  

Hana Bank

     2022~2025        385,800        USD 300,000      3.11%   3.63%     1,286.00  

Woori Bank

     2022~2025        257,200        USD 200,000      3.12%   3.63%     1,286.00  

JP Morgan

     2022~2027        128,600        USD 100,000      3.56%   4.00%     1,286.00  

Woori Bank

     2022~2027        128,600        USD 100,000      3.56%   4.00%     1,286.00  

Kookmin Bank

     2022~2027        128,600        USD 100,000      3.56%   4.00%     1,286.00  

Korea Development Bank

     2022~2026        283,820        USD 200,000      4.67%   5.38%     1,419.10  

Hana Bank

     2022~2026        141,910        USD 100,000      4.68%   5.38%     1,419.10  

JP Morgan

     2022~2026        141,910        USD 100,000      4.69%   5.38%     1,419.10  

Woori Bank

     2022~2026        141,910        USD 100,000      4.69%   5.38%     1,419.10  

Korea Development Bank

     2022~2028        283,820        USD 200,000      5.12%   5.50%     1,419.10  

Woori Bank

     2022~2028        141,910        USD 100,000      5.13%   5.50%     1,419.10  

Nomura

     2015~2025        111,190        USD 100,000      2.60%   3.25%     1,111.90  

Korea Development Bank

     2015~2025        111,190        USD 100,000      2.62%   3.25%     1,111.90  

Woori Bank

     2015~2025        55,595        USD 50,000      2.62%   3.25%     1,111.90  

Hana Bank

     2015~2025        55,595        USD 50,000      2.62%   3.25%     1,111.90  

Woori Bank

     2017~2027        111,610        USD 100,000      2.25%   3.13%     1,116.10  

Korea Development Bank

     2017~2027        111,610        USD 100,000      2.31%   3.13%     1,116.10  

Hana Bank

     2017~2027        111,610        USD 100,000      2.31%   3.13%     1,116.10  

Korea Development Bank

     2018~2028        108,600        HKD 800,000      2.69%   3.35%     135.75  

Shinhan Bank

     2018~2028        115,387        HKD 850,000      2.66%   3.35%     135.75  

Korea Development Bank

     2018~2023        170,280        USD 150,000      2.15%   3.75%     1,135.20  

Woori Bank

     2018~2023        170,280        USD 150,000      2.18%   3.75%     1,135.20  

Hana Bank

     2018~2023        113,520        USD 100,000      2.17%   3.75%     1,135.20  

Shinhan Bank

     2018~2023        227,040        USD 200,000      2.17%   3.75%     1,135.20  

Korea Citi Bank

     2019~2024        239,956        CHF 200,000      1.44%   0.00%     1,199.78  

Korea Development Bank

     2019~2027        119,978        CHF 100,000      1.43%   0.05%     1,199.78  

Woori Bank

     2021~2026        222,800        USD 200,000      0.93%   1.25%     1,114.00  

Shinhan Bank

     2021~2026        111,400        USD 100,000      0.92%   1.25%     1,114.00  

Korea Development Bank

     2021~2026        111,400        USD 100,000      0.93%   1.25%     1,114.00  

Nonghyup Bank

     2021~2026        111,400        USD 100,000      0.93%   1.25%     1,114.00  

Woori Bank

     2022~2027        262,000        USD 200,000      3.62%   4.25%     1,310.00  

Export-Import Bank of Korea

     2022~2027        131,000        USD 100,000      3.63%   4.25%     1,310.00  

Kookmin Bank

     2022~2027        131,000        USD 100,000      3.62%   4.25%     1,310.00  

Hana Bank

     2022~2027        131,000        USD 100,000      3.61%   4.25%     1,310.00  

Korea Development Bank

     2022~2027        262,000        USD 200,000      3.63%   4.25%     1,310.00  

Export-Import Bank of Korea

     2022~2032        349,829        HKD 1,935,000      4.87%   5.16%     180.79  

JP Morgan

     2022~2032        75,194        HKD 415,000      5.00%   5.16%     181.19  

HSBC

     2019~2024        USD 205,500        AUD 300,000      3M Libor + 0.78%   3M BBSW + 0.97%     USD 0.69  

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

12.

Derivatives, Continued

 

(4)

Currency swap contracts which are designated as hedging instruments as of March 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies except contract exchange rate information  

Counterparty

   Contract year      Contract amount      Contract interest rate   Contract
exchange rate
(in won)
 
   Pay      Receive      Pay   Receive

Kookmin Bank

     2020~2025      118,780        USD 100,000      1.29%   2.13%   1,187.80  

Shinhan Bank

     2020~2025        118,780        USD 100,000      1.29%   2.13%     1,187.80  

Hana Bank

     2020~2025        118,780        USD 100,000      1.29%   2.13%     1,187.80  

Korea Development Bank

     2020~2026        118,910        USD 100,000      0.61%   1.00%     1,189.10  

Hana Bank

     2020~2026        118,910        USD 100,000      0.61%   1.00%     1,189.10  

Woori Bank

     2020~2026        118,910        USD 100,000      0.62%   1.00%     1,189.10  

Nomura

     2017~2037        52,457        EUR 40,000      2.60%   1.70%     1,311.42  

Nomura

     2017~2037        59,423        SEK 450,000      2.62%   2.36%     132.05  

Kookmin Bank

     2021~2026        114,230        USD 100,000      1.27%   1.25%     1,142.30  

Korea Development Bank

     2021~2026        114,230        USD 100,000      1.27%   1.25%     1,142.30  

Hana Bank

     2021~2026        114,230        USD 100,000      1.27%   1.25%     1,142.30  

Korea Development Bank

     2022~2027        123,710        USD 100,000      3.41%   3.63%     1,237.10  

Woori Bank

     2022~2027        123,710        USD 100,000      3.41%   3.63%     1,237.10  

JP Morgan

     2022~2027        123,710        USD 100,000      3.41%   3.63%     1,237.10  

Korea Development Bank

     2018~2023        320,880        USD 300,000      2.03%   3.75%     1,069.60  

BNP Paribas

     2019~2024        111,841        CHF 100,000      1.78%   0.13%     1,118.41  

Kookmin Bank

     2019~2024        111,841        CHF 100,000      1.78%   0.13%     1,118.41  

Korea Development Bank

     2022~2025        128,560        USD 100,000      3.37%   4.13%     1,285.60  

Woori Bank

     2022~2025        128,560        USD 100,000      3.37%   4.13%     1,285.60  

Kookmin Bank

     2022~2025        128,560        USD 100,000      3.37%   4.13%     1,285.60  

Woori Bank

     2021~2026        220,600        USD 200,000      0.47%   0.75%     1,103.00  

Shinhan Bank

     2021~2026        220,600        USD 200,000      0.47%   0.75%     1,103.00  

Hana Bank

     2021~2026        55,150        USD 50,000      0.48%   0.75%     1,103.00  

Korea Development Bank

     2018~2023        169,335        USD 150,000      2.26%   3.88%     1,128.90  

Woori Bank

     2018~2023        169,335        USD 150,000      2.26%   3.88%     1,128.90  

Credit Agricole

     2018~2023        112,890        USD 100,000      2.26%   3.88%     1,128.90  

Hana Bank

     2018~2023        56,445        USD 50,000      2.26%   3.88%     1,128.90  

Kookmin Bank

     2018~2023        56,445        USD 50,000      2.26%   3.88%     1,128.90  

Woori Bank

     2020~2025        245,560        USD 200,000      0.93%   1.75%     1,227.80  

Hana Bank

     2020~2025        245,560        USD 200,000      0.93%   1.75%     1,227.80  

Korea Development Bank

     2020~2025        122,780        USD 100,000      0.93%   1.75%     1,227.80  

JP Morgan

     2022~2025        126,180        USD 100,000      2.80%   3.60%     1,261.80  

Hana Bank

     2022~2025        126,180        USD 100,000      2.80%   3.60%     1,261.80  

Korea Development Bank

     2022~2025        252,360        USD 200,000      2.83%   3.60%     1,261.80  

Woori Bank

     2022~2025        126,180        USD 100,000      2.85%   3.60%     1,261.80  

 

35


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

12.

Derivatives, Continued

 

(5)

Interest rate swap contracts which are not designated as hedging instruments as of March 31, 2023 are as follows:

 

In millions of won and thousands of Australian dollars                  Contract interest rate per annum

Counterparty

   Contract year      Contract
amount
     Pay    Receive

Nomura (*1)

     2018~2038        30,000      2.56%    3.75%

Hana Bank

     2018~2023        200,000      2.15%    3M CD + 0.19%

Hana Bank

     2018~2023        200,000      2.17%    3M CD + 0.19%

Hana Bank

     2018~2023        150,000      2.03%    3M CD + 0.21%

Hana Bank

     2019~2024        200,000      1.87%    3M CD + 0.13%

Shinhan Bank

     2021~2025        100,000      2.32%    3M CD + 0.43%

Hana Bank

     2022~2027        200,000      3.02%    3M CD + 0.61%

Hana Bank

     2022~2027        200,000      3.04%    3M CD + 0.58%

Hana Bank

     2022~2027        250,000      3.38%    3M CD + 0.59%

Nomura

     2022~2027        200,000      3.55%    3M CD + 0.60%

Shinhan Bank

     2022~2027        150,000      3.53%    3M CD + 0.55%

Hana Bank

     2022~2027        200,000      3.70%    3M CD + 0.59%

Nomura

     2022~2027        300,000      3.89%    3M CD + 0.67%

Hana Bank

     2022~2027        200,000      3.93%    3M CD + 0.67%

Nomura

     2022~2027        200,000      3.80%    3M CD + 0.68%

Nomura

     2022~2027        300,000      4.04%    3M CD + 0.60%

Hana Bank

     2022~2027        100,000      4.68%    3M CD + 1.04%

Hana Bank

     2022~2027        100,000      5.45%    3M CD + 1.20%

Shinhan Bank

     2023~2028        200,000      4.27%    3M CD + 0.76%

Shinhan Bank

     2023~2028        50,000      4.27%    3M CD + 0.76%

Nomura

     2023~2028        250,000      4.13%    3M CD + 0.73%

Hana Bank

     2023~2028        200,000      3.74%    3M CD + 0.51%

Hana Bank

     2023~2028        100,000      4.19%    3M CD + 0.50%

Nomura

     2017~2032        52,457      2.22% + Floating rate    2.60%

Nomura

     2017~2032        59,423      2.24% + Floating rate    2.62%

Nomura (*2)

     2021~2041        30,000      1.84%    2.60%

Nomura (*3)

     2021~2041        50,000      1.87%    2.38%

ANZ

     2022~2025        AUD 540      0.48%    3.33%

DBS Bank

     2022~2025        AUD 540      0.48%    3.33%

Societe Generale

     2022~2025        AUD 540      0.48%    3.28%

 

(*1)

2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(*2)

1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(*3)

1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

 

(6)

Interest rate swap contracts which are designated as hedging instruments as of March 31, 2023 are as follows:

 

In thousands of USD                  Contract interest rate per annum  

Counterparty

   Contract year      Contract
amount
     Pay   Receive  

Export-Import Bank of Korea

     2015~2031        USD 15,893      2.67%     6M USD Libor  

ING Bank

     2015~2031        USD 7,861      2.67%     6M USD Libor  

BNP Paribas

     2015~2031        USD 7,861      2.67%     6M USD Libor  

BNP Paribas

     2009~2027        USD 51,891      4.16%     6M USD Libor  

KFW

     2009~2027        USD 51,891      4.16%     6M USD Libor  

Export-Import Bank of Korea

     2016~2036        USD 66,124      3.00%     6M USD Libor  

 

36


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

12.

Derivatives, Continued

 

(7)

Gain and loss on valuation and transaction of derivatives for the three-month periods ended March 31, 2023 and 2022 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):

 

In millions of won    Net income effects of
valuation gain (loss)
    Net income effects of
transaction gain (loss)
    Accumulated other
comprehensive
income (loss) (*)
 
     March 31, 2023     March 31, 2022     March 31, 2023      March 31, 2022     March 31, 2023     March 31, 2022  

Currency forward

   8,713       (4,613     7,325        8,369       —         —    

Currency swap

     423,204       103,935       11,901        18,318       7,570       (82,914

Interest rate swap

     (64,065     20,255       8,562        (1,872     (819     10,821  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
   367,852       119,577       27,788        24,815       6,751       (72,093
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(*)

For the three-month periods ended March 31, 2023 and 2022, the net gain(loss) on valuation of derivatives applying cash flow hedge accounting of 3,614 and (34,744) million, net of tax, are included in other comprehensive income(loss), respectively.

 

37


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

13.

Other Financial Assets

 

(1)

Other financial assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Loans

   120,130        1,005,394        132,890        968,468  

Less: Allowance for doubtful accounts

     —          (54,824      (13      (54,824

Less: Present value discount

     (1,005      (34,441      (816      (32,334
  

 

 

    

 

 

    

 

 

    

 

 

 
     119,125        916,129        132,061        881,310  
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term / short-term financial instruments

     616,369        694,389        666,758        686,322  
  

 

 

    

 

 

    

 

 

    

 

 

 
   735,494        1,610,518        798,819        1,567,632  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(2)

Loans as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Face value      Allowance for
doubtful accounts
     Present value
discount
     Carrying value  

Short-term loans

           

Loans for tuition

   33,645        —          (1,005      32,640  

Loans for housing

     30,505        —          —          30,505  

Other loans

     55,980        —          —          55,980  
  

 

 

    

 

 

    

 

 

    

 

 

 
     120,130        —          (1,005      119,125  
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term loans

           

Loans for tuition

     443,757        (37,783      (34,441      371,533  

Loans for housing

     309,273        —          —          309,273  

Loans for related parties

     224,113        (17,041      —          207,072  

Other loans

     28,251        —          —          28,251  
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,005,394        (54,824      (34,441      916,129  
  

 

 

    

 

 

    

 

 

    

 

 

 
   1,125,524        (54,824      (35,446      1,035,254  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Face value      Allowance for
doubtful accounts
     Present value
discount
     Carrying value  

Short-term loans

           

Loans for tuition

   30,261        —          (816      29,445  

Loans for housing

     29,630        —          —          29,630  

Other loans

     72,999        (13      —          72,986  
  

 

 

    

 

 

    

 

 

    

 

 

 
     132,890        (13      (816      132,061  
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term loans

           

Loans for tuition

     436,131        (37,783      (32,334      366,014  

Loans for housing

     309,446        —          —          309,446  

Loans for related parties

     187,728        (17,041      —          170,687  

Other loans

     35,163        —          —          35,163  
  

 

 

    

 

 

    

 

 

    

 

 

 
     968,468        (54,824      (32,334      881,310  
  

 

 

    

 

 

    

 

 

    

 

 

 
   1,101,358        (54,837      (33,150      1,013,371  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

13.

Other Financial Assets, Continued

 

(3)

Changes in the allowance for doubtful accounts of loans for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023            December 31, 2022  

Beginning balance

   54,837                 52,677  

Bad debts expense

     —            2,180  

Others

     (13        (20
  

 

 

      

 

 

 

Ending balance

   54,824          54,837  
  

 

 

      

 

 

 

 

(4)

Long-term and short-term financial instruments as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Time deposits

   368,455        113,301        428,813        130,570  

CD

     —          —          30,000        —    

Others

     247,914        581,088        207,945        555,752  
  

 

 

    

 

 

    

 

 

    

 

 

 
   616,369        694,389        666,758        686,322  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March

31, 2023 and 2022 (Unaudited)

 

14.

Inventories

Inventories as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Acquisition cost      Valuation allowance      Book value  

Raw materials

   4,876,505        (1,350      4,875,155  

Merchandises

     588        —          588  

Work-in-progress

     203,186        (75      203,111  

Finished goods

     17,160        (57      17,103  

Supplies

     2,828,264        —          2,828,264  

Inventories-in-transit

     1,886,194        —          1,886,194  

Other inventories

     14,737        —          14,737  
  

 

 

    

 

 

    

 

 

 
   9,826,634        (1,482      9,825,152  
  

 

 

    

 

 

    

 

 

 
In millions of won    December 31, 2022  
     Acquisition cost      Valuation allowance      Book value  

Raw materials

   4,522,171        (1,350      4,520,821  

Merchandises

     1,001        —          1,001  

Work-in-progress

     172,089        (75      172,014  

Finished goods

     52,642        (57      52,585  

Supplies

     2,814,377        —          2,814,377  

Inventories-in-transit

     2,356,444        —          2,356,444  

Other inventories

     13,490        —          13,490  
  

 

 

    

 

 

    

 

 

 
   9,932,214        (1,482      9,930,732  
  

 

 

    

 

 

    

 

 

 

The reversal of the allowance for loss on inventory valuation deducted from the cost of sales for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 amounts to 1,403 million and 18,162 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 were 1,403 million and 14,528 million, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

15.

Non-Financial Assets

Non-financial assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Advanced payments

   166,830        81,718        160,596        51,425  

Prepaid expenses

     398,234        154,560        366,532        153,830  

Others (*)

     1,230,101        43,447        1,217,741        103,879  
  

 

 

    

 

 

    

 

 

    

 

 

 
   1,795,165        279,725        1,744,869        309,134  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Details of others as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Greenhouse gas emissions rights

   211,023        —          192,005        —    

Other quick assets

     1,019,078        43,447        1,025,736        103,879  
  

 

 

    

 

 

    

 

 

    

 

 

 
   1,230,101        43,447        1,217,741        103,879  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

41


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries

 

(1)

Consolidated subsidiaries as of March 31, 2023 and December 31, 2022 are as follows:

 

Subsidiaries

  Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2023     December 31, 2022  

Korea Hydro & Nuclear Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Korea South-East Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Korea Midland Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Korea Western Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Korea Southern Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Korea East-West Power Co., Ltd.

  Power generation    Korea      100.00     100.00

KEPCO Engineering & Construction Company, Inc. (*1)

  Engineering and construction for utility plant and others    Korea      65.77     65.77

KEPCO Plant Service & Engineering Co., Ltd.

  Utility plant maintenance and others    Korea      51.00     51.00

KEPCO Nuclear Fuel Co., Ltd.

  Nuclear fuel    Korea      96.36     96.36

KEPCO KDN Co., Ltd.

  Electric power information technology and others    Korea      100.00     100.00

KEPCO International HongKong Ltd.

  Holding company    Hong Kong      100.00     100.00

KEPCO International Philippines Inc.

  Holding company    Philippines      100.00     100.00

KEPCO Gansu International Ltd.

  Holding company    Hong Kong      100.00     100.00

KEPCO Philippines Holdings Inc.

  Holding company    Philippines      100.00     100.00

KEPCO Philippines Corporation

  Operation of utility plant    Philippines      100.00     100.00

KEPCO Ilijan Corporation

  Construction and operation of utility plant    Philippines      51.00     51.00

KEPCO Lebanon SARL

  Operation of utility plant    Lebanon      100.00     100.00

KEPCO Neimenggu International Ltd.

  Holding company    Hong Kong      100.00     100.00

KEPCO Shanxi International Ltd.

  Holding company    Hong Kong      100.00     100.00

KOMIPO Global Pte Ltd.

  Holding company    Singapore      100.00     100.00

KEPCO Netherlands B.V.

  Holding company    Netherlands      100.00     100.00

KEPCO Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOSEP Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOMIPO Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOWEPO Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOSPO Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

KEPCO Middle East Holding Company

  Holding company    Bahrain      100.00     100.00

Qatrana Electric Power Company

  Construction and operation of utility plant    Jordan      80.00     80.00

KHNP Canada Energy Ltd.

  Holding company    Canada      100.00     100.00

KEPCO Bylong Australia Pty., Ltd.

  Resources development    Australia      100.00     100.00

Korea Waterbury Uranium Limited Partnership

  Resources development    Canada      80.02     80.00

KEPCO Holdings de Mexico

  Holding company    Mexico      100.00     100.00

KST Electric Power Company, S.A.P.I. de C.V.

  Construction and operation of utility plant    Mexico      56.00     56.00

KEPCO Energy Service Company

  Operation of utility plant    Mexico      100.00     100.00

KEPCO Netherlands S3 B.V.

  Holding company    Netherlands      100.00     100.00

PT. KOMIPO Pembangkitan Jawa Bali

  Operation of utility plant    Indonesia      51.00     51.00

PT. Cirebon Power Service (*2)

  Operation of utility plant    Indonesia      27.50     27.50

KOWEPO International Corporation

  Operation of utility plant    Philippines      99.99     99.99

KOSPO Jordan LLC

  Operation of utility plant    Jordan      100.00     100.00

EWP America Inc.

  Holding company    USA      100.00     100.00

EWP Renewable Corporation

  Holding company    USA      100.00     100.00

KNF Canada Energy Limited

  Holding company    Canada      100.00     100.00

EWP Barbados 1 SRL

  Holding company    Barbados      100.00     100.00

California Power Holdings, LLC

  Power generation    USA      100.00     100.00

Gyeonggi Green Energy Co., Ltd.

  Power generation    Korea      62.01     62.01

PT. Tanggamus Electric Power

  Power generation    Indonesia      52.50     52.50

Gyeongju Wind Power Co., Ltd.

  Power generation    Korea      70.00     70.00

KOMIPO America Inc.

  Holding company    USA      100.00     100.00

PT. EWP Indonesia

  Holding company    Indonesia      99.96     99.96

KEPCO Netherlands J3 B.V.

  Holding company    Netherlands      100.00     100.00

Korea Offshore Wind Power Co., Ltd.

  Power generation    Korea      100.00     100.00

Global One Pioneer B.V.

  Holding company    Netherlands      100.00     100.00

Global Energy Pioneer B.V.

  Holding company    Netherlands      100.00     100.00

Mira Power Limited (*3)

  Power generation    Pakistan      76.00     76.00

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

Subsidiaries

  Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2023     December 31, 2022  

KOSEP Material Co., Ltd.

  Recycling fly ashes    Korea      86.22     86.22

Commerce and Industry Energy Co., Ltd. (*4)

  RDF power generation    Korea      85.03     85.03

KEPCO KPS Philippines Corp.

  Utility plant maintenance and others    Philippines      99.99     99.99

KOSPO Chile SpA

  Holding company    Chile      100.00     100.00

PT. KOWEPO Sumsel Operation And Maintenance Services

  Utility plant maintenance and others    Indonesia      95.00     95.00

Hee Mang Sunlight Power Co., Ltd.

  Operation of utility plant    Korea      100.00     100.00

Fujeij Wind Power Company

  Operation of utility plant    Jordan      100.00     100.00

KOSPO Youngnam Power Co., Ltd. (*5)

  Operation of utility plant    Korea      50.00     50.00

Chitose Solar Power Plant LLC

  Power generation    Japan      65.00     65.00

KEPCO Energy Solution Co., Ltd.

  Energy service    Korea      100.00     100.00

KEPCO Solar Co., Ltd.

  Power generation    Korea      100.00     100.00

KOSPO Power Services Ltda.

  Utility plant maintenance and others    Chile      65.00     65.00

Energy New Industry Specialized Investment Private Investment Trust

  Holding company    Korea      99.01     99.01

KOEN Bylong Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOMIPO Bylong Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOWEPO Bylong Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOSPO Bylong Pty., Ltd.

  Resources development    Australia      100.00     100.00

EWP Bylong Pty., Ltd.

  Resources development    Australia      100.00     100.00

KOWEPO Lao International

  Utility plant maintenance and others    Laos      100.00     100.00

KEPCO US Inc.

  Holding company    USA      100.00     100.00

KEPCO Mangilao Holdings LLC

  Holding company    USA      100.00     100.00

Mangilao Investment LLC

  Holding company    USA      80.06     80.06

KEPCO Mangilao Solar, LLC

  Power generation    USA      100.00     100.00

Jeju Hanlim Offshore Wind Co., Ltd.

  Power generation    Korea      79.03     79.03

PT. Siborpa Eco Power

  Construction and operation of utility plant    Indonesia      55.00     55.00

BSK E-New Industry Fund VII

  Holding company    Korea      81.67     81.67

e-New Industry LB Fund 1

  Holding company    Korea      76.11     76.11

Songhyun e-New Industry Fund

  Holding company    Korea      80.65     80.65

BSK E-New Industry Fund X

  Holding company    Korea      66.80     66.80

PT. Korea Energy Indonesia

  Utility plant maintenance and others    Indonesia      95.00     95.00

KOLAT SpA

  Utility plant maintenance and others    Chile      100.00     100.00

KEPCO California, LLC

  Holding company    USA      100.00     100.00

KEPCO Mojave Holdings, LLC

  Holding company    USA      100.00     100.00

Incheon Fuel Cell Co., Ltd.

  Power generation    Korea      60.00     60.00

KOEN Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KOMIPO Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KOWEPO Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KOSPO Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

EWP Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

PT. KOMIPO Energy Indonesia

  Utility plant maintenance and others    Indonesia      95.00     95.00

KNF Partners Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KOSPO USA Inc.

  Holding company    USA      100.00     100.00

Nambu USA LLC

  Holding company    USA      100.00     100.00

Tamra Offshore Wind Power Co., Ltd.

  Power generation    Korea      63.00     63.00

KEPCO MCS Co., Ltd.

  Electric meter reading and others    Korea      100.00     100.00

KEPCO FMS Co., Ltd.

  Security service and others    Korea      100.00     100.00

Firstkeepers Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

Secutec Co., Ltd.

  Security service    Korea      100.00     100.00

SE Green Energy Co., Ltd.

  Power generation    Korea      84.80     84.80

Mangilao Intermediate Holdings LLC

  Holding company    USA      100.00     100.00

KEPCO CSC Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KOAK Power Limited

  Hydro power facility maintenance    Pakistan      100.00     100.00

KOMIPO Europe B.V.

  Holding company    Netherlands      100.00     100.00

Haenanum Energy Fund

  Holding company    Korea      99.64     99.64

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

Subsidiaries

  Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2023     December 31, 2022  

Paju Ecoenergy Co., Ltd.

  Power generation    Korea      89.00     89.00

Guam Ukudu Power LLC

  Power generation    USA      100.00     100.00

K-SOLAR SHINAN Co., Ltd.

  Power generation    Korea      90.00     90.00

KPS Partners Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

KEPCO E&C Service Co., Ltd.

  Facility maintenance and service    Korea      100.00     100.00

Moha solar Co., Ltd.

  Power generation    Korea      100.00     100.00

Ogiri Solar Power Co., Ltd.

  Power generation    Korea      70.00     70.00

KHNP USA LLC

  Holding company    USA      100.00     100.00

KOMIPO Vanphong Power Service LLC

  Utility plant maintenance and others    Vietnam      100.00     100.00

Energy Innovation Fund I

  Holding company    Korea      71.91     71.91

KHNP Chile SpA

  Holding company    Chile      100.00     100.00

Yeong Yang Apollon Photovoltaic Co., Ltd.

  Power generation    Korea      100.00     100.00

Yeong Yang Corporation Co., Ltd.

  Power generation    Korea      100.00     100.00

SolarVader Co., Ltd.

  Power generation    Korea      100.00     100.00

Yeong Yang Innovation Co., Ltd.

  Power generation    Korea      100.00     100.00

Yeong Yang Horus Photovoltaic Co., Ltd.

  Power generation    Korea      100.00     100.00

Yeong Yang Solar Management Co., Ltd.

  Power generation    Korea      100.00     100.00

LSG Hydro Power Limited

  Holding company    Pakistan      99.80     99.80

KOEN Bio Co., Ltd.

  Wood pellet utilization business    Korea      70.00     70.00

KOMIPO Energy Solution America, LLC

  Holding company    USA      100.00     100.00

Elara Investment Holdings, LLC (*6)

  Holding company    USA      0.10     0.10

Elara Equity Holdings, LLC

  Holding company    USA      54.00     54.00

Elara Class B Holdings, LLC

  Holding company    USA      100.00     100.00

Elara Class B Member, LLC

  Holding company    USA      100.00     100.00

Elara Development Holdings, LLC

  Holding company    USA      100.00     100.00

KOMIPO Development, LLC

  Holding company    USA      100.00     100.00

Elara Energy Holdings, LLC (*6)

  Holding company    USA      43.94     43.94

Elara Energy Project, LLC

  Power generation    USA      100.00     100.00

KOMIPO Iberian Solar Group, S.L.U.

  Holding company    Spain      100.00     100.00

Jeongam Wind Power Co., Ltd.

  Power generation    Korea      80.00     80.00

KOWEPO Europe B.V.

  Holding company    Netherlands      100.00     100.00

CVS Equity Holdings, LLC

  Holding company    USA      81.34     81.34

CVS Class B Holdings, LLC

  Holding company    USA      100.00     100.00

CVS Development Holdings, LLC

  Holding company    USA      100.00     100.00

CVS Development, LLC

  Holding company    USA      100.00     100.00

CVS Class B Member, LLC

  Holding company    USA      100.00     100.00

CVS Energy Holdings, LLC

  Holding company    USA      70.79     70.79

Concho Valley Energy, LLC

  Holding company    USA      100.00     100.00

Concho Valley Solar, LLC

  Power generation    USA      100.00     100.00

Yeongdeok Sunrise Wind Power Co., Ltd.

  Power generation    Korea      70.00     70.00

KHNP Spain, S.L.

  Holding company    Spain      —         100.00

UI Carbon-Neutrality Fund

  Holding company    Korea      78.97     78.97

KA Power Limited

  Power generation    Pakistan      100.00     100.00

Western Power Changgi Solar Co., Ltd.

  Power generation    Korea      100.00     100.00

EWP Australia Pty., Ltd.

  Holding company    Australia      100.00     100.00

Columboola Solar Farm Hold Co Pty., Ltd. (*7)

  Power generation    Australia      74.04     74.04

Digital Innovation Growth Fund

  Holding company    Korea      76.92     76.92

J Wind First, LLC (*8)

  Company specializing in liquidization    Korea      —         —    

KEPCO Holding Company

  Holding company    Saudi Arabia      100.00     100.00

KEPCO for Power Company

  Power generation    Saudi Arabia      —         60.00

KEPCO for Maintenance Company

  Utility plant maintenance and others    Saudi Arabia      100.00     100.00

KOSPO Trumbull LLC

  Holding company    USA      100.00     100.00

Changjuk Wind Power Co., Ltd.

  Power generation    Korea      73.00     73.00

Chile Solar JV SpA

  Power generation    Chile      100.00     —    

KEPCO KPS South Africa Pty., Ltd.

  Utility plant maintenance and others    Republic of South
Africa
     100.00     —    

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

(*1)

Considering treasury stocks, the effective percentage of ownership is 66.08%. The Group is planning to sell part of its shares (14.77%) based on the resolution of the board of directors on June 24, 2022.

(*2)

The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group obtained the majority of the voting power under the shareholders’ agreement.

(*3)

As of the reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited.

(*4)

The Group guarantees a certain return on investments in Commerce and Industry Energy Co., Ltd. for the financial investors holding such investments. The financial investors have a right to claim the Group to sell its shares in the entity, which can be exercised 36 months after the date of acquisition. Accordingly, the purchase price including the return on investment is classified as a borrowing.

(*5)

The subsidiary is included in the consolidated financial statements as the Group owns 50%+1 stake and has the ability to appoint a majority of the board members under the shareholders’ agreement.

(*6)

The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group has control over the board of directors under the shareholders’ agreement.

(*7)

Excluding preferred stocks, the percentage of ownership with voting rights is 100%.

(*8)

Although the Group does not hold a stake as of March 31, 2023, considering the purpose and design of the structured entity, the Group is exposed to volatility in the profits of the structured entity. In addition, Company has the ability to direct activities that can most significantly affect the operations of the structured entity, so it has been determined that the Group has control over the entity.

 

(2)

Subsidiaries included in and excluded from consolidation during the three-month period ended March 31, 2023 are as follows:

Subsidiaries included in consolidation during the three-month period ended March 31, 2023.

 

Subsidiaries

  

Reason

Chile Solar JV SpA

   Change in the scope of consolidation

KEPCO KPS South Africa Pty., Ltd.

   New investment

 

Subsidiaries 

excluded from consolidation during the three-month period ended March 31, 2023.

 

Subsidiaries

  

Reason

KHNP Spain, S.L.

   Liquidation

KEPCO for Power Company

   Change in the scope of consolidation

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won                            

March 31, 2023

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the period
 

Korea Hydro & Nuclear Power Co., Ltd.

   69,103,912        43,135,578        2,323,476        (288,793

Korea South-East Power Co., Ltd.

     13,750,590        7,221,508        2,270,937        50,134  

Korea Midland Power Co., Ltd.

     15,748,811        10,399,293        2,381,750        (29,417

Korea Western Power Co., Ltd.

     13,484,591        8,011,921        2,128,185        91,350  

Korea Southern Power Co., Ltd.

     13,680,373        7,844,814        2,416,651        26,290  

Korea East-West Power Co., Ltd.

     12,324,900        5,854,696        1,875,389        103,332  

KEPCO Engineering & Construction Company, Inc.

     803,535        270,506        108,441        8,854  

KEPCO Plant Service & Engineering Co., Ltd.

     1,582,036        404,612        350,810        46,351  

KEPCO Nuclear Fuel Co., Ltd.

     1,033,339        572,900        93,783        19,298  

KEPCO KDN Co., Ltd.

     713,571        171,364        146,427        7,414  

KEPCO International HongKong Ltd.

     134,278        —          —          1,746  

KEPCO International Philippines Inc.

     131,935        104        —          479  

KEPCO Gansu International Ltd.

     6,763        615        —          (5

KEPCO Philippines Holdings Inc.

     184,688        1,995        —          59  

KEPCO Philippines Corporation

     4,025        6        —          23  

KEPCO Ilijan Corporation

     234,973        833        —          705  

KEPCO Lebanon SARL

     183        1,085        —          (12

KEPCO Neimenggu International Ltd.

     277,272        4,029        —          (73

KEPCO Shanxi International Ltd.

     614,580        232,099        —          (3,700

KOMIPO Global Pte Ltd.

     402,267        1,879        —          1,867  

KEPCO Netherlands B.V.

     141,901        78        —          (71

KEPCO Australia Pty., Ltd.

     628        11        —          38  

KOSEP Australia Pty., Ltd.

     76,962        13,585        6,310        1,322  

KOMIPO Australia Pty., Ltd.

     82,472        8,882        6,310        1,361  

KOWEPO Australia Pty., Ltd.

     82,685        8,652        6,310        1,168  

KOSPO Australia Pty., Ltd.

     42,041        8,657        6,310        1,103  

KEPCO Middle East Holding Company

     120,798        107,523        —          (1,785

Qatrana Electric Power Company

     535,871        257,151        6,487        4,784  

KHNP Canada Energy Ltd.

     105,686        5,803        —          87  

KEPCO Bylong Australia Pty., Ltd.

     44,584        455,214        —          (9,357

Korea Waterbury Uranium Limited Partnership

     20,781        78        —          (20

KEPCO Holdings de Mexico

     1,870        2,668        —          465  

KST Electric Power Company, S.A.P.I. de C.V.

     652,661        517,952        17,865        5,306  

KEPCO Energy Service Company

     1,992        727        2,264        238  

KEPCO Netherlands S3 B.V.

     72,160        16,899        —          44  

PT. KOMIPO Pembangkitan Jawa Bali

     18,889        2,294        4,874        3,085  

PT. Cirebon Power Service

     2,471        706        1,932        184  

KOWEPO International Corporation

     —          11        —          —    

KOSPO Jordan LLC

     20,553        4,394        3,618        1,442  

EWP America Inc. (*1)

     50,449        4,340        3,145        (364

KNF Canada Energy Limited

     2,158        38        —          (12

EWP Barbados 1 SRL

     412,774        1,124        797        5,999  

Gyeonggi Green Energy Co., Ltd.

     208,706        224,058        25,446        (9,249

PT. Tanggamus Electric Power

     228,269        158,186        1,799        5,713  

Gyeongju Wind Power Co., Ltd.

     98,956        58,925        6,851        3,097  

KOMIPO America Inc. (*2)

     588,826        322,044        3,277        6,160  

PT. EWP Indonesia

     96,676        2        —          2,586  

KEPCO Netherlands J3 B.V.

     141,599        2,617        —          (36

Korea Offshore Wind Power Co., Ltd.

     341,966        151,936        14,599        5,910  

Global One Pioneer B.V.

     139        64        —          (22

Global Energy Pioneer B.V.

     330        64        —          (22

Mira Power Limited

     410,817        326,923        12,427        (3,759

KOSEP Material Co., Ltd.

     4,036        481        1,124        153  

Commerce and Industry Energy Co., Ltd.

     75,466        30,061        7,544        (1,620

KEPCO KPS Philippines Corp.

     5,306        738        605        (375

KOSPO Chile SpA

     164,572        74,166        —          (1,598

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

March 31, 2023

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the period
 

PT. KOWEPO Sumsel Operation And Maintenance Services

   26        270        —          —    

Hee Mang Sunlight Power Co., Ltd.

     5,888        2,567        178        49  

Fujeij Wind Power Company

     224,657        170,857        —          3,948  

KOSPO Youngnam Power Co., Ltd.

     431,208        317,678        190,364        1,361  

Chitose Solar Power Plant LLC

     107,185        91,148        3,245        284  

KEPCO Energy Solution Co., Ltd.

     314,241        1,787        1,272        1,209  

KEPCO Solar Co., Ltd.

     245,709        31,247        5,797        2,228  

KOSPO Power Services Ltda.

     11,748        7,939        5,790        1,742  

Energy New Industry Specialized Investment Private Investment Trust (*3)

     441,224        2,048        3,486        870  

KOEN Bylong Pty., Ltd.

     11        121        —          —    

KOMIPO Bylong Pty., Ltd.

     11        124        —          —    

KOWEPO Bylong Pty., Ltd.

     11        120        —          (23

KOSPO Bylong Pty., Ltd.

     26        151        —          —    

EWP Bylong Pty., Ltd.

     9        55        —          —    

KOWEPO Lao International

     9,145        758        2,498        (362

KEPCO US Inc.

     92        —          —          (1

KEPCO Mangilao Holdings LLC

     115,132        41,842        189        (1,121

Mangilao Investment LLC

     264,726        3        —          —    

KEPCO Mangilao Solar, LLC

     262,138        1,313        3,537        (47

Jeju Hanlim Offshore Wind Co., Ltd.

     193,656        121,036        —          (1,481

PT. Siborpa Eco Power

     12,390        3        —          (7

PT. Korea Energy Indonesia

     1,912        128        484        74  

KOLAT SpA

     52,224        1,501        712        276  

KEPCO California, LLC

     47,571        4,887        298        107  

KEPCO Mojave Holdings, LLC

     96,090        76,808        —          (968

Incheon Fuel Cell Co., Ltd.

     254,936        232,328        27,370        (3,279

KOEN Service Co., Ltd.

     8,345        4,745        8,933        39  

KOMIPO Service Co., Ltd.

     6,463        4,427        9,173        (59

KOWEPO Service Co., Ltd.

     5,762        2,983        8,509        (331

KOSPO Service Co., Ltd.

     4,917        3,382        7,121        108  

EWP Service Co., Ltd.

     4,010        2,931        6,179        (442

PT. KOMIPO Energy Indonesia

     2,382        36        —          (432

KNF partners Co., Ltd.

     1,796        705        1,025        (142

KOSPO USA Inc.

     323,316        367        —          (684

Nambu USA LLC

     306,117        —          —          32  

Tamra Offshore Wind Power Co., Ltd.

     133,521        96,980        4,635        331  

KEPCO MCS Co., Ltd.

     125,028        68,979        71,929        (946

KEPCO FMS Co., Ltd.

     23,164        16,313        26,273        1,666  

Firstkeepers Co., Ltd.

     18,242        11,229        22,954        2,919  

Secutec Co., Ltd.

     12,821        8,884        17,783        786  

SE Green Energy Co., Ltd.

     146,674        114,234        11,015        (1,379

Mangilao Intermediate Holdings LLC

     241,757        119,779        —          (930

KEPCO CSC Co., Ltd.

     10,214        8,632        10,534        (150

KOAK Power Limited

     15,582        599        —          1,195  

KOMIPO Europe B.V.

     85,145        102        287        (192

Haenanum Energy Fund

     7,415        12        —          (9

Paju Ecoenergy Co., Ltd.

     60,549        2,781        3,996        (1,095

Guam Ukudu Power LLC

     363,040        397,888        —          (5,449

K-SOLAR SHINAN Co., Ltd.

     306,938        293,043        7,711        (10,190

 

47


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

March 31, 2023

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the period
 

KPS Partners Co., Ltd.

   3,722        2,076        3,213        104  

KEPCO E&C Service Co., Ltd.

     6,238        2,078        3,976        381  

Moha solar Co., Ltd.

     27,994        29,938        —          319  

Ogiri Solar Power Co., Ltd.

     1,033        26        —          (3

KHNP USA LLC

     1,303        121        178        (45

KOMIPO Vanphong Power Service LLC

     21,573        2,165        7,126        6,218  

Energy Innovation Fund I

     43,660        —          —          (247

KHNP Chile SpA

     5,583        4,201        —          (18

Yeong Yang Apollon Photovoltaic Co., Ltd.

     1,521        1,472        40        (11

Yeong Yang Corporation Co., Ltd.

     1,513        1,462        39        (12

SolarVader Co., Ltd.

     1,522        1,466        40        (12

Yeong Yang Innovation Co., Ltd.

     1,507        1,462        36        (15

Yeong Yang Horus Photovoltaic Co., Ltd.

     1,502        1,463        34        (16

Yeong Yang Solar Management Co., Ltd.

     1,530        1,466        43        (9

LSG Hydro Power Limited

     912        18        —          (38

KOEN Bio Co., Ltd.

     510        283        390        160  

KOMIPO Iberian Solar Group, S.L.U.

     82,815        69,015        —          106  

Jeongam Wind Power Co., Ltd.

     79,736        66,806        1,952        (554

KOWEPO Europe B.V.

     44,865        2,577        —          (247

Yeongdeok Sunrise Wind Power Co., Ltd.

     45,464        25,794        —          (486

KA Power Limited

     4,182        883        —          548  

Western Power Changgi Solar Co., Ltd.

     47,015        42,590        1,906        301  

EWP Australia Pty., Ltd.

     54,192        1        —          2,102  

Columboola Solar Farm Hold Co Pty., Ltd.

     318,198        217,427        2,698        3,480  

Digital Innovation Growth Fund

     12,394        —          —          (100

J Wind First, LLC

     42,113        42,113        501        —    

KEPCO Holding Company

     3,373        18        —          —    

KEPCO for Maintenance Company

     174        —          —          —    

KOSPO Trumbull LLC

     28        3        —          (10

Changjuk Wind Power Co., Ltd.

     29,762        8,038        2,091        1,152  

Chile Solar JV SpA

     85,821        56,493        —          —    

KEPCO KPS South Africa Pty., Ltd.

     1        —          —          —    

 

(*1)

Financial information of EWP America Inc. includes that of two other subsidiaries, EWP Renewable Corporation, and California Power Holdings, LLC.

(*2)

Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

(*3)

Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of five other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund X, and UI Carbon-Neutrality Fund.

 

48


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

December 31, 2022

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the year
 

Korea Hydro & Nuclear Power Co., Ltd.

   69,129,625        42,843,974        10,386,091        (16,382

Korea South-East Power Co., Ltd.

     13,855,071        7,410,881        8,972,991        71,662  

Korea Midland Power Co., Ltd.

     16,062,605        10,776,943        8,629,165        (58,173

Korea Western Power Co., Ltd.

     13,459,054        8,125,312        8,112,727        106,361  

Korea Southern Power Co., Ltd.

     14,011,354        8,296,983        9,304,362        (68,315

Korea East-West Power Co., Ltd.

     12,079,954        5,818,789        6,925,094        2,888  

KEPCO Engineering & Construction Company, Inc.

     815,533        272,119        505,291        17,954  

KEPCO Plant Service & Engineering Co., Ltd.

     1,555,453        344,702        1,425,913        97,881  

KEPCO Nuclear Fuel Co., Ltd.

     949,455        490,215        304,405        31,508  

KEPCO KDN Co., Ltd.

     734,439        166,272        739,453        42,584  

KEPCO International HongKong Ltd.

     128,784        —          —          (216

KEPCO International Philippines Inc.

     127,744        101        —          9,976  

KEPCO Gansu International Ltd.

     7,125        598        —          (22

KEPCO Philippines Holdings Inc.

     191,634        129        —          39,346  

KEPCO Philippines Corporation

     3,799        14        —          102  

KEPCO Ilijan Corporation

     231,132        3,642        23,263        16,455  

KEPCO Lebanon SARL

     1,890        10,482        —          20  

KEPCO Neimenggu International Ltd.

     269,582        3,917        —          9,938  

KEPCO Shanxi International Ltd.

     597,635        222,186        —          (11,312

KOMIPO Global Pte Ltd.

     388,071        1,817        —          58,030  

KEPCO Netherlands B.V.

     137,454        64        —          8,570  

KEPCO Australia Pty., Ltd.

     579        11        —          102  

KOSEP Australia Pty., Ltd.

     74,180        13,097        52,271        24,443  

KOMIPO Australia Pty., Ltd.

     81,216        10,327        52,272        23,368  

KOWEPO Australia Pty., Ltd.

     81,696        10,184        52,271        22,745  

KOSPO Australia Pty., Ltd.

     41,872        10,174        52,271        24,362  

KEPCO Middle East Holding Company

     116,731        102,054        —          (634

Qatrana Electric Power Company

     513,277        247,027        24,354        22,578  

KHNP Canada Energy Ltd.

     107,200        6,218        —          149  

KEPCO Bylong Australia Pty., Ltd.

     44,034        437,852        —          (45,880

Korea Waterbury Uranium Limited Partnership

     20,934        224        —          (116

KEPCO Holdings de Mexico

     728        1,974        —          (1,363

KST Electric Power Company, S.A.P.I. de C.V.

     653,830        528,315        232,893        23,122  

KEPCO Energy Service Company

     2,238        2,173        7,015        (211

KEPCO Netherlands S3 B.V.

     71,326        16,419        —          4,465  

PT. KOMIPO Pembangkitan Jawa Bali

     15,753        3,232        22,488        3,668  

PT. Cirebon Power Service

     2,316        784        9,602        355  

KOWEPO International Corporation

     —          10        —          —    

KOSPO Jordan LLC

     22,854        6,964        45,009        7,657  

EWP America Inc. (*1)

     47,775        2,595        21,717        4,337  

KNF Canada Energy Limited

     2,116        34        —          (59

EWP Barbados 1 SRL

     395,067        901        3,230        34,260  

Gyeonggi Green Energy Co., Ltd.

     220,414        226,517        112,524        (26,004

PT. Tanggamus Electric Power

     227,638        163,106        3,781        5,778  

Gyeongju Wind Power Co., Ltd.

     98,513        55,579        24,888        9,711  

KOMIPO America Inc. (*2)

     571,200        317,903        34,059        (3,293

PT. EWP Indonesia

     93,390        5        —          4,100  

KEPCO Netherlands J3 B.V.

     135,213        63        —          19,396  

Korea Offshore Wind Power Co., Ltd.

     376,449        192,335        52,526        13,083  

Global One Pioneer B.V.

     135        41        —          (68

Global Energy Pioneer B.V.

     320        40        —          (64

Mira Power Limited

     416,750        310,529        57,135        12,394  

KOSEP Material Co., Ltd.

     3,985        662        4,589        775  

Commerce and Industry Energy Co., Ltd.

     79,172        32,147        31,068        (3,730

KEPCO KPS Philippines Corp.

     5,294        600        5,232        1,004  

KOSPO Chile SpA

     159,500        70,037        —          (2,811

 

49


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

December 31, 2022

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the year
 

PT. KOWEPO Sumsel Operation And Maintenance Services

   25        252        —          (94

Hee Mang Sunlight Power Co., Ltd.

     5,877        2,606        862        304  

Fujeij Wind Power Company

     213,113        163,690        —          16,564  

KOSPO Youngnam Power Co., Ltd.

     425,000        312,831        568,224        10,878  

Chitose Solar Power Plant LLC

     109,964        94,366        14,384        1,615  

KEPCO Energy Solution Co., Ltd.

     317,392        6,147        33,638        138  

KEPCO Solar Co., Ltd.

     243,221        25,405        24,778        9,305  

KOSPO Power Services Ltda.

     6,722        4,762        17,911        (358

Energy New Industry Specialized Investment Private Investment Trust (*3)

     451,762        4,338        24,725        7,093  

KOEN Bylong Pty., Ltd.

     11        119        —          (12

KOMIPO Bylong Pty., Ltd.

     11        122        —          (33

KOWEPO Bylong Pty., Ltd.

     8        94        —          (7

KOSPO Bylong Pty., Ltd.

     25        148        —          (17

EWP Bylong Pty., Ltd.

     8        54        —          1  

KOWEPO Lao International

     8,248        87        10,010        11,185  

KEPCO US Inc.

     91        —          —          (19,181

KEPCO Mangilao Holdings LLC

     112,948        40,558        21,743        21,166  

Mangilao Investment LLC

     258,674        4        —          (1

KEPCO Mangilao Solar, LLC

     240,736        373        8,870        (14,818

Jeju Hanlim Offshore Wind Co., Ltd.

     185,357        111,343        —          (3,546

PT. Siborpa Eco Power

     12,050        3        —          (39

PT. Korea Energy Indonesia

     1,675        80        1,937        (104

KOLAT SpA

     48,787        3,701        1,647        1,888  

KEPCO California, LLC

     46,151        4,768        596        (670

KEPCO Mojave Holdings, LLC

     95,550        75,846        —          (4,705

Incheon Fuel Cell Co., Ltd.

     268,063        242,176        107,193        (5,323

KOEN Service Co., Ltd.

     9,353        7,035        36,340        356  

KOMIPO Service Co., Ltd.

     6,597        4,503        35,031        905  

KOWEPO Service Co., Ltd.

     6,266        3,130        34,031        171  

KOSPO Service Co., Ltd.

     6,672        5,048        28,321        60  

EWP Service Co., Ltd.

     3,756        2,507        24,526        581  

PT. KOMIPO Energy Indonesia

     2,978        368        1,698        83  

KNF partners Co., Ltd.

     2,285        1,053        5,997        293  

KOSPO USA Inc.

     315,018        430        —          5,024  

Nambu USA LLC

     297,516        —          —          670  

Tamra Offshore Wind Power Co., Ltd.

     133,598        93,639        18,332        5,316  

KEPCO MCS Co., Ltd.

     114,316        52,241        363,627        8,468  

KEPCO FMS Co., Ltd.

     16,852        11,667        105,339        2,176  

Firstkeepers Co., Ltd.

     16,448        12,912        84,620        2,482  

Secutec Co., Ltd.

     12,578        9,209        69,383        690  

SE Green Energy Co., Ltd.

     149,189        114,241        49,873        1,304  

Mangilao Intermediate Holdings LLC

     236,266        116,426        —          (4,709

KEPCO CSC Co., Ltd.

     10,668        8,937        46,559        (2,134

KOAK Power Limited

     12,626        839        —          49  

KOMIPO Europe B.V.

     81,364        54        1,195        1,134  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

December 31, 2022

 

Subsidiaries

   Total
assets
     Total
liabilities
     Sales      Profit (loss)
for the year
 

Haenanum Energy Fund

   7,416        3        —          (48

Paju Ecoenergy Co., Ltd.

     61,930        3,066        20,718        1,290  

Guam Ukudu Power LLC

     293,422        323,292        —          (31,410

K-SOLAR SHINAN Co., Ltd.

     320,227        296,141        16,980        3,690  

KPS Partners Co., Ltd.

     3,619        2,007        12,417        487  

KEPCO E&C Service Co., Ltd.

     5,676        1,897        16,180        1,493  

Moha solar Co., Ltd.

     29,096        31,359        169        (1,137

Ogiri Solar Power Co., Ltd.

     1,033        23        —          (30

KHNP USA LLC

     1,290        97        1,127        392  

KOMIPO Vanphong Power Service LLC

     15,940        3,333        20,233        9,871  

Energy Innovation Fund I

     35,310        445        —          (961

KHNP Chile SpA

     5,547        4,147        —          (16

Yeong Yang Apollon Photovoltaic Co., Ltd.

     1,566        1,507        254        (82

Yeong Yang Corporation Co., Ltd.

     1,559        1,497        251        (91

SolarVader Co., Ltd.

     1,568        1,500        256        (78

Yeong Yang Innovation Co., Ltd.

     1,557        1,497        244        (91

Yeong Yang Horus Photovoltaic Co., Ltd.

     1,552        1,498        243        (93

Yeong Yang Solar Management Co., Ltd.

     1,573        1,500        262        (75

LSG Hydro Power Limited

     1,144        1,159        —          (18

KOEN Bio Co., Ltd.

     261        219        639        (150

KOMIPO Iberian Solar Group, S.L.U.

     78,094        65,012        —          (1,304

Jeongam Wind Power Co., Ltd.

     81,800        68,317        10,722        892  

KOWEPO Europe B.V.

     42,865        2,422        —          1,668  

Yeongdeok Sunrise Wind Power Co., Ltd.

     42,187        22,031        —          (328

KHNP Spain, S.L.

     3        —          —          (1

KA Power Limited

     3,937        418        —          442  

Western Power Changgi Solar Co., Ltd.

     48,770        44,647        3,447        (354

EWP Australia Pty., Ltd.

     51,105        —          —          15,203  

Columboola Solar Farm Hold Co Pty., Ltd.

     310,271        214,792        2,228        2,884  

Digital Innovation Growth Fund

     12,594        100        —          (363

J Wind First, LLC

     33,611        33,611        450        —    

KEPCO Holding Company

     3,273        17        —          (18

KEPCO for Power Company

     57,501        58,441        —          (960

KEPCO for Maintenance Company

     —          —          —          —    

KOSPO Trumbull LLC

     37        3        —          —    

Changjuk Wind Power Co., Ltd.

     29,208        3,137        9,027        3,503  

 

(*1)

Financial information of EWP America Inc. includes that of two other subsidiaries, EWP Renewable Corporation, and California Power Holdings, LLC.

(*2)

Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

(*3)

Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of five other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund X, and UI Carbon-Neutrality Fund.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(4)

Significant restrictions on abilities to subsidiaries as of March 31, 2023 are as follows:

 

Company

  

Nature and extent of any significant restrictions

Gyeonggi Green Energy Co., Ltd.

   Acquisition or disposal of assets of more than 35 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Group.

KOSPO Youngnam Power Co., Ltd.

   Dividends can only be paid when all conditions of the loan agreement are satisfied, or prior written consent of financial institutions is obtained. Group’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.

Jeongam Wind Power Co., Ltd.

   Dividends can only be paid when all conditions of the loan agreement are satisfied, and payments to the contracting party may be restricted depending on the financial management priority of the contract. Group’s shares cannot be wholly or partially transferred without prior consent of other stakeholders including shareholders or financial institutions.

Incheon Fuel Cell Co., Ltd.

   Acquisition or disposal of assets of more than 20 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Group.

Gyeongju Wind Power Co., Ltd.

   Dividends and settlement amounts for O&M and renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Korea Offshore Wind Power Co., Ltd.

   Principals and interest payments on subordinated loans or dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Jeju Hanlim Offshore Wind Co., Ltd.

   Prior approval from the lender is required when withdrawing funds (major expenditure, REC settlement, dividend payment, etc.) according to the loan agreement.

Yeongdeok Sunrise Wind Power Co., Ltd.

   Dividends can only be paid when all conditions of the loan agreement are satisfied.

Columboola Solar Farm Hold Co Pty., Ltd.

   Dividends can only be paid when all conditions of the loan agreement are satisfied.

 

(5)

As of March 31, 2023, the Group has following entitlements in relation to its subsidiaries as per its shareholders’ agreements:

 

Company

  

Unrecognized Commitments

Jeongam Wind Power Co., Ltd.

   When the Group requests other shareholders to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares at fair value.

Changjuk Wind Power Co., Ltd.

   When other shareholders want to sell their shares after the performance guarantee period of wind power generators stipulated in the equipment supply contract is completed, the Group has an obligation to purchase the shares at fair value after consulting with the parties on the timing and size of the acquisition, taking in to account financial conditions, business conditions, and other circumstances.

Columboola Solar Farm Hold Co Pty., Ltd.

   The Group holds a call option to purchase the shares held by another shareholder at 80% of the stock’s valuation in the event of a breach of obligation specified in the shareholder agreement.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(6)

Details of non-controlling interests prior to intra-Company eliminations as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won  

March 31, 2023

 

Description

   KEPCO Ilijan
Corporation
    KEPCO Plant
Service &
Engineering
Co., Ltd.
    KEPCO
Engineering &
Construction
Company, Inc.
    Others     Total  

Percentage of ownership

     49.00     49.00     33.92    

Current assets

   234,731       922,053       377,291       1,212,867       2,746,942  

Non-current assets

     242       659,983       426,244       4,942,505       6,028,974  

Current liabilities

     (833     (382,124     (242,014     (1,045,961     (1,670,932

Non-current liabilities

     —         (22,488     (28,492     (2,793,403     (2,844,383

Net assets

     234,140       1,177,424       533,029       2,316,008       4,260,601  

Book value of non-controlling interests

     114,728       576,938       180,803       575,894       1,448,363  

Sales

     —         350,810       108,441       457,131       916,382  

Profit for the period

     705       46,351       8,854       21,367       77,277  

Profit for the period attributable to non-controlling interests

     345       22,712       3,003       9,210       35,270  

Cash flows from operating activities

     (1,560     37,850       (11,337     377,340       402,293  

Cash flows from investing activities

     39       (64,282     (3,247     (134,147     (201,637

Cash flows from financing activities before dividends to non-controlling interests

     —         (1,747     (302     (126,868     (128,917

Dividends to non-controlling interests

     —         —         —         (2,553     (2,553

Effect of exchange rate fluctuation

     6,567       486       47       (300     6,800  

Net increase of cash and cash equivalents

     5,046       (27,693     (14,839     113,472       75,986  

 

In millions of won  

December 31, 2022

 

Description

   KEPCO Ilijan
Corporation
    KEPCO Plant
Service &
Engineering
Co., Ltd.
    KEPCO
Engineering &
Construction
Company, Inc.
    Others     Total  

Percentage of ownership

     49.00     49.00     33.92    

Current assets

   230,031       861,705       372,031       1,147,973       2,611,740  

Non-current assets

     1,101       693,748       443,502       4,942,229       6,080,580  

Current liabilities

     (3,642     (316,497     (243,796     (841,521     (1,405,456

Non-current liabilities

     —         (28,205     (28,323     (2,944,145     (3,000,673

Net assets

     227,490       1,210,751       543,414       2,304,536       4,286,191  

Book value of non-controlling interests

     111,470       593,268       184,326       565,796       1,454,860  

Sales

     23,263       1,425,913       505,291       1,709,390       3,663,857  

Profit for the year

     16,455       97,881       17,954       91,566       223,856  

Profit for the year attributable to non-controlling interests

     8,063       47,962       6,090       (24,370     37,745  

Cash flows from operating activities

     68,475       81,419       4,918       231,653       386,465  

Cash flows from investing activities

     22,604       27,372       18,712       (747,507     (678,819

Cash flows from financing activities before dividends to non-controlling interests

     (9,609     (33,187     (7,260     582,580       532,524  

Dividends to non-controlling interests

     (8,834     (26,438     (3,071     (4,001     (42,344

Effect of exchange rate fluctuation

     8,807       (486     5       (11,023     (2,697

Net increase of cash and cash equivalents

     81,443       48,680       13,304       51,702       195,129  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(7)

Changes in goodwill

(i) Details of goodwill as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023     December 31, 2022  

Acquisition cost

   125,525       100,093  

Less: Accumulated impairment

     —         —    
  

 

 

   

 

 

 

Carrying book value

   125,525       100,093  
  

 

 

   

 

 

 

(ii) Changes in goodwill for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning      Increase (*)      Decrease      Others      Ending  

Acquisition cost

   100,093        25,432        —          —          125,525  

Less: Accumulated impairment

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Carrying book value

   100,093        25,432        —              —           125,525  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Beginning        Increase         Decrease      Others      Ending  

Acquisition cost

   105,647             —          —          (5,554      100,093  

Less: Accumulated impairment

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Carrying book value

   105,647        —          —          (5,554      100,093  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

The Group recorded 25,432 of increase for the three-month period ended March 31, 2023 as an entity, Chile Solar JV SpA, was newly included in the scope of consolidation due to the Group’s additional acquisition of shares in the entity, and adjustments to the amounts for the period before March 31, 2024, the date after one year passed from the end of the transaction, will be reflected in goodwill.

 

(8)

Disposals of subsidiaries

The Group has completed the liquidation process of KHNP Spain, S.L. during the three-month period ended March 31, 2023. The Group has completed the liquidation process of EWPRC Biomass Holdings, LLC, KEPCO Alamosa LLC, and KEPCO Mangilao America LLC, and has disposed of shares of KEPCO Solar of Alamosa LLC during the year ended December 31, 2022.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures

 

(1)

Investments in associates and joint ventures as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won       

March 31, 2023

 

Investees

  

Key operation activities

  Location     Percentage of
ownership
    Acquisition
cost
    Book
value
 

<Associates>

          

Korea Gas Corporation

   Importing and wholesaling LNG     Korea       20.47%     94,500       2,126,458  

YTN Co., Ltd.(*1)

   Broadcasting     Korea       21.43%       59,000       53,013  

Hyundai Green Power Co., Ltd.

   Power generation equipment consignment and operation service     Korea       29.00%       88,885       116,608  

Korea Power Exchange (*2)

   Management of power market and others     Korea       100.00%       127,839       277,456  

SPC Power Corporation (*3)

   Power generation     Philippines       38.00%       20,635       76,297  

Gemeng International Energy Co., Ltd.

   Power generation     China       34.00%       413,153       611,058  

PT. Cirebon Electric Power

   Power generation     Indonesia       27.50%       40,365       141,430  

PT Wampu Electric Power

   Power generation     Indonesia       46.00%       21,292       37,282  

PT. Bayan Resources TBK

   Resources development     Indonesia       20.00%       615,860       790,203  

S-Power Co., Ltd.

   Power generation     Korea       49.00%       132,300       150,337  

Xe-Pian Xe-Namnoy Power Co., Ltd.

   Power generation     Laos       25.00%       87,426       117,732  

Goseong Green Power Co., Ltd.

   Power generation     Korea       29.00%       262,740       291,025  

Gangneung Eco Power Co., Ltd.

   Power generation     Korea       29.00%       261,000       257,695  

Shin Pyeongtaek Power Co., Ltd.

   Power generation     Korea       40.00%       72,000       155,796  

Dongducheon Dream Power Co., Ltd. (*4)

   Power generation     Korea       33.61%       148,105       87,729  

GS Donghae Electric Power Co., Ltd.

   Power generation     Korea       34.00%       204,000       255,438  

Nepal Water & Energy Development Company Private Limited (*5)

   Construction and operation of utility plant     Nepal       76.73%       101,549       105,890  

Indeck Niles Development, LLC

   Power generation     USA       50.00%       263,825       315,854  

PT. Cirebon Energi Prasarana (*6)

   Power generation     Indonesia       10.00%       26,710       70,482  

Others (Gangwon Wind Power Co., Ltd. and 75 others)

           326,417       304,425  
        

 

 

   

 

 

 
           3,367,601       6,342,208  
        

 

 

   

 

 

 

<Joint ventures>

          

Shuweihat Asia Power Investment B.V.

   Holding company     Netherland       49.00%       44,405       67,993  

KEPCO SPC Power Corporation (*3,7)

   Construction and operation of utility plant     Philippines       75.20%       94,579       194,376  

Datang Chifeng Renewable Power Co., Ltd.

   Power generation     China       40.00%       121,928       205,637  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

   Power generation     China       40.00%       39,872       46,829  

Rabigh Electricity Company

   Power generation     Saudi Arabia       40.00%       109,743       231,697  

Jamaica Public Service Company Limited

   Power generation     Jamaica       40.00%       301,910       346,138  

Amman Asia Electric Power Company (*7)

   Power generation     Jordan       60.00%       111,476       226,592  

Chun-cheon Energy Co., Ltd.

   Power generation     Korea       29.90%       52,700       33,354  

Nghi Son 2 Power LLC

   Power generation     Vietnam       50.00%       175,261       408,061  

Kelar S.A. (*7)

   Power generation     Chile       65.00%       78,060       125,730  

PT. Tanjung Power Indonesia

   Power generation     Indonesia       35.00%       57,039       96,253  

South Jamaica Power Company Limited

   Power generation     Jamaica       20.00%       20,430       48,649  

RE Holiday Holdings LLC

   Power generation     USA       50.00%       42,948       84,297  

RE Pioneer Holdings LLC

   Power generation     USA       50.00%       27,891       54,436  

Solar Philippines Calatagan Corporation

   Power generation     Philippines       38.00%       47,903       55,448  

PT Barito Wahana Tenaga

   Power generation     Indonesia       30.61%       59,574       141,029  

OneEnergy Asia Limited

   Power generation     Vietnam       40.00%       149,567       207,543  

Prime Swedish Holding AB

   Holding company     Sweden       45.00%       35,410       37,991  

Others (Dangjin Eco Power Co., Ltd. and 88 others)

           807,312       679,792  
        

 

 

   

 

 

 
           2,378,008       3,291,845  
        

 

 

   

 

 

 
         5,745,609       9,634,053  
        

 

 

   

 

 

 

 

(*1)

The Group is planning to sell its investments in YTN Co., Ltd. based on the resolution of the Board of Directors on November 23, 2022, but investments in YTN Co., Ltd. are not classified as assets held-for-sale as the group hasn’t started the active selling procedures as of March 31, 2023.

(*2)

The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

 

55


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

(*3)

The Group is planning to sell its investment in SPC Power Corporation, KEPCO SPC Power Corporation and time or proceeds of sales are not specified as of March 31, 2023.

(*4)

The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*5)

The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(*6)

The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group exercises significant influence over the decisions related to finance and operation.

(*7)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and the Group can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

 

56


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won       

December 31, 2022

 

Investees

  

Key operation activities

  Location     Percentage of
ownership
    Acquisition
cost
    Book
value
 

<Associates>

          

Korea Gas Corporation

   Importing and wholesaling LNG     Korea       20.47%     94,500       2,085,296  

YTN Co., Ltd.(*1)

   Broadcasting     Korea       21.43%       59,000       55,027  

Hyundai Green Power Co., Ltd.

   Power generation equipment consignment and operation service     Korea       29.00%       88,885       119,791  

Korea Power Exchange (*2)

   Management of power market and others     Korea       100.00%       127,839       275,126  

SPC Power Corporation (*3)

   Power generation     Philippines       38.00%       20,635       70,868  

Gemeng International Energy Co., Ltd.

   Power generation     China       34.00%       413,153       578,821  

PT. Cirebon Electric Power

   Power generation     Indonesia       27.50%       40,365       135,114  

PT Wampu Electric Power

   Power generation     Indonesia       46.00%       21,292       37,743  

PT. Bayan Resources TBK

   Resources development     Indonesia       20.00%       615,860       684,719  

S-Power Co., Ltd.

   Power generation     Korea       49.00%       132,300       141,128  

Xe-Pian Xe-Namnoy Power Co., Ltd.

   Power generation     Laos       25.00%       87,426       115,584  

Goseong Green Power Co., Ltd.

   Power generation     Korea       29.00%       262,740       288,893  

Gangneung Eco Power Co., Ltd. (*8)

   Power generation     Korea       1.61%       2,900       —    

Shin Pyeongtaek Power Co., Ltd.

   Power generation     Korea       40.00%       72,000       133,823  

Dongducheon Dream Power Co., Ltd. (*4)

   Power generation     Korea       33.61%       148,105       89,300  

GS Donghae Electric Power Co., Ltd.

   Power generation     Korea       34.00%       204,000       260,145  

Nepal Water & Energy Development Company Private Limited (*5)

   Construction and operation of utility plant     Nepal       69.06%       70,228       69,940  

Indeck Niles Development, LLC

   Power generation     USA       50.00%       263,825       302,038  

PT. Cirebon Energi Prasarana (*6)

   Power generation     Indonesia       10.00%       26,710       69,035  

Others (Gangwon Wind Power Co., Ltd. and 77 others)

           337,920       332,073  
        

 

 

   

 

 

 
           3,089,683       5,844,464  
        

 

 

   

 

 

 

<Joint ventures>

          

Shuweihat Asia Power Investment B.V.

   Holding company     Netherland       49.00%       44,405       66,452  

KEPCO SPC Power Corporation (*3,7)

   Construction and operation of utility plant     Philippines       75.20%       94,579       179,594  

Datang Chifeng Renewable Power Co., Ltd.

   Power generation     China       40.00%       121,928       191,982  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

   Power generation     China       40.00%       39,872       44,398  

Rabigh Electricity Company

   Power generation     Saudi Arabia       40.00%       109,743       214,607  

Jamaica Public Service Company Limited

   Power generation     Jamaica       40.00%       301,910       331,407  

Amman Asia Electric Power Company (*7)

   Power generation     Jordan       60.00%       111,476       220,254  

Chun-cheon Energy Co., Ltd.

   Power generation     Korea       29.90%       52,700       32,044  

Nghi Son 2 Power LLC

   Power generation     Vietnam       50.00%       175,261       408,839  

Kelar S.A. (*7)

   Power generation     Chile       65.00%       78,060       117,137  

PT. Tanjung Power Indonesia

   Power generation     Indonesia       35.00%       57,039       92,907  

South Jamaica Power Company Limited

   Power generation     Jamaica       20.00%       20,430       46,437  

RE Holiday Holdings LLC

   Power generation     USA       50.00%       42,948       85,370  

RE Pioneer Holdings LLC

   Power generation     USA       50.00%       27,891       55,172  

Solar Philippines Calatagan Corporation

   Power generation     Philippines       38.00%       47,903       56,902  

PT Barito Wahana Tenaga

   Power generation     Indonesia       30.61%       59,574       137,047  

OneEnergy Asia Limited

   Power generation     Vietnam       40.00%       115,949       172,218  

Prime Swedish Holding AB

   Holding company     Sweden       45.00%       35,410       36,245  

Others (Dangjin Eco Power Co., Ltd. and 88 others)

           795,501       658,572  
        

 

 

   

 

 

 
           2,332,579       3,147,584  
        

 

 

   

 

 

 
         5,422,262       8,992,048  
        

 

 

   

 

 

 

 

(*1)

The Group is planning to sell its investments in YTN Co., Ltd. based on the resolution of the Board of Directors on November 23, 2022, but investments in YTN Co., Ltd. are not classified as assets held-for-sale as the group hasn’t started the active selling procedures as of December 31, 2022.

(*2)

The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

 

57


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

(*3)

The Group is planning to sell its investment in SPC Power Corporation, KEPCO SPC Power Corporation and time or proceeds of sales are not specified as of December 31, 2022.

(*4)

The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*5)

The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(*6)

The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group exercises significant influence over the decisions related to finance and operation.

(*7)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and the Group can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

(*8)

The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of the Group’s financial and operating policy of the board of directors.

 

58


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(2)

The fair value of associates which are actively traded on an open market and have a readily available market value as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won              

Investees

   March 31, 2023      December 31, 2022  

<Associates>

     

Korea Electric Power Industrial Development Co., Ltd.

   76,956        80,454  

Korea Gas Corporation

     512,190        684,180  

YTN Co., Ltd.

     55,620        50,220  

SPC Power Corporation

     135,378        134,814  

PT. Bayan Resources TBK

     1,199,411        1,132,601  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(3)

Changes in investments in associates and joint ventures for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won                                                   

March 31, 2023

 

Investees

   Beginning
balance
     Acquisition      Disposals     Dividends
received
    Share of
income
(loss)
    Other
comprehensive
income (loss)
    Others     Ending balance  

<Associates>

                  

Korea Gas Corporation

   2,085,296        —          —         —         27,283       14,017       (138     2,126,458  

YTN Co., Ltd.

     55,027        —          —         (540     (1,518     (4     48       53,013  

Hyundai Green Power Co., Ltd.

     119,791        —          —         (3,555     372       —         —         116,608  

Korea Power Exchange

     275,126        —          —         —         2,330       —         —         277,456  

SPC Power Corporation

     70,868        —          —         —         2,505       2,924       —         76,297  

Gemeng International Energy Co., Ltd.

     578,821        —          —         —         5,907       26,330       —         611,058  

PT. Cirebon Electric Power

     135,114        —          —         —         2,372       —         3,944       141,430  

PT Wampu Electric Power

     37,743        —          —         (1,415     (774     674       1,054       37,282  

PT. Bayan Resources TBK

     684,719        —          —         —         77,766       27,740       (22     790,203  

S-Power Co., Ltd.

     141,128        —          —         —         9,209       —         —         150,337  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     115,584        —          —         —         (1,011     3,159       —         117,732  

Goseong Green Power Co., Ltd.

     288,893        —          —         —         2,141       —         (9     291,025  

Gangneung Eco Power Co., Ltd.

     —          258,100        —         —         (405     —         —         257,695  

Shin Pyeongtaek Power Co., Ltd.

     133,823        —          —         (26,880     48,853       —         —         155,796  

Dongducheon Dream Power Co., Ltd.

     89,300        —          —         —         (2,088     —         517       87,729  

GS Donghae Electric Power Co., Ltd.

     260,145        —          —         (9,249     4,542       —         —         255,438  

Nepal Water & Energy Development Company Private Limited

     69,940        31,321        —         —         2,649       1,980       —         105,890  

Indeck Niles Development, LLC

     302,038        —          —         —         6,646       (1,640     8,810       315,854  

PT. Cirebon Energi Prasarana

     69,035        —          —         —         (933     403       1,977       70,482  

Others (Gangwon Wind Power Co., Ltd. and 76 others)

     332,073        —          (10     (12,490     (4,849     1,328       (11,627     304,425  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     5,844,464        289,421        (10     (54,129     180,997       76,911       4,554       6,342,208  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

<Joint ventures>

                  

Shuweihat Asia Power Investment B.V.

     66,452        —          —         —         (153     1,694       —         67,993  

KEPCO SPC Power Corporation

     179,594        —          —         —         4,666       10,116       —         194,376  

Datang Chifeng Renewable Power Co., Ltd.

     191,982        —          —         —         5,434       8,221       —         205,637  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     44,398        —          —         —         540       1,891       —         46,829  

Rabigh Electricity Company

     214,607        —          —         —         13,522       3,568       —         231,697  

Jamaica Public Service Company Limited

     331,407        —          —         —         5,074       9,202       455       346,138  

Amman Asia Electric Power Company

     220,254        —          —         —         2,659       3,679       —         226,592  

Chun-cheon Energy Co., Ltd.

     32,044        —          —         —         1,310       —         —         33,354  

Nghi Son 2 Power LLC

     408,839        —          —         —         (305     (473     —         408,061  

Kelar S.A.

     117,137        —          —         —         5,106       —         3,487       125,730  

PT. Tanjung Power Indonesia

     92,907        —          —         —         2,656       919       (229     96,253  

South Jamaica Power Company Limited

     46,437        —          —         —         856       1,356       —         48,649  

RE Holiday Holdings LLC

     85,370        —          —         (1,424     (1,769     2,120       —         84,297  

RE Pioneer Holdings LLC

     55,172        —          —         (1,145     (1,015     1,424       —         54,436  

Solar Philippines Calatagan Corporation

     56,902        —          —         —         1,493       (2,947     —         55,448  

PT Barito Wahana Tenaga

     137,047        —          —         —         3,423       559       —         141,029  

OneEnergy Asia Limited

     172,218        33,618        —         —         (12,132     13,839       —         207,543  

Prime Swedish Holding AB

     36,245        —          —         —         (74     —         1,820       37,991  

Others (Dangjin Eco Power Co., Ltd. and 89 others)

     658,572        10,853        (944     (15,214     19,623       4,938       1,964       679,792  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     3,147,584        44,471        (944     (17,783     50,914       60,106       7,497       3,291,845  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   8,992,048        333,892        (954     (71,912     231,911       137,017       12,051       9,634,053  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

60


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(3)

Changes in investments in associates and joint ventures for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                                                   

December 31, 2022

 

Investees

   Beginning
balance
     Acquisition      Disposals     Dividends
received
    Share of
income
(loss)
    Other
comprehensive
income (loss)
    Others     Ending balance  

<Associates>

                  

Korea Gas Corporation

   1,815,513        —          —         (51,559     305,638       7,746       7,958       2,085,296  

YTN Co., Ltd.

     51,828        —          —         (450     1,565       (34     2,118       55,027  

Hyundai Green Power Co., Ltd.

     121,955        —          —         (4,008     1,770       1,345       (1,271     119,791  

Korea Power Exchange

     269,728        —          —         —         772       —         4,626       275,126  

SPC Power Corporation

     65,046        —          —         (2,694     1,188       7,330       (2     70,868  

Gemeng International Energy Co., Ltd.

     595,218        —          —         —         (233     (16,164     —         578,821  

PT. Cirebon Electric Power

     121,969        —          —         (10,659     14,776       704       8,324       135,114  

PT Wampu Electric Power

     35,077        —          —         (5,551     5,848       54       2,315       37,743  

PT. Bayan Resources TBK

     661,289        —          —         (515,139     531,528       7,041       —         684,719  

S-Power Co., Ltd.

     122,786        —          —         —         18,342       —         —         141,128  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     92,441        —          —         —         15,582       7,561       —         115,584  

Goseong Green Power Co., Ltd.

     260,858        —          —         —         27,992       —         43       288,893  

Gangneung Eco Power Co., Ltd.

     2,288        —          —         —         (2,288     —         —         —    

Shin Pyeongtaek Power Co., Ltd.

     93,074        —          —         —         40,713       —         36       133,823  

Dongducheon Dream Power Co., Ltd.

     74,198        —          —         —         15,086       —         16       89,300  

GS Donghae Electric Power Co., Ltd.

     243,772        —          —         —         15,717       —         656       260,145  

Nepal Water & Energy Development Company Private Limited

     66,333        —          —         —         (923     4,530       —         69,940  

Indeck Niles Development, LLC

     246,273        —          (4,289     —         21,975       21,840       16,239       302,038  

PT. Cirebon Energi Prasarana

     —          24,052        —         —         35,315       6,963       2,705       69,035  

Others (Gangwon Wind Power Co., Ltd. and 82 others)

     292,727        70,985        (27,109     (9,268     41,225       (3,648     (32,839     332,073  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     5,232,373        95,037        (31,398     (599,328     1,091,588       45,268       10,924       5,844,464  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

<Joint ventures>

                  

Shuweihat Asia Power Investment B.V.

     37,069        —          —         (3,545     (1,303     34,231       —         66,452  

KEPCO SPC Power Corporation

     198,979        —          —         (34,280     27,591       (12,696     —         179,594  

Datang Chifeng Renewable Power Co., Ltd.

     204,587        —          —         (8,732     2,849       (6,722     —         191,982  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     44,217        —          —         (2,694     3,936       (1,061     —         44,398  

Rabigh Electricity Company

     143,678        —          —         (11,447     31,523       50,853       —         214,607  

Jamaica Public Service Company Limited

     294,649        —          —         (7,752     28,541       19,494       (3,525     331,407  

Amman Asia Electric Power Company

     178,679        —          —         (19,350     23,442       37,483       —         220,254  

Chun-cheon Energy Co., Ltd.

     25,896        —          —         —         6,148       —         —         32,044  

Nghi Son 2 Power LLC

     —          172,480        —         —         51,218       185,141       —         408,839  

Kelar S.A.

     86,695        —          —         —         3,695       21,241       5,506       117,137  

PT. Tanjung Power Indonesia

     46,546        30,147        —         (6,104     4,645       18,323       (650     92,907  

South Jamaica Power Company Limited

     37,360        —          —         —         6,625       2,452       —         46,437  

RE Holiday Holdings LLC

     73,167        —          —         (2,288     2,526       11,965       —         85,370  

RE Pioneer Holdings LLC

     47,015        —          —         (1,337     (275     9,769       —         55,172  

Solar Philippines Calatagan Corporation

     58,231        —          —         (1,710     6,081       (5,700     —         56,902  

PT Barito Wahana Tenaga

     81,595        39        —         —         13,352       42,061       —         137,047  

OneEnergy Asia Limited

     79,700        39,033        —         —         (18,294     71,779       —         172,218  

Prime Swedish Holding AB

     15,441        20,896        —         —         (261     —         169       36,245  

Others (Dangjin Eco Power Co., Ltd. and 87 others)

     585,507        29,438        (35,915     (13,373     54,666       28,931       9,318       658,572  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     2,239,011        292,033        (35,915     (112,612     246,705       507,544       10,818       3,147,584  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   7,471,384        387,070        (67,313     (711,940     1,338,293       552,812       21,742       8,992,048  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

61


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(4)

Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won                           

March 31, 2023

 

Investees

   Total assets      Total liabilities     Sales      Profit (loss) for
the period
 

<Associates>

          

Korea Gas Corporation (*)

   62,539,798        51,936,147       17,929,949        133,283  

YTN Co., Ltd.

     347,944        100,549       27,090        (3,530

Hyundai Green Power Co., Ltd.

     764,882        362,786       24,402        1,314  

Korea Power Exchange

     311,824        34,368       27,464        2,197  

SPC Power Corporation

     279,075        28,392       21,268        4,547  

Gemeng International Energy Co., Ltd.

     8,132,389        5,666,328       774,844        25,252  

PT. Cirebon Electric Power

     706,607        192,316       68,913        8,565  

PT Wampu Electric Power

     206,377        125,330       4,859        1,944  

PT. Bayan Resources TBK

     4,529,268        1,455,364       1,338,113        572,189  

S-Power Co., Ltd.

     830,759        521,365       382,052        19,597  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     1,387,629        912,693       14,667        (7,278

Goseong Green Power Co., Ltd.

     5,568,449        4,560,631       393,111        6,199  

Gangneung Eco Power Co., Ltd.

     5,183,667        4,457,651       321,615        (1,759

Shin Pyeongtaek Power Co., Ltd.

     1,327,383        908,988       392,985        121,756  

Dongducheon Dream Power Co., Ltd.

     1,574,049        1,276,861       705,977        (6,402

GS Donghae Electric Power Co., Ltd.

     2,125,693        1,374,404       285,474        13,361  

Nepal Water & Energy Development Company Private Limited

     275,595        138,862       25,939        (447

Indeck Niles Development, LLC

     1,213,195        774,157       66,848        12,038  

PT. Cirebon Energi Prasarana

     3,513,290        2,808,470       102,858        (12,910

<Joint ventures>

          

Shuweihat Asia Power Investment B.V.

     138,760        (1     —          (311

KEPCO SPC Power Corporation

     285,683        27,204       68,405        5,890  

Datang Chifeng Renewable Power Co., Ltd.

     864,996        350,904       34,822        13,400  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     177,538        60,466       6,288        1,443  

Rabigh Electricity Company

     2,647,695        1,942,948       80,583        24,788  

Jamaica Public Service Company Limited

     2,348,315        1,517,195       311,625        13,354  

Amman Asia Electric Power Company

     746,108        368,455       5,407        8,521  

Chun-cheon Energy Co., Ltd.

     640,457        528,088       198,362        4,652  

Nghi Son 2 Power LLC

     3,642,768        2,826,647       151,734        3,240  

Kelar S.A.

     689,042        500,236       24,814        2,537  

PT. Tanjung Power Indonesia

     762,116        487,107       24,689        1,921  

South Jamaica Power Company Limited

     525,382        282,124       62,560        4,560  

RE Holiday Holdings LLC

     348,092        179,499       25,810        (555

RE Pioneer Holdings LLC

     262,956        154,084       18,738        (1,666

Solar Philippines Calatagan Corporation

     151,151        46,946       3,344        1,415  

PT Barito Wahana Tenaga

     460,698        3       —          16,386  

OneEnergy Asia Limited

     1,586,898        1,131,822       87,260        (11,361

Prime Swedish Holding AB

     81,856        149       —          (165

 

(*)

The profit for the three-month period ended March 31, 2023 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

 

62


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(4)

Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won                            

December 31, 2022

 

Investees

   Total assets      Total liabilities      Sales      Profit (loss) for
the year
 

<Associates>

           

Korea Gas Corporation (*)

   62,424,983        52,014,243        51,724,287        1,497,008  

YTN Co., Ltd.

     364,115        107,324        152,187        7,250  

Hyundai Green Power Co., Ltd.

     773,998        360,926        105,374        5,010  

Korea Power Exchange

     311,690        36,564        118,501        1,036  

SPC Power Corporation

     254,951        26,417        80,630        25,614  

Gemeng International Energy Co., Ltd.

     7,796,180        5,460,183        3,183,398        11,637  

PT. Cirebon Electric Power

     691,311        199,987        287,261        53,730  

PT Wampu Electric Power

     209,815        127,764        21,773        12,713  

PT. Bayan Resources TBK

     4,994,538        2,518,129        6,076,844        3,042,123  

S-Power Co., Ltd.

     937,067        646,411        1,091,425        37,104  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     1,371,292        904,907        174,693        61,020  

Goseong Green Power Co., Ltd.

     5,518,258        4,516,607        1,999,825        26,981  

Gangneung Eco Power Co., Ltd.

     4,907,872        4,900,408        435,755        (142,387

Shin Pyeongtaek Power Co., Ltd.

     1,203,406        839,568        957,062        100,554  

Dongducheon Dream Power Co., Ltd.

     1,521,089        1,219,018        2,240,175        43,072  

GS Donghae Electric Power Co., Ltd.

     2,130,287        1,365,156        1,053,112        46,226  

Nepal Water & Energy Development Company Private Limited

     241,061        141,199        70,923        (1,364

Indeck Niles Development, LLC

     1,178,303        762,139        302,041        (22,541

PT. Cirebon Energi Prasarana

     3,361,288        2,670,941        319,986        36,451  

<Joint ventures>

           

Shuweihat Asia Power Investment B.V.

     135,646        29        —          (2,660

KEPCO SPC Power Corporation

     267,904        29,082        253,145        44,751  

Datang Chifeng Renewable Power Co., Ltd.

     835,331        355,377        140,343        42,889  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     168,680        57,685        29,459        4,919  

Rabigh Electricity Company

     2,520,946        1,855,836        322,108        65,550  

Jamaica Public Service Company Limited

     2,310,611        1,515,361        1,499,897        69,458  

Amman Asia Electric Power Company

     759,885        392,795        28,665        39,090  

Chun-cheon Energy Co., Ltd.

     629,202        521,212        585,641        19,940  

Nghi Son 2 Power LLC

     3,652,801        2,835,123        589,023        102,436  

Kelar S.A.

     689,802        514,085        107,577        943  

PT. Tanjung Power Indonesia

     730,239        464,791        99,169        13,619  

South Jamaica Power Company Limited

     521,558        289,359        314,064        33,348  

RE Holiday Holdings LLC

     351,243        180,503        22,671        3,022  

RE Pioneer Holdings LLC

     263,232        152,888        15,701        369  

Solar Philippines Calatagan Corporation

     113,327        36,756        17,728        10,194  

PT Barito Wahana Tenaga

     447,688        —          —          49,471  

OneEnergy Asia Limited

     1,039,987        673,223        —          16,041  

Prime Swedish Holding AB

     77,942        114        —          (577

 

(*)

The profit for the year ended December 31, 2022 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

 

63


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won  

March 31, 2023

 

Investees

   Net assets      Percentage of
ownership (*)
    Share in
net assets
     Investment
differential
     Intercompany
transaction
    Others     Book
value
 

<Associates>

                 

Korea Gas Corporation

   10,603,651        20.47     2,170,567        —          —         (44,109     2,126,458  

YTN Co., Ltd.

     247,395        21.43     53,013        —          —         —         53,013  

Hyundai Green Power Co., Ltd.

     402,096        29.00     116,608        —          —         —         116,608  

Korea Power Exchange

     277,456        100.00     277,456        —          —         —         277,456  

SPC Power Corporation

     250,683        38.00     95,260        —          —         (18,963     76,297  

Gemeng International Energy Co., Ltd.

     2,466,061        34.00     838,461        —          —         (227,403     611,058  

PT. Cirebon Electric Power

     514,291        27.50     141,430        —          —         —         141,430  

PT Wampu Electric Power

     81,047        46.00     37,282        —          —         —         37,282  

PT. Bayan Resources TBK

     3,073,904        20.00     614,781        251,801        —         (76,379     790,203  

S-Power Co., Ltd.

     309,394        49.00     151,603        —          (1,266     —         150,337  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     474,936        25.00     118,734        305        (1,018     (289     117,732  

Goseong Green Power Co., Ltd.

     1,007,818        29.00     292,267        —          (1,242     —         291,025  

Gangneung Eco Power Co., Ltd.

     726,016        29.00     210,545        47,652        (502     —         257,695  

Shin Pyeongtaek Power Co., Ltd.

     418,395        40.00     167,358        3,559        (15,121     —         155,796  

Dongducheon Dream Power Co., Ltd.

     297,188        34.01     101,074        1,757        (2,520     (12,582     87,729  

GS Donghae Electric Power Co., Ltd.

     751,289        34.00     255,438        —          —         —         255,438  

Nepal Water & Energy Development Company Private Limited

     136,733        76.73     104,918        972        —         —         105,890  

Indeck Niles Development, LLC

     439,038        50.00     219,519        92,848        —         3,487       315,854  

PT. Cirebon Energi Prasarana

     704,820        10.00     70,482        —          —         —         70,482  

<Joint ventures>

                 

Shuweihat Asia Power Investment B.V.

     138,761        49.00     67,993        —          —         —         67,993  

KEPCO SPC Power Corporation

     258,479        75.20     194,376        —          —         —         194,376  

Datang Chifeng Renewable Power Co., Ltd.

     514,092        40.00     205,637        —          —         —         205,637  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     117,072        40.00     46,829        —          —         —         46,829  

Rabigh Electricity Company

     704,747        40.00     281,899        —          (49,397     (805     231,697  

Jamaica Public Service Company Limited

     831,120        40.00     332,448        29,357        —         (15,667     346,138  

Amman Asia Electric Power Company

     377,653        60.00     226,592        —          —         —         226,592  

Chun-cheon Energy Co., Ltd.

     112,369        29.90     33,598        3        —         (247     33,354  

Nghi Son 2 Power LLC

     816,121        50.00     408,061        —          —         —         408,061  

Kelar S.A.

     188,806        65.00     122,724        3,006        —         —         125,730  

PT. Tanjung Power Indonesia

     275,009        35.00     96,253        —          —         —         96,253  

South Jamaica Power Company Limited

     243,258        20.00     48,652        —          —         (3     48,649  

RE Holiday Holdings LLC

     168,593        50.00     84,297        —          —         —         84,297  

RE Pioneer Holdings LLC

     108,872        50.00     54,436        —          —         —         54,436  

Solar Philippines Calatagan Corporation

     104,205        38.00     39,598        —          —         15,850       55,448  

PT Barito Wahana Tenaga

     460,695        30.61     141,029        —          —         —         141,029  

OneEnergy Asia Limited

     455,076        40.00     182,030        25,513        —         —         207,543  

Prime Swedish Holding AB

     81,707        45.00     36,768        1,223        —         —         37,991  

 

(*)

The percentage of ownership shown above is after considering the treasury stocks and others.

 

64


Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won  

December 31, 2022

 

Investees

   Net assets      Percentage of
ownership (*)
    Share in
net assets
     Investment
differential
     Intercompany
transaction
    Others     Book
value
 

<Associates>

                 

Korea Gas Corporation

   10,410,740        20.47     2,131,078        —          —         (45,782     2,085,296  

YTN Co., Ltd.

     256,791        21.43     55,027        —          —         —         55,027  

Hyundai Green Power Co., Ltd.

     413,072        29.00     119,791        —          —         —         119,791  

Korea Power Exchange

     275,126        100.00     275,126        —          —         —         275,126  

SPC Power Corporation

     228,534        38.00     86,843        —          —         (15,975     70,868  

Gemeng International Energy Co., Ltd.

     2,335,997        34.00     794,239        —          —         (215,418     578,821  

PT. Cirebon Electric Power

     491,324        27.50     135,114        —          —         —         135,114  

PT Wampu Electric Power

     82,051        46.00     37,743        —          —         —         37,743  

PT. Bayan Resources TBK

     2,476,409        20.00     495,282        265,817        —         (76,380     684,719  

S-Power Co., Ltd.

     290,656        49.00     142,421        —          (1,293     —         141,128  

Xe-Pian Xe-Namnoy Power Co., Ltd.

     466,385        25.00     116,596        305        (1,028     (289     115,584  

Goseong Green Power Co., Ltd.

     1,001,651        29.00     290,479        —          (1,586     —         288,893  

Gangneung Eco Power Co., Ltd.

     7,464        1.61     120        —          (134     14       —    

Shin Pyeongtaek Power Co., Ltd.

     363,838        40.00     145,535        3,559        (15,271     —         133,823  

Dongducheon Dream Power Co., Ltd.

     302,071        34.01     102,734        1,757        (2,609     (12,582     89,300  

GS Donghae Electric Power Co., Ltd.

     765,131        34.00     260,145        —          —         —         260,145  

Nepal Water & Energy Development Company Private Limited

     99,862        69.06     68,968        972        —         —         69,940  

Indeck Niles Development, LLC

     416,164        50.00     208,082        93,956        —         —         302,038  

PT. Cirebon Energi Prasarana

     690,347        10.00     69,035        —          —         —         69,035  

<Joint ventures>

                 

Shuweihat Asia Power Investment B.V.

     135,617        49.00     66,452        —          —         —         66,452  

KEPCO SPC Power Corporation

     238,822        75.20     179,594        —          —         —         179,594  

Datang Chifeng Renewable Power Co., Ltd.

     479,954        40.00     191,982        —          —         —         191,982  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

     110,995        40.00     44,398        —          —         —         44,398  

Rabigh Electricity Company

     665,110        40.00     266,044        —          (50,632     (805     214,607  

Jamaica Public Service Company Limited

     795,250        40.00     318,100        29,357        —         (16,050     331,407  

Amman Asia Electric Power Company

     367,090        60.00     220,254        —          —         —         220,254  

Chun-cheon Energy Co., Ltd.

     107,990        29.90     32,289        3        —         (248     32,044  

Nghi Son 2 Power LLC

     817,678        50.00     408,839        —          —         —         408,839  

Kelar S.A.

     175,717        65.00     114,216        2,921        —         —         117,137  

PT. Tanjung Power Indonesia

     265,448        35.00     92,907        —          —         —         92,907  

South Jamaica Power Company Limited

     232,199        20.00     46,440        —          —         (3     46,437  

RE Holiday Holdings LLC

     170,740        50.00     85,370        —          —         —         85,370  

RE Pioneer Holdings LLC

     110,344        50.00     55,172        —          —         —         55,172  

Solar Philippines Calatagan Corporation

     76,571        38.00     29,097        —          —         27,805       56,902  

PT Barito Wahana Tenaga

     447,688        30.61     137,047        —          —         —         137,047  

OneEnergy Asia Limited

     366,764        40.00     146,706        25,512        —         —         172,218  

Prime Swedish Holding AB

     77,828        45.00     35,023        1,222        —         —         36,245  

 

(*)

The percentage of ownership shown above is after considering the treasury stocks and others.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(6)

As of March 31, 2023 and December 31, 2022, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Unrecognized
equity interest
     Accumulated
unrecognized
equity interest
     Unrecognized
equity interest
     Accumulated
unrecognized
equity interest
 

Eurasia Energy Holdings

   6        209        13        203  

Gunsan Bio Energy Co., Ltd.

     82        4,068        122        3,986  

Dayone Energy Co., Ltd.

     (3,347      23,670        3,565        27,017  

Nghi Son 2 Power LLC

     —          —          (18,940      —    

Samcheok Eco Materials Co., Ltd.

     128        934        344        806  

Naepo Green Energy Co., Ltd.

     18        14,974        7,209        14,956  

Barakah One Company

     36,004        129,977        51,137        93,973  

Pioneer Gas Power Limited

     8,889        65,766        19,248        56,877  

Incheon New Power Co., Ltd.

     —          —          (163      —    

Bigeum Resident Photovoltaic Power Co., Ltd.

     430        890        162        460  

KAPES, Inc.

     1,153        4,313        (355      3,160  

Chester Solar IV SpA

     —          —          (21      —    

ITR Co., Ltd.

     (5      —          5        5  

SEP Co., Ltd.

     —          14        14        14  

International Offshore Power Transmission

Holding Company Limited

     673        24,051        23,378        23,378  

Noeul Green Energy Co., Ltd.

     1,017        6,487        5,470        5,470  

Gangneung Eco Power Co., Ltd.

     (14      —          14        14  

 

(7)

As of March 31, 2023, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

 

  (i)

Gemeng International Energy Co., Ltd.

Gemeng International Energy Co., Ltd. issued put options on 8% of its shares to its financial investors, KEPCO Woori Sprott PEF (NPS Co-Pa PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Group provided a performance guarantee on this agreement.

 

  (ii)

Taebaek Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

 

  (iii)

Pyeongchang Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation.

 

  (iv)

Daeryun Power Co., Ltd.

The Group reserves the right to participate in the transfer of shares in Daeryun Power Co., Ltd. on the same terms as Daeryun E&S Co., Ltd., if Daeryun E&S Co., Ltd. wishes to transfer its shares in Daeryun Power Co., Ltd.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(7)

As of March 31, 2023, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

 

  (v)

Daegu Green Power Co., Ltd.

The Group has a right to purchase all the shares of Daegu Green Power Co., Ltd. held by the financial investors at the yield-based transfer amount agreed with the shareholders. The Group can exercise its right 5, 10 and 13 years after the date of the investment. Also, the Group has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.

 

  (vi)

Yeonggwang Wind Power Co., Ltd.

In case the Group intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is a non-controlling shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Group.

 

  (vii)

Chester Solar I SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

 

  (viii)

Chester Solar IV SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

 

  (ix)

Chester Solar V SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

 

  (x)

Diego de Almagro Solar SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

 

  (xi)

Laurel SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

 

  (xii)

Hyundai Green Power Co., Ltd.

As of March 31, 2023, the Group has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when the financial investors holding the shares (i.e., IBK and others) claim to sell the Group’s shares at a certain point of time in the future. The Group also has the right to request Hyundai Steel Company, another operating investor of Hyundai Green Power Co., Ltd., to sell its’ shares at a certain point of time in the future, and is obliged to sell the Group’s shares to Hyundai Steel Company or a third party designated by Hyundai Steel Company when Hyundai Steel Company requests the Group to sell its shares.

 

  (xiii)

Kosture Co., Ltd.

The Group acquires the shares with the settled amount of coal provided to Kosture Co., Ltd. every year until completion of the subscription set forth in the shareholders’ agreement.

 

  (xiv)

Omisan Wind Power Co., Ltd.

When the Group requests Unison Co., Ltd. to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares or transfer them to others at fair value.

 

  (xv)

Geumsungsan Wind Power Co., Ltd.

The Group has a right to purchase shares owned by Daemyung Energy Co., Ltd., within the range of 18%, for 3 years after the commencement of the operation.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(7)

As of March 31, 2023, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

 

  (xvi)

Seungmun Green Energy

According to the special conditions of the REC trading contract, a connected entity may demand the sale of ownership stakes held by other investors to the connected entity, or the investors may acquire new stakes or modify business documents through a capital increase in Seokmun Green Energy with prior written consent from the trustee. In the event that other investors sell their stakes to the connected entity, they may demand that the connected entity purchase their stakes in the future if certain conditions are met.

 

(8)

Significant restrictions on the Group’s abilities on associates and joint ventures as of March 31, 2023 are as follows:

 

Company

  

Nature and extent of any significant restrictions

Daegu Green Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.
Pyeongchang Wind Power Co., Ltd.    Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior consent of the stakeholders.
Daeryun Power Co., Ltd.    Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions. Shares cannot be wholly or partially transferred without prior consent of the majority of major stakeholders.
KNH Solar Co., Ltd.    Principals and interests on subordinated loans or dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without the consent of other shareholders.
Korea Power Engineering Service Co., Ltd.    Shares cannot be wholly or partially transferred without the consent of the board of directors.
Daehan Wind Power PSC    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Daejung Offshore Wind Power Co., Ltd.    Before the commencement of the operation, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Naepo Green Energy Co., Ltd.    Dividends can only be paid to shareholders when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred without prior consent of interested parties. All or part of the stocks held cannot be transferred without the written consent of the financial institution and if the conditions for the O&M utilization rate are not met or if a payment deferment is necessary due to the fulfillment of the obligation to provide funds, the contract amount will be paid in a subordinated order.
Solaseado Solar Power Co., Ltd.    Dividends can only be paid when all conditions of the shareholders’ agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Samcheok Eco Materials Co., Ltd.    Dividends can only be paid when all conditions of the shareholders’ agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Taebaek Guinemi Wind Power Co., Ltd.    Dividends can only be paid when all conditions of the shareholders’ agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Indeck Niles Asset Management, LLC    Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Indeck Niles Development, LLC    Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar IV SpA    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar V SpA    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Diego de Almagro Solar Spa    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Laurel SpA    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar I SpA    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Kelar S.A.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2023 are as follows, continued:

 

Company

  

Nature and extent of any significant restrictions

GS Donghae Electric Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Shinho Solar Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied.
Honam Wind Power Co., Ltd.    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied.
Seokmun Energy Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Chun-cheon Energy Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, principals and interests on subordinated loans shall not be paid until the payment conditions are satisfied.
Yeonggwangbaeksu Wind Power Co., Ltd.    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Yeonggwang Wind Power Co., Ltd.    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Jamaica Public Service Company Limited    Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
PT. Tanjung Power Indonesia    Dividends can only be paid when all conditions of the loan agreement are satisfied.
DE Energia SpA    Dividends can only be paid when all conditions of the loan agreement are satisfied.
Daesan Green Energy Co., Ltd.    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Taebaek Gadeoksan Wind Power Co., Ltd.    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when prior written consent of financial institutions is obtained.
Bitsolar Energy Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied.
Omisan Wind Power Co., Ltd.    Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, either of Omisan Wind Power Co., Ltd. and Unison Co., Ltd. shall not transfer their shares to others wholly or partially until 4 years have passed from the completion of power complex without the written consent from the other party. In case the shares of each party becomes less than 10% of outstanding shares after the transfer, it also requires the written consent from the other party.
Yangyang Wind Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Industrial Solar Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Kosture Co., Ltd.    Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Geumsungsan Wind Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred for 3 years after the commencement of operation, and also cannot be transferred or disposed to the third party in a way not permitted in the financial documents without prior written consent of an agent bank.
Daewon Green Energy Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Cheongju Eco Park Co., Ltd.    Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied, or permitted by related financing contracts, or prior written consent of financial institutions is obtained.
Goheung New Energy Co., Ltd.    Payment of dividends or repayment of loans such as subordinated loans to the investors can only be made when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Seungmun Green Energy    Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

18.

Property, Plant and Equipment

 

(1)

Property, plant and equipment as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Acquisition cost      Government
grants
    Accumulated
depreciation
    Accumulated
impairment
losses
    Book
value
 

Land

   14,360,953        (27,404     —         (27,990     14,305,559  

Buildings

     24,398,222        (49,169     (11,166,993     (6,941     13,175,119  

Structures

     83,819,069        (162,949     (33,210,608     (10,335     50,435,177  

Machinery

     110,117,937        (122,940     (55,328,007     (542,478     54,124,512  

Ships

     17,264        —         (4,235     —         13,029  

Vehicles

     394,456        (2,074     (313,661     (116     78,605  

Equipment

     2,179,989        (6,159     (1,773,114     (43     400,673  

Tools

     1,316,612        (89     (1,146,421     (6     170,096  

Construction-in-progress

     28,834,183        (144,864     —         (22,795     28,666,524  

Right-of-use assets

     6,005,447        —         (2,406,046     —         3,599,401  

Asset retirement costs

     17,555,779        —         (6,368,716     (146,423     11,040,640  

Others

     15,777,799        —         (13,357,406     —         2,420,393  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
    304,777,710        (515,648     (125,075,207     (757,127     178,429,728  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

In millions of won    December 31, 2022  
     Acquisition cost      Government
grants
    Accumulated
depreciation
    Accumulated
impairment
losses
    Book
value
 

Land

   14,298,409        (27,405     —         (27,472     14,243,532  

Buildings

     24,230,827        (50,437     (10,931,672     (6,955     13,241,763  

Structures

     83,055,890        (165,608     (32,596,265     (10,390     50,283,627  

Machinery

     108,749,243        (127,126     (54,015,594     (541,864     54,064,659  

Ships

     17,264        —         (3,788     —         13,476  

Vehicles

     393,046        (2,045     (305,242     (117     85,642  

Equipment

     2,168,348        (6,608     (1,732,564     (43     429,133  

Tools

     1,306,509        (99     (1,128,002     (6     178,402  

Construction-in-progress

     28,064,266        (135,926     —         (22,795     27,905,545  

Right-of-use assets

     5,992,724        —         (2,281,599     —         3,711,125  

Asset retirement costs

     17,620,603        —         (6,185,214     (146,422     11,288,967  

Others

     15,520,160        —         (13,100,723     —         2,419,437  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   301,417,289        (515,254     (122,280,663     (756,064     177,865,308  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

18.

Property, Plant and Equipment, Continued

 

(2)

Changes in property, plant and equipment for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
    Acquisition      Disposal     Depreciation     Impairment     Others     Ending
balance
 

Land

   14,270,937       —          (5,187     —         —         67,213       14,332,963  

(Government grants)

     (27,405     —          1       —         —         —         (27,404

Buildings

     13,292,200       717        (2,349     (234,135     —         167,855       13,224,288  

(Government grants)

     (50,437     —          —         1,264       —         4       (49,169

Structures

     50,449,235       458        (81,314     (729,911     —         959,658       50,598,126  

(Government grants)

     (165,608     —          312       2,400       —         (53     (162,949

Machinery

     54,191,785       98,173        (47,673     (1,511,654     (2,021     1,518,842       54,247,452  

(Government grants)

     (127,126     —          49       4,238       —         (101     (122,940

Ships

     13,476       —          —         (446     —         (1     13,029  

Vehicles

     87,687       298        (35     (9,844     —         2,573       80,679  

(Government grants)

     (2,045     —          —         208       —         (237     (2,074

Equipment

     435,741       12,882        (103     (48,527     —         6,839       406,832  

(Government grants)

     (6,608     —          —         449       —         —         (6,159

Tools

     178,501       5,830        (347     (19,234     —         5,435       170,185  

(Government grants)

     (99     —          —         10       —         —         (89

Construction-in-progress

     28,041,471       3,205,681        (10,728     —         —         (2,425,036     28,811,388  

(Government grants)

     (135,926     285        —         —         —         (9,223     (144,864

Right-of-use assets

     3,711,125       19,436        (1,142     (134,478     —         4,460       3,599,401  

Asset retirement costs

     11,288,967       —          —         (313,427     —         65,100       11,040,640  

Others

     2,419,437       420        —         (214,764     —         215,300       2,420,393  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   177,865,308       3,344,180        (148,516     (3,207,851     (2,021     578,628       178,429,728  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

18.

Property, Plant and Equipment, Continued

 

(2)

Changes in property, plant and equipment for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won    December 31, 2022  
     Beginning
balance
    Acquisition      Disposal     Depreciation     Impairment     Others     Ending
balance
 

Land

   14,107,965       9,535        (49,377     —         —         202,814       14,270,937  

(Government grants)

     (23,474     —          1       —         —         (3,932     (27,405

Buildings

     12,926,226       3,202        (19,918     (906,528     (449     1,289,667       13,292,200  

(Government grants)

     (52,122     —          —         5,360       —         (3,675     (50,437

Structures

     48,290,052       217,450        (277,308     (2,677,395     (3,669     4,900,105       50,449,235  

(Government grants)

     (172,021     —          1,250       9,568       —         (4,405     (165,608

Machinery

     51,755,382       248,932        (188,924     (5,748,407     (33,191     8,157,993       54,191,785  

(Government grants)

     (140,082     —          405       17,283       —         (4,732     (127,126

Ships

     177       —          —         (1,053     —         14,352       13,476  

Vehicles

     89,257       1,813        (88     (41,907     —         38,612       87,687  

(Government grants)

     (1,675     —          —         663       —         (1,033     (2,045

Equipment

     397,183       79,369        (183     (205,908     (1     165,281       435,741  

(Government grants)

     (149     —          —         494       —         (6,953     (6,608

Tools

     183,065       25,291        (180     (77,902     —         48,227       178,501  

(Government grants)

     (64     —          —         32       —         (67     (99

Construction-in-progress

     30,156,094       11,671,907        (197,293     —         134,735       (13,723,972     28,041,471  

(Government grants)

     (111,822     23,155        17       —         —         (47,276     (135,926

Right-of-use assets

     4,059,397       197,016        (2,838     (509,068     —         (33,382     3,711,125  

Asset retirement costs

     8,925,388       —          —         (1,133,866     —         3,497,445       11,288,967  

Others

     2,745,861       9,028        (22,531     (1,036,132     —         723,211       2,419,437  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   173,134,638       12,486,698        (756,967     (12,304,766     97,425       5,208,280       177,865,308  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(3)

The Group’s subsidiaries including Korea Hydro & Nuclear Power Co., Ltd. have recognized proceeds and costs from selling items produced before its intended use, by accounting 852 million and 94,264 million as revenue and 1,200 million and 63,405 million as expense in profit or loss for the three-month period ended March 31, 2023 and for the year ended December 31, 2022, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

19.

Investment Properties

 

(1)

Investment properties as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Acquisition
cost
     Government
grants
     Accumulated
depreciation
     Book
value
 

Land

   151,523        —          —          151,523  

Buildings

     20,662        (26      (6,910      13,726  
  

 

 

    

 

 

    

 

 

    

 

 

 
   172,185        (26      (6,910      165,249  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Acquisition
cost
     Government
grants
     Accumulated
depreciation
     Book
value
 

Land

   194,417        —          —          194,417  

Buildings

     20,241        (21      (6,351      13,869  
  

 

 

    

 

 

    

 

 

    

 

 

 
   214,658        (21      (6,351      208,286  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(2)

Changes in investment properties for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
    Disposal     Depreciation     Others     Ending
balance
 

Land

   194,417       —         —         (42,894     151,523  

Buildings

     13,890        —          (123     (15     13,752  

(Government grants)

     (21     —         —         (5     (26
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   208,286       —         (123     (42,914     165,249  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

In millions of won    December 31, 2022  
     Beginning
balance
    Disposal     Depreciation     Others     Ending
balance
 

Land

   201,605       (208     —         (6,980     194,417  

Buildings

     11,209       —         (487        3,168       13,890  

(Government grants)

     (30     —         1       8       (21
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   212,784       (208     (486     (3,804     208,286  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

19.

Investment Properties, Continued

 

(3)

Income and expenses related to investment properties for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Rental income

   2,501        2,537  

Operating and maintenance expenses related to rental income

     (116      (101
  

 

 

    

 

 

 
   2,385        2,436  
  

 

 

    

 

 

 

 

(4)

Fair value of investment properties as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Book value      Fair value      Book value      Fair value  

Land

   151,523        222,449        194,417        292,827  

Buildings

     13,726        14,784        13,869        15,626  
  

 

 

    

 

 

    

 

 

    

 

 

 
   165,249        237,233        208,286        308,453  
  

 

 

    

 

 

    

 

 

    

 

 

 

The Group determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Group. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined in consideration of the fluctuation on the publicly announced individual land price after the KIFRS transition date (January 1, 2010).

 

(5)

All of the Group’s investment properties are held under freehold interests.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

20.

Construction Contracts

 

(1)

Changes in total contract amount in which revenue is not yet recognized for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Increase
(decrease) (*)
     Recognized
as
revenue
     Ending
balance
 

Nuclear power plant construction in overseas and others

   5,594,946             83,999        (119,520      5,559,425  

 

(*)

For the three-month period ended March 31, 2023, the increased balance of contracts from new orders is 128,052 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is 44,053 million.

 

In millions of won    December 31, 2022  
     Beginning
balance
     Increase
(decrease) (*)
     Recognized
as
revenue
     Ending
balance
 

Nuclear power plant construction in overseas and others

   2,783,935        3,457,964        (646,953      5,594,946  

 

(*)

For the year ended December 31, 2022, the increased balance of contracts from new orders is 3,578,599 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is 81,401 million

 

(2)

Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Accumulated
earned revenue
     Accumulated
expense
     Accumulated
profit
     Unearned
advance receipts
 

Nuclear power plant construction in overseas and others

   22,526,745        21,735,863        790,882        29,701  

 

In millions of won    December 31, 2022  
     Accumulated
earned revenue
     Accumulated
expense
     Accumulated
profit
     Unearned
advance receipts
 

Nuclear power plant construction in UAE and others

   22,507,004        21,666,552        840,452        29,877  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

20.

Construction Contracts, Continued

 

(3)

Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Contract
assets (*1)
     Contract
liabilities (*2)
     Contract
assets (*1)
     Contract
liabilities (*2)
 

Nuclear power plant construction in overseas and others

   145,758        118,960        118,983        120,952  

 

(*1)

Included in trade and other receivables, net, in the consolidated statements of financial position.

(*2)

Included in non-financial liabilities as advance received in the consolidated statements of financial position. The revenue recognized on March 31, 2023 from the amounts included in contract liabilities at the end of the prior year is 54,604 million.

 

(4)

The contracts with purchasers state that the disclosure of information related to UAE and Egypt Eldaba nuclear power plant construction projects such as contract date, contractual completion date, rate of progress, unbilled construction, impairment losses, etc. is not allowed without consent from the purchasers. The purchasers did not agree to disclose such information. Accordingly, the Group did not disclose such information based on KIFRS 1115 129.2(2) as it is probable that the purchasers may file a lawsuit for breach of contract if the Group does so. Also, the Group reported to the audit committee that those items will not be disclosed in the notes to the consolidated financial statements.

 

     Contract date      Completion date  

Egypt Eldaba nuclear power plant construction projects

     2022.08.25        2029.04.08  

 

(5)

Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the three-month period ended March 31, 2023 are as follows:

 

In millions of won   March 31, 2023  
    Effect from changes in accounting estimates     Contract assets from
construction contracts
    Trade receivables from
construction contracts
 
    Expected
loss on
construction
contracts
    Changes in
estimates
of contract
revenue
and costs
    Amounts
recognized
in current
profit or
loss
    Amounts
recognized
in future
profit or
loss
    Changes in
estimated total
contract costs
    Revenue
recognized from
performance
obligations satisfied
in previous periods
    Gross     Allowance
for
doubtful
accounts
    Gross     Allowance
for
doubtful
accounts
 

Transmission and distribution

  —         (49,895     (50,239     344       144,574       —         17,558       —         —         —    

Electric power generation (Nuclear)

    —         —         —         —         —         —         8,147       —         —         —    

Plant maintenance & engineering service

    1,817       14,535       10,229       4,306       14,636       18,688       93,550       2       49,172       5,433  

Others

    —         —         —         —         —         —         26,503       —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,817       (35,360     (40,010     4,650       159,210       18,688       145,758       2       49,172       5,433  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

21.

Intangible Assets other than Goodwill

 

(1)

Intangible assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Acquisition cost      Government
grants
    Accumulated
amortization
    Accumulated
impairment
losses
    Book
value
 

Software

   1,009,836        (174     (820,717     (19     188,926  

Copyrights, patents rights and other industrial rights

     105,253        —         (68,921     (9,177     27,155  

Mining rights

     639,829        —         (53,536     (550,674     35,619  

Development expenditures

     946,145        (3,137     (890,259     —         52,749  

Intangible assets under development

     81,276        (2,191     —         (8,904     70,181  

Usage rights of donated assets and others

     592,783        —         (438,400     (133     154,250  

Leasehold rights

     28,185        —         (23,536     —         4,649  

Greenhouse gas emissions rights

     66,997        —         —         —         66,997  

Others

     568,902        (66     (181,410     (12,238     375,188  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   4,039,206        (5,568     (2,476,779     (581,145     975,714  

 

In millions of won    December 31, 2022  
     Acquisition cost      Government
grants
    Accumulated
amortization
    Accumulated
impairment
losses
    Book
value
 

Software

   1,002,040        (174     (799,013     (20     202,833  

Copyrights, patents rights and other industrial rights

     104,559        —         (67,368     (9,178     28,013  

Mining rights

     625,845        —         (46,187     (541,133     38,525  

Development expenditures

     938,032        (3,477     (883,527     —         51,028  

Intangible assets under development

     76,625        (2,108     —         (8,903     65,614  

Usage rights of donated assets and others

     592,797        —         (435,518     (136     157,143  

Leasehold rights

     28,185        —         (23,297     —         4,888  

Greenhouse gas emissions rights

     43,960        —         —         —         43,960  

Others

     551,396        (67     (174,714     (11,955     364,660  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   3,963,439        (5,826     (2,429,624     (571,325     956,664  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

21.

Intangible Assets other than Goodwill, Continued

 

(2)

Changes in intangible assets for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
    Acquisition      Disposal     Amortization     Impairment     Others     Ending
balance
 

Software

   203,007       2,721        —         (21,149     —         4,521       189,100  

(Government grants)

     (174     —          —         22       —         (22     (174

Copyrights, patents rights and other industrial rights

     28,013       104        (57     (1,363     —         458       27,155  

Mining rights

     38,525       1,243        —         (4,197     —         48       35,619  

Development expenditures

     54,505       —          —         (6,042     —         7,423       55,886  

(Government grants)

     (3,477     —          —         340       —         —         (3,137

Intangible assets under development

     67,722       12,712        —         —         —         (8,062     72,372  

(Government grants)

     (2,108     —          —         —         —         (83     (2,191

Usage rights of donated assets and others

     157,143       —          —         (2,622     —         (271     154,250  

Leasehold rights

     4,888       —          —         (239     —         —         4,649  

Greenhouse gas emissions rights

     43,960       9,498        —         —         —         13,539       66,997  

Others

     364,727       2,046        (1     (6,161     (283     14,926       375,254  

(Government grants)

     (67     —          —         1       —         —         (66
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   956,664       28,324        (58     (41,410     (283     32,477       975,714  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
In millions of won    December 31, 2022  
     Beginning
balance
    Acquisition      Disposal     Amortization     Impairment     Others     Ending
balance
 

Software

   162,596       22,532        (57     (84,649     —         102,585       203,007  

(Government grants)

     (91     —          —         60       —         (143     (174

Copyrights, patents rights and other industrial rights

     35,187       270        (37     (7,136     —         (271     28,013  

Mining rights

     41,902       2,395        —         (4,296     —         (1,476     38,525  

Development expenditures

     72,944       —          —         (24,238     —         5,799       54,505  

(Government grants)

     (3,820     —          —         1,466       —         (1,123     (3,477

Intangible assets under development

     81,430       39,559        —         —         (14     (53,253     67,722  

(Government grants)

     (7,326     —          —         —         —         5,218       (2,108

Usage rights of donated assets and others

     169,783       —          —         (11,394     (150     (1,096     157,143  

Leasehold rights

     5,848       —          —         (960     —         —         4,888  

Greenhouse gas emissions rights

     78,137       57,466        —         —         —         (91,643     43,960  

Others

     407,558       4,073        (260     (25,017     —         (21,627     364,727  

(Government grants)

     (71     —          —         4       —         —         (67
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   1,044,077       126,295        (354     (156,160     (164     (57,030     956,664  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

78


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

21.

Intangible Assets other than Goodwill, Continued

 

(3)

Significant specific intangible assets as of March 31, 2023 and December 31, 2022 are as follows:

In millions of won and thousands of Australian dollars

March 31, 2023

Type

  

Description

   Currency      Amount     

Remaining useful lives

Software

  

ORACLE license for SDIS integrated DB

     KRW        5,169      3 years and 1 month

Copyrights, patents rights and other industrial rights

  

Contributions to APR NRC DC

     KRW        19,828      4 years and 9 months

Mining rights

  

Mining rights of Bylong mine

     AUD        —        —  (*)

Usage rights of donated assets and others

  

Sejong Haengbogdosi sharing charge

     KRW        16,638      3 years and 8 months
  

Right of use electricity and gas supply facility (Community district of Songdo)

     KRW        7,644      7 years and 3 months

Others

  

Occupancy and use of public waters

     KRW        74,859      13 years and 10 months
  

Greenhouse gas emissions rights

     KRW        66,997      —  
  

Business rights

     KRW        153,275      26 years and 8 months
           

 

(*)

The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

 

In millions of won and thousands of Australian dollars

December 31, 2022

Type

  

Description

   Currency      Amount     

Remaining useful lives

Software

  

ORACLE license for SDIS integrated DB

     KRW        5,509      3 years and 4 months

Copyrights, patents rights and other industrial rights

  

Contributions to APR NRC DC

     KRW        20,871      5 years

Mining rights

  

Mining rights of Bylong mine

     AUD        —        —  (*)

Usage rights of donated assets and others

  

Sejong Haengbogdosi sharing charge

     KRW        17,772      3 years and 11 months
  

Right of use electricity and gas supply facility (Community district of Songdo)

     KRW        7,908      7 years and 6 months

Others

  

Occupancy and use of public waters

     KRW        76,212      14 years and 1 month
  

Greenhouse gas emissions rights

     KRW        43,960      —  
  

Business rights

     KRW        154,712      26 years and 11 months
           
           

 

(*)

The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

 

(4)

For the three-month periods ended March 31, 2023 and 2022, the Group recognized research and development expenses of 151,886 million and 146,726 million, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

22.

Trade and Other Payables

Trade and other payables as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Trade payables

   6,777,948        —          7,529,857        —    

Non-trade payables

     1,334,182        2,048,381        2,132,838        2,023,985  

Accrued expenses

     1,651,273        6,067        1,605,118        6,351  

Leasehold deposits received

     3,273        35        2,479        35  

Other deposits received

     100,488        47,561        97,408        47,863  

Lease liabilities

     669,148        3,436,984        614,037        3,549,106  

Dividends payable

     44,647        —          1,812        —    

Others (*)

     —          12,611        —          11,574  
  

 

 

    

 

 

    

 

 

    

 

 

 
   10,580,959        5,551,639        11,983,549        5,638,914  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Details of others as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Advance received from local governments

   —          3,477        —          3,477  

Others

     —          9,134        —          8,097  
  

 

 

    

 

 

    

 

 

    

 

 

 
   —          12,611        —          11,574  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities

 

(1)

Borrowings and debt securities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Current liabilities

     

Short-term borrowings

   5,921,543        8,820,425  

Current portion of long-term borrowings

     4,855,673        3,638,202  

Current portion of debt securities

     11,287,323        10,205,395  

Less: Current portion of discount on long-term borrowings

     (1,119      (774

Less: Current portion of discount on debt securities

     (5,642      (4,246
  

 

 

    

 

 

 
     22,057,778        22,659,002  
  

 

 

    

 

 

 

Non-current liabilities

     

Long-term borrowings

     3,070,570        2,977,268  

Debt securities

     101,403,951        95,160,920  

Less: Discount on long-term borrowings

     (38,575      (14,945

Less: Discount on debt securities

     (173,395      (177,543

Add: Premium on debt securities

     578        663  
  

 

 

    

 

 

 
     104,263,129        97,946,363  
  

 

 

    

 

 

 
   126,320,907        120,605,365  
  

 

 

    

 

 

 

 

(2)

Repayment schedule of borrowings and debt securities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won              

March 31, 2023

 

Type

   Borrowings      Debt Securities  

Less than 1 year

   10,777,216        11,287,323  

1~ 5 years

     1,277,412        73,281,386  

Over 5 years

     1,793,158        28,122,565  
  

 

 

    

 

 

 
   13,847,786        112,691,274  
  

 

 

    

 

 

 

 

In millions of won              

December 31, 2022

 

Type

   Borrowings      Debt Securities  

Less than 1 year

   12,458,627        10,205,395  

1~ 5 years

     1,472,655        65,278,587  

Over 5 years

     1,504,613        29,882,333  
  

 

 

    

 

 

 
   15,435,895        105,366,315  
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(3)

Short-term borrowings as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won and thousands of foreign currencies  

March 31, 2023

 

Type

 

Creditor

  

Interest rate (%)

  

Maturity

   Foreign
currency
     Local
currency
 

Local short-term borrowings

 

DB financial investment and others

   3.31~4.60    2023.04.04~2023.12.31      —        2,410,384  

Local short-term borrowings

 

Nonghyup Bank and others

   3M CD + 1.11~1.70    2023.05.25~2023.11.24      —          3,000,000  

Foreign short-term borrowings

 

Korea Development Bank

                         5.63                           2023.08.23      USD 42,715        55,692  

Foreign short-term borrowings

 

Kookmin Bank

   5.87~5.90    2023.06.12~2023.09.05      USD 72,470        94,486  

Foreign short-term borrowings

 

Export-Import Bank of Korea

   5.72    2023.08.24      USD 37,451        48,829  

Foreign short-term borrowings

 

Kookmin Bank

   SOFR(1M) + 0.95    2023.08.17      USD 40,000        52,152  

Electronic short-term bonds

 

DB financial investment and others

   3.81~3.87    2023.05.09~2023.05.23      —          260,000  
             

 

 

 
              5,921,543  
             

 

 

 

 

In millions of won and thousands of foreign currencies  

December 31, 2022

 

Type

 

Creditor

  

Interest rate (%)

  

Maturity

   Foreign
currency
     Local
currency
 

Local short-term borrowings

 

DB financial investment and others

   3.21~5.80    2023.01.02~2023.12.31      —        5,549,120

Local short-term borrowings

 

Nonghyup Bank and others

   3M CD + 1.11~1.70    2023.05.25~2023.11.24      —          3,000,000

Local short-term borrowings

 

Shinhan Bank

   6M Bank Debenture Rate + 1.77    2023.11.17      —          50,000

Local short-term borrowings

 

Korea Development Bank

   4.15    2023.01.06      —          3,400

Foreign short-term borrowings

 

Shinhan Bank

   5.19    2023.02.28      USD 12,045        15,264

Foreign short-term borrowings

 

Shinhan Bank

   SOFR(1M) + 0.65    2023.02.27      USD 40,000        50,692

Foreign short-term borrowings

 

Kookmin Bank and others

   3.32~5.88    2023.01.09~2023.06.12      USD 91,796        116,333

Local bank overdraft

 

Woori Bank and others

  

Standard overdraft rate + 1.32

4.83

   2023.01.06~2023.02.24      —          35,616
             

 

 

 
              8,820,425  
             

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won and thousands of foreign currencies  

March 31, 2023

 

Type

   Interest rate (%)    Maturity    Foreign
currency
     Local
currency
 
                         

Local long-term borrowings

 

Korea Development Bank

   Others    0.50    2023~2044      —        2,039  
   Facility    2.50~4.94    2023~2042      —          38,540  
   Facility    CB rate+0.90    2029      —          9,985  
   Operating funds    1yr KDB rate+0.91    2024      —          40,000  

Hana Bank and others

   Commercial Paper    3M CD+0.13~1.20    2023~2028      —          4,500,000  
   Facility    4.60    2028      —          7,749  
   Facility    3yr KTB rate-2.50    2028      —          3,655  

Export-Import Bank of Korea

   Project loans    1.50    2026      —          10,312  
   Facility    1.32    2024~2028      —          71,965  

Korea Energy Agency

   Development of power resources    3yr KTB rate-2.25

2.50

   2023~2028      —          10,503  
   Facility    3yr KTB rate-1.50    2024      —          331  
   Project loans    —      2033      —          1,197  

Shinhan Bank and others

   Facility    CB rate+0.90~1.10    2028~2029      —          18,613  
   Commercial Paper    3M CD+0.38    2025      —          150,000  
   Others    3.95    2034      —          77,554  
   Others    Standard overdraft
rate+1.00
   2034      —          77,554  

Kookmin Bank

   Facility    MOR+0.79
3M CD+1.79
5.04~5.70
   2023~2035      —          105,474  
   Facility    4.00    2025~2044      —          30,000  

Woori Bank

   Facility    3M Libor+1.90
5.04~5.63
   2034~2042      —          82,910  

Others

   Facility    3.50~6.80    2028~2044      —          635,969  
   Facility    CB rate+1.10
1.75~3.30
   2024~2029      —          55,809  
   PF Refinancing    CB rate+1.25    2030      —          7,396  
   PF Refinancing    4.10    2030      —          20,544  
   Securitized debts (*)    3M CD+1.80    2025      —          41,921  
   Others    4.40~7.90    2025~2039      —          114,220  
   Others    1.80~7.24    2031~2034      —          49,929  
              

 

 

 
                 6,164,169  
              

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won and thousands of foreign currencies  

March 31, 2023

 

Type

  

Interest rate (%)

   Maturity      Foreign
currency
     Local
currency
 
                           

Foreign long-term borrowings

        

Korea Energy Agency

   Project loans    —        2026      USD 8,744        11,400  

Export-Import Bank of Korea and others

   Direct Loan and others    6M Libor+3.20      2036      USD 83,379        108,710  
   Direct Loan and others    3M Libor+2.25~3.70      2027      JOD 91,014        167,286  
   Facility    6M Libor+1.70~2.50
SOFR(1M)+1.83
     2029~2032      USD 128,600        167,669  

Korea Development Bank and others

   EBL    SOFR(1M)+0.11~0.75      2024      USD 155,200        202,350  

POSCO and others

   Shareholder’s loan    4.60~8.00      2023~2025      USD 14,005        18,260  
   Shareholder’s loan    8.00      2031      JOD 4,853        8,920  

Samsung Life Insurance and others

   Syndicated Loan    3.10~8.00      2032      JPY 4,424,118        43,420  

Woori Bank and others

   Syndicated Loan    JPY 6M Libor+1.84      2032      JPY 2,423,871        23,789  

Solar Construction Lendings, LLC

   Facility    5.00      2025      USD 30,741        40,080  

KiwoomSolar Power Professional Investor Private Placement Investment Trust V

   Senior borrowing    3.90      2029      EUR 41,013        58,301  

IFC and others

   Facility    6M Libor+5.00
SOFR(3M)+1.99
5.41~6.19
     2028~2031      USD 455,138        593,409  

Hanwha US Solar Private Fund and others

   Facility    3.00      2038      USD 59,539        77,627  

DBS Bank and others

   Facility    1M BBSY+1.40~2.25      2025      AUD 189,012        165,307  

Nonghyup Bank and others

   Facility    5.20      2039      USD 57,944        75,546  
              

 

 

 
                 1,762,074  
              

 

 

 
                 7,926,243  

Less: Discount on long-term borrowings

           (39,694

Less: Current portion of long-term borrowings

           (4,855,673

Add: Current portion of discount on long-term borrowings

           1,119  
              

 

 

 
      3,031,995  
        

 

 

 

 

(*)

The main reasons for early repayment of securitized debts as of March 31, 2023 are as follows:

 

Type

 

Details

Non-payment of proceeds   Where the consignor fails to pay the principal to the trustee
Guarantees for supplemental funding   Where the consignor fails to fulfill guarantees for supplemental funding
Additional trust obligation   Where the consignor fails to fulfill the additional trust obligation
Event of default   In case the event of default occurs under the ABL loan agreement

The consolidated entity is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won and thousands of foreign currencies  

December 31, 2022

 

Type

  

Interest rate (%)

   Maturity      Foreign
currency
     Local
currency
 
                           

Local long-term borrowings

 

Korea Development Bank

   Others    0.50      2023~2044        —        2,133  
   Facility    2.50~4.60      2023~2028        —          28,420  
   Facility    CB rate+0.90      2029        —          9,985  
   Operating funds   

1yr KDB rate

+0.81~0.91

     2023~2024        —          54,300  

Hana Bank and others

   Commercial Paper    3M CD+0.13~1.20      2023~2027        —          3,250,000  
   Facility    4.60      2028        —          8,137  
   Facility    3yr KTB rate-1.50      2028        —          3,821  

Export-Import Bank of Korea

   Project loans    1.50      2026        —          10,312  
   Facility    1.32      2028        —          58,100  
   Operating funds    1.78      2023        —          15,700  

Korea Energy Agency

   Development of power resources   

3yr KTB rate-2.25

1.50~1.75

     2023~2028        —          11,175  
   Facility    3yr KTB rate-2.50      2023~2024        —          393  
   Project loans    —        2023~2027        —          1,197  

Shinhan Bank and others

   Facility    CB rate+0.90~1.10      2028~2029        —          19,195  
   Commercial Paper    3M CD+0.38      2025        —          150,000  
   Others    3.95      2034        —          78,905  
   Others    Standard overdraft rate+1.00      2034        —          78,905  

Kookmin Bank

   Facility    MOR+0.79
3M CD+1.79
5.04
     2023~2035        —          105,155  
   Others    4.00      2025        —          20,700  

Woori Bank

   Facility    3M Libor+1.90
5.04
     2035~2042        —          48,823  

Others

   Facility    3.50~6.80      2028~2044        —          690,259  
   Facility    CB rate+1.10
1.75~4.56
     2024~2036        —          103,131  
   PF Refinancing    CB rate+1.25      2030        —          7,634  
   PF Refinancing    4.10      2030        —          21,206  
   Securitized debts (*)    3M CD+1.80      2025        —          33,476  
   Others    4.40~7.90      2023~2039        —          120,217  
   Others    1.80~4.50      2031~2034        —          49,929  
     

 

 

 
                 4,981,208  
     

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won and thousands of foreign currencies

December 31, 2022

 

Type

   Interest rate (%)    Maturity    Foreign
currency
     Local
currency
 
                              

Foreign long-term borrowings

        

Korea Energy Agency

   Project loans    —      2026    USD 8,744        11,081  

Export-Import Bank of Korea and others

   Direct Loan and others    6M Libor+3.20    2036    USD 78,094        98,969  
   Direct Loan and others    3M Libor+2.25~3.70    2027    JOD 91,051        162,692  
   Facility    6M Libor+1.70~2.50
SOFR(1M)+1.83
   2029~2032    USD 132,168        167,496  

Kookmin Bank and others

   EBL    SOFR(1M)+0.11~0.75    2024    USD 149,592        189,578  

Riyad Bank

   EBL    SOFR(3M)+1.20    2025    USD 49,870        63,201  

POSCO and others

   Shareholder’s loan    8.00    2025    USD 10,005        12,680  
   Shareholder’s loan    8.00    2031    JOD 4,853        8,671  

Samsung Life Insurance and others

   Syndicated Loan    3.10~8.00    2032    JPY 4,752,934        45,304  

Woori Bank and others

   Syndicated Loan    JPY 6M Libor+1.84    2032    JPY 2,613,385        24,910  

Solar Construction Lendings, LLC

   Facility    5.00    2025    USD 31,140        39,464  

KiwoomSolar Power Professional Investor Private Placement Investment Trust V

   Senior borrowing    3.90    2029    EUR 40,531        54,765  

IFC and others

   Facility    6M Libor+5.00
SOFR(3M)+1.83~1.99
5.41~6.19
   2028~2031    USD 408,408        517,575  

Hanwha US Solar Private Fund and others

   Facility    3.00    2038    USD 58,308        73,894  

DBS Bank and others

   Facility    1M BBSY+1.40~2.25    2025    AUD 190,860        163,836  

Others

   Others    —      —      USD 116        146  
              

 

 

 
                 1,634,262  
              

 

 

 
                 6,615,470  

Less: Discount on long-term borrowings

        (15,719

Less: Current portion of long-term borrowings

        (3,638,202

Add: Current portion of discount on long-term borrowings

        774  
              

 

 

 
      2,962,323  
              

 

 

 

 

(*)

The main reasons for early repayment of securitized debts as of December 31, 2022 are as follows:

 

Type

 

Details

Non-payment of proceeds   Where the consignor fails to pay the principal to the trustee
Guarantees for supplemental funding   Where the consignor fails to fulfill guarantees for supplemental funding
Additional trust obligation   Where the consignor fails to fulfill the additional trust obligation
Event of default   In case the event of default occurs under the ABL loan agreement

The consolidated entity is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(5)

Local debt securities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won                      
     Issue date      Maturity      Interest rate (%)      March 31, 2023     December 31, 2022  

Electricity Bonds

     2012.03.27~2023.03.30        2023.04.19~2052.04.21        1.14~5.99      68,030,000       61,190,000  

Corporate Bonds (*)

     2009.10.16~2023.03.07        2023.04.05~2052.08.24        1.01~6.06        29,363,153       29,293,188  

Corporate Bonds

     2021.05.26        2041.05.25        2.50        11,578       11,578  
           

 

 

   

 

 

 
              97,404,731       90,494,766  

Less: Discount on local debt securities

 

        (56,543     (56,924

Less: Current portion of local debt securities

 

     (9,161,584     (8,401,619

Add: Current portion of discount on local debt securities

 

     2,807       2,344  
           

 

 

   

 

 

 
            88,189,411       82,038,567  
           

 

 

   

 

 

 

 

(*)

Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to 1,584 million, may exercise the early redemption rights on the 5th year (March 31, 2021) from the date of issuance of the bonds and every year on March 31 thereafter, until the year before the redemption date.

 

(6)

Foreign debt securities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won and thousands of foreign currencies              

March 31, 2023

 

Type

   Issue date    Maturity    Interest
rate (%)
   Foreign
currency
     Local
currency
 

FY-96

   1996.04.01~1996.12.06    2026.12.01~2096.04.01    6.00~7.95    USD  278,701      363,370  

FY-97

   1997.01.31~1997.08.04    2027.02.01~2027.08.01    6.75~7.00    USD  314,717        410,328  

FY-04

   2004.04.23    2034.04.23    5.13    USD  286,920        374,086  

FY-14

   2014.07.30    2029.07.30    3.57    USD  100,000        130,380  

FY-15

   2015.06.15    2025.06.15    3.25    USD  300,000        391,140  

FY-17

   2017.07.25    2027.07.25    3.13    USD  300,000        391,140  

FY-17

   2017.10.30    2037.10.30    1.70    EUR  40,000        56,861  

FY-17

   2017.11.16    2037.11.16    2.36    SEK  450,000        56,615  

FY-18

   2018.03.13    2028.03.13    3.35    HKD   1,650,000        274,049  

FY-18

   2018.06.07~2018.07.25    2023.06.07~2023.07.25    3.75~3.88    USD  1,400,000        1,825,320  

FY-19

   2019.02.27    2024.02.27    0.13    CHF  200,000        285,482  

FY-19

   2019.06.24    2024.06.24    2.50    USD  500,000        651,900  

FY-19

   2019.07.19    2024.07.19~2027.07.19    0.00~0.05    CHF  300,000        428,223  

FY-19

   2019.10.30    2024.10.30    3M BBSW+0.97    AUD  300,000        262,377  

FY-19

   2019.12.19    2037.12.31    3.30~5.70    USD  349,034        455,070  

FY-20

   2020.02.03    2025.02.03    2.13    USD 300,000        391,140  

FY-20

   2020.05.06    2025.05.06    1.75    USD 500,000        651,900  

FY-20

   2020.06.15    2025.06.15    1.13    USD 500,000        651,900  

FY-20

   2020.08.03    2026.02.03    1.00    USD 300,000        391,140  

FY-21

   2021.01.27    2026.01.27    0.75    USD 450,000        586,710  

FY-21

   2021.04.27    2026.04.27    1.25    USD 500,000        651,900  

FY-21

   2021.08.09    2026.08.09    1.25    USD 300,000        391,140  

FY-21

   2021.09.24    2026.09.24    1.13    USD 300,000        391,140  

FY-22

   2022.04.21    2027.04.21    3.63    USD 300,000        391,140  

FY-22

   2022.05.06    2025.05.06    3.60    USD 500,000        651,900  

FY-22

   2022.06.14    2025.06.14~2027.06.14    3.63~4.00    USD 800,000        1,043,040  

FY-22

   2022.06.28    2025.06.28    4.13    USD 300,000        391,140  

FY-22

   2022.07.27    2027.07.27    4.25    USD 700,000        912,660  

FY-22

   2022.10.06    2026.04.06~2028.04.06    5.38~5.50    USD 800,000        1,043,040  

FY-22

   2022.10.06~2022.11.01    2032.10.06    5.16    HKD  2,350,000        390,312  
              

 

 

 
                 15,286,543  

Less: Discount on foreign debt securities

 

     (122,494

Add: Premium on foreign debt securities

 

     578  

Less: Current portion of foreign debt securities

 

     (2,125,739

Add: Current portion of discount on foreign debt securities

 

     2,835  
              

 

 

 
               13,041,723  
              

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(6)

 Foreign debt securities as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won and thousands of foreign currencies              

December 31, 2022

 

Type

   Issue date    Maturity    Interest rate (%)    Foreign
currency
     Local
currency
 

FY-96

   1996.04.01~1996.12.06    2026.12.01~2096.04.01    6.00~7.95    USD 278,701      353,198  

FY-97

   1997.01.31~1997.08.04    2027.02.01~2027.08.01    6.75~7.00    USD 314,717        398,841  

FY-04

   2004.04.23    2034.04.23    5.13    USD 286,920        363,614  

FY-14

   2014.07.30    2029.07.30    3.57    USD 100,000        126,730  

FY-15

   2015.06.15    2025.06.15    3.25    USD 300,000        380,190  

FY-17

   2017.07.25    2027.07.25    3.13    USD 300,000        380,190  

FY-17

   2017.10.30    2037.10.30    1.70    EUR 40,000        54,048  

FY-17

   2017.11.16    2037.11.16    2.36    SEK 450,000        54,527  

FY-18

   2018.03.13    2028.03.13    3.35    HKD  1,650,000        268,208  

FY-18

   2018.06.07~2018.07.25    2023.06.07~2023.07.25    3.75~3.88    USD 1,400,000        1,774,220  

FY-19

   2019.02.27    2024.02.27    0.13    CHF 200,000        274,574  

FY-19

   2019.06.24    2024.06.24    2.50    USD 500,000        633,650  

FY-19

   2019.07.19    2024.07.19~2027.07.19    0.00~0.05    CHF 300,000        411,861  

FY-19

   2019.10.30    2024.10.30    3M BBSW+0.97    AUD 300,000        257,523  

FY-19

   2019.12.19    2037.12.31    3.30~5.70    USD 360,899        457,368  

FY-20

   2020.02.03    2025.02.03    2.13    USD 300,000        380,190  

FY-20

   2020.05.06    2025.05.06    1.75    USD 500,000        633,650  

FY-20

   2020.06.15    2025.06.15    1.13    USD 500,000        633,650  

FY-20

   2020.08.03    2026.02.03    1.00    USD 300,000        380,190  

FY-21

   2021.01.27    2026.01.27    0.75    USD 450,000        570,285  

FY-21

   2021.04.27    2026.04.27    1.25    USD 500,000        633,650  

FY-21

   2021.08.09    2026.08.09    1.25    USD 300,000        380,190  

FY-21

   2021.09.24    2026.09.24    1.13    USD 300,000        380,190  

FY-22

   2022.04.21    2027.04.21    3.63    USD 300,000        380,190  

FY-22

   2022.05.06    2025.05.06    3.60    USD 500,000        633,650  

FY-22

   2022.06.14    2025.06.14~2027.06.14    3.63~4.00    USD 800,000        1,013,840  

FY-22

   2022.06.28    2025.06.28    4.13    USD 300,000        380,190  

FY-22

   2022.07.27    2027.07.27    4.25    USD 700,000        887,110  

FY-22

   2022.10.06    2026.04.06~2028.04.06    5.38~5.50    USD 800,000        1,013,840  

FY-22

   2022.10.06~2022.11.01    2032.10.06    5.16    HKD 2,350,000        381,992  
              

 

 

 
     14,871,549  

Less: Discount on foreign debt securities

 

     (124,865

Add: Premium on foreign debt securities

 

     663  

Less: Current portion of foreign debt securities

 

     (1,803,776

Add: Current portion of discount on foreign debt securities

 

     1,902  
              

 

 

 
   12,945,473  
              

 

 

 

 

(7)

Changes in borrowings and debt securities for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Beginning balance

   120,605,365        80,529,513  

Cash flow

     5,230,068        8,658,515  

Effect of exchange rate fluctuations

     506,782        238,856  

Others

     (21,308      1,716  
  

 

 

    

 

 

 

Ending balance

   126,320,907        89,428,600  
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

24.

Lease

 

1)

Group as a lessee

 

(1)

Finance lease contracts

The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized 42,955 million and 55,821 million respectively, as expense for the three-month periods ended March 31, 2023 and 2022. The Group also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e., approximately less than 5 million), and recognized 604 million and 504 million respectively, as expense for the three-month periods ended March 31, 2023 and 2022. The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

 

(2)

Right-of-use assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Acquisition
cost
     Accumulated
depreciation
     Book
value
 

Land

   892,131        (239,933      652,198  

Buildings

     139,004        (63,254      75,750  

Structures

     30,886        (7,389      23,497  

Machinery

     1,737        (925      812  

Ships

     4,151,460        (1,650,922      2,500,538  

Vehicles

     33,978        (19,527      14,451  

Others (*)

     756,251        (424,096      332,155  
  

 

 

    

 

 

    

 

 

 
   6,005,447        (2,406,046      3,599,401  
  

 

 

    

 

 

    

 

 

 

 

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

 

In millions of won    December 31, 2022  
     Acquisition
cost
     Accumulated
depreciation
     Book
value
 

Land

   886,076        (224,277      661,799  

Buildings

     135,290        (60,434      74,856  

Structures

     30,879        (6,914      23,965  

Machinery

     1,737        (902      835  

Ships

     4,151,460        (1,554,597      2,596,863  

Vehicles

     35,712        (20,996      14,716  

Others (*)

     751,570        (413,479      338,091  
  

 

 

    

 

 

    

 

 

 
   5,992,724        (2,281,599      3,711,125  
  

 

 

    

 

 

    

 

 

 

 

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

24.

Lease, Continued

 

(3)

Changes in right-of-use assets for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Increase      Depreciation      Decrease      Others      Ending
balance
 

Land

   661,799        724        (14,883      —          4,558        652,198  

Buildings

     74,856        8,993        (8,232      (93      226        75,750  

Structures

     23,965        15        (473      —          (10      23,497  

Machinery

     835        —          (23      —          —          812  

Ships

     2,596,863        —          (96,325      —          —          2,500,538  

Vehicles

     14,716        2,326        (2,110      (883      402        14,451  

Others

     338,091        7,378        (12,432      (166      (716      332,155  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   3,711,125        19,436        (134,478      (1,142      4,460        3,599,401  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Beginning
balance
     Increase      Depreciation     Decrease     Others     Ending
balance
 

Land

   652,795        63,654        (41,260     —         (13,390     661,799  

Buildings

     62,884        42,399        (30,243     (1,042     858       74,856  

Structures

     21,148        4,256        (1,758     —         319       23,965  

Machinery

     565        429        (159     —         —         835  

Ships

     3,029,219        —          (393,677     —         (38,679     2,596,863  

Vehicles

     13,618        13,475        (8,673     (962     (2,742     14,716  

Others

     279,168        72,803        (33,298     (834     20,252       338,091  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   4,059,397        197,016        (509,068     (2,838     (33,382     3,711,125  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

24.

Lease, Continued

 

(4)

Lease liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Less than 1 year

   695,490        639,756  

1 ~ 5 years

     1,983,896        2,047,584  

More than 5 years

     1,894,177        1,925,012  
  

 

 

    

 

 

 
     4,573,563        4,612,352  

Less: Discount

     (467,431      (449,209
  

 

 

    

 

 

 

Present value of lease payment

   4,106,132        4,163,143  
  

 

 

    

 

 

 

 

(5)

The details of the liquidity classification of lease liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Current lease liabilities

   669,148        614,037  

Non-current lease liabilities

     3,436,984        3,549,106  
  

 

 

    

 

 

 
   4,106,132        4,163,143  
  

 

 

    

 

 

 

 

(6)

Changes in lease liabilities for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Increase      Decrease     Interest
expenses
     Others (*)      Ending
balance
 

Lease liabilities

   4,163,143        20,232        (184,297     20,648        86,406        4,106,132  

 

(*)

Including translation effect of foreign currency lease liabilities and others.

 

In millions of won    December 31, 2022  
     Beginning
balance
     Increase      Decrease     Interest
expenses
     Others (*)      Ending
balance
 

Lease liabilities

   4,410,503        109,019        (654,236     91,590        206,267        4,163,143  

 

(*)

Including translation effect of foreign currency lease liabilities and others.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

24.

Lease, Continued

 

(7)

Details of expense relating to lease contracts as lessee for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Depreciation of right-of-use assets

   134,478        135,043  

Interest expenses of lease liabilities

     20,648        22,364  

Leases expenses for short-term leases

     42,955        55,821  

Leases expenses for leases of low-value assets

     604        504  

Variable lease payments

     2,389        40,342  
  

 

 

    

 

 

 
   201,074        254,074  
  

 

 

    

 

 

 

 

(8)

The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value asset, amounts to 230,245 million and 277,640 million, for the three-month periods ended March 31, 2023 and 2022, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

24.

Lease, Continued

 

2)

Group as a lessor

 

(1)

Finance lease contracts

The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25-year lease term, and an 89.1MW level Fujeij wind power plant over a 20-year lease term. In addition, the Group provides 27 energy storage system installation projects and 133 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Group entered into a PPA with the Comision Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

 

(2)

Profit and loss related to finance lease for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Finance income on the net investment in the lease

   28,979        29,604  

 

(3)

Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Less than 1 year

   187,871        181,930  

1 ~ 2 years

     175,670        169,693  

2 ~ 3 years

     171,812        166,787  

3 ~ 4 years

     172,388        166,196  

4 ~ 5 years

     169,756        166,965  

More than 5 years

     1,529,371        1,527,093  
  

 

 

    

 

 

 
     2,406,868        2,378,664  

Less: Unearned finance income

     (1,143,694      (1,139,274
  

 

 

    

 

 

 

Net investment in the lease (*)

   1,263,174        1,239,390  
  

 

 

    

 

 

 

 

(*)

Including the present value of unguaranteed residual value amounting to 24,110 million and 22,910 million, as of March 31, 2023 and December 31, 2022, respectively.

The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 0.00% up to 17.13% per year as of March 31, 2023. (prior year : 0.00%~17.08%)

 

(4)

Changes in the allowance for doubtful accounts of finance lease receivables for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   4,505        768  

Bad debt expense

     —          3,737  

Reversal of allowance of doubtful accounts

     (56      —    
  

 

 

    

 

 

 

Ending balance

   4,449        4,505  
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

25.

Employment Benefits

 

(1)

Employment benefit obligations as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Net defined benefit asset

   130,546        198,626  

Net defined benefit obligations

     1,016,218        825,927  

Other long-term employee benefit obligations

     2,754        2,794  

 

(2)

Principal assumptions used for actuarial valuation as of March 31, 2023 and December 31, 2022 are as follows:

 

     March 31, 2023   December 31, 2022

Discount rate

   4.50%~4.78%   5.16%~5.19%

Future salary and benefit levels

   4.56%   4.55%

Weighted average duration

   9.09 years   8.84 years

 

(3)

Details of expense relating to defined benefit plans for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Current service cost

   90,266        120,585  

Interest cost

     45,816        27,449  

Expected return on plan assets

     (38,784      (17,664
  

 

 

    

 

 

 
   97,298        130,370  
  

 

 

    

 

 

 

Expenses described above are recognized in those items below in the consolidated financial statements.

 

In millions of won    March 31, 2023      March 31, 2022  

Cost of sales

   68,686        97,368  

Selling and administrative expenses

     18,333        19,516  

Others (Construction-in-progress and others)

     10,279        13,486  
  

 

 

    

 

 

 
   97,298        130,370  
  

 

 

    

 

 

 

In addition, for the three-month periods ended March 31, 2023 and 2022, employee benefit obligations expenses of 24,417 million and 27,528 million, respectively, are recognized as cost of sales, and 3,438 million and 7,565 million, respectively, are recognized as selling and administrative expenses, and 4,695 million and 3,739 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

25.

Employment Benefits, Continued

 

(4)

Details of defined benefit obligations as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Present value of defined benefit obligation from funded plans

   4,023,955        3,776,715  

Fair value of plan assets

     (3,138,283      (3,149,414
  

 

 

    

 

 

 

Net liabilities incurred from defined benefit plans

   885,672        627,301  
  

 

 

    

 

 

 

 

(5)

Changes in the present value of defined benefit obligations for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   3,776,715        4,564,417  

Current service cost

     90,266        496,722  

Interest cost

     45,816        116,256  

Remeasurement component

     266,335        (1,012,727

Past service cost

     —          125  

Actual payments

     (155,249      (388,105

Others

     72        27  
  

 

 

    

 

 

 

Ending balance

   4,023,955        3,776,715  
  

 

 

    

 

 

 

 

(6)

Changes in the fair value of plan assets for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   3,149,414        2,909,547  

Expected return

     38,784        73,484  

Remeasurement component

     3,019        (11,609

Contributions by the employers

     532        347,778  

Actual payments

     (53,466      (169,786
  

 

 

    

 

 

 

Ending balance

   3,138,283        3,149,414  
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

25.

Employment Benefits, Continued

 

(7)

Details of the fair value of plan assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Equity instruments

   9,153        171,301  

Debt instruments

     605,181        854,640  

Bank deposits

     509,540        590,103  

Others (*)

     2,014,409        1,533,370  
  

 

 

    

 

 

 
   3,138,283        3,149,414  
  

 

 

    

 

 

 

 

(*)

‘Others’ consist of various financial assets managed by external asset management companies.

For the three-month period ended March 31, 2023 and for the year ended December 31, 2022, actual returns on plan assets amounted to 41,803 million and 61,875 million, respectively.

 

(8)

Remeasurement component recognized in other comprehensive income (loss) for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Actuarial gain from changes in financial assumptions

   173,738        (967,366

Experience adjustments, etc.

     92,597        (45,361

Expected loss (return)

     (3,019      11,609  
  

 

 

    

 

 

 
   263,316        (1,001,118
  

 

 

    

 

 

 

Remeasurement component recognized as other comprehensive income or loss is included in retained earnings.

In addition, gain on accumulated remeasurement component amounting to 115,540 million and gain on accumulated remeasurement component amounting to 614,805 million have been recognized as other comprehensive income or loss for the three-month period ended March 31, 2023 and for the year ended December 31, 2022, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

26.

Provisions

 

(1)

Provisions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
   Current      Non-current      Current      Non-current  

Employment benefits

           

Provisions for employment benefits

   1,129,059        —          1,045,058        —    

Litigation

           

Litigation provisions

     26,833        162,677        26,974        154,205  

Decommissioning cost

           

Nuclear plants

     —          23,162,063        —          23,035,427  

Spent fuel

     468,660        956,980        415,890        1,011,028  

Radioactive waste

     91,146        1,875,347        94,158        1,895,849  

PCBs

     —          84,804        —          88,359  

Other recovery provisions

     —          32,794        —          32,770  

Others

           

Power plant regional support program

     185,734        —          144,504        —    

Transmission regional support program (*)

     210,503        —          239,235        —    

Provisions for financial guarantee

     24,381        41,303        22,895        44,345  

Provisions for RPS

     119,607        —          24,339        —    

Provisions for greenhouse gas emissions obligations

     324,926        —          298,876        —    

Others

     135,443        86,290        115,122        102,659  
  

 

 

    

 

 

    

 

 

    

 

 

 
   2,716,292        26,402,258        2,427,051        26,364,642  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

As of March 31, 2023 and December 31, 2022, the Group recognizes 29,228 and 38,970 million, respectively, as a third-party reimbursement asset in relation to provisions for support program for region around transmission facility.

 

(2)

Changes in provisions for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Increase in
provision
     Payment     Reversal     Others     Ending
balance
 

Employment benefits

              

Provisions for employment benefits

   1,045,058        303,622        (219,608     (13     —         1,129,059  

Litigation

              

Litigation provisions

     181,179        20,309        (1,256     (10,722     —         189,510  

Decommissioning cost

              

Nuclear plants

     23,035,427        138,686        (12,037     —         (13     23,162,063  

Spent fuel

     1,426,918        100,887        (102,165     —         —         1,425,640  

Radioactive waste

     1,990,007        21,739        (45,253     —         —         1,966,493  

PCBs

     88,359        425        (3,980     —         —         84,804  

Other recovery provisions

     32,770        239        (479     —         264       32,794  

Others

              

Power plant regional support program

     144,504        51,814        (10,584     —         —         185,734  

Transmission regional support program

     239,235        436        (29,168     —         —         210,503  

Provisions for financial guarantee

     67,240        2,730        (4,282     (4     —         65,684  

Provisions for RPS

     24,339        184,491        (89,223     —         —         119,607  

Provisions for greenhouse gas emissions obligations

     298,876        70,131        —         (44,081     —         324,926  

Others

     217,781        5,410        (1,638     —         180       221,733  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
    28,791,693        900,919        (519,673     (54,820     431       29,118,550  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

26.

Provisions, Continued

 

(2)

Changes in provisions for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows, continued:

 

In millions of won    December 31, 2022  
     Beginning
balance
     Increase in
provision
     Payment     Reversal     Others     Ending
balance
 

Employment benefits

              

Provisions for employment benefits

   1,048,939        997,281        (1,001,283     —         121       1,045,058  

Litigation

              

Litigation provisions

     114,718        112,797        (39,633     (6,360     (343     181,179  

Decommissioning cost

              

Nuclear plants

     19,461,461        3,630,830        (56,813     —         (51     23,035,427  

Spent fuel

     1,350,662        493,943        (417,687     —         —         1,426,918  

Radioactive waste

     1,832,535        221,629        (64,157     —         —         1,990,007  

PCBs

     103,665        1,949        (17,156     (99     —         88,359  

Other recovery provisions

     30,231        2,093        (165     (751     1,362       32,770  

Others

              

Power plant regional support program

     146,588        52,470        (54,554     —         —         144,504  

Transmission regional support program

     250,288        176,424        (187,477     —         —         239,235  

Provisions for financial guarantee

     80,841        4,738        (17,789     —         (550     67,240  

Provisions for RPS

     —          587,586        (556,993     (6,254     —         24,339  

Provisions for greenhouse gas emissions obligations

     655,544        387,299        (590,172     (33,596     (120,199     298,876  

Others

     271,828        4,447        (39,566     (19,853     925       217,781  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
    25,347,300        6,673,486        (3,043,445     (66,913     (118,735     28,791,693  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

27.

Government Grants

 

(1)

Government grants as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Land

   (27,404      (27,405

Buildings

     (49,169      (50,437

Structures

     (162,949      (165,608

Machinery

     (122,940      (127,126

Vehicles

     (2,074      (2,045

Equipment

     (6,159      (6,608

Tools

     (89      (99

Construction-in-progress

     (144,864      (135,926

Investment properties

     (26      (21

Software

     (174      (174

Development expenditures

     (3,137      (3,477

Intangible assets under development

     (2,191      (2,108

Other intangible assets

     (66      (67
  

 

 

    

 

 

 
   (521,242      (521,101
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

27.

Government Grants, Continued

 

(2)

Changes in government grants for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Receipt      Acquisition      Offset the
items of
depreciation
expense and
others
     Disposal      Others      Ending
balance
 

Cash

   —          (9,540      —          —          —          9,540        —    

Land

     (27,405      —          —          —          1        —          (27,404

Buildings

     (50,437      —          —          1,264        —          4        (49,169

Structures

     (165,608      —          —          2,400        312        (53      (162,949

Machinery

     (127,126      —          —          4,238        49        (101      (122,940

Vehicles

     (2,045      —          —          208        —          (237      (2,074

Equipment

     (6,608      —          —          449        —          —          (6,159

Tools

     (99      —          —          10        —          —          (89

Construction-in-progress

     (135,926      —          285        —          —          (9,223      (144,864

Investment properties

     (21      —          —          —          —          (5      (26

Software

     (174      —          —          22        —          (22      (174

Development expenditures

     (3,477      —          —          340        —          —          (3,137

Intangible assets under development

     (2,108      —          —          —          —          (83      (2,191

Other intangible assets

     (67      —          —          1        —          —          (66
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   (521,101      (9,540      285        8,932        362        (180      (521,242
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  
     Beginning
balance
    Receipt     Acquisition      Offset the
items of
depreciation
expense and
others
     Disposal      Others     Ending
balance
 

Cash

   —         (50,755     —          —          —          50,755       —    

Land

     (23,474     —         —          —          1        (3,932     (27,405

Buildings

     (52,122     —         —          5,360        —          (3,675     (50,437

Structures

     (172,021     —         —          9,568        1,250        (4,405     (165,608

Machinery

     (140,082     —         —          17,283        405        (4,732     (127,126

Vehicles

     (1,675     —         —          663        —          (1,033     (2,045

Equipment

     (149     —         —          494        —          (6,953     (6,608

Tools

     (64     —         —          32        —          (67     (99

Construction-in-progress

     (111,822     —         23,155        —          17        (47,276     (135,926

Investment properties

     (30     —         —          1        —          8       (21

Software

     (91     —         —          60        —          (143     (174

Development expenditures

     (3,820     —         —          1,466        —          (1,123     (3,477

Intangible assets under development

     (7,326     —         —          —          —          5,218       (2,108

Other intangible assets

     (71     —         —          4        —          —         (67
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   (512,747     (50,755     23,155        34,931        1,673        (17,358     (521,101
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

28.

Deferred Revenue

 

Deferred revenue for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows which are included in current and non-current non-financial liabilities in the consolidated statements of financial position:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   10,974,845        10,356,555  

Increase

     242,106        1,330,129  

Recognized as revenue

     (181,835      (711,839
  

 

 

    

 

 

 

Ending balance

   11,035,116        10,974,845  
  

 

 

    

 

 

 

 

29.

Non-financial Liabilities

Non-financial liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Current      Non-current      Current      Non-current  

Advance received

   4,885,873        281,773        4,544,206        284,618  

Unearned revenue

     50,428        7,165        86,584        7,200  

Deferred revenue

     706,069        10,329,047        702,430        10,272,415  

Withholdings

     457,957        2,427        207,217        2,408  

Others

     1,574,006        95,903        1,433,940        96,020  
  

 

 

    

 

 

    

 

 

    

 

 

 
   7,674,333        10,716,315        6,974,377        10,662,661  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

30.

Contributed Capital

 

(1)

Details of share capital as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won except share information  
     March 31, 2023  
     Shares
authorized
     Shares issued      Par value
per share
(in won)
     Owned by
government (*)
     Owned by
others
     Total  

Common shares

     1,200,000,000        641,964,077      5,000        1,640,385        1,569,435        3,209,820  

 

(*)

Korea Development Bank’s interest of 1,056,176 million is included.

 

In millions of won except share information  
     December 31, 2022  
     Shares
authorized
     Shares issued      Par value
per share
(in won)
     Owned by
government (*)
     Owned by
others
     Total  

Common shares

     1,200,000,000        641,964,077      5,000        1,640,385        1,569,435        3,209,820  

 

(*)

Korea Development Bank’s interest of 1,056,176 million is included.

 

(2)

Details in number of floating capital stock for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

Number of shares    March 31, 2023      December 31, 2022  

Beginning balance

     641,964,077        641,964,077  
  

 

 

    

 

 

 

Ending balance

     641,964,077        641,964,077  
  

 

 

    

 

 

 

 

(3)

Details of share premium as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Share premium

   843,758        843,758  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

31.

Retained Earnings and Dividends Paid

 

(1)

Details of retained earnings as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Legal reserve (*)

   1,604,910        1,604,910  

Voluntary reserves

     2,812,313        27,782,969  

Retained earnings (Undisposed deficit) before appropriations

     11,914,132        (7,956,579
  

 

 

    

 

 

 

Retained earnings

   16,331,355        21,431,300  
  

 

 

    

 

 

 

 

(*)

The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders.

 

(2)

Details of voluntary reserves as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Reserve for investment on social overhead capital

   2,272,313        5,277,449  

Reserve for research and human development (*)

     330,000        330,000  

Reserve for business expansion

     —          21,965,520  

Reserve for equalizing dividends

     210,000        210,000  
  

 

 

    

 

 

 
   2,812,313        27,782,969  
  

 

 

    

 

 

 

 

(*)

The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea.

 

(3)

Changes in retained earnings for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   21,431,300        45,258,244  

Loss for the year attributed to owners of the controlling company

     (4,946,503      (24,466,853

Changes in equity method retained earnings

     4,024        12,305  

Remeasurements of defined benefit liability, net of tax

     (157,466      626,769  

Additional paid-in capital and others

     —          835  
  

 

 

    

 

 

 

Ending balance

   16,331,355        21,431,300  
  

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

31.

Retained Earnings and Dividends Paid, Continued

 

(4)

Dividends paid for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Number of
shares issued
     Number of
treasury
stocks
     Number of
shares eligible for
dividends
     Dividends paid
per share
(In won)
     Dividends
paid
 

Common shares

     641,964,077        —          641,964,077      —          —    

 

In millions of won    December 31, 2022  
     Number of
shares issued
     Number of
treasury
stocks
     Number of
shares eligible for
dividends
     Dividends paid
per share
(In won)
     Dividends
paid
 

Common shares

     641,964,077        —          641,964,077      —          —    

 

(5)

Changes in retained earnings of investments in associates and joint ventures for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   16,275        3,970  

Changes

     4,024        12,305  
  

 

 

    

 

 

 

Ending balance

   20,299        16,275  
  

 

 

    

 

 

 

 

(6)

Changes in remeasurement components related to defined benefit liability for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Beginning balance

   614,805        98,844  

Changes

     (250,134      964,791  

Income tax effect

     92,668        (338,022

Transfer to reserve for business expansion

     (341,799      (110,808
  

 

 

    

 

 

 

Ending balance

   115,540        614,805  
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

32.

Hybrid Bonds

 

Hybrid bonds classified as equity (non-controlling interests) as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won                                         

Issuer

   Hybrid bond      Issued date      Maturity      Yield (%)      March 31, 2023     December 31, 2022  

Korea South-East Power Co., Ltd. (*)

     2nd hybrid bond        2012.12.07        2042.12.06        4.44      230,000       230,000  

Expense of issuance

                 (627     (627
              

 

 

   

 

 

 
               229,373       229,373  

 

(*)

Bondholders may not require prepayment in any case, and the Group has a call option to repay all of these bonds on or after 12 years from the date of issuance of the bonds, or on each interest payment date henceforth. In addition, there is a step-up clause from the date of the initial call option exercise. Although these instruments have contractual maturity dates, the contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Group decides not to pay dividends on common shares, they are not required to pay interest on the hybrid bonds.

 

33.

Other Components of Equity

 

(1)

Other components of equity as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Other capital surplus

   1,268,556        1,268,569  

Accumulated other comprehensive income

     570,890        496,976  

Other equity

     13,294,972        13,294,973  
  

 

 

    

 

 

 
   15,134,418        15,060,518  
  

 

 

    

 

 

 

 

(2)

Changes in other capital surplus for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023     December 31, 2022  
   Gains on
disposal of
treasury
stocks
     Others     Subtotal     Gains on
disposal of
treasury
stocks
     Others     Subtotal  

Beginning balance

   387,524        881,045       1,268,569       387,524        843,585       1,231,109  

Changes in consolidation scope

     —          (47     (47     —          (597     (597

Additional paid-in capital and others

     —          —         —         —          39,641       39,641  

Transactions between consolidated entities

     —          34       34       —          (1,584     (1,584
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Ending balance

   387,524        881,032       1,268,556       387,524        881,045       1,268,569  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

33.

Other Components of Equity, Continued

 

(3)

Changes in accumulated other comprehensive income (loss) for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Financial assets at
fair value through
other
comprehensive
income
valuation reserve
    Shares of other
comprehensive
income of
investments in
associates and joint
ventures
     Reserve
for overseas
operations
translation
credit
    Reserve for
gain (loss) on
valuation of
derivatives
    Total  

Beginning balance

   11,510       820,739        (305,620     (29,653     496,976  

Changes in the unrealized fair value of financial assets at FVOCI, net of tax

     (56,872     —          —         —         (56,872

Shares of other comprehensive income of associates and joint ventures, net of tax

     —         110,590        —         —         110,590  

Foreign currency translation of foreign operations, net of tax

     —         —          16,581       —         16,581  

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

     —         —          —         3,615       3,615  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Ending balance

   (45,362     931,329        (289,039     (26,038     570,890  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

In millions of won    December 31, 2022  
     Financial assets at
fair value through
other
comprehensive
income
valuation reserve
    Shares of other
comprehensive
income of
investments in
associates and joint
ventures
     Reserve
for overseas
operations
translation
credit
    Reserve for
gain (loss) on
valuation of
derivatives
    Total  

Beginning balance

   (46,498     311,252        (325,170     2,784       (57,632

Changes in the unrealized fair value of financial assets at FVOCI, net of tax

     58,008       —          —         —         58,008  

Shares of other comprehensive income of associates and joint ventures, net of tax

     —         509,487        —         —         509,487  

Foreign currency translation of foreign operations, net of tax

     —         —          19,550       —         19,550  

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

     —         —          —         (32,437     (32,437
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Ending balance

   11,510       820,739        (305,620     (29,653     496,976  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(4)

Other equity as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Statutory revaluation reserve

   13,295,098        13,295,098  

Changes in other equity

     (126      (125
  

 

 

    

 

 

 
   13,294,972        13,294,973  
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

34.

Sales

 

Details of sales for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  
     Domestic      Overseas      Total      Domestic      Overseas      Total  

[Type of goods and services]

 

           

Sales of goods

   21,064,184        79,321        21,143,505        15,913,850        123,946        16,037,796  

Electricity

     20,259,063        —          20,259,063        15,378,358        —          15,378,358  

Heat supply

     269,503        —          269,503        232,648        —          232,648  

Others

     535,618        79,321        614,939        302,844        123,946        426,790  

Sales related to rendering of services

     94,003        55,159        149,162        63,792        47,282        111,074  

Sales related to construction services

     36,900        82,620        119,520        31,947        108,847        140,794  

Revenue related to transfer of assets from customers

     181,835        —          181,835        174,406        —          174,406  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   21,376,922        217,100        21,594,022        16,183,995        280,075        16,464,070  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

[Timing of revenue recognition]

                 

Performance obligations satisfied at a point in time

   21,064,184        79,321        21,143,505        15,913,850        123,946        16,037,796  

Performance obligations satisfied over time

     312,738        137,779        450,517        270,145        156,129        426,274  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   21,376,922        217,100        21,594,022        16,183,995        280,075        16,464,070  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

35.

Selling and Administrative Expenses

 

Selling and administrative expenses for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Salaries

   278,274        270,859  

Retirement benefit expense

     21,771        27,081  

Welfare and benefit expense

     35,132        34,176  

Insurance expense

     8,060        7,252  

Depreciation

     63,276        53,092  

Amortization of intangible assets

     21,010        19,026  

Bad debt expense (reversal of bad debt expense)

     (821      8,416  

Commission

     102,351        82,757  

Advertising expense

     15,301        13,653  

Training expense

     1,823        1,034  

Vehicle maintenance expense

     2,244        2,130  

Publishing expense

     857        880  

Business promotion expense

     786        772  

Rent expense

     10,682        9,155  

Telecommunication expense

     2,188        2,166  

Transportation expense

     362        241  

Taxes and dues

     17,285        10,102  

Expendable supplies expense

     2,060        2,532  

Water, light and heating expense

     5,573        5,146  

Repairs and maintenance expense

     26,523        21,612  

Ordinary development expense

     40,995        42,320  

Travel expense

     4,256        3,707  

Clothing expense

     220        146  

Survey and analysis expense

     252        214  

Membership fee

     547        600  

Others

     30,580        29,085  
  

 

 

    

 

 

 
   691,587        648,154  
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

36.

Other Income and Expenses

 

(1)

Other income for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Reversal of other provisions

   10,586        2,356  

Gains on government grants

     60        75  

Gains on assets contributed

     2,022        151  

Gains on liabilities exempted

     102        158  

Compensation and reparations revenue

     18,947        15,675  

Revenue from foundation fund

     1        —    

Revenue from research contracts

     716        1,826  

Rental income

     51,835        50,822  

Others

     5,467        4,225  
  

 

 

    

 

 

 
   89,736        75,288  
  

 

 

    

 

 

 

 

(2)

Other expenses for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Accretion expenses of other provisions

   345        523  

Depreciation expenses on investment properties

     123        101  

Depreciation expenses on idle assets

     914        890  

Other bad debt expense

     2,618        2,407  

Donations

     10,129        9,513  

Others

     6,941        35,810  
  

 

 

    

 

 

 
   21,070        49,244  
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

37.

Other Gains (Losses)

 

Composition of other gains (losses) for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Other gains

     

Gains on disposal of property, plant and equipment

   6,567        7,040  

Gains on foreign currency translation

     17,039        11,485  

Gains on foreign currency transaction

     47,934        12,098  

Others

     101,769        56,296  

Other losses

     

Losses on disposal of property, plant and equipment

     (11,304      (29,976

Losses on disposal of intangible assets

     (57      (19

Impairment loss on property, plant and equipment

     (2,021      —    

Impairment loss on intangible assets

     (283      —    

Losses on foreign currency translation

     (9,740      (2,847

Losses on foreign currency transaction

     (74,404      (25,962

Others

     (62,236      (37,962
  

 

 

    

 

 

 
   13,264        (9,847
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

38.

Finance Income

 

Finance income for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Interest income

   102,946        61,269  

Dividends income

     189        8,455  

Gains on disposal of financial assets

     2,493        940  

Gains on valuation of financial assets at fair value through profit or loss

     17,695        1,612  

Gains on valuation of derivatives

     437,863        144,153  

Gains on transaction of derivatives

     76,396        36,362  

Gains on foreign currency translation

     53,459        29,653  

Gains on foreign currency transaction

     5,491        3,590  

Other finance income

     683        201  
  

 

 

    

 

 

 
   697,215        286,235  
  

 

 

    

 

 

 

 

39.

Finance Expenses

Finance expenses for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Interest expense

   1,048,078        563,911  

Losses on sale of financial assets

     217        234  

Losses on valuation of financial assets at fair value through profit or loss

     974        11,138  

Losses on valuation of derivatives

     70,011        24,576  

Losses on transaction of derivatives

     48,608        11,547  

Losses on foreign currency translation

     521,835        305,863  

Losses on foreign currency transaction

     7,591        10,064  

Losses on repayment of financial liabilities

     —          15  

Others

     503        816  
  

 

 

    

 

 

 
   1,697,817        928,164  
  

 

 

    

 

 

 

Capitalization rates for the three-month periods ended March 31, 2023 and 2022 are 2.16%~5.17% and 2.10%~2.88%, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

40.

Income Taxes

Income tax expense is calculated by adjusting adjustments recognized in the current period, changes in deferred tax assets and liabilities resulting from temporary differences, and income tax expense related to items recognized as other than profit or loss. The Group did not calculate the average effective tax rate for the current period because income tax benefit occurred for the three-month periods ended March 31, 2023 and 2022.

 

41.

Assets Held-for-Sale

Assets held-for-sale as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Land (*1,2)

   31,766        31,766  

Buildings (*1,2)

     12,981        12,981  

Structures (*1)

     1        1  
  

 

 

    

 

 

 
   44,748        44,748  
  

 

 

    

 

 

 

 

(*1)

The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Group, made a resolution to sell its old office building in Yongin-si, Gyeonggi-do, and reclassified the buildings, structures, and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

(*2)

The board of directors of Korea Electric Power Corporation, the controlling company, made a resolution to sell the Uijeongbu substation, and reclassified the buildings and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

42.

Expenses Classified by Nature

Expenses classified by nature for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023  
     Selling and
administrative expenses
     Cost of sales        Total  

Raw materials used

   —          9,096,273        9,096,273  

Power purchase

     —          12,170,905        12,170,905  

Salaries

     278,274        1,091,604        1,369,878  

Retirement benefit expense

     21,771        93,103        114,874  

Welfare and benefit expense

     35,132        131,025        166,157  

Insurance expense

     8,060        33,579        41,639  

Depreciation

     63,276        3,143,661        3,206,937  

Amortization of intangible assets

     21,010        20,400        41,410  

Bad debt expense (reversal of bad debt expense)

     (821      —          (821

Commission

     102,351        84,642        186,993  

Advertising expense

     15,301        1,463        16,764  

Training expense

     1,823        2,579        4,402  

Vehicle maintenance expense

     2,244        2,204        4,448  

Publishing expense

     857        694        1,551  

Business promotion expense

     786        776        1,562  

Rent expense

     10,682        29,586        40,268  

Telecommunication expense

     2,188        2,272        4,460  

Transportation expense

     362        26,908        27,270  

Taxes and dues

     17,285        98,724        116,009  

Expendable supplies expense

     2,060        9,808        11,868  

Water, light and heating expense

     5,573        15,461        21,034  

Repairs and maintenance expense

     26,523        567,327        593,850  

Ordinary development expense

     40,995        110,891        151,886  

Travel expense

     4,256        20,653        24,909  

Clothing expense

     220        1,597        1,817  

Survey and analysis expense

     252        1,088        1,340  

Membership fee

     547        4,459        5,006  

Others

     30,580        318,312        348,892  
  

 

 

    

 

 

    

 

 

 
   691,587        27,079,994        27,771,581  
  

 

 

    

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

42.

Expenses Classified by Nature, Continued

 

Expenses classified by nature for the three-month periods ended March 31, 2023 and 2022 are as follows, continued:

 

 

In millions of won    March 31, 2022  
     Selling and
administrative expenses
     Cost of sales      Total  

Raw materials used

   —          7,538,684        7,538,684  

Power purchase

     —          10,582,680        10,582,680  

Salaries

     270,859        1,050,239        1,321,098  

Retirement benefit expense

     27,081        124,896        151,977  

Welfare and benefit expense

     34,176        126,283        160,459  

Insurance expense

     7,252        26,967        34,219  

Depreciation

     53,092        3,033,658        3,086,750  

Amortization of intangible assets

     19,026        16,248        35,274  

Bad debt expense

     8,416        —          8,416  

Commission

     82,757        77,726        160,483  

Advertising expense

     13,653        1,560        15,213  

Training expense

     1,034        1,740        2,774  

Vehicle maintenance expense

     2,130        2,217        4,347  

Publishing expense

     880        694        1,574  

Business promotion expense

     772        833        1,605  

Rent expense

     9,155        19,967        29,122  

Telecommunication expense

     2,166        2,385        4,551  

Transportation expense

     241        15,780        16,021  

Taxes and dues

     10,102        94,653        104,755  

Expendable supplies expense

     2,532        10,505        13,037  

Water, light and heating expense

     5,146        17,507        22,653  

Repairs and maintenance expense

     21,612        503,380        524,992  

Ordinary development expense

     42,320        104,406        146,726  

Travel expense

     3,707        17,770        21,477  

Clothing expense

     146        501        647  

Survey and analysis expense

     214        876        1,090  

Membership fee

     600        6,319        6,919  

Others

     29,085        224,364        253,449  
  

 

 

    

 

 

    

 

 

 
   648,154        23,602,838        24,250,992  
  

 

 

    

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

43.

Loss Per Share

 

(1)

Basic loss per share for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In won              

Type

   March 31, 2023      March 31, 2022  

Basic loss per share

   (7,705)        (9,273

 

(2)

Loss for the periods and weighted average number of common shares used in the calculation of basic loss per share for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won except number of shares              

Type

   March 31, 2023      March 31, 2022  

Loss attributable to owners of the controlling company

   (4,946,503      (5,952,856

Loss used in the calculation of total basic loss per share

     (4,946,503      (5,952,856

Weighted average number of common shares

     641,964,077        641,964,077  

 

(3)

Weighted average number of common shares used in the calculation of basic loss per share for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In number of shares              

Type

   March 31, 2023      March 31, 2022  

The number of common shares issued at beginning of the year

     641,964,077        641,964,077  

Weighted average number of common shares

     641,964,077        641,964,077  

There are no potential dilutive instruments and diluted loss per share are same as basic loss per share for the three-month periods ended March 31, 2023 and 2022.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management

 

(1)

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023     December 31, 2022  

Total borrowings and debt securities

   126,320,907       120,605,365  

Cash and cash equivalents

     3,095,568       3,234,780  
  

 

 

   

 

 

 

Net borrowings and debt securities

     123,225,339       117,370,585  
  

 

 

   

 

 

 

Total equity

     36,967,714       42,000,256  
  

 

 

   

 

 

 

Debt to equity ratio

     333.33     279.45

 

(2)

Financial risk management

The Group is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), and credit risk. The Group monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. The Group uses derivative financial instruments to hedge certain risk exposures. The Group’s overall financial risk management strategy remains consistent with the prior year.

 

  (i)

Credit risk

Credit risk is the risk of finance loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales activities, securities and derivatives. In addition, credit risk exposure may exist within financial guarantees and unused line of credits. As these financial institutions the Group makes transactions with are reputable financial institutions, the credit risk from them is considered limited. The Group decides credit transaction limits based on evaluation of client’s credit, through information obtained from the credit bureau and disclosed financial position at committing contracts.

 

 

Credit risk management

Electricity sales, the main operations of the Group are the necessity for daily life and industrial activities of Korean nationals and have importance as one of the national key industries. The Group dominates the domestic market supplying electricity to customers. The Group is not exposed to significant credit risk as customers of the Group are diverse and are from various industries and areas. The Group uses publicly available information and its own internal data related to trade receivables, to rate its major customers and to measure the credit risk that a counter party will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.

 

 

Impairment and allowance account

In accordance with the Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Cash and cash equivalents

   3,095,568        3,234,780  

Financial assets at fair value through profit or loss (*1)

     1,613,346        3,610,408  

Derivative assets (trading)

     827,432        693,072  

Financial assets at fair value through other comprehensive income (debt securities)

     529        529  

Financial assets at amortized cost

     26,850        26,998  

Loans

     1,035,254        1,013,371  

Long-term/short-term financial instruments

     1,310,758        1,353,080  

Derivative assets (applying hedge accounting)

     463,891        324,952  

Trade and other receivables

     11,631,994        12,614,902  

Financial guarantee contracts (*2)

     3,917,342        3,776,060  

 

(*1)

Equity investments held by the Group are excluded.

(*2)

Maximum exposure associated with the financial guarantee contracts is the maximum amounts of the obligation.

As of the reporting date, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.

 

  (ii)

Market risk

Market risk is the risk that the Group’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, currency risk and other price risk.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

  (iii)

Sensitivity analysis

Significant assets and liabilities with uncertainties in underlying assumptions

 

 

Defined benefit obligation

A sensitivity analysis of defined benefit obligation assuming a 1%p increase and decrease movements in the actuarial valuation assumptions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023     December 31, 2022  

Type

  

Accounts

   1%p Increase     1%p Decrease     1%p Increase     1%p Decrease  

Future salary increases

   Increase (decrease) in defined benefit obligation    361,870       (334,226     321,930       (283,658

Discount rate

   Increase (decrease) in defined benefit obligation      (333,775     370,928       (289,229     337,033  

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the three-month periods ended March 31, 2023 and 2022 are 7,475 million and 6,971 million, respectively.

 

 

Provisions

Changes in provisions due to movements in underlying assumptions as of March 31, 2023 and December 31, 2022 are as follows:

 

Type

  

Accounts

   March 31, 2023     December 31, 2022  

PCBs

   Inflation rate      1.98     1.98
   Discount rate      1.92     1.92

Nuclear plants

   Inflation rate      2.25     2.25
   Discount rate      2.48     2.48

Spent fuel

   Inflation rate      2.93     2.93
   Discount rate      4.49     4.49

Radioactive waste

   Inflation rate      3.06     3.06
   Discount rate      2.62     2.62

A sensitivity analysis of provisions assuming a 0.1%p increase and decrease movements in the underlying assumptions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won         March 31, 2023     December 31, 2022  

Type

  

Accounts

   0.1%p Increase     0.1%p Decrease     0.1%p Increase     0.1%p Decrease  

Discount rate

   PCBs    (147     147       (169     169  
  

Nuclear plants

     (471,753     488,543       (474,432     491,360  
  

Spent fuel

     (54,282     56,402       (54,330     56,453  
  

Radioactive waste

     (14,863     15,030       (15,089     15,260  

Inflation rate

   PCBs      147       (147     169       (169
  

Nuclear plants

     518,430       (501,321     515,262       (498,258
  

Spent fuel

     57,217       (55,141     57,269       (55,191
  

Radioactive waste

     14,947       (14,805     14,190       (14,056

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

Management judgment effected by uncertainties in underlying assumptions

 

 

Foreign currency risk

The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In thousands of foreign currencies    Assets      Liabilities  

Type

   March 31, 2023      December 31, 2022      March 31, 2023      December 31, 2022  

AED

     23,926        5,610        17,261        25,597  

AUD

     4,447        4,448        810,398        299,663  

BDT

     2,565        7,514        —          —    

BWP

     816        824        —          —    

EGP

     —          —          —          1,162  

CAD

     86        89        83        595  

CHF

     —          —          500,142        500,158  

CZK

     —          —          —          153  

EUR

     381        1,976        41,684        41,073  

GBP

     16        —          —          31  

HKD

     —          —          4,044,705        4,014,446  

IDR

     29,996,217        598,697        1,972,047        1,323,840  

INR

     1,625,363        1,592,380        401,976        312,978  

JOD

     1,056        1,146        256        14  

JPY

     12,193        568,263        900,915        1,719,846  

KZT

     1,510        1,510        —          —    

MGA

     3,610,779        2,856,045        369,135        347,403  

MMK

     199,518        199,518        —          —    

MYR

     38,565        38,177        —          —    

PHP

     130,735        68,592        45,267        7,493  

PKR

     3,930,422        533,816        102,059        219,341  

RUB

     —          —          —          2,881  

SAR

     1,323        1,713        4        9,710  

SEK

     —          —          449,222        449,211  

SGD

     114        —          1,685        —    

THB

     —          —          195        389  

USD

     1,172,790        1,484,614        13,399,537        13,599,643  

UYU

     161,085        128,674        2,856        3,106  

VND

     961,314        1,184,670        —          4,495  

ZAR

     80,147        43,461        668        —    

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Type

   10% Increase      10% Decrease      10% Increase      10% Decrease  

Increase (decrease) of profit before income tax

   (1,725,513      1,725,513        (1,703,053      1,703,053  

Increase (decrease) of shareholders’ equity (*)

     (1,725,513      1,725,513        (1,703,053      1,703,053  

 

(*)

The effect on the shareholders’ equity excluding the impact of income taxes.

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of March 31, 2023 and December 31, 2022.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into currency swap agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Group enters into currency forward agreements.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of March 31, 2023, the hedging instrument (cross-currency swap) hedges the risk of the hedged item(repayment of foreign debt securities and others).

 

 

Interest rate risk

The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1%p increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The Group’s borrowings and debt securities with floating interest rates as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won       

Type

   March 31, 2023      December 31, 2022  

Short-term borrowings

   3,052,152        3,154,972  

Long-term borrowings

     6,660,227        5,388,073  

Debt securities

     273,955        269,101  
  

 

 

    

 

 

 
   9,986,334        8,812,146  
  

 

 

    

 

 

 

A sensitivity analysis on the Group’s borrowings and debt securities assuming a 1%p increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Type

   1%p Increase      1%p Decrease      1%p Increase      1%p Decrease  

Increase (decrease) of profit before income tax

   (24,966      24,966        (88,121      88,121  

Increase (decrease) of shareholder’s equity (*)

     (24,966      24,966        (88,121      88,121  

 

(*)

The effect on the shareholders’ equity excluding the impact of income taxes.

The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

 

Electricity rates risk

The Group is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

A sensitivity analysis on the Group’s income for the period assuming a 1% increase and decrease in price of electricity for the three-month periods ended March 31, 2023 and 2022 is as follows:

 

In millions of won    March 31, 2023      March 31, 2022  

Type

   1% Increase      1% Decrease      1% Increase      1% Decrease  

Increase (decrease) of profit before income tax

   202,591        (202,591      153,784        (153,784

Increase (decrease) of shareholder’s equity (*)

     202,591        (202,591      153,784        (153,784

 

(*)

The effect on the shareholders’ equity excluding the impact of income taxes.

 

  (iv)

Liquidity risk

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by continuously monitoring forecasted and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

In addition, the Group has established credit lines on its trade financing and bank overdrafts, and through payment guarantees it has received, it maintains an adequate credit (borrowing) line. In addition, the Group has the ability to utilize excess cash or long-term borrowings for major construction investments.

The expected maturities for non-derivative financial liabilities as of March 31, 2023 and December 31, 2022 in detail are as follows:

 

In millions of won    March 31, 2023  

Type

   Less than
1 year
     1~2 Years      2~5 Years      More than
5 years
     Total  

Borrowings and debt securities

   29,495,529        34,242,756        51,585,387        39,676,560        155,000,232  

Lease liabilities

     695,490        615,730        1,368,166        1,894,177        4,573,563  

Trade and other payables (*1)

     9,911,811        388,816        1,063,664        662,175        12,026,466  

Financial guarantee contracts (*2)

     108,409        14,884        3,702,493        91,556        3,917,342  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   40,211,239        35,262,186        57,719,710        42,324,468        175,517,603  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  

Type

   Less than
1 year
     1~2 Years      2~5 Years      More than
5 years
     Total  

Borrowings and debt securities

   26,157,747        27,367,577        47,361,676        37,115,832        138,002,832  

Lease liabilities

     639,756        657,210        1,390,374        1,925,012        4,612,352  

Trade and other payables (*1)

     11,369,512        347,563        1,008,133        734,112        13,459,320  

Financial guarantee contracts (*2)

     105,091        54,310        3,495,437        121,222        3,776,060  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   38,272,106        28,426,660        53,255,620        39,896,178        159,850,564  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*1)

Excludes lease liabilities

(*2)

This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of March 31, 2023 and December 31, 2022 are 65,684 million and 67,240 million, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

As the Group manages liquidity based on net assets and net liabilities, information about non-derivative financial assets should be included in the disclosure for better understanding of liquidity risk management.

The expected maturities for non-derivative financial assets as of March 31, 2023 and December 31, 2022 in detail are as follows:

 

In millions of won    March 31, 2023  

Type

   Less than
1 year
     1~5 Years      More than
5 years
     Other (*)      Total  

Cash and cash equivalents

   3,095,568        —          —          —          3,095,568  

Financial assets at fair value through other comprehensive income

     —          —          —          468,919        468,919  

Financial assets at amortized cost

     16,604        3,308        6,938        —          26,850  

Loans and receivables

     120,130        449,228        501,342        —          1,070,700  

Long-term/short-term financial instruments

     616,369        —          25        694,364        1,310,758  

Financial assets at fair value through profit or loss

     1,165,783        782        3,676        548,764        1,719,005  

Trade and other receivables

     9,394,788        1,057,803        1,196,024        —          11,648,615  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   14,409,242        1,511,121        1,708,005        1,712,047        19,340,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

In millions of won    December 31, 2022  

Type

   Less than
1 year
     1~5 Years      More than
5 years
     Other (*)      Total  

Cash and cash equivalents

   3,234,780        —          —          —          3,234,780  

Financial assets at fair value through other comprehensive income

     —          —          —          502,829        502,829  

Financial assets at amortized cost

     16,762        10,231        5        —          26,998  

Loans and receivables

     132,877        411,594        502,050        —          1,046,521  

Long-term/short-term financial instruments

     666,758        —          25        686,297        1,353,080  

Financial assets at fair value through profit or loss

     3,181,791        645        3,535        523,537        3,709,508  

Trade and other receivables

     10,464,191        1,083,593        1,080,831        —          12,628,615  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   17,697,159        1,506,063        1,586,446        1,712,663        22,502,331  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

The maturities cannot be presently determined.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  

Type

   Less than
1 year
    1~2 Years     2~5 Years     More than
5 years
    Total  

Net settlement

          

- Trading

   —         —         —         —         —    

Gross settlement

          

- Trading and others

     (12,101     (28,605     (122,338     (80,944     (243,988

- Hedging

     —         —         —         (7,721     (7,721
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   (12,101     (28,605     (122,338     (88,665     (251,709
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
In millions of won    December 31, 2022  

Type

   Less than
1 year
    1~2 Years     2~5 Years     More than
5 years
    Total  

Net settlement

          

- Trading

   —         —         —         —         —    

Gross settlement

          

- Trading and others

     (42,663     (15,225     (171,130     (84,924     (313,942

- Hedging

     —         (10,064     (5,176     (10,265     (25,505
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   (42,663     (25,289     (176,306     (95,189     (339,447
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(3)

Fair value risk

The fair value of the Group’s actively-traded financial instruments (i.e., FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Group uses that technique.

For trade receivables and payables, the Group considers the carrying value net of impairment as fair value. While for disclosure purposes, the fair value of financial liabilities is estimated by discounting a financial instruments with similar contractual cash flows based on current market interest rates applied to similar financial instruments.

 

  (i)

Fair value and book value of financial assets and liabilities as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Type

   Book value      Fair value      Book value      Fair value  

Assets recognized at fair value

           

Financial assets at fair value through other comprehensive income

   468,919        468,919        502,829        502,829  

Derivative assets (trading)

     827,432        827,432        693,072        693,072  

Derivative assets (hedge designated)

     463,891        463,891        324,952        324,952  

Financial assets at fair value through profit or loss

     1,719,005        1,719,005        3,709,508        3,709,508  
  

 

 

    

 

 

    

 

 

    

 

 

 
   3,479,247        3,479,247        5,230,361        5,230,361  
  

 

 

    

 

 

    

 

 

    

 

 

 

Assets carried at amortized cost

           

Financial assets at amortized cost

   26,850        26,850        26,998        26,998  

Loans and receivables

     1,035,254        1,035,254        1,013,371        1,013,371  

Trade and other receivables

     11,631,994        11,631,994        12,614,902        12,614,902  

Long-term financial instruments

     694,389        694,389        686,322        686,322  

Short-term financial instruments

     616,369        616,369        666,758        666,758  

Cash and cash equivalents

     3,095,568        3,095,568        3,234,780        3,234,780  
  

 

 

    

 

 

    

 

 

    

 

 

 
   17,100,424        17,100,424        18,243,131        18,243,131  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities recognized at fair value

           

Derivative liabilities (trading)

   293,071        293,071        407,246        407,246  

Derivative liabilities (hedge designated)

     7,721        7,721        25,505        25,505  
  

 

 

    

 

 

    

 

 

    

 

 

 
   300,792        300,792        432,751        432,751  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities carried at amortized cost

           

Secured borrowings

   144,413        144,413        102,368        102,368  

Unsecured bond

     112,512,815        108,543,716        105,185,189        96,846,056  

Lease liabilities

     4,106,132        4,106,132        4,163,143        4,163,143  

Unsecured borrowings

     13,663,679        13,630,663        15,282,193        15,280,693  

Trade and other payables (*)

     12,026,466        12,026,466        13,459,320        13,459,320  

Overdraft

     —          —          35,615        35,615  
  

 

 

    

 

 

    

 

 

    

 

 

 
   142,453,505        138,451,390        138,227,828        129,887,195  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(*)

Excludes lease liabilities.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(3)

Fair value risk, continued

 

  (ii)

Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount rate used for calculating fair value as of March 31, 2023 and December 31, 2022 are as follows:

 

Type

   March 31, 2023      December 31, 2022  

Derivatives

     0.93%~8.89%        0.60%~7.93%  

Borrowings and debt securities

     0.00%~8.00%        0.00%~8.00%  

Leases

     0.00%~17.13%        0.00%~17.08%  

 

  (iii)

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.

 

Level 1:    Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2:    Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3:    Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  

Type

   Level 1      Level 2      Level 3      Total  

Financial assets at fair value

           

Financial assets at fair value through other comprehensive income

   266,110        —          202,809        468,919  

Derivative assets

     —          1,291,323        —          1,291,323  

Financial assets at fair value through profit or loss

     —          1,712,967        6,038        1,719,005  
  

 

 

    

 

 

    

 

 

    

 

 

 
   266,110        3,004,290        208,847        3,479,247  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities at fair value

           

Derivative liabilities

   —          300,792        —          300,792  

 

In millions of won    December 31, 2022  

Type

   Level 1      Level 2      Level 3      Total  

Financial assets at fair value

           

Financial assets at fair value through other comprehensive income

   300,057        —          202,772        502,829  

Derivative assets

     —          1,018,024        —          1,018,024  

Financial assets at fair value through profit or loss

     —          3,703,179        6,329        3,709,508  
  

 

 

    

 

 

    

 

 

    

 

 

 
   300,057        4,721,203        209,101        5,230,361  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities at fair value

           

Derivative liabilities

   —          432,751        —          432,751  

The fair value of financial assets traded in the market (including those measured at FVTPL and FVOCI) is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unmarketable financial assets (including those measured at FVTPL and FVOCI) is calculated using the fair value measurement performed by external pricing service agents. In addition, the Group considered the major economic indicators and economic environment of the derivatives to be evaluated, and measured the fair value of the derivatives using a discounted cash flow model that reflects the Group’s credit risk.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

44.

Risk Management, Continued

 

(3)

Fair value risk, continued

 

Changes of non-derivative financial assets and liabilities which are classified as level 3 for the three-month period ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

 

In millions of won    March 31, 2023  
     Beginning
balance
     Acquisitions      Reclassified
category
    Valuation     Disposal     Foreign
currency
translation
and others
     Ending
balance
 

Financial assets at fair value

                 

Financial assets at fair value through profit or loss Cooperative

   6,329        —          (400     109       —         —          6,038  

Financial assets at fair value through other comprehensive income

                 

Unlisted securities

     202,243        —          —         (63     (3     103        202,280  

Debt securities

     529        —          —         —         —         —          529  

 

In millions of won    December 31, 2022  
     Beginning
balance
     Acquisitions      Reclassified
category
     Valuation      Disposal      Foreign
currency
translation
and others
    Ending
balance
 

Financial assets at fair value

                   

Financial assets at fair value through profit or loss Cooperative

   5,797        400        —          132        —          —         6,329  

Financial assets at fair value through other comprehensive income

                   

Unlisted securities

     160,790        9,451        —          33,237        —          (1,235     202,243  

Debt securities

     491        —          —          38        —          —         529  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

45.

Service Concession Arrangements

 

  (i)

Significant terms and concession period of the arrangement

As for the Semangka hydroelectric power-generation business(BOT) in Indonesia, the Group has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Group provides electricity generated and charge tariff rates designed to recover capital cost, fixed O&M cost, water usage cost, variable O&M cost and special facilities cost during the concession period after building, rehabilitating, and operating the power plant for approximately 30 years (2018~2048) subsequent to the completion of plant construction.

 

  (ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2018 to 2048. At the end of the concession period, PT PLN has an option to take over the ownership of the power plant from the Group.

 

  (iii)

Classification method

This project allows PT PLN to acquire ownership of the plant after the end of the 30 years contract period.

 

  (iv)

The Group’s expected future collections of service concession arrangements as of March 31, 2023 are as follows:

 

In millions of won       

Type

   Amounts  

Less than 1 year

   32,689  

1 ~ 2 years

     32,615  

2 ~ 3 years

     32,655  

Over 3 years

     553,662  
  

 

 

 
   651,621  
  

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties

 

(1)

Related parties of the Group as of March 31, 2023 are as follows:

 

Type

  

Related party

Parent    Republic of Korea government

Subsidiaries

(161 subsidiaries)

   Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company, S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, KEPCO KPS Philippines Corp., KOSPO Chile SpA, PT. KOWEPO Sumsel Operation And Maintenance Services, Commerce and Industry Energy Co., Ltd., Gyeongju Wind Power Co., Ltd., California Power Holdings, LLC, EWP Renewable Corporation, Hee Mang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., KOEN Bylong Pty., Ltd., KOWEPO Bylong Pty., Ltd., KOSPO Bylong Pty., Ltd., EWP Bylong Pty., Ltd., KOWEPO Lao International, KOMIPO Bylong Pty., Ltd., Energy New Industry Specialized Investment Private Investment Trust., KEPCO US Inc., KEPCO Mangilao Holdings LLC, Mangilao Investment LLC, KEPCO Mangilao Solar, LLC, Jeju Hanlim Offshore Wind Co., Ltd., PT. Siborpa Eco Power, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd., Guam Ukudu Power LLC, K-SOLAR SHINAN Co., Ltd., KPS Partners Co., Ltd., KEPCO E&C Service Co., Ltd., Moha solar Co., Ltd., KHNP USA LLC, KOMIPO Vanphong Power Service LLC, Ogiri Solar Power Co., Ltd., BSK E-New Industry Fund X, Energy Innovation Fund I, KHNP Chile SpA, Yeong Yang Apollon Photovoltaic Co., Ltd., Yeong Yang Corporation Co., Ltd., SolarVader Co., Ltd., Yeong Yang Innovation Co., Ltd., Yeong Yang Horus Photovoltaic Co., Ltd., Yeong Yang Solar Management Co., Ltd., LSG Hydro Power Limited, KOEN Bio Co., Ltd., KOMIPO Energy Solution America, LLC, Elara Investment Holdings, LLC, Elara Equity Holdings, LLC, Elara Class B Holdings, LLC, Elara Class B Member, LLC, Elara Development Holdings, LLC, KOMIPO Development, LLC, Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., KOWEPO Europe B.V., CVS Equity Holdings, LLC, CVS Class B Holdings, LLC, CVS Development Holdings, LLC, CVS Development, LLC, CVS Class B Member, LLC, CVS Energy Holdings, LLC, Concho Valley Energy, LLC, Concho Valley Solar, LLC, Jeongam Wind Power Co., Ltd., Yeongdeok Sunrise Wind Power Co., Ltd., UI Carbon-Neutrality Fund, KA Power Limited, Western Power Changgi Solar Co., Ltd., Digital Innovation Growth Fund, EWP Australia Pty., Ltd., Columboola Solar Farm Hold Co Pty., Ltd., J Wind First, LLC, KEPCO Holding Company, KEPCO for Maintenance Company, KOSPO Trumbull LLC, Changjuk Wind Power Co., Ltd., KEPCO KPS South Africa Pty., Ltd., Chile Solar JV SpA

Associates

(95 associates)

   Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Taebaek Guinemi Wind Power Co., Ltd., Daeryun Power Co., Ltd., KNH Solar Co., Ltd., S-Power Co., Ltd., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Hansuwon KNP Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., Yaksu ESS Co., Ltd., PND Solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., Gwangbaek Solar Power Investment Co., Ltd., Go deok Clean Energy Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Goesan Solar park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., Kosture Co., Ltd., Taebaek Gadeoksan Wind Power Co., Ltd., Chuncheon Green Energy Co., Ltd., Yeomsubong Wind Power Co., Ltd., Yeongyang Wind Power Corporation II, Haeparang Energy Co., Ltd., Saemangeum Sebit Power Plant Co., Ltd., Boulder Solar III, LLC, PlatformN. Co., Ltd., PT. Cirebon Energi Prasarana, Future Convergence Technology Laboratory. Co., Ltd., ECO Motion Co., Ltd.(formerly, SC E&G Co., Ltd.), REC’s Innovation Co., Ltd.(formerly, Wang San Engineering. Co., Ltd.), ACE, Co., Ltd., Environment and Energy Co., Ltd., Green Radiation Co., Ltd., Santiago Solar Power SpA, Yanggu Floating Photovoltaic Power Plant Inc.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(1)

Related parties of the Group as of March 31, 2023 are as follows, continued:

 

Type

  

Related party

Joint ventures

(107 joint ventures)

   Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P., ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co., Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., Horus Solar, S.A. de C.V., Recursos Solares PV de Mexico II, S.A. de C.V., Sunmex Renovables, S.A. de C.V., Stavro Holding II A.B., Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., Dayone Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco Co., Ltd., CAES, LLC, Hapcheon Floating Photovoltaic Power Plant Inc., Busan Industrial Solar Power Co., Ltd., Bitsolar Energy Co., Ltd., Naepo Green Energy Co., Ltd., Pulau Indah O&M Sdn. Bhd., Guadalupe Solar SpA, Omisan Wind Power Co., Ltd., Foresight Iberian Solar Group Holding, S.L., Yeongwol Eco Wind Co., Ltd., Gurae Resident Power Co., Ltd., Cheongju Eco Park Co., Ltd., Prime Swedish Holding AB, Enel X Midland Photovoltaic, LLC, Geumsungsan Wind Power Co., Ltd., KEPCO KPS CARABAO Corp., Goheung New Energy Co., Ltd., Gunsan Land Solar Co., Ltd., CapMan Lynx SCA, SICAR, International Offshore Power Transmission Holding Company Limited, Eumseong Eco Park Co., Ltd., Songsan Green Energy Co., Ltd., Changwon Nu-ri Energy Co., Ltd., Hasami Wind Farm Corporation, PungBack Wind Farm Corporation, Seobusambo highway photovoltaics Co., Ltd., Seungmun Green Energy, Pyeongchang Wind Power Co., Ltd., Trumbull Asset Management, LLC, S-Power Chile SpA, Taebaek Wind Power Co., Ltd., Yangyang Suri Wind Power Co., Ltd., KEPCO for Power Company
Other    Korea Development Bank

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(2)

Transactions between the Group and its subsidiaries are eliminated during the consolidation and are not disclosed in notes.

 

(3)

Related party transactions for the three-month periods ended March 31, 2023 and 2022 are as follows:

<Sales and Others>

 

In millions of won         Sales and others  

Company name

  

Transaction type

   March 31, 2023      March 31, 2022  

<Associates>

        

Korea Gas Corporation

   Electricity sales    39,767        80,520  

Goseong Green Power Co., Ltd.

   Fuel sales      187,849        203,852  

Dongducheon Dream Power Co., Ltd.

   Electricity sales      2,647        2,513  

S-Power Co., Ltd.

   Service      1,100        1,066  

GS Donghae Electric Power Co., Ltd.

   Electricity sales      10,914        1,006  

Shin Pyeongtaek Power Co., Ltd.

   Electricity sales      33,609        7,224  

Gangneung Eco Power Co., Ltd.

   Fuel sales      248,358        3,393  

Daeryun Power Co., Ltd.

   Electricity sales      872        462  

Korea Electric Power Industrial Development Co., Ltd.

   Service      3,990        3,735  

Korea Power Exchange

   Service      2,930        2,489  

Daewon Green Energy Co., Ltd.

   Electricity sales      4        —    

Gangwon Wind Power Co., Ltd.

   Electricity sales      2,309        1,447  

Busan Green Energy Co., Ltd.

   Electricity sales      1,424        4  

Hyundai Eco Energy Co., Ltd.

   Electricity sales      947        49  

Taebaek Gadeoksan Wind Power Co., Ltd.

   Electricity sales      11        1,784  

Saemangeum Sebit Power Plant Co., Ltd.

   Electricity sales      416        —    

Noeul Green Energy Co., Ltd.

   Electricity sales      3,290        8  

Muan Sunshine Solar Power Plant Co., Ltd.

   Electricity sales      345        6  

Anjwa Smart Farm & Solar City Co., Ltd.

   Electricity sales      1,498        334  

Muan Solar Park Co., Ltd.

   Electricity sales      2,771        684  

PT. Cirebon Electric Power

   Others      238        1,268  

Jeju Gimnyeong Wind Power Co., Ltd.

   Electricity sales      74        —    

Samcheok Eco Materials Co., Ltd.

   Electricity sales      244        151  

Others (Hyundai Green Power Co., Ltd. and 38 others)

   Electricity sales      10,745        11,966  

<Joint ventures>

        

Chun-cheon Energy Co., Ltd.

   Electricity sales      628        731  

Daegu Green Power Co., Ltd.

   Electricity sales      352        245  

Daesan Green Energy Co., Ltd.

   Electricity sales      200        34  

Cheongju Eco Park Co., Ltd.

   Electricity sales      5        —    

Seokmun Energy Co., Ltd.

   Service      657        324  

Yeongam Solar Power Co., Ltd.

   Electricity sales      711        93  

Amman Asia Electric Power Company

   Others      3,231        5,121  

Cheongna Energy Co., Ltd.

   Others      10,662        15,642  

KEPCO SPC Power Corporation

   Others      346        345  

Yeonggwang Wind Power Co., Ltd.

   Electricity sales      278        269  

Solaseado Solar Power Co., Ltd.

   Electricity sales      459        425  

Kelar S.A.

   Service      6,937        6,238  

Dayone Energy Co., Ltd.

   Service      589        2,676  

Yeonggwangbaeksu Wind Power Co., Ltd.

   Electricity sales      474        464  

Bitsolar Energy Co., Ltd.

   Electricity sales      87        80  

Rabigh Electricity Company

   Others      —          237  

Jamaica Public Service Company Limited

   Others      797        28  

KW Nuclear Components Co., Ltd.

   Service      1,063        1,908  

Busan Shinho Solar Power Co., Ltd.

   Electricity sales      1,177        484  

Samsu Wind Power Co., Ltd.

   Electricity sales      514        —    

Others (Chungsongmeon BongSan wind power Co., Ltd. and 51 others)

   Electricity sales      91,971        108,256  

<Others>

        

Korea Development Bank

   Electricity sales      1,180        940  
   Interest income      242        544  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(3)

Related party transactions for the three-month periods ended March 31, 2023 and 2022 are as follows, continued:

 

<Purchase and Others>

 

In millions of won         Purchase and others  

Company name

  

Transaction type

   March 31, 2023      March 31, 2022  

<Associates>

        

Korea Gas Corporation

   Fuel purchase    3,701,590        2,896,582  

Goseong Green Power Co., Ltd.

   Electricity sales      391,720        465,817  

Dongducheon Dream Power Co., Ltd.

   Electricity sales      705,977        488,991  

S-Power Co., Ltd.

   Service      348,587        334,487  

GS Donghae Electric Power Co., Ltd.

   Electricity sales      281,804        276,985  

Shin Pyeongtaek Power Co., Ltd.

   Electricity sales      393,546        235,559  

PT. Bayan Resources TBK

   Others      30,072        24,600  

Daeryun Power Co., Ltd.

   Electricity sales      139,468        124,627  

Korea Electric Power Industrial Development Co., Ltd.

   Service      67,859        56,693  

Korea Power Exchange

   Service      27,295        25,933  

Daewon Green Energy Co., Ltd.

   Others      12,882        5,906  

Gangwon Wind Power Co., Ltd.

   Electricity sales      11,068        12,248  

Busan Green Energy Co., Ltd.

   Electricity sales      5,657        2,575  

Hyundai Eco Energy Co., Ltd.

   Electricity sales      5,744        9,753  

Taebaek Gadeoksan Wind Power Co., Ltd.

   Electricity sales      9,035        7,501  

Saemangeum Sebit Power Plant Co., Ltd.

   Electricity sales      5,597        —    

Noeul Green Energy Co., Ltd.

   Electricity sales      3,429        2,415  

Muan Sunshine Solar Power Plant Co., Ltd.

   Electricity sales      5,210        4,207  

Anjwa Smart Farm & Solar City Co., Ltd.

   Electricity sales      3,332        4,167  

Muan Solar Park Co., Ltd.

   REC and others      3,472        4,208  

Jeju Gimnyeong Wind Power Co., Ltd.

   Electricity sales      3,323        3,623  

Samcheok Eco Materials Co., Ltd.

   Electricity sales      2,481        4,243  

Others (Hyundai Green Power Co., Ltd. and 38 others)

   Electricity sales      20,668        26,348  

<Joint ventures>

        

Chun-cheon Energy Co., Ltd.

   Electricity sales      198,368        147,445  

Daegu Green Power Co., Ltd.

   Electricity sales      159,849        137,979  

Daesan Green Energy Co., Ltd.

   Electricity sales      39,907        21,504  

Cheongju Eco Park Co., Ltd.

   Electricity sales      22,410        24,914  

Seokmun Energy Co., Ltd.

   Service      14,944        16,515  

Yeongam Solar Power Co., Ltd.

   Electricity sales      7,892        15,485  

Cheongna Energy Co., Ltd.

   Service      59        63  

Yeonggwang Wind Power Co., Ltd.

   Electricity sales      7,964        10,900  

Solaseado Solar Power Co., Ltd.

   Electricity sales      4,940        8,170  

Dayone Energy Co., Ltd.

   Service      3,998        3,769  

Yeonggwangbaeksu Wind Power Co., Ltd.

   Electricity sales      3,676        4,979  

Bitsolar Energy Co., Ltd.

   Electricity sales      2,327        2,754  

Jamaica Public Service Company Limited

   Others      37        —    

KW Nuclear Components Co., Ltd.

   Service      2,937        —    

Busan Shinho Solar Power Co., Ltd.

   Electricity sales      2,309        2,397  

Samsu Wind Power Co., Ltd.

   Electricity sales      3,147        3,226  

Others (Chungsongmeon BongSan wind power Co., Ltd. and 51 others)

   Electricity sales      24,091        10,016  

<Others>

        

Korea Development Bank

   Interest expense      1,454        1,070  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(4)

Receivables and payables arising from related party transactions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won         Receivables      Payables  

Company name

  

Type

   March 31, 2023      December 31, 2022      March 31, 2023      December 31, 2022  

<Associates>

              

Korea Gas Corporation

   Trade receivables    9,362        12,415        —          —    
   Non-trade receivables and others      1,071        54,232        —          —    
   Trade payables      —          —          1,098,421        1,882,607  
   Non-trade payables and others      —          —          126        1,294  

Goseong Green Power Co., Ltd.

   Trade receivables      20,974        76,254        —          —    
   Non-trade receivables and others      10        14        —          —    
   Trade payables      —          —          125,093        182,095  
   Non-trade payables and others      —          —          51,725        52,515  

Dongducheon Dream Power Co., Ltd.

   Trade receivables      735        592        —          —    
   Non-trade receivables and others      548        270        —          —    
   Trade payables      —          —          215,687        293,256  

S-Power Co., Ltd.

   Trade receivables      90        77        —          —    
   Non-trade receivables and others      43        44        —          —    
   Trade payables      —          —          133,903        135,504  
   Non-trade payables and others      —          —          26        11  

Shin Pyeongtaek Power Co., Ltd.

   Trade receivables      1,377        7,375        —          —    
   Non-trade receivables and others      39,008        1,068        —          —    
   Trade payables      —          —          142,938        109,274  
   Non-trade payables and others      —          —          949        101  

GS Donghae Electric Power Co., Ltd.

   Trade receivables      673        872        —          —    
   Non-trade receivables and others      20,707        1,558        —          —    
   Trade payables      —          —          90,115        72,947  
   Non-trade payables and others      —          —          79        14,565  

Daeryun Power Co., Ltd.

   Trade receivables      207        195        —          —    
   Trade payables      —          —          37,542        55,725  

PT. Bayan Resources TBK

   Non-trade receivables and others      —          43,365        —          —    
   Non-trade payables and others      —          —          8,932        —    

Busan Green Energy Co., Ltd.

   Trade receivables      1        1        —          —    
   Non-trade receivables and others      28,100        26,681        —          —    
   Non-trade payables and others      —          —          3,336        4,415  

Gangneung Eco Power Co., Ltd.

   Trade receivables      54,739        19,364        —          —    
   Non-trade receivables and others      259        478        —          —    
   Non-trade payables and others      —          —          227        94  

Taebaek Gadeoksan Wind Power Co., Ltd.

   Non-trade receivables and others      —          97        —          —    
   Trade payables      —          —          12,201        12,739  
   Non-trade payables and others      —          —          4        5  

Noeul Green Energy Co., Ltd.

   Trade receivables      3        3        —          —    
   Non-trade receivables and others      12,647        9,365        —          —    
   Non-trade payables and others      —          —          2,202        2,468  

Gunsan Bio Energy Co., Ltd.

   Non-trade receivables and others      11,728        11,728        —          —    

Others (Hyundai Green Power Co., Ltd. and 38 others)

   Trade receivables      27,254        1,895        —          —    
   Non-trade receivables and others      11,111        13,635        —          —    
   Trade payables      —          —          27,966        19,259  
   Non-trade payables and others      —          —          24,184        18,538  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(4)

Receivables and payables arising from related party transactions as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won         Receivables      Payables  

Company name

  

Type

   March 31, 2023      December 31, 2022      March 31, 2023      December 31, 2022  

<Joint ventures>

              

Chun-cheon Energy Co., Ltd.

   Trade receivables    134        124        —          —    
   Non-trade receivables and others      —          165        —          —    
   Trade payables      —          —          61,665        79,117  
   Non-trade payables and others      —          —          2        —    

Daegu Green Power Co., Ltd.

   Trade receivables      68        53        —          —    
   Non-trade receivables and others      69        56        —          —    
   Trade payables      —          —          56,975        66,715  

Nghi Son 2 Power LLC

   Non-trade receivables and others      —          30,143        —          —    

Amman Asia Electric Power Company

   Trade receivables      2,173        4,243        —          —    
   Non-trade payables and others      —          —          21,906        21,653  

Kelar S.A.

   Trade receivables      5,522        3,653        —          —    
   Non-trade receivables and others      23,514        21,716        —          —    

Dayone Energy Co., Ltd.

   Trade receivables      69        79        —          —    
   Non-trade receivables and others      10,386        10,218        —          —    
   Trade payables      —          —          2,103        1,027  
   Non-trade payables and others      —          —          9,500        9,119  

Cheongna Energy Co., Ltd.

   Trade receivables      3,660        17,324        —          —    
   Non-trade receivables and others      1,535        1,654        —          —    
   Non-trade payables and others      —          —          532        1  

Others (Chungsongmeon BongSan wind power Co., Ltd. and 48 others)

   Trade receivables      54,709        66,257        —          —    
   Non-trade receivables and others      23,898        25,177        —          —    
   Trade payables      —          —          40,971        29,636  
   Non-trade payables and others      —          —          95,016        99,314  

<Others>

              

Korea Development Bank

   Accrued interest income      115        5        —          —    
   Non-trade receivables and others      31,252        30,836        —          —    
   Non-trade payables and others      —          —          17,337        101  
   Derivatives and others      87,812        67,662        —          3,759  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(5)

Loans and others arising from related party transactions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won                           

Type

  

Company name

   Beginning
balance
    Loans      Collection     Others     Ending
balance
 

Associates

  

KNOC Nigerian East Oil Co., Ltd.,

KNOC Nigerian West Oil Co., Ltd.

   31,473       —          —         844       32,317  
   (Allowance for doubtful accounts)      (10,751     —          —         (1,116     (11,867

Associates

  

Nepal Water & Energy Development

Company Private Limited

     19,914       —          —         (1,660     18,254  

Associates

   Xe-Pian Xe-Namnoy Power Co., Ltd.      22,936       —          —         661       23,597  

Associates

   PT Wampu Electric Power      9,171       —          —         430       9,601  

Associates

   PT Cirebon Energi Prasarana      29,569       —          —         1,351       30,920  

Associates

   Gunsan Bio Energy Co., Ltd.      12,396       —          —         —         12,396  
   (Allowance for doubtful accounts)      (12,396     —          —         —         (12,396

Associates

   Bigeum Resident Photovoltaic Power Co., Ltd.      11,212       —          —         —         11,212  

Associates

   Daejung Offshore Wind Power Co., Ltd.      1,000       —          —         —         1,000  

Associates

   Bitgoel Eco Energy Co., Ltd.      34,790       —          (710     —         34,080  

Associates

   Saemangeum Sebit Power Plant Co., Ltd      37,249       —          —         —         37,249  

Joint ventures

   Solaseado Solar Power Co., Ltd.      35,000       —          —         —         35,000  

Joint ventures

   Recursos Solares PV de Mexico II, S.A. de C.V.      8,457       1,240        —         308       10,005  

Joint ventures

   Horus Solar, S.A. de C.V.      19,287       —          —         555       19,842  

Joint ventures

   Sunmex Renovables, S.A. de C.V.      16,383       —          —         472       16,855  

Joint ventures

   Kelar S.A.      43,965       —          —         1,328       45,293  

Joint ventures

   DE Energia SpA      7,260       —          —         209       7,469  

Joint ventures

   Daehan Wind Power PSC      14,618       —          —         421       15,039  

Joint ventures

   Bitsolar Energy Co., Ltd.      3,165       —          —         —         3,165  

Joint ventures

   Daesan Green Energy Co., Ltd.      3,514       —          —         —         3,514  

Joint ventures

   Nghi Son 2 Power LLC      186,735       —          —         5,378       192,113  

Joint ventures

   Pulau Indah Power Plant Sdn. Bhd.      10,207       —          —         296       10,503  

Joint ventures

   Guadalupe Solar SpA      3,344       —          (101     93       3,336  

Joint ventures

   Foresight Iberian Solar Group Holding, S.L.      61,302       —          —         3,191       64,493  

Joint ventures

   Capman Lynx SCA, SICAR      31,628       —          —         2,079       33,707  
   (Allowance for doubtful accounts)      (4,467     —          —         —         (4,467

Joint ventures

   S-Power Chile SpA      253       —          —         7       260  
     

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
      627,214       1,240        (811     14,847       642,490  
     

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(6)

Borrowings arising from related party transactions as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won  

Related parties

   Type    Beginning
balance
     Borrowings      Repayment     Others      Ending
balance
 

Korea Development Bank

   Facility    96,584        —          (2,776     1,676        95,484  
   Others      2,133        —          (94     —          2,039  
   Operating funds      62,433        131,392        (119,333     21,200        95,692  
   Syndicated Loan      12,455        —          (913     353        11,895  
   EBL and others      48,892        3,351        —         1,124        53,367  
     

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 
      222,497        134,743        (123,116     24,353        258,477  
     

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to related parties as of March 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies

Primary guarantor

  

Principal obligor

  

Type of guarantees

   Credit limit     

Creditor

Korea Electric Power Corporation

  

Shuweihat Asia Operation & Maintenance Company

  

Performance guarantees

     USD 11,000     

Shuweihat Asia Power Investment B.V.

Korea Electric Power Corporation

  

Rabigh Operation & Maintenance Company Limited

  

Performance guarantees and others

     USD 1,387     

Rabigh Electricity Company

Korea Electric Power Corporation

  

Nghi Son 2 Power LLC

  

Performance guarantees

     USD 106,070     

SMBC Ho Chi Minh and others

Korea Electric Power Corporation

  

Barakah One Company

  

Debt guarantees

     USD 1,223,355     

Export-Import Bank of Korea and others

     

Performance guarantees and others

     USD 4,197,222     

Korea Electric Power Corporation

  

RE Holiday Holdings LLC

  

Performance guarantees (*9)

     USD 222,077     

EFS Renewables Holdings, LLC, CA-CIB and others

Korea Electric Power Corporation

  

RE Pioneer Holdings LLC

  

Performance guarantees

     USD 106,873     

EFS Renewables Holdings, LLC

Korea Electric Power Corporation

  

RE Barren Ridge 1 Holdings LLC

  

Performance guarantees (*9)

     USD 68,838     

Firstar Development, LLC

Korea Electric Power Corporation

  

Rabigh Electricity Company

  

Performance guarantees

     SAR 1,509     

Hana Bank

Korea Electric Power Corporation

  

Shuweihat Asia Power Investment B.V.

  

Performance guarantees

     USD 100,000     

ING Bank

Korea Electric Power Corporation

  

Amman Asia Electric Power Company

  

Performance guarantees

     USD 16,800     

Shinhan Bank

Korea Electric Power Corporation

  

Horus Solar, S.A. de C.V.

  

Other performance guarantees

     MXN 16,413     

CENACE and others

Korea Electric Power Corporation

  

Recursos Solares PV de Mexico II, S.A. de C.V.

  

Other performance guarantees

     MXN 1,518     

SEMARNAT

           USD 393     

CFE Transmission

Korea Electric Power Corporation

  

Sunmex Renovables, S.A. de C.V.

  

Other performance guarantees

     USD 9,078     

CENACE

           MXN 3,666     

SEMARNAT

Korea Electric Power Corporation

  

International Offshore Power Transmission Holding Company Limited

  

Performance guarantees

     USD 150,000     

Mizuho Bank

     

Other performance guarantees

     USD 7,000     

Credit Agricole

Korea Electric Power Corporation

  

Pulau Indah Power Plant Sdn. Bhd. (*11)

  

Collateralized money invested

     KRW 13,210     

Malaysian Trustee Berhad

Korea Electric Power Corporation

  

KEPCO for Power Company

  

Debt guarantees

     USD 60,000     

Riyad bank

     

Other performance guarantees

     USD 47,000     

SMBC Seoul and others

Korea Western Power Co., Ltd.

  

Cheongna Energy Co., Ltd.

  

Collateralized money invested

     KRW 14,926     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd.

  

Xe-Pian Xe-Namnoy Power Co., Ltd.

  

Collateralized money invested

     KRW 117,732     

Krung Thai Bank

     

Impounding bonus guarantees

     USD 5,000     

SK E&C

Korea Western Power Co., Ltd.

  

Rabigh Operation & Maintenance Company Limited

  

Performance guarantees and others

     SAR 11,200     

National Bank of Kuwait

Korea Western Power Co., Ltd.

  

Daegu Photovoltaic Co., Ltd.

  

Collateralized money invested

     KRW 2,449     

Korea Development Bank

Korea Western Power Co., Ltd.

  

Dongducheon Dream Power Co., Ltd.

  

Collateralized money invested (*5)

     KRW 51,131     

Kookmin Bank and others

     

Debt guarantees

     KRW 20,300     

BNK Securities

Korea Western Power Co., Ltd.

  

PT. Mutiara Jawa

  

Collateralized money invested

     KRW 3,529     

Woori Bank

Korea Western Power Co., Ltd.

  

Haeng Bok Do Si Photovoltaic Power Co., Ltd.

  

Collateralized money invested

     KRW 243     

Nonghyup Bank

Korea Western Power Co., Ltd.

  

Shin Pyeongtaek Power Co., Ltd.

  

Collateralized money invested

     KRW 155,796     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd.

  

Haemodum Solar Co., Ltd.

  

Collateralized money invested

     KRW 3,385     

Nonghyup Bank

Korea Western Power Co., Ltd.

  

Muan Solar Park Co., Ltd.

  

Collateralized money invested

     KRW 5,773     

IBK and others

Korea Western Power Co., Ltd.

  

Anjwa Smart Farm & Solar City Co., Ltd.

  

Collateralized money invested

     KRW 7,249     

Hana Bank and others

Korea Western Power Co., Ltd.

  

Seoroseoro Sunny Power Plant Co., Ltd.

  

Collateralized money invested

     KRW 860     

Hana Bank and others

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to related parties as of March 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies

Primary guarantor

  

Principal obligor

  

Type of guarantees

   Credit limit     

Creditor

Korea Western Power Co., Ltd.

  

YuDang Solar Co., Ltd.

  

Collateralized money invested

     KRW 540     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd.

  

Hapcheon Floating Photovoltaic Power Plant Inc.

  

Collateralized money invested

     KRW 8,012     

Nonghyup Bank and others

Korea Western Power Co., Ltd.

  

Yeongwol Eco Wind Co., Ltd.

  

Collateralized money invested

     KRW 3,263     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd.

  

Gurae Resident Power Co., Ltd.

  

Collateralized money invested

     KRW 389     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd

  

Gunsan Land Solar Co., Ltd.

  

Collateralized money invested

     KRW 19,958     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd

  

Seobusambo highway photovoltaics Co., Ltd.

  

Collateralized money invested

     KRW 3,140     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd

  

Eumseong Eco Park Co., Ltd.

  

Collateralized money invested

     KRW 7,769     

Kyobo Life Insurance Co., Ltd. and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Western Power Co., Ltd

  

PungBack Wind Farm Corporation

  

Collateralized money invested

     KRW 8,008     

Hanwha Life Insurance Co., Ltd and others

Korea East-West Power Co., Ltd.

  

Busan Shinho Solar Power Co., Ltd.

  

Collateralized money invested

     KRW 5,845     

Korea Development Bank and others

Korea East-West Power Co., Ltd.

  

Seokmun Energy Co., Ltd.

  

Collateralized money invested

     KRW 17,388     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

Chun-cheon Energy Co., Ltd.

  

Collateralized money invested

     KRW 33,354     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

     KRW 90,800     

Korea East-West Power Co., Ltd.

  

Honam Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 4,591     

Shinhan Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

GS Donghae Electric Power Co., Ltd.

  

Collateralized money invested

     KRW 255,438     

Korea Development Bank and others

Korea East-West Power Co., Ltd.

  

Yeonggwangbaeksu Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 3,317     

Kookmin Bank and others

Korea East-West Power Co., Ltd.

  

Yeonggwang Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 21,667     

KDB Capital Corporation and others

Korea East-West Power Co., Ltd.

  

Daesan Green Energy Co., Ltd.

  

Collateralized money invested

     KRW 18,399     

IBK

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

Taebaek Gadeoksan Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 20,290     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

PT. Tanjung Power Indonesia

  

Other guarantees

     USD 3,150     

PT. Adaro Indonesia

     

Guarantees for supplemental funding (*1)

     —       

Sumitomo mitsui banking and others

     

Collateralized money invested

     KRW 96,253     

MUFG and others

Korea East-West Power Co., Ltd.

  

South Jamaica Power Company Limited

  

Performance guarantees

     USD 14,400     

Credit Agricole and others

     

Collateralized money invested

     KRW 48,649     

JCSD Trustee Services Limited and others

Korea East-West Power Co., Ltd.

  

DE Energia SpA

  

Collateralized money invested

     KRW 9,811     

Mirae Asset Securities Co., Ltd. and others

     

Collateralized loans

     USD 5,728     
     

Payment guarantees (*7)

     USD 943     

Hana Bank

Korea East-West Power Co., Ltd.

  

Bitsolar Energy Co., Ltd.

  

Collateralized money invested

     KRW 352     

Mirae Asset Life Insurance Co., Ltd. and others

Korea East-West Power Co., Ltd.

  

Cheongju Eco Park Co., Ltd.

  

Collateralized money invested

     KRW 10,736     

Kyobo Life Insurance Co., Ltd. and others

Korea East-West Power Co., Ltd.

  

Busan Industrial Solar Power Co., Ltd.

  

Collateralized money invested

     KRW 994     

Shinhan Bank and others

     

Guarantees for supplemental funding (*1)

     —       

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to related parties as of March 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies

Primary guarantor

  

Principal obligor

  

Type of guarantees

   Credit limit     

Creditor

Korea East-West Power Co., Ltd.

  

Yangyang Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 10,770     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

Daewon Green Energy Co., Ltd.

  

Collateralized money invested

     KRW 4,586     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

Goheung New Energy Co., Ltd.

  

Collateralized money invested

     KRW 3,866     

Woori Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea East-West Power Co., Ltd.

  

Seungmun Green Energy

  

Collateralized money invested

     KRW 8,930     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Southern Power Co., Ltd.

  

KNH Solar Co., Ltd.

  

Collateralized money invested

     KRW 2,808     

Shinhan Bank and others

     

Performance guarantees and guarantees for supplemental funding (*1)

     —       

Korea Southern Power Co., Ltd.

  

Daeryun Power Co., Ltd.

  

Collateralized money invested

     KRW 26,711     

Korea Development Bank and others

Korea Southern Power Co., Ltd.

  

Daegu Green Power Co., Ltd.

  

Collateralized money invested

     KRW 29,973     

Shinhan Bank and others

     

Performance guarantees

     —       

Korea Southern Power Co., Ltd.

  

Kelar S.A.

  

Performance guarantees

     USD 49,862     

Hana Bank, MUFG

Korea Southern Power Co., Ltd.

  

Daehan Wind Power PSC

  

Performance guarantees

     USD 1,800     

Shinhan Bank

     

Payment guarantees (*6)

     USD 1,900     

Hana Bank

     

Collateralized money invested

     KRW 14,269     

Standard Chartered

Korea Southern Power Co., Ltd.

  

Pyeongchang Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 13,800     

Woori Bank, Shinhan Bank and others

     

Performance guarantees

     —       

Korea Southern Power Co., Ltd.

  

Taebaek Guinemi Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 13,532     

IBK

Korea Southern Power Co., Ltd.

  

Samcheok Eco Materials Co., Ltd.

  

Payment guarantees (*2)

     —       

SEM Investment Co., Ltd.

Korea Southern Power Co., Ltd.

  

Solaseado Solar Power Co., Ltd.

  

Collateralized money invested

     KRW 12,800     

Kookmin Bank and others

Korea Southern Power Co., Ltd.

  

Naepo Green Energy Co., Ltd.

  

Collateralized money invested (*8)

     —       

IBK and others

     

Guarantees for supplemental funding (*1)

     KRW 30,000     
     

Guarantees for other supplemental funding and performance guarantees (*1)

     —       

Korea Southern Power Co., Ltd.

  

Omisan Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 10,372     

Shinhan Bank and others

     

Guarantees for supplemental funding and performance guarantees (*1)

     —       

Korea Southern Power Co., Ltd.

  

Geumsungsan Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 3,637     

Kookmin Bank

     

Guarantees for supplemental funding (*1)

     —       

KOSPO Chile SpA

  

Kelar S.A.

  

Collateralized money invested

     KRW 125,730     

Export-Import Bank of Korea and others

KOSPO Chile SpA

  

Chester Solar I SpA

  

Collateralized money invested

     KRW 1,619     

IBK

KOSPO Chile SpA

  

Chester Solar IV SpA

  

Collateralized money invested

     KRW 818     

IBK

KOSPO Chile SpA

  

Chester Solar V SpA

  

Collateralized money invested

     KRW 281     

IBK

KOSPO Chile SpA

  

Diego de Almagro Solar SpA

  

Collateralized money invested

     KRW 1,146     

IBK

KOSPO Chile SpA

  

Laurel SpA

  

Collateralized money invested

     KRW 942     

IBK

Korea Midland Power Co., Ltd.

  

YeongGwang Yaksu Wind Electric Co., Ltd.

  

Collateralized money invested

     KRW 202     

IBK and others

Korea Midland Power Co., Ltd.

  

Hyundai Green Power Co., Ltd.

  

Collateralized money invested

     KRW 116,608     

Korea Development Bank and others

Korea Midland Power Co., Ltd.

  

PT. Cirebon Electric Power

  

Debt guarantees

     USD 4,758     

Mizuho Bank

Korea Midland Power Co., Ltd.

  

PT Wampu Electric Power

  

Debt guarantees

     USD 5,271     

SMBC

Korea Midland Power Co., Ltd.

  

Green Energy Electricity Generation Co., Ltd.

  

Collateralized money invested

     KRW 636     

IBK

     

Guarantees for supplemental (*1)

     —       

IBK and others

Korea Midland Power Co., Ltd.

  

Yaksu ESS Co., Ltd.

  

Collateralized money invested

     KRW 488     

IBK

Korea Midland Power Co., Ltd.

  

Namjeongsusang Solar Power Operation Co., Ltd.

  

Collateralized money invested

     KRW 308     

IBK

Korea Midland Power Co., Ltd.

  

Gwangbaek Solar Power Investment Co., Ltd.

  

Collateralized money invested

     KRW 5,111     

Kyobo Life Insurance Co., Ltd. and others

Korea Midland Power Co., Ltd.

  

Muan Sunshine Solar Power Plant Co., Ltd.

  

Collateralized money invested

     KRW 2,363     

IBK

Korea Midland Power Co., Ltd.

  

Goesan Solar park Co., Ltd.

  

Collateralized money invested

     KRW 2,581     

IBK

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to related parties as of March 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies

Primary guarantor

  

Principal obligor

  

Type of guarantees

   Credit limit     

Creditor

Korea Midland Power Co., Ltd.

  

Bitgoel Eco Energy Co., Ltd.

  

Collateralized money invested

     KRW 5,870     

IBK and others

     

Guarantees for supplemental funding (*1)

     —       

Korea Midland Power Co., Ltd.

  

Energyco Co., Ltd.

  

Collateralized money invested

     KRW 1,921     

Nonghyup Bank

     

Debt guarantees

     KRW 2,746     

Shinhan Bank

Korea Midland Power Co., Ltd.

  

Jeju Gimnyeong Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 947     

Nonghyup Bank

Korea Midland Power Co., Ltd.

  

Dongbu Highway Solar Co., Ltd.

  

Collateralized money invested

     KRW 307     

Shinhan Bank

Korea Midland Power Co., Ltd.

  

Seobu Highway Solar Co., Ltd.

  

Collateralized money invested

     KRW 331     

Shinhan Bank

Korea Midland Power Co., Ltd.

  

Yeongyang Wind Power Corporation II

  

Collateralized money invested

     KRW 7,974     

Korea Development Bank and others

Korea Midland Power Co., Ltd.

  

Haeparang Energy Co., Ltd.

  

Collateralized money invested

     KRW 2,179     

Templeton hana asset management Co. Ltd

     

Guarantees for supplemental funding (*1)

     —       

Korea Midland Power Co., Ltd.

  

Saemangeum Sebit Power Plant Co., Ltd. (*10)

  

Guarantees for supplemental funding (*1)

     —       

Kookmin Bank and others

Korea Midland Power Co., Ltd.

  

Yeomsubong Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 62     

Korea Development Bank

     

Guarantees for supplemental funding (*1)

     —       

Korea Development Bank

Korea South-East Power Co., Ltd.

  

Dayone Energy Co., Ltd.

  

Collateralized money invested (*3)

     —       

IBK

     

Guarantees for supplemental funding and others (*1,4)

     KRW 76,800     

NH investment & securities Co., Ltd. and others

Korea South-East Power Co., Ltd.

  

RES Technology AD

  

Collateralized money invested

     KRW 14,847     

UniCredit Bulbank and others

Korea South-East Power Co., Ltd.

  

ASM-BG Investicii AD

  

Collateralized money invested

     KRW 13,402     

UniCredit Bulbank and others

Korea South-East Power Co., Ltd.

  

Expressway Solar-light Power Generation Co., Ltd.

  

Collateralized money invested

     KRW 4,294     

Woori Bank

Korea South-East Power Co., Ltd.

  

Goseong Green Power Co., Ltd.

  

Collateralized money invested

     KRW 291,025     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

  

Gangneung Eco Power Co., Ltd.

  

Collateralized money invested

     KRW 257,695     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

  

PND Solar Co., Ltd.

  

Collateralized money invested

     KRW 1,280     

IBK

Korea South-East Power Co., Ltd.

  

Hyundai Eco Energy Co., Ltd.

  

Collateralized money invested

     KRW 6,764     

Samsung Life Insurance and others

Korea South-East Power Co., Ltd.

  

Jaeun Resident Wind Power Plant Co., Ltd.

  

Collateralized money invested

     KRW 2,237     

IBK

Korea South-East Power Co., Ltd.

  

Chungsongmeon BongSan wind power Co., Ltd.

  

Collateralized money invested

     KRW 2,739     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

  

Yeongam Solar Power Co., Ltd.

  

Collateralized money invested

     KRW 8,879     

Kookmin Bank and others

Korea South-East Power Co., Ltd.

  

Samsu Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 2,998     

Shinhan Bank and others

Korea South-East Power Co., Ltd.

  

Saemangeum Heemang Photovoltaic Co., Ltd.

  

Collateralized money invested

     KRW 13,445     

Woori Bank and others

Korea South-East Power Co., Ltd.

  

Nepal Water & Energy Development Company Private Limited

  

Collateralized money invested

     USD 97,105     

International Finance Corporation and others

     

Business reserve payment guarantee

     USD 33,333     

Korea Hydro & Nuclear Power Co., Ltd.

  

Noeul Green Energy Co., Ltd.

  

Collateralized money invested

     —       

Hana Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Busan Green Energy Co., Ltd.

  

Collateralized money invested

     KRW 3,546     

Shinhan Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Go deok Clean Energy Co., Ltd.

  

Collateralized money invested

     KRW 3,586     

Kookmin Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Cheong-Song Noraesan Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 3,560     

Woori Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Gwangyang Green Energy Co., Ltd.

  

Collateralized money invested

     KRW 24,984     

Shinhan Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Gangneung Sacheon Fuel Cell Co., Ltd.

  

Collateralized money invested

     KRW 4,038     

Hana Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Chuncheon Green Energy Co., Ltd.

  

Collateralized money invested

     KRW 9,026     

Hana Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

  

Yangyang Suri Wind Power Co., Ltd.

  

Collateralized money invested

     KRW 10,024     

Kookmin Bank and others

 

138


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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to related parties as of March 31, 2023 are as follows, continued:

 

(*1)

The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2)

Controlling and non-controlling common shareholders of Samcheok Eco Materials Co., Ltd. have pre-emption rights, if preferred shareholders intend to sell their shares until December 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of March 31, 2023, the Group has recognized derivative liabilities of 6,760 million related to the guarantee. Meanwhile, the Group is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*3)

The Group recognized an impairment loss on all of the equity securities of Dayone Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is 47,067 million.

(*4)

Pursuant to the guarantee agreement, the Group recognized other provisions of 7,396 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*5)

The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral.

(*6)

The Group provided a payment guarantee to Daehan Wind Power PSC for opening L/C for Debt Service Reserve Account (DSRA).

(*7)

This includes a guarantee related to L/C for debt repayment allowance provided to DE Energia SpA, a joint venture of the Group.

(*8)

The Group recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is 29,200 million.

(*9)

The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

(*10)

Saemangeum Sebit Power Plant Co., Ltd., the Group’s related party as of March 31, 2023, is raising a fund from kookmin bank and others amounting to 99.9 billion(remaining balance as of March 31, 2023 is 36.5 billion) through project financing commitment. The Group is going to provide the lender a guarantee up to 63.4 billion in the commitment except for 36.5 billion which is a senior loan, as shares of Saemangeum Sebit Power Plant Co., Ltd. owned by the group at the time of fund-raising.

(*11)

The Group, together with other shareholders, has provided a guarantee for the project financing of Pulau Indah Power Plant Sdn. Bhd., by establishing the right of pledge on the shares of Pulau Indah Power Plant Sdn. Bhd.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

46.

Related Parties, Continued

 

(8)

Guarantees received from related parties as of March 31, 2023 are as follows:

 

In millions of won  

Primary Guarantor

  

Type of guarantees

   Credit limit  

KAPES, Inc.

   Performance guarantees    17,225  
   Defect guarantees      2,532  

 

(9)

Derivatives transactions with related parties as of March 31, 2023 are as follows:

(i) Currency Swap

 

In millions of won and thousands of foreign currencies except contract exchange rate information  

Counterparty

   Contract year      Contract amounts      Contract interest rate
per annum
    Contract
exchange
rate (in won)
 
   Pay      Receive      Pay     Receive  

Korea Development Bank

     2019~2024      177,600        USD 150,000        1.24     2.50   1,184.00  
     2020~2025        241,320        USD 200,000        0.54     1.13     1,206.60  
     2022~2026        283,820        USD 200,000        4.67     5.38     1,419.10  
     2022~2028        283,820        USD 200,000        5.12     5.50     1,419.10  
     2021~2026        118,170        USD 100,000        1.11     1.13     1,181.70  
     2015~2025        111,190        USD 100,000        2.62     3.25     1,111.90  
     2017~2027        111,610        USD 100,000        2.31     3.13     1,116.10  
     2018~2028        108,600        HKD 800,000        2.69     3.35     135.75  
     2018~2023        170,280        USD 150,000        2.15     3.75     1,135.20  
     2019~2027        119,978        CHF 100,000        1.43     0.05     1,199.78  
     2021~2026        111,400        USD 100,000        0.93     1.25     1,114.00  
     2022~2027        262,000        USD 200,000        3.63     4.25     1,310.00  
     2020~2026        118,910        USD 100,000        0.61     1.00     1,189.10  
     2021~2026        114,230        USD 100,000        1.27     1.25     1,142.30  
     2022~2027        123,710        USD 100,000        3.41     3.63     1,237.10  
     2018~2023        320,880        USD 300,000        2.03     3.75     1,069.60  
     2022~2025        128,560        USD 100,000        3.37     4.13     1,285.60  
     2018~2023        169,335        USD 150,000        2.26     3.88     1,128.90  
     2020~2025        122,780        USD 100,000        0.93     1.75     1,227.80  
     2022~2025        252,360        USD 200,000        2.83     3.60     1,261.80  

(ii) Currency forward

 

In millions of won and thousands of USD  

Counterparty

   Contract
date
     Maturity
date
     Contract amounts      Contract
exchange
rate (in won)
 
   Pay      Receive  

Korea Development Bank

     2023.03.27        2023.04.05      64,978        USD 50,000      1,299.55  

 

(10)

The Group considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Group recorded salaries and other compensations related to the key management personnel as follows:

 

In millions of won              

Type

   March 31, 2023      March 31, 2022  

Salaries

   225        232  

Retirement benefits

     15        8  
  

 

 

    

 

 

 
   240        240  
  

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

47.

Statement of Cash Flows

 

(1)

Significant non-cash transactions for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won              

Transactions

   March 31, 2023      March 31, 2022  

Transfer from construction-in-progress to other assets

   2,425,036        1,458,181  

Recognition of asset retirement cost and related provision for decommissioning costs

     65,242        21,747  

Transfer from provision for disposal of used nuclear fuel to accrued expenses

     102,165        51,112  

Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities

     4,081,110        6,366,705  

Transfer from inventory to stored nuclear fuel

     260,804        152,111  

Recognition of right-of-use assets and other

     19,436        24,413  

 

(2)

Changes in liabilities incurred from financing activities for the three-month periods ended March 31, 2023 and 2022 are as follows:

 

In millions of won    March 31, 2023  
                  Non-cash changes         
     Beginning
balance
     Cash flows     Increase      Effect of
exchange rate
fluctuations
and others
     Ending
balance
 

Borrowings and debt securities

   120,605,365        5,230,068       —          485,474        126,320,907  

Lease liabilities

     4,163,143        (163,649     20,232        86,406        4,106,132  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
   124,768,508        5,066,419       20,232        571,880        130,427,039  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
In millions of won    March 31, 2022  
                  Non-cash changes         
     Beginning
balance
     Cash flows     Increase      Effect of
exchange rate
fluctuations
and others
     Ending
balance
 

Borrowings and debt securities

   80,529,513        8,658,515       —          240,572        89,428,600  

Lease liabilities

     4,410,503        (158,800     21,155        77,357        4,350,215  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
   84,940,016        8,499,715       21,155        317,929        93,778,815  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

48.

Commitments for Expenditure

 

(1)

The commitments for acquisition of property, plant and equipment as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  

Contracts

   Commitment
amounts
     Remaining
liability balances
     Commitment
amounts
     Remaining
liability balances
 

Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)

   57,203        8,834        57,203        12,595  

Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)

     50,151        37,638        50,151        37,638  

Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S

     37,168        16,788        37,168        16,788  

Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S

     37,744        140        37,744        140  

Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others

     58,271        746        58,269        3,883  

Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S

     33,841        22,741        33,841        25,641  

Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)

     35,016        703        35,949        3,232  

Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments

     202,795        104,544        202,795        95,428  

Purchase of GIS (362KV, 6300A, 63KA) 19 – Shinyangsan S/S

     32,460        13,167        31,834        17,334  

Purchase of cable (PVC, 1C, 2500SQ) 57,868M and others (Goduk-Seoansung)

     40,937        654        40,937        3,748  

Purchase of cable (PVC, 1C, 2000SQ) 87,732M and others (Eulwangboonki)

     36,446        1,015        36,155        10,274  

GIS(362KV,6300A,63KA) 18 – Wolsung S/Y

     32,090        32,090        32,090        32,090  

Purchase of cable (FR CNCO-W,1C,325SQ) 672,300M

     32,139        14,438        31,387        19,213  

Purchase of cable (TR CNCE-W,1C,325SQ) 1,342,000M

     78,305        24,217        75,620        40,497  

Purchase of cable (TR CNCE-W,1C,600SQ) 377,000M

     33,029        3,022        31,851        17,478  

Purchase of cable (TR CNCE-W/AL,1C,400SQ) 2,175,300M

     53,064        15,338        53,064        29,436  

System stabilization ESS equipment (Bubuk S/S) 1 Type

     222,300        222,300        222,300        222,300  

System stabilization ESS equipment (Shinnamwon S/S) Type 1

     211,500        211,500        211,500        211,500  

System stabilization ESS equipment (Yeongcheon S/S) Type 1

     73,104        73,104        73,104        73,104  

Concrete pole (10M, general purpose, 500KGF) 111,000 ea and four other equipments

     72,644        67,987        —          —    

Advanced EType low voltage electronic watt-hour meter 1,311,552 ea

     36,103        36,103        —          —    

System stabilization ESS equipment (Yesan S/S) 1 Type

     56,403        56,403        —          —    

System stabilization ESS equipment (Hamyang S/S) 1 Type

     35,609        35,609        —          —    

Construction of Saeul Units (#3,4)

     9,800,424        2,075,126        9,800,424        2,455,673  

Construction of Shin-Hanul Units (#1,2)

     10,357,474        —          10,327,372        97,889  

Construction of Shin-Hanul Units (#3,4)

     11,007,232        10,840,998        11,007,232        10,858,828  

Other 43 contracts

     885,362        412,262        853,941        425,149  

Purchase of furnace for construction of Shin-Seocheon thermal power plant

     305,209        5,132        305,209        5,132  

Purchase of turbine generator for construction of Shin-Seocheon thermal power plant

     107,333        6,214        107,333        6,214  

Purchase of main machine for Jeju LNG combined

     166,287        10,898        166,287        10,898  

Purchase of equipments for the construction project of Boryeong indoor coal storage yard

     328,587        291,917        318,197        287,965  

Service of designing Taean Units (#9,10)

     112,909        12,468        112,909        12,468  

Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant

     125,918        28,613        126,302        32,748  

Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant

     221,986        24,840        221,997        38,714  

Construction of Gimpo combined heat & power plant

     181,798        56,558        181,798        56,558  

Purchase of gas turbines, steam turbines, and accessories for Gumi natural gas power plant

     197,983        197,983        197,983        197,983  

Construction of Gumi natural gas power plant

     204,094        204,094        204,094        204,094  

Installation of natural gas supply facility at Gumi natural gas power plant

     70,620        70,620        70,620        70,620  

Purchase of coal handling machine for construction of Samcheok Units (#1,2)

     328,953        2,882        299,048        6,687  

Purchase of main equipment for Namjeju

     140,144        3        140,144        3  

Purchase of main equipment for Shin-Sejong combined thermal power plant

     234,392        26,813        234,392        32,472  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

48.

Commitments for Expenditure, Continued

 

(1)

The commitments for acquisition of property, plant and equipment as of March 31, 2023 and December 31, 2022 are as follows, continued:

 

In millions of won    March 31, 2023      December 31, 2022  

Contracts

   Commitment
amounts
     Remaining
liability balances
     Commitment
amounts
     Remaining
liability balances
 

Purchase of Hadong thermal power indoor carboniferous plant

   179,095        85,288        162,814        105,504  

Purchase of phase 2 power generation facility for Yeongwol fuel cells

     94,710        30,527        86,100        30,527  

Purchase of fuel cell power generation facilities for the fifth stage of Shinincheon headquarters

     90,156        50,459        81,960        81,960  

 

(2)

As of March 31, 2023, details of contracts for inventory purchase commitment are as follows:

The Group imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Group entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:

 

Type

   Periods      Contracted quantity

Concentrate

     2023 ~ 2033      21,400 Ton U3O8

Transformed

     2023 ~ 2030      16,300 Ton U

Enrichment

     2023 ~ 2032      18,893 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Group, is 1,285 Ton U (contract periods : 2014 ~ 2026).

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

49.

Contingencies and Commitments

 

(1)

Ongoing litigations and claims related with contingent liabilities and contingent assets as of March 31, 2023 and December 31, 2022 are as follows:

 

In millions of won    March 31, 2023      December 31, 2022  
     Number of cases      Claim amount      Number of cases      Claim amount  

As the defendant

     665      906,557        653      981,878  

As the plaintiff

     238        545,982        238        599,809  

As of March 31, 2023, there are 5 ongoing litigations and 1 arbitration case between consolidated entities.

 

  1)

The Group is the defendant against a number of claims. The following is ongoing claim pertaining to the Group which can potentially be significant:

There are multiple ongoing claims against the Group related to ordinary wages, requesting payment of unpaid wages. The Group believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. Accordingly, the Group recognized 3,313 million as litigation provisions in relation to the lawsuit as of March 31, 2023.

 

  2)

In addition to the abovementioned significant ongoing claims, there are 9 arbitration cases pertaining to the Group as of March 31, 2023 and the significant arbitration cases for the three-month period ended March 31, 2023 are as follows:

 

  i)

In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Group to the Indian Council of Arbitration due to disagreements in the contract, but the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

 

  ii)

For the year ended December 31, 2022, the Group filed an arbitration application with Daehan Heavy Electric Machinery Co.,Ltd. and Jooshin Engineering Co., Ltd. on September 15, 2022 to Korean Commercial Arbitration Board due to a disagreement on the share ratio of the compensation amount. As of the March 31, 2023, the Group cannot reasonably estimate whether the inflow of economic benefits is probable as a result of the arbitration.

 

  iii)

For the year ended December 31, 2022, the Group filed an arbitration application with Westinghouse Electric Company LLC to Korean Commercial Arbitration Board, requesting to confirm whether the Group is subject to nuclear power plant export control procedures or not. As of the March 31, 2023, the Group cannot reasonably estimate whether the inflow of economic benefits is probable as a result of the arbitration.

 

  iv)

For the three-month period ended March 31, 2023, Hitachi Energy Sweden filed an arbitration against the Group regarding the request for additional payment due to the capacity increase of some facilities and the withdrawal of liquidated damage in connection with the Shin Young-ju and Shin Jecheon substation TCSC construction projects. The Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

 

  v)

For the three-month period ended March 31, 2023, JBC Co., Ltd. filed an arbitration against the Group regarding the late delivery of the service, requesting the reduction of the payment to the portion of service that was not performed, according to the penalty regulations. The Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(2)

Guarantees of payments and commitments provided to other companies as of March 31, 2023 are as follows:

 

  1)

The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

 

  2)

The Group has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees of mutual investment of USD 5,947 thousand, which is equivalent to the ownership interest of PT BS Energy and PT Nusantara Hydro Alam, in order to guarantee the expenses related to hydroelectric power business of Tanggamus, Indonesia.

 

  3)

The Group has provided USD 18,500 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

 

  4)

The Group has provided the syndicate of lenders of PT Indo Raya Tenaga, the business corporation of PT Barito Wahana Tenaga, a guarantee by establishing the right of pledge on the shares of PT Barito Wahana Tenaga for project financing of PT Barito Wahana Tenaga as of March 31, 2023.

 

  5)

The Group has provided Axia Power Holdings B.V. and others a performance guarantee up to USD 54,000 thousand for the implementation of Cirebon thermal power generation project in Indonesia.

 

  6)

The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,588,165 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

 

  7)

The Group has provided the SMBC with the guarantees of mutual investment of USD 5,271 thousand, which is equivalent to the ownership interest of PT Mega Power Mandiri, in order to guarantee the expenses related to hydroelectric power business of Wampu, Indonesia.

 

  8)

The Group has provided USD 50,000 thousand for a performance guarantee to Morgan Stanley Capital Group Inc., to guarantee the electricity purchase contract in relation to photovoltaic power generation project in USA.

 

  9)

The Group has provided RBC Community Investments Impact Renewables HoldCo-1, LLC. a performance guarantee regarding weatherization in relation with tax investors up to USD 3,000 thousand for the of the power plant construction for Concho Valley solar power project in the United States.

 

  10)

The Group has provided USD 54,000 thousand for a performance guarantee to PT. Cirebon Electro Power, to guarantee the Cirebon coal-fired power plant operation and maintenance project in Indonesia.

 

  11)

Nonghyup Bank is providing a payment guarantee of USD 4,756 thousand to Mizuho Bank, Ltd., a third party, for the guarantee of debt repayment reserves of PT Cirebon Electric Power’s Indonesia Cirebon power plant project.

 

  12)

The Group has provided Morgan Stanley Renewables Inc. a guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

 

  13)

The Group has provided EUR 10,000 thousand for a performance guarantee to Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch through Kookmin Bank, to guarantee the opening of VAT payment loan account for Guba Buget wind power project in Sweden.

 

  14)

The Group has provided EUR 5,022 thousand for a performance guarantee to Microsoft through Kookmin Bank, to guarantee the implementation of the power plant construction for Guba Buget wind power project in Sweden.

 

  15)

The Group has provided EUR 9,980 thousand of a performance guarantee to Ellevio through Shinhan Bank, to guarantee the performance of the electric power transmission equipment connection construction for Guba Buget wind power project in Sweden.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(2)

Guarantees of payments and commitments provided to other companies as of March 31, 2023 are as follows, continued:

 

  16)

The Group has provided Shinhan Bank a debt guarantee up to USD 40,000 thousand to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.

 

  17)

The Group has provided Van Phong Power Company Ltd. a performance guarantee up to USD 5,000 thousand for the operation maintenance project in Van Phong, Vietnam.

 

(3)

Credit lines provided by financial institutions as of March 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies                 

Commitments

  

Financial institutions

   Currency    Credit
limit
 

Commitments on Bank-overdraft

   Nonghyup Bank and others    KRW      1,910,500  

Limit amount available for CP

   Hana Bank and others    KRW      4,500,000  

General Loan, etc.

   Hana Bank and others    KRW      3,000,000  

Limit amount available for card

   Hana Bank and others    KRW      47,424  
   Banco de Oro    PHP      5,000  

Loan limit

   Korea Development Bank and others    KRW      2,187,080  
   DBS Bank and others    USD      1,395,000  

Certification of payment on payables from foreign country

   Nonghyup Bank    USD      8,700  

Certification of payment on L/C

   Credit Agricole and others    USD      1,286,072  
   Kookmin Bank and others    EUR      51,330  
   Shinhan Bank    JPY      481,785  

Certification of Performance guarantee on contract

   Hana Bank and others    KRW      126,571  
   First Abu Dhabi Bank and others    USD      1,105,245  
   Korea Development Bank and others    JPY      620,000  
   Hana Bank and others    EUR      3,965  
   Shinhan Bank    INR      44,872  
   Hana Bank    OMR      6,250  
   Hana Bank    SAR      1,509  

Certification of bidding

   Hana Bank    USD      8,450  
   Export-Import Bank of Korea    EUR      11,900  

Advance payment bond, Warranty bond, Retention bond and others

   Export-Import Bank of Korea and others    KRW      63,455  
   Hana Bank and others    USD      303,554  
   Hana Bank and others    MXN      21,597  

Others

   Nonghyup Bank and others    KRW      411,571  
   Export-Import Bank of Korea and others    USD      745,453  
   Standard Chartered    AED      50  
   Shinhan Bank    SAR      3,000  

Secured loan of credit sales

   Nonghyup Bank and others    KRW      296,000  

Inclusive credit

   Hana Bank    KRW      8,000  
   Kookmin Bank and others    USD      135,000  

Equity Bridge Loan Guarantee

   Mizuho Bank and others    USD      1,635,355  

Trade finance

   Export-Import Bank of Korea and others    USD      970,000  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(4)

As of March 31, 2023, promissory notes and assets provided as collaterals or pledges to financial institutions by the Group are follows:

 

In millions of won and thousands of foreign currencies                 

Obligor

  

Creditor

  

Assets provided as security

   Currency    Amount     

Description

Mira Power Limited

  

International Finance Corporation and others

  

Property, plant and equipment and others

   USD      275,600      Collateral for borrowings (*1)

Tamra Offshore Wind Power Co., Ltd.

  

Kyobo Life Insurance Co., Ltd. and others

  

Property, plant and equipment and others

   KRW      171,600      Collateral for borrowings (*2)

Gyeonggi Green Energy Co., Ltd.

  

Korea Development Bank and others

  

Cash and cash equivalents and others

   KRW      327,080      Collateral for borrowings (*2)

Commerce and Industry Energy Co., Ltd.

  

IBK and others

  

Property, plant and equipment and others

   KRW      110,500      Collateral for borrowings (*2)

Jeongam Wind Power Co., Ltd.

  

KDB Capital Corporation and others

  

Cash and cash equivalents and others

   KRW      235,809      Collateral for borrowings (*2)

Gyeongju Wind Power Co., Ltd.

  

Shinhan Bank and others

  

Property, plant and equipment and others

   KRW      68,400      Collateral for borrowings (*2)

Korea Offshore Wind Power Co., Ltd.

  

Woori Bank and others

  

Property, plant and equipment and others

   KRW      293,400      Collateral for borrowings (*2)

Qatrana Electric Power Company

  

The Islamic Development Bank and others

  

Finance lease receivable and property, plant and equipment and others

   JOD      136,623      Collateral for borrowings (*1)

KST Electric Power Company, S.A.P.I. de C.V.

  

Export–Import Bank of Korea and others

  

Finance lease receivable and property, plant and equipment and others

   USD      401,277      Collateral for debt securities (*1)

Incheon Fuel Cell Co., Ltd.

  

Kookmin Bank and others

  

Cash and cash equivalents and others

   KRW      276,960      Collateral for borrowings (*2)

K-SOLAR SHINAN Co., Ltd.

  

Kyobo Life Insurance Co., Ltd. and others

  

Property, plant and equipment and others

   KRW      329,736      Collateral for borrowings (*2)

KOSPO Youngnam Power Co., Ltd.

  

Shinhan Bank and others

  

Cash and cash equivalents and others

   KRW      744,120      Collateral for borrowings (*2)

Jeju Hanlim Offshore Wind Co., Ltd.

  

Kookmin Bank and others

  

Property, plant and equipment and others

   KRW      1,800      Collateral for borrowings (*2)

Western Power Changgi Solar Co., Ltd.

  

Samsung Life Insurance and others

  

Property, plant and equipment and others

   KRW      58,500      Collateral for borrowings (*2)

J Wind First, LLC

  

Woori Bank

  

Trade Receivable and others

   KRW      55,000      Collateral for borrowings (*2)

 

(*1)

This is based on the amount of loan commitment limit.

(*2)

As of March 31, 2023, the Group has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.

The Group has 1,197 million of project loans from the Korea Energy Agency as of March 31, 2023. The Group has provided a promissory note as a repayment guarantee.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(5)

The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of 65,980 million as of March 31, 2023, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of 389 million and depreciation on the idle assets of 914 million are recorded in other expenses for the three-month period ended March 31, 2023. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of March 31, 2023.

 

(6)

Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in the Gaeseong Industrial District as of March 31, 2023. The book value of facility is 12,777 million and trade receivables related to the companies residing in Gaeseong industrial complex had been fully written-off. The outcome of this event cannot be reasonably estimated as of March 31, 2023.

 

(7)

In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of March 31, 2023.

 

(8)

The Korea Institute of Energy Technology(KENTECH) was established in April, 2020, in accordance with the “Basic plan for the establishment of KENTECH (July, 2019)”. By the special law to create KENTECH, the Group, government, and local government may contribute to the fund. The Group will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.

 

(9)

The ongoing armed conflict in Ukraine started in February 2022 and relevant sanctions against Russia imposed by the international community can impact not only sanctioned entities but also the entities doing business directly or indirectly with Ukraine or Russia and the entities exposed directly or indirectly to industries or economy of Russia or Ukraine. The Group cannot make reasonable estimation of the financial impact of the recent conflict in Ukraine on the future events.

 

(10)

The Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses the tax challenges arising from the digitalization of the global economy. Global Minimum Tax (Pillar Two) were released and they apply to Multinational Enterprises (MNEs) with revenue in excess of EUR 750 million per their consolidated financial statements. National Assembly of South Korea passed the new Global Minimum Tax rules to align with the OECD BEPS Pillar Two in December 2022. The regulation will be included in the Adjustment of International Taxes Act and will be effective for fiscal years beginning on or after January 1, 2024. However, the Enforcement Decrees that provide further detail on the application of the legislation is only expected to be finalized later in 2023. In South Korea, Pillar Two legislation is not yet considered substantively enacted as of March 31, 2023 for KIFRS 1012 purposes. The Group therefore has not recognized any tax effect arising from the Global Minimum Tax in its consolidated financial statements as of and for the three-month period ended March 31, 2023.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

50.

Subsequent Events

Subsequent to March 31, 2023, KEPCO and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea Western Power Co., Ltd., and Korea Southern Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows:

 

In millions of won              

Company

   Type    Issue date    Maturity    Interest rate (%)      Amount  

Korea Electric Power Corporation

   #1377 Corporate bond    2023.04.04    2025.04.04      3.99      270,000  
   #1378 Corporate bond    2023.04.04    2026.04.04      4.00        260,000  
   #1379 Corporate bond    2023.04.07    2025.04.07      3.95        210,000  
   #1380 Corporate bond    2023.04.07    2026.04.07      3.95        190,000  
   #1381 Corporate bond    2023.04.12    2025.04.12      3.91        240,000  
   #1382 Corporate bond    2023.04.12    2026.04.12      3.95        170,000  
   #1383 Corporate bond    2023.04.21    2025.04.21      3.89        200,000  
   #1384 Corporate bond    2023.05.08    2025.05.08      3.88        270,000  
   #1385 Corporate bond    2023.05.08    2026.05.08      3.85        130,000  

Korea Hydro & Nuclear Power Co., Ltd.

   #72-1 Corporate bond    2023.04.26    2028.04.26      3.91        130,000  
   #72-2 Corporate bond    2023.04.26    2043.04.26      4.00        90,000  

Korea Western Power Co., Ltd.

   #58-1 Corporate bond    2023.04.20    2026.04.20      3.98        200,000  
   #58-2 Corporate bond    2023.04.20    2028.04.20      4.13        40,000  
   #58-3 Corporate bond    2023.04.20    2043.04.20      3.94        20,000  

Korea Southern Power Co., Ltd.

   #68-1 Corporate bond    2023.04.13    2024.04.12      3.63        150,000  
   #68-2 Corporate bond    2023.04.13    2026.04.13      3.76        50,000  

 

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2023 and 2022 (Unaudited)

 

51.

Adjusted Operating Loss

The operating loss in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Group’s results from operating activities as presented in the Group’s interim consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the three-month periods ended March 31, 2023 and 2022 to the operating profit or loss as presented in the Group’s interim consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.

 

In millions of won    March 31, 2023     March 31, 2022  

Operating loss on the interim consolidated statements of comprehensive income (loss)

   (6,177,559     (7,786,922

Add

    

Other income

    

Reversal of other provisions

     10,586       2,356  

Gains on government grants

     60       75  

Gains on assets contributed

     2,022       151  

Gains on liabilities exempted

     102       158  

Compensation and reparations revenue

     18,947       15,675  

Foundation fund revenue

     1       —    

Revenue from research contracts

     716       1,826  

Rental income

     51,835       50,822  

Others

     5,467       4,225  

Other gains

    

Gains on disposal of property, plant and equipment

     6,567       7,040  

Gains on foreign currency translation

     17,039       11,485  

Gains on foreign currency transaction

     47,934       12,098  

Others

     101,769       56,296  

Deduct

    

Other expense

    

Accretion expenses of other provisions

     (345     (523

Depreciation expenses on investment properties

     (123     (101

Depreciation expenses on idle assets

     (914     (890

Other bad debts expense

     (2,618     (2,407

Donations

     (10,129     (9,513

Others

     (6,941     (35,810

Other losses

    

Losses on disposal of property, plant and equipment

     (11,304     (29,976

Losses on disposal of intangible assets

     (57     (19

Loss on impairment of property, plant and equipment

     (2,021     —    

Loss on impairment of intangible assets

     (283     —    

Losses on foreign currency translation

     (9,740     (2,847

Losses on foreign currency transaction

     (74,404     (25,962

Others

     (62,236     (37,962
  

 

 

   

 

 

 

Adjusted operating loss

   (6,095,629     (7,770,725
  

 

 

   

 

 

 

 

150