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6-K 1 d439313d6k.htm FORM 6-K Form 6-K Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the Month of September 2023

Commission File Number 001-13372

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 ☐

Table of Contents

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2023 to June 30, 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 June 30, 2023)

Listed	Unlisted	Total
2	159	161

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5.	Major changes in management

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.

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.

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.

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.

On August 30, 2023, Mr. Han, Jin-hyun was appointed as a non-standing director in replacement of Mr. Park, Jong-Bae whose term of office expired.

6.	Changes in major shareholders

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

7.	Information regarding KEPCO shares

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

Total number of issued shares: 641,964,077

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

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

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II.	Business Overview

1.	Consolidated financial results by segment for a six-month period ended June 30, 2022 and 2023


	(In billions of Won)

	January to June 2022				January to June 2023
	Sales		Operating profit		Sales		Operating profit
Electricity sales		30,871		-15,005		40,000		-7,226
Nuclear generation		5,030		588		4,087		-1,056
Thermal generation		17,847		-35		18,421		-181
Plant maintenance & engineering service		1,342		81		1,441		166
Others(1)		1,199		141		1,165		58
Subtotal		56,289		-14,230		65,114		-8,239
Adjustment for related- party transactions		-24,297		-74		-23,897		-211

Total		31,992		-14,303		41,217		-8,450

Note:

(1)	Others relate to business areas including overseas businesses, etc..

2.	Changes in unit prices of major products for a six-month period ended June 30, 2022 and 2023


					(In Won per kWh)

Business sector		Company	January to June 2022		January to June 2023
Electricity sold	Residential			114.80		144.63
	Commercial			128.95		162.40
	Educational			101.34		130.98
	Industrial	KEPCO		107.91		146.79
	Agricultural			50.85		73.79
	Street lighting			118.99		149.63
	Overnight usage			69.48		98.52
Electricity from nuclear generation	Nuclear Generation	KHNP		57.81		46.93

Electricity from thermal generation	Thermal generation	KOSEP		157.60		156.09
		KOMIPO		163.55		183.79
		KOWEPO		155.57		185.72
		KOSPO		170.41		194.37
		EWP		167.64		184.28

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3.	Power purchase from generation subsidiaries for a six-month period ended June 30, 2023


Company	Volume (GWh)		Expense (In billions of Won)
KHNP		84,841		3,991
KOSEP		19,079		2,902
KOMIPO		20,773		3,739
KOWEPO		18,078		3,348
KOSPO		19,944		3,874
EWP		16,686		2,972
Others		95,855		20,060

Total		275,256		40,885

4.	Intellectual property as of June 30, 2023


	Patents		Utility models		Designs		Trademarks		Total
KEPCO		3,223		17		124		63		3,427
Generation subsidiaries		3,645		68		89		256		4,058

Total		6,868		85		213		319		7,485

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III.	Financial Information

1.	Condensed consolidated financial results as of and for a six-month period June 30, 2022 and 2023


					(In billions of Won)
Consolidated statements of comprehensive income				Consolidated statements of financial position
	January to June 2022	January to June 2023	Change		December 31, 2022	June 30, 2023	Change
Sales	31,992	41,217	9,225	Total assets	234,805	236,423	1,618
Operating profit (loss)	-14,303	-8,450	5,853	Total liabilities	192,805	201,350	8,545
Net income (loss)	-10,762	-6,816	3,946	Total equity	42,000	35,073	-6,927

2.	Condensed separate financial results as of and for a six-month period June 30, 2022 and 2023


						(In billions of Won)
Separate statements of comprehensive income				Separate statements of financial position
	January to June 2022	January to June 2023	Change		December 31, 2022	June 30, 2023	Change
Sales	30,871	40,000	9,129	Total assets	131,024	131,603	579
Operating profit (loss)	-15,005	-7,226	7,779	Total liabilities	108,963	115,692	6,729
Net income (loss)	-10,811	-6,075	4,736	Total equity	22,061	15,911	-6,150

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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 six-month period ended June 30, 2023

*	The audit committee held 6 meetings with 28 agenda (of which, 15 were approved as proposed and 13 were accepted as reported).

3. Major activities of the Board of Directors for a six-month period ended June 30, 2023


Date	Agenda	Results	Type
January 19, 2023	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director	Approved as proposed	Resolution
January 19, 2023	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

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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

April 21, 2023	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director	Accepted as proposed	Resolution
	Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders	Accepted as proposed	Resolution
	Approval of amendments to the Regulation for Employee Remuneration and Welfare	Deferred	Resolution
	Approval of the 10th long-term plan for power transmission and substation facilities	Accepted as amended	Resolution
May 15, 2023	Approval of amendment to the Terms and Condition for Electricity Supply	Accepted as proposed	Resolution

June 2, 2023	Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO	Accepted as proposed	Resolution
	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023	Accepted as proposed	Resolution
June 23, 2023	Approval of appointment of a member of ESG Committee	Accepted as proposed	Resolution
	Approval of Agreement on Management Performance Assessment for the President & CEO	Accepted as proposed	Resolution
	Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders	Accepted as proposed	Resolution
	Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation	Accepted as proposed	Resolution
	Approval of contribution to the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2023	Accepted as proposed	Resolution
	Approval of the mid-to long-term financial management plan (2023-2027)	Accepted as proposed	Resolution

June 28, 2023	Approval of additional contribution to Korea Institute of Energy Technology in 2023	Accepted as proposed	Resolution

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4. Attendance Status of Non-standing directors for a six-month period ended June 30, 2023

Date

Agenda

Park,
Jong-

Bae

Bang,
Su-

Ran

Park,
Hyo-

Sung

Lee,
Kee-

Man

Lee,

Kye-

Sung

Kim,

Jae-

Shin

Kim,

Jong

-Woon

Kim,

Jun-

Park,

Chung-

Kun

January 19, 2023

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

For

Absent

Before

Appointment

Before

Appointment

Approval of the safety management plan of 2023

For

Absent

February 10, 2023

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023

For

Before

Appointment

Before

Appointment

February 24, 2023

Approval of amendment to the Rules on Employment

For

Approval of the maximum aggregate amount of remuneration for directors in 2023

For

Approval to call for the annual general meeting of shareholders for the fiscal year 2022

For

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

For

Before

Appointment

Before

Appointment

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

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March 24, 2023

Approval of establishment of research-based spin-off companies of KEPCO

For

Before

Appointment

Before

Appointment

Approval of liquidation of the KEPCO-Uhde Inc.

For

April 21, 2023

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

For

Before

Appointment

Before

Appointment

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

Deferred

Approval of the 10th long-term plan for power transmission and substation facilities

For

May 15, 2023

Approval of amendment to the Terms and Condition for Electricity Supply

For

Retired

For

June 2, 2023

Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO

For

Retired

For

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023

For

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June 23, 2023

Approval of appointment of a member of ESG Committee

For

Retired

For

Approval of Agreement on Management Performance Assessment for the President & CEO

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

Approval of contribution to the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2023

For

Approval of the mid-to long-term financial management plan (2023-2027)

For

June 28, 2023

Approval of additional contribution to Korea Institute of Energy Technology in 2023

For

Retired

For

Attendance Rate

100%

88.9%

100%

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5. Attendance Status of Standing directors for a six-month period ended June 30, 2023

Date

Agenda

Cheong,

Seung-

Choi,

Young-

Lee,

Heyn-

Bin

Lee,

Jong-
Hwan

Park,

Heon-

Gyu

Kim,
Tae-

Lee,

Heung

-Joo

Jun,

Young-
Sang

Lee,

Jung-

Bok

Lee,

Jun-

Seo,

Geun-

Bae

January 19, 2023

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

For

Before Appointment

Approval of the safety management plan of 2023

For

February 10, 2023

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023

For

Retired

For

Before Appointment

February 24, 2023

Approval of amendment to the Rules on Employment

For

Absent

Before Appointment

Approval of the maximum aggregate amount of remuneration for directors in 2023

For

Absent

Approval to call for the annual general meeting of shareholders for the fiscal year 2022

For

Absent

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

For

Retired

For

Absent

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

Retired

Absent

For

Before Appointment

Approval of liquidation of the KEPCO-Uhde Inc.

For

Absent

For

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April 21, 2023

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

For

Retired

For

Before Appointment

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

Deferred

Approval of the 10th long-term plan for power transmission and substation facilities

For

May 15, 2023

Approval of amendment to the Terms and Condition for Electricity Supply

For

Retired

For

Before Appointment

June 2, 2023

Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO

Retired

For

Before Appointment

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2023

For

June 23, 2023

Approval of appointment of a member of ESG Committee

Retired

For

Absent

For

Before Appointment

Approval of Agreement on Management Performance Assessment for the President & CEO

For

Absent

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

Absent

For

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

Absent

For

Approval of contribution to the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2023

For

Absent

For

Approval of the mid-to long-term financial management plan (2023-2027)

For

Absent

For

June 28, 2023

Approval of additional contribution to Korea Institute of Energy Technology in 2023

Retired

For

Attendance Rate

100%

87.5%

100%

77.8%

100%

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6. Major activities of the Audit Committee for a six-month period ended June 30, 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 17, 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

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April 21, 2023	Approval of amendments to the Internal Audit Guidelines	Approved as proposed	Resolution
	Prior approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Prior approval for non-audit for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Report on the Form 20-F for the fiscal year 2022 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report
	Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2022 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report
	Report on audit results for the first quarter of 2023	Accepted as reported	Report

June 23, 2023	Prior approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution

	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Approved as proposed	Resolution

	Independent auditor’s report on the audit plans for the fiscal year 2023	Accepted as reported	Report

	Auditor’s review report for the first quarter of 2023	Accepted as reported	Report

	Report on audit results for April and May of 2023	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.

9. Attendance Status of the Audit Committee for a six-month period ended June 30, 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

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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 17, 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
April 21, 2023	Approval of amendments to the Internal Audit Guidelines	Attended	Attended	Retired	Attended
	Prior approval of appointment of independent auditors of subsidiaries
	Prior approval for non-audit for subsidiaries by the independent auditor
	Report on the Form 20-F for the fiscal year 2022 to be filed with the U.S. Securities and Exchange Commission
	Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2022 to be filed with the U.S. Securities and Exchange Commission
	Report on audit results for the first quarter of 2023
June 23, 2023	Prior approval of appointment of independent auditors of subsidiaries	Attended	Attended	Retired	Attended
	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders
	Independent auditor’s report on the audit plans for the fiscal year 2023
	Auditor’s review report for the first quarter of 2023
	Report on audit results for April and May of 2023

Attendance Rate		100%	100%	100%	100%

*	Mr. Jun, Young-Sang was appointed as a Comptroller & Auditor General and member of the Audit Committee on March 7, 2023, in replacement of Mr. Choi, Young-Ho who retired on February 6, 2023.

Table of Contents

V.	Shareholder’s Meetings

1.	Summary of shareholder’s meetings for a six-month period ended June 30, 2023


Type	Agenda	Results
Extraordinary General Meeting held on February 27, 2023	Election of two Standing Directors	Approved as proposed
Extraordinary General Meeting held on February 27, 2023	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
Annual General Meeting held on March 28, 2023	Approval of the maximum aggregate amount of remuneration for directors in 2023	Approved as proposed
Extraordinary General Meeting held on June 26, 2023	Election of a Standing Director	Approved as proposed

VI.	Shareholders

1.	List of shareholders as of June 30, 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		42,079,605		6.55
Public (Non-Koreans)	Common Shares		1,078		78,420,800		12.22
Public (Non-Koreans)	American depositary shares (ADS)		1		10,715,768		1.67
Public (Koreans)			683,560		182,670,846		28.46

Total			684,642		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.

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VII.	Directors and employees as of and for a six-month period ended June 30, 2023 (KEPCO Only)

Directors


							(In thousands of Won)
Type		Number of directors	Total remuneration		Average remuneration per person		Remarks
Standing director		6		405,472		67,579	Excluding members of the Audit Committee
Non-standing director		6		90,000		15,000	Excluding members of the Audit Committee
Member of Audit Committee	Standing director	1		65,317		65,317	—
Member of Audit Committee	Non-standing director	2		30,000		15,000	—

Total		15		590,789		39,386	—

Employees


									(In thousands of Won)

Type	Number of employees						Average continuous service year		Total salaries		Average salaries per person
Type	Regular		Non-regular		Total		Average continuous service year		Total salaries		Average salaries per person
Male		17,949		93		18,042		14.9		802,841,343		44,426
Female		5,346		55		5,401		13.3		200,454,445		37,109

Total		23,295		148		23,443		14.5		1,003,295,787		42,742

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VIII.

Other Information Necessary for the Protection of Investors

1.	Pending legal proceedings as of June 30, 2023


			(In billions of Won)

Type	Number of lawsuits		Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants		678		973
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs		256		576

2.	Sanctions as of June 30, 2023


Prosecution Date	Subject		Sanctions	Relevant laws (charges)	Proceedings
Prosecution Date	Position	Tenure	Sanctions	Relevant laws (charges)	Proceedings
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

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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.

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KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For the six-month periods ended June 30, 2023 and 2022

(With Independent Auditor’s Review Report Thereon)

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TABLE OF CONTENTS


	Page
Report on review of interim consolidated financial statements		3

Interim Consolidated Statements of Financial Position		4

Interim Consolidated Statements of Comprehensive Income (Loss)		6

Interim Consolidated Statements of Changes in Equity		8

Interim Consolidated Statements of Cash Flows		10

Notes to the Interim Consolidated Financial Statements		12

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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 June 30, 2023, and the related interim consolidated statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2023 and 2022, interim consolidated statements of changes in equity and interim consolidated statements of cash flows for the six-month periods then ended, 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

August 14, 2023

This review report is effective as of August 14, 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 Statements of Financial Position

As of June 30, 2023 (Unaudited) and December 31, 2022


In millions of won	Note		June 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents		5,6,7,44		2,850,902		3,234,780
Current financial assets, net		5,6,9,11,12,13,44,46		2,239,321		4,286,975
Trade and other receivables, net		5,8,20,24,44,45,46		9,954,271		10,461,822
Inventories, net		14		9,408,172		9,930,732
Income tax receivables				61,549		46,619
Current non-financial assets		15		1,649,661		1,744,869
Assets held-for-sale		16,41		44,748		44,748

Total current assets				26,208,624		29,750,545

Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,44,46		3,516,372		3,336,835
Non-current trade and other receivables, net		5,8,20,44,45,46		2,258,603		2,153,080
Property, plant and equipment, net		18,24,27,48		179,531,506		177,865,308
Investment properties, net		19,27		176,301		208,286
Goodwill		16		125,525		100,093
Intangible assets other than goodwill, net		21,27,45		1,011,487		956,664
Investments in associates		4,17		6,271,953		5,844,464
Investments in joint ventures		4,17		3,486,439		3,147,584
Defined benefit assets, net		25		118,342		198,626
Deferred tax assets				13,461,557		10,934,375
Non-current non-financial assets		15		256,184		309,134

Total non-current assets				210,214,269		205,054,449

Total Assets		4		236,422,893		234,804,994

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Financial Position, Continued

As of June 30, 2023 (Unaudited) and December 31, 2022


In millions of won	Note		June 30, 2023		December 31, 2022
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,44,46		9,542,446		11,983,549
Current financial liabilities, net		5,12,23,44,46		28,224,296		22,703,996
Income tax payables				188,683		429,604
Current non-financial liabilities		20,28,29		7,708,110		6,974,377
Current provisions		26,44		2,503,846		2,427,051

Total current liabilities				48,167,381		44,518,577

Non-current liabilities
Non-current trade and other payables, net		5,22,24,44,46		5,582,164		5,638,914
Non-current financial liabilities, net		5,12,23,44,46		103,511,445		98,334,120
Non-current non-financial liabilities		28,29		10,828,269		10,662,661
Employee benefits liabilities, net		25,44		942,674		828,721
Deferred tax liabilities				5,805,202		6,457,103
Non-current provisions		26,44		26,512,870		26,364,642

Total non-current liabilities				153,182,624		148,286,161

Total Liabilities		4		201,350,005		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				2,812,312		27,782,969
Unappropriated retained earnings (undisposed deficit)				10,040,143		(7,956,579	)

				14,457,365		21,431,300

Other components of equity		33
Other capital surplus				1,284,416		1,268,569
Accumulated other comprehensive income				632,873		496,976
Other equity				13,294,972		13,294,973

				15,212,261		15,060,518

Equity attributable to owners of the controlling company				33,723,204		40,545,396

Non-controlling interests		16,32		1,349,684		1,454,860

Total Equity				35,072,888		42,000,256

Total Liabilities and Equity				236,422,893		234,804,994

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss)

For the three and six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won, except per share information			June 30, 2023						June 30, 2022
	Note		Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Sales		4,34,44,46
Sales of goods		2		19,088,424			40,231,929			14,889,749			30,927,545
Sales of services				156,110			305,272			172,501			283,574
Sales of construction services		20		194,253			313,773			288,665			429,459
Revenue related to transfer of assets from customers		28		183,708			365,543			177,120			351,527

				19,622,495			41,216,517			15,528,035			31,992,105

Cost of sales		14,25,42,46
Cost of sales of goods				(20,808,106	)		(47,596,281	)		(20,856,601	)		(44,186,239	)
Cost of sales of services				(115,191	)		(242,230	)		(153,266	)		(294,088	)
Cost of sales of construction services				(245,766	)		(410,546	)		(265,121	)		(397,499	)

				(21,169,063	)		(48,249,057	)		(21,274,988	)		(44,877,826	)

Gross loss				(1,546,568	)		(7,032,540	)		(5,746,953	)		(12,885,721	)

Selling and administrative expenses		25,35,42,46		(725,830	)		(1,417,417	)		(769,395	)		(1,417,549	)

Operating loss		4		(2,272,398	)		(8,449,957	)		(6,516,348	)		(14,303,270	)

Other income		36		134,984			224,720			98,906			174,194

Other expenses		36		(108,389	)		(129,459	)		(41,562	)		(90,805	)

Other gains (losses), net		37		(10,326	)		2,938			59,978			50,131

Finance income		5,12,38		320,873			982,958			977,101			1,258,707

Finance expenses		5,12,39		(1,263,898	)		(2,926,585	)		(1,664,484	)		(2,588,018	)

Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Gain on valuation of investments in associates and joint ventures				237,155			510,612			321,036			712,717
Gain on disposal of investments in associates and joint ventures				7,505			16,978			394			4,931
Loss on valuation of investments in associates and joint ventures				—			(41,546	)		(15,402	)		(103,966	)
Loss on disposal of investments in associates and joint ventures				—			—			(67	)		(382	)
Loss on impairment of investments in associates and joint ventures				(7	)		(7	)		—			—
Loss on disposal of investments in subsidiaries				(564	)		(564	)		(31,532	)		(31,533	)

				244,089			485,473			274,429			581,767

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss), Continued

For the three and six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won, except per share information			June 30, 2023						June 30, 2022
	Note		Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Loss before income tax				(2,955,065	)		(9,809,912	)		(6,811,980	)		(14,917,294	)

Income tax benefit		40		1,050,714			2,994,328			1,976,160			4,155,550

Loss for the period				(1,904,351	)		(6,815,584	)		(4,835,820	)		(10,761,744	)

Other comprehensive income (loss), net of tax		5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability		25,31		34,125			(136,523	)		200,266			348,594
Share of other comprehensive income (loss) of associates and joint ventures		31		(4,818	)		(794	)		881			2,368
Net change in fair value of financial assets at fair value through other comprehensive income (loss)		33		(11,437	)		(68,311	)		(41,797	)		(20,443	)
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		(15,561	)		(11,947	)		27,298			(7,446	)
Foreign currency translation of foreign operations		33		6,475			29,960			16,242			93,477
Share of other comprehensive income of associates and joint ventures		33		91,136			201,726			298,140			463,454

Other comprehensive income for the period				99,920			14,111			501,030			880,004

Total comprehensive loss for the period				(1,804,431	)		(6,801,473	)		(4,334,790	)		(9,881,740	)

Profit (loss) attributable to:
Owners of the controlling company		43		(1,902,784	)		(6,849,287	)		(4,837,193	)		(10,790,049	)
Non-controlling interests				(1,567	)		33,703			1,373			28,305

				(1,904,351	)		(6,815,584	)		(4,835,820	)		(10,761,744	)

Total comprehensive income (loss) attributable to:
Owners of the controlling company				(1,812,007	)		(6,838,038	)		(4,364,493	)		(9,954,640	)
Non-controlling interests				7,576			36,565			29,703			72,900

				(1,804,431	)		(6,801,473	)		(4,334,790	)		(9,881,740	)

Loss per share (in won)		43
Basic and diluted loss per share				(2,964	)		(10,669	)		(7,535	)		(16,808	)

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity

For the six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company											Non- controlling interests			Total equity
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			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		—		(10,790,049	)		—			(10,790,049	)		28,305			(10,761,744	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		330,850			—			330,850			17,744			348,594
Share of other comprehensive income of associates and joint ventures, net of tax		—		2,368			—			2,368			—			2,368
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax		—		—			(20,442	)		(20,442	)		(1	)		(20,443	)
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		—		—			(10,757	)		(10,757	)		3,311			(7,446	)
Foreign currency translation of foreign operations, net of tax		—		—			69,936			69,936			23,541			93,477
Share of other comprehensive income of associates and joint ventures, net of tax		—		—			463,454			463,454			—			463,454
Transactions with owners of the Group, recognized directly in equity
Dividends paid		—		—			—			—			(33,276	)		(33,276	)
Additional paid-in capital and others		—		154			1,048			1,202			26,294			27,496
Transactions between consolidated entities		—		—			(515	)		(515	)		(2,454	)		(2,969	)
Changes in consolidation scope		—		—			(551	)		(551	)		3,737			3,186
Dividends paid for hybrid bonds		—		—			—			—			(6,692	)		(6,692	)

Balance as of June 30, 2022		4,053,578		34,801,567			14,970,623			53,825,768			1,606,943			55,432,711

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity, Continued

For the six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company											Non- controlling interests			Total equity
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			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		—		(6,849,287	)		—			(6,849,287	)		33,703			(6,815,584	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(123,854	)		—			(123,854	)		(12,669	)		(136,523	)
Share of other comprehensive income of associates and joint ventures, net of tax		—		(794	)		—			(794	)		—			(794	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax		—		—			(68,309	)		(68,309	)		(2	)		(68,311	)
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		—		—			(13,107	)		(13,107	)		1,160			(11,947	)
Foreign currency translation of foreign operations, net of tax		—		—			15,587			15,587			14,373			29,960
Share of other comprehensive income of associates and joint ventures, net of tax		—		—			201,726			201,726			—			201,726
Transactions with owners of the Group, recognized directly in equity
Dividends paid		—		—			—			—			(39,854	)		(39,854	)
Additional paid-in capital and others		—		—			11			11			7,888			7,899
Transactions between consolidated entities		—		—			15,882			15,882			(106,232	)		(90,350	)
Changes in consolidation scope		—		—			(47	)		(47	)		384			337
Dividends paid for hybrid bonds		—		—			—			—			(3,927	)		(3,927	)

Balance as of June 30, 2023		4,053,578		14,457,365			15,212,261			33,723,204			1,349,684			35,072,888

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows

For the six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won	June 30, 2023			June 30, 2022
Cash flows from operating activities
Loss for the period		(6,815,584	)		(10,761,744	)

Adjustments to reconcile loss for the period to net cash provided by operating activities:
Income tax benefit		(2,994,328	)		(4,155,550	)
Depreciation		6,414,990			6,167,846
Amortization		84,336			77,632
Employee benefit expense		174,727			235,034
Bad debt expense		35,769			3,705
Interest expense		2,157,213			1,203,655
Loss on disposal of financial assets		—			907
Loss on disposal of property, plant and equipment		34,157			51,770
Loss on abandonment of property, plant and equipment		91,340			101,753
Loss on impairment of property, plant and equipment		6,167			—
Loss on impairment of intangible assets		283			14
Loss on disposal of intangible assets		70			39
Increase in provisions		952,616			838,592
Loss on foreign currency translation, net		573,510			1,108,939
Gain on valuation of financial assets at fair value through profit or loss		(16,822	)		(2,334	)
Loss on valuation of financial assets at fair value through profit or loss		2,004			13,838
Valuation and transaction gain on derivative instruments, net		(565,313	)		(912,179	)
Gain on valuation of investments in associates and joint ventures, net		(469,066	)		(608,751	)
Gain on disposal of financial assets		(6,569	)		(1,107	)
Gain on disposal of property, plant and equipment		(13,694	)		(77,975	)
Gain on disposal of intangible assets		—			(132	)
Gain on disposal of investments in associates and joint ventures		(16,978	)		(4,931	)
Loss on disposal of investments in associates and joint ventures		—			382
Impairment loss of investments in associates and joint ventures		7			—
Loss on disposal of investments in subsidiaries		564			31,533
Interest income		(203,907	)		(138,271	)
Dividends income		(11,412	)		(15,278	)
Others, net		(12,752	)		(5,326	)

		6,216,912			3,913,805

Changes in working capital:
Trade receivables		286,826			477,547
Non-trade receivables		220,621			(124,887	)
Accrued income		(87,542	)		(154,515	)
Other receivables		46,732			33,600
Other current assets		45,432			(733,491	)
Inventories		155,555			(2,218,674	)
Other non-current assets		42,073			20,133
Trade payables		(2,606,699	)		607,098
Non-trade payables		(115,796	)		47,001
Accrued expenses		217,340			215,154
Other current liabilities		681,666			372,139
Other non-current liabilities		68,523			289,523
Investments in associates and joint ventures (dividends received)		328,806			363,226
Provisions		(893,018	)		(788,975	)
Payments of employee benefit obligations		(210,170	)		(97,038	)
Plan assets		(1,477	)		(70	)

		(1,821,128	)		(1,692,229	)

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows, Continued

For the six-month periods ended June 30, 2023 and 2022 (Unaudited)


In millions of won	June 30, 2023			June 30, 2022
Cash generated from operating activities		(2,419,800	)		(8,540,168	)
Dividends received		28,875			15,278
Interest paid		(2,131,394	)		(1,051,434	)
Interest received		143,606			88,640
Income taxes paid		(432,591	)		(261,074	)

Net cash flows used in operating activities		(4,811,304	)		(9,748,758	)

Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures		1,438			34,385
Acquisition of investments in associates and joint ventures		(318,469	)		(282,560	)
Proceeds from disposals of property, plant and equipment		176,707			234,159
Acquisition of property, plant and equipment		(7,251,663	)		(5,922,168	)
Proceeds from disposals of intangible assets		20			61
Acquisition of intangible assets		(58,503	)		(38,701	)
Proceeds from disposals of financial assets		3,525,654			2,937,811
Acquisition of financial assets		(1,422,910	)		(3,886,202	)
Increase in loans		(43,105	)		(297,298	)
Collection of loans		49,660			45,736
Increase in deposits		(95,549	)		(125,485	)
Decrease in deposits		65,487			72,677
Disposal of held-for-sale assets		14,363			9,576
Receipt of government grants		22,907			29,128
Net cash outflow from changes in consolidation scope		(29,501	)		(1,004	)
Other cash outflow from investing activities, net		(114,725	)		(95,441	)

Net cash flows used in investing activities		(5,478,189	)		(7,285,326	)

Cash flows from financing activities
Proceeds from (Repayment of) short-term borrowings, net		(719,160	)		1,897,911
Proceeds from long-term borrowings and debt securities		16,238,727			20,882,363
Repayment of long-term borrowings and debt securities		(5,283,161	)		(5,119,736	)
Payment of lease liabilities		(314,740	)		(312,338	)
Settlement of derivative instruments, net		98,692			149,360
Change in non-controlling interests		(89,225	)		13,859
Dividends paid for hybrid bonds		(5,106	)		(6,692	)
Dividends paid		(39,854	)		(33,276	)
Other cash outflow from financing activities, net		(360	)		(1,695	)

Net cash flows provided by financing activities		9,885,813			17,469,756

Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations		(403,680	)		435,672

Effect of exchange rate fluctuations on cash held		19,802			19,842

Net increase (decrease) in cash and cash equivalents		(383,878	)		455,514

Cash and cash equivalents as of January 1, 2023		3,234,780			2,635,238

Cash and cash equivalents as of June 30, 2023		2,850,902			3,090,752

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements

June 30, 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 June 30, 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 89,214,065 shares(13.90%) as of May 8, 2023, 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

June 30, 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).

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and 2022 are 1,861,470 million and 1,341,718 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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(2)	Financial information of the segments for the three and six-month periods ended June 30, 2023 and 2022, respectively, are as follows:

In millions of won


June 30, 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
	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended
Transmission and distribution		19,089,564			39,999,973			438,589			909,026			18,650,975		39,090,947		(878,875	)		(7,226,073	)		1,063,035			2,119,094			20,699			46,543			700,511			1,341,641			137,551		269,263
Electric power generation (Nuclear)		1,764,005			4,087,480			1,733,267			4,031,027			30,738		56,453		(811,516	)		(1,055,576	)		1,094,125			2,205,110			14,322			27,299			172,001			343,940			13,724		8,341
Electric power generation (Non-nuclear)		7,347,746			18,420,658			6,659,610			16,852,216			688,136		1,568,442		(638,597	)		(180,860	)		1,044,627			2,072,033			12,296			26,217			184,490			365,511			92,607		209,129
Plant maintenance & engineering service		741,731			1,441,193			640,737			1,229,339			100,994		211,854		72,687			165,960			31,425			62,159			6,409			11,286			305			664			207		(1,260	)
Others		538,087			1,164,203			386,435			875,382			151,652		288,821		33,839			57,266			49,178			110,332			57,671			114,609			63,847			132,736			—		—
Consolidation adjustments		(9,858,638	)		(23,896,990	)		(9,858,638	)		(23,896,990	)		—		—		(49,936	)		(210,674	)		(32,448	)		(69,402	)		(10,436	)		(22,047	)		(12,019	)		(27,279	)		—		—

		19,622,495			41,216,517			—			—			19,622,495		41,216,517		(2,272,398	)		(8,449,957	)		3,249,942			6,499,326			100,961			203,907			1,109,135			2,157,213			244,089		485,473

In millions of won


June 30, 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
	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended
Transmission and distribution		14,855,937			30,871,487			337,992			819,805			14,517,945		30,051,682		(5,842,698	)		(15,005,063	)		1,036,194			2,056,922			13,584			24,035			296,229			519,936			194,045		399,470
Electric power generation (Nuclear)		2,038,756			5,030,222			1,987,595			4,960,295			51,161		69,927		(62,767	)		587,590			1,004,214			2,017,266			9,269			14,459			139,484			278,013			6,238		7,996
Electric power generation (Non-nuclear)		7,905,919			17,847,198			7,313,539			16,640,021			592,380		1,207,177		(753,167	)		(34,641	)		1,032,439			2,074,336			13,538			21,618			170,921			329,409			73,236		173,631
Plant maintenance & engineering service		719,002			1,342,240			604,369			1,137,209			114,633		205,031		49,155			81,406			30,924			61,431			3,325			6,159			341			684			910		670
Others		591,877			1,198,338			339,961			740,050			251,916		458,288		60,453			141,098			51,832			91,383			45,220			86,963			44,100			94,196			—		—
Consolidation adjustments		(10,583,456	)		(24,297,380	)		(10,583,456	)		(24,297,380	)		—		—		32,676			(73,660	)		(33,140	)		(55,860	)		(7,934	)		(14,963	)		(11,331	)		(18,583	)		—		—

		15,528,035			31,992,105			—			—			15,528,035		31,992,105		(6,516,348	)		(14,303,270	)		3,122,463			6,245,478			77,002			138,271			639,744			1,203,655			274,429		581,767

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won
June 30, 2023
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution		131,602,771			5,952,753		3,791,689			115,691,990
Electric power generation (Nuclear)		69,793,001			153,723		1,721,279			44,566,129
Electric power generation (Non-nuclear)		64,407,140			3,597,033		1,642,565			37,504,613
Plant maintenance & engineering service		4,188,294			54,883		88,697			1,411,703
Others		13,177,129			—		298,333			5,882,535
Consolidation adjustments		(46,745,442	)		—		(100,236	)		(3,706,965	)

		236,422,893			9,758,392		7,442,327			201,350,005


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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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)
	June 30, 2023				June 30, 2022				June 30, 2023		December 31, 2022
Geographical unit	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		June 30, 2023		December 31, 2022
Domestic		19,321,515		40,698,437		15,032,054		31,216,049		185,929,690		183,707,117
Overseas (*1)		300,980		518,080		495,981		776,056		4,929,705		4,724,416

		19,622,495		41,216,517		15,528,035		31,992,105		190,859,395		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 six-month periods ended June 30, 2023 and 2022.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

5.	Classification of Financial Instruments

(1)	Classification of financial assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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		—		—		2,850,902		—		2,850,902
Current financial assets
Current financial assets at fair value through profit or loss		1,138,961		—		—		—		1,138,961
Current financial assets at amortized costs		—		—		18,452		—		18,452
Current derivative assets		219,718		—		—		172,362		392,080
Other financial assets		—		—		689,828		—		689,828
Trade and other receivables		—		—		9,954,271		—		9,954,271

		1,358,679		—		13,513,453		172,362		15,044,494

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		519,947		—		—		—		519,947
Non-current financial assets at fair value through other comprehensive income		—		459,375		—		—		459,375
Non-current financial assets at amortized costs		—		—		10,271		—		10,271
Non-current derivative assets		673,157		—		—		225,289		898,446
Other financial assets		—		—		1,628,333		—		1,628,333
Trade and other receivables		—		—		2,258,603		—		2,258,603

		1,193,104		459,375		3,897,207		225,289		5,774,975

		2,551,783		459,375		17,410,660		397,651		20,819,469

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

5.	Classification of Financial Instruments, Continued

(1)	Classification of financial assets as of June 30, 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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

5.	Classification of Financial Instruments, Continued

(2)	Classification of financial liabilities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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		—		13,797,149		—		13,797,149
Debt securities		—		14,400,805		—		14,400,805
Derivative liabilities		26,342		—		—		26,342
Trade and other payables		—		9,542,446		—		9,542,446

		26,342		37,740,400		—		37,766,742

Non-current liabilities
Borrowings		—		3,027,676		—		3,027,676
Debt securities		—		100,207,859		—		100,207,859
Derivative liabilities		268,799		—		7,112		275,911
Trade and other payables		—		5,582,164		—		5,582,164

		268,799		108,817,699		7,112		109,093,610

		295,141		146,558,099		7,112		146,860,352


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

5.	Classification of Financial Instruments, Continued

(3)	Classification of comprehensive income (loss) from financial instruments for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won		June 30, 2023						June 30, 2022
		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Cash and cash equivalents	Interest income		18,023			41,073			7,689			14,433
Cash and cash equivalents	Gain on foreign currency transactions and translations		1,665			11,350			34,906			45,827
Financial assets at fair value through profit or loss	Interest income		15,517			30,770			15,386			19,623
	Dividends income		877			1,027			805			1,058
	Gain (Loss) on valuation of financial assets		(1,903	)		14,818			(1,978	)		(11,504	)
	Gain (Loss) on disposal of financial assets		4,293			6,569			(506	)		200
Financial assets at fair value through other comprehensive income	Dividends income		10,346			10,385			6,018			14,220
Financial assets at amortized cost	Interest income		835			1,100			390			645
Financial assets at amortized cost	Gain (Loss) on foreign currency transactions and translations		(454	)		(1,291	)		3,524			3,225
Loans	Interest income		11,923			23,870			5,725			11,011
Loans	Gain on foreign currency transactions and translations		52			261			479			673
Trade and other receivables	Interest income		44,708			83,559			40,482			80,000
Trade and other receivables	Gain (Loss) on foreign currency transactions and translations		(913	)		21,185			61,988			59,290
Short-term financial instruments	Interest income		6,632			14,068			3,850			5,851
Short-term financial instruments	Gain on foreign currency transactions and translations		—			—			—			3,513
Long-term financial instruments	Interest income		3,241			9,135			3,475			6,594
Long-term financial instruments	Gain on foreign currency transactions and translations		—			1			1			2
Other financial assets	Interest income		82			332			5			114
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities		913,174			1,760,002			470,334			870,260
	Loss on repayment of financial liabilities		—			—			—			(15	)
	Interest expense of trade and other payables		64,791			92,284			51,547			98,375
	Interest expense of others		131,170			304,927			117,863			235,020
	Other finance income		702			1,384			118			319
	Other finance expenses		30			532			681			1,314
	Loss on foreign currency transactions and translations		(132,589	)		(653,392	)		(1,035,046	)		(1,334,588	)
Derivative assets (trading)	Gain on valuation of derivatives		101,699			317,199			418,475			447,841
Derivative assets (trading)	Gain on transaction of derivatives		18,281			43,673			21,134			36,624
Derivatives (applying hedge accounting)	Gain on valuation of derivatives (profit or loss)		24,482			176,834			269,683			359,894
	Gain (Loss) on valuation of derivatives (equity, before tax)		(30,616	)		(23,865	)		45,467			(26,626	)
	Gain on transaction of derivatives		25,211			27,607			58,495			67,820

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

6.	Restricted Deposits

Restricted deposits as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won		June 30, 2023		December 31, 2022

Cash and cash equivalents	Escrow accounts		3,154		2,912
	Deposits for government project and others		27,957		30,586
	Collateral provided for borrowings		183,197		250,346
	Collateral provided for lawsuit		1,351		57
	Deposits for transmission regional support program		13,256		8,626
	Deposits for other business purposes		3,084		3,825
Short-term financial instruments	Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others		92,500		101,500
	Collateral provided for borrowings		23,410		1,000
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants		371,292		386,220
Long-term financial instruments	Escrow accounts		—		1,603
	Guarantee deposits for banking accounts at oversea branches		19		18
	Collateral provided for borrowings		28,245		21,745
	Decommissioning costs of nuclear power plants		545,000		497,609
Other non-current assets	Deposits for other business purposes		4,355		4,355

			1,296,820		1,310,402

7.	Cash and Cash Equivalents

Cash and cash equivalents as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Cash		6,733		21,113
Other demand deposits		2,134,477		1,906,248
Short-term deposits classified as cash equivalents		549,155		1,063,290
Short-term investments classified as cash equivalents		160,537		244,129

		2,850,902		3,234,780

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

8.	Trade and Other Receivables

(1)	Trade and other receivables as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables		9,405,507		(207,993	)		—			9,197,514
Other receivables		816,585		(55,737	)		(4,091	)		756,757

		10,222,092		(263,730	)		(4,091	)		9,954,271

Non-current assets
Trade receivables		214,587		(2,086	)		—			212,501
Other receivables		2,129,951		(70,149	)		(13,700	)		2,046,102

		2,344,538		(72,235	)		(13,700	)		2,258,603

		12,566,630		(335,965	)		(17,791	)		12,212,874


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

8.	Trade and Other Receivables, Continued

(2)	Other receivables as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables		209,504		(52,645	)		(85	)		156,774
Accrued income		103,922		—			—			103,922
Deposits		336,229		—			(4,006	)		332,223
Finance lease receivables (*1)		70,986		(1,800	)		—			69,186
Others		95,944		(1,292	)		—			94,652

		816,585		(55,737	)		(4,091	)		756,757

Non-current assets
Non-trade receivables		217,171		(56,467	)		(214	)		160,490
Accrued income		2,757		—			—			2,757
Deposits		456,496		—			(13,486	)		443,010
Finance lease receivables (*2)		1,188,926		(2,577	)		—			1,186,349
Others		264,601		(11,105	)		—			253,496

		2,129,951		(70,149	)		(13,700	)		2,046,102

		2,946,536		(125,886	)		(17,791	)		2,802,859

(*1)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 116,899 million.

(*2)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of 1,011,710 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

8.	Trade and Other Receivables, Continued

(4)	Aging analysis of trade receivables as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Trade receivables: (not overdue)		9,226,701			9,509,775

Trade receivables: (impairment reviewed)		393,393			389,060

Less than 60 days		7,143			5,592
60 ~ 90 days		38,068			36,389
90 ~ 120 days		51,682			31,442
120 days ~ 1 year		101,810			99,655
Over 1 year		194,690			215,982

		9,620,094			9,898,835
Less: allowance for doubtful accounts		(210,079	)		(199,000	)

		9,410,015			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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 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		28,245			4,117			27,078			4,220
Write-off		(16,247	)		(409	)		(26,319	)		(1,103	)
Reversal		(1,060	)		—			(3,444	)		(37	)
Others		141			12,725			(3,654	)		23,663

Ending balance		210,079			125,886			199,000			109,453

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		91,408		124,647		294		121,406
Cooperative		—		6,047		—		6,329
Others (*)		1,047,553		210,228		3,181,497		173,386

		1,138,961		340,922		3,181,791		301,121

Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives		—		179,025		—		226,596

		1,138,961		519,947		3,181,791		527,717

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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance
Equity securities
Listed		300,057		430		—			(49,200	)		—			251,287
Unlisted		202,243		1,060		(31	)		(162	)		369			203,479

		502,300		1,490		(31	)		(49,362	)		369			454,766

Debt securities
Corporate bond		529		4,080		—			—			—			4,609

		502,829		5,570		(31	)		(49,362	)		369			459,375

Current financial assets at fair value through other comprehensive income		—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income		502,829		5,570		(31	)		(49,362	)		369			459,375

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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%		173,201		59,545		59,545
KG Mobility Co., Ltd. (formerly, Ssangyong Motor Co., Ltd.)		12,205		0.01	%		428		91		91
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		47		47
PAN Ocean Co., Ltd.		1,492		0.00	%		14		8		8
STX Heavy Industries Co., Ltd.		68,874		0.24	%		537		503		503
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk.		480,000,000		1.50	%		65,028		93,767		93,767
Denison Mines Corp.		58,284,000		6.97	%		84,134		95,854		95,854
Fission Uranium Corp.		100,000		0.01	%		41		60		60
SangSangin Industry Co., Ltd.		1,457		0.01	%		38		4		4
Vitzrosys Co., Ltd.		399		0.00	%		2		—		—
EMnI Co., Ltd.		628		0.00	%		25		2		2
Vissem electronics, Co., Ltd.		301		0.00	%		11		2		2
KC Industry Co., Ltd.		139		0.00	%		6		—		—
Ihsung CNI Co., Ltd.		142,860		4.81	%		1,500		1,399		1,399
Aone Alform Co., Ltd.		2,672		0.04	%		19		4		4
BDI Co., Ltd. (*3)		6,390,478		32.53	%		—		—		—

							325,220		251,287		251,287

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		7,855		7,855
Le Soleil KHNP LLC		137,600		19.00	%		1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%		1,500		2,017		2,017
H Robotics Co., Ltd.		903,601		8.05	%		4,000		5,639		5,639
Good Tcells Co., Ltd.		11,364		0.34	%		500		348		348
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.		—		—			38		38		38
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		8.98	%		5,000		5,000		5,000
Aloha Factory Co., Ltd.		2,970		3.61	%		1,000		1,000		1,000
Dailyshot Co., Ltd.		1,695		1.85	%		1,001		1,001		1,001
Mediquitous Co., Ltd.		5,080		0.69	%		1,250		1,250		1,250
Black Materials Co., Ltd.		37,038		8.31	%		500		500		500
Jeongeup Green Power Co., Ltd.		56,000		8.84	%		560		560		560
Hwan Young Steel Co., Ltd. and others (*4)		—		—			10,499		6,603		6,603

							270,294		203,479		203,479

Debt securities (*1)
Aron Flying Ship Co., Ltd		—		—			491		529		529
Ino Platech Co., Ltd.		—		—			1,080		1,080		1,080
Daebon Tech Co., Ltd.		—		—			3,000		3,000		3,000

							4,571		4,609		4,609

							600,085		459,375		459,375

(*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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows, continued:

(*2)	The Group has estimated the fair value of Set Holding by using the income approach 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 six-month period ended June 30, 2023.

(*3)

During the six-month period ended June 30, 2023, shares were acquired through investment-equity conversion following the corporate rehabilitation procedure of BDI Co., Ltd. As the Group does not have significant influence until the corporate rehabilitation procedure is terminated, the Group classified the investment as financial assets at fair value through other comprehensive income.

(*4)	Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 401 companies including Hwan Young Steel Co., Ltd.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 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

(*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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows, continued:

(*2)	The Group has estimated the fair value of Set Holding by using the approach 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

11.	Financial Assets at Amortized Cost

Financial assets at amortized cost as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Financial assets at amortized cost		Book value
Government bonds		1,528		1,528
Others		27,195		27,195

		28,723		28,723

Current		18,452		18,452
Non-current		10,271		10,271

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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives

(1)	Derivatives as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Derivative assets
Currency forward		11,905		23,018		648		17,432
Currency swap		359,726		694,013		236,470		589,300
Interest rate swap		20,449		140,420		52,485		81,188
Others (*3)		—		40,995		—		40,501

		392,080		898,446		289,603		728,421

Derivative liabilities
Currency forward		910		—		32,660		—
Currency swap		11,728		222,005		6,319		328,995
Interest rate swap		752		10,609		—		2,735
Others (*1,2,3)		12,952		43,297		6,015		56,027

		26,342		275,911		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’.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(2)	Currency forward contracts which are not designated as hedging instruments as of June 30, 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)
Counterparty	Contract date	Maturity date	Pay		Receive		Contract exchange rate (in won)
Korea Development Bank	2023.05.30	2023.07.04		13,192	USD	10,000		1,319.20
Morgan Stanley	2023.05.31	2023.07.05		14,475	USD	11,000		1,315.90
Standard Chartered	2023.06.01	2023.07.06		13,179	USD	10,000		1,317.90
Mizuho Bank	2023.06.01	2023.07.07		13,177	USD	10,000		1,317.70
Shinhan Bank	2023.06.02	2023.07.10		13,102	USD	10,000		1,310.20
IBK	2023.06.02	2023.07.11		11,812	USD	9,000		1,310.30
JP Morgan	2023.06.05	2023.07.12		13,062	USD	10,000		1,306.20
Busan Bank	2023.06.05	2023.07.13		11,750	USD	9,000		1,305.50
Shinhan Bank	2023.06.07	2023.07.12		9,081	USD	7,000		1,297.40
Kookmin Bank	2023.06.09	2023.07.13		14,256	USD	11,000		1,296.00
Shinhan Bank	2023.06.09	2023.07.14		9,059	USD	7,000		1,294.10
Standard Chartered	2023.06.09	2023.07.17		12,283	USD	9,500		1,292.90
Mizuho Bank	2023.06.09	2023.07.18		12,938	USD	10,000		1,293.80
Morgan Stanley	2023.06.09	2023.07.19		9,059	USD	7,000		1,294.10
Nonghyup Bank	2023.06.16	2023.07.20		12,685	USD	10,000		1,268.50
Woori Bank	2023.06.16	2023.07.21		10,157	USD	8,000		1,269.60
JP Morgan	2023.06.16	2023.07.21		11,421	USD	9,000		1,269.00
Busan Bank	2023.06.20	2023.07.24		12,752	USD	10,000		1,275.20
Mizuho Bank	2023.06.20	2023.07.25		26,854	USD	21,000		1,278.80
Busan Bank	2023.05.11	2023.07.05		9,217	USD	7,000		1,316.65
Hana Bank	2023.05.17	2023.07.24		14,678	USD	11,000		1,334.34
Hana Bank	2023.05.17	2023.08.07		13,332	USD	10,000		1,333.18
MUFG	2023.05.18	2023.08.07		10,616	USD	8,000		1,327.05
JP Morgan	2023.05.25	2023.08.28		22,389	USD	17,000		1,317.00
JP Morgan	2023.05.25	2023.09.13		13,156	USD	10,000		1,315.60
MUFG	2023.05.30	2023.10.05		13,125	USD	10,000		1,312.50
SMBC	2023.05.30	2023.10.13		13,119	USD	10,000		1,311.85
JP Morgan	2023.06.12	2023.10.23		7,687	USD	6,000		1,281.10
Korea Development Bank	2023.06.12	2023.10.26		7,687	USD	6,000		1,281.10
Busan Bank	2023.06.12	2023.11.07		4,479	USD	3,500		1,279.75
Mizuho Bank	2023.06.12	2023.11.07		4,480	USD	3,500		1,279.90
SMBC	2023.06.16	2023.11.14		12,621	USD	10,000		1,262.10
Mizuho Bank	2023.06.16	2023.11.23		12,617	USD	10,000		1,261.70
Busan Bank	2023.06.16	2023.11.28		11,350	USD	9,000		1,261.15
MUFG	2023.06.19	2023.11.07		6,344	USD	5,000		1,268.85
Kookmin Bank	2023.06.19	2023.11.23		8,879	USD	7,000		1,268.45
MUFG	2023.06.29	2023.07.05		13,128	USD	10,000		1,312.84
Kookmin Bank	2023.06.29	2023.08.23		11,786	USD	9,000		1,309.59
Korea Development Bank	2023.06.29	2023.09.25		13,074	USD	10,000		1,307.35
Busan Bank	2023.06.29	2023.09.27		13,071	USD	10,000		1,307.05
Standard Chartered	2023.06.09	2023.07.12		6,467	USD	5,000		1,293.40
Standard Chartered	2023.06.19	2023.07.20		12,768	USD	10,000		1,276.80
Standard Chartered	2023.06.26	2023.07.06		13,044	USD	10,000		1,304.40
Mizuho Bank	2023.06.13	2023.07.13		6,354	USD	5,000		1,270.70
Mizuho Bank	2023.06.19	2023.07.18		12,764	USD	10,000		1,276.40
Mizuho Bank	2023.06.26	2023.07.11		13,021	USD	10,000		1,302.12
Mizuho Bank	2023.06.29	2023.07.05		13,170	USD	10,000		1,317.04
Woori Bank	2023.06.12	2023.07.13		6,444	USD	5,000		1,288.70
Woori Bank	2023.06.19	2023.07.20		12,759	USD	10,000		1,275.90
Woori Bank	2023.06.22	2023.07.18		12,886	USD	10,000		1,288.60

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(2)	Currency forward contracts which are not designated as hedging instruments as of June 30, 2023 are as follows, continued:

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)
Counterparty	Contract date	Maturity date	Pay		Receive		Contract exchange rate (in won)
Woori Bank	2023.06.27	2023.07.21		13,002	USD	10,000		1,300.20
Hana Bank	2023.06.07	2023.07.06		6,479	USD	5,000		1,295.82
Hana Bank	2023.06.15	2023.07.18		6,371	USD	5,000		1,274.20
Hana Bank	2023.06.20	2023.07.19		12,790	USD	10,000		1,278.96
Hana Bank	2023.06.27	2023.07.12		13,047	USD	10,000		1,304.66
JP Morgan	2023.06.09	2023.07.11		6,469	USD	5,000		1,293.88
JP Morgan	2023.06.15	2023.07.19		12,794	USD	10,000		1,279.40
JP Morgan	2023.06.21	2023.07.12		12,907	USD	10,000		1,290.65
JP Morgan	2023.06.27	2023.07.21		13,009	USD	10,000		1,300.90
JP Morgan	2023.06.30	2023.07.06		13,194	USD	10,000		1,319.35
SMBC	2023.06.13	2023.10.24		6,315	USD	5,000		1,263.00
HSBC	2023.06.09	2023.07.13		2,592	USD	2,000		1,296.10
HSBC	2020.10.19	2024.10.29		140,913	USD	125,000		1,127.30
MUFG	2023.06.02	2023.07.27		4,944	USD	3,779		1,308.40
HSBC	2023.06.09	2023.08.07		3,875	USD	3,000		1,291.72
HSBC	2023.06.09	2023.08.07		1,291	USD	1,000		1,291.22
HSBC	2023.06.09	2023.08.07		1,290	USD	1,000		1,290.22
HSBC	2023.06.12	2023.08.07		3,853	USD	3,000		1,284.20
Hana Bank	2023.06.13	2023.08.23		3,803	USD	3,000		1,267.70
Busan Bank	2023.06.22	2023.08.23		12,863	USD	10,000		1,286.27
Shinhan Bank	2023.06.22	2023.08.23		12,868	USD	10,000		1,286.80
Hana Bank	2023.06.26	2023.08.23		13,001	USD	10,000		1,300.10
Shinhan Bank	2023.06.26	2023.08.23		12,999	USD	10,000		1,299.90
Hana Bank	2023.06.27	2023.08.23		12,984	USD	10,000		1,298.44

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(3)	Currency swap contracts which are not designated as hedging instruments as of June 30, 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)
Counterparty	Contract year	Pay		Receive		Pay			Receive			Contract exchange rate (in won, USD)
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
Export-Import Bank of Korea	2023~2030		172,982	HKD	1,037,000		4.25	%		4.51	%		166.81
HSBC	2019~2024	USD	205,500	AUD	300,000		3M Libor + 0.78	%		3M BBSW + 0.97	%	USD	0.69

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(4)	Currency swap contracts which are designated as hedging instruments as of June 30, 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)
Counterparty	Contract year	Pay		Receive		Pay			Receive			Contract exchange rate (in won)
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
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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(5)	Interest rate swap contracts which are not designated as hedging instruments as of June 30, 2023 are as follows:

In millions of won and thousands of foreign currencies


Counterparty	Contract year		Contract amount		Contract interest rate per annum
Counterparty	Contract year		Contract amount		Pay		Receive
Nomura (*1)		2018~2038		30,000		3M CD + 0.10%		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	%
Shinhan Bank		2023~2028		300,000		3.81%	3M CD	+ 0.70	%
Nomura		2017~2032		52,457		2.55% + Floating rate		2.60	%
Nomura		2017~2032		59,423		2.57% + 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	865		0.48%		3.33	%
DBS Bank		2022~2025	AUD	865		0.48%		3.33	%
Societe Generale		2022~2025	AUD	865		0.48%		3.28	%
MUFG		2022~2048	USD	155,941		SOFR(3M)		3.71	%
Mizuho Bank		2022~2048	USD	155,941		SOFR(3M)		1.05	%
Mizuho Bank		2022~2024	USD	112,194		SOFR(1M)		1.80	%

(*1)	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 June 30, 2023 are as follows:

In thousands of USD

Counterparty

Contract interest rate per annum

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

46,712

4.16

6M USD Libor

KFW

2009~2027

USD

46,712

4.16

6M USD Libor

Export-Import Bank of Korea

2016~2036

USD

63,461

3.00

6M USD Libor

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

12.	Derivatives, Continued

(7)	Gain and loss on valuation and transaction of derivatives for the three and six-month periods ended June 30, 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) (*)
	June 30, 2023					June 30, 2022				June 30, 2023				June 30, 2022						June 30, 2023						June 30, 2022
	Three- month period ended			Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended
Currency forward		6,819			15,532		27,131		22,518		9,766		17,091		23,741			32,110			—			—			—		—
Currency swap		(619	)		422,585		606,227		710,162		26,559		38,460		61,278			79,596			(35,208	)		(27,638	)		39,845		(43,069	)
Interest rate swap		119,981			55,916		54,800		75,055		7,167		15,729		(5,390	)		(7,262	)		4,592			3,773			5,622		16,443

		126,181			494,033		688,158		807,735		43,492		71,280		79,629			104,444			(30,616	)		(23,865	)		45,467		(26,626	)

(*)	For the six-month periods ended June 30, 2023 and 2022, the net loss on valuation of derivatives applying cash flow hedge accounting of 11,947 and 7,446 million, net of tax, are included in other comprehensive income (loss), respectively.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

13.	Other Financial Assets

(1)	Other financial assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023						December 31, 2022
	Current			Non-current			Current			Non-current
Loans		110,158			995,693			132,890			968,468
Less: allowance for doubtful accounts		—			(59,291	)		(13	)		(54,824	)
Less: present value discount		(844	)		(34,094	)		(816	)		(32,334	)

		109,314			902,308			132,061			881,310

Long-term / short-term financial instruments		580,514			726,025			666,758			686,322

		689,828			1,628,333			798,819			1,567,632

(2)	Loans as of June 30, 2023 and December 31, 2022 are as follows:



In millions of won	June 30, 2023
	Face value		Allowance for doubtful accounts			Present value discount			Carrying value
Short-term loans
Loans for tuition		32,102		—			(844	)		31,258
Loans for housing		31,105		—			—			31,105
Other loans		46,951		—			—			46,951

		110,158		—			(844	)		109,314

Long-term loans
Loans for tuition		429,581		(37,783	)		(34,094	)		357,704
Loans for housing		309,069		—			—			309,069
Loans for related parties		249,467		(21,508	)		—			227,959
Other loans		7,576		—			—			7,576

		995,693		(59,291	)		(34,094	)		902,308

		1,105,851		(59,291	)		(34,938	)		1,011,622


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

13.	Other Financial Assets, Continued

(3)	Changes in the allowance for doubtful accounts of loans for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		54,837			52,677
Bad debts expense		4,467			2,180
Others		(13	)		(20	)

Ending balance		59,291			54,837

(4)	Long-term and short-term financial instruments as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Time deposits		372,404		138,630		428,813		130,570
CD		—		—		30,000		—
Others		208,110		587,395		207,945		555,752

		580,514		726,025		666,758		686,322

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

14.	Inventories

Inventories as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Acquisition cost		Valuation allowance			Book value
Raw materials		4,728,073		(1,342	)		4,726,731
Merchandises		787		—			787
Work-in-progress		191,160		—			191,160
Finished goods		64,045		(57	)		63,988
Supplies		2,863,218		—			2,863,218
Inventories-in-transit		1,547,475		—			1,547,475
Other inventories		14,813		—			14,813

		9,409,571		(1,399	)		9,408,172


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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 amounts to 7,137 million and 18,162 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 were 7,054 million and 14,528 million, respectively.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

15.	Non-Financial Assets

Non-financial assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Advanced payments		444,839		60,727		160,596		51,425
Prepaid expenses		372,945		150,672		366,532		153,830
Others (*)		831,877		44,785		1,217,741		103,879

		1,649,661		256,184		1,744,869		309,134

(*)	Details of others as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Greenhouse gas emissions rights		260,143		—		192,005		—
Other quick assets		571,734		44,785		1,025,736		103,879

		831,877		44,785		1,217,741		103,879

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries

(1)	Consolidated subsidiaries as of June 30, 2023 and December 31, 2022 are as follows:


Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 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. (*2)	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	%
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		80.03	%		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 (*3)	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 (*4)	Power generation	Pakistan		76.00	%		76.00	%

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of June 30, 2023 and December 31, 2022 are as follows, continued:


Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 2023			December 31, 2022
KOSEP Material Co., Ltd.	Recycling fly ashes	Korea		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd. (*5)	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.	Operation of utility plant	Korea		100.00	%		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	%

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of June 30, 2023 and December 31, 2022 are as follows, continued:


Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 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. (*4,7)	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	%		—
KOWEPO Holding Limited	Holding company	United Arab Emirates		100.00	%		—

(*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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of June 30, 2023 and December 31, 2022 are as follows, continued:

(*2)	The Group is planning to sell the subsidiary, but time and proceeds of the sales are not specified as of June 30, 2023.

(*3)	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.

(*4)	As of June 30, 2023, the annual reporting period of all subsidiaries ends on December 31, except for Mira Power Limited and Columboola Solar Farm Hold Co Pty., Ltd.

(*5)

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.

(*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 June 30, 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 six-month period ended June 30, 2023 are as follows:

Subsidiaries included in consolidation during the six-month period ended June 30, 2023.


Subsidiaries		Reason
Chile Solar JV SpA		Change in the scope of consolidation
KEPCO KPS South Africa Pty., Ltd.		New investment
KOWEPO Holding Limited		New investment

Subsidiaries excluded from consolidation during the six-month period ended June 30, 2023.


Subsidiaries		Reason
KHNP Spain, S.L.		Liquidation
KEPCO for Power Company		Change in the scope of consolidation
KEPCO Lebanon SARL		Under liquidation process

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won

June 30, 2023
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.		69,793,001		44,566,129		4,087,480		(1,033,624	)
Korea South-East Power Co., Ltd.		12,919,926		6,959,963		4,061,190		(41,400	)
Korea Midland Power Co., Ltd.		14,664,497		9,875,974		3,881,900		(134,748	)
Korea Western Power Co., Ltd.		12,457,517		7,563,171		3,464,138		(32,040	)
Korea Southern Power Co., Ltd.		12,759,369		7,503,315		3,919,847		(98,966	)
Korea East-West Power Co., Ltd.		11,605,832		5,602,190		3,093,583		98,857
KEPCO Engineering & Construction Company, Inc.		927,550		381,422		228,509		20,477
KEPCO Plant Service & Engineering Co., Ltd.		1,546,051		327,926		760,249		86,892
KEPCO Nuclear Fuel Co., Ltd.		991,340		524,265		145,582		25,295
KEPCO KDN Co., Ltd.		727,780		178,990		306,853		11,494
KEPCO International HongKong Ltd.		138,217		—		—		4,744
KEPCO International Philippines Inc.		135,004		2		—		2,716
KEPCO Gansu International Ltd.		7,373		619		—		(8	)
KEPCO Philippines Holdings Inc.		186,680		33		—		6,089
KEPCO Philippines Corporation		2,601		2		—		64
KEPCO Ilijan Corporation		143,623		1,197		—		1,656
KEPCO Neimenggu International Ltd.		279,145		4,057		—		(114	)
KEPCO Shanxi International Ltd.		624,415		230,607		—		5,143
KOMIPO Global Pte Ltd.		413,979		1,462		—		8,923
KEPCO Netherlands B.V.		142,954		77		—		2
KEPCO Australia Pty., Ltd.		653		16		—		62
KOSEP Australia Pty., Ltd.		79,416		15,398		14,787		4,314
KOMIPO Australia Pty., Ltd.		84,711		9,690		14,787		3,281
KOWEPO Australia Pty., Ltd.		84,857		9,448		14,787		2,999
KOSPO Australia Pty., Ltd.		44,683		9,351		14,787		4,866
KEPCO Middle East Holding Company		122,350		110,903		—		(3,706	)
Qatrana Electric Power Company		521,347		235,891		13,361		9,640
KHNP Canada Energy Ltd.		119,281		7,444		—		181
KEPCO Bylong Australia Pty., Ltd.		44,096		462,989		—		(20,360	)
Korea Waterbury Uranium Limited Partnership		20,780		81		—		(39	)
KEPCO Holdings de Mexico		1,679		2,697		—		328
KST Electric Power Company, S.A.P.I. de C.V.		637,733		503,800		42,030		5,025
KEPCO Energy Service Company		2,499		1,106		4,793		306
KEPCO Netherlands S3 B.V.		73,201		17,014		—		583
PT. KOMIPO Pembangkitan Jawa Bali		23,060		6,436		13,269		4,147
PT. Cirebon Power Service		2,648		702		4,432		353
KOWEPO International Corporation		—		11		—		—
KOSPO Jordan LLC		22,931		4,233		8,694		3,861
EWP America Inc. (*1)		50,096		3,648		6,356		(288	)
KNF Canada Energy Limited		2,205		39		—		(23	)
EWP Barbados 1 SRL		426,205		1,445		1,619		16,219
Gyeonggi Green Energy Co., Ltd.		197,433		223,649		39,621		(20,149	)
PT. Tanggamus Electric Power		230,299		158,422		3,228		4,672
Gyeongju Wind Power Co., Ltd.		96,365		55,315		11,260		4,116
KOMIPO America Inc. (*2)		590,753		315,086		10,249		13,362
PT. EWP Indonesia		101,198		12		—		4,164
KEPCO Netherlands J3 B.V.		151,619		3,886		—		7,650
Korea Offshore Wind Power Co., Ltd.		344,043		151,911		24,611		8,012
Global One Pioneer B.V.		227		82		—		(43	)
Global Energy Pioneer B.V.		420		80		—		(42	)
Mira Power Limited		397,279		311,116		25,514		(902	)
KOSEP Material Co., Ltd.		4,310		481		2,330		426
Commerce and Industry Energy Co., Ltd.		74,164		30,453		14,193		(3,314	)
KEPCO KPS Philippines Corp.		5,351		629		1,496		(172	)
KOSPO Chile SpA		166,738		74,740		—		(668	)

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows, continued:


In millions of won

June 30, 2023
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
PT. KOWEPO Sumsel Operation And Maintenance Services		27		273		—		—
Hee Mang Sunlight Power Co., Ltd.		5,989		2,587		359		130
Fujeij Wind Power Company		220,947		164,552		—		8,177
KOSPO Youngnam Power Co., Ltd.		391,040		280,617		293,938		(1,746	)
Chitose Solar Power Plant LLC		97,949		84,013		7,800		1,430
KEPCO Energy Solution Co., Ltd.		315,583		1,649		8,986		2,688
KEPCO Solar Co., Ltd.		242,695		25,087		12,830		5,375
KOSPO Power Services Ltda.		7,137		5,280		9,656		1,738
Energy New Industry Specialized Investment Private Investment Trust (*3)		446,838		2,381		7,523		2,352
KOEN Bylong Pty., Ltd.		11		125		—		—
KOMIPO Bylong Pty., Ltd.		11		131		—		(8	)
KOWEPO Bylong Pty., Ltd.		11		128		—		(31	)
KOSPO Bylong Pty., Ltd.		26		157		—		—
EWP Bylong Pty., Ltd.		8		55		—		—
KOWEPO Lao International		10,441		262		5,066		1,817
KEPCO US Inc.		93		—		—		(1	)
KEPCO Mangilao Holdings LLC		115,999		42,206		383		(1,140	)
Mangilao Investment LLC		263,710		11		—		(1	)
KEPCO Mangilao Solar, LLC		259,906		990		6,359		(894	)
Jeju Hanlim Offshore Wind Co., Ltd.		266,512		196,092		—		(3,682	)
PT. Siborpa Eco Power		12,465		—		—		(16	)
PT. Korea Energy Indonesia		2,054		126		983		197
KOLAT SpA		51,951		1,537		1,157		280
KEPCO California, LLC		47,673		6,880		302		(99	)
KEPCO Mojave Holdings, LLC		96,923		78,516		—		(1,978	)
Incheon Fuel Cell Co., Ltd.		255,075		238,332		45,795		(9,144	)
KOEN Service Co., Ltd.		9,307		4,782		18,617		852
KOMIPO Service Co., Ltd.		6,692		4,395		18,351		202
KOWEPO Service Co., Ltd.		6,393		3,181		17,036		124
KOSPO Service Co., Ltd.		5,591		3,983		14,209		181
EWP Service Co., Ltd.		4,635		2,474		13,201		641
PT. KOMIPO Energy Indonesia		2,059		34		113		(786	)
KNF partners Co., Ltd.		2,222		873		2,677		116
KOSPO USA Inc.		322,054		405		—		(4,176	)
Nambu USA LLC		305,423		162		—		23
Tamra Offshore Wind Power Co., Ltd.		124,316		87,930		8,485		176
KEPCO MCS Co., Ltd.		118,085		64,534		143,656		(3,443	)
KEPCO FMS Co., Ltd.		26,394		17,095		53,419		4,114
Firstkeepers Co., Ltd.		19,441		14,153		44,593		1,969
Secutec Co., Ltd.		14,227		10,245		35,288		328
SE Green Energy Co., Ltd.		146,931		114,582		19,073		(1,469	)
Mangilao Intermediate Holdings LLC		241,036		119,322		—		(2,035	)
KEPCO CSC Co., Ltd.		11,835		9,969		21,033		135
KOAK Power Limited		15,794		698		—		1,345
KOMIPO Europe B.V.		84,818		132		585		(82	)
Haenanum Energy Fund		7,461		20		47		28
Paju Ecoenergy Co., Ltd.		59,717		2,424		7,341		(1,571	)
Guam Ukudu Power LLC		479,770		437,701		—		(7,415	)
K-SOLAR SHINAN Co., Ltd.		304,204		289,918		17,999		(9,798	)

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows, continued:


In millions of won

June 30, 2023
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
KPS Partners Co., Ltd.		4,472		2,796		6,416		110
KEPCO E&C Service Co., Ltd.		6,804		2,246		8,067		780
Moha solar Co., Ltd.		27,765		29,698		—		330
Ogiri Solar Power Co., Ltd.		1,033		29		—		(6	)
KHNP USA LLC		1,298		70		366		(8	)
KOMIPO Vanphong Power Service LLC		22,768		2,242		10,965		7,355
Energy Innovation Fund I		43,550		63		—		(449	)
KHNP Chile SpA		5,645		4,275		—		(30	)
Yeong Yang Apollon Photovoltaic Co., Ltd.		1,547		1,440		118		47
Yeong Yang Corporation Co., Ltd.		1,537		1,430		116		45
SolarVader Co., Ltd.		1,548		1,433		117		47
Yeong Yang Innovation Co., Ltd.		1,531		1,430		112		42
Yeong Yang Horus Photovoltaic Co., Ltd.		1,525		1,430		110		40
Yeong Yang Solar Management Co., Ltd.		1,556		1,433		121		49
LSG Hydro Power Limited		842		8		—		(95	)
KOEN Bio Co., Ltd.		395		283		823		45
KOMIPO Iberian Solar Group, S.L.U.		84,113		69,210		—		1,149
Jeongam Wind Power Co., Ltd.		78,045		65,311		3,994		(748	)
KOWEPO Europe B.V.		43,780		3,063		—		(1,945	)
Yeongdeok Sunrise Wind Power Co., Ltd.		55,472		35,899		—		(583	)
KA Power Limited		3,855		623		—		475
Western Power Changgi Solar Co., Ltd.		47,457		41,735		4,457		1,598
EWP Australia Pty., Ltd.		55,715		—		—		3,994
Columboola Solar Farm Hold Co Pty., Ltd.		324,385		221,139		5,333		6,635
Digital Innovation Growth Fund		12,291		—		—		(203	)
J Wind First, LLC		47,235		47,235		1,122		—
KEPCO Holding Company		3,399		18		—		—
KEPCO for Maintenance Company		173		—		—		(2	)
KOSPO Trumbull LLC		28		3		—		(10	)
Changjuk Wind Power Co., Ltd.		24,527		2,369		3,554		1,586
Chile Solar JV SpA		87,152		58,122		2,871		(931	)
KEPCO KPS South Africa Pty., Ltd.		1		—		—		—
KOWEPO Holding Limited		1,359		1,364		—		(5	)

(*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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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	)

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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)

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(4)	Significant restrictions on abilities to subsidiaries as of June 30, 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.
Guam Ukudu Power LLC		Dividends can only be paid when all conditions of the loan agreement are satisfied. Disposal of whole or part of assets is restricted, and the Group’s shares cannot be either wholly or partially transferred without prior consent of other stakeholders including financial institutions and others.

(5)	As of June 30, 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(6)	Details of non-controlling interests prior to intra-Company eliminations as of and for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won

June 30, 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		142,746			908,991			508,336			977,219			2,537,292
Non-current assets		877			637,060			419,214			4,710,768			5,767,919
Current liabilities		(1,197	)		(312,184	)		(338,866	)		(933,614	)		(1,585,861	)
Non-current liabilities		—			(15,742	)		(42,556	)		(2,553,279	)		(2,611,577	)
Net assets		142,426			1,218,125			546,128			2,201,094			4,107,773
Book value of non-controlling interests		69,789			596,881			185,247			497,767			1,349,684
Sales		—			760,249			228,509			766,535			1,755,293
Profit for the period		1,656			86,892			20,477			19,161			128,186
Profit for the period attributable to non-controlling interests		811			42,577			6,946			(16,631	)		33,703
Cash flows from operating activities		(1,693	)		63,085			140,808			398,656			600,856
Cash flows from investing activities		60			21,706			(46,985	)		(502,551	)		(527,770	)
Cash flows from financing activities before dividends to non-controlling interests		(92,485	)		(33,310	)		(7,734	)		(139,036	)		(272,565	)
Dividends to non-controlling interests		(638	)		(28,775	)		(3,652	)		(11,895	)		(44,960	)
Effect of exchange rate fluctuation		6,923			(428	)		(30	)		231,389			237,854
Net increase of cash and cash equivalents		(87,833	)		22,278			82,407			(23,437	)		(6,585	)


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

16.	Consolidated Subsidiaries, Continued

(7)	Changes in goodwill

(i)

Details of goodwill as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won

	June 30, 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

(*)

The Group recorded 25,432 of increase for the six-month period ended June 30, 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.


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

(8)	Disposals of subsidiaries

The Group is proceeding the liquidation process of KEPCO Lebanon SARL, its subsidiary, and has completed the liquidation process of other subsidiary, KHNP Spain, S.L. during the six-month period ended June 30, 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

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures

(1)	Investments in associates and joint ventures as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won
June 30, 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		2,126,050
YTN Co., Ltd. (*1)	Broadcasting		Korea		21.43	%		59,000		53,206
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service		Korea		29.00	%		88,885		117,143
Korea Power Exchange (*2)	Management of power market and others		Korea		100.00	%		127,839		279,295
SPC Power Corporation (*3)	Power generation		Philippines		38.00	%		20,635		79,217
Gemeng International Energy Co., Ltd.	Power generation		China		34.00	%		413,153		570,974
PT. Cirebon Electric Power	Power generation		Indonesia		27.50	%		40,365		134,823
PT Wampu Electric Power	Power generation		Indonesia		46.00	%		21,292		37,488
PT. Bayan Resources TBK	Resources development		Indonesia		20.00	%		615,860		654,206
S-Power Co., Ltd.	Power generation		Korea		49.00	%		132,300		153,619
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation		Laos		25.00	%		87,426		120,946
Goseong Green Power Co., Ltd.	Power generation		Korea		29.00	%		262,740		310,282
Gangneung Eco Power Co., Ltd.	Power generation		Korea		29.00	%		261,000		280,285
Shin Pyeongtaek Power Co., Ltd.	Power generation		Korea		40.00	%		72,000		170,049
Dongducheon Dream Power Co., Ltd. (*4)	Power generation		Korea		33.61	%		148,105		86,361
GS Donghae Electric Power Co., Ltd.	Power generation		Korea		34.00	%		204,000		262,381
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation of utility plant		Nepal		76.73	%		101,549		106,124
Indeck Niles Development, LLC	Holding company		USA		50.00	%		263,825		325,607
PT. Cirebon Energi Prasarana (*6)	Power generation		Indonesia		10.00	%		26,710		77,306
Others (Gangwon Wind Power Co., Ltd. and 75 others)								334,749		326,591

								3,375,933		6,271,953

<Joint ventures>
Shuweihat Asia Power Investment B.V.	Holding company		Netherland		49.00	%		44,405		73,240
KEPCO SPC Power Corporation (*3,7)	Construction and operation of utility plant		Philippines		75.20	%		94,579		202,115
Datang Chifeng Renewable Power Co., Ltd.	Power generation		China		40.00	%		121,928		200,135
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		China		40.00	%		39,872		45,360
Rabigh Electricity Company	Power generation		Saudi Arabia		40.00	%		109,743		244,930
Jamaica Public Service Company Limited	Power generation		Jamaica		40.00	%		301,910		357,202
Amman Asia Electric Power Company (*7)	Power generation		Jordan		60.00	%		111,476		228,095
Chun-cheon Energy Co., Ltd.	Power generation		Korea		29.90	%		52,700		36,343
Nghi Son 2 Power LLC	Power generation		Vietnam		50.00	%		175,261		442,995
Kelar S.A. (*7)	Power generation		Chile		65.00	%		78,060		133,372
PT. Tanjung Power Indonesia	Power generation		Indonesia		35.00	%		57,039		100,847
South Jamaica Power Company Limited	Power generation		Jamaica		20.00	%		20,430		43,986
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,948		82,345
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,891		52,895
Solar Philippines Calatagan Corporation	Power generation		Philippines		38.00	%		47,903		56,319
PT Barito Wahana Tenaga	Power generation		Indonesia		30.61	%		59,574		153,794
OneEnergy Asia Limited	Power generation		Vietnam		40.00	%		160,108		244,555
Prime Swedish Holding AB	Holding company		Sweden		45.00	%		35,410		38,069
Others (Dangjin Eco Power Co., Ltd. and 88 others)								811,046		749,842

								2,392,283		3,486,439

								5,768,216		9,758,392

(*1)

The Group planned to sell its investments in YTN Co., Ltd. following the resolution made at the Board of Directors’ meeting held on November 23, 2022, but since the final sale will be subject to approval by the Korea Communications Commission and the Fair Trade Commission, the Group is planning to classify the shares as assets-held-for-sale after the approval.

(*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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of June 30, 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 June 30, 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of June 30, 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)

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of June 30, 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)

(*6)

(*7)

(*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.

(2)	The fair value of associates which are actively traded on an open market and have a readily available market value as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won

Investees	June 30, 2023		December 31, 2022
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		70,905		80,454
Korea Gas Corporation		485,730		684,180
YTN Co., Ltd.		62,100		50,220
SPC Power Corporation		114,616		121,995
PT. Bayan Resources TBK		9,052,000		11,326,001

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won

June 30, 2023
Investees	Beginning balance		Acquisition		Disposals			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation		2,085,296		—		—			—			13,425			27,287			42			2,126,050
YTN Co., Ltd.		55,027		—		—			(540	)		(1,320	)		(4	)		43			53,206
Hyundai Green Power Co., Ltd.		119,791		—		—			(3,555	)		907			—			—			117,143
Korea Power Exchange		275,126		—		—			—			4,169			—			—			279,295
SPC Power Corporation		70,868		—		—			—			6,052			2,297			—			79,217
Gemeng International Energy Co., Ltd.		578,821		—		—			(12,702	)		4,086			3,465			(2,696	)		570,974
PT. Cirebon Electric Power		135,114		—		—			(9,971	)		4,899			—			4,781			134,823
PT Wampu Electric Power		37,743		—		—			(1,437	)		(2,728	)		2,577			1,333			37,488
PT. Bayan Resources TBK		684,719		—		—			(213,968	)		145,408			38,080			(33	)		654,206
S-Power Co., Ltd.		141,128		—		—			—			12,491			—			—			153,619
Xe-Pian Xe-Namnoy Power Co., Ltd.		115,584		—		—			—			1,387			3,975			—			120,946
Goseong Green Power Co., Ltd.		288,893		—		—			—			21,404			—			(15	)		310,282
Gangneung Eco Power Co., Ltd.		—		258,100		—			—			22,185			—			—			280,285
Shin Pyeongtaek Power Co., Ltd.		133,823		—		—			(26,880	)		63,106			—			—			170,049
Dongducheon Dream Power Co., Ltd.		89,300		—		—			—			(3,456	)		—			517			86,361
GS Donghae Electric Power Co., Ltd.		260,145		—		—			(9,249	)		11,485			—			—			262,381
Nepal Water & Energy Development Company Private Limited		69,940		31,321		—			—			2,160			2,703			—			106,124
Indeck Niles Development, LLC		302,038		—		—			—			12,295			257			11,017			325,607
PT. Cirebon Energi Prasarana		69,035		—		—			—			4,987			727			2,557			77,306
Others (Gangwon Wind Power Co., Ltd. and 76 others)		332,073		8,571		(248	)		(15,021	)		6,856			811			(6,451	)		326,591

		5,844,464		297,992		(248	)		(293,323	)		329,798			82,175			11,095			6,271,953

<Joint ventures>
Shuweihat Asia Power Investment B.V.		66,452		—		—			(508	)		69			7,227			—			73,240
KEPCO SPC Power Corporation		179,594		—		—			—			14,617			7,904			—			202,115
Datang Chifeng Renewable Power Co., Ltd.		191,982		—		—			—			8,841			(688	)		—			200,135
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		44,398		—		—			—			1,091			(129	)		—			45,360
Rabigh Electricity Company		214,607		—		—			—			20,191			10,132			—			244,930
Jamaica Public Service Company Limited		331,407		—		—			—			13,709			11,632			454			357,202
Amman Asia Electric Power Company		220,254		—		—			(7,754	)		7,711			7,884			—			228,095
Chun-cheon Energy Co., Ltd.		32,044		—		—			—			4,299			—			—			36,343
Nghi Son 2 Power LLC		408,839		—		—			—			2,545			31,611			—			442,995
Kelar S.A.		117,137		—		—			—			11,026			840			4,369			133,372
PT. Tanjung Power Indonesia		92,907		—		—			—			4,319			3,907			(286	)		100,847
South Jamaica Power Company Limited		46,437		—		—			(6,095	)		2,166			1,478			—			43,986
RE Holiday Holdings LLC		85,370		—		—			(1,445	)		(3,537	)		1,957			—			82,345
RE Pioneer Holdings LLC		55,172		—		—			(1,162	)		(2,138	)		1,023			—			52,895
Solar Philippines Calatagan Corporation		56,902		—		—			(6,020	)		3,010			2,427			—			56,319
PT Barito Wahana Tenaga		137,047		—		—			—			8,704			8,043			—			153,794
OneEnergy Asia Limited		172,218		44,159		—			—			18,515			9,663			—			244,555
Prime Swedish Holding AB		36,245		—		—			—			(127	)		—			1,951			38,069
Others (Dangjin Eco Power Co., Ltd. and 90 others)		658,572		14,829		(1,188	)		(12,499	)		24,257			65,755			116			749,842

		3,147,584		58,988		(1,188	)		(35,483	)		139,268			170,666			6,604			3,486,439

		8,992,048		356,980		(1,436	)		(328,806	)		469,066			252,841			17,699			9,758,392

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the six-month period ended June 30, 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 comprehen- sive 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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won
June 30, 2023
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		57,067,084		46,464,297		26,057,563		65,585
YTN Co., Ltd.		347,021		98,727		59,082		(4,424	)
Hyundai Green Power Co., Ltd.		746,520		342,580		50,871		3,128
Korea Power Exchange		314,539		35,244		57,663		4,037
SPC Power Corporation		295,924		33,441		52,442		19,173
Gemeng International Energy Co., Ltd.		7,768,472		5,438,340		1,469,931		19,895
PT. Cirebon Electric Power		676,370		186,105		132,309		17,814
PT Wampu Electric Power		208,831		127,335		9,783		(5,932	)
PT. Bayan Resources TBK		3,602,681		1,143,959		2,640,760		987,350
S-Power Co., Ltd.		768,668		452,632		587,756		26,238
Xe-Pian Xe-Namnoy Power Co., Ltd.		1,400,778		913,026		80,399		3,349
Goseong Green Power Co., Ltd.		5,645,571		4,571,639		879,115		72,337
Gangneung Eco Power Co., Ltd.		5,419,537		4,620,571		801,384		74,677
Shin Pyeongtaek Power Co., Ltd.		1,278,365		824,715		569,201		157,011
Dongducheon Dream Power Co., Ltd.		1,354,842		1,061,941		1,038,140		(10,690	)
GS Donghae Electric Power Co., Ltd.		2,139,764		1,368,055		498,261		33,781
Nepal Water & Energy Development Company Private Limited		283,862		146,825		35,040		(1,085	)
Indeck Niles Development, LLC		1,209,606		751,735		147,846		23,962
PT. Cirebon Energi Prasarana		3,642,479		2,869,416		189,539		49,874

<Joint ventures>
Shuweihat Asia Power Investment B.V.		149,470		—		—		143
KEPCO SPC Power Corporation		291,876		23,106		137,514		19,122
Datang Chifeng Renewable Power Co., Ltd.		834,360		334,023		67,770		21,750
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		168,161		54,761		13,804		2,713
Rabigh Electricity Company		2,663,331		1,928,589		164,625		38,373
Jamaica Public Service Company Limited		2,326,808		1,468,262		647,767		36,429
Amman Asia Electric Power Company		756,532		376,374		10,100		16,941
Chun-cheon Energy Co., Ltd.		627,933		505,566		332,673		14,650
Nghi Son 2 Power LLC		3,863,541		2,977,551		363,900		8,940
Kelar S.A.		717,078		516,547		60,602		11,562
PT. Tanjung Power Indonesia		756,469		468,333		51,125		6,587
South Jamaica Power Company Limited		519,065		299,124		118,775		11,115
RE Holiday Holdings LLC		345,371		180,681		3,254		(3,535	)
RE Pioneer Holdings LLC		260,684		154,895		3,019		(2,245	)
Solar Philippines Calatagan Corporation		148,169		42,591		7,617		3,927
PT Barito Wahana Tenaga		502,393		—		—		33,637
OneEnergy Asia Limited		1,769,683		1,222,077		391,244		42,858
Prime Swedish Holding AB		82,004		123		—		(281	)

(*)	The profit for the six-month period ended June 30, 2023 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 six-month period ended June 30, 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won
June 30, 2023
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation		10,602,787		20.47	%		2,170,391		—		—			(44,341	)		2,126,050
YTN Co., Ltd.		248,294		21.43	%		53,206		—		—			—			53,206
Hyundai Green Power Co., Ltd.		403,940		29.00	%		117,143		—		—			—			117,143
Korea Power Exchange		279,295		100.00	%		279,295		—		—			—			279,295
SPC Power Corporation		262,483		38.00	%		99,744		—		—			(20,527	)		79,217
Gemeng International Energy Co., Ltd.		2,330,132		34.00	%		792,245		—		—			(221,271	)		570,974
PT. Cirebon Electric Power		490,265		27.50	%		134,823		—		—			—			134,823
PT Wampu Electric Power		81,496		46.00	%		37,488		—		—			—			37,488
PT. Bayan Resources TBK		2,458,722		20.00	%		491,745		238,841		—			(76,380	)		654,206
S-Power Co., Ltd.		316,036		49.00	%		154,858		—		(1,239	)		—			153,619
Xe-Pian Xe-Namnoy Power Co., Ltd.		487,752		25.00	%		121,938		305		(1,008	)		(289	)		120,946
Goseong Green Power Co., Ltd.		1,073,932		29.00	%		311,440		—		(1,158	)		—			310,282
Gangneung Eco Power Co., Ltd.		798,966		29.00	%		231,700		48,663		(78	)		—			280,285
Shin Pyeongtaek Power Co., Ltd.		453,650		40.00	%		181,460		3,559		(14,970	)		—			170,049
Dongducheon Dream Power Co., Ltd.		292,901		34.01	%		99,616		1,757		(2,430	)		(12,582	)		86,361
GS Donghae Electric Power Co., Ltd.		771,709		34.00	%		262,381		—		—			—			262,381
Nepal Water & Energy Development Company Private Limited		137,037		76.73	%		105,152		972		—			—			106,124
Indeck Niles Development, LLC		457,871		50.00	%		228,936		92,302		—			4,369			325,607
PT. Cirebon Energi Prasarana		773,063		10.00	%		77,306		—		—			—			77,306

<Joint ventures>
Shuweihat Asia Power Investment B.V.		149,470		49.00	%		73,240		—		—			—			73,240
KEPCO SPC Power Corporation		268,770		75.20	%		202,115		—		—			—			202,115
Datang Chifeng Renewable Power Co., Ltd.		500,337		40.00	%		200,135		—		—			—			200,135
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		113,400		40.00	%		45,360		—		—			—			45,360
Rabigh Electricity Company		734,742		40.00	%		293,896		—		(48,162	)		(804	)		244,930
Jamaica Public Service Company Limited		858,546		40.00	%		343,418		29,357		—			(15,573	)		357,202
Amman Asia Electric Power Company		380,158		60.00	%		228,095		—		—			—			228,095
Chun-cheon Energy Co., Ltd.		122,367		29.90	%		36,588		3		—			(248	)		36,343
Nghi Son 2 Power LLC		885,990		50.00	%		442,995		—		—			—			442,995
Kelar S.A.		200,531		65.00	%		130,345		3,027		—			—			133,372
PT. Tanjung Power Indonesia		288,136		35.00	%		100,847		—		—			—			100,847
South Jamaica Power Company Limited		219,941		20.00	%		43,988		—		—			(2	)		43,986
RE Holiday Holdings LLC		164,690		50.00	%		82,345		—		—			—			82,345
RE Pioneer Holdings LLC		105,789		50.00	%		52,895		—		—			—			52,895
Solar Philippines Calatagan Corporation		105,578		38.00	%		40,120		—		—			16,199			56,319
PT Barito Wahana Tenaga		502,393		30.61	%		153,794		—		—			—			153,794
OneEnergy Asia Limited		547,606		40.00	%		219,042		25,513		—			—			244,555
Prime Swedish Holding AB		81,881		45.00	%		36,847		1,222		—			—			38,069

(*)	The percentage of ownership shown above is after considering the treasury stocks and others.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(6)	As of June 30, 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	June 30, 2023					December 31, 2022
	Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
Eurasia Energy Holdings		8			211		13			203
Gunsan Bio Energy Co., Ltd.		55			4,041		122			3,986
Dayone Energy Co., Ltd.		(1,512	)		25,505		3,565			27,017
Nghi Son 2 Power LLC		—			—		(18,940	)		—
Samcheok Eco Materials Co., Ltd.		220			1,026		344			806
Naepo Green Energy Co., Ltd.		6,896			21,852		7,209			14,956
Barakah One Company		27,219			121,192		51,137			93,973
Pioneer Gas Power Limited		14,927			71,804		19,248			56,877
Incheon New Power Co., Ltd.		—			—		(163	)		—
Bigeum Resident Photovoltaic Power Co., Ltd.		(460	)		—		162			460
KAPES, Inc.		783			3,943		(355	)		3,160
Chester Solar IV SpA		—			—		(21	)		—
ITR Co., Ltd.		(5	)		—		5			5
SEP Co., Ltd.		1			15		14			14
International Offshore Power Transmission Holding Company Limited		(23,378	)		—		23,378			23,378
Noeul Green Energy Co., Ltd.		1,861			7,331		5,470			5,470
Gangneung Eco Power Co., Ltd.		(14	)		—		14			14

(7)	As of June 30, 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(7)	As of June 30, 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)

Hyundai Green Power Co., Ltd.

As of June 30, 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.

(viii)

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.

(ix)

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.

(x)

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.

(xi)

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.

(xii)

Taebaek Guinemi Wind Power Co., Ltd.

If shareholders other than the Group intend to sell their shares after the elapse of warranty period for wind power generators specified in the EPC contract is completed, the Group has preferential right to other parties and third parties to take over the shares of the other investors at fair value of the shares, considering the financial conditions, management conditions, and others.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

17.	Investments in Associates and Joint Ventures, Continued

(8)	Significant restrictions on the Group’s abilities on associates and joint ventures as of June 30, 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.

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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 are as follows, continued:


Company		Nature and extent of any significant restrictions

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.

Trumbull Asset Management, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

18.	Property, Plant and Equipment

(1)	Property, plant and equipment as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land		14,375,926		(27,404	)		—			(27,811	)		14,320,711
Buildings		24,477,307		(47,906	)		(11,398,191	)		(6,938	)		13,024,272
Structures		84,096,567		(160,429	)		(33,826,417	)		(10,311	)		50,099,410
Machinery		111,113,285		(118,468	)		(56,743,128	)		(544,298	)		53,707,391
Ships		17,228		—			(4,645	)		—			12,583
Vehicles		399,813		(2,140	)		(322,699	)		(116	)		74,858
Equipment		2,233,825		(6,396	)		(1,820,691	)		(43	)		406,695
Tools		1,325,170		(80	)		(1,165,546	)		(6	)		159,538
Construction-in-progress		30,999,597		(156,706	)		—			(22,795	)		30,820,096
Right-of-use assets		6,017,614		—			(2,487,934	)		—			3,529,680
Asset retirement costs		17,585,849		—			(6,612,769	)		(146,423	)		10,826,657
Others		16,149,772		—			(13,600,157	)		—			2,549,615

		308,791,953		(519,529	)		(127,982,177	)		(758,741	)		179,531,506


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

18.	Property, Plant and Equipment, Continued

(2)	Changes in property, plant and equipment for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance			Acquisition		Disposal			Depreciation			Impairment (*)			Others			Ending balance
Land		14,270,937			2,286		(9,118	)		—			—			84,010			14,348,115
(Government grants)		(27,405	)		—		1			—			—			—			(27,404	)
Buildings		13,292,200			2,066		(3,774	)		(462,443	)		—			244,129			13,072,178
(Government grants)		(50,437	)		—		—			2,526			—			5			(47,906	)
Structures		50,449,235			1,126		(169,156	)		(1,424,211	)		—			1,402,845			50,259,839
(Government grants)		(165,608	)		—		686			4,798			—			(305	)		(160,429	)
Machinery		54,191,785			164,645		(93,668	)		(3,035,384	)		(6,167	)		2,604,648			53,825,859
(Government grants)		(127,126	)		—		140			8,475			—			43			(118,468	)
Ships		13,476			—		—			(893	)		—			—			12,583
Vehicles		87,687			276		(35	)		(19,563	)		—			8,633			76,998
(Government grants)		(2,045	)		—		—			433			—			(528	)		(2,140	)
Equipment		435,741			26,992		(130	)		(103,951	)		—			54,439			413,091
(Government grants)		(6,608	)		—		—			986			—			(774	)		(6,396	)
Tools		178,501			9,393		(348	)		(38,724	)		—			10,796			159,618
(Government grants)		(99	)		—		—			19			—			—			(80	)
Construction-in-progress		28,041,471			7,035,782		(2	)		—			—			(4,100,449	)		30,976,802
(Government grants)		(135,926	)		493		—			—			—			(21,273	)		(156,706	)
Right-of-use assets		3,711,125			137,265		(2,131	)		(267,645	)		—			(48,934	)		3,529,680
Asset retirement costs		11,288,967			81		(405	)		(623,383	)		—			161,397			10,826,657
Others		2,419,437			832		(1	)		(455,783	)		—			585,130			2,549,615

		177,865,308			7,381,237		(277,941	)		(6,414,743	)		(6,167	)		983,812			179,531,506

(*)

The Group is in the process of calculating the actual damage in relation to the Taean IGCC gas refinery fire incident in January 2023. For the six-month period ended June 30, 2023, 6,167 million of estimated damage to the Group’s PP&E due to the fire incident has been recognized as impairment loss, and the estimated damage may change depending on future investigations.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

18.	Property, Plant and Equipment, Continued

(2)	Changes in property, plant and equipment for the six-month period ended June 30, 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 15,173 million and 94,264 million as revenue and 22,423 million and 63,405 million as expense in profit or loss for the six-month period ended June 30, 2023 and for the year ended December 31, 2022, respectively.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

19.	Investment Properties

(1)	Investment properties as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land		163,626		—			—			163,626
Buildings		19,498		(25	)		(6,798	)		12,675

		183,124		(25	)		(6,798	)		176,301


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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance			Disposal		Depreciation			Others			Ending balance
Land		194,417			—		—			(30,791	)		163,626
Buildings		13,890			—		(247	)		(943	)		12,700
(Government grants)		(21	)		—		—			(4	)		(25	)

		208,286			—		(247	)		(31,738	)		176,301


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

19.	Investment Properties, Continued

(3)	Income and expenses related to investment properties for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023						June 30, 2022
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Rental income		2,658			5,159			2,426			4,963
Operating and maintenance expenses related to rental income		(185	)		(301	)		(154	)		(255	)

		2,473			4,858			2,272			4,708

(4) Fair value of investment properties as of June 30, 2023 and December 31, 2022 are as follows:
In millions of won	June 30, 2023						December 31, 2022
	Book value			Fair value			Book value			Fair value
Land		163,626			229,550			194,417			292,827
Buildings		12,675			13,511			13,869			15,626

		176,301			243,061			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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

20.	Construction Contracts

(1)	Changes in total contract amount in which revenue is not yet recognized for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance		Increase (decrease) (*)		Recognized as revenue			Ending balance
Nuclear power plant construction in overseas and others		5,594,946		555,962		(313,773	)		5,837,135

(*)	For the six-month period ended June 30, 2023, the increased balance of contracts from new orders is 598,082 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is 42,120 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 June 30, 2023 and December 31, 2022 are as follows:

In millions of won

June 30, 2023

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in overseas and others

22,662,299

21,919,681

742,618

64,748

In millions of won

December 31, 2022

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in overseas and others

22,507,004

21,666,552

840,452

29,877

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:

In millions of won

June 30, 2023

December 31, 2022

Contract assets
(*1)

Contract liabilities
(*2)

Contract assets
(*1)

Contract liabilities
(*2)

Nuclear power plant construction in overseas and others

120,775

226,172

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 June 30, 2023 from the amounts included in contract liabilities at the end of the prior year is 115,589 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 six-month period ended June 30, 2023 are as follows:


In millions of won	June 30, 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		—		(114,330	)		(107,748	)		(6,582	)		138,732		—		19,233		—		—		—
Electric power generation (Nuclear)		—		30,835			131			30,704			81,874		—		—		—		—		—
Plant maintenance & engineering Service		1,854		7,363			4,906			2,457			18,666		18,254		93,986		271		44,782		5,819
Others		—		—			—			—			—		—		7,556		—		—		—

		1,854		(76,132	)		(102,711	)		26,579			239,272		18,254		120,775		271		44,782		5,819

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

21.	Intangible Assets other than Goodwill

(1)	Intangible assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software		1,048,676		(156	)		(844,933	)		(19	)		203,568
Copyrights, patents rights and other industrial rights		105,292		—			(70,344	)		(9,178	)		25,770
Mining rights		635,970		—			(55,650	)		(547,384	)		32,936
Development expenditures		957,626		(2,798	)		(897,094	)		—			57,734
Intangible assets under development		79,473		(2,303	)		—			(8,903	)		68,267
Usage rights of donated assets and others		592,768		—			(441,281	)		(130	)		151,357
Leasehold rights		28,185		—			(23,777	)		—			4,408
Greenhouse gas emissions rights		111,278		—			—			—			111,278
Others		555,833		(369	)		(187,057	)		(12,238	)		356,169

		4,115,101		(5,626	)		(2,520,136	)		(577,852	)		1,011,487


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

21.	Intangible Assets other than Goodwill, Continued

(2)	Changes in intangible assets for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance
Software		203,007			6,788		(17	)		(44,395	)		—			38,341			203,724
(Government grants)		(174	)		—		—			40			—			(22	)		(156	)
Copyrights, patents rights and other industrial rights		28,013			126		(70	)		(2,641	)		—			342			25,770
Mining rights		38,525			2,189		—			(7,439	)		—			(339	)		32,936
Development expenditures		54,505			—		—			(12,565	)		—			18,592			60,532
(Government grants)		(3,477	)		—		—			679			—			—			(2,798	)
Intangible assets under development		67,722			23,864		—			—			—			(21,016	)		70,570
(Government grants)		(2,108	)		—		—			—			—			(195	)		(2,303	)
Usage rights of donated assets and others		157,143			—		—			(5,244	)		—			(542	)		151,357
Leasehold rights		4,888			—		—			(480	)		—			—			4,408
Greenhouse gas emissions rights		43,960			23,661		—			—			—			43,657			111,278
Others		364,727			4,462		(4	)		(12,338	)		(283	)		(26	)		356,538
(Government grants)		(67	)		—		—			47			—			(349	)		(369	)

		956,664			61,090		(91	)		(84,336	)		(283	)		78,443			1,011,487


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

21.	Intangible Assets other than Goodwill, Continued

(3)	Significant specific intangible assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won and thousands of Australian dollars
June 30, 2023
Type	Description	Currency	Amount		Remaining useful lives
Copyrights, patents rights and other industrial rights	Contributions to APR NRC DC	KRW		18,784	4 years and 6 months
Mining rights	Mining rights of Bylong mine	AUD		—	— (*)
Development expenditures	Establishment of asset management system for electricity facilities	KRW		5,209	4 years and 9 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		15,503	3 years and 5 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		7,381	7 years
Others	Occupancy and use of public waters	KRW		73,506	13 years and 7 months
	Greenhouse gas emissions rights	KRW		111,278	—
	Business rights	KRW		151,838	26 years and 5 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 six-month periods ended June 30, 2023 and 2022, the Group recognized research and development expenses of 320,006 million and 313,469 million, respectively.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

22.	Trade and Other Payables

Trade and other payables as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Trade payables		4,793,110		—		7,529,857		—
Non-trade payables		2,065,820		2,056,784		2,132,838		2,023,985
Accrued expenses		1,985,213		5,694		1,605,118		6,351
Leasehold deposits received		3,269		35		2,479		35
Other deposits received		99,167		48,913		97,408		47,863
Lease liabilities		593,918		3,458,143		614,037		3,549,106
Dividends payable		1,949		—		1,812		—
Others (*)		—		12,595		—		11,574

		9,542,446		5,582,164		11,983,549		5,638,914

(*)	Details of others as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Advance received from local governments		—		3,477		—		3,477
Others		—		9,118		—		8,097

		—		12,595		—		11,574

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities

(1)	Borrowings and debt securities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Current liabilities
Short-term borrowings		8,101,089			8,820,425
Current portion of long-term borrowings		5,697,219			3,638,202
Current portion of debt securities		14,407,535			10,205,395
Less: current portion of discount on long-term borrowings		(1,159	)		(774	)
Less: current portion of discount on debt securities		(6,730	)		(4,246	)

		28,197,954			22,659,002

Non-current liabilities
Long-term borrowings		3,088,619			2,977,268
Debt securities		100,376,742			95,160,920
Less: discount on long-term borrowings		(60,943	)		(14,945	)
Less: discount on debt securities		(169,361	)		(177,543	)
Add: premium on debt securities		478			663

		103,235,535			97,946,363

		131,433,489			120,605,365

(2)	Repayment schedule of borrowings and debt securities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won
June 30, 2023
Type	Borrowings		Debt Securities
Less than 1 year		13,798,308		14,407,535
1~ 5 years		1,586,690		71,610,283
Over 5 years		1,501,929		28,766,459

		16,886,927		114,784,277


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(3)	Short-term borrowings as of June 30, 2023 and December 31, 2022 are as follows:

In millions of won and thousands of USD

June 30, 2023

Type

Creditor

Interest rate (%)

Maturity

Foreign
currency

Local
currency

Local short-term borrowings

DB financial investment and others

3.75~4.60

2023.07.04

~2023.12.31

—

4,364,488

Local short-term borrowings

Nonghyup Bank and others

3M CD + 1.04~1.70

2023.11.18

~2024.06.15

—

3,000,000

Foreign short-term borrowings

Korea Development Bank

5.63

2023.08.23

USD 42,715

56,077

Foreign short-term borrowings

Kookmin Bank

5.67~5.90

2023.08.25

~2023.10.24

USD 52,747

69,246

Foreign short-term borrowings

Export-Import Bank of Korea

5.72

2023.08.24

USD 37,451

49,166

Foreign short-term borrowings

Kookmin Bank

SOFR(1M) + 0.95

2023.08.17

USD 40,000

52,512

Electronic short-term bonds

DB financial investment and others

3.86~4.06

2023.07.13

~2023.08.07

—

490,000

Local bank overdraft

Nonghyup Bank

4.45

2023.07.05

—

19,600

8,101,089

In millions of won and thousands of USD

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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won and thousands of foreign currencies
June 30, 2023
Type		Interest rate (%)	Maturity		Foreign currency		Local currency

Local long-term borrowings
Korea Development Bank	Others	0.50		2023~2044		—		1,946
	Facility	2.50~4.94		2023~2042		—		40,804
	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		—		5,300,000
	Facility	4.60		2028		—		7,357
	Facility	3yr KTB rate-2.50		2028		—		3,489
Export-Import Bank of Korea	Project loans	1.50		2026		—		8,838
	Facility	1.32		2028		—		71,965
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25 2.25		2024~2028		—		10,055
	Facility	3yr KTB rate-1.50		2024		—		273
	Project loans	—		2033		—		1,197
Shinhan Bank and others	Facility	CB rate+0.90~1.10		2028~2029		—		18,024
	Commercial Paper	3M CD+0.38		2025		—		150,000
	Others	3.95		2034		—		76,191
	Others	Standard overdraft rate+1.00		2034		—		76,191
Kookmin Bank	Facility	3M CD+1.79 2.10~6.13		2030~2038		—		150,709
	Facility	4.00		2045		—		30,000
Woori Bank	Facility	3M Libor+1.90 5.22~6.13		2034~2042		—		86,684
Others	Facility	3.50~6.80		2028~2044		—		643,021
	Facility	CB rate+1.10 1.75~3.30		2024~2041		—		55,479
	PF Refinancing	CB rate+1.25		2030		—		7,157
	PF Refinancing	4.10		2030		—		19,881
	Securitized debts (*)	3M CD+1.80		2025		—		47,030
	Others	4.40~7.90		2025~2039		—		114,084
	Others	1.80~7.24		2031~2034		—		49,928

								7,020,288

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of June 30, 2023 and December 31, 2022 are as follows, continued:

In millions of won and thousands of foreign currencies

June 30, 2023

Type

Interest rate (%)

Maturity

Foreign

currency

Local

currency

Foreign long-term borrowings

Korea Energy Agency

Project loans

—

2026

USD 8,744

11,479

Export-Import Bank of Korea and others

Direct Loan and others

6M Libor+3.20

2036

USD 81,659

107,202

Direct Loan and others

3M Libor+2.25~3.70

2027

JOD 79,204

146,564

Facility

6M Libor+1.70~2.50

SOFR(1M)+1.83

2029~2032

USD 128,879

169,192

Korea Development Bank and others

EBL

SOFR(1M)+0.86

2024

USD 149,592

196,384

POSCO and others

Shareholder’s loan

5.60~8.00

2025

USD 12,774

16,770

Shareholder’s loan

8.00

2031

JOD 4,853

8,980

Samsung Life Insurance and others

Syndicated Loan

3.10~8.00

2032

JPY 4,385,700

39,777

Woori Bank and others

Syndicated Loan

JPY 6M Libor+1.84

2032

JPY 2,399,088

21,759

Solar Construction Lendings, LLC

Facility

5.00

2025

USD 30,481

40,015

KiwoomSolar Power Professional Investor Private Placement Investment Trust V

Senior borrowing

3.90

2029

EUR 41,857

59,711

IFC and others

Facility

6M Libor+5.00

SOFR(3M)+1.99

6.05~6.62

2028~2031

USD 497,597

653,246

Hanwha US Solar Private Fund and others

Facility

6.00

2039

USD 60,013

78,785

DBS Bank and others

Facility

1M BBSY+1.40~2.25

2025

AUD 187,771

163,175

Nonghyup Bank and others

Facility

10.40

2039

USD 40,000

52,511

1,765,550

8,785,838

Less: discount on long-term borrowings

(62,102

)

Less: current portion of long-term borrowings

(5,697,219

)

Add: current portion of discount on long-term borrowings

1,159

3,027,676

(*)	The main reasons for early repayment of securitized debts as of June 30, 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 Group is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of June 30, 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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of June 30, 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		2,962,323
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 Group is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(5)	Local debt securities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won
	Issue date		Maturity		Interest rate (%)		June 30, 2023			December 31, 2022
Electricity Bonds		2012.03.27~ 2023.06.23		2023.07.05~ 2052.04.21		1.14~5.99		69,480,000			61,190,000
Corporate Bonds (*)		2009.10.16~ 2023.06.29		2023.07.14~ 2053.06.08		1.01~6.06		30,123,153			29,293,188
Corporate Bonds		2021.05.26		2041.05.25		2.50		11,578			11,578

								99,614,731			90,494,766
Less: discount on local debt securities								(58,489	)		(56,924	)
Less: current portion of local debt securities								(12,001,584	)		(8,401,619	)
Add: current portion of discount on local debt securities								3,642			2,344

								87,558,300			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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won and thousands of foreign currencies
June 30, 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		365,879
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		413,160
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		376,669
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000		131,280
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		393,840
FY-17	2017.07.25	2027.07.25	3.13		USD 300,000		393,840
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		57,062
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		54,369
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		276,342
FY-18	2018.07.19~2018.07.25	2023.07.19~2023.07.25	3.75~3.88		USD 1,100,000		1,444,080
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		291,944
FY-19	2019.06.24	2024.06.24	2.50		USD 500,000		656,400
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		437,916
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000		260,703
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 342,753		449,967
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000		393,840
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000		656,400
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000		656,400
FY-20	2020.08.03	2026.02.03	1.00		USD 300,000		393,840
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000		590,760
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000		656,400
FY-21	2021.08.09	2026.08.09	1.25		USD 300,000		393,840
FY-21	2021.09.24	2026.09.24	1.13		USD 300,000		393,840
FY-22	2022.04.21	2027.04.21	3.63		USD 300,000		393,840
FY-22	2022.05.06	2025.05.06	3.60		USD 500,000		656,400
FY-22	2022.06.14	2025.06.14~2027.06.14	3.63~4.00		USD 800,000		1,050,240
FY-22	2022.06.28	2025.06.28	4.13		USD 300,000		393,840
FY-22	2022.07.27	2027.07.27	4.25		USD 700,000		918,960
FY-22	2022.10.06	2026.04.06~2028.04.06	5.38~5.50		USD 800,000		1,050,240
FY-22	2022.10.06~2022.11.01	2032.10.06	5.16		HKD 2,350,000		393,578
FY-23	2023.06.07	2030.06.07	4.51		HKD 1,037,000		173,677

							15,169,546
Less: discount on foreign debt securities							(117,602	)
Add: premium on foreign debt securities							478
Less: current portion of foreign debt securities							(2,405,951	)
Add: current portion of discount on foreign debt securities							3,088

							12,649,559

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

23.	Borrowings and Debt Securities, Continued

(6)	Foreign debt securities as of June 30, 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 six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023			June 30, 2022
Beginning balance		120,605,365			80,529,513
Cash flow		10,236,406			17,660,538
Effect of exchange rate fluctuations		632,588			1,106,835
Others		(40,870	)		(19,572	)

Ending balance		131,433,489			99,277,314

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 69,089 million and 124,338 million respectively, as expense for the six-month periods ended June 30, 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 1,168 million and 972 million respectively, as expense for the six-month periods ended June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Acquisition cost		Accumulated depreciation			Book value
Land		920,476		(253,505	)		666,971
Buildings		180,249		(84,866	)		95,383
Structures		30,587		(7,834	)		22,753
Machinery		25,233		(17,436	)		7,797
Ships		4,158,271		(1,701,846	)		2,456,425
Vehicles		52,060		(29,039	)		23,021
Others (*)		650,738		(393,408	)		257,330

		6,017,614		(2,487,934	)		3,529,680

(*)	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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

24.	Lease, Continued

(3)	Changes in right-of-use assets for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
Land		661,799		1,805		(29,444	)		—			32,811			666,971
Buildings		74,856		16,383		(17,258	)		(639	)		22,041			95,383
Structures		23,965		15		(945	)		(265	)		(17	)		22,753
Machinery		835		—		(47	)		—			7,009			7,797
Ships		2,596,863		97,859		(191,557	)		—			(46,740	)		2,456,425
Vehicles		14,716		11,405		(4,641	)		(995	)		2,536			23,021
Others		338,091		9,798		(23,753	)		(232	)		(66,574	)		257,330

		3,711,125		137,265		(267,645	)		(2,131	)		(48,934	)		3,529,680


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

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

24.	Lease, Continued

(4)	Lease liabilities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Less than 1 year		612,172			639,756
1 ~ 5 years		2,035,182			2,047,584
More than 5 years		1,881,065			1,925,012

		4,528,419			4,612,352
Less: discount		(476,358	)		(449,209	)

Present value of lease payment		4,052,061			4,163,143

(5)	The details of the liquidity classification of lease liabilities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Current lease liabilities		593,918		614,037
Non-current lease liabilities		3,458,143		3,549,106

		4,052,061		4,163,143

(6)	Changes in lease liabilities for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance		Increase		Decrease			Interest expenses		Others (*)		Ending balance
Lease liabilities		4,163,143		127,588		(356,082	)		41,342		76,070		4,052,061

(*)	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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

24.	Lease, Continued

(7)	Details of expense relating to lease contracts as lessee for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Depreciation of right-of-use assets		133,167		267,645		135,429		270,472
Interest expenses of lease liabilities		20,694		41,342		24,617		46,981
Lease expenses for short-term leases		26,134		69,089		68,517		124,338
Lease expenses for leases of low-value assets		564		1,168		468		972
Variable lease payments		8,932		11,321		14,353		54,695

		189,491		390,565		243,384		497,458

(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 437,660 million and 539,325 million, for the six-month periods ended June 30, 2023 and 2022, respectively.

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 26 energy storage system installation projects and 155 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 and six-month periods ended June 30, 2023 and 2022 are as follows:

In millions of won

June 30, 2023

June 30, 2022

Three-month
period ended

Six-month
period ended

Three-month
period ended

Six-month
period ended

Finance income on the net investment in the lease

30,111

59,090

30,784

60,388

(3)	Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Less than 1 year		187,885			181,930
1 ~ 2 years		178,970			169,693
2 ~ 3 years		173,944			166,787
3 ~ 4 years		176,138			166,196
4 ~ 5 years		169,308			166,965
More than 5 years		1,502,276			1,527,093

		2,388,521			2,378,664
Less: unearned finance income		(1,128,609	)		(1,139,274	)

Net investment in the lease (*)		1,259,912			1,239,390

(*)	Including the present value of unguaranteed residual value amounting to 24,833 million and 22,910 million, as of June 30, 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 17.17% per year as of June 30, 2023. (prior year : 0.00%~17.08%)

(4)	Changes in the allowance for doubtful accounts of finance lease receivables for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		4,505			768
Bad debt expense		—			3,737
Reversal of allowance of doubtful accounts		(128	)		—

Ending balance		4,377			4,505

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

25.	Employment Benefits

(1)	Employment benefit obligations as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Net defined benefit asset		118,342		198,626
Net defined benefit obligations		940,057		825,927
Other long-term employee benefit obligations		2,617		2,794

(2)	Principal assumptions used for actuarial valuation as of June 30, 2023 and December 31, 2022 are as follows:


	June 30, 2023			December 31, 2022
Discount rate		4.72%~6.07	%		5.16%~5.19	%
Future salary and benefit levels		4.56	%		4.55	%
Weighted average duration		9.02 years			8.84 years

(3)	Details of expense relating to defined benefit plans for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023						June 30, 2022
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Current service cost		90,800			181,066			120,927			241,512
Interest cost		46,494			92,310			28,207			55,656
Expected return on plan assets		(38,764	)		(77,548	)		(17,472	)		(35,136	)

		98,530			195,828			131,662			262,032

Expenses described above are recognized in those items below in the consolidated financial statements.


In millions of won	June 30, 2023				June 30, 2022
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Cost of sales		70,555		139,241		98,423		195,791
Selling and administrative expenses		17,153		35,486		19,727		39,243
Others (Construction-in-progress and others)		10,822		21,101		13,512		26,998

		98,530		195,828		131,662		262,032

In addition, for the six-month periods ended June 30, 2023 and 2022, employee benefit obligations expenses of 46,679 million and 51,203 million, respectively, are recognized as cost of sales, and 6,408 million and 12,548 million, respectively, are recognized as selling and administrative expenses, and 7,612 million and 7,018 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

June 30, 2023 and 2022 (Unaudited)

25.	Employment Benefits, Continued

(4)	Details of defined benefit obligations as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Present value of defined benefit obligation from funded plans		3,958,825			3,776,715
Fair value of plan assets		(3,137,110	)		(3,149,414	)

Net liabilities incurred from defined benefit plans		821,715			627,301

(5)	Changes in the present value of defined benefit obligations for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		3,776,715			4,564,417
Current service cost		181,066			496,722
Interest cost		92,310			116,256
Remeasurement component		214,686			(1,012,727	)
Past service cost		—			125
Actual payments		(306,028	)		(388,105	)
Others		76			27

Ending balance		3,958,825			3,776,715

(6)	Changes in the fair value of plan assets for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		3,149,414			2,909,547
Expected return		77,548			73,484
Remeasurement component		4,529			(11,609	)
Contributions by the employers		1,477			347,778
Actual payments		(95,858	)		(169,786	)

Ending balance		3,137,110			3,149,414

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

25.	Employment Benefits, Continued

(7)	Details of the fair value of plan assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Equity instruments		231,805		171,301
Debt instruments		636,685		854,640
Bank deposits		538,052		590,103
Others (*)		1,730,568		1,533,370

		3,137,110		3,149,414

(*)	‘Others’ consist of various financial assets managed by external asset management companies.

For the six-month period ended June 30, 2023 and for the year ended December 31, 2022, actual returns on plan assets amounted to 82,077 million and 61,875 million, respectively.

(8)	Remeasurement component recognized in other comprehensive income (loss) for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Actuarial gain from changes in financial assumptions		94,994			(967,366	)
Experience adjustments, etc.		119,692			(45,361	)
Expected loss (return)		(4,529	)		11,609

		210,157			(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 149,152 million and gain on accumulated remeasurement component amounting to 614,805 million have been recognized as other comprehensive income or loss as of June 30, 2023 and December 31, 2022, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

26.	Provisions

(1)	Provisions as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
In millions of won	Current		Non-current		Current		Non-current
Employment benefits
Provisions for employment benefits		937,724		—		1,045,058		—
Litigation
Litigation provisions		27,052		173,348		26,974		154,205
Decommissioning cost
Nuclear plants		—		23,289,328		—		23,035,427
Spent fuel		476,655		948,984		415,890		1,011,028
Radioactive waste		88,133		1,878,980		94,158		1,895,849
PCBs		—		82,741		—		88,359
Other recovery provisions		—		32,832		—		32,770
Others
Power plant regional support program		173,700		—		144,504		—
Transmission regional support program		173,973		—		239,235		—
Provisions for financial guarantee		24,833		36,118		22,895		44,345
Provisions for RPS		139,187		—		24,339		—
Provisions for greenhouse gas emissions obligations		291,237		—		298,876		—
Others		171,352		70,539		115,122		102,659

		2,503,846		26,512,870		2,427,051		26,364,642

(2)	Changes in provisions for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
Employment benefits
Provisions for employment benefits		1,045,058		550,996		(480,738	)		(177,592	)		—			937,724
Litigation
Litigation provisions		181,179		60,751		(18,440	)		(23,090	)		—			200,400
Decommissioning cost
Nuclear plants		23,035,427		277,372		(23,446	)		—			(25	)		23,289,328
Spent fuel		1,426,918		235,434		(236,713	)		—			—			1,425,639
Radioactive waste		1,990,007		45,224		(68,118	)		—			—			1,967,113
PCBs		88,359		850		(6,468	)		—			—			82,741
Other recovery provisions		32,770		480		(501	)		—			83			32,832
Others
Power plant regional support program		144,504		51,814		(22,618	)		—			—			173,700
Transmission regional support program		239,235		8,122		(73,384	)		—			—			173,973
Provisions for financial guarantee		67,240		3,734		(9,530	)		(485	)		(8	)		60,951
Provisions for RPS		24,339		321,494		(206,646	)		—			—			139,187
Provisions for greenhouse gas emissions obligations		298,876		42,773		—			(50,412	)		—			291,237
Others		217,781		40,736		(11,238	)		(4,041	)		(1,347	)		241,891

		28,791,693		1,639,780		(1,157,840	)		(255,620	)		(1,297	)		29,016,716

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

26.	Provisions, Continued

(2)	Changes in provisions for the six-month period ended June 30, 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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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

27.	Government Grants

(1)	Government grants as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Land		(27,404	)		(27,405	)
Buildings		(47,906	)		(50,437	)
Structures		(160,429	)		(165,608	)
Machinery		(118,468	)		(127,126	)
Vehicles		(2,140	)		(2,045	)
Equipment		(6,396	)		(6,608	)
Tools		(80	)		(99	)
Construction-in-progress		(156,706	)		(135,926	)
Investment properties		(25	)		(21	)
Software		(156	)		(174	)
Development expenditures		(2,798	)		(3,477	)
Intangible assets under development		(2,303	)		(2,108	)
Other intangible assets		(369	)		(67	)

		(525,180	)		(521,101	)

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

27.	Government Grants, Continued

(2)	Changes in government grants for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023
	Beginning balance			Receipt			Acquisition		Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash		—			(22,907	)		—		—		—		22,907			—
Land		(27,405	)		—			—		—		1		—			(27,404	)
Buildings		(50,437	)		—			—		2,526		—		5			(47,906	)
Structures		(165,608	)		—			—		4,798		686		(305	)		(160,429	)
Machinery		(127,126	)		—			—		8,475		140		43			(118,468	)
Vehicles		(2,045	)		—			—		433		—		(528	)		(2,140	)
Equipment		(6,608	)		—			—		986		—		(774	)		(6,396	)
Tools		(99	)		—			—		19		—		—			(80	)
Construction-in-progress		(135,926	)		—			493		—		—		(21,273	)		(156,706	)
Investment properties		(21	)		—			—		—		—		(4	)		(25	)
Software		(174	)		—			—		40		—		(22	)		(156	)
Development expenditures		(3,477	)		—			—		679		—		—			(2,798	)
Intangible assets under development		(2,108	)		—			—		—		—		(195	)		(2,303	)
Other intangible assets		(67	)		—			—		47		—		(349	)		(369	)

		(521,101	)		(22,907	)		493		18,003		827		(495	)		(525,180	)


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

June 30, 2023 and 2022 (Unaudited)

28.	Deferred Revenue

Deferred revenue for the six-month period ended June 30, 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	June 30, 2023			December 31, 2022
Beginning balance		10,974,845			10,356,555
Increase		509,907			1,330,129
Recognized as revenue		(365,543	)		(711,839	)

Ending balance		11,119,209			10,974,845

29.	Non-financial Liabilities

Non-financial liabilities as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Current		Non-current		Current		Non-current
Advance received		5,039,318		317,147		4,544,206		284,618
Unearned revenue		46,330		2,961		86,584		7,200
Deferred revenue		711,178		10,408,031		702,430		10,272,415
Withholdings		442,752		2,502		207,217		2,408
Others		1,468,532		97,628		1,433,940		96,020

		7,708,110		10,828,269		6,974,377		10,662,661

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

30.	Contributed Capital

(1)	Details of share capital as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won except share information
	June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


Number of shares	June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Share premium		843,758		843,758

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

31.	Retained Earnings and Dividends Paid

(1)	Details of retained earnings as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Legal reserve (*)		1,604,910		1,604,910
Voluntary reserves		2,812,312		27,782,969
Retained earnings (Undisposed deficit) before appropriations		10,040,143		(7,956,579	)

Retained earnings		14,457,365		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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Reserve for investment on social overhead capital		2,272,312		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

		2,812,312		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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		21,431,300			45,258,244
Loss for the year attributed to owners of the controlling company		(6,849,287	)		(24,466,853	)
Changes in equity method retained earnings		(794	)		12,305
Remeasurements of defined benefit liability, net of tax		(123,854	)		626,769
Additional paid-in capital and others		—			835

Ending balance		14,457,365			21,431,300

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

31.	Retained Earnings and Dividends Paid, Continued

(4)	Dividends paid for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:

In millions of won

June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		16,275			3,970
Changes		(794	)		12,305

Ending balance		15,481			16,275

(6)	Changes in remeasurement components related to defined benefit liability for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Beginning balance		614,805			98,844
Changes		(197,488	)		964,791
Income tax effect		73,634			(338,022	)
Transfer to reserve for business expansion		(341,799	)		(110,808	)

Ending balance		149,152			614,805

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

32.	Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interests) as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won
Issuer	Hybrid bond	Issued date		Maturity		Yield (%)		June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Other capital surplus		1,284,416		1,268,569
Accumulated other comprehensive income		632,873		496,976
Other equity		13,294,972		13,294,973

		15,212,261		15,060,518

(2)	Changes in other capital surplus for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 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		—		12			12			—		39,641			39,641
Transactions between consolidated entities		—		15,882			15,882			—		(1,584	)		(1,584	)

Ending balance		387,524		896,892			1,284,416			387,524		881,045			1,268,569

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June 30, 2023 and 2022 (Unaudited)

33.	Other Components of Equity, Continued

(3)	Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 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		(68,309	)		—		—			—			(68,309	)
Shares of other comprehensive income of associates and joint ventures, net of tax		—			201,726		—			—			201,726
Foreign currency translation of foreign operations, net of tax		—			—		15,587			—			15,587
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—		—			(13,107	)		(13,107	)

Ending balance		(56,799	)		1,022,465		(290,033	)		(42,760	)		632,873


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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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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June 30, 2023 and 2022 (Unaudited)

34.

Sales

Details of sales for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023
	Domestic				Overseas				Total
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
[Type of goods and services]
Sales of goods		18,991,951		40,056,135		96,473		175,794		19,088,424		40,231,929
Electricity		18,361,688		38,620,751		—		—		18,361,688		38,620,751
Heat supply		41,561		311,064		—		—		41,561		311,064
Others		588,702		1,124,320		96,473		175,794		685,175		1,300,114
Sales related to rendering of services		94,812		188,815		61,298		116,457		156,110		305,272
Sales related to construction services		51,044		87,944		143,209		225,829		194,253		313,773
Revenue related to transfer of assets from customers		183,708		365,543		—		—		183,708		365,543

		19,321,515		40,698,437		300,980		518,080		19,622,495		41,216,517

[Timing of revenue recognition]
Performance obligations satisfied at a point in time		18,991,951		40,056,135		96,473		175,794		19,088,424		40,231,929
Performance obligations satisfied over time		329,564		642,302		204,507		342,286		534,071		984,588

		19,321,515		40,698,437		300,980		518,080		19,622,495		41,216,517


In millions of won	June 30, 2022
	Domestic				Overseas				Total
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
[Type of goods and services]
Sales of goods		14,715,159		30,629,009		174,590		298,536		14,889,749		30,927,545
Electricity		14,090,198		29,468,556		—		—		14,090,198		29,468,556
Heat supply		63,121		295,769		—		—		63,121		295,769
Others		561,840		864,684		174,590		298,536		736,430		1,163,220
Sales related to rendering of services		86,309		150,100		86,192		133,474		172,501		283,574
Sales related to construction services		53,466		85,413		235,199		344,046		288,665		429,459
Revenue related to transfer of assets from customers		177,120		351,527		—		—		177,120		351,527

		15,032,054		31,216,049		495,981		776,056		15,528,035		31,992,105

[Timing of revenue recognition]
Performance obligations satisfied at a point in time		14,715,159		30,629,009		174,590		298,536		14,889,749		30,927,545
Performance obligations satisfied over time		316,895		587,040		321,391		477,520		638,286		1,064,560

		15,032,054		31,216,049		495,981		776,056		15,528,035		31,992,105

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

35.	Selling and Administrative Expenses

Selling and administrative expenses for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended
Salaries		228,621		506,895		277,279			548,138
Retirement benefit expense		20,123		41,894		24,710			51,791
Welfare and benefit expense		36,404		71,536		38,064			72,240
Insurance expense		6,389		14,449		4,535			11,787
Depreciation		64,134		127,410		57,336			110,428
Amortization of intangible assets		23,686		44,696		22,558			41,584
Bad debt expense (reversal of bad debt expense)		28,006		27,185		(10,343	)		(1,927	)
Commission		100,809		203,160		117,417			200,174
Advertising expense		6,779		22,080		5,317			18,970
Training expense		1,877		3,700		1,618			2,652
Vehicle maintenance expense		2,435		4,679		2,894			5,024
Publishing expense		660		1,517		808			1,688
Business promotion expense		611		1,397		839			1,611
Rent expense		9,878		20,560		9,241			18,396
Telecommunication expense		1,968		4,156		2,141			4,307
Transportation expense		218		580		263			504
Taxes and dues		74,123		91,408		83,341			93,443
Expendable supplies expense		1,604		3,664		2,606			5,138
Water, light and heating expense		3,756		9,329		4,541			9,687
Repairs and maintenance expense		32,925		59,448		42,880			64,492
Ordinary development expense		42,871		83,866		45,171			87,491
Travel expense		4,029		8,285		4,550			8,257
Clothing expense		913		1,133		1,760			1,906
Survey and analysis expense		292		544		300			514
Membership fee		416		963		522			1,122
Others		32,303		62,883		29,047			58,132

		725,830		1,417,417		769,395			1,417,549

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June 30, 2023 and 2022 (Unaudited)

36.	Other Income and Expenses

(1)	Other income for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
Reversal of other provisions		12,747		23,333		1,915		4,271
Gains on government grants		72		132		70		145
Gains on assets contributed		13,772		15,794		104		255
Gains on liabilities exempted		573		675		1,002		1,160
Compensation and reparations revenue		16,603		35,550		14,801		30,476
Revenue from research contracts		1,414		2,130		4,411		6,237
Rental income		55,923		107,758		51,918		102,740
Others		33,880		39,348		24,685		28,910

		134,984		224,720		98,906		174,194

(2)	Other expenses for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
Compensation and indemnification expense		3		3		11		11
Accretion expenses of other provisions		126		471		119		642
Depreciation expenses on investment properties		124		247		125		226
Depreciation expenses on idle assets		916		1,830		917		1,807
Other bad debt expense		5,966		8,584		3,225		5,632
Donations		91,295		101,424		20,487		30,000
Others		9,959		16,900		16,678		52,487

		108,389		129,459		41,562		90,805

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June 30, 2023 and 2022 (Unaudited)

37.	Other Gains (Losses)

Composition of other gains (losses) for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023						June 30, 2022
	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Other gains
Gains on disposal of property, plant and equipment		7,127			13,694			70,935			77,975
Gains on disposal of intangible assets		—			—			132			132
Gains on foreign currency translation		—			12,226			22,684			34,169
Gains on foreign currency transactions		19,410			67,344			25,023			37,121
Gains on insurance proceeds		—			—			5,154			5,154
Others		67,079			168,848			89,248			145,544

Other losses
Losses on disposal of property, plant and equipment		(22,853	)		(34,157	)		(21,794	)		(51,770	)
Losses on disposal of intangible assets		(13	)		(70	)		(20	)		(39	)
Impairment loss on property, plant and equipment		(4,146	)		(6,167	)		—			—
Impairment loss on intangible assets		—			(283	)		(14	)		(14	)
Losses on foreign currency translation		(5,437	)		(10,364	)		(23,489	)		(26,336	)
Losses on foreign currency transactions		(27,402	)		(101,806	)		(62,162	)		(88,124	)
Others		(44,091	)		(106,327	)		(45,719	)		(83,681	)

		(10,326	)		2,938			59,978			50,131

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June 30, 2023 and 2022 (Unaudited)

38.	Finance Income

Finance income for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
Interest income		100,961		203,907		77,002		138,271
Dividends income		11,223		11,412		6,823		15,278
Gains on disposal of financial assets		4,293		6,569		167		1,107
Gains on valuation of financial assets at fair value through profit or loss		—		16,822		722		2,334
Gains on valuation of derivatives		126,181		530,004		688,158		827,682
Gains on transaction of derivatives		56,278		132,674		96,851		133,213
Gains on foreign currency translation		11,317		64,776		94,281		123,934
Gains on foreign currency transactions		9,919		15,410		12,979		16,569
Other finance income		701		1,384		118		319

		320,873		982,958		977,101		1,258,707

39.	Finance Expenses

Finance expenses for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023				June 30, 2022
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
Interest expense		1,109,135		2,157,213		639,744		1,203,655
Losses on sale of financial assets		—		—		673		907
Losses on valuation of financial assets at fair value through profit or loss		1,903		2,004		2,700		13,838
Losses on valuation of derivatives		—		35,971		—		19,947
Losses on transaction of derivatives		12,786		61,394		17,222		28,769
Losses on foreign currency translation		118,313		640,148		934,843		1,240,706
Losses on foreign currency transactions		21,733		29,324		68,621		78,685
Losses on repayment of financial liabilities		—		—		—		15
Others		28		531		681		1,496

		1,263,898		2,926,585		1,664,484		2,588,018

Capitalization rates for the six-month periods ended June 30, 2023 and 2022 are 2.50%~5.29% and 2.22%~2.88%, respectively.

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June 30, 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 and previous periods because income tax benefit occurred for the six-month periods ended June 30, 2023 and 2022.

41.	Assets Held-for-Sale

Assets held-for-sale as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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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June 30, 2023 and 2022 (Unaudited)

42.	Expenses Classified by Nature

Expenses classified by nature for the six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 2023
	Selling and administrative expenses		Cost of sales		Total
Raw materials used		—		15,279,043		15,279,043
Power purchase		—		21,088,692		21,088,692
Salaries		506,895		2,081,415		2,588,310
Retirement benefit expense		41,894		185,920		227,814
Welfare and benefit expense		71,536		265,924		337,460
Insurance expense		14,449		64,041		78,490
Depreciation		127,410		6,285,503		6,412,913
Amortization of intangible assets		44,696		39,640		84,336
Bad debt expense		27,185		—		27,185
Commission		203,160		184,967		388,127
Advertising expense		22,080		4,177		26,257
Training expense		3,700		5,952		9,652
Vehicle maintenance expense		4,679		4,298		8,977
Publishing expense		1,517		1,360		2,877
Business promotion expense		1,397		1,314		2,711
Rent expense		20,560		76,431		96,991
Telecommunication expense		4,156		5,100		9,256
Transportation expense		580		56,991		57,571
Taxes and dues		91,408		346,325		437,733
Expendable supplies expense		3,664		20,832		24,496
Water, light and heating expense		9,329		22,137		31,466
Repairs and maintenance expense		59,448		1,219,815		1,279,263
Ordinary development expense		83,866		236,140		320,006
Travel expense		8,285		41,225		49,510
Clothing expense		1,133		3,737		4,870
Survey and analysis expense		544		1,925		2,469
Membership fee		963		12,329		13,292
Others		62,883		713,824		776,707

		1,417,417		48,249,057		49,666,474

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

42.	Expenses Classified by Nature, Continued

Expenses classified by nature for the six-month periods ended June 30, 2023 and 2022 are as follows, continued:


In millions of won	June 30, 2022
	Selling and administrative expenses			Cost of sales		Total
Raw materials used		—			14,666,067		14,666,067
Power purchase		—			18,996,872		18,996,872
Salaries		548,138			2,114,045		2,662,183
Retirement benefit expense		51,791			246,994		298,785
Welfare and benefit expense		72,240			257,982		330,222
Insurance expense		11,787			52,155		63,942
Depreciation		110,428			6,055,383		6,165,811
Amortization of intangible assets		41,584			36,049		77,633
Bad debt expense (reversal of bad debt expense)		(1,927	)		—		(1,927	)
Commission		200,174			148,451		348,625
Advertising expense		18,970			4,871		23,841
Training expense		2,652			4,879		7,531
Vehicle maintenance expense		5,024			4,829		9,853
Publishing expense		1,688			1,360		3,048
Business promotion expense		1,611			1,802		3,413
Rent expense		18,396			57,535		75,931
Telecommunication expense		4,307			5,066		9,373
Transportation expense		504			47,324		47,828
Taxes and dues		93,443			321,245		414,688
Expendable supplies expense		5,138			21,260		26,398
Water, light and heating expense		9,687			33,308		42,995
Repairs and maintenance expense		64,492			1,066,980		1,131,472
Ordinary development expense		87,491			225,978		313,469
Travel expense		8,257			40,075		48,332
Clothing expense		1,906			2,349		4,255
Survey and analysis expense		514			2,033		2,547
Membership fee		1,122			11,345		12,467
Others		58,132			451,589		509,721

		1,417,549			44,877,826		46,295,375

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

43.	Loss Per Share

(1)	Basic loss per share for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In won	June 30, 2023						June 30, 2022
Type	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Basic loss per share		(2,964	)		(10,669	)		(7,535	)		(16,808	)

(2)	Loss for the periods and weighted average number of common shares used in the calculation of basic loss per share for the three and six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won except number of shares	June 30, 2023						June 30, 2022
Type	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Loss attributable to controlling interest		(1,902,784	)		(6,849,287	)		(4,837,193	)		(10,790,049	)
Loss used in the calculation of total basic earnings per share		(1,902,784	)		(6,849,287	)		(4,837,193	)		(10,790,049	)
Weighted average number of common shares		641,964,077			641,964,077			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 and six-month periods ended June 30, 2023 and 2022 are as follows:


In number of shares	June 30, 2023				June 30, 2022
Type	Three- Month period ended		Six- month period ended		Three- month period ended		Six- month period ended
The number of common shares issued at beginning of the year		641,964,077		641,964,077		641,964,077		641,964,077
Weighted average number of common shares		641,964,077		641,964,077		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 and six-month periods ended June 30, 2023 and 2022.

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June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023			December 31, 2022
Total borrowings and debt securities		131,433,489			120,605,365
Cash and cash equivalents		2,850,902			3,234,780

Net borrowings and debt securities		128,582,587			117,370,585

Total equity		35,072,888			42,000,256

Debt to equity ratio		366.62	%		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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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023		December 31, 2022
Cash and cash equivalents		2,850,902		3,234,780
Financial assets at fair value through profit or loss (*1)		1,552,572		3,610,408
Derivative assets (trading)		892,875		693,072
Financial assets at fair value through other comprehensive income (debt securities)		4,609		529
Financial assets at amortized cost		28,723		26,998
Loans		1,011,622		1,013,371
Long-term/short-term financial instruments		1,306,539		1,353,080
Derivative assets (applying hedge accounting)		397,651		324,952
Trade and other receivables		12,212,874		12,614,902
Financial guarantee contracts (*2)		3,924,900		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.

For the six-month period ended June 30, 2023, 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

June 30, 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

①

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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won		June 30, 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		372,192			(326,893	)		321,930			(283,658	)
Discount rate	Increase (decrease) in defined benefit obligation		(317,278	)		370,182			(289,229	)		337,033

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the six-month periods ended June 30, 2023 and 2022 are 14,930 million and 13,849 million, respectively.

②

Provisions

Changes in provisions due to movements in underlying assumptions as of June 30, 2023 and December 31, 2022 are as follows:


Type	Accounts	June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won		June 30, 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		(125	)		125			(169	)		169
	Nuclear plants		(469,474	)		486,128			(474,432	)		491,360
	Spent fuel		(54,282	)		56,402			(54,330	)		56,453
	Radioactive waste		(14,659	)		14,822			(15,089	)		15,260
Inflation rate	PCBs		125			(125	)		169			(169	)
	Nuclear plants		521,599			(504,384	)		515,262			(498,258	)
	Spent fuel		57,217			(55,141	)		57,269			(55,191	)
	Radioactive waste		14,665			(14,526	)		14,190			(14,056	)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

44.	Risk Management, Continued

(2)	Financial risk management, continued

Management judgment effected by uncertainties in underlying assumptions

①

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 June 30, 2023 and December 31, 2022 are as follows:


In thousands of foreign currencies	Assets				Liabilities
Type	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
AED		29,412		5,610		18,652		25,597
AUD		4,447		4,448		823,173		299,663
BDT		2,392		7,514		—		—
BWP		816		824		—		—
EGP		—		—		—		1,162
CAD		89		89		—		595
CHF		—		—		500,149		500,158
CZK		—		—		—		153
EUR		673		1,976		77,997		41,073
GBP		13		—		—		31
HKD		—		—		5,113,894		4,014,446
IDR		17,004,222		598,697		1,567,087		1,323,840
INR		1,557,542		1,592,380		361,312		312,978
JOD		544		1,146		535		14
JPY		958,403		568,263		898,088		1,719,846
KZT		1,510		1,510		—		—
MGA		1,164,833		2,856,045		722,302		347,403
MMK		199,518		199,518		—		—
MYR		38,957		38,177		—		—
PHP		97,663		68,592		6,666		7,493
PKR		2,780,601		533,816		10,622		219,341
RUB		—		—		—		2,881
SAR		1,373		1,713		20		9,710
SEK		—		—		449,222		449,211
SGD		415		—		1,202		—
THB		—		—		—		389
USD		1,258,142		1,484,614		13,059,832		13,599,643
UYU		160,198		128,674		2,398		3,106
VND		1,320,044		1,184,670		—		4,495
ZAR		96,980		43,461		523		—

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023					December 31, 2022
Type	10% Increase			10% Decrease		10% Increase			10% Decrease
Increase (decrease) of profit before income tax		(1,789,265	)		1,789,265		(1,703,053	)		1,703,053
Increase (decrease) of shareholder’s equity (*)		(1,789,265	)		1,789,265		(1,703,053	)		1,703,053

(*)	The effect on the shareholder’s 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 June 30, 2023 and December 31, 2022.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 item. As of June 30, 2023, the hedging instrument (cross-currency swap) hedges the risk of the hedged item(repayment of foreign debt securities and others).

②

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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won
Type	June 30, 2023		December 31, 2022
Short-term borrowings		3,052,512		3,154,972
Long-term borrowings		7,462,526		5,388,073
Debt securities		272,281		269,101

		10,787,319		8,812,146

A sensitivity analysis on the Group’s borrowings and debt securities assuming a 1%p increase and decrease in interest rates for the six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 2023					December 31, 2022
Type	1%p Increase			1%p Decrease		1%p Increase			1%p Decrease
Increase (decrease) of profit before income tax		(53,937	)		53,937		(88,121	)		88,121
Increase (decrease) of shareholder’s equity (*)		(53,937	)		53,937		(88,121	)		88,121

(*)	The effect on the shareholder’s 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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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

44.	Risk Management, Continued

(2)	Financial risk management, continued

③

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 six-month periods ended June 30, 2023 and 2022 is as follows:


In millions of won	June 30, 2023					June 30, 2022
Type	1% Increase		1% Decrease			1% Increase		1% Decrease
Increase (decrease) of profit before income tax		386,208		(386,208	)		294,686		(294,686	)
Increase (decrease) of shareholder’s equity (*)		386,208		(386,208	)		294,686		(294,686	)

(*)	The effect on the shareholder’s 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 June 30, 2023 and December 31, 2022 in detail are as follows:


In millions of won	June 30, 2023
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities		31,842,523		37,519,987		43,850,099		36,436,676		149,649,285
Lease liabilities		612,172		638,796		1,396,385		1,881,066		4,528,419
Trade and other payables (*1)		8,948,529		391,037		1,069,245		663,738		11,072,549
Financial guarantee contracts (*2)		53,185		18,786		3,793,174		59,755		3,924,900

		41,456,409		38,568,606		50,108,903		39,041,235		169,175,153


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 June 30, 2023 and December 31, 2022 are 60,951 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

June 30, 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 June 30, 2023 and December 31, 2022 in detail are as follows:


In millions of won	June 30, 2023
Type	Less than 1 year		1~5 Years		More than 5 years		Other (*)		Total
Cash and cash equivalents		2,850,902		—		—		—		2,850,902
Financial assets at fair value through other comprehensive income		—		—		—		459,375		459,375
Financial assets at amortized cost		18,452		1,489		8,782		—		28,723
Loans and receivables		110,158		393,455		542,947		—		1,046,560
Long-term/short-term financial instruments		580,514		27,708		24		698,293		1,306,539
Financial assets at fair value through profit or loss		1,138,961		797		3,756		515,394		1,658,908
Trade and other receivables		9,958,362		1,021,770		1,250,533		—		12,230,665

		14,657,349		1,445,219		1,806,042		1,673,062		19,581,672


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

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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		(12,499	)		267			(115,940	)		(38,497	)		(166,669	)
- Hedging		—			(784	)		—			(6,328	)		(7,112	)

		(12,499	)		(517	)		(115,940	)		(44,825	)		(173,781	)


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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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		459,375		459,375		502,829		502,829
Derivative assets (trading)		892,875		892,875		693,072		693,072
Derivative assets (applying hedge accounting)		397,651		397,651		324,952		324,952
Financial assets at fair value through profit or loss		1,658,908		1,658,908		3,709,508		3,709,508

		3,408,809		3,408,809		5,230,361		5,230,361

Assets carried at amortized cost
Financial assets at amortized cost		28,723		28,723		26,998		26,998
Loans and receivables		1,011,622		1,011,622		1,013,371		1,013,371
Trade and other receivables		12,212,874		12,212,874		12,614,902		12,614,902
Long-term financial instruments		726,025		726,025		686,322		686,322
Short-term financial instruments		580,514		580,514		666,758		666,758
Cash and cash equivalents		2,850,902		2,850,902		3,234,780		3,234,780

		17,410,660		17,410,660		18,243,131		18,243,131

Liabilities recognized at fair value
Derivative liabilities (trading)		295,141		295,141		407,246		407,246
Derivative liabilities (applying hedge accounting)		7,112		7,112		25,505		25,505

		302,253		302,253		432,751		432,751

Liabilities carried at amortized cost
Secured borrowings		137,808		137,808		102,368		102,368
Unsecured bond		114,608,664		109,586,074		105,185,189		96,846,056
Lease liabilities		4,052,061		4,052,061		4,163,143		4,163,143
Unsecured borrowings		16,667,417		16,628,261		15,282,193		15,280,693
Trade and other payables (*)		11,072,549		11,072,549		13,459,320		13,459,320
Overdraft		19,600		19,600		35,615		35,615

		146,558,099		141,496,353		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

June 30, 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 June 30, 2023 and December 31, 2022 are as follows:


Type	June 30, 2023		December 31, 2022
Derivatives		0.93%~9.97%		0.60%~7.93%
Borrowings and debt securities		0.96%~5.86%		0.75%~5.84%
Leases		0.00%~17.17%		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 June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		251,287		—		208,088		459,375
Derivative assets		—		1,290,526		—		1,290,526
Financial assets at fair value through profit or loss		—		1,652,861		6,047		1,658,908

		251,287		2,943,387		214,135		3,408,809

Financial liabilities at fair value
Derivative liabilities		—		302,253		—		302,253


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

June 30, 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 six-month period ended June 30, 2023 and for the year ended December 31, 2022 are as follows:


In millions of won	June 30, 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	)		118			—			—		6,047
Financial assets at fair value through other comprehensive income Unlisted securities		202,243		1,060		—			(162	)		(31	)		369		203,479
Debt securities		529		4,080		—			—			—			—		4,609


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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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 June 30, 2023 are as follows:


In millions of won

Type	Amounts
Less than 1 year		32,926
1 ~ 2 years		32,852
2 ~ 3 years		32,892
Over 3 years		548,183

		646,853

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties

(1)	Related parties of the Group as of June 30, 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 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, KOWEPO Holding Limited

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(1)	Related parties of the Group as of June 30, 2023 are as follows, continued:


Type		Related party
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.

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., 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, Jeonju Bio Green Energy Co., Ltd.

Others (2 others)		Korea Development Bank, KEPCO Lebanon SARL

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won			Sales and others
Company name	Transaction type		June 30, 2023		June 30, 2022
<Associates>
Korea Gas Corporation		Electricity sales		68,345		100,911
Goseong Green Power Co., Ltd.		Fuel sales		430,084		493,811
Dongducheon Dream Power Co., Ltd.		Electricity sales		7,916		4,613
S-Power Co., Ltd.		Service		2,441		2,162
GS Donghae Electric Power Co., Ltd.		Electricity sales		12,285		2,509
Shin Pyeongtaek Power Co., Ltd.		Electricity sales		38,899		11,978
PT. Bayan Resources TBK		Others		213,968		247,265
Gangneung Eco Power Co., Ltd.		Fuel sales		525,375		9,803
Daeryun Power Co., Ltd.		Electricity sales		1,540		907
Korea Electric Power Industrial Development Co., Ltd.		Service		8,648		5,898
Korea Power Exchange		Service		10,868		10,438
Daewon Green Energy Co., Ltd.		Electricity sales		86		39
Gangwon Wind Power Co., Ltd.		Electricity sales		2,349		1,474
Busan Green Energy Co., Ltd.		Electricity sales		4,274		9
Hyundai Eco Energy Co., Ltd.		Electricity sales		1,012		93
Taebaek Gadeoksan Wind Power Co., Ltd.		Electricity sales		2,376		1,803
Saemangeum Sebit Power Plant Co., Ltd.		Electricity sales		1,095		489
Noeul Green Energy Co., Ltd.		Electricity sales		6,737		15
Muan Sunshine Solar Power Plant Co., Ltd.		Electricity sales		345		9
Anjwa Smart Farm & Solar City Co., Ltd.		Electricity sales		1,986		526
Muan Solar Park Co., Ltd.		Electricity sales		2,864		782
PT. Cirebon Electric Power		Others		10,209		14,046
Jeju Gimnyeong Wind Power Co., Ltd.		Electricity sales		112		156
Samcheok Eco Materials Co., Ltd.		Electricity sales		367		272
Others (Hyundai Green Power Co., Ltd. and 39 others)		Electricity sales		29,844		18,924

<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales		1,223		1,172
Daegu Green Power Co., Ltd.		Electricity sales		797		560
Daesan Green Energy Co., Ltd.		Electricity sales		428		155
Cheongju Eco Park Co., Ltd.		Electricity sales		42		38
Seokmun Energy Co., Ltd.		Service		1,039		863
Yeongam Solar Power Co., Ltd.		Electricity sales		834		174
Amman Asia Electric Power Company		Others		13,945		9,659
Cheongna Energy Co., Ltd.		Others		13,497		19,000
KEPCO SPC Power Corporation		Others		1,370		12,433
Yeonggwang Wind Power Co., Ltd.		Electricity sales		491		467
Solaseado Solar Power Co., Ltd.		Electricity sales		934		911
Kelar S.A.		Service		12,009		11,827
Dayone Energy Co., Ltd.		Electricity sales		1,096		3,875
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales		963		926
Bitsolar Energy Co., Ltd.		Electricity sales		112		269
Rabigh Electricity Company		Others		—		11,239
Jamaica Public Service Company Limited		Others		1,641		1,541
KW Nuclear Components Co., Ltd.		Service		1,305		1,348
Busan Shinho Solar Power Co., Ltd.		Electricity sales		1,185		489
Samsu Wind Power Co., Ltd.		Electricity sales		514		—
Others (Chungsongmeon BongSan wind power Co., Ltd. and 52 others)		Electricity sales		256,090		362,523

<Others>
Korea Development Bank		Electricity sales		2,411		1,910
		Interest income		907		1,084

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(3)	Related party transactions for the six-month periods ended June 30, 2023 and 2022 are as follows, continued:


In millions of won			Purchase and others
Company name	Transaction type		June 30, 2023		June 30, 2022
<Associates>
Korea Gas Corporation		Fuel purchase		5,387,782		5,449,469
Goseong Green Power Co., Ltd.		Electricity sales		875,552		905,921
Dongducheon Dream Power Co., Ltd.		Electricity sales		1,038,140		891,595
S-Power Co., Ltd.		Service		551,075		537,461
GS Donghae Electric Power Co., Ltd.		Electricity sales		493,291		508,544
Shin Pyeongtaek Power Co., Ltd.		Electricity sales		569,845		474,870
PT. Bayan Resources TBK		Others		44,684		45,226
Daeryun Power Co., Ltd.		Electricity sales		210,626		196,085
Korea Electric Power Industrial Development Co., Ltd.		Service		148,640		123,066
Korea Power Exchange		Service		48,872		48,405
Daewon Green Energy Co., Ltd.		Electricity sales		25,092		21,125
Gangwon Wind Power Co., Ltd.		Electricity sales		18,827		22,349
Busan Green Energy Co., Ltd.		Electricity sales		10,648		5,971
Hyundai Eco Energy Co., Ltd.		Electricity sales		13,277		15,193
Taebaek Gadeoksan Wind Power Co., Ltd.		Electricity sales		16,241		12,637
Saemangeum Sebit Power Plant Co., Ltd.		Electricity sales		11,548		7,899
Noeul Green Energy Co., Ltd.		REC Purchase		6,558		4,730
Muan Sunshine Solar Power Plant Co., Ltd.		Electricity sales		8,403		9,055
Anjwa Smart Farm & Solar City Co., Ltd.		Electricity sales		7,338		8,043
Muan Solar Park Co., Ltd.		Electricity sales		7,473		8,280
Jeju Gimnyeong Wind Power Co., Ltd.		Electricity sales		5,263		5,734
Samcheok Eco Materials Co., Ltd.		Electricity sales		5,167		7,055
Others (Hyundai Green Power Co., Ltd. and 39 others)		Electricity sales		41,463		47,625

<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales		332,613		253,277
Daegu Green Power Co., Ltd.		Electricity sales		195,265		231,236
Daesan Green Energy Co., Ltd.		Electricity sales		63,371		37,994
Cheongju Eco Park Co., Ltd.		Electricity sales		45,992		47,057
Seokmun Energy Co., Ltd.		Service		28,764		29,191
Yeongam Solar Power Co., Ltd.		Electricity sales		16,941		23,615
Cheongna Energy Co., Ltd.		Service		59		78
Yeonggwang Wind Power Co., Ltd.		Electricity sales		12,967		15,338
Solaseado Solar Power Co., Ltd.		Electricity sales		12,732		16,919
Dayone Energy Co., Ltd.		Service		5,906		6,981
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales		5,782		7,025
Bitsolar Energy Co., Ltd.		Electricity sales		6,127		6,436
Jamaica Public Service Company Limited		Others		67		128
KW Nuclear Components Co., Ltd.		Service		9,505		—
Busan Shinho Solar Power Co., Ltd.		Electricity sales		4,733		5,062
Samsu Wind Power Co., Ltd.		Electricity sales		4,968		5,492
Others (Chungsongmeon BongSan wind power Co., Ltd. and 52 others)		Electricity sales		51,427		23,924

<Others>
Korea Development Bank		Interest expense		3,462		1,842

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won		Receivables				Payables
Company name	Type	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
<Associates>
Korea Gas Corporation	Trade receivables		9,812		12,415		—		—
	Non-trade receivables and others		2		54,232		—		—
	Trade payables		—		—		634,569		1,882,607
	Non-trade payables and others		—		—		127		1,294
Goseong Green Power Co., Ltd.	Trade receivables		64,411		76,254		—		—
	Non-trade receivables and others		7		14		—		—
	Trade payables		—		—		205,695		182,095
	Non-trade payables and others		—		—		50,934		52,515
Dongducheon Dream Power Co., Ltd.	Trade receivables		3,352		592		—		—
	Non-trade receivables and others		369		270		—		—
	Trade payables		—		—		82,767		293,256
S-Power Co., Ltd.	Trade receivables		257		77		—		—
	Non-trade receivables and others		43		44		—		—
	Trade payables		—		—		55,945		135,504
	Non-trade payables and others		—		—		8		11
Shin Pyeongtaek Power Co., Ltd.	Trade receivables		1,609		7,375		—		—
	Non-trade receivables and others		31,706		1,068		—		—
	Trade payables		—		—		80,744		109,274
	Non-trade payables and others		—		—		303		101
GS Donghae Electric Power Co., Ltd.	Trade receivables		413		872		—		—
	Non-trade receivables and others		559		1,558		—		—
	Trade payables		—		—		72,747		72,947
	Non-trade payables and others		—		—		77		14,565
Daeryun Power Co., Ltd.	Trade receivables		209		195		—		—
	Trade payables		—		—		26,232		55,725
PT. Bayan Resources TBK	Non-trade receivables and others		—		43,365		—		—
	Non-trade payables and others		—		—		7,362		—
Busan Green Energy Co., Ltd.	Trade receivables		1		1		—		—
	Non-trade receivables and others		30,946		26,681		—		—
	Non-trade payables and others		—		—		3,484		4,415
Gangneung Eco Power Co., Ltd.	Trade receivables		34,338		19,364		—		—
	Non-trade receivables and others		422		478		—		—
	Non-trade payables and others		—		—		205		94
Taebaek Gadeoksan Wind Power Co., Ltd.	Non-trade receivables and others		86		97		—		—
	Trade payables		—		—		10,307		12,739
	Non-trade payables and others		—		—		4		5
Noeul Green Energy Co., Ltd.	Trade receivables		18		3		—		—
	Non-trade receivables and others		16,063		9,365		—		—
	Non-trade payables and others		—		—		2,109		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		5,174		1,895		—		—
	Non-trade receivables and others		10,289		13,635		—		—
	Trade payables		—		—		35,754		19,259
	Non-trade payables and others		—		—		48,265		18,538

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of June 30, 2023 and December 31, 2022 are as follows, continued:


In millions of won		Receivables				Payables
Company name	Type	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
<Joint ventures>
Chun-cheon Energy Co., Ltd.	Trade receivables		124		124		—		—
	Non-trade receivables and others		165		165		—		—
	Trade payables		—		—		41,599		79,117
	Non-trade payables and others		—		—		1		—
Daegu Green Power Co., Ltd.	Trade receivables		88		53		—		—
	Non-trade receivables and others		70		56		—		—
	Trade payables		—		—		32,141		66,715
Nghi Son 2 Power LLC	Non-trade receivables and others		7,192		30,143		—		—
Amman Asia Electric Power Company	Trade receivables		1,855		4,243		—		—
	Non-trade receivables and others		1,957		—		—		—
	Non-trade payables and others		—		—		21,712		21,653
Kelar S.A.	Trade receivables		2,533		3,653		—		—
	Non-trade receivables and others		24,881		21,716		—		—
Dayone Energy Co., Ltd.	Trade receivables		69		79		—		—
	Non-trade receivables and others		10,679		10,218		—		—
	Trade payables		—		—		594		1,027
	Non-trade payables and others		—		—		9,374		9,119
Cheongna Energy Co., Ltd.	Trade receivables		348		17,324		—		—
	Non-trade receivables and others		938		1,654		—		—
	Non-trade payables and others		—		—		356		1
Others (Chungsongmeon BongSan wind power Co., Ltd. and 46 others)	Trade receivables		71,363		66,257		—		—
	Non-trade receivables and others		127,228		25,177		—		—
	Trade payables		—		—		25,196		29,636
	Non-trade payables and others		—		—		103,324		99,314

<Others>
Korea Development Bank	Accrued interest income		—		5		—		—
	Non-trade receivables and others		31,973		30,836		—		—
	Non-trade payables and others		—		—		1,208		101
	Derivatives and others		13,823		67,662		258		3,759
KEPCO Lebanon SARL	Trade receivables (*)		75		—		—		—

(*)	The Group recognized bad debt allowance for the trade receivables in entirety.

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(5)	Loans and others arising from related party transactions as of June 30, 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.,		31,473			—		—			1,052			32,525
	KNOC Nigerian West Oil Co., Ltd. (Allowance for doubtful accounts)		(10,751	)		—		—			(1,393	)		(12,144	)
Associates	Nepal Water & Energy Development Company Private Limited		19,914			—		—			(1,534	)		18,380
Associates	Xe-Pian Xe-Namnoy Power Co., Ltd.		22,936			—		—			824			23,760
Associates	PT Wampu Electric Power		9,171			—		(164	)		494			9,501
Associates	PT Cirebon Energi Prasarana		29,569			—		—			2,072			31,641
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			—		—			(1,195	)		10,017
Associates	Daejung Offshore Wind Power Co., Ltd.		1,000			—		—			—			1,000
Associates	Bitgoel Eco Energy Co., Ltd.		34,790			—		(1,775	)		—			33,015
Associates	Saemangeum Sebit Power Plant Co., Ltd		37,249			—		(7,589	)		—			29,660
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		—			377			10,074
Joint ventures	Horus Solar, S.A. de C.V.		19,287			—		—			692			19,979
Joint ventures	Sunmex Renovables, S.A. de C.V.		16,383			536		—			603			17,522
Joint ventures	Kelar S.A.		43,965			—		—			1,658			45,623
Joint ventures	DE Energia SpA		7,260			—		—			260			7,520
Joint ventures	Daehan Wind Power PSC		14,618			—		—			524			15,142
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			—		—			6,704			193,439
Joint ventures	Pulau Indah Power Plant Sdn. Bhd.		10,207			—		—			(195	)		10,012
Joint ventures	Guadalupe Solar SpA		3,344			—		(121	)		118			3,341
Joint ventures	Foresight Iberian Solar Group Holding, S.L.		61,302			—		—			3,419			64,721
Joint ventures	Capman Lynx SCA, SICAR		31,628			—		—			1,714			33,342
	(Allowance for doubtful accounts)		(4,467	)		—		—			—			(4,467	)
Joint ventures	S-Power Chile SpA		253			—		—			9			262

			627,214			1,776		(9,649	)		16,203			635,544

(6)	Borrowings arising from related party transactions as of June 30, 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		—		(5,562	)		1,442			92,464
	Others		2,133		—		(188	)		—			1,945
	Operating funds		62,433		135,313		(119,333	)		21,764			100,177
	Syndicated Loan		12,455		—		(1,026	)		(549	)		10,880
	EBL and others		48,892		8,401		(1,452	)		1,383			57,224

			222,497		143,714		(127,561	)		24,040			262,690

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(7)	Guarantees provided to related parties as of June 30, 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 36,070	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	Export-Import Bank of Korea and others
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	Rabigh Electricity Company	Performance guarantees		SAR 1,551	Hana Bank
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees		USD 9,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company	Performance guarantees		USD 17,400	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
Korea Electric Power Corporation	Recursos Solares PV de Mexico II, S.A. de C.V.	Other performance guarantees		USD 393	CFE Transmission
Korea Electric Power Corporation	Sunmex Renovables, S.A. de C.V.	Other performance guarantees		USD 9,078	CENACE
Korea Electric Power Corporation	Sunmex Renovables, S.A. de C.V.	Other performance guarantees		MXN 3,666	SEMARNAT
Korea Electric Power Corporation	International Offshore Power Transmission Holding Company Limited	Performance guarantees		USD 150,000	Mizuho Bank
Korea Electric Power Corporation		Other performance guarantees		USD 7,000	Credit Agricole
Korea Electric Power Corporation	Pulau Indah Power Plant Sdn. Bhd. (*10)	Collateralized money invested		KRW 13,210	Malaysian Trustee Berhad
Korea Electric Power Corporation	KEPCO for Power Company	Debt guarantees		USD 55,025	Riyad bank
Korea Electric Power Corporation	KEPCO for Power Company	Other performance guarantees		USD 47,000	SMBC Seoul and others
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested		KRW 16,092	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 120,946	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 2,603	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested (*5)		KRW 49,959	Kookmin Bank and others
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Debt guarantees		KRW 20,300	BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested		KRW 4,457	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested		KRW 250	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested		KRW 170,049	Kookmin Bank and others
	Shin Pyeongtaek Power Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Haemodum Solar Co., Ltd.	Collateralized money invested		KRW 3,097	Nonghyup Bank
Korea Western Power Co., Ltd.	Muan Solar Park Co., Ltd.	Collateralized money invested		KRW 6,226	IBK and others
Korea Western Power Co., Ltd.	Anjwa Smart Farm & Solar City Co., Ltd.	Collateralized money invested		KRW 7,483	Hana Bank and others
Korea Western Power Co., Ltd.	Seoroseoro Sunny Power Plant Co., Ltd.	Collateralized money invested		KRW 896	Hana Bank and others

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(7)	Guarantees provided to related parties as of June 30, 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 555	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Hapcheon Floating Photovoltaic Power Plant Inc.	Collateralized money invested		KRW 8,622	Nonghyup Bank and others
Korea Western Power Co., Ltd.	Yeongwol Eco Wind Co., Ltd.	Collateralized money invested		KRW 3,396	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Collateralized money invested		KRW 414	Hana Bank and others
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	Gunsan Land Solar Co., Ltd.	Collateralized money invested		KRW 21,288	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	Seobusambo highway photovoltaics Co., Ltd.	Collateralized money invested		KRW 3,384	Hana Bank and others
	Seobusambo highway photovoltaics Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	Eumseong Eco Park Co., Ltd.	Collateralized money invested		KRW 8,603	Kyobo Life Insurance Co., Ltd. and others
Korea Western Power Co., Ltd	PungBack Wind Farm Corporation	Collateralized money invested		KRW 8,003	Hanwha Life Insurance Co., Ltd and others
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested		KRW 6,167	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested		KRW 17,011	Kookmin Bank and others
Korea East-West Power Co., Ltd.		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested		KRW 36,343	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Guarantees for supplemental funding (*1)		KRW 90,800
Korea East-West Power Co., Ltd.	Honam Wind Power Co., Ltd.	Collateralized money invested		KRW 4,633	Shinhan Bank and others
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested		KRW 262,381	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested		KRW 3,230	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested		KRW 21,168	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested		KRW 18,583	IBK
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested		KRW 18,736	Hana Bank and others
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Other guarantees		USD 3,150	PT. Adaro Indonesia
Korea East-West Power Co., Ltd.		Guarantees for supplemental funding (*1)		—	Sumitomo mitsui banking and others
		Collateralized money invested		KRW 100,847	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees		USD 14,400	Credit Agricole and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Collateralized money invested		KRW 43,986	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested		KRW 9,879	Mirae Asset Securities Co., Ltd. and others
Korea East-West Power Co., Ltd.		Collateralized loans		USD 5,728	Mirae Asset Securities Co., Ltd. and others
		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 11,208	Kyobo Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	Busan Industrial Solar Power Co., Ltd.	Collateralized money invested		KRW 1,063	Shinhan Bank and others

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(7)	Guarantees provided to related parties as of June 30, 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 10,613	Hana Bank and others
Korea East-West Power Co., Ltd.	Yangyang Wind Power Co., Ltd.	Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Daewon Green Energy Co., Ltd.	Collateralized money invested		KRW 4,956	Hana Bank and others
Korea East-West Power Co., Ltd.	Goheung New Energy Co., Ltd.	Collateralized money invested		KRW 3,916	Woori Bank and others
Korea East-West Power Co., Ltd.	Seungmun Green Energy	Collateralized money invested		KRW 9,047	Hana Bank and others
Korea East-West Power Co., Ltd.		Guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested		KRW 2,962	Shinhan Bank and others
Korea Southern Power Co., Ltd.		Performance guarantees and guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested		KRW 26,455	Korea Development Bank and others
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested		KRW 25,839	Shinhan Bank and others
Korea Southern Power Co., Ltd.		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
Korea Southern Power Co., Ltd.		Payment guarantees (*6)		USD 1,900	Hana Bank
		Collateralized money invested		KRW 15,847	Standard Chartered
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested		KRW 12,667	Woori Bank, Shinhan Bank and others
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Performance guarantees		—	Woori Bank, Shinhan Bank and others
Korea Southern Power Co., Ltd.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested		KRW 13,460	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 12,731	Kookmin Bank and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	Collateralized money invested (*8)		—	IBK and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	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 10,326	Shinhan Bank and others
Korea Southern Power Co., Ltd.	Omisan Wind Power Co., Ltd.	Guarantees for supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.	Geumsungsan Wind Power Co., Ltd.	Collateralized money invested		KRW 4,248	Kookmin Bank
Korea Southern Power Co., Ltd.	Geumsungsan Wind Power Co., Ltd.	Guarantees for supplemental funding (*1)		—
KOSPO Chile SpA	Kelar S.A.	Collateralized money invested		KRW 133,372	Export-Import Bank of Korea and others
KOSPO Chile SpA	Chester Solar I SpA	Collateralized money invested		KRW 1,513	IBK
KOSPO Chile SpA	Chester Solar IV SpA	Collateralized money invested		KRW 683	IBK
KOSPO Chile SpA	Chester Solar V SpA	Collateralized money invested		KRW 257	IBK
KOSPO Chile SpA	Diego de Almagro Solar SpA	Collateralized money invested		KRW 1,110	IBK
KOSPO Chile SpA	Laurel SpA	Collateralized money invested		KRW 833	IBK
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric Co., Ltd.	Collateralized money invested		KRW 155	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested		KRW 117,143	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 415	IBK
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Guarantees for supplemental funding (*1)		—	IBK and others
Korea Midland Power Co., Ltd.	Yaksu ESS Co., Ltd.	Collateralized money invested		KRW 544	IBK
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested		KRW 228	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested		KRW 5,798	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested		KRW 2,545	IBK
Korea Midland Power Co., Ltd.	Goesan Solar park Co., Ltd.	Collateralized money invested		KRW 2,676	IBK

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(7)	Guarantees provided to related parties as of June 30, 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 6,402	IBK and others
		Guarantees for supplemental funding (*1)		—
Korea Midland Power Co., Ltd.	Energyco Co., Ltd.	Collateralized money invested		KRW 2,074	Nonghyup Bank
		Debt guarantees		KRW 2,746	Shinhan Bank
Korea Midland Power Co., Ltd.	Jeju Gimnyeong Wind Power Co., Ltd.	Collateralized money invested		KRW 726	Nonghyup Bank
Korea Midland Power Co., Ltd.	Dongbu Highway Solar Co., Ltd.	Collateralized money invested		KRW 355	Shinhan Bank
Korea Midland Power Co., Ltd.	Seobu Highway Solar Co., Ltd.	Collateralized money invested		KRW 380	Shinhan Bank
Korea Midland Power Co., Ltd.	Yeongyang Wind Power Corporation II	Collateralized money invested		KRW 8,158	Korea Development Bank and others
Korea Midland Power Co., Ltd.	Haeparang Energy Co., Ltd.	Collateralized money invested		KRW 2,163	Templeton hana asset management Co. Ltd
		Guarantees for supplemental funding (*1)		—	Templeton hana asset management Co. Ltd
Korea Midland Power Co., Ltd.	Saemangeum Sebit Power Plant Co., Ltd.	Collateralized money invested		KRW 26,936	Kookmin Bank and others
Korea Midland Power Co., Ltd.	Yeomsubong Wind Power Co., Ltd.	Collateralized money invested		KRW 1,006	Korea Development Bank
	Yeomsubong Wind Power Co., Ltd.	Guarantees for supplemental funding (*1)		—	Korea Development Bank
Korea South-East Power Co., Ltd.	Dayone Energy Co., Ltd.	Collateralized money invested (*3)		—	IBK
Korea South-East Power Co., Ltd.	Dayone Energy Co., Ltd.	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 14,829	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested		KRW 13,566	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Collateralized money invested		KRW 4,478	Woori Bank
Korea South-East Power Co., Ltd.	Goseong Green Power Co., Ltd.	Collateralized money invested		KRW 310,282	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested		KRW 280,285	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND Solar Co., Ltd.	Collateralized money invested		KRW 1,314	IBK
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested		KRW 7,247	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested		KRW 2,192	IBK
Korea South-East Power Co., Ltd.	Chungsongmeon BongSan wind power Co., Ltd.	Collateralized money invested		KRW 2,637	Kyobo Life Insurance Co.,Ltd. and others
Korea South-East Power Co., Ltd.	Yeongam Solar Power Co., Ltd.	Collateralized money invested		KRW 9,301	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested		KRW 3,058	Shinhan Bank and others
Korea South-East Power Co., Ltd.	Saemangeum Heemang Photovoltaic Co., Ltd.	Collateralized money invested		KRW 14,285	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
Korea South-East Power Co., Ltd.	Nepal Water & Energy Development Company Private Limited	Business reserve payment guarantee		USD 33,333	International Finance Corporation and others
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 3,075	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Go deok Clean Energy Co., Ltd.	Collateralized money invested		KRW 3,731	Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested		KRW 3,548	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gwangyang Green Energy Co., Ltd.	Collateralized money invested		KRW 24,931	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gangneung Sacheon Fuel Cell Co., Ltd.	Collateralized money invested		KRW 3,942	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Chuncheon Green Energy Co., Ltd.	Collateralized money invested		KRW 8,931	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Yangyang Suri Wind Power Co., Ltd.	Collateralized money invested		KRW 10,021	Kookmin Bank and others

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(7)	Guarantees provided to related parties as of June 30, 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 June 30, 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 6,712 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 include the credit limits of guarantees to their subsidiaries.

(*10)

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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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(8)	Guarantees received from related parties as of June 30, 2023 are as follows:

(9)	Derivatives transactions with related parties as of June 30, 2023 are as follows:

(i) Currency Swap


In millions of won and thousands of foreign currencies except contract exchange rate information
			Contract amounts				Contract interest rate per annum						Contract exchange
													rate
Counterparty	Contract year		Pay		Receive		Pay			Receive			(in won)
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
		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
		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
		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

(ii) Currency forward


In millions of won and thousands of USD
					Contract amounts				Contract
									exchange rate
Counterparty	Contract date		Maturity date		Pay		Receive		(in won)
Korea Development Bank		2023.05.30		2023.07.04		13,192		USD 10,000		1,319.20
		2023.06.12		2023.10.26		7,687		USD 6,000		1,281.10
		2023.06.29		2023.09.25		13,074		USD 10,000		1,307.35

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

46.	Related Parties, Continued

(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	June 30, 2023				June 30, 2022
Type	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Salaries		235		459		329		561
Retirement benefits		10		25		13		21

		245		484		342		582

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

47.	Statement of Cash Flows

(1)	Significant non-cash transactions for the six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won
Transactions	June 30, 2023		June 30, 2022
Transfer from construction-in-progress to other assets		4,100,449		3,351,912
Recognition of asset retirement cost and related provision for decommissioning costs		161,186		151,272
Transfer from provision for disposal of used nuclear fuel to accrued expenses		236,713		136,859
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities		11,246,004		7,056,890
Transfer from inventory to stored nuclear fuel		415,448		297,354
Recognition of right-of-use assets and other		137,265		94,849

(2)	Changes in liabilities incurred from financing activities for the six-month periods ended June 30, 2023 and 2022 are as follows:


In millions of won	June 30, 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		10,236,406			—		591,718		131,433,489
Lease liabilities		4,163,143		(314,740	)		127,588		76,070		4,052,061

		124,768,508		9,921,666			127,588		667,788		135,485,550


In millions of won	June 30, 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		17,660,538			—		1,087,263		99,277,314
Lease liabilities		4,410,503		(312,338	)		91,310		260,650		4,450,125

		84,940,016		17,348,200			91,310		1,347,913		103,727,439

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

48.	Commitments for Expenditure

(1)	The commitments for acquisition of property, plant and equipment as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 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)		57,226		417		57,203		12,595
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)		51,807		33,437		50,151		37,638
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S		37,168		15,109		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 (Kyungin Construction)		58,271		746		58,269		3,883
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S		35,136		23,811		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 (unit price contract)		—		—		202,795		95,428
Purchase of GIS (362KV, 6300A, 63KA) Type 19 – Shinyangsan S/S		32,460		5,635		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
Purchase of GIS(362KV,6300A,63KA) Type 18 – Wolsung S/Y		32,090		32,090		32,090		32,090
Purchase of cable (FR CNCO-W,1C,325SQ) 672,300M (unit price contract)		32,918		9,737		31,387		19,213
Purchase of cable (TR CNCE-W,1C,325SQ) 1,342,000M (unit price contract)		93,455		16,089		75,620		40,497
Purchase of cable (TR CNCE-W,1C,600SQ) 377,000M (unit price contract)		78,386		22,044		31,851		17,478
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 2,175,300M (unit price contract)		54,687		3,381		53,064		29,436
System stabilization ESS equipment (Bubuk S/S) Type 1		222,300		158,455		222,300		222,300
System stabilization ESS equipment (Shinnamwon S/S) Type 1		211,500		151,008		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		72,195		57,146		—		—
Advanced EType low voltage electronic watt-hour meter 1,311,552 ea		36,103		20,553		—		—
System stabilization ESS equipment (Yesan S/S) Type 1		56,403		56,403		—		—
System stabilization ESS equipment (Hamyang S/S) Type 1		35,609		35,609		—		—
Construction of Saeul Units (#3,4)		9,800,424		1,717,313		9,800,424		2,455,673
Construction of Shin-Hanul Units (#1,2) (*)		10,430,999		—		10,327,372		97,889
Construction of Shin-Hanul Units (#3,4)		11,680,360		11,162,173		11,007,232		10,858,828
Other 31 contracts		903,242		352,515		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		9		166,287		10,898
Purchase of equipments for the construction project of Boryeong indoor coal storage yard		330,856		290,546		318,197		287,965
Purchase of main machine for Boryeong New Complex Unit 1		281,600		228,053		—		—
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		23,159		126,302		32,748
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant		221,964		19,422		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		202,040		204,094		204,094
Installation of natural gas supply facility at Gumi natural gas power plant		70,620		65,620		70,620		70,620
Purchase of coal handling machine for construction of Samcheok Units (#1,2)		335,956		6,949		299,048		6,687

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

48.	Commitments for Expenditure, Continued

(1)	The commitments for acquisition of property, plant and equipment as of June 30, 2023 and December 31, 2022 are as follows, continued:


In millions of won	June 30, 2023				December 31, 2022
Contracts	Commitment amounts		Remaining liability balances		Commitment amounts		Remaining liability balances
Purchase of main equipment for Namjeju		140,144		3		140,144		3
Purchase of main equipment for Shin-Sejong combined thermal power plant		257,831		24,169		234,392		32,472
Purchase of Hadong thermal power indoor carboniferous plant		180,923		77,237		162,814		105,504
Purchase of phase 2 power generation facility for Yeongwol fuel cells		94,710		33,359		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

(*)	As of June 30, 2023, the amount of budget for the contract includes the value of Shin-Hanul Unit #1 construction of which has completed during the year ended December 31, 2022.

(2)	As of June 30, 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
Conversion	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

June 30, 2023 and 2022 (Unaudited)

49.	Contingencies and Commitments

(1)	Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2023 and December 31, 2022 are as follows:


In millions of won	June 30, 2023				December 31, 2022
	Number of cases		Claim amount		Number of cases		Claim amount
As the defendant		678		972,627		653		981,878
As the plaintiff		256		575,472		238		599,809

As of June 30, 2023, there are 6 ongoing litigations and 1 arbitration case between consolidated entities.

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 40,081 million as litigation provisions in relation to the lawsuit as of June 30, 2023.

In addition to the abovementioned significant ongoing claims, there are 24 arbitration cases pertaining to the Group as of June 30, 2023 and the significant arbitration cases for the six-month period ended June 30, 2023 are as follows:

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)

During 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 June 30, 2023, the Group cannot reasonably estimate whether the inflow of economic benefits is probable as a result of the arbitration.

iii)

During 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 June 30, 2023, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

iv)

During the six-month period ended June 30, 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.

During the six-month period ended June 30, 2023, the Group filed a commercial arbitration to request payment of expenses such as monitoring vessel operating expenses for the Jindo-Jeju high-voltage direct current (HVDC) connection project contract, but has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

vi)

During the six-month period ended June 30, 2023, the Group filed an arbitration application to Korean Commercial Arbitration Board in relation to the insufficient operation performance of the Sinseongnam Substation (345kV) STATCOM (reactive power compensation system for voltage stabilization in metropolitan area), but cannot reasonably estimate whether the inflow of economic benefits is probable as a result of the arbitration.

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

49.	Contingencies and Commitments, Continued

(2)	Guarantees of payments and commitments provided to other companies as of June 30, 2023 are as follows:

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.

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.

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 June 30, 2023.

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.

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.

The Group has provided USD 5,271 thousand for a debt guarantee to SMBC, to guarantee the payment of debt in relation to hydroelectric power business of Wampu, Indonesia.

The Group has provided USD 30,000 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.

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.

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.

10)

Nonghyup Bank is providing a payment guarantee of USD 4,758 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.

11)

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.

12)

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.

13)

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.

14)

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.

15)

The Group has provided Kookmin Bank a debt guarantee up to USD 40,000 thousand to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.

16)

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.

17)

As of June 30, 2023, Gunsan Land Solar Co., Ltd., a joint venture of the Group, has built and is operating a 99 MW photovoltaic power generation facility in the public water reclamation area in Osikdo-dong, Gunsan-si, Jeollabuk-do. The Group is obligated to ensure that Gunsan Land Solar Co., Ltd. can finance up to 80% of the total project cost with investments from citizen and provide a 7% return on the citizen who invested after the construction period is over according to the Shareholders’ agreement. In addition, when the investment from citizen fails to reach the target percentage of 80% and additional debts are collected for fulfill the target percentage, the Group is obligated to provide Gunsan-si the amount of 7% return on uncollected citizen investments estimated to be collected less the amount of additional debts collected instead.

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

49.	Contingencies and Commitments, Continued

(3)	Credit lines provided by financial institutions as of June 30, 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		5,300,000
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		2,189,495
	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		1,248,992
	Kookmin Bank and others	EUR		25,002
	Shinhan Bank	JPY		481,785
Certification of Performance guarantee on contract	Hana Bank and others	KRW		121,982
	First Abu Dhabi Bank and others	USD		1,000,584
	Korea Development Bank and others	JPY		620,000
	Hana Bank	EUR		3,965
	Hana Bank	INR		44,872
	Hana Bank	OMR		6,250
	Hana Bank	SAR		1,551
Certification of bidding	Hana Bank	USD		5,200
	Export-Import Bank of Korea	EUR		10,000
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance	KRW		63,455
	Hana Bank and others	USD		775,242
	Hana Bank and others	MXN		21,597
Others	Nonghyup Bank and others	KRW		262,571
	Nonghyup Bank and others	USD		269,631
	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	Export-Import Bank of Korea 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

June 30, 2023 and 2022 (Unaudited)

49.	Contingencies and Commitments, Continued

(4)	As of June 30, 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 June 30, 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 June 30, 2023. The Group has provided a promissory note as a repayment guarantee.

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 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 65,093 million as of June 30, 2023, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of 739 million and depreciation on the idle assets of 1,830 million are recorded in other expenses for the six-month period ended June 30, 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 June 30, 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 June 30, 2023. The book value of facility is 12,558 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 June 30, 2023.

(7)	As of June 30, 2023, the Group owns land at 6171-1 Nuri-ri, Yeongi-myeon, Sejong Special Self-Governing City as PP&E with limited ownership, and its book value is 64,371 million.

(8)

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 June 30, 2023.

(9)

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.

(10)

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.

(11)

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 June 30, 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 six-month period ended June 30, 2023.

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

50.	Subsequent Events

(1)	Subsequent to June 30, 2023, KEPCO borrowed short-term and long-term borrowings for the purposes of operation as follows:


In millions of won
Company	Type	Issue date		Maturity		Interest rate (%)	Amount
Korea Electric Power Corporation	Short-term borrowings		2023.07.04		2024.07.04	3M CD+1.04	500,000
	Short-term borrowings		2023.07.04		2024.07.04	3M CD+1.09	500,000
	Long-term borrowings (CP) (*)		2023.07.12		2028.07.12	3M CD+0.70	200,000
	Long-term borrowings (CP) (*)		2023.08.11		2028.08.11	3M CD+0.63	100,000

(*)	The maturity of mid- and long-term commercial papers (CP) corresponds to the contract period of the CP agreement.

(2)	Subsequent to June 30, 2023, KEPCO and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., and Korea East-West Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows:


In millions of won and thousands of foreign currencies
Company	Type	Issue date		Maturity		Interest rate (%)		Amount
Korea Electric Power Corporation	FY23 #14 Global bond		2023.07.31		2026.07.31		5.38	USD 1,000,000
Korea Hydro & Nuclear Power Co., Ltd.	#12 Global bond		2023.07.18		2028.07.18		5.00	USD 500,000
Korea Midland Power Co., Ltd.	#72-1 Corporate bond		2023.07.06		2025.07.06		4.11	KRW 70,000
	#72-2 Corporate bond		2023.07.06		2028.07.06		4.11	KRW 30,000
Korea Western Power Co., Ltd.	#59-1 Corporate bond		2023.07.19		2024.07.19		3.96	KRW 110,000
	#59-2 Corporate bond		2023.07.19		2026.07.19		4.02	KRW 20,000
	#59-3 Corporate bond		2023.07.19		2043.07.19		4.15	KRW 40,000
Korea East-West Power Co., Ltd.	#23-1 Foreign currency bond		2023.07.12		2028.07.12		4.88	USD 350,000

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Notes to the Interim Consolidated Financial Statements, Continued

June 30, 2023 and 2022 (Unaudited)

51.	Adjusted Operating Loss

The operating profit (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 and six-month periods ended June 30, 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	June 30, 2023						June 30, 2022
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Operating loss on the interim consolidated statements of comprehensive income (loss)		(2,272,398	)		(8,449,957	)		(6,516,348	)		(14,303,270	)
Add
Other income
Reversal of other provisions		12,747			23,333			1,915			4,271
Gains on government grants		72			132			70			145
Gains on assets contributed		13,772			15,794			104			255
Gains on liabilities exempted		573			675			1,002			1,160
Compensation and reparations revenue		16,603			35,550			14,801			30,476
Revenue from research contracts		1,414			2,130			4,411			6,237
Rental income		55,923			107,758			51,918			102,740
Others		33,880			39,348			24,685			28,910
Other gains
Gains on disposal of property, plant and equipment		7,127			13,694			70,935			77,975
Gains on disposal of intangible assets		—			—			132			132
Gains on foreign currency translation		—			12,226			22,684			34,169
Gains on foreign currency transactions		19,410			67,344			25,023			37,121
Gains on insurance proceeds		—			—			5,154			5,154
Others		67,079			168,848			89,248			145,544
Deduct
Other expenses
Compensation and indemnification expense		(3	)		(3	)		(11	)		(11	)
Accretion expenses of other provisions		(126	)		(471	)		(119	)		(642	)
Depreciation expenses on investment properties		(124	)		(247	)		(125	)		(226	)
Depreciation expenses on idle assets		(916	)		(1,830	)		(917	)		(1,807	)
Other bad debt expense		(5,966	)		(8,584	)		(3,225	)		(5,632	)
Donations		(91,295	)		(101,424	)		(20,487	)		(30,000	)
Others		(9,959	)		(16,900	)		(16,678	)		(52,487	)
Other losses
Losses on disposal of property, plant and equipment		(22,853	)		(34,157	)		(21,794	)		(51,770	)
Losses on disposal of intangible assets		(13	)		(70	)		(20	)		(39	)
Impairment loss on property, plant and equipment		(4,146	)		(6,167	)		—			—
Impairment loss on intangible assets		—			(283	)		(14	)		(14	)
Losses on foreign currency translation		(5,437	)		(10,364	)		(23,489	)		(26,336	)
Losses on foreign currency transactions		(27,402	)		(101,806	)		(62,162	)		(88,124	)
Others		(44,091	)		(106,327	)		(45,719	)		(83,681	)

Adjusted operating loss		(2,256,129	)		(8,351,758	)		(6,399,026	)		(14,169,750	)

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