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 June 2024

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, 2024 to March 31, 2024)

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) 82-61-345-4218

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

3. Major businesses

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

 

  •  

development of electric power resources;

 

  •  

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

 

  •  

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

 

  •  

overseas business related to the businesses mentioned above;

 

  •  

investment or contributions related to the businesses mentioned above;

 

  •  

development and operation of certain real estate holdings; and

 

  •  

other businesses entrusted by the government.

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

4. Consolidated subsidiaries

(As of March 31, 2024)

 

Listed

   

Unlisted

   

Total

2

    165    167

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5. Major changes in management

 

  A.

On February 21, 2024, Mr. Oh, Heung-Bok was appointed as a standing director for a term of two years in replacement of Mr. Seo, Guen-Bae whose position changed.

 

  B.

On April 29, 2024, Mr. Kang, Hoon was appointed as a non-standing director for a term of two years in replacement of Ms. Kim, Jae-Shin 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

 

  A.

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

 

  B.

Total number of issued shares: 641,964,077

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

 

  C.

Dividends: KEPCO did not pay any dividend for fiscal year 2023.

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II. Business Overview

1. Consolidated financial results by segment for a three-month period ended March 31, 2023 and 2024

(In billions of Won)

 

     January to March 2023      January to March 2024  
   Sales      Operating
profit		      Sales      Operating
profit		  

Electricity sales

      20,910        -6,347        22,782        1,262  

Nuclear generation

      2,323        -244        2,697        -278  

Thermal generation

      11,073        458        7,849        307  

Plant maintenance & engineering service

      699        93        782        99  

Others(1)

     626        23        527        12  

Subtotal

      35,632        -6,017        34,638        1,402  

Adjustment for related-party transactions

      -14,038        -161        -11,345        -103  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      21,594        -6,178        23,293        1,299  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

Note:

 

(1)

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

2. Changes in unit prices of major products for a three-month period ended March 31, 2023 and 2024

(In Won per kWh)

 

Business sector

    Company    January to March
2023		      January to March
2024		  

Electricity sold

    Residential    KEPCO      145.71        155.44  
   Commercial      162.94        173.45  
   Educational      128.01        139.27  
   Industrial      148.26        166.30  
   Agricultural      72.64        79.99  
   Street lighting      141.56        153.50  
   Overnight usage      101.69        112.17  

Electricity from nuclear generation

    Nuclear Generation    KHNP      51.57        59.57  

Electricity from thermal generation

    Thermal generation    KOSEP      171.47        126.86  
   KOMIPO      200.65        146.50  
   KOWEPO      208.91        153.56  
   KOSPO      208.50        172.88  
   EWP      195.26        145.37  

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3. Power purchase from generation subsidiaries for a three-month period ended March 31, 2024

 

Company

    Volume
(GWh)		      Expense
(In billions of Won)		  

KHNP

      44,348        2,647  

KOSEP

      10,277        1,299  

KOMIPO

      12,136        1,777  

KOWEPO

      8,675        1,326  

KOSPO

      8,444        1,459  

EWP

      8,674        1,260  

Others

      52,654        8,608  

Closing adjustment

      —         871  
  

 

 

     

 

 

  

Total

      145,208        19,245  
  

 

 

     

 

 

  

4. Intellectual property as of March 31, 2024

 

     Patents      Utility models      Designs      Trademarks      Total  

KEPCO

      3,663        15        131        64        3,873  

Generation subsidiaries

      3,937        57        90        260        4,344  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      7,600        72        221        324        8,217  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

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III. Financial Information

1. Condensed consolidated financial results as of and for a three-month period March 31, 2023 and 2024

(In billions of Won)

 

Consolidated statements of

comprehensive income

     

Consolidated statements of

financial position

  
     January to
March
2023		      January to
March
2024		      Change           December 31,
2023		      March 31,
2024		      Change  

Sales

      21,594        23,293        1,699     

Total assets

      239,715        238,970        -745  

Operating profit (loss)

      -6,178        1,299        7,477     

Total liabilities

      202,450        200,855        -1,595  

Net income (loss)

      -4,911        596        5,507     

Total equity

      37,265        38,114        849  

2. Condensed separate financial results as of and for a three-month period March 31, 2023 and 2024

(In billions of Won)

 

Separate statements of

comprehensive income

     

Separate statements of

financial position

  
     January to
March
2023		      January to
March
2024		      Change           December 31,
2023		      March 31,
2024		      Change  

Sales

      20,910        22,782        1,872     

Total assets

      138,838        135,727        -3,111  

Operating profit (loss)

      -6,347        1,262        7,609     

Total liabilities

      120,181        116,470        -3,711  

Net income (loss)

      -4,932        593        5,525     

Total equity

      18,657        19,256        599  

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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 and one standing director.

2. Board meetings and agenda for a three-month period ended March 31, 2024

 

Number of meetings

    Number of agendas    Classification
   Resolutions    Reports

5     

    12    8    4

 

*

The audit committee held 4 meetings with 16 agenda (of which, 8 were approved as proposed and 8 were accepted as reported).

3. Major activities of the Board of Directors for a three-month period ended March 31, 2024

 

Date

   

Agenda

   

Results

   

Type

January 15, 2024

    Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation    Approved as proposed    Resolution

January 19, 2024

    Approval of the safety management plan of 2024    Approved as proposed    Resolution

February 6, 2024

    Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2024    Approved as proposed    Resolution
February 23, 2024    Approval to call for the annual general meeting of shareholders for the fiscal year 2023    Approved as proposed    Resolution
   Approval of consolidated and separate financial statements for the fiscal year 2023    Approved as proposed    Resolution
   Approval of the maximum aggregate amount of remuneration for directors in 2024    Accepted as proposed    Resolution
   Approval of early contribution to Korea Institute of Energy Technology in 2024    Accepted as proposed    Resolution
   Report on the annual management of commercial papers in 2023    Accepted as reported    Report
   Report on internal control over financial reporting for the fiscal year 2023    Accepted as reported    Report
   Report on the evaluation of internal control over financial reporting for the fiscal year 2023    Accepted as reported    Report
   Report on audit results for 2023    Accepted as reported    Report

March 22, 2024

    Approval of Next-Gen Power Information System development    Accepted as proposed    Resolution

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4. Attendance Status of Non-standing directors for a three-month period ended March 31, 2024

 

Date

   

Agenda

   

Han,

Jin-

Hyun

   

Kim,

Jae-

Shin

   

Kim,

Jong-
Woon

   

Kim,

Jun-

Ki

   

Park,

Chung-

Kun

   

Kim,

Sung-

Eun

   

Lee,

Sung-

Ho

   

Cho,

Seong-

Jin

January 15, 2024    Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation    For    For    For    Absent    For    For    For    For
January 19, 2024    Approval of the safety management plan of 2024    For    For    For    For    For    For    For    For
February 6, 2024    Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2024    For    For    For    For    For    For    Absent    For
February 23, 2024    Approval to call for the annual general meeting of shareholders for the fiscal year 2023    For    For    For    For    For    For    For    For
   Approval of consolidated and separate financial statements for the fiscal year 2023    For    For    For    For    For    For    For    For
   Approval of the maximum aggregate amount of remuneration for directors in 2024    For    For    For    For    For    For    For    For
   Approval of early contribution to Korea Institute of Energy Technology in 2024    For    Against    For    Against    For    Against    For    For
   Report on the annual management of commercial papers in 2023    Agenda for Report
   Report on internal control over financial reporting for the fiscal year 2023    Agenda for Report
   Report on the evaluation of internal control over financial reporting for the fiscal year 2023    Agenda for Report
   Report on audit results for 2023    Agenda for Report
March 22, 2024    Approval of Next-Gen Power Information System development    For    For    Absent    For    For    For    For    For
     

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

  

Attendance Rate

    100%    100%    80%    80%    100%    100%    80%    100%
     

 

   

 

   

 

   

 

   

 

   

 

   

 

   

 

Table of Contents

5. Attendance Status of Standing directors for a three-month period ended March 31, 2024

 

Date

   

Agenda

    Kim,
Dong-
Cheol		      Jun,
Young-
Sang		      Lee,
Jung-
Bok		      Lee,
Jun-
Ho		      Oh,
Heung-
Bok		      Seo,
Chul-
Soo		      Seo,
Guen-
Bae		  
January 15, 2024    Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation      For        For        For        For           For        For  
January 19, 2024    Approval of the safety management plan of 2024      For        For        For        For       
 Before
Appointment		  
 		      For        For  
February 6, 2024    Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2024      For        For        For        For           For        For  
February 23, 2024    Approval to call for the annual general meeting of shareholders for the fiscal year 2023      For        For        For        For        For        For        For  
   Approval of consolidated and separate financial statements for the fiscal year 2023      For        For        For        For        For        For        For  
   Approval of the maximum aggregate amount of remuneration for directors in 2024      For        For        For        For        For        For        For  
   Approval of early contribution to Korea Institute of Energy Technology in 2024      For        For        For        For        For        For        For  
   Report on the annual management of commercial papers in 2023      Agenda for Report  
   Report on internal control over financial reporting for the fiscal year 2023      Agenda for Report  
   Report on the evaluation of internal control over financial reporting for the fiscal year 2023      Agenda for Report  
   Report on audit results for 2023      Agenda for Report  
March 22, 2024    Approval of Next-Gen Power Information System development      For        For        For        For        For        For        For  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  

Attendance Rate

      100%        100%        100%        100%        100%        100%        100%  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Table of Contents

6. Major activities of the Audit Committee for a three-month period ended March 31, 2024

 

Date

   

Agenda

   

Results

   

Type

January 19, 2024    Approval of audit plans for 2024    Approved as proposed    Resolution
   Approval of Clean KEPCO branch office certification    Approved as proposed    Resolution
   Approval of appointment of independent auditors of subsidiaries    Approved as proposed    Resolution
   Report on audit education plans in 2024    Accepted as reported    Report
   Report on independence of independent auditors    Accepted as reported    Report
February 16, 2024    Approval of investigation result on the agenda for the extraordinary general meeting of shareholders    Approved as proposed    Resolution
February 23, 2024    Prior approval for non-audit service for subsidiaries by the independent auditor    Approved as proposed    Resolution
   Approval of for the consolidated and separate financial statements and business report for the fiscal year 2023    Approved as proposed    Resolution
   Report on internal control over financial reporting for the fiscal year 2023    Accepted as reported    Report
   Report on the evaluation on internal control over financial reporting for the fiscal year 2023    Accepted as reported    Report
   Report on audit results by the independent auditor for the fiscal year 2023    Accepted as reported    Report
   Report on audit results for 2023    Accepted as reported    Report
March 14, 2024    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 2023    Accepted as reported    Report
   Report on audit results for January and February of 2024    Accepted as reported    Report

 

*

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

Table of Contents

7. Attendance Status of the Audit Committee for a three-month period ended March 31, 2024

 

Date

   

Agenda

   

Kim, Jae-Shin

   

Kim, Sung-Eun

   

Jun, Young-Sang

January 19, 2024    Approval of audit plans for 2024    Attended    Attended    Attended
  

 

Approval of Clean KEPCO branch office certification

  

 

Approval of appointment of independent auditors of subsidiaries

  

 

Report on audit education plans in 2024

  

 

Report on independence of independent auditors

February 16, 2024    Approval of investigation result on the agenda for the extraordinary general meeting of shareholders    Attended    Attended    Attended
February 23, 2024    Prior approval for non-audit service for subsidiaries by the independent auditor    Attended    Attended    Attended
  

 

Approval of for the consolidated and separate financial statements and business report for the fiscal year 2023

  

 

Report on internal control over financial reporting for the fiscal year 2023

  

 

Report on the evaluation on internal control over financial reporting for the fiscal year 2023

  

 

Report on audit results by the independent auditor for the fiscal year 2023

  

 

Report on audit results for 2023

March 14, 2024    Approval of investigation result on the agenda for the annual general meeting of shareholders    Attended    Attended    Attended
  

 

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

  

 

Report on audit results by the independent auditor for the fiscal year 2023

  

 

Report on audit results for January and February of 2024

     

 

   

 

   

 

  

Attendance Rate

    100%    100%    100%
     

 

   

 

   

 

Table of Contents

V. Shareholder’s Meetings

1. Summary of shareholder’s meetings for a three-month period ended March 31, 2024

 

Type

   

Agenda

   

Results

 

Extraordinary

General Meeting

held on

February 21, 2024

   

 

Election of a Standing Directors

   

 

Approved as proposed

Annual

General Meeting

held on

March 26, 2024

    Approval of the consolidated and separate financial statements for the fiscal year 2023    Approved as proposed
   Approval of the maximum aggregate amount of remuneration for directors in 2024    Approved as proposed

VI. Shareholders

1. List of shareholders as of March 31, 2024

 

     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        48,866,615        7.30  

Public (Non-Koreans)

    Common Shares      956        83,824,927        13.06  
   American depositary shares (ADS)      1        10,100,737        1.57  

Public (Koreans)

      596,722        173,094,740        26.97  
     

 

 

     

 

 

     

 

 

  

Total

      597,682        641,964,077        100.00  
     

 

 

     

 

 

     

 

 

  

 

  •  

Percentages are based on issued shares of common stock.

 

  •  

All of our shareholder have equal voting rights.

 

  •  

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

Table of Contents

VII. Directors and employees as of and for a nine-month period ended March 31, 2024 (KEPCO Only)

1. Directors

 

       (In thousands of Won)

Type

     

Number of

directors

      Total
remuneration		        Average
remuneration
per person		     

Remarks

Standing director

      6        210,508          35,084      Excluding members of the
Audit Committee

Non-standing director

      6        45,000          7,500  

Member of Audit Committee

      Standing director      1        33,910          33,910      — 
     Non-standing director      2        15,000          7,500      — 
         

 

     

 

 

       

 

 

     

 

Total

      15        304,418          20,294      — 
         

 

     

 

 

       

 

 

     

 

2. Employees

 

 

     (In thousands of Won)  

Type

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

Male

      17,350        101        17,451        15.2        402,156,715        22,840  

Female

      5,250        56        5,306        13.9        104,312,954        19,541  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      22,600        157        22,757        14.9        506,469,669        22,072  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

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VIII. Other Information Necessary for the Protection of Investors

1. Pending legal proceedings as of March 31, 2024

 

(In billions of Won)  

Type

    Number of
lawsuits		      Amount
claimed		  

Lawsuits where KEPCO and its subsidiaries are engaged as the defendants

      678        706  

Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs

      269        661  

2. Sanctions as of March 31, 2024

 

Prosecution
Date

   

Subject

   

Sanctions

   

Relevant laws (charges)

   

Proceedings

  

Position

   

Tenure

June 30, 2021   

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

(Former)

    4yrs    Prosecution without detention   

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

The Criminal Act

    In the progress in the district court

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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.

 

By:  

/s/ Park, WooGun

Name:   Park, WooGun
Title:   Vice President

Date: June 13, 2024

Table of Contents

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim consolidated financial statements

For each of the three-month periods ended March 31, 2024 and 2023

with the independent auditor’s review report

Table of Contents

Table of Contents

LOGO

Report on review of interim consolidated financial statements

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

Korea Electric Power Corporation

We have reviewed the accompanying interim consolidated financial statements of Korea Electric Power Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated statement of financial position as of March 31, 2024, and the related interim consolidated statements of comprehensive income or loss, interim consolidated statements of changes in equity and interim consolidated statements of cash flows for each of the three-month periods ended March 31, 2024 and 2023, and a summary of 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, 2023, and the related consolidated statement of comprehensive income or 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 11, 2024 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

 

LOGO

May 16, 2024

 

This review report is effective as of May 16, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report 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.

Table of Contents

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For each of the three-month periods ended March 31, 2024 and 2023

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

Dong-Cheol Kim

President/CEO

Korea Electric Power Corporation

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of financial position

As of March 31, 2024 (Unaudited) and December 31, 2023

 

In millions of won    Note      March 31, 2024      December 31, 2023  

Assets

         

Current assets

         

Cash and cash equivalents

      5,6,7,44      W 2,950,340        4,342,887  

Current financial assets, net

      5,6,9,11,12,13,44,46        3,218,623        3,107,397  

Trade and other receivables, net

      5,8,20,24,44,45,46        10,545,713        11,985,735  

Inventories, net

      14        8,650,430        8,875,615  

Income tax receivables

         68,367        69,612  

Current non-financial assets

      15        943,757        1,109,321  

Assets held-for-sale

      16,41        45,648        45,648  
     

 

 

     

 

 

  

Total current assets

         26,422,878        29,536,215  
     

 

 

     

 

 

  

Non-current assets

         

Non-current financial assets, net

      5,6,9,10,11,12,13,44,46        4,041,080        3,546,214  

Non-current trade and other receivables, net

      5,8,20,44,45,46        2,262,785        2,193,587  

Property, plant and equipment, net

      18,24,27,48        181,042,772        179,875,535  

Investment properties, net

      19,27        209,164        185,527  

Goodwill

      16        99,055        99,156  

Intangible assets other than goodwill, net

      21,27,45        1,043,536        1,033,984  

Investments in associates

      4,17        6,354,875        6,176,889  

Investments in joint ventures

      4,17        3,869,169        3,485,699  

Defined benefit assets, net

      25        47,209        70,187  

Deferred tax assets

         13,223,598        13,161,802  

Non-current non-financial assets

      15        353,547        350,170  
     

 

 

     

 

 

  

Total non-current assets

         212,546,790        210,178,750  
     

 

 

     

 

 

  

Total Assets

      4      W 238,969,668        239,714,965  
     

 

 

     

 

 

  

(Continued)

 

1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of financial position, Continued

As of March 31, 2024 (Unaudited) and December 31, 2023

 

In millions of won    Note      March 31, 2024      December 31, 2023  

Liabilities

         

Current liabilities

         

Trade and other payables, net

      5,22,24,44,46      W 9,344,187        9,089,973  

Current financial liabilities, net

      5,12,23,44,46        42,193,514        41,139,726  

Income tax payables

         647,703        482,934  

Current non-financial liabilities

      20,28,29        8,585,711        7,881,663  

Current provisions

      26,44        2,808,754        2,654,125  
     

 

 

     

 

 

  

Total current liabilities

         63,579,869        61,248,421  
     

 

 

     

 

 

  

Non-current liabilities

         

Non-current trade and other payables, net

      5,22,24,44,46        4,948,466        4,981,957  

Non-current financial liabilities, net

      5,12,23,44,46        88,543,990        92,944,338  

Non-current non-financial liabilities

      28,29        11,331,888        11,196,000  

Employee benefits liabilities, net

      25,44        1,143,543        1,035,320  

Deferred tax liabilities

         5,208,916        5,163,135  

Non-current provisions

      26,44        26,098,790        25,881,044  
     

 

 

     

 

 

  

Total non-current liabilities

         137,275,593        141,201,794  
     

 

 

     

 

 

  

Total Liabilities

      4      W 200,855,462        202,450,215  
     

 

 

     

 

 

  

Equity

         

Contributed capital

      1,30,44     

Share capital

       W 3,209,820        3,209,820  

Share premium

         843,758        843,758  
     

 

 

     

 

 

  
        4,053,578        4,053,578  
     

 

 

     

 

 

  

Retained earnings

      31        

Legal reserves

         1,604,910        1,604,910  

Voluntary reserves

         —         2,812,313  

Unappropriated retained earnings

         15,846,661        11,921,039  
     

 

 

     

 

 

  
        17,451,571        16,338,262  
     

 

 

     

 

 

  

Other components of equity

      33        

Other capital surplus

         1,600,830        1,600,801  

Accumulated other comprehensive income

         887,856        557,430  

Other equity

         12,708,578        13,294,972  
     

 

 

     

 

 

  
        15,197,264        15,453,203  
     

 

 

     

 

 

  

Equity attributable to owners of the controlling company

         36,702,413        35,845,043  

Non-controlling interests

      16,32        1,411,793        1,419,707  
     

 

 

     

 

 

  

Total Equity

       W 38,114,206        37,264,750  
     

 

 

     

 

 

  

Total Liabilities and Equity

       W 238,969,668        239,714,965  
     

 

 

     

 

 

  

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

 

2

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of comprehensive income or loss

For each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

In millions of won, except per share information    Note      March 31, 2024     March 31, 2023  

Sales

      4,34,44,46       

Sales of goods

      2      W 22,850,748       21,143,505  

Sales of services

         167,700       149,162  

Sales of construction services

      20        85,506       119,520  

Revenue related to contributions for construction

      28        188,789       181,835  
     

 

 

    

 

 

  
        23,292,743       21,594,022  
     

 

 

    

 

 

  

Cost of sales

      14,25,42,46       

Cost of sales of goods

         (21,045,353 )      (26,788,175 ) 

Cost of sales of services

         (127,530 )      (127,039 ) 

Cost of sales of construction services

         (130,304 )      (164,780 ) 
     

 

 

    

 

 

  
        (21,303,187 )      (27,079,994 ) 
     

 

 

    

 

 

  

Gross profit (loss)

         1,989,556       (5,485,972 ) 

Selling and administrative expenses

      25,35,42,46        (690,213 )      (691,587 ) 
     

 

 

    

 

 

  

Operating profit (loss)

      4        1,299,343       (6,177,559 ) 

Other income

      36        125,394       89,736  

Other expenses

      36        (102,516 )      (21,070 ) 

Other gains, net

      37        25,064       13,264  

Finance income

      5,12,38        987,226       697,215  

Finance expenses

      5,12,39        (2,001,253 )      (1,697,817 ) 

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

      4,16,17       

Gain on valuation of investments in associates and joint ventures

         298,870       274,525  

Gain on disposal of investments in associates and joint ventures

         185,339       9,473  

Loss on valuation of investments in associates and joint ventures

         (79,682 )      (42,614 ) 
     

 

 

    

 

 

  
        404,527       241,384  
     

 

 

    

 

 

  

Profit (loss) before income tax

         737,785       (6,854,847 ) 

Income tax benefit (expense)

      40        (141,850 )      1,943,614  
     

 

 

    

 

 

  

Profit (loss) for the period

       W 595,935       (4,911,233 ) 

(Continued)

 

3

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of comprehensive income or loss, Continued

For each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

In millions of won, except per share information    Note      March 31, 2024     March 31, 2023  

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 plans

      25,31      W (33,665 )      (170,648 ) 

Share of other comprehensive income of associates and joint ventures

      31        635       4,024  

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

      33        66,174       (56,874 ) 

Items that may be reclassified subsequently to profit or loss:

        

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

      5,12,33        1,501       3,614  

Foreign currency translation of foreign operations

      33        35,109       23,485  

Share of other comprehensive income of associates and joint ventures

      33        249,513       110,590  
     

 

 

    

 

 

  

Other comprehensive income (loss) for the period

         319,267       (85,809 ) 
     

 

 

    

 

 

  

Total comprehensive income (loss) for the period

       W 915,202       (4,997,042 ) 
     

 

 

    

 

 

  

Profit (loss) attributable to:

      43       

Owners of the controlling company

       W 561,462       (4,946,503 ) 

Non-controlling interests

         34,473       35,270  
     

 

 

    

 

 

  
      W 595,935       (4,911,233 ) 
     

 

 

    

 

 

  

Total comprehensive income (loss) attributable to:

        

Owners of the controlling company

       W 857,341       (5,026,031 ) 

Non-controlling interests

         57,861       28,989  
     

 

 

    

 

 

  
      W 915,202       (4,997,042 ) 
     

 

 

    

 

 

  

Earnings (losses) per share (in won)

      43       

Basic and diluted earnings (losses) per share

       W 875       (7,705 ) 

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 each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

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

Balance as of January 1, 2023

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

Total comprehensive loss for the period

              

Loss for the period

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

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

              

Remeasurements of defined benefit plans, net of tax

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

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

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

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

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

Items that may be reclassified subsequently to profit or loss:

              

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

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

Foreign currency translation of foreign operations, net of tax

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

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

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

Transactions with owners of the Group, recognized directly in equity

              

Dividends paid

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

Additional paid-in capital and others

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

Transactions between consolidated entities

      —         —        34       34       —        34  

Changes in consolidation scope

      —         —        (47 )      (47 )      384       337  

Dividends paid for hybrid bonds

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

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of March 31, 2023

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

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(Continued)

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of changes in equity, Continued

For each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

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

Balance as of January 1, 2024

    W 4,053,578        16,338,262       15,453,203       35,845,043       1,419,707       37,264,750  

Total comprehensive income for the period

              

Profit for the period

      —         561,462       —        561,462       34,473       595,935  

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

              

Remeasurements of defined benefit plans, net of tax

      —         (35,182 )      —        (35,182 )      1,517       (33,665 ) 

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

      —         635       —        635       —        635  

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

      —         —        66,173       66,173       1       66,174  

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

      —         —        1,089       1,089       412       1,501  

Foreign currency translation of foreign operations, net of tax

      —         —        13,651       13,651       21,458       35,109  

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

      —         —        249,513       249,513       —        249,513  

Transactions with owners of the Group, recognized directly in equity

              

Dividends paid

      —         —        —        —        (57,926 )      (57,926 ) 

Issuance of shares of capital by subsidiaries and others

      —         —        —        —        (5,296 )      (5,296 ) 

Transactions between consolidated entities

      —         —        29       29       —        29  

Dividends paid for hybrid bonds

      —         —        —        —        (2,553 )      (2,553 ) 

Others

              

Transfer of revaluation reserve

      —         586,394       (586,394 )      —        —        —   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of March 31, 2024

    W 4,053,578        17,451,571       15,197,264       36,702,413       1,411,793       38,114,206  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

 

6

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of cash flows

For each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

In millions of won    March 31, 2024     March 31, 2023  

Cash flows from operating activities

     

Profit (loss) for the period

    W 595,935       (4,911,233 ) 
  

 

 

    

 

 

  

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

     

Income tax expense (benefit)

      141,850       (1,943,614 ) 

Depreciation

      3,512,295       3,207,974  

Amortization

      40,504       41,410  

Employee benefit expense

      101,376       87,019  

Bad debt expense

      12,721       1,797  

Interest expense

      1,151,729       1,048,078  

Loss on disposal of financial assets

      27       217  

Loss on disposal of property, plant and equipment

      17,983       11,304  

Loss on abandonment of property, plant and equipment

      37,646       46,118  

Loss on impairment of property, plant and equipment

      —        2,021  

Loss on impairment of intangible assets

      —        283  

Loss on disposal of intangible assets

      110       57  

Increase in provisions

      484,318       644,751  

Loss on foreign currency translation, net

      733,108       461,077  

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

      (36,671 )      (17,695 ) 

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

      238       974  

Loss on derivatives

      (710,682 )      (395,640 ) 

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

      (219,188 )      (231,911 ) 

Gain on disposal of financial assets

      (8,108 )      (2,493 ) 

Gain on disposal of property, plant and equipment

      (34,053 )      (6,567 ) 

Gain on disposal of intangible assets

      (11 )      —   

Gain on disposal of associates and joint ventures

      (185,339 )      (9,473 ) 

Interest income

      (118,441 )      (102,946 ) 

Dividends income

      (78 )      (189 ) 

Others, net

      8,642       (10,271 ) 
  

 

 

    

 

 

  
     4,929,976       2,832,281  
  

 

 

    

 

 

  

Changes in operating assets and liabilities:

     

Decrease in trade receivables

      1,375,173       1,059,311  

Increase (decrease) in non-trade receivables

      (176,741 )      189,100  

Increase (decrease) in accrued income

      (82,997 )      1,462  

Decrease in other receivables

      25,851       20,152  

Increase in other current assets

      (211,654 )      (123,918 ) 

Increase in inventories

      (206,012 )      (200,121 ) 

Increase (decrease) in other non-current assets

      (14,620 )      42,191  

Increase (decrease) in Trade payables

      213,202       (408,581 ) 

Increase (decrease) in non-trade payables

      508,405       (970,172 ) 

Increase (decrease) in accrued expenses

      (281,804 )      16,496  

Increase in other current liabilities

      709,886       640,281  

Increase in other non-current liabilities

      124,094       13,939  

Decrease in investments in associates and joint ventures (dividends received)

      72,620       71,912  

Decrease in provisions

      (218,046 )      (474,012 ) 

Payments of retirement benefits

      (28,549 )      (101,783 ) 

Contributions to plan assets

      (180 )      (532 ) 
  

 

 

    

 

 

  
   W 1,808,628       (224,275 ) 
  

 

 

    

 

 

  

 

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim consolidated statements of cash flows, Continued

For the three-month periods ended March 31, 2024 and 2023 (Unaudited)

 

In millions of won    March 31, 2024     March 31, 2023  

Cash generated from (used in) operating activities

    W 7,334,539       (2,303,227 ) 

Dividends received

      78       28,875  

Interest paid

      (1,130,112 )      (1,044,659 ) 

Interest received

      85,509       73,938  

Income taxes paid

      (57,495 )      (204,919 ) 
  

 

 

    

 

 

  

Net cash flows provided by (used in) operating activities

      6,232,519       (3,449,992 ) 
  

 

 

    

 

 

  

Cash flows from investing activities

     

Proceeds from disposals of investments in associates and joint ventures

      199,718       1,196  

Acquisition of investments in associates and joint ventures

      (130,524 )      (295,381 ) 

Proceeds from disposals of property, plant and equipment

      120,728       82,926  

Acquisition of property, plant and equipment

      (3,709,684 )      (3,440,345 ) 

Proceeds from disposals of intangible assets

      341       1  

Acquisition of intangible assets

      (21,460 )      (28,583 ) 

Proceeds from disposals of financial assets

      1,690,588       2,856,077  

Acquisition of financial assets

      (1,733,010 )      (809,068 ) 

Increase in loans

      (37,155 )      (26,484 ) 

Collection of loans

      70,040       21,583  

Increase in deposits

      (56,981 )      (80,879 ) 

Decrease in deposits

      49,169       60,037  

Receipt of government grants

      11,564       9,540  

Net cash outflows from changes in consolidation scope

      —        (29,037 ) 

Other cash outflows from investing activities, net

      (79,289 )      (91,526 ) 
  

 

 

    

 

 

  

Net cash flows used in investing activities

      (3,625,955 )      (1,769,943 ) 
  

 

 

    

 

 

  

Cash flows from financing activities

     

Repayment of short-term borrowings, net

      (4,161,658 )      (2,899,586 ) 

Proceeds from long-term borrowings and debt securities

      3,232,366       9,998,430  

Repayment of long-term borrowings and debt securities

      (3,021,359 )      (1,868,776 ) 

Payment of lease liabilities

      (184,957 )      (163,649 ) 

Settlement of derivative instruments, net

      106,862       (4,707 ) 

Change in non-controlling interests

      (331 )      (545 ) 

Dividends paid for hybrid bonds

      (2,553 )      (2,553 ) 

Other cash outflows from financing activities, net

      —        (991 ) 
  

 

 

    

 

 

  

Net cash flows provided by (used in) financing activities

      (4,031,630 )      5,057,623  
  

 

 

    

 

 

  

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

      (1,425,066 )      (162,312 ) 

Effect of exchange rate fluctuations on cash held

      32,519       23,100  
  

 

 

    

 

 

  

Net decrease in cash and cash equivalents

      (1,392,547 )      (139,212 ) 

Cash and cash equivalents as of January 1, 2024 and 2023

      4,342,887       3,234,780  
  

 

 

    

 

 

  

Cash and cash equivalents as of March 31, 2024 and 2023

    W 2,950,340       3,095,568  
  

 

 

    

 

 

  

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

 

8

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the interim consolidated financial statements

March 31, 2024 and 2023 (unaudited)

 

1.

Reporting Entity (Description of the controlling company)

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

As of March 31, 2024, KEPCO’s share capital amounts to W3,209,820 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 87,215,498 shares (13.59%) as of January 8, 2024, 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 instruments at fair value through profit or loss;

 

  •  

financial instruments at fair value through other comprehensive income or loss;

 

  •  

derivative financial instruments are measured at fair value; and

 

  •  

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.

 

9

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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.

Meanwhile, the Group considers climate-related risks resulting from climate change and the establishment of a global greenhouse gas reduction implementation system in its estimates and assumptions. Climate-related risks increase the uncertainty of the estimates and assumptions considered in various items of the financial statements, and the Group carefully monitors climate-related changes and developments, such as new climate-related legislation, even if it does not have a material impact on current measurements.

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, Intangible assets other than goodwill 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.

 

10

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

2.

Basis of Preparation, Continued

 

(4)

Use of estimates and judgments, continued

 

  (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).

 

  (v)

Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of March 31, 2024 and 2023 are W2,054,355 million and W1,782,255 million, respectively.

 

  (vi)

Construction contracts

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

 

11

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

2.

Basis of Preparation, Continued

 

(5)

Changes in accounting policies

Changes in accounting standards effective from January 1, 2024 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 have been issued but not yet effective.

Amendments to KIFRS 1007 and KIFRS 1107 - Supplier Finance Arrangements

The amendments clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The transition rules clarify that an entity is not required to provide the disclosures in any interim periods in the year of initial application of the amendments.

Amendments to KIFRS 1116 - Lease Liability in a Sale and Leaseback

The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains.

Amendments to KIFRS 1001 - Classification of Liabilities as Current or Non-current

The amendments to paragraphs 69 to 76 of KIFRS 1001 specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

 

  •  

what is meant by a right to defer settlement;

 

  •  

that a right to defer must exist at the end of the reporting period;

 

  •  

that classification is unaffected by the likelihood that an entity will exercise its deferral right; and

 

  •  

that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

In addition, a requirement has been introduced whereby an entity must disclose when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months.

 

12

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

3.

Material Accounting Policies

The accounting policies applied by the Group in these 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, 2023, 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 in the same way that consolidated operating profit is determined under KIFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arm’s-length basis at market prices that would be applicable to an independent third party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

 

13

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(2)

Financial information of the segments for each of the three-month periods ended March 31, 2024 and 2023, respectively, is as follows:

 

In millions of won                                                

March 31, 2024

  

Segment

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

Transmission and distribution

   W 22,782,168       500,086       22,282,082       1,261,893       1,081,830       28,101       741,673       178,758  

Electric power generation (Nuclear)

     2,697,185       2,647,385       49,800       (277,567 )      1,352,647       18,791       179,407       (5,618 ) 

Electric power generation (Non-nuclear)

     7,849,482       7,133,959       715,523       306,773       1,066,695       20,201       186,822       46,164  

Plant maintenance & engineering service

     782,106       679,651       102,455       99,109       38,350       5,756       1,947       185,223  

Others

     527,088       384,205       142,883       12,238       61,180       59,009       61,269       —   

Consolidation adjustments

     (11,345,286 )      (11,345,286 )      —        (103,103 )      (47,903 )      (13,417 )      (19,389 )      —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  W 23,292,743       —        23,292,743       1,299,343       3,552,799       118,441       1,151,729       404,527  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
In millions of won                                                

March 31, 2023

  

Segment

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

Transmission and distribution

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

Electric power generation (Nuclear)

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

Electric power generation (Non-nuclear)

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

Plant maintenance & engineering service

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

Others

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

Consolidation adjustments

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

14

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(3)

Information related to segment assets and segment liabilities as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won       

March 31, 2024

  

Segment

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

Transmission and distribution

    W 135,726,531        6,276,641        2,065,679        116,470,194  

Electric power generation (Nuclear)

      70,450,811        169,397        786,846        45,889,841  

Electric power generation (Non-nuclear)

      65,414,241        3,776,318        811,597        37,724,862  

Plant maintenance & engineering service

      4,621,749        1,688        36,044        1,827,463  

Others

      13,892,533        —         87,616        6,540,878  

Consolidation adjustments

      (51,136,197 )       —         (20,977 )       (7,597,776 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 238,969,668        10,224,044        3,766,805        200,855,462  
  

 

 

     

 

 

     

 

 

     

 

 

  
In millions of won       

December 31, 2023

  

Segment

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

Transmission and distribution

    W 138,838,342        5,872,000        7,636,677        120,181,250  

Electric power generation (Nuclear)

      70,535,018        169,155        3,070,528        45,660,916  

Electric power generation (Non-nuclear)

      66,265,884        3,567,345        3,490,863        38,415,202  

Plant maintenance & engineering service

      4,271,409        54,088        203,352        1,549,863  

Others

      13,378,229        —         736,155        6,480,959  

Consolidation adjustments

      (53,573,917 )       —         (390,686 )       (9,837,975 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 239,714,965        9,662,588        14,746,889        202,450,215  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

15

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

4.

Segment, Geographic and Other Information, Continued

 

(4)

Geographic information

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

 

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

Geographical unit

    March 31, 2024      March 31, 2023      March 31, 2024      December 31, 2023  

Domestic

    W 23,088,796        21,376,922        187,922,683        186,384,115  

Overseas (*1)

      203,947        217,100        5,049,435        4,822,845  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 23,292,743        21,594,022        192,972,118        191,206,960  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*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 each of the three-month periods ended March 31, 2024 and 2023.

 

16

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

5.

Classification of Financial Instruments

 

(1)

Classification of financial assets as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024  
     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

    W —         —         2,950,340        —         2,950,340  

Current financial assets

               

Current financial assets at fair value through profit or loss

      2,092,538        —         —         —         2,092,538  

Current financial assets at amortized costs

      —         —         28,917        —         28,917  

Current derivative assets

      303,594        —         —         44,306        347,900  

Other financial assets

      —         —         749,268        —         749,268  

Trade and other receivables

      —         —         10,545,713        —         10,545,713  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     2,396,132        —         14,274,238        44,306        16,714,676  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

               

Non-current financial assets

               

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

      673,541        —         —         —         673,541  

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

      —         568,331        —         —         568,331  

Non-current financial assets at amortized costs

      —         —         9,878        —         9,878  

Non-current derivative assets

      775,939        —         —         329,288        1,105,227  

Other financial assets

      —         —         1,684,103        —         1,684,103  

Trade and other receivables

      —         —         2,262,785        —         2,262,785  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     1,449,480        568,331        3,956,766        329,288        6,303,865  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,845,612        568,331        18,231,004        373,594        23,018,541  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(1)

Classification of financial assets as of March 31, 2024 and December 31, 2023 is as follows, continued:

 

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

Current assets

               

Cash and cash equivalents

    W —         —         4,342,887        —         4,342,887  

Current financial assets

               

Current financial assets at fair value through profit or loss

      2,054,021        —         —         —         2,054,021  

Current financial assets at amortized costs

      —         —         28,905        —         28,905  

Current derivative assets

      227,434        —         —         80,298        307,732  

Other financial assets

      —         —         716,739        —         716,739  

Trade and other receivables

      —         —         11,985,735        —         11,985,735  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     2,281,455        —         17,074,266        80,298        19,436,019  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

               

Non-current financial assets

               

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

      657,264        —         —         —         657,264  

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

      —         502,443        —         —         502,443  

Non-current financial assets at amortized costs

      —         —         9,938        —         9,938  

Non-current derivative assets

      503,514        —         —         189,148        692,662  

Other financial assets

      —         —         1,683,907        —         1,683,907  

Trade and other receivables

      —         —         2,193,587        —         2,193,587  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     1,160,778        502,443        3,887,432        189,148        5,739,801  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,442,233        502,443        20,961,698        269,446        25,175,820  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

18

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(2)

Classification of financial liabilities as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024  
     Financial liabilities at
fair value through
profit or loss		      Financial liabilities
recognized at
amortized cost		      Derivative liabilities
(applying hedge
accounting)		      Total  

Current liabilities

            

Borrowings

    W —         12,684,914        —         12,684,914  

Debt securities

      —         29,478,269        —         29,478,269  

Derivative liabilities

      30,331        —         —         30,331  

Trade and other payables

      —         9,344,187        —         9,344,187  
  

 

 

     

 

 

     

 

 

     

 

 

  
     30,331        51,507,370        —         51,537,701  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current liabilities

            

Borrowings

      —         3,484,983        —         3,484,983  

Debt securities

      —         84,784,718        —         84,784,718  

Derivative liabilities

      269,368        —         4,921        274,289  

Trade and other payables

      —         4,948,466        —         4,948,466  
  

 

 

     

 

 

     

 

 

     

 

 

  
     269,368        93,218,167        4,921        93,492,456  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 299,699        144,725,537        4,921        145,030,157  
  

 

 

     

 

 

     

 

 

     

 

 

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

Current liabilities

            

Borrowings

    W —         16,446,821        —         16,446,821  

Debt securities

      —         24,674,526        —         24,674,526  

Derivative liabilities

      18,379        —         —         18,379  

Trade and other payables

      —         9,089,973        —         9,089,973  
  

 

 

     

 

 

     

 

 

     

 

 

  
     18,379        50,211,320        —         50,229,699  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current liabilities

            

Borrowings

      —         3,392,831        —         3,392,831  

Debt securities

      —         89,117,652        —         89,117,652  

Derivative liabilities

      410,291        —         23,564        433,855  

Trade and other payables

      —         4,981,957        —         4,981,957  
  

 

 

     

 

 

     

 

 

     

 

 

  
     410,291        97,492,440        23,564        97,926,295  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 428,670        147,703,760        23,564        148,155,994  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

19

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

5.

Classification of Financial Instruments, Continued

 

(3)

Classification of comprehensive income (loss) from financial instruments for each of the three-month periods ended March 31, 2024 and 2023 is as follows:

 

In millions of won         March 31, 2024     March 31, 2023  

Cash and cash equivalents

    Interest income    W 33,545       23,050  
   Gain on foreign currency transactions and translations      6,367       9,685  

Financial assets at fair value through profit or loss

    Interest income      17,096       15,253  
   Dividends income      78       150  
   Gain on valuation of financial assets      36,433       16,721  
   Gain on disposal of financial assets      8,081       2,276  

Financial assets at fair value through other comprehensive income

    Dividends income      —        39  

Financial assets at amortized cost

    Interest income      266       265  
   Gain (loss) on foreign currency transactions and translations      1,858       (837 ) 

Loans

    Interest income      9,879       11,947  
   Gain on foreign currency transactions and translations      1,871       209  

Trade and other receivables

    Interest income      45,920       38,851  
   Gain on foreign currency transactions and translations      32,146       22,098  

Short-term financial instruments

    Interest income      4,266       7,436  

Long-term financial instruments

    Interest income      7,385       5,894  
   Gain on foreign currency transactions and translations      1       1  

Other financial assets

    Interest income      84       250  

Financial liabilities carried at amortized cost

    Interest expense of borrowings and debt securities      943,406       846,828  
   Interest expense of trade and other payables      35,662       27,493  
   Interest expense of others      172,661       173,757  
   Other finance income      712       682  
   Other finance expenses      560       502  
   Loss on foreign currency transactions and translations      (795,332 )      (520,803 ) 

Derivative assets (trading)

    Gain on valuation of derivatives      470,717       215,500  
   Gain on transaction of derivatives      34,202       25,392  

Derivatives (applying hedge accounting)

    Gain on valuation of derivatives (profit or loss)      205,663       152,352  
   Gain on valuation of derivatives (equity, before tax)      1,148       6,751  
   Gain on transaction of derivatives      100       2,396  

 

20

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

6.

Restricted Deposits

Restricted deposits as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won         March 31, 2024      December 31, 2023  

Cash and cash equivalents

    Escrow accounts    W 3,056        3,010  
   Deposits for government project and others      35,281        26,969  
   Collateral provided for borrowings      178,827        190,525  
   Collateral provided for lawsuit      54        54  
   Deposits for transmission regional support program      11,906        9,481  
   Deposits for other business purposes      5,661        5,550  

Short-term financial instruments

    Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others      80,500        80,500  
   Collateral provided for borrowings      52,324        24,728  

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

    Decommissioning costs of nuclear power plants      274,347        271,047  

Long-term financial instruments

    Guarantee deposits for banking accounts at oversea branches      37        36  
   Collateral provided for borrowings      28,245        28,245  
   Decommissioning costs of nuclear power plants      655,136        655,030  

Other non-current assets

    Deposits for other business purposes      8,463        7,558  
     

 

 

     

 

 

  
      W 1,333,837        1,302,733  
     

 

 

     

 

 

  

 

7.

Cash and Cash Equivalents

Cash and cash equivalents as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Cash

    W 8,250        14,070  

Other demand deposits

      1,828,839        1,780,548  

Short-term deposits classified as cash equivalents

      900,348        1,107,687  

Short-term investments classified as cash equivalents

      212,903        1,440,582  
  

 

 

     

 

 

  
   W 2,950,340        4,342,887  
  

 

 

     

 

 

  

 

21

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

8.

Trade and Other Receivables

 

(1)

Trade and other receivables as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Gross
amount		      Allowance for
doubtful accounts		      Present value
discount		      Book
value		  

Current assets

            

Trade receivables

    W 9,888,863        (238,214 )       —         9,650,649  

Other receivables

      947,989        (47,733 )       (5,192 )       895,064  
  

 

 

     

 

 

     

 

 

     

 

 

  
     10,836,852        (285,947 )       (5,192 )       10,545,713  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Trade receivables

      211,260        (2,582 )       —         208,678  

Other receivables

      2,147,290        (80,419 )       (12,764 )       2,054,107  
  

 

 

     

 

 

     

 

 

     

 

 

  
     2,358,550        (83,001 )       (12,764 )       2,262,785  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 13,195,402        (368,948 )       (17,956 )       12,808,498  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

Current assets

            

Trade receivables

    W 11,239,601        (230,058 )       —         11,009,543  

Other receivables

      1,034,655        (53,683 )       (4,780 )       976,192  
  

 

 

     

 

 

     

 

 

     

 

 

  
     12,274,256        (283,741 )       (4,780 )       11,985,735  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Trade receivables

      207,668        (2,587 )       —         205,081  

Other receivables

      2,080,830        (80,270 )       (12,054 )       1,988,506  
  

 

 

     

 

 

     

 

 

     

 

 

  
     2,288,498        (82,857 )       (12,054 )       2,193,587  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 14,562,754        (366,598 )       (16,834 )       14,179,322  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

22

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

8.

Trade and Other Receivables, Continued

 

(2)

Other receivables as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Gross
amount		      Allowance for
doubtful accounts		      Present value
discount		      Book
value		  

Current assets

            

Non-trade receivables

    W 370,215        (43,722 )       (53 )       326,440  

Accrued income

      109,751        —         —         109,751  

Deposits

      311,904        (4 )       (5,139 )       306,761  

Finance lease receivables (*1)

      74,898        (2,715 )       —         72,183  

Others

      81,221        (1,292 )       —         79,929  
  

 

 

     

 

 

     

 

 

     

 

 

  
     947,989        (47,733 )       (5,192 )       895,064  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Non-trade receivables

      197,443        (50,678 )       (102 )       146,663  

Accrued income

      12,501        —         —         12,501  

Deposits

      466,462        (263 )       (12,662 )       453,537  

Finance lease receivables (*2)

      1,220,982        (2,370 )       —         1,218,612  

Others

      249,902        (27,108 )       —         222,794  
  

 

 

     

 

 

     

 

 

     

 

 

  
     2,147,290        (80,419 )       (12,764 )       2,054,107  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,095,279        (128,152 )       (17,956 )       2,949,171  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

The gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W125,064 million.

 

(*2)

The gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W951,504 million.

 

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

Current assets

            

Non-trade receivables

    W 393,859        (49,626 )       (53 )       344,180  

Accrued income

      133,033        —         —         133,033  

Deposits

      317,541        (4 )       (4,727 )       312,810  

Finance lease receivables (*1)

      75,661        (2,761 )       —         72,900  

Others

      114,561        (1,292 )       —         113,269  
  

 

 

     

 

 

     

 

 

     

 

 

  
     1,034,655        (53,683 )       (4,780 )       976,192  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Non-trade receivables

      198,453        (54,182 )       (102 )       144,169  

Accrued income

      7,342        —         —         7,342  

Deposits

      441,721        (263 )       (11,952 )       429,506  

Finance lease receivables (*2)

      1,173,500        (2,495 )       —         1,171,005  

Others

      259,814        (23,330 )       —         236,484  
  

 

 

     

 

 

     

 

 

     

 

 

  
     2,080,830        (80,270 )       (12,054 )       1,988,506  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,115,485        (133,953 )       (16,834 )       2,964,698  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

The gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W114,118 million.

(*2)

The gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W943,316 million.

 

(3)

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

 

23

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

8.

Trade and Other Receivables, Continued

 

(4)

Aging analysis of trade receivables as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Trade receivables: (not overdue)

    W 9,775,269        11,120,582  
  

 

 

     

 

 

  

Trade receivables: (impairment reviewed)

      324,854        326,687  
  

 

 

     

 

 

  

Less than 60 days

      5,005        6,403  

60 ~ 90 days

      64,976        55,802  

90 ~ 120 days

      13,268        20,535  

120 days ~ 1 year

      57,327        58,350  

More than 1 year

      184,278        185,597  
  

 

 

     

 

 

  
     10,100,123        11,447,269  

Less: allowance for doubtful accounts

      (240,796 )       (232,645 ) 
  

 

 

     

 

 

  
   W 9,859,327        11,214,624  
  

 

 

     

 

 

  

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

 

(5)

Changes in the allowance for doubtful accounts for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Trade
receivables		      Other
receivables		      Trade
receivables		      Other
receivables		  

Beginning balance

    W 232,645        133,953        199,000        109,453  

Bad debts expense

      11,904        1,903        68,385        24,290  

Write-off

      (2,244 )       (13,742 )       (26,109 )       (4,472 ) 

Reversal

      (1,729 )       —         (5,577 )       (1,942 ) 

Others

      220        6,038        (3,054 )       6,624  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

    W 240,796        128,152        232,645        133,953  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

24

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

9.

Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Financial assets at fair value through profit or loss

            

Beneficiary Certificate

    W 307        109,287        130,363        107,252  

Cooperative

      —         6,869        —         6,735  

Others (*)

      2,092,231        390,941        1,923,658        376,602  
  

 

 

     

 

 

     

 

 

     

 

 

  
     2,092,538        507,097        2,054,021        490,589  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial assets designated as at fair value through profit or loss

            

Debt with embedded derivatives

      —         166,444        —         166,675  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 2,092,538        673,541        2,054,021        657,264  
  

 

 

     

 

 

     

 

 

     

 

 

  

(*) “Others” include MMT which is composed of government bonds, RP (Repurchase Paper), CP (Commercial Paper), etc.

 

25

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income

 

(1)

Changes in financial assets at fair value through other comprehensive income for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Acquisition      Disposal      Valuation     Others      Ending
balance		  

Equity securities

                 

Listed

    W 285,054        —         —         63,732       4        348,790  

Unlisted

      212,762        —         —         (83 )      2,235        214,914  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
     497,816        —         —         63,649       2,239        563,704  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Debt securities

                 

Corporate bond

      4,627        —         —         —        —         4,627  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
   W 502,443        —         —         63,649       2,239        568,331  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Current financial assets at fair value through other comprehensive income

    W —         —         —         —        —         —   

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

      502,443        —         —         63,649       2,239        568,331  

 

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

Equity securities

                

Listed

    W 300,057        430        —        (15,433 )      —         285,054  

Unlisted

      202,243        9,550        (5,332 )      5,445       856        212,762  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
     502,300        9,980        (5,332 )      (9,988 )      856        497,816  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Debt securities

                

Corporate bond

      529        4,080        —        18       —         4,627  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
   W 502,829        14,060        (5,332 )      (9,970 )      856        502,443  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Current financial assets at fair value through other comprehensive income

    W —         —         —        —        —         —   

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

      502,829        14,060        (5,332 )      (9,970 )      856        502,443  

 

26

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Shares      Ownership     Acquisition cost      Book value      Fair value  

Listed

              

Korea District Heating Corp.

      2,264,068        19.55 %    W 173,201        82,865        82,865  

KG Mobility Co., Ltd.

      12,205        0.01 %      428        79        79  

SM Korea Line Corp.

      180        0.00 %      1        —         —   

Namkwang Engineering & Construction Co., Ltd.

      46        0.00 %      15        —         —   

Bumyang Construction Co., Ltd.

      35        0.00 %      2        —         —   

ELCOMTEC Co., Ltd.

      32,875        0.04 %      217        46        46  

PAN Ocean Co., Ltd.

      1,492        0.00 %      14        6        6  

STX Heavy Industries Co., Ltd.

      68,874        0.24 %      537        796        796  

Codes Combine Co., Ltd.

      291        0.00 %      1        1        1  

PT Adaro Energy Tbk.

      480,000,000        1.50 %      65,028        110,030        110,030  

Denison Mines Corp.

      58,284,000        6.53 %      84,134        153,655        153,655  

Fission Uranium Corp.

      100,000        0.01 %      41        96        96  

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        1        1  

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        1,200        1,200  

Aone Alform Co., Ltd.

      2,672        0.04 %      19        4        4  

BDI Co., Ltd. (*3)

      6,391,268        32.54 %      4        5        5  
       

 

 

     

 

 

     

 

 

  
          325,224        348,790        348,790  
       

 

 

     

 

 

     

 

 

  

Unlisted (*1)

              

Set Holding (*2)

      1,100,220        2.50 %      229,255        165,923        165,923  

SGC Greenpower Co., Ltd.

      580,000        5.00 %      2,900        6,249        6,249  

Le Soleil KHNP LLC

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

Ihsung CNI Co., Ltd.

      127,660        4.30 %      1,500        1,937        1,937  

H Robotics Co., Ltd.

      903,601        8.05 %      4,000        5,639        5,639  

Good Tcells Co., Ltd.

      11,364        0.33 %      500        399        399  

IPS Bio Co., Ltd.

      1,975        3.13 %      1,000        897        897  

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        1.64 %      1,000        1,154        1,154  

Fine Powerex Co., Ltd.

      72,633        4.58 %      1,500        1,772        1,772  

Agencore Co., Ltd.

      175,779        8.08 %      2,200        2,200        2,200  

SamHong Machinery Co., Ltd.

      476,192        8.98 %      5,000        5,000        5,000  

Aloha Factory Co., Ltd.

      2,970        3.70 %      1,000        739        739  

Dailyshot Co., Ltd.

      1,695        1.85 %      1,001        1,001        1,001  

Mediquitous Co., Ltd.

      5,080        0.63 %      1,250        1,250        1,250  

Black Materials Co., Ltd.

      37,038        8.31 %      500        500        500  

Monit Co., Ltd.

      166,667        14.29 %      1,000        1,000        1,000  

3i Powergen Inc.

      —         15.00 %      1,482        —         —   

Enersys Co., Ltd.

      9,763        19.62 %      2,050        2,050        2,050  

Kalman Co., Ltd.

      23,172        10.02 %      1,000        1,000        1,000  

Himet Co., Ltd.

      1,754,386        13.93 %      5,000        5,000        5,000  

Gunsan Bio Energy Co., Ltd. (*4)

      200,000        18.87 %      1,000        —         —   

PT. Kedap Sayaaq

      671        10.00 %      18,540        —         —   

Joongang Platec Co., Ltd.

      3,591        0.75 %      72        35        35  

Hwan Young Steel Co., Ltd. and others (*5)

      —         —        12,429        8,793        8,793  
       

 

 

     

 

 

     

 

 

  
          297,555        214,914        214,914  
       

 

 

     

 

 

     

 

 

  

 

27

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won    March 31, 2024  
     Shares      Ownership      Acquisition cost      Book value      Fair value  

Debt securities (*1)

               

Aron Flying Ship Co., Ltd.

      —         —       W 491        547        547  

Ino Platech Co., Ltd.

      —         —         1,080        1,080        1,080  

Daebon Tech Co., Ltd.

      —         —         3,000        3,000        3,000  
        

 

 

     

 

 

     

 

 

  
           4,571        4,627        4,627  
        

 

 

     

 

 

     

 

 

  
         W 627,350        568,331        568,331  
        

 

 

     

 

 

     

 

 

  

 

(*1)

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

(*2)

The Group has estimated the fair value of Set Holding by using the 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 three-month period ended March 31, 2024.

(*3)

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

(*4)

Bankruptcy was declared during the year ended December 31, 2023. The Group cannot hold significant influence due to the appointment of a bankruptcy trustee, so the entity was reclassified as financial assets at fair value through other comprehensive income.

(*5)

Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 430 companies including Hwan Young Steel Co., Ltd.

 

28

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

 

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

Listed

              

Korea District Heating Corp.

      2,264,068        19.55 %    W 173,201        55,356        55,356  

KG Mobility Co., Ltd.

      12,205        0.01 %      428        106        106  

SM Korea Line Corp.

      180        0.00 %      1        —         —   

Namkwang Engineering & Construction Co., Ltd.

      46        0.00 %      15        —         —   

Bumyang Construction Co., Ltd.

      35        0.00 %      2        —         —   

ELCOMTEC Co., Ltd.

      32,875        0.04 %      217        43        43  

PAN Ocean Co., Ltd.

      1,492        0.00 %      14        6        6  

STX Heavy Industries Co., Ltd.

      68,874        0.24 %      537        806        806  

Codes Combine Co., Ltd.

      291        0.00 %      1        1        1  

PT Adaro Energy Tbk.

      480,000,000        1.50 %      65,028        95,505        95,505  

Denison Mines Corp.

      58,284,000        6.54 %      84,134        131,790        131,790  

Fission Uranium Corp.

      100,000        0.01 %      41        105        105  

SangSangin Industry Co., Ltd.

      1,457        0.01 %      38        3        3  

Vitzrosys Co., Ltd.

      399        0.00 %      2        —         —   

EMnI Co., Ltd.

      628        0.00 %      25        1        1  

Vissem electronics, Co., Ltd.

      301        0.00 %      11        1        1  

KC Industry Co., Ltd.

      139        0.00 %      6        —         —   

Aone Alform Co., Ltd.

      2,672        0.04 %      19        4        4  

Ihsung CNI Co., Ltd.

      142,860        4.81 %      1,500        1,327        1,327  

BDI Co., Ltd. (*3)

      6,390,478        32.54 %      —         —         —   
       

 

 

     

 

 

     

 

 

  
          325,220        285,054        285,054  
       

 

 

     

 

 

     

 

 

  

Unlisted (*1)

              

Set Holding (*2)

      1,100,220        2.50 %      229,255        165,923        165,923  

SGC Greenpower Co., Ltd.

      580,000        5.00 %      2,900        6,249        6,249  

Le Soleil KHNP LLC

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

Orano Expansion

      5,742,405        4.72 %      —         —         —   

3i Powergen Inc.

      —         15.00 %      1,482        —         —   

PT. Kedap Sayaaq

      671        10.00 %      18,540        —         —   

Ihsung CNI Co., Ltd.

      127,660        4.30 %      1,500        1,937        1,937  

H Robotics Co., Ltd.

      903,601        8.05 %      4,000        5,639        5,639  

Good Tcells Co., Ltd.

      11,364        0.33 %      500        399        399  

IPS Bio Co., Ltd.

      1,975        3.13 %      1,000        897        897  

Nine B Co., Ltd.

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

Common Computer Co., Ltd.

      3,856        1.64 %      1,000        1,154        1,154  

Fine Powerex Co., Ltd.

      72,633        4.58 %      1,500        1,772        1,772  

Agencore Co., Ltd.

      175,779        8.32 %      2,200        2,200        2,200  

SamHong Machinery Co., Ltd.

      476,192        8.98 %      5,000        5,000        5,000  

Aloha Factory Co., Ltd.

      2,970        3.70 %      1,000        739        739  

Dailyshot Co., Ltd.

      1,695        1.85 %      1,001        1,001        1,001  

Mediquitous Co., Ltd.

      5,080        0.64 %      1,250        1,250        1,250  

Black Materials Co., Ltd.

      37,038        8.31 %      500        500        500  

Monit Co., Ltd.

      166,667        14.29 %      1,000        1,000        1,000  

Enersys Co., Ltd.

      9,763        19.62 %      2,050        2,050        2,050  

Kalman Co., Ltd.

      23,172        10.02 %      1,000        1,000        1,000  

Himet Co., Ltd.

      1,754,386        13.93 %      5,000        5,000        5,000  

Gunsan Bio Energy Co., Ltd. (*4)

      200,000        18.87 %      1,000        —         —   

Joongang Platec Co., Ltd.

      3,591        0.75 %      72        35        35  

Hwan Young Steel Co., Ltd. and others (*5)

      —         —        10,501        6,641        6,641  
       

 

 

     

 

 

     

 

 

  
          295,627        212,762        212,762  
       

 

 

     

 

 

     

 

 

  

 

29

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

 

(2)

Financial assets at fair value through other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

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

Debt securities (*1)

               

Aron Flying Ship Co., Ltd.

      —         —       W 491        547        547  

Ino Platech Co., Ltd.

      —         —         1,080        1,080        1,080  

Daebon Tech Co., Ltd.

      —         —         3,000        3,000        3,000  
        

 

 

     

 

 

     

 

 

  
           4,571        4,627        4,627  
        

 

 

     

 

 

     

 

 

  
         W 625,418        502,443        502,443  
        

 

 

     

 

 

     

 

 

  

 

(*1)

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

(*2)

The Group has estimated the fair value of Set Holding by using the 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 year ended December 31, 2023.

(*3)

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

(*4)

Bankruptcy was declared during the year ended December 31, 2023. The Group cannot hold significant influence due to the appointment of a bankruptcy trustee, so the entity was reclassified as financial assets at fair value through other comprehensive income.

(*5)

Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 415 companies including Hwan Young Steel Co., Ltd.

 

30

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

11.

Financial Assets at Amortized Cost

Financial assets at amortized cost as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Financial assets
at amortized cost		      Book
value		  

Government bonds

    W 1,521        1,521  

Others

      37,274        37,274  
  

 

 

     

 

 

  
   W 38,795        38,795  
  

 

 

     

 

 

  

Current

    W 28,917        28,917  

Non-current

      9,878        9,878  
     
In millions of won    December 31, 2023  
     Financial assets
at amortized cost		      Book
value		  

Government bonds

    W 1,528        1,528  

Others

      37,315        37,315  
  

 

 

     

 

 

  
   W 38,843        38,843  
  

 

 

     

 

 

  

Current

    W 28,905        28,905  

Non-current

      9,938        9,938  

 

31

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives

 

(1)

Derivatives as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Derivative assets

            

Currency forward

    W 32,437        —         18,019        —   

Currency swap

      296,129        908,339        274,782        527,701  

Interest rate swap

      3,530        161,564        12,124        129,570  

Others (*2,3)

      15,804        35,324        2,807        35,391  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 347,900        1,105,227        307,732        692,662  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative liabilities

            

Currency forward

    W —         —         4,755        —   

Currency swap

      17,887        144,839        6,867        287,824  

Interest rate swap

      —         36,000        —         48,238  

Others (*1,2)

      12,444        93,450        6,757        97,793  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 30,331        274,289        18,379        433,855  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

In relation to the agreement to purchase hybrid bonds issued by Samcheok Eco Materials Co., Ltd., an associate of the Group, the performance obligation as of March 31, 2024 which amounts to W18,752 million (W18,752 million for the prior year) to the underwriter of the bonds was recorded as other derivative liabilities. In addition, the Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and 4 other third party investors, and recorded the related fair value as of March 31, 2024 which amounts to W6,253 million (W5,986 million for the prior year) as other derivative liabilities.

(*2)

The Group recorded the fair value of derivatives in accordance with the shareholders’ agreement of its associate, Hyundai Green Power Co., Ltd., as other derivatives. In addition, the fair value of the derivatives regarding the power sales agreement of its subsidiary, Elara Energy Project, LLC, were recorded as other derivatives.

(*3)

The Group recorded the fair value of derivatives regarding the Power Purchase Agreement (“PPA”) of its subsidiary Columboola Solar Farm Hold Co Pty., Ltd. as other derivatives.

 

32

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(2)

Currency forward contracts which are not designated as hedging instruments as of March 31, 2024 are as follows:

 

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

Counterparty

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

Korea Development Bank

      2024.02.29        2024.04.02      W 13,323        USD 10,000      W 1,332.30  

Shinhan Bank

      2024.02.29        2024.04.03        13,321        USD 10,000        1,332.10  

Kookmin Bank

      2024.03.12        2024.04.05        15,691        USD 12,000        1,307.60  

Woori Bank

      2024.03.06        2024.04.08        10,669        USD 8,000        1,333.60  

Standard Chartered

      2024.03.08        2024.04.11        17,203        USD 13,000        1,323.30  

JP Morgan

      2024.03.12        2024.04.15        15,715        USD 12,000        1,309.60  

Nonghyup Bank

      2024.03.15        2024.04.17        3,940        USD 3,000        1,313.30  

Shinhan Bank

      2024.03.15        2024.04.18        15,899        USD 12,000        1,324.90  

Nonghyup Bank

      2024.03.21        2024.04.12        15,934        USD 12,000        1,327.90  

Korea Development Bank

      2024.01.25        2024.04.08        10,645        USD 8,000        1,330.60  

Busan Bank

      2024.01.25        2024.04.08        6,654        USD 5,000        1,330.73  

Hana Bank

      2024.01.25        2024.04.08        7,985        USD 6,000        1,330.90  

JP Morgan

      2024.01.30        2024.04.12        14,582        USD 11,000        1,325.65  

SMBC

      2024.02.01        2024.04.12        7,967        USD 6,000        1,327.85  

JP Morgan

      2024.02.07        2024.04.23        6,603        USD 5,000        1,320.50  

Mizuho Bank

      2024.02.13        2024.05.08        9,259        USD 7,000        1,322.65  

JP Morgan

      2024.03.06        2024.04.26        7,996        USD 6,000        1,332.70  

MUFG

      2024.03.06        2024.05.13        9,319        USD 7,000        1,331.30  

Mizuho Bank

      2024.03.11        2024.04.23        13,118        USD 10,000        1,311.75  

Shinhan Bank

      2024.03.12        2024.04.26        6,541        USD 5,000        1,308.26  

Mizuho Bank

      2024.03.18        2024.05.23        6,643        USD 5,000        1,328.59  

Hana Bank

      2024.03.19        2024.04.26        21,379        USD 16,000        1,336.20  

Mizuho Bank

      2024.03.19        2024.04.26        12,026        USD 9,000        1,336.25  

MUFG

      2024.03.22        2024.04.23        8,006        USD 6,000        1,334.30  

Mizuho Bank

      2024.03.22        2024.04.23        11,342        USD 8,500        1,334.35  

Morgan Stanley

      2024.03.27        2024.04.23        5,377        USD 4,000        1,344.25  

Morgan Stanley

      2024.03.27        2024.04.26        5,376        USD 4,000        1,344.05  

Mizuho Bank

      2024.03.28        2024.04.26        9,417        USD 7,000        1,345.35  

JP Morgan

      2024.03.28        2024.05.08        2,689        USD 2,000        1,344.50  

Morgan Stanley

      2024.03.28        2024.05.08        16,133        USD 12,000        1,344.40  

JP Morgan

      2024.03.29        2024.04.01        93        USD 70        1,328.75  

JP Morgan

      2024.03.04        2024.04.08        3,626        USD 2,730        1,328.05  

Hana Bank

      2024.03.08        2024.04.12        6,611        USD 5,000        1,322.15  

Woori Bank

      2024.03.08        2024.04.12        6,606        USD 5,000        1,321.25  

Mizuho Bank

      2024.03.08        2024.04.12        6,605        USD 5,000        1,321.05  

JP Morgan

      2024.03.11        2024.04.15        6,569        USD 5,000        1,313.80  

Kookmin Bank

      2024.03.11        2024.04.19        6,564        USD 5,000        1,312.84  

Hana Bank

      2024.03.11        2024.04.15        6,558        USD 5,000        1,311.58  

Nonghyup Bank

      2024.03.11        2024.04.15        6,539        USD 5,000        1,307.70  

JP Morgan

      2024.03.21        2024.04.25        6,625        USD 5,000        1,324.90  

Nonghyup Bank

      2024.03.21        2024.04.25        6,618        USD 5,000        1,323.60  

MUFG

      2024.03.21        2024.04.25        6,615        USD 5,000        1,323.00  

Korea Citi Bank

      2024.03.04        2024.04.08        5,313        USD 4,000        1,328.19  

Korea Citi Bank

      2024.03.04        2024.04.08        10,614        USD 8,000        1,326.77  

JP Morgan

      2024.03.06        2024.04.08        302        USD 227        1,328.30  

JP Morgan

      2024.03.07        2024.04.12        2,654        USD 2,000        1,327.20  

MUFG

      2024.03.11        2024.04.23        2,627        USD 2,000        1,313.70  

SMBC

      2024.03.07        2024.04.12        5,304        USD 4,000        1,326.00  

SMBC

      2024.03.28        2024.04.23        5,368        USD 4,000        1,341.98  

SMBC

      2024.03.08        2024.04.23        6,604        USD 5,000        1,320.83  

Nonghyup Bank

      2024.03.07        2024.04.12        2,653        USD 2,000        1,326.30  

Hana Bank

      2024.03.08        2024.04.12        1,320        USD 1,000        1,319.95  

HSBC

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

Hana Bank

      2024.03.07        2024.05.23        5,621        USD 4,247        1,323.53  

MUFG

      2024.03.11        2024.05.27        7,860        USD 6,000        1,309.95  

Busan Bank

      2024.03.11        2024.05.27        6,550        USD 5,000        1,310.08  

Woori Bank

      2024.03.11        2024.05.27        5,241        USD 4,000        1,310.15  

JP Morgan

      2024.03.11        2024.05.27        6,550        USD 5,000        1,310.00  

Shinhan Bank

      2024.03.26        2024.06.10        8,001        USD 6,000        1,333.50  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(3)

Currency swap contracts which are not designated as hedging instruments as of March 31, 2024 are as follows:

 

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

Counterparty

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

Standard Chartered

      2014~2029      W 102,470        USD 100,000      3.14%   3.57%   W 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      4.68%   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  

Hana Bank

      2023~2026        256,000        USD 200,000      3.97%   5.38%     1,280.00  

Shinhan Bank

      2023~2026        192,000        USD 150,000      3.99%   5.38%     1,280.00  

Kookmin Bank

      2023~2026        128,000        USD 100,000      4.03%   5.38%     1,280.00  

Korea Development Bank

      2023~2026        256,000        USD 200,000      4.04%   5.38%     1,280.00  

Bank of America

      2023~2026        128,000        USD 100,000      4.04%   5.38%     1,280.00  

Standard Chartered

      2023~2026        128,000        USD 100,000      4.04%   5.38%     1,280.00  

Woori Bank

      2023~2026        192,000        USD 150,000      4.05%   5.38%     1,280.00  

Shinhan Bank

      2024~2027        133,060        USD 100,000      3.53%   4.88%     1,330.60  

Kookmin Bank

      2024~2027        133,060        USD 100,000      3.53%   4.88%     1,330.60  

Korea Development Bank

      2024~2027        864,890        USD 650,000      3.53%   4.88%     1,330.60  

Bank of America

      2024~2027        133,060        USD 100,000      3.53%   4.88%     1,330.60  

Standard Chartered

      2024~2027        133,060        USD 100,000      3.53%   4.88%     1,330.60  

IBKS Securities Co., Ltd.

      2024~2027        199,590        USD 150,000      3.53%   4.88%     1,330.60  

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 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  

 

34

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(3)

Currency swap contracts which are not designated as hedging instruments as of March 31, 2024 are as follows, continued:

 

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

Counterparty

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

Korea Development Bank

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

Hana Bank

      2024~2028        128,940        USD 100,000      3.73%   5.00%     1,289.40  

JP Morgan

      2024~2028        128,940        USD 100,000      3.85%   5.00%     1,289.40  

Korea Development Bank

      2024~2028        257,880        USD 200,000      3.80%   5.00%     1,289.40  

Korea Development Bank

      2024~2028        128,940        USD 100,000      3.69%   5.00%     1,289.40  

HSBC

      2019~2024        USD 205,500        AUD 300,000      3M SOFR + 1.04%   3M BBSW + 0.97%     USD 0.69  

 

35

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(4)

Currency swap contracts which are designated as hedging instruments as of March 31, 2024 are as follows:

 

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

Counterparty

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

Kookmin Bank

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

Shinhan Bank

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

Hana Bank

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

Korea Development Bank

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

Hana Bank

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

Woori Bank

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

Nomura

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

Nomura

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

Kookmin Bank

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

Korea Development Bank

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

Hana Bank

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

Korea Development Bank

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

Woori Bank

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

JP Morgan

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

Korea Development Bank

      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  

Shinhan Bank

      2023~2026        132,930        USD 100,000      4.07%   5.38%     1,329.30  

Nonghyup Bank

      2023~2026        132,930        USD 100,000      4.05%   5.38%     1,329.30  

Kookmin Bank

      2023~2026        132,930        USD 100,000      4.07%   5.38%     1,329.30  

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  

Woori Bank

      2023~2028        259,000        USD 200,000      3.83%   4.88%     1,295.00  

Korea Development Bank

      2023~2028        129,500        USD 100,000      3.85%   4.88%     1,295.00  

Bank of America

      2023~2028        64,750        USD 50,000      3.85%   4.88%     1,295.00  

 

36

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(5)

Interest rate swap contracts which are not designated as hedging instruments as of March 31, 2024 are as follows:

 

In millions of won and thousands of foreign currencies                  Contract interest rate per annum

Counterparty

    Contract year      Contract
amount		      Pay    Receive

Nomura (*1)

      2018~2038      W 30,000      3M CD + 0.10%    3.75%

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%

Hana Bank

      2023~2028        200,000      3.95%    3M CD + 0.50%

Shinhan Bank

      2024~2029        200,000      3.84%    3M CD + 0.50%

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      3M SOFR    3.71%

Mizuho Bank

      2022~2048        USD 155,941      3M SOFR    1.05%

Mizuho Bank

      2022~2024        USD 112,194      1M SOFR    1.80%

Rabobank

      2022~2036        USD 37,130      1.83%    6M SOFR

Mizuho Capital Markets LLC

      2021~2045        USD 89,100      5.38%    1.14%

 

(*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.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

12.

Derivatives, Continued

 

(6)

Interest rate swap contracts which are designated as hedging instruments as of March 31, 2024 are as follows:

 

In thousands of USD                  Contract interest rate per annum  

Counterparty

    Contract year      Contract
amount		      Pay   Receive  

Export-Import Bank of Korea

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

ING Bank

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

BNP Paribas

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

BNP Paribas

      2009~2027        USD 41,040      4.16%     6M USD Synthetic Libor  

KFW

      2009~2027        USD 41,040      4.16%     6M USD Synthetic Libor  

Export-Import Bank of Korea

      2016~2036        USD 60,977      3.00%     6M USD Synthetic Libor  

 

(7)

Gains and losses on valuation and transaction of derivatives for each of the three-month periods ended March 31, 2024 and 2023 are as follows and they are included as 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		      Accumulated other
comprehensive
income (loss) (*)		  
     March 31, 2024      March 31, 2023     March 31, 2024      March 31, 2023      March 31, 2024     March 31, 2023  

Currency forward

    W 15,149        8,713       19,751        7,325        —        —   

Currency swap

      618,110        423,204       4,168        11,901        (2,478 )      7,570  

Interest rate swap

      29,682        (64,065 )      6,927        8,562        3,626       (819 ) 

Other derivatives

      13,439        —        3,456        —         —        —   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  
   W 676,380        367,852       34,302        27,788        1,148       6,751  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

 

(*)

For each of the three-month periods ended March 31, 2024 and 2023, the net gain on valuation of derivatives applying cash flow hedge accounting of W1,501 million and W3,614 million, net of tax, are included in other comprehensive income, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

13.

Other Financial Assets

 

(1)

Other financial assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Loans

    W 142,055        958,789        139,178        966,421  

Less: allowance for doubtful accounts

      (4 )       (69,035 )       (10 )       (80,783 ) 

Less: present value discount

      (1,199 )       (37,786 )       (1,007 )       (35,468 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
     140,852        851,968        138,161        850,170  
  

 

 

     

 

 

     

 

 

     

 

 

  

Long-term / short-term financial instruments

      608,416        832,135        578,578        833,737  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 749,268        1,684,103        716,739        1,683,907  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2)

Loans as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Face value      Allowance for
doubtful accounts		      Present value
discount		      Carrying value  

Short-term loans

            

Loans for tuition

    W 31,429        —         (1,199 )       30,230  

Loans for housing

      39,635        —         —         39,635  

Other loans

      70,991        (4 )       —         70,987  
  

 

 

     

 

 

     

 

 

     

 

 

  
     142,055        (4 )       (1,199 )       140,852  
  

 

 

     

 

 

     

 

 

     

 

 

  

Long-term loans

            

Loans for tuition

      424,561        (24,745 )       (37,786 )       362,030  

Loans for housing

      291,238        —         —         291,238  

Loans for related parties

      232,445        (44,290 )       —         188,155  

Other loans

      10,545        —         —         10,545  
  

 

 

     

 

 

     

 

 

     

 

 

  
     958,789        (69,035 )       (37,786 )       851,968  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 1,100,844        (69,039 )       (38,985 )       992,820  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

Short-term loans

            

Loans for tuition

    W 30,497        —         (1,007 )       29,490  

Loans for housing

      35,560        —         —         35,560  

Other loans

      73,121        (10 )       —         73,111  
  

 

 

     

 

 

     

 

 

     

 

 

  
     139,178        (10 )       (1,007 )       138,161  
  

 

 

     

 

 

     

 

 

     

 

 

  

Long-term loans

            

Loans for tuition

      419,684        (24,745 )       (35,468 )       359,471  

Loans for housing

      301,840        —         —         301,840  

Loans for related parties

      222,014        (43,640 )       —         178,374  

Other loans

      22,883        (12,398 )       —         10,485  
  

 

 

     

 

 

     

 

 

     

 

 

  
     966,421        (80,783 )       (35,468 )       850,170  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 1,105,599        (80,793 )       (36,475 )       988,331  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

13.

Other Financial Assets, Continued

 

(3)

Changes in the allowance for doubtful accounts of loans for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024            December 31, 2023  

Beginning balance

    W 80,793                54,837  

Bad debts expense

      643          16,394  

Write-off

      (12,397 )         —   

Others

      —           9,562  
  

 

 

       

 

 

  

Ending balance

    W 69,039          80,793  
  

 

 

       

 

 

  

 

(4)

Long-term and short-term financial instruments as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Time deposits

    W 376,902        145,647        363,286        145,336  

Others

      231,514        686,488        215,292        688,401  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 608,416        832,135        578,578        833,737  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

40

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

14.

Inventories

Inventories as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Acquisition cost      Valuation allowance      Book value  

Raw materials

    W 4,478,967        (1,387 )       4,477,580  

Merchandises

      1,648        —         1,648  

Work-in-progress

      191,668        —         191,668  

Finished goods

      54,183        (57 )       54,126  

Supplies

      2,965,930        —         2,965,930  

Inventories-in-transit

      941,332        —         941,332  

Other inventories

      18,146        —         18,146  
  

 

 

     

 

 

     

 

 

  
   W 8,651,874        (1,444 )       8,650,430  
  

 

 

     

 

 

     

 

 

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

Raw materials

    W 4,624,638        (1,387 )       4,623,251  

Merchandises

      335        —         335  

Work-in-progress

      187,304        —         187,304  

Finished goods

      97,272        (57 )       97,215  

Supplies

      2,930,978        —         2,930,978  

Inventories-in-transit

      1,021,797        —         1,021,797  

Other inventories

      14,735        —         14,735  
  

 

 

     

 

 

     

 

 

  
   W 8,877,059        (1,444 )       8,875,615  
  

 

 

     

 

 

     

 

 

  

The reversal of the allowance for loss on inventory valuation deducted from the cost of sales for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 amounts to W1,598 million and W9,974 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 were W1,598 million and W9,936 million, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

15.

Non-Financial Assets

Non-financial assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Advanced payments

    W 299,836        47,020        300,350        75,489  

Prepaid expenses

      447,325        255,718        440,079        214,022  

Others (*)

      196,596        50,809        368,892        60,659  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 943,757        353,547        1,109,321        350,170  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Details of others as of March 31, 2024 and December 31, 2023 are as follows:

 

                                                                               
In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Greenhouse gas emissions rights

    W 38,164        —         25,246        —   

Other quick assets

      158,432        50,809        343,646        60,659  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 196,596        50,809        368,892        60,659  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries

 

(1)

Consolidated subsidiaries as of March 31, 2024 and December 31, 2023 are as follows:

 

Subsidiaries

   Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2024     December 31, 2023  

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      51.00 %      51.00 % 

KEPCO Plant Service & Engineering Co., Ltd.

   Utility plant maintenance and others    Korea      51.00 %      51.00 % 

KEPCO Nuclear Fuel Co., Ltd.

   Nuclear fuel    Korea      96.36 %      96.36 % 

KEPCO KDN Co., Ltd.

   Electric power information technology and others    Korea      100.00 %      100.00 % 

KEPCO International HongKong Ltd.

   Holding company    Hong Kong      100.00 %      100.00 % 

KEPCO International Philippines Inc.

   Holding company    Philippines      100.00 %      100.00 % 

KEPCO Gansu International Ltd.

   Holding company    Hong Kong      100.00 %      100.00 % 

KEPCO Philippines Holdings Inc.

   Holding company    Philippines      100.00 %      100.00 % 

KEPCO Philippines Corporation

   Operation of utility plant    Philippines      100.00 %      100.00 % 

KEPCO Ilijan Corporation

   Construction and operation of utility plant    Philippines      51.00 %      51.00 % 

KEPCO 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 %      80.03 % 

KEPCO Holdings de Mexico

   Holding company    Mexico      100.00 %      100.00 % 

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

   Construction and operation of utility plant    Mexico      56.00 %      56.00 % 

KEPCO Energy Service Company

   Operation of utility plant    Mexico      100.00 %      100.00 % 

KEPCO Netherlands S3 B.V.

   Holding company    Netherlands      100.00 %      100.00 % 

PT. KOMIPO Pembangkitan Jawa Bali

   Operation of utility plant    Indonesia      51.00 %      51.00 % 

PT. Cirebon Power Service (*2)

   Operation of utility plant    Indonesia      27.50 %      27.50 % 

KOWEPO International Corporation

   Operation of utility plant    Philippines      99.99 %      99.99 % 

KOSPO Jordan LLC

   Operation of utility plant    Jordan      100.00 %      100.00 % 

EWP America Inc.

   Holding company    USA      100.00 %      100.00 % 

EWP Renewable Corporation

   Holding company    USA      100.00 %      100.00 % 

KNF Canada Energy Limited

   Holding company    Canada      100.00 %      100.00 % 

EWP Barbados 1 SRL

   Holding company    Barbados      100.00 %      100.00 % 

California Power Holdings, LLC

   Power generation    USA      100.00 %      100.00 % 

Gyeonggi Green Energy Co., Ltd.

   Power generation    Korea      62.01 %      62.01 % 

PT. Tanggamus Electric Power

   Power generation    Indonesia      52.50 %      52.50 % 

Gyeongju Wind Power Co., Ltd.

   Power generation    Korea      70.00 %      70.00 % 

KOMIPO America Inc.

   Holding company    USA      100.00 %      100.00 % 

PT. EWP Indonesia

   Holding company    Indonesia      99.96 %      99.96 % 

KEPCO Netherlands J3 B.V.

   Holding company    Netherlands      100.00 %      100.00 % 

Korea Offshore Wind Power Co., Ltd.

   Power generation    Korea      100.00 %      100.00 % 

Global One Pioneer B.V.

   Holding company    Netherlands      100.00 %      100.00 % 

Global Energy Pioneer B.V.

   Holding company    Netherlands      100.00 %      100.00 % 

Mira Power Limited (*3)

   Power generation    Pakistan      76.00 %      76.00 % 

KOSEP Material Co., Ltd.

   Recycling fly ashes    Korea      86.22 %      86.22 % 

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

   RDF power generation    Korea      85.03 %      85.03 % 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

Subsidiaries

   Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2024     December 31, 2023  

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 %      100.00 % 

Chitose Solar Power Plant LLC

   Power generation    Japan      65.00 %      65.00 % 

KEPCO ES 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 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 % 

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 % 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

Subsidiaries

   Key operation activities    Location    Percentage of ownership (%)  
   March 31, 2024     December 31, 2023  

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 (*5)

   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 (*5)

   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 % 

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. (*3,6)

   Holding company    Australia      74.04 %      74.04 % 

Digital Innovation Growth Fund

   Holding company    Korea      76.92 %      76.92 % 

J Wind First, LLC (*7)

   Company specializing in liquidization    Korea      —      — 

KEPCO Holding Company

   Holding company    Saudi Arabia      100.00 %      100.00 % 

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 %      100.00 % 

KEPCO KPS South Africa Pty., Ltd.

   Utility plant maintenance and others    Republic of South Africa      100.00 %      100.00 % 

KOWEPO Holding Limited

   Holding company    United Arab Emirates      100.00 %      100.00 % 

Magna Energy New Industrial Fund

   Holding company    Korea      82.00 %      82.00 % 

Columboola Solar Farm Nominees Pty., Ltd. (*3)

   Power generation    Australia      100.00 %      100.00 % 

Columboola Solar Farm Op Trust (*3)

   Power generation    Australia      100.00 %      100.00 % 

Columboola Solar Farm Fin Co Pty., Ltd. (*3)

   Holding company    Australia      100.00 %      100.00 % 

EWP ESS Holdings, LLC

   Holding company    USA      100.00 %      100.00 % 

Fairhaven ESS LLC

   Holding company    USA      100.00 %      100.00 % 

KOSPO Rutile, LLC

   Holding company    USA      100.00 %      — 

 

45

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(1)

Consolidated subsidiaries as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

(*1)

Considering treasury stocks, the effective percentage of ownership is 51.24%. The Group sold a portion of its stocks in the subsidiary (14.77%) during the year ended December 31, 2023.

(*2)

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

(*3)

As of March 31, 2024, the annual reporting period of all subsidiaries ends on December 31, except for Mira Power Limited, Columboola Solar Farm Hold Co Pty., Ltd., Columboola Solar Farm Nominees Pty., Ltd., Columboola Solar Farm Op Trust and Columboola Solar Farm Fin Co Pty., Ltd.

(*4)

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

(*5)

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.

(*6)

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

(*7)

Although the Group does not hold a stake as of March 31, 2024, 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)

A subsidiary included in consolidation for the three-month period ended March 31, 2024 is as follows:

 

Subsidiaries

   

Reason

KOSPO Rutile, LLC

    New investment

 

46

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows:

 

In millions of won                            

March 31, 2024

  

Subsidiaries

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

Korea Hydro & Nuclear Power Co., Ltd.

    W 70,450,811        45,889,841        2,697,185        (310,400 ) 

Korea South-East Power Co., Ltd.

      12,838,162        6,677,968        1,751,702        15,153  

Korea Midland Power Co., Ltd.

      15,134,777        10,227,927        1,868,323        20,965  

Korea Western Power Co., Ltd.

      12,693,850        7,671,429        1,396,522        12,949  

Korea Southern Power Co., Ltd.

      13,219,482        7,655,167        1,500,647        20,215  

Korea East-West Power Co., Ltd.

      11,527,970        5,492,371        1,332,288        42,803  

KEPCO Engineering & Construction Company, Inc.

      880,406        347,310        127,615        8,647  

KEPCO Plant Service & Engineering Co., Ltd.

      1,689,311        471,374        332,450        42,335  

KEPCO Nuclear Fuel Co., Ltd.

      1,166,736        686,945        155,213        22,980  

KEPCO KDN Co., Ltd.

      889,823        321,834        166,828        150,792  

KEPCO International HongKong Ltd.

      141,088        —         —         1,195  

KEPCO International Philippines Inc.

      76,768        —         —         476  

KEPCO Gansu International Ltd.

      7,548        647        —         (12 ) 

KEPCO Philippines Holdings Inc.

      215,994        120        —         29,106  

KEPCO Philippines Corporation

      2,723        —         —         29  

KEPCO Ilijan Corporation

      150,271        754        —         826  

KEPCO Neimenggu International Ltd.

      296,804        4,460        —         (52 ) 

KEPCO Shanxi International Ltd.

      739,026        344,937        —         (634 ) 

KOMIPO Global Pte Ltd.

      405,723        2,294        —         7,346  

KEPCO Netherlands B.V.

      146,929        76        —         (201 ) 

KEPCO Australia Pty., Ltd.

      764        11        —         39  

KOSEP Australia Pty., Ltd.

      78,347        7,688        7,090        1,892  

KOMIPO Australia Pty., Ltd.

      84,871        3,083        7,090        (27 ) 

KOWEPO Australia Pty., Ltd.

      82,728        2,193        7,090        (1,696 ) 

KOSPO Australia Pty., Ltd.

      31,397        3,104        7,090        1,769  

KEPCO Middle East Holding Company

      121,961        110,076        —         (2,088 ) 

Qatrana Electric Power Company

      518,228        216,626        7,016        5,837  

KHNP Canada Energy Ltd.

      177,396        15,201        —         112  

KEPCO Bylong Australia Pty., Ltd.

      44,168        490,243        —         (26,571 ) 

Korea Waterbury Uranium Limited Partnership

      20,767        54        —         (50 ) 

KEPCO Holdings de Mexico

      972        2,791        —         (238 ) 

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

      651,087        498,928        22,281        5,091  

KEPCO Energy Service Company

      1,993        481        2,320        86  

KEPCO Netherlands S3 B.V.

      73,779        17,531        —         (53 ) 

PT. KOMIPO Pembangkitan Jawa Bali

      19,800        4,089        5,158        2,129  

PT. Cirebon Power Service

      3,176        788        2,345        66  

KOWEPO International Corporation

      —         11        —         —   

KOSPO Jordan LLC

      23,172        5,224        3,665        1,718  

EWP America Inc. (*1)

      49,537        5,484        3,560        (769 ) 

KNF Canada Energy Limited

      2,347        27        —         (15 ) 

EWP Barbados 1 SRL

      448,196        1,659        —         7,245  

Gyeonggi Green Energy Co., Ltd.

      170,129        212,671        16,353        (7,895 ) 

PT. Tanggamus Electric Power

      221,033        150,901        3,330        1,941  

Gyeongju Wind Power Co., Ltd.

      91,015        48,544        5,703        1,817  

KOMIPO America Inc. (*2)

      596,168        323,690        4,303        139  

PT. EWP Indonesia

      96,906        123        —         1,450  

KEPCO Netherlands J3 B.V.

      155,615        9,941        —         (231 ) 

Korea Offshore Wind Power Co., Ltd.

      337,638        144,424        10,713        2,597  

Global One Pioneer B.V.

      149        76        —         (18 ) 

Global Energy Pioneer B.V.

      353        76        —         (9 ) 

Mira Power Limited

      421,744        314,010        594        17,121  

KOSEP Material Co., Ltd.

      5,220        529        1,174        194  

Commerce and Industry Energy Co., Ltd.

      71,330        27,996        8,098        (727 ) 

KEPCO KPS Philippines Corp.

      8,652        2,579        4,001        1,011  

KOSPO Chile SpA

      175,089        80,052        —         (37 ) 

 

47

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

March 31, 2024

  

Subsidiaries

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

PT. KOWEPO Sumsel Operation And Maintenance Services

    W 26        264        —         —   

Hee Mang Sunlight Power Co., Ltd.

      5,907        2,410        143        23  

Fujeij Wind Power Company

      234,431        167,978        —         3,646  

KOSPO Youngnam Power Co., Ltd.

      385,131        278,187        114,935        2,680  

Chitose Solar Power Plant LLC

      91,698        76,931        3,228        459  

KEPCO ES Co., Ltd.

      315,329        8,858        1,225        2,490  

KEPCO Solar Co., Ltd.

      235,845        29,699        4,595        1,021  

KOSPO Power Services Ltda.

      7,474        7,156        4,646        526  

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

      460,151        2,092        6,297        3,816  

KOEN Bylong Pty., Ltd.

      12        146        —         —   

KOMIPO Bylong Pty., Ltd.

      13        152        —         (5 ) 

KOWEPO Bylong Pty., Ltd.

      12        148        —         (5 ) 

KOSPO Bylong Pty., Ltd.

      366        524        —         —   

EWP Bylong Pty., Ltd.

      13        13        —         —   

KOWEPO Lao International

      14,822        872        2,700        835  

KEPCO Mangilao Holdings LLC

      91,149        40,393        197        47  

Mangilao Investment LLC

      214,592        16        —         —   

KEPCO Mangilao Solar, LLC

      214,255        777        4,215        979  

Jeju Hanlim Offshore Wind Co., Ltd.

      462,110        390,768        1,078        299  

PT. Siborpa Eco Power

      12,744        3        —         (9 ) 

PT. Korea Energy Indonesia

      3,356        1,902        385        (352 ) 

KOLAT SpA

      44,417        126        331        (83 ) 

KEPCO California, LLC

      48,720        7,109        314        56  

KEPCO Mojave Holdings, LLC

      95,980        81,361        —         (938 ) 

Incheon Fuel Cell Co., Ltd.

      257,480        238,389        21,297        (2,669 ) 

KOEN Service Co., Ltd.

      7,878        4,999        9,506        (47 ) 

KOMIPO Service Co., Ltd.

      8,646        5,497        9,536        (19 ) 

KOWEPO Service Co., Ltd.

      5,969        5,180        6,514        (2,913 ) 

KOSPO Service Co., Ltd.

      5,814        3,789        7,622        85  

EWP Service Co., Ltd.

      5,414        3,697        6,723        201  

PT. KOMIPO Energy Indonesia

      2,519        213        —         (470 ) 

KNF partners Co., Ltd.

      2,320        779        1,349        58  

KOSPO USA Inc. (*4)

      502,060        569        —         391  

Nambu USA LLC

      310,145        103        —         (321 ) 

Tamra Offshore Wind Power Co., Ltd.

      116,732        81,053        3,514        (708 ) 

KEPCO MCS Co., Ltd.

      92,353        57,963        66,939        (2,858 ) 

KEPCO FMS Co., Ltd.

      17,370        16,932        21,957        (2,730 ) 

Firstkeepers Co., Ltd.

      21,757        14,455        23,477        1,663  

Secutec Co., Ltd.

      15,418        10,352        19,019        937  

SE Green Energy Co., Ltd.

      127,647        95,859        7,388        (715 ) 

Mangilao Intermediate Holdings LLC

      214,987        120,122        —         (975 ) 

KEPCO CSC Co., Ltd.

      15,382        10,839        11,370        729  

KOAK Power Limited

      15,594        533        —         (261 ) 

KOMIPO Europe B.V.

      86,605        21        315        (233 ) 

Haenanum Energy Fund

      7,414        12        —         (9 ) 

Paju Ecoenergy Co., Ltd.

      59,890        2,127        2,855        (743 ) 

Guam Ukudu Power LLC

      805,865        776,461        —         (919 ) 

K-SOLAR SHINAN Co., Ltd.

      292,960        279,854        6,137        (2,162 ) 

 

48

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

March 31, 2024

  

Subsidiaries

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

KPS Partners Co., Ltd.

    W 3,591        1,902        3,278        24  

KEPCO E&C Service Co., Ltd.

      7,730        2,099        4,227        402  

Moha solar Co., Ltd.

      26,790        29,036        —         (74 ) 

Ogiri Solar Power Co., Ltd.

      1,032        36        —         (5 ) 

KHNP USA LLC

      2,113        534        289        139  

KOMIPO Vanphong Power Service LLC

      29,764        1,806        6,458        4,415  

Energy Innovation Fund I

      43,184        218        —         (214 ) 

KHNP Chile SpA

      5,727        4,403        —         (8 ) 

Yeong Yang Apollon Photovoltaic Co., Ltd.

      1,494        1,407        15        (15 ) 

Yeong Yang Corporation Co., Ltd.

      1,493        1,398        24        (6 ) 

SolarVader Co., Ltd.

      1,503        1,401        24        (6 ) 

Yeong Yang Innovation Co., Ltd.

      1,482        1,398        22        (7 ) 

Yeong Yang Horus Photovoltaic Co., Ltd.

      1,474        1,398        21        (7 ) 

Yeong Yang Solar Management Co., Ltd.

      1,517        1,401        26        (4 ) 

LSG Hydro Power Limited

      737        26        —         (40 ) 

KOEN Bio Co., Ltd.

      1,040        621        343        3  

KOMIPO Iberian Solar Group, S.L.U.

      82,280        69,311        —         (33 ) 

Jeongam Wind Power Co., Ltd.

      73,013        61,214        1,388        (915 ) 

KOWEPO Europe B.V.

      54        3,230        —         (50 ) 

Yeongdeok Sunrise Wind Power Co., Ltd.

      100,677        78,933        —         (129 ) 

KA Power Limited

      6,238        3,134        —         (73 ) 

Western Power Changgi Solar Co., Ltd.

      45,795        39,761        1,211        (100 ) 

EWP Australia Pty., Ltd.

      53,396        2        —         817  

Columboola Solar Farm Hold Co Pty., Ltd. (*5)

      310,347        211,671        2,738        1,526  

Digital Innovation Growth Fund

      11,813        95        —         189  

J Wind First, LLC

      55,257        55,257        745        —   

KEPCO Holding Company

      3,454        —         —         —   

KEPCO for Maintenance Company

      117        —         —         (6 ) 

KOSPO Trumbull LLC

      85,285        —         —         —   

Changjuk Wind Power Co., Ltd.

      24,936        2,393        1,904        610  

Chile Solar JV SpA

      91,577        76,560        3,494        (4,582 ) 

KEPCO KPS South Africa Pty., Ltd.

      12,742        7,031        8,393        598  

KOWEPO Holding Limited

      1,317        1,415        —         (48 ) 

 

(*1)

Financial information of EWP America Inc. includes that of 4 other subsidiaries, EWP Renewable Corporation, California Power Holdings LLC, EWP ESS Holdings, LLC, and Fairhaven ESS 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 6 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, UI Carbon-Neutrality Fund, and Magna Energy New Industrial Fund.

(*4)

The summarized financial information of KOSPO USA Inc. is the consolidated one including that of KOSPO Rutile, LLC.

(*5)

Financial information of Columboola Solar Farm Hold Co Pty., Ltd. includes that of 3 other subsidiaries including Columboola Solar Farm Nominees Pty., Ltd.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

December 31, 2023

  

Subsidiaries

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

Korea Hydro & Nuclear Power Co., Ltd.

    W 70,535,018        45,660,916        10,798,378        151,638  

Korea South-East Power Co., Ltd.

      13,158,245        6,964,695        7,761,713        196,522  

Korea Midland Power Co., Ltd.

      15,309,205        10,368,698        7,611,821        (1,844 ) 

Korea Western Power Co., Ltd.

      12,710,246        7,648,441        6,915,233        126,519  

Korea Southern Power Co., Ltd.

      13,405,076        7,807,334        7,298,989        226,811  

Korea East-West Power Co., Ltd.

      11,683,112        5,626,034        5,571,885        139,013  

KEPCO Engineering & Construction Company, Inc.

      854,704        307,396        545,092        32,654  

KEPCO Plant Service & Engineering Co., Ltd.

      1,585,380        318,597        1,523,031        161,849  

KEPCO Nuclear Fuel Co., Ltd.

      1,101,960        622,157        284,066        43,533  

KEPCO KDN Co., Ltd.

      733,434        301,713        738,833        65,495  

KEPCO International HongKong Ltd.

      133,915        —         —         8,795  

KEPCO International Philippines Inc.

      72,830        —         —         4,891  

KEPCO Gansu International Ltd.

      7,226        608        —         (23 ) 

KEPCO Philippines Holdings Inc.

      180,592        96        —         8,802  

KEPCO Philippines Corporation

      2,607        —         —         127  

KEPCO Ilijan Corporation

      142,711        800        —         3,718  

KEPCO Neimenggu International Ltd.

      284,280        4,346        —         15,021  

KEPCO Shanxi International Ltd.

      707,447        329,539        —         (3,875 ) 

KOMIPO Global Pte Ltd.

      411,249        32,900        —         17,174  

KEPCO Netherlands B.V.

      141,088        45        —         3,856  

KEPCO Australia Pty., Ltd.

      749        34        —         131  

KOSEP Australia Pty., Ltd.

      79,308        7,990        29,675        10,665  

KOMIPO Australia Pty., Ltd.

      86,077        4,014        29,676        9,248  

KOWEPO Australia Pty., Ltd.

      86,074        3,571        29,675        9,001  

KOSPO Australia Pty., Ltd.

      32,828        3,923        29,675        10,329  

KEPCO Middle East Holding Company

      121,015        107,611        —         (1,548 ) 

Qatrana Electric Power Company

      491,627        208,707        26,779        20,949  

KHNP Canada Energy Ltd.

      155,242        12,379        —         392  

KEPCO Bylong Australia Pty., Ltd.

      44,557        465,231        —         (16,669 ) 

Korea Waterbury Uranium Limited Partnership

      20,772        44        —         (67 ) 

KEPCO Holdings de Mexico

      1,171        2,621        —         (121 ) 

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

      631,348        490,470        93,843        19,657  

KEPCO Energy Service Company

      2,028        716        10,193        251  

KEPCO Netherlands S3 B.V.

      70,613        16,710        —         1,769  

PT. KOMIPO Pembangkitan Jawa Bali

      17,303        3,929        23,639        1,579  

PT. Cirebon Power Service

      2,936        714        9,457        672  

KOWEPO International Corporation

      —         10        —         —   

KOSPO Jordan LLC

      19,387        3,881        17,665        7,082  

EWP America Inc. (*1)

      46,954        4,032        14,549        895  

KNF Canada Energy Limited

      2,261        34        —         (56 ) 

EWP Barbados 1 SRL

      434,690        14,217        2,448        36,566  

Gyeonggi Green Energy Co., Ltd.

      180,176        214,822        80,630        (28,549 ) 

PT. Tanggamus Electric Power

      214,892        150,483        2,127        (2,230 ) 

Gyeongju Wind Power Co., Ltd.

      90,616        49,982        19,807        6,716  

KOMIPO America Inc. (*2)

      579,403        318,295        39,323        3,376  

PT. EWP Indonesia

      90,650        132        —         9,590  

KEPCO Netherlands J3 B.V.

      153,324        13,634        —         15,289  

Korea Offshore Wind Power Co., Ltd.

      334,444        143,827        40,313        6,497  

Global One Pioneer B.V.

      143        44        —         (85 ) 

Global Energy Pioneer B.V.

      336        44        —         (81 ) 

Mira Power Limited

      403,843        318,557        2,683        (1,590 ) 

KOSEP Material Co., Ltd.

      4,974        542        4,834        908  

Commerce and Industry Energy Co., Ltd.

      73,671        29,611        33,050        (2,901 ) 

KEPCO KPS Philippines Corp.

      5,775        884        4,608        97  

KOSPO Chile SpA

      166,643        75,619        —         —   

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

December 31, 2023

  

Subsidiaries

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

PT. KOWEPO Sumsel Operation And Maintenance Services

    W 26        260        —         —   

Hee Mang Sunlight Power Co., Ltd.

      5,877        2,403        689        202  

Fujeij Wind Power Company

      216,082        158,081        —         15,067  

KOSPO Youngnam Power Co., Ltd.

      360,026        255,761        410,173        (7,965 ) 

Chitose Solar Power Plant LLC

      98,911        84,228        14,447        2,059  

KEPCO ES Co., Ltd.

      322,529        15,367        14,151        5,384  

KEPCO Solar Co., Ltd.

      246,273        36,127        23,234        8,367  

KOSPO Power Services Ltda.

      6,976        7,086        17,634        (211 ) 

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

      454,888        3,364        24,030        10,812  

KOEN Bylong Pty., Ltd.

      11        128        —         —   

KOMIPO Bylong Pty., Ltd.

      13        147        —         (20 ) 

KOWEPO Bylong Pty., Ltd.

      12        142        —         (43 ) 

KOSPO Bylong Pty., Ltd.

      388        541        —         (20 ) 

EWP Bylong Pty., Ltd.

      13        13        —         46  

KOWEPO Lao International

      13,038        223        10,270        6,268  

KEPCO Mangilao Holdings LLC

      90,445        41,898        775        785  

Mangilao Investment LLC

      206,714        15        —         (1 ) 

KEPCO Mangilao Solar, LLC

      206,600        1,918        13,593        826  

Jeju Hanlim Offshore Wind Co., Ltd.

      459,229        388,171        —         (3,032 ) 

PT. Siborpa Eco Power

      12,209        3        —         (52 ) 

PT. Korea Energy Indonesia

      1,878        101        1,897        132  

KOLAT SpA

      46,958        352        2,237        1,820  

KEPCO California, LLC

      46,606        6,823        613        (385 ) 

KEPCO Mojave Holdings, LLC

      93,233        78,328        —         (3,901 ) 

Incheon Fuel Cell Co., Ltd.

      259,169        237,409        96,924        (4,112 ) 

KOEN Service Co., Ltd.

      11,470        8,745        38,164        305  

KOMIPO Service Co., Ltd.

      7,944        4,777        37,525        960  

KOWEPO Service Co., Ltd.

      10,300        6,584        36,421        264  

KOSPO Service Co., Ltd.

      6,122        4,182        30,369        703  

EWP Service Co., Ltd.

      5,487        3,790        26,767        176  

PT. KOMIPO Energy Indonesia

      2,983        250        2,023        38  

KNF partners Co., Ltd.

      2,589        1,106        6,380        340  

KOSPO USA Inc.

      378,732        377        —         (6,351 ) 

Nambu USA LLC

      297,370        230        —         (732 ) 

Tamra Offshore Wind Power Co., Ltd.

      120,460        83,161        18,570        1,089  

KEPCO MCS Co., Ltd.

      111,189        73,940        307,146        (4,757 ) 

KEPCO FMS Co., Ltd.

      21,310        18,142        107,336        1,895  

Firstkeepers Co., Ltd.

      18,698        12,437        90,575        2,689  

Secutec Co., Ltd.

      16,038        11,797        72,284        699  

SE Green Energy Co., Ltd.

      147,251        114,737        40,326        (1,305 ) 

Mangilao Intermediate Holdings LLC

      206,771        114,954        —         (5,293 ) 

KEPCO CSC Co., Ltd.

      15,985        12,170        49,502        2,644  

KOAK Power Limited

      15,000        528        —         714  

KOMIPO Europe B.V.

      86,109        69        1,183        109  

Haenanum Energy Fund

      7,415        3        47        (1 ) 

Paju Ecoenergy Co., Ltd.

      60,653        2,146        15,351        (357 ) 

Guam Ukudu Power LLC

      749,837        720,795        —         (19,904 ) 

K-SOLAR SHINAN Co., Ltd.

      298,866        281,676        37,137        (6,896 ) 

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(3)

Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

December 31, 2023

  

Subsidiaries

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

KPS Partners Co., Ltd.

    W 3,503        1,776        12,921        183  

KEPCO E&C Service Co., Ltd.

      7,167        1,938        16,454        1,505  

Moha solar Co., Ltd.

      27,213        29,363        —         112  

Ogiri Solar Power Co., Ltd.

      1,032        31        —         (9 ) 

KHNP USA LLC

      1,517        140        1,142        166  

KOMIPO Vanphong Power Service LLC

      26,819        3,768        21,396        10,879  

Energy Innovation Fund I

      43,725        419        —         (766 ) 

KHNP Chile SpA

      5,555        4,219        —         (66 ) 

Yeong Yang Apollon Photovoltaic Co., Ltd.

      1,529        1,427        219        42  

Yeong Yang Corporation Co., Ltd.

      1,519        1,418        216        39  

SolarVader Co., Ltd.

      1,529        1,421        219        40  

Yeong Yang Innovation Co., Ltd.

      1,510        1,418        210        32  

Yeong Yang Horus Photovoltaic Co., Ltd.

      1,502        1,418        206        28  

Yeong Yang Solar Management Co., Ltd.

      1,540        1,420        224        46  

LSG Hydro Power Limited

      717        8        —         (219 ) 

KOEN Bio Co., Ltd.

      1,010        585        2,467        372  

KOMIPO Iberian Solar Group, S.L.U.

      79,666        66,874        —         (931 ) 

Jeongam Wind Power Co., Ltd.

      75,744        63,219        8,154        (958 ) 

KOWEPO Europe B.V.

      107        3,177        —         (44,685 ) 

Yeongdeok Sunrise Wind Power Co., Ltd.

      94,615        74,842        —         (383 ) 

KA Power Limited

      3,173        172        —         126  

Western Power Changgi Solar Co., Ltd.

      46,950        40,815        7,036        2,011  

EWP Australia Pty., Ltd.

      52,734        —         325        337  

Columboola Solar Farm Hold Co Pty., Ltd. (*4)

      311,259        213,822        10,072        3,217  

Digital Innovation Growth Fund

      11,624        96        —         (266 ) 

J Wind First, LLC

      52,304        52,304        2,540        —   

KEPCO Holding Company

      3,307        —         —         (23 ) 

KEPCO for Maintenance Company

      118        —         —         (45 ) 

KOSPO Trumbull LLC

      25        —         —         (10 ) 

Changjuk Wind Power Co., Ltd.

      24,364        3,049        6,230        744  

Chile Solar JV SpA

      98,705        75,472        9,050        (2,768 ) 

KEPCO KPS South Africa Pty., Ltd.

      9,222        4,236        8,512        834  

KOWEPO Holding Limited

      1,323        1,371        —         (49 ) 

 

(*1)

Financial information of EWP America Inc. includes that of 4 other subsidiaries, EWP Renewable Corporation, California Power Holdings LLC, EWP ESS Holdings, LLC, and Fairhaven ESS 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 6 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, UI Carbon-Neutrality Fund, and Magna Energy New Industrial Fund.

(*4)

Financial information of Columboola Solar Farm Hold Co Pty., Ltd. includes that of 3 other subsidiaries including Columboola Solar Farm Nominees Pty., Ltd.

 

52

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(4)

Significant restrictions on abilities to subsidiaries as of March 31, 2024 are as follows:

 

Company

   

Nature and extent of any significant restrictions

Gyeonggi Green Energy Co., Ltd.

    Acquisition or disposal of assets of more than W10 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 may be payable only when all conditions of the loan agreement are satisfied. The Group’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.

Jeongam Wind Power Co., Ltd.

    Dividends may be payable only when all conditions of the loan agreement are satisfied, and prior written consent of financial institutions is obtained. Also, payments to the contracting party may be restricted depending on the financial management priority of the contract. The 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 W20 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 may be payable only 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 on subordinated loans or dividends and settlement amounts for renewable energy certificate may be payable only when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. The Group’s equity interest in the subsidiary may be transferred either wholly or partially without prior written consent of financial institutions.

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 may be payable only when all conditions of the loan agreement are satisfied.

Columboola Solar Farm Hold Co Pty., Ltd.

    Dividends may be payable only when all conditions of the loan agreement are satisfied.

Guam Ukudu Power LLC

    Dividends may be payable only when all conditions of the loan agreement are satisfied. Disposing or transferring assets either as a whole or as a part is restricted, and the Group’s equity interest in the subsidiary may not be transferred either wholly or partially without prior consent of other stakeholders including financial institutions.

Mira Power Limited

    The Group’s equity interest may be transferred either wholly or partially without prior consent of other stakeholders.

Chile Solar JV SpA

    The Group’s equity interest may be transferred either wholly or partially without prior consent of other stakeholders.

K-SOLAR SHINAN Co., Ltd.

    Dividends may be payable only when all conditions of the loan agreement are satisfied. The Group’s equity interest may not be transferred either wholly or partially without prior consent of other stakeholders until five years have elapsed after the commencement of the operation.

Western Power Changgi Solar Co., Ltd.

    Principals and interest on subordinated loans or dividends to investors are only payable when all conditions of the loan agreement are satisfied, and prior written consent of financial institutions is obtained. Also, the Group’s equity interest may not be transferred either wholly or partially without prior written consent of financial institutions.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(4)

Significant restrictions on abilities to subsidiaries as of March 31, 2024 are as follows, continued:

 

Company

   

Nature and extent of any significant restrictions

Chitose Solar Power Plant LLC

    Capital expenditure may be incurred only upon prior consent of financial institutions. The issuance of securities to third parties, including current investors, is restricted, and the amount of paid-in capital cannot either increase, be written off or decrease.

Mangilao Intermediate Holdings LLC

    Changes or termination of the O&M contract, and delays in the EPC contract may not be made without the prior written consent of the majority of the lenders, and dividends can be implemented only after repayment of the loan is completed.

Fujeij Wind Power Company

    Incurring additional borrowings not specified in the loan agreement, or changing the PPA schedule or the EPC contract without the lender’s prior written consent is restricted. Also, commercial operation before acquiring wind turbine is restricted without prior consent from the EPC contractor. In addition, capital acquisition and new share issuance other than dividends payment to investors are restricted.

Qatrana Electric Power Company

    Dividends payment, repayment of capital investment, and settlement for O&M can only be made when all conditions of the loan agreement are satisfied and prior consent of financial institutions is obtained.

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

    Disposal of assets exceeding $5 million per year is restricted, and the debt ratio is required to be maintained below 90%. Additionally, capital and cost expenditures that do not meet the conditions in the loan agreement are restricted.

 

(5)

As of March 31, 2024, the Group has following entitlements in relation to its subsidiaries as per its shareholders’ agreements:

 

Company

   

Unrecognized Commitments

Jeongam Wind Power Co., Ltd.

    When the Group requests other shareholders to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares at fair value.

Changjuk Wind Power Co., Ltd.

    When other shareholders want to sell their shares after the performance guarantee period of wind power generators stipulated in the equipment supply contract is completed, the Group has an obligation to purchase the shares at fair value after consulting with the parties on the timing and size of the acquisition, taking in to account financial conditions, business conditions, and other circumstances.

Columboola Solar Farm Hold Co Pty., Ltd.

    The Group holds a call option to purchase the shares held by another shareholder at 80% of the stock’s valuation in the event of a breach of obligation specified in the shareholder agreement.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(6)

Details of non-controlling interests prior to intra-Company eliminations as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won  

March 31, 2024

  

Description

    KEPCO Ilijan
Corporation		     KEPCO Plant
Service &
Engineering
Co., Ltd.		     KEPCO
Engineering &
Construction
Company, Inc.		     Others     Total  

Percentage of ownership

      49.00 %      49.00 %      48.76 %     

Current assets

    W 149,630       1,045,444       477,575       1,236,829       2,909,478  

Non-current assets

      641       643,867       402,831       4,721,913       5,769,252  

Current liabilities

      (243 )      (465,270 )      (289,695 )      (1,008,312 )      (1,763,520 ) 

Non-current liabilities

      (511 )      (6,104 )      (57,615 )      (2,791,223 )      (2,855,453 ) 

Net assets

      149,517       1,217,937       533,096       2,159,207       4,059,757  

Book value of non-controlling interests

      73,263       596,789       259,937       481,804       1,411,793  

Sales

      —        332,450       127,615       310,507       770,572  

Profit for the period

      826       42,335       8,647       45,937       97,745  

Profit for the period attributable to non-controlling interests

      405       20,744       4,216       9,108       34,473  

Cash flows from operating activities

      1,256       153,159       22,976       198,270       375,661  

Cash flows from investing activities

      —        (51,185 )      (20,713 )      (26,037 )      (97,935 ) 

Cash flows from financing activities before dividends to non-controlling interests

      (65 )      (8,903 )      (273 )      (78,470 )      (87,711 ) 

Dividends to non-controlling interests

      —        —        —        (2,553 )      (2,553 ) 

Effect of exchange rate fluctuation

      6,315       502       101       17,133       24,051  

Net increase of cash and cash equivalents

      7,506       93,573       2,091       108,343       211,513  

 

In millions of won  

December 31, 2023

  

Description

    KEPCO Ilijan
Corporation		     KEPCO Plant
Service &
Engineering
Co., Ltd.		     KEPCO
Engineering &
Construction
Company, Inc.		     Others     Total  

Percentage of ownership

      49.00 %      49.00 %      48.76 %     

Current assets

    W 142,023       953,211       446,900       1,193,078       2,735,212  

Non-current assets

      688       632,169       407,804       4,639,760       5,680,421  

Current liabilities

      (252 )      (313,249 )      (249,899 )      (1,009,791 )      (1,573,191 ) 

Non-current liabilities

      (548 )      (5,348 )      (57,497 )      (2,737,589 )      (2,800,982 ) 

Net assets

      141,911       1,266,783       547,308       2,085,458       4,041,460  

Book value of non-controlling interests

      69,536       620,723       266,867       462,581       1,419,707  

Sales

      —        1,523,031       545,092       1,212,372       3,280,495  

Profit for the period

      3,718       161,849       32,654       63,145       261,366  

Profit for the period attributable to non-controlling interests

      1,822       79,306       15,922       9,355       106,405  

Cash flows from operating activities

      1,086       (35,492 )      39,985       368,415       373,994  

Cash flows from investing activities

      84       26,915       (19,345 )      (508,844 )      (501,190 ) 

Cash flows from financing activities before dividends to non-controlling interests

      (93,348 )      (36,433 )      (6,687 )      119,109       (17,359 ) 

Dividends to non-controlling interests

      (643 )      (28,775 )      (5,250 )      (20,866 )      (55,534 ) 

Effect of exchange rate fluctuation

      5,135       (454 )      (35 )      2,813       7,459  

Net increase of cash and cash equivalents

      (87,686 )      (74,239 )      8,668       (39,373 )      (192,630 ) 

 

55

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

16.

Consolidated Subsidiaries, Continued

 

(7)

Changes in goodwill

(i) Details of goodwill as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024     December 31, 2023  

Acquisition cost

    W 101,637       101,738  

Less: Accumulated impairment

      (2,582 )      (2,582 ) 
  

 

 

    

 

 

  

Carrying book value

    W 99,055       99,156  
  

 

 

    

 

 

  

(ii) Changes in goodwill for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning      Increase      Decrease      Impairment      Others      Ending  

Acquisition cost

    W 101,738        —         —         —         (101 )       101,637  

Less: Accumulated impairment

      (2,582 )       —         —         —         —         (2,582 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Carrying book value

    W 99,156        —         —         —         (101 )       99,055  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  
     Beginning      Increase      Decrease      Impairment      Others      Ending  

Acquisition cost

    W 100,093        1,859        —         —         (214 )       101,738  

Less: Accumulated impairment

      —         —         —         (2,582 )       —         (2,582 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Carrying book value

    W 100,093        1,859        —         (2,582 )       (214 )       99,156  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(8)

Disposals of subsidiaries

The Group is proceeding the liquidation process of KEPCO Lebanon SARL, its subsidiary, and the entity was excluded from the consolidation scope in the prior year. The Group has completed the liquidation process of other subsidiaries, KHNP Spain, S.L. and KEPCO US Inc, for the year ended December 31, 2023.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures

 

(1)

Investments in associates and joint ventures as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won       

March 31, 2024

  

Investees

   

Key operation activities

   Location     Percentage of
ownership		     Acquisition
cost		     Book
value		  

<Associates>

           

Korea Gas Corporation

    Importing and wholesaling LNG     Korea       20.47%     W 94,500       2,067,109  

Hyundai Green Power Co., Ltd.

   

Power generation equipment consignment and operation service

     Korea       29.00%       88,885       115,170  

Korea Power Exchange (*1)

    Management of power market and others     Korea       100.00%       127,839       275,810  

SPC Power Corporation (*2)

    Power generation     Philippines       38.00%       20,635       78,866  

Gemeng International Energy Co., Ltd.

    Power generation     China       42.00%       516,007       724,189  

PT. Cirebon Electric Power

    Power generation     Indonesia       27.50%       40,365       142,068  

PT Wampu Electric Power

    Power generation     Indonesia       46.00%       21,292       36,848  

PT. Bayan Resources TBK

    Resources development     Indonesia       20.00%       615,860       681,266  

S-Power Co., Ltd.

    Power generation     Korea       49.00%       132,300       172,183  

Xe-Pian Xe-Namnoy Power Co., Ltd.

    Power generation     Laos       25.00%       87,426       126,621  

Goseong Green Power Co., Ltd.

    Power generation     Korea       29.00%       262,740       275,162  

Gangneung Eco Power Co., Ltd.

    Power generation     Korea       29.00%       261,000       249,929  

Shin Pyeongtaek Power Co., Ltd.

    Power generation     Korea       40.00%       72,000       137,190  

Dongducheon Dream Power Co., Ltd. (*3)

    Power generation     Korea       33.61%       148,105       89,944  

GS Donghae Electric Power Co., Ltd.

    Power generation     Korea       34.00%       204,000       264,450  

Nepal Water & Energy Development Company

Private Limited (*4)

    Construction and operation of utility plant     Nepal       68.88%       110,332       154,302  

Indeck Niles Development, LLC

    Holding company     USA       50.00%       263,825       338,623  

Saemangeum Sebit Power Plant Co., Ltd. (*5)

    Power generation     Korea       55.14%       21,037       36,302  

PT. Cirebon Energi Prasarana (*6)

    Power generation     Indonesia       10.00%       26,710       84,971  

Others (Korea Electric Power Industrial Development Co., Ltd. and 77 others)

            332,059       303,872  
        

 

 

    

 

 

  
           3,446,917       6,354,875  
        

 

 

    

 

 

  

<Joint ventures>

           

Shuweihat Asia Power Investment B.V.

    Holding company     Netherland       49.00%       44,405       76,421  

KEPCO SPC Power Corporation (*2,7)

    Construction and operation of utility plant     Philippines       75.20%       94,579       176,580  

Datang Chifeng Renewable Power Co., Ltd.

    Power generation     China       40.00%       121,928       197,511  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

    Power generation     China       40.00%       39,872       45,051  

Rabigh Electricity Company (*8)

    Power generation     Saudi Arabia       40.00%       109,743       257,641  

Jamaica Public Service Company Limited

    Power generation     Jamaica       40.00%       301,910       372,622  

Amman Asia Electric Power Company (*7)

    Power generation     Jordan       60.00%       111,476       240,962  

Chun-cheon Energy Co., Ltd.

    Power generation     Korea       29.90%       52,700       35,859  

Nghi Son 2 Power LLC

    Power generation     Vietnam       50.00%       175,261       475,966  

Kelar S.A. (*7)

    Power generation     Chile       65.00%       78,060       135,284  

PT. Tanjung Power Indonesia

    Power generation     Indonesia       35.00%       57,039       96,455  

South Jamaica Power Company Limited

    Power generation     Jamaica       20.00%       20,430       44,993  

RE Holiday Holdings LLC

    Power generation     USA       50.00%       42,948       83,891  

RE Pioneer Holdings LLC

    Power generation     USA       50.00%       27,891       53,285  

RE Barren Ridge 1 Holdings LLC

    Power generation     USA       50.00%       28,021       57,407  

Solar Philippines Calatagan Corporation

    Power generation     Philippines       38.00%       47,903       55,448  

Pulau Indah Power Plant Sdn. Bhd.

    Power generation     Malaysia       25.00%       38,107       40,491  

PT Barito Wahana Tenaga

    Power generation     Indonesia       30.61%       59,574       177,433  

Cheongna Energy Co., Ltd. (*9)

    Generating and distributing vapor and hot/cold water     Korea       50.10%       49,344       37,781  

OneEnergy Asia Limited

    Power generation     Vietnam       40.00%       230,306       369,498  

Prime Swedish Holding AB

    Holding company     Sweden       45.00%       36,227       39,419  

Trumbull Development Partners, LLC (*9)

    Holding company     USA       56.23%       81,625       85,167  

Others (Dangjin Eco Power Co., Ltd. and 90 others)

            713,037       714,004  
        

 

 

    

 

 

  
           2,562,386       3,869,169  
        

 

 

    

 

 

  
         W 6,009,303       10,224,044  
        

 

 

    

 

 

  

 

57

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

(*1)

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.

(*2)

The Group is planning to sell its investment in SPC Power Corporation, KEPCO SPC Power Corporation and time or proceeds of sales are not specified as of March 31, 2024.

(*3)

The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*4)

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.

(*5)

The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*6)

The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group exercises significant influence over the decisions related to finance and operation.

(*7)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and the Group can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

(*8)

The effective percentage of ownership is less than 50%. However, all critical financial and operating decisions must be agreed to by all ownership parties. Accordingly, the entities are classified as joint ventures.

(*9)

The effective percentage of ownership is more than 50%. However, all critical financial and operating decisions must be agreed to by all ownership parties. Accordingly, the entities are classified as joint ventures.

 

58

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won       

December 31, 2023

  

Investees

   

Key operation activities

   Location     Percentage of
ownership		     Acquisition
cost		     Book
value		  

<Associates>

           

Korea Gas Corporation

    Importing and wholesaling LNG     Korea       20.47%     W 94,500       1,970,643  

Hyundai Green Power Co., Ltd.

   

Power generation equipment consignment and operation service

     Korea       29.00%       88,885       118,173  

Korea Power Exchange (*1)

    Management of power market and others     Korea       100.00%       127,839       274,286  

SPC Power Corporation (*2)

    Power generation     Philippines       38.00%       20,635       78,931  

Gemeng International Energy Co., Ltd.

    Power generation     China       42.00%       516,007       705,812  

PT. Cirebon Electric Power

    Power generation     Indonesia       27.50%       40,365       134,259  

PT Wampu Electric Power

    Power generation     Indonesia       46.00%       21,292       34,555  

PT. Bayan Resources TBK

    Resources development     Indonesia       20.00%       615,860       619,207  

S-Power Co., Ltd.

    Power generation     Korea       49.00%       132,300       162,765  

Xe-Pian Xe-Namnoy Power Co., Ltd.

    Power generation     Laos       25.00%       87,426       116,378  

Goseong Green Power Co., Ltd.

    Power generation     Korea       29.00%       262,740       287,624  

Gangneung Eco Power Co., Ltd. (*10)

    Power generation     Korea       29.00%       261,000       254,929  

Shin Pyeongtaek Power Co., Ltd.

    Power generation     Korea       40.00%       72,000       145,026  

Dongducheon Dream Power Co., Ltd. (*3)

    Power generation     Korea       33.61%       148,105       87,203  

GS Donghae Electric Power Co., Ltd.

    Power generation     Korea       34.00%       204,000       259,085  

Nepal Water & Energy Development Company Private
Limited (*4, 10)

    Construction and operation of utility plant     Nepal       68.88%       110,332       110,573  

Indeck Niles Development, LLC

    Holding company     USA       50.00%       263,825       335,401  

Saemangeum Sebit Power Plant Co., Ltd. (*5)

    Power generation     Korea       55.14%       21,037       37,191  

PT. Cirebon Energi Prasarana (*6)

    Power generation     Indonesia       10.00%       26,710       76,597  

Others (Korea Electric Power Industrial Development Co., Ltd. and 79 others)

            394,241       368,251  
        

 

 

    

 

 

  
           3,509,099       6,176,889  
        

 

 

    

 

 

  

<Joint ventures>

           

Shuweihat Asia Power Investment B.V.

    Holding company     Netherland       49.00%       44,405       69,902  

KEPCO SPC Power Corporation (*2,7)

    Construction and operation of utility plant     Philippines       75.20%       94,579       196,544  

Datang Chifeng Renewable Power Co., Ltd.

    Power generation     China       40.00%       121,928       186,739  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

    Power generation     China       40.00%       39,872       43,207  

Rabigh Electricity Company (*8)

    Power generation     Saudi Arabia       40.00%       109,743       235,051  

Jamaica Public Service Company Limited

    Power generation     Jamaica       40.00%       301,910       349,866  

Amman Asia Electric Power Company (*7)

    Power generation     Jordan       60.00%       111,476       223,424  

Chun-cheon Energy Co., Ltd.

    Power generation     Korea       29.90%       52,700       35,083  

Nghi Son 2 Power LLC

    Power generation     Vietnam       50.00%       175,261       417,989  

Kelar S.A. (*7)

    Power generation     Chile       65.00%       78,060       131,529  

PT. Tanjung Power Indonesia

    Power generation     Indonesia       35.00%       57,039       90,151  

South Jamaica Power Company Limited

    Power generation     Jamaica       20.00%       20,430       43,109  

RE Holiday Holdings LLC

    Power generation     USA       50.00%       42,948       84,092  

RE Pioneer Holdings LLC

    Power generation     USA       50.00%       27,891       54,081  

RE Barren Ridge 1 Holdings LLC

    Power generation     USA       50.00%       28,021       58,154  

Solar Philippines Calatagan Corporation

    Power generation     Philippines       38.00%       47,903       58,130  

Pulau Indah Power Plant Sdn. Bhd.

    Power generation     Malaysia       25.00%       24,339       25,603  

PT Barito Wahana Tenaga

    Power generation     Indonesia       30.61%       59,574       156,994  

Cheongna Energy Co., Ltd. (*9)

    Generating and distributing vapor and hot/cold water     Korea       50.10%       49,344       25,549  

OneEnergy Asia Limited

    Power generation     Vietnam       40.00%       195,130       289,966  

Prime Swedish Holding AB

    Holding company     Sweden       45.00%       36,227       38,789  

Others (Dangjin Eco Power Co., Ltd. and 89 others)

            712,824       671,747  
        

 

 

    

 

 

  
           2,431,604       3,485,699  
        

 

 

    

 

 

  
         W 5,940,703       9,662,588  
        

 

 

    

 

 

  

 

59

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(1)

Investments in associates and joint ventures as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

(*1)

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.

(*2)

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, 2023.

(*3)

The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*4)

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.

(*5)

The effective percentage of ownership decreased due to the disproportionate paid-in capital increase during the year ended December 31, 2023. The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*6)

The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group exercises significant influence over the decisions related to finance and operation.

(*7)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and the Group can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

(*8)

The effective percentage of ownership is less than 50%. However, the entity is classified as a joint venture because all consent was required to make decisions on related activities.

(*9)

The effective percentage of ownership is more than 50%. However, decisions in relevant activities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(*10)

The effective percentage of ownership changed due to the disproportionate capital reduction of financial investors during the year ended December 31, 2023.

 

(2)

The fair values of associates which are actively traded on an open market as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won              

Investees

    March 31, 2024      December 31, 2023  

<Associates>

      

Korea Electric Power Industrial Development Co., Ltd.

    W 69,298        69,298  

Korea Gas Corporation

      507,465        466,830  

YTN Co., Ltd. (*)

      —         54,180  

SPC Power Corporation

      121,144        92,219  

PT. Bayan Resources TBK

      10,754,001        11,090,934  

 

(*)

The Group sold all of its shares in YTN Co., Ltd. for the three-month period ended March 31, 2024.

 

60

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(3)

Changes in investments in associates and joint ventures for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won                                                   

March 31, 2024

  

Investees

    Beginning
balance		      Acquisition      Disposals     Dividends
received		     Share of
income
(loss)		     Other
comprehensive
income (loss)		     Others     Ending
balance		  

<Associates>

                   

Korea Gas Corporation

    W 1,970,643        —         —        —        82,928       13,531       7       2,067,109  

Hyundai Green Power Co., Ltd.

      118,173        —         —        (3,555 )      552       —        —        115,170  

Korea Power Exchange

      274,286        —         —        —        4,557       (3,033 )      —        275,810  

SPC Power Corporation

      78,931        —         —        (8,100 )      757       7,278       —        78,866  

Gemeng International Energy Co., Ltd.

      705,812        —         —        —        (887 )      18,137       1,127       724,189  

PT. Cirebon Electric Power

      134,259        —         —        —        1,807       —        6,002       142,068  

PT Wampu Electric Power

      34,555        —         —        —        2,738       (1,994 )      1,549       36,848  

PT. Bayan Resources TBK

      619,207        —         —        —        40,191       21,922       (54 )      681,266  

S-Power Co., Ltd.

      162,765        —         —        —        9,418       —        —        172,183  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      116,378        —         —        —        6,391       3,852       —        126,621  

Goseong Green Power Co., Ltd.

      287,624        —         —        —        (12,447 )      (15 )      —        275,162  

Gangneung Eco Power Co., Ltd.

      254,929        —         —        —        (5,000 )      —        —        249,929  

Shin Pyeongtaek Power Co., Ltd.

      145,026        —         —        (22,560 )      14,724       —        —        137,190  

Dongducheon Dream Power Co., Ltd.

      87,203        —         —        —        2,730       —        11       89,944  

GS Donghae Electric Power Co., Ltd.

      259,085        —         —        —        5,365       —        —        264,450  

Nepal Water & Energy Development Company Private Limited

      110,573        —         —        —        (1,432 )      45,161       —        154,302  

Indeck Niles Development, LLC

      335,401        —         —        —        (8,332 )      (3,218 )      14,772       338,623  

Saemangeum Sebit Power Plant Co., Ltd.

      37,191        —         —        —        (889 )      —        —        36,302  

PT. Cirebon Energi Prasarana

      76,597        —         —        —        2,123       2,773       3,478       84,971  

Others (Korea Electric Power Industrial Development Co., Ltd. and 79 others)

      368,251        —         (55,524 )      (11,137 )      2,857       (1,658 )      1,083       303,872  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     6,176,889        —         (55,524 )      (45,352 )      148,151       102,736       27,975       6,354,875  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

<Joint ventures>

                   

Shuweihat Asia Power Investment B.V.

      69,902        —         —        —        (487 )      7,006       —        76,421  

KEPCO SPC Power Corporation

      196,544        —         —        (20,890 )      105       821       —        176,580  

Datang Chifeng Renewable Power Co., Ltd.

      186,739        —         —        —        5,665       5,107       —        197,511  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      43,207        —         —        —        667       1,177       —        45,051  

Rabigh Electricity Company

      235,051        —         —        —        10,058       12,532       —        257,641  

Jamaica Public Service Company Limited

      349,866        —         —        —        7,083       15,673       —        372,622  

Amman Asia Electric Power Company

      223,424        —         —        —        5,202       12,336       —        240,962  

Chun-cheon Energy Co., Ltd.

      35,083        —         —        —        776       —        —        35,859  

Nghi Son 2 Power LLC

      417,989        —         —        —        9,225       48,752       —        475,966  

Kelar S.A.

      131,529        —         —        —        (121 )      (1,950 )      5,826       135,284  

PT. Tanjung Power Indonesia

      90,151        —         —        —        1,504       5,266       (466 )      96,455  

South Jamaica Power Company Limited

      43,109        —         —        (784 )      773       1,895       —        44,993  

RE Holiday Holdings LLC

      84,092        —         —        —        (2,450 )      2,249       —        83,891  

RE Pioneer Holdings LLC

      54,081        —         —        —        (1,340 )      544       —        53,285  

RE Barren Ridge 1 Holdings LLC

      58,154        —         —        (731 )      (902 )      886       —        57,407  

Solar Philippines Calatagan Corporation

      58,130        —         —        —        1,524       (4,206 )      —        55,448  

Pulau Indah Power Plant Sdn. Bhd.

      25,603        14,274        —        —        214       400       —        40,491  

PT Barito Wahana Tenaga

      156,994        —         —        —        8,226       12,213       —        177,433  

Cheongna Energy Co., Ltd.

      25,549        —         —        —        12,232       —        —        37,781  

OneEnergy Asia Limited

      289,966        35,176        —        —        16,025       28,331       —        369,498  

Prime Swedish Holding AB

      38,789        —         —        —        (63 )      —        693       39,419  

Trumbull Development Partners, LLC

      —         81,625        —        —        (4,625 )      4,535       3,632       85,167  

Others (Dangjin Eco Power Co., Ltd. and 90 others)

      671,747        9,412        —        (4,863 )      1,746       34,610       1,352       714,004  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     3,485,699        140,487        —        (27,268 )      71,037       188,177       11,037       3,869,169  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W 9,662,588        140,487        (55,524 )      (72,620 )      219,188       290,913       39,012       10,224,044  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

61

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(3)

Changes in investments in associates and joint ventures for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows, continued:

 

 

In millions of won                                                   

December 31, 2023

  

Investees

    Beginning
balance		      Acquisition      Disposals     Dividends
received		     Share of
income
(loss)		     Other
comprehensive
income (loss)		     Others     Ending
balance		  

<Associates>

                   

Korea Gas Corporation

    W 2,085,296        —         —        —        (155,819 )      47,220       (6,054 )      1,970,643  

Hyundai Green Power Co., Ltd.

      119,791        —         —        (3,555 )      2,159       —        (222 )      118,173  

Korea Power Exchange

      275,126        —         —        —        4,575       —        (5,415 )      274,286  

SPC Power Corporation

      70,868        —         —        (2,669 )      9,667       1,065       —        78,931  

Gemeng International Energy Co., Ltd.

      578,821        102,854        —        (12,527 )      41,280       565       (5,181 )      705,812  

PT. Cirebon Electric Power

      135,114        —         —        (10,770 )      7,519       —        2,396       134,259  

PT Wampu Electric Power

      37,743        —         —        (3,850 )      (268 )      224       706       34,555  

PT. Bayan Resources TBK

      684,719        —         —        (344,360 )      252,406       26,500       (58 )      619,207  

S-Power Co., Ltd.

      141,128        —         —        —        21,637       —        —        162,765  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      115,584        —         —        —        (848 )      1,642       —        116,378  

Goseong Green Power Co., Ltd.

      288,893        —         —        —        (1,240 )      —        (29 )      287,624  

Gangneung Eco Power Co., Ltd.

      —         258,100        —        —        (3,171 )      —        —        254,929  

Shin Pyeongtaek Power Co., Ltd.

      133,823        —         —        (70,040 )      81,258       —        (15 )      145,026  

Dongducheon Dream Power Co., Ltd.

      89,300        —         —        —        (2,568 )      —        471       87,203  

GS Donghae Electric Power Co., Ltd.

      260,145        —         —        (21,846 )      21,240       —        (454 )      259,085  

Nepal Water & Energy Development Company Private Limited

      69,940        40,103        —        —        (325 )      855       —        110,573  

Indeck Niles Development, LLC

      302,038        —         —        —        32,067       (3,623 )      4,919       335,401  

Saemangeum Sebit Power Plant Co., Ltd.

      23,199        7,249        —        —        (709 )      —        7,452       37,191  

PT. Cirebon Energi Prasarana

      69,035        —         —        —        7,328       (891 )      1,125       76,597  

Others (Korea Electric Power Industrial Development Co., Ltd. and 83 others)

      363,901        13,803        (2,911 )      (16,395 )      18,191       (359 )      (7,979 )      368,251  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     5,844,464        422,109        (2,911 )      (486,012 )      334,379       73,198       (8,338 )      6,176,889  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

<Joint ventures>

                   

Shuweihat Asia Power Investment B.V.

      66,452        —         —        (512 )      (440 )      4,402       —        69,902  

KEPCO SPC Power Corporation

      179,594        —         —        —        13,224       3,726       —        196,544  

Datang Chifeng Renewable Power Co., Ltd.

      191,982        —         —        (14,293 )      9,012       38       —        186,739  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      44,398        —         —        (1,771 )      639       (59 )      —        43,207  

Rabigh Electricity Company

      214,607        —         —        (6,263 )      28,456       (1,749 )      —        235,051  

Jamaica Public Service Company Limited

      331,407        —         —        (15,715 )      32,862       7,959       (6,647 )      349,866  

Amman Asia Electric Power Company

      220,254        —         —        (15,636 )      17,833       973       —        223,424  

Chun-cheon Energy Co., Ltd.

      32,044        —         —        —        3,039       —        —        35,083  

Nghi Son 2 Power LLC

      408,839        —         —        —        14,742       (5,592 )      —        417,989  

Kelar S.A.

      117,137        —         —        —        11,655       848       1,889       131,529  

PT. Tanjung Power Indonesia

      92,907        —         —        (12,641 )      9,679       338       (132 )      90,151  

South Jamaica Power Company Limited

      46,437        —         —        (7,667 )      3,709       630       —        43,109  

RE Holiday Holdings LLC

      85,370        —         —        (1,549 )      (1,425 )      1,696       —        84,092  

RE Pioneer Holdings LLC

      55,172        —         —        (1,162 )      (2,089 )      2,160       —        54,081  

RE Barren Ridge 1 Holdings LLC

      3,350        —         —        (3,087 )      (1,733 )      59,624       —        58,154  

Solar Philippines Calatagan Corporation

      56,902        —         —        (6,025 )      6,025       1,228       —        58,130  

Pulau Indah Power Plant Sdn. Bhd.

      26,814        —         —        (27 )      671       (2,360 )      505       25,603  

PT Barito Wahana Tenaga

      137,047        —         —        —        20,546       (599 )      —        156,994  

Cheongna Energy Co., Ltd.

      10,758        —         —        —        14,791       —        —        25,549  

OneEnergy Asia Limited

      172,218        79,182        —        —        39,091       (525 )      —        289,966  

Prime Swedish Holding AB

      36,245        820        —        —        (236 )      —        1,960       38,789  

Others (Dangjin Eco Power Co., Ltd. and 93 others)

      617,650        43,141        (2,774 )      (20,453 )      40,626       6,816       (13,259 )      671,747  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     3,147,584        123,143        (2,774 )      (106,801 )      260,677       79,554       (15,684 )      3,485,699  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W 8,992,048        545,252        (5,685 )      (592,813 )      595,056       152,752       (24,022 )      9,662,588  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

62

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(4)

Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows:

 

In millions of won                            

March 31, 2024

  

Investees

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

<Associates>

            

Korea Gas Corporation

    W 57,116,769        46,843,525        12,810,655        406,925  

Hyundai Green Power Co., Ltd.

      728,433        331,297        25,612        1,905  

Korea Power Exchange

      365,029        89,219        30,714        3,584  

SPC Power Corporation

      274,999        27,021        19,477        2,535  

Gemeng International Energy Co., Ltd.

      7,685,765        5,311,414        758,970        (5,126 ) 

PT. Cirebon Electric Power

      691,855        175,244        78,270        6,571  

PT Wampu Electric Power

      201,235        121,131        4,385        5,952  

PT. Bayan Resources TBK

      3,843,111        1,025,909        1,021,746        288,631  

S-Power Co., Ltd.

      770,067        416,311        242,941        19,144  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      1,408,980        898,652        46,532        23,217  

Goseong Green Power Co., Ltd.

      5,283,798        4,322,992        302,129        (41,100 ) 

Gangneung Eco Power Co., Ltd.

      5,445,862        4,742,804        278,379        230  

Shin Pyeongtaek Power Co., Ltd.

      1,168,981        798,612        261,380        36,434  

Dongducheon Dream Power Co., Ltd.

      1,417,624        1,114,982        406,860        7,099  

GS Donghae Electric Power Co., Ltd.

      1,956,456        1,178,663        170,288        15,780  

Nepal Water & Energy Development Company Private Limited

      462,562        239,810        19,620        (2,079 ) 

Indeck Niles Development, LLC

      1,187,966        707,041        70,914        (12,507 ) 

Saemangeum Sebit Power Plant Co., Ltd.

      162,725        97,055        4,306        (1,616 ) 

PT. Cirebon Energi Prasarana

      3,816,692        2,966,979        129,898        21,233  

<Joint ventures>

            

Shuweihat Asia Power Investment B.V.

      156,062        100        —         (140 ) 

KEPCO SPC Power Corporation

      257,831        23,018        38,264        391  

Datang Chifeng Renewable Power Co., Ltd.

      845,553        351,777        34,264        13,655  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      173,015        60,388        6,267        1,564  

Rabigh Electricity Company

      2,660,791        1,903,533        69,259        23,275  

Jamaica Public Service Company Limited

      2,365,474        1,469,273        338,239        17,529  

Amman Asia Electric Power Company

      729,005        327,402        5,681        8,574  

Chun-cheon Energy Co., Ltd.

      583,473        462,726        110,330        2,415  

Nghi Son 2 Power LLC

      3,933,280        2,981,348        231,119        18,449  

Kelar S.A.

      702,761        499,409        26,972        2,192  

PT. Tanjung Power Indonesia

      749,539        473,954        25,445        4,460  

South Jamaica Power Company Limited

      502,379        277,400        58,986        4,781  

RE Holiday Holdings LLC

      341,757        173,976        23,977        (4,224 ) 

RE Pioneer Holdings LLC

      258,482        151,912        17,391        (4,882 ) 

RE Barren Ridge 1 Holdings LLC

      213,385        98,571        14,823        (3,817 ) 

Solar Philippines Calatagan Corporation

      154,351        40,336        4,565        1,857  

Pulau Indah Power Plant Sdn. Bhd.

      802,650        663,259        —         847  

PT Barito Wahana Tenaga

      579,617        4        —         21,797  

Cheongna Energy Co., Ltd.

      442,947        371,427        57,433        24,413  

OneEnergy Asia Limited

      2,645,816        1,785,853        126,215        22,478  

Prime Swedish Holding AB

      85,193        312        —         (141 ) 

Trumbull Development Partners, LLC

      994,496        927,909        —         (8,226 ) 

 

63

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(4)

Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 is as follows, continued:

 

In millions of won                            

December 31, 2023

  

Investees

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

<Associates>

            

Korea Gas Corporation

    W 57,254,666        47,428,628        44,555,995        (747,428 ) 

Hyundai Green Power Co., Ltd.

      738,107        330,616        107,367        7,446  

Korea Power Exchange

      366,092        91,806        119,182        4,443  

SPC Power Corporation

      287,249        28,485        106,926        27,946  

Gemeng International Energy Co., Ltd.

      7,507,274        5,189,729        2,963,614        33,580  

PT. Cirebon Electric Power

      665,365        177,150        265,054        27,341  

PT Wampu Electric Power

      206,943        131,823        20,155        (582 ) 

PT. Bayan Resources TBK

      4,447,335        2,018,870        4,675,174        1,670,522  

S-Power Co., Ltd.

      762,398        427,807        1,012,050        44,730  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      1,370,110        900,713        171,978        (5,674 ) 

Goseong Green Power Co., Ltd.

      5,374,233        4,372,531        1,580,545        152  

Gangneung Eco Power Co., Ltd.

      5,381,984        4,665,083        1,419,436        (7,388 ) 

Shin Pyeongtaek Power Co., Ltd.

      1,222,968        832,633        1,040,219        201,635  

Dongducheon Dream Power Co., Ltd.

      1,337,529        1,042,681        1,744,247        (8,608 ) 

GS Donghae Electric Power Co., Ltd.

      1,932,098        1,170,085        876,826        62,471  

Nepal Water & Energy Development Company Private Limited

      327,057        167,792        82,720        (3,186 ) 

Indeck Niles Development, LLC

      1,157,838        675,638        318,392        64,813  

Saemangeum Sebit Power Plant Co., Ltd.

      165,283        97,997        22,663        (812 ) 

PT. Cirebon Energi Prasarana

      3,372,539        2,606,566        434,806        73,285  

<Joint ventures>

            

Shuweihat Asia Power Investment B.V.

      142,680        20        —         897  

KEPCO SPC Power Corporation

      288,140        26,778        222,773        17,270  

Datang Chifeng Renewable Power Co., Ltd.

      812,124        345,277        117,833        25,055  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      166,959        58,942        23,638        1,597  

Rabigh Electricity Company

      2,556,848        1,855,234        304,727        51,539  

Jamaica Public Service Company Limited

      2,332,019        1,491,199        1,400,582        87,307  

Amman Asia Electric Power Company

      719,388        347,015        21,772        33,811  

Chun-cheon Energy Co., Ltd.

      565,972        447,820        502,889        10,435  

Nghi Son 2 Power LLC

      3,775,717        2,939,740        825,701        33,336  

Kelar S.A.

      691,104        493,325        112,201        12,488  

PT. Tanjung Power Indonesia

      704,274        446,700        111,138        21,854  

South Jamaica Power Company Limited

      482,866        267,307        240,664        18,833  

RE Holiday Holdings LLC

      340,773        172,589        21,178        664  

RE Pioneer Holdings LLC

      257,091        148,929        14,136        (2,164 ) 

RE Barren Ridge 1 Holdings LLC

      213,491        97,184        11,915        (1,979 ) 

Solar Philippines Calatagan Corporation

      146,304        37,922        16,420        9,121  

Pulau Indah Power Plant Sdn. Bhd.

      800,300        720,459        431        2,095  

PT Barito Wahana Tenaga

      512,846        —         —         72,320  

Cheongna Energy Co., Ltd.

      428,042        380,935        119,530        29,511  

OneEnergy Asia Limited

      2,181,165        1,520,032        1,149,944        94,298  

Prime Swedish Holding AB

      83,699        218        —         (524 ) 

 

64

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won  

March 31, 2024

  

Investees

    Net assets      Percentage of
ownership (*)		     Share in
net assets		      Investment
differential		      Intercompany
transaction		     Others     Book
value		  

<Associates>

                  

Korea Gas Corporation

    W 10,273,244        20.47 %      2,102,933        —         —        (35,824 )      2,067,109  

Hyundai Green Power Co., Ltd.

      397,136        29.00 %      115,170        —         —        —        115,170  

Korea Power Exchange

      275,810        100.00 %      275,810        —         —        —        275,810  

SPC Power Corporation

      247,978        38.00 %      94,232        —         —        (15,366 )      78,866  

Gemeng International Energy Co., Ltd.

      2,374,351        42.00 %      997,227        —         —        (273,038 )      724,189  

PT. Cirebon Electric Power

      516,611        27.50 %      142,068        —         —        —        142,068  

PT Wampu Electric Power

      80,104        46.00 %      36,848        —         —        —        36,848  

PT. Bayan Resources TBK

      2,817,202        20.00 %      563,440        194,205        —        (76,379 )      681,266  

S-Power Co., Ltd.

      353,756        49.00 %      173,340        —         (1,157 )      —        172,183  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      510,328        25.00 %      127,582        305        (977 )      (289 )      126,621  

Goseong Green Power Co., Ltd.

      960,806        29.00 %      278,634        —         (3,472 )      —        275,162  

Gangneung Eco Power Co., Ltd.

      703,058        29.00 %      203,887        48,116        (2,074 )      —        249,929  

Shin Pyeongtaek Power Co., Ltd.

      370,369        40.00 %      148,148        3,559        (14,517 )      —        137,190  

Dongducheon Dream Power Co., Ltd.

      302,642        34.01 %      102,929        1,757        (2,159 )      (12,583 )      89,944  

GS Donghae Electric Power Co., Ltd.

      777,793        34.00 %      264,450        —         —        —        264,450  

Nepal Water & Energy Development Company Private Limited

      222,752        68.88 %      153,430        872        —        —        154,302  

Indeck Niles Development, LLC

      480,925        50.00 %      240,462        93,779        —        4,382       338,623  

Saemangeum Sebit Power Plant Co., Ltd.

      65,670        55.00 %      36,120        182        —        —        36,302  

PT. Cirebon Energi Prasarana

      849,713        10.00 %      84,971        —         —        —        84,971  

<Joint ventures>

                  

Shuweihat Asia Power Investment B.V.

      155,962        49.00 %      76,421        —         —        —        76,421  

KEPCO SPC Power Corporation

      234,813        75.20 %      176,580        —         —        —        176,580  

Datang Chifeng Renewable Power Co., Ltd.

      493,776        40.00 %      197,511        —         —        —        197,511  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      112,627        40.00 %      45,051        —         —        —        45,051  

Rabigh Electricity Company

      757,258        40.00 %      302,903        —         (44,457 )      (805 )      257,641  

Jamaica Public Service Company Limited

      896,201        40.00 %      358,480        29,357        —        (15,215 )      372,622  

Amman Asia Electric Power Company

      401,603        60.00 %      240,962        —         —        —        240,962  

Chun-cheon Energy Co., Ltd.

      120,747        29.90 %      36,103        3        —        (247 )      35,859  

Nghi Son 2 Power LLC

      951,932        50.00 %      475,966        —         —        —        475,966  

Kelar S.A.

      203,352        65.00 %      132,179        3,105        —        —        135,284  

PT. Tanjung Power Indonesia

      275,585        35.00 %      96,455        —         —        —        96,455  

South Jamaica Power Company Limited

      224,979        20.00 %      44,996        —         —        (3 )      44,993  

RE Holiday Holdings LLC

      167,781        50.00 %      83,891        —         —        —        83,891  

RE Pioneer Holdings LLC

      106,570        50.00 %      53,285        —         —        —        53,285  

RE Barren Ridge 1 Holdings LLC

      114,814        50.00 %      57,407        —         —        —        57,407  

Solar Philippines Calatagan Corporation

      114,015        38.00 %      43,326        —         —        12,122       55,448  

Pulau Indah Power Plant Sdn. Bhd.

      139,391        25.00 %      34,848        5,643        —        —        40,491  

PT Barito Wahana Tenaga

      579,613        30.61 %      177,433        —         —        —        177,433  

Cheongna Energy Co., Ltd.

      71,520        50.10 %      35,832        3,137        (1,188 )      —        37,781  

OneEnergy Asia Limited

      859,963        40.00 %      343,985        25,513        —        —        369,498  

Prime Swedish Holding AB

      84,881        45.00 %      38,196        1,223        —        —        39,419  

Trumbull Development Partners, LLC

      66,587        56.23 %      37,442        47,725        —        —        85,167  

 

(*)

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

 

65

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2024 and December 31, 2023 is as follows, continued:

 

In millions of won  

December 31, 2023

  

Investees

    Net assets      Percentage of
ownership (*)		     Share in
net assets		      Investment
differential		      Intercompany
transaction		     Others     Book
value		  

<Associates>

                  

Korea Gas Corporation

    W 9,826,038        20.47 %      2,011,390        —         —        (40,747 )      1,970,643  

Hyundai Green Power Co., Ltd.

      407,491        29.00 %      118,173        —         —        —        118,173  

Korea Power Exchange

      274,286        100.00 %      274,286        —         —        —        274,286  

SPC Power Corporation

      258,764        38.00 %      98,330        —         —        (19,399 )      78,931  

Gemeng International Energy Co., Ltd.

      2,317,545        42.00 %      973,369        —         —        (267,557 )      705,812  

PT. Cirebon Electric Power

      488,215        27.50 %      134,259        —         —        —        134,259  

PT Wampu Electric Power

      75,120        46.00 %      34,555        —         —        —        34,555  

PT. Bayan Resources TBK

      2,428,465        20.00 %      485,693        209,894        —        (76,380 )      619,207  

S-Power Co., Ltd.

      334,591        49.00 %      163,950        —         (1,185 )      —        162,765  

Xe-Pian Xe-Namnoy Power Co., Ltd.

      469,397        25.00 %      117,349        305        (987 )      (289 )      116,378  

Goseong Green Power Co., Ltd.

      1,001,702        29.00 %      290,494        —         (2,870 )      —        287,624  

Gangneung Eco Power Co., Ltd.

      716,901        29.00 %      207,901        48,531        (1,503 )      —        254,929  

Shin Pyeongtaek Power Co., Ltd.

      390,335        40.00 %      156,134        3,559        (14,667 )      —        145,026  

Dongducheon Dream Power Co., Ltd.

      294,848        34.01 %      100,278        1,757        (2,249 )      (12,583 )      87,203  

GS Donghae Electric Power Co., Ltd.

      762,013        34.00 %      259,085        —         —        —        259,085  

Nepal Water & Energy Development Company Private Limited

      159,265        68.88 %      109,701        872        —        —        110,573  

Indeck Niles Development, LLC

      482,200        50.00 %      241,100        90,074        —        4,227       335,401  

Saemangeum Sebit Power Plant Co., Ltd.

      67,286        55.00 %      37,009        182        —        —        37,191  

PT. Cirebon Energi Prasarana

      765,973        10.00 %      76,597        —         —        —        76,597  

<Joint ventures>

                  

Shuweihat Asia Power Investment B.V.

      142,660        49.00 %      69,902        —         —        —        69,902  

KEPCO SPC Power Corporation

      261,362        75.20 %      196,544        —         —        —        196,544  

Datang Chifeng Renewable Power Co., Ltd.

      466,847        40.00 %      186,739        —         —        —        186,739  

Datang KEPCO Chaoyang Renewable Power Co., Ltd.

      108,017        40.00 %      43,207        —         —        —        43,207  

Rabigh Electricity Company

      701,614        40.00 %      280,646        —         (45,692 )      97       235,051  

Jamaica Public Service Company Limited

      840,820        40.00 %      336,328        29,357        —        (15,819 )      349,866  

Amman Asia Electric Power Company

      372,373        60.00 %      223,424        —         —        —        223,424  

Chun-cheon Energy Co., Ltd.

      118,152        29.90 %      35,327        3        —        (247 )      35,083  

Nghi Son 2 Power LLC

      835,977        50.00 %      417,989        —         —        —        417,989  

Kelar S.A.

      197,779        65.00 %      128,557        2,972        —        —        131,529  

PT. Tanjung Power Indonesia

      257,574        35.00 %      90,151        —         —        —        90,151  

South Jamaica Power Company Limited

      215,559        20.00 %      43,112        —         —        (3 )      43,109  

RE Holiday Holdings LLC

      168,184        50.00 %      84,092        —         —        —        84,092  

RE Pioneer Holdings LLC

      108,162        50.00 %      54,081        —         —        —        54,081  

RE Barren Ridge 1 Holdings LLC

      116,307        50.00 %      58,154        —         —        —        58,154  

Solar Philippines Calatagan Corporation

      108,382        38.00 %      41,185        —         —        16,945       58,130  

Pulau Indah Power Plant Sdn. Bhd.

      79,841        25.00 %      19,960        5,643        —        —        25,603  

PT Barito Wahana Tenaga

      512,846        30.61 %      156,994        —         —        —        156,994  

Cheongna Energy Co., Ltd.

      47,107        50.10 %      23,601        3,137        (1,189 )      —        25,549  

OneEnergy Asia Limited

      661,133        40.00 %      264,454        25,512        —        —        289,966  

Prime Swedish Holding AB

      83,481        45.00 %      37,566        1,223        —        —        38,789  

 

(*)

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

 

66

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(6)

As of March 31, 2024 and December 31, 2023, unrecognized equity interests in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Unrecognized
equity interest		      Accumulated
unrecognized
equity interest		      Unrecognized
equity interest		      Accumulated
unrecognized
equity interest		  

Eurasia Energy Holdings

    W —         —         (203 )       —   

Boim Combined Heat and Power Generation Co., Ltd.

      (133 )       27,821        937        27,954  

Samcheok Eco Materials Co., Ltd.

      211        4,642        3,625        4,431  

Naepo Green Energy Co., Ltd.

      —         —         (14,956 )       —   

Barakah One Company

      64,333        205,052        46,746        140,719  

Pioneer Gas Power Limited

      9,917        86,629        19,835        76,712  

Bigeum Resident Photovoltaic Power Co., Ltd.

      —         —         (460 )       —   

KAPES, Inc.

      1,529        4,544        (145 )       3,015  

ITR Co., Ltd.

      (1 )       —         (4 )       1  

SEP Co., Ltd.

      —         15        1        15  

International Offshore Power Transmission

Holding Company Limited

      —         —         (23,378 )       —   

Noeul Green Energy Co., Ltd.

      (570 )       4,642        (258 )       5,212  

Gangneung Eco Power Co., Ltd.

      —         —         (14 )       —   

PlatformN. Co., Ltd.

      26        88        62        62  

KEPCO KPS CARABAO Corp.

      19        56        37        37  

Bitsolar Energy Co., Ltd.

      1,423        1,423        —         —   

Green Energy Electricity Generation Co., Ltd.

      496        496        —         —   

 

(7)

As of March 31, 2024, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

 

  (i)

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 in the EPC contract 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.

 

  (ii)

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.

 

  (iii)

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.

 

  (iv)

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.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(7)

As of March 31, 2024, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

 

  (v)

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.

 

  (vi)

Hyundai Green Power Co., Ltd.

The Group has an obligation to purchase certain shares in Hyundai Green Power Co., Ltd. from financial investors holding certain shares in Hyundai Green Power Co., Ltd. (i.e., IBK and others) when any of the financial investors claim to sell the Group’s shares at a certain point of time in the future. The Group also has the right to claim 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.

 

  (vii)

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.

 

  (viii)

Omisan Wind Power Co., Ltd.

The Group has the right to claim Unison Co., Ltd. to transfer its shares in Omisan Wind Power Co., Ltd. either as a whole or as a part after the completion of the power generation complex, and if the Group exercises its right to claim transfer, Unison Co., Ltd. is obliged to transfer such shares at fair value to the Group or a third party designated by the Group.

 

  (ix)

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.

 

  (x)

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 Seungmun 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.

 

  (xi)

Taebaek Guinemi Wind Power Co., Ltd.

If shareholders of Taebaek Guinemi Wind Power Co., Ltd. other than the Group intend to sell their shares after the elapse of warranty period for wind power generators specified in the EPC contract, the Group has preferential right to other parties and third parties to take over the shares that the shareholders want to sell at fair value by reaching agreement with the shareholders on the timing of sales and volume of shares to be sold considering the financial conditions, management conditions and others.

 

  (xii)

HORANG ENERGY Inc.

The Group has the right to purchase all or partial shares of HORANG ENERGY Inc. held by other shareholders after three years have elapsed from the date of commencing the operations under the unanimous agreement of all shareholders. The Group also has an obligation to sell its shares in HORANG ENERGY Inc. either as a whole or as a part to CNcore Co., Ltd. after three years have elapsed from the date of commencing the operations upon the claim of CNcore Co., Ltd., under the unanimous agreement of all shareholders.

 

  (xiii)

Namyangju Combined Heat and Power Co., Ltd.

The Group has an obligation to purchase certain shares from Narae Energy Co., Ltd. at fair value when Narae Energy Co., Ltd. intends to sell its shares in Namyangju Combined Heat and Power Co., Ltd. on the exercise date agreed upon in accordance with the shareholders’ agreement. If Narae Energy Co., Ltd. becomes the largest equity holder by selling, assigning, or transferring shares in accordance with the shareholders’ agreement, the Group is obligated to guarantee the drag-along right that allows Narae Energy Co., Ltd. to sell the shares held by both shareholders under the same conditions.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(7)

As of March 31, 2024, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

 

  (xiv)

Wadi Noor Solar Power Company SAOC

The Group has an obligation to purchase certain shares to Nama Holding SAOC at the price agreed upon between shareholders when Nama Holding SAOC intends to purchase shares on the exercise date agreed upon according to the shareholders’ agreement.

 

  (xv)

Jeongeup Green Power Co., Ltd.

The Group has the right to acquire the shares held by M Eco Co., Ltd. at fair value on the date when it has been third, seventh, and tenth year from the beginning date of commercial operation. However, if M Eco Co., Ltd. transfers its shares to the entity holding the majority of shares in M Eco Co., Ltd., its right to transfer shares to the shareholder prevails the Group’s right to acquire shares from M Eco Co., Ltd.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(8)

Significant restrictions on the Group’s abilities on associates and joint ventures as of March 31, 2024 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 and 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 written consent of the financial institutions.
Daeryun Power Co., Ltd.    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 financial institutions.
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 stakeholders including shareholders and financial institutions.
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 prior written consent of other shareholders.
Naepo Green Energy Co., Ltd.    Dividends can only be paid to shareholders when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. 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.    Principals and interests on subordinated loans or 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 other stakeholders including shareholders and financial institutions.
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 written consent of the other shareholders.
Taebaek Guinemi Wind Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied and consent of the financial institutions is obtained. Also, shares cannot be wholly or partially transferred without the written consent of the financial institutions.
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.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2024 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, and prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without the consent of the stakeholders including other shareholders financial institutions. 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 become 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.
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.
KPE 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 amount 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 either wholly or partially transferred without the consent of the stakeholders.
HORANG ENERGY Inc.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be either wholly or partially transferred before three years have passed 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.
Yanggu Floating Photovoltaic Power Plant Inc.    Payment of dividends or repayment of loans such as subordinated loans to the investors can be made only when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Hoenggye Renewable Energy Co., Ltd.    Dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2024 are as follows, continued:

 

Company

   

Nature and extent of any significant restrictions

Daegu Photovoltaic Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be either wholly or partially transferred without prior written consent of financial institutions is obtained.
Dongducheon Dream Power Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid only when all conditions of the loan agreement are satisfied. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Haeng Bok Do Si Photovoltaic Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be either wholly or partially transferred without prior consent of the stakeholders.
Shin Pyeongtaek Power Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Seoroseoro Sunny Power Plant Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Anjwa Smart Farm & Solar City Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Muan Solar Park Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred without prior written consent of the financial institutions is obtained.
YuDang Solar Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Haemodum Solar Co., Ltd.    Principals and interest payments 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 written consent of the financial institutions is obtained.
Cheongna Energy Co., Ltd.    Principals and interest payments on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred without prior written consent of the financial institutions is obtained.
Hapcheon Floating Photovoltaic Power Plant Inc.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Yeongwol Eco Wind Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Gurae Resident Power Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Gunsan Land Solar Co., Ltd.    Principals and interest payments 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 written consent of the financial institutions is obtained. When the internal rate of return defined in shareholders’ agreement is met, any excessive dividend income must be provided to Gunsan City.
Eumseong 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 and prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of the financial institutions is obtained.
PungBack Wind Farm Corporation    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

17.

Investments in Associates and Joint Ventures, Continued

 

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2024 are as follows, continued:

 

Company

   

Nature and extent of any significant restrictions

Seobusambo highway photovoltaics Co., Ltd.    Principals and interest on subordinated loans or dividends can be paid either when all conditions of the loan agreement are satisfied or when prior written consent of financial institutions is obtained. Shares cannot be either wholly or partially transferred without prior written consent of the financial institutions.
Haman 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 or prior written consent of financial institutions is obtained. In addition, the Group cannot transfer all or part of its shares without the consent of other shareholders until five years have elapsed from the date of issuance of the acquisition notice after the comprehensive completion of the EPC contract for the project, and shares cannot be wholly or partially transferred without prior written consent of the financial institutions is obtained.
Jeongeup Green Power Co., Ltd.    Dividends to investors are only possible when the conditions in the loan agreement are met or prior written consent from the financial institution is obtained, and subordinated loans cannot be paid to investors before the loan principal and interest are fully repaid. Additionally, all or part of the shares held cannot be transferred without the consent of other shareholders before the commencement of commercial operation of this business. The entity’s stocks may not be transferred to a third party or otherwise disposed of in a manner not permitted in the financial documents without the prior written consent of the agent bank.

Nepal Water & Energy Development

Company Private Limited

    The Group must maintain a minimum percentage of ownership (50%) until the project completion date and thereafter.
Goseong Green Power Co., Ltd.    The Group cannot transfer all or part of its shares without the consent of stakeholders until three years have passed since the start of commercial operation of the business.
Gangneung Eco Power Co., Ltd.    The Group cannot transfer all or part of its shares without the consent of stakeholders until three years have passed since the start of commercial operation of the business.
S-Power Co., Ltd.    Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred without prior consent of the stakeholders is obtained.
South Jamaica Power Company Limited    Dividends can be paid only when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Rutile BESS Holdings, LLC    Shares cannot be either wholly or partially transferred without prior written consent of other shareholders.
Kumyang Eco Park Co., Ltd.    Dividends and payables from settlement for renewable energy certificates can only be paid when all conditions of the loan agreement are satisfied or a prior written consent of financial institutions is obtained.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

18.

Property, Plant and Equipment

 

(1)

Property, plant and equipment as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Acquisition cost      Government
grants		     Accumulated
depreciation		     Accumulated
impairment
losses		     Book
value		  

Land

    W 14,402,664        (27,403 )      —        (28,081 )      14,347,180  

Buildings

      25,317,674        (45,014 )      (12,080,497 )      (5,751 )      13,186,412  

Structures

      86,906,585        (155,415 )      (35,772,362 )      (9,525 )      50,969,283  

Machinery

      114,588,512        (115,517 )      (60,829,872 )      (536,386 )      53,106,737  

Ships

      17,845        —        (5,945 )      —        11,900  

Vehicles

      421,211        (2,570 )      (347,105 )      (116 )      71,420  

Equipment

      2,367,660        (5,403 )      (1,953,983 )      (376 )      407,898  

Tools

      1,365,062        (53 )      (1,208,044 )      (1 )      156,964  

Construction-in-progress

      34,060,759        (184,299 )      —        (22,795 )      33,853,665  

Right-of-use assets

      6,068,279        —        (2,803,484 )      —        3,264,795  

Asset retirement costs

      17,163,611        —        (7,643,906 )      (146,422 )      9,373,283  

Others

      16,642,901        —        (14,349,666 )      —        2,293,235  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 319,322,763        (535,674 )      (136,994,864 )      (749,453 )      181,042,772  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

In millions of won    December 31, 2023  
     Acquisition cost      Government
grants		     Accumulated
depreciation		     Accumulated
impairment
losses		     Book
value		  

Land

    W 14,426,253        (27,404 )      —        (28,165 )      14,370,684  

Buildings

      25,236,830        (46,227 )      (11,870,875 )      (5,751 )      13,313,977  

Structures

      86,010,823        (157,881 )      (35,111,297 )      (9,525 )      50,732,120  

Machinery

      113,735,035        (119,824 )      (59,381,603 )      (536,386 )      53,697,222  

Ships

      17,845        —        (5,480 )      —        12,365  

Vehicles

      421,349        (2,837 )      (337,859 )      (116 )      80,537  

Equipment

      2,341,242        (5,932 )      (1,909,992 )      (375 )      424,943  

Tools

      1,354,532        (62 )      (1,190,057 )      (1 )      164,412  

Construction-in-progress

      32,031,297        (173,474 )      —        (22,795 )      31,835,028  

Right-of-use assets

      6,041,794        —        (2,678,051 )      —        3,363,743  

Asset retirement costs

      17,007,088        —        (7,127,091 )      (146,423 )      9,733,574  

Others

      16,255,667        —        (14,108,737 )      —        2,146,930  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 314,879,755        (533,641 )      (133,721,042 )      (749,537 )      179,875,535  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

18.

Property, Plant and Equipment, Continued

 

(2)

Changes in property, plant and equipment for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		     Acquisition      Disposal     Depreciation     Impairment      Others     Ending
balance		  

Land

    W 14,398,088       60        (18,627 )      —        —         (4,938 )      14,374,583  

(Government grants)

      (27,404 )      —         1       —        —         —        (27,403 ) 

Buildings

      13,360,204       719        (3,678 )      (229,546 )      —         103,727       13,231,426  

(Government grants)

      (46,227 )      —         —        1,217       —         (4 )      (45,014 ) 

Structures

      50,890,001       5,600        (73,088 )      (706,161 )      —         1,008,346       51,124,698  

(Government grants)

      (157,881 )      —         106       2,368       —         (8 )      (155,415 ) 

Machinery

      53,817,046       101,090        (47,479 )      (1,566,964 )      —         918,561       53,222,254  

(Government grants)

      (119,824 )      —         63       4,129       —         115       (115,517 ) 

Ships

      12,365       —         —        (465 )      —         —        11,900  

Vehicles

      83,374       344        (158 )      (10,500 )      —         930       73,990  

(Government grants)

      (2,837 )      —         7       293       —         (33 )      (2,570 ) 

Equipment

      430,875       18,066        (27 )      (51,228 )      —         15,615       413,301  

(Government grants)

      (5,932 )      —         —        529       —         —        (5,403 ) 

Tools

      164,474       3,913        —        (18,992 )      —         7,622       157,017  

(Government grants)

      (62 )      —         —        9       —         —        (53 ) 

Construction-in-progress

      32,008,502       3,582,960        —        —        —         (1,553,498 )      34,037,964  

(Government grants)

      (173,474 )      13        —        —        —         (10,838 )      (184,299 ) 

Right-of-use assets

      3,363,743       31,841        (237 )      (138,160 )      —         7,608       3,264,795  

Asset retirement costs

      9,733,574       42        —        (559,316 )      —         198,983       9,373,283  

Others

      2,146,930       779        —        (239,349 )      —         384,875       2,293,235  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
   W 179,875,535       3,745,427        (143,117 )      (3,512,136 )      —         1,077,063       181,042,772  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

18.

Property, Plant and Equipment, Continued

 

(2)

Changes in property, plant and equipment for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows, continued:

 

In millions of won    December 31, 2023  
     Beginning
balance		     Acquisition      Disposal     Depreciation     Impairment (*)     Others     Ending
balance		  

Land

    W 14,270,937       23,519        (15,302 )      —        —        118,934       14,398,088  

(Government grants)

      (27,405 )      —         1       —        —        —        (27,404 ) 

Buildings

      13,292,200       3,706        (6,221 )      (938,549 )      —        1,009,068       13,360,204  

(Government grants)

      (50,437 )      —         —        5,070       —        (860 )      (46,227 ) 

Structures

      50,449,235       18,486        (311,877 )      (2,828,065 )      —        3,562,222       50,890,001  

(Government grants)

      (165,608 )      —         1,611       9,562       —        (3,446 )      (157,881 ) 

Machinery

      54,191,785       184,532        (195,673 )      (6,062,471 )      (6,331 )      5,705,204       53,817,046  

(Government grants)

      (127,126 )      —         1,230       17,413       —        (11,341 )      (119,824 ) 

Ships

      13,476       —         —        (1,812 )      —        701       12,365  

Vehicles

      87,687       5,778        (76 )      (40,760 )      —        30,745       83,374  

(Government grants)

      (2,045 )      —         —        960       —        (1,752 )      (2,837 ) 

Equipment

      435,741       62,291        (264 )      (206,894 )      —        140,001       430,875  

(Government grants)

      (6,608 )      —         —        2,011       —        (1,335 )      (5,932 ) 

Tools

      178,501       30,598        (364 )      (78,487 )      —        34,226       164,474  

(Government grants)

      (99 )      —         —        38       —        (1 )      (62 ) 

Construction-in-progress

      28,041,471       14,069,968        (1,511 )      —        (10,700 )      (10,090,726 )      32,008,502  

(Government grants)

      (135,926 )      5,544        —        —        —        (43,092 )      (173,474 ) 

Right-of-use assets

      3,711,125       261,862        (2,613 )      (536,517 )      —        (70,114 )      3,363,743  

Asset retirement costs

      11,288,967       —         —        (1,251,446 )      —        (303,947 )      9,733,574  

Others

      2,419,437       1,290        —        (958,649 )      —        684,852       2,146,930  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W 177,865,308       14,667,574        (531,059 )      (12,868,596 )      (17,031 )      759,339       179,875,535  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

The Group calculated the actual damage in relation to the fire incident at Taean IGCC gas refinery in January 2023, and recognized W6,331 million as an impairment loss. In addition, as the recoverable amount of construction-in-progress of Guam Ukudu Power LLC, a subsidiary of the Group, is less than the book value, W10,700 million was recognized as an impairment loss during the year ended December 31, 2023.

 

(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 W57,457 million (W38,149 million for the prior year) as revenue and W35,943 million (W45,578 million for the prior year) as expense in profit or loss for the three-month period ended March 31, 2024.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

19.

Investment Properties

 

(1)

Investment properties as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Acquisition
cost		      Government
grants		      Accumulated
depreciation		      Book
value		  

Land

    W 193,490        —         —         193,490  

Buildings

      26,390        (19 )       (10,697 )       15,674  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 219,880        (19 )       (10,697 )       209,164  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  
     Acquisition
cost		      Government
grants		      Accumulated
depreciation		      Book
value		  

Land

    W 172,594        —         —         172,594  

Buildings

      20,043        (22 )       (7,088 )       12,933  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 192,637        (22 )       (7,088 )       185,527  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2)

Changes in investment properties for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Disposal      Depreciation      Others      Ending
balance		  

Land

    W 172,594        —         —         20,896        193,490  

Buildings

      12,955        —         (159 )       2,897        15,693  

(Government grants)

      (22 )       —         —         3        (19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 185,527        —         (159 )       23,796        209,164  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  
     Beginning
balance		      Disposal      Depreciation      Others      Ending
balance		  

Land

    W 194,417        —         —         (21,823 )       172,594  

Buildings

      13,890        —         (494 )       (441 )       12,955  

(Government grants)

      (21 )       —         1        (2 )       (22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 208,286        —         (493 )       (22,266 )       185,527  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

19.

Investment Properties, Continued

 

(3)

Income and expenses related to investment properties for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Rental income

    W 2,907        2,501  

Operating and maintenance expenses related to rental income

      (164 )       (116 ) 
  

 

 

     

 

 

  
   W 2,743        2,385  
  

 

 

     

 

 

  

 

(4)

Fair value of investment properties as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Book value      Fair value      Book value      Fair value  

Land

    W 193,490        288,894        172,594        258,478  

Buildings

      15,674        16,321        12,933        13,437  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 209,164        305,215        185,527        271,915  
  

 

 

     

 

 

     

 

 

     

 

 

  

The Group determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Group. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined in consideration of the fluctuation on the publicly announced individual land price after the KIFRS transition date (January 1, 2010).

 

(5)

All of the Group’s investment properties are held under freehold interests.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

20.

Construction Contracts

 

(1)

Changes in the total contract amount in which revenue is not yet recognized for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Increase
(decrease) (*)		      Recognized
as
revenue		      Ending
balance		  

Nuclear power plant construction in overseas and others

    W 5,795,600          233,643        (85,506 )       5,943,737  

 

(*)

For the three-month period ended March 31, 2024, the increased balance of contracts from new orders is W234,618 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W975 million.

 

In millions of won    December 31, 2023  
     Beginning
balance		      Increase
(decrease) (*)		      Recognized
as
revenue		      Ending
balance		  

Nuclear power plant construction in overseas and others

    W 5,594,946          986,049        (785,395 )       5,795,600  

 

(*)

For the year ended December 31, 2023, the increased balance of contracts from new orders is W1,029,165 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W43,116 million.

 

(2)

Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Accumulated
earned revenue		      Accumulated
expense		      Accumulated
profit		      Unearned
advance receipts		  

Nuclear power plant construction in overseas and others

    W 22,991,718        22,431,844        559,874        73,913  

 

In millions of won    December 31, 2023  
     Accumulated
earned revenue		      Accumulated
expense		      Accumulated
profit		      Unearned
advance receipts		  

Nuclear power plant construction in overseas and others

    W 22,996,785        22,382,628        614,157        74,253  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

20.

Construction Contracts, Continued

 

(3)

The gross amounts due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract works as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Contract
assets (*1)		      Contract
liabilities (*2)		      Contract
assets (*1)		      Contract
liabilities (*2)		  

Nuclear power plant construction in overseas and others

    W 208,885        286,438        183,204        270,789  

 

(*1)

Included in trade and other receivables, net, in the consolidated statements of financial position.

(*2)

Included in non-financial liabilities as advance received in the consolidated statements of financial position. The revenue recognized on March 31, 2024 from the amounts included in contract liabilities at the end of the prior year is W38,682 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 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

      August 25, 2022        April 8, 2029  

 

(5)

Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the three-month period ended March 31, 2024 is as follows:

 

In millions of won

   March 31, 2024  
    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

   W—        (56,006 )      (52,100 )      (3,906 )      57,764       —        118,805       15,427       —        —   

Electric power generation (Nuclear)

     —        40,381       496       39,885       104,600       —        —        —        —        —   

Plant maintenance & engineering Service

     2,576       6,185       4,669       1,516       12,223       1,346       90,080       3       71,911       6,608  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  W 2,576       (9,440 )      (46,935 )      37,495       174,587       1,346       208,885       15,430       71,911       6,608  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

21.

Intangible Assets other than Goodwill

 

(1)

Intangible assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Acquisition cost      Government
grants		     Accumulated
amortization		     Accumulated
impairment
losses		     Book
value		  

Software

    W 1,098,069        (383 )      (908,075 )      (19 )      189,592  

Copyrights, patents rights and other industrial rights

      98,134        —        (66,536 )      (9,178 )      22,420  

Mining rights

      644,893        —        (63,509 )      (552,355 )      29,029  

Development expenditures

      968,371        (1,782 )      (917,762 )      —        48,827  

Intangible assets under development

      109,134        (2,799 )      —        (8,903 )      97,432  

Usage rights of donated assets and others

      592,724        —        (450,225 )      (136 )      142,363  

Leasehold rights

      28,185        —        (24,496 )      —        3,689  

Greenhouse gas emissions rights

      129,092        —        —        —        129,092  

Others

      599,254        (298 )      (205,896 )      (11,968 )      381,092  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 4,267,856        (5,262 )      (2,636,499 )      (582,559 )      1,043,536  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

In millions of won    December 31, 2023  
     Acquisition cost      Government
grants		     Accumulated
amortization		     Accumulated
impairment
losses		     Book
value		  

Software

    W 1,083,537        (413 )      (885,677 )      (19 )      197,428  

Copyrights, patents rights and other industrial rights

      105,827        —        (73,158 )      (9,178 )      23,491  

Mining rights

      643,625        —        (57,549 )      (553,911 )      32,165  

Development expenditures

      966,530        (2,121 )      (911,096 )      —        53,313  

Intangible assets under development

      94,916        (2,458 )      —        (8,903 )      83,555  

Usage rights of donated assets and others

      592,739        —        (447,352 )      (136 )      145,251  

Leasehold rights

      28,185        —        (24,256 )      —        3,929  

Greenhouse gas emissions rights

      107,086        —        —        —        107,086  

Others

      599,958        (322 )      (199,865 )      (12,005 )      387,766  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 4,222,403        (5,314 )      (2,598,953 )      (584,152 )      1,033,984  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

21.

Intangible Assets other than Goodwill, Continued

 

(2)

Changes in intangible assets for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		     Acquisition      Disposal     Amortization     Impairment     Others     Ending
balance		  

Software

    W 197,841       2,015        —        (21,477 )      —        11,596       189,975  

(Government grants)

      (413 )      —         —        30       —        —        (383 ) 

Copyrights, patents rights and other industrial rights

      23,491       9        (44 )      (1,100 )      —        64       22,420  

Mining rights

      32,165       807        —        (2,520 )      —        (1,423 )      29,029  

Development expenditures

      55,434       —         —        (6,337 )      —        1,512       50,609  

(Government grants)

      (2,121 )      —         —        339       —        —        (1,782 ) 

Intangible assets under development

      86,013       17,348        —        —        —        (3,130 )      100,231  

(Government grants)

      (2,458 )      —         —        —        —        (341 )      (2,799 ) 

Usage rights of donated assets and others

      145,251       —         —        (2,888 )      —        —        142,363  

Leasehold rights

      3,929       —         —        (240 )      —        —        3,689  

Greenhouse gas emissions rights

      107,086       —         —        (12 )      —        22,018       129,092  

Others

      388,088       1,199        (422 )      (6,300 )      —        (1,175 )      381,390  

(Government grants)

      (322 )      —         —        1       —        23       (298 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W 1,033,984       21,378        (466 )      (40,504 )      —        29,144       1,043,536  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
In millions of won    December 31, 2023  
     Beginning
balance		     Acquisition      Disposal     Amortization     Impairment     Others     Ending
balance		  

Software

    W 203,007       12,837        (18 )      (86,174 )      —        68,189       197,841  

(Government grants)

      (174 )      —         —        85       —        (324 )      (413 ) 

Copyrights, patents rights and other industrial rights

      28,013       319        (70 )      (4,918 )      (180 )      327       23,491  

Mining rights

      38,525       2,164        —        (10,289 )      —        1,765       32,165  

Development expenditures

      54,505       —         —        (25,614 )      —        26,543       55,434  

(Government grants)

      (3,477 )      —         —        1,356       —        —        (2,121 ) 

Intangible assets under development

      67,722       51,282        —        —        —        (32,991 )      86,013  

(Government grants)

      (2,108 )      —         —        —        —        (350 )      (2,458 ) 

Usage rights of donated assets and others

      157,143       —         —        (11,857 )      —        (35 )      145,251  

Leasehold rights

      4,888       —         —        (959 )      —        —        3,929  

Greenhouse gas emissions rights

      43,960       8,577        (1 )      (2 )      —        54,552       107,086  

Others

      364,727       4,136        (119 )      (24,895 )      (103 )      44,342       388,088  

(Government grants)

      (67 )      —         —        93       —        (348 )      (322 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W 956,664       79,315        (208 )      (163,174 )      (283 )      161,670       1,033,984  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

21.

Intangible Assets other than Goodwill, Continued

 

(3)

Significant specific intangible assets as of March 31, 2024 and December 31, 2023 are as follows:

In millions of won and thousands of Australian dollars

March 31, 2024

Type

   

Description

    Currency      Amount     

Remaining useful lives

Software

   

S/4HANA ERP license

      KRW        5,376      3 years and 8 months

Copyrights, patents rights and other industrial rights

   

Contributions to APR NRC DC

      KRW        15,653      3 years and 9 months

Mining rights

   

Mining rights of Bylong mine

      AUD        —       — (*)

Usage rights of donated assets and others

   

Sejong Haengbogdosi sharing charge

      KRW        12,100      2 years and 8 months
  

Right of use electricity and gas supply facility (Community district of Songdo)

      KRW        6,590      6 years and 3 months

Others

   

Occupancy and use of public waters

      KRW        69,448      12 years and 10 months
  

Greenhouse gas emissions rights

      KRW        129,092      — 
  

Business rights

      KRW        147,527      25 years and 8 months

 

(*)   The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

 

In millions of won and thousands of Australian dollars

December 31, 2023

Type

   

Description

    Currency      Amount     

Remaining useful lives

Software

   

S/4HANA ERP license

      KRW        5,742      3 years and 11 months

Copyrights, patents rights and other industrial rights

   

Contributions to APR NRC DC

      KRW        16,697      4 years

Mining rights

   

Mining rights of Bylong mine

      AUD        —       — (*)

Usage rights of donated assets and others

   

Sejong Haengbogdosi sharing charge

      KRW        13,235      2 years and 11 months
  

Right of use electricity and gas supply facility (Community district of Songdo)

      KRW        6,853      6 years and 6 months

Others

   

Occupancy and use of public waters

      KRW        70,800      13 years and 1 month
  

Greenhouse gas emissions rights

      KRW        107,086      — 
  

Business rights

      KRW        148,964      25 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 each of the three-month periods ended March 31, 2024 and 2023, the Group recognized research and development expenses of W166,308 million and W151,886 million, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

22.

Trade and Other Payables

Trade and other payables as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Trade payables

    W 4,522,912        —         4,341,482        —   

Non-trade payables

      2,148,296        1,701,053        2,140,906        1,716,345  

Accrued expenses

      1,924,949        4,139        1,859,765        23,148  

Leasehold deposits received

      2,553        2,096        2,548        1,042  

Other deposits received

      65,628        72,426        127,933        33,723  

Lease liabilities

      617,338        3,158,671        612,765        3,195,115  

Dividends payable

      62,511        —         4,574        —   

Others (*)

      —         10,081        —         12,584  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 9,344,187        4,948,466        9,089,973        4,981,957  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Details of others as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Advance received from local governments

    W —         3,069        —         3,069  

Others

      —         7,012        —         9,515  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W —         10,081        —         12,584  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities

 

(1)

Borrowings and debt securities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Current liabilities

      

Short-term borrowings

    W 6,508,107        10,667,335  

Current portion of long-term borrowings

      6,177,979        5,780,638  

Current portion of debt securities

      29,485,354        24,681,439  

Less: current portion of discount on long-term borrowings

      (1,172 )       (1,152 ) 

Less: current portion of discount on debt securities

      (7,226 )       (7,176 ) 

Add: current portion of premium on debt securities

      141        263  
  

 

 

     

 

 

  
     42,163,183        41,121,347  
  

 

 

     

 

 

  

Non-current liabilities

      

Long-term borrowings

      3,499,572        3,407,514  

Debt securities

      84,966,318        89,293,561  

Less: discount on long-term borrowings

      (14,589 )       (14,683 ) 

Less: discount on debt securities

      (181,600 )       (175,909 ) 
  

 

 

     

 

 

  
     88,269,701        92,510,483  
  

 

 

     

 

 

  
   W 130,432,884        133,631,830  
  

 

 

     

 

 

  

 

(2)

Repayment schedules of borrowings and debt securities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won              

March 31, 2024

  

Type

    Borrowings      Debt Securities  

Less than 1 year

    W 12,686,086        29,485,354  

1~ 5 years

      1,616,924        61,008,607  

More than 5 years

      1,882,648        23,957,711  
  

 

 

     

 

 

  
   W 16,185,658        114,451,672  
  

 

 

     

 

 

  

 

In millions of won              

December 31, 2023

  

Type

    Borrowings      Debt Securities  

Less than 1 year

    W 16,447,973        24,681,439  

1~ 5 years

      1,649,696        64,342,617  

More than 5 years

      1,757,818        24,950,944  
  

 

 

     

 

 

  
   W 19,855,487        113,975,000  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(3)

Short-term borrowings as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won and thousands of USD  

March 31, 2024

  

Type

   

Creditor

    Interest rate (%)      Maturity    Foreign
currency		      Local
currency		  

Local short-term borrowings

   

DB financial investment and others

      3.57~4.60      2024.04.01~2024.12.31      —       W 2,035,363  

Local short-term borrowings

   

Nonghyup Bank and others

      3M CD+0.98~1.12      2024.05.26~2024.11.20      —         4,300,000  

Local short-term borrowings

   

Export-Import Bank of Korea

      3M bank debenture rate+0.34      2024.12.27      —         50,000  

Foreign short-term borrowings

   

Export-Import Bank of Korea

            5.49            2024.09.27      USD 40,000        53,872  

Foreign short-term borrowings

   

Kookmin Bank

      1M SOFR+0.95      2024.08.13      USD 40,000        53,872  

Local bank overdraft

   

Nonghyup Bank

      3M MOR+1.20      2024.06.06      —         15,000  
              

 

 

  
               W 6,508,107  
              

 

 

  

 

In millions of won and thousands of USD  

December 31, 2023

  

Type

   

Creditor

    Interest rate (%)      Maturity      Foreign
currency		      Local
currency		  

Local short-term borrowings

   

DB financial investment and others

      4.00~4.84        2024.01.05~2024.12.31        —       W 6,180,339  

Local short-term borrowings

   

Nonghyup Bank and others

      3M CD+0.98~1.12        2024.05.26~2024.11.20        —         4,300,000  

Local short-term borrowings

   

Korea Development Bank

      Standard overdraft rate+1.06        2024.02.24        —         30,000  

Local short-term borrowings

   

Export-Import Bank of Korea

      3M bank debenture rate+0.34        2024.12.27        —         50,000  

Foreign short-term borrowings

   

Export-Import Bank of Korea

            5.49              2024.09.27        USD 40,000        51,576  

Foreign short-term borrowings

   

Kookmin Bank

      1M SOFR+0.95        2024.02.16        USD 40,000        51,576  

Local bank overdraft

   

Woori Bank and others

     

 Standard overdraft rate+1.37

4.63~5.34

  

 

      2024.01.05~2024.02.23        —         3,844  
              

 

 

  
               W 10,667,335  
              

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won  

March 31, 2024

  

Type

    Interest rate (%)    Maturity    Foreign
currency		      Local
currency		  
                         

Local long-term borrowings

 

Korea Development Bank

    Others    0.50    2024~2044      —       W 1,743  
   Facility    2.60~4.94    2025~2042      —         53,682  
   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    2024~2029      —         5,750,000  
   Facility    4.60    2028      —         6,151  
   Facility    3yr KTB rate-2.50    2028      —         2,990  

Export-Import Bank of Korea

    Project loans    1.00    2026      —         7,365  
   Facility    1.32    2025~2028      —         76,000  
   Operating funds    3M bank debenture
rate+0.66		    2026      —         50,000  

Korea Energy Agency

    Development of power resources    3yr KTB rate-2.25

2.25

    2024~2028      —         8,737  
   Facility    3yr KTB rate-1.50    2024      —         107  
   Project loans    —     2033      —         1,197  

Shinhan Bank and others

    Facility    CB rate+0.90~1.10    2028~2029      —         16,216  
   Operating funds    6M bank debenture
rate+0.93		    2025      —         20,000  
   Commercial Paper    3M CD+0.38    2025      —         150,000  
   Others    3.95    2034      —         72,022  
   Others    Standard overdraft
rate+1.00		    2034      —         72,022  

Kookmin Bank

    Facility    3M CD+1.79~2.10

5.85

    2030~2037      —         165,471  
   Operating funds    1yr bank debenture
rate+0.78		    2025      —         20,000  

Woori Bank

    Facility    Standard overdraft
rate+1.60

3M CD+1.90

5.85

    2034~2042      —         102,292  

IBK

    Facility    4.00~5.80    2042~2044      —         30,690  

Nonghyup Bank

    Facility    3M CD+2.00~2.10    2030~2041      —         23,800  

Others

    Facility    2.80~6.80    2024~2042      —         757,025  
   Facility    CB rate+1.10

3M CD+2.10
1.75

    2028~2041      —         25,772  
   PF Refinancing    CB rate+1.25    2030      —         6,441  
   PF Refinancing    4.10    2030      —         17,893  
   Securitized debts (*)    3M CD+1.80    2025      —         55,000  
   Others    4.40~7.90    2025~2039      —         113,850  
   Others    2.00~6.86    2031~2034      —         49,879  
              

 

 

  
               W 7,706,330  
              

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies  

March 31, 2024

  

Type

   

Interest rate (%)

    Maturity      Foreign
currency		      Local
currency		  
                           

Foreign long-term borrowings

         

Korea Energy Agency

    Project loans    —       2026      USD 8,744      W 11,776  

Export-Import Bank of Korea and others

    Direct Loan and others    6M Synthetic Libor+1.80~3.20      2036      USD 78,413        105,607  
   Direct Loan and others    6M Synthetic Libor+2.25~3.70      2027      JOD 62,473        118,673  
   Facility    6M Synthetic
Libor+1.70~2.50
1M SOFR+1.83		      2029~2031      USD 117,291        157,968  

Korea Development

Bank and others

    EBL    1M SOFR+0.86      2025      USD 142,049        191,311  

POSCO E&C and others

    Shareholder’s loan    5.60~8.00      2025      USD 10,770        14,505  
   Shareholder’s loan    8.00      2031      JOD 4,765        9,051  

Samsung Life Insurance and others

    Syndicated Loan    3.10~8.00      2032      JPY 4,054,658        36,065  

Woori Bank and others

    Syndicated Loan    JPY 6M Tibor+1.84      2032      JPY 2,208,139        19,641  

Solar Construction Lending, LLC

    Facility    5.00      2025      USD 29,894        40,261  

Kiwoom Solar Power Professional Investor Private Placement Investment Trust V

    Senior borrowing    3.90      2029      EUR 40,877        59,391  

IFC and others

    Facility    3M SOFR+1.99
6M SOFR+5.00
3M BSBY+1.70
6.19~7.19		      2024~2032      USD 678,075        913,231  

Hanwha US Solar Private Fund and others

    Facility    6.00      2039      USD 60,820        81,912  

DBS Bank and others

    Facility    1M BBSY+1.40~2.25      2025      AUD 183,141        160,695  

Nonghyup Bank and others

    Facility    10.40      2039      USD 37,966        51,134  
              

 

 

  
                 1,971,221  
              

 

 

  
                 9,677,551  

Less: discount on long-term borrowings

            (15,761 ) 

Less: current portion of long-term borrowings

            (6,177,979 ) 

Add: current portion of discount on long-term borrowings

            1,172  
              

 

 

  
      W 3,484,983  
        

 

 

  

 

(*)

The main reasons for early repayment of securitized debts as of March 31, 2024 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.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won  

December 31, 2023

  

Type

   

Interest rate (%)

    Maturity      Foreign
currency		      Local
currency		  
                           

Local long-term borrowings

 

Korea Development Bank

    Others    0.50      2024~2044        —       W 1,758  
   Facility    2.60~4.94      2025~2042        —         53,052  
   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      2024~2028        —         5,350,000  
   Facility    4.60      2028        —         6,558  
   Facility    3yr KTB rate-2.50      2028        —         3,156  

Export-Import Bank of Korea

    Project loans    1.00      2026        —         7,365  
   Facility    1.32      2028        —         80,000  
   Operating funds    3M bank debenture rate+0.66      2026        —         40,000  

Korea Energy Agency

    Development of power resources    3yr KTB rate-2.25 2.25      2024~2028        —         9,176  
   Facility    3yr KTB rate-1.50      2024        —         163  
   Project loans    —       2033        —         1,197  

Shinhan Bank and others

    Facility    CB rate+0.90~1.10      2028~2029        —         16,825  
   Operating funds    6M bank debenture rate+0.93      2025        —         20,000  
   Commercial Paper    3M CD+0.38      2025        —         150,000  
   Others    3.95      2034        —         73,425  
   Others    Standard overdraft rate+1.00      2034        —         73,425  

Kookmin Bank

    Facility   

1yr bank debenture rate+0.78

3M CD+1.79~2.10

5.04

      2025~2037        —         186,032  

Woori Bank

    Facility   

Standard overdraft rate+1.60

3M CD+1.90

5.04

      2034~2042        —         101,172  

IBK

    Facility    4.00~5.80      2042~2044        —         30,690  

Nonghyup Bank

    Facility    3M CD+2.00~2.10      2030~2041        —         22,517  

Others

    Facility    3.50~6.80      2028~2042        —         735,722  
   Facility   

CB rate+1.10

3M CD+2.10

1.75~3.30

      2024~2041        —         51,509  
   PF Refinancing    CB rate+1.25      2030        —         6,680  
   PF Refinancing    4.10      2030        —         18,556  
   Securitized debts (*)    3M CD+1.80      2025        —         52,060  
   Others    4.40~7.90      2025~2039        —         113,973  
   Others    1.80~4.50      2031~2034        —         49,879  
     

 

 

  
               W 7,304,875  
              

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(4)

Long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies

December 31, 2023

  

Type

    Interest rate (%)    Maturity    Foreign
currency		      Local
currency		  
                              

Foreign long-term borrowings

         

Korea Energy Agency

    Project loans    —     2026    USD 8,744      W 11,274  

Export-Import Bank of Korea and others

    Direct Loan and others    6M Synthetic
Libor+1.80~3.20		    2036    USD 78,347        101,020  
   Direct Loan and others    6M Synthetic
Libor+2.25~3.70		    2027    JOD 62,385        113,390  
   Facility    6M Synthetic
Libor+1.70~2.50
1M SOFR+1.83		    2029~2031    USD 120,916        155,909  

Korea Development Bank and others

    EBL    1M SOFR+0.86    2025    USD 142,049        183,157  

POSCO E&C and others

    Shareholder’s loan    5.60~8.00    2025    USD 10,770        13,887  
   Shareholder’s loan    8.00    2031    JOD 5,419        9,850  

Samsung Life Insurance and others

    Syndicated Loan    3.10~8.00    2032    JPY 4,350,671        39,707  

Woori Bank and others

    Syndicated Loan    JPY 6M Tibor+1.84    2032    JPY 2,399,088        21,896  

Solar Construction Lending, LLC

    Facility    5.00    2025    USD 29,894        38,545  

Kiwoom Solar Power Professional Investor Private Placement Investment Trust V

    Senior borrowing    3.90    2029    EUR 40,478        57,745  

IFC and others

    Facility    3M SOFR+1.99

6M SOFR+5.00
3M BSBY+1.70
6.05~6.62

    2024~2031    USD 655,922        845,746  

Hanwha US Solar Private

Fund and others

    Facility    6.00    2039    USD 60,674        78,233  

DBS Bank and others

    Facility    1M BBSY+1.40~2.25    2025    AUD 185,086        162,891  

Nonghyup Bank and others

    Facility    10.40    2039    USD 38,799        50,027  
              

 

 

  
                 1,883,277  
              

 

 

  
                 9,188,152  

Less: discount on long-term borrowings

         (15,835 ) 

Less: current portion of long-term borrowings

         (5,780,638 ) 

Add: current portion of discount on long-term borrowings

         1,152  
              

 

 

  
      W 3,392,831  
              

 

 

  

 

(*)

The main reasons for early repayment of securitized debts as of December 31, 2023 are as follows:

 

Type

  

Details

Non-payment of proceeds   Where the consignor fails to pay the principal to the trustee
Guarantees for supplemental funding   Where the consignor fails to fulfill guarantees for supplemental funding
Additional trust obligation   Where the consignor fails to fulfill the additional trust obligation
Event of default   In case the event of default occurs under the ABL loan agreement

The Group is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(5)

Local debt securities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won                      
     Issue date      Maturity      Interest rate (%)      March 31, 2024     December 31, 2023  

Electricity Bonds

      2012.03.27~2023.09.11        2024.04.05~2052.04.21        1.43~5.99      W 65,820,000       67,730,000  

Corporate Bonds (*)

      2009.10.16~2024.03.25        2024.04.02~2053.11.10        1.28~10.00        30,307,353       29,887,353  

Corporate Bonds

      2021.05.26~2023.12.28        2041.05.25~2043.09.15        2.50~3.78        41,578       41,578  
           

 

 

    

 

 

  
              96,168,931       97,658,931  

Less: discount on local debt securities

 

         (53,757 )      (54,826 ) 

Less: current portion of local debt securities

 

      (27,831,584 )      (23,141,584 ) 

Add: current portion of discount on local debt securities

 

      4,527       4,712  
           

 

 

    

 

 

  
            W 68,288,117       74,467,233  
           

 

 

    

 

 

  

 

(*)

Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to W1,584 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.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(6)

Foreign debt securities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won and thousands of foreign currencies              

March 31, 2024

  

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      W 375,355  

FY-97

    1997.01.31~1997.08.04    2027.02.01~2027.08.01    6.75~7.00    USD  314,717        423,861  

FY-04

    2004.04.23    2034.04.23    5.13    USD  286,920        386,424  

FY-14

    2014.07.30    2029.07.30    3.57    USD  100,000        134,680  

FY-15

    2015.06.15    2025.06.15    3.25    USD  300,000        404,040  

FY-17

    2017.07.25    2027.07.25    3.13    USD  300,000        404,040  

FY-17

    2017.10.30    2037.10.30    1.70    EUR  40,000        58,117  

FY-17

    2017.11.16    2037.11.16    2.36    SEK  450,000        56,619  

FY-18

    2018.03.13    2028.03.13    3.35    HKD   1,650,000        283,965  

FY-19

    2019.06.24    2024.06.24    2.50    USD  500,000        673,400  

FY-19

    2019.07.19    2024.07.19~2027.07.19    0.00~0.05    CHF  300,000        448,137  

FY-19

    2019.10.30    2024.10.30    3M BBSW+0.97    AUD  300,000        263,232  

FY-19

    2019.12.19    2037.12.31    3.30~5.70    USD  337,577        454,649  

FY-20

    2020.02.03    2025.02.03    2.13    USD  300,000        404,040  

FY-20

    2020.05.06    2025.05.06    1.75    USD  500,000        673,400  

FY-20

    2020.06.15    2025.06.15    1.13    USD  500,000        673,400  

FY-20

    2020.08.03    2026.02.03    1.00    USD  300,000        404,040  

FY-21

    2021.01.27    2026.01.27    0.75    USD  450,000        606,060  

FY-21

    2021.04.27    2026.04.27    1.25    USD  500,000        673,400  

FY-21

    2021.08.09    2026.08.09    1.25    USD  300,000        404,040  

FY-21

    2021.09.24    2026.09.24    1.13    USD  300,000        404,040  

FY-22

    2022.04.21    2027.04.21    3.63    USD  300,000        404,040  

FY-22

    2022.05.06    2025.05.06    3.60    USD  500,000        673,400  

FY-22

    2022.06.14    2025.06.14~2027.06.14    3.63~4.00    USD  800,000        1,077,440  

FY-22

    2022.06.28    2025.06.28    4.13    USD  300,000        404,040  

FY-22

    2022.07.27    2027.07.27    4.25    USD  700,000        942,760  

FY-22

    2022.10.06    2026.04.06~2028.04.06    5.38~5.50    USD  800,000        1,077,440  

FY-22

    2022.10.06~2022.11.01    2032.10.06    5.16    HKD  2,350,000        404,435  

FY-23

    2023.06.07    2030.06.07    4.51    HKD  1,037,000        178,468  

FY-23

    2023.07.12    2028.07.12    4.88    USD  350,000        471,380  

FY-23

    2023.07.18    2028.07.18    5.00    USD  500,000        673,400  

FY-23

    2023.07.31    2026.07.31    5.38    USD  1,000,000        1,346,800  

FY-23

    2023.09.21    2026.09.21    5.38    USD  300,000        404,040  

FY-24

    2024.01.31    2027.01.31    4.88    USD  1,200,000        1,616,159  
              

 

 

  
                 18,282,741  

Less: discount on foreign debt securities

 

      (135,069 ) 

Add: addition on foreign debt securities

 

      141  

Less: current portion of foreign debt securities

 

      (1,653,770 ) 

Add: current portion of discount on foreign debt securities

 

      2,699  

Less: current portion of addition on foreign debt securities

 

      (141 ) 
              

 

 

  
               W 16,496,601  
              

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

23.

Borrowings and Debt Securities, Continued

 

(6)

Foreign debt securities as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won and thousands of foreign currencies                

December 31, 2023

  

Type

    Issue date      Maturity      Interest rate (%)      Foreign
currency		      Local
currency		  

FY-96

      1996.04.01~1996.12.06        2026.12.01~2096.04.01        6.00~7.95      USD    278,701        W   359,357  

FY-97

      1997.01.31~1997.08.04        2027.02.01~2027.08.01        6.75~7.00      USD 314,717        405,796  

FY-04

      2004.04.23        2034.04.23        5.13      USD 286,920        369,955  

FY-14

      2014.07.30        2029.07.30        3.57      USD 100,000        128,940  

FY-15

      2015.06.15        2025.06.15        3.25      USD 300,000        386,820  

FY-17

      2017.07.25        2027.07.25        3.13      USD 300,000        386,820  

FY-17

      2017.10.30        2037.10.30        1.70      EUR 40,000        57,064  

FY-17

      2017.11.16        2037.11.16        2.36      SEK 450,000        58,050  

FY-18

      2018.03.13        2028.03.13        3.35      HKD  1,650,000        272,349  

FY-19

      2019.02.27        2024.02.27        0.13      CHF 200,000        305,364  

FY-19

      2019.06.24        2024.06.24        2.50      USD 500,000        644,700  

FY-19

      2019.07.19        2024.07.19~2027.07.19        0.00~0.05      CHF 300,000        458,046  

FY-19

      2019.10.30        2024.10.30        3M BBSW+0.97      AUD 300,000        264,024  

FY-19

      2019.12.19        2037.12.31        3.30~5.70      USD 342,753        441,946  

FY-20

      2020.02.03        2025.02.03        2.13      USD 300,000        386,820  

FY-20

      2020.05.06        2025.05.06        1.75      USD 500,000        644,700  

FY-20

      2020.06.15        2025.06.15        1.13      USD 500,000        644,700  

FY-20

      2020.08.03        2026.02.03        1.00      USD 300,000        386,820  

FY-21

      2021.01.27        2026.01.27        0.75      USD 450,000        580,230  

FY-21

      2021.04.27        2026.04.27        1.25      USD 500,000        644,700  

FY-21

      2021.08.09        2026.08.09        1.25      USD 300,000        386,820  

FY-21

      2021.09.24        2026.09.24        1.13      USD 300,000        386,820  

FY-22

      2022.04.21        2027.04.21        3.63      USD 300,000        386,820  

FY-22

      2022.05.06        2025.05.06        3.60      USD 500,000        644,700  

FY-22

      2022.06.14        2025.06.14~2027.06.14        3.63~4.00      USD 800,000        1,031,520  

FY-22

      2022.06.28        2025.06.28        4.13      USD 300,000        386,820  

FY-22

      2022.07.27        2027.07.27        4.25      USD 700,000        902,580  

FY-22

      2022.10.06        2026.04.06~2028.04.06        5.38~5.50      USD 800,000        1,031,520  

FY-22

      2022.10.06~2022.11.01        2032.10.06        5.16      HKD 2,350,000        387,891  

FY-23

      2023.06.07        2030.06.07        4.51      HKD 1,037,000        171,167  

FY-23

      2023.07.12        2028.07.12        4.88      USD 350,000        451,290  

FY-23

      2023.07.18        2028.07.18        5.00      USD 500,000        644,700  

FY-23

      2023.07.31        2026.07.31        5.38      USD 1,000,000        1,289,400  

FY-23

      2023.09.21        2026.09.21        5.38      USD 300,000        386,820  
              

 

 

  
                 16,316,069  

Less: discount on foreign debt securities

 

      (128,259)  

Add: addition on foreign debt securities

 

      263  

Less: current portion of foreign debt securities

 

      (1,539,855)  

Add: current portion of discount on foreign debt securities

 

      2,464  

Less: current portion of addition on foreign debt securities

 

      (263)  
              

 

 

  
     W14,650,419  
              

 

 

  

 

(7)

Changes in borrowings and debt securities for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Beginning balance

    W 133,631,830        120,605,365  

Cash flow

      (3,950,651 )       5,230,068  

Effect of exchange rate fluctuations

      757,494        506,782  

Others

      (5,789 )       (21,308 ) 
  

 

 

     

 

 

  

Ending balance

    W 130,432,884        126,320,907  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 W39,039 million and W42,955 million respectively, as expense for each of the three-month periods ended March 31, 2024 and 2023. 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 W5 million), and recognized W823 million and W604 million respectively, as expense for each of the three-month periods ended March 31, 2024 and 2023. The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

 

(2)

Right-of-use assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Acquisition
cost		      Accumulated
depreciation		      Book
value		  

Land

    W 946,213        (296,378 )       649,835  

Buildings

      197,180        (102,410 )       94,770  

Structures

      51,409        (9,990 )       41,419  

Machinery

      26,714        (22,066 )       4,648  

Ships

      4,137,168        (1,918,753 )       2,218,415  

Vehicles

      59,763        (36,505 )       23,258  

Others (*)

      649,832        (417,382 )       232,450  
  

 

 

     

 

 

     

 

 

  
   W 6,068,279        (2,803,484 )       3,264,795  
  

 

 

     

 

 

     

 

 

  

 

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

 

In millions of won    December 31, 2023  
     Acquisition
cost		      Accumulated
depreciation		      Book
value		  

Land

    W 937,481        (281,621 )       655,860  

Buildings

      188,017        (97,444 )       90,573  

Structures

      46,573        (9,217 )       37,356  

Machinery

      26,453        (20,510 )       5,943  

Ships

      4,137,168        (1,823,863 )       2,313,305  

Vehicles

      59,208        (33,717 )       25,491  

Others (*)

      646,894        (411,679 )       235,215  
  

 

 

     

 

 

     

 

 

  
   W 6,041,794        (2,678,051 )       3,363,743  
  

 

 

     

 

 

     

 

 

  

 

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

24.

Lease, Continued

 

(3)

Changes in right-of-use assets for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Increase      Depreciation      Decrease      Others      Ending
balance		  

Land

    W 655,860        8,807        (14,534 )       —         (298 )       649,835  

Buildings

      90,573        13,824        (13,864 )       (170 )       4,407        94,770  

Structures

      37,356        4,111        (1,752 )       —         1,704        41,419  

Machinery

      5,943        299        (1,556 )       —         (38 )       4,648  

Ships

      2,313,305        —         (94,890 )       —         —         2,218,415  

Vehicles

      25,491        1,906        (3,618 )       (67 )       (454 )       23,258  

Others

      235,215        2,894        (7,946 )       —         2,287        232,450  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,363,743        31,841        (138,160 )       (237 )       7,608        3,264,795  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  
     Beginning
balance		      Increase      Depreciation      Decrease      Others      Ending
balance		  

Land

    W 661,799        2,696        (57,461 )       (126 )       48,952        655,860  

Buildings

      74,856        24,622        (32,591 )       (904 )       24,590        90,573  

Structures

      23,965        49        (2,471 )       (273 )       16,086        37,356  

Machinery

      835        —         (94 )       —         5,202        5,943  

Ships

      2,596,863        199,538        (382,298 )       —         (100,798 )       2,313,305  

Vehicles

      14,716        21,097        (10,464 )       (1,008 )       1,150        25,491  

Others

      338,091        13,860        (51,138 )       (302 )       (65,296 )       235,215  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 3,711,125        261,862        (536,517 )       (2,613 )       (70,114 )       3,363,743  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

24.

Lease, Continued

 

(4)

Lease liabilities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Less than 1 year

    W 651,662        641,525  

1 ~ 5 years

      1,893,864        1,898,846  

More than 5 years

      1,669,922        1,694,729  
  

 

 

     

 

 

  
     4,215,448        4,235,100  

Less: discount

      (439,439 )       (427,220 ) 
  

 

 

     

 

 

  

Present value of lease payment

    W 3,776,009        3,807,880  
  

 

 

     

 

 

  

 

(5)

Details of the liquidity classification of lease liabilities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won      March 31, 2024        December 31, 2023  

Current lease liabilities

    W 617,338        612,765  

Non-current lease liabilities

      3,158,671        3,195,115  
  

 

 

     

 

 

  
   W 3,776,009        3,807,880  
    

 

     

 

  

 

(6)

Changes in lease liabilities for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Increase      Decrease     Interest
expenses		      Others (*)      Ending
balance		  

Lease liabilities

    W 3,807,880        41,443        (205,882 )      20,925        111,643        3,776,009  

 

(*)

Including translation effect of foreign currency lease liabilities and others.

 

In millions of won    December 31, 2023  
     Beginning
balance		      Increase      Decrease     Interest
expenses		      Others (*)     Ending
balance		  

Lease liabilities

    W 4,163,143        253,495        (661,665 )      87,426        (34,519 )      3,807,880  

 

(*)

Including translation effect of foreign currency lease liabilities and others.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

24.

Lease, Continued

 

(7)

Details of expense relating to lease contracts as lessee for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Depreciation of right-of-use assets

    W 138,160        134,478  

Interest expenses of lease liabilities

      20,925        20,648  

Leases expenses for short-term leases

      39,039        42,955  

Leases expenses for leases of low-value assets

      823        604  

Variable lease payments

      (3,700 )       2,389  
  

 

 

     

 

 

  
   W 195,247        201,074  
  

 

 

     

 

 

  

 

(8)

The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value asset, amounts to W242,044 million and W230,245 million, for each of the three-month periods ended March 31, 2024 and 2023, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 19 energy storage system installation projects and 163 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 each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Finance income on the net investment in the lease

    W 28,862        28,979  

 

(3)

Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Less than 1 year

    W 199,962        189,779  

1 ~ 2 years

      191,346        182,743  

2 ~ 3 years

      196,044        179,428  

3 ~ 4 years

      183,394        178,074  

4 ~ 5 years

      173,519        168,221  

More than 5 years

      1,428,183        1,408,350  
  

 

 

     

 

 

  
     2,372,448        2,306,595  

Less: unearned finance income

      (1,076,568 )       (1,057,434 ) 
  

 

 

     

 

 

  

Net investment in the lease (*)

    W 1,295,880        1,249,161  
  

 

 

     

 

 

  

 

(*)

Including the present value of unguaranteed residual value amounting to W27,269 million and W25,521 million, as of March 31, 2024 and December 31, 2023, 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 16.99% per year as of March 31, 2024. (0.00%~17.03% for the prior year)

 

(4)

Changes in the allowance for doubtful accounts of finance lease receivables for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 5,256        4,505  

Bad debt expense

      —         751  

Reversal

      (171 )       —   
  

 

 

     

 

 

  

Ending balance

    W 5,085        5,256  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

25.

Employment Benefits

 

(1)

Employment benefit obligations as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Net defined benefit asset

    W 47,209        70,187  

Net defined benefit obligations

      1,141,672        1,033,409  

Other long-term employee benefit obligations

      1,871        1,911  

 

(2)

Principal assumptions used for actuarial valuation as of March 31, 2024 and December 31, 2023 are as follows:

 

     March 31, 2024   December 31, 2023

Discount rate

    4.07%~5.65%   4.06%~5.44%

Future salary and benefit levels

    4.83%   4.82%

Weighted average duration

    9.43 years   9.52 years

 

(3)

Details of expense relating to defined benefit plans for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Current service cost

    W 102,763        90,266  

Interest cost

      43,171        45,816  

Expected return on plan assets

      (33,548 )       (38,784 ) 
  

 

 

     

 

 

  
   W 112,386        97,298  
  

 

 

     

 

 

  

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

 

In millions of won    March 31, 2024      March 31, 2023  

Cost of sales

    W 79,858        68,686  

Selling and administrative expenses

      21,518        18,333  

Others including construction-in-progress

      11,010        10,279  
  

 

 

     

 

 

  
   W 112,386        97,298  
  

 

 

     

 

 

  

In addition, for the three-month periods ended March 31, 2024 and 2023, benefit expenses which the Group paid for the defined contribution plan in accordance with ratio defined in the Group’s retirement benefit plan are classified as follows: W20,865 million and W24,417 million as cost of sales; W3,850 million and W3,438 million as selling and administrative expenses; and W3,528 million and W4,695 million as construction-in-progress and others.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

25.

Employment Benefits, Continued

 

(4)

Details of defined benefit obligations as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Present value of defined benefit obligation from funded plans

    W 4,429,784        4,312,702  

Fair value of plan assets

      (3,335,321 )       (3,349,480 ) 
  

 

 

     

 

 

  

Net liabilities incurred from defined benefit plans

    W 1,094,463        963,222  
  

 

 

     

 

 

  

 

(5)

Changes in the present value of defined benefit obligations for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 4,312,702        3,776,715  

Current service cost

      102,763        373,802  

Interest cost

      43,171        190,257  

Remeasurement component

      47,293        409,635  

Actual payments

      (76,174 )       (437,734 ) 

Others

      29        27  
  

 

 

     

 

 

  

Ending balance

    W 4,429,784        4,312,702  
  

 

 

     

 

 

  

 

(6)

Changes in the fair value of plan assets for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 3,349,480        3,149,414  

Expected return

      33,548        163,074  

Remeasurement component

      (262 )       4,777  

Contributions by the employers

      180        188,566  

Actual payments

      (47,625 )       (156,351 ) 
  

 

 

     

 

 

  

Ending balance

    W 3,335,321        3,349,480  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

25.

Employment Benefits, Continued

 

(7)

Details of the fair value of plan assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Equity instruments

    W 8,172        5,326  

Debt instruments

      684,906        697,907  

Bank deposits

      619,915        611,821  

Others (*)

      2,022,328        2,034,426  
  

 

 

     

 

 

  
   W 3,335,321        3,349,480  
  

 

 

     

 

 

  

 

(*)

‘Others’ consist of various financial instruments managed by external asset management companies.

For the three-month period ended March 31, 2024 and for the year ended December 31, 2023, actual returns on plan assets amounted to W33,286 million and W167,851 million, respectively.

 

(8)

Remeasurement components recognized in other comprehensive income (loss) for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Actuarial loss (gain) from changes in financial assumptions

    W (4,540 )       429,810  

Actuarial loss (gain) from experience adjustments, etc.

      51,833        (20,175 ) 

Expected loss (return)

      262        (4,777 ) 
  

 

 

     

 

 

  
   W 47,555        404,858  
  

 

 

     

 

 

  

Remeasurement component recognized as other comprehensive income or loss is included in retained earnings.

In addition, gain on accumulated remeasurement component amounting to W150,897 million and gain on accumulated remeasurement component amounting to W29,229 million have been recognized as other comprehensive income or loss as of March 31, 2024 and December 31, 2023, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

26.

Provisions

 

(1)

Provisions as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
   Current      Non-current      Current      Non-current  

Employment benefits

            

Provisions for employment benefits

    W 1,074,506        —         999,691        —   

Litigation

            

Litigation provisions

      5,307        138,861        5,299        171,719  

Decommissioning cost

            

Nuclear plants

      81,684        21,696,575        81,684        21,565,203  

Spent fuel

      829,176        2,095,232        940,585        1,985,149  

Radioactive waste

      68,310        1,860,861        67,572        1,840,513  

PCBs

      —         53,507        —         57,944  

Other recovery provisions

      —         36,486        —         36,082  

Others

            

Power plant regional support program

      175,315        —         130,034        —   

Transmission regional support program

      229,645        —         256,006        —   

Provisions for financial guarantee

      26,746        20,552        25,534        24,458  

Provisions for RPS

      146,444        18,475        36,074        —   

Provisions for greenhouse gas emissions obligations

      12,448        —         18,672        —   

Others

      159,173        178,241        92,974        199,976  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 2,808,754        26,098,790        2,654,125        25,881,044  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2)

Changes in provisions for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Increase in
provision		      Payment     Reversal     Others     Ending
balance		  

Employment benefits

               

Provisions for employment benefits

    W 999,691        298,018        (223,203 )      —        —        1,074,506  

Litigation

               

Litigation provisions

      177,018        3,206        (14,197 )      (21,859 )      —        144,168  

Decommissioning cost

               

Nuclear plants

      21,646,887        145,071        (13,686 )      —        (13 )      21,778,259  

Spent fuel

      2,925,734        242,097        (243,423 )      —        —        2,924,408  

Radioactive waste

      1,908,085        25,395        (4,309 )      —        —        1,929,171  

PCBs

      57,944        307        (4,744 )      —        —        53,507  

Other recovery provisions

      36,082        303        (700 )      —        801       36,486  

Others

               

Power plant regional support program

      130,034        55,561        (10,280 )      —        —        175,315  

Transmission regional support program

      256,006        1,085        (27,446 )      —        —        229,645  

Provisions for financial guarantee

      49,992        1,899        (4,684 )      —        91       47,298  

Provisions for RPS

      36,074        295,654        (166,809 )      —        —        164,919  

Provisions for greenhouse gas emissions obligations

      18,672        118        —        (6,342 )      —        12,448  

Others

      292,950        77,489        (30,574 )      (2,641 )      190       337,414  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 28,535,169        1,146,203        (744,055 )      (30,842 )      1,069       28,907,544  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

26.

Provisions, Continued

 

(2)

Changes in provisions for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows, continued:

 

In millions of won    December 31, 2023  
     Beginning
balance		      Increase in
provision		      Payment     Reversal     Others     Ending
balance		  

Employment benefits

               

Provisions for employment benefits

    W 1,045,058        834,102        (877,933 )      (1,536 )      —        999,691  

Litigation

               

Litigation provisions

      181,179        151,189        (67,478 )      (87,872 )      —        177,018  

Decommissioning cost

               

Nuclear plants

      23,035,427        572,379        (62,035 )      (1,898,935 )      51       21,646,887  

Spent fuel

      1,426,918        1,877,827        (379,011 )      —        —        2,925,734  

Radioactive waste

      1,990,007        89,054        (86,823 )      (84,153 )      —        1,908,085  

PCBs

      88,359        1,699        (17,100 )      (15,014 )      —        57,944  

Other recovery provisions

      32,770        1,319        (432 )      —        2,425       36,082  

Others

               

Power plant regional support program

      144,504        51,814        (66,284 )      —        —        130,034  

Transmission regional support program

      239,235        177,520        (160,749 )      —        —        256,006  

Provisions for financial guarantee

      67,240        10,215        (25,174 )      (2,251 )      (38 )      49,992  

Provisions for RPS

      24,339        620,855        (609,120 )      —        —        36,074  

Provisions for greenhouse gas emissions obligations

      298,876        77,207        (298,859 )      (58,552 )      —        18,672  

Others

      217,781        181,756        (101,601 )      (3,816 )      (1,170 )      292,950  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
   W 28,791,693        4,646,936        (2,752,599 )      (2,152,129 )      1,268       28,535,169  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

27.

Government Grants

 

(1)

Government grants as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Land

    W 27,403        27,404  

Buildings

      45,014        46,227  

Structures

      155,415        157,881  

Machinery

      115,517        119,824  

Vehicles

      2,570        2,837  

Equipment

      5,403        5,932  

Tools

      53        62  

Construction-in-progress

      184,299        173,474  

Investment properties

      19        22  

Software

      383        413  

Development expenditures

      1,782        2,121  

Intangible assets under development

      2,799        2,458  

Other intangible assets

      298        322  
  

 

 

     

 

 

  
   W 540,955        538,977  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

27.

Government Grants, Continued

 

(2)

Changes in government grants for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     Beginning
balance		      Receipt      Acquisition     Offset the
items of
depreciation
expense and
others		     Disposal     Revenue      Others     Ending
balance		  

Cash

    W —         11,564        —        —        —        —         (11,564 )      —   

Land

      27,404        —         —        —        (1 )      —         —        27,403  

Buildings

      46,227        —         —        (1,217 )      —        —         4       45,014  

Structures

      157,881        —         —        (2,368 )      (106 )      —         8       155,415  

Machinery

      119,824        —         —        (4,129 )      (63 )      —         (115 )      115,517  

Vehicles

      2,837        —         —        (293 )      (7 )      —         33       2,570  

Equipment

      5,932        —         —        (529 )      —        —         —        5,403  

Tools

      62        —         —        (9 )      —        —         —        53  

Construction-in-progress

      173,474        —         (13 )      —        —        —         10,838       184,299  

Investment properties

      22        —         —        —        —        —         (3 )      19  

Software

      413        —         —        (30 )      —        —         —        383  

Development expenditures

      2,121        —         —        (339 )      —        —         —        1,782  

Intangible assets under development

      2,458        —         —        —        —        —         341       2,799  

Other intangible assets

      322        —         —        (1 )      —        —         (23 )      298  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
   W 538,977        11,564        (13 )      (8,915 )      (177 )      —         (481 )      540,955  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

In millions of won    December 31, 2023  
     Beginning
balance		      Receipt      Acquisition     Offset the
items of
depreciation
expense and
others		     Disposal     Revenue      Others     Ending
balance		  

Cash

    W —         57,207        —        —        —        239        (57,446 )      —   

Land

      27,405        —         —        —        (1 )      —         —        27,404  

Buildings

      50,437        —         —        (5,070 )      —        —         860       46,227  

Structures

      165,608        —         —        (9,562 )      (1,611 )      —         3,446       157,881  

Machinery

      127,126        —         —        (17,413 )      (1,230 )      —         11,341       119,824  

Vehicles

      2,045        —         —        (960 )      —        —         1,752       2,837  

Equipment

      6,608        —         —        (2,011 )      —        —         1,335       5,932  

Tools

      99        —         —        (38 )      —        —         1       62  

Construction-in-progress

      135,926        —         (5,544 )      —        —        —         43,092       173,474  

Investment properties

      21        —         —        (1 )      —        —         2       22  

Software

      174        —         —        (85 )      —        —         324       413  

Development expenditures

      3,477        —         —        (1,356 )      —        —         —        2,121  

Intangible assets under development

      2,108        —         —        —        —        —         350       2,458  

Other intangible assets

      67        —         —        (93 )      —        —         348       322  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
   W 521,101        57,207        (5,544 )      (36,589 )      (2,842 )      239        5,405       538,977  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

28.

Deferred Revenue

Deferred revenue for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows which are included in current and non-current non-financial liabilities in the consolidated statements of financial position:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 11,548,855        10,974,845  

Increase

      292,718        1,317,061  

Recognized as revenue

      (188,789 )       (743,051 ) 
  

 

 

     

 

 

  

Ending balance

    W 11,652,784        11,548,855  
  

 

 

     

 

 

  

 

29.

Non-financial Liabilities

Non-financial liabilities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Current      Non-current      Current      Non-current  

Advance received

    W 5,408,581        330,782        5,204,113        288,686  

Unearned revenue

      42,540        11,856        36,716        12,108  

Deferred revenue

      742,928        10,909,856        734,825        10,814,030  

Withholdings

      435,517        2,288        259,755        2,369  

Others

      1,956,145        77,106        1,646,254        78,807  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 8,585,711        11,331,888        7,881,663        11,196,000  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

30.

Contributed Capital

 

(1)

Details of share capital as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won except share information  
     March 31, 2024  
     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      W 5,000        1,640,385        1,569,435        3,209,820  

 

(*)

Korea Development Bank’s interest of W1,056,176 million is included.

 

In millions of won except share information  
     December 31, 2023  
     Shares
authorized		      Shares issued      Par value
per share
(in won)		      Owned by
government (*)		      Owned by
others		      Total  

Common shares

      1,200,000,000        641,964,077      W 5,000        1,640,385        1,569,435        3,209,820  

 

(*)

Korea Development Bank’s interest of W1,056,176 million is included.

 

(2)

Details in the number of floating capital stock for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

Number of shares    March 31, 2024      December 31, 2023  

Beginning balance

      641,964,077        641,964,077  
  

 

 

     

 

 

  

Ending balance

      641,964,077        641,964,077  
  

 

 

     

 

 

  

 

(3)

Details of share premium as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Share premium

    W 843,758        843,758  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

31.

Retained Earnings and Dividends Paid

 

(1)

Details of retained earnings as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Legal reserve (*)

    W 1,604,910        1,604,910  

Voluntary reserves

      —         2,812,313  

Retained earnings (undisposed deficit) before appropriations

      15,846,661        11,921,039  
  

 

 

     

 

 

  

Retained earnings

    W 17,451,571        16,338,262  
  

 

 

     

 

 

  

 

(*)

The KEPCO Act (Article 14) requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders.

 

(2)

Details of voluntary reserves as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Reserve for investment on social overhead capital

    W —         2,272,313  

Reserve for research and human development (*)

      —         330,000  

Reserve for equalizing dividends

      —         210,000  
  

 

 

     

 

 

  
   W —         2,812,313  
  

 

 

     

 

 

  

 

(*)

The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea.

 

(3)

Changes in retained earnings for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 16,338,262        21,431,300  

Profit (loss) for the year attributed to owners of the controlling company

      561,462        (4,822,549 ) 

Changes in equity method retained earnings

      635        (27,349 ) 

Remeasurements of defined benefit liability, net of tax

      (35,182 )       (242,987 ) 

Transfer of revaluation reserve

      586,394        —   

Others

      —         (153 ) 
  

 

 

     

 

 

  

Ending balance

    W 17,451,571        16,338,262  
  

 

 

     

 

 

  

 

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March 31, 2024 and 2023 (Unaudited)

 

31.

Retained Earnings and Dividends Paid, Continued

 

(4)

Dividends paid for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     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      W —         —   

 

In millions of won    December 31, 2023  
     Number of
shares issued		      Number of
treasury
stocks		      Number of
shares eligible for
dividends		      Dividends paid
per share
(in won)		      Dividends
paid		  

Common shares

      641,964,077        —         641,964,077      W —         —   

 

(5)

Changes in retained earnings of investments in associates and joint ventures for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W (11,074 )       16,275  

Changes

      635        (27,349 ) 
  

 

 

     

 

 

  

Ending balance

    W (10,439 )       (11,074 ) 
  

 

 

     

 

 

  

 

(6)

Changes in remeasurement components related to defined benefit liability for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Beginning balance

    W 29,229        614,805  

Changes

      (49,072 )       (376,121 ) 

Income tax effect

      13,890        133,134  

Transfer to reserve for business expansion

      156,850        (342,589 ) 
  

 

 

     

 

 

  

Ending balance

    W 150,897        29,229  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

32.

Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interests) as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won                                         

Issuer

    Hybrid bond      Issued date      Maturity      Yield (%)      March 31, 2024     December 31, 2023  

Korea South-East Power Co., Ltd. (*)

      2nd hybrid bond        2012.12.07        2042.12.06        4.44      W 230,000       230,000  

Expense of issuance

                  (627 )      (627 ) 
              

 

 

    

 

 

  
               W 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.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

33.

Other Components of Equity

 

(1)

Other components of equity as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Other capital surplus

    W 1,600,830        1,600,801  

Accumulated other comprehensive income

      887,856        557,430  

Other equity

      12,708,578        13,294,972  
  

 

 

     

 

 

  
   W 15,197,264        15,453,203  
  

 

 

     

 

 

  

 

(2)

Changes in other capital surplus for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
   Gains on
disposal of
treasury
stocks		      Others      Subtotal      Gains on
disposal of
treasury
stocks		      Others     Subtotal  

Beginning balance

    W 387,524        1,213,277        1,600,801        387,524        881,045       1,268,569  

Changes in consolidation scope

      —         —         —         —         (48 )      (48 ) 

Transactions between

consolidated entities

      —         29        29        —         332,280       332,280  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ending balance

    W 387,524        1,213,306        1,600,830        387,524        1,213,277       1,600,801  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

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March 31, 2024 and 2023 (Unaudited)

 

33.

Other Components of Equity, Continued

 

(3)

Changes in accumulated other comprehensive income (loss) for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     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

    W (20,002 )      943,733        (331,570 )      (34,731 )      557,430   

Changes in the unrealized fair value of financial assets at FVOCI, net of tax

      66,173       —         —        —        66,173  

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

      —        249,513        —        —        249,513  

Foreign currency translation of foreign operations, net of tax

      —        —         13,651       —        13,651  

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

      —        —         —        1,089       1,089  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ending balance

    W 46,171       1,193,246        (317,919 )      (33,642 )      887,856  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

In millions of won    December 31, 2023  
     Financial assets at
fair value through
other
comprehensive
income
valuation reserve		     Shares of other
comprehensive
income of
investments in
associates and joint
ventures		      Reserve
for overseas
operations
translation
credit		     Reserve for
gain (loss) on
valuation of
derivatives		     Total  

Beginning balance

    W 11,510       820,739        (305,620 )      (29,653 )      496,976  

Changes in the unrealized fair value of financial assets at FVOCI, net of tax

      (31,665 )      —         —        —        (31,665 ) 

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

      —        122,994        —        —        122,994  

Foreign currency translation of foreign operations, net of tax

      —        —         (25,950 )      —        (25,950 ) 

Net change in the unrealized

fair value of derivatives using cash flow hedge accounting, net of tax

      —        —         —        (5,078 )      (5,078 ) 

Others

      153       —         —        —        153  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ending balance

    W (20,002 )        943,733        (331,570 )      (34,731 )      557,430  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(4)

Other equities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Statutory revaluation reserve

    W 12,708,704        13,295,098  

Changes in other equity

      (126 )       (126 ) 
  

 

 

     

 

 

  
   W 12,708,578        13,294,972  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

34.

Sales

Details of sales for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  
     Domestic      Overseas      Total      Domestic      Overseas      Total  

[Type of goods and services]

 

            

Sales of goods

    W 22,775,171        75,577        22,850,748        21,064,184        79,321        21,143,505  

Electricity

      22,164,993        —         22,164,993        20,259,063        —         20,259,063  

Heat supply

      193,258        —         193,258        269,503        —         269,503  

Others

      416,920        75,577        492,497        535,618        79,321        614,939  

Sales related to rendering of services

      100,149        67,551        167,700        94,003        55,159        149,162  

Sales related to construction services

      24,687        60,819        85,506        36,900        82,620        119,520  

Revenue related to transfer of assets from customers

      188,789        —         188,789        181,835        —         181,835  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 23,088,796        203,947        23,292,743        21,376,922        217,100        21,594,022  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

[Timing of revenue recognition]

                  

Performance

Obligations satisfied at a point in time

    W 22,775,171        75,577        22,850,748        21,064,184        79,321        21,143,505  

Performance obligations satisfied over time

      313,625        128,370        441,995        312,738        137,779        450,517  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 23,088,796        203,947        23,292,743        21,376,922        217,100        21,594,022  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

35.

Selling and Administrative Expenses

Selling and administrative expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Salaries

    W 281,032        278,274  

Retirement benefit expense

      25,368        21,771  

Welfare and benefit expense

      31,546        35,132  

Insurance expense

      7,345        8,060  

Depreciation

      57,322        63,276  

Amortization of intangible assets

      21,875        21,010  

Bad debt expense (reversal of bad debt expense)

      10,175        (821 ) 

Commission

      105,200        102,351  

Advertising expense

      10,564        15,301  

Training expense

      2,073        1,823  

Vehicle maintenance expense

      1,973        2,244  

Publishing expense

      726        857  

Business promotion expense

      681        786  

Rent expense

      11,313        10,682  

Telecommunication expense

      2,567        2,188  

Transportation expense

      236        362  

Taxes and dues

      9,434        17,285  

Expendable supplies expense

      1,685        2,060  

Water, light and heating expense

      4,162        5,573  

Repairs and maintenance expense

      37,481        26,523  

Ordinary development expense

      38,140        40,995  

Travel expense

      4,486        4,256  

Clothing expense

      348        220  

Survey and analysis expense

      198        252  

Membership fee

      655        547  

Others

      23,628        30,580  
  

 

 

     

 

 

  
   W 690,213        691,587  
  

 

 

     

 

 

  

 

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March 31, 2024 and 2023 (Unaudited)

 

36.

Other Income and Expenses

 

(1)

Other income for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Reversal of other provisions

    W 21,812        10,586  

Gains on government grants

      —         60  

Gains on assets contributed

      882        2,022  

Gains on liabilities exempted

      155        102  

Compensation and reparations revenue

      20,690        18,947  

Revenue from foundation fund

      —         1  

Rental income

      56,643        51,835  

Others

      25,212        6,183  
  

 

 

     

 

 

  
   W 125,394        89,736  
  

 

 

     

 

 

  

 

(2)

Other expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Compensation and indemnification expense

    W 83        —   

Accretion expenses of other provisions

      114        345  

Depreciation expenses on investment properties

      159        123  

Depreciation expenses on idle assets

      910        914  

Other bad debt expense

      2,546        2,618  

Donations

      91,293        10,129  

Others

      7,411        6,941  
  

 

 

     

 

 

  
   W 102,516        21,070  
  

 

 

     

 

 

  

 

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March 31, 2024 and 2023 (Unaudited)

 

37.

Other Gains (Losses)

Composition of other gains (losses) for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Other gains

      

Gains on disposal of property, plant and equipment

    W 34,053        6,567  

Gains on disposal of intangible assets

      11        —   

Gains on foreign currency translation

      12,931        17,039  

Gains on foreign currency transactions

      17,088        47,934  

Others

      71,021        101,769  

Other losses

      

Losses on disposal of property, plant and equipment

      (17,983 )       (11,304 ) 

Losses on disposal of intangible assets

      (110 )       (57 ) 

Impairment loss on property, plant and equipment

      —         (2,021 ) 

Impairment loss on intangible assets

      —         (283 ) 

Losses on foreign currency translation

      (8,605 )       (9,740 ) 

Losses on foreign currency transactions

      (42,843 )       (74,404 ) 

Others

      (40,499 )       (62,236 ) 
  

 

 

     

 

 

  
   W 25,064        13,264  
  

 

 

     

 

 

  

 

38.

Finance Income

Finance income for the three-month periods ended March 31, 2024 and 2023 is as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Interest income

    W 118,441        102,946  

Dividends income

      78        189  

Gains on disposal of financial assets

      8,108        2,493  

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

      36,671        17,695  

Gains on valuation of derivatives

      705,362        437,863  

Gains on transaction of derivatives

      47,902        76,396  

Gains on foreign currency translation

      61,601        53,459  

Gains on foreign currency transactions

      8,352        5,491  

Others

      711        683  
  

 

 

     

 

 

  
   W 987,226        697,215  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

39.

Finance Expenses

Finance expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Interest expense

    W 1,151,729        1,048,078  

Losses on sale of financial assets

      27        217  

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

      238        974  

Losses on valuation of derivatives

      28,982        70,011  

Losses on transaction of derivatives

      13,600        48,608  

Losses on foreign currency translation

      799,035        521,835  

Losses on foreign currency transactions

      2,577        7,591  

Others

      5,065        503  
  

 

 

     

 

 

  
   W 2,001,253        1,697,817  
  

 

 

     

 

 

  

Capitalization rates for each of the three-month periods ended March 31, 2024 and 2023 are 2.44%~4.58% and 2.16%~5.17%, respectively.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

40.

Income Taxes

 

(1)

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 average effective tax rate for the three-month period ended March 31, 2024 is 19.23% and the average effective tax rate for the three-month period ended March 31, 2023 is not calculated due to income tax benefit.

 

(2)

Pillar Two Model Rules

Pillar Two Model Rules legislation has been enacted or substantively enacted in certain jurisdictions where the Group operates. According to the amended “Adjustment of International Taxes Act No. 19191”, the Group has adopted Pillar Two Model Rules legislation from fiscal year beginning on January 1, 2024. The Group is currently assessing the potential exposure arising from the Pillar Two legislation. The assessment currently carried out is based on the tax filing documents for the recent period and the financial information for 2022 and 2023. In certain jurisdictions, the assessment is not yet completed since information required for the assessment is not collected enough. Based on the assessment carried out so far, the Group has identified its potential exposure to Pillar Two income taxes on profits earned in Jordan, Laos and others where the expected Pillar Two effective tax rate is likely to be lower than 15%. Although the potential effect is expected to arise from the constituent entities (mainly operating subsidiaries) in these jurisdictions, the Group expects that the potential effect arising from the Pillar Two income taxes is not significant. The Group continues to proceed the assessment and expects to complete the assessment in the first half of 2024. The Group has applied the mandatory exception to recognizing and disclosing information about deferred tax assets and liabilities arising from Pillar Two income taxes.

 

41.

Assets Held-for-Sale

Assets held-for-sale as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Land (*1,2)

    W 31,766        31,766  

Buildings (*1,2)

      13,881        13,881  

Structures (*1)

      1        1  
  

 

 

     

 

 

  
   W 45,648        45,648  
  

 

 

     

 

 

  

 

(*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. In accordance with the resolution of the Board of Directors on April 1, 2022, a sales contract for the assets scheduled for sale was entered into on April 13, 2022, and the related down payment and interim payment of W52,666 million were recorded as long-term advance received.

(*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 during the year ended December 31, 2022.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

42.

Expenses Classified by Nature

Expenses classified by nature for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024  
     Selling and
administrative expenses		      Cost of sales      Total  

Raw materials used

    W —         5,781,061        5,781,061  

Power purchase

      —         9,202,880        9,202,880  

Salaries

      281,032        1,121,775        1,402,807  

Retirement benefit expense

      25,368        100,723        126,091  

Welfare and benefit expense

      31,546        127,841        159,387  

Insurance expense

      7,345        36,508        43,853  

Depreciation

      57,322        3,453,904        3,511,226  

Amortization of intangible assets

      21,875        18,629        40,504  

Bad debt expense

      10,175        —         10,175  

Commission

      105,200        101,207        206,407  

Advertising expense

      10,564        1,424        11,988  

Training expense

      2,073        2,769        4,842  

Vehicle maintenance expense

      1,973        2,092        4,065  

Publishing expense

      726        656        1,382  

Business promotion expense

      681        640        1,321  

Rent expense

      11,313        30,907        42,220  

Telecommunication expense

      2,567        2,288        4,855  

Transportation expense

      236        15,993        16,229  

Taxes and dues

      9,434        109,067        118,501  

Expendable supplies expense

      1,685        10,405        12,090  

Water, light and heating expense

      4,162        9,577        13,739  

Repairs and maintenance expense

      37,481        696,284        733,765  

Ordinary development expense

      38,140        128,168        166,308  

Travel expense

      4,486        19,535        24,021  

Clothing expense

      348        683        1,031  

Survey and analysis expense

      198        879        1,077  

Membership fee

      655        4,802        5,457  

Others

      23,628        322,490        346,118  
  

 

 

     

 

 

     

 

 

  
   W 690,213        21,303,187        21,993,400  
  

 

 

     

 

 

     

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

42.

Expenses Classified by Nature, Continued

 

Expenses classified by nature for each of the three-month periods ended March 31, 2024 and 2023 are as follows, continued:

 

In millions of won    March 31, 2023  
     Selling and
administrative expenses		      Cost of sales      Total  

Raw materials used

    W —         9,096,273        9,096,273  

Power purchase

      —         12,170,905        12,170,905  

Salaries

      278,274        1,091,604        1,369,878  

Retirement benefit expense

      21,771        93,103        114,874  

Welfare and benefit expense

      35,132        131,025        166,157  

Insurance expense

      8,060        33,579        41,639  

Depreciation

      63,276        3,143,661        3,206,937  

Amortization of intangible assets

      21,010        20,400        41,410  

Bad debt expense (reversal of bad debt expense)

      (821 )       —         (821 ) 

Commission

      102,351        84,642        186,993  

Advertising expense

      15,301        1,463        16,764  

Training expense

      1,823        2,579        4,402  

Vehicle maintenance expense

      2,244        2,204        4,448  

Publishing expense

      857        694        1,551  

Business promotion expense

      786        776        1,562  

Rent expense

      10,682        29,586        40,268  

Telecommunication expense

      2,188        2,272        4,460  

Transportation expense

      362        26,908        27,270  

Taxes and dues

      17,285        98,724        116,009  

Expendable supplies expense

      2,060        9,808        11,868  

Water, light and heating expense

      5,573        15,461        21,034  

Repairs and maintenance expense

      26,523        567,327        593,850  

Ordinary development expense

      40,995        110,891        151,886  

Travel expense

      4,256        20,653        24,909  

Clothing expense

      220        1,597        1,817  

Survey and analysis expense

      252        1,088        1,340  

Membership fee

      547        4,459        5,006  

Others

      30,580        318,312        348,892  
  

 

 

     

 

 

     

 

 

  
   W 691,587        27,079,994        27,771,581  
  

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

43.

Earnings (Losses) Per Share

 

(1)

Basic earnings (losses) per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In won              

Type

    March 31, 2024      March 31, 2023  

Basic earnings (loss) per share

    W 875        (7,705 ) 

 

(2)

Profit (Loss) for the periods and the weighted average number of common shares used in the calculation of basic earnings (losses) per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won except number of shares              

Type

    March 31, 2024      March 31, 2023  

Profit (loss) attributable to controlling interest

    W 561,462        (4,946,503 ) 

Profit (loss) used in the calculation of total basic earnings per share

      561,462        (4,946,503 ) 

Weighted average number of common shares

      641,964,077        641,964,077  

 

(3)

The weighted average number of common shares used in the calculation of basic earnings (losses) per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In number of shares              

Type

    March 31, 2024      March 31, 2023  

The number of common shares issued at beginning of the year

      641,964,077        641,964,077  

Weighted average number of common shares

      641,964,077        641,964,077  

 

(4)

There are no potential dilutive instruments, thus diluted earnings (losses) per share are same as basic earnings (losses) per share for each of the three-month periods ended March 31, 2024 and 2023.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

44.

Risk Management

 

(1)

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024     December 31, 2023  

Total borrowings and debt securities

    W 130,432,884       133,631,830  

Cash and cash equivalents

      2,950,340       4,342,887  
  

 

 

    

 

 

  

Net borrowings and debt securities

      127,482,544       129,288,943  
  

 

 

    

 

 

  

Total equity

      38,114,206       37,264,750  
  

 

 

    

 

 

  

Debt to equity ratio

      334.48 %      346.95 % 

 

(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.

 

  ①

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.

 

  ②

Impairment and allowance account

In accordance with the Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Cash and cash equivalents

    W 2,950,340        4,342,887  

Financial assets at fair value through profit or loss (*1)

      2,644,699        2,590,228  

Derivative assets (trading)

      1,079,533        730,948  

Financial assets at fair value through other comprehensive income (debt securities)

      4,627        4,627  

Financial assets at amortized cost

      38,795        38,843  

Loans

      992,820        988,331  

Long-term/short-term financial instruments

      1,440,551        1,412,315  

Derivative assets (applying hedge accounting)

      373,594        269,446  

Trade and other receivables

      12,808,498        14,179,322  

Financial guarantee contracts (*2)

      4,601,927        4,399,189  

 

(*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 three-month period ended March 31, 2024, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.

 

  (ii)

Market risk

Market risk is the risk that the Group’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, currency risk and other price risk.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024     December 31, 2023  

Type

   

Accounts

    1%p Increase     1%p Decrease     1%p Increase     1%p Decrease  

Future salary increases

    Increase (decrease) in defined benefit obligation    W 418,160       (366,903 )      392,392       (361,359 ) 

Discount rate

    Increase (decrease) in defined benefit obligation      (368,108 )      431,155       (371,103 )      415,361  

Changes in retirement benefit costs assuming a 1%p increase and decrease movements in discount rate on plan asset for each of the three-month periods ended March 31, 2024 and 2023 are W7,874 million and W7,475 million, respectively.

 

  ②

Provisions

Changes in provisions due to movements in underlying assumptions as of March 31, 2024 and December 31, 2023 are as follows:

 

Type

   

Accounts

    March 31, 2024     December 31, 2023  

PCBs

    Inflation rate      2.40 %      2.40 % 
   Discount rate      2.12 %      2.12 % 

Nuclear plants

    Inflation rate      1.91 %      1.91 % 
   Discount rate      2.76 %      2.76 % 

Spent fuel

    Inflation rate      1.91 %      1.91 % 
   Discount rate      2.49 %      2.49 % 

Radioactive waste

    Inflation rate      3.89 %      3.89 % 
   Discount rate      3.65 %      3.65 % 

A sensitivity analysis of provisions assuming a 0.1%p increase and decrease movements in the underlying assumptions as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won         March 31, 2024     December 31, 2023  

Type

   

Accounts

    0.1%p Increase     0.1%p Decrease     0.1%p Increase     0.1%p Decrease  

Discount rate

   

PCBs

    W (109 )      109       (123 )      123  
  

Nuclear plants

      (416,383 )      430,545       (418,570 )      432,847  
  

Spent fuel

      (130,010 )      130,707       (130,065 )      130,761  
  

Radioactive waste

      (13,344 )      13,485       (13,538 )      13,683  

Inflation rate

    PCBs      109       (109 )      123       (123 ) 
  

Nuclear plants

      461,169       (446,554 )      458,047       (443,531 ) 
  

Spent fuel

      133,875       (128,554 )      133,931       (128,607 ) 
  

Radioactive waste

      13,001       (12,886 )      13,291       (13,174 ) 

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 March 31, 2024 and December 31, 2023 are as follows:

 

In thousands of foreign currencies    Assets      Liabilities  

Type

    March 31, 2024      December 31, 2023      March 31, 2024      December 31, 2023  

AED

      48,800        24,441        11,255        18,143  

AUD

      4,334        4,310        299,882        299,795  

BDT

      2,258        2,260        —         —   

BWP

      776        777        —         —   

CAD

      2        —         —         —   

CHF

      —         —         299,918        499,930  

DOP

      924        —         —         —   

EGP

      98,064        1,665        —         1,941  

EUR

      1,842        12,259        41,426        81,744  

GBP

      119        75        —         —   

HKD

      —         —         5,121,499        5,079,189  

IDR

      40,446,782        25,567,281        2,128,276        2,118,580  

INR

      1,898,691        1,663,705        407,589        387,947  

JOD

      836        569        67,610        68,448  

JPY

      799,671        921,120        8,874,524        8,692,604  

KZT

      1,510        1,510        —         —   

MGA

      5,322,740        3,545,076        501,840        495,288  

MMK

      199,518        199,518        —         —   

MYR

      2,805        2,805        —         —   

PHP

      37,262        98,154        20,497        6,750  

PKR

      69,591,634        75,206,354        22,303        55,531  

SAR

      1,014        937        —         —   

SEK

      —         —         449,567        452,309  

SGD

      424        279        17        2,191  

USD

      1,153,519        1,701,494        15,400,773        14,458,985  

UYU

      149,714        120,768        2,443        2,028  

VND

      666,232        848,242        —         —   

ZAR

      110,448        87,780        —         —   

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of March 31, 2024 and December 31, 2023 is as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Type

    10% Increase      10% Decrease      10% Increase      10% Decrease  

Increase (decrease) of profit before income tax

    W (2,069,199 )       2,069,199        (1,828,308 )       1,828,308  

Increase (decrease) of shareholder’s equity (*)

      (2,069,199 )       2,069,199        (1,828,308 )       1,828,308  

 

(*)

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 March 31, 2024 and December 31, 2023.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 March 31, 2024, 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 March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won       

Type

    March 31, 2024      December 31, 2023  

Short-term borrowings

    W 4,418,872        4,435,420  

Long-term borrowings

      8,235,838        7,766,588  

Debt securities

      304,810        305,602  
  

 

 

     

 

 

  
   W 12,959,520        12,507,610  
  

 

 

     

 

 

  

A sensitivity analysis on the Group’s borrowings and debt securities assuming a 1%p increase and decrease in interest rates for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Type

    1%p Increase      1%p Decrease      1%p Increase      1%p Decrease  

Increase (decrease) of profit before income tax

    W (32,399 )       32,399        (125,076 )       125,076  

Increase (decrease) of shareholder’s equity (*)

      (32,399 )       32,399        (125,076 )       125,076  

 

(*)

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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 each of the three-month periods ended March 31, 2024 and 2023 is as follows:

 

In millions of won    March 31, 2024      March 31, 2023  

Type

    1% Increase      1% Decrease      1% Increase      1% Decrease  

Increase (decrease) of profit before income tax

    W 221,650        (221,650 )       202,591        (202,591 ) 

Increase (decrease) of shareholder’s equity (*)

      221,650        (221,650 )       202,591        (202,591 ) 

 

(*)

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 of non-derivative financial liabilities as of March 31, 2024 and December 31, 2023 in detail are as follows:

 

In millions of won    March 31, 2024  

Type

    Less than
1 year		      1~2 Years      2~5 Years      More than
5 years		      Total  

Borrowings and debt securities

    W 45,354,417        29,197,389        40,384,847        32,496,491        147,433,144  

Lease liabilities

      651,662        613,373        1,280,491        1,669,922        4,215,448  

Trade and other payables (*1)

      8,726,849        377,701        832,502        579,591        10,516,643  

Financial guarantee contracts (*2)

      336,617        3,506,604        747,746        10,960        4,601,927  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 55,069,545        33,695,067        43,245,586        34,756,964        166,767,162  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  

Type

    Less than
1 year		      1~2 Years      2~5 Years      More than
5 years		      Total  

Borrowings and debt securities

    W 50,878,929        29,046,036        42,420,850        32,778,830        155,124,645  

Lease liabilities

      641,525        588,850        1,309,996        1,694,729        4,235,100  

Trade and other payables (*1)

      8,477,209        364,443        833,394        589,004        10,264,050  

Financial guarantee contracts (*2)

      121,415        2,546,689        1,645,488        85,597        4,399,189  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 60,119,078        32,546,018        46,209,728        35,148,160        174,022,984  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

Excludes lease liabilities.

(*2)

This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of March 31, 2024 and December 31, 2023 are W47,298 million and W49,992 million, respectively.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

As the Group manages liquidity based on net assets and net liabilities, information about non-derivative financial assets should be included in the disclosure for better understanding of liquidity risk management.

The expected maturities for non-derivative financial assets as of March 31, 2024 and December 31, 2023 in detail are as follows:

 

In millions of won    March 31, 2024  

Type

    Less than
1 year		      1~5 Years      More than
5 years		      Other (*)      Total  

Cash and cash equivalents

    W 2,950,340        —         —         —         2,950,340  

Financial assets at fair value through other comprehensive income

      —         —         —         568,331        568,331  

Financial assets at amortized cost

      28,917        9,878        —         —         38,795  

Loans and receivables

      142,050        413,750        354,498        121,507        1,031,805  

Long-term/short-term financial Instruments

      608,416        26,407        —         805,728        1,440,551  

Financial assets at fair value through profit or loss

      2,092,538        155,001        373,444        145,096        2,766,079  

Trade and other receivables

      10,550,905        1,070,953        1,203,915        681        12,826,454  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 16,373,166        1,675,989        1,931,857        1,641,343        21,622,355  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

In millions of won    December 31, 2023  

Type

    Less than
1 year		      1~5 Years      More than
5 years		      Other (*)      Total  

Cash and cash equivalents

    W 4,342,887        —         —         —         4,342,887  

Financial assets at fair value through other comprehensive income

      —         —         —         502,443        502,443  

Financial assets at amortized cost

      28,905        9,938        —         —         38,843  

Loans and receivables

      139,168        465,666        411,100        8,872        1,024,806  

Long-term/short-term financial Instruments

      578,578        22        23        833,692        1,412,315  

Financial assets at fair value through profit or loss

      2,054,021        1,381        6,523        649,360        2,711,285  

Trade and other receivables

      11,990,515        911,822        1,292,539        1,280        14,196,156  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   W 19,134,074        1,388,829        1,710,185        1,995,647        24,228,735  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

The maturities cannot be presently determined.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

44.

Risk Management, Continued

 

(2)

Financial risk management, continued

 

Derivative liabilities classified by maturity periods from reporting date to maturity dates as per the contracts as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  

Type

    Less than
1 year		     1~2 Years     2~5 Years     More than
5 years		     Total  

Net settlement

           

- Trading

    W —        —        —        —        —   

Gross settlement

           

- Trading and others

      (34,979 )      (48,779 )      (31,800 )      (103,624 )      (219,182 ) 

- Hedging

      (361 )      —        —        (4,920 )      (5,281 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W (35,340 )      (48,779 )      (31,800 )      (108,544 )      (224,463 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
In millions of won    December 31, 2023  

Type

    Less than
1 year		     1~2 Years     2~5 Years     More than
5 years		     Total  

Net settlement

           

- Trading

    W —        —        —        —        —   

Gross settlement

           

- Trading and others

      (22,571 )      (11,566 )      (201,590 )      (130,119 )      (365,846 ) 

- Hedging

      —        (4,680 )      (13,243 )      (5,641 )      (23,564 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   W (22,571 )      (16,246 )      (214,833 )      (135,760 )      (389,410 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 the future contractual cash flows based on current market interest rates applied to similar financial instruments.

 

  (i)

Fair values and book values of financial assets and liabilities as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Type

    Book value      Fair value      Book value      Fair value  

Assets recognized at fair value

            

Financial assets at fair value through other comprehensive income

    W 568,331        568,331        502,443        502,443  

Derivative assets (trading)

      1,079,533        1,079,533        730,948        730,948  

Derivative assets (applying hedge accounting)

      373,594        373,594        269,446        269,446  

Financial assets at fair value through profit or loss

      2,766,079        2,766,079        2,711,285        2,711,285  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 4,787,537        4,787,537        4,214,122        4,214,122  
  

 

 

     

 

 

     

 

 

     

 

 

  

Assets carried at amortized cost

            

Financial assets at amortized cost

    W 38,795        38,795        38,843        38,843  

Loans and receivables

      992,820        992,820        988,331        988,331  

Trade and other receivables

      12,808,498        12,808,498        14,179,322        14,179,322  

Long-term financial instruments

      832,135        832,135        833,737        833,737  

Short-term financial instruments

      608,417        608,417        578,578        578,578  

Cash and cash equivalents

      2,950,340        2,950,340        4,342,887        4,342,887  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 18,231,005        18,231,005        20,961,698        20,961,698  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities recognized at fair value

            

Derivative liabilities (trading)

    W 299,699        299,699        428,670        428,670  

Derivative liabilities (applying hedge accounting)

      4,921        4,921        23,564        23,564  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 304,620        304,620        452,234        452,234  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities carried at amortized cost

            

Secured borrowings

    W 1,481,257        1,481,257        773,646        773,646  

Unsecured bond

      114,262,987        116,353,000        113,792,178        111,218,771  

Lease liabilities

      3,776,009        3,776,009        3,807,880        3,807,880  

Unsecured borrowings

      14,673,640        14,674,962        19,062,162        19,061,348  

Trade and other payables (*)

      10,516,644        10,516,644        10,264,050        10,264,050  

Overdraft

      15,000        15,000        3,844        3,844  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 144,725,537        146,816,872        147,703,760        145,129,539  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Excludes lease liabilities.

 

130

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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 rates used for calculating fair value as of March 31, 2024 and December 31, 2023 are as follows:

 

Type

    March 31, 2024      December 31, 2023  

Derivatives

      0.93%~14.57%        0.93%~10.36%  

Borrowings and debt securities

      0.96%~5.84%        0.96%~5.84%  

Leases

      0.00%~16.99%        0.00%~17.03%  

 

  (iii)

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.

 

Level 1:    Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2:    Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3:    Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  

Type

    Level 1      Level 2      Level 3      Total  

Financial assets at fair value

            

Financial assets at fair value through other comprehensive income

    W 348,790        —         219,541        568,331  

Derivative assets

      —         1,453,127        —         1,453,127  

Financial assets at fair value through profit or loss

      —         2,759,210        6,869        2,766,079  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 348,790        4,212,337        226,410        4,787,537  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial liabilities at fair value

            

Derivative liabilities

    W —         304,620        —         304,620  

 

In millions of won    December 31, 2023  

Type

    Level 1      Level 2      Level 3      Total  

Financial assets at fair value

            

Financial assets at fair value through other comprehensive income

    W 285,054        —         217,389        502,443  

Derivative assets

      —         1,000,394        —         1,000,394  

Financial assets at fair value through profit or loss

      —         2,704,550        6,735        2,711,285  
  

 

 

     

 

 

     

 

 

     

 

 

  
   W 285,054        3,704,944        224,124        4,214,122  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial liabilities at fair value

            

Derivative liabilities

    W —         452,234        —         452,234  

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.

 

131

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

44.

Risk Management, Continued

 

(3)

Fair value risk, continued

 

Changes in non-derivative financial assets and liabilities which are classified as level 3 for the three-month period ended March 31, 2024 and for the year ended December 31, 2023 are as follows:

 

In millions of won    March 31, 2024  
     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

    W 6,735        20        —         114       —         —         6,869  

Financial assets at fair value through other comprehensive income

                    

Unlisted securities

      212,762        —         —         (83 )      —         2,235        214,914  

Debt securities

      4,627        —         —         —        —         —         4,627  

 

In millions of won    December 31, 2023  
     Beginning
balance		      Acquisitions      Reclassified
category		      Valuation      Disposal     Foreign
currency
translation
and others		      Ending
balance		  

Financial assets at fair value

                    

Financial assets at fair value through profit or loss Cooperative

    W 6,329        —         270        136        —        —         6,735  

Financial assets at fair value through other comprehensive income

                    

Unlisted securities

      202,243        9,550        —         5,445        (5,332 )      856        212,762  

Debt securities

      529        4,080        —         18        —        —         4,627  

 

132

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

45.

Service Concession Arrangements

 

(1)

Hydroelectric Power Generation at Semangka, Indonesia (BOT)

 

  (i)

Significant terms and concession period of the arrangement

Regarding 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 shall provide electricity generated for about 30 years (2018 – 2048) after subsequent to the completion of plant construction and shall receive 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.

 

  (ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2018 to 2048. At the end of the concession period, PT PLN has an option to take over the ownership of the power plant from the Group.

 

  (iii)

Classification method

This project allows PT PLN to acquire ownership of the plant after the end of the 30 years contract period.

 

  (iv)

The Group’s expected future collections of service concession arrangements as of March 31, 2024 are as follows:

 

In millions of won       

Type

    Amounts  

Less than 1 year

    W 33,691  

1 ~ 2 years

      33,732  

2 ~ 3 years

      33,773  

Over 3 years

      538,149  
  

 

 

  
   W 639,345  
  

 

 

  

 

133

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

45.

Service Concession Arrangements, Continued

 

(2)

CPPAg Power Generation

 

  (i)

Significant terms and concession period of the arrangement

The Group has entered into a contract with CPPAg (Central Power Purchasing Agency Guarantee Limited) whereby the Group shall provide electricity generated for approximately 30 years (2020 – 2050) subsequent to the completion of plant construction and shall receive charge tariff rates designed to recover capital cost, variable O&M cost, fixed O&M cost, water usage cost, insurance cost and others during the concession period.

 

  (ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2020 to 2050. The Government of Pakistan has an option to take over the ownership of the power plant from the Group after the concession period has elapsed.

 

  (iii)

Classification method

This project allows the Government of Pakistan to acquire ownership of the plant after the end of the contract period.

 

  (iv)

The Group’s expected future collections of service concession arrangements as of March 31, 2024 are as follows:

 

In millions of won       

Type

    Amounts  

Less than 1 year

    W 81,078  

1 ~ 2 years

      81,078  

2 ~ 3 years

      81,078  

Over 3 years

      947,815  
  

 

 

  
   W 1,191,049  
  

 

 

  

 

134

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties

 

(1)

The Group’s related parties as of March 31, 2024 are as follows:

 

Type

   

Related party

Parent    Republic of Korea government

Subsidiaries

(167 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 ES 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 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, Columboola Solar Farm Nominees Pty., Ltd., Columboola Solar Farm Op Trust, Columboola Solar Farm Fin Co Pty., Ltd., Magna Energy New Industrial Fund, EWP ESS Holdings, LLC, Fairhaven ESS LLC, KOSPO Rutile, LLC

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(1)

The Group’s related parties as of March 31, 2024 are as follows, continued:

 

Type

   

Related party

Associates

(97 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., 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, 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., 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., STN 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., KPE 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., PlatformN. Co., Ltd., PT. Cirebon Energi Prasarana, Future Convergence Technology Laboratory. Co., Ltd., ECO Motion Co., Ltd., REC’s Innovation Co., Ltd., ACE, Co., Ltd., Environment and Energy Co., Ltd., Green Radiation Co., Ltd., Santiago Solar Power SpA, Yanggu Floating Photovoltaic Power Plant Inc., Changwon SG energy Co., Ltd., Donpyung Technology. Co., Ltd., Power Embedded, HORANG ENERGY Inc., Hoenggye Renewable Energy Co., Ltd., Haman Green Energy Co., Ltd., Songsan Green Energy Co., Ltd.

Joint ventures

(113 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., Boim Combined Heat and Power Generation 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., Changwon Nu-ri Energy Co., Ltd., 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., Kumyang Eco Park Co., Ltd., Jeongeup Green Power Co., Ltd., Hadong E-factory Co., Ltd., Namyangju Combined Heat and Power Co., Ltd., Wadi Noor Solar Power Company SAOC, Fairhaven Energy Storage LLC, Rutile BESS Holdings, LLC, Trumbull Development Partners, LLC

Others

(2 others)

    Korea Development Bank, KEPCO Lebanon SARL

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (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)

The related party transactions for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

<Sales and Others>

 

In millions of won         Sales and others  

Company name

   

Transaction type

    March 31, 2024      March 31, 2023  

<Associates>

         

Korea Gas Corporation

    Electricity sales    W 42,592        39,767  

Goseong Green Power Co., Ltd.

    Electricity Sales      176,040        187,849  

Dongducheon Dream Power Co., Ltd.

    Electricity sales      2,960        2,647  

Shin Pyeongtaek Power Co., Ltd.

    Electricity sales      28,993        33,609  

S-Power Co., Ltd.

    Service      613        1,100  

Gangneung Eco Power Co., Ltd.

    Fuel sales      176,824        248,358  

GS Donghae Electric Power Co., Ltd.

    Electricity sales      2,133        10,914  

Korea Electric Power Industrial Development Co., Ltd.

    Service      3,551        3,990  

Daeryun Power Co., Ltd.

    Electricity sales      1,030        872  

Korea Power Exchange

    Service      3,054        2,930  

Go deok Clean Energy Co., Ltd.

    Electricity sales      6,699        1  

KPE Green Energy Co., Ltd.

    Electricity Sales      4        4  

Chuncheon Green Energy Co., Ltd.

    Electricity sales      9        1  

Bitgoel Eco Energy Co., Ltd.

    Electricity sales      2,179        428  

Taebaek Gadeoksan Wind Power Co., Ltd.

    Electricity sales      1,949        11  

SPC Power Corporation

    Dividends income      8,100        —   

Gangwon Wind Power Co., Ltd.

    Electricity sales      1,486        2,309  

Busan Green Energy Co., Ltd.

    Electricity sales      2,137        1,424  

Noeul Green Energy Co., Ltd.

    Electricity sales      2,618        3,290  

Others (Muan Solar Park Co., Ltd. and 45 others)

    Electricity sales      11,985        16,848  

<Joint ventures>

         

Chun-cheon Energy Co., Ltd.

    Electricity sales      832        628  

Daegu Green Power Co., Ltd.

    Electricity sales      388        352  

Daesan Green Energy Co., Ltd.

    Electricity sales      40        200  

Nawah Energy Company

    Others      29,403        19,014  

KEPCO SPC Power Corporation

    Others      21,723        346  

Yeonggwang Wind Power Co., Ltd.

    Electricity sales      284        278  

Jamaica Public Service Company Limited

    Others      —         797  

Cheongna Energy Co., Ltd.

    Others      15,037        10,662  

PT. Tanjung Power Indonesia

    Others      135        7  

Seokmun Energy Co., Ltd.

    Service      586        657  

South Jamaica Power Company Limited

    Others      815        30  

Solaseado Solar Power Co., Ltd.

    Electricity sales      453        459  

Eumseong Eco Park Co., Ltd.

    Electricity sales      5        2  

Kelar S.A.

    Others      5,905        6,937  

Cheongju Eco Park Co., Ltd.

    Electricity sales      91        5  

Others (Amman Asia Electric Power Company and 54 others)

    Electricity sales      20,118        80,764  

<Others>

         

Korea Development Bank

    Electricity sales      1,320        1,180  
   Interest income      6,225        242  
     

 

 

     

 

 

  
      W 578,316        678,912  
     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(3)

The related party transactions for each of the three-month periods ended March 31, 2024 and 2023 are as follows, continued:

 

<Purchase and Others>

 

In millions of won         Purchase and others  

Company name

   

Transaction type

    March 31, 2024      March 31, 2023  

<Associates>

         

Korea Gas Corporation

    Fuel Purchase    W 1,852,694        3,701,590  

Goseong Green Power Co., Ltd.

    Electricity sales      300,442        391,720  

Dongducheon Dream Power Co., Ltd.

    Electricity sales      406,861        705,977  

Shin Pyeongtaek Power Co., Ltd.

    Electricity sales      261,380        393,546  

S-Power Co., Ltd.

    Service      216,476        348,587  

Gangneung Eco Power Co., Ltd.

    Others      672        —   

GS Donghae Electric Power Co., Ltd.

    Electricity sales      165,761        281,804  

Korea Electric Power Industrial Development Co., Ltd.

    Service      73,918        67,859  

Daeryun Power Co., Ltd.

    Electricity sales      89,809        139,468  

Korea Power Exchange

    Service      22,927        27,295  

Go deok Clean Energy Co., Ltd.

    Electricity sales      13,899        —   

KPE Green Energy Co., Ltd.

    Others      11,233        12,882  

Chuncheon Green Energy Co., Ltd.

    Electricity sales      10,723        —   

Bitgoel Eco Energy Co., Ltd.

    Electricity sales      9,073        6,136  

Taebaek Gadeoksan Wind Power Co., Ltd.

    Electricity sales      7,110        9,035  

Gangwon Wind Power Co., Ltd.

    Electricity sales      6,473        11,068  

Busan Green Energy Co., Ltd.

    Electricity sales      5,623        5,657  

Noeul Green Energy Co., Ltd.

    Electricity sales      4,530        3,429  

Others (Muan Solar Park Co., Ltd. and 45 others)

    Electricity sales      58,766        73,763  

<Joint ventures>

         

Chun-cheon Energy Co., Ltd.

    Electricity sales      110,336        198,368  

Daegu Green Power Co., Ltd.

    Electricity sales      106,402        159,849  

Daesan Green Energy Co., Ltd.

    Electricity sales      43,457        39,907  

Yeonggwang Wind Power Co., Ltd.

    Electricity sales      20,280        7,964  

Jamaica Public Service Company Limited

    Others      57        37  

Cheongna Energy Co., Ltd.

    Service      62        59  

Seokmun Energy Co., Ltd.

    Service      11,450        14,944  

Solaseado Solar Power Co., Ltd.

    Electricity sales      6,787        4,940  

Seungmun Green Energy

    Electricity sales      7,209        —   

Eumseong Eco Park Co., Ltd.

    Electricity sales      6,889        —   

Cheongju Eco Park Co., Ltd.

    Electricity sales      5,241        22,410  

Others (Amman Asia Electric Power Company and 54 others)

    Electricity sales      35,513        50,377  

<Others>

         

Korea Development Bank

    Interest expense      1,027        1,454  
     

 

 

     

 

 

  
      W 3,873,080        6,680,125  
     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(4)

Receivables and payables arising from the related party transactions as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won         Receivables      Payables  

Company name

   

Type

    March 31, 2024      December 31, 2023      March 31, 2024      December 31, 2023  

<Associates>

               

Korea Gas Corporation

    Trade receivables    W 6,320        14,671        —         —   
   Non-trade receivables and others      23        12,513        —         —   
   Trade payables      —         —         630,431        480,974  
   Non-trade payables and others      —         —         1,396        1,378  

Goseong Green Power Co., Ltd.

    Trade receivables      33,925        55,719        —         —   
   Non-trade receivables and others      910        15        —         —   
   Trade payables      —         —         68,570        120,270  
   Non-trade payables and others      —         —         47,242        48,621  

Dongducheon Dream Power Co., Ltd.

    Trade receivables      359        2,573        —         —   
   Non-trade receivables and others      406        478        —         —   
   Trade payables      —         —         148,480        117,975  

Shin Pyeongtaek Power Co., Ltd.

    Trade receivables      1,310        1,814        —         —   
   Non-trade receivables and others      25,482        4,933        —         —   
   Trade payables      —         —         88,348        86,801  
   Non-trade payables and others      —         —         328        385  

Busan Green Energy Co., Ltd.

    Trade receivables      1        1        —         —   
   Non-trade receivables and others      33,484        32,720        —         —   
   Non-trade payables and others      —         —         3,943        3,642  

Daeryun Power Co., Ltd.

    Trade receivables      —         326        —         —   
   Trade payables      —         —         25,787        32,140  

GS Donghae Electric Power Co., Ltd.

    Trade receivables      22        159        —         —   
   Non-trade receivables and others      113        169        —         —   
   Trade payables      —         —         59,830        72,951  
   Non-trade payables and others      —         —         67        125  

S-Power Co., Ltd.

    Trade receivables      116        213        —         —   
   Non-trade receivables and others      54        53        —         —   
   Trade payables      —         —         92,663        79,459  

Taebaek Gadeoksan Wind Power Co., Ltd.

    Non-trade receivables and others      1,793        1,539        —         —   
   Trade payables      —         —         3,519        12,739  
   Non-trade payables and others      —         —         2        7  

Others (Korea Electric Power Industrial Development Co., Ltd. and 37 others)

    Trade receivables      23,844        64,863        —         —   
   Non-trade receivables and others      48,911        106,635        —         —   
   Trade payables      —         —         24,532        39,096  
   Non-trade payables and others      —         —         16,600        26,863  

<Joint ventures>

               

Nawah Energy Company

    Trade receivables      58,297        60,437        —         —   
   Non-trade receivables and others      804        1,995        —         —   

Chun-cheon Energy Co., Ltd.

    Trade receivables      —         239        —         —   
   Non-trade receivables and others      213        165        —         —   
   Trade payables      —         —         22,597        79,117  
   Non-trade payables and others      —         —         —         2  

Daegu Green Power Co., Ltd.

    Trade receivables      95        122        —         —   
   Non-trade receivables and others      55        55        —         —   
   Trade payables      —         —         34,851        32,222  

Boim Combined Heat and Power Generation Co., Ltd.

    Trade receivables      85        84        —         —   
   Non-trade receivables and others      10,218        10,779        —         —   
   Trade payables      —         —         —         721  
   Non-trade payables and others      —         —         14,469        14,193  

Amman Asia Electric Power Company

    Trade receivables      2,291        2,469        —         —   
   Non-trade payables and others      —         —         22,055        22,395  

Kelar S.A.

    Trade receivables      3,242        3,055        —         —   
   Non-trade receivables and others      29,036        26,576        —         —   

Others (Daesan Green Energy Co., Ltd. and 54 others)

    Trade receivables      94,283        115,674        —         —   
   Non-trade receivables and others      34,490        34,897        —         —   
   Trade payables      —         —         32,021        30,321  
   Non-trade payables and others      —         —         1,139        4,916  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(4)

Receivables and payables arising from the related party transactions as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won         Receivables      Payables  

Company name

   

Type

    March 31, 2024      December 31, 2023      March 31, 2024      December 31, 2023  

<Others>

               

Korea Development Bank

    Non-trade receivables and others    W 33,277        33,140        —         —   
   Non-trade payables and others      —         —         139        147  
   Derivatives and others      106,459        45,898        44,952        72,050  

KEPCO Lebanon SARL

    Trade receivables      75        75        —         —   
     

 

 

     

 

 

     

 

 

     

 

 

  
      W 549,993        635,054        1,383,961        1,379,510  
     

 

 

     

 

 

     

 

 

     

 

 

  

 

140

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(5)

Loans and others arising from the related party transactions as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won                           

Type

   

Company name

    Beginning
balance		     Loans      Collection     Others     Ending
balance		  

Associates

   

KNOC Nigerian East Oil Co., Ltd.,

KNOC Nigerian West Oil Co., Ltd.

    W 32,153       —         —        —        32,153  
   (Allowance for doubtful accounts)      (25,543 )      —         —        (1,063 )      (26,606 ) 

Associates

   

Nepal Water & Energy Development

Company Private Limited

      18,052       —         —        803       18,855  

Associates

    Xe-Pian Xe-Namnoy Power Co., Ltd.      23,337       —         —        1,039       24,376  

Associates

    PT. Cirebon Energi Prasarana      35,542       —         —        2,103       37,645  

Associates

    Bigeum Resident Photovoltaic Power Co., Ltd.      9,525       —         —        (2 )      9,523  

Associates

    Daejung Offshore Wind Power Co., Ltd.      1,000       —         —        —        1,000  

Associates

    Bitgoel Eco Energy Co., Ltd.      30,885       —         (1,065 )      —        29,820  

Associates

    Saemangeum Sebit Power Plant Co., Ltd.      28,970       —         (349 )      —        28,621  

Joint ventures

    Solaseado Solar Power Co., Ltd.      35,000       —         —        —        35,000  

Joint ventures

    Recursos Solares PV de Mexico II, S.A. de C.V.      10,589       803        —        507       11,899  

Joint ventures

    Horus Solar, S.A. de C.V.      11,199       788        —        534       12,521  

Joint ventures

    Sunmex Renovables, S.A. de C.V.      17,210       1,026        —        812       19,048  

Joint ventures

    Kelar S.A.      40,985       —         —        2,090       43,075  

Joint ventures

    DE Energia SpA      7,386       —         —        329       7,715  

Joint ventures

    Daehan Wind Power PSC      14,872       —         —        663       15,535  

Joint ventures

    Bitsolar Energy Co., Ltd.      3,165       —         —        —        3,165  

Joint ventures

    Daesan Green Energy Co., Ltd.      2,411       —         —        —        2,411  

Joint ventures

    Yangyang Wind Power Co., Ltd.      3,257       —         —        —        3,257  

Joint ventures

    Nghi Son 2 Power LLC      189,991       —         (35,174 )      8,147       162,964  

Joint ventures

    Pulau Indah Power Plant Sdn. Bhd.      9,963       —         —        (9,963 )      —   

Joint ventures

    Guadalupe Solar SpA      3,161       —         (109 )      138       3,190  

Joint ventures

    Foresight Iberian Solar Group Holding, S.L.      64,318       1,148        —        1,195       66,661  

Joint ventures

    Capman Lynx SCA, SICAR      35,210       —         —        650       35,860  
   (Allowance for doubtful accounts)      (35,210 )      —         —        (650 )      (35,860 ) 

Joint ventures

    S-Power Chile SpA      258       —         —        11       269  

Others

    KEPCO Lebanon SARL      3,834       —         —        —        3,834  
   (Allowance for doubtful accounts)      (3,834 )      —         —        —        (3,834 ) 
     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
      W 567,686       3,765        (36,697 )      7,343       542,097  
     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(6)

Borrowings arising from the related party transactions as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won  

Related parties

    Type    Beginning
balance		      Borrowings      Repayment     Others     Ending
balance		  

Korea Development Bank

    Facility    W 85,103        25        (1,471 )      2,552       86,209  
   Others      1,758        —         (15 )      —        1,743  
   Operating funds      120,000        54,239        (84,239 )      —        90,000  
   Syndicated Loan      10,948        —         (855 )      (272 )      9,821  
   EBL and others      108,212        2,990        —        3,260       114,462  
     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  
      W 326,021        57,254        (86,580 )      5,540       302,235  
     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

141

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 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 and others

      USD 40,738     

SMBC Singapore 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 4,103,269     

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 4,151     

Hana Bank

Korea Electric Power Corporation

   

Shuweihat Asia Power Investment B.V.

   

Performance guarantees

      USD 50,000     

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

           USD 393     

CFE Transmission

Korea Electric Power Corporation

   

Sunmex Renovables, S.A. de C.V.

   

Other performance guarantees

      USD 9,078     

CENACE

           MXN 3,666     

SEMARNAT

Korea Electric Power Corporation

   

International Offshore Power Transmission Holding Company Limited

   

Performance guarantees

      USD 52,500     

Mizuho Bank

     

Other performance guarantees

      USD 7,000     

Credit Agricole

Korea Electric Power Corporation

   

Pulau Indah Power Plant Sdn. Bhd.

   

Collateralized money invested (*10)

      KRW 13,210     

Malaysian Trustee Berhad

Korea Electric Power Corporation

   

KEPCO for Power Company

   

Debt guarantees

      USD 60,000     

Riyad bank

     

Other performance guarantees

      USD 70,000     

SMBC Seoul

Korea Western Power Co., Ltd.

   

Cheongna Energy Co., Ltd.

   

Collateralized money invested

      KRW 37,781     

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 126,621     

Krung Thai Bank

     

Impounding bonus guarantees (*11)

      USD 5,000     

SK Eco Plant Co., Ltd.

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 2,322     

Korea Development Bank

Korea Western Power Co., Ltd.

   

Dongducheon Dream Power Co., Ltd.

   

Collateralized money invested (*5)

      KRW 53,033     

Kookmin Bank and others

     

Debt guarantees

      KRW 20,300     

Hanyang Securities

Korea Western Power Co., Ltd.

   

PT. Mutiara Jawa

   

Collateralized money invested

      KRW 3,988     

Woori Bank

Korea Western Power Co., Ltd.

   

Haeng Bok Do Si Photovoltaic Power Co., Ltd.

   

Collateralized money invested

      KRW 291     

Nonghyup Bank

Korea Western Power Co., Ltd.

   

Shin Pyeongtaek Power Co., Ltd.

   

Collateralized money invested

      KRW 137,190     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Western Power Co., Ltd.

   

Haemodum Solar Co., Ltd.

   

Collateralized money invested

      KRW 3,061     

Nonghyup Bank

Korea Western Power Co., Ltd.

   

Muan Solar Park Co., Ltd.

   

Collateralized money invested

      KRW 5,361     

IBK and others

Korea Western Power Co., Ltd.

   

Anjwa Smart Farm & Solar City Co., Ltd.

   

Collateralized money invested

      KRW 7,314     

Hana Bank and others

Korea Western Power Co., Ltd.

   

Seoroseoro Sunny Power Plant Co., Ltd.

   

Collateralized money invested

      KRW 938     

Hana Bank and others

           

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 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 538     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Western Power Co., Ltd.

   

Hapcheon Floating Photovoltaic Power Plant Inc.

   

Collateralized money invested

      KRW 10,208     

Nonghyup Bank and others

Korea Western Power Co., Ltd.

   

Yeongwol Eco Wind Co., Ltd.

   

Collateralized money invested

      KRW 1,774     

Hana Bank and others

Korea Western Power Co., Ltd.

   

Gurae Resident Power Co., Ltd.

   

Collateralized money invested

      KRW 372     

Hana Bank and others

Korea Western Power Co., Ltd

   

Gunsan Land Solar Co., Ltd.

   

Collateralized money invested

      KRW 22,673     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Western Power Co., Ltd

   

Seobusambo highway photovoltaics Co., Ltd.

   

Collateralized money invested

      KRW 3,344     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Western Power Co., Ltd

   

Eumseong Eco Park Co., Ltd.

   

Collateralized money invested

      KRW 9,239     

Kyobo Life Insurance Co., Ltd. and others

Korea Western Power Co., Ltd

   

PungBack Wind Farm Corporation

   

Collateralized money invested

      KRW 8,856     

Hanwha Life Insurance Co., Ltd. and others

Korea Western Power Co., Ltd

   

Wadi Noor Solar Power Company SAOC

   

Loan payment guarantee

      USD 54,855     

DBS Bank

Korea East-West Power Co., Ltd.

   

Busan Shinho Solar Power Co., Ltd.

   

Collateralized money invested

      KRW 6,208     

Korea Development Bank and others

Korea East-West Power Co., Ltd.

   

Seokmun Energy Co., Ltd.

   

Collateralized money invested

      KRW 16,321     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea East-West Power Co., Ltd.

   

Chun-cheon Energy Co., Ltd.

   

Collateralized money invested

      KRW 35,859     

Kookmin Bank and others

     

Guarantees for supplemental funding (*1)

      KRW 90,800     

Korea East-West Power Co., Ltd.

   

Honam Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 4,519     

Shinhan Bank and others

Korea East-West Power Co., Ltd.

   

GS Donghae Electric Power Co., Ltd.

   

Collateralized money invested

     
 KRW
264,450		  
 		   

Korea Development Bank and others

Korea East-West Power Co., Ltd.

   

Yeonggwangbaeksu Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 3,492     

Kookmin Bank and others

Korea East-West Power Co., Ltd.

   

Yeonggwang Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 23,062     

KDB Capital Corporation and others

Korea East-West Power Co., Ltd.

   

Daesan Green Energy Co., Ltd.

   

Collateralized money invested

      KRW 23,894     

IBK

     

Guarantees for supplemental funding (*1)

      —      

Korea East-West Power Co., Ltd.

   

Taebaek Gadeoksan Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 17,467     

Hana Bank and others

Korea East-West Power Co., Ltd.

   

PT. Tanjung Power Indonesia

   

Other guarantees

      USD 3,150     

PT. Adaro Indonesia

     

Guarantees for supplemental funding (*1)

      —      

Sumitomo mitsui banking and others

     

Collateralized money invested

      KRW 96,455     

MUFG and others

Korea East-West Power Co., Ltd.

   

South Jamaica Power Company Limited

   

Performance guarantees (*14)

      USD 14,400     

Hana Bank

     

Collateralized money invested

      KRW 44,993     

JCSD Trustee Services Limited and others

Korea East-West Power Co., Ltd.

   

DE Energia SpA

   

Collateralized money invested

      KRW 10,135     

Mirae Asset Securities Co., Ltd. and others

     

Collateralized loans

      USD 5,728     
     

Payment guarantees (*7)

      USD 959     

Hana Bank

Korea East-West Power Co., Ltd.

   

Bitsolar Energy Co., Ltd.

   

Collateralized money invested

      KRW 352     

Mirae Asset Life Insurance Co., Ltd. and others

Korea East-West Power Co., Ltd.

   

Cheongju Eco Park Co., Ltd.

   

Collateralized money invested

      KRW 10,182     

Kyobo Life Insurance Co., Ltd. and others

Korea East-West Power Co., Ltd.

   

Busan Industrial Solar Power Co., Ltd.

   

Collateralized money invested

      KRW 1,025     

Shinhan Bank and others

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 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 10,886     

Hana Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea East-West Power Co., Ltd.

   

KPE Green Energy Co., Ltd.

   

Collateralized money invested

      KRW 7,875     

Hana Bank and others

Korea East-West Power Co., Ltd.

   

Goheung New Energy Co., Ltd.

   

Collateralized money invested

      KRW 4,423     

Woori Bank and others

Korea East-West Power Co., Ltd.

  

Seungmun Green Energy

   

Collateralized money invested

      KRW 10,574     

Hana Bank and others

Korea East-West Power Co., Ltd.

  

Yanggu Floating Photovoltaic Power Plant Inc.

   

Collateralized money invested

      KRW 757     

Korea Development Bank

Korea East-West Power Co., Ltd.

  

Hoenggye Renewable Energy Co., Ltd.

   

Collateralized money invested

Guarantees for supplemental funding (*1)

     

 KRW 2,375

— 

  

 

   

IBK

Korea East-West Power Co., Ltd.

  

Kumyang Eco Park Co., Ltd.

   

Collateralized money invested

Guarantees for supplemental funding (*1)

     

 KRW 1,430

— 

  

 

   

Woori Bank and others

Korea Southern Power Co., Ltd.

   

KNH Solar Co., Ltd.

   

Collateralized money invested

      KRW 3,138     

Shinhan Bank and others

     

Performance guarantees and guarantees for supplemental funding (*1)

      —      

Korea Southern Power Co., Ltd.

   

Daeryun Power Co., Ltd.

   

Collateralized money invested

      KRW 28,089     

Korea Development Bank and others

Korea Southern Power Co., Ltd.

   

Daegu Green Power Co., Ltd.

   

Collateralized money invested

      KRW 28,281     

Shinhan Bank and others

     

Performance guarantees

      —      

Korea Southern Power Co., Ltd.

   

Kelar S.A.

   

Performance guarantees

Payment guarantees (*12)

     

 USD 33,930

USD 11,707

  

 

   

Hana Bank, MUFG

Hana Bank

Korea Southern Power Co., Ltd.

   

Daehan Wind Power PSC

   

Performance guarantees

      USD 1,800     

Shinhan Bank

     

Payment guarantees (*6)

      USD 2,000     

Hana Bank

     

Collateralized money invested

      KRW 18,321     

Standard Chartered

Korea Southern Power Co., Ltd.

   

Pyeongchang Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 12,012     

Woori Bank, Shinhan Bank and others

     

Performance guarantees

      —      

Korea Southern Power Co., Ltd.

   

Taebaek Guinemi Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 13,780     

IBK

Korea Southern Power Co., Ltd.

   

Samcheok Eco Materials Co., Ltd.

   

Payment guarantees (*2)

Performance guarantees (*15)

     

 — 

— 

  

 

   

SEM Investment Co., Ltd.

Korea Southern Power Co., Ltd.

   

Solaseado Solar Power Co., Ltd.

   

Collateralized money invested

      KRW 13,521     

Kookmin Bank and others

Korea Southern Power Co., Ltd.

   

Naepo Green Energy Co., Ltd.

   

Collateralized money invested

      KRW 21,073     

IBK and others

     

Guarantees for supplemental funding (*1)

      KRW 30,000     

Korea Southern Power Co., Ltd.

   

Omisan Wind Power Co., Ltd.

   

Collateralized money invested

Performance guarantees and guarantees for supplemental funding (*1)

     

 KRW 10,198

— 

  

 

   

Shinhan Bank and others

Korea Southern Power Co., Ltd.

   

Geumsungsan Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 6,665     

Kookmin Bank and others

Korea Southern Power Co., Ltd.

   

HORANG ENERGY Inc.

   

Collateralized money invested

      KRW 4,096     

Woori Bank and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Southern Power Co., Ltd.

   

Haman Green Energy Co., Ltd.

   

Collateralized money invested

Guarantees for supplemental funding (*1)

     

 KRW 2,915

— 

  

 

   

Hana Bank and others

Korea Southern Power Co., Ltd.

   

Jeongeup Green Power Co., Ltd.

   

Collateralized money invested

Guarantees for supplemental funding (*1)

     

 KRW 9,530

— 

  

 

   

Mirae Asset Securities Co., Ltd.

KOSPO Power Services Ltda.

   

Kelar S.A.

   

Performance guarantees

      USD 1,316     

Scotia bank

KOSPO Chile SpA

   

Kelar S.A.

   

Collateralized money invested

      KRW 135,284     

Export-Import Bank of Korea and others

KOSPO Chile SpA

   

Chester Solar I SpA

   

Collateralized money invested

      KRW 992     

IBK

KOSPO Chile SpA

   

Chester Solar IV SpA

   

Collateralized money invested

      KRW 158     

IBK

KOSPO Chile SpA

   

Chester Solar V SpA

   

Collateralized money invested

      KRW 98     

IBK

KOSPO Chile SpA

   

Diego de Almagro Solar SpA

   

Collateralized money invested

      KRW 441     

IBK

KOSPO Chile SpA

   

Laurel SpA

   

Collateralized money invested

      KRW 398     

IBK

Korea Midland Power Co., Ltd.

   

YeongGwang Yaksu Wind Electric Co., Ltd.

   

Collateralized money invested

      KRW 158     

IBK and others

Korea Midland Power Co., Ltd.

   

Hyundai Green Power Co., Ltd.

   

Collateralized money invested

      KRW 115,170     

Korea Development Bank and others

Korea Midland Power Co., Ltd.

   

PT. Cirebon Electric Power

   

Debt guarantees

      USD 3,355     

Mizuho Bank

Korea Midland Power Co., Ltd.

   

PT Wampu Electric Power

   

Debt guarantees

      USD 5,473     

PT. Bank KB Bukopin

Korea Midland Power Co., Ltd.

   

Green Energy Electricity Generation Co., Ltd.

   

Collateralized money invested

      —      

IBK

     

Guarantees for supplemental funding (*1)

      —      

IBK and others

Korea Midland Power Co., Ltd.

   

Yaksu ESS Co., Ltd.

   

Collateralized money invested

      KRW 323     

IBK

Korea Midland Power Co., Ltd.

   

Gwangbaek Solar Power Investment Co., Ltd.

   

Collateralized money invested

      KRW 5,149     

Kyobo Life Insurance Co., Ltd. and others

Korea Midland Power Co., Ltd.

   

Muan Sunshine Solar Power Plant Co., Ltd.

   

Collateralized money invested

      KRW 2,106     

IBK

Korea Midland Power Co., Ltd.

   

Goesan Solar park Co., Ltd.

   

Collateralized money invested

      KRW 2,815     

IBK

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 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 4,901     

IBK and others

     

Guarantees for supplemental funding (*1)

      —      

Korea Midland Power Co., Ltd.

   

Energyco Co., Ltd.

   

Collateralized money invested

      KRW 2,033     

Nonghyup Bank

Korea Midland Power Co., Ltd.

   

Jeju Gimnyeong Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 480     

Nonghyup Bank

Korea Midland Power Co., Ltd.

   

Dongbu Highway Solar Co., Ltd.

   

Collateralized money invested

      KRW 394     

Shinhan Bank

Korea Midland Power Co., Ltd.

   

Seobu Highway Solar Co., Ltd.

   

Collateralized money invested

      KRW 462     

Shinhan Bank

Korea Midland Power Co., Ltd.

   

Yeongyang Wind Power Corporation II

   

Collateralized money invested

      KRW 10,634     

Korea Development Bank and others

Korea Midland Power Co., Ltd.

   

Haeparang Energy Co., Ltd.

   

Collateralized money invested

      KRW 2,105     

Templeton hana asset management Co., Ltd.

     

Guarantees for supplemental funding (*1)

      —      

Korea Midland Power Co., Ltd.

   

Saemangeum Sebit Power Plant Co., Ltd.

   

Collateralized money invested

      KRW 27,098     

IBK and others

Korea Midland Power Co., Ltd.

   

Yeomsubong Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 917     

Korea Development Bank

     

Guarantees for supplemental funding (*1)

      —      

Korea South-East Power Co., Ltd.

   

Boim Combined Heat and Power Generation Co., Ltd.

   

Collateralized money invested (*3)

      —      

IBK

     

Guarantees for supplemental funding and others (*1,4)

      KRW 76,800     

NH investment & securities Co., Ltd. and others

Korea South-East Power Co., Ltd.

   

RES Technology AD

   

Collateralized money invested

      KRW 14,401     

UniCredit Bulbank and others

Korea South-East Power Co., Ltd.

   

ASM-BG Investicii AD

   

Collateralized money invested

      KRW 14,989     

UniCredit Bulbank and others

Korea South-East Power Co., Ltd.

   

Expressway Solar-light Power Generation Co., Ltd.

   

Collateralized money invested (*1)

      KRW 4,965     

Woori Bank

Korea South-East Power Co., Ltd.

   

Goseong Green Power Co., Ltd.

   

Collateralized money invested

      KRW 275,162     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

   

Gangneung Eco Power Co., Ltd.

   

Collateralized money invested

      KRW 249,929     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

   

PND Solar Co., Ltd.

   

Collateralized money invested

      KRW 1,556     

IBK

Korea South-East Power Co., Ltd.

   

Hyundai Eco Energy Co., Ltd.

   

Collateralized money invested

      KRW 7,139     

Samsung Life Insurance and others

Korea South-East Power Co., Ltd.

   

Jaeun Resident Wind Power Plant Co., Ltd.

   

Collateralized money invested

      KRW 2,052     

IBK

Korea South-East Power Co., Ltd.

   

Chungsongmeon BongSan wind power Co., Ltd.

   

Collateralized money invested

      KRW 2,573     

Kyobo Life Insurance Co., Ltd. and others

Korea South-East Power Co., Ltd.

   

Yeongam Solar Power Co., Ltd.

   

Collateralized money invested

      KRW 8,666     

Kookmin Bank and others

Korea South-East Power Co., Ltd.

   

Samsu Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 2,753     

Shinhan Bank and others

Korea South-East Power Co., Ltd.

   

Saemangeum Heemang Photovoltaic Co., Ltd.

   

Collateralized money invested

      KRW 14,177     

Woori Bank and others

Korea South-East Power Co., Ltd.

   

Nepal Water & Energy Development Company Private Limited

   

Collateralized money invested

      USD 97,105     

International Finance Corporation and others

     

Business reserve payment guarantee

      USD 33,333     

Korea South-East Power Co., Ltd.

   

Santiago Solar Power SpA

   

Debt guarantees (*8)

      USD 8,000     

Nonghyup Bank and others

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 are as follows, continued:

 

In millions of won and thousands of foreign currencies

Primary guarantor

   

Principal obligor

   

Type of guarantees

    Credit limit     

Creditor

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 2,862     

Shinhan Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Go deok Clean Energy Co., Ltd.

   

Collateralized money invested

      KRW 7,869     

Kookmin Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Cheong-Song Noraesan Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 3,396     

Woori Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Gwangyang Green Energy Co., Ltd.

   

Collateralized money invested

      KRW 24,573     

Shinhan Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Gangneung Sacheon Fuel Cell Co., Ltd.

   

Collateralized money invested

      KRW 6,802     

Hana Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Chuncheon Green Energy Co., Ltd.

   

Collateralized money invested Guarantees for supplemental funding (*1)

     

 KRW 14,303

— 

  

 

   

Hana Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Yangyang Suri Wind Power Co., Ltd.

   

Collateralized money invested

      KRW 10,069     

Kookmin Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Bigeum Resident Photovoltaic Power Co., Ltd.

   

Collateralized money invested

      —      

Kookmin Bank and others

Korea Hydro & Nuclear Power Co., Ltd.

   

Songsan Green Energy Co., Ltd.

   

Collateralized money invested

      KRW 8,288     

Hana Bank

Korea Hydro & Nuclear Power Co., Ltd.

   

Changwon Nu-ri Energy Co., Ltd.

   

Collateralized money invested

      KRW 8,013     

Hana Bank

Korea Hydro & Nuclear Power Co., Ltd.

   

KAS INVESTMENT I LLC

   

Payment guarantees (*13)

      USD 9,770     

WOORI AMERICA BANK

Korea Hydro & Nuclear Power Co., Ltd.

   

KAS INVESTMENT II LLC

   

Payment guarantees (*13)

      USD 9,730     

WOORI AMERICA BANK

 

(*1)

The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

 

(*2)

Samcheok Eco Materials Co., Ltd., an associate of the Group has issued the hybrid bonds. If the bonds are not repaid by December 8, 2026, the parent company and shareholders except the parent company must purchase the bonds from the acquirer. As of March 31, 2024, derivative liabilities of W18,753 million were recognized in relation to this obligation.

 

(*3)

The Group recognized an impairment loss on all of the equity securities of Boim Combined Heat and Power Generation Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W47,067 million.

 

(*4)

Pursuant to the guarantee agreement, the Group recognized other provisions of W8,036 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 Jordan Tafila wind power project 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 has issued a guaranteed letter of credit in the amount of USD 8,000 thousand under the interlender loan agreement with Santiago Solar Power SpA.

 

(*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. As of March 31, 2024, the book value of the securities is W40,491 million.

 

(*11)

Xe-Pian Xe-Namnoy Power Co., Ltd., an associate of the Group, has entered a contract to pay an incentive type of impounding bonus to SK Eco Plant Co., Ltd. when the Xe-Pian Xe-Namnoy Dam is completed. If Xe-Pian Xe-Namnoy Power Co., Ltd. fails to pay SK Eco Plant Co., Ltd., the Group guarantees the payment, and the amount is USD 5,000 thousand.

 

(*12)

The Group provided a payment guarantee to Chile Kelar project for opening L/C for Debt Service Reserve Account (DSRA), and others.

(*13)

The credit limits of guarantees to KAS INVESTMENT I LLC, KAS INVESTMENT II LLC include the credit limits of guarantees to their subsidiaries.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(7)

Guarantees provided to the related parties as of March 31, 2024 are as follows, continued:

 

(*14)

This is an L/C opening guarantee for the performance of each contract in relation to the power sales contract and gas supply contract of South Jamaica Power Company Limited, a joint venture of the Group.

(*15)

The Group has entered into an agreement to settle and pay the estimated loss amount in case damages occur in relation to the fulfillment of the mandatory supply volume according to the mandatory supply agreement for coal ash.

 

(8)

Guarantees received from the related parties as of March 31, 2024 are as follows:

 

In millions of won  

Primary Guarantor

   

Type of guarantees

    Credit limit  

KAPES, Inc.

    Defect guarantees    W 17,808  
   Performance guarantees      6,229  
   Advance payment guarantee      135,598  

 

(9)

Derivatives transactions with the related parties as of March 31, 2024 are as follows:

(i) Currency Swap

 

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

Counterparty

    Contract year      Contract amounts      Contract interest rate
per annum		     Contract
exchange
rate (in won)		  
   Pay      Receive      Pay     Receive  

Korea Development Bank

      2019~2024      W 177,600        USD 150,000        1.24 %      2.50 %    W 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  
     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  
     2023~2026        256,000        USD 200,000        4.04 %      5.38 %      1,280.00  
     2024~2027        864,890        USD 650,000        3.53 %      4.88 %      1,330.60  
     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  
     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  
     2024~2028        257,880        USD 200,000        3.80 %      5.00 %      1,289.40  
     2024~2028        128,940        USD 100,000        3.69 %      5.00 %      1,289.40  
     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  
     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  
     2023~2028        129,500        USD 100,000        3.85 %      4.88 %      1,295.00  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

46.

Related Parties, Continued

 

(9)

Derivatives transactions with the related parties as of March 31, 2024 are as follows, continued:

 

(ii) Currency forward

 

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

Counterparty

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

Korea Development Bank

      2024.02.29        2024.04.02      W 13,323        USD 10,000      W 1,332.30  
     2024.01.25        2024.04.08        10,645        USD 8,000        1,330.60  

 

(10)

The Group considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Group recorded salaries and other compensations related to the key management personnel as follows:

 

In millions of won              

Type

    March 31, 2024      March 31, 2023  

Salaries

    W 221        225  

Retirement benefits

      2        15  
  

 

 

     

 

 

  
   W 223        240  
  

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

47.

Statement of Cash Flows

 

(1)

Significant non-cash transactions for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won              

Transactions

    March 31, 2024      March 31, 2023  

Transfer from construction-in-progress to other assets

    W 1,553,498        2,425,036  

Recognition of asset retirement cost and related provision for decommissioning costs

      198,945        65,242  

Transfer from provision for disposal of used nuclear fuel to accrued expenses

      243,424        102,165  

Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities

      8,009,938        4,081,110  

Transfer from inventory to stored nuclear fuel

      391,967        260,804  

Recognition of right-of-use assets and others

      31,841        19,436  

 

(2)

Changes in liabilities incurred from financing activities for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

 

In millions of won    March 31, 2024  
                  Non-cash changes         
     Beginning
balance		      Cash flows     Increase      Effect of
exchange rate
fluctuations
and others		      Ending
balance		  

Borrowings and debt securities

    W 133,631,830        (3,950,651 )      —         751,705        130,432,884  

Lease liabilities

      3,807,880        (184,957 )      41,443        111,643        3,776,009  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  
   W 137,439,710        (4,135,608 )      41,443        863,348        134,208,893  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  
In millions of won    March 31, 2023  
                  Non-cash changes         
     Beginning
balance		      Cash flows     Increase      Effect of
exchange rate
fluctuations
and others		      Ending
balance		  

Borrowings and debt securities

    W 120,605,365        5,230,068       —         485,474        126,320,907  

Lease liabilities

      4,163,143        (163,649 )      20,232        86,406        4,106,132  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  
   W 124,768,508        5,066,419       20,232        571,880        130,427,039  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

48.

Commitments for Expenditure

 

(1)

The commitments for acquisition of property, plant and equipment as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  

Contracts

    Commitment
amounts		      Remaining
liability balances		      Commitment
amounts		      Remaining
liability balances		  

Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)

    W 57,226        417        57,226        417  

Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)

      51,796        4,141        51,796        20,661  

Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S

      37,168        15,109        37,168        15,109  

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        58,271        746  

Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S

      35,282        17,392        35,136        20,370  

Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)

      35,016        703        35,016        703  

Purchase of steel pipe tower (154kV, Class 2) 4,573.8ton (Unnam-Anjwa switching station)

      112,435        104,705        16,873        13,624  

Purchase of GIS (362KV, 6300A, 63KA) Type 19 – Shinyangsan S/S

      32,460        2,440        32,460        5,635  

Purchase of cable (PVC, 1C, 2500SQ) 57,868M and others (Goduk-Seoansung)

      40,937        654        40,937        654  

Purchase of cable (PVC, 1C, 2000SQ) 87,732M and others (Eulwangboonki)

      36,446        1,015        36,446        1,015  

Purchase of GIS (362KV,6300A,63KA) Type 18 – Wolsung S/Y

      33,873        26,742        32,090        26,742  

System stabilization ESS equipment (Bubuk S/S) Type 1

      222,300        47,062        222,300        145,014  

System stabilization ESS equipment (Shinnamwon S/S) Type 1

      211,500        43,333        211,500        130,169  

System stabilization ESS equipment (Yeongcheon S/S) Type 1

      73,104        18,604        73,104        18,604  

Concrete pole (10M, general purpose, 500KGF) 111,000 ea and four other equipments

      67,516        34,858        67,996        39,971  

Advanced EType low voltage electronic watt-hour meter 1,311,552 ea

      36,103        —         36,103        —   

System stabilization ESS equipment (Yesan S/S) Type 1

      56,403        12,095        56,403        12,095  

System stabilization ESS equipment (Hamyang S/S) Type 1

      35,697        12,958        35,609        12,870  

Concrete pole (10M, general purpose, 500KGF) 90,000 ea and four other equipment

      61,062        58,273        —         —   

Purchase of cable (PVC, 1C, 2500SQ) 53,856M and others (Shinchungjuboonki)

      32,474        32,474        —         —   

Purchase of GIS (362KV,6300A,63KA) Type 31 – East Seoul S/S

      39,060        39,060        —         —   

Construction of Saeul Units (#3,4)

      9,800,424        738,060        9,800,424        1,113,349  

Construction of Shin-Hanul Units (#1,2) (*)

      10,636,951        —         10,592,760        —   

Construction of Shin-Hanul Units (#3,4)

      11,680,361        10,708,205        11,680,361        10,935,737  

Other 30 contracts

      1,572,914        1,098,575        1,631,574        1,133,467  

Purchase of equipments for the construction project of Boryeong indoor coal storage yard

      335,332        262,860        334,932        279,920  

Purchase of main machine for Boryeong New Complex Unit 1

      281,600        195,744        281,600        228,053  

Boryeong New Complex Unit 1 Construction Project

      186,358        175,354        186,358        186,358  

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

      123,495        15,603        123,495        15,603  

Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant

      220,864        214        220,864        214  

Construction of Gimpo combined heat & power plant

      211,372        13,960        211,372        13,960  

Purchase of gas turbines, steam turbines, and accessories for Gumi natural gas power plant

      198,029        192,747        197,983        193,578  

Purchase of heat recovery boiler and accessories for Gumi natural gas power plant

      65,918        44,339        65,918        45,299  

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

48.

Commitments for Expenditure, Continued

 

(1)

The commitments for acquisition of property, plant and equipment as of March 31, 2024 and December 31, 2023 are as follows, continued:

 

In millions of won    March 31, 2024      December 31, 2023  

Contracts

    Commitment
amounts		      Remaining
liability balances		      Commitment
amounts		      Remaining
liability balances		  

Construction of Gumi natural gas power plant

    W 208,820        150,441        210,393        173,350  

Installation of natural gas supply facility at Gumi natural gas power plant

      70,620        52,999        70,620        61,799  

Construction of Gongju natural gas power plant

      203,849        203,849        —         —   

Installation of natural gas main machine and accessories at Gongju natural gas power plant

      301,165        301,165        —         —   

Purchase of coal handling machine for construction of Samcheok Units (#1,2)

      315,756        5,813        312,150        5,682  

Purchase of main equipment for Namjeju

      140,144        —         140,144        3  

Purchase of main equipment for Shin-Sejong combined thermal power plant

      234,392        7,425        234,392        8,342  

Purchase of Hadong thermal power indoor carboniferous plant

      167,259        46,814        167,259        48,495  

Purchase of phase 2 power generation facility for Yeongwol fuel cells

      88,428        —         86,350        219  

Purchase of fuel cell power generation facilities for the fifth stage of Shinincheon headquarters

      82,395        15,300        81,960        18,290  

 

(*)

As of March 31, 2024, the commitment amounts include the value of Shin-Hanul Unit #1, construction of which has completed during the year ended December 31, 2022. In addition, Shin-Hanul Unit #2 is in commissioning as of March 31, 2024 and has commenced its commercial operation on April 5, 2024.

 

(2)

As of March 31, 2024, details of contracts for inventory purchase commitment are as follows:

 

Type

    Periods      Contracted quantity

Concentrate

      2024 ~ 2033      22,282 Ton U3O8

Conversion

      2024 ~ 2030      14,391 Ton U

Enrichment

      2024 ~ 2035      26,943 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 817 Ton U (contract periods: 2023 ~ 2031).

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

49.

Contingencies and Commitments

 

(1)

Ongoing litigations and arbitrations related with contingent liabilities and contingent assets as of March 31, 2024 and December 31, 2023 are as follows:

 

In millions of won    March 31, 2024      December 31, 2023  
     Number of cases      Amount      Number of cases      Amount  

As the defendant

      678      W 706,410        666      W 805,227  

As the plaintiff

      269        660,997        268        571,593  

As of March 31, 2024, there are 3 ongoing litigations and 1 arbitration case between consolidated entities.

 

  1)

The Group is the defendant against a number of litigations. The following is ongoing litigation pertaining to the Group which can potentially be significant:

There are multiple ongoing litigations 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 litigations. Accordingly, the Group recognized W39,065 million as litigation provisions in relation to the litigation as of March 31, 2024.

 

  2)

There are 19 arbitration cases pertaining to the Group as of March 31, 2024 and the significant arbitration cases are as follows:

 

  i)

The Group filed an arbitration application with Westinghouse Electric Company LLC to Korean Commercial Arbitration Board, requesting to confirm whether the Group is subject to nuclear power plant export control procedures or not. As of the March 31, 2024, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

 

  ii)

The Group filed an arbitration application to Korean Commercial Arbitration Board in relation to the insufficient operation performance of 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 as of March 31, 2024.

 

  iii)

Hitachi Energy Sweden filed an arbitration against the Group regarding the request for additional payment due to the increase in capacity of some facilities and the withdrawal of liquidated damage in relation to 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 as of March 31, 2024.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(2)

Guarantees of payments and commitments provided to other companies as of March 31, 2024 are as follows:

 

  1)

The Group has provided the syndicate of lenders of PT Indo Raya Tenaga, the business corporation of PT Barito Wahana Tenaga, a guarantee by establishing the right of pledge on the shares of PT Barito Wahana Tenaga for project financing of PT Barito Wahana Tenaga as of March 31, 2024.

 

  2)

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. The Group provides a payment guarantee up to USD 2,777 thousand to Central Power Purchasing Agency Guarantee Ltd., a purchaser of power, in case of delay in completion or failure to meet contract capacity after completion. In relation to this financial agreement, the Group is providing its entire shares in Mira Power Limited and business-related PP&E as collateral to the lenders.

 

  3)

The Group has provided USD 6,085 thousand for a debt guarantee to Export-Import Bank of Korea, BNP Paribas and ING Bank, to guarantee the payment of debt related to hydroelectric power business of Tanggamus, Indonesia.

 

  4)

The Group has provided USD 5,473 thousand for a debt guarantee to PT. Bank KB Bukopin, to guarantee the payment of debt in relation to hydroelectric power business of Wampu, Indonesia.

 

  5)

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.

 

  6)

The Group has provided EUR 7,031 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.

 

  7)

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.

 

  8)

The Group has provided USD 54,000 thousand for a performance guarantee to PT. Cirebon Electric Power, to guarantee the Cirebon coal-fired power plant operation and maintenance project in Indonesia.

 

  9)

The Group has provided USD 3,355 thousand for the guarantee of debt repayment reserves of PT. Cirebon Electric Power’s Indonesia Cirebon power plant project to Mizuho Bank, Ltd. through Nonghyup Bank.

 

  10)

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.

 

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Notes to the Interim Consolidated Financial Statements, Continued

March 31, 2024 and 2023 (Unaudited)

 

49.

Contingencies and Commitments, Continued

 

(2)

Guarantees of payments and commitments provided to other companies as of March 31, 2024 are as follows, continued:

 

  11)

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.

 

  12)

The Group has provided Morgan Stanley Renewables Inc. a guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

 

  13)

The Group has provided 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.

 

  14)

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.

 

  15)

The Group has provided RBC Community Investments Impact Renewables HoldCo-1, LLC a guarantee for up to USD 62,800 thousand for the fulfillment of subscription obligation regarding Concho Valley solar power project in the United States.

 

  16)

The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to USD 2,280 thousand for the operation maintenance project in Indonesia siborpa.

 

  17)

As of March 31, 2024, 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.

 

  18)

The Group has provided joint guarantee for W1,641 million guarantee insurance contracted by Haetbyeotgil Sunlight Co., Ltd.

 

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Notes to the Consolidated Financial Statements, Continued

March 31, 2024 and December 31, 2023

 

49.

Contingencies and Commitments, Continued

 

(3)

Credit lines provided by financial institutions and others as of March 31, 2024 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      2,260,500  

Limit amount available for CP

    Hana Bank and others    KRW      5,900,000  

General Loan, etc.

    Hana Bank and others    KRW      4,400,000  

Limit amount available for card

    Hana Bank and others    KRW      47,424  

Loan limit

    Korea Development Bank and others    KRW      2,699,745  
   DBS Bank and others    USD      1,842,000  

Certification of payment on payables from foreign country

    Nonghyup Bank    USD      8,700  

Certification of payment on L/C

    Shinhan Bank and others    USD      1,167,202  
   Kookmin Bank and others    EUR      37,666  

Certification of Performance guarantee on contract

    Hana Bank and others    KRW      143,273  
   First Abu Dhabi Bank and others    USD      917,646  
   Korea Development Bank and others    JPY      620,000  
   Hana Bank    EUR      12,106  
   Hana Bank    INR      44,872  
   Hana Bank    OMR      6,250  
   Hana Bank    SAR      4,151  

Certification of bidding

    Korea Software Financial Cooperative    KRW      223,671  
   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      57,670  
   Hana Bank and others    USD      812,003  
   Hana Bank and others    MXN      21,597  

Others (*)

    Nonghyup Bank and others    KRW      374,502  
   Nonghyup Bank and others    USD      316,327  
   Standard Chartered    AED      50  

Secured loan of credit sales

    Nonghyup Bank and others    KRW      271,000  

Inclusive credit

    Hana Bank    KRW      8,000  
   Hana Bank and others    USD      135,000  

Equity Bridge Loan Guarantee

    Export-Import Bank of Korea and others    USD      1,764,555  

Trade finance

    DBS Bank and others    USD      870,000  

 

(*)

As of March 31, 2024, the Group has entered into a credit extension agreement for derivatives transactions with Nonghyup Bank, Hana Bank, and Woori Bank as ancillary to currency swap transactions.

 

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Notes to the Consolidated Financial Statements, Continued

March 31, 2024 and December 31, 2023

 

49.

Contingencies and Commitments, Continued

 

(4)

As of March 31, 2024, 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      230,259      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)

Chitose Solar Power Plant LLC

   

Korea Development Bank

   

Property, plant and equipment and others

    USD      134,289      Collateral for borrowings (*1)

Mangilao Intermediate Holdings LLC

   

Mizuho Bank

   

Trade receivable and others

    USD      88,899      Collateral for borrowings (*1)

 

(*1)

This is based on the amount of loan commitment limit.

(*2)

As of March 31, 2024, 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 W1,197 million of project loans from the Korea Energy Agency as of March 31, 2024. The Group has provided a promissory note as a repayment guarantee.

 

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Notes to the Consolidated Financial Statements, Continued

March 31, 2024 and December 31, 2023

 

49.

Contingencies and Commitments, Continued

 

(5)

The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of W61,991 million as of March 31, 2024, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W352 million and depreciation on the idle assets of W910 million are recorded in other expenses for the three-month period ended March 31, 2024. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of March 31, 2024.

 

(6)

As the government of the Republic of Korea announced the suspension of operation in Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in Gaeseong Industrial District as of March 31, 2024. The book value of facility is W11,902 million and trade receivables related to the companies residing in Gaeseong Industrial District have been fully written-off. As of March 31, 2024, the Group cannot make reasonable estimation on whether assets will be recovered or utilized in regular way related thereto.

 

(7)

As of March 31, 2024, 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 W64,371 million.

 

(8)

The Korea Institute of Energy Technology(KENTECH) was established in April, 2020, in accordance with the ”Basic plan for the establishment of KENTECH (July, 2019)”. By the special law to create KENTECH, the Group, government, and local government may contribute to the fund. The Group will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.

 

(9)

The ongoing armed conflict in Ukraine started in February 2022 and relevant sanctions against Russia imposed by the international community can impact not only sanctioned entities but also the entities doing business directly or indirectly with Ukraine or Russia and the entities exposed directly or indirectly to industries or economy of Russia or Ukraine. The Group cannot make reasonable estimation of the financial impact of the recent conflict in Ukraine on the future events.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

March 31, 2024 and December 31, 2023

 

50.

Subsequent Events

 

(1)

Subsequent to March 31, 2024, the Company borrowed long-term borrowings for the purposes of operation and details related thereto are as follows:

 

In millions of won                

Company

   

Type

    Interest
Type		    Interest rate
(%)		    Borrowing
date		      Maturity      Amount  

Korea Electric Power Corporation

   

Long-term borrowing (Mid- to long-term CP) (*)

    Floating    3M CD+0.34      2024.04.05        2027.04.05      W 250,000  
  

Long-term borrowing (Mid- to long-term CP) (*)

    Floating    3M CD+0.48      2024.04.11        2027.04.09        250,000  

 

(*)

The maturity of mid- to long-term CPs corresponds to contract period of commercial paper repurchase agreements.

 

(2)

Subsequent to March 31, 2024, Korea Southern Power Co., Ltd. and Korea East-West Power Co., Ltd., subsidiaries of the Group, issued bonds denominated in Korean won for debt repayment and operation, and details related thereto are as follows:

 

In millions of won              

Company

    Type    Issue date    Maturity    Interest rate (%)      Amount  

Korea Southern Power Co., Ltd.

    #73-1 Corporate bond    2024.05.09    2026.05.09      3.62      W  100,000  
   #73-2 Corporate bond    2024.05.09    2027.05.09      3.62        60,000  
   #73-3 Corporate bond    2024.05.09    2029.05.09      3.66        50,000  

Korea East-West Power Co., Ltd.

    #47-1 Corporate bond    2024.04.08    2027.04.08      3.62        30,000  
   #47-2 Corporate bond    2024.04.08    2029.04.06      3.67        50,000  
   #48-1 Corporate bond    2024.05.03    2026.04.30      3.65        70,000  
   #48-2 Corporate bond    2024.05.03    2027.05.03      3.71        70,000  
   #48-3 Corporate bond    2024.05.03    2029.05.03      3.78        30,000  

 

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Notes to the Consolidated Financial Statements, Continued

March 31, 2024 and December 31, 2023

 

51.

Adjusted Operating Profit (Loss)

The operating profit (loss) in the Group’s consolidated statements of comprehensive income or loss prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income or 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 or loss prepared in accordance with KIFRS for each of the three-month periods ended March 31, 2024 and 2023 to the operating profit or loss as presented in the Group’s interim consolidated statements of comprehensive income or loss prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.

 

In millions of won    March 31, 2024     March 31, 2023  

Operating profit (loss) on the interim consolidated statements of comprehensive income (loss)

    W 1,299,343       (6,177,559 ) 

Add

     

Other income

     

Reversal of other provisions

      21,812       10,586  

Gains on government grants

      —        60  

Gains on assets contributed

      882       2,022  

Gains on liabilities exempted

      155       102  

Compensation and reparations revenue

      20,690       18,947  

Foundation fund revenue

      —        1  

Rental income

      56,643       51,835  

Others

      25,212       6,183  

Other gains

     

Gains on disposal of property, plant and equipment

      34,053       6,567  

Gains on disposal of intangible assets

      11       —   

Gains on foreign currency translation

      12,931       17,039  

Gains on foreign currency transactions

      17,088       47,934  

Others

      71,021       101,769  

Deduct

     

Other expense

     

Compensation and reparations expenses

      (83 )      —   

Accretion expenses of other provisions

      (114 )      (345 ) 

Depreciation expenses on investment properties

      (159 )      (123 ) 

Depreciation expenses on idle assets

      (910 )      (914 ) 

Other bad debts expense

      (2,546 )      (2,618 ) 

Donations

      (91,293 )      (10,129 ) 

Others

      (7,411 )      (6,941 ) 

Other losses

     

Losses on disposal of property, plant and equipment

      (17,983 )      (11,304 ) 

Losses on disposal of intangible assets

      (110 )      (57 ) 

Impairment loss on property, plant and equipment

      —        (2,021 ) 

Impairment loss on intangible assets

      —        (283 ) 

Losses on foreign currency translation

      (8,605 )      (9,740 ) 

Losses on foreign currency transactions

      (42,843 )      (74,404 ) 

Others

      (40,499 )      (62,236 ) 
  

 

 

    

 

 

  

Adjusted operating profit (loss)

    W 1,347,285       (6,095,629 ) 
  

 

 

    

 

 

  

 

159

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