Form 6-K

Classification

Number of meetings

Number of agendas

Resolutions

Reports

6-K 1 d21765d6k.htm FORM 6-K Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

the Securities Exchange Act of 1934

For the Month of September 2021

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F

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

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

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

Yes ☐ No ☒

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

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

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2021 to June 30, 2021)

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.

I.	Company Overview

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

2.	Information of the company

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

(Phone number) 82-61-345-4213

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

3.	Major businesses

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

•

development of electric power resources;

•

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

•

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

•

overseas business related to the businesses mentioned above;

•

investment or contributions related to the businesses mentioned above;

•

development and operation of certain real estate holdings; and

•

other businesses entrusted by the government.

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

4.	Consolidated subsidiaries


	(As of June 30, 2021)

Listed	Unlisted	Total
2	142	144

5.	Major changes in management

On February 1, 2021, Mr. Park, Hyung-Duck and Mr. Kim, Sung-Arm resigned from his position.

On March 25, 2021, Mr. Kim, Tae-Ok was appointed as a standing director in replacement of Mr. Kim, Sung-Arm, who resigned from his position.

On April 14, 2021, Mr. Park, Hyo-Sung, Mr. Lee, Kee-Man and Mr. Hwang, Cheol-Ho were appointed non-standing directors in replacement of Mr. Kim, Jwa-Kwan, Mr. Yang, Bong-Ryull and Mr. Jung, Yeon-Gil whose term of office expired.

On May 28, 2021, Mr. Cheong, Seung-Il was appointed as the President and Chief Executive Officer in replacement of Mr. JongKap KIM whose term of office expired.

6.	Changes in major shareholders

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

7.	Information regarding KEPCO shares

Issued share capital: Won 3,210 billion (Authorized capital: Won 6 trillion)

Total number of issued shares: 641,964,077

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

Dividends: Dividend payments for fiscal year 2020 was Won 1,216 per share. KEPCO did not pay any dividends for fiscal year 2019 and 2018.

II.

Business Overview

1.	Consolidated financial results by segment for a six-month period ended June 30, 2021 and 2020


	(In billions of Won)

	January to June 2020				January to June 2021
	Sales		Operating profit		Sales		Operating profit
Electricity sales		27,855		-36		28,260		-2,005
Nuclear generation		4,798		629		5,451		1,357
Thermal generation		10,253		112		10,737		182
Others^(*)		1,926		142		2,169		229
Subtotal		44,833		848		46,617		-237
Adjustment for related- party transactions		-16,667		-27		-18,023		44

Total		28,166		820		28,594		-193

•

The figures may not add up to the relevant total numbers due to rounding.

^(*)	Others relate to subsidiaries including KEPCO E&C, KEPCO KPS, KEPCO NF and KEPCO KDN, among others.

2.	Changes in unit prices of major products


					(In Won per kWh)

Business sector		Company	January to June 2020		January to June 2021
Electricity sold	Residential			108.69		107.03
	Commercial			128.01		125.33
	Educational			104.14		96.84
	Industrial	KEPCO		105.39		102.84
	Agricultural			48.65		45.75
	Street lighting			114.91		112.87
	Overnight usage			67.21		65.14
Electricity from nuclear generation	Nuclear Generation	KHNP		57.70		69.72

Electricity from thermal generation	Thermal generation	KOSEP		92.40		99.99
		KOMIPO		84.02		89.15
		KOWEPO		95.02		96.90
		KOSPO		101.97		99.52
		EWP		89.04		102.62

3.	Power purchase from generation companies for a six-month period ended June 30, 2021


Company	Volume (GWh)		Expense (In billions of Won)
KHNP		75,930		5,301
KOSEP		20,652		1,808
KOMIPO		21,756		2,072
KOWEPO		20,708		2,005
KOSPO		21,369		2,125
EWP		20,398		2,031
Others		88,222		8,198

Total		269,035		23,540

4.	Intellectual property as of June 30, 2021


	Patents		Utility models		Designs		Trademarks		Total
KEPCO		2,592		17		100		71		2,780
Generation subsidiaries		3,311		85		57		207		3,660

Total		5,903		102		157		278		6,440

III.

Financial Information

1.	Condensed consolidated financial results as of and for a six-month period ended June 30, 2020 and 2021


							(In billions of Won)
Consolidated statements of comprehensive income						Consolidated statements of financial position
	January to June 2020	January to June 2021		Change (%)			December 31, 2020		June 30, 2021		Change (%)
Sales	28,166		28,594		1.5	Total assets		203,142		206,983		1.9
Operating profit	820		-193		n/m	Total liabilities		132,475		137,290		3.6
Net income	256		-555		n/m	Total equity		70,667		69,693		-1.4

2.	Condensed separate financial results as of and for a six-month period ended June 30, 2020 and 2021


								(In billions of Won)
Separate statements of comprehensive income							Separate statements of financial position
	January to June 2020		January to June 2021		Change (%)			December 31, 2020		June 30, 2021		Change (%)
Sales		27,855		28,260		1.5	Total assets		113,103		114,335		1.1
Operating profit		-36		-2,005		n/m	Total liabilities		59,772		62,950		5.3
Net income		38		-1,206		n/m	Total equity		53,331		51,385		-3.7

IV.

Board of Directors (KEPCO Only)

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

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

2. Board meetings and agenda for a six-month period ended June 30, 2021

*	The audit committee held 7 meetings with 22 agenda (of which, 9 were approved as proposed and 13 were accepted as reported).

3. Major activities of the Board of Directors


Date	Agenda	Results	Type
January 15, 2021	Approval of the safety management plan of 2020	Approved as proposed	Resolution
	Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director	Approved as proposed	Resolution
	Report on liquidation of the fund relating to overseas exploration and production projects	Accepted as reported	Report

February 9, 2021	Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO	Approved as proposed	Resolution

February 19, 2021	Approval to call for the annual general meeting of shareholders for the fiscal year 2020	Approved as proposed	Resolution
	Approval of consolidated and separate financial statements for the fiscal year 2020	Approved as proposed	Resolution
	Approval of Agreement on Management Performance Assessment for the President & CEO	Approved as proposed	Resolution


	Approval of amendments to the Articles of Incorporation	Approved as proposed	Resolution
	Approval of the maximum aggregate amount of remuneration for directors in 2021	Approved as proposed	Resolution
	Report on internal control over financial reporting for the fiscal year 2020	Accepted as reported	Report
	Report on the evaluation of internal control over financial reporting for the fiscal year 2020	Accepted as reported	Report
	Report on audit results for 2020	Accepted as reported	Report

March 5, 2021	Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020	Approved as proposed	Resolution

	Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders	Approved as proposed	Resolution

	Approval to revise the call for the annual general meeting of shareholders for the fiscal year 2020	Approved as proposed	Resolution

April 16, 2021	Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director	Approved as proposed	Resolution
	Approval of amendments to the Regulation for Employee Remuneration and Welfare	Approved as proposed	Resolution

May 13, 2021	Approval of nomination of the candidate of a member of Audit Committee	Approved as proposed	Resolution

	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021	Approved as proposed	Resolution

May 21, 2021	Approval of personnel increase	Approved as proposed	Resolution
	Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders	Approved as proposed	Resolution
	Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)	Approved as proposed	Resolution
	Report on audit results for the first quarter of 2021	Accepted as reported	Report

June 25, 2021	Approval of the mid-to-long term financial management plan (2021-2025)	Approved as proposed	Resolution

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

	Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020	Approved as proposed	Resolution

4. Attendance Status of Non-standing directors

Date

Agenda

Kim,
Jwa-

Kwan

Yang,
Bong-
Ryull

Jung,

Yeon-

Gil

Noh,

Geum-

Sun

Choi,

Seung-

Kook

Park,

Jong-

Bae

Seong,

Si-

Heon

Bang,

Su-

Ran

Park,

Hyo-

Sung

Lee,

Kee-

Man

Hwang,

Cheol-

January 15, 2021

Approval of the safety management plan of 2020

For

Before Appointment

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

For

Report on liquidation of the fund relating to overseas exploration and production projects

Agenda for Report

February 9, 2021

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

For

Before Appointment

February 19, 2021

Approval to call for the annual general meeting of shareholders for the fiscal year 2020

Absent

For

Absent

For

Before Appointment

Before

Appointment

Before Appointment

Approval of consolidated and separate financial statements for the fiscal year 2020

Absent

For

Absent

For

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

Absent

For

Absent

For

Approval of amendments to the Articles of Incorporation

Absent

For

Absent

For

Approval of the maximum aggregate amount of remuneration for directors in 2021

Absent

For

Absent

For

Report on internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on audit results for 2020

Agenda for Report

March 5, 2021

Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020

For

Absent

For

Absent

For

Before Appointment

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

For

Absent

For

Absent

For

Approval to revise the call for the annual general meeting of shareholders for the fiscal year 2020

For

Absent

For

Absent

For

April 16, 2021

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

Retired

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

May 13, 2021

Approval of nomination of the candidate of a member of Audit Committee

Retired

For

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

May 21, 2021

Approval of personnel increase

Retired

For

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

For

Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)

For

Report on audit results for the first quarter of 2021

Agenda for Report

June 25, 2021

Approval of the mid-to-long term financial management plan (2021-2025)

Retired

For

Absent

For

Approval of amendment to the Terms and Condition for Electricity Supply

For

Absent

For

Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020

For

Absent

For

Attendance Rate

75%

100%

87.5%

75%

100%

5. Attendance Status of Standing directors

Date

Agenda

Cheong,
Seung-

Choi,
Young-

Lee,

Heyn-

Bin

Lim,

Hyun-

Seung

Park,

Heon-

Gyu

Lee,

Jong-

Hwan

Kim,

Tae-

Jong

Kap
KIM

Park,
Hyung-

Duck

Kim,
Sung-

Arm

January 15, 2021

Approval of the safety management plan of 2020

Before Appointment

For

Before Appointment

For

Before Appointment

For

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

For

Report on liquidation of the fund relating to overseas exploration and production projects

Agenda for Report

February 9, 2021

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

Before Appointment

For

Before Appointment

For

Before Appointment

For

Retired

February 19, 2021

Approval to call for the annual general meeting of shareholders for the fiscal year 2020

Before Appointment

For

Before Appointment

For

Before Appointment

Absent

Retired

Approval of consolidated and separate financial statements for the fiscal year 2020

For

Absent

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

For

Absent

Approval of amendments to the Articles of Incorporation

For

Absent

Approval of the maximum aggregate amount of remuneration for directors in 2021

For

Absent

Report on internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on audit results for 2020

Agenda for Report

March 5, 2021

Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020

Before Appointment

For

Before Appointment

For

Before Appointment

For

Retired

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

For

Approval to revise the call for the annual general meeting of shareholders for the fiscal year 2020

For

April 16, 2021

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

Before Appointment

For

Before Appointment

For

Retired

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

May 13, 2021

Approval of nomination of the candidate of a member of Audit Committee

Before Appointment

For

Before Appointment

For

Retired

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

May 21, 2021

Approval of personnel increase

Before Appointment

For

Before Appointment

For

Retired

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

For

Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)

For

Report on audit results for the first quarter of 2021

Agenda for Report

June 25, 2021

Approval of the mid-to-long term financial management plan (2021-2025)

For

Retired

Approval of amendment to the Terms and Condition for Electricity Supply

For

Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020

For

Attendance Rate

100%

85.7%

100%

6. Major activities of the Audit Committee


Date	Agenda	Results	Type
January 15, 2021	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Approval of Audit plans for 2021	Approved as proposed	Resolution
	Report on Audit education plans in 2021	Accepted as reported	Report
	Prior report on independence of independent auditors	Accepted as reported	Report

February 19, 2021	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2020	Approved as proposed	Resolution

	Report on internal control over financial reporting for the fiscal year 2020	Accepted as reported	Report

	Report on the evaluation on internal control over financial reporting for the fiscal year 2020	Accepted as reported	Report

	Report on audit progress by independent auditors for fiscal year 2020	Accepted as reported	Report

	Report on audit results for 2020	Accepted as reported	Report
March 12, 2021	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 2020	Accepted as reported	Report

April 16, 2021	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution

	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution

	Report on the Form 20-F for the fiscal year 2020 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report

	Auditor’s report for the fiscal year 2020 in accordance with U.S. accounting principles	Accepted as reported	Report

April 28, 2021	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Approved as proposed	Resolution

May 21, 2021	Report on audit results for the first quarter of 2021	Accepted as reported	Report

	Auditor’s review report for the first quarter of 2021	Accepted as reported	Report


June 25, 2021	Approval of post evaluation results on independent auditor	Accepted as reported	Report
June 25, 2021	Independent auditor’s report on the audit plans for the fiscal year 2021	Accepted as reported	Report

July 21, 2021	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Approved as proposed	Resolution

	Approval of joint selection of independent auditors for the period from fiscal year 2022 to 2024	Approved as proposed	Resolution

	Report on the audit progress by independent auditor and its independence	Accepted as reported	Report

	Report on accounting principles for the cost pass-through tariff system	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.

7. Attendance Status of the Audit Committee


Date	Agenda	Noh, Geum-Sun	Jung, Yeon-Gil	Park, Hyo-Sung	Choi, Young-Ho
January 15, 2021	Approval of appointment of independent auditors of subsidiaries	Attended	Attended	Before Appointment	Attended
	Prior approval for non-audit service for subsidiaries by the independent auditor
	Approval of Audit plans for 2021
	Report on Audit education plans in 2021
	Prior report on independence of independent auditors

February 19, 2021	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2020	Attended	Attended	Before Appointment	Attended
	Report on internal control over financial reporting for the fiscal year 2020
	Report on the evaluation on internal control over financial reporting for the fiscal year 2020
	Report on audit progress by independent auditors for fiscal year 2020
	Report on audit results for 2020

March 12, 2021	Approval of investigation result on the agenda for the annual general meeting of shareholders	Attended	Attended	Before Appointment	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 2020

April 16, 2021	Approval of appointment of independent auditors of subsidiaries	Attended	Attended	Before Appointment	Attended
	Prior approval for non-audit service for subsidiaries by the independent auditor
	Report on the Form 20-F for the fiscal year 2020 to be filed with the U.S. Securities and Exchange Commission
	Auditor’s report for the fiscal year 2020 in accordance with U.S. accounting principles

April 28, 2021	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Attended	Attended	Before Appointment	Attended

May 21, 2021	Report on audit results for the first quarter of 2021	Attended	Attended	Before Appointment	Attended
	Auditor’s review report for the first quarter of 2021


June 25, 2021	Approval of post evaluation results on independent auditor	Attended	Retired	Attended	Attended
June 25, 2021	Independent auditor’s report on the audit plans for the fiscal year 2021	Attended	Retired	Attended	Attended

July 21, 2021	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Attended	Retired	Attended	Attended
	Approval of joint selection of independent auditors for the period from fiscal year 2022 to 2024
	Report on the audit progress by independent auditor and its independence
	Report on accounting principles for the cost pass-through tariff system

Attendance Rate		100%	100%	100%	100%

V.	Shareholder’s Meetings

1.	Summary of shareholder’s meetings for a six-month period ended June 30, 2021


Type	Agenda	Results
Annual General Meeting held on March 25, 2021	Approval of the consolidated and separate financial statements for the fiscal year 2020	Approved as proposed
	Approval of the maximum aggregate amount of remuneration for directors in 2021	Approved as proposed
	Election of a Standing Director	Approved as proposed
	Approval of amendments to the Articles of Incorporation	Approved as proposed

Extraordinary General Meeting held on May 28, 2021	Election of the President & CEO	Approved as proposed
	Election of a Standing Director	Approved as proposed
	Election of a Non-Standing Director as a Member of the Audit Committee	Approved as proposed

VI.

Shareholders

1.	List of shareholders as of June 30, 2021


		Number of shareholders		Shares owned		Percentage of total (%)
Government of the Republic of Korea			1		116,841,794		18.20
Korea Development Bank			1		211,235,264		32.90
Subtotal			2		328,077,058		51.10
National Pension Service			1		42,434,090		6.61
Public (Non-Koreans)	Common Shares		1,207		73,544,260		11.46
Public (Non-Koreans)	American depositary shares (ADS)		1		26,079,653		4.06
Public (Koreans)			692,742		171,829,016		26.77
Total			693,953		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.

VII.

Directors and employees as of and for a six-month period ended June 30, 2021 (KEPCO Only)

Directors


					(In thousands of Won)
Type		Number of directors	Total remuneration		Average remuneration per person		Remarks
Standing director		6		799,525		133,254	Excluding members of the Audit Committee
Non-standing director		6		90,000		15,000	Excluding members of the Audit Committee
Member of Audit Committee	Standing director	1		125,942		125,942	—
Member of Audit Committee	Non-standing director	2		30,000		15,000	—

Total		15		1,045,467		69,698	—

Employees


									(In thousands of Won)

Type	Number of employees						Average continuous service year		Total salaries		Average salaries per person
Type	Regular		Non-regular		Total		Average continuous service year		Total salaries		Average salaries per person
Male		18,106		83		18,189		15.2		813,981,036		44,751
Female		5,092		52		5,144		12.9		186,784,022		36,311

Total		23,198		135		23,333		14.7		1,000,765,058		42,891

VIII.

Other Information Necessary for the Protection of Investors

1.	Pending legal proceedings as of June 30, 2021


			(In billions of Won)

Type	Number of lawsuits		Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants		707		630
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs		221		754

2.	Sanctions as of June 30, 2021


Prosecution Date	Subject		Sanctions	Relevant laws (charges)	Proceedings
Prosecution Date	Position	Tenure	Sanctions	Relevant laws (charges)	Proceedings
June 30, 2021	CEO of Korea Hydro & Nuclear Power Co., Ltd. (Currently)	3yrs	Prosecution without detention	The Act on the Aggravated Punishment, etc. of specific economic crimes (Occupational breach of trust), The Criminal Act (Interference with business)	In the progress in the district court

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.

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

For the three-month and six-month periods ended June 30, 2021 and 2020

(With Independent Auditor’s Review Report Thereon)

INDEX TO FINANCIAL STATEMENTS


	Page
Independent Auditor’s Review Report

Consolidated Interim Statements of Financial Position		4

Consolidated Interim Statements of Comprehensive Income (Loss)		6

Consolidated Interim Statements of Changes in Equity		8

Consolidated Interim Statements of Cash Flows		10

Notes to the Consolidated Interim Financial Statements		12

Independent Auditor’s Review Report

Based on a report originally issued in Korean

The Shareholders and Board of Directors

Korea Electric Power Corporation:

We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated interim statement of financial position as of June 30, 2021, and the related consolidated interim statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2021 and 2020, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the six-month periods then ended June 30, 2021 and 2020, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standard (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 consolidated interim 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 Auditing Standards (KGAAS) 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 consolidated interim 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, 2020, and the related consolidated statement of comprehensive income (loss), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KGAAS, and our report dated March 10, 2021 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2020 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

August 17, 2021

This review report is effective as of August 17, 2021, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying consolidated interim financial statements and may result in modifications to this review report.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of June 30, 2021 (Unaudited) and December 31, 2020


In millions of won	*Note*		June 30, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents		5,6,7,44	W	2,727,459		2,029,584
Current financial assets, net		5,6,9,11,12,13,44,46		2,998,573		2,800,220
Trade and other receivables, net		5,8,20,24,44,45,46		7,453,484		7,918,470
Inventories, net		14		6,838,063		6,742,909
Income tax receivables				34,850		49,675
Current non-financial assets		15		1,394,578		1,020,158
Assets held-for-sale		16,41		16		925

Total current assets				21,447,023		20,561,941

Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,44,46		2,812,354		2,472,821
Non-current trade and other receivables, net		5,8,20,44,45,46		1,812,591		1,861,569
Property, plant and equipment, net		18,24,27,48		170,536,239		168,709,387
Investment properties, net		19,27		216,012		225,195
Goodwill		16		99,816		98,166
Intangible assets other than goodwill, net		21,27,45		1,053,164		1,055,730
Investments in associates		4,17		4,654,149		4,250,787
Investments in joint ventures		4,17		2,128,372		1,919,746
Defined benefit assets, net		25		—		7,231
Deferred tax assets				1,891,844		1,733,146
Non-current non-financial assets		15		331,377		246,392

Total non-current assets				185,535,918		182,580,170

Total Assets		4	W	206,982,941		203,142,111

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of June 30, 2021 (Unaudited) and December 31, 2020


In millions of won	*Note*		June 30, 2021			December 31, 2020
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,44,46	W	6,804,905			6,256,521
Current financial liabilities, net		5,12,23,44,46		15,037,316			10,724,689
Income tax payables				486,009			476,898
Current non-financial liabilities		20,28,29		6,267,728			5,971,450
Current provisions		26,44		2,392,958			2,451,664

Total current liabilities				30,988,916			25,881,222

Non-current liabilities
Non-current trade and other payables, net		5,22,24,44,46		6,386,992			6,480,412
Non-current financial liabilities, net		5,12,23,44,46		59,033,771			59,365,011
Non-current non-financial liabilities		28,29		9,939,804			9,661,941
Employee benefits liabilities, net		25,44		1,998,182			1,910,860
Deferred tax liabilities				8,660,314			9,100,247
Non-current provisions		26,44		20,282,255			20,075,572

Total non-current liabilities				106,301,318			106,594,043

Total Liabilities		4	W	137,290,234			132,475,265

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				33,282,816			32,179,066
Unappropriated retained earnings				14,923,588			17,349,625

				49,811,314			51,133,601

Other components of equity		33
Other capital surplus				1,227,509			1,224,105
Accumulated other comprehensive loss				(143,507	)		(409,577	)
Other equity				13,294,973			13,294,973

				14,378,975			14,109,501

Equity attributable to owners of the controlling company				68,243,867			69,296,680

Non-controlling interests		16,32		1,448,840			1,370,166

Total Equity			W	69,692,707			70,666,846

Total Liabilities and Equity			W	206,982,941			203,142,111

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three and six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won, except per share information			June 30, 2021						June 30, 2020
	*Note*		Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Sales		4,34,44,46
Sales of goods			W	12,910,995			27,596,215			12,559,654			27,172,498
Sales of services				94,936			192,611			93,363			213,588
Sales of construction services		20		349,348			480,439			263,957			471,378
Revenue related to transfer of assets from customers		28		163,636			324,950			155,559			308,196

				13,518,915			28,594,215			13,072,533			28,165,660

Cost of sales		14,25,42,46
Cost of sales of goods				(13,205,508	)		(26,873,841	)		(11,662,703	)		(25,340,457	)
Cost of sales of services				(57,171	)		(164,951	)		(53,692	)		(308,715	)
Cost of sales of construction services				(329,884	)		(443,604	)		(252,766	)		(416,764	)

				(13,592,563	)		(27,482,396	)		(11,969,161	)		(26,065,936	)

Gross profit (loss)				(73,648	)		1,111,819			1,103,372			2,099,724

Selling and administrative expenses		25,35,42,46		(691,141	)		(1,304,960	)		(713,562	)		(1,279,360	)

Operating profit (loss)		4		(764,789	)		(193,141	)		389,810			820,364

Other income		36		89,136			189,045			111,008			197,532

Other expenses		36		(70,782	)		(89,938	)		(100,049	)		(116,661	)

Other gains (losses), net		37		(33	)		19,478			89,570			151,508

Finance income		5,12,38		148,568			629,296			411,180			794,671

Finance expenses		5,12,39		(474,454	)		(1,491,184	)		(684,460	)		(1,691,222	)

Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Share in profit of associates and joint ventures				77,670			327,528			29,520			269,482
Gain on disposal of investments in associates and joint ventures				42			41			—			—
Share in loss of associates and joint ventures				—			(50,707	)		(28,828	)		(62,952	)
Loss on disposal of investments in associates and joint ventures				(83	)		(161	)		—			(16	)
Loss on disposal of investments in subsidiaries				(1,090	)		(1,192	)		—			—

				76,539			275,509			692			206,514

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three and six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won, except per share information			June 30, 2021						June 30, 2020
	*Note*		Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Profit (loss) before income tax			W	(995,815	)		(660,935	)		217,751			362,706

Income tax benefit (expense)		40		321,962			105,498			(14,899	)		(106,246	)

Profit (loss) for the period				(673,853	)		(555,437	)		202,852			256,460
Other comprehensive income (loss), net of tax		5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability		25,31	W	1,521			67,751			(59,274	)		(95,559	)
Share in other comprehensive income (loss) of associates and joint ventures		31		375			(1,176	)		1,366			1,118
Net change in fair value of financial assets at fair value through other comprehensive income (loss)		33		16,332			35,065			11,282			(40,262	)
Items that are or 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		40,183			36,858			24,864			48,881
Foreign currency translation of foreign operations		33		6,732			27,984			(49,450	)		(4,728	)
Share in other comprehensive income (loss) of associates and joint ventures		33		46,014			184,552			(2,906	)		(41,737	)

Other comprehensive income (loss) for the period				111,157			351,034			(74,118	)		(132,287	)

Total comprehensive income (loss) for the period			W	(562,696	)		(204,403	)		128,734			124,173

Profit (loss) attributable to:
Owners of the controlling company		43	W	(695,836	)		(610,120	)		166,212			189,191
Non-controlling interests				21,983			54,683			36,640			67,269

			W	(673,853	)		(555,437	)		202,852			256,460

Total comprehensive income (loss) attributable to:
Owners of the controlling company			W	(580,707)			(275,589	)		100,858			44,457
Non-controlling interests				18,011			71,186			27,876			79,716

			W	(562,696	)		(204,403	)		128,734			124,173

Earnings (loss) per share (in won)		43
Basic and diluted earnings (loss) per share			W	(1,084	)		(950	)		259			295

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
Balance at January 1, 2020	W	4,053,578		49,202,133			14,240,607			67,496,318			1,393,331			68,889,649
Total comprehensive income (loss) for the period
Profit for the period		—		189,191			—			189,191			67,269			256,460
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(98,606	)		—			(98,606	)		3,047			(95,559	)
Share in other comprehensive income of associates and joint ventures, net of tax		—		1,118			—			1,118			—			1,118
Net change in fair value of financial assets at fair value through other comprehensive loss		—		—			(40,262	)		(40,262	)		—			(40,262	)
Items that are or 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		—		—			38,826			38,826			10,055			48,881
Foreign currency translation of foreign operations, net of tax		—		—			(4,067	)		(4,067	)		(661	)		(4,728	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			(41,743	)		(41,743	)		6			(41,737	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		—			—			—			(66,732	)		(66,732	)
Issuance of shares of capital by subsidiaries and others		—		—			(544	)		(544	)		17,299			16,755
Transactions between consolidated entities		—		(203	)		(905	)		(1,108	)		1,039			(69	)
Changes in consolidation scope		—		—			—			—			2,947			2,947
Dividends paid (hybrid bond)		—		—			—			—			(6,692	)		(6,692	)

Balance at June 30, 2020	W	4,053,578		49,293,633			14,191,912			67,539,123			1,420,908			68,960,031

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
Balance at January 1, 2021	W	4,053,578		51,133,601			14,109,501			69,296,680			1,370,166			70,666,846
Total comprehensive income (loss) for the period
Profit (Loss) for the period		—		(610,120	)		—			(610,120	)		54,683			(555,437	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		65,183			—			65,183			2,568			67,751
Share in other comprehensive loss of associates and joint ventures, net of tax		—		(1,176	)		—			(1,176	)		—			(1,176	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax		—		—			35,064			35,064			1			35,065
Items that are or 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		—		—			35,545			35,545			1,313			36,858
Foreign currency translation of foreign operations, net of tax		—		—			15,363			15,363			12,621			27,984
Share in other comprehensive income of associates and joint ventures, net of tax		—		—			184,552			184,552			—			184,552
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		(780,628	)		—			(780,628	)		(30,620	)		(811,248	)
Issuance of shares of capital by subsidiaries and others		—		—			(373	)		(373	)		2,845			2,472
Transactions between consolidated entities		—		—			3,777			3,777			(3,850	)		(73	)
Changes in consolidation scope		—		—			—			—			45,805			45,805
Dividends paid (hybrid bond)		—		—			—			—			(6,692	)		(6,692	)
Others		—		4,454			(4,454	)		—			—			—

Balance at June 30, 2021	W	4,053,578		49,811,314			14,378,975			68,243,867			1,448,840			69,692,707

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won	June 30, 2021			June 30, 2020
Cash flows from operating activities
Profit (loss) for the period	W	(555,437	)		256,460
Adjustments to reconcile net profit (loss) to net cash flows provided by operating activities:
Income tax expense (benefit)		(105,498	)		106,246
Depreciation		5,842,974			5,645,802
Amortization		84,883			77,610
Employee benefit expense		246,609			225,370
Bad debt expense		9,524			23,688
Interest expense		919,385			1,020,873
Loss on disposal of financial assets		385			365
Loss on disposal of property, plant and equipment		29,058			19,253
Loss on abandonment of property, plant, and equipment		110,074			137,601
Loss on impairment of property, plant, and equipment		3,315			2,425
Loss on impairment of intangible assets		—			3,505
Loss on disposal of intangible assets		37			—
Increase in provisions		1,107,891			840,093
Loss on foreign currency translation, net		434,314			414,990
Gain on valuation of financial assets at fair value through profit or loss		(2,121	)		(10,100	)
Loss on valuation of financial assets at fair value through profit or loss		4,817			1,085
Valuation and transaction gain on derivative instruments, net		(391,172	)		(453,039	)
Share in profit of associates and joint ventures, net		(276,821	)		(206,530	)
Gain on disposal of financial assets		(2,393	)		(3,826	)
Gain on disposal of property, plant and equipment		(22,274	)		(56,163	)
Gain on disposal of intangible assets		—			(1,556	)
Gain on disposal of associates and joint ventures		(41	)		—
Loss on disposal of associates and joint ventures		161			16
Loss on disposal of subsidiaries		1,192			—
Interest income		(107,132	)		(130,576	)
Dividend income		(6,143	)		(4,085	)
Others, net		(835	)		(11,509	)

		7,880,189			7,641,538

Changes in working capital:
Trade receivables		604,791			713,513
Non-trade receivables		470,459			134,228
Accrued income		(65,348	)		111,634
Other receivables		2,739			(1,236	)
Other current assets		(386,905	)		(358,611	)
Inventories		(496,072	)		(283,163	)
Other non-current assets		38,291			(113,267	)
Trade payables		159,320			(1,180,390	)
Non-trade payables		(185,305	)		(21,648	)
Accrued expenses		3,670			(102,675	)
Other current liabilities		303,615			511,705
Other non-current liabilities		240,892			365,112
Investments in associates and joint ventures (dividends received)		142,748			90,526
Provisions		(1,300,461	)		(705,831	)
Payments of employee benefit obligations		(70,082	)		(34,519	)
Plan assets		(1,625	)		(3,304	)

		(539,273	)		(877,926	)

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows, Continued

For the six-month periods ended June 30, 2021 and 2020 (Unaudited)


In millions of won	June 30, 2021			June 30, 2020
Cash generated from operating activities	W	6,785,479			7,020,072
Dividends received (financial assets at fair value through other comprehensive income)		6,143			4,085
Interest paid		(961,601	)		(1,022,791	)
Interest received		92,667			114,247
Income taxes paid		(549,452	)		(274,398	)

Net cash provided by operating activities		5,373,236			5,841,215

Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures		3,362			93
Acquisition of investments in associates and joint ventures		(237,525	)		(67,063	)
Proceeds from disposals of property, plant and equipment		135,954			193,054
Acquisition of property, plant and equipment		(6,785,446	)		(6,920,206	)
Proceeds from disposals of intangible assets		—			37,164
Acquisition of intangible assets		(36,906	)		(92,768	)
Proceeds from disposals of financial assets		4,574,901			3,681,126
Acquisition of financial assets		(4,875,562	)		(4,738,796	)
Increase in loans		(85,296	)		(154,179	)
Collection of loans		152,921			139,310
Increase in deposits		(105,017	)		(139,251	)
Decrease in deposits		69,053			128,707
Proceeds from disposals of assets held-for-sale		950			4,862
Receipt of government grants		21,205			21,436
Use of government grants		—			(104	)
Net cash outflow from changes in consolidation scope		(53,141	)		(25,094	)
Other cash outflow from investing activities, net		(118,023	)		(112,060	)

Net cash used in investing activities		(7,338,570	)		(8,043,769	)

Cash flows from financing activities
Proceeds from short-term borrowings, net		3,335,734			198,766
Proceeds from long-term borrowings and debt securities		4,616,161			7,520,906
Repayment of long-term borrowings and debt securities		(4,273,653	)		(5,279,770	)
Payment of lease liabilities		(322,048	)		(353,977	)
Settlement of derivative instruments, net		27,978			106,247
Change in non-controlling interest		49,430			9,806
Dividends paid (hybrid bond)		(6,692	)		(6,692	)
Dividends paid		(811,261	)		(67,011	)
Other cash outflow from financing activities, net		(6,504	)		—

Net cash provided by financing activities		2,609,145			2,128,275

Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations		643,811			(74,279	)

Effect of exchange rate fluctuations on cash held		54,064			11,390

Net increase (decrease) in cash and cash equivalents		697,875			(62,889	)

Cash and cash equivalents at January 1		2,029,584			1,810,129

Cash and cash equivalents at June 30	W	2,727,459			1,747,240

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

June 30, 2021 and 2020 (Unaudited)

1.	Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”) 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 also provides power plant construction services. KEPCO’s stock was first listed on the Korea Stock Exchange on August 10, 1989 and subsequently on the New York Stock Exchange on October 27, 1994 through its depository receipts. KEPCO’s headquarter is located in Naju, Jeollanam-do.

As of June 30, 2021, 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 99,623,913 shares (15.52%) as of June 7, 2021.

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 consolidated interim financial statements have been prepared in accordance with KIFRS 1034 ‘Interim Financial Reporting’ as part of the period covered by KEPCO and subsidiaries’ (the “Group”) KIFRS annual financial statements.

(2)

Basis of measurement

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

•

financial assets at fair value through profit or loss

•

financial assets at fair value through other comprehensive income or loss

•

derivative financial instruments are measured at fair value

•

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

(3)

Functional and presentation currency

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

(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.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

2.	Basis of Preparation, Continued

(4)

Use of estimates and judgments, continued

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

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

(i)

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

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

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

(ii)

Deferred tax

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

(iii)

Valuations of financial instruments at fair values

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

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

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

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

(iv)

Defined employee benefit liabilities

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

2.	Basis of Preparation, Continued

(4)

Use of estimates and judgments, continued

(v)

Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of June 30, 2021 and 2020 are W1,397,539 million and W1,200,336 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. Cost 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.

(5)

Changes in accounting policies

Changes in accounting standards effective from January 1, 2021 are as follows. The Group believes that these amendments have no significant impact on the Group’s consolidated interim financial statements. The Group has not applied the new and revised standards in issue but not yet effective for the periods starting from January 1, 2021, even though the early adoption of these standards is possible.

Amendments to KIFRS 1109 ’Financial Instruments’, KIFRS 1039 ‘Financial Instruments: Recognition and Measurement’, KIFRS 1107 ‘Financial Instruments: Disclosures’, KIFRS 1104 ‘Insurance Contracts’ and KIFRS 1116 ‘Lease’ – Interest Rate Benchmark Reform Phase II

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

•

A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

•

Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued

•

Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

(6)

Adoption of cost pass-through tariff system

The Group adopted the cost pass-through tariff system from January 1, 2021 with the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020 and amended the supply contract and related enforcement regulations. The new system is applicable to electricity bills charged from January 1, 2021. The Group believes that the adoption of the aforementioned system has no significant impact on the Group’s accounting policies, including ‘Revenue from Contracts with Customers’.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

3.	Significant Accounting Policies

The accounting policies applied by the Group in these consolidated interim 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, 2020, except for the changes described in Note 2.(5).

4.	Segment, Geographic and Other Information

(1)

Segment determination and explanation of the measurements

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

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(2)

Financial information of the segments for the three and six month periods ended June 30, 2021 and 2020, respectively, are as follows:


In millions of won
June 30, 2021
Segment	Total segment revenue						Intersegment revenue						Revenue from external customers				Operating Profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related associates, joint ventures and subsidiaries
	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Transmission and distribution	W	13,432,735			28,260,429			479,068			807,740			12,953,667		27,452,689		(1,033,309	)		(2,005,053	)		983,181			1,965,104			8,486			17,222			157,294			319,756			76,827			240,393
Electric power generation (Nuclear)		2,494,055			5,450,726			2,463,639			5,397,948			30,416		52,778		481,865			1,357,269			914,463			1,820,892			6,494			11,462			118,839			237,679			(12,442	)		(10,516	)
Electric power generation (Non-nuclear)		4,972,394			10,736,759			4,710,931			10,174,676			261,463		562,083		(362,504	)		181,736			1,046,255			2,069,207			5,344			9,618			148,964			299,725			10,828			44,751
Plant maintenance & engineering service		676,212			1,245,624			578,263			1,068,246			97,949		177,378		56,952			122,883			30,321			60,899			2,315			4,384			(179	)		428			1,326			881
Others		467,437			923,453			292,017			574,166			175,420		349,287		65,928			106,610			43,221			76,126			37,126			77,854			39,317			76,086			—			—
Consolidation adjustments		(8,523,918	)		(18,022,776	)		(8,523,918	)		(18,022,776	)		—		—		26,279			43,414			(35,704	)		(64,371	)		(6,616	)		(13,408	)		(7,664	)		(14,289	)		—			—

	W	13,518,915			28,594,215			—			—			13,518,915		28,594,215		(764,789	)		(193,141	)		2,981,737			5,927,857			53,149			107,132			456,571			919,385			76,539			275,509


In millions of won
June 30, 2020
Segment	Total segment revenue						Intersegment revenue						Revenue from external customers				Operating Profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related associates, joint ventures and subsidiaries
	Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended		Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Transmission and distribution	W	12,949,805			27,855,438			308,207			622,550			12,641,598		27,232,888		511,584			(35,737	)		953,481			1,891,259			13,274			29,555			189,008			389,396			(10,308	)		119,577
Electric power generation (Nuclear)		2,313,385			4,798,440			2,267,478			4,723,706			45,907		74,734		301,691			629,119			898,674			1,779,294			5,968			11,913			124,358			248,714			(363	)		(1,350	)
Electric power generation (Non-nuclear)		4,331,240			10,252,902			4,149,281			9,822,314			181,959		430,588		(475,019	)		111,882			1,009,093			1,998,647			6,049			11,616			158,632			319,242			8,858			84,240
Plant maintenance & engmeenng service		615,533			1,161,160			557,986			970,706			57,547		190,454		33,143			65,071			29,502			59,037			3,310			6,866			403			893			2,505			4,047
Others		406,081			764,771			260,559			527,775			145,522		236,996		41,351			77,288			32,498			59,892			43,921			87,118			42,580			79,075			—			—
Consolidation adjustments		(7,543,511	)		(16,667,051	)		(7,543,511	)		(16,667,051	)		—		—		(22,940	)		(27,259	)		(38,909	)		(64,717	)		(8,453	)		(16,492	)		(10,492	)		(16,447	)		—			—

	W	13,072,533			28,165,660			—			—			13,072,533		28,165,660		389,810			820,364			2,884,339			5,723,412			64,069			130,576			504,489			1,020,873			692			206,514

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(3)

Information related to segment assets and segment liabilities as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won
June 30, 2021
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	114,346,372			4,522,173		3,764,662			62,950,000
Electric power generation (Nuclear)		62,987,655			121,533		1,086,052			36,214,709
Electric power generation (Non-nuclear)		55,251,998			2,096,035		1,764,627			34,099,476
Plant maintenance & engineering service		3,601,040			42,780		33,690			1,141,163
Others		9,980,877			—		257,287			4,426,726
Consolidation adjustments		(39,185,001	)		—		(83,966	)		(1,541,840	)

	W	206,982,941			6,782,521		6,822,352			137,290,234


In millions of won
December 31, 2020
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	113,115,667			4,204,090		6,535,380			59,772,046
Electric power generation (Nuclear)		61,850,865			116,867		2,419,939			35,652,467
Electric power generation (Non-nuclear)		54,531,155			1,807,409		3,758,795			33,292,680
Plant maintenance & engineering service		3,492,571			42,167		141,226			1,061,949
Others		8,923,046			—		577,056			4,039,220
Consolidation adjustments		(38,771,193	)		—		(30,731	)		(1,343,097	)

	W	203,142,111			6,170,533		13,401,665			132,475,265

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(4)

Geographic information

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


In millions of won	Revenue from external customers								*Non-current assets (2)**
	June 30, 2021				June 30, 2020				June 30, 2021		December 31, 2020
Geographical unit	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended		June 30, 2021		December 31, 2020
Domestic	W	13,050,876		27,861,216		12,711,311		27,494,423		175,739,847		173,673,478
Overseas (*1)		468,039		732,999		361,222		671,237		3,279,282		2,831,925

	W	13,518,915		28,594,215		13,072,533		28,165,660		179,019,129		176,505,403

(*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 which accounts for 10% or more of the Group’s revenue for the six-month periods ended June 30, 2021 and 2020.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

5.	Classification of Financial Instruments

(1)

Classification of financial assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	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	—		—		2,727,459		—		2,727,459
Current financial assets
Current financial assets at fair value through profit or loss		2,044,847		—		—		—		2,044,847
Current financial assets at amortized costs		—		—		14,154		—		14,154
Current derivative assets		42,189		—		—		12,327		54,516
Other financial assets		—		—		885,056		—		885,056
Trade and other receivables		—		—		7,453,484		—		7,453,484

		2,087,036		—		11,080,153		12,327		13,179,516

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		700,635		—		—		—		700,635
Non-current financial assets at fair value through other comprehensive income		—		391,899		—		—		391,899
Non-current financial assets at amortized costs		—		—		1,210		—		1,210
Non-current derivative assets		197,379		—		—		114,275		311,654
Other financial assets		—		—		1,406,956		—		1,406,956
Trade and other receivables		—		—		1,812,591		—		1,812,591

		898,014		391,899		3,220,757		114,275		4,624,945

	W	2,985,050		391,899		14,300,910		126,602		17,804,461

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

5.	Classification of Financial Instruments, Continued

(1)

Classification of financial assets as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won	December 31, 2020
	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	—		—		2,029,584		—		2,029,584
Current financial assets
Current financial assets at fair value through profit or loss		1,196,101		—		—		—		1,196,101
Current financial assets at amortized costs		—		—		13,149		—		13,149
Current derivative assets		18,332		—		—		11,193		29,525
Other financial assets		—		—		1,561,445		—		1,561,445
Trade and other receivables		—		—		7,918,470		—		7,918,470

		1,214,433		—		11,522,648		11,193		12,748,274

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		685,281		—		—		—		685,281
Non-current financial assets at fair value through other comprehensive income		—		358,559		—		—		358,559
Non-current financial assets at amortized costs		—		—		1,273		—		1,273
Non-current derivative assets		92,432		—		—		44,456		136,888
Other financial assets		—		—		1,290,820		—		1,290,820
Trade and other receivables		—		—		1,861,569		—		1,861,569

		777,713		358,559		3,153,662		44,456		4,334,390

	W	1,992,146		358,559		14,676,310		55,649		17,082,664

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

5.	Classification of Financial Instruments, Continued

(2)

Classification of financial liabilities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	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	—		5,621,941		—		5,621,941
Debt securities		—		9,388,796		—		9,388,796
Derivative liabilities		2,518		—		24,061		26,579
Trade and other payables		—		6,804,905		—		6,804,905

		2,518		21,815,642		24,061		21,842,221

Non-current liabilities
Borrowings		—		2,838,692		—		2,838,692
Debt securities		—		56,082,040		—		56,082,040
Derivative liabilities		57,137		—		55,902		113,039
Trade and other payables		—		6,386,992		—		6,386,992

		57,137		65,307,724		55,902		65,420,763

	W	59,655		87,123,366		79,963		87,262,984


In millions of won	December 31, 2020
	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	—		2,113,181		—		2,113,181
Debt securities		—		8,561,624		—		8,561,624
Derivative liabilities		13,053		—		36,831		49,884
Trade and other payables		—		6,256,521		—		6,256,521

		13,053		16,931,326		36,831		16,981,210

Non-current liabilities
Borrowings		—		3,003,999		—		3,003,999
Debt securities		—		56,045,777		—		56,045,777
Derivative liabilities		144,873		—		170,362		315,235
Trade and other payables		—		6,480,412		—		6,480,412

		144,873		65,530,188		170,362		65,845,423

	W	157,926		82,461,514		207,193		82,826,633

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

5.	Classification of Financial Instruments, Continued

(3)

Classification of comprehensive income (loss) from financial instruments for the three and six month periods ended June 30, 2021 and 2020 are as follows:


In millions of won		June 30, 2021						June 30, 2020
		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended
Cash and cash equivalents	Interest income	W	826			2,398			6,866			24,126
	Gain (Loss) on foreign currency transactions and translations		(949	)		10,849			(507	)		12,945
Financial assets at fair value through profit or loss	Interest income		5,330			8,764			6,359			9,081
	Dividends income		1,227			1,365			2,203			2,203
	Gain (Loss) on valuation of financial assets		(2,684	)		(2,696	)		3,015			9,015
	Gain on disposal of financial assets		1,512			2,008			3,508			3,461
	Gain (Loss) on foreign currency transactions and translations		1,600			1,600			(138	)		(138	)
Financial assets at fair value through other comprehensive income	Dividends income		2,553			4,778			1,840			1,882
Financial assets at amortized cost	Interest income		116			363			231			321
	Gain (Loss) on foreign currency transactions and translations		(127	)		738			(461	)		791
Loans	Interest income		4,240			8,673			19,167			32,519
	Gain (Loss) on foreign currency transactions and translations		(26	)		310			(151	)		252
Trade and other receivables	Interest income		35,354			74,188			9,801			22,294
	Gain (Loss) on foreign currency transactions and translations		23,887			11,501			(8,636	)		11,879
Short-term financial instruments	Interest income		2,744			6,001			8,530			17,032
	Gain (Loss) on foreign currency transactions and translations		(6,226	)		13,280			(19,384	)		25,449
Long-term financial instruments	Interest income		4,490			6,658			3,589			6,451
	Gain on foreign currency transactions and translations		13			13			—			—
Other financial assets	Interest income		48			87			9,527			18,752
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities		297,416			611,766			348,995			706,503
	Loss on repayment of financial liabilities		(10	)		(10	)		(30	)		(30	)
	Interest expense of trade and other payables		52,266			94,898			47,195			97,988
	Interest expense of others		106,890			212,721			108,300			216,382
	Other finance income		129			991			138			287
	Other finance expenses		597			1,213			—			—
	Gain (Loss) on foreign currency transactions and translations		2,316			(484,925	)		246,025			(529,122	)
Derivative assets (trading)	Gain (Loss) on valuation of derivatives		56,135			212,892			(2,729	)		246,091
	Gain (Loss) on transaction of derivatives		(3,091	)		7,472			(5,339	)		14,997
Derivatives (applying hedge accounting)	Gain (Loss) on valuation of derivatives (profit or loss)		(6,448	)		150,253			(104,038	)		124,137
	Gain on valuation of derivatives (equity, before tax)		75,627			61,671			45,354			77,697
	Gain on transaction of derivatives		6,955			20,555			60,234			67,814

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

6.	Restricted Deposits

Restricted deposits as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won		June 30, 2021		December 31, 2020

Cash and cash equivalents	Escrow accounts	W	559		544
	Deposits for government project and others		19,743		5,066
	Collateral provided for borrowings		176,276		117,747
	Collateral provided for lawsuit		42		42
	Deposits for transmission regional support program		10,207		5,469
Short-term financial instruments	Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others		114,000		109,000
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants		579,344		577,481
Long-term financial instruments	Escrow accounts		95		76
	Guarantee deposits for banking accounts at oversea branches		318		306
	Collateral provided for borrowings		11,745		11,745
	Decommissioning costs of nuclear power plants		263,661		258,282
	Funds for developing small and medium enterprises (*)		210,000		210,000


		W	1,385,990		1,295,758

(*)	Deposits for small and medium enterprise at the Industrial Bank of Korea (IBK) and others for construction of Bitgaram Energy Valley and support for high potential businesses as of June 30, 2021 and December 31, 2020.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

7.	Cash and Cash Equivalents

Cash and cash equivalents as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020

Cash	W	735		871
Other demand deposits		1,374,486		1,291,058
Short-term deposits classified as cash equivalents		860,770		432,263
Short-term investments classified as cash equivalents		491,468		305,392


	W	2,727,459		2,029,584

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

8.	Trade and Other Receivables

(1)

Trade and other receivables as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	6,832,036		(201,808	)		—			6,630,228
Other receivables		857,629		(33,108	)		(1,265	)		823,256

		7,689,665		(234,916	)		(1,265	)		7,453,484

Non-current assets
Trade receivables		181,428		(483	)		—			180,945
Other receivables		1,689,877		(54,608	)		(3,623	)		1,631,646

		1,871,305		(55,091	)		(3,623	)		1,812,591


	W	9,560,970		(290,007	)		(4,888	)		9,266,075


In millions of won	December 31, 2020
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	7,370,923		(208,184	)		—			7,162,739
Other receivables		799,598		(42,332	)		(1,535	)		755,731

		8,170,521		(250,516	)		(1,535	)		7,918,470

Non-current assets
Trade receivables		227,261		(806	)		—			226,455
Other receivables		1,728,486		(90,047	)		(3,325	)		1,635,114

		1,955,747		(90,853	)		(3,325	)		1,861,569


	W	10,126,268		(341,369	)		(4,860	)		9,780,039

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

8.	Trade and Other Receivables, Continued

(2)

Other receivables as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	446,949		(31,623	)		—			415,326
Accrued income		58,587		—			—			58,587
Deposits		265,804		—			(1,265	)		264,539
Finance lease receivables (*1)		57,875		(191	)		—			57,684
Others		28,414		(1,294	)		—			27,120

		857,629		(33,108	)		(1,265	)		823,256

Non-current assets
Non-trade receivables		104,508		(48,544	)		—			55,964
Accrued income		1,066		—			—			1,066
Deposits		388,362		—			(3,623	)		384,739
Finance lease receivables (*2)		1,102,726		(658	)		—			1,102,068
Others		93,215		(5,406	)		—			87,809

		1,689,877		(54,608	)		(3,623	)		1,631,646


	W	2,547,506		(87,716	)		(4,888	)		2,454,902

(*1)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W106,915 million.

(*2)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,084,025 million.


In millions of won	December 31, 2020
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	441,031		(37,062	)		—			403,969
Accrued income		38,956		—			—			38,956
Deposits		239,011		—			(1,535	)		237,476
Finance lease receivables (*1)		57,084		(365	)		—			56,719
Others		23,516		(4,905	)		—			18,611

		799,598		(42,332	)		(1,535	)		755,731

Non-current assets
Non-trade receivables		215,136		(80,451	)		—			134,685
Accrued income		834		—			—			834
Deposits		364,855		—			(3,325	)		361,530
Finance lease receivables (*2)		1,065,982		(625	)		—			1,065,357
Others		81,679		(8,971	)		—			72,708

		1,728,486		(90,047	)		(3,325	)		1,635,114


	W	2,528,084		(132,379	)		(4,860	)		2,390,845

(*1)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W105,127 million.

(*2)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,087,559 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.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

8.	Trade and Other Receivables, Continued

(4)

Aging analysis of trade receivables as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020

Trade receivables: (not overdue)	W	6,706,188			7,274,773

Trade receivables: (impairment reviewed)		307,276			323,411

Less than 60 days		5,217			3,505
60 ~ 90 days		20,748			28,729
90 ~ 120 days		20,017			10,687
120 days ~ 1 year		37,958			34,036
Over 1 year		223,336			246,454

		7,013,464			7,598,184
Less: allowance for doubtful accounts		(202,291	)		(208,990	)
	W	6,811,173			7,389,194

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 trade receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Group recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5)

Changes in the allowance for doubtful accounts for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021						December 31, 2020
	Trade receivables			Other receivables			Trade receivables			Other receivables

Beginning balance	W	208,990			132,379			212,759			114,155
Bad debts expense		3,304			7,068			24,021			27,329
Write-off, etc.		(9,375	)		(33,737	)		(20,332	)		(1,910	)
Reversal		(769	)		(79	)		(3,373	)		(2,464	)
Others		141			(17,915	)		(4,085	)		(4,731	)


Ending balance	W	202,291			87,716			208,990			132,379

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

9.	Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate	W	52,925		187,527		1,313		155,122
Cooperative		—		5,984		—		5,692
Other (*)		1,991,922		276,199		1,194,788		312,401

		2,044,847		469,710		1,196,101		473,215

Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives		—		230,925		—		212,066

	W	2,044,847		700,635		1,196,101		685,281

(*)	‘Other’ includes MMT, etc.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income

(1)

Changes in financial assets at fair value through other comprehensive income for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance

Listed	W	194,669		1,500		(8,208	)		34,640			3,431			226,032
Unlisted		163,890		3,376		(13	)		(309	)		(1,077	)		165,867

		358,559		4,876		(8,221	)		34,331			2,354			391,899

Current financial assets at fair value through other comprehensive income	W	—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income		358,559		4,876		(8,221	)		34,331			2,354			391,899


In millions of won	December 31, 2020
	Beginning balance		Acquisition		Disposal			Valuation			Others		Ending balance

Listed	W	201,201		—		(4	)		(7,809	)		1,281		194,669
Unlisted		177,969		2,900		(1	)		(23,128	)		6,150		163,890

		379,170		2,900		(5	)		(30,937	)		7,431		358,559

Current financial assets at fair value through other comprehensive income	W	—		—		—			—			—		—
Non-current financial assets at fair value through other comprehensive income		379,170		2,900		(5	)		(30,937	)		7,431		358,559

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)

Financial assets at fair value through other comprehensive income as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		99,053		99,053
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		107		107
SM Korea Line Corp.		180		0.00	%		1		1		1
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%		15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		51		51
PAN Ocean Co., Ltd.		1,492		0.00	%		14		13		13
STX Heavy Industries Co., Ltd.		7,419		0.03	%		107		62		62
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		45,115		45,115
Denison Mines Corp.		58,284,000		9.76	%		84,134		80,199		80,199
Fission Uranium Corp.		100,000		0.02	%		41		57		57
SangSangin Industry Co., Ltd.		5,831		0.01	%		38		7		7
Vitzrosys Co., Ltd.		399		0.00	%		2		2		2
EMnI Co., Ltd.		1,257		0.01	%		25		2		2
Vissem electronics, Co., Ltd.		229		0.00	%		11		1		1
KC Industry Co., Ltd.		139		0.00	%		6		1		1
Ihsung CNI Co., Ltd.		142,860		4.81	%		1,500		1,359		1,359

							324,771		226,032		226,032

Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
PT. Kedap Sayaaq		671		10.00	%		18,540		—		—
Set Holding (*2)		1,100,220		2.50	%		229,255		143,765		143,765
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,533		2,533
SGC Greenpower		580,000		5.00	%		2,900		2,900		2,900
Le Soleil KHNP Co., Ltd.		724,182		19.00	%		1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%		1,500		1,500		1,500
H Robotics Co., Ltd.		9,192		4.55	%		1,000		1,000		1,000
Good Tcells Co., Ltd.		11,364		0.40	%		500		500		500
IPSbio Co., Ltd.		1,975		3.13	%		1,000		1,000		1,000
Nine B Co., Ltd.		5,000		4.96	%		1,000		1,000		1,000

Hwan Young Steel Co., Ltd. and others (*3)							12,269		9,139		9,139

							277,152		165,867		165,867

						W	601,923		391,899		391,899

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

(*2)

The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the six-month periods ended June 30, 2021.

(*3)	Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 323 companies including Hwan Young Steel Co., Ltd.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)

Financial assets at fair value through other comprehensive income as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won	December 31, 2020
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		91,356		91,356
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		107		107
SM Korea Line Corp.		180		0.00	%		1		1		1
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%		15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		49		49
PAN Ocean Co., Ltd.		1,492		0.00	%		14		7		7
Dongbu Corp.		955		0.02	%		12		13		13
KSP Co., Ltd.		22,539		0.08	%		53		34		34
STX Heavy Industries Co., Ltd.		7,419		0.12	%		107		29		29
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		53,127		53,127
Energy Fuels Inc.		1,711,814		1.31	%		16,819		7,888		7,888
Bunji Corporation Limited		99,763		0.07	%		18,445		—		—
Denison Mines Corp.		58,284,000		9.76	%		84,134		41,776		41,776
Fission 3.0		75,000		0.05	%		—		6		6
Fission Uranium Corp.		800,000		0.16	%		785		266		266
SangSangin Industry Co., Ltd.		5,831		0.02	%		38		4		4
Vitzrosys Co., Ltd.		399		0.00	%		2		2		2
EMnI Co., Ltd.		1,257		0.00	%		25		2		2

							359,327		194,669		194,669

Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
PT. Kedap Sayaaq		671		10.00	%		18,540		—		—
Set Holding (*2)		1,100,220		2.50	%		229,255		143,765		143,765
SGC Energy Co., Ltd.		580,000		5.00	%		2,900		2,900		2,900
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,440		2,440
Seobu Highway Solar Co., Ltd.		19,460		2.86	%		195		195		195
Dongbu Highway Solar Co., Ltd.		19,020		4.99	%		190		190		190
H Robotics Co., Ltd.		9,192		4.55	%		1,000		1,000		1,000
Good Tcells Co., Ltd.		11,364		0.34	%		500		500		500
Ihsung CNI Co., Ltd.		13,526		9.11	%		3,000		3,000		3,000
Hwan Young Steel Co., Ltd. and others (*3)							12,104		8,746		8,746

							275,496		163,890		163,890

						W	634,823		358,559		358,559

(*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)

(*3)	Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 283 companies including Hwan Young Steel Co., Ltd.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

11.

Financial Assets at Amortized Cost

Financial assets at amortized cost as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value

Government bonds	W	1,364		—		—		—		1,364
Others		14,000		—		—		—		14,000


	W	15,364		—		—		—		15,364


Current	W	14,154		—		—		—		14,154
Non-current		1,210		—		—		—		1,210


In millions of won	December 31, 2020
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value

Government bonds	W	1,422		—		—		—		1,422
Others		13,000		—		—		—		13,000


	W	14,422		—		—		—		14,422


Current	W	13,149		—		—		—		13,149
Non-current		1,273		—		—		—		1,273

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives

(1)

Derivatives as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Derivative assets
Currency forward	W	41,172		436		18,332		—
Currency swap		12,327		302,205		11,193		127,386
Interest rate swap		1,017		9,013		—		9,502

	W	54,516		311,654		29,525		136,888

Derivative liabilities
Currency forward	W	409		—		10,014		4,977
Currency swap		23,515		54,650		36,088		232,669
Interest rate swap		2,655		47,217		3,782		66,451
Others (*1,2,3)		—		11,172		—		11,138

	W	26,579		113,039		49,884		315,235

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

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

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives, Continued

(2)

Currency forward contracts which are not designated as hedging instruments as of June 30, 2021 are as follows:

In millions of won and thousands of USD except contract exchange rate information


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

Korea Development Bank		2021.04.01		2021.10.01	W	56,599	USD	50,178	W	1,127.95
Hana Bank		2014.04.10		2021.07.12		55,120	USD	52,000		1,060.00
Hana Bank		2014.04.28		2021.07.12		50,784	USD	48,000		1,058.00
Bank of America		2014.04.29		2021.07.12		105,400	USD	100,000		1,054.00
Hana Bank		2014.05.09		2021.07.12		104,600	USD	100,000		1,046.00
Hana Bank		2017.12.22		2021.07.12		105,079	USD	100,000		1,050.79
Korea Development Bank		2017.12.27		2021.07.12		104,849	USD	100,000		1,048.49
Kookmin Bank		2021.06.22		2021.07.19		5,661	USD	5,000		1,132.16
Kookmin Bank		2021.06.29		2021.08.02		11,304	USD	10,000		1,130.35
Credit Agricole		2021.06.11		2021.07.12		5,632	USD	5,000		1,126.39
Shinhan Bank		2021.04.06		2021.07.01		12,196	USD	10,865		1,122.45
Shinhan Bank		2021.04.26		2021.07.20		13,575	USD	12,202		1,112.55
Shinhan Bank		2021.04.29		2021.07.27		9,769	USD	8,817		1,108.00
Shinhan Bank		2021.05.26		2021.08.02		13,951	USD	12,487		1,117.25
Shinhan Bank		2021.05.26		2021.08.16		8,640	USD	7,737		1,116.65
Korea Development Bank		2021.06.11		2021.07.09		5,560	USD	5,000		1,112.04
Korea Development Bank		2021.06.25		2021.07.28		11,323	USD	10,000		1,132.30
Korea Development Bank		2021.06.30		2021.07.16		5,644	USD	5,000		1,128.70
CCB		2021.06.11		2021.07.13		5,559	USD	5,000		1,111.74
CCB		2021.06.25		2021.07.29		11,313	USD	10,000		1,131.30
Standard Chartered		2021.06.24		2021.07.23		5,672	USD	5,000		1,134.30
Standard Chartered		2021.06.29		2021.08.04		11,294	USD	10,000		1,129.40
Morgan Stanley		2021.06.24		2021.07.22		5,677	USD	5,000		1,135.35
Morgan Stanley		2021.06.29		2021.08.03		11,299	USD	10,000		1,129.90
Woori bank		2021.06.09		2021.07.06		5,576	USD	5,000		1,115.20
Woori bank		2021.06.25		2021.07.16		11,290	USD	10,000		1,129.00
Hana Bank		2021.06.25		2021.07.27		5,662	USD	5,000		1,132.30
Hana Bank		2021.06.30		2021.08.05		11,299	USD	10,000		1,129.94
Nonghyup Bank		2021.06.25		2021.07.30		11,305	USD	10,000		1,130.45
HSBC		2021.06.01		2021.07.12		9,409	USD	8,500		1,106.89
HSBC		2021.06.02		2021.07.12		11,102	USD	10,000		1,110.19
HSBC		2021.06.03		2021.07.12		5,003	USD	4,500		1,111.74
HSBC		2021.06.17		2021.07.05		11,296	USD	10,000		1,129.57
HSBC		2021.06.25		2021.07.13		22,580	USD	20,000		1,128.98
HSBC		2021.06.30		2021.07.20		11,297	USD	10,000		1,129.70
Credit Agricole		2021.05.31		2021.07.01		5,574	USD	5,000		1,114.80
Nonghyup Bank		2021.06.11		2021.07.09		1,329	USD	1,197		1,111.00
MUFG		2021.06.16		2021.07.14		5,587	USD	5,000		1,117.30
Nonghyup Bank		2021.06.22		2021.07.15		5,662	USD	5,000		1,132.40
MUFG		2021.06.24		2021.07.19		7,961	USD	7,000		1,137.27
CCB		2021.06.24		2021.07.16		13,625	USD	12,000		1,135.45
Standard Chartered		2021.06.25		2021.07.06		5,641	USD	5,000		1,128.10
Woori bank		2021.06.29		2021.08.02		5,653	USD	5,000		1,130.65
Nonghyup Bank		2021.06.29		2021.07.26		5,647	USD	5,000		1,129.30
HSBC		2021.06.30		2021.07.13		5,636	USD	5,000		1,127.20
Standard Chartered		2021.06.30		2021.07.16		5,636	USD	5,000		1,127.25
CCB		2021.06.30		2021.07.20		5,633	USD	5,000		1,126.58
HSBC		2021.06.25		2021.07.16		6,774	USD	6,000		1,129.00
Suhyup Bank		2021.06.25		2021.07.16		7,563	USD	6,700		1,128.80
SMBC		2021.06.22		2021.07.19		3,398	USD	3,000		1,132.77
Nonghyup Bank		2021.06.25		2021.07.26		7,906	USD	7,000		1,129.40
Woori bank		2021.06.25		2021.07.26		7,904	USD	7,000		1,129.10

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives, Continued

(2)

Currency forward contracts which are not designated as hedging instruments as of June 30, 2021 are as follows, continued:

In millions of won and thousands of USD except contract exchange rate information


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

Busan Bank		2021.06.29		2021.07.30	W	4,742	USD	4,200	W	1,129.15
HSBC		2020.10.19		2024.10.29		140,913	USD	125,000		1,127.30
MUFG		2021.05.27		2021.07.09		5,585	USD	5,000		1,116.90
Shinhan Bank		2021.06.04		2021.07.16		5,028	USD	4,500		1,117.30
Standard Chartered		2021.06.04		2021.07.16		5,026	USD	4,500		1,116.90
Woori Bank		2021.06.10		2021.07.23		5,576	USD	5,000		1,115.20
Hana Bank		2021.06.11		2021.07.23		3,368	USD	3,028		1,112.24
Hana Bank		2021.06.11		2021.07.30		5,564	USD	5,000		1,112.73
Shinhan Bank		2021.06.11		2021.07.30		5,561	USD	5,000		1,112.25
Woori Bank		2021.06.22		2021.08.13		5,667	USD	5,000		1,133.40
Shinhan Bank		2021.06.22		2021.08.13		5,668	USD	5,000		1,133.50
Standard Chartered		2021.06.22		2021.08.13		5,661	USD	5,000		1,132.20
Woori Bank		2021.06.23		2021.08.13		5,681	USD	5,000		1,136.10
MUFG		2021.06.23		2021.08.13		5,675	USD	5,000		1,134.95
Credit Agricole		2021.06.23		2021.08.13		4,542	USD	4,000		1,135.60
MUFG		2021.06.24		2021.08.13		4,517	USD	4,000		1,129.25
Standard Chartered		2021.06.24		2021.08.20		2,259	USD	2,000		1,129.50
Credit Agricole		2021.06.24		2021.08.20		4,516	USD	4,000		1,129.03
Standard Chartered		2021.06.29		2021.08.20		4,522	USD	4,000		1,130.60
Standard Chartered		2021.06.29		2021.08.02		3,388	USD	3,000		1,129.40

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives, Continued

(3)

Currency swap contracts which are not designated as hedging instruments as of June 30, 2021 are as follows:

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


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

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
Citibank	2012~2022		112,930		USD 100,000	2.79%	3.00%		1,129.30
JP Morgan	2012~2022		112,930		USD 100,000	2.79%	3.00%		1,129.30
Bank of America	2012~2022		112,930		USD 100,000	2.79%	3.00%		1,129.30
Shinhan Bank	2016~2022		112,930		USD 100,000	2.79%	3.00%		1,129.30
HSBC	2012~2022		111,770		USD 100,000	2.89%	3.00%		1,117.70
Hana Bank	2012~2022		111,770		USD 100,000	2.87%	3.00%		1,117.70
Standard Chartered	2012~2022		111,770		USD 100,000	2.89%	3.00%		1,117.70
Deutsche Bank	2012~2022		55,885		USD 50,000	2.79%	3.00%		1,117.70
Nomura	2015~2025		111,190		USD 100,000	2.60%	3.25%		1,111.90
Korea Development Bank	2015~2025		111,190		USD 100,000	2.62%	3.25%		1,111.90
Woori Bank	2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Hana Bank	2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Woori Bank	2017~2027		111,610		USD 100,000	2.25%	3.13%		1,116.10
Korea Development Bank	2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Hana Bank	2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Korea Development Bank	2018~2028		108,600		HKD 800,000	2.69%	3.35%		135.75
Shinhan Bank	2018~2028		115,387		HKD 850,000	2.66%	3.35%		135.75
Korea Development Bank	2018~2023		170,280		USD 150,000	2.15%	3.75%		1,135.20
Woori Bank	2018~2023		170,280		USD 150,000	2.18%	3.75%		1,135.20
Hana Bank	2018~2023		113,520		USD 100,000	2.17%	3.75%		1,135.20
Shinhan Bank	2018~2023		227,040		USD 200,000	2.17%	3.75%		1,135.20
Citibank	2019~2024		239,956		CHF 200,000	1.44%	0.00%		1,199.78
Korea Development Bank	2019~2027		119,978		CHF 100,000	1.43%	0.05%		1,199.78
Woori Bank	2021~2026		222,800		USD 200,000	0.93%	1.25%		1,114.00
Shinhan Bank	2021~2026		111,400		USD 100,000	0.92%	1.25%		1,114.00
Korea Development Bank	2021~2026		111,400		USD 100,000	0.93%	1.25%		1,114.00
Nonhyup Bank	2021~2026		111,400		USD 100,000	0.93%	1.25%		1,114.00
HSBC	2019~2024		USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%		USD 0.69

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives, Continued

(4)

Currency swap contracts which are designated as hedging instruments as of June 30, 2021 are as follows:

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


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

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
Korea Development Bank	2016~2021		121,000		USD 100,000	2.15%	2.50%		1,210.00
Morgan Stanley	2016~2021		121,000		USD 100,000	3M Libor + 2.10%	2.50%		1,210.00
BNP Paribas	2016~2021		121,000		USD 100,000	3M Libor + 2.10%	2.50%		1,210.00
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
Korea Development Bank	2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Kookmin Bank	2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Woori Bank	2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Korea Development Bank	2018~2023		320,880		USD 300,000	2.03%	3.75%		1,069.60
BNP Paribas	2019~2024		111,841		CHF 100,000	1.78%	0.13%		1,118.41
Kookmin Bank	2019~2024		111,841		CHF 100,000	1.78%	0.13%		1,118.41
Korea Development Bank	2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
Hana Bank	2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
Kookmin Bank	2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
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
Hana Bank	2017~2022		226,600		USD 200,000	1.94%	2.63%		1,133.00
Korea Development Bank	2017~2022		113,300		USD 100,000	1.94%	2.63%		1,133.00
Nomura	2017~2022		113,300		USD 100,000	1.95%	2.63%		1,133.00
Woori Bank	2017~2022		56,650		USD 50,000	1.95%	2.63%		1,133.00
Kookmin Bank	2017~2022		56,650		USD 50,000	1.95%	2.63%		1,133.00
Korea Development Bank	2018~2023		169,335		USD 150,000	2.26%	3.88%		1,128.90
Woori Bank	2018~2023		169,335		USD 150,000	2.26%	3.88%		1,128.90
Credit Agricole	2018~2023		112,890		USD 100,000	2.26%	3.88%		1,128.90
Hana Bank	2018~2023		56,445		USD 50,000	2.26%	3.88%		1,128.90
Kookmin Bank	2018~2023		56,445		USD 50,000	2.26%	3.88%		1,128.90
Woori Bank	2020~2025		245,560		USD 200,000	0.93%	1.75%		1,227.80
Hana Bank	2020~2025		245,560		USD 200,000	0.93%	1.75%		1,227.80
Korea Development Bank	2020~2025		122,780		USD 100,000	0.93%	1.75%		1,227.80

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

12.

Derivatives, Continued

(5)

Interest rate swap contracts which are not designated as hedging instruments as of June 30, 2021 are as follows:

In millions of won

Counterparty

Contract year

Contract interest rate per annum

Contract
amount

Pay

Receive

Hana Bank

2017~2022

100,000

2.01%

3M CD + 0.24%

Hana Bank

2017~2022

100,000

2.06%

3M CD + 0.27%

Hana Bank

2017~2021

200,000

2.45%

3M CD + 0.32%

Nomura (*1)

2018~2038

30,000

2.56%

3.75%

Hana Bank

2018~2023

200,000

2.15%

3M CD + 0.19%

Hana Bank

2018~2023

200,000

2.17%

3M CD + 0.19%

Hana Bank

2018~2023

150,000

2.03%

3M CD + 0.21%

Hana Bank

2019~2024

200,000

1.87%

3M CD + 0.13%

Societe Generale

2017~2022

200,000

3M Libor + 3.44%

3.77%

Nomura

2017~2032

52,457

3M Libor + 2.22%

2.60%

Nomura

2017~2032

59,423

3M Libor + 2.24%

2.62%

Nomura (*2)

2021~2041

30,000

1.84%

2.60%

(*1)	2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(*2)	1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(6)

Interest rate swap contracts which are designated as hedging instruments as of June 30, 2021 are as follows:

In thousands of USD

Counterparty

Contract year

Contract interest rate per annum

Contract
amount

Pay

Receive

Export-Import Bank of Korea

2015~2031

USD 15,893

2.67

6M USD Libor

ING Bank

2015~2031

USD 7,861

2.67

6M USD Libor

BNP Paribas

2015~2031

USD 7,861

2.67

6M USD Libor

BNP Paribas

2009~2027

USD 69,509

4.16

6M USD Libor

KFW

2009~2027

USD 69,509

4.16

6M USD Libor

Export-Import Bank of Korea

2016~2036

USD 75,929

3.00

6M USD Libor

(7)

Gain and loss on valuation and transaction of derivatives for the three and six-month periods ended June 30, 2021 and 2020 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):


In millions of won	Net income effects of valuation gain (loss)											Net income effects of transaction gain (loss)												Accumulated other *comprehensive income (loss) ()**
	June 30, 2021					June 30, 2020						June 30, 2021						June 30, 2020						June 30, 2021					June 30, 2020
	Three- month period ended			Six- month period ended		Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended			Three- month period ended			Six- month period ended		Three- month period ended			Six- month period ended

Currency forward	W	(684	)		28,406		(7,951	)		30,971			(40	)		7,632			(3,409	)		10,128			—			—		—			—
Currency swap		44,690			320,236		(96,687	)		358,262			7,293			27,237			60,507			76,197			78,687			55,085		45,487			63,974
Interest rate swap		5,681			14,503		(2,129	)		(19,005	)		(3,389	)		(6,842	)		(2,203	)		(3,514	)		(3,060	)		6,586		(133	)		13,723

	W	49,687			363,145		(106,767	)		370,228			3,864			28,027			54,895			82,811			75,627			61,671		45,354			77,697

(*)	For the three and six-month period ended June 30, 2021, the net income on valuation of derivatives applying cash flow hedge accounting of W36,858 million, net of tax, is included in other comprehensive income (loss).

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

13.

Other Financial Assets

(1)

Other financial assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021						December 31, 2020
	Current			Non-current			Current			Non-current

Loans	W	77,630			847,633			78,806			762,555
Less: Allowance for doubtful accounts		—			(20,266	)		(1	)		(20,266	)
Less: Present value discount		(824	)		(30,288	)		(842	)		(30,090	)

		76,806			797,079			77,963			712,199

Long-term / short-term financial instruments		808,250			609,877			1,483,482			578,621


	W	885,056			1,406,956			1,561,445			1,290,820

(2)

Loans as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Face value		Allowance for doubtful accounts			Present value discount			Carrying value

Short-term loans
Loans for tuition	W	29,649		—			(824	)		28,825
Loans for housing		23,711		—			—			23,711
Other loans		24,270		—			—			24,270

		77,630		—			(824	)		76,806

Long-term loans
Loans for tuition		426,881		(9,091	)		(30,288	)		387,502
Loans for housing		265,396		—			—			265,396
Loans for related parties		150,908		(11,175	)		—			139,733
Fisheries loan		190		—			—			190
Other loans		4,258		—			—			4,258

		847,633		(20,266	)		(30,288	)		797,079


	W	925,263		(20,266	)		(31,112	)		873,885


In millions of won	December 31, 2020
	Face value		Allowance for doubtful accounts			Present value discount			Carrying value

Short-term loans
Loans for tuition	W	33,864		—			(842	)		33,022
Loans for housing		21,988		—			—			21,988
Fisheries loan		3,816		—			—			3,816
Other loans		19,138		(1	)		—			19,137

		78,806		(1	)		(842	)		77,963

Long-term loans
Loans for tuition		420,274		(9,091	)		(30,090	)		381,093
Loans for housing		237,100		—			—			237,100
Loans for related parties		50,682		(1,047	)		—			49,635
Other loans		54,499		(10,128	)		—			44,371

		762,555		(20,266	)		(30,090	)		712,199


	W	841,361		(20,267	)		(30,932	)		790,162

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

13.

Other Financial Assets, Continued

(3)

Changes in the allowance for doubtful accounts of loans for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020

Beginning balance	W	20,267			15,094
Bad debts expense		—			5,173
Others		(1	)		—


Ending balance	W	20,266			20,267

(4)

Long-term and short-term financial instruments as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current

Time deposits	W	641,529		144,187		996,265		160,433
CP		15,000		—		—		—
CD		10,000		—		50,000		—
RP		20,000		—		203,008		—
Others		121,721		465,690		234,209		418,188


	W	808,250		609,877		1,483,482		578,621

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

14.

Inventories

Inventories as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Acquisition cost		Valuation allowance			Book value

Raw materials	W	3,298,381		(885	)		3,297,496
Merchandises		1,550		—			1,550
Work-in-progress		164,306		—			164,306
Finished goods		70,634		—			70,634
Supplies		2,418,727		(3,689	)		2,415,038
Inventories-in-transit		876,346		—			876,346
Other inventories		12,693		—			12,693


	W	6,842,637		(4,574	)		6,838,063


In millions of won	December 31, 2020
	Acquisition cost		Valuation allowance			Book value

Raw materials	W	3,602,073		(885	)		3,601,188
Merchandises		234		—			234
Work-in-progress		148,067		—			148,067
Finished goods		42,070		—			42,070
Supplies		2,280,682		(7,892	)		2,272,790
Inventories-in-transit		666,967		—			666,967
Other inventories		11,593		—			11,593


	W	6,751,686		(8,777	)		6,742,909

The reversals of the allowance for loss on inventory valuation due to increase in the net realizable value of inventories deducted from cost of sales for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 were W8,627 million and W2,020 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 were W4,424 million and W4,998 million, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

15.

Non-Financial Assets

Non-financial assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current

Advanced payments	W	207,380		115,923		169,737		32,693
Prepaid expenses		525,481		160,781		216,073		140,730
Others (*)		661,717		54,673		634,348		72,969


	W	1,394,578		331,377		1,020,158		246,392

(*)	Details of others as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current

Greenhouse gas emissions rights	W	251,196		—		357,355		—
Other quick assets		410,521		54,673		276,993		72,969


	W	661,717		54,673		634,348		72,969

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries

(1)

Consolidated subsidiaries as of June 30, 2021 and December 31, 2020 are as follows:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 2021			December 31, 2020
Korea Hydro & Nuclear Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Korea South-East Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Korea Midland Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Korea Western Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Korea Southern Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Korea East-West Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
KEPCO Engineering & Construction Company, Inc. (*1)	Engineering and construction for utility plant and others	KOREA		65.77	%		65.77	%
KEPCO Plant Service & Engineering Co., Ltd.	Utility plant maintenance and others	KOREA		51.00	%		51.00	%
KEPCO Nuclear Fuel Co., Ltd.	Nuclear fuel	KOREA		96.36	%		96.36	%
KEPCO KDN Co., Ltd.	Electric power information technology and others	KOREA		100.00	%		100.00	%
KEPCO International HongKong Ltd.	Holding company	HONG KONG		100.00	%		100.00	%
KEPCO International Philippines Inc.	Holding company	PHILIPPINES		100.00	%		100.00	%
KEPCO Gansu International Ltd.	Holding company	HONG KONG		100.00	%		100.00	%
KEPCO Philippines Holdings Inc.	Holding company	PHILIPPINES		100.00	%		100.00	%
KEPCO Philippines Corporation	Operation of utility plant	PHILIPPINES		100.00	%		100.00	%
KEPCO Ilijan Corporation	Construction and operation of utility plant	PHILIPPINES		51.00	%		51.00	%
KEPCO Lebanon SARL	Operation of utility plant	LEBANON		100.00	%		100.00	%
KEPCO Neimenggu International Ltd.	Holding company	HONG KONG		100.00	%		100.00	%
KEPCO Shanxi International Ltd.	Holding company	HONG KONG		100.00	%		100.00	%
KOMIPO Global Pte Ltd.	Holding company	SINGAPORE		100.00	%		100.00	%
KEPCO Netherlands B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
Korea Imouraren Uranium Investment Corp.	Holding company	FRANCE		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		80.00	%		80.00	%
KEPCO Holdings de Mexico	Holding company	MEXICO		100.00	%		100.00	%
KST Electric Power Company, S.A.P.I. de C.V.	Construction and operation of utility plant	MEXICO		56.00	%		56.00	%
KEPCO Energy Service Company	Operation of utility plant	MEXICO		100.00	%		100.00	%
KEPCO Netherlands S3 B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
PT. KOMIPO Pembangkitan Jawa Bali	Operation of utility plant	INDONESIA		51.00	%		51.00	%
PT. Cirebon Power Service (*2)	Operation of utility plant	INDONESIA		27.50	%		27.50	%
KOWEPO International Corporation	Operation of utility plant	PHILIPPINES		99.99	%		99.99	%
KOSPO Jordan LLC	Operation of utility plant	JORDAN		100.00	%		100.00	%
EWP America Inc.	Holding company	USA		100.00	%		100.00	%
EWP Renewable Corporation	Holding company	USA		100.00	%		100.00	%
DG Fairhaven Power, LLC	Power generation	USA		—			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	%
EWPRC Biomass Holdings, LLC	Holding company	USA		100.00	%		100.00	%
KOSEP USA, Inc.	Power generation	USA		100.00	%		100.00	%
PT. EWP Indonesia	Holding company	INDONESIA		99.96	%		99.96	%

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(1)

Consolidated subsidiaries as of June 30, 2021 and December 31, 2020 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 2021			December 31, 2020
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	%
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		50.00	%		50.00	%
VI Carbon Professional Private Special Asset Investment Trust 1	Holding company	KOREA		—			96.67	%
Chitose Solar Power Plant LLC	Power generation	JAPAN		80.10	%		80.10	%
KEPCO Energy Solution Co., Ltd.	Energy service	KOREA		100.00	%		100.00	%
KEPCO Solar Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
KOSPO Power Services Ltda.	Utility plant maintenance and others	CHILE		65.00	%		65.00	%
Energy New Industry Specialized Investment Private Investment Trust	Holding company	KOREA		99.01	%		99.01	%
KOEN Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOMIPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOWEPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOSPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
EWP Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOWEPO Lao International	Utility plant maintenance and others	LAOS		100.00	%		100.00	%
KEPCO US Inc.	Holding company	USA		100.00	%		100.00	%
KEPCO Alamosa LLC	Holding company	USA		50.10	%		50.10	%
KEPCO Solar of Alamosa LLC	Power generation	USA		100.00	%		100.00	%
KEPCO Mangilao Holdings LLC (*5)	Holding company	USA		100.00	%		100.00	%
Mangilao Investment LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mangilao Solar, LLC	Power generation	USA		100.00	%		100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	KOREA		79.56	%		75.99	%
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	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	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	%
KEPCO Mangilao America LLC (*6)	Holding company	USA		100.00	%		100.00	%

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(1)

Consolidated subsidiaries as of June 30, 2021 and December 31, 2020 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	June 30, 2021			December 31, 2020
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	%
TS Energy No. 25 Co., Ltd.	Power generation	KOREA		90.00	%		90.00	%
KPS Partners Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
KEPCO E&C Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
Moha Solar Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Ogiri Solar Power Co., Ltd.	Power generation	KOREA		70.00	%		70.00	%
KHNP USA LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Vanphong Power Service LLC	Utility plant maintenance and others	VIETNAM		100.00	%		100.00	%
Energy Innovation Fund I	Holding company	KOREA		71.91	%		71.91	%
KHNP Chile SpA	Holding company	CHILE		100.00	%		—
Yeong Yang Apollon Photovoltaic Co., Ltd.	Power generation	KOREA		100.00	%		—
Yeong Yang Corporation Co., Ltd.	Power generation	KOREA		100.00	%		—
SolarVader Co., Ltd.	Power generation	KOREA		100.00	%		—
Yeong Yang Innovation Co., Ltd.	Power generation	KOREA		100.00	%		—
Yeong Yang Horus Photovoltaic Co., Ltd.	Power generation	KOREA		100.00	%		—
Yeong Yang Solar Management Co., Ltd.	Power generation	KOREA		100.00	%		—
LSG Hydro Power Limited	Holding company	PAKISTAN		99.80	%		—
KOEN Bio Co., Ltd.	Wood pellet utilization business	KOREA		70.00	%		—
KOMIPO Energy Solution America, LLC	Holding company	USA		100.00	%		—
Elara Investment Holdings, LLC (*7)	Holding company	USA		0.10	%		—
Elara Equity Holdings, LLC	Holding company	USA		51.22	%		—
Elara Class B Holdings, LLC	Holding company	USA		100.00	%		—
Elara Class B Member, LLC	Holding company	USA		100.00	%		—
Elara Development Holdings, LLC	Holding company	USA		100.00	%		—
Elara Development, LLC	Holding company	USA		100.00	%		—
Elara Energy Holdings, LLC	Holding company	USA		100.00	%		—
Elara Energy Project, LLC	Power generation	USA		100.00	%		—
KOMIPO Iberian Solar Group, S.L.U.	Holding company	SPAIN		100.00	%		—
Prime Swedish Holding AB	Holding company	SWEDEN		100.00	%		—

(*1)	Considering treasury stocks, the effective percentage of ownership is 66.08%.

(*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 through the shareholders’ agreement.

(*3)	As of the reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited which is November 30.

(*4)

The Group guarantees a certain return on investment related to Commerce and Industry Energy Co., Ltd. for the financial investors. The financial investors have a right to sell their shares to the Group which can be exercised 84 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability.

(*5)	As of the end of the reporting period, the Group does not have a shareholding; however, this subsidiary is included in the consolidated financial statements as the Group has control over the entity by virtue of the right to nominate all 4 members of the board of directors.

(*6)	As of the end of the reporting period, the Group does not have a shareholding; however, this subsidiary is included in the consolidated financial statements as the Group has control over the entity by virtue of the right to nominate the CEO and key management members.

(*7)	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 entity by virtue of the right to nominate all 3 members of the board of directors under the shareholders’ agreement.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(2)

Subsidiaries newly included in and excluded from consolidation for the six-month period ended June 30, 2021 are as follows:

Subsidiaries included in consolidation during the six-month period ended June 30, 2021.


Subsidiaries		Reason
KHNP Chile SpA		Newly established
Yeong Yang Apollon Photovoltaic Co., Ltd.		New investment
Yeong Yang Corporation Co., Ltd.		New investment
SolarVader Co., Ltd.		New investment
Yeong Yang Innovation Co., Ltd.		New investment
Yeong Yang Horus Photovoltaic Co., Ltd.		New investment
Yeong Yang Solar Management Co., Ltd.		New investment
LSG Hydro Power Limited		Newly established
KOEN Bio Co., Ltd.		Newly established
KOMIPO Energy Solution America, LLC		Newly established
Elara Investment Holdings, LLC		Newly established
Elara Equity Holdings, LLC		Newly established
Elara Class B Holdings, LLC		Newly established
Elara Class B Member, LLC		Newly established
Elara Development Holdings, LLC		Newly established
Elara Development, LLC		Newly established
Elara Energy Holdings, LLC		Newly established
Elara Energy Project, LLC		New investment
KOMIPO Iberian Solar Group, S.L.U.		New investment
Prime Swedish Holding AB		Newly established

Subsidiaries excluded from consolidation during the six-month period ended June 30, 2021.


Subsidiaries		Reason
DG Fairhaven Power, LLC		Sale of shares
VI Carbon Professional Private Special Asset Investment Trust 1		Liquidation

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won
June 30, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	62,999,526		36,214,709		5,450,726		840,670
Korea South-East Power Co., Ltd.		10,762,417		5,857,081		2,165,727		26,204
Korea Midland Power Co., Ltd.		13,438,584		9,792,093		2,103,849		(13,570	)
Korea Western Power Co., Ltd.		10,499,827		6,796,340		2,105,632		(49,402	)
Korea Southern Power Co., Ltd.		10,772,741		6,610,216		2,231,773		(77,432	)
Korea East-West Power Co., Ltd.		9,775,104		5,043,747		2,129,778		58,270
KEPCO Engineering & Construction Company, Inc.		687,339		192,736		155,521		2,872
KEPCO Plant Service & Engineering Co., Ltd.		1,381,297		304,022		688,435		76,317
KEPCO Nuclear Fuel Co., Ltd.		881,822		457,884		115,167		18,972
KEPCO KDN Co., Ltd.		651,768		186,521		286,501		7,608
KEPCO International HongKong Ltd.		125,352		—		—		493
KEPCO International Philippines Inc.		146,068		217		—		7,788
KEPCO Gansu International Ltd.		6,834		532		—		(10	)
KEPCO Philippines Holdings Inc.		207,153		118		—		37,661
KEPCO Philippines Corporation		6,125		13		—		(70	)
KEPCO Ilijan Corporation		323,911		38,057		31,369		8,695
KEPCO Lebanon SARL		1,704		9,333		—		(27	)
KEPCO Neimenggu International Ltd.		224,452		2,699		—		2,628
KEPCO Shanxi International Ltd.		514,713		194,708		—		(3,949	)
KOMIPO Global Pte Ltd.		282,805		585		—		7,874
KEPCO Netherlands B.V.		123,146		307		—		1,096
Korea Imouraren Uranium Investment Corp.		14,013		140		—		(23	)
KEPCO Australia Pty., Ltd.		460		11		—		9

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
June 30, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
KOSEP Australia Pty., Ltd.	W	36,525		3,821		6,904		2,124
KOMIPO Australia Pty., Ltd.		45,686		3,825		6,904		1,462
KOWEPO Australia Pty., Ltd.		45,512		2,352		6,904		2,129
KOSPO Australia Pty., Ltd.		38,624		2,353		6,904		159
KEPCO Middle East Holding Company		95,343		83,549		—		(711	)
Qatrana Electric Power Company		466,442		273,561		10,479		9,312
KHNP Canada Energy Ltd.		102,484		546		—		(497	)
KEPCO Bylong Australia Pty., Ltd.		44,489		369,595		—		(16,021	)
Korea Waterbury Uranium Limited Partnership		20,920		191		—		(37	)
KEPCO Holdings de Mexico		150		31		—		(8	)
KST Electric Power Company, S.A.P.I. de C.V.		551,775		419,847		91,392		8,242
KEPCO Energy Service Company		7,548		1,921		7,621		4,817
KEPCO Netherlands S3 B.V.		47,512		119		—		1,688
PT. KOMIPO Pembangkitan Jawa Bali		14,759		4,036		8,944		2,505
PT. Cirebon Power Service		2,114		634		4,001		137
KOWEPO International Corporation		—		10		—		—
KOSPO Jordan LLC		33,263		15,855		4,910		1,531
EWP America Inc. (*1)		42,029		2,409		7,235		3,235
KNF Canada Energy Limited		2,070		29		—		(21	)
EWP Barbados 1 SRL		330,601		1,149		1,397		5,104
Gyeonggi Green Energy Co., Ltd.		253,308		228,120		45,354		(231	)
PT. Tanggamus Electric Power		213,631		171,083		4,263		8,000
Gyeongju Wind Power Co., Ltd.		100,737		65,819		7,726		1,817
KOMIPO America Inc. (*2)		206,799		52,588		—		(1,402	)
KOSEP USA, Inc.		1		5,024		—		—
PT. EWP Indonesia		41,940		1,164		—		3,361
KEPCO Netherlands J3 B.V.		117,292		147		—		(57	)
Korea Offshore Wind Power Co., Ltd.		359,434		191,774		17,198		593
Global One Pioneer B.V.		169		110		—		(62	)
Global Energy Pioneer B.V.		336		108		—		(57	)
Mira Power Limited		393,663		281,687		42,729		25,533
KOSEP Material Co., Ltd.		2,986		932		1,840		170
Commerce and Industry Energy Co., Ltd.		90,009		39,411		16,737		2,302
KEPCO KPS Philippines Corp.		3,260		390		2,287		(42	)
KOSPO Chile SpA		134,135		52,319		—		(1,239	)
PT. KOWEPO Sumsel Operation And Maintenance Services		109		243		—		—
Hee mang sunlight Power Co., Ltd.		6,911		4,097		214		(108	)
Fujeij Wind Power Company		197,000		173,196		—		8,342
KOSPO Youngnam Power Co., Ltd.		384,192		288,584		140,802		946
Chitose Solar Power Plant LLC		124,885		109,185		8,623		1,502
KEPCO Energy Solution Co., Ltd.		314,626		3,339		8,591		1,626
KEPCO Solar Co., Ltd.		223,695		15,526		5,518		823
KOSPO Power Services Ltda.		4,860		1,835		6,400		198
Energy New Industry Specialized Investment Private Investment Trust (*3)		289,296		2,689		—		2,109
KOEN Bylong Pty., Ltd.		8		85		—		—
KOMIPO Bylong Pty., Ltd.		8		85		—		—
KOWEPO Bylong Pty., Ltd.		8		85		—		(18	)
KOSPO Bylong Pty., Ltd.		120		196		—		—
EWP Bylong Pty., Ltd.		6		35		—		—
KOWEPO Lao International		11,513		10		4,132		2,756
KEPCO US Inc.		16,777		—		—		—
KEPCO Alamosa LLC		32,578		327		61		(31	)
KEPCO Solar of Alamosa LLC		57,181		41,582		4,125		419
KEPCO Mangilao Holdings LLC		26,780		30,054		—		(14	)
Mangilao Investment LLC		40,690		28		—		(14	)
KEPCO Mangilao Solar, LLC		137,404		99,791		—		(555	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
June 30, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Jeju Hanlim Offshore Wind Co., Ltd.	W	32,422		8,318		—		(1,630	)
PT. Siborpa Eco Power		10,859		71		—		(78	)
PT. Korea Energy Indonesia		1,846		229		807		56
KOLAT SpA		31,533		641		39		(250	)
KEPCO California, LLC		43,347		6,508		—		(756	)
KEPCO Mojave Holdings, LLC		96,561		69,421		—		(2,113	)
Incheon Fuel Cell Co., Ltd.		259,710		239,374		3,431		(873	)
KOEN Service Co., Ltd.		8,039		7,262		17,325		399
KOMIPO Service Co., Ltd.		4,175		4,948		16,090		249
KOWEPO Service Co., Ltd.		7,062		5,096		15,510		864
KOSPO Service Co., Ltd.		3,822		4,371		10,817		(1,458	)
EWP Service Co., Ltd.		5,332		4,196		12,320		561
PT. KOMIPO Energy Indonesia		1,516		164		7		(855	)
KNF partners Co., Ltd.		1,257		790		2,255		(261	)
KOSPO USA Inc.		273,534		400		—		2,374
Nambu USA LLC		204,511		—		—		260
Tamra Offshore Wind Power Co., Ltd.		148,175		111,029		9,966		2,539
KEPCO MCS Co., Ltd.		73,067		39,099		154,091		11,528
KEPCO FMS Co., Ltd.		14,343		12,857		43,073		(319	)
Firstkeepers Co., Ltd.		16,630		16,976		36,361		(2,092	)
Secutec Co., Ltd.		13,190		10,818		32,558		670
SE Green Energy Co., Ltd.		153,708		120,363		18,191		3,726
KEPCO Mangilao America LLC		1,848		1		—		—
Mangilao Intermediate Holdings LLC		151,619		133,447		—		(3,455	)
KEPCO CSC Co., Ltd.		9,591		5,840		19,665		485
KOAK Power Limited		16,096		1,196		—		(630	)
KOMIPO Europe B.V.		69,932		59		200		(189	)
Haenanum Energy Fund		28,238		196		24		(46	)
Paju Ecoenergy Co., Ltd.		53,746		275		4,817		29
Guam Ukudu Power LLC		16,151		15,431		—		(458	)
TS Energy No. 25 Co., Ltd.		242,219		204,877		52		(4,530	)
KPS Partners Co., Ltd.		2,597		1,544		4,349		68
KEPCO E&C Service Co., Ltd.		4,009		2,337		8,027		707
Moha Solar Co., Ltd.		26,835		27,503		—		(248	)
Ogiri Solar Power Co., Ltd.		1,041		1		—		(1	)
KHNP USA LLC		745		17		485		268
KOMIPO Vanphong Power Service LLC		2,723		369		1,435		585
Energy Innovation Fund I		16,649		2		3		(522	)
KHNP Chile SpA		3,119		—		—		31
Yeong Yang Apollon Photovoltaic Co., Ltd.		1,099		943		—		(6	)
Yeong Yang Corporation Co., Ltd.		1,099		933		—		(5	)
SolarVader Co., Ltd.		1,099		934		—		(5	)
Yeong Yang Innovation Co., Ltd.		1,098		933		—		(5	)
Yeong Yang Horus Photovoltaic Co., Ltd.		1,097		934		—		(5	)
Yeong Yang Solar Management Co., Ltd.		1,099		933		—		(5	)
LSG Hydro Power Limited		1		—		—		—
KOEN Bio Co., Ltd.		449		30		—		(80	)
KOMIPO Iberian Solar Group, S.L.U.		69,925		57,446		—		794
Prime Swedish Holding AB		11,580		11,577		—		—

(*1)	Financial information of EWP America Inc. includes that of three other subsidiaries, EWP Renewable Corporation, California Power Holdings, LLC and EWPRC Biomass Holdings, LLC.

(*2)	Financial information of KOMIPO America Inc. consists of nine other subsidiaries’ financial information, including Elara Equity Holdings, LLC.

(*3)	Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of four other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund and BSK E-New Industry Fund X.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	61,859,753		35,652,467		9,938,941		647,641
Korea South-East Power Co., Ltd.		10,858,645		5,954,129		4,258,904		(139,149	)
Korea Midland Power Co., Ltd.		13,028,436		9,357,603		4,293,364		(29,880	)
Korea Western Power Co., Ltd.		10,357,023		6,594,779		3,605,986		(108,953	)
Korea Southern Power Co., Ltd.		10,658,015		6,411,524		4,015,941		(17,588	)
Korea East-West Power Co., Ltd.		9,619,485		4,974,645		4,155,416		(65,427	)
KEPCO Engineering & Construction Company, Inc.		699,244		200,169		431,723		20,160
KEPCO Plant Service & Engineering Co., Ltd.		1,345,857		296,515		1,299,186		85,916
KEPCO Nuclear Fuel Co., Ltd.		798,368		390,155		331,228		14,542
KEPCO KDN Co., Ltd.		647,496		174,192		641,308		45,207
KEPCO International HongKong Ltd.		120,213		—		—		1,571
KEPCO International Philippines Inc.		133,215		366		—		35,182
KEPCO Gansu International Ltd.		7,753		512		—		(19	)
KEPCO Philippines Holdings Inc.		187,375		127		—		65,792
KEPCO Philippines Corporation		6,173		17		—		(187	)
KEPCO Ilijan Corporation		322,066		47,234		81,400		39,443
KEPCO Lebanon SARL		1,669		9,195		—		(59	)
KEPCO Neimenggu International Ltd.		213,444		2,492		—		26,593
KEPCO Shanxi International Ltd.		508,363		196,408		—		2,278
KOMIPO Global Pte Ltd.		263,378		656		—		12,460
KEPCO Netherlands B.V.		117,449		71		—		14,503
Korea Imouraren Uranium Investment Corp.		13,955		123		—		(675	)
KEPCO Australia Pty., Ltd.		451		17		—		71
KOSEP Australia Pty., Ltd.		34,249		3,500		14,327		2,150
KOMIPO Australia Pty., Ltd.		45,250		3,782		14,327		2,685
KOWEPO Australia Pty., Ltd.		44,270		2,909		14,327		1,663
KOSPO Australia Pty., Ltd.		38,341		2,750		14,327		2,242
KEPCO Middle East Holding Company		90,601		78,553		—		(1,539	)
Qatrana Electric Power Company		464,507		287,859		21,279		24,717
KHNP Canada Energy Ltd.		63,794		26		—		(7	)
KEPCO Bylong Australia Pty., Ltd.		44,691		349,542		—		16,897
Korea Waterbury Uranium Limited Partnership		20,908		165		—		(76	)
KEPCO Holdings de Mexico		148		27		—		(14	)
KST Electric Power Company, S.A.P.I. de C.V.		531,367		410,743		65,695		37,899
KEPCO Energy Service Company		2,255		994		5,880		507
KEPCO Netherlands S3 B.V.		44,042		54		—		2,833
PT. KOMIPO Pembangkitan Jawa Bali		12,946		3,298		20,306		4,775
PT. Cirebon Power Service		1,825		550		8,642		344
KOWEPO International Corporation		—		10		—		—
KOSPO Jordan LLC		31,620		15,654		9,356		1,570
EWP America Inc. (*1)		37,681		2,683		14,312		(14,327	)
KNF Canada Energy Limited		1,871		22		—		(50	)
EWP Barbados 1 SRL		313,409		1,170		2,950		44,729
Gyeonggi Green Energy Co., Ltd.		265,768		240,366		64,660		(9,968	)
PT. Tanggamus Electric Power		217,730		184,057		3,491		11,942
Gyeongju Wind Power Co., Ltd.		105,726		68,629		13,939		2,108
KOMIPO America Inc.		105,926		918		342		(1,783	)
KOSEP USA, Inc.		1		4,837		—		—
PT. EWP Indonesia		33,900		1,125		—		7,083
KEPCO Netherlands J3 B.V.		138,824		84		—		28,242
Korea Offshore Wind Power Co., Ltd.		354,643		187,576		26,838		98
Global One Pioneer B.V.		177		60		—		(76	)
Global Energy Pioneer B.V.		338		64		—		(70	)
Mira Power Limited		348,737		266,565		31,172		(2,960	)
KOSEP Material Co., Ltd.		2,312		429		3,457		189

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Commerce and Industry Energy Co., Ltd.	W	89,681		41,384		31,603		1,623
KEPCO KPS Philippines Corp.		3,119		284		5,151		158
KOSPO Chile SpA		128,795		48,813		—		(542	)
PT. KOWEPO Sumsel Operation And Maintenance Services		108		241		—		(15	)
Hee mang sunlight Power Co., Ltd.		7,261		4,339		423		(142	)
Fujeij Wind Power Company		194,844		174,051		—		13,720
KOSPO Youngnam Power Co., Ltd.		389,071		294,408		254,966		3,405
VI Carbon Professional Private Special Asset Investment Trust 1		3,006		4		—		7
Chitose Solar Power Plant LLC		133,643		118,783		17,073		1,521
KEPCO Energy Solution Co., Ltd.		313,754		4,093		5,585		3,656
KEPCO Solar Co., Ltd.		230,443		23,098		3,933		1,888
KOSPO Power Services Ltda.		4,354		1,644		10,846		1,011
Energy New Industry Specialized Investment Private Investment Trust (*2)		279,489		24,173		23,682		8,248
KOEN Bylong Pty., Ltd.		6		75		—		(11	)
KOMIPO Bylong Pty., Ltd.		7		76		—		(11	)
KOWEPO Bylong Pty., Ltd.		6		64		—		—
KOSPO Bylong Pty., Ltd.		153		213		—		(2	)
EWP Bylong Pty., Ltd.		6		35		—		28
KOWEPO Lao International		8,982		392		8,466		4,706
KEPCO US Inc.		16,154		—		—		(21	)
KEPCO Alamosa LLC		31,353		270		127		(237	)
KEPCO Solar of Alamosa LLC		68,336		42,910		9,096		(2,052	)
KEPCO Mangilao Holdings LLC		25,785		28,924		—		(502	)
Mangilao Investment LLC		38,090		14		—		(15	)
KEPCO Mangilao Solar, LLC		69,830		34,029		—		(253	)
Jeju Hanlim Offshore Wind Co., Ltd.		20,525		9,805		—		(3,049	)
PT. Siborpa Eco Power		10,491		14		—		(361	)
PT. Korea Energy Indonesia		1,746		196		2,428		190
KOLAT SpA		31,109		425		243		(216	)
KEPCO California, LLC		41,973		4,683		—		(1,330	)
KEPCO Mojave Holdings, LLC		95,326		67,138		—		(4,358	)
Incheon Fuel Cell Co., Ltd.		192,184		170,976		—		(979	)
KOEN Service Co., Ltd.		6,239		5,598		32,150		129
KOMIPO Service Co., Ltd.		3,381		3,649		28,596		(479	)
KOWEPO Service Co., Ltd.		6,045		4,849		29,559		726
KOSPO Service Co., Ltd.		5,617		4,708		25,103		832
EWP Service Co., Ltd.		4,568		4,074		23,223		(15	)
PT. KOMIPO Energy Indonesia		2,473		154		2,391		52
KNF Partners Co., Ltd.		1,470		743		5,487		256
KOSPO USA Inc.		120,380		266		—		(1,611	)
Nambu USA LLC		42,739		—		—		544
Tamra Offshore Wind Power Co., Ltd.		150,957		112,184		22,200		4,575
KEPCO MCS Co., Ltd.		59,227		36,786		342,053		19,190
KEPCO FMS Co., Ltd.		14,390		12,585		89,228		837
Firstkeepers Co., Ltd.		13,981		12,234		68,538		2,994
Secutec Co., Ltd.		11,473		9,771		62,256		1,609
SE Green Energy Co., Ltd.		152,205		122,606		19,731		2,463
KEPCO Mangilao America LLC		1,793		—		—		—
Mangilao Intermediate Holdings LLC		100,609		80,210		—		(3,708	)
KEPCO CSC Co., Ltd.		8,817		5,551		38,465		2,479
KOAK Power Limited		15,864		1,118		—		607

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
KOMIPO Europe B.V.	W	43,198		46		333		(386	)
Haenanum Energy Fund		28,219		132		128		(13	)
Paju Ecoenergy Co., Ltd.		57,320		3,506		3,069		247
Guam Ukudu Power LLC		3,165		3,589		—		(1,577	)
TS Energy No. 25 Co., Ltd.		184,667		142,709		—		(3,779	)
KPS Partners Co., Ltd.		2,139		1,127		3,562		313
KEPCO E&C Service Co., Ltd.		2,514		1,549		4,989		464
Moha Solar Co., Ltd.		7,390		7,809		—		(364	)
Ogiri Solar Power Co., Ltd.		1,032		—		—		—
KHNP USA LLC		464		23		229		119
KOMIPO Vanphong Power Service LLC		1,727		12		—		(34	)
Energy Innovation Fund I		8,412		1		25		(201	)

(*1)	Financial information of EWP America Inc. includes that of four other subsidiaries, EWP Renewable Corporation, DG Fairhaven Power, LLC, California Power Holdings, LLC and EWPRC Biomass Holdings, LLC.

(*2)	Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of four other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund and BSK E-New Industry Fund X.

(4)

Significant restrictions on abilities to subsidiaries as of June 30, 2021 are as follows:


Company		Nature and extent of any significant restrictions
Gyeonggi Green Energy Co., Ltd.		Acquisition or disposal of assets of more than W35 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Group.

KOSPO Youngnam Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied, or prior written consent of financial institutions is obtained. Group’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.

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 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.

Korea Offshore Wind Power Co., Ltd.		Principals and interest payments on subordinated loans or dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

(5)

As of June 30, 2021, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:


Company		Nature and extent of any significant restrictions
KOSPO Youngnam Power Co., Ltd.		The Group holds the right to purchase all shares held by the financial investors of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Group, at face value of the issued shares on the 7th and 12th years from the Group’s establishment date.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(6)

Details of non-controlling interests prior to intra-Group eliminations as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won
June 30, 2021
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	296,114			791,101			237,211			926,419			2,250,845
Non-current assets		27,797			590,196			450,128			3,662,997			4,731,118
Current liabilities		(12,293	)		(249,202	)		(178,055	)		(593,330	)		(1,032,880	)
Non-current liabilities		(25,764	)		(54,820	)		(14,681	)		(2,515,739	)		(2,611,004	)
Net assets		285,854			1,077,275			494,603			1,480,347			3,338,079
Book value of non-controlling interests		140,069			527,864			167,770			613,137			1,448,840
Sales		31,369			688,435			155,521			562,824			1,438,149
Profit for the period		8,695			76,317			2,872			80,432			168,316
Profit for the period attributable to non-controlling interests		4,261			37,395			974			12,053			54,683
Cash flows from operating activities		57,384			106,168			32,431			214,848			410,831
Cash flows from investing activities		(380	)		(43,228	)		(33,302	)		(110,402	)		(187,312	)
Cash flows from financing activities before dividends to non-controlling interests		(7,878	)		(28,347	)		(7,806	)		(49,133	)		(93,164	)
Dividends to non-controlling interests		—			(25,269	)		(3,639	)		(1,712	)		(30,620	)
Effect of exchange rate fluctuation		4,682			475			16			4,072			9,245
Net increase (decrease) of cash and cash equivalents		53,808			9,799			(12,300	)		57,673			108,980


In millions of won
December 31, 2020
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	236,602			755,454			235,805			801,813			2,029,674
Non-current assets		85,464			590,403			463,439			3,499,258			4,638,564
Current liabilities		(12,322	)		(254,495	)		(186,296	)		(414,673	)		(867,786	)
Non-current liabilities		(34,912	)		(42,020	)		(13,873	)		(2,511,848	)		(2,602,653	)
Net assets		274,832			1,049,342			499,075			1,374,550			3,197,799
Book value of non-controlling interests		134,668			514,177			169,286			552,035			1,370,166
Sales		81,400			1,299,186			431,723			956,692			2,769,001
Profit for the period		39,443			85,916			20,160			107,661			253,180
Profit for the period attributable to non-controlling interests		19,327			42,099			6,838			32,858			101,122
Cash flows from operating activities		121,835			74,159			15,225			240,987			452,206
Cash flows from investing activities		7,561			26,748			(34,333	)		(661,820	)		(661,844	)
Cash flows from financing activities before dividends to non-controlling interests		(31,793	)		(47,809	)		(9,165	)		371,448			282,681
Dividends to non-controlling interests		(30,319	)		(42,336	)		(4,000	)		(4,643	)		(81,298	)
Effect of exchange rate fluctuation		(8,153	)		(2,171	)		(22	)		(7,893	)		(18,239	)
Net increase (decrease) of cash and cash equivalents		59,131			8,591			(32,295	)		(61,921	)		(26,494	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(7)

Changes in goodwill

(i)

Details of goodwill as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Acquisition cost	W	99,816		98,166
Less: Accumulated impairment		—		—

Carrying book value	W	99,816		98,166

(ii)

Changes in goodwill for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning		Increase		Decrease		Ending
Acquisition cost	W	98,166		1,650		—		99,816
Less: Accumulated impairment		—		—		—		—

Carrying book value		98,166		1,650		—		99,816


In millions of won	December 31, 2020
	Beginning		Increase		Decrease		Ending
Acquisition cost	W	97,977		189		—		98,166
Less: Accumulated impairment		—		—		—		—

Carrying book value		97,977		189		—		98,166

(8)

Disposals of subsidiaries

The Group has completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1 and has disposed of shares of DG Fairhaven Power, LLC during the six-month period ended June 30, 2021. The Group had completed the liquidation process of EWP Philippines Corporation and had disposed of shares of DG Whitefield, LLC and Springfield Power, LLC during the year ended December 31, 2020.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures

(1)

Investments in associates and joint ventures as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
June 30, 2021
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation (*1)	Importing and wholesaling LNG		KOREA		20.47	%	W	94,500		1,759,471
Gemeng International Energy Co., Ltd.	Power generation		CHINA		34.00	%		413,153		716,288
PT. Bayan Resources TBK	Resources development		INDONESIA		20.00	%		615,860		461,644
Korea Power Exchange (*2)	Management of power marketand others		KOREA		100.00	%		127,839		270,802
GS Donghae Electric Power Co., Ltd.	Power generation		KOREA		34.00	%		204,000		253,294
PT. Cirebon Electric Power	Power generation		INDONESIA		27.50	%		40,365		121,814
Hyundai Green Power Co., Ltd.	Operation of utility plant		KOREA		29.00	%		88,885		121,657
S-Power Co., Ltd.	Power generation		KOREA		49.00	%		132,300		114,989
Indeck Niles Development, LLC (*3, 5)	Power generation		USA		59.66	%		203,685		180,722
Dongducheon Dream Power Co., Ltd. (*4)	Power generation		KOREA		33.61	%		148,105		74,073
Shin Pyeongtaek Power Co., Ltd.	Power generation		KOREA		40.00	%		72,000		76,872
SPC Power Corporation	Power generation		PHILIPPINES		38.00	%		20,635		66,316
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation		LAOS		25.00	%		87,426		71,749
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation ofutility plant		NEPAL		69.06	%		70,228		63,838
Korea Electric Power Corporation Fund (*6)	Developing electric enterprises		KOREA		98.09	%		48,410		43,757
YTN Co., Ltd.	Broadcasting		KOREA		21.43	%		59,000		40,892
PT Wampu Electric Power	Power generation		INDONESIA		46.00	%		21,292		31,640
Others (Daeryun Power Co., Ltd. and 67 others)								228,257		184,331

							W	2,675,940		4,654,149


<Joint ventures>
Jamaica Public Service Company Limited	Power generation		JAMAICA		40.00	%	W	301,910		277,900
KEPCO SPC Power Corporation (*7)	Construction and operation ofutility plant		PHILIPPINES		75.20	%		94,579		197,610
Datang Chifeng Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		121,928		208,493
Amman Asia Electric Power Company (*7)	Power generation		JORDAN		60.00	%		111,476		183,953
Rabigh Electricity Company	Power generation		SAUDI ARABIA		40.00	%		109,743		126,270
PT Barito Wahana Tenaga	Power generation		INDONESIA		30.61	%		59,431		68,382
Kelar S.A. (*7)	Power generation		CHILE		65.00	%		78,060		79,642
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,948		74,132
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,891		54,360
Solar Philippines Calatagan Corporation	Power generation		PHILIPPINES		38.00	%		47,903		51,662
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		39,872		43,471
OneEnergy Asia Limited	Power generation		VIETNAM		40.00	%		75,874		77,222
PT. Tanjung Power Indonesia	Power generation		INDONESIA		35.00	%		26,892		41,295
South Jamaica Power Company Limited	Power generation		JAMAICA		20.00	%		20,521		36,573
Chile Solar JV SpA	Power generation		CHILE		50.00	%		37,689		35,790
Shuweihat Asia Power Investment B.V.	Holding company		NETHERLAND		49.00	%		44,405		29,502
Others (Chun-cheon Energy Co., Ltd. and 73 others)								772,933		542,115

								2,014,055		2,128,372

							W	4,689,995		6,782,521

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of June 30, 2021 and December 31, 2020 are as follows, continued:

(*1)	The effective percentage of ownership is 22.02% considering treasury stocks.

(*2)

The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

(*3)	Under the shareholder agreement, 50% of the investment is committed by March 2022.

(*4)	The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*5)	The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate.

(*6)	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. For this reason, the entity is classified as an associate.

(*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. For this reason, the entities are classified as joint ventures.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation (*1)	Importing and wholesaling LNG		KOREA		20.47	%	W	94,500		1,647,325
Gemeng International Energy Co., Ltd.	Power generation		CHINA		34.00	%		413,153		679,708
PT. Bayan Resources TBK	Resources development		INDONESIA		20.00	%		615,860		425,234
Korea Power Exchange (*2)	Management of power marketand others		KOREA		100.00	%		127,839		269,122
GS Donghae Electric Power Co., Ltd.	Power generation		KOREA		34.00	%		204,000		244,426
PT. Cirebon Electric Power	Power generation		INDONESIA		27.50	%		40,365		117,811
Hyundai Green Power Co., Ltd.	Power generation		KOREA		29.00	%		88,885		132,774
S-Power Co., Ltd.	Power generation		KOREA		49.00	%		132,300		110,292
Indeck Niles Development, LLC (*3)	Power generation		USA		24.08	%		45,562		20,627
Dongducheon Dream Power Co., Ltd. (*4)	Power generation		KOREA		33.61	%		148,105		80,637
Shin Pyeongtaek Power Co., Ltd.	Power generation		KOREA		40.00	%		72,000		69,591
SPC Power Corporation	Power generation		PHILIPPINES		38.00	%		20,635		69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation		LAOS		25.00	%		87,426		64,570
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation ofutility plant		NEPAL		60.35	%		50,268		42,677
Korea Electric Power Corporation Fund (*6)	Developing electric enterprises		KOREA		98.09	%		51,500		41,926
YTN Co., Ltd.	Broadcasting		KOREA		21.43	%		59,000		40,549
PT Wampu Electric Power	Power generation		INDONESIA		46.00	%		21,292		27,865
Others (Daeryun Power Co., Ltd. and 60 others)								209,071		165,741

							W	2,481,761		4,250,787


<Joint ventures>
Jamaica Public Service Company Limited	Power generation		JAMAICA		40.00	%	W	301,910		266,221
KEPCO SPC Power Corporation (*7)	Construction and operation ofutility plant		PHILIPPINES		75.20	%		94,579		201,663
Datang Chifeng Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		121,928		188,478
Amman Asia Electric Power Company (*7)	Power generation		JORDAN		60.00	%		111,476		161,253
Rabigh Electricity Company	Power generation		SAUDI ARABIA		40.00	%		109,743		97,157
PT Barito Wahana Tenaga	Power generation		INDONESIA		30.61	%		59,395		63,029
Kelar S.A. (*7)	Power generation		CHILE		65.00	%		78,060		71,449
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,948		68,809
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,891		49,639
Solar Philippines Calatagan Corporation	Power generation		PHILIPPINES		38.00	%		47,903		49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		39,872		42,530
OneEnergy Asia Limited	Power generation		VIETNAM		40.00	%		56,654		56,654
PT. Tanjung Power Indonesia	Power generation		INDONESIA		35.00	%		26,892		33,063
South Jamaica Power Company Limited	Power generation		JAMAICA		20.00	%		20,521		31,897
Chile Solar JV SpA	Power generation		CHILE		50.00	%		37,689		34,883
Shuweihat Asia Power Investment B.V.	Holding company		NETHERLAND		49.00	%		44,405		13,264
Others (Daegu Green Power Co., Ltd. and 66 others)								721,526		490,740

								1,943,392		1,919,746

							W	4,425,153		6,170,533

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of June 30, 2021 and December 31, 2020 are as follows, continued:

(*1)	The effective percentage of ownership is 22.02% considering treasury stocks.

(*2)

(*3)	Under the shareholder agreement, 50% of the investment is committed by March 2022.

(*4)	The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*5)	The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate.

(*6)	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. For this reason, the entity is classified as an associate.

(*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. For this reason, the entities are classified as joint ventures.

(2)

The fair value of associates which are actively traded on an open market and have a readily available market value as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
Investees	June 30, 2021		December 31, 2020

<Associates>
Korea Electric Power Industrial Development Co., Ltd.	W	119,120		45,048
Korea Gas Corporation		697,410		584,010
YTN Co., Ltd.		35,685		27,000
SPC Power Corporation		182,397		139,698
PT. Bayan Resources TBK		707,200		798,510

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(3)

Changes in investments in associates and joint ventures for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won
June 30, 2021
Investees	Beginning balance		Acquisition		Disposals			Dividends received			Share of income (loss)			Other comprehensive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,647,325		—		—			—			100,582			10,671			893			1,759,471
Gemeng International Energy Co., Ltd.		679,711		—		—			—			(10,905	)		47,482			—			716,288
PT. Bayan Resources TBK		425,231		—		—			(67,064	)		77,418			26,078			(19	)		461,644
Korea Power Exchange		269,122		—		—			—			1,800			—			(120	)		270,802
GS Donghae Electric Power Co., Ltd.		244,426		—		—			—			8,868			—			—			253,294
PT. Cirebon Electric Power		117,811		—		—			(8,607	)		7,381			687			4,542			121,814
Hyundai Green Power Co., Ltd.		132,774		—		—			(8,889	)		(882	)		(1,346	)		—			121,657
S-Power Co., Ltd.		110,292		—		—			—			4,697			—			—			114,989
Indeck Niles Development, LLC		20,627		158,123		—			—			(3,853	)		3,299			2,526			180,722
Dongducheon Dream Power Co., Ltd.		80,637		—		—			—			(6,564	)		—			—			74,073
Shin Pyeongtaek Power Co., Ltd.		69,591		—		—			—			7,275			—			6			76,872
SPC Power Corporation		69,912		—		—			(13,177	)		2,171			7,410			—			66,316
Xe-Pian Xe-Namnoy Power Co., Ltd.		64,570		—		—			—			3,625			3,554			—			71,749
Nepal Water & Energy Development Company Private Limited		42,677		19,960		—			—			(296	)		1,497			—			63,838
Korea Electric Power Corporation Fund		41,926		—		(3,090	)		—			(695	)		5,616			—			43,757
YTN Co., Ltd.		40,549		—		—			(270	)		609			14			(10	)		40,892
PT Wampu Electric Power		27,865		—		—			—			2,124			546			1,105			31,640
Others (Daeryun Power Co., Ltd. and 69 others)		165,741		18,801		(10	)		(4,786	)		3,703			6,221			(5,339	)		184,331

	W	4,250,787		196,884		(3,100	)		(102,793	)		197,058			111,729			3,584			4,654,149


<Joint ventures>
Jamaica Public Service Company Limited	W	266,221		—		—			—			1,387			10,292			—			277,900
KEPCO SPC Power Corporation		201,663		—		—			(24,044	)		20,613			(622	)		—			197,610
Datang Chifeng Renewable Power Co., Ltd.		188,478		—		—			—			10,988			9,027			—			208,493
Amman Asia Electric Power Company		161,253		—		—			—			8,993			13,707			—			183,953
Rabigh Electricity Company		97,156		—		—			—			13,013			16,101			—			126,270
PT Barito Wahana Tenaga		63,029		36		—			—			(306	)		5,623			—			68,382
Kelar S.A.		71,449		—		—			—			4,331			1,045			2,817			79,642
RE Holiday Holdings LLC		68,809		—		—			(793	)		1,931			4,185			—			74,132
RE Pioneer Holdings LLC		49,639		—		—			(620	)		1,981			3,360			—			54,360
Solar Philippines Calatagan Corporation		49,017		—		—			—			2,107			538			—			51,662
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		42,530		—		—			(2,884	)		1,862			1,963			—			43,471
OneEnergy Asia Limited		56,654		19,220		—			—			(69	)		1,417			—			77,222
PT. Tanjung Power Indonesia		33,063		—		—			—			3,578			4,898			(244	)		41,295
South Jamaica Power Company Limited		31,899		—		—			—			3,407			1,269			(2	)		36,573
Chile Solar JV SpA		34,883		—		—			—			446			461			—			35,790
Shuweihat Asia Power Investment B.V.		13,264		—		—			(1,753	)		2,885			15,106			—			29,502
Others (Chun-cheon Energy Co., Ltd. and 73 others)		490,739		51,669		(262	)		(9,865	)		2,616			10,155			(2,937	)		542,115

		1,919,746		70,925		(262	)		(39,959	)		79,763			98,525			(366	)		2,128,372

	W	6,170,533		267,809		(3,362	)		(142,752	)		276,821			210,254			3,218			6,782,521

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(3)

Changes in investments in associates and joint ventures for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Investees	Beginning balance		Acquisition		Disposals			Dividends received			Share of income (loss)			Other comprehensive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,693,967		—		—			(7,182	)		(14,104	)		(25,023	)		(333	)		1,647,325
Gemeng International Energy Co., Ltd.		670,896		—		—			(11,620	)		15,965			4,468			(1	)		679,708
PT. Bayan Resources TBK		445,141		—		—			(15,720	)		17,139			(21,256	)		(70	)		425,234
Korea Power Exchange		258,899		—		—			—			1,860			1			8,362			269,122
GS Donghae Electric Power Co., Ltd.		255,983		—		—			(25,796	)		14,265			—			(26	)		244,426
PT. Cirebon Electric Power		123,425		—		—			(9,782	)		11,330			434			(7,596	)		117,811
Hyundai Green Power Co., Ltd.		124,253		—		—			(8,889	)		17,410			—			—			132,774
S-Power Co., Ltd.		115,784		—		—			—			(5,429	)		—			(63	)		110,292
Indeck Niles Development, LLC		—		45,562		—			—			(13,344	)		(9,846	)		(1,745	)		20,627
Dongducheon Dream Power Co., Ltd.		76,547		—		—			—			4,095			—			(5	)		80,637
Shin Pyeongtaek Power Co., Ltd.		66,956		—		—			—			11,877			(3,604	)		(5,638	)		69,591
SPC Power Corporation		63,583		—		—			(10,764	)		5,491			11,649			(47	)		69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.		72,935		—		—			—			(2,896	)		(5,469	)		—			64,570
Nepal Water & Energy Development Company Private Limited		31,145		14,697		—			—			(1,699	)		(1,466	)		—			42,677
Korea Electric Power Corporation Fund		41,126		—		—			—			(908	)		1,708			—			41,926
YTN Co., Ltd.		39,747		—		—			(90	)		1,086			(6	)		(188	)		40,549
PT Wampu Electric Power		29,355		—		—			(1,303	)		3,245			(1,639	)		(1,793	)		27,865
Others (Daeryun Power Co., Ltd. and 67 others)		142,060		35,996		(207	)		(7,029	)		(6,291	)		1,138			74			165,741

	W	4,251,802		96,255		(207	)		(98,175	)		59,092			(48,911	)		(9,069	)		4,250,787


<Joint ventures>
Jamaica Public Service Company Limited	W	253,607		—		—			(4,352	)		24,669			(10,891	)		3,188			266,221
KEPCO SPC Power Corporation		214,794		—		—			(48,486	)		48,479			(12,995	)		(129	)		201,663
Datang Chifeng Renewable Power Co., Ltd.		185,307		—		—			(13,453	)		15,317			1,307			—			188,478
Amman Asia Electric Power Company		192,164		—		—			(28,281	)		20,165			(22,795	)		—			161,253
Rabigh Electricity Company		109,096		—		—			(14,956	)		25,474			(22,458	)		1			97,157
PT Barito Wahana Tenaga		—		59,395		—			—			4,923			(1,289	)		—			63,029
Kelar S.A.		70,462		—		—			—			14,864			(9,186	)		(4,691	)		71,449
RE Holiday Holdings LLC		42,070		—		—			—			33,072			(6,333	)		—			68,809
RE Pioneer Holdings LLC		31,156		—		—			(1,246	)		24,466			(4,737	)		—			49,639
Solar Philippines Calatagan Corporation		48,930		—		—			(6,439	)		6,745			(219	)		—			49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		41,024		—		—			—			1,231			275			—			42,530
OneEnergy Asia Limited		—		56,654		—			—			—			—			—			56,654
PT. Tanjung Power Indonesia		34,327		—		—			—			7,522			(9,220	)		434			33,063
South Jamaica Power Company Limited		13,863		—		—			—			20,468			(2,432	)		(2	)		31,897
Chile Solar JV SpA		34,859		—		—			—			187			(163	)		—			34,883
Shuweihat Asia Power Investment B.V.		18,318		—		—			(4,337	)		5,919			(6,636	)		—			13,264
Others (Daegu Green Power Co., Ltd. and 66 others		373,052		173,019		—			(17,969	)		(33,469	)		(5,605	)		1,712			490,740

		1,663,029		289,068		—			(139,519	)		220,032			(113,377	)		513			1,919,746

	W	5,914,831		385,323		(207	)		(237,694	)		279,124			(162,288	)		(8,556	)		6,170,533

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(4)

Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won
June 30, 2021
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)	W	35,492,648		27,245,508		12,552,350		456,774
Gemeng International Energy Co., Ltd.		7,727,173		5,620,445		1,089,443		19,031
PT. Bayan Resources TBK		1,727,574		694,818		1,144,185		376,729
Korea Power Exchange		330,366		59,564		51,966		2,303
GS Donghae Electric Power Co., Ltd.		2,128,934		1,383,951		348,527		26,082
PT. Cirebon Electric Power		728,640		285,679		141,715		27,940
Hyundai Green Power Co., Ltd.		824,387		404,879		49,352		(2,385	)
S-Power Co., Ltd.		789,078		551,436		274,104		9,312
Indeck Niles Development, LLC		897,340		701,072		—		(5,028	)
Dongducheon Dream Power Co., Ltd.		1,357,575		1,098,689		296,896		(16,523	)
Shin Pyeongtaek Power Co., Ltd.		1,009,333		785,607		261,740		17,452
SPC Power Corporation		246,943		20,807		26,001		18,416
Xe-Pian Xe-Namnoy Power Co., Ltd.		1,175,616		884,324		68,360		14,362
Nepal Water & Energy Development Company Private Limited		113,454		22,427		1		(181	)
Korea Electric Power Corporation Fund		44,731		125		5		(416	)
YTN Co., Ltd.		295,235		104,406		60,375		2,146
PT Wampu Electric Power		200,756		131,972		9,556		4,768

<Joint ventures>
Jamaica Public Service Company Limited		2,080,033		1,414,944		514,602		19,281
KEPCO SPC Power Corporation		282,232		19,453		82,875		27,609
Datang Chifeng Renewable Power Co., Ltd.		782,624		261,392		74,526		28,018
Amman Asia Electric Power Company		745,408		438,820		7,321		14,992
Rabigh Electricity Company		2,356,712		1,893,922		145,357		28,236
PT Barito Wahana Tenaga		223,382		—		—		10,559
Kelar S.A.		625,587		507,068		44,375		7,030
RE Holiday Holdings LLC		320,311		172,047		3,319		2,048
RE Pioneer Holdings LLC		238,656		129,935		3,047		2,070
Solar Philippines Calatagan Corporation		100,343		42,534		9,515		5,605
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		191,937		83,259		16,059		4,655
OneEnergy Asia Limited		129,427		153		—		(174	)
PT. Tanjung Power Indonesia		684,562		566,576		42,464		10,369
South Jamaica Power Company Limited		447,822		264,948		107,745		10,364
Chile Solar JV SpA		75,076		3,495		1,749		639
Shuweihat Asia Power Investment B.V.		60,208		—		—		14,948

(*)	The profit for the six-month period ended June 30, 2021 is reduced by the associate entity’s net income attributable to non-controlling interests.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(4)

Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)	W	35,909,775		28,174,619		20,833,722		(172,060	)
Gemeng International Energy Co., Ltd.		7,427,157		5,428,013		1,955,707		64,077
PT. Bayan Resources TBK		1,544,875		795,131		1,646,390		219,406
Korea Power Exchange		337,577		68,455		104,698		979
GS Donghae Electric Power Co., Ltd.		2,174,835		1,455,935		685,579		41,955
PT. Cirebon Electric Power		730,020		301,615		246,014		40,676
Hyundai Green Power Co., Ltd.		874,574		416,732		390,442		55,591
S-Power Co., Ltd.		782,561		554,393		421,519		(10,805	)
Indeck Niles Development, LLC		772,124		738,826		—		(29,392	)
Dongducheon Dream Power Co., Ltd.		1,374,640		1,095,926		524,890		10,982
Shin Pyeongtaek Power Co., Ltd.		1,020,650		814,369		520,468		32,002
SPC Power Corporation		255,462		17,705		47,091		39,677
Xe-Pian Xe-Namnoy Power Co., Ltd.		1,138,994		876,336		140,069		(11,318	)
Nepal Water & Energy Development Company Private Limited		109,321		41,093		—		(444	)
Korea Electric Power Corporation Fund		42,988		249		82		(730	)
YTN Co., Ltd.		295,151		105,923		126,730		7,095
PT Wampu Electric Power		199,841		139,264		20,265		7,372

<Joint ventures>
Jamaica Public Service Company Limited		1,664,412		1,027,418		1,042,422		35,916
KEPCO SPC Power Corporation		289,271		21,102		184,481		66,311
Datang Chifeng Renewable Power Co., Ltd.		747,990		276,796		119,955		39,439
Amman Asia Electric Power Company		725,101		456,346		20,586		33,608
Rabigh Electricity Company		2,294,880		1,898,701		293,722		94,927
PT Barito Wahana Tenaga		205,894		—		—		28,631
Kelar S.A.		598,901		492,838		93,375		16,863
RE Holiday Holdings LLC		320,908		183,290		19,659		13,247
RE Pioneer Holdings LLC		236,565		137,287		12,410		8,821
Solar Philippines Calatagan Corporation		97,947		47,098		23,182		15,249
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		182,342		76,018		26,378		2,914
OneEnergy Asia Limited		78,005		150		—		(578	)
PT. Tanjung Power Indonesia		645,152		550,687		90,255		20,487
South Jamaica Power Company Limited		405,804		246,310		209,596		12,208
Chile Solar JV SpA		74,776		5,011		4,390		1,476
Shuweihat Asia Power Investment B.V.		27,073		4		—		12,080

(*)	The loss for the year ended December 31, 2020 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
June 30, 2021
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation (*)	W	8,247,140		22.02	%		1,816,020		—		—			(56,549	)		1,759,471
Gemeng International Energy Co., Ltd.		2,106,728		34.00	%		716,288		—		—			—			716,288
PT. Bayan Resources TBK		1,032,756		20.00	%		206,551		331,472		—			(76,379	)		461,644
Korea Power Exchange		270,802		100.00	%		270,802		—		—			—			270,802
GS Donghae Electric Power Co., Ltd.		744,982		34.00	%		253,294		—		—			—			253,294
PT. Cirebon Electric Power		442,961		27.50	%		121,814		—		—			—			121,814
Hyundai Green Power Co., Ltd.		419,508		29.00	%		121,657		—		—			—			121,657
S-Power Co., Ltd.		237,643		49.00	%		116,445		—		(1,456	)		—			114,989
Indeck Niles Development, LLC		196,268		59.66	%		117,095		63,627		—			—			180,722
Dongducheon Dream Power Co., Ltd.		258,884		34.01	%		88,047		1,757		(3,149	)		(12,582	)		74,073
Shin Pyeongtaek Power Co., Ltd.		223,726		40.00	%		89,491		3,559		(16,178	)		—			76,872
SPC Power Corporation		226,136		38.00	%		85,932		—		—			(19,616	)		66,316
Xe-Pian Xe-Namnoy Power Co., Ltd.		291,293		25.00	%		72,823		305		(1,090	)		(289	)		71,749
Nepal Water & Energy Development Company Private Limited		91,027		69.06	%		62,867		971		—			—			63,838
Korea Electric Power Corporation Fund		44,606		98.09	%		43,754		—		—			3			43,757
YTN Co., Ltd.		190,829		21.43	%		40,892		—		—			—			40,892
PT Wampu Electric Power		68,784		46.00	%		31,640		—		—			—			31,640

<Joint ventures>
Jamaica Public Service Company Limited		665,090		40.00	%		266,035		29,357		—			(17,492	)		277,900
KEPCO SPC Power Corporation		262,779		75.20	%		197,610		—		—			—			197,610
Datang Chifeng Renewable Power Co., Ltd.		521,232		40.00	%		208,493		—		—			—			208,493
Amman Asia Electric Power Company		306,588		60.00	%		183,953		—		—			—			183,953
Rabigh Electricity Company		462,790		40.00	%		185,116		—		(58,041	)		(805	)		126,270
PT Barito Wahana Tenaga		223,382		30.61	%		68,382		—		—			—			68,382
Kelar S.A.		118,518		65.00	%		77,037		2,605		—			—			79,642
RE Holiday Holdings LLC		148,265		50.00	%		74,132		—		—			—			74,132
RE Pioneer Holdings LLC		108,720		50.00	%		54,360		—		—			—			54,360
Solar Philippines Calatagan Corporation		57,810		38.00	%		21,967		29,695		—			—			51,662
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		108,678		40.00	%		43,471		—		—			—			43,471
OneEnergy Asia Limited		129,274		40.00	%		51,710		25,512		—			—			77,222
PT. Tanjung Power Indonesia		117,986		35.00	%		41,295		—		—			—			41,295
South Jamaica Power Company Limited		182,875		20.00	%		36,575		—		—			(2	)		36,573
Chile Solar JV SpA		71,581		50.00	%		35,790		—		—			—			35,790
Shuweihat Asia Power Investment B.V.		60,208		49.00	%		29,502		—		—			—			29,502

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won
December 31, 2020
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation (*)	W	7,735,156		22.02	%		1,703,281		—		—			(55,956	)		1,647,325
Gemeng International Energy Co., Ltd.		1,999,144		34.00	%		679,709		—		—			(1	)		679,708
PT. Bayan Resources TBK		749,744		20.00	%		149,949		351,662		—			(76,377	)		425,234
Korea Power Exchange		269,122		100.00	%		269,122		—		—			—			269,122
GS Donghae Electric Power Co., Ltd.		718,900		34.00	%		244,426		—		—			—			244,426
PT. Cirebon Electric Power		428,405		27.50	%		117,811		—		—			—			117,811
Hyundai Green Power Co., Ltd.		457,842		29.00	%		132,774		—		—			—			132,774
S-Power Co., Ltd.		228,168		49.00	%		111,802		—		(1,510	)		—			110,292
Indeck Niles Development, LLC		33,298		24.08	%		8,017		12,610		—			—			20,627
Dongducheon Dream Power Co., Ltd.		278,714		34.01	%		94,791		1,757		(3,329	)		(12,582	)		80,637
Shin Pyeongtaek Power Co., Ltd.		206,281		40.00	%		82,512		3,559		(16,480	)		—			69,591
SPC Power Corporation		237,757		38.00	%		90,348		—		—			(20,436	)		69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.		262,658		25.00	%		65,665		305		(1,110	)		(290	)		64,570
Nepal Water & Energy Development Company Private Limited		68,228		58.59	%		39,975		971		—			1,731			42,677
Korea Electric Power Corporation Fund		42,739		98.09	%		41,923		—		—			3			41,926
YTN Co., Ltd.		189,228		21.43	%		40,549		—		—			—			40,549
PT Wampu Electric Power		60,577		46.00	%		27,865		—		—			—			27,865

<Joint ventures>
Jamaica Public Service Company Limited		636,994		40.00	%		254,798		29,357		—			(17,934	)		266,221
KEPCO SPC Power Corporation		268,169		75.20	%		201,663		—		—			—			201,663
Datang Chifeng Renewable Power Co., Ltd.		471,194		40.00	%		188,478		—		—			—			188,478
Amman Asia Electric Power Company		268,755		60.00	%		161,253		—		—			—			161,253
Rabigh Electricity Company		396,179		40.00	%		158,472		—		(60,511	)		(804	)		97,157
PT Barito Wahana Tenaga		205,894		30.61	%		63,029		—		—			—			63,029
Kelar S.A.		106,063		65.00	%		68,941		2,508		—			—			71,449
RE Holiday Holdings LLC		137,618		50.00	%		68,809		—		—			—			68,809
RE Pioneer Holdings LLC		99,278		50.00	%		49,639		—		—			—			49,639
Solar Philippines Calatagan Corporation		50,849		38.00	%		19,323		29,694		—			—			49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		106,324		40.00	%		42,530		—		—			—			42,530
OneEnergy Asia Limited		77,855		40.00	%		31,142		25,512		—			—			56,654
PT. Tanjung Power Indonesia		94,465		35.00	%		33,063		—		—			—			33,063
South Jamaica Power Company Limited		159,494		20.00	%		31,899		—		—			(2	)		31,897
Chile Solar JV SpA		69,765		50.00	%		34,883		—		—			—			34,883
Shuweihat Asia Power Investment B.V.		27,069		49.00	%		13,264		—		—			—			13,264

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(6)

As of June 30, 2021 and December 31, 2020, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:


In millions of won	June 30, 2021					December 31, 2020
	Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
Hadong Mineral Fiber Co., Ltd.	W	—			—		—			2
Eurasia Energy Holdings		6			181		(10	)		175
Gunsan Bio Energy Co., Ltd.		174			3,756		290			3,582
Daehan Wind Power PSC		(3,855	)		—		3,855			3,855
DAYONE Energy Co., Ltd.		(596	)		24,100		(14,035	)		24,696
Nghi Son 2 Power LLC		(69,115	)		64,165		30,456			133,280
Samcheok Eco Materials Co., Ltd.		225			1,010		(3	)		785
Naepo Green Energy Co., Ltd.		1,923			4,201		(7,003	)		2,278
Barakah One Company		(3,703	)		65,635		(46,758	)		69,338
Pioneer Gas Power Limited		9,218			25,156		15,824			15,938
Incheon New Power Co., Ltd.		68			262		194			194
Bigeum Resident Photovoltaic Power Co., Ltd.		79			195		116			116
KAPES, Inc.		199			3,397		3,198			3,198

(7)

As of June 30, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

(i)

Gemeng International Energy Co., Ltd.

Gemeng International Energy Co., Ltd. issued put options on 8% of its shares to its financial investors, KEPCO Woori Sprott PEF (NPS Co-Pa PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Group provided a performance guarantee on this agreement.

(ii)

Taebaek Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

(iii)

Pyeongchang Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation. The Group is under agreement of O&M with the entity. Pursuant to the agreement, the Group guarantees a certain level of utilization rate and it is obligated to pay the penalty in the event of suspension in power generating.

(iv)

Daeryun Power Co., Ltd.

The Group reserves the right to participate in the transfer of shares in Daeryun Power Co., Ltd. on the same terms as Daeryun E&S Co., Ltd., if Daeryun E&S Co., Ltd. wishes to transfer its shares in Daeryun Power Co., Ltd.

(v)

Jeongam Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Jeongam Wind Power Co., Ltd. after the construction of the power plant has been completed, the Group is obligated to acquire those shares at fair value.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(7)

As of June 30, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(vi)

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. 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.

(vii)

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.

(viii)

Chester Solar I SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

(ix)

Chester Solar IV SpA

(x)

Chester Solar V SpA

(xi)

Diego de Almagro Solar SpA

(xii)

Laurel SpA

(xiii)

Samcheok Eco Materials Co., Ltd.

For Samcheok Eco Materials Co., Ltd., ordinary shareholders have the right to buy the shares of preferred shareholders if preferred shareholders intend to sell their preferred stock until December 26, 2023, and ordinary shareholders shall guarantee the investment principle of preferred shareholders.

(xiv)

Hyundai Green Power Co., Ltd.

As of June 30, 2021, the Group has call option against the financial investors (Korea Development Bank and others) and also has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when claimed by the financial investors at certain period of time in the future. Also, at certain period of time in the future, the Group has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Group”), the operating investor of Hyundai Green Power Co., Ltd., according to the conditions of the agreement and also has an obligation to sell its shares upon request from Hyundai Steel Group.

(xv)

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.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of June 30, 2021 are as follows:


Company		Nature and extent of any significant restrictions

Daegu Green Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.

Pyeongchang Wind Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior consent of the stakeholders.

Daeryun Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions. Shares cannot be wholly or partially transferred without prior consent of the majority of major stakeholders.

KNH Solar Co., Ltd.		Principals and interests on subordinated loans or dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without the consent of other shareholders.

Jeongam Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied and reimbursement to the lender can be restricted depending on the priority of the loans. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Korea Power Engineering Service Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the board of directors.

Daehan Wind Power PSC		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Daejung Offshore Wind Power Co., Ltd.		Before the commencement of the operation, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Naepo Green Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Solaseado Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Samcheok Eco Materials Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

KPGE Inc.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Taebaek Guinemi Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

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

Indeck Niles Development, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar IV SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar V SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Diego de Almagro Solar Spa		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Laurel SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar I SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Kelar S.A.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

GS Donghae Electric Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Busan Shinho Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Honam Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied.

Seokmun Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

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 collateralized debt is fully repaid.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of June 30, 2021 are as follows, continued:


Company		Nature and extent of any significant restrictions

Yeonggwangbaeksu Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

Yeonggwang Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Jamaica Public Service Company Limited		Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

PT. Tanjung Power Indonesia		Dividends can only be paid when all conditions of the loan agreement are satisfied.

DE Energia SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Daesan Green Energy Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Taebaek Gadeoksan Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when prior written consent of financial institutions is obtained.

Bitsolar Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Omisan Wind Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, reimbursement to the lender can be restricted depending on the priority of the loans. Shares cannot be wholly or partially transferred without written consent of financial institutions.

Yangyang Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Busan Industrial Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

KOSTURE Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

18.

Property, Plant and Equipment

(1)

Property, plant and equipment as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	14,009,153		(23,474	)		—			(27,166	)		13,958,513
Buildings		22,529,017		(54,683	)		(9,581,299	)		(7,073	)		12,885,962
Structures		76,078,162		(174,726	)		(28,999,095	)		(13,205	)		46,891,136
Machinery		97,132,855		(149,053	)		(46,377,512	)		(515,041	)		50,091,249
Ships		2,042		—			(1,847	)		—			195
Vehicles		354,354		(651	)		(264,820	)		(117	)		88,766
Equipment		1,939,789		(191	)		(1,557,936	)		(42	)		381,620
Tools		1,215,090		(161	)		(1,040,888	)		(38	)		174,003
Construction-in- progress		32,161,519		(100,021	)		—			(157,530	)		31,903,968
Right-of-use assets		7,925,435		—			(3,630,352	)		—			4,295,083
Asset retirement costs		12,317,726		—			(5,026,219	)		(146,423	)		7,145,084
Others		14,381,238		—			(11,660,578	)		—			2,720,660

	W	280,046,380		(502,960	)		(108,140,546	)		(866,635	)		170,536,239


In millions of won	December 31, 2020
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	13,970,098		(23,475	)		—			(26,772	)		13,919,851
Buildings		21,773,824		(57,231	)		(9,150,218	)		(7,074	)		12,559,301
Structures		74,136,523		(180,009	)		(27,864,461	)		(13,207	)		46,078,846
Machinery		94,295,027		(157,785	)		(43,740,838	)		(515,402	)		49,881,002
Ships		2,482		—			(2,227	)		—			255
Vehicles		338,386		(632	)		(259,288	)		(115	)		78,351
Equipment		1,895,528		(227	)		(1,487,643	)		(42	)		407,616
Tools		1,195,721		(239	)		(1,003,295	)		(39	)		192,148
Construction-in- progress		31,121,255		(79,126	)		—			(157,530	)		30,884,599
Right-of-use assets		7,905,214		—			(3,363,048	)		—			4,542,166
Asset retirement costs		12,260,732		—			(4,701,138	)		(146,423	)		7,413,171
Others		13,979,980		—			(11,227,899	)		—			2,752,081

	W	272,874,770		(498,724	)		(102,800,055	)		(866,604	)		168,709,387

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

18.

Property, Plant and Equipment, Continued

(2)

Changes in property, plant and equipment for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance			Acquisition			Disposal			Depreciation			Impairment			Others			Ending balance
Land	W	13,943,326			740			(13,946	)		—			—			51,867			13,981,987
(Government grants)		(23,475	)		—			1			—			—			—			(23,474	)
Buildings		12,616,532			4,095			(9,872	)		(429,904	)		—			759,794			12,940,645
(Government grants)		(57,231	)		—			—			2,578			—			(30	)		(54,683	)
Structures		46,258,855			46,616			(158,245	)		(1,273,227	)		—			2,191,863			47,065,862
(Government grants)		(180,009	)		—			598			4,736			—			(51	)		(174,726	)
Machinery		50,038,787			172,852			(88,526	)		(2,878,503	)		—			2,995,692			50,240,302
(Government grants)		(157,785	)		—			144			8,828			—			(240	)		(149,053	)
Ships		255			—			—			(60	)		—			—			195
Vehicles		78,983			2,578			(4,241	)		(17,478	)		—			29,575			89,417
(Government grants)		(632	)		(26	)		—			213			—			(206	)		(651	)
Equipment		407,843			24,313			(36	)		(92,941	)		—			42,632			381,811
(Government grants)		(227	)		—			—			54			—			(18	)		(191	)
Tools		192,387			6,310			(70	)		(40,906	)		—			16,443			174,164
(Government grants)		(239	)		—			—			113			—			(35	)		(161	)
Construction-in-progress		30,963,725			6,650,057			6,356			—			(3,315	)		(5,612,834	)		32,003,989
(Government grants)		(79,126	)		269			—			—			—			(21,164	)		(100,021	)
Right-of-use assets		4,542,166			49,668			(1,957	)		(285,741	)		—			(9,053	)		4,295,083
Asset retirement costs		7,413,171			—			(209	)		(418,245	)		—			150,367			7,145,084
Others		2,752,081			3,144			(665	)		(421,766	)		—			387,866			2,720,660

	W	168,709,387			6,960,616			(270,668	)		(5,842,249	)		(3,315	)		982,468			170,536,239

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

18.

Property, Plant and Equipment, Continued

(2)

Changes in property, plant and equipment for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won	December 31, 2020
	Beginning balance			Acquisition		Disposal			Depreciation			Impairment			Others			Ending balance
Land	W	13,848,063			5,330		(31,304	)		(273	)		—			121,510			13,943,326
(Government grants)		(21,817	)		—		2			—			—			(1,660	)		(23,475	)
Buildings		12,445,706			7,225		(16,015	)		(875,680	)		(2,107	)		1,057,403			12,616,532
(Government grants)		(61,920	)		—		—			5,206			—			(517	)		(57,231	)
Structures		45,178,870			36,091		(346,612	)		(2,313,920	)		(3,571	)		3,707,997			46,258,855
(Government grants)		(186,554	)		—		2,032			9,526			—			(5,013	)		(180,009	)
Machinery		49,907,300			407,521		(283,845	)		(5,526,816	)		(74,362	)		5,608,989			50,038,787
(Government grants)		(158,907	)		—		496			17,468			—			(16,842	)		(157,785	)
Ships		201			—		—			(106	)		—			160			255
Vehicles		70,585			3,880		(151	)		(35,036	)		—			39,705			78,983
(Government grants)		(2,275	)		—		4			2,064			—			(425	)		(632	)
Equipment		374,115			72,655		(86	)		(186,004	)		—			147,163			407,843
(Government grants)		(241	)		—		—			149			—			(135	)		(227	)
Tools		164,064			28,048		(193	)		(82,862	)		—			83,330			192,387
(Government grants)		(403	)		—		—			243			—			(79	)		(239	)
Construction-in-progress		28,419,470			12,726,469		(486	)		—			7,799			(10,189,527	)		30,963,725
(Government grants)		(61,211	)		8,783		—			—			—			(26,698	)		(79,126	)
Right-of-use assets		4,783,573			291,334		(827	)		(586,254	)		—			54,340			4,542,166
Asset retirement costs		7,374,527			131		(196	)		(819,708	)		—			858,417			7,413,171
Others		2,628,681			6,470		(8,145	)		(984,097	)		(366	)		1,109,538			2,752,081

	W	164,701,827			13,593,937		(685,326	)		(11,376,100	)		(72,607	)		2,547,656			168,709,387

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

19.

Investment Properties

(1)

Investment properties as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	191,294		—			—			191,294
Buildings		59,292		(30	)		(34,544	)		24,718

	W	250,586		(30	)		(34,544	)		216,012


In millions of won	December 31, 2020
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	200,391		—			—			200,391
Buildings		59,347		(29	)		(34,514	)		24,804

	W	259,738		(29	)		(34,514	)		225,195

(2)

Changes in investment properties for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance			Depreciation			Others			Ending balance
Land	W	200,391			—			(9,097	)		191,294
Buildings		24,833			(725	)		640			24,748
(Government grants)		(29	)		—			(1	)		(30	)

	W	225,195			(725	)		(8,458	)		216,012


In millions of won	December 31, 2020
	Beginning balance			Depreciation			Others			Ending balance
Land	W	129,897			—			70,494			200,391
Buildings		28,696			(1,454	)		(2,409	)		24,833
(Government grants)		(13	)		1			(17	)		(29	)

	W	158,580			(1,453	)		68,068			225,195

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

19.

Investment Properties, Continued

(3)

Income and expenses related to investment properties for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021						June 30, 2020
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Rental income	W	2,480			4,814			2,292			3,571
Operating and maintenance expenses related to rental income		(363	)		(725	)		(378	)		(735	)

	W	2,117			4,089			1,914			2,836

(4)

Fair value of investment properties as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Book value		Fair value		Book value		Fair value
Land	W	191,294		306,706		200,391		300,001
Buildings		24,718		44,435		24,804		44,597

	W	216,012		351,141		225,195		344,598

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.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

20.

Construction Contracts

(1)

Changes in total contract amount in which revenue is not yet recognized for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won

June 30, 2021

Beginning
balance

Increase
(decrease) (*)

Recognized as
revenue

Ending
balance

Nuclear power plant construction in UAE and others

3,152,725

185,768

(480,439

)

2,858,054

(*)	For the six-month period ended June 30, 2021, the increased balance of contracts from new orders and foreign exchange impact is W258,400 million and the decreased balance of contracts due to changes in scope of construction work is W72,632 million.

In millions of won

December 31, 2020

Beginning
balance

Increase
(decrease) (*)

Recognized as
revenue

Ending
balance

Nuclear power plant construction in UAE and others

2,735,141

1,229,759

(812,175

)

3,152,725

(*)	For the year ended December 31, 2020, the increased balance of contracts from new orders and foreign exchange impact is W1,512,460 million and the decreased balance of contracts due to changes in scope of construction work is W282,701 million.

(2)

Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of June 30, 2021 and December 31, 2020 are as follows:

In millions of won

June 30, 2021

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in UAE and others

21,884,383

20,619,274

1,265,109

22,556

In millions of won

December 31, 2020

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in UAE and others

21,460,431

20,242,735

1,217,696

97,348

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

20.

Construction Contracts, Continued

(3)

Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of June 30, 2021 and December 31, 2020 are as follows:

In millions of won

June 30, 2021

December 31, 2020

Contract assets
(*1)

Contract liabilities
(*2)

Contract assets
(*1)

Contract liabilities
(*2)

Nuclear power plant construction in UAE and others

109,214

4,520

79,662

88,126

(*1)	Included in trade and other receivables, net, in the consolidated statements of financial position.

(*2)	Included in non-financial liabilities in the consolidated statements of financial position.

(4)

The contract with BOC (purchaser) states that disclosure of information related to UAE nuclear power plant construction projects such as contract date, contractual completion date, completion progress, unbilled construction, impairment losses, etc. are not allowed without consent from the purchaser. BOC 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 BOC 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.

(5)

Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the six-month period ended June 30, 2021 are as follows:


In millions of won	June 30, 2021
	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		Gross		Allowance for doubtful accounts		Gross		Allowance for doubtful accounts
Transmission and distribution	W	—		(10,787	)		(3,498	)		(7,289	)		114,941		60,019		—		—		—
Plant maintenance & engineering service		571		(1,355	)		(1,296	)		(59	)		2,574		49,195		—		56,192		14,139

	W	571		(12,142	)		(4,794	)		(7,348	)		117,515		109,214		—		56,192		14,139

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

21.

Intangible Assets other than Goodwill

(1)

Intangible assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	815,518		(112	)		(664,197	)		—			151,209
Copyrights, patents rights and other industrial rights		102,249		—			(54,406	)		(9,178	)		38,665
Mining rights		616,254		—			(38,107	)		(535,503	)		42,644
Development expenditures		981,970		(4,327	)		(885,620	)		(19	)		92,004
Intangible assets under development		80,533		(7,244	)		—			(12,844	)		60,445
Usage rights of donated assets and others		592,900		—			(416,615	)		—			176,285
Leasehold rights		27,843		—			(21,919	)		—			5,924
Greenhouse gas emissions rights		76,851		—			—			—			76,851
Others		569,116		(72	)		(147,896	)		(12,011	)		409,137

	W	3,863,234		(11,755	)		(2,228,760	)		(569,555	)		1,053,164


In millions of won	December 31, 2020
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	775,667		(136	)		(623,504	)		—			152,027
Licenses and franchises		547		—			(547	)		—			—
Copyrights, patents rights and other industrial rights		101,866		—			(49,772	)		(9,178	)		42,916
Mining rights		604,703		—			(34,062	)		(528,251	)		42,390
Development expenditures		958,035		(5,043	)		(862,850	)		(19	)		90,123
Intangible assets under development		79,862		(7,203	)		—			(12,844	)		59,815
Usage rights of donated assets and others		592,930		—			(408,455	)		—			184,475
Leasehold rights		27,843		—			(21,503	)		—			6,340
Greenhouse gas emissions rights		61,373		—			—			—			61,373
Others		566,200		(75	)		(137,843	)		(12,011	)		416,271

	W	3,769,026		(12,457	)		(2,138,536	)		(562,303	)		1,055,730

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

21.

Intangible Assets other than Goodwill, Continued

(2)

Changes in intangible assets for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance			Acquisition		Disposal			Amortization			Others			Ending balance
Software	W	152,163			5,022		—			(39,013	)		33,149			151,321
(Government grants)		(136	)		—		—			34			(10	)		(112	)
Copyrights, patents rights and other industrial rights		42,916			71		(37	)		(3,895	)		(390	)		38,665
Mining rights		42,390			1,847		—			(2,781	)		1,188			42,644
Development expenditures		95,166			10		—			(19,248	)		20,403			96,331
(Government grants)		(5,043	)		—		—			716			—			(4,327	)
Intangible assets under development		67,018			22,134		—			—			(21,463	)		67,689
(Government grants)		(7,203	)		—		—			—			(41	)		(7,244	)
Usage rights of donated assets and others		184,475			—		—			(7,641	)		(549	)		176,285
Leasehold rights		6,340			—		—			(416	)		—			5,924
Greenhouse gas emissions rights		61,373			7,340		—			—			8,138			76,851
Others		416,346			482		—			(12,641	)		5,022			409,209
(Government grants)		(75	)		—		—			2			1			(72	)

	W	1,055,730			36,906		(37	)		(84,883	)		45,448			1,053,164


In millions of won	December 31, 2020
	Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance
Software	W	164,995			14,101		—			(77,501	)		—			50,568			152,163
(Government grants)		(235	)		—		—			99			—			—			(136	)
Copyrights, patents rights and other industrial rights		53,261			369		(390	)		(8,352	)		—			(1,972	)		42,916
Mining rights		43,723			1,664		—			(4,380	)		—			1,383			42,390
Development expenditures		93,843			10,273		—			(32,034	)		—			23,084			95,166
(Government grants)		(1,492	)		—		—			1,453			—			(5,004	)		(5,043	)
Intangible assets under development		60,490			53,638		—			—			(23	)		(47,087	)		67,018
(Government grants)		(11,029	)		—		—			—			—			3,826			(7,203	)
Usage rights of donated assets and others		193,161			—		—			(18,448	)		—			9,762			184,475
Leasehold rights		5,318			—		—			(831	)		—			1,853			6,340
Greenhouse gas emissions rights		41,656			37,109		(9,271	)		—			—			(8,121	)		61,373
Others		426,364			3,217		(46	)		(30,476	)		(3,576	)		20,863			416,346
(Government grants)		(79	)		—		—			4			—			—			(75	)

	W	1,069,976			120,371		(9,707	)		(170,466	)		(3,599	)		49,155			1,055,730

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

21.

Intangible Assets other than Goodwill, Continued

(3)

Significant specific intangible assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won and thousands of Australian dollars
June 30, 2021
Type	Description	Currency	Amount		Remaining useful lives
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		3,085	1 year 3 months
	Contributions to ARP NRC DC	KRW		27,132	6 years 6 months
Mining rights	Mining rights of Bylong mine	AUD		-	— (*)
Development expenditures	Electricity sales information system	KRW		4,703	8 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge Right of use electricity and gas supply facility (Community district of Songdo)	KRW KRW		24,579 9.489	5 years and 5 months 9 years
Others	Occupancy and use of public waters	KRW		84,329	15 years and 7 months
	Greenhouse gas emissions rights	KRW		76,851	—
	Business rights	KRW		163,333	28 years and 5 months

(*)	The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.


In millions of won and thousands of Australian dollars
December 31, 2020
Type	Description	Currency	Amount		Remaining useful lives
Software	ERP system and others	KRW		81	2 months ~ 4 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		4,936	1 year 9 months
	Contributions to ARP NRC DC	KRW		29,219	7 years
Mining rights	Mining rights of Bylong mine	AUD		-	— (*)
Development expenditures	Electricity sales information system	KRW		8,229	1 year and 2 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right Right of use electricity and gas supply facility (Community district of Songdo)	KRW KRW KRW		26,847 1,574 10,016	5 years and 11 months 3 months 9 years and 6 months
Others	Occupancy and use of public waters	KRW		87,035	16 years and 1 month
	Greenhouse gas emissions rights	KRW		61,373	—
	Business rights	KRW		166,207	28 years and 11 months

(*)	The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

(4)

For the six-month periods ended June 30, 2021 and 2020, the Group recognized research and development expenses of W312,070 million and W299,371 million, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

22.

Trade and Other Payables

Trade and other payables as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Trade payables	W	2,758,253		—		2,606,861		—
Non-trade payables		2,006,062		2,353,366		1,785,068		2,324,965
Accrued expenses		1,383,059		2,148		1,197,815		2,038
Leasehold deposits received		2,404		935		2,336		943
Other deposits received		79,497		68,505		83,505		67,645
Lease liabilities		572,029		3,904,201		576,665		4,044,431
Dividends payable		3,601		—		4,271		—
Others (*)		—		57,837		—		40,390

	W	6,804,905		6,386,992		6,256,521		6,480,412

(*)	Details of others as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Advance received from local governments	W	—		4,278		—		4,278
Others		—		53,559		—		36,112

	W	—		57,837		—		40,390

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities

(1)

Borrowings and debt securities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Current liabilities
Short-term borrowings	W	4,812,671			1,436,922
Current portion of long-term borrowings		811,597			677,982
Current portion of debt securities		9,392,736			8,565,301
Less: Current portion of discount on long-term borrowings		(2,327	)		(1,723	)
Less: Current portion of discount on debt securities		(3,940	)		(3,677	)

		15,010,737			10,674,805

Non-current liabilities
Long-term borrowings		2,852,828			3,018,898
Debt securities		56,231,180			56,188,234
Less: Discount on long-term borrowings		(14,136	)		(14,899	)
Less: Discount on debt securities		(150,306	)		(143,823	)
Add: Premium on debt securities		1,166			1,366

		58,920,732			59,049,776

	W	73,931,469			69,724,581

(2)

Repayment schedule of borrowings and debt securities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
June 30, 2021
Type	Borrowings		Debt Securities
Less than 1 year	W	5,624,268		9,392,736
1~ 5 years		1,677,197		30,498,254
Over 5 years		1,175,631		25,732,926

	W	8,477,096		65,623,916


In millions of won
December 31, 2020
Type	Borrowings		Debt Securities
Less than 1 year	W	2,114,904		8,565,301
1~ 5 years		1,564,252		28,746,117
Over 5 years		1,454,646		27,442,117

	W	5,133,802		64,753,535

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(3)

Short-term borrowings as of June 30, 2021 and December 31, 2020 are as follows:

In millions of won and thousands of foreign currencies

June 30, 2021

Type

Creditor

Interest rate (%)

Maturity

Foreign
currency

Local
currency

Local short-term borrowings

DB financial investment and others

0.68 ~ 4.60

2021.07.20 ~ 2021.12.31

—

4,430,422

Electronic short-term bonds

BNK Securities and others

1.00 ~ 1.25

2021.07.05 ~ 2021.07.28

—

130,000

Foreign short-term borrowings

Shinhan Bank

0.38 ~ 0.41

2021.07.01 ~ 2021.09.14

USD

60,270

68,105

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD

118,024

133,366

Foreign short-term borrowings

Solar Construction Lending, LLC

5.00

2021.12.31

USD

44,936

50,778

4,812,671

In millions of won and thousands of foreign currencies

December 31, 2020

Type

Creditor

Interest rate (%)

Maturity

Foreign
currency

Local
currency

Local short-term borrowings

DB financial investment and others

0.80 ~ 4.60

2021.01.05 ~ 2021.12.31

—

580,004

Electronic short-term bonds

KB Securities and others

0.75 ~ 1.35

2021.01.13 ~ 2021.03.18

—

470,000

Foreign short-term borrowings

Shinhan Bank

0.71 ~ 0.74

2021.01.04 ~ 2021.03.31

USD 55,393

60,268

Foreign short-term borrowings (*)

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD 73,704

81,290

Local bank overdraft

Woori Bank

Standard overdraft
rate + 1.26

2021.02.26

—

29,960

Local bank overdraft

Korea Development Bank and others

1.42 ~ 1.88

2021.01.07 ~ 2021.04.26

—

215,400

1,436,922

(*)	The contractual maturity is 2022 but is classified as short-term borrowing due to intention of early redemption in 3 months after borrowing.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(4)

Long-term borrowings as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won and thousands of foreign currencies
June 30, 2021
Type		Interest rate (%)		Maturity		Foreign currency		Local currency

Local long-term borrowings
Korea Development Bank	Others		0.50		2021~2044		—	W	2,727
	Facility		2.50~4.60		2023~2028		—		44,879
	Operating funds		2.33		2022		—		20,000
	Operating funds		1yr KoFC bond rate + 0.81~0.95		2022~2023		—		24,300
Hana Bank	Commercial Paper		3M CD+0.13~0.32		2021~2024		—		1,150,000
	Facility		4.60		2028		—		10,376
	Facility		3yr KTB rate-1.25 Standard overdraft rate+1.50		2021~2035		—		17,159
IBK	PF Refinancing		CD+1.25		2030		—		9,066
Export-Import Bank of Korea	Project loans		1.50		2026		—		14,731
	Facility		1.32		2028		—		32,000
	Operating funds		1.78		2023		—		15,700
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		1,990
	Facility		3yr KTB rate-2.25		2021~2024		—		1,261
	Project loans		—		2023		—		1,197
	Others		KTB rate-2.25		2024~2028		—		13,219
Shinhan Bank and others	Facility		CB rate+1.10		2028		—		15,564
	Others		3.95		2034		—		86,743
	Others		Standard overdraft rate+1.00		2034		—		86,743
Kookmin Bank	Facility		MOR+0.79 3M CD+1.79		2023~2031		—		49,613
Others	Facility		1.75~6.80		2026~2038		—		582,166
	Facility		CB rate+1.10~1.20 3M CD+1.60 Standard overdraft rate+1.50		2023~2037		—		83,909
	PF Refinancing		4.10		2030		—		25,181
	Others		4.40~7.90		2022~2039		—		112,257

									2,400,781

Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2021~2023		USD 8,779		9,920
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036		USD 92,690		104,740
	Direct loan and others		3M Libor+2.75~3.70		2027		JOD 119,042		189,729
	PF Loan		6M Libor+1.70~2.50		2032		USD 108,461		122,561
	Others		3.88		2021		USD 289,770		327,440
POSCO and others	Shareholder’s loan		8.00		2025		USD 14,803		16,727
	Shareholder’s loan		8.00		2031		JOD 4,853		7,735
Samsung Life Insurance and others	Syndicated Loan		3.10		2032		JPY 4,372,713		44,694
Woori Bank and others	Syndicated Loan		JPY 6M Libor+2.00		2032		JPY 2,820,708		28,831
KiwoomSolar Power Professional Investor Private Placement Investment Trust V	Senior borrowing		3.90		2029		EUR 36,996		49,738
IFC and others	Others		6M Libor+5.00		2031		USD 223,710		252,792
Federal Financing Bank and others	PF Loan		2.39~6.00		2031~2038		USD 96,227		108,737

									1,263,644

									3,664,425
Less: Discount on long-term borrowings									(16,463	)
Less: Current portion of long-term borrowings									(811,597	)
Add: Current portion of discount on long-term borrowings									2,327

								W	2,838,692

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(4)

Long-term borrowings as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won and thousands of foreign currencies
December 31, 2020
Type		Interest rate (%)	Maturity		Foreign currency		Local currency

Local long-term borrowings
Korea Development Bank	Others	0.50		2021~2044		—	W	2,946
	Facility	2.50~4.60		2021~2028		—		50,293
	Operating funds	2.33		2022		—		20,000
	Operating funds	1yr KoFC bond rate + 0.81~0.95		2022~2023		—		24,300
Hana Bank	Commercial Paper	3M CD+0.13~0.32		2021~2024		—		1,150,000
	Facility	4.60		2028		—		11,088
	Facility	3yr KTB rate-1.25 Standard overdraft rate+1.50~2.45		2021~2035		—		43,419
IBK	PF Refinancing	CD+1.25		2030		—		9,543
Export-Import Bank of Korea	Project loans	1.50		2026		—		16,204
	Facility	1.32		2028		—		32,000
	Operating funds	1.78		2023		—		15,700
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25		2023~2025		—		2,509
	Facility	3yr KTB rate-2.25		2021~2024		—		1,527
	Project loans	—		2023		—		1,197
	Others	KTB rate-2.25		2024~2028		—		14,045
Shinhan Bank	Facility	CB rate+1.10		2028		—		16,632
	Others	3.95		2034		—		89,257
	Others	Standard overdraft rate+1.00		2034		—		89,257
Kookmin Bank	Facility	MOR+0.79 3M CD+1.79		2021~2031		—		46,512
Others	Facility	1.75~6.80		2026~2037		—		510,262
	Facility	CB rate+1.10~1.20 3M CD+1.60 Standard overdraft rate+1.50~2.45		2023~2037		—		89,506
	PF Refinancing	4.10		2030		—		26,509
	Others	3.90~7.90		2023~2039		—		222,356

								2,485,062

Foreign long-term borrowings
Korea Energy Agency	Project loans	—		2021~2023		USD 8,744		9,513
Export-Import Bank of Korea and others	Direct loan and others	1M Libor+1.80~3.20		2036		USD 96,014		104,463
	Direct loan and others	3M Libor+2.75~3.70		2027		JOD 132,228		202,912
	PF Loan	6M Libor+1.70~2.50		2032		USD 111,225		121,013
	Others	3.88		2021		USD 289,509		314,986
POSCO and others	Shareholder’s loan	8.00		2023		USD 14,061		15,298
	Shareholder’s loan	8.00		2031		JOD 4,853		7,447
Samsung Life Insurance and others	Syndicated Loan	3.10		2032		JPY 4,682,816		49,369
Woori Bank and others	Syndicated Loan	JPY 6M Libor+2.00		2032		JPY 3,020,746		31,847
IFC and others	Others	6M Libor+5.00		2031		USD 224,115		243,837
Federal Financing Bank and others	PF Loan	2.39~6.00		2031~2038		USD 97,347		105,913
Others	Others	—		—		USD 4,798		5,220

								1,211,818

								3,696,880
Less: Discount on long-term borrowings								(16,622	)
Less: Current portion of long-term borrowings								(677,982	)
Add: Current portion of discount on long-term borrowings								1,723

							W	3,003,999

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(5)

Local debt securities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
	Issue date		Maturity		Interest rate (%)		June 30, 2021			December 31, 2020
Electricity Bonds		2011.07.05~2021.06.29		2021.07.05~2049.10.24		1.02~4.44	W	26,800,000			27,810,000
Corporate Bonds (*)		2009.10.16~2021.06.29		2021.07.02~2051.06.29		0.86~6.00		27,363,772			26,463,577

								54,163,772			54,273,577
Less: Discount on local debt securities								(49,321	)		(46,730	)
Less: Current portion of local debt securities								(7,562,817	)		(7,243,217	)
Add: Current portion of discount on local debt securities								2,010			2,108

							W	46,553,644			46,985,738

(*)

Among the corporate bonds, each holder of Hee mang sunlight Power Co., Ltd.’s private equity bonds, amounting to W2,697 million, may exercise the right of early redemption on the 5th year (March 31, 2021) from the date of issuance of the bond and every year on March 31 thereafter, until the year before the redemption date.

(6)

Foreign debt securities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won and thousands of foreign currencies
June 30, 2021
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	314,932
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		355,630
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		324,220
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000		565,000
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		847,500
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000		113,000
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		339,000
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000		339,000
FY-17	2017.06.19~2017.07.25	2022.06.19~2027.07.25	2.63~3.13		USD 800,000		904,000
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		53,777
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		59,639
FY-18	2018.06.07~2018.07.25	2023.06.07~2023.07.25	3.75~3.88		USD 1,400,000		1,582,000
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		240,158
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38		USD 800,000		904,000
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		245,358
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		368,037
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000		339,000
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000		254,658
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 380,296		429,735
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000		339,000
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000		565,000
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000		565,000
FY-20	2020.08.03	2026.02.03	1.00		USD 300,000		339,000
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000		508,500
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000		565,000

							11,460,144
Less: Discount on foreign debt securities							(104,925	)
Add: Premium on foreign debt securities							1,166
Less: Current portion of foreign debt securities							(1,829,919	)
Add: Current portion of discount on foreign debt securities							1,930

						W	9,528,396

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(6)

Foreign debt securities as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won and thousands of foreign currencies
December 31, 2020
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	303,227
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		342,412
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		312,169
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000		544,000
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		816,000
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000		108,800
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		326,400
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000		326,400
FY-17	2017.06.19~2017.07.25	2022.06.19~2027.07.25	2.63~3.13		USD 800,000		870,400
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		53,530
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		59,747
FY-18	2018.01.29~2018.07.25	2021.01.29~2023.07.25	3.00~3.88		USD 1,800,000		1,958,400
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		231,578
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38		USD 800,000		870,400
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		246,866
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		370,299
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000		326,400
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000		250,968
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 387,098		421,163
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000		326,400
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000		544,000
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000		544,000
FY-20	2020.08.03	2026.02.03	1.00		USD 300,000		326,399

							10,479,958
Less: Discount on foreign debt securities							(100,770	)
Add: Premium on foreign debt securities							1,366
Less: Current portion of foreign debt securities							(1,322,084	)
Add: Current portion of discount on foreign debt securities							1,569

						W	9,060,039

(7)

Changes in borrowings and debt securities for the six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021		June 30, 2020
Beginning balance	W	69,724,581		67,876,541
Cash flow		3,678,242		2,439,902
Effect of exchange rate fluctuations		447,654		461,094
Others		80,992		(68,434	)

Ending balance	W	73,931,469		70,709,103

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

24.

Lease

1)	Group as a lessee

(1)

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 W56,952 million and W14,550 million respectively, as expense for the six-month periods ended June 30, 2021 and 2020. 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 W836 million and W1,197 million respectively, as expense for the six-month periods ended June 30, 2021 and 2020. The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2)

Right-of-use assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Acquisition cost		Accumulated depreciation			Book value
Land	W	812,655		(132,706	)		679,949
Buildings		92,453		(39,908	)		52,545
Structures		25,369		(4,422	)		20,947
Machinery		1,308		(678	)		630
Ships		4,273,336		(1,047,373	)		3,225,963
Vehicles		30,266		(16,088	)		14,178
Others (*)		2,690,048		(2,389,177	)		300,871

	W	7,925,435		(3,630,352	)		4,295,083

(*)	Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.


In millions of won	December 31, 2020
	Acquisition cost		Accumulated depreciation			Book value
Land	W	811,014		(104,435	)		706,579
Buildings		82,749		(35,527	)		47,222
Structures		24,175		(3,689	)		20,486
Machinery		1,308		(613	)		695
Ships		4,280,331		(842,968	)		3,437,363
Vehicles		29,281		(15,756	)		13,525
Others (*)		2,676,356		(2,360,060	)		316,296

	W	7,905,214		(3,363,048	)		4,542,166

(*)	Including power purchase agreements (“PPA”) with GS EPS and two other LNG combined power supplier.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

24.

Lease, Continued

(3)

Changes in right-of-use assets for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
Land	W	706,579		6,037		(28,402	)		—			(4,265	)		679,949
Buildings		47,222		23,278		(17,279	)		(1,311	)		635			52,545
Structures		20,486		1,194		(733	)		—			—			20,947
Machinery		695		—		(65	)		—			—			630
Ships		3,437,363		—		(207,449	)		—			(3,951	)		3,225,963
Vehicles		13,525		5,713		(4,070	)		(7	)		(983	)		14,178
Others		316,296		13,446		(27,743	)		(639	)		(489	)		300,871

	W	4,542,166		49,668		(285,741	)		(1,957	)		(9,053	)		4,295,083


In millions of won	December 31, 2020
	Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
Land	W	644,074		12,269		(52,069	)		—			102,305			706,579
Buildings		34,577		53,182		(37,609	)		(803	)		(2,125	)		47,222
Structures		25,644		260		(1,485	)		—			(3,933	)		20,486
Machinery		824		—		(129	)		—			—			695
Ships		3,688,289		183,789		(427,221	)		—			(7,494	)		3,437,363
Vehicles		13,708		9,009		(7,747	)		(21	)		(1,424	)		13,525
Others		376,457		32,825		(59,994	)		(3	)		(32,989	)		316,296

	W	4,783,573		291,334		(586,254	)		(827	)		54,340			4,542,166

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

24.

Lease, Continued

(4)

Lease liabilities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Less than 1 year	W	598,721			614,442
1 ~ 5 years		2,124,757			2,133,538
More than 5 years		2,310,810			2,461,557

		5,034,288			5,209,537
Less: Discount		(558,058	)		(588,441	)

Present value of lease payment	W	4,476,230			4,621,096

(5)

The details of the liquidity classification of lease liabilities as June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Current lease liabilities	W	572,029		576,665
Non-current lease liabilities		3,904,201		4,044,431

	W	4,476,230		4,621,096

(6)

Changes in lease liabilities for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance		Increase		Decrease			Interest expenses		*Others ()**		Ending balance
Lease liabilities	W	4,621,096		43,484		(369,095	)		47,047		133,698		4,476,230


In millions of won	December 31, 2020
	Beginning balance		Increase		Decrease			Interest expenses		*Others ()**			Ending balance
Lease liabilities	W	5,070,133		280,114		(725,759	)		111,782		(115,174	)		4,621,096

(*)	Including translation effect of foreign currency lease liabilities and others.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

24.

Lease, Continued

(7)

Details of expense relating to lease contracts as lessee for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Depreciation of right-of-use assets	W	138,729		285,741		150,644		299,280
Interest expenses of lease liabilities		23,513		47,047		26,266		56,712
Lease expenses for short-term leases		51,035		56,952		4,912		14,550
Lease expenses for leases of low-value assets		413		836		799		1,197
Variable lease payments		6,865		10,596		6,425		17,288

	W	220,555		401,172		189,046		389,027

(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 W437,478 million and W443,724 million, for the six-month periods ended June 30, 2021 and 2020, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (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. Also, the Group has provided fly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 26 energy storage system installation projects and 122 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Group entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

(2)

Profit and loss related to finance lease for the three and six-month periods ended June 30, 2021 and 2020 are as follows:

In millions of won

June 30, 2021

June 30, 2020

Three-month
period ended

Six-month
period ended

Three-month
period ended

Six-month
period ended

Finance income on the net investment in the lease

27,459

55,627

30,843

61,689

(3)

Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Less than 1 year	W	164,790			162,211
1 ~ 2 years		156,558			148,485
2 ~ 3 years		150,120			144,913
3 ~ 4 years		147,985			139,605
4 ~ 5 years		143,952			136,962
More than 5 years		1,588,136			1,583,576

		2,351,541			2,315,752
Less: Unearned finance income		(1,190,940	)		(1,192,686	)

Net investment in the lease (*)	W	1,160,601			1,123,066

(*)	Including the present value of unguaranteed residual value amounting to W17,831 million and W16,407 million, as of June 30, 2021 and December 31, 2020, 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 1.39% up to 16.83% per year as of June 30, 2021. (prior year : 1.39% ~ 16.60%)

(4)

Changes in the allowance for doubtful accounts of finance lease receivables for the six-month periods ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	990			862
Bad debt expense		—			128
Reversal of allowance of doubtful accounts		(141	)		—

Ending balance	W	849			990

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

25.

Employment Benefits

(1)

Employment benefit obligations as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Net defined benefit asset	W	—		7,231
Net defined benefit obligations		1,994,652		1,907,013
Other long-term employee benefit obligations		3,530		3,847

(2)

Principal assumptions on actuarial valuation as of June 30, 2021 and December 31, 2020 are as follows:


	June 30, 2021	December 31, 2020
Discount rate	2.23% ~ 2.43%	1.87% ~ 2.12%
Future salary and benefit levels	4.28%	4.28%
Weighted average duration	10.32 years	10.77 years

(3)

Details of expense relating to defined benefit plans for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021						June 30, 2020
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Current service cost	W	127,820			256,449			120,529			235,098
Interest cost		22,302			44,108			20,376			39,834
Expected return on plan assets		(12,765	)		(25,661	)		(10,387	)		(20,738	)
Past service cost		—			—			—			(2,027	)

	W	137,357			274,896			130,518			252,167

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


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Cost of sales	W	101,528		203,229		93,610		183,676
Selling and administrative expenses		21,666		43,380		22,802		41,694
Others (Construction-in-progress and others)		14,163		28,287		14,106		26,797

	W	137,357		274,896		130,518		252,167

In addition, for the six-month periods ended June 30, 2021 and 2020, employee benefit obligations expenses of W33,279 million and W27,336 million, respectively, are recognized as cost of sales, and W5,615 million and W3,847 million, respectively, are recognized as selling and administrative expenses, and W6,127 million and W5,364 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

25.

Employment Benefits, Continued

(4)

Details of defined benefit obligations as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Present value of defined benefit obligation from funded plans	W	4,616,970			4,570,614
Fair value of plan assets		(2,622,318	)		(2,670,832	)

Net liabilities incurred from defined benefit plans	W	1,994,652			1,899,782

(5)

Changes in the present value of defined benefit obligations for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	4,570,614			4,035,400
Current service cost		256,449			509,520
Interest cost		44,108			83,248
Remeasurement component		(111,215	)		84,385
Past service cost		—			(2,027	)
Actual payments		(142,991	)		(139,956	)
Others		5			44

Ending balance	W	4,616,970			4,570,614

(6)

Changes in the fair value of plan assets for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	2,670,832			2,111,313
Expected return		25,661			42,742
Remeasurement component		(2,891	)		(390	)
Contributions by the employers		1,625			582,275
Actual payments		(72,909	)		(65,108	)

Ending balance	W	2,622,318			2,670,832

In addition, loss on accumulated remeasurement component amounting to W37,040 million and W169,234 million has been recognized as other comprehensive income or loss for the six-month period ended June 30, 2021 and for the year ended December 31, 2020, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

25.

Employment Benefits, Continued

(7)

Details of the fair value of plan assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Equity instruments	W	341,559		253,358
Debt instruments		705,285		822,582
Bank deposit		312,472		284,655
Others		1,263,002		1,310,237

	W	2,622,318		2,670,832

For the six-month period ended June 30, 2021 and for the year ended December 31, 2020, actual returns on plan assets amounted to W22,770 million and W42,352 million, respectively.

(8)

Remeasurement component recognized in other comprehensive income (loss) for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Actuarial gain from changes in financial assumptions	W	(148,325	)		(2,979	)
Experience adjustments, etc.		37,110			87,364
Expected return		2,891			390

	W	(108,324	)		84,775

Remeasurement component recognized as other comprehensive income or loss is included in retained earnings.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

26.

Provisions

(1)

Provisions as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Employment benefits
Provisions for employment benefits	W	1,129,088		—		1,024,574		—

Litigation
Litigation provisions		43,527		40,646		46,287		66,715

Decommissioning cost
Nuclear plants		—		17,136,763		—		16,974,884
Spent fuel		437,957		913,347		487,529		866,472
Radioactive waste		71,720		1,856,662		46,369		1,845,244
PCBs		—		113,742		—		119,019
Other recovery provisions		—		27,032		—		25,840

Others
Power plant regional support program		172,990		—		144,272		—
Transmission regional support program		140,992		—		96,895		—
Provisions for financial guarantee		21,551		66,280		22,250		44,104
Provisions for RPS		24,184		—		9,126		—
Provisions for greenhouse gas emissions obligations		138,882		—		393,121		—
Others		212,067		127,783		181,241		133,294

	W	2,392,958		20,282,255		2,451,664		20,075,572

(2)

Changes in provisions for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance		Increase in provision		Payment			Reversal			Others		Ending balance
Employment benefits
Provisions for employment benefits	W	1,024,574		561,756		(457,247	)		—			5		1,129,088

Litigation
Litigation provisions		113,002		14,930		(35,860	)		(7,899	)		—		84,173

Decommissioning cost
Nuclear plants		16,974,884		188,065		(26,186	)		—			—		17,136,763
Spent fuel		1,354,001		237,974		(240,671	)		—			—		1,351,304
Radioactive waste		1,891,613		39,242		(2,473	)		—			—		1,928,382
PCBs		119,019		1,091		(6,368	)		—			—		113,742
Other recovery provisions		25,840		279		—			(422	)		1,335		27,032

Others
Power plant regional support program		144,272		44,200		(20,878	)		—			5,396		172,990
Transmission regional support program		96,895		113,852		(69,755	)		—			—		140,992
Provisions for financial guarantee		66,354		29,911		(8,228	)		(370	)		164		87,831
Provisions for RPS		9,126		215,190		(200,132	)		—			—		24,184
Provisions for greenhouse gas emissions obligations		393,121		—		(144,512	)		(134,680	)		24,953		138,882
Others		314,535		56,058		(21,455	)		(9,861	)		573		339,850

	W	22,527,236		1,502,548		(1,233,765	)		(153,232	)		32,426		22,675,213

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

26.

Provisions, Continued

(2)

Changes in provisions for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows, continued:


In millions of won	December 31, 2020
	Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
Employment benefits
Provisions for employment benefits	W	975,619		1,078,382		(1,028,218	)		—			(1,209	)		1,024,574

Litigation
Litigation provisions		88,398		81,990		(34,662	)		(22,724	)		—			113,002

Decommissioning cost
Nuclear plants		15,994,039		1,028,580		(47,735	)		—			—			16,974,884
Spent fuel		1,355,280		394,642		(395,921	)		—			—			1,354,001
Radioactive waste		1,888,082		71,529		(67,998	)		—			—			1,891,613
PCBs		152,981		3,017		(14,839	)		(22,140	)		—			119,019
Other recovery provisions		10,773		15,280		—			—			(213	)		25,840

Others
Power plant regional support program		140,133		39,445		(42,935	)		—			7,629			144,272
Transmission regional support program		139,785		151,796		(194,686	)		—			—			96,895
Provisions for tax		—		—		(24	)		25			(1	)		—
Provisions for financial guarantee		81,357		11,303		(20,962	)		(5,317	)		(27	)		66,354
Provisions for RPS		2,889		494,199		(487,962	)		—			—			9,126
Provisions for greenhouse gas emissions obligations		682,459		331,684		(633,482	)		65,389			(52,929	)		393,121
Others		158,974		210,051		(48,919	)		(4,593	)		(978	)		314,535

	W	21,670,769		3,911,898		(3,018,343	)		10,640			(47,728	)		22,527,236

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

27.

Government Grants

(1)

Government grants as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Land	W	(23,474	)		(23,475	)
Buildings		(54,683	)		(57,231	)
Structures		(174,726	)		(180,009	)
Machinery		(149,053	)		(157,785	)
Vehicles		(651	)		(632	)
Equipment		(191	)		(227	)
Tools		(161	)		(239	)
Construction-in-progress		(100,021	)		(79,126	)
Investment properties		(30	)		(29	)
Software		(112	)		(136	)
Development expenditures		(4,327	)		(5,043	)
Intangible assets under development		(7,244	)		(7,203	)
Other intangible assets		(72	)		(75	)

	W	(514,745	)		(511,210	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

27.

Government Grants, Continued

(2)

Changes in government grants for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(21,205	)		—			—		—		21,205			—
Land		(23,475	)		—			—			—		1		—			(23,474	)
Buildings		(57,231	)		—			—			2,578		—		(30	)		(54,683	)
Structures		(180,009	)		—			—			4,736		598		(51	)		(174,726	)
Machinery		(157,785	)		—			—			8,828		144		(240	)		(149,053	)
Vehicles		(632	)		—			(26	)		213		—		(206	)		(651	)
Equipment		(227	)		—			—			54		—		(18	)		(191	)
Tools		(239	)		—			—			113		—		(35	)		(161	)
Construction-in-progress		(79,126	)		—			269			—		—		(21,164	)		(100,021	)
Investment properties		(29	)		—			—			—		—		(1	)		(30	)
Software		(136	)		—			—			34		—		(10	)		(112	)
Development expenditures		(5,043	)		—			—			716		—		—			(4,327	)
Intangible assets under development		(7,203	)		—			—			—		—		(41	)		(7,244	)
Other intangible assets		(75	)		—			—			2		—		1			(72	)

	W	(511,210	)		(21,205	)		243			17,274		743		(590	)		(514,745	)


In millions of won	December 31, 2020
	Beginning balance			Receipt			Acquisition		Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(41,209	)		—		—		—		41,209			—
Land		(21,817	)		—			—		—		2		(1,660	)		(23,475	)
Buildings		(61,920	)		—			—		5,206		—		(517	)		(57,231	)
Structures		(186,554	)		—			—		9,526		2,032		(5,013	)		(180,009	)
Machinery		(158,907	)		—			—		17,468		496		(16,842	)		(157,785	)
Vehicles		(2,275	)		—			—		2,064		4		(425	)		(632	)
Equipment		(241	)		—			—		149		—		(135	)		(227	)
Tools		(403	)		—			—		243		—		(79	)		(239	)
Construction-in-progress		(61,211	)		—			8,783		—		—		(26,698	)		(79,126	)
Investment properties		(13	)		—			—		1		—		(17	)		(29	)
Software		(235	)		—			—		99		—		—			(136	)
Development expenditures		(1,492	)		—			—		1,453		—		(5,004	)		(5,043	)
Intangible assets under development		(11,029	)		—			—		—		—		3,826			(7,203	)
Other intangible assets		(79	)		—			—		4		—		—			(75	)

	W	(506,176	)		(41,209	)		8,783		36,213		2,534		(11,355	)		(511,210	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

28.

Deferred Revenue

Deferred revenue for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows which are included in current and non-current non-financial liabilities in the consolidated statements of financial position:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	9,868,189			9,201,538
Increase		529,529			1,310,128
Recognized as revenue		(324,950	)		(643,477	)

Ending balance	W	10,072,768			9,868,189

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

29.

Non-financial Liabilities

Non-financial liabilities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Current		Non-current		Current		Non-current
Advance received	W	3,961,861		397,174		3,693,043		331,596
Unearned revenue		41,090		5,883		35,068		6,122
Deferred revenue		640,707		9,432,061		625,596		9,242,593
Withholdings		327,688		5,061		257,059		9,909
Others		1,296,382		99,625		1,360,684		71,721

	W	6,267,728		9,939,804		5,971,450		9,661,941

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

30.

Contributed Capital

(1)

Details of share capital as of June 30, 2021 and December 31, 2020 are as follows:

In millions of won except share information

June 30, 2021

Shares
authorized

Shares issued

Par value
per share
(in won)

Owned by
government (*)

Owned by
others

Total

Common shares

1,200,000,000

641,964,077

5,000

1,640,385

1,569,435

3,209,820

(*)	Korea Development Bank’s interest of W1,056,176 million is included.

In millions of won except share information

December 31, 2020

Shares
authorized

Shares issued

Par value
per share
(in won)

Owned by
government (*)

Owned by
others

Total

Common shares

1,200,000,000

641,964,077

5,000

1,640,385

1,569,435

3,209,820

(*)	Korea Development Bank’s interest of W1,056,176 million is included.

(2)

Details in number of floating capital stock for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


Number of shares	June 30, 2021		December 31, 2020
Beginning balance		641,964,077		641,964,077

Ending balance		641,964,077		641,964,077

(3)

Details of share premium as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Share premium	W	843,758		843,758

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

31.	Retained Earnings and Dividends Paid

(1)	Details of retained earnings as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Legal reserve (*)	W	1,604,910		1,604,910
Voluntary reserves		33,282,816		32,179,066
Retained earnings before appropriations		14,923,588		17,349,625

Retained earnings	W	49,811,314		51,133,601

(*)

The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders.

(2)

Details of voluntary reserves as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Reserve for investment on social overhead capital	W	5,277,449		5,277,449
Reserve for research and human development (*)		330,000		330,000
Reserve for business expansion		27,465,367		26,361,617
Reserve for equalizing dividends		210,000		210,000

	W	33,282,816		32,179,066

(*)	The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea.

(3)

Changes in retained earnings for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	51,133,601			49,202,133
Profit (loss) for the period attributed to owner of the controlling Company		(610,120	)		1,991,347
Changes in equity method retained earnings		(1,176	)		3,181
Remeasurements of defined benefit liability, net of tax		65,183			(62,857	)
Dividends		(780,628	)		—
Transactions between consolidated entities		—			(203	)
Others		4,454			—

Ending balance	W	49,811,314			51,133,601

100

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

31.

Retained Earnings and Dividends Paid, Continued

(4)

Dividends paid for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won

June 30, 2021

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

1,216

780,628

In millions of won

December 31, 2020

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share
(In won)

Dividends
paid

Common shares

641,964,077

—

641,964,077

—

(5)

Changes in retained earnings of investments in associates and joint ventures for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	361			(2,820	)
Changes		(1,176	)		3,181

Ending balance	W	(815	)		361

(6)

Changes in remeasurement components related to defined benefit liability for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Beginning balance	W	(169,234	)		(117,779	)
Changes		105,757			(77,828	)
Income tax effect		(40,574	)		14,971
Transfer to reserve for business expansion		67,011			11,402

Ending balance	W	(37,040	)		(169,234	)

101

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

32.

Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interest) as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
Issuer	Hybrid bond	Issued date		Maturity		Yield (%)		June 30, 2021			December 31, 2020
Korea South-East Power Co., Ltd.	1st hybrid bond		2012.12.07		2042.12.06		4.38	W	170,000			170,000
Korea South-East Power Co., Ltd.	2nd hybrid bond		2012.12.07		2042.12.06		4.44		230,000			230,000
Expense of issuance									(1,090	)		(1,090	)

								W	398,910			398,910

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 ordinary shares, they are not required to pay interest on the hybrid bonds.

Substantially, as these instruments have no contractual obligation to pay principal and interest, these instruments have been classified as equity (non-controlling interest) in the Group’s consolidated financial statements.

102

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

33.

Other Components of Equity

(1)

Other components of equity of the parent as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Other capital surplus	W	1,227,509			1,224,105
Accumulated other comprehensive income (loss)		(143,507	)		(409,577	)
Other equity		13,294,973			13,294,973

	W	14,378,975			14,109,501

(2)

Changes in other capital surplus for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021								December 31, 2020
In millions of won	Gains on disposal of treasury stocks		Others			Subtotal			Gains on disposal of treasury stocks		Others			Subtotal
Beginning balance	W	387,524		836,581			1,224,105			387,524		838,840			1,226,364
Issuance of share capital of subsidiary		—		(373	)		(373	)		—		(148	)		(148	)
Others		—		3,777			3,777			—		(2,111	)		(2,111	)

Ending balance	W	387,524		839,985			1,227,509			387,524		836,581			1,224,105

103

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

33.

Other Components of Equity, Continued

(3)

Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Financial asset at fair value through other comprehensive income valuation reserve			Shares in 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	(101,132	)		10,091		(340,930	)		22,394		(409,577	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		35,064			—		—			—		35,064
Shares in other comprehensive income of associates and joint ventures, net of tax		—			184,552		—			—		184,552
Foreign currency translation of foreign operations, net of tax		—			—		15,363			—		15,363
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—		—			35,545		35,545

Others		(4,454	)		—		—			—		(4,454	)

Ending balance	W	(70,522	)		194,643		(325,567	)		57,939		(143,507	)


In millions of won	December 31, 2020
	Financial asset at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income (loss) 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	(92,599	)		142,896			(294,898	)		(36,129	)		(280,730	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		(8,533	)		—			—			—			(8,533	)
Shares in other comprehensive income(loss) of associates and joint ventures, net of tax		—			(132,805	)		—			—			(132,805	)
Foreign currency translation of foreign operations, net of tax		—			—			(46,032	)		—			(46,032	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—			—			58,523			58,523

Ending balance	W	(101,132	)		10,091			(340,930	)		22,394			(409,577	)

(4)

Other equity as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Statutory revaluation reserve	W	13,295,098			13,295,098
Changes in other equity		(125	)		(125	)

	W	13,294,973			13,294,973

104

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

34.

Sales

Details of sales for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021
	Domestic				Overseas				Total
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
[Type of goods and services]
Sales of goods	W	12,798,978		27,368,079		112,017		228,136		12,910,995		27,596,215
Electricity		12,598,875		26,876,541		—		—		12,598,875		26,876,541
Heat supply		22,928		125,520		—		—		22,928		125,520
Others		177,175		366,018		112,017		228,136		289,192		594,154
Sales related to rendering of services		50,997		105,119		43,939		87,492		94,936		192,611
Sales related to construction services		37,264		63,068		312,084		417,371		349,348		480,439
Revenue related to transfer of assets from customers		163,636		324,950		—		—		163,636		324,950

	W	13,050,875		27,861,216		468,040		732,999		13,518,915		28,594,215

[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	12,798,978		27,368,079		112,017		228,136		12,910,995		27,596,215
Performance obligations satisfied over time		251,897		493,137		356,023		504,863		607,920		998,000

	W	13,050,875		27,861,216		468,040		732,999		13,518,915		28,594,215


In millions of won	June 30, 2020
	Domestic				Overseas				Total
	Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended		Three- month period ended		Six- month period ended
[Type of goods and services]
Sales of goods	W	12,468,447		27,018,682		91,207		153,816		12,559,654		27,172,498
Electricity		12,295,584		26,599,967		—		—		12,295,584		26,599,967
Heat supply		31,807		136,675		—		—		31,807		136,675
Others		141,056		282,040		91,207		153,816		232,263		435,856
Sales related to rendering of services		44,571		96,804		48,792		116,784		93,363		213,588
Sales related to construction services		42,735		70,741		221,222		400,637		263,957		471,378
Revenue related to transfer of assets from customers		155,559		308,196		—		—		155,559		308,196

	W	12,711,312		27,494,423		361,221		671,237		13,072,533		28,165,660

[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	12,468,447		27,018,682		91,207		153,816		12,559,654		27,172,498
Performance obligations satisfied over time		242,865		475,741		270,014		517,421		512,879		993,162

	W	12,711,312		27,494,423		361,221		671,237		13,072,533		28,165,660

105

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

35.

Selling and Administrative Expenses

Selling and administrative expenses for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Salaries	W	272,753		541,141		318,683		514,778
Retirement benefit expense		24,297		48,995		26,396		45,541
Welfare and benefit expense		33,602		64,609		38,008		66,136
Insurance expense		2,399		6,719		3,743		6,323
Depreciation		40,001		107,871		53,796		106,921
Amortization of intangible assets		21,662		45,359		18,376		35,697
Bad debt expense		7,634		2,535		489		18,966
Commission		89,844		168,499		91,316		199,732
Advertising expense		6,028		12,551		6,952		12,361
Training expense		1,001		1,730		1,065		2,048
Vehicle maintenance expense		2,113		4,073		2,074		4,171
Publishing expense		816		1,675		687		1,524
Business promotion expense		745		1,451		936		1,770
Rent expense		9,539		15,951		7,635		13,221
Telecommunication expense		2,285		4,534		2,243		4,438
Transportation expense		195		377		232		660
Taxes and dues		61,516		71,178		50,183		57,331
Expendable supplies expense		1,710		3,479		1,957		3,897
Water, light and heating expense		2,265		6,078		2,452		6,931
Repairs and maintenance expense		25,286		33,767		16,801		30,414
Ordinary development expense		42,029		89,232		34,174		76,143
Travel expense		2,588		5,577		2,529		5,987
Clothing expense		1,916		2,808		2,585		3,281
Survey and analysis expense		241		407		191		379
Membership fee		475		956		435		976
Others		38,201		63,408		29,624		59,734

	W	691,141		1,304,960		713,562		1,279,360

106

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

36.

Other Income and Expenses

(1)

Other income for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Reversal of other provisions	W	4,400		6,581		18,322		19,892
Reversal of other allowance for doubtful accounts		79		79		2,441		2,465
Gains on government grants		70		198		58		129
Gains on assets contributed		6		2,911		12,047		22,484
Gains on liabilities exempted		1,625		1,722		384		1,214
Compensation and reparations revenue		20,055		53,719		20,902		40,397
Revenue from research contracts		1,788		2,066		—		682
Rental income		50,144		100,675		49,586		96,453
Others		10,969		21,094		7,268		13,816

	W	89,136		189,045		111,008		197,532

(2)

Other expenses for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Compensation and reparations expenses	W	295		595		8,465		8,778
Accretion expenses of other provisions		747		1,111		58		114
Depreciation expenses on investment properties		363		725		364		735
Depreciation expenses on idle assets		878		1,854		1,638		3,276
Other bad debt expense		3,288		7,068		7,152		7,187
Donations		60,976		67,445		78,051		89,195
Others		4,235		11,140		4,321		7,376

	W	70,782		89,938		100,049		116,661

107

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

37.

Other Gains (Losses)

Composition of other gains (losses) for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021						June 30, 2020
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Other gains
Gains on disposal of property, plant and equipment	W	13,128			22,274			—			56,163
Gains on disposal of intangible assets		—			—			1,556			1,556
Reversal of impairment losses on property, plant and equipment		—			—			6,737			6,737
Gains on foreign currency translation		—			6,606			4,853			16,872
Gains on foreign currency transactions		9,341			17,267			15,323			23,152
Gains on insurance proceeds		—			144			5,665			5,665
Others		66,230			127,998			112,712			173,955
Other losses
Losses on disposal of property, plant and equipment		(20,638	)		(29,058	)		(17,084	)		(19,253	)
Losses on disposal of intangible assets		—			(37	)		—			—
Losses on impairment of property, plant and equipment		(3,315	)		(3,315	)		(9,162	)		(9,162	)
Losses on impairment of intangible assets		—			—			(3,505	)		(3,505	)
Losses on foreign currency translation		(3,402	)		(4,167	)		(3,080	)		(11,661	)
Losses on foreign currency transactions		(7,595	)		(21,132	)		(9,526	)		(31,626	)
Others		(53,782	)		(97,102	)		(14,919	)		(57,385	)

	W	(33	)		19,478			89,570			151,508

108

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

38.

Finance Income

Finance income for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Interest income	W	53,149		107,132		64,069		130,576
Dividends income		3,780		6,143		4,044		4,085
Gains on disposal of financial assets		1,813		2,393		3,825		3,826
Gains on valuation of financial assets at fair value through profit or loss		74		2,121		3,875		10,100
Gains on valuation of derivatives		49,687		371,556		—		413,664
Gains on transaction of derivatives		14,465		54,140		67,369		107,266
Gains on foreign currency translation		21,323		76,548		264,319		116,799
Gains on foreign currency transactions		4,148		8,272		3,540		8,068
Other finance income		129		991		139		287

	W	148,568		629,296		411,180		794,671

109

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

39.

Finance Expenses

Finance expenses for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021				June 30, 2020
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Interest expense	W	456,572		919,385		504,490		1,020,873
Losses on sale of financial assets		301		385		318		365
Losses on valuation of financial assets at fair value through profit or loss		2,758		4,817		860		1,085
Losses on valuation of derivatives		—		8,411		106,766		43,436
Losses on transaction of derivatives		10,601		26,113		12,473		24,455
Losses on foreign currency translation		—		513,301		—		537,000
Losses on foreign currency transactions		3,327		16,727		58,681		62,548
Losses on repayment of financial liabilities		10		10		30		30
Others		885		2,035		842		1,430

	W	474,454		1,491,184		684,460		1,691,222

Capitalization rates for the six-month periods ended June 30, 2021 and 2020 are 2.11%~4.33% and 2.41%~4.00%, respectively.

110

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

40.

Income Taxes

Income tax expense (benefit) is calculated by adjusting adjustments recognized in the current period, changes in deferred tax assets and liabilities resulting from temporary differences, and income tax expense related to items recognized as other than profit or loss. The Group did not calculate the average effective tax rate for the current period because income tax benefit occurred, and the average effective tax rate for the previous period is 29.29%.

41.

Assets Held-for-Sale

Assets held-for-sale as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Buildings	W	16		1
Others (*)		—		924

	W	16		925

(*)

As DG Fairhaven Power, LLC were sold during the six-month period ended June 30, 2021, the assets of DG Fairhaven Power, LLC were classified as assets held-for-sale as of December 31, 2020.

111

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

42.

Expenses Classified by Nature

Expenses classified by nature for the six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		7,360,637		7,360,637
Salaries		541,141		2,096,748		2,637,889
Retirement benefit expense		48,995		236,508		285,503
Welfare and benefit expense		64,609		248,337		312,946
Insurance expense		6,719		51,636		58,355
Depreciation		107,871		5,732,524		5,840,395
Amortization of intangible assets		45,359		39,524		84,883
Bad debts expense		2,535		—		2,535
Commission		168,499		140,992		309,491
Advertising expense		12,551		3,229		15,780
Training expense		1,730		4,433		6,163
Vehicle maintenance expense		4,073		3,654		7,727
Publishing expense		1,675		1,405		3,080
Business promotion expense		1,451		1,578		3,029
Rent expense		15,951		74,258		90,209
Telecommunication expense		4,534		5,884		10,418
Transportation expense		377		15,288		15,665
Taxes and dues		71,178		316,657		387,835
Expendable supplies expense		3,479		20,272		23,751
Water, light and heating expense		6,078		18,710		24,788
Repairs and maintenance expense		33,767		1,068,637		1,102,404
Ordinary development expense		89,232		222,838		312,070
Travel expense		5,577		33,719		39,296
Clothing expense		2,808		2,888		5,696
Survey and analysis expense		407		1,651		2,058
Membership fee		956		7,741		8,697
Power purchase		—		9,309,438		9,309,438
Others		63,408		463,210		526,618

	W	1,304,960		27,482,396		28,787,356

112

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

42.

Expenses Classified by Nature, Continued

Expenses classified by nature for the six-month periods ended June 30, 2021 and 2020 are as follows, continued:


In millions of won	June 30, 2020
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		6,884,401		6,884,401
Salaries		514,778		2,033,503		2,548,281
Retirement benefit expense		45,541		211,012		256,553
Welfare and benefit expense		66,136		235,490		301,626
Insurance expense		6,323		46,967		53,290
Depreciation		106,921		5,534,870		5,641,791
Amortization of intangible assets		35,697		41,913		77,610
Bad debt expense		18,966		—		18,966
Commission		199,732		155,890		355,622
Advertising expense		12,361		3,179		15,540
Training expense		2,048		4,306		6,354
Vehicle maintenance expense		4,171		3,512		7,683
Publishing expense		1,524		1,482		3,006
Business promotion expense		1,770		1,818		3,588
Rent expense		13,221		82,596		95,817
Telecommunication expense		4,438		5,087		9,525
Transportation expense		660		2,498		3,158
Taxes and dues		57,331		278,455		335,786
Expendable supplies expense		3,897		20,765		24,662
Water, light and heating expense		6,931		15,483		22,414
Repairs and maintenance expense		30,414		1,119,904		1,150,318
Ordinary development expense		76,143		223,228		299,371
Travel expense		5,987		31,709		37,696
Clothing expense		3,281		3,393		6,674
Survey and analysis expense		379		1,491		1,870
Membership fee		976		6,726		7,702
Power purchase		—		8,295,057		8,295,057
Others		59,734		821,201		880,935

	W	1,279,360		26,065,936		27,345,296

113

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

43.

Earnings (Loss) Per Share

(1)

Basic earnings (loss) per share for the three and six-month periods ended June 30, 2021 and 2020 are as follows:

In won

June 30, 2021

June 30, 2020

Type

Three-month
period ended

Six-month
period ended

Three-month
period ended

Six-month
period ended

Basic earnings (loss) per share

(1,084

)

(950

)

259

295

(2)

Net profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won except number of shares	June 30, 2021						June 30, 2020
Type	Three-month period ended			Six-month period ended			Three-month period ended		Six-month period ended
Net profit (loss) attributable to controlling interest	W	(695,836	)		(610,120	)		166,212		189,191
Profit (loss) used in the calculation of total basic earnings per share		(695,836	)		(610,120	)		166,212		189,191
Weighted average number of common shares		641,964,077			641,964,077			641,964,077		641,964,077

(3)

Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2021 and 2020 are as follows:


In number of shares	June 30, 2021				June 30, 2020
Type	Three-Month period ended		Six-month period ended		Three-month period ended		Six-month period ended
The number of common shares issued at beginning of the year		641,964,077		641,964,077		641,964,077		641,964,077
Weighted average number of common shares		641,964,077		641,964,077		641,964,077		641,964,077

(4)

There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the three and six-month periods ended June 30, 2021 and 2020.

114

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management

(1)

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021			December 31, 2020
Total borrowings and debt securities	W	73,931,469			69,724,581
Cash and cash equivalents		2,727,459			2,029,584

Net borrowings and debt securities		71,204,010			67,694,997

Total equity		69,692,707			70,666,846

Debt to equity ratio		102.17	%		95.79	%

(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 are 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.

115

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021		December 31, 2020
Cash and cash equivalents	W	2,727,459		2,029,584
Financial assets at fair value through profit or loss (*1)		2,666,720		1,808,404
Derivative assets (trading)		239,568		110,764
Financial assets at amortized cost		15,364		14,422
Loans		873,885		790,162
Long-term/short-term financial instruments		1,418,127		2,062,103
Derivative assets (applying hedge accounting)		126,602		55,649
Trade and other receivables		9,266,075		9,780,039
Financial guarantee contracts (*2)		3,358,227		3,224,696

(*1)	Equity investments held by the Group are excluded.

(*2)	Maximum exposure associated with the financial guarantee contracts is the maximum amounts of the obligation.

As of the reporting date, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.

(ii)

Market risk

Market risk is the risk that the Group’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, currency risk and other price risk.

116

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

(iii)

Sensitivity analysis

Significant assets and liabilities with uncertainties in underlying assumptions

①

Defined benefit obligation

A sensitivity analysis of defined benefit obligation assuming a 1%p increase and decrease movements in the actuarial valuation assumptions as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won		June 30, 2021						December 31, 2020
Type	Accounts	1%p Increase			1%p Decrease			1%p Increase			1%p Decrease
Future salary increases	Increase (decrease) in defined benefit obligation	W	492,738			(431,552	)		488,087			(425,708	)
Discount rate	Increase (decrease) in defined benefit obligation		(428,041	)		503,349			(443,527	)		524,856

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the six-month periods ended June 30, 2021 and 2020 are W12,911 million and W10,461 million, respectively.

②

Provisions

Changes in provisions due to movements in underlying assumptions as of June 30, 2021 and December 31, 2020 are as follows:


Type	Accounts	June 30, 2021			December 31, 2020
PCBs	Inflation rate		1.06	%		1.06	%
	Discount rate		1.83	%		1.83	%
Nuclear plants	Inflation rate		1.07	%		1.07	%
	Discount rate		2.20	%		2.20	%
Spent fuel	Inflation rate		2.93	%		2.93	%
	Discount rate		4.49	%		4.49	%

A sensitivity analysis of provisions assuming a 0.1%p increase and decrease movements in the underlying assumptions as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won		June 30, 2021						December 31, 2020
Type	Accounts	0.1%p Increase			0.1%p Decrease			0.1%p Increase			0.1%p Decrease
Discount rate	PCBs	W	(234	)		235			(292	)		293
	Nuclear plants		(322,215	)		331,993			(326,926	)		336,928
	Spent fuel		(51,455	)		53,463			(51,558	)		53,571
Inflation rate	PCBs		237			(236	)		295			(294	)
	Nuclear plants		361,586			(351,248	)		357,676			(347,450	)
	Spent fuel		54,236			(52,269	)		54,345			(52,375	)

117

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Management judgment effected by uncertainties in underlying assumptions

①

Foreign currency risk

The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as of June 30, 2021 and December 31, 2020 are as follows:


In thousands of foreign currencies	Assets				Liabilities
Type	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
AED		68,956		39,678		34,066		31,594
AUD		132		133		711,670		707,538
BDT		46,021		93,442		—		—
BWP		961		890		—		—
EGP		—		—		773		948
CAD		87		247		2,587		1,840
CHF		—		—		500,382		500,406
CZK		—		—		1,720		2,033
EUR		853		310		53,769		121,069
GBP		—		—		93		43
HKD		—		—		1,651,598		1,651,839
IDR		826,563		342,496		477,279		555,241
INR		1,413,986		1,231,895		144,307		155,134
JOD		1,766		1,673		3		—
JPY		900,177		825,269		4,929		484,585
KZT		1,510		1,510		—		—
MGA		6,908,841		5,645,349		—		—
MMK		199,053		11,032		—		—
MYR		36,289		—		—		—
PHP		285,746		191,122		118,101		104,161
PKR		414,546		371,328		1,972		12,222
SAR		2,407		2,178		—		—
SEK		—		—		450,355		449,824
USD		1,339,037		1,445,522		12,509,471		12,234,563
UYU		136,066		78,265		1,811		1,585
VND		777,527		672,563		—		—
ZAR		5,411		303		—		—

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021					December 31, 2020
Type	10% Increase			10% Decrease		10% Increase			10% Decrease
Increase (decrease) of profit before income tax	W	(1,414,795	)		1,414,795		(1,336,821	)		1,336,821
Increase (decrease) of equity (*)		(1,414,795	)		1,414,795		(1,336,821	)		1,336,821

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of June 30, 2021 and December 31, 2020.

118

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (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 forward agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Group enters into currency forward agreements.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of June 30, 2021, the hedging instrument (cross-currency swap) hedges the risk of the hedged item (repayment of foreign debt securities and others).

②

Interest rate risk

The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1%p increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The Group’s borrowings and debt securities with floating interest rates as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
Type	June 30, 2021		December 31, 2020
Short-term borrowings	W	201,471		171,518
Long-term borrowings		2,151,477		2,191,322
Debt securities		254,658		250,968

	W	2,607,606		2,613,808

A sensitivity analysis on the Group’s long-term borrowings and debt securities assuming a 1%p increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021					December 31, 2020
Type	1%p Increase			1%p Decrease		1%p Increase			1%p Decrease
Increase (decrease) of profit before income tax	W	(13,038	)		13,038		(26,138	)		26,138
Increase (decrease) of shareholder’s equity (*)		(13,038	)		13,038		(26,138	)		26,138

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

119

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

③

Electricity rates risk

The Group is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

A sensitivity analysis on the Group’s income for the period assuming a 1% increase and decrease in price of electricity for the six-month periods ended June 30, 2021 and 2020 is as follows:


In millions of won	June 30, 2021					June 30, 2020
Type	1% Increase		1% Decrease			1% Increase		1% Decrease
Increase (decrease) of profit before income tax	W	268,765		(268,765	)		266,000		(266,000	)
Increase (decrease) of shareholder’s equity (*)		268,765		(268,765	)		266,000		(266,000	)

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

(iv)

Liquidity risk

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by continuously monitoring forecasted and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

In addition, the Group has established credit lines on its trade financing and bank overdrafts, and through payment guarantees it has received, it maintains an adequate credit (borrowing) line. In addition, the Group has the ability to utilize excess cash or long-term borrowings for major construction investments.

The expected maturities for non-derivative financial liabilities as of June 30, 2021 and December 31, 2020 in detail are as follows:


In millions of won	June 30, 2021
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	16,670,586		10,830,861		25,808,285		32,911,596		86,221,328
Lease liabilities		598,721		594,551		1,530,206		2,310,810		5,034,288
Trade and other payables		6,232,875		389,386		919,688		1,173,718		8,715,667
Financial guarantee contracts (*)		22,054		358,730		2,777,526		199,917		3,358,227

	W	23,524,236		12,173,528		31,035,705		36,596,041		103,329,510


In millions of won	December 31, 2020
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	12,413,346		10,919,041		24,778,020		34,215,888		82,326,295
Lease liabilities		614,442		569,161		1,564,377		2,461,557		5,209,537
Trade and other payables		5,679,856		373,907		894,903		1,167,171		8,115,837
Financial guarantee contracts (*)		926,244		348,860		26,230		1,923,362		3,224,696

	W	19,633,888		12,210,969		27,263,530		39,767,978		98,876,365

(*)	This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of June 30, 2021 and December 31, 2020 are W87,831 million and W66,354 million, respectively.

120

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

The following table shows the details of maturities of non-derivative financial liabilities as of June 30, 2021 and December 31, 2020. This table, based on the undiscounted cash flows of the non-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

The expected maturities for non-derivative financial assets as of June 30, 2021 and December 31, 2020 in detail are as follows:


In millions of won	June 30, 2021
Type	Less than 1 year		1~5 Years		More than 5 years		Other		Total
Cash and cash equivalents	W	2,727,459		—		—		—		2,727,459
Financial assets at fair value through other comprehensive income		—		—		—		391,899		391,899
Financial assets at amortized cost		14,154		1,205		5		—		15,364
Loans		77,629		379,717		447,651		—		904,997
Long-term/short-term financial instruments		808,250		262,890		418		346,569		1,418,127
Financial assets at fair value through profit or loss		2,044,847		333		1,188		699,114		2,745,482
Trade and other receivables		7,454,749		1,053,549		762,665		—		9,270,963

	W	13,127,088		1,697,694		1,211,927		1,437,582		17,474,291


In millions of won	December 31, 2020
Type	Less than 1 year		1~5 Years		More than 5 years		Other		Total
Cash and cash equivalents	W	2,029,584		—		—		—		2,029,584
Financial assets at fair value through other comprehensive income		—		—		—		358,559		358,559
Financial assets at amortized cost		13,149		1,265		8		—		14,422
Loans		78,805		385,571		325,212		31,506		821,094
Long-term/short-term financial instruments		1,483,482		252,349		386		325,886		2,062,103
Financial assets at fair value through profit or loss		1,196,101		—		2,690		682,591		1,881,382
Trade and other receivables		7,920,005		1,160,400		704,494		—		9,784,899

	W	12,721,126		1,799,585		1,032,790		1,398,542		16,952,043

121

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	—			—			—			—			—
Gross settlement
- Trading		1,449			7,801			(60,202	)		(3,449	)		(54,401	)
- Hedging		(25,076	)		(6,479	)		(21,368	)		(35,946	)		(88,869	)

	W	(23,627	)		1,322			(81,570	)		(39,395	)		(143,270	)


In millions of won	December 31, 2020
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	—			—			—			—			—
Gross settlement
- Trading		(12,777	)		(22,827	)		(118,704	)		(4,380	)		(158,688	)
- Hedging		(37,858	)		(39,528	)		(75,450	)		(55,208	)		(208,044	)

	W	(50,635	)		(62,355	)		(194,154	)		(59,588	)		(366,732	)

122

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk

The fair value of the Group’s actively-traded financial instruments (i.e., FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Group uses that technique.

For trade receivables and payables, the Group considers the carrying value net of impairment as fair value. While for disclosure purposes, the fair value of financial liabilities is estimated by discounting a financial instruments with similar contractual cash flows based on the effective interest method.

(i)

Fair value and book value of financial assets and liabilities as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
Type	Book value		Fair value		Book value		Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income	W	391,899		391,899		358,559		358,559
Derivative assets (trading)		239,568		239,568		110,764		110,764
Derivative assets (applying hedge accounting)		126,602		126,602		55,649		55,649
Financial assets at fair value through profit or loss		2,745,482		2,745,482		1,881,382		1,881,382

	W	3,503,551		3,503,551		2,406,354		2,406,354

Assets carried at amortized cost
Financial assets at amortized cost	W	15,364		15,364		14,422		14,422
Loans and receivables		873,885		873,885		790,162		790,162
Trade and other receivables		9,266,075		9,266,075		9,780,039		9,780,039
Long-term financial instruments		609,877		609,877		578,621		578,621
Short-term financial instruments		808,250		808,250		1,483,482		1,483,482
Cash and cash equivalents		2,727,459		2,727,459		2,029,584		2,029,584

	W	14,300,910		14,300,910		14,676,310		14,676,310

Liabilities recognized at fair value
Derivative liabilities (trading)	W	59,655		59,655		157,926		157,926
Derivative liabilities (applying hedge accounting)		79,963		79,963		207,193		207,193

	W	139,618		139,618		365,119		365,119

Liabilities carried at amortized cost
Secured borrowings	W	190,789		190,789		63,614		63,614
Unsecured bond		65,470,836		69,556,325		64,607,401		68,839,316
Lease liabilities		4,476,230		4,476,230		4,621,096		4,621,096
Unsecured borrowings		8,269,844		8,124,477		4,808,206		5,513,242
Trade and other payables (*)		8,715,667		8,715,667		8,115,837		8,115,837
Bank overdraft		—		—		245,360		245,360

	W	87,123,366		91,063,488		82,461,514		87,398,465

(*)	Excludes lease liabilities.

123

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk, continued

(ii)

Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount rate used for calculating fair value as of June 30, 2021 and December 31, 2020 are as follows:


Type	June 30, 2021	December 31, 2020
Derivatives	(-) 0.70% ~ 3.08%	(-) 0.73% ~ 3.08%
Borrowings and debt securities	(-) 1.81% ~ 4.38%	(-) 0.53% ~ 4.38%
Leases	0.22% ~ 16.83%	0.57% ~ 16.60%

(iii)

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.


Level 1:		Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2:		Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3:		Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	226,032		—		165,867		391,899
Derivative assets		—		366,170		—		366,170
Financial assets at fair value through profit or loss		—		2,739,697		5,785		2,745,482

	W	226,032		3,105,867		171,652		3,503,551

Financial liabilities at fair value
Derivative liabilities	W	—		139,618		—		139,618


In millions of won	December 31, 2020
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	194,670		—		163,889		358,559
Derivative assets		—		166,413		—		166,413
Financial assets at fair value through profit or loss		—		1,875,690		5,692		1,881,382

	W	194,670		2,042,103		169,581		2,406,354

Financial liabilities at fair value
Derivative liabilities	W	—		365,119		—		365,119

The fair value of financial assets (FVTPL and FVOCI) publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted financial assets (FVTPL and FVOCI) is calculated using the valuation results from an external pricing service in which weighted average borrowing rates of interest of evaluated companies are used as a discount rate. The fair value of derivatives is measured using valuation model which is determined at the present value of estimated future cash flows discounted at current market interest rate.

124

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the six-month period ended June 30, 2021 and for the year ended December 31, 2020 are as follows:


In millions of won	June 30, 2021
	Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation			Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,692		—		—		93			—			—			5,785
Financial assets at fair value through other comprehensive income Unlisted securities		163,889		3,376		—		(309	)		(13	)		(1,076	)		165,867


In millions of won	December 31, 2020
	Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation		Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,156		359		—		623			(446	)		—		5,692
Financial assets at fair value through other comprehensive income Unlisted securities		177,968		2,900		—		(23,128	)		(1	)		6,150		163,889

125

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

45.

Service Concession Arrangements

(1)

Gas Complex - Thermal Power Plant at Ilijan, Philippines (BOT)

(i)

Significant terms and concession period of the arrangement

The Group has entered into a contract with National Power Corporation (the “NPC”), based in the Republic of the Philippines whereby the Group can collect the electricity rates which are composed of fixed costs and variable costs during the concession period from 2002 to 2022 after building, rehabilitating, and operating the power plant.

(ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2002 to 2022. At the end of the concession period, the Group has an obligation to transfer its ownership of the power plant to NPC.

(iii)

The Group’s expected future collections of service concession arrangements as of June 30, 2021 are as follows:


In millions of won
Type	Amounts
Less than 1 year	W	108,197

(2)

Hydroelectric Power Generation at Semangka, Indonesia (BOT)

(i)

Significant terms and concession period of the arrangement

The Group has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Group provides electricity generated and charge tariff rates designed to recover capital cost, fixed O&M cost, water usage cost, variable O&M cost and special facilities cost during the concession period after building, rehabilitating, and operating the power plant for approximately 30 years (2018~2048) subsequent to the completion of plant construction.

(ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2018 to 2048. At the end of the concession period, PT PLN has an option to take over the ownership of the power plant from the Group.

(iii)

The Group’s expected future collections of service concession arrangements as of June 30, 2021 are as follows:


In millions of won
Type	Amounts
Less than 1 year	W	28,179
1 ~ 2 years		28,211
2 ~ 3 years		28,341
Over 3 years		528,440

	W	613,171

126

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties

(1)

Related parties of the Group as of June 30, 2021 are as follows:


Type		Related party
Parent		Republic of Korea government

Subsidiaries (144 subsidiaries)		Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., Korea Imouraren Uranium Investment Corp., 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., KOSEP USA, 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, EWPRC Biomass Holdings, LLC, Hee mang sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., KOEN Bylong Pty., Ltd., KOWEPO Bylong Pty., Ltd., KOSPO Bylong Pty., Ltd., EWP Bylong Pty., Ltd., KOWEPO Lao International, KOMIPO Bylong Pty., Ltd., Energy New Industry Specialized Investment Private Investment Trust., KEPCO US Inc., KEPCO Alamosa LLC, KEPCO Solar of Alamosa LLC, 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., KEPCO Mangilao America LLC, 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, TS Energy No. 25 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, Elara Development, LLC, Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., Prime Swedish Holding AB

Associates (85 associates)		Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Taebaek Wind Power Co., Ltd., Taebaek Guinemi Wind Power Co., Ltd., Pyeongchang Wind Power Co., Ltd., Daeryun Power Co., Ltd., Changjuk Wind Power Co., Ltd., KNH Solar Co., Ltd., S-Power Co., Ltd., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Korea Nuclear Partners Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., Yaksu ESS Co., Ltd., PND Solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., KPGE Inc., 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., Jeju SolarOne Co., Ltd., Goesan Solar Park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., KOSTURE Co., Ltd., Digital Innovation Growth Fund

127

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(1)

Related parties of the Group as of June 30, 2021 are as follows, continued:


Type		Related party

Joint ventures (90 joint ventures)		Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Jeongam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P., ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co., Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Chile Solar JV SpA, Taebaek Gadeoksan Wind Power Co., 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., Sam-Yang Photovoltaic Power Co., Ltd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., DAYONE Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco LLC, 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.

Other		Korea Development Bank

128

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(2)	Transactions between the Group and its subsidiaries are eliminated during the consolidation and are not disclosed in notes.

(3)

Related party transactions for the six-month periods ended June 30, 2021 and 2020 are as follows:

<Sales and Others>


In millions of won		Sales and others
Company name	Transaction type	June 30, 2021		June 30, 2020
<Associates>
Korea Gas Corporation	Electricity sales	W	48,774		50,712
GS Donghae Electric Power Co., Ltd.	Electricity sales		10,778		16,120
Dongducheon Dream Power Co., Ltd.	Electricity sales		8,565		4,262
Shin Pyeongtaek Power Co., Ltd.	Electricity sales		13,992		12,174
Hyundai Green Power Co., Ltd.	Electricity sales, design service and others		10,138		11,632
S-Power Co., Ltd.	Service		2,986		3,305
Korea Electric Power Industrial Development Co., Ltd.	Service		6,105		6,474
Korea Power Exchange	Service		10,958		13,750
Daeryun Power Co., Ltd.	Electricity sales		933		978
Goseong Green Power Co., Ltd.	Electricity sales		131,182		10,313
Gangwon Wind Power Co., Ltd.	Electricity sales		1,766		2,045
PT. Cirebon Electric Power	Others		9,503		6,087
Busan Green Energy Co., Ltd.	Electricity sales		32		9
Hyundai Eco Energy Co., Ltd.	Electricity sales		81		79
PT. Bayan Resources TBK	Others		80,660		—
Samcheok Eco Materials Co., Ltd.	Electricity sales		297		362
SPC Power Corporation	Others		13,177		5,564
Noeul Green Energy Co., Ltd.	Electricity sales		15		15
Gangneung Eco Power Co., Ltd.	Service		6,499		4,662
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 41 others)	Electricity sales		6,480		14,753

<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity sales		1,150		1,328
KAPES, Inc.	Commission		191		185
Daegu Green Power Co., Ltd.	Electricity sales		513		715
Daesan Green Energy Co., Ltd.	Electricity sales		299		37
Nawah Energy Company	Service		43,708		66,901
KEPCO SPC Power Corporation	Others		24,838		16,879
Amman Asia Electric Power Company	Others		5,044		8,606
Seokmun Energy Co., Ltd.	Service		1,034		1,255
Yeongam Solar Power Co., Ltd.	Electricity sales		159		41
Solaseado Solar Power Co., Ltd.	Electricity sales		—		942
Yeonggwang Wind Power Co., Ltd.	Electricity sales		438		461
Rabigh Electricity Company	Service		191		576
Kelar S.A.	Service		8,486		1,919
Cheongna Energy Co., Ltd.	Electricity sales		8,752		4,347
Datang Chifeng Renewable Power Co., Ltd	Others		—		13,453
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales		903		963
Others (Busan Shinho Solar Power Co., Ltd. and 46 others)	Electricity sales		394,516		373,205

<Others>
Korea Development Bank	Electricity sales		1,987		1,770
	Interest income		491		2,961

129

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(3)

Related party transactions for the six-month periods ended June 30, 2021 and 2020 are as follows, continued:

<Purchase and Others>


In millions of won		Purchase and others
Company name	Transaction type	June 30, 2021		June 30, 2020

<Associates>
Korea Gas Corporation	Fuel purchase	W	2,258,103		1,806,750
GS Donghae Electric Power Co., Ltd.	Electricity purchase		332,009		325,469
Dongducheon Dream Power Co., Ltd.	Electricity purchase		296,912		242,996
Shin Pyeongtaek Power Co., Ltd.	Electricity purchase		261,866		302,787
Hyundai Green Power Co., Ltd.	Design service		—		219,728
S-Power Co., Ltd.	Service		255,323		208,163
Korea Electric Power Industrial Development Co., Ltd.	Service		125,884		115,561
Korea Power Exchange	Service		42,705		44,372
Daeryun Power Co., Ltd.	Electricity purchase		58,704		44,222
Goseong Green Power Co., Ltd.	Electricity purchase		210,694		—
Gangwon Wind Power Co., Ltd.	Electricity purchase		8,948		11,859
Busan Green Energy Co., Ltd.	Electricity purchase		7,138		10,918
Hyundai Eco Energy Co., Ltd.	Electricity purchase		8,850		9,809
Samcheok Eco Materials Co., Ltd.	Electricity purchase		4,616		4,793
Noeul Green Energy Co., Ltd.	Electricity purchase		3,998		6,172
Gangneung Eco Power Co., Ltd.	Service		—		113
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 41 others)	Electricity purchase		77,963		22,203

<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity purchase		140,058		126,069
KAPES, Inc.	Commission		36,875		145,011
Daegu Green Power Co., Ltd.	Electricity purchase		124,102		114,980
Daesan Green Energy Co., Ltd.	Electricity purchase		52,188		—
Amman Asia Electric Power Company	Others		—		102
Seokmun Energy Co., Ltd.	Service		21,198		21,274
Yeongam Solar Power Co., Ltd.	Electricity purchase		4,947		—
Solaseado Solar Power Co., Ltd.	Electricity purchase		18,205		—
Yeonggwang Wind Power Co., Ltd.	Electricity purchase		8,732		6,397
Cheongna Energy Co., Ltd.	Electricity purchase		62		67
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity purchase		6,882		2,931
Others (Busan Shinho Solar Power Co., Ltd. and 46 others)	Electricity purchase		37,595		24,830

<Others>
Korea Development Bank	Interest expense		1,430		4,974
	Dividends		256,870		—

130

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(4)

Receivables and payables arising from related party transactions as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won		Receivables				Payables
Company name	Type	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
<Associates>
Korea Gas Corporation	Trade receivables	W	7,569		9,969		—		—
	Non-trade receivables and others		37		95		—		—
	Trade payables		—		—		432,845		428,763
	Non-trade payables and others		—		—		84		617
GS Donghae Electric power Co., Ltd.	Trade receivables		361		386		—		—
	Non-trade receivables and others		8,031		321		—		—
	Trade payables		—		—		89,052		91,213
	Non-trade payables and others		—		—		4		36
Goseong Green Power Co., Ltd.	Trade receivables		1,621		2,181		—		—
	Non-trade receivables and others		10,942		9,214		—		—
	Trade payables		—		—		71,485		—
	Non-trade payables and others		—		—		62,475		64,986
Korea Power Exchange	Trade receivables		953		1,608		—		—
	Non-trade receivables and others		—		24		—		—
	Trade payables		—		—		1,218		1,362
	Non-trade payables and others		—		—		55,589		70,456
Dongducheon Dream Power Co., Ltd.	Trade receivables		4,530		388		—		—
	Non-trade receivables and others		243		213		—		—
	Trade payables		—		—		33,117		65,794
Shin Pyeongtaek Power Co., Ltd.	Trade receivables		1,335		1,348		—		—
	Non-trade receivables and others		2,530		2,823		—		—
	Trade payables		—		—		51,164		47,948
	Non-trade payables and others		—		—		236		85
S-Power Co., Ltd.	Trade receivables		77		137		—		—
	Non-trade receivables and others		48		46		—		—
	Trade payables		—		—		42,403		23,415
	Non-trade payables and others		—		—		20		—
Daeryun Power Co., Ltd.	Trade receivables		134		189		—		—
	Trade payables		—		—		13,284		16,079
Busan Green Energy Co., Ltd.	Trade receivables		5		5		—		—
	Non-trade receivables and others		18,260		13,946		—		—
Hyundai Green Power Co., Ltd.	Trade receivables		229		554		—		—
	Trade payables		—		—		—		9,825
Others (Korea Electric Power Industrial Development Co., Ltd. and 35 others)	Trade receivables		1,563		1,576		—		—
	Non-trade receivables and others		9,302		8,165		—		—
	Trade payables		—		—		7,015		4,996
	Non-trade payables and others		—		—		7,800		4,785

131

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(4)

Receivables and payables arising from related party transactions as of June 30, 2021 and December 31, 2020 are as follows, continued:


In millions of won		Receivables				Payables
Company name	Type	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
<Joint ventures>
Nawah Energy Company	Trade receivables	W	45,509		49,280		—		—
	Non-trade receivables and others		3,139		2,062		—		—
Chun-cheon Energy Co., Ltd.	Trade receivables		103		98		—		—
	Non-trade receivables and others		330		165		—		—
	Trade payables		—		—		22,988		27,428
Daegu Green Power Co., Ltd.	Trade receivables		57		44		—		—
	Non-trade receivables and others		72		55		—		—
	Trade payables		—		—		19,467		26,213
KAPES, Inc.	Trade receivables		1		2		—		—
	Non-trade receivables and others		—		5,172		—		—
	Non-trade payables and others		—		—		4,677		20,577
Seokmun Energy Co., Ltd.	Trade receivables		29		62		—		—
	Non-trade receivables and others		141		9,460		—		—
	Trade payables		—		—		6,316		4,898
	Non-trade payables and others		—		—		—		9,559
DAYONE Energy Co., Ltd.	Trade receivables		55		57		—		—
	Non-trade receivables and others		11,477		11,749		—		—
	Trade payables		—		—		501		10
	Non-trade payables and others		—		—		9,527		9,119
Amman Asia Electric Power Company	Non-trade payables and others		—		—		20,474		20,134
Yeongam Solar Power Co., Ltd.	Trade receivables		23		26		—		—
	Trade payables		—		—		—		14,652
Kelar S.A.	Trade receivables		2,966		2,183		—		—
	Non-trade receivables and others		13,423		10,893		—		—
Others (Daesan Green Energy Co., Ltd. and 30 others)	Trade receivables		24,235		9,014		—		—
	Non-trade receivables and others		19,600		9,228		—		—
	Trade payables		—		—		2,688		12,136
	Non-trade payables and others		—		—		1,714		92,780

<Others>
Korea Development Bank	Accrued interest income		175		51		—		—
	Non-trade receivables and others		103,035		206,916		—		—
	Non-trade payables and others		—		—		108		123
	Derivatives		33,913		20,167		9,792		20,001

132

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(5)

Loans and others arising from related party transactions as of June 30, 2021 and December 31, 2020 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	27,149			34		—			968			28,151
	(Allowance for doubtful accounts)		(5,246	)		—		—			(1,286	)		(6,532	)
Associates	Xe-Pian Xe-Namnoy Power Co., Ltd.		19,692			—		—			760			20,452
Associates	PT Wampu Electric Power		12,358			—		(662	)		915			12,611
Associates	Gunsan Bio Energy Co., Ltd.		12,396			—		—			—			12,396
	(Allowance for doubtful accounts)		(10,128	)		—		—			—			(10,128	)
Associates	Bigeum Resident Photovoltaic Power Co., Ltd.		3,500			757		—			—			4,257
Associates	Daejung Offshore Wind Power Co., Ltd.		1,000			—		—			—			1,000
Associates	Bitgoel Eco Energy Co., Ltd.		—			8,673		—			—			8,673
Joint ventures	Solaseado Solar Power Co., Ltd.		64,000			—		—			—			64,000
Joint ventures	Recursos Solares PV de Mexico II, S.A. de C.V.		4,844			1,175		(283	)		189			5,925
Joint ventures	Horus Solar, S.A. de C.V.		13,380			1,253		(843	)		520			14,310
Joint ventures	Sunmex Renovables, S.A. de C.V.		1,842			1,293		—			66			3,201
Joint ventures	Kelar S.A.		39,616			—		—			1,869			41,485
Joint ventures	DE Energia SpA		6,232			—		—			241			6,473
Joint ventures	Daehan Wind Power PSC		10,700			1,927		—			407			13,034
Joint ventures	PT. Tanjung Power Indonesia		705			156		—			27			888
Joint ventures	Bitsolar Energy Co., Ltd.		3,165			—		—			—			3,165
Joint ventures	Pulau Indah Power Plant Sdn. Bhd.		—			10,007		—			(403	)		9,604
Joint ventures	Guadalupe Solar SpA		—			1,633		—			—			1,633
Joint ventures	Foresight Iberian Solar Group Holding, S.L.		—			5,481		—			50,519			56,000

		W	205,205			32,389		(1,788	)		54,792			290,598

(6)

Borrowings arising from related party transactions as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won
Related parties	Type	December 31, 2020		Borrowings		Repayment			Others			June 30, 2021
Korea Development Bank	Facility	W	50,293		—		(5,414	)		—			44,879
	Others		2,946		—		(219	)		—			2,727
	Operating funds		144,300		—		(100,000	)		—			44,300
	Syndicated Loan		15,923		—		(1,038	)		(469	)		14,416
	EBL		40,093		24,771		—			1,820			66,684

		W	253,555		24,771		(106,671	)		1,351			173,006

133

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of June 30, 2021 are as follows:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Guarantee
Korea Electric Power Corporation	Shuweihat Asia Operation & Maintenance Company	Performance guarantees	USD	11,000	Shuweihat Asia Power Investment B.V.
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	USD	1,387	Rabigh Electricity Company
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees	USD	70,000	SMBC Ho Chi Minh and others
		Debt guarantees	USD	285,000	SMBC Singapore
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	4,439,920
Korea Electric Power Corporation	RE Holiday Holdings LLC	Performance guarantees (*11)	USD	206,494	EFS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation	RE Pioneer Holdings LLC	Performance guarantees	USD	158,718	EFS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation	RE Barren Ridge 1 Holdings LLC	Performance guarantees (*11)	USD	135,783	Firstar Development, LLC, Santander Bank and others
Korea Electric Power Corporation	Rabigh Electricity Company	Performance guarantees for other business	SAR	6,508	Hana Bank
		Performance guarantees	SAR	68,054
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees	USD	100,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company	Performance guarantees	USD	16,800	Shinhan Bank
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested	KRW	10,751	Kookmin Bank and others
		Guarantees for supplemental funding and others (*1)		—
Korea Western Power Co., Ltd.	Xe-Pian Xe-Namnoy Power Co., Ltd.	Payment guarantees for business reserve	USD	2,500	Krung Thai Bank
		Collateralized money invested	KRW	71,749
		Impounding bonus guarantees	USD	5,000	SK E&C
Korea Western Power Co., Ltd.	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	SAR	11,200	National Bank of Kuwait
Korea Western Power Co., Ltd.	Daegu Photovoltaic Co., Ltd.	Collateralized money invested	KRW	2,120	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested (*6)	KRW	39,415	Kookmin Bank and others
		Debt guarantees	KRW	20,300	BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested	KRW	1,576	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested	KRW	209	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested	KRW	76,872	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Haemodum Solar Co., Ltd.	Collateralized money invested	KRW	3,100	Nonghyup Bank
Korea Western Power Co., Ltd.	Sam-Yang Photovoltaic Power Co., Ltd.	Collateralized money invested	KRW	5,645	Korea Development Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Muan Solar Park Co., Ltd.	Collateralized money invested	KRW	5,041	IBK and others
Korea Western Power Co., Ltd.	Anjwa Smart Farm & Solar City Co., Ltd.	Collateralized money invested	KRW	6,299	Hana Bank and others
		Guarantees for supplemental funding (*1)		—

134

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of June 30, 2021 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Guarantee
Korea Western Power Co., Ltd.	Seoroseoro Sunny Power Plant Co., Ltd.	Collateralized money invested	KRW	696	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	YuDang Solar Co., Ltd.	Collateralized money invested	KRW	484	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Yeongwol Eco Wind Co., Ltd.	Collateralized money invested	KRW	3,089	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Collateralized money invested	KRW	386	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Hapcheon Floating Photovoltaic Power Plant Inc.	Collateralized money invested	KRW	6,925	Nonghyup Bank and others
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested	KRW	5,453	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested	KRW	14,688	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested	KRW	25,544	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	3,933	Shinhan Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested	KRW	253,294	Korea Development Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested	KRW	3,157	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested	KRW	15,313	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested	KRW	23,342	IBK
		Guarantees for supplemental funding (*1)	KRW	18,989
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested	KRW	14,279	Samsung Fire & Marine Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Debt guarantees	USD	24,544	Sumitomo mitsui banking
		Other guarantees	USD	3,150	PT Adaro Indonesia
		Guarantees for supplemental funding (*1)		—	Sumitomo mitsui banking and others
		Collateralized money invested	KRW	41,295	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees	USD	14,400	Credit Agricole Corporate & Investment Bank Seoul
		Collateralized money invested	KRW	36,573	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested	KRW	8,503	Mirae Asset Daewoo Co., Ltd. and others
		Collateralized loans	USD	5,728
		Payment guarantees (*9)	USD	1,066	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.	Busan Industrial Solar Power Co., Ltd.	Collateralized money invested	KRW	437	Shinhan Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Yangyang Wind Power Co., Ltd.	Collateralized money invested	KRW	10,397	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested	KRW	2,125	Shinhan Bank and others
		Performance guarantees and guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested	KRW	26,368	Korea Development Bank and others
		Guarantees for supplemental funding and others (*1)	KRW	8,000

135

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of June 30, 2021 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Guarantee
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested	KRW	22,432	Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Kelar S.A.	Performance guarantees	USD	57,987	Hana Bank, MUFG
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Performance guarantees	USD	3,600	Shinhan Bank
		Payment guarantees (*8)	USD	1,898	Hana Bank
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested	KRW	5,159	Woori Bank and Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested	KRW	3,316	IBK
Korea Southern Power Co., Ltd.	Samcheok Eco Materials Co., Ltd.	Payment guarantees (*3)		—	SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.	Solaseado Solar Power Co., Ltd.	Collateralized money invested	KRW	6,915	Kookmin Bank and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	Collateralized money invested (*10)		—	IBK and others
		Guarantees for supplemental funding (*1)	KRW	30,000
		Guarantees for other supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.	Omisan Wind Power Co., Ltd.	Collateralized money invested	KRW	10,677	Shinhan Bank and others
		Guarantees for supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.	Jeongam Wind Power Co., Ltd.	Performance guarantees		—	SK Securities.Co., LTD., KDB Capital Corporation and others
		Collateralized money invested	KRW	10,740
KOSPO Chile SpA	Kelar S.A.	Collateralized money invested	KRW	79,642	Export-Import Bank of Korea and others
KOSPO Chile SpA	Chester Solar I SpA	Collateralized money invested	KRW	1,524	IBK
KOSPO Chile SpA	Chester Solar IV SpA	Collateralized money invested	KRW	759	IBK
KOSPO Chile SpA	Chester Solar V SpA	Collateralized money invested	KRW	202	IBK
KOSPO Chile SpA	Diego de Almagro Solar SpA	Collateralized money invested	KRW	1,241	IBK
KOSPO Chile SpA	Laurel SpA	Collateralized money invested	KRW	910	IBK
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric Co., Ltd.	Collateralized money invested	KRW	343	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested	KRW	121,657	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees	USD	10,038	Mizuho Bank
Korea Midland Power Co., Ltd.	PT Wampu Electric Power	Debt guarantees	USD	4,817	SMBC
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Collateralized money invested	KRW	1,594	IBK
		Guarantees for supplemental funding and others (*1)		—	IBK and others
Korea Midland Power Co., Ltd.	Yaksu ESS Co., Ltd.	Collateralized money invested	KRW	594	IBK
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested	KRW	351	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested	KRW	4,805	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested	KRW	1,273	IBK
Korea Midland Power Co., Ltd.	Goesan Solar Park Co., Ltd.	Collateralized money invested	KRW	1,704	IBK
Korea Midland Power Co., Ltd.	Bitgoel Eco Energy Co., Ltd.	Collateralized money invested	KRW	4,454	IBK and others
		Guarantees for supplemental funding (*1)		—
Korea Midland Power Co., Ltd.	Energyco LLC	Collateralized money invested	KRW	1,860	Nonghyup Bank
Korea Midland Power Co., Ltd.	Jeju Gimnyeong Wind Power Co., Ltd.	Collateralized money invested	KRW	319	Nonghyup Bank
Korea Midland Power Co., Ltd.	Dongbu Highway Solar Co., Ltd.	Collateralized money invested	KRW	41	Nonghyup Bank

136

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of June 30, 2021 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Guarantee
Korea Midland Power Co., Ltd.	Seobu Highway Solar Co., Ltd.	Collateralized money invested	KRW	100	Nonghyup Bank
Korea South-East Power Co., Ltd.	DAYONE Energy Co., Ltd.	Collateralized money invested (*4)		—	IBK
		Guarantees for supplemental funding and others (*1,5)	KRW	76,800	NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested	KRW	16,039	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested	KRW	17,034	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Guarantees for supplemental funding and others (*1,2)	KRW	2,500	Woori Bank
Korea South-East Power Co., Ltd.	Goseong Green Power Co., Ltd.	Collateralized money invested	KRW	2,454	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested	KRW	2,324	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND Solar Co., Ltd.	Collateralized money invested	KRW	1,108	IBK
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested	KRW	4,675	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested	KRW	2,025	IBK
Korea South-East Power Co., Ltd.	Cheongsong Myeonbongsan Wind Power Plant Co., Ltd.	Collateralized money invested	KRW	3,921	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Youngam Solar Power Co., Ltd.	Collateralized money invested	KRW	6,153	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested	KRW	2,533	Shinhan Bank and others
Korea South-East Power Co., Ltd.	Saemangeum Heemang Photovoltaic Co., Ltd.	Collateralized money invested	KRW	10,703	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested	KRW	4,510	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested	KRW	7,843	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Godeok Clean Energy Co., Ltd.	Collateralized money invested	KRW	5,130	Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested	KRW	3,828	Woori Bank and others
KEPCO Plant Service & Engineering Co., Ltd.	Incheon New Power Co., Ltd.	Collateralized money invested (*7)		—	Shinhan Bank
		Guarantees for supplemental funding (*1)		—

(*1)	The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2)

The Group has granted the right to Hana Financial Investment Co., Ltd., as an agent for the creditors to Expressway Solar-light Power Generation Co., Ltd. (“ESPG”), to the effect that in the event of acceleration of ESPG’s payment obligations under certain borrowings to such creditors, Hana Financial may demand the Group to dispose of shares in ESPG held by the Group and apply the resulting proceeds to repayment of ESPG’s obligations.

(*3)

Controlling and non-controlling common shareholders of Samcheok Eco Materials Co., Ltd. have pre-emption rights, if preferred shareholders intend to sell their shares until December 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of June 30, 2021, the Group has recognized derivative liabilities of W6,760 million related to the guarantee. Meanwhile, the Group is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*4)	The Group recognized an impairment loss on all of the equity securities of DAYONE Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W47,067 million.

(*5)	Pursuant to the guarantee agreement, the Group recognized other provisions of W26,772 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*6)	The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral.

(*7)	The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W461 million.

(*8)	The Group provided a payment guarantee to Daehan Wind Power PSC for opening LC for Debt Service Reserve Account (DSRA).

(*9)	This includes a guarantee related to LC for debt repayment allowance provided to DE Energia SpA, a joint venture of the Group.

(*10)

The Group recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W29,200 million.

(*11)

The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

137

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

46.

Related Parties, Continued

(8)

As of June 30, 2021, there is no financial guarantee provided by related parties.

(9)

Derivatives transactions with related parties as of June 30, 2021 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
Counterparty	Contract year		Pay		Receive		Pay (%)			Receive (%)			Contract exchange rate
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
		2015~2025		111,190		USD 100,000		2.62	%		3.25	%		1,111.90
		2017~2027		111,610		USD 100,000		2.31	%		3.13	%		1,116.10
		2018~2028		108,600		HKD 800,000		2.69	%		3.35	%		135.75
		2018~2023		170,280		USD 150,000		2.15	%		3.75	%		1,135.20
		2019~2027		119,978		CHF 100,000		1.43	%		0.05	%		1,199.78
		2021~2026		111,400		USD 100,000		0.93	%		1.25	%		1,114.00
		2020~2026		118,910		USD 100,000		0.61	%		1.00	%		1,189.10
		2016~2021		121,000		USD 100,000		2.15	%		2.50	%		1,210.00
		2019~2022		112,650		USD 100,000		1.80	%		3.38	%		1,126.50
		2018~2023		320,880		USD 300,000		2.03	%		3.75	%		1,069.60
		2019~2022		117,340		USD 100,000		1.06	%		2.38	%		1,173.40
		2017~2022		113,300		USD 100,000		1.94	%		2.63	%		1,133.00
		2018~2023		169,335		USD 150,000		2.26	%		3.88	%		1,128.90
		2020~2025		122,780		USD 100,000		0.93	%		1.75	%		1,227.80

(ii)

Currency forward


In millions of won and thousands of USD except contract exchange rate information
Counterparty	Contract date		Maturity date		Contract amounts				Contract exchange rate
Counterparty	Contract date		Maturity date		Pay		Receive		Contract exchange rate
Korea Development Bank		2017.12.27		2021.07.12	W	104,849		USD 100,000	W	1,048.49
		2021.04.01		2021.10.01		56,599		USD 50,178		1,127.95
		2021.06.11		2021.07.09		5,560		USD 5,000		1,112.04
		2021.06.25		2021.07.28		11,323		USD 10,000		1,132.30
		2021.06.30		2021.07.16		5,644		USD 5,000		1,128.70

(10)

The Group considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Group recorded salaries and other compensations related to the key management personnel as follows:


In millions of won	June 30, 2021				June 30, 2020
Type	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Salaries	W	622		811		728		917
Employee benefits		5		13		18		32

	W	627		824		746		949

138

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

47.

Statement of Cash Flows

(1)

Significant non-cash transactions for the six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won
Transactions	June 30, 2021		June 30, 2020
Transfer from construction-in-progress to other assets	W	5,551,157		4,358,767
Recognition of asset retirement cost and related provision for decommissioning costs		150,313		114,813
Transfer from provision for disposal of used nuclear fuel to accrued expenses		240,670		192,248
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities		10,198,066		6,786,498
Transfer from inventory to stored nuclear fuel		401,802		230,102
Transfer of right-of-use assets due to change in accounting policy and others		49,668		137,393

(2)

Changes in liabilities incurred from financing activities for the six-month periods ended June 30, 2021 and 2020 are as follows:


In millions of won	June 30, 2021
						Non-cash changes
	Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	69,724,581		3,678,242			—		528,646		73,931,469
Lease liabilities		4,621,096		(322,048	)		43,484		133,698		4,476,230

	W	74,345,677		3,356,194			43,484		662,344		78,407,699


In millions of won	June 30, 2020
						Non-cash changes
	Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	67,876,541		2,439,902			—		392,660		70,709,103
Lease liabilities		5,070,133		(353,977	)		128,230		202,086		5,046,472

	W	72,946,674		2,085,925			128,230		594,746		75,755,575

139

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

48.

Commitments for Expenditure

(1)

The commitments for acquisition of property, plant and equipment as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
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	56,574		16,038		56,574		16,038
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)		45,390		32,876		45,390		32,876
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S		36,143		25,292		36,143		29,898
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S		40,010		5,540		40,010		8,328
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S		37,744		140		37,744		2,244
Purchase of cable (FR CNCO-W, 1C, 325SQ) 1,400,000M		—		—		59,716		37,249
Purchase of switch (Eco) 9,360 units		—		—		40,631		24,031
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M		46,674		13,065		37,288		23,100
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 464,000M		93,520		33,774		82,622		51,130
Purchase of cable (TR CNCE-W,1C,325SQ) 485,200M		60,186		20,151		—		—
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M		52,255		19,885		42,068		35,358
Concrete pole (10M, general purpose, 350KGF) 102,435 ea and five other equipments		91,831		46,091		91,889		80,904
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others		54,714		45,037		—		—
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S		32,000		29,600		—		—
Advanced E-Type low-pressure electronic power meter 1,320,000 ea		43,850		30,808		—		—
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)		34,425		34,425		—		—
Construction of Shin-Kori units (#5,6)		8,625,387		2,725,940		8,625,387		3,256,117
Construction of Shin-Hanul units (#1,2)		9,526,491		—		9,443,635		160,512
Other 30 contracts		740,555		661,355		107,586		58,466
Service of designing Seoul Combined units (#1,2)		31,841		934		31,841		984
Service of designing Shin-Boryeong units (#1,2)		121,179		243		121,163		521
Purchase of furnace for construction of Shin-Seocheon thermal power plant		305,209		20,653		305,209		29,042
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant		105,226		7,285		105,226		8,279
Electricity construction of Shin-Seocheon thermal power plant		332,104		2,937		282,234		13,524
Purchase of main machine for Jeju LNG combined		166,287		11,182		166,287		11,182
Service of designing Taean units (#9,10)		112,909		13,029		112,813		12,933
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant		104,600		40,450		104,600		41,840
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant		210,900		143,635		210,900		147,630
Construction of Gimpo combined heat & power plant		118,933		87,709		—		—
Purchase of coal handling machine for construction of Samcheok units (#1,2)		285,158		16,976		285,158		22,751
Purchase of furnace main equipment for construction of Samcheok units (#1,2)		—		—		1,065,141		11,609
Purchase of turbine main equipment for Samcheok units (#1,2)		—		—		211,349		125
Purchase of main equipment for Namjeju		140,144		3		140,144		112

140

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

48.

Commitments for Expenditure, Continued

(2)

As of June 30, 2021, details of contracts for inventory purchase commitment are as follows:

The Group imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Group entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:


Type	Periods	Contracted quantity
Concentrate	2020 ~ 2030	32,435 Ton U3O8
Transformed	2020 ~ 2030	18,088 Ton U
Enrichment	2020 ~ 2030	17,667 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Group, is 1,625 Ton U (contract periods : 2014 ~ 2024).

141

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

49.

Contingencies and Commitments

(1)

Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2021 and December 31, 2020 are as follows:


In millions of won	June 30, 2021				December 31, 2020
	Number of cases		Claim amount		Number of cases		Claim amount
As the defendant		707	W	629,918		663	W	550,535
As the plaintiff		221		753,980		200		729,798

A group of plaintiffs (consisting of 2,167 individuals) filed a lawsuit against NSSC (Nuclear Safety and Security Commission) regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal has been dismissed on May 29, 2020, resulting in plaintiffs’ loss. Also, Greenpeace and others filed an administrative litigation against NSSC requesting cancelation of the construction permit of Shin-Kori unit 5 and 6 in September 12, 2016 and lost the lawsuit in February 14, 2019. They appealed the case in March 18, 2019, but the appeal had been closed on April 29, 2021. The Group joined these litigations as a stakeholder after obtaining permission from the court.

As of June 30, 2021, in connection with Shin-Hanul unit 3 & 4, the Group has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Group does not believe that it has a present obligation to this vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of June 30, 2021.

The Group is the defendant against a number of claims. The following is potentially significant ongoing claims pertaining to the Group:

①

There is an ongoing claim against the Group from a group of plaintiffs (consisting of 3,910 individuals) regarding the contribution to plan assets and payment of retirement benefits. The Group recognized W11,730 million as litigation provisions in relation to the lawsuit.

②

There is an ongoing second trial against the Group regarding the completion of the waste oil refining power generation plant of Next energy Co., Ltd. The Group recognized the amount of probable outflow of resources as a provision.

③

There are multiple ongoing claims against the Group related to ordinary wages, requesting payment of unpaid wages. The Group believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. Accordingly, the Group recognized W9,685 million as litigation provisions in relation to the lawsuit as of June 30, 2021.

In addition to the abovementioned significant ongoing claims, there are 8 arbitration cases pertaining to the Group as of June 30, 2021 and the significant arbitration cases for the six-month period ended June 30, 2021 are as follows:

①

In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Group to the Indian Council of Arbitration due to disagreements in the contract, but the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

②

Two companies including GE Energy Products France SNC filed an arbitration against the Group to Korea Commercial Arbitration Board regarding additional payment of construction costs, but the Group has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

142

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

49.

Contingencies and Commitments, Continued

(2)

Guarantees of payments and commitments provided to other companies as of June 30, 2021 are as follows:

①

The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

②

The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and investment guarantee up to USD 43,500 thousand to Mizuho bank and others in proportion to its ownership in the electricity purchase contract with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

③

The Group has provided MUFG Bank, Ltd. (MUFG) borrowing guarantee up to USD 41,258 thousand in proportion to its ownership in the equity bridge loan (EBL) guarantee with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

④

The Group has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees of mutual investment of USD 2,192 thousand, which is equivalent to the ownership interest of PT BS Energy and PT Nusantara Hydro Alam, in order to guarantee the expenses related to hydroelectric power business of Tanggamus, Indonesia.

⑤

The Group has provided USD 16,000 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

⑥

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.

⑦

The Group has provided a guarantee to complete the construction of the waste oil refining power generation plant of Next energy Co.,Ltd. (contract amount : W14,700 million) to the financial institution agents, thus the Group is liable to compensate to financial institution agents for the any damages incurred in the event of incompletion of the construction. Also, the power generation guarantee agreement was concluded in connection with the consignment service for management and operations (the repayment period of the principal of the loan) after the completion of the construction. If the amount of power generated falls short of the contracted power generation amount, the Group will be liable to pay compensation for the shortage. The Group has recognized a provision based on the assessment of expected outflow of resources.

⑧

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.

⑨

The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,907,215 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

⑩

The Group has provided Export-Import Bank of Korea and others a performance guarantee up to USD 12,090 thousand for the excess project costs of hydroelectric power generation project of Tanggamus, Indonesia.

The Group has provided Export-Import Bank of Korea and others a borrowing guarantee up to USD 5,911 thousand for the DSRA guarantee of hydroelectric power generation project of Tanggamus, Indonesia.

The Group has provided PT. Cirebon Energi Prasarana a performance guarantee up to USD 43,500 thousand for the fulfillment of subscription obligation regarding Cirebon 2 coal-fired power generation project in Indonesia.

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.

The Group has provided Morgan Stanley Capital Group Inc. a performance guarantee up to USD 30,000 thousand for the implementation of photovoltaic power generation project in USA.

The Group has provided Morgan Stanley Renewables Inc. a performance guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

143

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

49.

Contingencies and Commitments, Continued

(3)

Credit lines provided by financial institutions as of June 30, 2021 are as follows:


In millions of won and thousands of foreign currencies
Commitments	Financial institutions	Currency	Credit limit
Commitments on Bank-overdraft	Nonghyup Bank and others	KRW		1,866,500
Commitments on Bank-daylight overdraft	Nonghyup Bank	KRW		280,000
Limit amount available for CP	Hana Bank	KRW		1,150,000
Limit amount available for card	Hana Bank and others	KRW		47,104
	Banco de Oro	PHP		5,000
Loan limit	Kookmin Bank and others	KRW		2,030,008
	DBS Bank Ltd and others	USD		1,849,700
Certification of payment on payables from foreign country	Nonghyup Bank	USD		8,700
Certification of payment on L/C	Shinhan Bank and others	USD		907,026
	Shinhan Bank	JPY		707,337
	Mizuho Bank	MXN		3,666
Certification of Performance guarantee on contract	Seoul Guarantee Insurance and others	KRW		87,041
	First Abu Dhabi Bank and others	USD		1,042,186
	Korea Development Bank and others	JPY		637,670
	Hana Bank	EUR		4,065
	Shinhan Bank	INR		6,806
	Hana Bank	CAD		148
	Hana Bank	SAR		68,054
Certification of bidding	Hana Bank	USD		10,000
	Hana Bank and others	EUR		72
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance	KRW		40,153
	Export-Import Bank of Korea and others	USD		549,771
	Hana Bank	SAR		6,508
	Hana Bank	MXN		20,538
Others	Nonghyup Bank and others	KRW		663,722
	Export-Import Bank of Korea and others	USD		2,589,513
	Standard Chartered	AED		50
	Shinhan Bank	MXN		6,471
	Hana Bank	EUR		34
Inclusive credit	Hana Bank	KRW		8,000
	Hana Bank and others	USD		35,800
	Shinhan Bank	INR		70,028
Trade finance	BNP Paribas and others	USD		750,000

144

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

49.

Contingencies and Commitments, Continued

(4)

As of June 30, 2021, blank check and assets provided as collaterals or pledges to financial institutions by the Group are follows:

In millions of won and thousands of foreign currencies

Guarantor

Guarantee

Type of guarantee

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)

KOSPO Youngnam Power Co., Ltd.

Shinhan Bank and others

Cash and cash equivalents and others

KRW

396,120

Collateral for borrowings
(*2)

Gyeongju Wind Power Co., Ltd.

Samsung Fire & Marine Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

110,240

Collateral for borrowings
(*2)

Korea Offshore Wind Power Co., Ltd.

Woori Bank and others

Property, plant and equipment and others

KRW

190,800

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

236,570

Collateral for borrowings
(*1)

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

The 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)

TS Energy No. 25 Co., Ltd.

Kyobo Life Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

521,281

Collateral for borrowings
(*2)

(*1)	This is based on the amount of loan commitment limit.

(*2)	As of June 30, 2021, 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 Korea Energy Agency as of June 30, 2021. The Group has provided a blank check as a repayment guarantee.

145

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

49.

Contingencies and Commitments, Continued

(5)

The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of W67,881 million as of June 30, 2021, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W15 million and depreciation on the idle assets of W1,854 million are recorded in other expenses for the six-month period ended June 30, 2021. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of June 30, 2021.

(6)

Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in the Gaeseong Industrial District as of June 30, 2021. The book value of facility is W14,987 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex is W2,911 million. The outcome of this event cannot be reasonably estimated as of June 30, 2021.

(7)

In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of June 30, 2021.

(8)

To prevent the spread of COVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with COVID-19. The Group was unable to reasonably estimate the impact of COVID-19 and the impact of the government support policies on the Group’s consolidated financial statements as of June 30, 2021, and the resulting effects have not been reflected in the consolidated financial statements.

146

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

50.

Subsequent Events

Subsequent to June 30, 2021, the Company and its subsidiaries including Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., and Korea East-West Power Co., Ltd. issued corporate bonds and global bond for the purposes of operations, repayment of debts, maintenance of facility and others as follows:


In millions of won and thousands of USD
Company	Type	Issue date		Maturity		Interest rate			Amount
Korea Electric Power Corporation	#1048 Corporate bond		2021.07.01		2023.07.01		1.50	%	W	200,000
	#1049 Corporate bond		2021.07.01		2024.07.01		1.65	%		200,000
	#1050 Corporate bond		2021.07.02		2023.07.02		1.51	%		150,000
	#1051 Corporate bond		2021.07.02		2024.07.02		1.69	%		150,000
	#1052 Corporate bond		2021.07.09		2024.07.09		1.63	%		200,000
	#1053 Corporate bond		2021.07.09		2026.07.09		1.93	%		200,000
	#1054 Corporate bond		2021.07.12		2026.07.12		1.94	%		200,000
	#1055 Corporate bond		2021.07.12		2028.07.12		2.10	%		100,000
	#1056 Corporate bond		2021.07.12		2031.07.12		2.20	%		100,000
	#1057 Corporate bond		2021.08.04		2026.08.04		1.91	%		300,000
	#1058 Corporate bond		2021.08.04		2031.08.04		2.05	%		100,000
Korea South-East Power Co., Ltd.	#50-1 Corporate bond		2021.07.26		2023.07.26		1.52	%		190,000
	#50-2 Corporate bond		2021.07.26		2031.07.26		2.10	%		100,000
Korea Midland Power Co., Ltd.	#63-1 non-guaranteed Corporate bond		2021.07.14		2023.07.14		1.39	%		70,000
	#63-2 non-guaranteed Corporate bond		2021.07.14		2024.07.14		1.69	%		60,000
	#63-3 non-guaranteed Corporate bond		2021.07.14		2031.07.14		2.17	%		30,000
	#8 Foreign currency Corporate bond		2021.08.09		2026.08.09		1.25	%		USD 300,000
Korea Western Power Co., Ltd.	#49-1 Corporate bond		2021.07.29		2024.07.29		1.68	%		110,000
	#49-2 Corporate bond		2021.07.29		2026.07.29		1.92	%		130,000
	#49-3 Corporate bond		2021.07.29		2031.07.29		2.00	%		30,000
Korea Southern Power Co., Ltd.	#61 Unsecured public bond		2021.07.28		2041.07.28		2.38	%		50,000
Korea East-West Power Co., Ltd.	#21-5 Corporate bond		2021.07.14		2026.07.13		1.98	%		90,000
	#21-6 Corporate bond		2021.07.14		2031.07.13		2.10	%		10,000

147

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2021 and 2020 (Unaudited)

51.

Adjusted Operating Profit (Loss)

The operating profit (loss) in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Group’s results from operating activities as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the six-month periods ended June 30, 2021 and 2020 to the operating profit as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.


In millions of won	June 30, 2021						June 30, 2020
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Operating profit (loss) on the consolidated interim statements of comprehensive income (loss)	W	(764,789	)		(193,141	)		389,810			820,364
Add
Other income
Reversal of other provisions		4,400			6,581			18,322			19,892
Reversal of other allowance for doubtful accounts		79			79			2,441			2,465
Gains on government grants		70			198			58			129
Gains on assets contributed		6			2,911			12,047			22,484
Gains on liabilities exempted		1,625			1,722			384			1,214
Compensation and reparations revenue		20,055			53,719			20,902			40,397
Revenue from research contracts		1,788			2,066			—			682
Rental income		50,144			100,675			49,586			96,453
Others		10,969			21,094			7,268			13,816
Other gains
Gains on disposal of property, plant and equipment		13,128			22,274			—			56,163
Gains on disposal of intangible assets		—			—			1,556			1,556
Reversal of impairment losses on property, plant and equipment		—			—			6,737			6,737
Gains on foreign currency translation		—			6,606			4,853			16,872
Gains on foreign currency transactions		9,341			17,267			15,323			23,152
Gains on insurance proceeds		—			144			5,665			5,665
Others		66,230			127,998			112,712			173,955
Deduct
Other expenses
Compensation and reparations expense		(295	)		(595	)		(8,465	)		(8,778	)
Accretion expenses of other provisions		(747	)		(1,111	)		(58	)		(114	)
Depreciation expenses on investment properties		(363	)		(725	)		(364	)		(735	)
Depreciation expenses on idle assets		(878	)		(1,854	)		(1,638	)		(3,276	)
Other bad debt expense		(3,288	)		(7,068	)		(7,152	)		(7,187	)
Donations		(60,976	)		(67,445	)		(78,051	)		(89,195	)
Others		(4,235	)		(11,140	)		(4,321	)		(7,376	)
Other losses
Losses on disposal of property, plant and equipment		(20,638	)		(29,058	)		(17,084	)		(19,253	)
Losses on disposal of intangible assets		—			(37	)		—			—
Losses on impairment of property, plant and equipment		(3,315	)		(3,315	)		(9,162	)		(9,162	)
Losses on impairment of intangible assets		—			—			(3,505	)		(3,505	)
Losses on foreign currency translation		(3,402	)		(4,167	)		(3,080	)		(11,661	)
Losses on foreign currency transactions		(7,595	)		(21,132	)		(9,526	)		(31,626	)
Others		(53,782	)		(97,102	)		(14,919	)		(57,385	)

Adjusted operating profit (loss)	W	(746,468	)		(74,556	)		490,339			1,052,743

148