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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule13a-16 or15d-16
of the Securities Exchange Act of 1934
For the Month of December 2019
KOREA ELECTRIC POWER CORPORATION
(Translation of registrant’s name into English)
55Jeollyeok-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 Form20-F or Form40-F.
Form20-F ☒ Form40-F ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-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 Rule12g3-2(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 Rule12g3-2(b):82- .
This Report of Foreign Private Issuer on Form6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.
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QUARTERLY BUSINESS REPORT
(For the period from January 1, 2019 to September 30, 2019)
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, ORK-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.
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I. Company Overview
1. Name of the company: Korea Electric Power Corporation (KEPCO)
2. Information of the company
(Address) 55Jeollyeok-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), nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF), IT service by KEPCO KDN, and other overseas businesses and related investments.
4. Consolidated subsidiaries
(As of September 30, 2019) | ||||
Domestic | Overseas | Total | ||
38 | 75 | 113 |
5. Major changes in management
On March 4, 2019, Mr. Kim,Sung-Arm was appointed as a standing director in replacement of Mr. Moon,Bong-Soo, whose term of office expired.
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6. Changes in major shareholders
On December 31, 2014, Korea Development Bank merged with Korea Finance Corporation, and became the largest shareholder of KEPCO.
7. Information regarding KEPCO shares
A. | Issued share capital: Won 3,210 billion (Authorized capital: Won 6 trillion) |
B. | Total number of issued shares: 641,964,077 |
(Total number of shares authorized to for issuance: 1,200,000,000)
C. | Dividends: KEPCO did not pay any dividends for fiscal year of 2018. Dividend payments for fiscal year 2017 and 2016 were Won 790 and Won 1,980 per share respectively. |
II. Business Overview
1. Consolidated financial results by segment for a nine-month period ended September 30, 2019 and 2018
(In billions of Won) | ||||||||||||||||
January to September 2018 | January to September 2019 | |||||||||||||||
Sales | Operating profit | Sales | Operating profit | |||||||||||||
Electricity sales | 45,139 | -1,399 | 44,172 | -1,479 | ||||||||||||
Nuclear generation | 6,307 | 735 | 6,629 | 779 | ||||||||||||
Thermal generation | 19,508 | 1,103 | 18,390 | 826 | ||||||||||||
Others(*) | 2,469 | 273 | 2,501 | 248 | ||||||||||||
Subtotal | 73,423 | 712 | 71,692 | 374 | ||||||||||||
Adjustment for related-party transactions | -27,970 | -132 | -27,460 | -63 | ||||||||||||
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Total | 45,453 | 580 | 44,232 | 311 | ||||||||||||
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• | 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. |
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2. Changes in unit prices of major products
(In Won per kWh) | ||||||||
Business sector | Company | January to September 2018 | January to September 2019 | |||||
Electricity sold | Residential | KEPCO | 108.05 | 105.44 | ||||
Commercial | 129.98 | 130.81 | ||||||
Educational | 105.05 | 104.93 | ||||||
Industrial | 106.30 | 106.29 | ||||||
Agricultural | 47.64 | 47.90 | ||||||
Street lighting | 115.89 | 115.98 | ||||||
Overnight usage | 67.33 | 66.83 | ||||||
Electricity from nuclear generation | Nuclear Generation | KHNP | 63.61 | 58.02 | ||||
Electricity from thermal generation | Thermal generation | KOSEP | 94.27 | 93.42 | ||||
KOMIPO | 94.00 | 103.20 | ||||||
KOWEPO | 96.40 | 99.62 | ||||||
KOSPO | 98.52 | 103.65 | ||||||
EWP | 98.01 | 98.46 |
3. Power purchase from generation companies for a nine-month period ended September 30, 2019
Company | Volume (GWh) | Expense (In billions of Won) | ||||||
KHNP | 111,857 | 6,483 | ||||||
KOSEP | 45,035 | 3,956 | ||||||
KOMIPO | 30,355 | 3,130 | ||||||
KOWEPO | 31,995 | 3,184 | ||||||
KOSPO | 38,031 | 3,946 | ||||||
EWP | 36,884 | 3,631 | ||||||
Others | 112,753 | 12,725 | ||||||
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Total | 406,910 | 37,055 | ||||||
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• | Based on preliminary estimates and excluding expense related to the renewable portfolio standard and carbon emissions. |
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4. Intellectual property as of September 30, 2019
Patents | Utility models | Designs | Trademarks | Total | ||||||||||||||||||||||||
Domestic | Overseas | Domestic | Overseas | |||||||||||||||||||||||||
KEPCO | 2,355 | 258 | 62 | 78 | 106 | 47 | 2,906 | |||||||||||||||||||||
Generation subsidiaries | 2,560 | 377 | 115 | 44 | 139 | 23 | 3,258 | |||||||||||||||||||||
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Total | 4,915 | 635 | 177 | 122 | 245 | 70 | 6,164 | |||||||||||||||||||||
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III. Financial Information
1. | Condensed consolidated financial results as of and for a nine-month period ended September 30, 2018 and 2019 |
(In billions of Won)
Consolidated statements of comprehensive income | Consolidated statements of financial position | |||||||||||||||||||||||||
January to September 2018 | January to September 2019 | Change (%) | December 31, 2018 | September 30, 2019 | Change (%) | |||||||||||||||||||||
Sales | 45,453 | 44,232 | -2.7 | Total assets | 185,249 | 193,875 | 4.7 | |||||||||||||||||||
Operating profit | 580 | 311 | -46.5 | Total liabilities | 114,156 | 123,850 | 8.5 | |||||||||||||||||||
Net income | -432 | -932 | -115.9 | Total equity | 71,093 | 70,025 | -1.5 |
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2. | Condensed separate financial results as of and for a nine-month period ended September 30, 2018 and 2019 |
(In billions of Won)
Separate statements of comprehensive income | Separate statements of financial position | |||||||||||||||||||||||||
January to September 2018 | January to September 2019 | Change (%) | December 31, 2018 | September 30, 2019 | Change (%) | |||||||||||||||||||||
Sales | 45,139 | 44,172 | -2.1 | Total assets | 107,486 | 107,674 | 0.2 | |||||||||||||||||||
Operating profit | -1,399 | -1,479 | -5.7 | Total liabilities | 53,404 | 55,232 | 3.4 | |||||||||||||||||||
Net income | -544 | -1,527 | -180.9 | Total equity | 54,082 | 52,442 | -3.0 |
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 eightnon-standing directors. The number ofnon-standing directors must exceed the number of standing directors, including our president.
* | The Audit Committee consists of one standing director and two non-standing directors. |
2. Board meetings and agendas for a nine-month period ended September 30, 2019
Number of meetings | Number of agendas | Classification | ||||
Resolutions | Reports | |||||
10 | 31 | 24 | 7 |
* | The audit committee held 8 meetings with 35 agendas (of which, 21 were approved as proposed and 14 were accepted as reported). |
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3. Major activities of the Board of Directors
Date | Agenda | Results | Type | |||
January 23, 2019 | Approval to close the shareholders’ registry for extraordinary general meeting of shareholders | Approved as proposed | Resolution | |||
Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2019 |
Approved as proposed |
Resolution | ||||
February 22, 2019 | Approval to call for the annual general meeting of shareholders for the fiscal year 2018 | Approved as proposed | Resolution | |||
Approval of amendment to the regulations on internal control over financial reporting |
Approved as proposed |
Resolution | ||||
Approval of consolidated and separate financial statements for the fiscal year 2018 |
Approved as proposed |
Resolution | ||||
Approval of the maximum aggregate amount of remuneration for directors in 2019 |
Approved as proposed |
Resolution | ||||
Report on the annual management of commercial papers in 2018 |
Accepted as reported |
Report | ||||
Report on internal control over financial reporting for the fiscal year 2018 |
Accepted as reported |
Report | ||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2018 |
Accepted as reported |
Report | ||||
Report on audit results for 2018 | Accepted as reported | Report | ||||
March 15, 2019 | Approval of establishment of and contribution to subsidiaries for meter-reading and security services to transitionnon-permanent workers to permanent positions | Approved as proposed | Resolution | |||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service |
Approved as proposed |
Resolution |
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Date | Agenda | Results | Type | |||
April 12, 2019 | Approval of personnel increase | Approved as proposed | Resolution | |||
Approval of amendment to the Rules on Employment |
Approved as proposed |
Resolution | ||||
Approval of amendment to the Regulations for Employee Remuneration and Welfare |
Approved as proposed |
Resolution | ||||
May 17, 2019 | Approval of amendment to the construction plan of the flagship electronic vehicles charging station | Approved as proposed | Resolution | |||
Approval of liquidation of Ulleungdo Natural Energy Co., Ltd. | Approved as proposed | Resolution | ||||
Report on audit results for the first quarter of 2019 | Accepted as reported | Report | ||||
June 21, 2019 | Approval of amendment to the Electricity Usage Agreement | Deferred | Resolution | |||
Approval of amendment to the Regulations Concerning the Board of Directors |
Approved as proposed |
Resolution | ||||
Approval of themid-to-long term financial management plan(2019-2023) |
Approved as proposed |
Resolution | ||||
Approval of the safety management plan of 2019 |
Approved as proposed |
Resolution | ||||
Approval to consign contract administration of ICT Planning Department to Public Procurement Service |
Approved as proposed |
Resolution | ||||
June 28, 2019 | Approval of amendment to the Electricity Usage Agreement | Approved as proposed | Resolution | |||
Approval of amendment to the electricity tariff system | Approved as proposed | Resolution | ||||
July 19, 2019 | Approval of donation of KEPCO Energy Park exhibition | Approved as proposed | Resolution | |||
Approval of contribution to solar power project in Mexico |
Approved as proposed |
Resolution | ||||
August 8, 2019 | Approval of establishment of and contribution to KEPCO Tech University | Approved as proposed | Resolution | |||
August 22, 2019 | Approval of deliberation on former executive’s violation of job integrity agreement | Approved as proposed | Resolution | |||
Report on audit results for the second quarter of 2019 |
Accepted as reported |
Report | ||||
Report on financial statements for the first half of 2019 |
Accepted as reported |
Report |
* | The agenda for the proposed approval of amendment to the Electricity Usage Agreement on June 21, 2019 was deferred, as the directors requested to have further discussion on this matter. |
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4. Attendance Status ofNon-standing directors
Date | Agenda | Kim, Chang- Joon | Yang, Bong- Ryull | Kim, Jwa- Kwan | Jung, Yeon- Gil | Noh, Geum- Sun | Choi, Seung- Kook | Park, Cheol- Su | Kim, Tai- Yoo | |||||||||
January 23, 2019 | Approval to close the shareholders’ registry for extraordinary general meeting of shareholders | For | For | Absent | For | For | Absent | For | For | |||||||||
Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2019 |
For |
For |
Absent |
For |
For |
Absent |
For |
For | ||||||||||
February 22, 2019 | Approval to call for the annual general meeting of shareholders for the fiscal year 2018 | For | For | For | For | For | For | For | For | |||||||||
Approval of amendment to the regulations on internal control over financial reporting | For | For | For | For | For | For | For | For | ||||||||||
Approval of consolidated and separate financial statements for the fiscal year 2018 | For | For | For | For | For | For | For | For | ||||||||||
Approval of the maximum aggregate amount of remuneration for directors in 2019 | For | For | For | For | For | For | For | For | ||||||||||
Report on the annual management of commercial papers in 2018 | Agenda for Report | |||||||||||||||||
Report on internal control over financial reporting for the fiscal year 2018 | Agenda for Report | |||||||||||||||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2018 | Agenda for Report | |||||||||||||||||
Report on audit results for 2018 | Agenda for Report | |||||||||||||||||
March 15, 2019 | Approval of establishment of and contribution to subsidiaries for meter-reading and security services to transitionnon-permanent workers to permanent positions | For | For | For | For | For | For | For | For | |||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service |
For |
For |
For |
For |
For |
For |
For |
For |
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Date | Agenda | Kim, Chang- Joon | Yang, Bong- Ryull | Kim, Jwa- Kwan | Jung, Yeon- Gil | Noh, Geum- Sun | Choi, Seung- Kook | Park, Cheol- Su | Kim, Tai- Yoo | |||||||||
April 12, 2019 | Approval of personnel increase | For | For | For | For | For | For | For | For | |||||||||
Approval of amendment to the Rules on Employment |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
Approval of amendment to the Regulations for Employee Remuneration and Welfare |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
May 17, 2019 | Approval of amendment to the construction plan of the flagship electronic vehicles charging station | For | For | For | For | For | For | For | For | |||||||||
Approval of liquidation of Ulleungdo Natural Energy Co., Ltd. |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
Report on audit results for the first quarter of 2019 | Agenda for Report | |||||||||||||||||
June 21, 2019 | Approval of amendment to the Electricity Usage Agreement | deferred | deferred | deferred | deferred | deferred | deferred | deferred | deferred | |||||||||
Approval of amendment to the Regulations Concerning the Board of Directors |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
Approval of themid-to-long term financial management plan(2019-2023) |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
Approval of the safety management plan of 2019 |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
Approval to consign contract administration of ICT Planning Department to Public Procurement Service |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
June 28, 2019 | Approval of amendment to the Electricity Usage Agreement | — | — | — | — | — | — | — | — | |||||||||
Approval of amendment to the electricity tariff system |
For |
For |
For |
For |
For |
For |
For |
For | ||||||||||
July 19, 2019 | Approval of donation of KEPCO Energy Park exhibition | For | For | For | For | For | For | For | Absent | |||||||||
Approval of contribution to solar power project in Mexico |
For |
For |
For |
For |
For |
For |
For |
Absent | ||||||||||
August 8, 2019 | Approval of establishment of and contribution to KEPCO Tech University | For | For | For | For | For | For | For | Absent | |||||||||
August 22, 2019 | Approval of deliberation on former executive’s violation of job integrity agreement | Absent | For | For | For | For | For | For | Absent | |||||||||
Report on audit results for the second quarter of 2019 |
Agenda for Report | |||||||||||||||||
Report on financial statements for the first half of 2019 |
Agenda for Report | |||||||||||||||||
Attendance Rate | 90% | 100% | 90% | 100% | 100% | 90% | 100% | 70% |
* | Individual director’s vote results regarding the proposed approval of amendment to the Electricity Usage Agreement on June 28, 2019 is not disclosed, pending confirmation of the facts regarding a criminal complaint and a derivative lawsuit by the minority shareholders of KEPCO, alleging breach of fiduciary duty with respect to KEPCO’s amendment to the electricity tariff system. |
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5. Attendance Status of Standing directors
Date | Agenda | JongKap KIM | Lee, Jung- Hee | Kim, Hoe- Chun | Kim, Dong- Sub | Park, Hyung- Duck | Lim, Hyun- Seung | Kim, Sung- Arm | ||||||||
January 23, 2019 | Approval to close the shareholders’ registry for extraordinary general meeting of shareholders | Absent | For | For | For | For | Absent | |||||||||
Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2019 |
Absent |
For |
For |
For |
For |
Absent | ||||||||||
February 22, 2019 | Approval to call for the annual general meeting of shareholders for the fiscal year 2018 | For | For | For | For | For | For | |||||||||
Approval of amendment to the regulations on internal control over financial reporting | For | For | For | For | For | For | ||||||||||
Approval of consolidated and separate financial statements for the fiscal year 2018 | For | For | For | For | For | For | Before Appointment | |||||||||
Approval of the maximum aggregate amount of remuneration for directors in 2019 | For | For | For | For | For | For | ||||||||||
Report on the annual management of commercial papers in 2018 | Agenda for Report | |||||||||||||||
Report on internal control over financial reporting for the fiscal year 2018 | Agenda for Report | |||||||||||||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2018 | Agenda for Report | |||||||||||||||
Report on audit results for 2018 | Agenda for Report |
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Date | Agenda | JongKap KIM | Lee, Jung- Hee | Kim, Hoe- Chun | Kim, Dong- Sub | Park, Hyung- Duck | Lim, Hyun- Seung | Kim, Sung- Arm | ||||||||
March 15, 2019 | Approval of establishment of and contribution to subsidiaries for meter-reading and security services to transition non-permanent workers to permanent positions | For | For | For | For | For | For | Absent | ||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service |
For |
For |
For |
For |
For |
For |
Absent | |||||||||
April 12, 2019 | Approval of personnel increase | For | For | For | For | For | For | For | ||||||||
Approval of amendment to the Rules on Employment |
For |
For |
For |
For |
For |
For |
For | |||||||||
Approval of amendment to the Regulations for Employee Remuneration and Welfare |
For |
For |
For |
For |
For |
For |
For | |||||||||
May 17, 2019 | Approval of amendment to the construction plan of the flagship electronic vehicles charging station | For | For | For | For | For | For | For | ||||||||
Approval of liquidation of Ulleungdo Natural Energy Co., Ltd. |
For |
For |
For |
For |
For |
For |
For | |||||||||
Report on audit results for the first quarter of 2019 |
Agenda for Report | |||||||||||||||
June 21, 2019 | Approval of amendment to the Electricity Usage Agreement | deferred | deferred | deferred | deferred | deferred | deferred | deferred | ||||||||
Approval of amendment to the Regulations Concerning the Board of Directors |
For |
For |
For |
For |
For |
For |
For | |||||||||
Approval of themid-to-long term financial management plan(2019-2023) |
For |
For |
For |
For |
For |
For |
For | |||||||||
Approval of the safety management plan of 2019 |
For |
For |
For |
For |
For |
For |
For | |||||||||
Approval to consign contract administration of ICT Planning Department to Public Procurement Service |
For |
For |
For |
For |
For |
For |
For | |||||||||
June 28, 2019 | Approval of amendment to the Electricity Usage Agreement | — | — | — | — | — | — | — | ||||||||
Approval of amendment to the electricity tariff system |
For |
For |
For |
For |
For |
For |
For | |||||||||
July 19, 2019 | Approval of donation of KEPCO Energy Park exhibition | For | For | For | For | For | For | For | ||||||||
Approval of contribution to solar power project in Mexico |
For |
For |
For |
For |
For |
For |
For | |||||||||
August 8, 2019 | Approval of establishment of and contribution to KEPCO Tech University | For | For | For | For | For | For | For | ||||||||
August 22, 2019 | Approval of deliberation on former executive’s violation of job integrity agreement | For | For | For | For | For | For | For | ||||||||
Report on audit results for the second quarter of 2019 |
Agenda for Report | |||||||||||||||
Report on financial statements for the first half of 2019 |
Agenda for Report | |||||||||||||||
Attendance Rate | 90% | 100% | 100% | 100% | 100% | 90% | 87.5% |
* | Individual director’s vote results regarding the proposed approval of amendment to the Electricity Usage Agreement on June 28, 2019 is not disclosed, pending confirmation of the facts regarding a criminal complaint and a derivative lawsuit by the minority shareholders of KEPCO, alleging breach of fiduciary duty with respect to KEPCO’s amendment to the electricity tariff system. |
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6. Major activities of the Audit Committee
Date | Agenda | Results | Type | |||
January 18, 2019 | Approval of appointment of independent auditors of subsidiaries | Approved as proposed | Resolution | |||
February 22, 2019 | Approval of amendment to the guidelines for the handling of whistleblowing report and protection of whistleblowers | Approved as proposed | Resolution | |||
Approval of Audit plans for 2019 | Approved as proposed | Resolution | ||||
Approval of amendment to the regulations on internal control over financial reporting | Approved as proposed | Resolution | ||||
Prior approval fornon-audit service for subsidiaries by the independent auditor | Approved as proposed | Resolution | ||||
Approval of investigation result on the agendas for the extraordinary general meeting of shareholders | Approved as proposed | Resolution | ||||
Report on internal control over financial reporting for the fiscal year 2018 | Accepted as reported | Report | ||||
Report on the evaluation on internal control over financial reporting for the fiscal year 2018 | Accepted as reported | Report | ||||
Report on audit results for fiscal year 2018 | Accepted as reported | Report | ||||
Report on education plans for auditors in 2019 | Accepted as reported | Report |
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Date | Agenda | Results | Type | |||
March 15, 2019 | Approval of investigation result on the agendas 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 | ||||
Approval of amendment to guidelines for internal audit regulations and guideline for practice for KEPCO executives and staff members |
Approved as proposed |
Resolution | ||||
Approval of appointment of independent auditors of subsidiaries |
Approved as proposed |
Resolution | ||||
Report on audit results by the independent auditor for the consolidated and separate financial statements for the fiscal year 2018 |
Accepted as reported |
Report | ||||
April 12, 2019 | Approval of appointment of independent auditors of subsidiaries | Approved as proposed | Resolution | |||
Prior approval fornon-audit service for subsidiaries by the independent auditor | Approved as proposed | Resolution | ||||
Report on the Form20-F for the fiscal year 2018 to be filed with the U.S. Securities and Exchange Commission | Accepted as reported | Report | ||||
Auditor’s report for the fiscal year 2018 in accordance with U.S. accounting principles | Accepted as reported | Report | ||||
May 17, 2019 | Approval of amendment to the guidelines for disciplinary actions | Approved as proposed | Resolution | |||
Prior approval fornon-audit service for subsidiaries by the independent auditor |
Approved as proposed |
Resolution | ||||
Report on the new accounting policy according to the amendments of IFRS16 Leases |
Accepted as reported |
Report | ||||
Report on audit results for the first quarter of 2019 |
Accepted as reported |
Report | ||||
Auditor’s review report for the first quarter of 2019 |
Accepted as reported |
Report |
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Date | Agenda | Results | Type | |||
June 21, 2019 | Approval of amendment to the guidelines for immunity of proactive performance | Approved as proposed | Resolution | |||
Independent auditor’s report on the audit plans for the fiscal year 2019 |
Accepted as reported |
Report | ||||
August 22, 2019 | Approval of appointment of independent auditors of subsidiaries | Approved as proposed | Resolution | |||
Prior approval fornon-audit service for subsidiaries by the independent auditor | Approved as proposed | Resolution | ||||
Approval of countermeasures for a lawsuit by the minority shareholders of KEPCO | Approved as proposed | Resolution | ||||
Amendments to Code of Conduct | Approved as proposed | Resolution | ||||
Independent Auditor’s review report for the first half of 2019 | Accepted as reported | Report | ||||
Report for deliberation on former executive’s violation of job integrity agreement | Accepted as reported | Report | ||||
Report on audit results for the second quarter of 2019 | Accepted as reported | Report | ||||
October 22, 2019 | Prior approval fornon-audit service for subsidiaries by the independent auditor | Approved as proposed | Resolution | |||
Amendments to internal audit regulations |
Approved as proposed |
Resolution |
* | The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company ad takes administrative measures as appropriate in accordance with relevant internal regulations. KEPCO’s District Divisions and Branch Offices also have separate audit teams which conduct internal inspections with respect to the relevant divisions or offices. |
Table of Contents
7. Attendance Status of the Audit Committee
Date | Agenda | Noh, Geum-Sun | Jung, Yeon-Gil | Lee, Jung-Hee | ||||
January 18, 2019 | Approval of appointment of independent auditors of subsidiaries | For | For | For | ||||
February 22, 2019 |
Approval of amendments to the guidelines for the handling of whistleblowing report and protection of whistleblowers |
For |
For |
For | ||||
Approval of Audit plans for 2019 |
For |
For |
For | |||||
Approval of amendment to the regulations on internal control over financial reporting |
For |
For |
For | |||||
Prior approval fornon-audit service for subsidiaries by the independent auditor |
For |
For |
For | |||||
Approval of investigation result on the agendas for the extraordinary general meeting of shareholders |
For |
For |
For | |||||
Report on internal control over financial reporting for the fiscal year 2018 |
For |
For |
For | |||||
Report on the evaluation on internal control over financial reporting for the fiscal year 2018 |
For |
For |
For | |||||
Report on the audit result for fiscal year 2018 | For | For |
For | |||||
Report on education plans for auditors in 2019 |
For |
For |
For |
Table of Contents
Date | Agenda | Noh, Geum-Sun | Jung, Yeon-Gil | Lee, Jung-Hee | ||||
March 15, 2019 | Approval of investigation result on the agendas for the annual general meeting of shareholders | For | For | For | ||||
Approval of auditor’s report for the annual general meeting of shareholders |
For |
For |
For | |||||
Approval of amendments to guidelines for internal audit regulations and guideline for practice for KEPCO executives and staff members |
For |
For |
For | |||||
Approval of appointment of independent auditors of subsidiaries |
For |
For |
For | |||||
Report on the auditing results by the independent auditor for the consolidated and separate financial statements for the fiscal year 2018 |
For |
For |
For | |||||
April 12, 2019 |
Approval of appointment of independent auditors of subsidiaries |
For |
For |
For | ||||
Prior approval fornon-audit service for subsidiaries by the independent auditor |
For |
For |
For | |||||
Report on the Form20-F for the fiscal year 2018 to be filed with the U.S. Securities and Exchange Commission |
For |
For |
For | |||||
Auditor’s report for the fiscal year 2018 in accordance with U.S. accounting principles |
For |
For |
For | |||||
May 17, 2019 |
Approval of amendment to the guidelines for disciplinary actions |
For |
For |
For | ||||
Prior approval fornon-audit service for subsidiaries by the independent auditor |
For |
For |
For | |||||
Report on the new accounting policy according to the amendments of IFRS16 Leases |
For |
For |
For | |||||
Report on audit results for the first quarter of 2019 |
For |
For |
For | |||||
Auditor’s review report for the first quarter of 2019 |
For |
For |
For | |||||
June 21, 2019 |
Approval of amendment to the guidelines for immunity of proactive performance |
For |
Absent |
For | ||||
Independent auditor’s report on the audit plans for the fiscal year 2019 |
For |
Absent |
For | |||||
August 22, 2019 |
Approval of appointment of independent auditors of subsidiaries |
For |
For |
For | ||||
Prior approval fornon-audit service for subsidiaries by the independent auditor |
For |
For |
For | |||||
Approval of countermeasures for a lawsuit by the minority shareholders of KEPCO |
For |
For |
For | |||||
Amendments to Code of Conduct |
For |
For |
For | |||||
Independent Auditor’s review report for the first half of 2019 |
For |
For |
For | |||||
Report for deliberation on former executive’s violation of job integrity agreement |
For |
For |
For | |||||
Report on audit results for the second quarter of 2019 | For | For | For | |||||
October 22, 2019 |
Prior approval fornon-audit service for subsidiaries by the independent auditor |
For |
For |
For | ||||
Amendments to internal audit regulations |
For |
For |
For | |||||
Attendance Rate |
100% |
87.5% |
100% |
Table of Contents
V. Shareholders
1. List of shareholders as of February 7, 2019
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 | 46,063,396 | 7.18 | |||||||||||
Public(Non-Koreans) | Common Shares | 1,215 | 151,719,934 | 23.63 | ||||||||||
American depositary shares (ADS) | 1 | 28,144,998 | 4.39 | |||||||||||
Public (Koreans) | 416,981 | 87,958,691 | 13.70 | |||||||||||
|
|
|
|
|
| |||||||||
Total | 418,200 | 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 representsone-half of one share of our common stock. |
Table of Contents
VI. Directors and employees as of and for a nine-month period ended September 30, 2019 (KEPCO Only)
1. Directors
(In thousands of Won) | ||||||||||||||||
Type | Number of directors | Total remuneration | Average remuneration per person | Remarks | ||||||||||||
Standing director | 6 | 859,261 | 143,210 | Excluding the members of Audit Committee | ||||||||||||
Non-standing director | 6 | 130,725 | 22,157 | |||||||||||||
Member of Audit Committee | Standing director | 1 | 125,216 | 125,216 | ||||||||||||
Non-standing director | 2 | 45,000 | 22,500 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | 15 | 1,160,202 | 77,347 | |||||||||||||
|
|
|
|
|
|
2. Employees
(In thousands of Won) | ||||||||||||||||||||||||
Type | Number of employees | Average continuous service year | Total salaries | Average salaries per person | ||||||||||||||||||||
Regular | Non- regular | Total | ||||||||||||||||||||||
Male | 17,781 | 90 | 17,871 | 16.1 | 1,181,651,412 | 66,121 | ||||||||||||||||||
Female | 4,664 | 68 | 4,732 | 12.9 | 238,915,363 | 50,489 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 22,445 | 158 | 22,603 | 15.4 | 1,420,566,775 | 62,849 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Table of Contents
VII. Other Information Necessary for the Protection of Investors
1. Summary of shareholder’s meetings for a nine-month period ended September 30, 2019
Type | Agenda | Results | ||
Extraordinary General Meeting held on March 4, 2019 | Election of a Standing Director | Approved as proposed | ||
Approval of financial statements for the fiscal year 2018 |
Approved as proposed | |||
Annual General Meeting held on March 22, 2019 | Approval of the maximum aggregate amount of remuneration for directors in 2019 | Approved as proposed |
2. Pending legal proceedings as of September 30, 2019
(In billions of Won) | ||||||||
Type | Number of lawsuits | Amount claimed | ||||||
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants | 607 | 640 | ||||||
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs | 197 | 811 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By: | /s/ Kim,Kab-soon | |
Name: | Kim,Kab-soon | |
Title: | Vice President |
Date: December 5, 2019
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Financial Statements
September 30, 2019
(Unaudited)
(With Independent Auditor’s Review Report Thereon)
1
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Table of Contents
Independent Auditor’s Review Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
Korea Electric Power Corporation:
Report on Review of Consolidated Interim Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (the “Group”), which comprise the consolidated interim statements of financial position as of September 30, 2019, the consolidated interim statements of comprehensive income (loss) for the three and nine-month period ended September 30, 2019, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the nine-month period ended September 30, 2019 and the notes to the accompanying consolidated interim financial statement, including 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 fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“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 Review Responsibility
Our responsibility is to issue a report 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 statements 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 auditing standards generally accepted in the Republic of Korea (“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 reviews, 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 Matters
The consolidated interim statements of comprehensive income for the three and nine-month periods ended September 30, 2018, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the nine-month period ended September 30, 2018, prepared in accordance with KIFRS 1034 and presented for comparative purpose, have been reviewed by KPMG Samjong Accounting Corp. whose review report dated November 14, 2018 expressed an unqualified review conclusion.
Moreover, the consolidated statement of financial position as of December 31, 2018, 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 which have been audited by KPMG Samjong Accounting Corp., in accordance with KGAAS (not presented herein), whose report dated March 11, 2019 expressed an unqualified opinion. The accompanying consolidated statement of financial position as of December 31, 2018 presented for comparative purpose is not different, in all material respects, from the above audited consolidated statement of financial position.
November 14, 2019
This review report is effective as of November 14, 2019, 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 modification to this review report.
1
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Financial Position
As of September 30, 2019 and December 31, 2018
(Unaudited)
In millions of won | Note | September 30, 2019 | December 31, 2018 | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 5,6,7,45 | 1,358,345 | ||||||||||
Current financial assets, net | 5,6,9,11,12,13,45 | 4,429,372 | 2,359,895 | |||||||||
Trade and other receivables, net | 5,8,15,21,45,46,47 | 6,799,465 | 7,793,592 | |||||||||
Inventories, net | 14 | 6,662,877 | 7,188,253 | |||||||||
Income tax refund receivables | 52,130 | 143,214 | ||||||||||
Currentnon-financial assets | 16 | 1,031,157 | 878,888 | |||||||||
Assetsheld-for-sale | 17,42 | 36,715 | 22,881 | |||||||||
|
|
|
| |||||||||
Total current assets | 20,557,321 | 19,745,068 | ||||||||||
|
|
|
| |||||||||
Non-current assets | ||||||||||||
Non-current financial assets, net | 5,6,9,10,11,12,13,45 | 2,750,193 | 2,113,613 | |||||||||
Non-current trade and other receivables, net | 5,8,15,45,46,47 | 1,982,026 | 1,819,845 | |||||||||
Property, plant and equipment, net | 19,25,28,49 | 159,908,627 | 152,743,194 | |||||||||
Investment properties, net | 20,28 | 167,881 | 159,559 | |||||||||
Goodwill | 17 | 2,582 | 2,582 | |||||||||
Intangible assets other than goodwill, net | 22,28,46 | 995,702 | 1,225,942 | |||||||||
Investments in associates | 4,18 | 4,086,679 | 4,064,820 | |||||||||
Investments in joint ventures | 4,18 | 1,913,146 | 1,813,525 | |||||||||
Deferred tax assets | 1,345,483 | 1,233,761 | ||||||||||
Non-currentnon-financial assets | 16 | 165,399 | 327,152 | |||||||||
|
|
|
| |||||||||
Totalnon-current assets | 173,317,718 | 165,503,993 | ||||||||||
|
|
|
| |||||||||
Total Assets | 4 | 185,249,061 | ||||||||||
|
|
|
|
(Continued)
2
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Financial Position, Continued
As of September 30, 2019 and December 31, 2018
(Unaudited)
In millions of won | Note | September 30, 2019 | December 31, 2018 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables, net | 5,23,25,45,47 | 6,405,395 | ||||||||||
Current financial liabilities, net | 5,12,24,45,47 | 10,282,946 | 7,981,879 | |||||||||
Income tax payables | 223,495 | 285,420 | ||||||||||
Currentnon-financial liabilities | 21,29,30 | 6,339,487 | 5,574,041 | |||||||||
Current provisions | 27,45 | 1,981,347 | 1,594,798 | |||||||||
|
|
|
| |||||||||
Total current liabilities | 24,184,850 | 21,841,533 | ||||||||||
|
|
|
| |||||||||
Non-current liabilities | ||||||||||||
Non-current trade and other payables, net | 5,23,25,45,47 | 7,135,862 | 2,941,696 | |||||||||
Non-current financial liabilities, net | 5,12,24,45,47 | 55,908,606 | 53,364,911 | |||||||||
Non-currentnon-financial liabilities | 29,30 | 8,593,186 | 8,160,033 | |||||||||
Employee benefits liabilities, net | 26,45 | 2,318,565 | 1,645,069 | |||||||||
Deferred tax liabilities | 8,959,717 | 9,617,309 | ||||||||||
Non-current provisions | 27,45 | 16,749,708 | 16,585,748 | |||||||||
|
|
|
| |||||||||
Totalnon-current liabilities | 99,665,644 | 92,314,766 | ||||||||||
|
|
|
| |||||||||
Total Liabilities | 4 | 114,156,299 | ||||||||||
|
|
|
| |||||||||
Equity | ||||||||||||
Contributed capital | 1,31,45 | |||||||||||
Share capital | 3,209,820 | |||||||||||
Share premium | 843,758 | 843,758 | ||||||||||
|
|
|
| |||||||||
4,053,578 | 4,053,578 | |||||||||||
|
|
|
| |||||||||
Retained earnings | 32 | |||||||||||
Legal reserves | 1,604,910 | 1,604,910 | ||||||||||
Voluntary reserves | 34,785,425 | 35,906,267 | ||||||||||
Unappropriated retained earnings | 13,889,386 | 14,007,942 | ||||||||||
|
|
|
| |||||||||
50,279,721 | 51,519,119 | |||||||||||
|
|
|
| |||||||||
Other components of equity | 34 | |||||||||||
Other capital surplus | 1,226,578 | 1,234,825 | ||||||||||
Accumulated other comprehensive loss | (224,360 | ) | (358,570 | ) | ||||||||
Other equity | 13,294,973 | 13,294,973 | ||||||||||
|
|
|
| |||||||||
14,297,191 | 14,171,228 | |||||||||||
|
|
|
| |||||||||
Equity attributable to owners of the controlling company | 68,630,490 | 69,743,925 | ||||||||||
Non-controlling interests | 17, 33 | 1,394,055 | 1,348,837 | |||||||||
|
|
|
| |||||||||
Total Equity | 71,092,762 | |||||||||||
|
|
|
| |||||||||
Total Liabilities and Equity | 185,249,061 | |||||||||||
|
|
|
|
The accompanying notes are an integral part of the consolidated interim financial statements.
3
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and nine-month periods ended September 30, 2019 and 2018
(Unaudited)
In millions of won, except per share information | September 30, 2019 | September 30, 2018 | ||||||||||||||||||
Note | Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | ||||||||||||||||
Sales | 4,35,45,47 | |||||||||||||||||||
Sales of goods | 42,709,508 | 15,794,339 | 43,507,145 | |||||||||||||||||
Sales of services | 91,174 | 271,591 | 116,530 | 263,812 | ||||||||||||||||
Sales of construction services | 21 | 268,409 | 812,124 | 357,067 | 1,231,661 | |||||||||||||||
Revenue related to transfer of assets from customers | 149,074 | 438,440 | 141,908 | 450,429 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
15,912,285 | 44,231,663 | 16,409,844 | 45,453,047 | |||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Cost of sales | 14,26,43,47 | |||||||||||||||||||
Cost of sales of goods | (13,592,540 | ) | (40,777,212 | ) | (13,937,633 | ) | (41,502,856 | ) | ||||||||||||
Cost of sales of services | (233,813 | ) | (519,036 | ) | (130,643 | ) | (364,732 | ) | ||||||||||||
Cost of sales of construction services | (242,919 | ) | (737,290 | ) | (333,997 | ) | (1,138,468 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(14,069,272 | ) | (42,033,538 | ) | (14,402,273 | ) | (43,006,056 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Gross profit | 1,843,013 | 2,198,125 | 2,007,571 | 2,446,991 | ||||||||||||||||
Selling and administrative expenses | 26,36,43,47 | (603,747 | ) | (1,887,399 | ) | (612,356 | ) | (1,866,507 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Operating profit | 4 | 1,239,266 | 310,726 | 1,395,215 | 580,484 | |||||||||||||||
Othernon-operating income | 37 | 146,520 | 317,677 | 81,274 | 259,923 | |||||||||||||||
Othernon-operating expense | 37 | (27,566 | ) | (78,704 | ) | (20,912 | ) | (118,434 | ) | |||||||||||
Other gains (losses), net | 38 | (414,139 | ) | (482,815 | ) | 83,063 | (548,206 | ) | ||||||||||||
Finance income | 5,12,39 | 501,302 | 1,150,828 | 198,407 | 627,161 | |||||||||||||||
Finance expenses | 5,12,40 | (1,122,317 | ) | (2,637,285 | ) | (634,402 | ) | (1,932,660 | ) | |||||||||||
Profit (loss) related to associates, joint ventures and subsidiaries | 4,18 | |||||||||||||||||||
Share in profit of associates and joint ventures | 4,687 | 271,571 | 24,068 | 376,696 | ||||||||||||||||
Gain on disposal of investments in associates and joint ventures | — | 7,131 | — | — | ||||||||||||||||
Gain on disposal of investments in subsidiaries | — | — | — | 3 | ||||||||||||||||
Share in loss of associates and joint ventures | (19,082 | ) | (98,141 | ) | (15,430 | ) | (93,930 | ) | ||||||||||||
Loss on disposal of investments in associates and joint ventures | (2,086 | ) | (156 | ) | (2,538 | ) | (4,722 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(16,481 | ) | 180,405 | 6,100 | 278,047 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Profit (loss) before income tax | 306,585 | (1,239,168 | ) | 1,108,745 | (853,685 | ) | ||||||||||||||
Income tax benefit (expense) | 41 | (65,504 | ) | 306,915 | (371,455 | ) | 421,917 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Profit (loss) for the period | (932,253 | ) | 737,290 | (431,768 | ) |
(Continued)
4
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Comprehensive Income (Loss), Continued
For the three and nine-month periods ended September 30, 2019 and 2018
(Unaudited)
In millions of won, except per share information | September 30, 2019 | September 30, 2018 | ||||||||||||||||||
Note | Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | ||||||||||||||||
Other comprehensive income (loss) | 5,12,26,32,34 | |||||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | 26,32 | (238,882 | ) | (29,003 | ) | (85,544 | ) | |||||||||||||
Share in other comprehensive income (loss) of associates and joint ventures, net of tax | 32 | (39 | ) | (487 | ) | (385 | ) | 8,523 | ||||||||||||
Net change in fair value of equity investments at fair value through other comprehensive income (loss) | 34 | (8,434 | ) | (8,897 | ) | 8,028 | 1,483 | |||||||||||||
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 | 5,12,34 | (5,494 | ) | 9,062 | 7,758 | (27,031 | ) | |||||||||||||
Foreign currency translation of foreign operations, net of tax | 34 | 62,216 | 122,494 | (23,649 | ) | 12,679 | ||||||||||||||
Share in other comprehensive income (loss) of associates and joint ventures, net of tax | 34 | 5,548 | 41,252 | (22,558 | ) | 71,401 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Other comprehensive income (loss), net of tax | 937 | (75,458 | ) | (59,809 | ) | (18,489 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income (loss) for the period | (1,007,711 | ) | 677,481 | (450,257 | ) | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Profit (loss) attributable to: | ||||||||||||||||||||
Owners of the controlling company | 44 | (1,012,555 | ) | 708,582 | (517,907 | ) | ||||||||||||||
Non-controlling interests | 18,292 | 80,302 | 28,708 | 86,139 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(932,253 | ) | 737,290 | (431,768 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income (loss) attributable to: | ||||||||||||||||||||
Owners of the controlling company | (1,105,189 | ) | 654,362 | (542,490 | ) | |||||||||||||||
Non-controlling interests | 30,375 | 97,478 | 23,119 | 92,233 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(1,007,711 | ) | 677,481 | (450,257 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Earnings (loss) per share (in won) | 44 | |||||||||||||||||||
Basic and diluted earnings (loss) per share | (1,577 | ) | 1,104 | (807 | ) |
The accompanying notes are an integral part of the consolidated interim financial statements.
5
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Changes in Equity
For the nine-month periods ended September 30, 2019 and 2018
(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, 2018 | 53,370,558 | 14,257,309 | 71,681,445 | 1,283,196 | 72,964,641 | |||||||||||||||||||
Effect of change in accounting policy | — | 71,928 | (76,851 | ) | (4,923 | ) | — | (4,923 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted balance at January 1, 2018 | 4,053,578 | 53,442,486 | 14,180,458 | 71,676,522 | 1,283,196 | 72,959,718 | ||||||||||||||||||
Total comprehensive income (loss) for the period | ||||||||||||||||||||||||
Profit (loss) for the period | — | (517,907 | ) | — | (517,907 | ) | 86,139 | (431,768 | ) | |||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | — | (77,750 | ) | — | (77,750 | ) | (7,794 | ) | (85,544 | ) | ||||||||||||||
Share in other comprehensive income of associates and joint ventures, net of tax | — | 8,514 | — | 8,514 | 9 | 8,523 | ||||||||||||||||||
Net change in fair value of financial assets at fair value through other comprehensive income | — | — | 1,482 | 1,482 | 1 | 1,483 | ||||||||||||||||||
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 | — | — | (27,275 | ) | (27,275 | ) | 244 | (27,031 | ) | |||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | (954 | ) | (954 | ) | 13,633 | 12,679 | ||||||||||||||||
Share in other comprehensive income of associates and joint ventures, net of tax | — | — | 71,400 | 71,400 | 1 | 71,401 | ||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | (507,152 | ) | — | (507,152 | ) | (67,353 | ) | (574,505 | ) | ||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | 22 | 22 | 10,392 | 10,414 | ||||||||||||||||||
Changes in consolidation scope | — | — | — | — | 2,046 | 2,046 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (10,039 | ) | (10,039 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at September 30, 2018 | 52,348,191 | 14,225,133 | 70,626,902 | 1,310,475 | 71,937,377 | |||||||||||||||||||
|
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|
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(Continued)
6
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Changes in Equity, Continued
For the nine-month periods ended September 30, 2019 and 2018
(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, 2019 | 51,519,119 | 14,171,228 | 69,743,925 | 1,348,837 | 71,092,762 | |||||||||||||||||||
Total comprehensive income (loss) for the period | ||||||||||||||||||||||||
Net profit (loss) for the period | — | (1,012,555 | ) | — | (1,012,555 | ) | 80,302 | (932,253 | ) | |||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | — | (225,516 | ) | — | (225,516 | ) | (13,366 | ) | (238,882 | ) | ||||||||||||||
Share in other comprehensive loss of associates and joint ventures, net of tax | — | (487 | ) | — | (487 | ) | — | (487 | ) | |||||||||||||||
Net change in fair value of financial assets at fair value through other comprehensive loss | — | — | (8,897 | ) | (8,897 | ) | — | (8,897 | ) | |||||||||||||||
Others | — | (840 | ) | 840 | — | — | — | |||||||||||||||||
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 | — | — | 8,775 | 8,775 | 287 | 9,062 | ||||||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | 92,244 | 92,244 | 30,250 | 122,494 | ||||||||||||||||||
Share in other comprehensive income of associates and joint ventures, net of tax | — | — | 41,247 | 41,247 | 5 | 41,252 | ||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | — | — | — | (82,552 | ) | (82,552 | ) | ||||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | — | — | 18,186 | 18,186 | ||||||||||||||||||
Transactions between consolidated entities | — | — | (8,246 | ) | (8,246 | ) | 2,806 | (5,440 | ) | |||||||||||||||
Changes in consolidation scope | — | — | — | — | 18,968 | 18,968 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (10,039 | ) | (10,039 | ) | ||||||||||||||||
Others | — | — | — | — | 371 | 371 | ||||||||||||||||||
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| |||||||||||||
Balance at September 30, 2019 | 50,279,721 | 14,297,191 | 68,630,490 | 1,394,055 | 70,024,545 | |||||||||||||||||||
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|
The accompanying notes are an integral part of the consolidated interim financial statements.
7
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Cash Flows
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
In millions of won | September 30, 2019 | September 30, 2018 | ||||||
Cash flows from operating activities | ||||||||
Loss for the period | (431,768 | ) | ||||||
|
|
|
| |||||
Adjustments for: | ||||||||
Income tax benefit | (306,915 | ) | (421,917 | ) | ||||
Depreciation | 7,988,982 | 7,462,754 | ||||||
Amortization | 115,614 | 86,932 | ||||||
Employee benefits expense | 294,755 | 263,171 | ||||||
Bad debt expense (reversal) | (8,136 | ) | 30,217 | |||||
Interest expense | 1,537,845 | 1,407,191 | ||||||
Loss on disposal of financial assets | 490 | — | ||||||
Loss on disposal of property, plant and equipment | 43,287 | 27,874 | ||||||
Loss on abandonment of property, plant and equipment | 257,569 | 371,129 | ||||||
Loss on impairment of property, plant and equipment | 37,152 | 701,317 | ||||||
Loss on impairment of intangible assets | 513,519 | — | ||||||
Loss on disposal of intangible assets | 28 | 23 | ||||||
Increase to provisions | 365,800 | 666,152 | ||||||
Loss on foreign currency translation, net | 838,889 | 273,723 | ||||||
Gain on valuation of financial assets at fair value through profit or loss | (9,161 | ) | (9,222 | ) | ||||
Loss on valuation of financial assets at fair value through profit or loss | 1,442 | 4,242 | ||||||
Valuation and transaction gain on derivative instruments, net | (704,830 | ) | (202,721 | ) | ||||
Share in income of associates and joint ventures, net | (173,429 | ) | (282,766 | ) | ||||
Gain on disposal of financial assets | (2,584 | ) | (755 | ) | ||||
Gain on disposal of property, plant and equipment | (35,765 | ) | (91,132 | ) | ||||
Gain on disposal of intangible assets | (206 | ) | (11 | ) | ||||
Gain on disposal of associates and joint ventures | (7,131 | ) | — | |||||
Loss on disposal of associates and joint ventures | 156 | 4,722 | ||||||
Gain on disposal of subsidiaries | — | (3 | ) | |||||
Interest income | (195,998 | ) | (175,004 | ) | ||||
Dividends income | (6,002 | ) | (11,811 | ) | ||||
Others, net | 302,596 | 9,783 | ||||||
|
|
|
| |||||
10,847,967 | 10,113,888 | |||||||
|
|
|
| |||||
Changes in: | ||||||||
Trade receivables | 1,119,726 | 1,021,407 | ||||||
Non-trade receivables | 197,790 | 408,108 | ||||||
Accrued income | 898,666 | 567,421 | ||||||
Other receivables | 66,706 | (770 | ) | |||||
Other current assets | (173,524 | ) | (384,581 | ) | ||||
Inventories | (349,263 | ) | (1,037,621 | ) | ||||
Othernon-current assets | (535,919 | ) | (86,162 | ) | ||||
Trade payables | (1,409,167 | ) | (409,559 | ) | ||||
Non-trade payables | (123,249 | ) | (331,637 | ) | ||||
Accrued expenses | (885,076 | ) | (714,908 | ) | ||||
Other payables | (1,274 | ) | — | |||||
Other current liabilities | 1,050,488 | 747,259 | ||||||
Othernon-current liabilities | 427,797 | 227,709 | ||||||
Investments in associates and joint ventures (dividends received) | 167,018 | 122,164 | ||||||
Provisions | (1,329,940 | ) | (1,108,053 | ) | ||||
Payments of employee benefit obligations | (42,722 | ) | (57,652 | ) | ||||
Plan assets | (9,564 | ) | (11,547 | ) | ||||
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|
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| |||||
(1,048,422 | ) | |||||||
|
|
|
|
(Continued)
8
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Cash Flows, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
In millions of won | September 30, 2019 | September 30, 2018 | ||||||
Cash generated from operating activities | 8,633,698 | |||||||
Dividends received(available-for-sale financial assets) | 4,431 | 10,518 | ||||||
Interest paid | (1,546,746 | ) | (1,351,612 | ) | ||||
Interest received | 116,014 | 125,012 | ||||||
Income taxes paid | (326,135 | ) | (440,884 | ) | ||||
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|
|
| |||||
Net cash from operating activities | 7,231,771 | 6,976,732 | ||||||
|
|
|
| |||||
Cash flows from investing activities | ||||||||
Proceeds from disposals of associates and joint ventures | — | 1,604 | ||||||
Acquisition of associates and joint ventures | (67,268 | ) | (253,880 | ) | ||||
Proceeds from disposals of property, plant and equipment | 255,846 | 212,338 | ||||||
Acquisition of property, plant and equipment | (8,549,004 | ) | (9,166,460 | ) | ||||
Proceeds from disposals of intangible assets | 7,421 | 11 | ||||||
Acquisition of intangible assets | (143,125 | ) | (67,652 | ) | ||||
Proceeds from disposals of financial assets | 1,641,588 | 1,335,392 | ||||||
Acquisition of financial assets | (3,719,145 | ) | (3,868,179 | ) | ||||
Increase in loans | (195,468 | ) | (120,260 | ) | ||||
Collection of loans | 119,043 | 81,730 | ||||||
Increase in deposits | (201,674 | ) | (412,960 | ) | ||||
Decrease in deposits | 202,955 | 180,050 | ||||||
Proceeds from disposals of assetsheld-for-sale | 1,562 | 17,316 | ||||||
Receipt of government grants | 11,214 | 23,250 | ||||||
Net cash inflow from changes in consolidation scope | (2,820 | ) | 2,031 | |||||
Other cash outflow from investing activities, net | (97,167 | ) | (39,036 | ) | ||||
|
|
|
| |||||
Net cash used in investing activities | (10,736,042 | ) | (12,074,705 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities | ||||||||
Proceeds from short-term borrowings, net | 634,535 | 377,007 | ||||||
Proceeds from long-term borrowings and debt securities | 8,608,168 | 11,330,658 | ||||||
Repayment of long-term borrowings and debt securities | (5,164,783 | ) | (5,377,108 | ) | ||||
Payment of lease liabilities | (405,881 | ) | (117,572 | ) | ||||
Settlement of derivative instruments, net | 106,224 | 8,405 | ||||||
Change innon-controlling interest | 12,346 | 9,362 | ||||||
Dividends paid (hybrid bond) | (10,039 | ) | (13,244 | ) | ||||
Dividends paid | (84,526 | ) | (574,505 | ) | ||||
Other cash outflow from financing activities, net | — | (87 | ) | |||||
|
|
|
| |||||
Net cash from financing activities | 3,696,044 | 5,642,916 | ||||||
|
|
|
| |||||
Net increase in cash and cash equivalents before effect of exchange rate fluctuations | 191,773 | 544,943 | ||||||
Effect of exchange rate fluctuations on cash held | (4,513 | ) | 10,365 | |||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 187,260 | 555,308 | ||||||
Cash and cash equivalents at January 1 | 1,358,345 | 2,369,739 | ||||||
|
|
|
| |||||
Cash and cash equivalents at September 30 | 2,925,047 | |||||||
|
|
|
|
The accompanying notes are an integral part of the consolidated interim financial statements.
9
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
1. | Reporting Entity (Description of the controlling company) |
Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in Korean International Financial Reporting Standards (“KIFRS”) 1110 ‘Consolidated Financial Statements’, was incorporated on January 1, 1982 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO also provides power plant construction services. KEPCO’s stock was listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju,Jeollanam-do.
As of September 30, 2019, KEPCO’s share capital amounts toW3,209,820 million and KEPCO’s shareholders are as follows:
Number of shares | Percentage of ownership | |||||||
Government of the Republic of Korea | 116,841,794 | 18.20 | % | |||||
Korea Development Bank | 211,235,264 | 32.90 | % | |||||
Others (*) | 313,887,019 | 48.90 | % | |||||
|
|
|
| |||||
641,964,077 | 100.00 | % | ||||||
|
|
|
|
(*) | The number of shares held by foreign shareholders are 179,864,932 shares (28.02%) as of the most recent closing date of Register of Shareholders (February 7, 2019). |
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 its 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 KEPCO’s functional currency and the currency of the primary economic environment in which the Group operates.
10
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(4) | Use of estimates and judgments |
The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The key assumptions concerning the future, 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 are as follows:
(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 does not realize estimated future taxable income during the carryforward periods.
(iii) | Valuations of financial instruments at fair values |
The Group’s accounting policies and disclosures require the measurement of fair values, for both financial andnon-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 26).
11
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(4) | Use of estimates and judgments, continued |
(v) | Unbilled revenue |
Energy delivered but not metered nor billed is estimated at the reporting date based on consumption statistics and selling price estimates. Determination of the unbilled revenues at the end of the reporting period is sensitive to the estimated consumptions and prices based on statistics. Unbilled revenue recognized as of September 30, 2019 and 2018 areW1,263,640 million and1,131,690 million, respectively.W
(vi) | Construction contracts |
For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress towards complete satisfaction of that performance obligation. The Group applies a single method of measuring progress for each performance obligation satisfied over time and applies that method consistently to similar performance obligations and in similar circumstances. Revenue and costs are recognized based on the progress towards complete satisfaction of a performance obligation utilizing the cost-based input method at the end of the reporting period. 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 in the future, costs incurred which are not related to the performance obligation, changes in the Group’s efforts or inputs due to change of the performance obligation, etc. Total revenue is measured based on an agreed contract price; however, it may fluctuate due to the variation of performance obligations. The measurement of revenue is affected by various uncertainties resulting from unexpected future events.
(5) | Changes in accounting policies |
(i) | KIFRS 1116 ‘Leases’ |
KIFRS 1116 replaces existing leases guidance, including KIFRS 1017 ‘Lease’, KIFRS 2104 ‘Determining whether an Arrangement contains a Lease’, KIFRS 2015 ‘Operating Leases – Incentives’ and KIFRS 2027 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for most leases under a singleon-balance sheet model.
Lessor accounting under KIFRS 1116 is substantially unchanged from KIFRS 1017. Lessors will continue to classify leases as either operating or finance leases using similar principles as in KIFRS 1017.
The Group adopted KIFRS 1116 using the modified retrospective method of adoption with the date of initial application of 1 January 2019. Under this method, the standard is applied retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. The Group elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (‘short-term leases’), and lease contracts for which the underlying asset is of low value (‘leases oflow-value assets’).
12
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
The impacts on the Group’s consolidated statements of financial position on the date of initial application (January 1, 2019) are as follows:
In millions of won | Original carrying amount under KIFRS 1017 | Adjustment | New carrying amount under KIFRS 1116 | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | — | 1,358,345 | ||||||||||
Current financial assets, net | 2,359,895 | — | 2,359,895 | |||||||||
Trade and other receivables, net | 7,793,592 | — | 7,793,592 | |||||||||
Inventories, net | 7,188,253 | — | 7,188,253 | |||||||||
Income tax refund receivables | 143,214 | — | 143,214 | |||||||||
Currentnon-financial assets | 878,888 | (3,018 | ) | 875,870 | ||||||||
Assetsheld-for-sale | 22,881 | — | 22,881 | |||||||||
|
|
|
|
|
| |||||||
Total current assets | 19,745,068 | (3,018 | ) | 19,742,050 | ||||||||
|
|
|
|
|
| |||||||
Non-current assets | ||||||||||||
Non-current financial assets, net | 2,113,613 | — | 2,113,613 | |||||||||
Non-current trade and other receivables, net | 1,819,845 | (9 | ) | 1,819,836 | ||||||||
Property, plant and equipment, net | 152,743,194 | 4,588,543 | 157,331,737 | |||||||||
Investment properties, net | 159,559 | — | 159,559 | |||||||||
Goodwill | 2,582 | — | 2,582 | |||||||||
Intangible assets other than goodwill, net | 1,225,942 | — | 1,225,942 | |||||||||
Investments in associates | 4,064,820 | — | 4,064,820 | |||||||||
Investments in joint ventures | 1,813,525 | — | 1,813,525 | |||||||||
Deferred tax assets | 1,233,761 | — | 1,233,761 | |||||||||
Non-currentnon-financial assets | 327,152 | (1,327 | ) | 325,825 | ||||||||
|
|
|
|
|
| |||||||
Totalnon-current assets | 165,503,993 | 4,587,207 | 170,091,200 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,584,189 | 189,833,250 | ||||||||||
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|
13
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
In millions of won | Original carrying amount under KIFRS 1017 | Adjustment | New carrying amount under KIFRS 1116 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables, net | 506,968 | 6,912,363 | ||||||||||
Current financial liabilities, net | 7,981,879 | — | 7,981,879 | |||||||||
Income tax payables | 285,420 | — | 285,420 | |||||||||
Currentnon-financial liabilities | 5,574,041 | — | 5,574,041 | |||||||||
Current provisions | 1,594,798 | — | 1,594,798 | |||||||||
|
|
|
|
|
| |||||||
Total current liabilities | 21,841,533 | 506,968 | 22,348,501 | |||||||||
|
|
|
|
|
| |||||||
Non-current liabilities | ||||||||||||
Non-current trade and other payables, net | 2,941,696 | 4,077,221 | 7,018,917 | |||||||||
Non-current financial liabilities, net | 53,364,911 | — | 53,364,911 | |||||||||
Non-currentnon-financial liabilities | 8,160,033 | — | 8,160,033 | |||||||||
Employee benefits liabilities, net | 1,645,069 | — | 1,645,069 | |||||||||
Deferred tax liabilities | 9,617,309 | — | 9,617,309 | |||||||||
Non-current provisions | 16,585,748 | — | 16,585,748 | |||||||||
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Totalnon-current liabilities | 92,314,766 | 4,077,221 | 96,391,987 | |||||||||
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Total Liabilities | 4,584,189 | 118,740,488 | ||||||||||
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Equity | ||||||||||||
Contributed capital | — | 4,053,578 | ||||||||||
Retained earnings | 51,519,119 | — | 51,519,119 | |||||||||
Other components of equity | 14,171,228 | — | 14,171,228 | |||||||||
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| |||||||
Equity attributable to owners of the controlling company | 69,743,925 | — | 69,743,925 | |||||||||
Non-controlling interests | 1,348,837 | — | 1,348,837 | |||||||||
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Total Equity | — | 71,092,762 | ||||||||||
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| |||||||
Total Liabilities and Equity | 4,584,189 | 189,833,250 | ||||||||||
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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.
14
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
Before adoption of KIFRS 1116, the Group, as a lessee, classified a lease contract as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the Group; otherwise as an operating lease. Upon adoption of KIFRS 1116, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases oflow-value assets. The standard provides specific transition requirements and practical expedients, which has been applied by the Group.
• | Leases previously classified as finance leases |
The Group did not change the initial carrying amounts of recognized assets and liabilities at the date of initial application for leases previously classified as finance leases (i.e., theright-of-use assets and lease liabilities equal the lease assets and liabilities recognized under KIFRS 1017). The requirements of KIFRS 1116 was applied to these leases from 1 January 2019.
• | Leases previously accounted for as operating leases |
The Group recognizedright-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases oflow-value assets. Theright-of-use assets were recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognized. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application.
The incremental borrowing rate as a lessee at the date of initial application is 1.81% ~ 3.16%.
The Group also applied the available practical expedients wherein it:
• | Applied the short-term leases exemptions to leases with lease term that ends within 12 months at the date of initial application |
• | Excluded the initial direct costs from the measurement of theright-of-use asset at the date of initial application |
• | Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease |
As of September 30, 2019, the Group is reviewing the applicability of KIFRS 1116 regarding subsurface rights and the financial impact of the application.
(ii) | Summary of new accounting policies |
Set out below are the new accounting policies of the Group upon adoption of KIFRS 1116, which have been applied from the date of initial application:
• | Right-of-use assets |
The Group recognizesright-of-use assets at the commencement date of the lease.Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for anyre-measurement of lease liabilities. The cost ofright-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognizedright-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.Right-of-use assets are subject to impairment.
• | Lease liabilities |
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (includingin-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period on which the event or condition that triggers the payment occurs.
15
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in thein-substance fixed lease payments or a change in the assessment of an option to purchase the underlying asset.
• | Short-term leases and leases oflow-value assets |
The Group applies the short-term leases recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the leases oflow-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases oflow-value assets are recognized as expense on a straight-line basis over the lease term.
Book value and changes in book value ofright-of-use assets and lease liabilities during the period are described in Note 25.
(iii) | Other changes in accounting standards effective from January 1, 2019 are as follows. The Group believes that these amendments have no significant impact on the Group’s consolidated interim financial statements. |
KIFRS 2123 : Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of KIFRS 1012 Income Taxes. It does not apply to taxes or levies outside the scope of KIFRS 1012, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:
• | Whether an entity considers uncertain tax treatments separately |
• | The assumptions an entity makes about the examination of tax treatments by taxation authorities |
• | How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates |
• | How an entity considers changes in facts and circumstances |
The Group determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed.
Amendments to KIFRS 1109 : Financial Instruments
Under KIFRS 1109, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are ‘solely payments of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to KIFRS 1109 clarify that a financial asset passes the SPPI criterion regardless of an event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract.
16
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
Amendments to KIFRS 1019 : Employee Benefits
The amendments to KIFRS 1019 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to determine the current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event. An entity is also required to determine the net interest for the remainder of the period after the plan amendment, curtailment or settlement using the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event, and the discount rate used to remeasure that net defined benefit liability (asset).
Amendments to KIFRS 1028 : Long-term interests in associates and joint ventures
The amendments clarify that an entity applies KIFRS 1109 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in KIFRS 1109 applies to such long-term interests.
The amendments also clarified that, in applying KIFRS 1109, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying KIFRS 1028Investments in Associates and Joint Ventures.
Amendments to KIFRS 1103 : Business Combinations
The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its entire previously held interest in the joint operation.
An entity applies those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2019 with early application permitted.
Amendments to KIFRS 1111 : Joint Arrangements
A party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in KIFRS 1103. The amendments clarify that the previously held interests in that joint operation are not remeasured.
An entity applies those amendments to transactions in which it obtains joint control on or after the beginning of the first annual reporting period beginning on or after January 1, 2019 with early application permitted.
17
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies, continued |
Amendments to KIFRS 1012 : Income Taxes
The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where it originally recognized those past transactions or events.
An entity applies the amendments for annual reporting periods beginning on or after January 1, 2019 with early application permitted. When the entity first applies those amendments, it applies them to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period.
Amendments to KIFRS 1023 : Borrowing Costs
The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.
The entity applies the amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the entity first applies those amendments. An entity applies those amendments for annual reporting periods beginning on or after January 1, 2019 with early application permitted.
3. | Significant Accounting Policies |
The significant accounting policies applied by the Group in preparation of its consolidated interim financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements as of and for the year ended December 31, 2018, except for the changes described in Note 2.(5).
18
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
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 the Group’s the chief operating decision maker, 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 arms-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 consolidation 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.
19
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(2) | Financial information of the segments for the three and nine-month periods ended September 30, 2019 and 2018, respectively, are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Transmission and distribution | 44,172,408 | 295,434 | 1,027,377 | 15,634,375 | 43,145,031 | 672,729 | (1,478,889 | ) | 911,592 | 2,715,313 | 17,382 | 53,500 | 197,267 | 579,134 | (18,789 | ) | 133,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Nuclear) | 2,035,375 | 6,628,824 | 2,037,944 | 6,628,812 | (2,569 | ) | 12 | (22,944 | ) | 778,589 | 800,107 | 2,388,534 | 11,487 | 29,110 | 127,890 | 383,643 | (4,126 | ) | (1,847 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Electric power generation(Non-nuclear) | 6,593,542 | 18,389,805 | 6,489,504 | 17,833,957 | 104,038 | 555,848 | 525,190 | 826,213 | 987,258 | 2,928,392 | 7,829 | 19,390 | 158,543 | 489,867 | 5,565 | 48,646 | ||||||||||||||||||||||||||||||||||||||||||||||||
Plant maintenance & engineering service | 593,605 | 1,756,093 | 510,385 | 1,511,776 | 83,220 | 244,317 | 73,802 | 204,634 | 30,516 | 94,536 | 3,447 | 10,460 | 441 | 2,496 | 869 | 295 | ||||||||||||||||||||||||||||||||||||||||||||||||
Others | 276,949 | 745,086 | 183,728 | 458,631 | 93,221 | 286,455 | (6,528 | ) | 43,362 | 13,144 | 52,316 | 38,659 | 105,281 | 41,924 | 102,963 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation adjustments | (9,516,995 | ) | (27,460,553 | ) | (9,516,995 | ) | (27,460,553 | ) | — | — | (2,983 | ) | (63,183 | ) | (28,038 | ) | (74,495 | ) | (7,385 | ) | (21,743 | ) | (4,749 | ) | (20,258 | ) | — | — | ||||||||||||||||||||||||||||||||||||
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44,231,663 | — | — | 15,912,285 | 44,231,663 | 1,239,266 | 310,726 | 2,714,579 | 8,104,596 | 71,419 | 195,998 | 521,316 | 1,537,845 | (16,481 | ) | 180,405 | |||||||||||||||||||||||||||||||||||||||||||||||||
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In millions of won | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Transmission and distribution | 45,139,353 | 257,643 | 985,287 | 16,060,243 | 44,154,066 | 741,453 | (1,398,832 | ) | 868,508 | 2,679,981 | 15,313 | 44,963 | 178,271 | 529,806 | (13,534 | ) | 230,824 | |||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Nuclear) | 2,382,955 | 6,306,984 | 2,383,676 | 6,257,756 | (721 | ) | 49,228 | 511,379 | 734,951 | 781,788 | 2,337,629 | 14,131 | 24,104 | 125,893 | 377,269 | 5,587 | 8,101 | |||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation(Non-nuclear) | 6,499,838 | 19,507,672 | 6,384,969 | 18,913,196 | 114,869 | 594,476 | 31,972 | 1,103,328 | 823,609 | 2,448,237 | 8,984 | 23,503 | 150,488 | 433,159 | 14,599 | 38,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Plant maintenance & engineering service | 598,982 | 1,737,019 | 516,972 | 1,491,697 | 82,010 | 245,322 | 54,306 | 159,534 | 28,467 | 85,603 | 3,336 | 9,161 | 1,078 | 3,034 | (552 | ) | 895 | |||||||||||||||||||||||||||||||||||||||||||||||
Others | 256,790 | 732,024 | 103,347 | 322,069 | 153,443 | 409,955 | 58,119 | 113,479 | 13,855 | 41,303 | 32,987 | 95,307 | 31,133 | 85,556 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation adjustments | (9,646,607 | ) | (27,970,005 | ) | (9,646,607 | ) | (27,970,005 | ) | — | — | (2,014 | ) | (131,976 | ) | (15,048 | ) | (43,067 | ) | (7,863 | ) | (22,034 | ) | (6,980 | ) | (21,633 | ) | — | — | ||||||||||||||||||||||||||||||||||||
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45,453,047 | — | — | 16,409,844 | 45,453,047 | 1,395,215 | 580,484 | 2,501,179 | 7,549,686 | 66,888 | 175,004 | 479,883 | 1,407,191 | 6,100 | 278,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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20
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(3) | Information related to segment assets and segment liabilities as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Segment | Segment assets | Investments in associates and joint ventures | Acquisition of non- current assets | Segment liabilities | ||||||||||||
Transmission and distribution | 3,767,345 | 4,122,917 | 55,232,008 | |||||||||||||
Electric power generation (Nuclear) | 57,559,385 | 61,422 | 1,483,369 | 31,937,661 | ||||||||||||
Electric power generation(Non-nuclear) | 53,704,844 | 2,122,298 | 2,774,928 | 31,873,525 | ||||||||||||
Plant maintenance & engineering service | 3,376,305 | 48,760 | 47,380 | 1,127,621 | ||||||||||||
Others | 7,914,823 | — | 282,523 | 3,533,780 | ||||||||||||
Consolidation adjustments | (36,354,520 | ) | — | (18,988 | ) | 145,899 | ||||||||||
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5,999,825 | 8,692,129 | 123,850,494 | ||||||||||||||
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In millions of won | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Segment | Segment assets | Investments in associates and joint ventures | Acquisition of non- current assets | Segment liabilities | ||||||||||||
Transmission and distribution | 3,671,897 | 6,323,504 | 53,404,610 | |||||||||||||
Electric power generation (Nuclear) | 55,792,704 | 43,038 | 2,187,077 | 30,484,104 | ||||||||||||
Electric power generation(Non-nuclear) | 49,296,392 | 2,114,203 | 3,435,222 | 27,558,156 | ||||||||||||
Plant maintenance & engineering service | 3,431,068 | 49,207 | 111,393 | 1,200,390 | ||||||||||||
Others | 7,816,885 | — | 382,978 | 3,165,286 | ||||||||||||
Consolidation adjustments | (38,574,367 | ) | — | (62,717 | ) | (1,656,247 | ) | |||||||||
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5,878,345 | 12,377,457 | 114,156,299 | ||||||||||||||
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(4) | Geographic information |
Electricity sales, the main operations of the Group, are conducted in the Republic of Korea where the controlling company is located. The following information on revenue from external customers andnon-current assets is determined by the location of the customers and the assets:
In millions of won | Revenue from external customers | Non-current assets (*2) | ||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||
Geographical unit | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | ||||||||||||||||||||
Domestic | 43,149,004 | 15,903,653 | 43,862,524 | 164,377,277 | 157,037,428 | |||||||||||||||||||
Overseas (*1) | 355,179 | 1,082,659 | 506,191 | 1,590,523 | 2,862,739 | 3,299,346 | ||||||||||||||||||
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44,231,663 | 16,409,844 | 45,453,047 | 167,240,016 | 160,336,774 | ||||||||||||||||||||
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(*1) | Middle East and other Asian countries make up the majority of overseas revenue andnon-current assets. Since the overseas revenue ornon-current assets attributable to particular countries are not material, they are not disclosed individually. |
(*2) | Amounts exclude financial assets and deferred tax assets. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(5) | Information on significant customers |
There is no individual customer comprising more than 10% of the Group’s revenue for the nine-month periods ended September 30, 2019 and 2018.
5. | Classification of Financial Instruments |
(1) | Classification of financial assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
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 | — | 1,545,605 | — | 1,545,605 | ||||||||||||||||
Current financial assets | ||||||||||||||||||||
Current financial assets at fair value through profit or loss | 2,105,295 | — | — | — | 2,105,295 | |||||||||||||||
Current financial assets at amortized costs | — | — | 12,053 | — | 12,053 | |||||||||||||||
Current derivative assets | 46,953 | — | — | 62,440 | 109,393 | |||||||||||||||
Other financial assets | — | — | 2,202,631 | — | 2,202,631 | |||||||||||||||
Trade and other receivables | — | — | 6,799,465 | — | 6,799,465 | |||||||||||||||
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2,152,248 | — | 10,559,754 | 62,440 | 12,774,442 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-current assets |
| |||||||||||||||||||
Non-current financial assets | ||||||||||||||||||||
Non-current financial assets at fair value through profit or loss | 645,539 | — | — | — | 645,539 | |||||||||||||||
Non-current financial assets at fair value through other comprehensive income | — | 394,372 | — | — | 394,372 | |||||||||||||||
Non-current financial assets at amortized costs | — | — | 1,220 | — | 1,220 | |||||||||||||||
Non-current derivative assets | 265,801 | — | — | 229,377 | 495,178 | |||||||||||||||
Other financial assets | — | — | 1,213,884 | — | 1,213,884 | |||||||||||||||
Trade and other receivables | — | — | 1,982,026 | — | 1,982,026 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
911,340 | 394,372 | 3,197,130 | 229,377 | 4,732,219 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
394,372 | 13,756,884 | 291,817 | 17,506,661 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
22
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(1) | Classification of financial assets as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won | December 31, 2018 | |||||||||||||||||||
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 | — | 1,358,345 | — | 1,358,345 | ||||||||||||||||
Current financial assets | ||||||||||||||||||||
Current financial assets at fair value through profit or loss | 313,893 | — | — | — | 313,893 | |||||||||||||||
Current financial assets at amortized costs | — | — | 11,956 | — | 11,956 | |||||||||||||||
Current derivative assets | 13,936 | — | — | 28,171 | 42,107 | |||||||||||||||
Other financial assets | — | — | 1,991,939 | — | 1,991,939 | |||||||||||||||
Trade and other receivables | — | — | 7,793,592 | — | 7,793,592 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
327,829 | — | 11,155,832 | 28,171 | 11,511,832 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-current assets |
| |||||||||||||||||||
Non-current financial assets | ||||||||||||||||||||
Non-current financial assets at fair value through profit or loss | 607,042 | — | — | — | 607,042 | |||||||||||||||
Non-current financial assets at fair value through other comprehensive income | — | 399,495 | — | — | 399,495 | |||||||||||||||
Non-current financial assets at amortized costs | — | — | 2,086 | — | 2,086 | |||||||||||||||
Non-current derivative assets | 23,695 | — | — | 36,533 | 60,228 | |||||||||||||||
Other financial assets | — | — | 1,044,762 | — | 1,044,762 | |||||||||||||||
Trade and other receivables | — | — | 1,819,845 | — | 1,819,845 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
630,737 | 399,495 | 2,866,693 | 36,533 | 3,933,458 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
399,495 | 14,022,525 | 64,704 | 15,445,290 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
23
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(2) | Classification of financial liabilities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Financial liabilities at fair value through profit or loss | Financial liabilities recognized at amortized cost | Derivative liabilities (applying hedge accounting) | Total | |||||||||||||
Current liabilities | ||||||||||||||||
Borrowings | 1,659,161 | — | 1,659,161 | |||||||||||||
Debt securities | — | 8,551,715 | — | 8,551,715 | ||||||||||||
Derivative liabilities | 2,690 | — | 69,380 | 72,070 | ||||||||||||
Trade and other payables | — | 5,357,575 | — | 5,357,575 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
2,690 | 15,568,451 | 69,380 | 15,640,521 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current liabilities | ||||||||||||||||
Borrowings | — | 3,781,895 | — | 3,781,895 | ||||||||||||
Debt securities | — | 52,020,093 | — | 52,020,093 | ||||||||||||
Derivative liabilities | 44,478 | — | 62,140 | 106,618 | ||||||||||||
Trade and other payables | — | 7,135,862 | — | 7,135,862 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
44,478 | 62,937,850 | 62,140 | 63,044,468 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
78,506,301 | 131,520 | 78,684,989 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
In millions of won | December 31, 2018 | |||||||||||||||
Financial liabilities at fair value through profit or loss | Financial liabilities recognized at amortized cost | Derivative liabilities (applying hedge accounting) | Total | |||||||||||||
Current liabilities | ||||||||||||||||
Borrowings | 1,172,624 | — | 1,172,624 | |||||||||||||
Debt securities | — | 6,788,824 | — | 6,788,824 | ||||||||||||
Derivative liabilities | 13,706 | — | 6,725 | 20,431 | ||||||||||||
Trade and other payables | — | 6,405,395 | — | 6,405,395 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
13,706 | 14,366,843 | 6,725 | 14,387,274 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current liabilities | ||||||||||||||||
Borrowings | — | 3,258,015 | — | 3,258,015 | ||||||||||||
Debt securities | — | 49,815,164 | — | 49,815,164 | ||||||||||||
Derivative liabilities | 85,304 | — | 206,428 | 291,732 | ||||||||||||
Trade and other payables | — | 2,941,696 | — | 2,941,696 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
85,304 | 56,014,875 | 206,428 | 56,306,607 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
70,381,718 | 213,153 | 70,693,881 | ||||||||||||||
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|
|
|
|
|
|
24
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(3) | Classification of comprehensive income from financial instruments for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||
Cash and cash equivalents | Interest income | 57,917 | 15,456 | 36,466 | ||||||||||||||
Financial assets at fair value through profit or loss | Interest income | 1,358 | 4,613 | 145 | �� | 435 | ||||||||||||
Gain (loss) on valuation of financial assets | (376 | ) | 7,719 | 3,380 | 4,980 | |||||||||||||
Gain (loss) on disposal of financial assets | 1,391 | 2,094 | 83 | 755 | ||||||||||||||
Financial assets at fair value through other comprehensive income | Dividends income | 2,262 | 6,002 | — | 11,811 | |||||||||||||
Financial assets at amortized cost | Interest income | 6 | 31 | 22 | 63 | |||||||||||||
Loans and receivables | Interest income | 13,427 | 39,465 | 10,835 | 27,631 | |||||||||||||
Trade and other receivables | Interest income | 25,216 | 66,248 | 22,403 | 65,474 | |||||||||||||
Short-term financial instruments | Interest income | 8,644 | 27,330 | 12,262 | 35,166 | |||||||||||||
Long-term financial instruments | Interest income | — | 1 | 5,765 | 9,769 | |||||||||||||
Other financial assets | Interest income | 96 | 393 | — | — | |||||||||||||
Financial liabilities carried at amortized cost | Interest expense of borrowings and debt securities | 359,155 | 1,059,024 | 342,755 | 992,548 | |||||||||||||
Interest expense of trade and other payables | 17,969 | 49,275 | 10,366 | 33,346 | ||||||||||||||
Interest expense of others | 144,192 | 429,546 | 126,762 | 381,297 | ||||||||||||||
Loss on foreign currency transactions and translations | (476,570 | ) | (872,189 | ) | 77,901 | (304,181 | ) | |||||||||||
Derivatives (trading) | Loss on valuation of derivatives | 156,956 | 317,810 | (64,496 | ) | 8,662 | ||||||||||||
Loss on transaction of derivatives | 13,668 | 45,563 | 14,630 | 37,268 | ||||||||||||||
Derivatives (applying hedge accounting) | Gain on valuation of derivatives (profit or loss) | 139,704 | 290,033 | (51,914 | ) | 152,169 | ||||||||||||
Gain (loss) on valuation of derivatives (equity, before tax) | (7,627 | ) | 26,536 | 13,512 | (52,444 | ) | ||||||||||||
Gain (loss) on transaction of derivatives | 34,557 | 51,424 | 3,778 | 4,622 |
25
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
6. | Restricted Deposits |
Restricted deposits as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||
Cash and cash equivalents | Deposits for government project | 12,747 | ||||||||
Collateral provided for borrowings | 92,317 | 100,998 | ||||||||
Collateral provided for lawsuit | 3 | 3 | ||||||||
Deposits for transmission regional support program | 7,086 | 4,337 | ||||||||
Decommissioning costs of nuclear power plants | — | 604 | ||||||||
Short-term financial instruments | Restriction on withdrawal related to‘win-win growth program’ for small and medium enterprises | 89,000 | 34,000 | |||||||
Current financial assets at fair value through profit or loss | Decommissioning costs of nuclear power plants | — | 29,451 | |||||||
Non-current financial assets at fair value through profit or loss | Decommissioning costs of nuclear power plants | 570,953 | 498,555 | |||||||
Long-term financial instruments | Escrow | 74 | 69 | |||||||
Guarantee deposits for banking accounts at oversea branches | 338 | 315 | ||||||||
Collateral provided for borrowings | 11,745 | — | ||||||||
Decommissioning costs of nuclear power plants | 220,465 | 245,896 | ||||||||
Funds for developing small and medium enterprises (*) | 200,000 | 200,000 | ||||||||
|
|
|
| |||||||
1,126,975 | ||||||||||
|
|
|
|
(*) | Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for high potential businesses as of September 30, 2019 and December 31, 2018. |
7. | Cash and Cash Equivalents |
Cash and cash equivalents as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Cash | 138 | |||||||
Other demand deposits | 985,201 | 927,650 | ||||||
Short-term deposits classified as cash equivalents | 296,246 | 211,424 | ||||||
Short-term investments classified as cash equivalents | 264,071 | 219,133 | ||||||
|
|
|
| |||||
1,358,345 | ||||||||
|
|
|
|
26
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
8. | Trade and Other Receivables |
(1) | Trade and other receivables as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Trade receivables | (216,938 | ) | — | 6,012,198 | ||||||||||||
Other receivables | 804,900 | (15,456 | ) | (2,177 | ) | 787,267 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
7,034,036 | (232,394 | ) | (2,177 | ) | 6,799,465 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Trade receivables | 377,299 | (244 | ) | (418 | ) | 376,637 | ||||||||||
Other receivables | 1,699,638 | (89,598 | ) | (4,651 | ) | 1,605,389 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
2,076,937 | (89,842 | ) | (5,069 | ) | 1,982,026 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(322,236 | ) | (7,246 | ) | 8,781,491 | ||||||||||||
|
|
|
|
|
|
|
|
In millions of won | December 31, 2018 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Trade receivables | (215,775 | ) | — | 7,087,290 | ||||||||||||
Other receivables | 728,560 | (20,231 | ) | (2,027 | ) | 706,302 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
8,031,625 | (236,006 | ) | (2,027 | ) | 7,793,592 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Trade receivables | 415,318 | (93 | ) | (448 | ) | 414,777 | ||||||||||
Other receivables | 1,496,464 | (84,495 | ) | (6,901 | ) | 1,405,068 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
1,911,782 | (84,588 | ) | (7,349 | ) | 1,819,845 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(320,594 | ) | (9,376 | ) | 9,613,437 | ||||||||||||
|
|
|
|
|
|
|
|
27
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
8. | Trade and Other Receivables, Continued |
(2) | Other receivables as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Non-trade receivables | (15,102 | ) | — | 321,483 | ||||||||||||
Accrued income | 77,328 | — | — | 77,328 | ||||||||||||
Deposits | 272,341 | — | (2,177 | ) | 270,164 | |||||||||||
Finance lease receivables | 103,982 | (354 | ) | — | 103,628 | |||||||||||
Others | 14,664 | — | — | 14,664 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
804,900 | (15,456 | ) | (2,177 | ) | 787,267 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Non-trade receivables | 134,770 | (80,338 | ) | — | 54,432 | |||||||||||
Accrued income | 1,386 | — | — | 1,386 | ||||||||||||
Deposits | 333,603 | — | (4,651 | ) | 328,952 | |||||||||||
Finance lease receivables | 1,117,700 | (563 | ) | — | 1,117,137 | |||||||||||
Others | 112,179 | (8,697 | ) | — | 103,482 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
1,699,638 | (89,598 | ) | (4,651 | ) | 1,605,389 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(105,054 | ) | (6,828 | ) | 2,392,656 | ||||||||||||
|
|
|
|
|
|
|
|
In millions of won | December 31, 2018 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Non-trade receivables | (19,940 | ) | — | 278,647 | ||||||||||||
Accrued income | 102,023 | — | — | 102,023 | ||||||||||||
Deposits | 228,466 | — | (2,027 | ) | 226,439 | |||||||||||
Finance lease receivables | 84,688 | (291 | ) | — | 84,397 | |||||||||||
Others | 14,796 | — | — | 14,796 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
728,560 | (20,231 | ) | (2,027 | ) | 706,302 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Non-trade receivables | 136,432 | (77,475 | ) | — | 58,957 | |||||||||||
Deposits | 376,211 | — | (6,901 | ) | 369,310 | |||||||||||
Finance lease receivables | 898,658 | (842 | ) | — | 897,816 | |||||||||||
Others | 85,163 | (6,178 | ) | — | 78,985 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
1,496,464 | (84,495 | ) | (6,901 | ) | 1,405,068 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(104,726 | ) | (8,928 | ) | 2,111,370 | ||||||||||||
|
|
|
|
|
|
|
|
(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. But 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. |
28
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
8. | Trade and Other Receivables, Continued |
(4) | Aging analysis of trade receivables as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Trade receivables: (not overdue) | 7,419,648 | |||||||
|
|
|
| |||||
Trade receivables: (impairment reviewed) | 271,892 | 298,735 | ||||||
|
|
|
| |||||
Less than 60 days | 11,819 | 2,525 | ||||||
60 ~ 90 days | 28,099 | 37,266 | ||||||
90 ~ 120 days | 21,691 | 16,033 | ||||||
120 days ~ 1 year | 61,885 | 46,204 | ||||||
Over 1 year | 148,398 | 196,707 | ||||||
|
|
|
| |||||
6,606,435 | 7,718,383 | |||||||
Less: allowance for doubtful accounts | (217,182 | ) | (215,868 | ) | ||||
Less: present value discount | (418 | ) | (448 | ) | ||||
|
|
|
| |||||
7,502,067 | ||||||||
|
|
|
|
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 nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Trade receivables | Other receivables | Trade receivables | Other receivables | |||||||||||||
Beginning balance | 104,726 | 173,583 | 78,008 | |||||||||||||
Effect of change in accounting policy | — | — | 6,641 | 128 | ||||||||||||
Loss allowance after adjusted under KIFRS 1109 | 215,868 | 104,726 | 180,224 | 78,136 | ||||||||||||
Bad debt expense | 26,505 | 7,281 | 41,498 | 17,817 | ||||||||||||
Write-off, etc. | (8,069 | ) | (550 | ) | (7,696 | ) | (244 | ) | ||||||||
Reversal | (41,922 | ) | (36 | ) | (1,726 | ) | (143 | ) | ||||||||
Others | 24,800 | (6,367 | ) | 3,568 | 9,160 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending balance | 105,054 | 215,868 | 104,726 | |||||||||||||
|
|
|
|
|
|
|
|
29
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
9. | Financial assets at fair value through profit or loss |
Financial assets at fair value through profit or loss as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
Beneficiary Certificate | 245,381 | 100 | 320,148 | |||||||||||||
Cooperative | — | 5,147 | — | 5,052 | ||||||||||||
Other | 2,081,446 | 190,291 | 313,793 | 83,586 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
2,105,295 | 440,819 | 313,893 | 408,786 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Financial assets designated as at fair value through profit or loss | ||||||||||||||||
Debt with embedded derivatives | — | 151,544 | — | 187,483 | ||||||||||||
Other | — | 53,176 | — | 10,773 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | 204,720 | — | 198,256 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
645,539 | 313,893 | 607,042 | ||||||||||||||
|
|
|
|
|
|
|
|
10. | Financial assets at fair value through other comprehensive income |
(1) | Changes in financial assets at fair value through other comprehensive income for the nine-month period ended September 30, 2019 and the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposal | Valuation | Impairment | Others | Ending balance | ||||||||||||||||||||||
Listed | — | — | (10,035 | ) | — | 3,801 | 203,822 | |||||||||||||||||||||
Unlisted | 189,439 | — | (916 | ) | 22 | — | 2,005 | 190,550 | ||||||||||||||||||||
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| |||||||||||||||
399,495 | — | (916 | ) | (10,013 | ) | — | 5,806 | 394,372 | ||||||||||||||||||||
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| |||||||||||||||
Current financial assets at fair value through other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||
Non-current financial assets at fair value through other comprehensive income | 399,495 | — | (916 | ) | (10,013 | ) | — | 5,806 | 394,372 |
In millions of won | December 31, 2018 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisition | Disposal | Valuation | Impairment | Others | Ending balance | |||||||||||||||||||||||||
Listed | 274,453 | — | (1 | ) | (63,007 | ) | — | (1,389 | ) | 210,056 | ||||||||||||||||||||||
Unlisted | — | 197,450 | — | — | (12,070 | ) | — | 4,059 | 189,439 | |||||||||||||||||||||||
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| |||||||||||||||||
— | 471,903 | — | (1 | ) | (75,077 | ) | — | 2,670 | 399,495 | |||||||||||||||||||||||
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Current financial assets at fair value through other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Non-current financial assets at fair value through other comprehensive income | — | 471,903 | — | (1 | ) | (75,077 | ) | — | 2,670 | 399,495 |
30
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Listed | ||||||||||||||||||||
Korea District Heating Corp. | 2,264,068 | 19.55 | % | 112,977 | 112,977 | |||||||||||||||
Ssangyong Motor Co., Ltd. | 38,568 | 0.03 | % | 428 | 111 | 111 | ||||||||||||||
Korea Line Corp. | 18 | 0.00 | % | 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 | 54 | 54 | ||||||||||||||
PAN Ocean Co., Ltd. | 1,492 | 0.00 | % | 14 | 7 | 7 | ||||||||||||||
Dongbu Corporation | 955 | 0.02 | % | 12 | 9 | 9 | ||||||||||||||
KSP Co., Ltd. | 22,539 | 0.08 | % | 24 | 37 | 37 | ||||||||||||||
STX Heavy Industries Co., Ltd. | 8,639 | 0.13 | % | 191 | 21 | 21 | ||||||||||||||
Codes Combine Co., Ltd. | 291 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
PT Adaro Energy Tbk | 480,000,000 | 1.50 | % | 71,554 | 52,508 | 52,508 | ||||||||||||||
Energy Fuels Inc. | 1,711,814 | 1.91 | % | 16,819 | 3,977 | 3,977 | ||||||||||||||
Baralaba Coal Company Limited | 99,763 | 0.07 | % | 18,445 | — | — | ||||||||||||||
Denison Mines Corp. | 58,284,000 | 10.42 | % | 84,134 | 33,854 | 33,854 | ||||||||||||||
Fission 3.0 | 75,000 | 0.14 | % | — | 4 | 4 | ||||||||||||||
Fission Uranium Corp. | 800,000 | 0.16 | % | 785 | 261 | 261 | ||||||||||||||
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| |||||||||||||||
365,843 | 203,822 | 203,822 | ||||||||||||||||||
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| |||||||||||||||
Unlisted(*1) | ||||||||||||||||||||
Intellectual Discovery Co., Ltd. | 1,000,000 | 8.81 | % | 5,000 | 954 | 954 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.35 | % | 200 | 200 | 200 | ||||||||||||||
Navanakorn Electric Co., Ltd. (*2) | 4,442,800 | 26.93 | % | 17,216 | 18,400 | 18,400 | ||||||||||||||
PT. Kedap Sayaaq | 671 | 10.00 | % | 18,540 | — | — | ||||||||||||||
Set Holding (*3) | 1,100,220 | 2.50 | % | 229,255 | 161,983 | 161,983 | ||||||||||||||
PT. Cirebon Energi Prasarana | 22,420 | 10.00 | % | 2,612 | 2,693 | 2,693 | ||||||||||||||
KODE NOVUS I LLC | — | 10.00 | % | — | — | — | ||||||||||||||
Others (*4) | 9,499 | 6,320 | 6,320 | |||||||||||||||||
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| |||||||||||||||
282,322 | 190,550 | 190,550 | ||||||||||||||||||
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| |||||||||||||||
394,372 | 394,372 | |||||||||||||||||||
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|
(*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) | Although the Group holds more than 20% of the equity shares of these investments, the Group cannot exercise significant influence. |
(*3) | 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 for the nine-month period ended September 30, 2019. |
(*4) | Equity securities acquired throughdebt-for-equity swaps of electricity rate bonds, etc. It consists of 214 companies including Borneo Co., Ltd. |
31
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won | December 31, 2018 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Listed | ||||||||||||||||||||
Korea District Heating Corp. | 2,264,068 | 19.55 | % | 129,051 | 129,051 | |||||||||||||||
Ssangyong Motor Co., Ltd. | 38,568 | 0.03 | % | 428 | 153 | 153 | ||||||||||||||
Korea Line Corp. | 18 | 0.00 | % | 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 | 61 | 61 | ||||||||||||||
PAN Ocean Co., Ltd. | 1,492 | 0.00 | % | 14 | 7 | 7 | ||||||||||||||
Dongbu Corporation | 955 | 0.02 | % | 12 | 7 | 7 | ||||||||||||||
KSP Co., Ltd. | 22,539 | 0.08 | % | 24 | 32 | 32 | ||||||||||||||
STX Heavy Industries Co., Ltd. | 5,057 | 0.13 | % | 191 | 29 | 29 | ||||||||||||||
Codes Combine Co., Ltd. | 291 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
PT Adaro Energy Tbk | 480,000,000 | 1.50 | % | 71,554 | 44,790 | 44,790 | ||||||||||||||
Energy Fuels Inc. | 1,711,814 | 1.91 | % | 16,819 | 5,435 | 5,435 | ||||||||||||||
Baralaba Coal Company Limited | 99,763 | 0.07 | % | 18,445 | — | — | ||||||||||||||
Denison Mines Corp. | 58,284,000 | 10.42 | % | 84,134 | 30,122 | 30,122 | ||||||||||||||
Fission 3.0 | 75,000 | 0.14 | % | — | 13 | 13 | ||||||||||||||
Fission Uranium Corp. | 800,000 | 0.16 | % | 785 | 354 | 354 | ||||||||||||||
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| |||||||||||||||
365,843 | 210,056 | 210,056 | ||||||||||||||||||
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|
|
| |||||||||||||||
Unlisted(*1) | ||||||||||||||||||||
Intellectual Discovery Co., Ltd. | 1,000,000 | 8.81 | % | 5,000 | 954 | 954 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.35 | % | 200 | 200 | 200 | ||||||||||||||
DS POWER Co., Ltd. | 580,000 | 2.34 | % | 2,900 | 916 | 916 | ||||||||||||||
Navanakorn Electric Co., Ltd. (*2) | 4,442,800 | 26.93 | % | 17,216 | 17,126 | 17,126 | ||||||||||||||
PT. Kedap Sayaaq | 671 | 10.00 | % | 18,540 | — | — | ||||||||||||||
Set Holding (*3) | 1,100,220 | 2.50 | % | 229,255 | 161,983 | 161,983 | ||||||||||||||
PT. Cirebon Energi Prasarana | 22,420 | 10.00 | % | 2,612 | 2,507 | 2,507 | ||||||||||||||
KODE NOVUS I LLC (*4) | — | 10.00 | % | — | — | — | ||||||||||||||
Others (*5) | 8,947 | 5,753 | 5,753 | |||||||||||||||||
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| |||||||||||||||
284,670 | 189,439 | 189,439 | ||||||||||||||||||
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| |||||||||||||||
399,495 | 399,495 | |||||||||||||||||||
|
|
|
|
|
|
(*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) | Although the Group holds more than 20% of the equity shares of these investments, the Group cannot exercise significant influence. |
(*3) | The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2018. |
(*4) | This is reclassified to financial assets at FVOCI due to loss of significant influence of the Group during the year ended December 31, 2018. |
(*5) | Equity securities acquired throughdebt-for-equity swaps of electricity rate bonds, etc. It consists of 180 companies including Borneo Co., Ltd. |
32
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
11. | Financial assets at amortized cost |
Financial assets at amortized cost as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 1,273 | ||||||||||||||||
Financial bonds | 12,000 | — | — | — | 12,000 | |||||||||||||||
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|
|
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|
|
| |||||||||||
— | — | — | 13,273 | |||||||||||||||||
|
|
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|
|
|
|
|
|
| |||||||||||
Current | — | — | — | 12,053 | ||||||||||||||||
Non-current | 1,220 | — | — | — | 1,220 | |||||||||||||||
In millions of won | December 31, 2018 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 3,042 | ||||||||||||||||
Financial bonds | 11,000 | — | — | — | 11,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
— | — | — | 14,042 | |||||||||||||||||
|
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|
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|
|
|
| |||||||||||
Current | — | — | — | 11,956 | ||||||||||||||||
Non-current | 2,086 | — | — | — | 2,086 |
12. | Derivatives |
(1) | Derivatives as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Derivative assets | ||||||||||||||||
Currency forward | 61,243 | 2,128 | 12,606 | |||||||||||||
Currency swap | 105,380 | 430,059 | 39,979 | 43,436 | ||||||||||||
Interest rate swap | — | 3,876 | — | 2,342 | ||||||||||||
Others (*1) | — | — | — | 1,844 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
495,178 | 42,107 | 60,228 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative liabilities | ||||||||||||||||
Currency forward | — | 1,956 | — | |||||||||||||
Currency swap | 59,240 | 30,449 | 14,881 | 233,690 | ||||||||||||
Interest rate swap | 10,139 | 76,169 | 1,439 | 58,042 | ||||||||||||
Others (*2) | 2,156 | — | 2,155 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
106,618 | 20,431 | 291,732 | ||||||||||||||
|
|
|
|
|
|
|
|
(*1) | The Group had a put option to sell shares of DS POWER Co., Ltd. and the fair value of the option is recorded in ‘Others’ in the prior year. The Group sold their shares during the nine-month period ended September 30, 2019. |
(*2) | 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’. |
33
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of September 30, 2019 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty | Contract date | Maturity date | Contract amounts | Contract exchange rate (in won) | ||||||||||||||||
Pay | Receive | |||||||||||||||||||
Hana Bank | 2014.04.10 | 2021.07.12 | USD 52,000 | |||||||||||||||||
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 | |||||||||||||||
Korea Development Bank | 2019.09.02 | 2019.10.07 | 8,477 | USD 7,000 | 1,211.00 | |||||||||||||||
Hana Bank | 2019.09.03 | 2019.10.07 | 12,143 | USD 10,000 | 1,214.30 | |||||||||||||||
Hana Bank | 2019.09.04 | 2019.10.07 | 6,026 | USD 5,000 | 1,205.20 | |||||||||||||||
CCB | 2019.09.04 | 2019.10.08 | 6,039 | USD 5,000 | 1,207.83 | |||||||||||||||
Credit Agricole | 2019.09.05 | 2019.10.10 | 11,988 | USD 10,000 | 1,198.80 | |||||||||||||||
Nonghyup Bank | 2019.09.05 | 2019.10.10 | 5,996 | USD 5,000 | 1,199.10 | |||||||||||||||
Woori Bank | 2019.09.06 | 2019.10.10 | 11,961 | USD 10,000 | 1,196.10 | |||||||||||||||
Morgan Stanley | 2019.09.09 | 2019.10.11 | 11,915 | USD 10,000 | 1,191.45 | |||||||||||||||
Standard Chartered | 2019.09.10 | 2019.10.11 | 11,912 | USD 10,000 | 1,191.20 | |||||||||||||||
Hana Bank | 2019.09.19 | 2019.10.21 | 11,943 | USD 10,000 | 1,194.25 | |||||||||||||||
Kookmin Bank | 2019.09.20 | 2019.10.23 | 5,951 | USD 5,000 | 1,190.20 | |||||||||||||||
CCB | 2019.09.24 | 2019.10.25 | 5,959 | USD 5,000 | 1,191.85 | |||||||||||||||
Hana Bank | 2019.09.25 | 2019.10.02 | 1,846 | EUR 1,399 | 1,319.50 | |||||||||||||||
Shinhan Bank | 2019.09.27 | 2019.10.28 | 12,006 | USD 10,000 | 1,200.57 | |||||||||||||||
Nonghyup Bank | 2019.09.27 | 2019.10.28 | 6,000 | USD 5,000 | 1,200.00 | |||||||||||||||
Mizuho Bank | 2019.09.30 | 2019.10.30 | 11,985 | USD 10,000 | 1,198.48 | |||||||||||||||
BNP Paribas | 2019.09.06 | 2019.10.07 | 6,579 | USD 5,500 | 1,196.15 | |||||||||||||||
Shinhan Bank | 2019.09.10 | 2019.10.02 | 8,341 | USD 7,000 | 1,191.50 | |||||||||||||||
CCB | 2019.09.10 | 2019.10.07 | 5,361 | USD 4,500 | 1,191.30 | |||||||||||||||
Shinhan Bank | 2019.09.16 | 2019.10.02 | 1,776 | USD 1,500 | 1,183.68 | |||||||||||||||
Shinhan Bank | 2019.09.16 | 2019.10.07 | 2,959 | USD 2,500 | 1,183.43 | |||||||||||||||
Korea Development Bank | 2019.09.17 | 2019.10.14 | 14,837 | USD 12,500 | 1,186.98 | |||||||||||||||
Hana Bank | 2019.09.18 | 2019.10.14 | 10,684 | USD 9,000 | 1,187.09 | |||||||||||||||
Korea Development Bank | 2019.09.20 | 2019.10.14 | 6,547 | USD 5,500 | 1,190.45 | |||||||||||||||
Credit Agricole | 2019.09.26 | 2019.10.14 | 4,795 | USD 4,000 | 1,198.70 | |||||||||||||||
Societe Generale | 2019.09.26 | 2019.10.23 | 8,390 | USD 7,000 | 1,198.56 | |||||||||||||||
MUFG | 2019.09.27 | 2019.10.23 | 10,206 | USD 8,500 | 1,200.75 | |||||||||||||||
BNP Paribas | 2019.09.27 | 2019.10.23 | 10,206 | USD 8,500 | 1,200.75 | |||||||||||||||
BNP Paribas | 2019.09.02 | 2019.10.04 | 880 | USD 727 | 1,209.45 | |||||||||||||||
MUFG | 2019.09.02 | 2019.10.04 | 4,236 | USD 3,502 | 1,209.40 | |||||||||||||||
Societe Generale | 2019.09.02 | 2019.10.04 | 6,050 | USD 5,000 | 1,210.00 | |||||||||||||||
BNP Paribas | 2019.09.11 | 2019.10.17 | 5,939 | USD 5,000 | 1,187.80 | |||||||||||||||
Shinhan Bank | 2019.09.11 | 2019.10.17 | 8,306 | USD 7,000 | 1,186.50 | |||||||||||||||
Nova Scotia | 2019.09.11 | 2019.10.17 | 4,023 | USD 3,398 | 1,183.90 | |||||||||||||||
Morgan Stanley | 2019.09.20 | 2019.10.24 | 3,267 | USD 2,745 | 1,190.15 | |||||||||||||||
Nonghyup Bank | 2019.09.20 | 2019.10.24 | 11,883 | USD 10,000 | 1,188.30 | |||||||||||||||
BNP Paribas | 2019.09.20 | 2019.10.24 | 5,937 | USD 5,000 | 1,187.30 | |||||||||||||||
Standard Chartered | 2019.09.20 | 2019.10.24 | 5,934 | USD 5,000 | 1,186.70 | |||||||||||||||
HSBC | 2019.09.23 | 2019.10.10 | 5,959 | USD 5,000 | 1,191.85 | |||||||||||||||
MUFG | 2019.09.23 | 2019.10.10 | 5,960 | USD 5,000 | 1,192.05 | |||||||||||||||
Nonghyup Bank | 2019.09.30 | 2019.10.22 | 11,972 | USD 10,000 | 1,197.20 |
34
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of September 30, 2019 are as follows, continued: |
In millions of won and thousands of foreign currencies except contract exchange rate information |
| |||||||||||||||||||
Counterparty | Contract date | Maturity date | Contract amounts | Contract exchange rate (in won) | ||||||||||||||||
Pay | Receive | |||||||||||||||||||
Hana Bank | 2019.09.03 | 2019.10.07 | USD 11,000 | |||||||||||||||||
Busan Bank | 2019.09.09 | 2019.10.07 | 3,569 | USD 3,000 | 1,189.65 | |||||||||||||||
Kookmin Bank | 2019.09.10 | 2019.10.07 | 5,954 | USD 5,000 | 1,190.88 | |||||||||||||||
Nova Scotia | 2019.09.17 | 2019.10.23 | 4,754 | USD 4,000 | 1,188.53 | |||||||||||||||
Kookmin Bank | 2019.09.20 | 2019.10.23 | 13,073 | USD 11,000 | 1,188.45 | |||||||||||||||
Nova Scotia | 2019.09.25 | 2019.10.23 | 11,973 | USD 10,000 | 1,197.25 | |||||||||||||||
Hana Bank | 2019.09.26 | 2019.10.23 | 9,585 | USD 8,000 | 1,198.08 | |||||||||||||||
Societe Generale | 2019.09.05 | 2019.10.07 | 4,801 | USD 4,000 | 1,200.20 | |||||||||||||||
Nova Scotia | 2019.09.06 | 2019.10.10 | 2,092 | USD 1,750 | 1,195.40 | |||||||||||||||
Shinhan Bank | 2019.09.09 | 2019.10.11 | 5,355 | USD 4,500 | 1,190.10 | |||||||||||||||
Woori Bank | 2019.09.10 | 2019.10.14 | 4,768 | USD 4,000 | 1,192.04 | |||||||||||||||
Nova Scotia | 2019.09.10 | 2019.10.14 | 5,365 | USD 4,500 | 1,192.30 | |||||||||||||||
Nova Scotia | 2019.09.11 | 2019.10.17 | 5,948 | USD 5,000 | 1,189.60 | |||||||||||||||
Credit Agricole | 2019.09.18 | 2019.10.21 | 3,562 | USD 3,000 | 1,187.30 | |||||||||||||||
Credit Agricole | 2019.09.18 | 2019.10.21 | 1,786 | USD 1,500 | 1,190.95 | |||||||||||||||
Woori Bank | 2019.09.19 | 2019.10.23 | 2,208 | USD 1,850 | 1,193.65 | |||||||||||||||
Standard Chartered | 2019.09.25 | 2019.10.28 | 4,789 | USD 4,000 | 1,197.30 | |||||||||||||||
Shinhan Bank | 2019.09.25 | 2019.10.28 | 5,511 | USD 4,600 | 1,197.95 | |||||||||||||||
Societe Generale | 2019.09.26 | 2019.10.31 | 4,192 | USD 3,500 | 1,197.80 | |||||||||||||||
Standard Chartered | 2019.09.27 | 2019.11.01 | 6,005 | USD 5,000 | 1,201.05 | |||||||||||||||
Nova Scotia | 2019.09.27 | 2019.11.01 | 7,201 | USD 6,000 | 1,200.10 | |||||||||||||||
Hana Bank | 2019.07.31 | 2020.07.14 | 4,993 | USD 4,257 | 1,173.00 |
35
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(3) | Currency swap contracts which are not designated as hedging instruments as of September 30, 2019 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information |
| |||||||||||||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate | Contract exchange rate (in won) | ||||||||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||||||||
Standard Chartered | 2014~2029 | USD 100,000 | 3.14 | % | 3.57 | % | ||||||||||||||||||
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 | ||||||||||||||||
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 | ||||||||||||||||
HSBC | 2014~2019 | 105,260 | USD 100,000 | 2.48 | % | 2.38 | % | 1,052.60 | ||||||||||||||||
Standard Chartered | 2014~2019 | 105,260 | USD 100,000 | 2.48 | % | 2.38 | % | 1,052.60 | ||||||||||||||||
Korea Development Bank | 2016~2019 | 105,260 | USD 100,000 | 2.48 | % | 2.38 | % | 1,052.60 | ||||||||||||||||
Nomura | 2015~2025 | 111,190 | USD 100,000 | 2.60 | % | 3.25 | % | 1,111.90 | ||||||||||||||||
Korea Development Bank | 2015~2025 | 111,190 | USD 100,000 | 2.62 | % | 3.25 | % | 1,111.90 | ||||||||||||||||
Woori Bank | 2015~2025 | 55,595 | USD 50,000 | 2.62 | % | 3.25 | % | 1,111.90 | ||||||||||||||||
Hana Bank | 2015~2025 | 55,595 | USD 50,000 | 2.62 | % | 3.25 | % | 1,111.90 | ||||||||||||||||
Woori Bank | 2017~2027 | 111,610 | USD 100,000 | 2.25 | % | 3.13 | % | 1,116.10 | ||||||||||||||||
Korea Development Bank | 2017~2027 | 111,610 | USD 100,000 | 2.31 | % | 3.13 | % | 1,116.10 | ||||||||||||||||
Hana Bank | 2017~2027 | 111,610 | USD 100,000 | 2.31 | % | 3.13 | % | 1,116.10 | ||||||||||||||||
Korea Development Bank | 2018~2028 | 108,600 | HKD 800,000 | 2.69 | % | 3.35 | % | 135.75 | ||||||||||||||||
Shinhan Bank | 2018~2028 | 115,387 | HKD 850,000 | 2.66 | % | 3.35 | % | 135.75 | ||||||||||||||||
Korea 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 |
36
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(4) | Currency swap contracts which are designated as hedging instruments as of September 30, 2019 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information |
| |||||||||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate | Contract exchange rate (in won, USD) | ||||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||||
HSBC | 2014~2020 | AUD 100,000 | 3.52% | 5.75% | ||||||||||||||||
HSBC | 2014~2020 | 100,482 | AUD 100,000 | 3.48% | 5.75% | 1,004.82 | ||||||||||||||
Standard Chartered | 2013~2020 | USD 117,250 | AUD 125,000 | 3M Libor + 1.25% | 5.75% | USD 0.94 | ||||||||||||||
Standard Chartered | 2014~2020 | 126,032 | USD 117,250 | 3.55% | 3M Libor + 1.25% | 1,074.90 | ||||||||||||||
Korea Development Bank | 2017~2020 | 114,580 | USD 100,000 | 1.75% | 2.38% | 1,145.80 | ||||||||||||||
Hana Bank | 2017~2020 | 114,580 | USD 100,000 | 1.75% | 2.38% | 1,145.80 | ||||||||||||||
Export-import bank of Korea | 2017~2020 | 114,580 | USD 100,000 | 1.75% | 2.38% | 1,145.80 | ||||||||||||||
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 | ||||||||||||||
Hana Bank | 2018~2021 | 212,960 | USD 200,000 | 2.10% | 3.00% | 1,064.80 | ||||||||||||||
Korea Development Bank | 2018~2021 | 212,960 | USD 200,000 | 2.10% | 3.00% | 1,064.80 | ||||||||||||||
Credit Agricole | 2014~2020 | 110,680 | USD 100,000 | 2.29% | 2.50% | 1,106.80 | ||||||||||||||
Societe Generale | 2014~2020 | 55,340 | USD 50,000 | 2.16% | 2.50% | 1,106.80 | ||||||||||||||
Hana Bank | 2014~2020 | 55,340 | USD 50,000 | 2.16% | 2.50% | 1,106.80 | ||||||||||||||
Hana Bank | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
Standard Chartered | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
HSBC | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
Nomura | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
BNP Paribas | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
HSBC | 2014~2020 | 55,340 | USD 50,000 | 2.21% | 2.50% | 1,106.80 | ||||||||||||||
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 |
37
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(5) | Interest rate swap contracts which are not designated as hedging instruments as of September 30, 2019 are as follows: |
In millions of won and thousands of USD | ||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate per annum | |||||||||
Pay | Receive | |||||||||||
Hana Bank | 2017~2022 | 2.01% | 3M CD + 0.24% | |||||||||
Hana Bank | 2017~2022 | 100,000 | 2.06% | 3M CD + 0.27% | ||||||||
Nomura (*1) | 2017~2037 | 30,000 | 2.05% | 3.08% | ||||||||
Hana Bank | 2017~2021 | 200,000 | 2.45% | 3M CD + 0.32% | ||||||||
Nomura (*2) | 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 | 2017~2027 | 52,457 | 3M Libor + 2.25% | 2.60% | ||||||||
Nomura | 2017~2027 | 59,423 | 3M Libor + 2.27% | 2.62% | ||||||||
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 |
(*1) | 2.05% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. |
(*2) | 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. |
(6) | Interest rate swap contracts which are designated as hedging instruments as of September 30, 2019 are as follows: |
In millions of won and thousands of USD | ||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate per annum | |||||||||
Pay | Receive | |||||||||||
BNP Paribas | 2009~2027 | USD 92,120 | 4.16% | 6M USD Libor | ||||||||
KFW | 2009~2027 | USD 92,120 | 4.16% | 6M USD Libor | ||||||||
Credit Agricole | 2018~2033 | USD 90,875 | 3.98% ~ 4.10% | 6M USD Libor | ||||||||
SMBC | 2018~2033 | USD 118,837 | 4.05% ~ 4.18% | 6M USD Libor | ||||||||
Export-import bank of Korea | 2016~2036 | USD 82,498 | 3.00% | 4.99% |
38
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
12. | Derivatives, Continued |
(7) | Gains and losses on valuation and transaction of derivatives for the three and nine-month periods ended September 30, 2019 and 2018 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) (*) | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||||||||||||||||||||||||
Currency forward | 50,381 | (87,759 | ) | 2,220 | 5,024 | 15,266 | 5,280 | 22,359 | — | — | 1,141 | 2,747 | ||||||||||||||||||||||||||||||||||||
Currency swap | 279,069 | 588,832 | (32,770 | ) | 151,568 | 44,208 | 83,119 | 13,475 | 19,425 | (9,091 | ) | 34,436 | 12,628 | (55,746 | ) | |||||||||||||||||||||||||||||||||
Interest rate swap | (10,257 | ) | (31,370 | ) | 4,119 | 7,043 | (1,007 | ) | (1,398 | ) | (347 | ) | 106 | 1,464 | (7,900 | ) | (257 | ) | 555 | |||||||||||||||||||||||||||||
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607,843 | (116,410 | ) | 160,831 | 48,225 | 96,987 | 18,408 | 41,890 | (7,627 | ) | 26,536 | 13,512 | (52,444 | ) | |||||||||||||||||||||||||||||||||||
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(*) | For the nine-month period ended September 30, 2019, the net gain on valuation of derivatives applying cash flow hedge accounting of |
39
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
13. | Other Financial Assets |
(1) | Other financial assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Loans and receivables | 689,148 | 123,657 | 639,673 | |||||||||||||
Allowance for doubtful accounts | (53 | ) | (4,935 | ) | (12 | ) | (4,940 | ) | ||||||||
Present value discount | (1,014 | ) | (36,695 | ) | (992 | ) | (38,712 | ) | ||||||||
Long-term/short-term financial instruments | 2,104,338 | 566,366 | 1,869,286 | 448,741 | ||||||||||||
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1,213,884 | 1,991,939 | 1,044,762 | ||||||||||||||
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(2) | Loans and receivables as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Face value | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Short-term loans and receivables | ||||||||||||||||
Loans for tuition | — | (1,014 | ) | 34,031 | ||||||||||||
Loans for housing | 17,155 | — | — | 17,155 | ||||||||||||
Other loans | 47,160 | (53 | ) | — | 47,107 | |||||||||||
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99,360 | (53 | ) | (1,014 | ) | 98,293 | |||||||||||
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Long-term loans and receivables | ||||||||||||||||
Loans for tuition | 428,044 | — | (36,677 | ) | 391,367 | |||||||||||
Loans for housing | 190,252 | — | — | 190,252 | ||||||||||||
Loans for related parties | 66,393 | (4,930 | ) | — | 61,463 | |||||||||||
Other loans | 4,459 | (5 | ) | (18 | ) | 4,436 | ||||||||||
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689,148 | (4,935 | ) | (36,695 | ) | 647,518 | |||||||||||
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(4,988 | ) | (37,709 | ) | 745,811 | ||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||
Face value | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Short-term loans and receivables | ||||||||||||||||
Loans for tuition | — | (992 | ) | 32,341 | ||||||||||||
Loans for housing | 15,572 | — | — | 15,572 | ||||||||||||
Fisheries loan | 320 | — | — | 320 | ||||||||||||
Other loans | 74,432 | (12 | ) | — | 74,420 | |||||||||||
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123,657 | (12 | ) | (992 | ) | 122,653 | |||||||||||
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Long-term loans and receivables | ||||||||||||||||
Loans for tuition | 414,893 | — | (38,659 | ) | 376,234 | |||||||||||
Loans for housing | 167,723 | — | — | 167,723 | ||||||||||||
Loans for related parties | 46,798 | (4,930 | ) | — | 41,868 | |||||||||||
Fisheries loan | 640 | — | (53 | ) | 587 | |||||||||||
Other loans | 9,619 | (10 | ) | — | 9,609 | |||||||||||
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639,673 | (4,940 | ) | (38,712 | ) | 596,021 | |||||||||||
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(4,952 | ) | (39,704 | ) | 718,674 | ||||||||||||
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40
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
13. | Other Financial Assets, Continued |
(3) | Changes in the allowance for doubtful accounts of loans and receivables for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 8,948 | |||||||
Bad debt expense | 36 | 22 | ||||||
Others | — | (4,018 | ) | |||||
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Ending balance | 4,952 | |||||||
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(4) | Long-term and short-term financial instruments as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Time deposits | 245,954 | 1,602,285 | 63,358 | |||||||||||||
ABCP | 360,563 | — | — | — | ||||||||||||
CP | 24,752 | — | — | — | ||||||||||||
CD | 30,000 | — | 10,000 | — | ||||||||||||
RP | 10,000 | — | — | — | ||||||||||||
Others | 243,000 | 320,412 | 257,001 | 385,383 | ||||||||||||
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566,366 | 1,869,286 | 448,741 | ||||||||||||||
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41
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
14. | Inventories |
Inventories as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||
Acquisition cost | Valuation allowance | Book value | ||||||||||
Raw materials | (1,430 | ) | 3,401,122 | |||||||||
Merchandises | 349 | — | 349 | |||||||||
Work-in-progress | 177,147 | — | 177,147 | |||||||||
Finished goods | 38,317 | — | 38,317 | |||||||||
Supplies | 2,118,100 | (4,437 | ) | 2,113,663 | ||||||||
Inventories-in-transit | 917,648 | — | 917,648 | |||||||||
Other inventories | 14,631 | — | 14,631 | |||||||||
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(5,867 | ) | 6,662,877 | ||||||||||
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In millions of won | December 31, 2018 | |||||||||||
Acquisition cost | Valuation allowance | Book value | ||||||||||
Raw materials | (2,609 | ) | 3,884,130 | |||||||||
Work-in-progress | 189,907 | (1,028 | ) | 188,879 | ||||||||
Finished goods | 50,526 | — | 50,526 | |||||||||
Supplies | 1,858,751 | (3,907 | ) | 1,854,844 | ||||||||
Inventories-in-transit | 1,196,113 | — | 1,196,113 | |||||||||
Other inventories | 13,761 | — | 13,761 | |||||||||
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(7,544 | ) | 7,188,253 | ||||||||||
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|
The reversal of the allowance for loss on inventory valuation due to increase in the net realizable value of inventory deducted from cost of sales for the nine-month period ended September 30, 2019and for the year ended December 31, 2018 wereW4,442 million andW3,723 million, respectively.
The amounts of loss from inventory valuation included in other gains or losses for the nine-month period ended September 30, 2019and for the year ended December 31, 2018 wereW2,765 million andW1,953 million, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
15. | Finance Lease Receivables |
(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 with Fujeij Wind Power Company to provide an 89.1MW level wind power plant over a 20 year lease term. The Group accounts for the PPA as a finance lease. Also, the Group hasfly-ash pipe conduit finance leases with an average lease term of 7 years. In addition, the Group provides 30 energy storage system installation projects and 78 energy efficiency contracts as finance leases with a lease term of 1 to 8 years. Also, the Group entered into a PPA with the Comision Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) of 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) | Finance lease receivables as of September 30, 2019 and December 31, 2018 are as follows and included in current andnon-current trade and other receivables, net, in the consolidated statements of financial position: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Minimum lease payment | Present value of minimum lease payment | Minimum lease payment | Present value of minimum lease payment | |||||||||||||
Less than 1 year | 103,982 | 124,918 | 84,688 | |||||||||||||
1 ~ 5 years | 619,186 | 236,355 | 467,518 | 223,622 | ||||||||||||
More than 5 years | 1,838,071 | 881,345 | 1,333,016 | 675,036 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
1,221,682 | 1,925,452 | 983,346 | ||||||||||||||
|
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|
|
|
|
|
| |||||||||
Less : Allowance for doubtful accounts | (917 | ) | (1,133 | ) | ||||||||||||
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| |||||||||||||
982,213 | ||||||||||||||||
|
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|
|
(3) | Changes in the allowance for doubtful accounts of finance lease receivables for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | — | |||||||
Bad debt expense | — | 1,133 | ||||||
Reversal of allowance for doubtful accounts | (216 | ) | — | |||||
|
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| |||||
Ending balance | 1,133 | |||||||
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
16. | Non-Financial Assets |
Non-financial assets as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance payment | 6,688 | 156,073 | 160,628 | |||||||||||||
Prepaid expenses (*1) | 410,003 | 77,196 | 290,944 | 90,449 | ||||||||||||
Others (*2) | 432,812 | 81,515 | 431,871 | 76,075 | ||||||||||||
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| |||||||||
165,399 | 878,888 | 327,152 | ||||||||||||||
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|
|
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|
|
(*1) | Prepaid expenses amounting to |
(*2) | Details of others as of September 30, 2019and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Greenhouse gas emissions rights | — | 93,749 | — | |||||||||||||
Other quick assets and others (*3) | 236,097 | 81,515 | 338,122 | 76,075 | ||||||||||||
|
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| |||||||||
81,515 | 431,871 | 76,075 | ||||||||||||||
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|
(*3) | The Group recognized an impairment loss of |
44
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries |
(1) | Consolidated subsidiaries as of September 30, 2019 and December 31, 2018 are as follows: |
��
Percentage of ownership | ||||||||||||
Subsidiaries | Key operation activities | Location | September 30, 2019 | December 31, 2018 | ||||||||
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) | Architectural engineering 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 | % | ||||||
Garolim Tidal Power Plant Co., Ltd. (*6) | Power generation | KOREA | — | 49.00 | % | |||||||
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 | 79.64 | % | 79.64 | % | ||||||
Korea Electric Power Nigeria Ltd. | Operation of utility plant | NIGERIA | 100.00 | % | 100.00 | % | ||||||
KEPCO Holdings de Mexico | Holding company | MEXICO | 100.00 | % | 100.00 | % | ||||||
KST Electric Power Company | 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 | % |
45
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of September 30, 2019 and December 31, 2018 are as follows, continued: |
Percentage of ownership | ||||||||||||
Subsidiaries | Key operation activities | Location | September 30, 2019 | December 31, 2018 | ||||||||
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 Philippines Corporation | Holding company | PHILIPPINES | 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 | % | 100.00 | % | ||||||
DG Whitefield, LLC | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
Springfield Power, LLC | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
KNF Canada Energy Limited | Holding company | CANADA | 96.36 | % | 96.36 | % | ||||||
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 | % | ||||||
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) | Power generation | KOREA | 85.00 | % | 59.03 | % | ||||||
KEPCO Singapore Holdings Pte., Ltd. | Holding company | SINGAPORE | — | 100.00 | % | |||||||
KEPCO KPS Philippines Corp. | Utility plant maintenance and others | PHILIPPINES | 51.00 | % | 51.00 | % | ||||||
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 | % | ||||||
HeeMang 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 | % | ||||||
HI Carbon Professional Private Special Asset Investment Trust 1 | Holding company | KOREA | 96.67 | % | 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 | % | ||||||
Solar School Plant Co., Ltd. | Power generation | KOREA | 100.00 | % | 100.00 | % | ||||||
KOSPO Power Services Limitada | 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 | % |
46
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of September 30, 2019 and December 31, 2018 are as follows, continued: |
Percentage of ownership | ||||||||||||
Subsidiaries | Key operation activities | Location | September 30, 2019 | December 31, 2018 | ||||||||
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 (formerly, Cogentrix of Alamosa, LLC) | Power generation | USA | 50.10 | % | 50.10 | % | ||||||
KEPCO-LG CNS Mangilao Holdings LLC | Holding company | USA | 70.00 | % | 70.00 | % | ||||||
Mangilao Investment LLC | Holding company | USA | 70.00 | % | 70.00 | % | ||||||
KEPCO-LG CNS Mangilao Solar, LLC | Power generation | USA | 70.00 | % | 70.00 | % | ||||||
Jeju Hanlim Offshore Wind Co., Ltd. | Power generation | KOREA | 68.84 | % | 68.84 | % | ||||||
PT. Siborpa Eco Power | Construction and operation of utility plant | INDONESIA | 55.00 | % | 55.00 | % | ||||||
BSKE-New Industry Fund VII | Holding company | KOREA | 80.86 | % | 80.86 | % | ||||||
e-New Industry LB Fund 1 | Holding company | KOREA | 75.36 | % | 75.36 | % | ||||||
Songhyune-New Industry Fund | Holding company | KOREA | 79.85 | % | 79.85 | % | ||||||
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 | % | — | |||||||
KOSPO USA Inc. | Holding company | USA | 100.00 | % | — | |||||||
Nambu USA LLC | Holding company | USA | 100.00 | % | — | |||||||
Tamra Offshore Wind Power Co., Ltd. (*5) | Power generation | KOREA | 63.00 | % | 27.00 | % | ||||||
KEPCO MCS Co., Ltd. | Electric meter reading and others | KOREA | 100.00 | % | — | |||||||
KEPCO FMS Co., Ltd. | Security service and others | KOREA | 100.00 | % | — | |||||||
Firstkeepers Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | — | |||||||
Secutec Co., Ltd. | Security service | KOREA | 100.00 | % | — | |||||||
SE Green Energy Co., Ltd. (*5) | Power generation | KOREA | 84.80 | % | 47.76 | % |
(*1) | Considering treasury stocks, the effective percentage of ownership is 66.08%. |
47
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of September 30, 2019 and December 31, 2018 are as follows, continued: |
(*2) | The effective percentage of ownership is less than 50%. However, these subsidiaries are included in the consolidated financial statements as the Group obtained the majority of the voting power through the shareholders’ agreement. |
(*3) | As of 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) | Re-classified from an associate to a subsidiary due to additional acquisition of interest. |
(*6) | As of September 30, 2019, Garolim Tidal Power Plant Co., Ltd. selected a liquidator to proceed liquidation, and classified as current assets held for sale. |
(2) | Subsidiaries newly included in and excluded from consolidation for the nine-month period ended September 30, 2019 are as follows: |
<Subsidiaries newly included in consolidation during the nine-month period ended September 30, 2019>
Subsidiaries | Reason | |
KNF Partners Co., Ltd. | Newly established | |
KOSPO USA Inc. | Newly established | |
Nambu USA LLC | Newly established | |
Tamra Offshore Wind Power Co., Ltd. | Additional acquisition | |
KEPCO MCS Co., Ltd. | Newly established | |
KEPCO FMS Co., Ltd. | Newly established | |
Firstkeepers Co., Ltd. | Newly established | |
Secutec Co., Ltd. | Newly established | |
SE Green Energy Co., Ltd. | Additional acquisition |
<Subsidiaries excluded from consolidation during the nine-month period ended September 30, 2019>
Subsidiaries | Reason | |
KEPCO Singapore Holdings Pte., Ltd. | Liquidation | |
Garolim Tidal Power Plant Co., Ltd. | Under Liquidation Process |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Korea Hydro & Nuclear Power Co., Ltd. | 31,937,661 | 6,628,823 | 394,059 | |||||||||||||
Korea South-East Power Co., Ltd. | 10,859,056 | 5,682,730 | 4,158,723 | 155,305 | ||||||||||||
Korea Midland Power Co., Ltd. | 12,326,734 | 8,632,529 | 3,211,951 | (34,094 | ) | |||||||||||
Korea Western Power Co., Ltd. | 10,699,984 | 6,803,070 | 3,259,822 | (18,953 | ) | |||||||||||
Korea Southern Power Co., Ltd. | 10,540,950 | 6,182,878 | 4,000,254 | 47,221 | ||||||||||||
Korea East-West Power Co., Ltd. | 9,278,120 | 4,572,317 | 3,759,055 | 60,667 | ||||||||||||
KEPCO Engineering & Construction Company, Inc. | 708,854 | 249,637 | 266,516 | 12,598 | ||||||||||||
KEPCO Plant Service & Engineering Co., Ltd. | 1,321,071 | 339,208 | 866,546 | 103,838 | ||||||||||||
KEPCO Nuclear Fuel Co., Ltd. | 787,712 | 375,907 | 236,765 | 37,936 | ||||||||||||
KEPCO KDN Co., Ltd. | 558,669 | 162,869 | 386,265 | 17,960 | ||||||||||||
Garolim Tidal Power Plant Co., Ltd. | 601 | — | — | 339 | ||||||||||||
KEPCO International HongKong Ltd. | 143,281 | 1 | — | 3,102 | ||||||||||||
KEPCO International Philippines Inc. | 110,214 | 8 | — | 51,715 |
48
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KEPCO Gansu International Ltd. | 566 | — | (4 | ) | ||||||||||||
KEPCO Philippines Holdings Inc. | 169,105 | 10,452 | — | 28,824 | ||||||||||||
KEPCO Philippines Corporation | 5,646 | 66 | — | (913 | ) | |||||||||||
KEPCO Ilijan Corporation | 404,682 | 55,972 | 71,283 | 31,361 | ||||||||||||
KEPCO Lebanon SARL | 1,930 | 10,151 | — | 282 | ||||||||||||
KEPCO Neimenggu International Ltd. | 208,497 | — | — | (263 | ) | |||||||||||
KEPCO Shanxi International Ltd. | 560,443 | 215,619 | — | 2,790 | ||||||||||||
KOMIPO Global Pte Ltd. | 277,798 | 440 | — | 9,490 | ||||||||||||
KEPCO Netherlands B.V. | 127,392 | 92 | — | 1,057 | ||||||||||||
KOREA Imouraren Uranium Investment Corp. | 63,469 | 142 | — | (43 | ) | |||||||||||
KEPCO Australia Pty., Ltd. | 344 | 14 | — | (425,644 | ) | |||||||||||
KOSEP Australia Pty., Ltd. | 31,179 | 2,426 | 11,668 | 1,578 | ||||||||||||
KOMIPO Australia Pty., Ltd. | 40,089 | 2,641 | 11,668 | 3,134 | ||||||||||||
KOWEPO Australia Pty., Ltd. | 40,693 | 2,726 | 11,668 | 2,226 | ||||||||||||
KOSPO Australia Pty., Ltd. | 34,687 | 2,738 | 11,668 | 2,267 | ||||||||||||
KEPCO Middle East Holding Company | 98,050 | 89,528 | — | (226 | ) | |||||||||||
Qatrana Electric Power Company | 516,112 | 334,266 | 15,593 | 15,841 | ||||||||||||
KHNP Canada Energy, Ltd. | 52,035 | 52 | — | (5 | ) | |||||||||||
KEPCO Bylong Australia Pty., Ltd. | 44,764 | 361,338 | — | (35,383 | ) | |||||||||||
Korea Waterbury Uranium Limited Partnership | 20,906 | 180 | — | (55 | ) | |||||||||||
Korea Electric Power Nigeria Ltd. | 100 | 26 | 361 | 8 | ||||||||||||
KEPCO Holdings de Mexico | 187 | 25 | — | (14 | ) | |||||||||||
KST Electric Power Company | 557,426 | 450,893 | 38,631 | 4,768 | ||||||||||||
KEPCO Energy Service Company | 2,075 | 1,341 | 4,433 | 210 | ||||||||||||
KEPCO Netherlands S3 B.V. | 50,616 | 47 | — | 1,058 | ||||||||||||
PT. KOMIPO Pembangkitan Jawa Bali | 14,419 | 5,030 | 14,173 | 6,787 | ||||||||||||
PT. Cirebon Power Service | 2,205 | 483 | 5,822 | 288 | ||||||||||||
KOWEPO International Corporation | — | 10 | — | (2 | ) | |||||||||||
KOSPO Jordan LLC | 17,798 | 1,465 | 7,822 | 2,398 | ||||||||||||
EWP Philippines Corporation | 1,721 | 901 | — | (106 | ) | |||||||||||
EWP America Inc. (*1) | 72,276 | 4,087 | 17,804 | (4,754 | ) | |||||||||||
KNF Canada Energy Limited | 2,011 | 32 | — | (34 | ) | |||||||||||
EWP Barbados 1 SRL | 291,682 | 697 | 2,179 | 4,553 | ||||||||||||
Gyeonggi Green Energy Co., Ltd. | 255,981 | 163,026 | 11,164 | (15,802 | ) | |||||||||||
PT. Tanggamus Electric Power | 237,756 | 200,494 | 1,649 | (1,367 | ) | |||||||||||
Gyeongju Wind Power Co., Ltd. | 111,210 | 74,624 | 10,589 | 1,630 | ||||||||||||
KOMIPO America Inc. | 10,166 | 615 | 207 | (655 | ) | |||||||||||
KOSEP USA, Inc. | 1 | 5,341 | — | (118 | ) | |||||||||||
PT. EWP Indonesia | 31,635 | — | — | 2,966 | ||||||||||||
KEPCO Netherlands J3 B.V. | 124,557 | 151 | — | (110 | ) | |||||||||||
Korea Offshore Wind Power Co., Ltd. | 249,310 | 78,685 | — | (9,112 | ) | |||||||||||
Global One Pioneer B.V. | 227 | 94 | — | (65 | ) | |||||||||||
Global Energy Pioneer B.V. | 402 | 86 | — | (54 | ) | |||||||||||
Mira Power Limited | 344,662 | 273,116 | — | (699 | ) | |||||||||||
KOSEP Material Co., Ltd. | 2,738 | 1,027 | 2,501 | 99 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Commerce and Industry Energy Co., Ltd. | 43,719 | 25,565 | (7,623 | ) | ||||||||||||
KEPCO KPS Philippines Corp. | 8,454 | 4,517 | 4,432 | 23 | ||||||||||||
KOSPO Chile SpA | 158,313 | 68,564 | — | 403 | ||||||||||||
PT. KOWEPO Sumsel Operation And Maintenance Services | 878 | 213 | — | (330 | ) | |||||||||||
HeeMang Sunlight Power Co., Ltd. | 12,219 | 8,529 | 473 | 126 | ||||||||||||
Fujeij Wind Power Company | 226,246 | 209,874 | — | 367 | ||||||||||||
KOSPO Youngnam Power Co., Ltd. | 396,378 | 305,230 | 234,734 | 3,265 | ||||||||||||
HI Carbon Professional Private Special Asset Investment Trust 1 | 2,999 | — | — | 9 | ||||||||||||
Chitose Solar Power Plant LLC | 123,575 | 109,635 | 13,709 | 2,353 | ||||||||||||
KEPCO Energy Solution Co., Ltd. | 307,747 | 2,234 | 2,305 | 2,258 | ||||||||||||
Solar School Plant Co., Ltd. | 205,818 | 1,154 | 1,414 | 1,749 | ||||||||||||
KOSPO Power Services Limitada | 3,435 | 1,080 | 7,511 | 1,004 | ||||||||||||
Energy New Industry Specialized Investment Private Investment Trust (*2) | 92,266 | 487 | — | (4,326 | ) | |||||||||||
KOEN Bylong Pty., Ltd. | 2 | 27 | — | — | ||||||||||||
KOMIPO Bylong Pty., Ltd. | 2 | 27 | — | — | ||||||||||||
KOWEPO Bylong Pty., Ltd. | 2 | 27 | — | — | ||||||||||||
KOSPO Bylong Pty., Ltd. | 2 | 27 | — | — | ||||||||||||
EWP Bylong Pty., Ltd. | 2 | 27 | — | — | ||||||||||||
KOWEPO Lao International | 5,135 | 549 | 3,218 | 1,112 | ||||||||||||
KEPCO US Inc. | 17,878 | — | — | — | ||||||||||||
KEPCO Alamosa LLC | 34,664 | 32 | 92 | (264 | ) | |||||||||||
KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC) | 68,712 | 51,496 | 6,787 | (419 | ) | |||||||||||
KEPCO-LG CNS Mangilao Holdings LLC | 27,939 | 30,569 | — | (921 | ) | |||||||||||
Mangilao Investment LLC | 27,937 | — | — | — | ||||||||||||
KEPCO-LG CNS Mangilao Solar, LLC | 27,463 | 3 | — | (373 | ) | |||||||||||
Jeju Hanlim Offshore Wind Co., Ltd. | 14,439 | 277 | — | (2,067 | ) | |||||||||||
PT. Siborpa Eco Power | 12,241 | 58 | — | (921 | ) | |||||||||||
PT. Korea Energy Indonesia | 1,601 | 68 | 1,838 | 283 | ||||||||||||
KOLAT SpA | 40,678 | 526 | — | (551 | ) | |||||||||||
KEPCO California, LLC | 45,907 | 975 | 357 | (343 | ) | |||||||||||
KEPCO Mojave Holdings, LLC | 107,716 | 71,055 | — | (3,135 | ) | |||||||||||
Incheon Fuel Cell Co., Ltd. | 22,639 | 107 | — | (678 | ) | |||||||||||
KOEN Service Co., Ltd. | 5,116 | 4,013 | 17,871 | 550 | ||||||||||||
KOMIPO Service Co., Ltd. | 3,864 | 3,108 | 17,673 | 197 | ||||||||||||
KOWEPO Service Co., Ltd. | 4,341 | 1,432 | 17,405 | 2,372 | ||||||||||||
KOSPO Service Co., Ltd. | 5,329 | 1,634 | 14,484 | 3,125 | ||||||||||||
EWP Service Co., Ltd. | 3,011 | 724 | 12,992 | 1,727 | ||||||||||||
PT. KOMIPO Energy Indonesia | 1,615 | 11 | — | (789 | ) | |||||||||||
KNF partners Co., Ltd. | 906 | 446 | 1,896 | 161 | ||||||||||||
KOSPO USA Inc. | 2,757 | 78 | — | (836 | ) | |||||||||||
Nambu USA LLC | 102 | 1 | — | 98 | ||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 158,985 | 124,003 | 14,320 | 1,153 | ||||||||||||
KEPCO MCS Co., Ltd. | 31,776 | 20,625 | 83,679 | 10,201 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KEPCO FMS Co., Ltd. | 6,603 | 11,707 | (3,150 | ) | ||||||||||||
Firstkeepers Co., Ltd. | 914 | 3 | — | (79 | ) | |||||||||||
Secutec Co., Ltd. | 596 | 3 | — | (97 | ) | |||||||||||
SE Green Energy Co., Ltd. | 135,673 | 108,301 | — | 1,080 |
(*1) | Financial information of EWP America Inc. includes that of six other subsidiaries, EWP Renewable Corporation, DG Fairhaven Power, LLC, DG Whitefield, LLC, Springfield 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 three other subsidiaries, BSKE-New Industry Fund VII,e-New Industry LB Fund 1 and Songhyune-New Industry Fund. |
In millions of won | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Korea Hydro & Nuclear Power Co., Ltd. | 30,484,104 | 8,858,717 | (137,613 | ) | ||||||||||||
Korea South-East Power Co., Ltd. | 9,997,758 | 4,948,553 | 5,521,038 | 25,736 | ||||||||||||
Korea Midland Power Co., Ltd. | 10,839,218 | 7,088,013 | 4,368,467 | (38,142 | ) | |||||||||||
Korea Western Power Co., Ltd. | 9,902,752 | 5,965,410 | 4,841,261 | (28,157 | ) | |||||||||||
Korea Southern Power Co., Ltd. | 9,810,985 | 5,463,721 | 5,539,793 | 55,439 | ||||||||||||
Korea East-West Power Co., Ltd. | 8,744,380 | 4,092,460 | 4,933,525 | 3,345 | ||||||||||||
KEPCO Engineering & Construction Company, Inc. | 771,480 | 310,100 | 433,701 | 12,937 | ||||||||||||
KEPCO Plant Service & Engineering Co., Ltd. | 1,275,365 | 296,428 | 1,239,604 | 160,791 | ||||||||||||
KEPCO Nuclear Fuel Co., Ltd. | 817,416 | 434,439 | 230,667 | 15,835 | ||||||||||||
KEPCO KDN Co., Ltd. | 566,807 | 159,423 | 622,154 | 60,016 | ||||||||||||
Garolim Tidal Power Plant Co., Ltd. | 608 | 345 | — | (11 | ) | |||||||||||
KEPCO International HongKong Ltd. | 140,101 | 1 | — | 3,307 | ||||||||||||
KEPCO International Philippines Inc. | 107,948 | 1,475 | — | 52,539 | ||||||||||||
KEPCO Gansu International Ltd. | 12,047 | 515 | — | (24 | ) | |||||||||||
KEPCO Philippines Holdings Inc. | 188,551 | 9,775 | — | 53,219 | ||||||||||||
KEPCO Philippines Corporation | 6,394 | 213 | — | 54 | ||||||||||||
KEPCO Ilijan Corporation | 431,444 | 53,413 | 99,844 | 49,631 | ||||||||||||
KEPCO Lebanon SARL | 1,509 | 9,686 | — | 413 | ||||||||||||
KEPCO Neimenggu International Ltd. | 194,336 | — | — | 20,829 | ||||||||||||
KEPCO Shanxi International Ltd. | 519,991 | 201,732 | — | 290 | ||||||||||||
KOMIPO Global Pte Ltd. | 250,456 | 961 | — | 11,478 | ||||||||||||
KEPCO Netherlands B.V. | 130,460 | 77 | — | 26,550 | ||||||||||||
KOREA Imouraren Uranium Investment Corp. | 63,517 | 171 | — | (89,852 | ) | |||||||||||
KEPCO Australia Pty., Ltd. | 439,719 | 14 | — | 49 | ||||||||||||
KOSEP Australia Pty., Ltd. | 37,057 | 2,832 | 20,294 | 7,315 | ||||||||||||
KOMIPO Australia Pty., Ltd. | 39,066 | 4,659 | 20,294 | 7,193 | ||||||||||||
KOWEPO Australia Pty., Ltd. | 39,341 | 4,702 | 20,294 | 7,316 | ||||||||||||
KOSPO Australia Pty., Ltd. | 36,525 | 3,585 | 20,294 | 9,520 | ||||||||||||
KEPCO Middle East Holding Company | 101,201 | 92,862 | — | 3,043 | ||||||||||||
Qatrana Electric Power Company | 484,383 | 326,486 | 18,766 | 21,170 | ||||||||||||
KHNP Canada Energy, Ltd. | 49,776 | 35 | — | (26 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KEPCO Bylong Australia Pty., Ltd. | 315,921 | — | (29,573 | ) | ||||||||||||
Korea Waterbury Uranium Limited Partnership | 20,890 | 142 | — | (74 | ) | |||||||||||
Korea Electric Power Nigeria Ltd. | 112 | 39 | 727 | (93 | ) | |||||||||||
KEPCO Holdings de Mexico | 248 | 57 | — | (11 | ) | |||||||||||
KST Electric Power Company | 535,807 | 457,867 | 109,735 | 10,274 | ||||||||||||
KEPCO Energy Service Company | 1,940 | 1,454 | 5,117 | (232 | ) | |||||||||||
KEPCO Netherlands S3 B.V. | 46,518 | 38 | — | 1,226 | ||||||||||||
PT. KOMIPO Pembangkitan Jawa Bali | 11,405 | 5,472 | 20,320 | 3,925 | ||||||||||||
PT. Cirebon Power Service | 1,588 | 273 | 7,228 | 177 | ||||||||||||
KOWEPO International Corporation | — | 8 | — | — | ||||||||||||
KOSPO Jordan LLC | 16,315 | 3,432 | 34,371 | 1,907 | ||||||||||||
EWP Philippines Corporation | 1,684 | 829 | — | (11 | ) | |||||||||||
EWP America Inc. (*1) | 72,525 | 4,903 | 29,557 | (4,483 | )�� | |||||||||||
KNF Canada Energy Limited | 1,801 | 20 | — | (45 | ) | |||||||||||
EWP Barbados 1 SRL | 268,033 | 1,581 | 688 | 11,221 | ||||||||||||
Gyeonggi Green Energy Co., Ltd. | 293,812 | 185,043 | 96,442 | 25,121 | ||||||||||||
PT. Tanggamus Electric Power | 216,321 | 187,502 | 26,832 | 9,338 | ||||||||||||
Gyeongju Wind Power Co., Ltd. | 122,303 | 83,348 | 21,906 | 8,803 | ||||||||||||
KOMIPO America Inc. | 10,092 | 572 | — | (885 | ) | |||||||||||
KOSEP USA, Inc. | 1 | 4,857 | — | 4,341 | ||||||||||||
PT. EWP Indonesia | 7,444 | 14 | — | 3,138 | ||||||||||||
KEPCO Netherlands J3 B.V. | 115,978 | 77 | — | (104 | ) | |||||||||||
Korea Offshore Wind Power Co., Ltd. | 216,114 | 36,377 | — | (8,473 | ) | |||||||||||
Global One Pioneer B.V. | 162 | 87 | — | (113 | ) | |||||||||||
Global Energy Pioneer B.V. | 325 | 74 | — | (102 | ) | |||||||||||
Mira Power Limited | 277,525 | 213,104 | — | (980 | ) | |||||||||||
KOSEP Material Co., Ltd. | 2,862 | 1,249 | 3,240 | 377 | ||||||||||||
Commerce and Industry Energy Co., Ltd. | 92,872 | 88,009 | 27,937 | (6,091 | ) | |||||||||||
KEPCO Singapore Holdings Pte., Ltd. | 582 | 9 | — | (31 | ) | |||||||||||
KEPCO KPS Philippines Corp. | 7,501 | 358 | 4,815 | 766 | ||||||||||||
KOSPO Chile SpA | 139,814 | 57,502 | — | 1,016 | ||||||||||||
PT. KOWEPO Sumsel Operation And Maintenance Services | 1,313 | 394 | 4,343 | (654 | ) | |||||||||||
HeeMang Sunlight Power Co., Ltd. | 10,915 | 7,626 | 146 | (192 | ) | |||||||||||
Fujeij Wind Power Company | 217,796 | 212,435 | — | (1,033 | ) | |||||||||||
KOSPO Youngnam Power Co., Ltd. | 413,472 | 325,589 | 369,669 | 8,155 | ||||||||||||
HI Carbon Professional Private Special Asset Investment Trust 1 | 3,002 | — | — | 12 | ||||||||||||
Chitose Solar Power Plant LLC | 115,505 | 105,079 | 15,022 | 872 | ||||||||||||
KEPCO Energy Solution Co., Ltd. | 304,103 | 849 | 5,584 | 2,532 | ||||||||||||
Solar School Plant Co., Ltd. | 204,282 | 1,366 | 1,149 | 2,033 | ||||||||||||
KOSPO Power Services Limitada | 3,045 | 596 | 9,610 | 1,132 | ||||||||||||
Energy New Industry Specialized Investment Private Investment Trust (*2) | 66,498 | 1,014 | — | (1,140 | ) | |||||||||||
KOEN Bylong Pty., Ltd. | 5,544 | 26 | — | (10 | ) | |||||||||||
KOMIPO Bylong Pty., Ltd. | 5,544 | 26 | — | (25 | ) | |||||||||||
KOWEPO Bylong Pty., Ltd. | 5,544 | 26 | — | — |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KOSPO Bylong Pty., Ltd. | 26 | — | (25 | ) | ||||||||||||
EWP Bylong Pty., Ltd. | 5,544 | 16 | — | (15 | ) | |||||||||||
KOWEPO Lao International | 3,800 | 1,015 | 2,899 | 895 | ||||||||||||
KEPCO US Inc. | 16,640 | — | — | 6 | ||||||||||||
KEPCO Alamosa LLC | 32,346 | 79 | 750 | (688 | ) | |||||||||||
KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC) | 64,223 | 48,819 | 9,015 | 200 | ||||||||||||
KEPCO-LG CNS Mangilao Holdings LLC | 25,642 | 27,197 | — | (1,144 | ) | |||||||||||
Mangilao Investment LLC | 25,641 | — | — | — | ||||||||||||
KEPCO-LG CNS Mangilao Solar, LLC | 25,406 | 146 | — | (104 | ) | |||||||||||
Jeju Hanlim Offshore Wind Co., Ltd. | 16,557 | 328 | — | (925 | ) | |||||||||||
PT. Siborpa Eco Power | 12,363 | 141 | — | (1,771 | ) | |||||||||||
PT. Korea Energy Indonesia | 1,183 | 60 | 1,459 | 223 | ||||||||||||
KOLAT SpA | 38,362 | 474 | 585 | (186 | ) | |||||||||||
KEPCO California, LLC | 42,171 | 21 | — | (332 | ) | |||||||||||
KEPCO Mojave Holdings, LLC | 103,189 | 65,730 | — | (3,959 | ) | |||||||||||
Incheon Fuel Cell Co., Ltd. | 23,626 | 415 | — | (201 | ) | |||||||||||
KOEN Service Co., Ltd. | 583 | 31 | — | (48 | ) | |||||||||||
KOMIPO Service Co., Ltd. | 576 | 17 | — | (41 | ) | |||||||||||
KOWEPO Service Co., Ltd. | 750 | 227 | — | (77 | ) | |||||||||||
KOSPO Service Co., Ltd. | 576 | 6 | — | (30 | ) | |||||||||||
EWP Service Co., Ltd. | 667 | 97 | — | (30 | ) | |||||||||||
PT. KOMIPO Energy Indonesia | 2,236 | — | — | — |
(*1) | Financial information of EWP America Inc. includes that of six other subsidiaries, EWP Renewable Corporation, DG Fairhaven Power, LLC, DG Whitefield, LLC, Springfield 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 three other subsidiaries, BSKE-New Industry Fund VII,e-New Industry LB Fund 1 and Songhyune-New Industry Fund. |
(4) | Significant restrictions on the Group’s power over the subsidiaries as of September 30, 2019 are as follows: |
Company | Nature and extent of any significant restrictions | |
Gyeonggi Green Energy Co., Ltd. | Acquisition or disposal of assets of more than | |
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. 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 |
53
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(5) | As of September 30, 2019, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements: |
Company | Group’s unexercised entitlements | |
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 company’s establishment date. |
(6) | Details ofnon-controlling interest prior to intra-group eliminations as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won |
| |||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||
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 | 734,212 | 212,479 | 900,791 | 2,023,773 | ||||||||||||||||
Non-current assets | 228,391 | 586,859 | 496,375 | 3,168,411 | 4,480,036 | |||||||||||||||
Current liabilities | (7,725 | ) | (247,879 | ) | (166,501 | ) | (397,382 | ) | (819,487 | ) | ||||||||||
Non-current liabilities | (48,247 | ) | (91,329 | ) | (83,136 | ) | (2,209,749 | ) | (2,432,461 | ) | ||||||||||
Net assets | 348,710 | 981,863 | 459,217 | 1,462,071 | 3,251,861 | |||||||||||||||
Book value ofnon-controlling interest | 170,868 | 481,113 | 157,190 | 717,345 | 1,526,516 | |||||||||||||||
Sales | 71,283 | 866,546 | 266,516 | 639,087 | 1,843,432 | |||||||||||||||
Profit for the period | 31,361 | 103,838 | 12,598 | 43,759 | 191,556 | |||||||||||||||
Profit for the period attributable tonon-controlling interest | 15,367 | 50,881 | 4,312 | 3,950 | 74,510 | |||||||||||||||
Cash flows from operating activities | 73,682 | 153,988 | 722 | 203,864 | 432,256 | |||||||||||||||
Cash flows from investing activities | 2,757 | (25,959 | ) | 30,717 | (267,789 | ) | (260,274 | ) | ||||||||||||
Cash flows from financing activities before dividends tonon-controlling interest | (50,420 | ) | (43,361 | ) | (34,109 | ) | 73,238 | (54,652 | ) | |||||||||||
Dividends tonon-controlling interest | (36,261 | ) | (39,470 | ) | (1,807 | ) | (16,934 | ) | (94,472 | ) | ||||||||||
Effect of exchange rate fluctuation | 3,921 | (38 | ) | 23 | 7,713 | 11,619 | ||||||||||||||
Net increase (decrease) of cash and cash equivalents | (6,321 | ) | 45,160 | (4,454 | ) | 92 | 34,477 |
In millions of won |
| |||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
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 | 628,725 | 281,390 | 956,928 | 2,030,665 | ||||||||||||||||
Non-current assets | 267,822 | 646,640 | 490,090 | 2,760,500 | 4,165,052 | |||||||||||||||
Current liabilities | (16,819 | ) | (270,097 | ) | (248,402 | ) | (559,552 | ) | (1,094,870 | ) | ||||||||||
Non-current liabilities | (36,594 | ) | (26,331 | ) | (61,698 | ) | (1,933,583 | ) | (2,058,206 | ) | ||||||||||
Net assets | 378,031 | 978,937 | 461,380 | 1,224,293 | 3,042,641 | |||||||||||||||
Book value ofnon-controlling interest | 185,235 | 479,679 | 156,500 | 680,963 | 1,502,377 | |||||||||||||||
Sales | 99,844 | 1,239,604 | 433,701 | 966,037 | 2,739,186 | |||||||||||||||
Profit for the period | 49,631 | 160,791 | 12,937 | 92,457 | 315,816 | |||||||||||||||
Profit for the period attributable tonon-controlling interest | 24,319 | 78,788 | 4,388 | 28,475 | 135,970 | |||||||||||||||
Cash flows from operating activities | 92,822 | 129,700 | 81,042 | 110,448 | 414,012 | |||||||||||||||
Cash flows from investing activities | (4,452 | ) | (123,593 | ) | (50,569 | ) | 35,167 | (143,447 | ) | |||||||||||
Cash flows from financing activities before dividends tonon-controlling interest | (53,733 | ) | (33,737 | ) | (14,591 | ) | (374,669 | ) | (476,730 | ) | ||||||||||
Dividends tonon-controlling interest | (51,626 | ) | (32,414 | ) | (2,839 | ) | (23,452 | ) | (110,331 | ) | ||||||||||
Effect of exchange rate fluctuation | 2,840 | (124 | ) | 31 | 1,304 | 4,051 | ||||||||||||||
Net increase (decrease) of cash and cash equivalents | (14,149 | ) | (60,168 | ) | 13,074 | (251,202 | ) | (312,445 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
17. | Consolidated Subsidiaries, Continued |
(7) | Changes in goodwill |
(i) | Details of goodwill as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Acquisition cost | 2,582 | |||||||
Accumulated impairment | — | — | ||||||
|
|
|
| |||||
Carrying book value | 2,582 | |||||||
|
|
|
|
(ii) | There are no changes in goodwill for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018. |
(8) | Disposals of subsidiaries |
The Group has completed liquidation process of KEPCO Singapore Holdings Pte., Ltd., and is in the process of liquidating Garolim Tidal Power Plant Co., Ltd., as of September 30, 2019.
18. | Investments in Associates and Joint Ventures |
(1) | Investments in associates and joint ventures as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||||
September 30, 2019 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Associates> | ||||||||||||||||||
Korea Gas Corporation (*1) | Importing and wholesaling LNG | KOREA | 20.47 | % | 1,741,436 | |||||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00 | % | 413,153 | 669,330 | ||||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00 | % | 615,860 | 457,964 | ||||||||||||
Korea Power Exchange (*2) | Management of power market and others | KOREA | 100.00 | % | 127,839 | 268,394 | ||||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 88,885 | 129,834 | ||||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00 | % | 132,300 | 117,761 | ||||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50 | % | 40,365 | 126,376 | ||||||||||||
Dongducheon Dream Power Co., Ltd. (*3) | Power generation | KOREA | 33.61 | % | 148,105 | 75,447 | ||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00 | % | 87,426 | 77,735 | ||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 72,000 | 62,449 | ||||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00 | % | 20,635 | 65,943 | ||||||||||||
Korea Electric Power Corporation Fund (*4) | Developing electric enterprises | KOREA | 98.09 | % | 51,500 | 45,312 | ||||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43 | % | 59,000 | 38,528 | ||||||||||||
Nepal Water & Energy Development Company Private Limited (*5) | Construction and operation of utility plant | NEPAL | 57.67 | % | 35,571 | 32,516 | ||||||||||||
PT. Wampu Electric Power | Power generation | INDONESIA | 46.00 | % | 21,292 | 32,280 | ||||||||||||
Others (Daeryun Power Co., Ltd. and 46 others) | 316,131 | 145,374 | ||||||||||||||||
|
|
|
| |||||||||||||||
4,086,679 | ||||||||||||||||||
|
|
|
|
55
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||
September 30, 2019 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Joint ventures> | ||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 250,617 | |||||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00 | % | 301,910 | 262,749 | ||||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20 | % | 94,579 | 240,719 | ||||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00 | % | 111,476 | 188,888 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 121,928 | 182,301 | ||||||||||||
Rabigh Electricity Company | Power generation | | SAUDI ARABIA | | 40.00 | % | 109,743 | 74,204 | ||||||||||
Kelar S.A (*6) | Power generation | CHILE | 65.00 | % | 78,060 | 75,576 | ||||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00 | % | 42,948 | 42,689 | ||||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00 | % | 47,903 | 49,734 | ||||||||||||
Daegu Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 46,225 | 42,601 | ||||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90 | % | 52,700 | 37,619 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 10,858 | 41,695 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00 | % | 28,021 | 43,951 | ||||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00 | % | 27,891 | 33,134 | ||||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00 | % | 37,689 | 37,861 | ||||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00 | % | 26,892 | 31,308 | ||||||||||||
Others (Shuweihat Asia Power Investment B.V.and 42 others) | 344,238 | 277,500 | ||||||||||||||||
|
|
|
| |||||||||||||||
1,687,061 | 1,913,146 | |||||||||||||||||
|
|
|
| |||||||||||||||
5,999,825 | ||||||||||||||||||
|
|
|
|
(*1) | The effective percentage of ownership is 21.57% including 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 its right to nominate directors to the board of directors of the entity. |
(*3) | The effective percentage of ownership is 34.01% including redeemable convertible preferred stock. |
(*4) | 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. |
(*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%. 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. |
56
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Associates> | ||||||||||||||||||
Korea Gas Corporation (*1) | Importing and wholesaling LNG | KOREA | 20.47 | % | 1,701,848 | |||||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00 | % | 413,153 | 647,010 | ||||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00 | % | 615,860 | 511,646 | ||||||||||||
Korea Power Exchange (*2) | Management of power market and others | KOREA | 100.00 | % | 127,839 | 251,802 | ||||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 88,885 | 127,160 | ||||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00 | % | 132,300 | 114,566 | ||||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50 | % | 40,365 | 108,628 | ||||||||||||
Dongducheon Dream Power Co., Ltd. (*3) | Power generation | KOREA | 33.61 | % | 148,105 | 76,386 | ||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00 | % | 84,374 | 77,165 | ||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 72,000 | 67,600 | ||||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00 | % | 20,635 | 57,558 | ||||||||||||
Korea Electric Power Corporation Fund (*4) | Developing electric enterprises | KOREA | 98.09 | % | 51,500 | 47,189 | ||||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43 | % | 59,000 | 40,338 | ||||||||||||
Nepal Water & Energy Development Company Private Limited (*5) | Construction and operation of utility plant | NEPAL | 57.67 | % | 35,571 | 30,961 | ||||||||||||
PT. Wampu Electric Power | Power generation | INDONESIA | 46.00 | % | 21,292 | 31,097 | ||||||||||||
Others (Daeryun Power Co., Ltd. and 42 others) | 333,042 | 173,866 | ||||||||||||||||
|
|
|
| |||||||||||||||
4,064,820 | ||||||||||||||||||
|
|
|
| |||||||||||||||
<Joint ventures> | ||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 240,591 | |||||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00 | % | 301,910 | 239,632 | ||||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20 | % | 94,579 | 208,306 | ||||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00 | % | 111,476 | 177,357 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 121,928 | 166,162 | ||||||||||||
Rabigh Electricity Company | Power generation | SAUDI ARABIA | 40.00 | % | 109,743 | 105,328 | ||||||||||||
Kelar S.A (*6) | Power generation | CHILE | 65.00 | % | 78,060 | 72,824 | ||||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00 | % | 42,948 | 51,094 | ||||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00 | % | 47,903 | 47,903 | ||||||||||||
Daegu Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 46,225 | 41,110 | ||||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90 | % | 52,700 | 42,505 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 10,858 | 39,442 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00 | % | 28,021 | 41,415 | ||||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00 | % | 27,891 | 38,898 | ||||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00 | % | 37,689 | 36,865 | ||||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00 | % | 746 | 7,081 | ||||||||||||
Others (Shuweihat Asia Power Investment B.V. and 38 others) | 330,640 | 257,012 | ||||||||||||||||
|
|
|
| |||||||||||||||
1,647,317 | 1,813,525 | |||||||||||||||||
|
|
|
| |||||||||||||||
5,878,345 | ||||||||||||||||||
|
|
|
|
(*1) | The effective percentage of ownership is 21.57% including 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 its right to nominate directors to the board of directors of the entity. |
(*3) | The effective percentage of ownership is 34.01% including redeemable convertible preferred stock. |
(*4) | 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. |
(*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%. 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. |
57
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(2) | The fair value of associates which are actively traded on an open market and have a readily available market value as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | ||||||||
Investees | September 30, 2019 | December 31, 2018 | ||||||
<Associates> | ||||||||
Korea Electric Power Industrial Development Co., Ltd. | 33,609 | |||||||
Korea Gas Corporation | 748,440 | 910,980 | ||||||
YTN Co., Ltd. | 17,280 | 18,900 | ||||||
SPC Power Corporation | 108,275 | 72,710 | ||||||
PT. Bayan Resources TBK | 938,454 | 1,017,601 |
(3) | Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||||||
Korea Gas Corporation | — | — | (25,704 | ) | 63,035 | 1,989 | 268 | 1,741,436 | ||||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 647,010 | — | — | (11,468 | ) | 13,856 | 19,932 | — | 669,330 | |||||||||||||||||||||||
PT. Bayan Resources TBK | 511,646 | — | — | (71,100 | ) | 14,897 | 2,521 | — | 457,964 | |||||||||||||||||||||||
Korea Power Exchange | 251,802 | — | — | — | 16,687 | — | (95 | ) | 268,394 | |||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 127,160 | — | — | (8,889 | ) | 11,563 | — | — | 129,834 | |||||||||||||||||||||||
S-Power Co., Ltd. | 114,566 | — | — | — | 3,195 | — | — | 117,761 | ||||||||||||||||||||||||
PT. Cirebon Electric Power | 108,628 | — | — | — | 10,063 | (713 | ) | 8,398 | 126,376 | |||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 76,386 | — | — | — | (939 | ) | — | — | 75,447 | |||||||||||||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 77,165 | 3,052 | — | — | (8,227 | ) | 5,745 | — | 77,735 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 67,600 | — | — | — | (5,271 | ) | 120 | — | 62,449 | |||||||||||||||||||||||
SPC Power Corporation | 57,558 | — | — | (5,055 | ) | 5,435 | 7,966 | 39 | 65,943 | |||||||||||||||||||||||
Korea Electric Power Corporation Fund | 47,189 | — | — | — | (1,615 | ) | (262 | ) | — | 45,312 | ||||||||||||||||||||||
YTN Co., Ltd. | 40,338 | — | — | (180 | ) | (1,763 | ) | 7 | 126 | 38,528 | ||||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 30,961 | — | — | — | (598 | ) | 2,153 | — | 32,516 | |||||||||||||||||||||||
PT. Wampu Electric Power | 31,097 | — | — | — | (1,094 | ) | 2,277 | — | 32,280 | |||||||||||||||||||||||
Others | 173,866 | 9,638 | — | (4,295 | ) | (14,628 | ) | (1,988 | ) | (17,219 | ) | 145,374 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
12,690 | — | (126,691 | ) | 104,596 | 39,747 | (8,483 | ) | 4,086,679 | ||||||||||||||||||||||||
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58
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | — | — | (10,200 | ) | 20,226 | — | — | 250,617 | ||||||||||||||||||||||||
Jamaica Public Service Company Limited | 239,632 | — | — | — | 5,113 | 18,004 | — | 262,749 | ||||||||||||||||||||||||
KEPCO SPC Power Corporation | 208,306 | — | — | (17,839 | ) | 35,841 | 14,398 | 13 | 240,719 | |||||||||||||||||||||||
Amman Asia Electric Power Company | 177,357 | — | — | — | 15,203 | (3,672 | ) | — | 188,888 | |||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 166,162 | — | — | — | 10,156 | 5,983 | — | 182,301 | ||||||||||||||||||||||||
Rabigh Electricity Company | 105,328 | — | — | — | (26,647 | ) | (3,744 | ) | (733 | ) | 74,204 | |||||||||||||||||||||
Kelar S.A | 72,824 | — | — | — | 5,811 | (8,391 | ) | 5,332 | 75,576 | |||||||||||||||||||||||
RE Holiday Holdings LLC | 51,094 | — | — | — | (8,104 | ) | (302 | ) | 1 | 42,689 | ||||||||||||||||||||||
Solar Philippines Calatagan Corporation | 47,903 | — | — | (3,026 | ) | 3,190 | 1,667 | — | 49,734 | |||||||||||||||||||||||
Daegu Green Power Co., Ltd. | 41,110 | — | — | — | 1,491 | — | — | 42,601 | ||||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 42,505 | — | — | — | (4,886 | ) | — | — | 37,619 | |||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 39,442 | — | — | — | 860 | 1,393 | — | 41,695 | ||||||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 41,415 | — | — | (1,020 | ) | 2,898 | 657 | 1 | 43,951 | |||||||||||||||||||||||
RE Pioneer Holdings LLC | 38,898 | — | — | (675 | ) | (5,594 | ) | 505 | — | 33,134 | ||||||||||||||||||||||
Chile Solar JV SpA | 36,865 | — | — | — | 1,040 | (44 | ) | — | 37,861 | |||||||||||||||||||||||
PT. Tanjung Power Indonesia | 7,081 | 26,146 | — | — | 3,249 | (5,163 | ) | (5 | ) | 31,308 | ||||||||||||||||||||||
Others | 257,012 | 28,806 | — | (7,570 | ) | 8,986 | (5,211 | ) | (4,523 | ) | 277,500 | |||||||||||||||||||||
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|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,813,525 | 54,952 | — | (40,330 | ) | 68,833 | 16,080 | 86 | 1,913,146 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| |||||||||||||||||
67,642 | — | (167,021 | ) | 173,429 | 55,827 | (8,397 | ) | 5,999,825 | ||||||||||||||||||||||||
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|
In millions of won | ||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||||||
Korea Gas Corporation | — | — | — | 107,952 | (24,843 | ) | (129 | ) | 1,701,848 | |||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 649,973 | — | — | (11,246 | ) | 15,156 | (6,873 | ) | — | 647,010 | ||||||||||||||||||||||
PT. Bayan Resources TBK | 451,831 | — | — | (33,651 | ) | 74,776 | 18,690 | — | 511,646 | |||||||||||||||||||||||
Korea Power Exchange | 237,631 | — | — | — | 16,031 | — | (1,860 | ) | 251,802 | |||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 114,806 | — | — | (8,889 | ) | 21,243 | — | — | 127,160 | |||||||||||||||||||||||
S-Power Co., Ltd. | 116,945 | — | — | — | (2,326 | ) | — | (53 | ) | 114,566 | ||||||||||||||||||||||
PT. Cirebon Electric Power | 97,410 | — | — | (4,432 | ) | 9,385 | 6,265 | — | 108,628 | |||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 53,233 | 36,971 | — | — | (13,824 | ) | — | 6 | 76,386 | |||||||||||||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 61,779 | 12,893 | — | — | (479 | ) | 2,972 | — | 77,165 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 34,903 | 28,080 | — | — | (2,946 | ) | 6,673 | 890 | 67,600 | |||||||||||||||||||||||
SPC Power Corporation | 52,283 | — | — | (9,549 | ) | 4,235 | 10,578 | 11 | 57,558 | |||||||||||||||||||||||
Korea Electric Power Corporation Fund | 47,974 | — | — | — | (505 | ) | (280 | ) | — | 47,189 | ||||||||||||||||||||||
YTN Co., Ltd. | 40,606 | — | — | (180 | ) | 545 | (186 | ) | (447 | ) | 40,338 | |||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 30,498 | — | — | — | (770 | ) | 1,233 | — | 30,961 | |||||||||||||||||||||||
PT. Wampu Electric Power | 29,403 | — | — | — | 408 | 1,286 | — | 31,097 | ||||||||||||||||||||||||
Others | 199,278 | 4,339 | — | (5,102 | ) | (12,872 | ) | (1,367 | ) | (10,410 | ) | 173,866 | ||||||||||||||||||||
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|
|
| |||||||||||||||||
82,283 | — | (73,049 | ) | 216,009 | 14,148 | (11,992 | ) | 4,064,820 | ||||||||||||||||||||||||
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59
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | — | — | — | 20,061 | — | (197 | ) | 240,591 | ||||||||||||||||||||||||
Jamaica Public Service Company Limited | 221,153 | — | — | (4,472 | ) | 13,099 | 9,852 | — | 239,632 | |||||||||||||||||||||||
KEPCO SPC Power Corporation | 217,094 | — | — | (41,601 | ) | 44,909 | (12,092 | ) | (4 | ) | 208,306 | |||||||||||||||||||||
Amman Asia Electric Power Company | 145,676 | — | — | — | 19,604 | 12,077 | — | 177,357 | ||||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 171,055 | — | — | (18,859 | ) | 14,808 | (842 | ) | — | 166,162 | ||||||||||||||||||||||
Rabigh Electricity Company | 99,356 | — | — | (29,067 | ) | 13,305 | 22,371 | (637 | ) | 105,328 | ||||||||||||||||||||||
Kelar S.A | 67,233 | — | — | — | 2,732 | 2,859 | — | 72,824 | ||||||||||||||||||||||||
RE Holiday Holdings LLC | — | 42,948 | — | (112 | ) | 8,055 | 203 | — | 51,094 | |||||||||||||||||||||||
Solar Philippines Calatagan Corporation | — | 47,903 | — | — | — | — | — | 47,903 | ||||||||||||||||||||||||
Daegu Green Power Co., Ltd. | 42,391 | — | — | — | (1,283 | ) | — | 2 | 41,110 | |||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 48,118 | — | — | — | (5,613 | ) | — | — | 42,505 | |||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. (*) | 11,060 | — | — | — | 582 | (1,214 | ) | 29,014 | 39,442 | |||||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | — | 28,021 | — | (1,114 | ) | 13,994 | 514 | — | 41,415 | |||||||||||||||||||||||
RE Pioneer Holdings LLC | — | 27,891 | — | (979 | ) | 11,585 | 401 | — | 38,898 | |||||||||||||||||||||||
Chile Solar JV SpA | — | 36,654 | — | — | 4,453 | (5,278 | ) | 1,036 | 36,865 | |||||||||||||||||||||||
PT. Tanjung Power Indonesia | 1,776 | — | — | — | 3,373 | 1,928 | 4 | 7,081 | ||||||||||||||||||||||||
Others | 247,636 | 53,725 | (1,632 | ) | (5,922 | ) | (16,572 | ) | 10,206 | (30,429 | ) | 257,012 | ||||||||||||||||||||
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1,493,275 | 237,142 | (1,632 | ) | (102,126 | ) | 147,092 | 40,985 | (1,211 | ) | 1,813,525 | ||||||||||||||||||||||
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319,425 | (1,632 | ) | (175,175 | ) | 363,101 | 55,133 | (13,203 | ) | 5,878,345 | |||||||||||||||||||||||
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(*) | Datang Chaoyang Renewable Power Co., Ltd. was merged with Datang KEPCO Chaoyang Renewable Power Co., Ltd. during the year ended December 31, 2018. |
60
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation | 30,060,071 | 18,096,514 | 308,747 | |||||||||||||
Gemeng International Energy Co., Ltd. | 7,231,284 | 5,262,666 | 1,421,065 | 58,838 | ||||||||||||
PT. Bayan Resources TBK | 1,301,447 | 622,134 | 1,909,599 | 231,573 | ||||||||||||
Korea Power Exchange | 314,375 | 45,981 | 79,999 | 13,004 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,069,273 | 621,568 | 378,481 | 45,467 | ||||||||||||
S-Power Co., Ltd. | 790,707 | 547,020 | 440,701 | 6,355 | ||||||||||||
PT. Cirebon Electric Power | 865,972 | 406,424 | 219,119 | 35,891 | ||||||||||||
Dongducheon Dream Power Co., Ltd. | 1,456,570 | 1,191,790 | 528,413 | (941 | ) | |||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 1,187,612 | 872,363 | — | (32,555 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 835,781 | 674,732 | — | (1,227 | ) | |||||||||||
SPC Power Corporation | 269,814 | 21,727 | 46,543 | 32,086 | ||||||||||||
Korea Electric Power Corporation Fund | 46,325 | 134 | 442 | (11 | ) | |||||||||||
YTN Co., Ltd. | 272,652 | 92,855 | 84,805 | (7,367 | ) | |||||||||||
Nepal Water & Energy Development Company Private Limited | 57,044 | 3,122 | — | (814 | ) | |||||||||||
PT. Wampu Electric Power | 228,158 | 157,984 | 12,008 | 1,529 | ||||||||||||
<Joint ventures> | ||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 2,236,712 | 1,499,602 | 542,972 | 59,489 | ||||||||||||
Jamaica Public Service Company Limited | 1,469,479 | 844,002 | 784,380 | 18,846 | ||||||||||||
KEPCO SPC Power Corporation | 350,361 | 30,256 | 143,199 | 47,925 | ||||||||||||
Amman Asia Electric Power Company | 834,208 | 519,249 | 17,186 | 25,348 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 769,871 | 313,996 | 85,641 | 25,286 | ||||||||||||
Rabigh Electricity Company | 2,619,420 | 2,249,758 | 142,724 | (62,118 | ) | |||||||||||
Kelar S.A | 705,802 | 593,791 | 70,359 | 12,512 | ||||||||||||
RE Holiday Holdings LLC | 343,042 | 257,664 | 9,012 | (3,493 | ) | |||||||||||
Solar Philippines Calatagan Corporation | 105,760 | 53,025 | 13,932 | 8,395 | ||||||||||||
Daegu Green Power Co., Ltd. | 569,467 | 497,037 | 227,363 | 5,140 | ||||||||||||
Chun-cheon Energy Co., Ltd. | 616,621 | 490,818 | 242,600 | (16,134 | ) | |||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 192,972 | 88,734 | 17,909 | 2,152 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | 219,334 | 131,432 | 6,256 | 4,192 | ||||||||||||
RE Pioneer Holdings LLC | 256,966 | 190,699 | 7,271 | (2,080 | ) | |||||||||||
Chile Solar JV SpA | 76,323 | 601 | 301 | 2,081 | ||||||||||||
PT. Tanjung Power Indonesia | 632,263 | 542,811 | 69,792 | 9,765 |
61
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation | 31,186,488 | 26,185,038 | 523,480 | |||||||||||||
Gemeng International Energy Co., Ltd. | 7,155,937 | 4,420,561 | 1,921,367 | 120,558 | ||||||||||||
PT. Bayan Resources TBK | 1,388,199 | 566,890 | 1,707,387 | 521,666 | ||||||||||||
Korea Power Exchange | 304,318 | 52,516 | 108,571 | 16,031 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,127,220 | 688,738 | 501,798 | 66,925 | ||||||||||||
S-Power Co., Ltd. | 825,354 | 588,022 | 551,378 | (6,185 | ) | |||||||||||
PT. Cirebon Electric Power | 876,069 | 481,061 | 274,962 | 33,144 | ||||||||||||
Dongducheon Dream Power Co., Ltd. | 1,512,510 | 1,244,178 | 828,430 | (22,864 | ) | |||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 1,015,013 | 702,187 | — | (1,214 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 674,100 | 511,582 | — | 682 | ||||||||||||
SPC Power Corporation | 225,599 | 16,819 | 50,317 | 37,355 | ||||||||||||
Korea Electric Power Corporation Fund | 48,280 | 176 | 1,315 | (649 | ) | |||||||||||
YTN Co., Ltd. | 286,964 | 98,682 | 132,382 | 1,587 | ||||||||||||
Nepal Water & Energy Development Company Private Limited | 55,453 | 4,249 | — | (984 | ) | |||||||||||
PT. Wampu Electric Power | 223,009 | 155,406 | 13,463 | 4,624 | ||||||||||||
<Joint ventures> | ||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 2,259,129 | 1,551,509 | 787,425 | 58,976 | ||||||||||||
Jamaica Public Service Company Limited | 1,396,421 | 827,837 | 992,677 | 32,507 | ||||||||||||
KEPCO SPC Power Corporation | 312,093 | 35,091 | 184,046 | 59,543 | ||||||||||||
Amman Asia Electric Power Company | 792,532 | 496,791 | 23,676 | 32,674 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 751,551 | 336,024 | 117,270 | 37,159 | ||||||||||||
Rabigh Electricity Company | 2,448,690 | 2,003,050 | 274,184 | 38,789 | ||||||||||||
Kelar S.A | 626,206 | 518,135 | 87,507 | 8,587 | ||||||||||||
RE Holiday Holdings LLC | 334,742 | 232,553 | 9,451 | 1,319 | ||||||||||||
Solar Philippines Calatagan Corporation | 121,650 | 51,219 | 16,689 | 8,732 | ||||||||||||
Daegu Green Power Co., Ltd. | 591,263 | 523,972 | 291,734 | (4,424 | ) | |||||||||||
Chun-cheon Energy Co., Ltd. | 666,050 | 523,904 | 320,950 | (19,133 | ) | |||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 190,951 | 92,347 | 18,824 | 2,557 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | 221,304 | 138,473 | 10,567 | 8,625 | ||||||||||||
RE Pioneer Holdings LLC | 252,512 | 174,717 | 12,364 | 6,544 | ||||||||||||
Chile Solar JV SpA | 73,740 | 10 | 73 | 8,906 | ||||||||||||
PT. Tanjung Power Indonesia | 505,551 | 485,321 | 109,029 | 9,717 |
62
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | 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 September 30, 2019 and December 31, 2018 are as follows: |
In millions of won
September 30, 2019 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||
Korea Gas Corporation | 21.57 | % | 1,805,720 | — | — | (64,284 | ) | 1,741,436 | ||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 1,968,618 | 34.00 | % | 669,330 | — | — | — | 669,330 | ||||||||||||||||||||
PT. Bayan Resources TBK | 679,313 | 20.00 | % | 135,863 | 398,481 | — | (76,380 | ) | 457,964 | |||||||||||||||||||
Korea Power Exchange | 268,394 | 100.00 | % | 268,394 | — | — | — | 268,394 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 447,705 | 29.00 | % | 129,834 | — | — | — | 129,834 | ||||||||||||||||||||
S-Power Co., Ltd. | 243,687 | 49.00 | % | 119,407 | — | (1,646 | ) | — | 117,761 | |||||||||||||||||||
PT. Cirebon Electric Power | 459,548 | 27.50 | % | 126,376 | — | — | — | 126,376 | ||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 264,780 | 34.01 | % | 90,052 | 1,757 | (3,779 | ) | (12,583 | ) | 75,447 | ||||||||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 315,249 | 25.00 | % | 78,812 | 305 | (1,094 | ) | (288 | ) | 77,735 | ||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 161,049 | 40.00 | % | 64,420 | 12,800 | (14,771 | ) | — | 62,449 | |||||||||||||||||||
SPC Power Corporation | 248,087 | 38.00 | % | 94,273 | — | — | (28,330 | ) | 65,943 | |||||||||||||||||||
Korea Electric Power Corporation Fund | 46,191 | 98.09 | % | 45,309 | — | — | 3 | 45,312 | ||||||||||||||||||||
YTN Co., Ltd. | 179,797 | 21.43 | % | 38,528 | — | — | — | 38,528 | ||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 53,922 | 57.67 | % | 31,097 | 972 | — | 447 | 32,516 | ||||||||||||||||||||
PT. Wampu Electric Power | 70,174 | 46.00 | % | 32,280 | — | — | — | 32,280 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 737,110 | 34.00 | % | 250,617 | — | — | — | 250,617 | ||||||||||||||||||||
Jamaica Public Service Company Limited | 625,477 | 40.00 | % | 250,191 | (80,161 | ) | — | 92,719 | 262,749 | |||||||||||||||||||
KEPCO SPC Power Corporation | 320,105 | 75.20 | % | 240,719 | — | — | — | 240,719 | ||||||||||||||||||||
Amman Asia Electric Power Company | 314,959 | 60.00 | % | 188,975 | — | — | (87 | ) | 188,888 | |||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 455,875 | 40.00 | % | 182,350 | — | — | (49 | ) | 182,301 | |||||||||||||||||||
Rabigh Electricity Company | 369,662 | 40.00 | % | 147,865 | — | (70,977 | ) | (2,684 | ) | 74,204 | ||||||||||||||||||
Kelar S.A | 112,011 | 65.00 | % | 72,807 | 2,577 | — | 192 | 75,576 | ||||||||||||||||||||
RE Holiday Holdings LLC | 85,378 | 50.00 | % | 42,689 | — | — | — | 42,689 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 52,735 | 38.00 | % | 20,039 | 29,695 | — | — | 49,734 | ||||||||||||||||||||
Daegu Green Power Co., Ltd. | 72,430 | 29.00 | % | 21,005 | 84 | — | 21,512 | 42,601 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 125,803 | 29.90 | % | 37,615 | 4 | — | — | 37,619 | ||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 104,238 | 40.00 | % | 41,695 | — | — | — | 41,695 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 87,902 | 50.00 | % | 43,951 | — | — | — | 43,951 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 66,267 | 50.00 | % | 33,134 | — | — | — | 33,134 | ||||||||||||||||||||
Chile Solar JV SpA | 75,722 | 50.00 | % | 37,861 | — | — | — | 37,861 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 89,452 | 35.00 | % | 31,308 | — | — | — | 31,308 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
63
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | 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 September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won
December 31, 2018 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||
Korea Gas Corporation | 21.57 | % | 1,834,141 | — | — | (132,293 | ) | 1,701,848 | ||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 2,735,376 | 34.00 | % | 930,028 | — | — | (283,018 | ) | 647,010 | |||||||||||||||||||
PT. Bayan Resources TBK | 821,309 | 20.00 | % | 164,262 | 423,763 | — | (76,379 | ) | 511,646 | |||||||||||||||||||
Korea Power Exchange | 251,802 | 100.00 | % | 251,802 | — | — | — | 251,802 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 438,482 | 29.00 | % | 127,160 | — | — | — | 127,160 | ||||||||||||||||||||
S-Power Co., Ltd. | 237,332 | 49.00 | % | 116,293 | — | (1,727 | ) | — | 114,566 | |||||||||||||||||||
PT. Cirebon Electric Power | 395,008 | 27.50 | % | 108,628 | — | — | — | 108,628 | ||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 268,332 | 34.01 | % | 91,260 | 1,757 | (4,049 | ) | (12,582 | ) | 76,386 | ||||||||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 312,826 | 25.00 | % | 78,207 | 253 | (1,006 | ) | (289 | ) | 77,165 | ||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 162,518 | 40.00 | % | 65,007 | 12,800 | (10,207 | ) | — | 67,600 | |||||||||||||||||||
SPC Power Corporation | 208,780 | 38.00 | % | 79,336 | — | — | (21,778 | ) | 57,558 | |||||||||||||||||||
Korea Electric Power Corporation Fund | 48,104 | 98.09 | % | 47,185 | — | — | 4 | 47,189 | ||||||||||||||||||||
YTN Co., Ltd. | 188,282 | 21.43 | % | 40,346 | — | (6 | ) | (2 | ) | 40,338 | ||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 51,204 | 57.67 | % | 29,529 | 972 | — | 460 | 30,961 | ||||||||||||||||||||
PT. Wampu Electric Power | 67,603 | 46.00 | % | 31,097 | — | — | — | 31,097 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 707,620 | 34.00 | % | 240,591 | — | — | — | 240,591 | ||||||||||||||||||||
Jamaica Public Service Company Limited | 568,584 | 40.00 | % | 227,434 | (80,161 | ) | — | 92,359 | 239,632 | |||||||||||||||||||
KEPCO SPC Power Corporation | 277,002 | 75.20 | % | 208,306 | — | — | — | 208,306 | ||||||||||||||||||||
Amman Asia Electric Power Company | 295,741 | 60.00 | % | 177,445 | — | — | (88 | ) | 177,357 | |||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 415,527 | 40.00 | % | 166,211 | — | — | (49 | ) | 166,162 | |||||||||||||||||||
Rabigh Electricity Company | 445,640 | 40.00 | % | 178,256 | — | (70,977 | ) | (1,951 | ) | 105,328 | ||||||||||||||||||
Kelar S.A | 108,071 | 65.00 | % | 70,246 | 2,470 | — | 108 | 72,824 | ||||||||||||||||||||
RE Holiday Holdings LLC | 102,189 | 50.00 | % | 51,094 | — | — | — | 51,094 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 70,431 | 38.00 | % | 26,764 | 21,139 | — | — | 47,903 | ||||||||||||||||||||
Daegu Green Power Co., Ltd. | 67,291 | 29.00 | % | 19,514 | 84 | — | 21,512 | 41,110 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 142,146 | 29.90 | % | 42,502 | 3 | — | — | 42,505 | ||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 98,604 | 40.00 | % | 39,442 | — | — | — | 39,442 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 82,831 | 50.00 | % | 41,415 | — | — | — | 41,415 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 77,795 | 50.00 | % | 38,898 | — | — | — | 38,898 | ||||||||||||||||||||
Chile Solar JV SpA | 73,730 | 50.00 | % | 36,865 | — | — | — | 36,865 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 20,230 | 35.00 | % | 7,081 | — | — | — | 7,081 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
64
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(6) | As of September 30, 2019 and December 31, 2018, 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 | September 30, 2019 | December 31, 2018 | ||||||||||||||
Unrecognized equity interest | Accumulated unrecognized equity interest | Unrecognized equity interest | Accumulated unrecognized equity interest | |||||||||||||
Hadong Mineral Fiber Co., Ltd. | 2 | — | 2 | |||||||||||||
PT. Mutiara Jawa | — | — | (746 | ) | — | |||||||||||
Eurasia Energy Holdings | 13 | 192 | 7 | 179 | ||||||||||||
Gunsan Bio Energy Co., Ltd. | 895 | 3,097 | 916 | 2,202 | ||||||||||||
Daehan Wind Power PSC | — | — | (412 | ) | — | |||||||||||
Hyundai Energy Co., Ltd. | 11,922 | 37,763 | 25,841 | 25,841 | ||||||||||||
Nghi Son 2 Power LLC | 107,381 | 149,040 | 41,659 | 41,659 | ||||||||||||
Samcheok Eco Materials Co., Ltd. | (99 | ) | 1,186 | 1,285 | 1,285 | |||||||||||
Naepo Green Energy Co., Ltd. | 5,745 | 5,745 | — | — |
(7) | As of September 30, 2019, 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 (NPSCo-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) | Hyundai Energy Co., Ltd. |
The Group had placed guarantees for a fixed return on the investment to NH Power II Co., Ltd. and National Agricultural Cooperative Federation (“NACF”) and had obtained the rights to acquire the investment securities in return preferentially. In addition, NH Power II Co., Ltd. and NACF have a right, which can be exercised for 30 days starting from 2 months to 1 month prior to 17 years after the termination date of the contract to sell their shares to the Group.
(iii) | Taebaek Wind Power Co., Ltd. |
In the case wherenon-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.
(iv) | Pyeongchang Wind Power Co., Ltd. |
In the case wherenon-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.
(v) | Jeongam Wind Power Co., Ltd. |
In the case wherenon-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.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(7) | As of September 30, 2019, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued: |
(vi) | Daejung Offshore Wind Power Co., Ltd. |
In the case where Doosan Heavy Industries Co., Ltd., aco-participant of the joint venture agreement, decides to dispose its shares in Daejung Offshore Wind Power Co., Ltd., the Group is obligated to acquire those shares after evaluating the economic feasibility of the facilities installed by Doosan Heavy Industries Co., Ltd. In addition, other provision of this agreement, Doosan Heavy Industries & Construction Co., Ltd., as a supplier of equipment and materials, shall hold more than 7.5% of the total number of shares issued, even if some of its shares are transferred to other or third partier under this Convention, for five years after the commencement of its operation.
(vii) | Hyundai Green Power Co., Ltd. |
As of September 30, 2019, Hyundai Green Power Co., Ltd., an associate of the Group, which engages in the byproduct gas power generating business, entered into a project financing agreement with a limit ofW852.1 billion with Korea Development Bank and others. At a certain period in the future, the Group has call option against the financial investors (Korea Development Bank and others) and also has an obligation to purchase its shares when claimed by the financial investors. At a certain period 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 Company.
(viii) | YeongGwang Yaksu Wind Electric. Co., Ltd. |
As of September 30, 2019, YeongGwang Yaksu Wind Electric. Co., Ltd., an associate of the Group, which engages in the wind power generating business, entered into a project financing agreement with a limit ofW46 billion with IBK and others.
(ix) | Daegu Green Power Co., Ltd. |
In relation to the interest of Daegu Green Power Co., Ltd. held by the financial investors, the Group has rights to purchase all the shares at the yield-based transfer amount agreed upon between the shareholders after 5, 10 and 13 years from the date of the investment.
In relation to the interest of Daegu Green Power Co. Ltd. held by Lotte Engineering & Construction Co., the Group has the right to purchase all or part of the shares at the yield-based transferring amount agreed upon between the shareholders.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
18. | Investments in Associates and Joint Ventures, Continued |
(8) | Significant restrictions on the Group’s power over associates or joint ventures as of September 30, 2019 are as follows: |
Company | Nature and extent of any significant restrictions | |
Daeryun Power Co., Ltd. | Principals 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. | |
Changjuk Wind Power Co., Ltd. | Principals 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. | |
Taebaek Wind Power Co., Ltd. | Financial institutions can reject or defer an approval with regard to the request for fund executions on subordinated loans of shareholders in order to pay senior loans based on the loan agreement. | |
Pyeongchang Wind Power Co., Ltd. | Principals 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. | |
Daegu Green Power Co., Ltd. | Principals on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions is obtained. | |
KNH Solar Co., Ltd. | Principal and interest, dividends to shareholders cannot be paid without written consent of financial institutions. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
19. | Property, Plant and Equipment |
(1) | Property, plant and equipment as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Accumulated impairment losses | Book value | ||||||||||||||||
Land | (21,968 | ) | — | (25,638 | ) | 13,668,565 | ||||||||||||||
Buildings | 19,796,252 | (62,073 | ) | (8,088,396 | ) | (4,829 | ) | 11,640,954 | ||||||||||||
Structures | 69,260,073 | (187,100 | ) | (25,137,070 | ) | (9,322 | ) | 43,926,581 | ||||||||||||
Machinery | 84,156,101 | (160,852 | ) | (37,469,298 | ) | (443,031 | ) | 46,082,920 | ||||||||||||
Ships | 3,104 | — | (2,878 | ) | — | 226 | ||||||||||||||
Vehicles | 283,349 | (2,763 | ) | (230,882 | ) | (117 | ) | 49,587 | ||||||||||||
Equipment | 1,639,331 | (270 | ) | (1,308,560 | ) | (42 | ) | 330,459 | ||||||||||||
Tools | 1,084,952 | (470 | ) | (921,520 | ) | (38 | ) | 162,924 | ||||||||||||
Construction-in-progress | 31,466,639 | (55,766 | ) | — | (171,096 | ) | 31,239,777 | |||||||||||||
Right-of-use assets | 7,187,285 | — | (2,611,986 | ) | — | 4,575,299 | ||||||||||||||
Asset retirement costs | 9,782,734 | — | (4,078,888 | ) | (146,423 | ) | 5,557,423 | |||||||||||||
Others | 12,824,071 | — | (10,150,159 | ) | — | 2,673,912 | ||||||||||||||
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(491,262 | ) | (89,999,637 | ) | (800,536 | ) | 159,908,627 | ||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Accumulated impairment losses | Book value | ||||||||||||||||
Land | (21,968 | ) | — | — | 13,532,324 | |||||||||||||||
Buildings | 19,431,536 | (63,189 | ) | (7,494,176 | ) | (3,669 | ) | 11,870,502 | ||||||||||||
Structures | 66,335,506 | (190,854 | ) | (23,615,312 | ) | (8,399 | ) | 42,520,941 | ||||||||||||
Machinery | 82,047,823 | (173,242 | ) | (34,151,878 | ) | (439,350 | ) | 47,283,353 | ||||||||||||
Ships | 3,655 | — | (3,353 | ) | — | 302 | ||||||||||||||
Vehicles | 287,954 | (4,220 | ) | (215,649 | ) | (116 | ) | 67,969 | ||||||||||||
Equipment | 1,558,309 | (418 | ) | (1,175,408 | ) | (42 | ) | 382,441 | ||||||||||||
Tools | 1,073,145 | (675 | ) | (880,432 | ) | (38 | ) | 192,000 | ||||||||||||
Construction-in-progress | 29,026,880 | (54,740 | ) | — | (205,713 | ) | 28,766,427 | |||||||||||||
Finance lease assets | 2,390,701 | (26 | ) | (2,194,971 | ) | — | 195,704 | |||||||||||||
Asset retirement costs | 9,424,181 | — | (3,706,004 | ) | (146,423 | ) | 5,571,754 | |||||||||||||
Others | 11,875,394 | — | (9,515,917 | ) | — | 2,359,477 | ||||||||||||||
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(509,332 | ) | (82,953,100 | ) | (803,750 | ) | 152,743,194 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
19. | Property, Plant and Equipment, Continued |
(2) | Changes in property, plant and equipment for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisition | Disposal | Depreciation | Impairment (*) | Others | Ending balance | |||||||||||||||||||||||||
Land | — | 87,106 | (26,143 | ) | — | (25,623 | ) | 100,901 | 13,690,533 | |||||||||||||||||||||||
(Government grants) | (21,968 | ) | — | — | — | — | — | — | (21,968 | ) | ||||||||||||||||||||||
Buildings | 11,933,691 | — | 5,631 | (12,461 | ) | (596,237 | ) | (1,160 | ) | 373,563 | 11,703,027 | |||||||||||||||||||||
(Government grants) | (63,189 | ) | — | (592 | ) | — | 4,313 | — | (2,605 | ) | (62,073 | ) | ||||||||||||||||||||
Structures | 42,711,795 | — | 201 | (331,103 | ) | (1,732,756 | ) | (923 | ) | 3,466,467 | 44,113,681 | |||||||||||||||||||||
(Government grants) | (190,854 | ) | — | — | 1,478 | 7,016 | — | (4,740 | ) | (187,100 | ) | |||||||||||||||||||||
Machinery | 47,456,595 | — | 221,302 | (181,257 | ) | (3,947,767 | ) | (5,142 | ) | 2,700,041 | 46,243,772 | |||||||||||||||||||||
(Government grants) | (173,242 | ) | — | — | 1,059 | 12,904 | — | (1,573 | ) | (160,852 | ) | |||||||||||||||||||||
Ships | 302 | — | — | — | (76 | ) | — | — | 226 | |||||||||||||||||||||||
Vehicles | 72,189 | — | 1,499 | (127 | ) | (23,366 | ) | — | 2,155 | 52,350 | ||||||||||||||||||||||
(Government grants) | (4,220 | ) | — | (161 | ) | — | 1,621 | — | (3 | ) | (2,763 | ) | ||||||||||||||||||||
Equipment | 382,859 | — | 25,952 | (56 | ) | (149,395 | ) | (227 | ) | 71,596 | 330,729 | |||||||||||||||||||||
(Government grants) | (418 | ) | — | (54 | ) | — | 202 | — | — | (270 | ) | |||||||||||||||||||||
Tools | 192,675 | — | 12,437 | (12 | ) | (63,605 | ) | — | 21,899 | 163,394 | ||||||||||||||||||||||
(Government grants) | (675 | ) | — | (7 | ) | — | 212 | — | — | (470 | ) | |||||||||||||||||||||
Construction-in-progress | 28,821,167 | — | 8,204,545 | (2 | ) | — | (3,494 | ) | (5,726,673 | ) | 31,295,543 | |||||||||||||||||||||
(Government grants) | (54,740 | ) | — | (9,964 | ) | — | — | — | 8,938 | (55,766 | ) | |||||||||||||||||||||
Finance lease assets | 195,730 | (195,730 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
(Government grants) | (26 | ) | 26 | — | — | — | — | — | — | |||||||||||||||||||||||
Right-of-use assets | — | 4,784,247 | 210,230 | — | (419,178 | ) | — | — | 4,575,299 | |||||||||||||||||||||||
Asset retirement costs | 5,571,754 | — | 1 | — | (471,567 | ) | — | 457,235 | 5,557,423 | |||||||||||||||||||||||
Others | 2,359,477 | — | 1,108 | (4,236 | ) | (606,632 | ) | (583 | ) | 924,778 | 2,673,912 | |||||||||||||||||||||
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4,588,543 | 8,759,234 | (552,860 | ) | (7,984,311 | ) | (37,152 | ) | 2,391,979 | 159,908,627 | |||||||||||||||||||||||
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(*) | KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiary, performed an impairment test over the land and others. |
The Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
19. | Property, Plant and Equipment, Continued |
(3) | Changes in property, plant and equipment for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | December 31, 2018 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposal | Depreciation | Impairment (*1) | Others | Ending balance | ||||||||||||||||||||||
Land | 2,254 | (18,240 | ) | — | — | 251,736 | 13,554,292 | |||||||||||||||||||||
(Government grants) | (21,968 | ) | — | — | — | — | — | (21,968 | ) | |||||||||||||||||||
Buildings | 12,053,526 | 10,156 | (8,545 | ) | (767,845 | ) | (1,896 | ) | 648,295 | 11,933,691 | ||||||||||||||||||
(Government grants) | (63,539 | ) | (4,213 | ) | 31 | 6,836 | — | (2,304 | ) | (63,189 | ) | |||||||||||||||||
Structures | 44,104,778 | 11,123 | (587,278 | ) | (2,476,278 | ) | (360 | ) | 1,659,810 | 42,711,795 | ||||||||||||||||||
(Government grants) | (196,414 | ) | — | 3,270 | 10,292 | — | (8,002 | ) | (190,854 | ) | ||||||||||||||||||
Machinery (*2) | 46,875,798 | 460,676 | (250,159 | ) | (4,973,252 | ) | (393,839 | ) | 5,737,371 | 47,456,595 | ||||||||||||||||||
(Government grants) | (183,188 | ) | (1,185 | ) | 823 | 18,099 | — | (7,791 | ) | (173,242 | ) | |||||||||||||||||
Ships | 403 | — | — | (103 | ) | — | 2 | 302 | ||||||||||||||||||||
Vehicles | 81,038 | 2,774 | (402 | ) | (32,620 | ) | — | 21,399 | 72,189 | |||||||||||||||||||
(Government grants) | (6,322 | ) | (45 | ) | — | 2,146 | — | 1 | (4,220 | ) | ||||||||||||||||||
Equipment | 420,672 | 36,884 | (265 | ) | (187,821 | ) | (36 | ) | 113,425 | 382,859 | ||||||||||||||||||
(Government grants) | (761 | ) | (22 | ) | — | 365 | — | — | (418 | ) | ||||||||||||||||||
Tools | 200,663 | 12,331 | (268 | ) | (83,283 | ) | (6 | ) | 63,238 | 192,675 | ||||||||||||||||||
(Government grants) | (1,027 | ) | (44 | ) | — | 432 | — | (36 | ) | (675 | ) | |||||||||||||||||
Construction-in-progress | 25,572,541 | 11,749,397 | (47,463 | ) | — | (167,603 | ) | (8,285,705 | ) | 28,821,167 | ||||||||||||||||||
(Government grants) | (49,084 | ) | (23,895 | ) | — | — | — | 18,239 | (54,740 | ) | ||||||||||||||||||
Finance lease assets | 297,679 | — | — | (101,888 | ) | — | (61 | ) | 195,730 | |||||||||||||||||||
(Government grants) | (27 | ) | — | — | 1 | — | — | (26 | ) | |||||||||||||||||||
Asset retirement costs | 6,039,484 | 1,988 | — | (610,435 | ) | (146,424 | ) | 287,141 | 5,571,754 | |||||||||||||||||||
Others | 2,439,620 | 8,691 | (715 | ) | (709,579 | ) | — | 621,460 | 2,359,477 | |||||||||||||||||||
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12,266,870 | (909,211 | ) | (9,904,933 | ) | (710,164 | ) | 1,118,218 | 152,743,194 | ||||||||||||||||||||
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(*1) | Korea Hydro & Nuclear Power Co., Ltd. And Korea Western Power Co., Ltd., 100% owned subsidiaries, have determined that there are impairment indicators for the shutdowns of certain power generation units and fire, and performed an impairment test over the individual assets. As a result, the Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss in the consolidated statements of comprehensive income. |
(*2) | As described in Note 27, the amount of acquisition of machinery includes |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
20. | Investment Properties |
(1) | Investment properties as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | — | 137,519 | |||||||||||||
Buildings | 67,464 | (14 | ) | (37,088 | ) | 30,362 | ||||||||||
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(14 | ) | (37,088 | ) | 167,881 | ||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | — | 139,940 | |||||||||||||
Buildings | 34,801 | (50 | ) | (15,132 | ) | 19,619 | ||||||||||
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(50 | ) | (15,132 | ) | 159,559 | ||||||||||||
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(2) | Changes in investment properties for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Beginning balance | Depreciation | Others (*) | Ending balance | |||||||||||||
Land | — | (2,421 | ) | 137,519 | ||||||||||||
Buildings | 19,669 | (4,671 | ) | 15,378 | 30,376 | |||||||||||
(Government grants) | (50 | ) | — | 36 | (14 | ) | ||||||||||
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(4,671 | ) | 12,993 | 167,881 | |||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||
Beginning balance | Depreciation | Others | Ending balance | |||||||||||||
Land | — | (124,265 | ) | 139,940 | ||||||||||||
Buildings | 20,592 | (924 | ) | 1 | 19,669 | |||||||||||
(Government grants) | (83 | ) | 1 | 32 | (50 | ) | ||||||||||
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(923 | ) | (124,232 | ) | 159,559 | ||||||||||||
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(*) | As described in Note 42, the Group reclassified land and buildings amounting to |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
20. | Investment Properties, Continued |
(3) | Income and expenses related to investment properties for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Rental income | 7,420 | 2,411 | 7,091 | |||||||||||||
Operating and maintenance expenses related to rental income | (380 | ) | (859 | ) | (209 | ) | (717 | ) | ||||||||
Operating and maintenance expenses not related to rental income | — | (3,812 | ) | — | — | |||||||||||
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2,749 | 2,202 | 6,374 | ||||||||||||||
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(4) | Fair value of investment properties as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Book value | Fair value | Book value | Fair value | |||||||||||||
Land | 215,690 | 139,940 | 167,178 | |||||||||||||
Buildings | 30,362 | 40,004 | 19,619 | 23,276 | ||||||||||||
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255,694 | 159,559 | 190,454 | ||||||||||||||
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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 property is held under freehold interests. |
21. | Construction Contracts |
(1) | Changes in total contract amount in which revenue is not yet recognized for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Beginning balance | Increase (decrease) (*) | Recognized as revenue | Ending balance | |||||||||||||
Nuclear power plant construction in UAE and others | 328,227 | (812,124 | ) | 3,136,891 |
(*) | For the nine-month period ended September 30, 2019, the increased balance of contracts from new orders and foreign exchange impact is |
In millions of won | December 31, 2018 | |||||||||||||||
Beginning balance | Increase (decrease) (*) | Recognized as revenue | Ending balance | |||||||||||||
Nuclear power plant construction in UAE and others | 1,186,584 | (1,742,391 | ) | 3,620,788 |
(*) | For the year ended December 31, 2018, the increased balance of contracts from new orders and foreign exchange impact is |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
21. | Construction Contracts, Continued |
(2) | Accumulated earned revenue, costs and others related to the Group’s construction contracts as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||
Accumulated earned revenue | Accumulated costs | Accumulated profit | ||||||||||
Nuclear power plant construction in UAE and others | 19,318,071 | 1,213,436 |
In millions of won | December 31, 2018 | |||||||||||
Accumulated earned revenue | Accumulated costs | Accumulated profit | ||||||||||
Nuclear power plant construction in UAE and others | 18,651,188 | 1,150,032 |
(3) | Gross amount due from customers recognized as assets and due to customers recognized as liabilities for contract work as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Assets (*1) | Liabilities (*2) | Assets (*1) | Liabilities (*2) | |||||||||||||
Nuclear power plant construction in UAE and others | 123,199 | 36,232 | 350,460 |
(*1) | Included in trade and other receivables, net, in the consolidated statements of financial position. |
(*2) | Included innon-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 financial statements. |
(5) | Changes in estimates of contract revenues and costs related to the Group’s construction services for the nine-month period ended September 30, 2019 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||||||||||
Assets | 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 | Gross | Allowance for doubtful accounts | Gross | Allowance for doubtful accounts | Changes in estimated total contract costs | ||||||||||||||||||||||||||||
Transmission and distribution | 27,882 | 21,591 | 6,291 | 29,770 | — | — | — | — | ||||||||||||||||||||||||||||
Plant maintenance & engineering service | 880 | 5,981 | 1,858 | 4,123 | 24,913 | 23 | 2,452 | — | 9,537 | |||||||||||||||||||||||||||
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33,863 | 23,449 | 10,414 | 54,683 | 23 | 2,452 | — | 9,537 | |||||||||||||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
22. | Intangible Assets other than Goodwill |
(1) | Intangible assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated amortization | Accumulated impairment losses | Book value | ||||||||||||||||
Software | (263 | ) | (524,607 | ) | — | 154,088 | ||||||||||||||
Licenses and franchises | 3,398 | — | (3,398 | ) | — | — | ||||||||||||||
Copyrights, patents rights and other industrial rights | 99,211 | — | (37,657 | ) | — | 61,554 | ||||||||||||||
Mining rights | 588,277 | — | (27,076 | ) | (516,193 | ) | 45,008 | |||||||||||||
Development expenditures | 905,223 | (1,485 | ) | (812,190 | ) | — | 91,548 | |||||||||||||
Intangible assets under development | 59,275 | (11,039 | ) | — | (12,844 | ) | 35,392 | |||||||||||||
Usage rights of donated assets and others | 582,825 | — | (384,950 | ) | — | 197,875 | ||||||||||||||
Leasehold rights | 25,989 | — | (20,461 | ) | — | 5,528 | ||||||||||||||
Greenhouse gas emissions rights | 148,605 | — | — | — | 148,605 | |||||||||||||||
Others | 383,095 | (80 | ) | (114,993 | ) | (11,918 | ) | 256,104 | ||||||||||||
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(12,867 | ) | (1,925,332 | ) | (540,955 | ) | 995,702 | ||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated amortization | Accumulated impairment losses | Book value | ||||||||||||||||
Software | (420 | ) | (461,981 | ) | — | 157,261 | ||||||||||||||
Licenses and franchises | 3,398 | — | (3,398 | ) | — | — | ||||||||||||||
Copyrights, patents rights and other industrial rights | 97,033 | — | (29,921 | ) | — | 67,112 | ||||||||||||||
Mining rights | 561,945 | — | (27,421 | ) | — | 534,524 | ||||||||||||||
Development expenditures | 878,462 | (2,110 | ) | (785,976 | ) | — | 90,376 | |||||||||||||
Intangible assets under development | 83,381 | (10,564 | ) | — | (12,845 | ) | 59,972 | |||||||||||||
Usage rights of donated assets and others | 459,682 | — | (372,671 | ) | — | 87,011 | ||||||||||||||
Leasehold rights | 25,482 | — | (19,930 | ) | — | 5,552 | ||||||||||||||
Greenhouse gas emissions rights | 7,050 | — | — | — | 7,050 | |||||||||||||||
Others | 333,621 | — | (104,486 | ) | (12,051 | ) | 217,084 | |||||||||||||
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(13,094 | ) | (1,805,784 | ) | (24,896 | ) | 1,225,942 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
22. | Intangible Assets other than Goodwill, Continued |
(2) | Changes in intangible assets for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposal | Amortization | Impairment (*) | Others | Ending balance | ||||||||||||||||||||||
Software | 15,091 | — | (60,395 | ) | — | 41,974 | 154,351 | |||||||||||||||||||||
(Government grants) | (420 | ) | — | — | 168 | — | (11 | ) | (263 | ) | ||||||||||||||||||
Copyrights, patents rights and other industrial rights | 67,112 | 166 | (29 | ) | (6,801 | ) | — | 1,106 | 61,554 | |||||||||||||||||||
Mining rights | 534,524 | 9,663 | — | (6,550 | ) | (513,519 | ) | 20,890 | 45,008 | |||||||||||||||||||
Development expenditures | 92,486 | — | — | (20,689 | ) | — | 21,236 | 93,033 | ||||||||||||||||||||
(Government grants) | (2,110 | ) | — | — | 625 | — | — | (1,485 | ) | |||||||||||||||||||
Intangible assets under development | 70,536 | 24,008 | — | — | — | (48,113 | ) | 46,431 | ||||||||||||||||||||
(Government grants) | (10,564 | ) | — | — | — | — | (475 | ) | (11,039 | ) | ||||||||||||||||||
Usage rights of donated assets and others | 87,011 | — | — | (11,259 | ) | — | 122,123 | 197,875 | ||||||||||||||||||||
(Government grants) | — | — | — | — | — | — | — | |||||||||||||||||||||
Leasehold rights | 5,552 | — | — | (531 | ) | — | 507 | 5,528 | ||||||||||||||||||||
Greenhouse gas emissions rights | 7,050 | 93,571 | (7,050 | ) | — | — | 55,034 | 148,605 | ||||||||||||||||||||
Others | 217,084 | 626 | (164 | ) | (10,183 | ) | 59 | 48,762 | 256,184 | |||||||||||||||||||
(Government grants) | — | — | — | 1 | — | (81 | ) | (80 | ) | |||||||||||||||||||
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143,125 | (7,243 | ) | (115,614 | ) | (513,460 | ) | 262,952 | 995,702 | ||||||||||||||||||||
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(*) | KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiaries, performed an impairment test over the mining rights and the Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss. |
In millions of won | December 31, 2018 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposal | Amortization | Impairment (*) | Others | Ending balance | ||||||||||||||||||||||
Software | 10,861 | (1 | ) | (53,755 | ) | — | 74,685 | 157,681 | ||||||||||||||||||||
(Government grants) | (486 | ) | — | — | 254 | — | (188 | ) | (420 | ) | ||||||||||||||||||
Copyrights, patents rights and other industrial rights | 23,981 | 28 | — | (8,665 | ) | (13 | ) | 51,781 | 67,112 | |||||||||||||||||||
Mining rights | 539,633 | 29,687 | — | (3,186 | ) | — | (31,610 | ) | 534,524 | |||||||||||||||||||
Development expenditures | 84,518 | 823 | — | (27,100 | ) | — | 34,245 | 92,486 | ||||||||||||||||||||
(Government grants) | (3,702 | ) | — | — | 1,591 | — | 1 | (2,110 | ) | |||||||||||||||||||
Intangible assets under development | 139,910 | 67,383 | — | — | (8,912 | ) | (127,845 | ) | 70,536 | |||||||||||||||||||
(Government grants) | (10,540 | ) | — | — | — | 799 | (823 | ) | (10,564 | ) | ||||||||||||||||||
Usage rights of donated assets and others | 101,658 | — | — | (13,307 | ) | — | (1,340 | ) | 87,011 | |||||||||||||||||||
(Government grants) | (11 | ) | — | — | 11 | — | — | — | ||||||||||||||||||||
Leasehold rights | 5,044 | — | — | (667 | ) | — | 1,175 | 5,552 | ||||||||||||||||||||
Greenhouse gas emissions rights | — | — | — | — | — | 7,050 | 7,050 | |||||||||||||||||||||
Others | 181,225 | 1,805 | (8 | ) | (14,114 | ) | (14 | ) | 48,190 | 217,084 | ||||||||||||||||||
(Government grants) | — | — | — | — | — | — | — | |||||||||||||||||||||
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110,587 | (9 | ) | (118,938 | ) | (8,140 | ) | 55,321 | 1,225,942 | ||||||||||||||||||||
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(*) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
22. | Intangible Assets other than Goodwill, Continued |
(3) | Significant specific intangible assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won and thousands of Australian dollars | ||||||||||||
September 30, 2019 | ||||||||||||
Type | Description | Currency | Amount | Remaining useful lives | ||||||||
Software | ERP system and others | KRW | 520 | 1 year and 5 months ~ 1 year and 7 months | ||||||||
Electricity sales information system | KRW | 5,354 | 3 years and 3 months | |||||||||
Copyrights, patents rights and other industrial rights | Smart technology verification and standard design project conducting right | KRW | 7,404 | 3 years | ||||||||
Contributions to ARP NRC DC | KRW | 44,166 | 8 years and 3 months | |||||||||
Mining rights | Mining right of Bylong mine | AUD | — | — (*) | ||||||||
Development expenditures | Electricity sales information system | KRW | 17,047 | 2 years and 6 months | ||||||||
Usage rights of donated assets and others | Sejong Haengbogdosi sharing charge | KRW | 32,519 | 7 years and 2 months | ||||||||
Dangjin power plant load facility usage right | KRW | 9,444 | 1 year and 6 months | |||||||||
Others | Occupancy and use of public waters | KRW | 93,799 | 17 years and 2 months |
(*) | The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. recognized impairment losses in full during the nine-month period ended September 30, 2019. |
In millions of won and thousands of Australian dollars | ||||||||||||
December 31, 2018 | ||||||||||||
Type | Description | Currency | Amount | Remaining useful lives | ||||||||
Software | ERP system and others | KRW | 783 | 2 years and 2 months ~ 2 years and 4 months | ||||||||
Electricity sales information system | KRW | 6,477 | 4 years | |||||||||
Copyrights, patents rights and other industrial rights | Smart technology verification and standard design project conducting right | KRW | 9,256 | 3 years and 9 months | ||||||||
Contributions to ARP NRC DC | KRW | 46,594 | 9 years | |||||||||
Mining rights | Mining right of Bylong mine | AUD | 401,225 | — (*) | ||||||||
Development expenditures | Electricity sales information system | KRW | 22,337 | 3 years and 3 months | ||||||||
Usage rights of donated assets and others | Sejong Haengbogdosi sharing charge | KRW | 35,923 | 7 years and 11 months | ||||||||
Dangjin power plant load facility usage right | KRW | 14,167 | 2 years and 3 months | |||||||||
Others | Occupancy and use of public waters | KRW | 97,858 | 17 years and 11 months |
(*) | Mining rights are amortized using theunits-of-production method and the amortization has not commenced yet. |
(4) | For the nine-month periods ended September 30, 2019 and 2018, the Group recognized research and development expenses of |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
23. | Trade and Other Payables |
Trade and other payables as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Trade payables | — | 3,411,830 | — | |||||||||||||
Other trade payables | 1,415,656 | 2,696,304 | 1,630,860 | 2,626,876 | ||||||||||||
Accrued expenses | 1,087,902 | 2,132 | 1,127,796 | 1,859 | ||||||||||||
Leasehold deposits received | 1,630 | 1,654 | 1,949 | 1,084 | ||||||||||||
Other deposits received | 161,864 | 70,814 | 169,317 | 72,453 | ||||||||||||
Lease liabilities | 641,543 | 4,352,140 | 57,200 | 226,606 | ||||||||||||
Dividends payable | 6,311 | — | 6,443 | — | ||||||||||||
Others (*) | — | 12,818 | — | 12,818 | ||||||||||||
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7,135,862 | 6,405,395 | 2,941,696 | ||||||||||||||
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(*) | Details of others as of September 30, 2019and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance received from local governments | 5,818 | — | 5,818 | |||||||||||||
Others | — | 7,000 | — | 7,000 | ||||||||||||
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| |||||||||
12,818 | — | 12,818 | ||||||||||||||
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|
24. | Borrowings and Debt Securities |
(1) | Borrowings and debt securities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 860,602 | |||||||
Current portion of long-term borrowings | 167,281 | 312,994 | ||||||
Current portion of debt securities | 8,555,492 | 6,790,778 | ||||||
Less : Current portion of discount on long-term borrowings | (997 | ) | (972 | ) | ||||
Less : Current portion of discount on debt securities | (3,777 | ) | (1,974 | ) | ||||
Add : Current portion of premium on debt securities | — | 20 | ||||||
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| |||||
10,210,876 | 7,961,448 | |||||||
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| |||||
Non-current liabilities | ||||||||
Long-term borrowings | 3,804,979 | 3,280,015 | ||||||
Debt securities | 52,109,623 | 49,905,077 | ||||||
Less : Discount on long-term borrowings | (23,084 | ) | (22,000 | ) | ||||
Less : Discount on debt securities | (91,344 | ) | (89,913 | ) | ||||
Add : Premium on debt securities | 1,814 | — | ||||||
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55,801,988 | 53,073,179 | |||||||
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61,034,627 | ||||||||
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77
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(2) | Repayment schedule of borrowings and debt securities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | ||||||||
September 30, 2019 | ||||||||
Type | Borrowings | Debt securities | ||||||
Less than 1 year | 8,555,492 | |||||||
1~ 5 years | 2,166,654 | 30,202,247 | ||||||
Over 5 years | 1,638,325 | 21,907,376 | ||||||
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| |||||
60,665,115 | ||||||||
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|
In millions of won | ||||||||
December 31, 2018 | ||||||||
Type | Borrowings | Debt securities | ||||||
Less than 1 year | 6,790,778 | |||||||
1~ 5 years | 1,911,226 | 30,175,734 | ||||||
Over 5 years | 1,368,789 | 19,729,343 | ||||||
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56,695,855 | ||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(3) | Short-term borrowings as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||
September 30, 2019 | ||||||||||||||
Type | Creditor | Interest rate (%) | Maturity | Foreign currency | Local currency | |||||||||
Local short-term borrowings | DB Investment and securities and others | 1.61~1.90 | 2019.10.07 ~2019.11.22 | — | ||||||||||
Foreign short-term borrowings | SCNT and others | 4.60~6.50 | 2019.12.03 | USD | 6,725 | 8,078 | ||||||||
Foreign short-term borrowings | BDO Unibank | 5.35 | 2020.12.20 (*) | PHP | 450,000 | 10,418 | ||||||||
Foreign short-term borrowings | Mizuho Bank | 2.86~3.24 | 2019.11.15 ~2019.11.18 | USD | 28,445 | 34,170 | ||||||||
Foreign short-term borrowings | China Construction Bank | 2.94 | 2019.11.15 | USD | 6,124 | 7,357 | ||||||||
Foreign short-term borrowings | Korea development Bank | 2.47 | 2019.11.08 | USD | 10,120 | 12,157 | ||||||||
Foreign short-term borrowings | DBS Bank Ltd. | 2.44 | 2019.11.12 | USD | 25,553 | 30,697 | ||||||||
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(*) | The contractual maturity is 2020 but is classified as short-term borrowing due to intention of early payment in 3 months after borrowing. |
In millions of won and thousands of foreign currencies | ||||||||||||||
December 31, 2018 | ||||||||||||||
Type | Creditor | Interest rate (%) | Maturity | Foreign currency | Local currency | |||||||||
Local short-term borrowings | KTB Investment and securities and others | 2.05~2.51 | 2019.01.04 ~2019.02.20 | — | ||||||||||
Foreign short-term borrowings | SCNT and others | 4.60~6.50 | 2019.12.03 | USD | 8,955 | 10,013 | ||||||||
Foreign short-term borrowings | BDO Unibank | 6.59 | 2020.12.17 (*) | PHP | 450,000 | 9,581 | ||||||||
Local bank overdraft | Nonghyup Bank | 2.59~3.09 | 2019.01.10 ~2019.12.31 | — | 142,773 | |||||||||
Local bank overdraft | Woori Bank | Standard overdraft rate+1.09 | 2019.02.26 | — | 24,235 | |||||||||
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(*) | The contractual maturity is after12-month period but is classified as short-term borrowing due to intention of early payment in 3 months after borrowing. |
79
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
September 30, 2019 | ||||||||||||||||||
Type | Interest rate (%) | Maturity | Foreign currency | Local currency | ||||||||||||||
Local long-term borrowings | ||||||||||||||||||
Korea Development Bank | Others | 0.50 | 2019~2044 | — | ||||||||||||||
Facility | 2.50~4.60 | 2023~2028 | — | 56,220 | ||||||||||||||
Operating funds | 2.59~3.04 | 2020 | — | 35,000 | ||||||||||||||
Operating funds | | 1yr KoFC bond rate +0.95 | | 2020 | — | 14,000 | ||||||||||||
Hana Bank | Commercial Paper | 3M CD+0.13~0.32 | 2021~2024 | — | 1,150,000 | |||||||||||||
Facility | 4.60 | 2028 | — | 12,800 | ||||||||||||||
Facility | 3yr KTB rate-1.25 | 2019~2028 | — | 7,043 | ||||||||||||||
IBK | PF Refinancing | CD+1.25 | 2030 | — | 10,736 | |||||||||||||
Export-Import Bank of Korea | Project loans | 1.50 | 2026 | — | 20,623 | |||||||||||||
Operating funds | 2.21 | 2020 | �� | — | 35,000 | |||||||||||||
Korea Energy Agency | Development of power resources | 3yr KTB rate-2.25 | 2023~2025 | — | 4,652 | |||||||||||||
Facility | 3yr KTB rate-2.25 | 2019~2024 | — | 2,191 | ||||||||||||||
Project loans | — | 2023 | — | 1,197 | ||||||||||||||
Others | KTB rate-2.25 | 2024~2028 | — | 16,109 | ||||||||||||||
Shinhan Bank | Facility | CB rate+1.10 | 2028 | — | 19,200 | |||||||||||||
Others | 3.95 | 2035 | — | 100,339 | ||||||||||||||
Others | | Standard overdraft rate+1.00 | | 2035 | — | 100,339 | ||||||||||||
Kookmin Bank | Facility | 3.16 | 2020 | — | 10,000 | |||||||||||||
Facility | MOR+0.79 | 2023 | — | 25,083 | ||||||||||||||
Others | Facility | 1.75~6.80 | 2026~2036 | — | 366,562 | |||||||||||||
Facility | | CB rate+1.10~1.60 Standard overdraft | | 2023~2036 | — | 99,076 | ||||||||||||
PF Refinancing | 4.10 | 2030 | — | 29,821 | ||||||||||||||
Others | 4.50~7.90 | 2022~2039 | — | 102,348 | ||||||||||||||
|
| |||||||||||||||||
2,222,002 | ||||||||||||||||||
|
| |||||||||||||||||
Foreign long-term borrowings | ||||||||||||||||||
Korea Energy Agency | Project loans | — | 2021~2023 | USD | 8,744 | 10,504 | ||||||||||||
Export-Import Bank of Korea and others | Direct loan | 1M Libor+3.20 | 2036 | USD | 104,511 | 125,549 | ||||||||||||
Direct loan and others | 3M Libor+2.75~3.70 | 2027 | JOD | 152,644 | 258,633 | |||||||||||||
Commercial loan and others | 3M Libor+1.50~2.50 | 2030~2033 | USD | 271,779 | 326,488 | |||||||||||||
PF Loan | 6M Libor+1.70~2.50 | 2032 | USD | 118,684 | 142,575 | |||||||||||||
Others | 3.88 | 2021 | USD | 289,183 | 347,395 | |||||||||||||
SCNT and others | Shareholder’s loan | 6.50~8.00 | 2023 | USD | 43,910 | 52,749 | ||||||||||||
Shareholder’s loan | 8.00 | 2031 | JOD | 4,853 | 8,223 | |||||||||||||
PT PJB | Shareholder’s loan | 12.75 | 2019 | IDR | 5,782,963 | 490 | ||||||||||||
Samsung Life Insurance and others | Syndicated Loan | 3.10 | 2032 | JPY | 4,789,913 | 53,331 | ||||||||||||
Woori Bank and others | Syndicated Loan | JPY 6M Libor+2.00 | 2032 | JPY | 3,225,405 | 35,912 | ||||||||||||
IFC and others | Others | 6M Libor+5.00 | 2031 | PKR | 34,505,340 | 266,381 | ||||||||||||
Federal Financing Bank and others | PF Loan | 2.39~13.00 | 2031~2038 | USD | 101,395 | 121,806 | ||||||||||||
Others | Others | — | 2019 | USD | 186 | 222 | ||||||||||||
|
| |||||||||||||||||
1,750,258 | ||||||||||||||||||
|
| |||||||||||||||||
3,972,260 | ||||||||||||||||||
Less : Discount of long-term borrowings |
| (24,081 | ) | |||||||||||||||
Less : Current portion of long-term borrowings |
| (167,281 | ) | |||||||||||||||
Add : Current portion of discount on long-term borrowings |
| 997 | ||||||||||||||||
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||
Type | Interest rate (%) | Maturity | Foreign currency | Local currency | ||||||||||||||
Local long-term borrowings |
| |||||||||||||||||
Korea Development Bank | Others | 0.50 | 2019~2044 | — | ||||||||||||||
Facility | 2.45~4.60 | 2023~2028 | — | 66,793 | ||||||||||||||
Operating funds | 2.59~3.56 | 2020~2021 | — | 67,000 | ||||||||||||||
Operating funds | 1yr KoFC bond rate +0.95 | 2020 | — | 14,000 | ||||||||||||||
Hana Bank | Commercial Paper | 3M CD+0.19~0.32 | 2021~2023 | — | 950,000 | |||||||||||||
Facility | 4.60 | 2028 | — | 13,781 | ||||||||||||||
Facility | 3yr KTB rate-1.25 | 2019~2028 | — | 8,072 | ||||||||||||||
IBK | PF Refinancing | CD+1.25 | 2030 | — | 22,500 | |||||||||||||
Export-Import Bank of Korea | Project loans | 1.50 | 2026 | — | 22,096 | |||||||||||||
Operating funds | 2.21 | 2020 | — | 35,000 | ||||||||||||||
Korea Energy Agency | Development of power resources | 3yr KTB rate-2.25 | 2023~2025 | — | 5,558 | |||||||||||||
Facility | 3yr KTB rate-2.25 | 2019~2024 | — | 2,589 | ||||||||||||||
Project loans | — | 2023 | — | 1,197 | ||||||||||||||
Others | KTB rate-2.25 | 2024~2028 | — | 17,347 | ||||||||||||||
Shinhan Bank | Collateral borrowing | 2.32 | 2019 | — | 30,000 | |||||||||||||
Facility | CB rate+1.10 | 2028 | — | 20,672 | ||||||||||||||
Others | 3.95 | 2035 | — | 103,851 | ||||||||||||||
Others | | Standard overdraft rate+1.00 | | 2035 | — | 103,851 | ||||||||||||
Kookmin Bank | Facility | 3.16 | 2020 | — | 10,000 | |||||||||||||
Facility | MOR+0.79 | 2023 | — | 30,333 | ||||||||||||||
Others | Facility | 1.75~4.60 | 2026~2036 | — | 168,080 | |||||||||||||
Facility | CB rate+1.10~1.60 | 2023~2036 | — | 52,810 | ||||||||||||||
PF Refinancing | 4.10 | 2030 | — | 62,500 | ||||||||||||||
Others | 4.50~7.90 | 2022~2039 | — | 102,347 | ||||||||||||||
|
| |||||||||||||||||
1,914,531 | ||||||||||||||||||
|
| |||||||||||||||||
Foreign long-term borrowings | ||||||||||||||||||
Korea Energy Agency | Project loans | — | 2021~2023 | USD | 8,744 | 9,776 | ||||||||||||
Export-Import Bank of Korea and others | Direct loan and others | 1M Libor+1.80~3.20 | 2036 | USD | 123,909 | 138,542 | ||||||||||||
Direct loan and others | 3M Libor+2.75~3.70 | 2027 | JOD | 158,524 | 249,783 | |||||||||||||
Commercial loan and others | 3M Libor+1.50~2.50 | 2030~2033 | USD | 277,538 | 310,315 | |||||||||||||
PF Loan | 6M Libor+1.70~2.50 | 2032 | USD | 126,798 | 141,773 | |||||||||||||
Others | 3.88 | 2021 | USD | 278,105 | 310,427 | |||||||||||||
SCNT and others | Shareholder’s loan | 8.00 | 2031 | JOD | 4,853 | 7,647 | ||||||||||||
Shareholder’s loan | 6.50~8.00 | 2023 | USD | 44,680 | 49,956 | |||||||||||||
PT PJB | Shareholder’s loan | 12.75 | 2019 | IDR | 5,569,304 | 428 | ||||||||||||
Samsung Life Insurance and others | Syndicated Loan | 3.10 | 2032 | JPY | 5,286,835 | 53,565 | ||||||||||||
Woori Bank and others | Syndicated Loan | JPY 6M Libor+2.00 | 2032 | JPY | 3,410,381 | 34,553 | ||||||||||||
SMBC and others | Equity Bridge Loan | 1M Libor+0.90 | 2019 | USD | 44,019 | 49,218 | ||||||||||||
IFC and others | Others | 6M Libor+5.00 | 2031 | PKR | 25,900,420 | 206,944 | ||||||||||||
Federal Financing Bank and others | PF Loan | 2.39~13.00 | 2031~2038 | USD | 102,322 | 114,406 | ||||||||||||
Others | Others | — | 2019 | USD | 1,025 | 1,145 | ||||||||||||
|
| |||||||||||||||||
1,678,478 | ||||||||||||||||||
|
| |||||||||||||||||
3,593,009 | ||||||||||||||||||
Less : Discount of long-term borrowings |
| (22,972 | ) | |||||||||||||||
Less : Current portion of long-term borrowings |
| (312,994 | ) | |||||||||||||||
Add : Current portion of discount on long-term borrowings |
| 972 | ||||||||||||||||
|
| |||||||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(5) | Local debt securities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won
Issue date | Maturity | Interest rate (%) | September 30, 2019 | December 31, 2018 | ||||||||||||
Electricity bonds | 2009.12.03~ 2019.09.09 | 2019.10.09~ 2048.10.29 | 1.32~5.45 | 24,480,000 | ||||||||||||
Corporate bonds (*) | 2009.10.16~ 2019.08.13 | 2019.11.04~ 2049.08.13 | 1.29~4.32 | 23,863,577 | 23,223,228 | |||||||||||
|
|
|
| |||||||||||||
50,303,577 | 47,703,228 | |||||||||||||||
Less : Discount on local debt securities |
| (40,406 | ) | (41,247 | ) | |||||||||||
Less : Current portion of local debt securities |
| (6,970,000 | ) | (5,330,000 | ) | |||||||||||
Add : Current portion of discount on local debt securities |
| 1,508 | 1,035 | |||||||||||||
|
|
|
| |||||||||||||
42,333,016 | ||||||||||||||||
|
|
|
|
(*) | Corporate bonds of HeeMang Sunlight Power Co., Ltd. amounting to |
(6) | Foreign debt securities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won and thousands of foreign currencies
September 30, 2019 | ||||||||||||||
Type | Issue date | Maturity | Interest rate (%) | Foreign currency | Local currency | |||||||||
FY-96 | 1996.04.01~1996.12.06 | 2026.12.01~2096.04.01 | 6.00~8.37 | USD 249,074 | ||||||||||
FY-97 | 1997.01.31~1997.08.04 | 2027.02.01~2027.08.01 | 6.75~7.00 | USD 314,717 | 378,069 | |||||||||
FY-04 | 2004.04.23 | 2034.04.23 | 5.13 | USD 286,920 | 344,677 | |||||||||
FY-11 | 2011.07.13 | 2021.07.13 | 4.75 | USD 500,000 | 600,650 | |||||||||
FY-12 | 2012.09.19 | 2022.09.19 | 3.00 | USD 750,000 | 900,975 | |||||||||
FY-13 | 2013.09.25 | 2020.09.25 | 5.75 | AUD 325,000 | 264,063 | |||||||||
FY-14 | 2014.07.30~2014.12.02 | 2019.10.28~2029.07.30 | 2.38~3.57 | USD 900,000 | 1,081,170 | |||||||||
FY-15 | 2015.06.15 | 2025.06.15 | 3.25 | USD 300,000 | 360,390 | |||||||||
FY-16 | 2016.01.21 | 2021.07.21 | 2.50 | USD 300,000 | 360,390 | |||||||||
FY-17 | 2017.04.12~2017.07.25 | 2020.04.12~2027.07.25 | 2.38~3.13 | USD 1,100,000 | 1,321,430 | |||||||||
FY-17 | 2017.10.30 | 2037.10.30 | 1.70 | EUR 40,000 | 52,586 | |||||||||
FY-17 | 2017.11.16 | 2037.11.16 | 2.36 | SEK 450,000 | 55,210 | |||||||||
FY-18 | 2018.01.29~2018.07.25 | 2021.01.29~2023.07.25 | 3.00~3.88 | USD 1,800,000 | 2,162,340 | |||||||||
FY-18 | 2018.03.13 | 2028.03.13 | 3.35 | HKD 1,650,000 | 252,780 | |||||||||
FY-19 | 2019.01.22~2019.06.24 | 2022.01.22~2024.06.24 | 2.50~3.38 | USD 800,000 | 961,040 | |||||||||
FY-19 | 2019.02.27 | 2024.02.27 | 0.13 | CHF 200,000 | 242,466 | |||||||||
FY-19 | 2019.07.19 | 2024.07.19~2028.07.19 | 0.00~0.05 | CHF 300,000 | 363,699 | |||||||||
FY-19 | 2019.07.22 | 2022.07.22 | 2.38 | USD 300,000 | 360,390 | |||||||||
|
| |||||||||||||
10,361,538 | ||||||||||||||
Less : Discount on foreign debt securities | (54,715 | ) | ||||||||||||
Add : Premium on foreign debt securities | 1,814 | |||||||||||||
Less : Current portion of foreign debt securities | (1,585,492 | ) | ||||||||||||
Add : Current portion of discount on foreign debt securities | 2,269 | |||||||||||||
Less : Current portion of premium on foreign debt securities | — | |||||||||||||
|
| |||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
24. | Borrowings and Debt Securities, Continued |
(6) | Foreign debt securities as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won and thousands of foreign currencies |
| |||||||||||||
December 31, 2018 | ||||||||||||||
Type | Issue date | Maturity | Interest rate (%) | Foreign currency | Local currency | |||||||||
FY-96 | 1996.04.01~1996.12.06 | 2026.12.01~2096.04.01 | 6.00~8.37 | USD 249,071 | ||||||||||
FY-97 | 1997.01.31~1997.08.04 | 2027.02.01~2027.08.01 | 6.75~7.00 | USD 314,717 | 351,885 | |||||||||
FY-04 | 2004.04.23 | 2034.04.23 | 5.13 | USD 286,920 | 320,805 | |||||||||
FY-11 | 2011.07.13 | 2021.07.13 | 4.75 | USD 500,000 | 559,050 | |||||||||
FY-12 | 2012.09.19 | 2022.09.19 | 3.00 | USD 750,000 | 838,575 | |||||||||
FY-13 | 2013.09.26~2013.10.23 | 2019.03.26~2019.04.23 | 1.50~1.63 | CHF 400,000 | 454,488 | |||||||||
FY-13 | 2013.09.25 | 2020.09.25 | 5.75 | AUD 325,000 | 256,038 | |||||||||
FY-14 | 2014.02.11~2014.12.02 | 2019.02.11~2029.07.30 | 2.38~3.57 | USD 1,500,000 | 1,677,150 | |||||||||
FY-15 | 2015.06.15 | 2025.06.15 | 3.25 | USD 300,000 | 335,430 | |||||||||
FY-16 | 2016.01.21 | 2021.07.21 | 2.50 | USD 300,000 | 335,430 | |||||||||
FY-17 | 2017.04.12~2017.07.25 | 2020.04.12~2027.07.25 | 2.38~3.13 | USD 1,100,000 | 1,229,910 | |||||||||
FY-17 | 2017.10.30 | 2037.10.30 | 1.70 | EUR 40,000 | 51,166 | |||||||||
FY-17 | 2017.11.16 | 2037.11.16 | 2.36 | SEK 450,000 | 56,061 | |||||||||
FY-18 | 2018.01.29~2018.07.25 | 2021.01.29~2023.07.25 | 3.00~3.88 | USD 1,800,000 | 2,012,580 | |||||||||
FY-18 | 2018.03.13 | 2028.03.13 | 3.35 | HKD 1,650,000 | 235,571 | |||||||||
|
| |||||||||||||
8,992,627 | ||||||||||||||
Less : Discount on foreign debt securities | (50,640 | ) | ||||||||||||
Add : Premium on foreign debt securities | 20 | |||||||||||||
Less : Current portion of foreign debt securities | (1,460,778 | ) | ||||||||||||
Add : Current portion of discount on foreign debt securities | 939 | |||||||||||||
Less : Current portion of premium on foreign debt securities | (20 | ) | ||||||||||||
|
| |||||||||||||
|
|
(7) | Changes in borrowings and debt securities for the nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||
Beginning balance | 54,747,392 | |||||||
Cash flow | 4,077,920 | 6,330,557 | ||||||
Effect of exchange rate fluctuations | 902,866 | 377,225 | ||||||
Others | (2,549 | ) | (6,529 | ) | ||||
|
|
|
| |||||
Ending balance | 61,448,645 | |||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
25. | Lease |
(1) | Right-of-use assets as of September 30, 2019 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | (13,164 | ) | 326,519 | ||||||||||||
Buildings | 48,544 | — | (14,568 | ) | 33,976 | |||||||||||
Structures | 24,261 | — | (1,072 | ) | 23,189 | |||||||||||
Ships | 4,113,754 | — | (317,547 | ) | 3,796,207 | |||||||||||
Vehicles | 17,076 | — | (4,727 | ) | 12,349 | |||||||||||
Others (*) | 2,643,967 | — | (2,260,908 | ) | 383,059 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
— | (2,611,986 | ) | 4,575,299 | |||||||||||||
|
|
|
|
|
|
|
|
(*) | Including power purchase agreements (“PPA”) with GS EPS and two other providers. |
(2) | Changes inright-of-use assets for the nine-month period ended September 30, 2019 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
Beginning balance | Changes in accounting policies (*) | Increase | Depreciation | Ending balance | ||||||||||||||||
Land | 325,748 | 13,935 | (13,164 | ) | 326,519 | |||||||||||||||
Buildings | — | 37,024 | 11,520 | (14,568 | ) | 33,976 | ||||||||||||||
Structures | — | 20,840 | 3,421 | (1,072 | ) | 23,189 | ||||||||||||||
Ships | — | 3,986,947 | 126,807 | (317,547 | ) | 3,796,207 | ||||||||||||||
Vehicles | — | 10,344 | 6,732 | (4,727 | ) | 12,349 | ||||||||||||||
Others | — | 403,344 | 47,815 | (68,100 | ) | 383,059 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
4,784,247 | 210,230 | (419,178 | ) | 4,575,299 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*) | Including transferred amount of |
(3) | Lease liabilities as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Minimum lease payment | Present value of minimum lease payment | Minimum lease payment | Present value of minimum lease payment | |||||||||||||
Less than 1 year | 641,543 | 87,709 | 57,200 | |||||||||||||
1 ~ 5 years | 2,244,973 | 2,028,352 | 228,783 | 170,676 | ||||||||||||
More than 5 years | 2,798,501 | 2,323,788 | 65,250 | 55,930 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
4,993,683 | 381,742 | 283,806 | ||||||||||||||
|
|
|
|
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
25. | Lease, Continued |
(4) | Changes in lease liabilities for the nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||
Beginning balance | Changes in accounting policies | Increase | Decrease (*1) | Interest expenses | Others (*2) | Ending balance | ||||||||||||||||||||||
Leaseliabilities | 4,584,189 | 208,698 | (470,080 | ) | 64,199 | 322,871 | 4,993,683 |
(*1) | The total cash outflow related to the lease contract, including cash outflows due to short-term leases and leases oflow-value asset leases, amounts to |
(*2) | Including translation effect of foreign currency lease liabilities and others. |
In millions of won | September 30, 2018 | |||||||||||||||
Beginning balance | Acquisition | Decrease | Ending balance | |||||||||||||
Finance lease liabilities | — | (117,572 | ) | 300,688 |
(5) | Details of expense relating to lease contracts as lessee for the three and nine-month periods ended September 30, 2019 are as follows: |
In millions of won | September 30, 2019 | |||||||
Three-month period ended | Nine-month period ended | |||||||
Depreciation ofright-of-use assets | 419,178 | |||||||
Interest expenses of lease liabilities | 21,994 | 64,199 | ||||||
Leases expenses for short-term leases | 6,183 | 13,607 | ||||||
Leases expenses for leases oflow-value assets | 352 | 899 | ||||||
Variable lease payments | (4,362 | ) | (13,004 | ) | ||||
|
|
|
| |||||
484,879 | ||||||||
|
|
|
|
(6) | Minimum lease payment and contingent rent payment recognized as an expense as a lessee for the three and nine-month periods ended September 30, 2018 are as follows: |
In millions of won | September 30, 2018 | |||||||
Three-month period ended | Nine-month period ended | |||||||
Minimum lease payment | 87,100 | |||||||
Contingent rent payment | (4,759 | ) | (14,113 | ) | ||||
|
|
|
| |||||
72,987 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
26. | Employment Benefits |
(1) | Employment benefit obligations as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Net defined benefit obligations | 1,638,785 | |||||||
Other long-term employee benefit obligations | 6,092 | 6,284 | ||||||
|
|
|
| |||||
1,645,069 | ||||||||
|
|
|
|
(2) | Principal assumptions on actuarial valuation as of September 30, 2019 and December 31, 2018 are as follows: |
September 30, 2019 | December 31, 2018 | |||
Discount rate | 1.72%~1.82% | 2.24%~2.90% | ||
Weighted future salary and benefit levels | 4.86% | 4.88% | ||
Weighted average duration | 13.74 years | 13.71 years |
(3) | Details of expense relating to defined benefit plans for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Current service cost | 307,849 | 92,130 | 269,964 | |||||||||||||
Interest cost | 21,277 | 61,576 | 22,348 | 64,916 | ||||||||||||
Expected return on plan assets | (10,305 | ) | (30,724 | ) | (10,387 | ) | (31,178 | ) | ||||||||
Loss from settlement | (132 | ) | (609 | ) | (439 | ) | (716 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
338,092 | 103,652 | 302,986 | ||||||||||||||
|
|
|
|
|
|
|
|
Expenses as described above are recognized in those items below in the financial statements.
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Cost of sales | 251,495 | 77,198 | 225,124 | |||||||||||||
Selling and administrative expenses | 15,038 | 43,260 | 12,924 | 38,047 | ||||||||||||
Others(Construction-in-progress and others) | 14,851 | 43,337 | 13,530 | 39,815 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
338,092 | 103,652 | 302,986 | ||||||||||||||
|
|
|
|
|
|
|
|
In addition, for the nine-month periods ended September 30, 2019and 2018, employee benefit obligations expenses ofW54,583 million andW48,540 million, respectively, are recognized as cost of sales; andW11,167 million andW9,384 million, respectively, are recognized as selling and administrative expenses; andW10,617 million andW10,191 million, respectively, are recognized asconstruction-in-progress and others, relates to the Group’s defined contribution plans.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
26. | Employment Benefits, Continued |
(4) | Details of defined benefit obligations as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Present value of defined benefit obligation from funded plans | 3,414,116 | |||||||
Fair value of plan assets | (1,780,143 | ) | (1,775,331 | ) | ||||
|
|
|
| |||||
Net liabilities incurred from defined benefit plans | 1,638,785 | |||||||
|
|
|
|
(5) | Changes in the present value of defined benefit obligations for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 2,951,842 | |||||||
Current service cost | 307,849 | 369,899 | ||||||
Interest cost (*) | 61,576 | 87,687 | ||||||
Remeasurement component | 384,314 | 154,939 | ||||||
Loss from settlement | (609 | ) | (767 | ) | ||||
Actual payments | (75,468 | ) | (149,454 | ) | ||||
Others | 838 | (30 | ) | |||||
|
|
|
| |||||
Ending balance | 3,414,116 | |||||||
|
|
|
|
(*) | Corporate bond (AAA rated) yield atyear-end is applied to measure the interest cost on employee benefit obligations. |
(6) | Changes in the fair value of plan assets for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 1,475,641 | |||||||
Expected return | 30,724 | 42,135 | ||||||
Remeasurement component | (2,730 | ) | (12,308 | ) | ||||
Contributions by the employers | 9,564 | 330,064 | ||||||
Actual payments | (32,746 | ) | (60,201 | ) | ||||
|
|
|
| |||||
Ending balance | 1,775,331 | |||||||
|
|
|
|
In addition, losses on accumulated remeasurement component amounted toW379,455 million andW219,381 million have been recognized as other comprehensive income or loss for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
26. | Employment Benefits, Continued |
(7) | Details of the fair value of plan assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Equity instruments | 96,823 | |||||||
Debt instruments | 642,760 | 510,184 | ||||||
Bank deposit | 241,987 | 275,518 | ||||||
Others | 891,498 | 892,806 | ||||||
|
|
|
| |||||
1,775,331 | ||||||||
|
|
|
|
For the nine-month period ended September 30, 2019 and for the year ended December 31, 2018, actual returns on plan assets amounted toW27,994 million andW29,827 million, respectively.
(8) | Remeasurement component recognized in other comprehensive income (loss) for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Actuarial gain from changes in financial assumptions | 186,428 | |||||||
Experience adjustments, etc. | 129,454 | (31,489 | ) | |||||
Expected return | 2,730 | 12,308 | ||||||
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167,247 | ||||||||
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Remeasurement component recognized as other comprehensive income or loss is recorded in retained earnings.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
27. | Provisions |
(1) | Provisions as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Employment benefits | ||||||||||||||||
Provisions for employment benefits | — | 976,347 | — | |||||||||||||
Litigation | ||||||||||||||||
Litigation provisions | 18,093 | 51,559 | 40,157 | 37,636 | ||||||||||||
Decommissioning cost | ||||||||||||||||
Nuclear plants | — | 13,918,043 | — | 13,388,134 | ||||||||||||
Spent fuel | 469,076 | 886,205 | — | 1,291,354 | ||||||||||||
Radioactive waste | 65,608 | 1,638,418 | 4,310 | 1,680,698 | ||||||||||||
PCBs | — | 142,925 | — | 147,668 | ||||||||||||
Other recovery provisions | — | 11,572 | — | 10,477 | ||||||||||||
Others | ||||||||||||||||
Power plant regional support program | 152,694 | — | 137,668 | — | ||||||||||||
Transmission regional support program | 125,724 | — | 151,698 | — | ||||||||||||
Provisions for tax | 26 | — | 6,845 | — | ||||||||||||
Provisions for financial guarantee | 43 | 85,947 | 1,320 | 14,266 | ||||||||||||
Provisions for RPS | 85,319 | — | 93,919 | — | ||||||||||||
Provisions for greenhouse gas emissions obligations | — | — | 136,187 | — | ||||||||||||
Others | 44,883 | 15,039 | 46,347 | 15,515 | ||||||||||||
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16,749,708 | 1,594,798 | 16,585,748 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
27. | Provisions, Continued |
(2) | Changes in provisions for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||
Beginning balance | Increase in provision | Payment | Reversal | Others | Ending balance | |||||||||||||||||||
Employment benefits | ||||||||||||||||||||||||
Provisions for employment benefits | 741,523 | (689,413 | ) | (8,860 | ) | 284 | 1,019,881 | |||||||||||||||||
Litigation | ||||||||||||||||||||||||
Litigation provisions | 77,793 | 20,358 | (8,996 | ) | (19,503 | ) | — | 69,652 | ||||||||||||||||
Decommissioning cost | ||||||||||||||||||||||||
Nuclear plants | 13,388,134 | 554,983 | (25,074 | ) | — | — | 13,918,043 | |||||||||||||||||
Spent fuel | 1,291,354 | 320,920 | (256,993 | ) | — | — | 1,355,281 | |||||||||||||||||
Radioactive waste | 1,685,008 | 25,496 | (6,787 | ) | — | 309 | 1,704,026 | |||||||||||||||||
PCBs | 147,668 | 2,415 | (7,158 | ) | — | — | 142,925 | |||||||||||||||||
Other recovery provisions | 10,477 | 453 | — | — | 642 | 11,572 | ||||||||||||||||||
Others | ||||||||||||||||||||||||
Power plant regional support program | 137,668 | 41,341 | (35,829 | ) | — | 9,514 | 152,694 | |||||||||||||||||
Transmission regional support program | 151,698 | 111,136 | (137,110 | ) | — | — | 125,724 | |||||||||||||||||
Provisions for tax | 6,845 | — | — | (6,821 | ) | 2 | 26 | |||||||||||||||||
Provisions for financial guarantee | 15,586 | 83,685 | (11,527 | ) | (1,677 | ) | (77 | ) | 85,990 | |||||||||||||||
Provisions for RPS | 93,919 | 211,238 | (219,838 | ) | — | — | 85,319 | |||||||||||||||||
Provisions for greenhouse gas emissions obligations | 136,187 | 21,624 | (139,936 | ) | (17,875 | ) | — | — | ||||||||||||||||
Others | 61,862 | 2,579 | (3,712 | ) | (1,659 | ) | 852 | 59,922 | ||||||||||||||||
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2,137,751 | (1,542,373 | ) | (56,395 | ) | 11,526 | 18,731,055 | ||||||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
27. | Provisions, Continued |
(2) | Changes in provisions for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows, continued: |
In millions of won | December 31, 2018 | |||||||||||||||||||||||
Beginning balance | Increase in provision | Payment | Reversal | Others | Ending balance | |||||||||||||||||||
Employment benefits | ||||||||||||||||||||||||
Provisions for employment benefits | 912,440 | (843,281 | ) | (6,599 | ) | — | 976,347 | |||||||||||||||||
Litigation | ||||||||||||||||||||||||
Litigation provisions (*) | 73,576 | 234,517 | (216,187 | ) | (13,847 | ) | (266 | ) | 77,793 | |||||||||||||||
Decommissioning cost | ||||||||||||||||||||||||
Nuclear plants | 13,007,228 | 411,316 | (30,410 | ) | — | — | 13,388,134 | |||||||||||||||||
Spent fuel | 1,339,046 | 435,007 | (482,699 | ) | — | — | 1,291,354 | |||||||||||||||||
Radioactive waste | 1,638,371 | 112,815 | (66,178 | ) | — | — | 1,685,008 | |||||||||||||||||
PCBs | 180,087 | 4,600 | (13,758 | ) | (23,261 | ) | — | 147,668 | ||||||||||||||||
Other recovery provisions | 6,659 | 2,125 | — | — | 1,693 | 10,477 | ||||||||||||||||||
Others | ||||||||||||||||||||||||
Power plant regional support program | 153,756 | 46,366 | (71,978 | ) | — | 9,524 | 137,668 | |||||||||||||||||
Transmission regional support program | 243,365 | 141,661 | (233,328 | ) | — | — | 151,698 | |||||||||||||||||
Provisions for tax | 61 | 6,821 | — | — | (37 | ) | 6,845 | |||||||||||||||||
Provisions for financial guarantee | 23,475 | 1,179 | (67 | ) | (8,432 | ) | (569 | ) | 15,586 | |||||||||||||||
Provisions for RPS | 271,624 | 297,802 | (475,507 | ) | — | — | 93,919 | |||||||||||||||||
Provisions for greenhouse gas emissions obligations | 414,252 | 131,860 | (350,356 | ) | (59,569 | ) | — | 136,187 | ||||||||||||||||
Others | 96,925 | 44,732 | (82,632 | ) | (745 | ) | 3,582 | 61,862 | ||||||||||||||||
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2,783,241 | (2,866,381 | ) | (112,453 | ) | 13,927 | 18,180,546 | ||||||||||||||||||
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(*) | As described in Note 50.(1), the Group believes that the possibility of economic benefit outflow is probable on the request for additional construction costs of Hyundai E&C, GS Engineering & Construction Corp. and Hansol SeenTec Co., Ltd. For this reason, the Group recognized |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
28. | Government Grants |
(1) | Government grants as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Land | (21,968 | ) | ||||||
Buildings | (62,073 | ) | (63,189 | ) | ||||
Structures | (187,100 | ) | (190,854 | ) | ||||
Machinery | (160,852 | ) | (173,242 | ) | ||||
Vehicles | (2,763 | ) | (4,220 | ) | ||||
Equipment | (270 | ) | (418 | ) | ||||
Tools | (470 | ) | (675 | ) | ||||
Construction-in-progress | (55,766 | ) | (54,740 | ) | ||||
Finance lease assets | — | (26 | ) | |||||
Investment properties | (14 | ) | (50 | ) | ||||
Software | (263 | ) | (420 | ) | ||||
Development expenditures | (1,485 | ) | (2,110 | ) | ||||
Intangible assets under development | (11,039 | ) | (10,564 | ) | ||||
Other intangible assets | (80 | ) | — | |||||
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(522,476 | ) | |||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
28. | Government Grants, Continued |
(2) | Changes in government grants for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||
Beginning balance | Receipt | Acquisition | Items offset with depreciation expense and others | Disposal | Others | Ending balance | ||||||||||||||||||||||
Cash | (11,214 | ) | — | — | — | 11,214 | — | |||||||||||||||||||||
Land | (21,968 | ) | — | — | — | — | — | (21,968 | ) | |||||||||||||||||||
Buildings | (63,189 | ) | — | — | 4,313 | — | (3,197 | ) | (62,073 | ) | ||||||||||||||||||
Structures | (190,854 | ) | — | — | 7,016 | 1,478 | (4,740 | ) | (187,100 | ) | ||||||||||||||||||
Machinery | (173,242 | ) | — | — | 12,904 | 1,059 | (1,573 | ) | (160,852 | ) | ||||||||||||||||||
Vehicles | (4,220 | ) | — | — | 1,621 | — | (164 | ) | (2,763 | ) | ||||||||||||||||||
Equipment | (418 | ) | — | — | 202 | — | (54 | ) | (270 | ) | ||||||||||||||||||
Tools | (675 | ) | — | — | 212 | — | (7 | ) | (470 | ) | ||||||||||||||||||
Construction-in-progress | (54,740 | ) | — | 8,938 | — | — | (9,964 | ) | (55,766 | ) | ||||||||||||||||||
Finance lease assets | (26 | ) | — | — | — | — | 26 | — | ||||||||||||||||||||
Investment properties | (50 | ) | — | — | — | — | 36 | (14 | ) | |||||||||||||||||||
Software | (420 | ) | — | — | 168 | — | (11 | ) | (263 | ) | ||||||||||||||||||
Development expenditures | (2,110 | ) | — | — | 625 | — | — | (1,485 | ) | |||||||||||||||||||
Intangible assets under development | (10,564 | ) | — | — | — | — | (475 | ) | (11,039 | ) | ||||||||||||||||||
Other intangible assets | — | — | — | 1 | — | (81 | ) | (80 | ) | |||||||||||||||||||
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(11,214 | ) | 8,938 | 27,062 | 2,537 | (8,990 | ) | (504,143 | ) | ||||||||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||||||||||
Beginning balance | Receipt | Acquisition | Items offset with depreciation expense and others | Disposal | Others | Ending balance | ||||||||||||||||||||||
Cash | (30,416 | ) | — | — | — | 30,416 | — | |||||||||||||||||||||
Land | (21,968 | ) | — | — | — | — | — | (21,968 | ) | |||||||||||||||||||
Buildings | (63,539 | ) | — | — | 6,836 | 31 | (6,517 | ) | (63,189 | ) | ||||||||||||||||||
Structures | (196,414 | ) | — | — | 10,292 | 3,270 | (8,002 | ) | (190,854 | ) | ||||||||||||||||||
Machinery | (183,188 | ) | — | — | 18,099 | 823 | (8,976 | ) | (173,242 | ) | ||||||||||||||||||
Vehicles | (6,322 | ) | — | — | 2,146 | — | (44 | ) | (4,220 | ) | ||||||||||||||||||
Equipment | (761 | ) | — | — | 365 | — | (22 | ) | (418 | ) | ||||||||||||||||||
Tools | (1,027 | ) | — | — | 432 | — | (80 | ) | (675 | ) | ||||||||||||||||||
Construction-in-progress | (49,084 | ) | — | 18,239 | — | — | (23,895 | ) | (54,740 | ) | ||||||||||||||||||
Finance lease assets | (27 | ) | — | — | 1 | — | — | (26 | ) | |||||||||||||||||||
Investment properties | (83 | ) | — | — | 1 | — | 32 | (50 | ) | |||||||||||||||||||
Software | (486 | ) | — | — | 254 | — | (188 | ) | (420 | ) | ||||||||||||||||||
Development expenditures | (3,702 | ) | — | — | 1,591 | — | 1 | (2,110 | ) | |||||||||||||||||||
Intangible assets under development | (10,540 | ) | — | — | — | — | (24 | ) | (10,564 | ) | ||||||||||||||||||
Usage rights of donated assets and others | (11 | ) | — | — | 11 | — | — | — | ||||||||||||||||||||
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(30,416 | ) | 18,239 | 40,028 | 4,124 | (17,299 | ) | (522,476 | ) | ||||||||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
29. | Deferred Revenues |
Deferred revenue related to the Group’s construction contracts for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows which included in current andnon-currentnon-financial liabilities in the consolidated statements of financial position:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 8,325,181 | |||||||
Increase during the current period | 820,062 | 875,930 | ||||||
Recognized as revenue during the current period | (438,440 | ) | (594,548 | ) | ||||
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|
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| |||||
Ending balance | 8,606,563 | |||||||
|
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|
|
30. | Non-financial Liabilities |
Non-financial liabilities as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance received | 157,095 | 3,724,238 | 80,937 | |||||||||||||
Unearned revenue | 19,498 | 4,170 | 63,038 | 4,690 | ||||||||||||
Deferred revenue | 579,493 | 8,408,692 | 556,072 | 8,050,491 | ||||||||||||
Withholdings | 405,553 | 9,908 | 172,454 | 10,856 | ||||||||||||
Others | 1,369,408 | 13,321 | 1,058,239 | 13,059 | ||||||||||||
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| |||||||||
8,593,186 | 5,574,041 | 8,160,033 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
31. | Contributed Capital |
(1) | Details of shares issued as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won except share information | September 30, 2019 | |||||||||||||||||||||||
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 | 1,640,385 | 1,569,435 | 3,209,820 |
(*) | Korea Development Bank’s interest of |
In millions of won except share information | December 31, 2018 | |||||||||||||||||||||||
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 | 1,640,385 | 1,569,435 | 3,209,820 |
(*) | Korea Development Bank’s interest of |
(2) | Details in number of issued capital stock for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
Number of shares | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 641,964,077 | 641,964,077 | ||||||
|
|
|
| |||||
Ending balance | 641,964,077 | 641,964,077 | ||||||
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|
|
(3) | Details of share premium as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Share premium | 843,758 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
32. | Retained Earnings and Dividends Paid |
(1) | Details of retained earnings as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Legal reserve (*) | 1,604,910 | |||||||
Voluntary reserves | 34,785,425 | 35,906,267 | ||||||
Retained earnings before appropriations | 13,889,386 | 14,007,942 | ||||||
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|
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| |||||
Retained earnings | 51,519,119 | |||||||
|
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|
|
(*) | 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 topaid-in capital or offset against accumulated deficit by the resolution of the shareholders. |
(2) | Details of voluntary reserves as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Reserve for investment on social overhead capital | 5,277,449 | |||||||
Reserve for research and human development (*) | 330,000 | 330,000 | ||||||
Reserve for business expansion | 28,967,976 | 30,088,818 | ||||||
Reserve for equalizing dividends | 210,000 | 210,000 | ||||||
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| |||||
35,906,267 | ||||||||
|
|
|
|
(*) | 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 nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 53,370,558 | |||||||
Effect of change in accounting policy | — | 71,928 | ||||||
Net profit (loss) for the period attributed to owner of the Company | (1,012,555 | ) | (1,314,567 | ) | ||||
Changes in equity method retained earnings | (487 | ) | (1,153 | ) | ||||
Remeasurement of defined benefit liability, net of tax | (225,516 | ) | (100,495 | ) | ||||
Transfer of gain (loss) on valuation of financial assets through other comprehensive income | (840 | ) | — | |||||
Dividends paid | — | (507,152 | ) | |||||
|
|
|
| |||||
Ending balance | 51,519,119 | |||||||
|
|
|
|
(4) | Dividends paid for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
Number of shares issued | Number of treasury stocks | Number of shares eligible for dividends | Dividends paid per share (in won) | Dividends paid | ||||||||||||||||
Common shares | 641,964,077 | — | 641,964,077 | — |
In millions of won | December 31, 2018 | |||||||||||||||||||
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 | 507,152 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
32. | Retained Earnings and Dividends Paid, Continued |
(5) | Changes in retained earnings of investments in associates and joint ventures for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | 5,122 | |||||||
Changes | (487 | ) | (1,153 | ) | ||||
|
|
|
| |||||
Ending balance | 3,969 | |||||||
|
|
|
|
(6) | Changes in remeasurement components related to defined benefit liability for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Beginning balance | (43,513 | ) | ||||||
Changes | (373,678 | ) | (154,198 | ) | ||||
Income tax effect | 148,162 | 53,703 | ||||||
Transfer to reserve for business expansion | 65,442 | (75,373 | ) | |||||
|
|
|
| |||||
Ending balance | (219,381 | ) | ||||||
|
|
|
|
33. | Hybrid Bonds |
Hybrid bonds classified as equity(non-controlling interest) as of September 30, 2019and December 31, 2018are as follows:
In millions of won | ||||||||||||||||||||||
Issuer | Hybrid bond | Issued date | Maturity | Yield (%) | September 30, 2019 | December 31, 2018 | ||||||||||||||||
Korea South-East Power Co., Ltd. | 1st hybrid bond | 2012.12.07 | 2042.12.06 | 4.38 | 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 | ) | ||||||||||||||||||
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| |||||||||||||||||||
398,910 | ||||||||||||||||||||||
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|
|
|
Although these instruments have contractual maturity dates, the contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Group decides not to pay dividends on common shares, they are not required to pay interest on the hybrid bonds.
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.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
34. | Other Components of Equity |
(1) | Other components of equity as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Other capital surplus | 1,234,825 | |||||||
Accumulated other comprehensive loss | (224,360 | ) | (358,570 | ) | ||||
Other equity | 13,294,973 | 13,294,973 | ||||||
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| |||||
14,171,228 | ||||||||
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|
(2) | Changes in other capital surplus for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gain on disposal of treasury stocks | Others | Subtotal | Gain on disposal of treasury stocks | Others | Subtotal | |||||||||||||||||||
Beginning balance | 847,301 | 1,234,825 | 387,524 | 846,269 | 1,233,793 | |||||||||||||||||||
Issuance of share capital of subsidiary and others | — | — | — | — | 1,032 | 1,032 | ||||||||||||||||||
Others | — | (8,247 | ) | (8,247 | ) | — | — | — | ||||||||||||||||
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|
|
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|
|
| |||||||||||||
Ending balance | 839,054 | 1,226,578 | 387,524 | 847,301 | 1,234,825 | |||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
34. | Other Components of Equity, Continued |
(3) | Changes in accumulated other comprehensive income (loss) for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | |||||||||||||||||||
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 | Reserve for loss on valuation of derivatives | Total | ||||||||||||||||
Beginning balance | 123,553 | (350,245 | ) | (50,170 | ) | (358,570 | ) | |||||||||||||
Changes in the unrealized fair value of financial assets at FVOCI, net of tax | (8,057 | ) | — | — | — | (8,057 | ) | |||||||||||||
Shares in other comprehensive income of associates and joint ventures, net of tax | — | 41,247 | — | — | 41,247 | |||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | 92,244 | — | 92,244 | |||||||||||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | — | — | — | 8,775 | 8,775 | |||||||||||||||
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| |||||||||||
Ending balance | 164,800 | (258,001 | ) | (41,395 | ) | (224,360 | ) | |||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
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 | Reserve for loss on valuation of derivatives | Total | ||||||||||||||||
Beginning balance | 66,464 | (318,159 | ) | (49,030 | ) | (271,457 | ) | |||||||||||||
Effect of change in accounting policy | (76,851 | ) | — | — | — | (76,851 | ) | |||||||||||||
Changes in the unrealized fair value of financial assets at FVOCI, net of tax | (34,125 | ) | — | — | — | (34,125 | ) | |||||||||||||
Shares in other comprehensive income of associates and joint ventures, net of tax | — | 57,089 | — | — | 57,089 | |||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | (32,086 | ) | — | (32,086 | ) | |||||||||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | — | — | — | (1,140 | ) | (1,140 | ) | |||||||||||||
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Ending balance | 123,553 | (350,245 | ) | (50,170 | ) | (358,570 | ) | |||||||||||||
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(4) | Other equity as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Statutory revaluation reserve | 13,295,098 | |||||||
Changes in other equity | (125 | ) | (125 | ) | ||||
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| |||||
13,294,973 | ||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
35. | Sales |
Details of sales for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||||||||||||||
Domestic | Overseas | Total | ||||||||||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||||||
[Type of goods and services] |
| |||||||||||||||||||||||
Sales of goods | 42,496,430 | 70,287 | 213,078 | 15,403,628 | 42,709,508 | |||||||||||||||||||
Electricity | 15,213,418 | 42,035,565 | — | — | 15,213,418 | 42,035,565 | ||||||||||||||||||
Heat supply | 5,994 | 160,968 | — | — | 5,994 | 160,968 | ||||||||||||||||||
Others | 113,929 | 299,897 | 70,287 | 213,078 | 184,216 | 512,975 | ||||||||||||||||||
Sales of service | 46,611 | 137,026 | 44,563 | 134,565 | 91,174 | 271,591 | ||||||||||||||||||
Sales of construction services | 28,080 | 77,108 | 240,329 | 735,016 | 268,409 | 812,124 | ||||||||||||||||||
Revenue related to transfer of assets from customers | 149,074 | 438,440 | — | — | 149,074 | 438,440 | ||||||||||||||||||
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43,149,004 | 355,179 | 1,082,659 | 15,912,285 | 44,231,663 | ||||||||||||||||||||
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[Timing of revenue recognition] |
| |||||||||||||||||||||||
Performance obligations satisfied at a point in time | 42,496,430 | 70,287 | 213,078 | 15,403,628 | 42,709,508 | |||||||||||||||||||
Performance obligations satisfied over time | 223,765 | 652,574 | 284,892 | 869,581 | 508,657 | 1,522,155 | ||||||||||||||||||
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43,149,004 | 355,179 | 1,082,659 | 15,912,285 | 44,231,663 | ||||||||||||||||||||
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In millions of won | September 30, 2018 | |||||||||||||||||||||||
Domestic | Overseas | Total | ||||||||||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||||||||
[Type of goods and services] |
| |||||||||||||||||||||||
Sales of goods | 43,220,255 | 99,656 | 286,890 | 15,794,339 | 43,507,145 | |||||||||||||||||||
Electricity | 15,506,010 | 42,637,084 | — | — | 15,506,010 | 42,637,084 | ||||||||||||||||||
Heat supply | 5,105 | 147,723 | — | — | 5,105 | 147,723 | ||||||||||||||||||
Others | 183,568 | 435,448 | 99,656 | 286,890 | 283,224 | 722,338 | ||||||||||||||||||
Sales of service | 44,685 | 114,805 | 71,845 | 149,007 | 116,530 | 263,812 | ||||||||||||||||||
Sales of construction services | 22,377 | 77,035 | 334,690 | 1,154,626 | 357,067 | 1,231,661 | ||||||||||||||||||
Revenue related to transfer of assets from customers | 141,908 | 450,429 | — | — | 141,908 | 450,429 | ||||||||||||||||||
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43,862,524 | 506,191 | 1,590,523 | 16,409,844 | 45,453,047 | ||||||||||||||||||||
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[Timing of revenue recognition] |
| |||||||||||||||||||||||
Performance obligations satisfied at a point in time | 43,220,255 | 99,656 | 286,890 | 15,794,339 | 43,507,145 | |||||||||||||||||||
Performance obligations satisfied over time | 208,970 | 642,269 | 406,535 | 1,303,633 | 615,505 | 1,945,902 | ||||||||||||||||||
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43,862,524 | 506,191 | 1,590,523 | 16,409,844 | 45,453,047 | ||||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
36. | Selling and Administrative Expenses |
Selling and administrative expenses for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||
Salaries | 582,369 | 182,114 | 558,259 | |||||||||||||
Retirement benefit expense | 17,626 | 54,427 | 16,072 | 47,431 | ||||||||||||
Welfare and benefit expense | 28,563 | 87,631 | 41,893 | 97,493 | ||||||||||||
Insurance expense | 3,156 | 9,779 | 2,443 | 9,884 | ||||||||||||
Depreciation | 53,943 | 169,986 | 53,040 | 159,600 | ||||||||||||
Amortization of intangible assets | 16,377 | 56,775 | 12,409 | 38,593 | ||||||||||||
Bad debt expense (reversal) | (31,141 | ) | (15,417 | ) | 8,673 | 26,740 | ||||||||||
Commission | 153,831 | 495,682 | 164,670 | 510,765 | ||||||||||||
Advertising expense | 9,913 | 23,690 | 6,747 | 20,095 | ||||||||||||
Training expense | 1,746 | 5,027 | 1,500 | 5,112 | ||||||||||||
Vehicle maintenance expense | 2,548 | 7,005 | 2,438 | 7,476 | ||||||||||||
Publishing expense | 628 | 2,099 | 482 | 2,009 | ||||||||||||
Business development expense | 690 | 2,183 | 653 | 2,193 | ||||||||||||
Rent expense | 17,566 | 31,725 | 14,464 | 31,812 | ||||||||||||
Telecommunication expense | 2,097 | 6,454 | 5,698 | 17,434 | ||||||||||||
Transportation expense | 206 | 659 | 203 | 428 | ||||||||||||
Taxes and dues | 6,032 | 47,108 | 2,024 | 36,267 | ||||||||||||
Expendable supplies expense | 1,313 | 4,520 | 1,697 | 4,338 | ||||||||||||
Water, light and heating expense | 3,475 | 10,043 | 3,512 | 10,349 | ||||||||||||
Repairs and maintenance expense | 14,940 | 44,057 | 6,508 | 38,372 | ||||||||||||
Ordinary development expense | 58,353 | 136,936 | 49,125 | 133,729 | ||||||||||||
Travel expense | 3,408 | 11,954 | 3,534 | 10,497 | ||||||||||||
Clothing expense | 1,061 | 3,197 | 1,647 | 4,419 | ||||||||||||
Survey and analysis expense | 207 | 636 | 177 | 513 | ||||||||||||
Membership fee | 119 | 865 | 181 | 851 | ||||||||||||
Others | 46,373 | 108,009 | 30,452 | 91,848 | ||||||||||||
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| |||||||||
1,887,399 | 612,356 | 1,866,507 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
37. | OtherNon-operating Income and Expense |
(1) | Othernon-operating income for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Reversal of other provisions | 3,517 | 649 | 2,126 | |||||||||||||
Gains on government grants | 62 | 201 | 66 | 211 | ||||||||||||
Gains on assets contributed | 20 | 2,791 | 3,735 | 4,153 | ||||||||||||
Gains on liabilities exempted | 119 | 838 | 164 | 7,185 | ||||||||||||
Compensation and reparations revenue | 80,860 | 119,524 | 19,997 | 62,751 | ||||||||||||
Revenue from research contracts | 1,952 | 4,529 | 2,667 | 5,511 | ||||||||||||
Rental income | 47,150 | 141,201 | 45,199 | 138,537 | ||||||||||||
Others | 15,026 | 45,076 | 8,797 | 39,449 | ||||||||||||
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|
| |||||||||
317,677 | 81,274 | 259,923 | ||||||||||||||
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|
|
(2) | Othernon-operating expense for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Compensation and reparations expenses | 96 | 2,329 | 21,617 | |||||||||||||
Accretion expenses of other provisions | 2,601 | 2,984 | 64 | 254 | ||||||||||||
Depreciation expenses on investment properties | 380 | 4,671 | 209 | 717 | ||||||||||||
Depreciation expenses on idle assets | 1,634 | 4,906 | 1,637 | 4,911 | ||||||||||||
Other bad debt expense | 1,585 | 7,281 | (7,976 | ) | 3,477 | |||||||||||
Donations | 14,239 | 41,802 | 14,480 | 33,438 | ||||||||||||
Others | 7,108 | 16,964 | 10,169 | 54,020 | ||||||||||||
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|
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| |||||||||
78,704 | 20,912 | 118,434 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
38. | Other Gains (Losses) |
Composition of other gains (losses) for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | |||||||||||||
Other gains | ||||||||||||||||
Gains on disposal of property, plant and equipment | 35,765 | 64,769 | 91,132 | |||||||||||||
Gains on disposal of intangible assets | 109 | 206 | 8 | 11 | ||||||||||||
Gains on foreign currency translation | 42,953 | 11,108 | 17,128 | 12,925 | ||||||||||||
Gains on foreign currency transactions | 13,129 | 30,295 | 9,883 | 33,089 | ||||||||||||
Gains on insurance proceeds | 4,199 | 4,212 | — | — | ||||||||||||
Others | 46,870 | 157,106 | 38,787 | 145,605 | ||||||||||||
Other losses | ||||||||||||||||
Losses on disposal of property, plant and equipment | (16,540 | ) | (43,287 | ) | (14,474 | ) | (27,874 | ) | ||||||||
Losses on disposal of intangible assets | (28 | ) | (28 | ) | (18 | ) | (23 | ) | ||||||||
Losses on impairment of property, plant and equipment | (7,467 | ) | (37,152 | ) | — | (701,317 | ) | |||||||||
Losses on impairment of intangible assets | (451,823 | ) | (513,519 | ) | — | — | ||||||||||
Losses on foreign currency translation | — | (8,669 | ) | (2,164 | ) | (5,150 | ) | |||||||||
Losses on foreign currency transactions | (14,609 | ) | (43,524 | ) | (18,608 | ) | (51,981 | ) | ||||||||
Others | (37,510 | ) | (75,328 | ) | (12,248 | ) | (44,623 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(482,815 | ) | 83,063 | (548,206 | ) | ||||||||||||
|
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|
|
|
|
|
|
39. | Finance Income |
Finance income for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Interest income | 195,998 | 66,888 | 175,004 | |||||||||||||
Dividends income | 2,262 | 6,002 | — | 11,811 | ||||||||||||
Gains on disposal of financial assets | 1,619 | 2,584 | 83 | 755 | ||||||||||||
Gains on valuation of financial assets at fair value through profit or loss | 770 | 9,161 | 4,212 | 9,222 | ||||||||||||
Gains on valuation of derivatives | 298,016 | 644,129 | 3,581 | 231,692 | ||||||||||||
Gains on transaction of derivatives | 55,985 | 121,554 | 28,171 | 65,538 | ||||||||||||
Gains on foreign currency translation | 68,458 | 154,795 | 92,609 | 116,109 | ||||||||||||
Gains on foreign currency transactions | 2,773 | 16,605 | 2,863 | 17,030 | ||||||||||||
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| |||||||||
1,150,828 | 198,407 | 627,161 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
40. | Finance Expenses |
Finance expenses for the three and nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Interest expense | 1,537,845 | 479,883 | 1,407,191 | |||||||||||||
Losses on sale of financial assets | 229 | 490 | — | — | ||||||||||||
Losses on valuation of financial assets at fair value through profit or loss | 1,146 | 1,442 | 832 | 4,242 | ||||||||||||
Losses on valuation of derivatives | 1,356 | 36,286 | 119,991 | 70,861 | ||||||||||||
Losses on transaction of derivatives | 7,760 | 24,567 | 9,763 | 23,648 | ||||||||||||
Losses on foreign currency translation | 561,345 | 996,123 | 11,627 | 397,607 | ||||||||||||
Losses on foreign currency transactions | 27,928 | 36,676 | 12,183 | 28,596 | ||||||||||||
Others | 1,237 | 3,856 | 123 | 515 | ||||||||||||
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| |||||||||
2,637,285 | 634,402 | 1,932,660 | ||||||||||||||
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|
|
|
|
|
Capitalization rates for the nine-month periods ended September 30, 2019and 2018 are 2.34%~3.74% and 2.70%~3.64% respectively.
41. | 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 and previous periods, because income tax benefit occurred for the both periods.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
42. | AssetsHeld-for-Sale |
Assetsheld-for-sale as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Land (*1) | 2,765 | |||||||
Machinery | 3,536 | — | ||||||
Buildings and structures (*1) | 54 | 19,369 | ||||||
Investments in associates (*2,3) | 9,829 | — | ||||||
Investments in subsidiaries (*4,5) | 294 | 747 | ||||||
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|
| |||||
22,881 | ||||||||
|
|
|
|
(*1) | The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Group, determined to dispose the office building in Yongin as part of the government’s plan to relocatestate-run companies for balanced national development and moved the head office to Gimcheon, Gyeongsangbukdo, in August 2015. As the Group believes the book value of Yongin office will be recovered by a disposal transaction rather than continuous operation, it reclassified buildings, land and structures as assetsheld-for-sale. However, since the sale price of the office building has been expected to rise in accordance with the development plan in Yongin, Gyeonggi Province, the company has not actively carried out the procedure for the sale since May 2019. For this reason, the office building no longer satisfies the definition of assetsheld-for-sale by KIFRS 1105, due to the period required to complete the sale is expected more than one year under the circumstances that can be controlled by the company. Accordingly, the Group reclassified the office building as investment properties. |
(*2) | Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of September 30, 2019 and has been reclassified to assetsheld-for-sale, accordingly. |
(*3) | Dangjin Eco Power Co., Ltd. (before thespin-off) was divided into Ulsan GPS Co., Ltd. (Old), Dangjin Eco Power Co., Ltd. (New), and Eumseong Natural Gas Power Co., Ltd. (New) on August 19, 2019. After thespin-off, the shares of Ulsan GPS Co., Ltd. were classified as assets held for sale as of September 30, 2019, due to its planned sale. |
(*4) | Garolim Tidal Power Plant Co., Ltd. was in the process of liquidating its business as of September 30, 2019 and has been reclassified to assetsheld-for-sale, accordingly. |
(*5) | KOWEPO India Private Limited was in the process of liquidating its business as of December 30, 2018and has been reclassified to assetsheld-for-sale, and completed the liquidation process as of September 30, 2019. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
43. | Expenses Classified by Nature |
Expenses classified by nature for the nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 12,898,067 | 12,898,067 | ||||||||||
Salaries | 582,369 | 2,778,388 | 3,360,757 | |||||||||
Retirement benefit expense | 54,427 | 306,078 | 360,505 | |||||||||
Welfare and benefit expense | 87,631 | 315,066 | 402,697 | |||||||||
Insurance expense | 9,779 | 69,076 | 78,855 | |||||||||
Depreciation | 169,986 | 7,814,325 | 7,984,311 | |||||||||
Amortization of intangible assets | 56,775 | 58,839 | 115,614 | |||||||||
Bad debt expense | (15,417 | ) | — | (15,417 | ) | |||||||
Commission | 495,682 | 286,471 | 782,153 | |||||||||
Advertising expense | 23,690 | 6,302 | 29,992 | |||||||||
Training expense | 5,027 | 10,562 | 15,589 | |||||||||
Vehicle maintenance expense | 7,005 | 5,550 | 12,555 | |||||||||
Publishing expense | 2,099 | 2,115 | 4,214 | |||||||||
Business promotion expense | 2,183 | 2,776 | 4,959 | |||||||||
Rent expense | 31,725 | 138,558 | 170,283 | |||||||||
Telecommunication expense | 6,454 | 9,570 | 16,024 | |||||||||
Transportation expense | 659 | 3,109 | 3,768 | |||||||||
Taxes and dues | 47,108 | 371,669 | 418,777 | |||||||||
Expendable supplies expense | 4,520 | 21,490 | 26,010 | |||||||||
Water, light and heating expense | 10,043 | 25,630 | 35,673 | |||||||||
Repairs and maintenance expense | 44,057 | 1,530,595 | 1,574,652 | |||||||||
Ordinary development expense | 136,936 | 363,333 | 500,269 | |||||||||
Travel expense | 11,954 | 50,606 | 62,560 | |||||||||
Clothing expense | 3,197 | 4,013 | 7,210 | |||||||||
Survey and analysis expense | 636 | 2,716 | 3,352 | |||||||||
Membership fee | 865 | 11,731 | 12,596 | |||||||||
Power purchase | — | 13,766,681 | 13,766,681 | |||||||||
Others | 108,009 | 1,180,222 | 1,288,231 | |||||||||
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| |||||||
42,033,538 | 43,920,937 | |||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
43. | Expenses Classified by Nature, Continued |
Expenses classified by nature for the nine-month periods ended September 30, 2019 and 2018 are as follows, continued:
In millions of won | September 30, 2018 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 14,657,641 | 14,657,641 | ||||||||||
Salaries | 558,259 | 2,548,980 | 3,107,239 | |||||||||
Retirement benefit expense | 47,431 | 273,664 | 321,095 | |||||||||
Welfare and benefit expense | 97,493 | 349,651 | 447,144 | |||||||||
Insurance expense | 9,884 | 72,205 | 82,089 | |||||||||
Depreciation | 159,600 | 7,297,526 | 7,457,126 | |||||||||
Amortization of intangible assets | 38,593 | 48,339 | 86,932 | |||||||||
Bad debt expense | 26,740 | — | 26,740 | |||||||||
Commission | 510,765 | 324,981 | 835,746 | |||||||||
Advertising expense | 20,095 | 6,159 | 26,254 | |||||||||
Training expense | 5,112 | 8,009 | 13,121 | |||||||||
Vehicle maintenance expense | 7,476 | 5,558 | 13,034 | |||||||||
Publishing expense | 2,009 | 2,279 | 4,288 | |||||||||
Business promotion expense | 2,193 | 2,943 | 5,136 | |||||||||
Rent expense | 31,812 | 125,236 | 157,048 | |||||||||
Telecommunication expense | 17,434 | 61,292 | 78,726 | |||||||||
Transportation expense | 428 | 3,111 | 3,539 | |||||||||
Taxes and dues | 36,267 | 355,979 | 392,246 | |||||||||
Expendable supplies expense | 4,338 | 21,418 | 25,756 | |||||||||
Water, light and heating expense | 10,349 | 26,675 | 37,024 | |||||||||
Repairs and maintenance expense | 38,372 | 1,514,420 | 1,552,792 | |||||||||
Ordinary development expense | 133,729 | 362,657 | 496,386 | |||||||||
Travel expense | 10,497 | 49,874 | 60,371 | |||||||||
Clothing expense | 4,419 | 2,536 | 6,955 | |||||||||
Survey and analysis expense | 513 | 2,654 | 3,167 | |||||||||
Membership fee | 851 | 5,977 | 6,828 | |||||||||
Power purchase | — | 13,362,533 | 13,362,533 | |||||||||
Others | 91,848 | 1,513,759 | 1,605,607 | |||||||||
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43,006,056 | 44,872,563 | |||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
44. | Earnings (Loss) Per Share |
(1) | Basic earnings (loss) per share for the nine-month periods ended September 30, 2019 and 2018 are as follows: |
In won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Type | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | ||||||||||||
Basic earnings (loss) per share | (1,577 | ) | 1,104 | (807 | ) |
(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 nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won except number of shares | September 30, 2019 | September 30, 2018 | ||||||||||||||
Type | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- month period ended | ||||||||||||
Net profit (loss) attributable to controlling interest | (1,012,555 | ) | 708,582 | (517,907 | ) | |||||||||||
Profit (loss) used in the calculation of total basic earnings per share | 222,789 | (1,012,555 | ) | 708,582 | (517,907 | ) | ||||||||||
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 nine-month periods ended September 30, 2019 and 2018 are as follows: |
In number of shares | September 30, 2019 | September 30, 2018 | ||||||||||||||
Type | Three- month period ended | Nine- month period ended | Three- month period ended | Nine- 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 nine-month periods ended September 30, 2019 and 2018. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | 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 September 30, 2019and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Total borrowings and debt securities | 61,034,627 | |||||||
Cash and cash equivalents | 1,545,605 | 1,358,345 | ||||||
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| |||||
Net borrowings and debt securities | 64,467,259 | 59,676,282 | ||||||
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| |||||
Total shareholder’s equity | 70,024,545 | 71,092,762 | ||||||
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| |||||
Debt to equity ratio | 92.06 | % | 83.94 | % |
(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), 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 counterparty will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.
② | Impairment and allowance account |
In accordance with the Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.
Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | 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 September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | 1,358,345 | |||||||
Financial assets at fair value through profit or loss | 2,750,834 | 920,935 | ||||||
Derivative assets (trading) | 312,754 | 37,631 | ||||||
Financial assets at fair value through other comprehensive income | 394,372 | 399,495 | ||||||
Financial assets at amortized cost | 13,273 | 14,042 | ||||||
Loans | 745,811 | 718,674 | ||||||
Long-term/short-term financial instruments | 2,670,704 | 2,318,027 | ||||||
Derivative assets (applying hedge accounting) | 291,817 | 64,704 | ||||||
Trade and other receivables | 8,781,491 | 9,613,437 | ||||||
Financial guarantee contracts (*) | 3,124,219 | 1,310,817 |
(*) | 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 andnon-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.
(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% increase and decrease movements in the actuarial valuation assumptions as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||||
Type | Accounts | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | |||||||||||||
Future salary increases | Increase (decrease) in defined benefit obligation | (452,981 | ) | 416,956 | (363,820 | ) | ||||||||||||
Discount rate | Increase (decrease) in defined benefit obligation | (444,714 | ) | 526,167 | (377,221 | ) | 445,833 |
Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the nine-month periods ended September 30, 2019and 2018 are13,288 million andW10,994 million, respectively.W
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
② | Provisions |
Changes in provisions due to movements in underlying assumptions as of September30, 2019 and December 31, 2018 are as follows:
Type | Accounts | September 30, 2019 | December 31, 2018 | |||||||||
PCBs | Inflation rate | 1.27 | % | 1.27 | % | |||||||
Discount rate | 2.18 | % | 2.18 | % | ||||||||
Nuclear plants | Inflation rate | 1.21 | % | 1.21 | % | |||||||
Discount rate | 2.94 | % | 2.94 | % | ||||||||
Spent fuel | Inflation rate | 2.93 | % | 2.93 | % | |||||||
Discount rate | 4.49 | % | 4.49 | % |
A sensitivity analysis of provisions assuming a 0.1% increase and decrease movements in the underlying assumptions as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||||
Type | Accounts | 0.1% Increase | 0.1% Decrease | 0.1% Increase | 0.1% Decrease | |||||||||||||
Discount rate | PCBs | 522 | (623 | ) | 627 | |||||||||||||
Nuclear plants | (288,969 | ) | 254,858 | (256,513 | ) | 263,595 | ||||||||||||
Spent fuel | (51,607 | ) | 53,621 | (49,182 | ) | 51,098 | ||||||||||||
Inflation rate | PCBs | 526 | (524 | ) | 632 | (629 | ) | |||||||||||
Nuclear plants | 282,007 | (330,920 | ) | 294,984 | (287,110 | ) | ||||||||||||
Spent fuel | 54,396 | (52,424 | ) | 51,837 | (49,961 | ) |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
Management judgement affected 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 September 30, 2019 and December 31, 2018 are as follows:
In thousands of foreign currencies | Assets | Liabilities | ||||||||||||||
Type | September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | ||||||||||||
AED | 42,686 | 10,513 | 60,655 | 5,890 | ||||||||||||
AUD | 142 | 143 | 757,588 | 717,712 | ||||||||||||
BDT | 83,198 | 71,575 | 1,138 | 1,175 | ||||||||||||
BWP | 1,437 | 1,214 | — | — | ||||||||||||
CAD | 114 | 96 | 9 | 4 | ||||||||||||
CHF | — | — | 501,344 | 400,000 | ||||||||||||
CNY | — | — | 26,140 | 26,140 | ||||||||||||
CZK | — | — | 1,954 | — | ||||||||||||
EUR | 694 | 337 | 19,621 | 105,673 | ||||||||||||
GBP | — | — | 88 | 1 | ||||||||||||
GHS | — | 25,794 | — | — | ||||||||||||
HKD | — | — | 1,648,784 | 1,650,000 | ||||||||||||
IDR | 157,617 | 60,568 | 65,249 | 206,935 | ||||||||||||
INR | 1,155,534 | 1,228,795 | 195,429 | 183,963 | ||||||||||||
JOD | 2,603 | 2,764 | 7 | 5 | ||||||||||||
JPY | 201,391 | 35,935 | 144,877 | 390,921 | ||||||||||||
KZT | 319 | 319 | — | — | ||||||||||||
MGA | 4,692,528 | 3,318,447 | 106,294 | 170,641 | ||||||||||||
MMK | 29,651 | 25,208 | — | — | ||||||||||||
PHP | 262,559 | 709,285 | 114,345 | 66,985 | ||||||||||||
PKR | 368,414 | 305,542 | 4,039 | 3,588 | ||||||||||||
SAR | 2,241 | 2,024 | 40 | — | ||||||||||||
SEK | — | — | 488 | 450,000 | ||||||||||||
USD | 984,223 | 1,422,510 | 10,395,270 | 8,103,602 | ||||||||||||
UYU | 145,992 | 39,898 | 4,394 | 4,253 | ||||||||||||
VND | 1,610,228 | — | — | — | ||||||||||||
ZAR | 318 | 170 | 103 | 4 |
A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of September 30, 2019and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Type | 10% Increase | 10% Decrease | 10% Increase | 10% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 1,278,130 | (887,561 | ) | 887,561 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (1,278,130 | ) | 1,278,130 | (887,561 | ) | 887,561 |
(*) | 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 September 30, 2019 and December 31, 2018. To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into cross-currency swap agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Group enters into currency forward agreements.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
② | Interest rate risk |
The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1% 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 September 30, 2019and December 31, 2018 are as follows:
In millions of won | ||||||||
Type | September 30, 2019 | December 31, 2018 | ||||||
Short-term borrowings | 24,235 | |||||||
Long-term borrowings | 2,603,967 | 2,358,860 | ||||||
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| |||||
2,383,095 | ||||||||
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|
A sensitivity analysis on the Group’s long-term borrowings and debt securities assuming a 1% increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows:
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Type | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 19,530 | (23,831 | ) | 23,831 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (19,530 | ) | 19,530 | (23,831 | ) | 23,831 |
(*) | The effect on the shareholders’ equity excluding the impact of income taxes. |
To manage its interest rate risks, the Group enters into certain interest swap agreements or maintains an appropriate mix of fixed and floating rate borrowings. These sensitivity analyses above are conducted without consideration of hedge effect of related derivatives.
③ | Electricity rates risk |
The Group is exposed to electricity rates risk due to the rate regulation of the government which considers the effect of electricity rate on 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 nine-month periods ended September 30, 2019and 2018 are as follows:
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Type | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | (420,356 | ) | 426,371 | (426,371 | ) | |||||||||||
Increase (decrease) of shareholder’s equity (*) | 420,356 | (420,356 | ) | 426,371 | (426,371 | ) |
(*) | The effect on the shareholders’ equity excluding the impact of income taxes. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
(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 following table shows the details of maturities ofnon-derivative financial liabilities as of September 30, 2019 and December 31, 2018. This table, based on the undiscounted cash flows of thenon-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.
In millions of won | September 30, 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Borrowings and debt securities | 9,907,911 | 27,728,872 | 28,737,660 | 78,345,981 | ||||||||||||||||
Lease liabilities | 669,974 | 561,243 | 1,683,730 | 2,798,501 | 5,713,448 | |||||||||||||||
Trade and other payables | 4,716,032 | 372,693 | 917,980 | 1,493,049 | 7,499,754 | |||||||||||||||
Financial guarantee contracts (*) | 948,855 | — | 33,529 | 2,141,835 | 3,124,219 | |||||||||||||||
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10,841,847 | 30,364,111 | 35,171,045 | 94,683,402 | |||||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Borrowings and debt securities | 9,274,378 | 28,143,311 | 25,312,534 | 72,934,694 | ||||||||||||||||
Finance lease liabilities | 87,709 | 87,709 | 141,074 | 65,250 | 381,742 | |||||||||||||||
Trade and other payables | 6,348,195 | 150,479 | 375,661 | 2,188,950 | 9,063,285 | |||||||||||||||
Financial guarantee contracts (*) | 91,722 | 855,488 | 363,607 | — | 1,310,817 | |||||||||||||||
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| |||||||||||
10,368,054 | 29,023,653 | 27,566,734 | 83,690,538 | |||||||||||||||||
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|
(*) | This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of September 30, 2019 and December 31, 2018 are |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
The expected maturities fornon-derivative financial assets as of September 30, 2019 and December 31, 2018 in detail are as follows:
In millions of won | September 30, 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~5 Years | More than 5 years | Other (*) | Total | |||||||||||||||
Cash and cash equivalents | — | — | — | 1,545,605 | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | — | — | 394,372 | 394,372 | |||||||||||||||
Financial assets at amortized cost | 12,053 | 1,137 | 83 | — | 13,273 | |||||||||||||||
Loans | 99,307 | 369,516 | 299,388 | 15,309 | 783,520 | |||||||||||||||
Long-term/short-term financial instruments | 2,104,338 | 269,184 | — | 297,182 | 2,670,704 | |||||||||||||||
Financial assets at fair value through profit or loss | 2,105,295 | 7,109 | — | 638,430 | 2,750,834 | |||||||||||||||
Trade and other receivables | 6,801,642 | 1,824,806 | 4,571 | 157,718 | 8,788,737 | |||||||||||||||
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|
|
|
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| |||||||||||
2,471,752 | 304,042 | 1,503,011 | 16,947,045 | |||||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
Type | Less than 1 year | 1~5 Years | More than 5 years | Other (*) | Total | |||||||||||||||
Cash and cash equivalents | — | — | — | 1,358,345 | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | — | — | 399,495 | 399,495 | |||||||||||||||
Financial assets at amortized cost | 11,956 | 2,086 | — | — | 14,042 | |||||||||||||||
Loans | 123,646 | 314,744 | 319,988 | — | 758,378 | |||||||||||||||
Long-term/short-term financial instruments | 1,869,286 | 278,899 | 164,057 | 5,785 | 2,318,027 | |||||||||||||||
Financial assets at fair value through profit or loss | 313,893 | 81,828 | 483,398 | 41,816 | 920,935 | |||||||||||||||
Trade and other receivables | 7,795,619 | 1,067,800 | 701,743 | 57,651 | 9,622,813 | |||||||||||||||
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1,745,357 | 1,669,186 | 504,747 | 15,392,035 | |||||||||||||||||
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(*) | The maturities cannot be presently determined. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
Derivative liabilities classified by maturity periods from reporting date to maturity date of contract as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Net settlement | ||||||||||||||||||||
- Trading | — | — | — | 130 | ||||||||||||||||
Gross settlement | ||||||||||||||||||||
- Trading | (3,149 | ) | (5,116 | ) | (24,459 | ) | 6,371 | (26,353 | ) | |||||||||||
- Hedging | (61,715 | ) | 16,434 | 18,363 | (24,509 | ) | (51,427 | ) | ||||||||||||
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11,318 | (6,096 | ) | (18,138 | ) | (77,650 | ) | ||||||||||||||
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In millions of won | December 31, 2018 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Net settlement | ||||||||||||||||||||
- Trading | — | — | — | — | ||||||||||||||||
Gross settlement | ||||||||||||||||||||
- Trading | 5,734 | 16,565 | 28,283 | 40,124 | 90,706 | |||||||||||||||
- Hedging | 5,154 | (43,447 | ) | 71,840 | (40,917 | ) | (7,370 | ) | ||||||||||||
|
|
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|
|
|
|
|
| |||||||||||
(26,882 | ) | 100,123 | (793 | ) | 83,336 | |||||||||||||||
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|
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | 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 arms-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.
In the case of trade receivables and payables, the Group considers the carrying value net of impairment as fair value. For disclosure purposes, the fair value of financial liabilities is estimated by discounting 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 September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Type | Book value | Fair value | Book value | Fair value | ||||||||||||
Assets recognized at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | 394,372 | 399,495 | 399,495 | |||||||||||||
Derivative assets (trading) | 312,754 | 312,754 | 37,631 | 37,631 | ||||||||||||
Derivative assets (applying hedge accounting) | 291,817 | 291,817 | 64,704 | 64,704 | ||||||||||||
Financial assets at fair value through profit or loss | 2,750,834 | 2,750,834 | 920,935 | 920,935 | ||||||||||||
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|
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|
|
| |||||||||
3,749,777 | 1,422,765 | 1,422,765 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Assets carried at amortized cost | ||||||||||||||||
Financial assets at amortized cost | 13,273 | 14,042 | 14,042 | |||||||||||||
Loans and receivables | 745,811 | 745,811 | 718,674 | 718,674 | ||||||||||||
Trade and other receivables | 8,781,491 | 8,781,491 | 9,613,437 | 9,613,437 | ||||||||||||
Long-term financial instruments | 566,366 | 566,366 | 448,741 | 448,741 | ||||||||||||
Short-term financial instruments | 2,104,338 | 2,104,338 | 1,869,286 | 1,869,286 | ||||||||||||
Cash and cash equivalents | 1,545,605 | 1,545,605 | 1,358,345 | 1,358,345 | ||||||||||||
|
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|
|
|
|
|
| |||||||||
13,756,884 | 14,022,525 | 14,022,525 | ||||||||||||||
|
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|
|
|
|
|
| |||||||||
Liabilities recognized at fair value | ||||||||||||||||
Derivative liabilities (trading) | 47,168 | 99,010 | 99,010 | |||||||||||||
Derivative liabilities (applying hedge accounting) | 131,520 | 131,520 | 213,153 | 213,153 | ||||||||||||
|
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|
|
|
|
| |||||||||
178,688 | 312,163 | 312,163 | ||||||||||||||
|
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|
|
|
|
| |||||||||
Liabilities carried at amortized cost | ||||||||||||||||
Secured borrowings | 161,027 | 741,029 | 741,029 | |||||||||||||
Unsecured bond | 60,571,808 | 64,100,818 | 56,603,988 | 58,804,070 | ||||||||||||
Lease liabilities | 4,993,683 | 4,993,683 | 283,806 | 283,806 | ||||||||||||
Unsecured borrowings | 5,269,605 | 5,294,703 | 3,522,602 | 3,950,517 | ||||||||||||
Trade and other payables (*) | 7,499,754 | 7,499,754 | 9,063,285 | 9,063,285 | ||||||||||||
Bank overdraft | 10,424 | 10,424 | 167,008 | 167,008 | ||||||||||||
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| |||||||||
82,060,409 | 70,381,718 | 73,009,715 | ||||||||||||||
|
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|
|
|
|
|
(*) | Excludes lease liabilities |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | 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 September 30, 2019 and December 31, 2018 are as follows:
Type | September 30, 2019 | December 31, 2018 | ||||||
Derivatives | 0.33% ~ 4.16% | 0.02% ~ 4.16% | ||||||
Borrowings and debt securities | 0.40% ~ 4.38% | 0.51% ~ 5.14% | ||||||
Lease | 1.76% ~ 10.83% | 3.50% ~ 10.83% |
(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 levels as of September 30, 2019 and December 31, 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||||||
Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | 190,550 | 394,372 | |||||||||||||
Derivative assets | — | 604,571 | — | 604,571 | ||||||||||||
Financial assets at fair value through profit or loss | — | 2,745,687 | 5,147 | 2,750,834 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
3,350,258 | 195,697 | 3,749,777 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Financial liabilities at fair value | ||||||||||||||||
Derivative liabilities | 178,688 | — | 178,688 |
In millions of won | December 31, 2018 | |||||||||||||||
Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | 189,439 | 399,495 | |||||||||||||
Derivative assets | — | 100,490 | 1,845 | 102,335 | ||||||||||||
Financial assets at fair value through profit or loss | 106,600 | 809,283 | 5,052 | 920,935 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
909,773 | 196,336 | 1,422,765 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Financial liabilities at fair value | ||||||||||||||||
Derivative liabilities | 310,008 | 2,155 | 312,163 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
45. | Risk Management, Continued |
(3) | Fair value risk, continued |
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.
Changes of financial assets and liabilities which are classified as level 3 for the nine-month period ended September 30, 2019 and for the year ended December 31, 2018 are as follows:
In millions of won | September 30, 2019 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisition | Reclassified category | Valuation | Disposal | Foreign currency translation | Ending balance | |||||||||||||||||||||||||
Financial assets at fair value | ||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||||||||||||||||||
Cooperative | — | 40 | — | 55 | — | — | 5,147 | |||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||||||||||||||||||
Unlisted securities | 189,439 | — | — | — | 22 | (916 | ) | 2,005 | 190,550 |
In millions of won | December 31, 2018 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisition | Reclassified category | Valuation | Disposal | Foreign currency translation | Ending balance | |||||||||||||||||||||||||
Financial assets at fair value | ||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||||||||||||||||||
Cooperative | 5,038 | — | — | 14 | — | — | 5,052 | |||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income | ||||||||||||||||||||||||||||||||
Unlisted securities | — | 197,450 | — | — | (11,744 | ) | (326 | ) | 4,059 | 189,439 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
46. | 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 September 30, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1~2 years | 125,481 | |||
2~3 years | 83,653 | |||
|
| |||
|
|
(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 PNL 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 September 30, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1~2 years | 28,815 | |||
2~3 years | 28,847 | |||
Over 3 years | 598,866 | |||
|
| |||
|
|
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties |
(1) | Related parties of the Group as of September 30, 2019 are as follows: |
Type | Related party | |
Parent | Republic of Korea government | |
Subsidiaries (113 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, Korea Electric Power Nigeria Ltd., 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, 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, EWP Philippines Corporation, 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, DG Fairhaven Power, LLC, DG Whitefield, LLC, EWP Renewable Corporation, EWPRC Biomass Holdings, LLC, Springfield Power, LLC, HeeMang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., HI Carbon Professional Private Special Asset Investment Trust 1, Chitose Solar Power Plant LLC., Solar School Plant Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Limitada, 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 (formerly, Cogentrix of Alamosa, LLC),KEPCO-LG CNS Mangilao Holdings LLC, Mangilao Investment LLC,KEPCO-LG CNS Mangilao Solar, LLC, Jeju Hanlim Offshore Wind Co., Ltd., PT. Siborpa Eco Power,e-New Industry LB Fund 1, Songhyune-New Industry Fund, BSKE-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. | |
Associates (62 associates) | Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Jeongam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Energy Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Naepo Green Energy Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Cheongna Energy Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Hyundai Energy Co., Ltd., Ecollite Co., Ltd., 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., Hadong Mineral Fiber Co., Ltd., Green Biomass 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-PianXe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. 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., YaksuESS 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 Operatin Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1 | |
Joint ventures (59 joint ventures) | Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, Daejung Offshore Wind Power Co., Ltd., KAPES, Inc., Honam Wind Power 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., GS Donghae Electric Power Co., Ltd., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P.,ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A, PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co.,Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, 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., Eumseong Natural Gas Power Co., Ltd. | |
Others (4 others) | Korea Development Bank, Ulleungdo Natural Energy Co., Ltd., Garolim Tidal Power Plant Co., Ltd., Ulsan GPS Co., Ltd. (formerly, Dangjin Eco Power Co., Ltd.) |
(2) | Transactions between the Company and its subsidiaries are eliminated during the consolidation and are not disclosed in the notes. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(3) | Related party transactions for the nine-month periods ended September 30, 2019 and 2018 are as follows: |
<Sales and Others>
In millions of won | Sales and others | |||||||||||
Company name | Transaction type | September 30, 2019 | September 30, 2018 | |||||||||
<Associates> | ||||||||||||
Korea Gas Corporation | Electricity sales | 70,125 | ||||||||||
Dongducheon Dream Power Co., Ltd. | Electricity sales | 4,590 | 4,417 | |||||||||
S-Power Co., Ltd. | Service | 4,869 | 7,077 | |||||||||
Hyundai Green Power Co., Ltd. | Design service | 12,627 | 12,873 | |||||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 8,608 | 8,665 | |||||||||
Daeryun Power Co., Ltd. | Electricity sales | 1,411 | 1,291 | |||||||||
Korea Power Exchange | Service | 5,303 | 4,918 | |||||||||
Samcheok Eco Materials Co., Ltd. | Electricity sales | 447 | 384 | |||||||||
Gangwon Wind Power Co., Ltd. | Electricity sales | 2,369 | 2,368 | |||||||||
Cheongna Energy Co., Ltd. | Service | 8,287 | 8,242 | |||||||||
Others (Busan Green Energy Co., Ltd. and 35 others) | Electricity sales | 129,840 | 82,532 | |||||||||
<Joint ventures> | ||||||||||||
GS Donghae Electric Power Co., Ltd. | Electricity sales | 14,288 | 5,870 | |||||||||
Chun-cheon Energy Co., Ltd. | Electricity sales | 1,636 | 989 | |||||||||
Daegu Green Power Co., Ltd. | Electricity sales | 852 | 775 | |||||||||
Nawah Energy Company | Service | 73,352 | 33,941 | |||||||||
KAPES, Inc. | Commission | 233 | 500 | |||||||||
Rabigh Electricity Company | Service | 146 | 16,250 | |||||||||
Seokmun Energy Co., Ltd. | Service | 1,158 | 694 | |||||||||
Yeonggwang Wind Power Co., Ltd. | Electricity sales | 526 | — | |||||||||
Others (Yeonggwangbaeksu Wind Power Co., Ltd. and 30 others) | Electricity sales | 66,822 | 88,438 | |||||||||
<Others> | ||||||||||||
Yeongwol Energy Station Co., Ltd. | Service | — | 373 | |||||||||
DS POWER Co., Ltd. | Service | — | 565 | |||||||||
Korea Development Bank | Electricity sales | 3,092 | 2,614 | |||||||||
Interest income | 1,489 | 3,695 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(3) | Related party transactions for the nine-month periods ended September 30, 2019 and 2018 are as follows, continued: |
<Purchase and Others>
In millions of won |
| Purchase and others | ||||||||||
Company name | Transaction type | September 30, 2019 | September 30, 2018 | |||||||||
<Associates> | ||||||||||||
Korea Gas Corporation | Electricity sales | 3,862,981 | ||||||||||
Dongducheon Dream Power Co., Ltd. | Electricity sales | 528,511 | 612,641 | |||||||||
S-Power Co., Ltd. | Service | 401,453 | 343,405 | |||||||||
Hyundai Green Power Co., Ltd. | Design service | 360,087 | 361,019 | |||||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 185,368 | 193,921 | |||||||||
Daeryun Power Co., Ltd. | Electricity sales | 104,593 | 127,596 | |||||||||
Korea Power Exchange | Service | 96,265 | 101,562 | |||||||||
Samcheok Eco Materials Co., Ltd. | Electricity sales | 5,821 | 1,311 | |||||||||
Gangwon Wind Power Co., Ltd. | Electricity sales | 17,891 | 19,199 | |||||||||
Cheongna Energy Co., Ltd. | Service | 58,747 | 58 | |||||||||
Others (Busan Green Energy Co., Ltd. and 35 others) | Electricity sales | 61,358 | 70,580 | |||||||||
<Joint ventures> | ||||||||||||
GS Donghae Electric Power Co., Ltd. | Electricity sales | 542,355 | 590,921 | |||||||||
Chun-cheon Energy Co., Ltd. | Electricity sales | 242,622 | 248,606 | |||||||||
Daegu Green Power Co., Ltd. | Electricity sales | 223,741 | 192,827 | |||||||||
KAPES, Inc. | Commission | 62,294 | 68,766 | |||||||||
Seokmun Energy Co., Ltd. | Service | 19,644 | 23,614 | |||||||||
Yeonggwang Wind Power Co., Ltd. | Electricity sales | 24,204 | — | |||||||||
Others (Yeonggwangbaeksu Wind Power Co., Ltd. and 30 others) | Electricity sales | 22,787 | 23,828 | |||||||||
<Others> | ||||||||||||
DS POWER Co., Ltd. | Service | — | 4,019 | |||||||||
Korea Development Bank | Interest expense | 2,987 | 3,971 | |||||||||
Dividends paid | 15 | 166,876 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
<Associates> | ||||||||||||||||||
Korea Gas Corporation | Trade receivables | 9,439 | — | — | ||||||||||||||
Non-trade receivables and others | 331 | 498 | — | — | ||||||||||||||
Trade payables | — | — | 261,861 | 601,092 | ||||||||||||||
Non-trade payables and others | — | — | 816 | 314 | ||||||||||||||
S-Power Co., Ltd. | Trade receivables | 238 | 922 | — | — | |||||||||||||
Non-trade receivables and others | 43 | 34 | — | — | ||||||||||||||
Trade payables | — | — | 31,824 | 56,897 | ||||||||||||||
Non-trade payables and others | — | — | — | 16 | ||||||||||||||
Dongducheon Dream Power Co., Ltd. | Trade receivables | 356 | 332 | — | — | |||||||||||||
Non-trade receivables and others | 215 | 298 | — | — | ||||||||||||||
Trade payables | — | — | 46,733 | 74,651 | ||||||||||||||
Non-trade payables and others | — | — | 22 | 10 | ||||||||||||||
Goseong Green Energy Co., Ltd. | Trade receivables | 200 | — | — | — | |||||||||||||
Non-trade payables and others | — | — | 66,957 | 43,020 | ||||||||||||||
Hyundai Green Power Co., Ltd. | Trade receivables | 370 | 390 | — | — | |||||||||||||
Trade payables | — | — | 34,625 | 38,072 | ||||||||||||||
Daeryun Power Co., Ltd. | Trade receivables | 137 | 178 | — | — | |||||||||||||
Trade payables | — | — | 9,743 | 15,845 | ||||||||||||||
Hyundai Energy Co., Ltd. | Trade receivables | 61 | 57 | — | — | |||||||||||||
Non-trade receivables and others | 12,206 | 9,664 | — | — | ||||||||||||||
Trade payables | — | — | 205 | 259 | ||||||||||||||
Non-trade payables and others | — | — | 9,378 | 8,021 | ||||||||||||||
Gunsan Bio Energy Co., Ltd. | Non-trade receivables and others | — | 3,458 | — | — | |||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | Trade receivables | 614 | 278 | — | — | |||||||||||||
Non-trade receivables and others | 43 | 51 | — | — | ||||||||||||||
Trade payables | — | — | 5,663 | — | ||||||||||||||
Non-trade payables and others | — | — | 3,332 | 13,102 | ||||||||||||||
Noeul Green Energy Co., Ltd. | Trade receivables | 3 | 3 | — | — | |||||||||||||
Non-trade payables and others | — | — | 1,365 | 8,774 | ||||||||||||||
Busan Green Energy Co., Ltd. | Trade receivables | 1 | 1 | — | — | |||||||||||||
Non-trade payables and others | — | — | 833 | 10,882 | ||||||||||||||
Korea Power Exchange | Trade receivables | 1,408 | 847 | — | — | |||||||||||||
Non-trade receivables and others | 25,522 | 229 | — | — | ||||||||||||||
Trade payables | — | — | 4,125 | — | ||||||||||||||
Non-trade payables and others | — | — | 4,788 | 1,214 | ||||||||||||||
Others (Gangwon Wind Power Co., Ltd. and 34 others) | Trade receivables | 2,199 | 721 | — | — | |||||||||||||
Non-trade receivables and others | 5,649 | 1,377 | — | — | ||||||||||||||
Trade payables | — | — | 2,528 | 6,217 | ||||||||||||||
Non-trade payables and others | — | — | 1,647 | 740 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of September 30, 2019 and December 31, 2018 are as follows, continued: |
In millions of won | Receivables | Payables | ||||||||||||||||||
Company name | Type | September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||
<Joint ventures> | ||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | Trade receivables | 176 | 245 | — | — | |||||||||||||||
Non-trade receivables and others | 322 | 2,537 | — | — | ||||||||||||||||
Trade payables | — | — | 37,271 | 69,820 | ||||||||||||||||
Non-trade payables and others | — | — | 179 | 59 | ||||||||||||||||
Nawah Energy Company | Trade receivables | 47,899 | 29,614 | — | — | |||||||||||||||
Non-trade receivables and others | — | 253 | — | — | ||||||||||||||||
Chun-cheon Energy Co., Ltd. | Trade receivables | 116 | 20 | — | — | |||||||||||||||
Non-trade receivables and others | 2,755 | 308 | — | — | ||||||||||||||||
Trade payables | — | — | 21,318 | 33,796 | ||||||||||||||||
Daegu Green Power Co., Ltd. | Trade receivables | 134 | 110 | — | — | |||||||||||||||
Non-trade receivables and others | — | 12 | — | — | ||||||||||||||||
Trade payables | — | — | 18,369 | 32,609 | ||||||||||||||||
Amman Asia Electric Power Company | Non-trade payables and others | — | — | 18,211 | 18,351 | |||||||||||||||
KAPES, Inc. | Non-trade receivables and others | — | 253 | — | — | |||||||||||||||
Non-trade payables and others | — | — | 4 | 338 | ||||||||||||||||
Honam Wind Power Co., Ltd. | Trade payables | — | — | 134 | 432 | |||||||||||||||
Non-trade payables and others | — | — | 1,493 | 3,573 | ||||||||||||||||
Kelar S.A | Non-trade receivables and others | 16,730 | — | — | — | |||||||||||||||
Others (Seokmun Energy Co., Ltd. and 16 others) | Trade receivables | 1,542 | 784 | — | — | |||||||||||||||
Non-trade receivables and others | 3,140 | 839 | — | — | ||||||||||||||||
Trade payables | — | — | 417 | 911 | ||||||||||||||||
Non-trade payables and others | — | — | 6,311 | 6,577 | ||||||||||||||||
<Others> | ||||||||||||||||||||
Korea Development Bank | Accrued interest income | 1,151 | 1,147 | — | — | |||||||||||||||
Non-trade receivables and others | 122,511 | 12,125 | — | — | ||||||||||||||||
Non-trade payables and others | — | — | 177 | 218 | ||||||||||||||||
Derivatives | 62,271 | 27,306 | 2,761 | 18,095 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(5) | Loans and others arising from related party transactions as of September 30, 2019 and December 31, 2018 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. | 95 | — | 1,909 | 29,638 | |||||||||||||||||
(Allowance for doubtful accounts) | (6,065 | ) | — | — | (2,519 | ) | (8,584 | ) | ||||||||||||||
Associates | PT. Cirebon Electric Power | 8,696 | — | (8,873 | ) | 761 | 584 | |||||||||||||||
Associates | Xe-PianXe-Namnoy Power Co., Ltd. | 1,413 | 6,300 | — | — | 7,713 | ||||||||||||||||
Associates | PT. Wampu Electric Power | 14,880 | — | — | 1,956 | 16,836 | ||||||||||||||||
Associates | Gunsan Bio Energy Co., Ltd. | 9,396 | 3,000 | — | — | 12,396 | ||||||||||||||||
Associates | Hyundai Energy Co., Ltd. | 2,465 | — | — | — | 2,465 | ||||||||||||||||
(Allowance for doubtful accounts) | (2,465 | ) | — | — | — | (2,465 | ) | |||||||||||||||
Joint ventures | Kelar S.A | 48,694 | — | — | 3,623 | 52,317 | ||||||||||||||||
Joint ventures | Chester Solar IV SpA | — | 1,683 | — | 56 | 1,739 | ||||||||||||||||
Joint ventures | Chun-cheon Energy Co., Ltd. | 616 | 1,868 | — | — | 2,484 | ||||||||||||||||
Joint ventures | Chester Solar V SpA | — | 533 | — | 18 | 551 | ||||||||||||||||
Joint ventures | Diego de Almagro Solar SpA | — | 2,094 | — | 71 | 2,165 | ||||||||||||||||
Joint ventures | Dangjin Eco Power Co., Ltd. | — | 2,600 | — | — | 2,600 | ||||||||||||||||
Joint ventures | DE energia SpA | — | 6,799 | — | 82 | 6,881 | ||||||||||||||||
Joint ventures | Eumseong Natural Gas Power Co., Ltd. | — | 20,000 | — | — | 20,000 | ||||||||||||||||
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44,972 | (8,873 | ) | 5,957 | 147,320 | ||||||||||||||||||
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(6) | Borrowings arising from related party transactions as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | ||||||||||||||||||||||
Related parties | Type | Beginning balance | Borrowings | Repayment | Others | Ending balance | ||||||||||||||||
Korea Development Bank | Facility | — | (10,573 | ) | — | 56,220 | ||||||||||||||||
Others | 4,154 | — | (491 | ) | — | 3,663 | ||||||||||||||||
Operating funds | 81,000 | 12,242 | (32,000 | ) | (85 | ) | 61,157 | |||||||||||||||
Syndicated Loan | 17,276 | — | (985 | ) | 1,665 | 17,956 |
(7) | Guarantees provided to associates or joint ventures as of September 30, 2019 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 | SAPCO | |||||
Korea Electric Power Corporation | Rabigh Operation & Maintenance Company Limited | Performance guarantees and others | USD | 1,386 | RABEC | |||||
Korea Electric Power Corporation | Barakah One Company | Debt guarantees | USD | 900,000 | Export-Import Bank of Korea and others | |||||
Performance guarantees and others | USD | 3,776,561 | ||||||||
Korea Electric Power Corporation | RE Holiday Holdings LLC | Performance guarantees | USD | 223,000 | EPS Renewables Holdings, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | RE Pioneer Holdings LLC | Performance guarantees | USD | 170,000 | EPS Renewables Holdings, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | RE Barren Ridge 1 Holdings LLC | Performance guarantees | USD | 149,000 | Firstar Development, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | Nghi Son 2 Power LLC | Performance guarantees | USD | 27,930 | SMBC Ho Chi Minh and others | |||||
Korea Western Power Co., Ltd. | Cheongna Energy Co., Ltd. | Collateralized money invested Guarantees for supplemental funding and others (*1) | KRW
| 82 — |
| Hana Bank and others |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(7) | Guarantees provided to associates or joint ventures as of September 30, 2019 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. | Xe-PianXe-Namnoy Power Co., Ltd. | Payment guarantees for business reserve | USD | 2,500 | Krung Thai Bank | |||||
Collateralized money invested | KRW | 77,735 | Krung Thai Bank | |||||||
Impounding bonus guarantees | USD | 5,000 | SK E&C | |||||||
Korea Western Power Co., Ltd. | Rabigh Operation & Maintenance Company Limited | Performance guarantees and others | SAR | 5,600 | Saudi Arabia British Bank | |||||
Korea Western Power Co., Ltd. | Daegu Photovoltaic Co., Ltd. | Collateralized money invested | KRW | 2,041 | Korea Development Bank | |||||
Korea Western Power Co., Ltd. | Dongducheon Dream Power Co., Ltd. | Collateralized money invested (*2) | KRW | 40,588 | Kookmin Bank and others | |||||
Debt guarantees | KRW | 20,300 | BNK Securities and others | |||||||
Korea Western Power Co., Ltd. | PT. Mutiara Jawa | Collateralized money invested | KRW | 1,373 | Woori Bank | |||||
Korea Western Power Co., Ltd. | Haeng Bok Do Si Photovoltaic Power Co., Ltd. | Collateralized money invested | KRW | 240 | Nonghyup Bank | |||||
Korea Western Power Co., Ltd. | Shin Pyeongtaek Power Co., Ltd. | Collateralized money invested | KRW | 62,449 | Kookmin Bank | |||||
Guarantees for supplemental funding (*1) | — | Kookmin Bank | ||||||||
Korea East-West Power Co., Ltd. | Busan Shinho Solar Power Co., Ltd. | Collateralized money invested | KRW | 4,916 | Korea Development Bank and others | |||||
Korea East-West Power Co., Ltd. | Seokmun Energy Co., Ltd. | Collateralized money invested | KRW | 17,236 | Kookmin Bank and others | |||||
Korea East-West Power Co., Ltd. | Chun-cheon Energy Co., Ltd. | Collateralized money invested | KRW | 37,619 | Kookmin Bank and others | |||||
Guarantees for supplemental funding (*1) | KRW | 20,000 | ||||||||
Korea East-West Power Co., Ltd. | Honam Wind Power Co., Ltd. | Collateralized money invested | KRW | 4,184 | Shinhan Bank and others | |||||
Korea East-West Power Co., Ltd. | GS Donghae Electric Power Co., Ltd. | Collateralized money invested | KRW | 250,617 | Korea Development Bank and others | |||||
Korea East-West Power Co., Ltd. | Yeonggwangbaeksu Wind Power Co., Ltd. | Collateralized money invested | KRW | 2,820 | Kookmin Bank and others | |||||
Korea East-West Power Co., Ltd. | Yeonggwang Wind Power Co., Ltd. | Collateralized money invested | KRW | 15,358 | KDB Capital Corporation and others | |||||
Korea East-West Power Co., Ltd. | Daesan Green Energy Co., Ltd. | Collateralized money invested | KRW | 17,291 | IBK | |||||
Korea East-West Power Co., Ltd. | Taebaek Gadeoksan Wind Power Co., Ltd. | Collateralized money invested | KRW | 8,002 | 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 | |||||||
Korea East-West Power Co., Ltd. | South Jamaica Power Company Limited | Performance guarantees | USD | 14,400 | Societe Generale | |||||
EWP Barbados 1 SRL | South Jamaica Power Company Limited | Guarantees for supplemental funding (*1, 3) | USD | 1,550 | JCSD Trustee Services Limited and others | |||||
Korea East-West Power Co., Ltd. | DE Energia SpA | Collateralized money invested | KRW | 8,990 | Mirae Asset Daewoo Co., Ltd. and others | |||||
Korea East-West Power Co., Ltd. | Debt guarantees | KRW | 6,881 | |||||||
Korea Southern Power Co., Ltd. | KNH Solar Co., Ltd. | Collateralized money invested | KRW | 2,079 | Shinhan Bank and Kyobo Life Insurance Co., Ltd. | |||||
Performance guarantees and guarantees for supplemental funding (*1) | — | |||||||||
Korea Southern Power Co., Ltd. | Daeryun Power Co., Ltd. | Collateralized money invested | KRW | 26,291 | Korea Development Bank and others | |||||
Guarantees for supplemental funding and others (*1) | — | |||||||||
Korea Southern Power Co., Ltd. | Daegu Green Power Co., Ltd. | Collateralized money invested | KRW | 42,601 | Shinhan Bank and others | |||||
Korea Southern Power Co., Ltd. | Kelar S.A | Performance guarantees | USD | 63,707 | Hana Bank, SMBC, Mizuho Bank, MUFG, Natixis | |||||
Korea Southern Power Co., Ltd. | Daehan Wind Power PSC | Debt guarantees | USD | 17,898 | Shinhan Bank, Hana Bank | |||||
Performance guarantees | USD | 3,000 | Shinhan Bank | |||||||
Guarantees for supplemental funding (*1) | — | Shinhan Bank | ||||||||
Korea Southern Power Co., Ltd. | Pyeongchang Wind Power Co., Ltd. | Collateralized money invested | KRW | 4,982 | Woori Bank and Shinhan Bank and others | |||||
Performance guarantees | — | Woori Bank and Shinhan Bank and others | ||||||||
Korea Southern Power Co., Ltd. | Taebaek Wind Power Co., Ltd. | Guarantees for supplemental funding (*1) | — | Shinhan Bank and others |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(7) | Guarantees provided to associates or joint ventures as of September 30, 2019 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. | Jeongam Wind Power Co., Ltd. | Collateralized money invested | KRW | 2,704 | IBK, SK Securities Co., Ltd. and others | |||||
Performance guarantees | — | |||||||||
Korea Southern Power Co., Ltd. | Samcheok Eco Materials Co., Ltd. | Payment guarantees (*7) | — | SEM Investment Co., Ltd. | ||||||
Korea Midland Power Co., Ltd. | Hyundai Green Power Co., Ltd. | Collateralized money invested | KRW | 129,834 | Korea Development Bank and others | |||||
Korea Midland Power Co., Ltd. | PT. Cirebon Electric Power | Debt guarantees | USD | 11,248 | Mizuho Bank | |||||
Korea Midland Power Co., Ltd. | PT. Wampu Electric Power | Debt guarantees | USD | 4,854 | SMBC | |||||
Korea Midland Power Co., Ltd. | YaksuESS Co., Ltd. | Collateralized money invested | KRW | 448 | IBK | |||||
Guarantees for supplemental funding (*1) | — | IBK | ||||||||
Korea Midland Power Co., Ltd. | Namjeongsusang Solar Power Operatin Co., Ltd. | Collateralized money invested | KRW | 849 | IBK | |||||
Korea Midland Power Co., Ltd. | YeongGwang Yaksu Wind Electric. Co., Ltd. | Collateralized money invested | KRW | 397 | IBK and others | |||||
Korea Midland Power Co., Ltd. | Green Energy Electricity Generation Co., Ltd. | Collateralized money invested | KRW | 496 | IBK | |||||
Guarantees for supplemental funding and others (*1) | — | IBK and others | ||||||||
Korea South-East Power Co., Ltd. | Hyundai Energy Co., Ltd. | Collateralized money invested | — | Korea Development Bank and others | ||||||
(*4) Guarantees for supplemental funding and others (*1,5) | KRW | 78,600 | ||||||||
Korea South-East Power Co., Ltd. | RES Technology AD | Collateralized money invested | KRW | 17,086 | UniCredit Bulbank and others | |||||
Korea South-East Power Co., Ltd. | ASM-BG Investicii AD | Collateralized money invested | KRW | 22,597 | UniCredit Bulbank and others | |||||
Korea South-East Power Co., Ltd. | Expressway Solar-light Power Generation Co., Ltd. | Guarantees for supplemental funding (*1,6) | KRW | 2,500 | Woori Bank | |||||
Korea South-East Power Co., Ltd. | S-Power Co., Ltd. | Collateralized money invested | KRW | 117,761 | Korea Development Bank and others | |||||
Korea South-East Power Co., Ltd. | Goseong Green Energy Co., Ltd. | Collateralized money invested | KRW | 2,381 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea South-East Power Co., Ltd. | Gangneung Eco Power Co., Ltd. | Collateralized money invested | KRW | 2,450 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea South-East Power Co., Ltd. | PND solar., Ltd. | Collateralized money invested | KRW | 1,304 | IBK and others | |||||
Korea South-East Power Co., Ltd. | Hyundai Eco Energy Co., Ltd. | Collateralized money invested | KRW | 3,485 | Samsung Life Insurance and others | |||||
Korea South-East Power Co., Ltd. | Jaeun Resident Wind Power Plant Co., Ltd. | Collateralized money invested | KRW | 2,313 | IBK | |||||
Korea South-East Power Co., Ltd. | Cheongsong Myeonbongsan Wind Power Plant Co., Ltd. | Collateralized money invested | KRW | 2,681 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea Hydro & Nuclear Power Co., Ltd. | Noeul Green Energy Co., Ltd. | Collateralized money invested | KRW | 7,776 | Hana Bank and others | |||||
Korea Hydro & Nuclear Power Co., Ltd. | Busan Green Energy Co., Ltd. | Collateralized money invested | KRW | 12,270 | Shinhan Bank and others | |||||
KEPCO Plant Service & Engineering Co., Ltd. | Incheon New Power Co., Ltd. | Collateralized money invested | KRW | 496 | Shinhan Bank | |||||
Guarantees for supplemental funding and others (*1) | — |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(7) | Guarantees provided to associates or joint ventures as of September 30, 2019 are as follows, continued: |
(*1) | The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings. |
(*2) | The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral. |
(*3) | This includes a guarantee for the shareholder’s capital payment in connection with the business of 190MW gas complex thermal power plant in Jamaica. EWP Barbados 1 SRL’s capital contribution amount is USD 18,090 thousand and the total amount of guarantees is USD 1,550 thousand which consists of USD 310 thousand of EWP Barbados 1 SRL’s contribution obligation and USD 1,240 thousand of South Jamaica Energy Holding Limited’s portion (50%) of contribution obligation. |
(*4) | The Group recognized an impairment loss on all of the equity securities of Hyundai Energy Co., Ltd. in prior years, and the acquisition cost of the securities provided as collateral is |
(*5) | Pursuant to the guarantee agreement, the Group recognized other provisions of |
(*6) | 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. |
(*7) | The Group has the obligation to purchase the stocks should preferred stockholders elect to sell their stocks on the expected sell date (3 years from preferred stock payment date) and is required to guarantee the promised yield when preferred stockholders sell their stocks. In relation to this guarantee, the Group has recognized |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
47. | Related Parties, Continued |
(8) | As of September 30, 2019, there is no financial guarantee contract provided by related parties. |
(9) | Derivatives transactions with related parties as of September 30, 2019 are as follows: |
(i) Currency Swap
In millions of won and thousands of foreign currencies | ||||||||||||||||||||||||
Counterparty | Contract year | Contract Amount | Contract interest rate per annum | Contract exchange rate (in won) | ||||||||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||||||||
Korea Development Bank | 2019~2024 | USD 150,000 | 1.24% | 2.50% | ||||||||||||||||||||
2016~2019 | 105,260 | USD 100,000 | 2.48% | 2.38% | 1,052.60 | |||||||||||||||||||
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 | |||||||||||||||||||
2017~2020 | 114,580 | USD 100,000 | 1.75% | 2.38% | 1,145.80 | |||||||||||||||||||
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 | |||||||||||||||||||
2018~2021 | 212,960 | USD 200,000 | 2.10% | 3.00% | 1,064.80 | |||||||||||||||||||
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 |
(ii) Currency forward
In millions of won and thousands of foreign currencies | ||||||||||||||||||||
Counterparty | Contract date | Maturity date | Contract amounts | Contract exchange rate (in won) | ||||||||||||||||
Pay | Receive | |||||||||||||||||||
Korea Development Bank | 2017.12.27 | 2021.07.12 | USD | 100,000 | ||||||||||||||||
2019.09.02 | 2019.10.07 | 8,477 | USD | 7,000 | 1,211.00 | |||||||||||||||
2019.09.17 | 2019.10.14 | 14,837 | USD | 12,500 | 1,186.98 | |||||||||||||||
2019.09.20 | 2019.10.14 | 6,547 | USD | 5,500 | 1,190.45 |
(10) | Salaries and other compensations to the key members of management of the Group for the nine-month periods ended September 30, 2019 and 2018 are as follows: |
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Type | Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | ||||||||||||
Salaries | 1,100 | 191 | 888 | |||||||||||||
Employee benefits | 11 | 15 | 3 | 21 | ||||||||||||
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1,115 | 194 | 909 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
48. | Non-Cash Transactions |
Significantnon-cash investing and financing transactions for the nine-month periods ended September 30, 2019 and 2018 are as follows:
In millions of won | ||||||||
Transactions | September 30, 2019 | September 30, 2018 | ||||||
Transfer fromconstruction-in-progress to other assets | 5,435,126 | |||||||
Recognition of asset retirement cost and related provision for decommissioning costs | 463,258 | 240,500 | ||||||
Transfer from provision for disposal of spent nuclear fuel to accrued expenses | 256,994 | 355,310 | ||||||
Recognition of litigation provisions in addition to property, plant and equipment | — | 185,530 | ||||||
Transfer ofright-of-use assets due to change in accounting policy | 4,994,477 | — |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
49. | Commitments for Expenditure |
(1) | The commitments for acquisition of property, plant and equipment as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||||
Contracts | Amounts | Balance | Amounts | Balance | ||||||||||||
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo) | 27,218 | 56,183 | 37,309 | |||||||||||||
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung) | 45,390 | 32,876 | 44,315 | 31,801 | ||||||||||||
Purchase of GIS (362KV, 6300A, 63KA) 23CB – Youngseo S/S | 36,143 | 36,143 | 34,500 | 34,500 | ||||||||||||
Purchase of GIS (362KV, 6300A, 63KA) 26CB – Hwasung S/S | 40,010 | 18,088 | 29,143 | 18,194 | ||||||||||||
Purchase of GIS (362KV, 6300A, 63KA) 27CB – Kwangyang S/S | 37,744 | 10,542 | 37,694 | 10,491 | ||||||||||||
Purchase of Concrete Poles (10M, 350KGF) 121,900 and 6 others | — | — | 133,387 | 13,343 | ||||||||||||
Purchase of cable (TRCNCE-W/AL, 1C, 400SQ) 3,504,000M | 66,240 | — | 66,240 | 38,998 | ||||||||||||
Purchase of cable (FRCNCO-W, 1C, 325SQ) 1,400,000 | 59,716 | 37,249 | 57,475 | 48,598 | ||||||||||||
Purchase of switch (Eco) 9,360 units | 40,631 | 24,031 | 40,631 | 34,797 | ||||||||||||
Purchase of cable (TRCNCE-W/AL, 1C, 400SQ) 2,654,400M | 36,063 | 24,102 | — | — | ||||||||||||
Construction of Shin-Kori units (#3,4) | 7,450,197 | — | 7,363,514 | 3,211 | ||||||||||||
Construction of Shin-Kori units (#5,6) | 8,625,387 | 5,132,948 | 8,625,387 | 5,930,099 | ||||||||||||
Construction of Shin-Hanul units (#1,2) | 7,982,342 | 49,471 | 7,982,342 | 355,704 | ||||||||||||
Other 31 contracts | 419,638 | 256,391 | 269,681 | 161,243 | ||||||||||||
Service of designing Seoul Combined units (#1,2) | 30,778 | 3,379 | 29,996 | 4,744 | ||||||||||||
Purchase of main machine for construction of Seoul Combined units (#1,2) | 365,385 | 20,097 | 365,164 | 51,165 | ||||||||||||
Construction of Seoul Combined units (#1,2) | 303,868 | 2,870 | 285,890 | 27,125 | ||||||||||||
Purchase of smoke eliminating machine for construction of Shin-Boryeong units (#1,2) | 174,467 | 1,006 | 172,609 | 13,986 | ||||||||||||
Service of designing Shin-Boryeong units (#1,2) | 120,668 | 888 | 120,199 | 1,076 | ||||||||||||
Purchase of main machine for construction of Shin-Boryeong units (#1,2) | 866,065 | 4,981 | 866,065 | 4,981 | ||||||||||||
Purchase of furnace for construction of Shin-Seocheon thermal power plant | 305,209 | 50,641 | 305,209 | 74,631 | ||||||||||||
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant | 104,402 | 15,880 | 104,402 | 57,968 | ||||||||||||
Electricity construction of Shin-Seocheon thermal power plant | 231,196 | 113,027 | 217,848 | 174,122 | ||||||||||||
Purchase of main machine for Jeju LNG combined | 166,287 | 6,249 | 166,287 | 11,272 | ||||||||||||
Purchase of coal handling machine for construction of Taean (#9,10) and IGCC units (conditional contract for installation) | 205,764 | 282 | 205,764 | 282 | ||||||||||||
Purchase of furnace for construction of Taean units (#9,10) | 556,206 | 18,040 | 556,504 | 18,502 | ||||||||||||
Service of designing Taean units (#9,10) | 112,483 | 13,476 | 112,344 | 13,338 | ||||||||||||
Purchase of turbine generator for construction of Taean units (#9,10) | 214,208 | 10,398 | 214,462 | 10,422 | ||||||||||||
Purchase of oxygen plant for construction of Taean IGCC units | 97,345 | 1,560 | 96,068 | 1,552 | ||||||||||||
Service of designing Taean IGCC plant units | 46,101 | 3,261 | 46,001 | 3,161 | ||||||||||||
Purchase of furnace for construction of Samcheok units (#1,2) | 1,092,287 | 11,710 | 1,092,287 | 12,215 | ||||||||||||
Purchase of coal handling machine for construction of Samcheok units (#1,2) | 311,220 | 42,785 | 307,925 | 48,736 | ||||||||||||
Purchase of turbine main equipment for Samcheok units (#1,2) | 212,188 | 125 | 212,188 | 348 | ||||||||||||
Purchase of main equipment for Namjeju | 146,594 | 84,982 | 146,594 | 134,949 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
49. | Commitments for Expenditure, Continued |
(2) | As of September 30, 2019, 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 | 2019 ~ 2030 | 38,990 Ton U3O8 | ||
Transformed | 2019 ~ 2030 | 21,969 Ton U | ||
Enrichment | 2019 ~ 2030 | 17,060 Ton SWU | ||
Molded (Light) | 2019 ~ 2020 | 756 Ton U | ||
Molded (Medium)) | 2019 ~ 2020 | 401 Ton U | ||
Molded (Initial core) | 2019 ~ 2022 | 415 Ton U |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
50. | Contingencies and Commitments |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of September 30, 2019 and December 31, 2018 are as follows: |
In millions of won | September 30, 2019 | December 31, 2018 | ||||||||||||
Number of cases | Claim amount | Number of cases | Claim amount | |||||||||||
As the defendant | 607 | 570 | ||||||||||||
As the plaintiff | 197 | 810,973 | 174 | 793,491 |
As of September 30, 2019, among the litigations mentioned above, there are ongoing litigations of KHNP, a subsidiary of KEPCO, against KEPCO Engineering & Construction Company, Inc., a subsidiary of KEPCO, as aco-defendant (one case amounting toW65,927 million).
A group of plaintiffs (consisting of 2,167 individuals) filed a lawsuit against NSSC regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal was ongoing as of September 30, 2019. 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. The Group joined these litigations as a stakeholder with the permission of the Court.
As of September 30, 2019, 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 for 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 outflow related to the obligation as of September 30, 2019.
The long-term service contract between Gyeonggi Green Energy Co., Ltd. (Gyeonggi Green Energy) and its fuel cell supplier expired during the year ended December 31, 2018. Gyeonggi Green Energy had been in negotiations to renew the contract as the creditors requested, and, as a result, Gyeonggi Green Energy renewed the long-term service contract with fuel cell supplier as of August 30, 2019. Accordingly, the Group has obtained approval from the creditors for long-term service contracts with the fuel cell supplier.
The Group is the defendant against a number of claims. The following is potentially significant ongoing claims pertaining to the Group.
In December 2013, the Supreme Court of Korea ruled that regular bonuses also fall under the category of ordinary wages on the condition that those bonuses are paid regularly and uniformly. Also, the Supreme Court ruled that employees are entitled to retroactively demand certain wages based on the new ordinary wages that include regular bonuses as additional wages. However, the request may be limited to the extent of the principle of good faith.
The Group believes that the possibility of economic benefit outflow is probable on the ongoing and the expected lawsuit. For this reason, the Group recognizedW26,882 million of other provision in relation to the lawsuit as of September 30, 2019.
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
50. | Contingencies and Commitments, Continued |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of September 30, 2019 and December 31, 2018 are as follows, continued: |
Except these significant ongoing claims, there are 11 arbitration cases pertaining to the Group as of September 30, 2019 and the significant arbitration cases for the nine-month period ended September 30, 2019 are as follows:
① | LS Cable & System Ltd., a construction company for undersea cable construction, filed an arbitration against the Group regarding disagreements in the test failure handling 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. |
② | KEPCO and KEPCO KDN Co., Ltd., a subsidiary of KEPCO, have been accused of breach of contract in relation to ERP software, which is provided by SAP Korea Ltd. The litigation was filed in the International Chamber of Commerce International Court of Arbitration, 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. |
③ | In 2016, Hyundai E&C, GS Engineering & Construction Corp. and Hansol SeenTec Co., Ltd. filed an arbitration against the Group to the Korea Commercial Arbitration Board in relation to the request for additional construction costs. As described in Note 27.(2), the Group recognized the litigation provisions of |
④ | In 2016, Halla Corporation filed an arbitration against the Group to the Korea Commercial Arbitration Board in relation to the request for additional construction costs and the Group filed an arbitration against Halla Corporation to the Korea Commercial Arbitration Board in relation to the request for a penalty payment for the delayed construction work. The Group has recognized |
⑤ | The Group has filed for arbitration against IL KWANG E&C Co., Ltd. to the Korea Commercial Arbitration Board, in relation to damage claims received as of September 30, 2019. |
⑥ | In connection with 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) | Guarantees of payments and commitments provided to other companies as of September 30, 2019 are as follows: |
① | In order to secure its status as a shareholder of Navanakorn Electric Co., Ltd., the Group has signed a fund supplement contract. According to the contract, in case Navanakorn Electric Co., Ltd. does not have sufficient funds for its operation or repayment of borrowings, the Group bears a payment obligation in proportion to its ownership. |
② | The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. 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. |
③ | The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and Mizuho bank and others investment guarantee up to USD 43,500 thousand 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. |
④ | The Group has provided MUFG Bank, Ltd. (MUFG) (formerly, the Bank of Tokyo Mitsubishi UFJ. Ltd. (BTMU)) borrowing guarantee up to USD 41,258 thousand proportion to its ownership in the equity bridge loan guarantee with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia. |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
50. | Contingencies and Commitments, Continued |
(2) | Guarantees of payments and commitments provided to other companies as of September 30, 2019 and December 31, 2018 are as follows, continued: |
⑤ | The Group has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank guarantee 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. |
⑥ | The Group has provided the Export-Import Bank of Korea and SMBC guarantee of mutual investment of USD 401 thousand, which is equivalent to the ownership interest of PT Mega Power Mandiri, in order to guarantee the expenses related to hydroelectric power business of PT. Wampu Electric Power, an associate of the Group. |
⑦ | The Group is obligated to complete the responsibility as a construction company for the construction of the waste oil refining for power generation business of Next energy Co., Ltd. (contract amount : |
(3) | Credit lines provided by financial institutions as of September 30, 2019 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||
Commitments | Financial institutions | Currency | Limited amount | |||||||
Commitments on Bank-overdraft | Nonghyup Bank and others | KRW | 1,825,000 | |||||||
Commitments on Bank-daylight overdraft | Nonghyup Bank | KRW | 280,000 | |||||||
Limit amount available for CP | Hana Bank and others | KRW | 1,050,000 | |||||||
Limit amount available for card | Hana Bank and others | KRW | 53,904 | |||||||
Banco de Oro | PHP | 5,000 | ||||||||
Loan limit | Kookmin Bank and others | KRW | 1,153,900 | |||||||
DBS Bank and others | USD | 2,522,700 | ||||||||
Certification of payment on payables from foreign country | Nonghyup Bank | USD | 4,680 | |||||||
Certification of payment on L/C | Shinhan Bank | KRW | 7,749 | |||||||
Shinhan Bank and others | USD | 877,434 | ||||||||
Certification of Performance guarantee on contract | Hana Bank and others | EUR | 4,158 | |||||||
Hana Bank and others | INR | 268,353 | ||||||||
Korea Development Bank and others | JPY | 637,322 | ||||||||
Seoul Guarantee Insurance and others | KRW | 193,150 | ||||||||
First Abu Dhabi Bank and others | USD | 843,690 | ||||||||
Hana Bank | SAR | 6,508 | ||||||||
Hana Bank | CAD | 464 | ||||||||
Certification of bidding | Hana Bank and others | USD | 110,000 | |||||||
Shinhan Bank | ZAR | 55,730 | ||||||||
Advance payment bond, Warranty bond, Retention bond and others | Export-Import Bank of Korea and others | USD | 4,306,464 | |||||||
Others | Shinhan Bank | JPY | 381,210 | |||||||
Nonghyup Bank and others | KRW | 317,771 | ||||||||
Export-Import Bank of Korea and others | USD | 1,190,844 | ||||||||
Inclusive credit | Shinhan Bank | INR | 70,028 | |||||||
Hana Bank | KRW | 258,000 | ||||||||
Hana Bank and others | USD | 31,183 | ||||||||
Trade finance | BNP Paribas and others | USD | 700,000 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
50. | Contingencies and Commitments, Continued |
(4) | As of September 30, 2019, 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) | |||||||
SE Green Energy Co., Ltd. | DB Insurance Co., Ltd. and others | Property, plant and equipment and others | KRW | 149,500 | Collateral for borrowings (*2) | |||||||
Gyeonggi Green Energy Co., Ltd. | Korea Development Bank and others | Cash and cash equivalents | KRW | 327,080 | Collateral for borrowings (*2) | |||||||
Commerce and Industry Energy Co., Ltd. | IBK and others | Land, buildings, structures and machinery and others | KRW | 110,500 | Collateral for borrowings (*2) | |||||||
KOSPO Youngnam Power Co., Ltd. | Shinhan Bank and others | Cash and cash equivalents | 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 | Utility plant and others | KRW | 293,400 | Collateral for borrowings (*2) | |||||||
Qatrana Electric Power Company | The Islamic Development Bank and others | Finance lease receivable and property, plant and equipment and others | JOD | 236,570 | Collateral for borrowings (*1) | |||||||
KST Electric Power Company | The Export – Import Bank of Korea and others | Finance lease receivable and property, plant and equipment and others | USD | 337,000 | Collateral for borrowings (*1) |
(*1) | This is based on the amount of loan commitment limit. |
(*2) | As of September 30, 2019, 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 hasW1,197 million of project loans from Korea Energy Agency as of September 30, 2019. The Group has provided a blank check as repayment guarantee.
(5) | The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
50. | Contingencies and Commitments, Continued |
(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 September 30, 2019. The book value of facility is |
(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. |
51. | Subsequent Events |
(1) | Changes in investment shares |
On October 21, 2019, Korea East-West Power Co., Ltd., sold off all of its shares in Ulsan GPS Co., Ltd., which was classified as assets held for sale as of September 30, 2019, and purchased shares of Eumseong Natural Gas Power Co., Ltd. to hold a 100% interest. Accordingly, Korea East-West Power Co., Ltd., signed a merger agreement with Eumseong Natural Gas Power Co., Ltd. on October 24, 2019.
(2) | Issue of corporate bonds |
Subsequent to September 30, 2019, Korea Hydro & Nuclear Power Co., Ltd., Korea Midland Power Co., Ltd. and Korea Southern Power Co., Ltd. issued a foreign bond and corporate bonds for funding debt repayment, facility investments, and operations as follows:
In millions of won and thousands of foreign currencies | ||||||||||||
Company | Type | Issue date | Maturity | Interest rate | Amount | |||||||
Korea Hydro & Nuclear Power Co., Ltd. | #53-1 Corporate bond | 2019.10.16 | 2024.10.16 | 1.53% | KRW | 60,000 | ||||||
#53-2 Corporate bond | 2019.10.16 | 2039.10.16 | 1.59% | KRW | 100,000 | |||||||
#53-3 Corporate bond | 2019.10.16 | 2049.10.16 | 1.58% | KRW | 90,000 | |||||||
Korea Midland Power Co., Ltd. | #51-1 non-guaranteed corporate bond | 2019.10.30 | 2029.10.30 | 1.95% | KRW | 50,000 | ||||||
#51-2non-guaranteed corporate bond | 2019.10.30 | 2039.10.30 | 1.92% | KRW | 80,000 | |||||||
#52-1non-guaranteed corporate bond | 2019.11.13 | 2029.11.13 | 2.00% | KRW | 140,000 | |||||||
#52-2non-guaranteed corporate bond | 2019.11.13 | 2049.11.13 | 1.86% | KRW | 80,000 | |||||||
Korea Southern Power Co., Ltd. | #19 Kangaroo bond | 2019.10.30 | 2024.10.30 | 3M BBSW+97bp | AUD | 300,000 |
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Notes to the Consolidated Interim Financial Statements, Continued
For the nine-month periods ended September 30, 2019 and 2018
(Unaudited)
52. | 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 statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the nine-month periods ended September 30, 2019 and 2018 to the operating profit or loss as presented in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.
In millions of won | September 30, 2019 | September 30, 2018 | ||||||||||||||
Three-month period ended | Nine-month period ended | Three-month period ended | Nine-month period ended | |||||||||||||
Operating profit on consolidated interim statements of comprehensive income | 310,726 | 1,395,215 | 580,484 | |||||||||||||
Add | ||||||||||||||||
Other income | ||||||||||||||||
Reversal of other provisions | 1,331 | 3,517 | 649 | 2,126 | ||||||||||||
Gains on government grants | 62 | 201 | 66 | 211 | ||||||||||||
Gains on assets contributed | 20 | 2,791 | 3,735 | 4,153 | ||||||||||||
Gains on liabilities exempted | 119 | 838 | 164 | 7,185 | ||||||||||||
Compensation and reparations revenue | 80,860 | 119,524 | 19,997 | 62,751 | ||||||||||||
Revenue from research contracts | 1,952 | 4,529 | 2,667 | 5,511 | ||||||||||||
Rental income | 47,150 | 141,201 | 45,199 | 138,537 | ||||||||||||
Others | 15,026 | 45,076 | 8,797 | 39,449 | ||||||||||||
Other gains | ||||||||||||||||
Gains on disposal of property, plant and equipment | 6,578 | 35,765 | 64,769 | 91,132 | ||||||||||||
Gains on disposal of intangible assets | 109 | 206 | 8 | 11 | ||||||||||||
Gains on foreign currency translation | 42,953 | 11,108 | 17,128 | 12,925 | ||||||||||||
Gains on foreign currency transaction | 13,129 | 30,295 | 9,883 | 33,089 | ||||||||||||
Gains on insurance proceeds | 4,199 | 4,212 | — | — | ||||||||||||
Others | 46,870 | 157,106 | 38,787 | 145,605 | ||||||||||||
Deduct | ||||||||||||||||
Other expenses | ||||||||||||||||
Compensation and reparations expense | (19 | ) | (96 | ) | (2,329 | ) | (21,617 | ) | ||||||||
Accretion expenses of other provisions | (2,601 | ) | (2,984 | ) | (64 | ) | (254 | ) | ||||||||
Depreciation expenses on investment properties | (380 | ) | (4,671 | ) | (209 | ) | (717 | ) | ||||||||
Depreciation expenses on idle assets | (1,634 | ) | (4,906 | ) | (1,637 | ) | (4,911 | ) | ||||||||
Other bad debt expense | (1,585 | ) | (7,281 | ) | 7,976 | (3,477 | ) | |||||||||
Donations | (14,239 | ) | (41,802 | ) | (14,480 | ) | (33,438 | ) | ||||||||
Others | (7,108 | ) | (16,964 | ) | (10,169 | ) | (54,020 | ) | ||||||||
Other losses | ||||||||||||||||
Losses on disposal of property, plant and equipment | (16,540 | ) | (43,287 | ) | (14,474 | ) | (27,874 | ) | ||||||||
Losses on disposal of intangible assets | (28 | ) | (28 | ) | (18 | ) | (23 | ) | ||||||||
Losses on impairment of property, plant and | (7,467 | ) | (37,152 | ) | — | (701,317 | ) | |||||||||
Losses on impairment of intangible assets | (451,823 | ) | (513,519 | ) | — | — | ||||||||||
Losses on foreign currency translation | — | (8,669 | ) | (2,164 | ) | (5,150 | ) | |||||||||
Losses on foreign currency transaction | (14,609 | ) | (43,524 | ) | (18,608 | ) | (51,981 | ) | ||||||||
Others | (37,510 | ) | (75,328 | ) | (12,248 | ) | (44,623 | ) | ||||||||
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Adjusted operating profit | 66,884 | 1,538,640 | 173,767 | |||||||||||||
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