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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 March 2020
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- .
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On March 17, 2020, Korea Electric Power Corporation filed its audit report for the fiscal year 2019 prepared in accordance with Korean International Financial Reporting Standards(K-IFRS) as attached. The financial statements in such report have not been approved by the shareholders of Korean Electric Power Corporation and remain subject to change.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By: /s/ Kim, Byung-in | ||
Name: Kim, Byung-in | ||
Title: Vice President |
Date: March 17, 2020
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KOREA ELECTRIC POWER CORPORATION
AND ITS SUBSIDIARIES
Consolidated Financial Statements
December 31, 2019
(With Independent Auditor’s Report Thereon)
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Ernst & Young Han Young Taeyoung Building, 111, Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 150-777 Korea
Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr |
Based on a report originally issued in Korean
The Board of Directors and Shareholders
Korea Electric Power Corporation:
Opinion
We have audited the consolidated statement of financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred to as the “Group” ), which comprise the consolidated statements of financial position as of December 31, 2019 and the consolidated statements of comprehensive income (loss), consolidated statements of changes in equity and consolidated statements of cash flows for the year then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2019, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“KIFRS”).
Basis for Opinion
We conducted our audits in accordance with Korean Auditing Standards (KGAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements as of and for the year ended December 31, 2019. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
• | Impairment of property, plant and equipment (“PP&E”) |
As discussed in Note 3.(14) to the consolidated financial statements, at each reporting date, management assesses if any indicator of impairment for its PP&E exists. If there is an impairment indicator for a cash-generating unit (“CGU”), management compares the recoverable amount of the CGU with its carrying value to determine if the PP&E which are allocated to the respective CGU are impaired.
In view of the significant difference between the Group’s market capitalization and its consolidated net assets carrying amount, management determined that an indicator of impairment of the Group’s PP&E existed as of December 31, 2019, which is attributed to the CGU of the electricity transmission and distribution business.
Management performed an impairment assessment of the Group’s PP&E allocated to CGU by comparing the carrying amount of the CGU with itsvalue-in-use (VIU) which is determined based on discounted cash flow forecasts. Preparing the VIU estimation requires management to exercise significant judgment, particularly in relation to estimating future sales volumes, unit sales price, cost of power purchase, and discount rate. We have identified the assessment of impairment of PP&E in the electricity transmission and distribution business as a key audit matter because the carrying value of these assets are significant to the consolidated financial statements and also because estimation using a discounted cash flow forecast is complex and involves the exercise of significant management judgment in estimating the variable inputs, which can be inherently uncertain and could be subject to management bias.
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The primary audit procedures we performed to address this key audit matter are as follows:
• | We identified and tested key internal controls relating to the Group’s assessment of impairment of PP&E. |
• | We assessed management’s identification of CGU and the allocation of assets to each CGU with reference to our understanding of the Group’s business |
• | We compared the forecasts included in the prior year’s discounted cash flow forecasts to the current year’s actual performance in order to assess the appropriateness of the estimates. |
• | We involved an internal valuation specialist to assist us in assessing the discount rate applied by management in comparison with our recalculated rate using both market and entity-specific information. |
• | We obtained the Group’s business plan and external data for major unobservable inputs such as future sales volumes, unit sales price and cost of power purchase, used in estimating VIU, and considered whether there were any indicators of management bias. |
• | We evaluated the management’s sensitivity analyses on the discount rate applied to the discounted cash flow forecasts and assessed the impact of changes in the key assumptions to the conclusions reached in the impairment assessments and whether there were any indicators of management bias. |
Other Matters
The consolidated financial statements as of December 31, 2018, has been audited by a predecessor auditor in accordance with KGAAS (not presented herein), whose report dated March 11, 2019, expressed an unqualified opinion. The accompanying consolidated financial statements as of December 31, 2018 presented for comparative purpose is not different, in all material respects, from the above audited consolidated financial statements.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KGAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with KGAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• | Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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• | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. |
• | Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management. |
• | Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. |
• | Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
• | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The partner in charge of the audit resulting in this independent auditor’s report is Jungik Park.
March 17, 2020
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This report is effective as of March 17, 2020, the independent auditor’s report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the auditor’s report date to the time this report is used. Such events and circumstances could significantly affect the accompanying consolidated financial statements and may result in modifications to report.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2019 and 2018
In millions of won | Note | 2019 | 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 | 1,586,509 | 2,359,895 | |||||||||
Trade and other receivables, net | 5,8,20,24,45,46,47 | 7,701,452 | 7,793,592 | |||||||||
Inventories, net | 14 | 7,050,700 | 7,188,253 | |||||||||
Income tax receivables | 41 | 99,718 | 143,214 | |||||||||
Currentnon-financial assets | 15 | 1,206,377 | 878,888 | |||||||||
Assetsheld-for-sale | 42 | 28,116 | 22,881 | |||||||||
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Total current assets | 19,483,001 | 19,745,068 | ||||||||||
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Non-current assets | ||||||||||||
Non-current financial assets, net | 5,6,9,10,11,12,13,45 | 2,563,498 | 2,113,613 | |||||||||
Non-current trade and other receivables, net | 5,8,20,45,46,47 | 2,002,297 | 1,819,845 | |||||||||
Property, plant and equipment, net | 18,24,27,49 | 164,701,827 | 152,743,194 | |||||||||
Investment properties, net | 19,27 | 158,580 | 159,559 | |||||||||
Goodwill | 16,51 | 97,977 | 2,582 | |||||||||
Intangible assets other than goodwill, net | 21,27,46 | 1,069,976 | 1,225,942 | |||||||||
Investments in associates | 4,17 | 4,251,802 | 4,064,820 | |||||||||
Investments in joint ventures | 4,17 | 1,663,029 | 1,813,525 | |||||||||
Defined benefit assets, net | 25 | 1,047 | — | |||||||||
Deferred tax assets | 41 | 1,437,829 | 1,233,761 | |||||||||
Non-currentnon-financial assets | 15 | 166,929 | 327,152 | |||||||||
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Totalnon-current assets | 178,114,791 | 165,503,993 | ||||||||||
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Total Assets | 4 | 185,249,061 | ||||||||||
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(Continued)
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Financial Position, Continued
As of December 31, 2019 and 2018
In millions of won | Note | 2019 | 2018 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables, net | 5,22,24,45,47 | 6,405,395 | ||||||||||
Current financial liabilities, net | 5,12,23,45,47 | 8,930,903 | 7,981,879 | |||||||||
Income tax payables | 41 | 358,277 | 285,420 | |||||||||
Currentnon-financial liabilities | 20,28,29 | 5,688,353 | 5,574,041 | |||||||||
Current provisions | 26,45 | 2,604,721 | 1,594,798 | |||||||||
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Total current liabilities | 24,231,656 | 21,841,533 | ||||||||||
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Non-current liabilities | ||||||||||||
Non-current trade and other payables, net | 5,22,24,45,47 | 6,965,760 | 2,941,696 | |||||||||
Non-current financial liabilities, net | 5,12,23,45,47 | 59,115,598 | 53,364,911 | |||||||||
Non-currentnon-financial liabilities | 28,29 | 8,834,452 | 8,160,033 | |||||||||
Employee benefits liabilities, net | 25,45 | 1,929,854 | 1,645,069 | |||||||||
Deferred tax liabilities | 41 | 8,564,775 | 9,617,309 | |||||||||
Non-current provisions | 26,45 | 19,066,048 | 16,585,748 | |||||||||
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Totalnon-current liabilities | 104,476,487 | 92,314,766 | ||||||||||
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Total Liabilities | 4 | 114,156,299 | ||||||||||
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Equity | ||||||||||||
Contributed capital | 1,30,45 | |||||||||||
Share capital | 3,209,820 | |||||||||||
Share premium | 843,758 | 843,758 | ||||||||||
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4,053,578 | 4,053,578 | |||||||||||
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Retained earnings | 31 | |||||||||||
Legal reserves | 1,604,910 | 1,604,910 | ||||||||||
Voluntary reserves | 34,785,425 | 35,906,267 | ||||||||||
Unappropriated retained earnings | 12,811,798 | 14,007,942 | ||||||||||
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49,202,133 | 51,519,119 | |||||||||||
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Other components of equity | 34 | |||||||||||
Other capital surplus | 1,226,364 | 1,234,825 | ||||||||||
Accumulated other comprehensive loss | (280,730 | ) | (358,570 | ) | ||||||||
Other equity | 13,294,973 | 13,294,973 | ||||||||||
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14,240,607 | 14,171,228 | |||||||||||
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Equity attributable to owners of the controlling company | 67,496,318 | 69,743,925 | ||||||||||
Non-controlling interests | 16,33 | 1,393,331 | 1,348,837 | |||||||||
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Total Equity | 71,092,762 | |||||||||||
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Total Liabilities and Equity | 185,249,061 | |||||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2019 and 2018
In millions of won, except per share information | Note | 2019 | 2018 | |||||||||
Sales | 4,35,45,47 | |||||||||||
Sales of goods | 57,897,804 | |||||||||||
Sales related to provision of services | 408,290 | 392,867 | ||||||||||
Sales related to construction contracts | 20 | 1,264,916 | 1,742,391 | |||||||||
Income related to transfer of assets from customers | 28 | 604,808 | 594,548 | |||||||||
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59,172,890 | 60,627,610 | |||||||||||
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Cost of sales | 14,25,43,47 | |||||||||||
Cost of sales of goods | (55,750,468 | ) | (55,976,628 | ) | ||||||||
Cost of sales related to provision of services | (1,030,601 | ) | (592,224 | ) | ||||||||
Cost of sales related to construction contracts | (998,766 | ) | (1,638,869 | ) | ||||||||
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(57,779,835 | ) | (58,207,721 | ) | |||||||||
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Gross profit | 1,393,055 | 2,419,889 | ||||||||||
Selling and administrative expenses | 25,36,43,47 | (2,669,576 | ) | (2,627,890 | ) | |||||||
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Operating Loss | 4 | (1,276,521 | ) | (208,001 | ) | |||||||
Othernon-operating income | 37 | 393,165 | 375,346 | |||||||||
Othernon-operating expense | 37 | (241,913 | ) | (231,330 | ) | |||||||
Other gains (losses), net | 38 | (582,258 | ) | (621,124 | ) | |||||||
Finance income | 5,12,39 | 1,009,706 | 796,870 | |||||||||
Finance expenses | 5,12,40 | (2,782,156 | ) | (2,470,743 | ) | |||||||
Profit (loss) related to associates, joint ventures and subsidiaries | 4,16,17 | |||||||||||
Share in profit of associates and joint ventures | 257,673 | 473,269 | ||||||||||
Gain on disposal of investments in associates and joint ventures | 70,094 | 5,079 | ||||||||||
Gain on disposal of investments in subsidiaries | — | 73 | ||||||||||
Share in loss of associates and joint ventures | (90,853 | ) | (110,168 | ) | ||||||||
Loss on disposal of investments in associates and joint ventures | (2 | ) | (2,183 | ) | ||||||||
Impairment loss on investments in associates and joint ventures | (22,517 | ) | (7,907 | ) | ||||||||
Loss on disposal of investments in subsidiaries | (256 | ) | — | |||||||||
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214,139 | 358,163 | |||||||||||
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Loss before income tax | (3,265,838 | ) | (2,000,819 | ) | ||||||||
Income tax benefit (expense) | 41 | 1,002,303 | 826,321 | |||||||||
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Net loss for the year | (1,174,498 | ) |
(Continued)
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss), Continued
For the years ended December 31, 2019 and 2018
In millions of won, except per share information | Note | 2019 | 2018 | |||||||||
Other comprehensive income (loss) | 5,12,25,31,34 | |||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||
Remeasurement of defined benefit liability, net of tax | 25,31 | (108,169 | ) | |||||||||
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax | 31 | (6,789 | ) | (1,153 | ) | |||||||
Net change in fair value of financial assets at fair value through other comprehensive income (loss) | 34 | (11,732 | ) | (34,185 | ) | |||||||
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 | 19,242 | 211 | |||||||||
Foreign currency translation of foreign operations, net of tax | 34 | 72,816 | (20,717 | ) | ||||||||
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax | 34 | 19,344 | 57,088 | |||||||||
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Other comprehensive gain (loss), net of tax | 135,196 | (106,925 | ) | |||||||||
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Total comprehensive loss for the period | (1,281,423 | ) | ||||||||||
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Loss attributable to: | ||||||||||||
Owners of the controlling company | 44 | (1,314,567 | ) | |||||||||
Non-controlling interests | 81,982 | 140,069 | ||||||||||
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(1,174,498 | ) | |||||||||||
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Total comprehensive loss attributable to: | ||||||||||||
Owners of the controlling company | (1,426,477 | ) | ||||||||||
Non-controlling interests | 110,808 | 145,054 | ||||||||||
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(1,281,423 | ) | |||||||||||
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Loss per share (in won) | 44 | |||||||||||
Basic and diluted earnings (loss) per share | (2,048 | ) |
The accompanying notes are an integral part of the consolidated financial statements.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2019 and 2018
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 | ) | |||||||||||||||
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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 year | ||||||||||||||||||||||||
Net profit (loss) for the year | — | (1,314,567 | ) | — | (1,314,567 | ) | 140,069 | (1,174,498 | ) | |||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | — | (100,495 | ) | — | (100,495 | ) | (7,674 | ) | (108,169 | ) | ||||||||||||||
Share in other comprehensive income of equity-accounted associates and joint ventures, net of tax | — | (1,153 | ) | — | (1,153 | ) | — | (1,153 | ) | |||||||||||||||
Net change in fair value of financial assets at fair value through other comprehensive income | — | — | (34,125 | ) | (34,125 | ) | (60 | ) | (34,185 | ) | ||||||||||||||
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 | — | — | (1,140 | ) | (1,140 | ) | 1,351 | 211 | ||||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | (32,086 | ) | (32,086 | ) | 11,369 | (20,717 | ) | |||||||||||||||
Share in other comprehensive income of equity-accounted associates and joint ventures, net of tax | — | — | 57,089 | 57,089 | (1 | ) | 57,088 | |||||||||||||||||
Transactions with owners of the Group, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | (507,152 | ) | — | (507,152 | ) | (92,741 | ) | (599,893 | ) | ||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | 1,032 | 1,032 | 17,183 | 18,215 | ||||||||||||||||||
Changes in consolidation scope | — | — | — | — | 9,530 | 9,530 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (13,385 | ) | (13,385 | ) | ||||||||||||||||
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Balance at December 31, 2018 | 51,519,119 | 14,171,228 | 69,743,925 | 1,348,837 | 71,092,762 | |||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Changes in Equity, Continued
For the years ended December 31, 2019 and 2018
In millions of won | Equity attributable to owners of the controlling company | Non- controlling interests | ||||||||||||||||||||||
Contributed capital | Retained earnings | Other components of equity | Subtotal | Total equity | ||||||||||||||||||||
Balance 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 year | ||||||||||||||||||||||||
Net profit (loss) for the year | — | (2,345,517 | ) | — | (2,345,517 | ) | 81,982 | (2,263,535 | ) | |||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | — | 36,160 | — | 36,160 | 6,155 | 42,315 | ||||||||||||||||||
Share in other comprehensive loss of equity-accounted associates and joint ventures, net of tax | — | (6,789 | ) | — | (6,789 | ) | — | (6,789 | ) | |||||||||||||||
Net change in fair value of financial assets at fair value through other comprehensive loss | — | — | (11,732 | ) | (11,732 | ) | — | (11,732 | ) | |||||||||||||||
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 | — | — | 14,041 | 14,041 | 5,201 | 19,242 | ||||||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | 55,347 | 55,347 | 17,469 | 72,816 | ||||||||||||||||||
Share in other comprehensive income of equity-accounted associates and joint ventures, net of tax | — | — | 19,343 | 19,343 | 1 | 19,344 | ||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | — | — | — | (99,255 | ) | (99,255 | ) | ||||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | — | — | 21,071 | 21,071 | ||||||||||||||||||
Transactions between consolidated entities | — | — | (8,460 | ) | (8,460 | ) | 323 | (8,137 | ) | |||||||||||||||
Changes in consolidation scope | — | — | — | — | 24,932 | 24,932 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (13,385 | ) | (13,385 | ) | ||||||||||||||||
Others | — | (840 | ) | 840 | — | — | — | |||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2019 | 49,202,133 | 14,240,607 | 67,496,318 | 1,393,331 | 68,889,649 | |||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
6
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2019 and 2018
In millions of won | 2019 | 2018 | ||||||
Cash flows from operating activities | ||||||||
Net loss for the year | (1,174,498 | ) | ||||||
|
|
|
| |||||
Adjustments to reconcile net loss to net cash flows provided by operating activities: | ||||||||
Income tax expense (benefit) | (1,002,303 | ) | (826,321 | ) | ||||
Depreciation | 10,971,825 | 9,905,856 | ||||||
Amortization | 156,915 | 118,938 | ||||||
Employee benefit expense | 725,120 | 360,575 | ||||||
Bad debt expense | 16,629 | 57,468 | ||||||
Interest expense | 2,046,811 | 1,868,458 | ||||||
Loss on sale of financial assets | 2,106 | 1 | ||||||
Loss on disposal of property, plant and equipment | 72,508 | 60,704 | ||||||
Loss on abandonment of property, plant, and equipment | 364,233 | 481,176 | ||||||
Loss on impairment of property, plant, and equipment | 50,034 | 710,162 | ||||||
Loss on impairment of intangible assets | 513,609 | 8,112 | ||||||
Loss on disposal of intangible assets | 827 | 43 | ||||||
Increase in provisions | 2,301,215 | 1,056,994 | ||||||
Loss (gain) on foreign currency translation, net | 370,309 | 243,378 | ||||||
Gain on valuation of financial assets at fair value through profit or loss | (5,575 | ) | (8,495 | ) | ||||
Loss on valuation of financial assets at fair value through profit or loss | 4,513 | 6,616 | ||||||
Valuation and transaction loss (gain) on derivative instruments, net | (403,765 | ) | (300,500 | ) | ||||
Share in loss (income) of associates and joint ventures, net | (166,820 | ) | (363,101 | ) | ||||
Gain on sale of financial assets | (3,866 | ) | (1,838 | ) | ||||
Gain on disposal of property, plant and equipment | (43,784 | ) | (98,077 | ) | ||||
Gain on disposal of intangible assets | (206 | ) | (12 | ) | ||||
Gain on disposal of associates and joint ventures | (70,094 | ) | (5,079 | ) | ||||
Loss on disposal of associates and joint ventures | 2 | 2,183 | ||||||
Impairment loss on associates and joint ventures | 22,517 | 7,907 | ||||||
Gain on disposal of subsidiaries | — | (72 | ) | |||||
Loss on disposal of subsidiaries | 256 | — | ||||||
Interest income | (268,118 | ) | (223,767 | ) | ||||
Dividend income | (13,838 | ) | (12,777 | ) | ||||
Others, net | 128,237 | 81,317 | ||||||
|
|
|
| |||||
15,769,297 | 13,129,849 | |||||||
|
|
|
| |||||
Changes in operating assets and liabilities: | ||||||||
Trade receivables | 95,345 | 246,755 | ||||||
Non-trade receivables | 64,027 | 154,580 | ||||||
Accrued income | 83,589 | (484,718 | ) | |||||
Other receivables | (116,583 | ) | (61,961 | ) | ||||
Other current assets | (271,986 | ) | (148,509 | ) | ||||
Inventories | (980,216 | ) | (1,771,550 | ) | ||||
Othernon-current assets | (611,066 | ) | (54,148 | ) | ||||
Trade payables | (546,159 | ) | 478,744 | |||||
Non-trade payables | 192,506 | (292,912 | ) | |||||
Accrued expenses | (454,501 | ) | (361,204 | ) | ||||
Other current liabilities | 373,403 | 250,112 | ||||||
Othernon-current liabilities | 650,468 | 287,488 | ||||||
Investments in associates and joint ventures (dividends received) | 215,612 | 175,175 | ||||||
Provisions | (1,473,461 | ) | (1,132,969 | ) | ||||
Payments of employee benefit obligations | (65,242 | ) | (89,253 | ) | ||||
Plan assets | (348,386 | ) | (330,064 | ) | ||||
|
|
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| |||||
(3,134,434 | ) | |||||||
|
|
|
|
(Continued)
7
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2019 and 2018
In millions of won | 2019 | 2018 | ||||||
Cash generated from operating activities | 8,820,917 | |||||||
Dividends received (financial assets at fair value through other comprehensive income) | 24,255 | 11,182 | ||||||
Interest paid | (2,027,850 | ) | (1,895,898 | ) | ||||
Interest received | 186,122 | 194,221 | ||||||
Income taxes paid | (282,211 | ) | (450,290 | ) | ||||
|
|
|
| |||||
Net cash provided by operating activities | 8,213,428 | 6,680,132 | ||||||
|
|
|
| |||||
Cash flows from investing activities | ||||||||
Proceeds from disposals of associates and joint ventures | — | 1,617 | ||||||
Acquisition of associates and joint ventures | (107,821 | ) | (319,425 | ) | ||||
Proceeds from disposals of property, plant and equipment | 522,742 | 234,138 | ||||||
Acquisition of property, plant and equipment | (14,000,359 | ) | (12,266,870 | ) | ||||
Proceeds from disposals of intangible assets | 7,702 | 13 | ||||||
Acquisition of intangible assets | (229,426 | ) | (110,587 | ) | ||||
Proceeds from disposals of financial assets | 2,783,474 | 2,419,259 | ||||||
Acquisition of financial assets | (2,165,342 | ) | (2,841,651 | ) | ||||
Increase in loans | (335,773 | ) | (188,675 | ) | ||||
Collection of loans | 292,745 | 100,010 | ||||||
Increase in deposits | (280,637 | ) | (299,564 | ) | ||||
Decrease in deposits | 275,314 | 259,930 | ||||||
Proceeds from disposals of assetsheld-for-sale | 30,662 | 18,716 | ||||||
Receipt of government grants | 21,705 | 30,416 | ||||||
Cash outflow from merger | (154,311 | ) | — | |||||
Net cash inflow (outflow) from changes in consolidation scope | (2,917 | ) | 2,141 | |||||
Other cash inflow (outflow) from investing activities, net | (157,116 | ) | (53,769 | ) | ||||
|
|
|
| |||||
Net cash used in investing activities | (13,499,358 | ) | (13,014,301 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities | ||||||||
Proceeds from (repayment of) short-term borrowings, net | 188,957 | (183,660 | ) | |||||
Proceeds from long-term borrowings and debt securities | 13,221,407 | 14,251,586 | ||||||
Repayment of long-term borrowings and debt securities | (7,068,290 | ) | (8,095,590 | ) | ||||
Payment of lease liabilities | (573,437 | ) | (134,454 | ) | ||||
Settlement of derivative instruments, net | 102,146 | 60,907 | ||||||
Change innon-controlling interest | 17,365 | 20,113 | ||||||
Dividends paid (hybrid bond) | (13,385 | ) | (17,658 | ) | ||||
Dividends paid | (99,356 | ) | (599,391 | ) | ||||
Other cash outflow from financing activities, net | — | (175 | ) | |||||
|
|
|
| |||||
Net cash provided by financing activities | 5,775,407 | 5,301,678 | ||||||
|
|
|
| |||||
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations | 489,477 | (1,032,491 | ) | |||||
Effect of exchange rate fluctuations on cash held | (37,693 | ) | 21,097 | |||||
|
|
|
| |||||
Net increase (decrease) in cash and cash equivalents | 451,784 | (1,011,394 | ) | |||||
Cash and cash equivalents at January 1 | 1,358,345 | 2,369,739 | ||||||
|
|
|
| |||||
Cash and cash equivalents at December 31 | 1,358,345 | |||||||
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
8
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
December 31, 2019
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 December 31, 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 154,843,683 shares (24.12%) as of December 31, 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 |
The consolidated financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred to as the “Group”) were authorized for issuance by the Board of Directors on February 28, 2020, which will be submitted for approval at the shareholders’ meeting held on March 27, 2020.
(1) | Statement of compliance |
These consolidated financial statements have been prepared in accordance with KIFRS, as prescribed in the Act on External Audits of Corporations in the Republic of Korea.
(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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 25).
10
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are1,580,804 million andW1,671,117 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.
(vii) | Early shutdown of Wolsong unit 1 nuclear power plant and changes in new nuclear power plants construction |
The30-year designed life of Wolsong unit 1 nuclear power plant of the Group had expired on November 20, 2012. On February 27, 2015, however, approval from the Nuclear Safety and Security Commission (NSSC) was received to continue its operation until November 20, 2022.
According to the Eighth Basic Plan for Electricity Supply and Demand announced by the Ministry of Trade, Industry and Energy in 2017, Wolsong unit 1 nuclear power plant was expected to go through a comprehensive evaluation for the feasibility of continuous operation including economic efficiency and acceptability of household and community in 2018 in order to decide whether to shut down early. On June 15, 2018, the board of directors of Korea Hydro & Nuclear Power Co., Ltd. (“KHNP”), a subsidiary of KEPCO, has decided to shut down the Wolsong unit 1 on the grounds that its deficit was increasing and its economic efficiency was low due to the unoptimistic utilization rate. On December 24, 2019, NSSC approved the permanent shutdown of unit 1.
In addition, KHNP has also decided to discontinue the construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2 pursuant to the government policy. For this reason, the Group recognized impairment loss, reversal of impairment loss and other expenses during the year 2018 and 2019, as described in Note 18 and Note 50.
Among the new nuclear power plants under construction, Shin-Hanwool unit 3 and 4, for which approval for power generation business was previously obtained, are not included in the decision to suspend construction of the board of directors of KHNP. However, considering the decision to shut down Wolsong unit 1 and suspended construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2, it is highly likely that the construction of Shin-Hanwool unit 3 and 4 will be suspended according to the government’s policy. For this reason, the Group recognized impairment loss as described in Note 18 and Note 50, as the Group believes that there was a significant change in its operating environment during the year ended December 31, 2018.
The Korean government plans to refund to the Group for reasonable expenditures incurred in relation to thephase-out of nuclear power plants in accordance with the energy transformation policy established by Korean government. In doing so, after discussions with relevant government agencies and upon approval by the Congress, the Korean government is considering to use available resource including utilizing relevant fund to make the refund. Also, Korean government has stated that it plans to establish relevant legal basis of providing refund including utilizing available resource, if necessary.
(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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 | (3,021 | ) | 875,867 | ||||||||
Assetsheld-for-sale | 22,881 | — | 22,881 | |||||||||
|
|
|
|
|
| |||||||
Total current assets | 19,745,068 | (3,021 | ) | 19,742,047 | ||||||||
|
|
|
|
|
| |||||||
Non-current assets | ||||||||||||
Non-current financial assets, net | 2,113,613 | — | 2,113,613 | |||||||||
Non-current trade and other receivables, net | 1,819,845 | (10 | ) | 1,819,835 | ||||||||
Property, plant and equipment, net | 152,743,194 | 4,947,947 | 157,691,141 | |||||||||
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 | (1,332 | ) | 325,820 | ||||||||
|
|
|
|
|
| |||||||
Totalnon-current assets | 165,503,993 | 4,946,605 | 170,450,598 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,943,584 | 190,192,645 | ||||||||||
|
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|
|
|
13
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 | 510,304 | 6,915,699 | ||||||||||
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 | 510,304 | 22,351,837 | |||||||||
|
|
|
|
|
| |||||||
Non-current liabilities | ||||||||||||
Non-current trade and other payables, net | 2,941,696 | 4,433,280 | 7,374,976 | |||||||||
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 | |||||||||
|
|
|
|
|
| |||||||
Totalnon-current liabilities | 92,314,766 | 4,433,280 | 96,748,046 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities (*) | 4,943,584 | 119,099,883 | ||||||||||
|
|
|
|
|
| |||||||
Equity | ||||||||||||
Contributed capital | — | 4,053,578 | ||||||||||
Retained earnings | 51,519,119 | — | 51,519,119 | |||||||||
Other components of equity | 14,171,228 | — | 14,171,228 | |||||||||
|
|
|
|
|
| |||||||
Equity attributable to owners of the controlling company | 69,743,925 | — | 69,743,925 | |||||||||
Non-controlling interests | 1,348,837 | — | 1,348,837 | |||||||||
|
|
|
|
|
| |||||||
Total Equity | — | 71,092,762 | ||||||||||
|
|
|
|
|
| |||||||
Total Liabilities and Equity | 4,943,584 | 190,192,645 | ||||||||||
|
|
|
|
|
|
(*) | The adjustment from the total liabilities amounting to |
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 Financial Statements, Continued
December 31, 2019
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.
The significant accounting policies applied by the Group in preparation of its consolidated financial statements are described in Note 3.(8).
(ii) | 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 financial statements. |
KIFRS 2123 Interpretation : 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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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).
(1) | Basis of consolidation |
The consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Subsidiaries are controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of The Group and to thenon-controlling interests even if this results in thenon-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.
Transactions within the Group are eliminated during the consolidation.
Changes in the Group’s ownership interests in a subsidiary that do not result in the Group losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Group’s interests and thenon-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which thenon-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Group.
When the Group loses control of a subsidiary, the income or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and anynon-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to income or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under KIFRS 1109 ‘Financial Instruments’ or, when applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.
(2) | Business combinations |
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.
The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in income or loss as incurred.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(2) | Business combinations, continued |
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at the acquisition date, except that:
• | deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with KIFRS 1012 ‘Income Taxes’ and KIFRS 1019 ‘Employee Benefits’, respectively; |
• | assets (or disposal groups) that are classified as held for sale in accordance with KIFRS 1105‘Non-current Assets Held for Sale’ are measured in accordance with that standard. |
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of anynon-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of anynon-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in income or loss as a bargain purchase gain.
Non-controlling interest that is present on acquisition day and entitles the holder to a proportionate share of the entity’s net assets in an event of liquidation, may be initially measured either at fair value or at thenon-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement can be elected on atransaction-by-transaction basis. Other types ofnon-controlling interests are measured at fair value or, when applicable, on the basis specified in other KIFRSs.
When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is notre-measured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability isre-measured at subsequent reporting dates in accordance with KIFRS 1109 ‘Financial Instruments’, or with KIFRS 1037 ‘Provisions, Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or loss being recognized in income or loss.
When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree isre-measured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss, if any, is recognized in income or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to income or loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.
The assets and liabilities acquired under business combinations under common control are recognized at the carrying amounts recognized previously in the consolidated financial statements of the ultimate parent. The difference between consideration transferred and carrying amounts of net assets acquired is recognized as part of share premium.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(3) | Investments in associates |
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not control or joint control over those policies. If the Group holds 20% ~ 50% of the voting power of the investee, it is presumed that the Group has significant influence.
The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. If the investment is classified as held for sale, in which case it is accounted for in accordance with KIFRS 1105‘Non-current Assets Held for Sale’, any retained portion of an investment in associates that has not been classified as held for sale shall be accounted for using the equity method until disposal of the portion that is classified as held for sale takes place. After the disposal takes place, the Group shall account for any retained interest in associates in accordance with KIFRS 1109 ‘Financial Instruments’ unless the retained interest continues to be an associate, in which case the entity uses the equity method.
Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the income or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in income or loss.
Upon disposal of an associate that results in the Group losing significant influence over that associate, any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with KIFRS 1109. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate.
In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to income or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to income or loss (as a reclassification adjustment) when it loses significant influence over that associate.
The requirements of KIFRS 1028 ’Investments in Associates and Joint Ventures’ are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with KIFRS 1036 ‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount, any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with KIFRS 1036 to the extent that the recoverable amount of the investment subsequently increases.
When the Group transacts with its associate, incomes and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(4) | Joint arrangements |
A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified into two types - joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint ventures) have rights to the net assets of the arrangement.
If the Group is a joint operator, the Group is to recognize and measure the assets and liabilities (and recognize the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant KIFRSs applicable to the particular assets, liabilities, revenues and expenses. If the joint arrangement is a joint venture, the Group is to account for that investment using the equity method accounting in accordance with KIFRS 1028 ‘Investment in Associates and Joint Ventures’ (refer to note 3.(3)), except when the Group is applicable to the KIFRS 1105‘Non-current Assets Held for Sale’.
(5) | Non-current assets held for sale |
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and thenon-current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain anon-controlling interest in its former subsidiary after the sale.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.
(6) | Goodwill |
The Group measures goodwill which acquired in a business combination at the amount recognized at the date on which it obtains control of the acquiree (acquisition date) less any accumulated impairment losses. Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies arising from the business acquired.
The Group assesses at the end of each reporting period and whenever there is an indication that the asset may be impaired. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
On disposal of the relevant CGU, the amount of goodwill is included in the determination of the gain or loss on disposal.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(7) | Revenue from Contracts with Customers |
The Group recognizes revenue by applying the five-step approach (Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when the entity satisfied a performance obligation). The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, excluding amounts collected on behalf of third parties. Also, the Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised good or service to a customer.
(i) | Identify the performance obligations in the contract |
The Group is engaged in the generation, transmission and distribution of electricity and development of electric power resources, and electricity sales revenue accounts for 97.21% of consolidated revenue for the year ended December 31, 2019.
Under KIFRS 1115, supplying electricity is a series of distinct goods or services identified as a single performance obligation. The Group is also engaged in contracts with customers for transmission and distribution, provision of power generation byproducts, EPC business, O&M, etc. that are identified as separate performance obligations for each contract.
(ii) | Variable consideration |
The Group may be subject to a variation of consideration paid by the customer due to the progressive electricity billing system, discounts on electricity bills for policy purposes, penalties and delinquent payment, etc. The Group estimates an amount of variable consideration by using the expected value method that the Group expects to better predict the amount of consideration to which it will be entitled, and includes in the transaction price some or all of an amount of variable consideration only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(iii) | Performance obligations satisfied over time |
The Group satisfies its performance obligations for contracts such as EPC business, O&M, etc. over time. The Group recognizes revenue based on thepercentage-of-completion on a reasonable basis.
The Group recognizes revenue over time if one of the following criteria is met:
(a) | the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the entity performs; |
(b) | the Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or |
(c) | the Group’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(8) | Leases |
The lessee and the lessor account for each lease component separately fromnon-lease component, in the lease contracts or contracts that contain lease. However, the Group applied a practical expedient to each type of underlying asset in accounting as a lessee, and instead of separating thenon-lease component from the lease component, it applied a method of accounting for each lease component and the relatednon-lease component as a single lease contract. The lessor’s accounting has not changed significantly. Therefore, a lease that transfers most of the risks and rewards of ownership of the underlying asset is classified as a finance lease, and a lease that does not transfer most of the risks and rewards of ownership of the underlying asset is classified as an operating lease.
(i) | The Group as a lessor |
In the case of finance leases, the Group recognizes the same amount of the net investment in the lease as finance lease receivables, and recognizes interest income using the effective interest method. Income from operating leases is recognized using the straight-line basis over the lease term, and lease opening direct costs incurred during the negotiation and contract phase of the operating lease contract are added to the carrying amount of the lease asset and recognized as expenses over the lease term on a straight-line basis.
(ii) | The Group as a lessee |
(a) 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.
(b) 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.
• | Lease liabilities |
At the commencement date of the lease, the Group recognized lease liabilities measured at the present value of lease payments to be made over the lease term. The incremental borrowing rate as a lessee at the date of initial application is 1.81% ~ 4.79%, and the effect of initial adoption are described in Note 2.(5).
The Group applied the practical expedient to post-judgment of the possibility of exercising the option of extension or termination when estimating the remaining lease duration. The Group also applied a single discount rate to a portfolio of leases with similar characteristics.
• | Right-of-use assets |
The Group recognized aright-of-use asset at the date of initial adoption for a lease previously classified as an operating lease under KIFRS 1017. The Group recognized the lease liabilities as the same amount withright-of-use assets, and adjusted the amount of the prepaid lease payment recognized in the statement financial position before the date of initial application.
Contracts recognized as leases before the date of initial application are accounted for leases regardless of whether they meet the new lease definition or not. After the date of initial application, the Group evaluates whether new lease contracts meet definition of the lease under KIFRS 1116.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(8) | Leases, Continued |
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 |
• | Applied thelow-value leases to leases of office equipment that are considered to be low value. |
(iii) | 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.
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 24.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(9) | Foreign currencies |
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate.Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Exchange differences are recognized in profit or loss in the period in which they arise except for:
• | Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings; |
• | Exchange differences on transactions entered into in order to hedge certain foreign currency risks (refer to Note 3.(23) Derivative financial instruments, including hedge accounting); and |
• | Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to income or loss on disposal or partial disposal of the net investment. |
For the purpose of presenting financial statements, the assets and liabilities of the Group’s foreign operations are expressed in Korean won using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.
When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of the gain or loss on disposal.
(10) | Borrowing costs |
The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in income or loss in the period in which they are incurred.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(11) | Government grants |
Government grants are not recognized unless there is reasonable assurance that the Group will comply with the grant’s conditions and that the grant will be received.
Benefit from a government loan at a below-market interest rate is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
(i) | If the Group received grants related to assets |
Government grants whose primary condition is that the Group purchase, construct or otherwise acquire long-term assets are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.
(ii) | If the Group received grants related to income |
Government grants which are intended to compensate the Group for expenses incurred are recognized as other income (government grants) in profit or loss over the periods in which the Group recognizes the related costs as expenses.
(12) | Employee benefits |
When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense).
For defined benefit pension plans and other post-employment benefits, the net periodic pension expense is actuarially determined by “Pension Actuarial System” developed by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. However, if there is not a deep market, market yields on government bonds are used.
Net defined benefit liability’s measurement is composed of actuarial gains and losses, return on plan assets excluding net interest on net defined benefit liability, and any change in the effect of the asset ceiling, excluding net interest, which are immediately recognized in other comprehensive income. The actuarial gains or losses recognized in other comprehensive income which will not be reclassified into net profit or loss for later periods are immediately recognized in retained earnings. Past service cost will be recognized as expenses upon the earlier of the date of change or reduction to the plan, or the date of recognizing termination benefits.
The retirement benefit obligation recognized in the statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses and unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(13) | Income taxes |
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.
(i) | Current tax |
Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, andnon-taxable ornon-deductible items from the accounting profit.
Current tax assets and liabilities are offset only if, the Group:
(a) | has a legally enforceable right to set off the recognized amounts; and |
(b) | intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. |
(ii) | Deferred tax |
Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.
The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets or deferred tax liabilities on investment properties measured at fair value, unless any contrary evidence exists, are measured using the assumption that the carrying amount of the property will be recovered entirely through sale.
The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries and associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.
(iii) | Current and deferred tax for the year |
Current and deferred tax are recognized in income or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(14) | Property, plant and equipment |
Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are recognized in the carrying amount of property, plant and equipment at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of theday-to-day servicing are recognized in profit or loss as incurred.
Property, plant and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. For loaded nuclear fuel related to long-term raw materials and spent nuclear fuels related to asset retirement costs, the Group uses theunit-of-production method to measure and recognize depreciation expenses.
The estimated useful lives of the Group’s property, plant and equipment are as follows:
Useful lives (years) | ||
Buildings | 8 ~ 40 | |
Structures | 8 ~ 50 | |
Machinery | 2 ~ 32 | |
Vehicles | 3 ~ 8 | |
Loaded heavy water | 30 | |
Asset retirement costs | 18, 30, 40, 60 | |
Right-of-use assets | 1 ~ 32 | |
Ships | 9 | |
Others | 4 ~ 15 |
A component that is significant compared to the total cost of property, plant and equipment is depreciated over its separate useful life.
Depreciation methods, residual values and useful lives of property, plant and equipment are reviewed at the end of each reporting period and if change is deemed appropriate, it is treated as a change in accounting estimate.
Property, plant and equipment are derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of a property, plant and equipment, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in income or loss when the asset is derecognized.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(15) | Investment property |
Property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.
Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of theday-to-day servicing are recognized in profit or loss as incurred.
Investment property except for land, are depreciated on a straight-line basis over 8 ~ 40 years as estimated useful lives.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the property is derecognized.
(16) | Intangible assets |
(i) | Intangible assets acquired separately |
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
(ii) | Research and development |
Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:
• | The technical feasibility of completing the intangible asset so that it will be available for use or sale; |
• | The intention to complete the intangible asset and use or sell it; |
• | The ability to use or sell the intangible asset; |
• | How the intangible asset will generate probable future economic benefits; |
• | The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
• | The ability to measure reliably the expenditure attributable to the intangible asset during its development. |
The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. When the development expenditure does not meet the criteria listed above, an internally-generated intangible asset cannot be recognized and the expenditure is recognized in income or loss in the period in which it is incurred.
Internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(16) | Intangible assets, continued |
The estimated useful lives and amortization methods of the Group’s intangible assets are as follows:
Useful lives (years) | Amortization methods | |||
Usage rights for donated assets | 10 ~ 30 | Straight line | ||
Software | 4, 5 | Straight line | ||
Industrial rights | 5 ~ 10 | Straight line | ||
Development expenses | 5 | Straight line | ||
Leasehold rights | 10 | Straight line | ||
Others | 3 ~ 50 or indefinite | Straight line | ||
Mining right | — | Unit of production |
(iii) | Intangible assets acquired in a business combination |
Intangible assets that are acquired in a business combination are recognized separately from goodwill are initially recognized at their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
(iv) | Derecognition of intangible assets |
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in income or loss when the asset is derecognized.
(17) | Greenhouse gas emissions rights (allowances) and obligations |
In connection with Enforcement of Allocation and Trading of Greenhouse Gas Emissions Allowances, the Group applies the following accounting policies for greenhouse gas emissions rights and obligations.
(i) | Greenhouse gas emissions rights |
Greenhouse gas emissions rights consist of the allowances received free of charge from the government and the ones purchased. The cost of the greenhouse gas emissions rights includes expenditures arising directly from the acquisition and any other costs incurred during normal course of the acquisition.
Greenhouse gas emissions rights are held by the Group to fulfill the legal obligation and recorded as intangible assets. To the extent that the portion to be submitted to the government within one year from the end of reporting period, the greenhouse gas emissions rights are classified as current assets. Greenhouse gas emissions rights recorded as intangible assets are initially measured at cost and substantially remeasured at cost less accumulated impairment losses.
Greenhouse gas emissions rights are derecognized on submission to the government or when no future economic benefits are expected from its use or disposal.
(ii) | Greenhouse gas emissions obligations |
Greenhouse gas emissions obligations are the Group’s present legal obligation to submit the greenhouse gas emissions allowances to the government and recognized when an outflow of resources is probable and a reliable estimate can be made of the amount of the obligation. Greenhouse gas emissions obligations are measured as the sum of the carrying amount of the allocated rights that will be submitted to the government and the best estimate of expenditure required to settle the obligation at the end of the reporting period for any excess emission.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(18) | Impairment ofnon-financial assets other than goodwill |
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets with definite useful lives to determine whether there is any indication that those assets may have been impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using apre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, to the extent the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
(19) | Inventories |
Inventories are measured at the lower of cost and net realizable value. Cost of inventories for inventories in transit are measured by using specific identification method. Cost of inventories, except for those in transit, are measured under the weighted average method and consists of the purchase price, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, are recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs.
(20) | Provisions |
Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(20) | Provisions, continued |
Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
(i) | Provision for employment benefits |
The Group determines the provision for employment benefits as the incentive payments based on the results of the individual performance evaluation or management assessment.
(ii) | Provision for decommissioning costs of nuclear power plants |
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 retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. Accretion expense consists ofperiod-to-period changes in the liability for decommissioning costs resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows.
(iii) | Provision for disposal of spent nuclear fuel |
Under the Radioactive Waste Management Act, the Group is levied to pay the spent nuclear fuel fund for the management of spent nuclear fuel. The Group recognizes the provision of present value of the payments.
(iv) | Provision for low and intermediate radioactive wastes |
Under the Radioactive Waste Management Act, the Group recognizes the provision for the disposal of low and intermediate radioactive wastes in best estimate of the expenditure required to settle the present obligation.
(v) | Provision for Polychlorinated Biphenyls (“PCBs”) |
Under the regulation of Persistent Organic Pollutants Management Act, enacted in 2007, the Group is required to remove PCBs, a toxin, from the insulating oil of its transformers by 2025. As a result of the enactments, the Group is required to inspect the PCBs contents of transformers and dispose of PCBs in excess of safety standards under the legally settled procedures. The Group’s estimates and assumptions used to determine fair value can be affected by many factors, such as the estimated costs of inspection and disposal, inflation rate, discount rate, regulations and the general economy.
(vi) | Provisions for power plant regional support program |
Power plant regional support programs consist of scholarship programs to local students, local economy support programs, local culture support programs, environment development programs, and local welfare programs. The Group recognizes the provision in relation to power plant regional support program.
(vii) | Provisions for transmission and transformation facilities-neighboring areas support program |
The Group has present obligation to conduct transmission and transformation facilities-neighboring areas support program under Act on assistance to transmission and transformation facilities-neighboring areas. The Group recognizes the provision of estimated amount to fulfill the obligation.
(viii) | Renewable Portfolio Standard (“RPS”) provisions |
RPS program is required to generate a specified percentage of total electricity to be generated in the form of renewable energy and provisions are recognized for the governmental regulations to require the production of energies from renewable energy sources such as solar, wind and biomass.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(21) | Financial instruments |
The Group recognizes financial assets and financial liabilities in the statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Upon initial recognition, financial assets and financial liabilities are measured at their fair value plus, in the case of a financial asset or financial liabilities not at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition or issuance.
(i) | Classification and measurement of financial assets |
The Group classifies financial assets into three principal categories; measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL) based on the business model in which assets are managed and their cash flow characteristics. The Group assesses the hybrid financial instrument in which derivatives embedded as whole for classification.
Cash flow characteristics | ||||
Business model | Solely payments of principal and interest (SPPI) | Other than SPPI | ||
To collect contractual cash flows | Amortized cost | FVTPL (*2) | ||
Both collecting contractual cash flows and selling financial assets | FVOCI (*1) | |||
To sell financial assets | FVTPL |
(*1) | To eliminate or reduce an accounting mismatch, the Group may elect to recognize the amount of change in fair value in profit or loss. |
(*2) | On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. |
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and 2) its contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) its contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition of equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in fair value in OCI, and will not reclassify (recycle) those items in OCI to profit or loss subsequently.
(ii) | Classification and measurement of financial liabilities |
Financial liabilities are classified as FVTPL or other financial liabilities.
A financial liability is classified as at FVTPL if it is classified asheld-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.
Anon-derivative financial liability that is not classified as at FVTPL is classified as other financial liabilities. Other financial liabilities are measured initially at its fair value minus transaction costs that are directly attributable to the acquisition or issue. Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(21) | Financial instruments, continued |
(iii) | Impairment: Financial assets and contract assets |
The Group applies a forward-looking ‘expected credit loss’ (ECL) model for debt instruments, lease receivables, contractual assets, loan commitments and financial guarantee contracts.
The Group recognizes loss allowances measured on either of the12-month or lifetime ECL based on the extent of increase in credit risk since inception as shown in the below table.
Classification | Loss allowances | |||||
Stage 1 | Credit risk has not increased significantly since the initial recognition | 12-month ECL: ECLs that resulted from possible default events within the 12 months after the reporting date | ||||
Stage 2 | Credit risk has increased significantly since the initial recognition | Lifetime ECL: ECL that resulted from all possible default events over the expected life of a financial instrument | ||||
Stage 3 | Credit-impaired |
Under KIFRS 1109, the Group always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables or contract assets that result from transactions that are within the scope of KIFRS 1115 and that do not contain a significant financing component in accordance with KIFRS 1115 and if the trade receivables or contract assets include a significant financing component, the Group may choose as its accounting policy to measure the loss allowance at an amount equal to lifetime expected credit losses.
The Group has chosen to measure the loss allowance at an amount equal to lifetime expected credit losses for the trade receivables, contract assets and lease receivables that contain a significant financing component.
(iv) | Derecognition |
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Group enters into transactions whereby it transfers assets recognized in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.
The Group derecognizes a financial liability when it contractual obligations are discharged or cancelled, or expire. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including anynon-cash assets transferred or liabilities assumed) is recognized in profit or loss.
(22) | Service Concession Arrangements |
The Group recognizes revenues from construction services and operating services related to service concession arrangements in accordance with KIFRS 1115 ’ Revenue from Contracts with Customers’.
The Group recognizes a financial asset to the extent that it has an unconditional contractual right to receive cash or another financial asset for the construction services and an intangible asset to the extent that it receives a right (license) to charge users of the public service. Borrowing costs attributable to the arrangement are recognized as an expense in the period in which they are incurred unless the Group has a contractual right to receive an intangible asset (a right to charge users of the public service). In this case, borrowing costs attributable to the arrangement are capitalized during the construction phase of the arrangement.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(23) | Derivative financial instruments, including hedge accounting |
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and cross currency swaps and others.
Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value. The resulting gain or loss is recognized in income or loss immediately unless the derivative is designated and effective as a hedging instrument, in such case the timing of the recognition in income or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognized as a financial asset; a derivative with a negative fair value is recognized as a financial liability. A derivative is presented as anon-current asset or anon-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities.
(i) | Separable embedded derivatives |
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and when the host contracts are not measured at FVTPL.
An embedded derivative is presented as anon-current asset or anon-current liability if the remaining maturity of the hybrid instrument to which the embedded derivative is part of, is more than 12 months and it is not expected to be realized or settled within 12 months. All other embedded derivatives are presented as current assets or current liabilities.
(ii) | Hedge accounting |
The Group designates certain hedging instruments, which include derivatives, embedded derivatives andnon-derivatives in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.
At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.
(iii) | Fair value hedges |
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in income or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The changes in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk relating to the hedged items are recognized in the consolidated statements of comprehensive income.
Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized as income or loss as of that date.
(iv) | Cash flow hedges |
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in income or loss, and is included in the ‘finance income and expense’.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
3. | Significant Accounting Policies, Continued |
(23) | Derivative financial instruments, including hedge accounting, continued |
Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to income or loss in the periods when the hedged item is recognized in income or loss, in the same line of the consolidated statement of comprehensive income as the recognized hedged item. However, when the forecast transaction that is hedged results in the recognition of anon-financial asset or anon-financial liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of thenon-financial asset ornon-financial liability.
Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or it no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in income or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in income or loss.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
4. | Segment, Geographic and Other Information, Continued |
(2) | Financial information of the segments for the year ended December 31, 2019 and 2018, respectively, are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Transmission and distribution | 1,336,725 | 57,596,455 | (2,848,347 | ) | 3,814,428 | 73,478 | 777,120 | 140,757 | ||||||||||||||||||||||||
Electric power generation (Nuclear) | 8,937,026 | 8,908,803 | 28,223 | 822,785 | 3,227,695 | 37,277 | 511,864 | (5,497 | ) | |||||||||||||||||||||||
Electric power generation(Non-nuclear) | 24,254,957 | 23,472,153 | 782,804 | 548,267 | 3,955,333 | 35,626 | 655,466 | 77,641 | ||||||||||||||||||||||||
Plant maintenance & engineering service | 2,627,539 | 2,254,841 | 372,698 | 325,390 | 125,546 | 14,214 | 2,861 | 1,237 | ||||||||||||||||||||||||
Others | 1,049,324 | 656,614 | 392,710 | (14,804 | ) | 127,364 | 141,262 | 134,248 | — | |||||||||||||||||||||||
Consolidation adjustments | (36,629,136 | ) | (36,629,136 | ) | — | (109,812 | ) | (121,626 | ) | (33,739 | ) | (34,748 | ) | — | ||||||||||||||||||
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— | 59,172,890 | (1,276,521 | ) | 11,128,740 | 268,118 | 2,046,811 | 214,139 | |||||||||||||||||||||||||
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In millions of won | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Transmission and distribution | 1,393,120 | 58,878,380 | (2,193,268 | ) | 3,555,158 | 77,925 | 708,329 | 287,268 | ||||||||||||||||||||||||
Electric power generation (Nuclear) | 8,858,717 | 8,833,787 | 24,930 | 1,116,262 | 3,088,019 | 30,422 | 503,161 | 9,946 | ||||||||||||||||||||||||
Electric power generation(Non-nuclear) | 25,204,085 | 24,389,816 | 814,269 | 495,092 | 3,269,023 | 29,313 | 577,441 | 58,993 | ||||||||||||||||||||||||
Plant maintenance & engineering service | 2,526,126 | 2,170,959 | 355,167 | 312,113 | 114,030 | 12,505 | 4,126 | 1,956 | ||||||||||||||||||||||||
Others | 996,300 | 441,436 | 554,864 | 146,979 | 55,513 | 117,878 | 119,037 | — | ||||||||||||||||||||||||
Consolidation adjustments | (37,229,118 | ) | (37,229,118 | ) | — | (85,179 | ) | (56,949 | ) | (44,276 | ) | (43,636 | ) | — | ||||||||||||||||||
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— | 60,627,610 | (208,001 | ) | 10,024,794 | 223,767 | 1,868,458 | 358,163 | |||||||||||||||||||||||||
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
4. | Segment, Geographic and Other Information, Continued |
(3) | Information related to segment assets and segment liabilities as of and for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Segment | Segment assets | Investments in associates and joint ventures | Acquisition of non-current assets | Segment liabilities | ||||||||||||
Transmission and distribution | 3,716,931 | 6,340,593 | 58,350,681 | |||||||||||||
Electric power generation (Nuclear) | 59,562,190 | 59,081 | 2,574,358 | 33,909,152 | ||||||||||||
Electric power generation(Non-nuclear) | 54,758,933 | 2,088,581 | 4,955,784 | 33,117,193 | ||||||||||||
Plant maintenance & engineering service | 3,528,879 | 50,238 | 95,810 | 1,124,855 | ||||||||||||
Others | 7,833,516 | — | 344,795 | 3,531,496 | ||||||||||||
Consolidation adjustments | (37,894,980 | ) | — | (81,555 | ) | (1,325,234 | ) | |||||||||
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5,914,831 | 14,229,785 | 128,708,143 | ||||||||||||||
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In millions of won | ||||||||||||||||
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) | ||||||||||||||
Geographical unit | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Domestic | 58,394,539 | 169,366,365 | 157,037,428 | |||||||||||||
Overseas (*1) | 1,625,954 | 2,233,071 | 2,743,755 | 3,299,346 | ||||||||||||
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60,627,610 | 172,110,120 | 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, defined benefit assets and deferred tax assets. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 years ended December 31, 2019 and 2018.
5. | Classification of Financial Instruments |
(1) | Classification of financial assets as of December 31, 2019 and 2018 are as follows: |
In millions of won | 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 | — | 1,810,129 | — | 1,810,129 | ||||||||||||||||
Current financial assets | ||||||||||||||||||||
Current financial assets at fair value through profit or loss | 131,385 | — | — | — | 131,385 | |||||||||||||||
Current financial assets at amortized costs | — | — | 12,302 | — | 12,302 | |||||||||||||||
Current derivative assets | 21 | — | — | 27,597 | 27,618 | |||||||||||||||
Other financial assets | — | — | 1,415,204 | — | 1,415,204 | |||||||||||||||
Trade and other receivables | — | — | 7,701,452 | — | 7,701,452 | |||||||||||||||
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131,406 | — | 10,939,087 | 27,597 | 11,098,090 | ||||||||||||||||
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Non-current assets |
| |||||||||||||||||||
Non-current financial assets | ||||||||||||||||||||
Non-current financial assets at fair value through profit or loss | 615,876 | — | — | — | 615,876 | |||||||||||||||
Non-current financial assets at fair value through other comprehensive income | — | 379,170 | — | — | 379,170 | |||||||||||||||
Non-current financial assets at amortized costs | — | — | 1,307 | — | 1,307 | |||||||||||||||
Non-current derivative assets | 165,183 | — | — | 118,232 | 283,415 | |||||||||||||||
Other financial assets | — | — | 1,283,730 | — | 1,283,730 | |||||||||||||||
Trade and other receivables | — | — | 2,002,297 | — | 2,002,297 | |||||||||||||||
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781,059 | 379,170 | 3,287,334 | 118,232 | 4,565,795 | ||||||||||||||||
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379,170 | 14,226,421 | 145,829 | 15,663,885 | |||||||||||||||||
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
5. | Classification of Financial Instruments, Continued |
(1) | Classification of financial assets as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 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 | |||||||||||||||
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327,829 | — | 11,155,832 | 28,171 | 11,511,832 | ||||||||||||||||
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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 | |||||||||||||||
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630,737 | 399,495 | 2,866,693 | 36,533 | 3,933,458 | ||||||||||||||||
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399,495 | 14,022,525 | 64,704 | 15,445,290 | |||||||||||||||||
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
5. | Classification of Financial Instruments, Continued |
(2) | Classification of financial liabilities as of December 31, 2019 and 2018 are as follows: |
In millions of won | 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 | 1,315,134 | — | 1,315,134 | |||||||||||||
Debt securities | — | 7,542,705 | — | 7,542,705 | ||||||||||||
Derivative liabilities | 13,286 | — | 59,778 | 73,064 | ||||||||||||
Trade and other payables | — | 6,649,402 | — | 6,649,402 | ||||||||||||
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13,286 | 15,507,241 | 59,778 | 15,580,305 | |||||||||||||
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Non-current liabilities | ||||||||||||||||
Borrowings | — | 3,389,743 | — | 3,389,743 | ||||||||||||
Debt securities | — | 55,628,959 | — | 55,628,959 | ||||||||||||
Derivative liabilities | 39,861 | — | 57,035 | 96,896 | ||||||||||||
Trade and other payables | — | 6,965,760 | — | 6,965,760 | ||||||||||||
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39,861 | 65,984,462 | 57,035 | 66,081,358 | |||||||||||||
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81,491,703 | 116,813 | 81,661,663 | ||||||||||||||
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In millions of won | 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 | ||||||||||||
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13,706 | 14,366,843 | 6,725 | 14,387,274 | |||||||||||||
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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 | ||||||||||||
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85,304 | 56,014,875 | 206,428 | 56,306,607 | |||||||||||||
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70,381,718 | 213,153 | 70,693,881 | ||||||||||||||
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42
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
5. | Classification of Financial Instruments, Continued |
(3) | Classification of comprehensive income from financial instruments for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||
Cash and cash equivalents | Interest income | 40,704 | ||||||||
Financial assets at fair value through profit or loss | Interest income | 29,411 | 21,713 | |||||||
Gain (loss) on valuation of derivatives | 151,604 | 34,117 | ||||||||
Gain (loss) on transaction of derivatives | 63,329 | 39,114 | ||||||||
Gain (loss) on valuation of financial assets | 1,062 | 1,879 | ||||||||
Gain (loss) on disposal of financial assets | 1,760 | 1,837 | ||||||||
Financial assets at fair value through other comprehensive income | Dividends income | 13,838 | 12,777 | |||||||
Financial assets at amortized cost | Interest income | 539 | 89 | |||||||
Loans | Interest income | 63,448 | 21,925 | |||||||
Trade and other receivables | Interest income | 69,941 | 90,390 | |||||||
Short-term financial instruments | Interest income | 49,070 | 41,025 | |||||||
Long-term financial instruments | Interest income | 12,794 | 7,920 | |||||||
Other financial assets | Interest income | 54 | 1 | |||||||
Derivatives (applying hedge accounting) | Gain (loss) on valuation of derivatives (profit or loss) | 123,730 | 69,799 | |||||||
Gain (loss) on valuation of derivatives (equity, before tax) | 38,305 | 8,600 | ||||||||
Gain (loss) on transaction of derivatives | 65,651 | 34,152 | ||||||||
Financial liabilities at fair value through profit or loss | Gain (loss) on valuation of derivatives | 27,686 | (4,650 | ) | ||||||
Gain (loss) on transaction of derivatives | (493 | ) | 36,046 | |||||||
Financial liabilities carried at amortized cost | Interest expense of borrowings and debt securities | 1,394,328 | 1,320,516 | |||||||
Interest expense of trade and other payables | 94,019 | 42,830 | ||||||||
Interest expense of others | 558,464 | 505,112 | ||||||||
Loss on foreign currency transactions and translations | (406,175 | ) | (356,159 | ) | ||||||
Derivatives (applying hedge accounting) | Gain (loss) on valuation of derivatives (profit or loss) | 14,330 | 53,937 | |||||||
Gain (loss) on valuation of derivatives (equity, before tax) | (2,578 | ) | (15,029 | ) | ||||||
Gain (loss) on transaction of derivatives | (42,072 | ) | 37,985 |
43
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
6. | Restricted Deposits |
Restricted deposits as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||
Cash and cash equivalents | Deposits for government project | 12,747 | ||||||||
Collateral provided for borrowings | 63,198 | 100,998 | ||||||||
Collateral provided for lawsuit | 3 | 3 | ||||||||
Deposits for transmission regional support program | 3,002 | 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 | 93,000 | 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 | 541,969 | 498,555 | |||||||
Long-term financial instruments | Escrow | 74 | 69 | |||||||
Guarantee deposits for banking accounts at oversea branches | 326 | 315 | ||||||||
Collateral provided for borrowings | 11,745 | — | ||||||||
Decommissioning costs of nuclear power plants | 250,464 | 245,896 | ||||||||
Funds for developing small and medium enterprises (*) | 200,000 | 200,000 | ||||||||
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1,126,975 | ||||||||||
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|
(*) | Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for high potential businesses as of December 31, 2019 and 2018. |
7. | Cash and Cash Equivalents |
Cash and cash equivalents as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Cash | 138 | |||||||
Other demand deposits | 1,117,499 | 927,650 | ||||||
Short-term deposits classified as cash equivalents | 527,235 | 211,424 | ||||||
Short-term investments classified as cash equivalents | 165,129 | 219,133 | ||||||
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1,358,345 | ||||||||
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44
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
8. | Trade and Other Receivables |
(1) | Trade and other receivables as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Trade receivables | (208,505 | ) | — | 6,939,178 | ||||||||||||
Other receivables | 792,147 | (27,579 | ) | (2,294 | ) | 762,274 | ||||||||||
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7,939,830 | (236,084 | ) | (2,294 | ) | 7,701,452 | |||||||||||
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| |||||||||
Non-current assets | ||||||||||||||||
Trade receivables | 338,261 | (4,254 | ) | (382 | ) | 333,625 | ||||||||||
Other receivables | 1,759,930 | (86,576 | ) | (4,682 | ) | 1,668,672 | ||||||||||
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2,098,191 | (90,830 | ) | (5,064 | ) | 2,002,297 | |||||||||||
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| |||||||||
(326,914 | ) | (7,358 | ) | 9,703,749 | ||||||||||||
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|
|
In millions of won | 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 | ||||||||||
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| |||||||||
8,031,625 | (236,006 | ) | (2,027 | ) | 7,793,592 | |||||||||||
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| |||||||||
Non-current assets | ||||||||||||||||
Trade receivables | 415,318 | (93 | ) | (448 | ) | 414,777 | ||||||||||
Other receivables | 1,496,464 | (84,495 | ) | (6,901 | ) | 1,405,068 | ||||||||||
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1,911,782 | (84,588 | ) | (7,349 | ) | 1,819,845 | |||||||||||
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|
|
|
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| |||||||||
(320,594 | ) | (9,376 | ) | 9,613,437 | ||||||||||||
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|
|
|
45
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
8. | Trade and Other Receivables, Continued |
(2) | Other receivables as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Non-trade receivables | (27,201 | ) | — | 349,237 | ||||||||||||
Accrued income | 68,921 | — | — | 68,921 | ||||||||||||
Deposits | 273,887 | — | (2,294 | ) | 271,593 | |||||||||||
Finance lease receivables | 60,304 | (378 | ) | — | 59,926 | |||||||||||
Others | 12,597 | — | — | 12,597 | ||||||||||||
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|
|
|
| |||||||||
792,147 | (27,579 | ) | (2,294 | ) | 762,274 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Non-trade receivables | 196,821 | (78,654 | ) | — | 118,167 | |||||||||||
Accrued income | 2,222 | — | — | 2,222 | ||||||||||||
Deposits | 338,989 | — | (4,682 | ) | 334,307 | |||||||||||
Finance lease receivables | 1,118,537 | (484 | ) | — | 1,118,053 | |||||||||||
Others | 103,361 | (7,438 | ) | — | 95,923 | |||||||||||
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|
|
|
|
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| |||||||||
1,759,930 | (86,576 | ) | (4,682 | ) | 1,668,672 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(114,155 | ) | (6,976 | ) | 2,430,946 | ||||||||||||
|
|
|
|
|
|
|
|
In millions of won | 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 | ||||||||||||
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|
|
|
|
| |||||||||
728,560 | (20,231 | ) | (2,027 | ) | 706,302 | |||||||||||
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|
|
|
| |||||||||
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 | |||||||||||
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| |||||||||
1,496,464 | (84,495 | ) | (6,901 | ) | 1,405,068 | |||||||||||
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| |||||||||
(104,726 | ) | (8,928 | ) | 2,111,370 | ||||||||||||
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|
|
(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. |
46
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
8. | Trade and Other Receivables, Continued |
(4) | Aging analysis of trade receivables as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Trade receivables: (not overdue) | 7,419,648 | |||||||
|
|
|
| |||||
Trade receivables: (impairment reviewed) | 147,187 | 298,735 | ||||||
|
|
|
| |||||
Less than 60 days | 6,555 | 2,525 | ||||||
60 ~ 90 days | 1,899 | 37,266 | ||||||
90 ~ 120 days | 2,106 | 16,033 | ||||||
120 days ~ 1 year | 37,357 | 46,204 | ||||||
Over 1 year | 99,270 | 196,707 | ||||||
|
|
|
| |||||
7,485,944 | 7,718,383 | |||||||
Less: allowance for doubtful accounts | (212,759 | ) | (215,868 | ) | ||||
Less: present value discount | (382 | ) | (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) | Aging analysis of other receivables as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Other receivables: (not overdue) | 2,075,601 | |||||||
|
|
|
| |||||
Other receivables: (impairment reviewed) | 224,437 | 149,423 | ||||||
|
|
|
| |||||
Less than 60 days | 98,220 | 24,782 | ||||||
60 ~ 90 days | 2,034 | 1,007 | ||||||
90 ~ 120 days | 14,135 | 10,997 | ||||||
120 days ~ 1 year | 26,212 | 23,991 | ||||||
Over 1 year | 83,836 | 88,646 | ||||||
|
|
|
| |||||
2,552,077 | 2,225,024 | |||||||
Less: allowance for doubtful accounts | (114,155 | ) | (104,726 | ) | ||||
Less: present value discount | (6,976 | ) | (8,928 | ) | ||||
|
|
|
| |||||
2,111,370 | ||||||||
|
|
|
|
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.
47
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
8. | Trade and Other Receivables, Continued |
(6) | Changes in the allowance for doubtful accounts for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 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 | 29,221 | 19,206 | 41,498 | 17,817 | ||||||||||||
Write-off, etc. | (10,106 | ) | (1,146 | ) | (7,696 | ) | (244 | ) | ||||||||
Reversal | (41,940 | ) | — | (1,726 | ) | (143 | ) | |||||||||
Others | 19,716 | (8,631 | ) | 3,568 | 9,160 | |||||||||||
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|
|
|
|
|
| |||||||||
Ending balance | 114,155 | 215,868 | 104,726 | |||||||||||||
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|
48
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
9. | Financial assets at fair value through profit or loss |
(1) | Financial assets at fair value through profit or loss as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
Beneficiary Certificate | 160,952 | 100 | 320,148 | |||||||||||||
Cooperative | — | 5,155 | — | 5,052 | ||||||||||||
Other | 130,491 | 244,857 | 313,793 | 83,586 | ||||||||||||
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|
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|
|
| |||||||||
131,385 | 410,964 | 313,893 | 408,786 | |||||||||||||
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|
|
|
|
|
| |||||||||
Financial assets designated as at fair value through profit or loss | ||||||||||||||||
Debt with embedded derivatives | — | 150,916 | — | 187,483 | ||||||||||||
Other | — | 53,996 | — | 10,773 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | 204,912 | — | 198,256 | |||||||||||||
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|
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|
|
| |||||||||
615,876 | 313,893 | 607,042 | ||||||||||||||
|
|
|
|
|
|
|
|
(2) | Details of income (loss) from financial assets at fair value through profit or loss for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beneficiary Certificate | 6,892 | |||||||
Cooperative | 76 | 626 | ||||||
Debt with embedded derivatives | 2,697 | 4,804 | ||||||
Other | 17,002 | 13,108 | ||||||
|
|
|
| |||||
25,430 | ||||||||
|
|
|
|
49
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income |
(1) | Changes in financial assets at fair value through other comprehensive income for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposal | Valuation | Impairment | Others | Ending balance | ||||||||||||||||||||||
Listed | — | — | (11,734 | ) | — | 2,880 | 201,201 | |||||||||||||||||||||
Unlisted | 189,439 | 1,876 | (19,315 | ) | 3,715 | — | 2,254 | 177,969 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
399,494 | 1,876 | (19,315 | ) | (8,019 | ) | — | 5,134 | 379,170 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Current financial assets at fair value through other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||
Non-current financial assets at fair value through other comprehensive income | 399,494 | 1,876 | (19,315 | ) | (8,019 | ) | — | 5,134 | 379,170 |
In millions of won | 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 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
— | 471,903 | — | (1 | ) | (75,077 | ) | — | 2,670 | 399,495 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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 |
50
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Listed | ||||||||||||||||||||
Korea District Heating Corp. | 2,264,068 | 19.55 | % | 107,090 | 107,090 | |||||||||||||||
Ssangyong Motor Co., Ltd. | 38,568 | 0.03 | % | 428 | 80 | 80 | ||||||||||||||
SM 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 | 52 | 52 | ||||||||||||||
PAN Ocean Co., Ltd. | 1,492 | 0.00 | % | 14 | 7 | 7 | ||||||||||||||
Dongbu Corp. | 955 | 0.00 | % | 12 | 8 | 8 | ||||||||||||||
KSP Co., Ltd. | 22,539 | 0.06 | % | 24 | 40 | 40 | ||||||||||||||
STX Heavy Industries Co., Ltd. | 8,639 | 0.03 | % | 213 | 26 | 26 | ||||||||||||||
Codes Combine Co., Ltd. | 291 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
PT Adaro Energy Tbk | 480,000,000 | 1.50 | % | 65,028 | 62,026 | 62,026 | ||||||||||||||
Energy Fuels Inc. | 1,711,814 | 1.91 | % | 16,819 | 3,764 | 3,764 | ||||||||||||||
Bunji Corporation Limited (formerly, Baralaba Coal Company Limited) | 99,763 | 0.07 | % | 18,445 | — | — | ||||||||||||||
Denison Mines Corp. | 58,284,000 | 10.42 | % | 84,134 | 27,903 | 27,903 | ||||||||||||||
Fission 3.0 | 75,000 | 0.14 | % | — | 5 | 5 | ||||||||||||||
Fission Uranium Corp. | 800,000 | 0.16 | % | 785 | 199 | 199 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
359,339 | 201,202 | 201,202 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Unlisted(*1) | ||||||||||||||||||||
Intellectual Discovery Co., Ltd. | 1,000,000 | 6.00 | % | 954 | 954 | |||||||||||||||
Hwan Young Steel Co., Ltd. | 10,916 | 0.14 | % | 1,092 | 97 | 97 | ||||||||||||||
SAMBO AUTO. Co., Ltd. | 15,066 | 0.02 | % | 38 | 38 | 38 | ||||||||||||||
Mobo Co., Ltd. | 504 | 0.00 | % | 14 | 14 | 14 | ||||||||||||||
Dae Kwang Semiconductor Co., Ltd. | 589 | 0.07 | % | 6 | 6 | 6 | ||||||||||||||
Sanbon Department Store | 828 | 0.01 | % | 124 | 3 | 3 | ||||||||||||||
Miju Steel Mfg. Co., Ltd. | 1,097 | 0.23 | % | 50 | 50 | 50 | ||||||||||||||
Sungwon Co., Ltd. | 117 | 0.07 | % | 15 | 15 | 15 | ||||||||||||||
Hana Civil Engineering Co., Ltd. | 23 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
KC Development Co., Ltd. | 839 | 0.02 | % | 6 | 6 | 6 | ||||||||||||||
IMHWA Corp. | 329 | 0.11 | % | 5 | 5 | 5 | ||||||||||||||
DALIM Special Vehicle Co., Ltd. | 58 | 0.08 | % | 10 | 10 | 10 | ||||||||||||||
ASA JEONJU Co., Ltd. | 34,846 | 1.34 | % | 697 | 69 | 69 | ||||||||||||||
Moonkyung Silica Co., Ltd. | 42 | 0.56 | % | — | — | — | ||||||||||||||
Sungkwang Timber Co., Ltd. | 3 | 0.08 | % | 5 | 5 | 5 | ||||||||||||||
Yongbo Co., Ltd. | 61 | 0.20 | % | 3 | 3 | 3 | ||||||||||||||
HJ Steel Co., Ltd. | 218 | 0.07 | % | 2 | 2 | 2 | ||||||||||||||
KS Remicon Co., Ltd. | 12 | 0.04 | % | 3 | 3 | 3 | ||||||||||||||
Joongang Platec Co., Ltd. | 3,591 | 0.75 | % | 72 | 35 | 35 | ||||||||||||||
Pyungsan SI Co., Ltd. | 434 | 0.01 | % | 9 | 9 | 9 | ||||||||||||||
Samgong Development Co., Ltd. | 12 | 0.01 | % | 7 | 7 | 7 | ||||||||||||||
Joongang Development Co., Ltd. | 540 | 0.12 | % | 8 | 8 | 8 | ||||||||||||||
AJS Co., Ltd. | 12,906 | 0.23 | % | 32 | 32 | 32 | ||||||||||||||
MSE Co., Ltd. | 429 | 0.13 | % | 9 | 9 | 9 | ||||||||||||||
Ilrim Nano Tec Co., Ltd. | 1,520 | 0.07 | % | 15 | 15 | 15 | ||||||||||||||
YoungjinHi-Tech Co., Ltd. | 2,512 | 0.25 | % | 126 | 21 | 21 | ||||||||||||||
Buyoung Co., Ltd. | 270 | 0.00 | % | 3 | 3 | 3 | ||||||||||||||
Ilsuk Co., Ltd. | 152 | 0.17 | % | 10 | 10 | 10 | ||||||||||||||
Dongyang Telecom Co., Ltd. | 1,760 | 0.01 | % | 11 | 11 | 11 | ||||||||||||||
Jongwon Remicon Co., Ltd. | 31 | 0.18 | % | 13 | 13 | 13 | ||||||||||||||
Zyle Daewoo Motor Sales Co., Ltd. | 22 | 0.00 | % | — | — | — | ||||||||||||||
Daewoo Development Co., Ltd. | 8 | 0.00 | % | — | — | — | ||||||||||||||
Seyang Inc. | 537 | 0.05 | % | 27 | 27 | 27 |
51
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Seungri Enterprise Co., Ltd. | 93 | 0.05 | % | 3 | 3 | 3 | ||||||||||||||
Onggane Food Co., Ltd | 5 | 0.07 | % | 1 | 1 | 1 | ||||||||||||||
Shin-E P&C Co., Ltd. | 1,569 | 0.64 | % | 111 | 3 | 3 | ||||||||||||||
Ejung Ad Co., Ltd. | 132 | 0.09 | % | 3 | 3 | 3 | ||||||||||||||
Solvus Co., Ltd. | 1,056 | 0.04 | % | 3 | 3 | 3 | ||||||||||||||
Myung Co., Ltd. | 89 | 0.05 | % | 2 | 2 | 2 | ||||||||||||||
Shinil Engineering Co., Ltd. | 887 | 0.06 | % | 3 | 3 | 3 | ||||||||||||||
Biwang Industry Co., Ltd | 406 | 0.04 | % | 2 | 2 | 2 | ||||||||||||||
Young Sung Co., Ltd. | 89 | 0.40 | % | 27 | 27 | 27 | ||||||||||||||
Yuil Industrial Electronics Co., Ltd. | 804 | 0.32 | % | 16 | 16 | 16 | ||||||||||||||
DN TEK Inc. | 12,401 | 0.29 | % | 62 | 6 | 6 | ||||||||||||||
Woojin Industry Corporation | 3 | 0.00 | % | 16 | 16 | 16 | ||||||||||||||
Kwang Sung Industry Co., Ltd. | 325 | 0.35 | % | 7 | 7 | 7 | ||||||||||||||
Futech Mold Co., Ltd. | 274 | 0.27 | % | 14 | 14 | 14 | ||||||||||||||
Woojoo Environment Ind. Co., Ltd. | 101 | 0.11 | % | 13 | 13 | 13 | ||||||||||||||
Hyungji Esquire Co., Ltd. | 61 | 0.02 | % | 22 | 22 | 22 | ||||||||||||||
Kolmar Pharma Co., Ltd. | 1,426 | 0.01 | % | 52 | 3 | 3 | ||||||||||||||
Morado Co., Ltd. | 209 | 0.04 | % | 2 | 2 | 2 | ||||||||||||||
Myung Sung Tex Co., Ltd. | 20 | 0.00 | % | 2 | 2 | 2 | ||||||||||||||
Kwang Sung Co., Ltd. | 610 | 0.53 | % | 31 | 31 | 31 | ||||||||||||||
Seen Business and Technology co., Ltd. | 29,424 | 0.73 | % | 147 | 7 | 7 | ||||||||||||||
Woobang Construction Co., Ltd. | 8 | 0.00 | % | 8 | 8 | 8 | ||||||||||||||
Shin Pyung Co., Ltd. | 6 | 0.03 | % | 3 | 3 | 3 | ||||||||||||||
JMC Heavy Industries Co., Ltd. | 2,724 | 0.10 | % | 27 | 2 | 2 | ||||||||||||||
Najin Steel Co., Ltd. | 37 | 0.06 | % | 5 | 5 | 5 | ||||||||||||||
Sinkwang Industry Co., Ltd. | 1,091 | 1.68 | % | 5 | 5 | 5 | ||||||||||||||
Elephant & Friends Co., Ltd. | 563 | 0.61 | % | 3 | 3 | 3 | ||||||||||||||
Mireco Co., Ltd. | 109 | 0.25 | % | 11 | 11 | 11 | ||||||||||||||
L&K Industry Co., Ltd. | 1,615 | 0.60 | % | 24 | 24 | 24 | ||||||||||||||
JO Tech Co., Ltd. | 1,263 | 0.62 | % | 25 | 25 | 25 | ||||||||||||||
Kendae Printing Co., Ltd. | 422 | 0.60 | % | 21 | 21 | 21 | ||||||||||||||
Dauning Co., Ltd. | 231 | 0.41 | % | 6 | 6 | 6 | ||||||||||||||
Korea Trecision Co., Ltd. | 22 | 0.45 | % | 5 | 5 | 5 | ||||||||||||||
Ace Track Co., Ltd. | 3,130 | 1.08 | % | 219 | 59 | 59 | ||||||||||||||
Yoo-A Construction Co., Ltd. | 105 | 0.20 | % | 11 | 11 | 11 | ||||||||||||||
Dung Hwan Co., Ltd. | 531 | 0.02 | % | 5 | 5 | 5 | ||||||||||||||
Hurim Biocell Co., Ltd. | 1,021 | 0.00 | % | 5 | 5 | 5 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.14 | % | 200 | 200 | 200 | ||||||||||||||
Sunjin Power Tech Co., Ltd. | 4,941 | 0.92 | % | 247 | 32 | 32 | ||||||||||||||
Haseung Industries Co., Ltd. | 55 | 0.62 | % | 28 | 28 | 28 | ||||||||||||||
Beer Yeast Korea Inc. | 1,388 | 0.43 | % | 7 | 7 | 7 | ||||||||||||||
B CON Co., Ltd. | 96 | 1.16 | % | 6 | 6 | 6 | ||||||||||||||
Ace Integration Co., Ltd | 105 | 0.09 | % | 23 | 23 | 23 | ||||||||||||||
AceInti Agricultural Co., Ltd. | 16 | 0.02 | % | 5 | 5 | 5 | ||||||||||||||
KyungDong Co., Ltd. | 130 | 0.01 | % | 1 | 1 | 1 | ||||||||||||||
ChunWon Development Co., Ltd. | 193 | 0.19 | % | 39 | 39 | 39 | ||||||||||||||
SungLim Industrial Co., Ltd. | 29 | 0.03 | % | 1 | 1 | 1 | ||||||||||||||
Korea Minerals Co., Ltd. | 191 | 0.05 | % | 135 | 1 | 1 | ||||||||||||||
HyoDong Development Co., Ltd. | 128 | 0.15 | % | 25 | 25 | 25 | ||||||||||||||
Haspe Tech Co., Ltd. | 652 | 0.55 | % | 20 | 20 | 20 | ||||||||||||||
JoHyun Co., Ltd. | 350 | 1.56 | % | 18 | 18 | 18 | ||||||||||||||
KC Co., Ltd. | 5,107 | 0.17 | % | 26 | 26 | 26 | ||||||||||||||
SeongJi Industrial Co., Ltd. | 41 | 0.05 | % | 1 | 1 | 1 |
52
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Dong Yang Metal Co., Ltd. | 2,951 | 1.97 | % | 161 | 148 | 148 | ||||||||||||||
Seyang Precision Ind.Co., Ltd. | 829 | 0.23 | % | 41 | 41 | 41 | ||||||||||||||
Dooriwon Food System Co., Ltd. | 13 | 0.27 | % | 1 | 1 | 1 | ||||||||||||||
ShinShin Co., Ltd | 339 | 1.12 | % | 17 | 17 | 17 | ||||||||||||||
Sung Kwang Co., Ltd. | 23 | 0.37 | % | 6 | 6 | 6 | ||||||||||||||
Shinheung petrol. Co., Ltd. | 699 | 0.14 | % | 35 | 35 | 35 | ||||||||||||||
Force TEC Co., Ltd. | 3,501 | 0.02 | % | 18 | 18 | 18 | ||||||||||||||
Samsung Tech Co., Ltd. | 486 | 1.28 | % | 97 | 36 | 36 | ||||||||||||||
Tae Hyung Co., Ltd. | 28 | 0.43 | % | 20 | 20 | 20 | ||||||||||||||
Younil Metal Co., Ltd. | 41 | 0.21 | % | 21 | 21 | 21 | ||||||||||||||
Hankook Precision Ind Co., Ltd. | 110 | 0.06 | % | 11 | 3 | 3 | ||||||||||||||
Borneo International Furniture Co., Ltd. | 4,000 | 0.16 | % | 97 | 13 | 13 | ||||||||||||||
CJ Paradise Co., Ltd | 24 | 0.02 | % | 12 | 12 | 12 | ||||||||||||||
Han Young Technology Company Co., Ltd. | 35 | 0.00 | % | — | — | — | ||||||||||||||
STX Offshore & Shipbuilding Co., Ltd | 8,622 | 0.25 | % | 1,078 | 1,078 | 1,078 | ||||||||||||||
Ptotronics Co., Ltd. | 843 | 0.42 | % | 84 | 6 | 6 | ||||||||||||||
NFT Co., Ltd. | 136 | 0.40 | % | 8 | 8 | 8 | ||||||||||||||
Echoroba Co., Ltd. | 157 | 0.02 | % | 3 | 3 | 3 | ||||||||||||||
Hyundaitech Co., Ltd. | 1,363 | 0.87 | % | 27 | 27 | 27 | ||||||||||||||
Dasan Material Co., Ltd. | 29 | 0.04 | % | 22 | 22 | 22 | ||||||||||||||
Fish World Co., Ltd. | 47 | 0.21 | % | 2 | 2 | 2 | ||||||||||||||
SG Shinsung Engineering and Construction Co., Ltd. | 10 | 0.00 | % | 6 | 6 | 6 | ||||||||||||||
Samdo Industry Electric Co., Ltd. | 48 | 0.02 | % | 1 | 1 | 1 | ||||||||||||||
Taejung Industries Co., Ltd. | 9,268 | 0.30 | % | 5 | 5 | 5 | ||||||||||||||
Shinsei Trading Co., Ltd. | 64 | 0.72 | % | 6 | 6 | 6 | ||||||||||||||
Dynamic Co., Ltd. | 111 | 0.19 | % | 3 | 3 | 3 | ||||||||||||||
Green Alchemy Co., Ltd. | 38,202 | 1.48 | % | 191 | 17 | 17 | ||||||||||||||
Youone TBM Engineering & Construction Co., Ltd. | 615 | 0.27 | % | 31 | 31 | 31 | ||||||||||||||
KM Leatech Co., Ltd. | 1,648 | 0.98 | % | 8 | 8 | 8 | ||||||||||||||
Semist Co., Ltd. | 555 | 0.80 | % | 3 | 3 | 3 | ||||||||||||||
Sewon Bus Co., Ltd | 12 | 0.00 | % | — | — | — | ||||||||||||||
Enertec Co., Ltd. | 7,937 | 0.19 | % | 44 | 44 | 44 | ||||||||||||||
Sangji Co., Ltd. | 20 | 0.26 | % | 4 | 4 | 4 | ||||||||||||||
Bellie Doughnuts Co., Ltd. | 64 | 0.07 | % | 4 | 4 | 4 | ||||||||||||||
Possbell Engineering Co., Ltd. | 36 | 0.64 | % | 1 | 1 | 1 | ||||||||||||||
AIRTECH Information communication Co., Ltd | 2,379 | 0.60 | % | 12 | 12 | 12 | ||||||||||||||
Shin kwang Industrial Co., Ltd. | 884 | 0.35 | % | 55 | 55 | 55 | ||||||||||||||
Kiscom Co., Ltd. | 1,493 | 0.04 | % | 1 | 1 | 1 | ||||||||||||||
Wonil laser Co., Ltd | 157 | 0.37 | % | 16 | 16 | 16 | ||||||||||||||
Pyung Hwa Industrial Co., Ltd. | 3,388 | 3.00 | % | 85 | 85 | 85 | ||||||||||||||
PT. Kedap Saayq | 671 | 10.00 | % | 18,540 | — | — | ||||||||||||||
Set Holding (*2) | 1,100,220 | 2.50 | % | 229,255 | 166,863 | 166,863 | ||||||||||||||
PT. Cirebon Energi Prasarana | 22,420 | 10.00 | % | 2,612 | 2,596 | 2,596 | ||||||||||||||
Choheung packing Co., Ltd. | 61 | 0.13 | % | 12 | 12 | 12 | ||||||||||||||
Jaewoo Co., Ltd. | 359 | 0.24 | % | 11 | 11 | 11 | ||||||||||||||
Wooyang HC Co., Ltd | 1,375 | 0.01 | % | 159 | 159 | 159 | ||||||||||||||
Sungsan Parts Co., Ltd. | 629 | 0.80 | % | 63 | 63 | 63 | ||||||||||||||
KMT Co., Ltd. | 1,411 | 0.93 | % | 21 | 21 | 21 | ||||||||||||||
TheYeonriji Co., Ltd. | 116 | 0.10 | % | 6 | 6 | 6 | ||||||||||||||
Flusys Co., Ltd. | 9 | 0.08 | % | 2 | 2 | 2 | ||||||||||||||
DongSeo Electronics Co., Ltd. | 323 | 0.07 | % | 16 | 16 | 16 | ||||||||||||||
Daewoo Display Co., Ltd. | 177 | 0.03 | % | 5 | 5 | 5 | ||||||||||||||
Yeong-gwang Remicon Co., Ltd. | 15 | 0.12 | % | 2 | 2 | 2 | ||||||||||||||
NTS Co., Ltd. | 143 | 0.22 | % | 36 | 36 | 36 |
53
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
AID CO., Ltd. | 1,212 | 0.57 | % | 36 | 36 | 36 | ||||||||||||||
ChangwonEco-friendly farming Corp. | 3 | 0.01 | % | — | — | — | ||||||||||||||
Kumo Hitech Co., Ltd. | 6,697 | 0.53 | % | 100 | 100 | 100 | ||||||||||||||
Kyung Pyo Industry Co., Ltd. | 186 | 0.76 | % | 19 | 19 | 19 | ||||||||||||||
Daedong Industry Co., Ltd. | 617 | 0.55 | % | 46 | 46 | 46 | ||||||||||||||
Doosung Heavy Industries Co., Ltd. | 53 | 0.06 | % | 5 | 5 | 5 | ||||||||||||||
Samjoo Hightech Co., Ltd. | 522 | 0.08 | % | 3 | 3 | 3 | ||||||||||||||
Samkwang Chemical Co., Ltd. | 204 | 1.27 | % | 51 | 51 | 51 | ||||||||||||||
SG Corp. | 213 | 0.54 | % | 21 | 21 | 21 | ||||||||||||||
Shinseung Chemical Industy Co., Ltd. | 5 | 0.01 | % | 60 | 60 | 60 | ||||||||||||||
KJ Alloy Co., Ltd. | 368 | 0.20 | % | 7 | 7 | 7 | ||||||||||||||
SMHi-tech Co., Ltd. | 22 | 0.39 | % | 22 | 22 | 22 | ||||||||||||||
Keum Mun Industry Co., Ltd. | 1,320 | 0.97 | % | 330 | 56 | 56 | ||||||||||||||
Puruen Environment Co., Ltd. | 967 | 1.34 | % | 19 | 19 | 19 | ||||||||||||||
Miretech Co., Ltd. | 9,111 | 0.27 | % | 18 | 18 | 18 | ||||||||||||||
SIE Co., Ltd. | 12 | 0.02 | % | 1 | 1 | 1 | ||||||||||||||
Sejin Hightech Co., Ltd. | 17,980 | 0.16 | % | 18 | 18 | 18 | ||||||||||||||
Namcheong Corp. | 7,096 | 0.28 | % | 284 | 11 | 11 | ||||||||||||||
Eun Sung Enterprise Co. | 1,131 | 0.72 | % | 17 | 17 | 17 | ||||||||||||||
Dongdo Basalt Industry Co., Ltd. | 182 | 1.50 | % | 73 | 73 | 73 | ||||||||||||||
Shinyoung Textiles Co., Ltd. | 523 | 1.01 | % | 52 | 23 | 23 | ||||||||||||||
Bugook Cast Iron Co. | 135 | 0.71 | % | 14 | 14 | 14 | ||||||||||||||
Ilwoo Steel Co., Ltd. | 41 | 0.28 | % | 17 | 17 | 17 | ||||||||||||||
Dong-un Tech Co., Ltd. | 1,159 | 6.28 | % | 81 | 81 | 81 | ||||||||||||||
Wongwang Door Corp. | 575 | 1.00 | % | 29 | 29 | 29 | ||||||||||||||
Seobu Highway Solar Co., Ltd. | 19,460 | 10.00 | % | 192 | 192 | 192 | ||||||||||||||
Dongbu Highway Solar Co., Ltd. | 19,020 | 4.99 | % | 192 | 192 | 192 | ||||||||||||||
Muan sunshine solar power plant | 298,300 | 19.00 | % | 1,492 | 1,492 | 1,492 | ||||||||||||||
mansu Co., Ltd. | 344 | 0.25 | % | 15 | 15 | 15 | ||||||||||||||
Eanskorea Co., Ltd. | 39 | 0.05 | % | 2 | 2 | 2 | ||||||||||||||
Youngdongseafood Co., Ltd. | 165 | 0.33 | % | 8 | 8 | 8 | ||||||||||||||
Hyunwoo Winstar Co., Ltd. | 1 | 0.00 | % | — | — | — | ||||||||||||||
Sehwa Diecasting Co., Ltd. | 299 | 1.66 | % | 44 | 44 | 44 | ||||||||||||||
Sungchang Tech Co., Ltd. | 159 | 0.31 | % | 10 | 10 | 10 | ||||||||||||||
Yuchang Industry Co., Ltd. | 90 | 0.11 | % | 5 | 5 | 5 | ||||||||||||||
Jeongpum Co., Ltd. | 322 | 0.35 | % | 16 | 16 | 16 | ||||||||||||||
Korea Steel Power Co., Ltd. | 2,761 | 1.88 | % | 55 | 55 | 55 | ||||||||||||||
DMC Co., Ltd. | 5,831 | 0.02 | % | 38 | 38 | 38 | ||||||||||||||
Amanex Co., Ltd. | 10 | 0.02 | % | 9 | 9 | 9 | ||||||||||||||
Dae-A Leisure Co., Ltd. | 23 | 0.00 | % | 4 | 4 | 4 | ||||||||||||||
Caffe Bene Co., Ltd. | 1,908 | 0.03 | % | 2 | 2 | 2 | ||||||||||||||
Daechang HRSG Co., Ltd. | 618 | 0.12 | % | 62 | 62 | 62 | ||||||||||||||
Shinjin International Corp. | 4 | 0.01 | % | 1 | 1 | 1 | ||||||||||||||
Daewoon Shell Tech Co., Ltd. | 666 | 2.81 | % | 33 | 33 | 33 | ||||||||||||||
Jinhung Packaging Co., Ltd | 4,329 | 3.02 | % | 9 | 22 | 22 | ||||||||||||||
Donglim Eng Co., Ltd. | 26 | 0.11 | % | 3 | 3 | 3 | ||||||||||||||
SIP Co., Ltd. | 274 | 0.55 | % | 7 | 7 | 7 | ||||||||||||||
Clizen Co., Ltd. | 615 | 0.34 | % | 31 | 31 | 31 | ||||||||||||||
DAEDONGMILLENNIUM Co., Ltd. | 159 | 0.42 | % | 32 | 32 | 32 | ||||||||||||||
Daeji Product Co., Ltd. | 15 | 0.05 | % | 1 | — | — | ||||||||||||||
Cheong Hae Myeong Ga Co., Ltd | 1,867 | 0.11 | % | 5 | 5 | 5 |
54
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2019 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Shinhan Sangi Co., Ltd. | 29 | 0.20 | % | 4 | 4 | 4 | ||||||||||||||
Jaein Circuit Co., Ltd. | 498 | 1.12 | % | 65 | 65 | 65 | ||||||||||||||
SSET Co., Ltd. | 181 | 0.30 | % | 18 | 18 | 18 | ||||||||||||||
Sewon PM Tech Co., Ltd. | 963 | 1.11 | % | 48 | 48 | 48 | ||||||||||||||
Dawon Yuhwa Co., Ltd. | 506 | 1.94 | % | 25 | 25 | 25 | ||||||||||||||
Ogokbaekkwa Co., Ltd. | 101 | 0.12 | % | 1 | 1 | 1 | ||||||||||||||
Shinwonn Toptech Co., Ltd. | 834 | 0.51 | % | 83 | 83 | 83 | ||||||||||||||
KMLC Co., Ltd. | 281 | 0.14 | % | 22 | 22 | 22 | ||||||||||||||
Seinfood Co., Ltd. | 13 | 0.17 | % | 7 | 7 | 7 | ||||||||||||||
TaeSung Eco-Tech. Co., Ltd. | 1,368 | 4.55 | % | 34 | 34 | 34 | ||||||||||||||
Kukex Inc. | 639 | 0.05 | % | 3 | 3 | 3 | ||||||||||||||
Youngshin Plu Co., Ltd. | 104 | 0.12 | % | 5 | 5 | 5 | ||||||||||||||
Chang won Engineering Co., Ltd. | 22 | 0.00 | % | 4 | 4 | 4 | ||||||||||||||
Samsung Silup Co., Ltd. | 47 | 0.19 | % | 5 | 5 | 5 | ||||||||||||||
Samwon Bio Tech Co., Ltd. | 390 | 0.25 | % | 6 | 6 | 6 | ||||||||||||||
IZU KOREA Co. Ltd. | 48 | 0.00 | % | 2 | 2 | 2 | ||||||||||||||
Dongdo CNP Co., Ltd. | 234 | 0.36 | % | 6 | 6 | 6 | ||||||||||||||
Hando Precision Co., Ltd | 38 | 0.26 | % | 4 | 4 | 4 | ||||||||||||||
Dae Bang Industry Co., Ltd. | 115 | 0.13 | % | 6 | 6 | 6 | ||||||||||||||
S.I.T. Co., Ltd | 2,213 | 0.44 | % | 22 | 22 | 22 | ||||||||||||||
Taejin Hiech Co., Ltd. | 78 | 0.26 | % | 3 | 3 | 3 | ||||||||||||||
Headone Co., Ltd. | 69 | 0.12 | % | 7 | 7 | 7 | ||||||||||||||
Enaindustry Co., Ltd. | 201 | 0.09 | % | 141 | 141 | 141 | ||||||||||||||
TCT Co., Ltd. | 3,277 | 0.55 | % | 82 | 82 | 82 | ||||||||||||||
E-Won Solutech Co., Ltd. | 158 | 0.16 | % | 40 | 40 | 40 | ||||||||||||||
MJT Co., Ltd. | 1,013 | 0.20 | % | 51 | 51 | 51 | ||||||||||||||
KPL Circuit Co., Ltd. | 283 | 0.08 | % | 14 | 14 | 14 | ||||||||||||||
Road Solar Co., Ltd. | 12 | 0.00 | % | — | — | — | ||||||||||||||
Sung Ae Co., Ltd. | 190 | 0.80 | % | 10 | 10 | 10 | ||||||||||||||
Han Mi Flexible Co., Ltd. | 143 | 0.20 | % | 43 | 43 | 43 | ||||||||||||||
Samhwa Casting Co. Ltd. | 200 | 0.00 | % | 100 | 100 | 100 | ||||||||||||||
Millennium PNT Co., Ltd. | 227 | 0.37 | % | 6 | 6 | 6 | ||||||||||||||
GN Chem Co., Ltd. | 40 | 0.07 | % | 1 | 1 | 1 | ||||||||||||||
GW Industry Co., Ltd. | 505 | 0.07 | % | 51 | 51 | 51 | ||||||||||||||
TM Construction co. Ltd | 4 | 0.00 | % | — | — | — | ||||||||||||||
Dae Myung Co., Ltd | 114 | 0.08 | % | 3 | 3 | 3 | ||||||||||||||
Nanomicart Co., Ltd. | 176 | 1.06 | % | 35 | 35 | 35 | ||||||||||||||
Young San Heavy Industries Co., Ltd. | 74 | 0.11 | % | 7 | 7 | 7 | ||||||||||||||
Samchungwon Co., Ltd. | 15 | 0.24 | % | 2 | 2 | 2 | ||||||||||||||
Wooyang Frozen Foods Co., Ltd. | 66 | 0.82 | % | 27 | 27 | 27 | ||||||||||||||
Nanomic Co., Ltd. | 94 | 0.63 | % | 38 | 38 | 38 | ||||||||||||||
Dong Hwan Co., Ltd. | 25 | 0.02 | % | 1 | 1 | 1 | ||||||||||||||
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266,717 | 177,968 | 177,968 | ||||||||||||||||||
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379,170 | 379,170 | |||||||||||||||||||
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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) | 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 year ended December 31, 2019. |
55
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 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 | ||||||||||||||
SM 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 Corp. | 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 | ||||||||||||||
Bunji Corporation Limited (formerly, 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 (*6) | 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 | % | 954 | 954 | |||||||||||||||
Hwan Young Steel Co., Ltd. | 10,916 | 0.14 | % | 1,092 | 97 | 97 | ||||||||||||||
SAMBO AUTO. Co., Ltd. | 15,066 | 0.02 | % | 38 | 38 | 38 | ||||||||||||||
Mobo Co., Ltd. | 504 | 0.00 | % | 14 | 14 | 14 | ||||||||||||||
Dae Kwang Semiconductor Co., Ltd. | 589 | 0.07 | % | 6 | 6 | 6 | ||||||||||||||
Sanbon Department Store | 828 | 0.01 | % | 124 | 3 | 3 | ||||||||||||||
Miju Steel Mfg. Co., Ltd. | 1,097 | 0.23 | % | 50 | 50 | 50 | ||||||||||||||
Sungwon Co., Ltd. (*7) | 117 | 0.07 | % | 15 | 15 | 15 | ||||||||||||||
Hana Civil Engineering Co., Ltd. | 23 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
KC Development Co., Ltd. | 839 | 0.02 | % | 6 | 6 | 6 | ||||||||||||||
IMHWA Corp. | 329 | 0.11 | % | 5 | 5 | 5 | ||||||||||||||
DALIM Special Vehicle Co., Ltd. | 58 | 0.08 | % | 10 | 10 | 10 | ||||||||||||||
ASA JEONJU Co., Ltd. | 34,846 | 1.34 | % | 697 | 69 | 69 | ||||||||||||||
Moonkyung Silica Co., Ltd. | 42 | 0.56 | % | — | — | — | ||||||||||||||
Sungkwang Timber Co., Ltd. | 9 | 0.34 | % | 4 | 4 | 4 | ||||||||||||||
Yongbo Co., Ltd. | 61 | 0.20 | % | 3 | 3 | 3 | ||||||||||||||
HJ Steel Co., Ltd. | 218 | 0.07 | % | 2 | 2 | 2 | ||||||||||||||
KS Remicon Co., Ltd. | 12 | 0.04 | % | 3 | 3 | 3 | ||||||||||||||
Joongang Platec Co., Ltd. | 3,591 | 0.75 | % | 72 | 35 | 35 | ||||||||||||||
Pyungsan SI Ltd. | 434 | 0.01 | % | 9 | 9 | 9 | ||||||||||||||
Samgong Development Co., Ltd. | 12 | 0.01 | % | 7 | 7 | 7 | ||||||||||||||
Joongang Development Co., Ltd. | 540 | 0.12 | % | 8 | 8 | 8 | ||||||||||||||
AJS Co., Ltd. | 12,906 | 0.23 | % | 32 | 32 | 32 | ||||||||||||||
SHIN-E B&P Co., Ltd. | 119 | 0.13 | % | 10 | — | — | ||||||||||||||
MSE Co., Ltd. | 429 | 0.13 | % | 9 | 9 | 9 | ||||||||||||||
Ilrim Nano Tec Co., Ltd. | 1,520 | 0.07 | % | 15 | 15 | 15 | ||||||||||||||
YoungjinHi-Tech Co., Ltd. | 2,512 | 0.25 | % | 126 | 21 | 21 | ||||||||||||||
Buyoung Co., Ltd. | 270 | 0.00 | % | 3 | 3 | 3 | ||||||||||||||
Ilsuk Co., Ltd. | 152 | 0.17 | % | 10 | 10 | 10 | ||||||||||||||
Dongyang Telecom Co., Ltd. | 1,760 | 0.01 | % | 11 | 11 | 11 | ||||||||||||||
Jongwon Remicon Co., Ltd. | 31 | 0.18 | % | 13 | 13 | 13 | ||||||||||||||
Zyle Daewoo Motor Sales Co., Ltd. | 22 | 0.00 | % | — | — | — | ||||||||||||||
Daewoo Development Co., Ltd. | 8 | 0.00 | % | — | — | — |
56
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2018 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Seyang Inc. | 537 | 0.05 | % | 27 | 27 | 27 | ||||||||||||||
Seungri Enterprise Co., Ltd. | 93 | 0.05 | % | 3 | 3 | 3 | ||||||||||||||
Onggane Food Co., Ltd | 5 | 0.07 | % | 1 | 1 | 1 | ||||||||||||||
Shin-E P&C Co., Ltd. | 1,569 | 0.64 | % | 111 | 3 | 3 | ||||||||||||||
Ejung Ad Co., Ltd. | 132 | 0.09 | % | 3 | 3 | 3 | ||||||||||||||
Solvus Co., Ltd. | 1,056 | 0.04 | % | 3 | 3 | 3 | ||||||||||||||
Myung Co., Ltd. | 89 | 0.05 | % | 2 | 2 | 2 | ||||||||||||||
Shinil Engineering Co., Ltd. | 887 | 0.06 | % | 3 | 3 | 3 | ||||||||||||||
Biwang Industry Co., Ltd | 406 | 0.04 | % | 2 | 2 | 2 | ||||||||||||||
Huimun Co., Ltd. | 263 | 0.26 | % | 4 | 4 | 4 | ||||||||||||||
Young Sung Co., Ltd. | 89 | 0.40 | % | 26 | 26 | 26 | ||||||||||||||
Yuil Industrial Electronics Co., Ltd. | 804 | 0.32 | % | 15 | 15 | 15 | ||||||||||||||
DN TEK Inc. | 12,401 | 0.29 | % | 61 | 5 | 5 | ||||||||||||||
Kwang Jin Structure Co., Ltd. | 3,072 | 0.60 | % | 31 | 31 | 31 | ||||||||||||||
Woojin Industry Corporation | 3 | 0.00 | % | 16 | 16 | 16 | ||||||||||||||
Kwang Sung Industry Co., Ltd. | 325 | 0.35 | % | 7 | 7 | 7 | ||||||||||||||
Futech Mold Co., Ltd. | 274 | 0.27 | % | 14 | 14 | 14 | ||||||||||||||
Woojoo Environment Ind. Co., Ltd. | 101 | 0.11 | % | 13 | 13 | 13 | ||||||||||||||
Hyungji Esquire Co., Ltd. | 61 | 0.02 | % | 22 | 22 | 22 | ||||||||||||||
Kolmar Pharma Co., Ltd. | 1,426 | 0.01 | % | 52 | 3 | 3 | ||||||||||||||
Morado Co., Ltd. | 209 | 0.04 | % | 2 | 2 | 2 | ||||||||||||||
Myung Sung Tex Co., Ltd. | 20 | 0.00 | % | 2 | 2 | 2 | ||||||||||||||
Kwang Sung Co., Ltd. | 610 | 0.53 | % | 31 | 31 | 31 | ||||||||||||||
Seen Business and Technology co., Ltd. (formerly, EverTechno. Co., Ltd.) | 29,424 | 0.73 | % | 148 | 7 | 7 | ||||||||||||||
Autowel Co., Ltd. | 260 | 0.38 | % | 14 | 14 | 14 | ||||||||||||||
Woobang Construction Co., Ltd. | 8 | 0.00 | % | 8 | 8 | 8 | ||||||||||||||
Shin Pyung Co., Ltd. | 6 | 0.03 | % | 3 | 3 | 3 | ||||||||||||||
JMC Heavy Industries Co., Ltd. | 2,724 | 0.10 | % | 27 | 2 | 2 | ||||||||||||||
Najin Steel Co., Ltd. | 37 | 0.06 | % | 5 | 5 | 5 | ||||||||||||||
Sinkwang Industry Co., Ltd. | 1,091 | 1.68 | % | 5 | 5 | 5 | ||||||||||||||
Crystal Co., Ltd. | 22 | 0.07 | % | 2 | 2 | 2 | ||||||||||||||
Elephant & Friends Co., Ltd. | 563 | 0.61 | % | 3 | 3 | 3 | ||||||||||||||
Mireco Co., Ltd. | 109 | 0.25 | % | 11 | 11 | 11 | ||||||||||||||
L&K Industry Co., Ltd. | 1,615 | 0.60 | % | 24 | 24 | 24 | ||||||||||||||
JO Tech Co., Ltd. | 1,263 | 0.62 | % | 25 | 25 | 25 | ||||||||||||||
Kendae Printing Co., Ltd. | 422 | 0.60 | % | 21 | 21 | 21 | ||||||||||||||
Dauning Co., Ltd. | 231 | 0.41 | % | 6 | 6 | 6 | ||||||||||||||
Korea Trecision Co., Ltd. | 22 | 0.45 | % | 5 | 5 | 5 | ||||||||||||||
Ace Track Co., Ltd. | 3,130 | 1.08 | % | 219 | 59 | 59 | ||||||||||||||
Yoo-A Construction Co., Ltd. | 105 | 0.20 | % | 11 | 11 | 11 | ||||||||||||||
Dung Hwan Co., Ltd. | 531 | 0.02 | % | 5 | 5 | 5 | ||||||||||||||
Hurim Biocell Co., Ltd. | 1,021 | 0.00 | % | 5 | 5 | 5 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.35 | % | 200 | 200 | 200 | ||||||||||||||
Sunjin Power Tech Co., Ltd. | 4,941 | 0.92 | % | 247 | 32 | 32 | ||||||||||||||
Haseung Industries Co., Ltd. | 55 | 0.62 | % | 28 | 28 | 28 | ||||||||||||||
Beer Yeast Korea Inc. | 1,388 | 0.43 | % | 7 | 7 | 7 | ||||||||||||||
Korea Bio Red Ginseng Co., Ltd. | 194 | 0.09 | % | 10 | 10 | 10 | ||||||||||||||
B CON Co., Ltd. | 96 | 1.16 | % | 6 | 6 | 6 | ||||||||||||||
SsangMa Machine Co., Ltd. | 4 | 0.05 | % | 1 | 1 | 1 | ||||||||||||||
Ace Integration Co., Ltd | 105 | 0.09 | % | 24 | 24 | 24 | ||||||||||||||
AceInti Agricultural Co., Ltd. | 16 | 0.02 | % | 5 | 5 | 5 | ||||||||||||||
KyungDong Co., Ltd. | 130 | 0.01 | % | 1 | 1 | 1 | ||||||||||||||
ChunWon Development Co., Ltd. | 193 | 0.19 | % | 39 | 39 | 39 |
57
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2018 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
WonIl Co., Ltd. | 999 | 0.15 | % | 50 | 50 | 50 | ||||||||||||||
SungLim Industrial Co., Ltd. | 29 | 0.03 | % | 1 | 1 | 1 | ||||||||||||||
Korea Minerals Co., Ltd. | 191 | 0.05 | % | 134 | 1 | 1 | ||||||||||||||
HyoDong Development Co., Ltd. | 119 | 0.15 | % | 24 | 24 | 24 | ||||||||||||||
Haspe Tech Co., Ltd. | 652 | 0.55 | % | 20 | 20 | 20 | ||||||||||||||
JoHyun Co., Ltd. | 350 | 1.56 | % | 18 | 18 | 18 | ||||||||||||||
KC Co., Ltd. | 5,107 | 0.17 | % | 26 | 26 | 26 | ||||||||||||||
SeongJi Industrial Co., Ltd. | 41 | 0.05 | % | 1 | 1 | 1 | ||||||||||||||
Dong Yang Metal Co., Ltd. | 2,951 | 1.97 | % | 161 | 147 | 147 | ||||||||||||||
Seyang Precision Ind.Co., Ltd. | 829 | 0.23 | % | 41 | 41 | 41 | ||||||||||||||
Dooriwon Food System Co., Ltd. | 13 | 0.27 | % | 1 | 1 | 1 | ||||||||||||||
ShinShin Co., Ltd | 339 | 1.12 | % | 17 | 17 | 17 | ||||||||||||||
Kitorang Co., Ltd. | 165 | 0.24 | % | 49 | 49 | 49 | ||||||||||||||
Sung Kwang Co., Ltd. | 23 | 0.37 | % | 6 | 6 | 6 | ||||||||||||||
Shinheung petrol. Co. Ltd. | 699 | 0.14 | % | 35 | 35 | 35 | ||||||||||||||
Force TEC Co., Ltd. | 3,501 | 0.02 | % | 18 | 18 | 18 | ||||||||||||||
Samsung Tech Co., Ltd. | 486 | 1.28 | % | 97 | 36 | 36 | ||||||||||||||
Tae Hyung Co., Ltd. | 28 | 0.43 | % | 20 | 20 | 20 | ||||||||||||||
Samyangplant Co., Ltd. | 323 | 0.60 | % | 16 | 16 | 16 | ||||||||||||||
Younil Metal Co., Ltd. | 41 | 0.21 | % | 21 | 21 | 21 | ||||||||||||||
Myungjin Tech Co., Ltd. | 20 | 0.54 | % | 4 | 4 | 4 | ||||||||||||||
Hankook Precision Ind Co., Ltd. | 110 | 0.06 | % | 11 | 11 | 11 | ||||||||||||||
Borneo International Furniture Co., Ltd. (*4) | 4,000 | 0.16 | % | 97 | 13 | 13 | ||||||||||||||
CJ Paradise Co., Ltd | 24 | 0.02 | % | 12 | 12 | 12 | ||||||||||||||
Han Young Technology Company Co., Ltd. | 35 | 0.00 | % | — | — | — | ||||||||||||||
STX Offshore & Shipbuilding Co., Ltd | 8,622 | 0.25 | % | 1,078 | 1,078 | 1,078 | ||||||||||||||
Ptotronics Co., Ltd. | 843 | 0.42 | % | 84 | 6 | 6 | ||||||||||||||
NFT Co., Ltd. | 136 | 0.40 | % | 8 | 8 | 8 | ||||||||||||||
Echoroba Co., Ltd. | 157 | 0.02 | % | 3 | 3 | 3 | ||||||||||||||
Hyundaitech Co., Ltd. | 1,363 | 0.87 | % | 27 | 27 | 27 | ||||||||||||||
Dasan Material Co. Ltd. | 29 | 0.04 | % | 22 | 22 | 22 | ||||||||||||||
Fish World Co., Ltd. | 47 | 0.21 | % | 2 | 2 | 2 | ||||||||||||||
SG Shinsung Engineering and Construction Co., Ltd. | 10 | 0.00 | % | 6 | 6 | 6 | ||||||||||||||
Samdo Industry Electric Co., Ltd. | 48 | 0.02 | % | 1 | 1 | 1 | ||||||||||||||
Taejung Industries Co., Ltd. | 9,268 | 0.30 | % | 5 | 5 | 5 | ||||||||||||||
Shinsei Trading Co., Ltd. | 64 | 0.72 | % | 6 | 6 | 6 | ||||||||||||||
Dynamic Co., Ltd. | 111 | 0.19 | % | 3 | 3 | 3 | ||||||||||||||
Green Alchemy Co., Ltd. | 38,202 | 1.48 | % | 191 | 17 | 17 | ||||||||||||||
Youone TBM Engineering & Construction Co., Ltd. | 615 | 0.27 | % | 31 | 31 | 31 | ||||||||||||||
KM Leatech Co., Ltd. | 1,648 | 0.98 | % | 8 | 8 | 8 | ||||||||||||||
Wonil T&I Co., Ltd. | 229 | 0.17 | % | 23 | 23 | 23 | ||||||||||||||
Semist Co., Ltd. | 555 | 0.80 | % | 3 | 3 | 3 | ||||||||||||||
DS POWER Co., Ltd. | 580,000 | 2.34 | % | 2,900 | 916 | 916 | ||||||||||||||
Sewon Bus Co., Ltd | 12 | 0.00 | % | — | — | — | ||||||||||||||
Enertec Co., Ltd. | 7,937 | 0.19 | % | 44 | 44 | 44 | ||||||||||||||
Sangji Co., Ltd. | 20 | 0.26 | % | 4 | 4 | 4 | ||||||||||||||
Bellie Doughnuts Co., Ltd. | 64 | 0.07 | % | 4 | 4 | 4 | ||||||||||||||
Possbell Engineering Co., Ltd. | 36 | 0.64 | % | 1 | 1 | 1 | ||||||||||||||
AIRTECH Information communication Co., Ltd | 2,379 | 0.60 | % | 12 | 12 | 12 | ||||||||||||||
CST co., ltd. | 4,998 | 0.28 | % | 100 | 100 | 100 | ||||||||||||||
TN Inc. | 1,416 | 2.00 | % | 71 | 71 | 71 | ||||||||||||||
Shin kwang Industrial Co., Ltd. | 884 | 0.35 | % | 55 | 55 | 55 | ||||||||||||||
Kiscom Co., Ltd. | 1,493 | 0.04 | % | 1 | 1 | 1 |
58
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2018 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Seil Electronics Co., Ltd. | 2,285 | 0.41 | % | 286 | 286 | 286 | ||||||||||||||
Wonil laser Co., Ltd | 157 | 0.37 | % | 16 | 16 | 16 | ||||||||||||||
Pyung Hwa Industrial Co., Ltd. | 3,388 | 3.00 | % | 85 | 85 | 85 | ||||||||||||||
Navanakorn Electric Co., Ltd. (*2) | 4,442,800 | 26.93 | % | 17,216 | 17,126 | 17,126 | ||||||||||||||
PT. Kedap Saayq | 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 1 LLC (*5) | — | 10.00 | % | — | — | — | ||||||||||||||
Choheung packing Co., Ltd. | 61 | 0.13 | % | 12 | 12 | 12 | ||||||||||||||
Jaewoo Co., Ltd. | 359 | 0.24 | % | 11 | 11 | 11 | ||||||||||||||
Wooyang HC Co., Ltd (*8) | 1,375 | 0.01 | % | 159 | 159 | 159 | ||||||||||||||
Sungsan Parts Co., Ltd. | 629 | 0.80 | % | 63 | 63 | 63 | ||||||||||||||
KMT Co., Ltd. | 1,411 | 0.93 | % | 21 | 21 | 21 | ||||||||||||||
TheYeonriji Co., Ltd. | 116 | 0.10 | % | 6 | 6 | 6 | ||||||||||||||
Flusys Co., Ltd. | 9 | 0.08 | % | 2 | 2 | 2 | ||||||||||||||
DaeSung Frontier Co., Ltd. | 2,203 | 1.11 | % | 221 | 221 | 221 | ||||||||||||||
DongSeo Electronics Co., Ltd. | 323 | 0.07 | % | 16 | 16 | 16 | ||||||||||||||
Daewoo Display Co., Ltd. | 177 | 0.03 | % | 5 | 5 | 5 | ||||||||||||||
Yeong-gwang Remicon Co., Ltd. | 15 | 0.12 | % | 2 | 2 | 2 | ||||||||||||||
NTS Co., Ltd. | 143 | 0.22 | % | 36 | 36 | 36 | ||||||||||||||
AID CO., LTD. | 1,212 | 0.57 | % | 36 | 36 | 36 | ||||||||||||||
ChangwonEco-friendly farming Corp. | 3 | 0.01 | % | — | — | — | ||||||||||||||
Kumo Hitech Co., Ltd. | 6,697 | 0.53 | % | 100 | 100 | 100 | ||||||||||||||
Kyung Pyo Industry Co., Ltd. | 186 | 0.76 | % | 19 | 19 | 19 | ||||||||||||||
Daedong Industry Co., Ltd. | 617 | 0.55 | % | 46 | 46 | 46 | ||||||||||||||
Doosung Heavy Industries Co., Ltd. | 53 | 0.06 | % | 5 | 5 | 5 | ||||||||||||||
Jangback Testiles Co., Ltd. | 494 | 5.05 | % | 49 | 49 | 49 | ||||||||||||||
Samjoo Hightech Co., Ltd. | 522 | 0.08 | % | 3 | 3 | 3 | ||||||||||||||
Samkwang Chemical Co., Ltd. | 204 | 1.27 | % | 51 | 51 | 51 | ||||||||||||||
Taekwang Industry Co., Ltd. | 1,327 | 0.48 | % | 93 | 93 | 93 | ||||||||||||||
Taekwang Precision Co., Ltd. | 54 | 0.47 | % | 54 | 54 | 54 | ||||||||||||||
SG Corp. | 213 | 0.54 | % | 21 | 21 | 21 | ||||||||||||||
Shinseung Chemical Industy Co., Ltd. | 5 | 0.01 | % | 60 | 60 | 60 | ||||||||||||||
KJ Alloy Co., Ltd. | 368 | 0.20 | % | 7 | 7 | 7 | ||||||||||||||
SMHi-tech Co., Ltd. | 22 | 0.39 | % | 22 | 22 | 22 | ||||||||||||||
Keum Mun Industry Co., Ltd. | 1,320 | 0.97 | % | 330 | 330 | 330 | ||||||||||||||
Puruen Environment Co., Ltd. | 967 | 1.34 | % | 19 | 19 | 19 | ||||||||||||||
Miretech Co., Ltd. | 9,111 | 0.27 | % | 18 | 18 | 18 | ||||||||||||||
SIE Co., Ltd. | 12 | 0.02 | % | 1 | 1 | 1 | ||||||||||||||
Soongwon Ind. Co., Ltd. | 150 | 0.40 | % | 53 | 53 | 53 | ||||||||||||||
Sejin Hightech Co., Ltd. | 17,980 | 0.16 | % | 18 | 18 | 18 | ||||||||||||||
Namcheong Corp. | 7,096 | 0.28 | % | 284 | 284 | 284 | ||||||||||||||
Eun Sung Enterprise Co. | 1,131 | 0.72 | % | 17 | 17 | 17 | ||||||||||||||
Dongdo Basalt Industry Co., Ltd. | 182 | 1.50 | % | 73 | 73 | 73 | ||||||||||||||
Shinyoung Textiles Co., Ltd. | 523 | 1.01 | % | 52 | 52 | 52 | ||||||||||||||
Bugook Cast Iron Co. | 135 | 0.71 | % | 14 | 14 | 14 | ||||||||||||||
Ilwoo Steel Co., Ltd. | 41 | 0.28 | % | 17 | 17 | 17 | ||||||||||||||
Dong-un Tech Co., Ltd. | 1,159 | 6.28 | % | 81 | 81 | 81 | ||||||||||||||
Wongwang Door Corp. | 575 | 1.00 | % | 29 | 29 | 29 | ||||||||||||||
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284,670 | 189,439 | 189,439 | ||||||||||||||||||
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— | 399,495 | 399,495 | ||||||||||||||||||
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59
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
10. | Financial assets at fair value through other comprehensive income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of December 31, 2019 and 2018 are as follows, continued: |
(*1) | The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide. |
(*2) | 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 ofavailable-for-sale financial assets in other comprehensive income or loss during the year ended December 31, 2018. |
(*4) | The number of shares owned has changed due to capital reduction without refund (3:1), consolidation of stocks (10,000:1), and split of stock(1:2,000) during the year ended December 31, 2018 |
(*5) | As described in note 20, this is reclassified to financial assets at fair value through other comprehensive income due to loss of significant influence of the Group. |
(*6) | The number of shares owned has changed due to the stock merge (4:1) during the year ended December 31, 2018. |
(*7) | The number of shares owned has changed due to the stock merge (5:1) during the year ended December 31, 2018. |
(*8) | The number of shares owned has changed due to the stock merge (10:1) during the year ended December 31, 2018. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
11. | Financial assets at amortized cost |
Financial assets at amortized cost as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 1,609 | ||||||||||||||||
Others | 12,000 | — | — | — | 12,000 | |||||||||||||||
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— | — | — | 13,609 | |||||||||||||||||
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Current | — | — | — | 12,302 | ||||||||||||||||
Non-current | 1,307 | — | — | — | 1,307 | |||||||||||||||
In millions of won | 2018 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 3,042 | ||||||||||||||||
Others | 11,000 | — | — | — | 11,000 | |||||||||||||||
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— | — | — | 14,042 | |||||||||||||||||
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Current | — | — | — | 11,956 | ||||||||||||||||
Non-current | 2,086 | — | — | — | 2,086 |
12. | Derivatives |
(1) | Derivatives as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Derivative assets | ||||||||||||||||
Currency forward | 43,931 | 2,128 | 12,606 | |||||||||||||
Currency swap | 27,597 | 229,258 | 39,979 | 43,436 | ||||||||||||
Interest rate swap | — | 7,592 | — | 2,342 | ||||||||||||
Others (*1) | — | 2,634 | — | 1,844 | ||||||||||||
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283,415 | 42,107 | 60,228 | ||||||||||||||
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Derivative liabilities | ||||||||||||||||
Currency forward | — | 1,956 | — | |||||||||||||
Currency swap | 59,327 | 45,184 | 14,881 | 233,690 | ||||||||||||
Interest rate swap | 451 | 50,756 | 1,439 | 58,042 | ||||||||||||
Others (*2,3) | 6,205 | 956 | 2,155 | — | ||||||||||||
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96,896 | 20,431 | 291,732 | ||||||||||||||
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(*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 year ended December 31, 2019. As described in Note 16, the Group has a right to purchase the shares of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Group, and the amount is the fair value of the stock option. |
(*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’. |
(*3) | The Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and other 4 investors, and recognized its evaluated amount as other derivative liabilities. |
61
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of December 31, 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 | ||||||||||||||
Citibank | 2019.12.30 | 2020.01.23 | 12,943 | USD | 11,167 | 1,159.10 | ||||||||||||||
Standard Chartered | 2019.12.17 | 2020.01.02 | 73,872 | EUR | 56,800 | 1,300.57 | ||||||||||||||
Nonghyup Bank | 2019.12.02 | 2020.01.03 | 9,436 | USD | 8,000 | 1,179.55 | ||||||||||||||
Mizuho Bank | 2019.12.03 | 2020.01.06 | 9,482 | USD | 8,000 | 1,185.25 | ||||||||||||||
Hana Bank | 2019.12.04 | 2020.01.07 | 8,350 | USD | 7,000 | 1,192.82 | ||||||||||||||
Kookmin Bank | 2019.12.05 | 2020.01.09 | 11,895 | USD | 10,000 | 1,189.45 | ||||||||||||||
CCB | 2019.12.05 | 2020.01.09 | 11,895 | USD | 10,000 | 1,189.50 | ||||||||||||||
Standard Chartered | 2019.12.06 | 2020.01.10 | 11,891 | USD | 10,000 | 1,189.05 | ||||||||||||||
Credit Agricole | 2019.12.09 | 2020.01.13 | 11,885 | USD | 10,000 | 1,188.47 | ||||||||||||||
Hana Bank | 2019.12.10 | 2020.01.14 | 11,912 | USD | 10,000 | 1,191.23 | ||||||||||||||
Korea Development Bank | 2019.12.11 | 2020.01.15 | 11,925 | USD | 10,000 | 1,192.50 | ||||||||||||||
Nonghyup Bank | 2019.12.11 | 2020.01.15 | 5,962 | USD | 5,000 | 1,192.45 | ||||||||||||||
Mizuho Bank | 2019.12.11 | 2020.01.15 | 5,963 | USD | 5,000 | 1,192.50 | ||||||||||||||
CCB | 2019.12.12 | 2020.01.16 | 7,118 | USD | 6,000 | 1,186.35 | ||||||||||||||
Morgan Stanley | 2019.12.16 | 2020.01.17 | 5,854 | USD | 5,000 | 1,170.85 | ||||||||||||||
Woori Bank | 2019.12.19 | 2020.01.22 | 11,636 | USD | 10,000 | 1,163.55 | ||||||||||||||
Shinhan Bank | 2019.12.19 | 2020.01.22 | 11,635 | USD | 10,000 | 1,163.45 | ||||||||||||||
CCB | 2019.12.27 | 2020.01.31 | 11,597 | USD | 10,000 | 1,159.65 | ||||||||||||||
Kookmin Bank | 2019.12.30 | 2020.02.03 | 5,786 | USD | 5,000 | 1,157.20 | ||||||||||||||
Shinhan Bank | 2019.12.18 | 2020.01.07 | 9,901 | USD | 8,500 | 1,164.86 | ||||||||||||||
Hana Bank | 2019.12.13 | 2020.01.07 | 4,678 | USD | 4,000 | 1,169.45 | ||||||||||||||
Hana Bank | 2019.12.20 | 2020.01.07 | 8,136 | USD | 7,000 | 1,162.23 | ||||||||||||||
BNP Paribas | 2019.12.27 | 2020.01.13 | 3,480 | USD | 3,000 | 1,160.10 | ||||||||||||||
Societe Generale | 2019.12.27 | 2020.01.13 | 8,701 | USD | 7,500 | 1,160.10 | ||||||||||||||
Korea Development Bank | 2019.12.30 | 2020.01.23 | 4,630 | USD | 4,000 | 1,157.40 | ||||||||||||||
BNP Paribas | 2019.12.12 | 2020.01.16 | 4,739 | USD | 4,000 | 1,184.85 | ||||||||||||||
Mizuho Bank | 2019.12.12 | 2020.01.16 | 3,558 | USD | 3,000 | 1,186.00 | ||||||||||||||
MUFG | 2019.12.17 | 2020.01.21 | 5,823 | USD | 5,000 | 1,164.60 | ||||||||||||||
Nova Scotia | 2019.12.17 | 2020.01.21 | 5,824 | USD | 5,000 | 1,164.70 | ||||||||||||||
BNP Paribas | 2019.12.20 | 2020.01.22 | 2,290 | USD | 1,975 | 1,159.48 | ||||||||||||||
Nonghyup Bank | 2019.12.20 | 2020.01.22 | 11,605 | USD | 10,000 | 1,160.50 | ||||||||||||||
Nova Scotia | 2019.12.30 | 2020.02.03 | 5,778 | USD | 5,000 | 1,155.65 | ||||||||||||||
Mizuho Bank | 2019.12.30 | 2020.02.03 | 5,777 | USD | 5,000 | 1,155.30 | ||||||||||||||
HSBC | 2019.12.13 | 2020.09.10 | 46,580 | USD | 40,000 | 1,164.50 | ||||||||||||||
Nova Scotia | 2019.12.13 | 2020.09.10 | 34,959 | USD | 30,000 | 1,165.30 | ||||||||||||||
Nova Scotia | 2019.12.16 | 2020.12.03 | 11,657 | USD | 10,000 | 1,165.70 | ||||||||||||||
Nonghyup Bank | 2019.12.16 | 2020.12.03 | 23,324 | USD | 20,000 | 1,166.20 | ||||||||||||||
Mizuho Bank | 2019.12.17 | 2020.01.10 | 10,537 | USD | 9,000 | 1,170.80 | ||||||||||||||
Mizuho Bank | 2019.12.19 | 2020.01.13 | 9,314 | USD | 8,000 | 1,164.30 | ||||||||||||||
Mizuho Bank | 2019.12.24 | 2020.01.04 | 5,228 | USD | 4,500 | 1,161.85 | ||||||||||||||
HSBC | 2019.12.26 | 2020.01.23 | 10,443 | USD | 9,000 | 1,160.30 | ||||||||||||||
Mizuho Bank | 2019.12.30 | 2020.01.23 | 4,624 | USD | 4,000 | 1,155.90 | ||||||||||||||
Standard Chartered | 2019.12.03 | 2020.01.06 | 315 | USD | 266 | 1,186.05 | ||||||||||||||
Nova Scotia | 2019.12.06 | 2020.01.10 | 4,393 | USD | 3,700 | 1,187.35 | ||||||||||||||
Credit Agricole | 2019.12.06 | 2020.01.10 | 4,761 | USD | 4,000 | 1,190.35 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of December 31, 2019 are as follows, continued: |
In millions of won and thousands of foreign currencies except contract exchange rate information | ||||||||||||||||||||
Contract amounts | Contract exchange rate (in won) | |||||||||||||||||||
Counterparty | Contract date | Maturity date | Pay | Receive | ||||||||||||||||
Nova Scotia | 2019.12.10 | 2020.01.13 | USD | 1,250 | ||||||||||||||||
Standard Chartered | 2019.12.12 | 2020.01.16 | 8,303 | USD | 7,000 | 1,186.10 | ||||||||||||||
Credit Agricole | 2019.12.12 | 2020.01.16 | 5,930 | USD | 5,000 | 1,185.95 | ||||||||||||||
Societe Generale | 2019.12.12 | 2020.01.16 | 5,931 | USD | 5,000 | 1,186.20 | ||||||||||||||
Nova Scotia | 2019.12.12 | 2020.01.16 | 6,525 | USD | 5,500 | 1,186.30 | ||||||||||||||
Standard Chartered | 2019.12.16 | 2020.01.21 | 9,367 | USD | 8,000 | 1,170.90 | ||||||||||||||
Nova Scotia | 2019.12.17 | 2020.01.21 | 4,648 | USD | 4,000 | 1,162.00 | ||||||||||||||
Hana Bank | 2019.12.19 | 2020.01.23 | 6,055 | USD | 5,200 | 1,164.40 | ||||||||||||||
Woori Bank | 2019.12.20 | 2020.01.28 | 9,414 | USD | 8,100 | 1,162.20 | ||||||||||||||
Shinhan Bank | 2019.12.20 | 2020.01.28 | 4,939 | USD | 4,250 | 1,162.15 | ||||||||||||||
Shinhan Bank | 2019.12.20 | 2020.01.28 | 5,806 | USD | 5,000 | 1,161.25 | ||||||||||||||
Shinhan Bank | 2019.12.26 | 2020.01.30 | 7,539 | USD | 6,500 | 1,159.85 | ||||||||||||||
Woori Bank | 2019.12.26 | 2020.01.30 | 4,060 | USD | 3,500 | 1,159.90 | ||||||||||||||
Shinhan Bank | 2019.12.30 | 2020.02.03 | 4,049 | USD | 3,500 | 1,156.80 | ||||||||||||||
Hana Bank | 2019.07.31 | 2020.07.14 | 4,993 | USD | 4,257 | 1,173.00 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(3) | Currency swap contracts which are not designated as hedging instruments as of December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information | ||||||||||||||||||||
Counterparty | Contract amount | Contract interest rate | Contract exchange rate (in won, USD) | |||||||||||||||||
Contract year | 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 | |||||||||||||
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 | 115,388 | 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 | |||||||||||||
HSBC | 2019~2024 | USD | 205,500 | AUD | 300,000 | 3M Libor+0.78% | 3M BBSW+0.97% | 0.69 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(4) | Currency swap contracts which are designated as hedging instruments as of December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information | ||||||||||||||||||||
Contract amount | Contract interest rate | Contract exchange rate (in won, USD) | ||||||||||||||||||
Counterparty | Contract year | 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% | 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 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(5) | Interest rate swap contracts which are not designated as hedging instruments as of December 31, 2019 are as follows: |
In millions of won and thousands of USD | Contract interest rate per annum | |||||||||||
Counterparty | Contract year | Contract amount | 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. Depending on exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from September 18, 2022. |
(*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. Depending on exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from June 15, 2023. |
(6) | Interest rate swap contracts which are designated as hedging instruments as of December 31, 2019 are as follows: |
In millions of won and thousands of USD | Contract interest rate per annum | |||||||||||||
Counterparty | Contract year | Contract amount | 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 | |||||||||
Export-import bank of Korea | 2016~2036 | USD | 80,514 | 3.00% | 6M USD Libor |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
12. | Derivatives, Continued |
(7) | Gains and losses on valuation and transaction of derivatives for the year ended December 31, 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) (*) | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Currency forward | 12,632 | 12,488 | 23,991 | — | — | |||||||||||||||||||
Currency swap | 310,732 | 145,088 | 110,813 | 123,670 | 38,802 | (12,516 | ) | |||||||||||||||||
Interest rate swap | (16,231 | ) | (2,949 | ) | (36,886 | ) | (364 | ) | (3,075 | ) | 6,087 | |||||||||||||
Other derivatives | (1,416 | ) | (1,568 | ) | — | — | — | — | ||||||||||||||||
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| |||||||||||||
153,203 | 86,415 | 147,297 | 35,727 | (6,429 | ) | |||||||||||||||||||
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|
(*) | For the year ended December 31, 2019, the net gain on valuation of derivatives applying cash flow hedge accounting of |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
13. | Other Financial Assets |
(1) | Other financial assets as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Loans | 725,755 | 123,657 | 639,673 | |||||||||||||
Allowance for doubtful accounts | (31 | ) | (15,063 | ) | (12 | ) | (4,940 | ) | ||||||||
Present value discount | (847 | ) | (35,218 | ) | (992 | ) | (38,712 | ) | ||||||||
Long-term/short-term financial instruments (*) | 1,351,971 | 608,256 | 1,869,286 | 448,741 | ||||||||||||
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| |||||||||
1,283,730 | 1,991,939 | 1,044,762 | ||||||||||||||
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|
(*) | From prior year, certain financial assets at fair value previously recognized as other financial assets is reclassified to financial assets at fair value through profit or loss upon the adoption of KIFRS 1109 ‘Financial Instruments’. |
(2) | Loans and receivables as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Face value | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Short-term loans | ||||||||||||||||
Loans for tuition | — | (847 | ) | 32,789 | ||||||||||||
Loans for housing | 17,113 | — | — | 17,113 | ||||||||||||
Other loans | 13,362 | (31 | ) | — | 13,331 | |||||||||||
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64,111 | (31 | ) | (847 | ) | 63,233 | |||||||||||
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Long-term loans | ||||||||||||||||
Loans for tuition | 419,905 | — | (35,197 | ) | 384,708 | |||||||||||
Loans for housing | 199,454 | — | — | 199,454 | ||||||||||||
Loans for related parties | 89,132 | (4,930 | ) | — | 84,202 | |||||||||||
Other loans | 17,264 | (10,133 | ) | (21 | ) | 7,110 | ||||||||||
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725,755 | (15,063 | ) | (35,218 | ) | 675,474 | |||||||||||
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| |||||||||
(15,094 | ) | (36,065 | ) | 738,707 | ||||||||||||
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|
In millions of won | 2018 | |||||||||||||||
Face value | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Short-term loans | ||||||||||||||||
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 | ||||||||||||||||
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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
13. | Other Financial Assets, Continued |
(3) | Changes in the allowance for doubtful accounts of loans and receivables for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 8,948 | |||||||
Bad debt expense | 10,142 | 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 December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Time deposits | 257,857 | 1,602,285 | 63,358 | |||||||||||||
CP | 40,000 | — | — | — | ||||||||||||
CD | 15,000 | — | 10,000 | — | ||||||||||||
RP | 40,000 | — | — | — | ||||||||||||
Others | 222,000 | 350,399 | 257,001 | 385,383 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
608,256 | 1,869,286 | 448,741 | ||||||||||||||
|
|
|
|
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
14. | Inventories |
Inventories as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||
Acquisition cost | Valuation allowance | Book value | ||||||||||
Raw materials | (1,430 | ) | 3,789,013 | |||||||||
Merchandises | 340 | — | 340 | |||||||||
Work-in-progress | 165,073 | — | 165,073 | |||||||||
Finished goods | 58,280 | — | 58,280 | |||||||||
Supplies | 2,121,363 | (4,369 | ) | 2,116,994 | ||||||||
Inventories-in-transit | 906,267 | — | 906,267 | |||||||||
Other inventories | 14,733 | — | 14,733 | |||||||||
|
|
|
|
|
| |||||||
(5,799 | ) | 7,050,700 | ||||||||||
|
|
|
|
|
|
In millions of won | 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 | |||||||||
|
|
|
|
|
| |||||||
(7,544 | ) | 7,188,253 | ||||||||||
|
|
|
|
|
|
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 years ended December 31, 2019 and 2018 were4,872 million andW3,723 million, respectively.W
The amounts of loss from inventory valuation included in other gains or losses for the years ended December 31, 2019 and 2018 were3,127million andW1,953 million, respectively.W
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
15. | Non-Financial Assets |
Non-financial assets as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance payment | 2,694 | 156,073 | 160,628 | |||||||||||||
Prepaid expenses (*1) | 308,017 | 84,421 | 290,944 | 90,449 | ||||||||||||
Others (*2) | 750,576 | 79,814 | 431,871 | 76,075 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
166,929 | 878,888 | 327,152 | ||||||||||||||
|
|
|
|
|
|
|
|
(*1) | Prepaid expenses amounting to |
(*2) | Details of others as of December 31, 2019 and 2018are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Greenhouse gas emissions rights | — | 93,749 | — | |||||||||||||
Other quick assets (*3) | 313,014 | 79,814 | 338,122 | 76,075 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
79,814 | 431,871 | 76,075 | ||||||||||||||
|
|
|
|
|
|
|
|
(*3) | The Group recognized |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries |
(1) | Consolidated subsidiaries as of December 31, 2019 and 2018 are as follows: |
Subsidiaries | Key operation activities | Location | Percentage of ownership (%) | |||||||||
2019 | 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 | 80.00 | % | 80.00 | % | ||||||
Korea Electric Power Nigeria Ltd.(*7) | Operation of utility plant | NIGERIA | — | 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 | % | ||||||
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 | 100.00 | % | 100.00 | % | ||||||
EWP Barbados 1 SRL | Holding company | BARBADOS | 100.00 | % | 100.00 | % | ||||||
California Power Holdings, LLC | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
Gyeonggi Green Energy Co., Ltd. | Power generation | KOREA | 62.01 | % | 62.01 | % | ||||||
PT. Tanggamus Electric Power | Power generation | INDONESIA | 52.50 | % | 52.50 | % | ||||||
Gyeongju Wind Power Co., Ltd. | Power generation | KOREA | 70.00 | % | 70.00 | % | ||||||
KOMIPO America Inc. | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
EWPRC Biomass Holdings, LLC | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
KOSEP USA, INC. | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
PT. EWP Indonesia | Holding company | INDONESIA | 99.96 | % | 99.96 | % |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of December 31, 2019 and 2018 are as follows, continued: |
Percentage of ownership (%) | ||||||||||||
Subsidiaries | Key operation activities | Location | 2019 | 2018 | ||||||||
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.(*7) | Holding company | SINGAPORE | — | 100.00 | % | |||||||
KEPCO KPS Philippines Corp. | Utility plant maintenance and others | PHILIPPINES | 99.99 | % | 99.99 | % | ||||||
KOSPO Chile SpA | Holding company | CHILE | 100.00 | % | 100.00 | % | ||||||
PT. KOWEPO Sumsel Operation And Maintenance Services | Utility plant maintenance and others | INDONESIA | 95.00 | % | 95.00 | % | ||||||
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 | % | ||||||
VI 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 | % | ||||||
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 | 100.00 | % | 100.00 | % | ||||||
KEPCO-LG CNS Mangilao Holdings LLC (*8) | Holding company | USA | 70.00 | % | 70.00 | % | ||||||
Mangilao Investment LLC | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
KEPCO-LG CNS Mangilao Solar, LLC | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
Jeju Hanlim Offshore Wind Co., Ltd. | Power generation | KOREA | 75.99 | % | 75.99 | % | ||||||
PT. Siborpa Eco Power | Construction and operation of utility plant | INDONESIA | 55.00 | % | 55.00 | % | ||||||
BSKE-New Industry Fund VII | Holding company | KOREA | 81.67 | % | 81.67 | % | ||||||
e-New Industry LB Fund 1 | Holding company | KOREA | 76.11 | % | 76.11 | % | ||||||
Songhyune-New Industry Fund | Holding company | KOREA | 80.65 | % | 80.65 | % | ||||||
PT. Korea Energy Indonesia | Utility plant maintenance | 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 | % | — | |||||||
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 | % | — |
73
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of December 31, 2019 and 2018 are as follows, continued: |
Percentage of ownership (%) | ||||||||||||
Subsidiaries | Key operation activities | Location | 2019 | 2018 | ||||||||
SE Green Energy Co., Ltd. (*5) | Power generation | KOREA | 84.80 | % | — | |||||||
KEPCO Mangilao America LLC | Holding company | USA | 100.00 | % | — | |||||||
Mangilao Intermediate Holdings LLC | Holding company | USA | 100.00 | % | — | |||||||
KEPCO CSC Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | — | |||||||
KOAK Power Limited | Facility maintenance | Parkistan | 100.00 | % | — | |||||||
KOMIPO Europe B.V. | Holding company | Sweden | 100.00 | % | — | |||||||
Haenanum Energy Fund | Holding company | KOREA | 99.64 | % | — | |||||||
Paju Ecoenergy Co., Ltd. | Power generation | KOREA | 89.00 | % | — |
(*1) | Considering treasury stocks, the effective percentage of ownership is 66.08%. |
(*2) | The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group obtained the majority of the voting power through the shareholders’ agreement. |
(*3) | As of 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) | The Liquidation process is under way by the appointment of a liquidator, and the Group has been reclassified the invested amount as assets held for sale as of December 31, 2019. |
(*7) | The liquidation process has been completed during the year ended December 31, 2019. |
(*8) | The Group does not hold a stake, but it is included in subsidiaries because the Group has control overKEPCO-LG CNS Mangilao Holdings LLC with nomination rights among 4 out of 6 board members. |
(2) | Subsidiaries newly included in and excluded from consolidation for the year ended December 31, 2019 are as follows: |
<Subsidiaries newly included in consolidation during the year ended December 31, 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 | |
KEPCO Mangilao America LLC | Newly established | |
Mangilao Intermediate Holdings LLC | Newly established | |
KEPCO CSC Co., Ltd. | Newly established | |
KOAK Power Limited | Newly established | |
KOMIPO Europe B.V. | Newly established | |
Haenanum Energy Fund | Newly established | |
Paju Ecoenergy Co., Ltd. | Newly established |
<Subsidiaries excluded from consolidation during the year ended December 31, 2019>
Subsidiaries | Reason | |
KEPCO Singapore Holdings Pte., Ltd. | Liquidation | |
Korea Electric Power Nigeria Ltd. | Liquidation | |
Garolim Tidal Power Plant Co., Ltd. | Under Liquidation Process |
74
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Korea Hydro & Nuclear Power Co., Ltd. | 33,917,275 | 8,969,072 | 306,007 | |||||||||||||
Korea South-East Power Co., Ltd. | 10,938,358 | 5,866,642 | 5,385,387 | 41,006 | ||||||||||||
Korea Midland Power Co., Ltd. | 12,684,828 | 8,977,766 | 4,479,707 | (28,449 | ) | |||||||||||
Korea Western Power Co., Ltd. | 10,514,438 | 6,637,451 | 4,448,992 | (46,061 | ) | |||||||||||
Korea Southern Power Co., Ltd. | 10,884,799 | 6,608,301 | 5,084,907 | (41,342 | ) | |||||||||||
Korea East-West Power Co., Ltd. | 9,724,311 | 5,022,921 | 4,855,964 | 56,698 | ||||||||||||
KEPCO Engineering & Construction Company, Inc. | 735,207 | 242,994 | 448,635 | 26,398 | ||||||||||||
KEPCO Plant Service & Engineering Co., Ltd. | 1,356,983 | 294,757 | 1,244,613 | 157,737 | ||||||||||||
KEPCO Nuclear Fuel Co., Ltd. | 831,604 | 429,799 | 309,055 | 24,618 | ||||||||||||
KEPCO KDN Co., Ltd. | 604,458 | 159,807 | 625,567 | 42,205 | ||||||||||||
KEPCO International HongKong Ltd. | 138,942 | 633 | — | 3,330 | ||||||||||||
KEPCO International Philippines Inc. | 107,224 | 371 | — | 67,991 | ||||||||||||
KEPCO Gansu International Ltd. | 10,448 | 545 | — | (20 | ) | |||||||||||
KEPCO Philippines Holdings Inc. | 200,503 | 6,656 | — | 66,200 | ||||||||||||
KEPCO Philippines Corporation | 6,706 | 332 | — | (52 | ) | |||||||||||
KEPCO Ilijan Corporation | 371,377 | 56,156 | 95,072 | 40,818 | ||||||||||||
KEPCO Lebanon SARL | 1,835 | 9,786 | — | 255 | ||||||||||||
KEPCO Neimenggu International Ltd. | 200,858 | — | — | (354 | ) | |||||||||||
KEPCO Shanxi International Ltd. | 538,604 | 208,895 | — | 151 | ||||||||||||
KOMIPO Global Pte Ltd. | 269,302 | 463 | — | 10,400 | ||||||||||||
KEPCO Netherlands B.V. | 122,577 | 101 | — | 948 | ||||||||||||
KOREA Imouraren Uranium Investment Corp. | 14,173 | 111 | — | (49,716 | ) | |||||||||||
KEPCO Australia Pty., Ltd. | 364 | 14 | — | (395,914 | ) | |||||||||||
KOSEP Australia Pty., Ltd. | 32,782 | 2,911 | 15,514 | 3,935 | ||||||||||||
KOMIPO Australia Pty., Ltd. | 40,898 | 2,909 | 15,514 | 3,766 | ||||||||||||
KOWEPO Australia Pty., Ltd. | 44,182 | 5,772 | 15,514 | 2,761 | ||||||||||||
KOSPO Australia Pty., Ltd. | 37,254 | 5,012 | 15,514 | 2,638 | ||||||||||||
KEPCO Middle East Holding Company | 102,164 | 87,834 | — | 5,934 | ||||||||||||
Qatrana Electric Power Company | 490,723 | 322,857 | 20,773 | 21,807 | ||||||||||||
KHNP Canada Energy, Ltd. | 44,639 | 43 | — | (10 | ) | |||||||||||
KEPCO Bylong Australia Pty., Ltd. | 45,207 | 355,163 | — | (220,909 | ) | |||||||||||
Korea Waterbury Uranium Limited Partnership | 20,717 | 167 | — | (77 | ) | |||||||||||
KEPCO Holdings de Mexico | 187 | 25 | — | (14 | ) | |||||||||||
KST Electric Power Company | 539,952 | 449,459 | 55,783 | (20,797 | ) | |||||||||||
KEPCO Energy Service Company | 2,262 | 1,995 | 5,984 | (481 | ) | |||||||||||
KEPCO Netherlands S3 B.V. | 50,352 | 49 | — | 2,637 | ||||||||||||
PT. KOMIPO Pembangkitan Jawa Bali | 12,391 | 5,719 | 18,722 | 4,312 | ||||||||||||
PT. Cirebon Power Service | 2,089 | 313 | 8,049 | 406 | ||||||||||||
KOWEPO International Corporation | — | 10 | — | (2 | ) | |||||||||||
KOSPO Jordan, LLC | 17,489 | 1,521 | 10,878 | 2,634 | ||||||||||||
EWP Philippines Corporation | 1,691 | 888 | — | (111 | ) | |||||||||||
EWP America Inc. (*1) | 66,622 | 2,619 | 21,719 | (6,497 | ) | |||||||||||
KNF Canada Energy Limited | 1,933 | 24 | — | (48 | ) | |||||||||||
EWP Barbados 1 SRL | 279,295 | 1,031 | 2,914 | 2,368 | ||||||||||||
Gyeonggi Green Energy Co., Ltd. | 194,425 | 159,078 | 13,717 | (73,394 | ) | |||||||||||
PT. Tanggamus Electric Power | 228,601 | 195,826 | 2,256 | (4,529 | ) | |||||||||||
Gyeongju Wind Power Co., Ltd. | 113,745 | 75,427 | 15,548 | 3,384 | ||||||||||||
KOMIPO America Inc. | 9,424 | 593 | 118 | (1,033 | ) | |||||||||||
KOSEP USA, Inc. | 1 | 5,147 | — | (119 | ) | |||||||||||
PT. EWP Indonesia | 34,455 | 5 | — | 5,124 | ||||||||||||
KEPCO Netherlands J3 B.V. | 120,006 | 74 | — | (79 | ) | |||||||||||
Korea Offshore Wind Power Co., Ltd. | 284,495 | 117,527 | — | (12,768 | ) | |||||||||||
Global One Pioneer B.V. | 180 | 73 | — | (86 | ) | |||||||||||
Global Energy Pioneer B.V. | 348 | 80 | — | (90 | ) | |||||||||||
Mira Power Limited | 356,111 | 285,577 | — | (971 | ) | |||||||||||
KOSEP Material Co., Ltd. | 2,788 | 1,186 | 3,357 | 22 | ||||||||||||
Commerce and Industry Energy Co., Ltd. | 90,637 | 43,985 | 32,728 | (7,532 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KEPCO KPS Philippines Corp. | 1,341 | 6,246 | 2 | |||||||||||||
KOSPO Chile SpA | 134,827 | 49,183 | — | (456 | ) | |||||||||||
PT. KOWEPO Sumsel Operation And Maintenance Services | 135 | 262 | — | (1,104 | ) | |||||||||||
HeeMang Sunlight Power Co., Ltd. | 12,185 | 8,545 | 643 | 75 | ||||||||||||
Fujeij Wind Power Company | 218,333 | 196,964 | — | 5,515 | ||||||||||||
KOSPO Youngnam Power Co., Ltd. | 398,495 | 307,226 | 318,338 | 3,514 | ||||||||||||
VI Carbon Professional Private Special Asset Investment Trust 1 | 3,002 | — | — | 12 | ||||||||||||
Chitose Solar Power Plant LLC | 121,457 | 106,254 | 17,103 | 5,480 | ||||||||||||
KEPCO Energy Solution Co., Ltd. | 308,188 | 2,142 | 2,843 | 2,805 | ||||||||||||
Solar School Plant Co., Ltd. | 208,730 | 3,269 | 1,962 | 2,553 | ||||||||||||
KOSPO Power Services Limitada | 3,244 | 1,564 | 10,013 | 452 | ||||||||||||
Energy New Industry Specialized Investment Private Investment Trust (*2) | 100,116 | 17,359 | 2,418 | (7,735 | ) | |||||||||||
KOEN Bylong Pty., Ltd. | — | 39 | — | (14 | ) | |||||||||||
KOMIPO Bylong Pty., Ltd. | 4 | 43 | — | (14 | ) | |||||||||||
KOWEPO Bylong Pty., Ltd. | 4 | 40 | — | (12 | ) | |||||||||||
KOSPO Bylong Pty., Ltd. | 4 | 40 | — | (12 | ) | |||||||||||
EWP Bylong Pty., Ltd. | 4 | 40 | — | (12 | ) | |||||||||||
KOWEPO Lao International | 5,430 | 575 | 4,308 | 1,584 | ||||||||||||
KEPCO US Inc. | 17,231 | — | — | — | ||||||||||||
KEPCO Alamosa LLC | 33,515 | 183 | 145 | (311 | ) | |||||||||||
KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC) | 65,468 | 50,348 | 8,739 | (1,902 | ) | |||||||||||
KEPCO-LG CNS Mangilao Holdings LLC | 27,439 | 30,287 | — | (1,240 | ) | |||||||||||
Mangilao Investment LLC | 39,972 | — | — | — | ||||||||||||
KEPCO-LG CNS Mangilao Solar, LLC | 39,373 | 11 | — | (524 | ) | |||||||||||
Jeju Hanlim Offshore Wind Co., Ltd. | 14,328 | 558 | — | (2,459 | ) | |||||||||||
PT. Siborpa Eco Power | 11,574 | 71 | — | (1,165 | ) | |||||||||||
PT. Korea Energy Indonesia | 1,592 | 121 | 2,462 | 323 | ||||||||||||
KOLAT SpA | 31,178 | 167 | 656 | (296 | ) | |||||||||||
KEPCO California, LLC | 44,074 | 936 | 358 | (513 | ) | |||||||||||
KEPCO Mojave Holdings, LLC | 103,815 | 69,544 | — | (4,215 | ) | |||||||||||
Incheon Fuel Cell Co., Ltd. | 22,669 | 475 | — | (1,010 | ) | |||||||||||
KOEN Service Co., Ltd. | 5,347 | 4,252 | 25,890 | 543 | ||||||||||||
KOMIPO Service Co., Ltd. | 3,327 | 2,622 | 24,556 | 146 | ||||||||||||
KOWEPO Service Co., Ltd. | 4,228 | 3,302 | 23,982 | 389 | ||||||||||||
KOSPO Service Co., Ltd. | 3,493 | 2,788 | 18,741 | 135 | ||||||||||||
EWP Service Co., Ltd. | 4,786 | 4,064 | 20,837 | 162 | ||||||||||||
PT. KOMIPO Energy Indonesia | 2,647 | 196 | 1,392 | 79 | ||||||||||||
KNF partners Co., Ltd. | 1,378 | 890 | 3,383 | 187 | ||||||||||||
KOSPO USA Inc. | 5,896 | 127 | — | (1,408 | ) | |||||||||||
Nambu USA LLC | 245 | 1 | — | 245 | ||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 156,708 | 121,724 | 19,670 | 1,154 | ||||||||||||
KEPCO MCS Co., Ltd. | 26,510 | 22,151 | 129,393 | 3,408 | ||||||||||||
KEPCO FMS Co., Ltd. | 11,336 | 10,638 | 37,627 | 198 | ||||||||||||
Firstkeepers Co., Ltd. | 1,552 | 2,800 | 121 | (2,239 | ) | |||||||||||
Secutec Co., Ltd. | 322 | 229 | — | (597 | ) | |||||||||||
SE Green Energy Co., Ltd. | 132,727 | 105,619 | — | 816 | ||||||||||||
KEPCO Mangilao America LLC | — | — | — | — | ||||||||||||
Mangilao Intermediate Holdings LLC | 13,220 | 12,774 | — | (66 | ) | |||||||||||
KEPCO CSC Co., Ltd. | 837 | 51 | — | (14 | ) | |||||||||||
KOAK Power Limited | 15,930 | — | — | — | ||||||||||||
KOMIPO Europe B.V. | 7,362 | — | — | (286 | ) | |||||||||||
Haenanum Energy Fund | 28,101 | 1 | — | 1 | ||||||||||||
Paju Ecoenergy Co., Ltd. | 53,839 | — | — | — |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
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 | ) | |||||||||||
KEPCO Bylong Australia Pty., Ltd. | 254,398 | 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 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Mira Power Limited | 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 | ||||||||||||
VI 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 | — | — | ||||||||||||
KOSPO Bylong Pty., Ltd. | 5,544 | 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. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(4) | Significant restrictions on the Group’s power over the subsidiaries as of December 31, 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 |
(5) | As of December 31, 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 Group’s establishment date. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(6) | Details ofnon-controlling interest prior to intra-group eliminations as of and for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||||||
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 | 779,764 | 257,593 | 864,596 | 2,075,884 | ||||||||||||||||
Non-current assets | 197,446 | 577,219 | 477,614 | 3,169,317 | 4,421,596 | |||||||||||||||
Current liabilities | (11,990 | ) | (247,737 | ) | (223,522 | ) | (450,311 | ) | (933,560 | ) | ||||||||||
Non-current liabilities | (44,166 | ) | (47,020 | ) | (19,472 | ) | (2,193,501 | ) | (2,304,159 | ) | ||||||||||
Net assets | 315,221 | 1,062,226 | 492,213 | 1,390,101 | 3,259,761 | |||||||||||||||
Book value ofnon-controlling interest | 154,458 | 520,491 | 166,959 | 551,423 | 1,393,331 | |||||||||||||||
Sales | 95,072 | 1,244,613 | 448,635 | 855,023 | 2,643,343 | |||||||||||||||
Profit for the period | 40,818 | 157,737 | 26,398 | (48,963 | ) | 175,990 | ||||||||||||||
Profit for the period attributable tonon-controlling interest | 20,001 | 77,291 | 8,954 | (24,264 | ) | 81,982 | ||||||||||||||
Cash flows from operating activities | 101,707 | 164,373 | 27,081 | 219,450 | 512,611 | |||||||||||||||
Cash flows from investing activities | 4,458 | (89,159 | ) | 47,219 | (356,434 | ) | (393,916 | ) | ||||||||||||
Cash flows from financing activities before dividends tonon-controlling interest | (68,678 | ) | (44,332 | ) | (34,632 | ) | 223,233 | 75,591 | ||||||||||||
Dividends tonon-controlling interest | (48,750 | ) | (39,466 | ) | (1,807 | ) | (9,233 | ) | (99,256 | ) | ||||||||||
Effect of exchange rate fluctuation | 2,111 | (593 | ) | (14 | ) | 2,501 | 4,005 | |||||||||||||
Net increase (decrease) of cash and cash equivalents | (9,152 | ) | (9,177 | ) | 37,847 | 79,517 | 99,035 |
In millions of won | ||||||||||||||||||||
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 Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(7) | Changes in goodwill |
(i) Details of goodwill as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Acquisition cost | 2,582 | |||||||
Accumulated impairment | — | — | ||||||
|
|
|
| |||||
Carrying book value | 2,582 | |||||||
|
|
|
|
(ii) Changes in goodwill for the years ended December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||||||
Beginning | Increase | Decrease | Ending | |||||||||||||
Acquisition cost | 95,395 | — | 97,977 | |||||||||||||
Accumulated impairment | — | — | — | — | ||||||||||||
Carrying book value | 2,582 | 95,395 | — | 97,977 |
In millions of won | 2018 | |||||||||||||||
Beginning | Increase | Decrease | Ending | |||||||||||||
Acquisition cost | — | — | 2,582 | |||||||||||||
Accumulated impairment | — | — | — | — | ||||||||||||
Carrying book value | 2,582 | — | — | 2,582 |
(8) | Disposals of subsidiaries |
The Group has completed liquidation process of KEPCO Singapore Holdings Pte., Ltd., and Korea Electric Power Nigeria Ltd., and is in the process of liquidating Garolim Tidal Power Plant Co., Ltd., as of December 31, 2019.
(i) The fair value of proceeds from disposal as of December 31, 2019 is as follows:
In millions of won | 2019 | |||
Consideration received in cash and cash equivalents | ||||
Net assets transferred due to liquidation | — | |||
|
| |||
Total | ||||
|
|
(ii) The carrying value of assets and liabilities of subsidiaries as at the date the Group lost its control during the year ended December 31, 2019 is as follows:
In millions of won | 2019 | |||
Assets | ||||
Cash and cash equivalents | ||||
Othernon-financial assets | 1 | |||
PP&E and intangible assets | 2 | |||
Liabilities | ||||
Trade and other payables | 3 | |||
Othernon-financial liabilities | 24 | |||
|
| |||
Net assets disposed | ||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
16. | Consolidated Subsidiaries, Continued |
(8) | Disposals of subsidiaries, continued |
(iii) Loss from disposals of subsidiaries for the year ended December 31, 2019 is as follows:
In millions of won | 2019 | |||
Fair value of proceeds from disposal | ||||
Net assets disposed | (73 | ) | ||
Realization of unrealized gain (loss) | (187 | ) | ||
|
| |||
Loss from disposals of subsidiaries (*1) | ||||
|
|
(*1) | Loss from disposals of subsidiaries is included in the ‘Loss on disposal of investments in subsidiaries’ in the consolidated statements of comprehensive income (loss). |
(iv) | Net cash flow from disposals of subsidiaries for the year ended December 31, 2019 is as follows: |
In millions of won | 2019 | |||
Consideration received in cash and cash equivalents | ||||
Less: cash and cash equivalents held by disposed subsidiaries | (97 | ) | ||
|
| |||
Net cash flow | ||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||||
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% | 1,693,967 | ||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | Electricity metering and others | KOREA | 29.00% | 4,727 | 25,393 | |||||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43% | 59,000 | 39,747 | |||||||||||||
Cheongna Energy Co., Ltd. | Generating and distributing vapor and hot/cold water | KOREA | 43.90% | 48,353 | 1,411 | |||||||||||||
Gangwon Wind Power Co., Ltd. (*2) | Power generation | KOREA | 15.00% | 5,725 | 12,327 | |||||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00% | 88,885 | 124,253 | |||||||||||||
Korea Power Exchange (*5) | Management of power market and others | KOREA | 100.00% | 127,839 | 258,899 | |||||||||||||
Hyundai Energy Co., Ltd. (*8) | Power generation | KOREA | 30.66% | 71,070 | — | |||||||||||||
Ecollite Co., Ltd. | Artificial light-weight aggregate | KOREA | 36.10% | 1,516 | — | |||||||||||||
Taebaek Wind Power Co., Ltd. | Power generation | KOREA | 25.00% | 3,810 | 7,039 | |||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | Power generation | KOREA | 25.00% | 3,420 | 2,553 | |||||||||||||
Pyeongchang Wind Power Co., Ltd. | Power generation | KOREA | 25.00% | 3,875 | 5,877 | |||||||||||||
Daeryun Power Co., Ltd. (*3) | Power generation | KOREA | 9.34% | 40,854 | 26,247 | |||||||||||||
Changjuk Wind Power Co., Ltd. | Power generation | KOREA | 30.00% | 3,801 | 8,520 | |||||||||||||
KNH Solar Co., Ltd. | Power generation | KOREA | 27.00% | 1,296 | 2,382 | |||||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00% | 20,635 | 63,583 | |||||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00% | 413,153 | 670,896 | |||||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50% | 40,365 | 123,425 | |||||||||||||
KNOC Nigerian East Oil Co., Ltd. (*4) | Resources development | NIGERIA | 14.63% | 12 | — | |||||||||||||
KNOC Nigerian West Oil Co., Ltd. (*4) | Resources development | NIGERIA | 14.63% | 12 | — | |||||||||||||
PT Wampu Electric Power | Power generation | INDONESIA | 46.00% | 21,292 | 29,355 | |||||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00% | 615,860 | 445,141 | |||||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00% | 132,300 | 115,784 | |||||||||||||
Pioneer Gas Power Limited (*7) | Power generation | INDIA | 38.50% | 49,831 | — | |||||||||||||
Eurasia Energy Holdings | Power generation and resources development | RUSSIA | 40.00% | 461 | — | |||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00% | 87,426 | 72,935 | |||||||||||||
Hadong Mineral Fiber Co., Ltd. (*3) | Recycling fly ashes | KOREA | 8.33% | 50 | — | |||||||||||||
Green Biomass Co., Ltd. (*10) | Power generation | KOREA | 7.85% | 714 | 108 | |||||||||||||
PT. Mutiara Jawa | Manufacturing and operating floating coal terminal | INDONESIA | 29.00% | 2,978 | 1,438 | |||||||||||||
Samcheok Eco Materials Co., Ltd. (*9) | Recycling fly ashes | KOREA | 2.35% | 686 | — | |||||||||||||
Noeul Green Energy Co., Ltd. | Power generation | KOREA | 29.00% | 1,740 | 6,610 | |||||||||||||
Naepo Green Energy Co., Ltd. | Power generation | KOREA | 41.67% | 29,200 | — | |||||||||||||
Goseong Green Energy Co., Ltd. (*2) | Power generation | KOREA | 1.12% | 2,900 | 2,340 | |||||||||||||
Gangneung Eco Power Co., Ltd. (*2) | Power generation | KOREA | 1.61% | 2,900 | 2,430 | |||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00% | 72,000 | 66,956 | |||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | Power generation | KOREA | 28.00% | 194 | 215 | |||||||||||||
Dongducheon Dream Power Co., Ltd. (*14) | Power generation | KOREA | 33.61% | 148,105 | 76,547 | |||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. (*2) | Power generation | INDIA | 5.16% | 9,000 | — | |||||||||||||
Daejung Offshore Wind Power Co., Ltd. (*16) | Power generation | KOREA | 49.90% | 5,190 | 2,361 | |||||||||||||
GS Donghae Electric Power Co., Ltd. (*16) | Power generation | KOREA | 34.00% | 204,000 | 255,983 | |||||||||||||
Daegu Photovoltaic Co., Ltd. | Power generation | KOREA | 29.00% | 1,230 | 2,060 | |||||||||||||
Busan Green Energy Co., Ltd. | Power generation | KOREA | 29.00% | 5,243 | 10,637 | |||||||||||||
Gunsan Bio Energy Co., Ltd. (*2) | Power generation | KOREA | 18.87% | 1,000 | — | |||||||||||||
Korea Electric Vehicle Charging Service | Electric vehicle charge service | KOREA | 28.00% | 2,800 | 1,063 | |||||||||||||
Korea Nuclear Partners Co., Ltd. | Electric material agency | KOREA | 29.00% | 290 | — | �� | ||||||||||||
Korea Electric Power Corporation Fund (*11) | Developing electric enterprises | KOREA | 98.09% | 51,500 | 41,126 | |||||||||||||
Energy Infra Asset Management Co., Ltd. (*3) | Asset management | KOREA | 9.90% | 297 | 791 | |||||||||||||
Daegu clean Energy Co., Ltd. | Renewable power generation | KOREA | 28.00% | 140 | 13 | |||||||||||||
YaksuESS Co., Ltd. | Installing ESS related equipment | KOREA | 29.00% | 210 | 516 | |||||||||||||
Nepal Water & Energy Development Company Private Limited (*13) | Construction and operation of utility plant | NEPAL | 57.76% | 35,571 | 31,145 | |||||||||||||
Gwangyang Green Energy Co., Ltd. | Power generation | KOREA | 20.00% | 2,000 | 948 | |||||||||||||
PND solar., Ltd. | Power generation | KOREA | 29.00% | 1,250 | 1,144 | |||||||||||||
Hyundai Eco Energy Co., Ltd. (*2) | Power generation | KOREA | 19.00% | 3,610 | 3,781 | |||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd (*2) | Power generation | KOREA | 9.63% | 533 | 386 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||
2019 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Associates> | ||||||||||||||||||
Green Energy Electricity Generation Co., Ltd. | Power generation | KOREA | 29.00% | 163 | ||||||||||||||
Korea Energy Solutions Co., Ltd. | R & D | KOREA | 20.00% | 300 | 259 | |||||||||||||
ITR Co., Ltd. | R & D | KOREA | 20.00% | 50 | 33 | |||||||||||||
Structure test network Co., Ltd. | Technical testing and consulting | KOREA | 20.00% | 25 | 21 | |||||||||||||
Namjeongsusang Solar Power Operation Co., Ltd.(*18) | Power generation | KOREA | 15.00% | 969 | 812 | |||||||||||||
Indeck Niles Development, LLC (*23) | Power generation | USA | 50.00% | — | — | |||||||||||||
Indeck Niles Asset Management, LLC | Power generation | USA | 33.33% | — | 87 | |||||||||||||
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1 | Holding company | KOREA | 49.00% | 7,105 | 7,126 | |||||||||||||
Suwon New Power Co., Ltd. | Power generation | KOREA | 39.90% | 798 | 798 | |||||||||||||
KPGE Inc. | Power generation materials business | KOREA | 29.00% | 287 | 287 | |||||||||||||
Gwangbaek Solar Power Investment Co., Ltd. (*21) | Power generation | KOREA | 19.00% | 2,054 | 2,054 | |||||||||||||
Goduk Clean Energy Co., Ltd. (*20) | Fuel cell generation | KOREA | 61.00% | 1,830 | 1,830 | |||||||||||||
|
|
|
| |||||||||||||||
2,539,956 | 4,251,802 | |||||||||||||||||
|
|
|
| |||||||||||||||
<Joint ventures> | ||||||||||||||||||
KEPCO-Uhde Inc. (*6) | Power generation | KOREA | 52.80% | 11,355 | 134 | |||||||||||||
Shuweihat Asia Power Investment B.V. | Holding company | NETHERLANDS | 49.00% | 44,405 | 18,318 | |||||||||||||
Shuweihat Asia Operation & Maintenance Company (*6) | Maintenance of utility plant | CAYMAN | 55.00% | 30 | 1,408 | |||||||||||||
Waterbury Lake Uranium L.P. | Resources development | CANADA | 33.48% | 26,602 | 20,562 | |||||||||||||
ASM-BG Investicii AD | Power generation | BULGARIA | 50.00% | 16,101 | 19,376 | |||||||||||||
RES Technology AD | Power generation | BULGARIA | 50.00% | 15,595 | 16,248 | |||||||||||||
KV Holdings, Inc. | Power generation | PHILIPPINES | 40.00% | 2,103 | 2,441 | |||||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20% | 94,579 | 214,794 | |||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | Power generation | CHINA | 40.00% | 16,621 | 8,149 | |||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00% | 121,928 | 185,307 | |||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00% | 10,858 | 41,024 | |||||||||||||
Rabigh Electricity Company | Power generation | SAUDI ARABIA | 40.00% | 109,743 | 109,096 | |||||||||||||
Rabigh Operation & Maintenance Company Limited | Maintenance of utility plant | SAUDI ARABIA | 40.00% | 70 | 6,879 | |||||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00% | 301,910 | 253,607 | |||||||||||||
KW Nuclear Components Co., Ltd. | Manufacturing | KOREA | 45.00% | 833 | 9,052 | |||||||||||||
Busan Shinho Solar Power Co., Ltd. | Power generation | KOREA | 25.00% | 2,100 | 5,045 | |||||||||||||
Global Trade Of Power System Co., Ltd. | Exporting products and technology of small or medium business by proxy | KOREA | 29.00% | 290 | 571 | |||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | Power generation | KOREA | 29.00% | 1,856 | 2,883 | |||||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00% | 111,476 | 192,164 | |||||||||||||
KAPES, Inc. (*6) | R&D | KOREA | 51.00% | 5,629 | 10,832 | |||||||||||||
Honam Wind Power Co., Ltd. | Power generation | KOREA | 29.00% | 3,480 | 4,375 | |||||||||||||
Jeongam Wind Power Co., Ltd. (*16) | Power generation | KOREA | 40.00% | 5,580 | 4,437 | |||||||||||||
Korea Power Engineering Service Co., Ltd. (*16) | Construction and service | KOREA | 29.00% | 290 | 4,902 | |||||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90% | 52,700 | 34,872 | |||||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. (*3) | Power generation | KOREA | 15.00% | 3,000 | 3,040 | |||||||||||||
Nghi Son 2 Power LLC | Power generation | VIETNAM | 50.00% | 2,781 | — | |||||||||||||
Kelar S.A (*6) | Power generation | CHILE | 65.00% | 78,060 | 70,462 | |||||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00% | 26,892 | 34,327 | |||||||||||||
Incheon New Power Co., Ltd. | Power generation | KOREA | 29.00% | 461 | — | |||||||||||||
Seokmun Energy Co., Ltd. | Power generation | KOREA | 29.00% | 15,370 | 17,342 | |||||||||||||
Daehan Wind Power PSC | Power generation | JORDAN | 50.00% | 3,191 | 1,757 | |||||||||||||
Barakah One Company (*12) | Power generation | UAE | 18.00% | 118 | — | |||||||||||||
Nawah Energy Company (*12) | Operation of utility plant | UAE | 18.00% | 296 | 285 | |||||||||||||
MOMENTUM | International thermonuclear experimental reactor construction management | FRANCE | 33.33% | 1 | 553 | |||||||||||||
Daegu Green Power Co., Ltd. | Power generation | KOREA | 29.00% | 46,225 | 22,824 | |||||||||||||
Yeonggwang Wind Power Co., Ltd. | Power generation | KOREA | 46.00% | 17,475 | 17,627 | |||||||||||||
Chester Solar IV SpA | Power generation | CHILE | 45.00% | 1,700 | 672 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||
2019 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Joint ventures> | ||||||||||||||||||
Chester Solar V SpA | Power generation | CHILE | 45.00% | 146 | ||||||||||||||
Diego de Almagro Solar SpA | Power generation | CHILE | 45.00% | 2,091 | 1,035 | |||||||||||||
South Jamaica Power Company Limited | Power generation | JAMAICA | 20.00% | 20,521 | 13,863 | |||||||||||||
Daesan Green Energy Co., Ltd. | Power generation | KOREA | 35.00% | 17,850 | 17,182 | |||||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00% | 42,948 | 42,070 | |||||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00% | 27,891 | 31,156 | |||||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00% | 28,021 | 42,916 | |||||||||||||
RE Astoria 2 LandCo LLC | Power generation | USA | 50.00% | 5,188 | 5,602 | |||||||||||||
RE Barren Ridge LandCo LLC | Power generation | USA | 50.00% | 2,187 | 1,966 | |||||||||||||
Laurel SpA | Power generation | CHILE | 45.00% | 1,222 | 595 | |||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd (*3) | Power generation | AUSTRALIA | 12.37% | 4,095 | 4,024 | |||||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00% | 37,689 | 34,859 | |||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | Power generation | KOREA | 37.78% | 8,500 | 7,846 | |||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | Power generation | KOREA | 29.01% | 3,200 | 3,043 | |||||||||||||
Chester Solar I SpA | Power generation | CHILE | 45.00% | 1,181 | 1,157 | |||||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00% | 47,903 | 48,930 | |||||||||||||
Saemangeum Solar Power Co., Ltd.(*22) | Power generation | KOREA | 81.00% | 10,000 | 8,324 | |||||||||||||
Chungsongmeon BongSan wind power Co., Ltd. | Power generation | KOREA | 29.00% | 2,900 | 2,764 | |||||||||||||
Jaeun Resident Wind Power Plant Co., Ltd. | Power generation | KOREA | 29.00% | 2,494 | 2,198 | |||||||||||||
DE Energia SpA | Power generation | CHILE | 49.00% | 8,364 | 8,665 | |||||||||||||
Dangjin Eco Power Co., Ltd. (newly) (*15) | Power generation | KOREA | 34.00% | 25,661 | 25,661 | |||||||||||||
Haemodum Solar Co., Ltd. | Power generation | KOREA | 49.00% | 2,940 | 2,940 | |||||||||||||
Yangyang Wind Power Co., Ltd. (*17) | Power generation | KOREA | 99.54% | 10,800 | 10,800 | |||||||||||||
HORUS SOLAR, S.A. DE C.V. (*19) | Renewable power generation | MEXICO | 14.95% | 3,403 | 3,403 | |||||||||||||
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. (*19) | Renewable power generation | MEXICO | 14.95% | 672 | 672 | |||||||||||||
SUNMEX RENOVABLES, S.A. DE C.V. (*19) | Renewable power generation | MEXICO | 14.95% | 222 | 222 | |||||||||||||
Stavro Holding II AB | Holding company | SWEDEN | 20.00% | 5,524 | 5,625 | |||||||||||||
|
|
|
| |||||||||||||||
1,475,696 | 1,663,029 | |||||||||||||||||
|
|
|
| |||||||||||||||
5,914,831 | ||||||||||||||||||
|
|
|
|
(*1) | The effective percentage of ownership is 21.57% considering treasury stocks. |
(*2) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of the Group’s financial and operating policy of the board of directors. |
(*3) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity. |
(*4) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint one out of four members of the steering committee of the entity. Moreover, the Group has significant financial transactions, which can affect its influence on the entity. |
(*5) | The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity. |
(*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. |
(*7) | As of reporting date, the annual reporting period of all associates and joint ventures ends on December 31, except for Pioneer Gas Power Limited whose reporting period ends on March 31. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
(*8) | As of December 31, 2019, 15.64% of ownership of Hyundai Energy Co., Ltd. is held by NH Power ll Co., Ltd. and NH Bank. According to the shareholders’ agreement reached on March 2011, not only does the Group have a call option to acquire the investment in Hyundai Energy Co., Ltd. from NH Power ll Co., Ltd. and NH Bank with a certain rate of return, NH Power ll Co., Ltd. and NH Bank also have put options to dispose of their investment to the Group. In connection with this agreement, the Group applied the equity method on the investment in Hyundai Energy Co., Ltd. with 46.30% of ownership. |
(*9) | The Group’s effective percentage of ownership excluding the redeemable convertible preferred stock is 25.54%. |
(*10) | The effective percentage of ownership is less than 20% but the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity and the fact that the dominant portion of the investee’s sales transactions is generated from the Group. |
(*11) | 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. |
(*12) | The effective percentage of ownership is less than 20% but the Group has joint control over the entity as decisions on the major activities require the unanimous consent of the parties that collectively control the entity. |
(*13) | 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. |
(*14) | The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock. |
(*15) | Eumseong Natural Gas Power Co., Ltd. and Dangjin Eco Solar Power Co., Ltd. were established byspin-off from Dangjin Eco Power Co., Ltd. After thespin-off, Eumseong Natural Gas Power Co., Ltd. was merged and absorbed by the Group during December 2019. |
(*16) | Daejung Offshore Wind Power Co., Ltd. and GS Donghae Electric Power Co., Ltd. are reclassfied from joint ventures to associates, and Jeongam Wind Power Co., Ltd. and Korea Power Engineering Service Co., Ltd. are reclassified from associates to joint ventures during the year ended December 31, 2019. |
(*17) | The temporary percentage of ownership is more than 50% due to differences in the timing of the payment. The Group is expected to exert significant influence after payment is completed in the first quarter of 2020. |
(*18) | The effective percentage of ownership is less than 20%. However, the Group considers the major decision-making body to be the general decision of the board of directors, and the general decision of the board of directors can be passed only by two directors. For this reason, the entities are classified as an associate. |
(*19) | The effective percentage of ownership is less than 20%. However, according to the shareholders’ agreement, decisions on the major activities must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures. |
(*20) | The effective percentage of ownership is 61%. However, it seems the Group doesn’t have power on the Goduk Clean Energy Co., Ltd. due to its proportion to make decisions, which is less than 50%. The Group can exercise sginificant influence on the entity by participating in the board of directors and others.Therefore the entity is classified as an associate. |
(*21) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity. |
(*22) | The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all operation related decisions must be agreed by all ownership parties. For this reason, the entity is classified as a joint venture. |
(*23) | Although the investment amount is not paid as of December 31, 2019, the Group has an investment agreement on 50% of the interests. the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
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 | |||||||||||
Korea Electric Power Industrial Development Co., Ltd. | Electricity metering and others | KOREA | 29.00 | % | 4,727 | 21,838 | ||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43 | % | 59,000 | 40,338 | ||||||||||
Cheongna Energy Co., Ltd. | Generating and distributing vapor and hot/cold water | KOREA | 43.90 | % | 48,353 | 3,465 | ||||||||||
Gangwon Wind Power Co., Ltd. (*2) | Power generation | KOREA | 15.00 | % | 5,725 | 13,220 | ||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 88,885 | 127,160 | ||||||||||
Korea Power Exchange (*5) | Management of power market and others | KOREA | 100.00 | % | 127,839 | 251,802 | ||||||||||
AMEC Partners Korea Ltd. (*3) | Resources development | KOREA | 19.00 | % | 707 | 209 | ||||||||||
Hyundai Energy Co., Ltd. (*8) | Power generation | KOREA | 30.66 | % | 71,070 | — | ||||||||||
Ecollite Co., Ltd. | Artificial light-weight aggregate | KOREA | 36.10 | % | 1,516 | — | ||||||||||
Taebaek Wind Power Co., Ltd. | Power generation | KOREA | 25.00 | % | 3,810 | 5,665 | ||||||||||
Taeback Guinemi Wind Power Co., Ltd. | Power generation | KOREA | 25.00 | % | 3,420 | 2,569 | ||||||||||
Pyeongchang Wind Power Co., Ltd. | Power generation | KOREA | 25.00 | % | 3,875 | 5,419 | ||||||||||
Daeryun Power Co., Ltd. (*3) | Power generation | KOREA | 9.34 | % | 40,854 | 26,099 | ||||||||||
Changjuk Wind Power Co., Ltd. | Power generation | KOREA | 30.00 | % | 3,801 | 8,086 | ||||||||||
KNH Solar Co., Ltd. | Power generation | KOREA | 27.00 | % | 1,296 | 2,337 | ||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00 | % | 20,635 | 57,558 | ||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00 | % | 413,153 | 647,010 | ||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50 | % | 40,365 | 108,628 | ||||||||||
KNOC Nigerian East Oil Co., Ltd. (*4) | Resources development | NIGERIA | 14.63 | % | 12 | — | ||||||||||
KNOC Nigerian West Oil Co., Ltd. (*4) | Resources development | NIGERIA | 14.63 | % | 12 | — | ||||||||||
PT Wampu Electric Power | Power generation | INDONESIA | 46.00 | % | 21,292 | 31,097 | ||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00 | % | 615,860 | 511,646 | ||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00 | % | 132,300 | 114,566 | ||||||||||
Pioneer Gas Power Limited (*7) | Power generation | INDIA | 38.50 | % | 49,831 | 20,395 | ||||||||||
Eurasia Energy Holdings | Power generation and resources development | RUSSIA | 40.00 | % | 461 | — | ||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00 | % | 84,374 | 77,165 | ||||||||||
Hadong Mineral Fiber Co., Ltd. (*3) | Recycling fly ashes | KOREA | 8.33 | % | 50 | — | ||||||||||
Green Biomass Co., Ltd. (*10) | Power generation | KOREA | 8.80 | % | 714 | 115 | ||||||||||
PT. Mutiara Jawa | Manufacturing and operating floating coal terminal | INDONESIA | 29.00 | % | 2,978 | 365 | ||||||||||
Samcheok Eco Materials Co., Ltd. (*9) | Recycling fly ashes | KOREA | 2.35 | % | 686 | — | ||||||||||
Noeul Green Energy Co., Ltd. | Power generation | KOREA | 29.00 | % | 1,740 | 8,015 | ||||||||||
Naepo Green Energy Co., Ltd. | Power generation | KOREA | 41.67 | % | 29,200 | — | ||||||||||
Goseong Green Energy Co., Ltd. (*2) | Power generation | KOREA | 1.12 | % | 2,900 | 2,459 | ||||||||||
Gangneung Eco Power Co., Ltd. (*2) | Power generation | KOREA | 1.61 | % | 2,900 | 2,495 | ||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 72,000 | 67,600 | ||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | Power generation | KOREA | 28.00 | % | 194 | 202 | ||||||||||
Dongducheon Dream Power Co., Ltd. (*14) | Power generation | KOREA | 33.61 | % | 148,105 | 76,386 | ||||||||||
Jinbhuvish Power Generation Pvt. Ltd. (*2) | Power generation | INDIA | 5.16 | % | 9,000 | — | ||||||||||
SE Green Energy Co., Ltd. | Power generation | KOREA | 47.76 | % | 3,821 | 3,366 | ||||||||||
Daegu Photovoltaic Co., Ltd. | Power generation | KOREA | 29.00 | % | 1,230 | 2,002 | ||||||||||
Jeongam Wind Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 5,580 | 4,589 | ||||||||||
Korea Power Engineering Service Co., Ltd. | Construction and service | KOREA | 29.00 | % | 290 | 4,333 | ||||||||||
Busan Green Energy Co., Ltd. | Power generation | KOREA | 29.00 | % | 5,243 | 12,537 | ||||||||||
Gunsan Bio Energy Co., Ltd. (*2) | Power generation | KOREA | 18.87 | % | 1,000 | — | ||||||||||
Korea Electric Vehicle Charging Service | Electric vehicle charge service | KOREA | 28.00 | % | 2,800 | 1,593 | ||||||||||
Ulleungdo Natural Energy Co., Ltd. | Renewable power generation | KOREA | 29.85 | % | 8,000 | 4,628 | ||||||||||
Korea Nuclear Partners Co., Ltd. | Electric material agency | KOREA | 29.00 | % | 290 | 175 | ||||||||||
Tamra Offshore Wind Power Co., Ltd. | Power generation | KOREA | 27.00 | % | 8,910 | 10,401 | ||||||||||
Korea Electric Power Corporation Fund (*11) | Developing electric enterprises | KOREA | 98.09 | % | 51,500 | 47,189 | ||||||||||
Energy Infra Asset Management Co., Ltd. (*3) | Asset management | KOREA | 9.90 | % | 297 | 665 | ||||||||||
Daegu clean Energy Co., Ltd. | Renewable power generation | KOREA | 28.00 | % | 140 | 17 | ||||||||||
YaksuESS Co., Ltd | Installing ESS related equipment | KOREA | 29.00 | % | 210 | 460 | ||||||||||
Nepal Water & Energy Development Company Private Limited (*13) | Construction and operation of utility plant | NEPAL | 57.67 | % | 33,577 | 30,961 |
87
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||
Gwangyang Green Energy Co., Ltd. | Power generation | KOREA | 20.00 | % | 1,206 | |||||||||||
PND solar., Ltd | Power generation | KOREA | 29.00 | % | 1,250 | 1,020 | ||||||||||
Hyundai Eco Energy Co., Ltd. (*2) | Power generation | KOREA | 19.00 | % | 3,610 | 3,388 | ||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd (*2) | Power generation | KOREA | 9.63 | % | 533 | 533 | ||||||||||
|
|
|
| |||||||||||||
2,338,421 | 4,064,820 | |||||||||||||||
|
|
|
| |||||||||||||
<Joint ventures> | ||||||||||||||||
KEPCO-Uhde Inc. (*6) | Power generation | KOREA | 52.80 | % | 11,355 | 188 | ||||||||||
Eco Biomass Energy Sdn. Bhd. (*6) | Power generation | MALAYSIA | 61.53 | % | 14,439 | — | ||||||||||
Shuweihat Asia Power Investment B.V. | Holding company | NETHERLANDS | 49.00 | % | 44,405 | 27,251 | ||||||||||
Shuweihat Asia Operation & Maintenance Company (*6) | Maintenance of utility plant | CAYMAN | 55.00 | % | 30 | 792 | ||||||||||
Waterbury Lake Uranium L.P. | Resources development | CANADA | 34.07 | % | 26,602 | 19,032 | ||||||||||
ASM-BG Investicii AD | Power generation | BULGARIA | 50.00 | % | 16,101 | 21,379 | ||||||||||
RES Technology AD | Power generation | BULGARIA | 50.00 | % | 15,595 | 15,209 | ||||||||||
KV Holdings, Inc. | Power generation | PHILIPPINES | 40.00 | % | 2,103 | 1,918 | ||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20 | % | 94,579 | 208,306 | ||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 16,621 | 9,981 | ||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 121,928 | 166,162 | ||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 10,858 | 39,442 | ||||||||||
Rabigh Electricity Company | Power generation | SAUDI ARABIA | 40.00 | % | 109,743 | 105,328 | ||||||||||
Rabigh Operation & Maintenance Company Limited | Maintenance of utility plant | SAUDI ARABIA | 40.00 | % | 70 | 5,834 | ||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00 | % | 301,910 | 239,632 | ||||||||||
KW Nuclear Components Co., Ltd. | Manufacturing | KOREA | 45.00 | % | 833 | 7,708 | ||||||||||
Busan Shinho Solar Power Co., Ltd. | Power generation | KOREA | 25.00 | % | 2,100 | 4,761 | ||||||||||
GS Donghae Electric Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 204,000 | 240,591 | ||||||||||
Global Trade Of Power System Co., Ltd. | Exporting products and technology of small or medium business by proxy | KOREA | 29.00 | % | 290 | 515 | ||||||||||
Expressway Solar-light Power Generation Co., Ltd. | Power generation | KOREA | 29.00 | % | 1,856 | 2,676 | ||||||||||
Daejung Offshore Wind Power Co., Ltd. | Power generation | KOREA | 49.90 | % | 5,190 | 2,669 | ||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00 | % | 111,476 | 177,357 | ||||||||||
KAPES, Inc. (*6) | R&D | KOREA | 51.00 | % | 5,629 | 9,079 | ||||||||||
Dangjin Eco Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 61,540 | 19,912 | ||||||||||
Honam Wind Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 3,480 | 4,860 | ||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90 | % | 52,700 | 42,505 | ||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. (*3) | Power generation | KOREA | 15.00 | % | 3,000 | 2,843 | ||||||||||
Nghi Son 2 Power LLC | Power generation | VIETNAM | 50.00 | % | 2,781 | — | ||||||||||
Kelar S.A (*6) | Power generation | CHILE | 65.00 | % | 78,060 | 72,824 | ||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00 | % | 746 | 7,081 | ||||||||||
Incheon New Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 461 | 579 | ||||||||||
Seokmun Energy Co., Ltd. | Power generation | KOREA | 29.00 | % | 15,370 | 16,751 | ||||||||||
Daehan Wind Power PSC | Power generation | JORDAN | 50.00 | % | 3,191 | 1,632 | ||||||||||
Barakah One Company (*12) | Power generation | UAE | 18.00 | % | 118 | 3,807 | ||||||||||
Nawah Energy Company (*12) | Operation of utility plant | UAE | 18.00 | % | 296 | 274 | ||||||||||
MOMENTUM | International thermonuclear experimental reactor construction management | FRANCE | 33.33 | % | 1 | 582 | ||||||||||
Daegu Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 46,225 | 41,110 | ||||||||||
Yeonggwang Wind Power Co., Ltd. | Power generation | KOREA | 41.00 | % | 15,375 | 15,304 | ||||||||||
Chester Solar IV SpA (*6) | Power generation | CHILE | 81.82 | % | 1,700 | 1,851 | ||||||||||
Chester Solar V SpA (*6) | Power generation | CHILE | 81.82 | % | 525 | 474 | ||||||||||
Diego de Almagro Solar SpA (*6) | Power generation | CHILE | 81.82 | % | 2,091 | 1,663 | ||||||||||
South Jamaica Power Company Limited | Power generation | JAMAICA | 20.00 | % | 16,231 | 16,124 | ||||||||||
Daesan Green Energy Co., Ltd. | Power generation | KOREA | 35.00 | % | 17,850 | 17,433 | ||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00 | % | 42,948 | 51,094 | ||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00 | % | 27,891 | 38,898 | ||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00 | % | 28,021 | 41,415 | ||||||||||
RE Astoria 2 LandCo LLC | Power generation | USA | 50.00 | % | 5,188 | 5,410 |
88
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||
RE Barren Ridge LandCo LLC | Power generation | USA | 50.00 | % | 1,898 | |||||||||||
Laurel SpA (*6) | Power generation | CHILE | 81.82 | % | 1,222 | 921 | ||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty | Power generation | AUSTRALIA | 12.37 | % | 4,095 | 3,940 | ||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00 | % | 36,654 | 36,865 | ||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | Power generation | KOREA | 46.58 | % | 8,500 | 8,508 | ||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | Power generation | KOREA | 24.76 | % | 2,073 | 2,073 | ||||||||||
Chester Solar I SpA (*6) | Power generation | CHILE | 81.82 | % | 1,181 | 1,181 | ||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00 | % | 47,903 | 47,903 | ||||||||||
|
|
|
| |||||||||||||
1,647,317 | 1,813,525 | |||||||||||||||
|
|
|
| |||||||||||||
5,878,345 | ||||||||||||||||
|
|
|
|
(*1) | The effective percentage of ownership is 21.57% considering treasury stocks. |
(*2) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of the Group’s financial and operating policy of the board of directors. |
(*3) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity. |
(*4) | The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint one out of four members of the steering committee of the entity. Moreover, the Group has significant financial transactions, which can affect its influence on the entity. |
(*5) | 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. |
(*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. |
(*7) | As of reporting date, the annual reporting period of all associates and joint ventures ends on December 31, except for Pioneer Gas Power Limited whose reporting period ends on March 31. |
(*8) | As of December 31, 2018, 15.64% of ownership of Hyundai Energy Co., Ltd. is held by NH Power ll Co., Ltd. and NH Bank. According to the shareholders’ agreement reached on March 2011, not only does the Group have a call option to acquire the investment in Hyundai Energy Co., Ltd. from NH Power ll Co., Ltd. and NH Bank with a certain rate of return, NH Power ll Co., Ltd. and NH Bank also have put options to dispose of their investment to the Group. In connection with this agreement, the Group applied the equity method on the investment in Hyundai Energy Co., Ltd. with 46.30% of ownership. |
(*9) | The Group’s effective percentage of ownership excluding the redeemable convertible preferred stock is 25.54%. |
(*10) | The effective percentage of ownership is less than 20% but the Group can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity and the fact that the dominant portion of the investee’s sales transactions is generated from the Group. |
(*11) | 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. |
(*12) | The effective percentage of ownership is less than 20% but the Group has joint control over the entity as decisions on the major activities require the unanimous consent of the parties that collectively control the entity. |
(*13) | 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. |
(*14) | The effective percentage of ownership is 34.01% considering redeemable convertible preferred stock. |
89
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(2) | The fair value of associates which are actively traded on an open market and have a readily available market value as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||
Investees | 2019 | 2018 | ||||||
<Associates> | ||||||||
Korea Electric Power Industrial Development Co., Ltd. | 33,609 | |||||||
Korea Gas Corporation | 715,365 | 910,980 | ||||||
YTN Co., Ltd. | 18,450 | 18,900 | ||||||
SPC Power Corporation | 117,230 | 72,710 | ||||||
PT. Bayan Resources TBK | 880,860 | 1,017,601 |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehen- sive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||||||
Korea Gas Corporation | — | — | (25,704 | ) | 8,511 | 12,687 | (3,375 | ) | 1,693,967 | |||||||||||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 21,838 | — | — | (1,598 | ) | 5,002 | — | 151 | 25,393 | |||||||||||||||||||||||
YTN Co., Ltd. | 40,338 | — | — | (180 | ) | (449 | ) | 5 | 33 | 39,747 | ||||||||||||||||||||||
Cheongna Energy Co., Ltd. | 3,465 | — | — | — | (2,054 | ) | — | — | 1,411 | |||||||||||||||||||||||
Gangwon Wind Power Co., Ltd. | 13,220 | — | — | (2,272 | ) | 1,379 | — | — | 12,327 | |||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 127,160 | — | — | (8,889 | ) | 5,982 | — | — | 124,253 | |||||||||||||||||||||||
Korea Power Exchange | 251,802 | — | — | — | 10,907 | — | (3,810 | ) | 258,899 | |||||||||||||||||||||||
AMEC Partners Korea Ltd. | 209 | — | — | — | — | 3 | (212 | ) | — | |||||||||||||||||||||||
Hyundai Energy Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Ecollite Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Taebaek Wind Power Co., Ltd. | 5,665 | — | — | — | 1,374 | — | — | 7,039 | ||||||||||||||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 2,569 | — | — | — | (16 | ) | — | — | 2,553 | |||||||||||||||||||||||
Pyeongchang Wind Power Co., Ltd. | 5,419 | — | — | — | 458 | — | — | 5,877 | ||||||||||||||||||||||||
Daeryun Power Co., Ltd. | 26,099 | — | — | — | 173 | — | (25 | ) | 26,247 | |||||||||||||||||||||||
Changjuk Wind Power Co., Ltd. | 8,086 | — | — | — | 434 | — | — | 8,520 | ||||||||||||||||||||||||
KNH Solar Co., Ltd. | 2,337 | — | — | — | 45 | — | — | 2,382 | ||||||||||||||||||||||||
SPC Power Corporation | 57,558 | — | — | (14,229 | ) | 5,929 | 14,286 | 39 | 63,583 | |||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 647,010 | — | — | (11,468 | ) | 26,300 | 9,209 | (155 | ) | 670,896 | ||||||||||||||||||||||
PT. Cirebon Electric Power | 108,628 | — | — | — | 11,079 | (65 | ) | 3,783 | 123,425 | |||||||||||||||||||||||
KNOC Nigerian East Oil Co., Ltd. | — | — | — | — | (27 | ) | (380 | ) | 407 | — | ||||||||||||||||||||||
KNOC Nigerian West Oil Co., Ltd. | — | — | — | — | (29 | ) | (349 | ) | 378 | — | ||||||||||||||||||||||
PT Wampu Electric Power | 31,097 | — | — | — | (2,867 | ) | 2 | 1,123 | 29,355 | |||||||||||||||||||||||
PT. Bayan Resources TBK | 511,646 | — | — | (71,100 | ) | 6,181 | (1,586 | ) | — | 445,141 | ||||||||||||||||||||||
S-Power Co., Ltd. | 114,566 | — | — | — | 1,218 | — | — | 115,784 | ||||||||||||||||||||||||
Pioneer Gas Power Limited | 20,395 | — | — | — | (20,784 | ) | 389 | — | — | |||||||||||||||||||||||
Eurasia Energy Holdings | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Xe-PianXe-Namnoy Power Co., Ltd. | 77,165 | 3,052 | — | — | (10,210 | ) | 2,928 | — | 72,935 | |||||||||||||||||||||||
Hadong Mineral Fiber Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Green Biomass Co., Ltd. | 115 | — | — | — | (73 | ) | — | 66 | 108 | |||||||||||||||||||||||
PT. Mutiara Jawa | 365 | — | — | — | 1,031 | 42 | — | 1,438 | ||||||||||||||||||||||||
Samcheok Eco Materials Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Noeul Green Energy Co., Ltd. | 8,015 | — | — | — | (1,395 | ) | — | (10 | ) | 6,610 | ||||||||||||||||||||||
Naepo Green Energy Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Goseong Green Energy Co., Ltd. | 2,459 | — | — | — | (119 | ) | — | — | 2,340 | |||||||||||||||||||||||
Gangneung Eco Power Co., Ltd. | 2,495 | — | — | — | (65 | ) | — | — | 2,430 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 67,600 | — | — | — | (827 | ) | 198 | (15 | ) | 66,956 | ||||||||||||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 202 | — | — | — | 13 | — | — | 215 |
90
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | — | — | — | 441 | — | (280 | ) | 76,547 | ||||||||||||||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Daejung Offshore Wind Power Co., Ltd. | — | — | — | — | — | — | 2,361 | 2,361 | ||||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | — | — | — | — | — | — | 255,983 | 255,983 | ||||||||||||||||||||||||
SE Green Energy Co., Ltd. | 3,366 | — | — | — | — | (75 | ) | (3,291 | ) | — | ||||||||||||||||||||||
Daegu Photovoltaic Co., Ltd. | 2,002 | — | — | (327 | ) | 385 | — | — | 2,060 | |||||||||||||||||||||||
Jeongam Wind Power Co., Ltd. | 4,589 | — | — | — | (152 | ) | — | (4,437 | ) | — | ||||||||||||||||||||||
Korea Power Engineering Service Co., Ltd. | 4,333 | — | — | — | 508 | — | (4,841 | ) | — | |||||||||||||||||||||||
Busan Green Energy Co., Ltd. | 12,537 | — | — | — | (1,884 | ) | — | (16 | ) | 10,637 | ||||||||||||||||||||||
Gunsan Bio Energy Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Korea Electric Vehicle Charging Service | 1,593 | — | — | — | (515 | ) | — | (15 | ) | 1,063 | ||||||||||||||||||||||
Ulleungdo Natural Energy Co., Ltd. | 4,628 | — | — | — | (1 | ) | — | (4,627 | ) | — | ||||||||||||||||||||||
Korea Nuclear Partners Co., Ltd. (*1) | 175 | — | — | — | (79 | ) | — | (96 | ) | — | ||||||||||||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 10,401 | — | — | — | — | — | (10,401 | ) | — | |||||||||||||||||||||||
Korea Electric Power Corporation Fund | 47,189 | — | — | — | (6,931 | ) | 868 | — | 41,126 | |||||||||||||||||||||||
Energy Infra Asset Management Co., Ltd. | 665 | — | — | — | 126 | — | — | 791 | ||||||||||||||||||||||||
Daegu clean Energy Co., Ltd. | 17 | — | — | — | (4 | ) | — | — | 13 | |||||||||||||||||||||||
YaksuESS Co., Ltd | 460 | — | — | — | 56 | — | — | 516 | ||||||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 30,961 | — | — | — | (854 | ) | 1,038 | — | 31,145 | |||||||||||||||||||||||
Gwangyang Green Energy Co., Ltd. | 1,206 | — | — | — | (258 | ) | — | — | 948 | |||||||||||||||||||||||
PND solar., Ltd | 1,020 | — | — | — | 124 | — | — | 1,144 | ||||||||||||||||||||||||
Hyundai Eco Energy Co., Ltd. | 3,388 | — | — | — | 393 | — | — | 3,781 | ||||||||||||||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | 533 | — | — | — | (147 | ) | — | — | 386 | |||||||||||||||||||||||
Green Energy Electricity Generation Co., Ltd. | — | 1,189 | — | — | (1,026 | ) | — | — | 163 | |||||||||||||||||||||||
Korea Energy Solutions Co., Ltd. | — | 300 | — | — | (41 | ) | — | — | 259 | |||||||||||||||||||||||
ITR Co., Ltd. | — | 50 | — | — | (17 | ) | — | — | 33 | |||||||||||||||||||||||
Structure test network Co., Ltd. | — | 25 | — | — | (4 | ) | — | — | 21 | |||||||||||||||||||||||
Namjeongsusang Solar Power Operation Co., Ltd. | — | 969 | — | — | (157 | ) | — | — | 812 | |||||||||||||||||||||||
Indeck Niles Development, LLC | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Indeck Niles Asset Management, LLC | — | — | — | (245 | ) | 333 | (1 | ) | — | 87 | ||||||||||||||||||||||
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1 | — | 7,105 | — | — | 21 | — | — | 7,126 | ||||||||||||||||||||||||
Suwon New Power Co., Ltd. | — | 798 | — | — | — | — | — | 798 | ||||||||||||||||||||||||
KPGE Inc. | — | 287 | — | — | — | — | — | 287 | ||||||||||||||||||||||||
Gwangbaek Solar Power Investment Co., Ltd. | — | 2,054 | — | — | — | — | — | 2,054 | ||||||||||||||||||||||||
Goduk Clean Energy Co., Ltd. | — | 1,830 | — | — | — | — | — | 1,830 | ||||||||||||||||||||||||
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17,659 | — | (136,012 | ) | 37,418 | 39,199 | 228,718 | 4,251,802 | |||||||||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||||||
KEPCO-Uhde Inc. | — | — | — | (54 | ) | — | — | 134 | ||||||||||||||||||||||||
Eco Biomass Energy Sdn. Bhd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 27,251 | — | — | (2,176 | ) | 5,288 | (12,045 | ) | — | 18,318 | ||||||||||||||||||||||
Shuweihat Asia Operation & Maintenance Company | 792 | — | — | (907 | ) | 1,040 | (1 | ) | 484 | 1,408 | ||||||||||||||||||||||
Waterbury Lake Uranium L.P. | 19,032 | — | — | — | 22 | 1,508 | — | 20,562 | ||||||||||||||||||||||||
ASM-BG Investicii AD | 21,379 | — | — | (4,760 | ) | 2,442 | 315 | — | 19,376 | |||||||||||||||||||||||
RES Technology AD | 15,209 | — | — | — | 963 | 76 | — | 16,248 | ||||||||||||||||||||||||
KV Holdings, Inc. | 1,918 | — | — | (372 | ) | 751 | 144 | — | 2,441 | |||||||||||||||||||||||
KEPCO SPC Power Corporation | 208,306 | — | — | (45,349 | ) | 48,043 | 3,781 | 13 | 214,794 | |||||||||||||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 9,981 | — | — | — | (2,050 | ) | 218 | — | 8,149 | |||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 166,162 | — | — | — | 16,325 | 2,820 | — | 185,307 | ||||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 39,442 | — | — | — | 875 | 707 | — | 41,024 | ||||||||||||||||||||||||
Rabigh Electricity Company | 105,328 | — | — | — | 4,355 | (1,734 | ) | 1,147 | 109,096 | |||||||||||||||||||||||
Rabigh Operation & Maintenance Company Limited | 5,834 | — | — | (2,222 | ) | 3,070 | 197 | — | 6,879 | |||||||||||||||||||||||
Jamaica Public Service Company Limited | 239,632 | — | — | (4,631 | ) | 10,166 | 8,440 | — | 253,607 | |||||||||||||||||||||||
KW Nuclear Components Co., Ltd. | 7,708 | — | — | (208 | ) | 1,552 | — | — | 9,052 | |||||||||||||||||||||||
Busan Shinho Solar Power Co., Ltd. | 4,761 | — | — | (430 | ) | 714 | — | — | 5,045 | |||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 240,591 | — | — | (10,200 | ) | 25,787 | — | (256,178 | ) | — | ||||||||||||||||||||||
Global Trade Of Power System Co., Ltd. | 515 | — | — | — | 56 | — | — | 571 | ||||||||||||||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 2,676 | — | — | — | 207 | — | — | 2,883 | ||||||||||||||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 2,669 | — | — | — | (308 | ) | — | (2,361 | ) | — | ||||||||||||||||||||||
Amman Asia Electric Power Company | 177,357 | — | — | — | 20,648 | (5,841 | ) | — | 192,164 | |||||||||||||||||||||||
KAPES, Inc. | 9,079 | — | — | — | 1,767 | — | (14 | ) | 10,832 | |||||||||||||||||||||||
Dangjin Eco Power Co., Ltd. | 19,912 | — | (5,359 | ) | — | (657 | ) | 16 | (13,912 | ) | — | |||||||||||||||||||||
Honam Wind Power Co., Ltd. | 4,860 | — | — | (587 | ) | 102 | — | — | 4,375 | |||||||||||||||||||||||
Jeongam Wind Power Co., Ltd. | — | — | — | — | — | — | 4,437 | 4,437 | ||||||||||||||||||||||||
Korea Power Engineering Service Co., Ltd. | — | — | — | — | — | — | 4,902 | 4,902 | ||||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. (*3) | 42,505 | — | — | — | (7,385 | ) | — | (248 | )�� | 34,872 | ||||||||||||||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | 2,843 | — | — | — | 197 | — | — | 3,040 | ||||||||||||||||||||||||
Nghi Son 2 Power LLC | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Kelar S.A | 72,824 | — | — | — | 3,435 | (8,416 | ) | 2,619 | 70,462 | |||||||||||||||||||||||
PT. Tanjung Power Indonesia | 7,081 | 26,146 | — | — | 5,601 | (4,489 | ) | (12 | ) | 34,327 | ||||||||||||||||||||||
Incheon New Power Co., Ltd. (*4) | 579 | — | — | — | (232 | ) | — | (347 | ) | — | ||||||||||||||||||||||
Seokmun Energy Co., Ltd. | 16,751 | — | — | — | 591 | — | — | 17,342 | ||||||||||||||||||||||||
Daehan Wind Power PSC | 1,632 | — | — | — | 66 | 59 | — | 1,757 | ||||||||||||||||||||||||
Barakah One Company | 3,807 | — | — | — | (2,668 | ) | (1,139 | ) | — | — | ||||||||||||||||||||||
Nawah Energy Company | 274 | — | — | — | — | 11 | — | 285 | ||||||||||||||||||||||||
MOMENTUM | 582 | — | — | (411 | ) | 380 | 2 | — | 553 | |||||||||||||||||||||||
Daegu Green Power Co., Ltd. (*2) | 41,110 | — | — | — | 3,599 | — | (21,885 | ) | 22,824 | |||||||||||||||||||||||
Yeonggwang Wind Power Co., Ltd. | 15,304 | 2,100 | — | — | 223 | — | — | 17,627 | ||||||||||||||||||||||||
Chester Solar IV SpA | 1,851 | — | — | — | (1,746 | ) | (55 | ) | 622 | 672 | ||||||||||||||||||||||
Chester Solar V SpA | 474 | — | — | — | (619 | ) | (6 | ) | 297 | 146 | ||||||||||||||||||||||
Diego de Almagro Solar SpA | 1,663 | — | — | — | (1,014 | ) | (86 | ) | 472 | 1,035 | ||||||||||||||||||||||
South Jamaica Power Company Limited | 16,124 | 4,290 | — | — | (7,131 | ) | 580 | — | 13,863 | |||||||||||||||||||||||
Daesan Green Energy Co., Ltd. | 17,433 | — | — | — | (251 | ) | — | — | 17,182 | |||||||||||||||||||||||
RE Holiday Holdings LLC | 51,094 | — | — | — | (6,525 | ) | (2,500 | ) | 1 | 42,070 | ||||||||||||||||||||||
RE Pioneer Holdings LLC | 38,898 | — | — | (939 | ) | (5,507 | ) | (1,296 | ) | — | 31,156 | |||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 41,415 | — | — | (1,152 | ) | 4,609 | (1,957 | ) | 1 | 42,916 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
RE Astoria 2 LandCo LLC | — | — | (430 | ) | 430 | 192 | — | 5,602 | ||||||||||||||||||||||||
RE Barren Ridge LandCo LLC | 1,898 | — | — | (194 | ) | 172 | 90 | — | 1,966 | |||||||||||||||||||||||
Laurel SpA | 921 | — | — | — | (665 | ) | (82 | ) | 421 | 595 | ||||||||||||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | 3,940 | — | — | — | (28 | ) | 112 | — | 4,024 | |||||||||||||||||||||||
Chile Solar JV SpA | 36,865 | — | — | — | 842 | (2,849 | ) | 1 | 34,859 | |||||||||||||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | 8,508 | — | — | — | (651 | ) | (9 | ) | (2 | ) | 7,846 | |||||||||||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | 2,073 | 1,127 | — | — | (153 | ) | (4 | ) | — | 3,043 | ||||||||||||||||||||||
Chester Solar I SpA | 1,181 | — | — | — | (112 | ) | (79 | ) | 167 | 1,157 | ||||||||||||||||||||||
Solar Philippines Calatagan Corporation | 47,903 | — | — | (4,633 | ) | 4,305 | 1,355 | — | 48,930 | |||||||||||||||||||||||
Saemangeum Solar Power Co., Ltd. | — | 10,000 | — | — | (1,676 | ) | — | — | 8,324 | |||||||||||||||||||||||
Chungsongmeon BongSan wind power Co., Ltd. | — | 2,900 | — | — | (136 | ) | — | — | 2,764 | |||||||||||||||||||||||
Jaeun Resident Wind Power Plant Co., Ltd | — | 2,494 | — | — | (296 | ) | — | — | 2,198 | |||||||||||||||||||||||
DE Energia SpA | — | 8,364 | — | — | 647 | (346 | ) | — | 8,665 | |||||||||||||||||||||||
Eumseong Natural Gas Power Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Dangjin Eco Power Co., Ltd. (newly) | — | 9,180 | — | — | — | — | 16,481 | 25,661 | ||||||||||||||||||||||||
Haemodum Solar Co., Ltd. | — | 2,940 | — | — | — | — | — | 2,940 | ||||||||||||||||||||||||
Yangyang Wind Power Co., Ltd. | — | 10,800 | — | — | — | — | — | 10,800 | ||||||||||||||||||||||||
HORUS SOLAR, S.A. DE C.V. | — | 3,403 | — | — | — | — | — | 3,403 | ||||||||||||||||||||||||
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. | — | 672 | — | — | — | — | — | 672 | ||||||||||||||||||||||||
SUNMEX RENOVABLES, S.A. DE C.V. | — | 222 | — | — | — | — | — | 222 | ||||||||||||||||||||||||
Stavro Holding II AB | — | 5,524 | — | — | (4 | ) | 122 | (17 | ) | 5,625 | ||||||||||||||||||||||
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1,813,525 | 90,162 | (5,359 | ) | (79,601 | ) | 129,402 | (22,189 | ) | (262,911 | ) | 1,663,029 | |||||||||||||||||||||
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107,821 | (5,359 | ) | (215,613 | ) | 166,820 | 17,010 | (34,193 | ) | 5,914,831 | |||||||||||||||||||||||
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(*1) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
(*2) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
(*3) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
(*4) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
93
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 21,838 | — | — | (1,872 | ) | 2,584 | (102 | ) | (610 | ) | 21,838 | |||||||||||||||||||||
YTN Co., Ltd. | 40,606 | — | — | (180 | ) | 545 | (186 | ) | (447 | ) | 40,338 | |||||||||||||||||||||
Cheongna Energy Co., Ltd. | 8,337 | — | — | — | (4,872 | ) | — | — | 3,465 | |||||||||||||||||||||||
Gangwon Wind Power Co., Ltd. | 13,855 | — | — | (2,272 | ) | 1,637 | — | — | 13,220 | |||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 114,806 | — | — | (8,889 | ) | 21,243 | — | — | 127,160 | |||||||||||||||||||||||
Korea Power Exchange | 237,631 | — | — | — | 16,031 | — | (1,860 | ) | 251,802 | |||||||||||||||||||||||
AMEC Partners Korea Ltd. | 215 | — | — | — | (6 | ) | — | — | 209 | |||||||||||||||||||||||
Hyundai Energy Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Ecollite Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Taebaek Wind Power Co., Ltd. | 5,319 | — | — | (196 | ) | 542 | — | — | 5,665 | |||||||||||||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 3,089 | — | — | — | (520 | ) | — | — | 2,569 | |||||||||||||||||||||||
Pyeongchang Wind Power Co., Ltd. | 4,136 | — | — | — | 1,283 | — | — | 5,419 | ||||||||||||||||||||||||
Daeryun Power Co., Ltd. (*5) | 25,113 | — | — | — | (189 | ) | 184 | 991 | 26,099 | |||||||||||||||||||||||
Changjuk Wind Power Co., Ltd. | 7,515 | — | — | (416 | ) | 987 | — | — | 8,086 | |||||||||||||||||||||||
KNH Solar Co., Ltd. | 2,218 | — | — | — | 119 | — | — | 2,337 | ||||||||||||||||||||||||
SPC Power Corporation | 52,283 | — | — | (9,549 | ) | 4,235 | 10,578 | 11 | 57,558 | |||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 649,973 | — | — | (11,246 | ) | 15,156 | (6,873 | ) | — | 647,010 | ||||||||||||||||||||||
PT. Cirebon Electric Power | 97,410 | — | — | (4,432 | ) | 9,385 | 6,265 | — | 108,628 | |||||||||||||||||||||||
KNOC Nigerian East Oil Co., Ltd. | — | — | — | — | 2,615 | (471 | ) | (2,144 | ) | — | ||||||||||||||||||||||
KNOC Nigerian West Oil Co., Ltd. | — | — | — | — | 2,342 | (414 | ) | (1,928 | ) | — | ||||||||||||||||||||||
PT Wampu Electric Power | 29,403 | — | — | — | 408 | 1,286 | — | 31,097 | ||||||||||||||||||||||||
PT. Bayan Resources TBK | 451,831 | — | — | (33,651 | ) | 74,776 | 18,690 | — | 511,646 | |||||||||||||||||||||||
S-Power Co., Ltd. | 116,945 | — | — | — | (2,326 | ) | — | (53 | ) | 114,566 | ||||||||||||||||||||||
Pioneer Gas Power Limited | 38,659 | — | — | — | (17,684 | ) | (580 | ) | — | 20,395 | ||||||||||||||||||||||
Eurasia Energy Holdings | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 61,779 | 12,893 | — | — | (479 | ) | 2,972 | — | 77,165 | |||||||||||||||||||||||
Hadong Mineral Fiber Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Green Biomass Co., Ltd. | 208 | — | — | — | (93 | ) | — | — | 115 | |||||||||||||||||||||||
PT. Mutiara Jawa | — | — | — | — | 349 | 16 | — | 365 | ||||||||||||||||||||||||
Samcheok Eco Materials Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Noeul Green Energy Co., Ltd. | 2,067 | — | — | — | 5,687 | — | 261 | 8,015 | ||||||||||||||||||||||||
Naepo Green Energy Co., Ltd. (*4) | 20,598 | — | — | — | (13,511 | ) | — | (7,087 | ) | — | ||||||||||||||||||||||
Goseong Green Energy Co., Ltd. | 2,597 | — | — | — | (138 | ) | — | — | 2,459 | |||||||||||||||||||||||
Gangneung Eco Power Co., Ltd. | 2,583 | — | — | — | (88 | ) | — | — | 2,495 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 34,903 | 28,080 | — | — | (2,946 | ) | 6,673 | 890 | 67,600 | |||||||||||||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 187 | — | — | — | 15 | — | — | 202 | ||||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 53,233 | 36,971 | — | — | (13,824 | ) | — | 6 | 76,386 | |||||||||||||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
SE Green Energy Co., Ltd. | 3,476 | — | — | — | (110 | ) | — | — | 3,366 | |||||||||||||||||||||||
Daegu Photovoltaic Co., Ltd. | 1,718 | — | — | (128 | ) | 412 | — | — | 2,002 | |||||||||||||||||||||||
Jeongam Wind Power Co., Ltd. | 3,763 | — | — | — | 826 | — | — | 4,589 | ||||||||||||||||||||||||
Korea Power Engineering Service Co., Ltd. | 3,659 | — | — | (218 | ) | 929 | — | (37 | ) | 4,333 | ||||||||||||||||||||||
Busan Green Energy Co., Ltd. | 7,363 | — | — | — | 5,037 | — | 137 | 12,537 | ||||||||||||||||||||||||
Gunsan Bio Energy Co., Ltd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Korea Electric Vehicle Charging Service | 1,749 | 196 | — | — | (352 | ) | — | — | 1,593 | |||||||||||||||||||||||
Ulleungdo Natural Energy Co., Ltd. | 6,370 | — | — | — | (1,749 | ) | — | 7 | 4,628 | |||||||||||||||||||||||
Korea Nuclear Partners Co., Ltd. | 383 | — | — | — | (208 | ) | — | — | 175 | |||||||||||||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 8,560 | — | — | — | 1,841 | — | — | 10,401 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
Korea Electric Power Corporation Fund | — | — | — | (505 | ) | (280 | ) | — | 47,189 | |||||||||||||||||||||||
Energy Infra Asset Management Co., Ltd. | 476 | — | — | — | 189 | — | — | 665 | ||||||||||||||||||||||||
Daegu clean Energy Co., Ltd. | 11 | — | — | — | 6 | — | — | 17 | ||||||||||||||||||||||||
YaksuESS Co., Ltd | 194 | — | — | — | 266 | — | — | 460 | ||||||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 30,498 | — | — | — | (770 | ) | 1,233 | — | 30,961 | |||||||||||||||||||||||
Gwangyang Green Energy Co., Ltd. | 1,772 | — | — | — | (566 | ) | — | — | 1,206 | |||||||||||||||||||||||
PND solar., Ltd | 1,250 | — | — | — | (230 | ) | — | — | 1,020 | |||||||||||||||||||||||
Hyundai Eco Energy Co., Ltd. | — | 3,610 | — | — | (222 | ) | — | 3,388 | ||||||||||||||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | — | 533 | — | — | — | — | — | 533 | ||||||||||||||||||||||||
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3,837,421 | 82,283 | — | (73,049) | 216,009 | 14,148 | (11,992 | ) | 4,064,820 | ||||||||||||||||||||||||
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<Joint ventures> | ||||||||||||||||||||||||||||||||
KEPCO-Uhde Inc. | 258 | — | — | — | (70 | ) | — | — | 188 | |||||||||||||||||||||||
Eco Biomass Energy Sdn. Bhd. | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Datang Chaoyang Renewable Power Co., Ltd. (*3) | 27,262 | — | — | — | 743 | 1,009 | (29,014 | ) | — | |||||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 15,675 | — | (1,632 | ) | (499 | ) | 3,075 | 10,632 | — | 27,251 | ||||||||||||||||||||||
Shuweihat Asia Operation & Maintenance Company | 663 | — | — | (859 | ) | 946 | 42 | — | 792 | |||||||||||||||||||||||
Waterbury Lake Uranium L.P. | 19,781 | — | — | — | (3 | ) | (746 | ) | — | 19,032 | ||||||||||||||||||||||
ASM-BG Investicii AD | 21,202 | — | — | (1,039 | ) | 2,236 | (1,020 | ) | — | 21,379 | ||||||||||||||||||||||
RES Technology AD | 14,375 | — | — | — | 812 | 22 | — | 15,209 | ||||||||||||||||||||||||
KV Holdings, Inc. | 1,918 | — | — | (735 | ) | 772 | (37 | ) | — | 1,918 | ||||||||||||||||||||||
KEPCO SPC Power Corporation | 217,094 | — | — | (41,601 | ) | 44,909 | (12,092 | ) | (4 | ) | 208,306 | |||||||||||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 10,840 | — | — | — | (818 | ) | (41 | ) | — | 9,981 | ||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 171,055 | — | — | (18,859 | ) | 14,808 | (842 | ) | — | 166,162 | ||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. (*3) | 11,060 | — | — | — | 582 | (1,214 | ) | 29,014 | 39,442 | |||||||||||||||||||||||
Rabigh Electricity Company | 99,356 | — | — | (29,067 | ) | 13,305 | 22,371 | (637 | ) | 105,328 | ||||||||||||||||||||||
Rabigh Operation & Maintenance Company Limited | 3,987 | — | — | (1,147 | ) | 2,820 | 174 | — | 5,834 | |||||||||||||||||||||||
Jamaica Public Service Company Limited | 221,153 | — | — | (4,472 | ) | 13,099 | 9,852 | — | 239,632 | |||||||||||||||||||||||
KW Nuclear Components Co., Ltd. | 6,703 | — | — | (208 | ) | 1,213 | — | — | 7,708 | |||||||||||||||||||||||
Busan Shinho Solar Power Co., Ltd. | 4,346 | — | — | (340 | ) | 755 | — | — | 4,761 | |||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 220,727 | — | — | — | 20,061 | — | (197 | ) | 240,591 | |||||||||||||||||||||||
Global Trade Of Power System Co., Ltd. | 577 | — | — | — | (62 | ) | — | — | 515 | |||||||||||||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 2,463 | — | — | — | 213 | — | — | 2,676 | ||||||||||||||||||||||||
KODE NOVUS I LLC (*1) | — | — | — | — | — | 1,374 | (1,374 | ) | — | |||||||||||||||||||||||
KODE NOVUS II LLC (*2) | — | — | — | — | — | 810 | (810 | ) | — | |||||||||||||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 2,969 | — | — | — | (300 | ) | — | — | 2,669 | |||||||||||||||||||||||
Amman Asia Electric Power Company | 145,676 | — | — | — | 19,604 | 12,077 | — | 177,357 | ||||||||||||||||||||||||
KAPES, Inc. | 7,476 | — | — | — | 1,543 | — | 60 | 9,079 | ||||||||||||||||||||||||
Dangjin Eco Power Co., Ltd. | 57,928 | — | — | — | (38,042 | ) | (65 | ) | 91 | 19,912 | ||||||||||||||||||||||
Honam Wind Power Co., Ltd. | 4,302 | — | — | (348 | ) | 906 | — | — | 4,860 | |||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 48,118 | — | — | — | (5,613 | ) | — | — | 42,505 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisition | Disposal | Dividends received | Share of income (loss) | Other comprehensive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | — | — | — | 109 | — | — | 2,843 | |||||||||||||||||||||||||
Nghi Son 2 Power LLC | 183 | — | — | — | 2,657 | (2,840 | ) | — | — | |||||||||||||||||||||||
Kelar S.A | 67,233 | — | — | — | 2,732 | 2,859 | — | 72,824 | ||||||||||||||||||||||||
PT. Tanjung Power Indonesia | 1,776 | — | — | — | 3,373 | 1,928 | 4 | 7,081 | ||||||||||||||||||||||||
Incheon New Power Co., Ltd. | 619 | — | — | (41 | ) | 1 | — | — | 579 | |||||||||||||||||||||||
Seokmun Energy Co., Ltd. | 13,786 | — | — | — | 2,965 | — | — | 16,751 | ||||||||||||||||||||||||
Daehan Wind Power PSC | — | 2,288 | — | — | (1,311 | ) | 37 | 618 | 1,632 | |||||||||||||||||||||||
Barakah One Company | 626 | — | — | — | 2,162 | 1,019 | — | 3,807 | ||||||||||||||||||||||||
Nawah Energy Company | 258 | — | — | — | 4 | 12 | — | 274 | ||||||||||||||||||||||||
MOMENTUM | 391 | — | — | — | 195 | (4 | ) | — | 582 | |||||||||||||||||||||||
Daegu Green Power Co., Ltd. | 42,391 | — | — | — | (1,283 | ) | — | 2 | 41,110 | |||||||||||||||||||||||
Yeonggwang Wind Power Co., Ltd. | 15,294 | — | — | — | 10 | — | — | 15,304 | ||||||||||||||||||||||||
Chester Solar IV SpA | 1,700 | — | — | — | 301 | (150 | ) | — | 1,851 | |||||||||||||||||||||||
Chester Solar V SpA | 525 | — | — | — | (21 | ) | (30 | ) | — | 474 | ||||||||||||||||||||||
Diego de Almagro Solar SpA | 2,091 | — | — | — | (299 | ) | (129 | ) | — | 1,663 | ||||||||||||||||||||||
South Jamaica Power Company Limited | 6,704 | 9,141 | — | — | (184 | ) | 463 | — | 16,124 | |||||||||||||||||||||||
Daesan Green Energy Co., Ltd. | — | 17,850 | — | — | (417 | ) | — | — | 17,433 | |||||||||||||||||||||||
RE Holiday Holdings LLC | — | 42,948 | — | (112 | ) | 8,055 | 203 | — | 51,094 | |||||||||||||||||||||||
RE Pioneer Holdings LLC | — | 27,891 | — | (979 | ) | 11,585 | 401 | — | 38,898 | |||||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | — | 28,021 | — | (1,114 | ) | 13,994 | 514 | — | 41,415 | |||||||||||||||||||||||
RE Astoria 2 LandCo LLC | — | 5,188 | — | (504 | ) | 866 | (140 | ) | — | 5,410 | ||||||||||||||||||||||
RE Barren Ridge LandCo LLC | — | 2,187 | — | (202 | ) | (25 | ) | (62 | ) | — | 1,898 | |||||||||||||||||||||
Laurel SpA | — | 1,222 | — | — | (309 | ) | 8 | — | 921 | |||||||||||||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | — | 4,095 | — | — | (23 | ) | (132 | ) | — | 3,940 | ||||||||||||||||||||||
Chile Solar JV SpA | — | 36,654 | — | — | 4,453 | (5,278 | ) | 1,036 | 36,865 | |||||||||||||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | — | 8,500 | — | — | 8 | — | — | 8,508 | ||||||||||||||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | — | 2,073 | — | — | — | — | — | 2,073 | ||||||||||||||||||||||||
Chester Solar I SpA | — | 1,181 | — | — | — | — | — | 1,181 | ||||||||||||||||||||||||
Solar Philippines Calatagan Corporation | — | 47,903 | — | — | — | — | — | 47,903 | ||||||||||||||||||||||||
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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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(*1) | The Group reclassified its shares of KODE NOVUS I LLC to financial assets at FVOCI during the year ended December 31, 2018 due to non-participation of capital increase that resulted in loss of significant influence. |
(*2) | The Group sold all of its shares of KODE NOVUS II LLC during the year ended December 31, 2018. |
(*3) | Datang Chaoyang Renewable Power Co., Ltd. was merged with Datang KEPCO Chaoyang Renewable Power Co., Ltd. during the year ended December 31, 2018. |
(*4) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
(*5) | It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Group recognized an impairment loss of |
96
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation (*1) | 31,165,334 | 24,982,640 | 38,764 | |||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 186,434 | 98,872 | 306,026 | 17,467 | ||||||||||||
YTN Co., Ltd. | 281,699 | 96,211 | 127,782 | (1,230 | ) | |||||||||||
Cheongna Energy Co., Ltd. | 383,034 | 383,288 | 68,626 | (2,567 | ) | |||||||||||
Gangwon Wind Power Co., Ltd. | 83,528 | 1,674 | 24,116 | 9,380 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,086,738 | 658,279 | 507,653 | 26,222 | ||||||||||||
Korea Power Exchange | 315,683 | 54,926 | 107,034 | 8,268 | ||||||||||||
Hyundai Energy Co., Ltd. | 465,238 | 549,940 | 91,842 | (27,882 | ) | |||||||||||
Ecollite Co., Ltd. | 1,838 | 304 | — | (97 | ) | |||||||||||
Taebaek Wind Power Co., Ltd. | 36,182 | 8,027 | 6,177 | 5,494 | ||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 35,061 | 24,847 | 349 | (61 | ) | |||||||||||
Pyeongchang Wind Power Co., Ltd. | 79,756 | 56,248 | 10,713 | 2,010 | ||||||||||||
Daeryun Power Co., Ltd. | 802,546 | 512,757 | 163,129 | 1,836 | ||||||||||||
Changjuk Wind Power Co., Ltd. | 29,875 | 1,476 | 6,076 | 1,447 | ||||||||||||
KNH Solar Co., Ltd. | 20,465 | 11,641 | 3,377 | 278 | ||||||||||||
SPC Power Corporation | 250,544 | 22,459 | 63,218 | 39,876 | ||||||||||||
Gemeng International Energy Co., Ltd. | 6,758,957 | 4,785,740 | 2,024,730 | 95,435 | ||||||||||||
PT. Cirebon Electric Power | 852,457 | 403,639 | 277,370 | 39,581 | ||||||||||||
KNOC Nigerian East Oil Co., Ltd. | 58,402 | 134,361 | — | (182 | ) | |||||||||||
KNOC Nigerian West Oil Co., Ltd. | 54,275 | 124,086 | — | (180 | ) | |||||||||||
PT Wampu Electric Power | 222,266 | 158,451 | 18,165 | (2,315 | ) | |||||||||||
PT. Bayan Resources TBK | 1,302,637 | 622,576 | 1,707,387 | 252,855 | ||||||||||||
S-Power Co., Ltd. | 805,622 | 566,025 | 576,554 | 2,319 | ||||||||||||
Pioneer Gas Power Limited | 309,059 | 367,399 | — | (54,501 | ) | |||||||||||
Eurasia Energy Holdings | 592 | 1,056 | — | — | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 1,194,125 | 898,023 | 6,731 | (40,437 | ) | |||||||||||
Hadong Mineral Fiber Co., Ltd. | 203 | 231 | — | — | ||||||||||||
Green Biomass Co., Ltd. | 3,866 | 2,487 | 17 | (925 | ) | |||||||||||
PT. Mutiara Jawa | 26,109 | 21,150 | 11,196 | 3,396 | ||||||||||||
Samcheok Eco Materials Co., Ltd. | 26,625 | 3,209 | 10,876 | 1,946 | ||||||||||||
Noeul Green Energy Co., Ltd. | 137,370 | 114,578 | 36,435 | (4,810 | ) | |||||||||||
Naepo Green Energy Co., Ltd. | 77,070 | 99,345 | 6,572 | (31,577 | ) | |||||||||||
Goseong Green Energy Co., Ltd. | 3,399,058 | 3,177,210 | — | (10,276 | ) | |||||||||||
Gangneung Eco Power Co., Ltd. | 1,362,692 | 1,204,202 | — | (3,830 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 981,387 | 807,107 | 119,162 | 11,847 | ||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 2,483 | 1,722 | 454 | 47 | ||||||||||||
Dongducheon Dream Power Co., Ltd. | 1,474,224 | 1,206,478 | 689,414 | 2,849 | ||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | 64,111 | 13,240 | — | — | ||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 6,181 | 1,450 | — | (617 | ) | |||||||||||
GS Donghae Electric Power Co., Ltd. | 2,301,774 | 1,548,883 | 688,055 | 75,842 | ||||||||||||
Daegu Photovoltaic Co., Ltd. | 15,486 | 8,385 | 3,639 | 1,442 | ||||||||||||
Busan Green Energy Co., Ltd. | 173,537 | 136,857 | 52,256 | (6,496 | ) | |||||||||||
Gunsan Bio Energy Co., Ltd. | 10,614 | 28,062 | — | (5,777 | ) | |||||||||||
Korea Electric Vehicle Charging Service | 12,810 | 9,013 | 8,428 | (1,841 | ) | |||||||||||
Korea Nuclear Partners Co., Ltd. | 928 | 375 | 1,441 | (50 | ) | |||||||||||
Korea Electric Power Corporation Fund | 42,162 | 239 | 127 | (5,430 | ) | |||||||||||
Energy Infra Asset Management Co., Ltd. | 8,712 | 721 | 5,118 | 1,415 | ||||||||||||
Daegu clean Energy Co., Ltd. | 371 | 323 | — | (14 | ) | |||||||||||
YaksuESS Co., Ltd | 7,325 | 5,551 | 1,191 | 363 | ||||||||||||
Nepal Water & Energy Development Company Private Limited | 78,309 | 26,783 | — | (1,380 | ) | |||||||||||
Gwangyang Green Energy Co., Ltd. | 28,816 | 24,164 | — | (1,007 | ) | |||||||||||
PND solar., Ltd | 40,941 | 37,526 | 6,908 | 1,665 | ||||||||||||
Hyundai Eco Energy Co., Ltd. | 209,395 | 190,622 | 13,343 | 1,306 | ||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | 46,488 | 45,594 | 6,511 | (1,510 | ) | |||||||||||
Green Energy Electricity Generation Co., Ltd. | 33,937 | 36,060 | — | (5,923 | ) | |||||||||||
Korea Energy Solutions Co., Ltd. | 1,285 | 18 | 134 | (233 | ) | |||||||||||
ITR Co., Ltd. | 376 | 214 | 167 | (88 | ) | |||||||||||
Structure test network Co., Ltd. | 89 | 249 | 76 | (72 | ) |
97
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Namjeongsusang Solar Power Operation Co., Ltd. | 29,310 | — | (1,149 | ) | ||||||||||||
Indeck Niles Development, LLC | 49,465 | 174 | — | (25,430 | ) | |||||||||||
Indeck Niles Asset Management, LLC | 271 | 9 | 1,513 | 753 | ||||||||||||
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1 | 14,559 | 15 | 59 | 44 | ||||||||||||
Suwon New Power Co., Ltd. | 2,000 | — | — | — | ||||||||||||
KPGE Inc. | 984 | — | — | (6 | ) | |||||||||||
Gwangbaek Solar Power Investment Co., Ltd. | 193,464 | 183,063 | 7,635 | (355 | ) | |||||||||||
Goduk Clean Energy Co., Ltd. | 3,000 | — | — | — | ||||||||||||
<Joint ventures> | ||||||||||||||||
KEPCO-Uhde Inc. | 270 | 7 | — | (107 | ) | |||||||||||
Shuweihat Asia Power Investment B.V. | 37,389 | 5 | — | (159 | ) | |||||||||||
Shuweihat Asia Operation & Maintenance Company | 2,605 | 45 | 2,570 | 1,892 | ||||||||||||
Waterbury Lake Uranium L.P. | 61,548 | 4 | — | — | ||||||||||||
ASM-BG Investicii AD | 78,191 | 39,439 | 13,200 | 4,894 | ||||||||||||
RES Technology AD | 66,821 | 34,325 | 8,384 | 1,914 | ||||||||||||
KV Holdings, Inc. | 6,101 | — | 25 | 1,876 | ||||||||||||
KEPCO SPC Power Corporation | 308,274 | 22,643 | 187,867 | 64,152 | ||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 77,313 | 56,941 | 6,106 | (5,175 | ) | |||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 765,598 | 302,329 | 122,398 | 40,371 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 189,157 | 86,596 | 23,910 | 2,188 | ||||||||||||
Rabigh Electricity Company | 2,538,719 | 2,100,347 | 208,514 | 1,567 | ||||||||||||
Rabigh Operation & Maintenance Company Limited | 36,121 | 18,923 | 23,777 | 7,203 | ||||||||||||
Jamaica Public Service Company Limited | 1,543,049 | 940,609 | 1,035,399 | 32,828 | ||||||||||||
KW Nuclear Components Co., Ltd. | 31,326 | 10,820 | 11,305 | 3,837 | ||||||||||||
Busan Shinho Solar Power Co., Ltd. | 42,318 | 22,137 | 7,843 | 2,856 | ||||||||||||
Global Trade Of Power System Co., Ltd. | 2,993 | 1,025 | 3,323 | 134 | ||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 17,653 | 7,712 | 2,991 | 709 | ||||||||||||
Amman Asia Electric Power Company | 821,997 | 501,723 | 23,866 | 34,424 | ||||||||||||
KAPES, Inc. | 124,396 | 103,158 | 93,831 | 3,465 | ||||||||||||
Honam Wind Power Co., Ltd. | 39,680 | 24,703 | 5,365 | 354 | ||||||||||||
Jeongam Wind Power Co., Ltd. | 94,134 | 83,041 | 11,644 | 2,005 | ||||||||||||
Korea Power Engineering Service Co., Ltd. | 19,052 | 2,150 | 12,284 | 1,749 | ||||||||||||
Chun-cheon Energy Co., Ltd. | 607,823 | 490,375 | 313,438 | (24,490 | ) | |||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | 99,552 | 79,322 | 11,739 | 1,342 | ||||||||||||
Nghi Son 2 Power LLC | 1,589,928 | 1,795,578 | 1,008,326 | 71,803 | ||||||||||||
Kelar S.A | 634,633 | 530,335 | 86,702 | 8,867 | ||||||||||||
PT. Tanjung Power Indonesia | 654,365 | 556,287 | 109,825 | 16,489 | ||||||||||||
Incheon New Power Co., Ltd. | 4,749 | 3,553 | 1,951 | (800 | ) | |||||||||||
Seokmun Energy Co., Ltd. | 242,332 | 182,533 | 44,733 | 2,606 | ||||||||||||
Daehan Wind Power PSC | 89,904 | 86,390 | — | (767 | ) | |||||||||||
Barakah One Company | 24,330,632 | 24,546,421 | — | (112,114 | ) | |||||||||||
Nawah Energy Company | 120,987 | 119,405 | — | 3 | ||||||||||||
MOMENTUM | 8,904 | 7,245 | 21,171 | 1,099 | ||||||||||||
Daegu Green Power Co., Ltd. | 579,593 | 500,092 | 301,339 | 4,899 | ||||||||||||
Yeonggwang Wind Power Co., Ltd. | 262,610 | 225,361 | 24,256 | (2,032 | ) | |||||||||||
Chester Solar IV SpA | 13,443 | 12,079 | 1,590 | (1,057 | ) | |||||||||||
Chester Solar V SpA | 4,677 | 4,625 | 519 | (402 | ) | |||||||||||
Diego de Almagro Solar SpA | 18,984 | 16,901 | 1,954 | (1,104 | ) | |||||||||||
South Jamaica Power Company Limited | 364,347 | 295,029 | 7,224 | (35,650 | ) | |||||||||||
Daesan Green Energy Co., Ltd. | 232,170 | 183,079 | — | (717 | ) | |||||||||||
RE Holiday Holdings LLC | 331,862 | 247,722 | 18,744 | (345 | ) | |||||||||||
RE Pioneer Holdings LLC | 246,571 | 184,258 | 12,207 | (1,912 | ) | |||||||||||
RE Barren Ridge 1 Holdings LLC | 209,850 | 124,017 | 10,384 | 7,630 | ||||||||||||
RE Astoria 2 Land Co LLC | 11,422 | 217 | 656 | 651 | ||||||||||||
RE Barren Ridge Land Co LLC | 4,019 | 87 | 262 | 260 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2019 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Laurel SpA | 12,076 | 961 | (1,130 | ) | ||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | 32,883 | 425 | — | (232 | ) | |||||||||||
Chile Solar JV SpA | 69,903 | 186 | 591 | 1,686 | ||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | 70,270 | 49,500 | — | (1,602 | ) | |||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | 51,247 | 40,969 | — | (549 | ) | |||||||||||
Chester Solar I SpA | 7,859 | 5,842 | — | (204 | ) | |||||||||||
Solar Philippines Calatagan Corporation | 98,577 | 47,956 | 18,720 | 11,331 | ||||||||||||
Saemangeum Solar Power Co., Ltd. | 13,740 | 3,270 | — | (1,875 | ) | |||||||||||
Chungsongmeon BongSan wind power Co., Ltd. | 27,659 | 24,272 | — | (1,365 | ) | |||||||||||
Jaeun Resident Wind Power Plant Co., Ltd | 31,402 | 23,823 | — | (844 | ) | |||||||||||
DE Energia SpA | 64,959 | 50,971 | 1,254 | (2,645 | ) | |||||||||||
Dangjin Eco Power Co., Ltd. (newly) | 99,907 | 25,436 | 107 | (737 | ) | |||||||||||
Haemodum Solar Co., Ltd. | 7,237 | 1,237 | — | — | ||||||||||||
Yangyang Wind Power Co., Ltd. | 10,764 | — | — | (11 | ) | |||||||||||
HORUS SOLAR, S.A. DE C.V. | 10,566 | 8,503 | — | (7 | ) | |||||||||||
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. | 3,848 | 2,885 | — | 22 | ||||||||||||
SUNMEX RENOVABLES, S.A. DE C.V. | 3,170 | 2,171 | — | 13 | ||||||||||||
Stavro Holding II AB | 28,141 | 13 | — | (18 | ) |
(*1) | The profit for the years ended December 31, 2019 and 2018 are net of net income attributable to non-controlling interests. |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation (*1) | 31,186,488 | 26,185,038 | 523,480 | |||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 144,425 | 69,123 | 325,694 | 9,987 | ||||||||||||
YTN Co., Ltd. | 286,964 | 98,682 | 132,382 | 1,587 | ||||||||||||
Cheongna Energy Co., Ltd. | 431,234 | 428,921 | 64,594 | (11,110 | ) | |||||||||||
Gangwon Wind Power Co., Ltd. | 89,614 | 1,805 | 25,407 | 10,926 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,127,220 | 688,738 | 501,798 | 66,925 | ||||||||||||
Korea Power Exchange | 304,318 | 52,516 | 108,571 | 16,031 | ||||||||||||
AMEC Partners Korea Ltd. | 1,113 | 14 | — | (26 | ) | |||||||||||
Hyundai Energy Co., Ltd. | 470,818 | 527,590 | 101,998 | (33,947 | ) | |||||||||||
Ecollite Co., Ltd. | 1,944 | 312 | — | (68 | ) | |||||||||||
Taebaek Wind Power Co., Ltd. | 36,986 | 14,325 | 8,233 | 2,170 | ||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 10,929 | 653 | — | (2,082 | ) | |||||||||||
Pyeongchang Wind Power Co., Ltd. | 82,038 | 60,362 | 12,615 | 4,249 | ||||||||||||
Daeryun Power Co., Ltd. | 798,569 | 510,358 | 62,252 | (4,958 | ) | |||||||||||
Changjuk Wind Power Co., Ltd. | 33,148 | 6,194 | 7,929 | 3,291 | ||||||||||||
KNH Solar Co., Ltd. | 22,598 | 13,942 | 3,586 | 439 | ||||||||||||
SPC Power Corporation | 225,599 | 16,819 | 50,317 | 37,355 | ||||||||||||
Gemeng International Energy Co., Ltd. | 7,155,937 | 4,420,561 | 1,921,367 | 120,558 | ||||||||||||
PT. Cirebon Electric Power | 876,069 | 481,061 | 274,962 | 33,144 | ||||||||||||
KNOC Nigerian East Oil Co., Ltd. | 78,841 | 152,017 | — | (398 | ) | |||||||||||
KNOC Nigerian West Oil Co., Ltd. | 70,437 | 137,663 | — | (400 | ) | |||||||||||
PT Wampu Electric Power | 223,009 | 155,406 | 13,463 | 4,624 | ||||||||||||
PT. Bayan Resources TBK | 1,388,199 | 566,890 | 1,707,387 | 521,666 | ||||||||||||
S-Power Co., Ltd. | 825,354 | 588,022 | 551,378 | (6,185 | ) | |||||||||||
Pioneer Gas Power Limited | 311,742 | 316,810 | — | (45,934 | ) | |||||||||||
Eurasia Energy Holdings | 572 | 1,020 | — | — | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 1,015,013 | 702,187 | — | (1,214 | ) | |||||||||||
Hadong Mineral Fiber Co., Ltd. | 203 | 231 | — | — | ||||||||||||
Green Biomass Co., Ltd. | 4,411 | 3,107 | 909 | (1,057 | ) | |||||||||||
PT. Mutiara Jawa | 24,022 | 22,763 | 14,393 | 3,917 | ||||||||||||
Samcheok Eco Materials Co., Ltd. | 24,391 | 2,921 | 4,135 | (1,836 | ) | |||||||||||
Noeul Green Energy Co., Ltd. | 147,886 | 120,249 | 58,686 | 19,453 | ||||||||||||
Naepo Green Energy Co., Ltd. | 93,194 | 76,190 | 6,459 | (6,623 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Goseong Green Energy Co., Ltd. | 1,659,415 | — | (7,323 | ) | ||||||||||||
Gangneung Eco Power Co., Ltd. | 813,938 | 651,621 | — | (4,194 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 674,100 | 511,582 | — | 682 | ||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 2,630 | 1,915 | 455 | 52 | ||||||||||||
Dongducheon Dream Power Co., Ltd. | 1,512,510 | 1,244,178 | 828,430 | (22,864 | ) | |||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | 63,163 | 13,044 | — | — | ||||||||||||
SE Green Energy Co., Ltd. | 7,048 | — | — | (230 | ) | |||||||||||
Daegu Photovoltaic Co., Ltd. | 16,828 | 9,923 | 3,695 | 1,645 | ||||||||||||
Jeongam Wind Power Co., Ltd. | 93,444 | 81,971 | 1,559 | 2,154 | ||||||||||||
Korea Power Engineering Service Co., Ltd. | 18,609 | 3,666 | 20,809 | 3,207 | ||||||||||||
Busan Green Energy Co., Ltd. | 195,227 | 151,995 | 77,011 | 17,370 | ||||||||||||
Gunsan Bio Energy Co., Ltd. | 8,990 | 20,660 | — | (4,420 | ) | |||||||||||
Korea Electric Vehicle Charging Service | 15,019 | 9,328 | 8,615 | (1,056 | ) | |||||||||||
Ulleungdo Natural Energy Co., Ltd. | 17,134 | 1,625 | — | (5,855 | ) | |||||||||||
Korea Nuclear Partners Co., Ltd. | 615 | 12 | 80 | (707 | ) | |||||||||||
Tamra Offshore Wind Power Co., Ltd. | 170,238 | 131,717 | 21,701 | 4,077 | ||||||||||||
Korea Electric Power Corporation Fund | 48,280 | 176 | 1,315 | (649 | ) | |||||||||||
Energy Infra Asset Management Co., Ltd. | 7,225 | 507 | 5,757 | 2,193 | ||||||||||||
Daegu clean Energy Co., Ltd. | 389 | 328 | — | (190 | ) | |||||||||||
YaksuESS Co., Ltd | 7,525 | 5,944 | 2,094 | 1,259 | ||||||||||||
Nepal Water & Energy Development Company Private Limited | 55,453 | 4,249 | — | (984 | ) | |||||||||||
Gwangyang Green Energy Co., Ltd. | 29,234 | 23,293 | — | (2,831 | ) | |||||||||||
PND solar., Ltd | 42,283 | 39,297 | 1,094 | (795 | ) | |||||||||||
Hyundai Eco Energy Co., Ltd. | 165,555 | 148,852 | — | (2,193 | ) | |||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | 46,027 | 43,606 | 7,604 | (493 | ) | |||||||||||
<Joint ventures> | ||||||||||||||||
KEPCO-Uhde Inc. | 34 | 18 | (139 | ) | ||||||||||||
Eco Biomass Energy Sdn. Bhd. | — | — | — | — | ||||||||||||
Shuweihat Asia Power Investment B.V. | 55,614 | — | — | (187 | ) | |||||||||||
Shuweihat Asia Operation & Maintenance Company | 1,472 | 31 | 2,391 | 1,719 | ||||||||||||
Waterbury Lake Uranium L.P. | 55,933 | 64 | — | — | ||||||||||||
ASM-BG Investicii AD | 84,924 | 42,166 | 12,745 | 4,406 | ||||||||||||
RES Technology AD | 69,609 | 39,192 | 7,879 | 1,567 | ||||||||||||
KV Holdings, Inc. | 4,795 | — | 8 | 1,257 | ||||||||||||
KEPCO SPC Power Corporation | 312,093 | 35,091 | 184,046 | 59,543 | ||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 79,354 | 54,402 | 8,323 | (2,046 | ) | |||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 751,551 | 336,024 | 117,270 | 37,159 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 190,951 | 92,347 | 18,824 | 2,557 | ||||||||||||
Rabigh Electricity Company | 2,448,690 | 2,003,050 | 274,184 | 38,789 | ||||||||||||
Rabigh Operation & Maintenance Company Limited | 26,172 | 11,587 | 26,387 | 7,173 | ||||||||||||
Jamaica Public Service Company Limited | 1,396,421 | 827,837 | 992,677 | 32,507 | ||||||||||||
KW Nuclear Components Co., Ltd. | 24,598 | 7,077 | 6,031 | 2,543 | ||||||||||||
Busan Shinho Solar Power Co., Ltd. | 45,538 | 26,494 | 7,901 | 3,018 | ||||||||||||
GS Donghae Electric Power Co., Ltd. | 2,259,129 | 1,551,509 | 787,425 | 58,976 | ||||||||||||
Global Trade Of Power System Co., Ltd. | 2,039 | 263 | 1,368 | (134 | ) | |||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 18,443 | 9,215 | 2,986 | 692 | ||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 6,440 | 1,091 | — | (590 | ) | |||||||||||
Amman Asia Electric Power Company | 792,532 | 496,791 | 23,676 | 32,674 | ||||||||||||
KAPES, Inc. | 82,494 | 64,691 | 57,047 | 4,710 | ||||||||||||
Dangjin Eco Power Co., Ltd. | 51,125 | 260 | — | (111,789 | ) | |||||||||||
Honam Wind Power Co., Ltd. | 43,713 | 27,066 | 7,700 | 3,122 | ||||||||||||
Chun-cheon Energy Co., Ltd. | 666,050 | 523,904 | 320,950 | (19,133 | ) | |||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | 99,368 | 80,450 | 11,366 | 734 | ||||||||||||
Nghi Son 2 Power LLC | 477,947 | 561,266 | 144,381 | 8,979 | ||||||||||||
Kelar S.A | 626,206 | 518,135 | 87,507 | 8,587 | ||||||||||||
PT. Tanjung Power Indonesia | 505,551 | 485,321 | 109,029 | 9,717 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(4). | Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||
2018 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Incheon New Power Co., Ltd. | 4,563 | 2,687 | 3 | |||||||||||||
Seokmun Energy Co., Ltd. | 253,544 | 195,782 | 50,052 | 10,224 | ||||||||||||
Daehan Wind Power PSC | 33,081 | 29,817 | — | (1,799 | ) | |||||||||||
Barakah One Company | 21,480,187 | 21,459,035 | — | (3,062 | ) | |||||||||||
Nawah Energy Company | 70,386 | 68,864 | — | — | ||||||||||||
MOMENTUM | 7,476 | 5,730 | 16,933 | 520 | ||||||||||||
Daegu Green Power Co., Ltd. | 591,263 | 523,972 | 291,734 | (4,424 | ) | |||||||||||
Yeonggwang Wind Power Co., Ltd. | 255,777 | 219,013 | — | (145 | ) | |||||||||||
Chester Solar IV SpA | 15,307 | 13,114 | 1,415 | 609 | ||||||||||||
Chester Solar V SpA | 4,759 | 4,324 | 298 | (19 | ) | |||||||||||
Diego de Almagro Solar SpA | 21,317 | 19,399 | 78 | (340 | ) | |||||||||||
South Jamaica Power Company Limited | 294,341 | 213,723 | — | (932 | ) | |||||||||||
Daesan Green Energy Co., Ltd. | 52,582 | 2,774 | — | (1,192 | ) | |||||||||||
RE Holiday Holdings LLC | 334,742 | 232,553 | 9,451 | 1,319 | ||||||||||||
RE Pioneer Holdings LLC | 252,512 | 174,717 | 12,364 | 6,544 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | 221,304 | 138,473 | 10,567 | 8,625 | ||||||||||||
RE Astoria 2 Land Co LLC | 11,030 | 210 | 619 | 583 | ||||||||||||
RE Barren Ridge Land Co LLC | 3,881 | 84 | 248 | 230 | ||||||||||||
Laurel SpA | 5,475 | 4,572 | — | (369 | ) | |||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | 31,958 | 173 | — | (222 | ) | |||||||||||
Chile Solar JV SpA | 73,740 | 10 | 73 | 8,906 | ||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | 18,766 | 499 | — | 18 | ||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | 8,221 | 24 | — | — | ||||||||||||
Chester Solar I SpA | 1,712 | 562 | — | (81 | ) | |||||||||||
Solar Philippines Calatagan Corporation | 121,650 | 51,219 | 16,689 | 8,732 |
(*1) | The profit for the years ended December 31, 2019 and 2018 are net of net income attributable to non-controlling interests. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||
Korea Gas Corporation | 21.57 | % | 1,757,205 | — | — | (63,238 | ) | 1,693,967 | ||||||||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 87,562 | 29.00 | % | 25,393 | — | — | — | 25,393 | ||||||||||||||||||||
YTN Co., Ltd. | 185,488 | 21.43 | % | 39,747 | — | — | — | 39,747 | ||||||||||||||||||||
Cheongna Energy Co., Ltd. | (254 | ) | 43.90 | % | (112 | ) | 2,584 | (1,061 | ) | — | 1,411 | |||||||||||||||||
Gangwon Wind Power Co., Ltd. | 81,854 | 15.00 | % | 12,278 | 49 | — | — | 12,327 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 428,459 | 29.00 | % | 124,253 | — | — | — | 124,253 | ||||||||||||||||||||
Korea Power Exchange | 260,757 | 100.00 | % | 260,757 | — | — | (1,858 | ) | 258,899 | |||||||||||||||||||
Hyundai Energy Co., Ltd. | (84,702 | ) | 46.30 | % | (39,217 | ) | — | (954 | ) | 40,171 | — | |||||||||||||||||
Ecollite Co., Ltd. | 1,534 | 36.10 | % | 554 | — | — | (554 | ) | — | |||||||||||||||||||
Taebaek Wind Power Co., Ltd. | 28,155 | 25.00 | % | 7,039 | — | — | — | 7,039 | ||||||||||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 10,214 | 25.00 | % | 2,553 | — | — | — | 2,553 | ||||||||||||||||||||
Pyeongchang Wind Power Co., Ltd. | 23,508 | 25.00 | % | 5,877 | — | — | — | 5,877 | ||||||||||||||||||||
Daeryun Power Co., Ltd. | 289,789 | 9.34 | % | 27,066 | — | — | (819 | ) | 26,247 | |||||||||||||||||||
Changjuk Wind Power Co., Ltd. | 28,399 | 30.00 | % | 8,520 | — | — | — | 8,520 | ||||||||||||||||||||
KNH Solar Co., Ltd. | 8,824 | 27.00 | % | 2,382 | — | — | — | 2,382 | ||||||||||||||||||||
SPC Power Corporation | 228,085 | 38.00 | % | 86,672 | — | — | (23,089 | ) | 63,583 | |||||||||||||||||||
Gemeng International Energy Co., Ltd. | 1,973,217 | 34.00 | % | 670,896 | — | — | — | 670,896 | ||||||||||||||||||||
PT. Cirebon Electric Power | 448,818 | 27.50 | % | 123,425 | — | — | — | 123,425 | ||||||||||||||||||||
KNOC Nigerian East Oil Co., Ltd. | (75,959 | ) | 14.63 | % | (11,113 | ) | — | — | 11,113 | — | ||||||||||||||||||
KNOC Nigerian West Oil Co., Ltd. | (69,811 | ) | 14.63 | % | (10,213 | ) | — | — | 10,213 | — | ||||||||||||||||||
PT Wampu Electric Power | 63,815 | 46.00 | % | 29,355 | — | — | — | 29,355 | ||||||||||||||||||||
PT. Bayan Resources TBK | 680,061 | 20.00 | % | 136,012 | 385,508 | — | (76,379 | ) | 445,141 | |||||||||||||||||||
S-Power Co., Ltd. | 239,597 | 49.00 | % | 117,403 | — | (1,619 | ) | — | 115,784 | |||||||||||||||||||
Pioneer Gas Power Limited | (58,340 | ) | 38.50 | % | (22,459 | ) | 22,278 | — | 181 | — | ||||||||||||||||||
Eurasia Energy Holdings | (464 | ) | 40.00 | % | (186 | ) | — | — | 186 | — | ||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 296,102 | 25.00 | % | 74,026 | 305 | (1,106 | ) | (290 | ) | 72,935 | ||||||||||||||||||
Hadong Mineral Fiber Co., Ltd. | (28 | ) | 8.33 | % | (2 | ) | — | — | 2 | — | ||||||||||||||||||
Green Biomass Co., Ltd. | 1,379 | 7.85 | % | 108 | — | — | — | 108 | ||||||||||||||||||||
PT. Mutiara Jawa | 4,959 | 29.00 | % | 1,438 | — | — | — | 1,438 | ||||||||||||||||||||
Samcheok Eco Materials Co., Ltd. | 23,416 | 25.54 | % | 5,980 | — | — | (5,980 | ) | — | |||||||||||||||||||
Noeul Green Energy Co., Ltd. | 22,792 | 29.00 | % | 6,610 | — | — | — | 6,610 | ||||||||||||||||||||
Naepo Green Energy Co., Ltd. | (22,275 | ) | 41.67 | % | (9,281 | ) | 2 | — | 9,279 | — | ||||||||||||||||||
Goseong Green Energy Co., Ltd. | 221,848 | 1.12 | % | 2,474 | — | (134 | ) | — | 2,340 | |||||||||||||||||||
Gangneung Eco Power Co., Ltd. | 158,490 | 1.61 | % | 2,553 | — | (123 | ) | — | 2,430 | |||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 174,280 | 40.00 | % | 69,712 | 12,800 | (15,556 | ) | — | 66,956 | |||||||||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 761 | 28.00 | % | 213 | — | — | 2 | 215 | ||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 267,746 | 34.01 | % | 91,060 | 1,757 | (3,688 | ) | (12,582 | ) | 76,547 | ||||||||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | 50,871 | 5.16 | % | 2,625 | — | — | (2,625 | ) | — | |||||||||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 4,731 | 49.90 | % | 2,361 | — | — | — | 2,361 | ||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 752,891 | 34.00 | % | 255,983 | — | — | — | 255,983 | ||||||||||||||||||||
Daegu Photovoltaic Co., Ltd. | 7,101 | 29.00 | % | 2,060 | — | — | — | 2,060 | ||||||||||||||||||||
Busan Green Energy Co., Ltd. | 36,680 | 29.00 | % | 10,637 | — | — | — | 10,637 | ||||||||||||||||||||
Gunsan Bio Energy Co., Ltd. | (17,448 | ) | 18.87 | % | (3,292 | ) | — | — | 3,292 | — | ||||||||||||||||||
Korea Electric Vehicle Charging Service | 3,797 | 28.00 | % | 1,063 | — | — | — | 1,063 | ||||||||||||||||||||
Korea Nuclear Partners Co., Ltd. | 553 | 29.00 | % | 160 | — | — | (160 | ) | — | |||||||||||||||||||
Korea Electric Power Corporation Fund | 41,923 | 98.09 | % | 41,122 | — | — | 4 | 41,126 | ||||||||||||||||||||
Energy Infra Asset Management Co., Ltd. | 7,991 | 9.90 | % | 791 | — | — | — | 791 | ||||||||||||||||||||
Daegu clean Energy Co., Ltd. | 48 | 28.00 | % | 13 | — | — | — | 13 | ||||||||||||||||||||
YaksuESS Co., Ltd | 1,774 | 29.00 | % | 514 | 2 | — | — | 516 | ||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 51,526 | 58.59 | % | 30,173 | 972 | — | — | 31,145 | ||||||||||||||||||||
Gwangyang Green Energy Co., Ltd. | 4,652 | 20.00 | % | 930 | 18 | — | — | 948 | ||||||||||||||||||||
PND solar., Ltd | 3,415 | 29.00 | % | 990 | 154 | — | — | 1,144 | ||||||||||||||||||||
Hyundai Eco Energy Co., Ltd. | 18,773 | 19.00 | % | 3,567 | 214 | — | — | 3,781 | ||||||||||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | 894 | 9.63 | % | 86 | 300 | — | — | 386 | ||||||||||||||||||||
Green Energy Electricity Generation Co., Ltd. | (2,123 | ) | 29.00 | % | (616 | ) | 779 | — | — | 163 | ||||||||||||||||||
Korea Energy Solutions Co., Ltd. | 1,267 | 20.00 | % | 253 | 6 | — | — | 259 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
ITR Co., Ltd. | 20.00 | % | 32 | 1 | — | — | 33 | |||||||||||||||||||||
Structure test network Co., Ltd. | (160 | ) | 20.00 | % | (32 | ) | 53 | — | — | 21 | ||||||||||||||||||
Namjeongsusang Solar Power Operation Co., Ltd. | 5,285 | 15.00 | % | 793 | 19 | — | — | 812 | ||||||||||||||||||||
Indeck Niles Development, LLC | 49,291 | 50.00 | % | 24,646 | — | — | (24,646 | ) | — | |||||||||||||||||||
Indeck Niles Asset Management, LLC | 262 | 33.33 | % | 87 | — | — | — | 87 | ||||||||||||||||||||
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1 | 14,544 | 49.00 | % | 7,126 | — | — | — | 7,126 | ||||||||||||||||||||
Suwon New Power Co., Ltd. | 2,000 | 33.10 | % | 662 | — | — | 136 | 798 | ||||||||||||||||||||
KPGE Inc. | 984 | 29.00 | % | 285 | — | — | 2 | 287 | ||||||||||||||||||||
Gwangbaek Solar Power Investment Co., Ltd. | 10,401 | 19.00 | % | 1,976 | 78 | — | — | 2,054 | ||||||||||||||||||||
Goduk Clean Energy Co., Ltd. | 3,000 | 61.00 | % | 1,830 | — | — | — | 1,830 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
KEPCO-Uhde Inc. | 263 | 50.80 | % | 134 | — | — | — | 134 | ||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 37,384 | 49.00 | % | 18,318 | — | — | — | 18,318 | ||||||||||||||||||||
Shuweihat Asia Operation & Maintenance Company | 2,560 | 55.00 | % | 1,408 | — | — | — | 1,408 | ||||||||||||||||||||
Waterbury Lake Uranium L.P. | 61,544 | 33.41 | % | 20,562 | — | — | — | 20,562 | ||||||||||||||||||||
ASM-BG Investicii AD | 38,752 | 50.00 | % | 19,376 | — | — | — | 19,376 | ||||||||||||||||||||
RES Technology AD | 32,496 | 50.00 | % | 16,248 | — | — | — | 16,248 | ||||||||||||||||||||
KV Holdings, Inc. | 6,101 | 40.00 | % | 2,441 | — | — | — | 2,441 | ||||||||||||||||||||
KEPCO SPC Power Corporation | 285,631 | 75.20 | % | 214,794 | — | — | — | 214,794 | ||||||||||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 20,372 | 40.00 | % | 8,149 | — | — | — | 8,149 | ||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 463,269 | 40.00 | % | 185,307 | — | — | — | 185,307 | ||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 102,561 | 40.00 | % | 41,024 | — | — | — | 41,024 | ||||||||||||||||||||
Rabigh Electricity Company | 438,372 | 40.00 | % | 175,349 | — | (65,450 | ) | (803 | ) | 109,096 | ||||||||||||||||||
Rabigh Operation & Maintenance Company Limited | 17,198 | 40.00 | % | 6,879 | — | — | — | 6,879 | ||||||||||||||||||||
Jamaica Public Service Company Limited | 602,440 | 40.00 | % | 240,976 | (80,161 | ) | — | 92,792 | 253,607 | |||||||||||||||||||
KW Nuclear Components Co., Ltd. | 20,506 | 45.00 | % | 9,228 | — | — | (176 | ) | 9,052 | |||||||||||||||||||
Busan Shinho Solar Power Co., Ltd. | 20,181 | 25.00 | % | 5,045 | — | — | — | 5,045 | ||||||||||||||||||||
Global Trade Of Power System Co., Ltd. | 1,968 | 29.00 | % | 571 | — | — | — | 571 | ||||||||||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 9,941 | 29.00 | % | 2,883 | — | — | — | 2,883 | ||||||||||||||||||||
Amman Asia Electric Power Company | 320,274 | 60.00 | % | 192,164 | — | — | — | 192,164 | ||||||||||||||||||||
KAPES, Inc. | 21,238 | 51.00 | % | 10,832 | — | — | — | 10,832 | ||||||||||||||||||||
Honam Wind Power Co., Ltd. | 14,977 | 29.00 | % | 4,343 | 32 | — | — | 4,375 | ||||||||||||||||||||
Jeongam Wind Power Co., Ltd. | 11,093 | 40.00 | % | 4,437 | — | — | — | 4,437 | ||||||||||||||||||||
Korea Power Engineering Service Co., Ltd. | 16,902 | 29.00 | % | 4,902 | — | — | — | 4,902 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 117,448 | 29.90 | % | 35,117 | — | — | (245 | ) | 34,872 | |||||||||||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | 20,230 | 15.00 | % | 3,035 | 5 | — | — | 3,040 | ||||||||||||||||||||
Nghi Son 2 Power LLC | (205,650 | ) | 50.00 | % | (102,825 | ) | — | — | 102,825 | — | ||||||||||||||||||
Kelar S.A | 104,298 | 65.00 | % | 67,794 | 2,668 | — | — | 70,462 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 98,078 | 35.00 | % | 34,327 | — | — | — | 34,327 | ||||||||||||||||||||
Incheon New Power Co., Ltd. | 1,196 | 29.00 | % | 347 | — | — | (347 | ) | — | |||||||||||||||||||
Seokmun Energy Co., Ltd. | 59,799 | 29.00 | % | 17,342 | — | — | — | 17,342 | ||||||||||||||||||||
Daehan Wind Power PSC | 3,514 | 50.00 | % | 1,757 | — | — | — | 1,757 | ||||||||||||||||||||
Barakah One Company | (215,789 | ) | 18.00 | % | (38,842 | ) | — | (77,254 | ) | 116,096 | — | |||||||||||||||||
Nawah Energy Company | 1,582 | 18.00 | % | 285 | — | — | — | 285 | ||||||||||||||||||||
MOMENTUM | 1,659 | 33.33 | % | 553 | — | — | — | 553 | ||||||||||||||||||||
Daegu Green Power Co., Ltd. | 79,501 | 54.24 | % | 43,124 | 84 | — | (20,384 | ) | 22,824 | |||||||||||||||||||
Yeonggwang Wind Power Co., Ltd. | 37,249 | 46.00 | % | 17,135 | 492 | — | — | 17,627 | ||||||||||||||||||||
Chester Solar IV SpA | 1,364 | 45.00 | % | 614 | 58 | — | — | 672 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
Chester Solar V SpA | 45.00 | % | 23 | 123 | — | — | 146 | |||||||||||||||||||||
Diego de Almagro Solar SpA | 2,083 | 45.00 | % | 937 | 98 | — | — | 1,035 | ||||||||||||||||||||
South Jamaica Power Company Limited | 69,318 | 20.00 | % | 13,863 | — | — | — | 13,863 | ||||||||||||||||||||
Daesan Green Energy Co., Ltd. | 49,091 | 35.00 | % | 17,182 | — | — | — | 17,182 | ||||||||||||||||||||
RE Holiday Holdings LLC | 84,140 | 50.00 | % | 42,070 | — | — | — | 42,070 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 62,313 | 50.00 | % | 31,156 | — | — | — | 31,156 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 85,833 | 50.00 | % | 42,916 | — | — | — | 42,916 | ||||||||||||||||||||
RE Astoria 2 LandCo LLC | 11,205 | 50.00 | % | 5,602 | — | — | — | 5,602 | ||||||||||||||||||||
RE Barren Ridge LandCo LLC | 3,932 | 50.00 | % | 1,966 | — | — | — | 1,966 | ||||||||||||||||||||
Laurel SpA | 903 | 45.00 | % | 406 | 189 | — | — | 595 | ||||||||||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | 32,458 | 12.37 | % | 4,015 | 9 | — | — | 4,024 | ||||||||||||||||||||
Chile Solar JV SpA | 69,717 | 50.00 | % | 34,859 | — | — | — | 34,859 | ||||||||||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | 20,770 | 37.78 | % | 7,846 | — | — | — | 7,846 | ||||||||||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | 10,278 | 29.01 | % | 2,982 | 61 | — | — | 3,043 | ||||||||||||||||||||
Chester Solar I SpA | 2,017 | 45.00 | % | 908 | 249 | — | — | 1,157 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 50,621 | 38.00 | % | 19,236 | 29,694 | — | — | 48,930 | ||||||||||||||||||||
Saemangeum Solar Power Co., Ltd. | 10,470 | 81.00 | % | 8,481 | — | — | (157 | ) | 8,324 | |||||||||||||||||||
Chungsongmeon BongSan wind power Co., Ltd. | 3,387 | 29.00 | % | 982 | 1,782 | — | — | 2,764 | ||||||||||||||||||||
Jaeun Resident Wind Power Plant Co., Ltd | 7,579 | 29.00 | % | 2,198 | — | — | — | 2,198 | ||||||||||||||||||||
DE Energia SpA | 13,988 | 49.00 | % | 6,854 | — | — | 1,811 | 8,665 | ||||||||||||||||||||
Dangjin Eco Power Co., Ltd. | 74,471 | 34.00 | % | 25,320 | 341 | — | — | 25,661 | ||||||||||||||||||||
Haemodum Solar Co., Ltd. | 6,000 | 49.00 | % | 2,940 | — | — | — | 2,940 | ||||||||||||||||||||
Yangyang Wind Power Co., Ltd. | 10,764 | 99.54 | % | 10,714 | 86 | — | — | 10,800 | ||||||||||||||||||||
HORUS SOLAR, S.A. DE C.V. | 2,063 | 14.95 | % | 308 | 3,095 | — | — | 3,403 | ||||||||||||||||||||
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. | 963 | 14.95 | % | 144 | 528 | — | — | 672 | ||||||||||||||||||||
SUNMEX RENOVABLES, S.A. DE C.V. | 999 | 14.95 | % | 149 | 73 | — | — | 222 | ||||||||||||||||||||
Stavro Holding II AB | 28,128 | 20.00 | % | 5,625 | — | — | — | 5,625 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
104
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | 75,302 | 29.00 | % | 21,838 | — | — | — | 21,838 | ||||||||||||||||||||
YTN Co., Ltd. | 188,282 | 21.43 | % | 40,346 | — | (6 | ) | (2 | ) | 40,338 | ||||||||||||||||||
Cheongna Energy Co., Ltd. | 2,313 | 43.90 | % | 1,015 | 2,584 | (134 | ) | — | 3,465 | |||||||||||||||||||
Gangwon Wind Power Co., Ltd. | 87,809 | 15.00 | % | 13,171 | — | — | 49 | 13,220 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 438,482 | 29.00 | % | 127,160 | — | — | — | 127,160 | ||||||||||||||||||||
Korea Power Exchange | 251,802 | 100.00 | % | 251,802 | — | — | — | 251,802 | ||||||||||||||||||||
AMEC Partners Korea Ltd. | 1,099 | 19.00 | % | 209 | — | — | — | 209 | ||||||||||||||||||||
Hyundai Energy Co., Ltd. | (56,772 | ) | 46.30 | % | (26,285 | ) | — | (996 | ) | 27,281 | — | |||||||||||||||||
Ecollite Co., Ltd. | 1,632 | 36.10 | % | 589 | — | — | (589 | ) | — | |||||||||||||||||||
Taebaek Wind Power Co., Ltd. | 22,661 | 25.00 | % | 5,665 | — | — | — | 5,665 | ||||||||||||||||||||
Taeback Guinemi Wind Power Co., Ltd. | 10,276 | 25.00 | % | 2,569 | — | — | — | 2,569 | ||||||||||||||||||||
Pyeongchang Wind Power Co., Ltd. | 21,676 | 25.00 | % | 5,419 | — | — | — | 5,419 | ||||||||||||||||||||
Daeryun Power Co., Ltd. | 288,211 | 9.34 | % | 26,919 | — | — | (820 | ) | 26,099 | |||||||||||||||||||
Changjuk Wind Power Co., Ltd. | 26,954 | 30.00 | % | 8,086 | — | — | — | 8,086 | ||||||||||||||||||||
KNH Solar Co., Ltd. | 8,656 | 27.00 | % | 2,337 | — | — | — | 2,337 | ||||||||||||||||||||
SPC Power Corporation | 208,780 | 38.00 | % | 79,336 | — | — | (21,778 | ) | 57,558 | |||||||||||||||||||
Gemeng International Energy Co., Ltd. | 2,735,376 | 34.00 | % | 930,028 | — | — �� | (283,018 | ) | 647,010 | |||||||||||||||||||
PT. Cirebon Electric Power | 395,008 | 27.50 | % | 108,628 | — | — | — | 108,628 | ||||||||||||||||||||
KNOC Nigerian East Oil Co., Ltd. | (73,176 | ) | 14.63 | % | (10,706 | ) | — | — | 10,706 | — | ||||||||||||||||||
KNOC Nigerian West Oil Co., Ltd. | (67,226 | ) | 14.63 | % | (9,835 | ) | — | — | 9,835 | — | ||||||||||||||||||
PT Wampu Electric Power | 67,603 | 46.00 | % | 31,097 | — | — | — | 31,097 | ||||||||||||||||||||
PT. Bayan Resources TBK | 821,309 | 20.00 | % | 164,262 | 423,763 | — | (76,379 | ) | 511,646 | |||||||||||||||||||
S-Power Co., Ltd. | 237,332 | 49.00 | % | 116,293 | — | (1,727 | ) | — | 114,566 | |||||||||||||||||||
Pioneer Gas Power Limited | (5,068 | ) | 38.50 | % | (1,951 | ) | 22,278 | — | 68 | 20,395 | ||||||||||||||||||
Eurasia Energy Holdings | (448 | ) | 40.00 | % | (179 | ) | — | — | 179 | — | ||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 312,826 | 25.00 | % | 78,207 | 253 | (1,006 | ) | (289 | ) | 77,165 | ||||||||||||||||||
Hadong Mineral Fiber Co., Ltd. | (28 | ) | 8.33 | % | (2 | ) | — | — | 2 | — | ||||||||||||||||||
Green Biomass Co., Ltd. | 1,304 | 8.80 | % | 115 | — | — | — | 115 | ||||||||||||||||||||
PT. Mutiara Jawa | 1,259 | 29.00 | % | 365 | — | — | — | 365 | ||||||||||||||||||||
Samcheok Eco Materials Co., Ltd. | 21,470 | 2.35 | % | 505 | — | — | (505 | ) | — | |||||||||||||||||||
Noeul Green Energy Co., Ltd. | 27,637 | 29.00 | % | 8,015 | — | — | — | 8,015 | ||||||||||||||||||||
Naepo Green Energy Co., Ltd. | 17,004 | 41.67 | % | 7,085 | — | — | (7,085 | ) | — | |||||||||||||||||||
Goseong Green Energy Co., Ltd. | 232,247 | 1.12 | % | 2,590 | — | (131 | ) | — | 2,459 | |||||||||||||||||||
Gangneung Eco Power Co., Ltd. | 162,317 | 1.61 | % | 2,615 | — | (120 | ) | — | 2,495 | |||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 162,518 | 40.00 | % | 65,007 | 12,800 | (10,207 | ) | — | 67,600 | |||||||||||||||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | 715 | 28.00 | % | 200 | — | — | 2 | 202 | ||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 268,332 | 34.01 | % | 91,260 | 1,757 | (4,049 | ) | (12,582 | ) | 76,386 | ||||||||||||||||||
Jinbhuvish Power Generation Pvt. Ltd. | 50,119 | 5.16 | % | 2,586 | — | — | (2,586 | ) | — | |||||||||||||||||||
SE Green Energy Co., Ltd. | 7,048 | 47.76 | % | 3,366 | — | — | — | 3,366 | ||||||||||||||||||||
Daegu Photovoltaic Co., Ltd. | 6,905 | 29.00 | % | 2,002 | — | — | — | 2,002 | ||||||||||||||||||||
Jeongam Wind Power Co., Ltd. | 11,473 | 40.00 | % | 4,589 | — | — | — | 4,589 | ||||||||||||||||||||
Korea Power Engineering Service Co., Ltd. | 14,943 | 29.00 | % | 4,333 | — | — | — | 4,333 | ||||||||||||||||||||
Busan Green Energy Co., Ltd. | 43,232 | 29.00 | % | 12,537 | — | — | — | 12,537 | ||||||||||||||||||||
Gunsan Bio Energy Co., Ltd. | (11,670 | ) | 18.87 | % | (2,202 | ) | — | — | 2,202 | — | ||||||||||||||||||
Korea Electric Vehicle Charging Service | 5,691 | 28.00 | % | 1,593 | — | — | — | 1,593 | ||||||||||||||||||||
Ulleungdo Natural Energy Co., Ltd. | 15,509 | 29.85 | % | 4,629 | — | — | (1 | ) | 4,628 | |||||||||||||||||||
Korea Nuclear Partners Co., Ltd. | 603 | 29.00 | % | 175 | — | — | — | 175 | ||||||||||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 38,521 | 27.00 | % | 10,401 | — | — | — | 10,401 | ||||||||||||||||||||
Korea Electric Power Corporation Fund | 48,104 | 98.09 | % | 47,185 | — | — | 4 | 47,189 | ||||||||||||||||||||
Energy Infra Asset Management Co., Ltd. | 6,718 | 9.90 | % | 665 | — | — | — | 665 | ||||||||||||||||||||
Daegu clean Energy Co., Ltd. | 61 | 28.00 | % | 17 | — | — | — | 17 | ||||||||||||||||||||
YaksuESS Co., Ltd | 1,581 | 29.00 | % | 458 | — | — | 2 | 460 |
105
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 57.67 | % | 29,529 | 972 | — | 460 | 30,961 | |||||||||||||||||||||
Gwangyang Green Energy Co., Ltd. | 5,941 | 20.00 | % | 1,188 | 18 | — | — | 1,206 | ||||||||||||||||||||
PND solar., Ltd | 2,986 | 29.00 | % | 866 | 154 | — | — | 1,020 | ||||||||||||||||||||
Hyundai Eco Energy Co., Ltd. | 16,703 | 19.00 | % | 3,174 | 214 | — | — | 3,388 | ||||||||||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | 2,421 | 9.63 | % | 233 | 300 | — | — | 533 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
KEPCO-Uhde Inc. | 369 | 50.85 | % | 188 | — | — | — | 188 | ||||||||||||||||||||
Eco Biomass Energy Sdn. Bhd. | — | 61.53 | % | — | — | — | — | — | ||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 55,614 | 49.00 | % | 27,251 | — | — | — | 27,251 | ||||||||||||||||||||
Shuweihat Asia Operation & Maintenance Company | 1,441 | 55.00 | % | 793 | — | — | (1 | ) | 792 | |||||||||||||||||||
Waterbury Lake Uranium L.P. | 55,869 | 34.07 | % | 19,032 | — | — | — | 19,032 | ||||||||||||||||||||
ASM-BG Investicii AD | 42,758 | 50.00 | % | 21,379 | — | — | — | 21,379 | ||||||||||||||||||||
RES Technology AD | 30,417 | 50.00 | % | 15,209 | — | — | — | 15,209 | ||||||||||||||||||||
KV Holdings, Inc. | 4,795 | 40.00 | % | 1,918 | — | — | — | 1,918 | ||||||||||||||||||||
KEPCO SPC Power Corporation | 277,002 | 75.20 | % | 208,306 | — | — | — | 208,306 | ||||||||||||||||||||
Gansu Datang Yumen Wind Power Co., Ltd. | 24,952 | 40.00 | % | 9,981 | — | — | — | 9,981 | ||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 415,527 | 40.00 | % | 166,211 | — | — | (49 | ) | 166,162 | |||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 98,604 | 40.00 | % | 39,442 | — | — | — | 39,442 | ||||||||||||||||||||
Rabigh Electricity Company | 445,640 | 40.00 | % | 178,256 | — | (70,977 | ) | (1,951 | ) | 105,328 | ||||||||||||||||||
Rabigh Operation & Maintenance Company Limited | 14,585 | 40.00 | % | 5,834 | — | — | — | 5,834 | ||||||||||||||||||||
Jamaica Public Service Company Limited | 568,584 | 40.00 | % | 227,434 | (80,161 | ) | — | 92,359 | 239,632 | |||||||||||||||||||
KW Nuclear Components Co., Ltd. | 17,521 | 45.00 | % | 7,884 | — | — | (176 | ) | 7,708 | |||||||||||||||||||
Busan Shinho Solar Power Co., Ltd. | 19,044 | 25.00 | % | 4,761 | — | — | — | 4,761 | ||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 707,620 | 34.00 | % | 240,591 | — | — | — | 240,591 | ||||||||||||||||||||
Global Trade Of Power System Co., Ltd. | 1,776 | 29.00 | % | 515 | — | — | — | 515 | ||||||||||||||||||||
Expressway Solar-light Power Generation Co., Ltd. | 9,228 | 29.00 | % | 2,676 | — | — | — | 2,676 | ||||||||||||||||||||
Daejung Offshore Wind Power Co., Ltd. | 5,349 | 49.90 | % | 2,669 | — | — | — | 2,669 | ||||||||||||||||||||
Amman Asia Electric Power Company | 295,741 | 60.00 | % | 177,445 | — | — | (88 | ) | 177,357 | |||||||||||||||||||
KAPES, Inc. | 17,803 | 51.00 | % | 9,079 | — | — | — | 9,079 | ||||||||||||||||||||
Dangjin Eco Power Co., Ltd. | 50,865 | 34.00 | % | 17,294 | 2,618 | — | — | 19,912 | ||||||||||||||||||||
Honam Wind Power Co., Ltd. | 16,647 | 29.00 | % | 4,828 | 32 | — | — | 4,860 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 142,146 | 29.90 | % | 42,502 | 3 | — | — | 42,505 | ||||||||||||||||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | 18,918 | 15.00 | % | 2,837 | 6 | — | — | 2,843 | ||||||||||||||||||||
Nghi Son 2 Power LLC | (83,319 | ) | 50.00 | % | (41,660 | ) | — | — | 41,660 | — | ||||||||||||||||||
Kelar S.A | 108,071 | 65.00 | % | 70,246 | 2,470 | — | 108 | 72,824 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 20,230 | 35.00 | % | 7,081 | — | — | — | 7,081 | ||||||||||||||||||||
Incheon New Power Co., Ltd. | 1,996 | 29.00 | % | 579 | — | — | — | 579 | ||||||||||||||||||||
Seokmun Energy Co., Ltd. | 57,762 | 29.00 | % | 16,751 | — | — | — | 16,751 | ||||||||||||||||||||
Daehan Wind Power PSC | 3,264 | 50.00 | % | 1,632 | — | — | — | 1,632 | ||||||||||||||||||||
Barakah One Company | 21,152 | 18.00 | % | 3,807 | — | — | — | 3,807 | ||||||||||||||||||||
Nawah Energy Company | 1,522 | 18.00 | % | 274 | — | — | — | 274 | ||||||||||||||||||||
MOMENTUM | 1,746 | 33.33 | % | 582 | — | — | — | 582 | ||||||||||||||||||||
Daegu Green Power Co., Ltd. | 67,291 | 29.00 | % | 19,514 | 84 | — | 21,512 | 41,110 | ||||||||||||||||||||
Yeonggwang Wind Power Co., Ltd. | 36,764 | 41.00 | % | 15,074 | 230 | — | — | 15,304 | ||||||||||||||||||||
Chester Solar IV SpA | 2,193 | 81.82 | % | 1,794 | 57 | — | — | 1,851 | ||||||||||||||||||||
Chester Solar V SpA | 435 | 81.82 | % | 356 | 118 | — | — | 474 | ||||||||||||||||||||
Diego de Almagro Solar SpA | 1,918 | 81.82 | % | 1,569 | 94 | — | — | 1,663 | ||||||||||||||||||||
South Jamaica Power Company Limited | 80,618 | 20.00 | % | 16,124 | — | — | — | 16,124 | ||||||||||||||||||||
Daesan Green Energy Co., Ltd. | 49,808 | 35.00 | % | 17,433 | — | — | — | 17,433 | ||||||||||||||||||||
RE Holiday Holdings LLC | 102,189 | 50.00 | % | 51,094 | — | — | — | 51,094 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 77,795 | 50.00 | % | 38,898 | — | — | — | 38,898 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 82,831 | 50.00 | % | 41,415 | — | — | — | 41,415 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
RE Astoria 2 LandCo LLC | 50.00 | % | 5,410 | — | — | — | 5,410 | |||||||||||||||||||||
RE Barren Ridge LandCo LLC | 3,797 | 50.00 | % | 1,898 | — | — | — | 1,898 | ||||||||||||||||||||
Laurel SpA | 903 | 81.82 | % | 739 | 182 | — | — | 921 | ||||||||||||||||||||
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd | 31,785 | 12.37 | % | 3,931 | 9 | — | — | 3,940 | ||||||||||||||||||||
Chile Solar JV SpA | 73,730 | 50.00 | % | 36,865 | — | — | — | 36,865 | ||||||||||||||||||||
Taebaek Gadeoksan Wind Power Co., Ltd. | 18,267 | 46.58 | % | 8,508 | — | — | — | 8,508 | ||||||||||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | 8,197 | 24.76 | % | 2,029 | 44 | — | — | 2,073 | ||||||||||||||||||||
Chester Solar I SpA | 1,150 | 81.82 | % | 940 | 241 | — | — | 1,181 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 70,431 | 38.00 | % | 26,764 | 21,139 | — | — | 47,903 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
17. | Investments in Associates and Joint Ventures, Continued |
(6) | As of December 31, 2019 and 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 | 2019 | 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 | 6 | 185 | 7 | 179 | ||||||||||||
Gunsan Bio Energy Co., Ltd. | 1,090 | 3,292 | 916 | 2,202 | ||||||||||||
Daehan Wind Power PSC | — | — | (412 | ) | — | |||||||||||
Hyundai Energy Co., Ltd. | 12,890 | 38,731 | 25,841 | 25,841 | ||||||||||||
Nghi Son 2 Power LLC | 61,165 | 102,824 | 41,659 | 41,659 | ||||||||||||
Samcheok Eco Materials Co., Ltd. | (497 | ) | 788 | 1,285 | 1,285 | |||||||||||
Naepo Green Energy Co., Ltd. | 9,281 | 9,281 | — | — | ||||||||||||
Barakah One Company | 116,096 | 116,096 | — | — | ||||||||||||
Pioneer Gas Power Limited | 114 | 114 | — | — |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(7) | As of December 31, 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 (NPS Co-Pa PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Group provided a performance guarantee on this agreement.
(ii) | 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 where non-controlling shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.
(iv) | Pyeongchang Wind Power Co., Ltd. |
In the case where non-controlling shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation.
(v) | Jeongam Wind Power Co., Ltd. |
In the case where non-controlling shareholders decide to dispose of their shares in Jeongam Wind Power Co., Ltd. after the construction of the power plant has been completed, the Group is obligated to acquire those shares at fair value.
(vi) | Daegu Green Power Co., Ltd. |
The Group has a right to purchase all the shares of Daegu Green Power Co., Ltd. held by the financial investores at the yield-based transfer amount agreed with the shareholders.The Group can exercise its right 5, 10 and 13 years after the date of the investment.
The Group has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.
(vii) | Taebaek Guinemi Wind Power Co., Ltd. |
At the commencement of the operation of the faciliity, the Group has a right to purchase all or part of the shares from the shareholders at fair value.
(viii) | Hyundai Green Power Co., Ltd. |
As of December 31, 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 of W919.2 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.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(7) | As of December 31, 2019, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued: |
(ix) | YeongGwang Yaksu Wind Electric. Co., Ltd. |
As of December 31, 2019, YeongGwang Yaksu Wind Electric. Co., Ltd., an associate of the Group, which engages in the wind power generating business in YeongGwang, Jeonra-namdo, and entered into a project financing agreement with a limit ofW46 billion with Hanhwa Life Insurance Co., Ltd. and others. The Group set the shares of YeongGwang Yaksu Wind Electric. Co., Ltd. as a collateral for the the project financing to the lenders.
(x) | Yeonggwang Wind Power Co., Ltd. |
In case the Group intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is a non-controlling shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Group.
(xi) | Chester Solar I SpA |
According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.
(xii) | Chester Solar IV SpA |
According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.
(xiii) | Chester Solar V SpA |
According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
(xiv) | Diego de Almagro Solar SpA |
According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise.According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.
(xv) | Laurel SpA |
According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
17. | Investments in Associates and Joint Ventures, Continued |
(8) | Significant restrictions on the Group’s abilities on associates or joint ventures as of December 31, 2019 are as follows: |
Company | Nature and extent of any significant restrictions | |
Daegu Green Power Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions 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. 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. | |
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. Shares cannot be wholly or partially transferred without prior written consent of financial institutions is obtained. | |
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 and Shares cannot be wholly or partially transferred without consent of the majority of lenders is obtained. | |
KNH Solar Co., Ltd. | Principal and interest, dividends to shareholders cannot be paid without written consent of financial institutions. Also, Shares cannot be wholly or partially transferred without consent of other shareholders is obtained. | |
Jeongam Wind Power Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied and reimbursement to the lender can be restricted depending on the priority of the loans. Also, Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Korea Power Engineering Service Co., Ltd. | Shares cannot be wholly or partially transferred without consent of the board of directors is obtained. | |
Daehan Wind Power PSC | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Daejung Offshore Wind Power Co., Ltd. | Before the commencement of the operation, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Naepo Green Energy Co., Ltd. | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Samcheok Eco Materials Co., Ltd. | Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
KPGE Inc. | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Taebaek Guinemi Wind Power Co., Ltd. | Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Indeck Niles Asset Management, LLC | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Indeck Niles Development, LLC | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Chester Solar IV SpA | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Chester Solar V SpA | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Diego de Almagro Solar Spa | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Laurel SpA | Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Kelar S.A. | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
18. | Property, Plant and Equipment |
(1) | Property, plant and equipment as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Accumulated impairment losses | Book value | ||||||||||||||||
Land | (21,817 | ) | — | — | 13,826,246 | |||||||||||||||
Buildings | 20,756,351 | (61,920 | ) | (8,305,683 | ) | (4,962 | ) | 12,383,786 | ||||||||||||
Structures | 70,900,343 | (186,554 | ) | (25,711,840 | ) | (9,633 | ) | 44,992,316 | ||||||||||||
Machinery | 89,224,339 | (158,907 | ) | (38,865,392 | ) | (451,647 | ) | 49,748,393 | ||||||||||||
Ships | 3,104 | — | (2,903 | ) | — | 201 | ||||||||||||||
Vehicles | 309,829 | (2,275 | ) | (239,128 | ) | (116 | ) | 68,310 | ||||||||||||
Equipment | 1,716,210 | (241 | ) | (1,342,053 | ) | (42 | ) | 373,874 | ||||||||||||
Tools | 1,098,127 | (403 | ) | (934,023 | ) | (40 | ) | 163,661 | ||||||||||||
Construction-in-progress | 28,584,806 | (61,211 | ) | — | (165,336 | ) | 28,358,259 | |||||||||||||
Right-of-use assets | 7,574,010 | — | (2,790,437 | ) | — | 4,783,573 | ||||||||||||||
Asset retirement costs | 11,690,188 | — | (4,169,238 | ) | (146,423 | ) | 7,374,527 | |||||||||||||
Others | 12,955,782 | — | (10,327,101 | ) | — | 2,628,681 | ||||||||||||||
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(493,328 | ) | (92,687,798 | ) | (778,199 | ) | 164,701,827 | ||||||||||||||
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In millions of won | 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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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
18. | Property, Plant and Equipment, Continued |
(2) | Changes in property, plant and equipment for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisition | Disposal | Depreciation | Impairment (*1,*4) | Others (*2,*3) | Ending balance | |||||||||||||||||||||||||
Land | — | 40,752 | (29,205 | ) | — | (25,626 | ) | 307,850 | 13,848,063 | |||||||||||||||||||||||
(Government grants) | (21,968 | ) | — | — | 151 | — | — | — | (21,817 | ) | ||||||||||||||||||||||
Buildings | 11,933,691 | — | 3,195 | (23,409 | ) | (821,680 | ) | (1,293 | ) | 1,355,202 | 12,445,706 | |||||||||||||||||||||
(Government grants) | (63,189 | ) | — | (592 | ) | — | 6,214 | — | (4,353 | ) | (61,920 | ) | ||||||||||||||||||||
Structures | 42,711,795 | — | 1,663 | (470,230 | ) | (2,399,283 | ) | (1,234 | ) | 5,336,159 | 45,178,870 | |||||||||||||||||||||
(Government grants) | (190,854 | ) | — | — | 2,405 | 9,373 | — | (7,478 | ) | (186,554 | ) | |||||||||||||||||||||
Machinery | 47,456,595 | — | 326,606 | (248,951 | ) | (5,452,669 | ) | (12,247 | ) | 7,837,966 | 49,907,300 | |||||||||||||||||||||
(Government grants) | (173,242 | ) | — | (1,050 | ) | 635 | 17,993 | — | (3,243 | ) | (158,907 | ) | ||||||||||||||||||||
Ships | 302 | — | — | — | (100 | ) | — | (1 | ) | 201 | ||||||||||||||||||||||
Vehicles | 72,189 | — | 3,789 | 4,558 | (33,650 | ) | — | 23,699 | 70,585 | |||||||||||||||||||||||
(Government grants) | (4,220 | ) | — | (228 | ) | 5 | 2,170 | — | (2 | ) | (2,275 | ) | ||||||||||||||||||||
Equipment | 382,859 | — | 47,532 | (162 | ) | (199,376 | ) | (227 | ) | 143,489 | 374,115 | |||||||||||||||||||||
(Government grants) | (418 | ) | — | (81 | ) | — | 262 | — | (4 | ) | (241 | ) | ||||||||||||||||||||
Tools | 192,675 | — | 20,956 | (31 | ) | (87,708 | ) | — | 38,172 | 164,064 | ||||||||||||||||||||||
(Government grants) | (675 | ) | — | — | — | 281 | — | (9 | ) | (403 | ) | |||||||||||||||||||||
Construction-in-progress | 28,821,167 | — | 13,544,091 | (199,853 | ) | — | (8,828 | ) | (13,737,107 | ) | 28,419,470 | |||||||||||||||||||||
(Government grants) | (54,740 | ) | — | 12,338 | — | — | — | (18,809 | ) | (61,211 | ) | |||||||||||||||||||||
Finance lease assets | 195,730 | (195,730 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
(Government grants) | (26 | ) | 26 | — | — | — | — | — | — | |||||||||||||||||||||||
Right-of-use assets | — | 5,143,651 | 220,996 | �� | — | (581,074 | ) | — | — | 4,783,573 | ||||||||||||||||||||||
Asset retirement costs | 5,571,754 | — | — | — | (626,856 | ) | — | 2,429,629 | 7,374,527 | |||||||||||||||||||||||
Others | 2,359,477 | — | 1,388 | (221 | ) | (800,653 | ) | (581 | ) | 1,069,271 | 2,628,681 | |||||||||||||||||||||
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4,947,947 | 14,221,355 | (964,308 | ) | (10,966,756 | ) | (50,036 | ) | 4,770,431 | 164,701,827 | |||||||||||||||||||||||
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(*1) | KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiary, performed an impairment test over its land and others. The Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss. |
(*2) | ‘Others’ include the amounts of assets acquired by the business combination. (see Note 51) |
(*3) | ‘Others’ include the amounts which have been reclassed from Construction-in-progress to the other assets in the current period to reflect assets that had finished construction in the prior periods as it was deemed not material. |
(*4) | As described in Note 2, the Group recognized impairment loss of |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
18. | Property, Plant and Equipment, Continued |
(2) | Changes in property, plant and equipment for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 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 26, the amount of acquisition of machinery includes W204,787 million of that the Group believes 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. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
19. | Investment Properties |
(1) | Investment properties as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | — | 129,897 | |||||||||||||
Buildings | 64,590 | (13 | ) | (35,894 | ) | 28,683 | ||||||||||
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(13 | ) | (35,894 | ) | 158,580 | ||||||||||||
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In millions of won | 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 years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Beginning balance | Depreciation | Others (*) | Ending balance | |||||||||||||
Land | — | (10,043 | ) | 129,897 | ||||||||||||
Buildings | 19,669 | (5,070 | ) | 14,097 | 28,696 | |||||||||||
(Government grants) | (50 | ) | 1 | 36 | (13 | ) | ||||||||||
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(5,069 | ) | 4,090 | 158,580 | |||||||||||||
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In millions of won | 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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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
19. | Investment Properties, Continued |
(3) | Income and expenses related to investment properties for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Rental income | 9,494 | |||||||
Operating and maintenance expenses related to rental income | (1,257 | ) | (923 | ) | ||||
Operating and maintenance expenses not related to rental income | (3,812 | ) | — | |||||
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8,571 | ||||||||
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(4) | Fair value of investment properties as of December 31, 2018 and 2019 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Book value | Fair value | Book value | Fair value | |||||||||||||
Land | 202,042 | 139,940 | 167,178 | |||||||||||||
Buildings | 28,683 | 38,046 | 19,619 | 23,276 | ||||||||||||
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240,088 | 159,559 | 190,454 | ||||||||||||||
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The Group determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Group. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined by considering fluctuations in 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. |
20. | Construction Contracts |
(1) | Changes in major contract amount in which revenue is not yet recognized for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||
Beginning balance | Increase (decrease) (*) | Recognized as revenue | Ending balance | |||||||||||||
Nuclear power plant construction in UAE and others | 379,269 | (1,264,916 | ) | 2,735,141 |
(*) | For the year ended December 31, 2019, the increased balance of contracts from new orders and foreign exchange impact is |
In millions of won | 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 Financial Statements, Continued
December 31, 2019
20. | Construction Contracts, Continued |
(2) | Accumulated earned revenue, costs and others related to the Group’s construction contracts as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||
Accumulated earned revenue | Accumulated costs | Accumulated profit | ||||||||||
Nuclear power plant construction in UAE and others | 19,566,647 | 1,404,840 |
In millions of won | 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 December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Assets (*1) | Liabilities (*2) | Assets (*1) | Liabilities (*2) | |||||||||||||
Nuclear power plant construction in UAE and others | 73,420 | 36,232 | 350,460 |
(*1) | Included in trade and other receivables, net, in the consolidated statements of financial position. |
(*2) | Included in non-financial liabilities in the consolidated statements of financial position. |
(4) | The contract with BOC (purchaser) states that disclosure of information related to UAE nuclear power plant construction projects such as contract date, contractual completion date, completion progress, unbilled construction, impairment losses, etc. are not allowed without consent from the purchaser. BOC did not agree to disclose such information. Accordingly, the Group did not disclose such information based on KIFRS 1115 129.2(2) as it is probable that BOC may file a lawsuit for breach of contract if the Group does so. Also, the Group reported to the audit committee that those items will not be disclosed in the notes to the consolidated financial statements. |
(5) | Changes in estimates of contract revenues and costs related to the Group’s construction services for the year ended December 31, 2019 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||||||||||
Assets from construction contracts | 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 | 195,079 | 184,053 | 11,026 | 35,676 | — | — | — | — | ||||||||||||||||||||||||||||
Plant maintenance & engineering service | 1,100 | (9,097 | ) | (8,941 | ) | (156 | ) | 18,151 | — | 46,489 | 13,335 | 2,873 | ||||||||||||||||||||||||
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185,982 | 175,112 | 10,870 | 53,827 | — | 46,489 | 13,335 | 2,873 | |||||||||||||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
21. | Intangible Assets other than Goodwill |
(1) | Intangible assets as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated amortization | Accumulated impairment losses | Book value | ||||||||||||||||
Software | (235 | ) | (542,736 | ) | — | 164,760 | ||||||||||||||
Licenses and franchises | 3,398 | — | (3,398 | ) | — | — | ||||||||||||||
Copyrights, patents rights and other industrial rights | 102,828 | — | (40,389 | ) | (9,178 | ) | 53,261 | |||||||||||||
Mining rights | 584,969 | — | (28,456 | ) | (512,790 | ) | 43,723 | |||||||||||||
Development expenditures | 916,834 | (1,492 | ) | (822,972 | ) | (19 | ) | 92,351 | ||||||||||||
Intangible assets under development | 73,335 | (11,029 | ) | — | (12,845 | ) | 49,461 | |||||||||||||
Usage rights of donated assets and others | 582,825 | — | (389,664 | ) | — | 193,161 | ||||||||||||||
Leasehold rights | 25,989 | — | (20,671 | ) | — | 5,318 | ||||||||||||||
Greenhouse gas emissions rights | 41,656 | — | — | — | 41,656 | |||||||||||||||
Others | 557,749 | (79 | ) | (119,446 | ) | (11,939 | ) | 426,285 | ||||||||||||
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(12,835 | ) | (1,967,732 | ) | (546,771 | ) | 1,069,976 | ||||||||||||||
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In millions of won | 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 Financial Statements, Continued
December 31, 2019
21. | Intangible Assets other than Goodwill, Continued |
(2) | Changes in intangible assets for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposals | Amortization | Impairment (*1) | Others (*2) | Ending balance | ||||||||||||||||||||||
Software | 42,694 | (774 | ) | (81,883 | ) | — | 47,277 | 164,995 | ||||||||||||||||||||
(Government grants) | (420 | ) | — | — | 202 | — | (17 | ) | (235 | ) | ||||||||||||||||||
Copyrights, patents rights and other industrial rights | 67,112 | 171 | (325 | ) | (9,196 | ) | — | (4,501 | ) | 53,261 | ||||||||||||||||||
Mining rights | 534,524 | 8,742 | — | (7,186 | ) | (513,519 | ) | 21,162 | 43,723 | |||||||||||||||||||
Development expenditures | 92,486 | 687 | — | (28,901 | ) | (68 | ) | 29,639 | 93,843 | |||||||||||||||||||
(Government grants) | (2,110 | ) | — | — | 833 | — | (215 | ) | (1,492 | ) | ||||||||||||||||||
Intangible assets under development | 70,536 | 56,082 | — | — | — | (66,128 | ) | 60,490 | ||||||||||||||||||||
(Government grants) | (10,564 | ) | — | — | — | — | (465 | ) | (11,029 | ) | ||||||||||||||||||
Usage rights of donated assets and others | 87,011 | — | — | (15,632 | ) | — | 121,782 | 193,161 | ||||||||||||||||||||
(Government grants) | — | — | — | — | — | — | — | |||||||||||||||||||||
Leasehold rights | 5,552 | — | — | (741 | ) | — | 507 | 5,318 | ||||||||||||||||||||
Greenhouse gas emissions rights | 7,050 | 118,743 | (7,058 | ) | — | — | (77,079 | ) | 41,656 | |||||||||||||||||||
Others | 217,084 | 2,307 | (164 | ) | (14,413 | ) | (22 | ) | 221,572 | 426,364 | ||||||||||||||||||
(Government grants) | — | — | — | 2 | — | (81 | ) | (79 | ) | |||||||||||||||||||
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229,426 | (8,321 | ) | (156,915 | ) | (513,609 | ) | 293,453 | 1,069,976 | ||||||||||||||||||||
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(*1) | 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. |
(*2) | ‘Others’ include the business rights amounting to |
In millions of won | 2018 | |||||||||||||||||||||||||||
Beginning balance | Acquisition | Disposals | 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 Financial Statements, Continued
December 31, 2019
21. | Intangible Assets other than Goodwill, Continued |
(3) | Significant specific intangible assets as of December 31, 2019 and 2018 are as follows: |
In millions of won and thousands of Australian dollars | ||||||||||||
2019 | ||||||||||||
Type | Description | Currency | Amount | Remaining useful lives | ||||||||
Software | ERP system and others | KRW | 432 | 1 year and 2 months ~ 1 year and 4 months | ||||||||
Electricity sales information system | KRW | 4,824 | 3 years | |||||||||
Copyrights, patents rights and other industrial rights | Smart technology verification and standard design project conducting right | KRW | 6,787 | 2 years and 9 months | ||||||||
Contributions to ARP NRC DC | KRW | 34,755 | 8 years | |||||||||
Mining rights | Mining right of Bylong mine | AUD | — | - (*) | ||||||||
Development expenditures | Electricity sales information system | KRW | 15,283 | 2 years and 3 months | ||||||||
Usage rights of donated assets and others | Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right | | KRW KRW |
| | 31,385 7,870 |
| 6 years and 11 months 1 year and 3 month | ||||
Others | Occupancy and use of public waters | KRW | 92,446 | 17 years and 1 months | ||||||||
Business rights | KRW | 171,955 | 29 years and 11 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 year ended December 31, 2019. |
In millions of won and thousands of Australian dollars | ||||||||||||
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 Dangjin power plant load facility usage right | | KRW KRW |
| | 35,923 14,167 | | 7 years and 11 months 2 years and 3 months | ||||
Others | Occupancy and use of public waters | KRW | 97,858 | 18 years and 1 month |
(*) | Mining rights are amortized using the units-of-production method and the amortization has not commenced yet. |
(4) | For the years ended December 31, 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 Financial Statements, Continued
December 31, 2019
22. Trade and Other Payables
Trade and other payables as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Trade payables | — | 3,411,830 | — | |||||||||||||
Other trade payables | 1,952,659 | 2,446,714 | 1,630,860 | 2,626,876 | ||||||||||||
Accrued expenses | 1,028,869 | 2,033 | 1,127,796 | 1,859 | ||||||||||||
Leasehold deposits received | 2,571 | 709 | 1,949 | 1,084 | ||||||||||||
Other deposits received | 163,382 | 68,702 | 169,317 | 72,453 | ||||||||||||
Lease liabilities | 635,349 | 4,434,784 | — | — | ||||||||||||
Finance lease liabilities | — | — | 57,200 | 226,606 | ||||||||||||
Dividends payable | 6,851 | — | 6,443 | — | ||||||||||||
Others (*) | — | 12,818 | — | 12,818 | ||||||||||||
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| |||||||||
6,965,760 | 6,405,395 | 2,941,696 | ||||||||||||||
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|
(*) | Details of others as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 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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23. | Borrowings and Debt Securities |
(1) | Borrowings and debt securities as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 860,602 | |||||||
Current portion of long-term borrowings | 217,579 | 312,994 | ||||||
Current portion of debt securities | 7,545,485 | 6,790,778 | ||||||
Less : Current portion of discount on long-term borrowings | (1,000 | ) | (972 | ) | ||||
Less : Current portion of discount on debt securities | (2,780 | ) | (1,974 | ) | ||||
Add : Current portion of premium on debt securities | — | 20 | ||||||
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|
| |||||
8,857,839 | 7,961,448 | |||||||
|
|
|
| |||||
Non-current liabilities | ||||||||
Long-term borrowings | 3,411,052 | 3,280,015 | ||||||
Debt securities | 55,716,183 | 49,905,077 | ||||||
Less : Discount on long-term borrowings | (21,309 | ) | (22,000 | ) | ||||
Less : Discount on debt securities | (88,920 | ) | (89,913 | ) | ||||
Add : Premium on debt securities | 1,696 | — | ||||||
|
|
|
| |||||
59,018,702 | 53,073,179 | |||||||
|
|
|
| |||||
61,034,627 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(2) | Repayment schedule of borrowings and debt securities as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||
2019 | ||||||||
Type | Borrowings | Debt securities | ||||||
Less than 1 year | 7,545,485 | |||||||
1~ 5 years | 2,113,404 | 31,552,963 | ||||||
Over 5 years | 1,297,648 | 24,163,220 | ||||||
|
|
|
| |||||
63,261,668 | ||||||||
|
|
|
|
In millions of won | ||||||||
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 | ||||||
|
|
|
| |||||
56,695,855 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(3) | Short-term borrowings as of December 31, 2019 and 2018 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
2019 | ||||||||||||||||||
Type | Creditor | Interest rate (%) | Maturity | Foreign currency | Local currency | |||||||||||||
Local short-term borrowings | DB financial investment | 2.00~2.20 | 2020.01.13~2020.02.05 | — | ||||||||||||||
Foreign short-term borrowings | LG-CNS | 4.60 | 2020.06.30 | USD 23,699 | 27,439 | |||||||||||||
Foreign short-term borrowings | BDO Unibank | 3.92 | 2020.12.20 | PHP 225,000 | 5,130 | |||||||||||||
Foreign short-term borrowings | Mizuho Bank | 4.60 | 2020.06.30 | USD 11,027 | 12,767 | |||||||||||||
Electronic short-term bonds | Mirae asset daewoo and others | 1.72~2.20 | 2020.01.10~2020.02.05 | — | 400,000 | |||||||||||||
Local bank overdraft | Korea development Bank and others | 1.98~2.75 | 2020.01.01~2020.04.16 | — | 373,219 | |||||||||||||
|
| |||||||||||||||||
|
|
In millions of won and thousands of foreign currencies | ||||||||||||||||||
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 | |||||||||||||
|
| |||||||||||||||||
|
|
(*) | The contractual maturity is 2020 but is classified as short-term borrowing due to intention of early payment in 3 months after borrowing. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of December 31, 2019 and 2018 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
2019 | ||||||||||||||||||
Type | Interest rate (%) | Maturity | Foreign currency | Local currency | ||||||||||||||
Local long-term borrowings | ||||||||||||||||||
Korea Development Bank | Others | 0.50 | 2020~2044 | — | ||||||||||||||
Facility | 2.50~4.60 | 2023~2028 | — | 59,845 | ||||||||||||||
Operating funds | 2.33~3.04 | 2020~2022 | — | 55,000 | ||||||||||||||
Operating funds | | 1yr KoFC bond rate +0.95 |
| 2020~2022 | — | 24,000 | ||||||||||||
Hana Bank | Commercial Paper | 3M CD+0.13~0.32 | 2021~2024 | — | 1,150,000 | |||||||||||||
Facility | 4.60 | 2028 | — | 12,466 | ||||||||||||||
Facility | 3yr KTB rate-1.25 | 2020~2028 | — | 6,699 | ||||||||||||||
IBK | PF Refinancing | CD+1.25 | 2030 | — | 10,497 | |||||||||||||
Export-Import Bank of Korea | Project loans | 1.50 | 2026 | — | 19,150 | |||||||||||||
Operating funds | 2.21 | 2020 | — | 35,000 | ||||||||||||||
Korea Energy Agency | Development of power resources | 3yr KTB rate-2.25 | 2023~2025 | — | 4,350 | |||||||||||||
Facility | 3yr KTB rate-2.25 | 2020~2024 | — | 2,058 | ||||||||||||||
Project loans | — | 2023 | — | 1,197 | ||||||||||||||
Others | KTB rate-2.25 | 2024~2028 | — | 15,696 | ||||||||||||||
Shinhan Bank | Facility | CB rate+1.10 | 2028 | — | 18,698 | |||||||||||||
Others | 3.95 | 2035 | — | 99,146 | ||||||||||||||
Others | | Standard overdraft rate+1.00 | | 2035 | — | 99,146 | ||||||||||||
Kookmin Bank | Facility | 3.16 | 2020 | — | 10,000 | |||||||||||||
Facility | MOR+0.79 | 2023 | — | 23,333 | ||||||||||||||
Others | Facility | 1.75~6.80 | 2026~2036 | — | 390,044 | |||||||||||||
Facility | | CB rate+1.10~1.60 Standard overdraft | | 2023~2036 | — | 111,834 | ||||||||||||
PF Refinancing | 4.10 | 2030 | — | 29,159 | ||||||||||||||
Others | 4.50~7.90 | 2022~2039 | — | 102,348 | ||||||||||||||
|
| |||||||||||||||||
2,283,166 | ||||||||||||||||||
|
| |||||||||||||||||
Foreign long-term borrowings | ||||||||||||||||||
Korea Energy Agency | Project loans | — | 2021~2023 | USD | 8,744 | 10,123 | ||||||||||||
Export-Import Bank of Korea and others | Direct loan and others | 1M Libor+1.80~3.20 | 2036 | USD | 101,912 | 117,994 | ||||||||||||
Direct loan and others | 3M Libor+2.75~3.70 | 2027 | JOD | 146,380 | 239,039 | |||||||||||||
PF Loan | 6M Libor+2.50~2.70 | 2032 | USD | 118,684 | 137,412 | |||||||||||||
Others | 3.88 | 2021 | USD | 289,709 | 334,685 | |||||||||||||
SCNT and others | Shareholder’s loan | 6.50~8.00 | 2023 | USD | 13,000 | 15,051 | ||||||||||||
Shareholder’s loan | 8.00 | 2031 | JOD | 4,853 | 7,925 | |||||||||||||
Samsung Life Insurance and others | Syndicated Loan | 3.10 | 2032 | JPY | 4,981,038 | 52,972 | ||||||||||||
Woori Bank and others | Syndicated Loan | JPY 6M Libor+2.00 | 2032 | JPY | 3,213,121 | 34,171 | ||||||||||||
Shinhan Bank | Note(Bond) | 5.70 | 2037 | USD | 142,608 | 165,112 | ||||||||||||
IFC and others | Others | 6M Libor+5.00 | 2031 | PKR | 37,252,930 | 278,652 | ||||||||||||
Federal Financing Bank and others | PF Loan | 2.39~13.00 | 2031~2038 | USD | 101,380 | 117,377 | ||||||||||||
Others | Others | — | — | USD | 57 | 64 | ||||||||||||
|
| |||||||||||||||||
1,345,465 | ||||||||||||||||||
|
| |||||||||||||||||
3,628,631 | ||||||||||||||||||
Less : Discount on long-term borrowings |
| (22,309 | ) | |||||||||||||||
Less : Current portion of long-term borrowings |
| (217,579 | ) | |||||||||||||||
Add : Current portion of discount on long-term borrowings |
| 1,000 | ||||||||||||||||
|
| |||||||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
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 on long-term borrowings |
| (22,972 | ) | |||||||||||||||
Less : Current portion of long-term borrowings |
| (312,994 | ) | |||||||||||||||
Add : Current portion of discount on long-term borrowings |
| 972 | ||||||||||||||||
|
| |||||||||||||||||
|
|
125
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(5) | Local debt securities as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||
Issue date | Maturity | Interest rate (%) | 2019 | 2018 | ||||||||||
Electricity bonds | 2010.04.08 ~2019.12.30 | 2020.01.12 ~2049.10.24 | 1.32~5.26 | 24,480,000 | ||||||||||
Corporate bonds (*) | 2009.10.16 ~2019.12.19 | 2020.02.22 ~2049.12.19 | 1.29~6.00 | 24,463,577 | 23,223,228 | |||||||||
|
|
|
| |||||||||||
52,913,577 | 47,703,228 | |||||||||||||
Less : Discount on local debt securities | (42,274 | ) | (41,247 | ) | ||||||||||
Less : Current portion of local debt securities | (6,340,000 | ) | (5,330,000 | ) | ||||||||||
Add : Current portion of discount on local debt securities | 1,409 | 1,035 | ||||||||||||
|
|
|
| |||||||||||
42,333,016 | ||||||||||||||
|
|
|
|
(*) | Corporate bonds of HeeMang Sunlight Power Co., Ltd. amounting to |
(6) | Foreign debt securities as of December 31, 2019 and 2018 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||
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 | 6.00~7.95 | USD | 249,074 | |||||||||
FY-97 | 1997.01.31~1997.08.04 | 2027.02.01~2027.08.01 | 6.75~7.00 | USD | 314,717 | 364,379 | ||||||||
FY-04 | 2004.04.23 | 2034.04.23 | 5.13 | USD | 286,920 | 332,196 | ||||||||
FY-11 | 2011.07.13 | 2021.07.13 | 4.75 | USD | 500,000 | 578,900 | ||||||||
FY-12 | 2012.09.19 | 2022.09.19 | 3.00 | USD | 750,000 | 868,350 | ||||||||
FY-13 | 2013.09.25 | 2020.09.25 | 5.75 | AUD | 325,000 | 263,361 | ||||||||
FY-14 | 2014.07.30~2014.12.02 | 2020.06.02~2029.07.30 | 2.50~3.57 | USD | 600,000 | 694,680 | ||||||||
FY-15 | 2015.06.15 | 2025.06.15 | 3.25 | USD | 300,000 | 347,340 | ||||||||
FY-16 | 2016.01.21 | 2021.07.21 | 2.50 | USD | 300,000 | 347,340 | ||||||||
FY-17 | 2017.04.12~2017.07.25 | 2020.04.12~2027.07.25 | 2.38~3.13 | USD | 1,100,000 | 1,273,580 | ||||||||
FY-17 | 2017.10.30 | 2037.10.30 | 1.70 | EUR | 40,000 | 51,897 | ||||||||
FY-17 | 2017.11.16 | 2037.11.16 | 2.36 | SEK | 450,000 | 55,737 | ||||||||
FY-18 | 2018.01.29~2018.07.25 | 2021.01.29~2023.07.25 | 3.00~3.88 | USD | 1,800,000 | 2,084,040 | ||||||||
FY-18 | 2018.03.13 | 2028.03.13 | 3.35 | HKD | 1,650,000 | 245,289 | ||||||||
FY-19 | 2019.01.22~2019.06.24 | 2022.01.22~2024.06.24 | 2.50~3.38 | USD | 800,000 | 926,240 | ||||||||
FY-19 | 2019.02.27 | 2024.02.27 | 0.13 | CHF | 200,000 | 239,104 | ||||||||
FY-19 | 2019.07.19 | 2024.07.19~2027.07.19 | 0~0.05 | CHF | 300,000 | 358,656 | ||||||||
FY-19 | 2019.07.22 | 2022.07.22 | 2.38 | USD | 300,000 | 347,340 | ||||||||
FY-19 | 2019.10.31 | 2024.10.30 | 3M BBSW+97bp | AUD | 300,000 | 243,102 | ||||||||
FY-19 | 2019.12.19 | 2037.12.31 | 3.3~5.7 | USD | 378,460 | 438,181 | ||||||||
|
| |||||||||||||
10,348,091 | ||||||||||||||
Less : Discount on foreign debt securities |
| (49,426 | ) | |||||||||||
Add : Premium on foreign debt securities |
| 1,696 | ||||||||||||
Less : Current portion of foreign debt securities |
| (1,205,485 | ) | |||||||||||
Add : Current portion of discount on foreign debt securities |
| 1,371 | ||||||||||||
|
| |||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
23. | Borrowings and Debt Securities, Continued |
(6) Foreign | debt securities as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||||||
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 years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 54,747,392 | |||||||
Cash flow | 6,342,074 | 5,972,336 | ||||||
Effect of exchange rate fluctuations | 494,414 | 322,515 | ||||||
Increase from the business combination | 2,900 | — | ||||||
Others | 2,526 | (7,616 | ) | |||||
|
|
|
| |||||
Ending balance | 61,034,627 | |||||||
|
|
|
|
127
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
24. | Lease |
1) | Group as a lessee |
(1) | Lease contracts |
The Group had recognized finance lease assets and liabilities only for those lease contracts classified as finance lease contracts under KIFRS 1017 ‘Lease’. However, upon adoption of KIFRS 1116 ‘Lease’, The Group additionally recognized right-of-use assets and lease liabilities for those lease contracts that were classified operating lease previously under KIFRS 1017 ‘Lease’.
The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognizedW20,127 million as expense for the year ended December 31, 2019. The Group also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e. approximately less thanW5 million), and recognizedW1,616 million as expense for the year ended December 31, 2019.
The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.
(2) | Right-of-use assets as of December 31, 2019 are as follows: |
In millions of won | 2019 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | (49,029 | ) | 644,074 | ||||||||||||
Buildings | 54,980 | — | (20,403 | ) | 34,577 | |||||||||||
Structures | 28,198 | — | (2,554 | ) | 25,644 | |||||||||||
Machinery | 1,308 | — | (484 | ) | 824 | |||||||||||
Ships | 4,113,754 | — | (425,465 | ) | 3,688,289 | |||||||||||
Vehicles | 20,817 | — | (7,109 | ) | 13,708 | |||||||||||
Others (*) | 2,661,850 | — | (2,285,393 | ) | 376,457 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
— | (2,790,437 | ) | 4,783,573 | |||||||||||||
|
|
|
|
|
|
|
|
(*) | Including power purchase agreements (“PPA”) with GS EPS and two other LNG combined power suppliers. |
128
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
24. | Lease, Continued |
(3) | Changes in right-of-use assets for the year ended December 31, 2019 are as follows: |
In millions of won | 2019 | |||||||||||||||||||
Beginning balance | Changes in accounting policies (*) | Increase | Depreciation | Ending balance | ||||||||||||||||
Land | 684,386 | 8,717 | (49,029 | ) | 644,074 | |||||||||||||||
Buildings | — | 36,874 | 18,106 | (20,403 | ) | 34,577 | ||||||||||||||
Structures | — | 20,840 | 7,358 | (2,554 | ) | 25,644 | ||||||||||||||
Machinery | — | — | 1,308 | (484 | ) | 824 | ||||||||||||||
Ships | — | 3,986,947 | 126,807 | (425,465 | ) | 3,688,289 | ||||||||||||||
Vehicles | — | 11,258 | 9,559 | (7,109 | ) | 13,708 | ||||||||||||||
Others (*) | — | 403,346 | 49,141 | (76,030 | ) | 376,457 | ||||||||||||||
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| |||||||||||
5,143,651 | 220,996 | (581,074 | ) | 4,783,573 | ||||||||||||||||
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(*) | Including transferred amount of W195,704 million, which was classified as finance lease assets as of December 31, 2018. |
(4) | Lease liabilities as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||
Less than 1 year | ||||
1 ~ 5 years | 2,334,883 | |||
More than 5 years | 2,735,681 | |||
|
| |||
5,757,009 | ||||
Less : Discount | (686,876 | ) | ||
|
| |||
Present value of lease payment | ||||
|
|
In millions of won | 2018 | |||||||
Minimum lease payment | Present value of minimum lease payment | |||||||
Less than 1 year | 57,200 | |||||||
1 ~ 5 years | 228,783 | 170,676 | ||||||
More than 5 years | 65,250 | 55,930 | ||||||
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| |||||
283,806 | ||||||||
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(5) | The details of the liquidity classification of lease liabilities (Prior year : finance lease liabilities) as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Current lease liabilities | 57,200 | |||||||
Non-current lease liabilities | 4,434,784 | 226,606 | ||||||
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| |||||
283,806 | ||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
24. | Lease, Continued |
(6) | Changes in lease liabilities for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||
Beginning balance | Changes in accounting policies | Increase | Decrease | Interest expenses | Others (*) | Ending balance | ||||||||||||||||||||||
Lease liabilities | 4,943,584 | 218,800 | (659,387 | ) | 85,950 | 197,380 | 5,070,133 |
(*) | Including translation effect of foreign currency lease liabilities and others. |
In millions of won | 2018 | |||||||||||||||
Beginning balance | Acquisition | Decrease | Ending balance | |||||||||||||
Finance lease liabilities | — | (134,454 | ) | 283,806 |
(7) | Details of expense relating to lease contracts as lessee for the year ended December 31, 2019 are as follows: |
In millions of won | 2019 | |||
Depreciation of right-of-use assets | ||||
Interest expenses of lease liabilities | 85,950 | |||
Leases expenses for short-term leases | 20,127 | |||
Leases expenses for leases of low-value assets | 1,616 | |||
Variable lease payments | (15,912 | ) | ||
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(8) | Minimum lease payment and contingent rent payment recognized as an expense as a lessee for the year ended December 31, 2018 are as follows: |
In millions of won | 2018 | |||
Minimum lease payment | ||||
Contingent rent payment | (18,872 | ) | ||
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(9) | The total cash outflow related to the lease contract, including cash outflows due to short-term leases and leases of low-value asset leases, amounts to |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
24. | Lease, Continued |
(2) | Group as a lessor |
(1) | Finance lease contracts |
The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25 year lease term, and an 89.1MW level Fujeij wind power plant over a 20 year lease term. Also, the Group has provided fly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 30 energy storage system installation projects and 96 energy efficiency contracts as finance leases with a lease term of 1 to 10 years. Also, the Group entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.
(2) | Profit and loss related to finance lease |
In millions of won | 2019 | |||
Finance income on the net investment in the lease |
(3) | Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of December 31, 2019 are as follows: |
In millions of won | 2019 | |||
Less than 1 year | ||||
1 ~ 2 years | 150,895 | |||
2 ~ 3 years | 150,596 | |||
3 ~ 4 years | 149,364 | |||
4 ~ 5 years | 145,964 | |||
More than 5 years | 1,740,652 | |||
|
| |||
2,510,564 | ||||
Less : Unearned finance income | (1,331,723 | ) | ||
|
| |||
Net investment in the lease | ||||
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|
The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 3.5% up to 16.48% per year as of December 31, 2019. (prior year : 3.5% ~ 9.12%)
(4) | Finance lease receivables as of December 31, 2018 are as follows: |
In millions of won | 2018 | |||||||
Minimum lease payment | Present value of minimum lease payment | |||||||
Less than 1 year | 84,688 | |||||||
1 ~ 5 years | 467,518 | 223,622 | ||||||
More than 5 years | 1,333,016 | 675,036 | ||||||
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| |||||
983,346 | ||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
24. | Lease, Continued |
(5) | Changes in the allowance for doubtful accounts of finance lease receivables for the year ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | — | |||||||
Bad debt expense | — | 1,133 | ||||||
Reversal of allowance for doubtful accounts | (271 | ) | — | |||||
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| |||||
Ending balance | 1,133 | |||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2018
5. | Employment Benefits |
(1) Employment benefit obligations as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Net defined benefit asset | — | |||||||
Net defined benefit obligations | 1,925,134 | 1,638,785 | ||||||
Other long-term employee benefit obligations | 4,720 | 6,284 | ||||||
|
|
|
| |||||
1,645,069 | ||||||||
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|
|
(2) Principal assumptions on actuarial valuation as of December 31, 2019 and 2018 are as follows:
2019 | 2018 | |||
Discount rate | 1.92%~2.05% | 2.24%~2.90% | ||
Weighted average future salary and benefit levels | 4.39% | 4.88% | ||
Weighted average duration | 13.23 years | 13.71 years |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
25. | Employment Benefits, Continued |
(3) | Details of expense relating to defined benefit plans for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Current service cost | 369,899 | |||||||
Interest cost | 83,619 | 87,687 | ||||||
Expected return on plan assets | (41,597 | ) | (42,135 | ) | ||||
Past service cost | 301,442 | — | ||||||
Loss from settlement | (2,017 | ) | (767 | ) | ||||
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|
|
| |||||
414,684 | ||||||||
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|
|
Expenses as described above are recognized in those items below in the financial statements.
In millions of won | 2019 | 2018 | ||||||
Cost of sales | 308,672 | |||||||
Selling and administrative expenses | 120,455 | 51,903 | ||||||
Others (Construction-in-progress and others) | 80,669 | 54,109 | ||||||
|
|
|
| |||||
414,684 | ||||||||
|
|
|
|
In addition, for the years ended December 31, 2019 and 2018, employee benefit obligations expenses ofW71,844 million andW66,833 million, respectively, are recognized as cost of sales; andW12,775 million andW13,204 million, respectively, are recognized as selling and administrative expenses; andW13,893 million andW14,189 million, respectively, are recognized as construction-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 Financial Statements, Continued
December 31, 2019
25. | Employment Benefits, Continued |
(4) | Details of defined benefit obligations as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Present value of defined benefit obligation from funded plans | 3,414,116 | |||||||
Fair value of plan assets | (2,111,313 | ) | (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 years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 2,951,842 | |||||||
Current service cost | 440,300 | 369,899 | ||||||
Interest cost (*) | 83,619 | 87,687 | ||||||
Remeasurement component | (93,736 | ) | 154,939 | |||||
Past service cost | 301,442 | — | ||||||
Loss (profit) from settlement | (2,018 | ) | (767 | ) | ||||
Actual payments | (108,057 | ) | (149,454 | ) | ||||
Others | (266 | ) | (30 | ) | ||||
|
|
|
| |||||
Ending balance | 3,414,116 | |||||||
|
|
|
|
(*) | Corporate bond (AAA rated) yield at year-end is applied to measure the interest cost on employee benefit obligations. |
(6) | Changes in the fair value of plan assets for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 1,475,641 | |||||||
Expected return | 41,597 | 42,135 | ||||||
Remeasurement component | (11,186 | ) | (12,308 | ) | ||||
Contributions by the employers | 348,386 | 330,064 | ||||||
Actual payments | (42,815 | ) | (60,201 | ) | ||||
|
|
|
| |||||
Ending balance | 1,775,331 | |||||||
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|
|
In addition, losses on accumulated remeasurement component amounted toW117,779 million andW219,381 million have been recognized as other comprehensive income or loss for the years ended December 31, 2019 and 2018, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
25. | Employment Benefits, Continued |
(7) | Details of the fair value of plan assets as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Equity instruments | 96,823 | |||||||
Debt instruments | 648,265 | 510,184 | ||||||
Bank deposit | 199,743 | 275,518 | ||||||
Others | 1,074,070 | 892,806 | ||||||
|
|
|
| |||||
1,775,331 | ||||||||
|
|
|
|
For the years ended December 31, 2019 and 2018, actual returns on plan assets amounted toW30,411 million andW29,827 million, respectively.
(8) | Remeasurement component recognized in other comprehensive income (loss) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Actuarial gain from changes in financial assumptions | 186,428 | |||||||
Experience adjustments, etc. | (90,820 | ) | (31,489 | ) | ||||
Expected return | 11,186 | 12,308 | ||||||
|
|
|
| |||||
167,247 | ||||||||
|
|
|
|
Remeasurement component recognized as other comprehensive income or loss is included in retained earnings.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
26. | Provisions |
(1) Provisions as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
|
|
|
| |||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Employment benefits | ||||||||||||||||
Provisions for employment benefits | — | 976,347 | — | |||||||||||||
Litigation | ||||||||||||||||
Litigation provisions | 39,177 | 49,221 | 40,157 | 37,636 | ||||||||||||
Decommissioning cost | ||||||||||||||||
Nuclear plants | — | 15,994,039 | — | 13,388,134 | ||||||||||||
Spent fuel | 401,741 | 953,539 | — | 1,291,354 | ||||||||||||
Radioactive waste | 77,053 | 1,811,029 | 4,310 | 1,680,698 | ||||||||||||
PCBs | — | 152,981 | — | 147,668 | ||||||||||||
Other recovery provisions | — | 10,773 | — | 10,477 | ||||||||||||
Others | ||||||||||||||||
Power plant regional support program | 140,133 | — | 137,668 | — | ||||||||||||
Transmission regional support program | 139,785 | — | 151,698 | — | ||||||||||||
Provisions for tax | — | — | 6,845 | — | ||||||||||||
Provisions for financial guarantee | 111 | 81,246 | 1,320 | 14,266 | ||||||||||||
Provisions for RPS | 2,889 | — | 93,919 | — | ||||||||||||
Provisions for greenhouse gas emissions obligations | 682,459 | — | 136,187 | — | ||||||||||||
Others | 145,754 | 13,220 | 46,347 | 15,515 | ||||||||||||
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|
|
|
|
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|
| |||||||||
19,066,048 | 1,594,798 | 16,585,748 | ||||||||||||||
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
26. | Provisions, Continued |
(2) | Changes in provisions for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||
Beginning balance | Increase in provision | Payment | Reversal | Others | Ending balance | |||||||||||||||||||
Employment benefits | ||||||||||||||||||||||||
Provisions for employment benefits | 900,033 | (879,980 | ) | (20,781 | ) | — | 975,619 | |||||||||||||||||
Litigation | ||||||||||||||||||||||||
Litigation provisions | 77,793 | 59,366 | (17,236 | ) | (31,525 | ) | — | 88,398 | ||||||||||||||||
Decommissioning cost | ||||||||||||||||||||||||
Nuclear plants | 13,388,134 | 2,639,562 | (33,657 | ) | — | — | 15,994,039 | |||||||||||||||||
Spent fuel | 1,291,354 | 440,029 | (376,103 | ) | — | — | 1,355,280 | |||||||||||||||||
Radioactive waste | 1,685,008 | 209,551 | (6,787 | ) | — | 310 | 1,888,082 | |||||||||||||||||
PCBs | 147,668 | 14,251 | (8,938 | ) | — | — | 152,981 | |||||||||||||||||
Other recovery provisions | 10,477 | 2,020 | (2,033 | ) | — | 309 | 10,773 | |||||||||||||||||
Others | ||||||||||||||||||||||||
Power plant regional support program | 137,668 | 41,341 | (48,390 | ) | — | 9,514 | 140,133 | |||||||||||||||||
Transmission regional support program | 151,698 | 169,616 | (181,529 | ) | — | — | 139,785 | |||||||||||||||||
Provisions for tax | 6,845 | — | — | (6,847 | ) | 2 | — | |||||||||||||||||
Provisions for financial guarantee | 15,586 | 83,910 | (16,589 | ) | (1,551 | ) | 1 | 81,357 | ||||||||||||||||
Provisions for RPS | 93,919 | 222,119 | (313,149 | ) | — | — | 2,889 | |||||||||||||||||
Provisions for greenhouse gas emissions obligations | 136,187 | 724,002 | (152,463 | ) | (25,267 | ) | — | 682,459 | ||||||||||||||||
Others | 61,862 | 113,751 | (16,217 | ) | (833 | ) | 411 | 158,974 | ||||||||||||||||
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|
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| |||||||||||||
5,619,551 | (2,053,071 | ) | (86,804 | ) | 10,547 | 21,670,769 | ||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
26. | Provisions, Continued |
(2) | Changes in provisions for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 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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|
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|
|
|
|
|
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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 Financial Statements, Continued
December 31, 2019
27. | Government Grants |
(1) | Government grants as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Land | (21,968 | ) | ||||||
Buildings | (61,920 | ) | (63,189 | ) | ||||
Structures | (186,554 | ) | (190,854 | ) | ||||
Machinery | (158,907 | ) | (173,242 | ) | ||||
Vehicles | (2,275 | ) | (4,220 | ) | ||||
Equipment | (241 | ) | (418 | ) | ||||
Tools | (403 | ) | (675 | ) | ||||
Construction-in-progress | (61,211 | ) | (54,740 | ) | ||||
Finance lease assets | — | (26 | ) | |||||
Investment properties | (13 | ) | (50 | ) | ||||
Software | (235 | ) | (420 | ) | ||||
Development expenditures | (1,492 | ) | (2,110 | ) | ||||
Intangible assets under development | (11,029 | ) | (10,564 | ) | ||||
Other intangible assets | (79 | ) | — | |||||
|
|
|
| |||||
(522,476 | ) | |||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2018
27. | Government Grants, Continued |
(2) | Changes in government grants for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||
Beginning balance | Receipt | Acquisitions | Offset items with depreciation expense and others | Disposals | Others | Ending balance | ||||||||||||||||||||||
Cash | (21,705 | ) | — | — | — | 21,705 | — | |||||||||||||||||||||
Land | (21,968 | ) | — | — | — | 151 | — | (21,817 | ) | |||||||||||||||||||
Buildings | (63,189 | ) | — | — | 6,214 | — | (4,945 | ) | (61,920 | ) | ||||||||||||||||||
Structures | (190,854 | ) | — | — | 9,373 | 2,405 | (7,478 | ) | (186,554 | ) | ||||||||||||||||||
Machinery | (173,242 | ) | — | — | 17,993 | 635 | (4,293 | ) | (158,907 | ) | ||||||||||||||||||
Vehicles | (4,220 | ) | — | — | 2,170 | 5 | (230 | ) | (2,275 | ) | ||||||||||||||||||
Equipment | (418 | ) | — | — | 262 | — | (85 | ) | (241 | ) | ||||||||||||||||||
Tools | (675 | ) | — | — | 281 | — | (9 | ) | (403 | ) | ||||||||||||||||||
Construction-in-progress | (54,740 | ) | — | 12,338 | — | — | (18,809 | ) | (61,211 | ) | ||||||||||||||||||
Finance lease assets | (26 | ) | — | — | — | — | 26 | — | ||||||||||||||||||||
Investment properties | (50 | ) | — | — | 1 | — | 36 | (13 | ) | |||||||||||||||||||
Software | (420 | ) | — | — | 202 | — | (17 | ) | (235 | ) | ||||||||||||||||||
Development expenditures | (2,110 | ) | — | — | 833 | — | (215 | ) | (1,492 | ) | ||||||||||||||||||
Intangible assets under development | (10,564 | ) | — | — | — | — | (465 | ) | (11,029 | ) | ||||||||||||||||||
Other intangible assets | — | — | — | 2 | — | (81 | ) | (79 | ) | |||||||||||||||||||
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| |||||||||||||||
(21,705 | ) | 12,338 | 37,331 | 3,196 | (14,860 | ) | (506,176 | ) | ||||||||||||||||||||
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|
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|
|
In millions of won | 2018 | |||||||||||||||||||||||||||
Beginning balance | Receipt | Acquisitions | Offset items with depreciation expense and others | Disposals | 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 Financial Statements, Continued
December 31, 2019
28. | Deferred Revenue |
Deferred revenue related to the Group’s construction contracts for the years ended December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 8,325,181 | |||||||
Increase during the current period | 1,199,783 | 875,930 | ||||||
Recognized as revenue during the current period | (604,808 | ) | (594,548 | ) | ||||
|
|
|
| |||||
Ending balance | 8,606,563 | |||||||
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|
|
|
29. | Non-financial Liabilities |
Non-financial liabilities as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance received | 192,863 | 3,724,238 | 80,937 | |||||||||||||
Unearned revenue | 30,988 | 6,589 | 63,038 | 4,690 | ||||||||||||
Deferred revenue | 590,928 | 8,610,610 | 556,072 | 8,050,491 | ||||||||||||
Withholdings | 160,977 | 10,901 | 172,454 | 10,856 | ||||||||||||
Others | 1,080,220 | 13,489 | 1,058,239 | 13,059 | ||||||||||||
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| |||||||||
8,834,452 | 5,574,041 | 8,160,033 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
30. | Contributed Capital |
(1) | Details of shares issued as of December 31, 2019 and 2018 are as follows: |
In millions of won except share information | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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 years ended December 31, 2019 and 2018 are as follows: |
Number of shares | 2019 | 2018 | ||||||
Beginning balance | 641,964,077 | 641,964,077 | ||||||
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|
| |||||
Ending balance | 641,964,077 | 641,964,077 | ||||||
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|
|
(3) | Details of share premium as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Share premium | 843,758 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
31. | Retained Earnings and Dividends Paid |
(1) | Details of retained earnings as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Legal reserve (*) | 1,604,910 | |||||||
Voluntary reserves | 34,785,425 | 35,906,267 | ||||||
Retained earnings before appropriations | 12,811,798 | 14,007,942 | ||||||
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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 to paid-in capital or offset against accumulated deficit by the resolution of the shareholders. |
(2) | Details of voluntary reserves as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 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 years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 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 Group | (2,345,517 | ) | (1,314,567 | ) | ||||
Changes in equity method retained earnings | (6,789 | ) | (1,153 | ) | ||||
Remeasurement of defined benefit liability, net of tax | 36,160 | (100,495 | ) | |||||
Transfer of gain (loss) on valuation of financial assets through other comprehensive income | (840 | ) | — | |||||
Dividends paid | — | (507,152 | ) | |||||
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|
|
| |||||
Ending balance | 51,519,119 | |||||||
|
|
|
|
(4) | Dividends paid for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 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 | 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 Financial Statements, Continued
December 31, 2019
31. | Retained Earnings and Dividends Paid, Continued |
(5) | Changes in retained earnings of investments in associates and joint ventures for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | 5,122 | |||||||
Changes | (6,789 | ) | (1,153 | ) | ||||
|
|
|
| |||||
Ending balance | 3,969 | |||||||
|
|
|
|
(6) | Changes in remeasurement components related to defined benefit liability for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Beginning balance | (43,513 | ) | ||||||
Changes | 76,395 | (154,198 | ) | |||||
Income tax effect | (40,235 | ) | 53,703 | |||||
Transfer to reserve for business expansion | 65,442 | (75,373 | ) | |||||
|
|
|
| |||||
Ending balance | (219,381 | ) | ||||||
|
|
|
|
32. | Statement of Disposition of Deficit |
For the year ended December 31, 2018, KEPCO’s retained earnings were appropriated on March 22, 2019. For the year ended December 31, 2019, KEPCO’s deficits are expected to be disposed on March 27, 2020. Statements of disposition of deficit and appropriation of retained earnings of KEPCO, the controlling company, for the years ended December 31, 2019 and 2018, respectively, are as follows:
In millions of won except for dividends per share | 2019 | 2018 | ||||||
I. Retained earnings before appropriations (undisposed deficit) | ||||||||
Unappropriated retained earnings carried over from prior years | — | |||||||
Effect of change in accounting policy | — | 39,813 | ||||||
Net income (loss) | (2,594,957 | ) | (1,095,213 | ) | ||||
Remeasurement of the defined benefit plan | (11,402 | ) | (65,442 | ) | ||||
|
|
|
| |||||
(2,606,359 | ) | (1,120,842 | ) | |||||
|
|
|
| |||||
II. Transfer from voluntary reserves | 2,606,359 | 1,120,842 | ||||||
|
|
|
| |||||
III. Subtotal ( I+II ) | — | — | ||||||
|
|
|
| |||||
IV. Appropriations of retained earnings | — | — | ||||||
V. Unappropriated retained earnings to be carried over forward to subsequent year | — | — |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
33. | Hybrid Bonds |
Hybrid bonds classified as equity(non-controlling interest) as of December 31, 2019and 2018are as follows:
In millions of won | ||||||||||||||||||||||||
Issuer | Hybrid bond | Issued date | Maturity | Yield (%) | 2019 | 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 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
398,910 | ||||||||||||||||||||||||
|
|
|
|
Although these instruments have contractual maturity dates, the contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Group decides not to pay dividends on 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 Financial Statements, Continued
December 31, 2019
34. | Other Components of Equity |
(1) | Other components of equity as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Other capital surplus | 1,234,825 | |||||||
Accumulated other comprehensive loss | (280,730 | ) | (358,570 | ) | ||||
Other equity | 13,294,973 | 13,294,973 | ||||||
|
|
|
| |||||
14,171,228 | ||||||||
|
|
|
|
(2) | Changes in other capital surplus for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 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 | — | (8,461 | ) | (8,461 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | 838,840 | 1,226,364 | 387,524 | 847,301 | 1,234,825 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
34. | Other Components of Equity, Continued |
(3) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 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 | (10,891 | ) | — | — | — | (10,891 | ) | |||||||||||||
Shares in other comprehensive income of associates and joint ventures, net of tax | — | 19,343 | — | — | 19,343 | |||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | 55,347 | — | 55,347 | |||||||||||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | — | — | — | 14,041 | 14,041 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ending balance | 142,896 | (294,898 | ) | (36,129 | ) | (280,730 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
In millions of won | 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 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ending balance | 123,553 | (350,245 | ) | (50,170 | ) | (358,570 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(4) | Other equity as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Statutory revaluation reserve | 13,295,098 | |||||||
Changes in other equity | (125 | ) | (125 | ) | ||||
|
|
|
| |||||
13,294,973 | ||||||||
|
|
|
|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
35. | Sales |
Details of sales for the years ended December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||||||||||
Domestic | Overseas | Total | Domestic | Overseas | Total | |||||||||||||||||||
[Type of goods and services] |
| |||||||||||||||||||||||
Sales of goods | 285,546 | 56,894,876 | 57,514,866 | 382,938 | 57,897,804 | |||||||||||||||||||
Electricity | 55,939,001 | — | 55,939,001 | 56,842,011 | — | 56,842,011 | ||||||||||||||||||
Heat supply | 220,948 | — | 220,948 | 216,117 | — | 216,117 | ||||||||||||||||||
Others | 449,381 | 285,546 | 734,927 | 456,738 | 382,938 | 839,676 | ||||||||||||||||||
Sales of service | 222,106 | 186,184 | 408,290 | 176,539 | 216,328 | 392,867 | ||||||||||||||||||
Sales of construction services | 110,692 | 1,154,224 | 1,264,916 | 108,586 | 1,633,805 | 1,742,391 | ||||||||||||||||||
Revenue related to transfer of assets from customers | 604,808 | — | 604,808 | 594,548 | — | 594,548 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1,625,954 | 59,172,890 | 58,394,539 | 2,233,071 | 60,627,610 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
[Timing of revenue recognition] |
| |||||||||||||||||||||||
Performance obligations satisfied at a point in time | 285,546 | 56,894,876 | 57,514,866 | 382,938 | 57,897,804 | |||||||||||||||||||
Performance obligations satisfied over time | 937,606 | 1,340,408 | 2,278,014 | 879,673 | 1,850,133 | 2,729,806 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1,625,954 | 59,172,890 | 58,394,539 | 2,233,071 | 60,627,610 | ||||||||||||||||||||
|
|
|
|
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
36. | Selling and Administrative Expenses |
(1) | Selling and administrative expenses for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Salaries | 757,819 | |||||||
Retirement benefit expense | 157,272 | 65,107 | ||||||
Welfare and benefit expense | 120,463 | 132,089 | ||||||
Insurance expense | 12,427 | 12,181 | ||||||
Depreciation | 232,510 | 214,499 | ||||||
Amortization of intangible assets | 76,547 | 54,153 | ||||||
Bad debt expense | (12,719 | ) | 39,784 | |||||
Commission | 632,849 | 714,096 | ||||||
Advertising expense | 34,453 | 30,894 | ||||||
Training expense | 7,174 | 6,277 | ||||||
Vehicle maintenance expense | 9,525 | 10,148 | ||||||
Publishing expense | 3,414 | 3,307 | ||||||
Business development expense | 3,038 | 2,785 | ||||||
Rent expense | 40,505 | 42,851 | ||||||
Telecommunication expense | 8,451 | 23,505 | ||||||
Transportation expense | 865 | 686 | ||||||
Taxes and dues | 58,666 | 46,424 | ||||||
Expendable supplies expense | 6,682 | 6,166 | ||||||
Water, light and heating expense | 11,867 | 12,629 | ||||||
Repairs and maintenance expense | 88,576 | 62,580 | ||||||
Ordinary development expense | 224,463 | 215,494 | ||||||
Travel expense | 15,652 | 14,363 | ||||||
Clothing expense | 9,369 | 10,108 | ||||||
Survey and analysis expense | 848 | 705 | ||||||
Membership fee | 969 | 1,043 | ||||||
Others | 150,506 | 148,197 | ||||||
|
|
|
| |||||
2,627,890 | ||||||||
|
|
|
|
(2) | Other selling and administrative expenses for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Accommodation development expenses | 52,822 | |||||||
Miscellaneous wages | 39,794 | 32,447 | ||||||
Litigation and filing expenses | 21,768 | 12,853 | ||||||
Compensation for damages | (1,924 | ) | 19,193 | |||||
Outsourcing expenses | 3,293 | 3,036 | ||||||
Reward expenses | 2,858 | 2,713 | ||||||
Overseas market development expenses | 1,997 | 1,361 | ||||||
Others | 28,775 | 23,772 | ||||||
|
|
|
| |||||
148,197 | ||||||||
|
|
|
|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
37. | OtherNon-operating Income and Expense |
(1) | Othernon-operating income for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Reversal of other provisions | 12,700 | |||||||
Reversal of other allowance for bad debt | — | 143 | ||||||
Gains on government grants | 281 | 482 | ||||||
Gains on assets contributed | 6,921 | 17,336 | ||||||
Gains on liabilities exempted | 916 | 10,303 | ||||||
Compensation and reparations revenue | 113,292 | 89,901 | ||||||
Revenue from research contracts | 5,276 | 6,818 | ||||||
Rental income | 191,088 | 186,631 | ||||||
Others | 58,849 | 51,032 | ||||||
|
|
|
| |||||
375,346 | ||||||||
|
|
|
|
(2) | Details of others of othernon-operating income for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Refund of claim for rectification | 8,933 | |||||||
Adjustment of research project | 3,294 | 2,267 | ||||||
Maintenance expenses on lease building | 153 | 176 | ||||||
Training expenses | 3,167 | 3,220 | ||||||
Deposit redemption | 436 | 7 | ||||||
Reversal of expenses on litigation | 9,926 | 753 | ||||||
Revenue on royalty fee | — | 6,909 | ||||||
Reimbursement of insurance fee | 610 | 7,145 | ||||||
Gains on guarantee contracts | 135 | 39 | ||||||
Others | 39,159 | 21,583 | ||||||
|
|
|
| |||||
51,032 | ||||||||
|
|
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|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
37. | OtherNon-operating Income and Expense, Continued |
(3) | Othernon-operating expense for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Compensation and indemnification expense | 23,437 | |||||||
Accretion expenses of other provisions | 7,939 | 41,924 | ||||||
Depreciation expenses on investment properties | 5,069 | 923 | ||||||
Depreciation expenses on idle assets | 6,542 | 6,547 | ||||||
Other bad debt expense | 29,348 | 17,827 | ||||||
Donations | 64,752 | 63,743 | ||||||
Others | 127,860 | 76,929 | ||||||
|
|
|
| |||||
231,330 | ||||||||
|
|
|
|
(4) | Details of others of othernon-operating expense for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Operating expenses related to the idle assets | 47 | |||||||
Research grants | 399 | 461 | ||||||
Supporting expenses on farming and fishing village | 13,991 | 13,537 | ||||||
Operating expenses on fitness center | 5,234 | 4,788 | ||||||
Expenses on adjustment of research and development grants | 554 | 404 | ||||||
Taxes and dues | 188 | 199 | ||||||
Expenses on R&D supporting | 67 | 53 | ||||||
Others | 107,378 | 57,440 | ||||||
|
|
|
| |||||
76,929 | ||||||||
|
|
|
|
38. | Other Gains (Losses) |
(1) | Composition of other gains (losses) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Other gains | ||||||||
Gains on disposal of property, plant and equipment | 98,077 | |||||||
Gains on disposal of intangible assets | 206 | 12 | ||||||
Reversal of impairment loss on property, plant and equipment | 16,692 | — | ||||||
Reversal of impairment loss on intangible assets | — | 17 | ||||||
Gains on foreign currency translation | 16,340 | 14,905 | ||||||
Gains on foreign currency transaction | 53,152 | 47,297 | ||||||
Gains on insurance proceeds | 17,410 | — | ||||||
Others | 238,688 | 221,556 | ||||||
Other losses | ||||||||
Losses on disposal of property, plant and equipment | (72,508 | ) | (60,704 | ) | ||||
Losses on disposal of intangible assets | (827 | ) | (43 | ) | ||||
Impairment loss on property, plant and equipment | (50,034 | ) | (710,162 | ) | ||||
Impairment loss on intangible assets | (513,609 | ) | (8,112 | ) | ||||
Impairment loss on othernon-current assets | (49,620 | ) | (87,024 | ) | ||||
Losses on foreign currency translation | (8,757 | ) | (7,678 | ) | ||||
Losses on foreign currency transaction | (55,283 | ) | (65,366 | ) | ||||
Others | (217,892 | ) | (63,899 | ) | ||||
|
|
|
| |||||
) | (621,124 | ) | ||||||
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|
|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
38. | Other Gains (Losses), Continued |
(2) | Details of others of other gains for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Gains on disposal of inventories | 6,350 | |||||||
Gains on proxy collection of TV license fee | 41,013 | 40,450 | ||||||
Gains on compensation of impaired electric poles | 1,372 | 1,166 | ||||||
Gains on compensation for infringement on contract | — | 3,648 | ||||||
Gains on harbor facilities dues | 3,741 | 3,803 | ||||||
Gains on technical fees | 3,044 | 2,026 | ||||||
Reversal of occupation development training fees | 1,472 | 1,602 | ||||||
Gains on disposal of waste | 5,317 | 4,232 | ||||||
Gains on insurance | 812 | 22,382 | ||||||
Gains on tax rebate | 341 | 542 | ||||||
Gains on other commission | 1,111 | 4,347 | ||||||
Gains on disposal of assetsheld-for-sale | 23,778 | — | ||||||
Others | 153,263 | 131,008 | ||||||
|
|
|
| |||||
221,556 | ||||||||
|
|
|
|
(3) | Details of others of other losses for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Losses on valuation of inventories | �� | 1,953 | ||||||
Losses on disposal of inventories | 10,456 | 3,555 | ||||||
Losses due to disaster | 7,635 | 2,129 | ||||||
Losses on rounding adjustment of electric charge surtax | 1,268 | 1,265 | ||||||
Others | 195,406 | 54,997 | ||||||
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| |||||
63,899 | ||||||||
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
39. | Finance Income |
(1) | Finance Income for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Interest income | 223,767 | |||||||
Dividends income | 13,838 | 12,777 | ||||||
Gains on disposal of financial assets | 3,866 | 1,838 | ||||||
Gains on valuation of financial assets at fair value through profit or loss | 5,575 | 8,495 | ||||||
Gains on valuation of derivatives | 362,735 | 199,943 | ||||||
Gains on transaction of derivatives | 157,961 | 179,745 | ||||||
Gains on foreign currency translation | 175,839 | 143,254 | ||||||
Gains on foreign currency transaction | 21,774 | 27,051 | ||||||
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|
|
| |||||
796,870 | ||||||||
|
|
|
|
(2) | Interest income included in finance income for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Cash and cash equivalents | 40,704 | |||||||
Financial assets at fair value through profit or loss | 29,411 | 21,713 | ||||||
Financial assets at amortized cost | 539 | 89 | ||||||
Loans | 63,448 | 21,925 | ||||||
Short-term financial instrument | 49,070 | 41,025 | ||||||
Long-term financial instrument | 12,794 | 7,920 | ||||||
Other financial assets | 54 | 1 | ||||||
Trade and other receivables | 69,941 | 90,390 | ||||||
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| |||||
223,767 | ||||||||
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
40. | Finance Expenses |
(1) | Finance expenses for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Interest expense | 1,868,458 | |||||||
Losses on sale of financial assets | 2,106 | 1 | ||||||
Losses on valuation of financial assets at fair value through profit or loss | 4,513 | 6,616 | ||||||
Losses on valuation of derivatives | 45,385 | 46,740 | ||||||
Losses on transaction of derivatives | 71,546 | 32,448 | ||||||
Losses on foreign currency translation | 553,731 | 393,859 | ||||||
Losses on foreign currency transaction | 55,509 | 121,763 | ||||||
Others | 2,555 | 858 | ||||||
|
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|
| |||||
2,470,743 | ||||||||
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|
|
(2) | Interest expense included in finance expenses for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Trade and other payables | 42,830 | |||||||
Short-term borrowings | 42,971 | 32,545 | ||||||
Long-term borrowings | 119,806 | 92,243 | ||||||
Debt securities | 1,827,511 | 1,771,544 | ||||||
Other financial liabilities | 558,464 | 505,112 | ||||||
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| |||||
2,642,771 | 2,444,274 | |||||||
Less: Capitalized borrowing costs | (595,960 | ) | (575,816 | ) | ||||
|
|
|
| |||||
1,868,458 | ||||||||
|
|
|
|
Capitalization rates for the years ended December 31, 2019 and 2018 are 2.37%~3.44% and 2.17%~3.86% respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
41. | Income Taxes |
(1) | Income tax expense (benefit) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Current income tax expense | ||||||||
Payment of income tax | 378,715 | |||||||
Adjustment in respect of prior years due to change in estimate | (176,441 | ) | (195,648 | ) | ||||
Current income tax directly recognized in equity | (53,302 | ) | 101,528 | |||||
Effect of change in accounting policy | — | 1,780 | ||||||
|
|
|
| |||||
308,480 | 286,375 | |||||||
|
|
|
| |||||
Deferred tax expense | ||||||||
Generation and realization of temporary differences | (636,984 | ) | (495,658 | ) | ||||
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods | (22,469 | ) | (28,509 | ) | ||||
Changes in deferred tax on tax losses carryforwards | (582,011 | ) | (572,305 | ) | ||||
Tax credit carryforwards | (71,306 | ) | (16,224 | ) | ||||
Amount due to change in tax rate or regulations | 1,987 | — | ||||||
|
|
|
| |||||
(1,310,783 | ) | (1,112,696 | ) | |||||
|
|
|
| |||||
Income tax expense (benefit) | ) | (826,321 | ) | |||||
|
|
|
|
(2) | Reconciliation between actual income tax expense and amount computed by applying the statutory tax rate to income before income taxes for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Income (loss) before income tax | (2,000,819 | ) | ||||||
|
|
|
| |||||
Income tax expense (benefit) computed at applicable tax rate (*1) | (898,105 | ) | (550,225 | ) | ||||
|
|
|
| |||||
Adjustments | ||||||||
Effect of applying gradual tax rate | 10,362 | (1,408 | ) | |||||
Effect ofnon-taxable income | (9,990 | ) | (1,705 | ) | ||||
Effect ofnon-deductible expenses | 12,197 | 40,151 | ||||||
Effect of tax losses that are not recognized as deferred tax asset | 57,490 | 2,086 | ||||||
Effects of tax credits and deduction | (76,983 | ) | (39,471 | ) | ||||
Reversal of unrecognized deferred tax asset, net | (22,469 | ) | (28,509 | ) | ||||
Effect of change in deferred tax due to change in tax rate | 16,848 | 261 | ||||||
Deferred income tax related to investments in subsidiaries and associates | 147,598 | (52,618 | ) | |||||
Others, net | (62,810 | ) | 765 | |||||
|
|
|
| |||||
72,243 | (80,448 | ) | ||||||
Adjustment in respect of prior years due to change in estimate | (176,440 | ) | (195,648 | ) | ||||
|
|
|
| |||||
Income tax expense (benefit) | (826,321 | ) | ||||||
|
|
|
|
The effective tax rate for the years ended December 31, 2019 and 2018 is not calculated for income tax benefit.
(3) | Income tax directly adjusted to shareholders’ equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Dividends of hybrid bond | 4,273 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
41. | Income Taxes, Continued |
(4) | Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Income tax recognized as other comprehensive income (loss) | ||||||||
Gain (loss) on valuation of financial assets at fair value through other comprehensive income | ) | 35,798 | ||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | (15,642 | ) | 6,639 | |||||
Remeasurement of defined benefit obligations | (40,235 | ) | 53,703 | |||||
Investments in associates | 4,275 | 6,592 | ||||||
Others | (914 | ) | (5,477 | ) | ||||
|
|
|
| |||||
) | 97,255 | |||||||
|
|
|
|
(5) | Changes in deferred tax assets (liabilities) recognized in the statements of financial position for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||
Beginning balance | Amounts recognized in profit or loss | Amount recognized in other comprehensive income (loss) | Amounts recognized directly in equity | Others (*) | Ending balance | |||||||||||||||||||
Deferred tax on temporary differences | ||||||||||||||||||||||||
Employee benefits | 94,541 | (40,235 | ) | — | — | 648,847 | ||||||||||||||||||
Cash flow hedge | 39,461 | (23,977 | ) | (15,642 | ) | (841 | ) | — | (999 | ) | ||||||||||||||
Investments in associates or subsidiaries | (8,666,871 | ) | (3,131 | ) | 4,275 | — | — | (8,665,727 | ) | |||||||||||||||
Property, plant and equipment | (6,522,778 | ) | (592,440 | ) | — | — | — | (7,115,218 | ) | |||||||||||||||
Finance lease | (453,074 | ) | 292,631 | — | — | — | (160,443 | ) | ||||||||||||||||
Intangible assets | 6,055 | (20,232 | ) | — | — | (41,729 | ) | (55,906 | ) | |||||||||||||||
Financial assets at fair value through profit or loss | 19 | 322 | — | — | — | 341 | ||||||||||||||||||
Financial assets at fair value through other comprehensive income | 25,576 | (3,114 | ) | (4,217 | ) | — | — | 18,245 | ||||||||||||||||
Deferred revenue | 219,742 | (6,739 | ) | — | — | — | 213,003 | |||||||||||||||||
Provisions | 4,800,946 | 655,973 | — | — | — | 5,456,919 | ||||||||||||||||||
Doubtful receivables | 59 | — | — | — | — | 59 | ||||||||||||||||||
Other finance liabilities | 39,493 | (4,402 | ) | — | 4,273 | — | 39,364 | |||||||||||||||||
Gains or losses on foreign exchange translation | 27,080 | 30,881 | — | — | — | 57,961 | ||||||||||||||||||
Allowance for doubtful accounts | 58,756 | (1,149 | ) | — | — | — | 57,607 | |||||||||||||||||
Accrued income | (2,914 | ) | (1,462 | ) | — | — | — | (4,376 | ) | |||||||||||||||
Special deduction for property, plant and equipment | (211,746 | ) | (3,627 | ) | — | — | — | (215,373 | ) | |||||||||||||||
Others | 1,053,146 | 290,484 | (914 | ) | — | — | 1,342,716 | |||||||||||||||||
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|
|
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| |||||||||||||
(8,992,509 | ) | 704,559 | (56,733 | ) | 3,432 | (41,729 | ) | (8,382,980 | ) | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Deferred tax on unused tax losses and tax credit | ||||||||||||||||||||||||
Unused tax losses | 554,457 | 557,356 | — | — | — | 1,111,813 | ||||||||||||||||||
Excess of donation limit | 17,848 | 18,847 | — | — | — | 36,695 | ||||||||||||||||||
Tax credit | 36,656 | 70,870 | — | — | — | 107,526 | ||||||||||||||||||
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| |||||||||||||
608,961 | 647,073 | — | — | — | 1,256,034 | |||||||||||||||||||
|
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|
|
|
|
|
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|
|
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| |||||||||||||
) | 1,351,632 | (56,733 | ) | 3,432 | (41,729 | ) | (7,126,946 | ) | ||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
(*) | ‘Others’ include amount changed due to business combination. (see Note 51) |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
41. | Income Taxes, Continued |
(5) | Changes in deferred tax assets (liabilities) recognized in the statements of financial position for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2018 | |||||||||||||||||||
Beginning balance | Amounts recognized in profit or loss | Amount recognized in other comprehensive income (loss) | Amounts recognized directly in equity | Ending balance | ||||||||||||||||
Deferred tax on temporary differences | ||||||||||||||||||||
Employee benefits | 42,144 | 53,703 | — | 594,541 | ||||||||||||||||
Cash flow hedge | 65,445 | (32,623 | ) | 6,639 | — | 39,461 | ||||||||||||||
Investments in associates or subsidiaries | (8,668,016 | ) | (5,447 | ) | 6,592 | — | (8,666,871 | ) | ||||||||||||
Property, plant and equipment | (6,860,440 | ) | 337,662 | — | — | (6,522,778 | ) | |||||||||||||
Finance lease | (426,949 | ) | (26,125 | ) | — | — | (453,074 | ) | ||||||||||||
Intangible assets | 7,648 | (1,593 | ) | — | — | 6,055 | ||||||||||||||
Financial assets at fair value through profit or loss | 890 | (871 | ) | — | — | 19 | ||||||||||||||
Financial assets at fair value through other comprehensive income | (8,843 | ) | (1,379 | ) | 35,798 | — | 25,576 | |||||||||||||
Deferred revenue | 230,711 | (10,969 | ) | — | — | 219,742 | ||||||||||||||
Provisions | 4,822,833 | (21,887 | ) | — | — | 4,800,946 | ||||||||||||||
Doubtful receivables | 59 | — | — | — | 59 | |||||||||||||||
Other finance liabilities | 32,755 | 2,465 | — | 4,273 | 39,493 | |||||||||||||||
Gains or losses on foreign exchange translation | (1,354 | ) | 28,434 | — | — | 27,080 | ||||||||||||||
Allowance for doubtful accounts | 42,931 | 15,825 | — | — | 58,756 | |||||||||||||||
Accrued income | (1,825 | ) | (1,089 | ) | — | — | (2,914 | ) | ||||||||||||
Special deduction for property, plant and equipment | (200,927 | ) | (10,819 | ) | — | — | (211,746 | ) | ||||||||||||
Reserve for research and human development | (3,041 | ) | 3,041 | — | — | — | ||||||||||||||
Others | 952,754 | 105,869 | (5,477 | ) | — | 1,053,146 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(9,516,675 | ) | 422,638 | 97,255 | 4,273 | (8,992,509 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Deferred tax on unused tax losses and tax credit | ||||||||||||||||||||
Unused tax losses | — | 554,457 | — | — | 554,457 | |||||||||||||||
Excess of donation limit | — | 17,848 | — | — | 17,848 | |||||||||||||||
Tax credit | 20,431 | 16,225 | — | — | 36,656 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
20,431 | 588,530 | — | — | 608,961 | ||||||||||||||||
|
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|
|
|
|
|
|
| |||||||||||
1,011,168 | 97,255 | 4,273 | (8,383,548 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(6) | Deferred tax assets (liabilities) recognized in the statements of financial position as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Deferred tax assets | 1,233,761 | |||||||
Deferred tax liabilities | (8,564,775 | ) | (9,617,309 | ) | ||||
|
|
|
| |||||
(8,383,548 | ) | |||||||
|
|
|
|
(7) | Details of deductible temporary differences, tax losses and unused tax credits for which no deferred tax assets were recognized as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||
Deductible temporary differences | 442,391 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
42. | AssetsHeld-for-Sale |
Assetsheld-for-sale as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Land (*1) | 2,765 | |||||||
Buildings (*1) | 193 | 19,369 | ||||||
Investments (*2,3,4) | 4,921 | 747 | ||||||
|
|
|
| |||||
22,881 | ||||||||
|
|
|
|
(*1) | The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Group, determined to dispose the premises 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 premises 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 premises has been expected to rise in accordance with the development plan in Yongin, Gyeonggi Province, the Group has not actively carried out the procedure for the sale since May 2019. For this reason, the premises 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 Group. Accordingly, the Group reclassified the premises as investment properties. |
(*2) | Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of December 31, 2019 and has been reclassified to assetsheld-for-sale, accordingly. |
(*3) | Garolim Tidal Power Plant Co., Ltd. was in the process of liquidating its business as of December 31, 2019 and has been reclassified to assetsheld-for-sale, accordingly. |
(*4) | As of December 31, 2018, the Group reclassified investment of subsidiary, KOWEPO India Private Limited, as assets held for sale due to the decision of liquidation. The process of liquidation has been completed during the year ended December 31, 2019. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
43. | Expenses Classified by Nature |
Expenses classified by nature for the years ended December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 17,084,029 | 17,084,029 | ||||||||||
Salaries | 775,204 | 3,834,772 | 4,609,976 | |||||||||
Retirement benefit expense | 157,272 | 652,467 | 809,739 | |||||||||
Welfare and benefit expense | 120,463 | 443,482 | 563,945 | |||||||||
Insurance expense | 12,427 | 93,702 | 106,129 | |||||||||
Depreciation | 232,510 | 10,734,246 | 10,966,756 | |||||||||
Amortization of intangible assets | 76,547 | 80,368 | 156,915 | |||||||||
Bad debt expense | (12,719 | ) | — | (12,719 | ) | |||||||
Commission | 632,849 | 378,861 | 1,011,710 | |||||||||
Advertising expense | 34,453 | 9,852 | 44,305 | |||||||||
Training expense | 7,174 | 16,903 | 24,077 | |||||||||
Vehicle maintenance expense | 9,525 | 7,652 | 17,177 | |||||||||
Publishing expense | 3,414 | 3,423 | 6,837 | |||||||||
Business promotion expense | 3,038 | 3,981 | 7,019 | |||||||||
Rent expense | 40,505 | 176,413 | 216,918 | |||||||||
Telecommunication expense | 8,451 | 11,034 | 19,485 | |||||||||
Transportation expense | 865 | 4,555 | 5,420 | |||||||||
Taxes and dues | 58,666 | 481,684 | 540,350 | |||||||||
Expendable supplies expense | 6,682 | 32,999 | 39,681 | |||||||||
Water, light and heating expense | 11,867 | 32,378 | 44,245 | |||||||||
Repairs and maintenance expense | 88,576 | 2,210,278 | 2,298,854 | |||||||||
Ordinary development expense | 224,463 | 511,252 | 735,715 | |||||||||
Travel expense | 15,652 | 68,581 | 84,233 | |||||||||
Clothing expense | 9,369 | 7,539 | 16,908 | |||||||||
Survey and analysis expense | 848 | 3,949 | 4,797 | |||||||||
Membership fee | 969 | 12,730 | 13,699 | |||||||||
Power purchase | — | 18,269,732 | 18,269,732 | |||||||||
Others | 150,506 | 2,612,973 | 2,763,479 | |||||||||
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|
|
|
|
| |||||||
57,779,835 | 60,449,411 | |||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
43. | Expenses Classified by Nature, Continued |
Expenses classified by nature for the years ended December 31, 2019 and 2018 are as follows, continued: |
In millions of won | 2018 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 19,537,928 | 19,537,928 | ||||||||||
Salaries | 757,819 | 3,478,804 | 4,236,623 | |||||||||
Retirement benefit expense | 65,107 | 375,505 | 440,612 | |||||||||
Welfare and benefit expense | 132,089 | 464,483 | 596,572 | |||||||||
Insurance expense | 12,181 | 93,876 | 106,057 | |||||||||
Depreciation | 214,499 | 9,683,887 | 9,898,386 | |||||||||
Amortization of intangible assets | 54,153 | 64,785 | 118,938 | |||||||||
Bad debt expense | 39,784 | — | 39,784 | |||||||||
Commission | 714,096 | 475,188 | 1,189,284 | |||||||||
Advertising expense | 30,894 | 9,419 | 40,313 | |||||||||
Training expense | 6,277 | 14,096 | 20,373 | |||||||||
Vehicle maintenance expense | 10,148 | 7,809 | 17,957 | |||||||||
Publishing expense | 3,307 | 3,530 | 6,837 | |||||||||
Business promotion expense | 2,785 | 3,860 | 6,645 | |||||||||
Rent expense | 42,851 | 171,132 | 213,983 | |||||||||
Telecommunication expense | 23,505 | 82,568 | 106,073 | |||||||||
Transportation expense | 686 | 4,537 | 5,223 | |||||||||
Taxes and dues | 46,424 | 440,317 | 486,741 | |||||||||
Expendable supplies expense | 6,166 | 31,844 | 38,010 | |||||||||
Water, light and heating expense | 12,629 | 34,640 | 47,269 | |||||||||
Repairs and maintenance expense | 62,580 | 2,156,668 | 2,219,248 | |||||||||
Ordinary development expense | 215,494 | 508,394 | 723,888 | |||||||||
Travel expense | 14,363 | 67,064 | 81,427 | |||||||||
Clothing expense | 10,108 | 4,368 | 14,476 | |||||||||
Survey and analysis expense | 705 | 3,929 | 4,634 | |||||||||
Membership fee | 1,043 | 11,563 | 12,606 | |||||||||
Power purchase | — | 18,307,289 | 18,307,289 | |||||||||
Others | 148,197 | 2,170,238 | 2,318,435 | |||||||||
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58,207,721 | 60,835,611 | |||||||||||
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
44. | Earnings (Loss) Per Share |
(1) | Basic earnings (loss) per share for the years ended December 31, 2019 and 2018 are as follows: |
In won | ||||||||
Type | 2019 | 2018 | ||||||
Basic loss per share | (2,048 | ) |
(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 years ended December 31, 2019 and 2018 are as follows: |
In millions of won except number of shares | ||||||||
Type | 2019 | 2018 | ||||||
Net income (loss) attributable to controlling interest | (1,314,567 | ) | ||||||
Profit (loss) used in the calculation of total basic earnings per share | (2,345,517 | ) | (1,314,567 | ) | ||||
Weighted average number of common shares | 641,964,077 | 641,964,077 |
(3) | Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the years ended December 31, 2019 and 2018 are as follows: |
In number of shares | ||||||||
Type | 2019 | 2018 | ||||||
The number of common shares issued at beginning of the year | 641,964,077 | 641,964,077 | ||||||
Weighted average number of common shares | 641,964,077 | 641,964,077 |
(4) | There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the years ended December 31, 2019 and 2018. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Total borrowings and debt securities | 61,034,627 | |||||||
Cash and cash equivalents | 1,810,129 | 1,358,345 | ||||||
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Net borrowings and debt securities | 66,066,412 | 59,676,282 | ||||||
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Total shareholder’s equity | 68,889,649 | 71,092,762 | ||||||
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Debt to equity ratio | 95.90 | % | 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||
Cash and cash equivalents | 1,358,345 | |||||||
Financial assets at fair value through profit or loss | 747,261 | 920,935 | ||||||
Derivative assets (trading) | 165,204 | 37,631 | ||||||
Financial assets at amortized cost | 13,609 | 14,042 | ||||||
Loans | 738,707 | 718,674 | ||||||
Long-term/short-term financial instruments | 1,960,227 | 2,318,027 | ||||||
Derivative assets (applying hedge accounting) | 145,829 | 64,704 | ||||||
Trade and other receivables | 9,703,749 | 9,613,437 | ||||||
Financial guarantee contracts (*) | 3,338,566 | 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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Type | Accounts | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | |||||||||||
Future salary increases | Increase (decrease) in defined benefit obligation | (386,147 | ) | 416,956 | (363,820 | ) | ||||||||||
Discount rate | Increase (decrease) in defined benefit obligation | (402,099) | 475,765 | (377,221 | ) | 445,833 |
Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the years ended December 31, 2019and 2018 areW17,734 million andW14,646 million, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
② | Provisions |
Changes in provisions due to movements in underlying assumptions as of December 31, 2019 and 2018 are as follows:
Type | Accounts | 2019 | 2018 | |||||||
PCBs | Inflation rate | 1.09 | % | 1.27 | % | |||||
Discount rate | 1.97 | % | 2.18 | % | ||||||
Nuclear plants | Inflation rate | 1.10 | % | 1.21 | % | |||||
Discount rate | 2.43 | % | 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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||||
Type | Accounts | 0.1% Increase | 0.1% Decrease | 0.1% Increase | 0.1% Decrease | |||||||||||||
Discount rate | PCBs | 530 | (623 | ) | 627 | |||||||||||||
Nuclear plants | (316,184 | ) | 325,828 | (256,513 | ) | 263,595 | ||||||||||||
Spent fuel | (51,607 | ) | 53,621 | (49,182 | ) | 51,098 | ||||||||||||
Inflation rate | PCBs | 534 | (532 | ) | 632 | (629 | ) | |||||||||||
Nuclear plants | 346,082 | (336,182 | ) | 294,984 | (287,110 | ) | ||||||||||||
Spent fuel | 54,396 | (52,424 | ) | 51,837 | (49,961 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
In thousands of foreign currencies | Assets | Liabilities | ||||||||||||||
Type | 2019 | 2018 | 2019 | 2018 | ||||||||||||
AED | 57,403 | 10,513 | 40,061 | 5,890 | ||||||||||||
AUD | 143 | 143 | 1,036,785 | 717,712 | ||||||||||||
BDT | 85,547 | 71,575 | 635 | 1,175 | ||||||||||||
BWP | 1,437 | 1,214 | — | — | ||||||||||||
CAD | 86 | 96 | 3,112 | 4 | ||||||||||||
CHF | — | — | 500,753 | 400,000 | ||||||||||||
CNY | — | — | 26,140 | 26,140 | ||||||||||||
CZK | — | — | 243 | — | ||||||||||||
EUR | 208 | 337 | 111,199 | 105,673 | ||||||||||||
GBP | — | — | 191 | 1 | ||||||||||||
GHS | — | 25,794 | — | — | ||||||||||||
HKD | — | — | 1,648,815 | 1,650,000 | ||||||||||||
IDR | 376,136 | 60,568 | 219,801 | 206,935 | ||||||||||||
INR | 1,244,170 | 1,228,795 | 210,232 | 183,963 | ||||||||||||
JOD | 1,516 | 2,764 | 147 | 5 | ||||||||||||
JPY | 109,970 | 35,935 | 314,402 | 390,921 | ||||||||||||
KZT | 319 | 319 | — | — | ||||||||||||
MGA | 3,858,201 | 3,318,447 | 133,403 | 170,641 | ||||||||||||
MMK | 29,651 | 25,208 | — | — | ||||||||||||
PHP | 175,210 | 709,285 | 130,073 | 66,985 | ||||||||||||
PKR | 354,361 | 305,542 | 4,366 | 3,588 | ||||||||||||
SAR | 2,653 | 2,024 | 480 | — | ||||||||||||
SEK | — | — | 449,072 | 450,000 | ||||||||||||
USD | 1,227,054 | 1,422,510 | 9,963,928 | 8,103,602 | ||||||||||||
UYU | 58,781 | 39,898 | 8,213 | 4,253 | ||||||||||||
VND | 418,998 | — | 1,375 | — | ||||||||||||
ZAR | 450 | 170 | 6 | 4 |
A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Type | 10% Increase | 10% Decrease | 10% Increase | 10% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 1,197,530 | (887,561 | ) | 887,561 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (1,197,530 | ) | 1,197,530 | (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 December 31, 2019 and 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 Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
In millions of won | ||||||||
Type | 2019 | 2018 | ||||||
Short-term borrowings | 24,235 | |||||||
Long-term borrowings | 2,273,579 | 2,358,860 | ||||||
Debt securities | 243,102 | — | ||||||
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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 years ended December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Type | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 25,167 | (23,831 | ) | 23,831 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (25,167 | ) | 25,167 | (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 years ended December 31, 2019and 2018 are as follows:
In millions of won | 2019 | 2018 | ||||||||||||||
Type | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | (559,390 | ) | 568,420 | (568,420 | ) | |||||||||||
Increase (decrease) of shareholder’s equity (*) | 559,390 | (559,390 | ) | 568,420 | (568,420 | ) |
(*) | The effect on the shareholder’s equity excluding the impact of income taxes. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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.
In millions of won | 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Borrowings and debt securities | 10,977,510 | 27,881,873 | 30,859,669 | 80,399,789 | ||||||||||||||||
Lease liabilities | 686,445 | 617,493 | 1,717,434 | 2,735,681 | 5,757,009 | |||||||||||||||
Trade and other payables | 6,014,054 | 382,809 | 971,469 | 1,176,697 | 8,545,029 | |||||||||||||||
Financial guarantee contracts (*) | 937,091 | 302,186 | 32,314 | 2,066,975 | 3,338,566 | |||||||||||||||
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12,299,954 | 30,603,090 | 36,839,022 | 98,040,393 | |||||||||||||||||
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In millions of won | 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 December 31, 2019 and 2018 are |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
45. | Risk Management, Continued |
(2) | Financial risk management, continued |
The following table shows the details of maturities ofnon-derivative financial liabilities as of December 31, 2019 and 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.
The expected maturities fornon-derivative financial assets as of December 31, 2019 and 2018 in detail are as follows:
In millions of won | 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~5 Years | More than 5 years | Other (*) | Total | |||||||||||||||
Cash and cash equivalents | — | — | — | 1,810,129 | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | — | — | 379,170 | 379,170 | |||||||||||||||
Financial assets at amortized cost | 12,302 | 1,307 | — | — | 13,609 | |||||||||||||||
Loans | 64,081 | 346,583 | 336,502 | 27,606 | 774,772 | |||||||||||||||
Long-term/short-term financial instruments | 1,351,971 | 269,863 | — | 338,393 | 1,960,227 | |||||||||||||||
Financial assets at fair value through profit or loss | 131,385 | 79 | — | 615,797 | 747,261 | |||||||||||||||
Trade and other receivables | 7,703,746 | 980,951 | 818,431 | 207,979 | 9,711,107 | |||||||||||||||
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1,598,783 | 1,154,933 | 1,568,945 | 15,396,275 | |||||||||||||||||
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In millions of won | 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 Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||||||||||
Type | Less than 1 year | 1~2 Years | 2~5 Years | More than 5 years | Total | |||||||||||||||
Net settlement | ||||||||||||||||||||
- Trading | — | — | — | (3,017 | ) | |||||||||||||||
Gross settlement | ||||||||||||||||||||
- Trading | (15,011 | ) | (8,295 | ) | (39,654 | ) | 4,235 | (58,725 | ) | |||||||||||
- Hedging | (59,846 | ) | (21,466 | ) | (1,914 | ) | (33,588 | ) | (116,814 | ) | ||||||||||
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(29,761 | ) | (41,568 | ) | (29,353 | ) | (178,556 | ) | |||||||||||||
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In millions of won | 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Type | Book value | Fair value | Book value | Fair value | ||||||||||||
Assets recognized at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | 379,170 | 399,495 | 399,495 | |||||||||||||
Derivative assets (trading) | 165,204 | 165,204 | 37,631 | 37,631 | ||||||||||||
Derivative assets (applying hedge accounting) | 145,829 | 145,829 | 64,704 | 64,704 | ||||||||||||
Financial assets at fair value through profit or loss | 747,261 | 747,261 | 920,935 | 920,935 | ||||||||||||
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1,437,464 | 1,422,765 | 1,422,765 | ||||||||||||||
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Assets carried at amortized cost | ||||||||||||||||
Financial assets at amortized cost | 13,609 | 14,042 | 14,042 | |||||||||||||
Loans and receivables | 738,707 | 738,707 | 718,674 | 718,674 | ||||||||||||
Trade and other receivables | 9,703,749 | 9,703,749 | 9,613,437 | 9,613,437 | ||||||||||||
Long-term financial instruments | 608,256 | 608,256 | 448,741 | 448,741 | ||||||||||||
Short-term financial instruments | 1,351,971 | 1,351,971 | 1,869,286 | 1,869,286 | ||||||||||||
Cash and cash equivalents | 1,810,129 | 1,810,129 | 1,358,345 | 1,358,345 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
14,226,421 | 14,022,525 | 14,022,525 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities recognized at fair value | ||||||||||||||||
Derivative liabilities (trading) | 53,147 | 99,010 | 99,010 | |||||||||||||
Derivative liabilities (applying hedge accounting) | 116,813 | 116,813 | 213,153 | 213,153 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
169,960 | 312,163 | 312,163 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities carried at amortized cost | ||||||||||||||||
Secured borrowings | 227,135 | 741,029 | 741,029 | |||||||||||||
Unsecured bond | 63,171,664 | 66,917,421 | 56,603,988 | 58,804,070 | ||||||||||||
Lease liabilities | 5,070,133 | 5,070,133 | — | — | ||||||||||||
Finance lease liabilities | — | — | 283,806 | 283,806 | ||||||||||||
Unsecured borrowings | 4,104,523 | 4,113,955 | 3,522,602 | 3,950,517 | ||||||||||||
Trade and other payables (*) | 8,545,029 | 8,545,029 | 9,063,285 | 9,063,285 | ||||||||||||
Bank overdraft | 373,219 | 373,219 | 167,008 | 167,008 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
85,246,892 | 70,381,718 | 73,009,715 | ||||||||||||||
|
|
|
|
|
|
|
|
(*) | Excludes lease liabilities(current year) and finance lease liabilities(prior year) |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 2019 and 2018 are as follows:
Type | 2019 | 2018 | ||
Derivatives | 0.01% ~ 4.16% | 0.02% ~ 4.16% | ||
Borrowings and debt securities | 0.17% ~ 3.90% | 0.51% ~ 5.14% | ||
Leases | 1.38% ~ 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 December 31, 2019 and 2018 are as follows:
In millions of won | 2019 | |||||||||||||||
Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | 177,968 | 379,170 | |||||||||||||
Derivative assets | — | 308,399 | 2,634 | 311,033 | ||||||||||||
Financial assets at fair value through profit or loss | — | 742,105 | 5,156 | 747,261 | ||||||||||||
|
|
|
|
|
| |||||||||||
1,050,504 | 185,758 | 1,437,464 | ||||||||||||||
|
|
|
|
|
| |||||||||||
Financial liabilities at fair value | ||||||||||||||||
Derivative liabilities | 169,960 | — | 169,960 | |||||||||||||
In millions of won | 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 Financial Statements, Continued
December 31, 2019
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 years ended December 31, 2019 and 2018 are as follows:
In millions of won | 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 | — | 64 | — | — | 5,156 | |||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income Unlisted securities | 189,439 | — | 1,876 | — | 3,715 | (19,315 | ) | 2,253 | 177,968 |
In millions of won | 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 Financial Statements, Continued
December 31, 2019
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 December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1~2 years | 120,937 | |||
2~3 years | 50,390 | |||
|
| |||
|
|
(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 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, own and operate 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 December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1~2 years | 28,853 | |||
2~3 years | 28,885 | |||
Over 3 years | 587,972 | |||
|
| |||
|
|
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties |
(1) | Related parties of the Group as of December 31, 2019 are as follows: |
Type | Related party | |
Parent | Republic of Korea government | |
Subsidiaries (119 subsidiaries) | Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd.,KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KOREA Imouraren Uranium Investment Corp., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy, Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., KOSEP USA, Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, 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., VI 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., KEPCO Mangilao America LLC, Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd. | |
Associates (66 associates) | Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green 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., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Korea Nuclear Partners Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., 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 Suwon New Power Co., Ltd., KPG Co., Ltd., Gwangbaek Solar Power Investment Co., Ltd., Goduk Clean Energy Co., Ltd. | |
Joint ventures (64 joint ventures) | Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Jeongam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P.,ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A, PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co.,Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Chile Solar JV SpA, Taebaek Gadeoksan Wind Power Co., Ltd., Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., HORUS SOLAR, S.A. DE C.V., RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V., SUNMEX RENOVABLES, S.A. DE C.V., Stavro Holding II AB | |
Others (3 others) | Korea Development Bank, Ulleungdo Natural Energy Co., Ltd., Garolim Tidal Power Plant Co., Ltd. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(2) | Transactions between the Group and its subsidiaries are eliminated during the consolidation and are not disclosed in the notes. |
(3) | Related party transactions for the years ended December 31, 2019 and 2018 are as follows: |
<Sales and Others>
In millions of won | Sales and others | |||||||||
Company name | Transaction type | 2019 | 2018 | |||||||
<Associates> | ||||||||||
Dongducheon Dream Power Co., Ltd. | Electricity sales | 6,093 | ||||||||
Korea Gas Corporation | Electricity sales | 116,484 | 99,933 | |||||||
Daejung Offshore Wind Power Co., Ltd. | Electricity sales | 1 | 1 | |||||||
Daegu Photovoltaic Co., Ltd. | Electricity sales | 327 | 128 | |||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | Electricity sales | 2 | 2 | |||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 11,085 | 10,422 | |||||||
Goseong Green Energy Co., Ltd. | Electricity sales | 19,245 | 10,024 | |||||||
Gangneung Eco Power Co., Ltd. | Service | 7,446 | 4,928 | |||||||
Shin Pyeongtaek Power Co., Ltd. | Electricity sales | 21,218 | 8,468 | |||||||
Naepo Green Energy Co., Ltd. | Electricity sales | 154 | 160 | |||||||
Noeul Green Energy Co., Ltd. | Electricity sales | 30 | 30 | |||||||
Samcheok Eco Materials Co., Ltd. | Electricity sales | 627 | 605 | |||||||
YTN Co., Ltd. | Electricity sales | 2,257 | 2,043 | |||||||
Busan Green Energy Co., Ltd. | Electricity sales | 18 | 19 | |||||||
Gunsan Bio Energy Co., Ltd. | Electricity sales | 4,755 | 3,611 | |||||||
Korea Electric Vehicle Charging Service | Electricity sales | 1,029 | 578 | |||||||
Tamra Offshore Wind Power Co., Ltd. | Electricity sales | — | 58 | |||||||
Daegu clean Energy Co., Ltd. | Electricity sales | — | 126 | |||||||
Cheongna Energy Co., Ltd. | Service | 9,922 | 11,688 | |||||||
Gangwon Wind Power Co., Ltd. | Electricity sales | 2,433 | 2,402 | |||||||
Gwangyang Green Energy Co., Ltd. | Electricity sales | 122 | 874 | |||||||
Hyundai Green Power Co., Ltd. | Design service | 13,106 | 14,031 | |||||||
Korea Power Exchange | Service | 7,670 | 6,854 | |||||||
Hyundai Energy Co., Ltd. | Service | 3,437 | 1,718 | |||||||
Taebaek Wind Power Co., Ltd. | Service | 991 | 614 | |||||||
Taeback Guinemi Wind Power Co., Ltd. | Electricity sales | 77 | — | |||||||
Pyeongchang Wind Power Co., Ltd. | Design service | 1,189 | 1,166 | |||||||
Daeryun Power Co., Ltd. | Electricity sales | 1,879 | 1,731 | |||||||
Changjuk Wind Power Co., Ltd. | Electricity sales | 927 | 758 | |||||||
GS Donghae Power Co., Ltd. | Electricity sales | 15,792 | 7,238 | |||||||
KNH Solar Co., Ltd. | Electricity sales | 17 | 17 | |||||||
S-Power Co., Ltd. | Service | 6,535 | 9,118 | |||||||
PND solar CO., Ltd. | Electricity sales | 407 | 12 | |||||||
Hyundai Ecoenergy Co., Ltd. | Electricity sales | 117 | — | |||||||
YeongGwang Yaksu Wind Electric. Co., Ltd. | Electricity sales | 81 | — | |||||||
Korea Energy Solution Co., Ltd. | Electricity sales | 52 | — | |||||||
Suwon New Power Co., Ltd. | Electricity sales | 5,606 | — | |||||||
9 Associates (Overseas) | Electricity sales and others | 98,450 | 60,318 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(3) | Related party transactions for the years ended December 31, 2019 and 2018 are as follows, continued: |
<Sales and Others>
In millions of won | Sales and others | |||||||||
Company name | Transaction type | 2019 | 2018 | |||||||
<Joint ventures> | ||||||||||
Daegu Green Power Co., Ltd. | Electricity sales | 1,022 | ||||||||
KAPES, Inc. | Commission | 504 | 648 | |||||||
Dangjin Eco Power Co., Ltd. | Technical fee | 4 | 3,424 | |||||||
Honam Wind Power Co., Ltd. | Electricity sales | 657 | 415 | |||||||
Jeongam Wind Power Co., Ltd. | Electricity sales | 1,198 | 724 | |||||||
Korea Power Engineering Service Co., Ltd. | Service | 348 | 840 | |||||||
Seokmun Energy Co., Ltd. | Service | 1,495 | 1,897 | |||||||
Incheon New Power Co., Ltd. | Construction revenue | 354 | 568 | |||||||
Chun-cheon Energy Co., Ltd. | Electricity sales | 2,397 | 2,471 | |||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | Electricity sales | 1,744 | 1,540 | |||||||
Yeonggwang Wind Power Co., Ltd. | Electricity sales | 705 | 46 | |||||||
KW Nuclear Components Co., Ltd. | Service | 721 | 839 | |||||||
KEPCO-Uhde Inc. | Electricity sales | 15 | 17 | |||||||
Busan Shinho Solar Power Co., Ltd. | Electricity sales | 452 | 362 | |||||||
Daesan Green Energy Co., Ltd. | Electricity sales | 39 | — | |||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | Electricity sales | 6 | — | |||||||
Saemangeum Solar Power Co., Ltd. | Service | 2,230 | — | |||||||
Jaeun Resident Wind Power Plant Co., Ltd. | Electricity sales | 105 | — | |||||||
25 Joint ventures (Overseas) | Electricity sales and others | 1,275,279 | 206,054 | |||||||
<Others> | ||||||||||
Yeongwol Energy Station Co., Ltd. | Service | — | 373 | |||||||
DS POWER Co., Ltd. | Service | — | 565 | |||||||
Ulleungdo Natural Energy Co., Ltd. | Service | — | 292 | |||||||
Korea Development Bank | Electricity sales | 3,948 | 3,524 | |||||||
Interest income | 2,091 | 4,438 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(3) | Related party transactions for the years ended December 31, 2019 and 2018 are as follows, continued: |
<Purchase and Others>
In millions of won | Purchase and others | |||||||||
Company name | Transaction type | 2019 | 2018 | |||||||
<Associates> | ||||||||||
Dongducheon Dream Power Co., Ltd. | Electricity sales | 828,547 | ||||||||
Korea Gas Corporation | Electricity sales | 4,049,486 | 5,191,243 | |||||||
Daegu Photovoltaic Co., Ltd. | Electricity sales | 3,626 | 3,745 | |||||||
Heang Bok Do Si Photovoltaic Power Co., Ltd. | Electricity sales | 450 | 455 | |||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 245,057 | 261,668 | |||||||
Goseong Green Energy Co., Ltd. | Electricity sales | 32 | — | |||||||
Gangneung Eco Power Co., Ltd. | Service | — | 19 | |||||||
Shin Pyeongtaek Power Co., Ltd. | Electricity sales | 119,162 | — | |||||||
Noeul Green Energy Co., Ltd. | Electricity sales | 22,767 | 18,282 | |||||||
Samcheok Eco Materials Co., Ltd. | Electricity sales | 9,425 | 3,819 | |||||||
YTN Co., Ltd. | Electricity sales | 333 | 322 | |||||||
Busan Green Energy Co., Ltd. | Electricity sales | 13,811 | 25,123 | |||||||
Gunsan Bio Energy Co., Ltd. | Electricity sales | 3,022 | — | |||||||
Korea Electric Vehicle Charging Service | Electricity sales | 536 | 605 | |||||||
Tamra Offshore Wind Power Co., Ltd. | Electricity sales | — | 8,371 | |||||||
Cheongna Energy Co., Ltd. | Service | 58,747 | 58 | |||||||
YaksuESS Co., Ltd | Service | 1,191 | — | |||||||
Gangwon Wind Power Co., Ltd. | Electricity sales | 24,116 | 25,407 | |||||||
Hyundai Green Power Co., Ltd. | Design service | 507,662 | 480,815 | |||||||
Korea Power Exchange | Service | 120,509 | 137,489 | |||||||
Hyundai Energy Co., Ltd. | Service | 2,847 | 3,445 | |||||||
Taebaek Wind Power Co., Ltd. | Service | 7,070 | 8,582 | |||||||
Taeback Guinemi Wind Power Co., Ltd. | Electricity sales | 349 | — | |||||||
Pyeongchang Wind Power Co., Ltd. | Design service | 5,188 | 6,994 | |||||||
Daeryun Power Co., Ltd. | Electricity sales | 144,862 | 184,063 | |||||||
Changjuk Wind Power Co., Ltd. | Electricity sales | 6,994 | 7,929 | |||||||
GS Donghae Electric Power Co., Ltd. | Electricity sales | 681,379 | 780,233 | |||||||
KNH Solar Co., Ltd. | Electricity sales | 3,377 | 3,586 | |||||||
S-Power Co., Ltd. | Service | 522,469 | 507,875 | |||||||
Hadong Mineral Fiber Co., Ltd. | Commission | — | 60 | |||||||
Green Biomass Co., Ltd. | Woodchip purchase | — | 440 | |||||||
PND solar., Ltd | Service | 557 | — | |||||||
Hyundai Ecoenergy Co., Ltd. | Electricity sales | 6,810 | — | |||||||
YeongGwang Yaksu Wind Electric. Co., Ltd | Electricity sales | 6,511 | 2,437 | |||||||
Korea Energy Solution Co., Ltd. | Electricity sales | 15 | — | |||||||
9 Associates (Overseas) | Electricity sales and others | — | 31 | |||||||
<Joint ventures> | ||||||||||
Daegu Green Power Co., Ltd. | Electricity sales | 296,464 | 287,008 | |||||||
KAPES, Inc. | Commission | 142,511 | 77,758 | |||||||
Honam Wind Power Co., Ltd. | Electricity sales | 5,306 | 7,700 | |||||||
Korea Power Engineering Service Co., Ltd. | Service | 1,774 | 1,765 | |||||||
Seokmun Energy Co., Ltd. | Service | 26,370 | 31,759 | |||||||
Chun-cheon Energy Co., Ltd. | Electricity sales | 313,471 | 320,954 | |||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | Electricity sales | 11,739 | 11,366 | |||||||
Yeonggwang Wind Power Co., Ltd. | Electricity sales | 11,940 | — | |||||||
Busan Shinho Solar Power Co., Ltd. | Electricity sales | 7,843 | 7,901 | |||||||
Global Trade Of Power System Co., Ltd. | Electricity sales | 502 | 565 | |||||||
Expressway Solar-light Power Generation Co., Ltd. | Service | 3,067 | 3,513 | |||||||
25 Joint ventures (Overseas) | Electricity sales and others | 7,232 | 1,404 | |||||||
<Others> | ||||||||||
Yeongwol Energy Station Co., Ltd. | Service | — | 4,019 | |||||||
Ulleungdo Natural Energy Co., Ltd. | Service | — | 63 | |||||||
Korea Development Bank | Interest expense | 4,063 | 5,043 | |||||||
Dividends paid | 20 | 166,876 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of December 31, 2019 and 2018 are as follows: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | 2019 | 2018 | 2019 | 2018 | |||||||||||||
<Associates> | ||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | Trade receivables | 332 | — | — | ||||||||||||||
Non-trade receivables and others | 267 | 298 | — | — | ||||||||||||||
Trade payables | — | — | 85,920 | 74,651 | ||||||||||||||
Non-trade payables and others | — | — | 12 | 10 | ||||||||||||||
Korea Gas Corporation | Trade receivables | 9,267 | 9,439 | — | — | |||||||||||||
Non-trade receivables and others | 38 | 498 | — | — | ||||||||||||||
Trade payables | — | — | 462,138 | 601,092 | ||||||||||||||
Non-trade payables and others | — | — | 560 | 314 | ||||||||||||||
Daegu Photovoltaic Co., Ltd. | Trade payables | — | — | 69 | 83 | |||||||||||||
Korea Power Engineering Service Co., Ltd. | Trade receivables | 74 | — | — | — | |||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | Trade receivables | 243 | 278 | — | — | |||||||||||||
Non-trade receivables and others | 43 | 51 | — | — | ||||||||||||||
Trade payables | — | — | 3,756 | — | ||||||||||||||
Non-trade payables and others | — | — | 3,827 | 13,102 | ||||||||||||||
Goseong Green Energy Co., Ltd. | Trade receivables | 103 | — | — | — | |||||||||||||
Non-trade receivables and others | 5,285 | — | — | — | ||||||||||||||
Non-trade payables and others | — | — | 65,626 | 43,020 | ||||||||||||||
Gangneung Eco Power Co., Ltd. | Trade receivables | 115 | 1 | — | — | |||||||||||||
Non-trade receivables and others | 65 | 99 | — | — | ||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Trade receivables | 1,013 | 123 | — | — | |||||||||||||
Non-trade receivables and others | 2,281 | 242 | — | — | ||||||||||||||
Trade payables | — | — | 64,696 | — | ||||||||||||||
Non-trade payables and others | — | — | 61 | 82 | ||||||||||||||
Naepo Green Energy Co., Ltd. | Trade receivables | 18 | 17 | — | — | |||||||||||||
Noeul Green Energy Co., Ltd. | Trade receivables | 3 | 3 | — | — | |||||||||||||
Non-trade payables and others | — | — | 1,855 | 8,774 | ||||||||||||||
Samcheok Eco Materials Co., Ltd. | Trade receivables | 59 | 61 | — | — | |||||||||||||
YTN Co., Ltd. | Trade receivables | 97 | 98 | — | — | |||||||||||||
Non-trade payables and others | — | — | — | 11 | ||||||||||||||
Busan Green Energy Co., Ltd. | Trade receivables | 1 | 1 | — | — | |||||||||||||
Non-trade payables and others | — | — | 606 | 10,882 | ||||||||||||||
Gunsan Bio Energy Co., Ltd. | Non-trade receivables and others | — | 3,458 | — | — | |||||||||||||
Korea Electric Vehicle Charging Service | Trade receivables | 137 | 69 | — | — | |||||||||||||
Non-trade receivables and others | 529 | 354 | — | — | ||||||||||||||
Non-trade payables and others | — | — | — | 56 | ||||||||||||||
Daegu Clean Energy Co., Ltd. | Non-trade receivables and others | — | 17 | — | — | |||||||||||||
Cheongna Energy Co., Ltd. | Trade receivables | 1,074 | 183 | — | — | |||||||||||||
Yaksu ESS Co., Ltd. | Trade payables | — | — | 525 | — | |||||||||||||
Gangwon Wind Power Co., Ltd. | Trade receivables | 7 | 10 | — | — | |||||||||||||
Trade payables | — | — | 2,979 | 2,547 | ||||||||||||||
Gwangyang Green Energy Co,. Ltd. | Non-trade receivables and others | 1,334 | — | — | — | |||||||||||||
Hyundai Green Power Co., Ltd. | Trade receivables | 502 | 390 | — | — | |||||||||||||
Trade payables | — | — | 41,587 | 38,072 | ||||||||||||||
Korea Power Exchange | Trade receivables | 1,142 | 847 | — | — | |||||||||||||
Non-trade receivables and others | 114 | 229 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 4,160 | 1,214 | ||||||||||||||
Hyundai Energy Co., Ltd. | Trade receivables | 128 | 57 | — | — | |||||||||||||
Non-trade receivables and others | 12,532 | 9,664 | — | — | ||||||||||||||
Trade payables | — | — | 175 | 259 | ||||||||||||||
Non-trade payables and others | — | — | 9,178 | 8,021 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | 2019 | 2018 | 2019 | 2018 | |||||||||||||
<Associates> | ||||||||||||||||||
Ecollite Co., Ltd. | Non-trade receivables and others | 210 | — | — | ||||||||||||||
Taebaek Wind Power Co., Ltd. | Trade payables | — | — | 358 | 453 | |||||||||||||
Non-trade payables and others | — | — | 243 | 291 | ||||||||||||||
Taebaek Guinemi Wind Power Co., Ltd. | Non-trade receivables and others | 2 | — | — | — | |||||||||||||
Trade payables | — | — | 190 | — | ||||||||||||||
Pyeongchang Wind Power Co., Ltd. | Trade receivables | 4 | 4 | — | — | |||||||||||||
Non-trade payables | — | — | — | 25 | ||||||||||||||
Daeryun Power Co., Ltd. | Trade receivables | 144 | 178 | — | — | |||||||||||||
Trade payables | — | — | 19,843 | 15,845 | ||||||||||||||
Changjuk Wind Power Co., Ltd. | Trade payables | — | — | 447 | 455 | |||||||||||||
Non-trade payables and others | — | — | 280 | 273 | ||||||||||||||
GS Donghae Electric power Co., Ltd. | Trade receivables | 175 | 245 | — | — | |||||||||||||
Non-trade receivables and others | 367 | 2,537 | — | — | ||||||||||||||
Trade payables | — | — | 69,811 | 69,820 | ||||||||||||||
Non-trade payables and others | — | — | 16 | 59 | ||||||||||||||
KNH Solar Co., Ltd. | Trade receivables | 1 | 1 | — | — | |||||||||||||
S-Power Co., Ltd. | Trade receivables | 89 | 922 | — | — | |||||||||||||
Non-trade receivables and others | 43 | 34 | — | — | ||||||||||||||
Trade payables | — | — | 53,705 | 56,897 | ||||||||||||||
Non-trade payables and others | — | — | — | 16 | ||||||||||||||
PND solar., Ltd. | Trade receivables | — | 3 | — | — | |||||||||||||
Hyundai Ecoenergy Co., Ltd. | Trade receivables | 16 | — | — | — | |||||||||||||
YeongGwang Yaksu Wind Electric. Co., Ltd. | Trade receivables | 5 | — | — | — | |||||||||||||
Trade payables | — | — | — | 2,679 | ||||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | Trade receivables | 1 | — | — | — | |||||||||||||
Suwon New Power Co., Ltd. | Non-trade receivables and others | 2,939 | — | — | — | |||||||||||||
4 Associates (Overseas) | Non-trade receivables and others | 1,112 | 455 | — | — | |||||||||||||
<Joint ventures> | ||||||||||||||||||
Daegu Green Power Co., Ltd. | Trade receivables | 113 | 110 | — | — | |||||||||||||
Non-trade receivables and others | 1 | 12 | — | — | ||||||||||||||
Trade payables | — | — | 28,980 | 32,609 | ||||||||||||||
KAPES, Inc. | Trade receivables | 1 | — | — | — | |||||||||||||
Non-trade receivables and others | — | 253 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 50,738 | 338 | ||||||||||||||
Dangjin Eco Power Co., Ltd. | Trade receivables | 2 | — | — | — | |||||||||||||
Non-trade receivables and others | — | 18 | — | — | ||||||||||||||
Honam Wind Power Co., Ltd. | Trade payables | — | — | 347 | 432 | |||||||||||||
Non-trade payables | — | — | 1,671 | 3,573 | ||||||||||||||
Jeongam Wind Power Co., Ltd. | Trade receivables | 165 | 151 | — | — | |||||||||||||
Non-trade payables and others | — | — | 6 | 2 | ||||||||||||||
Korea Power Engineering Service Co.,Ltd. | Non-trade receivables | 74 | — | — | — | |||||||||||||
Seokmun Energy Co., Ltd. | Trade receivables | 51 | 39 | — | — | |||||||||||||
Non-trade receivables | 136 | 303 | — | — | ||||||||||||||
Non-trade payables | — | — | 4,750 | 5,043 | ||||||||||||||
Incheon New Power Co., Ltd. | Trade receivables | — | 128 | — | — | |||||||||||||
Chun-cheon Energy Co., Ltd. | Trade receivables | 260 | 20 | — | — | |||||||||||||
Non-trade receivables and others | 5,362 | 308 | — | — | ||||||||||||||
Trade payables | — | — | 23,438 | 33,796 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. Related | Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of December 31, 2019 and 2018 are as follows, continued: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | 2019 | 2018 | 2019 | 2018 | |||||||||||||
<Joint ventures> | ||||||||||||||||||
Yeonggwangbaeksu Wind Power | Trade receivables | 7 | — | — | ||||||||||||||
Co., Ltd. | Non-trade receivables | 157 | — | — | — | |||||||||||||
Trade payables | — | — | 671 | 736 | ||||||||||||||
Non-trade payables | — | — | 1,526 | 789 | ||||||||||||||
Yeonggwang Wind Power Co., Ltd. | Trade receivables | 10 | 10 | — | — | |||||||||||||
Non-trade receivables and others | 54 | — | — | — | ||||||||||||||
Non-trade payables and others | — | — | 2,432 | — | ||||||||||||||
KW Nuclear Components Co., Ltd. | Trade receivables | 4 | 4 | — | — | |||||||||||||
Non-trade receivables and others | 15 | 31 | — | — | ||||||||||||||
KEPCO-Uhde Inc. | Non-trade payables | — | — | 9 | 4 | |||||||||||||
Busan Shinho Solar Power Co., Ltd. | Trade receivables | 2 | 2 | — | — | |||||||||||||
Trade payables | — | — | 148 | 175 | ||||||||||||||
Non-trade payables | — | — | 733 | 717 | ||||||||||||||
Daesan Green Energy Co., Ltd. | Trade receivables | 6 | — | — | — | |||||||||||||
Cheong-Song Noraesan Wind Power Co., Ltd. | Trade receivables | 1 | — | — | — | |||||||||||||
Saemangeum Solar Power Co., Ltd. | Non-trade receivables and others | 2,197 | — | — | — | |||||||||||||
14 Joint ventures (Overseas) | Trade receivables | 51,700 | 30,208 | — | — | |||||||||||||
Non-trade receivables and others | 13,652 | 740 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 87,404 | 18,379 | ||||||||||||||
<Others> | ||||||||||||||||||
Korea Development Bank | Accrued interest income | 1,630 | 1,147 | — | — | |||||||||||||
Non-trade receivables and others | 146,416 | 12,125 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 152 | 218 | ||||||||||||||
Derivatives | 41,368 | 27,306 | 6,531 | 18,095 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. Related | Parties, Continued |
(5) | Loans and others arising from related party transactions as of December 31, 2019 and 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. | 132 | — | 910 | 28,676 | ||||||||||||||||||
(Allowance for doubtful accounts) | (6,065 | ) | — | — | (1,260 | ) | (7,325 | ) | ||||||||||||||
Associates | PT. Cirebon Electric Power | 8,696 | — | (8,900 | ) | 782 | 578 | |||||||||||||||
Associates | Xe-PianXe-Namnoy Power Co., Ltd. | 1,413 | 20,148 | — | (606 | ) | 20,955 | |||||||||||||||
Associates | PT. Wampu Electric Power | 14,880 | — | — | 1,622 | 16,502 | ||||||||||||||||
Associates | Gunsan Bio Energy Co., Ltd. | 9,396 | 3,000 | — | — | 12,396 | ||||||||||||||||
(Allowance for doubtful accounts) | — | (10,128 | ) | — | — | (10,128 | ) | |||||||||||||||
Associates | Hyundai Energy Co., Ltd. | 2,465 | — | — | — | 2,465 | ||||||||||||||||
(Allowance for doubtful accounts) | (2,465 | ) | — | — | — | (2,465 | ) | |||||||||||||||
Joint ventures | Recursos Solares PV de Mexico II SA DE CV | — | 1,054 | — | 1 | 1,055 | ||||||||||||||||
Joint ventures | Horus Solar SA DE CV | — | 3,320 | — | 3 | 3,323 | ||||||||||||||||
Joint ventures | SUNMEX RENOVABLES SA DE CV | — | 144 | — | — | 144 | ||||||||||||||||
Joint ventures | Kelar S.A | 48,694 | — | (8,320 | ) | 1,784 | 42,158 | |||||||||||||||
Joint ventures | Chester Solar IV SpA | — | 1,688 | (1,688 | ) | — | — | |||||||||||||||
Joint ventures | Chester Solar V SpA | — | 535 | (535 | ) | — | — | |||||||||||||||
Joint ventures | Diego de Almagro Solar SpA | — | 2,101 | (2,101 | ) | — | — | |||||||||||||||
Joint ventures | Chun-cheon Energy Co., Ltd. | 616 | 4,441 | — | — | 5,057 | ||||||||||||||||
Joint ventures | Dangjin Eco Power Co., Ltd. (before thespin-off) | — | 2,600 | (2,600 | ) | — | — | |||||||||||||||
Joint ventures | DE energia SpA | — | 6,799 | — | (167 | ) | 6,632 | |||||||||||||||
Joint ventures | Eumseong Natural Gas Power Co., Ltd. (*1) | — | 20,000 | (20,000 | ) | — | — | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
55,834 | (44,144 | ) | 3,069 | 120,023 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | Eumseong Natural Gas Power Co., Ltd. was established byspin-off from Dangjin Eco Power Co., Ltd. and merged by the Group during the year ended December 31, 2019. |
(6) | Borrowings arising from related party transactions as of December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||||||||||||||||
Related parties | Type | Beginning balance | Borrowings | Repayment | Others | Ending balance | ||||||||||||||||
Korea Development | Facility | 5,700 | (12,648 | ) | — | 59,845 | ||||||||||||||||
Bank | Others | 4,154 | — | (654 | ) | — | 3,500 | |||||||||||||||
Operating funds | 81,000 | 172,442 | (73,992 | ) | (450 | ) | 179,000 | |||||||||||||||
Syndicated Loan | 17,277 | — | (1,055 | ) | 863 | 17,085 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. Related | Parties, Continued |
(7) Guarantees | provided to related parties as of December 31, 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 | Shuweihat Asia Power Investment B.V. | ||||
Korea Electric Power Corporation | Rabigh Operation & Maintenance Company Limited | Performance guarantees and others | USD 1,387 | Rabigh Electricity Company | ||||
Korea Electric Power Corporation | Nghi Son 2 Power LLC | Performance guarantees | USD 70,000 | SMBC Ho Chi Minh and others | ||||
Korea Electric Power Corporation | Barakah One Company | Debt guarantees | USD 900,000 | Export-Import Bank of Korea and others | ||||
Performance guarantees and others | USD 4,430,240 | |||||||
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 | EPS Renewables Holdings, LLC, Santander Bank and others |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of December 31, 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 Electric Power Corporation | Rabigh Electricity Company | Performance guarantees | SAR 6,508 | Hana Bank | ||||||
Korea Electric Power Corporation | Debt guarantees | SAR 80,000 | ||||||||
Korea Electric Power Corporation | Shuweihat Asia Power Investment B.V. | Performance guarantees | USD 100,000 | ING Bank | ||||||
Korea Electric Power Corporation | Amman Asia Electric Power Company | |||||||||
Korea Western Power Co., Ltd. | Cheongna Energy Co., Ltd. | Collateralized money invested | KRW 1,411 | Hana Bank and others | ||||||
Guarantees for supplemental funding and others (*1) | — | |||||||||
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 72,935 | |||||||||
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 2,060 | Korea Development Bank | ||||||
Korea Western Power Co., Ltd. | Dongducheon Dream Power Co., Ltd. | Collateralized money invested (*7) Debt guarantees | | KRW 41,531 KRW 20,300 |
| Kookmin Bank and others BNK Securities and others | ||||
Korea Western Power Co., Ltd. | PT. Mutiara Jawa | Collateralized money invested | KRW 1,438 | Woori Bank | ||||||
Korea Western Power Co., Ltd. | Haeng Bok Do Si Photovoltaic Power Co., Ltd. | Collateralized money invested | KRW 215 | Nonghyup Bank | ||||||
Korea Western Power Co., Ltd. | Shin Pyeongtaek Power Co., Ltd. | Collateralized money invested | KRW 66,956 | Kookmin Bank | ||||||
Guarantees for supplemental funding (*1) | — | Kookmin Bank and others | ||||||||
Korea East-West Power Co., Ltd. | Busan Shinho Solar Power Co., Ltd. | Collateralized money invested | KRW 5,045 | Korea Development Bank and others | ||||||
Korea East-West Power Co., Ltd. | Seokmun Energy Co., Ltd. | Collateralized money invested | KRW 17,342 | Kookmin Bank and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea East-West Power Co., Ltd. | Chun-cheon Energy Co., Ltd. | Collateralized money invested | KRW 34,872 | 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 4,375 | Shinhan Bank and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea East-West Power Co., Ltd. | GS Donghae Electric Power Co., Ltd. | Collateralized money invested | KRW 255,983 | Korea Development Bank and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea East-West Power Co., Ltd. | Yeonggwangbaeksu Wind Power Co., Ltd. | Collateralized money invested | KRW 3,040 | Kookmin Bank and others | ||||||
Korea East-West Power Co., Ltd. | Yeonggwang Wind Power Co., Ltd. | Collateralized money invested | KRW 17,627 | KDB Capital Corporation and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea East-West Power Co., Ltd. | Daesan Green Energy Co., Ltd. | Collateralized money invested | KRW 17,182 | IBK | ||||||
Guarantees for supplemental funding (*1) | KRW 18,989 | IBK | ||||||||
Korea East-West Power Co., Ltd. | Taebaek Gadeoksan Wind Power Co., Ltd. | Collateralized money invested | KRW 7,846 | Samsung Fire & Marine Insurance Co., Ltd. and others | ||||||
Korea East-West Power Co., Ltd. | PT. Tanjung Power Indonesia | Debt guarantees | USD 24,544 | Sumitomo mitsui banking | ||||||
Other guarantees | USD 3,150 | PT Adaro Indonesia | ||||||||
Guarantees for supplemental funding (*1) | — | Sumitomo mitsui banking and others | ||||||||
Collateralized money invested | KRW 34,327 | MUFG and others |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of December 31, 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 East-West Power Co., Ltd. | South Jamaica Power Company Limited | Performance guarantees | USD 14,400 | Societe Generale | ||||||
Collateralized money invested | KRW 13,863 | JCSD Trustee Services Limited and others | ||||||||
EWP Barbados 1 SRL | South Jamaica Power Company Limited | Guarantees for supplemental funding (*1, 3) | — | JCSD Trustee Services Limited and others | ||||||
Korea East-West Power Co., Ltd. | DE Energia SpA | Collateralized money invested | KRW 8,665 | Mirae Asset Daewoo Co., Ltd. and others | ||||||
Korea East-West Power Co., Ltd. | Debt guarantees | KRW 6,632 | ||||||||
Korea Southern Power Co., Ltd. | KNH Solar Co., Ltd. | Collateralized money invested | KRW 2,382 | 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 26,247 | Korea Development Bank and others | ||||||
Guarantees for supplemental funding and others (*1) | KRW 8,000 | |||||||||
Korea Southern Power Co., Ltd. | Daegu Green Power Co., Ltd. | Collateralized money invested | KRW 22,824 | Shinhan Bank and others | ||||||
Performance guarantees | — | |||||||||
Korea Southern Power Co., Ltd. | Kelar S.A | Performance guarantees | USD 61,692 | Hana Bank, MUFG | ||||||
Korea Southern Power Co., Ltd. | Daehan Wind Power PSC | Debt guarantees (*9) | USD 16,000 | Shinhan Bank | ||||||
Performance guarantees | USD 3,600 | |||||||||
Debt guarantees (*9) | USD 240 | |||||||||
Performance Debt guarantees (*9) | USD 1,898 | Hana Bank | ||||||||
Korea Southern Power Co., Ltd. | Pyeongchang Wind Power Co., Ltd. | Collateralized money invested | KRW 5,877 | Woori Bank and Shinhan Bank and others | ||||||
Performance guarantees | — | |||||||||
Korea Southern Power Co., Ltd. | Taebaek Guinemi Wind Power Co., Ltd. | Collateralized money invested | KRW 2,553 | IBK | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea Southern Power Co., Ltd. | Jeongam Wind Power Co., Ltd. | Guarantees for supplemental funding (*1) and performance guarantees | — | SK Securities.Co., LTD., IBK, and others | ||||||
Collateralized money invested | KRW 4,437 | |||||||||
Korea Southern Power Co., Ltd. | Taebaek Wind Power Co., Ltd. | Guarantees for supplemental funding (*1) | — | Shinhan Bank and others | ||||||
Korea Southern Power Co., Ltd. | Samcheok Eco Materials Co., Ltd. | Payment guarantees (*47) | — | SEM Investment Co., Ltd. | ||||||
Kospo Chile SpA | Kelar S.A. | Collateralized money invested | KRW 70,462 | Export-Import Bank of Korea and others | ||||||
Chester Solar ISpA | Collateralized money invested | KRW 1,157 | IBK | |||||||
Chester Solar IV SpA | Collateralized money invested | KRW 672 | ||||||||
Chester Solar V SpA | Collateralized money invested | KRW 146 | ||||||||
Diego de Almagro Solar Spa | Collateralized money invested | KRW 1,035 | ||||||||
Laurel SpA | Collateralized money invested | KRW 595 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
Korea Midland Power Co., Ltd. | YeongGwang Yaksu Wind Electric. Co., Ltd. | Collateralized money invested | KRW 386 | IBK and others | ||||||
Korea Midland Power Co., Ltd. | Hyundai Green Power Co., Ltd. | Collateralized money invested | KRW 124,253 | 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. | Green Energy Electricity Generation Co., Ltd. | Collateralized money invested | KRW 163 | IBK | ||||||
Guarantees for supplemental funding and others (*1) | — | IBK and others | ||||||||
Korea Midland Power Co., Ltd. | YaksuESS Co., Ltd. | Collateralized money invested | KRW 516 | IBK | ||||||
Korea Midland Power Co., Ltd. | Namjeongsusang Solar Power Operatin Co., Ltd. | Collateralized money invested | KRW 812 | IBK |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
47. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of December 31, 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 Midland Power Co., Ltd. | Gwangbaek Solar Power Investment Co., Ltd. | Collateralized money invested | KRW 2,054 | IBK | ||||||
Korea South-East Power Co., Ltd. | Hyundai Energy Co., Ltd. | Collateralized money invested (*5) | — | IBK | ||||||
Guarantees for supplemental funding and others (*1,6) | KRW 76,800 | NH investment & securities Co., Ltd. and others | ||||||||
Korea South-East Power Co., Ltd. | S-Power Co., Ltd. | Collateralized money invested | KRW 115,784 | Korea Development Bank and others | ||||||
Korea South-East Power Co., Ltd. | RES Technology AD | Collateralized money invested | KRW 16,248 | UniCredit Bulbank and others | ||||||
Korea South-East Power Co., Ltd. | ASM-BG Investicii AD | Collateralized money invested | KRW 19,376 | UniCredit Bulbank and others | ||||||
Korea South-East Power Co., Ltd. | Expressway Solar-light Power Generation Co., Ltd. | Guarantees for supplemental | KRW 2,500 | Woori Bank | ||||||
Korea South-East Power Co., Ltd. | Goseong Green Energy Co., Ltd. | Collateralized money invested | KRW 2,340 | Kyobo Life Insurance Co., Ltd. and others | ||||||
Korea South-East Power Co., Ltd. | Gangneung Eco Power Co., Ltd. | Collateralized money invested | KRW 2,430 | Kyobo Life Insurance Co., Ltd. and others | ||||||
Korea South-East Power Co., Ltd. | PND solar., Ltd. | Collateralized money invested | KRW 1,144 | IBK | ||||||
Korea South-East Power Co., Ltd. | Hyundai Eco Energy Co., Ltd. | Collateralized money invested | KRW 3,781 | Samsung Life Insurance and others | ||||||
Korea South-East Power Co., Ltd. | Jaeun Resident Wind Power Plant Co., Ltd. | Collateralized money invested | KRW 2,198 | IBK | ||||||
Korea South-East Power Co., Ltd. | Cheongsong Myeonbongsan Wind Power Plant Co., Ltd. | Collateralized money invested | KRW 2,764 | Kyobo Life Insurance Co., Ltd. and others | ||||||
Korea Hydro & Nuclear Power Co., Ltd. | Noeul Green Energy Co., Ltd. | Collateralized money invested | KRW 6,611 | Hana Bank and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea Hydro & Nuclear Power Co., Ltd. | Busan Green Energy Co., Ltd. | Collateralized money invested | KRW 10,636 | Shinhan Bank and others | ||||||
Korea Hydro & Nuclear Power Co., Ltd. | Cheong-Song Noraesan Wind Power Co., Ltd. | Collateralized money invested | KRW 3,044 | Woori Bank and others | ||||||
Guarantees for supplemental funding (*1) | — | |||||||||
KEPCO Plant Service & Engineering Co., Ltd. | Incheon New Power Co., Ltd. | Collateralized money invested (*8) | — | Shinhan Bank | ||||||
Guarantees for supplemental funding (*1) | — |
(*1) | The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings. |
(*2) | The Group has granted the right to Hana Financial Investment Co., Ltd., as an agent for the creditors to Expressway Solar-light Power Generation Co., Ltd. (“ESPG”), to the effect that in the event of acceleration of ESPG’s payment obligations under certain borrowings to such creditors, Hana Financial may demand the Group to dispose of shares in ESPG held by the Group and apply the resulting proceeds to repayment of ESPG’s obligations. |
(*3) | 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 18,400,000 and there is no residual guarantee amount among total collateral limit. |
(*4) | Controlling andnon-controlling common shareholders of Samcheok Eco Materials Co., Ltd. havepre-emption rights, if preferred shareholders intend to sell their shares until December 23, 2020. And promised yield of the preferred stock is guaranteed through the transaction. As of December 31, 2019, the Group has recognized derivative liabilities of |
(*5) | 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 |
(*6) | Pursuant to the guarantee agreement, the Group recognized other provisions of |
(*7) | The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
(*8) | The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. during the year ended December 31, 2019, and the acquisition cost of the securities provided as collateral is |
(*9) | The Group provided a payment guarantee to Daehan Wind Power PSC for reimbursement of Equity Bridge Loan(EBL), opening LC for Debt Service Reserve Account(DSRA), guarantee for the swap termination costs and others. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
1. | Related Parties, Continued |
(8) | As of December 31, 2019, there is no financial guarantee provided by related parties. |
(9) | Derivatives transactions with related parties as of December 31, 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 | % | ||||||||||||||||||
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 | 2017.12.27 | 2021.07.12 | USD 100,000 | |||||||||||||||||
Bank | 2019.12.11 | 2020.01.15 | 11,925 | USD 10,000 | 1,192.50 | |||||||||||||||
2019.12.30 | 2020.01.23 | 4,630 | USD 4,000 | 1,157.40 |
(10) | The Group considers executive directors and executive head officer in charge of planning, operation, control of business activity as the key members of management. Salaries and other compensations to the key members of management of the Group for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||
Type | 2019 | 2018 | ||||||
Salaries | 1,106 | |||||||
Employee benefits | 31 | 24 | ||||||
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1,130 | ||||||||
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
48. | Non-Cash Transactions |
(1) | Significantnon-cash transactions for the years ended December 31, 2019 and 2018 are as follows: |
In millions of won | ||||||||
Transactions | 2019 | 2018 | ||||||
Transfer fromconstruction-in-progress to other assets | 8,656,252 | |||||||
Recognition of asset retirement cost and related provision for decommissioning costs | 2,425,668 | 310,272 | ||||||
Transfer from provision for disposal of used nuclear fuel to accrued expenses | 376,103 | 482,698 | ||||||
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities | 7,759,284 | 7,100,846 | ||||||
Transfer ofright-of-use assets due to change in accounting policy | 5,364,647 | — |
(2) | Changes in liabilities incurred from financing activities for the years ended December 31, 2019, and 2018 are as follows: |
In millions of won | 2019 | |||||||||||||||||||||||||||
Non-cash changes | ||||||||||||||||||||||||||||
Beginning balance | Cash flows | Increase | Changes in accounting policies | Effect of exchange rate fluctuations and others | Increase from the business combination | Ending balance | ||||||||||||||||||||||
Borrowings and debt securities | 6,342,074 | — | — | 496,940 | 2,900 | 67,876,540 | ||||||||||||||||||||||
Lease liabilities | 283,806 | (573,437 | ) | 218,800 | 4,943,584 | 197,380 | — | 5,070,133 | ||||||||||||||||||||
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5,766,877 | 218,800 | 4,943,584 | 694,080 | 2,900 | 72,946,673 | |||||||||||||||||||||||
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In millions of won | 2018 | |||||||||||||||||||||||||||
Non-cash changes | ||||||||||||||||||||||||||||
Beginning balance | Cash flows | Increase | Changes in accounting policies | Effect of exchange rate fluctuations and others | Increase from the business combination | Ending balance | ||||||||||||||||||||||
Borrowings and debt securities | 5,972,336 | — | — | 314,899 | — | 61,034,627 | ||||||||||||||||||||||
Finance lease liabilities | 418,260 | (134,454 | ) | — | — | — | — | 283,806 | ||||||||||||||||||||
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5,837,882 | — | — | 314,899 | — | 61,318,433 | |||||||||||||||||||||||
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
49. | Commitments for Expenditure |
(1) | The commitments for acquisition of property, plant and equipment as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Contracts | Amounts | Balance | Amounts | Balance | ||||||||||||
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo) | 24,721 | 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 | 15,300 | 29,143 | 18,194 | ||||||||||||
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S | 37,744 | 9,700 | 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 | 6,243 | — | — | ||||||||||||
Construction of Shin-Kori units (#3,4) | 7,498,951 | — | 7,363,514 | 3,211 | ||||||||||||
Construction of Shin-Kori units (#5,6) | 8,625,387 | 4,479,956 | 8,625,387 | 5,930,099 | ||||||||||||
Construction of Shin-Hanul units (#1,2) | 8,306,149 | — | 7,982,342 | 355,704 | ||||||||||||
Other 27 contracts | 352,710 | 122,890 | 269,681 | 161,243 | ||||||||||||
Service of designing Seoul Combined units (#1,2) | 30,778 | 2,119 | 29,996 | 4,744 | ||||||||||||
Purchase of main machine for construction of Seoul Combined units (#1,2) | 331,249 | 15,918 | 365,164 | 51,165 | ||||||||||||
Construction of Seoul Combined units (#1,2) | 387,722 | 31,150 | 285,890 | 27,125 | ||||||||||||
Purchase of smoke eliminating machine for construction of Shin-Boryeong units (#1,2) | �� | 157,618 | — | 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) | 816,317 | 4,955 | 866,065 | 4,981 | ||||||||||||
Purchase of furnace for construction of Shin-Seocheon thermal power plant | 305,209 | 43,388 | 305,209 | 74,631 | ||||||||||||
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant | 105,226 | 10,736 | 104,402 | 57,968 | ||||||||||||
Electricity construction of Shin-Seocheon thermal power plant | 231,196 | 87,874 | 217,848 | 174,122 | ||||||||||||
Purchase of main machine for Jeju LNG combined | 166,287 | 12,088 | 166,287 | 11,272 | ||||||||||||
Service of designing Taean IGCC plant units | 46,101 | 2,332 | 46,001 | 3,161 | ||||||||||||
Service of designing Taean units (#9,10) | 112,483 | 12,862 | 112,344 | 13,338 | ||||||||||||
Purchase of furnace for construction of Taean units (#9,10) | 556,206 | 17,579 | 556,504 | 18,502 | ||||||||||||
Purchase of turbine generator for construction of Taean units (#9,10) | 214,208 | 10,857 | 214,462 | 10,422 | ||||||||||||
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 oxygen plant for construction of Taean IGCC units | 97,345 | 1,630 | 96,068 | 1,552 | ||||||||||||
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant | 104,600 | 104,600 | — | — | ||||||||||||
Purchase of coal handling machine for construction of Samcheok units (#1,2) | 282,927 | 42,785 | 307,925 | 48,736 | ||||||||||||
Purchase of furnace for construction of Samcheok units (#1,2) | 1,066,824 | 11,771 | 1,092,287 | 12,215 | ||||||||||||
Purchase of turbine main equipment for Samcheok units (#1,2) | 223,550 | 132 | 212,188 | 348 | ||||||||||||
Purchase of main equipment for Namjeju | 138,486 | 84,982 | 146,594 | 134,949 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
49. | Commitments for Expenditure, Continued |
(2) | As of December 31, 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 Financial Statements, Continued
December 31, 2019
50. | Contingencies and Commitments |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2019 and 2018 are as follows: |
In millions of won | 2019 | 2018 | ||||||||||||||
Number of cases | Claim amount | Number of cases | Claim amount | |||||||||||||
As the defendant | 586 | 570 | ||||||||||||||
As the plaintiff | 199 | 707,287 | 174 | 793,491 |
As of December 31, 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 (Nuclear Safety and Security Commission) regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal was ongoing as of December 31, 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 after obtaining permission from the Court.
As of December 31, 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 to this vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of December 31, 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 on 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 recognizedW28,579 million of other provision in relation to the lawsuit as of December 31, 2019.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
50. | Contingencies and Commitments, Continued |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2019 and 2018 are as follows, continued: |
In addition to the abovementioned significant ongoing claims, there are 15 arbitration cases pertaining to the Group as of December 31, 2019 and the significant arbitration cases for the year ended December 31, 2019 are as follows:
① | 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. |
② | 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 26.(2), the Group recognized the litigation provisions of |
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 26.(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 December 31, 2019. |
⑥ | In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Group to the Indian Council of Arbitration due to disagreements in the contract, but the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated. |
(2) | Guarantees of payments and commitments provided to other companies as of December 31, 2019 are as follows: |
① | The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction. |
② | The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and investment guarantee up to USD 43,500 thousand to Mizuho bank and others in proportion to its ownership in the electricity purchase contract with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia. |
③ | The Group has provided MUFG Bank, Ltd. (MUFG) (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 Financial Statements, Continued
December 31, 2019
50. | Contingencies and Commitments, Continued |
(2) | Guarantees of payments and commitments provided to other companies as of December 31, 2019 and 2018 are as follows, continued: |
④ | 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. |
⑤ | 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. |
⑥ | The Group provides the DekaBank with an investment guarantee of EUR 13,800 thousand to Stavro Vind AB, to enter into a loan contract for the Sweden Wind Power (Stavro) construction operation project. |
⑦ | The Group is obligated to complete the construction of the waste oil refining for power generation business of Next energy Co.,Ltd. (contract amount : |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
50. | Contingencies and Commitments, Continued |
(3) | Credit lines provided by financial institutions as of December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||
Commitments | Financial institutions | Currency | Limited amount | Used amount | ||||||||
Commitments on Bank-overdraft | Nonghyup Bank and others | KRW | 1,825,500 | 373,219 | ||||||||
Commitments on Bank-daylight overdraft | Nonghyup Bank and others | KRW | 280,000 | — | ||||||||
Limit amount available for CP | Hana Bank and others | KRW | 1,250,000 | 1,150,000 | ||||||||
Limit amount available for card | Hana Bank and others | KRW | 51,904 | 6,686 | ||||||||
Banco de Oro | PHP | 5,000 | 3,000 | |||||||||
Loan limit | Kookmin Bank and others | KRW | 1,050,503 | 685,429 | ||||||||
DBS Bank and others | USD | 2,492,700 | �� | 14,400 | ||||||||
Certification of payment on payables from foreign country | Nonghyup Bank | USD | 4,680 | 3,892 | ||||||||
Certification of payment on L/C | Shinhan Bank | KRW | 7,749 | — | ||||||||
Shinhan Bank and others | USD | 1,051,334 | 171,975 | |||||||||
Societe Generale | MYR | 2,500 | 2,500 | |||||||||
Certification of Performance guarantee on contract | Seoul Guarantee Insurance and others | KRW | 84,011 | 66,892 | ||||||||
First Abu Dhabi Bank and others | USD | 596,862 | 465,093 | |||||||||
Korea Development Bank and others | JPY | 637,495 | 637,495 | |||||||||
Hana Bank and others | EUR | 4,158 | 4,158 | |||||||||
Hana Bank and others | INR | 191,883 | 191,883 | |||||||||
Hana Bank | CAD | 464 | 464 | |||||||||
Shinhan Bank | ZAR | 55,730 | 55,730 | |||||||||
Certification of bidding | Hana Bank | USD | 10,000 | 197 | ||||||||
Advance payment bond, Warranty bond, Retention bond and others | Seoul Guarantee Insurance | KRW | 44,047 | 44,047 | ||||||||
Export-Import Bank of Korea and others | USD | 714,654 | 649,402 | |||||||||
Hana Bank | SAR | 86,508 | 86,508 | |||||||||
SMBC Bank | QAR | 15,000 | 15,000 | |||||||||
Others | Nonghyup Bank and others | KRW | 537,064 | 47,638 | ||||||||
Export-Import Bank of Korea and others | USD | 1,562,194 | 1,315,378 | |||||||||
Shinhan Bank | JPY | 381,210 | 381,210 | |||||||||
Standard Chartered | AED | 50 | 50 | |||||||||
Inclusive credit | Hana Bank | KRW | 8,000 | 772 | ||||||||
Hana Bank and others | USD | 30,975 | 17,502 | |||||||||
Shinhan Bank | INR | 92,348 | 92,348 | |||||||||
Trade finance | BNP Paribas and others | USD | 700,000 | — |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
50. | Contingencies and Commitments, Continued |
(4) | As of December 31, 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 | 401,277 | Collateral for debt securities (*1) |
(*1) | This is based on the amount of loan commitment limit. |
(*2) | As of December 31, 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 December 31, 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 |
W75,634 million as of December 31, 2019, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations ofW49 million and depreciation on the utility plant ofW6,542 million are recorded in other expenses for the year ended December 31, 2019. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of December 31, 2019.
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
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 December 31, 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 as of December 31, 2019. |
51. | Business Combination |
(1) | The details of business combinations that occurred for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||
Company | Key operation activities | Date of merger | Transfer price | |||||||
Eumseong Natural Gas Power Co., Ltd. | Power generation | 2019.12.23 | 225,758 |
Eumseong Natural Gas Power Co., Ltd. was established in August 2019 byspin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8thBasic Plan for Long-Term Electricity Supply and Demand. Korea East-West Power Co., Ltd., a subsidiary of the Group, acquired 100% of its interest in Eumseong Natural Gas Power Co., Ltd. for stable power supply and profit generation through diversification of power sources, and merged with Eumseong Natural Gas Power Co., Ltd. on December 23, 2019.
(2) | Details of the transfer price at fair value given by the acquirer of the business combination for the year ended December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Cash and cash equivalents | ||||
Other trade payables | 10,000 | |||
Fair value of the shares owned before the acquisition | 59,058 | |||
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(3) | The fair values of assets and liabilities acquired through the business combination at the acquisition date for the year ended December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Fair value of the identifiable assets | ||||
Current assets | ||||
Cash and cash equivalents | ||||
Trade and other receivables | 55 | |||
Non-current assets | ||||
Property, plant and equipment | 54 | |||
Intangible assets | 172,434 | |||
Other assets | 60 | |||
Fair value of the identifiable liabilities | ||||
Current liabilities | ||||
Borrowings | (2,900 | ) | ||
Non-current liabilities | ||||
Deferred tax liabilities | (41,729 | ) | ||
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
51. | Business Combination, Continued |
(4) | Details of goodwill resulting from the business combination for the year ended December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Fair value of transfer price | ||||
Less : Fair value of the identifiable net assets | (130,363 | ) | ||
|
| |||
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Goodwill arose from the business combination due to the transfer price including the premium to obtain control paid in order to acquire Eumseong Natural Gas Power Co., Ltd. It also includes expectation of synergy effect and future growth in profits derived from business combination with LNG combined power generation project. These business rights can be separated from goodwill which satisfies the recognition requirements and thus the business rights have been recognized as a separate intangible asset.
On the contrary, the expected benefits such as direct fuel acquisition and reduce costs for O&M did not satisfy the recognition requirements for identifiable intangible assets and thus were not recognized separately from the goodwill.
(5) | Net cash outflows from the business combination for the year ended December 31, 2019 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Cash paid for the acquisition | ||||
Less : Cash and cash equivalents received | (2,389 | ) | ||
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(6) | Fees for legal service, due diligence and others relating to the business combination amounted to |
(7) | There is no sale or net profit included in the statement of comprehensive income (loss) for the year ended December 31,2019, in relation to additional business launched by Eumseong Natural Gas Power Co., Ltd. |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
52. | Subsequent Events |
(1) | Subsequent to December 31, 2019, Korea South-East Power Co., Ltd. and Korea Midland 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 South-East Power Co., Ltd. | Foreign bond | 2020.02.03 | 2025.02.03 | 2.13 | % | USD | 300,000 | |||||||||
Korea Midland Power Co., Ltd. | #54-1non-guaranteed corporate bond | 2020.02.25 | 2040.02.25 | 1.53 | % | KRW | 50,000 | |||||||||
#54-2non-guaranteed corporate bond | 2020.02.25 | 2050.02.25 | 1.53 | % | KRW | 120,000 |
(2) | Subsequent to December 31, 2019, Korea Western Power Co., Ltd. borrowed a foreign short-term borrowings for funding operations, and the details of the foreign short-term borrowings are as follows: |
Thousands of foreign currencies | ||||||||||||||||
Company | Type | Issue date | Maturity | Interest rate | Amount | |||||||||||
Korea Midland Power Co., Ltd. | foreign short-term borrowings | 2020.02.06 | 2020.05.06 | 1.97 | % | USD | 24,658 | |||||||||
foreign short-term borrowings | 2020.02.26 | 2020.05.26 | 1.86 | % | USD | 7,329 |
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Notes to the Consolidated Financial Statements, Continued
December 31, 2019
53. | 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 years ended December 31, 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 years.
In millions of won | 2019 | 2018 | ||||||
Operating loss on the consolidated statements of comprehensive loss | (208,001 | ) | ||||||
Add | ||||||||
Other income | ||||||||
Reversal of other provisions | 16,542 | 12,700 | ||||||
Reversal of other allowance for bad debt | — | 143 | ||||||
Gains on government grants | 281 | 482 | ||||||
Gains on assets contributed | 6,921 | 17,336 | ||||||
Gains on liabilities exempted | 916 | 10,303 | ||||||
Compensation and reparations revenue | 113,292 | �� | 89,901 | |||||
Revenue from research contracts | 5,276 | 6,818 | ||||||
Rental income | 191,088 | 186,631 | ||||||
Others | 58,849 | 51,032 | ||||||
Other gains | ||||||||
Gains on disposal of property, plant and equipment | 43,784 | 98,077 | ||||||
Gains on disposal of intangible assets | 206 | 12 | ||||||
Reversal of impairment loss on intangible assets | 16,692 | 17 | ||||||
Gains on foreign currency translation | 16,340 | 14,905 | ||||||
Gains on foreign currency transaction | 53,152 | 47,297 | ||||||
Gains on insurance proceeds | 17,410 | — | ||||||
Others | 238,688 | 221,556 | ||||||
Deduct | ||||||||
Other expense | ||||||||
Compensation and indemnification expense | (403 | ) | (23,437 | ) | ||||
Accretion expenses of other provisions | (7,939 | ) | (41,924 | ) | ||||
Depreciation expenses on investment properties | (5,069 | ) | (923 | ) | ||||
Depreciation expenses on idle assets | (6,542 | ) | (6,547 | ) | ||||
Other bad debt expense | (29,348 | ) | (17,827 | ) | ||||
Donations | (64,752 | ) | (63,743 | ) | ||||
Others | (127,860 | ) | (76,929 | ) | ||||
Other loss | ||||||||
Losses on disposal of property, plant and equipment | (72,508 | ) | (60,704 | ) | ||||
Losses on disposal of intangible assets | (827 | ) | (43 | ) | ||||
Impairment loss on property, plant and equipment | (50,034 | ) | (710,162 | ) | ||||
Impairment loss on intangible assets | (513,609 | ) | (8,112 | ) | ||||
Impairment loss on othernon-current assets | (49,620 | ) | (87,024 | ) | ||||
Losses on foreign currency translation | (8,757 | ) | (7,678 | ) | ||||
Losses on foreign currency transaction | (55,283 | ) | (65,366 | ) | ||||
Others | (217,892 | ) | (63,899 | ) | ||||
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| |||||
Adjusted operating loss | (685,109 | ) | ||||||
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